PINE 2026年第3四半期決算説明会：AFFO成長とガイダンス上方修正

主要ハイライト

• 2026年第3四半期の売上高は2,050万ドルでした。希薄化後1株当たりFFOおよびAFFOはいずれも0.55ドルで、前年同期比約20％増加し、当四半期には一時的または非常常的な収入は含まれていません。
• PINEは、3億1,000万ドル〜3億5,000万ドルの投資額前提を反映し、2026年通期の希薄化後1株当たりFFO予想を2.19ドル〜2.21ドルに、AFFO予想を2.20ドル〜2.22ドルに引き上げました。
• 年初来の取引完了済みおよび契約済みの投資額は3億ドルを超え、2025年通期の総額2億7,700万ドルを上回りました。第3四半期の物件取得額は計3,920万ドルで、加重平均初期キャッシュ・キャップレートは8.5％でした。
• 手続き中の1億1,730万ドルの物流・産業用ポートフォリオ取得は13物件、約190万平方フィートで構成されています。稼働率は100％で、加重平均残存賃貸期間は10.2年であり、2031年後半までに満了を迎える賃貸契約はありません。
• 四半期末時点のプロフォーマ調整後EBITDAに対する純有利子負債倍率は6.5倍でした。経営陣は、計画中の資産売却やNOI（純営業利益）の成長によって低下する前に、物流・産業用物件の取得によりレバレッジが当初一時的に約7.3倍まで上昇する可能性があると説明しました。
• 新たな資金調達コミットメントには、1億ドルの4年物タームローンおよび7,500万ドルのリボルビング信用枠の拡大が含まれており、潜在的に1億7,500万ドルの流動性が追加されます。

主要財務データ

2026年9月30日までの9か月間の売上高は5,890万ドルに達し、これには賃貸収入3,810万ドルおよび商業ローン受取利息2,070万ドルが含まれます。希薄化後1株当たりFFOは1.65ドル、AFFOは1.66ドルとなり、いずれも前年同期比で約23％増加しました。

事業および業績の動向

PINEは年初来、加重平均初期キャップレート8.0％で計8,580万ドルの物件取得を完了しました。第3四半期の買収には、ベスト・バイ（Best Buy）、ロウズ（Lowe’s）、ディックス・スポーティング・グッズ（Dick’s Sporting Goods）に賃貸されている物件が含まれます。四半期末以降、同社はアリゾナ州チャンドラーにあるバーリントン（Burlington）の物件を790万ドルで取得しました。

手続き中の物流・産業用ポートフォリオの取得額は1億1,730万ドル（1平方フィート当たり約63ドル）です。これらの物件は11州に分散しており、年次賃料増額条項付きの完全トリプルネット契約に基づき9社のテナントに賃貸されています。経営陣によると、テナントは平均40年間にわたり同拠点営業を続けており、現行賃料は市場相場を下回っています。慣習的な完了条件を満たすことを条件に、2026年第4四半期半ばに取引が完了する見込みです。

経営陣は、物流・産業用物件の取得は新たな戦略的焦点ではなく単発の機会であると説明しつつも、魅力的なリスク調整後利回りを提供する他のセクターに対しても引き続き前向きな姿勢を示しています。

四半期末時点で、年算定額ベースの基本賃料の68％が信用格付けを有するテナントから、56％が投資適格テナントからのものでした。定額法ベースの基本賃料は計5,390万ドルとなりました。

商業ローン・ポートフォリオには11件のローンが含まれており、額面残高は1億6,010万ドル、加重平均クーポン（PIK金利含む）は14.4％でした。当四半期中、加重平均利回り10.2％のローン2件（計1,790万ドル）が繰上返済されました。ローン・ポートフォリオは、減価償却前総資産価値の約20％という経営陣の目標水準付近を維持しました。

業績予想（ガイダンス）

経営陣によると、改定後のFFO見通しは中央値で2025年比約17％の1株当たり成長を示しています。このガイダンスには、想定される投資、売却、資金調達のタイミングのほか、第3四半期における1,790万ドルのローン繰上返済や、第4四半期に償還を迎える利回り10.25％・740万ドルのローンが織り込まれています。

経営陣は、2026年の投資活動が同社の時価総額にほぼ匹敵する水準に達したため、2027年の投資額は低下する可能性が高いと示唆しました。ただし、適切な機会が生じた場合には外部資本やパートナーを模索する可能性もあります。

