Gladstone Commercial Corp (GOOD) 2024 Q3 法說會逐字稿

Greetings and welcome to Gladstone Commercial Corporation third quarter, 2024 earnings call. At this time. All participants are in a listen-only mode.

歡迎參加 Gladstone Commercial Corporation 2024 年第三季財報電話會議。此時。所有參與者都處於只聽模式。

Question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

正式演講之後將進行問答環節。如果有人需要接線生幫助，請按電話鍵盤上的星號零。提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce David Gladstone, Chief Executive Officer. Thank you, Mr Gladstone. You may begin.

現在我很高興向大家介紹執行長大衛‧格拉德斯通 (David Gladstone)。謝謝你，格萊斯頓先生。你可以開始了。

Well, thank you for that nice introduction and we thank all of you for calling in today. We certainly enjoyed the time we have with you on the phone and wish there were more time to talk with you.

好的，謝謝您精彩的介紹，我們感謝大家今天的來電。我們當然很享受與您通電話的時光，並希望有更多時間與您交談。

Now, we hear from Michael Licalsi. He's our General Counsel and Secretary to give us legal and regulatory matters concerning this call this morning, Michael.

現在，我們聽到麥可‧利卡爾西的來信。邁克爾，他是我們的總法律顧問兼秘書，負責向我們提供有關今天早上這次電話會議的法律和監管事宜。

Thanks David. Good morning, everybody. Today's report may include forward-looking statements under the Securities Act of 1933 the Securities Exchange Act of 1934 including those regarding our future performance.

謝謝大衛。大家早安。今天的報告可能包含根據 1933 年證券法和 1934 年證券交易法做出的前瞻性陳述，包括有關我們未來績效的陳述。

These forward-looking statements involve certain risks and uncertainties that are based on our current plans, which we believe to be reasonable, and many factors may cause our actual results to be materially different for many future results expressed or implied by these forward-looking statements.

這些前瞻性陳述涉及基於我們目前計劃的某些風險和不確定性，我們認為這些計劃是合理的，並且許多因素可能導致我們的實際結果與這些前瞻性陳述明示或暗示的許多未來結果有重大差異。

Including all the risk factors in our forms, 10-Q 10-K and other documents that we file with the SEC. And you can find these on our website that's gladstonecommercial.com. Specifically go to the Investors page or on the SECs website, which is www.sec.gov.

包括我們向 SEC 提交的表格、10-Q 10-K 和其他文件中的所有風險因素。您可以在我們的網站gladstonecommercial.com 上找到這些內容。詳情請造訪投資者頁面或 SEC 網站，即 www.sec.gov。

And we undertake no obligation to publicly update or revise any of these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law that today we will discuss FFO which is funds from operations. FFO is a non-GAAP accounting term defined as net income excluding the gains or losses from the sale of real estate and any impairment losses on property plus depreciation and amortization of real estate assets.

我們沒有義務公開更新或修改任何這些前瞻性陳述，無論是由於新資訊、未來事件或其他原因，除非法律要求今天我們將討論 FFO，即來自營運的資金。FFO 是一個非 GAAP 會計術語，定義為扣除房地產銷售收益或損失以及任何財產減損損失加上房地產資產折舊和攤提的淨收入。

We also discuss core FFO which is generally FFO adjusted for certain other non-recurring revenues and expenses. And we believe these metrics are a better indication of our operating results and allow better comparability of our period over period performance.

我們也討論了核心 FFO，通常是針對某些其他非經常性收入和支出進行調整的 FFO。我們相信這些指標可以更好地反映我們的經營業績，並且可以更好地比較我們的同期業績。

We ask that you visit our website which is Gladstonecommercial.com. Sign up for our email notification service. Also find us on Facebook keyword. There is the Gladstone Companies and Twitter which is at Gladstone.com. Now, today's call is an overview of our results. So we ask that you review our press release and form 10-Q both issued yesterday for more detailed information. Now, with that, I'll turn it over to Gladstone Commercial's President Buzz Cooper.

