Modiv Industrial Inc (MDV) 2023 Q2 法說會逐字稿

Good day and welcome to Modiv Industrial second-quarter 2023 earnings conference call and webcast. (Operator Instructions) On today's call, management will provide prepared remarks and then we we'll open the call up for your questions. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Margaret Boyce, Investor Relations for Modiv Industrial. Please go ahead.

美好的一天，歡迎來到 Modiv Industrial 2023 年第二季財報電話會議和網路廣播。 （操作員說明）在今天的電話會議上，管理層將提供準備好的評論，然後我們將開始電話會議詢問您的問題。 （操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給莫迪夫工業公司投資者關係部的瑪格麗特·博伊斯 (Margaret Boyce)。請繼續。

Thank you, Melissa. And thank you all for joining us for Modiv Industrial's second-quarter earnings call. We issued our earnings release and our 10-Q before market opened this morning. These documents are available in the Investor Relations' section of our website at modiv.com. Our quarterly supplement will be published later this week.

謝謝你，梅麗莎。感謝大家參加 Modiv Industrial 第二季財報電話會議。我們在今天早上開盤前發布了收益報告和 10 季報告。這些文件可在我們網站 modiv.com 的投資者關係部分取得。我們的季度增刊將於本週晚些時候出版。

I'm here today with Aaron Halfacre, Chief Executive Officer; and Ray Pacini, Chief Financial Officer. On today's call, management will provide prepared remarks, and then we'll open up the call for your questions.

今天我和執行長 Aaron Halfacre 一起來到這裡。和財務長雷·帕西尼。在今天的電話會議上，管理層將提供準備好的發言，然後我們將開始電話會議詢問您的問題。

Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, and other comparable words and phrases. Statements that are not historical facts, such as statements about our expected acquisitions or dispositions are also forward-looking statements.

在開始之前，我想提醒您，今天的評論將包括聯邦證券法規定的前瞻性陳述。前瞻性陳述透過諸如「將」、「是」、「打算」、「相信」、「期望」、「預期」以及其他類似的詞語和短語來識別。非歷史事實的陳述，例如有關我們預期收購或處置的陳述也是前瞻性陳述。

Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including our reports on Form 10-K and 10-Q.

我們的實際財務狀況和經營業績可能與此類前瞻性聲明中預期的存在重大差異。我們向 SEC 提交的文件（包括我們的 10-K 表格和 10-Q 表格報告）中包含了對可能導致我們的結果與這些前瞻性陳述存在重大差異的因素的討論。

With that, I would now like to turn the call over to Aaron. Aaron, please go ahead.

有了這個，我現在想把電話轉給亞倫。亞倫，請繼續。

Thank you, Margaret. Hello, everybody, and thank you for joining our conference call today. Over the last 90 days, we have continued our no-nonsense execution. Let me rattle off a few facts about the work we've done. On August 10, we completed the $42 million sale of our non-core assets at a 7.55% cap rate. And we did this only 90 days after we told you of our plans.

謝謝你，瑪格麗特。大家好，感謝您今天參加我們的電話會議。過去90天裡，我們繼續認真執行。讓我簡單介紹一下我們所做工作的一些事實。 8 月 10 日，我們以 7.55% 的上限利率完成了 4,200 萬美元的非核心資產出售。我們在告訴您我們的計劃後僅 90 天就做到了這一點。

In July, we acquired another $29 million of industrial assets at greater than 8% cap rate, which was on top of the $100 million of assets we've acquired earlier this year. In the past 18 months, we've acquired nearly $300 million of assets, which means nearly 50% of our total AUM was acquired at exceedingly attractive cap rates, while others watch their vintage low cap rate portfolio shrink in value with every Fed rate increase. We did all of this without raising dilutive equity. Instead, we chose to issue nearly $38 million of accretive OP units at an average price 80% greater than our current share price, while at the same time recycling over $100 million of capital from our portfolio repositioning.

7 月份，我們以超過 8% 的資本化率又收購了 2,900 萬美元的工業資產，這是我們在今年稍早收購的 1 億美元資產的基礎上增加的。在過去18 個月中，我們收購了近3 億美元的資產，這意味著我們總AUM 的近50% 是以極具吸引力的資本化利率收購的，而其他人則看著他們老式的低資本化率投資組合的價值隨著聯準會每次升息而縮水。 。我們在沒有籌集稀釋股權的情況下完成了這一切。相反，我們選擇以比目前股價高 80% 的平均價格發行近 3,800 萬美元的增值 OP 單位，同時從我們的投資組合重新定位中回收超過 1 億美元的資本。

Through our continuous disciplined efforts, we have now created an industrial portfolio with an impressive 14.7 weighted average lease term with an equally impressive 2.45% average annual rent profile. However, what I'm most proud of is that we accomplished all of this with just a 12-person team, despite an unprecedented market environment and when few thought we could. I share these facts not to ring a bell but to offer a proof statement.

透過我們不斷的嚴格努力，我們現在創建了一個工業投資組合，加權平均租賃期限為 14.7，年平均租金為 2.45%，令人印象深刻。然而，最令我自豪的是，儘管市場環境前所未有，而且很少有人認為我們可以做到，但我們僅用一個 12 人的團隊就完成了這一切。我分享這些事實不是為了敲響警鐘，而是為了提供一個證明聲明。

We have been saying this since day one, our team knows how to execute and is not afraid of the heavy lifting required of us as we crank out results. Modiv has only just begun to scratch the surface of our opportunity. We needed to work hard to produce these proof statements because rightly so, no one was just going to take our word for it.

從第一天起，我們就一直這麼說，我們的團隊知道如何執行，並且不害怕我們在取得結果時需要承擔的繁重工作。莫迪夫才剛開始觸及我們機會的表面。我們需要努力提供這些證明陳述，因為沒有人會相信我們的話。

As the saying goes, build it and they will come. So we are focused intensely on execution to make it happen. Modiv has a strong vision of our future. We want and know we need to achieve greater scale; we want and know we need to increase our liquidity; we want to, and we know we can become the best pure-play net lease industrial manufacturing REIT in our industry. I personally believe that the next 18 months will be even more transformational than the last 18 months.

