FCPT Q1 2026 Earnings Call Transcript

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DATE

Thursday, April 30, 2026 at 12 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — William Howard Lenehan
• Chief Financial Officer — Patrick L. Wernig
• Chief Investment Officer — Joshua Zhang

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TAKEAWAYS

• AFFO per share growth -- 3.4% increase, as management continues to emphasize "steady risk-adjusted growth."
• Q1 Acquisitions -- $26 million in net lease properties acquired at a 6.8% blended cash cap rate and a 7.3% GAAP cap rate; Q1 volume described as seasonally lower, with more activity expected in Q2.
• Annual Property Acquisitions -- $288 million of properties acquired in the trailing twelve months, reinforcing the company’s level of external growth.
• New Term Loan -- Secured $200 million of new seven-year debt at an all-in rate of 4.9%; $50 million drawn in April, with plans to deploy remainder through Q3.
• Portfolio Rent Coverage -- 5.1x for reporting properties and 5.8x for Garden properties in Q1, described by management as amongst the strongest coverage within the net lease industry.
• Top Tenants Same-Store Sales -- Chili’s reported 4% growth in the March-ended quarter, Olive Garden 3%, and LongHorn 7%; these three represent 40%-47% of portfolio rent.
• Bahama Breeze Update -- Ten properties comprise 1.3% of ABR; six to be converted to other Darden brands, with letters of intent active for the four remaining properties (0.5% of ABR); Darden obligated for rent payments for 1.5-4 years during backfill process.
• Portfolio Diversification -- 37% of rent now from outside casual dining, including automotive service (13%), medical retail (11%), and QSR (11%).
• Balance Sheet Position -- Net debt to adjusted EBITDAre at 5x, below the company’s 5x-6x range for seven consecutive quarters; fixed charge coverage at 4.8x.
• Debt Maturity Profile -- First maturity is $50 million of private notes in December, with no other maturities imminent; full $350 million revolver capacity available.
• Q1 Cash Rental Income -- $70 million, up 10%.
• Net Flow per Share -- $0.45, reflecting 3.4% growth.
• Annualized Cash-Based Rent -- $266 million with a weighted average five-year annual cash rent escalator of 1.5%.
• Cash G&A Expense -- $4.9 million, or 7% of cash rental income, reflecting a 70 basis point improvement from the prior year, and guidance for year at $19.2-$19.7 million.
• Lease Extension Progress -- 27 of 42 leases originally expiring in 2026 have been extended, with a 6% recapture rate above prior rent; remaining expirations now only 1% of ABR.
• Occupancy and Rent Collection -- Occupancy at 99.6%, with 99.7% of base rent collected for the quarter; management observed no material changes in collectability or credit reserves.
• New Disclosure Practices -- Company will now disclose GAAP cap rates alongside cash cap rates due to investor feedback and comparison requests, and will report AFFO per share growth without two-decimal rounding to improve accuracy.
• Board Appointment -- Michael Friedland, retired from JPMorgan, joined as Director, bringing three decades of real estate finance and credit expertise.
• Bad Debt -- Reported as "zero" for the year to date, despite monitoring small items across a 1,300+ lease portfolio.

SUMMARY

Management stated that the $200 million term loan will fund acquisitions through the third quarter, giving clear line of sight on capital deployment in the near term. The company indicated consistent above-peer rent coverage and "very low bad debt expense," positioning the portfolio to withstand sector challenges. Leaders highlighted selective expansion into new property types, guided by an explicit risk and knowledge framework, and a disciplined approach to managing both tenant concentration and underwriting standards. New disclosure practices on GAAP cap rates and improved AFFO per share reporting were introduced in response to investor comparisons and transparency. Competitive tensions in the acquisition market were acknowledged, but no evidence of private capital retrenchment was observed.

• Company representatives emphasized that contractual rent extension rates of 1.5% typify forward modeling, cautioning not to overweight the recent 6% mark on extensions.
• Leadership cited ongoing negotiations to backfill Bahama Breeze properties, reiterating Darden's legal rent obligations for all affected locations during transition.
• Response to investor feedback now delivers a side-by-side view of GAAP and cash cap rates to facilitate clearer peer comparisons.
• "We have had no major tenant credit issues," CEO Lenehan said, stressing continued resilience against macro headwinds among their largest tenant brands.
• The company applies a "triple filter" for evaluating entry into new property sectors, focusing on internal expertise, investor mandate, and willingness to allocate capital in alignment with management’s risk appetites.
• Term loan credit margin is 125 bps over SOFR, fully hedged through November 2027 at a 3.1% blended SOFR rate, keeping borrowing costs predictable amidst market changes.

