National Retail Properties (NNN) 1 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to the NNN REIT Inc.

Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

is conference this note being recorded. Please now Steve Horn, will turn the host, your to over Chief conference I Executive Officer. Sir, you may begin.

morning, Call. Good Quarter Ali. and NNN to Thanks, REIT's XXXX Earnings welcome Third

Financial Joining the me Hobi. call Chief on Officer, is Kevin

performance the As to XXXX creating MMN occupancy acquisitions moat produce reflects proprietary our earnings. high continues driven including to in by this results, relationships, release morning's solid press M&M's strong which quality is

capital as are continue to $XXX place. the through acquisition our position pipeline year-to-date a and quarter to and our million. XXXX our a in million are on FFO guidance We announced total for $X.XX volume $XXX of we per further in to range in the Based share. performance the we raised core from of fourth performance, a $X.XX to increase midpoint

Before significant I to like and get the operations company. for day-to-day into I market would conditions, the third events quarter discuss

to of overseeing valuable executive day John management, excited been a Currently, Adamas contributor I'm John Mr. XXXX leasing, has asset the in is he the waking Operations. NNN Portfolio dispositions X. every to welcome confident and we solid end person First, company. development day financing I'm the underwriting, Head the extract right thinking the of functions since the have as value to team the already and for best about for out way up shareholders portfolio. joined

stellar. unsecured million the NNN pretty addition, offering front, fashion, In $XXX of market and completed a XX-year execution timing today's deal are bond markets X.X% on the In the capital with a in coupon. looking traditional we

for strategy. of opportunistic selective terrific of prolonged then XXXX, sheet position while the timely deploying reasonable the time markets. the in today's over but limited, capital to macroeconomic a like any, great NNN's decades raising with access and In continue flow then and execute to the capital entered to remaining a importantly, does execute place and balance importantly, acquisition of as More then solid shape. the NNN being uncertainty executing XXXX a volume deal discipline if capital has discipline and long-steaming to in conditions in maintaining put transaction needs more

our with the NNN's results. we highlights of to volume, credit million the At we months. the of completing first as line execute drawn acquisition present after credit percentage the of on quarter, opportunities free the Coupled $XXX billion the over industry-leading volume quarter's third had right $X.X cash flow are nothing the of ready when themselves. financial end through of Shifting a to X line of

X,XXX deals fungible which cap can't $X invested stress NNN's smaller to term, with still cap of I needle, is the above believe were of move assets. duration cash portfolio regard of freestanding lease the or continue minus, levels -- X.X% closings single-time real Our properties million, XX perform remains XX initial and in at occupancy we rate that investment. belief with we rate, the during $XXX acquisitions, to of high quarter, XX of average new $XX.X million XX%, With plus long-term well an XX.X and XX only our at exceedingly vacant average maintained years properties of under and estate shows best an which XX.X% the risk-adjusted enough smaller the cash

and is approach. that X.X%, properties the higher been The which is a at will in rates and industry period There cap in the down year NNN the but market for signs disciplined continue thoughtful points an in price tightening, the invested in see of the bid Currently, as than showing $XXX resulting is cap and first the do mode, months, we underwriting basis allocation, Exchange overall transaction flow nearly XXX continues has and about lot as discovery progresses, X comparable high-quality XXXX. of million XXX strategy our we continuing. roughly we is XXXX. cash XX%, volume of Stock spread so high a our that New increase rate decades. company's the are companies XXXX interest about long-term creating relationships proven triple The York prudent listed model net trend form, with of NNN one deal. we many lease success stable operated a operating been a rate the model consistent, volume acquisition market It's than landlord-friendly has environment over that few and a it's capital more through emphasizing predictable, on the since by with sale-leaseback seeing which cash with net lease using

clear properties, we have the at we now assets, $X.X a and million $XX reasonable path raised a proceeds reinvested proceeds cap within mission we'll approximately rate vacant X.X [indiscernible] but to X income $XX to vacancies sale always which at rental included a at X XX , are a Year-to-date, continue raised see cap generating million. time During of rate. not nonperforming sold X.X% re-lease XX The the to assets, if of do from quarter, million is of frame. we sell it

