Greetings, and welcome to the NNN REIT Incorporated Third Quarter 2023 earnings call. At this time, all participants are on a listen-only mode, and a question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Steve Horn, Chief Executive Officer. Sir, you may begin. Thanks, Ali. Good morning, and welcome to NNN REIT's third quarter 2023 earnings call. Joining me on the call, Chief Financial Officer Kevin Habicht. As this morning's press release reflects, NNN's performance in 2023 continues to produce strong results, including high occupancy, solid acquisitions driven by our proprietary relationships, which is the NNN moat to creating quality earnings. We are in position to continue the performance through the fourth quarter as our pipeline and capital are in place. Based on our year-to-date performance, we announced a further increase in our 2023 guidance for core FFO to a range of $3.19-$3.23 per share, and we raised the midpoint of total acquisition volume to $750 million from $650 million. Before I get into the day-to-day operations and market conditions, I would like to discuss significant third quarter events for the company. First, I'm excited to welcome Mr. Jon Adamo to the executive team as Head of Portfolio Operations. Jon joined NNN in 2003, and has been a valuable contributor since day one. Currently, he's overseeing the asset management, leasing, underwriting, dispositions, and development financing functions for the company. I'm confident we have the right person waking up every day thinking about the best way to extract value for the shareholders out of the already solid NNN portfolio. In addition, on the capital markets front, we completed a $500 million, 10-year unsecured bond offering with a 5.6% coupon. In traditional NNN fashion, the execution and timing of the deal in today's market are looking pretty stellar. More importantly, the timely transaction has NNN in terrific position to continue executing the strategy. NNN's long-standing discipline of being selective while deploying capital and opportunistic raising capital over the decades has NNN in great shape. In a time of prolonged uncertainty, like today's macroeconomic conditions, NNN's discipline of maintaining a solid balance sheet and reasonable acquisition volume does put NNN in a place to execute the remaining deal flow for 2023, but more importantly, to execute 2024 with limited, if any, needs to access the capital markets. At the end of the quarter, we had nothing drawn on our $1.1 billion line of credit after completing over $550 million of volume through the first nine months. Couple the line of credit with NNN's industry-leading free cash flow as a percentage of acquisition volume, we are ready to execute when the right opportunities present themselves. Shifting to the highlights of the third quarter's financial results. Our portfolio of 3,511 freestanding, single-tenant properties continued to perform exceedingly well with 10.1 years of term, maintained high occupancy levels of 99.2, which remains above our long-term average of 98% plus or minus, and only 27 vacant assets. With regard to acquisitions, during the quarter, we invested $212 million in 46 new properties at an initial cash cap rate. I can't stress enough, cash cap rate of 7.4, and with an average lease duration of 16.5. 18 of the 34 closings were under $5 million, which shows NNN's belief that the smaller deals still move the needle, and we believe smaller, fungible real estate is the best risk-adjusted investment. The first nine months, we invested roughly $550 million in 125 properties at a cash cap rate of 7.2, which is about 100 basis points higher than a comparable period in 2022. Currently, the industry continues in the price discovery mode, and that is resulting in the overall market volume down nearly 50%. But we do see the bid-ask spread showing signs of tightening, so we will continue our thoughtful and disciplined underwriting approach. There has been an increase in cap rates for NNN as the year progresses, and we are seeing that trend continuing. NNN has been listed on the New York Stock Exchange since 1994. It's one of the few net lease companies that has operated with success in a high interest rate environment, with a proven operating model and strategy over many decades. The model is about prudent capital allocations, creating predictable, consistent, high-quality cash flow by emphasizing acquisition volume through sale leaseback transactions with our stable of relationships, using the company's long-term triple net lease form, which is a lot more landlord-friendly than a 1031 market deal. During the quarter, we sold 13 properties, two were vacant, raised $49 million of proceeds at a 6.0 cap rate, and reinvested it at 7.4. Year to date, we have now raised approximately $90 million of proceeds from the sale of 26 assets, which included seven vacant at a 5.8 cap rate. The mission is always to release vacancies, but we will continue to sell non-performing assets if we do not see a clear path to generating rental income within a reasonable timeframe. Our balance sheet is one of the strongest in the sector. Our credit facility has plenty of capacity. As I mentioned earlier, we have no outstanding balance. We have no material debt maturities until mid-2024, and we have the industry best 12.6-year weighted debt maturity.... NNN is well-positioned to fund our remaining 2023 acquisition guidance and beyond. With that, let me turn the call over to Kevin for more color and detail on our quarterly numbers and updated guidance. Thanks, Steve. And as usual, I'll start with a cautionary statement that we will make certain statements that may be considered to be forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to these forward-looking statements to reflect changes after the statements were made. