Agree Realty (ADC) 3 Aug 222022 Q2 Earnings call transcript

Good morning, and welcome to the Agree Realty Second Quarter 2022 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I will now like to turn the conference over to Reuben Treatman, Director of Corporate Finance. Reuben. ahead, go Please

morning, Realty's thank call. second Good us for for Agree quarter everyone, you. you and joining Thank XXXX earnings

turning will quarter, under to our over Please considered note through the forward-looking Peter this language. statements Before discuss call, that during to be we the Joey cautionary Law. results certain me Federal let and the Securities that first make run for call may

number any may filings, results the significantly reasons. forward-looking earnings statements yesterday's differ forward-looking a annual including report SEC in actual Our on for matters release for risks various statements. Form underlying from of and of latest our our see Please XX-K discussed and discussion uncertainties a our

operations and FFO, or the non-GAAP found In directly from to earnings GAAP operations, debt or net financial funds turn most comparable addition, Reconciliations over can I'll filings. discuss funds measures core measures financial we adjusted of AFFO, non-GAAP Joey. now call recurring measures, to release, SEC be EBITDA. including the website these and our to from in core

very occupancy to our sheet. Thank three I'm capital growth all our near year, deploying pleased to solidifying Reuben. report significant across continued that external maintaining platforms, strong and you, further start full we the balance

material investors results Both initiative. our notable for these during continued While growing efficiencies organization. are our quarter our readily ARC for the drive ADC state-of-the-art significant ERP made to most progress enhancements what see, strides apparent and achievements our and on was will our implementation

acquisition weighted properties quarter including years. acquired Off-Price, during growth sectors, properties The average the operating in Dollar three distinct invested a than in sectors. properties volume quarter, properties second million tenants and Clubs, best-in-class to Service, The platforms. Improvement, Convenience average originated platform, are across Warehouse acquired of XX General of acquisition external of lease a we XX X.X% million. more Home Merchandise, the XX second auto XX and and During parts of representing had $XXX these the Tire operators leased XXX through weighted Auto our cap XX $XXX rate Store our Stores, in term approximately

raised during Our almost that This on year, and of retailers. investment derived the continued acquired broad rent the retailers the best-in-class growth. months ramp quarter of our invested through fortified our our with our properties partners. positioned first platform. base six equity spanning activities the a states annualized growth and continued development demonstrate avenues, a Nearly retail investment-grade supported select acquisitions, first metrics the diversified sale $XXX lease sheet the with leasebacks, and retail opportunities diversified focus ranging and leading omnichannel risk-adjusted portfolios, retail of is from superior from and half toolkit multiple balance of us platform. spectrum opportunities $XXX year PCS of acquisition record XX originated These continues during sectors. produce million to $XXX one-off across from long-term leading relationships we've by million for investment were Through our X/X net XXX million activities Approximately, the XX of

and As top of our Auto of June Tire the portfolio. XX, representing Service sector, X.X% was

high-quality U.S. XX foot years. and across the scored highly rent find over quite low combined of national in model. the per the The space our opportunities and record We cars a view age average continue operators square hit compelling to favorably. sector road of This this with very on

year. billion. range acquisition $X.X for acquisition billion increasing of surpassing Given to the last a our of robust company, volume pipeline, record low $X.X previous acquisition would to guidance approximately XXXX we end $X.X range volume are and The the our billion this year-to-date from our our $X.X $X.X to range record billion billion represent acquired of

equity of able spreads cost to invest and flow cash improved capital, accretion. even our in provide we are additional greater Given

many to of us capital, while with sheet exciting balance have market. cost superior fortress positions our combined Our levered opportunities the competitors pursue exited

We leveraging strong are on are our amongst and owners intent positioning. developers seeing and distress

acquisition remain we again once macro dynamic our of are our cognizant raising to and environment disciplined the guidance, While strategy. will

