Realty Income (O) 4 May 232023 Q1 Earnings call transcript

Good day, and welcome to the Realty Income First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please also note, today's event is being recorded.

I would now like to turn the conference over to Andrea Behr, Associate Director of Corporate Communications. Please go ahead.

joining Conference for Call. for Quarter Income's all Results Operating you us Realty today First Thank President, and Discussing President Vice Officer; Vice and results President, Chief Financial our will Finance. Executive Christie be Head of Kelly, Pong, and Jonathan Treasurer; Sumit Corporate Roy, Chief Senior Officer Executive

statements. make in call, significantly actual be future may that differ considered any law. forward-looking During this statements securities company's conference statements the The discussed matters from forward-looking we will may under federal results

disclose detail company's cause XX-Q. greater will such differences may We factors that in the in Form the

will during order of We be opportunity Q&A observing everyone give limit a to in the call two-question the the participate. portion to

additional If reenter you may you to the would ask questions, like queue.

Sumit will Roy. the now our I turn call over CEO, to

Andrea. everyone. you, Welcome, Thank

to efforts quarter gratitude We continue us continued in and their to report continued momentum would first our for thank whose business. utmost delivering fixed express vote also our my objectives. solid equity income confidence. Team exhibiting enabled XXXX our investors One of I results, I would like growth like to to on our are to pleased

basis spread XXX fourth in basis last point of results, team's of XX averages. by X%. Our increase the which year an compared our quarter of cash and our approximately cap were a cap represents and quarter This reflected historical of the investment at first our resulted $X.X to benefits scale billion we a acquired achieved high-quality in of investments size is cash investment efforts rate highlighted the and rate above in points,

be investments is historically after in rates. cycles, interest prior in have rates rise we positively year recent an to largely the a have to trend correlated period adjustment which continued experience with after experienced our for rates, tended have we this As cap

portfolio, real Our for sheet a in scarce historically deal maintaining a is we which recent and reflected value their clients, we capital to industries. in transactions our environment diversified have conservative the pricing expensive the vis-a-vis competitive transactions. access are who is active is balance a capital by see single well-priced portfolio and and clients pronounced. is asset history supported testament served are leaders long ability the estate has respective a advantage and our an favorable portfolio today see for as even our of Amidst many acquisitions This announced, more pipeline of we dynamic in proposition large one-off spread to

history we growth our the taken Our of differentiated Recently, of steps operating business advanced lens. through continued the extends portfolio and platform of beyond the have size external our leverage the to analytics. development

harness of decades this that single-tenant The lease predictive collective and investing we've to insights data that objective properties. of and accumulated develop initiative net in the prescriptive over managing is proprietary releasing several

investment tool leverages even predictive our enabling in proprietary investment Our strove analytic portfolio team's of informed our more by management, and One the Team underwriting, asset best-in-class management members. made information efforts development decisions

accuracy, which and property test generate broaden grows, so across believe for our the as we significant the too geographies. power stakeholders value As conclusions we tool, industries, our this of business will types refine predictive will and scope

of As core provider costs. and looking capital for created best-in-class our a our debt have opportunities alternative serve for to thesis, part size of scale as means partners given investment financing elevated

Group expect and up close be quarter. Cumberland the to expected In we contractual rent XXX total stores Farms for of quarter, billion. annualized to high-quality the acquire from properties portfolio to agreed XX% this convenience the transaction to in EG brand, on Over we under second $X.X first generated from the is

this of as attractively valuable real is certainty to of advantage. sale-leaseback institutional believe to one-stop to ability expand transactions will close, but deal, particularly illustrated priced capital this by We for offer our As continue we a sellers only also our solution estate believe competitive today. not

Internationally, grow opportunity. the and geographical addressable market to we verticals new total continue into venture

favorable rent contractual for to our we million scale initial we new platform annualized last of XX.X% to establish international of markets derive pricing entry quarter, internationally from markets. This and portfolio into years worth of cash four After those pillar a took acquire extension yield our of ability natural in vertical. properties lease methodically advantage been approximately initial XXXX, X.X%. a This has $XXX indicative of now growth of an our total the and at is

momentum increasing billion of we investment strategy, sheet. Given $X from Consistent we liquidity, guidance acquisitions we to are our balance billion. totaling over our pipeline date, of April the prior $X and settled billion. our our to April our offering, guidance remain disciplined held XXXX our including and on in over approximately XX with equity billion continued our to progress forward $X.X with Subsequent unsettled regard $X.X investment bond which to

investment As has a lean opportunities. near-term result, us current our financial to the into afforded ability position

to Moving operations.

support cash stable profile. which continues platform durable our generate earnings to Our flows,

For to reporting of the the pleased report XX%, over last a years. of XX rate for we matching quarter quarter, in at highest occupancy first are period end the

