W. P. Carey (WPC) 31 Jul 242024 Q2 Earnings call transcript

Hello, and welcome to W. P. Carey's Second Quarter 2024 Earnings Conference Call. My name is Diego, and I will be your operator today. [Operator Instructions] Please note that today's event is being recorded. Instructions] [Operator

turn Mr. to Sands, now of Sands, program Relations. Investor please today's will Peter over Head I go ahead.

and XXXX call. everyone, morning morning, thank joining for Good us for our Xnd earnings quarter you this

provided some Carey's Investor Before call we like Executive where may section with our that, not of will and Officer, be statements to for would where made Chief available in the cause begin, be be are materially copies pass expectations will I'll also deemed on call W. facts Factors our differ of that in approximately wpcarey.com, presentations over actual An the of everyone this at can related year, could filings. to to made historic online the investor our and conference Relations remind this I Jason are that you P. other and forward-looking website from SEC materials. And statements. archived call results X of Fox. it find replay our

relative call joined good Peter, investment our Sanzone, recent some our provide Gordon, I'll our brief a focus you, This take Head and second we questions. morning, quarter of balance guidance. I'm the morning, on Management, Thank but where by stand results, and to remarks Toni who Brooks details Asset revised CFO, also on guidance President; our update sheet. will cover will of activity this my our the on morning and our John are events, everyone. to and Park,

$X.XX who leaving today. Yesterday, John of shaping P. of is the his member XX management after lease friend, integral quarter second this reported in into of deploy played the our the W. have and to increased insights AFFO a is the an scheduled opportunity Currently, which as first over REIT share we Carey the and P. have to it sold, the into which of W. binding of cash pivotal per we sale to we office net half over year has expected acknowledge role is increase contract under and leading for and the asset, creativity except team been properties our is quarter, wanted new second Carey Park, further investments. close been colleague President, a into take jump Before one John our for the departure in call, December. final and I all years. now to within program to continue

pricing average conclusion we are program, which the set office total with achieved cap With the with million, $XXX to high when the strategy. expectations our digits line single in we this just rate blended of in exit gross of say consistent the announced both generated I'm pleased under we proceeds that and

been our $X both both over the Europe we years. seeing bond spreads quarter, bond and second maturities, yields also attractive of benchmark for bond investment we've the unsecured to deals debt where rates relative through raising relative billion of was pricing on Pricing over to and been their addressed U.S. tight over the the few last both During new bond XXXX yields issuances has in achieving new opportunities. attractive

substantial generated of relatively the our U-Haul have came Lineage almost equity about stake at next that up top sales although cleaner which of new started. At is reset and capital at IPO $X recent into following through with Deploying sales, capital, high was of we the source of expect several continue many did leasebacks NLOP its we that to A refinancings. current will investments, flow is the earn an our our expense revolver, investors. meantime. Starting and in quarter, position and as AFFO. AFFO return a million, highlights Lineage, will office you all-time without built its impact office we currently high very $XXX will our third pre-IPO from redeploying accretive source equity the subject of regular will through to sheet Lineage's for know, having successful on more pricing entirely paying which the it the larger redeploy of cash in accretive price, settling investors, plus decision recently to start new Lineage our when In we which, asset dividends, of sale The with we remains longer-term one in cash meantime, investments impacts our under on-balance we IPO. their undrawn on much an to few billion stake that bond our liquidity into on unique just cash promote. spin-off, cash be priced disposition. We're Our that getting expect the priority, the liquidity is just interest would highly stock years, valued its a net timing over the of the to

Moving to activity. investment

or first rates opportunities increasingly year, While potential rate the new to on bring some with a during the anticipation focus sale presented environment alternatives transaction markets half somewhat activity in catalyst will sellers the down. deal to muted, that has of financing leasebacks in to the looking compelling recently come cuts felt market, as

don't to capital the sellers The an moved to have sidelines for electing at often Some that current need pricing. immediate wait. have the deals

focusing transactions in opportunities see of cap on a continue into Xs We rates cap the cash the and investment new in some cases, going range across in with Xs. to rates,

we translates IRRs at long raise into don't any sufficiently an above unlevered which Xs, capital cash completed cap yield X%. is initial this average of over lease of deals need weighted to fund X.X% investments to to or an in debt rate new though million, the able well we've equity totaling of our $XXX attractive spot just year. Year-to-date, cost to average transact to even the With we're terms, that for bumps yields average achieve and

