Office Properties Income Trust (OPI) 2018 Q3 法說會逐字稿

Good morning, and welcome to the Government Properties Trust Third Quarter 2018 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加政府地產信託 2018 年第三季財務業績電話會議。（操作員說明）請注意，正在記錄此事件。

I'd now like to turn the conference over to Brad Shepherd, Senior Director of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係高級總監布拉德·謝潑德 (Brad Shepherd)。請繼續。

Thank you, welcome to Government Properties Income Trust call covering the third quarter 2018 results. Joining me on today's call are David Blackman, President and Chief Executive Officer; and Mark Kleifges, Chief Financial Officer.

謝謝，歡迎參加政府財產收入信託電話會議，以了解 2018 年第三季的業績。與我一起參加今天電話會議的還有總裁兼執行長 David Blackman；和財務長馬克‧克萊夫格斯 (Mark Kleifges)。

In addition, we are joined by Jeff Leer, who has been appointed as Chief Financial Officer and Treasurer, effective January 1, 2019.

此外，Jeff Leer 也加入了我們的行列，他已被任命為財務長兼財務主管，自 2019 年 1 月 1 日起生效。

Today's call includes a presentation by management, followed by a question-and-answer session with analysts. I would like to note that the transcription, recording and retransmission of today's conference call, without the prior written consent of GOV, are strictly prohibited.

今天的電話會議包括管理層的演講，隨後是分析師的問答環節。我想指出的是，未經政府事先書面同意，嚴禁對今天的電話會議進行轉錄、錄音和轉發。

Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon GOV's present beliefs and expectations as of today, Thursday, November 1, 2018. And actual results may differ materially from those projected in any forward-looking statements.

今天的電話會議包含 1995 年《私人證券訴訟改革法案》和其他證券法含義內的前瞻性陳述。這些前瞻性陳述是基於截至今天（2018 年 11 月 1 日星期四）GOV 目前的信念和期望。實際結果可能與任何前瞻性陳述中預測的結果有重大差異。

GOV undertakes no obligation to revise or publicly release the result of any revision to forward-looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission or SEC, which can be accessed on GOV's website at www.govreit.com, or the SEC's website. Investors are cautioned not to place undue reliance upon any forward-looking statements.

GOV 沒有義務修改或公開發布今天電話會議中前瞻性陳述的任何修改結果。有關可能導致這些差異的因素的更多資​​訊包含在我們向美國證券交易委員會或 SEC 提交的文件中，您可以在 GOV 網站 www.govreit.com 或 SEC 網站上存取該文件。投資者應注意不要過度依賴任何前瞻性陳述。

In addition, this call may contain non-GAAP numbers including normalized funds from operations or normalized FFO, and cash based net operating income or cash basis NOI. Reconciliations of net income attributable to common shareholders to these non-GAAP figures, and the components to calculate them are available in our supplemental operating and financial data package found on GOV's website.

此外，本次電話會議可能包含非 GAAP 數據，包括標準化營運資金或標準化 FFO，以及以現金為基礎的淨營業收入或以現金為基礎的 NOI。在 GOV 網站上找到的補充營運和財務資料包中找到歸屬於普通股股東的淨利潤與這些非 GAAP 資料的調整表以及計算這些資料的組成部分。

I'd now like to turn the call over to David.

我現在想把電話轉給大衛。

Thank you, Brad, and good morning. On today's call, I will review our quarterly leasing activity, discuss tenants at risk or expected to vacate, provide an update in our disposition activity and discuss the proposed merger with Select Income REIT before turning the call over to Mark to review our financial results and balance sheet.

謝謝你，布拉德，早安。在今天的電話會議上，我將審查我們的季度租賃活動，討論面臨風險或預計搬出的租戶，提供我們處置活動的最新信息，並討論與Select Income REIT 的擬議合併，然後再將電話轉交給Mark審查我們的財務表現和資產負債表。

For the third quarter of 2018, Government Properties Income Trust executed 182,000 square feet of new and renewal leases for a 40 basis point roll down in rent, a weighted average lease term of 8.1 years, and leasing concessions and capital commitments of $4.41 per square foot per lease year.

