Brandywine Realty Trust (BDN) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Brandywine Realty Trust Third Quarter 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Brandywine Realty Trust 2023 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Jerry Sweeney, President and CEO. Please go ahead.

現在我想將會議交給今天的發言人、總裁兼執行長 Jerry Sweeney。請繼續。

Liz, thank you very much. Good morning, everyone, and thank you for participating in our third quarter 2023 earnings call. On today's call with me today is George Johnstone, our Executive Vice President of Operations; Dan Palazzo, Senior Vice President and Chief Accounting Officer; and Tom Wirth, our Executive Vice President and Chief Financial Officer.

莉茲，非常感謝你。大家早安，感謝您參加我們的 2023 年第三季財報電話會議。今天與我一起參加電話會議的是我們的營運執行副總裁喬治·約翰斯通 (George Johnstone)。 Dan Palazzo，資深副總裁兼首席會計官；以及我們的執行副總裁兼財務長 Tom Wirth。

Prior to beginning, certain information discussed during our call may constitute forward-looking statements within the meaning of the federal securities law. Although we believe estimates reflected in these statements are based on reasonable assumptions, we cannot give assurances that the anticipated results will be achieved. For further information on factors that could impact our anticipated results, please reference our press release as well as our most recent annual and quarterly reports that we file with the SEC.

在開始之前，我們在電話會議中討論的某些資訊可能構成聯邦證券法含義內的前瞻性陳述。儘管我們相信這些陳述中反映的估計是基於合理的假設，但我們不能保證能夠實現預期結果。有關可能影響我們預期結果的因素的更多信息，請參考我們的新聞稿以及我們向 SEC 提交的最新年度和季度報告。

So to start off this morning during our prepared comments, as we always do, will review quarterly results and provide an update on our 2023 business plan. Tom will then review third quarter financial results and frame out the remaining key assumptions to drive our '23 guidance. After that, Tom, Dan, George and I are available for any questions.

因此，今天早上我們將一如既往地在準備好的評論中回顧季度業績並提供 2023 年業務計劃的最新資訊。然後，Tom 將回顧第三季的財務業績，並製定其餘的關鍵假設，以推動我們的 23 年指引。之後，湯姆、丹、喬治和我可以回答任何問題。

So the third quarter saw additional progress on our '23 business plan. Our combined leasing activity for the quarter totaled 624,000 square feet. During the quarter, we executed 351,000 square feet of leases including 118,000 square feet of new leasing within our wholly owned portfolio. Our joint venture portfolio achieved [273,000] square feet of lease executions including 108,000 square feet of new leasing activity.

因此，第三季我們的 23 業務計劃取得了更多進展。本季我們的綜合租賃活動面積總計 624,000 平方英尺。本季度，我們執行了 351,000 平方英尺的租賃，其中包括我們全資投資組合中 118,000 平方英尺的新租賃。我們的合資企業投資組合執行了 [273,000] 平方英尺的租賃，其中包括 108,000 平方英尺的新租賃活動。

Also, while the third quarter mark-to-market results were below our annual targets, based on executed leases, we expect our full year mark-to-market range to be between 11% to 13% on a GAAP basis and 4% to 6% on a cash basis. As I noted in last quarter's call, our mark-to-market will vary by region, with Philadelphia CBD, University City and the Pennsylvania suburbs leading the way, we certainly continue to expect that given current market conditions, our mark-to-market in Austin for the balance of the year will remain negative on both a cash and GAAP basis.

此外，雖然第三季以市價計算的業績低於我們的年度目標，但根據已執行的租賃，我們預計全年按市價計算的範圍按GAAP 計算將在11% 至13% 之間，按GAAP 計算將在 4% 至4% 之間。6% 以現金支付。正如我在上個季度的電話會議中指出的那樣，我們的按市價計算將因地區而異，其中費城中央商務區、大學城和賓夕法尼亞州郊區處於領先地位，我們當然繼續預計，鑑於當前的市場狀況，我們的以市價計算奧斯汀今年剩餘時間的現金和公認會計原則將保持負值。

As we did anticipate in our business plan, we had negative absorption this quarter, primarily related to tenants moving out in our Pennsylvania Plymouth Meeting portfolio, a tenant in Austin, Texas, and a 42,000 square foot firm vacating the lower bank here at Cira Centre. And at Cira, as I'll touch on later, this space is part of our life science conversion within that lower bank and work is already underway.

正如我們在業務計劃中所預期的那樣，本季度我們的吸收量為負，主要與賓夕法尼亞州普利茅斯會議投資組合中的租戶搬出、德克薩斯州奧斯汀的租戶以及一家42,000 平方英尺的公司騰出Cira 中心下岸有關。 。在 Cira，正如我稍後會談到的，這個空間是我們下層銀行生命科學轉型的一部分，工作已經在進行中。

Overall, we are 88.3% occupied and 90.4% leased based on 256,000 square feet for lease commitments. As a result of delayed occupancy on executed deals, primarily due to slower build-out approvals and frankly, the slower pace of leasing in Austin, we are reducing our year-end occupancy range from 90% to 91% down to 89% to 90%. We are, however, based on activity, maintaining our lease percentage range of 91% to 92%.

總體而言，基於 256,000 平方英尺的租賃承諾，我們的入住率為 88.3%，出租率為 90.4%。由於已執行交易的入住率延遲（主要是由於擴建審批速度較慢，而且坦白說，奧斯汀的租賃速度較慢），我們將年末入住率範圍從 90% 至 91% 降低至 89% 至 90% %。然而，根據活動情況，我們的租賃百分比範圍維持在 91% 至 92%。

Our core markets of Philadelphia CBD, University City and Pennsylvania suburbs in Austin, which comprise 92% of the company's NOI is 90% occupied and 90% -- with 92% leased. We did add a new page in our supplemental pack Page 4, which highlights how well the majority of our portfolio occupancy is. We did highlight on that page, 8 of our wholly owned properties comprised 50% of the company's vacancy, number of these properties are either being marketed for sale or undergoing analysis for conversion opportunities. But those properties do affect our occupancy numbers by 450 basis points and plans are underway to address each of these projects ranging from increased leasing outreach programs as well as what I just mentioned sale and conversion opportunities.

我們的核心市場包括費城中央商務區、大學城和賓州奧斯汀郊區，占公司 NOI 的 92%，其中 90% 已被佔用，90% 已出租，其中 92% 已出租。我們確實在補充包第 4 頁中新增了一個新頁面，突顯了我們大部分投資組合的入住情況。我們確實在該頁面上強調，我們全資擁有的 8 處房產占公司空置率的 50%，其中許多房產要么正在出售，要么正在進行轉換機會分析。但這些房產確實影響了我們的入住率 450 個基點，並且我們正在製定計劃來解決每個項目，包括增加租賃推廣計劃以及我剛才提到的銷售和轉換機會。

Both GAAP and same-store outperformed our business plan ranges during the quarter, and we are increasing both ranges for the year. The GAAP same-store range has increased from 0% to 2%, 2% to 3%, primarily due to approximately 500,000 square feet of positive blend and extend leases that were done.

本季度的 GAAP 和同店業績都超出了我們的業務計劃範圍，今年我們將增加這兩個範圍。 GAAP 同店範圍從 0% 增加到 2%，從 2% 增加到 3%，主要是由於約 500,000 平方英尺的積極混合和延長租賃已完成。

Notably, none of these blends and extends involved a contraction by the renewing tenant. You'll note that this activity brought down our core rollover exposure, which I'll touch on in a few moments.

值得注意的是，這些混合和擴展都沒有涉及續租租戶的收縮。您會注意到，這項活動降低了我們的核心展期風險，我稍後會談到這一點。

Cash same stores increasing from 2.5% to 4.5%, which was the previous range to 5% to 6%, primarily due to proactive cost reduction initiatives resulting in lower utility, janitorial costs, reduced real estate taxes, all net of tenant reimbursements as well as a continued burn-off of some free rent.

現金同店率從 2.5% 增加至 4.5%，之前的範圍為 5% 至 6%，這主要是由於積極主動的成本削減舉措導致公用事業、清潔成本降低，房地產稅減少，所有這些都扣除租戶報銷作為一些免費租金的持續消耗。

Third quarter capital costs were in line with our business plan range. However, based on year-to-date results and projected fourth quarter activity, we are reducing our leasing capital ratio from 11% to 13% down to 9% to 10%. So as evidenced by our positive mark-to-market results, this lower capital ratio, we will continue to generate positive net effect of rents in most of our markets.

第三季資本成本符合我們的業務計畫範圍。然而，根據今年迄今的業績和預計的第四季度活動，我們將租賃資本比率從 11% 至 13% 降低至 9% 至 10%。因此，正如我們積極的按市值計價結果所證明的那樣，較低的資本比率，我們將繼續在大多數市場產生積極的租金淨效應。

Tenant retention for the quarter was 44%, again, in line with our plan, but below the bottom end of our full year forecast was driven primarily by those vacates I previously mentioned, but we are maintaining our existing range of 49% to 51% based on forecasted Q4 activity.

本季的租戶保留率為44%，再次符合我們的計劃，但低於我們全年預測的下限，這主要是由我之前提到的那些空置造成的，但我們維持現有的49 % 至51% 的範圍是基於預測的第四季活動。

Our spec revenue range remains in the $17 million to $19 million range, about 94% done at the midpoint. We expect to be able to reach the midpoint of that range by the end of the year.

我們的規格收入範圍仍然在 1700 萬美元到 1900 萬美元之間，大約 94% 完成在中點。我們預計到今年年底能夠達到該範圍的中點。

Our operating portfolio is solid with a stable outlook. We have reduced our forward rollover exposure through '24 to an average of 6.3% and through 2026 to an average annual rate of 6.7%. We do feel very good about our portfolio quality, our management services delivery platform and our submarket positioning. We do believe the quality curve thesis remains intact, as evidenced by the overall pickup in leasing activity that we continue to see.

我們的經營組合穩健，前景穩定。我們已將 2024 年的遠期展期風險敞口平均降低至 6.3%，並於 2026 年將年均利率降低至 6.7%。我們確實對我們的投資組合品質、我們的管理服務交付平台和我們的子市場定位感到非常滿意。我們確實相信品質曲線理論仍然完好無損，我們繼續看到的租賃活動的整體回升就證明了這一點。

Additionally, rather, overall tour velocity, which is really a starting point for our leasing cycle continues to improve. So just several points to amplify. The increase in physical tour volume has been very encouraging. Our third quarter physical tours exceeded second quarter tour volume by 29%, but also exceeded our trailing 4 quarter average by 69%, and our tour activity level remains above pre-pandemic levels by 18%. So good traction through the entire portfolio.

此外，整體旅遊速度（這實際上是我們租賃週期的起點）不斷提高。所以只需要強調幾點。實體旅遊量的成長非常令人鼓舞。我們第三季的實體旅遊量超過第二季的旅遊量 29%，但也超過了過去 4 個季度的平均 69%，我們的旅遊活動水準仍高於大流行前的 18%。整個產品組合都具有良好的吸引力。

On a wholly owned basis, during the third quarter, 62,000 square feet of new leases or 53% of all new leasing activity were a result of this slight quality thesis. Tenant expansions continue to outweigh tenant contractions during the quarter. And the market recovery does continue, albeit at a slower pace than we would like. But our total leasing pipeline is up 20% for the second consecutive quarter and stands at 3.8 million square feet. That pipeline is broken down between 1.7 million square feet in our wholly owned portfolio, which is up from last quarter and stability within our development project portfolio.

