Agree Realty (ADC) This fall 2024 Earnings Name Transcript

Agree Realty (ADC -2.13%)
This fall 2024 Earnings Name
Feb 12, 2025, 9:00 a.m. ET

Contents:

• Ready Remarks
• Questions and Solutions
• Name Contributors

Ready Remarks:

Operator

Good morning, and welcome to the Agree Realty fourth quarter 2024 convention name. [Operator instructions] After at this time’s presentation, there will likely be a possibility to ask questions. [Operator instructions] Notice this occasion is being recorded. I’d now like to show the convention over to Reuben Treatman, senior director of company finance.

Please go forward, Reuben.

Reuben Treatman — Director, Company Finance

Thanks. Good morning, everybody, and thanks for becoming a member of us for Agree Realty’s fourth quarter 2024 earnings name. Earlier than turning the decision over to Joey and Peter to debate our outcomes for the quarter, let me first run via the cautionary language. Please word that in this name, we’ll make sure statements that could be thought-about forward-looking beneath federal securities legal guidelines, together with statements associated to our 2025 steering.

Our precise outcomes could differ considerably from the issues mentioned in any forward-looking statements for a variety of causes. Please see yesterday’s earnings launch and our SEC filings, together with our newest annual report on Kind 10-Ok for a dialogue of varied dangers and uncertainties underlying our forward-looking statements. As well as, we focus on non-GAAP monetary measures, together with core funds from operations, or core FFO, adjusted funds from operations, or AFFO, and internet debt to recurring EBITDA. Reconciliations of our historic non-GAAP monetary measures to probably the most straight comparable GAAP measures might be present in our earnings launch, web site and SEC filings.

I will now flip the decision over to Joey.

Joel N. Agree — President and Chief Govt Officer

Thanks, Reuben, and thanks all for becoming a member of us this morning. I am more than happy with our efficiency throughout 2024 as we maintained our strategic self-discipline via a 12 months of serious market volatility. Roughly 16 months in the past, we launched our do-nothing state of affairs, demonstrating that even within the absence of circumstances that facilitated exterior progress, we may ship significant AFFO per share progress. We resisted the temptation to maneuver up the danger curve or deviate from our core funding technique.

As an alternative, we stay steadfast in our dedication to investing within the strongest retailers with superior risk-adjusted returns and targeted on our goal of being a valued accomplice to the most important retailers within the nation. Fairly merely, our self-discipline paid off. Because the market shifted, we rapidly capitalized on alternatives and proactively strengthened our fortress steadiness sheet decisively pre-equitizing with $1.1 billion of ahead fairness through the 12 months, together with $423 million within the fourth quarter alone. We concluded 2024 with over $2 billion of liquidity, together with $920 million of excellent ahead fairness.

Paired with no materials debt maturities till 2028, our steadiness sheet administration philosophy has put us in an amazing place to execute. As we enter 2025, we discover ourselves as soon as once more navigating a risky increased rate of interest setting. This underscores the significance of our disciplined and prudent method to each capital allocation and capital elevating. By proactively fortifying our steadiness sheet final 12 months, we supplied ourselves with ample liquidity to execute on this 12 months’s funding steering with out the necessity for extra fairness capital.

At year-end, leverage stood at simply 3.3 instances professional forma internet debt to recurring EBITDA. We are able to deploy over $1.5 billion this 12 months, whereas staying inside our goal leverage vary of 4 to 5 instances internet debt to EBITDA with out elevating any further fairness. I’d word that we have had a really sturdy January to start out the 12 months and stay extraordinarily assured in our skill to speculate between $1.1 billion and $1.3 billion in 2025, throughout all three exterior progress platforms. It may, actually, transform conservative, and we’re committing to updating the market in common course as we acquire incremental visibility.

This outlook supported by a fortress steadiness sheet and mixed with our best-in-class portfolio, offers us conviction in attaining our AFFO per share steering of $4.26 to $4.30 for the complete 12 months 2025. This represents roughly 3.5% year-over-year progress on the midpoint. I’d word that given our vital ahead fairness place, this contains assumptions for dilution through the treasury inventory file if the inventory continues to commerce within the 70 plus vary. I repeatedly stated that I do not care a few penny or two of earnings in any given 12 months as a result of accounting methodologies, however extra importantly, worth the steadiness sheet flexibility enabled by ahead fairness and different danger mitigation instruments.

Peter will present extra particulars on our steering momentarily. Turning to our three exterior progress platforms, we set out final 12 months to additional improve and deepen {our relationships} with our core retailers. I’m happy to report this effort led by Craig Erlich, our chief progress officer, was successful. At the moment, our retail companions really perceive the worth proposition of partnering with Agree Realty.

We’re a one-stop store for acquisitions, growth, and developer funding options. This distinctive worth proposition is unmatched within the trade. Our personal friends haven’t got the liquidity, price, or entry to capital, whereas our public friends lack the actual property growth and operational capabilities ingrained in our group. For the fourth quarter, we invested roughly $371 million in 127 high-quality retail internet lease properties throughout all three platforms.

This included the acquisition of 98 property for over $341 million. The properties acquired through the quarter are leased to main operators within the auto components, off-price, farm and rule provide, dwelling enchancment, tire and auto service, in addition to crafts and novelty sectors. The fourth quarter marked each the very best quantity and highest high quality quarter of the 12 months, evidenced by the longest weighted common lease time period in addition to the very best funding grade and floor lease proportion of any quarter in 2024. Notable transactions included a Walmart and Dwelling Depot floor lease, in addition to a sale leaseback with a high relationship tenant with which we take pleasure in a really sturdy relationship.

The acquired properties had a weighted common cap fee of seven.3%, and a weighted common lease time period of 12.3 years. Roughly 10.5% of annualized base rents acquired had been derived from floor leased property. Whereas investment-grade retailers accounted for over 73% of the annualized base rents acquired. For the complete 12 months 2024, we invested $951 million in 282 retail internet lease properties, spanning 45 states and 28 retail sectors.

Roughly $867 million of our funding exercise is originated from our acquisition platform. The acquisitions had been accomplished at a weighted common cap fee of seven.5% and had a weighted common lease time period of 10.4 years, with roughly two-thirds of rents coming from investment-grade retailers. As a reminder, we don’t impute credit score rankings for nonrated retailers. Switching to our growth in DFP platforms.