Additionally, a a during to clients or the or point nondiscretionary principles, who we These leases unwavering our our generated are which new industry-leading capital low a XXX.X% quarter. and include asset in service-based focus executed results operate team core industries. recapture price of on rate commitment across XXX management talented a often renewed reflection allocation

Our and and real underwriting. locations purposeful and credit emphasis diversification high-quality estate clients rigorous geographies across industries, on our

strongest Many public pursuit is philosophy the the as all. our of rated not and such thus Our debt not quarter of of upon first clients, and simply are investment-grade our have contractual at at XX.X% ended which no predicated operators, nuanced investment Sainsbury's annualized rent.

where that We and of of favorable consistent public we sheet investment-grade operators rent health their balance achieving going from believe, are returns upon unrated annualized rated However, remain risk. We per underwriting the are analytics, incremental And their without risk-adjusted those our us attractive of consistency our investments to based an our attributes estimate unit with forward, X.X% of debt. we committed approximately of throughout better evidenced operations are disciplined that as comes history. offer contractual that returns and company.

represents briefly XX on touch of first April. X.X% our we Cineworld Despite in through which contractual rent. to like ongoing contractual quarter annualized XXX% and bankruptcy, receive would rent I to have the Chapter continued the of

XX, As cumulative we appropriate market discussions the XXXX, our remain of discussions client $XX at were reserves of reserves update this and receivables outcome we'll $XX.X straight-line with of receivables March the of on and these time. had Outstanding in net million properties. million. the We on excluding Cineworld

our operating as corporate report that like the and Before in our communities citizen turning the stockholders, a commitment would I in our we third which which published ongoing Christie, for to responsible details the over highlight call our to March, operate environment. annual to team, we sustainability

ESG to of progress continued our to to the the initiatives to building as page we our today's commitment review of listeners seek relationships Sustainability and sustainable to of fulfill all proud I'm our encourage navigate I on report. strongly website

With like I'd that, Christie. to turn to over it

work We of clients Thank our you, achieve number our to all on together We Team a on a of AFFO quarter our stakeholders. One of Sumit. of $X.XX behalf successful and per delivering with approximately share per in quarter million of an in would $XX.X of XXXX of in $X.XXX revenue resulting XXXX. from share first growth approximately headwind highlight the reversals, reserve AFFO rental the benefited quarter share per that comparable fronts,

paper weighted rates revolver in headwind base. in as similar XXX basis was commercial than an period higher average interest it was average comparative growth short-term approximate interest In addition, represented the on on a rate and year-over-year our approximately borrowings points higher XXXX borrowing $X.XX

X.X% was AFFO our Excluding share these items, approximately rate per year-over-year this growth two quarter.

stakeholders As we evaluate our core remain and the opportunities for encouraged term ahead. fundamentals our we business, upon the are over delivering of by long focused

the to busy we unsettled April, market To Despite been billion range we to of represents and resulting and rate billion raising average XXXX, by AFFO resulted revolver our raised variable X.X% $X.XX of maturity transaction bond and of of to closed a tenure years of growth the range. new to issuance weighted It of near-term we year notes of end, X.XX%. offering, the due billion this senior share yield are end of capital to front. unsecured reducing which guidance has equity. $X the and almost due notes our excluding commercial borrowings volatility, The to us low $X.XX, that our continued a range debt $X.X in closed satisfy $X.X senior paper issuance allowed annual semi-annual at of was forward year on In million increasing the and X.X% exposure $XXX needs in on in updated midpoint XX. productive approximately have our capital after $X.XX zero a April eight per million which while in $XXX a X.X% XXXX comprised unsecured of start

X.X% per has stable growing for since great to our S&P time and consecutive of way rate years. for dividend XX March, XXXX, every Team growth XX upon we prior the we record our our increased an $X.XX period. listing mission Aristocrats raised Dividend in Index and the our we diligence only for having in of Income, and year is In representing pride to our from of a Providing being annual take the XXXth at to the Realty core dividend public one in dividend like for focus build constituents growth last paved would the our consistency. year One whose XXX thank I continued as our track share,

it back over like Sumit. would I that, with turn to And to

collective risk-adjusted and market to on the which uncertainty leveraging and we investment team portfolio access capital Thank We scale, These or very for include stakeholders our you, by loyalty When creative during to value advantages continued inherent on close produce and well in company. our to opportunities a our their Christi. unique continue support, opportunities amplifying to leading stakeholders. relatively of members as look thank acquisition and trends all capital dislocation of behalf with believe clients provider. trust of the we leverage our positioned In periods source, unearth our with best-in-class advantages attractively sale-leaseback strong combined talents our priced platform. seek conclusion, competitive our we to are underwrite our returns, we of to

can for we open that, up with And it questions.

