Alpine Income Property Trust Inc (PINE) 2023 Q2 法說會逐字稿

Good day, and welcome to the Alpine Income Property Trust's second-quarter 2023 operating results conference call. (Operator Instructions) As a reminder, this call is being recorded. I would now like to hand the call over to Matt Partridge, Chief Financial Officer. You may begin.

美好的一天，歡迎參加 Alpine Income Property Trust 2023 年第二季度經營業績電話會議。 （操作員說明）謹此提醒，此通話正在錄音。我現在想將電話轉交給首席財務官馬特·帕特里奇（Matt Partridge）。你可以開始了。

Good morning, everyone, and thank you for joining us today for the Alpine Income Property Trust second-quarter 2023 operating results conference call. With me today is our CEO and President, John Albright.

大家早上好，感謝您今天參加我們的 Alpine Income Property Trust 2023 年第二季度經營業績電話會議。今天與我在一起的是我們的首席執行官兼總裁約翰·奧爾布賴特 (John Albright)。

Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no duty to update these statements.

在開始之前，我想提醒大家，根據聯邦證券法，我們今天的許多評論都被視為前瞻性陳述。公司未來的實際結果可能與這些前瞻性陳述中討論的事項存在顯著差異，我們不承擔更新這些陳述的責任。

Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q, and other SEC filings. You can find our SEC reports, earnings release, and most recent investor presentation, which contain reconciliations of non-GAAP financial measures we use on our website at alpinereit.com.

公司的 10-K 表格、10-Q 表格和其他 SEC 文件中會不時更詳細地披露可能導致實際結果與預期產生重大差異的因素和風險。您可以在我們的網站 alpinereit.com 上找到我們的 SEC 報告、收益發布和最新投資者演示，其中包含我們使用的非 GAAP 財務指標的調節表。

I'll now hand the call over to John for his prepared remarks.

我現在將把電話轉交給約翰，讓他準備好講話。

Thanks, Matt, and good morning, everyone. Before I outline our investment activity for the quarter, I want to highlight the progress we've made with our asset recycling strategy and provide some insight into what we're seeing in the transactions market.

謝謝馬特，大家早上好。在概述本季度的投資活動之前，我想強調一下我們在資產回收策略方面取得的進展，並提供一些關於我們在交易市場中看到的情況的見解。

For over a year now, we've focused our attention on asset recycling as a way to take advantage of attractive pricing relative to the rapidly rising interest rate environment, improve the overall quality of our portfolio, bolster our balance sheet, and drive attractive returns on investments. This has been accomplished in spite of the volatile capital markets environment that has been driven in part by an unprecedented rise in interest rates.

一年多來，我們一直將注意力集中在資產回收上，以此來利用相對於快速上升的利率環境的有吸引力的定價，提高我們投資組合的整體質量，加強我們的資產負債表，並帶來有吸引力的回報關於投資。儘管資本市場環境動盪，部分原因是利率史無前例的上升，但這一目標還是實現了。

From the first 25-basis-point federal funds rate increase in March of 2022, we've sold nearly $235 million of properties below a 6.4% cash cap rate, generating gains of $39 million. These asset sales have funded investments above a 7% cash cap rate, of which 78% of acquired rents have been from investment-grade-rated tenants.

自 2022 年 3 月首次將聯邦基金利率上調 25 個基點以來，我們已以低於 6.4% 現金上限的價格出售了近 2.35 億美元的房產，產生了 3900 萬美元的收益。這些資產出售為現金上限高於 7% 的投資提供了資金，其中 78% 的租金來自投資級租戶。

As a result, we've quickly transformed our portfolio by selling our remaining office investment, raising our investment-grade tenant exposure from 48% to 63% in just 12 months, and shifting more of our portfolio into very stable, industry-leading tenants such as Lowe's, Dick's Sporting Goods, Walmart, Dollar Tree/Family Dollar, Best Buy, and Home Depot.

因此，我們迅速改變了我們的投資組合，出售了剩餘的辦公樓投資，在短短12 個月內將我們的投資級租戶敞口從48% 提高到63%，並將更多的投資組合轉移到非常穩定、行業領先的租戶例如 Lowe's、Dick's Sporting Goods、沃爾瑪、Dollar Tree/Family Dollar、百思買和家得寶。

Our accretive net investment spreads and robust gains on sales have allowed us to reduce our leverage from 8.3 times at the end of Q2 2022 to a current 6.4 times at the end of Q2 2023. And I'm pleased to say we have no floating rate, interest-rate exposure, and no debt maturities until 2026. All of this progress, while not reflected in our stock price, has us well-positioned to be opportunistic in the evolving transaction market where we're starting to see more high-quality opportunities, especially from merchant developers.

