Good morning, and welcome to the Agree Realty first quarter 2021 conference call. All participants will be in a listen only mode. Should you need assistance, please signal the conference specialist by pressing the star key, followed by zero. After today's presentation there will be an opportunity to ask questions. To ask a question you many press star then one on your touch-tone phone. To withdraw your question please press star then two. Please note this session is being recorded. I would now like to turn the conference over to Simon Leopold, Chief Financial Officer. Please go ahead, Simon. Good morning, everyone, thank you for joining us for Agree Realty's first quarter 2021 earnings call. Before we begin, I'd like to thank Joey and the board for the opportunity to join ADC and the outstanding team that they have assembled. I'm very excited to build upon the long track record of success here at Agree, I look forward to contributing to the company's next phase of growth while maximizing value for all stakeholders. Before turning the call over to Joey to discuss our results for the quarter, let me first run through the cautionary language. Please note that during this call, we will make certain statements that may be considered forward-looking under federal securities law. Our actual results may differ significantly from the matters discussed in any forward-looking statements for a number of reasons, including uncertainty related to the scope, severity, and duration of the COVID-19 pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures on us and on our tenants. Please see yesterday's earnings release in our SEC filings, including our latest annual report on Form 10-K and subsequent reports for a discussion of various risks and uncertainties underlying our forward-looking statements. In addition, we discuss non-GAAP financial measures, including core funds from operations or core FFO, adjusted funds from operations or AFFO, and net debts to recurring EBITDA. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release, website, and SEC filings. I'll now turn the call over to Joey. Thank you, Simon, and welcome aboard. Good morning, everybody. I'm pleased to report that ADC 3.0 is officially underway. Our focus on people, processes, and systems, combined with the unique and unprecedented opportunity in the marketplace, has accelerated the trajectory of our company in every respect. Our increase in guidance reflects the success we are seeing on the acquisition front. While externally these results speak to our present and future capabilities, what is less visible is the platform infrastructure that we have constructed that powers the ADC engine. The launch of ARC, our proprietary technology platform, is the culmination of a multi-year effort. What started as an idea and a static spreadsheet has now materialized into a powerful and dynamic tool for our growing company. At the core of our decision-making is real-time data. ARC enables and informs everything from relationship management through its CRM tool, our asset-level underwriting, portfolio construction via its vast modeling and planning capabilities, as well as its asset management through its work order management system. These tools have enabled our team to execute quickly and decisively on opportunities, aggregate and access data, establish key performance indicators, measure our performance, streamline and provide clarity to team members, and proactively manage our growing team. We are very excited to demonstrate ARC's capability in the very near future. In addition to the technology that we have deployed, the leadership and board additions match the opportunity we see in front of us. This is not a company that sits still, but we intend to continue to rise to the occasion and take advantage of our distinctive market positioning. Moving now to our results. During the first quarter, we invested approximately $391 million in 90 high-quality retail net lease properties across our three external growth platforms. 86 of these properties were originated through our acquisition platform, representing acquisition volume of almost $387 million. While achieving another very strong quarter of acquisition volume during these uncertain times, we maintained our disciplined focus on best-in-class opportunities with leading retail partners. This was clearly demonstrated by a record 32% of first quarter acquisition volume being comprised of ground leases and more than 72% of first quarter volume being derived from investment-grade retailers. The 86 properties acquired during the first quarter are leased to 46 tenants operating in 20 distinct sectors, including best-in-class operators in the off-price consumer electronics, auto parts, general merchandise, convenience store, grocery, and tire and auto service sectors. The acquired properties had a weighted average cap rate of 6.3% and had a weighted average lease term of 12.9 years. We executed on several notable transactions during the quarter, including our first two Amazon Fresh grocery stores located in Westmont and Bloomingdale, Illinois. We're very pleased about the opportunity to add Amazon as a top 50 tenant within our portfolio and look forward to additional opportunities to grow our relationship with them. Additionally, we acquired a unique portfolio of 10 CVS stores, all of which