Operator: Good morning. And welcome to the Agree Realty Second Quarter 26 Earnings Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your touch tone phone. To withdraw your question, please press star then 1. Please limit yourself to 2 questions during this call. Note, this event is being recorded. I would now like to turn the conference over to Reuben Goldman Treatman senior director of corporate finance. Please go ahead, Ruben.
Reuben Goldman Treatman: Thank you. Good morning, everyone, and thank you for joining us for Acre Realty's second quarter 26 earnings call. Before turning the call over to Joel and Peter to discuss our results for the quarter, let me first run through the cautionary language. Please note that during this call, we will make certain statements that may be considered forward looking under federal securities law. Including statements related to our updated 2026 guidance, our actual results may differ significantly from the matters discussed in any forward looking statements for a number of reasons. Please see yesterday's earnings release and our SEC filings including our latest annual report on Form 10 ks for a discussion of various risks and uncertainties underlying our forward looking statements. In addition, we discuss non GAAP financial measures, including core funds from operations or core FFO, adjusted funds from operations or AFFO, net debt to enterprise value, fixed charge coverage ratio, and pro forma net debt to recurring EBITDA. Reconciliations of our historical non GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release, website and SEC filings. I will now turn the call over to Joel.
Joel N. Agree: Thanks, Ruben, and thank you all for joining us this morning. I am extremely pleased with our performance during the second quarter which represents a significant milestone in our company's history. During the quarter, we invested a company record of $500 million across our 3 external growth platforms. While the numbers are quite impressive, the combination of real estate attributes, credit composition, and lease term similarly represent the highest quality quarter our company's history. All 3 of our external growth platforms have broad and expansive pipelines, enabling us to once again raise our full year investment volume guidance to an updated range of $1.6 billion to $1.8 billion The midpoint of this range surpasses last year's investment activity represents 24% increase over our initial investment volume guidance provided at the beginning of the year. Based on our increased investment activities and the performance of our portfolio year to date, we are raising our full year AFFO per share guidance by $0.02 at the midpoint to a new range of $4.57 to $4.59. This translates to nearly 6% AFFO per share growth at the midpoint and underscores what has long differentiated ADC. Our ability to compound consistent, reliable earnings growth while maintaining unwavering discipline to our investment and balance sheet strategies. Peter will provide further details on the guidance range and its inputs shortly. That said, the underappreciated and I believe more compelling story is the unique market position that we have now established. Over time, we have built durable competitive moats, deep retailer relationships, and an internal asset management platform that delivers a full suite of solutions to our partners. These advantages have created a differentiated business that has been over 15 years in the making. As I have said many times, spread investing is quite simple. Constructing a retail net lease leader with multiple growth frontiers wholly focused on a distinct sandbox of the country's best retailers, was the ultimate goal. We are supporting this growth by continuing to invest in the people, processes, and technology that underpin our platform. That commitment to constant improvement has long been part of our DNA. Today is reflected in how we are leveraging AI across the organization to improve decision making, streamline workflows, and accelerate transaction execution. While we are already benefiting from meaningful efficiencies, believe the longer term opportunity is even greater as AI becomes increasingly embedded throughout our platform. Combined with enhanced integrations, the next iteration of our coming online later this year. These investments will further strengthen our operating leverage. Moving on to the second quarter in detail. We invested a company record of over $500 million across 102 properties across our 3 platforms. This includes $451 million of acquisitions across 82 retail net lease assets, the highest level of quarterly activity since the depths of COVID. The properties acquired during the quarter are leased to leading operators in the auto parts, home improvement, grocery, farm and rural supply, and convenience store sectors. Notable acquisitions during the quarter included 3 Walmart Supercenter ground leases in Missouri, Ohio and Wisconsin, a Walmart Neighborhood Market in Oregon, a portfolio of BP branded travel centers, and a Home Depot ground lease in New Hampshire. The acquired properties had a weighted average cap rate of 7%, and a weighted average lease term of 11.2 years. Approximately 13.5% of annualized base rents acquired were derived from ground lease assets while investment grade retailers accounted for over 73% of the annualized base rents acquired. During the second quarter, our development and DFP platforms continued to scale and set a company record for construction start volume. 