Easterly Government Properties Inc (DEA) 2024 Q3 法說會逐字稿

Greetings. Welcome to the Easterly Government Properties third-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

問候。歡迎參加 Easterly Government Properties 2024 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, Lindsay Winterhalter, Senior Vice President of Investor Relations. Please go ahead.

現在我想將會議交給今天的發言人，投資者關係高級副總裁林賽溫特哈特 (Lindsay Winterhalter)。請繼續。

Good morning. Before the call begins, please note that certain statements made during this conference call may include statements that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes that its expectations is reflected and any forward-looking statements are reasonable, it can give no assurance that these expectations will be attained or achieved.

早安.在電話會議開始之前，請注意，本次電話會議期間所做的某些陳述可能包括非歷史事實的陳述，並被視為 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。儘管該公司認為其預期得到了反映並且任何前瞻性陳述都是合理的，但它不能保證這些預期將會實現或實現。

Furthermore, actual results may differ materially than those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in the company's most recent Form 10-K filed with the SEC and in its other SEC filings. The company assumes no obligation to update publicly any forward-looking statements.

此外，實際結果可能與前瞻性聲明中所述的結果有重大差異，並將受到公司無法控制的各種風險和因素的影響，包括但不限於公司最新的 10-K 表格中包含的風險和因素向美國證券交易委員會提交的文件以及其他美國證券交易委員會的文件。該公司不承擔公開更新任何前瞻性陳述的義務。

Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, core funds from operations, and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the Investor Relations page of the company's website at ir.easterlyreit.com.

此外，在本次電話會議上，本公司可能會提及某些非公認會計原則財務指標，例如營運資金、營運核心資金和可分配現金。您可以在公司收益報告中找到這些非 GAAP 財務指標與目前最具可比性 GAAP 數據的表格調整表，以及公司網站 ir.easterlyreit.com 投資者關係頁面上的單獨補充資訊包。

I would now like to turn the conference call over to Darrell Crate, President and CEO of Easterly Government Properties.

我現在想將電話會議轉交給 Easterly Government Properties 總裁兼執行長 Darrell Crate。

Thank you, Lindsay. Good morning, everyone, and thanks for joining us for this third-quarter conference call. We're pleased with the progress that we've made in the third quarter. As we've previously shared, we are executing our plan to achieve our stated growth goal of 2% to 3% core FFO per share growth year over year. The team feels confident in its ability to accomplish this goal by executing on accretive acquisitions, identifying and implementing operating efficiencies, and focusing our compensation plan around this growth commitment to our shareholders.

謝謝你，林賽。大家早安，感謝您參加我們的第三季電話會議。我們對第三季的進展感到滿意。正如我們之前所分享的，我們正在執行計劃，以實現核心 FFO 每股同比增長 2% 至 3% 的既定增長目標。該團隊對透過執行增值收購、確定和實施營運效率以及圍繞對股東的成長承諾的薪酬計劃來實現這一目標的能力充滿信心。

We closed on $139.5 million of acquisitions in 2024, consisting of six new assets either wholly owned or through our JV. We're striving to harvest a pipeline of roughly $1.5 billion in attractive potential opportunities. We continue to closely examine our operations, both internally and externally, finding significant operational savings across the organization. And the team has embraced our well-defined strategy that we believe represents the best value proposition for public REITs. In addition, our stated goal of achieving 2% to 3% core FFO growth target year over year, we are focused on growing CAD and achieving a targeted payout ratio below 100% by the end of 2026.

2024 年，我們完成了 1.395 億美元的收購，其中包括全資或透過合資企業擁有的六項新資產。我們正在努力收穫價值約 15 億美元的有吸引力的潛在機會。我們繼續仔細檢查我們的內部和外部運營，發現整個組織的營運成本顯著節省。該團隊已經接受了我們明確的策略，我們相信該策略代表了公共房地產投資信託基金的最佳價值主張。此外，我們既定目標是實現核心 FFO 年成長 2% 至 3%，我們專注於增加加元，並在 2026 年底前實現低於 100% 的目標支付率。

I'm pleased with the work that we've accomplished in the last several quarters, and I'm confident in the team's ability to navigate the company and its operations to meet these two important goals. Of course, today's conference call is unique as the election to determine the next President of the United States is currently underway. As you know, Easterly is focused on mission-critical areas of the US government. Law enforcement, national defense, support for our veterans and other core government functions are critical to any administration and remain the foundation that supports our nation. Political shifts have little influence on these functions. Their key influence is demographic trends, principally driven by population growth. History shows the government consistently grows the agencies that support the safety and security of the country, and we continue to hone our definable edge by acquiring, managing, and developing a central infrastructure that helps facilitate their operations.