俗話說，建好它，他們就會來。因此，我們非常注重執行力以實現這一目標。莫迪夫對我們的未來有著強烈的願景。我們希望並且知道我們需要實現更大的規模；我們希望並且知道我們需要增加流動性；我們希望，而且我們知道我們可以成為我們行業中最好的純淨租賃工業製造房地產投資信託基金。我個人認為，未來 18 個月將比過去 18 個月更具變革性。

Next, you'll begin to see our efforts to raise investor awareness of Modiv Industrial and our compelling investment thesis. When Modiv listed last year, inarguably the noisiest risk-off market environment since 2008. We chose to be patient as we knew that our investment story would evolve. However, now that the majority of our repositioning is behind us, you will see us relentlessly pursue telling our story, highlighting our upside potential, and sharing our vision with as many retail and institutional investors as we can. I believe that investors will like what they hear.

接下來，您將開始看到我們為提高投資者對 Modiv Industrial 的認識所做的努力以及我們引人注目的投資理念。去年 Modiv 上市時，毫無疑問是 2008 年以來最喧鬧的避險市場環境。我們選擇保持耐心，因為我們知道我們的投資故事將會演變。然而，現在我們的大部分重新定位已經過去，您將看到我們堅持不懈地講述我們的故事，強調我們的上升潛力，並與盡可能多的散戶和機構投資者分享我們的願景。我相信投資者會喜歡他們所聽到的。

All right. Enough of me standing on the soapbox. I will now turn the call over to Ray Pacini, our CFO, to review the financial results. Ray?

好的。我已經夠站在肥皂盒上了。我現在將把電話轉給我們的財務長雷·帕西尼 (Ray Pacini)，以審查財務業績。射線？

Thank you, Aaron. I'll begin with an overview of second-quarter operating results. Second quarter adjusted funds from operations or AFFO was $3.3 million or $0.31 per diluted share, compared with $3.6 million or $0.35 per diluted share in the year-ago quarter. The decrease in AFFO was primarily due to the $600,000 increase in the adjustment for straight-line rents related to the 10 industrial manufacturing properties acquired during the first half of 2023, and the lease signed with the state of California in January 2023.

謝謝你，亞倫。我將首先概述第二季的營運表現。第二季調整後的營運資金或 AFFO 為 330 萬美元，即稀釋後每股 0.31 美元，而去年同期為 360 萬美元，即稀釋後每股 0.35 美元。 AFFO 的減少主要是由於與 2023 年上半年收購的 10 處工業製造物業以及 2023 年 1 月與加州簽署的租約相關的直線租金調整增加了 60 萬美元。

Revenue for the second quarter increased 16.7% to $11.8 million compared with $10.1 million in the prior year period, reflecting the benefit of the 16 industrial manufacturing acquisitions we completed since June 30, 2022. Net income attributable to common stockholders improved $1.8 million for the second quarter coming in at $3.1 million or $0.41 per basic and $0.35 per diluted share. This compares to net income attributable to common stockholders of $1.3 million, or $0.17 per basic and $0.14 per diluted share in the prior year period.

第二季營收成長16.7%，達到1,180 萬美元，而去年同期為1,010 萬美元，反映出我們自2022 年6 月30 日以來完成的16 項工業製造收購的收益。第二季歸屬於普通股股東的淨利潤增加了180 萬美元該季度的利潤為 310 萬美元，即每股基本收益 0.41 美元，每股攤薄收益 0.35 美元。相較之下，去年同期歸屬於普通股股東的淨利為 130 萬美元，即每股基本收益 0.17 美元，每股稀釋收益 0.14 美元。

The increase in net income reflects the revenue increase I just described, along with unrealized gains on interest rate swap derivatives. While we experienced a $1.7 million loss on valuation of the interest rate swap derivatives in the first quarter of this year, we had a $3.7 million unrealized gains on valuation of our interest rate swap derivatives in the second quarter, representing an increase gain of [three point] million year over year.

淨利潤的成長反映了我剛才描述的收入成長，以及利率掉期衍生性商品的未實現收益。雖然今年第一季我們的利率掉期衍生性商品估值出現了170 萬美元的損失，但第二季我們的利率掉期衍生性商品估值出現了370 萬美元的未實現收益，相當於增加了[三點]年同比。

This unrealized gain on swap valuations, along with cash derivative settlements of $1.4 million, offset interest expense paid to our lenders resulting in negative interest expense of $180,000 for the quarter. We've captured this somewhat unusual phenomenon of negative interest expense for the quarter for the new caption in our statement of operations, which we've termed interest expense, net of derivative settlements, and unrealized gains, and interest rate swaps.

掉期估值的未實現收益以及 140 萬美元的現金衍生性商品結算抵銷了支付給貸方的利息費用，導致本季出現 18 萬美元的負利息費用。我們在營運報表中的新標題中捕捉到了本季負利息支出這一有些不尋常的現象，我們將其稱為利息支出，扣除衍生性商品結算、未實現收益和利率掉期。

As I explained during our first-quarter call, the first swaps did not qualify for hedge accounting treatment because it has a built-in onetime cancellation option available on December 31, 2024. We structured this cancellation option when we entered into the swap in May 2022 because it reduced the swap rate by approximately 50 basis points. As a result, depending on fluctuations in the forward SOFR curve between now and December 2024, we may continue to experience volatility in net interest expense through gains or losses on the valuation of our swaps.

正如我在第一季電話會議中解釋的那樣，第一批掉期不符合對沖會計處理的條件，因為它有一個內建的一次性取消選項，可於2024 年12 月31 日使用。我們在5月進入掉期時建構了此取消選項2022 年，因為它將掉期利率降低了約 50 個基點。因此，根據從現在到 2024 年 12 月的遠期 SOFR 曲線的波動，我們可能會因掉期估值的損益而繼續經歷淨利息支出的波動。

We will continue to benefit from our interest rate hedges with our $250 million term loan outstanding today at a weighted average interest rate of 4.53% based on our leverage ratio of 47% as of June 30, 2023. We also had interest income of $217,000, which reflects interest earned on cash proceeds from April 2023 draws on our term loan prior to utilizing such cash to acquire industrial manufacturing properties in May 2023.

