VEREIT (VER) 20 May 202020 Q1 Earnings call transcript

Good afternoon. Welcome to the VEREIT First Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

I'd now like to turn the conference over to Bonni Rosen, Head of Investor Relations. ahead. go Please

joining Quarter for for VEREIT the Thank Call. us First Earnings XXXX you today

replay Joining Glenn Bartolotta, today Investment our our Officer me are Tom Officer. Chief Paul Executive and being Operating McDowell, the Today's Officer; vereit.com at of Relations Time call Officer; call code at webcast our Mike Roberts, beginning Investor Dial-in the p.m. today. will Eastern with our There website is Financial Rufrano, section. the is Chief for Chief our XXXXXXXX. of the approximately confirmation in replay be on X-XXX-XXX-XXXX X:XX Chief a

Before looking. including that Glenn, these certain to actual our materially differ VERIET's I facts, forward-looking which I everyone this in SEC in to filings, historical earnings results report call, today. and cause may quarterly remind call could turn these factors statements that the from differences are forward would statement detailed filed be over are the not like will

fully reports, In expect stated our to by expressly these forward-looking VERIET or intent law. addition, obligation required more disclaims as statement any update as in SEC

Let me format quickly today's review call. the of

operational Glenn our with with First, by brief an a summary, Mike by then remarks. begin closing Paul sheet. give will then providing followed presenting Glenn balance financial who up and business will will update wrap

by today's will joined Officer, where Chief our questions, be conclude call will Investment We Roberts. by opening for the we line Tom

you. Glenn, let me turn to over call the

quarter are $XXX Year-to-date joining quick us forefront not that $X.XX. AFFO the thanks a totaled The be for know will there normal acquisitions million. for diluted and share highlights. this Bonni. Thanks results we call, few of the per has quarter was And today. world changed first while at

$XXX the partnership acquired to including million partnership office million the contributed million. office company the of totaled Dispositions a which $XX.X $XX the contribution share company dispositions was addition, of $X.X cash of property In million.

of number the the current sheet nontraded growth balance XXXX. our to paused greatly outstanding been have end? business, portfolio. since it normalize reduced Cole to XXXX all we was environment. together last impact EBITDA in understand sell thinking believed We to in a obtain Net from March, as to that What was quarter acquisitions Covid-XX grade since begin and better prerequisite grew prudent rating Settle As a and REIT our tenant in X.Xx. we happy investment an the team unchanged transactions debt diversify generally certainly about of balance strategies the the litigation and at quarter executed are Capital, largest We the sheet. concentration

model business to include Our diversifies conflict. our assets capital institutional no pose sources picking partnerships, which

extent are the economy. and we resulting here work and safe so stabilizes. to we Recognize I date. bring the a overriding tools are Paul we sheets been who use provide goals. now grade to and of fashion. our for the interact in and be hard investment However, challenges And disrupted a collaborative productive. Keep a we employees especially environment four work Maintain have in of tenants portfolio you understand our in are Officer, you a Operating closely model balance the factors number built will our with McDowell, We AFFO business grow when market up the Paul? there interested working to let Chief and has progress

Glenn. Thanks

Covid-XX As portfolio pandemic. the point already performing is focal is mentioned, we how know call this for the the during

restaurants. XX,XXX feet feet of of activity However, which retail very Leasing important. square also early million management was were which our on feet quarter X.X XXX,XXX X for million of square very normal square feet is industrial, are asset of feet renewals. included of leased still square office; with a the over focused teams strong million very X.X XXX,XXX feet and Total square square

many And prior of leases, cash built basis. renewal extended have in recaptured rent leases approximately XX% newly For increases. we on of rents these initial additional an

with leases and Importantly, the the finalize able process we has quarter prior along disruption healthy pandemic were to Occupancy into XX.X%. to at some in dispositions a carried of ended further some had QX. we that activity

talk and where about performance we specifically our let's are Now portfolio more today.

receipt investment XX% to May public strong rent versus paid these driven geographic Our that by came pays type private and government industry in April in arrears. underpinnings a property The from relatively rent far diversity. which XX% our were results at ownership collection grade includes at tenancy; so tenant diversification, is breakdown, X% and of for be agency

exposures office, warehouse rental to allocation discount, has grocery such convenience necessity helped and Our and pharmacy, industrial in including industry clubs as top our our retail based collection.