我對我們在過去幾季所完成的工作感到滿意，我對團隊帶領公司及其營運實現這兩個重要目標的能力充滿信心。當然，今天的電話會議很獨特，因為目前正在進行確定下一任美國總統的選舉。如您所知，Easterly 專注於美國政府的關鍵任務領域。執法、國防、對退伍軍人的支持以及其他核心政府職能對於任何政府都至關重要，並且仍然是支持我們國家的基礎。政治變化對這些功能影響不大。它們的主要影響是人口趨勢，主要由人口成長所驅動。歷史表明，政府不斷發展支持國家安全的機構，我們透過收購、管理和開發有助於促進其運作的中央基礎設施，繼續磨練我們的明顯優勢。

Our acquisitions team is delivering for shareholders and accretively growing the portfolio through mission-critical assets leased to either the US government, high credit US states or government adjacent tenants. With an expanded total addressable market, our pipeline is robust and our ability to transact is strong. Our development team is making great progress at our project site and remains a strong partner to our US government tenant. We have two projects underway: one that is expected to deliver at the end of 2025 and the other in the middle of 2026. The team is pursuing further projects with the intent of delivering in 2027 and '28.

我們的收購團隊正在為股東提供服務，並透過租賃給美​​國政府、美國高信用州或政府相鄰租戶的關鍵任務資產來持續擴大投資組合。隨著整個潛在市場的擴大，我們的管道很強大，我們的交易能力也很強。我們的開發團隊在專案現場取得了巨大進展，並且仍然是我們美國政府租戶的強大合作夥伴。我們有兩個專案正在進行中：一個預計於 2025 年底交付，另一個於 2026 年中期交付。該團隊正在進行進一步的項目，計劃在 2027 年和 28 年交付。

Speaking of strong partnerships, our asset management team has been working alongside the US government to ensure we are operating efficiently and effectively to meet the everyday needs of the key government agencies, while also delivering for our shareholders. Finally, the finance team has been working with equity providers and cultivating relationships with debt providers in order to support our robust pipeline. All verticals are working together to deliver on our goal of achieving 2% to 3% core FFO growth year over year for our shareholders.

說到強有力的合作夥伴關係，我們的資產管理團隊一直與美國政府合作，以確保我們有效率、有效地運營，以滿足主要政府機構的日常需求，同時也為我們的股東提供服務。最後，財務團隊一直在與股權提供者合作，並與債務提供者培養關係，以支持我們強大的管道。所有垂直行業都在共同努力，以實現我們為股東實現核心 FFO 同比增長 2% 至 3% 的目標。

This quarter, we made progress by closing on our most recent VA acquisition in Jacksonville, Florida; and two highly secured assets in Dayton, Ohio; and Aurora, Colorado; leased to Northrop Grumman, both of which sit adjacent to important military bases. With collective attention fixated on the escalating conflicts across the world, supporting the heroes who defend our nation comes with renewed urgency. Assets like VA Jacksonville have enduring missions as over 1.4 million veterans resided in the state of Florida. They represent the third largest vet population in the nation.

本季度，我們在佛羅裡達州傑克遜維爾完成了最近的 VA 收購，並取得了進展；以及位於俄亥俄州代頓的兩處高度安全的資產；和科羅拉多州奧羅拉；租賃給諾斯羅普·格魯曼公司，兩者都毗鄰重要的軍事基地。隨著世界各地不斷升級的衝突受到集體關注，支持保衛我們國家的英雄變得更加緊迫。VA 傑克遜維爾等資產擁有持久的使命，因為佛羅裡達州居住著超過 140 萬名退伍軍人。他們代表了全國第三大獸醫群體。

Veterans serviced within VA Jacksonville have access to primary and specialty healthcare services, including physical and occupational therapy, traumatic brain injury treatment, and rehabilitation medicine. The property also maintains a domiciliary serving as a transition facility for veterans who suffer from a service-related disability.

在 VA 傑克遜維爾服務的退伍軍人可以獲得初級和專業醫療保健服務，包括物理和職業治療、創傷性腦損傷治療和復健醫學。該酒店還設有一個住所，作為患有與服役相關的殘疾的退伍軍人的過渡設施。

Further supporting our veterans, VA Charleston is a highly automated facility that uses state-of-the-art robotics and other production equipment to fill and mail prescription medicine. With approximately 500 employees working two shifts 20 hours a day, this facility is responsible for filling 110,000 mail order prescriptions daily. It's an impressive modern facility.

VA 查爾斯頓是一個高度自動化的設施，使用最先進的機器人和其他生產設備來填寫和郵寄處方藥，進一步支持我們的退伍軍人。該設施約有 500 名員工，兩班倒，每天工作 20 小時，每天負責配藥 11 萬個郵購處方。這是一個令人印象深刻的現代化設施。

During the quarter, we also closed on the acquisition of an asset that's 100% leased to Northrop Grumman Systems Corporation, an investment grade-rated multinational aerospace and defense company, and the facility maintains robust security design standards in connection with the tenants' contracts with the Wright-Patterson Air Force Base, the main access point for the Air Force Research Laboratory's headquarters and the Air Force Institute of Technology.

