Financial Data and Key Metrics Changes - The company reported a net income of $621,000 or $0.01 per diluted share for the third quarter [4] - Core FFO for the quarter was $26.4 million or $0.31 per diluted share, while AFFO was $28 million or $0.33 per diluted share, reflecting a 3.1% increase over the previous year [4] - Total recurring G&A expenses increased year over year to $5.1 million due to normalized staffing levels after restructuring [4] Business Line Data and Key Metrics Changes - The company maintains an industry-leading occupancy rate of 99.9% with no material tenant disruptions [2] - The portfolio generates over 62% of its ABR from tenants with investment grade ratings or profiles, with only 2.7% of ABR expiring through 2027 [2] Market Data and Key Metrics Changes - The company completed a follow-on offering of 12.4 million shares in July, raising $209.7 million in net proceeds [5] - Total liquidity at quarter end was over $1.1 billion, consisting of $53 million in cash, $500 million available on the revolving credit facility, and $150 million of undrawn term loan capacity [5] Company Strategy and Development Direction - The company focuses on accretive investments in high-quality, necessity-based retail properties, emphasizing tenant quality and diversification [3] - The company is increasing its net investment activity range to $350 to $400 million from a prior range of $125 to $175 million for 2025 [5] - The company plans to opportunistically sell some assets to address potential credit issues [9] Management's Comments on Operating Environment and Future Outlook - Management noted softness in the lower and middle-income consumer segments and some noise in private credit markets but remains focused on high-quality investments [3] - The company expects to see a robust opportunity set for acquisitions going forward, driven by improved cost of capital and favorable market conditions [39] - Management anticipates that cap rates may compress slightly, with a potential decrease of 10 basis points expected [10][43] Other Important Information - The company had no credit losses in the quarter, maintaining best-in-class credit loss statistics [2] - The board declared a dividend on October 24, although specific details were not provided in the call [6] Q&A Session Summary Question: Insights on the most attractive opportunity set - Management indicated they are focusing on convenience stores, quick service restaurants, and grocery assets, with expectations for increased dispositions in the future [8] Question: Factors affecting 2025 AFFO per share outlook - Management explained that the timing of investment activities and treasury stock dilution uncertainty impacted the guidance, despite significant activity in the quarter [14] Question: Competition from private equity - Management noted that while private equity is entering the market, their focus on larger transactions does not significantly impact the company's strategy [32] Question: Update on auto parts exposure - Management reassured that recent bankruptcies in the auto parts sector are not expected to impact their tenants significantly [51] Question: Changes in lease structures due to competition - Management stated that there have been no significant changes in lease structures, with institutional capital seeking similar terms as public peers [55] Question: Strategic plans for reducing dollar store exposure - Management confirmed that they have made significant progress in reducing exposure to dollar stores and are being selective with pricing in the pharmacy sector [34]