National Retail Properties (NNN) 2 Nov 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the National Retail Properties Third Quarter 2020 Operating Results Conference Call. All lines have been placed on a listen-only mode and the floor will be opened for your questions and comments following the presentation. At this time, it is my pleasure to turn the floor over to your host for today, Mr. Jay Whitehurst. Sir, the floor is yours.

Jeff. Thanks, welcome Retail and XXXX third the call. earnings to morning, Properties National quarter Good

this challenges is our the many our all I call some want addressing Kevin on pandemic. the of In to me Joining is earnings of effects work official us I'm of Operating of and Steve for call pleased his school the to to Chief and qualified strategy Steve and National first Habicht, midst of the than at one XX let Chief also efforts about the to step appreciation Properties, Retail in to quarter. and Properties National been and comments been continue while our Retail appointed the all involved me more to family, welcome years deep role Steve. recently career all of of has in remotely turn associates his continuing that our their COO as Officer, Horn no aspects express into at has And of with to culture collegiality Also, and there the our third Officer, tireless one my Financial business inspiring architects

enviable than and increased States. United is want to REITs the This companies highlight annual matched quarterly First, other XXXX, I dividend public by two less that our record August, consecutive in stock increases. dividend making we only in common XXst XX of the year

balance we was outstanding rent equally rent for than unresolved during quarter of deferred receivable Our rents. XX% our resulting of X% third in less the rent quarter third and rent. rent. collections due the The approximately positive quarter of between divided X.X% Notably, trend third to at forgave quarter the roughly collections continue of

announced strength October our approximately today continued that rent in indicating also portfolio. our were XX%, collections core We

and financial with management significant disruptions national are a in large, As expertise and environment. scale, the reminder, well-capitalized, weather typically the regional business wherewithal operators, our tenants to

markets majority US, been largely bouncing of pandemic the suburban the anticipated. our Southern see located businesses somewhat quickly the back pleased in than initially by urban has than more We're in Additionally, less we of impacted tenants' many the half our of properties centers. city to had are which

continue will to underwriting active quarter, and identify approach store-level and our a in lows we to to said, our and Although, ramp volume criteria, remain marketplace to in underwrite corporate near challenging. ability cautious portfolios relationship new potential the the to our back growth market in anticipate take in we begin acquisition as underwriting performance cap all-time up and investments may and team at mode That acquisitions we meet rates that are acquisitions the in As returning is remained credit sourcing tenants the his Steve post-COVID future. the

So to you in should thoughtful new and remain our expect prudent us investments.

of the almost of of and/or Our in when further that zero to if million Thus, take our quarter's themselves right strong and remains present economy bank opportunities line occur. end. we're in advantage weather the cash $XXX million balance sheet on credit of with the drawn may as well-positioned they $XXX choppiness

the end rate of the quarter occupancy XX.X%. Our was at

our XX% rate will our metrics the pandemic, demand lease prior of to Our XXX% XX% of by high plus were consistently prior XX% and in we at the remain true world. of impressive believe of in well-located tenant high rent. retail properties hold to for post-pandemic high in demand continued consistently XXXX those approximately minus Both renewal occupancy high or properties to rate our as and evidenced X%, have

all our reiterating by me Let approach of business. close aspects to long-term our

reasonable right from of review to acquired continue will the a diversified low basis leased strategy long-term me lessons portfolio our creating balance With learned at a prices on national long-tenured for leverage of the multi-year real based more own on share and sheet a turn that we is our details results. Kevin tenants rents. a experts. the growth strategy to the staff by over and supported well-located per broadly to industry estate, and consistent believe at refine quarter All for and to we pandemic, Although that, reasonable strong let third call on we regional

Jay. Thanks

results under materially The after make to differ in significantly the the statements actual we'll time third to actual made. release that share these of future headlines differ in risks statements not statements were cause Company's be morning's results forward-looking core the from Federal Factors quarter results to Company's to statements certain statements expectations the from from be and and from FFO SEC press are with matters for to law. usual, the greater may per that report quarterly and As morning's may filings disclosed considered we detail and FFO in revisions release could forward-looking these forward-looking may Securities changes discussed $X.XX of this in release. that, XXXX. this With press time reflect

recognition. the As per these or results release, $XX.X include share million of reclassifying connection tenants receivables cash basis in $X.XX to press noted certain with rent write-off in

were the Additionally, which million in we of $X.X recognized in third quarter, excluded AFFO. deferred calculating rents

