Orion Properties Inc (ONL) 2025 Q3 法說會逐字稿

Greetings, and welcome to Orion Properties third-quarter 2025 earnings call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul Hughes, General Counsel for Orion. Thank you. You may begin.

各位好，歡迎參加Orion Properties 2025年第三季財報電話會議。再次提醒，本次會議正在錄影。現在我將把電話交給Orion公司的總法律顧問保羅·休斯。謝謝。你可以開始了。

Thank you, and good morning, everyone. Yesterday, Orion released its results for the quarter ended September 30, 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，大家早安。昨天，Orion 公佈了截至 2025 年 9 月 30 日的季度業績；向美國證券交易委員會提交了 10-Q 表格；並在其網站 onlreit.com 上發布了收益補充資訊。

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 during this call.

在今天的電話會議中，我們將討論Orion對2025日曆年的業績預期和其他前瞻性聲明，這些聲明基於管理層目前的預期，並受到某些風險的影響，這些風險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獲利報告中以及我們的 10-Q 表格和其他提交給美國證券交易委員會的文件中進行了討論。Orion公司不承擔在本次電話會議中更新任何前瞻性聲明的義務。

We will also be discussing non-GAAP financial measures, such as funds from operations or FFO; and core funds from operations or core FFO. 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.

我們也將討論非GAAP財務指標，例如營運資金或FFO；以及核心營運資金或核心FFO。這些非公認會計準則財務指標不能取代依照公認會計準則編製的財務資訊。Orion 的收益報告和補充文件包括將我們的非 GAAP 財務指標與最直接可比較的 GAAP 指標進行調整。

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 will be Chris Day, our Chief Operating Officer. With that, I am now going to turn the call over to Paul McDowell.

今天主持電話會議的是 Orion 的執行長 Paul McDowell 和財務長 Gavin Brandon。我們的營運長克里斯·戴也將參加問答環節。接下來，我將把電話交給保羅‧麥克道爾。

Thank you, Paul. Good morning, everyone, and thank you for joining us on Orion Properties third-quarter earnings call. Today, I will highlight the substantial progress in executing on our business plan and provide an update on our ongoing leasing, disposition, and acquisition activity for the quarter. Following my remarks, Gavin will review our financial results and improved guidance outlook for the rest of the year.

謝謝你，保羅。各位早安，感謝各位參加Orion Properties第三季財報電話會議。今天，我將重點介紹我們在執行業務計劃方面取得的實質進展，並就本季正在進行的租賃、處置和收購活動提供最新情況。在我發言之後，加文將回顧我們的財務表現以及今年剩餘時間的改進後的業績預期。

We had another very productive leasing quarter, with 303,000 square feet of space leased at a weighted average lease term or WALT of over 10 years and an additional 57,000 square feet signed after quarter-end. Our primary focus remains on continuing to enhance the quality and durability of our portfolio and its associated cash flows.

我們又迎來了一個非常成功的租賃季度，總共出租了 303,000 平方英尺的空間，加權平均租賃期限 (WALT) 超過 10 年，季度末後又簽署了 57,000 平方英尺的租賃合約。我們的主要重點仍然是不斷提高我們投資組合的品質和持久性及其相關的現金流。

One critical metric we use to measure that success is the weighted average lease term for the portfolio, which is now 5.8 years or approaching six years. This is a material improvement from the roughly 3.5 years at the time of our spin.

我們用來衡量成功的關鍵指標是投資組合的加權平均租賃期限，目前為 5.8 年，即將達到 6 年。這比我們上次分叉時大約 3.5 年的時間有了實質的改善。

This substantial progress reflects the steady execution of our business plan and the increasing stability of our tenant base. Year to date through November 6, we have completed 919,000 square feet of leasing, which is in addition to the 1.1 million square feet we leased last year, reflecting the improving market backdrop.

這項實質進展反映了我們業務計劃的穩定執行以及我們租戶基礎的日益穩定。截至今年11月6日，我們已完成91.9萬平方英尺的租賃，加上去年租賃的110萬平方英尺，反映市場環境的改善。

Included in the total for the third quarter is a 5.4-year new lease agreement for 80,000 square feet at our Kennesaw, Georgia, property that we mentioned on the last call. We also signed several renewals during the quarter, including a 15-year extension with AGCO Corporation for 126,000 square feet in Duluth, Georgia; a seven-year extension with T-Mobile for 69,000 square feet in Nashville, Tennessee; and a 15-year extension with the United States government for 16,000 square feet in Fort Worth, Texas.

