Financial Data and Key Metrics Changes - The company raised its full-year AFFO guidance, expecting mid-5% year-over-year growth, which is among the highest in the net lease sector [3] - AFFO per share for Q3 was $1.25, a 5.9% increase year-over-year, with full-year AFFO expected between $4.93 and $4.99 per share, implying 5.5% growth at the midpoint [11][12] - The company completed $1.65 billion in investments year-to-date at an average initial cap rate of 7.6% [6][11] Business Line Data and Key Metrics Changes - Same-store rent growth was 2.4% year-over-year for the quarter, with expectations for 2.5% growth for the full year [13] - The company expects to achieve better than initially expected disposition cap rates and attractive spreads from asset sales [4][12] - The majority of investment volume was in warehouse and industrial properties, representing over three-quarters of total investments [6][7] Market Data and Key Metrics Changes - The company noted a significant number of opportunities in the U.S. market, while also increasing investment volume in Europe [7][39] - The investment activity in Europe has seen a notable increase, with a split closer to 50/50 between North America and Europe in Q3 [39] - Cap rates have remained stable year-to-date, with expectations for some tightening as the company heads into 2026 [40][62] Company Strategy and Development Direction - The company plans to allocate more capital to capital projects, which historically averaged 10% to 15% of annual investment volume [8][9] - The company aims to maintain a strong investment pace into 2026, supported by a robust pipeline and liquidity [21][52] - The company is focused on maintaining competitive advantages in Europe through established relationships and local expertise [7][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, with an active deal pipeline extending into the first quarter [21][22] - The company has seen improvements in credit quality and expects strong earnings growth despite ongoing caution regarding specific tenants [34][70] - Management noted that the net lease market remains competitive, particularly from private equity players, but believes they can compete effectively [29][30] Other Important Information - The company ended Q3 with approximately $2.1 billion in liquidity, providing flexibility for future investments [19] - The company increased its quarterly dividend by 4% year-over-year to $0.91 per share, reflecting strong earnings growth [19] Q&A Session Summary Question: Update on operating self-storage asset sales and future capital sources - Management indicated that equity will play a larger role in funding next year, with dispositions returning to a more typical run rate [28] Question: Competition from private net lease platforms - Management acknowledged increased competition, particularly from private equity players, but believes their experience and track record provide a competitive edge [29][30] Question: Status of Helveg leases and expected terminations - Management reported progress in reducing exposure to Helveg, with several leases signed or in process [32][33] Question: Sustainability of same-store rent growth amid inflation changes - Management expects contractual same-store growth to remain strong, supported by higher fixed increases on new investments [44][47] Question: Cap rate expectations and differences between U.S. and Europe - Management noted that cap rates have remained stable, with slight tightening expected in Europe due to earlier rate stabilization [62][64] Question: Visibility on 2026 and 2027 lease expirations - Management confirmed that virtually all expiring ABR for 2026 and 2027 is actively being worked on, with manageable levels of expirations [80][81]