本季度，我們也完成了一項資產的收購，該資產100% 租賃給諾斯羅普·格魯曼系統公司（一家投資級跨國航空航天和國防公司），並且該設施根據與租戶簽訂的合約維持了嚴格的安全設計標準。

We also acquired another facility housing essential operations leased to Northrop Grumman in Aurora, Colorado. Constructed to meet the security standards of the Director of National Intelligence for the processing, storage and discussion of sensitive compartmented information, the property's build-out is directly related to Northrop Grumman contracts with Buckley Space Force Base, which provides missile warning operations to the United States and its international partners, while supporting 3,500 active-duty members from every service.

我們也收購了位於科羅拉多州奧羅拉的另一處租賃給諾斯羅普·格魯曼公司的重要營運設施。該設施的建造是為了滿足國家情報總監處理、存儲和討論敏感隔離信息的安全標準，其建設與諾斯羅普·格魯曼公司與巴克利太空軍基地的合同直接相關，該基地為美國提供飛彈預警業務各國及其國際合作夥伴，同時為各軍種的 3,500 名現役軍人提供支援。

These acquisitions are important milestones for Easterly in the government adjacent space and materially expand our total addressable market. We see consistent demand from defense sector companies with government contracts and a need for specialized secure facilities.

這些收購是 Easterly 在政府鄰近領域的重要里程碑，並實質地擴大了我們的整體目標市場。我們看到擁有政府合約的國防部門公司的持續需求以及對專業安全設施的需求。

As a national security and international partner, defense continues to be prioritized amid global unrest, and we anticipate our exposure in the sector to expand. Both our Aurora and Dayton facilities fulfill our approach to owning mission-critical real estate, and we're excited to continue to pursue accretive deals in the government adjacent sector as an important component of our ability to deliver earnings growth to shareholders.

作為國家安全和國際合作夥伴，在全球動盪中，國防仍然是優先考慮的事項，我們預計在該領域的業務將會擴大。我們的奧羅拉和代頓工廠都符合我們擁有關鍵任務房地產的方式，我們很高興能夠繼續在政府相關部門尋求增值交易，作為我們為股東帶來盈利增長能力的重要組成部分。

In connection with our growth pipeline, we want to be very clear that we've charted a path towards lowering our payout ratio under a defined timeline. We've worked this year to model this path, and we believe we are on track to achieve sustained dividend coverage within 24 months.

關於我們的成長管道，我們希望非常清楚地表明，我們已經制定了一條在規定的時間表內降低派息率的路徑。今年我們已經努力為這條道路建模，我們相信我們預計在 24 個月內實現持續的股息覆蓋。

Our focus is on continuing to execute the strategy with disciplined balance sheet management and operational efficiencies. We're committed to the earnings guidance we provide, and we'll continue to honor that commitment as responsible stewards of our investors' capital.

我們的重點是繼續透過嚴格的資產負債表管理和營運效率來執行該策略。我們致力於提供獲利指引，並將繼續履行作為投資者資本的負責任管理者的承諾。

And finally, in closing, we observed that price dislocations will exist over the coming year as private sellers have limited access to capital. We believe this dynamic presents more exciting opportunities for us as we again continue to focus on delivering 2% to 3% core FFO growth year over year for our investors.

最後，我們觀察到，由於私人賣家獲得資金的機會有限，未來一年將出現價格錯位。我們相信，這種動態為我們帶來了更多令人興奮的機會，因為我們再次繼續專注於為投資者提供 2% 至 3% 的核心 FFO 同比成長。

With that, we're introducing our 2025 core FFO guidance on a fully diluted basis in the range of $1.17 to $1.21. We believe we have the right pipeline, the right cost of capital and the right team to deliver on this forecast. The future looks bright for our company, and we plan to enhance our portfolio under the foundation of stable cash flows derived from the US government.

因此，我們將在完全稀釋的基礎上推出 2025 年核心 FFO 指導，範圍為 1.17 美元至 1.21 美元。我們相信我們擁有合適的管道、合適的資本成本和合適的團隊來實現這一預測。我們公司的未來一片光明，我們計劃在來自美國政府的穩定現金流的基礎上增強我們的投資組合。

Thank you again for taking time to join us this morning. And now I'll hand things over to Allison Marino, our Chief Financial Officer.

再次感謝您今天早上抽出時間加入我們。現在我將把事情交給我們的財務長艾莉森·馬裡諾。

Thanks, Darrell. Good morning, everyone. I am pleased to report the financial results for the third quarter. Both on a fully diluted basis, net income per share was $0.05, and core FFO per share grew to $0.30. Our cash available for distribution was $25.1 million.

謝謝，達雷爾。大家早安。我很高興地報告第三季的財務表現。兩者在完全稀釋的基礎上，每股淨利潤均為 0.05 美元，每股核心 FFO 增長至 0.30 美元。我們可供分配的現金為 2,510 萬美元。

As Darrell mentioned, our cost of capital continues to improve, and this should enable us to accelerate our acquisition strategy and deliver earnings growth to shareholders. With an expanded total addressable market, which now includes assets leased to government contractors, our buying pool is materially larger, and we seek to take advantage of that.