第三季總額包含我們在上一次電話會議上提到的位於喬治亞州肯尼索的物業簽訂的 80,000 平方英尺的 5.4 年新租賃協議。本季度我們還簽署了幾項續約協議，包括與 AGCO 公司續簽 15 年，租用佐治亞州德盧斯 126,000 平方英尺的場地；與 T-Mobile 續簽 7 年，租用田納西州納什維爾 69,000 平方英尺的場地；以及與美國政府續簽 15 年，租用德克薩斯州沃思堡 16,000 平方英尺的場地。

Importantly, rent spreads on lease renewal activity were again positive in the third quarter, up over 2% for renewals and over 4% for total leasing activity. Overall, leasing momentum remains constructive heading into year-end and 2026. Our pipeline, which includes transactions in both the discussion and documentation stage, is over 500,000 square feet and includes several longer-duration renewals and new leases with terms greater than the average of our portfolio.

值得注意的是，第三季租賃續約活動的租金差價再次為正，續約租金差價上漲超過 2%，整體租賃活動租金差價上漲超過 4%。整體而言，租賃市場在年底和2026年仍保持積極動能。我們的在建項目（包括處於討論和文件編制階段的交易）面積超過 50 萬平方英尺，其中包括幾項期限較長的續租和新租約，其期限均高於我們投資組合的平均水平。

Orion's operating property occupancy rate was 72.8% at quarter-end as compared to 73.7% at December 31, 2024. The year-to-date change is impacted by these rollovers during the year and resulting vacancies we are holding on the balance sheet, which we intend to sell or lease in the reasonably near term.

Orion 的營運物業入住率在季度末為 72.8%，而截至 2024 年 12 月 31 日為 73.7%。今年迄今為止的變化受到本年度的資產結轉以及由此產生的資產負債表上的空置資產的影響，我們打算在不久的將來出售或出租這些資產。

Adjusted for operating properties that are currently under agreement to be sold or have been sold since quarter-end, our property occupancy rate would be 74.5%. We continue to expect that our portfolio occupancy will rise materially next year and even further the next as we lease space, sell vacant properties, and selectively recycle capital into new assets.

如果扣除目前已達成出售協議或自季度末以來已售出的營運物業，我們的物業入住率將為 74.5%。我們繼續預期，明年我們的投資組合入住率將大幅上升，後年還將進一步上升，因為我們將出租空間、出售空置房產，並將有選擇地將資金重新投入新資產。

When talking about our occupancy expectations, it's important to note that our heavy lease rollover has improved markedly year over year. For example, in 2026, we have only $10.8 million of rent subject to rollover as compared to $39.4 million of rent that was subject to rollover risk last year in 2024.

在談到我們的入住率預期時，值得注意的是，我們大量的租賃續約情況已逐年顯著改善。例如，2026 年，我們只有 1,080 萬美元的租金面臨延期風險，而去年（2024 年）面臨延期風險的租金為 3,940 萬美元。

As further evidence of our active business plan execution, so far this year, we have closed on the sale of seven vacant or soon-to-be vacant properties and one stabilized traditional office property, totaling 761,000 square feet for a gross sales price of $64.4 million or about $85 per square foot.

作為我們積極執行商業計劃的進一步證據，今年到目前為止，我們已經完成了七處空置或即將空置的房產和一處穩定的傳統辦公物業的出售，總面積達 761,000 平方英尺，總銷售價格為 6440 萬美元，即每平方英尺約 85 美元。

We also have agreements in place to sell another four properties, including three vacant or soon-to-be vacant properties and one stabilized traditional office property, totaling over 500,000 square feet for $46.6 million or about $92 per square foot. These transactions are expected to close in the fourth quarter of 2025 and first quarter of 2026.