在全資擁有的基礎上，第三季有 62,000 平方英尺的新租賃，即所有新租賃活動的 53%，都是由於這種輕微的品質問題造成的。本季租戶擴張持續超過租戶收縮。市場復甦確實在繼續，儘管速度比我們希望的要慢。但我們的租賃總量連續第二季成長了 20%，達到 380 萬平方英尺。該管道在我們全資擁有的投資組合中細分為 170 萬平方英尺，比上季度有所增加，並且我們的開發項目組合保持穩定。

The 1.7 million square feet existing portfolio pipeline includes approximately 100,000 square feet in advanced stages of lease negotiations. Also 46% and of our operating portfolio, new deal pipeline or prospects looking to move up the quality curve, that's up from 31% last quarter.

170 萬平方英尺的現有投資組合包括約 10 萬平方英尺處於租賃談判後期階段的面積。此外，我們的營運投資組合、新交易管道或潛在客戶中，有 46% 的人希望提升品質曲線，這一比例高於上季的 31%。

Turning to the balance sheet. As expected, our second quarter net debt-to-EBITDA ratio decreased from to 7.4% from 7.6%, primarily from increased EBITDA, offset by increased development and redevelopment costs. We anticipate this ratio to decrease to our business plan ranges with sales in the fourth quarter and achieving our target of reduction in joint venture debt attribution.

轉向資產負債表。正如預期的那樣，我們第二季度的淨債務與 EBITDA 比率從 7.6% 下降至 7.4%，這主要是由於 EBITDA 增加，但被開發和再開發成本增加所抵消。我們預計隨著第四季度的銷售，這一比率將下降到我們的業務計劃範圍內，並實現我們減少合資企業債務歸屬的目標。

As we noted in the SIP, this ratio is higher due to development spend and debt attribution from our joint ventures. If both of these items were removed from our 7.4 metric, our leverage would be a full turn lower at 6.44x. To amplify this point, our core EBITDA metric, which is our operating portfolio, excluding joint venture debt attribution and development and redevelopment spend ended the quarter within our range at 6.3x.

正如我們在 SIP 中指出的，由於我們合資企業的開發支出和債務歸屬，這一比率較高。如果這兩項都從我們的 7.4 指標中刪除，我們的槓桿率將全面降低至 6.44 倍。為了強調這一點，我們的核心 EBITDA 指標（即我們的營運投資組合），不包括合資企業債務歸屬以及開發和再開發支出，本季結束時為 6.3 倍，在我們的範圍內。

On the liquidity front, we continue to make progress on our asset sales and financing. We have a short-term extension with the lender on a nonrecourse leasehold mortgage in our MAP joint venture through December '23, December 1st of '23. The current outstanding balance of that loan is $181 million. The extension is providing additional time to finalize a recapitalization strategy with both the leasehold lender and the fee owner and discussions to date have been very constructive.

在流動性方面，我們在資產銷售和融資方面繼續取得進展。我們與貸方就我們 MAP 合資企業的無追索權租賃抵押貸款進行了短期延期，有效期至 2023 年 12 月 1 日。該貸款目前的未償餘額為 1.81 億美元。此次延期為與租賃貸款人和費用所有者最終確定資本重組策略提供了更多時間，迄今為止的討論非常有建設性。

In August, as we noted in the release, we completed a $50 million construction loan financing on our 155 King of Prussia Road property. That loan bears interest at 250 basis points over SOFR. In August, we also completed the sale of our Barton -- our Three Barton Skyway project in Austin, Texas, and sale price was $53.3 million, or $307 per square foot, which represented a cap rate in the high 6% range.

正如我們在新聞稿中指出的，8 月份，我們為普魯士國王路 155 號房產完成了 5000 萬美元的建築貸款融資。該貸款的利息比 SOFR 高出 250 個基點。 8 月，我們還完成了 Barton 的出售——位於德克薩斯州奧斯汀的 Three Barton Skyway 項目，售價為 5330 萬美元，每平方英尺 307 美元，上限利率高達 6%。

Other than the recently financed Commerce Square joint venture, on our other operating JVs, we have $68 million invested with $624 million of nonrecourse mortgages maturing in '24 before any extension options. $113 million of that debt is attributed to Brandywine. Our ownership stake ranges between 15% to 20%. We are working closely with all of our partners and lenders on loan extensions recapitalization efforts and would expect to report additional progress in the coming quarters.

除了最近融資的 Commerce Square 合資企業之外，我們在其他營運中的合資企業中投資了 6,800 萬美元，其中 6.24 億美元的無追索權抵押貸款將於 24 年到期，沒有任何延期選擇。其中 1.13 億美元的債務屬於 Brandywine。我們的持股比例在 15% 到 20% 之間。我們正在與所有合作夥伴和貸方密切合作，進行貸款延期和資本重組工作，並預計在未來幾季報告更多進展。

As Tom will touch on, our consolidated debt is 93% fixed at a 5.2% rate, and we have no consolidated debt maturities into our 2024 $350 million bond which Tom will also amplify our strategy there. At quarter end, there is no outstanding balance on our $600 million unsecured line of credit and we have approximately $48 million of unrestricted cash on hand.

正如湯姆將談到的，我們的合併債務 93% 固定在 5.2% 的利率上，而且我們的 2024 年 3.5 億美元債券沒有合併債務到期日，湯姆也將擴大我們的策略。截至季末，我們 6 億美元的無擔保信貸額度沒有未清餘額，我們手頭上有大約 4,800 萬美元的無限現金。

As noted on Page 13 in our SIP, based on remaining asset sales, development spend projections, our business plan projects that we will have full availability on our line of credit at the year-end '23.

正如我們的 SIP 第 13 頁所述，根據剩餘資產銷售、開發支出預測，我們的業務計劃預計我們將在 23 年底獲得完全可用的信貸額度。

In September, our Board of trustees did decrease our quarterly dividend by $4 a share from $0.19 to $0.15 a share. And while our cash flow numbers are solid and our CAD payout ratio was strong and remains well covered, and we continue to forecast, as I just mentioned, full availability in our line of credit, the board felt we needed to reduce the dividend to account for both the challenges, but more importantly, simply the ongoing volatility in the equity and debt markets.

9 月份，我們的董事會確實將季度股息從每股 0.19 美元減少到了每股 0.15 美元，減少了 4 美元。雖然我們的現金流量數字很穩定，加元支付率很高，並且仍然得到很好的覆蓋，而且正如我剛才提到的，我們繼續預測我們的信貸額度將完全可用，但董事會認為我們需要減少股息這兩個挑戰，但更重要的是，股票和債務市場的持續波動。

We believe this reset dividend level will serve as a solid foundation for which to grow our dividend in the future as capital market recovers and leasing continues to accelerate. This level covers our taxable income and will generate approximately an additional $28 million of free cash flow to the company.

我們相信，隨著資本市場的復甦和租賃業務的持續加速，此次重置的股利水準將為我們未來增加股利奠定堅實的基礎。這一水準涵蓋了我們的應稅收入，並將為公司產生額外約 2,800 萬美元的自由現金流。

Based on the $0.60 per share annual dividend and the midpoint of our guidance, our CAD payout ratio for '23 is projected to be 75% and our FFO payout ratio is projected to be 52%. Both of those payout ratios are very much in line with our historical averages.

根據每股 0.60 美元的年度股息和我們指導的中點，我們 23 年的 CAD 派息率預計為 75%，我們的 FFO 派息率預計為 52%。這兩個支付率都非常符合我們的歷史平均值。

To spend just a few moments on looking at our development. We have $1.2 billion under active development. On the wholly owned pipeline of roughly $200 million that's 95% pre-leased. The remaining funding for these wholly owned developments is only $22 million, which is built into the capital plan that shows our line of credit being unused. And that's primarily for tenant improvement related to our 2340 Dulles property in Herndon, Virginia.

花一點時間來看看我們的發展。我們有 12 億美元正在積極開發中。價值約 2 億美元的全資管道中 95% 已預租。這些全資開發項目的剩餘資金僅為 2,200 萬美元，這筆資金已納入資本計劃，顯示我們的信貸額度尚未使用。這主要是為了改善與我們位於維吉尼亞州赫恩登杜勒斯 2340 號房產相關的租戶。

On a joint venture side, at full cost, that pipeline is 30% residential, 32% Life Science and 38% office. The remaining funding on this pipeline is less than $10 million. As you may recall, last quarter, we did increase some of the project costs to simply reflect the higher rate environment and in some cases, a slight delay in targeted stabilization dates.

在合資企業方面，以全部成本計算，該管道中 30% 為住宅，32% 為生命科學，38% 為辦公大樓。該管道的剩餘資金不足 1000 萬美元。您可能還記得，上個季度，我們確實增加了一些專案成本，只是為了反映較高的利率環境，並且在某些情況下，目標穩定日期略有延遲。

Going forward, we may see some additional cost increases related to higher TI costs. But even with these increases, we are targeting plan to maintain yield equivalency on all of our joint venture developments.

展望未來，我們可能會看到與更高的 TI 成本相關的額外成本增加。但即使有了這些成長，我們的目標仍是維持我們所有合資開發專案的收益率相當。

I guess, furthermore, given the volatility in the capital markets, we'll continue planning on several projects other than fully leased build-to-suit opportunities future development starts are on hold, pending both more leasing in our existing pipeline but also more clarity on the cost of debt capital and where cap rates will be.

此外，我想，考慮到資本市場的波動，我們將繼續規劃幾個項目，而不是完全租賃的定制機會，未來的開發啟動將被擱置，等待我們現有管道中的更多租賃，但也更加明確債務資本成本以及上限利率。

Looking ahead, given the mixed-use nature of our master-planned communities, our expected forward development pipeline is 27% Life Science, 42% residential, 22% office and 9% support retail, entertainment and hospitality. And as we identified on Page 6, our objective is to grow that life science portfolio and platform to over 23% of our square footage as market conditions allow and that would be built on land that we already own or control.

展望未來，考慮到我們總體規劃社區的混合用途性質，我們預期的遠期開發管道為 27% 生命科學、42% 住宅、22% 辦公室和 9% 支持零售、娛樂和酒店。正如我們在第6 頁上指出的那樣，我們的目標是在市場條件允許的情況下，將生命科學產品組合和平台擴大到我們面積的23% 以上，並將建在我們已經擁有或控制的土地上。

Just a quick review of specific projects. 2340 Dulles is 92% pre-leased. That project is moving into full operations in the very near future. 250 King of Prussia Road in our Radnor submarket is now complete. It does remain at 53%, at least as it was in previous quarter. We've had $18 million of remaining funding. Pipeline remains very strong. That pipeline is 100% life science and we have projected a stabilization date in Q2 '24. The increased remaining spend on that project is really the cost to do some additional tenant leasing. But as we indicated, last quarter, we anticipate higher rents will leave our current yield intact as this project moves into operation.

