FCPT
#<UNK>
J.
Yes.
Yes, perfect.
Loud and clear.
Yes.
We see very ---+ so with the caveat that as long as the property is well located at the front of the mall, not at the back of the mall on a ring road, of which we have virtually nil.
An exception to that would be the Bahama Breeze on ---+ in the back of Sawgrass, but that's one of the best malls in the world.
With the caveats that the property is on the front of the mall, near a major ingress/egress point and has ample parking, okay, which is the vast preponderance of our properties, we see a surprisingly low correlation to the ---+ of the performance of the restaurants to the performance of the mall.
And so we do not think that when you just look at the store performance and you look at the traffic in-store, it's not something we're seeing a big correlation.
We've done ---+ no, no.
That's not true.
We've done the work to screen the properties and look at each individual property.
And occasionally, when we contemplate a sale, someone's interested in a property, of course, our preference is to look at properties next to weaker malls, especially when we're talking about cap rates in the low 5s.
But we have not seen the correlation presumed in your question, that properties next to beaker malls are performing poorly.
We're just not seeing it.
And I would also say that the vast preponderance of the stuff we buy has longer lease term.
And it's not clear to us that the malls are driving traffic to the restaurants.
And so as those malls get repurchased ---+ and I'm certainly sanguine about the positions of lower-quality malls in this country.
As those malls get repurchased, we actually think that in some cases, there might be upside.
No.
I think ---+ it's very similar from the get-go.
It's just a question of cost of capital, having the people to ---+ we've refined, I think, our process.
I think we certainly have a more sophisticated view on restaurants than we did on November 10, 2015.
But I think we had access to deal flow from the beginning.
I guess the one place I would say is just that we are working on a number of things that are repeat business with folks that we closed deals with last year, beginning of this year.
So maybe in that respect, but it was kind of good from the start, to be honest.
And I say when you're at a franchisee conference now for the second time, there's people you're meeting a second time.
And maybe it'll be more business.
But I agree with you, Bill, that in general, the pipeline and the sourcing looks very similar to what it did a year ago.
Let me add one comment to that, which is we closed some deals at the very end of last year and the very beginning of this year, that in one case, it was a deal had priced in June of '15, okay.
And so the interest rate environment was different.
And we could've repriced those deals, we could have walked from those deals, and we didn't.
The dollar amounts were small, so it made it a little easier.
But I think that, that helps.
I think the brokers and franchisees would give us a good recommendation internally.
So building that credibility does help.
And sometimes, that means making sure you're a consistent participant in the market.
Only that it did seem like, as we talked about on the last call, some folks were focused on this Obamacare tax and there was a presumption that, that would go away day 1.
And now we don't hear people talking about that anymore.
They know is uncertain and might take months, years to resolve, if ever.
Understanding there's a vote later today on Obamacare, so ---+ but I think people viewed that it might take time.
And so it really just seemed to be less of a focus.
So that's all we're seeing.
It's more there was this ---+ as Nick Pell at Gramercy said on this call, a bit of a election hangover.
And we seem to be on the other side of that today.
I don't feel ---+ no, I don't think so.
So if there's any more questions, we're getting up to our 20-minute average call time.
So any more questions, we'd love to hear it.
We'll take any more, but we'd love to wrap it up.
I know everyone's really busy.
Okay, terrific.
Thank you, everybody.
And just to repeat, I'm going to be in Chicago, Milwaukee, Minneapolis, Cincinnati, Salt Lake and Vegas over the next couple of weeks.
If there are shareholders that would love to get together, we certainly be more than happy to make time to meet with them.
So thank you, everyone, for being on the call.
Cheers.
