Total Revenue

365% increase YoY, from $109.3 million to $507.76 million " "

A dramatic increase driven by an aggressive expansion of the company’s real estate investment portfolio and acquisition activity. Similar to the Q1 trend where rental revenue and interest on loans boosted revenues through increased property acquisitions and rent escalations, Q2 2025 shows that these initiatives have scaled substantially. " " " "

Texas Revenue

15% increase YoY, from $53.1 million to $61.26 million " "

A moderate growth likely stemming from continued portfolio enhancements in Texas through new property acquisitions and rent escalations. This performance reflects the overall upward trend in rental revenue seen in previous periods and indicates steady geographic expansion. " "

Florida Revenue

35% increase YoY, from $26.8 million to $36.28 million " "

A robust surge that suggests accelerated growth in its Florida market, driven by effective portfolio expansion and an emphasis on realizing higher rent escalations. Although detailed state-specific drivers are not provided, this outcome builds on the company’s overall strategy evident in past successes of rental revenue increases. " "

Ohio Revenue

27% increase YoY, from $22.2 million to $28.13 million " "

An increase in Ohio revenue consistent with the company’s overall growth in rental revenue and property acquisitions. The momentum from previous periods, which saw improvements due to lease escalations and strategic asset acquisitions, appears to be extending into the Ohio market. " " "

AFFO Per Share

FY 2025

$1.85 to $1.89, over 7% growth " " "

$1.86 to $1.89, 8% growth " "

raised

Investment Guidance

FY 2025

$900 million to $1.1 billion " "

$1,000,000,000 to $1,200,000,000 " "

raised

Robust Investment Pipeline

In Q1 2025, the pipeline was strong with investments of $308 million across 21 transactions at attractive yields and consistent pricing. " " In Q4 2024, the call emphasized a robust pipeline driven by M&A activity and new unit expansion, with favorable cap rates in the mid‐ to high 7% range. " " Q3 2024 reiterated strong pipeline signals with consistent deal flow and stable acquisition guidance. " "

Q2 2025 highlighted an “exceptional” investment market with $642 million invested in H1, increased guidance to a range of $1 billion to $1.2 billion, and a focus on middle-market sale-leasebacks. " " " " "

The message remains consistently positive and strong, with further expansion in guidance and a continued focus on leveraging favorable market conditions. " " " " "

Repeat Business

Q1 2025 noted that 86% of investments originated from existing tenant relationships. " " Q4 2024 reported repeat business driving roughly 79-80% of transactions. " " In Q3 2024, similar levels (approximately 79-80%) were observed. " "

Q2 2025 stressed that 88% of its $334 million investment activity was from existing relationships, underscoring the value of recurring business. " "

Repeat business has been a consistent strength and is trending upward slightly, reinforcing the relationship‐driven approach. " " " "

Strong Liquidity and Capital Structure

Q1 2025 described a liquidity position of $1.5 billion and pro forma leverage of 3.4x. " " Q4 2024 reported liquidity of $1.4 billion and a net debt to EBITDA of 3.8x. " " Q3 2024 mentioned liquidity of $1.2 billion with leverage at around 3.5x. " "

Q2 2025 reported liquidity of $1.3 billion, pro forma leverage of 3.5x, and noted recent capital raising activities to support a well-capitalized balance sheet. " " "

Liquidity and capital structure remain a cornerstone with slight variations; the overall strong balance sheet is consistently maintained. " " " "

Tenant Quality and Credit Profile

Q1 2025 showed healthy credit trends with a 3.5x weighted average unit-level rent coverage and 99.7% occupancy. " " " Q4 2024 noted similar coverage at 3.5x, de minimis credit events and strong collections. " " Q3 2024 reported a 3.6x coverage ratio and a very low watch list percentage. " " "

Q2 2025 described tenant credit trends as healthy with a coverage ratio of 3.4x, 99.6% occupancy, and no significant credit events. " " "

Tenant quality is consistently strong with a very stable credit profile; minor differences in ratios do not alter the positive overall sentiment. " " " "

Competition and Cap Rate Compression Risks

Q1 2025 highlighted relatively low competition in smaller transactions and noted that cap rate compression was expected as markets normalized. " " " Q4 2024 mentioned increased competition driving modest cap rate compression, with initial cap rates dropping and lease term adjustments. " " " In Q3 2024, although compression was anticipated, tangible impacts were not yet observed. " " "

