Mach Natural Resources LP (MNR) 2021 Q1 法說會逐字稿

Greetings, and welcome to Equity Commonwealth First Quarter 2021 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Equity Commonwealth 2021 年第一季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Sarah Byrnes, Senior Vice President, Investor Relations and Capital Markets. Thank you. You may begin.

現在我想將會議交給主持人、投資者關係和資本市場高級副總裁莎拉·伯恩斯 (Sarah Byrnes)。謝謝。你可以開始了。

Thanks, Rob. Good morning, and thank you for joining us today. We will be discussing the recently announced merger between Equity Commonwealth and Monmouth Real Estate Investment Corporation. On the call today from Equity Commonwealth are Sam Zell, our Chairman; David Helfand, President and CEO; David Weinberg, COO; and Bill Griffiths, CFO.

謝謝，羅布。早安，感謝您今天加入我們。我們將討論最近宣布的 Equity Commonwealth 和 Monmouth Real Estate Investment Corporation 之間的合併。今天，我們的主席 Sam Zell 參加了 Equity Commonwealth 的電話會議；大衛·赫爾凡德，總裁兼執行長；大衛‧溫伯格，營運長；和財務長比爾‧格里菲斯 (Bill Griffiths)。

Please be advised that certain matters discussed during this conference call, including relating to the pending merger, may constitute forward-looking statements within the meaning of federal securities laws. We refer you to the section titled Forward-Looking Statements in the press releases issued yesterday as well as the section titled Risk Factors in our annual report on Form 10-K and quarterly reports on Form 10-Q for subsequent quarters for a discussion of factors that could cause actual results to materially differ from any forward-looking statements, including any statements regarding the overall impact of COVID-19. The company assumes no obligation to update or supplement any forward-looking statements made today. We will make important filings with the SEC in connection with the pending merger. Today's call is not intended to be and is not a substitute for those filings. We urge you to read those materials carefully when they become available before making any voting or investment decisions. We also post important information on our website, including information that may be material.

請注意，本次電話會議期間討論的某些事項（包括與待定合併相關的事項）可能構成聯邦證券法含義內的前瞻性陳述。我們建議您參閱昨天發布的新聞稿中標題為“前瞻性陳述”的部分，以及我們 10-K 表格年度報告和後續季度 10-Q 表格季度報告中標題為“風險因素”的部分，以討論因素這可能導致實際結果與任何前瞻性陳述（包括有關COVID-19 整體影響的任何陳述）有重大差異。該公司不承擔更新或補充今天所做的任何前瞻性陳述的義務。我們將向美國證券交易委員會提交與待決合併相關的重要文件。今天的電話會議無意也不能取代這些文件。我們強烈建議您在做出任何投票或投資決定之前仔細閱讀這些資料。我們也在我們的網站上發布重要訊息，包括可能重要的訊息。

The portion of today's remarks on our quarterly earnings also include certain non-GAAP financial measures. Please refer to yesterday's press release and supplemental containing our results for a reconciliation of these non-GAAP measures.

今天關於我們季度收益的評論部分還包括某些非公認會計準則財務指標。請參閱昨天的新聞稿和補充資料，其中包含我們對這些非公認會計原則措施的調節結果。

With that, I will turn the call over to Sam Zell.

這樣，我會將電話轉給 Sam Zell。

Good morning, everybody. Thank you for joining us. We are thrilled to announce the signing of a definitive merger agreement to acquire Monmouth Real Estate Investment Corporation in an all-stock, tax-free transaction.

大家早安。感謝您加入我們。我們很高興地宣布簽署最終合併協議，以全股票、免稅交易收購 Monmouth Real Estate Investment Corporation。

Those of you who have followed EQC for the past 7 years know that we have evaluated a broad range of sectors and businesses. We have pursued contrarian opportunities as well as searched for differentiated ways to enter more favored sector. Our perspective after reviewing a significant number of potential deals is that the current environment is mispricing risk and therefore what otherwise be opportunistic scenarios are priced as though the opportunity was understood in advance.

過去 7 年關注 EQC 的人都知道，我們評估了廣泛的行業和業務。我們追求逆勢機會，並尋找差異化的方式進入更受青睞的產業。在審查了大量潛在交易後，我們的觀點是，當前環境對風險進行了錯誤定價，因此機會主義情景的定價就好像提前了解了機會一樣。

In response, we have focused on sectors with strong fundamental tailwinds and businesses with high-quality cash flow from creditworthy customers. Obviously, the industrial sector meets that test, and the Monmouth portfolio, in particular, reflects that opportunity. Moreover, using EQ stock -- EQC stock was a very important part of this transaction because it meant that subsequent to the merger, we would have a very powerful company with an enormous amount of dry powder, able to take advantage of what is, we believe, for the next 4 or 5 years maybe the #1 growth area in real estate. So we're very excited about the process, and we believe that we can convert Equity Commonwealth into the kind of successful public companies that we've previously sponsored in terms of EQR and ELS. Our culture has historically reflected open communication, rigorous risk management and shared commitment to superior performance.