2018年第三季度，政府地產收入信託簽署了182,000平方英尺的新租約和續租租約，租金下調了40個基點，加權平均租期為8.1年，租賃優惠和資本承諾為每平方英尺4.41美元每平方英尺4.41美元個租賃年。

While our leasing volume with government tenants was low, we are pleased to report that the trend for 10-year and longer lease renewals continues.

雖然我們與政府租戶的租賃量較低，但我們很高興地報告，10 年及更長租約續約的趨勢仍在繼續。

During the quarter, we executed 18,000 square feet in 2 separate leases for a weighted average lease term of 19.7 years.

本季度，我們簽署了 2 份獨立租賃合同，面積為 18,000 平方英尺，加權平均租賃期限為 19.7 年。

GOV also continues to have a strong leasing pipeline, excluding the properties held for sale, we have over 2 million square feet of active deals. This includes more than 766,000 square feet of potential new leases, of which almost 300,000 square feet would absorb vacant space in our buildings.

GOV 也繼續擁有強大的租賃管道，不包括待售物業，我們擁有超過 200 萬平方英尺的活躍交易。這包括超過 766,000 平方英尺的潛在新租賃，其中近 300,000 平方英尺將吸收我們建築物的空置空間。

Now let's review leases at risk for renewal for the next 12 months. As of September 30, and excluding properties held for sale, GOV had leases contributing 17.6% of annualized rent that are subject to expiration during the next 12 months. Of these expirations, we expect tenants contributing 3.2% of GOV's annualized rent to vacate at lease expiration.

現在讓我們回顧一下未來 12 個月有續約風險的租約。截至 9 月 30 日，不包括待售物業，GOV 的租賃佔年化租金的 17.6%，且將在未來 12 個月內到期。在這些到期的租約中，我們預計貢獻 GOV 年化租金 3.2% 的租戶將在租約到期時搬出。

This is an increase of 127 basis points from the previous quarter after adjusting 39 basis points for tenants that vacated as expected, and 166 basis points for newly identified tenants we expect to vacate, which includes transitioning tenants from our at-risk category this quarter.

在對按預期騰出的租戶調整了39 個基點，對我們預計將騰出的新確定租戶調整了166 個基點後，這一數字比上一季度增加了127 個基點，其中包括本季度從我們的風險類別中過渡的租戶。

Five government agencies contribute 44% of the aggregate annualized rent expected to vacate, with 2 agencies contributing the vast majority of the government total. These 2 agencies are the Department of Justice in Washington D.C. and the EPA in Golden, Colorado, both of which have been previously disclosed. The DOJ vacated in October, and the GSA continues to explore options to absorb this space for at least the next 12 months in order to retain control of the building security.

五個政府機構貢獻了預計騰出的年化租金總額的 44%，其中 2 個機構貢獻了政府總額的絕大多數。這兩個機構是華盛頓特區的司法部和科羅拉多州戈爾登的環保局，這兩個機構先前都已披露。DOJ 於 10 月撤離，GSA 至少在未來 12 個月內繼續探索吸收該空間的方案，以保留對大樓安全的控制。

The EPA is expected to relocate to the Denver Federal Center by year-end, and we have begun marketing the building for sale.

EPA 預計將在年底前搬遷至丹佛聯邦中心，我們已開始推銷該建築。

In addition to the tenants we have identified as vacating, we have identified tenants that contribute 271 basis points of GOV's annualized rent to be at risk of downsizing or vacating over the next 12 months. This is a 181 basis point increase from the previous quarter after adjusting 40 basis points of annualized rent that was transferred to the vacate category, 8 basis points of annualized rent for tenants now projected to renew, and 230 basis points for 3 government tenants added to the category this quarter.

除了我們確定要騰出的租戶外，我們還確定貢獻 GOV 年化租金 271 個基點的租戶在未來 12 個月內面臨縮小規模或騰出的風險。調整了轉入騰出類別的年化租金40 個基點、現在預計續租的租戶的年化租金8 個基點以及3 個政府租戶的年化租金增加了230 個基點後，這比上一季度增長了181 個基點。本季的類別。

The largest at-risk tenant contributes approximately 200 basis points of our annualized rents, is the U.S. government and is new to the at-risk category this quarter. The remainder of the at-risk tenants are small with no one tenant contributing more than 40 basis points to GOV's annualized rent.

