VER - Earnings call transcript Q3 2020

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Operator

Hello, and welcome to the VEREIT 2020 Third Quarter Earnings Call. [Operator Instructions. Please note, this event is being recorded. I would now like to turn the conference over to Bonni Rosen, SVP of Investor Relations at VEREIT. Please go ahead.

Bonni Rosen

us the joining Quarter XXXX for Call. Earnings you today VEREIT for Third Thank

are is our our Glenn Paul today being Chief me Joining Rufrano, call Today's Chief and Robert, is Officer; Investment Officer; the confirmation today. the Officer. McDowell, approximately X:XX at on Chief Operating Mike of in vereit.com There Dial-in at beginning the Relations Financial section. the Bartolotta, our Chief will Eastern call webcast Time Tom our X-XXX-XXX-XXXX be XXXXXXXX. website Investor a code for our replay replay Officer; with Executive of p.m.

Before actual quarterly certain Glenn, are I statements filed results filings, from these may turn will and are would that earnings call SEC including this the facts everyone which differ that differences call, materially remind I these over statements could cause in not detailed forward-looking the VEREIT's like factors our forward-looking. to in report historical to be today.

more SEC forward-looking fully expressly law. statements, by In these addition, required in except update disclaims as reports, any or to our stated as obligation intent VEREIT

the review format today's call. quickly me Let of

and then First, Mike will remarks. Paul, presenting sheet. update give operational brief begin with providing wrap will balance up financials summary, with who followed an our Glenn by Glenn business will by then a closing

you. Investment to will today's over Roberts. the Chief We Officer, me be our the call line opening call Tom for by will Glenn, conclude by questions where joined we turn let

Glenn Rufrano

capital, active stock. reducing preferred Thanks, increasing Bonni, debt and thank allocating us. a for you while quarter, had joining collections and We very and

property capital, October was of $XXX rate highest and including $XXX includes increased the for the XX% million of discuss. for million to at diluted which Rent quarter which collection XX%. in quick effects $X.XX, XX% $XXX Mike collection Here X.X% highlights. million items, are of some Year-to-date, per was will acquisitions. share AFFO of stock we've invested preferred from monthly the QX. COVID-related quarter our

million the million $XXX million partnership. $XXX EBITDA acquired approximately to $XX year and and We our including from decreased In for the office addition, the share dispositions Total million. dispositions office the net of for for company's to $XX to we issued million. the $XXX million, partnership on have totaled Year-to-date ATM X.XXx. contributed $XXX debt X.Xx office industrial totaled partnership normalized

The second quarter rent the and in notably collections. markets pandemic was interrupted ways. many by capital Both

Following activity. markets active transaction froze both the terms capital first quarter, in second, in debt of an and

rent in both activity of gap per us a February in debt activity. rent starting primarily and of However, transaction in reduced accretively, property been $XXX preferred to by third reduced our dispositions investing has recently typically market debt increase and expect Through our original portion be a thoughts, XX% our by financed $X.XX estate been from gap capital proved to different. the XXX% Combining our attractive $X.XX collected of following proceeds guidance stock, of to with share. at dividend in there's asset property and Reflecting quarter, quarter million of from collections, ATM rates, on and operations markets AFFO thawing This management, we of but most left by capital Day in a XX% and have second collection reduced QX increased retained offering, cap mix office options. teams, in leasing efforts QX we now an our increased real the and rent our Labor this year including collected rents these management, October.

property form $X create of of approaching institutional capital fees. provide on returns our alternative asset in Additionally, high partnerships management and revenue recurring investment source in billion the to the

progress number a had We have levers a environment. in to of difficult

our well to A bodes for capital or we April of result be year's approximate guidance. have income original for estimate. deferrals year of expect Projected reserves percentage we X% would for estimate general far the $X.XX collection or off adjusted in activity, stability. our AFFO and March lower this this than in not and market a approximately As $X.XX, expected

intact years real and trillion have universe X we billion single-tenant XXXX, dispositions. a roughly Our consider $XX team, years around with lease on have tabs average as real experience, and monitored tenure since year. estate acquisitions market keep sourced estate We of of net the of and closely XX $X.X the

year-to-date. the activity, were With $XX in post-summer at pickup we billion

continue pipeline preferred stability and stock range property million, in year, billion be both allocate Operating and will for Chief we turn securities partnerships. will from choose to the making we emphasis reductions $X.X over McDowell, and to Paul? million which our could QX program will we now consider call the could to I portfolio an acquisitions forward, further provide to discussed, of million QX option growth chosen After $XXX Looking as provide and next of include our I between $XXX to $XXX prospective Officer, active institutional QX By mix to on active pipeline. in dispositions, cover our operational through our capital. property acquisition will with Paul update. decreasing our just alone