5 projects broke ground with total anticipated costs of approximately $88 million including our 7th and 8th 7-Elevens currently under construction. As well as 3 Ross Dress for Less locations 2 Burlington, and 3 TJX concepts. Through June 30, we have commenced more than $105 million of projects over 3x the level achieved in the prior period. Underscoring our continued progress toward our medium term objective of $250 million of annual development and Developer Funding Platform commencements. In total, we had 20 projects either completed or under construction during the first half of the year, representing a company record of approximately $200 million of committed capital. We anticipate development in DFP spend materially progress in coming quarters. Construction continued on 10 projects during the quarter with aggregate anticipated cost of over $83 million. These projects include Burlington, Sunbelt Rentals, and Ross. 1 project of Sunbelt Rentals in Missouri was completed during the quarter for just over $6 million. As ever foreshadowed in our prior white papers, we continue to believe deeply and invest heavily in both the off price and large-format convenience store sectors. Today, we are amongst the largest owners of both in the country have a significant pipeline of additional opportunities. On the disposition front, we sold 14 properties during the quarter for gross proceeds of approximately $30 million at a weighted average cap rate of 7%. The dispositions were primarily comprised of 3 Goodyear locations 4 Advance Auto Parts stores as we continue to call our portfolio lower performing, or attractive 1.03 thousand opportunities. I would note that none of the dispositions were of investment grade credit and limited term remaining of approximately 6.9 years. Our asset management team continues to address upcoming lease maturities. We executed new leases, extensions, or options approximately 760 thousand square feet of gross leasable area during the second quarter with a recapture rate of approximately 105%. This included a Sam's Club in Maryland and a Walmart Supercenter in Georgia. In the first half of the year, we executed new leases, extensions or options in approximately 1.6 million square feet of gross leasable area with a recapture rate of approximately 105%. We are in excellent position for the remainder of the year with just 18 leases 40 basis points of annualized base rents maturing. Which is down by over 100 basis points from the start of the year. Given the progress achieved year to date, our occupancy ticked up 10 basis points sequentially to match another company record of 99.8%. At quarter end, our best in class portfolio stood at 2.83 thousand properties, spanning all 50 states, the District of Columbia. The portfolio includes 268 ground leases comprising over 10% of annualized base rents, are investment grade exposure stood at nearly 2/3 of our portfolio. With that I will hand the call over to Peter to discuss our financial results for the quarter.
Peter Coughenour: Thank you, Joel. Starting with earnings, core FFO per share was $1.13 for the second quarter. Which represents a 7.5% increase compared to the second quarter of last year. AFFO per share was $1.14 for the quarter, representing a 7.4% year over year increase. As Joel highlighted, we have updated our full year 2026 earnings outlook to reflect a very strong first half of the year. We raised our full year AFFO per share guidance to a new range of $4.57 to $4.59, which is a 2¢ increase at the midpoint and implies year over year growth of nearly 6%. The increase in our earnings guidance is driven by higher investment activity as well as the continued strong performance of our portfolio. Our guidance has been updated to include an assumption of 25 basis points of credit and occupancy loss for the year. Which is at the low end of our prior range of 25 to 50 basis points. As a reminder, our definition of credit and occupancy loss is fully loaded. Encompassing not only credit events, but downtime due to a tenant vacating at lease maturity unrelated to credit issues, and other partial or nonpayments for any reason. It also includes all operating and tax expenses that ADC is responsible for paying while a space is vacant. In addition to lost rental revenue. The supplemental that we introduced last quarter breaks out these components. Year to date, we have experienced 10 basis points of fully loaded credit and occupancy loss. Moving on to the balance sheet. Total capital markets activity year to date is over $1 billion. During the quarter, we sold approximately 400 thousand shares of forward equity, for net proceeds of approximately $31 million We also settled approximately 4.3 million shares of existing forward equity for net proceeds of almost $315 million. From a debt perspective, we drew down the remaining $100 million on our $350 million 5 point 5 year delayed draw term loan. Which is swapped at a fixed rate of approximately 4%. We also took further steps to hedge against interest rate volatility entering into another $50 million of forward starting swaps during the quarter. In total, we now have $300 million of forward starting swaps, effectively fixing the base rate for a contemplated 10-year unsecured debt issuance at roughly 4.1%. Over the past 5 years, we have received approximately $63 million of net proceeds from our proactive hedging activity resulting in annual interest savings of over $6 million. This excludes the $300 million of outstanding forward starting swaps that are currently in the money. Those swaps together with approximately $1.1 billion of outstanding forward equity, represent approximately $1.4 billion of hedge capital. Providing meaningful visibility into our medium term cost of capital