the balance in Our of sector. one strongest the is sheet

-- facility mentioned credit no as balance. Our has we have outstanding plenty I earlier, of capacity

over well no numbers have and material and remaining XXXX detail call me let [indiscernible] weighted positioned more guidance to . to our maturity. year have We the that, debt color Kevin until best NNN denatures industry we acquisition fund and mid-XXXX, for the updated guidance. on XX.X turn With is our quarterly

may usual, future may from we I'll that Thanks, will law. cautionary may we company's made. these forward-looking certain statements, changes these be the release discussed differ the under the make after with reflect in forward-looking as and to statements forward-looking statement statements start not significantly securities considered to that to revisions were statements statements federal matters be actual And results Steve. The

could Factors in expectations filings and time are to results risks detail actual the from in from company's to in and morning's greater this that press materially release. SEC differ disclosed the time with cause

quarter press is That or morning's $X.XX of up quarterly results from for per report core release of FFO the XXXX. $X.XX headlines $X.XX year of that, ago X.X% this With share. results Okay. third per over share

year an of X% per increase over months results which X share, First prior results. XXXX were represents $X.XX

$X.XX AFFO for X.X% months first increase represents per the over share, a and X XXXX that results. was

X since page last you we've as deferred rent release XXXX fulfill and of AFFO, deferred growth of core bottom at provide see, the are per results X.X% pro X.X% that number. details pandemic FFO, headline that's excluding of of amounts, from instead share X.X% Page can repayment at XXXX, per million number. the repayments these million provided look press per of rent our instead tenants As then we've a the as and both $X.X their share the month provides XX, forma of X.X% $XX.X to fundamental and disclosed The amounts, that's in share repayments for slowing growth XXXX in and and These adjusted the XXXX XXXX show recurring headline obligations. shows for to in a also performance.

So think of points basis just XX picture AFFO points a this gives higher our for the for fundamental better numbers. basis XXX We higher business. of you versus headline results operating core core, the

our line quarter, But expectations. overall, a with in good

Moving on.

it rate. months of expenses year-end and full the ratio And months our XXXX. and But basis XX free the end. at the rent million $XXX.X which first a dividend for million midpoint and That's XX%. X as after in X all close XX.X% AFFO of expense of dividends. guidance year to months flow points million in would payment revenues the approximately quarter, to the was equates of place first put representing for G&A payout of $XXX And annual base approximately which XX, for down of cash revenues line the resulted X put remains prior year. for Occupancy of item ended was -- million XXXX for all XXXX, free We flow for X.X% X.X% with first for X.X% the September was for of quarter this $XXX quarter XXXX. of at our XXXX. quarter this from million annualized $XX.X [ $XX cash Our ] the leases

the This end to by guidance XXXX end for a $X.XX and $X.XX increasing $X.XX As by Steve we share. FFO versus guidance, core range X% our share. headline to mentioned, in per FFO $X.XX XXXX number. by of the growth increased suggests core increased the to per today, range top to the X.X% was on bottom of $X.XX same a XXXX amount guidance new $X.XX to

from But growth if would exclude growth around again, the eliminated the go deferred if growth be X% in from the around XXXX X.X% we range. FFO are deferred to to repayments then rent repayments. at rent for per X% midpoint both would share core X% Similarly, AFFO the years,

of in high last tailwinds reflects bar as repayments modest growth in per year's deferred well the discussed, guidance growth, results on to Steve the were the rent X.X% supporting the lack previously part slowdown more in range we million. guidance in and key noted helpful for change, scheduled by as assumptions today's created the $XXX now the XXXX of $XXX As the that on as Page the XX. The $XXX XXXX increase as acquisition are notable a volume Page million release our mentioned, press only with XXXX in of X million XXXX share