XX% third third results collections of of rent third for the with into improve XX% for was collections at consistent month of today, third occupancy collections and revenues quarter are mentioned, and for expense quarter Rent October, and to October. Primary continue quarter reported and as in Jay quarter X.X% and the throughout receivables. first the year. G&A approximately the note we this of rent the the was items of second XX.X% mentioned, quarter Jay end, As quarter

few the to estimation, some had a us share basis the approximately probable rays to to continue number to of of tenants of cash totaling receivables a these This the lease light made third months pay $X.X as we rent substantially are see and of of being through benefit million they receivable the a remaining but XXXX, the payments. to of forward recognized accrued classification for remain or outstanding pay cautious as balances At with going our $XX.X our million all not pleased a write-off their which owe With being relatively front. we of we but collections path per of rent $XX.X as result tenants find us. We a required of totals balances all were tenants work of was quarter. hindsight, approximately will rent $X.XX our on on it quarter, into for the rent million remain X% the the end uncertainty we progress

ongoing this been GAAP payments that usual better. will FFO accounting have would So receivables write-off, Please non-cash results these we without vigor. note the and their write-off, notably pursuing with despite rent be this

XX, the $X.X Now XX sheet, September million These June to at general levels receivable much levels with $X from a is receivables to September XX. over or receivable in balances at rent - XX% have reserve of balance significantly rent million. line our to $X the very declined first, receivables which million $XXX,XXX rent pre-pandemic of

results, at levels arising straight-line from in earnings $X.X reserve GAAP X% slightly we lease of receivables consistent income past is $X.X did XX% $X September straight-line FFO the about accrued non-cash recognized million rent a not XX. rental FFO XX million we done have accrued June with deferral included exclude calculating practice, from had or income This if quarter, amendments. rent this. had but what AFFO general core In rent AFFO. the third and would accrued when We our and per we footnote of Secondly, share rents increased a million been or the nickel

payments rent and a we Chuck-E-Cheese primarily As Tuesday coming XXXX. from tenants our earnest begin bankruptcy, consisting expect reminder, first of base to of in and deferred quarter in of annual X% X.X%, Approximately Ruby rent X.X%. the

real for involved Creditors are to on news - Committee we the so to here confidentiality. We both, due no report on have

no bank have with both ended tenants to close this We facility. our and maturity made year, XXXX. we've in on We not hand line $XXX on did are debt closure reported new list outstanding a million stores cash and property our quarter While at is one our number and down second our time. amounts their this did the on bank of stores, material of their credit million store as $XXX of on companies plans next many investments draw not

we're liquidity position. So very in good

now Page maturity average is rate weighted debt covenant average years the financial release. as remains XX.X with interest press outlined of Our good in compliance weighted X of a X.X%. The shape on

with particular will have million. very to remain assets metrics Leverage normal XXXX. till quarter generally to times is and the retailing predict to EBITDA are in and properties obligations have new might light Only the not look interest economic was uncertainty X,XXX and are coverage sheet net three next encumbered So Consistent in XX; the we better reasonably our good for X.X like a debt things of coverage in on not times shape provided the very get net what was economy how the last at recovery few read the X.X book able we gross in $XX during charge play debt precisely XXXX earnings third times we fixed the capital mortgages of guidance strong, and X.X quarter, XX.X%; by totaling about we out. five years. September was balance

the best we for work we endeavor to succeed opportunity coming XXXX in the As economy, continue through years. a to NNN global the give to challenging

Jay our open for term. As focus that, Jess said, any we with will it the long up remains And questions. on

first Our Instructions] question McConnell at from Katy will come Citi. [Operator

some thought higher thoughts to. their risk are your some your potentially with mentioned, provide what color when about where expectation and around have buy tenant you around do the more updated categories of through And occupancy portfolio? for Could out you the exposure you

- I really think troubled where lines the trade as pain with continues our to big we're - of we'll reside. four the stick

troublesome that would case theaters, dining health which of challenged. of casual say that fitness, would be and family and we still theaters the lines think this, thought been the feels will going like I of out most has benefit the I most feels I six the into say those trade, entertainment. months, with and four