對此，我們將重點放在基本面強勁的行業和來自信譽良好的客戶的優質現金流的業務。顯然，工業部門滿足了這項考驗，而蒙茅斯的投資組合尤其反映了這個機會。此外，使用EQ股票——EQC股票是這筆交易的一個非常重要的部分，因為這意味著合併後，我們將擁有一家非常強大的公司，擁有大量的乾粉，能夠利用我們現有的優勢。我相信，未來4 到5 年，房地產可能是第一大成長領域。因此，我們對這個過程感到非常興奮，我們相信我們可以將 Equity Commonwealth 轉變為我們之前在 EQR 和 ELS 方面贊助的那種成功的上市公司。我們的文化歷來體現了開放的溝通、嚴格的風險管理和對卓越績效的共同承諾。

Before I turn it over to David Helfand, I also want to acknowledge Gene Landy and his team for their efforts the past 53 years. Guys, we'll take it from here.

在將其交給 David Helfand 之前，我還要感謝 Gene Landy 和他的團隊在過去 53 年中所做的努力。夥計們，我們將從這裡開始。

Thanks, Sam. For EQC, the industrial business and Monmouth's portfolio are an ideal fit. The industrial real estate sector has been propelled by dramatic growth in e-commerce over the past decade and is accelerated as a result of the pandemic. Demand for quality, last-mile distribution facilities is robust. Monmouth's modern, single-tenant, net lease portfolio offers outstanding credit quality and long-dated leases that provide stable cash flow. Going forward, we expect EQC's earnings to be driven by the strong fundamentals of the industrial sector and the growth of e-commerce.

謝謝，山姆。對於 EQC 來說，工業業務和 Monmouth 的產品組合是理想的選擇。過去十年，工業房地產行業受到電子商務急劇增長的推動，並因疫情而加速成長。對優質最後一哩配送設施的需求強勁。 Monmouth 的現代單一租戶淨租賃投資組合提供卓越的信用品質和提供穩定現金流的長期租賃。展望未來，我們預期 EQC 的獲利將受到工業領域強勁基本面和電子商務成長的推動。

With respect to the deal, we're acquiring Monmouth in an all-stock transaction valued at $3.4 billion, including the assumption of debt. We expect to repay Monmouth's $550 million of Series C preferred stock at closing. The combined company is expected to have a pro forma equity market capitalization of $5.5 billion. Monmouth shareholders will receive 0.67 shares of Equity Commonwealth for each share of common stock in Monmouth. Based on our closing price yesterday of $28.95, this represents $19.40 for Monmouth share. In addition, Monmouth's next quarterly dividend of $0.18 will be declared in July and paid in September. Taking the dividend into account, the total consideration to be received by Monmouth shareholders is $19.58 per share based on yesterday's closing price.

關於這筆交易，我們將以價值 34 億美元的全股票交易收購 Monmouth，其中包括承擔債務。我們預計在收盤時償還 Monmouth 的 5.5 億美元 C 系列優先股。預計合併後公司的股票市值將達到 55 億美元。 Monmouth 股東每股 Monmouth 普通股將獲得 0.67 股 Equity Commonwealth 股票。根據我們昨天 28.95 美元的收盤價，這相當於 Monmouth 股票的 19.40 美元。此外，Monmouth 的下一季股息為 0.18 美元，將於 7 月宣布並於 9 月支付。考慮到股息，根據昨天的收盤價，Monmouth股東將收到的總對價為每股19.58美元。

With our demonstrated ability to execute, significant cash and balance sheet capacity, EQC is uniquely positioned to grow from this strong foundation. With that, I'll turn the call over to David Weinberg.

憑藉我們所展示的執行能力、大量現金和資產負債表能力，EQC 處於獨特的地位，可以在這個堅實的基礎上發展。這樣，我會將電話轉給大衛溫伯格。

Thank you, David, and good morning, everyone. Monmouth owns a 99.7% leased, 120-property portfolio of single-tenant net leased industrial buildings that totals 24.5 million square feet. It is located across 31 states with a focus on the Eastern United States. The average remaining lease term is 7.4 years, and 83% of the rent is from investment-grade tenants. Most of the properties were recently built with an average age of 10 years. Over 80% of the properties have clear heights of 24 feet or higher. The average coverage ratio was 21% with many properties having extensive parking areas for both trucks and employees and providing future expansion opportunities. We believe these types of buildings best serve today's distribution tenants and are well positioned to capture future demand from the growth in e-commerce.

