Brandywine Realty Trust (BDN) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Brandywine Realty Trust First Quarter 2024 Earnings Call.

美好的一天，感謝您的支持。歡迎參加 Brandywine Realty Trust 2024 年第一季財報電話會議。

(Operator Instructions)

（操作員說明）

Please be advised, today's conference is being recorded.

請注意，今天的會議正在錄製中。

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

現在我想把今天的會議交給主席兼執行長 Jerry Sweeney 發言。請繼續。

Kevin, thank you very much. Good morning, everyone, and thank you for participating in our first quarter 2024 earnings call. On today's call with me are George Johnstone, our Executive Vice President of Operations; Dan Palazzo, Senior Vice President and Chief Accounting Officer; Tom Wirth, our Executive Vice President and Chief Financial Officer.

凱文，非常感謝你。大家早安，感謝您參加我們的 2024 年第一季財報電話會議。與我一起參加今天電話會議的是我們的營運執行副總裁 George Johnstone； Dan Palazzo，資深副總裁兼首席會計官； Tom Wirth，我們的執行副總裁兼財務長。

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 assurance 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 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。

First and foremost, we thank you for participating and hope that you and yours are well and looking forward to a successful and ever-improving 2024.

首先，我們感謝您的參與，並希望您和您的家人一切順利，並期待 2024 年取得成功和不斷進步。

During our prepared comments, we'll briefly review first quarter results and the progress on our '24 business plan. Tom will then briefly review first quarter financial results and frame out the key assumptions driving our 2024 guidance. After that, Dan, George, Tom and I are available for any questions. But prior to addressing the quarter in our '24 business plan in any detail, we did want to address the key themes that guide our thinking every day. From a business risk management standpoint, our focus is really on 3 key areas: liquidity, development lease-up and portfolio stability.

在我們準備好的評論中，我們將簡要回顧第一季的業績以及我們 '24 業務計劃的進展。然後，Tom 將簡要回顧第一季的財務業績，並製定推動我們 2024 年指導的關鍵假設。之後，丹、喬治、湯姆和我可以回答任何問題。但在詳細討論我們 24 小時業務計劃中的季度之前，我們確實想討論指導我們每天思考的關鍵主題。從業務風險管理的角度來看，我們的重點其實是三個關鍵領域：流動性、開發租賃和投資組合穩定性。

First, on liquidity. As we will outline in both my comments and Tom's, our recent bond issuance cleared the decks on any additional bond maturities through 2027. As such, we do anticipate maintaining minimal balances on our line of credit over the next several years to ensure continued ample liquidity for the company. On our operating joint ventures, we have several nonrecourse mortgages still in negotiations. While those discussions are taking longer than we originally planned, we do anticipate constructive outcomes that will improve both our balance sheet and our revenue stream.

首先，關於流動性。正如我們將在我的評論和湯姆的評論中概述的那樣，我們最近的債券發行為2027 年之前的任何額外債券到期做好了準備。的最低餘額，以確保持續充足的流動性為公司。在我們經營的合資企業中，我們有幾項無追索權抵押貸款仍在談判中。雖然這些討論花費的時間比我們最初計劃的要長，但我們確實預計會取得建設性成果，這將改善我們的資產負債表和收入來源。

Second, on development and lease-up. We are within several quarters of having our entire development pipeline fully delivered. As I will note later, the pipeline on all projects continues to build with both number of tours and issued proposals increasing during the quarter. Each of these projects are top of their market attracted to a broad range of customers, and we remain confident of hitting our targeted return on cost. We certainly recognize both the earnings drag and the balance sheet impact of carrying $260 million of non-revenue-producing capital and continue our aggressive marketing efforts on every project.

第二，關於開發和租賃。我們將在幾個季度內全面交付整個開發流程。正如我稍後將指出的，所有專案的籌備工作都在繼續進行，本季參觀次數和發布的提案數量均有所增加。這些項目中的每一個都是其市場的佼佼者，吸引了廣泛的客戶，我們仍然有信心實現我們的目標成本回報。我們當然認識到持有 2.6 億美元非創收資本對盈利的拖累和對資產負債表的影響，並繼續在每個項目上積極開展行銷工作。

To the upside, upon stabilization, these projects will generate approximately $54 million of additional GAAP NOI or a 15.5% increase to our existing revenue stream, so they do remain a key growth driver for our company. Finally, looking at portfolio stability, continued strong operating metrics reflect the underlying stability of our core portfolio. While our 80% occupied Austin portfolio will face near-term challenges, fundamental growth dynamics in that market remain, and we will be a strong participant in that market's recovery.

從好的方面來看，穩定後，這些項目將產生約 5,400 萬美元的額外 GAAP NOI 或使我們現有的收入流增加 15.5%，因此它們仍然是我們公司的關鍵成長動力。最後，從投資組合的穩定性來看，持續強勁的營運指標反映了我們核心投資組合的潛在穩定性。雖然我們 80% 的奧斯汀投資組合將面臨近期挑戰，但該市場的基本成長動力仍然存在，我們將成為該市場復甦的有力參與者。

Philadelphia, which has one of the lowest vacancy rates among largest cities in the country continues to perform well, and our 94% leasing level and occupancy level of 91% reinforce that point. Looking ahead, we have less than 6% of annual rollover through 2026. Our 2024 revenue plan is running ahead of schedule. Our mark-to-market capital ratios and Same Store numbers all continue to perform at relatively strong levels as they have done over the past couple of years.

費城是全美最大城市中空置率最低的城市之一，其 94% 的租賃水準和 91% 的入住率進一步證明了這一點。展望未來，到 2026 年，我們的年度展期率將低於 6%。我們的按市值計算的資本比率和同店數量都繼續保持在過去幾年相對強勁的水平。

We fully recognize the challenges facing the commercial real estate space and have taken and will continue to take the steps necessary to ensure strong performance on our '24 business plan as well as achieving our longer and intermediate-term growth objectives. With that overview, the first quarter has gotten the year off to a great start, results were in line with our '24 business plan.

我們充分認識到商業房地產領域面臨的挑戰，並已採取並將繼續採取必要措施，以確保我們的 24 小時業務計劃取得強勁業績，並實現我們的長期和中期增長目標。綜上所述，第一季為今年開了個好頭，結果符合我們 '24 的業務計劃。

A few quarterly highlights. We posted first quarter FFO of $0.24 per share, in line with consensus. Our speculative revenue range of $24 million to $25 million, is 98% complete at the midpoint. As noted, we did resolve our '24 bond maturity. And as Tom will elaborate, recently, we completed a $400 million 5-year unsecured bond offering. Proceeds will pay off our outstanding bond due October 2024, repay the small amount outstanding on line of credit and provide additional forward liquidity.

一些季度亮點。我們發布的第一季 FFO 為每股 0.24 美元，與共識一致。我們的推測收入範圍為 2,400 萬美元至 2,500 萬美元，中點已完成 98%。如前所述，我們確實解決了 24 年債券到期問題。正如湯姆將詳細闡述的那樣，最近我們完成了 4 億美元的 5 年無擔保債券發行。所得款項將償還我們於 2024 年 10 月到期的未償還債券，償還少量未償還信用額度，並提供額外的遠期流動性。

Our combined leasing activity for the quarter totaled almost 500,000 square feet. During the quarter, we executed 359,000 square feet of leases, including 101,000 square feet of new leases within our wholly-owned stabilized portfolio. Based on recent efforts with 2 of our joint ventures, we have eliminated $61.6 million of debt attribution during the quarter, which contributes towards our goal of eliminating $100 million of venture debt attribution by year-end '24.

本季我們的綜合租賃活動總計近 50 萬平方英尺。本季度，我們執行了 359,000 平方英尺的租賃，其中包括我們全資穩定投資組合內的 101,000 平方英尺的新租賃。根據最近與兩家合資企業的努力，我們在本季消除了 6,160 萬美元的債務歸屬，這有助於實現我們在 24 年底消除 1 億美元的風險債務歸屬的目標。

And as noted on Page 13 of our SIP, our '24 business plan anticipates having full availability of our line at year-end 2024. Consolidated debt is 94% fixed at a 6.1% rate. Quarterly rental rate mark-to-market was 16.9% on a GAAP basis and 3.3% on a cash basis. We did end the quarter 87.7% occupied and 89% leased, sequentially down from year-end, but very much in line with our business plan expectations. Page 4 of the supplemental highlights the high occupancy of the majority of our portfolio. It does identify 7 properties that do comprise over 50% of the company's vacancy. As noted on that page, these properties affect our occupancy numbers by over 400 basis points.

