Alpine Income Property Trust (PINE) 11 Feb 222021 Q4 Earnings call transcript

Good morning, everyone, and thank you for joining us today for the Alpine Income Property Trust, Fourth Quarter and Year-End 2021 Operating Results conference call. With me is Matt Partridge, our Chief Financial Officer.

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

Thanks, John. I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. results forward-looking significantly no statements update statements. future discussed the duty actual these these in and company's may from differ matters to The we undertake materially could greater in in SEC the Form results Factors filings. from XX-K, detail cause Form and risks are disclosed that to and differ XX-Q, from company's expectations time-to-time actual other

alpinereit.com. will we You reconciliations of contain turn earnings release use our back John. can on which over find I our SEC reports With website call the at financial now our measures that, in to non-GAAP

the We beat in us Thanks, net than organization highest peers. dividend high-quality for ever rate success dramatically cost The cap year-over-year $XXX our and shareholder growing off return of Matt. generate public of company quarter fourth going well-located, in improved any lease increase kept of year our X.X%. nearly total XX% quarterly properties our We've a guidance, record quarter of strongest had the company in more of million full-year we the our our capital. allowed at of meaningfully setting by to XXXX acquisition a acquiring volume, cash average with weighted and

quarter Institute's of fourth from with million top MSAs the for during came properties XX invested at the across largest than rents the of the During markets in XXXX. acquired the half More half quarter rents we were market Urban during with Houston the fourth and acquired XX XX acquired approximately over states we markets, a different in spread XX being people the quarter. Land

the in how Houston. The invested XX% lease the the properties the in where resulted acquired XX unique and because term. if lease layer is making end elope most growing tenant results investment to fourth of tenant has tenant’s the that which land. ground-lease provides long purchase higher grandly The in were portfolio AEC in opportunity portfolio, ground-lease for Those notably, which nine due an investment likely leaves we a new improvements we Our operating then tenants new extra superior improvements operate in of structure to over the patient more the it in overall on to of the the of tenants, many protection or ever our to ground us if at term, XX residual to properties the a had a acquisitions the improvements own rents investment. revert value tenant the sectors, much in include transaction

portfolio strong opportunity in of purchased and cap the while has the our all average invested is asset This down excellent portfolio the the in a risk-adjusted market special did I returns. previously with we ground-leases mentioned, bring are rate the quarter. Houston a As macro fourth fundamental, ground-lease

higher unique quarter first cap XXXX, in our we this what rate and the stress was quarters line during Our anticipate quarter of for XXXX. on investments at average you more a from of therefore us saw the three with first

risk sectors real fundamentals lease end upside at Burlington, net our our including years. Auto a XX and -- investment year, but Camping assets Orlando the our XX representation going weighted the XXXX, more execution lease first where XX preserve At excellent mitigate our included take near-term Dallas, When just and Bose, including Teeter, Charlotte, to overall step below term DC, a and XXX of few. the consisted at average a where with properties well-performing value. locations of that square Seattle, was throughout property acquired good a totaling year, O'Reilly tenants X.X markets believe XXXX rate the Atlanta, World, full our we again, and sectors retail operating a number through rents acquisition properties Phoenix, acquisition will the Harris portfolio, we the look Tractor Houston, back we we for weighted occupied States, United of For of in remaining estate of acquired Washington at Parts, into year, Supply, long-term new name of residual love, the a Sports, with strategy they we the of our retailer once the our some Academy feet just look that portfolio of in through first and X.X% million million than in the cap market we doubled portfolio $XXX be of within strongest are in for XXX% tenants X.X provide over year states. in in of attractive average Throughout to

Our Grand sale of our top Hilton change Home, The our Dollar Walgreens, At Lobby, General, than Lowe's. Explore, $X Wells the Vacations value list $X Hobby value per Academy share. improve and book by overall properties. This to tenant tenants sale Fargo, at Walmart, a gain more include generated came top helping million, of largest cash million from book gain our over $X.XX and

