Necessity Retail REIT Inc (RTL) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Necessity Retail REIT Fourth Quarter and Year-end 2022 Earnings Call. (Operator Instructions) Please note, this conference is being recorded. I would now like to turn the conference over to Curtis Parker, senior Vice President. Please go ahead.

早上好，歡迎參加 Necessity Retail REIT 第四季度和 2022 年年底收益電話會議。 （操作員說明）請注意，本次會議正在錄製中。現在我想將會議交給高級副總裁柯蒂斯·帕克 (Curtis Parker)。請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining us. This call is being webcast in the Investor Relations section of RTL's website at www.necesityretailreit.com. Joining me today on the call to discuss the results are Michael Weil, President and Chief Executive Officer; and Jason Doyle, Chief Financial Officer. The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements.

謝謝你，接線員。大家早上好，感謝您加入我們。此次電話會議正在 RTL 網站 www.necesityretailreit.com 的投資者關係部分進行網絡直播。今天與我一起參加電話會議討論結果的是總裁兼首席執行官 Michael Weil；和首席財務官 Jason Doyle。以下信息包含前瞻性陳述，這些陳述存在風險和不確定性。如果這些風險或不確定性中的一項或多項成為現實，實際結果可能與前瞻性陳述明示或暗示的結果存在重大差異。

We refer all of you to our SEC filings, including the annual report on Form 10-K for the year ended December 31, 2022, filed on February 23, 2023, and all other filings with the SEC after that date for a more detailed discussion of the risk factors that could cause these differences or otherwise impact our business. We look -- any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, RTL disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law.

我們請大家參閱我們向 SEC 提交的文件，包括 2023 年 2 月 23 日提交的截至 2022 年 12 月 31 日的 10-K 表格年度報告，以及該日期之後向 SEC 提交的所有其他文件，以進行更詳細的討論可能導致這些差異或以其他方式影響我們業務的風險因素。我們認為，本次電話會議期間提供的任何前瞻性陳述僅是截至本次電話會議之日做出的。正如我們在 SEC 備案文件中所述，除法律要求外，RTL 不承擔任何更新或修改這些前瞻性陳述的意圖或義務。

Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website.

此外，在今天的電話會議中，我們還將討論非公認會計準則財務指標，我們認為這些指標有助於評估公司的財務業績。這些措施不應被孤立地考慮，也不應替代我們根據公認會計準則編制的財務業績。我們網站上發布的收益報告中提供了這些指標與最直接可比的 GAAP 指標的調節表。

Please also refer to our earnings release for more information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call. I'll now turn the call over to Mike Weil. Mike?

另請參閱我們的收益報告，了解有關我們認為的隱含投資級租戶的更多信息，我們將在今天的電話會議中使用該術語。我現在將電話轉給邁克·韋爾。麥克風？

Thanks, Curtis, and thank you all for joining us today. We continue to make great progress on some of our key strategic objectives during the first quarter, including leasing available space, renewing leases with existing tenants, enhancing our balance sheet through strategic dispositions and reducing our net debt by approximately $29 million from the prior quarter.

謝謝柯蒂斯，也感謝大家今天加入我們。第一季度我們在一些關鍵戰略目標上繼續取得重大進展，包括租賃可用空間、與現有租戶續租、通過戰略配置改善我們的資產負債表以及比上一季度減少約 2900 萬美元的淨債務。

As of March 31, 2023, our high-quality portfolio features a top 20 tenant roster that is 64% investment-grade or implied investment grade with no one tenant representing more than 4% of annualized straight-line rent. The portfolio also boasts strong exposure to Sunbelt states, where we own properties that generate 57% of our portfolio-wide annualized straight-line rent.

截至 2023 年 3 月 31 日，我們的高質量投資組合擁有前 20 名租戶名單，其中投資級或隱含投資級佔 64%，沒有一個租戶佔年化直線租金的 4% 以上。該投資組合還擁有在陽光地帶各州的強大投資，我們在這些州擁有的房產產生了我們整個投資組合年化直線租金的 57%。

To continue enhancing our portfolio, we've built a leasing pipeline that we expect to grow occupancy and increase straight-line rent. In addition to the $400 million of property dispositions we completed last year, we have over $180 million of dispositions that we've already completed or have in our pipeline. In line with our comments on prior calls, we plan to use the net proceeds from these sales to continue improving our balance sheet by reducing our net debt as we have in the last 2 quarters.

為了繼續增強我們的投資組合，我們建立了一條租賃渠道，預計將增加入住率並增加直線租金。除了我們去年完成的 4 億美元的財產處置之外，我們還有超過 1.8 億美元的財產處置已經完成或正在進行中。根據我們對之前電話會議的評論，我們計劃利用這些銷售的淨收益，通過減少過去兩個季度的淨債務來繼續改善我們的資產負債表。

Our focus on dispositions and leasing is designed to improve our leverage ratios, including net debt to adjusted EBITDA over the long run. The modest increase of this ratio in the first quarter compared to the fourth quarter of 2022 is due in part to nonrecurring revenue items received during the fourth quarter and general and administrative expensive -- expenses that are frequently elevated in the first quarter due to year-end audit and legal expenses. We anticipate that as in prior quarters, these will normalize over the remainder of the year. We believe that our asset management and disposition efforts will have the intended deleveraging effect as these elevated costs abate.

