Alpine Income Property Trust Inc (PINE) 2024 Q2 法說會逐字稿

Good day and welcome to the Alpine Income Property Trust, second quarter 2024 operating results conference call. (operator instructions) As a reminder, this call is being recorded. I would now like to turn the call over to John Albright, President and CEO. Please go ahead.

美好的一天，歡迎來到 Alpine Income Property Trust 2024 年第二季經營業績電話會議。（操作員說明）謹此提醒，此通話正在錄音。我現在想將電話轉給總裁兼執行長約翰·奧爾布賴特 (John Albright)。請繼續。

Good morning, everyone, and thank you for joining us today for the Alpine Income Property Trust, second quarter 2024 operating results conference call. I'm pleased to have Phil Mays, our new Chief Financial Officer, joining me this morning.

大家早安，感謝您今天參加我們的 Alpine Income Property Trust 2024 年第二季經營業績電話會議。我很高興今天早上我們新任財務長菲爾梅斯 (Phil Mays) 加入我的行列。

Before we begin, I will turn it over to Phil to provide customary disclosures regarding today's call.

在我們開始之前，我將把它交給菲爾，按照慣例披露今天的電話會議。

Thanks, John. I would like to remind everyone that many of our comments today are considered forward-looking statements under federal securities laws. 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.

謝謝，約翰。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。本公司未來的實際績效可能與這些前瞻性陳述中討論的事項有顯著差異，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. Our disclosures from time to time in greater detail in the company's Form 10-K, Form10-Q and other SEC filings. You can find our SEC reports, earnings release and most recent investor presentation, which contains reconciliations of the non-GAAP financial measures we use on our website at alphinereit.com.

可能導致實際結果與預期有重大差異的因素與風險。我們不時在公司的 10-K 表、10-Q 表和其他 SEC 文件中更詳細地揭露資訊。您可以在我們的網站 alphinereit.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。

With that, I will turn the call back over to John.

這樣，我會將電話轉回給約翰。

Thanks, Phil. We are pleased that our successful asset recycling and investments in higher yielding quality loans have delivered a strong quarter led to an increase in our earnings guidance. On the asset recycling front during the quarter, we acquired a $14.6 million property leased to investment-grade tenants, Best Buy Golf Galaxy, an accretive yield to the disposition of two properties leased to Festival foods and Hobby Lobby for a disposition volume of 6.6 million and a blended exit cap rate of 7% for the sold properties.

謝謝，菲爾。我們很高興我們成功的資產回收和對高收益優質貸款的投資帶來了強勁的季度業績，從而提高了我們的獲利指引。在本季的資產回收方面，我們收購了租賃給投資級租戶百思買高爾夫銀河(Best Buy Golf Galaxy) 的價值1,460 萬美元的房產，處置租賃給Festival Foods 和Hobby Lobby 的兩處房產，處置量為660萬美元，增加了收益已售出物業的混合退出上限率為 7%。

Further, we are beginning to see investment opportunities in the market that we plan to take advantage of and continue recycling at accretive yields.

此外，我們開始看到市場上的投資機會，我們計劃利用這些機會並繼續以增值的方式進行回收。

On the loan investment front, we originated a $6.1 million first mortgage investment, of which $4.6 million was funded during the quarter. The initial yield on this investment was 11.5% was to provide funding toward the four pad retail development anchored by Wawa in a growing submarket of Cincinnati, Ohio.

在貸款投資方面，我們發起了 610 萬美元的第一筆抵押貸款投資，其中 460 萬美元是在本季籌集的。這項投資的初始收益率為 11.5%，旨在為 Wawa 在俄亥俄州辛辛那提不斷發展的子市場中的四塊零售開發項目提供資金。

During the quarter, we also sold $13.6 million, A-1 participation interest in our $23.4 million portfolio loan secured by 39 properties. That we originated in November of 2023. As a part of the transaction, loan was rated by independent rating agency whereby it received an A minus rating. This sale frees up capital for additional quality higher-yielding loan investments.

本季度，我們也出售了由 39 處房產擔保的 2,340 萬美元投資組合貸款中的 1,360 萬美元 A-1 參與權益。我們起源於 2023 年 11 月。作為交易的一部分，獨立評級機構對貸款進行了評級，並獲得 A 負評級。此次出售釋放了資金，用於額外的優質高收益貸款投資。

Including both property and structured investments year to date through June 30, 2024, the company has made total investments of $28.9 million at a weighted average initial investment yield of 9.8%. While our disposition activities totaled $20.2 million at a weighted average exit yield of 7.7%.

截至 2024 年 6 月 30 日，該公司已完成總投資 2,890 萬美元，加權平均初始投資收益率為 9.8%，包括房地產和結構性投資。我們的處置活動總額為 2,020 萬美元，加權平均退出收益率為 7.7%。

As of quarter end, our portfolio was 99% occupied and consisted of 137 properties totaling 3.8 million square feet with tenants operating in 23 sectors within 34 states. Our top tenants remain unchanged from our first quarter earnings call in April with Best Buy making it into our top five tenants after our recent acquisition.