我們不斷增加的淨投資利差和強勁的銷售收益使我們能夠將槓桿率從2022 年第二季度末的8.3 倍降低到2023 年第二季度末的當前6.4 倍。我很高興地說，我們沒有浮動利率、利率風險，並且在2026 年之前沒有債務到期。所有這些進展雖然沒有反映在我們的股價中，但使我們處於有利地位，可以在不斷發展的交易市場中抓住機會，我們開始看到更多高質量的交易機會，尤其是來自商業開發商的機會。

During the second quarter, we invested more than $60 million at a 6.8% cash cap rate with 85% of the annualized base rent coming from tenants with investment-grade credit ratings. These investments include household names such as Chick-fil-A, Home Depot, Lowe's, Best Buy, Dick's Sporting Goods, Verizon, HomeGoods, Starbucks, and Marshalls.

第二季度，我們以 6.8% 的現金上限投資了超過 6000 萬美元，其中 85% 的年化基本租金來自具有投資級信用評級的租戶。這些投資包括家喻戶曉的品牌，如福來雞、家得寶、Lowe's、百思買、迪克體育用品、Verizon、HomeGoods、星巴克和 Marshalls。

We prioritize investment-grade-rated tenants because of their well-capitalized balance sheet, forward-thinking operating strategies, and outsized financial and operational transparency, while also emphasizing discount in nondiscretionary sectors that should outperform even if there is a broader economic slowdown. Conversely, our disposition efforts have centered around selective tenant and sector concentrations within our portfolio as well as the sale of non-investment-grade-rated tenants.

我們優先考慮投資級租戶，因為它們資本充足的資產負債表、前瞻性的運營策略以及巨大的財務和運營透明度，同時也強調非全權委託行業的折扣，即使出現更廣泛的經濟放緩，這些行業也應該跑贏大盤。相反，我們的處置工作主要集中在我們投資組合中的選擇性租戶和行業集中度以及出售非投資級租戶。

During the quarter, we sold nearly $23 million of properties at a 6.4% cash cap rate. Our Q2 dispositions consisted entirely of non-investment-grade-rated tenants, including two properties leases, Academy Sports. While these Q2 asset sales, we've now sold $79 million of assets year to date at a cash cap rate of 6.2%, generating gains on the sale of $5.2 million.

本季度，我們以 6.4% 的現金上限出售了近 2300 萬美元的房產。我們第二季度的處置完全由非投資級租戶組成，包括兩處房產租賃、Academy Sports。在第二季度資產出售的同時，我們今年迄今已出售了 7900 萬美元的資產，現金上限率為 6.2%，銷售收益為 520 萬美元。

While we're proud of our execution that has taken place over the past 12 months, our focus is adding long-term value for our shareholders. Today, we're evaluating two development loan agreements anchored by industry-leading tenants. These agreements will allow us to put capital to work at yields meaningfully above our year-to-date acquisition cap rates and with the potential opportunity to buy assets following the completion of construction.

雖然我們對過去 12 個月的執行力感到自豪，但我們的重點是為股東增加長期價值。今天，我們正在評估兩項由行業領先租戶簽署的開發貸款協議。這些協議將使我們能夠以明顯高於我們今年迄今為止的收購上限的收益率投入資本，並有可能在建設完成後購買資產。

Additionally, in an effort to address the public-to-private disconnect in our stock price, our Board has approved an expanded share repurchase program up to $15 million. There are no guarantees we'll be active on the program. But as our stock price sits near an 8% cash cap rate, it's hard to justify the underlying discount, especially relative to our investment-grade-focused peers.

此外，為了解決我們股價中公私部門之間的脫節問題，我們的董事會已批准擴大股票回購計劃，金額高達 1500 萬美元。無法保證我們會積極參與該計劃。但由於我們的股價接近 8% 的現金上限，因此很難證明潛在的折扣是合理的，特別是相對於我們以投資級為重點的同行而言。

With that, I'll now turn the call over to Matt to discuss our quarterly results, balance sheet, and revised guidance.