我們對處置和租賃的關注旨在提高我們的槓桿率，包括長期淨債務與調整後 EBITDA 之比。與 2022 年第四季度相比，第一季度這一比率略有增加，部分原因是第四季度收到的非經常性收入項目以及昂貴的一般和行政費用——由於去年的原因，第一季度的費用經常增加。結束審計和法律費用。我們預計，與前幾個季度一樣，這些情況將在今年剩餘時間內恢復正常。我們相信，隨著這些上升成本的減弱，我們的資產管理和處置工作將產生預期的去槓桿效果。

The significant commitment we've made to asset and property management continued to deliver results. Our executed leases as of quarter end plus leasing pipeline as of May 1, will raise occupancy in our portfolio to 94.5%, up from the actual occupancy of 93.7% at the end of the fourth quarter and increased straight-line rent by $7.7 million, assuming executed leases commence and signed LOIs lead to definitive leases on their contemplated terms.

我們對資產和物業管理做出的重大承諾繼續取得成果。截至季度末，我們已執行的租賃加上截至 5 月 1 日的租賃渠道，將使我們投資組合的入住率從第四季度末的實際入住率 93.7% 提高至 94.5%，直線租金增加 770 萬美元，假設已執行的租賃開始並簽署了意向書，導致按照預期條款達成最終租賃。

New and renewal leases signed during the first quarter totaled over 1 million square feet. This includes 274,000 square feet across 26 new leases in our multi-tenant portfolio. with a combined $4 million of annualized straight-line rent, plus 722,000 square feet on 44 lease renewals in our multi-tenant portfolio, representing $7.4 million in annualized straight-line -- in straight-line and nearly 103,000 square feet on 23 leases representing $6.3 million in annualized straight-line rent in our single-tenant portfolio.

第一季度簽署的新租約和續租租約總計超過 100 萬平方英尺。其中包括我們多租戶投資組合中 26 個新租賃的 274,000 平方英尺。總計 400 萬美元的年化直線租金，加上我們多租戶投資組合中 44 次續租的 722,000 平方英尺，相當於年化直線租金 740 萬美元——直線和 23 次租賃的近 103,000 平方英尺，代表我們的單租戶投資組合年化直線租金為 630 萬美元。

The results of our leasing continue to illustrate the quality of our assets, driving higher leasing rates even in the current environment. As of quarter end, the multi-tenant lease renewals had a spread of plus 12.7% between the previous rent and the rent payable under the terms of the renewal, demonstrating the strong renewal demand and market for our suburban multi-tenant assets.

我們的租賃結果繼續說明了我們的資產質量，即使在當前環境下也推動了更高的租賃率。截至季度末，多租戶續租的租金與續租條款下的應付租金之間的差價達 12.7%，這表明我們郊區多租戶資產的強勁續租需求和市場。

In 2022, the spread on lease renewals was an attractive 6.4%. The upwards trajectory of this spread is encouraging and consistent with the demand we're seeing for the quality of our shopping centers. This strength has carried over into the second quarter. We have a robust leasing pipeline as of May 1, which includes leases executed after the end of the first quarter of over 500,000 square feet for $7.1 million in annualized straight-line rent in the multi-tenant portfolio.

2022 年，續租利差達到 6.4%，頗具吸引力。這種傳播的上升軌跡令人鼓舞，並且與我們所看到的對購物中心質量的需求一致。這種強勁勢頭延續到了第二季度。截至 5 月 1 日，我們擁有強勁的租賃渠道，其中包括第一季度末後執行的超過 500,000 平方英尺的租賃，多租戶投資組合的年化直線租金為 710 萬美元。

Although the portfolio continues to perform at a very high level, with continued strong leasing activity and positive spreads on renewals, we have had a few tenants whom were working through some challenges. I'd like to give you an update. As previously disclosed in our 10-K, Tom's King, a large regional operator of Burger King franchises filed for Chapter 11 in January; and Mountain Express, a large regional operator of gas and convenience properties filed on March 23, 2023. In each of these cases, we're evaluating leasing and sale proposals on an individual property basis, with the goal of maximizing long-term value for shareholders.

儘管投資組合繼續保持在非常高的水平，租賃活動持續強勁，續約價差也呈正值，但我們有一些租戶正在應對一些挑戰。我想向您通報最新情況。正如我們之前在 10-K 中披露的那樣，漢堡王特許經營的大型區域運營商 Tom's King 在 1 月份申請了美國破產法第 11 章； Mountain Express 是一家大型區域天然氣和便利物業運營商，於 2023 年 3 月 23 日提交申請。在每一個案例中，我們都會對單個物業的租賃和銷售提案進行評估，目標是實現長期價值最大化股東。

Let's look at each tenant separately and at what we've been doing in response to their proceedings.

讓我們分別看看每個租戶，以及我們針對他們的訴訟採取的措施。

We had 41 leases with Tom's King at the end of the fourth quarter. In January, 9 of these leases were terminated and another 4 were terminated after Q1. The remaining 28 of these leases were assumed and are current on their rent. We expect these 28 locations to remain leased through the process. Of the 13 terminated leases, we're negotiating new leases with new tenants at 5 of the properties and actively marketing to sell or lease the other 8.

