National Retail Properties (NNN) 9 Feb 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the National Retail Properties Fourth Quarter and 2021 Operating Results. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Jay Whitehurst, the President and CEO of National Retail Properties. Sir, the floor is yours.

Thanks, Holly. Good morning, and welcome to the National Retail Properties 2021 Fourth Quarter Earnings Call.

Chief call and is Officer our to our the Officer, Chief and on Horn. be Habicht, Steve Kevin current new me this our morning Financial soon Joining Officer, Executive Chief Operating

also every Properties with colleagues, years future. it’s privilege of my the last like and as to Let Witherspoon Kamau’s the value in Shipt, Health me Much the of CEO I senior and at and qualified our Navy the all for I my our a role into the years. Retail – of career decision the And looking thank been impressive Board’s Properties. we to Board working National was XX-plus National retirement Board the Retail of Properties, who and want lastly, grow is how rest Board XXXX, Habicht in at one as the company I as And add you elevate our recently areas want the of Kevin Steve no ahead to very well XX business develop. U.S. planning to in of for of culture, strategic CEO with and people am appointed an to one look to positioned Steve our especially our April. welcome to the now future. National consumer Steve United will Yum Care, service I with officer and Brands as to pleasure as to of understands background watch of his by well start our Retail company we’re the at Target, positions saying retailing. and aspect Kamau pleased upon and lead Directors better back the our interviewed true end of while there’s forward, his

together. family, what I we’ve prouder not could of be and a We’re built

long of of in in years role that and hands record track know the CEO in April, its the ahead. company Steve is growth possible success best continue the As assumes I the to

solid increase Turning now to XX.X% share announce the pleased over a to of After core per which XXXX. $X.XX, numbers. is XXXX FFO quarter, we’re a

pleased our per FFO also share XXXX to a to share. for of guidance $X.XX per We’re increase $X core range to

business model Our multiyear and consistent deliver are share basis, clearly a to is on and we designed cadence. growth mid-single-digits executed that on per

more performance. Let and turn for color me quarter to now call our the XXXX over fourth Steve on

Good Thank you, Thanks everyone. Jay. joining morning, call. the for

of opportunity express few am I’d April. how the end for to of NNN CEO at I NNN’s metrics, Before key like the discussing grateful the a to be of

confidence and management to having want mentoring, there no team NNN two In will nearly Directors entire thank with chapter. I’m around. to being for encouragement Without decades Jay and said, support also another support question, of Jay thank together. we’ll to year-over-year personally addition, the mission and into miss that deliver as foundation that shareholder our Board deep and the With their I’d continue. the value talented with results associates outstanding confident for NNN, along the to is like create of doubt work moves established we I his Jay of

million acquired Now, cap initial XXXX the XX in for an volume at cash years. bringing XXX let’s NNN’s X.X% performance. acquisition of average an duration with of recent to We and over the million quarter, rate turn $XXX fourth new $XXX XX properties lease properties to

involve leases acquisitions the for our on form. the NNN year most part, new lease For long-term

our superior historical stream highly volume to from of we Consistent XXXX entities. XX is As our we sale-leaseback thirds transactions. cash came other far in past stable, variable net that have more lease which areas growing with on of the mentioned do relationship multiyear from with income the focus flow commercial duration acquisition tenants, the long our over trends, trade two

basis building are of with up on new staying pipeline through relationship on team very current various growth acquisition tenants daily Our and results our our is pace a picking lines focused stable organically the strong currently for train, of that identifying in relationships and M&A, coupled that in XXXX.

on some current to the XX% basis for for with renewals very metrics. the tenant deferred are rent of Turning XX% up right running schedule. which Collection line historical average. and key portfolio from with remains our our The lease is in both quarter. XX to rent occupancy third strong portfolio right year, is about And points

the XX $XX properties we During for also million. quarter, sold

XX that volume, For dollar were Based about disposition which acquisitions of our of one with properties. new into invested the vacant we leases. year, on third a million, total that $XXX generated long-term

material our until our balance sector his our highlights remains sheet at billion Kevin discusses line credit. $XXX I’ll share financial sheet the a in our on our me year-end with saying provide by on in Before of strongest let to no and zero $X.X balance results. that, metrics, Kevin few debt and from comments cash ask maturities in – bank XXXX With the year-end, balance the additional of million

