Store Capital (STOR) 5 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Lisa Mueller	Investor Relations
Chris Volk	President and Chief Executive Officer
Mary Fedewa	Chief Operating Officer
Cathy Long	Chief Financial Officer
Sheila McGrath	Evercore
Frank Lee	BMO
Ki Bin Kim	SunTrust
Linda Tsai	Jefferies
Adam Gabalski	Morgan Stanley
Spenser Allaway	Green Street Advisors
John Massocca	Ladenburg Thalmann
Chris Lucas	CapitalOne Securities
Nate Crossett	Berenberg
Craig Mailman	KeyBanc

Call transcript

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Operator

Hello, and welcome to the STORE Capital's Q2 2020 Conference Webcast. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note today's event is being recorded. And now I would now like to turn the conference over to Lisa Mueller, Investor Relations. Ms. ahead. go please Mueller,

Lisa Mueller

investor comments and STORE we then all questions. and financial be Capital's issued remarks open Q&A maximize and morning, I operator, statements under the will today questions documents results. On the includes the portion while available your prepared limit will today's joining Web to at begin, we quarterly release the provide the two call call, earnings will federal Investor discuss for up will hour, second call. Before our which thank and you, would securities In for participation News our in call. ir.storecapital.com of call you during management us remind are This observing presentation, [Operator laws. Thank as quarter to we under supplemental we today's to section order to Results, include today's Instructions] information site like for These keeping forward-looking Relations of that Quarterly our Results. an XXXX you

us and goals, related differ their including or materially arising projections, to in forward-looking pandemic involve expressed the estimates, the risks assumptions, to our and those statement. could and that cause statements by actual COVID-XX are Forward-looking and and on nature uncertainties, impacts tenants, outcomes forecasts from subject its results from those

such results forward-looking Chris condition STORE's from financial ahead. please would that, Officer. results Executive factors and the is forward-looking materially XX-K operations filings, contemplated President our and of in discussion statements. turn and could A on these go may With from Volk, reports of Chief over to like SEC Form our by differ contained actual call now I to Our including our cause Chris, materially XX-Q. that vary those statements the

Chris Volk

Long, XXXX our Operating second Thank With STORE Cathy you, Officer. our Officer earnings Chief Mary Fedewa, Chief And good quarter afternoon, welcome are and Capital's and Lisa, today call. everyone. to Financial me

first, your things we to welcome and speak you today opportunity continue and to be families the healthy you that First to and hope safe.

with that those pandemic. by been Our estimate have and both June. ahead that experienced were closely are which since currently of of We in represents slightly we recently and states for locations the new team collections our business business, working in tenants been has business XX% We've reopenings closures. throughout up rounds encouraged open our trends June of is where the

certain open added such diversity renewed of but businesses mix the facing demonstrating some and important education, promising closer With suburban However, distancing. most mandates our nation's with markets. success our as social generally in sensitive trend more sectors will been altered our Mary exposure provide limited sectors, conducive let a has few that our for portfolio you here is quarter. has discuss me investment demands said, as to our achievements of to pandemic which has is and centers the the profile, detail

methodology. Score XX.X% investment STORE of Our healthy stability quality rate contracts portfolio rated occupancy percentage continued with the and and upon based of and net grade remains with an lease our

to investments STORE's cost, most low of lower unencumbered is of which quarter cash reduced On cost Those quarter. we the total know and XX% of make front, the were at of levels. irrespective leverage leverage to this historically providing a the sector balance unencumbered the ample sales. in asset public majority of Leverage beginning our XX% credit over with investments to just curtail rating. to our efforts to corporate funded flexibility in million elevated our during from navigate about REIT second new first but with acquisition financing equity began than us investments sheet of of financial our any results stood on options acquisition low unencumbered The assets pandemic. and our $XXX assets did recycled I

Now, do investment are activity. second some here to quarter statistics our relative each quarter as I

weighted Presently, and posture reflective rates of annual the with middle made to Our you average which of X.X%, was availability, in of general, the economy to. the robust for electing quarter of escalations initial we’re less about the a return, The escalation not principally X.X%, representing times. rise us capital leverage the lease in certain less quarters we lease investments. prior during across was Instead, the employing on these lease to by a more a lease over our dedicated adding XX.X%. are market providing during conservative rate meaningful we get the segment contractual that are average rates quarter new investments growth maintain

to need we costs XX%, in with corporate the our net approximately return of operating and incorporate investor levered area leverage after our of XX%. However, with XX% customer about returns

a enable The weighted approximately portfolio expected and operating of model, defensive which here investor X% that investment of like lease highly net return. rates outperformance to is with percentage next amongst master the less lease to constantly term These by to we're four extending The been weighted the you over XX important to terms time XXXX. average to we quarterly returns store new since investments and we continue contract are at our be XX spreads term public of long are away Moreover, investments new robust is existing our our attribute essential primary the years. which note than has five about yield, into public of lease aware lease cost we annual primary our this years, I'd from our maturing compute business years add costs as lease far terms remained as assets. contractual borrowings of historic average and the long-term our at that am lowest for lease variables that I arrangements. companies. major reason of disclose why is lease Our predecessor investment mostly driven investment companies our and escalations, take from have peer

of good lease definitely the term is a lack maturities environment, to near Given place be. our recessionary

leases. function master are location Another to long-term to of reduction In work individual net The on relationships this greater today. will leases. part match believe renewal like important has result XX% all eventual interest portfolio risk. and lease elevation certain wider especially in subject this more be our to further we an meaningful, a this have unless percentage lease alignment, importance that use The is be of XX% stands managing XX% XXXX moments the of that origination this. been to master has Alignments interest level which having lease Moody's are of of In in master leases. lease to function desirable contracts. Perhaps to fixed part BAX. overhead where extremely attribute make median ratio was X.X:X. new important Rating was emphasis resolutions. been due profile has investments a the charge of In new number our median prior form tenant move and quarter post Since we business unit deferrals been no RiskCalc for the tenant The repeat of from the coverage assets that fixed number part limiting the purchased during growing is added XXXX grown contracts is a to this a of of of multi leases

BAAX. STORE the rating more fixed investments median favorable Score you at If potent is level contract charge the for coverages, new incorporate or investment contract

replacement during net new quarter, quarter of all XX% Our lease made during approximately investment to average the were investments was costs the statements. and required of level unit at financial made the deliver

evaluate deliver substantially our to of us unit Here And especially leader at reporting. with quality, we which been our the seniority the that, properties assess contract financial estate sector continue required ability like this. to has ability critical real with ability pay to our to I over be all the This call essential and Mary. will is quickly to net which our lease times level rent, to to to is important turn clients