正如我們的 SIP 第 13 頁所述，我們的 24 業務計劃預計到 2024 年底我們的生產線將完全可用。以 GAAP 基準計算的季度租金率為 16.9%，以現金基準計算的季度租金率為 3.3%。本季末，我們的入住率為 87.7%，出租率為 89%，環比年末有所下降，但與我們的業務計劃預期非常一致。補充資料的第 4 頁強調了我們大部分投資組合的高入住率。它確實確定了 7 個房產，這些房產確實佔該公司空置率的 50% 以上。正如該頁所述，這些房產對我們的入住率影響超過 400 個基點。

We are implementing plans on each of the projects that we outlined on that page, ranging from accelerated leasing initiatives, capital investment programs and conversion and sale opportunities. The operating portfolio remains in very solid shape. Our forward rollover exposure through '25 has been further reduced to less than 6% and through 2026 is down to an average of 5.8%.

我們正在對該頁面概述的每個項目實施計劃，包括加速租賃計劃、資本投資計劃以及轉換和銷售機會。營運組合仍保持非常穩健的狀態。我們截至 25 年的遠期展期風險敞口已進一步降至 6% 以下，到 2026 年平均降至 5.8%。

And by renewing one of our largest near-term expiring tenants, we now have no tenant lease expiration greater than 1% of revenues through 2026. So our portfolio quality, service delivery platform and submarket positioning remain key competitive advantages. And similar to recent quarters, the quality curve thesis continues to gain strength as reflected in the overall pickup in our leasing activity. And we do continue to see encouraging signs on the leasing front as evidenced by the following metrics: physical tours increase has been very positive. First quarter physical tours exceeded fourth quarter tours by 20%, also exceeded our trailing 4 quarters average by 48% and also tour activity remains above pre-pandemic levels by over 38%.

透過續約我們最大的近期即將到期的租戶之一，到2026 年，我們的租戶租約到期數量不超過收入的1%。的競爭優勢。與最近幾季類似，品質曲線理論繼續增強，這反映在我們租賃活動的整體回升上。我們確實繼續在租賃方面看到令人鼓舞的跡象，以下指標證明了這一點：實體旅遊的成長非常積極。第一季的實體旅遊量比第四季的旅遊量高出 20%，也比過去 4 個季度的平均水準高出 48%，而且旅遊活動仍高於疫情前的 38% 以上。

On a wholly-owned basis, during the first quarter, 55% of all new leases were the result of this flight to quality. Tenant expansions continue to outweigh tenant contractions during the quarter. Our executed renewal and expansion progress has enabled us to raise our annual retention target by 600 basis points. So from 51% to 53% is a range to 57% to 59% is a new range.

在全資擁有的基礎上，第一季所有新租賃的 55% 都是這種追求品質的結果。本季租戶擴張持續超過租戶收縮。我們執行的更新和擴展進展使我們能夠將年度保留目標提高 600 個基點。因此，從 51% 到 53% 是一個範圍，57% 到 59% 是一個新範圍。

Our total leasing pipeline is up for the fourth consecutive quarter, and stands at 4.9 million square feet. Our leasing pipeline is up 400,000 square feet last quarter and stands at 2.4 million square feet on our wholly-owned portfolio. On the development projects, our pipeline is up 310,000 square feet from last quarter and stands at 2.5 million square feet.

我們的租賃總量連續第四個季度成長，達到 490 萬平方英尺。上季我們的租賃通路增加了 40 萬平方英尺，我們全資擁有的投資組合達到 240 萬平方英尺。在開發案方面，我們的待建工程面積比上個季度增加了 31 萬平方英尺，達到 250 萬平方英尺。

The existing portfolio pipeline also includes approximately 300,000 square feet in advanced stages of lease negotiations. Also, 38% of our operating portfolio yield new deal pipeline are prospects looking to move up the quality curve. And in terms of pipeline staging, which is clearly very important, proposals outstanding are up 153,000 square feet over last quarter. So that 900,000 square feet of outstanding lease proposals, and we have leases and negotiations that are up 59,000 square feet from the last quarter as well.

現有的投資組合還包括處於租賃談判後期階段的約 30 萬平方英尺。此外，我們的營運投資組合中有 38% 的新交易管道是希望提升品質曲線的潛在客戶。就管道分期而言，這顯然非常重要，未完成的提案比上個季度增加了 153,000 平方英尺。因此，有 90 萬平方英尺的未完成租賃提案，我們的租賃和談判也比上個季度增加了 59,000 平方英尺。

So very good positive trend lines on the leasing and deal conversion front. Looking at our leverage, our first quarter net debt-to-EBITDA was up to 7.9x, up from our fourth quarter number, primarily due to an increase in development and redevelopment costs and as the always expected higher first quarter G&A and lower other income.

租賃和交易轉換方面的正面趨勢線非常好。從我們的槓桿率來看，我們第一季的淨負債與EBITDA 比率高達7.9 倍，高於第四季的數字，這主要是由於開發和再開發成本的增加，以及人們一直預期的第一季度G&A 較高和其他收入較低。

Our core EBITDA metric ended the quarter at 6.8x and currently within our targeted range. Looking quickly at our joint ventures. As I mentioned, we did reduce our investment balance at year-end in one joint venture and at year-end another joint venture, our base was reduced to the scheduled first quarter cash distribution.

我們的核心 EBITDA 指標本季結束時為 6.8 倍，目前處於我們的目標範圍內。快速審視我們的合資企業。正如我所提到的，我們確實在年底減少了一家合資企業的投資餘額，而在另一家合資企業年底，我們的基礎減少到預定的第一季現金分配。

As such, we have now eliminated both joint ventures from our operating reporting metrics and we record no further operating results. This also eliminates the corresponding nonrecourse debt attribute -- nonrecourse debt, lowering our debt attribution by, as I mentioned previously, $61.6 million. And as we noted on Page 37 in the SIP, we do have 2 other operating joint ventures with loan maturities during the first half of '24. Both of those loans are secured solely by the real estate and are nonrecourse with no obligation for our partner or Brandywine to fund any additional money.

因此，我們現在已將這兩家合資企業從我們的營運報告指標中刪除，並且我們沒有記錄進一步的營運績效。這也消除了相應的無追索權債務屬性——無追索權債務，正如我之前提到的，我們的債務屬性降低了 6,160 萬美元。正如我們在 SIP 第 37 頁中指出的那樣，我們確實還有另外 2 家正在運營的合資企業，其貸款在 2024 年上半年到期。這兩筆貸款均僅由房地產作為擔保，並且是無追索權的，我們的合作夥伴或 Brandywine 沒有義務提供任何額外資金。

That being said, we do believe the ventures present valuable opportunity as the debt and real estate markets recover. And as such, along with our partners, we continue to be engaged in productive conversation with each lenders. While these discussions are progressing slower than we originally anticipated, we do expect a full resolution within the next quarter. We did, as a side note, receive a 3-month extension from our lender on Cira Square and are working with our partners to refinance that property during the extension time frame.

話雖如此，我們確實相信，隨著債務和房地產市場的復甦，這些合資企業將帶來寶貴的機會。因此，我們與我們的合作夥伴一起，繼續與每個貸方進行富有成效的對話。雖然這些討論的進展速度比我們最初預期的要慢，但我們預計在下個季度內會全面解決。附帶說明一下，我們確實從 Cira Square 的貸款機構那裡獲得了 3 個月的延期，並正在與我們的合作夥伴合作，在延期期間對該房產進行再融資。

In terms of guidance, as Tom will elaborate further, but as a result of our bond financing occurring 3 months early and being $50 million above our business plan target, we forecast an additional $0.03 per share of interest expense. Based on that higher expense, we have reduced the upper end of our FFO guidance by that $0.03. So our revised FFO guidance is now $0.90 to $0.97 per share as opposed to our initial FFO range of $0.90 to $1 per share. And based on that revised range, our $0.60 per share dividend, our FFO and CAD payout ratios were at 63% and 86%, respectively.

在指導方面，正如 Tom 將進一步闡述的那樣，但由於我們的債券融資提前 3 個月進行，並且比我們的業務計劃目標高出 5000 萬美元，我們預計每股額外增加 0.03 美元的利息費用。基於較高的費用，我們將 FFO 指導上限降低了 0.03 美元。因此，我們修訂後的 FFO 指引現在為每股 0.90 美元至 0.97 美元，而我們最初的 FFO 範圍為每股 0.90 美元至 1 美元。根據修訂後的範圍，我們的每股股息為 0.60 美元，我們的 FFO 和加元派息率分別為 63% 和 86%。

At the midpoint, our first quarter coverage ratios were better than our 2024 business plan forecast. We do still continue to expect that between $80 million and $100 million of sales during the year. As I mentioned last quarter, we do expect those sales to occur in the fourth quarter with minimal dilution. And during the year, we do plan to have about $200 million to $300 million of sales in the market for price discovery. We are targeting sales in the Met D.C. and Pennsylvania suburban marketplaces and we'll also continue to sell noncore land parcels that we did last year.

