What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2024-02-14 compared with 2023-02-16 · 46 added, 47 removed, 163 unchanged (36% of the section changed)

2 unchanged sentences

Our 374 tenants operate 588 different concepts in 16 industries across 48 states.

None of our tenants represented more than 3.4% of our annualized base rent at December 31, 2022 and our top ten largest tenants represented 18.0% of our annualized base rent as of that date.

None of our tenants represented more than 3.8% of our portfolio at December 31, 2023 and our top ten largest tenants represented 18.1% of our annualized base rent as of that date.

Diversification by Tenant

7 unchanged sentences

CNP Holdings, LLC Chicken N Pickle 8 8,346 2.3 %

Captain D's, LLC Captain D's 75 5,353 1.8 %

Whitewater Holding Company, LLC WhiteWater Express Car Wash 16 4,953 1.7 %

Cadence Education, LLC Various 23 4,941 1.7 %

Busy Bees US Holdings Limited Various 31 6,943 1.9 %

New Potato Creek Holdings, LLC Tidal Wave Auto Spa 16 5,943 1.6 %

Mdsfest, Inc.

1 unchanged sentence

The Track Holdings, LLC Five Star 10 5,695 1.6 %

Mammoth Holdings, LLC.

Captain D's, LLC Captain D's 77 5,627 1.5 %

SB Pep Holdco, LLC (3)

Various 12 4,650 1.3 %

Premier Early Childhood Education Partners LLC Various 26 4,619 1.3 %

Car Wash Partners, Inc.

Mister Car Wash 13 4,566 1.3 %

Bowl New England, Inc.

Spare Time 6 4,444 1.5 %

Top 10 Subtotal 247 66,205 18.1 %

3 unchanged sentences

(1) Represents tenant or guarantor.

(2) Excludes two vacant properties.

As of December 31, 2022, our five largest tenants, who contributed 10.3% of our annualized base rent, had a rent coverage ratio of 5.8x, and our ten largest tenants, who contributed 18.0% of our annualized base rent, had a rent coverage ratio of 4.7x.

As of December 31, 2022, 94.9% of our leases (based on annualized base rent) were triple-net, and the tenant is typically responsible for all improvements and is contractually obligated to pay all operating expenses, such as maintenance, insurance, utility and tax expense, related to the leased property.

Due to the triple-

net structure of our leases, we do not expect to incur significant capital expenditures relating to our triple-net leased properties, and the potential impact of inflation on our operating expenses is reduced.

(2) Excludes three vacant properties.

(3) Includes properties leased to a subsidiary of Accelerated Brands.

As of December 31, 2023, our five largest tenants, who contributed 11.2% of our annualized base rent, had a rent coverage ratio of 7.3x while our ten largest tenants, who contributed 18.1% of our annualized base rent, had a rent coverage ratio of 5.4x.

As of December 31, 2023, 95.9% of our leases (based on annualized base rent) were triple-net, where the tenant is typically responsible for all improvements and is contractually obligated to pay all operating expenses, such as maintenance, insurance, utility and tax expense, related to the leased property.

Due to the triple-net structure of our leases, we do not expect to incur significant capital expenditures relating to our triple-net leased properties, and the potential impact of inflation on our operating expenses is reduced.

Diversification by Concept

Our tenants operate their businesses through 538 concepts (i.e., generally brands).

Our tenants operate their businesses across 588 concepts (i.e., generally brands).

The following table provides information about the top ten concepts in our portfolio as of December 31, 2023 (dollars in thousands):

5 unchanged sentences

EquipmentShare Service $ 14,039 3.8 % 48 823,701

Chicken N Pickle Experience 8,346 2.3 % 8 279,483

Crunch Fitness Experience 8,028 2.2 % 19 675,084

Captain D's Service 6,707 1.8 % 88 228,470

Chicken N Pickle Service 5,546 1.9 % 6 202,057

WhiteWater Express Car Wash Service 4,953 1.7 % 16 77,746

Tidal Wave Auto Spa Service 5,943 1.6 % 16 30,497

Festival Foods Retail 5,778 1.6 % 6 465,660

Five Star Experience 4,717 1.3 % 9 65,455

Mister Car Wash Service 4,566 1.3 % 13 54,621

Spare Time Experience 4,443 1.5 % 6 272,979

The Nest Schools Service 4,146 1.4 % 17 217,282

Zaxby's Service 4,062 1.4 % 22 76,790

Crunch Fitness Experience 4,022 1.4 % 10 348,072

Spare Time Entertainment Experience 4,521 1.2 % 6 272,979

John Deere Service 4,259 1.2 % 22 395,014

Top 10 Subtotal 66,904 18.3 % 235 3,290,964

2 unchanged sentences

______________________________________

(1) Excludes two vacant properties.

(1) Excludes three vacant properties.