我們還簽署了出售另外四處房產的協議，其中包括三處空置或即將空置的房產和一處運營穩定的傳統辦公房產，總面積超過 50 萬平方英尺，售價為 4,660 萬美元，即每平方英尺約 92 美元。預計這些交易將於 2025 年第四季和 2026 年第一季完成。

Combined, that is close to 1.3 million square feet with gross proceeds of more than $110 million. Collectively, we have sold 27 properties since the spin, totaling 2.7 million square feet, which equates to more than 25% of the inherited portfolio's rentable square feet, saving an estimated $39 million of cumulative carry costs.

合計面積接近 130 萬平方英尺，總收益超過 1.1 億美元。自分拆以來，我們總共售出了 27 處房產，總面積達 270 萬平方英尺，相當於繼承的投資組合可出租面積的 25% 以上，累計節省了約 3,900 萬美元的持有成本。

Even with all this progress, we continue to evaluate our portfolio with particular focus on obsolete buildings and those assets requiring substantial capital investment. This includes the former Walgreens campus in Deerfield, Illinois, where we are close to completing the demolition of the outdated office buildings. And we expect to sell the 37.4-acre site in the coming quarters.

即使取得了這些進展，我們仍將繼續評估我們的投資組合，特別關注過時的建築物和需要大量資本投資的資產。這其中包括位於伊利諾州迪爾菲爾德的前沃爾格林園區，我們即將完成對那裡老舊辦公大樓的拆除工作。我們預計將在未來幾季內售出這塊 37.4 英畝的土地。

2025 marked a year of accelerating portfolio transformation, which positions us well for next year and beyond. We believe the sale transactions we've completed and are continuing to work on provide very attractive exit points for these properties and avoid the uncertainty and significant capital investment and carrying costs to re-tenant the assets.

2025 年標誌著投資組合轉型加速的一年，這將使我們為明年及以後的發展奠定良好的基礎。我們相信，我們已經完成和正在繼續進行的銷售交易為這些房產提供了非常有吸引力的退出點，並避免了重新出租資產的不確定性、巨額資本投資和持有成本。

The stabilized asset sales we have announced will also allow us to continue to shift our portfolio away from traditional office properties. These transactions demonstrate our continued ability to monetize noncore assets and redeploy capital, while improving the overall quality and durability of our remaining portfolio as demonstrated by our increasing wall.

我們宣布的穩定資產出售計劃也將使我們能夠繼續調整投資組合，減少對傳統辦公物業的依賴。這些交易表明我們有能力繼續將非核心資產變現並重新部署資本，同時提高剩餘投資組合的整體品質和持久性，正如我們不斷增長的資產規模所證明的那樣。

We are also evaluating a number of opportunities to recycle the proceeds from our disposition activity, as we continue to shift our portfolio concentration away from traditional suburban office properties and towards dedicated use assets or DUA, where our tenants perform work that cannot be replicated from home or relocated to a generic office setting.

我們也正在評估多種機會，以回收處置活動所得收益，因為我們將繼續把投資組合的重心從傳統的郊區辦公物業轉移到專用用途資產（DUA）上，在這些資產中，我們的租戶從事的工作無法在家複製，也無法搬遷到普通的辦公環境中。

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 investment, and more durable cash flows.

這些物業類型包括醫療、實驗室、研發彈性辦公室和非中央商務區政府物業，而這些物業我們都已經擁有。我們的經驗表明，這些資產往往表現出更強的續租趨勢、更高的租戶投資和更持久的現金流。

We are continuing to look carefully at limited targeted acquisitions of DUAs to recycle capital, stabilize rental revenues, increase portfolio WALT, and further enhance portfolio quality. At quarter-end, approximately 33.9% of our portfolio by annualized base rent and approximately 24.6% by square footage were DUA. And this percentage will increase over time through disposition activity and targeted acquisition.

我們將繼續仔細研究有針對性的有限收購DUA，以回收資本、穩定租金收入、增加投資組合的加權平均長期價值，並進一步提高投資組合的品質。截至季末，以年化基本租金計算，我們投資組合中約有 33.9% 為 DUA，以面積計算，約 24.6% 為 DUA。隨著資產處置和定向收購的進行，這一比例也會隨著時間的推移而增加。

Orion has also been very proactive in managing leverage while 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, managed G&A, have been highly selective on acquisitions, and aligned our dividend policy.