中期來看，我們第一季的覆蓋率優於 2024 年業務計畫的預測。我們仍然預計今年的銷售額將在 8,000 萬至 1 億美元之間。正如我上季度提到的，我們確實預計這些銷售將在第四季度發生，稀釋程度最小。今年，我們確實計劃在價格發現市場上實現約 2 億至 3 億美元的銷售額。我們的目標是在大都會特區和賓州郊區市場進行銷售，我們也將繼續出售去年的非核心地塊。

And looking at our developments, as I noted, our development leasing pipeline is 2.5 million square feet, which is up 14% from last quarter. We also saw an increase in the status of that pipeline. So as of now, we have 122,000 square feet under early lease negotiations, 900,000 square feet of proposals outstanding and 300,000 square feet undergoing space planning.

看看我們的開發項目，正如我所指出的，我們的開發租賃面積為 250 萬平方英尺，比上個季度增長了 14%。我們也看到該管道的狀態有所提高。截至目前，我們有 122,000 平方英尺處於早期租賃談判中，900,000 平方英尺尚未完成提案，300,000 平方英尺正在進行空間規劃。

Tour velocity continues to pick up. The commercial components of One Uptown and 3025 JFK are now delivered and those activity levels continue to increase. However, given the length of time to complete space plans, obtain permits, and construct the space, our '24 financial plan does not include any spec revenue coming from these 2 projects. To accelerate revenue recognition, however, we are building 2 floors of spec suites in each building that will be completed by midyear.

巡演速度持續加快。 One Uptown 和 3025 JFK 的商業組件現已交付，並且這些活動水平繼續增加。然而，考慮到完成空間計劃、獲得許可和建造空間的時間長度，我們的 24 年財務計劃不包括這兩個項目的任何規格收入。然而，為了加速收入確認，我們正在每棟建築中建造 2 層規格套房，將於年中完工。

In looking at the projects, specifically at 3025 JFK, on the commercial component, we remain 15% leased, but with an active pipeline totaling approximately 650,000 square feet. The delivery of the residential units continue. Activity levels on the residential front remain good. Tours are occurring daily. And we currently have about 43% of the project leased, which is a nice step up from last quarter. 3151 Market, that building is scheduled for delivery later this year, and we have a leasing pipeline that's up slightly from last quarter with 120,000 square feet in early lease negotiations.

在審視這些項目時，特別是甘迺迪機場 3025 號的商業部分，我們仍保留 15% 的租賃率，但活躍的管道總面積約為 650,000 平方英尺。住宅單元的交付仍在繼續。住宅方面的活動水平仍然良好。每天都有遊覽活動。目前我們約有 43% 的項目已出租，這比上季有了很大的進步。 3151 Market，該建築計劃於今年稍後交付，我們的租賃管道比上季度略有增加，在早期租賃談判中達到 120,000 平方英尺。

Uptown ATX Block A construction is on budget. We did slide the completion date into Q1 '24 due to a slight delay in some perimeter infrastructure work that needed to be done and effective building accessibility. Our leasing pipeline is approximately 700,000 square feet which includes a mix of prospects ranging from 5,000 square feet to 300,000 square feet. We did commence, of course, spec suites and have a second floor under advanced stages of design. The multifamily component of that project of 341 units will begin phasing in during the third quarter of '24, and we do anticipate the residential component will be about 50% pre-leased by year-end. Our next phase of B.Labs expansion at Cira Center is underway and nearing completion, and we are the final stage of lease negotiation with a single tenant for the entire eighth floor.

Uptown ATX Block A 建設符合預算。由於一些需要完成的周邊基礎設施工作和有效的建築可及性略有延遲，我們確實將完成日期推遲到了 24 年第一季。我們的租賃儲備面積約為 70 萬平方英尺，其中包括面積從 5,000 平方英尺到 30 萬平方英尺的混合前景。當然，我們確實開始了規格套房，並在設計的高級階段擁有二樓。該專案的 341 個單元的多戶住宅部分將於 2024 年第三季開始分階段投入使用，我們預計住宅部分到年底將有約 50% 預租。我們在 Cira 中心的 B.Labs 下一階段擴建工程正在進行中並即將完成，我們正與單一租戶就整個八樓進行租賃談判的最後階段。

Tom will now provide an overview of financial results.

湯姆現在將概述財務表現。

Thank you, Jerry, and good morning. Our first quarter net loss totaled $16.7 million or $0.10 per share and first quarter FFO totaled $41.2 million or $0.24 per diluted share. Our FFO results met consensus, and we have some general observations regarding the first quarter of '24, highlighting 2 variances compared to our fourth quarter guidance. Contributions from our joint ventures was $1.2 million above our reforecast, primarily due to a onetime pickup at one of our joint venture projects.

謝謝你，傑瑞，早安。我們第一季淨虧損總計 1,670 萬美元，即每股 0.10 美元，第一季 FFO 總計 4,120 萬美元，即稀釋後每股虧損 0.24 美元。我們的 FFO 結果達成了共識，我們對 2024 年第一季度有一些一般性觀察，與我們第四季度的指導相比，突出顯示了 2 個差異。我們合資企業的貢獻比我們重新預測的高 120 萬美元，主要是由於我們的一個合資項目一次性回升。

G&A totaled $11.1 million, $1.1 million above our reforecast, primarily due to higher compensation expense recognition. This quarterly variance continues to be a timing variance and we anticipate the full year number to be relatively consistent with guidance. Our first quarter debt service and interest coverage ratios were 2.5% and net debt-to-GAV was 44.1%. Our first quarter annualized core net debt-to-EBITDA was 6.9%, and our annualized combined net debt was 7.9%. Also, it was just above our range of 7.5% to 7.8%.

一般行政費用總計 1,110 萬美元，比我們重新預測的高出 110 萬美元，主要是因為補償費用確認增加。這一季度差異仍然是時間差異，我們預計全年數字將與指導相對一致。我們第一季的償債率為 2.5%，淨債務與 GAV 比率為 44.1%。我們第一季的年化核心淨債務與 EBITDA 比率為 6.9%，年化合併淨債務為 7.9%。此外，它略高於我們 7.5% 至 7.8% 的範圍。

Portfolio and joint venture changes. While we made no changes to our core portfolio this quarter, we have removed 2 of our joint ventures from our reporting metrics to reflect recent accounting treatment. The accounting treatment for those 2 ventures was based on the following considerations. As of 12/31, we wrote off our existing investment balance. Because of the write-off, we will not recognize any future income or loss from those joint ventures and that debt is nonrecourse.

投資組合和合資企業變化。雖然本季我們的核心投資組合沒有發生任何變化，但我們已從報告指標中刪除了兩家合資企業，以反映最近的會計處理。這兩家企業的會計處理基於以下考量。截至 12 月 31 日，我們沖銷了現有投資餘額。由於沖銷，我們不會確認這些合資企業的任何未來收入或損失，且該債務是無追索權的。

For financing activities, as Jerry highlighted earlier, we completed a $400 million bond offering that closed on April 12. And the issue -- with this issuance, we were able to eliminate a material near-term maturity risk with no subsequent bond maturities until November 2027, improved liquidity by increasing the bond issuance to $400 million from our anticipated $350 million, enforcing our goal of remaining an unsecured borrower and the higher proceeds helped support our objective to have our outstanding line of balance close to 0.

對於融資活動，正如Jerry 先前強調的那樣，我們完成了4 億美元的債券發行，並於4 月12 日結束。會有後續債券到期。有助於支持我們的目標，即使未償餘額線接近0。

We maintain a high percentage of our wholly-owned portfolio to be fixed. And after this issuance, we have 96% of our debt fixed at 6.1% with a weighted average maturity of 4.6 years. We're in the process of tendering for our 2024 bonds, and we'll know those results this coming Friday. The balance of the bonds that are not tendered will then be redeemed in the next 5 to 6 weeks.

我們的全資投資組合中有很大一部分是固定的。此次發行後，我們96%的債務固定為6.1%，加權平均期限為4.6年。我們正在對 2024 年債券進行招標，我們將於下週五得知結果。未投標的債券餘額將在未來 5 至 6 週內贖回。

While the bond pricing was in line with our 2024 business plan, we increased -- the increase -- this will increase interest expense by about $5 million or $0.03 per share primarily to account for the timing of the new bond issuance and the increase of the interest rate curve for our floating rate debt. As such, we lowered the upper end of our FFO guidance by $0.03.

雖然債券定價符合我們 2024 年的業務計劃，但我們增加了利息支出，這將使利息支出增加約 500 萬美元或每股 0.03 美元，主要是為了考慮新債券發行的時間和債券的增加。浮動利率債務的利率曲線。因此，我們將 FFO 指導上限下調了 0.03 美元。

With the bond transaction complete at this point, we are not pursuing a secured financing transaction. Regarding our 2024 joint venture debt maturities, as Jerry mentioned, we are working with our partners on the 2024 maturities to potentially extend the current dates with our existing lenders. We commenced marketing efforts with other lenders and have put certain properties on the market for sale to lower JV leverage. We did extend our maturing Cira Square mortgage 90 days through July 1.

