Global Medical REIT Inc (GMRE) 2023 Q4 法說會逐字稿

Greetings, and welcome to Global Medical REIT fourth-quarter 2023 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Global Medical REIT 2023 年第四季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce Steve Swett, Investor Relations. Thank you. You may begin.

現在我很高興向大家介紹投資者關係部的史蒂夫‧斯威特(Steve Swett)。謝謝。你可以開始了。

Thank you. Good morning, everyone, and welcome to Global Medical REIT's fourth-quarter and full-year 2023 earnings conference call. On the call today are Jeff Busch, Chief Executive Officer; Alfonzo Leon, Chief Investment Officer; and Bob Kiernan, Chief Financial Officer.

謝謝。大家早安，歡迎參加 Global Medical REIT 的第四季和 2023 年全年財報電話會議。今天參加電話會議的是執行長 Jeff Busch；阿方佐·萊昂，首席投資長；和財務長鮑勃·基爾南 (Bob Kiernan)。

Please note these forward-looking statements by the company on this conference call. Statements made on this call may include statements that are not historical facts and are considered forward looking. The company intends these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is making this statement for purposes of complying with those Safe Harbor provisions.

請注意該公司在本次電話會議上的這些前瞻性聲明。本次電話會議中的陳述可能包括非歷史事實且被視為前瞻性的陳述。該公司打算將這些前瞻性聲明納入 1995 年《私人證券訴訟改革法案》中包含的有關前瞻性陳述的安全港條款的範圍，並出於遵守這些安全港條款的目的而做出此聲明。

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, those contained in the company's 10-K for the year ended December 31, 2022, and its other SEC filings. Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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，包括但不限於公司截至本年度的 10-K 中包含的風險和因素2022年12 月31 日及其其他向SEC 提交的文件。本公司不承擔公開更新任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

Additionally, on this call, the company may refer to certain non-GAAP financial measures such as funds from operations, adjusted funds from operations, EBITDAre, and adjusted EBITDAre. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers in the company's earnings release and in filings with the SEC. Additional information may be found on the Investor Relations page of the company's website at www.globalmedicalreit.com.

此外，在這次電話會議上，公司可能會參考某些非公認會計準則財務指標，例如營運資金、調整後的營運資金、EBITDAre 和調整後的 EBITDAre。您可以在公司的收益報告和向 SEC 提交的文件中找到這些非 GAAP 財務指標與目前可比較 GAAP 資料的表格調整表。如需了解更多信息，請訪問公司網站 www.globalmedicalreit.com 的投資者關係頁面。

I would now like to turn the call over to Jeff Busch, Chief Executive Officer of Global Medical REIT. Jeff?

我現在想將電話轉給全球醫療房地產投資信託基金執行長 Jeff Busch。傑夫？

Thank you, Steve. Good morning, and thank you for joining our fourth-quarter and full-year 2023 earnings call. Our high-quality medical real estate portfolio continues to produce steady results. At the end of the fourth quarter, portfolio occupancy was 96.5% with a weighted average lease term of 5.8 years and the portfolio average rent coverage ratio of 4.2 times.

謝謝你，史蒂夫。早安，感謝您參加我們的 2023 年第四季和全年財報電話會議。我們的優質醫療地產投資組合持續產生穩定的績效。截至第四季末，投資組合出租率為96.5%，加權平均租賃期間為5.8年，投資組合平均租金覆蓋率為4.2倍。

For the fourth quarter, reflecting the impact of a loss on extinguishment of debt, we had a net loss attributable to common shareholders of $840,000 or $0.01 per share compared to net income attributable to common shareholders of $369,000 or $0.01 per share in the fourth quarter of 2022. FFO in the fourth quarter was $0.19 per share and unit down $0.03 from the prior-year quarter. And our AFFO was $0.23 per share and units down $0.01 from the prior-year quarter.

第四季度，反映了債務清償損失的影響，普通股股東應佔淨虧損為 840,000 美元，即每股 0.01 美元，而第四季度普通股股東應佔淨利潤為 369,000 美元，即每股 0.01 美元。 2022 年。第四季的 FFO 為每股 0.19 美元，比去年同期下降 0.03 美元。我們的 AFFO 為每股 0.23 美元，單位數量比去年同期下降了 0.01 美元。

In 2023, we patiently managed through continual difficult market conditions for acquisitions and look to opportunistically dispose of assets to reduce our leverage and variable rate debt. We are pleased with the results of our dispositions activity in 2023 as we completed three dispositions at a weighted average cap rate of 6.3% that generated $80.5 million of gross proceeds.

