Orion Properties Inc (ONL) 2025 Q1 法說會逐字稿

Greetings. Welcome to Orion Properties first-quarter 2025 earnings call. As a reminder, this conference is being recorded.

問候。歡迎參加 Orion Properties 2025 年第一季財報電話會議。提醒一下，本次會議正在錄製中。

I would now like to turn the call over to Paul Hughes, General Counsel for Orion. Thank you. You may begin.

現在我想將電話轉給 Orion 總法律顧問 Paul Hughes。謝謝。你可以開始了。

Thank you, and good morning, everyone. Yesterday, Orion released its results for the quarter ended March 31, 2025, filed its Form 10-Q with the Securities and Exchange Commission and posted its earnings supplement to its website at onlreit.com.

謝謝大家，早安。昨天，Orion 公佈了截至 2025 年 3 月 31 日的季度業績，向美國證券交易委員會提交了 10-Q 表，並將其收益補充資訊發佈在其網站 onlreit.com 上。

During the call today, we will be discussing Orion's guidance estimates for calendar year 2025 and other forward-looking statements, which are based on management's current expectations and are subject to certain risks that could cause actual results to differ materially from our estimates. The risks are discussed in our earnings release as well as in our Form 10-Q and other SEC filings, and Orion undertakes no duty to update any forward-looking statements made during this call.

在今天的電話會議中，我們將討論 Orion 對 2025 日曆年的指導估計和其他前瞻性陳述，這些陳述基於管理層當前的預期，並受某些風險的影響，可能導致實際結果與我們的估計存在重大差異。這些風險已在我們的收益報告以及 10-Q 表和其他 SEC 文件中進行了討論，Orion 不承擔更新本次電話會議中所做的任何前瞻性陳述的義務。

Today, on the call, we will be discussing funds from operations, or FFO, and core funds from operations or core FFO and other non-GAAP financial measures. These non-GAAP financial measures are not a substitute for financial information presented in accordance with GAAP, and Orion's earnings release and supplement include a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measure.

今天，在電話會議上，我們將討論營運資金（FFO）、核心營運資金（核心 FFO）和其他非 GAAP 財務指標。這些非 GAAP 財務指標不能取代依照 GAAP 呈現的財務信息，且 Orion 的收益報告和補充報告包括我們的非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳。

Hosting the call today are Orion's Chief Executive Officer, Paul McDowell; and Chief Financial Officer, Gavin Brandon. And joining us for the Q&A session are Gary Landriau, our Chief Investment Officer; and Chris Day, our Chief Operating Officer.

今天主持電話會議的是 Orion 執行長 Paul McDowell；和財務長 Gavin Brandon。參加問答環節的還有我們的首席投資長 Gary Landriau；以及我們的營運長 Chris Day。

With that, I am now going to turn the call over to Paul McDowell.

現在，我將把電話轉給保羅‧麥克道爾 (Paul McDowell)。

Good morning, everyone, and thank you for joining us on Orion Properties first quarter earnings call. Today, I will highlight the progress we are making executing on our new business strategy and discuss our first quarter performance and operations.

大家早安，感謝您參加 Orion Properties 第一季財報電話會議。今天，我將重點介紹我們執行新業務策略所取得的進展，並討論我們第一季的業績和營運情況。

Following my remarks, Gavin will review our financial results and provide our outlook for the rest of the year. With over 450,000 square feet of leasing completed as of May 6, we are successfully building on last year's strong leasing momentum that saw Orion lease 1.1 million square feet.

在我發言之後，加文將回顧我們的財務表現並對今年剩餘時間做出展望。截至 5 月 6 日，Orion 已完成超過 450,000 平方英尺的租賃，我們成功地延續了去年強勁的租賃勢頭，去年 Orion 租賃了 110 萬平方英尺。

Specifically, the over 450,000 square feet of leasing is a combination of new and renewal transactions with a weighted average lease term of 7.4 years. Included in this total is a 15.7-year lease for 46,000 square feet at our Parsippany, New Jersey property, bringing that formerly vacant building to more than 60% leased to two tenants.

具體而言，超過 450,000 平方英尺的租賃是新租和續租交易的組合，加權平均租賃期限為 7.4 年。其中包括我們位於新澤西州帕西帕尼的 46,000 平方英尺物業的 15.7 年租約，這使得該棟以前空置的建築的 60% 以上租給了兩個租戶。

In addition, we signed a new 10-year lease for 160,000 square feet in Buffalo, New York with Ingram Micro, who will be relocating from our Amhurst, New York property. We are encouraged by the strong leasing activity to start the year as it reflects the slowly improving market tone we started to see last year.