Top collections are public Overall, in XX the far effectively almost rent XX% of full in Or are Top April tenancy rent. for total a XXX%. XX% our of XX% portfolio tenants positively. XX XX we at the over tenants and overall XX% paid the strong public a have of view In of tenants XX in over component so portfolio our and within XX% paid May. Over portfolio which April. rent our retail so And within approximately of retail May were well far investment-grade very

less Fortunately, geographic areas and many diversity states out in impact that from to reopen lot many spread with of started a of in properties business. of the have that have are the for country we our have had virus

open patchwork capacity, these in of the of or locations. open a X,XXX now or restrictions in have based we Although, country XX% on soon regions opening properties remain some they

opportunity doing this to been take teams largest collections acquisitions. served our are trying is augmented X.X% These circumstances of outstanding those the our states company and teams and New personnel real asset with experienced job departments, them. underwriting have reflective which and our from our with strong hard-hit in the in portfolio have the Only hardest-hit thank of of date our about very X.X% estate always respectively. management I us an and northeast management X.X% past Collectively, two New been been well. months they And to York in and in property have partially have Jersey and The efforts. will in

Our Covid-XX Rent teams on received of approximately with understand discussion tenants an dedicated on businesses. the income relief of have management been annualized impact asset property requests been from have their representing basis. XX% our type to in rental tenants

have each been locations and are they request the liquidity. rent tenant's unique each We case-by-case metrics based where geographic a basis corporate situation, financial health, as financial evaluating tenants' segments, on analyzing operating coverage and on such industry operating;

it of other or received help been capital been Of not over to denied four a little have no about relief, judge in in for we a about merit has those and think negotiations range payment and two do at have deferral XX-months are Our in short approved, requests pay a who interest from third goal opportunistic. The same the action. a need with time have we the as agreements deserve third taken the tenants rent being been have we while run, those tenants to forms date, to have access back a or to within we made month third have been and generally either pressing appropriate.

While per lease. long small created have we've think in think of relief be we we number any longer for term deferral rent term in value the a abatement, not in as here will have tenants created a cases where we rent and generally we structured

with from have such to the as in also impacted portfolio It resources these financial industries we that we however, some the necessary smaller so some will helpful have have funds. some and expect of storm. is the to Paycheck monitoring think and that to comes and again franchise government Program half this worth can the to various tenants be entertainment most large We our and public our which we've applied have companies programs, vast capital the weather private amount About the related noting access Protection majority tenants of do, to retail. access assistance ARI of restaurants and restaurant been

the monitoring Lending We Main our also as help larger which such the Program initiatives Street have of governmental new some may tenants. been

as collections the were of XX% in rent ahead is where X% period April. are Finally, for noted I May about so which we far time same during above

of into with we with gratified went for collection momentum so May. our have month With far As that many May full very the from felt. impact some in shutdown been mind, others the April be where levels the the quarter first out, pointed are with in tenants has

current collections expectation will lower be coming a in April April is where and continue far so for is total May to that bit Industrial Our one we can approximately to primarily paid April than in ended. pay. believe which tenant

we tenant. today. We portfolio for in think June in with of discussions and are be May. found point, presentation in Further will collections our the collections be details can Investor and segment this April At information range file currently that

to Mike. now will call I over Mike? turn the

all Thanks joining Paul thank you for today. us and

target. on quarter Our really were first numbers

sheet some is going balance that it's most liquidity. and what's recognize we However, different forward and for a time important environment our

as support access company XXxX high to mobilized we their me continuity able sure smoothest are Before our them to who a Employees materials continue set employees essentially and We're desk. training I level though home. help that maintain and get for are ensure a team quickly that of into to operating environment. and utilizing probable, employees IT and private networks prepared Anticipating virtual an quickly up our had XXX% the business awareness transition office have currently security all virtual get how prepared work to was shutdown we for they homes remotely. in our let to to a plans IT made effectively to from equipment discuss we

impressed addition, able to keeping period business entire been business all is been normal like I've to our for daily in thank everyone I'd management team with committee as their adapt possible. operating during in running the as sure participates efforts of efficiently. well this how In difficult make has the the and to meetings virtual