リスクと注目点

• 物流・産業用物件の買収に伴う資金調達により、レバレッジは当初、6倍台半ばから約7.3倍に上昇する見込みです。経営陣は、資産売却、ポートフォリオのリサイクリング、および契約に基づく賃料引上げを通じてレバレッジを引き下げる計画です。
• 2.05％の1億ドル相当SOFRスワップは2027年1月に満期を迎え、SOFRを3.54％に固定するスワップに置き換えられる予定であり、金利は約150ベーシスポイント（bp）上昇します。これとは別に5,000万ドルのスワップも1月に満期を迎えますが、現時点で事前の代替契約は締結されていません。
• ローンの返済や金利低下は受取利息の押し下げ要因となります。経営陣の試算によると、ローン関連の動きを調整後の第3四半期AFFOは0.55ドルから約0.53ドルになる計算ですが、物件取得によりこの減少分は相殺される見込みです。
• 商業ローン・ポートフォリオには、約2年間にわたる7,500万ドルの未実行融資コミットメントが存在します。経営陣は、予定されているローンの償還によって、これらの融資実行の少なくとも一部を賄うことができると見込んでいます。
• 物件の取得・売却およびローンの返済のタイミングによって、四半期ごとのAFFOやレバレッジに変動が生じる可能性があります。

アナリスト質疑応答の要点

経営陣は、取得キャップレートの目標を8％前後とし、高金利環境は売却意欲の高い売り手から資産を取得する機会を生み出しているとの見方を示しました。また、進行中の物流・産業用ポートフォリオの価格設定には現在の金利環境が反映されていると述べました。

新設される1億ドルの4年物タームローンは、既存のフォワード・スワップを通じて取引実行時に約4.75％に固定される見込みです。調達資金はリボルビング信用の借入返済に充てられ、リボルビング信用枠自体は7,500万ドル拡大されます。

資産売却がレバレッジ低減の主な手段となるとみられています。経営陣はまた、物流・産業用ポートフォリオから一部の資産を売却することや、低利回り物件をより高利回りの機会へリサイクリングする可能性もあります。

経営陣は住宅用土地ローンへのエクスポージャーについて懸念はないとしており、対象プロジェクトは主に潤沢な可処分資本を持つ購買層に向けたセカンドハウス、サードハウス、フォースハウスのコミュニティであると指摘しました。

決算説明会トランスクリプト全文

決算説明会の完全なトランスクリプト

経営陣による説明

Unknown Speaker

Thank you. I'm going to go ahead and start the video.

Operator

Be advised, today's conference is being recorded. I would like to turn the conference over to your speaker today. Jenna McKinney, please go ahead.

Unknown Speaker

Thank you. Joining me and participating on the call this morning are John Albright, President and Chief Executive Officer, Philip Mays, Chief Financial Officer, and other members of the executive team who will be available to answer questions during the call. As a reminder, many of our comments today are considered forward-looking statements under federal securities laws. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed time in greater detail in the company's Form 10-K, Form 10-Q, and other SEC filings. You can find our SEC reports, earnings release, and most recent investor presentation, which contain reconciliations of the non-GAAP financial measures we use, on our website at www.alpinereit.com. With that, I will turn the call over to John.

John Albright

Thank you, Jenna, and good morning, everyone. We're pleased to report another strong quarter. AFFO per diluted share grew 19.6% over the third quarter of last year, and we invested approximately $41 million at a weighted average initial yield of 8.5%. Our investment activity has accelerated meaningfully this year, including our pending $117.3 million industrial portfolio acquisition, which I'll discuss in a moment. Our closed and under contract investments year to date now exceed $300 million, a company record that surpasses our full year 2025 total of $277 million.

As a result of this investment volume, we are raising our full-year 2026 AFFO guidance, which Phil will walk through shortly. Starting with acquisitions, during the quarter we closed $39.2 million of property acquisitions at a weighted average initial cash cap rate of 8.5%. Key tenants included a Best Buy in McAllen, Texas, a Lowe's in Fairfax, Virginia, and a Dick's Sporting Goods in Asheville, North Carolina, which are all investment grade rated and among our top five tenants by ABR.

