Realty Income Corp (O) 2024 Q3 法說會逐字稿

Good day, and welcome to the Realty Income third-quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加 Realty Income 2024 年第三季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Kelsey Mueller, Vice President, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係副總裁凱爾西·穆勒 (Kelsey Mueller)。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, Chief Financial Officer and Treasurer.

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；財務長兼財務長 Jonathan Pong。

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

在本次電話會議期間，我們將做出根據聯邦證券法可能被視為前瞻性聲明的聲明。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。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。 （操作員說明）

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

我現在將把電話轉給我們的執行長 Sumit Roy。

Thank you, Kelsy. Welcome, everyone. Realty Income's third quarter results highlight our continued momentum, disciplined execution and the benefits of our global investment and operating platform. Our value proposition to investors is simple, a real estate partner to the world's leading companies. We've created a defensive and diversified real estate portfolio consisting of top-tier clients to drive stable and predictable cash flow.

謝謝你，凱爾西。歡迎大家。 Realty Income 第三季業績凸顯了我們持續的發展勢頭、嚴格的執行力以及我們全球投資和營運平台的優勢。我們對投資者的價值主張很簡單，是世界領先公司的房地產合作夥伴。我們創建了由頂級客戶組成的防禦性多元化房地產投資組合，以推動穩定且可預測的現金流。

As a result, we've delivered positive total operational returns each year since becoming a public company 30 years ago, successfully navigating a variety of economic environments.

因此，自 30 年前成為上市公司以來，我們每年都實現了積極的總營運回報，成功應對了各種經濟環境。

Importantly, as we move through an improving external backdrop helped by a recent rate cut in the US, we've started to see a more attractive transaction landscape. Given this, we are pleased to increase our 2024 investment volume guidance to approximately $3.5 billion, underpinned by strong investment activity year-to-date as well as a robust pipeline for the fourth quarter.

重要的是，隨著美國近期降息的推動，外部環境不斷改善，我們開始看到更具吸引力的交易格局。有鑑於此，我們很高興將 2024 年投資額指引提高至約 35 億美元，這得益於今年迄今強勁的投資活動以及第四季強勁的投資管道。

Concurrently, we are raising the low end of our AFFO per share guidance for the year to a range of $4.17 to $4.21. Despite some recent volatility driven by exogenous factors, we remain confident in our strategic vision and the opportunity ahead.

同時，我們將今年 AFFO 每股指引的下限上調至 4.17 美元至 4.21 美元的範圍。儘管近期因外部因素造成一些波動，但我們對我們的策略願景和未來機會仍然充滿信心。

Our investment strategy offers significant opportunities for growth across multiple verticals, including our core of retail and industrial and newer verticals such as data centers and gaming. At the same time, we are making progress towards the establishment of a private capital fund, which I'll touch on later in this call.

我們的投資策略為多個垂直領域的成長提供了重大機會，包括我們的核心零售和工業以及資料中心和遊戲等較新的垂直領域。同時，我們正在建立私募資本基金方面取得進展，我將在本次電話會議稍後討論這個問題。

Turning to the details of the third quarter. We delivered AFFO per share of $1.05, representing a 2.9% growth compared to last year. We invested $740 million into high-quality opportunities at a blended 7.4% initial cash yield or a 7.8% straight-line yield assuming CPI growth of 2%. Of this, $378 million of volume was invested in the US at a 7.4% initial cash yield with a balance of $362 million invested in Europe at a 7.3% initial cash yield.

轉向第三季的細節。我們交付的 AFFO 每股為 1.05 美元，比去年增長 2.9%。我們向優質機會投資了 7.4 億美元，初始現金收益率為 7.4%，假設 CPI 成長 2%，直線收益率為 7.8%。其中，3.78 億美元投資於美國，初始現金收益率為 7.4%；其餘 3.62 億美元投資於歐洲，初始現金收益率為 7.3%。

We've seen meaningful improvements in both the US and Europe. Our international markets continue to contribute a greater share of volume relative to prior years with healthy investment activity year-to-date, exemplifying the benefits we achieved by cultivating multiple avenues for growth.

我們在美國和歐洲都看到了有意義的進步。與往年相比，我們的國際市場持續貢獻更大的交易量份額，年初至今投資活動健康，這反映了我們透過培育多種成長途徑所取得的效益。

In total, we completed 70 discrete transactions, including four transactions over $50 million, which represented nearly 60% of our investment volume, highlighting the breadth of our platform. As I noted, the momentum we are seeing in the transaction market supports increase to this year's investment volume guidance to $3.5 billion.

我們總共完成了 70 筆離散交易，其中 4 筆交易超過 5,000 萬美元，占我們投資額的近 60%，凸顯了我們平台的廣度。正如我所指出的，我們在交易市場看到的勢頭支持將今年的投資額指引提高至 35 億美元。

In the third quarter, our organic acquisition activity, which excludes credit investments as well as development spending largely negotiated in prior quarters totaled $594 million or more than double the second quarter's volume.

第三季度，我們的有機收購活動（不包括信貸投資以及前幾季度主要協商的開發支出）總計 5.94 億美元，是第二季度交易量的兩倍多。

We expect further momentum through the balance of the year, with an implied fourth quarter outlook of approximately $1.3 billion in investments, which is fully funded as we are vigilantly focused on deploying capital into high-quality opportunities that meet our risk-adjusted return requirements.

我們預計今年剩餘時間將出現進一步的成長勢頭，預計第四季度的投資額約為13 億美元，這些投資資金充足，因為我們警惕地致力於將資本部署到滿足我們的風險調整回報要求的高品質機會中。

Capital deployed in the third quarter yielded an investment spread of 243 basis points, above our historical average spread of 150 basis points. This spread was supported by $165 million of adjusted free cash flow available after dividend payments to fund investments. These spreads are based on our short-term nominal cost of capital that measures the year one dilution from utilizing external capital and excess free cash flow on a leverage-neutral basis to fund our investment volume.

第三季部署的資本產生了 243 個基點的投資利差，高於 150 個基點的歷史平均利差。這一利差得到了基金投資股息支付後可用的 1.65 億美元調整後自由現金流的支撐。這些利差是基於我們的短期名目資本成本，該成本衡量第一年在槓桿中性的基礎上利用外部資本和超額自由現金流為我們的投資額提供資金所帶來的稀釋。

As a reminder, our ultimate investment decisions are based on our long-term weighted average cost of capital, which burdens every dollar of equity with the same cost of equity.

提醒一下，我們的最終投資決策是基於我們的長期加權平均資本成本，這為每一美元的股本帶來相同的股本成本。

Underpinning our increased investment activity of external capital improved by approximately 65 basis points in the third quarter. This compares to the decline in our weighted average initial cash yield of approximately 50 basis points during the quarter.

第三季外部資本投資活動增加約 65 個基點，為我們提供了支撐。相較之下，本季我們的加權平均初始現金收益率下降了約 50 個基點。

Turning to portfolio operations. We've created a diversified portfolio of more than 15,400 properties with high-quality clients that have proven resilient through various economic cycles and continue to deliver stable returns.

轉向投資組合操作。我們與高品質客戶創建了超過 15,400 個房產的多元化投資組合，這些客戶在不同的經濟週期中都表現出彈性，並持續提供穩定的回報。

In addition, our vast data availability, proprietary predictive analytic tools and insights of our asset management and research teams enhance our ability to anticipate future trends. We finished the quarter with 98.7% occupancy, a 10 basis points decrease from the prior quarter. Our rent recapture rate on the 170 leases we renewed was 105% and totaling approximately $38 million in new annualized cash rent, thanks to the diligent efforts of our team.

此外，我們龐大的數據可用性、專有的預測分析工具以及資產管理和研究團隊的見解增強了我們預測未來趨勢的能力。本季的入住率為 98.7%，比上一季下降 10 個基點。在我們團隊的辛勤努力下，我們續約的 170 份租約的租金回收率為 105%，新增年化現金租金總計約 3,800 萬美元。

Separately, we are continuing to lean into dispositions as an additional source of capital. In the third quarter, we sold 92 properties for total net proceeds of $249 million, of which $87 million was related to vacant properties. This brings our year-to-date total to $451 million. For the year, we now expect proceeds of $550 million to $600 million in asset sales.

另外，我們繼續傾向於將處置作為額外的資本來源。第三季度，我們出售了 92 處房產，淨收益總額為 2.49 億美元，其中 8,700 萬美元與空置房產相關。這使得我們今年迄今的總金額達到 4.51 億美元。目前，我們預計今年的資產出售收益將達到 5.5 億至 6 億美元。

With that, I'd like to turn it over to Jonathan to discuss our third quarter financial results in more detail.

至此，我想將其交給喬納森，更詳細地討論我們第三季的財務表現。

Thank you, Sumit. We are pleased to deliver over another strong quarter while increasing our investment in AFFO guidance for the year, reflecting continued momentum. Consistent with our investment strategy, we remain disciplined in our balance sheet management.

謝謝你，蘇米特。我們很高興再次實現強勁的季度業績，同時增加了今年對 AFFO 指導的投資，反映出持續的勢頭。根據我們的投資策略，我們在資產負債表管理方面保持嚴格。

Our strong balance sheet underscored by A3A-minus credit ratings and deep access to capital globally continue to represent significant competitive advantages, fueling the opportunity to grow earnings through multiple channels.

A3A-信用評級和深入的全球資本管道凸顯了我們強大的資產負債表，繼續代表著顯著的競爭優勢，推動了透過多種管道增加收益的機會。

Our leverage, as measured by net debt to annualized pro forma adjusted EBITDA was a healthy 5.4 times, well within our target ratio or 5.2 times including $969 million of unsettled forward equity outstanding as of today.