我們要求您造訪我們的網站 Gladstonecommercial.com。註冊我們的電子郵件通知服務。也可透過 Facebook 關鍵字找到我們。有 Gladstone Companies 和 Twitter（Gladstone.com）。現在，今天的電話會議是我們結果的概述。因此，我們要求您查看昨天發布的新聞稿和 10-Q 表格，以了解更多詳細資訊。現在，我將把它交給格拉斯頓商業公司總裁巴茲庫柏。

Thank you Michael and thank you all for joining today's call. We have several key updates regarding our operations and the broader economic environment. First, would like to share our concern for all those impacted by the recent hurricanes that swept through communities in the Southeast. Our thoughts are with all those affected as it relates to our portfolio.

謝謝邁克爾，也謝謝大家參加今天的電話會議。我們有一些關於我們的營運和更廣泛的經濟環境的重要更新。首先，我想向所有受到最近席捲東南部社區的颶風影響的人們表達我們的關切。我們與所有受影響的人同在，因為這與我們的投資組合有關。

We fortunately sustained minimal impact. Our team has been proactive in reaching out supporting tenants and responding promptly to any needs. Turning to the broader economic environment. The fed in September implemented its first rate cut. Marking a change in policy since rate hikes began in 2022.

幸運的是，我們受到的影響很小。我們的團隊一直積極主動地為租戶提供支援並及時回應任何需求。轉向更廣泛的經濟環境。聯準會9月實施了首次降息。標誌著自 2022 年開始升息以來政策的變化。

They lowered the benchmark federal funds rate by 50 basis points to a range of 4.75% to 5% down from its prior range of 5.25% to 5.5% which had been the highest level in 23 years. This marks a significant reversal after a prolonged period of high rates that negatively impacted capital markets. We expect additional cuts to follow though the timing and magnitude of those cuts depends on economic indicators.

他們將基準聯邦基金利率從先前23年來最高的5.25%至5.5%下調至50個基點至4.75%至5%。這標誌著長期高利率對資本市場產生負面影響後的重大逆轉。我們預計接下來還會有進一步的削減，儘管這些削減的時間和幅度取決於經濟指標。

September us job growth surge with employers adding 254,000 jobs significantly surpassing expectations. While unemployment rate also dipped to 4.1 from 4.2. While this is positive for the overall economy, the strength of the labor market and the higher than expected inflation in September may push out any further rate cuts. Continued momentum could create challenges in balancing inflation concerns with market expectations for lower interest rates.

9 月美國就業成長激增，雇主新增 254,000 個就業崗位，大幅超出預期。而失業率也從 4.2 降至 4.1。雖然這對整體經濟有利，但勞動力市場的強勁和 9 月高於預期的通膨可能會推動進一步降息。持續的動能可能會為平衡通膨擔憂與市場對降息的預期帶來挑戰。

His election is likely to bring further volatility to the markets as fiscal and regulatory policies are debated. We believe our portfolio is well positioned regardless of which party is in office. Despite broader economic uncertainties, our portfolio continues to perform well with industrial real estate being a key growth driver.

隨著財政和監管政策的爭論，他的當選可能會為市場帶來進一步的波動。我們相信，無論哪一方執政，我們的投資組合都處於有利位置。儘管經濟存在更廣泛的不確定性，但我們的投資組合繼續表現良好，工業房地產是主要的成長動力。

According to Collier's industrial market statistics for the third quarter, net absorption in the United States totaled $39 million square feet, bringing the year-to-date total to $115 million square feet.

根據Collier第三季工業市場統計數據，美國的淨吸收量總計3,900萬平方英尺，使年初至今的總吸收量達到1.15億平方英尺。

This compares to $180 million square feet of absorption recorded during the same period of time last year. This reflects a 36% decline due primarily to a particularly slow. First quarter of the 77 markets tracked by tires. 19 saw net absorption over $1 million square feet in Q3. While 26 markets turned negative, we expect leasing to pick up in the fourth quarter driven by increased economic activity.

相比之下，去年同期的吸收量為 1.8 億平方英尺。這反映出 36% 的下降主要是由於特別緩慢。輪胎追蹤的 77 個市場第一季。 19 第三季的淨吸收量超過 100 萬平方英尺。儘管 26 個市場出現負成長，但我們預計，在經濟活動增加的推動下，第四季租賃業將回升。

On the supply side, new construction slowed to $76 million square feet in Q3 which was 54% lower than last year. This has tempered the rise in vacancy rates which increased by only 19 bids which points to a 6.6%.