截至季末，我們的投資組合已被佔用 99%，包括 137 處房產，總面積達 380 萬平方英尺，租戶分佈在 34 個州的 23 個部門。我們的頂級租戶與四月份第一季財報電話會議相比保持不變，百思買在我們最近收購後進入了我們的前五名租戶。

Further, we are actively paring down our Walgreens exposure and currently have two Walgreens in the sales process. All of our top five tenants carry investment grade credit ratings. We ended the quarter with 67% of our total annualized base rents coming from tenants with an investment grade credit rating, an increase of 400 basis points from this time last year.

此外，我們正在積極減少沃爾格林的曝光度，目前有兩家沃爾格林正在銷售。我們所有的前五名租戶都具有投資等級信用評級。本季結束時，年化基本租金總額的 67% 來自投資等級信用評等的租戶，比去年同期增加了 400 個基點。

From a valuation perspective, we are currently trading well above an implied 8% cap rate on our real estate portfolio, in a meaningful discount to our book value of approximately $18 per share. Additionally, we have one of the highest dividend yields in our peer group along with a healthy free cash flow and strong AFFO per share growth projects of 2024. Simply put, Alpine shares are great value today.

從估值角度來看，我們目前的交易價格遠高於我們房地產投資組合隱含的 8% 上限利率，較我們每股約 18 美元的帳面價值大幅折扣。此外，我們是同業中股息收益率最高的企業之一，擁有健康的自由現金流和 2024 年強勁的 AFFO 每股成長項目。簡而言之，阿爾派股票如今非常有價值。

Lastly, given our strong earnings during the first half of the year, we have increased our full FFO and AFFO guidance by $0.07 per share or 4.6% at the low end and $0.06 a share or 3.8% at the high end.

最後，鑑於我們上半年的強勁盈利，我們將 FFO 和 AFFO 的全部指引上調了每股 0.07 美元，即低端 4.6%，每股 0.06 美元，即高端 3.8%。

With that, I'll turn the call over to Phil to talk about our second quarter performance, balance sheet and guidance.

接下來，我將把電話轉給菲爾，討論我們第二季度的業績、資產負債表和指導。

Thanks, John. Versus the privilege to join the team here at a time. I've only been here a few weeks, but it is clear that management and the Board do not sit still and are constantly working to increase shareholder value. As the new CFO, I will endeavor to do the same.

謝謝，約翰。與一次加入這裡團隊的特權相比。我來到這裡才幾週，但很明顯，管理階層和董事會並沒有坐以待斃，而是不斷努力增加股東價值。作為新任財務官，我將努力做到同樣的事情。

Today, we will briefly highlight our earning balance sheet and guidance and then open the call to questions. Beginning with financial results. FFO and AFFO were both $0.43 per share for the quarter. This represents an increase of $0.06 per share or 16% over the second quarter of 2023.

今天，我們將簡要強調我們的獲利資產負債表和指導，然後開始提問。從財務業績開始。本季 FFO 和 AFFO 每股股價均為 0.43 美元。這意味著每股成長 0.06 美元，比 2023 年第二季成長 16%。

Growth in our earnings was driven by interest income from our loan portfolio along with accretive asset recycling. Additionally, other revenue for this quarter includes a $100,000 of non-recurring leasing commissions related to the 39 properties securing our $23.4 million portfolio loan.

我們的收入成長是由貸款組合的利息收入以及增值資產回收所推動的。此外，本季的其他收入包括 10 萬美元的非經常性租賃佣金，這些佣金​​與我們獲得 2,340 萬美元投資組合貸款的 39 處房產相關。

Our G&A for the quarter was $1.6 million. This is consistent with G&A for both the prior quarter and the second quarter of last year. As a reminder, G&A primarily consists of our external manager fee which was $1 million for the quarter.

我們本季的一般管理費用為 160 萬美元。這與上一季和去年第二季的一般管理費用一致。提醒一下，G&A 主要包括我們的外部經理費用，該季度為 100 萬美元。

During the quarter, the company paid a cash dividend of $0.275 per share. Our dividend is well covered at this represents AFFO payout ratio of 64%. We do aim to payout 100% of our taxable income each year and consistent with past practice, we will announce towards the end of August, our quarterly dividend amount for the third quarter.

本季度，該公司支付了每股 0.275 美元的現金股息。我們的股息得到了充分支付，AFFO 派息率為 64%。我們的目標是每年支付 100% 的應稅收入，並且按照過去的慣例，我們將在 8 月底宣布第三季的季度股息金額。

Moving to the balance sheet, we ended the quarter with net debt to enterprise value of 53%. Net debt to EBITDA a 7.4 times and a fixed-charge coverage ratio of 3.4 times. Additionally, we ended the quarter with $185 million of liquidity and we have no debt maturities until 2026.