Turning strong The point at us unchanged focal as net key company maintaining sheet balance well liquid rating. normalize few very with and the to gain over positions back worked to investment now. has last been X.Xx. remains and years our our sheet from to a EBITDA debt we for grade hard a company A balance year-end

normal of million in initiated position. of to credit As unfold, enhance revolving $XXX pandemic continued operating to Covid-XX our our we excess line on additional requirements cash an draw of

cash XX, $XXX comprised of in cash availability our of corporate facility. of had billion liquidity VEREIT million As May equivalents approximately $XXX of and and $X.X credit under million

real gross investment net to increasing fixed to Our XX%. coverage healthy charge our was remained ratio estate and X.Xx debt ratio

of ratio of fixed, are asset to of our which line unencumbered higher duration and years Our the our utilization the quarter. reflects weighted X.X XX%; debt increased was this we credit XX% average

very a manageable coming in we Additionally, amount the due near term. debt of

other we $XXX end X%. this bond due convertible no XXXXj. And corporate in the we As see coming year million we $XX In what had million December. due at at million notes due of see a on throughout with mortgage in next weighted rate a average until quarter bonds but we mortgage end, I interest covenants. have now, no XXXX, payable payable of $XXX issues approximately due notes our had of year Based

outlook. on withdrew and work our representing on an we see debt levels to Directors decisions of our sheet second made we'll our and this Board reduction years. monitor time second guidance any quarter update is our today, the from $X.XXXX face; hard impact last and all with Moving XX%. in allows current continue the of and quarter its to tenants analysis. determined the five not estimate so this uncertain financial We extensive satisfy Based the Board reduction providing of are prudently issues policy April income dividend and we taxable market This dividend requirements. its has $X.XXX the REIT environment a reducing balance was no we at The beyond due the over business. Directors to the decrease stability our net us to after not of to manage to respect with and for

call Glenn. the that with turn will And I back to

Mike. Thanks

is commitment always of main to best corporate to serve our constituencies. the ability, defined Our three

Our stakeholders, tenants and employees.

assist our quickly the and focus way. combined monitoring March that new intelligence risks work our in come We and our all developed to middle were potential tenants Our home employees continue tracking can and processes efforts tools to a three. from environment on to business of virtual transitioned fully

real We team have our at the of experienced groups. only side, estate a within the on executive company deeply here management not but all

as asset acquisition of navigating As even challenges becomes the important will some to be personnel our during with others tenants and time, as we facing. transitioned more leasing management our assist have well this

sign-off of efforts. solutions. strive our paralegals Our we staff, through to said to daily calls and legal from goes up on Mike. a attorneys consisting are support a myself, working and committee I investment Every the and with with request our come Paul, process best where ends also tenant Tom

debt current teams note them. Mike X.Xx. collectively our we and and balance statistics. Our dedicated thank EBITDA have we maintain presented employee net great energy sheet exhibited Of resolve to

Our XX% our and cash the with this and But exception sufficient our liquid revolving unencumbered. liquidity converts are assets remains year. later highly of

until no generally based to is have of bonds reduce macro XXXX. on upon the are where wide. more in do for you is micro dividend extraordinarily corporate how the We duration can review difficulty to not of judge our what business, you The due when but economic decision glaring. predicting quarter and The this view disturbance importantly Board's a know Possibilities economy. are, uncertain to When you better do it. this a

of April duration tenant better of While we outcomes. have and a receipts are with getting a view May, variety can

the financial was this the possible any of such that is of outcomes debt. throughout balance which on strong increase amount analyses, base while year protecting with of against and range a sizing next. view dissecting We this build sheet Our stakeholder The upon based chose to series maintains a in uncertainties dividend dividend value.

is information the in more quarters, decision this As under available constant will review. each next be two of

As grade only not and credit, also as percentage property well geographic by our but as in companies. parentage, high investment is well Paul's industry limits, heard portfolio a you public serving of us diversification presentation, type,

course we year. as will reevaluate move this We portfolio throughout parameters of the

very the get are this. difficult environment, business model in provides thrive grow we once a and ability our While we past to

us last through company Although years strength will our provide transition get year, be over XXXX disappointed to that the in this. experience transforming will a the five

will XXXX. for Our future in our portfolio, is perform and the reignite liquid sheet, hopefully partnerships diversified experienced balance that all team and expectations

from very thank everyone made and Before profession pick it. ending, to the kind have They in my for this were I now questions. in difference I line much the those responders their during recovery appreciate open to the certainly a and would lives, like me I'll to great time applaud virus. also mine. notes such healthcare ups, who our take for all first want

Instructions] [Operator

Our first Go ahead. question is Mizuho. from from Haendel Juste

your that good Hey, hear to budget voice good afternoon. again. again. well and And Glenn, Glad back