recently signed brand-new 20-year net leases at below-market rents of just over $14 per square foot on a weighted average basis. Even with this portfolio acquisition, our pharmacy exposure is still down nearly 110 basis points YoY, driven by portfolio growth and the opportunistic disposition of Walgreens assets. With this transaction, CVS has surpassed Walgreens as our largest pharmacy tenant, quite an accomplishment for a former Walgreens developer that at one time had nearly 40% exposure to Walgreens. By year-end, I anticipate our exposure to Walgreens to drop to at or below 1.5% of our total portfolio. The pharmacies that we've added in recent years, including this portfolio and the long-term CVS in downtown Greenwich, Connecticut, reflect unique opportunities to acquire high-performing CVS stores with duration and residual values that are difficult to find in the pharmacy space. As I've discussed in recent calls, we continue to favor CVS as the sector leader, given their innovation and adaptation to consumer preferences and overall market dynamics in the pharmacy space. The acquisition of Aetna in 2018, the rollout of the MinuteClinics, and now their HealthHUB concepts, continue to demonstrate thoughtful leadership. During the quarter, we also added our first REI store located on a major retail thoroughfare in East Hanover, New Jersey. With median household incomes of $150,000 and a daytime population of 165,000 within a five-mile radius, this store is positioned for long-term success. Our focus on building the highest quality retail portfolio is further evidenced by the record number of ground leases that we acquired during this past quarter. We added 31 ground leases to our portfolio for an aggregate purchase price of $127 million, again, representing almost 32% of annualized base rents acquired during the quarter. Our overall ground lease exposure now stands at a company record of 11.4% of our total annualized base rents. Notable ground lease acquisitions during the quarter include a CarMax in Pleasant Hill, California, six Wawa convenience stores, our first Discount Tire, and the previously announced portfolio acquisition of 15 ground lease assets from Kite Realty Group. Inclusive of our first quarter acquisition activity, our ground lease portfolio now derives 89% of rents from investment-grade tenants and is comprised of the company's premier retailers. Our deep relationships across the industry, as well as our team's strong track record of execution, continue to deliver additional opportunities to add such properties to this expanding sub-portfolio. Given our robust acquisition activity in the first quarter and enhanced visibility into our pipeline, we are increasing our full year 2021 acquisition guidance to a range of $1.1 billion-$1.3 billion, representing a 33% increase at the midpoint as compared to our previous annual guidance. This increase reflects the fact that we're seeing very strong opportunities to grow our portfolio while remaining disciplined and committed to our stringent investment criteria. We continue to view retail real estate as dynamic and bifurcated into long-term winners and losers. We fully intend to stay on the winning side. At quarter end, our portfolio's investment-grade exposure stood at more than 67%, representing a significant YoY increase of more than 750 basis points. On a two-year stacked basis, our investment-grade exposure has improved by almost 1,500 basis points. Moving on to our development and Partner Capital Solutions platforms, we continue to see compelling opportunities. We had four development and PCS projects either completed or under construction during the first quarter that represent total capital committed of more than $14 million. One of these projects was completed during the quarter, our second development with Burlington in Texarkana, Texas. I'm pleased to announce we also commenced our first development with 7-Eleven during the quarter, located in Saginaw, Michigan. 7-Eleven will be subject to a new 15-year lease upon completion, and we anticipate delivery will take place in the first quarter of 2022. Construction continued during the first quarter on two development and PCS projects with anticipated total costs of more than $8 million. The projects consist of a Grocery Outlet in Port Angeles, Washington, and a Gerber Collision in Buford, Georgia. Subsequent to quarter end, we commenced our first development with Floor & Decor in Naples, Florida, where they'll be subject to a new 15-year lease. We anticipate total cost for this project to be approximately $20 million, with rent commencing by January of 2022. We remain focused on leveraging our three-pronged external growth platform to expand our relationships with best-in-class retailers, and we look forward to updating you on progress in the quarters ahead. Moving on to dispositions. We sold three properties for total gross proceeds of nearly $9 million during the first quarter. These dispositions were completed at a weighted average cap rate of 6.8% and included a short-term Walgreens in Big Rapids, Michigan, as well as another franchise restaurant. Subsequent to quarter end, we sold our Dave & Buster's in Austin, Texas for approximately $10.5 million, representing a cap rate of 7.4%. Notably, Dave & Buster's had less than four years remaining on the base term of