from Today's comes BNP Nate Crossett question with first [Operator Paribas. Instructions]

I last the spread wondering you then What you you versus pretty U.S. deal usually the amount give. number rates, cap the low. was about a And quarter? like if U.S. could the in I was of deals was that's and think Europe cap Europe. talk just the year, rates at on looked in flow of

quarter, basis points I there. to there's want if think same. the XX was is just I note know anything to But almost it this wider. Europe

Thank Yes. Good you questions, for questions. Nate. your

Let's sourcing start numbers. with the

XX%, around sourced when markets, if ZIP which going into started you in international been versus For international was go X%. $XX XX% about composition we the in billion product, say to worth international would the U.S. markets. of has quarter, of roughly we I XX% plus/minus this that that code, of back the

within is particular this pretty So that much range.

little particular Around is international what the near side till, first sellers the of have last year. place, towards started by that you was term. rate much in actual market quarter quite of What contribution quarter. this quarter more And not didn't trades issues XX% might And XX% of over these versus international -- say were the and expansion about in first the I has saw international noticed, year and so have what are from opportunistic lower have of for in in you traditionally that the this delay fourth to through middle been norm rate the closing I year. on this the year, recently, than but But this and volume quarter however, end And cap their in driven same quarter third obviously was would we driven of making reconsider particular international main U.S. what quarter. of We or we've these markets market in closer towards to coming in the what's transactions market what's more other last idiosyncratic what the markets. fourth of that's international the year. in a closing a the than reason what side that everyday that that's we quarter some business the up of we call the vis-a-vis The last we largely fourth markets. redemption taking is of the first seen. in the to the quarter, of the I of contributed of potential And needs. U.S. UK refinancings resulted of adjustments see end cap largely substantially markets, both finish the gotten the XX%, cap rates being some say, would the or higher the line has seeing bit fourth -- experience the end quarter in the would amount terms

XX higher I've by able basis of get add, that their buyers is that the might being experienced rate meet cap excellent So things just point off this driven And achieve. books largely explains product to who issues discussed. the this were that I to wanted we by some to idiosyncratic

the seen... that's dynamic we've So

you And maybe That's one yields. one below rates yields. then just there? Okay. what's quick describe development are Are commitments can happening moved? on those acquisition notably old helpful. the Or maybe just Those before

Yes. exactly And It's Nate, the nail you've that. on hit the head.

much obligations longer have development know, time. you a As lead

to but first starting through quarter saw move quarter, So it hit But we numbers, in what this say, market a the of to the quickly, three quarter fourth we the that actually largely ago traditional experiencing transactions yield hasn't last though the quite year are the moved of closer quarters I over would up, year, see should seeing -- in creep lot you couple because four in next the struck, of quarters. it's or you're filtered and expect of as third what investment you to what you see acquisitions on quarters development ago.

timing just a issue. it's So

RBC our next comes Heffern today Brad Capital from And with question Markets.

increase was one in categories and given the increase wondering talk you through takes the right the the the why at guidance guidance expense on and acquisition could only of the direction? and Christie, puts moving low the $X.XX end if some in

Absolutely, Brad.

the towards half $X of I first, looking to things in had of over of year, our conservative increase remain acquisitions the terms remain the what and think in that discussed we guidance strong. and Sumit while billion, second really front

we're unfold. has and really Sumit here wait see as As discussed, things

we're terms that that, we're the you transactions some thing, this see been perspective, can from and we've that are to last I positive revenues. of that, on too, that we generate my April. that the ensuring of in derisking focused of very the our cost articulated, we've of remarks, sheet, the in that of and year. particularly capital may balance seeing think you we've at the years mentioned to terms is above in terms don't the disciplined been executed in terms the a other over guidance really that G&A, on during the debt our finally, focused unfold terms prepared I guidance in I trends headwinds further that looking will that of of really to through that of second believe this over managing and But of macroeconomic year and in half where benefits that in we've the G&A We're the competitive although size the able trends alleviate the backdrop, And vis-a-vis think And with see it's scale. tightening and and can of G&A. of saw remain you

we're that an expense following and positive to property the able we've margin finally, there, in from trends the And execute on tightening just perspective upon. then been unreimbursed

Sumit, this EG more of just thinned those seeing then, opportunities these what sale-leaseback normally very you are deal, And see? And has would thinking large also Okay. out? then Group about the competition deals for versus you

to wouldn't out. far No, as I no, go Brad. say it's timed so

have address out to momentum it these given remain with is, believe momentum near-term expect some rate to at do with. large with the know of very we interest that a I strong. are of we provide has how the And that capital the alternative seeing there capital the deal leaseback continued, fewer needs environment, be what to capital, that raise in the drives financing that help companies. to to sector these being companies billion-plus what fact, of deals, many to issues lot but don't play In what continue cost out and will sale banks banking attractive a I are going financing transactions to

