STORE Capital Corp (STOR) 2022 Q2 法說會逐字稿

Good morning, and welcome to the STORE Capital Second Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

早安，歡迎參加 STORE Capital 2022 年第二季財報電話會議。 （操作員指示）請注意，此事件正在被記錄。

I'd now like to turn the conference over to Megan McGrath, Investor Relations for STORE Capital. Please go ahead.

現在，我想將會議交給 STORE Capital 投資者關係部門的 Megan McGrath。請繼續。

Thank you, operator, and thank you all for joining us today to discuss STORE Capital's Second Quarter 2022 Financial Results.

謝謝接線員，也謝謝大家今天加入我們討論 STORE Capital 2022 年第二季財務表現。

We issued our earnings release along with our earnings supplement and quarterly investor presentation after the market closed yesterday. These documents are available in the Investor Relations section of our website at ir.storecapital.com under News & Results, Quarterly Results.

我們在昨天市場收盤後發布了收益報告、收益補充報告和季度投資者報告。這些文件可在我們網站 ir.storecapital.com 的「投資者關係」部分的「新聞與業績」和「季度業績」下找到。

I'm here today with Mary Fedewa, President and Chief Executive Officer of STORE; Sherry Rexroad, Chief Financial Officer; Craig Barnett, EVP of Underwriting and Portfolio Management; and Tyler Maertz, EVP of Acquisitions.

今天我和 STORE 總裁兼執行長 Mary Fedewa 一起來到這裡； Sherry Rexroad，財務長；承保及投資組合管理執行副總裁 Craig Barnett；以及收購執行副總裁 Tyler Maertz。

On today's call, management will provide prepared remarks, and then we will open up the call for your questions. In order to maximize participation while keeping our call to 1 hour, we will be observing a 2-question limit during the Q&A portion of the call. Participants can then reenter the queue if you have follow-up questions.

在今天的電話會議上，管理層將提供準備好的發言，然後我們將開始回答您的問題。為了最大限度地提高參與度，同時將通話時間控制在 1 小時以內，我們將在通話的問答部分限制 2 個問題。如果有後續問題，參與者可以重新進入隊列。

Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate or other comparable words and phrases.

在我們開始之前，我想提醒您，今天的評論將包括聯邦證券法下的前瞻性陳述。前瞻性陳述以諸如將、是、打算、相信、期望、預期或其他類似的詞語和短語來表示。

Statements that are not historical facts, such as statements about our expected acquisitions, dispositions or our AFFO per share guidance for 2022 are also forward-looking statements. Our actual financial condition and results of operations may vary materially from these contemplated by such forward-looking statements.

非歷史事實的陳述，例如有關我們預期的收購、處置或 2022 年每股 AFFO 指引的陳述也屬於前瞻性陳述。我們的實際財務狀況和經營業績可能與此類前瞻性陳述所預期的大不相同。

Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including our reports on Form 10-K and Form 10-Q.

有關可能導致我們的結果與這些前瞻性陳述有重大差異的因素的討論包含在我們向美國證券交易委員會提交的文件中，包括我們的 10-K 表和 10-Q 表報告。

With that, I would now like to turn the call over to Mary Fedewa, STORE's Chief Executive Officer. Mary, please go ahead.

說完這些，我現在想將電話轉給 STORE 的執行長 Mary Fedewa。瑪麗，請說。

Thank you, Megan. Good morning, everyone. Welcome, and thank you for joining us today. I'll begin the call with an overview of our second quarter performance and some thoughts on the current market environment. Craig will provide an update on our portfolio and then Sherry will review our financial results. We will then open the call up to questions.

謝謝你，梅根。大家早安。歡迎您，感謝您今天加入我們。我將在電話會議上概述我們第二季的業績以及對當前市場環境的一些看法。克雷格 (Craig) 將提供我們投資組合的最新情況，然後雪莉 (Sherry) 將審查我們的財務結果。然後我們將開始回答問題。

In the second quarter, we acquired $392 million in profit center real estate, bringing our year-to-date acquisitions to over $900 million. Although the transactions we closed this quarter were largely negotiated a few months ago, we are pleased with our success in driving both higher cap rates and higher lease escalations. Second quarter cap rates were up 10 basis points to 7.2% from the first quarter and lease escalations increased from 1.8% on first quarter acquisitions to 2% in the second quarter.

第二季度，我們收購了價值 3.92 億美元的利潤中心房地產，使今年迄今的收購總額超過 9 億美元。儘管我們本季完成的交易大部分是在幾個月前談判完成的，但我們對成功推動更高的資本化率和更高的租賃升級感到滿意。第二季的資本化率較第一季上升 10 個基點至 7.2%，租賃上漲率從第一季收購時的 1.8% 上升至第二季的 2%。

In addition, from a credit perspective, the acquisitions we made in the quarter improved our already strong portfolio. Craig will touch on this in his remarks.

此外，從信貸角度來看，我們在本季進行的收購進一步增強了我們原本強大的投資組合。克雷格將在他的演講中談到這一點。

We delivered solid AFFO per share of $0.58 for the quarter, which is a 16% increase year-over-year. Our strong performance is a result of our healthy first half acquisition pace, the excellent performance of our portfolio and tailwinds relating to the recovery from the pandemic. These tailwinds include both strong rent deferral repayments and lower-than-anticipated property costs. Based on our year-to-date results, we are raising our AFFO per share guidance to a range of $2.25 to $2.27, up from a range of $2.20 to $2.23. At the midpoint, this updated guidance represents greater than 10% growth over 2021. Sherry will discuss guidance in more detail in her remarks.

本季度，我們的每股 AFFO 穩定達到 0.58 美元，年成長 16%。我們的強勁表現得益於上半年健康的收購步伐、投資組合的出色表現以及與疫情後復甦相關的順風因素。這些順風因素包括強勁的租金延期償還和低於預期的房地產成本。根據我們今年迄今的業績，我們將每股 AFFO 預期從 2.20 美元至 2.23 美元上調至 2.25 美元至 2.27 美元。從中點來看，更新後的指引比 2021 年增加了 10% 以上。

Now I would like to address how STORE's unique business model allows us to fund accretive acquisitions and maintain attractive spreads to deliver solid risk-adjusted returns in this and almost any economic environment.

現在，我想談談 STORE 獨特的商業模式如何使我們能夠為增值收購提供資金並保持有吸引力的利差，從而在當前以及幾乎任何經濟環境中提供可觀的風險調整回報。

First, the market we address is large, and we have plenty of runway for growth. Therefore, we take a very selective approach to the investments we make.

首先，我們面對的市場很大，而且我們擁有充足的成長空間。因此，我們對投資採取非常謹慎的態度。

Second, our unique direct origination model makes us a price setter in our market as opposed to a price taker. This is a very important distinction. It allows us to price new leases every day at cap rates that help us maintain these attractive spreads.

