Office Properties Income Trust (OPI) 2019 Q3 法說會逐字稿

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

早安，歡迎參加辦公地產收入信託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 would now like to turn the conference over to Olivia Snyder, Manager of Investor Relations. Please go ahead.

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 third quarter of 2019. We will then open the call to a question-and-answer session with sell-side analysts.

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 年第三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。

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, November 1, 2019, and actual results may differ materially from those that we project.

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 11 月 1 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。

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.

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。

In addition, we will be discussing non-GAAP numbers during this call, including normalized funds from operations or normalized FFO and cash basis net operating income, or cash basis NOI. A reconciliation of these non-GAAP figures to net income and the components to calculate cash available for distribution, or CAB, are available in our supplemental operating and financial data package, which also can be found on our website.

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 以及現金基礎淨營業收入或現金基礎 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 (CAB) 的組成部分，這些資料包也可以在我們的網站上找到。

And now I will turn the call over to David.

現在我將把電話轉給大衛。

Thank you, Olivia, and good morning. Welcome to the third quarter earnings call for Office Properties Income Trust. As Matt will discuss in greater detail, this morning, we announced normalized FFO per share of $1.45, which beat consensus estimates by $0.05 per share. We also announced solid third quarter leasing activity with almost 760,000 square feet of new and renewal leases for an average lease term of almost 13 years, a 5% roll up in rent and leasing capital of only $1.82 per square foot per lease year. In addition, we increased consolidated occupancy by 170 basis points from the second quarter of 2019 to 93.3%. Chris will provide greater detail on these results when he reviews our operations.

謝謝你，奧利維亞，早安。歡迎參加辦公地產收入信託第三季財報電話會議。正如 Matt 將在今天早上更詳細地討論的那樣，我們宣布每股正常 FFO 為 1.45 美元，比市場普遍預期高出每股 0.05 美元。我們也宣布第三季租賃活動強勁，新租約和續約租約面積近 76 萬平方英尺，平均租約近 13 年，租金上漲 5%，每個租賃年每平方英尺的租賃資本僅為 1.82 美元。此外，我們的綜合入住率比 2019 年第二季提高了 170 個基點，達到 93.3%。克里斯將在審查我們的營運時提供有關這些結果的更多詳細資訊。

A major strategic focus for 2019 has been rightsizing our leverage. Year-to-date, we have sold or entered agreements to sell 60 buildings for $731.5 million at a cap rate of 5.6% for buildings that have an average age of 22 years, an average occupancy of 71% and an average remaining lease term of 4.5 years. These key portfolio metrics are less favorable than the portfolio metrics of OPI's consolidated portfolio. We also eliminated more than $170 million of capital costs at OPI over the next 5 years by selling these assets.

2019 年的主要策略重點是調整我們的槓桿率。年初至今，我們已出售或簽訂協議出售 60 棟建築，價格為 7.315 億美元，上限率為 5.6%，這些建築的平均樓齡為 22 年，平均入住率為 71%，平均剩餘租賃期為4.5年。這些關鍵投資組合指標不如 OPI 合併投資組合的投資組合指標有利。我們也透過出售這些資產在未來 5 年內消除了 OPI 超過 1.7 億美元的資本成本。

Since the end of the second quarter, we sold 12 buildings for $298.1 million and as of today, have agreements to sell 10 buildings for $135.9 million. In July, we sold all of our common shares in The RMR Group for net proceeds of $105 million, which increases our aggregate asset sales proceeds since the end of the second quarter to more than $400 million. Not only have these asset sales improved a number of key property metrics for OPI, we also reduced our leverage ratio to 6.2x, which is below the midpoint of our targeted range. Assuming we sell the 10 buildings under agreement for $135.9 million, our pro forma leverage declines to approximately 6x, which is the low end of our targeted range.

自第二季末以來，我們以 2.981 億美元的價格出售了 12 棟建築，截至今天，我們已達成協議以 1.359 億美元的價格出售 10 棟建築。7 月份，我們出售了 RMR Group 的所有普通股，淨收益為 1.05 億美元，這使我們自第二季末以來的資產銷售總收益增加到超過 4 億美元。這些資產出售不僅改善了 OPI 的多項關鍵房地產指標，還將槓桿率降低至 6.2 倍，低於我們目標範圍的中點。假設我們以 1.359 億美元的價格出售協議中的 10 棟建築，我們的預期槓桿率將降至約 6 倍，這是我們目標範圍的下限。

As a result of achieving our leverage target during the third quarter, we are transitioning our principal strategic focus from deleveraging to acquiring core properties with proceeds from asset sales, which we refer to as our capital recycling program. The goal of our capital recycling program is to create long-term dividend growth by acquiring properties with higher cash flow after capital costs than properties we are selling. As additional benefits, we expect our capital recycling program will reduce the average age of our properties, extend the weighted average term of our leases, improve the prospects of renewing tenants and help us shape the geographic and tenant diversification across our portfolio.