在供應方面，第三季新建築放緩至 7,600 萬平方英尺，比去年下降 54%。這抑制了空置率的上升，空置率僅增加了 19 個投標，即 6.6%。

However, for longer rate, environment has discouraged new starts from last year and led to declining new completion. So we expect vacancies to begin to decline in 2025.

然而，就長期而言，環境因素從去年開始阻礙了新開工率，並導致新竣工率下降。因此，我們預計職位空缺將在 2025 年開始下降。

Although the broader economic outlook has its challenges, we have not observed any significant decline in tenant credit quality across our portfolio in the longer term industrial real estate, specifically manufacturing related real estate is poised for continued growth driven by reshoring and nearshoring.

儘管更廣泛的經濟前景面臨挑戰，但我們沒有觀察到長期工業房地產投資組合中的租戶信用品質出現任何顯著下降，特別是與製造業相關的房地產在回流和近岸外包的推動下將持續增長。

We are well positioned to capitalize on new opportunities, utilizing our expertise in underwriting middle market credits to grow our portfolio of well located mission critical industrial assets.

我們處於有利位置，可以利用新的機遇，利用我們在承保中間市場信貸方面的專業知識來擴大我們位置優越的關鍵任務工業資產組合。

Now moving on to a few company portfolio specifics for the third quarter. During the quarter, we increased our industrial concentration as a percentage of annualized straight line rent from 62% to 63% and we decreased our office from 34% to 33%.

現在討論第三季公司投資組合的一些細節。本季度，我們將工業集中度佔年化直線租金的百分比從 62% 提高到 63%，並將辦公室比例從 34% 降低到 33%。

We successfully lease or extended more than 242,000 square feet across five assets for a weighted average 7.2 years. These new leases and extensions resulted in a more than 100,000 straight up rent plus up through the third quarter.

我們成功租賃或擴建了五項資產超過 242,000 平方英尺，加權平均期限為 7.2 年。這些新租約和延期導致第三季租金直線上漲超過 10 萬美元。

Our portfolio management team has released a region of more than $2.6 million square feet across 10 assets for an aggregate $3.7 million straight line rent plus up. We have no remaining expiry expiring leases. In 2024 we acquired an industrial asset in Midland Texas for $10 million with a weighted GAAP cap rate of 9.94% and a 15 year term. We successfully sold two medical office assets in Georgia resulting in more than $10.3 million in gain on sale.

我們的投資組合管理團隊已釋放了 10 個資產，面積超過 260 萬平方英尺的區域，直線租金加起來總計 370 萬美元。我們沒有剩餘的到期租約。2024 年，我們以 1,000 萬美元收購了德州米德蘭的工業資產，加權 GAAP 上限率為 9.94%，期限為 15 年。我們成功出售了喬治亞州的兩處醫療辦公室資產，銷售收益超過 1,030 萬美元。

We have collected 100% of cash-based rents and portfolio occupancy remains at 98.5%. Before turning the call over to Gary Garson. Our CFO I will highlight our plans and goals for the next 12 months. We are proud of our progress since COVID, particularly our shift toward a higher concentration of industrial assets since 2018.

我們已收取 100% 的現金租金，組合入住率維持在 98.5%。在將電話轉給加里·加森之前。我們的財務長 I 將重點介紹我們未來 12 個月的計劃和目標。我們對自新冠疫情以來的進展感到自豪，特別是自 2018 年以來我們向工業資產更高集中度的轉變。

All but two acquisitions have been industrial with almost $565 million invested in this property type as capital markets open up. We will continue growing our industrial concentration aiming to exceed 70% of annualized straight line rent in the next 12 months.

隨著資本市場的開放，除了兩起收購外，所有收購都是工業性的，投資了近 5.65 億美元。我們將持續提高產業集中度，目標在未來12個月內超過年化直線租金的70%。

we are actively disposing of Noncore office assets and currently have one new industrial opportunity under contract for$12.1 million set to close in the fourth quarter. We will continue disposing of Noncore office assets. We will use office sale proceeds in our existing cash flow to redeploy into industrial assets.