謝謝大衛，大家早安。 Monmouth 擁有 99.7% 的租賃率，擁有 120 處單一租戶淨租賃工業建築業組合，總面積達 2,450 萬平方英尺。它遍布 31 個州，重點是美國東部。平均剩餘租期為7.4年，83%的租金來自投資等級租戶。大部分房產都是最近建成的，平均年齡為 10 年。超過 80% 的房產淨高為 24 英尺或更高。平均覆蓋率為 21%，許多物業為卡車和員工提供寬敞的停車位，並為未來的擴張提供了機會。我們相信，這些類型的建築最適合當今的分銷租戶，並且能夠很好地滿足電子商務成長的未來需求。

Monmouth has strong relationships with numerous investment-grade tenants, in particular, FedEx, who leases 63 properties representing 55% of Monmouth's rent. Many of these leases have flat rents, which limits growth. We took this into account in pricing the deal. The NOI yield on the real estate is 4.7% or 4.6% including transaction costs. As I described, this is a newer portfolio with long-dated leases. Accordingly, these properties should have below average capital requirements and will be a smaller spread between the NOI and cash yields. To say it differently, compared to other portfolios of light quality and credit, when accounting for the difference in lease roll and capital, we believe this deal's average 8- to 10-year cash yield is similar to higher-growth deals priced in the low to mid-4 cap rates.

Monmouth 與眾多投資等級租戶有著密切的關係，特別是聯邦快遞 (FedEx)，該公司租賃了 63 處房產，佔 Monmouth 租金的 55%。其中許多租約的租金都是固定的，這限制了成長。我們在定價交易時考慮到了這一點。包括交易成本在內，房地產的 NOI 收益率為 4.7% 或 4.6%。正如我所描述的，這是一個具有長期租賃的較新的投資組合。因此，這些房產的資本要求應低於平均水平，且 NOI 和現金收益率之間的利差較小。換句話說，與其他輕質量和信用的投資組合相比，在考慮租賃期限和資本差異時，我們認為該交易的平均 8 至 10 年現金收益率與定價較低的高增長交易相似。至4上限利率中。

Finally, I would like to reiterate Sam's comment that this deal is the foundation from which we intend to build a first-class industrial business. This portfolio of high-quality real estate properties with long-term leases to investment-grade tenants will generate stable cash flows. Combined with our balance sheet, we look forward to growing the platform and creating long-term value for shareholders.

最後，我想重申 Sam 的評論，即這筆交易是我們打算建立一流工業企業的基礎。這種向投資等級租戶長期租賃的優質房地產投資組合將產生穩定的現金流。結合我們的資產負債表，我們期待發展該平台並為股東創造長期價值。

With that, we will now open it up to questions.

至此，我們現在將開放提問。

(Operator Instructions) Our first question comes from Manny Korchman with Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 Manny Korchman。

It's Michael Bilerman here with Manny. Sam and David, thank you for the opening comments. I want to know sort of when you step back, I mean, it sounds like you have and as we've talked about for years evaluated a lot of different opportunities. I guess coming out and seeing a company buy using their currency to buy another REIT that shareholders could have had access to in a sector where everybody and the other is tripping over each other to deploy capital, not necessarily the type of transaction, I think, the market was anticipating, given how much time they'd been spent talking about trying to find something opportunistic, value creating, maybe somewhere that someone could leverage the cash on your balance sheet, the management that you have involved in the different property sectors. And so how does this sort of line up with the ability to maybe just do nothing and return capital to shareholders? I guess why do this versus the third alternative, which is do nothing and give, call it, a success on taking out Commonwealth and driving a lot of value from where you originally purchased it?

這是邁克爾·比勒曼和曼尼。山姆和大衛，謝謝你們的開場評論。我想知道你什麼時候退後一步，我的意思是，聽起來你已經退一步了，正如我們多年來談論的那樣，評估了很多不同的機會。我想，看到一家公司用自己的貨幣購買另一家房地產投資信託基金，股東可以在這個行業中獲得股東可以使用的房地產投資信託基金，在這個行業中，每個人都互相絆倒來部署資本，而不一定是交易類型，我認為，市場正在預期，考慮到他們花了多少時間談論試圖找到機會主義的、創造價值的東西，也許有人可以利用你資產負債表上的現金，你參與不同房地產領域的管理。那麼，這種能力與什麼也不做、將資本回饋給股東的能力是如何一致的呢？我想為什麼要這樣做，而不是第三種選擇，即什麼也不做，稱之為成功，從你最初購買它的地方獲得了巨大的價值？

This is Sam. I'll try and give you my perspective on that. I think we obviously took into consideration all of the factors that you laid out. We felt that the opportunity to acquire this portfolio and match it up with the cash that we have available to us and frankly a pretty superior real estate-related management team, we really felt that with the base that this portfolio provided, we would have the flexibility on a transaction-by-transaction basis to add significant value going forward.