我們的槓桿率（以淨負債與年化預計調整後 EBITDA 的比率衡量）為健康的 5.4 倍，完全符合我們的目標比率或 5.2 倍，其中包括截至今天未結算的遠期股本 9.69 億美元。

Our fixed charge coverage ratio of 4.6 times remains in line with the 4.5 times to 4.7 times range. We have delivered consistently over the last seven quarters. A focus on derisking our future funding needs was a catalyst behind our two bond offerings during the third quarter, which consisted of a $500 million 30-year US dollar bond offering and an effective semiannual yield to maturity of 5.49% and a dual tranche sterling bond offering that raised GBP700 million at a weighted average tenor of 11.1 years and a weighted average annual yield maturity of 5.4%. These offerings illustrate the diversity of debt products available to us and the intentionality of our capital diversification philosophy.

我們的固定費用覆蓋率為 4.6 倍，與 4.5 倍至 4.7 倍的範圍保持一致。我們在過去七個季度中始終如一地交付成果。對降低未來融資需求風險的關注是我們在第三季度發行兩次債券的催化劑，其中包括發行 5 億美元的 30 年期美元債券、有效半年到期收益率為 5.49% 以及雙檔英鎊債券此次發行籌集了7 億英鎊，加權平均期限為11.1 年，加權平均年收益率為5.4%。這些產品說明了我們可用的債務產品的多樣性以及我們資本多元化理念的意圖。

Our 30-year offering was our first 30-year issuance since 2017, and our public sterling offering was our fifth non-US public bond offering in approximately three years, bringing our foreign denominated outstanding unsecured debt to over $8 billion. We are grateful for the loyal support we have received from the fixed income community as we continue to expand our credit presence globally.

我們的30 年期發行是我們自2017 年以來首次發行30 年期債券，而我們的公開英鎊發行是我們大約三年內第五次非美國公開債券發行，使我們以外幣計價的未償無擔保債務超過80 億美元。在我們持續擴大全球信貸業務的過程中，我們感謝固定收益界給予我們的忠誠支持。

At quarter end, we held $5.2 billion of liquidity, including unsettled forward equity, in addition to retaining almost full capacity net of cash available on our $4.25 billion revolving credit facility, only 3.4% of our outstanding debt at the end of the quarter was variable rate in nature, illustrating the financing flexibility we have heading into the end of the year.

截至季末，我們持有52 億美元的流動性，包括未結算的遠期股本，除了保留幾乎全部容量（扣除42.5 億美元循環信貸額度的可用現金）外，季度末未償債務中只有3.4 % 是可變的利率本質上，說明了我們在年底之前的融資彈性。

Access to capital is paramount to the success of our company and our portfolio size, scale, diversification and our trading liquidity in the public markets, have consistently afforded us well all priced capital to grow with large-scale, high-quality investment opportunities.

獲得資本對於我們公司的成功至關重要，我們的投資組合規模、規模、多元化以及我們在公開市場上的交易流動性，一直為我們提供優質的所有定價資本，以實現大規模、高品質投資機會的成長。

With that said, we strive to demonstrate a proactive forward-looking mindset as we plan, position and evolve our financing strategy for future growth. Over the last few years, we have evaluated additional sources of equity capital beyond the public markets and have recently begun in earnest to build a private capital infrastructure that we believe, over time, will leverage our strengths and expand the breadth of our capital allocation opportunities globally.

儘管如此，我們在規劃、定位和發展未來成長的融資策略時，努力展現積極主動的前瞻性思維。在過去的幾年裡，我們評估了公開市場之外的其他股權資本來源，最近開始認真建設私人資本基礎設施，我們相信隨著時間的推移，該基礎設施將發揮我們的優勢並擴大我們資本配置機會的廣度全球。

I would like to hand it back to Sumit to provide additional color. Sumit?

我想把它交回 Sumit 以提供額外的顏色。蘇米特？

Thank you, Jonathan. As we mentioned last year, a natural step in our evolution is to diversify and enlarge our access to equity capital through private markets. We see multiple strategic benefits of entering the private capital business.

謝謝你，喬納森。正如我們去年所提到的，我們發展的一個自然步驟是透過私人市場多元化並擴大我們獲得股權資本的管道。我們看到進入私募資本業務的多重策略優勢。

First, the amount of equity available from private sources far exceeds that, which is available through the public markets we have traditionally accessed. The size of the US private real estate market is approximately $18.8 trillion, 10 times larger than the $1.9 trillion of assets owned by public REITs. Thus, private capital controls more than 90% of the US commercial real estate market based on research from the National Association of Real Estate Investment Trusts.

首先，從私人來源獲得的股權數量遠遠超過我們傳統上透過公開市場獲得的股權數量。美國私人房地產市場規模約為18.8兆美元，是公共REITs擁有的1.9兆美元資產的10倍。因此，根據全國房地產投資信託協會的研究，私人資本控制著美國商業房地產市場90%以上的份額。

Creation of a private capital investment platform is expected to provide us with access to a deep pool of institutional capital from investors who may otherwise lack the mandate or ability to invest in real estate securities.

私人資本投資平台的創建預計將使我們能夠從投資者那裡獲得深厚的機構資本，否則這些投資者可能缺乏投資房地產證券的授權或能力。

Second, access to the alternative source of equity with generally less pricing volatility will give us the opportunity to accelerate the monetization of the scalable and proven investment in operating platform we have built, in turn, supporting our ability to continue delivering value to shareholders.

其次，獲得價格波動通常較小的替代股權來源將使我們有機會加速我們所建立的可擴展且經過驗證的營運平台投資的貨幣化，反過來，支持我們繼續為股東創造價值的能力。

Third, a powerful element of the fund management strategy is the incremental capital-light fee earnings it's anticipated to offer. Base management income earned by managing third-party capital represents a source of recurring and potentially high-growth revenue, which we observed as receiving a premium multiple from the investment community. The vast majority of fees earned would be recurring in nature and generated through open-end perpetual life funds rather than performance-based or transaction-oriented fees.

第三，基金管理策略的一個強大要素是預期提供的增量輕資本費用收益。透過管理第三方資本賺取的基本管理收入代表了經常性和潛在高成長收入的來源，我們觀察到它從投資界獲得了溢價倍數。所賺取的絕大多數費用本質上是經常性的，並透過開放式永續壽險基金產生，而不是基於績效或交易導向的費用。

Fourth, the capability of our differentiated business model will allow us to advance this initiative with limited incremental investment while leveraging the collective talent and experience of our top-tier team and platform. We have a long history of underwriting, operating and maximizing the value of our real estate holdings, dating back to our founding in 1969. Leveraging that history, we have harnessed an impressive quantum of property level data to develop our proprietary predictive analytics model to support decision-making.

第四，我們差異化業務模式的能力將使我們能夠以有限的增量投資來推進這項舉措，同時利用我們頂級團隊和平台的集體人才和經驗。我們在承保、營運和最大化我們的房地產資產價值方面擁有悠久的歷史，可以追溯到1969 年成立。模型來支援決策。

With additional size and scale, these data-driven insights will become increasingly robust and accurate. Together with the expertise of our team, we believe we provide a compelling co-investing platform for investors.

隨著規模和規模的擴大，這些數據驅動的見解將變得越來越穩健和準確。憑藉我們團隊的專業知識，我們相信我們可以為投資者提供一個引人注目的聯合投資平台。

Finally, we believe private capital will enable us to source, acquire and manage a large percentage of available market opportunities that we currently acquire for the public vehicle. Overall, our intent is to create and operate an evergreen open-end fund that will manage private capital on behalf of institutional investors, such as pension funds, sovereign wealth funds, endowments, foundations and large insurance companies.

最後，我們相信私人資本將使我們能夠尋找、獲取和管理我們目前為公共車輛獲取的大部分可用市場機會。整體而言，我們的目的是創建和經營一支常青開放式基金，代表退休基金、主權財富基金、捐贈基金、基金會和大型保險公司等機構投資者管理私人資本。

To be clear, this structure will be distinct from a typical private equity style closed-end fund that may have a fixed duration or a narrower opportunity set. Importantly, this fund will be designated to target institutional investors. It will not be structured as a non-traded REIT, and we do not intend to market to high net worth or retail investors. Our fund business is expected to follow the same balance sheet and prudent leverage philosophy that Realty Income describes today.

需要明確的是，這種結構將不同於典型的私募股權風格的封閉式基金，後者可能具有固定的久期或更窄的機會集。重要的是，該基金將專門針對機構投資者。它不會被建構為非交易房地產投資信託基金，我們也不打算向高淨值投資者或散戶投資者推銷。我們的基金業務預計將遵循房地產收入今天描述的相同資產負債表和審慎槓桿概念。

We do not anticipate an adverse impact on our balance sheet strength or credit ratings. Rather, it will enhance our financial flexibility. Realty Income intends to be a meaningful co-investor in the fund while receiving management and potentially incentive fees generated by operation of the fund. These additional earnings would bolster Realty Income's return on investment while ensuring incentives between public and private investors are aligned. This approach also reinforces our commitment to transparency and shared objectives.

我們預計不會對我們的資產負債表實力或信用評級產生不利影響。相反，它將增強我們的財務靈活性。 Realty Income 打算成為該基金有意義的聯合投資者，同時收取基金營運產生的管理費和潛在的激勵費。這些額外收入將提高 Realty Income 的投資回報率，同時確保公共和私人投資者之間的激勵措施保持一致。這種方法也強化了我們對透明度和共同目標的承諾。

In summary, we believe this private capital platform will be complementary and additive to our existing business. We intend to take a thoughtful approach to allocating investment opportunities between realty income and the fund to maximize the returns for our public shareholders, benefiting both our shareholders and private investors.

總而言之，我們相信這個私募資本平台將是我們現有業務的補充和補充。我們打算採取深思熟慮的方法在房地產收入和基金之間分配投資機會，以最大限度地提高我們的公眾股東的回報，使我們的股東和私人投資者受益。

We expect this initiative to enhance our ability to grow our earnings and dividend, expand our addressable market for investments and reduce our reliance on public equity across market cycles when strategically advantageous. We look forward to sharing more information as we progress on launching the fund.

