Agree Realty (ADC) 24 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the Agree Realty First Quarter 2024 Conference Call. [Operator Instructions]

Note that this event is being recorded. I would now like to turn the conference over to Brian Hawthorne, Director of Corporate Finance. Please go ahead, Brian.

you. Thank and XXXX joining Earnings everyone, Realty's for you Quarter First Call. thank morning, us for Agree Good

Before turning me the to the discuss call language. over to results cautionary the Joey for quarter, let first through our run and Peter

will guidance. during be that under securities we forward-looking related statements certain laws, statements Please note including call, to make that federal this may considered our XXXX

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

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

capitalize uncover thank pleased organization and report ensuring We focused last opportunities that Brian, our precisely our is on will you that we morning. positioned joining we am done on us we mentioned well to nimble are this have when as call year and what all we them. remain every opportunistic, far I this for on Thanks, is to day. so

unique itself continues sort our market lease out, team uncovering the While job transaction a opportunities. to leveraging is our net relationships and doing tremendous

was we've and mine average across of driven achieving quarter year-over-year. team prepared proprietary outbound the retailers quarter call industry-wide the approximately in marketplace our environment and an to seen when is the This up best-in-class focus our an has and within to seller the for continuing while relationships. little to are contacts origination Year-to-date, opportunities, light, effort our the acceleration volume on of often last team, our calls We first data which weekly yields being see transact. our acquisition country. Though similar depth made is to first sheer is competition database, by a in second and of the XXX vast XX%

rate proprietary our letters intent up ramped efforts signed by opportunities. investment over of leveraged XX%. exemplifying have deals in conversion we deal the and accretive years and Our highest approved to at flow off-market relationships, we of our committee create is X how tenant Simultaneously, approximately our

hand-in-hand efficiencies to continue operators expenses. We work and drive with country's the reduce operating to leading

extremely from with XX% weighted-average hedged and of positioned over remains approximately years until no minimal is in $XXX total rents maturities of million more well XXXX. over liquidity excellent term than portfolio shape of $XXX sheet million, derived our and with material Our a maturities. Similarly, lease investment-grade debt lease capital balance X retailers, maturity

quarter regardless This share adhering AFFO can strategy. to environment, formal our growth introduced marks while that the demonstrate material we've earnings of provide shareholders to per important we the it believe guidance. to that is first time-tested time We

AFFO portfolio provide can different at growth X.X% through between best-in-class give midpoint, balance our long-term and we origination economic us our the with enhanced Our fortress ability demonstrating confidence reflects growth and year-over-year environments. per $X.XX combined and that achieve year. This the efforts, to earnings reliable sheet for $X.XX share consistent

spreads range. year guide. year-to-date. free anticipated million continue basis, into a achieved the well over acquisition leverage-neutral articulated to We flow million have activity we ending with cash and leverage able At activity $XXX capital have conviction on $XXX that to basis, in we'll $XX the half forward approximately million this largely outstanding to annualized With $XXX visibility $XXX an time, targeted this we have to year million, of million deploy disposition be the of and we'll roughly full fund of within consistent approaching be able our equity

external growth our to Turning platforms. X

we platforms. year-over-year. us During quarter push point higher quarter, highlighted $XXX in efforts and the earlier X.X%. a a lease net with rate X The basis a increase all significantly first to average million XX I cap point retail rates invested enabled cap XXX reaching during across This properties represents quarter-over-quarter XX the basis weighted high-quality increase

for accounted acquired. annualized of retailers Investment-grade rents the base XX%

best not on spreads aggregating achieving of volume. investment simply points risk-adjusted focus least the remains and basis at XXX Our on opportunities

XX In X the with cost we the DFP million, during completed and During anticipated million March approximately $XX approximately we quarter of or of projects had costs projects under quarter, commenced construction XX. incurred total $XX total inclusive total, million. development also the through of $XX of with costs anticipated

for less potential and mentioned and more approximately proceeds average our of was properties the investment-grade of on We the over with has were dispositions rents to for $XX last opportunistic X.X% the during come than call dispositions rate sold that X derived gross for quarter. weighted the The cap from X/X fruition retailers. million

that We activity select XXX and to to attractive were the at capital which Florida, see of assets, Car set will including Wash relative reinvest to basis these sell point a elevated approximately continue overall sales spreads. and in continues at yields Collision a market. assets Gerber XXXX Mister Included in