Diversification by Industry

12 unchanged sentences

Casual Dining Service 25,506 7.0 % 115 817,546 31.20

Convenience Stores Service 14,664 4.9 % 131 491,449 30.25

Equipment Rental and Sales Service 18,572 5.1 % 72 1,252,458 14.83

Convenience Stores Service 18,415 5.0 % 145 578,272 33.09

Other Services Service 8,634 2.4 % 46 600,191 14.39

Pet Care Services Service 5,142 1.7 % 46 371,069 14.44

Family Dining Service 6,835 1.9 % 38 249,173 27.43

Pet Care Services Service 5,904 1.6 % 38 260,429 23.92

Service Subtotal 289,016 79.2 % 1,681 10,865,609 26.73

11 unchanged sentences

____________________________________________________

(1) Excludes two vacant properties.

(1) Excludes three vacant properties.

(2) Excludes properties with no annualized base rent and properties under construction.

1 unchanged sentence

Diversification by Geography

Our 1,653 property locations are spread across 48 states.

Our 1,873 properties locations are located in 48 states.

The following table details the geographical locations of our properties as of December 31, 2023 (dollars in thousands):

5 unchanged sentences

Wisconsin 19,048 5.2 % 72 1,011,950

North Carolina 11,253 3.8 % 57 641,085

Missouri 13,274 3.6 % 69 849,260

Michigan 9,363 3.2 % 60 950,862

North Carolina 12,394 3.4 % 63 642,318

Arizona 11,874 3.3 % 52 562,798

Oklahoma 10,849 3.0 % 59 831,399

New Jersey 8,337 2.8 % 27 215,705

Michigan 10,400 2.9 % 60 1,002,532

Alabama 9,791 2.7 % 56 514,795

Tennessee 7,998 2.7 % 50 344,772

Minnesota 7,261 2.4 % 36 496,939

New Jersey 9,296 2.6 % 29 373,874

New York 8,749 2.4 % 58 304,086

Arkansas 8,675 2.4 % 58 480,277

Virginia 8,662 2.4 % 29 321,102

Illinois 8,659 2.4 % 51 403,037

New York 6,555 2.2 % 44 223,324

Minnesota 8,633 2.4 % 40 551,746

Tennessee 8,592 2.4 % 51 349,388

South Carolina 8,310 2.3 % 50 456,252

Pennsylvania 7,402 2.0 % 39 391,321

Virginia 6,336 2.1 % 24 262,428

Massachusetts 5,861 2.0 % 29 406,159

Indiana 7,140 2.0 % 49 365,594

Mississippi 6,718 1.8 % 53 316,851

Connecticut 6,513 1.8 % 20 508,568

Colorado 6,202 1.7 % 28 319,000

South Carolina 5,645 1.9 % 34 378,796

Massachusetts 6,119 1.7 % 31 431,281

Iowa 5,297 1.5 % 32 363,483

Mississippi 4,755 1.6 % 41 271,991

Indiana 4,700 1.6 % 38 303,066

Nevada 4,385 1.2 % 13 104,860

Kentucky 4,234 1.2 % 38 234,363

Kansas 3,918 1.1 % 17 162,837

Connecticut 3,449 1.2 % 13 217,985

New Mexico 3,380 1.1 % 22 130,210

Nevada 3,115 1.1 % 10 90,620

California 3,647 1.0 % 17 125,741

Louisiana 3,624 1.0 % 19 133,848

New Hampshire 3,499 1.0 % 15 255,981

New Mexico 3,359 0.9 % 21 128,455

South Dakota 2,684 0.7 % 9 130,152

Louisiana 2,368 0.8 % 13 124,161

Maryland 2,276 0.8 % 9 79,028

Washington 2,382 0.7 % 12 99,374

Maryland 2,379 0.7 % 9 75,410

West Virginia 1,655 0.5 % 24 66,746

Oregon 1,240 0.4 % 8 127,673

Maine 1,002 0.3 % 3 56,981

Utah 956 0.3 % 2 67,659

Nebraska 911 0.3 % 8 32,892

Maine 509 0.2 % 1 32,115

Wyoming 444 0.2 % 2 14,001

Idaho 644 0.2 % 2 41,146

Alaska 246 0.1 % 2 6,630

Vermont 219 0.1 % 2 30,508

North Dakota 559 0.2 % 4 62,270

Rhode Island 466 0.1 % 2 22,865

Wyoming 453 0.1 % 2 14,001

Oregon 403 0.1 % 7 119,584

Alaska 250 0.1 % 2 6,630

Vermont 223 0.1 % 1 30,508

Montana 179 0.1 % 1 —

31 unchanged sentences

_______________________________________________________________

(1) Expiration year of leases in place as of December 31, 2022, excluding any tenant option renewal periods that have not been exercised.

(2) Excludes two vacant properties.

(1) Expiration year of contracts in place as of December 31, 2023, excluding any tenant option renewal periods that have not been exercised.

(2) Excludes three vacant properties.

(3) Weighted by annualized base rent.

30 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties