Financial Data and Key Metrics Changes - The company raised its full year 2025 AFFO guidance to $1.48 to $1.50 per share, reflecting a 4.2% growth at the midpoint, with a second quarter AFFO per share of $0.38, representing a 5.6% increase compared to 2024 [4][34] - Year-to-date bad debt totaled 45 basis points, and the bad debt reserve for the remainder of the year was reduced from 125 basis points to 75 basis points [34][80] Business Line Data and Key Metrics Changes - The company has invested approximately $262.2 million in new property acquisitions, build-to-suit developments, transitional capital, and revenue-generating CapEx [24] - The build-to-suit pipeline includes eight projects totaling over $370 million, expected to generate $28 million of new incremental ABR through 2026, representing a growth of 6.9% off the current ABR [15][26] Market Data and Key Metrics Changes - The company reported a 99.1% lease rate at quarter end, with only two of its 766 properties vacant, and collected 99.6% of base rents due for the quarter, a 60 basis point increase compared to Q2 2024 [31] - The company has closed $113.7 million in new property acquisitions with a weighted average initial cash cap rate of 7.2% [30] Company Strategy and Development Direction - The company is focused on a differentiated growth strategy, emphasizing build-to-suit projects and relationship-based acquisitions to mitigate competition [15][56] - The management team has successfully repositioned the portfolio, reducing clinical healthcare exposure to 2.4% of ABR, while still growing AFFO per share [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through tenant credit events, citing successful resolutions in the past [8][80] - The company anticipates attractive mid-single-digit AFFO per share growth in 2026 and beyond, supported by a strong portfolio and committed pipeline [20][21] Other Important Information - The company plans to host an Investor Day on December 2, 2025, to discuss its differentiated strategy and preliminary guidance for 2026 [22] - The Board of Directors declared a $0.29 dividend per share, payable on or before October 15, 2025 [34] Q&A Session Summary Question: Plans for incremental developments in 2025 - The company still aims for $500 million in incremental developments in 2025, focusing on long-term growth [39] Question: Details on acquisitions under control - The acquisitions under control are primarily industrial deals with expected cap rates around 7%, and most are anticipated to close in the third quarter [44][45] Question: Impact of accelerated depreciation on deals - There has been excitement in the market regarding accelerated depreciation, particularly in sectors like car washes, which may drive additional deal flow [48] Question: Competition in build-to-suit projects - The company is not filtering out opportunities but is focused on maximizing the number of deals to choose from, ensuring the best risk-adjusted returns [50] Question: Insights on bad debt guidance - The reduction in bad debt guidance is due to positive resolutions with tenants like Zips, At Home, and Claire's, along with strong performance from the rest of the portfolio [79]