Office Properties Income Trust (OPI) 2019 Q2 法說會逐字稿

Good morning, and welcome to the Office Properties Income Trust Second Quarter 2019 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Olivia Snyder, Manager of Investor Relations. Please go ahead,.

早安，歡迎參加辦公室地產收入信託 2019 年第二季財務業績電話會議。（操作員說明）請注意，正在記錄此事件。我現在想將會議交給投資者關係經理 Olivia Snyder。請繼續，。

Thank you, and good morning, everyone. Thanks for joining us today. With me on the call are OPI's President and Chief Executive Officer, David Blackman; Chief Financial Officer and Treasurer, Matt Brown; and Vice President, Chris Bilotto. In just a moment, they will provide details about our business and our performance for the second quarter of 2019. We will then open the call for a question-and-answer session with sell-side analysts. First, I would like to note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the company. Also note that 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 on OPI's beliefs and expectations as of today, Friday, August 2, 2019, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the 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 from our website, opireit.com, or the SEC's website. Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, we will be discussing non-GAAP numbers during this call, including normalized funds from operations, or normalized FFO, and cash basis and net operating income, or cash-based NOI. A reconciliation of these non-GAAP figures to net income and the components to calculate cash available for distribution, or CAD, are available in our supplemental operating and financial data package, which also can be found on our website. And now I will turn the call over to David.

謝謝大家，大家早安。感謝您今天加入我們。與我一起參加電話會議的有 OPI 總裁兼執行長 David Blackman；財務長兼財務主管馬特布朗；和副總裁克里斯·比洛托。稍後，他們將提供有關我們 2019 年第二季業務和業績的詳細資訊。然後，我們將開始與賣方分析師進行問答環節。首先，我想指出的是，未經公司事先書面同意，禁止對今天的電話會議進行錄音和轉播。另請注意，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。這些前瞻性聲明是基於 OPI 截至今天（2019 年 8 月 2 日星期五）的信念和預期，實際結果可能與我們的預測有重大差異。該公司不承擔修改或公開發布對今天電話會議中前瞻性陳述的任何修改結果的義務。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 (SEC) 提交的文件中，您可以從我們的網站 opireit.com 或 SEC 網站存取該文件。投資者應注意不要過度依賴任何前瞻性陳述。此外，我們將在本次電話會議中討論非 GAAP 數據，包括標準化營運資金（或標準化 FFO）以及現金基礎和淨營業收入（或基於現金的 NOI）。我們的補充營運和財務資料包中提供了這些非 GAAP 資料與淨利潤的對帳以及計算可分配現金（或 CAD）的組成部分，這些資料包也可以在我們的網站上找到。現在我將把電話轉給大衛。

Thank you, Olivia, and good morning. Welcome to the second quarter earnings call for Office Properties Income Trust. On today's call, I will provide an update on our investment activity. Chris Bilotto will review our quarterly leasing activity and operating statistics while Matt Brown will review our financial results, balance sheet and capital needs. As many of you may recall, OPI completed its deleveraging plan associated with the First Potomac acquisition in January of this year, and immediately rolled into a property disposition program to manage the increase in our leverage resulting from the merger with Select Income REIT. The following prepared remarks regarding our dispositions is associated with our merger-related disposition program. As of today, OPI has either sold, has under agreement or is negotiating agreements for $630.1 million of property sales. In addition to our property sales on July 1, OPI sold all of its RMR Group common shares for $105 million in net proceeds. As a result of this activity and assuming all of the $630.1 million of property sales close as expected. Our pro forma net debt-to-EBITDA is approximately 6.1x, which is at the low end of our target leverage range of 6 to 6.5x. The breakdown of the $630.1 million cited above includes $138 million of closed property sales, $347.3 million of executed agreements and $144.8 million of agreements under negotiation. The success of our deleveraging activity now positions OPI to commence an ongoing capital recycling program that is expected to extend our weighted average lease term, reduce the average age of our properties and help us manage ongoing capital requirements with the ultimate goal of enhancing our cash available for disposition, and positioning OPI to increase its dividend over time. Considering we have achieved the low end of our target leverage range on a pro forma basis, the 8 buildings in our disposition plan that we continue to market for sale have been transitioned to our capital recycling program. These 8 properties have an estimated market value of approximately $90 million. As we begin to acquire properties again, we will primarily focus on first-generation buildings with a minimum remaining lease term of 7 years, and target markets that we believe have drivers of economic growth to deliver above average job creation. We believe the ability to grow rents is important to be successful in the office sector and that markets with above average job creation is one of the key predictors of our ability to grow rents. We will also focus on buildings with an appropriate amenity base, such as live, work, play environments, adequate parking and access to public transportation, and to continue to focus our property management and asset management efforts on creating high-quality tenant experiences to drive above average tenant retention. In July, we entered an agreement to acquire a land parcel in Boston for $2.9 million. This parcel is located at the gateway to Boston's north end, and is across the street from a 141,000 square-foot building we own at 251 Causeway Street. This area of Boston near the TD Garden is experiencing attractive mixed-use development activity with a substantial increase in rents over the past couple of years. Our building is currently 100% occupied by government tenants for slightly less than a one year weighted average lease term. We believe this land parcel is strategic to the long-term value of our building either by earning premium rents because we can offer parking in a market where landlords are not expected to provide parking or to help OPI obtain entitlements to increase the size of the building in a long-term redevelopment plan. Before turning the call over to Chris Bilotto to review OPI's leasing activity and operating statistics, I'd like to highlight that since the beginning of 2018, through the completion of our deleveraging plan associated with [the SIR] merger, OPI will have sold slightly less than $1.2 billion of real estate. These sales have allowed us to improve the quality of our real estate portfolio, which we expect to continue to enhance through our ongoing capital recycling program. Chris?