Orion 在管理槓桿方面也非常積極主動，同時保持充足的流動資金，以支持我們正在進行的租賃工作。為此，我們出售了空置房產，利用出售所得和現金流償還債務，管理一般及行政費用，對收購項目進行了嚴格篩選，並調整了股息政策。

As a result, our net debt to annualized year-to-date adjusted EBITDA was a relatively conservative 6.7 times at quarter-end. We will continue disciplined execution, focused on portfolio stabilization and enhancement with the goal of further unlocking long-term value, which we believe will make Orion attractive to investors and potential strategic partners alike.

因此，截至季度末，我們的淨債務與年初至今調整後 EBITDA 的比率相對保守，為 6.7 倍。我們將繼續秉持嚴謹的執行策略，專注於投資組合的穩定和提升，以期進一步釋放長期價值，我們相信這將使 Orion 對投資者和潛在的戰略合作夥伴都更具吸引力。

We've made very significant progress derisking the portfolio and executing the business plan this year, with a portfolio WALT now approaching six years, more than 900,000 square feet of leasing, and 12 properties sold or under contract for sale totaling 1.3 million square feet for over $110 million.

今年，我們在降低投資組合風險和執行商業計劃方面取得了非常顯著的進展，投資組合的平均租賃期限 (WALT) 已接近六年，租賃面積超過 90 萬平方英尺，已售出或已簽訂出售合約的 12 處房產總面積達 130 萬平方英尺，總價值超過 1.1 億美元。

Net of lease-related termination income we believe 2025 should be the bottom for core FFO per share and that next year and subsequent years should show accelerated -- accelerating earnings growth, coupled with rising occupancy.

在扣除與租賃相關的終止收入後，我們認為 2025 年應該是核心 FFO 每股的最低點，而明年及以後的幾年應該會出現加速增長——盈利增長加速，同時入住率上升。

With that, I'll turn the call over to Gavin.

接下來，我將把電話交給加文。

Thanks, Paul. Orion generated total revenues of $37.1 million in the third quarter as compared to $39.2 million in the same quarter of the prior year. Core FFO for the quarter was $11 million or $0.19 per share as compared to $12 million or $0.21 per share in the same quarter of 2024. Core FFO results for the year-to-date 2025 period were $33.1 million or $0.59 per share and include approximately $0.05 per share of lease-related termination income.

謝謝你，保羅。Orion 第三季總營收為 3,710 萬美元，而上年同期為 3,920 萬美元。本季核心FFO為1,100萬美元，即每股0.19美元，而2024年同期為1,200萬美元，即每股0.21美元。截至 2025 年 1 月 21 日，核心 FFO 業績為 3,310 萬美元，即每股 0.59 美元，其中包括每股約 0.05 美元的租賃相關終止收入。

Included in the $0.05 per share is $0.02 per share associated with the simultaneous sale and early lease termination of a traditional office building in Fresno, California. We will recognize an additional $0.03 per share of lease termination income from this transaction in the fourth quarter.

每股 0.05 美元中​​包含與同時出售和提前終止位於加利福尼亞州弗雷斯諾的一棟傳統辦公大樓相關的每股 0.02 美元。我們將在第四季度確認來自此項交易的每股額外 0.03 美元的租賃終止收入。

Adjusted EBITDA was $17.4 million versus $19.1 million in the same quarter of 2024. The changes year over year are primarily related to vacancies, a smaller portfolio, and timing of leasing activity. G&A in the third quarter came in as expected at $4.6 million compared to $4.5 million in the same quarter of 2024.

調整後 EBITDA 為 1,740 萬美元，而 2024 年同期為 1,910 萬美元。與前一年相比，變化主要與空置率、較小的投資組合以及租賃活動的時機有關。第三季一般及行政費用如預期為 460 萬美元，而 2024 年同期為 450 萬美元。

CapEx and leasing costs in the third quarter were $18.3 million compared to $6.1 million in the same quarter of 2024. The increase in CapEx in the 2025 period was driven by the acceleration in leasing activity. As we have discussed previously, CapEx timing is dependent on when leases are executed and work is completed on properties. We expect to allocate more capital to CapEx over time as leases roll and new and existing tenants drop on their tenant improvement allowances.

