Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you give us any color about your upcoming rental rate increases over the balance of the year and if you expect any lease turnovers during the same?
A: We have very little lease turnover this year, with only a theater in Reno at the end of November, resulting in just one month of lag. Overall, we expect about a 1% annual increase in rent escalations across our portfolio.
Q: How do you look at the priority for capital deployment between acquiring new retail loans versus share repurchase, especially in a depressed transaction environment?
A: We balance between opportunistic loan opportunities, which offer high risk-adjusted yields, and share repurchases. The decision is revisited quarterly by the board based on market conditions and stock opportunities.
Q: Is there an upper boundary for how big of a loan exposure you would want to have over the next year or two?
A: Our credit facilities limit our loan activity, setting an upper boundary of about $10 million above our current position. We may recycle some loans as opportunities arise, but the aggregate amount would be in the mid $50 million range.
Q: Given the reluctance of sellers, how robust is the market for buyers of your disposition assets, and could this be a delaying factor in selling some assets this year?
A: There is a fair amount of capital becoming more productive on the acquisition side. The 1031 market remains efficient, especially for properties below $5 million, indicating an active market for dispositions.
Q: Regarding the Boston Market tenant, what is the mark-to-market on that lease?
A: The next tenant for the Boston Market property is expected to bring in about 20% higher rents, indicating a positive mark-to-market scenario.
Q: How much of the more attractive acquisition environment is reflected in your current pipeline, and what is the timing for your acquisition volumes?
A: We are bidding on many properties but conservatively, as we assess sellers' motivations. Significant acquisitions are more likely pushed to the third and fourth quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.