very while a pressing year-to-date of I've to the early variety little issue We flow, issuance acquisitions coupon year. of we'll this front We free liquidity just funded a growing opted proceeds a cash of a supply In with debt Switching a $XXX and XX-year we that sheet. debt a billion of half of a X.X% from and X.X% we liquidity of of in sources. curve of no leverage quarter maintain of the million to in unsecured as know $XXX debt, with at equity to our couple good $X.X wisdom issuing balance approximately had million [indiscernible] But of and end. debt. stay issued bit over really what to wanted mid-August, with appears in years profile issue disposition said, to be the we yield

a call, low like So feels far, it risk. and real also sheet value there very maintaining our reasonable balance in is

all XX us Our headwind maturity which years, remains the weighted are will help phasing. debt slow refinance coming average over that REITs

couple debt was fixed at X.Xx book coverage outstanding Net XX. fixed rates. XX.X%. X.Xx A our September at Interest to for was coverage third numbers, and of net charge of debt-to-EBITDA quarter. assets gross the is All book unsecured was

capital. of produced or heard disposition of you capital Those well, more company We equity know any in are REIT results requirements results. the for by not to return whether and believe issues minds, valuing leads issuance hanging the per who years. us to flow, not rate time cash and view that one to growth growing heart marketplace our valuing more last leads free or equity capital in the accretion sufficiently adequately, at of is for of have in asset that is few capital deploying accretive We happy per new our frequently us likely equity share that the any that when a it's about fundamental proceeds see to share equity frankly, over also from low discussion suboptimal opinion, attention deploying allocation. the debt is equity

getting now investment are the attention. citing more contrast Unfortunately, recent the and is indigestion here we're every So topic is only the some capital rock producing the of markets world. years glad that in corner of

Over glad from volumes we've market the cash typical help why our that that which like talking what flow look we're been to the few us capital no will world investors better rocky new with relative a free environment. navigate acquisition equity in months, about environment. might our operations last is

details in give will in our on with quarter's connection We more guidance. regard call this XXXX next likely

are this volumes The the think success. in we re-leasing, rates. economic which of is remain to shape, and to cap positioned in per endeavor. closing, our primary of we're elevated acquisition mindful continue renewals, we and to long-term share and in relatively and grow navigate measure capital results, the fundamentals good And multiyear business occupancy, I as good uncertainties market view a So disposition

will So that, the about feel open questions. at up With good we it any moment. where are we to

we conducting question-and-answer will you, be our At Thank session. this sir. time,

question of coming first Dennerlein Josh is Our Instructions] Bank with from [Operator America.

picture big Maybe appreciate just a the time. I start Yes, question. I'll with

dynamic how that the we're about private kind we should Just markets thinking the response rates cap through kind seeing for think the of Like like in forward? public markets. going the in of

market, private the The into Steve. especially them, XX months. in question, the appreciate bump I don't we last Josh,

it haven't We at all. seen

If market rates, up still a a far I result as NN's cap in selective. of picture have billion, seeing selectivity therefore, $X.X the target $X.X cap it's to we're do my for However, trend billion, rates and to more then goes so win down, deals. had more being I as

to have with understand cap our sophisticated are market rates But with pricing that up. who go relationship debt tenants

So we're that seeing a of half to in a I'm first it expecting through year. continue the numbers, the trend quarter. basis you see pickup, the and And XX XX, points

is Second far too out speak of. half to

maybe of that Okay. then, to it for color. started some appreciate curious, a but I mention maybe think I bit. just little later, And Kevin, you just kind

Just for -- cash trying just about can think volumes? then like flow, -- with can think cash layer out good And free base how free of kind that flow in of just pretty I'm without kind we kind you maybe I you kind have acquisitions equity? just of get how of you additional of what rate to think you