此外，我們還與 Ingram Micro 簽署了一份新的為期 10 年的租約，租用位於紐約州布法羅的 160,000 平方英尺的空間，Ingram Micro 將從我們位於紐約州阿姆赫斯特的廠房搬遷過來。我們對年初強勁的租賃活動感到鼓舞，因為它反映了我們去年開始看到的緩慢改善的市場基調。

We continue to work hard to sustain this momentum. However, we cannot control the impact from the very significant macroeconomic uncertainty that has been injected into the broader markets recently. Given the smaller size of our portfolio, there will be significant variability in leasing spreads quarter-to-quarter and even year-to-year as we lease individual properties.

我們將繼續努力保持這股勢頭。然而，我們無法控制近期注入大盤的非常大的宏觀經濟不確定性所帶來的影響。鑑於我們的投資組合規模較小，當我們租賃單一房產時，租賃利差在各個季度之間甚至每年之間都會有顯著差異。

To that point, initial rent spreads on renewal leases during the first quarter were off about 18%, primarily related to the particular dynamics of the properties renewed in specific markets. To give a more rounded picture, when measured on all leasing activity since the spin, our initial rent spreads are down about 5% and ending rent spreads are up about 7% on average during the same time period.

到目前為止，第一季續租的初始租金差價下降了約 18%，這主要與特定市場中續租物業的特殊動態有關。為了提供更全面的信息，以分拆以來的所有租賃活動來衡量，我們的初始租金利差在同一時期內平均下降了約 5%，而最終租金利差則上漲了約 7%。

Orion's operating property occupancy rate was 74.3% at quarter end. The operating property lease rate was 77.4% and the weighted average lease term was 5.2 years. Although we anticipate tenant retention to remain challenged this year, we expect that our portfolio occupancy will begin to rise after this year as we continue to lease vacant space, sell vacant properties that do not meet our long-term goals and generally work to overcome the significant lease expirations and rollover of the past few years.

截至本季末，Orion 的經營物業入住率為 74.3%。經營性物業租賃率為77.4%，加權平均租賃期為5.2年。儘管我們預計今年租戶保留率仍將面臨挑戰，但我們預計，隨著我們繼續出租空置空間、出售不符合我們長期目標的空置物業，並努力克服過去幾年大量租約到期和展期的問題，我們的投資組合入住率將在今年之後開始上升。

This will be important as we continue to work to reduce property operating costs. After the quarter end, we closed on the sale of three vacant properties totaling 287,000 square feet for a gross sales price of $19.1 million or approximately $66 per square foot. One of those transactions is the sale of 119,000 square foot traditional office property located in Denver, Colorado to a developer who intends to convert the vacant office building into multifamily affordable housing.

這對於我們繼續努力降低物業營運成本至關重要。季度結束後，我們完成了三處空置房產的銷售，總面積為 287,000 平方英尺，總售價為 1,910 萬美元，約合每平方英尺 66 美元。其中一項交易是將位於科羅拉多州丹佛市的 119,000 平方英尺的傳統辦公大樓出售給開發商，該開發商打算將空置的辦公大樓改建為多戶型經濟適用房。

This transaction was two years in the making and was executed at a purchase price of $101 per square foot showing our creativity and patience in order to achieve the best possible result. Additionally, two properties totaling 211,000 square feet are currently under contract for $27.3 million or $129 per square foot, with one sale scheduled to close later in the quarter and the other early in the fourth quarter.

這筆交易歷時兩年，以每平方英尺 101 美元的購買價格完成，展現了我們的創造力和耐心，以實現最佳結果。此外，目前有兩處總面積為 211,000 平方英尺的房產正在簽訂銷售合同，售價為 2,730 萬美元或每平方英尺 129 美元，其中一處房產計劃在本季度晚些時候完成銷售，另一處房產計劃在第四季度初完成銷售。

These transactions demonstrate our continued ability to monetize noncore assets and redeploy capital while improving the overall quality and durability of our remaining portfolio. We expect to have additional dispositions throughout the remainder of the year.