只是對具體項目的快速回顧。杜勒斯 2340 號已預租 92%。該項目將在不久的將來全面投入營運。拉德諾子市場的普魯士王路 250 號現已完工。它確實保持在 53%，至少與上一季相同。我們還有 1800 萬美元的剩餘資金。管道仍然非常強大。該管道 100% 屬於生命科學，我們預計穩定日期為 24 年第二季。該項目增加的剩餘支出實際上是進行一些額外租戶租賃的成本。但正如我們上季度所指出的，隨著該項目投入運營，我們預計較高的租金將使我們當前的收益率保持不變。

Pipeline activity on our development projects continue to build. We're actually pleased with the overall and continual increase in both tours and prospect activity as a true reinforcement of the quality thesis I mentioned earlier. We have a number of advanced discussions underway but none quite yet across the finish line. As I mentioned last quarter, primary reasons for the delay in making -- in tenants making decisions really seem to be driven at this point more by macro considerations rather than specific real estate concerns.

我們的開發項目的管道活動繼續進行。事實上，我們對旅遊和潛在客戶活動的整體持續成長感到滿意，這真正強化了我之前提到的品質論點。我們正在進行一些高級討論，但尚未完成任何討論。正如我上個季度提到的，租戶做出決策延遲的主要原因似乎更多是由宏觀考慮而非具體的房地產問題所驅動的。

Construction on our -- of our 3025 JFK project or Life Science office residential tower is on time for a Q4 '23 full delivery. We're currently 15% leased on the commercial portion with an active pipeline. It's almost 700,000 square feet for the life science and office component. We have done over 160 tours. We did deliver the first residential units with the balance phasing in over the next 1.5 quarters.

我們的 3025 JFK 專案或生命科學辦公住宅大樓的建設已按時於 23 年第 4 季全面交付。目前，我們租賃了擁有活躍管道的商業部分的 15%。生命科學和辦公部分佔地近 70 萬平方英尺。我們已經完成了 160 多次旅行。我們確實交付了第一批住宅單元，剩餘的住宅單元將在接下來的 1.5 個季度內逐步到位。

Activity levels are very good, and we currently have 62 leases executed, we're about 19% of the project. 57 of those leases have already taken occupancy and the rental rates that we're achieving are very much in line with pro forma, particularly now that the amenity floor just recently opened.

活動水準非常好，我們目前已執行 62 個租賃，約佔該專案的 19%。其中 57 個租約已經入住，我們實現的租金率與預計的非常一致，特別是在便利設施樓層最近剛開放的情況下。

3151 Market, our 441,000 square foot Life Science building in Schuylkill Yards, again, is on schedule and budget. The topping off ceremony occurred yesterday and the project's profile in the market continues to improve. The leasing pipeline there is roughly 400,000 square feet and tour activity now that the steel is up is beginning to increase as well.

位於 Schuylkill Yards 的 3151 Market 生命科學大樓佔地 441,000 平方英尺，再次按計劃和預算進行。昨天舉行了封頂儀式，該項目的市場形像不斷改善。那裡的租賃面積約為 40 萬平方英尺，隨著鋼材價格的上漲，旅遊活動也開始增加。

Uptown ATX Block A construction is also on time and on budget. Block A consists of 348,000 square feet of office -- excuse me, 341 residential units, 15,000 square feet of ground for retail. On the office component, the pipeline remains strong in advance of building delivery, which will be later this year. Pipeline includes a mix of prospects ranging from 5,000 square feet to 200,000 square feet. And the multi-family component of 341 units will begin phasing during the third quarter of next year.

Uptown ATX Block A 的建設也按時且符合預算。 A 座包括 348,000 平方英尺的辦公大樓——對不起，還有 341 個住宅單元，以及 15,000 平方英尺的零售用地。在辦公部分，在今年稍後的建築交付之前，管道仍然強勁。管道包括面積從 5,000 平方英尺到 200,000 平方英尺不等的各種前景。擁有 341 個單元的多戶住宅部分將於明年第三季開始分階段建設。

Moving back to University City. Our next phase of B.Labs on the ninth floor of Cira Centre is nearly complete. That's a 27,000 square foot expansion. This conversion of that office space to graduate lab space is now 81% pre-leased with a lease out for the remainder of the space. That full conversion will be completed in Q1 '24. The total costs remain on target for $20 million with an expected yield of about 11%.

搬回大學城。我們位於 Cira 中心九樓的 B.Labs 下一階段已接近完成。擴建面積達 27,000 平方英尺。該辦公空間轉變為研究生實驗室空間，目前 81% 已預租，其餘空間已出租。全面轉換將於 24 年第一季完成。總成本仍為 2,000 萬美元的目標，預期收益率約為 11%。

So to wrap up commentary on development activity. The key phrases on our forward pipeline is timing, flexibility, low basis per FAR and product diversity. Of the square feet we can build only about 25% is office with the ability to do between 3 million and 4 million square feet of life science space, and over 4,000 apartments. And the overall overlay approvals we have on our master plan developments give us the flexibility to adjust that mix further to meet market demands.

總結一下對開發活動的評論。我們的遠期管道的關鍵字是時機、靈活性、每 FAR 的低基數和產品多樣性。在我們可以建造的平方英尺中，只有大約 25% 是辦公室，能夠建造 300 萬到 400 萬平方英尺的生命科學空間，以及 4,000 多套公寓。我們對總體規劃開發的整體重疊批准使我們能夠靈活地進一步調整該組合以滿足市場需求。

Looking at the sales activity, look, there's no question that the pricing and pace of office sales has been impacted by the challenging rate environment and the pullback by lenders in commercial real estate and certainly the negative macro overtones on office. Despite this, as previously highlighted, we did sell the $53 million in Austin. And based on our existing pipeline and transactions in process, we're still maintaining our $100 million to $125 million sales target by year-end. We do have about $200 million in the market for sale. Those properties are in our Met D.C. and Pennsylvania suburban operations. And we also have several joint venture properties in the market as well.

從銷售活動來看，毫無疑問，辦公室銷售的定價和節奏受到了充滿挑戰的利率環境、商業房地產貸款人的撤資以及辦公室宏觀負面影響的影響。儘管如此，正如之前所強調的，我們確實在奧斯汀出售了 5300 萬美元。根據我們現有的管道和正在進行的交易，我們仍然維持到年底 1 億至 1.25 億美元的銷售目標。我們確實有大約 2 億美元的市場可供出售。這些房產位於我們的 Met D.C. 和賓州郊區業務。我們在市場上也擁有幾處合資物業。

Several of those profits are moving through the contract negotiations and maintenance has a some level of short-term bridge seller financing.

其中一些利潤是透過合約談判轉移的，並維持一定程度的短期過橋賣方融資。

In general, we continue to see a good list of bidders with the primary challenge being getting those acquisitions financed. Certainly, dollars generated from all these sales and joint venture restructurings will be used to fund our remaining developed pipeline commitments, further reduce leverage and redeploying the higher growth opportunities, including debt and stock buybacks on a leverage-neutral basis.

總的來說，我們繼續看到一份不錯的競標者名單，其主要挑戰​​是為這些收購融資。當然，所有這些銷售和合資企業重組產生的美元將用於為我們剩餘的已開發管道承諾提供資金，進一步降低槓桿並重新部署更高的成長機會，包括在槓桿中性的基礎上進行債務和股票回購。

With that, Tom will now provide an overview of our financial results.

湯姆現在將概述我們的財務表現。

Thank you, Jerry, and good morning. Our third quarter net loss totaled $21.7 million or $0.13 per share, and our results were negatively impacted by a noncash impairment charge totaling $11.7 million or $0.07 per share. Third quarter FFO totaled $50.6 million or $0.29 per diluted share and $0.01 above consensus estimates.

謝謝你，傑瑞，早安。我們第三季的淨虧損總計 2,170 萬美元或每股 0.13 美元，我們的業績受到總計 1,170 萬美元或每股 0.07 美元的非現金減損費用的負面影響。第三季 FFO 總額為 5,060 萬美元，或攤薄後每股 0.29 美元，比一致預期高出 0.01 美元。

Some general observations regarding the third quarter. Being above consensus, we had several moving pieces and several variances compared to our second quarter guidance. Management leasing and development fees were up $700,000, above our reforecast, primarily due to higher leasing commission income. Interest expense was $500,000 below reforecast, primarily due to higher capitalized interest and no borrowings on our line of credit. We forecasted 2 vacant land parcel sales to generate $1 million of land gains during the quarter, and they were both delayed until the fourth quarter.

關於第三季的一些一般性觀察。與我們第二季度的指導相比，我們有一些變化和一些差異，超出了共識。管理租賃和開發費用增加了 70 萬美元，高於我們的重新預測，主要是由於租賃佣金收入增加。利息支出比重新預測的低 50 萬美元，主要是由於資本化利息較高且我們的信用額度沒有借款。我們預計本季兩塊空置地塊的銷售將產生 100 萬美元的土地收益，但它們都被推遲到了第四季。

Our third quarter debt service and interest coverage ratios were both 2.7 and net debt to GAV was 41.6%. Our third quarter annualized core net debt to EBITDA was 6.3 and within our 2023 range, and our annualized combined net debt to EBITDA was 7.4 and 1% above the high end of our 7.0 to 7.3 guidance. Any further reduction will be based on timing, size and pricing of our fourth quarter asset sales.

我們第三季的負債比率和利息覆蓋率均為 2.7，淨負債佔 GAV 的比率為 41.6%。我們第三季的年化核心淨債務與EBITDA 比率為6.3，在2023 年的範圍內，我們的年化合併淨債務與EBITDA 之比為7.4，比我們7.0 至7.3 指導值的上限高出1 %。任何進一步的削減將基於我們第四季資產銷售的時間、規模和定價。

Regarding portfolio changes. During the quarter, we removed 2 properties located in Austin, totaling 225,000 square feet from our core portfolio. Both properties will not be available for lease, and were located in our Uptown ATX development. We anticipate adding 2340 Dulles Corner to our core portfolio during the fourth quarter as well.

關於投資組合的變化。本季度，我們從核心投資組合中移除了位於奧斯汀的 2 處房產，總面積為 225,000 平方英尺。這兩處房產均不可出租，且位於我們的 Uptown ATX 開發案內。我們預計第四季也將 2340 Dulles Corner 加入我們的核心投資組合。

On the financing activity, as Jerry outlined, we closed on a construction loan for 155 King of Prussia Road in Radnor, Pennsylvania. The loan bears interest of 250 basis points over SOFR, and we anticipate drawing on that facility during the fourth quarter as our equity is now fully funded. We remain focused on our 2024 bond maturity in October and continue to evaluate funding in both the secured and unsecured financing markets.

在融資活動方面，正如傑瑞所概述的，我們為賓夕法尼亞州拉德諾普魯士國王路 155 號項目完成了一筆建設貸款。該貸款的利息比 SOFR 高出 250 個基點，我們預計在第四季度利用該貸款，因為我們的股本現已全額融資。我們仍關注 2024 年 10 月債券到期情況，並繼續評估擔保和無擔保融資市場的融資情況。

As you know, the traditional banks are allocated a little to none to new originations on new office loans, except for certain situations as fully leased build-to-suit properties. However, we will continue to explore term loans from our syndicate banks as we did earlier this year to execute on a $70 million term loan.

