PINE 2026년 3분기 실적 발표 콜: AFFO 성장 및 가이던스 상향

핵심 요약

• 2026년 3분기 매출은 2050만 달러를 기록했습니다. 일회성 및 비경상 수익이 없었던 이번 분기의 희석주당 FFO와 AFFO는 모두 0.55달러로 전년 동기 대비 약 20% 증가했습니다.
• PINE은 3억 1000만~3억 5000만 달러의 투자 규모 가정을 반영하여 2026년 연간 희석주당 FFO 가이던스를 2.19~2.21달러로, AFFO 가이던스를 2.20~2.22달러로 상향 조정했습니다.
• 올해 들어 현재까지 완료 및 계약 완료된 투자액은 3억 달러를 넘어서며 2025년 전체 실적인 2억 7700만 달러를 초과했습니다. 3분기 부동산 매입액은 총 3920만 달러이며, 가중평균 최초 현금 캡레이트는 8.5%였습니다.
• 추진 중인 1억 1730만 달러 규모의 산업용 포트폴리오 인수 건은 13개 자산, 약 190만 평방피트로 구성되어 있습니다. 임대율은 100%이며, 가중평균 잔여 임대 기간은 10.2년이고 2031년 말 이전에는 임대 만료 건이 없습니다.
• 분기 말 기준 프로포마 조정 EBITDA 대비 순부채 비율은 6.5배였습니다. 경영진은 이번 산업용 자산 인수로 초기 레버리지가 약 7.3배까지 상승할 수 있으나, 계획된 자산 매각과 NOI 성장을 통해 다시 낮아질 것이라고 설명했습니다.
• 신규 자금 조달 약정에는 1억 달러 규모의 4년 만기 기간제 대출과 7500만 달러 규모의 회전한도대출 확장이 포함되어, 총 1억 7500만 달러의 잠재적 유동성이 추가되었습니다.

핵심 재무 데이터

2026년 9월 30일로 종료된 9개월간의 매출은 임대 수익 3810만 달러와 상업용 대출 이자 수익 2070만 달러를 포함해 5890만 달러에 달했습니다. 희석주당 FFO는 1.65달러, AFFO는 1.66달러로 두 지표 모두 전년 동기 대비 약 23% 증가했습니다.

사업 및 운영 실적

PINE은 올해 들어 현재까지 가중평균 최초 캡레이트 8.0%로 8580만 달러 규모의 부동산 매입을 완료했습니다. 3분기 매입 자산에는 베스트바이(Best Buy), 로우스(Lowe's), 딕스 스포팅 구즈(Dick's Sporting Goods)에 임대한 부동산이 포함되었습니다. 분기 마감 후 회사는 애리조나주 챈들러에 위치한 벌링턴(Burlington) 자산을 790만 달러에 매입했습니다.

추진 중인 산업용 포트폴리오 인수가격은 1억 1730만 달러로, 평방피트당 약 63달러 수준입니다. 이 자산들은 11개 주에 분산되어 있으며, 연간 임대료 인상 조건이 포함된 완전 트리플넷(absolute triple-net) 계약에 따라 9개 임차인에게 임대되어 있습니다. 경영진은 임차인들이 해당 입지에서 평균 40년간 운영해 왔으며, 현재 적용 임대료가 시세보다 낮다고 밝혔습니다. 거래 종결은 관례적인 조건 충족을 전제로 2026년 4분기 중반에 이루어질 것으로 예상됩니다.

경영진은 산업용 자산 매입이 새로운 전략적 주력 분야라기보다는 일회성 기회라고 설명하면서도, 매력적인 위험 조정 수익률을 제공하는 다른 부문에도 가능성을 열어두고 있다고 덧붙였습니다.

분기 말 기준 연환산 기본 임대료의 68%는 신용등급 보유 임차인으로부터, 56%는 투자적격등급 임차인으로부터 발생했습니다. 정액 기준 기본 임대료는 총 5390만 달러였습니다.