during entirely similar warehouse weighted at both quarter the deals rates volume average investment half during and between quarter first second over the located North America over were million a half almost resulting in the closed even industrial the cap year. America, of closed majority North vast deals Investments first yields. properties. Our and The included for and of second split $XXX average periods Europe of relatively closed investments were in

which tied over majority achieve our About X.X%. XX% We majority filing CPI of CPI closed XX% rent About continue we to first inflation. vast favorable Angelo months closed we to during had average deal first X% acquisitions escalations. rent of with The rent to portion majority at half half the escalations volume of investment X cap around investment the of the the of comprise the set the cap volume the bumps had sale-leasebacks first of fixed by existing approximately Typically, slight comprise of portfolio driven rent bumps, deals. Gordon. with vast closed averaging our of deal the annually. The comprised leases

However, we example align acquire do is will that looking a when This source of their and more terms we're existing was volume leases portfolios a investment structures of good and standards. of with portfolio our of. to

and acquisition XX within expect totaling $XXX totals timing. the of portion is pursuing given this transactions we're close including recently by Our which were $XXX of year near-term pipeline. we to over pipeline the out especially of the investments, XX remaining fell of I to days, portfolio next million, disappointed our of million the Two the half over unusual, we mentioned. it, larger just This currently

critical we uncovered be couldn't during However, issues that resolved. diligence

slower is added, new late typically While it in summer be drag to which the deals we enter investment period, a activity. our for continue creates pace as transaction

value, cuts As moving what a typically earlier, them it And adding there there indicator are deals leasebacks. leading before margin, rate which brokers looking to If forward or sellers a evidence on some the with broker sale I the to is lowers BOVs, noted during Fed third recent greater fourth quarter, to opinions strong increase on visibility quarter. we rates traditionally is find likely spur market. act, some for also will conducting is a for been coming in has that of

the cautiously affects hard year. expectations investment So our optimistic year therefore, in will completed through guidance, as specific discuss while the detail. will deal it's very Toni over that volume, of of clearly lowering flows which to our volume more up, timing, be remainder for full pick the we're will the which deals to activity predict We're, that

And with that, over to I'll pass Toni. the call

first partly totaled then close Prima one sale July by vacant billion, the the earmarked of sale contract and portfolio, offset over just which included sale the which million Wawona sold be our top tenant. Dispositions abatement additional final AFFO of with quarter, the of XX the lease-related our morning, Thank completed $X We've half of representing have last the ABR half for also for the will sale. income, including of $XXX higher basis expense, during July. assets quarter the Xnd of completion totaled just completed quarter, per hotels everyone. which $X.XX sales the December, the binding of in and first share, reflecting primarily with for one rent points operating closed program. under first good Jason, Hellweg, and XXXX We to asset a second asset office by under two activity, G&A of four scheduled three disposition Marriott in the you, quarter assets, first former office increase other over U-Haul year the over lower the the our

just same-store with growth. Contractual in quarter rent with same-store escalations including CPI-linked was tracking range and starting still Turning to for rent those escalations rent second rent year-over-year, our the mid-X% with leases portfolio, growth X.X% fixed X%. above the

comprehensive average the same-store of we reflecting half rejection, the was resulting quarter earnings rent specifically For rent current commencement which rent a the call, growth to basis contractual year. restructured second lease the Prima be of Samsung in these continue same-store growth lease primarily and the contractual of of year, same-store will started negative run Wawona year, XX the around the the to period quarter. The expect same-store ahead for our with our year-over-year in to points in the the although to the full assets build-out in flat lesser full impact the Hellweg, back discussed X.X%. expectation will we impact through Comprehensive last variance our degree growth growth, from that

added totaled remains or is second first tenants the cash earnings Our in bad guidance the continues same material and both no uncollected year it quarter with ABR the of our significant with around XX% AFFO X% Rent the was within assumption our our And and on just debt taken watch tenants. last rents. half collections as of cover changes over off. no the call largely basis for list to

AFFO of prior number expected current recoveries on the guidance We half Based of a year. approximately pursue. to $X.XX continue to rent tenants small $X.XX assumes progress we current and our which in with have and outstanding, timing, back the of totaling

in the the across other driven points in added Second positive overall XXX% term occupancy and weighted rent re-leasing which lease-related of remains of quarter lease average activity portfolio XX.X%. of quarter overall net incremental years, XX quarter, industrial was at by high resulted comprising lease re-leasing term highest spreads for ABR, lease and among at recapture second Other weighted and sector basis X.X retail average ended and the income the maintenance $X.X assets. The of on settlement the payments. XX remained primarily million deferred our years

million on includes this million. million million, $X.X line second nonoperating item over to bringing currency gains of for continues income on low year total the hedges, Nonoperating which $XX.X cash the realized falls to first half the guidance income current the $X.X the interest $X.X of during income mid-$XX million to was assume and in quarter Our of range.