INDUSTRY GLOSSARY

• Net Lease: A lease structure where the tenant pays rent plus some or all property operating expenses (taxes, insurance, maintenance), shifting operational risks to the tenant.
• Cap Rate: The ratio of a property’s net operating income to its acquisition price; often used to compare yields across real estate investments, with cash cap rate and GAAP cap rate differing based on accounting treatment of revenue and expenses.
• Adjusted EBITDAre: EBITDA (earnings before interest, tax, depreciation, and amortization) for real estate, adjusted for non-recurring items and used as a leverage metric in REITs.
• AFFO: Adjusted Funds From Operations; a REIT performance measure capturing sustainable, recurring cash flow after deducting capital expenditures and other adjustments from FFO (Funds From Operations).
• ABR: Annualized Base Rent; total current contractual rent from leases, annualized for calculation purposes.
• QSR: Quick-Service Restaurant; industry term for fast-food restaurant tenants.

Full Conference Call Transcript

William Howard Lenehan: Q1 marked a continuation of the momentum from 2025 and a strong start to 2026. AFFO per share grew by 3.4% versus the prior-year period, continuing our focus on steady risk-adjusted growth. During Q1, we acquired $26 million of net lease properties at a 6.8% blended cash cap rate, equivalent to a 7.3% GAAP cap rate. This is marginally lower volume versus the start of 2025, but I would emphasize we are seeing a lot of attractive opportunities and feel good about the strength of our pipeline. Seasonally, we tend to see fewer deals close in Q1 versus later in the year, and Q2 is shaping up that way so far.

Over the last twelve months, we have acquired $288 million of properties. We are also excited to have closed on a new $200 million term loan with seven-year tenor earlier this month. The term loan all-in rate is 4.9%, which represents 200 basis points of spread to historical acquisition yields. We will be able to invest that money accretively. Our rent coverage in Q1 was 5.1x for the majority of our portfolio that reports this figure. This remains amongst the strongest coverage within the net lease industry. The rent coverage figure for our Garden properties specifically is 5.8x. We have been very consistent, remaining above a very lofty 5x for the past three years.

As a reminder, the first tranche of lease maturities is due to send us extension notices by October. While we cannot know the outcome with certainty, barring a material change in the operating performance of lease sources, we would expect a very high renewal percentage for the spin-off portfolio in the coming years. To that end, our largest brands, Olive Garden, LongHorn, and Chili's, continue to be leaders within the net lease tenant universe. Most recently, Brinker reported Chili's same-store sales growth of 4% for the quarter ended March 2026 after a 31% increase a year ago. Olive Garden and LongHorn reported same-store sales growth of 3% and 7%, respectively, for the quarter.

Remarkable results for the three brands that represent 40% to 47% of our portfolio rent combined. To bring that point home, I will call out a new slide on page seven of our investor deck that shows the strong outperformance of our publicly traded tenants versus the generic all-restaurant index. The key takeaway is portfolio construction is extremely important. By being selective with our tenant partners, we are building what we believe is a fortress portfolio brick by brick. Our lead restaurant tenants appear to be taking market share and have not shown signs of slowing down. To that end, our portfolio has avoided some of the more problematic lease sectors experiencing long-term macro headwinds.

This includes theaters, pharmacies, and experiential retail more generally. We benefit from our strong portfolio construction with a low basis, fungible buildings operated by tenants and sectors that are e-commerce and recession resistant. We have had no major tenant credit issues, leading to very low bad debt expense and very little vacancy in our portfolio. On this topic, we would like to provide a brief update on our Bahama Breeze properties. As a point of clarification, we own 10 Bahama Breeze properties, which is 1.3% of our ABR. That said, Darden is planning to convert six of these locations to other brands they operate—Yard House, Olive Garden, LongHorn, Cheddar’s, etc.

