O - Earnings call transcript Q3 2019 | Realty Income Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Realty Income Third Quarter 2019 Operating Results Conference Call. At this time all participants are in a listen-only mode. After speaker's presentation, there will be question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to Crum, conference Senior like speaker to now Andrew today, Associate would hand over the your I Realty Income.

begin. may You

Andrew Crum

Thank Sumit Meurer, Roy, Chief today us and Chief XXXX call. for Officer and Income's President our all Paul Officer; Discussing be quarter conference operating and for will results Financial Executive third results you Realty joining Treasurer.

future significantly federal make be considered During any may securities The matters this any that law. conference discussed differ certain forward-looking call, statements results company's of the statements. actual we from statements under may will in forward-looking

factors We company's may will disclose in greater XX-Q. such detail the the in that differences cause Form

question the will observing to the order We the participate. Q&A everyone limit call a in portion of two give be to during opportunity

ask queue. additional reenter to may like you the questions, would you If

now over CEO to I the call our will Sumit turn Roy.

Sumit Roy

everyone. Welcome Andrew. Thanks,

We on remain strong are towards quarter. pipeline robust are track XXXX another positioned investment for XXXX as to pleased and solid strong look we a well very We complete with liquidity. a and

During which we spreads historical fourth we estate the our real well approximately above million at average $XXX the enter in invested us billion invested investment to quarter. $X as quarter, brings high-quality approximately

the U.K. activity quarter second investment in our the during Our acquisition international included

distribution Additionally, leased with transactions invested first-ever industrial through tenants to during with grade-rated retailer. quarter three a e-commerce three by our facility investments approximately were our XX% including separate the large rent $XXX million new investment

Real portfolio CIM billion have acquisition Estate announced acquisitions over previously from in Trust the Finance $X Including announced year-to-date. we

the on the quarter towards of capital portfolio our million remainder XXXX. raised XXXX. look of sheet the tranches we expected expected close equity for the various most the the CIM hand $XXX favorably with in acquisition is with transaction $XXX As in in quarter activity of To of and the we year our to positioning close the balance to as and cash a during reminder, fund properties in million ending

cash by in tenant, properties a leased industry, type end to diversified extent property properties. our to contributes different component U.K. rental continues largest portfolio At nearly which to the certain XX retail tenants our outside our retail at to our from geography be in Our traditional flow. and revenue. revenue quarter industrial of of XX Rico commercial of stability located and The is XXX XX.X% were XX% properties states Puerto the industries rental of is

component Walgreens revenue. of with a and/or service We from our of largest rent our and overall X.X% XX% XX.X% tenant price to remains approximately our at environments. portfolio non-discretionary compete rental remains tenants tenants these comes low allow at e-commerce Within revenue. more rental point with believe store variety of industry a effectively of Convenience economic in to characteristics our operate their largest business. retail our

retail in have in factors today's not been been have These recent bankruptcies relevant vast possess the climate industries do characteristics. where majority these retailer of particularly U.S. that

We from our continue quality with tenants. revenue the in generated of portfolio about approximately half grade-rated credit feel annualized the investment to good rental

is X.X portfolio on times. while median X.X rent The the times is retail weighted four-wall ratio coverage average a our for basis

versus Our last properties years. few watch rent is list at relatively based on our the XX.X% consistent number X.X% levels of Occupancy was with of flat the prior of quarter. the

XXXX. We occupancy be XX% continue expect in to approximately to

expiring leases properties in recapturing rent. sold re-leased listing our with expiring recapturing rent. were XXX we over Year-to-date quarter, XXX.X% the we recapturing we have have of properties properties XX XXX.X% XXX% re-leased of that expiring the on X,XXX over During re-leased properties rent the of those XXXX, or Since re-leased.

and X.X% quarter the during X.X% increased revenue rental same-store Our year-to-date.

approximately of increases. rent X%. continues for rate our leases run to projected contractual XXXX be have XX% Approximately Our

results. financial to it detail to hand over provide additional our on me Paul Let

Paul Meurer

our the financial in Sumit. Thanks, quarter, income few with the starting I provide results will statement. a for items highlights for

G&A expense of the and both were X.X% was X.X% Our comparable the below quarter reimbursements a of year-to-date excluding which for revenue year percentage as ago periods.