To date, we've closed on $85.8 million of property acquisitions at a weighted average initial cap rate of 8%. We continue to target well-located properties. We can buy at low basis at attractive initial yield, and we look to selectively recycle lower-yielding properties into new higher yielding opportunities. Subsequent to quarter end, we acquired a Burlington in Chandler, Arizona for $7.9 million. And earlier this month, announced an agreement to acquire a 13-property industrial portfolio for $117.3 million, or approximately $63 per square foot.

The industrial portfolio totals about 1.9 million square feet across 11 states. It is 100% leased to nine tenants on an absolute triple net basis with annual rent escalations. A weighted average remaining lease term of 10.2 years and no expiration before late 2031. While industrial is not a strategic focus, this portfolio stood out for a few reasons. First, it offers an attractive initial yield. Second, the tenant base is diversified and tenants have operated at their sites for an average of 40 years and invested significant capital in them. Third, we believe in-place rents are below market and benefit from annual escalations. We expect to close in the middle of the fourth quarter, subject to customary closing conditions. The new financing Phil will discuss gives us ample capacity to fund it.

At quarter end, our property portfolio consists of 130 properties, totaling 4.8 million square feet across 31 states, with 99.6% occupancy, and a weighted average lease term of 8.7 years. The original straight line base rent was $53.9 million. Approximately 68% of ABR comes from credit-rated tenants and 56% from investment-grade rated tenants. And our commercial loan portfolio received earlier payment in full on two loans totaling $17.9 million and a weighted average yield of 10.2%.

At quarter end, the portfolio consisted of 11 loans with outstanding face amount of $160.1 million and a weighted average coupon, including PIC interest, of 14.4%. The loan book is near our target of approximately 20% of total undepreciated asset value. It complements our property portfolio and increases the overall yield on our investments. As a reminder, the timing of the fundings or repayments can cause the relative size of the loan portfolio to vary from quarter to quarter. With that, I'll turn the call over to Phil.

Philip Mays

Thanks, John. Starting with our results. Third quarter total revenue was $20.5 million, including lease income of $12.8 million and interest income from commercial loan investments of $7.6 million. FFO and AFFO were both $0.55 per diluted share, up approximately 20% from the third quarter of last year. As a reminder, second quarter results included approximately $0.02 per diluted share of non-recurring termination fee income. This quarter did not include any one-time or non-recurring income. For the nine months ended September 30th, total revenue was $58.9 million, including lease income of $38.1 million, and interest income from commercial loan investments of $20.7 million. FFO and AFFO were $1.65 and $1.66 per diluted share, both up approximately 23% from the same period last year.

Turning to the balance sheet, during the quarter, we raised $8.2 million of net proceeds through our common and preferred ATM programs. Year to date, we have now raised approximately $70 million of net proceeds across both programs. We ended the quarter with net debt to pro forma adjusted EBITDA of 6.5 times. This is consistent with last quarter. It is more than a full-turn lower than the 7.7 times we reported a year ago. As of quarter end, we had $398.5 million of debt outstanding at a weighted average interest rate of 4.48% and no debt maturing until 2029.

As previously disclosed, we have $100 million of SOFR swaps at 2.05% that mature in January 2027 and will be replaced with swaps fixing SOFR at 3.54%. Notably, subsequent to quarter end, we received bank commitments for a new $100 million four-year term loan and a $75 million increase to our revolving credit facility. We expect the financing to close in late October and will use the term loan proceeds to reduce borrowings outstanding on a revolving credit facility. In total, this financing adds $175 million of potential liquidity.

Now turning to guidance. As John said, our investment volume has led us to raise guidance. For full year 2026, we are raising our FFO outlook to $2.19 to $2.21 per diluted share, up from $2.10 to $2.13. We are raising our AFFO outlook to $2.20 to $2.22 per diluted share, up from $2.12 to $2.15. At the midpoint, this represents approximately 17% FFO per share growth over 2025. New guidance ranges reflect our increased investment volume assumption of $310 million to $350 million. They reflect the expected timing of investments, dispositions, and financing activity, as well as this quarter's $17.9 million of early loan repayments John discussed, and a $7.4 million loan with a 10.25% yield maturing in the fourth quarter. Finally, based on equity issued this quarter, our quarterly base management fee run rate is now approximately $1.5 million. Operator, please open the call to questions.

Operator

[Operator Instructions] Our first question comes from Jay Kornreich with Cantor Fitzgerald.

