Spirit Realty Capital, Inc.

Realty Capital Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Pierre Revolve, SVP of Corporate Finance and Investor Relations. Thank you, and over to you, sir.

Thank you, Operator, and thank you, everyone, for joining us for SPIRIT's fourth quarter 2021 earnings call. Presenting on today's call will be President and Chief Executive Officer, Jackson Shea, and Chief Financial Officer, Michael Hughes, Ken Heimlich, Chief Investment Officer will be available for Q&A. Before we get started, I would like to remind everyone that this presentation contains forward-looking statements. Although we believe these forward-looking statements are based upon reasonable assumptions, they are subject to known and unknown risks and uncertainties that can cause actual results to differ materially from those currently anticipated due to a number of factors. I'd refer you to the safe harbor statements in our most recent filings with the SEC for a detailed discussion of the risk factors relating to these forward-looking statements. This presentation also contains certain non-GAAP measures. Reconciliation of non-GAAP financial measures to most directly comparable GAAP measures are included in the exhibits furnished to the SEC under Form 8K, which include our earnings release, supplemental information, and investor presentation. These materials are also available on the Investor Relations page of our website. For our prepared remarks, I'm now pleased to introduce Mr. Jackson Shea. Jackson?

Thank you, Pierre, and good morning, everyone. Over the last few earnings calls, I've talked about the quality of our portfolio, the strength of our balance sheet, and our ability to source transactions. Given what we've achieved in these three areas, I believe Spirit is well-positioned for success in 2022 and beyond. In the last four years, we've executed on our strategy to create a highly diversified portfolio with large sophisticated operators while significantly growing our industrial exposure. During this period, we sold or spun off 3.8 billion of assets, retained 4.1 billion of the original portfolio that fit our strategy and acquired 3.8 billion of new assets. This effort has resulted in a high quality stable portfolio with low volatility. At quarter end, our lost rent was virtually zero, and we had only four vacant properties. In addition, the strength of our diverse portfolio has been proven out during the COVID pandemic, which caused minimal disruption in our rental income. In fact, the majority of our tenants are performing better today with improved profitability, and credit profiles. To help illustrate the transformation of our portfolio and its resulting impact on performance, we've included several pages in our current investor deck that provide additional disclosure, which I hope you will review and find informative. Our balance sheet has also continued to strengthen, allowing us to transition away from ABS and convertible debt secure a triple B rating from all three major rating agencies and become a serial investment rate bond issuer. Today, our portfolio is almost completely unsecured and our debt maturities are well laddered and long dated. In addition, our low dividend payout ratio allows us to propel earnings growth by reinvesting more free cash flow while enabling us to grow the dividend consistently and sustainably over time. Finally, with the completion of our recent follow-on equity offering, we remained extremely well capitalized to execute on our growing acquisition pipeline. Regarding acquisition sourcing, the goals we laid out for our acquisition platform have all been achieved, and we are doing exactly what we said we would do. We have the team and processes in place to source and close transactions, which will allow us to drive strong, consistent earnings growth. We've built out integrated acquisitions and asset management teams, expanding the reach and allowing for concerted sourcing efforts with a focus on relationship development with our existing tenant base, owners, and new partners. In addition, Our extensive underwriting capabilities focused on evaluating industry relevance, tenant credit strength, and key real estate attributes allows us to allocate capital across a wider opportunity set, which we believe delivers superior diversification and better risk-adjusted returns. Our fourth quarter investment activity is emblematic of what our platform can deliver. as we've deployed 487.9 million in capital, acquiring 92 properties across 28 transactions with a mix of 60% retail and 40% industrial. Most notably, 75% of these transactions were sourced through existing relationships, which is well above the target we laid out at our investor day in 2019. We're also off to a strong start in 2022 with 179 million of acquisitions completed year to date through 13 transactions. And with the strongest forward pipeline in my history at Spirit, we believe our acquisition capability has hit a stride and we're seeing the benefits of the relationships we've built with our counterparts. Our teams are in sync and growing, and we are leveraging the many technology tools and processes we have developed. Finally, I want to highlight that the noise is behind us. Instead of completing structural changes or dealing with the impact of COVID, we're entering a truly clean year with a solid portfolio, strong balance sheet, and best in class team in place. This will be the first year for our team to showcase what this platform can do, and I expect great things to come. With that, I will turn the call over to Mike. Mike?