We had a file 12 months with 41 initiatives both accomplished or beneath development, representing roughly $180 million of dedicated capital. We’re persevering with to see elevated exercise throughout each platforms as we work with our retail companions to assist them execute their retailer progress plans and supply struggling builders with liquidity to fund their pipeline. Throughout the fourth quarter, we commenced eight new growth in DFP initiatives with complete anticipated prices of roughly $45 million. The brand new initiatives are with main retailers, together with Aldi, TJ Maxx, and Marshalls, Pastime Foyer, Boot Barn, Sherwin-Williams, and Starbucks.

Building continued through the quarter on 14 initiatives with anticipated prices totaling roughly $67 million. Lastly, we accomplished development on 9 initiatives through the quarter with complete price of $31 million. On the asset administration entrance, we executed new leases, extensions or choices on over 530,000 sq. toes of gross leasable space through the fourth quarter. For the complete 12 months 2024, we executed new leases, extensions or choices on roughly 2 million sq. toes of gross leasable space.

We’re very properly positioned for 2025 with solely 41 leases, or 120 foundation factors of annualized base rents maturing. Throughout the 12 months, we opportunistically disposed of 26 properties for complete gross proceeds of over $98 million, together with eight properties that had been bought through the fourth quarter. The weighted common cap fee for tendencies in 2024 was 6.7%. At year-end, our best-in-class portfolio included 2,370 properties and spans all 50 states.

The portfolio contains 229 floor leases comprising practically 11% of annualized base rents. Our investment-grade publicity at year-end stood at 68.2%, and occupancy remained sturdy at 99.6%. With that, I will hand the decision over to Peter, after which we will open up for questions.

Peter Coughenor — Chief Monetary Officer

Thanks, Joey. Beginning with the steadiness sheet. We had a really energetic 12 months within the capital markets, elevating roughly $1.1 billion of ahead fairness, upsizing our revolving credit score facility to $1.5 billion, and finishing a $450 million bond providing. We additionally entered into $200 million of forward-starting swaps through the 12 months, successfully fixing the bottom fee for a contemplated 10-year unsecured debt issuance at roughly 3.7%.

Mixed with our excellent ahead fairness of $920 million, this offers us with $1.1 billion of hedged capital to fund funding exercise in 2025. Throughout the fourth quarter, we bought 5.8 million shares of ahead fairness through our ATM program and an in a single day providing in October for anticipated internet proceeds of roughly $423 million. We additionally settled 3.7 million shares of ahead fairness for proceeds of over $228 million. As of year-end, we had roughly 12.9 million shares of excellent ahead fairness which, as talked about, are anticipated to lift internet proceeds of $920 million upon settlement.

We’re contractually obligated to settle $12.7 million of these shares in 2025. Moreover, as mentioned on previous calls, we recast and expanded our revolving credit score facility in August. The ability was elevated from $1 billion to $1.25 billion and contains an accordion possibility that enables us to request further lender commitments, as much as a complete of $2 billion. We additionally prolonged the time period of the ability to 2029, together with extension choices, and diminished our borrowing price by 5 foundation factors based mostly on our present credit score rankings and leverage ratio.

As of December 31, we’ve got over $2 billion of liquidity, together with $1.1 billion of availability on our revolving credit score facility, the beforehand talked about excellent ahead fairness, and money readily available. Professional forma for the settlement of our excellent ahead fairness, internet debt to recurring EBITDA was roughly 3.3 instances, which marks the bottom degree in two years. Excluding the affect of unsettled ahead fairness, our internet debt to recurring EBITDA was 4.9 instances. Our complete debt to enterprise worth was roughly 27%, whereas our mounted cost protection ratio, which incorporates principal amortization and the popular dividend, may be very wholesome at 4.4 instances.

Our floating fee publicity stays minimal with $158 million excellent on the revolver at year-end. And as Joey talked about, we’ve got no materials debt maturities till 2028. We’re in wonderful place to execute our funding steering this 12 months with out having to lift any further fairness capital. The energy of our fortress steadiness sheet was additional validated by the credit standing improve we acquired in July.

S&P upgraded our issuer score to BBB+ from BBB, with a steady outlook, which is a testomony to the prudent and disciplined method wherein we proceed to develop the corporate. Transferring to earnings. Core FFO per share was $1.02 for the fourth quarter, and $4.08 for full 12 months 2024, representing 3.5% and three.7% year-over-year will increase respectively. AFFO per share was $1.04 for the fourth quarter, representing a 4.7% year-over-year enhance.

For the complete 12 months, AFFO per share was $4.14, which displays the excessive finish of our steering vary and 4.6% year-over-year progress. As Joey talked about, we issued preliminary AFFO per share steering of $4.26 to $4.30 for full 12 months 2025, representing roughly 3.5% year-over-year progress on the midpoint. We offer parameters on a number of different inputs in our earnings launch, together with funding and disposition quantity, normal and administrative bills, non-reimbursable actual property bills, in addition to earnings tax and different tax bills. Along with these parameters, our earnings steering for 2025 contains anticipated treasury inventory technique dilution associated to our excellent ahead fairness.

As a reminder, if ADC inventory trades above the web worth of our excellent ahead fairness choices, the dilutive affect of unsettled shares should be included in our share depend in accordance with the treasury inventory technique. Supplied that our inventory continues to commerce close to present ranges, we anticipate that treasury inventory technique dilution will have an effect of roughly $0.01 to $0.02 on full 12 months 2025 AFFO per share. That stated, the affect could possibly be increased if our inventory worth strikes materially above present ranges. Our constant and dependable earnings progress continues to assist a rising and well-covered dividend.

Throughout the fourth quarter, we declared month-to-month money dividends of $0.253 per frequent share for every of October, November, and December. The month-to-month dividend equates to an annualized dividend of just about $3.04 per share and represents a 2.4% year-over-year enhance. Our dividend may be very properly lined with a payout ratio of 73% of AFFO per share for the fourth quarter. With that, I might like to show the decision again over to Joey.

Joel N. Agree — President and Chief Govt Officer

Thanks, Peter. Operator, at the moment, let’s open it up for questions.

Questions & Solutions:

Operator

[Operator instructions] First query comes from Ki Bin Kim at Truist Securities. Please go forward.

Ki Bin Kim — Analyst

Thanks. Good morning. Joey, you supplied an attention-grabbing case research on one in every of your floor lease renewals in your presentation. I used to be simply curious, I am positive that is not indicative of their entire floor lease portfolio, however sometimes, when these floor leases come due, I suppose, is it extra of a typical lease renewal the place you get a bit little bit of a bump and that case research was extra of a one-off instance? Or do you suppose there’s a vital mark-to-market upside?