So first of your industrial portfolio office the has life how and on be having high level been is exposures about your curious subcategory might think more and allocation in portfolio going on Covid Covid to aftermath beneficial. and the a impacting forward. question Clearly and more view bit

or here Covid? might how post portfolio curious Thank on yours, you. I'm the thinking So the board be evolving effect balance allocation

for Sure. kind your Thank And thanks note. Haendel.

to not As you we The -- us, followed sure we as of others been know, here, market the that around we future. of you make rating, put property tenant number We a Haendel, we try at portfolio others, and grade a geography type, we've credit, and and metrics what thinking elements so XXXX. were generally pretty in of diversification. percentages number to all provide understood disciplined time understood the since investment

that the understanding that due thought we to long future. And in always right do. have continue we to will portfolio thing is term So the

So that's before.

us be, our and be idea Now first certain we things real we'd January should and bridge a a where estates e-commerce let's it's like and portfolio just good is if good. to thought I because experiential entertainment about saying pretty against restaurants took

had also these be or pharmacies calls that's pharmacies. Well, a number of on today. in be around We conversations the turned best best portfolio, about would not

decisions performing for I the to make the well. types point of the may be types the thing we this or on how will for where now storm one to going upon some hard are over We're now wait reshape will us subside have say to We're upon middle be that office we will not today. of like turned of reshaping I We judge there what's perform storm. is time. will The before happened based periods To around is thinking shape we're your portfolio how portfolio. metrics all not property believe and we make in some decisions about in terms to now. pandemic for right this some what us but very property based the of today may going that

the is happened We're the diversification just to we may a the but not plus, years constant last only Our very future. diversified is take of always some will be our of the that thing denominator I do six -- Haendel. five only that can metrics what's change industrial over and out yet, good ready to performance is in that

if your the it. And process could perspective, perspective the on at dividend, but a the Got appreciate hoping you bit I comments XX%. cut thank us was appreciated. for bit second to the a on And more give quarter then you specifically earlier more

trying cut the I'm to and others a until perhaps Some we estimated curious to other flows, XX-ish recovery make credit reason it final to the quarter these Covid. read cash immediately, of or of into that are sectors have suggest have options this versus flow cash opted too to and year dividend suspend XX% why much on percent an the other think pre to second or end prior determination; your so of maybe suggests

So your reading we maybe what any should around context into be thinking Thank you. it. and here other

No, that good good, quarter. another question. difference a was this Certainly

what's a and we and it very have of company play thought to the economy. decision duration The will dividend, mentioned a and the decision I'd I happening was not -- say burn a duration first, the a the reduce will was It's happening really have on it's time it's when just based today, to your upon importantly not you a and in what's necessary to have -- turn their take would your it's will upon as or a all here an Make hard that we not. decision we can predict only uncertainty feet what outcomes based stomachs businesses. what difficult two. make review wasn't as next we but itself decided easy what more it's that year important various like how was The a over of and that role easy our decision. board make to it that But in look at run the happen very tenants macro

have a than knew not We better to I'm April sure going happen. we the in is basis sort was it that April. which helpful of and what May was

future, it maintain and I'd the fair June time we the say the have but a the saw April the we two balance comes of the the talk The and was that for The at pay sheet. two. denominator was thought of feel with question some the of cash uncertainties to better Paul about you've balance now flow flow to flow a we what cash the series couple shareholder. common cash heard really had, in of We that a substantial which question. that the outcomes by balance financial sizing starting was dissect and a if through we the May year this and a of dividend, we is same possible since And we analyses. to next. not But strong which wanted, we months at needed is over and last looked reviewing did really We did XXX% of

being quick would three recovery; U and a sustainable Powell recovery upon would I the dividend of terms U V; thought the W. U V a those it's on. come same side to the and of and middle equal Powell. protect And of relationships almost W. used slower our perhaps And which V, we towards. is dividend reading based U being represented views, our a of can at W try a beginning you, a in or is in we W light looked and than it's a I if would were and And time the it. those between on a end that increase the try the to say which article it's base to just a against and be any going a clearly guiding this but a on were them at was with a describe all the describe I the build Minuchin we was if of amount the discussion analyses, higher an work those two of debt. not up build U We seriously dividend to left-hand Minuchin duration was quarter $X.XXX really to where to say The of

to right provided real will third the build any just dividend. we sure it's clearly we're disturbance -- in day there's now we're not not approving but second very that by that the think not a to seeing we in environment any quarter what we're the base occur or on a basis. think that's Now appropriate and means solid quarter if We're And big dividend. economy, day fourth on relative which base a to we when build dividend

Sheila next Go is McGrath question from Our ahead. Evercore. from

us the the historically in Can the credit some Good just Yes. Glenn. you us you expect time? how in the credit maybe following that on perspective term? portfolio for do afternoon. cash back, portfolio Welcome And loss give you to loss over to your give leases accounting for view And near on be typically converting some term? near

Good.