They would like to convert more, but they are limited by already having nearby existing locations in some cases and co-tenancy restrictions. So the remaining four properties are 50 basis points of ABR, and we already are actively negotiating letters of intent with new tenants to backfill these locations. Based on the figures we are negotiating, we expect to recover or possibly even exceed the prior rent paid by Darden, although the timing and final economics will ultimately depend on the outcome of these negotiations. It takes a few months to negotiate a lease, and we should have further updates on timing at the Q2 earnings call. But overall, we are in very good shape.

Remarkably, I would like to point out that it has been less than three months since starting to announce the brand closures; for us to have potential solutions across the board for all 10 locations so quickly just highlights how our focused strategy, strong underlying real estate, and replaceable rent levels will benefit us long term. In any case, we will continue to collect rent throughout the backfill process as Darden is still obligated to make rent payments on these now for all 10 locations for at least one and a half years, and in some cases up to four. That provides us flexibility as we work through the preferred backfill tenant options.

Shifting gears, we continue to diversify our portfolio. Thirty-seven percent of our rent is now from key tenants outside of the casual dining subsector, including automotive service at 13%, medical retail at 11%, and QSR restaurants at 11%. We are actively exploring new retail categories and property types as we look to expand the top of our funnel for investments. As when we developed our automotive service and medical retail property strategies, prior to investing in a new sector we evaluate the business resiliency and AI disruption risk, availability of creditworthy tenants, real estate quality, and pricing attractiveness. That said, for us, the limiting factor in these sectors’ deals is typically sellers' lofty pricing expectations.

Finally, and this is a very exciting point, I would like to mention that Michael Friedland has joined our board. Michael recently retired from JPMorgan and brings 30 years of Wall Street experience in real estate finance and corporate credit to Four Corners Property Trust, Inc. We have known Michael a long time, and we are really impressed and glad he has joined our board. Welcome, Michael. Over to you, Joshua. Thanks.

Joshua Zhang: I will start with a review of Q1 activity and then touch on our investment pipeline. In Q1, we acquired 10 properties with a weighted average lease term of 10 years for $26 million at a blended 6.8% cash cap rate, or a 7.3% GAAP cap rate. This represents an average basis of $2.6 million per property, extending our strategy of partnering with creditworthy operators while focusing on fungible, low-cost basis assets to help mitigate downside risk. We were really happy with the asset selection this quarter, and as William noted, Q1 is typically a lower volume period for us. And the ending volume for the period lined up well with our internal expectations.

That said, Q2 is shaping up to be consistent with our typical seasonal volume ramp. Q1 acquisitions were composed of 46% restaurant, 28% auto service, and 26% medical retail properties. On the credit side, all of our properties acquired in Q1 were leased to corporate operators, the only exception being a McAlister’s Deli in Michigan, which is leased to Southern Rock, the largest McAlister’s franchisee with 178 locations across 13 states. Our team continues to partner with leading operators in each of our chosen retail subsectors. Coupled with our low-basis rent filtering, we have a proven track record of building a resilient and long-standing portfolio.

In the meantime, our team continues to actively explore all avenues for investment—both large portfolios and small granular deals—in addition to assets in new subsectors, as evidenced in Q4 2025. While we are expanding the top of our investment funnel, we will continue to maintain our discipline in acquiring low-basis investments leased to best-in-class operators at pricing accretive to our cost of capital. Patrick, back to you.

Patrick L. Wernig: Thanks, Joshua. I will start by talking about the state of our balance sheet and an update on our capital sourcing. Including our recently closed term loan, we funded $50 million of the new incremental $200 million term loan in April, and the balance will be used to fund acquisitions in Q2 and Q3. Term loan credit margin is 125 basis points over SOFR, for an all-in rate of approximately 4.9%. We fully hedged our current outstanding term loan balance of $640 million as of April 30 at a blended SOFR rate of 3.1%, or approximately 4% all-in, with that rate steady through November 2027. Our supplemental disclosure includes a detailed pro forma hedge schedule.

We also continue to benefit from full capacity under our $350 million revolver. With respect to leverage, at the end of Q1, our net debt to adjusted EBITDAre was just 5x. It is our seventh consecutive quarter of leverage below 5.5x, and at the bottom end of our stated leverage range of 5x to 6x. Noting that our term loan closed after quarter end, but after fully funding and investing the proceeds, estimated run-rate leverage will be 5.4x. Our fixed charge coverage ratio remains a very healthy 4.8x as of quarter end.