their lease at the time of sale. This disposition is reflective of our real estate underwriting and the ability to sell this asset at an IRR of more than 8% is a testament to the quality of real estate in our portfolio. This sale reduced our Dave & Buster's exposure to just two remaining locations. During the quarter, we executed new leases, extensions, or options on approximately 66,000 square feet of gross leasable area. As a result of our asset management team's efforts, at quarter end our lease maturities for 2021 stood at just 0.4% of annualized base rents, representing a QoQ decrease of approximately 50 basis points and a YoY decrease of approximately 170 basis points. Our 2022 lease maturities are in a very positive position as well, with only 21 leases or 1.2% of ABR expiring during the course of the year. No single lease maturity exceeds $600,000 annualized base rents and represents only 0.2% of ABR. As of March 31st, our rapidly growing retail portfolio consisted of 1,213 properties across 46 states, including 120 ground leases. The thoughtful and disciplined construction of our leading retail portfolio continues to be reflected in our rent collections data. Including April, we've now collected at least 99% of rent payments for eight consecutive months. During the quarter, we collected more than 99% of rent payments from our portfolio while entering into deferral agreements representing less than 1% of first quarter rents. As a reminder, our collections data includes both base rent and recurring operating cost reimbursements. In addition, we include base rents and operating cost reimbursements charged to tenants in bankruptcy and have not made any COVID-related adjustments to the denominator when making these calculations. We remain committed to providing complete and transparent data to our investors on our collections. I'm also pleased to report that our inaugural ESG report was published in the first quarter and can be found in the investors section of our website. I look forward to continuing to engage with our stakeholders on the ESG front and excited about our future successes here. Lastly, I'd like to take a moment to welcome Ambassador John Rakolta Jr. back to our board of directors. John previously served on our board from 2011 until his confirmation as United States Ambassador to the United Arab Emirates in September of 2019. His leadership helped shape our company, and his contributions will be invaluable as we enter the next phase of our growth. With that, I'll hand the call over to Simon, then we can open it up for any questions. Thanks, Joey. Starting with earnings, Core Funds From Operations for the first quarter was $0.84 a share, a 3% YoY increase. Adjusted Funds From Operations per share for the quarter was $0.83, an increase of 2.3% YoY. During the past four quarters, we have elected to treat COVID-19 rent deferrals as delinquent receivables, and our FFO measures include this revenue. As a reminder, treasury stock is included within our diluted share count prior to settlement if and when ADC stock trades above the deal price of our outstanding forward equity offerings. The aggregate dilutive impact related to these offerings was negligible in the first quarter. Per FactSet, current analyst estimates for full year AFFO per share range from $3.39-$3.53 per share, implying YoY growth of 6%-10%. Given current visibility into our investment pipeline and the broader operating environment, we view this level of growth as achievable and expect to end the year toward the higher end of this range. General and administrative expenses totaled $6.9 million in the first quarter. G&A expense was 8.8% of total revenue, or 8.3% excluding the non-cash amortization of above and below market lease intangibles. While we continue to invest in people and systems, our anticipation is that G&A as a percentage of total revenue will decrease approximately 100 basis points from 2020 to roughly 7% for 2021, excluding the impact of lease intangible amortization on total revenues. As a reminder, G&A expense for our acquisitions team fluctuates based on acquisition volume for the year, and our current anticipation for G&A expense reflects acquisition volume within our new increased annual guidance range of $1.1 billion-$1.3 billion. Due in part to a one-time true-up of almost $500,000 related to 2020 income taxes, total income tax expense for the first quarter was approximately $1 million. For 2021, we now anticipate total income tax expense to be approximately $2.5 million. Moving on to our capital markets activities for the quarter. As mentioned on last quarter's call, in January, we completed a follow-on public offering of approximately 3.5 million shares of common stock, including the underwriter's option to purchase additional shares, which generated net proceeds of almost $222 million. We were also active on the ATM during the first quarter, entering into forward sale agreements to sell more than 372,000 shares of common stock at an average gross price of $68.93 for anticipated net proceeds of more than $25 million. On March 31st, we settled 578,000 shares under our outstanding ATM forward offerings for net proceeds of approximately $37 million. At quarter end, we had approximately 2.9 million shares outstanding on our ATM forward offerings, which in total are anticipated to