我們將繼續受益於我們的利率對沖，我們今天未償還的2.5 億美元定期貸款的加權平均利率為4.53%（基於截至2023 年6 月30 日我們的槓桿率為47%）。我們還有217,000 美元的利息收入，這反映了從 2023 年 4 月起現金收益賺取的利息，在 2023 年 5 月利用這些現金收購工業製造物業之前提取了我們的定期貸款。

Now turning to our portfolio, we've continued to focus on acquiring industrial manufacturing properties. Year-to-date through August 14, we acquired $129.8 million across 12 industrial manufacturing properties at an attractive blended initial cap rate of 7.8% and a weighted average cap rate of 10.3%. During the second quarter, we acquired $89 million of industrial manufacturing properties. And in July, we acquired an additional $29 million of industrial manufacturing properties.

現在轉向我們的投資組合，我們繼續專注於收購工業製造資產。今年迄今為止，截至 8 月 14 日，我們以 7.8% 的綜合初始上限和 10.3% 的加權平均上限收購了 12 個工業製造資產，價值 1.298 億美元。第二季度，我們收購了價值 8,900 萬美元的工業製造資產。 7 月，我們又收購了價值 2,900 萬美元的工業製造地產。

On July 3, we acquired an industrial manufacturing property located in Piqua, Ohio, leased to Vistech Manufacturing Solutions for $13.5 million. Vistech has a 20-year operating history and is a leading provider of niche automotive parts in the noise, vibration, and harness category.

7 月 3 日，我們收購了位於俄亥俄州皮誇的一處工業製造地產，以 1,350 萬美元的價格出租給 Vistech Manufacturing Solutions。 Vistech 擁有 20 年的營運歷史，是噪音、振動和線束類別中小眾汽車零件的領先供應商。

On July 11, we acquired another industrial manufacturing property located in Andrews, South Carolina, leased to SixAxis for $15.5 million. SixAxis has over a 20-year operating history and is a designer and manufacturer of highly engineered, patented, and modular solutions in the workplace safety market.

7 月 11 日，我們收購了位於南卡羅來納州安德魯斯的另一個工業製造地產，該房產以 1,550 萬美元的價格出租給 SixAxis。 SixAxis 擁有 20 多年的營運歷史，是工作場所安全市場上精心設計、獲得專利的模組化解決方案的設計者和製造商。

On August 10, we sold our non-core portfolio of 13 legacy retail and office assets to Generation Income Properties for $42 million at an exit cap rate of 7.55%. Transaction consideration included $30 million in cash and $12 million of GIPR preferred stock, which will pay monthly dividends at an annual rate of 9.5%. For the sale of these 13 legacy retail and office assets and our additional $29 million of industrial acquisitions, we have achieved our goal of having a super majority of industrial manufacturing exposure.

8 月 10 日，我們以 4,200 萬美元的價格將由 13 項遺留零售和辦公資產組成的非核心投資組合以 7.55% 的退出上限出售給 Generation Income Properties。交易對價包括3000萬美元現金和1200萬美元GIPR優先股，該優先股將按年利率9.5%每月支付股息。透過出售這 13 項遺留零售和辦公資產以及額外 2,900 萬美元的工業收購，我們已經實現了擁有絕大多數工業製造業務的目標。

As Aaron mentioned, for the remainder of the year, we are focused on the disposition of our non-industrial assets. Following the sale of non-industrial assets, the GIPR, our industrial portfolio exposure includes 40 of our 45 properties, representing 76% of pro forma NOI as of June 30, 2023. With a WALT of 14.7 years and a weighted average annual rental increases of 2.45%. Our three tactical non-core properties now represent 20% of the portfolio with a 14.9-year WALT and 2.3% annual rent bumps. And the two remaining other non-core legacy office properties represent only 4% of the portfolio.

正如亞倫所提到的，在今年剩下的時間裡，我們的重點是非工業資產的處置。在出售非工業資產 GIPR 後，我們的工業投資組合風險包括 45 處房產中的 40 處，佔截至 2023 年 6 月 30 日預計 NOI 的 76%。WALT 為 14.7 年，加權平均年租金增長 2.45%。我們的三個戰術非核心物業目前佔投資組合的 20%，WALT 為 14.9 年，年租金上漲為 2.3%。其餘兩個非核心遺留辦公物業僅佔投資組合的 4%。

Annualized base rent for our 45 properties totaled $41 million on a pro forma basis as of June 30, 2023, reflecting the recent acquisitions and dispositions. We are currently marketing our Nashville, Tennessee, office property leased to Cummins and plan to begin marketing our San Diego office property current leased to Solar Turbines later this year. We categorize tactical non-core assets as those assets that offer compelling value add or opportunistic investment characteristics when measured over near term or interim holding periods.

截至 2023 年 6 月 30 日，我們 45 處房產的年化基本租金總計 4,100 萬美元，反映了最近的收購和處置。我們目前正在行銷田納西州納許維爾租給康明斯的辦公物業，並計劃在今年稍後開始行銷目前租給 Solar Turbines 的聖地牙哥辦公物業。我們將戰術性非核心資產歸類為在短期或中期持有期間衡量時提供令人信服的增值或機會主義投資特徵的資產。

These three assets include our KIA auto dealership property located in a prime location in Los Angeles County acquired in January 2022, which was structured as an UPREIT transaction, resulting in a favorable equity issuance of $32.8 million in Class C OP Units at a cost basis of $25 per share. Our 12-year lease to the state of California's Office of Emergency Services executed in January 2023 for one of our existing assets in Sacramento, California, that includes an attractive purchase option by the tenant, which we believe is a favorable probability of being executed upon in the next 24 months.

這三項資產包括我們於2022 年1 月收購的位於洛杉磯縣黃金地段的起亞汽車經銷店物業，該物業是一項UPREIT 交易，最終以3,280 萬美元的C 級OP 單位有利的股權發行，成本基礎為每股 25 美元。我們於2023 年1 月簽署了加州緊急服務辦公室的12 年租約，租約涉及我們位於加州薩克拉門託的一項現有資產，其中包括對租戶有吸引力的購買選擇權，我們認為執行該租約的可能性較高在接下來的24個月。

And our third tactical non-core asset is a property leased to Costco located in Issaquah, Washington, which offers compelling redevelopment opportunities when Costco's lease expires in July 2025, given its higher density interlocation and the fact that the land is known for additional uses to include flex/R&D and multifamily.