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's filings with the SEC and in this morning's press release. Okay, with that, headlines from this morning's press release report quarterly Core FFO results of $0.81 per share for the third quarter of 2023. That is up $0.02 or 2.5%, over a year ago, results of $0.79 per share. First nine months, 2023 results were $2.42 per share, which represents an increase of 3% over prior year results. AFFO for the first nine months was $2.44 per share, and that represents a 1.2% increase over 2022 results. As we've disclosed, since 2020, the last page of our press release provides details of the pandemic deferred rent repayments. As tenants fulfill their deferred rent obligations, the repayment amounts, as you can see, are slowing from $14.5 million in 2022 to $3.1 million in 2023. Then at the bottom of that page 13, we've provided pro forma per share amounts, excluding these repayments in both 2022 and 2023, to provide a look at the recurring fundamental per share performance. These adjusted results show nine-month per share growth of 3.9% for core FFO. That's instead of the 3.0% headline number, and also shows 3.4% growth for AFFO, and that's instead of the 1.2% headline number. So 90 basis points higher for core, 220 basis points higher for AFFO, versus the headline numbers. We think this just gives you a better picture of the core fundamental operating results of our business. But overall, a good quarter, in line with our expectations. Moving on, our AFFO dividend payout ratio for the first nine months of 2023 was approximately 68%, which resulted in approximately $141 million of free cash flow for the first nine months after the payment of all expenses and dividends. This equates to a $188 million annualized free cash flow rate. Occupancy was 99.2% at quarter end. That's down 20 basis points from prior quarter and year-end 2022. G&A expense was $10.2 million for the quarter, representing 5.0% of revenues and 5.4% for the first nine months of 2023. But our midpoint guidance for this line item remains at $44 million for the full year of 2023, which would put it close to 5.3% of revenues for the year. We ended the quarter with $800.2 million of annual base rent in place for all leases as of September 30, 2023. As Steve mentioned, today, we increased our 2023 core FFO guidance, increasing the bottom end by two cents and the top end by one cent to a range of $3.19-$3.23 per share. AFFO guidance was increased by the same amount to a range of $3.22-$3.26 per share. This new guidance suggests 2%-2.5% growth in core FFO for 2023 versus 2022 on the headline number. But again, if the deferred rent repayments are eliminated from both years, then core FFO growth would be in the 3%-3.5% range. Similarly, AFFO per share would go from around 1% growth at the midpoint for 2023 to around 3% growth, if we exclude the deferred rent repayments. As we previously discussed, the more modest growth in per share results for 2023 reflects, in part, the high bar created by last year's 9.8% growth, the lack of tailwinds that were helpful in 2022, as well as the slowdown in the scheduled deferred rent repayments, as noted on page 13. The 2023 guidance and the key supporting assumptions are on page seven of today's press release, with the only notable change, as Steve mentioned, the $100 million increase in our 2023 acquisition volume guidance, now a range of $700 million-$800 million. Switching over to the balance sheet, we maintain a good leverage and liquidity profile, with $1.2 billion of liquidity at quarter end. We funded approximately half of our year-to-date $550 million of acquisitions with free cash flow, disposition proceeds, and a little bit of equity issued very early this year. In mid-August, we opted to issue $500 million of 10-year unsecured debt with a 5.6% coupon and a 5.9% yield. While we really had no pressing need to issue debt, we just wanted to stay in front of the curve in what appears to be a growing supply of debt issuance from a variety of sources. But as I've said, we'll know in a couple of years, the wisdom of issuing that debt. So far, it feels like a reasonable call, and there is also very real value in maintaining our low balance sheet risk. Our weighted average debt maturity remains over 12 years, which will help us slow the coming refinance headwind that all REITs are facing. All of our debt outstanding is unsecured and fixed rate. A couple of numbers. Net book to gross book assets was 40.9%. Net debt to EBITDA was 5.4 times at September 30th. Interest