最大的風險租戶是美國政府，為我們的年化租金貢獻了約 200 個基點，並且是本季新加入的風險類別。其餘面臨風險的租戶規模較小，沒有一個租戶對 GOV 年化租金的貢獻超過 40 個基點。

This forward perspective into GOV's lease expiration schedule is the best information we have available today, based upon our dialogue with tenants. Lease negotiations are fluid and circumstances can change. However, tenant retention and attracting new tenants to our buildings remain a significant area of focus for GOV.

根據我們與租戶的對話，對 GOV 租約到期時間表的前瞻性看法是我們今天掌握的最佳資訊。租賃談判是不穩定的，情況可能會改變。然而，保留租戶和吸引新租戶入住我們的建築仍然是政府關注的重要領域。

Now let's turn to our property disposition activity. We did not close any property sales during the third quarter. However, we did enter agreements to sell a property in Washington D.C. for $70 million, and a 1.6 million square foot portfolio in suburban Metro D.C. for $201.5 million. In October, we also entered an agreement to sell another 1.6 million square foot portfolio in suburban Southern Virginia for $167 million. These are the buildings we have classified as held-for-sale.

現在讓我們轉向我們的財產處置活動。第三季我們沒有完成任何房地產銷售。然而，我們確實簽訂了協議，以 7000 萬美元的價格出售華盛頓特區的一處房產，並以 2.015 億美元的價格出售華盛頓特區郊區的一處 160 萬平方英尺的投資組合。10 月份，我們還簽訂了一項協議，以 1.67 億美元的價格出售位於維吉尼亞州南部郊區的另外 160 萬平方英尺的投資組合。這些是我們歸類為待售的建築物。

Assuming these 3 sales close as expected, GOV will have completed $590 million of property sales since the acquisition of First Potomac and will have met the guidance we provided for using asset sales to permanently finance the acquisition.

假設這 3 筆銷售按預期完成，自收購 First Potomac 以來，GOV 將完成 5.9 億美元的房地產銷售，並將滿足我們提供的使用資產銷售為收購提供永久融資的指導。

Turning to the merger plan. There is a fair amount of information available to the public regarding the pending combination with SIR, including our joint investor presentation from the announcement on September 17, and the First Amendment to the preliminary joint proxy filed with the SEC on October 26. So rather than rehashing the information that has already been disclosed, I'm going to provide an overview of the combined company, summarize accomplishments since the announcement and outline the principal reasons why we believe the merger should be supported by GOV's shareholders.

轉向合併計劃。關於與 SIR 的待決合併，公眾可獲得大量信息，包括我們 9 月 17 日公告中的聯合投資者陳述，以及 10 月 26 日向 SEC 提交的初步聯合委託書第一修正案。因此，我不會重複已經披露的信息，而是將概述合併後的公司，總結自宣布以來取得的成就，並概述我們認為合併應該得到 GOV 股東支持的主要原因。

The merger will combine SIR with GOV to form what we believe to be a leading national office REIT with increased scale, enhanced tenant and geographic diversification, a well-laddered lease expiration schedule, a broader investment strategy and a company with one of the highest percentages of rent paid by investment grade rated tenants in the office sector.

此次合併將SIR 與GOV 合併，形成我們認為領先的全國辦公室房地產投資信託基金，其規模擴大、租戶和地域多元化、階梯式租賃到期時間表、更廣泛的投資策略以及百分比最高的公司之一辦公大樓投資等級租戶支付的租金。

GOV will be the surviving entity and will change its name to Office Properties Income Trust, or OPI, upon closing the merger.

GOV 將成為存續實體，並在合併完成後更名為 Office Properties Income Trust（OPI）。

On a pro forma basis, as of September 30, 2018, the combined company will own 213 buildings containing 30.2 million square feet, located in 38 states in the District of Columbia that will be 92% occupied with a weighted average remaining lease term of 5.8 years.

