Easterly Government Properties Inc (DEA) 2025 Q2 法說會逐字稿

Greetings. Welcome to Easterly Government Properties second-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

大家好！歡迎參加伊斯特利政府地產公司2025年第二季財報電話會議。 （操作員指示）請注意，今天的會議正在錄音中。

I would now like to hand the conference over to the speaker today, Allison Marino, Executive Vice President and Chief Financial Officer. Please go ahead.

現在，我想將會議發言權交給今天的演講嘉賓，執行副總裁兼財務長艾莉森·馬裡諾 (Allison Marino)。請發言。

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 as reflected in any forward-looking statements are reasonable, it can give no assurance that these expectations will be attained or achieved. Furthermore, actual results may differ materially from 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, as contained in the company's most recent Form 10-K filed with the SEC and in its other SEC filings.

早安.在電話會議開始之前，請注意，本次電話會議中的某些陳述可能包含非歷史事實的陳述，這些陳述被視為《1995年私人證券訴訟改革法》所定義的前瞻性陳述。儘管公司認為其在任何前瞻性陳述中反映的預期是合理的，但無法保證這些預期能夠實現。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，並將受到各種超出公司控制範圍的風險和因素的影響，包括但不限於公司最近向美國證券交易委員會提交的10-K表格以及其他提交給美國證券交易委員會的文件中所述的內容。

The company assumes no obligation to update publicly any forward-looking statements. 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.

本公司不承擔公開更新任何前瞻性聲明的義務。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準則 (non-GAAP) 財務指標，例如營運資金、核心營運資金和可供分配現金。您可以在公司網站 ir.easterlyreit.com 的投資者關係頁面上找到這些非公認會計準則 (non-GAAP) 財務指標與公司收益報告中最可比較的當前公認會計準則 (GAAP) 數據的對賬表，以及單獨的補充信息包。

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

現在，我想將電話會議交給 Easterly Government Properties 總裁兼執行長 Darrell Crate。

Thanks, Allison. Good morning, and thank you for joining us today. The second quarter of 2025 reflects continued execution on our long-term strategy, disciplined growth, essential real estate and enduring value creation. At Easterly, we've always focused on delivering reliable performance in uncertain times. This quarter is no exception. Our business remains grounded in mission-critical infrastructure, long-term leases and tenants whose work is vital to the safety, health and security of our country.

謝謝，艾莉森。早安，感謝您今天加入我們。 2025年第二季體現了我們持續執行長期策略、穩健成長、核心房地產和持久價值創造的成果。在Easterly，我們始終致力於在充滿不確定性的時期提供可靠的績效。本季也不例外。我們的業務仍然紮根於關鍵任務基礎設施、長期租賃以及對國家安全、健康和保障至關重要的租戶。

Our portfolio continues to be a source of strength, diversified across geographies and agencies with long-term leases and outstanding credit quality. We own and operate the kind of facilities that are indispensable to the day-to-day functioning of government, courthouses, law enforcement labs, public health clinics and secured facilities. These are buildings that will stay full, perform well and stand the test of time. In the second quarter, we made continued progress across our platform. We advanced several key development projects, each backed by long-term noncancelable leases.

我們的投資組合繼續成為我們實力的源泉，其業務遍布全球各地和機構，擁有長期租約和卓越的信用品質。我們擁有並經營對政府、法院、執法實驗室、公共衛生診所和安保設施的日常運作至關重要的設施。這些建築將保持滿員狀態，運作良好，並經得起時間的考驗。在第二季度，我們在整個平台上繼續取得進展。我們推進了幾個關鍵的開發項目，每個項目都獲得了長期不可取消的租約支援。

We strengthened relationships with federal, state and local partners who rely on our expertise to deliver secure, efficient and modern facilities.

我們加強了與聯邦、州和地方合作夥伴的關係，他們依靠我們的專業知識來提供安全、高效和現代化的設施。

And we remain disciplined in our capital deployment, pursuing opportunities that meet our standards for credit, mission alignment and value creation. We're not in the business of chasing yield at the expense of long-term portfolio value. Our platform is designed to deliver durable returns supported by stable cash flows and thoughtful stewardship. A big part of that disciplined growth comes from the good work being done by Mike Ibe, [indiscernible] and Mark Bauer, Together, they lead our efforts in identifying, underwriting and executing on accretive development and acquisition opportunities that meet our standards, high credit quality, strong alignment with government missions, and the potential to enhance the long-term value and durability of our portfolio.