상업용 대출 포트폴리오에는 현물출자(PIK) 이자를 포함해 가중평균 액면이율 14.4%, 액면 잔액 1억 6010만 달러의 대출 11건이 포함되었습니다. 분기 중 가중평균 수익률 10.2%, 총 1790만 달러 규모의 대출 2건이 조기 상환되었습니다. 대출 포트폴리오는 전체 감가상각 전 자산 가치의 약 20% 수준이라는 경영진의 목표치 부근을 유지했습니다.

경영진 가이던스

경영진은 수정된 FFO 전망치 중간값을 기준으로 2025년 대비 주당 약 17%의 성장을 나타낸다고 밝혔습니다. 이번 가이던스에는 예상 투자, 자산 매각 및 자금 조달 시점, 3분기 1790만 달러의 조기 대출 상환, 그리고 4분기 만기 예정인 수익률 10.25%의 740만 달러 대출이 반영되어 있습니다.

경영진은 2026년 투자 활동이 회사 시가총액과 비슷한 수준에 도달함에 따라 2027년 투자 규모는 낮아질 가능성이 크다고 시사했습니다. 다만 적절한 기회가 포착될 경우 외부 자본이나 파트너를 모색할 수 있다고 덧붙였습니다.

리스크 및 주요 관전 포인트

• 산업용 자산 인수 자금 조달로 인해 초기 레버리지가 6배 대 중반에서 약 7.3배로 상승할 것으로 예상됩니다. 경영진은 자산 매각, 포트폴리오 재편(리사이클링) 및 계약상 임대료 인상을 통해 레버리지를 낮출 계획입니다.
• 2.05% 금리의 1억 달러 규모 SOFR 스왑이 2027년 1월에 만기되며, SOFR을 3.54%로 고정하는 스왑으로 교체되어 금리가 약 150bp 상승할 예정입니다. 별도의 5000만 달러 규모 스왑도 1월에 만기되나 선제적 교체 계약은 체결되지 않은 상태입니다.
• 대출 상환과 금리 인하는 이자 수익에 부담을 줄 것입니다. 경영진은 대출 활동을 조정한 3분기 AFFO는 약 0.53달러(보고치 0.55달러 대비) 수준이었을 것으로 추정했으며, 신규 자산 매입이 이러한 감소분을 상쇄할 것으로 예상했습니다.
• 상업용 대출 포트폴리오에는 약 2년에 걸쳐 분산된 7500만 달러의 미집행 약정액이 있습니다. 경영진은 예정된 대출 만기 회수금이 해당 인출액의 최소 일부를 충당할 것으로 기대하고 있습니다.
• 부동산 매입, 자산 매각 및 대출 상환 시점에 따라 분기별 AFFO와 레버리지가 변동될 수 있습니다.

애널리스트 Q&A 하이라이트

경영진은 매입 캡레이트 목표를 8% 안팎으로 설정하고 있으며, 고금리 환경이 매도 의욕이 높은 주체로부터 자산을 매입할 수 있는 기회를 창출한다고 보고 있다고 밝혔습니다. 또한 추진 중인 산업용 포트폴리오의 가격 산정은 현재의 금리 환경을 반영한 것이라고 말했습니다.

신규 1억 달러 규모의 4년 만기 기간제 대출은 기존 선도 스왑을 통해 거래 종결 시 약 4.75%의 고정금리가 적용될 예정입니다. 조달된 자금은 회전한도대출 차입금을 상환하는 데 사용되며, 회전한도대출은 7500만 달러 확장될 예정입니다.

자산 매각이 레버리지를 낮추는 주요 수단이 될 것으로 예상됩니다. 경영진은 산업용 포트폴리오 중 일부 자산을 매각하거나 수익률이 낮은 자산을 처분하여 더 높은 수익률을 제공하는 기회로 전환(재편)할 수도 있습니다.

경영진은 주거용 토지 대출 익스포저에 대해 안정적인 태도를 유지했으며, 기초 프로젝트가 주로 풍부한 가처분 자본을 보유한 매수자를 대상으로 하는 세컨드, 서드 및 포스 홈 커뮤니티라는 점을 지목했습니다.

실적발표 콘퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

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.

질의응답

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.

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