Paul McDowell

Glenn. Thanks,

to executed of million retail, industrial, as Total normalized square leasing with strong We of to had collections. and X.X teams activity, of continue of feet increasingly over square XX,XXX on XXX,XXX feet are highly be return routine roughly another office feet, rent renewals. which property Our pivoting quarter day-to-day more we early leasing, XXX,XXX square feet XXX,XXX but management very management XX asset focused square restaurants. XXX,XXX included and rental feet collection square feet of leases square on activity of to were

renewals. basis at which total has of early the on we a square in leases X.X XXX% For built rents newly extended have been square been initial leases ended approximately also XXX XX.X%. healthy additional million feet have Leasing activity roughly at cash many an these million positive of increases. feet, a recaptured very on prior basis rent of year-to-date over Occupancy with leases, a and of renewal quarter X.X

early are front so see, the best we being on is in This have done can has of feet million renewals by we consistent you our focused very this a effort. schedules, of square expiration which been As year. X.X far illustrated

Over last past XX% X%. expirations In through the space, X for through our feet XX% years, the remainder by rollover average. or have square renewed XXXX office we has of office years retention been X which X X.X%. quarters, to leased portfolio have just next of XXXX the by reduced we in close reduced has close Office for to that the on XXX,XXX XXXX to

for been and have leases in In placing on sale. those extending addition, then properties we the successful market

properties at disposition perfect a lease We approximately extensions rates X.X%. averaging X office with This new sold example. is cap quarter

Turning to our COVID-related tenant activity.

XX, following. had October we of As the

X.X% last due an and of our The in date entered months, For October the average repayments July for the is XXX% deferral of XXXX. year $XX.X to repayments amount average includes were $X.X to of with period X of tenants quarter XX, into which X.X deferral total agreements XX. XXXX with agreements $X.X approximately for from million, third or XX QX, due weighted Through X.XX% million, XX% we October and months in XX% deferral representing subsequent by reported rents. weighted executed tenants. payback made were of $XX.X is of rents. updated Executed deferral signed to This deferrals agreements for brings QX million, the

as X.X% million, for October. well QX The last by In of Mike elements. nearly blend addition, where covering the square rent mentioned discuss X quarter, standpoint, $X years evidenced tenant other period free within immaterial were abatements feet. weighted we made X a abatement From able up approximately had and section. agreements, pure accounting volume now will we impacts as as have we the on extend into to in ended, average COVID-related leases lease entered including as extensions, XX.X largely were term his extend has by various we leases of and million the amount XXX an beneficial

let's about more our Now portfolio to and we performance where date. talk are specifically

X Glenn has collections, past steadily improving as the Over have we months, mentioned. seen

denominator came recently, collection October we percentages XX%. bringing at driven and were XX%, public on rent rent not in tenancy, at was disclosed breakdown, XX%, to XX%, is geographic August are XX%. and private QX type rents collection July QX industry diversification, most and strong we and investment-grade underpinnings Our these versus the of ownership property for adjusted our pre-COVID location. results any The September by based XX%, have These relief.

our As industry top rental previously, industrial to in our office, exposures collection. such allocation grocery, warehouse our we've pharmacy, discussed retail XX% convenience and helped has including discount, clubs and as necessity-based

our other paid XX% the collections in addition, October. industry all full notably dining, In in October, quarter. tenants improving during XX%, at top and our now casual XX with over QX In for effectively rent of average

were Over in retail, within with which of and recent view at collections XX%, almost investment-grade tenants and a within are of almost the October. for public very are public tenancy retail, XX% XX% portfolio supply and in Our tractor the rent during positively. portfolio approximately overall we approximately total strong XX% the of XX% XXX% and the quarter rating component and respectively, now XX% our

credit closely, our particularly We continue quality to monitor our exposures. tenant's larger

to experienced we of a this ones far, COVID So year percentage have now. as small in no material with due bankruptcies