我們預計這項舉措將增強我們增加收益和股息的能力，擴大我們的潛在投資市場，並在具有戰略優勢時減少我們在整個市場週期中對公共股權的依賴。隨著我們啟動該基金的進展，我們期待分享更多資訊。

In closing, our year-to-date performance has exceeded our expectations, propelled by momentum on the investment front and supported by the stability of our portfolio, consisting of leading clients across the globe.

最後，我們今年迄今為止的業績超出了我們的預期，這得益於投資方面的勢頭以及我們由全球領先客戶組成的投資組合穩定性的支持。

Looking forward, I'm optimistic about the multiple verticals for growth we have cultivated for capital deployment. Importantly, pairing these growth verticals with alternative sources of capital will further accelerate the maturation of our platform.

展望未來，我對我們為資本部署所培養的多個垂直成長領域持樂觀態度。重要的是，將這些成長垂直領域與替代資本來源結合將進一步加速我們平台的成熟。

I would now like to open it up for questions. Operator?

我現在想打開它來提問。操作員？

(Operator Instructions). John Kulikowski, Wells Fargo.

（操作員說明）。約翰‧庫利科夫斯基，富國銀行。

Maybe if we could jump to the 3Q acquisition guide -- or excuse me, just the acquisition numbers you put up and then talk about the acquisition guide for 4Q. There was a good bit of cap rate compression. Just curious what's going on in the acquisition market.

也許我們可以跳到第三季的收購指南——或者對不起，只是你提出的收購數字，然後討論第四季的收購指南。資本化率受到了很大的壓縮。只是好奇收購市場發生了什麼事。

And then maybe part two of that would be you have a big step-up in terms of acquisition volumes. I'm curious if you can speak to the potential for maybe a transaction on the large 7-Eleven deal. And then if so, given where we've talked about cap rates being for that deal, is that accretive to your long-term weighted average cost of capital?

然後也許第二部分是你在收購量方面有一個巨大的進步。我很好奇您能否談談 7-11 大型交易的潛力。如果是這樣，考慮到我們已經討論過該交易的資本化率，這是否會增加您的長期加權平均資本成本？

There's a lot of questions you've asked, John. So let me just take it one at a time. The $740 million that we did in the third quarter at a 4% cap rate, you're absolutely right. It is 50 basis points inside of what we did in the second quarter, which was a [7.9%] cap, but it is also a function of the cost of capital.

約翰，你問了很多問題。所以讓我一次只拿一個。我們在第三季以 4% 的資本化率完成了 7.4 億美元的投資，你說得完全正確。這比我們第二季的上限 [7.9%] 低了 50 個基點，但它也是資本成本的函數。

If you notice, our cost of capital improved during the third quarter vis-a-vis what we -- where we were at the beginning of the year. And that improvement was about 65 basis points. So despite the 50 basis points of cash yield compression, the fact that our cost of capital has improved by 65 basis points, it was more accretive to do the transactions that we did in the third quarter with the lower cost of capital that we were able to experience versus what we had done in the first half.

如果您注意到的話，我們的資本成本在第三季相對於年初有所改善。改善幅度約 65 個基點。因此，儘管現金收益率壓縮了 50 個基點，但我們的資本成本改善了 65 個基點，但我們在第三季度以較低的資本成本進行的交易更具增值性。的事情進行比較。

So to look at anything in isolation, just based on cap rate or just based on cost of capital, I think may lead you to the wrong conclusion. So I would request that you take those two pieces in conjunction to figure out what is the true spread that we are being able to cultivate through these investments.

因此，孤立地看待任何事情，僅基於資本化率或僅基於資本成本，我認為可能會導致您得出錯誤的結論。因此，我要求您將這兩部分結合起來，以弄清楚我們能夠透過這些投資培養的真正價差是多少。

The second question that you had was around the $1.3 billion approximately that we are anticipating closing in the fourth quarter. It is true that we have a very healthy pipeline and it is largely a function of what we were experiencing for most of the -- all of the third quarter, say for what's happened over the last week, 1.5 weeks where there's been a lot more volatility on the cost of capital side.

您提出的第二個問題是我們預計第四季完成的金額約為 13 億美元。確實，我們有一個非常健康的管道，這在很大程度上取決於我們在第三季的大部分時間裡所經歷的情況，比如說上週，1.5 週發生的事情，其中​​發生了更多的事情資本成本方面的波動性。

But that has allowed us to basically build our pipeline and we have essentially forward funded all of the $1.3 billion that we are planning on investing in the fourth quarter. So we have zero reliance at this point in the public markets to help finance what we are planning on achieving with regards to our fourth quarter numbers.

但這使我們能夠基本上建立我們的管道，並且我們基本上已經為我們計劃在第四季度投資的所有 13 億美元提供了遠期資金。因此，目前我們對公共市場的依賴為零，以幫助為我們計劃實現的第四季度數位目標提供資金。

The volatility in the cost of capital is something that we always take into account when we are looking at potential opportunities and making sure that we have enough margin of safety in any particular transaction that we pursue is critical to how we think about making investments.

當我們尋找潛在機會時，我們總是必須考慮資本成本的波動性，並確保我們在我們追求的任何特定交易中擁有足夠的安全邊際，這對於我們如何考慮投資至關重要。

And long term, making sure that our hurdle rates on the long-term cost of capital is superseded by, again, a healthy margin is inherently important to what we do. I'm not going to go into specifics around what transactions make up the fourth quarter.

從長遠來看，確保我們的長期資本成本門檻率被健康的利潤率所取代，這對我們的工作來說本質上很重要。我不會詳細討論第四季的交易情況。

But we've heard certain comments around there being a difference in when you're buying a large portfolio versus the one-off market. I can assure you that we are in the one-off market every day. And just because you mentioned 7-Eleven, there are 35 transactions that have taken place in 2024 year-to-date and with the same approximate lease term, et cetera, if you look at where they traded, they traded at a 5 to 9 cap rate.

但我們聽到了一些評論，認為購買大型投資組合與購買一次性市場是有區別的。我可以向你保證，我們每天都處於一次性市場。僅僅因為你提到了 7-11，2024 年迄今為止已經發生了 35 筆交易，並且租賃期限大致相同，等等，如果你看看他們的交易地點，他們的交易價格是 5 比 9上限率。

Anytime we are pursuing a portfolio deal and there were large -- four large portfolio deals that we were able to accomplish in the third quarter, we make sure that it is at a discount to what we would be able to find in the one-off market.

每當我們尋求投資組合交易，並且我們在第三季能夠完成四筆大型投資組合交易時，我們都會確保其價格低於我們一次性能夠找到的交易價格市場。

And that has played out. If you look at what our the actual rent is compared to market rent that we bought, the $740 million. The rent that is inherent in that $740 million of investments is 6% below market and 26% below replacement costs. That is why we feel very confident that on a risk-adjusted basis, the transactions that we are pursuing are ones that will create long-term value for our investors.

這已經發生了。如果你看一下我們的實際租金與我們購買的市場租金（7.4 億美元）的比較。這 7.4 億美元投資的固有租金比市場價格低 6%，比重置成本低 26%。這就是為什麼我們非常有信心，在風險調整的基礎上，我們正​​在進行的交易將為我們的投資者創造長期價值。

Greg McGinniss, Scotiabank.

格雷格·麥金尼斯，豐業銀行。

Sumit, although you mentioned an improving acquisition environment benefiting full year investments based on this foray into private capital market equity raising, it seems like kind of inherently saying the limiting factor on acquisition volume this year has been capital raising and not lack of sourcing investments at widened up spreads. Do you expect the cost of equity in the fund business is going to be lower?

Sumit，雖然您提到基於這次進軍私人資本市場股權融資，收購環境的改善有利於全年投資，但似乎本質上是在說今年收購量的限制因素是融資，而不是缺乏採購投資。 。您預期基金業務的股權成本會降低嗎？

And how well investment philosophies between the fund and core business differ to avoid any potential conflicts of interest when determining where an investment should be placed?

在決定投資方向時，基金和核心業務之間的投資理念有何不同，以避免任何潛在的利益衝突？

That's a very good question, Greg. The biggest difference between the private markets and the public markets that I can point to is this focus on first year spread versus a focus on long-term IRR. When we are looking at a particular transaction that is inside of our historical spreads, which has been 150 basis points, we hesitate to pursue that transaction because it is not in line with what we can generate in the first year.

這是一個非常好的問題，格雷格。我可以指出的私募市場和公開市場之間的最大區別是，關注第一年利差與關注長期內部報酬率。當我們查看歷史利差（150 個基點）內的特定交易時，我們會猶豫是否要進行該交易，因為它與我們第一年所能產生的交易不符。

And as you know, better than most, that we are valued off of that initial spread that we are able to capture, which then translates into AFFO per share growth. But that does not allow us to pursue transactions that have a similar, potentially even a higher total return profile given the inherent growth, et cetera, that they might have despite having a much lower initial cash cap rate.

如您所知，我們比大多數人都知道，我們的估值來自我們能夠捕獲的初始價差，然後轉化為 AFFO 每股成長。但這不允許我們追求具有相似的、甚至可能更高的總回報率的交易，因為它們可能具有固有的增長等，儘管它們的初始現金上限率要低得多。

That is where we feel like being able to access private capital that has similar expectations on the long-term horizon, the return horizon that we have -- we focus on even as a standalone public entity, but not with that short-term focus, as acutely as the public entity does, will allow us to expand our sandbox and make investments alongside this private capital business, to take advantage of much higher growth rate opportunities, but potentially at a lower initial yield. So we think of this as truly complementary to our business. Go ahead. Were you going to ask something else?

這就是我們覺得能夠獲得私人資本的地方，這些資本對長期前景、回報前景有著類似的期望——我們甚至作為一個獨立的公共實體也關注這一點，但不關注短期，與公共實體一樣敏銳，將使我們能夠擴大我們的沙箱並與私人資本業務一起進行投資，以利用更高的成長率機會，但可能會降低初始收益率。因此，我們認為這對我們的業務來說是真正的補充。前進。你還想問別的嗎？

Yes. I just was hoping you might be able to give us maybe some examples as to types of investments or tenants that you guys have had to pass up on because of current structure versus what this this new type of equity capital will allow you to pursue?