2023 年，我們耐心應對持續困難的收購市場狀況，並尋求機會性資產處置，以降低我們的槓桿率和可變利率債務。我們對 2023 年處置活動的結果感到滿意，因為我們以 6.3% 的加權平均上限完成了三項處置，產生了 8,050 萬美元的總收益。

We used the net proceeds from the dispositions to pay down our variable rate debt, resulting in a leverage ratio at the end of the year of 43.6% to position the company for growth as accretive acquisition opportunities arise. I am proud of our team for efficiently executing these dispositions during the year.

我們使用處置所得淨收益來償還浮動利率債務，年底槓桿率為 43.6%，使公司能夠隨著收購機會的增加而成長。我為我們的團隊在這一年中有效執行這些處置感到自豪。

Looking ahead to 2024, I am excited to see the market for our target acquisitions has improved meaningfully compared to 2023. Significantly, we have a near-term acquisition pipeline of between $95 million and $110 million of medical properties that meet our investment criteria.

展望 2024 年，我很高興看到我們的目標收購市場與 2023 年相比有了顯著改善。值得注意的是，我們近期有一個價值 9,500 萬至 1.1 億美元的醫療房地產收購管道，符合我們的投資標準。

As we look ahead, we continued our accretive growth strategy while maintaining or lowering our portfolio leverage. We believe the strategy of lower leverage growth is prudent in the current environment of sustained higher interest rates and will lead to long-term growth for our stockholders. Overall, I am pleased with the results of 2023 and want to thank the entire team for their hard work and contributions to our results.

展望未來，我們將持續實施增值成長策略，同時維持或降低投資組合槓桿。我們認為，在當前利率持續走高的環境下，低槓桿成長策略是審慎的，並將為我們股東帶來長期成長。總的來說，我對 2023 年的結果感到滿意，並感謝整個團隊的辛勤工作和對我們結果的貢獻。

With that, I turn the call over to Alfonzo to discuss our transaction activity and the current acquisition market conditions in more detail.

之後，我將電話轉給阿方佐，更詳細地討論我們的交易活動和當前的收購市場狀況。

Thank you, Jeff. As Jeff mentioned, we are currently reviewing near-term acquisition opportunities ranging from $95 million to $110 million that meet our investment criteria. Based on a typical timeline for our due diligence process, we are targeting the second half of this year for closing these transactions. As acquisition cap rates have risen in response to buyers' increased cost of capital, we are seeing sellers begin to adjust their expectations, which is leading to more accretive acquisition opportunities.

謝謝你，傑夫。正如傑夫所提到的，我們目前正在審查符合我們投資標準的 9,500 萬美元至 1.1 億美元的近期收購機會。根據我們盡職調查流程的典型時間表，我們的目標是在今年下半年完成這些交易。隨著買家資本成本增加而導致收購上限率上升，我們看到賣家開始調整他們的預期，這導致了更多的收購機會。

We continue to remain actively involved with various physician groups, brokers and corporate sellers to identify acquisition opportunities. This continued dialogue, along with our deleveraging activities in 2023, should allow us to capitalize on potential opportunities, which gives us an advantage over less liquid buyers.

我們繼續積極與各種醫生團體、經紀人和企業賣家合作，以確定收購機會。這種持續的對話，加上我們 2023 年的去槓桿化活動，應該會讓我們能夠利用潛在的機會，這使我們比流動性較差的買家更具優勢。

Additionally, an unattractive debt refinancing market could push previously reluctant sellers our way as these sellers run out of refinancing options. We continue to closely monitor the ever-changing market conditions and are excited about what we see for 2024 and beyond. We will continue to leverage our competitive advantage, including scale, access to capital and the potential utilization of OP unit deal structures to unlock opportunities.

此外，缺乏吸引力的債務再融資市場可能會迫使先前不願出售的賣家失去再融資選擇。我們將繼續密切關注不斷變化的市場狀況，並對 2024 年及以後的情況感到興奮。我們將繼續利用我們的競爭優勢，包括規模、獲得資本的機會以及OP單位交易結構的潛在利用來釋放機會。

I would now like to turn the call over to Bob to discuss our financial results. Bob?

