Office Properties Income Trust (OPI) 2019 Q4 法說會逐字稿

Good day. And welcome to the Office Properties Income Trust Fourth Quarter 2019 Financial Results Conference call. (Operator Instructions) Please note, this event is being recorded.

再會。歡迎參加 Office Properties Income Trust 2019 年第四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 fourth quarter and year ended December 31, 2019, followed by 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的業務以及截至 2019 年 12 月 31 日的第四季度和年度業績的詳細信息，然後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, Thursday, February 20, 2020, 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（2020 年 2 月 20 日星期四）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，您可以透過我們的網站 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, adjusted EBITDA 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 CAD, are available in our supplemental operating and financial data package, which also can be found on our website. In addition, we will be providing guidance on this call, including normalized FFO. We are not providing a reconciliation of these non-GAAP measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all such as gains and losses or impairment charges related to the disposition of real estate.

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）、調整後 EBITDA 和現金制淨營業收入（或現金制 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。此外，我們也將就本次電話會議提供指導，包括規範化的 FFO。作為我們指導的一部分，我們不會提供這些非公認會計原則措施的調節，因為如果沒有不合理的努力，就無法獲得此類調節所需的某些信息，或者根本無法獲得與房地產處置相關的損益或減損費用。

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 2019 fourth quarter earnings call for Office Properties Income Trust. This morning, we reported normalized FFO of $1.38 per share, which beat consensus estimates for the quarter. Matt will review our financial results in more detail shortly and will also provide financial guidance for the first time in OPI's history. We hope this additional disclosure will be helpful. We also appreciate the continued feedback and look forward to further engagement.

謝謝你，奧利維亞，早安。歡迎參加 Office Properties Income Trust 2019 年第四季財報電話會議。今天早上，我們報告標準化 FFO 為每股 1.38 美元，超出了本季度的普遍預期。Matt 很快將更詳細地審查我們的財務業績，並將在 OPI 歷史上首次提供財務指導。我們希望這項額外的披露會有所幫助。我們也感謝持續的回饋並期待進一步的參與。

Heading into 2019, we set specific expectations for asset sales, our target leverage, expected year-end occupancy and full year leasing spreads. And in all cases, we outperformed these expectations. OPI's principal goal was to rightsize leverage following the merger with select income REIT. We announced plans to sell approximately $750 million of assets to reduce leverage to a targeted net debt-to-EBITDA range of 6 to 6.5x.

進入2019年，我們對資產銷售、目標槓桿率、預期年末入住率和全年租賃利差設定了具體預期。在所有情況下，我們的表現都超出了這些預期。OPI 的主要目標是在與精選收入 REIT 合併後調整槓桿率。我們宣布計劃出售約 7.5 億美元的資產，以將槓桿率降低至目標淨債務與 EBITDA 比率為 6 至 6.5 倍。

For the full year, we sold $848.9 million of properties, plus we opportunistically sold all of our common shares in the RMR Group for $104.7 million in net proceeds, resulting in more than $950 million in aggregate asset sales. For the 58 properties we sold in 2019, the average cap rate was 5.7% for properties with an average age of 21 years and average occupancy of 70% and an average remaining lease term of 4.7 years. As a result of these asset sales, we have reduced leverage to below our targeted range. Our investment-grade ratings have been reaffirmed with stable outlooks. We improved key portfolio metrics and are well positioned to reenter the acquisition market.

全年，我們出售了 8.489 億美元的房產，此外，我們還趁機出售了 RMR 集團的所有普通股，獲得了 1.047 億美元的淨收益，總計資產銷售總額超過 9.5 億美元。在我們2019年出售的58處房產中，平均房齡為21年、平均入住率為70%、平均剩餘租賃期為4.7年的房產的平均上限率為5.7%。由於這些資產出售，我們已將槓桿率降至目標範圍以下。我們的投資等級已得到重申，前景穩定。我們改進了關鍵的投資組合指標，並做好了重新進入收購市場的準備。

As it relates to occupancy and leasing spreads, we set expectations to end 2019 with occupancy at 91.5% and for new and renewal leasing spreads to be flat for the full year. We are happy to report that we ended 2019 with occupancy at 92.4%, which is 90 basis points higher than expected, and our total leasing for the year included more than 2.9 million square feet with new and renewal leases for a roll-up in rent of 4.2%. Chris will provide more detail on our leasing activity shortly.