現在，我將把電話轉給馬特，討論我們的季度業績、資產負債表和修訂後的指導。

Thanks, John. As of the end of the quarter, portfolio occupancy was 99.5%, and our portfolio consisted of 143 properties totaling 3.9 million square feet with tenants operating in 25 sectors within 34 states. Home Depot replaced Academy Sports in our top 10 tenant list, joining industry-leading operators such as Walgreens, Lowe's, Dick's Sporting Goods, Dollar Tree/Family Dollar, Dollar General, Walmart, Hobby Lobby, and Best Buy.

謝謝，約翰。截至本季度末，投資組合入住率為 99.5%，我們的投資組合由 143 處房產組成，總面積達 390 萬平方英尺，租戶分佈在 34 個州的 25 個部門。家得寶 (Home Depot) 取代 Academy Sports 躋身我們的十大租戶名單，加入了 Walgreens、Lowe's、Dick's Sporting Goods、Dollar Tree/Family Dollar、Dollar General、Walmart、Hobby Lobby 和 Best Buy 等行業領先運營商的行列。

Second-quarter 2023 FFO and AFFO were both $0.37 per share, a $0.1 per share or 21% decrease compared to the second quarter of 2022. Our quarterly results benefited from a 1.4% increase in total revenues, which was largely driven by a positive net investment spread from our asset recycling program.

2023 年第二季度FFO 和AFFO 均為每股0.37 美元，與2022 年第二季度相比，每股收益0.1 美元，下降21%。我們的季度業績受益於總收入增長1.4%，這主要是由正淨收入推動的投資來自我們的資產回收計劃。

As was the case in the first quarter, the positive effects of our asset recycling were partially offset by the revenue drag from our first quarter and second quarter asset sales for which the proceeds were not immediately reinvested as well as the year-over-year negative reinvestment spread that resulted from the sale of our sole remaining office property that occurred in the second quarter of 2022.

與第一季度的情況一樣，我們的資產回收的積極影響部分被我們第一季度和第二季度資產銷售的收入拖累所抵消，這些資產銷售的收益沒有立即再投資，以及同比的負面影響再投資利差是由於2022 年第二季度出售我們唯一剩餘的辦公物業而產生的。

General and administrative expenses for the quarter increased 12%, largely driven by the management fees paid to our external manager, which increased as a result of our equity issuance activity over the past 12 months. The current annual run rate for the management fee before any assumed new equity issuance or repurchases is $4.4 million.

本季度的一般和管理費用增長了 12%，主要是由於支付給外部經理的管理費所致，而管理費因過去 12 個月的股票發行活動而增加。在任何假設的新股發行或回購之前，目前管理費的年運行率為 440 萬美元。

Additionally, higher interest expense resulting from higher interest rates contributed to the decrease in FFO and AFFO per share but was partially offset by an overall lower outstanding debt balance. Year to date, FFO was $0.72 per share and AFFO was $0.73 per share, representing year-over-year per-share decrease of 25.8% and 23.2%, respectively, when compared to the first six months of 2022.

此外，利率上升導致利息支出增加，導致每股 FFO 和 AFFO 減少，但部分被未償債務餘額總體下降所抵消。今年迄今，FFO 為每股 0.72 美元，AFFO 為每股 0.73 美元，與 2022 年前六個月相比，每股同比分別下降 25.8% 和 23.2%。

For the second quarter of 2023, the company paid a cash dividend of $0.275 per share, representing a 1.9% year-over-year increase over the company's Q2 2022 cash dividend and a current annualized yield of nearly 7%. Second quarter FFO and AFFO payout ratios were both 74%.

2023年第二季度，公司支付了每股0.275美元的現金股息，較公司2022年第二季度現金股息同比增長1.9%，當前年化收益率接近7%。第二季度 FFO 和 AFFO 派息率為 74%。

During the quarter, we repurchased nearly 24,000 shares of common stock on the open market under the previously authorized $5 million share repurchase program for a total cost of $400,000 at an average price of $15.22 per share. The previously instituted $5 million share repurchase program was replaced with the newly authorized 1$5 million share repurchase program John previously referenced.

本季度，我們根據先前授權的 500 萬美元股票回購計劃，在公開市場上回購了近 24,000 股普通股，總成本為 400,000 美元，平均價格為每股 15.22 美元。之前製定的 500 萬美元股票回購計劃被約翰之前提到的新授權的 100 萬美元股票回購計劃所取代。

We ended the quarter with net debt to total enterprise value of 46%, net debt to pro forma EBITDA of 6.4 times; and we continue to maintain a strong fixed charge coverage ratio of 3.3 times. And as previously referenced, we have no floating interest rate exposure, no debt maturities until 2026, and total liquidity at quarter end is more than $225 million.