截至第四季度末，我們與 Tom's King 簽訂了 41 份租約。 1 月份，其中 9 個租賃被終止，另外 4 個租賃在第一季度後終止。其中其餘 28 份租賃已被假定並正在支付租金。我們預計這 28 個地點將在整個過程中保持租賃狀態。在 13 個終止的租約中，我們正在與新租戶就其中 5 個物業的新租約進行談判，並積極進行營銷以出售或租賃其​​他 8 個物業。

Regarding Mountain Express, it remains early in the process. As of May 1, none of our 71 leases have been formally rejected by the court. However, there is a pending motion to reject 28 of the leases. We've been actively engaged with the tenant to collect past due and current rent and April rent was received for the 43 locations, not currently in front of the court. We're in discussions with potential operators to lease or buy all 71 properties.

至於 Mountain Express，目前仍處於早期階段。截至 5 月 1 日，我們的 71 份租約均未被法院正式駁回。然而，有一項拒絕其中 28 份租約的動議尚未決。我們一直在積極與租戶合作，收取逾期和當期租金，並已收到 43 個地點（目前不在法院前面）的 4 月份租金。我們正在與潛在運營商討論租賃或購買全部 71 處房產的事宜。

In March, our tenant American Car Center filed for Chapter 7 liquidation. We proactively regained possession of all 16 properties that we own that were previously leased to American car by termination of our master lease on April 13. We've been extremely active at marketing these properties and have received robust interest.

3 月份，我們的租戶美國汽車中心 (American Car Center) 申請了第七章清算。通過 4 月 13 日終止主租賃，我們主動重新獲得了我們擁有的所有 16 處房產的所有權，這些房產之前租給了 American car。我們一直非常積極地營銷這些房產，並收到了濃厚的興趣。

To date, 5 properties are already in sale negotiations, 6 properties have active leasing interest and the other 5 are being actively marketed.

迄今為止，5處房產已進入銷售談判，6處房產有活躍的租賃興趣，另外5處房產正在積極銷售。

Finally, Bed Bath & Beyond and its subsidiaries, which represent only 1.4% of our total annualized straight-line rent filed for Chapter 11 bankruptcy proceedings in April.

最後，Bed Bath & Beyond 及其子公司僅占我們 4 月份根據美國破產法第 11 章申請破產程序的年化直線租金總額的 1.4%。

Along with its subsidiaries, Bed Bath is a tenant with 19 leases at 17 of our shopping centers, totaling approximately 505,000 square feet as of March 31, 2023. These properties are in desirable locations with a lot of backfill activity, and we've been actively working with replacement tenants for these properties for some time. As of May 1, we've already signed 1 lease and 3 LOIs with another 10 LOIs submitted to replace the current tenant, who is still operating and paying rent in the space. The remaining properties are being actively marketed. Another of RTL's historic strength has been maintaining a broad and diversified portfolio. At quarter end, our $5 billion portfolio was comprised of 1,039 properties with executed occupancy plus leasing pipeline of 94.5% and up from 91.8% a year ago and weighted average remaining lease term of 7.1 years.

Bed Bath 及其子公司是我們的租戶，在我們的 17 個購物中心擁有 19 個租約，截至 2023 年 3 月 31 日，總面積約為 505,000 平方英尺。這些物業位於理想的位置，有大量回填活動，我們一直在一段時間以來，我們積極與這些房產的替代租戶合作。截至 5 月 1 日，我們已經簽署了 1 份租約和 3 份意向書，並提交了另外 10 份意向書，以取代目前仍在該空間運營並支付租金的租戶。其餘房產正在積極銷售。 RTL 的另一個歷史優勢是維持廣泛且多元化的投資組合。截至季度末，我們價值 50 億美元的投資組合由 1,039 處房產組成，已執行入住率和租賃渠道為 94.5%，高於一年前的 91.8%，加權平均剩餘租賃期為 7.1 年。

We own properties in 47 states in the District of Columbia, and our tenants operate across 39 different industries with no single state or single industry representing more than 10% of our portfolio and no tenant representing more than 4% of our portfolio based on straight-line rent.

我們在哥倫比亞特區 47 個州擁有房產，我們的租戶橫跨 39 個不同的行業，沒有一個州或一個行業占我們投資組合的 10% 以上，也沒有一個租戶占我們投資組合的 4% 以上。線路租金。

Annualized straight-line rent increased over 8% year-over-year to $374.9 million, and the square footage of our portfolio grew over 5% year-over-year to approximately 27.6 million square feet, in large part due to the acquisition we completed last year.

年化直線租金同比增長超過 8%，達到 3.749 億美元，我們的投資組合面積同比增長超過 5%，達到約 2,760 萬平方英尺，這在很大程度上是由於我們完成了收購去年。

As of the quarter end, the tenants on our single tenant portfolio were over 58.5% actual or implied investment-grade rated and 36.4% of anchor tenants in our multi-tenant portfolio or actual or implied investment-grade rated. Based on straight-line rent, 65.1% of leases across the portfolio include contractual rent increases which increased the cash that is due under the leases over time by approximately 1.1% per year on average.

截至本季度末，我們單一租戶投資組合中超過 58.5% 的租戶獲得實際或隱含投資級別評級，多租戶投資組合中 36.4% 的主力租戶獲得實際或隱含投資級別評級。根據直線租金計算，整個投資組合中 65.1% 的租賃包括合同租金上漲，隨著時間的推移，租賃到期現金平均每年增加約 1.1%。

At quarter end, 57% of our portfolio straight-line rent was derived from Sunbelt markets and over 63% of our top 20 tenants were actual or implied investment-grade rated. The necessity-based nature and high percentage of actual or implied investment-grade tenants in our portfolio, provide dependable long-term cash flows, and we believe the potential for continued rental growth remains through leasing up available space.