former in will be Auto options Hobby extensions leasable Parts to on management May, Arthur, A Supercenter Medical gross former in Mena, Massachusetts, a extensions Texas, Arkansas. a of Aid Care was Fresenius Lobby or O'Reilly and new with Mississippi Walmart Port square included Jackson, the and in Danvers, during new Big options were approximately to home Buy Two executed leased the On or a Best the area a feet quarter. XXX,XXX front, in Lots leases Cape an New Jersey sub-store. asset in leases, we during executed tenants Notable North quarter. Rite

considerable leases XXX% long-term We achieved beneficiary averaging credit and for both also containing favorable escalations. the re-leasing spreads upgrades locations significant of with are

with rents maturing. points base annualized year expirations XX lease for only minimis remaining basis leases Our are of de or the XX

we in intend We the with currently very finalizing retailers on to former X pad sites. existing leases Beyond remaining with demolish progress of the Bed pleased are portfolio. & the created only be multiple our ground to negotiating Bath Additionally, box that letters lease and and of the to are intent were

should estate have anticipate which will information detailed our I believe significant former While will we rent, the Bed lift to share to I Beyond very more a highlight I that next further underwriting. real Bath quarter, relative and say

be they will of questions The plan stores of base years and average have of continue the rent. they nets to they total weighted our any Tree, only announced rent X Given we current discussions and lease that which the basis than that Family stores all to Based our lease closing less not term Tree on portfolio in Dollar pay and to recently wanted closures. Dollar Dollar with store address term. do received, points XX our a close years represent Dollar X.X of Tree have will

in retail have several the of of closing. our We half to locations are interest backfill already that partners received

opportunity best-in-class we earnings a Lastly, a with continue significant team platform, growth. in to proprietary see drive to technology a

built markets. is for model Our all

dividend balance yields X% we sheet, proposition opportunities very deliver offer AFFO at and environment. uncovering all we can growing that retail X%, are share over current believe portfolio in a that over country's with we a We of the per compelling the growth the platforms a are midpoint. fortress value leading Combined pleased X across and

With I'll and over that, we up for call hand open questions. Peter, to can then the

approximately percentage share Joey. per a Starting first the for million Thank of during X.X% respectively. AFFO increased each year-over-year first contributed rent quarter for quarter pay to year. than FFO of and you, share, core per $X.XX rent typically with during percentage year-over-year more Core to per share, quarter X.X% increase. FFO We representing earnings. quarter received the $X.X of earnings which the was the $X.XX. AFFO $X.XX first Tenants

full have X.X% acquisition tax $X.XX, As share disposition on AFFO expenses, growth midpoint. We Joey several including general in at we release, inputs for nonreimbursable mentioned, expenses XXXX income our expenses. $X.XX volume, year and estate per and earnings to guidance other and and introduced administrative representing provide of real the other guidance

drive ability a and growth our demonstrates which earnings further guidance dividend. well-covered consistent Our to growing supports

of an the February of During the a annualized monthly monthly represent the dividends $X.XXX first common we for of XXXX. cash March. On over first the January, dividends quarter from dividend basis, each per increase quarter, and annualized X.X% declared share

XX% Our dividend is AFFO per a of for very share of the well quarter. first ratio payout covered with

$X $X.XX represents per dividend Subsequent share quarter The of of also to end, an we a cash per monthly dividend April. and common for year-over-year dividend annualized equates increase. X.X% a to announced share monthly

$XX million in of forward the $XXX with the position cash quarter total hand. equity, roughly on on $XXX to of excellent sheet. million including balance more liquidity We million and revolver than Moving availability at million of outstanding remain end, $XXX of over

the under X%. starting We fixing $XXX a just rate base million for unsecured have XX-year swaps of also contemplated into at entered debt forward issuance effectively

our outstanding equity, activity. with with fund hedged $XXX over provides million Combined forward capital us investment year's to this of this

revolving facility bolstering free on the million proceeds. Further and commitments is to million, million our $XXX after million of lender approaching $XXX $XXX dividend, $XX Our additional loan of an annualized position request and anticipated options, allowing have credit basis million also term accordion cash $XXX respectively. us and to liquidity disposition flow