我現在想將電話轉給鮑勃，討論我們的財務表現。鮑伯？

Thank you, Alfonzo. At the end of the fourth quarter 2023, our portfolio consisted of gross investments in real estate of $1.4 billion and included 4.7 million of total leasable square feet, 96.5% occupancy, 5.8 years of weighted average lease term, 4.2 times rent coverage, with 2.1% weighted average contractual rent escalations.

謝謝你，阿方索。截至2023 年第四季末，我們的投資組合包括14 億美元的房地產總投資，包括470 萬平方英尺的總可出租面積、96.5% 的入住率、5.8 年的加權平均租賃期限、4.2 倍的租金覆蓋率、2.1 倍的租金覆蓋率。加權平均合約租金上漲百分比。

In the fourth quarter, our total revenues decreased compared to last year to $33 million. The reduction in revenue is primarily driven by our property dispositions completed during the first nine months of the year, as well as the recognition of reserves for approximately $1.1 million of rent related to our medical office building tenant in East Orange, New Jersey, including approximately $0.2 million of deferred rent.

第四季度，我們的總收入較去年下降至 3,300 萬美元。收入減少主要是由於我們在今年前 9 個月完成的財產處置，以及確認了與新澤西州東奧蘭治醫療辦公大樓租戶相關的約 110 萬美元租金儲備金，其中包括約20 萬美元的遞延租金。

Our total expenses for the fourth quarter were $31.5 million, compared to $34.5 million in the prior-year quarter. The decrease was primarily due to decreased interest expense and operating expenses. Our interest expense in the fourth quarter was $7 million, compared to $8.1 million in the comparable quarter of last year, reflecting the impact of lower average borrowings and lower interest rates compared to the prior-year period.

我們第四季的總支出為 3,150 萬美元，而上年同期為 3,450 萬美元。減少的主要原因是利息費用和營運費用減少。我們第四季的利息支出為 700 萬美元，而去年同期為 810 萬美元，反映出與去年同期相比平均借款和利率較低的影響。

Note that beginning in early August, our credit facility pricing improved by 15 basis points as a result of our reduced leverage. In addition, in early August, certain of our forward-starting interest rate swaps became effective for placing maturity swaps, which reduced the interest cost on our $350 million term loan by 30 basis points compared to prior periods.

請注意，從 8 月初開始，由於槓桿率降低，我們的信用融資定價提高了 15 個基點。此外，8月初，我們的某些遠期利率掉期對到期掉期生效，這使我們3.5億美元定期貸款的利息成本比前期降低了30個基點。

Our operating expenses for the fourth quarter were $6.1 million, compared to $7.1 million in the prior-year quarter, with the decrease in these expenses primarily driven by the changes in our portfolio since the comparable prior-year period. Note that real estate-related taxes represents the largest component of our operating expenses.

我們第四季的營運費用為 610 萬美元，而去年同期為 710 萬美元，這些費用的減少主要是由於我們的投資組合自去年同期以來的變化所致。請注意，與房地產相關的稅費占我們營運費用的最大組成部分。

Regarding these fourth-quarter expenses, $4 million related to net leases for the company recognized the comparable amount of expense recovery revenue of $1.4 million related to gross leases. G&A expenses for the fourth quarter of 2023 were $4.2 million, compared to $4.1 million in the fourth quarter of 2022. Within our current quarter, G&A expenses note that our stock compensation costs were $1.2 million in the quarter and our cash G&A costs were $3 million.

關於這些第四季度費用，與公司淨租賃相關的 400 萬美元確認了與總租賃相關的 140 萬美元費用回收收入的可比較金額。2023 年第四季的一般管理費用為 420 萬美元，而 2022 年第四季為 410 萬美元。在本季度，G&A 支出表明，本季我們的股票補償成本為 120 萬美元，現金 G&A 成本為 300 萬美元。

Looking ahead, we expect our G&A expenses in 2024 to increase to be in the range of $4.4 million and $4.6 million on a quarterly basis. During the fourth quarter, we completed the defeasance of a CMBS loan by making a total payment of $31.5 million, including transaction costs. The net carrying value of the loan was $30.6 million on the date of defeasance resulting in a loss on extinguishment of debt of $868,000. In connection with the defeasance, we subsequently received $8.4 million in escrowed funds held by the CMBS servicer and used those funds to reduce our total debt in leverage.