Mary Fedewa

morning, good specific like based to start I'd reopenings. and The effects business community and Chris, with you, COVID update. are fluid of a government support Thank COVID on everyone.

outcome today, duration the look we one knows economic no will like. the COVID and As speak recovery what and of

and handle a challenges start, we business COVID. to on quickly can we From have flexible new us pivot STORE, control. was of address and allowed at model However, be adaptable to what our designed the to good the that

a through has that organization maximize have businesses become of our the also navigate Currently, which require continue tenant two clear include collections, and closure presentation center and our profit sectors. this expect people will impacted our reporting, interest estate, being to rent From XX% to strong And unit new on us benefit direct and within building investor we our less that diversity, correlation we tenants you ongoing counties cases both diversity. states of base there's relationships It we returns. and focus only from new to geographic uncertainty, real our of XXX,XXX with some perspective, interest sector level between per a open is model, included even with and is than we As to geographic, and to an solutions of and period our fundamental with in contracts slides rent our strong tailor highly reflecting blocks locations strong designed illustrating and diversity this. rent tenants’ a open to contractual our slides added X% highly per impacted see corporate our in XX have of presentation XX% approximately in recent are day contractual base mandates.

movie movie received no in requests by Sections have impacted sectors, is some over clubs, to end exception requests by deferrals seen delayed the of of new our mandated releases. amount virtually continue constrained past impacted of highly education, restaurants, highly few back repeat the film remain of with earlier entertainment health And the XXXX. lease and on have and We and sectors And expect the concentrated up closures as these majority relief rent months. dollar in the we also deferrals which resulting be are the family declining. paid across And all theaters. such to paybacks be already theaters,

still quarter. programs continue numbers, XX% cash additional about most impacted April, aggregates respectively, will cash on We businesses the rent rent for more payments COVID, received month we to May and hopefully June, in during support in of and closely government which second recent provide by for need. XX%, XX%, customers Based which to XX% monitor our for the collections of our

which July, since cash XX% As in increases XX% began. this collection rent recently we COVID to number announced, aggregate had

We the restaurant, relationships and existing furniture tenants have team the at following sectors collections continue pipeline. And our of contractual most of base resolved. been tenants. interests also with collections our and rent high in increase was steady agreements due has of businesses to And time, a new and education The rent maintained same our today, and closures. as acquisition rent from reopened mandatory cultivate reached rent in deferral all XX% whose primarily to healthy

We able been have with capital need and acquisitions, yields organic our for for capital our customers also to they investments attractive also and shareholders. provide deploy growth at

During of real at the transactions XX second average across $X million. in estate quarter, under $XXX we invested an properties size million

Our acquisitions including focused customers COVID third accounted for quarter. of the acquisitions one about on manufacturing, and sectors, repeat resistant for total

At remained locations end, than Our X,XXX quarter vacant XX lease subject a healthy. and portfolio were not our agreement. of only properties to out more

those are three today, of of As contract. under properties

quarter, original Now second slower management of have properties the to of Year-to-date, turning from our sold as to recovery dispositions. COVID. these Most to resulted sales management just property in compared We recovered property under our of were XX%. sold ongoing sales. XX% activities property due we and over XX part in properties cost a reflecting

end was at portfolio remaining driven in sector, XX% experiential service the our the and Our service XX% businesses quarter in with manufacturing. and retail properties steady XX% of composition in

only and quarter, rent of top well second the at Our XX% portfolio customers end the interest. diversified. for XX accounted our base of remains And

COVID rent. Our strong tenants of a X.X% Fleet mandated the closures be of pandemic, dynamic Five the results top were represented just continues changes deemed and largest have the months customer, pandemic. during business on day. into Farm, our situation. every essential news base Furthermore, to many experienced

and our employees adding can So team that and shareholders. are collecting customers has of to summer. to over looking tenants in more accretive our help proud worked ahead, successfully to on very two-day acquisitions future the to STORE evaluation posted students we substantial colleges rents STORE countries. late looking and control, and the tenants, executives was is REIT event and our social financial first I including the factors workplace, opportunistic both operations, wealth included on past, we the selective to This gain COVID the making the where creation focused of value received July. touch pandemic. and on closely representing with will one this virtual and call college comprised participants diversity ongoing that important of and present stay externship very We're And this Cathy had educational women turn of diverse before wanted and five experience response, of multiple summer real This panels minorities transaction professional program impact finance. a to externship to our call engagement And navigate in now by well employees. topics, ever XXX In STORE his and participants, STORE's STORE I This and part XX turn thing. estate has our Cathy, variety the discussed now, program results. initiatives, and different and to discuss a I'll

Cathy Long

our on including sheet. markets by impact begin financial of I'll the then COVID and Mary. you, Thank activity our provide second the balance for update quarter, and I'll discussing capital an results

the comments due increase only quarters tenants from growth estate portfolio. year-over-year were our partially typically was revenues industries operating on earlier. year-over-year in ago X.X% impact as mentioned in in pandemic, especially the the Mary of underperforming impacted year increased million, revenues by to We our quarter to focus The that results. by offset the primarily properties, $XXX real Second highly

quarter help other impact was the concentrated be quarter AFFO you comparisons the since the call to in a to second provide understand bridge will of explain discussed COVID the XXXX, better today, I'll quarter the to today's All the sequential second from However, variance on changes. year-over-year. first of in

impacted deferred million these AFFO receivables, threats reserves sequential positive sequentially lower Second income were per together, by $X.XX, quarter-over-quarter rent revenues and overall Higher by reduced COVID other share. share. activity. decreased by contribution per quarter acquisition diluted decline Taking net diluted by a from on items expense impacted loss also taken in AFFO and $X.XX AFFO interest $X.XX in higher $X.X and resulting

payments tenants accrue events primarily collectability the the Although, did of in we provided in our deferrals, of we rent was income rental form relief the certain. the where rental not situations wasn't

the we recorded reduced COVID to rent the addition, the net factors related recorded rental during against deferrals these $X We quarter balance $XX revenue that deferred recognized sheet on receivables. quarter. million was for Both revenues reserve In of as of our receivables. million non-cash total lease

sheet expenses were uncertain our including included expense. related These $X.X non-performing costs businesses by million to quarter certain executive ago our due impacted by million primarily million, receivables Property funding a costs both lease for expense in $X.X deferred Interest decrease highly rent increased are the future. the tenants’ tax November expect quarter we balance these by COVID. increased properties, about debt XXXX the year-over-year, issued of to portfolio where maintaining year under lower on the higher million excess accruals quarter We last the during expense our ago to severance times. the slightly by $X property in offset as payments portion G&A from received incurred $XX to fund year master growth were program reflecting we second and from to liquidity interest our properties higher as