raise net proceeds of approximately $190 million upon settlement. Inclusive of the anticipated net proceeds from our outstanding forward offerings and availability under our credit facility, we have more than $450 million in available liquidity. As of March 31st, our pro forma net debt to recurring EBITDA was approximately 4.2x, as our outstanding forward equity offerings continue to meaningfully reduce pro forma leverage. Excluding the impact of unsettled forward equity offerings, our net debt to recurring EBITDA was approximately 4.9 x. Total debt to enterprise value at quarter end was approximately 24%, while fixed charge coverage, which includes principal amortization, increased to a company record five times. During the first quarter, we announced the transition to a monthly dividend and declared monthly cash dividends of $0.207 per share for January, February, and March. The monthly dividend reflected an annualized dividend amount of $2.484 per share, representing a 6.2% increase over the annualized dividend amount of $2.34 per share from the first quarter of last year. Our payout ratios for the first quarter were a conservative 74% of core FFO per share and 75% of AFFO per share, respectively. Subsequent to quarter end, we declared an increased monthly cash dividend of $0.217 per share. The monthly dividend reflects an annualized dividend amount of $2.604 per share, or an 8.5% increase over the annualized dividend amount of $2.40 per share from the second quarter of last year. With that, I'd like to turn the call back over to Joey. Thank you, Simon. Operator, at this time, we'll open it up for questions. We will now begin the question and answer session. To ask a question you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Ki Bin Kim for Truist. Please go ahead. Thanks. Good morning. Joey, can you talk about your leverage philosophy? I believe your last quoted target range is about four to five times debt to pro forma EBITDA. Why is that the right range for you guys? Why not a little bit higher? It would be great to see that total AFFO growth translate to more AFFO per share growth. When you take into account the high quality nature of your EBITDA, 70% investment grade and all that, I would think it could support a higher leverage range, relatively speaking. Yeah. Good morning, Ki Bin. I think if you look at net lease generally, and our portfolio specifically in a private context, I think net lease, of course, you're right, it does in a private context support significantly more leverage. What we've found is running a conservative balance sheet with the liquidity and frankly, the balance sheet capacity to continue to expand our business, which is growing at a clip of call it 33% per annum here, is prudent. During the pandemic, we brought our stated leverage target down from five to six times to four to five times. We've historically been operating in that range. Really anyway, inclusive of the forward equity offering, today, sitting at pro forma 4.2 x, we think we're in a fantastic position to continue to execute on our pipeline near term and long term. At the same time, look, these aren't hard and fast rules. Tools like the forward equity offering give us the ability to move leverage between that four and five, and even potentially to go north of the five times. I think as Simon mentioned in the prepared comments, we think we can achieve upper single digit AFFO growth here, even with a strong balance sheet that's running between four and five times. While the portfolio certainly could support higher leverage, we think it's prudent to maintain the dry powder to continue to execute on the business. Simon, you want to add anything? Yeah. The only thing I'd add, Ki Bin, is that it's really important that we continue to be able to raise capital in an efficient and cost-effective way. With the leverage where it is right now, we think we're clearly going to be very appealing to investors in the bond market, and that's a really important part of our overall capital strategy. We're able to achieve the kind of AFFO growth that Joey talked about, that I talked about on the call, at these leverage points. It seems like the right place. It's a comfortable balance between sort of all the stakeholders' interests in the company. Our next question comes from Katy McConnell with Citi. Please go ahead. Thanks. Good morning, everyone. Can you provide some insight into the volume of deals sourced versus closed during the quarter? Are you making any changes in your underwriting criteria or assets that you're targeting based on the new technology you're using with the ARC platform? No. Good morning, Katy. The first part of your question broke up. Was that the specifics about what we acquired during the quarter? Yeah, just the volume that you sourced as opposed to closed. I tell you, we close the vast majority of assets that we source, as long as obviously we clear diligence, and receive estoppels and the like. In terms of sourcing, look, we will continue to bat to upper single digits. That's our business here. We bat 6%, 7%, 8% of what we actually close on in terms of what comes into investment committee. The team is doing a tremendous job uncovering opportunities. It's fair to say we look at billions of dollars in any given quarter if we're acquiring close to $400 million. To your second part