截至季度末，我們的投資組合直線租金的 57% 來自 Sunbelt 市場，我們的前 20 位租戶中有超過 63% 獲得實際或隱含的投資級評級。我們的投資組合中以必要性為基礎的性質以及實際或隱含的投資級租戶的高比例，提供了可靠的長期現金流，我們相信通過租賃可用空間，租金持續增長的潛力仍然存在。

At quarter end, our long-term debt had a weighted average maturity of 3.8 years and was 84% fixed rate and had weighted average interest rate of 4.4%. We proactively locked in rates during the historically low interest rate environment before rates began to rise, significantly insulating us from exposure to today's rising interest rate environment. We increased NOI and cash NOI by $10.9 million and $9.5 million, respectively, compared to the same quarter of 2022 and adjusted EBITDA grew by over 15% to $70.4 million.

截至季度末，我們的長期債務加權平均期限為 3.8 年，固定利率為 84%，加權平均利率為 4.4%。在利率開始上升之前，我們在歷史低利率環境下主動鎖定利率，從而大大避免了我們面臨當今不斷上升的利率環境的風險。與 2022 年同季度相比，我們的 NOI 和現金 NOI 分別增加了 1090 萬美元和 950 萬美元，調整後的 EBITDA 增長了 15% 以上，達到 7040 萬美元。

We've demonstrated an ability to successfully delever in the past and expect that we will do so again throughout this year. Through May 1, we disposed of $72.4 million of properties, and we have a disposition pipeline of over $100 million by contract sales price, including properties subject to purchase and sale agreements and nonbinding letters of intent and assuming all dispositions close on their contemplated terms.

我們過去已經展示了成功去槓桿化的能力，並預計今年我們將再次這樣做。截至 5 月 1 日，我們處置了 7240 萬美元的房產，按合同銷售價格計算，我們的處置渠道超過 1 億美元，其中包括受買賣協議和不具約束力意向書約束的房產，並假設所有處置均按預期條款完成。

All or a portion of the proceeds from these dispositions is expected to be used to repay debt and lower our net debt to adjusted EBITDA ratio. I'll turn it over to Jason Doyle to take us through the numbers in greater detail. Jason?

這些處置的全部或部分收益預計將用於償還債務並降低我們的淨債務與調整後 EBITDA 的比率。我將把它交給 Jason Doyle，讓我們更詳細地了解這些數字。傑森？

Thanks, Mike. The company's first quarter revenue was $113.6 million, up 19.6% from $94.9 million in the first quarter of 2022, with a net loss of $18.8 million. First quarter AFFO was $30.5 million or $0.23 per share, down $0.01 compared to the first quarter of 2022. Our first quarter 2023 FFO was $23.6 million or $0.18 per share, and NOI was $86.7 million, a 14.3% increase over the $75.8 million of NOI we reported in the first quarter of 2022.

謝謝，邁克。該公司第一季度營收為1.136億美元，較2022年第一季度的9490萬美元增長19.6%，淨虧損1880萬美元。第一季度 AFFO 為 3050 萬美元，即每股 0.23 美元，比 2022 年第一季度下降 0.01 美元。2023 年第一季度 FFO 為 2360 萬美元，即每股 0.18 美元，NOI 為 8670 萬美元，比 NOI 7580 萬美元增長 14.3%我們在 2022 年第一季度進行了報導。

As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release, supplement and Form 10-Q.

與往常一樣，GAAP 淨利潤與非 GAAP 指標的調節表可以在我們的收益發布、補充和 10-Q 表格中找到。

From a balance sheet perspective, net debt decreased to $2.7 billion in the first quarter, down $29 million from the previous quarter and had a weighted average interest rate of 4.4%. Our net debt to gross asset value was 51.5% as of the end of the first quarter. As Mike mentioned, although our net debt decreased our net debt to adjusted EBITDA ratio ticked up this quarter, to 9.6x from 9.1x last quarter.

從資產負債表來看，第一季度淨債務減少至27億美元，比上季度減少2900萬美元，加權平均利率為4.4%。截至第一季度末，我們的淨債務佔總資產價值的比例為 51.5%。正如邁克提到的，儘管我們的淨債務減少了，但本季度調整後的 EBITDA 比率有所上升，從上季度的 9.1 倍升至 9.6 倍。

Specific costs that pushed up expenses include seasonal audit expenses and professional fees of approximately $1 million. Previous quarter benefited from $1.2 million in lease termination payments and $1 million in operating expense adjustments, including a successful property tax appeal. As of March 31, the components of our debt include $448 million drawn on our credit facility, $1.8 billion of outstanding secured debt and $500 million of senior unsecured notes.

推高開支的具體成本包括季節性審計費用和約 100 萬美元的專業費用。上一季度受益於 120 萬美元的租賃終止付款和 100 萬美元的運營費用調整，其中包括成功的財產稅上訴。截至 3 月 31 日，我們的債務組成部分包括從我們的信貸額度中提取的 4.48 億美元、18 億美元的未償擔保債務和 5 億美元的高級無擔保票據。

The amount drawn under our credit facility represents the entirety of our floating rate debt. Liquidity, which is measured as undrawn availability on -- through our credit facility plus cash and cash equivalents, stood at $89.7 million. That's based on our March 31 cash balance and borrowing availability. The company distributed $28.5 million in common dividends to shareholders in the quarter or $0.21 per share. AFFO per share was $0.23. With that, I'll turn the call back to Mike for some closing remarks.