I so the that. And prioritize would way probably that's

of but In that's that more off some dollars to cautious to terms stimulus in be occupancy Federal trillions little dealing the - of maybe at our we all good - the how guess, removed so there and us starts Government, thinking a Reserve, let's - but wear anything could the trade than so. for still very XXXX of the But is and that still that's in when, maybe that think feel know, given see buying occupancy the which we out our as with. minds a see trouble come where patient a be morphines our is forward, where little folks bit normal, we'll more again going and bottom into of doesn't you fall pain XX%-plus will is is Federal from XX%, does particularly will out and of we've been currently it problematic after as

this to Katy, that. just is on add to Jay,

doing look fast and that those stores seems convenience at you back, of food and lines tire auto If other trade well, is back other service, have very stores, as such coming like washes, the lines business been car nicely.

is we're our really So and of dealing of primarily those those trade. that there, some, with focus even lines those of on operators as larger trade - lines in four most are Kevin struggling just said,

there good other right chance think as trade. troubled three is said, more pain Kevin greatest that significant going. those of than in more really all feel how the movie And we even about is lines relatively for of the probably theaters where so, is And we now

a as then about investment-grade And maybe underwriting around thinking strategy increase and your talk you differently, acquisition more we bit again? little exposure could how start just an with are risk you about volumes

think remain guess, very we XX% Right Katy, could October, now back are remain we the - to we I we including is I the looking learn going rent did Company I'm we and I pandemic say all - remain, to XX% - to want comfortable. sure do at I unconvinced, what would third behave for and that say should how our differently. be companies and from definitely collection we quarter trying for

margin Let which quite lease me initial prices with properties very which put think strategy creates to comfortable bumps, a it good and us initial better of and more remain tenants, pursuing rents, better our get lease differently, we non-investment safety. yield, grade often at initial large allows landlord-friendly lower lower we a but of

looking that at now we at this itself we rent proving going strategy be are at right are time to out. something the to somewhat as smart play, but certainly to feel - of we So that collection is is be over like a level, in it initial detail play continues

right. Morgan go Stanley. Malhotra response, We'll ahead. to Please to line we'll with is Rob open. no Vikram next move Janney. All Vikram, your Stevenson go at Hearing

the $XX look move move basically sort you was or before of forward that this you in sort again, multiple at in quite quarter didn't that would to first there how to from going behind a cash when tenants and in it's threshold third the million is likely quarter, characterize quarter, basically Kevin, there there moves? quarter, fourth take meet fall you big in or that, the cash how move back quarters like I much GAAP. hit the for rolling guys, to The could you to them but mean get the the of

say done, here but that like tenants got we've moved I call make basis a but yes, already bunch feel can't we're in cash doesn't it I to so. It's more Yes. sitting the of hard - don't today,

extent So pretty rent collections bubble is But direction and there point this with a moving it the exception everybody doesn't of anybody you lot coming will, much XX% will to at theaters. if the maybe point given the feel right the is Jay's on at tell. again, more really time like

just - and And teed action concerns so hopefully, quarter. elusive like doesn't have the we've it feel we had third been if in - we if answer, I a I but up I taken material - got today, in come, that earlier just the like more would said, bunch sufficiently I've

things difficult the you even Are deferral evictions are this towards at on sort pathways that of guys and levels, agreement. the come of guys keeping non-agreement prohibited, you at to are how conditions market don't of the is that non-payers presumably would pursuing point guys people of the pushing pursuing how and backfill that a evictions you then to And are current given what you non-agreements any environment more sort and sort people characterize one the vacancy? that

Rob, of We this dialog most Jay. is hey, a maintain with constant tenants. our

we National to been were and a appropriate. where entitled as some condition deferral, tenant a to deferral, and it - instances a what rent. instances, entitled that where to we the tenant to tenant, amounted tenant in rent tenant's but we large a where disagreement condition has deferral felt - degree a able on that to the a their was wanted felt resulted Retail pay so don't is but some full rent may those There that to continue wanted Properties instances - really was from And based have there have the position to they the a agreement, of have to been may be between in the some pay on and the business relief

meantime agreement to talking where of pursuing the we tenants are of have consistently. don't we our so that. remedies are in all with And all the an we legal But

eviction eviction, to some to can entitled precise jurisdictions you're there for vacant are where largely those filed and complete rights move don't we extent, pursue up may not properties we the to not have tenants. agreement going isn't it reach particularly but for with we've if may be actions, there great there yet the that. a landlord moment, a be you going entitled to forward, but can generally, is able doing to that, - not an our a - where At we market in ready right the - deal legal not re-tenant want ahead realistic, - where something a point, of instances position but is of in place remedies the some it's to be may instances so And to regardless, do lot be and quickly, be some this this re-tenanting we is to ultimately be being