展望未來，我們預計 2024 年的一般管理費用將按季度增加到 440 萬美元至 460 萬美元之間。第四季度，我們支付了 3,150 萬美元（包括交易費用），完成了 CMBS 貸款的廢止。該貸款在失效之日的帳面淨值為 3,060 萬美元，導致債務清償損失 868,000 美元。與廢止相關，我們隨後收到了 CMBS 服務商持有的 840 萬美元託管資金，並使用這些資金減少了我們的槓桿債務總額。

Net loss attributable to common stockholders for the fourth quarter was $840,000 or $0.01 per share, compared to net income attributable to common stockholders of $369,000 or $0.01 per share in the fourth quarter of 2022.

第四季歸屬於普通股股東的淨虧損為 840,000 美元，即每股 0.01 美元，而 2022 年第四季歸屬於普通股股東的淨利潤為 369,000 美元，即每股 0.01 美元。

FFO in the fourth quarter was $13.3 million or $0.19 per share and unit, compared to $15.5 million or $0.22 per share and unit in the fourth quarter of 2022. AFFO in the fourth quarter was $15.9 million or $0.23 per share and unit, compared to $16.5 million or $0.24 per share and unit in the fourth quarter of 2022.

第四季的 FFO 為 1,330 萬美元，或每股和單位 0.19 美元，而 2022 年第四季的 FFO 為 1,550 萬美元，或每股和單位 0.22 美元。第四季的 AFFO 為 1,590 萬美元，即每股和單位 0.23 美元，而 2022 年第四季的 AFFO 為 1,650 萬美元，即每股和單位 0.24 美元。

Moving on to the balance sheet, as of December 31, 2023, our gross investment in real estate was $1.4 billion, which is down about $60 million from the start of the year, reflecting our disposition activity. At December 31, 2023, we have $618 million of total gross debt with a weighted average remaining term of 2.9 years.

轉向資產負債表，截至 2023 年 12 月 31 日，我們的房地產總投資為 14 億美元，比年初減少約 6,000 萬美元，反映了我們的處置活動。截至 2023 年 12 月 31 日，我們的債務總額為 6.18 億美元，加權平均剩餘期限為 2.9 年。

At quarter end, 85% of our total debt was fixed rate debt, our leverage ratio was 43.6%, and our weighted average interest rate was 3.83%. As previously mentioned, with our reduced leverage ratio during the third quarter, we lowered the SOFR margins in our credit facility by 15 basis points. The SOFR margin on our revolver now at 1.35% and our term loan margins are now 1.30%.

截至季末，我們總負債的85%是固定利率債務，槓桿率為43.6%，加權平均利率為3.83%。如前所述，隨著第三季槓桿率的降低，我們將信貸安排中的 SOFR 利潤率降低了 15 個基點。我們的左輪手槍的 SOFR 利潤率現在為 1.35%，我們的定期貸款利潤率現在為 1.30%。

Lastly, the current unutilized borrowing capacity under the credit facility is $294 million. We did not issue any shares of common stock under our ATM program during the quarter or to date in the first quarter of this year.

最後，目前在信用安排下未利用的借款能力為 2.94 億美元。在本季度或今年第一季迄今為止，我們沒有根據 ATM 計劃發行任何普通股。

With respect to our 2023 lease expiration, we ended the year retaining 78% of the full year's 363,000 expiring square feet and 85% of the related expiring ABR. Our outlook regarding 2024 lease expirations is very good and in general, consistent with our experience on 2023 lease expirations. Currently, we are expecting that our occupancy during 2024 will range between 95% and 96.5%.

關於 2023 年租賃到期，我們在年底保留了全年到期的 363,000 平方英尺的 78% 和相關到期 ABR 的 85%。我們對 2024 年租賃到期的展望非常好，總體而言，與我們對 2023 年租賃到期的經驗一致。目前，我們預計 2024 年的入住率將在 95% 至 96.5% 之間。

Regarding capital expenditures on the portfolio, in 2023, our cash spend was approximately $9.6 million. Currently, we're projecting 2024 capital expenditures of approximately $10 million to $11 million related to building and site improvements and approximately $2 million to $3 million in tenant improvements, primarily associated with lease renewals and lease up to be completed during 2024.

關於投資組合的資本支出，2023 年我們的現金支出約為 960 萬美元。目前，我們預計2024 年與建築和場地改善相關的資本支出約為1000 萬至1100 萬美元，而與租戶改善相關的資本支出約為200 萬至300 萬美元，主要與租約續約和2024 年期間完成的租賃相關。

As we begin the year, we are confident that our resilient portfolio and ample liquidity available to us and continue to help us navigate these challenging market conditions. We are optimistic about moving forward in our acquisition efforts in 2024 and look forward to sharing our progress with you throughout the year.