其次，我們獨特的直接發起模式使我們成為市場的價格製定者，而不是價格接受者。這是一個非常重要的區別。它使我們能夠每天以資本化利率對新租約進行定價，從而幫助我們維持這些有吸引力的利差。

Third, the financing flexibility we built into our model over the past decade positions us to optimize our cost of capital so we can make accretive acquisitions. We have 3 sources of long-term debt financing: our Master Funding Program; our investment-grade unsecured public debt; and our unsecured bank term debt. This provides us multiple avenues for raising debt capital as market conditions change. In addition, we have access to our ATM facility to accretively fund acquisitions.

第三，我們在過去十年中在模型中建立的融資靈活性使我們能夠優化資本成本，從而進行增值收購。我們有 3 個長期債務融資來源：我們的主融資計劃；我們的投資等級無擔保公共債務；以及我們的無擔保銀行定期債務。這為我們隨著市場條件的變化籌集債務資本提供了多種途徑。此外，我們還可以利用我們的 ATM 設施為收購提供增值資金。

Although we are mindful of the current macroeconomic environment, we are operating in a large and underserved market. Regardless of external factors, we are confident that there are many strong and prospering businesses that will need and can benefit from the real estate financing solutions our unique business model can provide.

儘管我們關注當前的宏觀經濟環境，但我們的市場規模龐大且服務不足。無論外部因素如何，我​​們相信許多強大而繁榮的企業將需要並能從我們獨特的商業模式所提供的房地產融資解決方案中受益。

And as we have mentioned in the past, we often see great opportunity in times of market dislocation, and STORE is prepared to capitalize on every opportunity.

正如我們過去提到的那樣，我們常常在市場混亂時期看到巨大的機遇，而 STORE 已準備好利用每一個機會。

Before I turn the call over to Craig, I would like to provide some color on the current acquisition market.

在我將電話轉給 Craig 之前，我想先介紹一下目前的收購市場。

As you may have heard from others, the market did experience a pause in the beginning of the second quarter as buyers and sellers adjusted to the rapidly changing economic environment. Even with this market volatility, our team continued to knock on doors, speaking with both customers and prospects. We were in the market evaluating and closing transactions consistently throughout the quarter.

您可能從其他人那裡聽說，由於買家和賣家適應快速變化的經濟環境，市場在第二季初確實經歷了停頓。即使市場動盪，我們的團隊仍堅持挨家挨戶敲門，與客戶和潛在客戶交談。整個季度我們都在市場上持續評估和完成交易。

Regarding cap rates, we believe they bottomed earlier in the year, and we are now experiencing steady upward movement. Our recent letters of intent have cap rates in the 7.5% to 7.75% range. And while we do not fund every letter of intent, this is a good indication that our team is successfully negotiating higher cap rates, which we expect to see the benefit of in the second half of the year.

至於資本化率，我們認為今年稍早已觸底，目前正經歷穩定上升的趨勢。我們最近的意向書的資本化率在 7.5% 到 7.75% 之間。儘管我們不會為每一封意向書提供資金，但這很好地表明我們的團隊正在成功協商更高的資本化利率，我們預計將在今年下半年看到其好處。

In addition to higher cap rates, we are also successfully driving higher annual lease escalations, many consistently in the 2% to 2.5% range. Importantly, we are not sacrificing cap rates for rent escalations or vice versa. And in most cases, we are seeing upward momentum in both metrics.

除了更高的資本化率之外，我們還成功推動了年度租賃價格上漲，許多價格始終保持在 2% 至 2.5% 的範圍內。重要的是，我們不會為了提高租金而犧牲資本化率，反之亦然。在大多數情況下，我們看到這兩個指標都呈現上升勢頭。

Regarding the competitive landscape, we believe that some of the more recent levered market participants have become less competitive and the alternatives for prospects have become less attractive. This only enhances the opportunity set for STORE.

關於競爭格局，我們認為，一些近期槓桿化的市場參與者的競爭力已減弱，前景的替代方案也變得不那麼有吸引力。這只會增強 STORE 的機會。

To summarize, the STORE team is doing an outstanding job leveraging our differentiated and proven business model to help our customers and prospects during these evolving market conditions. Our business is resilient and nimble as demonstrated throughout our 11-year history.

總而言之，STORE 團隊正在利用我們差異化且經過驗證的商業模式在不斷變化的市場條件下為我們的客戶和潛在客戶提供出色的幫助。正如我們 11 年的發展歷史所證明的，我們的業務具有彈性和靈活性。

Based on our results for the first half of the year, our strong pipeline of new opportunities, the performance of our portfolio and our ongoing conversations with customers and prospects, I am confident that we can deliver attractive risk-adjusted returns to our shareholders in 2022 and beyond.

根據我們上半年的業績、強大的新機會管道、產品組合的表現以及與客戶和潛在客戶的持續對話，我相信我們能夠在 2022 年及以後為股東帶來頗具吸引力的風險調整後回報。

Now I will turn the call over to Craig to discuss the portfolio.

現在我將把電話轉給 Craig 來討論投資組合。

Thank you, Mary. During the second quarter, we acquired 62 new properties and added 11 new customers.

謝謝你，瑪麗。第二季度，我們收購了 62 處新房產，增加了 11 位新客戶。

Our new investment activity continued to be granular and diverse with an average deal size of approximately $12 million. Our second quarter investments span 20 different industries, including car washes and auto service, food processing and specialty manufacturers serving various end markets which reflects our strategy of investing in diverse, vital businesses that have sustainable growth profiles.

我們的新投資活動持續細緻而多樣，平均交易規模約為 1,200 萬美元。我們第二季的投資涵蓋 20 個不同的行業，包括洗車和汽車服務、食品加工和服務於各個終端市場的專業製造商，這反映了我們投資具有可持續增長特徵的多元化、充滿活力的業務的策略。

Repeat business has always been an important source of growth for STORE and approximately 40% of our second quarter acquisition volume was with existing customers. These customers value their direct relationships with STORE as well as a reliability of execution we provide, which has become especially important in today's financing marketplace.

回頭業務一直是 STORE 的重要成長來源，我們第二季約 40% 的收購量來自現有客戶。這些客戶重視他們與 STORE 的直接關係以及我們提供的執行可靠性，這在當今的融資市場中變得尤為重要。

With our direct origination approach, we continue to create strong lease contracts. Our second quarter acquisitions had a weighted average 4-wall unit coverage of 6.2x, improving our already strong portfolio coverage of 4.7x. The acquisitions had a long weighted average lease term of 18 years. Nearly all multiunit transactions had master leases and we will receive unit-level reporting on 100% of the new assets we acquired.