質疑応答

Jay Kornreich

Okay. I was wondering if you could just give any further details on the industrial portfolio you announced to acquire, if there's anything further along what the yield was on it, and more specifically just in terms of how you anticipate financing it, and if there's any maybe guidelines around what you think pro forma leverage might be.

John Albright

Hey, Jay, it's John. Thanks for the question. I'll let Phil talk about the financing aspects of it. Because it's under contract, we haven't closed yet. We'll probably save more details until after it closes. But obviously, we've given a fair amount of detail on our investor deck on it without having it been closed. But we love the portfolio because it is higher yielding. It has a nice WALT to over 10 years. It has annual escalations. It's dispersed in 13 properties, nine tenants, and incredibly low rental rate per square foot. So it fits all the boxes of things that we like to buy where there's good yield and limited downside and nice upside. But, Phil, you want to talk about the financing side?

Philip Mays

Sure. Yeah, hey Jay. So next week we should close on our new financing that's disclosed in the earnings release. New term loan, a four-year term loan for $100 million for which the proceeds will be used to pay down the line. And then we're actually growing the line and hitting the accordion there to increase the line $75 million. So we'll initially take it down on the line on debt to EBITDA, but if you just want to look at that solely by itself, we go from mid-6s to low-7s. 7.3-ish, you know, and then we'll look at, you know, we still have some room in our dispo guidance and all to get back down later.

Jay Kornreich

Okay, I appreciate that. That's helpful. And then maybe just more broadly, the industrial portfolio acquisition, it brings some incremental diversity to the otherwise largely retail portfolio. So just wondering how you're thinking about what the ideal makeup of your portfolio is going forward. Are you targeting more industrial or other asset classes, or was this transaction really just more of a one-off?

John Albright

For right now, it's basically a one-off, but we had mentioned in our previous earnings calls that we were open to other sectors. And so, you know, finding that, you know, great risk-adjusted yield, you know, in sectors. And as you know, we already have an industrial property in our portfolio before this acquisition. I don't see anything else in the window, kind of like what we're looking at, but we're open to it.

Operator

Okay, I'll hold it there. Thank you. One moment for our next question. Our next question comes from Matthew Erdner with Jones. Your line is open.

Matthew Erdner

I'd like to touch on the loan portfolio a little bit and, you know, kind of the plans with that capital as it does start to run off. Do you look to keep that portfolio at or near 20%, or should we expect to see some of that capital kind of redeployed into properties? And then on top of that, um, you know, I guess towards the end of the quarter, shares started trading down, which, you know, could present attractive repurchase opportunities. So how do you guys kind of balance the three of those?

John Albright

Yes, thanks. So on the loan book, you know, it's not a hard set as far as an amount that we'll have out there. So there could be a situation where the loan book, you know, pays down, pays off, and we don't replace it to the amount it is now. But I will say in this environment, you know, we are seeing interesting opportunities to replace the loans that we have. So, you know, nothing, you know, right now, but certainly this is a good environment where to get, you know, really terrific sponsors, terrific assets, great locations, great basis. So I would expect that there'll be more opportunities, but it could be a situation where it does pay down in any way. That's kind of where we are with a loan book.

Matthew Erdner

Got it. Appreciate that. And then looking at dispositions, are there any credits that you guys may look to move on to or on from and call it '27, you know, as we continue to go forward?

John Albright

Yeah, I mean, we're constantly, as you know, pruning the portfolio. And of course, you know, we have uh, some Walgreens left, but their credit gets better. And we're just kind of cash flowing those out until, you know, find that 1031 uh buyer. Um, and, you know, we have an at-home as you know, but the at-home is in Charlotte in a terrific location. We had another user that wanted to buy it and at-home didn't want to leave. So, you know, the locations that we have are really strong. We have one Sportsman's Warehouse where we have someone that wants to buy that. The Party City in Long Island, we're far along on a lease to replace that. So we're always pruning, but nothing that.

Operator

Got it. Thank you, guys. One moment for our next question. Our next question comes from Richard Milligan with Raymond James. Your line is open.

Richard Milligan

John, maybe you could just give some comments on what you're seeing in terms of maybe a shift in cap rates or if you're seeing the market move at all just given the higher interest rate environment.