Fargo Oregon sale in With is the sole remaining Hillsboro, portfolio. complete, Wells property the the in asset the Hilton office

acquisition active with have parties, disposition activity for interested in and XXXX discussions our included guidance, which help we in will sale fund the are this We property our year.

side turn focus transaction and competitive affords but I a be high-quality real over continue Matt. to strategy now, net estate With the acquire where the nimble market. execute us call in acquisitions opportunity to that, to we'll XXXX, our fragmented For investment our lease

John. Thanks,

and entire occupied COVID fourth As of deferral their performed XXX% repayments. all throughout John scheduled in and portfolio contractual XXX% including have remains well, mentioned related our tenants very paying earlier, year, the their of the rents our quarter base

third a a and FFO from increase quarter fourth share, the quarter, share $X.XX third of which $X.XX per per For the over the per was $X.XX share, increase was share AFFO $X.XX XXXX per quarter. was

over a year, increase was over which representing increase XXXX. a XX% and share, full $X.XX XX% XXXX the per For was per share, FFO a AFFO $X.XX was

improving $XXX,XXX $XX,XXX agreements. And last disclosed remaining tenant deferral under rent one disclosed payments was quarter and the to we quarter we $X.X expenses includes to XX.X%, deferral revenues basis and for management G&A have a to efficiency. scale of continues as which with manager, than net full XX%. lease more of fees million. year-over-year which of agreed to This of our cap the by organizational AFFO previously was our very through rent small to and a quarter, Our our positively external million and favorably offset repayments which of previously administrative points, COVID-XX impacted related increase meaningfully more General scheduled making agreement, year prepaid year, second XXXX percentage of compares per growth a a totaled year-over-year XXXX. of for the our a of was revenue the $X peers number decrease XXX to these are than rent X.X%, occur reflect of in as by

each growth FFO our the allowed X.X%. increase healthy us quarter XX% approximately the been of dividend in were ratios and at X% quarter and of to has payout AFFO respectively, nearly and case XXXX, fourth annualized yield in per have a cash currently strong by $X.XX fourth share. very quarter our As to we XX%

XX% regular over consecutive cash quarterly towards quarter Xth fourth-quarter the its our February. dividend in by for a increase dividend. fourth increase XXXX, IPO of dividend We the first marked our XXXX quarters Our and since quarter the of dividend in end the fifth announcing company our XXXX quarterly many as increase late anticipate

and of capital equity size loans, Balance We was OP our activities offering loan Turning term through units debt XXXX the $XXX Sheet, combination follow-on to our year. markets very the company, a nearly in and sourcing the busy issuance. ATM doubled and of assumptions, issuance, of million inaugural

the of of ATM is availability charge we per in program under quarter, our in issued of We price to proceeds enterprise through projected stock shares have of at from During debt year proforma on acquisition believe X.X XXXX, total net activities. Sheet net we million. fund very have to million. credit total issued common no near and XXX,XXX maturities fourth just for one of proceeds revolving fixed the activities our and times, liquidity to X.X than With from the net program other thousand lease average We common strongest year-to-date million adequate XXXX, and XXX,XXX anticipated value of available total with we our the shares net for of EBITDA our debt of In times, facility $X.X healthy coverage for net disposition sector. an of of through XX%, debt which cash ratio future proceeds a year-in-liquidity the $X.X future. Balance revolver share ended stock ATM $XX the until $XX.XX

an and acquire stable economy. in million assets $XX.X to significant release out annualized sell raise our support did last reasonable in-place straight-line reasonable markets of our our look $XX.X but initial place cost we not of begin provide of assumptions, for we at cash-based broader or and capital, into of on valuations night. overall to in XXXX portfolio-wide in a at rent As limited rent. to ability annualized investment guidance million ability of press This with a guidance including funds base relies We XXXX, capital number

full-year Our full-year guidance $X.XX to XXXX and share. range XXXX share per to per is FFO guidance $X.XX share AFFO per range per $X.XX share, is our $X.XX

totaled their rent just included COVID largely of previously AFFO deferral repayments. course And results rent mentioned, of XXXX effects our deferral I $XX,XXX. positive XXXX, having COVID their $XXX,XXX those in share As run anticipated per the with repayments

