Financial Data and Key Metrics Changes - The company reported an AFFO per share of $0.31 for Q4 2025 and $1.25 for the full year, achieving the high end of guidance [23] - The company expects to revise its AFFO per share guidance for 2026 upwards to a range of $1.27-$1.32, representing a 4% growth at the midpoint and 6% at the high end [23][24] - The annualized adjusted cash NOI was $61.3 million, reflecting a 96% margin on the in-place portfolio, with expectations to expand to 97% in 2026 [20][24] Business Line Data and Key Metrics Changes - The company acquired seven properties for approximately $41.3 million in Q4 2025, with a weighted average remaining lease term of approximately 13.1 years [5] - In 2025, the company acquired 32 properties for approximately $124.1 million, with an average cash cap rate of 7.74% [5] - The company sold 11 properties for $20.4 million during Q4 2025, with an average cash cap rate of approximately 6.82% [11] Market Data and Key Metrics Changes - The company’s properties are located in retail nodes with average daily traffic exceeding 24,000 cars, with 78% located within the top 100 MSAs [18] - The average five-mile population around the properties is 184,000, indicating strong market presence [18] Company Strategy and Development Direction - The company focuses on a real estate-centric strategy, acquiring frontage-based assets in major retail nodes [3] - The company aims to build a best-in-class net lease REIT, differentiated by a real estate-first investment strategy [24] - The company plans to optimize its portfolio further, expecting a decline in the pace of dispositions as most optimization occurred in 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s operational strength and financial resilience, stating it is better positioned than ever since going public [3] - The management highlighted the importance of portfolio performance and timing of acquisitions and dispositions in achieving the high end of AFFO guidance [26][27] - Management noted that the acquisition market remains open, with expectations for acquisition cap rates to settle around 7.5% in Q1 2026 [10] Other Important Information - The company ended the quarter with occupancy approaching 99%, with only four vacant assets [13] - The company has two tenants in bankruptcy, representing a combined 0.56% of ABR, and is actively working to maximize value through re-leasing [14][15] - The company has a low dividend payout ratio below 70% and a loan-to-value ratio of 34.5% [17][22] Q&A Session Summary Question: Can you help us understand the difference between the $1.32 and $1.27 AFFO guidance? - The difference is primarily based on portfolio performance and the timing of acquisitions and dispositions [26][27] Question: Have you received any outside interest given the persistent discount to NAV? - There has been quiet interest, but the company acknowledges the disconnect between stock price and NAV [28][29] Question: How do you prioritize initial yield versus contractual bumps and lease length in acquisitions? - The company focuses on location, market rent, credit, term, and escalations, with escalations averaging about 1.2% for the quarter [38][39] Question: What is the expected pace of deployment for acquisitions in 2026? - The company expects to deploy approximately $25 million net in Q1 and similar amounts in Q2, with potential for adjustments based on portfolio performance [80]