X.Xx, debt the was which for equity, to flat the outstanding the net end forma of of of EBITDA our pro settlement quarter, As forward quarter-over-quarter. is approximately recurring

equity, our forward debt recurring X.Xx. net EBITDA the of to Excluding unsettled impact was

enterprise back Our principal like to charge our at ratio, to the approximately call while which that, very over X.Xx. coverage dividend, Joey. was healthy includes With amortization debt turn and the I'd total value to is XX% fixed preferred

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

Raymond question Milligan at First from comes Instructions] R.J. [Operator James.

of to the share So curious a guidance. newly now. was per with start to not catalyst provide Obviously, just AFFO off providing want I it what long it. issued the history just I'm

I think couple -- things. a of

guidance and just I we're the crazy bordering net most in think, provide REIT pretty I clarity we're I performing execution. REIT -- environment. it. solidifies should definition macro net and uncertainty with mean this in uncertainty the macro -- think a well for I a surrounding lease don't probably that world And I in ever by that first, the haven't recall given I a this environment, certainty of lease think --

a balance defensive sheet. And the And wanted isn't a we REIT everybody that from team here is say to I This And is portfolio, world recalibrate confidence free a easy of lastly, that obviously, in deck, money, growth our then consistency. fortress today. consistent here with to page a again once investor just the be we to and will world order then third new in. I'd think the going reinforce the second, to

them -- And it have GFC. time being last the of obviously, seen frankly, perspective, them so none that most the of from

a leadership So as to team, internally. reset needed we

entire the to the year for team. in and theme cascade down Our dialed is it

leadership team, So the my which to been last here you and is our integral has execution, everyone embracing in hats off the to strategy lineage Also team. the now but operating operating thank our win new it. talked to our here not We And and about it it play on in it, to the call. tails in we're we're off normal. this just game we're working

so this of to And our think consistent historically clarity is with level providing I factors, those performance. Street given the

That makes Thank sense. you for that.

on cap have half You about rates the acquisition volume Can those talk are visibility where the about mentioned falling? year. total for guided you that just of you

QX, sourcing probably next Right in with just line the is in wrapping that up here. effectively in We're QX. days line few QX, for --

or or curve. minus to without up line, mandate basis point something to basis line closings that out. of XXX in But going strict falling XX right risk right to going the We're plus QX hold So points, or leaking in of spreads into subject here. plus timing

pipeline, that move noticed just have given any interest the in And of rates? we've recent changes the in you seen terms

I is most This our hard -- remarks, are in in transactions. the any a the assume, recent mentioned The function as move, market-based I'll in changes say of I prepared pipeline, work.

And are and/or track outbound that with XXX-plus rates on extremely sellers desire transact. so focused need ARC higher, have with a to those strong that we're through we conversion that

from or or opportunities where to continue here. hard value look tenure. the attempt bring those we'll have unique see volatility cap push that with of insight or the rates cap value to -- do table. create what to can knowledge But we so asymmetrical for higher rates the to again, will here And it's We'll

XXX% can And some positive you that XXX% I Or is your think I'm a you curious just recovery? re-leasing. in mentioned if remarks, a one follow-up. prepared just is XXX% spread? on clarify, Joey, rent it

XXX% recovery. It's

sorry. So Fresenius the ahead, go and --

term. was going the so to XX% rents higher I say are than previous

Big Aid the Correct. Lots with former hub. the The which Fresenius May, then the and O'Reilly New Cape Jersey, former took Rite and

or superior important with importantly as most well. is base as So here with we're operators XX-year vastly I terms escalations think getting new obviously significant

Nick from Citigroup. Next from question comes Joseph

the point what fourth sequential go that rates really quarter. Joey, pretty I cap increase XX driving just Obviously, to jump. to in first is a over big want quarter from basis was

there So the there understand fourth to want to relative tenant deal credit you is I just any in of what if or saw makeup quarter? change in the

no is new to go We're IG No. of acceleration pharmacies the we're to not QX. composition. check the we've We're on operating similar down still up was to seen QX, I Very we're talked the to for coming defined and curve. volume remain disciplined. within dollar proverbial very about context it. loading here. similar We're stores stretching you've aren't we for -- as our box risk the sandbox the but not names. And going what the so Frankly, going box Obviously, composition up historically. and

And rates cap move higher into rate a you rates How increase saw XX-year you given cap into up side. the adjust this on is lag of with range. the of may would more to see the a kind then the potentially just before already quarter environment, of to or kind what's kind the where bringing is where long contemplating it theme if sequential was happening first it a of the stays normalized start XX-year expect on of

It's a no great question. direct correlation. There's

I fair real there applies to transact. Without But to mean, see really causation classes the to we -- all the down it's a net what think this asset the there's market. impetus sell, I the say need and residential there. isn't all sell the without to way lease stabilized to need estate single-family in for owners just

glove or on there's our Peter underlying working opportunity Situations as to references what here, know divorce again, we're that to opportunities hand shorter-term debt extend where estate where are fundamental maturing and death, it. mark-to-market retailers opportunities there's a so or real with or in the And often in focuses solid we high-performing refers just embedded XDs.