轉向資產負債表，本季末我們的淨債務佔企業價值的比例為 53%。淨債務與 EBITDA 比率為 7.4 倍，固定費用覆蓋率為 3.4 倍。此外，本季末我們的流動資金為 1.85 億美元，且在 2026 年之前沒有債務到期。

Final balance sheet note, as John discussed, we sold at $13.6 million, A-1 participation interest in our $23.4 million portfolio loan. As required by GAAP and continue to report the full amount of this loan receivable on our balance sheet with a separate liability line item for the $13.6 million participation interest. Further interest income will continue to be recorded on the full loan amount with dentures expense, including an offsetting amount for the participation interest sold.

正如約翰所討論的，最後的資產負債表說明，我們以 1,360 萬美元的價格出售了 2,340 萬美元投資組合貸款中的 A-1 參與權益。依照 GAAP 的要求，繼續在我們的資產負債表上報告應收貸款的全部金額，並單獨列出 1,360 萬美元參與利息的負債項目。進一步的利息收入將繼續記錄在含假牙費用的全額貸款金額中，包括出售的參與利息的抵銷金額。

With regards to guidance, we are increasing our full year 2024 outlook. The new FFO guidance range of $1.58 to $1.62 per share and a new AFFO guidance range of $1.60 to $1.64 per share just represents a 4.2% increase at the midpoint of these ranges. The acquisition and disposition assumptions. Underlying our guidance remains unchanged at a range of $50 million to $80 million each.

在指導方面，我們正在提高 2024 年全年展望。新的 FFO 指導範圍為每股 1.58 美元至 1.62 美元，新的 AFFO 指導範圍為每股 1.60 美元至 1.64 美元，僅代表這些範圍中點的 4.2% 增長。收購和處置假設。我們的指導方針保持不變，為每份 5000 萬至 8000 萬美元。

Lastly, a couple of quick modeling notes. To begin the third quarter with in-place annualized straight-line base rent of $39.8 million and $39.5 million of in-place annualized cash base rent. Our annualized interest income currently has a run rate of $4.3 million, which, as previously discussed, is now offset by approximately $1.1 million of additional interest expense associated with the loan participations.

最後，一些快速建模筆記。第三季開始時，到位年化直線基本租金為 3,980 萬美元，到位年化現金基本租金為 3,950 萬美元。我們的年化利息收入目前的運作率為 430 萬美元，正如前面所討論的，現在被與貸款參與相關的約 110 萬美元的額外利息支出所抵消。

With that operator, please open the line for questions.

請透過該接線生撥打電話提問。

(operator instructions)

（操作員說明）

Gaurav Mehta, Alliance Global Partners.

Gaurav Mehta，聯盟全球合作夥伴。

I want to ask you that, some color on what you are seeing in the transaction market for net leased properties?

我想問一下，您在淨租賃房產交易市場上看到了什麼？

So we're seeing still some very good buyer interest for smaller negative property kind of $5 million and below is still a very active market and not a lot of dislocation, larger priorities that are moving as much there's a little bit more activity than last quarter for sure. We are seeing our opportunities where people need capital. One want to sell properties or need some financing, but it's much much better environment now than it was last quarter.

因此，我們看到買家對500 萬美元及以下的小型負房產仍然有很大的興趣，這仍然是一個非常活躍的市場，並且沒有太多混亂，更大的優先事項正在發生變化，活動比上季要多一些一定。我們在人們需要資本的地方看到了我們的機會。人們想要出售房產或需要一些融資，但現在的環境比上個季度好多了。

Okay. I also wanted to ask you on the acquisition that was completed in second quarter in the lease from on the acquisition was lower than your weighted average lease term. And I wanted to get some color on the lease term and is that something you plan to pursue going forward?

好的。我還想問你關於第二季完成的收購的問題，收購時的租賃期限低於你的加權平均租賃期限。我想了解租賃期限，這是您未來計畫追求的目標嗎？

Yeah, we mentioned in our investor presentation that we're going to load to increase our weighted average lease term as we move from here is that at that property owned buy, in investment grade it credit as a lease for lease rates adorable market in Asia where there's no supply.

是的，我們在投資者介紹中提到，當我們從這裡搬家時，我們將增加我們的加權平均租賃期限，在投資級別的房產購買中，它信用作為亞洲可愛市場的租賃利率的租賃沒有供應的地方。

So the tenants aren't doing well, they don't have opportunity to move it and find another available side and the disruption might make no sense. So you have a very high confidence that they're going to renew and discussions with them in the stores do well and the right side.

因此，租戶的表現不佳，他們沒有機會移動它並找到另一個可用的一側，中斷可能沒有意義。因此，您非常有信心他們會續訂，並且在商店中與他們的討論做得很好，而且是正確的。

So there's a as you know, that as our strategy is to get it out and high quality property that higher yield with a strong conviction that they're going to renew. And by the need of knowing that in the context of the public markets, we will work on increasing our weighted average at leased line.

如您所知，我們的策略是拿出高收益的優質房產，並堅信它們將進行更新。並且需要知道，在公開市場的背景下，我們將努力提高租賃線路的加權平均數。

Okay. Thank you. That's all I had.