正如達雷爾所提到的，我們的資本成本持續改善，這將使我們能夠加快收購策略並為股東帶來收益成長。隨著整個潛在市場的擴大（現在包括租賃給政府承包商的資產），我們的購買池大幅擴大，我們尋求利用這一點。

While the acquisitions team is focused on growing the portfolio through mission-critical assets, we continue to renew leases in our existing portfolio, lengthening our weighted average remaining lease term and growing future cash flows. In total, we have renewed all of our significant 2024 leases and look towards 2025 and beyond to capture embedded growth opportunities on a same-store basis.

雖然收購團隊專注於透過關鍵任務資產擴大投資組合，但我們繼續更新現有投資組合的租賃，延長加權平均剩餘租賃期限並增加未來現金流。總的來說，我們已經續簽了 2024 年所有重要的租約，並期待 2025 年及以後抓住同店基礎上的內在增長機會。

Bank markets are open to us because we are not office, and banks view our assets as some of the most secure that they can finance. We are in constant dialogue with lenders to translate our market-leading tenant credit into tighter spreads and a cheaper cost of capital. We have been able to further capitalize on the shift in underlying market fundamentals by recently raising roughly $40 million in forward equity on our ATM.

銀行市場對我們開放，因為我們不是辦公室，銀行將我們的資產視為他們可以融資的最安全的資產。我們不斷與貸方對話，將我們市場領先的租戶信貸轉化為更小的利差和更便宜的資本成本。最近，我們透過 ATM 籌集了約 4,000 萬美元的遠期股本，從而進一步利用了市場基本面的變化。

With our more attractive cost of capital, we are positioned to significantly increase our acquisition volume. With a larger pool of assets to acquire, a strong portfolio, a cheaper cost of capital and improving market dynamics, we believe we can chart a course for a sustained 2% to 3% earnings growth year over year for the foreseeable future.

憑藉更具吸引力的資本成本，我們有能力大幅增加收購量。憑藉更大的資產池、更強大的投資組合、更便宜的資本成本以及不斷改善的市場動態，我們相信，在可預見的未來，我們可以製定出實現持續2% 至3% 的盈利同比增長的路線。

Turning to guidance, we are maintaining our full-year core FFO per share guidance for 2024 in a range of $1.15 to $1.17 on a fully diluted basis. On top of the $139.5 million in operating properties we have already acquired year to date, either on a wholly owned or a pro rata basis, this guidance assumes an additional $90 million in acquisitions later this year and that we will have $100 million to $110 million of gross development-related investment during 2024. We raised equity at levels that drive accretion for these acquisitions, and we look forward to keeping you posted on exciting developments in the final months of the year.

至於指導意見，我們將 2024 年全年核心 FFO 每股指導意見維持在完全稀釋後的 1.15 美元至 1.17 美元範圍內。除了今年迄今為止我們已經以全資或按比例收購的 1.395 億美元經營性物業之外，本指引還假設今年晚些時候將額外收購 9,000 萬美元，我們將擁有 1 億至 1.1 億美元的資產2024年發展相關投資總額。我們籌集的股本水準推動了這些收購的增加，我們期待在今年最後幾個月向您通報令人興奮的進展。

Finally, I'm happy to share that today we introduced our full-year core FFO per share guidance for 2025 in a range of $1.17 to $1.21 on a fully diluted basis. This guidance assumes that we will have $25 million to $35 million of gross development-related investment during the year and is consistent with our established goal of delivering 2% to 3% core FFO growth for shareholders.

最後，我很高興與大家分享，今天我們推出了 2025 年全年核心 FFO 每股指引，在完全稀釋的基礎上在 1.17 美元至 1.21 美元之間。本指引假設我們年內將有 2,500 萬至 3,500 萬美元的開發相關總投資，並且與我們為股東實現 2% 至 3% 核心 FFO 成長的既定目標一致。

With that, we thank you for your time this morning and appreciate your partnership. I will now turn the call back to Shannon.

在此，我們感謝您今天上午抽出寶貴的時間，並感謝您的合作關係。我現在將電話轉回給香農。

(Operator Instructions) Michael Griffin, Citi.

（操作員指示）Michael Griffin，花旗銀行。

Great, thanks. Just wanted to dive a little bit more into the 2025 guidance. Any chance you can maybe elaborate on some of the building blocks of that growth, whether it's rent bumps or expectations around upcoming lease expiries and releasing those? And then can you give us a sense of where you expect leverage to trend in the year and then how accretive acquisitions you expect them to be?