由於在第三季實現了槓桿率目標，我們正在將主要策略重點從去槓桿化轉向利用資產出售收益收購核心物業，我們將其稱為我們的資本回收計劃。我們的資本回收計劃的目標是透過收購扣除資本成本後現金流量高於我們正在出售的房產的房產來創造長期股息成長。作為額外的好處，我們預計我們的資本回收計劃將降低我們房產的平均年齡，延長我們租賃的加權平均期限，改善續租租戶的前景，並幫助我們塑造整個投資組合的地理和租戶多元化。

Our acquisitions team is busy identifying single-tenant buildings with average ages of 10 years or less that are encumbered with first-generation leases for 7 years or longer terms and that are located in markets where we believe we can grow rent over time. We also expect to continue acquiring buildings leased to government tenants, which can be both single-tenant and multi-tenant buildings, but most importantly, where the agency occupant has high security requirements, which we believe improves the prospects of renewing tenant leases. This is an exciting transition for our company, and we look forward to updating you on our capital recycling progress during future calls.

我們的收購團隊正忙於尋找平均使用年限為10 年或更短的單租戶建築，這些建築受第一代租賃期為7 年或更長時間的困擾，並且位於我們認為可以隨著時間的推移增加租金的市場。我們也預計將繼續收購租賃給政府租戶的建築物，這些建築物可以是單一租戶和多租戶建築物，但最重要的是，機構佔用者對安全要求很高，我們相信這會改善續簽租戶租約的前景。這對我們公司來說是一個令人興奮的轉變，我們期待在未來的電話會議中向您通報我們的資本回收進度。

I will now turn the call over to Chris Bilotto to review OPI's leasing activity and operating statistics. Chris?

我現在將電話轉給 Chris Bilotto，以審查 OPI 的租賃活動和營運統計數據。克里斯？

Thank you, David, and good morning, everyone. As of September 30, OPI's portfolio consisted of 200 buildings containing 27.3 million square feet with a weighted average lease term of 5.7 years. During the quarter, occupancy increased 170 basis points from the second quarter to 93.3%, primarily as a result of our property sales. 63.9% of our annualized rent is paid by investment grade-rated tenants, which we believe is one of the highest percentages of revenue from investment grade-rated tenants in the office REIT sector. The U.S. government remains our largest tenant, accounting for 25.8% of annualized rent, and no other tenant accounts for more than 3% of annualized rent.

謝謝大衛，大家早安。截至 9 月 30 日，OPI 的投資組合包括 200 棟建築，面積 2,730 萬平方英尺，加權平均租賃期限為 5.7 年。本季度，入住率較第二季度成長 170 個基點，達到 93.3%，主要歸功於我們的房地產銷售。我們63.9%的年化租金是由投資等級租戶支付的，我們認為這是辦公室房地產投資信託領域投資等級租戶收入比例最高的之一。美國政府仍然是我們最大的租戶，佔年化租金的25.8%，沒有其他租戶佔年化租金的3%以上。

Turning to our leasing and operating results for the quarter. During the third quarter, we continued our strong leasing activity, entering into new and renewal leases for 759,000 square feet with a weighted average lease term of 12.7 years, leasing concessions and capital commitments of only $1.82 per square foot per lease year and a weighted average rollup in rent of 5%. Year-to-date, our leasing activity has generated a weighted average rollup in rent of 5.5% and a weighted average lease term of 9.1 years, helping to advance our goals of driving internal growth and extending our consolidated weighted average lease term.

轉向我們本季的租賃和營運業績。第三季度，我們繼續強勁的租賃活動，簽訂了759,000 平方英尺的新租約和續租租約，加權平均租期為12.7 年，租賃優惠和資本承諾每個租賃年每平方英尺僅為1.82 美元，加權平均租期為12.7 年。租金累計5%。今年迄今為止，我們的租賃活動使租金加權平均上漲了 5.5%，加權平均租賃期限為 9.1 年，有助於推進我們推動內部成長和延長綜合加權平均租賃期限的目標。

As a result of our third quarter leasing activity, we anticipate a full year 2019 rollup in rent, instead of rents remaining flat for the year. We continue to have a robust leasing pipeline as we are in active discussions with tenants for more than 2.1 million square feet of space, including 336,000 square feet that would absorb vacant space across the portfolio.