債券交易現已完成，我們不尋求擔保融資交易。關於 2024 年合資企業債務到期日，正如 Jerry 所提到的，我們正在與合作夥伴就 2024 年到期日進行合作，有可能延長與現有貸方的當前日期。我們開始與其他貸款人進行行銷工作，並將某些房產放在市場上出售，以降低合資企業的槓桿率。我們確實將到期的 Cira Square 抵押貸款延長了 90 天，直到 7 月 1 日。

Looking more closely at the second quarter of 2024, we have the following general assumptions: portfolio operating company. Our portfolio level operating income will totaled approximately $74 million and be roughly in line with our first quarter results. Our FFO contribution from our unconsolidated joint ventures will total a negative $2 million in the second quarter. The sequential reduction is due to the onetime income pickup in the first quarter and commencing late in the quarter, our ATX residential operations.

更仔細觀察 2024 年第二季度，我們有以下一般假設：投資組合營運公司。我們的投資組合水準營業收入總計約為 7,400 萬美元，與我們第一季的業績大致一致。第二季度，我們未合併的合資企業對 FFO 的貢獻總額將為負 200 萬美元。連續減少是由於我們的 ATX 住宅業務在第一季和本季末開始一次性收入回升。

G&A for the second quarter will decrease to $9.5 million. The sequential improvement is consistent with our prior years and is primarily due to the timing of deferred compensation expense recognition. Total interest expense will approximate $33 million. Capitalized interest will be $3 million. Termination fees and other income will total roughly $2 million. Quarterly NOI from our net management leasing and development fees will be roughly $3 million.

第二季的一般管理費用將減少至 950 萬美元。連續改善與我們前幾年一致，主要是因為遞延補償費用確認的時間。總利息支出約 3,300 萬美元。資本化利息將為300萬美元。終止費用和其他收入總計約為 200 萬美元。我們淨管理租賃和開發費用的季度 NOI 約為 300 萬美元。

And we do expect interest and investment income will total approximately $1.2 million. That increase coming from the excess cash we will hold until the '24 bonds are paid. On tender, we generate -- we believe we'll generate a onetime net gain totaling roughly $802 million, buying the bonds back at something less than par.

我們預計利息和投資收入總計約為 120 萬美元。這一增加來自我們將持有的多餘現金，直到支付 24 年債券為止。在招標中，我們相信，以低於面額的價格回購債券，我們將產生總計約 8.02 億美元的一次性淨收益。

Land sales gains, tax provision will be not material and our share count will approximate 176 million diluted shares. Our capital plan is fairly straightforward and totals $580 million, and our CAD range remains at 90% to 95%. For our capital plan, the primary uses are going to be $70 million of development and redevelopment costs, $80 million of common dividends, $35 million of revenue maintaining, $30 million of revenue-creating CapEx, $25 million of contributions to our joint ventures and the $340 million unsecured bond redemption.

土地出售收益、稅收撥備不會產生重大影響，我們的稀釋後股票數量將約為 1.76 億股。我們的資本計畫相當簡單，總額為 5.8 億美元，加幣範圍維持在 90% 至 95%。對於我們的資本計劃，主要用途將是 7000 萬美元的開發和再開發成本、8000 萬美元的普通股息、3500 萬美元的收入維持、3000 萬美元的創收資本支出、2500 萬美元的合資企業捐款和3.4 億美元無擔保債券贖回。

Primary sources for those will be $105 million of cash flow after interest, 391 net secured loan proceeds from our bond offering. Land sales at the midpoint of $90 million and $25 million of construction loan proceeds related to 155 King of Prussia Road. Based on the capital plan outlined, cash on hand should increase roughly $31 million and our line of credit is expected to end the year undrawn, leaving full availability. We also project that our net debt-to-EBITDA will fall within the range of 7.5% to 7.8% with an increase primarily due to incremental capital spend on development projects with minimal project income by year-end.

這些資金的主要來源將是扣除利息後的 1.05 億美元現金流，以及我們債券發行帶來的 391 筆淨擔保貸款收益。與普魯士國王路 155 號相關的土地出售額為 9,000 萬美元，建築貸款收益為 2,500 萬美元。根據概述的資本計劃，手頭現金應增加約 3,100 萬美元，我們的信貸額度預計將在年底未提取，從而保持完全可用。我們也預計，我們的淨債務與 EBITDA 比率將降至 7.5% 至 7.8% 的範圍內，這一增長主要是由於到年底項目收入極低的開發項目的資本支出增加。

Our net debt-to-GAV will approximate 45%. In addition to our core net debt -- our metric of net debt-to-EBITDA, our core net debt range is 6.5 to 6.8 for the year and excludes primarily our joint ventures as well as all of our active development projects that will be completed shortly. We believe the core leverage metric better reflects the leverage of our core portfolio and eliminates our more highly leveraged joint ventures and our unstabilized development and redevelopment projects.

我們的淨債務與 GAV 比率約為 45%。除了我們的核心淨債務（我們的淨債務與 EBITDA 的指標）之外，我們今年的核心淨債務範圍為 6.5 至 6.8，主要不包括我們的合資企業以及所有將要完成的活躍開發項目不久。我們相信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較高的合資企業以及不穩定的開發和再開發項目。

During 2025, our core net debt-to-EBITDA should begin to equal our consolidated net debt-to-EBITDA as our development projects reach stabilization, and we continue to reduce exposure to our current joint ventures. We anticipate our fixed charge and interest coverage ratios of approximately 2.2%, which represents a decrease from the first quarter, primarily due to the higher forecasted interest expense from our recent unsecured bond issuance, projected capital spend and the stabilization of our joint ventures.

2025 年，隨著我們的開發案趨於穩定，我們的核心淨債務與 EBITDA 比率應開始等於我們的合併淨債務與 EBITDA 之比，並且我們將繼續減少對現有合資企業的曝險。我們預計固定費用和利息覆蓋率約為 2.2%，較第一季有所下降，這主要是由於我們最近發行的無擔保債券、預計資本支出和合資企業的穩定導致預期利息支出較高。

I now turn the call back over to Jerry.

我現在把電話轉回給傑瑞。

Great, Tom, thank you very much. So I guess the key takeaway is portfolio remains in solid shape, very minimal annual rollover exposure through '26, I think, presents a very solid foundation. We anticipate having strong mark-to-markets, continue to manage our capital spend effectively. And we do anticipate accelerating leasing velocity in both our development and our operating portfolio. So we're executing a baseline business plan that continues to improve liquidity as evidenced by our actions in the past 30 days, keeps our portfolio -- operating portfolio in a very solid footing, recognizing the challenge in leasing space.

太好了，湯姆，非常感謝你。因此，我認為關鍵的一點是，投資組合保持穩健，我認為，到 26 年為止，年度展期風險非常小，這奠定了非常堅實的基礎。我們預計將保持強勁的以市價計價，並繼續有效管理我們的資本支出。我們確實預計我們的開發和營運投資組合的租賃速度將會加快。因此，我們正在執行一項基準業務計劃，該計劃將繼續提高流動性，正如我們過去30 天內的行動所證明的那樣，使我們的投資組合——營運投資組合保持在非常堅實的基礎上，認識到租賃領域的挑戰。

We have a great team of people book on the leasing the property management front that we're in touch with our customers every day, and the pipeline continues to build and a clear focus on leasing up our development projects to generate forward earnings growth. So as usual and where we started and that we wish you and your families well.

我們擁有一支優秀的租賃物業管理團隊，我們每天都與客戶保持聯繫，並且管道不斷建立，並明確專注於租賃我們的開發項目，以產生未來的盈利增長。像往常一樣，我們從這裡開始，祝福您和您的家人一切順利。

And with that, we are delighted to open up the floor for questions. We ask that in the interest of time, you limit yourself to one question and a follow-up. So Kevin, we're prepared to answer questions at this point.

至此，我們很高興歡迎大家提問。為了節省時間，我們要求您將自己限制在一個問題和一個後續問題上。凱文，我們現在準備回答問題。

(Operator Instructions)

（操作員說明）

Our first question comes from Steve Sakwa with Evercore ISI.

我們的第一個問題來自 Evercore ISI 的 Steve Sakwa。

I guess, first, Jerry, maybe could you just elaborate a little bit more on kind of the discussions you're having, particularly on the development side, both for Austin and the Schuylkill Yards projects. I'm just curious how corporates are thinking about the economy, interest rates, we've seen in other sectors. There's a little bit of indecision making and kind of pausing on leasing activity. So I'm just curious, the proposals and pipelines have been pretty high. But obviously, you haven't converted those. And I'm just wondering kind of what the holdup is? Or is it getting those projects further to completion? Is it more just the scurliness of the economy that's keeping people at bay?

我想，首先，傑瑞，也許你可以詳細說明你正在進行的討論，特別是在開發方面，無論是奧斯汀還是斯庫爾基爾庭院計畫。我只是好奇企業如何看待經濟、利率，就像我們在其他產業看到的那樣。租賃活動存在一些猶豫不決和暫停的情況。所以我只是很好奇，提案和管道已經相當高了。但顯然，你還沒有轉換這些。我只是想知道阻礙是什麼？或者它會讓這些項目進一步完成嗎？是經濟的惡化才讓人望而卻步？

Steve, good question. Thank you. Look, I think it's a combination of a lot of the factors you mentioned. I think there's no question that leasing velocity continues to accelerate in the higher-quality properties, which obviously these developments are top of the market. And that's also juxtaposed against what we're seeing is a decline in our competitive set because of those other building owners having some financial difficulties and our strong financial stability is actually a magnet for bringing more traffic into our portfolio.