sector, We to ratio X% have and XXXX. expect remain we REIT continue the the in below our to net G&A margin lease in lowest G&A

revenue, from Our our was expenses per a year the increase. for available property X.X% as is which quarter, the we dividends year-to-date have actual in X.X% AFFO represents X.XX% quarter share was $X.XX expectation non-reimbursable as for or or range. which to and percentage the better excluding Adjusted of reimbursements a periods, than cash the for full distribution X.X% funds operations

one with structure to turning only capital Briefly least balance REITs we a A maintain remain of conservative our two and at sheet. the few to We've continued ratings.

third during million large Use entirely we line approximately borrowings program. acquisition. credit CIM repaid and pre-fund through the to of acquisition were the course proceeds our common As Sumit almost ATM active pipeline, our raised an of portfolio $XXX mentioned, including on quarter, equity of of

million We finished quarter fixed ended the credit debt-to-EBITDA ratio $X with of X.X and the hand. quarter times on approximately on and $XXX of of a cash coverage ratio times. nothing X.X of with outstanding billion our We charge a line

of schedule over bonds coverage in to XXXX. have and excellent continue sheet shape only have maturing $X.X is In we $XXX maturity liquidity. both as X.X maturity leverage, just and laddered great the and million metrics is debt of is of we XXXX. And in maturity and our shape, well excellent schedule balance summary, thereafter low our in average remains with remainder coming years XXXX million strong debt overall Our the debt weighted in of due our

Now turn the to call back let me Sumit. over

Sumit Roy

Thank you, Paul.

rate in weighted average years. in in XX average During and the located quarter initial XX cash XX.X XXXX, with a of third of lease term a $XXX we Kingdom approximately X.X% cap weighted of invested states at the United million properties

in the tenants. cap was the are quarter acquisitions revenue total on average on generated average was during rate from and The of a from in are range, On X% industrial. rate acquisitions retail the total approximately low XX% weighted while initial from basis cash range. revenues acquisitions mid the retail are XX% of X% generated investment XX% industrial cap the grade-rated weighted

These XX tenants different leased assets are XX to industries. in

childcare. processing quarter the closed sale-leaseback and were volume and quarter the general of transactions industries Some third investment of third discrete food We significant most XX% approximately transactions. the merchandise, XX are in represented

million domestically XX the quarter, Of invested invested years. cash properties a during of $XXX in with average weighted average at term initial weighted XX.X was of a and million the $XXX rate X.X% cap lease

the During cash a the term was in rate initial weighted quarter, invested one located average with $XX.X lease at weighted in a internationally X.X% years. million of and cap average property XX.X of U.K.

the of are average On and at $X generated XX.X from tenants a of in located revenue X.X% basis, retail industrial. investment XX properties, Year-to-date cash assets XXX are billion XX the a states These from rate XX% of a with initial average XX% XX acquisitions cap lease grade-rated years. XXXX, weighted tenants. invested term are are in from and weighted and in United we Kingdom different leased industries. total revenues XX% to of

Of XX.X nearly weighted cap transactions a domestically were the Approximately and invested transactions. of year-to-date six our of was independent $XX lease years. $X.X of at transactions average XX in with billion sale-leaseback volume investment above closed billion Of X.X% rate initial weighted average a term year-to-date, for properties XX% cash invested year-to-date, was XXX $X million. the

with flow billion we international third billion were average remains during the years. billion domestic the has lease billion XX XX of a cap invested the initial X.X% internationally in and sourced of in weighted quarter. million term approximately $X a rate Transaction as U.K. $XX Year-to-date $XXX in cash properties located opportunities. been average weighted $X healthy approximately the and were sourced Of quarter, $XX at opportunities

international marks This to opportunities sourced our sourced the XXXX, opportunities, company's investment during and we assets. third $XX.X the transaction Of portfolios and potential billion billion which in have of the quarter, XX% our incremental highest opportunities the pipeline belief -- Investment-grade were opportunities billion our XX% domestic domestic quarter. business. continues for sourced XX% $XX.X volume that Year-to-date annual represented truly $X.X opportunities, volume were our history. these $XX.X the approximately third confirm international Of to were one-off or in billion is investment opportunities. sourced were

Of acquisitions transactions. third quarter, billion in one-off portfolios $XX.X XX% year-to-date, one-off the assets. approximately and Of XX% the closed sourced were $XXX were XX% the total billion in $XX.X were or million

pricing essentially the in unchanged quarter. in third rates cap were to the U.S. As

around X% to to high properties trading high trading rate low cap X% X% from Investment-grade rate properties X% from are are cap range. range non-investment-grade and

in X% Non-investment-grade cap United cap X% are Regarding to the cap we X% of investment-grade trading rates from properties properties the low high from are mid-X% Kingdom the range. investment-grade range. assets for types rate to rate implied low or are trading targeting,

both of year spreads domestic average were first Our international weighted relative XXX were average healthy XXX our approximately as above basis to investments initial for cost define less of quarter averaging weighted cash investment capital. basis cost spreads. during investment nominal capital our points yield We for average our investments and of spreads points historical which the