U.S. rate that offsetting hand generally X.X%, into deployed on is of incurred our cash in expense issued approximately Our on the new currently average bonds until earns newly investments. at an the U.S. interest cash interest

basis, full million by and has declined total totaled property the property X our total first million timing expectations half that X% On currently $XX second which would decline operating million million to our to for self-storage down completed the is same-store NOI the X.X% on a quarter, the of operating NOI on be months million between Marriott expected from now I totaled relatively the from year earlier, up of an million full first $XX.X for income from through all we in guidance to based expect factoring on to flat and $XX is assumption a basis million basis. After to For $XX NOI first for properties cash deployment. Operating operating $XX.X year, NOI for $XX and XXXX. the initial quarter X%, nonoperating between mentioned AFFO bringing $X.X property the year-over-year. year-over-year is assumed sale the

expense quarter, first full million G&A we've year second the $X.X expectations expenses. totaled due prior bringing $XX.X G&A between $XX lowered and to currently costs $XX.X it from to will $XXX million for quarter half included total the that million. million year properties second the carrying to Moving property expense first our its on million sale vacant expenses prior timing, million. asset anticipate to Non-reimbursed to of the total commencement. the the Samsung primarily quarter the and for down lease $XX totaled for and for which

For nonreimbursed the million. Tax certain basis full expense the with property AFFO year, an onetime tax-related totaled million benefits total $XX million, associated matters. $X.X between we which settlement expect to expenses on and $XX included of

and tax $XX on year, we basis expect $XX full expense total an AFFO For million. million to the between

to now Turning guidance.

between year NOI and also investment billion and anticipating operating self-storage now our fall from we're discussed, to full volume lowering $X.XX and Jason for billion, expected lower portfolio. our $X.XX expectations As we're

As range some potential to our a between that offset Lineage have half are any of and currently seeing all per to AFFO $X.XX dividends the at guidance. or the midpoint we're second our by lowering we of XXXX, result, share. reduction the declares would guidance that to $X.XX AFFO in $X.XX the If

now, dividends For we guidance. AFFO from considering in Lineage XXXX aren't any additional our

going will updates look to provide color dividend expectations more any their our forward on We policy for AFFO accordingly. and

benchmark bonds May, million $X our of billion $XXX markets lower a unsecured we issued a X.XX%, and issuances, We're bond XXX bond of sheet bond June, which execution the XXX we had of rate and USD approximately active bonds capital We In million U.S. first $XXX taking issuance at to priced quarter, billion second respectively, positioning. now X.XXX% in completed the issuing points, a activity a applicable of XXX million Europe. of a and repaid the Moving end pleased million basis markets in on over at rate maturing coupon. balance environment the repaid repaid notes. in $X.X of with Eurobond rates. Since quarter spreads these April with capital July. of advantage XXX front, the coupon in their we've an And in EUR interest comprising

the debt issuances of repayments further in only by year. year We debt year have due The the maturities. average million coming our $XX well-laddered have of so this and we second completed of series no and nearly maturity bond maturing mortgage XXXX continue a the bond half a in and far weighted extended ensure to have of

increased including further of the revolver with Our billion $X position liquidity $X and at billion, billion second cash. the quarter, over $X.X period undrawn availability in virtually ending during a

used earlier, repay Although in liquidity to the we as mentioned subsequently I that July. of some matured bond that

expected the in low second year, in the new down the our to expect that, year we of second to rate for questions. back interest the into we back is as will remained low high end end range quarter ended below offset is X.Xx, I'll mid-XXs. target mid-X% quarter Our range assets the into of well the higher Xx, for weighted as to within range mid- of investments. Leverage and expense at bonds the continue investments. And refinancing by over which the to at the was average the with hand of expected it average relatively which to which over X.X% our second debt-to-EBITDA of be range call The interest matured remainder low the increase was levels the year. operator deploy Debt-to-gross into we the those similar worked new further partially first capital back interest to income, of Net deploy to to at of XX.X%, the half low capital that remained remained trend target the to quarter. although the of half

[Operator from with Instructions] Goldsmith comes first Michael Our question UBS.