Joel N. Agree — President and Chief Govt Officer

Good morning, Ki Bin, there’s positively vital mark upside there. The case research that you just referred to, the tenant had no remaining choices, initially provided to increase it successfully a five-year possibility at a flat rental fee. We had inbounds north of 180,000 beginning 12 months one. The tenant was about 105, I imagine.

And we advised the tenant, if you wish to keep, you are going to should signal a brand new 15-year floor lease with choices, marking that to market, and that is the reference to the upside that you just’re speaking about. That is indicative of a unadorned lease with no choices within the floor lease area. That is not an everyday prevalence for us. But it surely’s an instance, I feel it is a prime instance, of the upside if and once we had been to retain management of the constructing.

Ki Bin Kim — Analyst

And in your ahead fairness, you have got about $900 million of ahead fairness on the market. I feel once you have a look at it, versus historical past, you are in all probability a bit bit increased than what you’ve got had. So, I used to be simply curious, excessive degree, how do you steadiness how a lot ahead fairness you have got on the market since you are paying the dividend on it. It is not curiosity expense, however it’s nonetheless a money drag? Or is it that you just see bigger acquisition alternatives arising sooner?

Joel N. Agree — President and Chief Govt Officer

Nicely, to the query of the expense of the ahead fairness, the curiosity in assemble or issue of ahead fairness is, sure, you do pay the dividend. Traditionally, when charges had been at zero or very low, you were not incomes any curiosity. At the moment, the ahead fairness with charges being increased, successfully the curiosity nets out to dividend perhaps to the tune internet of final 10 and 15 foundation factors, inclusive of charges. So, there’s actually no money drag.

Earlier than the Fed lowered charges in the newest time, the Fed lowered charges, there was really a constructive unfold to the ahead fairness. That is the curiosity expense that we’re enduring versus relative to the dividend that we’re paying. And so there actually is a de minimis, if any, expense to carrying that ahead fairness at this time, which may be very totally different than traditionally. Now there may be the treasury technique of dilution, which we talked about within the ready remarks.

In order that’s accounting methodology, however not money. When it comes to how a lot ahead fairness, it is actually a operate of sources and makes use of. After which the place do we expect our macro, the macro-overlays upon that. And so, you may see us, and you’ve got seen us, traditionally carry ample ahead fairness to supply or to make the most of for funding actions.

Clearly, with roughly $920 million in ahead fairness we’re locked and loaded right here, and we’re ready to execute on our steering or above for 2025.

Ki Bin Kim — Analyst

OK. Thanks.

Smedes Rose — Analyst

Good morning. Thanks. I simply wished to ask you, form of primarily to see type of a continued slight downward bias in your acquisition cap charges, however offsetting we see continued upward motion within the 10-year, which I feel is now at about 4.6. So simply trying ahead, I imply, do you suppose vendor expectations even for higher-quality buckets of property that you just cited, do these want to alter? And perhaps are you able to perhaps share what you are seeing up to now within the first quarter?

Joel N. Agree — President and Chief Govt Officer

It is an ideal query, Smedes. I feel a part of the issue is mornings like at this time the place you have got a 10-basis-point spike the final time I appeared within the 10-year treasury after the CPI print got here out. So, we’ve got 45- or 60-day swings with 10% motion within the base fee for successfully the world, the 10-year U.S. Treasury, which has develop into normalized in everyone’s minds.

That features internet lease sellers. And so, the 10-year vacillating between 4.25 and 4.75, I am simply utilizing broad ranges right here, does not actually appear to affect sellers’ expectations of pricing. Now we have been very cautious and really prudent in how we’ll proceed to be and the way we deploy capital at acceptable spreads. And admittedly, how we gauge asset degree pricing on this setting.

That stated, we’re not going to come back out of the gates and beneath $1 billion in acquisitions within the first quarter on this risky setting. We’ll be disciplined. We’ll proceed to handle these makes use of of capital. However the volatility definitely does not assist reset pricing expectations in such a big, fragmented and admittedly, predominantly individually owned area.

What we’re seeing is particular person circumstances of distressed, normally non-asset degree misery, in different property doubtlessly the place there have been partnerships want proceeds, or people want proceeds from the sale or disposition of their internet lease property. However once more, the volatility right here actually does not serve anyone to have stabilized pricing.

Smedes Rose — Analyst

OK. Thanks. I simply wished to ask you, you talked about up to now about persevering with to take share throughout the market and that feels like that is nonetheless the case. I used to be simply questioning, I imply, there’s numerous dialogue round doubtlessly altering the regulatory banks for — sorry, the regulatory regime, I suppose, for native and regional banks and — is there something there that may make them extra aggressive that you’ve in your radar? Or do you suppose it is simply — you may proceed to compete in an analogous setting?

Joel N. Agree — President and Chief Govt Officer

No, I do not see any regulatory points which will open up the capability for banks to lend. However you have got a multipronged drawback as a service provider developer at this time. One, clearly, the liquidity of development financing, the provision of that financing as you are alluding to, the upper — the charges on development loans, the decrease mortgage to price aspect, development loans after which successfully for service provider builders in our area. The power to have some visibility into the place they are going to have the ability to transact on the finish of the day upon completion.

And so, what our developer funding platform continues to do and continues to take share is bridge that hole. With $2 billion in liquidity and a $1.25 billion credit score facility and the ahead fairness place we’ve got. We have now visibility into our price of capital, and we’re capable of present options for retailers and builders to convey initiatives to fruition that may nonetheless pencil. You mix it with rising development prices and tariffs on aluminum and metal and all of those different issues which are going to proceed to problem development prices on this nation, it is a super answer and it continues to realize share, such as you stated.

Smedes Rose — Analyst

OK. Thanks very a lot.

Operator

Thanks. The subsequent query comes from Ronald Kamdem of Morgan Stanley. Please go forward.

Unknown speaker — — Analyst

Good morning. That is Jenny on for Ron. Thanks for taking my query. I feel first with 68.2% of IG tenant publicity, like nearly reaching all-time excessive, how does this evaluate to your long-term expectations? Do you anticipate this proportion to extend within the close to time period based mostly in your acquisition technique? Thanks.

Joel N. Agree — President and Chief Govt Officer

So, we at all times discuss investment-grade proportion being a, actually a proxy for us or an output of our funding technique. And so, 68.2% as you talked about, is close to an all-time excessive. On the identical time, we’re large followers of unrated retailers. Once more, we do not impute credit score rankings reminiscent of Pastime Foyer, Chick-fil-A, Publix, Aldi, and so if these transactions materialize, we’ll be there if the pricing is sensible.