Our investment believe company large pursue that publicly sale-leaseback and only on has traded pipeline net a the negotiated scale robust capital lease we to portfolio CIM of lease remains cost the basis. which during are the corporate and for to the of size, billion we approximately further pleased were We quarter, $X.XX demonstrates net Estate acquisition announce industry. size a the scale advantages in from and diversified Real Trust Finance transactions

XXXX billion We of guidance billion. guideline -- acquisition expect $X.XX continue $X.X to to

active. remains program disposition Our

X.X% million at an sold net and X.X%. $XX.X This During an realized X.X%. a realized properties XX proceeds cash million for the cap of cash of year-to-date unlevered of to brings rate at and $XX.X rate quarter we IRR sold net XX cap of properties for unlevered net of a X.X% IRR us

of of to that proceeds better portfolio our the investment our properties quality improve continue assets sale through sales parameters. into recycling We fit the the nonstrategic

dispositions to We million $XXX $XX between million XXXX. continue in and of expect

the increased XXXrd dividend In time September, the history. our we company's for in

dividend year an and based payout a XX.X% X% increase current of ago the represents of equates guidance. AFFO on annualized ratio XXXX period approximately over the to Our midpoint

year company's a XXXX since X.X%. have in our listing growing at increased compound dividend dividend annual the We average of rate the every

the another XXXX. Aristocrats Yield well-positioned Index. as only it are five very proud be Dividend strong and completed quarter one up, We look To wrap to are S&P High REITs towards we in of we

continues portfolio capitalized growth perform our and investment to we well, are liquidity conservatively healthy remains Our initiatives. ample pursue to pipeline additional with

I'd Operator? time, up it to for open questions. like this At

Operator

first Your with from Christy Citi. comes Instructions] [Operator McElroy question

line Your open. is

Christy McElroy

Hi. Thanks, guys.

of the much in difference you that deals cap deals? referred How deal was comments versus And the Just on acquisitions the on e-commerce was volume in on that industrial following the retailer what industrial large industrial your to? rate other the of QX. the up

Sumit Roy

slightly approximately That's all were represented in right X%. each They assets XX% overall investments other. industrial. of close in around to rates three were And the cap north of the fairly

Christy McElroy

in done Is other relative of about you've how to of, do you what retail? industrial to large do -- relative kind And there in more retailers? and investment e-commerce do you to sort this or historically your think with that, what

Sumit Roy

high-quality very we growth in Look, and asset this there around bread especially, very points we've we is what be time always can do very being attractive averages, able asset are where in two But capture leases. and long-term our very type and and what in that retail it said above in continues quarter. when well right make is spreads case. accomplish what to. tenants an are industrial portfolio rates precisely that we us, preponderance investments to the will long-term are with we the overall for be with particular butter we were that a always that we There focused are on the which that attracted And very our of embedded obviously to these have we are finance that proposition can leases types

and the with transact, -- ability more So happy to shared three that much we I've with it of with provisions the assets on you especially some it very were attractive. that these made

Christy McElroy

QX? QX. And of an you've then of, Okay. And deal CIM from a at sort you, of, sort acquisition funding tranche could from bond where you're your you where closed lastly term? billion got QX. line funding other, on for incremental incremental your that after in see for any, the do credit. deal of, We cash to on first you've another balance ATM QX. additional perspective Is CIM in just you billion that closed intention And your you issuance got the and And then volume and are on near a funding plan sort or

Sumit Roy

equity quarter unsecured market having a where trade. the obviously pre-funded given to that the beauty much a of capital of ATM The is access in variety the leverage Christy the we X.X today our end some can balance we But debt-to-EBITDA we at of certainly the of quarter. third of gives pretty which third or us sheet through market access ability the the

plans we you with share basis, of going are, are from a So our be it, but it I are flow at looking that but because free financing on with cash dispositions combination analyzing the of we precisely a day-out to it -- to will the day-in operations what and want along generating. some that be don't

Christy McElroy

much so the for Thanks Okay. time.

Sumit Roy

Sure.

Operator

next from Shivani Deutsche Your Sood question Bank. comes with

line Your is open.