由於我們第三季的租賃活動，我們預計 2019 年全年租金將上漲，而不是全年租金保持不變。我們繼續擁有強大的租賃管道，因為我們正在與租戶積極討論超過 210 萬平方英尺的空間，其中包括 336,000 平方英尺，用於吸收整個投資組合的空置空間。

Now to highlight a few leasing transactions that helped drive third quarter results. We had entered into new -- we entered into 2 large renewals of government tenants: one is a 20-year transaction with the Defense Intelligence Agency for a 16.9% roll up in rent on a 266,000 square foot single-tenant building, the other is a transaction with the Department of Homeland Security for 170,000 square feet for approximately 5 years. In one of our West Coast buildings, we renewed a nongovernment tenant and 61,000 square feet with a 58% roll up in rent and a weighted average lease term of 7.8 years. We believe these renewals complement OPI's business plan for having high tenant retention and for lengthening our consolidated weighted average lease term.

現在重點介紹一些有助於推動第三季業績的租賃交易。我們已經與政府租戶達成了兩項新協議：一項是與國防情報局達成的為期 20 年的交易，一棟 266,000 平方英尺的單租戶建築的租金上漲 16.9%，另一項是與國土安全部交易170,000 平方英尺，為期約5 年。在我們西海岸的一棟建築中，我們續簽了一位非政府租戶和 61,000 平方英尺的面積，租金上漲了 58%，加權平均租賃期限為 7.8 年。我們相信這些續約補充了 OPI 的業務計劃，以提高租戶保留率並延長我們的綜合加權平均租賃期限。

As we continue our deleveraging efforts, we will continue our focus on tenant retention and operations through leveraging The RMR Group's asset and property management teams. We believe the combination of our experience and RMR's local presence in more than 30 offices across the U.S. provide a distinct advantage for having competitive buildings, tracking market trends and demand drivers and building strong relationships with both our tenants and leasing brokers.

隨著我們繼續去槓桿化工作，我們將透過利用 RMR 集團的資產和物業管理團隊，繼續專注於租戶保留和營運。我們相信，我們的經驗與RMR 在美國30 多個辦事處的本地業務相結合，為擁有有競爭力的建築、跟踪市場趨勢和需求驅動因素以及與我們的租戶和租賃經紀人建立牢固的關係提供了明顯的優勢。

Turning to operations. We are harnessing new technologies and data analytics to drive operating efficiency and to be a market leader in environmental sustainability. An example of these efforts is the use of real-time energy monitoring and data analysis to manage our energy performance in approximately 25% of OPI's portfolio. Phase 1 of this effort has resulted in a year-to-date reduction in energy consumption of 6 million kilowatt hours that has a payback of less than 1 year. Implementation of this program has resulted in measurable operating expense savings of $800,000 year-to-date, limits OPI's exposure to increasing energy costs and supports OPI's initiative to reduce portfolio's carbon footprint through its sustainability efforts.

轉向營運。我們正在利用新技術和數據分析來提高營運效率並成為環境永續發展的市場領導者。這些努力的一個例子是使用即時能源監控和數據分析來管理我們約 25% 的 OPI 產品組合的能源績效。這項工作的第一階段迄今已減少能源消耗 600 萬千瓦時，投資回收期不到 1 年。該計劃的實施已導致年初至今節省了 80 萬美元的可衡量營運費用，限制了 OPI 面臨的不斷增加的能源成本風險，並支持 OPI 透過永續發展努力減少投資組合碳足跡的舉措。

In addition to receiving a number of property-level environmental awards this year, both OPI and The RMR Group earned the distinguished ENERGY STAR Partner of the Year Award. The RMR Group also won the Real Estate Management Excellence Award for Employee and Leadership Development from the Institute of Real Estate Management and -- at its 2019 Global Summit in September. This award recognizes RMR's programs and initiatives for recruitment, onboarding, retention and professional development. We believe the breadth, strength and recognition of these programs help RMR attract and retain high-quality employees and are a testament to the benefits we receive from RMR's shared services platform.

除了今年獲得多項地產級環境獎項外，OPI 和 RMR 集團還榮獲傑出的能源之星年度合作夥伴獎。RMR 集團也在 9 月的 2019 年全球高峰會上榮獲房地產管理協會頒發的房地產管理卓越員工和領導力發展獎。該獎項旨在表彰 RMR 在招聘、入職、保留和專業發展方面的計劃和舉措。我們相信，這些計劃的廣度、強度和認可有助於 RMR 吸引和留住高素質員工，並證明了我們從 RMR 共享服務平台獲得的好處。

I will now turn the call over to Matt Brown to provide an overview of our financial results, balance sheet and capital needs. Matt?