史蒂夫，好問題。謝謝。看，我認為這是你提到的許多因素的結合。我認為毫無疑問，高品質房產的租賃速度繼續加快，顯然這些開發案處於市場領先地位。同時，我們看到的是我們的競爭力下降，因為其他業主遇到了一些財務困難，而我們強大的財務穩定性實際上為我們的投資組合帶來了更多流量。

So we feel very good about the near and intermediate-term outlook for generating additional leasing prospecting through our portfolio, and our leasing teams have done an amazing job of outreach, networking to make sure that we see every possible deal that's even whispered is taking place in all of our core markets. So I think the capture of CIB is working very, very effectively.

因此，我們對透過我們的投資組合產生額外租賃勘探的近期和中期前景感到非常滿意，我們的租賃團隊在外展和網絡方面做了出色的工作，以確保我們看到每一項可能的交易，甚至是竊竊私語的交易正在發生在我們所有的核心市場。所以我認為捕獲 CIB 的工作非常非常有效。

I do think to some degree in the development projects, Steve, to your point is, until the projects were really done it was really hard to generate either a sense of urgency or a sense of true excitement. And I think that's why I mentioned we're reaching the full delivery of a number of these projects now where the lobbies are completely done, the primary landscaping is done. All the amenity spaces are in their very final stages. That captures the imagination of tenants and does create a sense of motivation on their part to kind of get leases particularly when the pipelines tend to be as strong as they are. There is no question, however, as we talked on the last call about the macro uncertainty really has continued to play into the extended cycle times that we're seeing on particularly the larger tenants.

我確實認為在某種程度上，在開發專案中，史蒂夫，就你的觀點而言，在專案真正完成之前，很難產生緊迫感或真正的興奮感。我想這就是為什麼我提到我們正在全面交付許多這樣的項目，現在大廳已經完全完工，主要的景觀美化也已經完成。所有的便利空間都處於最後階段。這激發了租戶的想像力，並確實為他們創造了一種獲得租賃的動力，特別是當管道往往像它們一樣強大時。然而，毫無疑問，正如我們在上次電話會議中談到的那樣，宏觀不確定性確實繼續影響著週期時間的延長，尤其是大型租戶。

The smaller tenants, we seem to not really be experienced that. But you're in the 100,000, 150,000 square foot larger tenant. Certainly, the macro climate, the lack of clarity on the economic picture where rates are going, certainly plays into that. That being said, as we pointed out, we're doing a lot more space planning this quarter than we did before the end of the year. We have a number of proposals outstanding that we think will gain some traction. So we do hope that in the near term, we can convert some of this pipeline to actually lease executions. Even on the spec suites we're building out, we're seeing great activity on that, that tends to be a more compressed cycle time.

對於較小的租戶，我們似乎並沒有真正經歷過這一點。但你是在 100,000、150,000 平方英尺的大租戶中。當然，宏觀環境、利率走向的經濟情勢缺乏明確性肯定會產生影響。話雖這麼說，正如我們所指出的，我們本季所做的空間規劃比年底前多得多。我們有許多尚未解決的提案，我們認為這些提案將會獲得一些關注。因此，我們確實希望在短期內，我們可以將部分管道轉換為實際的租賃執行。即使在我們正在建造的規格套件上，我們也看到了巨大的活動，這往往是更壓縮的周期時間。

But I think we're happy with the level of activity we're seeing through all 3 of the core development projects on the commercial side, anxiously pushing every possible prospect to get leases across the finish line and actually are very happy with the level of velocity we're seeing on our 3025 residential component as we're kind of moving into key leasing season with the uptick in both tour activity and lease execution there.

但我認為我們對商業方面所有 3 個核心開發項目的活動水平感到滿意，焦急地推動每一個可能的前景以完成租賃，並且實際上對隨著我們即將進入關鍵的租賃季節，隨著那裡的旅遊活動和租賃執行的增加，我們在3025 住宅部分看到了速度。

Okay. And then just one follow-up. I don't know if you can really comment on this, but I know IBM had signed a lease to move to a competitive project in the same submarket in Austin. And I'm just wondering, given the challenges of getting financing, what are the prospects or chances that and maybe the time line of maybe that deal not happening? And I guess, are there rising prospects that maybe IBM could stay in Uptown ATX?

好的。然後只有一個後續行動。我不知道你是否真的能對此發表評論，但我知道 IBM 已經簽署了一份租約，搬遷到奧斯汀同一子市場的一個競爭性項目。我只是想知道，考慮到獲得融資的挑戰，這筆交易沒有發生的前景或機會是什麼，也許還有時間安排？我想，IBM 留在 Uptown ATX 的前景是否會越來越好？

Well, look, I obviously cannot speak to either IBM's direct intentions or the other developers' financing efforts. Certainly, there's a lot of rumors in the marketplace as to whether that deal will proceed or not. What I will tell you, Steve, is we continue to track that on a regular and active basis, whether there's any change in the direction with IBM in that new location remains to be seen. Do I look at -- there are smart people on both sides of that table. If there's a way to figure out how to get that project financed, whether IBM takes more space or they reduce the size of the building. I can't speak to specific motivations on that transaction. But from our perspective, we do remain in very close touch with IBM. They have been a long time tenant of ours. Our local team has very rich and robust relationships with the senior leadership team. So we continue to monitor it. And if there's an opportunity, rest assured that we'll be there to take advantage of it.

好吧，看，我顯然無法談論 IBM 的直接意圖或其他開發人員的融資努力。當然，市場上有很多關於這筆交易是否會進行的傳言。史蒂夫，我要告訴你的是，我們將繼續定期、積極地追蹤這一情況，IBM 在新地點的方向是否有任何變化還有待觀察。我看看——桌子兩邊都有聰明人。如果有辦法弄清楚如何為該專案籌集資金，IBM 是否會佔用更多空間，或縮小建築物的規模。我無法透露該交易的具體動機。但從我們的角度來看，我們確實與 IBM 保持著非常密切的聯繫。他們是我們的長期房客。我們的當地團隊與高階領導團隊有著非常豐富且牢固的關係。所以我們繼續對其進行監控。如果有機會，請放心，我們會抓住它。

Our next question comes from Anthony Paolone with JPMorgan.

我們的下一個問題來自摩根大通的安東尼·保隆。

Jerry, you mentioned some pretty specific stats around the flight to quality. I think it was 55% moving up. Can you maybe just talk a bit about when you're seeing tenants move up the quality spectrum are they taking less space than they had before, they're trying to keep their total rent dollars the same, like are they willing to just take on more rent? Just trying to understand that behavior a bit better?

傑瑞，你提到了一些關於質量飛行的非常具體的統計數據。我認為上漲了 55%。您能否談談，當您看到租戶的品質水準提高時，他們佔用的空間比以前更少，他們試圖保持總租金不變，就像他們願意承擔一樣更多租金？只是想更好地理解這種行為嗎？

Yes, Tony. And George and I'll tag team. I think what we're seeing is a continued dynamic of employers really want to bring their employees not just back because most of them are back at this point, but kind of really position their employees in a quality work space that helps to find their brand and their culture. Very, very important to have the physical platform serve as that connective tissue between productivity, brand and culture.

是的，托尼。喬治和我將標記團隊。我認為我們看到的是雇主們真正希望讓他們的員工回來的持續動態，不僅僅是因為他們中的大多數人此時已經回來了，而是真正將他們的員工安置在一個高品質的工作空間中，這有助於找到他們的品牌和他們的文化。讓實體平台作為生產力、品牌和文化之間的結締組織非常非常重要。

So we think that's an inescapable dynamic going forward. And I think that's why you've seen such a disparity in the performance of lower quality and kind of Class A properties throughout almost every market in the country. And you've seen the same dynamic on rental rate increases. You're certainly seeing higher pressure on rental rates across the board in the higher quality properties.

所以我們認為這是未來不可避免的動力。我認為這就是為什麼你會看到全國幾乎每個市場的低品質和 A 級房產的表現有如此差異。您也看到了租金上漲的同樣動態。您肯定會看到高品質房產的整體租金壓力更大。

So real growth and effective rents in a number of our markets.

我們許多市場的實際成長和有效租金。

George, maybe you can speak to some of the things that you're seeing on the leasing front.

喬治，也許你可以談談你在租賃方面看到的一些事情。

Yes. I think, Tony, to the specific of your question, I mean I do think the prospects who are taking that flight of -- our focus on getting the right footprint is kind of their primary objective. And if the rental expense for them remains the same. They're okay paying that higher per square foot to be in the better building with those better systems. And so we're seeing that both downtown and our trophy set. We're seeing that obviously in our Radnor portfolio where we continue to see not only new tenants coming into those buildings and markets. But we're also seeing a good number of expansions occurring at the same time.