根據我們的信貸安排提取的金額代表我們的全部浮動利率債務。流動性（通過我們的信貸安排加上現金和現金等價物未提取的可用性來衡量）為 8,970 萬美元。這是基於我們 3 月 31 日的現金餘額和借款可用性。該公司本季度向股東派發普通股股息 2850 萬美元，即每股 0.21 美元。每股 AFFO 為 0.23 美元。之後，我會將電話轉回給邁克，讓他做一些結束語。

Thanks, Jason. We continue to execute on our asset management strategy with strong leasing results across the portfolio, including a 12.7% spread on our multi-tenant lease renewals in our multi-tenant portfolio. The dispositions we've completed in the pipeline of future dispositions are expected to generate net proceeds that we can use to continue reducing our net debt which has improved by over $80 million since the end of the third quarter of 2022.

謝謝，傑森。我們繼續執行資產管理策略，在整個投資組合中取得了強勁的租賃業績，包括多租戶投資組合中多租戶租賃續約利差達 12.7%。我們在未來處置中完成的處置預計將產生淨收益，我們可以用這些淨收益繼續減少我們的淨債務，自 2022 年第三季度末以來，淨債務已減少超過 8000 萬美元。

Our high-quality tenants include grocery stores, quick service restaurants and other necessity retail properties that are conveniently located between home and work and are where America shops every day. We believe we're well positioned to continue to benefit from a robust retail environment and a strong world-class portfolio. Thank you for joining us. And operator, please open the line for questions.

我們的優質租戶包括雜貨店、快餐店和其他必需品零售物業，這些物業位於家庭和工作之間，交通便利，是美國人每天購物的地方。我們相信，我們處於有利位置，可以繼續受益於強勁的零售環境和強大的世界級產品組合。感謝您加入我們。接線員，請打開線路提問。

(Operator Instructions) And our first question coming from the line of Bryan Maher with B. Riley Securities.

（操作員說明）我們的第一個問題來自 B. Riley Securities 的 Bryan Maher。

Michael and Jason. Couple of questions for me. Is there any way to kind of quantify roughly what you think that the impact of the kind of issues that you walked through might be on 2023 numbers, even assuming you're successful in kind of re-leasing or selling those assets, there's probably some downtime involved, anything you can share with us in that regard.

邁克爾和傑森。有幾個問題要問我。有沒有什麼方法可以粗略地量化您認為您所經歷的此類問題可能對 2023 年數字產生的影響，即使假設您成功地重新租賃或出售了這些資產，也可能存在一些影響涉及停機，您可以與我們分享這方面的任何信息。

At this time, no, but what I can tell you is the activity around these organizations and the interest in their properties leads us to believe that the impact is going to be minimal over the course of 2023. Burger King corporate immediately got very involved with the Tom's King situation, and they have identified 2 operators that are taking over the majority of the portfolio. So that is something that we were very glad to see. Mountain Express, it's, again, a little bit early to start giving you ideas of what's going on longer term there. If Mountain Express -- if there's going to be a transfer of operations through bankruptcy or how we're going to execute on that.

目前還沒有，但我可以告訴您的是，圍繞這些組織的活動以及對其財產的興趣使我們相信，在 2023 年期間，影響將很小。漢堡王公司立即積極參與其中Tom's King 的情況，他們已經確定了 2 家運營商將接管大部分投資組合。所以這是我們非常高興看到的事情。 《山地快車》，現在開始向您提供有關那里長期發展情況的想法還為時過早。如果Mountain Express——是否會通過破產進行業務轉移，或者我們將如何執行。

American car, as I said in my earlier comments, 16 properties that we got back, 5 are already engaged in purchase and sale agreement negotiations. 6 properties are active in lease negotiations. So again, I think the biggest takeaway in the first quarter was, here was a lot of activity, a lot of positive activity, as we talked about with the leasing and leasing pipeline, getting the portfolio occupancy up to 94.5%. And then seeing revenue increase the spreads on renewals up over 12%. So as the positives are coming in. I think we have timing before we -- some timing before we see the full impact in that, and it will be a positive offset as we finish up some of these situations that we detailed in the prepared comments.

美國汽車，正如我之前評論中所說，我們收回的16處房產中，有5處已經在進行買賣協議談判。 6處房產正在積極進行租賃談判。所以，我認為第一季度最大的收穫是，這裡有很多活動，很多積極的活動，正如我們在租賃和租賃渠道中討論的那樣，使投資組合入住率達到 94.5%。然後看到收入增加，續訂利差增加了 12% 以上。因此，隨著積極因素的出現，我認為我們有時間——在我們看到其全面影響之前的一些時間，當我們完成我們在準備好的評論中詳細說明的一些情況時，這將是一個積極的抵消。

Okay. We were a little surprised to see the volume, yes, dollar-wise, of your transaction activity, both completed and pipeline. When we look at companies that we cover in the hotel space, office industrial, I mean, those transaction markets are basically stalled. Would you characterize it being more along the lines of the assets that you're transacting -- are kind of more bite-sized properties with very specific targeted buyers as your ability to transact there? Or is there something else going on?