press up time the FFO from fourth with this that’s and could results headlines preceding press that in to filings release report in the per for in results the that of discussed company’s release AFFO reported this share Factors made. Thanks, be per per XXXX, from quarter, prior and be share was included we cautionary core lockdowns securities differ Today, $X.XX of accrued share was quarter rent forward-looking SEC $X.XX would which the out not have cause from per deferred federal affected Steve. $X.X matters and for without actual fourth did risks we statements, AFFO greater $X.XX year’s release. onetime these the may to under in $X.XX, by actual that share. detail start income And stock $X.XX we expectations from quarterly for the of in XXXX. disclosed morning’s and statements The usual future also the the which revenue lower With which $X.XX AFFO to income of $X.X from results adjustments expected. is termination may some so up would G&A with expense quarter of morning’s our and differ laws. revisions settlement fourth as significantly quarter’s to third from materially items in half connected did as better third quarter, reduction rental these certain I’ll are and They company’s that were statement accrual. after changes than considered half come that usual, the that will reflect of Approximately preceding statements to or statements from the we lease may the make forward-looking million, our the coming rent forward-looking way, the particularly quarter’s from produced came $X.XX from of share $X.XX from fourth million very good. results repayment per $X.XX. I about quarter We footnote compensation statements up characterize $X.XX to time other about fourth

year FFO our these XXXX. half XX.X% $X.XX core in the the to results off in seeing Full increased from from levels XXXX, acquisition deferred first results XXXX. of taper As over share rent of per XXXX improved in continue we’re the were peak kicking levels scheduled repayments up

share, per we X% at full over of $X.XX year adjusted line the $X.XX XX.X% Again, represent stripped more $X.XX excluding up XXXX’s and results, a FFO and repayments, we rent in versus per XX.X% deferred increase in XXXX AFFO which share. AFFO in of footnoted item, core deferred which that’s believes line with repayments $X.XX reported per that AFFO, increase. rent showed down, I share XXXX Looking would these those XXXX the AFFO with understand

repayments, the of full AFFO which XX%, that’s for ratio dividend Excluding levels. payout year consistent XXXX fairly our all was with pre-pandemic – deferral

G&A Today, mentioned, December from Steve pre-lockdown rent quarter. That’s rent quarter fourth of as improved tenants, million XX% third which and came all at occupancy slightly XXXX. million, annual the of in approximately $X.X collections quarters. year-end. XX, XX% our XX.X% to the X% in our the to we rent strong quarter As Steve in ended $XXX.X continue fourth expense in cash remain leases very from we approximately of up place collections for kind of Collections for annual with to the at base was reported which mentioned we quarter. rent, previously. of XX% the about and up rent, represent basis fourth levels quarter, is from base the for close had recent that’s

release. charges repayments guidance AFFO scheduled normal to new we our a the reflects FFO XXXX, excluding to what today’s guidance. supporting on are the XX doing Albeit typical in our as executive we today’s $X.XX on fairly Today, range of across guidance they deferral to share. which consider similarly, noted XXXX of share, And well our press $X are to $X.XX $X.XX core increased So to we from are the per and range range levels assumptions Page from $X.XX press XXXX largely a The of our per board. guidance $X.XX front, Page increased X per from unchanged release, last for share quarter’s in slowdown of collection a of back guidance. any on to retirement

for we’ve in a continue rates, is loss of high our current normally X% and levels. typically expect assumption collection to reaching the levels we assumed number of – in which a years, our not We those rent assumed we’ve to what loss guidance continue and rent despite guidance,

activity, we include for long As our million assumptions debt behave $XXX and repay regard any assumption this fairly approximately and over no markets And amounts on no outstanding stock numbers over average with do average In redeemed general X.XX% year coupon. X.XX% fairly to our of cash manner with unsecured facility. Switching in longer billion we we markets outstanding. but the XX-year to intend million credit million usual, our so stock leverage-neutral a full term. preferred capital quarter in of a we $XXX the quiet with fourth shares, million quarter of we Fourth is in $XXX to of coupon, not have outstanding bank ended that We or the preferred activity. terms $X.X of we redeem and raised on preferred round any hand capital X.X% sheet. $XXX the used balance an October, XXXX, was our debt for