本季度末，我們的淨債務佔企業總價值的 46%，淨債務佔預計 EBITDA 的 6.4 倍；我們繼續保持 3.3 倍的強勁固定費用覆蓋率。正如之前提到的，我們沒有浮動利率風險，2026 年之前沒有債務到期，季度末的總流動性超過 2.25 億美元。

We began the third quarter with portfolio-wide in-place annualized straight-line base rent of $39.7 million or $39.3 million of in-place annualized cash base rents. In consideration of the timing of dispositions and acquisitions in 2023 and higher-than-forecasted equity drag from increased asset sales, we've revised our 2023 guidance. We have reduced the top end of our full-year FFO and FFO guidance ranges by $0.02 per share, respectively, resulting in revised FFO and FFO per-share guidance ranges of $1.50 to $1.53 per share and $1.52 to $1.55 per share, respectively.

第三季度伊始，我們整個投資組合的就地年化直線基本租金為 3970 萬美元，或就地年化現金基本租金為 3930 萬美元。考慮到 2023 年處置和收購的時機以及資產銷售增加對股本的拖累高於預期，我們修訂了 2023 年指引。我們將全年 FFO 和 FFO 指導範圍的上限分別降低了每股 0.02 美元，從而將 FFO 和 FFO 每股指導範圍修訂後分別為每股 1.50 美元至 1.53 美元和每股 1.52 美元至 1.55 美元。

The top end of our investments guidance has been revised down by $25 million to a new range of $100 million to $125 million of retail net lease investments. And we've increased the bottom end of our disposition guidance by $25 million to account for increased year-to-date asset sales and revised expectations for dispositions through the balance of the year.

我們的投資指導上限已下調 2500 萬美元，零售淨租賃投資新範圍為 1 億至 1.25 億美元。我們將處置指導的下限增加了 2500 萬美元，以考慮到年初至今資產銷售的增加，並修改了今年剩餘時間的處置預期。

Overall, 2023 has been a year of positive transition for our portfolio and balance sheet. And we head into the back half of the year with more flexibility to drive long-term value and future earnings growth.

總體而言，2023 年是我們的投資組合和資產負債表積極轉型的一年。進入今年下半年，我們將更加靈活地推動長期價值和未來盈利增長。

With that, operator, please open the line for questions.

那麼，接線員，請開通提問線路。

(Operator Instructions) Matthew Erdner, JonesTrading.

（操作員指令）Matthew Erdner，JonesTrading。

Hey, guys. Good morning. Thanks for taking the question. So if the purchase market doesn't develop like you anticipate given the lower guidance, do you think you could end up being net sellers in 2023?

大家好。早安.感謝您提出問題。因此，如果考慮到較低的指導，購買市場的發展不如您預期，您認為您最終會在 2023 年成為淨賣家嗎？

No, we're seeing -- we're definitely seeing more opportunity now. A lot of it is being driven by the constraint in the debt market. So I think we're pretty optimistic we'll find some good acquisitions here for the rest of the year.

不，我們看到——我們現在肯定看到了更多的機會。其中很大一部分是由債務市場的限制推動的。因此，我認為我們非常樂觀，我們會在今年剩餘時間內在這裡找到一些不錯的收購。

Got you. And then how are you viewing new acquisitions or share repurchases at the moment?

明白你了。那麼您目前如何看待新的收購或股票回購？

Well, certainly, where our stock is trading, we're not seeing as good opportunity of buying our own stock. So if you look at our book value per share, now, we're at $19.30 per share, trading at an 8% implied cap rate. So lots of reasons to be very interested in buying -- repurchasing shares versus just buying some regular way asset. That being said, we are being picky on what we're acquiring, and we're finding good opportunities.

嗯，當然，在我們的股票交易的地方，我們並沒有看到購買我們自己股票的好機會。因此，如果你看看我們的每股賬面價值，現在我們的股價為每股 19.30 美元，隱含上限率為 8%。因此，有很多理由對購買非常感興趣——回購股票而不是僅僅購買一些常規資產。話雖這麼說，我們對我們所收購的東西很挑剔，並且我們正在尋找很好的機會。

Awesome. Thank you.

驚人的。謝謝。

Thank you.

謝謝。

Rob Stevenson, Janney Montgomery Scott.