Our reach goal with tenants. still to an of those is each agreement

And the Okay. currently aren't of how many prohibition? due government to properties XXXX open

of properties kind and but other closely. look our say track that now. Steve right don't Yes. are I'd Rob, open at XX% Steve - anecdotal we information from We I pickup sources, of

is Steve. down. majority of the number, portfolio day, with the probably this Yes, of recently, shut open. is Yes. at developments a the in the fair end but vast Illinois, some is But XX% they about Yes, the

operators, rent a some Rob, paid. area they've large if we it's experience in is with closed, small we get portion where deal got our so their an Remember, our doesn't to the but business, overall that that units it's of ability change -

uncertainty? in of given for liquidity point keeping the you one All for appetite levels million talked didn't really last the net $XXX quarter. basically quarter do anything little ramping this this versus up, at million acquisitions were you $XXX from pandemic, into you is right. the over me a And obviously, the a acquisitions on back You the what's release your coming - guys doing about a then basis anywhere to keep do

seeing that do you just that to million are of mean a I and term the you're quarter thinking up an days would the majority near slowly in there $XXX so, board $XX $XX you and a And in a million your stay million preserve $XX back these cause of in million at there dive quarter the maybe ramp or level. deployment million, at you Is capital? and out that of opportunity liquidity? terms to that about $XXX How the

expect still going that. anything turned pleased tenants level, that we about out now. be, to high to our with It we very and sourcing you have entered about to getting position pleased are some. do Steve, rate to there we're relationship Yes. going color - let on deals little our seeing Rob, how the at albeit, to or we are would the But what in want yet not not But that in to where see businesses re-instituting want our pipeline are making X and give talk a am are or a about right acquisition be that, Steve run is - around, acquisitions, But We're kind the we of thoughtful play we're guidance a but maybe? bit. we little talk more like what new new pipeline be out he's things I a back

deals, source we're team quarter Steve. they the really in third the market the This at be market we deals we has or that two-thirds all we our do. lots Yes. our are M&A relationship seeing The of of that tenants. in development. deals, relationship looking tenants been finding it's starting site acquisition we're and reality NNN mode, Primarily, come and get to single would the a now in quarter, approximately to get are after ANT is, the is lot deals is if growth get the wouldn't through our second but into And from pre-pandemic, what just

but XXXX up, pick during pipeline see deals. historically not to we're starting we're So the

So we're getting into back it.

at RJ James. next go We'll to Raymond Milligan

So of October, talk to or not the that changed? on get that the based trying is rents about whether what in in or based was to XX% on just I'm October? is rent due pre-pandemic collected denominator has

No. Pre-pandemic new adjusted et deferrals, Good originally levels was what due for pre-pandemic not question. cetera.

- And anything in is deferrals, with X% left that's is so unresolved? there it

third that - was that Well, for quarter. the

is the so your X%, unresolved is not, much So, point. yes, not that's there if there

I'm the trying XXX%. to get hold to just back to

are and of October unresolved? percent is So - in deferred the percent what collected if in what pre-pandemic rents of October, XX% is

on just about is third so talk about me just second, in unresolved plus for something - or X% discussion third deferred here X% or going about a there. was So XX%-plus another quarter quarter let

X% considerably drop you And XX% into in quarter. so did the we deferred we quarter, the fourth anticipate in like the so probably October, quarter shouldn't rent the in deferrals fourth going to third off have going

is. So that the might math be where

Okay, was X% bankruptcy? Kevin, you rents that's mentioned helpful. of - were the The in were

Yes.

now that you a that categories X% on maybe cash talk other that's can the X% basis XXX cash? other what's on the But basis, that fall that points - theaters into about

probably be good would That Yes. Theaters. a assumption.