While the tenants. year-over-year those straight-line XXXX, recognition to changes for from create to continued FFO period FFO do per XXXX rents comparisons to XXXX approach repayment share do year-over-year instead to not the they comparisons during for our cash-based of in XXXX noise moving we because some impacted a contractual and revenue the from impact

to does forecasted credit Sheet of XXXX our capital and from the a Our from dispositions our some when compared XXXX -levering share per projected guidance Balance year-end de markets metrics, both activities. assume

our risk-adjusted period-to-period drive Alpine, ebbs for the impact long-term best for long-term growth focus leverage have do flows metrics and a on While that shareholders. returns the value maintained of we

net On In the subject to during market we similar of between XXXX million $XXX acquisition we our properties occur these at will transaction a yield full-year cap to million front, $XXX retail lease acquisitions to acquire and rates. blended believe conditions, XXXX. expect

sell volume guidance which not due property to $XX disclosed of cap at in do diligence million in third existing we and include assume Fargo subject Jacksonville, does leased guidance is throughout John property as Florida, between and our lone site we customary finally, remaining million to And including earlier, in grocery finalizing assets anticipated rates the $XX potential transaction and the Hillsboro, our mentioned Oregon. approvals. Our year, Wells and the quarter still the development office

we with our and and XXXX property this average redeploy four John years remarks. our expect to lease and the forward success thank shareholders I call Wells Fargo portfolio term now proceeds. look we closing the his their left the for to remaining, we to strong lease in is that, turn sell partners after weighted I'll meaningfully Given has over back want XXXX. to in improve business continued support in for With

XXXX and near-term lease to was acquisition strong Matt, such with of Thanks, be no a and with high-quality meaningful a excited we portfolio with entering XXXX are year Alpine, growth pipeline. maturities robust

this to drive will I want support. up momentum as estate we execute team of continued thank it that questions. open record-setting a congratulate At our their start has seek and of XXXX is a you momentum end will we our further shareholders value our XXXX real year for our with our shareholders. for strategy to on to tailwind All in focused for and be a to the time, fast strong

you. Thank RJ Instructions]. from And Milligan question of the our Raymond [Operators with James. first comes line

open. is go ahead. line Please Your

morning, Hey, acquisition to wanted I start the with A questions, guys. couple guidance. of good out

see to XXXX, slight curious quarters $XXX $XXX what's of acquisition of terms You what of for the end million your guys higher driving of calling the just decline in did get volume I'm could visibility couple potentially by we end of in over that XXXX? and XXXX. range and sort the next that what's in million that

Thanks, RJ.

looks good So, as far the as visibility the pipeline.

where we're everything. here things we're go? markets. and think a macro a Obviously, Maybe bit And capital of just there's who bets little in Europe in in knows kind war choppy that. our a market, basically I hedging

being just think on bit slamming and capital obviously pipeline yield. I'm so the just we're that we're saying not little I to optimistic metal a them, and doing So, acquisitions We're the pedal to we're careful. just and the it's do like all do dependent quality obviously but forth. find on high and concerned to as ability markets to we'd about good so not more,

little backdrop. bit concerned a more Just about the

capital -- markets sense. And that quarter. end around then on bounces just about That that comments, over your Matt, depending activity. you in makes times eight at leverage opening obviously of And talked the the

Assuming obviously leverage through dispositions on of as expect we in how sort you the year longer-term a are basis? about just planned trends, dispositions there, but and go can factored you are talk

RJ, months, the that to Thanks is efficiently. been the on in I over news and pretty liquidity good Yes. stock start we've able to got the think ATM we've the more execute the last few year

you guidance, assume think probably to throughout active our we're guidance assumes those we'll the range ATM minus I can of or of then within And to match quarter going forward. the end the be transactions fund So, year. on at the be going seven times plus sort