第三季資本支出和租賃成本為 1,830 萬美元，而 2024 年同期為 610 萬美元。2025 年期間資本支出增加是由租賃活動的加速所推動的。正如我們之前討論過的，資本支出時間取決於租賃合約的簽訂時間和房產工程的完工時間。隨著租約到期，新舊租戶的租戶裝修補貼減少，我們預計未來將有更多資金投入資本支出。

Turning to the balance sheet, at quarter-end, we had total liquidity of $273 million, comprised of $33 million of cash and cash equivalents, including the company's pro rata share of cash from the Arch Street joint venture and $240 million of available capacity on the credit facility revolver.

再來看資產負債表，截至季末，我們的總流動資金為 2.73 億美元，其中包括 3,300 萬美元的現金及現金等價物，包括公司按比例從 Arch Street 合資企業獲得的現金份額，以及 2.4 億美元的可用信貸額度。

We intend to maintain significant liquidity on the balance sheet to fund expected capital commitments to support our ongoing leasing successes and provide the financial flexibility needed to execute on our business plan for the next several years.

我們計劃在資產負債表上保持充足的流動性，以資助預期的資本承諾，從而支持我們持續的租賃業務成功，並提供未來幾年執行業務計劃所需的財務靈活性。

We ended the quarter with net debt to gross real estate assets of 33.4% and total outstanding debt of $508.9 million, including our nonrecourse $355 million CMBS loan that is a securitized mortgage loan collateralized by 19 properties maturing in February 2027; $110 million of floating rate debt on a credit facility revolver maturing in May 2026; $18 million under the mortgage loan for our San Ramon property maturing in December 2031; and $25.9 million, representing our share of the Arch Street joint venture mortgage debt maturing in November 2025.

本季末，我們的淨債務與房地產總資產之比為 33.4%，未償還債務總額為 5.089 億美元，其中包括：我們 3.55 億美元的無追索權 CMBS 貸款，這是一筆以 19 處房產為抵押的證券化抵押貸款，將於 2027 年 2 月到期；月到期；我們位於聖拉蒙的房產抵押貸款項下的 1800 萬美元債務，將於 2031 年 12 月到期；以及 2590 萬美元，代表我們在 Arch Street 合資企業抵押貸款債務中的份額，將於 2025 年 11 月到期。

The joint venture has exercised the option to extend this debt obligation for an additional 12 months until November 2026. And the lenders are in the process of confirming all extension conditions have been met. We further reduced our borrowings under the credit facility revolver to $92 million during October.

該合資企業已行使選擇權，將該債務義務再延長 12 個月至 2026 年 11 月。貸款方正在確認所有延期條件均已滿足。10 月份，我們進一步將循環信貸額度下的借款減少至 9,200 萬美元。

Regarding our credit facility revolver, as mentioned, the scheduled maturity date for this obligation is in May 2026 and we have no remaining extension options. We continue to have productive discussions with our lenders about extending and/or refinancing this debt obligation in keeping with our current business plan. And we fully expect to be successful.

關於我們的循環信貸額度，如前所述，該債務的預定到期日為 2026 年 5 月，我們沒有剩餘的延期選擇權。我們將繼續與貸款方就根據我們目前的商業計劃延長和/或再融資這項債務義務進行富有成效的討論。我們完全有信心取得成功。

Extending and restructuring our credit facility continues to be among our highest priorities, and we will share updates on our progress on this front in future quarters. There are additional disclosures regarding our credit facility in our Form 10-Q. On November 5, 2025, Orion's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2025.

延長和重組我們的信貸安排仍然是我們的首要任務之一，我們將在未來幾季分享這方面的進展。我們的 10-Q 表格中還有關於我們信貸安排的其他揭露資訊。2025 年 11 月 5 日，Orion 董事會宣布 2025 年第四季每股派發現金股利 0.02 美元。

Moving to guidance, we are improving our outlook for core FFO, net debt-to-adjusted EBITDA, and G&A in 2025. We are raising our full-year core FFO guidance to a new range of $0.74 to $0.76 per share, up from our prior range of $0.67 to $0.71 per share.

