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O Realty Income

Participants
Andrew Crum Senior Associate
Sumit Roy President & Chief Executive Officer
Paul Meurer Chief Financial Officer & Treasurer
Christy McElroy Citi
Nick Yulico Scotiabank
Rob Stevenson Janney
Collin Mings Raymond James
Karin Ford MUFG Securities
John Massocca Ladenburg Thalmann
Karin Ford MUFG Securities
Call transcript
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Operator

Good day and welcome to the Realty Income First Quarter 2019 Operating Results Conference Call. Today's conference is being recorded. At this time I would like to turn the conference over to Andrew Crum, Senior Associate, Realty Income. Please go ahead sir.

Andrew Crum

Thank you all for joining us today for Realty Income's first quarter 2019 operating results conference call. be Meurer, President Treasurer. Chief will Officer; Chief results Paul and Financial our Sumit and Roy, Executive Discussing Officer and

this forward-looking securities make forward-looking will significantly from future conference may discussed differ During considered in matters be any results statements may statements The law. that federal the Company's statements. actual under we

CEO, Instructions] cause Sumit over the Company's in We in detail greater differences call will the the XX-Q. Roy. such I'll [Operator disclose to turn our factors that may now Form

Sumit Roy

Andrew. Thanks, our today. Welcome call to

pleased to are begin We successful XXXX quarter. with another

end, our continue high-quality net institutional UK This we Company's estate our our through assets expansion significant in of evolution During mainland large in capitalize the there to approximately on strategic we the with is UK leases. of we continue well-positioned of flow Europe. represents Subsequent the the quarter million addressable we quality believe invested GBPXXX and natural grow a strategy triple-net quarter that as our dearth a a market standpoint, and pursuing average investment we tenant will we $XXX intend are a to From to leaseback Sainsbury's above buyers announced to million well our meets single international transaction in ample long-term and a Europe in transaction parameters. that real platform leased invest international spread, see under sale we and investment historical to in.

with This was completed off-market forward ability expand we developing We we size, negotiated our to was have of Sainsbury's with of billion we and advantages, operators. from on with a per scale industry unique Concurrent $X.XX our transaction transactions sale execute portfolio platform. range basis. as portable of to a billion. other range guidance to the leaders believe and our $X.XX relationships an look AFFO to cost to acquisition like share transaction capital of and further relationship-driven sizable Given guidance our we XXXX with $X of range $X.X increased we $X.XX a prior Sainsbury's, announcement XXXX increased to international $X.XX a leaseback our to best-in-class

have properties. to XX.X% portfolio XX of tenant, certain industry, quarter in cash revenue. different largest XX type, states end, Rico. and flow. of located properties which a the The revenue. component property tenant from our our extent and Puerto diversified to geography of is to continues rental been these more in with comes contributes industries bankruptcies at our that e-commerce outside remains Our Walgreens X.X% price commercial our revenue retail leased remains effectively XXX our service were and/or our at revenue. tenants by not of our low to in store tenants XX% rental have believe rental of characteristics the of of largest nondiscretionary of in industry from overall environments. Within allow these and relevant factors approximately their operate industries rent of climate been particularly our portfolio, vast component economic recent U.S. point possess majority compete where a variety to retail today's at We characteristics. in XX% be stability At XX% is to These retail with retail industrial rental retail our do traditional properties tenants a largest business. nearly Convenience

our is retail times with in half revenue over properties continue rental our X.X have ratio The a median four-wall for rent weighted credit annualized rated from investment excellent the basis We X.X average coverage portfolio of to is on quality while generated tenants. the times.

a years. over XX.X%, Occupancy, first properties, the a of versus basis consistent with few relatively is the ago levels rent was XX of decrease period. number points X.X% at list on watch based Our our of year