透過我們的直接發起方式，我們繼續創建強而有力的租賃合約。我們第二季的收購的加權平均 4 牆單位覆蓋率為 6.2 倍，將我們原本強大的投資組合覆蓋率提高到了 4.7 倍。此次收購的加權平均租賃期限長達 18 年。幾乎所有的多單元交易都有主租賃，我們將收到有關我們收購的 100％ 新資產的單元級報告。

We sold 13 properties in the second quarter. Nine were performing properties sold at a cap rate of 6.4% that netted $44 million in proceeds, yielding a 31% gain over our original investment. The remaining 4 were nonperforming properties that were sold as part of our ongoing property management activities. These sales netted $21 million in proceeds or 92% recovery of our original investment.

我們在第二季出售了 13 處房產。其中九處為業績表現優異的物業，以 6.4% 的資本化率出售，淨收益 4,400 萬美元，比我們最初的投資收益高出 31%。其餘 4 處為不良物業，作為我們正在進行的物業管理活動的一部分出售。這些銷售淨收益為 2,100 萬美元，回收了我們原始投資的 92%。

Now turning to our portfolio. At quarter end, our portfolio remained highly diversified with 3,012 properties operated by 579 customers across 124 industries. Our sector mix was consistent with the service sector representing 64%, manufacturing 21% and service-oriented retail 15% of the portfolio.

現在轉向我們的投資組合。截至季末，我們的投資組合仍高度多元化，共有 3,012 處房產由 124 個產業的 579 位客戶經營。我們的產業結構一致，服務業佔投資組合的 64%，製造業佔 21%，服務型零售佔 15%。

The granularity of our portfolio is a key component of our strategy and a differentiator for STORE. Top 10 customers account for less than 18% of base rent and interest, with our largest customer representing less than 3% of base rent and interest. In addition, 98% of our customers individually represent less than 1% of our base rent and interest.

我們的產品組合的精細度是我們策略的關鍵組成部分，也是 STORE 的差異化因素。前十大客戶所佔基本租金和利息不到18%，其中我們最大的客戶所佔基本租金和利息不到3%。此外，98% 的客戶單獨承擔的租金和利息不到我們基本租金和利息的 1%。

We are confident that our portfolio will perform throughout various economic cycles for several reasons. STORE has purposely built a diverse and granular portfolio of profit center real estate in vital and essential industries to limit volatility and deliver consistent cash flow.

由於多種原因，我們有信心我們的投資組合將在各個經濟週期中表現出色。 STORE 特意在重要和必需行業中建立了多樣化、精細化的利潤中心房地產組合，以限制波動性並實現穩定的現金流。

Through our disciplined credit and real estate underwriting, we have handpicked our customers and properties. We enter into long-term relationships with our customers, so we underwrite their ability to operate successfully in many economic environments.

透過我們嚴格的信用和房地產承保，我們精心挑選了我們的客戶和房產。我們與客戶建立了長期的合作關係，因此我們保證他們在許多經濟環境中成功運作的能力。

Our customers are seasoned regional and national operators. They have been in business for an average of 26 years, so they have already navigated through a variety of market cycles. We talk to our customers on a regular basis and have insight into their financial performance and the profitability of our properties.

我們的客戶是經驗豐富的地區和國家營運商。他們的平均經營時間為26年，因此他們已經經歷過各種市場週期。我們定期與客戶溝通，了解他們的財務表現和我們資產的獲利能力。

Additionally, we leverage the vast amount of data we have accumulated over the past decade to inform our underwriting and investment decision and to monitor the real-time health of our portfolio.

此外，我們利用過去十年積累的大量數據來為我們的承保和投資決策提供信息，並監控我們投資組合的即時健康狀況。

Our customers are currently in a solid financial position. They have stronger balance sheets, lower leverage and more cash available as compared to pre-pandemic periods. This means our tenants are better prepared than ever to weather potential volatility ahead and translates into greater margins of safety for STORE in the form of higher corporate and unit-level coverages.

我們的客戶目前財務狀況穩健。與疫情前相比，他們的資產負債表更加強勁、槓桿率更低、可用現金更多。這意味著我們的租戶比以往任何時候都更有準備應對未來的潛在波動，並以更高的公司和單位級覆蓋率為 STORE 帶來更大的安全邊際。

We are proud of the portfolio we have purposely built, with the goal of delivering consistent, attractive risk-adjusted returns to our shareholders over time. We are confident that it will continue to perform as we navigate changing market conditions.

我們對自己精心打造的投資組合感到自豪，我們的目標是隨著時間的推移為股東帶來持續、有吸引力的風險調整回報。我們相信，隨著市場條件不斷變化，它將繼續發揮作用。

I'll now turn the call over to Sherry.

我現在將電話轉給雪莉。

Thank you, Craig. Today, I will discuss our financial results for the second quarter including a review of our balance sheet, capital markets activity and an update of our 2022 guidance. Please note that all comparisons are year-over-year, unless otherwise noted.

謝謝你，克雷格。今天，我將討論我們第二季的財務業績，包括對我們的資產負債表、資本市場活動的審查以及 2022 年指引的更新。請注意，除非另有說明，所有比較均為同比比較。

Our second quarter revenues increased nearly 17% to $224 million, up from $192 million. This gain was largely driven by strong growth in our real estate portfolio, which totaled $11.4 billion at quarter end, up from $10 billion a year ago.

我們第二季的營收從 1.92 億美元成長近 17% 至 2.24 億美元。這一成長主要得益於我們房地產投資組合的強勁成長，該投資組合在季度末總額為 114 億美元，高於去年同期的 100 億美元。

Revenue from net acquisition activity included only a partial contribution from second quarter acquisitions since over half of the almost $400 million of our second quarter volume was closed in June. This sets us up nicely for continued growth in the second half of the year.

淨收購活動產生的收入僅包括第二季收購的部分貢獻，因為我們第二季近 4 億美元的交易中有一半以上是在 6 月完成的。這為我們下半年的持續成長奠定了良好的基礎。

Turning now to expenses. Interest expense increased by $4.2 million, primarily reflecting the net additional borrowings we made late last year and in April of this year to support growth in our real estate portfolio, partially offset by a lower overall cost of debt. The weighted average interest rate on our long-term debt was just over 3.8% as of June 30, down from 4.1% a year ago.

現在談談費用。利息支出增加了 420 萬美元，主要反映了我們去年年底和今年 4 月為支持房地產投資組合的增長而進行的淨額外借款，但整體債務成本的降低部分抵消了這一影響。截至 6 月 30 日，我們的長期債務加權平均利率略高於 3.8%，低於一年前的 4.1%。

Property costs were $2.3 million for the second quarter, down from $5.2 million. Excluding amounts reimbursed by our tenants, property costs for the 12 months ended June 30 represented about 9 basis points of our average portfolio assets, down from 16 basis points from the year ago period. As reflected in these results, our portfolio is healthy and property costs have returned to pre-pandemic levels.