of your question, what ARC enables is really real-time access to data and the transactional capabilities to match, and then the dashboarding capabilities, as I mentioned in the prepared remarks. It's a fantastic tool for our team, both on the origination side as well as throughout the entire real estate life cycle of an asset. I would anticipate our acquisition activity in coming quarters to be similar in terms of composition. We'll continue to focus on industry-leading retailers in our quote-unquote sandbox. We'll continue to source opportunistically high-quality ground lease assets, and our focus will remain in best- in- class omni-channel operators. Okay, thanks. Now that you've sold a Dave & Buster's asset, what are your plans to further sell down entertainment exposure, and what does demand look like for this category in terms today? The totality of our entertainment exposure is the two remaining Dave & Buster's assets and the ones in downtown New Orleans, in a mixed-use complex, which is a very unique property for us. Adjacent to the Smoothie King Center and the Mercedes-Benz dome, the former dome there in New Orleans, the Superdome. That's the totality of our exposure there. We were never overly inquisitive in the experiential/entertainment sector to begin with. Those are the two assets. We're very comfortable with them. Obviously, if we get the right bid for them, we'd look at the opportunities to dispose of them. I think the Dave & Buster's in Austin is representative of the high-quality nature of our real estate. That asset had 3.7 years of remaining term on it, and we were able to achieve a mid-seven cap rate. I think that was an optimal outcome for us there. That was an inbound, which we've been talking about for a couple of quarters now. It wasn't even openly marketed. Okay, great. Thank you. Thanks, Katy. Our next question comes from Nathan Crossett with Berenberg. Please go ahead. Hey, good morning, guys. Just curious to get your comments on what the outlook for pricing looks like, as far out as you can see, I guess. Is there any pressure there? Have you seen any change with kind of rates backing up? What should we be expecting? I think pricing in the high-quality net lease space and from comments from some of our peers and just general market data, we see it in the lower tier in terms of quality in the net lease space continues to be attractive. We continue to see aggressive cap rates marginally compressing. We continue to hear specifically to source value, given our relationships, our technology now, and just the depth and breadth of our team. In terms of cap rates on a go-forward basis, if the 10-year stays in this range bound here, in the 1.6% range, let's call it ± 20 basis points, I truly don't see any material movement in cap rates or any upward pressure in terms of cap rates. Okay. That's helpful. Record quarter for ground leases for you guys. Is there anything to call out there that's driving the increased volume there? Or is it just a function of the Kite Realty portfolio? Are there other portfolios like that that are out there that you can get? Well, Kite was certainly a component there, but as we talked about in the prepared remarks, we acquired a number of Wawas. We acquired a CarMax in California, a long-term ground lease in Pleasanton, California, to CarMax, who we continue to view in really in a superior position in the used car space, given the nature and breadth and depth of their different lines of businesses. We continue to source unique opportunities like The Discount Tire on a one-off basis. The Kite portfolio certainly was a piece of it. We'll continue to look at such portfolios as they arise, but the vast majority of opportunities were truly on a one-off basis there. Okay, thanks, guys. Thanks, Nate. Our next question comes from Haendel St. Juste from Mizuho. Please go ahead. Hey, good morning. Morning, Haendel. Yeah. Hey, Joey, I guess we've seen like, pick up here, in M&A, the Kimco Realty, Weingarten Realty Investors, and Realty Income Corporation and VEREIT, Inc. the latest. I guess I'm curious on what your view on the backdrop for M&A today is here in the space, and if there's any scenarios we could see ADC participating. Also, more broadly curious what your thoughts on the pricing from the Realty Income Corporation and VEREIT, Inc. merger. Thanks. Well, it's certainly interesting to see public-to-public M&A in the overall retail space. I think the shopping center space potentially was a long time coming, and I'm not sure if we've seen all of it in totality given just the number of operators in the space and the different pressures on the space. I think, look, M&A, obviously it is unique. It is transaction specific. We'll continue to look at any and all opportunities, and most importantly, I think the M&A we've seen in our space and as well as adjacencies, provides us a continued opportunity to execute on what we do. We are not a portfolio purchaser, generally speaking. We're not a sale leaseback purchaser, generally speaking. We're focused on a very tight sandbox here of the best retailers in the country. We have ±80 transactions going through our pipeline at any given time at a very granular nature, average price point to $4 million-$5 million. Our competitive set continues to be private purchasers, 1031 purchasers, levered purchasers