這是薩姆。我會盡力向您提供我對此的看法。我認為我們顯然考慮了您列出的所有因素。我們認為，有機會獲得這個投資組合，並將其與我們可用的現金相匹配，坦白說，我們有一個非常優秀的房地產相關管理團隊，我們真的認為，憑藉這個投資組合提供的基礎，我們將擁有在逐筆交易的基礎上提供靈活性，以增加未來的重大價值。

I assure you we've looked at all kinds of different opportunities, including the disposition of the cash balance, and calling it a day on EQC. And as a significant shareholder, and I looked at those 2 alternatives, and I said I'd much rather have a stable base and an opportunity to take advantage of the skill set that's evolved and to find myself a distributor or a recipient of cash and then attempting to find another area for an investment.

我向您保證，我們已經考慮了各種不同的機會，包括現金餘額的處置，以及 EQC 的收尾工作。作為重要股東，我研究了這兩種選擇，我說我更願意有一個穩定的基礎和一個機會來利用不斷發展的技能，並為自己找到一個分銷商或現金接收者然後嘗試尋找另一個投資領域。

I believe that, yes, the industrial space is very crowded at the moment, but I don't think it is crowded with too many people with $5 billion of buying capability and cash on the balance sheet. And it's going to be up to us to find ways to take advantage of that set of circumstance.

我相信，是的，目前工業領域非常擁擠，但我不認為它擠滿了太多擁有 50 億美元購買能力和資產負債表上現金的人。我們需要找到利用這種情況的方法。

And then when you talk about some of the sectors that were contrary in place, and I would suspect lodging, retail, office, maybe even senior housing, everything has been reopening. You talked, Sam, about people mispricing risk. I think in many ways, given what you know about those sectors, the fact that you're not doubling down in those potentially or reentering those sectors, can you talk a little bit about the framework of not buying in those? Because one would argue if Sam Zell came around and put a stake in the ground on retail or returning into office, that may have more meaningful than being arguably a little bit late to the industrial party, at least in the U.S., from a platform perspective.

然後，當你談論一些相反的行業時，我懷疑住宿、零售、辦公，甚至老年住房，一切都已經重新開放。山姆，你談到了人們對風險的錯誤定價。我認為在很多方面，考慮到您對這些行業的了解，事實上您沒有在這些潛在行業中加倍投資或重新進入這些行業，您能否談談不購買這些行業的框架？因為有人會說，如果薩姆·澤爾（Sam Zell）回心轉意，在零售業或重返辦公室投入股份，那麼從平台的角度來看，這可能比對工業黨來說有點晚了更有意義，至少在美國是這樣。 。

Yes. I don't think we're too late. I think that the industrial sector has a very significant amount of room yet to grow. As to the other areas of involvement, I've made reference, both publicly and privately, to the effect that I thought that real estate was a falling knife. Last I checked, the knife was still falling. I may think I'm smart, and I may think I'm surrounded by a very talented team, but I don't know that they're very good at catching knives nor do I know anybody who is.

是的。我認為我們還不算太晚。我認為工業部門還有很大的成長空間。至於其他涉及的領域，我在公開和私下都提到過，大意是我認為房地產是一把落刀。最後我檢查了一下，刀子仍在掉落。我可能認為我很聰明，我可能認為我周圍有一支非常有才華的團隊，但我不知道他們非常擅長抓刀，我也不認識任何人。

Is that retail that you're referring to?

你說的是零售業嗎？

Yes. Retail. So as far as I was concerned, there obviously is going to be an opportunity in retail. I just don't think it's there yet.

是的。零售。因此，就我而言，零售業顯然存在著機會。我只是認為它還不存在。

As far as the hotel space is concerned, again, I don't think the hotel business is going out of business. But I think if I look at the pricing of hotels and the pricing of hotel REITs, I can't relate that pricing to the way I see the opportunity. So that kind of eliminated that area.

就酒店空間而言，我不認為酒店業務會倒閉。但我認為，如果我看看酒店的定價和酒店房地產投資信託基金的定價，我無法將該定價與我看待機會的方式聯繫起來。這樣就消除了該區域。

As far as office space is concerned, I've also said frequently that this is a very interesting or unique scenario because the office space market was oversupplied before the pandemic. The pandemic has certainly not generated any belief on my part that demand is increasing. And yes, I think the oversupply is going to impact that area very significantly over the next few years. Plus, I think that the CapEx requirements in the office market are just another way of reducing price. And we felt that at this particular point and at this cost of entry, that area didn't make sense.