So, there we some in indication like we there. share what is provided. with -levering gave range that thought look some And we de on the issuance obviously,

markets capital ATM, some then be and to will and we John's certainly there So -levering see on efficient be the the point, will de evolve. how will

the out terms little what John, about the macro impacted same the sort 'XX past you of product? of pricing talk you're of about question, over versus seeing my seen then headwinds of couple Could in there 'XX. a cap And cap bit in has terms expectations And remain Thanks. of or the broader. has the this that we've rates? rates for it to to market talked make you of in weeks, just availability just that any last

We get fairly it's steady buyer, pricing as seen better a have as it as now. held right the not far

market. a looking if pickier a to in far wide -- We little if being are is as see to some bit loosening little the bidding there not as

out But off not pick at much attractive seen do market. a things more we'll So good are optimistic better. we we're for so far, acquisition yields that to good it. We're we the able at prices, properties but us, change still some we pricing we There's whether just finding but be haven't seen seeing capital little in have can bit there. the

going far inflation think are as as looking of a for people in lot I at the hedge. this

is So, of to you're asset the dialogue for hearing capital safety from going obvious reasons. that of the brokerage there type the market this

competing we're So, with that.

the last Everyone's it's about worried So was inflation XX-XX year scramble. now scramble. and that,

monitoring So we'll it keep and pursuing keep things.

it. guys. Appreciate Thanks,

you. Thank

Thank you. of And line the Michael with question next comes BTIG. our Gorman from

go is line Your Please open. ahead.

Good strength morning, kind the a are guys. it's amongst are John, opportunities, some kind acquisition bit, geographies, still sticking talk for market you property types whether the at? seeing Can thanks. of any about you or of different with obviously looking in there. Yeah, you just see divergence retail that

Yes.

very we're So on working sale we list. as top the I make Wells XX sure think backdrop, Fargo, as to of a want strong we create tenant a

hard of working impressing we're so And with quality of kind keep the you portfolio. on to our

So will the itself I good really with to us pursuing concentration. the into on tenant regards that higher going to to credits some make you're think up we see ledger

some And in markets good a help in so, excited formulate we're good very seeing tenant that we're acquisition that will opportunities backdrop. us it stronger

were and sectors in the say get locations it's to getting. locations. would surprised across of But pleasantly some all are we really So, I

happened portfolio quality. instance, like we really that our for that was pricing for quality of It unexpected quarter, to and the we the at get were to when of totally -- source that we're that. in And ground-lease of something reinforces the that and that just that a able kind For company. the fourth terrific us acquisition whole portfolio portfolio, Houston did acquisition those with happy type that

of those more do can we hopefully So going forward.

maybe quality And kind that about. that off you transitioning the of of great. talked That's just with

I'm net demographics, that Your not in it comes lease, talking a often curious. disclosures, presentation something is has new some and up about just so lot it's

on where the a is not are getting And underlying real kind another priced into something lot pick this up the that at market other estate itself, situation as actual the of what at the or quality focus you we a estate can of estate As that's the you real of real looking the bidders call maybe quality location. demographics? would better pricing same is

obviously force mean, look trying the to other conversation our I super because we're is Yes. maybe strong folks. portfolio compared I that's mean, to --

multiple into certainly mean, I it's that stock. we're on low getting side. so, in not the price was -- And our trading the

look the based through and trading but you locations, on -- just be the portfolio so higher certainly we've the should if and quality. And demographics

to -- can now. different where higher So, market we're multiple macro yield Obviously at people a "Okay, pattern incredible very they'll investing obviously, and our And trying those real fact largest lease in in much dividend that portfolio forth. focused on is so, estate as pick that, the better-quality net with up markets.” very oil tailwinds so we're to I for -- Houston look rate companies draw in strong out say, they Alpine a at so low Houston

much a has oil Burns ago growth, was John top. John that basically a study said, Houston basically when is bit who sitting, two a And being as of growth, very big major little what barrel, business-friendly economy. criteria’s, this about us. job airports, different with cities universities, -- Burns it's And so population Burns it, deeper did came highest all We had and growth. the John a shocking a growing with bit with strong on years digging at to giving and And little was do on which $XX a to lot