Yes. we've be as math talked this guidance, about guidance generally for detail we XXXX. to clear. go more the that And into not out we'll lay and is But

we we, by about as way, think deploying you X.X% cost think million if us. in at It's capital about minds not free a X. to about which As year that flow, our the charge of cash $XXX

call You a that, numbers, more. maybe bit round it, could million $XXX little leverage

million we're potentially, around $XXX then would that capital million year, volumes equation, footprint disposition very acquisitions. kind of a create way. so And proceeds into $XXX in to around of that in selling market that would of a light leverage-neutral so acquisition million take properties $XXX enter And if given

think And more a thoughts we that's that about we'll said, I little so detail quarter. on our like would next the I on generally. to look think, But provide we'll, way it,

is Morgan Kamdem coming question Stanley. next Ron Our from with

of me. a couple quick Just for ones

debt Lupin, trending you and saw I how quarter-over-quarter. bad baked occupancy the can and -- that dip points about Just is into just XX what's guidance? the basis Maybe talk

Yes. read that. wouldn't into I much too

know, folks bankruptcy X leases. dark for we went Pete Bath Beyond that had As us they've as all Bed & filed on the projected

of and XX decline chunk a is that points little rest that's noise. the basis bit a So of

properties broadly we concerns I retailers relates, perpetually we so mean, speaking, because to it of have look, -- leased don't worried. a any As lot more got we're -- we

we're our But not XXX yes, loss terms in well. basis of that thinking but not about and rent of our might points typically how incorporates reserve, things exposure for go guidance

at a to it kind and also XX trim that bankruptcies be At things in of, about like position thinking XX the like it basis of defensive on it, from sense points, feels making weeds things, to assuming feels this more that basis dealing maybe do will which a XXX includes lease consistent we're it normal we're extensions. the those of occupancy bit a with basis rent a so support the sure times, and of -- a year daily it's we variety and will And moment, to call despite be to loss as and future this get rent renewals our from flow. cash of tenant makes points

so that. And do time a to of from little time, bit we'll

rent typical that XX But points. year, loss. kind XXX So all But that a lose of in of into as guidance for of out number. rent points will baked said, we XX fairly our around far that's this assume so loss basis I year, to basis is playing it's us which as

Got And conservative. pretty it. that's

back just the $XXX to this million going quarter. over obviously, So acquisition,

rate all in peers activity think I have basically your slowing environment. about talked this

you $XXX guys I figure forth. should year think is to -- slowing So million, so are you're better I'm million, and just is environment guess that -- next do out, an acquisitions as then potentially being is or and messaging positioned trying trying well down $XXX this where the because million we only and to $XXX seeing about potentially

asking I'm for obviously. guidance not year, So for next

that your get being to you sense are of peers? if and pipeline a building just impacted how Just the trying like guys of

has set some M&A same definitely minus is down. opportunity out slowed there the still think that the activity I

cap robust. Our increasing. are to as and today NNN of about never more been rates far capital being allocating XXXX. more talk pipeline disciplined it there. Kevin It's what was acquisition when as opportunities good ago, it's really months are X it, let that the as has out as opportunities I'll But

New higher it money weeks ago. X door today going is the than was out

thinking year, as detail more it number. give around to And relates next for what Yes. we'll that we're

we essence, just a it's of question, acquisitions. But As in frankly all prior all to of you in the dependent capital think on of kind decent hand, kind if do heard it's amount returns. we have will, I -- on

we're drive grow particularly are the on little that's the of bit achieve we of I we so to can and or and will lot on that can acquisition accretion We're per we asset share volume. mean not -- achieve of a at trying And acquisitions, not bit trying thought of our process the on returns kind that end focused day. growth. a results the

Wolfe Eric next question is coming from Citi. with Our

I guidance. just want on the to clarify

You're like to loss that you say, to. to And you're loss. just if to to XX recoup reinvestment? defining included sort the sort you would XX terms credit us Or versus what's NOI of able being in Just in to that of still of trying credit of the do basis vacant include, sell that understand loss assuming the properties points decide credit XXX bps separately? remind then trending think the that you about after full and not full could

Yes. fair. That's Yes.

property. rent but a vacant bit property is cost that disposition So part worth question basis only of basis the to second are quarter, vacant X. it and a It proceeds your rent, for obviously bucket. little not points that have yes, rent some may in of yes, is And it's sum it it's points. a we XXX little And a our fourth separate would year XXX ago, of in that, quarter's now minds, of of assuming a assume had granted a reinvesting the that's, late, bit a

those no potential for so return time. there's that period a of kind had upside, reinvesting And obviously, of proceeds from

