Total Revenue Q1 2024

+18% " "

Revenue grew significantly by expanding the real estate portfolio from $6.01B (1,908 properties; 40.1M sqft GLA) to $6.82B (2,161 properties; 44.9M sqft GLA), driven by acquisitions of 31 retail net lease assets worth $128.3M and the initiation/completion of multiple development projects, boosting rental income. " "

Total Revenue Q1 2025

+13% " "

The further expansion of the portfolio—from $6.82B (2,161 properties; 44.9M sqft) to $7.70B (2,422 properties; 50.3M sqft) — propelled revenues, as rental income grew from $149.4M to $169.1M; this reflects continued property acquisitions and incremental revenue recognition from past investments, though some effects will materialize later. " "

AFFO Per Share ($USD)

FY 2025

$4.27 to $4.30 " "

$4.29 to $4.32 " "

raised

Investment Volume ($USD)

FY 2025

$1.3 billion to $1.5 billion "

$1.4 billion to $1.6 billion "

raised

Credit Loss Assumption (%)

FY 2025

50 basis points "

25 basis points at the high end and 50 basis points at the low end "

lowered

Investment Pipeline and Acquisition Activity

In Q1 2025, the company raised its 2025 guidance to $1.3–$1.5 billion and emphasized a robust pipeline with a focus on acquisitions across several platforms. " " In Q4 2024, guidance was set at $1.1–$1.3 billion with strong acquisition activity and disciplined capital allocation. " "

Q2 2025 guidance was increased further to $1.4–$1.6 billion, with the company reporting over $350 million in quarterly investments and notable high-quality acquisitions, along with an active pipeline including upcoming developments. " " "

There is an upward progression in both guidance and actual acquisition volume, signaling increased market confidence and an expanding pipeline.

Strong Capital Structure and Liquidity

In Q1 2025, liquidity was reported at $1.9 billion with a focus on hedged capital, a new commercial paper program, and a robust balance sheet. " " In Q4 2024, over $2 billion in liquidity, enhanced by significant forward equity and an expanded credit facility, was highlighted. " "

In Q2 2025, the liquidity position strengthened to $2.3 billion with substantial capital raises including $800 million in Q2, improved net debt metrics, and a successful $400 million bond offering, reinforcing its robust capital structure. " " "

The capital structure further solidified over time, with liquidity and access to capital improving steadily. This ongoing strength supports growth initiatives and enhances financial flexibility.

Credit Risk and Credit Losses

In Q1 2025, the company reported experiencing around 30 basis points of credit loss against a conservative 50 basis point guidance, with careful monitoring of exposures (e.g. Big Lots). " " In Q4 2024, guidance for 2025 increased to 50 basis points due largely to the Big Lots bankruptcy-related concerns. "

In Q2 2025, realized credit loss was at the lower end (approximately 25 basis points) with improved performance from tenant re-leasing efforts and continued minimal credit issues, even as they remain mindful of potential tariff impacts. "

Credit loss performance shows improvement in Q2, with losses realized at the lower end of guidance, indicating effective credit risk management compared to earlier periods which had higher allowances.

Macroeconomic and Capital Market Uncertainties

Q1 2025 discussions acknowledged a volatile macroeconomic environment while leveraging robust balance sheet metrics and proactive capital market activities. " " In Q4 2024, the company detailed challenges such as higher interest rates, inflation pressures on low-income consumers, and strategic positioning amid reduced competition. " "

In Q2 2025, despite deteriorating consumer sentiment and tariff concerns, the company noted record-high retailer demand for brick-and-mortar outlets and maintained strong liquidity and capital market activity to support its strategic investments. " " "

While macroeconomic uncertainties persist, the company’s strong financial positioning and record retailer demand have allowed it to remain opportunistic, reflecting a balanced yet positive approach amidst market volatility.

Operational Efficiencies through Technological Advancements

There was no mention of technological advancements such as AI or ARC 3.0 in either Q1 2025 or Q4 2024 [N/A].

Q2 2025 introduced significant operational innovations including the use of AI for lease abstraction and underwriting—saving hundreds of hours and substantial cost savings—and announced the development of ARC 3.0 for enhanced self-service and dynamic reporting. " "

This is a new topic in Q2 2025 that reflects a strategic pivot towards technological innovation, promising increased efficiency and cost reduction.

Margin Compression on Development Projects

In Q1 2025, management noted that while tariffs might push construction costs by 2%–5%, there was no material impact on yields. In Q4 2024, capital was deployed cautiously only when returns justified the risk, especially for shorter project durations. " "

Q2 2025 provided a more detailed analysis with explicit benchmarks: retrofit projects yield spreads about 50 basis points wider, while longer projects can yield up to 150 basis points, and noted that tariffs only marginally contribute (around 1.5% of total costs) given adequate contingencies. " " "

An increased focus in Q2 2025 on detailing yield spreads and mitigating tariff impacts indicates a more nuanced approach to managing margin pressures on development projects while maintaining acceptable returns.

Treasury Stock Dilution Risk

In Q1 2025, dilution from forward equity was estimated to reduce AFFO per share by roughly $0.02, with proactive measures in place. " " In Q4 2024, similar dilution estimates of $0.01–$0.02 were provided, along with an emphasis on its accounting nature rather than a cash impact. " "

Q2 2025 reported treasury stock method dilution impacting AFFO by about $0.01, showing a modest improvement from Q1, though caution remains if stock prices rise significantly. "

While the threat of dilution remains, there is evidence of slight improvement and effective management, keeping the dilution risk relatively stable and within anticipated ranges.

Resilient Tenant Portfolio and Retailer Demand

Q1 2025 reported a portfolio of 2,420 properties with 200 ground leases, solid occupancy at 99.2% and strong demand driven by necessity-based retailers. " " In Q4 2024, the portfolio was slightly smaller at 2,370 properties but maintained strong occupancy (99.6%) with a diversified tenant mix and healthy retailer expansion. " "

Q2 2025 featured further expansion to over 2,500 properties, occupancy rebounding to 99.6% post re-tenanting, and highlighted the highest level of retailer demand for new physical locations since the financial crisis. " " "

Consistent strength in tenant quality and occupancy is observed, with growing retailer demand and an expanding portfolio, underscoring the defensive and resilient nature of the company’s asset base.

Auto Parts Sector Exposure

In Q1 2025, there was mention of accelerated exposure in the auto parts sector due to tariff pressures and its resilient characteristics. " In Q4 2024, exposure increased by 70 basis points with a strong investment thesis based on vehicle age and favorable real estate attributes for auto parts stores. "

In Q2 2025, the company reiterated its confidence in the auto parts sector, executing a sale-leaseback transaction with a leading tenant and maintaining current exposure levels without plans for significant expansion. " "

The auto parts sector continues to be a robust component of the portfolio with consistent positive sentiment; while exposure remains steady, the company remains cautious about additional expansion despite a positive outlook.