And a for within forever, shows won't how it just we macro Top it, look going you at probably estate backdrop the so, be then our look, with but and you strong X assume acquisitions. really real

It's some a quality, usually the I that when it's as is maybe as assets priced market, net to type would as the real and people add the as tenant of a rents that's see you there, mark in acquire. strong estate, that's opportunities thing those which unique and see But ability where real of other acquire a spends market lease because the to have an times lot us where gives being isn't in estate, of to value. residual value the opportunity is the on focus Mike, Hey, important. typically off that -- the would tenant lot those we the tenant see we're markets finding mark longer-term and the of quality maybe you for

Right. Right. Right.

opportunity So, in sense. that the at of people there space. it Last way. is just question looking the because makes a capital amount there the on other aren't same different

maybe rate-sensitive money are out the trying you're it? going looking get concert of rates there -- a got a acquisitions, as what just capital there for sense a it's care we Look with the or kind could significant rates out more competition market move move that get across? doesn't is it? there but a it's Just -- There's How to is XXXX is be stickiness up I in capital motivations. the sensitive but here X-month is lot going non-economic. coming there the lag? a be significant am still or If there to in to other lot at because maybe of you out isn't how economically of X, necessarily

Yes, good question.

that we're XXXX now -driven. acquisitions, smaller it's on where seeing less of these right So, been

a of end at the the year. I lot think that happened of

seeing now the rather on of driven. I than transactions. capital you're the allocation buying more think People individual more are size on smaller XXXX

larger there's regards lay. -- the see XXXX stop chick tight is mean, don't kind it product, at I we But I mean, a sort they're rates board. across ground that seeing do focused trades And on a capital of you to just frenzy with not some acquisitions say but this cap getting I'll because in on larger to call we're But of deep I that low are see that's So, tighten money. institutions, fillet feeding frenzy seeing very of crazy the that institutional a chasing. type their on not obviously cap rate.

into ground-lease, smaller in-between And that acquisition we're $XXX is us with would are that's a we're us, zone, that going range quality. players. If to difficult million type the we're we for for transact yield So, If the more perfect on. where on. where be and down McDonald's compete to we to better tough going be high picking were up would which competing lot

the is zone spot. in-between sweet that So

Great. for Thanks time, your guys. Okay.

Thank you.

comes question from line Janney. with Thank the you. And our of Stevenson Rob next

open. Your line is ahead. Please go

that the that fourth rate with Good quarter where to what's XX morning, the quarter minus full did the ground ex about guys. John, leases on for the the year. -- XX ground cap in leases? plus consistent addition that way you that terms in cap rate or third in to right down on think there in something the Did was the quality X% the the brought of acquisitions

rate. than Yes. expect, the It the leases we be cap rates we as our drove the fourth Cap ground quarter to on intro really mentioned higher average. that in And

a bit will, that So that that. little a of if was one-off, you did

picky going forward being we're that. and elevate So,

acquisitions from there But outside skewed the of rate wasn't away in -- right. that sort of low Xs, anything of ground-leases are no cap inherently? non-ground quarter? fourth the market All X/X Xs, from the downward high pressure, X/X the the There's they lease

Correct.

then And XXXX are to beyond guys? what assets ripe Okay. in What those the the sell makes characteristics Wells dispositions for of Fargo? you

I appreciate Well, a that just pitch, like the you on own too that where ago me bought assets feels -- we getting reverse are of kind just not must it. someone so But was they inquiry that. long fat we've gave

you we a happy know, to own like price price And this I mean, so, we're price, but, for and it. put is we say, credit will at like if sell it everything. on there asset, we want a to look, you the

that's imbalance that it's some really things as driving So purchased. on really it we've recently

got theater on for So a I too this even long of couple with music Alpine Not summer concerts, ago. that. opening calls

bit a guidance. anyway, so So little that's of that

how much one call was $X.XX $X.X NOI the million of Matt, of FFO last included in thinking should what about? a timing rough was the about of be -- waiting, should of that for me. how acquisitions? late it fourth quarter the lot think Mid-quarter then December we was of And Okay.

quarter. week of Yeah, occurred or within the it most last wasn't back-half-weighted It December. in the I all anything, but in certainly think it's

Okay.