這些交易表明我們繼續有能力將非核心資產貨幣化並重新部署資本，同時提高我們剩餘投資組合的整體品質和持久性。我們預計今年剩餘時間內還將有更多處置。

We've made significant progress in reorienting our portfolio since our spin despite an unprecedented collapse in demand across the broader office markets. And we believe the progress we have made positions us well to capitalize on our strategic plan to build a more stable, long-duration property mix.

儘管整個辦公市場的需求出現了前所未有的崩潰，但我們自分拆以來在調整投資組合方面取得了重大進展。我們相信，我們所取得的進展使我們能夠利用我們的策略計劃來建立更穩定、更長久的房地產組合。

As discussed on last quarter's call, we are shifting our portfolio concentration over time away from traditional generic suburban office assets and toward dedicated use assets or DUA properties where our tenants perform work that cannot be replicated from home or relocated to a generic office setting.

正如上個季度的電話會議所討論的那樣，我們正在逐漸將投資組合的重點從傳統的通用郊區辦公資產轉向專用資產或 DUA 物業，在這些物業中，我們的租戶所從事的工作無法從家中複製或遷移到通用辦公環境中。

These property types include medical, lab, R&D flex and non-CBD government properties, all of which we already own. Our experience is that these assets tend to exhibit stronger renewal trends, higher tenant investments and more durable cash flows.

這些財產類型包括醫療、實驗室、研發彈性和非 CBD 政府財產，所有這些財產都是我們已經擁有的。我們的經驗是，這些資產往往表現出更強勁的更新趨勢、更高的租戶投資和更持久的現金流。

At quarter end, approximately 32% of our portfolio by annualized base rent and approximately 25% by square footage were dedicated use assets, and we expect this percentage to increase over time through disposition activity and targeted acquisitions.

截至季末，以年化基本租金計算，我們投資組合中約有 32% 為專用資產，按平方英尺計算，約有 25% 為專用資產，我們預計這一比例將透過處置活動和有針對性的收購隨著時間的推移而增加。

The continued demand we're seeing for dedicated use assets reinforces our confidence in this direction. While leasing pace and interest is improving, it is from a very low base. What has not changed is the many challenges all office property owners, including Orion, must continue to address, including obsolescence of properties.

我們看到對專用資產的持續需求增強了我們對這個方向的信心。儘管租賃速度和興趣正在改善，但基數仍然很低。但不變的是，包括 Orion 在內的所有辦公大樓業主都必須繼續應對諸多挑戰，其中包括物業老化。

To that point, tenant concessions remain high and rents continue to be pressured on both renewals and re-tenanting. Furthermore, the governmental uncertainty around Dodge could cause additional leasing unpredictability around our government-owned assets. That said, we continue to have productive and routine interactions with the GSA.

到目前為止，租戶優惠仍然很高，續租和重新租賃的租金繼續面臨壓力。此外，政府對道奇的不確定性可能會導致我們政府擁有的資產的租賃更加不可預測。儘管如此，我們仍繼續與 GSA 進行富有成效的常規互動。

For example, following a relatively short 50-day delay, we received approval from the GSA to perform the landlord work at our Lincoln, Nebraska property, and that new 86,000 square foot lease is expected to commence in December 2025.

例如，經過相對較短的 50 天延遲後，我們獲得了 GSA 的批准，可以在內布拉斯加州林肯市的房產上進行房東工作，新的 86,000 平方英尺的租約預計將於 2025 年 12 月開始生效。

Additionally, nearly our entire GSA portfolio is in the firm term, during which the GSA does not have the option to terminate the lease and none is located in the immediate Washington, DC area.

此外，我們幾乎所有的 GSA 投資組合都處於固定期限內，在此期間 GSA 沒有選擇終止租約的權利，也沒有一個投資組合位於華盛頓特區附近。

Turning briefly to the balance sheet. As we have been communicating for more than three years, Orion has been very successful maintaining significant liquidity to support our ongoing leasing efforts. To do so, we have sold vacant properties, used sale proceeds and cash flow to pay down debt, manage G&A, have been highly selective and targeted on acquisitions and recently aligned our dividend policy.

簡單回顧一下資產負債表。正如我們三年多來的溝通一樣，Orion 非常成功地維持了大量的流動性，以支持我們正在進行的租賃工作。為了實現這一目標，我們出售了空置房產，利用銷售收益和現金流償還債務、管理一般及行政費用，對收購進行了嚴格的篩選和定向收購，並且最近調整了股息政策。

As a result, at May 5, our liquidity remains strong at $244.5 million, represented by cash on hand and the available balance on our revolver. We will inevitably see debt levels rising on both an absolute and debt-to-EBITDA basis in coming years, which we expect to be offset by anticipated earnings growth in subsequent years. We anticipate that the next year or two will represent the low point for our revenue and core FFO earnings, followed by accelerating growth as we move into 2027 and beyond.