我們的第三個戰術非核心資產是位於華盛頓州伊瑟闊的一處出租給Costco 的房產，鑑於其較高的密度交錯以及該土地以其他用途而聞名，當Costco 的租約於2025 年7 月到期時，該資產提供了引人注目的重建機會。包括靈活/研發和多戶型。

Following the GIPR transaction, Modiv Industrial's 45 property portfolio has an attractive weighted average lease term of 14.3 years and approximately 34% of our tenants or their parent companies have an investment-grade credit rating from a recognized credit rating agency of BBB- or better.

GIPR 交易完成後，Modiv Industrial 的45 個房地產投資組合的加權平均租賃期限為14.3 年，具有吸引力，我們約34% 的租戶或其母公司擁有公認信用評級機構BBB- 或更高的投資級信用評級。

Now turning to our balance sheet and liquidity. As of June 2023, total cash and cash equivalents were $9.9 million, and we had $294 million of debt outstanding, consisting of $44 million of mortgages and $250 million of outstanding borrowings on our $400 million credit facility. Based on interest rate swap agreements we entered into during 2022, 100% of our indebtedness as of June 30, 2023, held a fixed interest rate with a weighted average interest rate of 4.52% based on our leverage ratio of 47% at quarter end.

現在轉向我們的資產負債表和流動性。截至 2023 年 6 月，現金及現金等價物總額為 990 萬美元，未償還債務為 2.94 億美元，其中包括 4,400 萬美元抵押貸款和 4 億美元信貸額度中的 2.5 億美元未償還借款。根據我們在 2022 年期間簽訂的利率掉期協議，截至 2023 年 6 月 30 日，我們 100% 的債務持有固定利率，加權平均利率為 4.52%，基於季末槓桿率為 47%。

We borrowed $21 million on our revolver during July 2023 to fund the industrial acquisitions I discussed earlier, and we will repay the revolver with proceeds from the recent sale of the 13 non-industrial assets this month. As previously announced, our Board of Directors declared a cash dividend for common shares of approximately $0.095 for the months of July, August, and September 2023, representing an annualized dividend rate of $1.15 per share of common stock. This represents a yield of over 9% based on the recent share price of our common stock.

我們在 2023 年 7 月借了 2,100 萬美元的左輪手槍，為我之前討論過的工業收購提供資金，我們將用本月最近出售 13 項非工業資產的收益償還左輪手槍。如同先前所宣布的，我們的董事會宣布 2023 年 7 月、8 月和 9 月的普通股現金股利約為 0.095 美元，相當於每股普通股的年化股息率為 1.15 美元。根據我們普通股的近期股價計算，這意味著收益率超過 9%。

I'll now turn the call back over to Aaron.

我現在將把電話轉回亞倫。

Thanks, Ray. Having shared my two cents earlier in the call and not wanting to bore you with more prepared remarks, I know you're going to have questions about the GIPR transaction of non-core assets and what lies ahead? I figured it'd be best to answer your questions directly. So to that end, let's begin the Q&A. Operator?

謝謝，雷。早些時候我在電話會議中分享了我的兩分錢，並且不想用更多準備好的言論讓您感到厭煩，我知道您會對非核心資產的 GIPR 交易以及未來會發生什麼有疑問？我認為最好直接回答你的問題。為此，讓我們開始問答。操作員？

(Operator Instructions) Bryan Maher, B. Riley Securities.

（操作員指示）Bryan Maher，B. Riley Securities。

(technical difficulty) they're non-core, nontaxable, whatever you want to call them. Nashville is in the market now, and San Diego sometime in the second half of this year. Is that correct?

（技術難度）它們是非核心的，不徵稅的，無論你怎麼稱呼它們。納許維爾現已上市，聖地牙哥將於今年下半年上市。那是對的嗎？

Yeah. The reason San Diego isn't up already is, it actually -- one of our -- we have two properties in the same subdivision. And so they had one common parcel, even though they're not located in each other, so we're in the process of splitting the parcels so that we can comfortably peel off Solar Turbines. So we anticipate taking that out in the late third or early fourth to the market.

是的。聖地牙哥還沒有起來的原因是，它實際上是我們的一個，我們在同一分區擁有兩處房產。因此，他們有一個共同的地塊，儘管它們並不位於彼此之中，因此我們正在拆分這些地塊，以便我們可以輕鬆地剝離 Solar Turbines。因此，我們預計將在第三季末或第四季初將其推向市場。

Okay. And then the three tactical ones, the KIA, the Costco, and the California lease, those are just going to hold for some period of time. Is that correct?

好的。然後是三個戰術性的，起亞、好市多和加州租賃，這些只會持續一段時間。那是對的嗎？

Correct. Unless something opportunistic comes about. I think the first two that would move would be OES and Costco. I think, KIA, you should expect it to be in the portfolio for a bit, the way we structure the OP Unit transaction. It's also 25-year lease term initially, so we like where it's at. But I think there's a chance that Costco and OES will self-liquidate favorably over the next, call it, 24 months.

正確的。除非出現什麼機會主義的事情。我認為最先搬家的兩家是 OES 和 Costco。我認為，起亞，你應該期望它會在投資組合中出現一段​​時間，就像我們建立 OP Unit 交易的方式一樣。最初的租賃期限也是 25 年，所以我們喜歡它的現狀。但我認為 Costco 和 OES 有可能在接下來的 24 個月內進行有利的自我清算。

And then can you give us any idea what you're thinking about in the way of cap rates for Nashville and San Diego?

那麼您能否告訴我們您對納許維爾和聖地牙哥的資本化率有何想法？

No. We -- call for offers is this week for the broker who's running Nashville, so we don't know what to expect. We are -- I will say that that one's being positioned as an industrial flex conversion. So it's a super tight market. We do our analysis. We think the highest and best use is in industrial flex conversion.

不。我們本周正在為經營納許維爾的經紀人徵集報價，所以我們不知道會發生什麼。我們——我想說的是，它被定位為工業柔性轉換。所以這是一個超級緊張的市場。我們進行分析。我們認為最高和最好的用途是工業柔性轉換。

We don't want to do it ourselves. We've already taken the impairment charge in the first quarter, and we're looking to create -- get that off the balance sheet and create some liquidity. Don't know the cap rate on that one.