我們正在積極處置非核心辦公資產，目前擁有一項價值 1,210 萬美元的新工業機會，預計將於第四季完成。我們將繼續處分非核心辦公資產。我們將利用現有現金流中的辦公室銷售收益重新部署到工業資產。

We will leverage our proprietary in house credit underwriting expertise to capitalize on sale leaseback opportunities. A hallmark of our value proposition. Unlike many of our peers, we have the ability to closely monitor our tenant's financial health allowing us to proactively manage risk.

我們將利用我們專有的內部信貸承銷專業知識來利用售後回租機會。我們價值主張的標誌。與許多同行不同，我們有能力密切監控租戶的財務狀況，使我們能夠主動管理風險。

Additionally, we will have the flexibility to structure our leases and covenants in ways that provide added protection, ensuring long term stability for both us and our tenants.

此外，我們將能夠靈活地建立我們的租約和契約，以提供額外的保護，確保我們和租戶的長期穩定。

We will focus on keeping a healthy and flexible balance sheet. As of September 30th, we have liquidity of $80.7 million including $70.2 million of availability under our credit facility and $10.5 million in cash.

我們將專注於保持健康、靈活的資產負債表。截至 9 月 30 日，我們的流動資金為 8,070 萬美元，其中包括我們信貸額度下的 7,020 萬美元可用資金和 1,050 萬美元現金。

We remain below a 50% leverage level as of September 30th, 2025, successfully completing these goals will better position us for our next stage of growth including obtaining a credit rating and a private placement and expanding our industrial portfolio in new and existing markets. I will now turn the call over to Gary to review our financial results for the quarter and liquidity position.

截至2025 年9 月30 日，我們的槓桿水平仍低於50%，成功完成這些目標將使我們更好地為下一階段的增長做好準備，包括獲得信用評級和私募，以及在新市場和現有市場擴大我們的工業投資組合。我現在將把電話轉給加里，以審查我們本季的財務表現和流動性狀況。

Thank you. Buzz.

謝謝。嗡嗡聲。

I'll start my remarks regarding our financial results this morning by reviewing our operating results for the third quarter of 2024.

今天上午，我將首先回顧我們 2024 年第三季的經營業績，就我們的財務業績發表評論。

After share numbers referenced are based on fully diluted weighted average common shares. FFO and core FFO per share available to common stockholders were both 38¢ per share for this quarter. FFO and core FFO available to common stockholders during the third quarter of 2023 were 33 and 34¢ per share respectively.

所引用的股份數量是基於完全稀釋的加權平均普通股。本季普通股股東可獲得的每股 FFO 和核心 FFO 均為每股 38 美分。2023 年第三季普通股股東可獲得的 FFO 和核心 FFO 分別為每股 33 美分和 34 美分。

FFO and Core FFO for the nine months ended, September 30 were dollar seven and 8¢ per share respectively. FFO and Core FFO for the same period in 2023 were dollar 10 and a dollar 11 per share respectively. Same store rents increased by 10.2% in the three months ended September 30 over the same period in 2023 due to a settlement received by one of our properties related to divert maintenance.

截至 9 月 30 日的前九個月，FFO 和核心 FFO 分別為每股 7 美元和 8 美分。2023年同期的FFO和核心FFO分別為每股10美元和11美元。截至 9 月 30 日的三個月內，同店租金較 2023 年同期增長了 10.2%，原因是我們的一處物業收到了與轉移維護相關的和解金。

Our same store rent in the first three quarters of 2024 increased by 1.4% over the same period in 2023. Due to the previously mentioned 2024 settlement partially offset by accelerated rent during the same period. In 2023 our third quarter results reflected total operating revenues of $39.2 million with operating expenses of $28.5 million as compared to operating revenues of $36.5 million and operating expenses of $29.6 million for the same period.

我們2024年前第三季的同店租金較2023年同期成長1.4%。由於先前提到的2024年結算被同期加速租金部分抵銷。2023 年，我們第三季的業績反映了總營業收入為 3,920 萬美元，營業費用為 2,850 萬美元，而同期營業收入為 3,650 萬美元，營業費用為 2,960 萬美元。

In 2023 expenses were higher in 2023 mainly due to a larger impairment charges offset by the waiver of the incentive fee in 2023. Looking at our debt profile, 38% is fixed rate. 53% is hedged floating rate and 9% is floating rate which is the amount drawn on our revolving credit facility and one mortgage note.