And in order that funding grade publicity was — I’d inform you, nearly artificially ticked up by establishments loading up on Walgreens and different credit to test the proverbial IG field, that may go away rapidly in case you’re not prudent together with your capital allocation and do not see tendencies within the shopper and retail sectors. We’ll deal with the largest and greatest retailers within the nation. The overwhelming majority of these have investment-grade publicity, however there are some funding grade publicity that we’re large followers of. Burlington being one which involves thoughts that is an ideal relationship for us.

So once more, that is actually an output of our funding technique, specializing in our sandbox retailers of the 30 plus or minus greatest spend money on the nation.

Unknown speaker — — Analyst

That is sensible. Thanks. I feel the second I wish to ask concerning the transaction quantity, like contemplating the present setting, like do you see the transaction quantity type of slowed down within the first quarter? Or do you see that type of trending according to your expectations? Like what are the upside or draw back to your like $1.2 billion funding pipeline this 12 months? Thanks.

Joel N. Agree — President and Chief Govt Officer

First quarter is successfully locked and loaded. We have had, as I discussed within the ready remarks, once more, topic to diligence and shutting of a really sturdy January. Proper now, we’re sourcing for the second quarter. When it comes to ahead visibility, on a regular basis modifications.

Each government order and every bit of knowledge that comes out on the setting, and so probably the most thrilling half about this enterprise to me is that any given day, any given hour, a brand new and thrilling alternative can pop up that happens to our pipeline. However we expect, first quarter is true the place we would like it. We’re more than happy with it within the second quarter we’re targeted on proper now.

Unknown speaker — — Analyst

OK. Thanks a lot.

Operator

Thanks. The subsequent query comes from Michael Goldsmith at UBS. Please go forward.

Michael Goldsmith — Analyst

Good morning. Thanks lots for taking my questions. The auto components class stepped up as a proportion of the portfolio ABR by 70 foundation factors, and we all know you are very considerate about what enters your portfolio. So, what’s the thesis for auto components, and why auto components now?

Joel N. Agree — President and Chief Govt Officer

So particular to that transaction, it was a portfolio transaction from an institutional vendor of over 40 property, or at the very least to Napa real. That is our first materials publicity or semi materials publicity to Napa real. Clearly, our publicity to O’Reilly and AutoZone is extra vital, and you may see that in our high tenants. We have talked about auto components.

O’Reilly had print final week. We have talked about auto components and the assemble of common age of vehicles on the highway at 12.7 years, a file the dearth of financeability of vehicles at this time simply given the rate of interest setting. We’ll see now with aluminum and metal. Ford got here out.

Invoice Ford got here out and stated these tariffs may destroy the auto trade. Vehicles at this time are getting older, a file every single day, and so they want extra components. And so, we proceed to like the numerous followers within the auto components sector. The second piece is the underlying actual property, not solely the credit score and the enterprise mannequin.

These are typically 6,000 to 7,000 sq. foot rectangles which are paying $11 to $12 per sq. foot with vinyl flooring or concrete flooring, no TI or TIA or landlords work amortized into the rental charges. They’re multipurpose packing containers. And if that tenant had been ever to depart, file chapter, not train an possibility, you have got a extremely marketable rectangle substitute price. And so, it matches proper inside our wheelhouse.

It is a high three favourite sector of ours.

Michael Goldsmith — Analyst

Acquired it. Thanks for that, Joey. And my follow-up query is simply on the anticipated transaction cadence for the 12 months final 12 months. Transaction market was a lot slower to start out the 12 months and picked up as we transfer via 2024.

You commented that you have had a really sturdy January. So, does that imply that the steadiness via the 12 months ought to be — perhaps proceed to be again half loaded when it comes to acquisitions, however ought to be extra balanced this 12 months relative to final 12 months and that additionally ought to assist assist a few of the earnings progress this 12 months? Thanks.

Joel N. Agree — President and Chief Govt Officer

I don’t know to be frank. I do not know what is going on to occur tomorrow, not to mention third or fourth quarter of this 12 months. We simply began constructing second quarter. Our common transaction cycle is now right down to roughly 66, 67 days on the acquisition entrance.

We’re in a risky setting. I am not going to make predictions. That is why we’re within the heads place with the 10-year swap to three.7, the $920 million of ahead fairness. I actually did not need something to do with the capital markets this 12 months, to be sincere.

And in order that warfare chest goes to permit us to be decisive at instances the place we see there’s alternatives, however we might be affected person, and we expect there’s volatility in underlying pricing ought to transfer. However proper now, actually, all we’ve got is visibility into Q1.

Michael Goldsmith — Analyst

Thanks very a lot.

Operator

Thanks. The subsequent query comes from Rob Stevenson at Janney Capital. Please go forward.

Rob Stevenson — Analyst

Good morning. Joey, are you able to give an replace on Huge Heaps and the way issues look to be taking part in on the market? I feel final quarter, you had a brand new tenant prepared for the Manassas, Virginia location. And the place are you with Grand Rapids and the opposite places lately?

Joel N. Agree — President and Chief Govt Officer

Sure. The Huge Heaps chapter continues to increase on. Clearly, Nexus, the unique purchaser out of chapter failed the week they had been supposed to shut, and so now they are going via one other lease public sale interval. It is a multi-month chapter course of.

Manassas, we’ve got taken the hire from $8.55 per sq. foot to $16 per sq. foot. That lease is signed. The tenant has but to start hire. We’re working in Cedar Park, Texas on one of many different ones, the place we’ve got a high-quality tenant that wish to buy that lease, however wants approvals that may take that hire from $5 per sq. foot to $8 per sq. foot.

We have now vital curiosity within the asset use specified right here in Michigan. After which we’re awaiting the outcomes, frankly, of those lease auctions, which proceed to be delayed based mostly upon simply the chapter, which is type of working circles.

Rob Stevenson — Analyst

OK. That is useful. After which the place is the sale-leaseback market sitting at this time with both your main tenants and others that you just wish to do enterprise with? Are they trying to do stuff this 12 months? Is it probably that there is going to be a lower in quantity there? How would you form of view that given your current conversations with present and potential tenants?

Joel N. Agree — President and Chief Govt Officer

So, as I discussed within the ready remarks, we closed a sale leaseback with a relationship tenant topic to CA and confidentiality. That was our third transaction with that tenant. We have closed already in Q1 sale leaseback with one other relationship tenant. So far as the 12 months progresses, it is actually going to be what the C-suite, what the CFO, how they wish to capitalize their steadiness sheet.