由於與入住率和租賃利差相關，我們預計 2019 年底入住率為 91.5%，全年新租和續租租賃利差將持平。我們很高興地報告，截至 2019 年，我們的入住率為 92.4%，比預期高出 90 個基點，今年的總租賃面積包括超過 290 萬平方英尺的新租約和續租租約，以增加租金4.2% 。克里斯將很快提供有關我們租賃活動的更多詳細資訊。

As a result of achieving our target leverage range, we have pivoted asset sales to a capital recycling strategy that we believe will allow us to fund acquisitions with asset sales, while maintaining leverage within our targeted range. We also believe our capital recycling strategy will position us to further improve key portfolio metrics, such as average property age and weighted average lease term, improve our prospects for tenant retention and position OPI to grow cash available for distribution or CAD.

由於實現了我們的目標槓桿範圍，我們已將資產銷售轉向資本回收策略，我們相信這將使我們能夠透過資產銷售為收購提供資金，同時將槓桿率維持在我們的目標範圍內。我們也相信，我們的資本回收策略將使我們能夠進一步改善關鍵的投資組合指標，例如平均房產年齡和加權平均租賃期限，改善我們保留租戶的前景，並使OPI 能夠增加可用於分配或加幣的現金。

Our strategy will principally focus on selling properties with high capital requirements and to acquire properties with low ongoing capital needs. Since capital spending can be uneven, our investment analysis will focus on the 5-year average cash contribution, which is NOI minus capital expenditures for both asset sales and acquisitions.

我們的策略將主要側重於出售資本要求高的房產，並收購持續資本需求低的房產。由於資本支出可能不均衡，我們的投資分析將重點放在 5 年平均現金貢獻，即 NOI 減去資產出售和收購的資本支出。

So far in the first quarter of 2020, we have sold or entered agreements to sell 6 properties for approximately $85 million that have an average age of 22 years, a weighted average lease term of 6 years and a 5-year average cash contribution yield of approximately 4%. This well positions OPI to acquire higher quality properties with low capital needs at competitive cap rates of around 6% and grow CAD. Although this may be dilutive to normalized FFO, it will be net asset value-accretive, and we believe positioning the company for dividend growth is the right focus for OPI and its shareholders.

到目前為止，2020 年第一季度，我們已出售或簽訂協議出售6 處房產，價格約為8,500 萬美元，這些房產的平均房齡為22 年，加權平均租賃期為6 年，5 年平均現金貢獻收益率為約4%。這使得 OPI 能夠以較低的資本需求、具有競爭力的 6% 左右的資本化率收購更高品質的房產，並增加加幣。儘管這可能會稀釋正常化的 FFO，但它將增加淨資產價值，我們認為，將公司定位於股息成長是 OPI 及其股東的正確關注點。

We have been actively underwriting potential acquisition opportunities and believe that acquiring properties that meet our investment criteria while executing our capital recycling program will require discipline. As stated on earlier earnings calls, our acquisition criteria is for properties with an average effective age of 10 years or less that have lease terms of 7 years or longer and are located in markets where we believe we can grow rents over time and where we also believe our prospects for renewing tenants at least once are high.

我們一直在積極承銷潛在的收購機會，並相信在執行我們的資本回收計劃的同時收購符合我們投資標準的房產需要遵守紀律。如同先前的財報電話會議中所述，我們的收購標準是平均有效年齡為10 年或以下、租賃期限為7 年或更長的房產，並且位於我們認為可以隨著時間的推移增加租金的市場，而我們也可以在這些市場中購買房產。相信我們至少續約一次租戶的前景很高。

We also expect our geographic diversification will evolve as we enter new markets and exit existing markets based upon our view of real estate fundamentals and on economic and demographic trends.

我們也預計，根據我們對房地產基本面以及經濟和人口趨勢的看法，隨著我們進入新市場和退出現有市場，我們的地域多元化將會發展。

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

我現在將電話轉給 Chris Bilotto，以審查 OPI 的營運和租賃活動。

Thank you, David, and good morning, everyone. As David mentioned, 2019 was an active year for leasing and property management as we work to reshape our portfolio and achieve the best operating results. We closed the year with leasing activity covering 2.9 million square feet for a weighted average roll up in rent of 4.2%, a weighted average lease term of 8.6 years and leasing concessions and capital commitments of $3.08 per square foot per lease year.

謝謝大衛，大家早安。正如 David 所提到的，2019 年是租賃和物業管理領域活躍的一年，我們致力於重塑我們的投資組合併實現最佳營運績效。我們以 290 萬平方英尺的租賃活動結束了這一年，加權平均租金上漲了 4.2%，加權平均租賃期限為 8.6 年，租賃優惠和資本承諾為每個租賃年每平方英尺 3.08 美元。

Through our deleveraging plan, we exited a few markets for an overall improvement to our geographic diversification and sold buildings with an average age of 21 years for an overall improvement to our portfolio now with an average age of 16.7 years.