如您所知，除了某些完全租賃的客製化物業的情況外，傳統銀行很少甚至沒有分配給新的辦公室貸款。然而，我們將繼續向我們的銀團銀行尋求定期貸款，就像我們今年早些時候執行的 7000 萬美元定期貸款一樣。

We are exploring some property level secured financing options as well, including another wholly owned CMBS transaction. We anticipate our ongoing sales and joint venture liquidation strategy will also generate additional capacity. As we discussed in the past, we prefer to remain an unsecured borrower and will continue to monitor the unsecured bond market as well. Given the above, we will seek the most efficient capital source with a bias towards the unsecured market.

我們也正在探索一些財產級擔保融資方案，包括另一項全資擁有的 CMBS 交易。我們預計我們正在進行的銷售和合資企業清算策略也將產生額外的產能。正如我們過去討論的那樣，我們更願意繼續作為無擔保借款人，並將繼續監控無擔保債券市場。鑑於上述情況，我們將尋求最有效的資金來源，並偏向無擔保市場。

Regarding our upcoming 2024 joint venture debt maturity, as Jerry mentioned, we are working with our partners on the 2024 maturities to potentially extend the current maturity dates with our existing lenders. Commence marketing efforts for new lenders and make certain property level sales to lower JV leverage. Regarding our MAP joint venture, we hope to agree to a recapitalization ahead of the current December 1, 2023, extension date. We are a 50% partner in a joint venture, which owns leasehold positions and a portfolio of assets and we are working with the lender potentially recap the joint venture with the ground owner.

關於我們即將到來的 2024 年合資債務到期日，正如 Jerry 所提到的，我們正在與我們的合作夥伴就 2024 年到期日進行合作，以可能延長與現有貸方的當前到期日。開始針對新貸方的行銷工作，並進行一定的房地產銷售，以降低合資企業的槓桿率。關於我們的 MAP 合資企業，我們希望在目前的 2023 年 12 月 1 日延期日期之前同意進行資本重組。我們是一家合資企業的 50% 合夥人，該合資企業擁有租賃權和資產組合，我們正在與貸方合作，可能會與地面所有者重新組成合資企業。

Looking at 2023 guidance, we narrowed the guidance by $0.02 and maintain a midpoint of $1.16 and range is mainly attributable to the variability of our asset sales program, both in terms of volume and timing as well as our projected land sale and related gains.

看看2023 年的指導，我們將指導縮小了0.02 美元，並維持了1.16 美元的中點，範圍主要歸因於我們的資產銷售計劃的變化，無論是數量和時間安排，還是我們預計的土地出售和相關收益。

On our 2023 business plan continues, we have the following general assumptions as property level sales with [$53.3] million complete. The balance of our guidance is expected to occur in the fourth quarter, so dilution should not be very significant. No new property acquisitions. No anticipated ATM or share buyback activity and the share count will approximate 173.5 million shares.

關於我們的 2023 年業務計劃，我們有以下一般假設，即完成房地產銷售 [5333] 萬美元。我們的指導預計將在第四季度實現平衡，因此稀釋程度應該不會很大。沒有新的財產收購。預計不會有 ATM 或股票回購活動，股票數量約 1.735 億股。

Our fourth quarter guidance. Looking more closely, we have the following general assumptions. Property level operating income will total approximately $74 million and will be about $3 million below the 3Q range, primarily due to lower revenue from several known move outs we discussed and incrementally higher operating expenses primarily due to fourth quarter seasonality and higher R&M.

我們的第四季指引。更仔細地觀察，我們有以下一般假設。物業層面的營業收入將總計約7,400 萬美元，比第三季的範圍低約300 萬美元，這主要是由於我們討論的幾個已知搬遷導致的收入下降，以及主要由於第四季度季節性和更高的R&M 導致的營運費用逐漸增加。

FFO contribution from our joint ventures will break even for the fourth quarter. The sequential decrease is primarily due to the residential component of Schuylkill Yards less becoming operational. And during the fourth quarter, we will recognize higher operating losses, lower capitalized interest and increased preferred equity costs. These losses will decrease over the next 4 to 5 quarters as the residential operation fully stabilizes.

我們合資企業的 FFO 貢獻將在第四季度實現收支平衡。環比下降主要是由於 Schuylkill Yards 的住宅部分投入較少。在第四季度，我們將認識到更高的營運虧損、更低的資本化利息和更高的優先股成本。隨著住宅營運完全穩定，這些損失將在未來 4 至 5 個季度內減少。

In addition, our math FFO contribution decreased about $700,000, primarily due to higher interest expense. Our fourth quarter G&A will remain consistent with the third quarter at $8.1 million. Our interest expense, including deferred financing costs, were approximately $26.5 million and capitalized interest will approximate $3 million. Termination and other fee income will total $6 million, which primarily consists of anticipated onetime real estate transaction, generating about $4.5 million of income. Net management leasing and development fees will be $3 million as we forecast sequential lower third-party lease commission income after a higher third quarter level.

此外，我們的數學 FFO 貢獻減少了約 70 萬美元，主要是由於利息支出增加。我們第四季的管理費用將與第三季保持一致，為 810 萬美元。我們的利息支出（包括遞延融資成本）約為 2,650 萬美元，資本化利息約為 300 萬美元。終止費用和其他費用收入總計 600 萬美元，主要包括預期的一次性房地產交易，產生約 450 萬美元的收入。淨管理租賃和開發費用將為 300 萬美元，因為我們預計第三方租賃佣金收入在第三季水準較高後將環比下降。

Land gain and tax provision will total about $1.1 million of income, representing 2 forecasted land sales that didn't occur in the third quarter.

土地收益和稅收撥備的收入總計約為 110 萬美元，相當於第三季未發生的 2 預測土地銷售。

On the capital plan, we experienced better than forecasted third-party CAD payout ratio of 76%, primarily due to leasing capital costs being below our business plan range and improved operating results. Based on a revised annual dividend of $0.60 per share, our pro forma 2023 coverage ratio is projected to be 75%.

在資本計畫方面，我們的第三方加幣支付率為 76%，優於預期，這主要是由於租賃資本成本低於我們的業務計畫範圍以及營運績效的改善。根據修訂後的每股 0.60 美元年度股息，我們預計 2023 年的覆蓋率預計為 75%。

As outlined on Page 14 of the supplemental package, our fourth quarter capital plan is very straightforward and totals $95 million. Most importantly, we continue to prioritize liquidity and still project no borrowings on our $600 million unsecured line of credit at the end of the year. Uses during the fourth quarter are comprised of $36 million of development and redevelopment, $26 million of common dividends, $8 million of revenue maintain, $10 million of revenue create and $15 million contribution to our joint ventures. The primary sources are going to be capital after interest payments totaling $50 million, $10 million of construction loan proceeds for 155 King of Prussia Road and $50 million of net cash proceeds from property, land and other sales.

如補充方案第 14 頁所述，我們第四季的資本計畫非常簡單，總額為 9,500 萬美元。最重要的是，我們繼續優先考慮流動性，並且預計年底時我們的 6 億美元無擔保信貸額度仍不會借款。第四季的用途包括 3600 萬美元的開發和再開發、2600 萬美元的普通股息、800 萬美元的收入維持、1000 萬美元的收入創造以及 1500 萬美元的合資企業捐款。主要來源將是總計 5000 萬美元的扣除利息後的資本、普魯士國王路 155 號的 1000 萬美元的建築貸款收益以及來自房地產、土地和其他銷售的 5000 萬美元的淨現金收益。

Based on the capital plan outlined above, we project a $15 million increase in cash during the quarter. We are also maintaining our net debt-to-EBITDA range of 7 to 7.3. And will be partially dependent meeting that range based on the timing of the fourth quarter sales that I mentioned previously. Also, that will be impacted by any GAV recapitalization or sales during the quarter as well. Our debt to GAV will be in the 40% to 42% range.

根據上述資本計劃，我們預計本季現金增加 1500 萬美元。我們也將淨債務與 EBITDA 比率維持在 7 至 7.3 之間。並且將部分依賴我之前提到的第四季度銷售時間來滿足該範圍。此外，這也將受到本季任何 GAV 資本重組或銷售的影響。我們欠 GAV 的債務將在 40% 至 42% 範圍內。

Our core net debt-to-EBITDA range is 6.2 to 6.5. This range excludes our joint ventures and our active development projects. We continue to believe this core leverage metric better reflects the leverage of our core portfolio and eliminates our more highly levered joint ventures and our unstabilized development and redevelopment projects.

我們的核心淨負債與 EBITDA 的比率範圍為 6.2 至 6.5。該範圍不包括我們的合資企業和我們積極的開發項目。我們仍然相信，這個核心槓桿指標更好地反映了我們核心投資組合的槓桿率，並消除了我們槓桿率更高的合資企業以及不穩定的開發和再開發項目。

We believe that our leverage ratios are elevated due to our development pipeline. And we believe once those developments are stabilized, our leverage will decrease back closer to this core leverage ratio. We anticipate our debt service and interest coverage ratio to approximate 2.6 by year-end, which represents a slight sequential decrease from the coverage ratios in the third quarter, primarily due to the additional development spend and higher interest rates.

我們相信，由於我們的開發管道，我們的槓桿率有所提高。我們相信，一旦這些發展穩定下來，我們的槓桿率將下降回到接近這個核心槓桿率。我們預計到年底，我們的償債和利息覆蓋率將達到約 2.6，這比第三季的覆蓋率略有下降，這主要是由於額外的開發支出和更高的利率。

I will now turn the call back over to Jerry.

我現在將把電話轉回給傑瑞。

Great. Tom, thank you very much. So the key takeaways are the portfolio is in solid shape with an increasing leasing pipeline. As I mentioned, we continue to be very pleased with the level of traction through every element of our portfolio. .

偉大的。湯姆，非常感謝你。因此，關鍵的要點是投資組合狀況良好，租賃管道不斷增加。正如我所提到的，我們仍然對我們投資組合的每個要素的吸引力水平感到非常滿意。 。

Our average annual rollover exposure through 2026 is only 6.7%. We've been posting and expect to continue to post fairly strong mark-to-markets. Manageable capital spend is evidenced by our reducing our capital ratios on our horizon as well. And we do expect to have stable and accelerating leasing velocity through our development pipeline.

到 2026 年，我們的年平均展期風險僅為 6.7%。我們一直在發布並預計將繼續發布相當強勁的按市價計算。我們也降低了資本比率，證明了資本支出的可控制性。我們確實希望透過我們的開發管道實現穩定且不斷加快的租賃速度。

We have covered all of our wholly owned near-term liquidity needs, our plan to keep the line of credit 0 and are executing a baseline business plan that, as Tom touched on, improves liquidity, keep that portfolio in very solid footing with strong forward leasing prospects.

我們已經滿足了我們所有全資的近期流動性需求，我們計劃將信貸額度保持在0，並且正在執行一項基準業務計劃，正如湯姆談到的那樣，該計劃提高了流動性，使該投資組合保持在非常堅實的基礎上，具有強大的遠期租賃前景。

So as usual, and where we started with that we hope you and your families are doing well. And we're delighted to open up the floor for questions, Liz. We do ask in the interest of time, you limit yourself to one question and a follow-up. Liz?

像往常一樣，我們希望您和您的家人一切順利。莉茲，我們很高興歡迎大家提問。出於時間考慮，我們確實會問，您只能回答一個問題和一個後續問題。麗茲？

(Operator Instructions) Our first question comes from the line of Steve Sakwa with Evercore ISI.

