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No. of Recommendations: 1
The company announced Q1, beat the guidance and raised full year guidance. On Q1 2021 bad debt is 2.3% versus 0.4% on Q1 2020. So they are expecting some improvement in the second half and get < 0.5% in later part of 2022. That's anywhere between 1% to 2% drop to bottom line. Also the company received investment grade, which is going to reduce their interest cost. Now that is also going to allow them to have better economics on future acquisitions. Lastly, currently the company is not making much in late fees' which will also bounce back in time

The company is expecting to acquisition run rate, which along with some rent increase, increase in late fees, reduction in interest rates, and reduction in bad debt should provide growth in FFO for the next 2 to 3 years.

On the other hand, with their updated guidance, I am expecting the company to do $1.4 FFO and at $35 share price that is 25x FFO. How much more run way is there?

Full earnings release here...
https://s23.q4cdn.com/385734574/files/doc_financials/2021/q1...
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