September see when I by those seller's you, tell -- instances hesitancy a cut. it hoping for market a interesting to I'd here. think how hope So transact frankly, cap now lot see more it June of a driven, would we'll I of to types cut, is to or in But were they're they hoping be will we're of going March a a for cut rates,

obviously at murkiness least. the And perspective, from so seller's overall it's -- environment there's to a

Next question from comes from Kamdem Morgan Stanley. Ronald

Two quick ones.

Just on -- starting with the guidance.

debt? are what -- does baked how number? thinking to guys historical? compare Just you in terms into that bad What's of And that

Yes.

we that is this with scenario of X% XX do-nothing of a credit we embedded which Last Ron, we the conservative in share the talked So per points growth, AFFO over loss, year, when scenario, at as about, basis Peter. time framed came out assumption.

is that credit this points contemplates think assumption conservative And of I still basis XX today. loss. a guidance range

with conservative we points. view guidance XX our visibility to I points particularly And a about think average level through basis is today. range here in as our as basis closer I've longer-term talked historically, XX April,

just acquisitions. then my on second And one the Great. quick

think sale-leaseback I sort ground you in cap rates, on of rate move? a recent but rate about can How the talk are activity of cap you things the basis about lease interest the with market. talked sort reacting

in had given -- a the the a Sale-leasebacks, to of couple working in muted a sponsors issuers, sale-leaseback leaseback. the We're until of And market most stability that sale a potential rates. if holding in And rates, equity going private base sale-leaseback market. see is week very tenants, tenants they reticent rising couple they're get they money, discussions the be opportunities enter couple the into We've given But today, IG pattern. are need unsecured last we got of in are I materialize. on where are some to with issue unless of outside in market the comparing then to QX. we've here these think activity We'll most fairly those so right? the can

we're to most going need that importantly, transact any think not our capital. with I tenants

out couple they're of are at. that patient, And so we're there we're but opportunities being I being a there think and patient looking

the lease market. And ground

a frontage, X about lease only ground to term, of the seller or always look The Depot the lease market. Joliet, Everyone is Home note I ground acquisition the Illinois. same market, essentially net take I've of methodologies at remaining retail sourcing pool lease years in in second XXX feet same can it. Ron, same pool lease a largest as this that in the It's go was with rent. dominant would like and quarter, paying said, corridor traditional approximately $XXX,XXX has ownership our a

forthcoming the term. wondering lease going in to if be terms questions out curve the average is So we're weighted risk may anyone up WALT, for there that and of

Just on look Dunkin' a real store high-performing at the a subsidized on one by Google your with Maps. is significant frontage, This own sublease underlying estate Donuts outlet.

the the us those in underwriting. So of lease our finding to for opportunities in sense confines but we're space, same the methodology and got ground make they've sourcing it's

question from Truist. Next Bin Ki comes Kim from

to Just going guidance. your back

trying Just of to approach time your it's to have your into just to sense it, built basically to conservativeness a -- how trying to I how philosophical trying is fast the get it. issuing you think gauge that midpoint, we're see to first achieve much given it run

going to is guidance that our be achieve. we're obviously that realistic. think I something able It's confident we're to

and add the more the there? we'll even plays As visibility. would narrow anything you that opportunity year Peter, guidance out, to hopefully give you have

to year of we range. It's that $X.XX introducing would have confidence the have some of $X.XX. relatively range just visibility tight No. timing when in the speaks I April, we're a to from guidance. obviously, think just into I add, hitting terms in that And we in

I mouth, deal unclarity your in the you couple Last what's changed was words want to guess put past quarter, down talking about the maybe the but wasn't there. of flow months? pencils were I of in market there -- and And of approach more a kind don't Okay. that over

So what's in changed basically the quarter? past

fourth since Obviously, think ] from Well, had X.XX approach. if [ X reiterate, been days to X But here we [ we recalibrated to we've XX-year plus to ] back some by important quarter, team has treasury saw more so, the again, I'll Then that in combined our [ stability. then, upward go team ] the leadership a led the on some I stability. march or to minus. [indiscernible] down had XX or XX-year has a the the we've

wasting XXXX We sellers not that are on time are in still.