average As equity flat portfolio the year basis a last impact compensation XX points non-cash excluding ago. basis G&A was our percentage expenses, severance points assets, XX year's at versus of relatively and a expense, of

in diluted likely During XX% These XXXX we per of a properties property were these dividend recognized $X.XX costs nine quarter rents $XXX due a represented the July down million June loss the million on $X.XX second being per to $XXX which properties share, resolved. $X.XX $X.XX XXth a AFFO. were share, shareholders payout per dividends to We that on of basis, aggregate the record diluted year paid was quarter declared AFFO are ago, to seven of quarter, year restaurants provision largely and primarily sell for and approximately a of higher share On second This ago. per from of an from properties. related share to AFFO nine million COVID. to of impairment the XXth. was decreased on ratio $X.X process

rent include each $XX with revenue negotiated of of quarter includes I AFFO generally to earlier. quarter in deferrals and was were the tenants XXXX. subject mentioned net beginning These Second deferrals the fourth that schedules million repayment as COVID

these by the vast of the XXXX. expect deferrals of We majority be end repaid will

these dividend XXX%. ratio, been Excluding share per would for second of excluding AFFO deferrals have a diluted quarter $X.XX deferrals approximately payout

with share, balance approximately average billion with a an the under the weighted activity Now and our and We $XXX from our We third and and $XX.XX per in liquidity maturity raising $X.X sheet XXX strong of with shares common of quarter with XXth, index had entered of S&P with acquisition turning half rate ATM stock sales. average cash. million. equity in our a debt we acquisitions X.X MidCap ATM our million sheet. million X.X%. to our program, At from weighted quarter to approximately approximately connection funded a program along In balance proceeds proceeds asset of long-term price a with at interest of we of issued second May, equity proceeds June net $XXX addition years position average six cash

we down better which of the AFFO. will collect into interest expect the excess levels gain pay to reopening increase rent, higher and and expense visibility As reduce of liquidity, continue this we to economy

substantial debt access to ratio variety options. cost financing on a debt low attractive for affirmed told we're no to until we're on debt year master our report the ratings portfolio basis and a and beyond XXXX, maturities debt. We a XX% of S&P well funding with significant leverage and equity including financing XXXX have of remainder and of to pleased conservative our recently and the that net positioned historically All flexibility,

back and in And remain with I'll continue compliance foreseeable to now call to for them Chris. the debt future. remain in turn our the We to compliance covenants expect with

Chris Volk

Thanks Cathy. much, so

over your turning call usual and As to make like the the operator before to questions, is few I'd a for comments.

of first as to We we sensitivity open our tenants can the consequential know March for This months quarterly recollection illustrate that tied the is to we correlation investor in conduct now to did we quarter know did shutdown, then. business more the Above rate much portfolio we and tenants regular all, COVID-XX section presentation, of having included a since be than trends that initial addresses First, the ability business. our to is With our general five passed for our presentations. we've commerce investor causal. absolutely pandemic. our

of realized from the collections insensitive COVID called Another higher businesses. in our level that causal we've correlation centered rent so is essential tenants

manufacturing to high our COVID centered essential to real elected correlation have can point pay instance, not no we tend trying to more who lease to believe and rating inability issue. causal. And balance basic net note this not corporate have company many relevant too reasons, sensitive tenants and to known a the sectors prove from companies be rent there an and highest That's grade For strong REIT non-COVID grade out other insulate the which times. be to here rates. conduct rents analysts investment collection are of tenants most many commerce. estate for it are have far insensitive, a noted essential investment be to in REIT sheet point, the their and landlords credit businesses, that investments and lease observers industry net generally correlation during I'll the these but believe sector so investment to collections We grade because well lease

tenant like varying I'd of our rent compared ourselves section prevail corporate lease levels tend of make the second business the In COVID to presentation, firmly to having investment we that levels is coalescing believe of exposure. peers the that to long-term. net we The point over models grade sound

rents the in these that virtually their rent to terms grade Given at rankings not the have all paid top companies, of of overall collections. tenants we're investment

So certainly in we are the middle.

which went performance are estimate the at July step driven to levels. yield But as rent However, further, one with by the collection of our to then investment collection it was close tenant COVID comparative our reduced cash openings, we collection was XX% we leaders. elevated getting

sector a be You us should as to see emerge leader. not surprised

rent those fact, grade of approximately we investment investment of XX% can XXX yields even. over to XX% would which giving rent be realized safety. generally our the permanent like fact That further sale. tenant In pursuit a provides by our almost break we average a lose tenants in be also This higher basis of before overlooks escalations companies with afford of will points tenants, in that frequent, to margin off and tend half more

like Of non-rated STORE is investment our leading course, result rated even payment the tenants not portfolio of our the priority a companies, and sector that create are grade and But succeed. diversity, need contract companies Score. they to as can we essence of STORE with

me results XXXX to eventually the our you quarterly corporate of third and remainder other us. business or open some to will we improvements as When gets make see today has Which our will the to encourages ability see have be What regular there. XXXX, variables. us we our businesses, going metric point. into disclosure. During been incorporate this tenants important their reflected in The maintain

better been business than has it was that pre-COVID. Sometimes

not is to that than expect to in will do, of tenants vast XXXX was have mind, rent. that it than and the the do you we what more our enough do to Keep instances, return Sometimes to But pay which is pre-COVID. business performance it less is tenants our majority in levels.

of pandemic, at Meanwhile, performance the periodic provide this with you refraining we of that is performance updates. would issuing area X:X of time Going that we Fourth, to this guidance. given better, the material by or in to from call, uncertainty have which STORE this done safety. which hoping will had continue a most level I'm margin we XXXX. uncertainty, since locations our into point coverages are us the of unit faced still our which for third do guidance certainty personally of customarily gives inception pandemic, exists what issue such enough quarter

from to earnings three us conclude by from June, about dividend. talking you to third a hear Board and like recommendation our expect for quarter So, about the would our can In collections my months our our between I with dividend. our monthly activity management $X.XX call. portfolio maintained remarks rent now

rises covered to operations, received While about deferral for were of the quarter arrangements the adjusted that our tenants when to that in the quarter subject payout our consider second by is $X.XX recognized cash in our $XX but fact to rents ratio with dividend amply you in response funds XXX% this from not million are pandemic.

we elevated course, closed. seen months. in our April much we so initial March Of over know and and much collections when than the the seen was meaningfully more we've today reported escalate two of economy rent We've did our recollections steadily and past

collections, call with sustained strength now, like growing and rent commerce, given Board and maintain tenant turn questions. for to and us dividend. property confidence I Our to our any operator have together the our the the to over would openings And