好的。謝謝。這就是我所擁有的一切。

RJ Milligan, Raymond James.

RJ 米利根，雷蒙德詹姆斯。

Hey, good morning, guys. John, you mentioned that you're looking to I think you have two Walgreens under contract to dispose. I'm just curious what the lease expiration schedule looks for your Walgreens exposure, if there's any short term re-leasing risk?

嘿，早上好，夥計們。約翰，你提到你正在尋找我認為你有兩個合約下的沃爾格林需要處置。我只是好奇您的沃爾格林敞口的租賃到期時間表是什麼樣的，是否有任何短期重新租賃風險？

So our average, weighted average lease length of the Walgreens about eight years. So we have a longer duration there with the Walgreens and that obviously gives us a better opportunity to sell properties at reasonable cap rates and so obviously, mentioning that we got to the sale process, individuals are going through some others that are really good locations and look to actively bring down Walgreens from the number one position, though, we'll definitely make some good headway for the rest of the year on doing that.

因此，我們對沃​​爾格林的平均加權平均租賃期限約為八年。因此，我們與沃爾格林的合作期限較長，這顯然給了我們更好的機會以合理的上限利率出售房產，因此，很明顯，提到我們已經進入銷售流程，個人正在經歷其他一些非常好的地點，不過，我們希望積極地將沃爾格林從第一的位置上拉下來，我們肯定會在今年剩下的時間裡取得一些良好的進展。

Thanks. That's helpful. And just given the recent recovery in some of the the net-lease stocks, I'm curious how that changes your cost of capital equation and the outlook for the rest of the year in terms of right now, I think you're set to be per guidance sort of a net neutral in terms of acquisitions and dispositions. I'm curious, where do we need to see Alpine stock to get you a net acquirer position?

謝謝。這很有幫助。鑑於最近一些淨租賃股票的復甦，我很好奇這將如何改變你的資本成本方程式以及今年剩餘時間的前景，我認為你準備好根據指導意見，在收購和處置方面保持淨中立。我很好奇，我們需要在哪裡查看阿爾派股票才能獲得淨收購方地位？

Yes. Look, I mean, we're finding, as I mentioned, it's a good opportunity. And we still given that if you want to sell Walgreens down, that's a good source of capital to redeploy in. So we don't necessarily need the public markets to grow. Obviously, we love the public markets to be supportive for growth, but we're going to be patient and see whether that basically happened for us.

是的。聽著，我的意思是，正如我所提到的，我們發現這是一個很好的機會。我們仍然認為，如果你想出售沃爾格林，這是重新部署的良好資金來源。因此，我們不一定需要公共市場來發展。顯然，我們希望公開市場能夠支持成長，但我們將保持耐心，看看這是否基本上發生在我們身上。

And so keep on trying to put points on the board here in and annuity stream, some good successes here. Again, we feel like the broad markets are supportive of that will come for us, but we don't need to depend on to be somewhat of a net acquirer. And so that's kind of where we are right now.

因此，繼續努力在董事會和年金流中投入積分，這裡取得了一些良好的成功。同樣，我們認為廣闊的市場支持我們的發展，但我們不需要依賴成為一個淨收購者。這就是我們現在的處境。

Great. That's it for me. Thanks for the color.

偉大的。對我來說就是這樣。謝謝你的顏色。

Rob Stevenson, Janney Montgomery Scott LLC.

羅布史蒂文森，珍尼蒙哥馬利史考特有限責任公司。

Good morning, John, just to follow up on the Walgreens. Given the issues of the fact a lot of people want to reduce their Walgreens exposure who had a prospective buyers of these properties. These days are these just local guys that want the eight, 10 years of investment grade tenant for these guys looking to do something else with Walgreens doesn't renew, how would you characterize the potential buyer pool of Walgreens assets today?

早安，約翰，我來跟進一下沃爾格林的狀況。考慮到事實的問題，許多人希望減少對沃爾格林的接觸，因為他們有這些房產的潛在買家。如今，這些只是本地人，他們想要八年、十年的投資級租戶，而這些人希望與沃爾格林做其他事情，但不續約，您如何描述當今沃爾格林資產的潛在買家群體？

Yeah, Rob basically answered it all the above. We have we began looking at our demographics of our total portfolio. You can basically summarize that we have really good locations. And so you have 1031 buyers who are basically saying our bag at Walgreens, good credit or good lease length in a market that dynamic growing, no one's building anything. You're buying it at below replacement cost.

是的，羅布基本上回答了以上所有問題。我們開始研究整個投資組合的人口統計。您基本上可以總結出我們的地理位置非常好。所以你有 1031 個買家，他們基本上都在說我們在沃爾格林的包，在一個充滿活力的增長市場中，良好的信用或良好的租賃期限，沒有人建造任何東西。您以低於重置成本的價格購買它。

And then we've had situations where tenants want the Walgreens box and we'll basically say I can probably negotiate maybe an early termination with Walgreens, even though we don't have any indications are closing a store, but there's a little bit of that situation, we're our tenants want to get a hold of a good quarter. So it's all the above.