2023 年費用較高，主要是因為 2023 年激勵費豁免抵銷了較大的減損費用。看看我們的債務狀況，38% 是固定利率。 53% 是對沖浮動利率，9% 是浮動利率，即從我們的循環信貸安排和一張抵押票據中提取的金額。

As of September 30th, our effective average so was 4.96%. Our outstanding bank term loans are hedged with $310 million of interest rate swaps and the remainder with interest caps. We continue to monitor interest rates closely and update our hedging strategy as needed.

截至 9 月 30 日，我們的有效平均值為 4.96%。我們未償還的銀行定期貸款透過 3.1 億美元的利率掉期進行對沖，其餘的則設有利率上限。我們繼續密切監控利率並根據需要更新我們的對沖策略。

As of today, we have no 2024 loan maturities, and our 2025 maturities are manageable at $10.5 million. As of the end of the quarter, we had $53.3 million of revolver borrowings outstanding during the nine months ended September 30, 2024, we sold $3.45 million shares of common stock under our ATM program raising net proceeds of 40 $9.5 million.

截至今天，我們還沒有 2024 年貸款到期日，2025 年貸款到期日為 1,050 萬美元。截至本季末，截至 2024 年 9 月 30 日的九個月內，我們尚未償還循環借款 5,330 萬美元，我們根據 ATM 計劃出售了 345 萬美元的普通股，籌集了 40 950 萬美元的淨收益。

We also received net proceeds of $700,000 from sales of our series preferred stock through September 30th. We continue to manage our equity activity to ensure that we have sufficient liquidity for upcoming capital requirements and new acquisitions at present, we have three properties held for sale.

截至 9 月 30 日，我們也透過出售我們的系列優先股獲得了 70 萬美元的淨收益。我們繼續管理我們的股權活動，以確保我們有足夠的流動性來滿足即將到來的資本要求和新的收購，目前我們有三處待售房產。

As of today, we have approximately $5.4 million in cash and $73.3 million of availability under our line of credit. We encourage you to also review our quarterly financial supplement posted on our website which provides more detailed financial and portfolio information for the quarter. Our common stock dividend is 30¢ per share per quarter or $1.20 per year.

截至今天，我們的信貸額度下擁有約 540 萬美元的現金和 7,330 萬美元的可用資金。我們鼓勵您也查看我們網站上發布的季度財務補充資料，其中提供了本季更詳細的財務和投資組合資訊。我們的普通股股息為每季每股 30 美分，每年 1.20 美元。

Our stock closed yesterday at $16.01 and our distribution yield on our stock is 7.5% and now I'll turn the program back to Dellafiora.

我們的股票昨天收在 16.01 美元，我們股票的分配收益率為 7.5%，現在我將把該計劃轉回 Dellafiora。

Thank you. That was a good report, Gary and one from Buzz and Michael were both good reports. The team has performed extremely well. Overall, it was a very nice quarter. You've heard a lot today. During the third quarter, we acquired one industrial facility in Midland Texas for about $10 million.

謝謝。這是一份很好的報告，蓋瑞以及巴茲和麥可的報告都是很好的報告。球隊的表現非常出色。總的來說，這是一個非常美好的季度。今天你已經聽到很多了。第三季度，我們以約 1000 萬美元收購了德克薩斯州米德蘭的工業設施。

We sold two noncore properties. These were medical offices in Georgia. We also renewed at least five of our properties. So this company has just continued to move along at a great pace. The commercial team is growing the real estate we own at a really good pace and the team is doing a great job managing the properties we own, especially during these times that I'm not sure what's going on sometimes, but they're challenging and we're managing through it.

我們出售了兩處非核心資產。這些是喬治亞州的醫療辦公室。我們也更新了至少五處房產。所以這家公司繼續快速發展。商業團隊正在以非常好的速度發展我們擁有的房地產，團隊在管理我們擁有的房產方面做得很好，特別是在這些時候，我有時不確定發生了什麼，但他們具有挑戰性和我們正在克服它。

Our team is a strong professional group and they continue to pursue potential quality properties on the list of acquisitions they are reviewing and our acquisition team is seeking strong credit tenants. That's what we're looking for.

我們的團隊是一個強大的專業團隊，他們繼續在他們正在審查的收購清單上尋求潛在的優質房產，我們的收購團隊正在尋找強大的信用租戶。這就是我們正在尋找的。

Okay. We'll stop here and take some questions from people on the phone.