是的。我只是希望你能給我們一些例子，說明你們因當前結構而不得不放棄的投資或租戶類型，以及這種新型股權資本將允許你們追求什麼？

Sure. Industrial is a perfect example. We've looked at opportunities in the 5.5 ZIP code. We cannot go there today. As -- based on where our cost of capital is, with 3% growth, 20-year leases. You do the math and you're going to have a return profile, that is very much in line with what we're looking for long term, but we can't pursue that particular transaction because of what the -- maybe not the dilution, but the non-spread day one, that's a perfect example. There are other asset types.

當然。工業就是一個完美的例子。我們研究了 5.5 郵遞區號中的機會。我們今天不能去那裡。根據我們的資本成本情況，成長率為 3%，租期為 20 年。你計算一下，你就會得到一個回報概況，這與我們所尋求的長期目標非常一致，但我們無法進行該特定交易，因為——也許不是稀釋，但非傳播第一天，這是一個完美的例子。還有其他資產類型。

Data centers being a perfect example of another asset type that is going to fall squarely in this bucket, which we may not be able to pursue currently given our cost of capital. And that is a particular area of the business that we believe can help drive earnings growth for the public entity in years to come. (multiple speakers)

資料中心是另一種資產類型的完美例子，它完全屬於這一類，考慮到我們的資本成本，我們目前可能無法實現這一目標。我們相信，這是該業務的一個特定領域，可以幫助推動公共實體在未來幾年的獲利成長。 （多個發言者）

Brad Heffern, RBC Capital Markets.

Brad Heffern，加拿大皇家銀行資本市場部。

Yes. So it sounds like really the target for the fund would be just a lower cap rate opportunity set. I'm curious, do you expect that there would be any overlap in the investment profiles between the two vehicles?

是的。因此，聽起來該基金的目標實際上只是降低上限利率的機會集。我很好奇，您預計這兩種工具之間的投資情況會有重疊嗎？

Of course, we are going to continue to be a very large equity holder in the fund. So our interests are going to be perfectly aligned. So there will be a lot of opportunities that we are going to be looking at, which actually works for both entities long term, but potentially in the short term does not work for the stand-alone public entity. But this is also going to be a function of the capital raising.

當然，我們將繼續成為該基金的大股東。所以我們的利益將會完全一致。因此，我們將尋找許多機會，這些機會實際上對兩個實體都長期有效，但在短期內可能不適用於獨立的公共實體。但這也將是融資的功能。

We are not going to be buying things into the farm that we would never have touched even taking the long-term return profile into account as a public entity. So this is truly to enhance the box and to pursuit transactions, assuming our capital raising is successful, and participate together through the fund structure. That is how we would like to deploy capital.

即使考慮到作為公共實體的長期回報狀況，我們也不會從農場購買我們永遠不會接觸的東西。所以這確實是為了增強盒子並追求交易，假設我們的融資成功，並透過基金結構共同參與。這就是我們希望部署資本的方式。

Okay. And then do you have any sort of target in mind for a size where it makes sense, given just the added complication?

好的。然後，考慮到增加的複雜性，您是否有任何有意義的尺寸目標？

I hope it's going to be very simple. What causes added complication. Well, it's a different pocket of capital, but unlike pockets of capital that have finite life, this is a perpetual vehicle. And we are going to be very large co-investors in this perpetual vehicle. And for all intents and purposes, it will be fully consolidated with our financial statements. So you will have perfect visibility.

我希望事情會變得非常簡單。是什麼導致了更多的併發症。嗯，這是一個不同的資本口袋，但與壽命有限的資本口袋不同，這是一個永久的工具。我們將成為這個永久工具的巨大聯合投資者。出於所有意圖和目的，它將與我們的財務報表完全合併。所以您將擁有完美的視野。

The fact that we have scale and the fact that we have a platform that we are very proud of, unfortunately, does not get valued at points in time by the public markets. And this is a way for us to monetize this platform and, therefore, incur very little incremental cost to stand up this vehicle.

不幸的是，我們擁有規模和我們引以自豪的平台這一事實在某些時候並沒有得到公開市場的重視。這是我們透過該平台貨幣化的一種方式，因此，建立該車輛所需的增量成本非常少。

That, too, is a value that our current platform is going to bring. And I might go so far as to say that given our size and scale, which we have talked about being such a massive advantage, this is one of the ways that we can show that to the market.

這也是我們目前平台將帶來的價值。我甚至可以說，考慮到我們的規模和規模，我們已經說過這​​是一個巨大的優勢，這是我們向市場展示這一優勢的方式之一。

Smedes Rose, Citigroup.

斯梅德斯·羅斯，花旗集團。

I wanted to ask a little bit about the $63 million charge in the quarter related to convenience store client. Is that related to the same client where you took some smaller charges in the first half of the year? And could you maybe just talk a little bit more about kind of what the outcome be there? I guess you can't name the client, but maybe just a little more color around what's going on there?

我想詢問一下本季與便利商店客戶相關的 6,300 萬美元費用。這是否與您在上半年收取了一些較小費用的同一客戶有關？您能否再多談談最終的結果？我想你不能說出客戶的名字，但也許只是對那裡發生的事情有更多的了解？

First of all, I'd say we absolutely expect a fair welcome. We've talked historically about situations where we've had credit issues in the portfolio, we've recouped north of 80% of rent that's been impacted. As it relates to the accounting that drove the $64 million charge, it's non-cash first and foremost, it really has to do with the fact that upon the allocation of the original purchase price. You've got land, you've got building and then you've got the intangible, which is meant to account for the future cash flows inherent in the lease.

首先，我想說我們絕對期待受到公平的歡迎。我們過去討論過投資組合中出現信用問題的情況，但我們已經收回了 80% 以上受到影響的租金。由於它與推動 6400 萬美元費用的會計相關，因此它首先是非現金的，它確實與原始購買價格的分配有關。你有土地，有建築物，然後還有無形資產，這意味著租賃中固有的未來現金流。

And so the reserve that you see, which rolls into impairment, but is classified because these were originally sale leasebacks as a financing receivables. And that's really just a difference in nomenclature and that's why it's excluded from from AFFO is non-cash. And we've already expensively accounted for all of the lost rent for the entire of 2024 that's built into our guidance.

因此，您看到的準備金會轉入減損，但會被分類，因為這些最初是作為融資應收款的售後回租。這實際上只是命名上的差異，這就是為什麼它被排除在 AFFO 之外的是非現金。我們已經將 2024 年全年的租金損失全部納入我們的指導中，成本高昂。

-- And I'll just add it to that just because we're talking about credit, let me just share a bit more. I mean these are assets that we really want to one control over. And we are doing everything in our power to get control of this asset. It is essentially a client who's decided not to pay rent while operating these assets.

——我只是將其添加到其中，因為我們正在談論信用，讓我分享更多。我的意思是，這些才是我們真正想要控制的資產。我們正在盡一切努力控制這項資產。本質上是客戶決定在營運這些資產時不支付租金。

And we -- given the work that the asset management team has done, we already have a tremendous amount of interest in these assets, which are primarily located in Texas. And so we feel very confident about being able to replace the rent, which is not significant in this case. The actual cash rent that is very quickly once we gain control.

鑑於資產管理團隊所做的工作，我們已經對這些資產產生了巨大的興趣，這些資產主要位於德克薩斯州。因此，我們對能夠替代租金非常有信心，在這種情況下這並不重要。一旦我們獲得控制權，實際的現金租金就會很快增加。

So that's this convenience store operator. But while we are on the topic of credit, I want to walk you through some of what has dominated the conversations over the last few quarters. Red Lobster has emerged from bankruptcy and just hired a CEO. They've hired a Chief Marketing Officer. They've got a new CFO. Let me close the storyline on that. We had 216 assets, prebankruptcy. nine assets were rejected through bankruptcy. We had a 91% recapture rate on that particular name.

這就是這個便利商店經營者。但是，當我們討論信貸話題時，我想向您介紹一些過去幾季主導對話的內容。紅龍蝦已經擺脫破產困境，剛剛聘請了一位執行長。他們聘請了一位首席行銷長。他們有了一位新的財務長。讓我結束故事情節。我們破產前有 216 項資產。九項資產因破產而被拒絕。我們對該特定名稱的重新捕獲率為 91%。

Rite Aid. We have 29 locations today. We had an 88% recapture rate on Rite Aid, which is now emerged from bankruptcy and is an ongoing concern.

儀式援助。今天我們有 29 個地點。我們對 Rite Aid 的回收率達到了 88%，該公司現在已經擺脫破產，並且是一個持續存在的問題。

Regal, where we have 35 assets today and an 85% recapture rate and it has emerged from bankruptcy. So those are the story lines that have dominated multiple quarters of conversations, and this is the end result of all of those conversations.

Regal 目前擁有 35 項資產，回收率為 85%，並且已經擺脫破產困境。這些是主導多個季度對話的故事情節，這也是所有這些對話的最終結果。

Let's talk about Walgreens. Everybody is concerned about what used to be a 2,000 store closings, which has now been reduced to 1,500. Year-to-date, we've had 13 Walgreens come up for renewal. They had lease maturity. All 13 were renewed by Walgreens. In our history of 55 renewals with Walgreens, we've had a recapture rate of over 100%.

我們來談談沃爾格林。每個人都擔心以前有 2000 家商店倒閉，現在已經減少到 1500 家。今年迄今為止，我們已經有 13 家沃爾格林需要續約。他們的租賃到期了。所有 13 件產品均由沃爾格林 (Walgreens) 續簽。在我們與沃爾格林 55 次續約的歷史中，我們的重新獲得率超過 100%。

Let's throw CVS in that mix. We've had 40 leases renew with CVS in our history at over 102% renewal. Let's talk about Family Dollar, Dollar Tree. We've had 135 lease renewals with Family Dollar Dollar Tree in our history at over 108% renewal rate. Dollar General is a similar story.