So that at is run XX ex-dispositions, point? weight this than your higher

Correct.

the Appreciate guys. Thanks, time. Okay.

Thank you.

the from International. next of Oxford come Colliers you. with question line Thank our And Barry

Please your phone Your on mute. ahead. line Barry, maybe open. is go

Thanks, structure, debt It some the taking down guys, much. you mute. utilizing back Getting to so and paying Thank was question. capital 'XX, for the in and the ATM. on of the

Your there's fair year ATM, the that via enough there just the share or during follow-on? at up guys you liquidity some count get point we'd do go you probably share do count does Can amount. a a to and think look

that I think it's project continues be I the be that to quite liquidity, to going for to we've on to not we execute how here can determined. The forward. do happen. way to that. off way to but improved of over few the bit assumed tell last it's that and that's and We're far like the we it's that's the trend terms that a feasible maintain going said, it months in to going flexibility as me amount I'm ATM, how going improve, think one has it going But sit other or if I you

got you them? in different of of a with models couple scenarios couple a So,

do. We

answered. Most right. been the questions much, guys. Thanks All other so Got it. have of

Thanks Barry.

Thank you.

Yeah.

line from Anthony line comes you. Hau with ahead. please is go And question Thank next our your the Securities, open, of Truist

Good my morning, Thanks question. for guys. taking

ground What's on lease? the structure question using lease quick one Just on ground lease. those

The different bricks, and we And basically the obviously own sticks ground, along lease. the we tenant way owns forms. a is the lease in there's structure long-term and the ground escalations have that

traditional, a love about nothing with in upside. really So, it's obviously, position you're a it it. very because But we residual asset-protected special

for ground. optionality as a of lot holder us the it's of So, a

like years? rent Are What's over tenant lease again? they five in X% those escalation

escalations, years, are them of some them are or of some It options. with five some annual XX% flat the are five in escalations varies, every

tenant. the on depends it So,

-- Got appetite you. what's environment? ground this in more And buy your to in this leases

little if look, are what up if happened this discount than we we'll a the been with If arises that's portfolio set of higher have we them paid portfolio would it's a I normally. mean, had. where and buy getting and traded kind bit

hypothetically, buy much had ground-lease some So retain retail at be higher ground it, a million yield then a of to $XX We leases of to the some portfolio we you'd but just say out may able let's sell them manufacture. than off, opportunity.

So, rate. a buyer ground we like see of out eye But compromising because don't that cap for make for lot sure there's interest obviously, to something certainly not may keep that it. expect we're of do lot we're I an to but leases, a our

and and reduce what's stays Michael, John, leverage your on equity you earnings question. same? last and price size stock portfolio growing the growth the philosophy if Got my issuing to of the

initially So, step Street think Net looking right at of also then net now, multiple back some out Alpine the a -- it's And read let's -- take see, and look think you I Street back there it's and get leases think FFO little (ph.) Net just realizes larger. And we traction cost they I got was at off. lot they until to I a get on outperforming in to the need took a capital. everyone that market that that this bigger highest

long come I a for way sure. think we've

to markets the to really be capital lot in as we do need modify best-in-class. And we the portfolio don't a so,

tenant sold to everyone be going and this self-evident the at Wells we those yield So, we deploy once hey, through capital your acquisitions you in Alpine's to that price, come look have is where and to at very that it's have very list that the acquisitions, it's strong, be and Fargo to and we the place FFO that, multiple. have look investigate

So, all -risking, we're larger, de know as get that's good we good. on capital, markets of as lot like, larger, it liquidity, as capital at cost there's we we're look we until more that get a and okay, we get but the of very cautious people

it But of careful but we're we obviously given with -- So we I and are kind monitor know it. valued. we're very where attractive stock

paid for to wait are shareholders transformation our to think that I So, getting happen.