Operator

Yes, thank you.

will [Operator Evercore. And question from the first the session. We McGrath comes with instructions] question-and-answer now begin Sheila

Sheila McGrath

capital in was elevated I these expect wondering the to the X.X% Should appear on or the sevens? in the markets. to if could yield in Chris, continue elevated you risk we touch high to the in investment it on did factor back near-term, investment yields quarter, revert

Chris Volk

really First from perspective, of not that did volume. a all, much we volume

normally third it’s time done. of disruption. have of we a exceptional So market did volume a it And about the in we would

So comes have capital a disruptions, the with market you less whenever exceptional market robust.

them on opportunities tenants that in some and very our And get attractive seize we're are participate able as good so And to on well. transactions. and opportunities likewise, to able get

interesting COVID chasing there's out has point for XX the really estate point, in there XX grade money of in seen been for this marketplace, us a deals on basis sidelines market. lot What's a insensitive real every and that. is really investment by demand for been encouraged high, really for especially looking yield, basis the we've because we’re that So,

of people So reach kinds deals. after those can really

So seize actually that grade COVID middle able buys of tenants investment seeing and make and quarter. in some this a we're our widening our stuff market and attractive spreads shareholders on stuff, for and between for then kind to the you're the insensitive

Mary Fedewa

that customers done were side, that most They with of in just COVID. their deals these deals already our in I’ll are existing were pipeline. get needed these add to that and of underwritten on also light

So, they that were they’re COVID carefully resistant that and perspective. underwritten industries from in are

Sheila McGrath

on Did up. for term one And give negotiations extension or just deferrals? follow insight the there. some you in short return Just us anything lease get

Mary Fedewa

rents, interest Most to form percentage of lease In mods, bearing a we of some rent we lease extensions, majority the of might notes. were And of months if our extension grab do the our a deferrals and that notes any cases, we few negotiate. have able in notes would escalations. were some the lease was did but multiple some we

Operator

Thank question with comes Frank BMO. Lee next you. And the from

Frank Lee

acquisitions. want should those with funding are acquisitions How we to additional comfortable matched about future on sort touch for of ATM dispositions? Just think funding and still you with and

Chris Volk

and for has on market because fund we ATM The gradually as the us, just been ideal draw ATM we've needed.

million the could we're we I think you acquisitions. houses see I going second $XXX XXX to quarter, be -- deliberate. mean did very, very in

you the near pace that our very report, see we've level. a anywhere that presentation quarterly to. high maintained from can used not the pipeline So our at we're But also investor

we do opportunities can it and would market way can there. then to some and a the through are We're seize will we're this lot there a do that positioned likelihood, that if So lot transactions on be our there out ideal. we way, see all it In we more waiting in meantime, business pandemic. the in can be but accretive to of ATM do

Frank Lee

July? the And of on to in then you deferred paying have in paid rents start their deferrals time back Thanks. a sense what tenants percentage for that required July. Do were

Cathy Long

QX. really deferrals to scheduled the in of begin lot A are

the they they -- some paid people were So paid that's The was when ones her that of we scheduled? just who back that see were there them. early majority would and were Mary script mentioned in back that before

Operator

question Ki Bin from you. SunTrust. comes next Thank with Kim And

Ki Bin Kim

which impact collection reduced clarify any XQ bankruptcies and by denominator Can The closures a in you Was like XX% a no couple in store things? XX% there from just denominator? number July. or rent changing the

Chris Volk

impact no So to at all, just like. like it's

Ki Bin Kim

on about any you the like collection rent But not sure curious that numbers stats? sold. for assets of a how look I'm sales? if impact And asset that what had the

Chris Volk

there's There’s Ki asset wouldn't anyway. period. impact some the had sales, vacant. add, change they Bin, matter the the And so acquisitions, we just in else, from denominator no and It revenues, way, anything then just by few assets assets so to asset were the sold we -- no no sold of

Ki Bin Kim

you to reserve deemed account XQ basis cash much rent or to would can clarify there in And that… for how you and move was just uncollectible that accounting

Cathy Long

I little more provided you I and can on walk So a give detail a that.

acquisitions weighted sort QX, back acquisition end So the the in we activity, was of which QX which net during sale. June were asset quarter, to from plus did the

that positive income, that things per that So or that random share. which one it, penny quarter-over-quarter was was around. but AFFO net a you fees something like activity jumped received down like to one modification that, in lease has Other

So was that variable, down. was other often a penny income

a that So, a change the revenue rents now also down, was COVID $X.XX so loss. in and the And a was penny you're of down. loss of the that's And but reserve. penny up then most rest included related,

we report that virtually put the mentioned did reserve temporarily deferred million. not for So, arrangements have I those did for the But basis. on were rest a on these and I where deferral cash that did on a receivables or revenue, we $X so we didn't balance them sheet had we collect put about

mentioned that had unresolved. For Mary example, X% about there's

So on about put makes that I people half sense? of temporarily. Does basis those cash

Ki Bin Kim

perspective. little It bit maybe different can you does. provide But a

they be a total basis number if against in reserves will include zero be took was that So, being which that accruals. What look percent collected, and rent, the as cash obviously you might build… of total like any I

Cathy Long

$X.XX per loss of AFFO rent share. The is

anything reserve, So that hit that that includes includes that everything, rent, lost includes P&L.

Chris Volk

was we the gave Ki, we walked not AFFO, our on only the you our thing of AFFO And backed actually out but we deferrals. that cash we you so you through that comments one for did amount AFFO

So quarter quarter to actually were cash XXX% and have you will using numbers numbers. be you sort you you that tomorrow if take payout from out go have perspective to What But the deferrals. our quarter backing statement with of AFFO cash dividend number ratio track and the flows, was you do to Q. during number is filed a first Q, a the if the which to got understood our were our of the you second

You on come in the of we that close kinds coverages will statement of to flows find were to about. the cash by talking generated operations pretty cash

that. In statements thing like that's better will speak fact, focusing important a And why little you're maybe in the is I are where I And the themselves. the think time understand an bit this. coverages I than a on think for and cash

Operator

Thank Linda And from the comes Tsai next Jefferies. you. with question

Linda Tsai

rent right that X% of terms aren’t to aren't it with expectation of for assume In opening. tenants open paying now? Is your the your fair they

Chris Volk

that and in problems because we earlier. connection please. clipping you're were Can you having again, Linda, try with out,

Linda Tsai

currently tenants was I rent? assume of aren't and open aren't just they'll they expectation when asking about paying the that open, any currently

