Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Most importantly, we remain nimble and opportunistic ensuring we are well positioned to capitalize on the opportunities as we uncover them |
| To summarize, we are very well positioned to execute in 2024 to drive sustainable earnings and a growing and well-covered dividend |
| We also demonstrated our ability to access attractive bank debt with a market-leading $350 million 5.5-year term loan at a fixed rate of 4.52% inclusive of prior hedging activity |
| We have improved and made our processes more efficient |
| But I'm 100% confident that the team will continue to be able to uncover opportunities across all 3 external growth platforms that provides outsized returns relative both to the market and hopefully, our own internal expectations |
| We believe in consistency, reliability and quality of cash flows will ultimately lead to outperformance |
| Our capital markets activity further fortified our balance sheet and positioned us for continued growth in 2024 |
| I'll tell you to the retailers in our portfolio are generally doing really well and are really healthy |
| I think we have a proven track record now of not only being correct in our retail predictions and about the concerns in an omnichannel world but we also have the balance sheet management, the earnings growth profile to, frankly, to bank on |
| Our fortress balance sheet is paired with a best-in-class portfolio and our record investment-grade exposure of over 69% provides for highly durable cash flows in today's dynamic environment |
| I said just to repeat, the change of rate hike is probably better than this year is probably better than the chance of a rate cut in March |
| Our consistent and reliable earnings growth continues to support a growing and well-covered dividend |
| In addition to our strong liquidity position, free cash flow after the dividend is now approaching $100 million on an annualized basis |
| The strength of our balance sheet and the quality of our portfolio are evidenced by the positive outlook that S&P placed on our BBB credit rating last week |
| We believe that our credit metrics are emblematic of a higher rated company and the positive outlook is another step in gaining recognition for the manner in which we operate our company and manage our balance sheet |
| Spenser Allaway Given that you guys have capital locked in and as you mentioned, you have a very strong liquidity position |
| I'm pleased to report that 2023 was another strong year for our company |
| Sale leasebacks represented 1/3 of our acquisition activity in 2023, compared to just over 10% in the year prior, further demonstrating our ability to be a full-service comprehensive real estate solution for our retail partners |
| We continue to leverage all 3 external growth platforms to find compelling risk-adjusted opportunities |
| It is the strongest retail portfolio, I think, without exception in the country and most investors and analysts would agree |
| The team here has tremendous relationships and credibility with retailers |
| And again, our investment-grade exposure reached a record of over 69% |
| With over $1 billion of total liquidity, including the outstanding forward equity raise in the fourth quarter, we have ample runway and complete optionality |
| We have a 5-year CAGR of 6% AFFO growth while qualitatively improving the portfolio to now approaching 70% investment grade and 12% ground leases |
| But as I mentioned, our focus is on improving those cap rates very significantly on a relative year-over-year basis |
| But if you look at our portfolio today, the retailers are really doing well |
| LingLong has over 25 years of experience, technology and leadership and we're truly excited to add our expertise to our esteemed Board of Directors |
| The days of free money and ubiquitous capital were behind us which made a strong and strategic change in capital allocation philosophy |
| I think that is a very compelling case in today's environment to invest in ADC |
| Looking back on the past year, we executed several strategic initiatives that positioned our company for continued success |
| Statement |
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| We're just starting to build transaction volume for Q1 will be down year-over-year relative to Q1 undoubtedly |
| While the performance of our stock has certainly been frustrating, we have not wavered |
| We saw something very specific with Walgreens in context of the pharmacy space, the degradation of the front end, the constant need and desire to do M&A to increase store count which didn't make sense to us the failure of Walgreens to repurpose the front end of the store with their attempts at beauty and fragrance -- their attempt to -- we saw that very specifically |
| This past quarter, we worked through significant market turbulence and ultimately invested nearly $200 million in 70 high-quality retail net lease properties across our 3 external growth platforms |
| So I think looking forward, again, we'll see what type of normalcy we get or stabilization we get in the underlying macro -- it's -- it's very difficult to predict and possible for us |
| So it's very difficult |
| Is it fair to assume maybe a comparable amount going into 2024 for a total amount of development? Joey Agree We are consistently and constantly answering the phones and responding to inquiries from merchant developers from retailers, from all different types of constituents given the lack of liquidity out there in the construction lending market and the lack of ability for merchant builders to develop net new stores |
| So Joey, you've talked a lot or very often about the lack of visibility 70 days However, you have been able to provide -- despite that lack of visibility as sort of a guidepost at least for acquisition volume |
| Why not provide some formal acquisition guidance at this time? Joey Agree So I think, first of all, we're in an extremely volatile macroeconomic environment, including interest rate volatility here that's going on |
| Since then, obviously, the volatility has got some consternation -- some hope amongst borrowers that kind of vacillates back and forth |
| We had 1 big loss that didn't renew |
| I understand that we are in a volatile capital markets environment |
| It's difficult at this point to predict how much scale we'll see in 2024 but we do anticipate that G&A as a percentage of revenue will continue to come down |
| The first is, can you talk a little bit on the competition environment today for the IG focused market? And you mentioned like transaction volume is kind of low, like this year |
| We've been talking about Walgreens now for years, reducing our Walgreens exposure to an inconsequential number, watching CBS overtake Walgreens in the pharmacy space |
| While at the time, many thought our mindset was conservative, we were confident that while interest rates rose rapidly, cap rates would be slow to exhibit expansion in our large illiquid and fragmented space |
| Again, without sacrificing credit quality |
| But if you compare on a year-over-year basis, is that like getting worse or it's actually better than last year? Joey Agree Competition in our specific sandbox is really hit or miss, right? There are the random and infrequent [ph] or high net worth individuals |
| Since your last equity raise, obviously, your stock price has drifted slightly lower |
| Will you repeat the second part of that question? Linda Tsai Just how easy it is to -- or difficult to achieve this and its sustainability? Joey Agree Not easy |
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