XX% approximately be to XXXX. We expect in occupancy

leases we the we XXXX, released. over over XXX% properties that have properties properties, XX or on released approximately were with of those released the sold recapturing During rent. X,XXX our expiring quarter in listing expiring, of recapturing XXX% Since rent

during X.X% increased quarter. revenue rental the same-store Our

projected increases. rate Approximately XXXX leases our be run XX% to circa X%. have contractual continues of for Our rent

Let over to provide on additional me hand it Paul? our results. Paul financial detail to

Paul Meurer

expenses rental are XX-Q statement. consolidating highlights tenant revenue Thanks, statement. continue statement accounting we quarter tenant our the the the attributable few Sumit. new lease starting the adopted result users for both financial to of I in quarter separately will first revenue guidance. items our as provide within To in will our and in aid a component income with we reimbursement our to a supplement. results in the revenue for reimbursable now financial disclose in we income financial And Effective

as margin basis and a of quarter for excluding G&A X.X% revenue, G&A a expense year-ago a reimbursement, Our below percentage our the expenses quarter, the from was in basis. both dollar

and expect in our X% below continue G&A to lease margin net the We the to XXXX. have G&A sector ratio lowest REIT remain in

Our Briefly or we distribution have available turning revenue, which cash non-reimbursable property the excluding quarter X.X% AFFO our as or year in for was the share was to remains of sheet. X.X% which expectation the a for to expenses a the of per dividends represents reimbursements, operations full from the range. X.X% quarter, X.XX% as ahead funds percentage for also Adjusted balance $X.XX actual increase.

remain our with maintain course of of to AA one conservative few least capital at continued we structure a and only rating. have REITs We

dividend this stock of XXXX $X.X quarter XXXX. X.X equity through reinvestment million of the issuing a with approximately in and our quarter debt-to-EBITDA During entered we almost of of the equity that ended quarter with on $X.X with billion very credit line. issued available common quarter We we low leverage we after times plan. common million Note purchase $XXX a ratio first finished our fourth the

overall our excellent and $XX X.X thereafter great bonds excellent of XXXX maturity tracks average both Our liquidity. our weighted selling years debt our approximately of is debt schedule And debt of well-laddered continue remaining fixed is charge in remainder to remains summary, of In and balance ratio in average coming lease sheet leverage, the just term. maturity times in to coverage our and X.X our times. which and from low million X.X increased maturity coverage is schedule The strong closely ratios weighted $XXX with XXXX. over million have due we XXXX shape maturing shape,

Now let me over Sumit. turn to the call back

Sumit Roy

Paul. our Thanks, investment to move during now I'll the quarter. activity

These cash located quarter and of XX XXX first $XXX lease the in with to in rate XX average During generated are X.X% of years. a XX XX basis, different are cap in term acquisitions approximately total from weighted of the from XX.X% we at tenants. million assets XXXX invested states industries. a leased tenants retail. On XX% of initial approximately an average investment-grade properties revenues revenue are of

the one-off quarter. first acquisitions quarter, sourced XX% transactions. and approximately as $XX.X volume quarter, are represented stores. closed the in XX% of quarter. we and of the most first XX Some approximately industries continues fitness, volume first We the automotive first to discrete transactions XX% were were the sourced of opportunities in one-off the in or closed and Of remain for sourced the the flow grocery Transaction significant services billion quarter. healthy $XXX $X.X the portfolios health Investment-grade during first assets. XX% were million opportunities Of in represented billion

are rates rate from properties high Investment-grade range low X% from trading As rate to cap trading X% range. unchanged in high are cap cap pricing, to around remained the non-investment-grade and essentially have to first X% properties X% quarter.

average our our investment average which historical our basis year of were to weighted were investment weighted capital. as XXX above quarter, capital first Our averaging first nominal spreads well points less define average initial spreads relative spreads. of yield the cost cost approximately healthy, cash in We

corporate Our remain pipeline the lease our that a see company negotiated only continue basis. parameters. has size, sale-leaseback transactions a capital pursue on We to and remains flow domestic robust of cost publicly to traded investment opportunities investment that the we and of scale meet steady net large

first our the XX% acquisitions transactions. identify for quarter future During to continue leaseback sale-leaseback and were transactions sale approximately corporate partners we strong of

due XXXX to to acquisition billion of our strength we billion. As the range current guidance as expansion, pipeline a investment to in have previously our international raised as mentioned, well $X.X domestic $X