讓我們將 CVS 加入其中。歷史上，我們已透過 CVS 續約了 40 份租約，續約率超過 102%。我們來談談家庭美元、美元樹。歷史上，我們已經與 Family Dollar Dollar Tree 續約了 135 次，續約率超過 108%。 Dollar General 也有類似的故事。

So I just asked that what we see in the headlines don't necessarily translate to what is happening on the ground for our portfolio. And that's the emphasis I want to make is that we are very selective and the data proves that out to be the case. Go ahead, Smedes. Sorry, I cut you off.

所以我只是問，我們在頭條新聞中看到的內容並不一定能轉化為我們投資組合實際發生的情況。我想強調的是，我們是非常有選擇性的，數據證明情況確實如此。繼續吧，斯梅德斯。抱歉，我打斷了你。

No. I mean I appreciate the detail is understood. But of course, as we see these headlines, we have to ask about them, right? I mean that's the nature of the business. I wanted to ask you on the -- just going back to the fund for a moment. You -- I think it was asked previously, but I don't think I heard the answer. Just do you have a sense of kind of what the scope of the fund would be?

不，我的意思是我很欣賞細節被理解。但當然，當我們看到這些頭條新聞時，我們必須問他們，對吧？我的意思是這就是業務的本質。我想問你關於基金的問題。你——我想以前有人問過這個問題，但我想我沒有聽到答案。您是否了解該基金的範圍？

And are we talking maybe $1 billion to start? Or would you see it in several billions? Or kind of how do you think about the size of the fund, I guess, initially and maybe how it might grow over time?

我們所說的啟動資金可能是 10 億美元嗎？或者你會看到幾十億嗎？或者我想，您最初如何看待基金的規模，以及隨著時間的推移，它可能會如何成長？

Yes. It's too early to tell. We obviously believe in our pieces. We believe in what we are doing. We believe it's -- the benefits of what we are doing is going to accrue to our public shareholders, but it is too early Smedes me to opine on how big this could potentially become.

是的。現在說還太早。我們顯然相信我們的作品。我們相信我們正在做的事情。我們相信，我們正在做的事情將為我們的公眾股東帶來好處，但我現在就評論這件事可能會變得有多大還為時過早。

Jay Kornreich, SMBC.

傑·科恩瑞奇，SMBC。

I was wondering if you can comment on kind of the opportunities that you're currently seeing in Europe. And as you see things today, are you looking into exploring into new territories and do you expect that acquisition opportunity in Europe to continue to outpace the US.

我想知道您是否可以評論一下您目前在歐洲看到的機會。正如您今天所看到的，您是否正在考慮探索新的領域，您是否預計歐洲的收購機會將繼續超過美國。

That's a great question, Jay, given what we've done in the quarters, it is a legitimate question. Yes, 56% of what we've done year-to-date has been in Europe, but we view that as an advantage that's precisely the reason why we created all of these growth verticals to be able to take advantage of wherever the best opportunities reside. And Europe is where we found that to be the case for the first three quarters. I believe the momentum in Europe will continue. We are seeing very good opportunities in Europe.

這是一個很好的問題，傑伊，考慮到我們在這些季度所做的事情，這是一個合理的問題。是的，我們今年迄今為止所做的工作有 56% 是在歐洲，但我們認為這是一種優勢，這正是我們創建所有這些增長垂直領域的原因，以便能夠利用最好的機會居住。我們發現歐洲前三個季度的情況就是如此。我相信歐洲的勢頭將會持續下去。我們在歐洲看到了非常好的機會。

And yes, our ability to go beyond our current geography, by geography, I mean, countries in Europe is also something that we are constantly looking. And so for the right opportunity, there are several countries that we don't happen to be in that we would consider going into with the right client and with the right opportunity.

是的，我們超越目前地理位置的能力，我的意思是，歐洲國家的地理位置也是我們不斷尋找的。因此，對於合適的機會，有幾個我們碰巧沒有進入的國家，我們會考慮與合適的客戶和合適的機會一起進入。

--- Jay had asked about the future as well. And so the $1.3 billion that's expected in the fourth quarter, I want to close a loop on that. The momentum that I had referenced was the momentum that we are seeing here in the US.

——傑伊也問過未來的事。因此，我希望在第四季實現 13 億美元的預期閉環。我提到的勢頭是我們在美國看到的勢頭。

In Europe, the momentum has continued. It's been there at the beginning of the year. That momentum has continued, but it's in the fourth quarter that you will see it reverting back to more historical norms in terms of US versus international.

在歐洲，這股勢頭仍在持續。今年年初就已經出現了。這種勢頭仍在繼續，但到了第四季度，你會看到美國與國際的情況恢復到更歷史的常態。

Haendel St. Juste, Mizuho.

亨德爾‧聖朱斯特，瑞穗。

Sumit, I wanted to go back to the fund one more time. There appears to be a long list of benefits that you mentioned already, but I'm also thinking that there could be a long-term benefit of allowing you at some point to potentially generate mid-single-digit AFFO growth, your long-term kind of core growth target without the need for sizable annual equity raises when you think about your existing rent bumps and the reinvestment of your free cash flow. So I guess, first, is that fair? And then maybe some color on if you'd look to fund it with existing assets within your portfolio and what that mix could look like?

蘇米特，我想再次回到基金。您已經提到了一長串好處，但我也認為，允許您在某個時候實現中個位數 AFFO 增長可能會帶來長期好處，即您的長期收益當您考慮現有的租金上漲和自由現金流的再投資時，您可以實現這種核心成長目標，而無需每年大幅增加股本。所以我想，首先，這公平嗎？然後，如果您希望用投資組合中的現有資產為其提供資金，那麼可能會有一些色彩，以及這種組合會是什麼樣子？

That's a very good question, Haendel. Thank you. And you're right. I mean, the idea here is we get into this business to expand the investable universe for ourselves and for the fund while making sure that we adhere to the return expectations of all parties concerned.

這是一個非常好的問題，韓德爾。謝謝。你是對的。我的意思是，這裡的想法是，我們進入這項業務是為了擴大我們自己和基金的可投資範圍，同時確保我們遵守所有相關方的回報預期。

Look, it's a mathematical fact that it's not an issue today, but 10 years from now, at the rate we are growing, if we continue to rely on just the public markets to finance our growth, we're going to run up into capacity issues. I don't believe that the public markets are, especially the fund business in the public markets are growing at the same level that we have expectations of growing as a public entity.

看，這是一個數學事實，今天這不是問題，但從現在起 10 年後，按照我們的成長速度，如果我們繼續僅依靠公開市場為我們的成長提供資金，我們的產能就會耗盡問題。我不認為公開市場，特別是公開市場的基金業務的成長水準與我們作為公共實體的預期成長水準不符。

And so it is not a dearth of opportunities that is driving this desire to get into the fund business. it is making sure that this complementary source of equity capital will help us monetize our platform and create a business that will then allow us to continue the momentum that we have shown over the last 55 years, 30 of which has been as a public entity. That is the goal of what we are trying to do.

因此，推動進入基金業務的願望並不是缺乏機會。它確保這種補充性的股權資本來源將幫助我們將我們的平台貨幣化並創建一項業務，從而使我們能夠繼續我們在過去 55 年中所表現出的勢頭，其中 30 年是作為公共實體。這就是我們正在努力做的目標。

And outside of the initial call it, seating of this fund, which, by the way, that portfolio will look and feel very similar to what Realty income looks like. And at the appropriate time, all of that will get disclosed, is a way to attract capital and start our business. But subsequently, it will be new transactions that they participate in, either alongside us or it will be on balance sheet for the public entity. That's how the business is going to function.

除了最初的稱呼之外，該基金的席位，順便說一句，該投資組合的外觀和感覺與房地產收入非常相似。在適當的時候，所有這些都將被披露，這是吸引資本和開展業務的一種方式。但隨後，他們將參與新的交易，要麼與我們一起參與，要麼將出現在公共實體的資產負債表上。這就是企業的運作方式。

No, that's incremental. I appreciate that. And one more, and I'm not sure if you answered it, but I didn't quite catch if the pipeline for the fourth quarter, if you expect the cap rates to be comparable or lower? And then just thinking about the uptick in volume into the fourth quarter, if that's an appropriate run rate to think about into next year?

不，這是增量的。我很欣賞這一點。還有一個，我不確定你是否回答了這個問題，但我不太明白第四季度的管道情況，你是否預計資本化率會相當或更低？然後想想第四季銷售的成長，這是否是明年考慮的合適運行速度？

Yes. Haendel, I'm not going to opine on cap rates, et cetera, because things can move around quite a bit. But what I will tell you is that the spread that we are going to make will be -- will continue to be healthy and will continue to be north of our historical spreads. That you can take a fair amount of confidence.

是的。亨德爾，我不會對上限利率等發表意見，因為事情可能會發生很大的變化。但我要告訴你的是，我們將要實現的利差將繼續保持健康，並將繼續高於我們的歷史利差。您可以充滿信心。

And the other piece I'll leave you with Haendel is we have already prefunded our need for the fourth quarter. So there is no reliance on the public markets to help fund this $1.3 billion that we are planning on doing in the fourth quarter. Hopefully, that helps.

我要留給亨德爾的另一件事是我們已經為第四季度的需求預先提供了資金。因此，我們計劃在第四季籌集的 13 億美元資金並不依賴公開市場。希望這會有所幫助。

Spencer Allaway, Green Street Advisors.

史賓塞‧阿拉維，格林街顧問公司。

One more on the private fund. Can you maybe just talk about how time will be spent just in terms of underwriting deals and opportunities for the team in general, but also for you, Sumit. And then I know you commented on economies of scale around our data and data analytics. But just curious if you foresee any changes to headcount or to the investment process just in the early stages of that launch?