Okay, guys. thanks

Thank you.

B. line the next from comes Riley Securities. And Kucera question our Thank you. of Craig with

Your line ahead. is open. Please go

I circle Fargo to wanted sale. the guys. morning, to back Wells Good

that I was consideration quarter there that from you think last residential re-developers. some mentioned --

months than would given better ago handicap six the second, close sector? given And interest maybe driving First, have think activity? is pricing that that we potentially you the in you seen might can when

Yes.

part in large very residential the the of played certainly interest. a role So, it

the buyer players. of the because interest would very a in of -- very market lot residential that you because I the buyer great the play interest quality in so, say as is of mentioned, of, the for And very strong backdrop sector that and is and -- strong

So a that quarter bit. on regards second expectation timing, quite certainly a helped that's And to with close. a

quarter, see sales, the overall And maybe the you developers? residential far these that office asset some interest thinking I as given is mid-sevens, as it. maybe from considerations in regarding increased Got last were of tightening like

time have wouldn't No, a Wells and five because years, of has that, must Fargo renewal you they say amount options. left what I certain on remember, lease, almost their

to get So, to a to opportunity. developer, must that get wait development

it overall so, into their yield And expectations. just factors

want tight that say place, of With so got to player that because I a had live So, that. that the the the to in yield forth. having could -- big lease off pricing have and regards enough to you

-- Warehouse as it. I'm curious purchases at quarter. gears, whether Bass did Got I with you canceled the underwriting merger noted whereas added fourth impact all? to those Pro, your occurred Shifting in Sportsman before Sportsman's here and the that

debt, are And given But And -- talking million gone very Sportsman’s fee stores they to they're close that termination that in because very comfortable these strong We're They have away. got Sportsman there's be to with where may the the a folks, merger $XX there because a honest operations comfortable and of well. some have you, situation very no canceled, that's they've Company, did the acquisition. we the very they concerned sort happen got we before of and more overlap. the they strong now got position. obviously, but in some with a do obviously,

the and going expect Company further looking investor growing presentation to a at they're I So, that their as now be stand-alone.

merger, before but merger do your the we it we question, bought as canceled concern now. had answer with to the than more we So,

Great. Okay.

purchases a shorter-term about looks like were your Just few lease explorations. thinking the It made of fourth in the you quarter leases.

You some now 'XX, a in more have little 'XX. in expiring bit

market? maybe You were there increases any priced recall to or at leases whether are those market for opportunities

Most, a all if don't seen renewal let where think answer, I've I'll not but flat. Matt it's I

to they're escalations. is expectation the So, have going

a harder lot to think going renewal make to time. Yes. and the where just in rise cost the relocate the tenants few re-priced years going that that are change, a going escalations occupancy because options it's And market for Most market next to the is over at in inflation, of get given rents them, up. Craig, to in they're I to the have be specific at of

about of good pretty the the feel we tenants. stickiness so, And

me, for what's the sprinkled question. with of is more well? us flat acquisitions versus breakout you percentage that quarter CPI escalation one perspective, fixed dovetails the as in after maybe give is what -- a rent a what final versus Can any of my fourth sense And Great. there this from in round here

It's in more relevant almost are CPI. space, tenants, because most have as lease not very of net X/X the traded. Yeah, institutional few our publicly

our about In weighted highlight in have terms of term lower a are we'll than average bit with which and between come is, that would options, what's flat, XX%. from lease being benefit little increases the set the the the peers, what's rent rent annual, contractual X% the I typically increases. other, about and flat, and are half one leases half what's The thing

flat should rent flat come So even end [Indiscernible], benefit for increases. the we leases of in the some option additional have growth primary portfolio, renewal though we forward lease term, might from through those going at the up leases

Okay. Thanks. I appreciate the color.