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, and good morning, everyone. OPI's results for the third quarter and 9 months ended September 30, 2019, include the impact of the merger with Select Income REIT, or SIR, which closed on December 31, 2018. In addition, OPI has sold $585 million of properties during the 9 months ended September 30, 2019, including $287 million during the third quarter. The impact of these events has driven the majority of the changes in OPI's consolidated financial results as compared to the same period in the previous year. As a result, our discussion on consolidated results will focus on changes as compared to the second quarter of 2019.

謝謝克里斯，大家早安。OPI 截至 2019 年 9 月 30 日的第三季及 9 個月業績包括與 Select Income REIT（簡稱 SIR）合併的影響，合併於 2018 年 12 月 31 日完成。此外，截至 2019 年 9 月 30 日的 9 個月內，OPI 已出售價值 5.85 億美元的房產，其中第三季出售價值 2.87 億美元。這些事件的影響推動了 OPI 合併財務表現與去年同期相比的大部分變化。因此，我們對合併業績的討論將重點放在與 2019 年第二季相比的變化。

Earlier today, we reported normalized funds from operations, or normalized FFO, for the third quarter of $69.7 million or $1.45 per diluted share. This compares to normalized FFO of $79.3 million or $1.65 per diluted share for the second quarter of 2019. The decline in normalized FFO on a sequential basis is a result of our property dispositions during the third quarter and certain items that increased net revenue by approximately $8.2 million or $0.17 per diluted share in the second quarter that were discussed on last quarter's call.

今天早些時候，我們報告了第三季正常營運資金（或稱正常 FFO）為 6,970 萬美元，即稀釋後每股 1.45 美元。相比之下，2019 年第二季的標準化 FFO 為 7,930 萬美元，即稀釋後每股 1.65 美元。正常化 FFO 環比下降是由於我們第三季度的財產處置以及上季度電話會議上討論的第二季度淨收入增加約 820 萬美元或稀釋後每股 0.17 美元的某些項目的結果。

G&A expense for the third quarter was $8 million, which compares favorably to G&A expense of $8.7 million for the second quarter of 2019. The decline in G&A expense is mainly the result of a reduction in our business management fee paid to RMR due to the reduction in our total market capitalization from the debt repaid with disposition proceeds, partially offset by appreciation in OPI's share price. As of September 30, OPI did not accrue any estimated business management incentive fees.

第三季的一般管理費用為 800 萬美元，優於 2019 年第二季的一般管理費用 870 萬美元。一般及行政費用的下降主要是由於我們支付給 RMR 的業務管理費減少，這是由於用處置收益償還債務導致我們的總市值減少，部分被 OPI 股價的升值所抵消。截至 9 月 30 日，OPI 未提列任何預期的業務管理獎勵費。

Interest expense for the third quarter was $32.4 million, a decline of 8.4% as compared to interest expense of $35.3 million in the second quarter of 2019. The decline in interest expense is mainly the result of $711 million of debt repayments during the 9 months ended September 30, 2019, including $375 million repaid in the third quarter, net of borrowings on our revolving credit facility.

第三季利息支出為 3,240 萬美元，較 2019 年第二季利息支出 3,530 萬美元下降 8.4%。利息支出下降主要是由於截至2019年9月30日的9個月內償還了7.11億美元的債務，其中包括第三季償還的3.75億美元，扣除我們的循環信貸額度借款。

Now turning to property level results for the quarter. 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 pro forma same-property basis for the third quarter of 2019, property cash basis net operating income, or NOI, declined 7.1% compared to the third quarter of 2018. The decline was mainly driven by a decline in same-store occupancy of 250 basis points from 95.8% at September 30, 2018, to 93.3% at September 30, 2019, and the collection of previously recorded bad debts of $2.6 million in the third quarter of 2018 due to a tenant settlement.

現在轉向本季的房地產水平結果。我們已在收益發布和補充資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。預計 2019 年第三季的相同物業基礎上，物業現金基礎淨營業收入 (NOI) 較 2018 年第三季下降 7.1%。下降的主要原因是同店入住率從2018年9月30日的95.8%下降250個基點至2019年9月30日的93.3%，以及第三季度收回之前記錄的壞賬260萬美元2018年由於租戶和解。

On the property operating expense front, we incurred increases in real estate taxes, repairs and maintenance and insurance costs, offset by a reduction in utilities of approximately $612,000, mainly due to the efforts of RMR's corporate engineering and sustainability team that Chris previously mentioned.

在物業營運費用方面，我們的房地產稅、維修和保養以及保險成本有所增加，但公用事業費用減少了約612,000 美元，這主要歸功於Chris 之前提到的RMR 企業工程和永續發展團隊的努力。

I'd like to take a moment to highlight the efforts of RMR's real estate tax abatement program, through which its managed companies benefit from aggressive pricing due to the size of the RMR managed companies platform. Over the past 5 years, this program has successfully reduced aggregate assessed value by $1 billion for all companies and has generated real estate tax savings in excess of $20 million. OPI's benefit from this program over the past 5 years is approximately $700 million in assessed value reductions and real estate tax savings in excess of $13 million.

