====  =======          =========    ========= 
Annualized 
 adjusted 
 EBITDAre                  41,376             41,688       39,464 
                    ====  =======          =========    ========= 
 
 
(1)  Reflects an adjustment to exclude non-cash stock-based compensation 
     expense. 
(2)  Reflects an adjustment to exclude non-recurring expenses including IPO 
     costs and lease termination fees. 
 
 
                                                 September 30, 
                                           -------------------------- 
                                            Pro Forma     Historical 
(in thousands)                                2024           2024 
                                           -----------   ------------ 
Debt 
  New Delayed Draw Term Loan               $   200,000   $         -- 
  New Revolving Credit Facility                 53,499             -- 
  ABS Notes                                         --        253,499 
  Revolving Credit Facility                         --        150,000 
  Term Loan Credit Facility                         --         15,967 
                                               -------       -------- 
Gross Debt                                     253,499        419,466 
Cash, cash equivalents and restricted 
 cash                                          (93,261)        (9,895) 
                                               -------       -------- 
Net Debt                                   $   160,238   $    409,571 
 
Leverage Ratios: 
Net Debt to Annualized EBITDAre                    4.0            9.5 
                                               =======       ======== 
Net Debt to Annualized Adjusted EBITDAre           3.9            9.8 
                                               =======       ======== 
 

Net Debt is a non-GAAP financial measure. We define Net Debt as our total debt less cash, cash equivalents and restricted cash. The ratios of Net Debt to EBITDAre and Net Debt to Annualized Adjusted EBITDAre represent Net Debt as of the end of the applicable period divided by EBITDAre or Annualized Adjusted EBITDAre for the period, respectively. We believe that these ratios are useful to investors and analysts because they provide information about Gross Debt less cash and cash equivalents, which could be useful to repay debt, compared to our performance as measured using EBITDAre and Annualized Adjusted EBITDAre.

We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our leverage that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. In 2017, Nareit issued a white paper recommending that companies that report EBITDA also report EBITDAre in financial reports. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA (as defined above) excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

We compute adjusted EBITDAre as EBITDAre for the applicable quarter, as adjusted to (i) reflect all investment and disposition activity that took place during the applicable quarter as if each transaction had been completed on the first day of the quarter, (ii) exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, (iii) eliminate the impact of lease termination fees from certain of our tenants, and (iv) exclude non-cash stock-based compensation expense.

Annualized adjusted EBITDAre is calculated by multiplying adjusted EBITDAre for the applicable quarter by four, which we believe provides a meaningful estimate of our current run rate for all of our investments as of the end of the most recently completed quarter given the contractual nature of our long term net leases. You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our annualized adjusted EBITDAre. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre.

Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

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November 13, 2024 17:08 ET (22:08 GMT)