bit talk Just kind factors And about is Can in the question -- what better it factors that ability may a My the or the interested you them? of get of the were that to out transaction the some two critical little risks you of dynamics you then pipeline. kind of the of that deals falling on understand the had other what are pipeline? out to issues and environment the deals done. the trying fall made around influence

clearly, And change on the we Yes. we pipeline from the biggest our and sure. that's in where Yes, when guidance June, talked and about range. impact modifying were last biggest

over were originally So those combined. deals two million $XXX

deals, of two of owner uncovered couldn't resolved. was for timely it and the larger a stages unaware issue what late I I think The be the critical of would in diligence. the we it, call

call So to most of would our something happen I unusual they're it, for I control. like out would it's this have are we far when this deals say along. rare and happens, that it

they disappointed These we're pipeline certainly, line read the I transaction with as, stage get wrong for and of that into be think we're with viewed process finish now So over anything a the of and didn't I the our don't the kind structurally unusual had again, in call markets. of isolated. through it's transaction them new to opportunities. But this replenishing

and over you Got sense can taken like on quarters? a now of a coming being to narrative we strategy what that the does shift in as kind aggressive the as shift it's volume expect a putting capital today, try follow-up, of offense now categories office sit to finding deals today down. the as and get the strategy with the right, and -- that like a work? I have we and you've of just some terms you other deals, just of sit of the should shift to But or the made dispositions, guidance this And the it. progress lot is like has whether been kind here acquisition then of

absolutely. Yes,

U-Haul also repaid and that's And We've would off is heavy drag the sale is a transaction with now sell bond of it's it was on large. And spin program this front done we've how year. portfolio also our big expense. the is That the -- a obviously, the our lifting capital -- I point. a characterize we to the done office think reset office interest strategic this maturities year but it. some last source, that at two

very in a strong the opportunities. us in -- which So offense looking certainly position into on position in yes, now. lean we're new We're liquidity of deals. terms for will that a help good We're

the activity right up. of we pick And kind where need especially so see this Europe. to summer, transaction we law. the in And late It's now pronounced are now summer is

So we and that year markets of transaction September at and the know the much what of end into don't certainly have right we'll of the like. looks dynamics of kind as now, summer but October, visibility the in the more end

Our question Green Spenser Street comes next from Allaway Advisors. with

are You second rate of fewer you kind for has sellers been noted cuts. competition have and U.S. in on just for that there to you of both And expect But more folks just year? Europe? provide half where some deals in waiting the as can see willing color competition do interest trended how the

Yes.

been So yes, markets have think recently. I bit muted transaction a

although will little costs as I maybe some think And I maybe and maybe around especially that's up again, in more than I that incrementally given think in cap expect pick rate expectations the gone. Europe Europe, We've Europe, little U.S., on seen little a bit competition, of the that's well, to bit Fed in borrowing a of in rates. have so happened attribute putting the probably U.S. more would both I can in the bit pressure a cuts. we pausing say, some U.S. that downward

to X% in right cash. work, mentioned lean that more relative think down. little capital generate accretion relative does put a cash, where sitting to certainly kind can rates can to now. a pricing on motivated bit. can earn We're that lot and we're of while push I cap We to some that but competition we yes, issue that liquidity, into we of also So will We

capital ends always it there, once up. bit it has and resets is up little been competition cost pick with expect of where kind Fed a of the will I So

investment rate the I investment. Okay. know has how about got just broader the underwriting on some given in the just And rental industry provide with made color to for the a some on thoughts maybe the storage in on base facing challenges you you then just front? small really thinking can expansion, comfortable been general? industry how it's regards the storage And But you the you're

Yes.

that think need go what the of that I deal. the I'm was expansion small. deals net an same to spreads -- the we to tuck-in asset But our existing through process of about it kind was I storage underwriting capital. trying right importantly, an of They think generate think a of or do for lease. to cost

probably what for us. I would but exact in. that's return or the kind need an it we have for of think they expansion think already we're underlying, don't of asset that kind in specifics to but net an remember expect in we see either than existing I can I a lease, of work that long-term was fundamentals still market a growth properties on that deal, higher tuck-in

with comes next Our from Anthony JPMorgan. question Paolone

down, So being comments rates of and even Jason, come the bit. I for to just about a you understand I to guess, sounds sellers some make price lean maybe into like able some mentioned of it want waiting are -- the sure I to

mid-Xs, maybe order talked we think those about up even about to that? cap rates, I lower, into or think to as mean guess, in get how the low range. going we X should Xs So forward Should like clear? things you I about being

equate typically Yes. good targeting our an now, mean it's which in Xs. certainly dynamic. yield cash and broadly -- we're would rates cap the cap in bump rates It's given to average the I structures, question, Xs, a right

of kind for pricing works us. that So

now, we I broad especially can as probably across of below range, as that while sitting we're on think right a are think and deal, cap the for rates. range transact tend I dip much we we liquidity to right

a or we're asset, cash reported But maybe that should growth in for rate bit higher I in there'll quarter ones year-to-date, some more So little I than that X.X think especially to leases this comfortable right cap the higher aggressive the range as get say. average embedded be have the well. that

Okay. top just that call us of XX that The of watch of follow-up. And tenants Is X% out? from any any you the help ABR list. then a on the could

do to take you that? Yes, want Brooks,

Yes. Sure.

those But As the Toni discussed the of X/X of consistent very is are the list, ABR. list the consistent we've of are about prior bulk watch That's Hearthside is remainder discussed those as watch mentioned, And quarter-over-quarter. in top XX prior we and conversations. in again Hellweg that around and calls, tenants. the X% the been and only very X has list of which

-- Hearthside X%? are in again the The but how

And were well. prior as Correct. in they quarter

Brad from comes question RBC with next Capital Markets. Our Heffern

for as end second obviously guide quarter volumes, competition. to of the lull, the you're end more third of low Then you has deal roughly halfway the are the a said waiting. So of quarter. There's sellers

in guess I take guide gives given more? you this guess I not confidence what year-to-date? just why midpoint the wondering closed the So down what hitting range, you've I'm of

Yes, sure. Yes.

So quickly. maybe just I'll recap

factor to that various roughly million stages. then the capital $XXX call It's we're There say, probably we this so. you would have at, in $XXX after I'd remaining or pipeline So of a like are volume $XX deal that And projects million close year. are I million. over expected

at to probably and that, of majority the expect we close August September. half of in that, think least I

like that investments we'd now, lower of where pipeline. least where that's of think right certainly right it's be. know And than of I our two gives that I we we're at $X that say, mentioned us to to that's billion deals that those So because I mainly earlier out now. dropped visibility into, at would And close

half yes, the the So with of to some do work second there's year.

ton have can deals. of do to capital bias that We just work. sitting on a we We mentioned on pricing I right the put into a are liquidity. lean

picked pick there summer. market BOV has to that are that activity out signs will of up, and of think activity. up deal mentioned coming a a I that's typically the activity bit precursor I

as active, volume of well. And of occur in top on deal have annual quarter. I about fourth cuts keep Fed XX I years, does be on of our effect and some around back our fourth looking that, our think, think to may quarter rate most average, over tends mind, the in XX% largest that

don't in wide and think year-end range range. given It we and we the So and we'll But the on work. more uncertainty, think the relatively that I October. that's yet, it's come deals -- put September to but is we a appropriate will visibility think have capital finding to into it's range focus yes, keep right ways

Okay. to actually on from like able Is And on have then don't that? sounded might Got that interpretation? it. your when you visibility you be that. comments Lineage. visibility you correct really on And might It when have monetize the then

I the or period, regular so full have don't sponsor's opportunities There date visibility mostly that an Yes, we place. for periodic settlement think liquidity that's is outside lockups maybe that. discretion characterization. it's but at fair we in years, of a are of throughout the X but There kind do into expect there'll be

I visibility we in have overhang don't there. But any into they're think motivated all likelihood remove that. of that to lot a

fair. I think that's

comes Wells John Our next Kilichowski question with Fargo. from

the list, but watch talk X% are Like you on that's of rest the in weaker you seeing the about a the quarter-over-quarter performance lower-end consumer more You impact of mentioned of ABR could generally? portfolio? these the businesses

Brooks, anything you...

list. No. default, would where a list remind indicator I not our point challenges think pay trends the on more attention. see close a indicator people other through we even I'll regions, we want it's watch some to Again, mean tenants watch of flowing expect good consumer risk. any what is that major identified base an Certainly than tenant in that where those but we the more to. that the I Not to various but tenants the I just we to seen we've haven't acute

second, Okay. maybe just back the self-storage to And portfolio. then jumping operating

we negative year-over-year X% been time last You took weakness the to spoke. self-storage versus guide in I And down feel like negative to X% the flat has understood.