我想花點時間強調一下 RMR 房地產稅減免計劃的努力，透過該計劃，其管理的公司由於 RMR 管理的公司平台的規模而受益於積極的定價。在過去 5 年裡，該計劃已成功為所有公司減少了 10 億美元的總評估價值，並節省了超過 2,000 萬美元的房地產稅。在過去 5 年中，OPI 從該計劃中獲得的收益約為 7 億美元的評估值減少和超過 1,300 萬美元的房地產稅節省。

I will now switch focus to discuss capital and ongoing deleveraging efforts. We spent $27 million on recurring capital during the third quarter, including $11 million on building improvements and $16 million on tenant improvements and leasing costs. Our recurring capital is below our 2019 estimate, mainly due to the timing of leasing capital. This has created greater cushion in our current CAD payout ratio than our target payout ratio of 75%. As of quarter end, we had approximately $56.5 million of unspent leasing-related capital obligations, of which 45% represents tenant managed TIs and $17 million cannot be spent until future years.

我現在將重點討論資本和正在進行的去槓桿化努力。第三季我們在經常性資本上花費了 2,700 萬美元，其中 1,100 萬美元用於建築改善，1,600 萬美元用於租戶改善和租賃成本。我們的經常性資本低於 2019 年的預期，主要是由於租賃資本的時間安排。這為我們目前的加幣支付率創造了比我們 75% 的目標支付率更大的緩衝。截至季末，我們有約 5,650 萬美元的未動用租賃相關資本負債，其中 45% 代表租戶管理的 TI，1,700 萬美元要到未來幾年才能動用。

Lastly, as it relates to capital expenditures, it is important to note that we have eliminated approximately $87 million of future capital over the next 5 years from properties we have sold during 2019. As mentioned on last quarter's call, 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. At September 30, OPI had $210 million outstanding on our $750 million revolving credit facility. During the quarter, we repaid the $170 million remaining on our term loan and repaid our $350 million unsecured senior notes that were due in August 2019, with proceeds from asset sales and borrowings under our revolving credit facility.

最後，由於與資本支出相關，值得注意的是，我們從 2019 年出售的房產中消除了未來 5 年內約 8,700 萬美元的未來資本。正如上季電話會議中所提到的，7 月份，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。截至 9 月 30 日，OPI 的 7.5 億美元循環信貸額度中仍有 2.1 億美元未償還。在本季度，我們償還了剩餘的 1.7 億美元定期貸款，並償還了 2019 年 8 月到期的 3.5 億美元無擔保高級票據，收益來自資產出售和循環信貸額度下的借款。

As David previously stated, we are pleased to announce OPI's net debt to annualized adjusted EBITDAre is within our long-term target range and ended the quarter at 6.2x. We currently have $185 million outstanding on our revolving credit facility, which we plan to reduce with the proceeds from the properties currently under agreement to sell.

正如 David 之前所說，我們很高興地宣布 OPI 的淨債務與年化調整後 EBITDA 之比在我們的長期目標範圍內，本季結束時為 6.2 倍。目前，我們的循環信貸額度尚未償還 1.85 億美元，我們計劃以目前協議出售的房產收益來減少這筆金額。

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

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) The first question will be from Mitch Germain with JMP Securities.

（操作員說明）第一個問題將由 JMP 證券公司的 Mitch Germain 提出。

You previously had talked about year-end occupancy level, I think it was in like the mid-91% area. I know you've got a pretty elevated amount of expirations in the fourth quarter for just a traditional quarter. I guess more than next year's number. How do we think about how that plays out over the course of the next couple of months?

您之前談到了年末的入住率，我認為大概是在91%左右的區域。我知道，與傳統季度相比，第四季的到期數量相當多。我猜比明年的數字還要多。我們如何看待接下來幾個月的情況？

This is Chris. I think the way we want to look at that is over the next 4 quarters, we have about 2.7% of revenue that'll expire due to tenant vacancy. Roughly $1.5 million of that is revenue in 2019. And so as noted in our remarks earlier, we're in active discussions with tenants that represent about 2.1 million square feet with absorption potential of 336,000 square feet. So we see kind of that as a measure to help drive occupancy.

這是克里斯。我認為我們想要看待的方式是在接下來的 4 個季度中，我們大約 2.7% 的收入將因租戶空置而到期。其中約 150 萬美元是 2019 年的收入。正如我們先前的評論中所指出的，我們正在與佔地約 210 萬平方英尺、吸收潛力為 336,000 平方英尺的租戶進行積極討論。因此，我們認為這是一種有助於提高入住率的措施。

Yes. So Mitch, as we finish the year, we expect that we're going to have some tenants move out, and assuming no new absorption, we could have about 100, 120 basis points of pressure on occupancy at year-end and then maybe another 120 basis points in 2020.