羅布·史蒂文森，珍妮·蒙哥馬利·斯科特。

Looks like --

好像 -

Rob Stevenson --

羅布·史蒂文森——

Hello?

你好？

Hey, Rob. We can hear you. Yes, go ahead.

嘿，羅布。我們能聽到你的聲音。好，去吧。

Sorry. So John, what does the cadence look like from an acquisition disposition standpoint the back half of the year? Are these quarters remaining quarters going to be relatively equal in terms of acquisitions matched by dispositions? Or is it going to wind up being front or backend-loaded on one of those things?

對不起。那麼約翰，從今年下半年收購處置的角度來看，節奏是什麼樣的？這些季度與剩餘季度在收購與處置相匹配方面是否會相對相同？或者它最終會被前端或後端加載到這些東西之一上？

Hey, Rob. It's Matt. I think in Q3, it'll be relatively even, maybe a little bit more weighted towards the disposition side of things. And then in Q4, probably a little bit more on the acquisition relative to dispositions.

嘿，羅布。是馬特。我認為在第三季度，情況會相對均勻，也許會更偏重於處置方面。然後在第四季度，收購相對於處置可能會更多一些。

That being said, part of the reason for the revised guidance is we are selling earlier, and we have more visibility into selling earlier. And so there's a little bit more drag on the earnings because of the timing related to the dispositions versus acquisitions.

話雖這麼說，修訂指導的部分原因是我們提前出售，並且我們對提前出售有更多的了解。因此，由於與處置和收購相關的時間安排，對盈利的拖累會更大一些。

Okay. And when you guys look at the portfolio today, how much of the portfolio is a strong recycle candidate today versus just -- obviously everything's for sale at any point in time. Somebody wants off you a 1% cap rate; I'm sure you'll take it. But I mean, in terms of just the way that you look at the portfolio today, how much of this today is a likely recycle candidate in the next 12 to 18 months versus not?

好的。當你們查看今天的投資組合時，今天的投資組合中有多少是強有力的回收候選者，而顯然所有東西在任何時間點都可以出售。有人想要給你 1% 的上限；我相信你會接受的。但我的意思是，就您今天看待投資組合的方式而言，今天的投資組合中有多少是可能在未來 12 到 18 個月內回收的候選人，而不是？

I mean, we're getting down to obviously a smaller amount of properties for recycling for sure since we've been so active. Having said that, we're being patient. We're just not going to sell to sell. We want -- we have particular price points and so forth. And as 1031 buyers are in the market, and they can't find something to buy, we're out there trying to take advantage of that. So we're -- not an incredible amount, but enough to keep us busy.

我的意思是，自從我們如此積極以來，我們肯定會減少回收的財產數量。話雖如此，我們還是保持耐心。我們只是不會為了賣而賣。我們想要——我們有特定的價格點等等。由於市場上有 1031 名買家，但他們找不到可買的東西，我們正試圖利用這一點。所以我們的數量不是令人難以置信，但足以讓我們忙碌。

And the potential development plays that you talked about on the prepared comments, are those -- what is the sort of timeframe? Is that a 2024 event? Or are these things going to finish up sometime in '23 where you would take possession of them? How's that from a -- how should we be thinking about that from a timing standpoint and the impact on 2023 investment numbers?

您在準備好的評論中談到的潛在發展策略是——時間範圍是多少？那是 2024 年的活動嗎？或者這些東西會在 23 年的某個時候結束，你會擁有它們嗎？從時間的角度來看，我們應該如何考慮這一點以及對 2023 年投資數據的影響？

So the funding will be this year on these particular investment opportunities. Now, whether we end up acquiring the properties depends on a function of their ability to execute a cap rate they think they'll be able to sell at versus where we are a buyer. So we kind of have the last look sort of position on high-quality credits and high-quality locations.

因此，今年的資金將集中在這些特定的投資機會上。現在，我們最終是否收購這些房產取決於他們執行他們認為能夠以我們作為買家的價格出售的上限利率的能力。所以我們對高質量的信用和高質量的地點有最後的看法。

Okay. And then last one for me, Matt, is the dispositions enough to fund the acquisitions for the remainder of '23? Or are you going to need to finance anything? Is that going to be on the line, if it is?

好的。最後一個問題是，馬特，這些處置是否足以為 23 年剩餘時間的收購提供資金？或者你需要融資什麼嗎？如果是的話，那會上線嗎？

No, we -- in guidance, we assumed that we'll be sort of a match funder and that some small amount of share buybacks would be funded by available cash and dispositions. So there'd be no incremental funding off the revolver through the end of the year.