因此，截至 5 月 5 日，我們的流動性仍然強勁，達到 2.445 億美元，包括庫存現金和循環信貸的可用餘額。未來幾年，我們將不可避免地看到債務水平在絕對值和債務與 EBITDA 之比上上升，但我們預計這一上升將被隨後幾年的預期盈利增長所抵消。我們預計，未來一兩年將是我們收入和核心 FFO 收益的最低點，隨後隨著 2027 年及以後的成長而加速。

As we head into the second quarter, we have solid leasing activity momentum, and we remain focused on investing in our well-located properties within target markets. To support this, we will continue to fund capital expenditures that enhance asset value that enable us to lease space, retain tenants and attract new ones.

進入第二季度，我們的租賃活動勢頭強勁，我們仍然專注於投資目標市場內位置優越的房產。為了支持這一點，我們將繼續資助資本支出，以提高資產價值，使我們能夠租用空間、留住租戶並吸引新租戶。

Our disciplined approach to capital allocation, including maintaining a low leverage balance sheet over the past several years has positioned us to navigate the current environment even as we face continued cash flow pressure from higher interest rates, elevated vacancy from recent lease roll and the impact of the 22 properties we've sold.

我們嚴謹的資本配置方法，包括在過去幾年中保持低槓桿資產負債表，使我們能夠應對當前環境，即使我們面臨來自更高利率、近期租賃滾動導致的空置率上升以及我們已售出的 22 處房產的影響等持續的現金流壓力。

From a G&A perspective, we are highly cognizant that as a smaller company evolving our strategy and shrinking the size of the portfolio before growing, we must control this line item. To that point, as mentioned last quarter, our Chief Investment Officer, Gary Landriau, will retire on June 30, and we will reallocate his responsibilities internally.

從一般及行政管理角度來看，我們非常清楚，作為一家規模較小的公司，在發展之前不斷改進策略並縮小投資組合規模，因此我們必須控制此項。就這一點而言，正如上個季度所提到的，我們的首席投資長 Gary Landriau 將於 6 月 30 日退休，我們將在內部重新分配他的職責。

Gavin and I have foregone any salary increase for this year. Average salary increases for the rest of the Orion team are below inflation. And as inevitable attrition has occurred, we have shrunk our optimal headcount.

加文和我已放棄今年的任何加薪。Orion 團隊其他成員的平均薪資增幅低於通貨膨脹率。由於不可避免的人員流失，我們縮減了最佳員工人數。

That said, it is imperative that we maintain the team to operate as a public company and to execute on our asset management intensive strategy to manage our portfolio given the growing multi-tenant component. We recognize as a smaller-sized REIT that G&A as a percentage of assets and revenues is of particular importance, and we are doing our best to ensure that they are aligned.

話雖如此，考慮到多租戶組件的不斷增長，我們必須維持團隊作為上市公司運營，並執行我們的資產管理密集型策略來管理我們的投資組合。我們認識到，作為一個規模較小的房地產投資信託基金，一般及行政費用佔資產和收入的百分比尤為重要，我們正在盡最大努力確保它們保持一致。

Importantly, due to these efforts, along with other initiatives, we remain solidly profitable on both an FFO and core FFO per share basis. With another strong quarter of leasing and asset sales behind us and a healthy leasing pipeline ahead, we are encouraged that Orion's transformation is heading in a positive direction. We look forward to further portfolio stabilization and building on the company's many strengths.

重要的是，由於這些努力以及其他舉措，我們在每股 FFO 和核心 FFO 基礎上仍然保持穩健的利潤。隨著又一個季度的強勁租賃和資產銷售以及未來健康的租賃管道，我們很高興看到 Orion 的轉型正朝著積極的方向發展。我們期待進一步穩定投資組合併發揮公司的許多優勢。

With that, I will pass the call to Gavin.

