Federal Realty Investment Trust (FRT) Q4 2024 Earnings Call February 13, 2025 05:00 PM ET Company Participants Leah Brady - Vice President-Investor RelationsDonald Wood - President and CEODan Guglielmone - Executive Vice President, Chief Financial Officer & TreasurerJuan Sanabria - Managing DirectorDori Kesten - DirectorJan Sweetnam - Executive VP & Chief Investment OfficerJeffrey Spector - Managing DirectorAlexander Goldfarb - Managing DirectorGreg Mcginniss - DirectorKi Bin Kim - Managing DirectorFloris v ...

Financial Data and Key Metrics Changes - For the year 2024, the company reported an annualized base rent (ABR) of approximately $197.8 million, reflecting a 14.5% increase from $172.8 million in 2023 [20][21] - The adjusted funds from operations (AFFO) per share for Q4 2024 was $0.60, a 5.3% increase from $0.57 in Q4 2023, while the full year AFFO per share was $2.34, up 4% from $2.25 in 2023 [20][21] - The company achieved a fixed charge coverage ratio of 3.8 times as of December 31, 2024, indicating strong financial health [22] Business Line Data and Key Metrics Changes - In 2024, the company invested $289 million in high-quality convenience and automotive retail assets, acquiring 71 properties and providing development funding for new industry assets [7][8] - The investment activities were diversified, with 57% focused on non-convenience and gas property types, including express tunnel car washes and auto service centers [14][16] - The company reported a trailing twelve-month tenant rent coverage ratio of 2.6 times, indicating strong rent coverage across its portfolio [13][14] Market Data and Key Metrics Changes - The company expanded its presence in top metropolitan statistical areas (MSAs), with 60% of annualized base rent coming from the top 50 MSAs and 76% from the top 100 MSAs [13] - The investment activity in 2024 was characterized by a balanced approach, with convenience stores representing 41% of transaction volume, express tunnel car washes 33%, auto service centers 21%, and drive-thru quick service restaurants 5% [16] Company Strategy and Development Direction - The company is focused on a diversification strategy that has increased total ABR by approximately 70% since the end of 2019, with rental income from non-convenience and gas properties now accounting for 28% of total ABR [11] - The management emphasized the importance of a relationship-based sale leaseback strategy to generate continued acquisition opportunities in the convenience and automotive retail sectors [10][12] - The company remains committed to executing its growth and diversification plans while creating value for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management characterized 2024 as a challenging year for transaction markets but expressed confidence in the company's ability to source attractive investment opportunities [6][17] - The company anticipates modest cap rate compression from the 8.3% yields achieved in 2024, driven by larger portfolio transactions [17] - Management revised the AFFO guidance for 2025 to a range of $2.38 to $2.41 per share, factoring in potential rent adjustments and uncollectible rents [27][28] Other Important Information - The company disposed of 31 properties for gross proceeds of approximately $13 million in 2024, including seven properties for $7.5 million in Q4 [19] - The company has a strong capital position with $17 million in cash and over $280 million of capacity on its unsecured revolving credit facility, providing ample resources for future investments [24] Q&A Session Summary Question: Can you elaborate on the Zipps situation? - Management indicated that the seven sites in question were primarily new to industry locations and expressed confidence in re-leasing them without significant capital requirements [30][31] Question: Are there concerns regarding the financial health of other operators? - Management reassured that they maintain regular communication with tenants and are comfortable with their current car wash roster, emphasizing the focus on large, experienced operators [33][34] Question: How will the capital plan be structured moving forward? - The CFO explained that the company plans to use debt proceeds to pay down the revolver first, followed by utilizing equity for acquisitions throughout the year [38] Question: What are the assumptions regarding the potential downtime for the Zipps properties? - Management acknowledged a range of outcomes regarding downtime and rent recovery, emphasizing that they are capturing this variability in their AFFO guidance [42][44] Question: Can you provide more details on the recent portfolio transaction? - Management confirmed that the recent transaction is a direct sale leaseback and expressed intentions to pursue more such transactions in the future [46][47]

Agree Realty (ADC) Q4 2024 Earnings Call February 12, 2025 09:00 AM ET Company Participants Reuben Treatman - Senior Director of Corporate FinanceJoey Agree - President & Chief Executive OfficerPeter Coughenour - Chief Financial OfficerKi Bin Kim - Managing DirectorJenny Li - VP - REITs Equity ResearchRobert Stevenson - Managing DirectorSpenser Glimcher - Managing DirectorSheryl Kaul - Equity Research AssociateEric Borden - Vice PresidentFarrell Granath - Equity Research AssociateRich Hightower - Managing D ...