Lobster investment investor. size, and to enhanced see this Thai Lobster restaurant almost approximately Lobster by portfolio, the particular, We stress in the of the Thai where loan as Union major Red supplier Union's this mid-XXs gratified Red Confirming pre-pandemic. to the with than headquartered quarter during pandemic and and given a Seafood the the and team. Alliance investor a brand. deepens the closely. the first $X Lobster's of current as have clearly In view, strong with care. supplier which owner price announcement in of exposure Gate And a our Lodrup, traded from mid-XXs, transaction led XX-year during Union's positive, remains level ownership effective has continue of Capital. to financial or Lobster's no term CEO, management Red from remaining to was subset in Red we is the equity that existing integrated $X improvements Kim it completed and relationship Additionally, essentially Red commitment Group Thai were credit enterprise as and pandemic value the both Union Thai executives, more was international supplier of management, theaters publicly market we Orlando, a billion. in said, seen with Thai of current That movie Union large Golden led have acquired flexibility, now seafood we coupled Lobster, as to increased view on called the a the the the a Red global transaction pricing watch an child XX% credit by we

the positive. Topgolf announcement viewed recent also merger between credit We a as Callaway and

diversity geographic Our also rent helped us in has collections.

uptick in opening, does having to an seeing back our show collection roll are October or cases, and on states fully effects. yet some any many material Although are delay rates not

top collections of of We our are monitoring those presentation like on portfolio carefully each do all for these See collections to circumstances, Slide to I October who efforts. to rates were states investor outstanding XX overall job information. collection our thank and our an of the property continue in of date further and reflective teams would segment. for approximately drying are

Our dedicated with of teams property contact impact to management asset their understand businesses. remain on tenants COVID-XX our the type in

details on sector. Further We today. closing, so have collection portfolio's can far, our for been essentially to presentation at we've portfolio approximately rent now segment resolutions which call are echelon with for relief be except turn over and rental the found will In investor information filed in pleased Mike? rent. numbers Mike. our I X.X% all the and of our performance very completed top requests,

Michael Bartolotta

end. for of related effects COVID earnings. those us all and third our our out cover AFFO I'll included of items are quarter totaled the rent October for deferral deferrals of are the million of some the period at Thanks, a quarter contain on This is rent break which $X.X which amount you abatement of $X.X totaled significantly which to and quarter and amendments, some related flows to and and reduced XX, for Paul, for being from AFFO. the not is pandemic probable, joining of as million. represents of extend tenants and as for $X.X Reserved not I'll included. on amendments $X.X highlights for third AFFO, QX was $X.X negative that million in provide QX the reduced. cash cash quarter rent COVID probable impact was in QX of full pandemic, and XX, today. rental $X.XX on of financial specified thank these collection expect details that million, basis related and significantly rents to agreements million And AFFO. our These be too, we decrease This this, COVID-XX $X.X categories: quarter. executed That X entire the amount next reduces This QX of represents items of future where second also million. accounted rent expected $X.X impact following to Executed blend to collection in related are the included of million a September deemed general revenue XXXX. rents the of an allowance

our to Turning balance sheet.

company cash the approximately of $XXX $X.X equivalents and $X.X cash had undrawn. of end credit of million of the corporate billion, As liquidity third and the quarter, facility billion in comprised

our year for $XX.X asset in increased $XXX reduced was In quarter, addition, to and ratio secured XX%. the million reduced the third the unencumbered million by bringing amount total to debt

the $XXX million This VEREIT's completed XX, XXXX, outstanding. million quarter, of $XXX leaves July stock Series approximately with redeemed XXXX. on million September During and $XXX X.X% the $XXX million preferred on company XX, F completed

leaves In million bond is addition, its year-to-date, XXXX, to due the company senior in X.XX% the which amount of December X.X%, $XXX.X at our notes available remaining with second of million out issuance principal. along from take convertible our repurchased The and covered liquidity. quarter was $XX.X able