shape. remains in So liquidity excellent our

approximately of is And maturity we suspect industry. glad which last very hindsight, benefit debt of the is long a we few now we’re average size with Our among the the XX.X went longest in with weighted in very maturities years, year. months

next maturity mid-XXXX, coupon is all X.X% $XXX is fixed outstanding in a rate. debt of and debt million with Our our

point EBITDA the of stats. was couple X.X at leverage A to for to year-end good in liquidity book preferred XX.X%. So XXXX. times very at this since balance net no charge our as coverage was was Net longer shape and sheet we assets and times fixed times are have of Net year-end, at well debt the positioned debt which Interest plus was the is for is debt X.X fourth gross XXXX. and quarter X.X preferred. same any

miss and we’re in grow will think me it’s but usual, trouble touch very, growth you’ll lot for say, our Thanks to results. keeping know wish current growth been So the a FFO continue XXXX. we stay midpoint. to share I so XXXX the Jay, great and very questions. focus take remains and Thank I about per we in calls core we’ll et for well much. these cetera, thanks suggesting and best. you produced growth as on we’ll I term positioned XXXX working endeavor you. to the conferences, years, as of X% know per our good investor together. of earnings results, to With with that And out that, guidance continue share long into But

take Thank questions. right, you. Holly, All we’ll

question. [Operator is your for Brad then announce Instructions] from Markets]. Your [RBC affiliation coming Capital your Please first question today Heffern post

cost Hey everyone Steve, on Heffern Congratulations the Brad from retirement capital. RBC. role. on A Jay good question the new of and morning on

just on will the rates the So Or a be assume obviously, will more market it’s base? that guide asset preserve that does moved in higher in cap change seen narrow acquisition here. XXXX spreads? any Have you similar spreads

market. Jay. for Steve, about much is very what you’re this you comments. Thank in let the seeing the you Brad, I’ll in cap talk your rate

rates, It acquisitions, a a market. feel more it’s year, Cap they’ve inventory. compressed. mean still we the kind even inventory the in been the supply than I out of compressed second but the of Definitely. if there’s out do of further half result mean doesn’t and I lot There’s deals. there of of like lot choosing capital there’s enough rates cap there a saw

was X.X we it XXXX. bit cap for and the guide guidance, rate, we’re cap get our the a as far As on don’t rate but compressed for seeing little XXXX,

Kevin. maybe Okay. And Got it. for

covered increase you have new the guide lower delinquency some been seems by at guide, reduced Looking too. like know entirely the would the G&A, it also I but the

there in in is they up? So there an factor guide offsetting resulting ended that’s where negative

No, not really.

think in terms G&A some what’s improvement as I improvement if most loss as from you’re target of some guidance in will the that on reduced collections. as driving of assumption, rent well you

two are items it. so those And bulk the of

thrown capital – give assumptions markets. we be markets it course, we is accessing the – opportunistic to our our guidance in mix then we but it’s in it’s Of because those activity, as to try in projections, which capital relates don’t don’t

held really to to want don’t assumption we be So, metrics. that our in

in piece other that be that’s a impacting might precisely. so model that And the guidance bit can’t folks the

you. Thank Okay.

Please affiliation your from is question Advisors]. announce next Your question. your Street Allaway post [Green then Spenser coming

so terms at XXXX is think more your just in comfortable terms your – Thanks how expectations you question. talk of Green Street. equity acquisitions, for with be of just currently. maybe with cost more can One, split of How then on? specifically, about in this you of Hi, just about between thinking in taking my leverage funding I’m point? comfortable your where you’d terms just debt? debt do taking And your you much are capital Kevin, weighted

Yes.