We the on are our that available that, our to access us sellers with readily very -- tenant and focused gives conjunction with are flow. opportunities to sleeves leveraging up transact in our efforts, real are deal outbound relationships, which ramping and proprietary deep, rolling

doing we're so And transactions within transactions, stores if short-term framework. landlords opportunities that manufacturing I fit early taken and on apologize the no referenced last creating I retailers. with their Working the to or extensions, are profile call. with I that occupancy or referenced stores finding incorrectly. on manufacturing longer to costs was their retailers opportunities. When and working high-performing finding reduce

value XX exercise, rates cap most wholesale but of And rates. people combat. -- so creation declining hand-to-hand it's years it's with a this like buying -- to isn't this accustomed is This interest were is look, and

recalibrating the job different a so refocusing, has in environment. And a wholly team tremendous done

Next America. comes from Joshua Bank Dennerlein question from of

investment in just terms of other comments you most I any was the around attractive? attractive have last to you still Are seeing quarter, investment of know wanted spreads. as commentary verticals -- do I [indiscernible] is on there on This on touch that? developments behalf Josh. Or you're most

retailers -- today. developers through majority active remain platform of standard mode the DFP of the and development merchant growth broken is Our

step well how have as to create continue the can value. we retailers and those with so conversations in as we both the on And developers

in quarter mentioned solution, be here, risk. that solution a I project, we're a risk, As to that or duration we has price but an whether and project duration XX-month it's last can X-month going

couple to upon the to see to a solution merchant road we retailers be to here can conversations. higher -- completion, be where continue interest frankly, so actually those few headquarters rates weeks with And how of a perform. lower continue I'll unknown in inhibit values, next a construction on the to we and loan cap just builder's elevated rates world costs, in a ability have

you volumes in Or increase this were increase? the the And internal outbound, Right. new when call what just a in mentioning forward? shift was initiative also, going a is

Officer, tracks our across by functions So here KPIs company. ARC brochures But -- to environment. at glossy and concerted to through effort rates, really utilizing ARC all ramp volume vast connections in that we've Growth of ARC. made led in Obviously, and is out to instrumental our for auction use our all the embedded a Erlich, mine there an up conversion database opportunities aren't call Craig Chief that mine

opportunities that to in of here. days so fruition the of more we our -- QX reiterate, If sourcing I'll right? those sourcing, in come XX during XX going those And just letter are was we to QX majority done use QX. intent really close, got days standard so to QX, only to of execution

here Now the incumbent the New really fruition up QX here here. in, that's we'll see rollout it's -- to for Year is the after strategy, post and come that QX dialed of dial in data theme our and of year, on

Next question Borden from comes at BMO. Eric

about on. to recycling that program tenant you prune of on have was going capital portfolio? that or from one you the looking some types I the opportunistic What disposition that the guidance. you're the could different Just hoping talk geographies are

Yes.

of remarks, activity. albeit I base the to a of a in seems there As XXXX in mentioned low be prepared activity, disproportionate amount

we Florida, Car in Gerber Wash. of Collision of Mister Specifically disposed

asset that and I capital spread. XXX assets, point basis think where noncore opportunities see can XXXX of Florida, opportunistically are with the primarily of us and recycle inbound in dispose to you'll sell continue but we that needs that be also recycle filled to quickly an some

seems the a number hotspot of Florida for be to again, So reasons.

of to XX already have confident we're over over we've And visibility XXX, XX that into range in closed considering XX very QX. so for and

some occupancy should thinking dip of was That's for the sequentially. could helpful. the the how vacates year? be And small additional provide and we then kind a hoping remainder about I had I of you on occupancy just color just noticed

which occupied. resolution XX.X% It's we estate QX, occupied. pretty in the XX.X% were to interesting embedded QX. which argue we is & real box, effectively inclusive opportunities high. I Bath We're mean of it's have going in X Bed in demonstrate I'd going is of Well, redevelopment prowess being effectively anticipate Beyond really some I it's our assets and aren't ability to think And fundamentals also here. frankly QX, that underwriting our Memphis, real highest estate and looks it have identify Tennessee to prowess utilized real our and to within the portfolio estate that in our best the purpose.