好的。我們有點驚訝地看到您的交易活動（無論是已完成的還是正在醞釀的）交易量（是的，以美元計算）。當我們觀察酒店領域、辦公行業的公司時，我的意思是，這些交易市場基本上陷入停滯。您是否會將其描述為更符合您正在交易的資產的特點——是一種規模較小的房產，具有非常具體的目標買家，就像您在那裡進行交易的能力一樣？還是還有其他事情發生？

No, I think that -- first of all, it's a positive to the quality of the entire portfolio. And we had identified some of these strategic disposition targets. The industry's are very solid. The tenants are very solid. And because they're leased on a longer-term basis, the buyers felt that they were insulated from changes or swings in the market. So it was very encouraging for us. We certainly don't feel that we're selling at discounts. And where we agreed to go forward, we felt that it was at full value and good for the overall strategy. So again, I just think it's an endorsement. We're seeing really strong leasing activity, new tenants coming in. We're seeing long renewals at increased rents over the expiring leases, and we're seeing the ability to dispose of some assets where we see appropriate. So again, I think is just -- it highlights what we're so excited about in the overall portfolio.

不，我認為——首先，這對整個投資組合的質量是積極的。我們已經確定了其中一些戰略部署目標。行業實力非常雄厚。租客們都很踏實。而且由於它們是長期租賃的，買家覺得他們不受市場變化或波動的影響。所以這對我們來說非常令人鼓舞。我們當然不覺得我們在打折銷售。我們同意繼續推進，我們認為這是完全有價值的，並且有利於整體戰略。再說一遍，我只是認為這是一種認可。我們看到租賃活動非常強勁，新租戶湧入。我們看到到期租約的租金上漲，長期續約，並且我們看到有能力在我們認為合適的地方處置一些資產。再說一遍，我認為這凸顯了我們對整個產品組合感到如此興奮的部分。

Okay. And just 2 more quick ones. One, Jason, as it relates to the G&A costs coming in a little bit ahead of where we were thinking, we did notice that there was seasonality kind of last year, fourth quarter '21 to first quarter 2022. Coming in here at $10.5 million, would you be disagreeable with the statement that somewhere in the mid- to high [8s] is a better run rate for G&A for the balance of the year?

好的。還有 2 個更快的。一，傑森，因為它與 G&A 成本有關，比我們想像的要早一些，我們確實注意到去年，21 年第四季度到 2022 年第一季度存在季節性。這裡的費用為 1050 萬美元，您是否不同意這樣的說法：在今年剩餘時間中，中高 [8s] 的 G&A 運行率更好？

Yes. I think if you look back on our history, you do see that seasonality in the fourth quarter and in the first quarter. So something in that range that you're talking about is probably a better estimate on a go-forward basis.

是的。我認為如果你回顧我們的歷史，你確實會看到第四季度和第一季度的季節性。因此，您所談論的這個範圍內的東西可能是未來更好的估計。

Okay. And just lastly, it seems like most of your lease expirations for this year are pretty close to being addressed is only 3% left or so 2024, 2025, you've got 8% and 9%, is -- what do you think is the prospect for getting a head start on those putting a dent in those numbers over the next couple of few quarters?

好的。最後，看起來你今年的大部分租約到期都非常接近得到解決，到 2024 年、2025 年只剩下 3% 左右，你有 8% 和 9%，你認為是什麼在接下來的幾個季度中，那些在這些數字上取得進展的人是否會取得領先優勢？

It's exactly what we historically have done and will continue to do. We start active renewal conversations about 24 months out. Some of the national retailers may choose to wait until it's a little bit closer, preferring 18- to 12-month window. But the asset management focus is on keeping the good tenants in place, making sure that we're positioned long term. And as you saw last year and first quarter of this year, we're executing on those renewals or in some cases, extensions with very attractive spreads.

這正是我們歷史上所做的並將繼續做的。我們在大約 24 個月後開始積極的續約對話。一些全國性零售商可能會選擇等到臨近的時候，更喜歡 18 到 12 個月的窗口期。但資產管理的重點是保留好租戶，確保我們的長期定位。正如您去年和今年第一季度所看到的，我們正在執行這些續約，或者在某些情況下，以非常有吸引力的價差進行延期。

First quarter at almost 13% is, again, a testament. We have been very focused over the last year, as you know, and as everybody has seen on increasing occupancy in the overall portfolio. and these are well-situated properties, primarily Sunbelt, really strategically located within the communities and the retailers don't want to lose those spaces.

第一季度近 13% 的增長率再次證明了這一點。如您所知，我們去年一直非常關注整體投資組合入住率的增加。這些都是位置優越的房產，主要是 Sunbelt，真正位於社區內的戰略位置，零售商不想失去這些空間。

So they're doing what they need to do to continue to be open and operating where their customers know they are in shopping centers that is convenient for the community shopper. And yes, we will continue to exercise those renewals and continue to grow the portfolio.

因此，他們正在做他們需要做的事情，以繼續開放並在客戶知道他們位於方便社區購物者的購物中心的地方運營。是的，我們將繼續進行這些續約並繼續擴大產品組合。

And our final questions come from the line of Mitch Germain with JMP Securities.

我們的最後一個問題來自 JMP 證券公司的米奇·傑曼 (Mitch Germain)。

I appreciate all the color on the bankruptcies and what you guys are doing to address them. It seems like Burger King was the only one that impacted the first quarter results. Is that a good way to consider that?