說完，我將把電話轉給加文。

Thanks, Paul. Orion generated total revenues of $38 million in the first quarter as compared to $47.2 million in the same quarter of the prior year. We reported a net loss attributable to common stockholders of $9.4 million or $0.17 per share as compared to a net loss of $26.2 million or $0.47 per share reported in the first quarter of 2024. Core FFO for the quarter was $10.7 million or $0.19 per share as compared to $20.4 million or $0.36 in the same quarter of 2024.

謝謝，保羅。Orion 第一季總營收為 3,800 萬美元，而去年同期為 4,720 萬美元。我們報告的普通股股東淨虧損為 940 萬美元或每股 0.17 美元，而 2024 年第一季報告的淨虧損為 2,620 萬美元或每股 0.47 美元。本季核心 FFO 為 1,070 萬美元或每股 0.19 美元，而 2024 年同期為 2,040 萬美元或每股 0.36 美元。

Adjusted EBITDA was $17.4 million versus $26.7 million in the same quarter of 2024. The changes year-over-year are primarily related to vacancies and timing of leasing activity. G&A in the first quarter came in as expected at $4.9 million, consistent with the same quarter of 2024. Savings to G&A brought on by our restructuring efforts Paul mentioned earlier, will begin to contribute in the third and fourth quarters of this year.

調整後的 EBITDA 為 1,740 萬美元，而 2024 年同期為 2,670 萬美元。與去年同期相比的變化主要與空置率和租賃活動時間有關。第一季的 G&A 費用達到預期的 490 萬美元，與 2024 年同期持平。保羅先前提到的重組努力所帶來的一般及行政費用的節省將在今年第三季和第四季開始產生效益。

CapEx in the first quarter was $8.3 million compared to $3.4 million in the same quarter of 2024. As we have previously discussed, CapEx timing is dependent on when leases are signed and work is completed on properties. CapEx will likely increase over time as leases roll and new and existing tenants draw upon tenant improvement allowances.

第一季的資本支出為 830 萬美元，而 2024 年同期為 340 萬美元。正如我們之前所討論的，資本支出時間取決於簽署租約的時間以及房產工程的完成時間。隨著租約的延長以及新舊租戶利用租戶改善津貼，資本支出可能會隨著時間的推移而增加。

Turning to the balance sheet. At quarter end, we had total liquidity of $227.8 million, comprised of $9.8 million cash and cash equivalents, including the company's pro rata share of cash from the Arch Street joint venture and $218 million available capacity on the credit facility revolver.

轉向資產負債表。截至季末，我們的總流動資金為 2.278 億美元，包括 980 萬美元的現金和現金等價物，包括公司從 Arch Street 合資企業按比例獲得的現金和 2.18 億美元的信貸額度循環信貸可用容量。

As Paul discussed, we intend to maintain significant liquidity on the balance sheet for the foreseeable future to fund expected capital commitments to support our future leasing efforts and provide the financial flexibility needed to execute on our business plan for the next several years.

正如保羅所討論的，我們打算在可預見的未來在資產負債表上保持大量流動性，以資助預期的資本承諾，支持我們未來的租賃工作，並提供執行未來幾年業務計劃所需的財務靈活性。

We ended the quarter with $531.2 million of outstanding debt, including a $355 million CMBS loan that is a securitized mortgage loan collateralized by 19 properties maturing in February 2027. $132 million of floating rate debt on the credit facility revolver maturing in May 2026, $18 million under the mortgage loan for the San Ramon property maturing in December of 2031 and $26.2 million, representing our share of the Arch Street joint venture mortgage debt maturing in November of 2025 with a borrower option to extend for an additional 12 months until November of 2026.

截至本季末，我們的未償債務為 5.312 億美元，其中包括 3.55 億美元的 CMBS 貸款，這是一筆證券化抵押貸款，由 19 處房產作為抵押，將於 2027 年 2 月到期。 1.32 億美元的浮動利率信貸額度債務將於 2026 年 5 月到期，1800 萬美元的聖拉蒙房產抵押貸款將於 2031 年 12 月到期，以及 2620 萬美元，代表我們在 Arch Street 合資企業抵押貸款中的份額，將於 2025 年 112 月，16 月 126 月 126 月 12676 月。

On May 6, 2025, Orion's Board of Directors declared a quarterly cash dividend of $0.02 per share for the second quarter of 2025, payable on July 15, 2025, to stockholders of record as of June 30, 2025.