我們在資本配置方面始終嚴謹，追求符合我們信貸標準、使命契合度和價值創造的機會。我們不會為了追求收益而犧牲投資組合的長期價值。我們的平台旨在透過穩定的現金流和周到的管理提供持久的回報。這種嚴謹的成長很大程度上得益於Mike Ibe（音訊不清晰）和Mark Bauer的出色工作。他們共同領導我們，識別、承保並執行符合我們標準、高信貸品質、與政府使命高度契合、並具有提升投資組合長期價值和持久性的潛力的增值開發和收購機會。

Our work continues to be a core differentiator for Easterly. It enables us to selectively grow into assets that are not only contributing to earnings, but strengthening our overall strategic position as the go-to partner for government tenancy. At the same time, we're mindful of today's market environment. Our stock price and cost of capital remain modestly challenging in part due to the near-term overhang from our dividend reset earlier this year. That was a difficult decision, but a necessary one to preserve flexibility and position ourselves for sustainable growth.

我們的工作始終是Easterly的核心優勢。它使我們能夠選擇性地發展成為不僅能貢獻盈利，還能鞏固我們作為政府租賃首選合作夥伴的整體戰略地位的資產。同時，我們也密切關注當前的市場環境。我們的股價和資本成本仍然略有挑戰性，部分原因是今年稍早股利調整帶來的短期壓力。這是一個艱難的決定，但為了保持靈活性並為永續成長做好準備，這是一個必要的決定。

As we work through this phase, our priority is to rebuild our shareholder base with long-term public investors who understand our mission, believe in our strategy and have the resources to help fuel our growth. We're confident that our fundamentals, our people and our execution will attract the right partners over time. What's particularly gratifying this quarter is that the results, both operational and financial, continue to validate our approach. We've been preparing for an environment where government real estate decisions are more strategic, more cost conscious and more mission-driven. That environment is now here.

在這個階段，我們的首要任務是重建股東基礎，吸引那些理解我們使命、認同我們策略並擁有資源來推動我們成長的長期公共投資者。我們相信，隨著時間的推移，我們的基本面、我們的員工和我們的執行力將吸引合適的合作夥伴。本季尤其令人欣慰的是，營運和財務方面的表現繼續驗證了我們的做法。我們一直在為打造一個政府房地產決策更具策略性、更具成本意識、更以使命為導向的環境做準備。如今，這樣的環境已經來臨。

Whether it's the federal government streamlining of agency footprints or state and local agencies investing in modernized infrastructure, we're increasingly seen as a trusted partner, a firm that delivers what's promised and understands the nuance of public sector leasing.

無論是聯邦政府精簡機構佈局，還是州和地方機構投資現代化基礎設施，我們都越來越被視為值得信賴的合作夥伴，一家兌現承諾並了解公共部門租賃細微差別的公司。

This reputation has taken years to build, and we protect it by staying consistent in how we operate and selective in what we pursue.

這項聲譽是我們經過多年努力才建立起來的，我們透過保持一致的運作方式和選擇性的追求來保護它。

While I'll leave the detailed results to Allison in a moment, I want to highlight that our second quarter reflects strong growth, a solid and improving balance sheet and continued alignment between our financial outcomes and our long-term strategy. The numbers you'll hear today reinforce what we've always believed that a focused strategy executed with discipline delivers real and lasting value.

雖然稍後我會將詳細業績留給艾莉森，但我想強調的是，我們第二季度實現了強勁增長，資產負債表穩健且持續改善，並且我們的財務業績與長期戰略保持了持續的一致性。今天各位將聽到的數字強化了我們始終如一的信念：專注且嚴謹的策略能夠創造真正持久的價值。

As we enter the second half of 2025, our focus remains clear continue to execute our development pipeline with excellence, deepen our relationships across federal, state and local agencies, remain agile and disciplined in capital allocation and above all, stay true to our mission of delivering critical real estate for the public good. We're proud of the platform we've built, proud of the role we play in supporting government operations and proud of the team that continues to execute at the highest level.

邁入2025年下半年，我們的工作重點依然清晰：繼續卓越地推進我們的開發項目，深化與聯邦、州和地方機構的關係，在資本配置方面保持靈活和嚴謹，最重要的是，堅守我們為公眾利益提供關鍵房地產的使命。我們為我們所建構的平台感到自豪，為我們在支持政府運作方面所發揮的作用感到自豪，也為持續以最高水準執行的團隊感到自豪。

To our shareholders, thank you for your continued trust. We remain focused on delivering reliable performance today and building value for tomorrow.

致股東們，感謝你們一直以來的信任。我們將繼續專注於提供可靠的業績，並為未來創造價值。

And with that, I'll turn the call over to Allison for a deeper look at our financial results.