再談一談私募基金。您能否談談如何花時間為整個團隊以及您，Sumit 提供承保交易和機會。然後我知道您對我們的數據和數據分析的規模經濟發表了評論。但只是好奇您是否預見到在該發布的早期階段員工數量或投資流程會發生任何變化？

That's a great question, Spencer, because it really goes to the heart of when I say we're going to scale -- use our scale as a company that we are today to mitigate what would be an insurmountable cost for a start-up to stop this business. We have 465 people in the business. We already have a fully staffed investment arm, both here in the US as well as in the UK and in Amsterdam, taking care of our international business. So we don't see any need or any incremental personnel on the investment side. That's scale benefit, number one.

史賓塞，這是一個很好的問題，因為當我說我們要擴大規模時，它確實觸及了核心——利用我們今天作為一家公司的規模來減輕新創公司難以克服的成本。 。我們有 465 位業務人員。我們在美國、英國和阿姆斯特丹已經擁有一個人員齊全的投資部門，負責我們的國際業務。因此，我們在投資方面看不到任何需求或任何增量人員。這是規模效益，第一。

Scale benefit number two. We are going to be agnostic as to whether these assets are held in a fund, which, by the way, the public entity will have a fairly large interest in or whether it is on balance sheet. And thus, our asset management team that has done a superb job on the public side, both here in the US as well as in the international markets in London, they will continue to manage these assets. That's benefit number two.

規模效益位居第二。我們將不知道這些資產是否由基金持有，順便說一句，公共實體將在基金中擁有相當大的權益，或是否在資產負債表上。因此，我們的資產管理團隊在公共方面做得非常出色，無論是在美國還是倫敦的國際市場，他們將繼續管理這些資產。這是第二個好處。

Any dispositions, any elements of that, we already have the team here. We have a very large legal team that we are going to leverage that obviously is a massive source of pride for us given that we do a majority of the work in-house. We will continue to lean on them to help with transaction negotiations, lease negotiations, et cetera. That scale benefits, number three.

任何配置、任何元素，我們都已經擁有團隊了。我們擁有一支非常龐大的法律團隊，我們將利用這個團隊，鑑於我們大部分工作都是在內部完成的，這顯然是我們自豪的一個巨大來源。我們將繼續依靠他們來幫助進行交易談判、租賃談判等。第三，規模優勢。

We already have the setup in place -- and so we are not going to be needing new people to help do the block and tackle work that is required of an investment arm, where we will have incremental cost will be around a fund manager and the reporting as well as an IR function that will be dealing with a very specific type of investor base on the private side.

我們已經有了適當的設置，因此我們不需要新人來幫助完成投資部門所需的阻礙和解決工作，我們的增量成本將圍繞基金經理和報告以及投資者關係職能將處理非常特定類型的私人投資者群體。

But outside of that, from accounting finance, which, by the way, is again something we are very proud of, will all be leveraged with the existing platform that we have. That's my comment around the incremental cost in standing this business up will be fairly muted.

但除此之外，從會計財務來看，順便說一句，這又是我們非常自豪的事情，所有這些都將透過我們現有的平台來利用。這是我對維持這項業務的增量成本的評論，這將相當低調。

Very helpful. And then just last one, can you talk about how the competitive landscape is changing? Or if there's been any changes in the US and Europe right now as it relates to the transaction market?

非常有幫助。最後一個，您能談談競爭格局正在發生怎樣的變化嗎？或者目前美國和歐洲在交易市場方面是否有任何變化？

Yes, Spencer, it's the -- it's very fluid in terms of who we are starting to compete against. There is no doubt that private arms are becoming much bigger players in transactions that we are pursuing. And of course, we've had a few more companies in the net lease space that have become public. We don't run into most of them given the types of transactions that we pursue, but it is a crowded field in terms of competition here in the US.

是的，斯賓塞，就我們開始與誰競爭而言，這是非常不穩定的。毫無疑問，私人武器在我們所追求的交易中變得更加重要。當然，我們在淨租賃領域還有一些已經上市的公司。考慮到我們所追求的交易類型，我們不會遇到其中的大多數，但就美國而言，這是一個競爭激烈的領域。

In the international market, it continues to be one of the biggest advantages that we have, where we are running into more competition today than we did, let's call it, a year or two years ago, but we -- but it's still not quite as intense as what we experienced here in the US. And most of that competition comes from private capital in the international market. So that's the flavor of who we compete against in the US and in the international markets.

在國際市場上，它仍然是我們擁有的最大優勢之一，今天我們遇到的競爭比一年或兩年前更多，但我們——但仍然不完全是這樣。一樣激烈。而大部分競爭來自國際市場上的私人資本。這就是我們在美國和國際市場上競爭的對手。

Upal Rana, KeyBanc Capital Markets.

Upal Rana，KeyBanc 資本市場。

Sumit, you talked about the momentum in the transaction market, and but I wanted to kind of get a sense on on have buyers and sellers really reacted to that 50 basis points rate cut and with another 25 basis points cut likely this week and then with the 10 year really driving higher about 65 basis points since the last Fed rate cuts. So I want to get good sense on that.

Sumit，您談到了交易市場的勢頭，但我想了解買家和賣家是否對降息 50 個基點以及本周可能再降息 25 個基點做出了真正的反應自上次美聯儲降息以來，這10 年實際利率確實上漲了約65 個基點。所以我想對此有一個很好的認識。

Yes. I think, Upal, so much of the volatility across the curve at this point is around what will happen today. And it's the largest exogenous factor that's going to determine where the curve settles down. We are not as exposed to the short end of the curve. We are -- but it's not to the same extent as we are to the long end of the curve. And so what's happening on the long end of the curve definitely has an impact on our cost of capital because that becomes a permanent source of financing and our ability to pursue transactions.

是的。我認為，烏帕爾，目前曲線上的大部分波動都與今天將要發生的事情有關。這是決定曲線穩定在何處的最大外生因素。我們並沒有受到曲線短端的影響。我們是——但程度與曲線長端的程度不同。因此，曲線長端發生的事情肯定會對我們的資本成本產生影響，因為這成為永久的融資來源和我們進行交易的能力。

And that is a function of inflation expectations that people have about the future. And if policies are going to get put into place, where the inflation expectation is going to suddenly be much higher than what it had been traditionally, that is going to have an impact on where the tenure is going to settle and that will certainly have an impact either on the positive side or on the negative side for the permanent cost of capital for a net lease business.

這是人們對未來通膨預期的函數。如果政策落實到位，通貨膨脹預期將突然遠高於傳統水平，這將對任期的確定產生影響，這肯定會產生影響。

And those are largely policy driven. We've had parties coming up with proposals that have a diverse set of impacts on this particular inflation expectations. So too early to tell where all of this is going to settle. It is creating a fair amount of volatility, and we are hopeful that regardless of who wins, once we have more clarity in terms of what the curve is going to look like, we'll be able to execute on business as usual.

這些很大程度是政策驅動的。我們已經有各方提出了對這一特定通膨預期產生多種影響的提案。現在判斷這一切將如何解決還為時過早。它造成了相當大的波動性，我們希望，無論誰獲勝，一旦我們對曲線的走向有了更清晰的了解，我們就能夠照常執行業務。

Great. That was helpful. And then last one for me. Going back to the private capital fund. I know you've already listed a bunch of benefits there. But I wanted to get your sense on why now and why this makes sense in today's economic environment. And I know you mentioned capacity could be an issue in the future, but is there anything else that you may have been dealing with that was creating some friction on your end?

偉大的。這很有幫助。然後是我的最後一張。回到私募基金。我知道您已經在那裡列出了很多好處。但我想了解為什麼現在這樣做以及為什麼這在當今的經濟環境中有意義。我知道您提到容量可能會成為未來的一個問題，但是您可能一直在處理的其他問題是否會給您帶來一些摩擦？

Really, Upal, there is nothing that we are seeing either on the credit side. I think I went through a pretty detailed list to share with you that on the credit side, we feel very good. Our credit watch list actually came down by 10 basis points to 4.2%. And from the previous quarter. So we feel very good on the credit side. We feel very good on the health of the market to precipitate transactions setting aside what's happened over the last couple of weeks, but that too shall pass is our expectation.

真的，烏帕爾，我們在信用方面沒有看到任何東西。我想我透過了一份非常詳細的清單來與大家分享，從信用方面來看，我們感覺非常好。我們的信用觀察名單實際上下降了 10 個基點至 4.2%。從上一季開始。所以我們在信貸方面感覺非常好。拋開過去幾週發生的事情不談，我們對市場的健康狀況感到非常滿意，能夠促進交易，但我們預計這也會過去。

Really, the timing is around to do this right, which obviously is our collective desire. We want to do this very slowly and we want to do it very thoughtfully and it's going to take a long time, a long time for this to become a mature business. I mean look at one of our peers who has probably one of the most successful open-ended fund businesses, and that's Prologis. And they've been in that business for 20 plus years.

確實，現在是時候正確地做到這一點了，這顯然是我們的集體願望。我們希望非常緩慢地做到這一點，我們希望非常深思熟慮地做到這一點，這將需要很長一段時間才能成為一項成熟的業務。我的意思是看看我們的同行之一，他可能是最成功的開放式基金業務之一，那就是普洛斯。他們從事這個行業已有 20 多年了。

And today, it has become -- we can step back and say it is a super successful business that some very smart people went into 20 years ago. And so in anticipation of what could happen 10 years from now, et cetera, when we start to run up against this, our desire to put out capital and perhaps the limits of just accessing the capital sources that we have today, that could become more acute.

今天，它已經成為——我們可以退一步說，這是一個超級成功的企業，一些非常聰明的人在 20 年前就進入了這個行業。因此，考慮到10 年後可能發生的情況，等等，當我們開始遇到這種情況時，我們投入資本的願望以及可能僅僅獲得我們今天擁有的資本來源的限制，這可能會變得更加困難。

And so we have to start today to build this history and to build this fun business to a point where it really starts to bear fruit for our public shareholders et cetera. And that's it. That's why we are doing it today. There is no -- there is -- it doesn't matter at which point in the cycle we would have done this, that question would and should be asked, but it's really about starting now when we don't have a need for additional capital and building this business to get ahead of what could be a limiting factor multiple years down the road.