是的。東尼，我認為，對於你的具體問題，我的意思是，我確實認為那些正在搭乘這趟航班的潛在客戶——我們專注於獲得正確的足跡是他們的主要目標。如果他們的租金費用保持不變。他們願意為每平方英尺支付更高的費用來住在更好的建築和更好的系統中。所以我們看到了市中心和我們的獎盃。我們在 Radnor 投資組合中顯然看到了這一點，我們不僅繼續看到新租戶進入這些建築和市場。但我們也看到大量的擴張同時發生。

So this quarter, we renewed a 40,000 square foot tenant in Radnor, who at the same time, expanded by an additional 12,000 square feet. So already in a high-quality market at a very good rental rate for us and made the decision that they actually needed more space to get all their people back and get them back in the way they wanted them to operate their business.

因此，本季度，我們續簽了 Radnor 40,000 平方英尺的租戶，同時又擴大了 12,000 平方英尺。因此，我們已經以非常優惠的租金進入了一個高品質的市場，並做出了決定，他們實際上需要更多的空間來讓所有員工回來，並讓他們按照他們希望的方式經營業務。

And just a final point on that, Tony. Look, there's no question that tenants are really assessing how much space they need. And we're really not seeing a lot of hot desking or office sharing or reduction in workstation sizes. I think one of the contributing factors that you see sometimes -- we've certainly seen that particularly in CBD Philadelphia is that when tenants are moving from some of the older buildings the efficiency of the floor plates that we have are so much better than where they're moving out hub, so they can actually fit the same number of people with the same amount of square feet for people than kind of less -- almost less space than they had before because of the efficiency of the floor plates.

最後一點，東尼。看，毫無疑問，租戶正在真正評估他們需要多少空間。我們確實沒有看到大量的辦公桌輪用或辦公室共享或工作站尺寸的減少。我認為你有時會看到的影響因素之一 - 我們當然已經看到，特別是在費城中央商務區，當租戶從一些舊建築搬出時，我們擁有的樓板的效率比其他地方要好得多他們正在搬出樞紐，這樣他們實際上可以容納相同數量的人，但由於地板的效率，他們的空間比以前更少——幾乎比以前更少。

So look, there's no question we've seen a number of tenants, particularly law firms contract in size and that they don't need to size law libraries. They're changing some of their office space configuration. So there's clearly that dynamic taking place. But I do think that some of the situations we've seen it's really a function of floor plate and overall building efficiency and better control over operating expenses have been a major driver in the space they take.

因此，毫無疑問，我們已經看到許多租戶，特別是律師事務所縮小了規模，他們不需要擴大法律圖書館的規模。他們正在改變一些辦公空間配置。顯然，這種動態正在發生。但我確實認為，我們看到的一些情況實際上是樓板和整體建築效率的函數，以及對營運費用的更好控制是它們所佔用空間的主要驅動力。

Okay. Great. That's a lot of good color. And then just my follow-up is maybe for Tom, just kind of understand on the guidance for the year. I understand interest costs taking the top end down. Just wondering, again, if you can just crystallize why the bottom is staying where it is? And also whether or not if you look at your speculative revenue, it's still pretty early in the year and you guys have basically knocked it out. Like is there any upside from there?

好的。偉大的。這是很多很好的顏色。然後我的後續行動可能是針對湯姆的，只是了解今年的指導。我理解利息成本會降低高端。只是再次想知道，您是否可以明確為什麼底部保持在原來的位置？而且無論你是否看一下你的投機收入，現在還處於今年的早期，你們基本上已經把它淘汰了。比如說有什麼好處嗎？

Well, I'll let George handle the spec revenue. But I think on the guidance, I think we just wanted to be at least look at the range and say we want to take one side of it down and the interest expense was fairly calculable. This quarter, specifically, is going to have some double interest and that's really what's driving it. I mean, there may be a little -- if we use the line and we do have a couple of floating rate instruments. The rate curve has certainly moved out a little bit, showing less rate cuts, if any, this year.

好吧，我會讓喬治來處理規格收入。但我認為，在指導方針上，我認為我們只是想至少看看這個範圍，並說我們想把它的一側降低，而且利息費用是相當可計算的。具體來說，這個季度將會有一些雙重利益，這才是真正的推動因素。我的意思是，如果我們使用這條線，而且我們確實有一些浮動利率工具，那麼可能會有一點。利率曲線肯定向外移動了一點，表明今年降息幅度較小（如果有的話）。

So we kind of left it alone for now, Tony, and then we'll see how the year progresses. We do have, as part of our business plan, some transactional activity. So we just wanted to leave the range where it was for now and see how it plays out going into the next quarter.

所以我們暫時先不管它，托尼，然後我們會看看這一年的進展如何。作為我們商業計劃的一部分，我們確實有一些交易活動。因此，我們只是想暫時保持這個範圍，看看下個季度的表現如何。

Yes. Tony, it's George again. I think on spec revenue, as we've touched on, we're 98% at the midpoint, kind of 96% at the top end of the range. I think to kind of outperform that top end, a couple of opportunities for us. One would be that tenants that have expressed the likelihood to not renew ultimately decide to maybe kick the can even if it's only for another year. So we can kind of bridge some of what was perceived to be downtime.

是的。東尼，又是喬治。我認為就規格收入而言，正如我們所提到的，我們 98% 處於中點，96% 處於範圍的高端。我認為要超越高端，我們有一些機會。其中一種情況是，那些表示可能不續約的租戶最終決定放棄，即使只是再續約一年。因此，我們可以彌補一些被認為是停機的情況。

The other thing is we've got a number of spec suites already in the portfolio. Just every region has maybe 4 to 5 existing spec suites that are basically plug and play. So all we need somebody to do is select the building and they can immediately move in and start to generate revenue for us as opposed to normal vacancy where we're going to have to go through a permitting process, a build process after we get the prospect and negotiate the lease. And already kind of being, call it, May 1, the calendar is quickly closing in terms of additional revenue for 2024.

另一件事是我們的產品組合中已經有許多規格套件。每個地區可能有 4 到 5 個基本即插即用的現有規格套件。因此，我們需要有人做的就是選擇建築物，他們可以立即入住並開始為我們創造收入，而不是正常的空置，我們必須經過許可流程，在我們獲得許可後進行建設流程前景並協商租賃。 5 月 1 日，2024 年額外收入的日曆很快就結束了。

Our next question comes from Michael Griffin with Citi.

我們的下一個問題來自花旗銀行的麥可‧格里芬。

I wanted to go back to Uptown ATX for a bit. I saw in the supplemental, the stabilization was pushed out by a quarter. Can you maybe give some more color as to why this was the case and the property is about 350,000 square feet or so, what size tenant would you need to see take down a large chunk of space to kind of justify your thoughts around hitting those stabilized yields?

我想回到Uptown ATX 待一會兒。我在補充中看到，穩定期被推遲了四分之一。您能否提供更多資訊來解釋為什麼會出現這種情況，該物業大約有 350,000 平方英尺左右，您需要多大的租戶才能拆除一大塊空間，以證明您對打擊那些穩定的想法的合理性產量？

Well, as I mentioned, the pipeline now is -- Michael, has tenants ranging from 5,000 square feet up to several hundred thousand square feet. So certainly, the larger the tenanted size, the quicker we can stabilize. But I think given the pipeline that we are seeing the increase in tour velocity, the number of proposals we put -- we have issued -- we do think that, that's a realistic goal for us to achieve.

嗯，正如我所提到的，現在的管道是 - 邁克爾，擁有從 5,000 平方英尺到數十萬平方英尺不等的租戶。因此，當然，租賃規模越大，我們穩定的速度就越快。但我認為，考慮到我們看到巡演速度的增加、我們提出的提案數量——我們已經發布——我們確實認為，這是我們要實現的現實目標。

Obviously, we'll continue to monitor that the marketplace is clearly a disequilibrium right now between a lot of supply coming online and a real pullback in demand. I mean, this is the first quarter in a few where there's actually been positive absorption in the marketplace.

顯然，我們將繼續監控市場目前在大量供應和需求實際回落之間明顯不平衡的情況。我的意思是，這是市場實際上出現積極吸收的幾個季度中的第一個季度。

But decided pickup in tour activity during the first quarter versus the last -- versus the third and fourth quarter of '24. So we are encouraged by the fact that a couple of large users have surfaced for that project, which were not around at the end of the year. But look, it's going to be a challenge to get space leased in Austin given the overall dynamics in that market. We do believe that the fundamental demand drivers are very strong there.