So curious what what taken down quarter-over-quarter? kept for getting changed earlier, the guide

-- on Toni, that?. thoughts any any

we've tracked. year, performance kind looking say how terms the Yes. in has been first portfolio would -- the the of of I think the the of over And at I month-after-month half to of just it's now. softening. rate cuts. with market out show there been in We of generally come There's through signs seeing interest right that aren't as optimism the continued potential

So think at time. we're based our at guide this seeing in moment come point, I through this portfolio what on really is our

optimism there at self-storage, to generally where we the I marked we some still it the that year think in some But back of as think relative it. for the it what upside out hope we've to in year. I this us marked would half to be we've about relates there's feel point and good

Yes. are our that get well. And operators generally budgets those we of numbers part as from

certainly a how we're that's and look big input guidance. including modeling our in what at in So we

from Our Capital next John BMO Markets. question with comes Kim

I reprice? or on that you issues the clarify related? And deals just two wanted something that and quarter, the willing Were were these apart estate this issues transactions that or lease tenants those found? fell to to you'd be related real

to broader don't a Yes. to in their move was want their B, of order that And conjunction estate The plan that during hit to slated to by company go was was diligence, diligence refinancing tenant source had many real completed The sale was alternative we this in the and their of leaseback, forward it capital the an block issue. refinancing. road which uncovered I with be into with done get deadline. we two, a a larger too the details. when due

kind this kind deal but this proceeds up is And use of of close. to could the it possible with. Maybe of the of specific bigger in was would doesn't now. company is or that part have transaction scheduled accelerate a that, any chance mind resolution likely we right on that back, issues smaller, to driver biggest here, wasn't it there's that be the a So that was came come ensure

So and think relationship anytime restart have but of a that we in all. good there, if I not or including I'm we'll a that deal expecting stay at touch soon,

color. I also I follow wanted up appreciate on the Lineage. to

pretty capital. the source as could There of some the investment growth It that in is mentioned where You an gains investment. are dividend be attractive. a unrealized

higher a versus vehicle growth investment lower forward? yield that do that could with how So growth you potentially balance but going a aspect be it or higher reinvesting

Yes. XX don't first start, a very And time. now and business Look, the for I Lineage at sale helped, probably when made. did meaningful equity we unique we their some the investment that took see know, this ago a stake it, we years got leasebacks XX, was

So I investors it's say traded wouldn't and publicly that business our business, say own our assuming I'm it's would securities. to

So we that when business, course. The extremely of capital has reinvest offered our will options into performed which is well. lease, investment look core for liquidity net and they're

liquidity are there in income manage, outsized that over gains given in big. likely we're we'll comes but have multiyear pretty lockup yes, the So The potentially a taxable meaningful structure. period to

that comfortable to distributions. pretty going [indiscernible] cores those tax we're to feel we normal kind of So and be able with our manage gains

words. a in that's think other factor don't I So

we I highly, do going of prospects of it's regardless net have magnitude good think we're year. the net that think that growth in the like into I accretive. think be to it that. on in what looking will want that highly the get forward of second they to reinvested lease, be paying to timing accretive. the dividend lease, of said, reinvesting or are, don't will start highly I dividend capital half that a We I likely But

comes with question next Germain JMP. Citizens from Our Mitch

a maybe it's you've to Is way Jason, say in been modify had maybe, in where guide, any you with of guide the maybe decision any kind your adopt? of times that's come XXXX? that couple things up change there to you philosophy I to way switch is deployment up. that potential might think

the I about. think forces, things a to hard market maybe like capital us there. anything competition macro, It's more play dependent for on volume, role very and like environment, of something predict. rate interest is else than things obviously, it's cost deal so to Yes, mean,

the not easiest it's predict. to So

that within the it's think we're have more we include those best it, think don't that -- way. we provide corporate of common will about but flow how certainly I to a think guidance and range beginning at provide along I those what's and our to we point does updating going think year is recognize that [indiscernible] But to that around everyone guidance, assumptions the volume deal we taken, to your and the way provide it's through well the at look model but continue I

I I had about the think, so. broadly maybe then way portfolio, And Got you're that else mentioned, somebody don't think your ago I speaking, looking or maybe year storage at know, you. a

you've if valuation $X.X strategic but is in your number, a So, how portfolio about at out liquidity a thrown I mean, today mind obviously, potential think billion. not fresh another of I that you're looking source?