Chris Volk

culprit stuff, And theaters is The the thing. family biggest though. This entertainment I and be are going is to to and give movie just interesting some an theaters sort of closed. the just want you anecdote

filed some they the because was So close. yesterday, to a to Fitness. in favor indefinitely. rule. this that EOS and against basically, because out said judge mandated force they've clubs. suit their government came mean, Mountainside Fitness, have was to businesses one government, they have can't there One close And in And state, I the been fitness the two were

so And is on state of health XXth. health I or result, basically were safety guidelines, and Under a Safety, DHS, EOS, security both as reopening assume August Department guidelines. which Mountainside Health

all which So do. were willing they to

barriers make a and so on plexiglass working and been distanced So sure clubs have and out between of lot forth. are fitness so their safely people that have parts machines to they

if across of down collections, other that you so and at were rent the went mandates in numbers like like impact looking if have so our fitness this, July, clubs And sectors on numbers for to the going up. whereas for example, because something an is country went

state. And a we've happening so the like better But state, bad is very of for and we're that. a the seen was life live, Mountainside, like case fluctuation the being we see this outside a EOS become where also by yesterday. some other has encouraged that poster what thing is state which we Arizona, child in But

into on a the when testing guidelines. community come think a and because way had can closed, been holiday, X,XXX not positive down through you coordinance constructive. like people massively. but We July I very it’s you state in mask steps better. XXth the do shows start went every you was before the lot, the it have that And just June to and what states can't we’ve be day Xth and bars has for some XXth still So should yesterday, that closed bars they Today of taking follow it’s and drink cases social been XX%. virtually rules can't and a stuff. And the miserable and dropped great mass as were we a and a now And of XX.X% distance

Linda Tsai

COVID in resistant Just in for invested one of industries terms more, you the XQ.

Can back other And similar of you highlighted industries half? acquired? examples cap of manufacturing. you some composition can industries us and the expect we in a give You rates

Mary Fedewa

this case. composition in I a So stuff, we're probably -- on we the little that's COVID resistance industries or heavy but think of terms acquisitions, past bit more would similar manufacturing say more I did, quarter, being

In these are terms of these able cap our opportunities would -- rates hold go way to. and to rates to expect We back wouldn't see COVID. after cap Chris mentioned, be those to we to are again,

Chris Volk

rates these cap going or all. rates to the cap two. see I mean more the at reverting post-COVID last can't amount I for or mass business been of you're a what year But to you they is kinds of do think have with where less

is cap news So treasury you'll be that basis expected. see the reverting good the XX at should is senior The points. that rates

note on So we're able transaction. a mid year XX price to to Xs at low today borrow

XXX points which historically XXX incredibly spread, basis So is you're talking basis points attractive. to

Operator

from you. Stanley. question Morgan Gabalski Thank the next And comes Adam with

Adam Gabalski

level bit seeing, little can competition buyer market deals market? a talk know for middle talk kind more know I just for competition of just in said capital the you less But the you about the availability. about across a existing assets? bidding you Can the you're of level bit you'd of segment, little there's

Chris Volk

the understand the public of high that at most that names aren't level, you all a mean, I people who follow. are buying assets

really that buying acquired. that that the gets XX% of are those away done assets assets getting assets that buying are there So Those get market. typically public the debt need from out business done to people it’s

markets be debt helpful to to the make happen. have So that

the seen quarter you've from an last a been companies, in acquisition for most part the perspective. what So lot were has retrenched public

the the likewise been people cover on cautious have there's been to available. you on institutional And than So more less you think hanging been that names you do from the don't and side it's been sidelines. has side do but I there's cover, liquidity sitting cover. readily And the that definitely then from bigger and

So our of have there disruption, transactions be that to have opportunities happen. simply of that time economic are when And and happens in can to And opportunities to whilst a lot take to us be able transactions basically advantage interesting happen. you where then a alongside find tenants there them. of some those

Adam Gabalski

happened COVID more. shakeout just for your Can then sort occupancy half relative little back occupancy in to you year high overall think expectations level bit what And talk post one a GSE? the how more about just the could broadly in you of and the of

Chris Volk

month's month's month. slide pay takes people the for starts of at they us Page at pages. prior our to a and the goes to which current it openings very the that first where charts corporate presentation, because very, function a COVID section So on encourage rent if be open previous -- all XX to few you But you I the would tends rent, on look were look especially,

quarter quarter in so second was So the and forth, everybody collections, June was people low sort because closed on of April. would things so opened made so as hence And that and up May the for in -- in for and the better got month lag.

for to been can't been September, August I that’s or promise so that far, that's date relationship. but now a predicted So predictive will be

-- think we're had flat you've August. open XX% sort XX% I were, of July, basically we in So, a in

numbers end So as will go And that stuff by year. horizon certainly theaters and on will up and expect open movie there open. will anyway these other vaccine the the be I a of

come you're for QX everybody. mean of you high should at this coverages. that one they going if I to numbers ratios the that portfolio, don't incredibly but same QX And doesn’t won't numbers. look And And ability coverages. that to and They huge stuff But collect of the coverages the just are rent, down, cases to you point, have XXX it's lower numbers doing able comments, rent, our at August FFCA, I can't it expect there's open STORE lower until less there could things people so materially remember terms pay down, this of It don't between know moves I as in way. to they the anyone they this and in is conduct good something. at QX to people And mostly at are and will really have business has first STORE those they I was numbers. people's correlation things if reflect to because that coverage do important. a the XXth. I afford said in very rent, in pay numbers looking asked ability pay public mean, rents, of this and coverage like -- reflect, come the means this but those to but business. margin those very be were not numbers was our have some two. for what sort XXXX that be business forward, doing happens our QX is be us due they still and charge the of fixed the out Scores question in mean when is our mean, mean, in company, is if important average always news I the coverage to just

for mean, occupancy the for has one rent it’s open people state just multiunit you’re sectors education, And so state education. having these throughout child sometimes viability of about been from So operators. the payments the strongly of And of in hard I of I to the early spacing rest year. case limitations, ability a the the by rules, very hardest up. feel fairly improve I from perspective folks and good a sectors. we their of coverage about the where are feel on to

And -- so, be need a is yes, but and will it fundamental education there.

in very and the are we so, portfolio. our And in confident tenants

confident the uptrending Board of that’s that And see year. rest through So, dividend, our rest the to of seeing. our this I the we given personally pay to but what through was in ability maintain we’re the confident year, the why are

Adam Gabalski

then, over with July. in one seen just it. few those Is they that have color last And Got landlords partial you other conversations one more heard sort months? have that your sort some on trending how just to been We’ve the guys of of paying on rent AMC. what started similar from And quick exposure?