就辦公空間而言，我也常說過，這是一個非常有趣或獨特的場景，因為疫情之前辦公空間市場供應過剩。這場大流行當然沒有讓我相信需求正在增加。是的，我認為供應過剩將在未來幾年對該地區產生非常顯著的影響。另外，我認為辦公市場的資本支出要求只是降低價格的另一種方式。我們認為，在這個特定的時刻，以這種進入成本，該領域沒有意義。

I assure you that we've considered all of those possibilities, including the distribution of the capital, and we believe this is the most opportune result we had come up with.

我向您保證，我們已經考慮了所有這些可能性，包括資本的分配，我們相信這是我們想到的最合適的結果。

Our next question comes from the line of John Kim with BMO Capital Markets.

我們的下一個問題來自蒙特利爾銀行資本市場部的約翰金 (John Kim)。

I just wanted to follow up on the commentary that you're seeing cap rates in the mid- to low-4 cap range for competing product. Was that for single-tenant net lease industrial assets? And also, are you seeing portfolio premiums in the market today for industrial?

我只是想跟進一下評論，即您看到競爭產品的上限利率處於中低 4 上限範圍內。這是單一租戶淨租賃工業資產嗎？另外，您是否看到現今市場上的工業投資組合溢價？

I'd say yes and yes. So we've been tracking and looking at industrial now for a couple of years, and there are many comps around the country where you're seeing single-tenant net leased assets trade in the low to mid-4 caps. Obviously, it varies by credit and market. And given the amount of capital chasing industrial, there is a sweet spot where, depending on the portfolio size, it's no secret that, that is trading at a premium. In fact, there are "aggregators" out there who are trying to consolidate portfolios so that they can take advantage of the ARB and sell it as such.

我會說是的，是的。因此，我們幾年來一直在追蹤和關注工業行業，全國各地有許多公司，您會看到單租戶淨租賃資產交易處於低至中 4 上限。顯然，它因信用和市場而異。考慮到追逐工業的資本數量，根據投資組合規模，存在一個最佳點，即溢價交易，這已不是什麼秘密。事實上，有一些「聚合者」正在試圖整合投資組合，以便他們可以利用 ARB 並將其出售。

I'm not sure if Mike Landy is on the phone or available for questions, but why was this offer done in all-stock? And why was Monmouth willing to accept an all-stock offer rather than some cash component given there has been a competing bid that is all-cash?

我不確定邁克蘭迪是否在打電話或可以回答問題，但為什麼此優惠是全庫存的？鑑於存在全現金的競爭性報價，為什麼蒙茅斯願意接受全股票報價而不是部分現金？

Yes. Mike is not on the call, and you'll have to direct that to Mike.

是的。麥克不在通話中，您必須將其轉給麥克。

Okay. Maybe you can comment that from the EQC point of view then? Like why not offer Monmouth shareholders some kind of cash component?

好的。也許您可以從EQC的角度來評論一下？例如為什麼不向 Monmouth 股東提供某種現金成分呢？

I think to repeat what I said before, a very important part of this transaction was the creation of a significant and powerful industrial company. There are lots of industrial companies. There's a couple that are very large and very powerful, and then the size drops off significantly. We felt that the opportunity to create that kind of an entity was going to translate into better results going forward and provide our investors with a much better option than just an all-cash deal.

我想重複我之前說過的話，這次交易的一個非常重要的部分是創建了一家重要而強大的工業公司。工業企業眾多。有幾個非常大且非常強大，然後尺寸顯著下降。我們認為，創建此類實體的機會將轉化為未來更好的業績，並為我們的投資者提供比全現金交易更好的選擇。

Our next question comes from Daniel Ismail with Green Street Advisors.

我們的下一個問題來自 Green Street Advisors 的 Daniel Ismail。

Great. Can you speak a bit more to the long-term goals of this new combined entity in terms of new acquisitions, geographic concentrations, development opportunities, et cetera?

偉大的。您能否多談談這個新合併實體在新收購、地理集中、發展機會等方面的長期目標？

Yes. Thanks, Dan. I think looking forward, we love the space broadly. It will depend on pricing in terms of what markets we're going to grow in initially. But as Sam said, the long-term play here is to build a fully integrated, value-add industrial business capabilities across the board. And where exactly we focus will be a function of where the opportunity is. There is lots of industrial and lots of places that will complement the existing Monmouth portfolio, and our capacity on the balance sheet will allow us to access those opportunities.