不，我們——在指導中，我們假設我們將成為某種匹配資助者，並且一些少量的股票回購將由可用現金和處置提供資金。因此，到今年年底，左輪手槍不會有增量資金。

Okay. That's helpful. Thank you, guys. Have a good weekend.

好的。這很有幫助。感謝你們。有一個美好的周末。

Thank you, Rob.

謝謝你，羅布。

Thank you. You, too.

謝謝。你也是。

Wesley Golladay, Baird.

韋斯利·戈拉迪，貝爾德。

Hey. Good morning, everyone. Just a quick question on the lowered acquisition volume for the year, is that just clearly a function of the higher cost of capital that you have right now at the moment?

嘿。大家，早安。關於今年收購量下降的一個簡單問題是，這顯然是您目前資本成本較高的結果嗎？

Yeah, Wes. It's purely a function of limited access to equity. And so given the visibility we have on the dispositions front and what we think we can work through by the end of the year, we're sort of solving for acquisition volume related to that.

是的，韋斯。這純粹是因為獲得股權的機會有限。因此，考慮到我們在處置方面的可見性以及我們認為我們可以在今年年底前完成的工作，我們正在解決與此相關的收購量問題。

Okay. And then how do you balance a buyback? I mean, I understand the argument that your stock is clearly cheap versus where you could buy in the private market. But then you also, you need to scale the business and eventually go to internalization at some point, hopefully in the next few years. So how do you balance those dynamics?

好的。那麼如何平衡回購呢？我的意思是，我理解這樣的論點：與在私人市場上可以購買的股票相比，您的股票顯然便宜。但你也需要擴大業務規模，並最終在某個時候實現國際化，希望在未來幾年內實現。那麼如何平衡這些動態呢？

Look, it's a buyback program, obviously, to take advantage of kind of hopefully a moment in time where we're trading versus kind of the value of the company and where the peers are trading. But obviously, we've been active in the last 12 months in issuing equity where it makes sense for us to grow the platform.

看，顯然，這是一個回購計劃，希望能夠利用我們與公司價值以及同行進行交易的時間進行交易。但顯然，在過去 12 個月裡，我們一直在積極發行股票，這對我們發展平台來說是有意義的。

So we're optimistic that as we've improved the value in the portfolio composition of the company that we'll get a little bit of love from the markets in the back half of the year. And so we still expect to be able to grow the platform given what we've done with the portfolio and how we rank with other folks.

因此，我們樂觀地認為，隨著我們提高了公司投資組合構成的價值，我們將在今年下半年得到市場的一點青睞。因此，考慮到我們在產品組合上所做的事情以及我們與其他人的排名，我們仍然希望能夠發展該平台。

Okay. And then can you maybe talk about your Walgreens exposure, any double-digit exposure there? The debt has started to weaken modestly. Still, it's still a solid IG, but just how do you view that risk or your locations within the franchise?

好的。然後你能談談你在沃爾格林的曝光嗎？有兩位數的曝光嗎？債務已開始小幅減弱。儘管如此，它仍然是一個可靠的 IG，但你如何看待這種風險或你在特許經營中的位置？

Yeah. So we clearly look at the locations and make sure they're strong locations. We talked with Walgreens, and we've done a lot of lease extensions with them. And so we'll pare back where it makes sense, or we'll be growing other credits, and Walgreens will move around as a natural kind of progression of the portfolio.

是的。因此，我們會清楚地查看地點並確保它們是有利的地點。我們與沃爾格林進行了交談，並與他們進行了很多租約延期。因此，我們將在有意義的地方削減開支，或者我們將增加其他信貸，沃爾格林將作為投資組合的自然進展而移動。

Okay. Thanks, everyone.

好的。感謝大家。

Thank you.

謝謝。

Barry Oxford, Colliers International.

巴里·牛津，高力國際。

Great. Thanks, guys. Real quick to build off of Rob's question, you guys were talking about match-funding acquisitions and dispositions. Do you guys feel fairly confident that you'll be able to get some sort of spread, i.e., sell at lower cap rates and buy higher cap rates over the next few quarters rather than just making sure this isn't an exercise of running in place?