我們不想自己做。我們已經在第一季扣除了減損費用，我們希望將其從資產負債表中剔除，並創造一些流動性。不知道那個的上限利率。

That said on the San Diego, we've, actually in the past, received a couple of unsolicited bids that would be gains to our NAV, which clearly were trading well below our NAV. So that's a favorable submarket for sure. But we haven't started the BOV process on that one yet.

也就是說，在聖地牙哥，我們實際上在過去收到了一些主動出價，這些出價將為我們的資產淨值帶來收益，而這些出價顯然遠低於我們的資產淨值。所以這肯定是一個有利的子市場。但我們還沒有啟動該專案的 BOV 流程。

Just last for me on the expenses. They seem to be pretty well under control. But I did notice on page 16 of the Q, the commentary there around, I guess, there was some property tax and maybe reallocating how that's done. Is there anything funky that we should be aware of as we model out expenses? Or is that better to discuss offline?

就剩下我的開支了。他們似乎受到很好的控制。但我確實注意到 Q 第 16 頁的評論，我猜，有一些財產稅，也許會重新分配如何完成。在計算費用模型時，有什麼值得我們注意的嗎？還是線下討論比較好？

Ray, you want to take that?

雷，你想要那個嗎？

Yeah. I mean there's nothing funky. I mean we can talk about it further offline. But I think you could expect the expenses to be fairly in line with where we are today.

是的。我的意思是沒有什麼時髦的。我的意思是我們可以在線下進一步討論。但我認為你可以預期這些費用與我們今天的情況相當一致。

I would say, we manage them pretty tightly. Yeah. Great. Thanks.

我想說，我們對它們的管理非常嚴格。是的。偉大的。謝謝。

No, when you're renting, you are also moving your office space yourself. That's indicative of what we would expect for expenses if you guys (multiple speakers) --

不，當您租房時，您也在自行搬遷辦公空間。這顯示了我們對費用的預期，如果你們（多位發言者）－

Yeah. Thank you.

是的。謝謝。

Rob Stevenson, Janney Montgomery Scott.

羅布史蒂文森，珍妮蒙哥馬利斯科特。

Good morning there, guys. Is there a lockup on the generation preferred shares and is that a long-term hold? And what's your plan there?

早安，夥計們。第一代優先股是否有鎖定期且是長期持有？你在那裡有什麼計劃？

So the preferred has a feature that allows them to redeem in shares or cash. And the mechanism is, up until March 15, we've actually created a collar range that would determine the share price that they could -- if they were to issue those shares, they could give us the shares. So I'd say, how we look at the preferred is underwriting some probability that they may issue equity and give us shares.

因此，優先股有一個功能，允許他們贖回股票或現金。其機制是，直到 3 月 15 日，我們實際上已經創建了一個範圍，該範圍將決定他們可以發行的股票價格 - 如果他們要發行這些股票，他們可以給我們這些股票。所以我想說，我們如何看待優先股是承保他們可能發行股票並向我們提供股票的一些可能性。

In the event that they do give us shares and what we did -- net of anything we haven't sold in advance because we're allowed to sell the preferred off if we wanted to. We would then look to distribute any common shares out to our shareholders as a distribution, so as not to have any consolidation risks of their operations.

如果他們確實給了我們股票以及我們所做的事情——扣除我們沒有提前出售的任何東西，因為如果我們願意的話，我們可以出售優先股。然後，我們將尋求將任何普通股作為分配分配給我們的股東，以免其業務出現任何合併風險。

So we don't have any formal restriction on time trading. If we find a private party that's interested in some of our preferred, we'll go talk to them in best interest. And then net of any sales that we haven't done in advance, assuming that we get comments from them, which I think is their objective, then we would look to distribute that out to our shareholders.

所以我們對時間交易沒有任何正式的限制。如果我們發現一個私人團體對我們喜歡的一些感興趣，我們會出於最大利益去與他們交談。然後扣除我們沒有提前完成的任何銷售，假設我們得到他們的評論，我認為這是他們的目標，那麼我們將尋求將其分配給我們的股東。

And you said that, that timing is March.

你說過，那個時間是三月。

They have. So the timing is -- to them, they have to have notified us that they wish to redeem with shares prior to March 15. There are certain in the articles supplementary of their documents, the details of the mechanics. But basically, there's a mechanism by which they could determine how many shares they would issue us, and its [caller-bound] until March 15. After March 15, we're open to accepting cash or shares. But after that date, it's a de novo negotiation on how many shares.

他們有。所以時機是——對他們來說，他們必須在 3 月 15 日之前通知我們他們希望用股票贖回。他們的文件補充文章中有一些具體的機制細節。但基本上，他們可以透過一種機制來決定向我們發行多少股票，並且在 3 月 15 日之前[調用者限制]。3 月 15 日之後，我們願意接受現金或股票。但在那一天之後，就需要重新就股份數量進行談判。

Okay. And in the interim, Ray, that will just appear is whatever, $285,000 a quarter in interest income or is that going to be somewhere else?

好的。在此期間，雷，無論怎樣，每季的利息收入將達到 285,000 美元，還是會在其他地方？

Yeah, it will be another income.

是的，這將是另一筆收入。

Okay. And then the EMC lease included a nine-month purchase option. Are they likely to buy? Is that why it's a shorter-term option or is that (multiple speakers) some sort of design there?

好的。然後，EMC 的租約包括九個月的購買選項。他們有可能購買嗎？這就是為什麼它是短期選擇還是（多個揚聲器）某種設計？

This is the tenant that -- we had this sell-for-sale. This property was locked up under contract. It's an owner-user. They attained SBA financing to close it. But they've actually asked to wait. They thought they would better have favorable financing rates as they went on a little bit. They wanted -- they were willing to sign a 10-year lease, but they wanted to be able to purchase it sometime at the same price that they had negotiated. And we said, that's fine. We'll do that, but we'll give you a finite window to do that. And so we signed the 10-year lease.

這是我們出售的租戶。該財產已根據合約被鎖定。這是一個所有者用戶。他們獲得了 SBA 融資以關閉該專案。但他們實際上要求等待。他們認為，隨著時間的推移，他們最好能獲得優惠的融資利率。他們想要——他們願意簽署一份為期 10 年的租約，但他們希望能夠在某個時候以他們協商好的價格購買它。我們說，沒關係。我們會這樣做，但我們會給你一個有限的視窗來做到這一點。就這樣我們簽了10年的租約。

And if -- they decided they like the financing. And what we understand is they probably will execute that sooner than the nine months. But if they don't, we have an occupied tenant. So we didn't want to keep it tied up on the market. If they wanted to wait for time, we figured, we'd collect rent. And so that turned out to be a win-win for both of them. They could better time their debt exposure, and we got a lease.