第二季的房地產成本為 230 萬美元，低於 520 萬美元。不包括租戶償還的金額，截至 6 月 30 日的 12 個月的房地產成本約占我們平均投資組合資產的 9 個基點，低於去年同期的 16 個基點。從這些結果可以看出，我們的投資組合狀況良好，房地產成本已恢復到疫情前的水準。

Second quarter G&A expenses decreased slightly to $15.9 million from $16.1 million in the second quarter. On a rolling 12-month basis, G&A expenses, excluding noncash stock-based compensation, were 44 basis points of average portfolio assets for the period ended June 30, 2022. This compares to 46 basis points for the same period last year. This reduction in G&A expenses reflects the efficiencies we are gaining as our platform scales.

第二季的一般及行政開支從上一季的 1,610 萬美元小幅下降至 1,590 萬美元。以連續 12 個月計算，截至 2022 年 6 月 30 日的一般及行政開支（不包括非現金股票薪酬）佔平均投資組合資產的 44 個基點。一般及行政費用的減少反映了我們平台規模擴大後效率的提升。

The $5.3 million impairment provision we recognized in the second quarter is related to the properties that we are likely to sell. Our strong and healthy portfolio, as well as the tailwinds Mary mentioned, delivered AFFO of $164 million, up from $136 million in the year ago quarter. On a per share basis, AFFO increased 16% to $0.58 per basic and diluted share compared to $0.50 a year ago. As you know, we declared a second quarter 2022 dividend of $0.385 per share, which we paid on July 15 to shareholders of record on June 30.

我們在第二季確認的 530 萬美元減損準備與我們可能出售的房產有關。我們強大而健康的投資組合以及瑪麗提到的順風因素帶來了 1.64 億美元的 AFFO，高於去年同期的 1.36 億美元。以每股計算，AFFO 成長 16% 至每股基本和稀釋後 0.58 美元，而去年同期為 0.50 美元。如您所知，我們宣布 2022 年第二季股息為每股 0.385 美元，並於 7 月 15 日向 6 月 30 日登記在冊的股東支付。

Now turning to our balance sheet and recent capital markets activity. We funded our second quarter acquisitions with a combination of cash from operations, proceeds from both property sales and the issuance of the bank term loans in April as well as the sale of equity through our ATM program.

現在來談談我們的資產負債表和最近的資本市場活動。我們第二季的收購資金來自經營活動現金、四月房地產銷售收入、銀行定期貸款發放收入、以及透過 ATM 計畫出售股權所得。

During the quarter, we issued approximately 3.1 million shares of common stock under our ATM program at an average price of $27.52 per share raising net equity proceeds of $83 million, bringing our year-to-date proceeds to approximately $250 million at an average price of $29.38.

在本季度，我們根據 ATM 計劃發行了約 310 萬股普通股，平均價格為每股 27.52 美元，籌集了 8,300 萬美元的淨股本收益，使我們年初至今的收益達到約 2.5 億美元，平均價格為 29.38 美元。

We continuously evaluate our funding sources to optimize 3 main variables: one, our cost of funds and spreads; two, fit to our maturity ladder; and three, financial flexibility, for example, whether we can prepay without penalty. As we discussed on our first quarter earnings call, we entered into $600 million of unsecured variable rate bank term loans in April and used interest rate swap agreements to convert the variable rates on this debt to an attractive weighted average fixed rate of 3.68%. We used a portion of the proceeds from this transaction to prepay without penalty $134 million in STORE Master Funding notes that had a coupon of 5% and paid down the outstanding borrowings on our revolving credit facility as well.

我們不斷評估我們的資金來源，以優化三個主要變數：一、我們的資金成本和利差；二、適合我們的成熟度階梯；第三，財務彈性，例如，我們是否可以提前付款而不受罰金。正如我們在第一季財報電話會議上所討論的那樣，我們在 4 月簽訂了 6 億美元無擔保浮動利率銀行定期貸款，並使用利率互換協議將這筆債務的浮動利率轉換為有吸引力的 3.68% 的加權平均固定利率。我們利用此交易的部分收益無償預付了價值 1.34 億美元的 STORE Master Funding 票據（票面利率為 5%），並償還了循環信貸額度中的未償還借款。

We feel good about this unsecured debt transaction. It fits nicely into our debt maturity schedule and provides us with liquidity to fund growth. In addition, this recent term loan agreement allows for us to make additional term loan borrowings, which gives us another flexible option to evaluate as we continue to optimize our capital structure to support profitable growth.

我們對這筆無擔保債務交易感到滿意。它非常符合我們的債務到期計劃，並為我們提供了資金成長所需的流動性。此外，最近的定期貸款協議允許我們進行額外的定期貸款借款，這為我們繼續優化資本結構以支持獲利成長提供了另一個靈活的評估選擇。

At June 30, we had $4.7 billion of long-term fixed rate debt outstanding with a weighted average maturity of 6.4 years and a weighted average interest rate of just over 3.8%. Leverage is at the low end of our target range at 5.7x net debt to EBITDA on a run rate basis or about 41% on a net-debt-to-portfolio cost basis.

截至 6 月 30 日，我們有 47 億美元的長期固定利率債務未償還，加權平均期限為 6.4 年，加權平均利率略高於 3.8%。槓桿率處於我們目標範圍的低端，以運行率計算，淨債務與 EBITDA 比率為 5.7 倍，或以淨債務與投資組合成本之比計算，約為 41%。

We closed the quarter with a strong balance sheet and ample access to capital, including $31 million in cash, $555 million of immediate borrowing capacity available on our unsecured revolving credit facility as well as plenty of room under our ATM program.

我們在本季結束時擁有強勁的資產負債表和充足的資本，包括 3,100 萬美元的現金、5.55 億美元的無擔保循環信貸額度下的即時借貸能力以及 ATM 計劃下的充足空間。

Now turning to guidance. As Mary said, we are raising our annual AFFO per share guidance based on our strong second quarter results. Our pipeline of new investment opportunities, the continuing solid performance of our portfolio, and efficiencies in our cost as well as tailwinds from the pandemic recovery we are raising our 2022 AFFO per share guidance to a range of $2.25 to $2.27, which represents 9.8% to 10.7% growth over our 2021 AFFO per share.

現在轉向指導。正如瑪麗所說，根據第二季度強勁的業績，我們提高了年度每股 AFFO 指引。我們擁有眾多新的投資機會、投資組合持續穩健的表現、成本效率的提高以及疫情復甦的有利因素，我們將 2022 年每股 AFFO 指引上調至 2.25 美元至 2.27 美元的範圍，比 2021 年每股 AFFO 增長 9.8% 至 10.7%。

Our 2022 acquisition volume guidance net of anticipated sales is unchanged at $1.3 billion to $1.5 billion. We expect cap rates for the year to be at the higher end of our guidance range of 7% to 7.2%.

我們 2022 年的收購量指導淨額（扣除預期銷售額）維持不變，為 13 億美元至 15 億美元。我們預計今年的資本化率將達到我們指導範圍 7% 至 7.2% 的高端。

With that, I will turn the call back to Mary.