然後我們遇到了租戶想要沃爾格林盒子的情況，我們基本上會說我可能可以與沃爾格林協商提前終止，儘管我們沒有任何跡象表明要關閉商店，但有一點在這種情況下，我們的租戶希望獲得一個好的季度。所以以上就是全部了。

And then to your comments on extending Wall, there's four little over 4.5 years left on the Best Buy and Golf Galaxy, Dick's lease. Any sense where these properties rank within the overall profitability scale of these retailers? And have you guys already had conversations with them about extension?

然後，關於你對延長沃爾的評論，迪克的百思買和高爾夫銀河的租約還剩 4 年多於 4.5 年。這些物業在這些零售商的整體獲利規模中的排名有什麼意義嗎？你們已經和他們討論過延期事宜了嗎？

Yeah. I mean, we talked to them when we bought the property and they are basically the same property for doing those locations are doing very good for them. And so certainly we can go in there and negotiate some sort of early extension, but it's a little early for them and for us.

是的。我的意思是，我們在購買房產時與他們進行了交談，他們基本上是同一處房產，因為這些地點對他們來說非常有好處。因此，我們當然可以去那裡協商某種形式的提前延期，但對他們和我們來說都有點早。

And so at the appropriate time. We will definitely discuss that with them. Usually we would like to wait for them to want to refresh our store and maybe provide some capital to basically get a longer lease term and a return on that capital. But so there's no we aren't going to rush to do anything where they're located very strong demographics and so market should even be better in a couple of years.

所以在適當的時候。我們肯定會與他們討論這個問題。通常我們會等待他們想要刷新我們的商店，並可能提供一些資本來基本上獲得更長的租賃期限和資本回報。但所以我們不會急於在人口結構非常強大的地方做任何事情，因此市場在幾年內應該會更好。

Okay. And then these assets are obviously big boxes. How are you thinking about the overall portfolio mix going forward in terms of smaller boxes versus bigger boxes? Or is it just all opportunity driven at this point for you guys?

好的。這些資產顯然是大盒子。您如何看待較小盒子與較大盒子之間的整體投資組合組合？或者現在對你們來說這只是機會驅動的？

It is opportunity driven about we're seeing more opportunity and amount of measurement before on the larger boxes, given that you're not really talking about the smaller 10, 31 buyers. So the arbitrage is much greater and the smaller property, we're seeing cap rates with interest rates coming down, cap rates being extremely supportive of selling the properties.

這是機會驅動的，我們之前在較大的盒子上看到了更多的機會和測量量，因為你並不是真正談論較小的 10、31 個買家。因此，套利要大得多，而且房產規模要小，我們看到資本化率隨著利率的下降而下降，資本化率非常有利於出售房產。

And so we'll take advantage of that cost to capital selling at very low cap rates and buying where there's value opportunity. So we kind of like that on may will feel we'll be in general opportunistic. But we're seeing more opportunities on the larger ticket items.

因此，我們將利用資本成本以非常低的資本化率出售並在有價值機會的地方購買。因此，我們可能會覺得我們總體上是機會主義的。但我們在大件商品上看到了更多機會。

Okay. And then last one for me. How should we be thinking the second half earnings? Is there anything that's nonrecurring this quarter to next or any drags that you expect in the back half of the year? If I look at either the $0.84 of FFO that you guys have done year to date or the $0.43 in the second quarter.

好的。然後是我的最後一張。我們該如何看待下半年的獲利？本季到下季是否有任何非重複發生的事情，或者您預計下半年會出現什麼拖累？如果我看一下你們今年迄今完成的 0.84 美元的 FFO 或第二季度的 0.43 美元。

Both of those run rates are well above where the so buck 59, the buck 62 guidance ranges. What's the drag or what's the non-reoccurring is to come out of these numbers when we're thinking about the back half of the year?

這兩個運行率均遠高於 59 美元和 62 美元的指導範圍。當我們考慮今年下半年時，這些數字會帶來什麼拖累或不會再次發生？

Yeah, Rob, it's Phil. I think any time you commented that earnings per share to keep in context is at $150,000 represents $0.01, but that's a small amount or just time can move the needle here, but that the current quarter did have, as I mentioned in my remarks, $200,000 of nonrecurring leasing commissions and finally, the management and leasing commissions for managing that 39 properties that underlie the portfolio loan.

是的，羅布，我是菲爾。我認為任何時候你評論說每股收益為150,000 美元代表0.01 美元，但這是一個很小的數字，或者只是時間可以改變這裡的情況，但正如我在評論中提到的，當前季度確實有200,000美元的一次性租賃佣金，最後是管理投資組合貸款所涉及的 39 處房產的管理和租賃佣金。

And there was an unusually large amount of leasing commissions from that this quarter. So it was about $200,000 of nonrecurring in the current quarter and then I think you got to keep in mind just transaction timing, which fall into a couple of buckets right, one with our property and one with our loan portfolio.