但與上一季相比，與 24 年第三季和第四季相比，第一季的巡迴活動有所回升。因此，令我們感到鼓舞的是，該專案已經出現了一些大用戶，而這些用戶在年底還沒有出現。但是，考慮到奧斯汀市場的整體動態，在奧斯汀租用空間將是一個挑戰。我們確實相信那裡的基本需求驅動因素非常強勁。

So we're comfortable with continuing to invest money in Austin. Last year, I think there's still about 135 or so people a day that moved into Austin. The business development group is analyzing a number of more than 50 different relocations. So that is a market that can -- is high beta, but can change very quickly. And we think our project is top of market in terms of its presentation, efficiency, amenity package and location. So we feel very confident that with that project now being complete, the amenity floor is done, the residential opening up soon that, that neighborhood creation that we aspire to is actually going to become a reality. And that will generate some additional leasing activity.

因此，我們願意繼續在奧斯汀投資。去年，我認為每天仍有大約 135 人搬入奧斯汀。業務開發小組正在分析 50 多種不同的搬遷方案。因此，這是一個貝塔係數較高但變化非常快的市場。我們認為我們的項目在外觀、效率、便利設施和位置方面處於市場領先地位。因此，我們非常有信心，隨著該項目現已完成，便利設施樓層已完成，住宅即將開放，我們渴望的社區創建實際上將成為現實。這將產生一些額外的租賃活動。

Yes. And then I guess the first part of my question, why was the stabilization quarter pushed out 1 quarter relative to last quarter?

是的。然後我想我的問題的第一部分是，為什麼穩定季度相對於上季度推遲了一個季度？

Yes. I think that's just our best guess at this point on how we're seeing some of these tenants sequence in, given the amount to get permits done and the amount of time to build out the space.

是的。我認為，考慮到獲得許可的數量和建造空間的時間，這只是我們目前對其中一些租戶如何排序的最佳猜測。

Got you. That's helpful. And then maybe just on the JV properties that were restructured. I believe it was Mid-Atlantic and Rockpoint, should we think about this as handing back the keys. And I think you talked about some other potential JVs that you could see debt attribution from later this year. Should we read that as the MAP venture? Or which of those JVs should we keep an eye on?

明白你了。這很有幫助。然後也許只是重組的合資企業財產。我相信這是大西洋中部和羅克波因特，我們是否應該將其視為歸還鑰匙。我認為您談到了其他一些潛在的合資企業，您可以從今年稍後看到這些合資企業的債務歸屬。我們應該將其解讀為 MAP 合資企業嗎？或者我們應該關注哪些合資企業？

Actually, a great question. And it doesn't necessarily mean that there will not be a successful restructuring of that debt. On the 2 ventures that we won't be recognizing operating results going forward. Discussions are still underway. We're not sure exactly where they will go. But as we assess the situation at the end of '24, you may recall, we wrote our basis in those properties down. Given that no investment base by Brandywine, the fact that the mortgages are completely nonrecourse, discussions are still underway that we thought it was appropriate to not recognize those as continued operations for us. That could change to the extent that there's a recapitalization that makes sense for us.

實際上，這是一個很好的問題。這並不一定意味著債務重組不會成功。對於這兩項業務，我們將不會承認未來的經營績效。討論仍在進行中。我們不確定他們到底會去哪裡。但是，當我們評估 24 年底的情況時，您可能還記得，我們​​寫下了這些屬性的基礎。鑑於 Brandywine 沒有投資基礎，而且抵押貸款完全無追索權，因此討論仍在進行中，我們認為不承認這些是我們的持續經營業務是適當的。如果資本重組對我們有意義，這種情況可能會改變。

And I think in terms of the other venture, you mentioned MAP, discussions with the lender there continue. They're moving at a slower pace than we would like. But I think the same dynamics are at play there. There, we have a negative investment base. We've reaped a significant amount of profits over the years. But until that debt restructuring is completed or we conclude collectively, it cannot be completed, I think we would continue to recognize that as an operating concern.

我認為就您提到的 MAP 而言，與貸方的討論仍在繼續。他們的移動速度比我們希望的要慢。但我認為同樣的動力也在發揮作用。在那裡，我們的投資基礎為負。這些年來我們獲得了可觀的利潤。但在債務重組完成或我們集體得出結論之前，它無法完成，我認為我們將繼續將其視為一個經營問題。

Our next question comes from Dylan Burzinski with Green Street.

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

I guess, just sort of going back to the questions on the development pipeline. As we think about the projected cash yields that you guys put in your supplemental, I mean, given the lack of leasing volume thus far, do you guys see those at risk of going lower as you start to sign leases? Or how should we be thinking about that?

我想，這只是回到有關開發流程的問題。當我們考慮你們在補充文件中提出的預期現金收益率時，我的意思是，鑑於迄今為止租賃量不足，你們是否認為隨著你們開始簽署租約，現金收益率可能會下降？或者說我們該如何思考這個問題？

A great question. Look, we assess that with every lease transaction or every proposal we put out. And I think at this point, we still feel confident that those yields will hold firm. We're seeing a slight uptick on potential TI costs. But right now, we're able to project out in our proposal. We'll get compensated for that additional rental rates. But the assessment we've made is that, yes, we will achieve those yields. Certainly, we need to make sure that as we start to execute leases, we reevaluate what the level of TI is to get those transactions done. But as of right now, given the visibility we have on all the prospects that are in the pipeline for each of those 3 commercial properties, we feel comfortable with those yields.

這是一個很好的問題。聽著，我們對每筆租賃交易或提出的每一項提案都進行了評估。我認為在這一點上，我們仍然有信心這些收益率會保持堅挺。我們發現 TI 的潛在成本略有上升。但現在，我們可以在我們的提案中進行規劃。我們將獲得額外租金的補償。但我們所做的評估是，是的，我們將實現這些收益。當然，我們需要確保當我們開始執行租賃時，我們會重新評估 TI 的等級以完成這些交易。但截至目前，鑑於我們對這 3 個商業房地產的所有前景的了解，我們對這些收益率感到滿意。

And I appreciate the comment sort of on the leasing pipeline and the increases you've seen there over the last several quarters. And I guess just pairing that with your comments on a lack of large lease maturities over the next few years. It sounds like you guys anticipate occupancy bowing sometime in 2024. Is that sort of a fair characterization? Or are we missing something?

我很欣賞對租賃管道以及過去幾季所看到的成長的評論。我想只是將這一點與您對未來幾年缺乏大量租賃到期的評論結合起來。聽起來你們預計 2024 年的某個時候入住率會下降。或者我們錯過了什麼？

I'm sorry, Dylan, you said occupancy...

對不起，迪倫，你說的是入住...

Occupancy bowing in 2020, sometime in the...

2020 年入住率將下降，...

Yes, apologies. Yes, I think so. I mean I think on a couple of different fronts. Number one, those properties that are depicted on Page 4, we do expect something to happen with those, and they've got a 400 basis point impact on occupancy today. But again, as noted, the large move-outs have fortunately been kind of put in the rearview mirror for us. Our largest rollover in '25 is the 55,000 square foot tenant that we're currently speaking with about renewal, and we have nothing over 50,000 square feet in 2026. So I think it should only be a rising tide at this point, both from where the core portfolio is today and kind of ideally moving some of these conversion and/or sale candidates kind of off the books.

是的，抱歉。是的，我想是這樣。我的意思是我從幾個不同的方面來思考。第一，第 4 頁所描述的那些房產，我們確實預期這些房產會發生一些事情，它們對今天的入住率產生了 400 個基點的影響。但正如前面提到的，幸運的是，大規模的搬遷已經被我們拋在了後視鏡中。我們在 25 年最大的展期是我們目前正在談論續約的 55,000 平方英尺租戶，而到 2026 年，我們將沒有超過 50,000 平方英尺的租戶。今天的核心投資組合是理想的，將其中一些轉換和/或銷售候選人從帳簿中移除。

Our next question comes from Omotayo Okusanya with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Omotayo Okusanya。

A quick question about the 3151 development, just curious about the status of getting the construction loan on that. And if it turns out that you may not be successful in getting that, what are kind of thoughts about future funding to complete the project?

關於 3151 開發案的一個簡單問題，只是好奇獲得建築貸款的狀況。如果事實證明你可能無法成功實現這一目標，那麼對於未來完成該專案的資金有何想法？

Sure, Tayo. This is Tom. I think on the 3151 financing, we had started a process to look at a financing and the market for construction loans has been difficult. However, I think that as we've talked about, we have a very good pipeline and as we look at some of the opportunities for an initial lease. We think that, that will give us room to then go get that financing done. We talked to a number of institutions that love the project. They just need to see a little bit of leasing done. They need to see us realize the rents as someone asks how is the yield look? And I think then we'll be able to get a loan. We put it in at 55%. I still feel that, that's a reasonable loan to cost that we can achieve. And we are starting to see a little bit of lending going on in the construction area.