說完這些，我就把電話轉回給瑪莉。

Thank you, Sherry. As you know, our Board regularly reviews our dividend policy and considers raising it at least annually based on our results. We have maintained our quarterly dividend at $0.385 for 4 quarters now. That, along with our historically low dividend payout ratio and our strong AFFO growth, you can anticipate that our Board will be considering a dividend increase as we complete our third quarter.

謝謝你，雪莉。如您所知，我們的董事會定期審查我們的股利政策，並根據我們的業績考慮至少每年提高一次股利。我們已連續 4 個季度將季度股息維持在 0.385 美元。再加上我們歷史性的低股息支付率和強勁的 AFFO 成長，您可以預期，我們的董事會將在第三季結束時考慮增加股息。

With that, we will now open the call to your questions.

現在，我們將開始回答你們的問題。

(Operator Instructions) Our first question will come from Wes Golladay with Baird.

（操作員指示）我們的第一個問題來自 Baird 的 Wes Golladay。

I have a question on your conversations with tenants. Are they seeing -- I guess, how would you characterize their feelings maybe versus a quarter ago? Are they concerned about a slowdown, price pressure? Or conversely, are they more opportunistic now that they can probably grow faster and take advantage of some maybe weaker peers?

我對您與租戶的談話有一個疑問。他們看到嗎——我想，與一個季度前相比，您會如何描述他們的感受？他們是否擔心經濟放緩、價格壓力？或者相反，他們現在是否更具機會主義精神，因為他們可能發展得更快，並能利用一些可能實力較弱的同行？

Wes, this is Craig. I would say the prevailing sentiment right now continues to be optimism. I'd say they characterize the financial outlook for their business as good or excellent.

韋斯，這是克雷格。我想說，目前的主流情緒仍然是樂觀。我想說他們將其業務的財務前景描述為良好或優秀。

Obviously, they're mindful of the uncertainties around the overall the economy, but they are still investing in growth, and they have confidence in the second half of 2022. I mean backlogs are robust. Demand for services remains high. These supply chain issues have subsided somewhat. And from an economy standpoint, consumer spending is still healthy. We still have a robust labor market and consumer -- the consumer is still healthy. But we're obviously thoughtful of how that continues to play out.

顯然，他們意識到了整體經濟的不確定性，但他們仍在投資成長，並且對 2022 年下半年充滿信心。服務需求依然旺盛。這些供應鏈問題目前已緩解。從經濟角度來看，消費支出仍然健康。我們仍然擁有強勁的勞動力市場和消費者——消費者仍然健康。但我們顯然正在思考這件事將如何繼續發展。

Okay. And then it sounds like everything is back to normal from a tenant perspective. When we look at that $908 million annual cash rent, what should we say is the amount of tenants on cash basis accounting still?

好的。從租戶的角度來看，聽起來一切都恢復正常了。當我們看到每年 9.08 億美元的現金租金時，我們應該說以現金基礎會計計算的租戶數量仍然是多少？

Okay. So cash basis of tenants are about 1.5% of the portfolio. We do receive cash payments from them, which brings it down to about 80 basis points.

好的。因此，租戶的現金基礎約佔投資組合的 1.5%。我們確實從他們那裡收到了現金支付，這使得利率降至約 80 個基點。

Our next question will come from Linda Tsai with Jefferies.

我們的下一個問題來自 Jefferies 的 Linda Tsai。

In terms of the 7.7% to 7.5% cap rates you're seeing for the ones under LOI, any color you can share regarding the tenant types or price points where you're seeing the largest increases?

就您所看到的 LOI 下的 7.7% 到 7.5% 的資本化率而言，您可以分享一下租戶類型或價格點的詳細情況，看看其中的漲幅有多大？

So Linda, this is Mary. We're actually seeing increase in cap rates across all sectors. So it's pretty broad.

琳達，這是瑪莉。我們實際上看到所有產業的資本化率都在上升。所以它的範圍相當廣泛。

Got it. And then I know you said that the cap rate guidance, you guys would come in at the upper end of that. But just given the increases, just wondering why you didn't raise the cap rate guidance even more.

知道了。然後我知道您說過，資本化率指導價會處於該指導價的上限。但考慮到這些成長，我只是想知道為什麼你沒有進一步提高資本化率指引。

So Linda, this is Mary again. As it relates to guidance, we're halfway through the year. The portfolio halfway through the year is at about 7.13%. And we look to do better, but a large part of what was closed in the first quarter and the second quarter was negotiated at some of the lowest cap rates out there.

琳達，我又是瑪莉。就指導而言，我們已經度過了今年的一半。今年中期投資組合報酬率約7.13%。我們希望做得更好，但第一季和第二季完成的大部分交易都是以最低的資本化率談判的。

So it's just going to take some time for these higher caps to work through the system. So we're going to hope to better. But at this time, it's going to -- we're going to look towards the higher end.

所以這些較高的上限需要一些時間才能在系統中發揮作用。所以我們希望做得更好。但此時，我們將會把目光投向更高的目標。

Our next question will come from Ronald Kamdem with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Ronald Kamdem。

Just a quick question on funding costs. I think you talked about sort of the different channels. Maybe for the rest of the year, how should we think about the equity versus debt mix? And what leverage levels you're comfortable letting the balance sheet run to before issuing -- having to issue more equity?

我只想問一個關於融資成本的問題。我認為您談論的是不同的管道。也許在今年剩餘的時間裡，我們該如何考慮股權與債務的組合？在發行更多股票之前，您願意讓資產負債表達到什麼樣的槓桿水平？

Ron, it's Sherry. Just -- we're going to stick to our time try ratios of 40% debt, 60% equity which results in about the 5.7x we say is net debt to EBITDA. And the range for that net debt to EBITDA is 5.5x to 6x. And so our current quarter came in at 5.7x.

羅恩，我是雪莉。只是 — — 我們將堅持 40% 債務、60% 股權的時間嘗試比率，這導致我們所說的淨債務與 EBITDA 比率約為 5.7 倍。淨債務與 EBITDA 比率範圍是 5.5 倍至 6 倍。因此我們本季的營收為 5.7 倍。

Got it. And then as you sort of think about sort of the other side of that coin, as you sort of think about the funding plan for the rest of the year, are you able to sort of get those done through debt issuance alone? Or do you need more equity? How do we think about that balance?

知道了。然後，當您思考問題的另一面，當您思考今年剩餘時間的融資計劃時，您是否能夠僅透過發行債務就能完成這些計劃？還是你需要更多股權？我們如何看待這種平衡？

So Ron, this is Mary. So as we think about -- as we move forward and think about the rest of the year, as Sherry mentioned, we're going to stay within the guidelines and principles that we have here.