I those ask Paul pass on pass going good Mike. two first credit I to I'm and Paul would then on to of the think Sheila accounting in one questions, are very that terms to you to and

take that So first you Paul, one.

Sure.

the we've the we've and years. that portfolio losses respect Sheila. Hi, pretty Of credit to losses over had fortunate course. been in past credit With few low very

the had credit way haven't of So we losses. much in

watch is long no a lot We been our We time amount that how ends to with regain also and suddenly of don't that we stress. all went know where stress the have in going-forward X% that does up from you under healthy runs are flows. credit significant through a and own we rents pandemic as And adjusted suddenly small but Glenn companies now generally time and relet few had here, credits the the that a this X% as able a to between key here and question this credit last. bankruptcies of lost very and are we've his of list we've know of in properties mentioned the From into duration. credit perspective that fault generally, remarks exactly cash portfolio have we their

and We're fortunate of made they've in that access capital. companies up got to most of public the portfolio is

sense we're they give expect you I that being about to and since to But were at to moment duration. too to early resume where here healthy accounting of tenants before. we losses we pretty the credit know be Mike So jump it's the little our will confident most able ditch companies a this a with give think come rest that And yet the the question. don't I'll

Hi, Sheila. It's Mike.

FASB I to have have that deferral year points. so next months and expediency handled real says has FASB what that three, decision you cash is and think months some or really have to come expediency we it is that is new would were have before or pandemic can the we but going going under a of question typically the the change or be says this of leases, dealing as the couple original just everyone flow, calling accounting say some be in over they're under if because any no and fact then an came collect where with but treated the deferrals the they expediency to to many let's down lease with understood to a what our out deferral expediency situations a you modification contracts XXX, people you that four had typically the have a we going new changes six the two, substantial if you rent, situation a rather the

the deferral revenue, you can it and would make normally your periods collectability included something it They would is variable I'm accounting and you the called set different some in use up reasonable is during a EBITDA that a those period. given during very those is cash to accounting. for going it that there amendment. why the there's collectability reflect doubt if about simply receivable treatment, do your about deferral that be revenue to cash you establish basis. record decision you to it all If amounts but collection think do the a receivable make normalized quite AFFO, as give to regular during periods the One than not NOI then were first which on account which and yes, you're of similar you as that answer a have is lease you a was revenue you as to sure and your option if one want other would would able you this if treat then

And you're then changing free and some terms extension of month or someone go the do and the on the the five normal lease to a back reason, is be is accounting. last for typically do the option for extended to extreme two if rent lease, year XXX could a getting actually of and blend that and say have you modification three lease

and how completed transaction which bucket in So it. for we it that decision through account and tree is something going belongs every deciding we'll be

from is Jeremy question Metz Go BMO. next Our from ahead.

hoping two was -- I Paul, parts. guys. could Hey, you

line retailers and balance relief you getting I then on keeping balance restaurants. and how you back others Art the granting boxes could tenants us giving there? because retail Just arguably deferrals latest rent those how do see many in with room to one on the someone could not Van so going just others between curious fine I'm the particularly and request, give guess your just mean and And pay you breathing I an update granting. place the healthy, deferral, happy so

You into to just straight Glenn? this, want go me

question should and answer it will. redirected for sure -- that Yes. better I don't Go. directed make it, Jeremy thought I than -- to thanks gets I Paul Paul, it yes, he Jeremy answer have he'll I Paul, it because

stores, pre Art had liquidate. we With to have eight remember you to subsequently Art But respect decided Sure. with have Covid Covid. to nothing declared bankruptcy do and Van, may as they their bankruptcy Van

LOI tenants, with from delicate because moment and have of calling on all do very XX% a we I script balance the a think of respect are With the lot the four for how of at four I it on in We accurate operator remaining and between to have market. a experienced play. the eight previous at an those and about touched rents got in market in delicate the stores place you're on the there's it we request balance deferral and the the manage things had

often are We one the liquidity have also likelihood so size size tenants' and think liquidity is renewals about up other. -- capital the on relationships of is coming other we what our and on have balance their often tenant, the sheet so do hand have of on forth. and interact the balance with sheet and we the from that sources tenant getting how What how and to of what and do when their we