太好了，謝謝。只是想更深入地了解 2025 年指導。您是否有機會詳細說明這種增長的一些組成部分，無論是租金上漲還是對即將到來的租約到期和釋放這些租約的預期？然後您能否讓我們了解您預計今年槓桿率的趨勢，以及您預期收購的增值效果如何？

Thanks and good morning. So the range we provided indicates an expectation of likely outcomes based on things like property NOI growth, G&A levels, interest rate expectations, and of course, the pipeline. At the upper end of the guidance range, we will look to the pipeline to drive growth, and we definitely see opportunities to do a couple of hundred million dollars of deals.

謝謝，早安。因此，我們提供的範圍顯示了基於房地產 NOI 成長、一般行政費用水準、利率預期，當然還有管道等因素對可能結果的預期。在指導範圍的上限，我們將尋求管道來推動成長，我們肯定會看到進行數億美元交易的機會。

And all of that is sort of maintained when we think about leverage as well. We are still very comfortable in that 6.5x to 7.5x range. And this guidance would put us in that range as well.

當我們考慮槓桿時，所有這些都得到了維持。我們在 6.5 倍到 7.5 倍的範圍內仍然感到非常舒適。這項指導也將使我們處於這個範圍內。

Thanks, Allison. Appreciate the color there. And then maybe, Darrell, going back to the acquisition pipeline. It seems like you're expanding more into these government adjacent-type properties, the Northrop Grumman acquisition as an example. I mean, how do you see kind of the opportunity set within that part of the pipeline? And then maybe you can give us a sense of where kind of yield expectations are relative to how you see your cost of capital.

謝謝，艾莉森。欣賞那裡的顏色。然後，達雷爾，也許，回到收購管道。看來您正在將更多業務擴展到這些政府相鄰類型的財產，例如諾斯羅普格魯曼公司的收購。我的意思是，您如何看待管道中該部分所設置的機會？然後也許您可以讓我們了解收益率預期與您如何看待資本成本的關係。

Yeah, sure. I mean, stepping way back, when we look at the portfolio, we're going to strive to have about 15% of our portfolio in high credit state exposure and about 15% of our portfolio in this government adjacent space. And continuing, of course, to have 70% of our portfolio in the GSA, VA, US government, full faith and credit tenant leases.

是的，當然。我的意思是，退一步來說，當我們審視投資組合時，我們將努力將大約15% 的投資組合置於高信用狀態敞口中，並將大約15% 的投資組合置於與政府相鄰的領域。當然，我們的投資組合中 70% 的份額將繼續來自 GSA、VA、美國政府、完全信用和信用租戶租賃。

As we look forward, we're looking in that government adjacent space, and we're finding buildings that look very similar and work operationally in a way that's similar to the buildings that we already own. That's why in my prepared remarks, we talk about the compartmented information space and essentially the SCIF spaces. That's what we're used to maintaining, and those are the buildings that we understand how they operate. We have an ability to forecast their NOI.

當我們展望未來時，我們正在尋找政府相鄰的空間，我們發現建築物看起來非常相似，並且運作方式與我們已經擁有的建築物相似。這就是為什麼在我準備好的發言中，我們討論劃分的資訊空間，本質上是 SCIF 空間。這就是我們習慣維護的，也是我們了解其運作方式的建築。我們有能力預測他們的 NOI。

One of the things that is beautiful that you're going to love, Griff, is that these government adjacent buildings have bumps in their leases. So as you know, at the beginning of the year, we changed our strategy and enhanced it so that our total addressable market was larger.

格里夫，你會喜歡的一件美麗的事情是，這些毗鄰政府的建築的租約有波動。如您所知，在今年年初，我們改變了策略並對其進行了增強，以便我們的總目標市場更大。

As I've said, we're sorting through a little over $1.5 billion of identified buildings. We can be very disciplined in finding the right ones. I think we're able to acquire buildings at a cap rate that's 50 to 100 basis points above our cost of capital. And I think Allison is doing a great job working with a wide range of debt providers. So I imagine as we move through 2025, we're going to continue to be able to maintain those spreads.

正如我所說，我們正在對價值略高於 15 億美元的已確定建築物進行分類。我們可以非常自律地尋找合適的人選。我認為我們能夠以比我們的資本成本高 50 到 100 個基點的上限利率購買建築物。我認為艾里森在與眾多債務提供者的合作中做得非常出色。因此，我想當我們進入 2025 年時，我們將繼續能夠維持這些利差。

In so many of the buildings that where we're reaching out and identifying, they have some sort of capital issue -- either the seller has some maturing debt that they're looking to clean up their real estate balance sheet or the private buyers that brokers would tell us would normally be present seem to be absent because they can't find the leverage that they've been able to find in the past.

在我們接觸並確定的許多建築物中，它們都存在某種資本問題——要么是賣方有一些到期債務，他們正在尋求清理其房地產資產負債表，要么是私人買家經紀人會告訴我們，通常會出現的人似乎缺席了，因為他們找不到過去能夠找到的槓桿作用。

So as we look forward to this year, I think we're being very prudent about our guidance. As Allison was saying, the lower end of the range is us continuing to execute on the $90 million of acquisitions that we need to close by the end of the year. So they'll have their full year effect for next year, and we'll continue to manage costs well, which Allison is doing a fabulous job for us all.