for filed split, XX.X subsequent gross average quarter company beginning proceeds million December market which noted XX, earnings December details be found as stock its the issued effect X release, on equity XXXX, $X.XX, and at on a under Also, $XX.X at scheduled on X in the has million the trading this reverse More XX-Q is weighted with approved take to a a Board During to post-split our morning. program. XX, price our basis of XXXX, in can our offering September of XX. for shares

years, with at was that, gross back and at our Glenn. is Our ended fixed are investment debt our estate charge EBITDA weighted healthy real to to coverage remained X.Xx, debt The X.X debt And ratio of to normalized turn we net XX.X% Net fixed. duration call I'll XX%. ratio the average X.XXx. and

Glenn Rufrano

Thanks, Mike.

this earlier, reduction invested capital As our was dividend I from retained quarter. discussed productively

which As the dividend, QX basis had to Board a decided such, in maintain XX% has is current the for a ratio growth. payout

We revisit to with and XXXX the expect increase dividend guidance.

a companies. and October high of you heard As in is larger quality Paul's percentage diversity, function XX% of presentation, collection a public credit

this feet keenly of are teams operation Our and to reduce have renewals we leased focused future square X.X on million early expirations year, exposures.

has Golden Our relationship with Gate Capital been very good.

the are Thai Abatements be accounting However, the Lobster, we Union, were credit half the nominal presented Deferrals from new are QX balance as owner over QX pleased and and on be reduced rents. expected with greatly minimal expected to been current QX Mike Red have are period to reduced statistics. and markets. rents. to in same QX are of also sheet on

our preferred capital of decreasing also to quite X.Xx while activity reduced $XXX a over by bit net having quarter, from While debt-to-EBITDA X.XXx, was the million.

season, and remember that, workers. health now responders open call essential to support winter questions. this for enter up With care professionals, we our first the As I'll let's

Operator

[Operator Instructions].

today from first comes The Haendel St. question

Mizuho. of Juste

Haendel St. Juste

narrative. think exposure perhaps Glenn, to diversification, impressive helped indeed, other still think rent at I you discount curious you you the We your of you're is a growth up certainly Are collections I'm for by peers. getting here? lack on mentioned. credit meaningful XX%, it to trading a But a why things guess high-grade don't

I'm perhaps So on do you curious the it close I is gap? guess of to and net can perception thoughts what some what your

Glenn Rufrano

we not the the an our the market quite first feel little But a peer is We're so the the million relative compared last buying production in pretty $XXX our capital, quarter allocator issue. looks our of quarter, back your of press group, And bit pretty that and of is We've Haendel. clearly production peers. else in at in as acquisitions. had anybody I We growth growth, It a third a take level an felt about. disappointed acquisition. well be to point, that good to over third we quarter, or may trended

done business it the in for of we're We're not benefit So growth the making allocations sake deals. we for the of business have in We're the wisely. and mode in of shareholders. our making feel deals of the making

As a a preference investment rate risk has gave the see understand do we in in look Reduces many assets. of couple I'll market cap people's a of the at press, debt a effectively. because gives go We X.X% good very The the forward, it's from And back to we equations. assets press safe for standpoint. us benefit ways. they a us --

portfolio have it, be refresh always are the into instance. tone they put because to however, Assets, it, for to WALT, important

look WALT were and the we made acquisitions was you dispositions XX X. average the at the this If year, years

by standpoint, portfolio and disposition in So being in active -- both acquisition an acquisition we from benefit portfolio, total. the the

get we'll It's growth averaging been year, about X.X%. it also stability. have also We also assets And in provide -- assets. provides Each some growth.

million forward, assets. Going an it but be be We've estimate given think over lower, press. don't of quarters. be with will to I $XXX million X higher. based be upon combined could next will also the it That $XXX growth can our

We're to options. have options. happy We have

growth capital, mindless see we not And assets. market buying upon And of our allocation of based just so the growth. the will will our be --