如果—他們決定喜歡融資。據我們了解，他們可能會在九個月內執行該計劃。但如果他們不這樣做，我們就有一個被佔用的租戶。所以我們不想讓它束縛在市場上。我們想，如果他們想等待時間，我們就會收取租金。事實證明，這對他們來說是雙贏的。他們可以更好地掌握債務風險，我們得到了租約。

Okay. And then given that you could wind up having proceeds from there, you've got the proceeds from the big sale, how deep is the pipeline today? And what's your time frame in expectations in terms of redeploying that capital into industrial assets?

好的。然後考慮到你最終可能會從那裡獲得收益，你已經從大銷售中獲得了收益，那麼今天的管道有多深？您預計將這些資本重新部署到工業資產的時間範圍是多少？

Yeah, so how we think about near term. So we have $250 million in the term loan. We're paying off the revolver with the proceeds that we got from GIPR. Next asset that would the mortgage debt will pay off is the OES, that's coming due in March of next year. I think we're going to make a partial payment here real soon.

是的，那麼我們如何看待近期。所以我們有 2.5 億美元的定期貸款。我們正在用從 GIPR 獲得的收益來還清左輪手槍。下一個可以償還抵押貸款債務的資產是 OES，將於明年 3 月到期。我想我們很快就會在這裡支付部分款項。

And so proceeds from Cummins, proceeds from Solar, proceeds from EMC, any proceeds from the sale of the preferred GIPR will pay off that mortgage debt because that's coming due, and that just increases the equity profile. And then after that, we would look to do acquisitions.

因此，康明斯的收益、太陽能的收益、EMC 的收益以及出售優先 GIPR 的任何收益都將償還抵押貸款債務，因為該債務即將到期，而這只會增加股本狀況。之後，我們會考慮進行收購。

In terms of pipeline, we are really, really -- we spent a lot of time sourcing and identifying out there. So pipeline is not my issue. It's clearly -- equity is my issue, right? I mean, if you look at it right now, I think we've traded 2,800 shares. So it's something like $30,000 worth of shares are traded, and we have almost 8 million shares outstanding.

就管道而言，我們真的、真的——我們花了很多時間進行採購和識別。所以管道不是我的問題。很明顯——公平是我的問題，對吧？我的意思是，如果你現在看一下，我想我們已經交易了 2,800 股。因此，大約有價值 3 萬美元的股票被交易，我們有近 800 萬股流通股。

Our investors which are legacy, they just don't sell, right, so we don't have much liquidity. And we've been disciplined about issuing. I could buy $700 million of properties tomorrow at an attractive cap rates.

我們的投資者是傳統的，他們只是不出售，對吧，所以我們沒有太多的流動性。我們在發行方面一直遵守紀律。明天我可以以有吸引力的上限利率購買價值 7 億美元的房產。

So we're constantly looking. I don't think pipeline is an issue. We've gotten very selective. Now that we've repositioned as much as we can in the near term, we're not looking to chase anything down.

所以我們一直在尋找。我認為管道不是問題。我們變得非常有選擇性。既然我們已經在短期內盡可能地重新定位，我們不打算追趕任何東西。

If we find something that's super compelling, we'll act on it. We're not afraid to. We clearly have a revolver. And I think, my focus now, which is, heretofore has been lots of traveling, lots of structuring, lots of doing things like this, and cleaning up. I think now you'll see me calling upon the shops that covers yours included to do NDRs. We'll start going out and talking to investors.

如果我們發現一些非常引人注目的事情，我們就會採取行動。我們不怕。我們顯然有一把左輪手槍。我想，到目前為止，我現在的重點是大量旅行、大量結構化、大量做類似的事情以及清理工作。我想現在您會看到我要求包括您在內的商店進行 NDR。我們將開始出去與投資者交談。

If you think about that 2,800 shares traded at $30,000, if I'm starting to talk like hitting the road, really talking to IRAs, and FAs, and institutions, it's not hard to create some volume. And I think that's our next focus. And I think that's our next focus for really the balance of the year. We'll always be looking for something that achieves scale. And I want to try to find something that's scalable that when you guys tune in for every quarter, you have to pay attention because I'm not going to lead you prior to the quarter.

如果你考慮一下 2,800 股的交易價格為 30,000 美元，如果我開始像上路一樣談論，真正與 IRA、FA 和機構交談，那麼創造一些交易量並不難。我認為這是我們的下一個重點。我認為這是我們今年餘下時間的下一個重點。我們將一直在尋找能夠實現規模化的東西。我想嘗試找到一些可擴展的東西，當你們每個季度收聽時，你們必須注意，因為我不會在該季度之前引導你們。

Do something that's transformational. That's my hope. But my main focus in the near term is to start to get more attention to the name because I think we have a really compelling story. I think we've executed really well. And it's that proverb that says, if a tree falls in a forest, does anyone hear it? Clearly not today, but they will.

做一些具有變革性的事情。這就是我的希望。但我近期的主要關注點是開始更多地關注這個名字，因為我認為我們有一個非常引人注目的故事。我認為我們執行得非常好。這就是那句諺語所說的，如果森林裡有一棵樹倒下，有人聽到嗎？顯然不是今天，但他們會的。

Okay. That's helpful. And then last one from me. What's the current timing expectation for the color of bankruptcy resolution. And do I have it correct, if the lease is rejected, you get the asset back and mechanic's lien comes to you, but if the buyer affirms, it's their lease obligation.

好的。這很有幫助。然後是我的最後一張。目前對破產解決方案顏色的時間預期是什麼？我說得對嗎？如果租賃被拒絕，您將收回資產，機械師的留置權歸您所有，但如果買方確認，這是他們的租賃義務。

So you are correcting the mechanic that if they reject the lease, we're stuck holding a bag. We've known this for a while. We're well on that. We are still in discussions with Kalera. So I couldn't probability await the likelihood of rejection. Our property is a little bit unique than some of the other ones. They've already rejected some assets, if you'll follow the proceeds.