羅恩，這是瑪麗。因此，當我們思考——當我們向前邁進並思考今年剩餘的時間時，正如雪莉所提到的，我們將遵循我們現在的指導方針和原則。

We did mention in the first quarter that we had 2/3 of our equity for the year at the midpoint raised and about 85% of our debt raised for the year. So we feel like we're in a good position.

我們在第一季確實提到過，以中點計算，我們今年的股權融資佔總股權融資的 2/3，而債務融資佔總債務的 85% 左右。因此我們覺得我們處於有利地位。

We had a really nice issuance of $600 million of term debt from all of our banks participating in that, showing great support for STORE, and that gave us a lot of nice dry powder to be a little more tactical as we look to optimize cost of capital in a big picture way.

我們從所有參與的銀行獲得了 6 億美元定期債務的良好發行，顯示出對 STORE 的大力支持，這為我們在尋求從宏觀上優化資本成本時提供了大量的乾粉，使我們在戰術上更具策略性。

So again, we're going to stick to the ratios that Sherry talked about, but we feel good about being able to fund the rest of the year in line.

因此，我們將再次堅持雪莉談到的比例，但我們對能夠按時為今年剩餘時間提供資金感到很高興。

Our next question will come from Todd Thomas with KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Todd Thomas。

First question, just wanted to follow up on the last line of questioning around cap rates, I guess. Just to be clear and in terms of the timing around cap rates, just so that were -- there maybe are no surprises.

第一個問題，我猜只是想跟進有關資本化率的最後一個問題。只是為了明確起見，就資本化率的時間安排而言，這樣可能不會有任何意外。

Are you expecting the acquisition cap rate to be higher in the third quarter? Or is the lag on when these deals with higher cap rates that you're talking about that are under LOI closed? Is that more likely to be sort of later in the year or even in 2023?

您是否預期第三季的收購資本化率會更高？或者，您所談論的這些資本化率較高的交易在 LOI 下結束時是否存在滯後？這是否更有可能在今年稍後或 2023 年實現？

So Todd, this is Mary. Nice to hear from you. We expect to see some of the higher cap rates in the second half of this year. So I would say, third, fourth quarter.

托德，這是瑪麗。很高興收到你的來信。我們預計今年下半年資本化率將上升。所以我想說，第三、第四季。

Okay. And then in terms of -- in dispositions moving forward, so the cap rates there in the quarter were lower at 6.4%. So a wider spread. Do you see that spread widening given the higher cap rates on acquisitions that you're anticipating? Or are you expecting the disposition cap rates also to rise? Just not sure in terms of mix of what you're buying and selling. So curious if you could talk about how that spread might look as the year progresses.

好的。然後就未來的處置而言，本季的資本化率較低，為 6.4%。因此傳播範圍更廣。鑑於您預期的收購資本化率會更高，您是否認為利差會擴大？還是您預期處置資本化率也會上升？只是不確定您購買和銷售的商品組合如何。我很好奇您是否可以談一談隨著時間的推移，這種傳播情況將會如何。

Yes, you've got dispositions that we're focused really on very strategic dispositions. And so we would expect -- we might see that 6.4% go up a little bit, but in that range. I mean, we dispose of properties here from a strategic perspective. We tend to have -- given the way we originate and the way we actually drive cap rates here, we tend to have embedded gains when we book our assets.

是的，我們已經了解了我們的傾向，我們真正關注的是策略性的傾向。因此我們預計——我們可能會看到 6.4% 略有上升，但在這個範圍內。我的意思是，我們從戰略角度處理這裡的財產。考慮到我們的起源方式和我們實際推動資本化率的方式，我們傾向於在入帳資產時獲得內含收益。

So we think we'll be -- continue to do that. And you might see a little movement in that, but probably not so much.

因此我們認為我們會繼續這樣做。您可能會看到其中有一點點動靜，但可能沒那麼大。

Our next question will come from John Massocca with Ladenburg Thalman.

我們的下一個問題來自拉登堡·塔爾曼 (Ladenburg Thalman) 的約翰·馬索卡 (John Massocca)。

So on the investment volume side of things, how should we think about cadence between 3Q and 4Q, understanding normally, there's some seasonality in 4Q, but could that be maybe more elevated this year versus in the year's past, given some of the buyer/seller disconnect that was kind of occurring earlier this year?

因此，從投資量來看，我們應該如何看待第三季和第四季之間的節奏？

So John, you're correct, usually the fourth quarter has a little bit of a push. We will see if it happens again this year, but it generally does. So we're going to -- as it relates to the pipeline, I can have Tyler add a little color in terms of what we're seeing in terms of deal flow, if that's helpful.

約翰，你是對的，通常第四節會有一點壓力。我們將看看今年是否還會再次發生這種情況，但通常情況下會發生這種情況。因此，我們將 - 就頻道而言，我可以讓泰勒就我們看到的交易流程添加一些細節，如果這有幫助的話。

Yes. So for what we're seeing on the front end on the pipeline continues to be dynamic. It continues to be strong and diverse. Usually, it is a reflection of the split within our portfolio, about 60% service and 20% each on the manufacturing and the service-oriented retail side. We're still seeing that.

是的。因此，我們在管道前端看到的是持續動態的。它繼續保持強勁和多樣化。通常，它反映了我們投資組合的分配，即服務業約佔 60%，製造業和服務型零售業各佔 20%。我們仍然看到這種情況。

So we're happy with what the deal flow that our front-end team has been able to find. And at the same time, continuing to push increased spreads via both cap rates and escalators.

因此，我們對前端團隊能夠找到的交易流程感到滿意。同時，繼續透過資本化利率和自動調整機制擴大利差。

Okay. And then on the capital market side of things, specifically debt. I mean how do the various kind of markets you have access to look today? I mean, it seems like at least earlier this year, term debt was favorable. But I mean, has that dynamic shifted at all? Are the other 2 kind of debt raising markets maybe more attractive than they were last year? Just any color on changes there would be helpful.

好的。然後是資本市場方面，特別是債務。我的意思是，您今天可以接觸到的各種市場是什麼樣的？我的意思是，至少在今年早些時候，定期債務似乎是有利的。但我的意思是，這種動態有任何變化嗎？其他兩種債務融資市場是否比去年更具吸引力？任何顏色的改變都會有幫助。

Okay. Well, relative to last year, the debt markets are also more expensive than they were last year. Relative to last quarter, I think things are similar, depending upon what point in time you chose. We have the curve shift up and then back down with the last Fed meeting. So the rates are shifting constantly.

好的。嗯，相對於去年，債務市場也比去年更昂貴。相對於上個季度，我認為情況類似，取決於您選擇的時間點。隨著上次聯準會會議的召開，曲線先是上行，然後又回落。因此利率不斷變動。

But I think the term loan deal that we did was well executed and well timed. I think that market is still open as our year's starting to see the IG market open up, but that would certainly be a product of current treasuries and spreads.