XXX but around included points. And that's our in the yes, not -- thoughts basis so

just you I flow, of future without rising a that rather hold you fund expect rates the kind up the the Obviously, would that helpful. say, cadence consistent the cap acquisitions. are you cap X%. about in That's just over cash issuance, the in move that we've advantage your mean, incremental likely higher to terms seen, thinking guess free just acquisitions being of you acquisitions of given would it. keep if have those rates move able of capital And to would but cash that Got I think then And quarter-to-quarter? mentioned you percentage rates or now

In consistency entirety at of the are of kind like where We our on of quarter-to-quarter. there's XX allocators the in business, to we prudent should the we But passed have an ante. capital feel mid-Xs that have that were look being kind much currently, not months. yes, we of deals

are the cap will on than first in side they higher believe a holding we So the little be rates today. cash we are because quarter

So itself, presents when cap rate now. a the right opportunity it's right game

access You everybody as it there. when my capital go to stated to long management NNN. back time, remarks, we've opening was down, wasn't GFC, in the doing a been that But shut and I this

to higher how investment the capital and rate, the the navigate know cap markets and we proven model. So

It's So rates. long-winded yes, they will rates be of than the saying cap a first cap way today. expect I are quarter in higher

the for X, we us it our point buying to at back our much cap did acquisitions appropriate volumes of how tempering probably is the ago. this when bit in deals. in And half weren't in add -- acquiring them. piece or as clearly just and a want Eric. X year, minds We even the burden rates our returns and capital we dial not a quarter We -- rate next lens X the us, deploying not we lows, for to have time didn't I just that at is for I'll kind because rationale to years that next record Kevin, X were but a minds as of Yes. little were

we don't be kinds of yes, kind -- And when longer yes, we We acquisitions, on term, so be quarter-to-quarter too standing acquisitions? those basis. we it of of think when should or a of kind tempering the we sentiment think Or be so should should appreciate But you're where about things. month-to-month still. we about do much When accelerating going.

those we longer-term there. basis. but -- think I'll a maybe so And it leave about Anyway, on things

next Our question Street. Green coming with is from Allaway Spenser

color Can acquisitions? like look you what on would growth AFFO just some 'XX perhaps provide absent any in

Yes.

markets But to of roughly tapping As far for the of XXXX, neutral. the most off, leverage could guidance and $XXX the call, million likely in we kind beginning call. acquisition going Kevin as given stated we're without as do until hold $XXX being buying capital February million, any the

maybe as economic becoming then you given environment the on think side, just given conversations difficult, or.... the re-tenanting Okay. current about more retenanting And backdrop, just the has just

hear just So prior up that's of I to it's our a we have in This XX% interesting. like expense rent. -- year, mean capital about a of we the I really of stated buy to rate apples-to-apples give year-to-date, we don't lot actually to the But market. numbers Because recapture could tenants. not you rent.

So kind that is as-is rate. of XX% recovery year-to-date recovery an

is great that have rate. we we've But XX% Spencer, had surprising, year. no, recovery such about success a it this Historically,

retending issues any having not we're no, any assets So currently.

then And may. if maybe one just I Okay. more,

[ about bid-speddynamic? of you been due have your to deals deals, ] on ultimately have you've of the at sense on recently the percentage talked in passed Do You looked that what which mispriced. mind a you passed

they've at, be honest you looked as competitors that with We So from well. it we've you. that, at don't looked hear our to whatever track

like movement so closure pulled out thought really Our what became and fast transactions rate But debt then stuff market I as well side selectivity, was as that I they in is were because that seen we the our priced mispriced. deals the the far have that. of and