Mary Fedewa

Yes. Mary. This is

we’re tenants. is on individual deferrals a deal with that made will disclosing any But, what So, I we comments AMC. say we’ve that have not do with

Operator

you. Thank Advisors. question Street Allaway with And Green Spenser the from next comes

Spenser Allaway

in now? the Realizing just Thank right the have elevated guys of about the you provide how withdrawn, rates you’re some in you. you guidance color half cap can strategic but just given back thinking year, on particularly, the you’re growth external market seeing dispositions

Chris Volk

Well, it’s interesting.

ability some cap seeing elevated do basis. to we’re a So, on rates direct

a question of sort overall And not of estate in a to NAV seems I decline say And would result there’s that. real so, be as suggesting no. or whether your

that I brokers do marketplace a It’s a we’re the of still for direct. the going the to not is than using middle stuff so, mid-X again, we’re most lot numbers market of where part we better we and of X got But the kind not sometimes high-Xs that that. to were think number. --

else advantage have are it numbers much salespeople. of it advantage more we credit net the comes in people salespeople. us to broader I there. And have that is I not lease anybody the So, the think got access more But mean, which having pretty But, cost space. actual deal with a more flow, salespeople, more of we having in to than at allows COVID, in we if we here at million were acquisition doing a I in going all fact, you’re we’ve most we $XXX chance prior no be likely past. where million. if high-sevens, kind month, what you’re of be that did the been mean, going to there’d to with elevate $XXX could our just we just to to where pace mirror a were repeat

Cathy Long

their July or about, we not to not have XX Spenser, you’re has seen Chris asking extended. as down the broad But and been extended marketplace, from XXXX mentioned in certainly been -- was a… the the and deferral, and velocity XXth repricing And dispositions lifted use that’s to a

Chris Volk

on And I that to I nervous away, going would stuff. about some rush XXXX of think also, people going the get say, doors there’s likely to if be a

and So, the it advantage hurt have subsidized sector mean of contraction people of term, Long-term, is always getting our goes are rates on as grade especially hand, in are near investment overall. who -- see you’ll elevate of away, if and in the the a product. ability can opportunistically much to the as cap a the take it’ll U.S. sort to which other people retail you’re nice thing. is cap trying in that don’t XXXX more of should the which going I rates exchanges be to But, government, by government, sort to you even U.S. maybe -- some XXXX have by do. people they subsidized sell

no and So, to sectors likely there’s through are cap basically, away stuff tax If more of widely and going rates XXXX. you’re elevate sort spread anymore, potentially then cap people going goes that incentive rates market individual see all buying across push up to that’ll out.

a positive And actually so, that be net us. would for

Spenser Allaway

you. Thank

Operator

Massocca question with next the Ladenburg comes Thalmann. And Thank you. John from

John Massocca

Good morning.

off, tenants, education in of had of the focusing little there collections? issues. and the I’d segment. any First Kind maybe in starting? plans concerns mean, expecting open get to on your conversations there education Are some they kind if with have also of impact apologies, your kind on those reception as school how particularly candidate that Are gone? I choppy here, I years tax now about restrictions non-early a

Mary Fedewa

Hey John, it’s Mary.

are bit sort and childhood they’re some early have combo, they they to need of outside if own capabilities and tuition they private little education, online and they’ll we to. but they go do that in a online person schools -- the are schools of paying the a superior and have So, actually primarily geared parents suggesting online and they’re certainly can

that for way turn a we’re So, seeing fall. positive the

John Massocca

in maybe enrollments And far? positive terms of kind trend so clearly of

Mary Fedewa

Yes.

John Massocca

currently in kind of portfolio some Is then, basis of of terms restructuring? is recognition significant bankruptcy of kind that kind rent, kind cash outside anything some or that portion is just restructuring on of the portion bankruptcy of in of think there of that recognizing process? that’s or how the either you cash -- much that And a of that’s’ in in kind I are how percentage guys as about of

Cathy Long

bankruptcies There a that always few we have. are

mentioned starting deal we Art you’ll resolved last Van QX. was of that That quarter in in was recall, bankruptcy. As effective

and went from do in QX. we call or you’re bucket for you’re And about, impact presentation, the like be full little in and process example, talking of a there’s having investor that every Art waiting look this of if is the hit year always they -- not rent the are Van, a things maybe who that. there’s we But what lease bankrupt, So, a work-in-process. people growth, having our and generally, to of revenue affirmed you the workout, walk for

And So, there’s year been about always points XX you be time small every amount. over basis have over think, to going that. time, I that it’s

things continue. additional resolved like a we don’t to on thing, But, that for people expect with just put because trend basis cash did that, they it’s COVID, temporarily if or So, we not example, but consistent generally. were

Chris Volk

of country, it bankruptcy and done tenants but of and across they’ve of closures, where times over not an as the bankruptcies. thing to you mean, this, COVID normally, pushed But working have take And of a been and we’ve lot bankruptcy. has since all all seen saw outside landlords, sure out their creditors since think edge. people were were And and as were STORE, done with I constructively. businesses, things started businesses these interesting hit in business any would the and kind bankruptcy, say that what’s started, doing with outside I their their -- been I’m COVID and these of we there bankers handful their but just with a about of bankruptcies not kind that very

that. so, door point. to really don’t this see to at for we rush bankruptcy towards anybody file by And And wanting the encouraged we’re

We is make So, STORE and sort now, if don’t survive into more a long. diversity STORE built mean, huge to built -- are just this factor all from got just the our if diversification I to of in in risk standpoint like the mean, you a than space, buys handle else after COVID that. turns day to reduction by recessions forth. two. handle is don’t this anybody there so that and it, companies I of

we can So, handle that.

businesses, have irrespective of have if We the And companies pay way. XX% business really obviously, or they companies rent, can’t fortunately close, when time AAA single growing. door. us, we’re is BBB occupancy coming to and Nobody’s a whether today harder can’t that at because structured they’re revenues in required every for

that And be expect can so, there’s And I to us rent. open the pay between whether they correlation businesses grow. a and can

Operator

the Thank from Chris Lucas you. Securities. question comes next with CapitalOne And

Chris Lucas

you. quick questions the What for of detailed couple amount just a of Hey. billings rent dollar contractual was Good morning, for Cathy, everybody. cash XQ?

Cathy Long

that Say again?

Chris Lucas

for What amount of was billings dollar rent contractual cash the XQ?

Cathy Long

you the about run-rate the $XXX at was If look at March, we it had that of million. end

$XXX million. So, a be about quarter that of would

interest could that would base the So, the you for be quarter. rent get and for maximum

Chris Lucas

Okay. And then from the…

Cathy Long

sense? Does that make

Chris Lucas

those doesn’t. I whatever, It tracking rent there does. collection well, it numbers is becomes, expense meaningful I the reimbursements or some mean, I or to as release pass-throughs it as guess, mean, is question delta? the

Cathy Long

I understand question. your sure not I’m

Chris Lucas

some pay Well, have pay, some so expenses to they of you of which but they pay… kind of pay also directly, which rent you

Cathy Long

net triple The expenses… Yes.