All factors of play. come into those

So in we've some long. be across tenants we deferrals the to And about generally in the launched we can everyone and ability much and other to have And for tenants just had pay deferrals. if who And asking are not and really clearly make significant help We've then a to simply are because where how have for have been had we them. deferral a from judgment asking got deferral them how just we requests and to I or for say range. position else for deny we they're those whether clearly of distress. help that request have sort seems

judgments those make we so And day. every

We committee week. meets that have a a times several

make we asset once and committee and a these. our with judgement I each and up what to every And and every a a about day make then Glenn talk about one through meet we Mike, do. it judgement of I go goes process to managers virtually

based with a peers that color. sounds this your the go we appreciate the a net if like follow-up different It experienced very could operator. ask Art one on And I heard that Van four than couple comments on a is the going of operator and back I your the shuck is deal, are one just lease correct?

correct. That's

right. are just All I there wondering assets like Tom, front, And then, seems on still are the out it there. was deal that

on wanted the still into any seeing If pricing? under XX.XX ground? about happening resetting go there months you Are that's if so money that the happening. You deals just of we're on sloshing this much hearing saw contract and How about. is on this, sort at activity, read some what's two We're what's yields our around point? it color early I

got You it, Tom.

Sure.

market on we're I not activity our retail particularly think to now peers, pick lot pick on the market. early in impact a that's as mentioned just of too as well up Glenn an -- as sector. the most So of pause in right the so

you market the XX.XX is maybe same XX% in assets on in there's just moderated we to exchange that pause partnership But some some the buy Although those probably but single the industrial as type did partner. There is activities strongest type activity which tenant XX%, mention there Seller despite, is been be by the expectations our market would far buyers. selling our which impact what in we've active with product think we credits. but Korean seen to well. have for long-term Office grade pricing. slightly in we've be investment going market

is pretty that think probably range. held same well market the in I up price

the in million year. in X.X here second transaction And at announced the square about partnership feet we call. A half project industrial those we very million hope last transaction have end $XXX of will anticipate in large a that both We close do to front our that we mid-year. partnerships active be

We in would other contract close builder that fourth under with two that quarter. also that suits were or third have

we been the remain year. that the by Covid in partnerships of half second but we impacted be active. active both have certainly hope So They will

too I will or higher office early too small. tell, pricing, but So the generally have and generally on even and quality investment grade we, and I little side think very think soon retail in industrial impact the our very to space

price VEREIT ahead. Glenn. And no so --sorry, Go

make said I XX and wanted No. not decline. cap percent XX to in misunderstood. just mentioned you had I Jeremy, Tom sure, Tom rates think what I to

Yes. Very percent. small

I I misunderstood. just misunderstood, sorry

is, XX than seller the point at or has sell? that's which XX matter pretty less up is leases this well impact just the is But no point. think held this do generally to stable in has a How want I I deal very at place and product type product badly far type to of what think long-term X% basis on time. type the credit with pricing it does lot

Our question J.P. ahead. Anthony Morgan. Go next from is from Paolone

Okay. Thanks Paul. well, Question Glenn. for are and you glad

where terms as was April talk of May. inside the June you in You look your just and pretty detail a where might little could you be wondering to close worse mentioned for more a be I versus happening more like what's if areas at the if months the improving they level, few portfolio that things with of look it should look view portfolio and linger asset could things like this.

Sure. Yes.

coming most necessity tenants very our lucky office very, comfortable feel -- our so cash retail. our are point building industrial of is portfolio in about up that most we've We're about. steady based It's very out. of of we right. It's we're very been So and flows where view

where paid. for kind tenants matter negotiations no every which matter which here have continue We're tenants will we're request. looking with at single tenant haven't a really then We in much asked no pretty of the margin it's paid, who's deferral what

coming teams are to to them payment about asset see talking judgment months. talking make and to are So the in by management able a where streams them, we they the coming

under we've and predicted thought out. April where We those would. we predicted would where we So now. close out come they belts May to got They our come

them still XX% slowdown. while in were down the they of those market levels. significantly restaurant feel And see portfolio. very, are think improvement operationally, operate decent Initially restaurant now to areas by significant only many like QSR look very many the we into improve the of particularly we where would June, pandemic that most XX% at see to far. in we so sales hit insight the is our profitably we when respect very portfolio, With one And so is we I have to most tenants the June in which the that improvement pretty can