during a period of macro uncertainty. At quarter end, total liquidity stood at approximately $1.9 billion including cash on hand, forward equity as well as over $750 million available on our revolving credit facility. Which is net of amounts outstanding on our commercial paper program at quarter end. In addition, we anticipate free cash flow after the dividend to exceed $140 million this year. A more than 10% year over year increase. Pro forma for the settlement of all outstanding forward equity our net debt to recurring EBITDA was approximately 3.7 times as we continue to maintain a conservative and well positioned balance sheet. Excluding the impact of unsettled forward equity, our net debt to recurring EBITDA was 5.2x. Our net debt to enterprise value was approximately 29%, and our fixed charge coverage ratio which includes the preferred dividend, remains very healthy at 4.1x. Our only floating rate exposure remains short term borrowings. We continue to have no material debt maturities until 2028. Our balance sheet is extremely well positioned to fund our growth in the next year, as we have locked in an attractive cost of capital with an expansive opportunity set across all 3 external growth platforms. Our consistent and reliable earnings growth continues to support a growing and well covered dividend. During the second quarter, we increased our monthly cash dividend $0.267 per common share for April, May, and June. The monthly dividend equates to an annualized dividend of over $3.20 per share and represents a 4.3% year over year increase. Our dividend is very well covered with a payout ratio of 70% of AFFO per share for the second quarter. Subsequent to quarter end, we announced a monthly cash dividend of $0.267 per common share for July. The monthly dividend also equates to an annualized dividend of over $3.20 per share and represents a 4.3% year over year increase. With that, I would like to turn the call back over to Joel.
Joel N. Agree: Thanks, Peter. Operator, at this time, let's open it up for questions.
Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1 to raise your hand. To withdraw your question, press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the q and a roster. Your first question comes from the line of Michael Goldsmith with UBS. Your line is open. Please go ahead.
Michael Goldsmith: Good morning. Thanks for taking my question. You had robust acquisition volume in the first quarter and now again in the second quarter. Just with acquisition activity accelerating across the net lease sector, are you seeing any changes in the bidding behavior for the transactions you are pursuing, particularly maybe the larger portfolios or investment grade assets?
Joel N. Agree: Morning, Michael. No material changes we have seen. Again, we have seen cap rates have effectively been bound within a band for going on 3 years now. So we have not seen any material changes, any new entrants, to the competitive set. I think we will continue to as you would anticipate, and we have the first half of the 6 months of this year. So we do not anticipate any changes. We will see can either monitor, obviously, the 10-year treasury. With it being elevated to 4.7%, but no material changes.
Michael Goldsmith: Just maybe more specifically here, right, the quality of the acquisition improved over 73% came from an investment grade this quarter, up from 60% last quarter, cap rates remaining the same. So what is allowing you to acquire higher credit assets without sacrificing yield? Is that something that you expect to persist in are you just seeing are you seeing any broader change in transaction opportunities or across the net lease market?
Joel N. Agree: Well, I appreciate the question. it is due to our team, the depth of relationships we have, the asymmetrical opportunities that we pursue with our retail partners, I would remind everybody that we are not imputing any investment grade ratings here. Hobby Lobby, we continue to show as unrated. Alta, Publix, Boot Barn, other leading operators in their respective spaces. But I think what you are seeing is the results of the depth of our team, the strength of our team, and then what we talk about all the time, all 3 platforms creating value across the relationships for our the top retail partners in the country. Thank you very much. Good luck in the back half. Thanks, Michael.
Operator: Your next question comes from the line of Smedes Rose with Citi. Your line is open. Please go ahead.
Smedes Rose: Hi. Good morning. This is actually Nick Kerr on for Smedes this morning. Can you just walk us through the BP transaction? And some of the rationale behind that and what makes travel centers of interest for Agri?
Joel N. Agree: Sure, Nick. We have, the BP transaction was approximately $75 million. These are large format travel centers with BP North America credit guaranteeing them an a minus rated credit. I talked in the prepared remarks how we continue to pursue large format C-stores as well as off price. We put out white papers at both spaces. These are tremendous opportunities for us with great participants in both sectors, and we will continue to work across all 3 platforms to execute on opportunities to add into our portfolio. So again, these are large format BP travel centers typically interstates located on major interstates. Exit ramps that have long term leases with significant escalations.
Smedes Rose: Thanks for that. And then, the second 1 is on the ground leases, you guys have been leaning more into those. And so I guess could you just walk us through maybe what makes those attractive on a risk adjusted return perspective?