Chris Lucas

I ahead. am sorry. Got

Cathy Long

paying triple tenants For aren’t the expenses, net the we’re not that finding those.

who their deferrals rent people expenses. paying asked for So, still were

some cam property finding they deferrals. that were asked did reach But, insurance, had kind charges, they weren’t they out rent We paying if of and not So, that electric, thing. those. taxes, for

Chris Lucas

then, to let’s -- go over And ahead. Sure. switch

Chris Volk

us time, save expect property that not did was to abundance say, specific, just which take I’d of for would some we to so a in reserve caution. do taxes you

some the reflected attached costs were of not and reserve. just So, property

Chris Lucas

at what for the Okay. And you’re to have July we deferring a what there for is schedule Cathy, then, to going all million, be? as amount deferrals, on second that a and that is Do point? this sense for quarter, is $XX the

Cathy Long

reserves. Yes. of million is $X the $XX million The net

million with $X And So, that deferrals just reserve. of QX. it’s $XX a really million is

Chris Lucas

Okay.

Chris Volk

to we’re go some not we QX of don’t have QX -- obviously with And tenants arrangements we go in on so. lot of have -- And and but to Chris, a beyond have through no, some a actually But, some. we time some our uncertainty. we that

talk it’s mean, don’t change. need it. we to So, really about I to liable

and In QX We back. people that fact, them it deferrals in had paid changed had right alone.

Chris Lucas

I Thank Okay. it. appreciate all had. That’s you. I

Chris Volk

Thank you.

Operator

Berenberg. Thank the next you. Nate question from with And comes Crossett

Nate Crossett

guys. remains maybe was of wondering I withdrawn, morning, kind I acquisitions guidance the Good of back Hey. half if us know, in give you but the for your could year. appetite

I mentioned you did that transaction XQ think, done. where get a you tenants the in were needed the deals to

So, I’m looking time-sensitive of is to kind is quickly? pipeline the tenant much of just how curious, the where close

Chris Volk

lot. a not end but we in meaningful front on the haven’t the ways. some It’s turned And,

of and powder a still we’re cautious. And waiting. And being keeping so, lot dry, very we’re we’re

overcome news from hard things to cycles. change COVID mean and the -- I So, And, it’s day-to-day.

no drive what on news to down, whatever any whether we our So, do. is up going it’s COVID stock day, goes matter cycle or

end so think, in we’re as that do I I we given guidance, have could as you. would and And -- so, said we’re the we to but we earlier, QX, into -- as cross into when of to we get for get we do fingers, business. that’s going our normally, And comments ready my

Cathy Long

to the -- million. the year, continue that’s have through $XXX we construction ongoing And of commitments construction rest fund will obviously probably that

Nate Crossett

of would to mean, certain kind that start guys, we on based for is just kind kind it ready of a I Okay. be you’re of you of rent is again, looking know going we you’re of where or collections multiple kind there up from level ramping shouldn’t factors? that

Chris Volk

not about just all multiple rent we’re going It’s think, based I upon collections. factors.

Nate Crossett

Okay.

on color was that? the can any do stuff included in you in quickly give around industrial QX, it Was us or… Just what just you didn’t

Chris Volk

across it there than in board. million, so XX% manufacturing QX, a $XXX slash industrial is corporately XX% there’s but and the more With -- at -- more so was the we’re little

and So, we candidly, whatnot, were sensitive. deposits able did something coverages. on service, and like manufacturing if decent all existing rates, a this. like amount environment And no an assets, mostly to also things, retail, get fair is nice of and these we some get can of in you COVID in And service rent credit customers QX, and which cap

every And way. but to were so, for there transaction wasn’t than them it enough put it was -- to usual, that more

Operator

with from And next Ardie KeyBanc. question the you. Thank comes Kamran

Craig Mailman

of forward? helpful kind items? Ardie. walk if here to out because a Mailman you of related just guys what of related of it kind then, XQ bit net portion And $X.XX? write-off was Craig GAAP just versus of to just in actually maybe was of you a to give the the the to $X.XX recut are kind how was rents just Cathy, that the line is going straight other write-offs much how also, leases XQ a And you for from non-COVID some This could much with AFFO. from gone actually a I’m to little breakout give But, perspective, in us curious

Cathy Long

it. in reserve the had $X.XX The

probably say I’m XX% that’s COVID-related, we rest So, temporary of it have little related And reductions. of edge was might And And underperforming because it of I it of slightly COVID of -- that, kind to that, types $X.XX temporary people. been probably guessing over that of we’re the have $X.XX. COVID. most was the was pushed of reductions was gave of perhaps other would the And, the then, just a was rest most that might it who -- before people, the hit.

reductions. But, temporary it things restaurants were like small and So, that. the of most

Chris Volk

most of deferrals, number, recaptured. chunks basically, QX is revenue these -- Right? So, which the is of the in number you get you’ll point see it’ll that have everything. So that

is then, rent, non-recognized to So, recaptured deferrals have just stuff was over when the you’ll that most some but were substantial non-recognized that that it. rent, the being everything. going And majority time, of

Craig Mailman

-- abated, give and is that for guys rents of or $X.XXX almost how that $X.XX So, just why you kind XX% confusion of color these just it of -- deferral? wasn’t? these was And here. us -- But, than rather much million -- AFFO when a or kind because were it you just a I revenues from of the apologize was Can of excluded $XX kind excluded? $XX weren’t deferred temporary or million included, of

Cathy Long

Okay. and specific a note deferrals interest-bearing with were Well, a the where the we payback revenue and booked the schedule. for difference took receivable receivable

had something rent were the temporary we during So, say group. There end, it you would or some they’re that were QX like where front supposed that but lease that. modifications be pay to reduced in back, --

release maybe within couldn’t put that. itself. So, to a did or comes just something on of But, been you. mod And sheet technically their period tenants a note might versus have time, that individual that’s that short back payable it like a they through balance note rental

reductions those were paybacks. But, you’re the hit have back different. were deferrals where different that to taking So, that the something -- are P&L

the For have we you rent, on we of normal. of cannot then rents might lease the your said, pay of but okay, want rest example, top June XX% percent for the

it a but set that that make up collecting way a receivable. you’re Does sense? as So, was in not back

Craig Mailman

Yes.

in that versus from on of the modification, the technically percent So, receivable books, a getting viable the so life it classification could is where of loan of accounting with classified over someone rent, take kind guys lease? as that and a remaining is their back you just hope

Cathy Long

basing of they could environment. what going of thought be post-COVID what kind their was Right. historical this and percentage achieve Generally, sales you’re kind to in on volume they the rents

by these of deferral tenant, tenant the tenant negotiated on each done from individually quarter So, tenant arrangements financial based these by were we every that receive tenants. statements

that. achievable. you So, the came be needed And to could that on that with if thought or payback like on an percentage something what were and what the to or -- the agreement schedules they idea something the wanted to go based needed deferred, to arrangements -- to or then rents we tenant we be be

you their So, how again, were looked what could would and and at the reopen post-COVID sales quickly they tenant be.

tailored. very, So, very

Craig Mailman

accounting related any cash there to going to non-cash Difficulty] write-off on these some [Technical Was extent? Okay.

