Financial Data and Key Metrics Changes - The company invested over $725 million across its three external growth platforms in the first half of the year, representing more than a twofold increase compared to the same period last year [6] - The full-year investment volume guidance has been raised to a range of $1.4 billion to $1.6 billion, which is a 58% increase over the previous year's total investment volume [6] - Core FFO per share was $1.05 for the second quarter, a 1.3% increase year-over-year, while AFFO per share was $1.06, reflecting a 1.7% year-over-year increase [19] - The updated full-year AFFO per share guidance is now between $4.29 and $4.32, indicating over 4% growth at the midpoint [19] Business Line Data and Key Metrics Changes - In the second quarter, the company invested over $350 million in 110 properties, including $328 million in acquisition volume across 91 high-quality retail net lease assets [10] - The weighted average cap rate of acquired properties was 7.1%, with a weighted average lease term of 12.2 years [11] - The company executed new leases, extensions, or options on approximately 950,000 square feet of gross leasable area during the quarter, with a recapture rate of approximately 104% [13] Market Data and Key Metrics Changes - The company noted the highest level of retailer demand for new brick-and-mortar locations since the Great Financial Crisis, with nearly every retailer in its focus area looking to add new stores [10] - The investment-grade exposure stood at 68%, and occupancy rebounded to 99.6% after re-tenanting efforts [15] Company Strategy and Development Direction - The company aims to solidify its dominant market position through a best-in-class team executing hundreds of transactions annually across its three growth platforms [7] - The company is focused on core durable goods and necessity-based retailers, avoiding experiential and discretionary sectors [31] - The development platform is expected to ramp up significantly, with plans to break ground on a minimum of $100 million in projects before year-end [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's defensive nature and the ability to provide consistent earnings growth without increasing risk [7] - The management acknowledged a deterioration in consumer sentiment but emphasized that their focus on necessity-based retailers positions them well in the current environment [31] - The company anticipates that larger retailers will continue to gain market share, benefiting from their stronger balance sheets and ability to manage costs [33] Other Important Information - The company raised over $1 billion in capital year-to-date, with total liquidity standing at $2.3 billion [8] - The monthly cash dividend declared for the second quarter was $0.0256 per common share, representing a 2.4% year-over-year increase [23] Q&A Session Summary Question: Can you provide color on your ATM activity in Q2 and the timing of your overnight equity offering? - Management confirmed that ATM activity during the quarter predated the overnight offering in April and that they remained inactive in the capital markets post-offering [27][28] Question: What is the outlook for acquisition cap rates going forward? - Management indicated that acquisition cap rates could expand, with no new tenants targeted outside their established focus area [29] Question: How is the health of retailers and consumers currently? - Management noted a deterioration in consumer sentiment but emphasized that their focus on core durable goods retailers positions them favorably [30][31] Question: What opportunities do you see in the development business? - Management expressed excitement about the development pipeline, with plans to break ground on significant projects before year-end [39][40] Question: Is there an upper limit to investment in the development platform? - Management stated that while they have set a goal of investing $250 million annually in development, they are open to further investments as opportunities arise [60][62] Question: Can you provide an update on your watch list? - Management indicated that the watch list is minimal, primarily focused on a few movie theaters and previously mentioned retailers [90][92]