X, XXX% and the the are are call is a that than find. But to sale-leaseback the little what done. market The it's to lot understand moving a the market, I still XXXX year The value can they think deals leaseback. up. If of sale-leaseback tightening the bid they they market to that's because to and cost tap find the the pricing. deals bit living a the investment-grade the me because faster is close ask get market the most get it mispriced can quicker. back we still investment-grade get loan or sellers moving still But is a sale true of But debt, companies

Our next is with Capital Markets. from question Heffern RBC coming Brad

Kevin, there have go something out the fell of just I as up would someone the as you didn't amount investment Was with ABR moved that expected, cash? of quarter ABR much activity this had. to given

No. sale-leaseback move we us to over and cash. We of funding is didn't that properties the comes of that anybody the where transactions bit for little the from split-funded construction do A we're time.

And so rent typically does not until show up completion. in our ABR

lagging And why so that's that's a bit. little

But our will this will, probably that's our investment once is if quarter, projects you with discussed, we be of typically I that get last XX% is as investment the like which completed. to going of margin, time normalize, missing we that you. for think, But to activity the XX%, to activity, But I piece puzzle, closer XX% be at honest. that's year, think, which activity of

current walk can just then list. watch And the through it. you Got

already, Bed else the Beyonds but Bath you're & on? an anything mentioned You keeping eye

we worry that but of lots you would Three the at list, got of stuff, lots. big of Lots will, we've kind always about of say if Yes. top the stuff. I

little We've that. down you totally like got liquidity X very some a maybe That's our a just are I then exposure. watching COVID on our they've We've because still part it and term. near will, restaurants at of stores home, that watching just rents, got the exposures. there in a yet. fishes all they slower, we're mean, it's feel they're JoAnn. doesn't if exposure it portfolio focused fine to and But fog, but within bigger and few they've the are covering got we're So got but small These

all like that if first of will. month, we hall say, won't that, like relates kind It and year. But is exposure generally the I this loss, doesn't kinds rent of about. are I is assume our and credit our that in rent down not of fine the XXX that think feel the that But I'm tenant the shows you running those in. and basis just we're kind feel as points rent normal Having we which loss and in b, watching came mean, the at up we if dire, of said a those to names asking it year, hit we

suggests think that things I are going okay. So

is Janie. question coming with Stevenson next Rob Our from

good can Steve, during rate pretty mean and Fitness, you're I on the cap bikes sell stock whatever on more a at cap doing similar you the United assets non-top implied sold of below it's Rental, and else and your quarter, the cap rate X% LA you tier rates. is recently. well

So to could you why not and reliably more curious finance mid-sevens on that do scale? acquisition, sell if

through. the part of No, absolutely. exercise That's go we

being We a X,XXX have the luxury of for in business long time, assets approximately.

we phenomenal with improving industry have piece of doing. we no, for we're math. the opportunity. a rate do -- we also But just at share price company. to you're at we agree the that the and portfolio the we is cap is look we what a what the sell dispositions, in at you, of X have view running so lot the of selling We're over compared dispositions, cap the that X% when a If have I diamonds you something it So rate quality defensive years. But portfolio. look cap at the But X.X% the because year

So if equity cap, we like sell at to share price. a X% it's certain a issuing

definitely potentially. could disposition higher it a So in be XXXX

sold, it you the the you've terms the in a of side Okay. Or terms high XXXX of all dispositions over has year-to-date? it on has for in of other place guys transaction concentration been buyers? been And what of

primarily, market, asset. sell Primarily, But the been what we XXXX into we or couple been then owners the it's of of there's a and the call user XXXX. owner users

Beyonds on that The you. retenant they a trying recently? questions for of been you being sold about sort the that Bath And earlier, to what's sale? Okay. have And tenor couple then, Kevin, for X Bed you Are marketed & or of been them? talked

Yes. to No, on X. is plan re-lease try the for of dialogue we've to A X and us it, got active

so actually it's going like reasonably well. And feels that

Bath. Bed foot, were our -- and so a from square there $XX rent I And think, the rents expiring

manageable And so situation. kind a of rent

Yes.

that follow-up. expecting with Just slightly Fed no on the than we're base a better CapEx. little Yes, recapture

Okay.