John Albright

Sure. I mean, clearly, you know, we're saving our capital for, you know, really good opportunities where we are getting that higher yield potential. So, you know, we're going to be targeting sort of that eight cap plus or minus. And, you know, I would say that people are out in the market right now selling something, that means they want to clear the deck. So you probably have in this environment people that are going to sell, going to transact, no matter what versus a market where they're seeing better pricing and they're taking something out to market. So this is the time that gets us excited. So hopefully we'll have some good hunting here.

Richard Milligan

Thanks for that. And Phil, um, just given the new debt or the new financings and then the swap burn-offs, is there any way to quantify what the potential impact is next year as we think about the higher rates and the swap burn-offs?

Philip Mays

Yes, there's two swaps, RJ, that expire both in January. One is for $100 million. I talked about it in my prepared remarks at around 200 basis points. So it's going to roll. We have a forward swap in place that will replace it. That is below market but higher than the 200 that that swap was at. So that $100 million will roll up about 150 basis points. And then the only other swap we have burning off is $50 million. And it also matures in January. We do not have a forward to replace it, but it's closer to market. It's maybe 50 bips below market. So that one won't, it's smaller, it's $50 million, and it's closer to market, so that one will have a little sting, but not as much. Those are the two biggest moving parts on our rates for next year.

Richard Milligan

Okay, great. Thanks, guys.

Operator

Thank you. One moment for our next question. Our next question comes from Michael Goldsmith with UBS.

Michael Goldsmith

Um, you know, just obviously big industrial portfolio. And yet the implied fourth quarter guidance is sort of similar to the third quarter AFFO per share. So can you kind of bridge, you know, the moving pieces from the third quarter to the fourth quarter? And then, you know, is that like a $0.55, like the right runway to think about just kind of going forward, I guess building off of that last question.

Philip Mays

Yes. Hey, Michael. It's Phil. So in the quarter, as we noted, John noted, we had a couple of loans that paid off. And then in the fourth quarter, if you look at our loan schedule, there's one for $7 million, $8 million, it's also scheduled to pay off. In addition to that, we do have the rate that adjusts down on the large residential loan. So the $0.55 in the third quarter, if you kind of adjust for all that, just the loan activity, it probably falls back to call it $0.53 or so. And then with the acquisitions we announced in particular the industrial portfolio, that will kind of replace it. So it looks like in the middle of our guidance, the run rate's kind of consistent with the third quarter, but there's really moving parts there. A little less loan and then the acquisition, industrial acquisition, bringing it back to And look, it could be higher or lower. It'll just depend on timing of when the acquisitions close versus any dispositions.

Michael Goldsmith

Got it. Thanks for that. And then leverage ticking up here, you know, over the last year you worked to take it down. I guess just what's the plan to work the leverage down from here and just how are you thinking about that in this current environment?

John Albright

Yes, I'll take the first part of it and Phil can follow on. Look, we have some dispo plans and even the industrial portfolio, there might be some properties we want to spin out on that one. So it's really, I would say, asset sales, obviously, the capital markets are there. There may be some help there, but, you know, we have a fair amount of properties with lower cap rate sort of attributes. So that's sort of the plan.

Philip Mays

Yes, as John said, dispos will be the biggest mover there, but also just we do have some annual bumps in the portfolio where NOI will grow. And recycling, not just straight dispos, could also help earnings grow in addition to that. In addition to disposition. So, we've got a phase to incrementally move leverage down.

Unknown Speaker

Got it. Thanks so much. Good luck in the fourth quarter.

Philip Mays

Thank you.

Operator

One moment for our next question. Our next question comes from Gaurav Mehta with Alliance Global Partners. Your line is open.

Gaurav Mehta

I wanted to ask you on the financing for industrial portfolio. I don't know if I missed it, but can you provide the cost of financing of the term loan? How much was the rate on the term loan?

Philip Mays

The new term loan has not closed yet. There's a swap in it. The rate will be a little higher than the other two term loans, but it'll generally be fairly consistent with it. And then our variable rate debt now is, call it 5%, a little higher depending on where SOFR sits.

Gaurav Mehta

Okay. The commercial loan portfolio, what's the timing of $75 million unfunded commitments in the portfolio?

Philip Mays

It's spread out over a couple of years. And then we also, that's just the unfunded piece. Keep in mind that over those two years, there will also be some loans maturing. So, it's $75 million it'll be something less net of the loans maturing and you can see the schedule you can see the maturity dates on. There we have $8 million paying down in the fourth quarter alone. So, you know, repayments will help, you know, fund some of the draws actually going out so that, you know, we never have to really come out of pocket, the $75 million at any moment in time. Those draws are spread out over two years and can be at least partially handled with just loans maturing.