新年伊始，我們相信我們的彈性投資組合和充足的流動性將繼續幫助我們應對這些充滿挑戰的市場條件。我們對 2024 年收購工作的進展持樂觀態度，並期待與您分享我們全年的進展。

This concludes our prepared remarks. Operator, please open the call for questions.

我們準備好的演講到此結束。接線員，請打開電話提問。

(Operator Instructions) Austin Wurschmidt, KeyBanc.

（操作員說明）Austin Wurschmidt，KeyBanc。

Hey, good morning, guys. Jeff, you highlighted accretive investment opportunities several times throughout your prepared remarks and then hit on the importance of keeping leverage in check in the current environment. I mean, how are you thinking about the economics of these deals and maybe some additional specifics around plans to finance the transactions?

嘿，早上好，夥計們。傑夫，您在準備好的演講中多次強調了增值投資機會，然後談到了在當前環境下控制槓桿的重要性。我的意思是，您如何看待這些交易的經濟性，以及有關交易融資計劃的一些其他細節？

Oh, absolutely. We have basically optimistic plan, which is basically the Fed lowers the rates. These are purchase agreements that we don't have to close for quite a while out there. There's real opportunities for us in the market. So one or two things can happen.

哦，絕對是。我們有基本上樂觀的計劃，基本上就是聯準會降息。這些是我們在相當長一段時間內不需要完成的購買協議。市場上為我們帶來了真正的機會。所以可能會發生一兩件事。

One is we get a lowering of the rates where you could always see it's happened three times that when the market felt the rates were lowering, we moved into $11.50 to $12 type of stock, and that's an opportunistic to use equity and lower it.

一是我們的利率降低了，你總是可以看到這種情況發生了三次，當市場感覺利率降低時，我們買入11.50 美元至12 美元類型的股票，這是利用股權並降低利率的機會主義。

On the other hand, like we showed last year, we have assets that will sell in the low six caps and the acquisitions we're looking at are around eight caps, triple-net and others. So we basically could do either one or two things: trade our six caps of other type of facilities, and buy these eight caps and sort of bring up -- make the spread. Or my preference would be if the market conditions are right, that we go out and we do a combination of equity and debt, and with the equity and debt, our new criteria is to keep lowering -- to be accretive, but also to lower our debt, eventually below 40%. I mean, it will take a while, but our goal is to lower before 40%.

另一方面，就像我們去年展示的那樣，我們擁有的資產將以低於六上限的價格出售，而我們正在考慮的收購約為八上限、三網及其他。因此，我們基本上可以做一兩件事：交易其他類型設施的六隻上限，然後購買這八隻上限並進行某種操作 - 進行價差。或者我的偏好是，如果市場條件合適，我們就會走出去，將股本和債務結合起來，而對於股本和債務，我們的新標準是不斷降低——既要增值，又要降低我們的債務最終低於40%。我的意思是，這需要一段時間，但我們的目標是降低到 40% 之前。

And I think, Alfonzo, you mentioned OP units potentially. I guess how willing are buyers to take OP units and maybe how much can that limit the equity need that you'll need to move forward with these deals?

我認為，阿方佐，你可能提到了作戰部隊。我猜買家購買 OP 單位的意願有多大？也許這會在多大程度上限制您推進這些交易所需的股權需求？

It's hard to predict. I mean, we always try to offer it and discuss and try to stimulate that interest. But it's very idiosyncratic, and really, it's an estate planning decision that the seller has to have and it's pretty hard to predict. And we had one last year and we had -- in 2018, we had a lot of success with that, but it's hard to predict.

很難預測。我的意思是，我們總是嘗試提供它並進行討論並嘗試激發這種興趣。但這是非常特殊的，而且實際上，這是賣方必須做出的遺產規劃決定，而且很難預測。去年我們就做到了，2018 年我們在這方面取得了巨大的成功，但很難預測。

And then just lastly for me, I guess, can you provide some additional details or specifics on sort of the types of deals? I mean, these are just all straight MOB transactions. Anything unique about them? Are they lease opportunities or more stabilized? Just any detail you can provide would be appreciated. Thanks.