Turning to debt maturities, once factoring in the extension options for our existing term loan, we have no debt maturities until December, when just $50 million of private notes come due. We plan to address this in due course closer to the maturity date. Our staggered maturity schedule will ensure we do not face a significant maturity wall at any point thereafter. Now turning to some of our earnings highlights for Q1. Net flow per share was $0.45, representing 3.4% growth versus prior year. Cash rental income was $70 million, representing 10% growth versus prior year.

Annualized cash-based rent for leases in place as of quarter end was $266 million, and our weighted average five-year annual cash rent escalator is 1.5%. Cash G&A expense was $4.9 million for the quarter, representing 7% of cash rental income, compared to 7.7% for the prior year—a 70 basis point improvement in operating leverage—and flat cash G&A compared to the prior year. This illustrates our continued efforts at achieving efficient growth and the benefits of our rising scale. Following our Q1 results, we are reaffirming our guidance range for 2026 cash G&A of $19.2 million to $19.7 million. We have also continued to make progress, with 27 of the 42 leases originally expiring in 2026 extended.

Recapture rate on these locations is 6% above prior-year rent. We are currently negotiating to re-tenant two of those properties, and the remaining 13 now represent just 1% of ABR, down from 2.6% at the beginning of 2025. Our portfolio occupancy remains very strong at 99.6% today, which benefits from releasing some of our very limited number of vacant sites. We collected 99.7% of base rent in Q1 and, last quarter, did not see any material changes to our collectability or credit reserves. As an aside, during this call, we have referenced two of our new disclosure updates, which I will highlight again now.

First, going forward, we plan to disclose GAAP cap rates along with the cash cap rate figure we have always provided. We have very low default rates historically, and our intention is to hold our properties long term. Therefore, the data related to those expected long-term returns is another helpful metric for our investors. Our presentation includes a new slide that has GAAP cap rates going back to 2023, showing that historically they have averaged about 70 basis points higher than our initial cash cap rates. Second, we are updating the way we show the AFFO per share growth, calculating without the impact of two-decimal rounding.

Based on our share count, rounding can be impactful in this figure, particularly for quarterly comparisons. Our updated approach will allow us to quote a more accurate growth figure. We continue to aim for ways to improve transparency with the investor community and believe these changes are aligned with that focus. With that, we will turn over to questions for the Q&A session. And just a reminder, the meeting ID is 865913566 if you would like to ask a question. Thank you.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. We ask that you pick up your handset when asking a question to allow optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Michael Goldsmith from UBS. Michael, go ahead.

Michael Goldsmith: Thank you. It is Michael Goldsmith from UBS. Thanks for taking the question. First question is, I know you do not provide discrete guidance, but maybe this $200 million term loan is shadow guidance in that you have talked about fully drawing that down in the second and the third quarter. So as we think about acquisition activity, you have got the $200 million there, consensus at $275 million in acquisitions for the year and that stepping down to $250 million next year. Just trying to get a sense of your liquidity, the acquisition market, and now you kind of have clear line of sight into acquisitions of, let us say, $200 million through the third quarter.

Should you be able to exceed that and continue to acquire healthily into next year? And as a follow-up, I appreciate the new slides in the presentation—I think pages seven and eight. Can you just kind of walk through what you are trying to show here? I think you are indicating that the Four Corners Property Trust, Inc. portfolio—or the tenants that you have—are outperforming maybe the general overall restaurant industry. And then separately, your GAAP cap rates are exceeding your cash cap rates. Maybe you could just provide a little bit more detail about the point that you are trying to make with both of these.

Joshua Zhang: Thanks.

William Howard Lenehan: So, Michael, you know our business well. I think the answer might be hidden in your question. We are very particular about how our press releases are drafted, and I think we gave more specific timing guidance than we have in the past. I would say it is always curious that analysts seem to have declining acquisitions for us, which is unusual in the space. I do not think there are other companies where that is the case. I am not sure why. It is not what has been in the historical record. On your follow-up, great question.

We had an investor show us our stock price versus some generic index—I think it might have been MSCI or Morgan Stanley—some generic restaurant index. You had to be a little cute with the start date to get it to line up, but there was a pretty high correlation. They were making the point, do we trade like a restaurant index? We think that is a silly concept on its face. But if we were going to trade like a restaurant index, at a minimum, you should weight the index by our rent and look at the stock performance of our tenants weighted by our rent.