因此，我們必須從今天開始，創造這段歷史，並建立這個有趣的業務，直到它真正開始為我們的公眾股東等帶來成果。就是這樣。這就是我們今天這樣做的原因。沒有——有——我們在周期的哪個點做這件事並不重要，這個問題將會而且應該被問到，但實際上是從現在開始，當我們不需要額外的時候資本並建立這項業務，以領先未來幾年可能成為限制因素的因素。

Linda Tsai, Jefferies.

琳達·蔡，杰弗里斯。

Just a few quick ones. Can you give us an update on where 2024 bad debt year-to-date has trended? And what's your outlook for '25?

就幾個快速的。您能否向我們介紹 2024 年年初至今壞帳趨勢的最新情況？您對 25 年的前景有何看法？

Yes. So Linda, if you look at the earnings release, first nine months of this year, we've incurred about [$6 million] in bad debt expense. That's around 40 basis points of our rental revenue. When you take out this one C-store operator that we referenced earlier. You're really looking at sub-20 basis points on 18 basis points. We've talked historically about how when you exclude the pandemic, we've been right there around 25 basis points of credit loss in a given year as a percentage of revenue. So to be at 18 outside of this onetime unusual events, we think is pretty indicative of a very constructive and healthy portfolio.

是的。琳達，如果你看看今年前九個月的收益報告，我們已經產生了大約 [600 萬美元] 的壞帳費用。這相當於我們租金收入的 40 個基點左右。當你取出我們之前提到的這家便利商店經營者。你實際上正在考慮 18 個基點的基礎上低於 20 個基點。我們歷史上曾討論過，如果排除大流行病，我們在某一年的信貸損失佔收入的百分比約為 25 個基點。因此，在這次不尋常的事件之外，達到 18 歲，我們認為這非常表明了一個非常有建設性和健康的投資組合。

And I think we -- as Sumit alluded to earlier, the credit loss was at 4.2%. There's really not a lot out there that we're really monitoring that meaningful. There's no 1%-plus exposure tenants on there. We feel as though those that are on the watch list, we've been monitoring for quite some time. And in some cases, we have very good visibility into the cash flow coverage on these assets. And so we'll get into all of the assumptions that we're baking in for 2025 come February when we release our guidance.

我認為，正如 Sumit 之前提到的，信用損失為 4.2%。我們確實沒有太多真正有意義的監控。那裡沒有 1% 以上的曝光租戶。我們覺得那些在觀察名單上的人，我們已經監視了相當長一段時間了。在某些情況下，我們對這些資產的現金流量覆蓋率有充分的了解。因此，當我們發布指導意見時，我們將在 2025 年 2 月發布指導意見時考慮所有假設。

And then in terms of the C-store write-down in the quarter, what's the potential AFFO impact on earnings? And then what do you think is the recapture rate?

那麼，就本季便利商店減記而言，AFFO 對獲利的潛在影響是什麼？那你認為重新捕獲率是多少？

So in terms of this 1 C-store operator, it's really, I call it $1 million a month or so. And all of that is built in. All of that is built into our guidance. And we'll see where we trend out to in terms of recovery. But as we referenced earlier, we do feel like there could be quite a bit of interest in these assets. So I think the default response that we have to offer up is you look at our historical precedents and being able to get 84%, 85% or recapture of any rent that's been impacted by from bank or credit event.

因此，就這家便利商店營運商而言，我稱之為每月 100 萬美元左右。所有這些都是內建的。我們將看到復甦的趨勢。但正如我們之前提到的，我們確實覺得這些資產可能會有相當多的興趣。因此，我認為我們必須提供的預設回應是，您可以查看我們的歷史先例，並能夠獲得 84%、85% 或收回受銀行或信貸事件影響的任何租金。

Ronald Kamdem, Morgan Stanley

羅納德‧卡姆德姆，摩根士丹利

Just two quick ones back to the fund. I think you talked about some of the investments that the fund would be interesting in the fund where the public equity couldn't do it. I guess my other question is just, is there any other differences in terms of dividend policy in terms of geography, like in the fund go anywhere. And in your mind, is that investor that's going into the fund, is that a completely different investor base that would contemplate the stock? Or is there some overlap?

只有兩個快速回到基金。我認為您談到了該基金會對公共股本無法做到的基金感興趣的一些投資。我想我的另一個問題是，就地理而言，股息政策是否存在其他差異，就像基金去任何地方一樣。在您看來，進入該基金的投資者是否是一個完全不同的會考慮該股票的投資者群體？還是有些重疊？

Yes. Ron, we haven't really done any work on the investor profile, but the comments I made about how much bigger this investable universe is of potential investors to look to invest in real estate through a fund structure is what's so compelling. Is it possible that you have some of these funds that have ambit to invest in public securities and they have a mandate to invest in private direct investments.

是的。羅恩，我們還沒有真正對投資者概況進行任何研究，但我對潛在投資者透過基金結構投資房地產的可投資領域有多大的評論是非常引人注目的。您是否有可能擁有一些有志於投資公共證券並且有權投資私人直接投資的基金？

I'm sure that may be the case. But even those investors will tell you that what they have to invest through a fund structure directly into real estate is multiples of what they have on the security side. So I can't give you a more precise answer than that, but the vast majority, I believe, are going to be investors who don't have the ability to invest in public securities but would like to utilize our platform, work with us and invest in the product that we invest in.

我確信情況可能是這樣。但即使是這些投資者也會告訴你，他們透過基金結構直接投資於房地產的資金是他們在證券方面擁有的資金的數倍。因此，我無法給您比這更準確的答案，但我相信，絕大多數將是沒有能力投資公共證券但願意利用我們的平台、與我們合作的投資者並投資於我們投資的產品。

And outside of that, the strategy is one that I've already touched on. There's not going to be anything new that the fund business is going to be doing that we won't do on balance sheet. Keep in mind that the goal is we will be a a massive co-investor in this fund. And so our interests are going to be perfectly aligned in terms of what it is that we pursue.

除此之外，我已經談到了這個策略。基金業務不會做任何我們不會在資產負債表上做的新事情。請記住，我們的目標是成為該基金的重要聯合投資者。因此，我們的利益將與我們所追求的目標完全一致。

Great. And then my second quick one is just an update on sort of the data center sort of initiatives. Obviously, there's been a lot of data points about demand ramping? Just how are you guys sort of seeing the pipeline in that vertical evolving?

偉大的。然後我的第二個快速的只是對資料中心類計劃的更新。顯然，有很多關於需求成長的數據點？你們如何看待垂直發展中的管道？

Yes. So I won't talk about pipelines, Ronald, but what you've referenced in terms of the demand, we're seeing that in space. And we've been very lucky to be speaking with multiple operators in this space. We see it in terms of what they're showing us regarding the pipeline that they've created we are trying to craft a value proposition that is compelling to these operators.

是的。所以我不會談論管道，羅納德，但你所提到的需求方面，我們在太空中看到了這一點。我們非常幸運能夠與該領域的多個運營商進行交談。我們從他們向我們展示的有關他們創建的管道的內容中看到了這一點，我們正在努力製定一個對這些運營商有吸引力的價值主張。

And we are very optimistic about where this particular business could go for realty income going forward. We feel like we can be a solution that helps meet some of the demand and the capital needs to execute on what is a once in a cycle type situation.

我們對這特定業務未來的不動產收入走向非常樂觀。我們覺得我們可以成為一個解決方案，幫助滿足一些需求和資本需求，以執行週期一次的情況。

And at the end of the day, we have capital allocators. And if we can allocate capital exposed to S&P 10, S&P 20 clients for 20 years, that's our core business. And so we are excited, but it's too early to tell in terms of how this is all going to play out.

最終，我們有了資本配置者。如果我們能夠將資本配置給標準普爾 10 指數、標準普爾 20 指數客戶 20 年，那就是我們的核心業務。所以我們很興奮，但現在判斷這一切將如何發展還為時過早。

R.J. Milligan, Raymond James.

R.J.米利根，雷蒙德詹姆斯。

So I wanted to ask a couple more questions on the funds, given those examples of some of the transactions that might be more appropriate there, has been helpful. And I just just wanted to be clear, do you expect the fund to invest in properties that might not necessarily have triple net leases and therefore, have better internal growth or more structured investments, development loans. So I'm just trying to get an idea of what the mix is or if it's going to be pure triple net.

因此，我想再問幾個有關基金的問題，因為一些交易的例子可能更適合那裡，這很有幫助。我只是想澄清一下，您是否期望該基金投資於可能不一定具有三重淨租賃並因此具有更好的內部增長或更結構化的投資、開發貸款的房產。所以我只是想了解一下混合是什麼，或者它是否是純粹的三網。

RJ, what I'll share with you is you should think of these investments in terms of flow-through, rental income flowing through to NOI to be very similar to what we've done on balance sheet, right? The idea is not to go and start executing on businesses that have a 40% NOI margin. That's not what we do.

RJ，我要與您分享的是，您應該從流經、流向 NOI 的租金收入的角度來看待這些投資，與我們在資產負債表上所做的非常相似，對嗎？我們的想法並不是開始執行 NOI 利潤率為 40% 的企業。那不是我們做的。

And so when we talk about data centers, we are not going to be going out there and buying colocation sites where the flow-through is very different versus hyperscale single-tenant 20-year leases that may not be precisely triple net, but the flow-through is still incredibly high, i.e. mimicking what a triple net asset should be generated. That's really the -- what we are going to be doing.