Typically, these are unsecured issuers who’re trying on the unsecured market the place they’ll situation. They’re sale-leaseback market the place they’ll worth. We have had a variety of discussions on sale leasebacks, on totally different structured partnerships for retailers which are growing new actual property on their steadiness sheet. There’s numerous attention-grabbing conversations occurring.

I will depart it at that. We’ll see the place they transpire. This morning’s print in all probability with the CPI at 3% may change that, frankly, or make it extra, frankly, the market extra energetic. And so, look, they’re at all times evaluating price of capital, like we’re evaluating our price of capital to a transaction.

I’d anticipate further sale-leaseback exercise this 12 months, although.

Rob Stevenson — Analyst

OK. Thanks.

Operator

Thanks. The subsequent query comes from Spenser Glimcher at Inexperienced Avenue. Please go forward.

Spenser Glimcher — Inexperienced Avenue Advisors — Analyst

Thanks. Possibly only one in your growth phase. Simply curious if there’s been any change with reference to retailers’ demand to construct new shops, simply given the macro and political backdrop? After which because it pertains to that, have there been any talks about fears round labor shortages? And the way topical is that proper now in your dialogue because it pertains to the event area?

Joel N. Agree — President and Chief Govt Officer

Our discussions, and I have been with, I will say five-plus retailers myself up to now 60 days, they’ve all revolved round retailers. These are the most important retailers within the nation eager to get new shops constructed and the way they do it. Whether or not that is Walmart or Lowe’s or Tractor Provide, O’Reilly, AutoZone, 7-Eleven, Speedway. These tenants all wish to develop.

However given the constraints I talked about earlier in Q&A, there are challenges for his or her progress. Our three-pronged platform and our multilevel capabilities plus our steadiness sheet could be a answer. And so, as I simply talked about on the earlier reply, there’s numerous totally different options being mentioned. I feel we’ve got distinctive alternatives right here given our capabilities within the natural growth entrance plus our price of capital and steadiness sheet to bridge the hole that is on the market at this time and doubtlessly be that answer, however it’s all topic to particular person transaction degree.

After which, Spenser, the one frequent theme that we hear from giant retailers at this time is, versus 10 years in the past when brick-and-mortar is useless, at this time, the shop is the hub. It is not one piece of an omnichannel answer. It’s the hub of the omnichannel answer. All retailers at this time have realized if e-commerce is a major a part of their omnichannel platform, that is mainly all of them outdoors of off-price, that they can’t ship good folks to their dwelling without cost and have them return without cost 40% through UPS or FedEx.

That mannequin does not work. And so, driving visitors to the shop, and if you do not have a retailer in that MSA, is vital. So, that is the best need to increase that I’ve seen for retailers since earlier than the nice monetary disaster. The problem is how they accomplish that on this liquidity constrained, elevated development price setting.

And that is the place I feel, once more, our distinctive capabilities can come to play. And retailers, as I discussed within the ready remarks, totally recognize that at this time as a result of there is no public firm in our area with our growth capabilities. And there is no personal firm in our area with the price or price of capital and liquidity and steadiness sheet that we’ve got. So, it is us and us alone that may present a few of these options.

Spenser Glimcher — Inexperienced Avenue Advisors — Analyst

OK. Nice. Sure. Now your feedback on the financing alternate options and retailer urge for food to develop, that definitely is sensible.

However labor and labor shortages and immigration coverage, clearly, that is out of most individuals’s palms. So simply curious if that has been arising in any respect in discussions and if that is going to doubtlessly deter or delay growth, at the very least as you see it within the pipeline proper now?

Joel N. Agree — President and Chief Govt Officer

No, it has not come up but. Might come up if we see some mass deportations. However the greatest problem to get is simply constructability and development prices.

Spenser Glimcher — Inexperienced Avenue Advisors — Analyst

OK, nice. Thanks.

Operator

The subsequent query comes from John Kilichowski at Wells Fargo. Please go forward.

Unknown speaker — — Analyst

That is Cheryl on behalf of John. I simply wish to perceive what themes or considerations have emerged when it comes to progress plans for a few of your tenants? And within the mild of current bankruptcies and retailer closures, are any of your tenants ready to capitalize on these alternatives given the vacant retail area accessible?

Joel N. Agree — President and Chief Govt Officer

It is the dearth of area that is accessible. We seated within the Occasion Metropolis public sale the place Greenback Tree and 5 Beneath, I feel, about 33% of the leases. And so, retailers, and we have talked to them and admittedly, educated a few of them is, in order for you new shops, buying leases in bankruptcies and efficient and environment friendly means to take action. Now we’ll have put ourselves at a sandwich place there, shopping for a leasehold and subleasing.

That is not what we wish to do on the finish of the day. However in the end, retailers should be artistic with their progress given the constraints within the setting at this time.

Unknown speaker — — Analyst

That is sensible. And only one fast follow-up in your remark that personal gamers haven’t got liquidity or entry to capital. Are you able to focus on cases, in case you’ve seen any personal gamers exit the market? Or are you seeing any alternatives arising from personal capital not having the ability to take part in acquisitions? Thanks.

Joel N. Agree — President and Chief Govt Officer

Positively throughout all three platforms, proper. The shortage of 1031 to capital on this area as a result of transaction slowdown throughout business actual property, the dearth of personal capital as a result of elevated charges, that is each on the particular person and institutional degree. Once more, I am unable to stress sufficient, a fortress steadiness sheet with a locked in price of capital is a large benefit at this time.

Unknown speaker — — Analyst

Thanks a lot.

Operator

Thanks. The subsequent query comes from Upal Rana at KeyBanc Capital Markets. Please go forward.

Upal Rana — Analyst

Thanks for taking the query. Might you guys remind us how a lot dangerous debt was embedded into steering in ’24? And the way a lot got here to realization final 12 months? After which how a lot is embedded this 12 months?

Peter Coughenor — Chief Monetary Officer

Positive. That is Peter. When it comes to our information for 2025, that features an assumption for 50 foundation factors of credit score loss. And that compares to the roughly 35 foundation factors of credit score loss that we incurred in 2024, which is barely above our longer-term common.

In 2024, our information additionally included an assumption for 50 foundation factors of credit score loss. I’d say that this 12 months, the 50 foundation factors permits for a worst-case state of affairs, if you’ll, with Huge Heaps. And along with that, it contains an allowance for different potential credit score points which will come up through the 12 months.

Upal Rana — Analyst

OK. Nice. That was useful. After which the opposite steering query was tendencies this 12 months could possibly be rather less than final 12 months.