當然，泰約。這是湯姆。我認為關於 3151 融資，我們已經開始了一個融資過程，而建築貸款市場一直很困難。然而，我認為正如我們所討論的，我們有一個非常好的管道，我們正在尋找一些初始租賃的機會。我們認為，這將為我們提供完成融資的空間。我們與一些喜歡該項目的機構進行了交談。他們只需要看到一些租賃完成。他們需要看到我們意識到租金，因為有人問收益率如何？我想這樣我們就能獲得貸款。我們把它設定為 55%。我仍然認為，這是我們可以實現的合理貸款成本。我們開始看到建築領域出現了一些貸款。

So we're hopeful at the lease -- the building will be sealed, and we may get a lease or 2 done, and that will give us enough room to then get a financing done. Again, the project looks great. And the lenders that we showed it to previously were very interested. They just think the pre-lease will help them get it financed internally.

因此，我們對租約充滿希望——大樓將被密封，我們可能會完成一兩次租約，這將為我們提供足夠的空間來完成融資。再說一次，這個項目看起來很棒。我們之前向其展示過的貸方非常感興趣。他們只是認為預租將有助於他們獲得內部融資。

That's helpful. And then could you just talk a little bit about how you're thinking about the dividend at this point, just kind of given some of the capital needs versus sources of capital as well?

這很有幫助。然後，考慮到一些資本需求與資本來源，您能否談談您目前對股利的看法？

Yes. Look, certainly, I think the board reviews that on a regular basis, along with management. And we did reduce it down to $0.60 a share, so about $80 million a year in total payments. I think as we looked at the decision back then and certainly as we view it today, one of the key variables was ensuring that we had a clear runway on the loan maturity front. And I think the bond transaction did a couple of things when it reinforced the fact that we can run the company with ample liquidity for the foreseeable future, keeping that line of credit close to 0.

是的。當然，我認為董事會會與管理層一起定期對此進行審查。我們確實將其降低至每股 0.60 美元，因此每年的總付款額約為 8,000 萬美元。我認為，當我們審視當時的決定以及今天的決定時，關鍵變數之一是確保我們在貸款到期方面擁有清晰的跑道。我認為債券交易做了一些事情，它強化了這樣一個事實，即我們可以在可預見的未來以充足的流動性運營公司，使信貸額度保持接近於 0。

Second, it really did reinforce to all of our fixed income stakeholders on the unsecured side that Brandywine is committed to the unsecured marketplace. And our hope is as the conditions improve, as the debt mark-to-market becomes positive versus negative, we'll be able to restore our investment-grade rating and that we wind up in a very good position, both from a liquidity and a balance sheet improvement standpoint. So I think one of the key issues we take a look at is, was that liquidity. Second was portfolio stability, what is going to be the ongoing consumption of capital.

其次，它確實向我們所有無擔保方面的固定收益利害關係人強化了 Brandywine 致力於無擔保市場的決心。我們的希望是，隨著情況的改善，隨著債務按市價計價變得積極而不是消極，我們將能夠恢復我們的投資級評級，並且我們最終處於一個非常好的位置，無論是從流動性還是資產負債表改善的觀點。所以我認為我們要考慮的關鍵問題之一是流動性。其次是投資組合的穩定性，即資本的持續消耗。

And as we've talked with other questions on the call, we have very little rollover going forward, we think a very stable platform. And then when we look at the development pipeline, there's really very little left to fund. And even to the question on the 3151 construction loan, I mean the vast majority of money is already invested to kind of deliver that build into core and shell condition. The additional capital required is, as we say in the business, good news capital to the leasing activity. So I think those 3 elements are top of mind for the Board as they think about how to balance delivering a good quarterly return to our shareholders despite the travails of the capital markets and its impact on our stock price as well as what the visibility is on liquidity and alternative investment opportunities within the company.

正如我們在電話會議中討論過的其他問題一樣，我們未來的展期很少，我們認為這是一個非常穩定的平台。然後，當我們查看開發管道時，可以找到的資金確實所剩無幾。即使是關於 3151 建設貸款的問題，我的意思是，絕大多數資金已經投入用於交付核心和外殼條件。正如我們在業界所說，所需的額外資本對租賃活動來說是個好消息。因此，我認為這三個要素是董事會的首要考慮因素，因為他們考慮如何平衡為股東提供良好的季度回報，儘管資本市場經歷了艱辛及其對我們股價的影響以及可見性的影響公司內部的流動性和另類投資機會。

Our next question comes from Upal Rana with KeyBanc.

我們的下一個問題來自 KeyBanc 的 Upal Rana。

Could you give us some color on how the lease-up at 3025 JFK revenues going? And what do you anticipate for 1 Uptown when it comes online in 3Q?

您能為我們介紹一下 3025 JFK 的租賃收入進度嗎？您對 1 Uptown 在第三季上線有何期待？

Yes. Great question. I think we're pretty pleased with the acceleration of activity at the 3025 residential project. I mean, we're kind of doing 20 units a month, which is very much in line with our plan. Effective rents are holding. And the demographic of the tenant mix we're seeing in that building is pretty much in line what we were hoping for.

是的。很好的問題。我認為我們對 3025 住宅項目活動的加速感到非常滿意。我的意思是，我們每個月生產 20 個單位，這非常符合我們的計劃。有效租金維持不變。我們在建築中看到的租戶組合的人口結構幾乎符合我們的期望。

So we think that demographic will continue to view the project very favorably. And we do anticipate that by the end of this year, we'll kind of be in the 80% to 85% leased range, and that's built into our financial plan. Down at Uptown ATX, those units won't really start coming online until later in the second quarter, early third quarter. The marketing plan and marketing launch has taken place. We're already starting to do hard hat tours. We have a couple of leases out for signature already.

因此，我們認為人們將繼續非常看好該項目。我們確實預計，到今年年底，我們的租賃率將達到 80% 至 85%，這已納入我們的財務計畫。在Uptown ATX，這些設備要到第二季末、第三季初才會真正開始上線。行銷計劃和行銷啟動已經進行。我們已經開始進行安全帽之旅了。我們已經有幾份租約可供簽署。

But we do anticipate, given the delivery time line of that project that we'll be kind of in that 50% occupied range by the end of the year. Both the residential market in Philadelphia as well as in Austin is very competitive. So we're keeping a close eye on concession packages, and I mentioned up at here in Avira, we seem to be doing very well versus our budget. We'll keep a close eye on that down in Austin. We do think we have the quality advantage based on some of our direct competition, both in Philadelphia and in Austin. But we'll have to see how the actual traction and the lease executions go on both properties going forward.

但我們確實預計，考慮到該專案的交付時間線，我們將在今年年底達到 50% 的佔用率範圍。費城和奧斯汀的住宅市場競爭都非常激烈。因此，我們正在密切關注優惠套餐，我在 Avira 中提到過，與我們的預算相比，我們似乎做得非常好。我們將密切關注奧斯汀的情況。我們確實認為，基於我們在費城和奧斯汀的一些直接競爭，我們擁有品質優勢。但我們必須看看這兩個房產未來的實際吸引力和租賃執行情況如何。

Great. That was helpful. And going back to your renewals and retention rate, you felt comfortable increasing that expectation. And what's really driving the comfort that you have? And do you anticipate the higher level of renewals to get you to positive net absorption in the near term? I know you mentioned you expect occupancy to bottom at some point this year, but maybe a little timing or when do you expect on timing?

偉大的。這很有幫助。回到您的續訂率和保留率，您可以放心地提高這種期望。是什麼真正讓您感到舒適？您是否預期更高水準的續訂將使您在短期內實現正淨吸收？我知道您提到您預計入住率將在今年某個時候觸底，但也許有一點時間，或者您預計什麼時候見底？

Yes. I think our ability to move the retention range was really based on the fact that we've executed the renewals necessary to make that change. So very little speculative renewal left to kind of get to that new target. It was primarily driven by a couple of leases where early indications were that the tenant may not renew, and that's kind of how our original business plan was compiled.

是的。我認為我們改變保留範圍的能力實際上是基於我們已經執行了進行更改所需的續訂這一事實。因此，幾乎沒有任何投機性的更新可以達到新的目標。這主要是由幾項租約推動的，這些租約的早期跡象表明租戶可能不會續約，這就是我們最初的商業計劃的編制方式。

And then when we got clarity on the fact that they did, in fact, renew, we obviously were able to make the adjustment. So even moving that range just further solidifies our comfort that we deliver year-end occupancy within the original business plan range.

然後，當我們清楚地了解他們確實更新了這一事實時，我們顯然能夠做出調整。因此，即使調整這個範圍也只會進一步鞏固我們的信心，即我們在原始業務計劃範圍內提供年終入住率。

And I'm not showing any further questions at this time. I'd like to turn the call back over to Jerry for any closing remarks.

目前我不會提出任何進一步的問題。我想將電話轉回給傑瑞，讓他作結束語。

Great. Kevin, thank you. Look, thank you all again for participating in our first quarter '24 earnings call. We look forward to updating on our business plan activities on our second quarter earnings call in the summer. So have a great day, and thank you again for participating.

偉大的。凱文，謝謝你。再次感謝大家參加我們 24 年第一季的財報電話會議。我們期待在夏季第二季財報電話會議上更新我們的業務計劃活動。祝您有美好的一天，再次感謝您的參與。

Ladies and gentlemen, this concludes today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。