（操作員說明）我們的第一個問題來自 Evercore ISI 的 Steve Sakwa。

I guess first question, Jerry, I just want to go back on sort of the JVs and the debt that you were sort of talking about, just to make sure I'm understanding. Are you potentially in a process of maybe trying to hand keys back? Or is this just a situation where you and your partners are trying to just get to the finish line on, I guess, loan extensions? I just couldn't tell from the commentary kind of where you were heading with some of those assets.

我想第一個問題，傑瑞，我只是想回顧一下你剛才談到的合資企業和債務，只是為了確保我理解。您是否正在嘗試歸還鑰匙？或者這只是您和您的合作夥伴試圖完成貸款延期的情況？我只是無法從評論中看出你將如何利用其中一些資產。

Yes, Steve, great question. Thanks for the inquiry on the clarity. I mean our intention is to work with our partners to extend these loans out on terms that are acceptable to both the lender and the partnership as we wait for the market conditions to improve. .

是的，史蒂夫，好問題。感謝您對清晰度的詢問。我的意思是，我們的目的是與我們的合作夥伴合作，在我們等待市場狀況改善的同時，按照貸方和合作夥伴雙方都能接受的條款發放這些貸款。 。

I think from Brandywine standpoint, we think we have a cadre of very high-quality partners, very seasoned, very experienced. The loans themselves are all structured on a nonrecourse basis. So we do have the opportunity that if things do not work out, we'll certainly take a look at what's the best answer for Brandywine.

我認為從布蘭迪萬的角度來看，我們認為我們擁有一群非常高素質的合作夥伴，他們經驗豐富，經驗豐富。貸款本身都是在無追索權的基礎上建構的。因此，我們確實有機會，如果事情不順利，我們肯定會看看白蘭地酒的最佳答案是什麼。

But our plan going in each of these discussions is to make sure that we accommodate both the partnerships objectives and the lenders' objectives. To the extent we can to facilitate a bridge solution that will keep these partnerships intact as the marketplace continues to recover from a leasing standpoint, but also, hopefully, the capital markets provide more stability. So there's more opportunities to refinance.

但我們在每一次討論中的計劃都是確保我們能夠兼顧合作夥伴的目標和貸方的目標。在某種程度上，我們可以促成一個橋樑解決方案，隨著市場從租賃的角度繼續復甦，使這些合作夥伴關係保持完整，但也希望資本市場提供更多的穩定性。因此，再融資的機會更多。

I think one of the points I was trying to amplify is that if you look at the balance sheet and the supplemental package, those JVs have $624 million of nonrecourse debt on them. $113 million of that is attributable to Brandywine. And our investment base in those ventures excluding MAP, which has a negative basis is $68 million.

我認為我試圖強調的一點是，如果你看一下資產負債表和補充方案，你會發現這些合資企業有 6.24 億美元的無追索權債務。其中 1.13 億美元來自 Brandywine。我們在這些企業中的投資基礎（不包括 MAP）為 6,800 萬美元，其基差為負。

So I think we're in a good position as a sponsor with our partners to go into the discussion with every single lender with the hopes of structuring a program that's mutually satisfactory to both parties.

因此，我認為，作為合作夥伴的發起人，我們處於有利地位，可以與每一個貸方進行討論，希望建立一個雙方都滿意的計劃。

Okay. And just as a quick follow-up. When you kind of look at your expirations for next year, it's about 880,000 feet. I know you'll provide more details on exact guidance, but are there any, I guess, large known move-outs at this point in '24 that you could sort of highlight or share with us that might more negatively impact the retention rate next year?

好的。就像快速跟進。當你看看明年的到期日時，你會發現大約是 880,000 英尺。我知道您會提供有關確切指導的更多詳細信息，但我猜，在24 年的這個時候，您是否可以強調或與我們分享一些已知的大型遷移，這可能會對接下來的保留率產生更大的負面影響年？

George?

喬治？

Yes, Steve, it's George. We've got -- for '24, we've only got 2 leases over 50,000 square feet. One of those is potentially a move out, and we've already got quite a bit of increased activity looking at that space over at our Logan Square project. And then the other one, we've actually got an amendment out, some of the square footage in that 50 will be converted to swing space, so it will bridge '24 into '25, and a portion of it will be extended on a long-term basis. So really only kind of 2 at the present time in that higher range.

是的，史蒂夫，是喬治。 24 年，我們只有 2 個超過 50,000 平方英尺的租約。其中之一可能是搬出，我們已經在洛根廣場項目中對這個空間進行了相當多的活動增加。然後另一個，我們實際上已經提出了一項修正案，這 50 平方英尺中的一些平方英尺將轉換為週轉空間，因此它將把 24 座橋連接到 25 座，其中一部分將在長期的基礎上。所以目前在更高的範圍內實際上只有 2。

Our next question comes from the line of Camille Bonnel with Bank of America.

我們的下一個問題來自美國銀行的 Camille Bonnel。

Can you hear me?

你聽得到我嗎？

Yes.

是的。

Following up on the balance sheet, with further occupancy pressures and slower development leasing. To what extent are you factoring these risks when thinking about deleveraging? And what other potential avenues could you consider to drive further progress on this front?

資產負債表跟進，入住壓力進一步加大，開發租賃放緩。在考慮去槓桿化時，您在多大程度上考慮了這些風險？您還可以考慮哪些其他潛在途徑來推動這方面的進一步進展？

I guess, Tom and I can tag team. I think from our perspective, the portfolio while we're -- the occupancy range has been reduced by 100 basis points in a range for '23. As I mentioned, that was really due to some slower delays in occupancy. We've got our leasing percentage where it was. So we certainly think the portfolio has a good degree of stability to it.

我想，湯姆和我可以組隊。我認為，從我們的角度來看，我們的投資組合入住率範圍在 23 年的範圍內減少了 100 個基點。正如我所提到的，這實際上是由於入住速度較慢造成的。我們的租賃百分比保持在原來的水平。因此，我們當然認為該投資組合具有良好的穩定性。

And while the elements of the development pipeline are progressing slower than we would like, the pipeline continues to get very strong. So we do have an expectation that as we've even seen on the residential component of 3025, where we're running ahead of pro forma on the residential leasing side that we will be in a good position on those development projects. So that's more of a backdrop.

雖然開發管道的各個要素的進展速度比我們希望的要慢，但管道繼續變得非常強大。因此，我們確實期望，正如我們在 3025 的住宅部分所看到的那樣，我們在住宅租賃方面預計領先於 3025 的住宅部分，我們將在這些開發項目中處於有利地位。所以這更多的是一個背景。

To frame out where we are in terms of looking at liquidity, look, that remains a key objective for the company. So as we take a look at the deleveraging components, one is clearly land sales. And as we mentioned, we still remain focused on selling noncore land parcels. Some of those are going through rezoning efforts to other uses and office to kind of optimize the value of those landholdings.

為了確定我們在流動性方面的狀況，這仍然是公司的關鍵目標。因此，當我們檢視去槓桿化的組成部分時，其中一個明顯就是土地出售。正如我們所提到的，我們仍然專注於出售非核心地塊。其中一些正在努力將其重新規劃為其他用途和辦公場所，以優化這些土地的價值。

Two, we will continue to push our sales program. And frankly, Camille, to the extent that we need to facilitate good sales in this kind of challenged market, we are prepared to take back some accretive short-term bridge financing to generate some near-term liquidity for the company, delever the balance sheet and create an interest rate bridge on those purchase money mortgages for the next couple of years.

第二，我們將繼續推進我們的銷售計劃。坦白說，卡米爾，如果我們需要在這種充滿挑戰的市場中促進良好的銷售，我們準備收回一些增值的短期過橋融資，為公司產生一些短期流動性，去槓桿化資產負債表並為未來幾年的購買貨幣抵押貸款建立利率橋樑。

Three, we do plan to reduce our interest and/or liquidate some of our positions in these joint ventures, particularly some of the operating ones that are kind of reaching the end of their life cycle. Again, while we don't have a lot of dollars invested in some of them. We do pick up a fair amount of debt attribution. And to the extent that we're in a position to reduce that debt attribution, that in and of itself creates some great capital capacity.

第三，我們確實計劃減少我們在這些合資企業中的權益和/或清算我們的一些頭寸，特別是一些即將結束生命週期的營運企業。同樣，雖然我們沒有在其中一些項目上投入大量資金。我們確實獲得了相當數量的債務歸屬。就我們能夠減少債務歸屬而言，這本身就創造了一些龐大的資本能力。

In terms of -- there's other opportunities we are exploring in terms of looking at private equity investments in some portions of our portfolio, that could provide not just the near-term liquid, but also deleveraging. And I think Tom did a great job of outlining some of our other tactics in terms of resolving our 2024 bond maturity.

就我們投資組合某些部分的私募股權投資而言，我們正在探索其他機會，這不僅可以提供短期流動性，還可以提供去槓桿化。我認為 Tom 出色地概述了我們解決 2024 年債券到期問題的其他一些策略。

Yes. Camille, this is Tom. To add to that. We do have -- most of our debt is fixed at 93%. And to the extent we can keep the line of credit unused, that certainly limits even more our exposure to the floating rate debt.

是的。卡米爾，這是湯姆。補充一下。我們確實有——我們的大部分債務固定在 93%。在我們可以維持信用額度未使用的情況下，這肯定會進一步限制我們對浮動利率債務的曝險。

And really, as Jerry mentioned on the JVs, if you look at sort of our wholly owned net debt to EBITDA, which we outlined on Page 32. Wholly owned net debt, even with the developments we are doing wholly owned, we're at 6.7. So I do think being able to manage our joint venture leverage will help as well in bringing that down.

事實上，正如傑瑞在合資企業中提到的那樣，如果你看看我們在EBITDA 上的全資淨債務，我們在第32 頁上概述了這一點。全資淨債務，即使我們正在全資進行開發，我們也處於6.7.因此，我確實認為能夠管理我們的合資企業槓桿也將有助於降低這種情況。

Certainly, the bond in 2024 will be dilutive. And depending on how we finance that will be a measure of what that does to sort of our fixed charge and leverage ratios. But we're looking at several different ways of doing that, whether it be in the unsecured market or secured or the additional asset sales, as Jerry outlined.

當然，2024 年的債券將會被稀釋。根據我們的融資方式，這將衡量這對我們的固定費用和槓桿率的影響。但正如傑瑞所概述的那樣，我們正在考慮幾種不同的方法來做到這一點，無論是在無擔保市場還是有擔保或額外的資產銷售。

Appreciate the details. As my follow-up, could we focus a bit on Plymouth Meeting, given the current occupancy levels are nearly 14% of your leases are expiring through 2024. How is the leasing pipeline generally trending in that specific submarket?

欣賞細節。作為我的後續行動，考慮到目前的入住率接近 14% 的租約將於 2024 年到期，我們能否重點關註普利茅斯會議。這個特定子市場的租賃管道總體趨勢如何？

I'm sorry, Camille -- did you mention Plymouth Meeting?

抱歉，卡米爾——你提到普利茅斯會議了嗎？

Yes, Plymouth Meeting.

是的，普利茅斯會議。

Okay. So look for some detail on the Plymouth Meeting.