我很欣賞關於破產的所有色彩以及你們為解決這些問題所做的努力。漢堡王似乎是唯一影響第一季度業績的公司。這是考慮這個問題的好方法嗎？

On the properties that were rejected, the 28 properties that definitely had an impact on the first quarter, but we're -- because we took those back and we're actively marketing them. And also in the quarter with American Car Center, that was also an impact in the first quarter. But as I've talked in generalities about the activity around the American car center properties, the leasing and disposition opportunities are -- we're seeing them very clearly to be above where we purchased these properties.

對於被拒絕的房產，這 28 處房產肯定對第一季度產生了影響，但我們——因為我們收回了這些房產，並且正在積極營銷它們。在美國汽車中心的季度中，這也是第一季度的影響。但正如我一般性地談論了美國汽車中心房產周圍的活動一樣，租賃和處置機會是——我們非常清楚地看到它們高於我們購買這些房產的地方。

And with names, I can't give color at this point, Mitch, but national names, both from the rental market as well as the new car dealership level that will, I expect, be noticeable in the second quarter. I think a lot of what we were talking about this quarter is really being guided by nothing more than timing as I think we'll be very excited to report on events next quarter related to what we talked about today.

至於名字，米奇，我現在無法給出具體信息，但來自租賃市場和新車經銷商水平的全國性名字，我預計，這將在第二季度引人注目。我認為我們本季度討論的很多內容實際上只是以時間為指導，因為我認為我們將非常興奮地報告下季度與我們今天討論的內容相關的事件。

Right. I guess you mentioned that some of the mountain rent payments were on deferral. Is there a way to quantify where we stand there?

正確的。我猜你提到了一些山區租金的支付被推遲。有沒有辦法量化我們所處的位置？

That is being sorted out in their bankruptcy proceedings. The 43 locations that have not been identified as potential to be rejected in the termination or in the bankruptcy. Those 43 stores are rent paid because that's part of the proceeding. So we received the April rent, and we anticipate going forward that we'll receive the future rent into -- as this is resolved. So the majority of the locations, just to be specific, 43 of the 71, we received the full April rent payment.

這個問題正在他們的破產程序中得到解決。尚未確定有可能被終止或破產的 43 個地點。這 43 家商店已支付租金，因為這是訴訟的一部分。因此，我們收到了四月份的租金，並且我們預計未來我們將收到未來的租金——因為這個問題已得到解決。因此，大多數地點，具體來說，71 個地點中的 43 個，我們收到了 4 月份的全額租金。

Got you. Okay. You redeemed some debt post quarter, obviously, put it on the line -- is there a long-term plan for those previous mortgages?

明白你了。好的。顯然，您在季度後贖回了一些債務，顯然，將其置於危險之中 - 對於之前的抵押貸款有長期計劃嗎？

Yes, there is, and that long-term plan is to do something that looks more permanent. But I think it's pretty evident that right now is not the ideal time to put permanent debt on as the markets are still not settled. We had the capacity on the line, and we felt that this was a very smart temporary placement for this debt. And it gives us the flexibility that is important and we will continue to monitor the markets.

是的，有，而且長期計劃就是做一些看起來更持久的事情。但我認為，很明顯，由於市場尚未穩定下來，現在還不是發行永久債務的理想時機。我們有足夠的能力，我們認為這是一個非常明智的臨時債務安排。它為我們提供了重要的靈活性，我們將繼續監控市場。

I think even today, we -- this morning earlier, got some great news about what looks like a cooling of inflation and some of these things could lead to a more normal debt market. So for the time being, that was a decision we made that I think is justified.

我認為即使在今天，我們——今天早上早些時候，也得到了一些好消息，通脹似乎正在降溫，其中一些事情可能會導致債務市場更加正常。所以就目前而言，這是我們做出的一個我認為是合理的決定。

Got you. And then last for me, Imperial moved into the top tenant list -- top 10 tenant list. I know no acquisitions were made by you guys. So is that something that there was some M&A that they were involved in. Is that the way to think about it?

明白你了。最後對我來說，帝國大廈進入了頂級租戶名單——前十名租戶名單。我知道你們沒有進行任何收購。那麼他們參與了一些併購嗎？是這樣思考的嗎？

Jason, can you help me out with that because I don't see Imperial in the top 10. Am I looking at the wrong place -- I'm sorry. I'm sorry. Yes, they -- they are top 10. They're 2.6% of straight-line rent and -- I'll get back to you on that.

Jason，你能幫我解決這個問題嗎，因為我沒有看到帝國理工學院進入前十名。我是不是看錯地方了——抱歉。對不起。是的，他們 - 他們是前 10 名。他們是直線租金的 2.6％ - 我會就此回复你。

Yup. No worries.

是的。不用擔心。

It was not through acquisitions, Mitch. So it was -- it was just a natural move within the portfolio.

這不是通過收購，米奇。事實就是如此——這只是投資組合中的一個自然舉動。

Yes. I have it here, Mike. It was an IMTAA to Imperial assignments.

是的。我這裡有，邁克。這是一項 IMTAA 到帝國的任務。

Okay. Yes. So there was something that happened where they took over lease. That's what I figured, but I just wanted to -- confirm that.

好的。是的。所以他們接手租約時發生了一些事情。這就是我的想法，但我只是想確認這一點。

Yes.