因此，當我們展望今年時，我認為我們對我們的指導非常謹慎。正如艾利森所說，範圍的下限是我們繼續執行我們需要在年底前完成的 9000 萬美元的收購。因此，他們將在明年發揮全年效果，我們將繼續妥善管理成本，艾里森在這方面為我們所有人做了出色的工作。

And with that, with $200 million or $300 million of acquisitions, we can get to the upper end of the range. And as we think about it broadly, what we're delivering to shareholders, our unlevered return in our portfolio is between 5% and 6%. Add 3% growth to that, you're getting into the 8%s relative to the very low risk that we have in our portfolio, the high credit tenancy when we look at that relative to REITs at large, and we look at other opportunities in the capital markets for folks to invest, we think that's a very attractive opportunity.

這樣，透過 2 億或 3 億美元的收購，我們就可以達到這個範圍的上限。當我們廣泛思考我們為股東提供的東西時，我們投資組合的無槓桿回報率在 5% 到 6% 之間。再加上 3% 的成長，相對於我們投資組合中的非常低的風險，當我們考慮相對於整個 REITs 的高信貸租賃時，你就進入了 8% 的水平，並且我們考慮了其他機會對於人們投資資本市場來說，我們認為這是一個非常有吸引力的機會。

We could exceed our acquisition goals that we have in our guidance, but we're at the beginning of 2025. But we're really in search of opportunities, and we think the cost of capital that we've been awarded with by investors plus what we're seeing in the market gives us a really nice optimistic orientation as we start 2025.

我們可能會超出指導中的收購目標，但現在是 2025 年初。但我們確實在尋找機會，我們認為投資者給予我們的資本成本加上我們在市場上看到的情況為我們在 2025 年開始時提供了非常樂觀的方向。

Peter Abramowitz, Jefferies.

彼得·阿布拉莫維茨，杰弗里斯。

Yes, thank you. Just to dig a little bit more into the comments on leverage. I think you said you could get to the high end of the range without bringing leverage up. So just curious how you sort of see your cost of equity versus your cost of debt today and maybe how that kind of overall compares to the spread. I know you said 50 to 100 basis points is sort of what you're targeting, but just curious sort of how you're thinking about that.

是的，謝謝。只是為了進一步深入了解槓桿的評論。我想你說過你可以在不提高槓桿的情況下達到該範圍的高端。所以只是好奇你如何看待今天的股本成本與債務成本，以及總體與利差相比如何。我知道你說過 50 到 100 個基點是你的目標，但只是好奇你是如何看待這個問題的。

Yeah. So I think every decision that we make is done in a view of leverage, certainly, when we look at forward planning, how we acquire buildings, how they create accretion for us. So we typically will look to deal flow on a 50-50 basis debt and equity, and that's how we ultimately manage the pipeline's ability to stay within that range.

是的。因此，我認為我們所做的每一個決定都是從槓桿的角度做出的，當然，當我們考慮前瞻性規劃、我們如何獲得建築物、它們如何為我們創造增值時。因此，我們通常會以 50-50 的債務和股權為基礎來考慮交易流量，這就是我們最終管理管道保持在該範圍內的能力的方式。

From a cost of debt perspective -- from an overall cost of capital perspective, maybe to start, I would say we're in the low 7s. Certainly, higher stock prices help that for sure. But from a cost of debt specifically perspective, I would say we're in the low 6s for it on an unsecured basis. So for new debt, of course, not for the overall stack as we look at it.

從債務成本的角度來看——從整體資本成本的角度來看，也許一開始，我會說我們處於低七水平。當然，更高的股價肯定會有所幫助。但從具體的債務成本角度來看，我想說，在無擔保的基礎上，我們的債務成本處於 6 分以下。因此，對於新債務來說，當然不是我們所看到的整體債務。

Yeah. And then with that, I mean, finding acquisitions that are in the high 7s and 8s is what we're seeing and the opportunities that we're acting upon.

是的。然後，我的意思是，尋找高 7 和 8 的收購是我們所看到的，也是我們正在採取行動的機會。

Okay. That's helpful. Thank you. And then within that $1.5 billion investment pipeline, are there any portfolios out there? And how much of that pipeline is made up of larger portfolio transactions that maybe we should be thinking about?

好的。這很有幫助。謝謝。那麼在這 15 億美元的投資管道中，是否有任何投資組合？其中有多少是我們應該考慮的更大的投資組合交易？

No, I mean, there's nothing significant in the $1.5 billion. I mean, there's a couple of small portfolios, two buildings, three building kind of portfolios, but nothing that -- it's a great question because it's not like there's a $1 billion portfolio, and we've got a little cobble of $500 million of other buildings that we're looking at.