在績效指引方面，我們提高了對 2025 年核心 FFO、淨債務與調整後 EBITDA 比率以及一般及行政費用的預期。我們將全年核心FFO預期上調至每股0.74美元至0.76美元，高於先前每股0.67美元至0.71美元的預期。

The increase is primarily caused by lease termination income from a negotiated early termination of the lease at our Fresno property, in conjunction with the property disposition. The termination payment was agreed to in the third quarter. And the income will be straight-lined through the disposition date, which occurred in October. And we will generate approximately $0.05 per share of lease termination income for 2025.

此次成長主要是由於我們弗雷斯諾物業的租賃合約提前終止，以及該物業的處置，導致租賃終止收入增加。終止付款協議是在第三季達成的。收入將以直線法計算至處置日，處分日為 10 月。2025 年，我們將產生每股約 0.05 美元的租約終止收入。

We are also improving our outlook for net debt to adjusted EBITDA, which is now anticipated to range from 6.7 times to 7.2 times, down from 7.3 times to 8.3 times. The improvement is primarily driven by our continued net debt reduction efforts through expected property disposition proceeds as well as the lease termination income I discussed earlier, benefiting adjusted EBITDA.

我們同時也改善淨負債與調整後 EBITDA 比率的預期，目前預計該比率將從 7.3 倍至 8.3 倍下調至 6.7 倍至 7.2 倍。這項改善主要得益於我們持續努力減少淨債務，預期的資產處置收益以及我之前提到的租賃終止收入，從而提高了調整後的 EBITDA。

Lastly, we are improving and tightening our G&A range to $19.5 million to $20 million from $19.5 million to $20.5 million. While we are not providing formal 2026 guidance yet, we do expect 2025 to represent a trough for our core FFO, excluding a total of $0.08 per share of 2025 lease-related termination income, as our recent leasing and capital initiatives begin to translate into improved recurring earnings next year and beyond.

最後，我們將一般及行政費用範圍從 1,950 萬美元至 2,050 萬美元調整為 1,950 萬美元至 2,000 萬美元。雖然我們尚未提供 2026 年的正式指引，但我們預計 2025 年將是我們核心 FFO 的低谷期，不包括 2025 年每股 0.08 美元的租賃相關終止收入，因為我們最近的租賃和資本舉措將在明年及以後開始轉化為不斷改善的經常性收益。

With that, we'll open the line for questions. Operator?

接下來，我們將開放提問環節。操作員？

(Operator Instructions) Mitch Germain, Citizens Bank.

（操作員說明）米奇·傑曼，公民銀行。

Thank you, and good morning. Just I want to talk about some of the puts and takes of guidance. You get the benefit of the lease term income. You're selling some vacancy, which helps with some of the expense drag, though it seems like, in effect, if I look at last quarter, the lease term income actually went down.

謝謝，早安。我只想談談指導方面的一些看法和收穫。您可以獲得租賃期收入。你們出售了一些空置房產，這有助於緩解一些費用壓力，但實際上，如果我看一下上個季度的數據，租賃期收入似乎下降了。

So just maybe kind of describe some of the puts and takes that helped you kind of shape where your outlook is today.

所以，請您描述一下，是什麼讓您形成了今天的觀點？

Gavin, do you want to take that?

加文，你想拿嗎？

Yeah. Hey, Mitch. Good morning. Yeah. So the lease termination income was a result of negotiated termination settlement with one of our tenants in the Fresno building. The puts really is driven by that. And then as well as our leasing efforts that are taking place in the fourth quarter and the third quarter of leases that we signed in the prior year and the prior quarter as well for the [free rent bridging] now coming to an end.

是的。嘿，米奇。早安.是的。因此，這筆租賃終止收入是與我們在弗雷斯諾大樓的一位租戶協商達成的終止協議的結果。賣盤確實受此驅動。此外，我們在第四季度和第三季度進行的租賃工作，以及我們在上一年和上一季度簽署的租賃合同，還有即將結束的[免租過渡期]。

And then from an interest perspective, our interest rates are coming down. And so we're not paying as much interest expense. So we believe that that also helped us in the fourth quarter.