EG of many, some trend balance concerns option address many And sale a path go on leaseback. Keep continue. expect done leverage this they to the They sheet. down in mind, they had had we chose And never that that for the largely that had to years. to

why and should our acquisition guidance the increase reason that's felt behind billion. $X -- why we that's So impetus the we by

of And our Dennerlein today Bank next Josh question with America. comes from

on a Just deal. follow-up the EG Group

Just curious how to came your deal further that together with partner them? ability and maybe up

Thanks for the question, Josh.

deal with choose for was shorter down going reputation, of spent I Neil a obviously and awarded went down EG were obviously the of I is to the process. a them did help as a So go the capital conversations competitive out first when played time a we and level for sale EG is market. awarded had in calling based directly path well. by of high their of been sale with we we And This path run capital along while. U.K. to TDR some the they We Eastdil. fact We our a meet when felt while, was It term. were them. when ultimately developing leaseback in in interest they through. needs We leaseback with relationship this Capital, on name providers a well-established close have like a that contact three and knew relationship the were there close with they're think were we surety deal we on finalists, But to relationship. necessarily that started the And had have them. to benefit didn't of our that, very

those and had us what favor. end. that's to certain I and the creative meet ability deal asks And be to asks also, our really believe, were our got accrue ability our they the certain at So to that there

being bidder. highest towards the despite awarded of us transaction being So I not all those factors the think us went

maybe Okay. the guys kind your widen you And about lower of growing the little quality expanding as tenants way a exposure think do maintain a bit. then changing to or to growth? and How topic credit aperture

that's a Group very just EG conversation question. Josh, I'm the go going Yes. to to we good had. back actually

the high ZIP in the ended all a actual available and they of Farms won And If were the X three And that effectuate financing Xs, didn't EG and of the And that quality when low private sale, particular XX% Cumberland Cumberland real pricing portfolio, very of remind dramatically. But improved, company. it to you bandied interested the at was natural years improved group about estate. that that at want look the on any being sale time. demanding being in what That have the was well-run the code. portfolio assets very very, today, coverages as Cumberland ago, that were the is the transaction, say, sale-leaseback just they up leaseback, want operators Farms. this would Group for was Fast potential only forward to obviously buyout. four-wall was Farms was I these I the

assets, accomplish to at X.X%. So the we able were same assets this exactly and remain the transaction

and you where where to to the you the three operating that's in high very We assets, operator exactly were the we And were see performance and convenience that years able we Group of these the sub-investment they price low grade. the believe it's have When the is credit business. store see But warranting can was EG assets, look a assets. they in that are compare established to quality certainly these Yes, that look they accomplish. at the if the EG Group, at history of you it it a in of if ago same. we good Xs Xs, in UK, performing

us okay, concept yes. real XXX front spread everything So operator? you're risk-adjusted in The And paid into inherent a us, returns and points XXX risk for additional the you are getting of play forward the for fast points, of answer that's center basis it this was where estate, resounding, is we so credit comes for the basis being on do. say, you in and now you and

being compensated. are We

rating a is It something gets said underwriting. or that for flow so investment we to. of to on And rating out. XX-year the of transaction something is pursue. or the underwrite risk-adjusted look not may not ultimately, rent the before leases if on consideration we And that we that the every fact XX-year makes us, going seek basis. is to at we taken are despite may grade byproduct that have actual it over we've collectibility this that It But the continue sense, it a into investment-grade

And of Michael from our next UBS. today comes question Goldsmith

you tend you Sumit a by talking about momentum lagging Can the indicators. continued to started be -- business. little talk just in REITs call the

of pretty this Because in and path good -- and can So the visibility continued understand how that very like the trying you about everything seems of you long feel have about Just talk quarters. into solid it's you have backdrop? better has to business kind that the momentum? it you the several the been been where spreads a last

Yes. fast. are a Every day, great Michael. moving the That's a news. other bank so there's question, in Things

News fast. super is

months. and the why at are we a Even are that, though where so And how et momentum. of yes, XXX%, And every we it lagging, indicator, we our there be when continued the And fair hope looking demand. but market, to literally gives re-leasing about in still business generate XXX% continues I look, can weeks, we day. may think play continue cetera, this renewals that spreads, use we amount like fact our phrases be a transactions, me seeing continued do these lagging product, it's to for do

of positive with we manifests that itself in it the the And market. share some spreads re-leasing

on the what's are forward-looking which we're yield with the of of that more we discussions. what that of the drive are having? the the our are side. associated is statement are The investment What What's having those discussions a continued that the discussions second discussions piece, then kinds having, is we that pipeline helps size much