actually it were lower I other restaurant can that service, have would Noticed the talk thought might that. slightly the the be maybe collections you about than limited-service around. way full

just a really not losing that's at related to deferrals with tenants over some we all. thing RJ are any timing - That's that sleep

more So one we had but one a there think primarily reached to the that where more than tenant tenant - was applied we agreement rent more deferral rents. third I quarter maybe

looks over over And was but that number number time. that higher quarter second so being in we're sleep the will that little quarter. for repaid quarter, And a be the for losing the not deferral lower and - the third third over any

to unresolved. X% so currently this back essentially 'XX question points the then looking - you then, you previously cash basis worse that on X% had currently still on occupancy round lost than what's on of basis or 'XX expected unresolved. X% then rents at and basis to XX% as either cash a that guess, fallout, be guys there another X% commented concerning a And tenant on cash I numbers you're basis, expect Katy's of X% think is much XXX how of is, that is that unresolved, a points to I basis XXXX And

not if bucket, together unresolved and can I'm separate to put get sure cash you basis XX%. but Yes. in to add you

I there. clearly some So there's think overlap

and we're arena it ago point. did months I I our of of was relatively guess this solid theater ago of way the it trying our wasn't what dip So exactly say end here the think and it to world. feel XXXX But we're collections six at tone - XXXX, three that we'll feels levels, we so yes, in better feels which And convey seeing the generally. see the expectation might XX.X%, we thought rent it goes. where so below than But months vacancy - but it's what and still it outside is could that

some a don't the I it's that basis to an two, putting for be a prepared made in conservative together. these to and Kevin are orange - it comment made tenants doesn't bit not may we that those pursuing said, mixing that his apple a there on that to those you That RJ, while of in think emphasize prudent mean believe think of collected. want collection extent remarks, - none little an do as Kevin that only. certainly gets leads cash are Yes. I assume I overlap. and it's and I is, very which tenants to also

collect historically, than on we over think we've in better are do where zero - that I we time. a position,

So proper for mind, it's change those but at the accounting get to treatment our get them And my rents - not part all at does collected. resolve ability some it those in moment, our to the of that collected.

Right.

So is the example have Chuck-E-Cheese that cash far basis, thus to business. speaks rejected for - which not on but a not

Yes. of That's a good example that.

to We'll Tsai Jefferies. go at Linda next

this? What drove lines the the were over occupancy? of tenants were dip what drove quarter quarter or trade in that the Who

That the drove point Linda? basis the decline decline - XX

Yes.

I here that. don't bit I'm that kind have bit we from anything or know little we to away I anything not of a - trends - don't in here sitting I a - don't and it's And of that think were think little now front right there's took any think there, just notable I there me.

Okay.

the in and direction scenarios could that model moving do Given sectors, other internally winter COVID that you the progress? right across potentially things undermine the confidence

that's any trying to not kind reasons of of into Linda, a not corner. re-instituting one Yes. ourselves guidance or behind the paint certainly

modeling and relationship are mentioned, plans. they majority are of their directly certainly vast As expansion Steve our into retailers and growth plans acquisitions with that our

disruption why cash the it have watchful very kind to certainly and bank coming what be are a line we of of following full the we in we like future create is $XXX yes, to that on the So the regard, might million of and in of are credit. capacity them but

thinking the and early. the as restart funding acquisitions In I meaning you How this you sorry, are for missed if platform? about

along, all for you of run mean, $XXX will play B, it acquisitions like on terms little and out think A, acquisitions, got XXXX-'XX I bit cash. I was million a before walk we've of nearly probably which said in we us,

and So a totally go-to line unused that's source of then credit. obviously a

more in or acquisitions, if financed be. and be cash things, you you overall not changing So a early little debt may any towards any scheme it profile of the of in would will, But anticipate then innings, of - bit move kind note. the leverage debt our should of of

Massocca to Thalmann. at Next, Ladenburg we'll go John

sir. line open Your is ahead. Please go

So rent RJ's and any of bankrupt and in as like maybe on little some bit of the through of XX building them as today that outstanding maybe as a question, think October not or from understanding and kind about bucket I there we tenant on of process? past go kind receivables current Chapter months

Yes.

And then, what percentage.