Q2 2025 acknowledged that while competition may eventually lead to cap rate compression, it has not yet materially impacted their transactions, and attractive yield levels (around 9.7%) continue to prevail. " " " " "

There is a cautious tone with increasing attention to potential risks as the capital markets normalize, though current transactions remain favorably insulated. " " " "

Limited Pipeline Visibility

Q1 2025 described pipeline visibility as limited to 60–90 days. " Q4 2024 reiterated the constraint with a 60–90 day outlook. " Q3 2024 confirmed that visibility rarely extends beyond 90 days. "

Q2 2025 similarly reported that they have no more than 90 days of visibility, leading to a conservative approach in guidance. " "

Limited pipeline visibility has been a persistent and consistent operational constraint, driving a conservative investment volume forecast. " " "

Dilution Risk and Forward Equity Concerns

Q1 2025 discussed modest dilution with forward equity adding around 1.1 million shares to the diluted count and a minimal AFFO headwind. " " Q4 2024 mentioned a similar situation with an adjustment of 3.2 million shares and roughly $0.01 per share impact. " " Q3 2024 reported minimal dilution with a 2.7 million share adjustment leading to an estimated $0.01 headwind. " "

Q2 2025 noted that forward equity settlements contributed a modest headwind of approximately $0.01 per share to AFFO, with no immediate need for additional equity issuance. "

Management consistently minimizes dilution risk; forward equity impacts are modest and remain well-controlled, keeping the effect on AFFO minimal. " " "

Economic Slowdown and Macroeconomic Risks

Q1 2025 emphasized that its service- and experience-based tenants, with 3.5x rent coverage, were well positioned to withstand economic pressures. " Q4 2024 indirectly touched on inflation and cost pressures with mixed signals. " Q3 2024 did not specifically address macroeconomic risks [N/A].

Q2 2025 acknowledged a volatile macroeconomic backdrop while noting that the portfolio’s stability—through healthy tenant credit and consistent rent collections—remains resilient. " " "

There is a cautiously optimistic outlook; while macro risks are acknowledged periodically, the emphasis remains on portfolio resilience and sound tenant fundamentals. " "

Industry-Specific Exposure

Q1 2025 focused on managing car wash exposure (reported at 13.9% of ABR), a light casual dining position, and near-zero exposure to building supplies. " " Q4 2024 provided detailed exposure metrics for car washes and casual dining while reducing overall car wash exposure toward their soft ceiling. " " " Q3 2024 discussed diversified exposures, including volatility in building supplies and nuanced restaurant dynamics. " " "

Q2 2025 highlighted ongoing acquisitions in the car wash space (including a portfolio purchase) and diversified investments in industrial and restaurant sectors, maintaining consistent industry balance. " " "

Industry exposure management continues to evolve as the company fine-tunes its mix; proactive adjustments and diversification remain central to its strategy. " "

Rising Operational and G&A Expenses

Q1 2025 reported total G&A expenses of $11.5 million (5.9% of revenue) due to increased compensation. " Q4 2024 showed a smaller absolute increase to $8.5 million with improved recurring cash efficiency at 4.8% of revenue. " Q3 2024 indicated rising expenses driven by team expansion, yet efficiency gains helped maintain competitive percentages. " "

Q2 2025 saw total G&A expenses rise to $10.7 million versus $8.7 million in the prior period, with recurring cash G&A representing 5.2% of revenue, in line with budgeted expectations despite higher absolute costs. "

While absolute expenses are rising due to growth and expanded teams, operational leverage is improving as a percentage of revenue, reflecting positive scaling dynamics. " " "

Middle-Market Sale-Leaseback Opportunities

Q1 2025 emphasized a strong focus with about 90% of transactions being sale-leasebacks, driven by existing tenant relationships. " " " " Q4 2024 maintained this focus to provide growth capital to middle-market operators while stressing tenant diversity. " " Q3 2024 reiterated that sale-leaseback transactions represented roughly 89% of deals, driven by favorable market conditions. " "

Q2 2025 continued to stress a strong commitment to middle-market sale-leasebacks with high repeat business levels (88%), confirming this as a core element of its investment strategy. " "

The sale-leaseback strategy remains a stable, cornerstone approach with consistent market strength and recurring business supporting long-term growth. " " "