If you do that, you get the yellow line, which shows how strong Darden and Chili’s have been and that we do not have companies that have fallen into distress. Our tenant roster is really strong. On the GAAP cap rate, we have a competitor, Agree, that we admire—it is a great company. They have historically used GAAP cap rates. We have gotten questions about where our cap rates are versus theirs. There seemed to be some investor confusion that people were comparing our cash cap rates against their GAAP cap rates. Both numbers are perfectly legitimate ways of looking at it, but sometimes we felt our cash cap rates were being compared against their GAAP cap rates.

So we just did the math and showed you the data so you can pick and choose the way you want to do it. I will handle the last new disclosure you did not ask about—rounding. We just thought this is a more accurate way of doing it. Not surprisingly, sometimes comparing rounded to rounded versus more closely actual to actual would have a higher growth rate some of the time and a lower growth rate some of the time. We just thought this was a better way of showing it. There seems to be a lot of focus on growth today, and we wanted to give you the most accurate number we can.

If you have more questions about that—it is a pretty technical calculation—I would recommend you reach back out to Patrick after the call on the rounding issue.

Michael Goldsmith: Thanks so much, guys. Good luck in the second quarter.

Joshua Zhang: Appreciate it. Thanks, Michael.

Operator: Your next question comes from the line of BMO Capital Markets. Please go ahead.

Analyst: Hey, good morning. Thanks for taking my question. Just given your strong relationship with Yum and Brinker, are there any identifiable acquisition opportunities as Yum expands on its Taco Bell platform and Brinker expands on its Chili’s platform, just given the strength and same-store sales there—whether it is on the acquisition front or potentially a development opportunity? Thank you. And then just on the bad debt side of things, could you talk about anything that has been realized year to date and how you are thinking about bad debt for the remainder of 2026? Thank you.

William Howard Lenehan: Thank you. We are always working on those. The one comment I would make is Taco Bell tends to trade for very, very tight cap rates. But we are always working on things like that. Being aligned with strong brands where we can play offense and not have to be licking the wounds of prior investment mistakes is a huge advantage. But I would say that both of the brands you mentioned trade at very, very competitive cap rates on the secondary market. On bad debt, the number is zero for the year to date.

We have over 1,300 leases, so we are always monitoring something in the portfolio, but we have not had any bad debt this year and the portfolio continues to perform really strong. You probably saw Brinker’s results yesterday and recent prints by Darden as well. The brands we have aligned with are weathering any sort of macro headwinds very well. There are going to be some brands that do not, but we try to pick our horses very carefully so that we avoid that.

Analyst: Alright. Thank you for the time. Appreciate it.

Operator: Your next question comes from the line of Baird. Wes, please go ahead.

Wesley Golladay: Thank you. Hey, good morning, everyone. Can you go back to that comment on the expirations? I think you said 42 have been renewed. I believe you said 6%. I would have thought maybe it would have been a little bit lower with the contractual rent extension. How should we think about that going forward? Okay. Thanks for that. And then when we look at the pipeline going forward, is there a bigger percentage of that in the new category that you are evaluating, or are you looking to enter those new categories a little bit more methodically?

William Howard Lenehan: I would not overemphasize it. I think we had a positive quarter. Our typical rent growth is 1.5%. If you are modeling our company, I think that is a good place to go. There might be a quarter where it is better, might be a quarter where it is not as good, but 1.5% is a good place to start and finish. I would also just emphasize that Justin and his team have done a terrific job on asset management and releasing. That is a new capability for us in the last couple of years. Justin has really aggressively restructured his team and has done a terrific job.

We are more on top of that as a company than we have ever been by far. On the pipeline, we are really score-focused. We are not emphasizing one category over another. We are trying to find the assets that score the best and make sure those rise to the top with appropriate pricing. We are looking at some new sectors as we talked about last quarter and leaning into building relationships, finding what tenants we want to emphasize, etc. So the aperture is bigger than it has ever been.

Operator: Your next question comes from the line of Wells Fargo. John, please go ahead.