Moving to and rising have pressures our Capital rate Partner Solutions uncover timely on to deliver on platforms, uniquely Development and interest compelling projects Cap expansion, to a growing inflationary rates us team opportunities with budget. situated our and continues pipeline. construction

additional completed [indiscernible], committed year. record in completed on development Georgia, PCS capital. We either Collisions continued Sunbelt During development representing we the XX between million as In Gerber of the development construction expectation quarter, additional construction I three call, the projects. we total, half and in million well $XXX first to projects or year, On million as this during commence Gerber $XX projects, $XX under commenced our our Rentals. the five platforms in XX including the another quarter's and mentioned a through PCS last of of had

activity that our significant pipeline, we've range in Given year. $XXX million and our between million increased commence to expect this year-to-date now and growing $XX

fitness the our dispositions. cap for million of with for to $XX five proceeds a with Through during Houston, the the health Fitness X%. first total includes proceeds weighted in of reduced gross Moving months X%. rate properties exposure. gross We previously nearly quarter of the four of weighted cap Texas, approximately average sold year, further a we This properties the which activity on million six and average announced sale rate of LA sold almost $XX of approximately

gross Notable Best Chick-fil-A Nashville, New a at On front, we a included extensions El Panera a leases feet area. in extensions Bread executed options or in Ohio; approximately and Paso, on River, Rocky new Texas; Buy the leasing or in leases, Hampshire. new of square options XXX,XXX leasable

team's end, at just a As base our efforts X.X% XXXX rents. result asset management maturities of lease stood of our quarter annualized at

ground portfolio leases properties base XXX quarter included representing it end, across at annualized At all over States of fully nearly occupied United Continental total XX% remains Our and encompassed XX XX.X%. rents. X,XXX

representing at a investment-grade XXX basis Our stood increase of points. stack XX%, two-year exposure nearly

second investor-preferred for to our The you call Before Section up climate-related efforts their the our encourage within the With our and to then Investors that, it report financial handing Steering I'll to Peter, includes all entire results, to website. we on of want discuss I access disclosure which frameworks. the read over can the enhanced ESG to over We report. and can report, annual Committee you of ESG incorporation open and to commend our for Peter questions. our hand call Peter

year-over-year a Starting share increased the second core year-over-year $X.XX. increase. for quarter share, $X.XX Thank earnings, for to per you, Joey. per with second quarter representing XX.X% X.X% AFFO FFO was the

stock offerings. As to stock periods than within month-over-month and these each dividend higher X.X% a in amount from our and our In May, diluted included increased April, representing monthly to trades annualized aggregate July. our impact related count $X.XXX The of share monthly deal amount share, close of June an a annualized increase. cash per to the per represents declared XXXX. $X.XX forward share dividend subsequently We share we equity for comparable second per settlement, X.X% quarter. reminder, the dividend monthly the is the treasury and if offerings dividend was of outstanding $X.XXX cash dilutive The of $X.XX a above in price prior when ABC dividend to

and were FFO per quarter for conservative ratios per second both XX% AFFO core a of share payout Our share. the

of our supported excluding and to in or of and growth. $X.X quarter. the earnings noncash well-covered administrative X.X% Our totaled below was above total X.X% G&A growing continues the and lease be expenses strong dividend million by amortization market intangibles. consistently second expense revenue General

Company, anticipation points total While scale, decreasing we revenue total as investments make the last of a is continue revenue adjusted our compared basis growth XX to that between a to percentage will G&A the to as year. continue to percentage of XX of support to

expectation million. remains expense total tax Our $X.X and million this $X.X for income between year

further us continued Our fortified the growth. balance activities our capital during and sheet markets positioned for quarter second

the more anticipated of our common X.X settlement. for we than During $X.X transaction upon This million of of approximately million May of stock proceeds forward net billion shares additional included quarter, equity. $XXX raised

the $XXX approximately via million equity, second forward of quarter million. X.X We proceeds we $XXX also ATM X.X approximately outstanding our program, forward sold shares of million. be settled realizing X.X In anticipated approximately existing June, agreements, million $XXX shares under forward which settlement. anticipated raising to proceeds settled nearly sale million nearly still net upon had remaining shares during end, are of million quarter proceeds net we of to At raise net

of assumed at XXXX. the is just with loan of acquisition of loan December connection million over the X.XX%. in in matures balance principal mortgage Additionally, a and $XX portfolio, interest Depot only with The interest and of rate Home fixed a Walmart a we

million $XXX of approximately of billion us Our of more quarter revolver markets equity. end, our including during quarter on forward $X.X strategic on capital $XXX provided cash hand, with transactions liquidity at availability million outstanding and the than

place, As the fixing have for at prior of $XXX effectively base we issuance X.X%. in million unsecured rate mentioned approximately contemplated debt on calls, long-term starting forward swaps

with together our cost this to investment year's activity. hedged million we than more of forward have fund outstanding Taken the equity, of capital $XXX