是的。

And we'll actually take our next question from the line of Barry Oxford with Colliers.

實際上，我們將從 Barry Oxford 和 Colliers 那裡提出下一個問題。

Real quick, just getting back to the Mountain Express on the 43 leases. Do you -- and this might be too speculative to answer, but do you think most of those 43 will be affirmed or look -- Barry, just too speculative at this particular juncture, because it's got to be a good sign that they're paying April rent. That's why I'm asking.

真快，剛剛回到 43 個租賃的 Mountain Express。你是否——這可能太投機了，無法回答，但你認為這 43 人中的大多數會得到確認嗎？或者看起來——巴里，在這個特定的時刻太投機了，因為這一定是一個好兆頭，表明他們正在支付四月份的租金。這就是我問的原因。

Yes. And I just can't -- it's not that I don't want to speculate. I just don't know. I have every reason to be optimistic, but this is a process. And I can't comment on it right now, because of the bankruptcy, but I will tell you that we are very engaged in the creditors' trust process, and we are firmly at the table and we'll continue to work to resolve this, frankly, in the best possible way for our property ownership and our shareholders.

是的。我就是不能——並不是我不想猜測。我只是不知道。我有充分的理由保持樂觀，但這是一個過程。由於破產，我現在無法對此發表評論，但我會告訴你，我們正在積極參與債權人的信託程序，我們堅定地坐在談判桌上，我們將繼續努力解決這個問題坦率地說，以對我們的財產所有權和股東來說最好的方式。

Great. As you go through the re-leasing process of some of the properties that you get back, is there some embedded mark-to-market that could actually benefit shareholders once you go through the normal lease-up time?

偉大的。當你經歷一些收回的房產的重新租賃過程時，是否有一些嵌入的按市價計價，一旦你經歷了正常的租賃時間，實際上可以使股東受益？

I would always -- I would say that there is a opportunity, especially in the quick service restaurant sector to see that type of pickup. American cars, as I've already commented, we're seeing interest that is consistently above where we acquired the properties or where we had leased the properties. When we market, we market for sale or lease so that we can attract the most possible interest and really negotiate every opportunity. So as we've continued to focus on leasing spreads with renewals, as we've continued to drive occupancy and we're seeing the growth in our revenue. We were up almost 20% over last year on revenue. Cash NOI was up about 13% over last year. So yes, the value of this type of real estate is the location. That's a part of the underwriting. When we're acquiring, and we are very optimistic about the opportunities here. And I just thought that because there were some moving pieces this quarter, I wanted to spend the time and lay this out with the tenants like Tom's King, Mountain Express, et cetera. So that -- those that -- look deeply at the portfolio can see things like you're asking. That there is opportunity here, and being very engaged and aggressive from an asset management standpoint, we will continue to backfill and continue the revenue from these properties. It's obviously they're desirable as at the same time, we'll continue to focus on the continued occupancy of the overall portfolio, which is a great driver of revenue -- of revenue of NOI and of course, earnings.

我總是會說，有機會看到這種類型的接送服務，特別是在快餐服務行業。正如我已經評論過的那樣，美國汽車的興趣始終高於我們購買房產或租賃房產的地方。當我們進行營銷時，我們會進行銷售或租賃營銷，以便吸引最大可能的興趣並真正談判每一個機會。因此，隨著我們繼續關注續租的租賃利差，隨著我們繼續提高入住率，我們看到了收入的增長。我們的收入比去年增長了近 20%。現金 NOI 比去年增長約 13%。所以，是的，此類房地產的價值在於位置。這是承保的一部分。當我們進行收購時，我們對這裡的機會非常樂觀。我只是想，因為本季度有一些變動，所以我想花時間與 Tom's King、Mountain Express 等租戶一起解決這個問題。因此，那些深入研究投資組合的人可以看到像您所問的那樣的事情。這裡存在機會，並且從資產管理的角度非常積極和積極，我們將繼續回填並繼續從這些物業中獲得收入。顯然它們是可取的，同時我們將繼續關注整個投資組合的持續佔用，這是收入的巨大推動力——NOI 的收入，當然還有收益。

And we have reached the end of the question-and-answer session. I'll now turn the call back over to Michael Weil for closing remarks.

我們的問答環節已經結束了。現在我將把電話轉回給邁克爾·威爾（Michael Weil），讓其致閉幕詞。

Great. Well, thank you all very much for your time this morning. I know it's a busy part of the year for you. We will continue to proactively report on the success we have in the portfolio. We think that the activity for 2023 is going to really put the company in an even better position. We will achieve the goals that we have highlighted. And frankly, I couldn't express the success that we're having in the lease-up of the portfolio, and we expect that to continue throughout 2023.

偉大的。好的，非常感謝大家今天早上抽出寶貴的時間。我知道今年對你來說是忙碌的一段時間。我們將繼續積極報告我們在產品組合中取得的成功。我們認為 2023 年的活動確實會讓公司處於更好的位置。我們將實現我們強調的目標。坦率地說，我無法表達我們在投資組合租賃方面所取得的成功，我們預計這種情況將持續到 2023 年。

And as you all know, that will unlock some great embedded value in the portfolio. So thank you all, and we'll continue to keep you posted.

眾所周知，這將釋放投資組合中一些巨大的內在價值。謝謝大家，我們將繼續向您通報情況。

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，大家可以掛斷電話了。感謝您的參與。