是的。謝謝，丹。我認為展望未來，我們廣泛地熱愛這個領域。這將取決於我們最初要發展的市場的定價。但正如薩姆所說，這裡的長期目標是全面建立完全整合的增值工業業務能力。我們到底關注哪裡將取決於機會所在。有許多工業和地方可以補充蒙茅斯現有的投資組合，我們的資產負債表能力將使我們能夠獲得這些機會。

I would add that the existence of our balance sheet, the existence of a very conservative base gives us the ability, going forward, to take more risk and to take on perhaps some more unique situations that we otherwise wouldn't do because they would be too impactful to a company. So from our perspective, what we've done is we've created a vehicle that allows us to cover all the different possibilities, knowing that our underlying base was well protected. And that, therefore, we could do things that on a one-off basis might be too risky or not benefit enough for us.

我想補充一點，我們資產負債表的存在，一個非常保守的基礎的存在，使我們有能力在未來承擔更多風險，並承擔一些更獨特的情況，否則我們不會這樣做，因為它們會對公司影響太大。因此，從我們的角度來看，我們所做的是創造了一種工具，讓我們能夠涵蓋所有不同的可能性，同時知道我們的基礎得到了很好的保護。因此，我們可以一次做一些可能風險太大或對我們來說收益不夠的事情。

So to follow up on that, I guess, with the large concentration to FedEx and this balance sheet, I guess it would be fair to say that potentially this new vehicle would have more value add or development exposure than would have without this -- the financial backing of EQC.

因此，為了跟進這一點，我想，隨著聯邦快遞和這份資產負債表的高度集中，我想可以公平地說，與沒有這一點相比，這款新車可能會具有更多的增值或開發風險－ EQC 的財務支援。

Yes. I think there's very little doubt that we're highly sensitive to the FedEx exposure. When you look at what we're paying for this company against what FedEx debt trades for, we're getting a significant premium for owning the buildings rather than owning the debt. But clearly, our goal, going forward, would be to diversify away from that kind of concentration and also do things that are the opposite of purely net lease scenarios to a highly credited tenant.

是的。我認為毫無疑問我們對聯邦快遞的風險高度敏感。當你看到我們為這家公司支付的費用與聯邦快遞債務的交易價格相比，我們因擁有建築物而不是擁有債務而獲得了可觀的溢價。但顯然，我們未來的目標是實現多元化，擺脫這種集中化，並採取與向信譽良好的租戶純淨租賃方案相反的做法。

Great. And I guess the last one for me. Are you able to disclose the break fee?

偉大的。我想最後一個對我來說是。能透露一下分手費嗎？

I'm sorry?

對不起？

Are you able to disclose the breakup fee, if any, for this potential deal?

您能否透露這筆潛在交易的分手費（如果有）？

No. That's not publicly disclosed.

不，這沒有公開披露。

Our next question comes from Rob Stevenson with Janney Montgomery Scott.

我們的下一個問題來自羅布·史蒂文森和詹尼·蒙哥馬利·斯科特。

EQC hasn't paid a regular dividend quite a while for Monmouth shareholders. How are you thinking about recurring quarterly dividend and any potential timing for that?

EQC 已經有一段時間沒有為 Monmouth 股東定期派發股息了。您如何考慮經常性季度股息以及任何可能的時機？

Obviously, the dividend question is one that the Board will have to answer. But given the cash flow dynamics of this portfolio, we do expect to be commencing a dividend shortly after closing, the amount to be determined.

顯然，股利問題是董事會必須回答的問題。但考慮到該投資組合的現金流動態，我們預計將在交割後不久開始派發股息，具體金額待定。

Okay. And is there a floor on the deal price depending on where EQC trades? In other words, if EQC trades down to $25, then the deal price is $16.75 sort of repricing mechanism?

好的。交易價格是否有下限，取決於 EQC 的交易地點？換句話說，如果 EQC 交易價格跌至 25 美元，那麼交易價格為 16.75 美元，是一種重新定價機制嗎？

There is not.

那沒有。

Okay. And then last one for me -- sorry?

好的。最後一個是我的——抱歉？

I was just saying fixed exchange ratio.

我只是說固定兌換率。

Okay. And then when you're thinking about it, how scalable do you think Monmouth's build-to-suit business is? Or are you basically going to be out there in the market? Are you guys thinking about development as well?

好的。然後，當您思考這個問題時，您認為 Monmouth 的客製化業務的可擴展性如何？或者你基本上會進入市場嗎？你們也在考慮發展嗎？

Yes. I think as Sam said, we're looking at all different ways to add value using Monmouth as the foundation.

是的。我認為正如薩姆所說，我們正在尋找以蒙茅斯為基礎來增加價值的所有不同方法。

And I also think that apropos of some of the questions that were previously asked, I think there are elements of the real estate industry today where you might match up a couple of different things. So just like Google took over a major shopping center in California and turned it into an office park, I think there may be other retail in other parts of the country that very much lend itself toward industrial redevelopment. So we wouldn't be sensitive to or averse to picking on those kinds of responsibilities, particularly with the kind of economic base we have as the point of starting.