根據預計，截至 2018 年 9 月 30 日，合併後的公司將擁有 213 棟建築，面積 3020 萬平方英尺，分佈在哥倫比亞特區 38 個州，其中 92% 的入住率，加權平均剩餘租賃期為 5.8 年年。

Approximately 66% of the company's annualized rent will be paid by investment grade rated tenants, and only 29% of our annualized rent will expire between 2018 and 2021. The combined company is expected to pay a dividend based upon 75% of cash available for distribution, which is estimated to be between $0.50 and $0.60 per share per annum and which is also expected to provide the combined company with greater financial flexibility and a greater ability to increase the dividend over time. The investment strategy for the combined company will focus on office properties in highly desirable markets that have strong economic fundamentals to support growth. We expect to acquire both single-tenant buildings and multi-tenant buildings. Single-tenant building acquisitions will be for properties that are strategic to tenants and will include build to suit properties, corporate headquarters and buildings where tenants have invested meaningful capital. They will also need to have a minimum remaining lease term of 7 years.

公司約66%的年化租金將由投資等級評級租戶支付，只有29%的年化租金將在2018年至2021年期間到期。合併後的公司預計將根據可用於分配的現金的75% 支付股息，預計每年每股0.50 美元至0.60 美元之間，預計這也將為合併後的公司提供更大的財務靈活性和更強的能力隨著時間的推移增加股息。合併後公司的投資策略將重點放在具有強勁經濟基礎以支持成長的高度理想市場的辦公物業。我們預計將收購單租戶建築和多租戶建築。單一租戶建築收購將針對對租戶具有戰略意義的物業，包括為適應物業、公司總部和租戶投入大量資本的建築物而建造的物業。他們還需要有至少 7 年的剩餘租賃期。

Multi-tenant building acquisitions will be buildings primarily leased to government tenants and for government agencies with high security requirements or where the agency's mission is strategic to the building's location. We also expect to focus primarily on first-generation buildings where we believe getting at least one tenant renewal is more likely and where ongoing capital needs will be more modest.

多租戶建築收購將主要出租給政府租戶和具有高安全要求的政府機構或機構的使命對建築位置具有戰略意義的建築。我們也預計將主要關注第一代建築，我們認為這些建築更有可能獲得至少一個租戶續約，並且持續的資本需求將更加溫和。

A key component of our investment strategy will be the implementation of a capital recycling program, in which the company expects to prune between $100 million and $300 million of properties annually to reinvest in properties that are expected to improve the average age of our portfolio, the weighted average remaining lease term and tenant retention prospects, and to manage ongoing capital requirements. This is also expected to create accretion to cash available for distribution over time.

我們投資策略的關鍵組成部分將是實施資本回收計劃，在該計劃中，公司預計每年削減 1 億至 3 億美元的房產，以重新投資於預計將提高我們投資組合平均壽命的房產，加權平均剩餘租賃期限和租戶保留前景，並管理持續的資本需求。隨著時間的推移，預計這還將增加可供分配的現金。

Now a quick review of what we've accomplished since the merger announcement, and what is expected to occur as we approach the merger closing. On October 9, we sold all our 224.9 million common shares of SIR and used the net proceeds of approximately for $435 million to repay outstanding debt.

現在快速回顧一下自宣布合併以來我們所取得的成就，以及當我們接近合併結束時預計會發生什麼。10 月 9 日，我們出售了全部 2.249 億股 SIR 普通股，並將所得淨收益約 4.35 億美元用於償還未償債務。

On October 26, a First Amendment to the preliminary proxy was filed to address comments received from the SEC. Once the proxy is declared effective, we will set a shareholder meeting date for GOV's shareholders to approve the issuance of shares to SIR shareholders. The threshold for this approval is an affirmative vote by a majority of votes cast at the shareholder meeting. We expect the merger will close by December 31, 2018.

10 月 26 日，初步委託書第一修正案被提交，以回應 SEC 提出的意見。一旦代理宣布生效，我們將為 GOV 股東設定股東大會日期，以批准向 SIR 股東發行股票。此批准的門檻是股東大會上多數票贊成。我們預計合併將於 2018 年 12 月 31 日完成。

There are numerous reasons why we believe the combination of GOV and SIR is in the best interest of GOV to include the enhanced portfolio characteristics of the combined company that I've already discussed. However, we believe, the most important reasons are that the combination is expected to be significantly accretive to GOV's cash available for distribution and that GOV's shareholders will receive a significantly higher dividend from the combined company than what GOV's shareholders would expect to receive if the merger does not occur.