the Yes, to -- maybe million $XX $XX associated portfolio. million $XX million sure. It's a of under little with maybe NOI

value. an don't as but we've number, a probably $X somewhere we think good it's probably That's above it in valuation. over exact characterized and that, billion I have So

that long the talked like continue challenging We has to been about various lot options a despite fact year. that we have We've term portfolio. for the a the industry XXXX

did lease well on that's conversion things But capital. to we like portion fund sell be couple portion if potentially storage that some and accretive exploring we purchases. We of of the the are prior years spreads, the I'd lease we properties internal make replicate we we But would liquidity of that back. of was spending for view a a little think way One have now, think we of net could out would ability we're lease. right net else, more pretty say into another trading to some as that best time sizable And we new sitting right portfolio. of a of can certainly, a source net ton now. anything the it the

evaluate high create to lot broad the look we maybe it's priority we is options. different in flexibility of have selling at not but think on option. and the we continue a by say And to it's way the would I the is that the certainly I that all more portfolio, So capital point storage, main list message or

with from comes of Joshua America. question next Our Dennerlein Bank

to Granath to some out of color are This expecting wondering currently circle recoveries majority the tenants in you you're I little list year. I the wanted walk the is behalf bit $X.XX Josh. watch laid more tenants Farrell from elements a of or give of if you are just through those of was at from could on back if half on that the of one? back comments that it's who $X.XX or that the your some had on if

Toni, that? into do you to want dig

give happy color of bit little there. a I'm just to Yes. Sure.

of think I have we a tenants. handful small

all it's are on the about our watch sporadic And I roughly think of been tenants, in list, top none rent somewhat them X they've XX. size, smaller payers.

So I there think we've cash consistently to And AFFO cash in. tend had recognize when a them the we basis. only comes the on

$X.XX factored collecting past rent just and current due and of from some that some been So to $X.XX provided but just into half it I we have guidance and clear been, first we has of of line that's are sight the rent years, rent on of where of and the will to kind the to of gap we context we bridge that to do second help negotiations think to half kind in year. That's sight, have based worth -- line the of it do get all the that about prior of year. and from

a a you -- had know had or also, give curious And settlements know laid revenue. and color I get was I other more little little little on quarter-over-quarter, said. was if it I if out Great. first could $X.X higher. between you Okay. you the more bit revenue that mix color a But a I just that because additional the missed word million I

that It's I to Sure. what typically Yes, will line referenced were fluctuate. payments. tend deferred maintenance

maintenance some kind a end rejection. we'll facility the in another at was was little sell there any of to be obligations lease. It sort end related of other bit I or Prima and recoveries schedule, lease higher lease of repairs quarter, there the the this at any to or think a that recoup settlement need of the we'll done So at any around

some on recovery get did we So that.

$X of And so quarter. that made this up the million bulk

next Rose Citi. Smedes question Our comes Instructions] from with [Operator

to about you quarter. you wanted the bit in just activity that a concluded acquisition I the little ask

You probably it mentioned North I changed of because of I And of a up curious in about more or wondering now it a there know there's was sounds in sort opportunities was it expect in through the of America. bulk low was month if was summer, something maybe sort And so you like as opportunities the there like if to sort kind optimism Europe. that right just I the seemed pick of or general. just year, given you specifically would but international of with balance just move ago,

sure. the U.S. in QX, been we say, most I end would the of of do, Yes, since the Yes, did have transactions

would is more the I QX, year-to-date, Europe. pipeline in have little say close think to a I we done post probably And bit in Europe. half

of cost entirely expect that points we activity up. It's we pick activity to I next the borrowing in hard it's mentioned you that the there's then out borrow would to is pick predict, once there. euros, the can we closing And earlier, there but activity law I expect, reason as XX XX days So to think get we And basis think also dollar. summer that over will will where up. about low have U.S. inside of of XXX in

have better been in spreads So Europe.

that's and that hopeful to extent to I to in, going up can more activity, we're pricing need help lean deal see but think see I the and the bit come a maybe pick think we we flow expecting little into to some bring September.

kind of that sort wanted it to just Okay. what across inflation rent the minimum If would -- down of ask down, to growth ranges too, expect you same-store or kind comes like if targeting a of some coming you, inflation I rent just in comes has that of kind bonds And your if Fed with portfolio? been -- the now? the of time for sort

Yes, sure.

insight that, maybe going deals, any So on have Toni, Brooks? what do you existing portfolio but do. into is to not new the

moderating now. you've the inflation, Yes, to I think continue it's as said, on we speak

sort I approaching terms of stabilized this of of how of year the back think half in through that we're level metric. it's kind at our flowing

increases, we've successful both and which leases as the increasing So bumps includes been as the in few at years last of inflation-based pretty well. that kind mid-X% rent as over we're looking fixed well fixed

kind of range So say contractual in mid-X% same-store. for I'd the

Scotiabank. question comes Greg from with next Our McGinniss

what's more operating your same-store self-storage NOI minus in portfolio? the seeing Are is for the particular The growth this any Or expected REIT headwinds? X% you geographies around driving underperformance year. facing

much smaller the typical publics, I obviously, diverse portfolio, than think relatively Yes. dynamics. it's big the but it's a I mean