最後，我想，您能否提供一些關於交易類型的額外細節或細節？我的意思是，這些都是直接的 MOB 交易。他們有什麼獨特之處嗎？他們有租賃機會還是更穩定？只要您能提供任何細節，我們將不勝感激。謝謝。

Yeah, sure. We're -- our focus is more MOBs and surgery centers. And we're also trying to pursue opportunities that are more single-tenant in nature versus multi-tenant.

好，當然。我們的重點是更多的 MOB 和手術中心。我們也試圖尋求更多單一租戶而不是多租戶的機會。

Rob Stevenson, Janney Montgomery Scott.

羅布史蒂文森，珍妮蒙哥馬利斯科特。

Good morning, guys. Bob, revenues were down $2.6 million quarter over quarter, and operating expenses were down $1.1 million and sort of below where it's been over the last few. Is that due to that reimbursements timing thing that you were talking about or is there something else going on there that we need to be aware of?

早上好傢伙。鮑勃，收入環比下降了 260 萬美元，營運支出下降了 110 萬美元，略低於過去幾季的水平。這是因為您所說的報銷時間問題還是有其他我們需要注意的事情？

Hey, Rob. The big driver for the decrease overall was the disposition activity, number one. But then number two, unique to the fourth quarter was the fact that we put on reserves for $1.1 million. That was a reduction of revenue for the quarter, and that was related to a property we mentioned in the release in East Orange, New Jersey.

嘿，羅布。整體下降的主要驅動因素是處置活動，這是第一位的。但第四季獨有的第二個事實是我們儲備金為 110 萬美元。這是本季收入的減少，這與我們在新澤西州東奧蘭治的新聞稿中提到的一處房產有關。

And just some color on that, is that's a property that we bought in September of 2016. So we've owned it for a while. And until this recent event, we hadn't had any significant issues with the property but the tenant there is Prospect Medical. And while we were working closely with them and keeping us informed of their cash flow issues that they were facing, we concluded that that was the most appropriate accounting.

值得一提的是，這是我們在 2016 年 9 月購買的房產。所以我們已經擁有它有一段時間了。直到最近的活動，我們的房產還沒有任何重大問題，但那裡的租戶是 Prospect Medical。當我們與他們密切合作並隨時了解他們面臨的現金流問題時，我們得出的結論是，這是最合適的會計方法。

So that's the reduction that's in the fourth quarter. But with that said, relative to this location and this tenant, we think that in the longer term that we'll work through the issues with the property, both in terms of payments from Prospect and relative to our establishing new tenants at the facility.

這就是第四季的減少量。但話雖如此，相對於這個地點和這個租戶，我們認為從長遠來看，我們將解決該物業的問題，無論是在 Prospect 的付款方面，還是在該設施建立新租戶方面。

Okay. And then I guess on that, I mean, how -- beyond that tenant, how extensive is the watch list, and is anybody else on cash accruals at this point versus accruals at this point?

好的。然後我想，我的意思是，除了那個租戶之外，觀察名單的範圍有多大，以及目前是否還有其他人在現金應計項目上與應計項目上進行比較？

No, no one else at this point.

不，目前沒有其他人。

Okay. That's helpful. And then, Alfonzo, how are you looking at the these assets that you're focused on acquiring under purchase agreements as well as everything else that's out there today? I mean, is there much availability of debt financing? How broad is the market for these assets?

好的。這很有幫助。然後，阿方佐，您如何看待您根據購買協議重點收購的這些資產以及目前存在的其他所有資產？我的意思是，債務融資有很多可用嗎？這些資產的市場有多大？

I mean, are you guys one of the only players in town or is the -- are local guys able to get financing to be competitive on these type of transactions?

我的意思是，你們是鎮上唯一的參與者之一，還是本地人能夠獲得融資以在此類交易中具有競爭力？

Yeah, no, so that's -- what we're doing is really trying to take advantage. And we always try to position ourselves to play to our strengths and find opportunities that leverage the resources we have. And so right now, our credit facility is a competitive advantage. And so the opportunities that we're looking at is ones where we can use the efficiency and the certainty of close of our balance sheet and trying to get deals that make sense for us, that are accretive. So each case is unique, but we are trying to position ourselves to use the advantages that we have to get deals that are attractive to us.

是的，不，所以我們正在做的就是真正試圖利用這一優勢。我們始終努力定位自己，發揮我們的優勢，並尋找利用我們擁有的資源的機會。因此，目前我們的信用便利性是一項競爭優勢。因此，我們正在尋找的機會是我們可以利用資產負債表結算的效率和確定性，並嘗試獲得對我們有意義、具有增值作用的交易。因此，每個案例都是獨一無二的，但我們正在努力定位自己，利用我們必須獲得的優勢來獲得對我們有吸引力的交易。

Okay. That's helpful, guys. Thank you for the time.