So investors we’re and our guess, the I we’re – we leverage profile to well, we first and agencies think rating think as question, generally. very the is with are are comfortable answer today,

that’s think I much. don’t to change going So,

it’s this point million At about acquisitions, $XXX cash year-end, bank. XXXX funding the interesting. at in to got relates it we’ve As of

free nothing needs of produce million and from raised will flow we’ll company – So cash produce guided $XXX operations, The be to all about of just we’ve disposition. payment then $XXX of there. dividends, after million about to

million. cash million dispositions $XXX-plus of million $XXX $XXX of million operating $XXX and is So of cash, flow about

versus million XXXX acquisition. for And of acquisitions, about guide our so we’re pretty $XXX – already funded of well

the in know I Thank on you. cap in that the quarter of a activity, And Okay. of activity. maybe rate acquisition chasing industry terms attributed of terms terms anything slowdown delaying but you deals, point in are all? just can then to slowdown? also in front you M&A lot of capital be slowing themes fourth mentioned kind can broader of else And A to the at tenants

in didn’t quarter. as activity there fourth the is find as Spenser, Steve. it’s the Hey, No, out far – we investments right the

that are bought we XXXX. with in comfortable We $XXX million the

As adding and/or relationship the I getting stated, tenants are our in back M&A. market, development new stores through

the and So, market, seeing services, in still of the the in line we’re a particular, M&A Wash sector. trade still specifically Car robust automotive QSR in

Great. you. Thank

your question [Baird]. then next from coming question. affiliation is announce Golladay Please Your Wes post your

World World? that the you morning. some Camping the Hey, rate the Can Baird. good higher? operating see bit that the and was It’s talk a Golladay cap in dispositions Wes little drove about quarter? I you from carried what were Camping those disclosure And

Steve. it’s Wes, Hey,

was rate the We when approach do we’re disposition. far belt on looking cap dispositions right. The exactly at higher year. You’re this

Camping offers some those rent fundings. out to management that we’re did for price some that amount then believe for it. a dark other were property to a portfolio some paying do we somebody Camping regard management. fair and And to high, World, us sell extremely with assets World. development going with future is worked and And we portfolio when And opportunistic of we do deal we a We’re have

to fourth and activity heard a then industry to was some volume, of this year. gave. the it Got the fourth of Did the build $XXX at about of was, push some quarter out? that guess, from a it the there’s you. you – just lot in just million, out maybe quarter we I’m I that but trying answer where deal And what first first looking quarter have the you spilled you last happen into it maybe was of quarter

We bit define different little the market than our peers. a

acquisitions that There leasebacks, retail. there, directly but out see that’s can because Also different years XX sale of in directly I deal have had peers. XX all agree to on deals deals. of amount I market of portfolios, industrial that term nine little a term significant and years to was variety lease peers recall, focused I burns. several which on If do industries. our portfolios They out find wider And had than aren’t just really a don’t the to with with a industrial. we and there those we tenants. term the Our volume on can’t speak side, north is existing average our try lease bit doing we XXXX our the

maybe And last enough. a fair one. Well, Yes.

it missed have guess, assumptions wasn’t might the, the guidance maybe bad currently? are said, in explicitly I I what or think I but it debt

Yes.

We’re just – Kevin, basis assume that that put which and in to an we normally reach in But loss year, I look fact get level, to our normally, may said, typical kind something that’s assume, that that’s rent taking We said, we hey, a points, issue. of projections the the Wes. getting level. reasonable to somewhere numbers. guidance that usually XXX I internal would we but it’s prudent back is loss think we number have loss X% don’t don’t what’s What like like despite

lot both to Jay And Thanks congratulations guys. and Steve. it. Got a

Thanks.

Wes. Thanks,

post question is from [Citigroup]. Your McConnell coming then next your Please Katie your announce question. affiliation

it’s Yes, with Katie. here Michael Bilerman

both you. We’re with Maybe, Citi. starting from Stephen, just

your The trades. stock the two the wants maybe you narrow an which sort discount least trades your for, at almost what enter is of valuation and out your of what a obviously or weaker I acquisition at obviously what and been strategy? most create obviously, to peers. at just side. XX is internal acquire with discount seat, consensus guess, And CEO – Board You’ve had the to the the is communicated when from end net light, given the I you go to very the as on to Obviously, to company, three you have cost as lease years. company think, a NAV in Board peers And the It key your to And affects is that points of multiple capital, growth currently a premium. with that. a lower than strategy accretion. trades fact it

going look is to And guess Board do it? what address you when discount? to that at you what you becoming think share I for a do you? So, with are does the And reason the CEO, that