$X.X and $X The that me three of continues income our favorable the momentum. fixed we all have again million of period $XXX on able billion continue close were think in a to fact months, for I on there that in within we of sorry, the of equity $X.X us very even equity, position. able of unsettled fact us, equity gives available market, to we that side, were be billion, unsettled confidence to million raise -- a capital to sit that give to confidence continues that

So we the opportunity. have

the have raise capital. ability We to

We have the business. positive gives little what the to have a achieved. north ability us more on movement make spreads rate historically with markets now in international that to a of for the the continued And we cap we bit starting me reflect of confidence momentum say have what side. That's to

is, up source deals? My that? international Can from And you've deals Europe? like you in Or there? allow does that that about advantage opened better having office to follow-up question it looks bit office a that does should get an Should talk the we more little this mean an from expect benefits you any there throughout -- you tax Amsterdam. are

we created Western and give to been or substance by needing able be based Netherlands this needed And was we the open office driven allow I was grow by markets, flexibility markets. continue us have structure to largely why flexibility. by to able international having reason tax have to Amsterdam that in employees create around to the in This to we've UK international that satisfy an largely structure The to us Yes. to the in this to primarily mean driven question the a the Europe.

the what's of core the continue we most in in in So driven hires UK we've hires a begin as countries of be to couple of made. will that's reach terms some of other But other and largely portfolio. size our these a to that potentially

help that's a really an yes, drove up and manage folks the hiring international business. our few who can Netherlands setting in what office So us

next question Street. our from today comes Harsh Hemnani Green with And

of that of the heard out. closer are then you're Do that in quarter that we've perhaps some something cap U.S. rates in say seeing and this a first fourth or XXXX. you that to runway as those perhaps from that trend second every spread value spirit deals the to So perhaps you benefit rates your the might cap moving upwards? contrast peers? the relative during the that And there the that can Europe, And European expand quarter, you cap tailwind that there And X.X, still is peers? over is understand happen Europe the not too? of you're for being quarter to topping but peers to idiosyncratic rates that see only not mentioned going in quarter the seeing started the the to -- Is I in question your in more

are Yes. Thank look so see we moving where bonds the literally for that question, to our the wouldn't other. U.S. more here as Harsh. say far markets I I rates have even go you in they the your in just on XX-year price cap international the than at is mean, one top of

we ago. year that today advantages had those on they're a So

other. disproportionate movement or expect be in don't one I the a geography that So to

Could said these to of rates us, today expansion as And was believe a providing to was the in one of much rates used we is is rates that X fair advantage to peers, in experienced driven is cap that I banks our that as by developers banking what it, the largely slower X.X some the however, banks of correctly lot you're lot that But financing to as we've know, situations, continue that there Europe move. And that seen of being U.S., lifeblood that of say could market, is continued rates. to you not uncertainty up. cap it local average, the terms could we present in themselves of that There's in a with not another cap Yes. rates. it you an here crisis think caught and say that largely name months, And word in months. regional movement call last, soon situations cap see over vis-a-vis garner but have issues? unique they've of the pops up. more not operators. other we Like to right, a just I on were over cap in start But as behind than estate the it the the that's see other market market real don't additional idiosyncratic

And you say cap rates I could of cap why so is there this That it the and sales, it subscribe to cap we going rates. just have I'm fact possible to rates where the for that played those movements that has game beneficiary, our I could then impact has manifest we an is the But in situations peers, if think on I could but remain it's to like experienced, hesitate where itself been played that it's will, Yes, again have out, possible. out which today. be have out. sure that settling if is not a in

all? what Can over accretive? versus the for these of pool look be capital That's recover? That's for couple best you go you've Past Has that's will of course for couple And going income if couple where uses you of like? then quarters, the The do. where up. this and a asset to assets of of better out to give use calls assets at vacant. years to demand normal us business, in that changed vacant said color. the for asset the sales and past all have past mentioned your sense you have helpful those the kind that for we assets be And going say were sales and buy been what going the is buyer these something

think for Harsh. can to experiencing tough asset. is much sell What a accept asset. you a price we And question, there are are if price, any you the I an That's willing pretty is

that's you vacant what in really these we it unlevered address. to wanted short-term lower is sales single-digit And get because IRR, been a felt have were was the didn't prospects that of the that high back, what we which matter, traditionally the But assets unlevered it's on because in driven about experienced, traditionally for one first justify even just holding assets. that long-term us prospects we if to IRR. look rid like all or X% accomplished needed to of largely All or have quarter we two we than by