好的。因此，請尋找有關普利茅斯會議的一些細節。

Yes. So we had a 55,000 square foot tenant move out during the third quarter. That's on 2 contiguous stores at 401 Plymouth Road, which is a great project for us right at the interchange of the Turnpike and the Northeast extension. .

是的。因此，我們有一個 55,000 平方英尺的租戶在第三季搬出。那是在普利茅斯路 401 號的 2 家相鄰商店上，這對我們來說是一個偉大的項目，就在收費公路和東北延伸線的交匯處。 。

Activity levels have been good. We've had several tours within the space, knowing that it was coming back. We've got one proposal outstanding right now that we're still kind of back and forth with the prospect. But -- we feel good about it. The space is in relatively good condition. So I'm not sure it will be a heavy capital requirement, but we feel good about that project, its location and the underlying pipeline.

活動水平一直很好。我們已經在這個空間進行了幾次參觀，知道它會回來。我們現在有一項提案尚未完成，但我們仍在與潛在客戶進行反覆討論。但是——我們對此感覺良好。空間狀況相對較好。所以我不確定這是否會是一個沉重的資本要求，但我們對這個項目、它的位置和基礎管道感覺很好。

And I think just to add on George's comments, Camille, 401 is the top project in the market, probably is not that strong -- not that large of a market. It combines with Blue Bell, which is adjoining submarket.

我想補充一下喬治的評論，卡米爾，401 是市場上的頂級項目，可能沒有那麼強大——沒有那麼大的市場。它與毗鄰的子市場 Blue Bell 結合在一起。

But the 401 as George mentioned, very high profile project at the interchange of really 3 interstates. And the pipeline, the visibility there will be good. So if there was a building we had to get space back on, and I'm saying we want space back. That was probably the one that would be the -- had the highest probability of near-term reletting.

但喬治提到的 401 號公路是一個非常引人注目的項目，位於 3 個州際公路的交匯處。還有管道，那裡的能見度會很好。因此，如果有一棟建築，我們必須重新獲得空間，我是說我們想要重新獲得空間。這可能是近期轉租可能性最高的一個。

Our next question comes from the line of Anthony Paolone with JPMorgan.

我們的下一個問題來自摩根大通的安東尼·保隆 (Anthony Paolone)。

I guess, first question, if I look at the development pipeline and call it yields around Seven and think about current debt costs, if this rate environment persists, do you think just as this stuff gets delivered, it could be an actual like earnings drag? Or how do you think about the levers you might have to kind of protect earnings for the company if that's kind of the situation?

我想，第一個問題，如果我看看開發管道並將其稱為七左右的收益率，並考慮當前的債務成本，如果這種利率環境持續下去，您是否認為隨著這些東西的交付，它可能會成為實際的收益拖累？或者，如果發生這種情況，您如何看待可能需要採取哪些措施來保護公司的利益？

Yes, Tony. Good question. Look, I think certainly with the increased rate of debt, it squeezes the return margins on those properties. We typically have done -- this will build in 3-plus percent rental rate increases into all of those leases. So the idea from our perspective is to get those projects to a stabilization point.

是的，托尼。好問題。我認為，隨著債務率的上升，這些房產的回報率肯定會受到擠壓。我們通常會這樣做——這將為所有這些租賃增加 3% 以上的租金。因此，從我們的角度來看，我們的想法是讓這些項目達到穩定點。

The lease terms we're doing there typically tend to be between 10 to 15 years. They tend to be with good credit tenants with good collateral support. So the game plan would be as this lease -- as the interest rate market still remains higher than any of us would like, execute the business plan for each of those assets, maintain yield equivalency or potentially higher yield equivalency than we have in the projections right now.

我們在那裡做的租賃期限通常在 10 到 15 年之間。他們往往與信用良好的租戶合作，並提供良好的抵押支持。因此，遊戲計劃將與此租賃一樣 - 由於利率市場仍然高於我們任何人的預期，因此執行每項資產的業務計劃，維持收益率等值或可能比我們預測的更高的收益率等值現在。

And then learn or lift -- get those projects stabilized and then really focus on kind of the refinancing or sale options as the market conditions -- as market conditions clarify. But certainly, with debt costs going up to the extent that they have during the development cycle, the margin of contribution is lower than we were initially targeting when we started these projects. And we recognize that, which is why one of the reasons we're focused on driving the net effect of rents we can achieve, not just on those projects, but across the entire portfolio.

然後學習或提升——讓這些項目穩定下來，然後真正專注於市場條件下的再融資或出售選擇——隨著市場條件的澄清。但可以肯定的是，隨著債務成本在開發週期中上升到一定程度，貢獻邊際低於我們啟動這些專案時最初的目標。我們認識到這一點，這就是為什麼我們專注於推動我們可以實現的租金淨效應的原因之一，不僅在這些項目上，而且在整個投資組合中。

Okay. And then just a follow-up. If you look out to maybe '24 or even perhaps '25, you noted the limited exposure on leasing. But can you maybe address just where you think mark-to-markets maybe right now and/or perhaps if there's any appreciable change in the capital that might be needed for that leasing?

好的。然後只是後續行動。如果您關注 24 年甚至 25 年，您會注意到租賃業務的風險有限。但是，您是否可以解決您認為現在可能以市價計價的問題和/或租賃可能需要的資本是否有任何明顯變化？

Look, I think from a mark-to-market right now, the best estimate we gave you is what we've been posting thus far. So we do expect to continue to see very good mark-to-market in our CBD, University City and particularly our Radnor submarket in Pennsylvania. I do think, though, Tony, in all -- we'll continue to have negative mark-to-markets coming out of Austin. That market is in a certainly a state of disequilibrium.

看，我認為從目前的市價來看，我們給您的最佳估計就是我們迄今為止發布的內容。因此，我們確實預期我們的 CBD、大學城，特別是賓州的拉德諾子市場將繼續看到非常好的市場表現。不過，東尼，我確實認為，總的來說，奧斯汀將繼續出現負市價。這個市場肯定處於一種不平衡的狀態。

And as you noticed from that new page we put into the supplemental, some of our bigger vacancy exposures are in through over Austin complexes. So I think there, the watchword will be accelerate activity, meet the market in terms of pricing. Try and keep good annual rent bumps in and control capital to the extent that we can.

正如您從我們放入補充資料的新頁面中註意到的那樣，我們的一些較大的空缺風險敞口來自奧斯汀綜合體。所以我認為，口號將是加速活動，在定價方面迎合市場。嘗試保持良好的年租金波動，並儘可能控制資本。

But look, one of the interesting things that we are seeing is the competitive set is actually shrinking a little bit in some of these markets, not every landlord as the quality product we have nor the financial resources to attract tenancy. So our focus remains on leasing every square foot through the portfolio, driving net effective rents as high as we possibly can.

但是，我們看到的有趣的事情之一是，在其中一些市場中，競爭環境實際上在一點點萎縮，並不是每個房東都擁有我們擁有的優質產品，也沒有足夠的財務資源來吸引租戶。因此，我們的重點仍然是透過投資組合出租每一平方英尺，盡可能提高淨有效租金。

And really taking advantage of this continuing window we see of tenants really wanting to move into higher quality project with landlord stability. Brokers want to show space in buildings where they can get their leasing commissions. Tenants want to move into buildings where they know if there's certainty of getting their tenant improvement dollars funded. Brandywine resonates on both of those fronts incredibly well. So -- we've increased our leasing teams and our talent at the ground level to make sure that we're really focused on turning over every possible stone we think there's a leasing prospect.

真正利用這個持續的窗口，我們看到租戶確實希望搬入更高品質的項目，且房東穩定。經紀人希望展示建築物中的空間，以便他們可以獲得租賃佣金。租戶希望搬入他們知道是否可以確定為租戶改善資金提供資金的建築物。白蘭地酒在這兩個方面都產生了令人難以置信的良好共鳴。因此，我們增加了租賃團隊和基層人才，以確保我們真正專注於交出我們認為有租賃前景的每一塊可能的石頭。

Our next question comes from the line of Michael Griffin with Citi.

我們的下一個問題來自邁克爾·格里芬與花旗的對話。

Great. For the Skyway asset sale, do you have a sense of what the cap rate or buyer interest was on that property? And then for assets you're currently marketing, a similar question, where do you think you could sell, lease that or and what's potential buyer pool?

偉大的。對於 Skyway 資產出售，您是否了解該房產的上限利率或買家興趣是多少？然後，對於您目前正在行銷的資產，有一個類似的問題，您認為您可以在哪裡出售、租賃該資產，或者潛在的買家池有哪些？

Yes, great question, Michael. The cap rate on the Barton sale was in the [high] Texas, and came in about $300 a foot, little more than $300 a foot. Look, I mean, the buyer pool is actually interesting right now. We have a number of properties in the marketplace. We have 1 or 2 properties waiting to go under firm agreement.

是的，很好的問題，麥可。巴頓出售的上限率在德克薩斯州很高，約為每英尺 300 美元，略高於每英尺 300 美元。聽著，我的意思是，現在的買家群體實際上很有趣。我們在市場上擁有許多房產。我們還有 1 或 2 處房產等待簽署正式協議。

And the -- on the standard office product, we're typically saying the small institutions, the syndicators, the well-capitalized private development redevelopment companies in the marketplace.

關於標準辦公室產品，我們通常指的是市場上的小型機構、辛迪加、資本充足的私人開發再開發公司。

So cap rates are kind of in the, I'll call it, in the 8% to 10% range for some of those more work than like products. The biggest challenge really is getting the financing in place. So we haven't really seen as much pricing pressure you would expect, unless it's really driven by, hey you need to get financing. So I think Brandywine being in a position where we can provide some bridge financing for several years and take that refinancing risk off the table, I think, puts us in a pretty good position.

因此，對於其中一些比同類產品更多的工作，我稱之為上限率在 8% 到 10% 的範圍內。最大的挑戰確實是融資到位。因此，我們並沒有真正看到您所期望的那麼大的定價壓力，除非它確實是由「嘿，您需要獲得融資」所驅動的。因此，我認為 Brandywine 能夠在幾年內提供一些過渡融資，並消除再融資風險，這讓我們處於一個非常有利的位置。

For example, we have a couple of properties we have on the market in Northern Virginia. We've had, in one case, over 40 investors signed the NDA with about 10 different tours. We have another project where we had 75 CA signed with tours occurring on almost a daily basis. So there seems to be still a fair amount of interest in buying properties, the major gating issue that I think we're all facing is just how we can facilitate the debt side of their equity investment.

例如，我們在北維吉尼亞州的市場上有幾處房產。在一個案例中，超過 40 名投資者與大約 10 個不同的旅遊團簽署了保密協議。我們還有另一個項目，我們有 75 個 CA 簽約，幾乎每天都有旅行。因此，似乎仍然有相當多的人對購買房產感興趣，我認為我們都面臨的主要問題是我們如何促進其股權投資的債務方面。

And I think really depending upon how the interest rate climate goes and the commercial banks and life insurance companies, that will dictate whether to get some of these sales done, we need to do some bridge financing.

我認為，實際上取決於利率環境以及商業銀行和人壽保險公司的情況，這將決定是否完成其中一些銷售，我們需要進行一些過渡融資。

Great. Then maybe one on the leasing side. Can you maybe comment on sort of how concessions have been trending in your markets? And kind of a sense of what tenants are out in the market right now and sort of what they're looking for in terms of space requirements?