本季的租賃佣金金額異常高。因此，本季的非經常性費用約為 200,000 美元，然後我認為您必須記住交易時間，交易時間分為兩類，一類涉及我們的財產，另一類涉及我們的貸款組合。

With property acquisitions and dispositions, dispositions could very well be the acquisition, and that would be dilutive unless we have a line of credit largely swapped out. So if that were to happen we may not we can't really pay down the line all the way because we've got $50 million of swaps that there could be a temporary time just temporary or we're sitting on some cash, before we redeploy it.

對於財產收購和處置，處置很可能是收購，除非我們有大量信貸額度被換出，否則這將被稀釋。因此，如果發生這種情況，我們可能無法真正支付全部費用，因為我們有 5000 萬美元的掉期，可能會有一個暫時的時間，只是暫時的，或者我們坐擁一些現金，然後再重新部署它。

Now, with the loan portfolio, in particular, that portfolio alone, that buying that on that borrower is selling this property who wanted to sell those properties and repaid the loans. You could have some time there. So I think you know, between the one-time item this quarter and it's just largely transaction timing and relatively small amount that can quickly move the needle.

現在，對於貸款組合，特別是僅該組合，在該借款人身上購買該投資組合就是出售該房產，而後者想要出售這些房產並償還貸款。你可以在那裡待一段時間。所以我想你知道，在本季的一次性項目之間，主要是交易時間和相對較小的金額可以迅速推動發展。

Okay. That's helpful. Thanks, guys, and have a great weekend.

好的。這很有幫助。謝謝，夥計們，祝週末愉快。

Wes Golladay, Baird.

韋斯·戈拉戴，貝爾德。

Hey, good morning to everyone. When you look to make future loan investments, are you looking to sell parts of it like you do with A-1 deal?

嘿，大家早安。當您希望進行未來的貸款投資時，您是否希望像 A-1 交易那樣出售部分貸款？

Now, selling A-1 deal is freed up some capital because we are restricted from how much we can do a lot of investments. So that allowed us to do another loan in the quarter. Again, we still have opportunity now to do. Probably near $20 million additional lot of investments and so we're being patient and picky, but that's what it early and I don't see us doing that well, we had some sort of larger loan opportunity, but I would expect that.

現在，出售 A-1 交易可以釋放一些資金，因為我們可以進行大量投資的數量受到限制。這樣我們就可以在本季獲得另一筆貸款。再說一次，我們現在仍然有機會去做。可能還有近 2000 萬美元的額外投資，所以我們保持耐心和挑剔，但這就是早期的情況，我不認為我們做得那麼好，我們有某種更大的貸款機會，但我希望如此。

Okay. How are you thinking about your exposure to Family Dollar, what happens to the dual branded stores if the brand is sold and where your stores originally Family Dollars for the dual branded ones?

好的。您如何看待您對 Family Dollar 的接觸？

So Steven Greathouse joined as our Chief Investment Officer and let him speak to that.

因此，史蒂文·格特豪斯 (Steven Greathouse) 加入我們，擔任我們的首席投資官，並讓他對此發表講話。

Hi Wes, [inaudible].

嗨韋斯，[聽不清楚]。

So the equity we have plenty of lease term on them. And really what we're looking at the underwriting is more of a credit play. So right now, our portfolio is certified, and we'll look to potentially reduced exposure. But that way, you won't be buying a water pump. So we're kind of like where we're sitting right now. We're calling it.

因此，我們的股權有足夠的租賃期限。實際上，我們所關注的承銷更多的是信貸遊戲。因此，現在我們的投資組合已獲得認證，我們將尋求潛在的減少風險敞口。但這樣一來，您就不必購買水泵了。所以我們有點像我們現在坐的地方。我們正在呼喚它。

Ok. Thanks, everyone thinking, thank you.

好的。謝謝大家的思考，謝謝。

Matthew Erdner, Jones Trading.

馬修‧艾德納，瓊斯貿易公司。

Hey, good morning, guys. Phil, welcome to the team. Just so what kind of drives the acquisition activity towards the higher end of your guidance because right now you're a little over half, but what kind of takes those numbers towards that higher end?

嘿，早上好，夥計們。菲爾，歡迎加入我們的團隊。那麼，什麼樣的因素會推動收購活動向您指導的高端方向發展，因為現在您的指導水準略高於一半，但是什麼樣的因素會將這些數字推向更高的方向呢？

We're seeing some as i mentioned, it is a good opportunity obviously, these are the two deal is in execution. So we feel very comfortable that we'll definitely meet expectations there. Either we like a second half of the year or certainly have plenty of opportunities. So we're happy with what we see in, I think we'll be able to execute and deliver.

正如我所提到的，我們看到了一些，這顯然是一個很好的機會，這是正在執行的兩筆交易。所以我們感到非常放心，我們一定會在那裡滿足期望。要嘛我們喜歡下半年，要嘛肯定有很多機會。因此，我們對所看到的感到滿意，我認為我們將能夠執行和交付。

Yes, that's good to know. And then I guess, how comfortable are you taking that credit facility up or are you guys comfortable where it is and kind of want to start taking it down?