好的。我們將在此停下來回答電話中人們的一些問題。

Thank you.

謝謝。

We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two. If you would like to remove your question from the queue and for a participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star key.

我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中。您可以按星二號。如果您想從佇列中刪除您的問題，並且讓參與者選擇揚聲器設備，則可能需要在按星號鍵之前拿起聽筒。

Our first question is from Gav Mita with alliance global partners. Please proceed.

我們的第一個問題來自 Gav Mita 和全球聯盟合作夥伴。請繼續。

Thank you. Good morning. I wanted to ask you on your, I wanted to ask you in your future results. You talked about a settlement at one of your properties. Can you provide some color? How much that settlement revenue was?

謝謝。早安.我想問你關於你的，我想問你關於你未來的成績。您談到了您的一處房產的和解。你能提供一些顏色嗎？結算收入是多少？

The total amount was $2 million.

總金額為200萬美元。

Okay.

好的。

Second question, I think in your remarks, you said that three properties held for sale, any color on the timing, expected timing of the sale of those three properties.

第二個問題，我認為您在演講中提到了三處待售房產，任何顏色的時間安排，以及這三處房產的預計出售時間。

One of them, we're looking to sell by the end of the year and the other one probably mid next year.

其中一個，我們希望在今年年底前出售，另一個可能在明年中期出售。

Okay. And lastly, maybe big picture, can you provide some color on what you were seeing in the acquisition? Market.

好的。最後，也許是大局，您能否提供一些關於您在收購中看到的情況的資訊？市場。

Acquisitions are, right now toward the end of the year, we've seen quite a few and we're, preceding, underwriting currently, two, we expect to pick up into the first quarter of 2025. As you know, Gaurav there's lots of competition for such, but we are seeing our fair share of actionable deals.

目前，到今年年底，我們已經看到了相當多的收購，目前我們正在承銷兩起收購，預計到 2025 年第一季將會增加。如您所知，Gaurav 存在許多此類競爭，但我們看到了相當多的可操作交易。

Okay. Thank you. That's all I had.

好的。謝謝。這就是我所擁有的一切。

Thank you. Next question.

謝謝。下一個問題。

Our next question is from Dave Storms with Stonegate. Please proceed.

我們的下一個問題來自 Stonegate 的 Dave Storms。請繼續。

Good morning.

早安.

Just wanted to start by touching on the one new property you mentioned you have under contract. Is there any more you can give us maybe around the sense of timing or the anticipated cap rate for this.

我只想先談談您提到的合約下的一處新房產。您是否可以向我們提供更多關於時機或預期上限利率的資訊。

On the closing, it should occur here in the fourth quarter, early fourth quarter on a straight line basis. The cap rate over term is going to be over 9%.

在結束時，它應該發生在第四季度，第四季度初，以直線計算。長期資本化率將超過9%。

Okay. So also, high single digits, just curious, you know, maybe your overall thoughts around the cap rates in the markets right now. And maybe where you see them going.

好的。同樣，高個位數，只是好奇，你知道，也許你對目前市場資本化率的整體想法。也許你會看到他們去哪裡。

We are hopeful, Of course, with interest rates coming down will affect cap rates for us again, a very competitive market. The sellers I think have gotten a little bit of understanding as to where the market is today. We're seeing competition, but cap rates seem to be coming down a bit.

當然，我們希望隨著利率的下降將再次影響我們的上限利率，這是一個競爭非常激烈的市場。我認為賣家已經對當今的市場狀況有了一些了解。我們看到了競爭，但資本化率似乎有所下降。

So, and then just one more for me, it looks like a couple of tenants dropped off quarter over quarter. Is that just the regular running of the business, the selling of the couple offices in Georgia or is there more to the story there?

所以，對我來說還有一個，看起來有幾個租戶逐季減少。這只是公司的正常運營，出售喬治亞州的幾間辦公室，還是有更多的故事？

No, that would be sales.

不，那是銷售額。

Understood. Thank you for taking my questions and good luck in the fourth quarter.

明白了。感謝您回答我的問題，祝第四季好運。

Thanks Dave. Next question.

謝謝戴夫。下一個問題。

Our next question is from Barry Oxford with Colliers. Please proceed.