on the asset leverage on the asset level. It's a very unique opportunity for us to continue to accelerate and expand our business with an M&A backdrop there, and we'll continue to look at opportunities. I've always said what we will never do is dilute the quality of this portfolio. We are on a march to improve what we think is already the highest quality retail portfolio in the country. We are going to continue to drive that home. Now, pandemic surge sales and the like, and a lot of unique circumstances have made retailers outside of our sandbox appear more attractive in the near term. But as I stated in the prepared remarks, we really view retail as a K here. There's going to be continued dynamic transformation in retail. We're focused on the uplift of that K and the winners there. Got it. Thank you for that. Anything under contract or LOI today? As part of that, I'm thinking what your overall view on exposure for the ground lease out of your business could grow to, how you're thinking about that over time. Thanks. Well, the team continues to surprise me by the ability to source ground lease assets. They are, and I say consistently, we think the best risk-adjusted returns by a significant margin in retail real estate. The ground lease portfolio at 11.4% has almost doubled in size in approximately, I'd say, 24 months. I anticipate it to tick higher in Q2, just given the extent of the pipeline that we can see currently, with similar opportunities that we executed on Q1. It's a unique aspect to our business. The team, and through their efforts, surprise me about their capabilities to continue to uncover those truly on a granular basis. Where it goes from here will be a function of the team's efforts and pricing and what makes sense qualitatively within the portfolio. I wouldn't have predicted 11.4%. I wouldn't have predicted historically that it would be north of there at 630. We continue to find those opportunities. On the contract or LOI side, anything you can share on that front? Nothing specific. Our pipeline continues to be strong for Q2, hence the raise of the guidance. We're beginning to source for Q3 opportunities today. There are some unique transactions in there similar to Q1. Obviously diverse geographically by sector and by tenant. Nothing overly notable or nothing that we're going to call out today. Got it. Thank you. Thanks, Haendel. Our next question comes from Linda Tsai with Jefferies. Please go ahead. Hi. Good morning. Good morning. To reach the high end of consensus estimates, Simon, I think you said 10% YoY growth. Does this assume $1.3 billion in transaction volume? What kind of assumptions does this incorporate on the equity side? Well, Linda, the range was 6%-10%, and what we said was that we expect it to be toward the higher end, not necessarily all the way to 10%, but it does incorporate the range of outcomes on acquisitions that we put out there, the $1.1 billion-$1.3 billion. Look, you never know exactly where you're going to get. This is not a precise science. We're out there buying things every day, but that's what we're trying to get to. It also does require an acceleration of the results QoQ. We had call it $0.83 of AFFO in this first quarter. In order to get to that higher end of the range, it does require an acceleration of results toward the back end, that's really a function of our acquisition pipeline. Thanks. Joey, in your prepared remarks, you highlighted the CVS in Greenwich and an REI in East Hanover. Are you seeing more compelling opportunities come to market in higher income areas, or is this part of a focus to gain higher exposure to these markets? Just for clarity, Linda, the CVS in Greenwich was acquired I believe in 2020 or late 2019. The CVS portfolio, the 10-pack, was acquired in the first quarter. Look, we continue to be geographically very dispersed. That is from urban to rural to street retail to ground leases, really across that spectrum as long as it's in our sandbox. We've seen accelerated opportunities in the Sun Belt, just given the nature of construction starts down there. We've seen accelerated opportunities in the South. Really we're opportunistic in terms of going coast to coast and north to south across the country. Thank you. Thanks, Linda. Our next question comes from Todd Stender with Wells Fargo. Please go ahead. Hi, thanks. Joey, just to kind of hone in on the CVS transaction, how big a deal was that? What was the remaining lease term before you blended and extended? Maybe just some context there. I think you commented on the rent being below market. Maybe any more color, please. That transaction, as I mentioned, was unique. These are CVS locations in their core markets in the Midwest. Short remaining lease terms, approximately five years on those stores. Fully recast into 20-year leases, 10 stores. It was approximately, off the top of my head, about $30 million. The unique aspect of the transaction was not only that CVS, as I mentioned in the remarks, extended for a full 20 years. Also, if you look at per sq ft rental rates and aggregate rental rates across the pharmacy space, they typically range from $25 to $35 per sq ft. Part of my challenge with pharmacy acquisitions historically, and hence the dispositions of the Walgreens and our reduction in overall exposure, was the replacement rents on those approximate 13 