coverage and fixed charge coverage was 4.6 times for the third quarter. We are happy to see more attention and discussion in the marketplace about capital allocation. You know, those of you who know us well have heard us banging that drum the last few years. We believe it's one of the more fundamental issues for any REIT, or frankly, any company. Valuing equity, equity adequately, whether that equity is produced by free cash flow, disposition proceeds, or new equity issuance, is at the heart of growing per share results. In our opinion, a low view of the return requirements for deploying equity and debt capital likely leads to suboptimal accretion when deploying that capital. Not valuing equity capital appropriately also frequently leads to asset growth over time, that is, in our minds, not sufficiently accretive to per share results. So we're, we're glad, the topic's getting more attention, unfortunately, only now that the capital markets are rockier and the pie eating contest of recent years is producing some indigestion in every corner of the investment world. Over the last few months, we've been talking with investors about what the world might look like in a no new equity environment, which is why we're glad that our free cash flow from operations relative to our typical acquisition volumes will help us better navigate that rocky capital market environment. We will likely give more details in this regard on next quarter's call in connection with our 2024 guidance. So in closing, I think we're in relatively good position to navigate the elevated economic and capital market uncertainties and to continue to grow per share results, which we view as the primary measure of success. We are mindful this is a long-term, multi-year endeavor. The fundamentals of our business remain in good shape, occupancy, releasing, renewals, acquisition and disposition volumes, and cap rates. So we feel good about where we are at the moment. With that, we will open it up to any questions, Ali. Thank you, sir. At this time, we will be conducting our question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, and you may press star two if you would like to remove your question from the queue. As for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Thank you. Our first question is coming from Josh Dennerlein with Bank of America. Your line is live. Yeah. Hey, guys, appreciate the time. Maybe I'll just start with a big picture question. Just kind of thinking through the dynamic that we're seeing in the public markets. Like, how should we kind of think about, like, the response in the private markets for cap rates going forward? Hey, Josh, appreciate the question. Steve. Yeah, the private market, we don't bump into them, especially in the last, you know, 18 months, we haven't seen them at all. However, the bigger picture, as far as cap rates, we're seeing a trend up in cap rates for NNN's target market, and more it's a result of NNN still being selected. If I had to do $1.3 billion-$1.5 billion, my selectivity goes down, so therefore, I have to win more deals. But our relationship with tenants who are sophisticated, understand with debt markets, pricing, that cap rates have to go up. So we're seeing a pickup, and you see it in the numbers, you know, 15, 20 basis points a quarter. And I'm expecting that trend to continue through the first half of the year. Second half is too far out to speak of. Okay, appreciate that color. I think, Kevin, maybe just, maybe something for later, but just kind of curious. I think you started to mention it a little bit. Just kind of, I think you have pretty good free cash flow. Just kind of how you think about how you can kind of layer in acquisitions with that free cash flow without additional equity, and then just like... I'm just trying to think maybe what kind of, what kind of base rate we can get out of you for volumes. Yeah, and we'll go into more detail as we lay out guidance for 2024. But the math that we've talked generally about, and this is not guidance, to be clear, is, you know, if you think about $180 million a year of free cash flow, which we, by the way, charge in our minds as we think about deploying that capital at about an 8.5% cost to us, it's not truly free. That, you know, you could leverage that, you know, call it $100 million dollars.... round numbers, maybe a little bit more. And so that would create around $300 million of acquisitions. And then if we're selling $100 million of properties in a given year, so disposition proceeds enter into that equation, you know, that would take acquisition volumes to around $400 million, potentially, in a very leverage neutral, you know, light capital market footprint kind of way. And so, that's the way we would think about it, I think, generally. But, well, like I said, we'll look to provide a little more detail on our thoughts on that, next quarter. Okay, appreciate that framework. Thanks, Kevin. Thank you. Our next question is coming from Ron Kamdem with Morgan Stanley. Your line is live. Hey, just a couple quick ones from me. Just, I saw the occupancy dip 20 basis points quarter-over-quarter. Maybe can you talk about that and loop in just how bad debt