但我認為我們達成的定期貸款協議執行得很好，而且時機很好。我認為隨著今年 IG 市場開始開放，市場仍然開放，但這肯定是當前國債和利差的產物。

Our next question will come from John Kim with BMO.

我們的下一個問題來自 BMO 的 John Kim。

It's Eric on for John. Just a quick 1 on the guidance. So the new AFFO guide implies a $0.55 run rate. Can you just help us unpack the bridge to AFFO given the lift in cap rates and positive pace of acquisitions in the first half and a historically heavier 4Q in terms of acquisitions? It's just it seems to tag conservative.

埃里克代替約翰上場。只需快速獲得指導即可。因此，新的 AFFO 指南暗示運行率為 0.55 美元。鑑於上半年資本化率上升、收購步伐加快，以及第四季度收購量歷史上較大，您能否幫助我們解開 AFFO 的橋樑？只是它看起來有點保守。

John, I'm sorry. This is Mary. Let me start with a couple of things. The portfolio is performing extremely well. Our customers are in really good shape financially. Our business model, as you know, was designed to drive attractive spreads, and we're doing that. But there's a lot of uncertainty in the market and that we're in an environment that we haven't seen in 40 years as it relates to interest rates and inflation.

約翰，對不起。這是瑪麗。讓我先談幾件事。該投資組合的表現極為出色。我們的客戶的財務狀況非常好。如您所知，我們的商業模式旨在實現具有吸引力的利差，我們正在這樣做。但市場上存在著許多不確定性，我們正處於 40 年來未曾見過的與利率和通膨相關的環境。

So we're going to be prudent, and we're going to be conservative just as we always have been in guidance. And we're going to keep our heads down and just continue to execute on the business model and look to outperform.

因此，我們會保持謹慎，並採取保守態度，就像我們一直以來的指導一樣。我們會埋頭苦幹，繼續執行商業模式，努力取得優異成績。

All right. And then can you kind of help us triangulate the leverage on acquisitions made in the quarter, just between the split between debt equity and maybe cash from dispositions? What was kind of the breakout there?

好的。然後，您能否幫助我們對本季收購的槓桿率進行三角測量，即債務股權與處置現金之間的分配？那裡發生了怎樣的突破？

So let's talk high level. So for the quarter, we did the debt issuance, the $600 million we raised about $83 million in equity. But we tend to look at this as on a longer-term basis, and we look at as Sherry mentioned, the ratios that we're looking at. So 1 quarter just doesn't really make a trend.

那麼讓我們來談談高層次的問題。因此，本季我們進行了債務發行，透過發行 6 億美元債券籌集了約 8,300 萬美元的股本金。但我們傾向於從較長的角度來看待這個問題，而且正如雪莉所提到的那樣，我們會關注我們正在關注的比例。因此，1 個季度並不能真正形成趨勢。

What we did in the second quarter, we had that nice $600 million issuance. We were able to pay down the line. We paid down some outstanding debt on master funding. And so from a net perspective, we didn't really add much new debt, but we did have the dry powder there to fund the acquisitions.

我們在第二季發行了 6 億美元的債券。我們能夠分期付款。我們償還了主融資中部分未償還的債務。因此，從淨額來看，我們實際上並沒有增加太多新債務，但我們確實有足夠的資金來資助收購。

And then we always have really healthy free cash flow. We have a very low dividend payout ratio, as you know, which is at least $50 million a quarter. And also, we did a few dispositions. So it sort of shook out that way in the second quarter. But again, this is a long game. The debt comes on. The acquisitions come on and so on. So there's -- in any quarter, you'll have -- maybe have a tiny mismatch.

我們的自由現金流總是非常健康。如你所知，我們的股息支付率非常低，每季至少 5000 萬美元。此外，我們也做了一些處置。所以第二季的情況就出現了這樣的變化。但再次強調，這是一場持久戰。債務來了。收購不斷發生。因此，在任何方面，都可能存在微小的不匹配。

So -- but hopefully, that's helpful. This is -- again, I'm giving you a bigger picture of how things sort of smooth out between those capital sources that you suggested, and those are all correct.

所以——但希望這會有所幫助。這是—我再次向您提供一幅更大的圖景，說明您所建議的那些資金來源之間的情況是如何順利進行的，這些都是正確的。

Our next question will come from Connor Siversky with Berenberg.

我們的下一個問題來自貝倫貝格公司的康納·西弗斯基 (Connor Siversky)。

Looking forward into Q4 and perhaps early 2023 in consideration of where the forward rate curve is. Do you expect that the velocity of cap rate drift is such that you would be able to maintain that, call it, 350 basis point spread over your cost of debt as eventually will have to issue more?

展望第四季以及 2023 年初，考慮遠期利率曲線的走向。您是否預期資本化率漂移的速度能夠維持在這樣的水平，即，您能夠維持 350 個基點的利差，超過您的債務成本，因為最終您將不得不發行更多債券？

So great question, Connor. And so again, as I mentioned, as we look forward, as we look forward from our guidance, as we look forward into sort of this uncertainty in the marketplace and these sort of unprecedented times that we're in as it relates to interest rates and inflation and so on, we're going to continue to execute the business model.

康納，這個問題問得真好。所以，正如我所提到的那樣，當我們展望未來時，當我們展望我們的指導時，當我們展望市場中的這種不確定性以及與利率和通貨膨脹等相關的前所未有的時期時，我們將繼續執行該商業模式。

So what we do, as I mentioned, we're price setters we're calling directly on customers. We are driving the spread. We have access to deal flow, and we're going to drive that spread. And we've been able to do that now for 11 years. So we've been in business 44 quarters. And all of those quarters have been a 300 basis point spread or higher.

正如我所提到的那樣，我們的工作是定價，我們是直接與客戶溝通的價格製定者。我們正在推動其傳播。我們可以接觸交易流程，並且我們將推動這項傳播。 11 年來，我們一直堅持這樣做。所以我們已經營業44季了。所有這些季度的利差均為 300 個基點或更高。

So this is really our business, the model is designed perfectly for this environment or any environment because of the way we're controlling our destiny, and we're creating our contracts. So we have high confidence, again, and I will -- not to mention, I'd love to -- I want to add that the market is just huge.

所以這實際上是我們的業務，該模型是針對這種環境或任何環境完美設計的，因為我們控制著自己的命運，並且正在製定合約。因此，我們再次充滿信心，而且我會——更不用說，我很樂意——我想補充一點，這個市場非常巨大。

So we estimate 200,000 companies. We've been in business 11 years, we've got under 600 companies here. So there -- you can bet there are customers or companies out there that are going to grow, prosper through all -- through this cycle and many cycles and we're going to find them. And as we always do, and we're going to continue to execute. Our business model is absolutely designed to do that.

因此我們估計有20萬家公司。我們已經營業 11 年了，這裡有不到 600 家公司。所以，你可以肯定，在這個週期以及許多周期中，肯定有一些客戶或公司會成長、繁榮，我們會找到他們。正如我們一貫所做的那樣，我們將繼續執行。我們的商業模式絕對是為了實現這一點而設計的。

Our next question will come from Chris Lucas with Capital One.