XX, pro $XXX equity. forma settlement net EBITDA X.Xx As of for of our approximately forward June recurring to debt the million was outstanding of

Xx. debt the which EBITDA principal while level Excluding was and remains X.Xx. our approximately end preferred quarter ratio, equity, to to enterprise our a healthy dividend unsettled fixed recurring Total includes net was forward at charge approximately of value amortization coverage of the impact XX%, at very debt

of this hedged a million in upon back our per two-year we capital growth XXXX, well-covered continued stack that, Combined gives level call in robust fortress-like confidence with share to to high balance Building investment believe share XXXX. the like this over and high nearly significant us the growth Joey. very portfolio, single-digit more Our share and than liquidity, per AFFO per of compelling. XX% in I'd With AFFO $XXX pipeline turn growth growth leading implies achieving retail is in teens. sheet our dividend,

open this for we'll At Peter. you, time, operator, questions. Thank up it

Kim Truist. [Operator come from will first question Instructions] Ki Bin with Our

Joey, go back topic. to want to the acquisition So I

you've lot a that talk on and the rate, to the of Could of dynamics year. outlook which the closed over just X.X% at close pretty cap you about done looking assets past on pricing your at? you're types where You deals is about a

Yes.

I dispersion high-velocity more rate and seeing that concentrated about last in is product. trend call, upward the in a think as we we're obviously cap build wide the cap merchant among talked pretty rates,

cap in General, rates. cap seen increase XX basis rates. Dollar we've to XX increase Names you, tell I'll points in XX we've So O'Reilly, like seen specifically,

cycling quickly. are are moving those fairly who merchant products through Now builders and through

cap to of fluid product sticky less are the spectrum, and the there there. end the get You still other rates out

it's tell upward see pretty trajectory wide in an a you do cap we rates. dispersion. So I'll

time. rates cap in starting It see we talked to a and How merchant we've do again, build type long that previously, we'll product. greater will take space. fragmented highly adjust, As velocity it's large see. But with about

expect we amount should to X.X%, the meaning decrease time? Agree, for X that mean that does what So over

can't be today you, beyond I anything can't tell quarter the I you. third see with to honest

one, again, XXXX I to from market function are in function a be to we remnants think how XXXX pricing. fear to be or sellers We've quickly of going it's have how adjust sellers that who macro a their it's obtain XXXX moved still but the environment, expectations. are degree, of going buyers the -- of buyers hopeful

cost most think I is these been as large year rates. at our our cap of capital, spreads all the thing they've as long, important even are today with

out for advantage time, of reason deal balance pops But our capital day, the given us sheet, the liquidity of platforms. to new cost three and take we'll opportunities all same at our a So there's opt market. across our Every profile, no of given up.

And just question. last

the want gotten your about has cost the But just be about does more might the IG How make -- your of your You take in not if your that space more of the wasn't talked in think just your traditionally to of that and sure maybe that's balance reality disruption you space. assets that? have some wouldn't attractive? much like or enlarge bull's-eye I do given sheet, you capital but and comments seeing. bought you advantage perhaps high-yield comments, the all about you pricing

the country. we're to our No, to best XX retailers XX that's stick in and to sandbox, the going

today. We rate you construction they're today that pressures upon the And prepared if talked the The are cap interest disruption merchant amongst remarks exit. about the in much seeing as are There's builders tremendous rates inflationary obviously loans I are to volatility obviously, do, harder are higher. under pressures, obtain.

typical those would uncover I PCS because we to types can anticipate -- so a And opportunities we We need to of our deliver. continue financing. platform don't construction

a plenty revolver have access $X of We to capital. billion and obviously,

obtain risk or a up So few achieve the to top makes we're to curve no, don't going go to think points. I stick the any sense XX to XX extra today or it retailers. basis

Our Joseph next Nick will from question Citi. come with

PCS, new CPI kind anything you struck, being look on being at the there lease of to are terms or Maybe changes as deals protection the leases any signed either or inflationary, in just that from development else?