Joel N. Agree: Yeah. Look. I would not say we have been leaning in. Again, what we do is a function of what we are able to uncover through all of our all of our efforts, across our platforms. This quarter, our ground lease exposure was elevated at we have some significant ground lease exposure coming in the 0.510% of the overall portfolio. We think it is extremely unique. It is high credit. It is, again, the tenant has built the building at their own expense. We own the land. If they were to leave for any reason, it reverts to free for us. So just, again, to compare and contrast these to leaseholds, we own the fee simple interest in the land here. If the tenant were to leave, it is not on our books. The building, excuse me, is not on our books. We are not taking any depreciation. Then we will own the building free and clear, and we have demonstrated in the investor deck case studies where we have recaptured the building and that had significant markup of the rent. So it is my favorite risk adjusted returns in the overall net lease sector. We will continue to pursue opportunities across our 3 platforms, and we will continue to execute on. Awesome. Thanks so much. Thank you.
Operator: Your next question comes from the line of John with Wells Fargo. Your line is open. Please go ahead.
John: Hi. Good morning. First question is just on the DFP and development pipelines growing. Joel, is that from just more effort on your end and more emphasis on those investment lines? Or is there something about this environment that is creating more opportunity for you all?
Joel N. Agree: So, John, we have told everybody we are going to pick up our efforts going back 18 months. Approximately that we were going to pick up our efforts given our capabilities with our retail partners to both develop as well as use our developer funding platform, and we are seeing those efforts come to fruition. So 7-Elevens, number 7 and 8 have both commenced construction. Obviously, we are extremely active in the off price space. Getting outsized returns with superior credit. And most importantly, I think we are creating that full service value proposition of a true real estate investor in the net lease space, as I mentioned, not just a spread investor. And so we are all 3 platforms are firing on all cylinders. Most importantly, again, is that full service value proposition the biggest and best retailers in the country. And so our discussions are comprehensive when we talk about new stores, net new stores, or opportunities for retailers. We can develop them. We can buy them on a sale leaseback. We can acquire them from third parties. We can do orderly extensions. All different types of permutations of transactional activity. Which really separates us from our peers. Mhmm. Got it.
John: And then on the credit loss side, a very impressive performance this quarter. I am curious how this has impacted your guide and the expectations from here on out really. what is kind of on the watch list today? Where are concerns Are you seeing like the run rate of this portfolio continue to trend down in terms of what average credit and occupancy loss should look like?
Peter Coughenour: Sure, John. This is Peter. In terms of our credit loss guide, as you alluded to, we have brought down our assumption for credit loss in our guide to 25 basis points from prior range of 25 to 50 basis points Through the first half of the year, we had just 10 basis points of fully loaded credit and occupancy loss and only 6 basis points in the second quarter. So the portfolio has performed exceptionally well here in the first half of the year. Occupancy, as we noted, matches a company record at 99.8% As we think about the 25 basis points of credit loss in our guide, that is relatively aligned with our longer term average in terms of the credit loss that we have seen in our portfolio on an annual basis. But looking at the back half of the year, there is no material exposure or tenants that we have identified that would drive a significant acceleration in credit loss in Q3 or Q4 I think the watch list today is in a really good spot. it is lower than it was a year ago or 2 years ago. The biggest piece we really have is a few AMCs in the portfolio, but they were upgraded by S and P earlier this week. They have raised a good amount of equity capital here recently. There seems to be some backup box office momentum. This year, which is contributing to the upgrade. So I think the portfolio is in a really good spot as we look ahead to 2026 and beyond.
Operator: Your next question comes from the line of Jim Kamert with Evercore. Your line is open. Please go ahead.
Jim Kammert: Thank you. Good morning. You know, Joel, guys, I think you kind of answered it, but when you think about and you are achieving this partnership relationship with your retailers, you are not really seeking any sort of answer fee streams or anything like that. This is more about partnering and getting, you know, greater market share. it is not really an economic immediate kind of gain. I guess I am just trying to understand, you know, what you really extract from that.
