AFFO Per Share ($USD)

FY 2025

$4.26 to $4.30 " "

$4.27 to $4.30 " "

raised

Investment Volume ($USD)

FY 2025

$1.1 billion to $1.3 billion " "

$1.3 billion to $1.5 billion "

raised

Credit Loss Assumption (%)

FY 2025

50 basis points "

50 basis points "

no change

Commercial Paper Program Borrowing Cost (%)

FY 2025

no prior guidance

40+ basis points inside revolver cost "

no prior guidance

General and Administrative (G&A) Expenses

FY 2025

G&A guided as a percentage of adjusted revenue, including both cash and noncash components. Noncash G&A growth driven by changes in stock vesting periods. "

Included in forecast "

no change

Dispositions

FY 2025

Dispositions expected to focus on non-core assets or properties valued higher by others, but not a necessary source of capital due to $2 billion in liquidity at year-end. "

Minimal contribution expected "

no change

Strong Balance Sheet and Liquidity

Emphasized a robust liquidity position with over $2 billion in liquidity, a large forward equity of $920 million, upsized credit facilities, and the ability to maintain a “fortress balance sheet”. " "

Continued focus with $1.9 billion in liquidity, over $1.2 billion of hedged capital, new initiatives such as a $625 million commercial paper program, and further reinforcement of the “fortress balance sheet” strategy. " " "

Consistent emphasis on financial stability. Although the liquidity numbers differ slightly, the overall narrative remains bullish with adjusted liquidity composition through hedging and new capital programs.

Robust Investment Pipeline and Acquisition Opportunities

Outlined a conservative guidance for 2025 at $1.1–$1.3 billion with significant 2024 acquisition activity (e.g., $951 million in transactions), and highlighted a well-established acquisition platform focused on quality assets. " "

Raised guidance to $1.3–$1.5 billion, with active execution (e.g., $375 million in acquisitions across 69 properties) and a diversified approach across multiple asset types and platforms, signaling increased confidence. " "

Enhanced pipeline and acquisition activity with a higher investment range and more aggressive execution, reflecting a positive shift in sentiment toward growth opportunities.

Credit Loss Risk and Tenant Quality Concerns

Provided guidance assuming 50 basis points of credit loss for 2025 versus an actual 35 basis points in 2024; highlighted monitoring of tenants such as Big Lots, Party City, and movie theaters to manage exposure. " " "

Reported 30 basis points of credit loss in Q1 2025, maintained the 50 bps forward guidance, and continued active monitoring (e.g., keeping one movie theater on the watch list, addressing Big Lots challenges). " " " "

Steady risk management with minor improvements in credit loss performance and a consistent, cautious approach to tenant quality. The sentiment remains measured with proactive monitoring and risk mitigation.

Market Volatility and Cap Rate Uncertainty

Discussed the volatile 10-year Treasury yields (often fluctuating between 4.25% and 4.75%), noting that despite market fluctuations, seller pricing expectations and individual asset distress events require careful capital deployment. "

Reiterated the impact of treasury yield volatility (with swings of 10-15% and rates between 4.2% and 4.6%) but framed decisions around the “fear-greed spectrum,” emphasizing that such volatility does not materially affect cap rates thanks to hedging and a stable pipeline. " " "

Consistent recognition of market volatility with a shift toward an opportunistic tone. While the underlying uncertainty remains, the company emphasizes its ability to leverage its strong balance sheet and hedged positions to neutralize the impact on acquisition targets and pricing.

Treasury Stock Dilution Risk

Addressed the potential dilutive impact of outstanding forward equity, estimating an effect of roughly $0.01–$0.02 on full-year AFFO per share, with mitigation through balance sheet protection and hedging strategies. " "

Continued discussion on dilution risk due to forward equity, noting an expected impact of about $0.02 on AFFO per share, with similar hedging measures in place to manage variability. " " "

Continued focus on managing dilution risk with consistent low-level impact on AFFO guidance. Though not a major concern, it remains a key component of the overall conservative financial strategy.

Emerging Exposure to the Auto Parts Sector

Introduced initial exposure through the acquisition of a portfolio (including a material exposure to NAPA Genuine) and highlighted strong positions with top tenants like O’Reilly and AutoZone, underpinning a favorable sector thesis. "

Emphasized accelerated growth in the auto parts space due to market forces such as tariffs that increase vehicle maintenance demand; further highlighted growth in tire and auto service segments with continued targeted investments. " " "

Increased emphasis and positive sentiment toward the sector with more aggressive positioning and clear market drivers, indicating a strategic focus that could have a large future impact.

Challenges in Retail Expansion Amid Macroeconomic Headwinds

Focused on liquidity constraints, elevated construction costs, labor shortages, immigration policy issues, and competition driven by sellers’ pricing expectations as challenges hindering retail expansion. " " " "

Acknowledged macroeconomic volatility but shifted the focus to resilience, noting that despite headwinds, active retailer expansion continues and a strong balance sheet enables capitalizing on growth opportunities. " " " "

Shift in sentiment from emphasizing constraints to highlighting resilience and opportunity. The narrative now reflects optimism in overcoming external challenges, supporting a bullish outlook for future retail expansion.