我還認為，關於之前提出的一些問題，我認為當今房地產行業的某些元素可能會匹配一些不同的東西。因此，就像谷歌接管了加州的一個大型購物中心並將其變成一個辦公園區一樣，我認為該國其他地區可能還有其他零售業非常適合工業重建。因此，我們不會對承擔此類責任敏感或反對，特別是以我們擁有的經濟基礎為起點。

(Operator Instructions) Our next question comes from Manny Korchman with Citi.

（操作員說明）我們的下一個問題來自花旗銀行的 Manny Korchman。

Now it's Manny. You guys I think a few times on the call have talked about buying this foundation within Monmouth and talking about things like retail conversions, talking about ground-up development, build-to-suits, running an integrated industrial platform. And that's all stuff that Monmouth didn't really do. It was more buying merchant built net lease standing industrial assets, newer ones from others. They didn't develop in-house, and now you're talking about building all that out. So kind of what does the platform provide from that perspective? And then how many people from both organizations are going to stick around as you embark on this journey?

現在是曼尼。我想你們在電話會議上有幾次談到了在蒙茅斯收購這個基金會，並談論了零售轉型、基礎開發、客製化、運行整合工業平台等事情。這些都是蒙茅斯並沒有真正做過的事情。更多的是購買商人建造的淨租賃常備工業資產，以及其他公司的較新資產。它們不是在內部開發的，現在你正在談論將所有這些都建構出來。那麼從這個角度來看，該平台提供了什麼？那麼，當您踏上這趟旅程時，兩個組織中有多少人會留下來？

Yes. Thanks, Manny. That's accurate. Monmouth hasn't in the past done that they've had a specific strategy that executed on. We're going to have a broader strategy.

是的。謝謝，曼尼。這是準確的。蒙茅斯過去從未這樣做過，他們已經制定了具體的策略來執行。我們將制定更廣泛的戰略。

To your question of the team, what we've disclosed is that there's a year transition so that we can smoothly hand off. As we grow, we'd expect to get to know the Monmouth team and determine whether they'll be part of our team going forward. We're hopeful that we can build off their talent. But we have industrial expertise in our shop, experience across our team, and we own 6.5 million feet in Commonwealth. We've owned industrial in the past. So we feel confident in our capability, and we'll sort of take the best of both teams and put them together.

對於你提到的團隊問題，我們透露的是，有一年的過渡期，以便我們能夠順利交接。隨著我們的成長，我們希望了解蒙茅斯團隊並確定他們是否會成為我們團隊的一部分。我們希望能夠發揮他們的才能。但我們的工廠擁有行業專業知識，我們的團隊擁有豐富的經驗，我們在 Commonwealth 擁有 650 萬英尺的土地。我們過去擁有工業。因此，我們對自己的能力充滿信心，我們會充分發揮兩支球隊的優勢，並將他們整合在一起。

And maybe this question doesn't need to be asked, but I'll ask it anyway. But is sort of the search for other opportunities over? Or is there a chance that given the acquisition team still being in place at EQC that you can see that you guys are actually looking beyond this to put the capital to work beyond just single asset or portfolio deals in industrial?

也許這個問題不需要問，但我還是會問。但尋找其他機會是否已經結束了呢？或者，考慮到 EQC 的收購團隊仍然存在，你們是否有可能看到你們實際上正在超越這個目標，將資本投入到工業領域的單一資產或投資組合交易之外？

I think the bottom line is never say never. I don't think that we currently have any specific plans to do anything other than to build out off of the portfolio that Monmouth represents, but I certainly would not preclude any other diversions depending on circumstances.

我認為底線是永遠不要說永遠。我認為，除了建立蒙茅斯所代表的投資組合之外，我們目前沒有任何具體計劃做任何事情，但我當然不會根據具體情況排除任何其他轉移。

And the last one for maybe David Weinberg. Given the FedEx exposure and sort of that single tenant, whether it be risk or opportunities, is that a funding source near term or longer term or some other structure where you unlock some of the FedEx exposure and credit and eliminate that, not just for growth, but through sales or dilution?

最後一張可能是大衛溫伯格的。考慮到聯邦快遞的風險和單一租戶，無論是風險還是機遇，它都是短期或長期的資金來源，或者是其他一些結構，您可以在其中解鎖一些聯邦快遞的風險和信貸並消除它們，而不僅只是為了成長，但是透過銷售還是稀釋？

What was the last phrase, the punchline, not through growth, but through what?

最後一句話是什麼，笑點，不是透過成長，而是透過什麼？

But through sales or through sort of just selling it off rather than growing out of it.