我們的下一個問題來自 Capital One 的 Chris Lucas。

One quick question, and I apologize if you guys talked about this earlier on the call. But is the master funding market open at all? Is it competitive at all? And is there ways to manipulate say, over collateralization or whatever to sort of help you with the rate issue?

我有一個簡單的問題，如果你們之前在電話中討論過這個問題，我深感抱歉。但主融資市場真的開放嗎？它有競爭力嗎？是否有辦法透過操縱，例如過度抵押或其他方式來幫助您解決利率問題？

Chris, it's Mary. The market is -- we're hearing that the market is open. And as you know, we have paid awesome tranches. So our master funding is at a lower leverage today than it normally is.

克里斯，我是瑪麗。我們聽說市場是開放的。如您所知，我們已經支付了大量款項。因此，我們目前的主融資槓桿率比正常情況下低。

So we could optimize that a little bit by relevering and so on. But again, it is open today, and we'll look to optimize the total capital stack and the cost of capital with the many options that we have that we're really grateful for.

因此，我們可以透過重新排序等方式來稍微優化一下。但今天它再次開放，我們將利用我們擁有的眾多選擇來優化總資本堆疊和資本成本，我們對此非常感激。

So I guess maybe if you could just -- bank market seems -- you guys did a good execution on the term loans. That seems to be what all the peers are doing still. And I guess, so the bank market still is a favorite site.

所以我想也許如果你們可以——銀行市場似乎——你們在定期貸款方面做得很好。所有同行似乎仍在這麼做。我想，銀行市場仍然是一個受歡迎的市場。

You were the only ones that have a master funding mechanism to do debt issuance in that market and then you've got the unsecured market. Can you -- is there any way to quantify sort of where that cost would come out on the master funding versus the unsecured market? Or are they pretty much in tandem?

你們是唯一一家擁有主要融資機制來在該市場發行債務的公司，而你們還擁有無擔保市場。你能－有沒有什麼方法可以量化主融資和無擔保市場中成本的差異？或者說，它們是齊頭並進的？

It's been pretty much in tandem. What I'll say is STORE -- the Master Trust that STORE has has been inexistence all -- the entire time that we've been here since 2012. And we also had a trust in prior companies.

一切都幾乎同步進行。我要說的是，自 2012 年我們成立以來，STORE 的主信託一直存在。

So STORE is very much a gold-plated or, what do I say, issuer, and we're well known in the space. We have many investors that have been very good supporters of ours in the program. So I would say from STORE's perspective that we would have not only access to that market, but we have a very great reputation in that market.

因此，STORE 在很大程度上是一家鍍金的，或者怎麼說呢，發行商，我們在該領域非常有名。我們有許多投資者一直大力支持我們的計劃。因此我想說，從 STORE 的角度來看，我們不僅可以進入該市場，而且在該市場享有很高的聲譽。

So if you think about the tailoring the suit to STORE, I think you could tailor it to STORE really nicely. So I'll sort of leave it at that, but we are definitely a prime insurer in that and people really support us.

因此，如果您考慮根據商店定制西裝，我認為您可以根據商店很好地定制西裝。所以我就不多說了，但我們絕對是該領域的主要保險公司，人們也非常支持我們。

Our next question will come from Sheila McGrath with Evercore.

我們的下一個問題來自 Evercore 的 Sheila McGrath。

I just wanted to check in on tenant credit health, maybe you could -- I know inflation is a challenge for many. And I'm just wondering how your watch list is tracking at this point.

我只是想檢查租戶的信用健康狀況，也許你可以——我知道通貨膨脹對許多人來說都是一個挑戰。我只是想知道你的監視清單現在進展如何。

Sheila, this is Craig. Yes, we're really confident in our customers' ability to manage through any potential recessionary environment. As I -- as I mentioned in my prepared remarks, STORE has built an extremely diverse portfolio to limit volatility, and we underwrite our customers' ability to operate in various market cycles as these are long-term leases.

希拉，這是克雷格。是的，我們對客戶渡過任何潛在經濟衰退環境的能力非常有信心。正如我在準備好的演講中提到的那樣，STORE 已經建立了一個極其多樣化的投資組合來限制波動性，並且我們為客戶在各種市場週期中運營的能力提供承保，因為這些都是長期租賃。

As I also mentioned, our tenants are actually in better financial position today. They have stronger balance sheets. Their unit coverages are higher and really with -- this provides a lot of margins of safety really to weather any slowdown and still pay our rent.

正如我剛才提到的，我們的租戶今天的財務狀況實際上更好了。他們擁有更強勁的資產負債表。他們的單位覆蓋率更高，這確實提供了很大的安全邊際，可以抵禦任何經濟放緩，並且仍然支付我們的租金。

We gain confidence through the fact that we open profit center real estate where our customers derive their profits with high coverages. So essentially, we're senior in a company's cap stack, and we talk to our customers on a regular basis and have insight into their financial performance and our unit' profitability.

我們透過開設利潤中心房地產來獲得信心，我們的客戶可以從中以高覆蓋率獲得利潤。因此，從本質上講，我們在公司的資本結構中處於高級地位，我們定期與客戶交談，了解他們的財務表現和我們部門的獲利能力。

We are very mindful and thoughtful of the current environment in looking at industries that have discretionary versus nondiscretionary spending. And we're underwriting new transactions where we're stress testing those individual tenants. We're stress testing our existing portfolio. And what we're finding is that there's a lot of capacity to -- even if there is sales decline, some margin compression, the high coverages provides a lot of capacity for these customers to still pay us rent.

在考察可自由支配支出和非可自由支配支出的行業時，我們非常留意並深思熟慮當前的環境。我們正在承保新的交易，並對那些個別租戶進行壓力測試。我們正在對現有投資組合進行壓力測試。我們發現，即使銷售額下降，利潤率受到一定程度的壓縮，高覆蓋率也能為這些客戶提供很大的能力，使他們仍能向我們支付租金。

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

我們的問答環節到此結束。我想將會議交還給 Mary Fedewa 做最後發言。

Thank you, and thank you all for participating in our call today and for your continued support and interest in STORE. We look forward to seeing some of you at upcoming investor conferences over the next few months.

謝謝大家，感謝大家今天參加我們的電話會議，並感謝你們對 STORE 的持續支持和關注。我們期待在未來幾個月即將召開的投資者會議上見到你們。

And I'd also like to thank our dedicated team for their hard work and their contributions to STORE. You simply are the best. Please feel free to reach out to any of us if you have any questions and make it a great day.

我還要感謝我們敬業的團隊的辛勤工作以及對 STORE 的貢獻。你就是最佳。如果您有任何疑問，請隨時與我們聯繫，並祝您有個愉快的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。