A lot large button casual when go and sort down their didn't sort in We've while in them place just the dining. also of we're now so in of sales range obviously really developing the in brands, are fast-forward and on of but are hit our their they it XX% the different hit. infrastructures tenants or to-go have have down the initially seen to improvement improving varies across those performance the They XX% range. pandemic

seeing we sectors. and the in QSR significant improvements so a in casual in cash the So dining flow are sector casual some dining

think back So open up. to that's start encouraging I as we

And that. expiration for you another question then as I your Thank schedule. look Okay. at

next year, that is for at to a couple got know challenge going any this is us? portion you You that's vacate notable of point this points there that about year X% could be or a

Yes. that coming work stuff at know in chipping year mean away as I that we you particular we do and next due at advance. hard have nothing X%

remarks some prepared early those XXXX and the further renewals we XXXXm expirations granular. renewals even had early noticed you my So In in are that and out in hits actually XXXX. pretty

leases to that We XX have in XX sort expire, total retail in and restaurants. will of each XXX

think we at number any we particularly this will stage, a say, see oh, renew. not don't those So where large holes large

doing the move renewal reasonably will the We the through pandemic and of even during renewals far. some process we've and even so been have portfolio routine restaurants been in

as we'll XXXX see out expirations think I the coming our pull to a this So remainder see that in year of how XXXX down us and plays beginning progresses. months you'll as

debt -XX% need think that quarter watch will do last collections from just you and now covenant with line of it's you the for, point for? anything where Thanks seems should question to we view up. about Okay. Is a or end Mike, XX% like

No.

about are the We we've are drawn and line from we're fine billion perspective. of two available I feel have $XXX million on in that that pieces. we we mix that liquidity remarks of now, And having my fine $XXX so $X.X those quite believe comfortable broken that mentioned the into of with down so right million cash covenants. where we and we that

any see So I on that. don't issues

at on $XXX debt coming convert. million about some year. Most this some-odd is that December right the million a have total We $XXX in due of end of

be refinance much in lot BBB or IG the we going ago bit not a markets They've month three a A little time decision a as lot to forward. pricey, between so. we'll looking the that then still have we'll and gotten at were of last make were obviously how that liquidity. plus of good but or weeks minus, BBB So better now

decision options our make that As so how we we tried, we'll as we've obligation. always refining that open keep right to the

One Securities. Chris from from Capital is question Go ahead. Lucas next Our

generally Thanks. It's good guys. Well. coming of you a couple your Hey, year. questions at how the hear voice and Glenn. quick for about about you're thinking I to due you the debt the mentioned end guess that's then Mike just

spread be sort it you to what treasuries do price over If your had you long-term of think today debt would at?

A a been a XX-year and somewhere around for mix spread and I million there's Treasuries. BBB I the of kind a over $XXX think right. we're between BBB that minus tremendous of BBB plus or of --the say then today somewhere spreads we're mean and

minus BBB rating. BBB two one have We and

that's So is lease group spread net pretty the wide. within

right would the I -- somewhere So a in say XXX XXX range between say now we're on XX-year

important we're we helps potentially that to in we And, of we'd pricing one hope help ability this there We there. the have markets sheet, into us flow that balancing in our dividend so I very because part and like make debt the Chris, the I provide more for terms comment it's balance it to lease could get hoping of of get in a some earlier. discussed us and us and will if very, subject capital cash our momentum markets to year spread the the

And annualized, Can the two that. then, like? quarters, us your for remind test, four trailing, that facility. you Thanks Okay. quarter EBITDA that quarter, is a what's just credit Mike, is on single look

total It's right we way the a annualized That's quarter the now. test. do asset

X% the take You you it then by up gross a four. and NOI and it's times

Were Paul, and Okay. them. just so on going, rent the I -well, guess then understand maybe just mechanics I relief

interim to like to just you or would to two there's would Would offering there period pay that be am be back before after of relief of understand period up? a the the expect four when period rent one-year start guess guys it then trying basically sort starting I period. start? months the payback to You're I some end