Joel N. Agree: Correction. Where there is no ancillary fee streams that we are receiving or would frankly, anticipate receiving. I think, again, our ability to sit down with the largest retailers in the country, which we do quite frequently, and deploy all the myriad of capabilities that we have is wholly distinct. We they have private developers that are not multi billion dollar organizations that have a know, a $1.8 billion in liquidity. Who develop for them, who have financing challenges or right, capital stack challenges. there is public and private institutions that can acquire and then there is ADC that can do both. And so that differentiated strategy that we have been pursuing and is now accelerated across all 3 platforms is extremely appreciated, by our retail partners now. You pair that with an active asset management platform with our tremendous team here in asset management, who is on call and ready at any times given any challenges at a property, and we are we are we are we are a very unique partner for retailers. it is 1-on-1. Fair enough. Thank you. Thanks, Jim.
Operator: Your next question comes from the line of Spencer Glimcher with Green Street. Your line is open. Please go ahead.
Spencer Glimcher: Yeah. Thank you. So you guys commenced 5 projects in the quarter for $90 million I am just curious, as you continue to grow and expand the asset base, do you think that there is a path to larger format or tenant development that would let you to deploy more capital at 1 time?
Joel N. Agree: Yes, Spencer. Obviously, the 11 projects, these are turnkey developments. They average approximately 10 to $12 million ballpark per project. And then some of the off price stuff were more than open to doing 2 or more concepts. And so whether that is 2 TJX concepts, call it a home goods, and Marshall's, or whether at Burlington and Ross or Burlington and TJ and Bootbart or another tenant that fits in our sandbox, we are more than open to executing on those as well. And we will continue to k. Great.
Spencer Glimcher: And then just on the investment pipeline, as you look at the back half of the year, can you talk about what we should expect to see in terms of the composition of future acquisitions or capital deployment as it relates to your 3 different growth verticals?
Joel N. Agree: Yeah. In terms of asset composition, you will not see any surprises for us. We are not gonna go up the risk curve. We are not gonna do private equity backed sale leasebacks. Our sandbox is pretty fixed. Obviously, we monitor that. There are new entrants from time to time, or we will lay off an exposure. Our pipeline across all 3 platforms is extremely strong. it is growing. Really focused for sourcing acquisitions for Q4 right now, but we have a couple dozen projects through development in DFP going through the process as well here. So we will see a continued accelerated or through Q3 and Q4. Obviously, that is subject to diligence and timing, but there is no shortage of opportunities here for us right now. Okay. Great. Thanks so much. Thanks, Spencer.
Operator: Your next question comes from the line of Eric Borden with BMO. Your line is open. Please go ahead.
Eric Borden: Great. Thanks. Good morning, everyone. Know, ground leases were a large part of the portfolio in the investment volume this quarter. Just curious how large do you ultimately see the ground lease portfolio becoming as a percent of the percentage of the business?
Joel N. Agree: Hey, Eric. it is it is hovered around that double-digit 10%-11% mark now. For a number of quarters, actually, a number of years. Continue again, this is not a concerted effort to go out. it is not a separate channel for us. Often times, owners do not know if they have a ground lease or a turnkey lease. And so we continue to uncover those opportunities through our external activities. We will continue to execute that on them. I will tell you there is an elevated ground lease exposure in the back half of the year currently through some unique opportunities. But we will continue we will continue to find them at what rate, what goal. There really is no ultimate goal. Our ultimate goal here is to assemble the highest quality retail portfolio in the country that is growing at the tune of approximately 400 properties per year right now and continue to drive outsized AFFO to our shareholders while maintaining a fortress balance sheet. that is the ultimate goal To come in the form of a turnkey or a ground lease, we are pretty agnostic. Appreciate that.
Eric Borden: Last 1's for Peter just on the cadence of you know, the funding sources. You know, you have about $425 million of forward equity contracts maturing in October. And then in your prepared remarks, you also noted that there is some potential for some 10 year unsecured paper that you could potentially issue. You know, just kinda curious what you are thinking about in terms of the different funding services and the and the cadence of those sources throughout the back half of the year?
Peter Coughenour: Yeah. I mean, I think first and foremost, we are in a great position today with $1.9 billion of liquidity, including the $1.1 billion of outstanding forward equity. And so I think we have plenty of flexibility and optionality as we think about capital raising here in the back half of the year. As you mentioned, we do have about $425 million of forward equity. That currently matures in the back half of this year. We can always choose to extend those contracts if we see fit, but I do think there is a good chance subject to uses, capital alternatives, and other factors that those shares are settled in the back half of the year. And then to your point, we have $300 million of forward starting swaps in place, which has taken a lot of the base rate risk for a future 10 year debt issuance off of the table, and I think we will continue to evaluate the appropriate of an issuance throughout the back half of the year. But we are not in a rush here given all the capital that we have available to us and can afford to pick our spot.