透過我們的去槓桿化計劃，我們退出了一些市場，以全面改善我們的地理多元化，並出售了平均年齡為 21 年的建築物，以全面改善我們的投資組合，目前平均年齡為 16.7 年。

As we look ahead into 2020, we will continue our focus to further improve key metrics to our portfolio. On a same-store basis, at year-end, we are targeting occupancy of 92% to 93%, with the roll-up in rents of 2% to 3%.

展望 2020 年，我們將繼續專注於進一步改善我們投資組合的關鍵指標。以同店計算，年底我們的目標入住率為 92% 至 93%，租金上漲 2% 至 3%。

Turning to the quarter. As of December 31, 2019, OPI's portfolio consisted of 189 properties, totaling 25.7 million square feet, with a weighted average lease term of 5.7 years. In the fourth quarter, we entered into new and renewal leases for 779,000 square feet at weighted average rents that were 0.4% above prior rents, with a weighted average lease term of 7.1 years and leasing concessions and capital commitments of $2.60 -- excuse me, $2.86 per square foot per lease year.

轉向季度。截至2019年12月31日，OPI的投資組合包括189處房產，總面積為2,570萬平方英尺，加權平均租賃期限為5.7年。第四季度，我們簽訂了 779,000 平方英尺的新租約和續約租約，加權平均租金比之前的租金高出 0.4%，加權平均租期為 7.1 年，租賃優惠和資本承諾為 2.60 美元——對不起，每個租賃年每平方英尺2.86 美元。

Total portfolio occupancy has increased by 140 basis points year-over-year to 92.4%. Our current leasing pipeline of 2.1 million square feet includes 560,000 square feet that can continue to absorb vacant space across the portfolio.

投資組合總入住率年增 140 個基點，達到 92.4%。我們目前的 210 萬平方英尺的租賃儲備中包括 560,000 平方英尺，可以繼續吸收整個投資組合中的空置空間。

As discussed on last quarter's call, our property in Reston, Virginia was vacated during the fourth quarter, which represented 1.3% of our total annualized rental revenue. The property is located in a prominent and growing Northern Virginia submarket and benefits from its access to the silver line, the Dulles International Airport and nearby live, work, play amenities. This vacancy has created a strategic opportunity for us to reposition the property for a roll-up in rent with minor building capital required to improve the property for leasing. The submarket is expected to outperform the broader Northern Virginia market due to an expanding defense budget and strong growth from technology companies specializing in cloud computing and cybersecurity. We look forward to providing updates on the progress of leasing efforts in 2020.

如同上季電話會議所討論的，我們在維吉尼亞州雷斯頓的房產在第四季被騰空，占我們年化租金總收入的 1.3%。該物業位於維吉尼亞州北部一個著名且不斷發展的子市場，受益於其通往銀線、杜勒斯國際機場和附近生活、工作、娛樂設施的便利。這一空缺為我們創造了一個策略機會，可以重新定位該房產，以增加租金，並需要少量的建築資本來改善租賃房產。由於國防預算不斷擴大以及專門從事雲端運算和網路安全的科技公司的強勁成長，預計該子市場的表現將優於更廣泛的北維吉尼亞市場。我們期待提供 2020 年租賃工作進展的最新資訊。

To highlight a few fourth quarter leasing transactions. In Lakewood, Colorado, we executed a 5-year lease extension on a 167,000 square feet with the GSA, which included capital of only $0.39 per square foot per lease year. In Boise, Idaho, we renewed the GSA in 2 full buildings with a total of 151,000 square feet. The initial request from the GSA was to downsize of the short-term extension upon its lease expiration in 2021 due to several agencies occupying the building under one primary lease.

重點介紹第四季的幾項租賃交易。在科羅拉多州萊克伍德，我們與 GSA 簽訂了 167,000 平方英尺的 5 年租約延期協議，其中每個租賃年每平方英尺的資本僅為 0.39 美元。在愛達荷州博伊西，我們更新了 2 棟總面積為 151,000 平方英尺的完整建築的 GSA。GSA 最初的要求是在 2021 年租約到期後縮小短期延期的規模，因為幾家機構根據一項主要租約佔用了該建築。

Our GSA asset management and leasing team prepared an unsolicited utilization plan to provide the GSA a more holistic look at the building. This proactive approach resulted in a successful completion of an 11-year extension for 100% of both buildings. This transaction highlights the benefit of the RMR platform, whose asset management team includes former GSA employees who maintain strong relationships with the GSA. The team's experience and expertise with the GSA process helped turn an objection and potential problem into a long-term lease commitment.