to 14,000 sq ft buildings, which typically ran from 1/3 to 1/2. In context of this transaction, we have CVSs that are paying approximately just over $14 per square foot, brand new recast, 20-year leases. CVS results, by chance, came out this morning, again, beating the street with impressive results. We're a fan of what CVS is doing, both transformationally within their business, but also on the real estate front. As I mentioned, Walgreens really post the acquisition by Boots Alliance, and hence then the attempted acquisition of Rite Aid to increase in store count, while CVS went in a divergent health and wellness aspect. They had the PBM historically, the Aetna purchase, the MinuteClinic rollout, and now the HealthHUBs, which are extremely impressive if anyone's had the opportunity to see them, that they continue to roll out, is really a vertically integrated health and wellness business. We like what they're doing from a corporate perspective. We're hesitant on the front end of pharmacy. We're hesitant on the residuals historically. Given the nature of the low price points, the low per square foot rental rates, and the low per square foot purchase prices, and the 20-year CVS leases, we thought this was an extremely attractive transaction. All right. That's helpful. Thanks, Joey. I don't know if I missed this, what are the assets that are on top of the ground leases that you acquired from Kite? Any color there? It was a mixed bag. Everything from a Chick-fil-A to, I believe, a Bank of America to a couple Panera Bread locations, outlots of their existing shopping centers throughout their portfolio. It was an opportunity for us, a portfolio-level opportunity to increase the ground lease exposure there. It was a direct transaction that we thought was beneficial, obviously, to both parties. All single-tenant standalone, no shopping centers. Correct. All single-tenant standalone outlots, which is fairly unique for us. All right. Thank you. Thank you, Todd. Our next question comes from Peter Hermann with Baird. Please go ahead. Hey, Joey. Thanks for fielding the questions today. Can you talk about the ability to potentially close deals faster now with the new platform? Thanks. I appreciate the question to talk about ARC a little bit. I'll just take the opportunity. What I found a few years ago is the acceleration of the business really began to ramp, was just being the nature of an aggregator, it was difficult to project forward critical key metrics. Peter Coughenour, our VP of finance, and I started sketching out literally on a piece of paper, an idea and a concept. That idea quickly then morphed into a static spreadsheet, which required obviously significant manual input. That static spreadsheet then became powered by an IBM TM1 database. The IBM TM1 database then got switched to a MySQL database to give us the real-time and dynamic capability. From there, we customized our CRM tool that we hooked in to ARC through the MySQL database. That initial projection tool became a dashboarding tool for us, for our acquisition team, really guided in part by Greg Lehmkuhl, the CEO of Lineage, who's a fantastic director on our board, and who is a lean guru and whose team trained and facilitated ours just in operational and using visual key management tools. Every member of our acquisition asset management transaction team now has a dashboard that they can drill into all levels of data, cut, slice, dice it, display it visually, export it, do all types of really cool things. In the last few quarters, we have constructed even more additional modules, really expanding it to really the entire company. Now we have a full pipeline and database that ties into our underwriting. It's literally a map of the country that can be drilled into, sorted, and filtered by any criteria. A work order management system that spans the property-level maintenance all the way to the full data aggregation here. Work orders by duration, type of work order, planning tools in terms of seeing the number of work orders and where they span across the country. Another transaction team module is in beta and will go live very shortly here. That enables the full team to see the real-time status of all transactions in our pipeline from the first contact at the CRM level, at the customer management level, to the current status of the diligence. ARC is truly the connectivity between the team and the technology we've created to harness the opportunity in a very fragmented market. It's a key ingredient for us to continue to scale. Without ARC, our people, and our culture, it wouldn't be possible to execute $1.1 billion-$1.3 billion of transactions with an average purchase price of $4 million-$5 million. Again, we have 50 to 100 transactions going through the pipeline at any given time. This system, this tool, the platform really gives us real-time data on all real estate activities. It gives us the capability through its dashboarding, both team and individual, to establish KPIs, to measure and manage to them. It's a powerful tool that will continue to expedite and accelerate the business here, both at the transactional level and obviously that rolls up, those ±300 transactions rolls up to a result at the end of the day. Got it. Appreciate that color. Thank you so much. Thank you. As a reminder, if you have a question, please press star