是的。因此，米奇，當我們今年結束時，我們預計會有一些租戶搬出，假設沒有新的吸收，年底時我們的入住率可能會面臨約100、120 個基點的壓力，然後可能會出現另一個基點的壓力。2020年 增長120個基點。

That's helpful. David, I really appreciate all the color on asset sales. I think some of the sales that you had mentioned that were completed were part of the original FPO deleveraging plan. So I guess what I'm trying to figure out is, as of last quarter, you said you've got about $630 million of sales that were targeted for the SIR-GOV merger, and I'm just kind of curious where that $630 million stands. Or has that $630 million changed?

這很有幫助。大衛，我真的很欣賞資產出售的所有色彩。我認為你提到的一些已完成的銷售是最初的 FPO 去槓桿計劃的一部分。所以我想我想弄清楚的是，截至上個季度，您說 SIR-GOV 合併的目標銷售額約為 6.3 億美元，我只是有點好奇這 630 美元在哪裡萬站。或者說那 6.3 億美元已經改變了嗎？

So Mitch, in the number I quoted, the $761 million, roughly $195 million of that completed the deleveraging from the First Potomac acquisition. The balance is associated with deleveraging from the merger with SIR. We have, in addition to the 10 properties we have under agreement to sell for $135.9 million, we have another 8 buildings that we are actively marketing, which would have proceeds of anywhere from, call it, $50 million to $100 million. We've also identified a few other properties that would be targeted as part of our capital recycling program, where we are talking with brokers, evaluating their marketing plans and trying to decide who we might want to hire to sell those assets.

所以米奇，在我引用的數字中，7.61 億美元，其中約 1.95 億美元完成了 First Potomac 收購的去槓桿化。此平衡與與 SIR 合併的去槓桿化有關。除了協議以 1.359 億美元出售的 10 處房產外，我們還有另外 8 棟正在積極行銷的建築，這些建築的收益從 5,000 萬美元到 1 億美元不等。我們還確定了一些其他財產，這些財產將作為我們資本回收計劃的一部分，我們正在與經紀人交談，評估他們的行銷計劃，並試圖決定我們可能想要雇用誰來出售這些資產。

Excellent. That's great color. My last question is -- the February notes that are coming due in 2020, I think it's $400 million at 3.6% coupon, I'm curious about what your plan is for that.

出色的。那顏色真棒。我的最後一個問題是——2020 年到期的 2 月票據，我認為票面利率為 3.6%，金額為 4 億美元，我很好奇你們對此有何計劃。

This is Matt. So today, we have $185 million outstanding on our line of credit. We have about $136 million of properties under agreement to sell. So we have plenty of capacity on our line of credit to pay down those $400 million of notes coming due in February.

這是馬特。因此，今天我們的信用額度中有 1.85 億美元的未償債務。我們有約 1.36 億美元的待售房產。因此，我們的信用額度有足夠的能力來償還 2 月到期的 4 億美元票據。

So the goal is to pay them off rather than to reissue something?

那麼我們的目標是還清他們的錢而不是重新發行一些東西？

At the current moment, yes.

目前來看，是的。

The next question comes from Michael Carroll with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場部的麥可‧卡羅爾。

This is Jason on for Mike. I'm just wondering, what are the expectations for closing of these additional dispositions? And will the properties that are still under agreement, are you planning on having those closed by year-end? Or are some of those going to be pushed into 2020?

這是傑森替麥克發言。我只是想知道，完成這些額外處置的期望是什麼？仍在協議中的房產，您是否計劃在年底前關閉？或者其中一些將被推遲到 2020 年？

Yes, good questions. So the properties that we have under agreement are all in various stages of diligence right now. I think the vast majority would close by year-end, but we have a couple that could close in January or February. But I would expect that assuming diligence completes as expected, they will all be closed by the time we have our fourth quarter earnings call. It's hard to say on the stuff that we're marketing. I think the real takeaway is that we have achieved our target leverage. We are now more focused on replacing assets as we sell assets. So we are actively looking to buy properties and to do it in a way that increases our cash available for distribution.