不，我的意思是，這 15 億美元沒有什麼意義。我的意思是，有幾個小型投資組合，兩座建築，三座建築類型的投資組合，但沒有什麼——這是一個很好的問題，因為它不像有一個10 億美元的投資組合，而我們有一個5 億美元的小卵石。

I think we've got a robust pipeline. And obviously, with dislocation, sellers have -- they always -- they start with some higher expectations than what the market can satisfy. And I think we're -- our guidance anticipates that acquisitions can be lumpy that we're trying to seize on dislocations and we're trying to get an attractive spread to our cost of capital.

我認為我們有一個強大的管道。顯然，在混亂的情況下，賣家——他們總是——一開始的期望高於市場所能滿足的水平。我認為我們的指導預計收購可能會很不穩定，我們正試圖抓住錯位，我們正在努力獲得有吸引力的資本成本利差。

That's helpful. And one last one. Just in Aurora, I think there -- you're adjacent there to the Buckley Base. There's been some conversations possibly around if Trump wins, he will be moving Space Force, at least in Colorado Springs, potentially back to Huntsville. So just curious, is that something you had to consider when you're underwriting that asset? Is that something that kind of impacts the thinking and when to the underwriting? Or is that sort of not an issue there?

這很有幫助。還有最後一張。我想就在奧羅拉——那裡毗鄰巴克利基地。已經有一些討論可能涉及如果川普獲勝，他將把太空部隊（至少在科羅拉多斯普林斯）轉移到亨茨維爾。所以只是好奇，當你承銷該資產時，這是你必須考慮的事情嗎？這是否會影響思考以及何時進行承保？或者這不是一個問題嗎？

The answer is yes. We've determined it's not an issue. I mean, there's critical functions that are at present in Buckley. We are also -- we've got a couple of plane tickets down to Alabama. We've been spending time understanding what's going on there as well. And so I think that we've been mindful of what the opportunity is in each of those regions.

答案是肯定的。我們已經確定這不是問題。我的意思是，巴克利目前有一些關鍵職能。我們還有──我們有幾張飛往阿拉巴馬州的機票。我們也花了時間了解那裡正在發生的事情。因此，我認為我們一直在關注每個地區的機會。

Aditi Balachandran, RBC Capital Markets.

Aditi Balachandran，加拿大皇家銀行資本市場。

Hi. Good morning, everyone. So I guess just -- I know you started touching on this in your prepared remarks, Allison, but do you have any update on the remaining 2024 lease expiration? And I guess, like, can you provide some color on the outlook for 2025 and what you're expecting leasing spreads to be?

你好。大家早安。所以我想，艾利森，我知道您在準備好的發言中開始談到這一點，但是您對 2024 年剩餘租約到期有任何更新嗎？我想，您能否對 2025 年的前景以及您對租賃利差的預期提供一些資訊？

Yeah. So we have completed all of our remaining important 2024 renewals. And as we look to 2025, we've got a few FBIs in the courthouse in Aberdeen. We're feeling good about those renewals as well, and we're expecting net effective rent spreads to be consistent with our prior achievements in that mid- to high teens levels.

是的。因此，我們已經完成了所有剩餘的 2024 年重要續約。展望 2025 年，阿伯丁法院將有一些聯邦調查局人員。我們對這些續約也感覺良好，我們預計淨有效租金利差將與我們先前在中高青少年水準上所取得的成就一致。

Got it. And I guess just in general, as rates have been coming down, have you been seeing any overall changes in the buyer pool or any more competition for specific assets?

知道了。我想總的來說，隨著利率的下降，您是否看到買家群體出現任何整體變化或對特定資產的更多競爭？

No. I mean, that's really -- it is -- it feels like it's a time that is certainly in transition because private buyers, which probably represent two-thirds of our competition, one random private buyer after another, they have pretty much evaporated from the market. So -- and Allison -- we've spent a lot of time touring, as you know, our debt providers into our facilities. It's very clear to folks who have been supportive of us and prospective folks who can give us some additional debt capacity that we're certainly not office and they understand the creditworthiness of our tenant and the mission-critical nature of our buildings. And I think we'll continue to be rewarded with access to the debt markets.

不。我的意思是，這確實是——確實是——感覺就像是一個正在轉型的時代，因為私人買家可能代表了我們競爭對手的三分之二，一個接一個的隨機私人買家，他們幾乎已經從市場中消失了。所以——還有艾莉森——正如你所知，我們花了很多時間參觀我們的債務提供者的設施。對於一直支持我們的人和可以為我們提供額外債務能力的潛在人士來說，很清楚我們肯定不是辦公室，他們了解我們租戶的信用度和我們建築物的關鍵任務性質。我認為我們將繼續因進入債務市場而獲得回報。

(Operator Instructions) Michael Lewis, Truist Securities.

（操作員指示）Michael Lewis，Truist 證券公司。

The G&A expense was down materially in the quarter. I don't think it's because you split out the provision for credit losses because I don't think that was material in prior period, and you could correct me if I'm wrong. Can you just talk about what drove that decrease, what the run rate might be going forward? And then also related to that, do you expect to record any severance or separation costs?