Shivani Sood

Hey, good afternoon.

disposition the cycled boxes. the of guys have it amounts like on vacant you Just side, looks fair

if So was by trying specific of competitive just driven that something just take private or markets very advantage now. curious the right to

Sumit Roy

we and about to a It every glad the best not Thanks of to asset asset this vacant being was quarter -- able company to the a vacant on I'm you've thing vacant determination look for that is asset assets we and we question, net is economic preponderance why decided up lease at have why design more Shivani. that there freestanding The sales. particular such are make brought as outcome. this by a asset, what advantage of sales. is

a asset to the some asset we market. what is pay on carrying justify and in willing that when overall is costs costs vacant to is we able tenant carrying Holding our the vacant belief a the that a return justifiable, profile to is and get to that of can if sell the rents open get are we superior incurring

But at one on that to yield precisely sales forward way warranted, that whether read terms sell that's if is of And I an a sort does market of price are going go more the do quarter. what to not asset wouldn't not. or going and we equation this and in particular did other holding vacant we we it the we asset versus to

what decision a it happens they on had for And basis, team is asset we determining management right strategy day-out quite a is few this a asset. are a that just constantly day-in sales. the This our where quarter is that asset in given involved vacant particular so in

Shivani Sood

Thanks color. your on really see for longer excuse given rate can a of update stay if And continue thoughts in environment? yields, just the give on pipeline we a investment lower interest helpful. It's the me. expect overall if to you just an that higher the we just relative then that as Should us to development increase component wondering, for --

Sumit Roy

$XX point question. we good it high call our focused development as that's is To $XXX program what And been million, today, management has part you've yield an between that it to made which the Once that asset of team Shivani, million. are as to a again, very regarding the anywhere be $XX does. higher that million is continues that area on.

involved assets. can is are thinking that vast some options get particular we the we the is we is constantly are we explore reposition developments those -- back, in. see asset When and majority about that currently an of that the we whether to answer the of And one cases in yes

to how higher much were tenants. a that's us give one we tenant our yield fact, Starbucks does to continue it relationships. expand as And get our of and yes, in to And able allows us

So we that today but on to program going that that build forward. it's one a It's is will we program like. a small continue

Shivani Sood

time. Thanks for the

Sumit Roy

Thank you.

Operator

next question Stevenson Rob from Janney. Your comes with

Your line is open.

Rob Stevenson

afternoon, Good guys.

funnel So of look is are sort of of staffing sort at looking non-U.K., how like there days? your over acquisitions what guys your these these days? the European you going? U.S. And any And outside

Sumit Roy

with Most Yes we Rob. $X billion. what in you have of is that the in at question, all sourcing the number for sourced thanks So -- the looking the are we we currently U.K. shared

the was it sourcing of primarily by it Some but U.K. Europe, was in in mainland driven

we for not focus our But But on U.K. right to can the We consider currently. lean moving focus continuing wouldn't we a flow one. the that to priority and say not Europe. creating business is that's in to That on is that that stabilizing are opportunity, Western the

that team With to cetera, et making up close the we happen. an regards to and very setting are office

calls one December. this in our the officers potentially veteran acquisition mentioned I later previous month think of this by we U.K. but to I've my moving one certainly of have

local with supplementing seeding from going as that that that And the as team have portfolio the over And have the functions well of we office functions a the of outsourced. then that about. this we And will the accommodate that of some can somebody that support also very forward. time And are be excited well. I think I've of bringing in midst been are mentioned markets support built in to some when outsourced we justify will that we team these grow particular

Rob Stevenson

for more Fitch? Moody's you're even why ago Okay. of keeping A be reason can and you from What languishing you S&P Paul telling if while mean, at what's A a -- now. word I an And the then a the of rating year been they you've are BBB+? at you termed still than sort sort upgraded

Paul Meurer

bit versus your we're a deserving to only support well with REITs metrics of an et there but and other significant also economic on A-rated demonstrates basis analysis. comparable data smiling that I'm show a with our et shared upgrade Rob. there, them out have that, cetera. cycles, We not that certainly stability agree We different through cetera think

level. their bit So move we a as more it a would ready appropriate haven't And of hopefully for They to positive been we and them give to where up that review also stand. review, to are soon. homework that kind it conclusion do that just but and to we be the continue perplexed reach think next

Rob Stevenson

of guys? positive? this a practical there upgrade Or more any you point have just marketing impact on Would the is at it

Paul Meurer

difference nor would Our at in doesn't really additional them. it rating at any market, It make way understanding have that point the us inhibit this market a no. to with moment this is in

Rob Stevenson

guys. Thanks Okay.