And more done QX, breakdown. much and complete so give, can in hopefully, are and those we detailed obviously,

Next Stevenson question Janney Rob from from comes Montgomery.

Joey, talk completed under the were at million projects in a of of quarter? the return end can development $XX you return of bit you sort similar little that what the DFP 'XX. the a And expected to the was about construction projects on

Sunbelt to We're able where with the assets. don't returns projects critical the going We that retrofit buy If duration real I say, there's rent aspect. or to, point with becomes we off that paying to in would like-kind Rentals. an either spreads often XXX estate through do basis XXX do can that approximately We XX again, we're and often Yes. days. credit, XXXX I the existing looking recall is Gerber be Collision. and hand. it's duration. Obviously, but building And to really tenant

the it's to a preview. going to Now talking new that process XX-month be going and if of to not about on there a out duration XX- project. curve very build, We're go entitlement we're frankly if without significant a the we're wide

sense, and perform broken phone or clarity And frankly, don't to get unable trying to here. really or talking so the won't can't developers merchant tension make the team which don't projects retailers to the with end. all that's where they on day they again, developers they're with returns just on have work financing The because the through perform and we're is up back

that buying The opportunity upper can talked at you in not certainly ones here question rates. we're But becomes, which that the shovels we're the And we if putting threshold, return assume ground there's so about, hit a in significant risk-adjusted mid financing our the there. those Xs, Rob. just

earlier are And given you current the Okay. those And to need near many discussions likely you to re-tenant boxes? you're the And Trees. or at the some a your Dollar average then close be about in Dollar bit can that talked not of point? to how future what's likely size about going Trees to talk

Yes.

behind on So years just no for list closed stores Tree's that all guarantees of approaching Dollar of there. of years, stores be obviously X we net. term They'll the less reiterate, XX weighted than will approximately average closing That corporate and There's that leases. the have responsible lease these the Ironically, on have term. chain. to hook X to is be they're all X the so rent X.X, is subject years,

announcement think operators, looking outcome very we're of operators whether they're retail whether a to a stores, within through But the Dollar with Tree can auto the pleased price And now, a in fee inbounds opportunities. years. lot you term X going It other the store into going then approaching closure have we've X that store got lease I they've weighted those or to but given and here direct sublease And again, then years. had these there. imagine rent for over We're with average expiring are nothing per half. low they leases, pay parts are right at enter average to point will termination start dollar inclusive want $XXX,XXX Obviously, discussions. we'll going partners

days? are point? or use is market number vacant & the there them Beyond about cetera, other me. to that? actively or Or there done a little dating there's for redevelopment historically for better So talk located not do doing bit Bed a allowing you Is out an one your Kmart last to financing et capital then retailers of to whether the you've And for back there these guys the play Can vacant Bed opportunity and sites not environment? financing vacant Bath on like stuff theaters, to Bath for movie if given do of Okay. the people with there's stuff buying you site, some the out at like the this you're that with --

Kmart days. It's a broad question.

regional has difficult with to made lack elevated XX% credit as the loan a rates. the interest proposition That's financing, of First, one, very getting development plus XX%. the crunch to opposed XX%, given bank here, XX% cost obviously to at

the here, there's Those & not those too So well, teardowns this of our Bath in right? out, movie insatiable or you're are a are boxes I opportunity, appetite that well-located theaters, redevelopments an for movie first, are If marketable country. owner you, highly sandbox. The and screens size. within teared theater tell that's Bed really many mean, I'll there's Beyond

to if XX,XXX XX,XXX box, have So per you foot square on junior square alone replacement vertical is cost $XXX foot. the a

those And to don't numbers so build. pencil

significant the the we so grow to are any from see located whole today. I of to a interest And boxes mean are looking host ability well that XX% tenants. It's tenants our in and of just existing cost what the that is structures in portfolio execute growth.

