Financial Data and Key Metrics Changes - The company reported a total revenue of $16.9 million for Q4 2025, with lease income of $12.7 million and interest income from commercial loan investments of $4 million [11] - FFO and AFFO attributable to common stockholders for the quarter were $0.54 per diluted share, representing a 22.7% growth over the comparable quarter of the prior year [11] - For the full year 2025, total revenue was $60.5 million, with FFO and AFFO attributable to common stockholders at $1.88 and $1.89 per diluted share, respectively, reflecting approximately 8.6% growth over the prior year [11][12] Business Line Data and Key Metrics Changes - The company acquired 8 properties for approximately $40 million in Q4 2025, contributing to a total of 13 properties acquired for $100.6 million in 2025 [4][5] - The weighted average initial cash cap rate for Q4 acquisitions was 6.9%, while the full year cap rate was 7.4% [5] - The commercial loan portfolio saw significant growth, with $177 million in loan originations for the full year at a weighted average initial coupon of 12% [7][8] Market Data and Key Metrics Changes - At year-end, the property portfolio consisted of 127 properties totaling 4.3 million sq ft across 32 states, with a WALT of 8.4 years and 99.5% occupancy [6] - 51% of the annual base rent (ABR) is now generated from investment-grade rated tenants, with Lowe's, Dick's Sporting Goods, and Walmart representing 29% of the ABR [6] Company Strategy and Development Direction - The company executed a strategic barbell approach to acquisitions, focusing on both investment-grade rated tenants and higher-yielding property investments [5] - The board decided to increase the quarterly common dividend per share by 5.3% to $0.30, indicating confidence in future earnings growth [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's outlook for 2026, citing strong investment activity and successful capital raises [10] - Initial earnings guidance for 2026 is set at $2.07-$2.11 for FFO per diluted common share, with investment volume expected to be between $70 million and $100 million [19] Other Important Information - The company ended the year with net debt to pro forma adjusted EBITDA of 6.7 times, down from 7.4 times at the beginning of the year [16] - The company has a liquidity position of $65.8 million, with potential total liquidity of $97.3 million at year-end [16] Q&A Session Summary Question: Can you discuss the loan portfolio and the 20% threshold? - Management indicated that the 20% threshold for the loan portfolio is reasonable and complementary to the company's core business, with room for an additional $25-$30 million in loans [22][25] Question: What is the status of reducing exposure to certain tenants like Walgreens? - Management confirmed ongoing efforts to sell additional Walgreens properties, with a focus on finding the right buyers [26][28] Question: How do you view the dividend increase in relation to earnings growth? - The increase in the dividend was driven by earnings and taxable income growth, with a focus on maintaining a balance between payouts and retaining cash flow [40][43] Question: What are the expectations for the investment opportunities in 2026? - Management expressed excitement about opportunities in both investment-grade and non-investment-grade properties, focusing on grocery-anchored developments and strong tenant relationships [45][62]

Financial Data and Key Metrics Changes - The company reported a 22.7% growth in AFFO per common share for Q4 2025, reaching $0.54 per diluted share, and an 8.6% growth for the full year 2025 [3][11] - Total revenue for Q4 was $16.9 million, with lease income of $12.7 million and interest income from commercial loans of $4 million. For the full year, total revenue was $60.5 million [11][12] - The company ended the year with a net debt to pro forma adjusted EBITDA ratio of 6.7 times, improved from 7.4 times at the beginning of the year [15] Business Line Data and Key Metrics Changes - In 2025, the company acquired 13 properties for $100.6 million at a weighted average initial cap rate of 7.4%, and sold 9 non-core properties for $38.4 million at a weighted average exit cap rate of 7.7% [4][5] - The commercial loan portfolio grew significantly, with $177 million in originations for the year at a weighted average initial coupon of 12% [6][8] - The property portfolio consisted of 127 properties totaling 4.3 million sq ft with a 99.5% occupancy rate and a WALT of 8.4 years [5] Market Data and Key Metrics Changes - 51% of the company's annual base rent (ABR) is now generated from investment-grade rated tenants, with Lowe's, Dick's Sporting Goods, and Walmart representing 29% of the ABR [5] - The company is targeting its commercial loan portfolio to run at approximately 20% of total undepreciated asset value, which would be around $155-$160 million based on year-end asset values [8][24] Company Strategy and Development Direction - The company continues to execute a strategic barbell approach to acquisitions, focusing on both investment-grade rated tenants and higher-yielding properties [4] - The board has decided to increase the quarterly common dividend by 5.3% to $0.30 per share, reflecting confidence in earnings growth and taxable income [10][19] - The company aims to maintain a 20% allocation in its loan portfolio, indicating a balanced approach to growth while ensuring core net lease properties remain the primary focus [31][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's outlook for 2026, citing strong investment activity and successful capital raises [10] - The initial earnings guidance for 2026 is set at $2.07-$2.11 for FFO per diluted common share, with expected investment volume of $70 million-$100 million [18] - Management noted that the revenue for 2025 included fees from managing third-party properties, which will not be a significant source of revenue in 2026 [18] Other Important Information - The company raised $50 million through a public offering of Series A preferred stock with an 8% coupon, and utilized ATM programs to raise an additional $18.3 million [9][12] - The company has no debt maturities for the next three years following the closing of a new unsecured credit facility [14][15] Q&A Session Summary Question: Can you discuss the loan portfolio and the 20% threshold? - Management indicated that the 20% threshold is reasonable and allows for complementary investments without distracting from core operations. The current loan portfolio stands at approximately $130 million, with room for an additional $25-$30 million [21][24] Question: What is the status of reducing exposure to certain tenants like Walgreens? - Management confirmed that they are actively working on selling additional Walgreens properties and are focused on finding the right buyers [25][26] Question: How do you assess the cost of equity and capital deployment? - Management stated that they will be prudent in deploying equity capital, primarily for high-yield investments, and emphasized that the current stock price does not deter their investment strategy [33][34] Question: What are the expectations for the dividend increase? - The dividend increase is driven by earnings and taxable income growth, with a focus on maintaining a balance between payouts and retaining cash flow [39][42] Question: What is the outlook for the loan pipeline and funding? - Management expressed confidence in the loan pipeline, indicating that they expect to maintain the 20% allocation and continue to redeploy capital as loans are paid off [49]