Paul Meurer

you. Thank

Operator

comes with Your Linda Jefferies. from Tsai question next

line Your is open.

Linda Tsai

for transactions likely these When potential international of the and the investment movements? you I you what my realize the terms do are with at consider I spreads buying, in inputs taking for largely hold would what to but mix quarters? question. of has some look mean, domestic to ranges Thanks in Hi. to it expect upcoming you're

Sumit Roy

range. focus need think and are there Well, And the what are I've to pointed the rates obviously in that things is said to One U.K. to on tend as we assets be cap high rates. cap mid remarks that is. in my the Xs in to I two you you've the out that order for interested spread X% in determine the prepared the the

becomes, financing that we our question okay, particular do that's capital go the And come advantages really acquisition. of how the about then where cost And X%. to

nominal of capital U.K. Our is weighted average the today around cost in X.X%. the right

And a very It's clearly And so higher. are buy then able we to spread. X.X% a of is closer points our on even a X.X%. side, of XXX cap -- the And U.S. to cost healthy is rate. assets blended higher but X.X% basis capital at today

advantageous quite And as the are being so there well. spreads

into happens in So sort are once capital, quarter, the essentially you this that spreads of the same. so account I -- of particular take cost it will the the it's cap just rates where being think

spread be But about to I a less to U.K. in that may the having trend going quarters the other. possible think superior a the are do one spread better. think wouldn't able we forward. necessarily wouldn't -- the norm what had quite or geography we I forecast it's even U.S. you -- line, versus in But I if have to XX% U.K. is was it say that the in There

Linda Tsai

deleveraged about maintain given expectation be to five a in would XQ, then And forward? times to you've that. for Thanks going reasonable this

Sumit Roy

the our is at we said flexibility shared X.X to I we plus And publicly and run times the agencies that that's have want think with we what minus. business a what for rating that the have us. being fact the is The five the today funding visibility given driven about largely right is Code into. we pipeline that we over spoke that it by ZIP have

it say to necessarily that sheet. balance that where wouldn't us X.X in but I new will expect you operate norm. is I the So five the just would fluctuate, should is say

Linda Tsai

you. Thank

Sumit Roy

Thank you.

Operator

comes question Todd next Fargo. Your with Wells from Stender

Todd Stender

Hi thanks.

look but that reacting stock asking to comment it's of around private, any your master part I'm public is around just two maybe a and leases that tenant when kind you just risk do at past a well to And Thanks. not you speculation some going part that? questions look just at individual maybe in private. these And Just exposure leases. Walgreens today couple in how context then the Walgreens go on maybe as looking this you that on at reminder That's a your just one. talks

Sumit Roy

seen very real-time the truly private flowing change is operators $XX past Sure have $XX the using you're the seen The Todd. a good well correctly. It's market smaller talking has or rumors that value the enterprise especially, private, it's the in that is news if about here accurate. when private, breaking of of good go billion to a route, we tended question. go And we an private billion, have approximately going as profile with businesses is equity look company that $XX billion equity remember about leverage cap if cash Yes, and news in business. I that if

we to the massive would brick-and-mortar. to excited delivery true going to what a health a for network. But belief that through that about thesis our that so the pretty solution lead own And that require we've area is strategic. any the healthcare is very So, fact that we if go changes. said that's entire is brick-and-mortar more which in is care -- lot reasons are be -- an Look feel efficiency And any we is is to is private and going the going delivery of to good. more and need our it of solution the

I but think as that don't private going is If else, a about is would cetera around better? a want even story rumors somebody going and whatever private. so I as there's don't value combined the like some that proposition be start or -- there to to company it et it truth if not buyers with speculating case, that's company the potential be to as that to any there's And think -- happens, who as I that, the why

would be comfortable. very we So, still

don't. With portfolio the that have with we But master we we directly to of just leases, have sale-leaseback that regards want I through to remind most came Walgreens whether Walgreens. you in our

And XX with Walgreens our on years. term the so quality and cetera average I institutional right weighted is these are et growth leases think lease around

ends we going. So, news of comfortable this very up are regardless which direction

Todd Stender

for that. Okay. Thanks

Sumit Roy

Sure.

Operator

question Thalmann. Your Massocca comes John with Ladenburg from next

Your line open. is

John Massocca

Good afternoon.