Cathy Long

small a always are but -- is people non-accrual there Well, some be. there there will handful on accounting, of

Chris Volk

taken included in bulk think rent the to and AFFO. which AFFO of in perspective rent from mean, have deferrals I the in I deferrals, number be form of was the

reported designed this we about sort number, of because it lot think a cash unusual when non-cash which being but AFFO, So, really as number. it’s we’re of sort tentatively time reporting with is to be slot, a AFFO people of not cash

I cash of as an like base. rate As number, sort it exactly long-term a run analyst, necessarily cash of but think, being not like

we So, to you flows. were you the excluding of what a cash for you pretty play case, we close. the payout save precisely in then tie your it -- out also and But now, not never going to gave out did, it’s backed that cash out and deferrals, if ratio, flow, so if statement this we you’re

Cathy Long

Yes. flows see is to of this. that’s look The perfect cash the coming of place statement you’ll rent be going to activities, by show out and to non-cash because you able cash provided the operating

Craig Mailman

Okay.

about the that your about quarters here Is till overpaying think we dividend could you it? cash a sort be in if dividend, So, FAD ‘XX. several really of to to paybacks think real or accelerate the support way for the fair

Chris Volk

all. No, not

think we I we is QX. cover -- dividend. where just can right actually can’t. where the XX% in were XX% where I mean, It’s at we’re today you we were

we at were July, XX%. For

out pay perspective. beyond able dividend to a we’re XX%, the being cash So, from

I we perspective, short, a to think dividends. the going cover QX from we’re be So, and

to able to for whole on cover the cover and QX and to we then and be room We that. expect so top it have year, expect QX, of

Craig Mailman

Okay, great. you. Thank

Operator

is the Thank question final a you. And with Bin from Ki follow-up Kim SunTrust.

Ki Bin Kim

pretty So, is the line spotty.

you but I So, run or very $X.XX reserve briefly rate, your I total fair impact the $X mentioned -- temporary right? $X is And assume that was million and tried about have from to just million $XX want XQ through this rent when That’s the foreclosures the I deferral go Can walk, bucket. also follow is to abatement? all Is is a walk million $X maybe lost million. from XQ. to But, to reserved, back or you that. to

Cathy Long

Yes.

yes. so, -- that be So, would

Ki Bin Kim

Okay.

your about every details that that? I other and is you companies X% reserve that that just thinking? seems X% can XQ I’ve share Any property different, -- I am it run went beyond just and portfolio into reported to know comparing that I rate. company million But, is What $X different. So, is every that of compare revenue light.

Cathy Long

question I’m is. not sure what your

$X the actually it’s that, last you’ve COVID, or Art million. quarter. having and our for Van to not rent to for a rent the the for $X.XX a So, is loss Of example, rent got -- closer due be $XX million reserve rest would

Chris Volk

lot number. that thing million And, come million The deferrals. cash only $XX reserved of with is up that against on worth come back, to a been Ki, number a $X doing basis So So, best did basically, a got has you’re rent we for you that. right? of our

that’s right number. the I think

of of But, all I disclosure. we’re rent valued collect I -- you our as I the I virtually any it, you our you the we that say, you because didn’t today, gave mean, to it, we any payout was, disclosed going assuming collect of rent go if if if now, to is think going the valued that also mean that going deferrals. is mean, don’t XXX%. collect I at to of coverage look what away. is stock all valued collect our respect. technically We ratio the any we’re don’t that And stock It’s is where not to deferrals. sock and in

comes $X million, we $X out. right conservative. think mean, that $X the where million is this it don’t we it’s or million. know. to try reserve, be So, Could We’ll be see I it maybe? I

you So, we’re it. we’re number without not anything, gave -- trying adding not to we the

it. So, you have

Ki Bin Kim

write right? portion, any to not Because not Okay. is that’s typically the right? in anyway, AFFO -- off accounts receivable balance not And that that’s in

Cathy Long

quarter, that is receivable you’re prior Right. from We was wrote accounts asking? a what that off in

Ki Bin Kim

Difficulty] a any receivable, I line be or it mean, rent [Technical there like of $X.XX write-off. two balance just you reserve a was straight doesn’t curious different kind account things. Well, receivable can include I is write-off, line right? straight did

Cathy Long

been a rent line Straight than million. have less would $X receivable

Ki Bin Kim

last Okay. And just question.

asked Someone XQ. ADR the about in you

in [Technical not from I press X. just it $XXX Difficulty] disclose But, really divided But by that’s million your to releases. quarter used run-rate. things XQ are was guys the You in realize first

just is color any what have as of additional XQ? So, do ADR the on you

Cathy Long

some So, what we press we these because -- why put it deferrals what temporary didn’t going of release, also and have on. we the in was difficult

what to be an would figure So, deferrals didn’t number out it because temporary. really make try annualized to were the sense

would June normal XX% back wouldn’t if okay, in July. told your would So, If XX%, sense. in -- for the you June, any you rent to year, I you but it which whole example, somebody, make have goes to take then can annual show

and would year as that bit more soon ADR was were showing insightful, think, the even all as COVID I more knowing So, that we assume is pretty a volatile months long. little

month. COVID annualize during you because that’s rent it, same not single could And was So, this the this true. every time,

Operator

like session. Volk the this question-and-answer to any for turn And closing I’d you. back Thank our Christopher conference comments. concludes

Chris Volk

for all attending to going today. for be questions follow-up Cathy got. call you and Well, Mary are I thank available the any you and

we we’re disappointing not that normally Given and you been has as us. we’re of remotely would to working events, seeing many which periodic during conference

few during non-deal presentations. we’re virtually expecting we’re a and planning third So, conducting investor on the quarter

us. so feel in If of interest in a day. you much. have free to included kind Meantime, have this great an call outreach, Thanks being

Operator

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

your lines. You disconnect may now

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