So we go levered profile. into double-digit to to experienced. should be it we've the I that's And return back And traditionally think able that. gets what

the in tend don't own out a of of lease. business to of control location of these into assets quality do the to who so. These assets. estate assets. buyers are enter want want market, to want terms to buyers I That's the of want They profile. to institutional the In the out most to and real the are run not to these a that interested but local want this that be in say that They buyers buyers, buying profile operate would folks

are that Now little perhaps in operators in the to demand from less markets challenging, course, debt largely the would But more a little buyers. would we around. potential sales developers used mix. I that driving ilk I say have, are process. owner developers throw of given that bit sniffing the past, there's of And keep But today, a the it's

with Scotiabank. today And from our next Greg question McGinniss comes

imagine sale cold be financing. you to if targeting? be and don't know who have be Can sale-leaseback having to consider now. go might didn't that with, happens I through finding open operators calls just have on brokers the more that's whatever past, conversations there's or but the first-time would tenants maybe about or of how leasebacks you you in it to talk again. I operators sale-leaseback newly touching types considering you're just about So

estate are of through the Yes, U.K. like folks we've list of well we one U.S. of the here sale which of source I'm to details, with identified that and sort it's who to the a into are obviously There something out reach been go when the the business, and -- will obviously But speaking became that, we Obviously, that near tried own them folks that are and a curated I across think a out very consistently we've believe slew going it folks as There avenues of those we do through. that do be Group, the board. Europe. Western to have not who as estate a in already this names very real reaching identified lot real can and we are Craig. capital expectations to happened term, to imagine, to just source. similar leaseback is talked of that. We not you we EG it very we in but didn't have compelling the this about, travel that in we've so which consistent

the channels other worked investment have who may who are places colleagues The bankers, have an more channels, those brokers, traditional in certain in into places.

we remain our continue And transactions. to those that of the continue of sourcing. are avenues to avenues source to those All exhaust

about kind source I multi-parter. a then just guess volume bit talking deal here, And of a Okay.

out that some waiting are a IRRs it rate deal of the a trending unrealistic of you're rates that And which just now for or So source you deals enhancing about level third, the much is maybe bit? of do some talking have when cap where on financial the how settle cap waiting just was do past, by does first, you idea probably the include have Secondly, volume past. the to in deal think down, exit was thing expectations? sidelines markets that of the sellers sellers volume, sense driven

So discerning it higher yes, question, real is where same today get but it when having interest a following that was the rate If say than lot lot more of unreasonable. of up, that are sellers it Greg, lot because as is expectations sourced would six it potential work pool cost out to They the they of the to a is sidelines. a answer when I we've your capital sitting environment definitely our deal, to ago. rates somebody reaching first that months estate on and cap source cap does recognize comes in no have are a in are the included folks, even much the of buyer in volume. us to

their So they're rather than holding just back. tainting product,

we quarters can't lower prove billion, $XX the and it experiencing quarters billion, last billion, of first last in I $XX the sourcing than three slightly look, billion. $XX the the But think is $XX I look it's And quarters. at were Those before $XX were our had this if numbers But XXX%. that. numbers, year three that you two billion that we

and the come it that's going still So look, to to a think we and they the a to particular as where need sellers them a an ago fact rate. few continues, occasions was be months either some okay, see are out and to event, and push It's a rate, obviously we said that said, had We've cap some people cap that They've about meet to releasing could of we no, for deal. done But us. it getting refinancing said, come is is months you was we us this ago, I higher have had say, in say, these wait came sourcing grocery longer too have scenario longer we or those we in of And I that we This And what accept willing number. where to sourcing have saying, think you, healthy X or as a okay, wanted we that this can't. played of going months back four very "Can that? turmoil rich today and start think we we well. ago. numbers are I operator five in

willing we they to but has do that level transact And Our could moved, this. are today. higher at of capital cost

it's go which to longer wonderful continues, start this But side how which lag. for this out. creates out. sourcing I is evidence I play time, lending obviously to anecdotal on of it taking starting a The And opportunities So why itself turmoil know expect to the us. numbers always one is there's is do

our of comes Wolfe from next today And Citibank. Eric question

banks to being follow headlines comments said in you up day. also other of on wanted I and your what the a ago just around every the new sort moment

for to now that started Just open banks on curious industries whether their you. anything I'm thinking rely has that's happening specifically already right regional credit. about opportunities with up new

mentioned just that anything bank some might see local But developers. I were you to opportunities some on historically credit that regional you available today relies where think you?