a good traditional would higher that our retailers are they lease growth question, tell What more I'll Yes, sandbox it's typically terms. in you, of now years rates, I have options. every Nick. five to the amenable you tell and their

potentially retailers are given were serve more every through today the one seeing options. on we multiple bump bumps or inflationary X% five seeing during while bumps pressures years, so the amenable And continuing base the to XX% bumps and then or

as walk you kind you in your investments? touched you of on, then And little organization benefits internal those the Can those opening think, some the of initiatives. just make and I more forward remarks through going a

can than much speak phase can. the We it briefly. live with MRI Yes. to I overhaul with Peter I'll of with first went on our technically touch more it. it ERP

I'd recently, effort was a, you MRI. I'll to multiyear specifics speak the convert timberline Just a tell that to it. let you, of Peter, to from

Yes.

the data our pro system system. underwrite forma the been work from abstract to It technology years other multiple to modules We'll leases of mentioned includes new to portfolio couple from busy and we very developed sources Joey on across organization. allows thrust we've real-time realizing MRI including Just which as the year which now continue departments order asset And to prior look contract net in we've We're talked on and that us the on software the seeing Joey ARC ARC enhancements critical already year, to software or their whether while year, a estate in then the lease calls, ARC, software. organization, including is access over moving efficiencies, key make it's speak and us lease throughout also that the system hires become internal management a new detail, implementing And real that which using of understanding half proprietary in stated that documents. that management and in-house, team value and for And our the software pipeline to for team. data alluded three-year remarks, it prepared more including the for tool, new the our impact a state-of-the-art. Everything thrust. reporting. had other ERP to that information Intranet implementation, triple a includes throughout concentrations initiative accounting portfolio positioned metrics is also or our with about provides to on I with Nick, we a to this along efficiencies to, this done, live us three-year financial number a MRI the succeed intelligence initiatives, Internet with leverages to with additional AI of has other first that and forward and ERP past year have platform has

Heffern from Markets. Capital will with question next RBC come Brad Our

ground bit slowed that Can that assets value lease. opportunity a from It related? market properly roughly XX% or more set it about at. it acquisitions you was of is of the quite the reflecting down Is the those running talk

a both. but it's I little a It's think of great bit question,

as we pick all, our anticipate. quarter in third the think I of first ground will waste up lease, activity ground

initiation attention a been space. I in peer, what Obviously, That's cognitive, call become SAFE, the ground in and company maybe XX a think in There's more peers to a we if brought for, it, more years continue the advantage the two that frankly, lease that sell opportunities. dislocation took safe, but number market high-quality of we uncover has the side space. not ground a months by to within of still like space. like lease ground really pricing

on This Wawa we in ground all quarter, CBS, and discount lease, Delaware bought a tire the so ground Lowe's on leases. the the

ground space net But But obviously, And at continue the opposed very like disparate space. I opportunities has everything lease, we space. fragmented the be in in as is on with so triple really net in see conflated more, and arise to it the you there think lease be obviously just lightshow interested general been will times. to

was your this Okay. people how talk about And you for wondering could point? team, in billion, if $X.X the scale transaction have Got point? it. a many you And scale then to do $X.X at to this at little you the what that I bit obviously, think your addition billion but for

call it two really then subgroups. acquisition overseeing XX led another the agreement building diligence purchase is really four four members team We've out of with team members transaction the in different by job we what team, done And contract in negotiation has team, tremendous which close and today. teams XX which through a lawyers

And so built we have organization. scale the and out

developing We We terms them here. are think continue way agriculture up on most important young and wanted appropriately talent to in acquisition to bring are we the scaled of grow. to continuing in so we Agri That's realm. the focus origination there in the to

Stevenson Janney. Our next from question will with come Rob

How are two, be from the for here now? tier three there you does own in mean appear you today? to get thinking may not the market years to I for still want stuff well-leased portfolio about from doesn't that a assets. selling the dispositions better market But

few much of you To Rob, de our today, list here of portfolio really The minimis, with there much be that all. left. There those frank theater watch at you that if mentioned. extremely that isn't outside left is assets of isn't

the are so portfolio comfortable where very we with And sits today.