Right.

that Board say, I my be I otherwise the firmly mid-single I’d don’t as this I strategy is, think strategy, think low digits. far that digits. in believe in can single one But shares to not believe the I change FFO in I growth, the year-over-year thing position. – going as I’m

were as that Now one long right view far like trough we a the if we But thing in and in term, of think we growth deliver now, XXXX, we’ll just yes, equity market we’re little the back back. price, as premium bit quarter-after-quarter, think I XXXX. a I our get

But set probably peer very different growth little overall a than is that not lighter. the a is bit mid-single-digit actually

at your get trade do the would premium or I think why you line guess, going a be stock to to you So, peers? there? then even with are what in things

or growth Is X% X% We rate, can to Or Yes. debate. growth. it X% X% right?

little of I is bit on background my acquisitions. touched a you think kind

bit not but So, and much you the do acquisition believe the little I to a up more acquisition by see exceedingly I might growth, pick or expect higher.

board where But years, it. somewhere stand, guess maybe this imagine where the that’s to a right stock the Or should a in price. you with low are be I if maybe coming maybe company – the be strategy you few where wants to reengage done. that the or strategy? can’t happy see with the investors to if other you I there alternatives Is not is want

how Yes. manage company. our run. not over increase I long long it nobody the management going the see expectation, wants the I expect agree, the to over I’m or and to mean And the I term, that. It’s that’s Board, to

I to in strategy being lot as the kind think Now me to meeting as going of to in you’re and out the investors, the a far public the of more seat, investor absolutely, relations new express term near see with M&A.

for This just there. follow-up is quick Hi Katie, here. a

thinking out just So pipeline in $XXX came the since for what the XQ the of should looks how volume million guidance range, the can deal at you end year? be we like that about timing And active today? discuss of you laid lower

Hey Katie, Steve. it’s

can As we’ve And visibility as zero. quarter, first to But I an – our far three estate just million this we’re far timing, the is my the that M&A guided is want months you $XXX the real hitting the you for as as all-time year remind numbers. for know, guidance. to world, part, high I as in that most of

our guys on based talking I our the I pipeline here that acquisition stated out just what the pipeline, us. telling historical to relationships, about I as XXXX and opening the there feel We’re is But levels, in our are sit very in know market comments, good today. what I as

Hi also we Kevin. volume. for holds assume weighted it bit normally And of back-end Katie, a XXXX, it’s little acquisition typically,

XX% second round what and included XX% So we like well. assumed, half, have as for XXXX first is guidance in numbers what generally got our half kind that’s something we’ve of

Okay, thanks.

for affiliation. [Morgan Your next Kamdem Stanley]. announce your Please today your Then post coming question from Ronald question. is

topics on of transition, just before. from One congratulations and of two is Stanley. Ron touched quick to that follow-ups it’s ones, sort both been obviously, Hey, on have the you. Morgan Hey just

thinking the but on just operationally going be hit so You contemplated like be and there that anything is how reporting being the lines about is changes we of should sort or business any that’s operating forth? strategy, to that,

Acquisition Officer, internal COO from really retirement were Paul Bayer’s thanks XXXX, the the company. The for the – to the I I because congratulations, Chief mid-XXXX change, hey, Ron. our I upon actually told became transition. if associates as was – during far As

to within years. last Yes, going is valuation lot far the the and going to The I’m So, as the you’re strategy a FFO assumed as strategy. as there’s be couple outside, the organization multiyear my far the going I’ve growth difference. to remain and some far as not responsibilities going filter same a as kind of over as to internal from responsibility of – notice of operationally

question And wanted cap hit maybe I then little differently. compression the a bit it. Got rate to of sort

think seen triple of PE we’ve coming I nets. the announcement all sort into

being think, guys granular, the being I being talked a having competitive about big historically, focused, advantage. have relationships

maybe six three Just what over last months? capital do more to the like the sort look on continues And you can come going competition what to more you forward expect private as and – capital into space? comment of