好的。這很有幫助，夥計們。謝謝你的時間。

Bryan Maher, B. Riley.

布萊恩·馬赫，B.萊利。

Thank you, and good morning. Maybe for Bob.

謝謝你，早安。也許是為了鮑伯。

Good morning.

早安.

Give us a little bit more color on this defeasance that you referred to a couple of times, kind of how that played out in layman's terms.

請給我們更多關於您多次提到的這種失職行為的信息，用外行人的話說，這是如何發生的。

Of course, sure. Sure, Bryan. So the CMBS is a $30 million CMBS roughly that we had put on in 2016, and so kind of predates the IPO of the company. But it has been causing us a lot of cash management issues as well as administrative issues. And as more and more cash was getting tied up with the servicer, we saw an opportunity to extinguish the debt and free up the cash that was being held by the servicer. And so we're able to eliminate both the administrative burden and reduce that kind of current and prospective kind of cash management issue that we were dealing with there to free up that cash.

當然，當然。當然，布萊恩。因此，CMBS 是我們在 2016 年投入的約 3000 萬美元的 CMBS，所以是在公司 IPO 之前。但這為我們帶來了很多現金管理問題和行政問題。隨著越來越多的現金與服務商捆綁在一起，我們看到了一個消除債務並釋放服務商持有的現金的機會。因此，我們能夠消除行政負擔，並減少我們正在處理的當前和未來的現金管理問題，以釋放現金。

And so ultimately, we defeased the $31 million CMBS, but ended up -- was $7 million-ish back that we can reduce our overall debt. So through the transaction, we are able to reduce our overall debt and leverage. So that was really the element of it that was -- the successful element of it to reduce debt and leverage from an overall perspective.

因此，最終，我們取消了 3,100 萬美元的 CMBS，但最終得到了 700 萬美元左右的回報，我們可以減少我們的整體債務。因此，透過交易，我們能夠減少我們的整體債務和槓桿。因此，這確實是它的要素——從整體角度來看，它是減少債務和槓桿的成功要素。

Right. But were there any properties involved here? I mean, did you just basically buy out a property that had CMBS against it with your credit facility or something?

正確的。但這裡涉及任何財產嗎？我的意思是，您是否只是用您的信貸額度或其他方式購買了以 CMBS 為抵押的房產？

Right. We refinanced it through the credit facility. And so again, this debt, we had probably had five, six of our kind of original properties from 2016 vintage in the facility. And so those assets were attributable to the CMBS. And again, what the CMBS does is limit your ability relative to those assets. Even as simple things such as maintenance can be burdensome with the CMBS or things you'd want to change at the property, it can be burdensome with the CMBS. And so the idea was to -- and then also again, let alone the cash element -- the amount of cash that was being held by the servicer. So refinancing it through the revolver then frees us up with the ability to have again more flexibility relative to those properties.

正確的。我們透過信貸安排為其再融資。再說一次，這筆債務，我們可能在該設施中擁有 5、6 個 2016 年年份的原始房產。因此，這些資產歸屬於 CMBS。再次強調，CMBS 的作用是限制您相對於這些資產的能力。即使簡單的事情（例如維護）對於 CMBS 來說可能會很麻煩，或者您想要在房產上進行更改，但對於 CMBS 來說也可能會很麻煩。所以我們的想法是——然後再說一次，更不用說現金元素了——服務商持有的現金數量。因此，透過左輪手槍進行再融資可以使我們能夠再次擁有與這些財產相關的更大靈活性。

Got it. That's super helpful. On the CapEx side, you said $10 million to $11 million for 2024, and then you made a comment about $2 million to $3 million in tenant improvements. Is the $2 million to $3 million in the $10 million to $11 million or is in addition to the $10 million to $11 million?

知道了。這非常有幫助。在資本支出方面，您提到 2024 年要投入 1000 萬至 1100 萬美元，然後您又談到了 200 萬至 300 萬美元的租戶改善。200萬至300萬美元是在1000萬至1100萬美元中，還是在1000萬至1100萬美元之外？

It's in addition, but it's harder to predict the timing. So I think that's why I [talked to them] differently because it could be harder to predict the timing and how that will flow and often we'll see -- again, it can be delayed. It may not fall in the same exact -- the timeframes that you're looking at. So I just wanted to break that second piece out.