我們的 GSA 資產管理和租賃團隊主動準備了一份利用計劃，以便 GSA 更全面地了解建築物。這種積極主動的方法成功地完成了兩棟建築 100% 的 11 年延期。此交易凸顯了 RMR 平台的優勢，其資產管理團隊包括與 GSA 保持密切關係的前 GSA 員工。該團隊在 GSA 流程方面的經驗和專業知識有助於將異議和潛在問題轉化為長期租賃承諾。

Turning to acquisitions. In the fourth quarter, we acquired a 3,300 square foot land parcel for $2.9 million and are under agreement for a 13,500 square-foot building for $11.5 million, both of which are located near or adjacent to our existing property at 251 Causeway in Boston. This area is a thriving submarket within the downtown Boston core, near 2 million square feet of newly delivered mixed-use development, the north station major transportation hub, the lively northern neighborhood and the TD Garden, the city's main indoor sports and entertainment facility. These acquisitions are strategic and provide flexibility for future value creation and NOI growth by repositioning our building, either through a tear down and rebuild beginning in 2022 or through upgrading the existing building as early as 2021.

轉向收購。第四季度，我們以290 萬美元的價格收購了一塊3,300 平方英尺的地塊，並同意以1150 萬美元的價格購買一棟13,500 平方英尺的建築，這兩處建築均位於我們位於波士頓251 Causeway 的現有房產附近或附近。該區域是波士頓市中心核心區的一個繁榮子市場，擁有近 200 萬平方英尺的新交付綜合用途開發項目、北站主要交通樞紐、熱鬧的北部社區以及該市主要室內運動和娛樂設施 TD 花園。這些收購具有策略性，透過重新定位我們的建築（從 2022 年開始拆除並重建，或最早在 2021 年升級現有建築），為未來的價值創造和 NOI 成長提供靈活性。

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 fourth quarter and year ended December 31, 2019, include the impact of the merger with Select Income REIT or SIR, which closed on December 31, 2018. In addition, in connection with OPI's deleveraging efforts, we sold $848.9 million of properties during 2019, including $264 million of properties in the fourth 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 third quarter of 2019.

謝謝克里斯，大家早安。OPI 截至 2019 年 12 月 31 日的第四季和年度業績包括與 2018 年 12 月 31 日完成的 Select Income REIT 或 SIR 合併的影響。此外，結合 OPI 的去槓桿化努力，我們在 2019 年出售了 8.489 億美元的房產，其中第四季度出售了 2.64 億美元的房產。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集中在與 2019 年第三季相比的變化。

Normalized FFO for the quarter was $66.4 million or $1.38 per share, which beat consensus. This compares to normalized FFO of $69.7 million or $1.45 per share for the third quarter of 2019. The decline in normalized FFO on a sequential basis is mainly the result of our property disposition activity.

本季標準化 FFO 為 6,640 萬美元，即每股 1.38 美元，超出市場預期。相比之下，2019 年第三季標準化 FFO 為 6,970 萬美元，即每股 1.45 美元。正常化 FFO 環比下降主要是我們的財產處置活動的結果。

During the quarter, we recognized a net gain on property sales of $71.6 million, primarily due to a $60 million gain on our opportunistic sale of a property in Houston, Texas in December.

在本季度，我們確認房地產銷售淨收益為 7,160 萬美元，主要是由於我們 12 月在德州休士頓的機會性出售房產獲得了 6,000 萬美元的收益。

G&A expense for the fourth quarter was $7.3 million compared to G&A expense of $8 million for the third quarter of 2019. The decline in G&A expense is mainly the result of the issuance of share-based compensation in the third quarter. Our business management fee expense remained relatively flat on a sequential quarter basis, as the debt repaid with disposition proceeds was offset by appreciation in OPI share price. As a reminder, our business management fee is paid based on the lesser of total market capitalization or assets under management and is currently being paid on total market capitalization. We believe this calculation is indicative of the alignment of interest with shareholders built into our management contract with the RMR Group.

第四季的一般管理費用為 730 萬美元，而 2019 年第三季的一般管理費用為 800 萬美元。G&A費用的下降主要是由於第三季發放股權激勵的結果。我們的業務管理費支出與上一季相比保持相對平穩，因為以處置收益償還的債務被 OPI 股價的升值所抵消。需要提醒的是，我們的業務管理費是根據總市值或管理資產中的較小者支付的，目前是根據總市值支付的。我們相信這項計算顯示我們與 RMR 集團的管理合約中所包含的股東利益是一致的。

Interest expense for the fourth quarter was $30 million compared to interest expense of $32.4 million in the third quarter of 2019. The decline in interest expense is mainly the result of $585 million of debt repayments since July 1, 2019, net of borrowings on our revolving credit facility.