What are your ideas there? And what sort of sorts of tenants or industries are you focusing on for tendencies this 12 months?

Joel N. Agree — President and Chief Govt Officer

Sure. If we roll again the clock roughly, name it, 14, 16 months, 16 months, we had been speaking a few do-nothing state of affairs. After we got here out in January with a leverage-neutral $500 million state of affairs, which included roughly $100 million in tendencies, which we hit, which was successfully pushed by capital recycling for low-yield property in Florida. We noticed some odd ball transactions in Florida, capital flowing into Florida, paying aggressive cap charges, and we took the chance to recycle property there all year long.

This 12 months, not tendencies will actually deal with noncore property, or frankly, if somebody values a property greater than we do. They’re all on the market, all 2,400 of them for the correct worth. But it surely’s definitely not a essential supply of capital given the $2 billion in liquidity that we ended the 12 months with.

Upal Rana — Analyst

OK, nice. Thanks.

Operator

Thanks. The subsequent query comes from Linda Tsai at Jefferies. Please go forward.

Linda Tsai — Analyst

While you look throughout the panorama of shops, who’re you seeing hire coverages enhancing or deteriorating on the margin versus a 12 months in the past?

Joel N. Agree — President and Chief Govt Officer

Good morning, Linda, we do not get hire protection for many of our tenants on the EBITDA at retailer degree. That is not one thing that Walmart, or O’Reilly, or TJX goes to supply on the retailer degree. That is typically located in a small middle-market sale-leaseback transaction. However I feel we will look throughout sectors at this time and see experiential retail, automobile washes, eating places, and this is not clearly — actually not related to our portfolio.

However we will see the hire coverages there having challenges given the extremely levered steadiness sheets and the highest line degradation of operators like Topgolf that report publicly via Callaway.

Linda Tsai — Analyst

After which what metrics or features pushed you to a BBB? And the way far are you from one other score improve?

Joel N. Agree — President and Chief Govt Officer

So, BBB+, we obtained upgraded to final 12 months. Simply actually, it is simply measurement. The score companies, frankly, are pretty sluggish. S&P, my opinion, was two to a few years too late to improve us to BBB+.

So at this time, we sit at BAA1, BBB+. I feel that is the very best steadiness sheet, frankly, in all probability in all of them. If not, it is high 3, we’ve got no materials debt maturities till 2028 with a warfare chest. You mix that with our portfolio, the range from a geographic tenant and sector perspective, the dimensions of our property and the money flows associated to them, after which simply the character of the recession resistance of our portfolio, and it is fairly tough to argue in opposition to A- credit standing.

So, it would come sooner or later. We do not management the timing with both of the score companies. But it surely’s actually simply measurement at this level and so they proceed to maneuver that barometer. It was $5 billion, then $10 billion and so they proceed to maneuver that threshold round.

Linda Tsai — Analyst

Thanks.

Operator

Thanks. The subsequent query comes from Wes Golladay at Baird. Please go forward.

Wes Golladay — Analyst

Good morning, guys. Are you able to discuss how the sandbox is evolving? Possibly the few tenants you not do enterprise with, however then conversely, you are now a one-stop store [Inaudible] curiosity with you and you probably did do a brand new cope with Napa?

Joel N. Agree — President and Chief Govt Officer

We’re at all times trying on the sandbox. There’s nothing static. We’re following retailers, shopper tendencies, sectoral tendencies, all these related information factors. The evolution of the sandbox, frankly, to get in or out is fairly sluggish.

I imply we’re coping with the largest retailers right here on the earth, however there are retailers, reminiscent of I discussed within the ready remarks, Boot Barn, which we’re an enormous fan of, which we’re actively doing a venture with. However the evolution of the sandbox is sluggish, proper. I imply we’re methodically watching the credit score profile, shopper tendencies, and all of these related information factors to both enter and/or exit the sandbox. The second driver of that’s simply publicity general within the portfolio.

We wish to have a well-balanced portfolio. We do not suppose it is acceptable to take tenants as much as 10% or 9%, the asset perhaps Walmart or any person of that ilk. We wish to have a well-balanced portfolio from a tenant perspective, a sector perspective in addition to geographic.

Wes Golladay — Analyst

OK. After which a fast query on G&A. One of many large components of the story as has been scaling the G&A in the previous couple of years. This 12 months is form of flatlining.

What’s driving that enhance? And the way a lot is because of money versus noncash?

Joel N. Agree — President and Chief Govt Officer

I will let Peter converse to the money versus noncash. Clearly, we began final 12 months with the do-nothing state of affairs. We made vital investments as soon as we activated through the second half of final 12 months. Each to finalize the 12 months when it comes to folks and programs after which in preparation for 2025.

We have onboarded a variety of new workforce members right here that will likely be right here for full 12 months 2025, have just a few positions that we’re hiring for nonetheless in 2025. I feel you may see in the end that quantity scale can be pushed down. Our preliminary steering, clearly, as you talked about, is in line there. When it comes to the money versus noncash, Peter, I will allow you to take that.

Peter Coughenor — Chief Monetary Officer

Sure, Wes, simply to make clear, we information to complete G&A as a p.c of adjusted income, and that features noncash G&A. To the purpose of your query, we have seen better progress in our noncash G&A expense, relative to money G&A over the past couple of years. And so when fascinated about the affect to AFFO, we’re persevering with to see money G&A at scale as a p.c of adjusted income. And as we proceed to scale the enterprise, we might anticipate that that pattern continues.

Joel N. Agree — President and Chief Govt Officer

Sure. And I’d word that the noncash G&A is de facto the driving force of that’s the operate of going from a five-year restricted time-based inventory to a three-year, which we thought from phrases of expertise administration functions was vital. We made that change, Peter, in —

Peter Coughenor — Chief Monetary Officer

2023, a few years in the past.

Joel N. Agree — President and Chief Govt Officer

2023. We did not suppose that workforce members totally worth the five-year vesting interval, and three years was extra according to trade requirements. And admittedly, with simply mobility at this time when it comes to jobs and we wished clearly to retain high workforce right here.

Wes Golladay — Analyst

Acquired it. Thanks, everybody.

Operator

Thanks. The subsequent query comes from Eric Borden at BMO Capital Markets. Please go forward.

Eric Borden — BMO Capital Markets — Analyst

Good morning. Simply on the 2025 lease expirations. Of the 41 leases set to run out this 12 months, are there any recognized move-outs? Or are any of the 41 on the disposition goal listing at this time?