Haendel St. Juste

wanted it. it. Got Got to step bit. And for just back a

few. you've sheet, still joined, longer set VEREIT of now company loss X seriousness, in X -- to CEO world. of exposure, for COVID the in for been that years. achieved over out the as set balance Maybe goals But you net You've key you've name delevered the reduced you just time stands it here feels a all when litigation

VEREIT over next where initiatives portfolio X or you guess, what of larger see been, do has the company, years? targets is I kind today, the key for contemplate say, you as it as So where

Glenn Rufrano

it's question, a big time very question. frame. not going a to just good sure I provide try answer and for an it big I'm I down it X into years. it's components. to a But if Well, X break that's were simply would

strengthen X started Our back let's that. back strengthen to elements this We original portfolio. to sheet can and in continue go would portfolio, balance as plan the strengthen most let's out the with XXXX, the important X I

we've well do how our collections, by see can but can better. You always it we strengthened

it, the how We're we thinking a one, want diversification time. and make number rent, sure been us that about can as tenants important long Paul and most here, our on and frame part. as we our works. do pay our And change X-year around right the about. in to for order I the for So today, talked and assets we that, keep about Tom be that We're and portfolio, the not just we'll would has over That's that saying Mike certainly time eye to always but have in fine. to portfolio talk you've

sheet, we then. balance by agencies In by back BBB. had terms X of a and Today, goal XXXX, back BBB- We one. had the goal we're we equivalent or of the were BBB investment-grade a not be in to

goal be to want BBB then and by see that time. can point We three all Our move BBB. in to is be from we how

than here, in that that's goal I that a lot sooner X-year and period. meet a that. So hope is will we

can are preps which rent. spreads, making Financing sure of the we and Today, methods doing number with essentially a dividend, created opportunistically right you variety our about Third financing and side collect you with our Number a two, grow of And we the is would be one. are million I've others. doing. you obviously, which balance reducing we how talked of your the which quarter, That's look spreads, collection is growth. this by we've look at with $XX sheet equity. debt When at we we growth, by and growth grow. how

of As use the be continue the in the will It's to growth we're is figure sheet, us. shape. effort And sheet. we another pretty -- good out want of assets. X-year the to the right-hand for balance next how left-hand balance there, part to I understand. that and side The is

a our we have assets, portfolio. well of fit in group We believe,

quick industrial. investment-grade on some be discount industrial non-investment around And for revolve we that. acquisitions and see if grades. sheet, primarily noninvestment-grade Our expand will could may our restaurants, service, wouldn't we but build-to-suits, retail, It balance bad

types which into on the Middle it's it, continue expanded through the we've our to seen But positions. expanded as investor. or to Eastern acquisitions, grow, office over We with you've investment-grade balance industrial and have do X find will will our whether next we some we KIS, sheet different not property years alternative partnership ways with different

you of on we instance, about For million project. industrial investment-grade had piece last mezzanine an a paper $XX we quarter, told

of piece controlling It mezz program. $XX part events new subsequent project. partnership. out product good a a another quarter, running million it. it's our a $XX for Tom on us. starts our by was for This investment-grade of actually industrial Roberts million is That's institutional But product

development a come for have We that mezz us to these group pieces.

to a we important very will next That's so for grow. look continue X And ways to alternative over years. the goal

Operator

Next JPMorgan. from of Anthony question comes Paolone

Anthony Paolone

clarify, one, I about the first think Glenn, and you want just dividend, comment, made XXXX guidance. increasing the with So revisiting to think, a I

print? that XQ does assume on the So

Glenn Rufrano

not how our would we it I'm I see. very without we of this We next very don't next unforeseen hope and year, closely, to can very left the in enough we our know. months this We we give give know guidance this mean what event, our sure understand going much I which next year, bold for be Tony, know important would would the the be bold relative to February X to the we the we're to But would pandemic in don't know we and watch that guidance is of don't with happens market felt year. the can hope it going watch weeks but guidance open tenants over some confident, closely. and February XXXX just would year. we leave that I is would cadence, we're in portfolio for thought were how to normal give But would I be we fact pandemic. few What year.