謝謝你，奧利維亞，早安。歡迎參加辦公地產收入信託第二季財報電話會議。在今天的電話會議上，我將提供我們投資活動的最新情況。克里斯·比洛托（Chris Bilotto）將審查我們的季度租賃活動和營運統計數據，而馬特·布朗（Matt Brown）將審查我們的財務業績、資產負債表和資本需求。許多人可能還記得，OPI 在今年 1 月完成了與 First Potomac 收購相關的去槓桿化計劃，並立即啟動了一項財產處置計劃，以管理因與 Select Income REIT 合併而導致的槓桿增加。以下有關我們處置的準備好的評論與我們的合併相關處置計劃有關。截至今天，OPI 已出售、已達成協議或正在協商協議，價值​​ 6.301 億美元的房產銷售。除了 7 月 1 日的房地產銷售外，OPI 還出售了其所有 RMR 集團普通股，獲得 1.05 億美元的淨收益。這項活動的結果是，假設 6.301 億美元的房地產銷售全部如預期完成。我們的預估淨債務與 EBITDA 比率約為 6.1 倍，處於我們 6 至 6.5 倍目標槓桿範圍的低端。上述 6.301 億美元的細目包括 1.38 億美元的已成交房產銷售、3.473 億美元的已執行協議和 1.448 億美元的正在談判協議。我們去槓桿化活動的成功現在使OPI 能夠開始一項持續的資本回收計劃，該計劃預計將延長我們的加權平均租賃期限，降低我們房產的平均年齡，並幫助我們管理持續的資本需求，最終目標是增加我們的可用現金進行處置，並定位 OPI 以隨著時間的推移增加其股息。考慮到我們已經達到了預計槓桿率目標範圍的低端，我們處置計劃中繼續出售的 8 棟建築已轉入我們的資本回收計劃。這 8 處房產的估計市場價值約為 9,000 萬美元。當我們再次開始收購房產時，我們將主要關注剩餘租賃期至少為 7 年的第一代建築，以及我們認為能夠推動經濟成長、創造高於平均就業機會的目標市場。我們認為，提高租金的能力對於辦公大樓領域的成功至關重要，而創造就業機會高於平均水準的市場是我們提高租金能力的關鍵預測因素之一。我們還將重點關注具有適當設施基礎的建築，例如生活、工作、娛樂環境、充足的停車位和公共交通，並繼續將我們的物業管理和資產管理工作重點放在創造高品質的租戶體驗上，以推動高於平均水準的租戶保留率。7 月，我們達成協議，以 290 萬美元收購波士頓的一塊地。該地塊位於波士頓北端的門戶，與我們在考斯威街 251 號擁有的一棟 141,000 平方英尺的建築隔街相望。波士頓 TD Garden 附近的這個地區正在經歷極具吸引力的綜合用途開發活動，過去幾年租金大幅上漲。我們的大樓目前 100% 由政府租戶佔用，加權平均租賃期限略低於一年。我們相信，這塊地對我們大樓的長期價值具有戰略意義，既可以賺取溢價租金，因為我們可以在房東不提供停車位的市場上提供停車位，也可以幫助 OPI 獲得增加大樓規模的權利在長期重建計劃中。在致電 Chris Bilotto 審查 OPI 的租賃活動和營運統計數據之前，我想強調，自 2018 年初以來，透過完成與 [SIR] 合併相關的去槓桿化計劃，OPI 將小幅出售不到12億美元的房地產。這些銷售使我們能夠提高房地產投資組合的質量，我們預計將透過我們正在進行的資本回收計劃繼續提高這種品質。克里斯？