Operator: Your next question comes from the line of Rob Stevenson with Huntington. Your line is open. Please go ahead.
Rob Stevenson: Good morning, guys. Joel, how should we be thinking about your expense growth over the next couple of years versus today? You have done a good job bringing the G and A down as a percent of revenues. You talked in your prepared remarks about a bunch of tech and AI initiatives. How much more of an opportunity is there for you guys to limit growth on the expense side as a triple net company?
Joel N. Agree: I think there is tremendous opportunity. We talked about it in the prepared remarks, but, also, I would even back up. We have built scale. And so we are approximately 100 team members here today. You combine that with lean based processes and with systems that are constantly improving there are tremendous opportunities for efficient Our COO, Nicole, would have really runs that side of this business and does a tremendous job. And so we are leveraging a lot of different tools, many created now in house from a systems perspective, We are getting better every single day, and we think we are going to continue to see a compression of g and a as a percent of revenues undoubtedly. And so there is tremendous efficiencies that this is approximately 100% organization that just did over 100 transactions again in a quarter. And we have got room and capacity. To continue to do more We will add select headcount. Our preferred method to add headcount to team members to this organization is bring them in young, train them, let them grow, let them flourish, and then watch them and support their professional development. But we are in a tremendous position right now, and I am excited about the initiatives we mentioned in the prepared remarks, including ARC 3.0 to come online later this year.
Rob Stevenson: Okay. And then Peter, just back to the capital standpoint, given the steeper yield curve, where is your most attractive source? And what is the pricing on a debt perspective for you guys if you did anything in the back half of the year?
Peter Coughenour: Yeah. Including the swaps that we have in place, the $300 million of forward certain swaps that contemplate a 10-year issuance, we could probably issue 10-year debt in the low fives today. I think given we have those swaps in place, that is taking a lot of the base rate risk off the table, And the fact that we have now fully drawn down our $350 million term loan a public unsecured offering is the most attractive longer term debt option as we look forward here. Okay. Thanks, guys. Appreciate the time.
Joel N. Agree: Have a good weekend. Thank you. You too, Rob.
Operator: Your next question comes from the line of Ronald Kamdem with Morgan Stanley. Your line is open. Please go ahead.
Ronald Kamdem: Great. Hey. Just wanted to follow-up on the longer term target of $250 million for development in DFP and so forth. Just can you just double click a little bit terms of is that existing tenants? How much of that is new tenants? Sort of what how you guys are going about scaling that opportunity? Thanks.
Joel N. Agree: Hey. Good morning, Rob. No new tenants that we do not currently own in the portfolio. New tenants that we will be developing for select certainly, that $250 million goal which we set about 18 months ago, was a 3-year goal. there is a 50-50 shot. We hit it this year subject to just diligence and timing. And so we are ahead of schedule, and then we will set a new goal But our development and our developer funding platform continue to ramp We have got a great team in place. We have got great relationships that to produce opportunities. We have new geographic territories that we are working on a preferred basis for retailers. And we continue to demonstrate our value proposition to retailers. So excited to continue to grow it. We have not had any new entrants to it. Would we look at it Most certainly, But I would not anticipate anybody that we do not currently own. The that is tough to find to the portfolio. 2.85 thousand properties today. Got it. James sense.
Ronald Kamdem: And then just coming back to the record sort of investments quarter, specifically on the acquisition front, I think we have just talk a little bit more about the competition and the cap rate trends. I think you said you have not seen sort of much changes so far but, you know, just sort of curious as, you know, rates have moved a little bit. If that is impacting anything. Thanks.
Joel N. Agree: The rate movement is obviously volatile. The most recent move has been near term. We have not seen any consequences. Or cascading impacts from that yet. We will see where the rate environment goes and what comes out in Truth Social later today or this weekend. But I would tell you that our space, we have not seen much change in terms of competition. We enjoy competition. It makes us better. It sharpens our edge. that is our theme for the year, sharpening our edge. And at the end of the day, we are confident that in any type of situation, if we want to get something, we can win. And so we will continue to execute. We will be selective. But when we choose to move, we move quickly and we move aggressively. Great. Thanks so much. Thanks, Ron.
Operator: There are no further questions at this time. I will now turn the call back to Joel N. Agree for closing remarks.
Joel N. Agree: Thank you, everybody, for joining us this morning. We look forward to seeing you in the near future, and enjoy the rest of your summer. Thank you.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.