所以你要糾正機械師，如果他們拒絕租約，我們就只能束手無策了。我們已經知道這一點有一段時間了。我們在這方面做得很好。我們仍在與卡萊拉進行討論。所以我不能等待被拒絕的可能性。我們的酒店比其他一些酒店有點獨特。他們已經拒絕了一些資產，如果你願意追蹤收益的話。

They have extended it, I think, until October, but as I understand the bankruptcy proceedings go, they have the right to continue to punt on the assumption of their sale because they work through all this with all of their landlords. So we've underwritten and we've looked at it. We're pretty eyes wide open about what we may need to do. We've already also looked at alternatives in the event that they -- if it doesn't work out with them.

我認為他們已經將期限延長到十月，但據我了解破產程序的進展，他們有權繼續押注於出售的假設，因為他們與所有房東一起解決了這一切。所以我們已經承保並研究了它。我們對可能需要做的事情睜大了眼睛。我們也已經研究了替代方案，以防萬一它們不起作用。

Interestingly enough, early this year, Minnesota passed marijuana. We are one of the only industrial properties in the urban center that has its own aquifer. It's designed for vertical growing. So we've had some interest from that already, some other vertical growers.

有趣的是，今年年初，明尼蘇達州通過了大麻。我們是市中心唯一擁有自己含水層的工業地產之一。它是專為垂直生長而設計。所以我們已經對其他一些垂直種植者產生了一些興趣。

So we've been looking at the market, I think even if we have, let's be, growing up here, if we have to pay the liens, we'll work to try to reduce the face value of those liens. But we think the property and the opportunity for a lease is still in excess of that lien value and our purchase price.

因此，我們一直在關注市場，我認為即使我們在這裡長大，如果我們必須支付留置權，我們也會努力降低這些留置權的面值。但我們認為該財產和租賃機會仍然超過留置權價值和我們的購買價格。

Okay. And I guess one question that comes out from that is if it winds up being the highest and best use for this, is something like cannabis, is that something that you hold or given the legality and the REIT restructure, that's something that you sell either to the user or to somebody else to own from that --

好的。我想由此產生的一個問題是，如果它最終成為最高和最好的用途，就像大麻一樣，是你持有或考慮到合法性和房地產投資信託基金重組的東西，你可以出售它給用戶或其他人擁有——

Great question, I think it depends on the -- so we have food production. This is, I wouldn't call it food, but it's similar design. So we already have food production as a category and are things that were not opposed to owning. Do I want to be -- I don't want to infringe on New Lake or the other fine cannabis REITs out there. If they want to take it off, right? I don't know. I think it depends on the tenant, depends on the lease, depends on what we have.

很好的問題，我認為這取決於——所以我們有糧食生產。這是，我不會稱之為食物，但它是類似的設計。因此，我們已經將糧食生產作為一個類別，並且並不反對擁有。我是否想——我不想侵犯 New Lake 或其他優質大麻房地產投資信託基金。如果他們想把它脫下來，對嗎？我不知道。我認為這取決於租戶、取決於租約、取決於我們擁有什麼。

I would say, that would be a byproduct of what's happened to Kalera and would not be seeking cannabis facilities on a go-forward basis at all. But if it happens to be one, we'll see but maybe it becomes a tactical non-core, I don't know. We'll see.

我想說，這將是卡萊拉發生的事情的副產品，並且根本不會在前進的基礎上尋求大麻設施。但如果它碰巧是一個，我們會看到，但也許它會成為戰術非核心，我不知道。我們拭目以待。

Okay. That's helpful. Thanks. and have a good day.

好的。這很有幫助。謝謝。祝您有美好的一天。

Yeah. Thank you.

是的。謝謝。

(Operator Instructions) Barry Oxford, Colliers.

（操作員說明）Barry Oxford，Colliers。

Great. Thanks, guys. Aaron, when you talk about transformational, what might that look like? Would it come in a form of a decently sized joint venture partner? If you could wrap some color behind those comments.

偉大的。多謝你們。亞倫，當你談論改變時，那會是什麼樣子？它會以適當規模的合資夥伴的形式出現嗎？如果你能在這些評論後面加上一些顏色的話。

Sure. If I was going to make it write a letter to Santa Claus, I think it would be -- the ideal world is, I take down a larger portfolio of industrial manufacturing or predominantly industrial manufacturing assets. And I do that in conjunction with a strategic, meaning that maybe they come in with some of the cap stack and gives them some optionality. Could it be structured as a JV? Sure. Could it be structured as a direct investment? Sure.

當然。如果我要讓它寫一封信給聖誕老人，我認為理想的世界是，我拿下更大的工業製造投資組合或主要是工業製造資產。我這樣做是與策略結合起來的，這意味著也許他們會帶來一些上限並給他們一些選擇權。可以建構為合資企業嗎？當然。可以建構為直接投資嗎？當然。

I think it's really about figuring out a solution that creates win-win for all the parties. I think that's the ideal for me. And I will be candid. There are portfolios out there that fit that criteria. Doesn't mean we're going to do one, doesn't mean we're even talking about it, but I know where they're at, and I know that. I've done a lot of homework, and I like them.

我認為這實際上是為了找到一個為各方創造雙贏的解決方案。我認為這對我來說是理想的。我會坦白說。有符合該標準的投資組合。並不意味著我們要做一個，也不意味著我們正在談論它，但我知道他們在哪裡，我知道這一點。我做了很多作業，我很喜歡它們。

So a lot of it like it comes down to, as Rob asked, where are we going to buy? Buying [isn't] really going to be now a function of equity. At some point in the future, we'll need to raise more equity. I've waited this long because I don't want to be dilutive. And I think I've done a good job of being patient. So we are patient in that regard. And now telling the story, if I can double my trading volume, that's probably going to increase the share price materially on an average basis, and that makes all this other stuff more feasible.

所以很多事情都歸結為，正如羅布所問的，我們要去哪裡買？現在購買實際上不再是權益的函數。在未來的某個時候，我們需要籌集更多的股權。我等了這麼久，因為我不想被稀釋。我認為我在保持耐心方面做得很好。所以我們在這方面是有耐心的。現在講這個故事，如果我可以將交易量增加一倍，平均而言，股價可能會大幅上漲，這使得所有其他事情變得更加可行。

Got it. No, that makes sense. When you think about using OP Units going forward, are there other buyers out there that would conceivably do it at a higher price without you offering a higher price?