we where wanted and a there's estate valuation where better But today. or a the and/or opportunistic have right? We been tenant in dispositions disparity. of them the want real just by specific just never has really shape, we piece portfolio exposures by at pricing will look all where We sector

portfolio, in of in spot concentration a sitting outside few the we're in theaters portfolio again, those quality and terms of really good there. So

most assets lease place, in And development more in someone you you then existing leasebacks. the that but guys with structure Okay. PCS of acquired some you've else's done ramped sale the stuff, bought guys have

are you cases, CPI than when you et days starting a on these in blank can bumps, obviously page page. that terms with length with guys a lease? take structuring you're indexing, of Anything cetera, start So annual lease, rather those else's in blank somebody of differently

again, for we're different out Well, I think, first, rates basis. able obviously back on growth going to earlier -- very were the dynamic. get an that that better pointing is able to obtain to Yes, question, thanks because we overall a

I not think amenable but are the environment. more pressures retailers inflationary understanding overall business, the in only their macro

I that that's area because blank that think development leasebacks So and select broke to able you start a dichotomy specifically, -- is kind those a from slate. you development great that true. in In we're there out the of sale the

Our come question next from Haendel will St.

Juste with Mizuho.

[Robin Bibi] St. Haendel is line This for the on

you Juste. comment and the be I this you guys that are work-from-home on forward going sector, industry bit it your is out persistent? hope a Can where given seems well. plays think you largest auto doing how to tire industry particularly

think cargo desk, The remarks. prepared on To average extremely the production a President's Obviously, bill on age road is in a XX a U.S. record. just years. the today country. passed get cars increase chip of is proposition. I to is the in It's this spoke difficult car we about an over the in

look I go. look pricing the trends, travel So automobile are cars if where think frankly, be auto the industry although the Cars -- it's But those than and That parts trends whether are seen frankly today of and/or expensive some the if tire miles. de-escalation continue if on road. thrive, driven, of and used those actually run in -- the you are The to there, cars. the service at you think at duration different industry for today, at because more cars to the very will is in construction new work-from-home cars the we've you the XXX,XXX for that link, you miles out I made look if see past. auto used in

service point They -- are And space, are the if best so in synergy X,XXX overall and the some of auto parts look feet think of retail recession square It small the in you into fungible macro the has thoroughfares and especially all foot. major I in industries. between with low it's dynamics the at rents here a heading believe great we're square They and the per boxes X,XXX of typically country. space. on retailers trends, a if favor you tire great

investment-grade quarter exposure one more the second you for cap the would portfolio? large here. the Just have been outside disclose what Can of rate acquisitions the auto and

Obviously, company. We're in a can. the real over is sectors pretty obviously, decisions in investment well have to isn't foot We've of one largest, a terms us. a especially for of world. driver thought transaction, strict new of their of as it said around our referring in grade It's roster, It's sense the a related. transaction. tenant performance. any very we square we transaction in our sector retailers, arms regards It's NDA obviously under estate related. the but we're to It's this residual a It lot make as I always investment. and comfortable. a that the is And level our XXX-year-old you're here getting store tenant, rent in per

line traditional, that last investment-grade of XX%, really couple a our the acquisitions would anticipate years. closer metrics, in especially our next So basis, for of exposure to be of terms quarter traditional in XX%, holistic I north on to with

Got it.

strategy and willing equity. what your X.X% to? the target Just you let one Can this Currently, forward up is. What your you more here, discuss to sheet balance leverage I tick it's if can. with are

We pandemic. brought that always to Xx to range targeted our Xx Xx back is recurring hadn't EBITDA. we've to Xx. debt up down net during leverage brought stated to We it it Well, the

$XXX cheaper of if the at equity, and the cost there's our I debt is million you today tenure debt obviously, of made capital look be argument, to a an structure, at X.X%. equity of of swapped outside our think cost that out than today

remain positioned to to sheet they nimble on that opportunity is it's And execute and any strategy flexible, to remain arises. so our balance remain

Golladay Baird. Wes question from next will Our come with

First equity in. one if extremely and attractive attractive, just were spreads to still good, you point was cost that very issue the but attractive later to down related with of could was that you to made road last the maybe where maybe less come

you question continue equity everything my when the for would the is fund So to what just with term over spreads after you appetite near be, your and relever fall?