是的，很高興知道這一點。然後我想，你們是否願意接受該信貸安排，或者你們對它的現狀感到滿意並想開始取消它嗎？

No, we're comfortable with where it is. Part of it on the leverage side that will again, we have a nice, strong free cash flow and gives us a small company. It doesn't take much to bring it down. And so we're comfortable with where it is. But as I mentioned, we have very many swaps. So you wouldn't want to take it down beyond kind of where we have a certain level of swaps.

不，我們對它所處的位置感到滿意。其中一部分是在槓桿方面，我們將再次擁有良好、強勁的自由現金流，並使我們成為一家小公司。不需要太多就能把它打下來。所以我們對它的現狀感到滿意。但正如我所提到的，我們有很多交換。所以你不會想把它降低到我們有一定程度的交換的範圍之外。

Yes, that's helpful. Thanks, guys.

是的，這很有幫助。謝謝，夥計們。

Thank you.

謝謝。

John Massocca, B. Riley Securities.

約翰‧馬索卡 (John Massocca)，B. 萊利證券 (Riley Securities)。

Good morning. With regards to the loan investment, what is the long term outlook for that portion of the portfolio. Is the thought to replace exposure here as loans are repaid? Or should that kind of wind down over time, especially if we're in a more kind of normalized interest rate environment

早安.關於貸款投資，該部分投資組合的長期前景如何？是否有在償還貸款時更換風險敞口的想法？或者這種情況是否會隨著時間的推移而逐漸減弱，特別是如果我們處於更正常化的利率環境中

We get into more of a normalized, I would call it rather than industry environment and normalized banking market, that's really what's causing the opportunity. The banks are tapped out. They're not looking to lend further in real estate as they work their books down because they're stuck with a lot of logs that are paying off in the apartment sector and industrial, those are we're really, really hard to refinance now, given where they were.

我們進入了更多的標準化，我稱之為標準化，而不是產業環境和標準化的銀行市場，這才是真正帶來機會的原因。銀行已經被掏空了。他們在減少賬簿時不打算在房地產領域進一步放貸，因為他們被大量的原木困住了，這些原木在公寓行業和工業領域得到了回報，這些是我們現在真的非常難以再融資的地方。到他們所在的位置。

And so that's where the real opportunity is. So but we expect that at some point to burn down and be with more of a obviously a fully and at least kind of ownership interest. But we're taking advantage of the market as we see it right now, we don't see that getting better on the credit availability side.

這才是真正的機會。所以，但我們預計，在某個時候，它會被燒毀，並擁有更多顯然完全且至少是某種形式的所有權權益。但正如我們現在所看到的那樣，我們正在利用市場，但我們認為信貸可用性方面並沒有變得更好。

And so so again, finding really high-quality properties that we would not be able to purchase because the cap rates would be weight inside of where we could have an interest and basically being able to loan money at double digits. Unlevered first mortgage positions at lower basis than we deal with by the properties is fantastic. And so we'll keep being selective in investing there. But eventually, the other things will level out. But we don't see it anytime soon.

如此反复，找到我們無法購買的真正高品質的房產，因為上限利率將在我們可以擁有利息的範圍內發揮作用，並且基本上能夠以兩位數的價格貸款。無槓桿的第一抵押貸款頭寸的基差低於我們處理的房產，這真是太棒了。因此，我們將繼續有選擇性地在那裡投資。但最終，其他事情將會趨於平穩。但我們不會很快看到它。

Okay. And I know most of those loans are kind of shorter duration in nature, but as interest rates shift here, are there any kind of prepayment options for those counterparties?

好的。我知道大多數貸款的期限本質上較短，但隨著利率的變化，這些交易對手是否有任何提前還款的選擇？

They can prepay of others make holes. So we didn't knew all this effort to just get a loan to prepay six months on average duration. That is roughly 18 months. So yeah, they can pay early, but we have a make whole provision most likely the borrowers are going to go through the efforts of refinancing just to save a certain amount for a short duration laid it out a bigger fish to fry, if you will.

他們可以預付別人的漏洞。因此，我們不知道所有這些努力只是為了獲得平均預付六個月期限的貸款。也就是大約18個月。所以，是的，他們可以提前付款，但我們有一個全面的準備金，借款人很可能會通過再融資的努力，只是為了在短時間內節省一定金額，如果你願意的話，可以把它放在更大的魚上煎。

Okay. And then you talked a bit about the Walgreens and where the demand for potential sales is coming. How is that translating maybe broad strokes with the whole Walgreens transaction market and the cap rate? I mean, what are kind of the cap rate ranges for those types of assets?