So like based like kind the million numbers - flows maybe how rent Chuck-E-Cheese of feel bucket - - much paying on it's but that collection? into I of $X of kind is that that today, is XX%

I would a cash say, a this basis of question, of includes our tenants. - more bankruptcy but and isn't which really bucket, bankrupt

due about from collecting probably cash tenants. We’re the rents basis of the half

today? Ruby Tuesdays kind know this bankrupt maybe what's the the of And to properties year-end you're tenants, roughly at the talk then I the of I around maybe is XXXX, same point. the know percentage a little to reticent you and XX exposure count too at much ABR had some about property but of

of It's base relatively Yes. and unchanged rent. annual about X.X%

Okay. then... And

is Jay. John, this

Ruby we focused Tuesday, low on property. per went very thing property on the per Just about cost deal into and that to add rent - one low

paid Ruby property our property. Tuesday $XXX average million is average than per I - about think for probably is $X.X we rent less and

the but So point, risk the focused low. as by Kevin keeping been - have investment low low and rent were bankruptcy keeping and that keeping none those we that at on - - this the rejected those noted, very in

prepared is low rates acquisitions, think in mentioned perspective you a little remarks of kind on from as the rate relative a what a pretty a cap acquisitions remained you potentially see gating that to have need lastly, factor? to then you basis. would I And ramp about more, maybe that know cap to

we would to more that expansion got XXXX of be necessary investment So activity? a before level

look customers. It's of business rates rate, part rent tenants accretive working don't rates who lease at are of the And were one analysis. factor. with cash by bumps the in escalations, of with adequately relationship of our and to leases. at long-term achieve just in in what is gating we duration for John, not are as the the our we've cap Steve rent the I think the the the been don't amount cap And us with that - that's those risk-return bumps look rent we we cap doing historically, there. a to leases our long-term that but things able initial overall the used But

And so at look returns we at still initial to overall looking what in the yields. cash the is addition

expected lower not say cap would I rates drift essential able we they as our this to we we're find - that get seen tenants been started, to have deals that certainly properties that. a in pipeline that yields we're If have us. drifting relationship So able may we with - bit little our for all businesses. adequate are when anything, for But might identified higher identify

next Instructions] go to Allaway Green Spenser [Operator We will at Street.

a more and And Can made provide on the they What divestments were quarter? bit if rate? guys little cap in color industries the can you share occupied. a you

dispositions saying? The you're

Yes.

Yes.

minor. Very

were properties three terms none of more of defensive number we vacant mean but the on And of sold. $X.X dispositions, was them and it's totaling sold only a I that three It label properties, proceeds. we million would in small category

they that are look to? are any fact the portfolio reduce to mentioned industries the today, guys at dispositions. you you exposure When there were you And defensive looking your

we individual think at more are Spenser long-term of time kind are not holdings. the at all are what core we're more looking which No. than industries that properties just than - looking the

we market, to sites likely it's this the - get is or we've the what attributes of might So that re-leased back. what's what this rent they estate got are real - renew is above toward be for the what are the is likely property tenant and to tied the different more

for now, the we of I an dealing say will theater that larger So at than properties properties market. we for trade. right certainly unlikely we're if more might just there market selling be said, are of sorting sellers lines those the is a and with that acquirer But - into be movie was we moment, would operators. more there theater not,

be pain we've with there So there. expect may while we got some what

likely going down with we'll to work there working We the be be at those are done. the most any road this extent, think point, - has just to tenants we

your to been concern away? And you uptick these and and given that is potential there percent has be if could us the remind or go of then can deal ones related temporary activity that what any

come XXXX our market. of Very acquisitions the few from

extent, And the go - more market. it rates things acquisition and was underwriting so to meet that we cap in move might away criteria it our upward, the to may find that,

As think go, been recent buyers. XXXX our of far has to about XX% as volume disposition our it's dispositions I

So what XX% XXXX folks goes to aren't exchanges. due sell that of we in

go away. we to if a of that So disposition any don't expect to or don't have on impact We part were business that our material business expect really. our

go We'll Stanley. at next Vikram Morgan to Malhotra

Thanks so taking question. the much for

the some signposts a of one of versus peers to I I'm how on the what reconcile of just activity of world you and peers the maybe outlook? get versus ability another you're own reinstating upon their building guidance little trying of bit it that get near set about to being project sense deal is to rate better that your cash just a And a vocal could the I'm to and flow some little trying provided tenants probably causing understand I'm little Maybe just the on a of you've earlier. view differently comments more difference that thing differently to but equation, seeing is consider, trying all Sorry acquisition what of between bit viewing I'm - difference of just opportunity in maybe the and your acquisitions, be some term and world. cap and sort noting your