從利率角度來看，我們的利率正在下降。因此，我們支付的利息支出減少了。所以我們相信這也有助於我們在第四季取得好成績。

Okay. Your leasing pipeline went down quarter over quarter. Does any of that have to do with some execution? Obviously, a little bit of a smaller portfolio as well. Is there anything that we should be thinking about behind that with regards to demand?

好的。您的租賃業務量較上季下降。這和執行方面有什麼關係嗎？顯然，投資組合的規模也略小。關於需求方面，我們是否應該考慮背後的其他因素？

Well, I think it's a couple of things, Mitch. The answer is no on the demand scale. We've seen continued improved demand for our properties. So we feel pretty good about that. Some of it is exactly what you just mentioned. That is some of the properties that we talked about on the last call that were sort of in the pipeline have now -- we've now got leases signed up.

嗯，我覺得有兩方面的原因，米奇。從需求層面來看，答案是否定的。我們看到市場對我們房產的需求持續成長。所以我們對此感覺相當不錯。有些情況正如你剛才提到的。那是我們上次電話會議中討論過的一些正在籌備中的房產，現在我們已經簽訂了租賃合約。

And I think the second thing is -- that's a little different -- is we have less rollover coming next year. So we have a somewhat smaller portfolio. We've been selling vacancy, and we have less expected vacancies for next year. So all that combines to probably shrinking the pipeline slightly. But the pipeline we do have, we feel pretty good about.

我認為第二點是——這有點不同——明年我們將面臨更少的結轉。所以我們投資組合的規模相對較小。我們一直在出售空置房源，並且預計明年的空置房源將會減少。因此，所有這些因素加在一起可能會導致管道略微縮減。但我們對現有的輸油管感到非常滿意。

Got you. Last one for me. You did one acquisition last year. Obviously, you want to change the composition of the types of assets that you're owning over time. It's not going to be an overnight thing.

抓到你了。這是我最後一個了。你去年完成了一項收購。顯然，隨著時間的推移，你希望改變你所擁有的資產類型的組成。這不會是一朝一夕就能完成的事。

Curious about the pipeline of deals, are you seeing deals? And is pricing and demand what could be slowing your ability to acquire here? Maybe just provide some perspective, please?

我很想了解一下交易進度，你們那邊有交易嗎？價格和需求是否是阻礙您在此地收購的因素？能否提供一些不同的視角？

Yeah. Well, I think that on the first -- on the last part, we are seeing a pretty strong pipeline of potential transactions. Of course, we are highly sensitive to a number of factors, pricing being probably the biggest one, of course.

是的。嗯，我認為在第一部分——最後一部分——我們看到了相當強勁的潛在交易管道。當然，我們對許多因素都非常敏感，價格無疑是其中最重要的因素。

But then, of course, it's property location and lease duration. So it's a little like Goldilocks. We kind of got to find the right temperature for the acquisition that we're looking for. But we do see some good transactions.

當然，房產位置和租賃期限也是需要考慮的因素。這有點像金髮女孩的故事。我們需要找到適合我們想要收購的目標的合適時機。但我們確實看到了一些不錯的交易。

We're being highly selective. But we do think it makes sense for us to recycle some of this capital into new assets with long-duration WALTs and with higher-quality cash flows. We're just not going to do it willy-nilly. We're going to be highly selective. We expect to add some assets in the next 12 months, but it will not be -- it will be a relatively modest number.

我們擇優錄取。但我們認為，將部分資金再投資於具有較長期限的加權平均長期資產和更高品質現金流的新資產是合理的。我們不會隨意行事。我們將嚴格篩選。我們預計未來 12 個月內會增加一些資產，但數量不會很多——數量會相對較少。

Great. Thank very much, guys.

偉大的。非常感謝各位。

Thank you, Mitch.

謝謝你，米奇。

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

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麥克道爾先生，請他作最後的總結發言。

Thank you, all, for joining us today. And we look forward to further updating you in the months and quarters ahead. Thank you. Goodbye.

感謝各位今天蒞臨。我們期待在未來的幾個月和幾個季度中繼續向您報告最新情況。謝謝。再見。

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

謝謝。今天的電話會議到此結束。您可以在此時斷開線路。感謝您的參與。