is trending and what's baked into the guidance? Thanks. Yeah, I, I wouldn't read too much into that. As folks know, we had three Bed Bath & Beyond that went dark on us, as they filed for bankruptcy, rejected all the leases. So that's a chunk of that 20 basis points decline, and the rest is a little bit of noise. As it relates, and, yeah, more broadly speaking, you know, we don't have any I mean, look, we got a lot of concerns because we lease properties to retailers, so we're perpetually worried. But, but yeah, in terms of our exposure, and, and, how we're thinking about our, not our reserve, but our, our guidance, incorporates typically 100 basis points of rent loss for things that might not go well. And so, you know, this feels like at the moment, it will be a despite assuming 100 basis points, this feels like it'll be more of a normal year of, call it, 40-50 basis points of kind of rent loss from a variety of things, which includes tenant bankruptcies. And also in the weeds that, you know, it's the things that we do on a daily basis as we're thinking about, you know, future renewals and dealing with those from maybe a defensive position and making sure our to support our occupancy and consistent cash flow is, you know, at times it makes sense to trim rent a bit to get lease extensions. And so, from time to time, we'll do a little bit of that. So all of that's baked into that kind of rent loss number. So far this year, it's playing out as a fairly typical year, which for us is 30-50 basis points of rent loss. But as I said, we assume in our guidance that we'll lose around 100 basis points. Got it. And that's, that's pretty conservative. So just going back to the acquisition, you know, obviously over $200 million this quarter, I think all your peers have talked about, you know, basically activity slowing in this rate environment. So I guess I'm just trying to figure out, is this an environment where NNN is potentially better positioned because you're only trying to do $400 million-$600 million? Or is the messaging that you guys are seeing slowing as well, and we should think about acquisitions next year potentially being down and so forth? So I'm not asking for guidance for next year, obviously, just trying to get a sense of how that pipeline is building and if you guys are being impacted just like your peers. Thanks. I think the opportunity set is still the same out there, minus, you know, some M&A activity that has definitely slowed down. As you know, our pipeline has never really been more robust. It's more NNN being disciplined when allocating capital to what, you know, acquisition opportunities are out there. Yeah, I'll let Kevin you know, talk about, you know, 2024, but as far as the opportunities out there, it's as good today as it was six months ago, and cap rates are increasing. New money going out the door is higher today than it was two weeks ago. Yeah, and as it relates to next year, you know, we'll give more detail around what we're thinking for that number. As just heard on the prior question, you know, we have, in essence, kind of capital in hand, if you will, to do a decent amount of acquisitions. But, you know, it's frankly all dependent on kind of returns. I mean, and so we're not particularly focused on asset growth. We're trying to grow per share results at the end of the day, and if that's a little bit or a lot of acquisitions, the returns that we can achieve and the accretion that we can achieve will drive kind of our thought process on acquisition volume. Helpful. Thanks so much. That's it for me. Thanks, Ron. Thank you. Our next question is coming from Eric Wolfe with Citi. Your line is live. Hey, good morning. I just want to clarify on the guidance. You're still assuming 100 basis points of credit loss versus the 40-50 basis points that you're sort of trending to. And then if you could just remind us, in terms of defining that credit loss, does it, you know, include, say, like, the vacant properties that you decide to sell and not being able to recoup the full NOI after reinvestment, or do you sort of think about that separately? Just trying to understand what's included in the full credit loss. Yeah, that's, that's fair. Yeah. So yes, we are assuming it for the fourth quarter, 100 basis points. Granted, it's only a quarter's worth of rent, 100 basis points. And no, to your second part of that question is that, yeah, it would, it would not assume, you know, reinvesting disposition proceeds of a vacant property. That's, in our minds, a little bit separate bucket. And it's, it's a little bit of a sunk cost in that, you know, a vacant property, you know, it may have had, you know, some rent a year ago, but of late it has the rent obviously is zero. And so, there's potential upside, obviously, from reinvesting kind of those proceeds that had no return for a period of time. But yeah, that's not included in our thoughts around the 100 basis points. Got it. That's helpful. And then, I guess, just given the rise in rates that we've seen, I mean, would you expect that cap rates would, say, move over 8%? And if you think about just the cadence of your acquisitions, obviously, you mentioned the advantage you