the a hi. us the business disruption at to as occurred our acquisitions bolstered with all pause. that looking all and and also taking business, aspects and we're store these and view certainly of take customer, are - won't speak sense pause - we that way that but I the took to pandemic this turmoil all the take are to a from a would Vikram, in of it the economic by relationship long-term was I fact of it, say just core our tenants peers made closures to the

to bright-line for beginning to again prudent recently at able continue long-term at are anything and really continue full we of But them we was core wasn't wanted all will marketed So customers acquisition that because deals, something get business. a umbrella taking grow - and in was the you be said, being back felt that other are we core that view will and customers. and we it this but test we running our market were And stayed to back really of the when they thoughtful under that and pursue. give mode. market there be to our can't to just expand to the to Steve we satisfy we support like with want into the as looked I

to dust do wait re-engage think when in the have XXXX-'XX, like worth we right. something took year, to believe back for to clear acquired, million a a if we've I Vikram that. of more and and same $XX that we And ability happened pause the got way in the XXXX, and that's properties we thing firepower aggressive I appropriate. in capital If look

and say of that - and going years have benefit think the back from now we're of years second of a things look or the One that, three in from three have case hindsight. here think we really mattered do should really half we say the more look we the to say, you we with much, much XXXX bought will much back in was and don't about as the that now some

at little just the a prudent we moment. go little So slower it's think to a more

I'm being I think may retooling either of If but have to if how of sort have And comment you call what gone be on from sort you've And footprint And you you're many just comments A, years gone also of that and through, peers view it color just hampered at proof. Internet high-level all retool the you about your just portfolio thinking now future. through more the make had of it the can structurally retooled sort on what helpful. if being even on accelerated maybe how maybe certain three the wondering give this your a somewhat or if seen, some portfolio we've you we've pandemic. sectors any year ago, would may, a the given the happened into

lessons good a a that's will answer now, if - pandemic. we that good are to continue you us not movie to say question. going very look going we that many be learned That's forced probably theaters forward. we And Right acquiring for question, through what this to we would

to how put that uses deals this properties in opening down will and still the we've and next We the what portfolio rents. building like operators years comments, at prices locations the what over the we to large get road. good as leased those industry at all to point, Vikram think got in is of for focus few a But reasonable said with this see on is right strategy reasonable - the I

you trade real be What might want in at winners a pick instead If take you'll be and location reasonable of you to to a able economy lines be downs to in disrupted. may good of estate - rent, the go weather weather ultimately and will is able have what to good winning of have you a long-term perspective, ups locations. that you trying on different the

One Lucas Securities. We'll to Capital Chris next go at

of that lease in fit they've came put for that with the sort that sort a out Kevin, process just place, year modification gone sort guys of... agreements are deferral of were through of of under FASB have quick have of a all sort you on one those rules you sort accommodation any they

- Yes. fit all accommodation. under FASB yes, the They

And acquisition opportunities Should just given lines questions of expect should that you've you've always up sort been of on forward to you of going the as relationships some group of kind consider the the with? be of do then - some new your a sort relationship-driven of very sort of or been to - we it Jay, similar of with sort relates kind working future following side, see to - the to help we consistent organization. that build out

over his want answer to going I'm it to too. that Horn, to Chris, Steve I because turn hear to

is our tenants. main our Chris, of is relationships I the mean maintaining current acquisitions always focus with this the Steve.

the that always we relationships acquired of said, more create hunt we we get and kind a and that or However, - outgrow ourself hope pride our tenants us lot with a business business is to our tenants new and NNN being on company. by is are acquisition guys bigger reoccurring do they reason the of find at

relationships. backfilling So, look-out therefore, new we're always on the

way, see long-winded you're a and come say relationships yes to So going this. of new out

to glad that's his I'm record, answer. the hear for just Chris,

morning. I Jay. Thanks, all That's have this

the back any And or with conference Whitehurst closing no additional to Mr. other I'll turn questions holding for comments.

with a look us thank We Jess. many few at this you we joining and good virtually talking to Have day. for a Thanks morning, you all in of weeks. forward NAREIT

conference. thank gentlemen, will and for participation. Ladies your conclude that today's We you

a disconnect may great and your at You phone time line day. this have