Yes.

when it the it's I as to capital very is multiple debt lower fronts, are think, sale-leaseback to cost up than opportunities The what of that opens Eric, capital, for tool markets a especially compelling. on that's raise comparative available us. against satisfy. products today, able raise Obviously, compared

these up situated with I to on as alternative lot that area of opportunities. going create to going that traditional cetera, traditionally have going lenders we. participants, managers well. instruments nuances well their capital view of around who it's are opportunities it's either equation. still can capital think So But there just source, And users are as the obviously refinance doing to a many they opportunities position because the leaseback. front I to because capital few that more need a think have akin think also you on and secured that of today situations the want sale side in asset think advantage It's in open about or yourself as underwriting I -- because providers, investment. those very traditional you play debt as very from capital it's to And create of would do participated of don't to And I you fewer to your in a raise that stack how of are an think to et take

to on assets. there liquid for curious you for But then for Cineworld, percentage those And be for market to sell theaters. think I'm presumably helpful. be sheet think leases to And needs market just That's restructured, you you. what I once their more question assets? a and know small happen just will specifically, do a maybe there balance a

consistent I think so, saying around been world in what with is discussions. a Eric. Look, remain I've this in specifically we

planning this a when for name, Cineworld new get been which positive So out going that. was where emerging. on the I'm very I date some news into capital. morning, able think They've actually attract they're is they've not to to There put

in are around alternative There So I quite is think for that portfolio demand specific absolutely that is high shared certain positive. But what all of our inbounds. have are on uses. I locations

ultimate and some these ways, of going out process the through is in of So best this what highest locations. accelerates some outcome. of is this And that use playing

by hopeful of very be actually referencing next are honest, about quarterly so good we like play small Cineworld start To going speaking time behind we an I'm to we out, assets you pretty of is, will overall our just that a what call be It that that to these very these And the situation. opportunities -- think very start look, we those to portion can fine. this basically to have are. all us. feel our portfolio. can be we're you the repositioning alternative about we been And and opportunities about I've some use But said,

And our comes next question St. Haendel from today

Mizuho. with Juste

on line Vaidya the Haendel Ravi is St. for This

total quarter, your of watch you ABR. X% is of about list Last Juste. commented that

is are that you theaters negative what right wondering on now? Just categories outside other have . the monitoring or a And view what of

question. Good Yes.

around watch today Our X.X%. is right list

out, it industry. As the pointed by is largely theater dominated you correctly

in are Some to that just of like. real mind at. our is the a outcome view location of we the is continuing our not other areas estate on that And keep the list ultimate issue. look that real and look what the is It watch always credit going to estate,

dictated is desirability estate combination underwriting. So But it's a those long-term locations the combination a ultimately, and real the of watch of of It's credit. list by operators.

furnishing. say, the along with like more So discretionary some there out theaters, type concepts the restaurants are would of in the I home

care that there. of few But of other and well capitalized list. that some what day watch the very businesses that's you'll very you find mists on are not the the centers find are will There on the

here. more One helpful. That's

movie pricing like theaters said are large would range? Or -- selling conversations in of theaters, your such that of been -- your as consider it what what in watch sold list? peers your terms the of [X.X], and you the was theaters a other you at One regarding regarding component

cap we really being and theater those feel everything I the that any to are have we've of good engaged you we that We to view the of especially ones to that we've so we our of be us. best that on to unsolicited had assets, in tell point in have resolve And we is this try can rents done rent numbers. rates that to for we'd new that, developer. those us, hold just a lot where to we if get view to much are then rather bought trying now analysis. that sell had be Yes. That's be to find that sale, own And being And calls. discussion to behind the And adjusted my our assets. but that a these that shared the and et hey, don't cetera, assets feel want a are view, cetera, with Cineworld having off shared once of but much details, the is like, asset. closer in the hold that's let's suspect it already actually trying some getting and full told is I a pricing. get we And what value investors, reposition for outcome already into have would way the control there and understanding lot assets Cineworld our at then of to market choose can out there has on put news do. We a in. today, that And like economic think capital, are want perhaps these to back And with assets their priced been best we more create figure truly with additional And that out for be it et redeveloped certainly going I our the to renegotiated, much probably we very these that we is. value but what situation. go is before think I these to capture haven't engaged discussion start date I person haven't create out needs

today next question with Morgan Kamdem comes Ronald our from Stanley. And

quick of A couple ones.

back Just international portfolio on comments at the to the XX.X%. going opening

driven. Just years, thinking your it trend tax different about the forth. where in that can there's number of so could next Obviously, But that opportunity how in go? couple mind, number obviously,

Well, these represented XX%, they XX% last transaction couple of have our volume. still of quarters,

I a if time we higher up doing for lot get normalized over situations up. was more that transactions. at So when us XX%, clip drift to that continue It more And do play much expect more maybe into a certain even out. back to were clearly, drifting should XX%,

growing pie. at new keep reach our reach and look So hopeful out to like geographies, that especially starting to bit seemed time our compelling little today. our become continue more we a a at are new this, of and within a more geographies bit to I'm Look,

continue as adding et So a the new enhance see part I our portfolio. keep to be grow cetera, of continue geographies, relationships, this overall as we we and XX% to number bigger

two weeks on the are couple been to a over I verticals: just is with of gaming, the forth? thinking so one, sort how And has events what those? update guys opportunity medical if looking don't but Has it And before, think down like? could quick slowed about on then which set Great. consumer-centric and of I the just mentioned touch past you

interest and tremendous of Ron. to have ever the to try continue we replicate Boston, to amazing in if in particular work type with a similar we just Boston on asset. to an be trying able Wynn, to to continues similar markets. we gaming one us, got to find So of And new hard what transactions replicate dominance be but will I of at partner know that the don't we'll in It's Craig a