偉大的。多謝你們。很快就羅布的問題展開，你們正在談論匹配資金收購和處置。你們是否對自己能夠獲得某種利差感到相當有信心，即在接下來的幾個季度以較低的上限利率出售併購買更高的上限利率，而不僅僅是確保這不是一種磨合行為地方？

Yeah, for sure. We certainly wouldn't be doing it if we're just right in place as always. There's always going to be --

耶，當然了。如果我們一如既往地就位，我們當然不會這樣做。總會有——

Right, right. I didn't mean to imply that --

是的是的。我並不是有意暗示——

No, no. No, that's fine.

不，不。不，沒關係。

Yeah.

是的。

No, we're definitely, yeah, looking for this recycling program to not only improve the portfolio but be accretive on the acquisition side.

不，我們肯定是在尋找這個回收計劃，不僅可以改善產品組合，而且可以增加收購方面的收益。

And you feel that's doable as far as what you're seeing in the marketplace?

就您在市場上看到的情況而言，您認為這是可行的嗎？

Yes.

是的。

All right. Thanks, guys.

好的。多謝你們。

Thank you.

謝謝。

Yeah.

是的。

RJ Milligan, Raymond James.

RJ 米利根，雷蒙德·詹姆斯。

Hey, guys. Good morning. Just wanted to follow up on Wes's question. Just thinking about leverage, leverage has come down considerably over the past 18 months. And thinking about how do you, guys, weigh buying back shares versus now you have leverage within your targeted range?

大家好。早安.只是想跟進韋斯的問題。僅考慮槓桿率，過去 18 個月槓桿率已大幅下降。想想你們，伙計們，如何權衡回購股票與現在您在目標範圍內的槓桿作用？

Yeah. I think for us buying back shares has a sort of double benefit, right? Because we're trading at a material discount to NAV and, to John's point, an implied cap rate that's significantly wide of private market values. But it also reduces the G&A load from the management fee, and so there's sort of a double benefit there.

是的。我認為對我們來說回購股票有雙重好處，對嗎？因為我們的交易價格比資產淨值有實質性折扣，而且按照約翰的觀點，隱含資本化率明顯超出私人市場價值。但它也減少了管理費的一般行政費用負擔，因此有雙重好處。

So I think everybody should expect that we'll stay below that seven times net debt to EBITDA. And the share buyback program, while it will be opportunistic, it's not going to be a material levering up event just to take advantage of what's happening in the market.

因此，我認為每個人都應該預期我們將保持在 EBITDA 淨債務的七倍以下。股票回購計劃雖然是機會主義的，但它不會成為僅僅為了利用市場正在發生的事情而進行的重大槓桿化事件。

Got it. Thanks, Matt. And then, John, just I was wondering if you could provide some commentary on the overall market and transaction market. Clearly, we've seen a bigger gap out in cap rates for non-rated below-investment-grade credits.

知道了。謝謝，馬特。然後，約翰，我想知道您是否可以對整個市場和交易市場提供一些評論。顯然，我們發現未評級低於投資級別的信貸資本化率存在更大差距。

And I'm just curious how you think the next six months or six to 18 months play out for investment-grade properties and what sellers' expectations are? Do you just -- is that they're going to be hoping or waiting for declining interest rates, and therefore, we'll stick to their pricing? Or do you see some give there on the seller side for investment grade?

我只是很好奇您認為未來六個月或六到十八個月投資級房產的情況如何以及賣家的期望是什麼？您是否只是——他們會希望或等待利率下降，因此我們會堅持他們的定價？或者您是否看到賣方提供了一些投資級別的優惠？

Yeah. I mean, I think sellers probably realize that they're not going to be banking on cap rates tightening or going lower. So if they need to sell, want to sell, this market is good enough, especially comparable to where interest rates are.

是的。我的意思是，我認為賣家可能意識到他們不會指望資本化率收緊或下降。因此，如果他們需要出售，想要出售，這個市場就足夠好了，尤其是與利率相當。

So I don't think you see any like false hope out there from people that -- I would say that people that don't have to sell aren't selling because they like the properties, and they don't -- they're not comfortable with their alternative investments. And so they're sitting tight. But people that whether they have debt coming due, they have investors that want capital, they are meeting the market.

因此，我認為你不會從人們那裡看到任何虛假的希望——我想說的是，那些不必出售的人之所以不出售，是因為他們喜歡這些房產，而他們不喜歡這些房產——他們”對他們的另類投資不滿意。所以他們坐穩了。但人們認為，無論他們是否有到期債務，是否有需要資金的投資者，他們都在滿足市場需求。

And then I would say on the marginal assets out there, whether non-IG credits and just maybe marginal locations, you're definitely seeing buyers being picky, choosy. And so those properties are just kind of languishing because there's less appetite to take on that risk. And those cap rates are very are wide enough, they're aware. The sellers just don't want to take the pain.