Thank you, David, and good morning, everyone. As of June 30, OPI's portfolio consisted of 209 buildings containing 29.3 million square feet with a weighted average lease term of 5.8 years. Occupancy for the quarter increased by 200 basis points from the previous quarter to 91.6%. 65.2% of our annualized rent is paid by investment-grade rated tenants which we believe is one of the highest percentage of revenue from investment-grade rated tenants in the office REIT sector. The U.S. government is our largest tenant, accounting for 25.6% of annualized rent and no other tenant accounts for more than 2.9% of annualized rent. Turning to our leasing results for the quarter. We entered into new and renewal leases for 571,000 square feet with a weighted average lease term of 6.7 years, leasing concessions and capital commitments of $4.01 per square foot per lease year and a weighted average roll down in rent of 5.3%. Year-to-date, we have a weighted average rollup in rent of 5.7%. Recall that last quarter, we generated a weighted average rollup in rent of 12.8% and stated that our expectation is for the changing rent to generally be flat for 2019. Our leasing activity also included the execution of leases for almost 65,000 square feet that absorb vacant space across our portfolio. We are in active discussions with tenants for more than 2.6 million square feet of space, including 276,000 square feet that would absorb vacant space and as a result, expect our leasing momentum to continue for the remainder of the year. One of the leases we executed during the quarter was for 173,000 square feet with the State of New Jersey for a 10-year lease extension. This 267,000 square-foot building is a dominant Class A office building in the Trenton, New Jersey CBD, and is located adjacent to the state capital building. By executing this long-term renewal for almost 65% of the building, we created value and expect to market the building for sale during the second half of this year. We thought it would be helpful to highlight some of the industry recognitions we have received by actively managing our carbon footprint and environmental impact. This quarter, OPI was recognized by the Institute for Market Transformation and the U.S. Department of Energy's Better Building Alliance as the 2019 Silver Green Lease Leader. The Green Lease Leader program sets national leasing standards that are energy and environmentally friendly and recognizes leaders in the industry who have effectively developed owner and tenant agreements as a collaboration tool to promote high performance, energy efficient properties. OPI also received a 2019 ENERGY STAR Partner of the Year Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy. This is the second consecutive year that OPI has achieved this honor. As these recognitions can attest, environmental stewardship is a core value of our business, and we remain committed to our sustainability initiatives as we manage and shape our portfolio. Currently, 70 properties in OPI's portfolio are ENERGY STAR certified and 29 properties are LEED certified. Additionally, 18 properties are designated as 360 performance buildings by BOMA, which recognizes best operational practices in the commercial real estate industry. I will now turn the call over to Matt Brown to provide an overview of our financial results, balance sheet and capital needs. Matt?

謝謝大衛，大家早安。截至 6 月 30 日，OPI 的投資組合包括 209 棟建築，面積 2,930 萬平方英尺，加權平均租賃期限為 5.8 年。本季入住率較上一季成長 200 個基點，達到 91.6%。我們 65.2% 的年化租金由投資等級租戶支付，我們認為這是辦公室 REIT 領域投資等級租戶收入比例最高的之一。美國政府是我們最大的租戶，佔年化租金的25.6%，沒有其他租戶佔年化租金的2.9%以上。轉向我們本季的租賃業績。我們簽訂了 571,000 平方英尺的新租約和續租租約，加權平均租期為 6.7 年，租賃優惠和資本承諾為每個租賃年每平方英尺 4.01 美元，加權平均租金下降為 5.3%。今年迄今為止，我們的租金加權平均上漲了 5.7%。回想一下，上個季度，我們的租金加權平均成長率為 12.8%，並表示我們的預期是 2019 年租金變動總體持平。我們的租賃活動還包括執行近 65,000 平方英尺的租賃，以吸收我們投資組合中的空置空間。我們正在與租戶積極討論超過 260 萬平方英尺的空間，其中包括 276,000 平方英尺的空置空間，因此，預計我們的租賃勢頭將在今年剩餘時間內持續下去。我們在本季執行的一項租約是與新澤西州簽訂的 173,000 平方英尺的租約，為期 10 年。這棟267,000平方英尺的建築是新澤西州特倫頓中央商務區的一棟占主導地位的甲級辦公大樓，毗鄰州首府大樓。透過對近 65% 的建築進行長期更新，我們創造了價值，並預計在今年下半年將該建築出售。我們認為，強調我們透過積極管理碳足跡和環境影響而獲得的一些行業認可將很有幫助。本季度，OPI 被市場轉型研究所和美國能源部更好建築聯盟評為 2019 年銀綠色租賃領導者。綠色租賃領導者計劃制定了能源和環境友好的國家租賃標準，並表彰了有效制定業主和租戶協議作為促進高性能、節能物業的協作工具的行業領導者。OPI 也獲得了美國環保署和美國能源部頒發的 2019 年能源之星年度合作夥伴獎。這是OPI連續第二年獲此殊榮。這些認可可以證明，環境管理是我們業務的核心價值，在管理和塑造我們的產品組合時，我們仍然致力於永續發展計畫。目前，OPI 投資組合中有 70 處房產獲得了能源之星認證，29 處房產獲得了 LEED 認證。此外，還有 18 處房產被 BOMA 指定為 360 度性能建築，該建築認可商業房地產行業的最佳營運實踐。我現在將把電話轉給馬特布朗，概述我們的財務表現、資產負債表和資本需求。馬特？