have in terms of free cash flow, being able to fund those acquisitions without incremental capital issuance. But would you rather hold a higher percentage of that cash now, just thinking that, you know, cap rates are likely to move up in the future, or just kind of keep the acquisitions consistent quarter to quarter? Now, you know, in our business, you know, there's not much consistency quarter to quarter. We like to look at kind of the entirety of kind of the 12 months. But yes, we are being prudent allocators of capital currently, where we have passed on deals that, you know, were in the mid-sevens, that we feel should have an eight on them. So we are holding a little cash on the side because we believe cap rates in the first quarter will be higher than they are today. So when the right opportunity presents itself, it is. It's a cap rate game right now. You know, you go back to the, you know, GFC, when everybody shut it down, that was access to capital wasn't there. But as I stated in my opening remarks, we've been doing this a long time, management and NNN. So we know how to navigate the, you know, the capital markets and the higher cap rate, and the proven investment model. So yes, I expect cap rates... It's a long-winded way of saying cap rates will be higher in the first quarter than they are today. Yeah, and this is Kevin. Eric, I'll just add a little bit to that because I want to dial the lens back, kind of, not the next quarter or two, even the next year. But, you know, that is a piece of the rationale for us, probably not acquiring as much as we did two and three years ago. We clearly were tempering acquisitions, volumes at a point in time when cap rates were at record lows, and, you know, we weren't buying 5.5 cap rate deals. We just. To us, it didn't, it didn't have appropriate returns, in our minds, for how we burden our capital, in our, in our minds, for deploying them. And so, so, yeah, we, we appreciate the sentiment of kind of where you're going. We don't think about it too much on a month-to-month or quarter-to-quarter kind of basis. But yeah, longer term, we do think about those kinds of things. When should we be accelerating acquisitions? When should we be tempering acquisitions? And, or when should we be standing still? And so, but we think about those things on a, on maybe a longer-term basis. Yeah. So anyway, I'll, I'll leave it there. Got it. That's, that's helpful. Thank you. Thanks. Thank you. Our next question is coming from Spenser Allaway with Green Street. Your line is live. Thank you. Can you guys just provide some color on what AFFO growth would look like in 2024, absent any acquisitions? Yeah, we're as far as, you know, acquisition buying for 2024, yeah, we're gonna hold off giving any guidance until, you know, most likely the February call. But as Kevin kind of stated at the beginning of the call, you know, we could roughly do $400 million-$450 million without tapping the capital markets and being leverage neutral. Okay. And then just maybe on the re-tenanting side, just given the economic backdrop, has conversations become any more difficult, just given the current environment, as you know, think about re-tenanting or, you know... So it's interesting. This year, year to date, we are actually have a recapture rate of about 87% of the prior rent. But I really. That's not apples to apples to a lot of numbers you hear stated in our market, because we don't like to give capital expense to tenants. I mean, we could and just buy up the rent. So that 87% recovery year to date is kind of a as is recovery rate. But no, so it is surprising, Spencer, that we've had such great success this year. Historically, we have about a 70% recovery rate. So no, we're not having any issues re-tenanting any assets currently. Okay. And then just maybe one more, if I may. You spoke about passing on deals which in your mind have been mispriced. Do you have a sense of what percentage of the deals you've recently looked at, that you ultimately passed on due to this bid-ask spread dynamic? So whatever you hear from our competitors that they've looked at, we've looked at as well. Yeah, we don't track that, to be honest with you. You know, our selectivity, our closure rate, and stuff like that. But what I have seen is deals that I really thought were priced well- ... Then the movement in the market was so fast as far as the debt side, that we pulled out of the transactions, because they became mispriced. But the bid-ask is tightening up. The Ten Thirty-One deals to me are the most mispriced because the sellers are still living back a year or two, and they think they can still get that pricing. The sale leaseback market, I find, is moving a lot faster than, you know, call it the investment-grade market, because they understand the true cost to get the deals done. Where the investment-grade companies can still tap the market and get debt. You know, it's a loan to value opposed to 100% of the sale leaseback. But that's what we find. The sale leaseback market is moving a little bit quicker. Okay, great. Thank you for the color. Thank you. Our next question is coming from Brad Heffern with RBC Capital Markets. Your line is