Sumit Roy

John. Hi

Sumit Roy

So, with a XXXX guidance, regards to of potentially be impact the if portfolio? Understanding might you're disposition not any going your long-term so, transaction, CMFT there is portion that activity? probably helpful. fit would not within good portfolio but how that just commentary And XXXX to give any

Sumit Roy

Sure.

And we announced particular about so when $X.XX I this transaction. this -- think we first transaction, a spoke billion is

about We in have million majority And pursued this of one-off expect particular to assets portfolio close we the the also that later wouldn't year. are this vast said market. we that of it $XXX

-- mean that million of are disposed that so one. necessarily of And be going does the but we all that $XXX not day acquired to have

to it initial better their remaining holding and lease term, we the for selling it. Or hold assets hold the cases, the the to be the end given then could be for the and until it of might to lease rents, imply try that collect assets, us on are it. on the to also some re-tenant rents it actually argument below-market whatever the location, on and would dynamics to then the duration that term of economic In the given

million come share guidance that when $XXX our XXXX. you. with of And absolutely in we we -- information out that out with are small February, going So, bucket in a come we to with that will there's and then

John Massocca

potentially existing going forward? does kind guys And some sense. you've higher makes That debt some Okay. looking sense kind I of of that prepay coupon stack, at your debt. seen then, you peers mean the make for of

Paul Meurer

very over well could. that We did XX fair will. refinancing activity you amount months, of It a past the if

And of do fair bit to at. some a kind is we're cheaper taking becomes it is it as But that that already a we're obviously, look we took there say it still a taking And that that care get to look of closer, so. we they're at. of. something And little

John Massocca

That’s you for Okay. it Thank very much. me.

Operator

Mings question next Collin James. Your Instructions] with [Operator comes from Raymond

is line open. Your

Collin Mings

Hey, good afternoon.

Paul Meurer

Collin. Hi. you? are How

Collin Mings

maybe to it that you doing execute you a bit on on CIM the broadly opportunity? more just maybe relates if believe in a as to well. discount Can about pick and a just little bit on well, Doing maybe us to market your the question, up right there's I just deals. want talk larger available portfolio deal John's update just ability more now, and portfolio

Sumit Roy

Yeah. $X And we've this some are in billion, we checks this able in discounts. big When et billion, market. pursue Look, seen in in discount question believe the write And U.K. when leaseback think over least variants I couple decided has of even cetera, previous we $X.X we transactions. the would this sale last asked We've have that I come been a the that seen to and do at get years, there been portfolio of say, calls. form we of

to and CIM is market. one one-off even portfolio advantages that portfolio XX to if But largely seen XX we the it discounts having don't could to range XXX And points, of have so, specifically scale. discounts. the to And want the speaking, those speak portfolio. anywhere size I to X,XXX basis compare of you between And

Collin Mings

you've to do your guess it to and just I And this highlighted you comments gap Or can all? marketplace? as is that deal you deal or to vary the you Or dynamic point talked really look that narrowing? about to does before, widening across feel that at that speak like

Sumit Roy

you And portfolio Collin. discounts, can see points it's you regardless that of of every do basis a constant What tenant can't tell on tell we amount have is think discount, x the latter, the of I and the remains I the you that regardless but conditions, us vary. will with I market environment. same of leasebacks things sale and to the done we've accommodate discount them. And cost improve our that market then, when the movements multiple tenant, willing they're certainly where given in we've fact, that of we seen on given capital. accommodate

So, it's it discount. not is number, one a but fixed

Collin Mings

last Okay. just And for one me. then, one

Circle touch Just quarter-over-quarter you maybe in the exposure? drop on the can more K directly,

Sumit Roy

probably to That has rollovers. do with

of a long-term they couple the invested Circle we to was and got into we a actually their capital I where of because K think rollovers, convenience And another space, expand we back. want entered store. lease, one which to expand very there had we've one the

So, it the really really of a the and these do movement investment know seeing I couple is happening. committee. don't but what a function is remember just of precisely I was, what

certain we've so, more we've invested vacant cases others back And in in assets. and got

Collin Mings

Got Thank very you it. much.

Sumit Roy

Collin. Sure,

Operator

question-and-answer remarks. turn call. Sumit I Income's closing to of will now This over call portion concludes for the Realty Roy conference the

Sumit Roy

thank NAREIT. So to at you Thank everyone for and we're forward all joining you. us seeing looking today,

Operator

This call. concludes today's conference

may now disconnect. You

Realty Income (O) 5 Nov 192019 Q3 Earnings call transcript