Thanks, Chris. OPI's results for the second quarter and 6 months ended June 30, 2019, include the impact of the merger with Select Income REIT or SIR which closed on December 31, 2018. In addition, OPI sold $297.5 million of properties during the 6 months ended June 30, 2019, including $29 million during the second quarter. The impact of these events has driven majority of the changes in OPI's consolidated financial results as compared to the same period in the previous year. Earlier today, we reported normalized funds from operations or normalized FFO for the second quarter of $79.3 million or $1.65 per diluted share. Our results for the second quarter were positively impacted by certain items that increased net revenue by approximately $8.2 million or $0.17 per diluted share. The main contributor of these items was a net $7.4 million early termination fee related to a single-tenant building located in San Jose, California. This building was a legacy SIR property with 75,621 square feet, and contributed 0.28% of OPI's total annualized rental income. The original lease expiration was in November 2026 and the termination fee represented approximately 60% of the tenant's remaining contractual rent obligation. This property has been opportunistically included in our disposition program, as we believe the combination of the lease termination fee and the value as vacant is greater than the return we could generate by releasing the property. G&A expense for the second quarter was $8.7 million, which was flat as compared to the first quarter of 2019. Our base business management fees are currently being calculated using market capitalization because it is lower than the historical underappreciated cost of assets. As of June 30, 2019, OPI did not accrue any estimated business management incentive fees. Interest expense for the second quarter was $35.3 million, which compares favorably to interest expense of $37.1 million for the first quarter of 2019. The decline in interest expense is mainly the result of $336 million of debt repayments during the 6 months ended June 30, 2019. Now turning to the property level results for the quarter. Our focus will be geared towards comparisons on a same-property basis. In addition, we have included quarterly pro forma same-property information in our earnings release and supplemental as if the SIR merger had closed on January 1, 2018. On a same-property basis for the quarter ended June 30, 2019, rental income decreased $2.6 million or 2.9% year-over-year and pro forma same-property cash basis NOI was $107.3 million or a 2.9% decline on a year-over-year basis. These decreases were driven by overall declines in occupancy. I will now switch focus to discuss capital and ongoing deleveraging efforts. We spent $7.3 million on recurring building improvements and $13.9 million on tenant improvements and leasing costs in the second quarter of 2019. As of quarter end, we had approximately $61.3 million of unspent leasing-related capital obligations of which 35% represents tenant managed TI's and $17 million cannot be spent until future years. In July, we sold our 2.8 million shares of the RMR Group and received net proceeds of approximately $105 million, which was used to pay down our term loan. We currently have $65 million outstanding on our term loan. The dividend yield on our investment in the RMR Group was 3% based on the June 30 closing price, and we were able to accretively pay off debt at 3.8%. During our ownership period, we generated a 261% net return on this investment. At June 30, OPI had $65 million outstanding on our $750 million revolving credit facility. On a pro forma basis for the sale of the RMR Group shares, OPI's net debt to annualized adjusted EBITDA was 6.6x at quarter end. As David previously stated, once we close on the $630.1 million in property sales as expected, our pro forma net debt-to-EBITDA will be approximately 6.1x. Subsequent to quarter end, we sold 2 properties for an aggregate sales price of $39 million. In addition, in July, we prepaid all $350 million of our 3.75% senior notes due in August 2019 using cash on hand and borrowings under our revolving credit facility. We currently have $400 million outstanding on our revolving credit facility, which we plan to reduce with the proceeds from the sale of properties over the next 60 days. Operator, that concludes our prepared remarks. We're ready to open the call up for questions.