我們的下一個問題來自高力國際的巴里牛津 (Barry Oxford)。請繼續。

Great. Thanks guys. To build on the caprate question. You guys have been selling industrial, buying, industrial and selling office. What do you see kind of going forward as you implement that plan as far as the cap rate spread between the two? Because it seems like you would probably be losing a little bit on the cap rate.

偉大的。謝謝你們。以caprate問題為基礎。你們一直在賣工業品，買工業品，然後賣辦公室。在實施該計劃時，就兩者之間的上限利率差異而言，您認為未來會發生什麼？因為看起來你可能會在上限利率上損失一點。

Barry. I would agree with you because of the competition within the market. However, that being said, we also with the, obviously the way our stock has performed, looking to bring down our cost of capital. So we've had some success there as we recycle out of the office into industrial.

巴里.由於市場競爭，我同意你的觀點。然而，話雖這麼說，我們顯然也按照我們股票的表現方式，希望降低我們的資本成本。因此，當我們從辦公室回收到工業時，我們已經取得了一些成功。

So we are making ourselves more competitive as we are proceeding.

因此，我們在前進的過程中正在使自己更具競爭力。

Right that, you know, you touched on your stock price. That leads me to my second question. Are you guys going to continue over the next few quarters to have sort of an elevated, you know, tapping the tapping the ATM at an elevated level or not necessarily.

沒錯，你知道，你談到了你的股價。這引出了我的第二個問題。你們是否會在接下來的幾季繼續提高ATM機的使用率，或者不一定。

Barry Well probably continue to tap the ATM for you to fund acquisitions and to maintain a leverage level and maybe to reduce leverage. We, we did a specifically large amount over the last quarter. Our leverage level had kind of tipped up during all the dispositions over the last year. So, I think it was an unusual amount for us, but we will continue to sell under the ATM again to finance acquisitions and to keep our leverage level and.

巴里威爾（Barry Well）可能會繼續利用自動櫃員機為您的收購提供資金並維持槓桿水平，甚至可能降低槓桿。我們，我們在上個季度做了特別大量的工作。在去年的所有處置過程中，我們的槓桿水平有所上升。因此，我認為這對我們來說是一個不尋常的金額，但我們將繼續再次在 ATM 下出售，為收購提供資金並保持我們的槓桿水平。

Potentially lower.

可能更低。

Great. All that makes sense. Thanks guys.

偉大的。這一切都是有道理的。謝謝你們。

Thank you.

謝謝。

Next question.

下一個問題。

As a reminder to star one on your telephone keypad. If you would like to ask a question, our next question is from John Massocca with B Riley Securities. Please proceed.

提醒您在電話鍵盤上加註星標。如果您想問問題，我們的下一個問題來自 B Riley Securities 的 John Massocca。請繼續。

Good morning, everyone morning.

大家早安。

So, it looked like kind of Capex and leasing commissions jumped up a little bit quarter over quarter. Was there something specific driving that? And maybe what's kind of a rule of thumb on expectations for those two kind of cash flow line items for the remainder of the year and into 2025.

因此，看起來資本支出和租賃佣金逐季略有上升。有什麼具體的推動因素嗎？也許對今年剩餘時間和 2025 年這兩種現金流項目的預期有什麼樣的經驗法則？

John specific, as you know, we had a large asset in Lehigh Valley that we fully was fully tenanted. We re tenanted with a new tenant at almost double income on the rent side, but that carried with it obviously a large lease commission as well as modest T I dollars going into that property.

具體來說，約翰，如您所知，我們在利哈伊谷擁有大量資產，我們已完全租用該資產。我們以幾乎雙倍的租金收入與新租戶重新租住，但這顯然帶來了大量的租賃佣金以及投入該房產的少量 T I 美元。

And so that was part of that pickup. But we do not have any foreseen large CapEx items coming forward, but we do know obviously that that is good creative money being put out the door as it relates to the tendency. So some of that CapEx is very quote unquote profitable for us.

這就是這次皮卡的一部分。但我們沒有任何可預見的大型資本支出項目即將推出，但我們顯然知道這是很好的創意資金被投入的大門，因為它與趨勢相關。因此，其中一些資本支出對我們來說是非常有利可圖的。

Okay. And then just to clarify, I think you may have mentioned it in the prepared remarks. But did you address the one remaining 2024 lease expiration? And maybe what's kind of the outlook for, you know, some of the leases expiring in 2025.