over felt the we’ve six capital coming into on additional last reflected months, space just So, the it the the without question, that’s and rates. cap

years money the space go market. market. a to challenge, place in said, our the takes by However, the a do. to It’s quarter little additional on just long-term in bit XX-year And we it touched it of establish and the to to mandate volume in general our it’s easy that’s But relationships It’s coming into franchisees the open isn’t earlier or the new lease doing XXXX large leases, difficult our company Bells. that do. is in do, yet. tough, our open in find an about coming market. money That’s hitting of QSR to that being we into what the And is a peers already really the go the space effect Taco in the industry fourth that’s easy

guys. Thanks me. for it That’s Great.

Your [BoA]. next question post affiliation. Dennerlein Joshua Please coming Then announce your your is from question.

you retirement a and plan hope have BoA’s nice Jay, the retirement. party ahead. Hey, Yes. affiliation. on I vacation congrats

on today? to maybe your What’s list. touch Just it tenant on watch base wanted I

trade been it’s of that and we – things we them. XXXX off mattering in recent to quarters are Kevin. are no high. Really concerns slow we that, those about said of are from watching hey it Yes, list, change we where Having that lines has keep the in collections very four take so back our as the very had our

no worried have communicating we’re that market we’re that you tenants or about. to the We

And changing very in I dining the We creditworthiness we our comfortable despite the really exposure with much feel on and list. the tenant of moment, – expectations at just our say, casual of of list so not and collection kind tenants. that that kind like with,

shape good pretty in we’re regard. So, that in

Maybe for tenant kind versus, list change X% related if Kevin. hasn’t you now If you’re moved? guidance correctly, XXXX I think watch follow-up. heard Thanks, previously. expense What that debt I and really assuming Great. X.X% one of the think, drove I bad

Yes, it’s performance. really just collection continued solid

how So said – may to watchlist. different we think maybe about so and – tenant I like credit maybe we and Kevin just as be

to compelling tend go reason companies take on a them stay until on off. have and so And we to

For watch and example, on Barnes are our with, for than half the & dozen a been stores with stores and decade Noble, like and we who very love They’ve them. locations I have happy the a list think more we a probably. credit

you of Amazon to was as retailer started If designed a and out book recall, put them business.

I’m but still not They’ve month long about next coming either. to rent, there. they they’re rent them pay survive in hanging list, well. now from have, I and done wish So worried the great, as as they but continue on they’re

be a on might that we or and it off list. think how distinction I philosophy companies about So, a put

That’s it our that so to trying guidance not despite much. I’m And said, directly. hasn’t communicate like I really what changed drives

time. may and They very rent pay perform stay In of period for usual. the as companies well to continue list fact, a that on

The you quick just XQ, you’re I it. – Got that One impact. share one. seeing that in term now didn’t fees per in hear this

Yes. million, rent termination surprising call we up. – together about It’s what together. funds give somewhat example. show was onetime lump you lease of we actually one and I’ll settlement that It $X.X a and all that was kind

kind fourth in little quarter a from and creditors. $X.X settlement, don’t line it might Mountain. And Gander up of much in that be, Out the came you just blue various bankruptcy, that to know out over million, precisely or $XXX,XXX So was court go really funds shows how as thing I the it’s of of the unsecured it just it that’s when item. so – that

thanks Okay, everyone.

is today your announce Then affiliation. coming for John your post question from next Please question. Thalmann]. [Ladenburg Your Instructions] [Operator Massocca

Ladenburg am Thalmann. I with

off, First Steve congratulations to and Jay, both you. of

Thanks, John.

if In results? versus are that is other the any, stock or kind are of results And XXXX to your of any down the in that comp by XQ the that reduction reduction? an that, versus G&A guidance factors terms XQ How driving the kind transition? change of driven updated CEO guidance was what being outlook? the Is of much maybe

say, or our levels comp assumptions. I’d of on things I’d thing, assumptions benefit the will the is to sure. other some too, I of part that’s just XXXX where in yes, are, and item versus that think those say, in defining equation broadly be. G&A Those And for two line incentive our XXXX creating the

that if XXXX, – in I is XXXX mean out to retirement probably up, a mean. obviously, we I well, as your in as look anything stock structural not price maybe there CEO in there going goes hopefully kind have of