然後我想說的是，關於邊際資產，無論是非 IG 信貸還是邊際地點，你肯定會看到買家非常挑剔。因此，這些房產只是陷入了困境，因為人們不願意承擔這種風險。他們知道，這些上限利率非常廣泛。賣家只是不想承受痛苦。

Understood. All right. Thanks, guys.

明白了。好的。多謝你們。

Thank you.

謝謝。

Michael Gorman, BTIG.

邁克爾·戈爾曼，BTIG。

Yeah. Thanks. Good morning. John, I just wanted to ask about the development funding side of the equation, and I'm just curious the scale of the opportunities that you're seeing there. And also, understanding that you have the option or at least the look to take these properties out at the end, how do you balance out the opportunity and being opportunistic in terms of the earnings potential now versus layering on a lot of higher-yielding investments that could burn off in a couple of years from now and maybe create a bit of an FFO headwind? How do you how do you balance that out?

是的。謝謝。早安.約翰，我只是想問一下發展資金方面的問題，我只是好奇你在那裡看到的機會的規模。此外，了解您可以選擇或至少希望在最後將這些房產拿出來，您如何平衡機會並在當前的盈利潛力方面採取機會主義與分層進行大量高收益投資這可能會在幾年後消失，並可能造成一點FFO 逆風？你如何平衡這一點？

Yeah. I mean, look, that's definitely a high-class problem. Is that you're investing with high yield now that may be burned off in the future? And what's the world look like? Are you reinvesting at lower rates?

是的。我的意思是，看，這絕對是一個高級問題。您現在進行的高收益投資是否可能在未來被燒掉？世界是什麼樣子的？您是否以較低的利率進行再投資？

But I will take that, that risk, if you will, because we're getting paid outsized returns on quality real estate because of the non-functioning debt market. And the opportunity set for that is larger than we can accommodate. So it's nice being picky and choosy on what we do, but we'd like -- wish we could do more, but it will keep us busy here.

但如果你願意的話，我會承擔這個風險，因為由於債務市場不起作用，我們在優質房地產上獲得了巨額回報。為此設置的機會比我們所能容納的要大。因此，對我們所做的事情保持挑剔和挑剔是很好的，但我們希望——希望我們能做得更多，但這會讓我們在這裡忙碌。

Okay. Great. And then, Matt, just a quick one on the dividend side. What does the retained cash flow look like now? And do you have any room as maybe FFO grows as a result of some of these new investments to keep the dividend steady and retain more cash flow? Or are you kind of at the baseline in terms of the taxable payout?

好的。偉大的。然後，馬特，簡單介紹一下股息方面的情況。留存現金流現在怎麼樣？由於這些新投資可能導致 FFO 增長，您是否有任何空間來保持股息穩定並保留更多現金流？或者您的應稅支出是否處於基線？

Yeah, it's a good question. Free cash flow today is, call it, plus or minus $6 million or $7 million. So certainly, the payout ratio is attractive, and we've been able to retain a decent amount of cash flow relative to the size of the company. It's a balance growing the dividend, especially with the net investment spreads that we're driving on the asset recycling side, but also retaining cash flow to grow the platform.

是的，這是一個好問題。今天的自由現金流是正負 600 萬美元或 700 萬美元。因此，派息率當然很有吸引力，而且相對於公司規模，我們能夠保留相當多的現金流。這是一種平衡增加股息，特別是我們在資產回收方面推動的淨投資利差，同時也保留現金流以發展平台。

So we have some flexibility there that we'll evaluate going into the back half of the year, probably more specifically in the fourth quarter. But we're conscious that investors, especially on the retail side and the fixed income side also like to see some dividend growth as well.

因此，我們有一定的靈活性，我們將在今年下半年進行評估，更具體地說是在第四季度。但我們意識到投資者，特別是散戶投資者和固定收益投資者也希望看到股息增長。

Understood. Thanks for the time, guys.

明白了。謝謝你們抽出時間。

Thank you.

謝謝。

Thank you. There are no further questions at this time. Thank you all for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.

謝謝。目前沒有其他問題。感謝大家的參與。這確實結束了程序，您現在可以斷開連接。大家，祝你有美好的一天。