第四季的利息支出為 3,000 萬美元，而 2019 年第三季的利息支出為 3,240 萬美元。利息支出的下降主要是由於自 2019 年 7 月 1 日以來償還了 5.85 億美元的債務（扣除循環信貸額度的借款）。

Turning to property level results for the quarter. For the fourth quarter of 2019, same-property cash basis NOI, pro forma for the SIR merger declined 5.3% compared to the fourth quarter of 2018, mainly driven by the following: a decline in occupancy from 95.2% to 93.3%; $2.2 million of free rent in the fourth quarter of 2019, primarily related to 2 2019 executed lease renewals, one receiving free rent of $309,000 per month through March 2020 and the other receiving free rent of $188,000 per month through December 2019; $2 million of settlement income related to a tenant default and lease restructure recognized in October 2018; and increases in real estate taxes, labor, and insurance costs, partially offset by more significant repairs and maintenance incurred in the fourth quarter of 2018; and savings on our property management fee, primarily due to the free rent mentioned above.

轉向本季的房地產水平結果。2019 年第四季，SIR 合併的同物業現金基礎 NOI 預計較 2018 年第四季下降 5.3%，主要原因如下：入住率從 95.2% 下降至 93.3%； 2019 年第四季免租金為220 萬美元，主要與2019 年執行的2 份租約續約有關，其中一份截至2020 年3 月每月獲得309,000 美元的免費租金，另一份截至2019 年12 月每月獲得188,000 美元的免費租金； 2018 年 10 月確認的與租戶違約和租賃重組相關的 200 萬美元和解收入；房地產稅、勞動力和保險成本的增加，部分被 2018 年第四季發生的更大規模的維修和保養所抵消；以及我們的物業管理費的節省，主要是由於上述免租金。

Turning to capital expenditures and balance sheet metrics. We spent $20.9 million on recurring capital during the fourth quarter, including $10.6 million on building improvements and $10.3 million on leasing capital.

轉向資本支出和資產負債表指標。第四季我們在經常性資本上花費了 2,090 萬美元，其中包括 1,060 萬美元用於建築改善和 1,030 萬美元用於租賃資本。

Our recurring capital spend in 2019 was below our estimate, mainly due to the timing of leasing capital being deferred to 2020, which resulted in a CAD payout ratio of 56% compared to our target payout ratio of 75%. Despite a conservative payout ratio, our dividend yield of 6.8% at year-end remains high compared to the peer group at 4.4%.

我們 2019 年的經常性資本支出低於我們的預期，主要是由於租賃資本的時間延後到 2020 年，導致加幣支付率為 56%，而我們的目標支付率為 75%。儘管派息率保守，但我們年末的股息收益率為 6.8%，與同業 4.4% 的股息收益率相比仍然較高。

Based on our current projections, we expect 2020 recurring capital expenditures to be approximately $110 million, which includes $38 million of speculative leasing capital. Based on these projections, our dividend will be within our targeted range of 75%.

根據我們目前的預測，我們預計 2020 年經常性資本支出約為 1.1 億美元，其中包括 3,800 萬美元的投機租賃資本。根據這些預測，我們的股息將在 75% 的目標範圍內。

As of quarter end, we had approximately $56 million of unspent leasing-related capital obligations, of which 41% represents tenant improvement allowances managed by our tenants and $17.5 million is leasing capital designated in leases for future years.

截至季末，我們有約 5,600 萬美元的未動用租賃相關資本義務，其中 41% 是由租戶管理的租戶改善津貼，1,750 萬美元是未來幾年租賃中指定的租賃資本。

At December 31, we had no amounts outstanding on our $750 million unsecured revolving credit facility, and our net debt to annualized adjusted EBITDAre was 5.9x, which is below our target leverage range. As David mentioned, our investment-grade ratings were reaffirmed during the quarter with stable outlooks.

截至 12 月 31 日，我們的 7.5 億美元無擔保循環信貸額度中沒有未償還金額，我們的淨債務與年化調整後 EBITDA 的比率為 5.9 倍，低於我們的目標槓桿範圍。正如大衛所提到的，我們的投資級評級在本季度得到了重申，前景穩定。

Subsequent to quarter end, we repaid our $400 million of unsecured senior notes due in February with proceeds from fourth quarter and January property sales and borrowings under our revolving credit facility. We currently have $335 million outstanding on our revolving credit facility, which we plan to reduce with the proceeds from 3 properties currently under agreement to sell for an aggregate sales price of $64.3 million, including one property with secured debt in the amount of $13.2 million that will be repaid upon the sale of the property.