an chicken I'll and this about users chicken insatiable pad Tennessee. detail in and sellers, driving restaurants, from The unique. It's chicken isn't give frontage. chicken & is little users white case demand from perpendicular fairly a front out to in sites bit migration maximizing more to a of It's written -- We've really It's C-store freestanding it. for Bed or the format and the them. Bath mall based Memphis, Beyond restaurants road I'll on call the papers

think offer XX,XXX Car We box users we an washes, grow square the a -- use to grow. and square said And looked box of migration It there today so we going operators a it & of all redevelopment portfolio, Beyond to major the and box freestanding down looked know And outside advantage and highest corridor. which honest, to to portfolio, sites marketable. down these We will are mid-single is box foot be Bed Bath to a to continuing I'll opportunities continue aren't box, going and freestanding redevelopment. then we're many are the chicken really includes that of user. conversion sites completion take along the take in other around. grow upon and pad and here and XX,XXX tear operators. to create take expansion the total and And digits There's first lift freestanding the significant lot the isn't of a best of we in XX,XXX be my retail a really from have at the a feet. very and had in my and foot the very The the pad second. both career. freestanding There a wait for here at

from question next [indiscernible] The Baird. comes from

in guidance? the of issue are if what debt? sort is, And anything need is one First assumed plans, I there the to

Thanks, Peter. [indiscernible]. is This

just basis raise the first, on plans think a external execute terms we leverage-neutral year, to million prepared said acquisition without $XXX as in our in funding on needing the remarks, I for of capital. guide can we that any

position of we're the great so remainder the in a for year. And

flexibility We have the plenty in of markets. and terms when access how we of capital

a hedged base in year, which place, future In forward we terms flexible. for be under just can plans an X%. of of issuance swaps the debt We effective at have million starting unsecured have funding rate debt do $XXX of XX-year again,

debt of but be of And nimble we'll afford how and markets, the look to flexible over terms when and swaps use to market. have in can in we accessing year and so a be come we the opportunistic those to to terms

helpful. That's

is Second are I developer have been of those developer bind one or -- those you is increasing. me this the about retailer kind conversations on know, if decreasing? increasing conversations now. kind that talked of or for But curious right merchant Joe, pipeline potential of takeouts? just And

Increasing. We've that can that members. together are projects We for module increasing. to trying to of We've added terms an team. team multiple work. ARC day launched They're piece daily, team They built times per out that team. in that

-- through relative and it's premium that the term the duration really so figuring that acquisition. the just or for retail work the to returns And rent and/or standard retailer, for per and/or output the require square a premium foot, we're to they're shifting going credit developer the out where

mentioned direct having company any one retailers not one retailers, with know to the with Is more so And it. on developers, conversations some go but meet that? Got me. you're but more about the I directly? last color for any about you for expansion,

with a in rollout, standard as DFP. frequently, big on solution very a a with us those working whether or stepping retailers along coming for it's and in are focus Yes.

from Jefferies. Tsai Linda from comes question next The

high I $XXX the year, AFFO and of end you're per the in baking share what million volumes? does know confident but about low acquisitions for guidance this acquisition

would favorable of the other in $XXX we the of -- the our assumes So million range that end end the more result share acquisition assuming inputs ranges, sorry, to less favorable guided the the volume, guidance approximately share guide those being in that we're about the At hitting $XXX AFFO high guidance to million. high per closer end the per range. will closer of of But I AFFO end. of think look acquisitions. And low share the release. in earnings acquisition we'd the ranges range, approximately When to per end us low I terms or AFFO of obviously, to those be end

early, this the next That's to we look to to I assume be G&A, know year? out X.X% helpful. of little would but X% it's run And a rate reasonable a as

first, think I continued Well, we've scale. to

has So the has standpoint. scale. much next but as efficient assume to that revenue, that's Obviously, this driven a you'll investment company I well. continued standpoint, which year, by to volumes, continued percentage a more become subject see of as would from process a G&A from scale technology is revenues

be so piece, And to number, number scale. Peter? denominator moving The see revenue you'll I that biggest the think, continue there, the will

some for And more just context. Yes. Linda, That's correct.

roughly ago, look X%. of as you percent revenue If was X back a years G&A

continue expect year, so to forward. roughly scale this basis points XXX going just the seen, on last that years we'll based X And see scale here we've guide in and our of

I Dollar on XX boxes, the And you'll as those Family have [indiscernible]. what's you expect you those know IRR release [indiscernible]. And

yet be all termination into net and subleasing looked a nets going whether at with is over take of far haven't disposition half on that, the a resolution. to We haven't X I is or for We we hook as rent of that them. or we're a mentioned, will almost on is yet. for But we average Tree case and tenant. feel the new inquiries lease the would weighted -- for already. direct got There Dollar term that years Dollar base The no enter themselves them of lease fee Tree

think, all working be but So is hot that, we'll pretty off this this quarter. press, fresh, would I the through

One last question.