但透過銷售或只是透過出售而不是透過它來發展。

Yes. So look, in the short term, we're going to wrap our arms around this portfolio, figure out where there are opportunities to create value. We're not walking into this deal looking to flip a bunch of assets. Medium term, long term, perhaps, but it's not a question we're trying to ask or answer today.

是的。因此，從短期來看，我們將全力支持這個投資組合，找出有機會創造價值的地方。我們參與這筆交易並不是為了出售大量資產。也許是中期、長期，但這不是我們今天要提出或回答的問題。

What about securitization of those leases?

這些租賃的證券化怎麼樣？

I don't think we plan to do that either. That is another form of exit.

我認為我們也不打算這麼做。這是另一種形式的退出。

Our next question comes from John Kim with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 John Kim。

I just wanted to clarify, the 4.7% cap rate that you quoted, was that net of the securities book and the development assets?

我只是想澄清一下，您引用的 4.7% 上限利率是扣除證券帳簿和開發資產後的淨值嗎？

Yes. So that is a real estate cap rate, and I'll take a moment to just kind of walk through the math, so there's no misunderstanding. If you look at their -- Monmouth's earnings release, March 2021, they reported a GAAP NOI of $38.7 million. If you walk that to a cash NOI and you look at historical, that will be around $38 million. Annualized, that's $152 million. And then they've got those 8 FedEx ground parking expansions in progress, which will be costing them about $31.4 million. Historically, they've earned about a 10% yield on those types of investments. So $3 million plus $152 million is $155 million. That's our numerator, and our denominator is a walk starting with the stock price and making balance sheet adjustments to get to the real estate value.

是的。這就是房地產上限利率，我將花點時間來簡單介紹數學，這樣就不會有誤解。如果你看看 Monmouth 2021 年 3 月發布的收益報告，他們報告的 GAAP NOI 為 3870 萬美元。如果您將其計算為現金 NOI，並查看歷史記錄，則約為 3800 萬美元。按年計算，該數字為 1.52 億美元。此外，他們還正在進行 8 個聯邦快遞地面停車場的擴建，這將花費他們約 3,140 萬美元。從歷史上看，他們在這些類型的投資中獲得了大約 10% 的收益率。所以 300 萬美元加上 1.52 億美元就是 1.55 億美元。這是我們的分子，我們的分母是從股票價格開始並進行資產負債表調整以獲得房地產價值的步行。

Okay. And the nonanswer on the breakup fee, would that be disclosed at some point?

好的。關於分手費的未答复，是否會在某個時候披露？

That will be disclosed later today in an 8-K filing.

這將於今天晚些時候在 8-K 文件中披露。

Our next question comes from Daniel Ismail with Green Street Advisors.

我們的下一個問題來自 Green Street Advisors 的 Daniel Ismail。

Great. On the residual office exposure, are those assets already being marketed? And I'm curious the type of reception those assets are being received.

偉大的。關於剩餘的辦公室風險，這些資產是否已經在銷售？我很好奇這些資產的接收方式。

No. Our office properties are not currently being marketed. We continue to work them, and we'll look for opportunities when it may make sense.

否。我們的辦公物業目前尚未上市。我們將繼續努力，並在有意義的時候尋找機會。

Our next question comes from [Rick Smith] with Smith Capital.

我們的下一個問題來自史密斯資本的[Rick Smith]。

Before I start, I'm going to butter you up, Sam. You're a legend. I followed you my entire career. Look, Blackwells put a statement out, and the statement says the industrial REIT space has materially re-rated since our '18 bid. Had the company engaged with Blackwells and not excluded it from the process, they would have been prepared to potentially increase their all-cash offer. So were they part of the process? And if not, why not?

在開始之前，我要先向你拍馬屁，山姆。你是一個傳奇。我整個職業生涯都在追隨你。看，Blackwells 發表了一份聲明，該聲明稱，自我們 18 年投標以來，工業房地產投資信託基金領域已進行了重大重新評級。如果該公司與 Blackwells 合作並且沒有將其排除在這一過程之外，他們可能會準備提高全現金報價。那麼他們是這個過程的一部分嗎？如果沒有，為什麼不呢？

We can't comment on that. Appreciate the question, but we can't comment on that matter.

我們無法對此發表評論。感謝這個問題，但我們無法對此發表評論。

We have reached the end of the question-and-answer session. At this time, I'd like to turn the call back over to David Helfand for closing comments.

我們的問答環節已經結束。此時，我想將電話轉回給 David Helfand 進行總結評論。

Thank you for your time today and your interest. We look forward to working with you in the future. Thank you.

感謝您今天的寶貴時間和您的興趣。我們期待未來與您合作。謝謝。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，我們感謝您的參與。