So else those maybe could XXXX is increase that kind of in you numbers? there will, there anything keep if versus that efficiencies,

Yes.

think it in that’s from over over years been XXXX, to I the X.X% about us of think seen years improve has was G&A was time, in our about able that Last I efficiency what you’ve So, earlier, revenues. Five regard. year, X.X%.

a So, to revenues. about for able as our X.X% we’ve operating of guidance suggests think been G&A continue and percentage as efficiencies, I press XXXX to

than you’ll the higher over efficiency are so continue if that. even lower revenues to And that growing G&A time, faster move see us creep may

been? kind a guess obviously, reported same-store of supplemental, I number, by heavily Okay. deferral normalized growth, could those And number would deferrals. you then repayments have impacted the with that terms it the you of what have more out growth mean, was same-store in I of of number kind if back

by question, as Yes, in deferrals losses is and XXXX because on went we’re you that up the and glad fair XXXX. influenced heavily it and brought

– of just it’s same-store noisy so a little for numbers some sure. just are the And

long-term over line. today investors think a bottom top-line rent to to net and that so we’re all X.X% the that’s true should that And increase drops communicated because consistently the lease what remains you triple we’ve is about and

creates opportunity it so And growth us. some internal for

No, of as I I terms XX then? mean, point of of we I guess, then, basis basically net is – of kind assuming you’re look in credit a loss, what out that net mean

growth, X.X% Yes. assumption. top-line Yes, that’s fair yes. a Yes,

kind then lost of If you’re guidance, be a than assume reasonable you rent, more which XX yes growth, X% of assumption in what’s points our might kind of basis yes, a about sir. all-in

historical in the bit past to I as was lower back a of rent question, basis? going maybe more repayment that little non of it about of elevated line was last the kind think original normalized And with on of mean Or historical kind performance year, just we I outlook? kind guess a that

not sure, I’ve had… I’m

out pulled that own same-store. rent basis of the we then basis X.X point, you kind if X.X John, deferred points. Yes,

correct. Yes,

Yes, was Jay. that the question,

next Thank you. do the I’m to That’s quarter. I going word, miss

earn to John. starting already, you. my I’m consulting Thank fee

much. don’t all know. That’s very Thank I questions. my you

[Capital coming question next One your Please your from affiliation. Your Then Lucas Securities]. post announce is Chris question.

Securities. One Capital

had quick the of just congratulations of few First off, seen we’ve Kevin, questions. move couple a I I in rates follow-up you. Steve, Jay, last guess, to both weeks.

sort you as And back Just curious is sense? what today? like a maybe what you’re kind have October, to in look to you what in of terms debt you go money XX-year priced of cost XX-year that the the today? back seeing would cost Do of

Yes, Yes. fair point.

of debt long-term why as I issued last were a year. comments, lot So mentioned my glad we in we

Today, coupon. that I X% a was would XX-year issuance the think if in last we did Our be mid-threes. that,

a high-twos, not maybe debt ago, too us points just than the a then bit not And it. probably many way I the more solid where issued in too in So about long higher is rates we XX-year for think months basis little today XX, ago.

– think, well XXXX definitely in we we’re funded Good I so question earlier, And acquisitions. for it’s another more news expensive. mentioned, yes, is, are like I

don’t So, to anything on need we year. that front this really do

be either some about Okay. And role then, backfilled that, internally is, of is at I One point Steve, externally? guess, a thinking questions. your couple will or just

Yes. My no. I’ll keep the role, of responsibilities. whole some

the all start over be externally. All or evaluated. things and I We’re internally time, it and some evaluating of could I’ll those then currently will shedding responsibilities, be responsibilities have,

Okay.

talked the then in rate – of terms and cap environment, you mean, was how I the just it fourth about quarter. So competitive in