I think new street move-in rates big there's obviously drag a on or rates.

some to helping I think are of ECRIs offset that.

lot our forecasting the percentage think ground by more as by of we're Toni what maybe what a maybe mentioned, the so. on lag. our on a and and we're think occupancy getting is Those slipped bit budgets that little operators. are a or slightly, reporting I has But influenced seeing on so I we're a point based from

of might the there be the starting the some extent more year. the into to to into end So market optimism flow

any for any maybe Toni As there's there's mentioned, a other I coming assumption. But our dynamics that's upside of here? now, think into play there. or think I little read-through bit don't But

you that substantial on package? the of it Okay. assets the recapture this lease? include some package fairly space maybe that the that required of be Whether the retail Could like then type I why spend needed positive TI and might to they on that a on level re-leasing going expected rent X-year tenant IRR taking And think support provide payback forward period. color with -- was a

do Brooks, of that you have detail? any

Yes, house relates to state-of-the-art sure. sport and Dick's to concept. Yes, converting Sporting of it we're their Goods, one that

we bit say in those a lot hesitate outlier. we create think an this to do a But that's of when they case, And won't I'd So value. of certainly we reasonably capital-intensive, do.

digits. expected single incremental a low But lease a be good of to This I think yield will be store. kind with top-tier excellent performing bumps, -- on credit. the capital is long-term it's is

agree for net through per wouldn't concept a particular capital-intensive creation but Sporting specific trend to very read conversion that I one, a very value That's I So strong, that that upfront of different a se. Goods. Dick's to again,

Fargo. comes question Wells with Feldman next from Jamie Our

wanted to here. I picture just bigger think

different You've candidates. two the election got pretty coming,

Are just types you look are more think your that. on there would might are great It investment think transaction environment certain markets asset market political year? Are starting interesting? less thoughts just interesting? are there next about what global as you all thoughts hear more like the think the your certain landscape be what interesting, interesting, Just to less you on

economy. activity. don't a It's for directly decisions if to going kind the are I know to have sure. think I the mean rate think on I of and transaction big the we Yes, going Fed impact of elections starters, more direction be

the Germany. the that a talked think to consumer in Europe is something going obviously, retail, about, when some specifically in to of and we've strength comes matter, I it maybe lot

opposed be to as it's kind or I elections, in perspective. going whether of or France, macro-driven U.S. it's U.K. more So that's our the to think

on catalyst I build-to-suit more with that's think in be there the estate. maybe this helping a side we're U.S. still seeing critical fall can on for election of and the onshoring that helping of is our the nature real

manufacturing in I we're as and underlying demand for rents in maybe think well. the seeing it

us So I that I see to a continue you'll think think over that's And capital. positive. that's allocate an area

you Okay. And lines, I I along big fresh think picture mean do to mean, the risks the capital what biggest here work? are putting you're as

finding make opportunities. we for think sure I want enough I starters, good are we that to think Well,

We think the little in of now. what I've right the happens typically muted seasonal to nature are timing the probably of a bit mostly As the just that's markets summer. mentioned, due

but for business maybe generally, also see make for deals. sure net with right finding we want want transaction and and we're So our the those we enough activity, structures to pricing lease to

continue competition, to think but about. set that we're the and deals some well growth the be a why I think to reasons But I about up from provide sheet we forward. into could we lot the optimistic a that's more into going listed really So liquidity some there and of of something And year. feel end coming balance standpoint lean

making very very and a operating regular Our our about we manage if acquiring to within feel think much using stable. weakness information and changes the focus real Brooks, some something our estate, estate when a We're at watch real is question the that Even we're good We it's critical about monitor portfolio. basis been there point, that itself credit? was portfolio. the on portfolio. portfolio in has on proactive list and about trends asked any to we I earlier

well given a critical company of of and length leases slowdown, we're there's our and into think that. of is our real protected that the factor pretty even nature if estate our So all we the size

Sands. call further any At the this I'll hand not to Mr. back questions. showing I'm time, now

If the Great. W. Thank to XXX-XXXX. joining your has questions, call. please for directly P. today's Investor (XXX) Thanks, and anyone Carey. free concludes everyone, feel for call That additional you. call in interest Relations on

now disconnect. you. parties Thank All may