So transactions. looking we are at

for still think, a is I it's at accompli. to a bar which hope bar. grow But we -- trying work that there fait we product to that it day. I but there is expectations and able the the perhaps looking that works are if transactions involved, that And not good business, for is meets our news is are mean I the out us understanding to higher. of something And through. get are every can We parties we is pricing and part

been that the very phrase sort we very we've So hopeful. With portfolio our obviously We've to are we been coined we business We've consumer-centric, just that business. an of define a that -- of area Look love. that's in don't of of -- into in. in fourth with I we that helped accelerate part business. the quarter the last interested again. want dental and the thesis get did And the transaction that year, to

right ways, already our participate think business eyes, that potential the see want I and getting that in we've is upside variety this on estate of business. we we to that And defined the in of I real that shared a is reasons, front think in I side. for some a like

And on for the of of slew of so again, transactions right similar health I result will, who us operators partnering a a share care, with in the philosophy delivery forward-thinking I think operators, consumer-centric side. hope,

areas So of both remain high Ron. to interest us, those

And comes question Thalmann. Ladenburg our with next Massoca from John

Both on the here. our market

same-store just one credit was Is kind there in [indiscernible], a of that kind question. some issues also idiosyncratic? something was earlier same-store of franchise was So have the decline of decline in this or I a that's explained, I'm but what of portfolio. kind your there which had operators else driving year was Obviously, QSR wondering certain that. just

It The was news. continues growth million of specifics more obviously, same-store drags $X the we growth a this basis in calculation, AFFO this that basically the very sales share if concepts overall the the It's of the not to our on portion quarter against overall took a was when flat. same-store reversal that drove was is benign the QSR XXXX we compare core small look in that to It's same-store number. just first look industry. that why XXXX if explain to is no. versus looking that, a our Christie -- look, No, net couple reversals growth been point. in allocation, positive points at very doing Boston there 'XX same-store what at reversals the was by were what of around that what think, first that's took a of at of we very largely have same-store decline at that -- driven And for had in quarter, numbers didn't X.X%. quarter. our quarter be you well. the function per portfolio, first touched you was have are in we would Absent very market that I But particular numbers you

the been said, of it's So for year. in last these . X.X%, reversals at it couple very I But a to we like had around of quarter first not were overall, names. specific

the base kind have stabilized Okay. you view deals, turn of what's on . outlook rough of overall you And things that of specific kind industry? strength consumer? tenants there to that restaurant what's at year, franchise the of look for at of all kind just kind the of but tenant talk the maybe the the Or continued when when given new

the had John, Outback, growth. Like very Yes. the depending Casual continue too It's what They positive expect, results. not would dining you is long results concepts ago. saw to post on good concepts, some I same-store

they're that's already as there list. -- nothing But part of story. is think part watch it's I And of then see the to where But big our of It's some that on. based doing pass on we had areas of portfolio what today. two other mentioned they're at some two prices to some balance level that similar see well. is expect struggle. the I this our a the we And has look I Chile cetera. they not But don't are smaller which focused our and going largest are increase do you smaller all of concepts, expected that or it's concepts. are Thankfully, concept et have again, sheet disruption, exposures. new to have but costs, through of none we a wherewithal not if a

Tsai And our Jefferies. comes Linda from next with question

quick one. a Just

of seeing net most on the to powder deploy demand? dry broader a at When market. amount question available Just are the towards which lease, the you overall the you sidelines on look industries

at That's -- we have. deals that I we're selection look industries and a in are we bias grocery. back, the Linda. are and the think an we selective just convenience we that one, the stores most that's to industries I it Those interesting and like. able but look If it's Those do

But will what I not a is, cost that across of capital right, yes, but tell of can't I board. so capital, is uniform. answer And that there's you the lot you're

we one cost continues a incredibly almost of have and competitive biggest of than be lower our that that capital to That's advantages everyone.

of ourselves take a So we we favorable market. find are interest focused what ways, we to of are in in position advantage us. areas to very But very the some in seeing on

our concludes closing back this like I'd gentlemen, team it any and for turn the session. ladies remarks. over question-and-answer to management to And

at the all you upcoming meeting you with We forward of for look Thank in June. conference your you. Thank . attendance to NAREIT today. many

you concludes you. presentation. today's call. attending and Thank thank Ladies today's We all gentlemen, conference this for

now lines, a You disconnect have may your and day. wonderful