Financial Data and Key Metrics Changes - The company is actively engaged in recycling activities, with funding coming from asset sales and maturing loans, indicating a balanced approach to capital management [2][3] - The company has seen strong yields on loans, with a focus on maintaining earnings stability despite potential lumpiness in cash flows due to loan expirations [3] Business Line Data and Key Metrics Changes - The company is focusing on unique opportunities in various property types, particularly in retail, while also exploring short-duration opportunities outside of retail [7] - The luxury residential development in Austin is nearing completion, with lot sales expected to start soon, indicating progress in the company's development projects [12][14] Market Data and Key Metrics Changes - The company is monitoring properties leased to At Home, with plans for potential replacement tenants if needed, showcasing proactive asset management [38] - Recent loans have been issued at higher interest rates due to their short duration, reflecting the competitive landscape for such financing [39][40] Company Strategy and Development Direction - The company aims to focus on high-quality, credit-rated tenants and is strategically moving away from lower-rated tenants, as evidenced by the drop in credit-rated tenants in the portfolio [68][72] - The acquisition of properties like Lowe's is part of a targeted strategy to enhance the portfolio with high-quality assets, indicating a shift towards more premium investments [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline of high-quality assets and sponsorships, indicating a positive outlook for future earnings [3][50] - The company is committed to retaining capital for reinvestment rather than significantly increasing dividends, reflecting a focus on growth and asset allocation [64][67] Other Important Information - The company has sold significant vacant properties, which will reduce operating expenses, indicating effective cost management [15][16] - The company is actively managing its loan portfolio, with plans to sell portions of loans to optimize capital structure [22][27] Q&A Session Summary Question: How is the company thinking about funding recent investment activity? - The company plans to fund activities through asset sales and maturing loans, maintaining a balanced approach to capital management [2] Question: How does the company manage potential lumpiness in loan expirations? - Management is confident in replacing loans and maintaining earnings stability, citing a strong pipeline of opportunities [3] Question: What is the current status of the luxury residential development in Austin? - The project is nearing completion, with lot sales expected to begin shortly [12] Question: How is the company addressing the drop in credit-rated tenants? - The decrease is attributed to certain tenants losing their credit ratings, but the company remains focused on maintaining a high-quality tenant base [72] Question: What is the company's strategy regarding future acquisitions? - The company will focus on high-quality, credit-rated assets and is not looking to acquire lower-quality properties [31] Question: How does the company view its loan activity in relation to its overall strategy? - Loan activity has become a more permanent fixture in the company's strategy, providing higher yields compared to traditional net lease properties [49][50]

Financial Data and Key Metrics Changes - The company is actively engaged in recycling capital through asset sales to enhance the credit quality of its portfolio [2] - The company has seen a strong pipeline of high-quality assets and sponsorships, indicating a robust investment environment [3] Business Line Data and Key Metrics Changes - The company is focusing on retail properties but is open to unique short-duration opportunities in other property types, such as industrial [5] - The company has sold two major vacant properties, which will reduce annual operating expenses by approximately $400,000 each once the remaining property is sold [9][10] Market Data and Key Metrics Changes - The company is monitoring properties leased to At Home and is prepared to replace tenants if necessary, indicating a proactive approach to managing its portfolio [22] - The interest rates on recent loans have been higher than the year-to-date average due to their short duration and flexibility, attracting a different type of investor [23][24] Company Strategy and Development Direction - The company plans to focus on high-quality credit tenants and is not looking to acquire generic properties, aiming to differentiate its portfolio [19] - The company is actively looking to reinvest proceeds from asset sales into high-quality loans and properties, indicating a strategy of maintaining a strong investment profile [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to replace loans and maintain earnings, citing a strong pipeline of opportunities [3] - The company is optimistic about its future, expecting to deliver strong free cash flow and high earnings, while also being active in the net lease market [28][30] Other Important Information - The company has experienced a drop in the percentage of credit-rated tenants due to some tenants losing their credit ratings, but the overall credit quality remains stable [42][43] - The company is retaining capital to support growth and may implement minimal dividend increases to comply with REIT regulations [40] Q&A Session Summary Question: How is the company thinking about funding recent investment activity? - The company plans to fund activities through asset sales and maturing loans, balancing both sides of the capital structure [2] Question: What is the strategy regarding property types outside of retail? - The company will remain focused on retail but is open to unique opportunities in other sectors if they present themselves [5] Question: How will proceeds from asset sales be utilized? - Proceeds will primarily be reinvested into loans and properties, with some potential for debt reduction [7] Question: What is the current status of the luxury residential development in Austin? - The project is nearing completion, with lot sales expected to begin shortly [8] Question: What is the company's approach to managing vacant properties? - The company is actively working to sell vacant properties and reduce associated operating expenses [9][10] Question: How does the company view its loan activity moving forward? - The company sees loan activity as a growing part of its strategy, providing flexibility and higher yields compared to traditional net lease properties [30] Question: What is the outlook for the dividend? - The company aims to retain capital for growth, which may limit the extent of future dividend increases [40]

Financial Data and Key Metrics Changes - The company has been actively involved in asset recycling to enhance the credit quality of its portfolio, with some funding coming from asset sales and maturing loans [3][4] - The company is currently sitting at almost $200 million in total investments, with $135 million allocated to loans, although only $72 million has been funded so far [30][31] Business Line Data and Key Metrics Changes - The company is focusing on retail properties but is open to unique opportunities in other sectors, such as industrial, if they present themselves [10][11] - The company has sold a large vacant property, which had an annual expense run rate of about $400,000, and expects to see a reduction in operating expenses once another vacant property is sold [19][20] Market Data and Key Metrics Changes - The company has seen a drop in the percentage of credit-rated tenants in its portfolio, decreasing from 81% to 66%, primarily due to some tenants losing their credit ratings [78][81] Company Strategy and Development Direction - The company aims to reinvest proceeds from asset sales and loan maturities into high-quality loans and properties, while also considering a slight reduction in leverage [12][39] - Future acquisitions will focus on high credit quality tenants, moving away from generic properties [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline of high-quality assets and sponsorships, indicating a positive outlook for future earnings [6][62] - The company is not overly concerned about fluctuations in earnings due to loan expirations, as they have a robust strategy in place to manage these transitions [5][6] Other Important Information - The company has successfully reopened properties affected by a hurricane, with current rent coverage reportedly higher than pre-hurricane levels [42][44] - Management is actively monitoring properties leased to tenants like At Home and is prepared to replace them if necessary [49][50] Q&A Session Summary Question: How is the company thinking about funding recent investment activity? - The company plans to fund activities through asset sales and maturing loans, while also anticipating net growth from additional sales [3][4] Question: Will proceeds from asset sales be reinvested or used to pay down debt? - Proceeds will be reinvested into loans and may also lead to a slight reduction in leverage [12] Question: What is the current status of the luxury residential development in Austin? - The project is nearing completion, with lot sales expected to start soon [15][16] Question: What is the company's strategy regarding loan interest rates? - Higher interest rates on recent loans are due to their short duration and the flexibility offered to borrowers [51][52] Question: What is the company's approach to future property sales? - The company plans to continue selling lower-quality assets while reinvesting in higher-quality credits [39][38] Question: How does the company view its dividend policy? - The company aims to retain capital for asset allocation, which may limit substantial dividend increases [75][76]