2025 年 5 月 6 日，Orion 董事會宣布 2025 年第二季現金股利為每股 0.02 美元，將於 2025 年 7 月 15 日支付給截至 2025 年 6 月 30 日登記在冊的股東。

Moving on to our outlook for 2025. We are reaffirming our expectations for our full year 2025 guidance for core FFO range of $0.61 to $0.70 per diluted share, G&A range of $19.5 million to $20.5 million and net debt to adjusted EBITDA is expected to range from 8 times to 8.8 times. Excluding noncash compensation, we expect 2025 G&A will be in line or slightly better than 2024.

接下來展望 2025 年。我們重申對 2025 年全年指引的預期，即核心 FFO 範圍為每股攤薄收益 0.61 美元至 0.70 美元，G&A 範圍為 1950 萬美元至 2050 萬美元，淨債務與調整後 EBITDA 之比預計為 8 倍至 8.8 倍。不包括非現金薪酬，我們預計 2025 年的 G&A 將與 2024 年持平或略好。

With that, we will open the line for questions.

接下來，我們將開放問答熱線。

Thank you. We will now be conducting a question and answer session. (Operator instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Mitch Germain, Citizens Bank.

米奇‧傑曼 (Mitch Germain)，公民銀行。

Good morning. I'm curious about tone of discussions with prospects and if you're seeing any sort of lengthening of the deal pipeline for leases?

早安.我很好奇與潛在客戶討論的語氣，以及您是否看到租賃交易管道有任何延長？

Good morning, Mitch, And by lengthening, you mean the decision-making period from -- for a tenant to make a decision to stay in the property?

早安，米奇，您說的延長是指租戶做出是否繼續住在該房產的決定的時間嗎？

Exactly. I know it's been longer than typical, and I'm curious if that's shifted even more unfavorably.

確切地。我知道這比平常要長，我很好奇這是否發生了更不利的變化。

Well, it has been long. Ever since the sort of the collapse in the market, we've experienced long delays in tenants making decisions. I'd say our portfolio is a little idiosyncratic in that we've got a small number of properties.

嗯，已經過去很久了。自從市場崩潰以來，我們經歷了租戶決策的長期延遲。我想說我們的投資組合有點特殊，因為我們擁有的房產數量很少。

So any given renewal in any given quarter has an outsized impact. I would say that we have not yet noticed a big change in the decision-making speed, but that decision-making speed has still been quite long for the past six months or a year. We have had -- on the GSA front, we've had a little bit of interaction with the GSA.

因此，任何一個季度的任何一次更新都會產生巨大的影響。我想說我們還沒有註意到決策速度有什麼重大的變化，但是在過去六個月或一年的時間裡，決策速度仍然相當長。在 GSA 方面，我們與 GSA 有過一些互動。

And as I mentioned in my prepared remarks, we did have a delay there of an approval from the GSA that we expected to happen relatively quickly. But in fact, it took about 50 days to occur, but then it did, in fact, happen, and we're off to the races. So haven't yet seen a big impact on the current environment of the decision-making.

正如我在準備好的演講中提到的那樣，我們確實推遲了 GSA 的批准，而我們預計該批准會相對較快地完成。但事實上，它花了大約 50 天的時間才發生，但它確實發生了，我們就開始比賽了。因此尚未看到對當前決策環境產生重大影響。

That's helpful. Curious about -- I think you made some opportunistic property sales of occupied assets. Is there any sort of background that you can share on, I think, one closed in April and one is pending for the fourth quarter. Anything you could share there?

這很有幫助。好奇——我認為你對一些已佔用的資產進行了投機性的房地產銷售。您能否分享一些背景資訊？我認為，一個專案在四月結束，另一個專案將在第四季度完成。能分享什麼嗎？

Yes. I mean the assets we sold were vacant and we have a couple that are pending, one that continues to be occupied, but that has a very, very short lease term. I would say we have been quite pleased with the ability to get properties sold and the absolute value at which we've been able to sell them.

是的。我的意思是，我們出售的資產都是空的，還有一些出售的資產，還有一個仍在使用，但租賃期限非常非常短。我想說，我們對能夠售出房產以及其絕對價值感到非常滿意。

And that includes some of the ones that are in the future, the ones we have this year, we've got some -- what we think is favorable pricing from an average perspective as compared to where we have been selling properties.

其中包括一些未來的房產，包括我們今年已經擁有的一些房產，我們認為從平均角度來看，與我們出售房產的地方相比，這些房產的定價是有利的。

But again, each property is individual in nature, and it has its own characteristics. And our buyers, for the most part are focused on these individual properties and willing to pay what we think are good prices for them.