本季的一般管理費用大幅下降。我不認為這是因為你把信用損失準備金分開了，因為我認為這在前期並不重要，如果我錯了，你可以糾正我。您能否談談是什麼導致了這種下降，以及未來的運行率可能會如何？與此相關的是，您是否希望記錄任何遣散費或離職費用？

Great question.

很好的問題。

Several great questions.

幾個很好的問題。

Several great questions. We will try to tackle them one by one. So for G&A, what you're seeing from a quarter-over-quarter trend is with Meghan's voluntary resignation, she forfeited all of her invested equity awards, and we recapture the award to date expense with her last day. So that is driving the change on a quarter-over-quarter basis. You're correct. It was not the credit losses on a Q2 to Q3 basis.

幾個很好的問題。我們將盡力一一解決。因此，對於 G&A，您從季度環比趨勢中看到的是，隨著梅根自願辭職，她放棄了所有投資股權獎勵，而我們在她最後一天重新獲得了截至日期費用的獎勵。因此，這推動了季度環比的變化。你是對的。這不是第二季至第三季的信貸損失。

What about run rate G&A for next year?

明年的一般管理費用運作率怎麼樣？

Yeah. So run rate G&A for next year, we are expecting consistent levels, hopefully flat to where we were this year that we're not expecting large increases nor severance or termination costs in those numbers.

是的。因此，我們預計明年的一般行政費用率將保持一致，希望與今年持平，因為我們預計這些數字不會大幅增加，也不會出現遣散費或終止成本。

Okay, got it. And then on the provision for credit losses, I assume that's just an accounting construct. Is that going to be like a number that now bounces around or maybe kind of what determined what that amount was?

好的，明白了。然後關於信用損失準備金，我認為這只是一個會計結構。這是否會像現在反彈的數字一樣，或者可能是決定該金額的因素？

Sure. So without getting into a huge accounting class, with -- that is an accounting provision that would require us to estimate potential loss on that loan. And while we're not experiencing actual loss or default, we would have to update the probability quarterly while it is outstanding.

當然。因此，在不進入龐大的會計課程的情況下，這是一項會計規定，要求我們估計該貸款的潛在損失。雖然我們沒有遇到實際損失或違約，但我們必須在未解決的情況下每季更新一次機率。

Okay, got it. And then lastly for me, you talked about the pipeline of investment opportunities. Where does deals like this development loan fit into that? I mean, is that something where you might allocate more capital? This one may be -- I mean, it has a purchase option, so it could turn into a loan tone. But how do you think about that particular type of investment?

好的，明白了。最後對我來說，您談到了投資機會的管道。像這樣的開發貸款這樣的交易適合在哪裡？我的意思是，這是你可以分配更多資本的地方嗎？這個可能是——我的意思是，它有一個購買選項，所以它可能會變成一種貸款語氣。但您如何看待這種特定類型的投資？

I think it's an attractive use of our cost of capital, to be honest. I think it's a great opportunity for us to provide liquidity to developers who aren't able to go out to their average regional bank and get these projects financed. I think for us, we think about it in the lens of the pipeline. This is an asset that we understand. We can underwrite well that we think will generate an attractive return through the lending period, particularly, but also something we have potential in acquiring in the future that complements our portfolio.

老實說，我認為這是對我們資本成本的一個有吸引力的利用。我認為這對我們來說是一個很好的機會，可以為那些無法向普通地區銀行尋求融資的開發商提供流動性。我認為對我們來說，我們會從管道的角度來思考這個問題。這是我們理解的資產。我們可以很好地承保我們認為在貸款期間會產生有吸引力的回報的東西，尤其是我們未來有潛力獲得的東西，以補充我們的投資組合。

The intent would be for these buildings to be part of our portfolio. It's why we're getting involved with them. And we think by being helpful to a development partner, it's also going to give us a terrific building at a price that's attractive relative to our cost of capital.

目的是讓這些建築成為我們投資組合的一部分。這就是我們與他們交往的原因。我們認為，透過為開發合作夥伴提供協助，它也將為我們提供一座出色的建築，其價格相對於我們的資本成本而言具有吸引力。

I would now like to turn the conference back to Darrell Crate, President and Chief Executive Officer of Easterly Government Properties, please, for closing remarks.

現在我想請 Easterly Government Properties 總裁兼執行長 Darrell Crate 致閉幕詞。

Thank you, everyone, and thanks for joining Easterly Government Properties' third-quarter 2024 conference call. We look forward to keeping you posted on the coming quarters as we make progress on our pipeline of growth opportunities. And again, thanks for joining.

謝謝大家，也謝謝您參加 Easterly Government Properties 的 2024 年第三季電話會議。隨著我們在成長機會管道方面取得進展，我們期待在未來幾季向您通報最新情況。再次感謝您的加入。

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。