知道了。不，這是有道理的。當您考慮未來使用 OP 單位時，是否有其他買家可以在您不提供更高價格的情況下以更高的價格購買？

So the two we've done are $25 and $18. So both accretive. I would say that how I look at OP Units, I take them very seriously because they become our partner. I mean they are making an equity investment. And we're pretty straight down the road in terms of structuring. We don't have -- if someone wants a lot of crazy bells and whistles, then go somewhere else. I'm not going to give it to you.

所以我們做的兩個是 25 美元和 18 美元。所以兩者都是累加的。我想說的是，我非常重視 OP 單位，因為他們成為了我們的合作夥伴。我的意思是他們正在進行股權投資。就結構而言，我們正在走上正軌。我們沒有——如果有人想要很多瘋狂的花哨的東西，那就去別的地方。我不會把它給你。

We treat that as being pari-passu with the Class C common. But that said, there's a little slightly different stats because we don't have that many Class C OP Unit holders now. So look, if that happens, I'm always open to it, but it's never my first tool.

我們將其視為與 C 類普通股同等。但話雖如此，統計數據略有不同，因為我們現在沒有那麼多 C 級 OP 單元持有者。所以看，如果發生這種情況，我總是願意接受它，但這從來不是我的第一個工具。

I mean, all things being equal, I'd rather have float in that equity, right? So Class C OP Unit don't create any float. So it's a great way to acquire, but it doesn't solve my liquidity issue.

我的意思是，在所有條件相同的情況下，我寧願擁有該股本的浮動，對嗎？所以 C 類 OP 單元不會創建任何浮動。所以這是一個很好的收購方式，但它並不能解決我的流動性問題。

Right. No, I got it. That makes sense. And then I guess just one question for Ray. On the straight-lining, is that a good run rate right now looking at the 2Q number? Or should we be thinking about straight-line differently?

正確的。不，我明白了。這就說得通了。然後我想只有一個問題要問雷。從直線上看，目前第二季的運行率是否良好？或者我們應該以不同的方式思考直線？

It really depends on what we do going forward in terms of acquisitions. We're signing 20-year leases plus and that increases the amount of straight-line rent. So if things didn't change, if we didn't acquire anything, that would probably be a reasonable run rate. But assuming we buy more property, that number will increase.

這實際上取決於我們未來在收購方面所做的事情。我們簽訂了 20 年以上的租約，這會增加直線租金。因此，如果情況沒有改變，如果我們沒有獲得任何東西，這可能是合理的運行率。但假設我們購買更多房產，這個數字還會增加。

But the flip side of it is, revenue is going up. So in terms of AFFO, they watch it out. The revenue has gone up, and then you're deducting straight-line rent.

但另一方面是，收入正在增加。所以對於AFFO來說，他們要小心。收入增加了，然後你就可以扣除直線租金。

Right. Okay. Appreciate the color, guys. Thanks for the time.

正確的。好的。欣賞一下這個顏色，夥計們。謝謝你的時間。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Halfacre for any final comment.

謝謝。女士們先生們，我們的問答環節到此結束。我將把發言權交還給 Halfacre 先生以徵求最終意見。

I wish to thank everyone for joining the call. I want to thank David Sobelman and the GIPR team. What we did there was a unique transaction. You could have easily just sold it off for cash. I think our goal was to do something that helped the community. Being a tiny REIT and working with another tiny REIT, that's what we are, let's be candid, we're small, and most people aren't paying attention.

我要感謝大家加入這通通話。我要感謝 David Sobelman 和 GIPR 團隊。我們在那裡所做的是一次獨特的交易。您可以輕鬆地把它賣掉換取現金。我認為我們的目標是做一些幫助社區的事情。作為一個小型房地產投資信託基金並與另一個小型房地產投資信託基金合作，這就是我們的本質，坦白說，我們很小，而且大多數人都沒有註意到。

To create a structure that was a win-win, I think is unique in our space. And we did it ourselves, which shows that we have the skills. I mean so they've now more than doubled our asset size in terms of property counts. And they've now achieved $1 billion in gross assets. They bought -- what we sold fits their profile perfectly. And so they were good quality assets that we didn't want because we had already signaled we were going to move on, so we've given it to them. And so we're pleased that we're able to do that.

我認為創建一個雙贏的結構在我們的領域是獨一無二的。而我們自己做到了，這表示我們有能力。我的意思是，就財產數量而言，他們現在已經將我們的資產規模增加了一倍以上。他們現在的總資產已達 10 億美元。他們購買的東西——我們出售的東西完全符合他們的形象。因此，它們是我們不想要的優質資產，因為我們已經表示我們將繼續前進，所以我們把它給了他們。因此，我們很高興能夠做到這一點。

It wasn't the easiest transaction to do, but we got it done. And I think we showed that we can do those types of transactions on an even bigger scale, and our team has the capability to do that in-house, which means we save tons of money when it comes to those types of expenses.

這不是最容易做的交易，但我們還是完成了。我認為我們表明我們可以更大規模地進行這些類型的交易，並且我們的團隊有能力在內部完成這些交易，這意味著我們在這些類型的費用方面節省了大量的資金。

So I'm excited about what that shows that we did and what we can do. I hope most people pay attention to us because optionality is in the name. We trade well below our GAAP book value. Any acquisition that we do can add materially to the top line because of our size. We're really interesting from both a growth and value perspective for those who invest in small-cap REITs.

因此，我對這表明我們所做的事情以及我們能夠做的事情感到興奮。我希望大多數人關注我們，因為選擇性就在名字裡。我們的交易價格遠低於公認會計準則帳面價值。由於我們的規模，我們所做的任何收購都可以大大增加收入。對於那些投資小型房地產投資信託基金的人來說，從成長和價值的角度來看，我們真的很有趣。

Liquidity is the issue. If there are investors out there who -- big investors who have blocks who have interest, let us know, let our banks know. But this is the next phase, and I'm excited to see what it brings. And I look forward to talking to you at the next quarter call. Bye.

流動性是問題。如果有投資者——擁有區塊的大投資者有興趣，請讓我們知道，讓我們的銀行知道。但這是下一階段，我很高興看到它會帶來什麼。我期待在下個季度的電話會議上與您交談。再見。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。