但同樣，每種財產本質上都是獨立的，都有自己的特色。我們的買家大多關注這些個人房產，並願意支付我們認為合適的價格。

On a going-forward basis, I think we will look to sell -- we may look to sell stabilized properties if we think that we can recycle that capital into dedicated use assets that gives us longer duration and more stabilized cash flows.

從未來來看，我認為我們會考慮出售——如果我們認為可以將資本回收為專用資產，從而為我們提供更長的期限和更穩定的現金流，我們可能會考慮出售穩定的資產。

Got you. So three sold, two under contract, how -- are you testing waters now with vacant and occupied assets? Is that how we should consider how this process may play out?

明白了。那麼，三處已經售出，兩處已簽訂合同，您現在如何利用空置和已佔用的資產進行試水？我們是否應該這樣考慮這個過程將如何進行？

Yes. That's exactly how you should consider it, Mitch. We are -- in fact, we have a number of properties, what I would characterize as in the market. And by that, I mean, we have brokers engaged who are looking to gauge where the potential sales could be, and that's for both for vacant properties and for occupied properties.

是的。米奇，這正是你該考慮的。事實上，我們擁有許多房產，我將其描述為在市場上的房產。我的意思是，我們聘請了經紀人來評估潛在的銷售地點，包括空置房產和已佔用房產。

And look, I would say that pretty much every time we have a vacant property that's for lease, we also advertise it for sale at the same time. So we're always constantly evaluating the market. Our anticipation is that we will have some additional sales this year, but we have to see where the pricing comes out.

而且，我想說的是，幾乎每次我們有空置房產出租時，我們也會同時發佈出售廣告。因此我們始終在不斷評估市場。我們預計今年的銷售量還會有一些增加，但我們必須看看定價如何。

Got you. Last one for me. I have to apologize for my memory. What's happening with the former Walgreens assets?

明白了。對我來說是最後一個。我必須為我的記憶道歉。前沃爾格林資產的情況如何？

I'm going to let Gary Landriau answer that one.

我打算讓加里·蘭德里奧 (Gary Landriau) 來回答這個問題。

Yes, Mitch. So we are under an agreement with an institutional group that is currently marketing the site, trying to develop a list of prospects that would anchor the site. And it will ultimately be converted to -- my expectation is some retail and entertainment combination of users.

是的，米奇。因此，我們與目前正在行銷該網站的代理商團體達成了一項協議，試圖制定一份可以作為該網站支柱的潛在客戶名單。它最終將轉化為——我的期望是一些零售和娛樂用戶的結合。

We've also gotten the green light to begin work to demolish the existing office buildings. So that work is starting. It's done mostly to reduce our carry cost, but also because we expect the development to start sometime in 2026 is our expectation, although obviously subject to a lot of factors.

我們也獲得了拆除現有辦公大樓的批准。所以這項工作已經開始了。這樣做主要是為了降低我們的持有成本，也是因為我們預計開發將在 2026 年某個時候開始，儘管這顯然受到許多因素的影響。

So the deal would be subject to them being able to execute on some sort of lease, right? Is that the way to think about it?

所以這筆交易取決於他們是否能夠執行某種租約，對嗎？是這樣思考的嗎？

That's correct. They're in due diligence right now on the site, on the prospects and on the feasibility of the business plan that they're developing.

沒錯。他們目前正在對場地、前景以及正在製定的商業計劃的可行性進行盡職調查。

Excellent. And congrats to you, Gary, on fantastic career and appreciate your time, guys.

出色的。加里，恭喜你事業有成，謝謝你抽出時間，夥伴們。

Thank you very much, Mitch.

非常感謝，米奇。

Thank you. And we have reached the end of the question and answer session, and I would like to turn the call back over to the management for closing comments.

謝謝。問答環節已經結束，我想將電話轉回給管理階層，請他們發表結束語。

Okay. Thank you all very much. We appreciate you taking the time this morning, and we look forward to further updating you at the conclusion of the second quarter. Thank you.

好的。非常感謝大家。感謝您今天上午抽出時間，我們期待在第二季結束時向您提供進一步的更新資訊。謝謝。

Thank you, and this concludes today's conference. You may disconnect your live at this time. Thank you for your participation.

謝謝大家，今天的會議到此結束。現在您可以斷開您的直播。感謝您的參與。