我們有許多理由相信 GOV 和 SIR 的合併符合 GOV 的最佳利益，包括我已經討論過的合併後公司增強的投資組合特徵。然而，我們認為，最重要的原因是，合併預計將顯著增加 GOV 的可分配現金，而 GOV 的股東將從合併後的公司獲得的股息明顯高於 GOV 股東在合併後獲得的股息。不會發生。

I'll now turn the call over to Mark, to review financial results and the balance sheet.

我現在將電話轉給馬克，以審查財務表現和資產負債表。

Thanks, David. Let's begin with the review of our property level performance for the third quarter of 2018.

謝謝，大衛。讓我們先回顧一下我們 2018 年第三季的房地產業績。

In the third quarter, GOV's consolidated cash net operating income or cash basis NOI, increased by $22.3 million or approximately 55%, compared to the same quarter last year. While most of this increase was due to the First Potomac acquisition, our legacy properties also contributed to this quarter's cash basis NOI growth.

第三季度，GOV 的綜合現金淨營業收入或現金基礎 NOI 與去年同期相比增加了 2,230 萬美元，約 55%。雖然這一成長大部分歸因於 First Potomac 收購，但我們的遺留資產也為本季現金基礎 NOI 的成長做出了貢獻。

On a same property basis, third quarter cash NOI increased $771,000 or 2%. Same property cash rental income increased approximately $1.1 million or 1.6%, compared to the third quarter last year, while same property operating expenses increased $287,000 or 1%. Our same property cash basis NOI margin was 58.4% in the third quarter. Although same property occupancy decreased by 80 basis points to 94.6% at quarter end, we were able to achieve same property cash NOI growth as a result of the impact of rent increases from recent lease renewals, the burn-off of free rent concessions for certain leases, and only modest expense growth.

在相同的房地產基礎上，第三季現金 NOI 增加了 771,000 美元，即 2%。與去年第三季相比，同一房產現金租金收入增加了約 110 萬美元，即 1.6%，而同一房產營運支出增加了 287,000 美元，即 1%。第三季度，我們相同的房地產現金基礎 NOI 利潤率為 58.4%。儘管季末同房入住率下降 80 個基點至 94.6%，但由於最近續租帶來的租金上漲、某些情況下免費租金優惠的消失等影響，我們仍能實現同房現金 NOI 增長。租賃，費用僅小幅成長。

Turning to our consolidated financial results. Normalized FFO for the third quarter was $53 million, which is up 33.7% from $39.6 million for the 2017 third quarter. This increase was primarily the result of the FPO acquisition, which closed in October 2017.

轉向我們的綜合財務表現。第三季標準化 FFO 為 5,300 萬美元，比 2017 年第三季的 3,960 萬美元成長 33.7%。這一成長主要是 FPO 收購的結果，該收購於 2017 年 10 月完成。

Normalized FFO per share for the 2018 third quarter was $0.53, which is up $0.12 from the 2017 third quarter. Normalized FFO per share was favorably impacted this quarter by the timing around capital raising activities in the third quarter of last year, when GOV issued 27.9 million common shares to pre-fund a portion of the FPO acquisition, which did not close until the subsequent quarter.

2018 年第三季標準化 FFO 每股為 0.53 美元，比 2017 年第三季成長 0.12 美元。正常化的 FFO 每股受到去年第三季融資活動時機的有利影響，當時 GOV 發行了 2,790 萬股普通股，為 FPO 收購的一部分提供資金，該收購直到下個季度才完成。

G&A expense for the third quarter was $22.4 million, which is up $19 million from the 2017 third quarter. G&A expense in the third quarter includes $16.2 million of incentive management fee expense accrued in the quarter, based on the outperformance of GOV's common shares versus the benchmark index from January 1, 2016 through the end of the third quarter. This expense accrual is not included in the calculation of our third quarter normalized FFO.