說完這些，我將把電話轉給艾莉森，讓她更深入地了解我們的財務表現。

Thanks, Darrell. Easterly delivered a solid second quarter, one that reflects both the strength of our real estate portfolio and the consistency of our execution. Net income per share was $0.09 on a fully diluted basis, Core FFO per share was $0.74, a 3% increase year over year and cash available for distribution was $29.3 million. We exceeded consensus expectations for the quarter and remain firmly on track to achieve our full year core FFO per share guidance, reflecting 2% to 3% growth trajectories in 2025. We continue to actively manage a set of federal lease expirations, and our second quarter execution demonstrates steady progress on both 2025 and 2026 renewals.

謝謝，達雷爾。 Easterly 第二季業績穩健，這不僅反映了我們房地產投資組合的強勁表現，也反映了我們執行力的一致性。每股淨利潤（完全攤薄後）為 0.09 美元，每股核心營運現金流 (FFO) 為 0.74 美元，年增 3%，可供分配現金為 2,930 萬美元。本季業績超越市場普遍預期，並有望實現全年每股核心營運現金流 (FFO) 預期，預計 2025 年將實現 2% 至 3% 的成長軌跡。我們繼續積極管理一系列聯邦租賃到期事宜，第二季度的執行情況表明，2025 年和 2026 年的續約工作均取得了穩定進展。

While a few leases remain in process, I want to emphasize, we are not seeing any breaks in tenancy or performance. We believe this reinforces the mission-critical nature of our facilities and the value of our proactive approach to tenant engagement. A great example is the recently finalized five-year firm term renewal with the US Forest Service in Albuquerque. This lease includes built-in annual rent escalators, and we view it as a positive signal that the federal government is modernizing its approach to real estate procurement.

我想強調的是，雖然仍有一些租約正在辦理中，但我們並未發現任何租賃或履約中斷的情況。我們相信，這強化了我們設施的關鍵使命性，以及我們積極主動地與租戶互動的價值。一個很好的例子是最近與阿爾伯克基美國森林服務局完成的五年固定期限續約。該租約包含內建的年度租金自動調整機制，我們認為這是一個積極的信號，表明聯邦政府正在改進其房地產採購方式。

This renewal validates both the quality of our assets and the strength of our tenant relationship. It also highlights our team's ability to manage renewal risk in a complex leasing environment.

此次續約不僅驗證了我們資產的品質以及與租戶的良好關係，也彰顯了我們團隊在複雜的租賃環境中管理續約風險的能力。

As of quarter end, our soft term lease exposure declined from 5.2% at year-end to 4.7%, a clear indication of two key strengths: one, continued progress on renewals and two our ability to work closely with federal agencies to meet evolving mission needs. We remain engaged on the remaining three leases that are set to roll this year and expect resolution consistent with government time lines.

截至本季末，我們的軟期租賃曝險從年底的5.2%下降至4.7%，這清楚體現了兩大關鍵優勢：一是續約工作持續推進；二是我們有能力與聯邦機構緊密合作，以滿足不斷變化的任務需求。我們仍在積極推進剩餘三份將於今年續約的租賃合同，並期望最終解決方案能夠與政府時間表保持一致。

Turning to the balance sheet. We remain well positioned to support continued growth. We have $122 million of revolver capacity available. We expect an additional $115 million in liquidity later this year from the FDA Atlanta lump sum repayment and our leverage ratio remains within our target range of 6.5 to 7.5 times This combination of current liquidity and projected inflows gives us the flexibility to pursue high-quality development and acquisition opportunities without stretching our balance sheet. As Darrell noted, we continue to operate in an environment where our cost of capital is elevated, a challenge largely driven by the near-term overhang from our dividend reset.

談到資產負債表。我們仍然處於有利地位，能夠支持持續成長。我們擁有1.22億美元的循環信貸額度。我們預計今年稍後FDA亞特蘭大分部的一次性還款將帶來1.15億美元的額外流動資金，我們的槓桿率仍保持在6.5至7.5倍的目標範圍內。目前的流動資金加上預期的資金流入，使我們能夠靈活地尋求高品質的開發和收購機會，而無需擴大資產負債表。正如Darrell所指出的，我們仍然在資本成本居高不下的環境中運營，這項挑戰主要源自於股利調整帶來的短期過剩。

Our posture remains unchanged, though. We are focused on selectivity, quality and discipline. We are not pursuing growth for its own sake. We are targeting opportunities that create durable value that align with our strategic mission and that will ultimately attract long-term capital support from aligned shareholders. Looking ahead, we are maintaining our full year 2025 core FFO per share guidance in the range of $2.98 to $3.03 on a fully diluted basis.