Well, thanks the have question, is first, just to would of the Peter. more for provide little position detail liquidity swaps. lot a that to here. I said, fantastic in relates from bit a this we're say Look, a it we as a perspective options and

And nimble to opportunistic we so we'll as terms continue capital in Joey and markets. said, be and how the of access when

you this the behind quantify then a acquisition ARC Is more flow going how way numbers coming is it? maybe been, last Is there of Is higher launched way it it put Just And Okay. helping in? rate? to think I deal year. platform. close It's to any a May drive in to volume? it

portfolio acquisitions, relegated simply management, first, not ARC administration, it. metrics, has originations. is diligence, to all ARC into transactions, Well, lease asset embedded

So the and data portfolio statistics that's embedded it. into all level

and there, there tool, KPIs, make tool, rates conversion it most to to a directly. real it us no us it to it's to in is there it most the drive time. quantify think fly I way adjustments what on a management allows is What important to is self-management allows is drive importantly

at algorithm and do transparency we tool our towards I'm our here Peter with the to goals quantifying be up a Reuben And and and so a as look move I'd ARC. to would of of progress do. But it come can so. forward as manage difficult our or It really tool we spent impact some tell yet objectives. progress measure you, sure time lot to haven't a of we

will question Ronald next Morgan Stanley. come Kamdem Our from with

for quick ones me. Two

-- sectors mentioned of going maybe going forth. never tenant the next forward, talks and on or XX sectors looking XX forth. over stronger thinking pause first Just or are more the either with just that of Obviously, But lean the cautious on list about health and into back commentary. that you a to almost so so get How you you retail on you're as months? there's guys that sort has to and more watch into obviously, been recession you

Brian, the It's same for I really question. us. appreciate the

We of or perspective. COVID portfolio recession was changed lens tenant operators. from resistant outside to with superior, of really high-quality a the since with. a goods sector generally constructed even perspective We begin avoid haven't discretionary XX,XXX-foot The

anticipating to been a the we've the or I of long-term, not the -- nature would the recession month but year, you just that cyclical so And of because tell day economy. the over of the

so into is unless goods Does or that into experiential, that luxury don't sense? luxury, high venture high-end And investment venture make don't goods XX,XXX-foot we we perspective. there discretionary there an thesis that overrides

Great. Sure, it does.

of acquisition is if think about right maybe similar sounds the sort to big had, forth. any credit you're could The of as we're costs together XXXX and year, It is interest this obviously, so that pace sort you second in be year? this of of for similar question slightly there sort losses potentially way not running sort putting I locked like just but up, But rates of a sort sort breadcrumbs we're but of it's and the or thinking, we're pieces of asking it? guidance and for other

environment, probably I think right in think a static to about that's the way it.

everybody cost is LIBOR SOFR debt, of the the impactful. transition obviously, in to think and across obviously short-term board, increase with I the

Peter mentioned, the have As in put long-term debt. place advantage mentioned, we as us that for swaps you

our of equity cost well. of us capital structure puts as terms in advantage in Our

XXXX We Xs trading of the sanity in off such speaking, into O'Reilly called with think don't and I is five in generally -- XXXX continue low saw static to the we've out. just at pricing, two are were coming in just a at I'll environment think, caps. I tenants I call Those when likely highs XXXX. trading is Dollar it, General most

day our going pressures job of mitigate lease it continue across to us to know the in we're a to in that's to here, to an specifically can a from when not perspective, of three REIT sheet to opportunities is When us going confidence into see cost the there's from recession done. perspective. dislocations we're the assuming somewhat, not show given of take end get -- our Fed. inflationary assuming look by soft combined To continue see retailers capital, you're some to that the that's space, labor the space in They may that advantage other at platforms of difficult continue are have we get our market. a the look level think done we've of landing we're that I type with seen. you capabilities at changes and our and pretty balance pressures at enter pressures but the engineered going they're the that to players going And here net but and space, deep have

question from Allaway with next Spenser will Our Advisors. Green Street come

on your other as that been et but Most to asked PCS you the increased guidance. confidence for I comment some can just just mentioned, my development many in you But executing construction any financing. maybe just cetera, questions labor given of have don't there's you understand been one need sectors. delays caused permitting have development backlogs, newer another shortages, in just developments, regards in

out Yes. in look, project. the It's we entering -- building speculative team. not We're terms spent in capital of our have construction

until closing all we're of waived. been dirt a So not have piece on contingencies

that we go. not getting general price waiving Spenser, This the fixed place basis, today, know, contingencies entitlements We These single a have projects, return with are and Most of on pieces. have and we're the systems tenant tenant undertaking cost. contractor maximum that multidimensional as getting is in frankly, triangulation to onboard in go. the guaranteed are a we're open once we're bids so projects even they're of a multiple all ready in from moving you hand on place, book and

eyes the buildings understand we aren't wide retailers so development so building And cost on into that doubled component retail here. eyes next week, jam and the open, about every of metal and or you Retailers of but risk partners open them in go these material. pressure and go today going terms have to certainly wide into we hear some log of our understand the go inflationary next