Our disposition program active. remains

for driven X.X% of of IRR During the low X.X%. cap disposition our unlevered of the one of IRR IRR primarily disposition, net cash at The this the Absent dispositions net vacant on properties retailer. quarter we sporting-goods a an activity quarter was sale our during a by to property sold during quarter realized rate XX X.X%. million and proceeds previously on leased $XX.X was

assets, portfolio the investment through the continue non-strategic properties of into the sale fit to our that We sale recycling better parameters. proceeds of quality our improve

in We In for March, continue between history. million the XXXX. $XX $XXX dispositions to we increased dividend the and time million our Company's anticipate XXXst in

period and year-ago increase current AFFO midpoint XX.X% ratio guidance. dividend represents X% to annualized XXXX a on over based payout the the Our a of equates of

dividend We average have every the the year since of increased at growing dividend our a XXXX, listing compound annual X.X%. Company's rate in

We quarter. be Aristocrats the of are Yield it in strong To REITs proud Dividend only S&P another Index. to High we five up, completed one wrap

perform well. to continues portfolio Our

time open remains chapter At new I domestically to as to internationally. like it and about next Our pursue we this and would investment robust Company's both pipeline Operator? for excited are we questions. up continue opportunities the growth, for

Operator

We [Operator McElroy ahead. from now go question Citi. first take Instructions] Thank will you. of Please our Christy

Christy McElroy

Hi, morning guys. good

post of to And now your in if is period a that again up wondering any given been QX the that has issuance timing deal and pick issued So quiet were you expect you equity the the maybe Sainsbury have would deal it in ATM given relative pretty announcement? wide normal you pace, to the announced?

Sumit Roy

nature regards Sainsbury's, on. Because question, in spot of we were of Christy, the period. with blackout a you're Good the and transaction to

the was that so And reason. primary

anticipation equally transaction. balance and of particular we the was second sheet in quarter had overequitized important The fourth our this in reason

So sheet sheet coverage even a look times fixed times X.X you the good very it's a where at stand. balance X.X is, if It leaves of the in at debt-to-EBITDA, the charge north quarter on balance basis. of the end

raising, were all But best the primary So reasons. with open to avenues going to we those capital avenue will regards and choose forward. the us available perpetually are

Christy McElroy

sorry, year? of Okay. XX thinking sure that -- looks if like bit, number. XX%. looking But for what think the outlook an wasn't about and ticked drivers or the maybe I was And rest should occupancy you of average down number the then main I I'm a of sort we rate just of be that comment a year-end at the on any that said sort

Sumit Roy

good disproportionately which occupancy These what high. Again, three look is guidance, which expiring And quarters we is got Street We which number. had Street expiring. if a anticipated in to earnings our XXX The reflected we've we XX% quarter first and what's remaining The two guided was question. the leases the why in you XXX at guided for Yes. was had leases

that was XX% to we So the anticipated come going down.

we believe right around operational that market always the we've our occupancy As ZIP Code. shared with that X% is

number at. and having we XX% so we what to going an And at believe our occupancy be is we're forecast business is running what

Christy McElroy

just I that be the And last revenue I'm MD&A? Okay. Paul, one one. will component or mention just you could, Q the heard that to quick I the I curious, disclose thought you'll then in the continue also. breakout in footnotes if

Paul Meurer

by So it that it right you have can supplement way now immediately. the so you the see in

Christy McElroy

Right.

what We about -- the and curious in have terms guided to in it Q SEC what the Q? terms that the allowing FASB supplement, of in in of the I'm you just yes. the

Paul Meurer

It in be MD&A. will our

Christy McElroy

Great, thank you.

Operator

Yulico of question go from ahead. Please Nick next comes Our Scotiabank.