這是另外的，但很難預測時間。所以我認為這就是為什麼我[與他們]進行不同的交談，因為預測時間安排以及如何進行可能會更困難，而且我們經常會看到 - 再次，它可能會被推遲。它可能不會落在您正在查看的完全相同的時間範圍內。所以我只是想把第二塊拆掉。

Okay, so that's helpful. And maybe just last for Alfonzo. I think in your prepared comments, you talked about back half loaded for acquisitions. So to be clear, you're not expecting anything really in 1Q and 2Q. And can you give us maybe some range of level of magnitude of what you think might happen in the second half?

好的，這很有幫助。也許阿方索最後一次。我認為在您準備好的評論中，您談到了收購的一半負載。因此需要明確的是，您並沒有真正期望第一季和第二季會發生任何事情。您能否告訴我們您認為下半年可能發生的情況的程度？

Yeah. So correct, nothing in 1Q and nothing in 2Q. And what we provided is a range and what we're trying to do is have that be more towards the end of the year than in Q3. So we're trying to weight that more in Q4.

是的。所以正確，第一季沒有任何內容，第二季也沒有任何內容。我們提供的是一個範圍，我們正在努力做的是讓這個範圍比第三季更接近年底。因此，我們試圖在第四季度更加重視這一點。

Okay. Thank you.

好的。謝謝。

Alec Feygin, Robert W. Baird.

亞歷克·費金，羅伯特·W·貝爾德。

Hey, good morning, guys.

嘿，早上好，夥計們。

Good morning.

早安.

First question is on the investment -- is on the investment pipeline. What are the yields that GMRE is securing and is the pipeline made up of any portfolios today or is that all single assets?

第一個問題是關於投資──關於投資管道。GMRE 獲得的收益率是多少？目前的管道是否由任何投資組合組成，還是全部是單一資產？

Yeah. So we're targeting yields that are approximately 8%, and yes, these -- we're targeting the portfolios that right now are difficult to finance and trying to take advantage of the fact that we have our credit facility to complete those transactions.

是的。因此，我們的目標收益率約為 8%，是的，我們的目標是目前難以融資的投資組合，並試圖利用我們擁有信貸便利的事實來完成這些交易。

That's helpful. And second is could you speak on the efforts for leasing the space that is expiring this year? What's been the historic retention rate and for the portfolio? And for any tenants who may have already notified you that they're not re-signing, how is the demand then for that current space?

這很有幫助。其次，您能談談今年即將到期的空間租賃的努力嗎？投資組合的歷史保留率是多少？對於那些可能已經通知您他們不會重新簽約的租戶來說，當前空間的需求如何？

Yeah. So for our 2024 expirations, we mentioned on the call we did in the script that we -- from a retention last year, we were just under 80% on a square feet basis in the mid-80s on an ABR basis. Right now, I think we're largely tracking in that same vicinity, so call it -- use 80% maybe as a proxy on both numbers is how we're looking at it here in late February.

是的。因此，對於 2024 年到期的情況，我們在劇本中的電話會議中提到，從去年的保留率來看，在 80 年代中期，按 ABR 計算，我們的面積略低於 80%。現在，我認為我們主要在同一區域進行追踪，所以稱之為——也許使用 80% 作為兩個數字的代理，這就是我們在 2 月底在這裡看待它的方式。

Thank you. And on the demand for the space that you already know that's not going to be re-signed, how's that looking like?

謝謝。對於您已經知道不會重新簽署的空間的需求，情況如何？

I mean, it's like anything. We're actively working at to try to, again, keep our occupancy as high as we can and just incentive ourselves to move the -- to keep spaces as fully occupied and leased up as possible. So it's a very active process that the whole team is engaged in.

我的意思是，這就像任何事情。我們正在積極努力，再次嘗試保持盡可能高的入住率，並激勵自己搬家——盡可能保持空間被充分佔用和出租。所以這是整個團隊都參與的一個非常活躍的過程。

Got it. Thank you. That's all for me.

知道了。謝謝。這就是我的全部。

There are no further questions in the queue. I'd like to hand the call back to management for closing remarks.

隊列中沒有其他問題。我想將電話轉交給管理階層以供結束語。

I'd like to thank everybody for attending our meeting. Have a good year. Take care.

我要感謝大家參加我們的會議。祝你有個美好的一年。小心。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路並度過美好的一天。