謝謝，克里斯。OPI 截至 2019 年 6 月 30 日的第二季和 6 個月業績包括與 2018 年 12 月 31 日完成的 Select Income REIT 或 SIR 合併的影響。此外，OPI 在截至 2019 年 6 月 30 日的 6 個月內出售了 2.975 億美元的房產，其中第二季出售了 2,900 萬美元。這些事件的影響導致了 OPI 合併財務表現與去年同期相比的大部分變化。今天早些時候，我們報告了第二季度正常營運資金或正常 FFO 為 7,930 萬美元，即稀釋後每股 1.65 美元。我們第二季的業績受到某些項目的正面影響，這些項目使淨收入增加了約 820 萬美元或稀釋後每股 0.17 美元。這些項目的主要貢獻者是與位於加州聖荷西的一棟單租戶建築相關的 740 萬美元的提前終止費用。該建築是 SIR 的遺產物業，面積為 75,621 平方英尺，佔 OPI 年化租金收入總額的 0.28%。最初的租約到期日為 2026 年 11 月，終止費用約佔租戶剩餘合約租金義務的 60%。該房產已被機會性地納入我們的處置計劃中，因為我們相信租賃終止費和空置價值的總和大於我們透過釋放該房產所能產生的回報。第二季的一般管理費用為 870 萬美元，與 2019 年第一季持平。我們的基本業務管理費目前使用市值計算，因為它低於歷史低估的資產成本。截至2019年6月30日，OPI未提列任何預期的業務管理獎勵費。第二季的利息支出為 3,530 萬美元，優於 2019 年第一季的利息支出 3,710 萬美元。利息支出的下降主要是由於截至2019年6月30日的6個月內償還了3.36億美元的債務。現在轉向本季的房地產層面結果。我們的重點將放在相同財產的基礎上進行比較。此外，我們還在收益發布和補充材料中納入了季度預計相同財產信息，就好像 SIR 合併已於 2018 年 1 月 1 日完成一樣。截至 2019 年 6 月 30 日的季度，以同物業計算，租金收入年減 260 萬美元，或 2.9%；預計同物業現金基礎 NOI 為 1.073 億美元，年減 2.9%年為基礎。這些下降是由於入住率整體下降所致。我現在將重點討論資本和正在進行的去槓桿化努力。2019 年第二季度，我們在經常性建築改善上花費了 730 萬美元，在租戶改善和租賃成本上花費了 1,390 萬美元。截至季末，我們有約 6,130 萬美元未動用的租賃相關資本義務，其中 35% 代表租戶管理的 TI，1,700 萬美元要到未來幾年才能動用。7 月，我們出售了 RMR 集團的 280 萬股股票，獲得了約 1.05 億美元的淨收益，用於償還我們的定期貸款。目前我們的定期貸款有 6500 萬美元未償還。根據 6 月 30 日收盤價計算，我們投資 RMR 集團的股息殖利率為 3%，我們能夠以 3.8% 的利率累積償還債務。在我們持有期間，我們的這項投資獲得了 261% 的淨回報。截至 6 月 30 日，OPI 的 7.5 億美元循環信貸額度中尚未償還 6,500 萬美元。根據出售 RMR 集團股票的預估數據，截至季末，OPI 的淨債務與年化調整 EBITDA 比率為 6.6 倍。正如 David 之前所說，一旦我們按預期完成 6.301 億美元的房地產銷售，我們的預估淨債務與 EBITDA 比率將約為 6.1 倍。季度末後，我們出售了 2 處房產，總售價為 3,900 萬美元。此外，7月份，我們使用手頭現金和循環信貸額度下的借款預付了2019年8月到期的全部3.5億美元3.75%優先票據。目前，我們的循環信貸額度尚未償還 4 億美元，我們計劃透過未來 60 天內出售房產的收益來減少這筆餘額。接線員，我們準備好的發言到此結束。我們已準備好接受提問。

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

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

A couple of questions. When it comes to the lease renewals and the new leases for the second quarter, was there anything special or unusual in the [rank-in] sessions?

有幾個問題。說到第二季的續租和新租，[排名]環節有什麼特別或不尋常的地方嗎？

Good question, Bryan. I don't know that there was anything unusual. I mean, we did have a couple of government tenants that we did short-term renewals for, that -- while they continue to work through their housing plan. So that actually reduced the [vault] below what we would normally expect it to be. We also did a -- as Chris highlighted in his prepared remarks, we did a 10-year lease extension with State of New Jersey in Trenton. Yes, that's not a very dynamic market and you haven't really seen much in the way of rent growth over the last 5 or 6 years. So while we extended the term 10 years, we had a slight rolldown of rent there. But we also think we created value by locking in over 60% of the buildings leasable square footage for over a 10-year term. But generally, we have some markets where we've seen better rent growth than others, and it just so happened, this quarter had some of our weaker markets where we had successfully (inaudible).