偉大的。然後也許是租賃方面的一個。您能否評論一下您所在市場的優惠趨勢？了解目前市場上有哪些租戶以及他們在空間需求方面正在尋找什麼？

Yes. Sure, Michael. This is George. I'd be happy to take that one. I mean, TIs have remained relatively constant. We've seen a little bit of pressure on unit costing. But the overall package and again, we look at the concession as a combination of both abatement and TI. So we have seen a little bit of a shift more towards abatement. And we obviously try and limit that to just a fixed rent as opposed to the operating expense pass-throughs.

是的。當然，邁克爾。這是喬治。我很樂意接受那個。我的意思是，TI 保持相對穩定。我們已經看到單位成本面臨一些壓力。但總體而言，我們將優惠視為減排和 TI 的結合。因此，我們看到了一點點向減排方向的轉變。顯然，我們試圖將其限制為固定租金，而不是營運費用轉嫁。

Commissions have remained unchanged. And so overall, net effective rents, we continue to see growth, especially in Philadelphia, University City and in Radnor, more challenging given the dynamic in Austin on net effective rent growth.

佣金不變。因此，總體而言，淨有效租金持續成長，特別是在費城、大學城和拉德諾，考慮到奧斯汀淨有效租金成長的動態，更具挑戰性。

Our next question comes from the line of Michael Lewis with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Michael Lewis。

Great. My first question is about -- Jerry, you talked about the dividend cut or maybe the question is really about cash flow, right? The new dividend payment looks to me it's about 60% of your third quarter CAD. Even at the old payment, it only would have been 76%. So your stocks trade at a 15% yield with 60% coverage to spot at 3Q. .

偉大的。我的第一個問題是——傑瑞，你談到了股息削減，或者也許問題實際上是關於現金流，對嗎？在我看來，新的股息支付約為第三季加幣的 60%。即使按照原來的付款方式，也只有 76%。因此，您的股票交易收益率為 15%，第三季現貨覆蓋率為 60%。 。

So the question is the markets -- with the yield that high in coverage that appears comfortable, the market's not really buying this. And so is the dividend cut -- is it as simple as you save $28 million and you have good usage for that on development and delevering? Or is this an expectation that cash flow is still going down and you got ahead of this coverage getting really tight?

所以問題在於市場——雖然收益率如此高的覆蓋率看起來很舒服，但市場並不真正相信這一點。股息削減也是如此——是否像節省 2800 萬美元那麼簡單，並且可以很好地將其用於發展和去槓桿化？或者這是現金流量仍在下降的預期，而您在保險覆蓋範圍變得非常緊張之前就已經做好了準備？

Michael, let me be real clear. Our cash flow is strong. The coverages that we've talked about are in very good shape. This was a deliberate review that the Board and management went through in taking a look at really the -- as I touched on my comments, really the volatility and unpredictability of the capital markets.

邁克爾，讓我說清楚。我們的現金流強勁。我們談到的覆蓋範圍非常好。這是董事會和管理層經過深思熟慮的審查，以真正審視資本市場的波動性和不可預測性——正如我談到我的評論一樣。

The fundamental reality is there's a lot of economic uncertainty out there. There's a lot of geopolitical risk. No one's sure where interest rates are going to go. No one's sure what the state of the labor market is. So I think the Board took a hard look at our forward projections. And in thinking about a reset dividend, one is to set it at a level that provided bulletproof coverages for us, send a strong signal that we were -- that we recognized the volatility of the uncontrollability in those capital markets, but also set a firm foundation point where that revised dividend covered or taxable income distribution requirements.

基本現實是存在著許多經濟不確定性。地緣政治風險很大。沒有人確定利率會走向何方。沒有人知道勞動市場的狀況如何。因此，我認為董事會認真審視了我們的前瞻性預測。在考慮重置股息時，一個是將其設定在一個為我們提供防彈覆蓋範圍的水平，發出一個強烈的信號，即我們認識到這些資本市場的不可控性的波動性，但也設定了一個堅定的目標修訂後的股利涵蓋或應稅所得分配要求的基點。

And really set a firm foundation point for that dividend to hopefully grow as the capital markets showed more sign of stability or predictability and our cash flows continue to increase. So if anything, it was a signal that recognize the realities of the current capital markets not a harbinger that was concerned about where our cash flows were going. So I want to be very clear on that.

隨著資本市場顯示出更多穩定性或可預測性跡像以及我們的現金流繼續增加，這確實為股息有望成長奠定了堅實的基礎。因此，如果有什麼不同的話，那就是這是一個認識到當前資本市場現實的訊號，而不是一個擔心我們現金流去向的預兆。所以我想澄清這一點。

Okay. Great. And then second for me, these 8 properties with high vacancy on Page 4 of our supplemental, 300 Delaware stands out. But is there any detail, specific detail on the plan for that asset or for anything else on that list that you think might be helpful to know in terms of addressing these properties, which are driving a large part of the vacancy in the portfolio.

好的。偉大的。其次，對我來說，我們的補充資料 300 Delaware 第 4 頁上的這 8 個空置率很高的房產非常引人注目。但是，該資產的計劃或該清單上的其他任何內容是否有任何細節、具體細節，您認為這些細節可能有助於了解這些資產，這些資產導致了投資組合中的很大一部分空缺。

Yes. Great question. Thanks, Michael. Look, we laid out those 8 properties. And as you know, the 3 of them -- actually, 4 of them really because it too light is really kind of properties in Austin. So I think in Austin, the real focus for us is accelerating leasing. So we have a number of really talented leasing folks down there.

是的。很好的問題。謝謝，麥可。看，我們列出了這 8 個屬性。正如你所知，他們中的 3 個——實際上，他們中的 4 個真的是因為它太輕了，這確實是奧斯汀的一種房產。所以我認為在奧斯汀，我們真正的重點是加速租賃。所以我們有很多非常有才華的租賃人員。

Great top executives. They've all gotten involved very, very -- even more so than the past in really sourcing deals. We've reached out to brokers for incentive programs. And in one of those properties, frankly, it's very, very well located we are taking a look at whether there is a residential conversion opportunity on a couple of buildings in that complex.

偉大的高階管理人員。他們都非常非常地參與真正的採購交易，甚至比過去更多。我們已聯繫經紀人以獲得激勵計劃。坦白說，在其中一處房產中，位置非常非常好，我們正在研究該綜合體中的幾棟建築是否有住宅改建的機會。

But Austin is primarily pedal to the metal. Let's get through this moment of disequilibrium in the marketplace as tenants return to the marketplace for space, let's make sure these buildings look great. They're positioned well. They're well staffed, great talent at the ground level and let's get them leased up. So that's really the focus there.

但奧斯汀主要是全力以赴。當租戶返回市場尋找空間時，讓我們度過市場不平衡的時刻，讓我們確保這些建築物看起來很棒。他們的位置很好。他們人員配備齊全，基層人才濟濟，讓我們租用他們。這確實是重點。

When we take a look at it 1676 International, as you know, that building has been a great redevelopment for us. The market has not performed as well as we hoped it would. And that property along with some of our other assets in the Northern Virginia market, we do with sale candidates in the near term.

如您所知，當我們看一下 1676 International 時，這座建築對我們來說是一次偉大的重建。市場的表現並沒有我們所希望的那麼好。該房產以及我們在北維吉尼亞市場的其他一些資​​產，我們將在短期內與銷售候選人合作。

401 Plymouth, George, touched on in one of the other questions, which is we just had a tenant give us space back there, that's top of the market. The game plan there is to re-lease that space. Cira Centre, that's on there because of the give back this quarter. But that space is all part of our converting this building from purely office to the lower 9 floors being life science. So as you can see there, we've even pre-leased 22,000 square feet of that space.

401 Plymouth, George 在另一個問題中提到，我們剛剛有一位租戶給了我們那裡的空間，那是市場的頂部。那裡的計劃是重新出租該空間。 Cira 中心，因為本季的回饋而在那裡。但這個空間是我們將這棟建築從純粹的辦公空間轉變為下面 9 層生命科學空間的一部分。正如您所看到的，我們甚至預租了 22,000 平方英尺的空間。

300 Delaware is an interesting dilemma for us. It's a property in downtown Wilmington. We really have at least any space in that building for a number of years because the lease terms just aren't economic.

300 特拉華州對我們來說是一個有趣的困境。這是威爾明頓市中心的一處房產。多年來，我們確實至少在那棟大樓裡擁有任何空間，因為租賃條款並不經濟。

The floor plate sizes are around 15,000 square feet plus or minus. The existing zoning provides for residential and office use. So that is a build and we're looking at a potential residential conversion and a tenant move-out plan over the next several years, that would be a project that Brandywine could undertake or simply sell it based up on the conversion plan that we put in place. But that's a project we do not anticipate investing any significant additional capital income. Was that helpful? Does that answer your question?

樓板尺寸約 15,000 平方英尺上下。現有的分區規定為住宅和辦公室用途。這就是一個建築，我們正在考慮未來幾年潛在的住宅改建和租戶搬出計劃，這將是 Brandywine 可以承接的項目，或者只是根據我們提出的改建計劃出售它到位。但我們預期這個項目不會投入任何大量的額外資本收入。這樣有幫助嗎？這是否回答你的問題？

That's helpful.

這很有幫助。

Our next question comes from the line of Dylan Burzinski with Green Street Advisors.

我們的下一個問題來自 Green Street Advisors 的 Dylan Burzinski。

Just curious, you mentioned several times bridge financing or seller financing or whatever you want to call it. But just curious, what would be the LTV that you guys would be willing to offer in this sort of structure?

只是好奇，您多次提到橋融資或賣方融資或任何您想稱之為的名稱。但只是好奇，你們願意在這種結構中提供多少生命週期價值？

Yes. I think in that framework, anywhere kind of between 50% and 75%, depending upon the project, the quality of the buyer and our convertibility capacity to the extent the loan doesn't perform. So but that seems to be the pretty safe range Dylan, somewhere in that 50% to 75% range.

是的。我認為在這個框架中，介於 50% 到 75% 之間，具體取決於專案、買方的品質以及我們在貸款無法履行的情況下的兌換能力。所以，迪倫，這似乎是相當安全的範圍，在 50% 到 75% 的範圍內。

Okay. That's helpful. And then I guess just touching on the expense side of things. You mentioned lower expenses in the quarter. I guess, just how should we be thinking about that looking into 2024. Should we expect to continue to receive relief on this front? Or should there -- we returned to a more normalized environment heading into 2024?

好的。這很有幫助。然後我想只是觸及費用方面。您提到本季的支出減少。我想，展望 2024 年，我們應該如何考慮這一點。我們是否應該期望繼續在這方面獲得緩解？或者說，進入 2024 年，我們是否應該回到更正常化的環境？

Yes. Dylan, it's George. I mean, I think probably a little bit of a continuation. We continue to aggressively appeal and challenge real estate tax assessments. So I do think we maybe have some opportunities still there. Utilities, our teams have just done a good job to kind of managing that consumption load and some of our negotiated contracts on forward purchase agreements have benefited the portfolio. We've got a little bit of seasonality coming up for the fourth quarter, so we'll start to get into the potential for snow removal that hasn't existed thus far. But year-over-year, I would think there's certainly a lot of focus on our property management teams to maintain, if not reduce expenses across the board.