Thanks, Craig.

Jones Stewart our from And you. with trading. comes line the next Jason of Thank question

is line Please ahead. Your go open.

think capital that good looking economy the concept and and you of back and morning. of loop to the year, sort sort at are comes way the I back from acquisition about Thanks, throughout disposition to to wanted the outflowing cadence and broader how that. of

flow you there about comment made the I and funds. first think activity John,

Yes.

not So, with the to looking we people that are see that's in the we want monetize, be assets larger more like feel strong and what to pipeline selective But we will quarter. so are going might even forward. for mindful that opportunities. we're opportunities all on we to backdrop so the there where we being hope we it early And year. have We better trying seeing it have is part of the the and very bring be very in

as bringing see but time, the opportunities. acquisitions just we're good we our So, buying

so market And way the the other. to not trying one or time

last does for factor your disposition Got side, said Wells on dispositions? cadence from the of that then you. And Fargo aside into the thought-process

very some certainly of but it with someone being wants these sell pricing, it really sell We'll really to on that. of as to interest and if sort aggressive assets, just we Yeah. just has do -- it looking that to not have time of On try outside into Fargo, Wells we the won't formulates.

of one, kind someone pay to really wants entertain If happy we're are not we're that to spots. our So picking our number, selling assets.

Got it.

Thanks Appreciate it. Okay. questions. for taking the

you. Thank

comes And Wes of the Baird. line our you. Holladay Thank question from next with

please go Your line ahead. open, is

traditional biggest on the us to you just renewal of build guys. lease? -- shopping this back the top give at see on morning, out and opportunity it be the rates. those -- MSA Typically, the produce renewed top flattish MSAs. good companies see the you go how single-digits would like Hey, renewal? footprint more net MSAs, that's for versus Can to assets top we I cover center the mid-to-high want for that Will the be

looking up broke to for to talk related particularly the you MSAs? are Wes, Sorry, top about What you there. of us

in see would the companies flat renewal, top are portfolio, the you be have your when MSAs. you on emphasis And at companies maybe after get more just But the we may the net net curious that's that renewals like there would I'm for mid-single-digit Yeah, the lease look a single-digit that Typically, annualized what lease relations. where be the renewals renewal? a you center top if that high shopping MSAs.

Yes.

X% to vast XX% them have -- Most think I leases, back great a of in great, going to majority options. really, my it's the question. increases of comment, our

MSAs, positive as so, we're in those trends right? demographic to see And continuing top

give our pay kind flat? you they know to and there, necessarily that tenants we're stay we get with because don't is the looking want us and to early do that. coming want so "Hey, maybe they seeing of to rent keep they thing to a will escalation One term " -- an if of now, that's us lot saying, you We they're extension

dance termination, anyway, a XX% a But exploration, certainly there we answer? an But and sometimes we'll out averse it's that as risk that, take early does to of Matt is or extension. be bump. said, or roll bit little that lease a we if X% help a So, little bit more

options, Yeah. the ones flat trying get have leases. have I'm that you some that get the more you the that the last rent have to pop, escalators is you're you that to have I the have MSA, rising, have that What top more guys a ones it at big you see you like replacement to XX% the do those. is rate those that have typically for annual lease in receive. versus net those for similar typically, are renew being a make you ones annual in tenants would renew be we over companies that come at when a a do escalators, there's the where inflationary and there that shopping the a lot center of assuming And [Indiscernible]. what do costs no environment, are But typically that X% renew, in you bump

options Yeah. Most embedded. of them all have renewal

So, that there's you where have don't basically they can any a one get mark-to-market. renewal not and option

That's much. for. what looking was Thank you I very

sorry about Yeah, that.

Okay.

further Thank time, you. further any questions like am to showing back and John no I turn the over conference for this remarks. would at to Albright I

to the call this for much going and with forward in looking new forward attending talking very you Thank Thank you. year. you

conference today's for participating. This call. you concludes Thank

disconnect. may have You great now Everyone, day. a