好問題，布萊恩。我不知道有什麼異常。我的意思是，我們確實有一些政府租戶，我們為他們進行了短期續約，同時他們繼續完成他們的住房計劃。因此，這實際上將[金庫]降低到了我們通常預期的水平以下。我們還做了一個——正如克里斯在他準備好的演講中所強調的那樣，我們與新澤西州特倫頓的租約延長了 10 年。是的，這不是一個非常有活力的市場，在過去的五六年裡你並沒有看到太多的租金成長。因此，雖然我們將期限延長了 10 年，但租金略有下降。但我們也認為，透過在 10 年以上的期限內鎖定超過 60% 的建築可出租面積，我們創造了價值。但總的來說，我們在一些市場上看到了比其他市場更好的租金成長，而碰巧的是，本季在一些較弱的市場上我們取得了成功（聽不清楚）。

And how much would you say the variability in the rent increases the quarter before this past one and then this quarter is related to, kind of, all the disposition activity? Is that contributing to some of the variability? Or no?

您認為上一季租金的波動性增加了多少，然後本季與所有處置活動有關？這是否會導致一些變化？或沒有？

No, I don't think that contributes to leasing spreads at all, Bryan. But remember, we've said on the last call that we expected leasing spreads to be flat this year. And first quarter was up big. So we would expect that we're going to have flat to slightly down in the third and fourth quarters.

不，我認為這根本不會影響租賃價差，布萊恩。但請記住，我們在上次電話會議中表示，我們預計今年的租賃利差將持平。第一季業績大幅成長。因此，我們預計第三季和第四季的業績將持平或略有下降。

And then just kind of a two-part question as it relates to the dispositions. Do you think everything still gets done in 2019? Or does some of it roll over into 2020? And then second part of the question is, as you move through the process, is pricing coming in better or worse? Or in line with your expectations?

然後是一個與處置相關的由兩部分組成的問題。你覺得2019年一切都還完成了嗎？或者其中一部分會延續到 2020 年嗎？問題的第二部分是，當你完成這個過程時，定價是更好還是更糟？還是符合你的預期？

Yes. It's a good question, Bryan. Most of what we have under agreements, like -- I think, actually everything that we have under agreement, so that's, call it, $347 million. We expect that's going to close in the third quarter. I think some of the stuff we're negotiating contracts on could close in late September. So I think, of the stuff that we have under agreement and are negotiating, that's all going to close this year. We've got a handful of assets in our capital recycling program. That could -- some of that could close late this year, or some of it could close early next year.

是的。這是個好問題，布萊恩。我們根據協議擁有的大部分資金，例如——我認為，實際上是我們根據協議擁有的所有資金，也就是說，3.47 億美元。我們預計這將在第三季完成。我認為我們正在談判的一些合約可能會在九月下旬結束。所以我認為，我們已經達成協議和正在談判的事情都將在今年完成。我們的資本回收計劃中有一些資產。其中一些可能會在今年稍後關閉，或者其中一些可能會在明年初關閉。

And then, just lastly on that capital recycling program comment. Are you actually finding stuff out in the marketplace in the markets and with the asset type that you want at respectable pricing that you could pursue?

最後，關於資本回收計劃的評論。您是否真的在市場上以您可以追求的可觀的價格找到了您想要的資產類型和資產類型？

Yes. We're looking -- we've looked at some stuff. We haven't really found anything at this point, Bryan, that we're prepared to buy. We don't think we've got the right match yet. But when you look at the capital that we would be selling and some of these dispositions over, call it, a 5-year basis, and you analyze an acquisition based upon your cash contribution, and you're buying a first-generation building that doesn't have a lot of capital requirements, we can get reasonably aggressive on a cap rate and still create accretion to our ability to increase the dividend. And that's really the focus that we have as we consider ongoing acquisition through our capital recycling program.

是的。我們正在尋找——我們已經研究了一些東西。布萊恩，我們目前還沒有真正找到任何我們準備購買的東西。我們認為我們還沒有找到合適的比賽。但是，當您查看我們將要出售的資本以及其中一些處置（將其稱為 5 年基礎）時，您會根據您的現金貢獻來分析收購，並且您正在購買一棟第一代建築，沒有太多的資本要求，我們可以在資本化率上採取相當積極的態度，同時仍然可以增強我們增加股息的能力。當我們考慮透過我們的資本回收計劃進行持續收購時，這確實是我們關注的焦點。

Our next question comes from Vikram Malhotra with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Vikram Malhotra。

This is Adam Gabalski on for Vikram. I just had another one on the capital recycling program. Can you call out any sort of key markets? You mentioned you want to be in markets where the job growth is strong and the rent growth is strong. Are there any sort of token markets that you guys are looking at? Or that are sort of at the top of the list?

我是亞當·加巴爾斯基 (Adam Gabalski)，代表維克拉姆 (Vikram) 發言。我剛剛收到了另一份關於資本回收計劃的報告。您能指出一些關鍵市場嗎？您提到您希望進入就業成長強勁且租金成長強勁的市場。你們正在關注任何類型的代幣市場嗎？或者說這在清單的頂部？

Well, I think the way we prioritize capital recycling is buildings where we don't believe we can achieve long-term rent growth and where we have ongoing capital requirements that we don't believe are economic. And some of that might be in some of our, I guess, lower secondary type markets. But that could -- they could also be in more primarily markets. It really -- I guess, there's not markets per se that we're looking to exit. It's more exiting buildings where we don't believe we can achieve long-term rent growth that can contribute to increasing the dividend.