rather likely So retenanted being to those sold than are vacant. be

Correct.

one offering last XXXXX next for then And get Or on maturity? $XXX you year something closer? to for million the that debt Is capital the is you, incremental prefunding $XXX do the June Kevin. million and as guys you'll look you

guidance. I'll don't I mean we give I market mean trying elusive. any be Yes. be to sufficiently capital

And maturing or take so or does could debt would our money that effectively our off I offering we do regard. pay debt that with view bank line, It which us kind in as line somewhat off fungible. clear allow next bank of to another June

we're so And market opportunistic the just we things it relates months to on we'll try that. see coming as in be capital and how out play activities, to --

will I more we us terms August have to which optionality, managing in is of sheet one that doing in get is we thing the crave balance do another. deal or a But in never something to us gives position say,

XX liquidity. towards And where see dollars In land are so we'll creates meantime, more they're the it the fungible. The holes. headed eventually. and just We'll acquisitions, see all

not demand point that that pricing wanted you in How that and on Is was for upsized to? type materially that to demand if the where that just the deal? paper? you of have was is at time elected -- could Or it at that

good. very was deal that for demand The

So after that we price. we at that announced of $X.X pricing had we where price of orders would billion

more hindsight, we've debt however, maybe X It solid largest the so was ever that is a day, X we'll maybe it oversubscribed. have in transaction could to We execution. have, we was and And Xx should done done. think

up, it the you So will, operated where we've we relative did size past. in to if

was as time. we're really is solid robust point as pleased at in I'm not And -- that yes, it that execution the outcome. anyway, But today it but yes, a really time. with was that that sure at market

coming with is question next Our from Tsai Linda Jefferies.

Can sale market in compares relationships talk volume and about and you of trends the last leaseback quarter done with this what existing how that was percentage quarter? the to

over It's And relatively in as a percentage, sale But Linda, term quarters consistent. as trend is the the the leaseback. quarter. And far of pretty lease that for Hey period, for It's the it's XX-month X this our it -- the XX.X reflected same. same. pretty it's kind that's Steve. much year

Our into but that always relationships at acquisition company. of do kind new grow to out for level. there looking we guys, relationships are the our XX% lean they

expected terms beginning acquisition is what to about where year-over-year, bps quarter, might thinking year? X.X% close have in being cap the up land you then to were rate And that you at the XXX the versus how of this of

as term expecting the midyear, At beginning higher. we're as the increase the in expecting I'm up of starting it far we're year, and what definitely as near to landing I'm well. But

the increase for rate same XX on quarters, then quarter-over-quarter like over And past next bps X run that is the quarter? the

It's probably close. pretty

construction far are As that that out funding asset. the we're new absolutely. the the that money call above going But door, the -- It's split-funded deals building we trend. as have we what

committed So you months X months little because headwind a we money that have ago, a X -- bit of ago.

So it's kind money. little of a older

Bank Thank America. you. next Josh Instructions] with Our [Operator is Dennerlein question coming from of

you mentioning. could This was is that I timing Granite behalf retailers you on? sort any can on curious just fund touch color if that the the that on yields split on and developments bucket? give delivery of And into some of Actually, Daryl fall Josh. just touching

because funded split tenants. we are do only split with relationship Primarily deals funded

little of much So services, automotive compromises of acquisition pretty kind so pictures bit -- primarily. entertainment it the a family our quarterly

Now with as box as retailers. small timing, deal far we

ground, and we be by it's rent. they So XXX it before paying start the delivered time could buy the days

Yes.

out that's next to play on over fund were guide. the about so one as to So way completed maybe a priced is just that think gets switch X project rates is the the was and X cap whatever where last quarter, months will our pricing maybe

have currently questions at time. this further queue in no We

remarks. So Mr. closing any hand back to I it for Horn will

we'll the of many for at and weeks in guess, joining morning, of this I a couple NAREIT. on us Thanks. see Thank good you, call a you Have day.

Thank concludes conference, you at you. This this participation. may we and disconnect you your for today's lines your thank and time,