Covered, with thin raises and mid-range leverage. The $0.2925 quarterly dividend takes 75% of Q2 2026 AFFO of $0.39 a share, and raised full-year AFFO guidance of $1.55–$1.57 implies the same ~75% on the $1.17 annualized dividend. Leverage is the caution at 6.4× net debt/annualized adjusted EBITDAre (5.9× pro forma for the August equity offering), and the lease base is long at 9.3 years with no tenant above ~4% of base rent. Raises are token: the quarterly rate was flat at $0.29 for eight quarters before a $0.0025 increase in 2026.
Key risk: A $645 million committed build-to-suit pipeline, including a $303 million single-tenant Colorado development, concentrates execution and funding risk in one project that is not expected to pay rent until March 2027.
Changes if: Reported leverage stays above 6× after the build-to-suit funding, or AFFO per share stalls while the pipeline is funded with new shares.
- ✓AFFO coverage check 75% of Q2 AFFO and ~75% of guided full-year AFFO are below the 80% pass line.
- !Leverage check 6.4× reported net debt/EBITDAre is in the 6–7× caution band; the 5.9× pro forma figure depends on the August offering and unsettled forwards.
- ✓Lease and concentration check WALE 9.3 years passes (>8); largest tenant under 4% of ABR passes (<10%), with the top 10 at ~21%.
- !Raise history check Annual totals $1.155 (2024) → $1.16 (2025) → $1.17 (2026) are raises in name only — under 1% in 2026 after eight flat quarters at $0.29 — graded as paused.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.