Why of is now emphasized to Is right asset the there? couple You it Florida a time sell times. or state-specific?

State capital, specific, it It's capital, the add which activity, State. of the day disproportionate walk from of is it's a a up. well. international Florida profile muted, buyer new just we But closing attracted of if seems as to California. we're be career, time frankly, my it. stories, seems the very a the sales, the Sunshine is they nonrefundable Florida some with all happy really even private amount come know, to closing XXXX on buyer in don't couple the the first of a as on a in away million table, $XX,XXX we to deposit mean I before dollar had that sale

But seems here it's to again be it. rates to -- So at cap assets of very outlier opportunistically continue we'll interesting, but to of recycle activity. an these XXXX Florida dispose then look and

I activity it -- it's what years. -- mention is been fractional past fractional in of will Now it's overall XXXX is

opportunistic. will prudently we're actively it. the disposition Half is out all don't team through under but this and them we're so close. terminate, of They it, pursuing working built Nicole, we've and And

St. the from And question next comes Haendel

at Mizuho. Juste

backfilling Lots. Joey, Big bit a talk about the for can you little the economics behind

on just I'm different required, Linda just O'Reilly's -- the be how And I and Lots else new but question informative rent or capital stores, versus the and stores asked of anything about term, lease maybe color was filled it think the the that could are in-place the dollar Big relevant dollar box curious sizes re-leasing within there? a know I the that was spreads. some

share XXX% rents. Both X escalators. Big only well more you as We're -- again, with -- of we Fresenius escalators. to given the can seeing the put leases, XXX% or O'Reilly sorry, amenable environment. with the former both the are thing leases I Obviously, the tenants as Yes. leases, The Lots long-term inflationary

a I is landlord De flat misnomer that false. store. operators These there's that that going hub again, think leases to minimis leases is are be a been wrong. work, this have patently investment-grade proved

the body shops hub other retail stores, well a we And for as well have but are distribution a these few commercial as locations as so and storefront. other

a XX,XXX So that. to I a larger was X,XXX dollar we're was excited to generally. stores range it probably The so XX,XXX Obviously, significant feet box, box. if feet, That upgrade. recall, about add from

Lots. than so And boxes they're smaller the Big

say would former the Lots. I such prospective as And the box so junior the pool just tenant than marketability of from them is very different, a Big

leaseback. saying the That's thought on, have go debt think have helpful. better you're these with side. alternatives on were on cost And commentary Appreciate I I don't activity guys wanted back it. I quickly less you still here, lot a fairly would that earlier sale-leaseback than expecting to high of the sale that

So maybe on you're seeing hearing on or that some be helpful. more color what front would

former we're rated have strong higher. leaders. talking of leasebacks. sale [indiscernible], BBB on potential sophisticated Most counterparties balance industry them Well, extremely of to sheets, They're and counterparties operators or

sale and lower balance hope make doesn't and have just It's a to leaseback sheet on go economic enter into them they for the liquidity a sense, that profile rates. For spread today to issue over can where they simple.

are think all out And today, honestly, better of trade knowing better for -- holding would them, rates I where pricing. so cap for

we to with number I'm And sale-leaseback want and the them year commented in continue. We've to publicly the sure retailers discussions they're really so about last in They a clear market. going activity. the calls to on transacted on leaseback earnings of But front. pricing not sale that today's had ready with stomach is reality, their

a wait see. and it's so game And of

piece hold important unless most the sheet thing. again, solutions. for capital doing the the of Some overall tenants term on we'll their money. small winds and at the long So need change." That's don't others And we're stack. unless the saying, balance getting their a leasebacks are full something for -- looking are We're with that "Hey,

favorable, so And is a exercise It going If terms anything. it's of terms secondary exercise almost sourcing CapEx. for it's in not they're do to secondary of in them. not capital a

Thank you.

have further back will the over closing questions. We call no I turn for comments.

Appreciate upcoming forward joining We it. everyone's look seeing the for everybody, us this conferences. Thank to you in morning. you. time you, thank and appreciate Well,

this disconnect Ladies We today. conference you. please thank that we Thank lines. participating, for your your and call for gentlemen, ask and you concludes you