live. Hey, good morning, everybody. Kevin, the ABR this quarter didn't go up as much as I would have expected, just given the amount of investment activity you had. Was there something that fell out of ABR? Was someone moved to cash? No, we didn't, we didn't move anybody to cash. A little bit of that is, and it comes from the split-funded transactions we do, where we're funding the construction of sale-leaseback properties for us over time. And so that rent typically does not show up in our ABR until completion. And so that's why that's lagging a little bit. But with time, that will normalize, if you will, once projects get completed. But as we discussed, I think last quarter, you know, that activity, which typically is, you know, 15%-20% of our investment activity, is gonna be closer to 40% of our investment activity this year, which we like at the margin, to be honest. But that's the piece of that puzzle I think that's probably missing for you. Okay, got it. And then can you just walk through the current watch list? You mentioned the Bed Bath & Beyonds already, but anything else you're keeping an eye on? Yeah, lots of stuff, but that we always worry about lots of stuff. I would say, you know, kind of at the top of the list, if you will, you know, we've got three Big Lots, you know, so we're watching that. We've got two Jo-Ann's. These are all fairly small exposures. We've got some... We're still watching our Frisch's Restaurants exposure. That's a bigger exposure just because it doesn't feel like they've totally got it out of the COVID fog, if you will, yet. But I mean, they're fine, and they're covering rents, but they just are a little slower, and it's focused on a few stores within that part of our portfolio, and then maybe at home, but they've got liquidity in the near term. But yeah, I mean, those are the kinds of names that, you know, we think about. Having said all that, I'm, you know, at the first of the month, I'm not running down the hall and asking if the rent came in. It doesn't feel that dire, if you will, but, we're just watching those, and we feel like our, A, our exposure generally is fine as it relates to tenant credit, and B, that shows up in our kind of rent loss, which, like I say, 100 basis points, we assume is in a normal year, and we won't, you know, hit that kind of rent loss this year. So that suggests- Okay, thank you. Things are going okay. Okay, got it. Thank you. Our next question is coming from Rob Stevenson with Janney. Your line is live. Good morning, guys. Steve, can you sell more of your non-top-tier assets than you're doing at similar cap rates? I mean, a 6% cap rate's pretty good on the LA Fitness, United Rentals, Fikes, and whatever else you sold during the quarter, and it's well below the implied cap rate on the stock recently. So, curious, why not sell more to finance mid-sevens acquisition if you could do that reliably and on scale? No, absolutely. That's, that's part of the exercise we go through. You know, we have the luxury of being in business for a long time, you know, 3,500 assets approximately. So we have a lot of diamonds in that portfolio over the years. But when we look at dispositions, you and I agree with you, that 6% cap rate and 5.8% for the year is a phenomenal cap rate compared to what the industry is doing. But no, we have the opportunity, we're running the math. You know, if we sell something at a six cap, well, you know what, you know, share price. Because we do view dispositions, you know, you have defensive, so you're just improving the quality of the portfolio, but we also look at it, we're selling a piece to the company, so if we sell it a six cap, it's like issuing equity at certain share price. So no, it's definitely could be a higher disposition in 2024, potentially. Okay. And in terms of what you've sold, has it been a high concentration of Ten Thirty-One buyers, or has it been all over the place in terms of the other side of the transaction on dispositions for you guys year to date? No, primarily, it's been the Ten Thirty-One market, and then there's been a couple what we call, you know, owner-users or user-owners of the, the asset. But primarily, we sell into the Ten Thirty-One. Okay. And then, Kevin, a couple of questions for you. The three Bed Bath & Beyond that you talked about earlier, have they been sold or being marketed for sale? Are you trying to retenant them, and what's been the sort of tenor on that recently? ... Yeah, no, plan A is for us, yeah, to try to release it, and we've got active dialogue on two of the three, and so that feels like it's actually going reasonably well. And our rents there were, I think, $13 a sq ft, the expiring rent from Bed Bath, and so a manageable kind of rent situation. Yeah, maybe just a little follow-up. Yeah, we're, we're expecting, you know, 100%, slightly better than that recapture on the Bed Bath & Beyond with no CapEx. Okay, so those are likely to be retenanted rather than being sold vacant? Correct. Okay, and then last one for you, Kevin. Is the $500 million debt offering pre-funding the June 2024, $350 million maturity, or is that incremental capital for you guys, and you'll look to do something on the $350 