Telsey Hyde

Telsey Hyde asked how the recent dividend increase impacts the company's capital recycling strategy and the future use of disposition proceeds, particularly concerning share repurchases. She also sought clarification on the accounting for FPI Loan Program renewals, specifically whether the entire balloon payment (principal and interest) is repackaged and extended, or if interest is collected separately with only the principal being extended.

Answer

Executive Chairman Paul Pittman stated that share repurchases are expected to decline as the stock price appreciates and the gap to breakup value narrows. He clarified that the dividend increase is driven by increased AFFO, reducing the need for special dividends for tax compliance, rather than being based on unpredictable asset sales. Regarding the FPI Loan Program, Mr. Pittman explained that they typically collect interest along the way, and it is the principal that is extended, not the capitalization of interest, as that is not their ordinary course of business.

Telsey Hyde from Raymond James asked about the company's capital recycling strategy and the use of disposition proceeds following the dividend increase, specifically concerning future share repurchases. She also sought clarification on the accounting and contract terms for FPI Loan Program renewals, particularly whether interest is collected or capitalized when principal payments are extended.

Answer

Executive Chairman Paul Pittman explained that share repurchases are likely to decline as the stock price appreciates and the gap to liquidation value narrows. He clarified that the regular dividend increase is driven by increased AFFO, not asset sales, which typically drive special dividends. Regarding the FPI Loan Program, Pittman stated that interest is usually collected along the way, and only the principal is extended, with the company generally not capitalizing interest.