嗯，我認為我們優先考慮資本回收的方式是，我們不相信我們能夠實現長期租金成長，我們認為持續的資本要求不經濟。我猜其中一些可能是在我們的一些較低的二級市場。但這也可能——它們也可能位於更主要的市場。我想，確實沒有我們想要退出的市場本身。我們認為，更多現有的建築無法實現長期租金成長，有助於增加股息。

Got it. And then just, I wanted to touch on one comment you made earlier just about the availability of deals at attractive pricing. And as far as deploying capital goes, would you guys consider pivoting more towards a development projects? Or even potentially share buybacks, if it turns out that there aren't enough deals in the market to sort of deploy all that capital near term?

知道了。然後，我想談談您之前發表的關於以有吸引力的價格提供交易的評論。就部署資本而言，你們會考慮更多轉向開發專案嗎？或者，如果事實證明市場上沒有足夠的交易來在短期內部署所有資本，甚至可能進行股票回購？

I think the only types of development we would consider were buildings that we own where we think we can accretively reposition that asset either through adding additional square footage or [up-tiering] the class of the asset. I don't -- we have no intention of buying buildings for redevelopment or buying land for development. Will we consider a share buyback? Sure, we might consider that. We haven't socialized that with the board, and it's not particularly high on our list of things to do. But I wouldn't say we would never consider that.

我認為我們唯一會考慮的開發類型是我們擁有的建築物，我們認為我們可以透過增加額外的平方英尺或[升級]資產的類別來增加重新定位該資產。我不——我們無意購買建築物進行重建或購買土地進行開發。我們會考慮股票回購嗎？當然，我們可能會考慮這一點。我們還沒有與董事會討論過這一點，而且它在我們要做的事情清單上也不是特別重要。但我不會說我們永遠不會考慮這一點。

Our next question comes from Mitch Germain with JMP Securities.

我們的下一個問題來自 JMP 證券的 Mitch Germain。

So David, just curious about the sales pipeline. I think you're originally doing $750 million, but then since you sold the RMR shares, you, I guess, scaled that back? Is that -- how should I think about it?

大衛只是對銷售管道感到好奇。我認為您最初的投資額為 7.5 億美元，但自從您出售了 RMR 股票後，我想您是否縮減了投資規模？那是──我該怎麼想呢？

It's a good question, Mitch. We -- well, let me first kind of tell you a little bit about some of the stuff that we've sold. So of the $138 million of assets we have sold so far in this program, the weighted average main lease term has been less than 5 years. The average age of the buildings have been greater than 30 years. And because some of those buildings were vacant, the cap rate is less than 3%. Of the buildings that we have either under agreement or negotiating agreements on, those buildings also average 30 years or older, and they have weighted average lease terms of around 6 years. So maybe right around where the portfolio average is. Those are going to sell for, call it, a 7.5% cap rate or slightly less than that. So we're achieving what I think are pretty good cap rates, particularly where you look where our implied cap rate is where we're trading today. So kind of back to your question, we had talked about selling $750 million of properties. Because we sold the RMR shares, we can sell, call it, $650 million of properties or $100 million less and be at the low end of our target leverage range. I think that it makes more sense given that we've achieved our target leverage to start thinking about capital recycling and trying to position us to grow the dividend. So while we may not sell $750 million specifically associated with the -- $750 million of assets with deleveraging, we certainly expect that we're going to sell $750 million of assets between now and the end of the year or maybe mid-first quarter. Does that make sense?

這是個好問題，米奇。我們——好吧，首先讓我告訴你一些我們銷售的一些東西。因此，到目前為止，我們在該計劃中已出售的 1.38 億美元資產中，加權平均主要租賃期限不到 5 年。建築物的平均年齡已超過30年。由於其中一些建築物是空置的，上限利率低於 3%。在我們已達成協議或正在談判協議的建築物中，這些建築物的平均使用年限也為 30 年或以上，並且加權平均租賃期限約為 6 年。所以也許就在投資組合平均值附近。這些產品的售價上限為 7.5% 或稍低一些。因此，我們正在實現我認為相當不錯的資本化率，特別是當你看看我們今天交易的隱含資本化率時。回到你的問題，我們討論過出售 7.5 億美元的房產。因為我們出售了 RMR 股票，所以我們可以出售（稱之為）6.5 億美元的財產或少 1 億美元，並且處於我們目標槓桿範圍的低端。我認為，考慮到我們已經實現了目標槓桿，開始考慮資本回收並試圖讓我們增加股息，這更有意義。因此，雖然我們可能不會出售與去槓桿化相關的 7.5 億美元資產，但我們當然預計從現在到今年年底或第一季中期，我們將出售 7.5 億美元的資產。那有意義嗎？

It makes a lot of sense. I had a follow-up. Do you think you get credit for the dividend?