John Kilichowski: Hi, good morning. Thanks for taking my question. First one for me—William, thanks for the color on Bahama Breeze. To expand on that, you mentioned the positive mark on the other assets that were not being converted. Is there going to be downtime there? Will there be rent loss before the mark, or do you think there will be no net credit loss there? And then just quarter-to-date, if we kind of run the numbers here, it looks like the average blend is about 20 bps higher than what you closed in Q1. I know that is early based on what you have released.

Is there any sort of upward creeping yields that you are seeing driving that, or is that just small sample size driving that move?

William Howard Lenehan: No, I do not think there will be downtime. Darden is responsible for a year and a half at the minimum, up to four years for the handful that we are converting to other tenants. To the extent that there is rent growth or capital provided, all that is baked into our comments. We feel really good about being able to release these to strong tenants, and Darden is taking a lot of them too. It is a good diversification move. I think it shines a light on the Bahama Breezes that we sold a number of years ago for really high prices—that we did a good job managing our value-at-risk with any one particular tenant.

It could be a good result. On the quarter-to-date yields, small sample size.

Patrick L. Wernig: I would just add to that, as William said in his comments, we are talking about four stores and 50 basis points of ABR. It is a small amount.

John Kilichowski: Okay. Got it. Thank you.

Operator: Your next question comes from the line of Citizens Bank. Mitch, please go ahead.

Mitchell Bradley Germain: Thank you. William, you mentioned looking at a couple of new industries. I think it was capital that you allocated to a rental operator and a grocer. What sort of education do you and your team undertake in reviewing the sector? What are the attributes that made those assets or sectors interesting for you? And does that change the TAM in terms of how you allocate capital? Is that the way we should be thinking about this now? And last one for me: Are you seeing any real changes in the competitive landscape within the investment sales market? For quite some time, there was a lot of competition sitting on the sidelines, and some of that appears to be back.

Is that shifting any way that you are approaching underwriting and bidding on properties?

William Howard Lenehan: I think that is a good way of thinking about it. We use what we call the triple filter: Is this something that we know enough to buy? Do we have permission from our investors to buy it? And would we buy it with our own money? While those sound very high level, that is a very challenging gauntlet for an asset class to get through. I personally would not buy a pickleball facility with my own money, so that makes it pretty easy not to buy pickleball facilities. I would not buy a Carvana with my own money, so that makes it pretty easy. Do we have permission from our investors? That is a harder one.

We tend to take it pretty gradually to make sure that we are bringing our investors along with us. Pretty clearly, our investors do not need Four Corners Property Trust, Inc. to buy a Class A office in New York City; they have other ways to get that exposure. The “do we know enough” is manifest in writing white papers for our board, going to conferences, meeting and talking with tenants, walking the floors. I would say, humbly, that a lot of these sectors are things that I have experience with in the past, pre–Four Corners Property Trust, Inc.

When I was at Tralee/Trailion and on Gramercy’s investment committee and other things I worked on, we bought outdoor industrial storage and we bought grocery, so I have a familiarity and I am bringing the team along with me. On the competitive landscape, where we are on the onesies and twosies—we obviously look at portfolios and have closed on several in our existence—I think we are really well competitively positioned. We can build a portfolio throughout a year that we are proud of doing onesies and twosies. We have the scale to do bigger things as well.

We read a lot in the news about private credit and the private credit firms creating a discount to NAV, questioning of their marks—will that cause them to pull back? I do not think we have evidence of that yet. Certainly, recently there has been a lot of corporate M&A activity. I think there is a lot of shadow corporate M&A activity. There is a lot of things to work on now.

Operator: There are no further questions at this time. I will now turn the call over to William Howard Lenehan for closing remarks. William, go ahead.

William Howard Lenehan: Great. Terrific, and glad to land the plane on the 30-minute mark. Ultimately, existing portfolio strength is compelling for us to focus on offense, where many of our peers are playing defense. Our $200 million term loan gives us a direct line of sight for funding between now and Q3. The attractive pricing we are seeing in the debt markets should give us even more access to low-cost funding later this year at scale. The acquisition market is stable and, with a bit larger aperture for our property types, we expect another successful year of building our portfolio brick by brick.

Our team will be at ICSC the week of May 18 and NAREIT in New York the week of June 1. As many of you know, we host a cocktail party in conjunction with ICSC. We would love to meet with you in person at either of these events, so please reach out to Patrick or myself to coordinate schedules. Thank you all, and we look forward to continuing to see many of you in person this year.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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