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 |
|---|
| We are very pleased with second quarter results |
| So all of these are really solid businesses |
| This is the highest cash cap rate and second highest economic yields we have achieved in the last 8 quarters, and higher than those achieved in the second quarter of 2022 by 129 and 180 basis points, respectively |
| The strength and diversification of our tenants, the industries they operate in, and the quality of our real estate portfolio, combined with better-than-anticipated investment spreads are allowing us to surpass our previous forecast and revised our AFFO per share guidance upward for the second time this year |
| But I'd say our guidance, we feel good about where it is right now |
| But I'd say overall, we feel very, very good about the health of our portfolio |
| It's a very good quarter, and we're quite enthusiastic about what we see right now |
| And so we feel really good about their very sophisticated and they're good operators |
| But we do feel like the way our balance sheet is locked in, the yields and spreads that we're producing we can produce better growth going into '24 |
| And so what I can tell you, we're seeing is the companies are doing better than people expect |
| And so thing that's most encouraging for us is we're seeing really good real estate opportunities, good credit opportunities at what we believe are attractive cap rates |
| The things that we’re seeing are just, in my opinion, very, very solid real state investments |
| which I think is encouraging from what we're going to do |
| We don't break it down every quarter, but I can just tell you, it's increasing and we're getting better investment opportunities from existing owners and operators within our account base |
| Occupancy remained high at 99.8% and our acquisitions and dispositions were accretive to our earnings and portfolio metrics, including Walt and lease escalations |
| Of course, from time to time, you'll focus on particular tenants but I feel like our industries are mix right now are ideal and we've got a really good balance of retail, mission-critical industrial, industrial outdoor storage |
| But we feel like we have a good plan for going forward |
| So it's kind of a give and take, but it's a very positive 1 for us |
| One of the deals that we did this past quarter was for a distributor of original OEM parts for the automotive industry, very, very successful business, very sticky business |
| – at really attractive price per square foot |
| So the sale-leaseback opportunity is really a great source of liquidity and really it's right in the middle of what we're trying to accomplish |
| We're pretty bullish about next year given that all of our debt is fixed at free low rates |
| We will maintain a disciplined approach to our investments poised to seize the most favorable opportunities that will yield optimal returns for our shareholders |
| if we can lighten up on movie theaters, I think we would do that, as I've said in the past, but we're in no rush because our movie theater tenants are extrude and are doing well |
| We have a good disposition program |
| So -- but that's encouraging for us |
| We really like some help on the equity side to grow more and faster |
| Jackson, despite comparable operations on a solid balance sheet, the stock continues to trade one of the lower multiples and higher dividend yields in the peer group other than maybe increasing the industrial exposure or the IG tenant base |
| The industrial is very, very well diversified |
| And so we believe that we have a plan that can demonstrate the ability of our team as well as the performance of our underwriting and the real estate assets and tenants |
| Statement |
|---|
| Our cash G&A margin fell to 5.3% and approximately 30 basis points lower than full year 2022 |
| Clearly, there's challenges in the debt markets, corporate debt markets, bank markets, very selective |
| There's real manufacturing happening I still think that labor is still an issue for some of our tenants that are in that manufacturing sector in terms of getting people on the job to procure and finish out items that are being manufactured |
| which also puts a little pressure just on a quarter-over-quarter AFFO per share |
| That was another small operator one-off that is running some issues that we put on a cash basis last quarter |
| Obviously, and we don't have a lot of worse |
| Ken Heimlich Credit watch list continues to be very manageable |
| But for the back half of the year, we do have, again, some rent disruption built in consistent with our guidance we put out at the beginning of the year |
| There's some other kind of issues that might be affecting them |
| Can you -- I think you mentioned it, but what was the lease termination in the quarter? I'm just trying to understand in your guidance for the second half of the year, it implies a little bit of a drop-down from the $0.91 you reported to about $0.89 |
| So we have largely been pleasantly surprised with the creditworthiness of the portfolio at this point |
| They're not the best |
| I feel like there's a little bit less competition in the industrial space that we're focused on right now |
| That caused us around to $0.91 |
| How do you think about the level of earnings growth this can support? Michael Hughes It's interesting because this year, we were hit with some pretty big interest headwinds, interest rate headwinds for the step up from last year |
| Although we believe these forward-looking statements are based on reasonable assumptions, they are subject to known and unknown risks and uncertainties that can cause actual results to differ materially from those currently anticipated due to a number of factors |
| But obviously, everybody, I'm sure, has seen |
| But -- at the end of the day, I would submit that our path from Party City really confirms what we've always believed in, you vested in mission-critical real estate you turn out everything turns out okay, we have had 0 disruption in any of our lease obligations, be it rent, taxes or anything |
| So I think some companies probably sat on the sidelines, hoping things might get better |
| there some conservatism built in there |
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