Gaurav Mehta

All right. Thank you. That's all I have.

Operator

One moment for our next question. Our next question comes from Alec Feygin with Baird. Your line is open.

Alec Feygin

On the swaps, are you assuming for the $50 million and the $100 million, are you assuming to swap that in the fourth quarter or you know we'll drag into the first quarter.

Philip Mays

For the new $100 million four-year term loan, it's already swapped. We have a forward on it. And so that rate will be called 4.75-ish on that. So we don't really have to do that. We already had a forward that we can just move over to that swap. So there's no new swap to fix it. So it'll be fixed at closing. It doesn't go all the way out to the full term of it. So we will at some point look to do the tail later.

Alec Feygin

But it'll be 4.75-ish at close. Okay, that's helpful. I had, you know, you talked in your prepared remarks about the loan maturing and as well as the rate being lowered on that residential construction loan. Do you have any visibility in any of your lenders potentially doing any early prepayments or payoffs in the loan book?

John Albright

There's some, but not a material amount.

Unknown Speaker

Got it. Thank you. That's it for me.

John Albright

Sure.

Philip Mays

Well, thank you, everyone.

Operator

One moment for our next question. Our next question comes from John Massocca with Raleigh Securities. Your line is open.

John Massocca

I know you're not providing kind of '27 guidance at this point, but how are you thinking about kind of investment volume in the first half of next year just given, you know, taking down kind of a sizable transaction here at the end of the year? And I know there's some offsets to it, but you do have some of these loan commitments outstanding. I mean, is that, is it kind of fair, some of your peers have kind of also indicated that you might slow transaction volume at the start of next year, just as this capital market situation kind of shakes out or is that kind of being too much at into things that might be.

John Albright

Since we're basically doing the amount of investment volume this year equal to our market cap, you can probably figure that it should be less next year. So I don't know how many years we can kind of keep on doing our market cap investment. So, but, you know, look, we always, you know, it is too early, but, you know, for sure, if we find opportunities that really fit, we're going to find the capital. And it could be a partner, and that's easy if the capital markets are kind to our stock and our stock securities and we'll find external capital. There's incredible amount of that right now and they in the net lease space as you guys probably follow it better than we do that, you know, every private equity group, mammoth private equity groups have or starting net lease groups. So there's no shortage of capital, so we look forward to kind of finding those opportunities, and that's our job is to find the right capital for it.

John Massocca

Okay. Maybe circling back to the industrial acquisition, I know you haven't closed it yet, so maybe you're kind of reticent to provide too many details. When did this kind of come across your desk? Did we kind of get more color on pricing? I mean, is this kind of pricing in the new interest rate environment, or is this something that kind of was still attractive but maybe kind of sourced prior to the kind of tenure moving up significantly here at the end?

John Albright

Yeah, the portfolio sort of happened. It was not a long, drawn-out process. I mean, it had been fully marketed, but it was one where the pricing is somewhat reflecting this new environment of higher interest rates. So we're still very comfortable with where the cap rate is relative to where the 10-year is.

John Massocca

Okay, that's it for me. Thank you very much.

Operator

One moment for our next question. Our next question comes from Craig Kucera with Lucid Capital Markets. Your line is open.

Craig Kucera

John, it's obviously a pretty tough housing environment given interest rates. Can you give us an update on how the projects underlying residential land loans are performing? You know, are they on track relative to budget or and and how are you feeling about exposure to residential land loans right now?

John Albright

Yeah, I mean, we feel very good with the ones that were in because they're second home, third home, fourth home sort of communities. And actually, we're very happy with the community. You know, believe it or not, the fall market is the strongest market. And I think, uh, you know, what you're seeing on the, you know, high, high net worth sort of folks is that, you know, owning sort of, you know, sticks and bricks isn't a bad thing to have. Um, so we're not worried about kind of where our position in these. It's not like, you know, first-time home buyers or move-ups. This is sort of like, you know, a lot of discretionary capital.

Craig Kucera

Got it. So not very interest-sensitive, more of a cash pay is what you're saying? Exactly. Okay. Okay. That's it for me. Thank you.

Operator

And I'm not showing any further questions at this time. And as such, this does conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.

This live transcript is auto-generated without human intervention or review.