Financial Data and Key Metrics Changes - The company generated $1.49 of AFFO per share for the full year 2025, representing a 4.2% year-over-year growth [6][24] - The portfolio ended the year 99% leased with 99.8% of rents collected, maintaining solid performance [6] - Lost rent totaled 31 basis points for 2025, down from 67 basis points in 2024, indicating improved portfolio stability [24] Business Line Data and Key Metrics Changes - The company deployed $748.4 million in investments, including $429.9 million in new property acquisitions and $209.3 million in build-to-suit developments [6] - New property acquisitions had a weighted average initial cash capitalization rate of 7% and annual rent increases of 2.6% [7] - The company completed 19 lease rollovers during the year, achieving a weighted average recapture rate of 110% [19] Market Data and Key Metrics Changes - The company observed healthy activity in the transaction market, particularly within the industrial property segment, although pricing levels did not always align with targeted risk-adjusted returns [18][19] - The company is cautious regarding tenant credit, considering broader economic conditions and sector-specific constraints [19] Company Strategy and Development Direction - The company’s strategy is built on three core building blocks: solid portfolio performance, a pipeline of committed build-to-suit projects, and stabilized acquisitions [5] - The company aims to maintain a pipeline of $350 million to $500 million in committed build-to-suit projects for the foreseeable future [18] - The company is focused on maintaining optionality for Project Triborough, evaluating various paths for investment opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management reiterated 2026 AFFO guidance of $1.53-$1.57 per share, indicating confidence in future growth [12] - The company is encouraged by improving market sentiment around REITs but remains frustrated with its relative valuation [14] - Management expressed optimism about the build-to-suit strategy providing long-term growth and value creation [5][12] Other Important Information - The company raised a small amount of equity under its ATM program, totaling approximately $43 million [14] - A quarterly dividend of $0.2925 per share was approved, reflecting a 1% increase over the prior dividend [27][28] Q&A Session Summary Question: Competitive landscape for build-to-suit opportunities - Management noted no significant increase in competition for their targeted deals, emphasizing their relationship-based sourcing strategy [32][33] Question: Context around Project Triborough's power delivery - Management indicated that initial power delivery is expected to be in phases, with the first phase being 300 megawatts [35] Question: Use of proceeds from potential UNFI sale - Management stated that proceeds would be used opportunistically, with a focus on timing rather than a specific mix of deployment [39] Question: Internal growth expectations for 2026 - Management suggested that a 2% annual growth rate is a reasonable assumption for internal growth [41] Question: Red Lobster exposure and potential actions - Management is actively looking to reduce exposure to Red Lobster while monitoring its performance and exploring mutually beneficial solutions [45][49] Question: American Signature lease negotiations - Management confirmed that there would be no change in rent levels during negotiations, maintaining a conservative approach to bad debt [50][51] Question: Build-to-suit pipeline and project announcements - Management confirmed a rolling target of $350 million to $500 million in active development, primarily from repeat business [55] Question: Capital recycling and asset sales - Management indicated that they are not forced sellers but are open to opportunistic sales, particularly of legacy assets [66] Question: Onshoring trends and industrial development demand - Management noted increased conversations around onshoring, indicating a potential long-term tailwind for the build-to-suit pipeline [81] Question: Casual dining sector commentary - Management emphasized that performance varies significantly by operator, with no active strategy to add more casual dining investments [84]