這很有道理。我有一個後續行動。您認為您能獲得股息嗎？

I'm sorry?

對不起？

Do you think that the company gets credit for its high dividend yield?

您認為該公司因其高股息率而獲得讚譽嗎？

That's a very interesting question, and I think the answer is no. Otherwise, it wouldn't be a high dividend yield.

這是一個非常有趣的問題，我認為答案是否定的。不然的話，股息率也不會那麼高。

I guess, I asked that David because why not just -- if you have other instances in the portfolio, whether it be some high CapEx or moveouts, why not sell the $750 million or more now while the market's giving you the opportunity, and I don't think the dividend growth is necessary as part of the near-term thesis. I think it's probably deleveraging more if you have assets that you think you could trade into that are compelling.

我想，我問大衛是因為為什麼不——如果你的投資組合中有其他實例，無論是高資本支出還是搬遷，為什麼不在市場給你機會的時候出售 7.5 億美元或更多，而且我我認為股息成長沒有必要作為近期主題的一部分。我認為，如果你擁有你認為可以交易的有吸引力的資產，那麼去槓桿化的效果可能會更大。

Yes. I understand the question better now, Mitch. Because we're trying to position the company to grow the dividend, it doesn't necessarily -- we will grow the dividend, right? I think ILPT probably had similar comments on their call this week which is, until they start trading in line with the peer group, we may deleverage instead of buying things. So it really depends on what the opportunities are. We hope that as we continue to talk to investors and we continue to execute on our strategy, people will recognize the value not only in our ability to grow NAV, but also position the company to increase the dividend over time, depending upon how the stock performs.

是的。我現在更好地理解這個問題了，米奇。因為我們試圖讓公司增加股息，但我們不一定會增加股息，對嗎？我認為 ILPT 可能在本週的電話會議上發表了類似的評論，即在他們開始與同行進行交易之前，我們可能會去槓桿化而不是購買東西。所以這實際上取決於機會是什麼。我們希望，隨著我們繼續與投資者交談並繼續執行我們的策略，人們不僅會認識到我們增加資產淨值的能力的價值，而且還會使公司能夠隨著時間的推移增加股息，具體取決於股票的表現施行。

Got you. Last one for me. The land parcel that you acquired in Boston, my -- I just -- you might have implied it, maybe I missed it. Is the tenant moving out?

明白你了。最後一張給我。你在波士頓獲得的那塊地，我的——我只是——你可能暗示了這一點，也許我錯過了。租客要搬走嗎？

No. I mean, it's a -- it's basically a parking lot.

不。我的意思是，它基本上是一個停車場。

I meant the property across the street.

我指的是街對面的房產。

We don't know at this point. I mean, I'll be honest with you, half the building is occupied by the VA, and we would love for them to leave. We've been actually been trying to get them out of the building for several years. And the other half is occupied by the State of Massachusetts. We'd like them to stay, but if both of them leave, we have a very interesting opportunity to create value with that asset.

目前我們還不知道。我的意思是，我會誠實地告訴你，一半的大樓被退伍軍人管理局佔用，我們希望他們離開。事實上，我們多年來一直在努力將他們從大樓裡救出來。另一半則由馬薩諸塞州佔據。我們希望他們留下來，但如果他們都離開，我們就有一個非常有趣的機會利用該資產創造價值。

This concludes our question-and-answer session. I would like to turn the conference back over to David Blackman for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給大衛布萊克曼（David Blackman）發表閉幕詞。

Thank you, operator. We've made tremendous progress in executing our deleveraging strategy and positioning our company for long-term growth. We remain committed to shaping the portfolio through a capital recycling program that is expected to enhance our cash available for distribution over time. We also remain focused on renewing leases, pushing rents and leasing vacant space across our portfolio. Generally, we're pleased with our accomplishments year-to-date and look forward to updating you on our successes next quarter. Operator, that concludes our call.

謝謝你，接線生。我們在執行去槓桿化策略和為公司的長期成長定位方面取得了巨大進展。我們仍然致力於透過資本回收計劃來塑造投資組合，預計隨著時間的推移，該計劃將增加我們可用於分配的現金。我們也繼續專注於更新租約、提高租金和租賃我們投資組合中的空置空間。總的來說，我們對今年迄今所取得的成就感到滿意，並期待在下個季度向您通報我們取得的成功。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.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。