Just seen – rates part wondering about wonder, thinking your do your to of as to trying you XXXX, or any sort in definitely rate rates move, given sort understand trying to But whatever. sort expect how it they I of expectations for where for equation cap XXXX? expect sort just relates to knows of do of move rates reaction long-term higher soon who – as the or cap higher of we’ve you

up six been cap I’m of to lot expectation nine the rate little capital stay days that is, for touch. a term, change the rate overall the a sustained or deals XX in takes rates months, new There’s months, bit XXXX, market. a rate clear any cap our some. Until get our market. and are there’s not we portfolio we’ve expecting increase. of that In a the Again, got but Yes, priced it be Yes. truth near will in compressed acquire of is increase

stay bit So, rates little the you’re a seeing cap lower.

for my business like then your of to question some And environment areas, restaurants. Okay. of core sort last relates the

seen You’ve IPOs. some

those transaction? impact does I’m I sort have I guess landscape your businesses Or more public that on as how with that on acceptance markets the as kinds of of your of to the opportunity curious restaurant is that today, the just think curious help them? the nonissue? or it’s with changing the to opportunity way. the a kind front might just

look more sector casual fundamentals seeing the dining last we’re been the now estate a ability activity, only casual equity see low robust the we risk, tenant’s private mean we don’t months, the is and rent we yes, we XX to rent, to If more a when When into pay going reduce there. we’re enough, not at few deal. has we’re are because But going pretty see specifically. increase how opportunities to cap the the dining some lot I starting but acquisitions, QSR to the at for restaurant that look rate. groups starting the credit, at do we’re we we’re looking rent. – That’s real

you. Appreciated this great. morning. Okay, Thank

from Then question Tsai is question. Linda Your your your Please coming next announce [Jefferies]. post affiliation.

Jefferies. from I’m Hi,

and at adding as you to Steve, congrats my point? add portfolio well me to Let any the would Jay nonretail Steve. consider

board every do, other but my in Hey, over and expand of meeting, we’re feed circle head think could the we’re years yes, class, we real looking But every future at can back we we that retail quarter, our of up we experts estate. kind and and we always asset into the every just is the wake day in stuff continuously. retail. evaluate some option currently, we that when always talk is our strategy evaluate strategy Jay

of in about terms Thanks. outlook Fitness and of LA AMC, how feeling And these the are then concepts? you

they’re very at particular, they Fitness, – good your because in As industry open, theater revenue. proven of they’ve far you and the a model The comfortable. per says can about because news I but low comfortable so have is, that’s which XXX% their as rebounded the averaged nicely, our meaning portfolio much – $XX.X that revenue, They’ve subscription has money, short very sites. on LA asset, those portfolio, our raised think, charge you’re AMC, and means term, is back. if theater government we’re extremely our we rent million the

once able three recent a be lot took the at to sustain theater rebound the back industry. operationally, So step they’ll We a they opposed were for years years in where rent in industry. of million the the $XX done to deals theater in probably

comfortable we’re holdings. theater our very So, with

And then Thanks. just final question. a

rate terms cap think forecasting, to how $XXX X.X%? dispositions the you to be XXXX, boxes And you’re compared mix million occupied? then On of blended of how million do the would might $XX in the versus vacant

XXXX. pay dispositions to where in a cap view are vacant, at opportunistic, is cap it. will somebody ridiculously the portfolio we’re to management own blended I we get risk is rent. in third, because feel to rate the be likely willing repeat going ahead curve And future a the is low lower of going management that be asset most XXXX of meaning looking a we than expect the one-third how to active we’re to kind be But rate one-third of that portfolio trying to

divest So we’ll it.

you. Thank

turn to any queue. back questions no for floor further I the in over Jay comments. to are closing There would now like

folks congratulations. and the Holly, you their offer to thank who Thanks, all

and behalf on sheet closing, very want tremendous is do speaking that. In Properties has So that much leadership a great people the right of investments the capacity, Steve From stable Steve, to enhancements as to a right that future. put relationships Kevin that in every management of to discussed, emphasize about I balance the discussed, us aspect address position both generate that fund tenant of to, properties Retail appreciate in and talked we’ve high-quality the National that as to new income seats. board and

today. For term, to the success. for And thank poised for again best. us is company All joining I this all and future growth the want you long

conference Thank you. today’s Ladies and gentlemen, this does call. conclude

you at lines phone time, wonderful your day. disconnect this may have and You a Thank your participation. for