因此，當我們談論資料中心時，我們不會去那裡購買流量與超大規模單租戶 20 年租賃有很大不同的託管站點，後者可能不完全是三網，但流量-通過率仍然高得令人難以置信，即模仿應產生的三重淨資產。這確實是我們要做的事情。

Okay. And then two quick follow-ups, and I may have missed the answers. But number one, do you expect the cost of equity to be higher or lower than Realty's.

好的。然後兩次快速跟進，我可能錯過了答案。但第一，您預期股權成本會高於或低於房地產成本。

So the cost of equity as defined by long-term return hurdles should be very similar, but their focus is on the long-term hurdle rate, not on day one accretion. And that's the big difference, RJ. That's why I gave the examples that I did that the return profile long term is very similar for both of these businesses. But we, as a public entity, 100% public entity, today cannot meet our dual mandate of generating that year one spread and the long-term hurdle rate.

因此，由長期回報障礙定義的股本成本應該非常相似，但它們的重點是長期回報率，而不是第一天的成長。這就是最大的區別，RJ。這就是為什麼我給出的例子表明，這兩家企業的長期回報情況非常相似。但我們，作為一個公共實體，100%的公共實體，今天無法滿足我們產生當年利差和長期最低門檻利率的雙重使命。

Both those have to be met in order for us to pursue transactions in the public markets today. That's how we are valued, and we are very grateful for that. We understand that that's how -- that's the game we have to play.

為了讓我們今天能夠在公開市場上進行交易，這兩個條件都必須滿足。這就是我們的價值所在，我們對此非常感激。我們知道這就是我們必須玩的遊戲。

But there are assets that we are passing up on very high-quality assets that can meet the long-term hurdle, but will potentially have a much lower starting point. And that, I think, is what we'll be able to do through this fund structure and enhance our co-investment through the recurring asset management fee stream, which is essentially the monetization of the platform that we have, to the benefit of our public shareholders. That's how this will work.

但我們正在放棄一些非常優質的資產，這些資產可以應對長期障礙，但起點可能要低得多。我認為，這就是我們能夠透過這種基金結構做到的事情，並透過經常性資產管理費用流加強我們的共同投資，這本質上是我們擁有的平台的貨幣化，以造福於我們的利益。公眾股東。這就是它的運作方式。

Okay. And one last follow-up is, will Realty Income be contributing properties to the fund?

好的。最後一個後續問題是，房地​​產收入是否會向該基金貢獻財產？

There will be a seat portfolio that will allow us to have conversations with potential investors. But thereafter, it will be new investments that we pursue. That's how we're thinking about it today. So outside of that initial seed portfolio, everything else will be new transactions that we'll be pursuing.

將有一個席位組合，使我們能夠與潛在投資者進行對話。但此後，我們將尋求新的投資。這就是我們今天的思考方式。因此，除了最初的種子投資組合之外，其他一切都將是我們將追求的新交易。

Greg McGinniss, Scotiabank.

格雷格·麥金尼斯，豐業銀行。

Sumit, I just want to follow up on that last question. So you mentioned Prologis, right? And I think that's where the contribution question comes from. But -- could you instead maybe envision increasing investment into developments, which may be otherwise you wouldn't have underwritten that would then be contributed to the platform? Or would you instead pursue those developments within the platform itself?

Sumit，我只想跟進最後一個問題。所以你提到了普洛斯，對嗎？我認為這就是貢獻問題的由來。但是，您是否可以設想增加對開發的投資，否則您可能不會承保然後將其貢獻給平台？或者您會在平臺本身內追求這些開發？

Greg, that's a very good question because when we pursue development, we do have certain accounting elements that we have to adhere to. And there are times where we are unable to recognize the full cash impact, the positive cash yield that we are able to generate on dollars that we are investing in a development scenario, just given the lease accounting that we have, that's certainly not going to be a prohibitive factor doing it through the fund structure.

格雷格，這是一個非常好的問題，因為當我們追求發展時，我們確實必須遵守某些會計要素。有時，我們無法認識到全部現金影響，即我們在開發場景中投資的美元能夠產生的正現金收益，僅考慮到我們擁有的租賃會計，這肯定不會成為透過基金結構進行此操作的阻礙因素。

And so could we do more of those? Yes. In the fund -- the answer is yes. But again, it needs to meet and exceed the overall return hurdles that we would need to address. So there are a lot of things that this alternative source of financing could allow us to do, which we have done as a public entity, but only in a limited way because of some of the inherent limitations that we have either in terms of how we can report stuff, et cetera.

那我們可以做更多這樣的事情嗎？是的。在基金中——答案是肯定的。但同樣，它需要滿足並超越我們需要解決的整體回報障礙。因此，這種替代融資來源可以讓我們做很多事情，我們作為公共實體已經做了這些事情，但只能以有限的方式進行，因為我們在如何做方面存在一些固有的限制。事情等等。

So I do think that this will give us the flexibility and thus, the comment I made about expanding the sandbox of the types of transactions that we would be able to pursue by having this alternative source of capital available to us.

因此，我確實認為這將為我們提供靈活性，因此，我對擴大交易類型的沙箱發表評論，我們可以透過提供這種替代資本來源來追求這些交易類型。

And do you already have kind of first investors in mind or conversations that you've had on this front?

您是否已經想到了第一批投資者或在這方面進行過對話？

We have none of that in mind. We have and I think I've talked about this, what is -- the profile of this investor would look like. We certainly have that, and we are working with our advisers who have shared with us what the details are around that, but we haven't had any conversations today.

我們沒有考慮這些。我們已經討論過這個問題，我想我已經討論過這個投資者的概況了。我們當然有這個，我們正在與我們的顧問合作，他們與我們分享了相關細節，但我們今天還沒有進行任何對話。

Okay. And just final follow-up for Jonathan. Is there anything specific to point to in the slight increase in the midpoint to the expense leakage guidance?

好的。這只是喬納森的最後後續行動。費用洩漏指導中點的略微增加有什麼具體的地方可以指出嗎？

Yes. It's a combination of a few things. Greg, First of all, there's been some deferred expenses we brought forward, some that were carried forward from last year. We're just trying to get ahead of spend and trying to catch up in some cases. So there is a little bit of heavier load this quarter.

是的。這是一些事情的組合。格雷格，首先，我們結轉了一些遞延費用，其中一些是從去年結轉的。我們只是試圖領先於支出並在某些情況下努力趕上。所以這個季度的負載有點重。

I would also say for this year, I would also say that there are some carry costs that we are incurring with a few vacant assets that do comprise a bit of an increase on a year-over-year basis from a margin perspective.

我還想說，今年，我們也因一些閒置資產而產生了一些持有成本，從利潤率的角度來看，這些成本確實與去年同期相比有所增加。

And then also, I think when you're just comparing to the 1.1% leakage that we experienced last year, keep in mind we did bring in a $9 billion portfolio in January with the Spirit portfolio. And that did have slightly more leakage as well just on a run rate basis. So I would really attribute it to those factors as what's driving the slight increase going from 1.1%and now to a midpoint of 1.35%.

另外，我認為當你只是與我們去年經歷的 1.1% 的洩漏進行比較時，請記住，我們確實在一月份通過 Spirit 投資組合引入了 90 億美元的投資組合。僅從運轉率來看，洩漏確實也稍多。因此，我確實將其歸因於這些因素，因為這些因素推動了成長率從 1.1% 到現在的中點 1.35%。

Wes Golladay, Baird.

韋斯·戈拉戴，貝爾德。

I just want to have a question on the development pipeline. When do you expect the non-retail to lease up? Are you holding back leasing on that right now?

我只是想問一個關於開發流程的問題。您預計非零售業什麼時候可以出租？您現在正在抑制租賃嗎？

Yes, that's a great question, Wes. Look, it's a very small portion of the overall development. I think it's like 15%-plus, minus in that ZIP code. And even though the quantum that we have identified for this particular type of development, we really don't spend until we get clarity on the leases coming through. And so we feel very confident.

是的，這是一個很好的問題，韋斯。看，這只是整體開發的一小部分。我認為郵遞區號大約是 15% 加減。儘管我們已經為這種特定類型的開發確定了金額，但在我們明確租賃情況之前，我們實際上不會花錢。所以我們非常有信心。

We are partnering with one of the best developers in [Panattoni] and we feel very confident that some of these are going to get leased up in the near term. And keep in mind, we won't make the big capital investment without having line of sight on potential clients being able to step in and take over those leases.

我們正在與[Panattoni]最好的開發商之一合作，我們非常有信心其中一些將在短期內出租。請記住，如果沒有看到潛在客戶能夠介入並接管這些租賃，我們不會進行大量資本投資。

Maybe just a quick follow-up on that, since it's more spec in nature. Are you going to get a little bit more incremental yield?

也許只是對此進行快速跟進，因為它本質上更規範。您會獲得更多的增量收益嗎？

Yes, absolutely. And in fact, in situations where -- we've had two buildings, one was leased and the other one wasn't. We have expectations and what we think the lease rates are going to be and -- so far, more often than not, those lease rates, our expected lease rates have been superseded by what actually ends up happening. So this continues to build a fair amount of confidence in not only our partners, but also our team's ability to underwrite these types of transactions.

是的，絕對是。事實上，在這種情況下——我們有兩棟建築，一棟被出租，另一棟則沒有。我們有預期，也有我們認為的租賃費率——到目前為止，這些租賃費率、我們預期的租賃費率往往已經被實際發生的情況所取代。因此，這不僅讓我們的合作夥伴，而且讓我們的團隊承銷此類交易的能力繼續建立了相當大的信心。

Thank you. And this concludes our question-and-answer session. I'd like to turn the conference back over to Sumit Roy for any closing remarks.

謝謝。我們的問答環節到此結束。我想將會議轉回蘇米特·羅伊 (Sumit Roy) 進行閉幕致辭。

Thank you all for joining us today. We look forward to speaking soon and seeing you at a conference in the coming weeks. Thank you, guys.

感謝大家今天加入我們。我們期待盡快發言並在未來幾週的會議上見到您。謝謝你們，夥計們。

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。