是的。迪倫，是喬治。我的意思是，我認為可能有一點延續。我們繼續積極呼籲和挑戰房地產稅評估。所以我確實認為我們也許仍然有一些機會。公用事業方面，我們的團隊剛剛在管理消耗負載方面做得很好，而且我們的一些遠期購買協議談判合約使投資組合受益。第四季將出現一些季節性變化，因此我們將開始研究迄今為止尚未存在的除雪潛力。但與去年同期相比，我認為我們的物業管理團隊肯定需要大量關注來維持（即使不是全面減少開支）。

And Dylan, I'll just add on. I mean we're doing the same thing on the construction side. I mean, the reality is, if you think about it, overall leasing velocity is down, not just in Brandywine, but in the markets. A lot of general contractors are looking for work. So we're able to kind of get better buying power given the size of our asset base here, particularly in Philadelphia, to drive better GC fees, better general conditions, do some forward procurement programs.

迪倫，我補充一下。我的意思是我們在建築方面也在做同樣的事情。我的意思是，現實是，如果你仔細想想，整體租賃速度正在下降，不僅在布蘭迪萬，而且在市場上。許多總承包商正在尋找工作。因此，考慮到我們這裡的資產基礎規模，特別是在費城，我們能夠獲得更好的購買力，以推動更好的GC費用，更好的一般條件，執行一些遠期採購計劃。

So really, one of the real green shoots this year has been our ability to really maintain very strong control over our capital spend which I think really helps drive those net effective rent. So I think a combination of the really great work our operating teams do every day to make sure that we ever improve our margins in a challenging environment, that we expect to be a continual trend line. And certainly, as the pace of overall construction slows, we think we'll be in even a stronger position to leverage our buying power in our core markets to drive even better cost modules from our outside general contracting firms.

所以說，今年真正的萌芽之一是我們有能力真正保持對資本支出的強有力控制，我認為這確實有助於推動淨有效租金。因此，我認為我們的營運團隊每天所做的真正出色的工作相結合，以確保我們在充滿挑戰的環境中不斷提高利潤率，我們預計這將成為一條持續的趨勢線。當然，隨著整體建設步伐放緩，我們認為我們將處於更有利的地位，可以利用我們在核心市場的購買力，從我們的外部總承包公司推動更好的成本模組。

Our next question comes from the line of Upal Rana with KeyBanc.

我們的下一個問題來自 Upal Rana 與 KeyBanc 的合作。

Tom, your prepared remarks on the Schuylkill Yards lease-up was helpful, but could you expand further on that project? Any LOIs on the office portion you hope to get to the finish line in the near term? Any timing on the residential lease-up? And if you can provide any numbers on the impact on the capitalized interest burn off, that would be helpful.

湯姆，您準備好的關於斯庫爾基爾庭院租賃的評論很有幫助，但是您能否進一步擴展該項目？您希望在短期內完成辦公部分的任何意向書嗎？住宅租賃有什麼時間安排嗎？如果您能提供有關資本化利息消耗影響的任何數據，那將會很有幫助。

Yes. Well, I'll touch base on just what I talked about with...

是的。好吧，我會根據我所談論的內容來談談...

Tom and I sound very much alike...

湯姆和我聽起來很像…

I guess I'll touch on what I said in the remarks. Yes, we -- as we bring the developments online, we're going to be experiencing a lease-up phase. And with the multifamily, that's going to be brought in over time. But for the first year, we expect to slowly bring up the operating results for the residential. That will be both here and when we eventually have Uptown ATX residential started.

我想我會談談我在評論中所說的話。是的，當我們將開發項目上線時，我們將經歷租賃階段。對於多戶住宅來說，隨著時間的推移，這一點將會被引入。但第一年，我們預計住宅的經營業績將慢慢提升。當我們最終啟動 Uptown ATX 住宅時，這一切都會發生。

When that happens, we're going to have some operating losses as we bring those properties on. So that's going to be one phase of it.

當這種情況發生時，我們在啟用這些資產時將會出現一些營運損失。這將是其中的一個階段。

Two, you begin to reduce interest capitalization as more and more of the units become available for lease. And then number three, we have our preferred equity partner costs that also are phased in on a similar manner. So those costs over the first 2, 3, 4 quarters are going to be at a level that will hopefully decrease as we get closer to stabilization. So that's how I think we look at the rollout of some of the JVs, especially on the multifamily side.

第二，隨著越來越多的單位可供租賃，您開始減少利息資本化。第三，我們的優先股權夥伴成本也以類似的方式分階段實施。因此，隨著我們接近穩定，前 2、3、4 個季度的成本將有望降低。這就是我認為我們如何看待一些合資企業的推出，特別是在多戶住宅方面。

As you look at the office side, until we can lease the square feet, it's a little more -- it's a little simpler. We have -- we basically have 1 year from substantial completion to lease up that space. So again, that's more of a future thing and Jerry can touch more on the pipeline and what he's seeing there.

當你看看辦公室方面，在我們可以租用平方英尺之前，它會多一點——它會簡單一點。我們基本上有一年的時間從實質完工開始租賃該空間。再說一次，這更多的是未來的事情，傑瑞可以更多地接觸管道和他在那裡看到的東西。

But after the 1 year, then it does become an operational asset regardless of lease-up. So our goal, as we've said, is to get the leasing completed. So as we roll into that 1-year window and we start to look at that operational property come online that we've done our best to get the revenue start, but that will occur. Again, we have a year to do that from an office standpoint. And as leases come on, we just turn on that portion of the building from an operation point of view.

但一年後，無論租賃如何，它都會成為營運資產。因此，正如我們所說，我們的目標是完成租賃。因此，當我們進入一年期窗口時，我們開始關注上線的營運資產，我們已盡最大努力來開始收入，但這將會發生。同樣，從辦公室的角度來看，我們有一年的時間來做到這一點。隨著租約的簽訂，我們只需從營運的角度打開建築物的部分。

Yes. And Upal, let me just add on to Tom's good comments. I think on the pipeline, the really near-term focus is on 3025. That's pretty much delivered at this point. We have a number of residential that won't really deliver for the next couple of months. But the activity levels are very good. I mean, I think we've been very pleased with the progress on the residential. We've had -- there's tours taking place every day, including the weekends.

是的。烏帕爾，讓我補充一下湯姆的好評。我認為在管道上，近期真正的重點是 3025。目前已經基本交付。我們有一些住宅在接下來的幾個月內不會真正交付。但活動水準非常好。我的意思是，我認為我們對住宅的進展非常滿意。我們每天都有旅行團，包括週末。

The leasing team there is doing just a rock star job of getting tenants qualified and leases executed. So as I mentioned, we're in the low 60s in terms of leases signed, which is right in line with what we're hoping for. And rates are holding in there. We had to do some preconstruction opening rent concessions. They're pretty much all burning off. So we're very much in line with our pro forma there.

那裡的租賃團隊在讓租戶獲得資格並執行租約方面做得非常出色。正如我所提到的，就簽署的租約而言，我們處於 60 多歲的水平，這與我們的期望相符。且利率維持不變。我們不得不在開工前做一些租金優惠。它們幾乎都被燒毀了。所以我們與我們的預估非常一致。

I will tell you, on the commercial side, we did sign the one lease with Goodwin Procter. We have picked up a whole new listing of prospects in the last quarter. Those tenants range everywhere from 10,000 square feet up through over 100,000 square feet. So very pleased with the pipeline there.

我會告訴你，在商業方面，我們確實與 Goodwin Procter 簽署了一份租約。上個季度我們收到了一份全新的潛在客戶名單。這些租戶的面積從 10,000 平方英尺到超過 100,000 平方英尺不等。對那裡的管道非常滿意。

[Asset] building is done, the lobby's done, furniture's in, parking is completed, amenity floor is done. The building really does present a very attractive showcase. So the leasing team is doing more and more towards every day. So while we don't have anything under LOI or in lease negotiations, we have a number of proposals being exchanged and a number of substantive discussions.

[資產]建築已完工，大廳已完工，家具已完工，停車場已完工，便利設施樓層已完工。這座建築確實展示了一個非常有吸引力的展示。所以租賃團隊每天都在做越來越多的事情。因此，雖然我們在意向書或租賃談判中沒有任何內容，但我們正在交換一些提案並進行一些實質討論。

Same thing on 3151, which is, again, not going to be delivered until later in '24. And we just pop the seal off the other day. So it's a really hard hat tours up to just the first few levels. But the activity level there has picked up as well. The Life Science market is showing some signs of recovery. There's more tenants in the marketplace. The rate environment has created a dynamic where there's not as many new projects on the horizon as there was geared to be a couple of years ago. And those tenants that we're talking to at 3151 range in the 50,000 to 125,000 square foot range. So good size tenants, again. Proposals being exchanged, nothing signed at this point.

3151 也是如此，同樣要到 24 年晚些時候才會交付。前幾天我們才把封條打開。所以這只是前幾個級別的真正安全帽之旅。但那裡的活動水準也有所回升。生命科學市場正在顯示出一些復甦的跡象。市場上的租戶更多了。利率環境創造了一種動態，即將出現的新項目並不像幾年前那麼多。我們正在討論的 3151 租戶的面積在 50,000 到 125,000 平方英尺之間。再次，規模如此大的租戶。正在交換提案，目前尚未簽署任何協議。

Uptown ATX, the residential won't really deliver until the latter half of next year. So it's still a bit too early to tell. The business plan there looks good. Market dynamics seem solid. And on the commercial side, that market is, I touched on, remains slow, but we do have a number of prospects that we are doing tours and having discussions with. So hopefully, that provides you a little more color than with the prepared comments.

Uptown ATX，該住宅要到明年下半年才能真正交付。所以現在說還太早。那裡的商業計劃看起來不錯。市場動態似乎很穩定。在商業方面，我提到，這個市場仍然緩慢，但我們確實有很多潛在客戶，我們正在參觀並與之討論。希望這能為您提供比準備好的評論更多的色彩。

Great. That was very helpful. And just one quick last one for me. What was the $11 million impairment related to?

偉大的。這非常有幫助。對我來說，這只是最後一件事。 1100 萬美元的減損與什麼有關？

We looked at one of our assets, some of them are in use impairments that we take at a couple of property levels as we start to assess whether we're going to sell those assets or not. So that is not related to 3 part. Last quarter, we did take an impairment on 3 Barton ahead of that sale. This is impairment on assets that we are taking a look at as possible sale candidates.

我們查看了我們的一項資產，其中一些資產正在使用中，當我們開始評估是否要出售這些資產時，我們會在幾個財產層級上進行減損。所以這與第 3 部分無關。上個季度，我們在出售 3 Barton 之前確實對 3 Barton 進行了減值。這是我們正在考慮作為可能的出售候選資產的減值。

That concludes today's question-and-answer session. I'd like to turn the call back to Jerry Sweeney for closing remarks.

今天的問答環節到此結束。我想將電話轉回給傑瑞‧斯威尼 (Jerry Sweeney)，讓其致閉幕詞。

Great, Liz. Thank you for your help today. And thanks to all of you for participating in our third quarter earnings conference call, and we look forward to updating you on our business plan progress after the first of the year. So thank you very much.

太棒了，莉茲。感謝您今天的幫助。感謝大家參加我們的第三季財報電話會議，我們期待在今年第一季後向您通報我們的業務計劃進度。非常感謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。