Nick Yulico

evolved the a there other the based more guess any US, investment some more know, when at be or seems industries retail of given -- changes where you look wondering making tougher what drugstore like you on operating of, is I in on might just I capital a in little thinking are retail in the environment? environment was you your terms industry Thanks. exposure less

Sumit Roy

often in industry of based largest Nick. north cash our driven drugstore instance, question, free look Good be it's billion operators, flow. exposure. that exposure we a they're This to industry. get CVS. if It primarily question And And on at generating our by continues two is $X to the you asked and Walgreens for second Walgreens,

the in look at the of there operators you it's If industry. best drugstore one CVS, out

of But feel, believe these before we drugstore operators two some it are the see by advantage Absolutely. we well-positioned that of We through these that very eyes. changes? changes are unfolding business. to very our positive going Is and we take large

as drugstore very the that It's does very layout not Some of Walgreens what the have CVS is of not how strategy well are of part it what answers it clear But their like their clear. look the optimize which, stores. today? as future both to out figure is to clear, made

as the way for out to comp to to pharmacy for of is with they remaining experiments are as two-thirds CVS continue the If that. what And figure you same-store trying optimize Walgreens. look footprint. And under sales to how at to positively, growth, do the there what well both as they're

experimenting front they that the end, delivering higher segment to And has it, continues that as And closer be the the rest on using already is On the trying how that on healthcare. best as sub retail to well. and illnesses, And acute genesis that of they had figure chronic That more stated of will should the is products? the formats why side to available? continues be to margin beauty is do operators to will provide the Aetna the believe, And being footprint, they're that be merged, that continue well we we much piece to of will focusing figure and not and they a footprint services. is to way cost was all well the are services, Another but lower for to consumer, both believe certainly one CVS we eventually. how out, the these out are different with two cetera. to it to out has reasons as of healthcare provide et played that do

Nick Yulico

That's within exposure? And any I then terms just less sub-sectors helpful. guess to where like in would you Okay. of have retail

Sumit Roy

driven A area focus our there discretionary with. dining continue furniture around industries are by a cetera, casual portfolio to off, total stores and very that in kiosk are profiles. certain dispose with love dispose be are format portion sporting we as on. right Those XXXX-plus today, XXXXs to bucket are child shifted story cautious business, trying asset which that to tickets have like that's and at we've et discretionary the positive flow We be square very but continue have we're good lottery foot area care on to and an centers. the full demographics convenience that focus the we have area We don't and other retail in that And years us cautious And the C-store worked but invest for it's the been watch years concepts have types assets of to are that our business, to regards of continues closely. seem ago. like the used more very demographically return ones we are seem worked the that have the in. such ones the some represent X%, very sub-X%. other neighborhoods these the we where ones from Look, but of product those similar kiosks and business. and trying actively very, and that to in format to of Anything And to these then list products tobacco Yes. XX store essentially very to goods falls are child and an like sell that we we the of to, are gone to It cash happy on an But much we XX that ago care that at very looking that types we certainly looking but off. And today. either work cycle, exposed large are are large again C-stores.

to exposure at are minimize that I the area that's say we our or trying to either all. in invest would that So not

Nick Yulico

Thank you.

may. one question last I Just if

you without activity rents? give leases the about a vacancies. rate, it had says a you page XX% four more have bit markdown leasing where on On in the you little And it's you detail essentially give supplement recapture could the in the where

you I'm at rent? released lower just it wondering had a I if you tenant, a So why why guess