next year as you get closer? Yeah, I mean, I'll be trying to be sufficiently elusive. I mean, we don't give any capital market guidance. And so, you know, I view kind of money as somewhat fungible. You know, we it does clear off our bank line, which would allow us to effectively take a or pay off that maturing debt next June with our bank line, or we could do another debt offering to in that regard. And so we try to be opportunistic on capital markets activities, and we'll just see how things play out in the coming months as it relates to that. But I will say, doing that, that deal in August gives us more optionality, which is something we crave, in terms of managing the balance sheet, is never to get us in a position where, where we have to do one thing or another. And so, so it just creates more liquidity. The dollars are fungible. We'll see where they all land eventually. In the meantime, they're headed towards acquisitions, and, we'll see the 24 holds. How was the demand on that deal? Could you have materially upsized that at that pricing if you wanted to and just elected not to, or is that where the demand was at that point in time for that type of paper? The demand for that deal was very good. So, after we announced pricing of where that deal would price, we had $2.5 billion of orders at that price. And so, you know, it was four or five times oversubscribed. It was a solid execution. We could have done more, and maybe in hindsight, one day we'll think, maybe we should have. However, that is the largest debt transaction we've ever done, so we did size it up, if you will, relative to where we've operated in the past. And, but yeah, it was a, it was a really solid execution at that time. I'm not sure that the market is as robust today as it was at that point in time, but anyway, yeah, we're really pleased with that outcome. Okay. Thanks, guys. Appreciate the time this morning. Bye. Thanks. Thank you. Our next question is coming from Linda Tsai with Jefferies. Your line is live. Yeah, hi. Can you talk about trends in the sale leaseback market and what percentage of the volume this quarter was done with existing relationships and how that compares to last quarter? Hey, Linda, it's Steve. It, it's relatively the same. You know, it's kind of that three-quarters towards the sale-leaseback, and, you know, that's reflected in our 16.5-year lease term for the quarter. But the trend as far as percentage, it's the same, and it pretty much, over a 12-month period, it's pretty consistent. Our acquisition guys, you know, they are always out there looking for new relationships to grow the company, but we do lean into our relationships, at the kind of that 75% level. Then in terms of the acquisition cap rate being up about 100 basis points year-over-year, 7.4% this quarter, how close is that to where you might have expected to land versus, you know, what you were thinking at the beginning of the year? At the beginning of the year, we're definitely up higher. But as far as starting mid-year, we're landing where I'm expecting, and I'm expecting it to, you know, increase, you know, in the near term as well. Then on the 20 bps quarter-over-quarter increase over the past two quarters, is that like the same run rate for next quarter? It's probably pretty close. You know, you know, as far as new money going out the door, absolutely. It's above that trend. But we have what we call the split-funded deals that we're funding construction that are building the asset. So you have a little bit of a, you know, headwind, because that money we committed three months ago, two months ago, so it's, you know, kind of a little older money. Thanks. Thank you. Once again, if you have any remaining questions or comments, please press star one on your phone. Our next question is coming from Josh Dennerlein with Bank of America. Your line is live. Hi, this is Farrell Granath on behalf of Josh. Actually, just touching on the split-funded developments you were just mentioning. I was curious if you could give some color on the sort of retailers that fall into that bucket and any delivery timing and yields that you can touch on. Primarily, our split-funded, because we only do split-funded deals with relationship tenants, so it pretty much compromises, you know, our quarterly acquisition picture. So kind of automotive services, you know, a little bit of a family entertainment, primarily. Now, as far as timing, we deal with small-box retailers, so by the time we buy the ground, you know, it could be 120 days before it's delivered and they start paying rent. Yeah, so maybe one way to think about pricing on that is whatever our cap rates were, you know, last quarter, maybe that's where the split-funded, you know, was priced, and will play out over the next three to six months as the project gets completed, and so, as just a guide. Okay, thank you. Thank you. We currently have no further questions in queue at this time, so I'll hand it back to Mr. Horn for any closing remarks. Thank you for joining us on the call this morning, and we'll see many of you, I guess, in a couple of weeks at NAREIT. Have a good day. Thanks. Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.