第三季的一般管理費用為 2,240 萬美元，比 2017 年第三季增加 1,900 萬美元。第三季的一般管理費用包括本季應計的 1,620 萬美元激勵管理費費用，這是根據 2016 年 1 月 1 日至第三季末 GOV 普通股相對於基準指數的表現得出的。此應計費用未包含在我們第三季標準化 FFO 的計算中。

As a reminder, the ending share price used to calculate total return for the incentive fee is based on the highest tenth consecutive day average closing price over the final 30 days of the measurement period. This methodology had the effect of excluding the drop in GOV's share price following the announcement of the potential merger with SIR in the quarter-end calculation.

需要提醒的是，用於計算激勵費用總回報的期末股價是根據衡量期間最後 30 天連續第十天最高平均收盤價計算的。這種方法在季末計算中排除了宣布與 SIR 可能合併後 GOV 股價下跌的影響。

As calculated as of October 31, there is no incentive fee payable by GOV for 2018.

截至10月31日計算，2018年GOV無需繳交獎勵費。

Turning to capital expenditures and the balance sheet. In the 2018 third quarter, we spent $6.7 million on recurring building improvements and $4.1 million on tenant improvements and leasing costs. As of quarter-end, we had approximately $34 million of unspent leasing-related capital obligations.

轉向資本支出和資產負債表。2018 年第三季度，我們在經常性建築改善上花費了 670 萬美元，在租戶改善和租賃成本上花費了 410 萬美元。截至季末，我們有約 3,400 萬美元的未動用租賃相關資本義務。

At September 30, GOV's ratio of debt to total gross assets was 56.1%. And for the quarter, debt-to-annualized adjusted EBITDA was 7.3x. Pro forma for the repayment of debt with proceeds from the sale of our investment in SIR common shares and the 20 properties under contract for sale, debt to total gross assets was 43.2% and debt to annualized adjusted EBITDA was 6.4x for the quarter.

截至9月30日，GOV債務佔總資產的比例為56.1%。本季的債務與年化調整後 EBITDA 比率為 7.3 倍。預計以出售我們對 SIR 普通股的投資和出售合約下的 20 處房產的收益償還債務，本季債務佔總資產的比例為 43.2%，債務佔年化調整後 EBITDA 的比例為 6.4 倍。

Operator, that concludes our prepared remarks. We're ready to open up the call for questions.

接線員，我們準備好的發言到此結束。我們已準備好開始提問。

(Operator Instructions) And the first question comes from Bryan Maher with B. Riley FBR.

（操作員說明）第一個問題來自 Bryan Maher 和 B. Riley FBR。

Quick question on the sales asset outlook for 2019. Has that changed at all as it relates to what you're looking to market in 2019? And are you seeing any change in cap rates when you have discussions with potential buyers?

關於 2019 年銷售資產前景的快速問題。與您希望在 2019 年推向市場的產品相關，這種情況是否發生了變化？當您與潛在買家討論時，您是否發現資本化率有任何變化？

Sure Bryan, good question. We've spent a fair amount of time looking at the assets we identified for sale in 2019 as part of the merger. And it began the process of getting broker opinions of value and marketing plans, so we can be prepared to hit the market in early 2019. We haven't really seen any change at this point in terms of cap rate expectations. Definitely, on the acquisition side, we are seeing assets continue to trade at relatively low cap rates, and there has been no increase in cap rates as rates have increased. I don't know that it's sustainable, but as of today, we're not seeing a change in pricing.

當然，布萊恩，好問題。我們花了相當多的時間來研究我們確定在 2019 年作為合併一部分出售的資產。它開始了獲取經紀人的價值意見和行銷計劃的過程，因此我們可以準備在 2019 年初進入市場。目前我們還沒有真正看到上限利率預期有任何變化。當然，在收購方面，我們看到資產繼續以相對較低的資本化率進行交易，而且資本化率並沒有隨著利率的上升而增加。我不知道它是否可持續，但截至今天，我們沒有看到定價改變。

And can you share with us the cap rates achieved on the assets that are pending closing? Or do you prefer to wait till they close?