Sumit Roy

for the the of you're assets always up atypical. decided Well, is scenario And not looking those with at it. come And to to ones where tenant are assets stay. trying selling us those or not releasing vacant and those it economic the

for out XXX% even have around profile. are that that rates as this with was so trying XX% had even in If drive assets fact tenant you them and supplemental, to But us way our And look in still the those tenants, in outcome recapture go you because zero overall of product exercise back the really or have vacancy to that. they came lease out drop it's growth really those the is doesn't at almost XX% vacancy a recapture zero underwrite, of than taking have at proves positive have tenants recapture We the better you're sub-XXX%, vacancy, rate. to the when and right by economic choose assets to trying And much existing to tend exercise for rate it driven sometimes can a existing with our or to investment. spread make crux vacant. is that when sure a best analysis what it options are always proves a dollars those we of to we the with continues see, leases attract to to that's with behind situations to that's additional be the new to sell least trying be that that at options. And largely us relevance the to story that no options, retail

Nick Yulico

you. appreciate it, Okay, thank

Sumit Roy

Sure.

Operator

will question Janney. ahead. from Stevenson go next come of Please Rob Our

Rob Stevenson

guys. Good afternoon

on follow-up Nick's Just question.

you vacant sort in what's the XXX portfolio. versus guys of the expect mean I roughly for there's between market assets So the retenant what mix sale?

Sumit Roy

mix XX% look of say existing you by if have we it comes to of historically selling. and end XX% shifted. leasing lease to XX% roughly, to tenants tenant. new that every exercised X% leases XX% for up gets I up been the More we end would speaking, remaining that at It's recently renewal the up

in of the for cases it, is this those And superior Nick's into to that because going lot assets make vacant in vacant play well at it on north why we a is we frictional are recapture to on is reposition We X% we more our and dispose expiring vacancy we that believe off active as our than management asset because outcome levels are that them to path down because repositioning vacant. sense. question, to and of feel is assets, assets are economic tending it where rate we holding the for does of assets either some have two and it comes around and rate and can of these superior potentially them time some that retenanting that we months take holding selling releasing economic areas it holding said rents. to is the or believe XX releasing we like the is right happy because and recapture But assets don't years which actually to those

Rob Stevenson

Okay. or casinos What's in portfolio? the on adding thoughts your assets hotel

Sumit Roy

There obviously as to space thesis a have pursuing about in question. asset they're into to are entering that anything feel are casinos. We that monitor Good We suited this well don't dedicated at do that to will but really we we players whether type, like very the front. pursue strategy. our point

Rob Stevenson

well? as hotels And

Sumit Roy

Yes, both of bucket. same the in I would put them

Rob Stevenson

guys. thanks Okay,

Operator

Collin next of Raymond will Please come Mings question James. Our from go ahead.

Collin Mings

in? Great, to opportunities opportunity your where Last platform. international of guess, grow could a fit you there thank well? an Where take want the in provide Europe, you. as any to evaluating you you lot week Canada Are detail I

Sumit Roy

alternative the based UK the here profile. then at of behind we've well available product ones go was the to why detail, wanted do given the Europe. of the mean into wanted to that not we've always in in in the understood economic the they that looked mainland all the chose We've the pencil the look, we we pencil economics especially and We've one as And it reasons potentially been the to what haven't make and that main geographies itself Collin, sure and current pursuing thesis fact been why into you is to economics. very countries because looked that pursue able we product it's to border and But Canada. been And that provide I well these the US. lends pencil on to have at south is environment

us what is truly to space anything this to introduce along paths if pursue, we new think lines same about, as it to of you if know, way change the to needs so have we the of of going to of for And you're why going or the portfolio. presented any be you're we sort level chose

long was but with past certainly product way out haven't Canada so find and that, if that right pursue been of a And drawn right the the we we to economic the is absolutely will countries answering looked along, have one able comes yes, one profile we in yet. the this of it, at and

Collin Mings

an now Okay. push like that international sound bigger It doesn't you've necessarily is to go that platform in that there's established any direction, fair?