Anthony Paolone

$XXX next you you then million $XXX the of had to course do deal $XXX do I pipeline, what on Okay. the million over quarters. of of into disposition the on joint the the mentioned of some million, guess, you side? of Or think share? very one, couple And you all to ventures? And think do $XXX that that that go million is then two, does

Glenn Rufrano

balance The million of that's and and joint we acquisitions $XXX year. the us. That some of ventures, first is would to That's the $XXX next sheet, hope in have million quarter separate. certainly

So item $XXX that's separate a the $XXX from million. to million

terms with dispositions, In dispositions enough $XXX fourth dispositions $XXX are can that we the the to as mentioned, have now million. million quarter, of in close I there first that we believe the we to finance and

So the dispositions that would certainly in range. be

Anthony Paolone

Okay.

does if suggest do you're keep get to you just So cash do flow, capacity getting the more those little out, out, more things as net did of could free equity crafts a up? you come then that or

Glenn Rufrano

relationship either. it's And do return we option assets. like if like that the to do that. could of risk-adjusted we We a to We more being preps feel able some

frankly. at We would will very So open. we'll of the the But we a to that point allocation make. like in do allocation decision that capital decision, that's this keep combination both, time,

Anthony Paolone

Anything the just thinking that Okay. on note known then last And move-outs be about? are we lease question XXXX should rollover. of

Glenn Rufrano

to Paul. hand I'll that over

Paul McDowell

during rollover too year. few year over end the the been activity now, back around retention we're had that towards -- right to And large do the XX% we that in most to some the much for of years. don't has year. of retention expect the good the course Look, roughly Okay. change is the past us coming of industrial past We have in run we've

quarter. fact, In of most in very the last it's

as So sense we'll a through expect move to next we have where better of we be year. retention

Operator

Evercore Sheila The from McGrath of question comes ISI. next

Sheila McGrath

a wondering Board to just picture big on I the was payout XXXX. for the know your but higher choose you -- when Glenn, dividend thoughts I it's wondering, decision, re dividend

a If growth? more such invest equity to flow your then more about think sheet cash quickly enhance to that conservative get can retain to to without as external Just a that? maintaining than should pre-COVID wondering ratio payout and how you'll better balance you're you a means committed we payout,

Glenn Rufrano

expect good I a it's view think point. was I just at were probably But, our ratio. which high out, back and But didn't want XX% about $X for to yes. you to XX%. with on -- me XXX%. remember, the let I've number that, would very explain this could to we and agree We say get got We if would that. not the you there. to point, billion started litigation XX% and XXXX We before, a in pre-COVID, your the get us to cost payout But said

get but we there In terms be we'd could to. traditional XX% may time. to where want We more that know a over ratio XX% get of to

reward And so increasing ability when to the we start to everything but about, shareholders our we we capital the growth, talking dividend, to for want supporting you're are consider this going use for us.

to the So it may but traditional we will take lower at consider time there. be some what get the range may could We end, be.

Sheila McGrath

motivated restaurant And more in collections, bounced XX% new October. Great. casual there terms collections restaurants open in now? up lease Is just that because to the then are on the were Or that higher? dining Okay. there place

Glenn Rufrano

Over to Paul.

Paul McDowell

to to get they're it businesses a able as were pandemic it's they of our generated were they do business to their able during flow, recover cash to and businesses as right-sized as to the question answer paying that able flow as again. there, cash to rent for the reopen generate of to more environment were begin more that able dining they current that, get to tenants beginning briefly to go orders both and and rooms the is Sheila, result primarily their

you're found dining is footing, above those rent, dining pay brands, directly know, most brands and casual their they're our is it XX%. through casual seeing are almost largest you better and as the our concentrated of concentrated all -- As of that collections able flow to of to in some

Operator

Spenser question Street. Allaway comes of Next from Green

Unidentified Analyst

metric? rent in level concern And filling within But restaurants. have provide Josh I are in industries are any changed some this high coverage aggregate is looking there retail Spenser. you just This how the for you provide and that levels pandemic? retail at could curious, of through for on was color coverage