Jefferies. with Tsai Linda from come will question next Our

the pressure and you Dollar other merchant be more there on of you like names. on it in would O'Reilly, might the cap rate Are names these comments highlight? resulting for Generals builders investing any expansion terms sounds the In in

Linda. question, Good

or get movement, get are Obviously, those that tenants get is growing The line those seen cap with two to recycle their of bottom they're material or another through velocity. organically rate capital any a the Dollar of come in is their other think one. their I program those capital are at test some developers mind high need either developers we've to working that try to new out ground the for ground the private and just that for reasons. build ground Tree that with of tenants that in projects merchant

that tune Supply not off the trying are partners stores the developers the year. Dollar to I'm think need tenants. interested too of necessarily. X,XXX Tractor us, But with interest challenges price of most we're material cycle as Stores per retail those seen high-growth our It's but So for growing points It's that the in just too we've in of Those top as is just had small names. greatest the We've and are capital. to widespread comes or head there for units to to the to doing quickly XX obviously discrepancy grade my development. strong mind, They're change growing per XX is there. not directly something discussions year.

rely any to on is private are as you significant net a developers retailer, a today If a grower environment today. at it velocity challenging

come will from America. Bank Joshua of with question next Our Dennerlein

So I've you What of lease lease period outside is curious of slowed have paused. comfort kind down that that earnings of thing year-end? picture. of just or the transaction even robust big market to net the this noticed kind remain net market seems gives kind the One on through will

Well, And in robust year confident the Jos, in our situations think year-end. the of mean, I'm because of I'm that based net lower one. capital slow driving spreads lease availability not leverage, negative ability will specifically remaining private upon had LTVs. we've about that I the biggest market sure our of now cost the through looking all you're is leverage I most at these and purchasers

do greater QX best see of through us what the estate. so of best advantage that's And at to do take spreads. and to going what going And real -- we're retailers you're QX. is the

sheet the from size of of Company built platform the I speak a company going given positioning while balance acquisition been of of opportunities. of throughout the so won't we're but just And has advantage to This take cost Recession, dislocations, doubled Great the pandemic. we've capital perspective, others and the our to advantage in capital cost take those to we whether launched

we of We've the pretty of are the is swaps been place our market, wrong ourselves side a take lack part equity in always the that's being purchasers forward forward advantage We inclusive with on on side historically. position macroeconomic overall today. our for sideline, on turbulence, debt, of just downturn. and starting feel the debt in to in good of whether disruption positioned to hedging But policy other swaps dislocations

ready, will we we are so advantage And be both opportunities that small. of take big will and

with come James. will Milligan from question next Raymond Our R.J.

Joey, just a bigger picture question.

There's think between in at discount you You space. in market there any the is I'm which Are be higher curious multiple Agri some your do highest guys a a just public would seriously of larger. portfolios are you cap you M&A? other trading or and public-to-public significantly argue about now varying with interested guys and peers, dislocation. how could your the

is public-to-public look side that We M&A we X evaluated opportunities read there, them. rare, at and obviously at everything opportunities, look think from I out are million all few a billion. to all fairly

through to this move going see M&A I cycle. we're more economic potentially think we as

I think G&A efficiency a perspective critical. from is

critical. think and of capital I obviously, is cost access

day focused lot It's margins. everyone the here. at is something to not on the end think we be on of spend of a going time I

been, sense given qualitatively not threshold always methodically the has over so that the the move constructed it, threshold time. that we portfolio to going at surpasses past, years Our qualitative then anything Does that quantitative. XX at And to call we've dilute it if pricing the we're and make then meticulously.

like I answer to turn over question This our to closing and would remarks. it session. concludes Joey any Agree for

you, to Thanks. us thank person See look catching in we forward soon. as for hopefully today. past conference and Well, joining reenter get everybody, We you summer. season up

Thank you today's attending concluded. for presentation. now has conference The

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