然而，我們的策略保持不變。我們專注於精挑細選、追求卓越品質和嚴謹紀律。我們不追求成長本身。我們瞄準的是能夠創造持久價值、與我們策略使命相符、並最終獲得一致股東長期資本支持的機會。展望未來，我們維持2025年全年核心FFO每股收益指引，在完全稀釋後為2.98美元至3.03美元之間。

This guidance reflects the impact of $141 million in operating properties acquired year-to-date and an expected $25 million to $75 million in development-related investment over the course of 2025.

該指引反映了今年迄今收購的 1.41 億美元經營性資產的影響，以及 2025 年預計的 2,500 萬至 7,500 萬美元開發相關投資的影響。

We're pleased with the balance of stability and growth that this outlook represents, and we look forward to keeping you updated on the progress of our pipeline in the second half of this year.

我們對這一前景所代表的穩定性和成長性的平衡感到滿意，並期待在今年下半年向您通報我們的管道進度。

To wrap up, Easterly remains strong, stable and focused. We're executing on renewals, adding high-quality assets, managing risk proactively and maintaining financial flexibility. Most importantly, we're continuing to deliver on the mission our platform was built for providing critical real estate for the agencies that serve the American people.

總而言之，Easterly 依然強勁、穩定且專注。我們正在推動續約，增加優質資產，積極管理風險，並保持財務靈活性。最重要的是，我們將繼續履行我們平台的使命，即為服務美國人民的機構提供重要的房地產資源。

Thank you again for your time and continued partnership.

再次感謝您的時間和持續的合作。

I'll now turn the call back to [Shannan] to open the line for questions.

我現在將電話轉回給 [Shannan]，以便回答問題。

(Operator Instructions)

（操作員指示）

Seth Bergey, Citi.

花旗銀行的塞思‧伯吉 (Seth Bergey)。

Can you talk about kind of your return expectations for the crime lab development project whether that's on an unlevered IRR basis or cap rate?

您能否談談您對犯罪實驗室開發專案的回報預期，無論是基於無槓桿 IRR 還是資本化率？

Sure. So that development is very consistent with our other sort of development growth targets in that we seek to create about a 150-basis-point spread to our cost of capital. So that is certainly in line and that is being developed in the 10s on a cap rate basis.

當然。因此，這項開發與我們其他類型的開發成長目標非常一致，即我們力求在資本成本基礎上實現約150個基點的利差。因此，這肯定是符合預期的，而且這項開發計畫正在以資本化利率為基礎，在10年左右的時間內完成。

And then looking at the guidance assumptions, acquisitions and dispositions kind of underpinning guidance didn't change. I'm curious kind of what's the size of the pipeline of opportunities you're looking at? And just how do you think about kind of what the optimal capital structure is for you guys? .

然後看看指導假設，收購和處置之類的基礎指導並沒有改變。我很好奇，你們正在考慮的機會規模有多大？你們如何看待你們的最佳資本結構？

Sure. So in terms of the pipeline, I think we've shared a ton how we're seeing volume, $1 billion, $1.5 billion. But we're really looking at many deals to find the best view that allow us to meet our growth goals. So in terms of profiles going forward, we do seek to manage leverage typically on a 50-50 basis cost of equity, cost of debt. And we're in the 8s today from a cost of capital perspective. So that allows us to be accretive in the 9s.

當然。就專案管線而言，我想我們已經分享了很多關於交易量（10億美元、15億美元）的預測。但我們實際上正在考察許多交易，以找到能夠實現成長目標的最佳方案。就未來的投資策略而言，我們確實會尋求以股權成本和債務成本各佔一半的比例來管理槓桿。從資本成本的角度來看，我們目前的槓桿率約為8%。這使我們能夠在9%左右實現增值。

(Operator Instructions) I'm currently showing no further questions at this time. I would now like to hand the conference back to Darrell Crate, President and CEO of Easterly Government Properties for closing remarks.

（操作員指示）目前我沒有其他問題。現在，我想將會議交還給伊斯特利政府地產公司總裁兼執行長達雷爾·克雷特，請他致閉幕詞。

Great. Thanks, everybody, for joining us today for our second-quarter conference call. We look forward to continuing to deliver strong, stable results and look forward to seeing all of you next quarter. All the best.

太好了！感謝各位今天參加我們的第二季電話會議。我們期待繼續取得強勁、穩定的業績，並期待下個季度與大家見面。祝一切順利。

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。您可以掛斷電話了。