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  "docSlug": "75aa3b2bd0fb",
  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-07-01 00:00:00",
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  "notes": "The slide highlights a discrepancy between FND's increasing lease duration and its relatively stable discount rate compared to peers.",
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      "kind": "callout",
      "text": "Home Depot is an “A” credit vs. FND’s BB credit. Despite FND increasing its lease duration, why has its discount rate increased by 20bps less than Home Depot’s?",
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      "text": "Average Lease Term: 12",
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      "kind": "paragraph",
      "text": "Spruce Point observes that that average duration of FND's leases has increased by two years since 2020 while everyone else in the industry appears to be shrinking or maintaining the average duration of the leases.",
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      "text": "Source: Bloomberg and Spruce Point analysis",
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      "kind": "table",
      "text": "Comparison table of Avg. Lease Term and Discount Rate for Lowe's, Home Depot, Lumber Liq., Tile Shop, and Floor & Decor from 2020-2024.",
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      "kind": "title",
      "text": "FND Is The Only Company Among Its Closest Peers That Is Expanding Lease Tenor",
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      "evidence": "The slide uses a table to compare FND's lease metrics against industry peers to highlight an anomaly.",
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      "beatName": "The Struggle",
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      "evidence": "The document presents a detailed analysis of FND's struggles and challenges",
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      "parentBeatName": "Development",
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      "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)",
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