That's that that to the answer gamut. a good and would say runs I the question

the same a each of payback XXX% have and periods sometimes of ilk. obviously requests sort are rent; of of rent; kind XX% we of for the or a those and one of So every requests deferral rent. the We sometimes and are negotiate they're variety XX% four percentages deferral

normal start the running tenant pay time, immediately is sometimes they deferral the at Other of start the short months. financial right of very, now, periods that's up idea periods idea they quickly again back we and the the will think And we and out couple into some we have their deferred situation payback tenants to a at it's after circumstance; upon them sort And XXXX of have how almost dependent but they tenants our after least some very of of pretty pay more Some give months as a we payback have typically has over. A run up them my that where deferral then capital the few quickly. on rents to to desire too, deferred tenants a impact and we sometimes on recover couple their balances we and charge back interest mentioned breathing room. again. an with remarks in build period

Program if Lending the for the that. tenants program all? for into how Thanks about Okay. just you're factoring prerequisite talking then does are -- that that conversation, to how at PPP rent And a or I that guess conversation deferral request Main or you when their is Street become

in most it before are our companies I companies. large or and said of as tenants public private Yes. large No. We do factor

we're working lot be the rent to So the need we except on them of most from tenants have funds receive PPP, for in pay that for restaurant but talk tenants. that rent. those various they to portfolio funds really the with to qualify moment in we generally in controversial agreements They government is at earmarked didn't a and if our these generally not us can that's as our what

to So it government, send rent. to in money the happy they say, form look, the of get we're we from you

type just rent truly early relates part of activity the the sort of that to renewals, were structures renewal it activity? any that it were leasing my question then relief there is last And particularly just or early Okay. as

we mentioned the of activity have sort so recapture was had No. so early activity renewal and forth. we early Yes, renewal and that and we no standard the rates

an rent grant we blend upfront so We value. much, improved or rent longer a some a we and occasionally often for or in call obviously net we a when colloquially, would us do much will which blended what typically asset reductions some lease, extend. And very free gives exchange

in a So renewals rent little term of the completely vein we in had early routine. first lease, sometimes trade for was activity that upfront that but the exchange on in longer quarter we'll the

next from Our ahead. question Sheila McGrath Evercore. Go is from

any or guess was on environment? know for more you rate pharmacy? expect it's do I differentiation And widen interest was cap than expect I between acquisition? you early despite wondering rates expectations just tenants out your experiential I but pricing I are low wondering like Do increase grocery what the to restaurant to and

would don't Tom, a pretty you maybe center, to you. would I there. lot which and I'm before think mentioned I'll I not a Tom agree entertainment start tough. I but think retail properties then sure I don't I there's of really comps may difficult how with today kick some or on the even some that's is it there's price shopping pricing grocer-anchored and I'm sure know, of

And and at we're of our looking those you industrial don't back industrial come investment-grade on them -- and for why investment-grade, two often just Tom, is see pricing still office office. kind more because now is only Tom would bid-ask, what some it's been with that The now out. a if to those two we before right where figure and agree I there said so looking think wide retail at there Tom has I very So assets is partnership difficult partnerships.

So Tom?

of is Glenn, lot just agree an not entertainment market. retail any Yes. there's type would in fitness a of activity the I just -- experiential

So priced. agree that not I would just been

the mentioned, we again a and partners industrial in our very are trades. and of there not fronts with office there's the lot Glenn As active

unless to XX-XX is mentioned below sell days. you're have generally really going percentage I which in you upward have it adjustment hold very transactions think to basis There probably bidder XX-XX a I had think I small that X%. been cap a for things the awarded some as on and point put rate earlier

probably product the is types fared are product with well market So generally I that just we in very really those number one well. the held the type is think industrial mean up e-commerce.

well very you we're pricing tenants and moved generally we'll credit by think hold long now have comparison. I maintained as offices I credit, between market And hasn't that going And So and obviously good expect see on and forward those prices as think goes year decent would end. term, the much. strong where just

I we interruption you. need insurance. business new Okay. guess Thank

been ICFC companies don't to that is Well, for interruption to been -- asking of as in think don't subsidy, a the as called of business probably but Congress know, and the few at it's insurance fourth the weeks the there called so we've the insurance helpful phase ICFC, part before way, because call hard Sheila, on very want it working for. the Act, want Recovery of what Recovery the I've you're last you to trying it in that. of business some It's provide ICFC. least government Act they

our conference concludes turn session. back like to over the would This question-and-answer to I now

Glenn Rufrano for closing remarks.

today. speaking very And the you much. wish I We'll I certainly talk us thank look everybody NAREIT. And joining to Thank next to for forward many you over months. you at of best. the few

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

You may now disconnect.