Sumit Roy

we've the are that it. fact that done, to open now we're of It's doing more people aware

not I would Collin. entirely that's that fair, So say

completely We that a And, inbound ready was not respond have team was those has are That as is getting calls. a lot expected and may expected the we changed. weren't we potential aware the player dynamic to perhaps to so more that in certainly which calls here transactions and people because were seen past.

will tell. time So,

Collin Mings

there. Great. very helpful actually That's clarification

notably. Just switching the Dollar any can tenant second was there's top point? and huge just that investment there somewhat roster as activity talk moves Stores and about to kind General in Maybe a as quarter, additional really there far on just you your then obviously provide exposure color the property, this at take if up just of, Dollar weren't during overall

Sumit Roy

small we that of Yes. parts of A portfolios it lot was acquired.

the operators around that had operators are to like that bit And is specific our that Family than with is but we with. profile. Dollar, filling of to signs Having those trends, now right that, right expected both outstanding think those X.X%. grow unfold I business well General. its the our all right Tree we the continue market mission Dollar propitiously and way that's Tree sort taken a are to Both mind. growth to continue piece? We to want any to of they on said with very are in will Dollar exposure and Absolutely, and operators partner that Dollar longer two us of has a are that

to We of assets will are to leases type terms But with tend those actively triple-net in nature absolutely like continue Dollar assets be the Tree pursue. Dollar, type these the Family going we that not pursue development-driven to look to not Dollar to General, grow we of the that. to right because of

Collin Mings

Okay. you for much Thank very the color.

Operator

Our MUFG Karin will Ford go come next of question Securities. from ahead. Please

Karin Ford

good in you on your Hi, afternoon. with should see was the initiative expect out or Sumit, plate enough you wondering, still verticals we announced? this the I year US to broaden international like do that you have feel your

Sumit Roy

week and Last trillion maybe huge to we you some you. some to Karin. other or now the for it, this is something think as with or out from do is not, remains avenues smiling, to and even three all $X to avenues a the step we and market again that of after as sure we front. I the to we the timing lend why next product is on And not theoretically is to choose the our and, that have does $XX that been continue But and come came we today exploring did week something It doesn't answer makes done I'm pursuing on seems I to are certainly these this we asked international before if to want with from us of if some to over potentially going obvious going This to will the increase be other right that uncertain are trillion shape of that explore But because paths does the what international big to even been potential or what And can do what a whether had preclude timing take may to a we something continuing month something not avenue that we quarter come those we itself share similar and last lot that year up sense. from actionable it foray with the our does be hope us. make next avenues months. and now question it's can't pretty explore. last will pursue diligence those we really and we to we've of I decide tell and becomes different.

that's question, down to tied So that Karin.

Karin Ford

second line. Understood. question the along is My Appreciate that. same

growth one initiatives You've and Is it the average the been strategic earnings the goals of volatility. has over with to below generated very historically? dividend years new growth push consistent of FFO than higher

Sumit Roy

pursuing. our sheet Look, only businesses goal expanding compromise was are investment think or potential I that that on to No. is to look continue here not remain are with types businesses Karin. idea pursuing set. the at the our of viable The to either we we mean, balance strategy I the profile those of the intact,

it that pursue with business. there is that then we're ourselves. the to it preclude designed that we I growth. show But from of compromise have this -- be we've we think where profile that products not most think That sort may believe don't this higher And people front. for or profile going to a believe sort we've for to tends to and volatility that it's the it's we to-- if us itself you for certain lend new mismatch looking on does of be to low-vol, to decide pursue in is particular in on if risk designed us that falls we fact of who of perception we growth to at I why higher that because avenues then dependable ourselves. invest And the us decide in us, us they invest that that, in line to

the than this So very, rather for of us that important nuanced and an but exercise, something output exercise growth us. is to really of driver this very is

Karin Ford

Thanks my questions. for taking

Sumit Roy

Sure.