好的。然後澄清一下，我想你可能已經在準備好的發言中提到了這一點。但您是否解決了 2024 年剩餘租約到期問題？也許有些租約將於 2025 年到期，其前景如何。

So relative to that, that transaction, we have agreement with a new tenant which will take that property that does mature here in November with an option to buy we've written a 10-year sorry seven-year lease on that, but they have an option to exercise to purchase in the beginning of 2025.

因此，相對於那筆交易，我們與一位新租戶達成協議，該租戶將接受該物業，該物業將於11 月份成熟，並可選擇購買我們已經為此簽訂了為期10 年的令人遺憾的七年租約，但他們已經2025 年初行使購買權。

Our expectation is that they will purchase and relative to 2025 we have four properties that do have maturities in 2025. Of which one is under sale to close in the first quarter of 2025. Other one has a five year lease out for signature.

我們的預期是他們會購買，相對於 2025 年，我們有四處房產確實會在 2025 年到期。其中一處正在出售，預計將於 2025 年第一季完成。另一間有五年租約簽署。

One is current tenant we are discussing re upping and then another one is also in discussion very preliminary. It has a nine-month lead to it as relates to notice that we'll begin discussions and we're very close with that tenant in the first quarter of 2025.

一個是目前的租戶，我們正在討論重新裝修，另一個也在非常初步的討論中。我們將在 2025 年第一季開始與該租戶進行討論，並且與該租戶的關係非常接近，因此有 9 個月的時間。

So, I think as you know, we do stay in front of our tenants and try to get to discussions with them and renewals as early as possible.

因此，我認為如您所知，我們確實站在租戶面前，並嘗試儘早與他們進行討論並續約。

And then just broad strokes, you know, in terms of the lease expirations over the next, you know, call it 15 months. Are those kind of mostly office? Is that industrial? I mean, what's kind of the, the, the kind of broad mix? I don't need an exact number.

然後，就接下來的租約到期而言，您知道，稱之為 15 個月。這些主要是辦公室嗎？那是工業的嗎？我的意思是，廣泛的混合是什麼樣的？我不需要確切的數字。

Yes. No, I would say it's a mix between the two more office than industrial and some of those will be taken care of by dispositions.

是的。不，我想說這是兩者之間的混合體，更多的是辦公室而不是工業，其中一些將通過處置來處理。

And then lastly, you know, the competitive environment, are you seeing maybe with interest rates having particularly on the short end of the curve, you know, ticked down more competition from, you know, some of the buyers that were out there, you know, pre 2022 you know, smaller P/E funds, more finance oriented buyers or, or they've still been kind of cautious getting back into the market.

最後，你知道，競爭環境，你是否看到利率特別是在曲線的短端，你知道，你知道，來自那裡的一些買家的更多競爭，你知道2022 年之前，你知道，規模較小的本益比基金，更多以金融為導向的買家，或者他們在重返市場時仍然持謹慎態度。

I believe, somewhat cautious. We have seen, as you mentioned, the smaller P/E shops, we have seen opportunities there for sale leasebacks that we've seen out there. Brokers are giving opinion of value. So we are seeing more as it relates to opportunities there, but certainly our marketplace is competitive.

我相信，有些謹慎。正如您所提到的，我們已經看到了較小的 P/E 商店，我們看到了那裡的銷售回租機會。經紀人正在給出價值意見。因此，我們看到了更多與那裡的機會相關的信息，但我們的市場肯定具有競爭力。

Okay, I appreciate the color. That's it for me.

好吧，我很欣賞這個顏色。對我來說就是這樣。

Thank you.

謝謝。

There are no more further questions. I would like to turn the conference back over to management for closing remarks.

沒有更多問題了。我想將會議轉回管理階層進行閉幕致詞。

Okay. Thank you very much. All of you. I hope you've all gone out and voted but only voted for people that are pro industrial real estate. So. Thank you all for calling in. That's the end of this. We'll catch you next quarter.

好的。非常感謝。你們所有人。我希望你們都出去投票，但只投票給支持工業房地產的人。所以。感謝大家的來電。這件事就這樣結束了。我們會在下個季度抓住你。

Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開連接，感謝您的參與。