Joel N. Agree — President and Chief Govt Officer

Actually no recognized materials move-outs. Most of them will train contractual choices. These are rolling in, as we, weekly if not each day. And so no recognized materials move-outs doubtlessly if there was, we might have some — we’re enthusiastic about it.

We’ll see in the event that they train their possibility, that is in Provo, Utah to an A+ piece of actual property. Since subsequent to reporting, we have had some choices exercised, together with the Walmart, Rancho Cordova with a five-year possibility train. That is a floor lease. And in order that listing continues to dwindle subsequent to 12/31.

Peter Coughenor — Chief Monetary Officer

Eric, I’d simply add when it comes to — I agree with Joey, there’s nothing materials when it comes to lease roll there. However to the extent we have recognized something that may be captured inside our credit score loss information for the 12 months as properly.

Eric Borden — BMO Capital Markets — Analyst

OK. That is useful. After which simply on capital allocation. I do know that liquidity is full and that you just need not entry the fairness markets to amass any of the 2025 potential acquisitions.

However as you look to replenish the warfare chest for 2026 and past, how are you fascinated about the capital combine? I feel, Peter, you had talked about a possible long-term debt issuance. However sure, any shade on that may be appreciated.

Joel N. Agree — President and Chief Govt Officer

We have now a 10-year swap to the tune of $200 million at 3.7% for any future issuance this 12 months within the unsecured debt markets. However in actuality, we do not want the greenback. As we talked about within the ready remarks, we will keep sub-five timex by investing $1.5 billion this 12 months with none incremental tendencies. So, this can be a pre-equitized steadiness sheet that does not want a greenback, that has a swap in place to entry the unsecured markets in a 10-year treasury market that is extremely risky.

Eric Borden — BMO Capital Markets — Analyst

All proper. Thanks very a lot.

Operator

Thanks. The subsequent query comes from Farrell Granath at Financial institution of America. Please go forward.

Farrell Granath — Analyst

Good morning. Thanks for taking my query. I used to be questioning if you may make just a few feedback on the way you had been fascinated about the well being of the patron, particularly the decrease finish and the way which will affect the retail that you just’re uncovered to?

Joel N. Agree — President and Chief Govt Officer

Look, we proceed to see stress on the low-income cohort undoubtedly with inflation and eggs clearly, again within the information with items and companies which are necessity-based. The high-end shopper with the — their 401(ok)s and their portfolio. Metal feels properly. After which commerce down in, let’s name it, the 150 median family earnings to Walmart, and Walmart persevering with to take share.

And so that can proceed to evolve all year long, clearly, topic to inflation, topic to macroeconomic components, however we see a bifurcated if not trifurcated shopper at this time.

Farrell Granath — Analyst

Thanks. And likewise when it comes to competitors available in the market, are you seeing any shifts at this time and going ahead in comparison with the previous couple of quarters?

Joel N. Agree — President and Chief Govt Officer

Our competitors continues to dwindle. Once more, on the finish of an rate of interest tremendous cycle with 1031 transactions lagging, clearly, with the transactional market minimize by 45% over the previous couple of years from historic averages, we’re seeing much less and fewer institutional competitors, particular person competitors, tax-motivated competitors, DST motivated competitors. The competitors at this time is with sellers’ expectations themselves. And the place they suppose pricing ought to be on this new world order of 2025 that we’re in.

And so, we encourage brokers on a regular basis, sellers on a regular basis to get up to February of 2025 and cease pretending it is 2023.

Farrell Granath — Analyst

OK. Thanks very a lot.

Operator

Thanks. The subsequent query comes from Wealthy Hightower at Barclays. Please go forward.

Richard Hightower — Analyst

Good morning, guys. Thanks for taking the query right here. I suppose, Joey, you spent numerous time this morning speaking about DFP and the way it’s type of a singular answer within the market for retailer retailer progress. What are the gating components to that changing into, throughout the measurement of your enterprise, multiples of what it’s at this time? Is it merely demand on the retailer aspect, it is the focus situation when it comes to how the corporate allocates capital? Possibly spend a bit time on that, in case you do not thoughts.

Joel N. Agree — President and Chief Govt Officer

Positive. One factor, returns in addition to they match into our sandbox. We aren’t going to deploy capital into growth funding platform or growth to returns that we will execute in 67 days within the acquisition area. Danielle Spehar, our normal counsel right here, did an amazing job in 2024, compressing our days to shut right down to that 66, 67, and her workforce.

However once more, period equals danger, and we’d like a premium based mostly upon that danger and period. And in order we have talked about, if we will churn and burn take a constructing that present construction, get in there, add on to it, do a renovation, enhance web site enhancements and growth and the tenant goes to be paying hire in 120 days slightly than 67 days. That may be a tighter unfold, name it, 50 foundation factors to the place we will purchase a like-kind asset. If we’ll undergo a 12- to 18-month entitlement, allowing, and development course of, that unfold goes to be wider.

And so that is the true gating issue right here for us is builders, returns on price, the place they’ve initiatives, retailers’ expectations for return on price. And we kind via a whole lot, if not 1000’s of initiatives yearly to resolve which of them we expect make sense given the type of these brackets.

Richard Hightower — Analyst

OK. That is very useful. And I will ask one other query, which I feel has been requested in several methods. However as we expect — as we begin to consider 2026, funding sources and makes use of, and I recognize that it is arduous to make predictions, particularly concerning the future.

However simply given the choppiness of the previous couple of months for fairly apparent causes, what are the possibilities in your thoughts that 2026 could possibly be a do-nothing state of affairs over again?

Joel N. Agree — President and Chief Govt Officer

Nicely, you actually requested me I feel — look, I do not suppose it should be a do-nothing state of affairs in 2026. I feel we’re sitting within the pole place proper now. I am not involved about, once more, as I’ve stated within the ready remarks, the penny right here or a penny there. I’ll take potential treasury technique dilution versus a prefunded warfare chest within the 10-year swap to 37 , 10 out of 10 instances for a possible dilution of a penny or two for accounting methodologies.

What we’re sitting on when it comes to this portfolio and this steadiness sheet, inclusive of its maturity schedule, is actually unprecedented, I feel within the area. And I feel it should proceed to endure worth and 2026. I would not anticipate it could be a do-nothing state of affairs. But it surely’s solely February 2025.

So, we’ll see what government orders are signed at this time and all year long.

Richard Hightower — Analyst

Acquired it. Thanks for the feedback.

Operator

Thanks. And the final query comes from Haendel St. Juste at Mizuho. Please go forward.