好的。然後您談到了沃爾格林以及潛在銷售需求的來源。這對整個沃爾格林交易市場和資本化率有何影響？我的意思是，這些類型資產的上限利率範圍是多少？

Yeah we can come out of that category, maybe cap rates that are being one less week of starter closing on some of the you'll see. But I will say that what we're seeing is really more localized about location and not as much about that credit.

是的，我們可以擺脫這個類別，也許您將看到的一些項目的啟動結束時間少一周。但我要說的是，我們所看到的實際上更多的是關於位置的本地化，而不是關於信用。

And so it's not as someone to say, I don't need to go see that property because I'm buying the property for the duration of the Walgreens presence that appeared my cap rate. It's more of a lever available to build the database to be able to bind as corner for this basis and they are willing to pay perhaps a higher cap rate than you might imagine.

因此，這並不是像有人說的那樣，我不需要去看那處房產，因為我在沃爾格林存在期間購買了該房產，這出現了我的資本化率。它更像是一個可以用來建立資料庫的槓桿，能夠作為這個基礎的角落，他們願意支付比你想像的更高的上限利率。

Now, there will be certain situations where know it will lean on the Walgreens credit at a cap rate will be higher. So it's a little bit of a barbell effect where you get really good strong locations where there's a lot of tenants who wanted to be at that location and that cap rate would be lower and would basically based on the strength of the location.

現在，在某些情況下，我們知道它將以更高的上限利率依賴沃爾格林信貸。因此，這有點像槓鈴效應，你會得到非常好的強大位置，那裡有很多租戶想要在該位置，而上限利率會較低，基本上取決於位置的強度。

Okay. That's very helpful. And that's it for me. Thank you very much.

好的。這非常有幫助。對我來說就是這樣。非常感謝。

Barry Oxford, Colliers International.

巴里牛津，高力國際。

Great. Hey, John, how you doing? My question revolves around the Walgreens and if they're getting out of a lease early. Who is the tenants that are kind of growing and that are other kind of the natural tenants to replace a Walgreens because if people are more concerned about that location, and they are kind of about the duration. That's telling me that they want to have some certainty that if Walgreens walks away and does a lease termination that they've got somebody that can backfill?

偉大的。嘿，約翰，你好嗎？我的問題圍繞在沃爾格林，以及他們是否會提前終止租約。誰是正在成長的租戶，誰是取代沃爾格林的其他自然租戶，因為如果人們更關心那個位置，他們會關心持續時間。這告訴我，他們希望確定，如果沃爾格林離開並終止租約，他們是否有人可以填補空缺？

We have a medical, it's a good box for [you prepared] you have restaurants that we screen that will be how fast casual, which as you know, are growing like crazy integrating into the world that you have got knows how they're going to find the locations they need to find to grow even if you went to school, the dollar store and that's sort of things, there's really quite a bit of that are in demand because as we think about the Walgreens that on the corner, it's out front mostly drive through. So there's our management there.

我們有一個醫療，這是一個很好的盒子，[你準備好了]你有我們篩選的餐廳，休閒餐廳的速度將會有多快，正如你所知，它們正在瘋狂地融入這個世界，你知道他們是如何發展的找到他們需要發展的地點，即使你去上學，一元商店之類的東西，確實有相當多的需求，因為當我們想到街角的沃爾格林時，它已經過時了前面大部分是開車經過的。我們的管理層就在那裡。

John, would you be a buyer of an asset where Walgreens is leaving just because you might have a tenant or two that, you know, would love that spot?

約翰，你會因為沃爾格林可能有一兩個租戶喜歡那個地方而購買沃爾格林正在離開的資產嗎？

Yeah, we're on

是的，我們在

And you could get a good deal on it because they're moving out.

而且你可以買到很划算的東西，因為他們要搬走了。

Yeah, We're just a very low base and roles they focus. So we absolutely would buy it at our ordering that we knew we had a tenant in hand and we are getting paid handsomely for that sort of transaction?

是的，我們只是一個非常低的基礎和他們關注的角色。因此，我們絕對會在訂購時購買它，因為我們知道我們手頭上有一個租戶，我們會從此類交易中獲得豐厚的報酬？

We haven't been really a certainty for that. But yeah, I mean, we're all valid [HMA]. You could see us perhaps take them. We're holding some one year of raising that capital or that transaction,

我們對此還沒有真正確定。但是，是的，我的意思是，我們都是有效的[HMA]。你可以看到我們也許會帶走他們。我們將舉行為期一年的籌集資金或交易的活動，

Right.

正確的。

So it would be on that side of the equation as well.

所以它也會在等式的這一邊。

Because it seems to me like the 1031 buyers would not be interested in that kind of deal?

因為在我看來，1031 買家不會對這種交易感興趣？

I wouldn't come to that conclusion.

我不會得出這個結論。

Okay. That's all I have for today. Thank you, guys.

好的。這就是我今天的全部內容。謝謝你們，夥計們。

Thank you. This concludes the question and answer session. Thank you for your participation. You may now disconnect. Everyone, have a great day.

謝謝。問答環節到此結束。感謝您的參與。您現在可以斷開連線。大家，祝你有美好的一天。