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President and CEO Joey Agree stated that they are primarily taking share from third-party developers who are capital-constrained, not from retailers' internal development teams. He confirmed that the company has approached nearly all of its retail partners, and that securing these development deals is often a matter of timing and demonstrating their unique value proposition as a well-capitalized, expert partner.

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CEO Joey Agree responded that the robust investment pipeline is a result of 'all of the above'—deepening existing relationships, forming new partnerships, and the team's extensive market coverage. He also clarified that the weighted average lease term for ground leases, like the rest of the portfolio, is calculated exclusive of any tenant renewal options.

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CEO Joey Agree responded that the increased investment activity is driven by 'all of the above,' including existing relationships, new partners, and the broad market coverage of the team, positioning Agree as the 'go-to buyer' for high-quality net lease retail. He also clarified that the weighted average lease term (WALT) for ground leases, like the rest of the portfolio, is calculated exclusive of tenant renewal options.

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Robert Probst, Executive VP & CFO, estimated the historical high occupancy for the MOB portfolio was around 93-94% and views the current level as an opportunity to reach a structural maximum of about 95%. He stated that annual rent escalators on new deals were approximately 3% for the quarter, with the overall portfolio average slightly lower at around 2.8% to 2.9%.

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EVP & Chief Investment Officer J. Hutchens explained the operating leverage, noting a 50% incremental margin is typical when moving from 80% to 90% occupancy, and 70% from 90% to 100%. He confirmed Canada's portfolio is still growing occupancy and RevPOR even at 97% but will likely moderate to single-digit growth. CEO Debra A. Cafaro highlighted that two-thirds of the portfolio has significant occupancy upside.

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J. Hutchens confirmed the case study included a diverse mix of operators and asset types. He noted that the sector's penetration rate is 11%, back to pre-pandemic levels, and that significant growth is achievable without a major increase in this rate due to powerful demographic tailwinds.

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CEO Jason Fox responded that while still anecdotal, there has been an increase in inbound conversations from tenants about build-to-suits and expansions to add capacity. He views this trend as a potential long-term tailwind for their industrial portfolio, though the ultimate impact remains to be seen given the uncertainty around long-term policy decisions.

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CEO Jason Fox responded that while anecdotal, there has been an increase in inbound conversations about build-to-suits and expansions to add capacity, which he views as a potential long-term tailwind. He noted that while it's too early to determine the full impact due to the long-term nature of these decisions and tariff uncertainty, he believes it will ultimately benefit their industrial and manufacturing portfolio.

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CEO Jason Fox confirmed that they have. While CPI-linked escalators are harder to secure in the U.S., the company has successfully pushed for higher fixed rent bumps. He noted that the average fixed increase on year-to-date deals is 2.8%, which is significantly higher than the historical average of around 2%.

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Head of Asset Management Brooks Gordon confirmed that W. P. Carey receives financial reports from materially all tenants, typically on a quarterly and annual basis. He explained that while the rigorous internal credit review process has always been in place, the company has recently enhanced its public disclosures by expanding its top tenant list and providing a specific, all-inclusive credit reserve figure in its guidance.

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CFO ToniAnn Sanzone projected that contractual same-store rent growth would stabilize in the low-to-mid 2% range. CEO Jason Fox added that rent escalators on retail deals are typically lower, around 2%, compared to the roughly 3% achieved on recent industrial deals. He emphasized that the company weighs this trade-off between initial yield and long-term growth in its underwriting.

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CIO Brendan Mullinix confirmed that while additional redevelopment opportunities exist in the portfolio, the company is not quantifying them at this time. EVP James Dudley added that while some landlords are cutting rents, it is typically for assets with functional or locational issues; for quality assets, rents are holding firm, with softness appearing in concessions like free rent and TI allowances.

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CFO Nathan Brunner noted Nissan's public commitment to its U.S. plants, which are critical to its sales. Executive Vice President James Dudley elaborated that the warehouses are directly tied to manufacturing plants, with one connected by a private road. He confirmed Nissan has co-invested millions to bring suppliers in-house at the Nashville facility and is considering similar investments in Canton. Given the low in-place rents and the facilities' integration, he believes there is a very high probability of renewal.

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Chairman and CEO T. Wilson Eglin confirmed that the low end of guidance assumes no leasing of the three large vacant boxes, while the high end assumes they are leased in the second half of 2025. CFO Beth Boulerice identified the main headwinds as higher net interest expense of over $0.01 per share due to a bond refi and a term loan swap step-up, and a reduction in capitalized interest of about $0.01 per share following the completion of development projects.