Haendel St. Juste — Analyst

Two fast ones for me. First, I wished to observe up on the sooner feedback on the 50 foundation factors of credit score reserve. I hoped you might add some shade and ballpark publicity to not simply Huge Heaps, but in addition to Joann’s, Occasion Metropolis, Household Greenback? I suppose I am attempting to get a greater sense of the classes and tenants particularly within the portfolio or watching a bit extra intently right here. Thanks.

Joel N. Agree — President and Chief Govt Officer

Sure, Haendel. It is actually the massive lot state of affairs as this continues to play out. We have now two celebration cities within the portfolio that we’ll be thrilled to get again. One is {that a} Goal-anchored buying middle in Davenport, Iowa and one is in Texas, in Port Arthur.

We might be thrilled to get these again and have tenants lined up and ready. We do not personal any Joann’s. Undecided, frankly, why anybody would in at this time’s setting in a internet lease construction. Most likely the worst retail chapter of all time.

All of the shops had been making a living, 9 months later, we file once more, we would want venture on lease. We anticipate them to successfully liquidate at this level simply to go to Pastime Foyer who’s our favourite. However that is — I imply, that is actually it. A few film theaters we’re at all times watching.

I noticed the Oscars come out. I do not know probably the greatest titles. In order that at all times considerations me. Probably the greatest movies, did not see any of them.

Apart from that, we’re in an ideal place.

Haendel St. Juste — Analyst

Acquired it. I recognize that. I additionally wished to ask about what you may be listening to concerning the potential affect of tariffs to a few of your tenants. I used to be a few of your tenant classes like dwelling enchancment, auto components, farm provide.

I used to be curious in case you suppose that they could possibly be extra in danger as a result of a variety of them have objects which are produced assembled in Mexico, Canada, China. And so curious how that may be impacting your pondering and perhaps your underwriting in a few of these classes?

Joel N. Agree — President and Chief Govt Officer

Look, the nonstop tariff discuss, which does not look like going anyplace goes to, successfully all shopper classes and retail classes at this time and in the end movement right down to the patron. That is the underside line. So, whether or not it is nonetheless ahead speaking about vehicles or another parts which are manufactured and/or imported into this nation. The excellent news is that the majority retailers, the nationwide retailers as a result of first Trump presidency within the tariffs, they actually diversified their supply, they’re sourcing.

And so coming from now, it looks as if solely Australia will not have tariffs. So, trying throughout their international procurement efforts, TJX, for instance, which might be a beneficiary from these tariffs, as a result of I feel you may see, commerce down has, I imagine, it is 16 international — buying places of work in 16 international locations across the globe. These efforts that got here from the 2016 administration and people tariffs hopefully, and I feel did give frankly, retailers the chance to diversify their procurement sources and their buying. That stated, in the end tariffs movement right down to the patron until retailers wish to eat it in margin.

We have now the largest retailers within the nation in our portfolio for a motive. They’ve the liquidity and the steadiness sheet to spend money on labor, to spend money on worth which straight might be proper associated to tariffs. Walmart can select. TJX can select to not transfer worth and it takes share.

Now if I am a small center market retailer, and I am topic to these tariffs, and I haven’t got a multibillion-dollar steadiness sheet, I will should cross that via one way or the other or discover some financial savings in SG&A. And so, it is — look, tariffs will proceed to be within the information, the affect of them. We’ll see what these are as they work via and so they get resolved. However it will likely be the small center market retailers that undergo the best penalties from any tariff right here.

Haendel St. Juste — Analyst

Admire the ideas. Thanks, guys.

Operator

Thanks. And the final query now’s from [Inaudible] an investor. Please go forward.

Unknown speaker — — Analyst

That is Sam on for [Inaudible]. I simply wished to ask you guys in case you can provide us an replace on a few of the retail classes skilled headwinds, particularly speaking about Greenback shops and on pharmacies?

Joel N. Agree — President and Chief Govt Officer

What we noticed CVS is print this morning, which beat steering and a robust outlook for 2025. That is simply CBS particularly. The pharmacy sector, clearly, I imply in case you look year-over-year, pharmacy for us is down 10% nearly, however that is with none materials tendencies year-over-year. And so these sectors that had been within the information will proceed to expertise a few of these headwinds, absent clearly some macroeconomic modifications.

We’ll proceed to spend money on what we expect are the very best retailers in a recession-resistant setting, identical sticking to our sandbox. So, you will not see us transfer into experientially. You will not see us ramp our greenback retailer publicity that is simply taking place each single day. You will not see us enhance our pharmacy publicity.

We’re targeted on the very best and brightest classes in our opinion, whether or not that is off-price, normal merchandise, Walmart, tire and auto service, auto components like we talked about earlier, dominant grocers on this nation, reminiscent of Kroger, all of the Wegmans, H-E-B, Publix. We’ll be targeted on the very best of the very best right here, and we’ll let the — actually every thing else shake out.

Unknown speaker — — Analyst

All proper. That is sensible. And I suppose the final query, I hope I did not miss it. Are you guys seeing something change out of your watch listing [Inaudible] credit score perspective?

Joel N. Agree — President and Chief Govt Officer

No. As I discussed earlier, we’re simply persevering with to navigate and watch, or actually cannot do a lot via this Huge Heaps chapter with the few Huge Heaps that we’ve got. With the following lease public sale, they proceed simply to undergo totally different palms. However our portfolio, we really feel like is in nice form.

Unknown speaker — — Analyst

All proper. That is all I obtained. Thanks, guys. I recognize the time.

Operator

We have now no additional questions. I’ll flip the decision again over for closing feedback.

Joel N. Agree — President and Chief Govt Officer

Thanks all for becoming a member of us this morning. We look ahead to seeing you at upcoming conferences, and we recognize everyone’s time. Thanks once more.

Operator

[Operator signoff]

Period: 0 minutes

Name members:

Reuben Treatman — Director, Company Finance

Joel N. Agree — President and Chief Govt Officer

Peter Coughenor — Chief Monetary Officer

Joey Agree — President and Chief Govt Officer

Ki Bin Kim — Analyst

Smedes Rose — Analyst

Unknown speaker — — Analyst

Michael Goldsmith — Analyst

Rob Stevenson — Analyst

Spenser Glimcher — Inexperienced Avenue Advisors — Analyst

Upal Rana — Analyst

Linda Tsai — Analyst

Wes Golladay — Analyst

Eric Borden — BMO Capital Markets — Analyst

Farrell Granath — Analyst

Richard Hightower — Analyst

Wealthy Hightower — Analyst

Haendel St. Juste — Analyst

Extra ADC evaluation

All earnings name transcripts