您能否與我們分享一下待交割資產所達到的上限利率？還是您更願意等到他們關門？

Yes, Bryan. We typically wait until they close. So we should be able to do that at year-end's earnings announcement.

是的，布萊恩。我們通常會等到他們關門。因此，我們應該能夠在年底的收益公告中做到這一點。

And then as it relates to the vacate properties, there seems to be a couple of new ones in there from the government. What kind of reasoning are they giving you on the vacates?

然後，就騰出的房產而言，似乎有一些政府提供的新房產。他們對於休假給你什麼樣的理由？

Another good question, Bryan. You don't always get a reason. We added a relatively large lease to the at-risk category this quarter. And it's really -- we added it to the at-risk, because it's really unclear as to whether or not they're going to renew or not. We -- I think, there's still a chance that we can renew them or another government agency in that place. But we would rather be conservative in how we look at that. When I look at the at-risk report, substantially, all the tenants that we've identified at-risk are potential downsizing. And so we're still seeing a little bit of an effect from the increase in utilization rates. And a couple of buildings where we may have had the GSA under a single lease, but there were 5 or 6 agencies that were occupying space in the building, and we're now breaking them out into individual leases.

另一個好問題，布萊恩。你並不總是能找到理由。本季我們在風險類別中增加了相對較大的租賃。我們確實將其添加到了風險中，因為目前還不清楚他們是否會續約。我認為，我們仍然有機會更新它們或該地方的其他政府機構。但我們寧願保守地看待這一點。當我查看風險報告時，基本上，我們發現的所有有風險的租戶都可能縮小規模。因此，我們仍然看到利用率增加帶來的一些影響。還有幾棟大樓，我們可能在單一租約下讓 GSA 擁有，但有 5 或 6 個機構佔用了大樓內的空間，我們現在將它們分解為單獨的租約。

And then lastly for me. How should we think about the next couple of weeks as we approach a vote on GOV and SIR? I mean, it would seem that the SIR votes are effectively in the bag with you guys controlling 30% of that vote. But we're increasingly getting calls from GOV shareholders, asking the prospect for the vote on the GOV side to not go through. So how are you thinking about that? And how are you planning on marketing this deal to investors over the next several weeks?

最後對我來說。當我們即將對 GOV 和 SIR 進行投票時，我們應該如何考慮接下來的幾週？我的意思是，看起來 SIR 的選票實際上已經落入囊中，你們控制著 30% 的選票。但我們越來越多接到政府股東的電話，要求政府方面不要進行投票。那麼你對此有何看法？您計劃在接下來的幾週內如何向投資者推銷這筆交易？

Sure, it's another good question, Bryan. We have a high degree of confidence that we will get the shareholder vote for both GOV and for SIR. Quickly, the threshold for the SIR vote is 50% of outstanding shares, of which GOV and insiders control about 30% of those shares. So we're pretty well positioned as it relates to SIR. On the GOV side, it's 50% of votes cast at the shareholder meeting. So we obviously have to get a quorum. But the threshold there is much lower. And if you look at GOV's top 10 shareholders, they control almost 50% of outstanding shares. So our expectation is that once Glass Lewis and ISS publish, which will be after we set a shareholder meeting date, we will reach out to our top investors and begin to have conversations. Because most of them really won't focus until such time as ISS and Glass Lewis publish. So I think we're pretty well positioned on both sides, Bryan. And again, we are highly confident that we will get the vote on both sides.

當然，這是另一個好問題，布萊恩。我們非常有信心獲得股東對 GOV 和 SIR 的投票。很快，SIR投票的門檻是流通股的50%，其中GOV和內部人士控制著約30%的股份。因此，我們在 SIR 方面處於有利地位。在政府方面，股東會上的投票率為50%。所以我們顯然必須達到法定人數。但那裡的門檻要低得多。如果你看看 GOV 的前 10 名股東，他們控制著近 50% 的流通股。因此，我們的期望是，一旦 Glass Lewis 和 ISS 發布，即在我們設定股東會議日期之後，我們將聯繫我們的頂級投資者並開始對話。因為他們中的大多數人在國際太空站和格拉斯·劉易斯發表之前確實不會集中精力。所以我認為我們雙方都處於有利位置，布萊恩。再說一遍，我們非常有信心獲得雙方的投票。

And the next question comes from Adam Gabalski with Morgan Stanley.