是的，好問題。因此，我們協議擁有的財產目前都處於不同的盡職調查階段。我認為絕大多數將在年底前關閉，但我們有一些可能在一月或二月關閉。但我預計，假設盡職調查按預期完成，那麼在我們召開第四季財報電話會議時，這些項目都將結束。很難說我們正在行銷的東西。我認為真正的收穫是我們已經實現了目標槓桿。我們現在在出售資產時更注重更換資產。因此，我們正在積極尋求購買房產，並以增加可分配現金的方式進行購買。

Got you. So the additional properties that are being marketed then, we shouldn't necessarily expect those to come in a big chunk like you've been doing over the last few quarters, that might be a little more opportunistic and not all at once?

明白你了。因此，當時正在銷售的其他房產，我們不一定會像過去幾季那樣大量出現，這可能會更有機會主義一些，而不是一下子全部出現？

Yes. I think that's generally correct. I mean what we have marketing right now is not what I would consider material. So it's not going to have a big impact on FFO or CAD. And assuming we are successful in identifying assets to buy, you will see us begin to replace that FFO and CAD.

是的。我認為這通常是正確的。我的意思是，我們現在的行銷並不是我認為的實質內容。所以它不會對 FFO 或 CAD 產生太大影響。假設我們成功地確定了要購買的資產，您將看到我們開始取代 FFO 和 CAD。

Okay. And then last question. So now that you're turning your eye towards deployment, just wondering kind of what's your plan on the acquisition front, what type of capital recycling opportunities you're seeing in the market, and if there's any specific markets that specifically are catching your eye.

好的。然後是最後一個問題。因此，現在您將目光轉向部署，只是想知道您在收購方面的計劃是什麼，您在市場上看到什麼類型的資本回收機會，以及是否有任何特定市場特別吸引您的注意。

We are predominantly focused on live-work-play markets, where we believe there's employment and population growth that will help drive our ability to grow rents over time. Those tend to be markets like a -- Southeast markets like North Carolina, some of the -- Texas markets like Austin. Those are the types of markets that we find attractive right now, mostly because we think we can grow rents over time, which we think is important.

我們主要關註生活-工作-娛樂市場，我們相信那裡的就業和人口成長將有助於推動我們隨著時間的推移提高租金的能力。這些市場往往是像北卡羅來納州這樣的東南市場，以及像奧斯汀這樣的德州市場。這些是我們目前認為有吸引力的市場類型，主要是因為我們認為我們可以隨著時間的推移增加租金，我們認為這一點很重要。

Our next question comes from Adam Gabalski with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Adam Gabalski。

Just as you've gotten a little bit deeper into the asset disposition plan, can you just talk a little bit about what you're seeing as far as pricing relative to your initial expectations? Did it come in a little above? A little below? Or sort of roughly in line with what you were expecting?

正如您對資產處置計劃有了更深入的了解一樣，您能否談談您所看到的相對於您最初預期的定價情況？它進來了嗎？下面一點？或大致符合您的預期？

Well, I think when we first started talking about our disposition program, we had talked about selling assets at an average cap rate of between 7% and 7.5% and what we have sold year-to-date at a 5.6% cap rate. So I think we've been reasonably pleased with the pricing for the assets we've sold.

嗯，我想當我們第一次開始談論我們的處置計劃時，我們討論過以 7% 至 7.5% 的平均上限利率出售資產，以及我們今年迄今以 5.6% 的上限利率出售的資產。因此，我認為我們對所出售資產的定價相當滿意。

Great. And then just one more. I know you talked a little bit about the moving pieces for occupancy at year-end and into 2020. Are there any major known move-outs over the next 12 months, where the tenant's already communicated to you that they're planning to vacate, that are going to become potential holes in the portfolio?

偉大的。然後還有一個。我知道您談到了年底和 2020 年入住率的變化。未來 12 個月內是否有任何已知的重大搬遷，租戶已向您傳達他們計劃搬出，這將成為投資組合中的潛在漏洞？

Yes. I think Chris talked about approximately 2.7% of rents would be expiring over the next 12 months that we think are with tenants that will vacate. Approximately 1.5% of that would be in the fourth quarter with the balance being in 2020.

是的。我認為 Chris 談到大約 2.7% 的租金將在未來 12 個月內到期，我們認為這些租戶將搬出去。其中約 1.5% 將在第四季度完成，其餘部分將在 2020 年完成。

(Operator Instructions) The next question comes from Bryan Maher with B. Riley FBR.

（操作員說明）下一個問題來自 Bryan Maher 和 B. Riley FBR。

A lot of helpful information there. On the dispositions that you have under contract, are they also at a similar, roughly 5.6% cap rate, or something different?

那裡有很多有用的信息。關於您根據合約所擁有的配置，它們的上限利率是否也相似（大約為 5.6%），還是有所不同？

The 5.6% cap rate includes those properties that are under purchase and sale agreement currently.

5.6%的上限利率包括目前處於買賣協議的房產。

Okay. Great. And then on your balance sheet, with leverage now down around 6.2x, headed, it seems, closer to 6x. I'm assuming that secures your investment-grade rating on the REIT?