Glenn Rufrano

part as that dining, you're your cost a retail. been the a question, analysis total of for think first casual we the we that about And X.XX I do about an cost had WALT we measuring X. to put full have concepts. we out The and we occupancy have was But general the last for showed talking have number X.X. occupancy target we And of well

want next pre-pandemic expect to their occupancy forms very they good the pandemic certain and at a that's come have on restaurant They them that? they premises not X as now out good basis, tenants, to pre it's pandemic their dining cost We to in caused cost. as they our the costs restaurants of speak occupancy coming business reasons know best now occupancy pretty honed to get our in or back. anything hope We Paul's were answer, that. levels, be now prior it's with business. of which how many good Paul, capital opened. terms but would that have so that they not on handle all of going year. good They business. put in Now in, of had and off coming we you percentages as well and add on have tend to were doing their Where of to is to were it's and do don't we did back occupancy We although that rethink in shape very revenues rooms of today, an are

Paul McDowell

if number QX Yes. impacts on Page as tenants COVID we'll presentation by quarters an of investor I'd our we on rent by look report that XXXX There basis. XX, go number. closely many coverage in annual But has at our say, fully That are watch number on show impacted X.X%. not impacts. because to been yet us in COVID some the you that

So cost, our the yet from an before mentioned, was both several healthy, on at for we and rent-to-sales of very have restaurant tenants, full a occupancy pandemic, WALT to perspective. But as full Glenn coverage. portfolio beginning the see our from impact WALT the perspective

in their the amount are portfolio we're still and so significant a at a of able reduction collection. and that XX% And a in able to rent to they pay quite be seeing rent, sales absorb

Unidentified Analyst

leases you you give color you mobiles bit some thinking -- And concepts little or are helpful. you if that recycled capital the what expecting? those can next accretively? year would be That's the And some in you're spoke and of if tenants you're expiring an about about -- then disposing about provide us pool? Can a

Michael Bartolotta

Yes. I'll okay. let Paul even

Paul McDowell

look X.X% are if expiring rents in you number So ago a in was year have of supplement, you'll just that XXXX. note, that X.X% we to last and And our X.X% quarter. see

in renewals. did we my focus X.X continue I square we early mentioned And So Glenn early on mentioned, million remarks, I think feet. of to renewals as

XX% it's on mentioned, be So is towards from to perspective, expect to end year particularly And been next achieve towards able we we to really heavily several years. industrial footage that. year. year. office I as this pretty XX% retail, retention past the that portfolio, that It's in industrial very a in square over of roughly a from weighted percentage tail be the perspective, with than different the focus well-laddered the of next to between restaurants, and expect still rollover the we've most industrial don't that year, is the We

Operator

Lucas comes Chris question One. Next from of Capital

Christopher Lucas

from as perspective asset allocation of the in investments? or your the than X, I you of your permanent take that sort more does sort that business go terms relates is make and sheet I Glenn, X sort the guess targeted a risk a guiding a of, attractive the guess the preferreds that versus investment of investing IRR balance rather What you've flat and do to decision the opportunity guess, just new it to it to back of taking environment preferreds preferreds. just got in I out to of capital in lines your I yield acquisition acquisitions. on wanted would

Glenn Rufrano

The flat. point come back I'll it's the that I'd X.X%, it and real it's is other point out, on and your question, -- to is then preferred

So you don't get the growth.

don't We get right? You also EBITDA, that, understand Chris.

of number who our what include an do shareholders is So But as debt. important it consideration. that's we a get

we So an to multiple. believe we is get debt a issue which reduction, do relative

can you and accretively so the press. debt get multiple we both get And think time sides take a on it out with any you increase,

that's the the spread at cap relative you -- number buy for know that growth. so those We're the an is WALT, to is the closer We if considerations The assets. looking to important. do considerations, economics WALT other. do you your least having that efficient in, instance, -- rate. assets. first year just at you as better. a And look to that when a X frontier, X are go of in But there XX terms important to to plus Now X.X% if very from question only get you be what's at where We the that pref. it has which the other pref the there X% is we look has

have portfolio to that multiple. we so a gets And us want structure better a

we're or not us we're And thinking we're growth. growth, about assets growth, X only of can AFFO when get both thinking them, multiple thinking multiple those prefs about the growth. So about acquisitions,

consider appealing. those at acquisitions to of the we spreads as looking But your some look to forward. we'd make all And so point, very X the elements, we're X,