下一個問題來自摩根士丹利的 Adam Gabalski。

I just had a quick question on some data in the proxy statement. It looks like in the financial prospects for a standalone GOV, in 2019 and 2020, there's some pretty significant CapEx spending built in there. I was just wondering if you could talk a little bit about where that money is going and what your thoughts are around that capital allocation.

我只是對委託聲明中的一些數據有一個簡單的問題。從獨立政府的財務前景來看，2019 年和 2020 年的資本支出支出相當可觀。我只是想知道您是否可以談談這筆錢的去向以及您對資本配置的想法。

Well, Adam, a lot of that capital is leasing capital. And it obviously, has a lot to do with our continued leasing velocity, which has been strong. And as you can see during the quarter, our capital ticked up a little bit at $4.41 per square foot per lease year. Now that's not necessarily what all leases are going to be at, but as we are seeing with the U.S. government, the trend is to do longer duration leases. So this quarter, we had almost a 20-year weighted average remaining lease term for the leases executed. And that has an impact on capital. So that combined with the fact that just the volume of leases that are expiring in 2019 and the $34 million of capital that we have committed, but is unspent, is really what's driving that. Does that make sense?

嗯，亞當，很多資本都是租賃資本。顯然，這與我們持續強勁的租賃速度有很大關係。正如您在本季所看到的，我們的資本略有增加，達到每租賃年每平方英尺 4.41 美元。現在不一定是所有租賃都會如此，但正如我們在美國政府看到的那樣，趨勢是進行更長期限的租賃。因此，本季度，我們所執行的租賃的加權平均剩餘租賃期約為 20 年。這對資本有影響。因此，再加上 2019 年即將到期的租賃量以及我們已承諾但尚未使用的 3,400 萬美元資本，才是真正推動這一趨勢的因素。那有意義嗎？

Yes, absolutely. I appreciate the color there. And then just on the mark-to-market on leasing for non-government tenants this quarter was pretty much flat. I was just, sort of, wondering where you, kind of, see that tracking into the leasing that's coming up in '20 -- 4Q '18, early '19? And what you, kind of, estimate that embedded mark-to-market is within the current portfolio?

是的，一點沒錯。我很欣賞那裡的顏色。然後，本季非政府租戶的以市價計算的租賃量幾乎持平。我只是想知道你在哪裡看到了 20 年 20 世紀 4 季 18 年 19 年初即將出現的租賃追蹤情況？您估計目前投資組合中嵌入的以市價計價是怎樣的？

Yes. It's -- honestly, the experience that we've had with our non-government tenants has been more roll downs in rent, I mean, if you look over the last 4 quarters, we've had more roll downs than roll ups. I think, in the Q, which we typically discuss our expectation for the next 12 months, we think it's flat to slightly down.

是的。老實說，我們與非政府租戶的經驗是租金下降更多，我的意思是，如果你看看過去 4 個季度，我們的下降比上升更多。我認為，在我們通常討論對未來 12 個月的預期的 Q 中，我們認為它持平甚至略有下降。

And this is the end of the question-and-answer session, so I would like to return the floor to David Blackman, for any closing comments.

問答環節到此結束，所以我想請大衛布萊克曼（David Blackman）發言，以徵求結束意見。

Thank you. Before concluding today's call, I'd like to take a moment to congratulate Mark on his retirement and thank him for as many years of service at RMR, and for his contributions to our managed companies. Mark's expertise and contributions have been essential to RMR's growth and success. Mark, you've been a great partner and a trusted adviser. I think, I speak for everyone at RMR in wishing you a joyful retirement.

謝謝。在結束今天的電話會議之前，我想花點時間祝賀 Mark 退休，並感謝他多年來在 RMR 的服務以及對我們管理的公司的貢獻。Mark 的專業知識和貢獻對於 RMR 的成長和成功至關重要。馬克，你一直是一位出色的合作夥伴和值得信賴的顧問。我想，我代表 RMR 的每個人祝福你們退休後生活愉快。

Operator, that concludes our call.

接線員，我們的通話結束了。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。