then one. Our next question comes from John Massocca from Ladenburg Thalmann. Please go ahead. Good morning. Morning, John. Could you maybe provide some color on the expected investment volume cadence this year? You look at the Q1 2021 acquisitions, and you back those out of guidance, it essentially calls for around $300 million of investments, which would be a notable decline versus Q1. I'm just trying to figure out if that's based on your visibility into Q2 or just conservatism around maybe H2. Well, I think given just the nature of our business as a granular purchaser, it's very difficult to predict or project. I mean, we truly have zero visibility into Q4, minimal visibility into Q3. We have very good visibility now into Q2. Again, I'd remind people, our average transaction is approximately 70 days from letter of intent to execution to close. Some longer, some shorter, just by the nature of the transaction. It's difficult given obviously a fluid market, a fragmented space, and just the nature of our business to project forward. Now, we've come out with the initial guidance of $800 - $1 billion in the first week of January, given what we know at the time. Our promise has always been, when we know what we know, we will come out and adjust any expectations and provide that transparency to investors. I would tell you it's a combination of the environment, it's a combination of our business. We just can't see the future. I wish we could. ARC does not allow us to see the future, unfortunately. That will be the next module, right, Peter? I know you guys don't give quarter-to-quarter investment volume guidance, but if you think about the $1.1 billion- $1.3 billion, is that significantly front-end loaded based on what you see today? Well, I wouldn't say it's necessarily front-end loaded. We just printed Q1 at approximately $380 million acquired. I think we can cut that up for the remaining three quarters. I don't anticipate Q2 to be very different in terms of assets that we're acquiring. Volume may be down or at that level, we'll see where things close. Again, we can't predict whether something's going to close on July 27th, 28th, or July 2nd. It won't close on July 4th because everything's closed. The last outstanding issue generally to close an asset in our business is reliant upon the tenant to provide estoppels. Things can cross quarters. We have ideas what will close this quarter, everything can get jumbled around. ARC gives us the visibility to move things around in those corners as we have those third-party respondents, diligence, outstanding estoppels, and such like that. That provides a level of transparency and visibility for us. Closing and the timing of transactions really isn't reliant necessarily upon just our operations or execution here. Okay. Understood. How did the cap rate on ground lease assets acquired in the quarter compare to kind of non-ground lease investments? I guess if you saw ground leases as a percentage of investments, maybe normalized versus historical levels, how much higher, assuming ground leases were a lower cap rate, how much higher could the overall kind of blended cap rate trend? The ground lease assets, interestingly enough, due to the duration of relationships, the duration of their base term remaining, our relationships, we're buying short-term, long-term ground leases. We obviously did the Kite transaction. They, generally speaking, fall within the range of our general acquisition volume. Long-term ground leases in California can be at the lower end of the acquisition, obviously, spectrum for us in terms of cap rates. They generally fall within that range. I don't have a percentage for you off the top of my head, but just given the nature and the disparity between some of these assets, it generally is falling within, call it that five to seven range for us, and then we end up generally in the mid-sixes. There's a second part to that question? Sorry. No, I think it's kind of irrelevant because they are in the same range. Makes sense. Yep. One last kind of bigger picture one. There have been some rumblings about kind of increased capital competition in the net lease space from leveraged non-public buyers, life cos, et cetera. Are you seeing these competitors in the same boxes in which you tend to play? I think the ABS-backed buyers, the CTL-backed buyers, the heavily levered buyers are looking in larger price point transactions, some of the larger sale-leasebacks. We're seeing very aggressive cap rates where I haven't participated. I think, again, the $4 million-$5 million average price point doesn't play itself very well to private equity sponsors or ABS or CTL-backed purchasers there. Our competition continues to be Jane Doe, and it's a unique competitive set. Given our balance sheet, our team, our capabilities, and now our technology platform and cost of capital, frankly, it's a mismatch. Okay. That's it for me. Thank you very much for taking my questions. Great. Thank you, John. This concludes our question and answer session. I would like to turn the conference back over to Joey Agree for any closing remarks. Well, thank you, operator, and thank you, everybody, for joining us today, and we look forward to catching up with everybody in June at Virtual Nareit. We'll talk to you soon. Thanks. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.