好的。偉大的。然後在你的資產負債表上，槓桿率現在下降到 6.2 倍左右，似乎接近 6 倍。我假設這可以確保您對房地產投資信託基金的投資等級評級？

Yes. S&P published a report on us last week reaffirming our investment-grade rating with a stable outlook. We expect Moody's to go to committee in the next month or so. And that's where we are currently.

是的。標準普爾上週發布了一份關於我們的報告，重申我們的投資等級評級，前景穩定。我們預計穆迪將在下個月左右進入委員會。這就是我們目前的處境。

Okay. And then can you talk a little bit about what the potential for rent increases are on the portfolio once the dispositions are completed, as we look out to 2020 and 2021?

好的。然後，您能否談談一旦處置完成，我們展望 2020 年和 2021 年，投資組合租金上漲的潛力有多大？

Yes. I mean I think that we're still looking at that 2% to 3%, which is the number that we've continued to talk about. I think that's consistent kind of with what we're seeing with just the overall roll up in rent with leases that are being completed.

是的。我的意思是，我認為我們仍在關注 2% 到 3%，這是我們一直在討論的數字。我認為這與我們所看到的與正在完成的租賃的租金總體上漲情況一致。

Yes, Bryan, a lot of that depends on how the economy continues to perform. I mean I read a piece this morning where an economist is expecting continued growth in GDP over the next 3 to 5 years. If that is true and plays out that way, that will help us continue to drive rents. But if you see a contraction in the business cycle quicker than that, that will obviously have pressure on rents. To kind of circle back on the investment-grade rating, Moody's has not been clear with us as to how they expect committee to go. We feel like we've done what they've asked of us to do. Our leverage is well aligned, and we're turning our eyes towards growth. So we're relatively optimistic, but we still -- we obviously don't control what Moody's decides to do with our rating.

是的，布萊恩，這在很大程度上取決於經濟的持續表現。我的意思是，我今天早上讀到一篇文章，其中一位經濟學家預計 GDP 在未來 3 到 5 年內將持續成長。如果這是真的並且以這種方式發揮作用，這將有助於我們繼續推高租金。但如果你看到商業週期收縮的速度比這更快，那顯然會對租金造成壓力。回到投資等級評級，穆迪尚未向我們明確說明他們期望委員會如何進行。我們覺得我們已經完成了他們要求我們做的事情。我們的槓桿作用很好，我們正在將目光轉向成長。因此，我們相對樂觀，但我們仍然 - 顯然我們無法控制穆迪決定如何處理我們的評級。

Okay. And then kind of lastly for me, a 2-part question. What is the supply outlook looking like in your key markets? And where do you see the biggest opportunities over the next 12 to 18 months to drive occupancy higher?

好的。最後對我來說，這是一個由兩個部分組成的問題。您的主要市場的供應前景如何？您認為未來 12 至 18 個月內提高入住率的最大機會在哪裡？

Well, I would say there's 1 market in the country where there is supply growth that could have a negative impact on us over the next, call it, 3 years, and that's Sacramento, where there's a couple of buildings being built downtown. That's really the only market that we have exposure to with increasing supply. So I think that is why, in Chris's comments, we're relatively bullish on our ability to grow rents.

好吧，我想說，這個國家有一個市場的供應增長可能會對我們在未來（稱之為三年）產生負面影響，那就是薩克拉門托，市中心正在建造幾座建築物。這確實是我們接觸到的供應量不斷增加的唯一市場。所以我認為這就是為什麼在克里斯的評論中我們相對看好我們增加租金的能力。

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

女士們先生們，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. When we announced our merger with Select Income REIT, we said we would sell assets to reduce our leverage ratio to between 6 and 6.5x, and we have done exactly that. We are now transitioning our attention to a capital recycling program that we expect will create long-term dividend growth and positively reshape our portfolio. This is in addition to our continued commitment to successfully operating our properties, renewing leases, growing rents and leasing vacant space across our portfolio. Thank you for joining us today. Operator, that concludes the call.

謝謝你，接線生。當我們宣布與 Select Income REIT 合併時，我們表示將出售資產以將槓桿率降低至 6 至 6.5 倍，而我們也確實做到了。我們現在正在將注意力轉向資本回收計劃，我們預計該計劃將創造長期股息成長並積極重塑我們的投資組合。除此之外，我們也持續致力於成功營運我們的物業、續約租約、增加租金和租賃我們投資組合中的空置空間。感謝您今天加入我們。接線員，結束通話。

And thank you, sir. The call has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝您，先生。通話現已結束。感謝您參加今天的演講。您現在可以斷開連線。