季度末後，我們利用第四季度和一月份的房地產銷售收益以及循環信貸額度下的借款償還了 2 月份到期的 4 億美元無擔保優先票據。目前，我們的循環信貸額度尚未償還3.35 億美元，我們計劃透過目前協議出售的3 處房產的收益來減少這筆貸款，總售價為6,430 萬美元，其中一處房產有擔保債務，金額為1,320萬美元，將在出售房產時償還。

Based on our current expectations of our portfolio and the timing of the dispositions currently under agreement to sell, we expect normalized FFO per share to be between $1.30 and $1.33 for the first quarter of 2020. The decline from Q4 2019 normalized FFO of $1.38 per share is mainly driven by the NOI reduction of $3 million from the properties sold in Q4 and another $900,000 from Q1 property sales.

根據我們目前對投資組合的預期以及目前根據出售協議進行的處置時間，我們預計 2020 年第一季每股正常化 FFO 將在 1.30 美元至 1.33 美元之間。正常 FFO 較 2019 年第四季每股 1.38 美元下降，主要是由於第四季度出售的房產 NOI 減少了 300 萬美元，第一季房產銷售又減少了 90 萬美元。

We expect our same-property cash basis NOI to be flat to down 2% as compared to the first quarter of 2019, which is an improvement from the 5.3% decline we reported for the fourth quarter of 2019. As Chris mentioned, we expect same-property occupancy at the end of 2020 to be between 92% and 93%. It is our intent to provide guidance for normalized FFO and same-property cash basis NOI for the next quarter during our earnings calls in 2020.

我們預計同物業現金基礎 NOI 與 2019 年第一季相比將持平至下降 2%，這比我們報告的 2019 年第四季 5.3% 的下降有所改善。正如 Chris 所提到的，我們預計 2020 年底同一房產的入住率將在 92% 至 93% 之間。我們打算在 2020 年的財報電話會議上為下一季的標準化 FFO 和相同財產現金基礎 NOI 提供指引。

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) Our first question comes from Adam Gabalski with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Adam Gabalski。

Definitely appreciate the color on -- and guidance for 1Q '20. Can you just talk about some of the drivers of same-store guidance as you look towards 1Q? And also just throughout the year, just given that you're sort of lapping some easier comps and just kind of walking through some of the biggest moving pieces?

絕對欣賞 20 年第一季的顏色和指導。您能否談談展望第一季時同店指引的一些驅動因素？而且就在這一整年裡，考慮到你正在完成一些更簡單的比賽，並且只是走過一些最大的移動部分？

Yes. I think as we roll forward, our same-store performance from Q4, where we reported a decline of 5.3% to our expectation for Q1 of 2020 of flat to down 2%, there's a couple of major drivers that I talked about in the prepared remarks, one of which was the $2 million of settlement income that was included in Q4 2018 revenue, that was nonrecurring. The other item was free rent. One of the 2 major leases that we executed in 2019 had free rent of $188,000 per month that expired in December 2019. So we'll see the benefit of that cash rent, which is helping the same-store performance in Q1 of '20.

是的。我認為，隨著我們向前推進，我們的同店業績從第四季度開始下降5.3%，而我們對2020 年第一季的預期則持平至下降2%，我在準備好的報告中談到了幾個主要驅動因素其中一項是 2018 年第四季營收中包含的 200 萬美元的非經常性和解收入。另一項是免租金的。我們在 2019 年執行的 2 份主要租約之一每月免租 188,000 美元，於 2019 年 12 月到期。因此，我們將看到現金租金的好處，這有助於 20 年第一季的同店業績。

Got it. And then just on sort of mark-to-market. For 2020, you're sort of targeting a low single-digit sort of back-to-back years in that range. Is that sort of a reasonable run rate for how you should sort of expect it to track kind of longer term? Or are there any sort of onetime large move-outs or renewals that you think are kind of skewing that? Or just kind of how you see that number tracking?

知道了。然後就按市值計價。對於 2020 年，您的目標是連續幾年在該範圍內實現低個位數。對於您應該如何期望它跟踪長期的情況來說，這是一個合理的運行率嗎？或者您認為是否有任何類型的一次性大規模搬遷或續約後扭曲這種情況？或者只是您如何看待該數位追蹤？

Yes. When we look back, I mean, looking back at 2019 year-end, just over 4% and then 2% to 3% in 2020, I think, is indicative of where we see the run rate at least for the foreseeable near future.