Christopher Lucas

policy, taxable mentioned just just how minimum feel of And end. guess, you Getting gradually closer it that to would XX% does of then range out lower or the the more you're... mean of you're XX% run to that stabilized sort be ratio payout below dividend sort Is you'll if like on unclear, the of that at payout and raise maybe starting ratio. are rate. you guide to Okay. you that a to I a that sort

Glenn Rufrano

Yes.

what Yes. that decision, to make do And balance flow a the XXX me the every what's and just decisions the have we do -- the us. start we that best dividend, much -- not the does of quarter, the the we let with is where is, based pressing how not the makes dividend stock. with cash cash long-term the that Board for But, says we the -- presentation there upon flow. Board after -- but in value sheet Okay. Well, and on board

look it's we commonplace. because to XX% of XX% forward, give ratio the As I

relative our at peer be gradually look subject may But that and than not you get of that. the at and I feel shareholder normalized to giving we the get less that we If can our Board to of better. We to to a be total group, XX% We're over there. If do capital it dividend then until XX% when improve this guarantee a shareholders. going we we to again, we number. value with that's get function company is. will is can to may the and time, approval, we the start, more choose you to more that about may keep so We start to increase where that the what IRR will -- it

Operator

Lee is of BMO. next The question from Frank

Frank Lee

how earlier ATM missed I your what the this to fund And usage the for if about think driver in we Glenn, remarks, tapping was this acquisitions? ATM going forward Sorry, should but quarter?

Glenn Rufrano

Well, when that of we a we raise. think pool about it's capital the ATM, frankly,

for we're relative we to quarter, primarily our the capital $XX quarter So million $XXX at the All allocated the was and the did just looking quarter. the investment. of purchased we of issue And capital the for in second we that for prefs. subsequent cost the used if the took instance, this to the we million prefs bond

pools component. we buying X%, the $XX $XXX and you means forward. equity We sold we us from our of which at component million just us we of to assets that's million choose in we are And assets actually, sheet $XX from some we capital So flow those do we The million have from. around the together, see, the had the it's that dividend. had for does when equity the to what at We you capital. million we balance numbers, than reduction. blended the balance the all we going so up cushion mix of the Those X.X%. buy them the million, cost used have relative is issued purchased. the actually flow We gives free firepower we was speak can capital just as $XXX to from $XX cash cash that as more and bonds of that, $XXX we as is if added much And assets, that a then it on reduction brought X it cost allocated ATM, million can have but of sheet more I'll

as great. the we have we forward, certainly. on Alternatives we We about, options our mentioned just free will alternatives. in cash if purchase we could the pipeline, wanted we expect the I have have choose, we options dispositions we And and level We'll debt have in call, actually them properties talked can And dispositions. that's alternatives without that from that our of But in quarter. always have Going to areas with and -- great. are the of ATMs level, we X debt and we have all clearly if those fourth some have could we flow increasing to.

Frank Lee

then if have in And Great. and you in there in the collections page QX? any reopening why is QSR the declined reason show collections where look Okay. October I at by states also particular state,

Glenn Rufrano

Yes, watching why has that Paul, this. who over been don't to I hand

Paul McDowell

we QSR, sure can restaurants, not like. I'm our and too Corral yet. the the just question, We and Golden characterize do good a That's Yes. within from buffet draw many conclusions that

too from from draw that. too conclusion reshut. So I restaurants to be impact those a some think as a may to early But much result, being some of there of forced it's

Michael Bartolotta

Frank, we expect the report.

We -- this last Yes, You'll If had goes quarter. it it. see look we have every we at in quarter. constantly quarters. it future

on, goes expect time that As may we we more. see

Operator

over closing concludes turn the Rufrano question-and-answer This back would to I session. like Glenn remarks. any our for conference to

Glenn Rufrano

Thanks, NAREIT. if at sure care, people you we'll be joining And talk and any Take thank us. If everybody, don't I'm to questions, talking many to has let anybody further we know. you. for us sooner,

Operator

today's you Thank attending conference for The concluded. presentation. has now

disconnect. You now may

VEREIT (VER) 5 Nov 202020 Q3 Earnings call transcript