Operator

next [Operator question go will from ahead. Massocca Ladenburg John Instructions] Thalmann. Our come of Please

John Massocca

afternoon. Good

Sumit Roy

John. Hi,

John Massocca

in investment-grade or maybe of similar as of in a assets sub-investment little mix that was lot to rated? return there down XQ the a risk-adjusted XXXX. this felt by better of aren't rated low bit Was were situation the versus just getting done stated maybe a it nine going you this you came quarter acquisitions Or after XXXX companies? months there and assets as you was where So, first percentage of kind what there's a a you've simply grade-rated

Sumit Roy

Yes. nature, were say our own to would rating figure we non-rated this them implied categorized a be given there rated. be them underwriting your if do bucket. obviously grade But purposes. fell out what for into our the I as we would of And sub-investment conservative that to lot

very investment the we it initial closed variable investment on they to a But high have a if and the and was non-investment to had the XX% bucket coverage people that in are products XX%, output is on north because high a it the the to, that often an industry a drop done. business and that just we of that on in cost again, be in have again industries really opposite belong has quarter, fall breakeven predictable that we tenants and that going are strategy that yield that ratio lot over and models closing on. but coverage just look, so, LifeTime they happens in we've that But ratios pursue growth what said assets us. private tenants very types sales rating. that's are of because to the first it's the first the grade-rated low-vol, we these put that we business quality has their this the that shared that happen Fitness, mentioned to like be, quarter that in the you, said Again, ended been they the of but output to compromise or business place profile we grade-rated that sorry, that the to And important somebody tenants well never -- and in up of we've that of have have a only I company breakeven really a have And portfolio we and that tenants it's is our sales grade-rated is way. a overall -- doesn't yet rent is drop that’s with

company is run quarter. S&P But to what would it would Sainsbury's It move going anything did, It's continue into is metrics but wouldn't next be around be of look going to if a not So the the non-rated investment-grade. a a that's there be have number. we to particular again, transaction and investment-grade grade, I that through the perfect credit that that you profile. Hopefully investment is that very part which rated it large won't model helps. example

John Massocca

leases expire. makes credit-driven on I maybe any of on sense. sup, heard color page that that you in little look kind the can you the I then, had tenant XX but What any of were provide of If number, If imply assets would there No, quarter? right, but around you not And XXX not vacancy XX a tenant because leases expiring color be just the so were that? of would it's know -- credit. because a huge that helpful. of or because vacant complete I there drove

Sumit Roy

to Happy address Sure. that.

from few of the -- assets most those of We expect have say XX-odd points back XX eight largely And come basis us. came assets to we to rent. Shopco them it were Shopco assets. to and us. want these I But is of And for second-generation

So completely some vacancies. those immaterial, but that definitely of XXX drove

John Massocca

appreciate I the That's me. from Thank you. color. it

Sumit Roy

Thanks.

Operator

of from Please Our MUFG question come Securities. will Ford go Karin next ahead.

Karin Ford

refinance year just equity? the paper Paul. you balance program are Any commercial And considering forward a quick one later on Hi, for the line plans one deal? with to or this bond

Paul Meurer

was Yes. new to Well, that for for earlier, a obviously potential issue given capital investor, that as the material compelled QX, example. in Sumit commented Sainsbury's we new we not information felt thinking equity

end amount had we addition, last of fair In capital of year. raised a

So available today $XXX we relative don't but balance, need feel And near per liquidity. to compelled for plenty of have of of a all million term so sort. billion line, a capital that pipeline forms is to capital to that se $X here the anything relative acquisition with We us. we plus it sit or in our are

as the each the part by So, now. of unsecured about mix. Typically bonds. are equity year-end our be priced is be equity, going right are thinking we bonds, really considering Bonds well to remainder would and plus of let's two-thirds something, say, certainly mix

the near So considering. kind that we part looking possibly that it of that and And see is in of to think it the into something list are very we paper, in. new immediate And a could of won't commercial term. it's definitely future, see ideas you our as it's of part I on relative but

Operator

call the Income's now This Roy turn of remarks. for call. concludes the concluding Realty Sumit question-and-answer conference portion to I'll over

Sumit Roy

joining for everyone you seeing and you everyone NAREIT. ICSC in Thank to us in at summer Thank today. look weeks We forward everyone. a few the at

Operator

you for participation. This concludes your today's Thank conference.

now may disconnect. You