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Brendan Mullinix, CIO, explained that a handful of assets in markets like Kansas City, Philadelphia, and St. Louis could be monetized opportunistically, driven by attractive capital redeployment options. Regarding the trust preferreds, he noted their value comes from being long-dated and covenant-light, and that a portion was left floating due to ongoing discussions about potentially retiring them at a discount to par.

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Vice Chairman & COO John Burkart confirmed a 'tremendous opportunity' for redevelopment within the portfolio, focusing on improving well-located assets with good infrastructure to create 'like new' experiences. However, CEO Shankh Mitra clarified that this strategy applies to improving good assets, stating you cannot fundamentally turn a 'C' asset into an 'A' asset if the 'bones' of the property are not good.

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CEO Shankh Mitra clarified that Welltower's international focus is exclusively on the U.K. and Canada. He stated the company has 'no desire' to expand beyond its 'circle of competence,' which does not include continental Europe.

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Shankh Mitra (CEO & CIO) explained that the non-same-store portfolio should grow faster due to its lower starting occupancy, as Welltower is acquiring assets at 40-60% occupancy. Tim McHugh (EVP & CFO) added that a heavy period of development deliveries also impacts total portfolio metrics, but margins should converge over time.

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Marc Binda, CFO & Treasurer, pointed to 10-Q disclosures, estimating that capitalized operating expenses and overhead are approximately 3% of the asset basis being capitalized. He also confirmed that a portion of the $3 billion pipeline is already being evaluated for sale, and a 'no-go' decision could certainly result in a disposition.

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CFO Marc Binda confirmed the annualized math but cautioned that it's difficult to predict for 2026 as construction could resume. SVP Hallie Kuhn explained that while some manufacturing is distinct, advanced manufacturing like cell and gene therapies requires an R&D-adjacent talent base, which can stimulate R&D demand in those clusters.

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Executive Joel Marcus responded that leasing activity is highly case-specific and difficult to generalize. CFO Marc Binda noted that construction spending has been declining but stated it was too early to forecast if 2025 dispositions would be a peak.

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Executive Joel Marcus identified demand as coming primarily from early-stage companies and clinical-stage companies with positive news. He clarified that since Alexandria does not lease clinical trial space, AI-driven efficiencies in trials would be a net positive, as it would increase the pipeline of drugs requiring R&D lab space, thereby boosting demand.

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CEO William Lenehan responded that the company is exploring how AI can improve efficiency and has significantly built up its asset management group with new hires. He emphasized that the growing team will leverage existing technology, highlighting Dealpath as an integral tool. Lenehan noted there is still much that can be done with their current technology and offered to provide investors with a detailed walkthrough of their underwriting process within Dealpath.

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CEO William Lenehan stated that rent recovery has been 'really positive,' with FCPT basically recovering prior rents, though he cautioned this is based on a small sample size. Regarding deal sourcing, he explained that most transactions are not part of a formal, wide bidding process. Instead, they are typically relationship-based, where a deal is agreed upon at an attractive price before any formal marketing occurs.

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CEO William Lenehan responded that lease terms, including escalators (typically 1.5% annually) and extension options, have remained remarkably consistent and have not become a significant point of negotiation. He noted that while it's a good question, the structure of net leases has not changed much. Lenehan added that instances of more landlord-favorable terms are often tied to tenants with credit profiles that FCPT would prefer to avoid.

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CEO Peter Mavoides stated that the locations all have operating history, varying from roughly 3 to 10 years, and are cash-flowing with master lease coverage north of 2x. He also explained that the company is agnostic to the source of a tenant's equity (public vs. private), as credit is credit. He noted that public credits can create more 'noise' that doesn't necessarily correlate to risk and it is not a major factor in their investment calculus.

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CEO Peter Mavoides clarified the coverage change was industry-specific, driven by volatility in high-coverage sectors like building supply, rather than a portfolio-wide issue. He views the 7-Eleven sale as a company-specific capital allocation move, not a negative indicator for the C-store industry, where Essential Properties continues to find growth opportunities with its partners.

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CFO David Kieske indicated that while guidance excludes refinancing assumptions, the current market suggests a spread of 120-125 basis points over the 10-year Treasury for a new 10-year bond, implying a rate in the mid-5% range. CEO Ed Pitoniak mentioned having very preliminary chats with Todd Boehly about Chelsea F.C.'s stadium vision but noted they were not substantive at this stage.

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CEO Edward Pitoniak acknowledged that while VICI has many lending opportunities, the week-to-week market uncertainty makes it challenging for both VICI and potential borrowers to commit to terms. Regarding the quadrant map, Pitoniak stated VICI is currently in the 'upper right' quadrant (good consumer conditions, good REIT capital markets), but emphasized that the company is always focused on the future trajectory and preparing for potential shifts.

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