是的。當我們回顧過去時，我的意思是，回顧2019 年年底，我認為略高於4%，然後2020 年為2% 至3%，這表明了我們至少在可預見的不久的將來看到的運行率。

Got it. And then just one more quick one for me. Just on the acquisitions and sort of the broader capital recycling and market rotation plan. As far as the acquisition this quarter, would you sort of call that a part of that plan? Or is that sort of like a one-off unique opportunity because it was close to another asset? And just sort of as far as the broader capital rotation, what kind of deal volume are you looking at? What does the pipeline look like? Can you expect that to sort of match dispositions for 2020? And how does that sort of pipeline seem at this point?

知道了。然後對我來說再快一點。只是關於收購以及更廣泛的資本回收和市場輪調計劃。至於本季的收購，您是否認為這是該計劃的一部分？或者這有點像是一次性的獨特機會，因為它靠近另一項資產？就更廣泛的資本輪替而言，您關注的交易量是多少？管道是什麼樣子的？您認為這會是 2020 年的比賽安排嗎？目前這種管道看起來怎麼樣？

Sure. Adam, the acquisitions that Chris talked about were strategic to our property, 251 Causeway. That's a downtown, Boston, located building in the epicenter of an area that's getting a lot of growth. We have an opportunity as we look into 2021, 2022, to reposition that for a significant rent growth. So owning those 2 assets give us substantially greater flexibility in what we do with that property in the future. So I would not consider it part of the capital recycling program.

當然。Adam，Chris 談到的收購對我們的 251 Causeway 房地產具有戰略意義。那是波士頓市中心的一棟建築，位於一個正在快速發展的地區的中心。展望 2021 年、2022 年，我們有機會重新定位，以實現租金的大幅成長。因此，擁有這兩項資產使我們在未來處理該資產時具有更大的靈活性。所以我不會將其視為資本回收計劃的一部分。

As it relates to capital recycling, we have a decent pipeline of potential opportunities. We are being, I think, very thoughtful around our capital allocation and making sure that as we buy potential opportunities, we understand how we are going to fund those with asset sales and what our cost of capital is associated with those asset sales, so that we not only are improving our portfolio metrics in the process, but we are positioning ourselves for growth in cash available for distribution.

由於它與資本回收相關，我們擁有大量潛在機會。我認為，我們對我們的資本配置非常深思熟慮，並確保當我們購買潛在機會時，我們了解我們將如何透過資產出售為這些機會提供資金，以及我們的資本成本與這些資產出售相關，以便我們不僅在此過程中改善了我們的投資組合指標，而且我們也為可分配現金的成長做好了準備。

And I'll give you an example. We've got 6 properties that we've either sold or have under agreement as of the first quarter of 2020, roughly $85 million at a cash contribution yield of 4%. So by selling those assets, we're giving up approximately $3.4 million of free cash flow to pay a dividend. If we acquire $85 million of assets at a 6% cap, we will be picking up $5.1 million of free cash flow, depending upon the level of capital associated with those buildings. That $1.7 million is $0.035 a share in additional CAD that we can use to grow the dividend. So that is the real focus for us as we try to reposition our portfolio, create net asset value accretion and CAD accretion. Does that make sense?

我給你舉個例子。截至 2020 年第一季度，我們已出售或已達成協議的 6 處房產，價值約 8,500 萬美元，現金出資收益率為 4%。因此，透過出售這些資產，我們將放棄約 340 萬美元的自由現金流來支付股息。如果我們以 6% 的上限收購 8,500 萬美元的資產，我們將獲得 510 萬美元的自由現金流，具體取決於與這些建築物相關的資本水準。這 170 萬美元相當於每股 0.035 美元的額外加元，我們可以用它來增加股息。因此，當我們嘗試重新定位我們的投資組合、創造資產淨值增值和加幣增值時，這才是我們真正關注的焦點。那有意義嗎？

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

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

Kind of following up on Adam's question. Can you discuss the kind of anticipated volume that you expect in 2020? I think I might recall you previously saying capital recycling would be about $300 million a year, is that correct? And do you still see that being the case?

有點像亞當的問題的後續。您能談談您預計 2020 年的預期銷售量是多少嗎？我想我可能還記得您之前說過每年的資本回收量約為 3 億美元，對嗎？您仍然認為情況如此嗎？

Yes, it's a good question, Bryan. We've got the $85 million that's currently in process. We are marketing an asset in Northern Virginia right now and are evaluating 20 additional properties for potential disposition. Depending upon what the outcome is of those 20 properties, we could very easily hit $300 million in capital recycling this year. A lot of it's going to depend upon how the markets continue to perform. And frankly, a lot of it's going to depend upon our ability to acquire assets that we think meet our investment criteria.

是的，這是一個很好的問題，布萊恩。我們目前正在處理 8500 萬美元的資金。我們目前正在行銷北維吉尼亞州的一項資產，並正在評估另外 20 處房產以供潛在處置。根據這 20 處房產的結果，我們今年的資本回收很容易達到 3 億美元。這在很大程度上取決於市場的持續表現。坦白說，這在很大程度上取決於我們獲得我們認為符合投資標準的資產的能力。

And kind of to that point, how deep is the market of assets that you're currently looking at? Has it grown? Has it shrunk? Is it 10 properties, is it 80 properties?

就這一點而言，您目前關注的資產市場有多深？它長大了嗎？縮小了嗎？是 10 個屬性，還是 80 個屬性？

It's not 80 properties right now, Bryan, it's probably closer to 10 properties. It's been relatively consistent as we move out of 2019 and into 2020. And so we're -- we remain optimistic. I think the real thing I'd like to highlight is while we're optimistic, we also expect to be disciplined. And we're very focused on what our acquisition criteria is and how we're going to pay for those acquisitions. So -- but no, we're very optimistic that we're off to a good start for 2020.

布萊恩，現在不是 80 處房產，可能接近 10 處房產。隨著 2019 年進入 2020 年，這種情況相對穩定。所以我們——我們保持樂觀。我認為我真正想強調的是，雖然我們很樂觀，但我們也希望受到紀律處分。我們非常關注我們的收購標準是什麼以及我們將如何為這些收購支付費用。所以，但不，我們非常樂觀地認為 2020 年將會有一個好的開始。

Okay. And then just last for me. Given that we're basically done with the kind of large-scale dispositions and you've moved into capital recycling, is it safe to say that OPI kind of stays around $4 billion, $4.5 billion REIT over the next 2 to 3 years? Or do you see an opportunity to take the size of the REIT higher? And if so, kind of when and how?

好的。然後就對我來說最後一次。鑑於我們基本上已經完成了大規模處置，並且您已經開始進行資本回收，是否可以肯定地說 OPI 在未來 2 到 3 年內將保持在 40 億美元、45 億美元左右的 REIT 水平？或者您認為有機會擴大房地產投資信託基金的規模？如果是這樣，什麼時候以及如何？

Bryan, I think it depends a lot on how the share price performs this year as we demonstrate an ability to execute on the capital recycling program and the discipline we show in capital allocation. We are certainly not prepared today to issue common equity to fund growth. We obviously could look at joint ventures. But frankly, we think we have plenty of opportunity to recycle capital and reposition the portfolio and grow CAD without having to really worry about growing the company. Because if we can grow cash available for distribution, while maintaining the same asset level, shareholders will benefit from our ability to increase the dividend.

布萊恩，我認為這在很大程度上取決於今年的股價表現，因為我們表現出了執行資本回收計劃的能力以及我們在資本配置方面表現出的紀律。我們今天當然不准備發行普通股來為成長提供資金。我們顯然可以考慮合資企業。但坦白說，我們認為我們有很多機會回收資本、重新定位投資組合併發展加元，而不必真正擔心公司的發展。因為如果我們能夠增加可供分配的現金，同時保持相同的資產水平，股東將受益於我們增加股利的能力。

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

我們的問答環節到此結束。我想將會議轉回總裁兼執行長戴維·布萊克曼 (David Blackman) 發表閉幕詞。

OPI started 2019 as a new company with increased scale, greater diversification and an evolved investment and operating strategy. It was a year for OPI to present a fresh business plan to the market and, importantly, to deliver on our stated goals. We have repositioned the company with a healthy financial profile, while enhancing our portfolio quality and successfully managing our properties for strong occupancy and rent growth. In 2020, we will continue to focus on executing our business plan of enhancing key portfolio metrics and recycling capital to grow CAD. We believe this strategic focus is important considering OPI's trading discount to our peer group and the meaningful value proposition to our shareholders as we work to narrow that discount. We are dedicated to proving that our strategy involves long-term thoughtful management and a commitment to creating shareholder value. Thank you for joining us today. Operator, that concludes the call.

2019 年開始，OPI 作為一家新公司，規模不斷擴大，更加多元化，投資和營運策略也不斷發展。這一年，OPI 向市場推出了全新的業務計劃，更重要的是，實現了我們既定的目標。我們以健康的財務狀況重新定位了公司，同時提高了我們的投資組合品質並成功管理了我們的物業，以實現強勁的入住率和租金成長。2020 年，我們將繼續專注於執行增強關鍵投資組合指標和回收資本以成長加幣的業務計劃。我們認為，考慮到 OPI 相對於同業的交易折扣以及我們努力縮小折扣範圍時對股東有意義的價值主張，這一戰略重點非常重要。我們致力於證明我們的策略涉及長期深思熟慮的管理和創造股東價值的承諾。感謝您今天加入我們。接線員，結束通話。

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。