Office Properties Income Trust (OPI) 2020 Q3 法說會逐字稿

Good morning and welcome to the Office Properties Income Trust Third Quarter 2020 Earnings Call. (Operator Instructions) Please note this event is being recorded.

早安，歡迎參加 Office Properties Income Trust 2020 年第三季財報電話會議。 （操作員說明）請注意此事件正在被記錄。

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 and Chief Operating Officer, Chris Bilotto. In just a moment they will provide details about our business and our performance for the third quarter of 2020, followed by a question-and-answer session with sell-side analysts.

謝謝大家，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；副總裁兼營運長 Chris Bilotto。稍後他們將提供有關我們的業務和 2020 年第三季業績的詳細信息，然後與賣方分析師進行問答。

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.

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。

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, October 30, 2020, 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.

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 10 月 30 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或 SEC 提交的文件中，您可以從我們的網站 opireit.com 或 SEC 網站存取這些文件。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, cash available for distribution or CAD, adjusted EBITDA and cash basis net operating income or cash basis NOI. A reconciliation of these non-GAAP figures to net income 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、可用於分配的現金或加幣、調整後的 EBITDA 和現金制淨營業收入或現金制 NOI。這些非公認會計準則資料與淨利潤的對帳可在我們的補充營運和財務資料包中找到，這些資料包也可以在我們的網站上找到。

In addition, we will be providing guidance on this call, including normalized FFO and cash basis NOI. We are not providing 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，我們也將就本次電話會議提供指導，包括標準化 FFO 和現金制 NOI。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，例如與房地產處置相關的損益或減值費用。

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, where we are pleased to say that OPI continues to deliver strong operating and financial results.

謝謝你，奧利維亞，早安。歡迎參加 Office Properties Income Trust 第三季財報電話會議，我們很高興地宣布 OPI 將繼續實現強勁的營運和財務業績。

This morning we reported normalized FFO of $1.30 per share, which exceeded our guidance range and consensus estimates for the quarter. Year-over-year, we generated same property cash NOI growth of 1.7% and increased CAD by 15.4%.

今天上午，我們公佈的正常 FFO 為每股 1.30 美元，超出了我們對本季的指導範圍和共識預期。與去年同期相比，我們的房地產現金 NOI 成長 1.7%，加幣成長 15.4%。

The duration of the pandemic and resulting effects on office usage remain uncertain. However, we are encouraged by this quarter's leasing activity having entered 595,000 square feet of new and renewal leases for a 31% roll-up in rent and a weighted average lease term of more than 10 years.

大流行的持續時間以及對辦公室使用的影響仍不確定。然而，本季的租賃活動令我們感到鼓舞，新租賃和續約面積達 595,000 平方英尺，租金上漲 31%，加權平均租賃期限超過 10 年。

Chris will provide more detail on these results, but we are pleased to be able to execute leases for a longer average duration than our portfolios average remaining term.

克里斯將提供有關這些結果的更多詳細信息，但我們很高興能夠執行比我們的投資組合平均剩餘期限更長的平均期限的租賃。

Consolidated portfolio occupancy remains above 91% and we are focused on proactive communication with our tenants to understand their needs, including plans for returning to the office with an overall goal of driving tenant retention.

綜合投資組合入住率維持在 91% 以上，我們專注於與租戶進行主動溝通，以了解他們的需求，包括重返辦公室的計劃，總體目標是提高租戶保留率。

Certain technology companies have made headlines by offering more permanent remote work options at a cost, but we still believe that a hybrid model of both in-person and remote work will suit most general office users. OPIs exposure to technology companies is primarily comprised of hardware tenants that use their space for a mix of office, R&D, assembly and showroom, and accordingly have less ability to allow permanent remote work than an Internet or software company.

某些科技公司透過付費提供更永久的遠距工作選項而成為頭條新聞，但我們仍然相信，面對面和遠端工作的混合模式將適合大多數普通辦公室用戶。 OPI 接觸到的科技公司主要由硬體租戶組成，他們將其空間用於辦公室、研發、組裝和陳列室，因此與互聯網或軟體公司相比，允許永久遠端工作的能力較差。

In addition, our government tenants has many high security or public-facing requirements that restrict a significant move towards remote work. The building of a company culture, collaboration, mentoring and career development is also a key focus for many tenants as they consider long-term plans.

此外，我們的政府租戶有許多高安全性或面向公眾的要求，限制了遠距工作的重大進展。公司文化的建設、協作、指導和職業發展也是許多租戶在考慮長期計劃時的重點。

As Matt would discuss in greater detail, we continue to benefit from our high credit quality tenant base and the strategic nature of our properties as evidenced by our strong rent collection of 99% for the third quarter and granted rent deferrals that are largely unchanged from the second quarter.

正如馬特將更詳細地討論的那樣，我們繼續受益於我們的高信用品質租戶基礎和我們物業的戰略性質，第三季度我們強勁的租金收取率達到99%，並授予租金延期，與去年同期基本上沒有變化，這證明了我們的優勢。第二季。

Our balance sheet remains strong and is well positioned to weather our nation's ongoing economic challenges. Leverage remains at the low end of our targeted range and liquidity improved as a result of our senior note offering where proceeds were used to repay all amounts outstanding on our $750 million unsecured revolving credit facility.

我們的資產負債表依然強勁，能夠很好地應對國家持續的經濟挑戰。槓桿率仍處於我們目標範圍的低端，並且由於我們發行高級票據，流動性得到改善，其中收益用於償還我們 7.5 億美元無擔保循環信貸額度的所有未償還金額。

In October, we completed the previously announced sale of a 4-property business park in Fairfax, Virginia for $25.1 million, increasing sales under our capital recycling program to approximately $110 million. In aggregate, we have sold 10 properties this year that contained approximately 906,000 square feet at an average age of 21 years and average occupancy of 92% and a weighted average lease term of 6.2 years. The sales also eliminated approximately $30.2 million of budgeted capital over the next 5 years and resulted in a 5-year average cash contribution yield of 3.6%.

10 月，我們完成了先前宣布的以 2510 萬美元出售弗吉尼亞州費爾法克斯一處擁有 4 處房產的商業園的交易，將我們的資本回收計劃下的銷售額增加到約 1.1 億美元。今年，我們總共出售了 10 處房產，面積約 906,000 平方英尺，平均樓齡 21 年，平均入住率為 92%，加權平均租賃期為 6.2 年。此次出售還消除了未來 5 年約 3,020 萬美元的預算資本，並導致 5 年平均現金貢獻收益率為 3.6%。

10 properties containing approximately 1.8 million square feet have been added to our capital recycling program, which remains focused on reducing OPI's aggregate capital needs, improving the average age of our properties, better positioning us to increase rents and improving the likelihood of renewing leases all in an effort to grow CAD and our ability to increase the dividend over time.

我們的資本回收計劃已添加10 處房產，面積約180 萬平方英尺，該計劃的重點仍然是減少OPI 的總資本需求、提高我們房產的平均年齡、更好地定位我們以提高租金並提高續租的可能性。努力發展加元以及我們隨著時間的推移增加股息的能力。

As we evaluate the reinvestment of disposition proceeds, we continue to focus on properties that are mission-critical to tenants. This includes single-tenant headquarters and buildings leased to the government. We also favor high security government buildings and tenant uses where remote work is less likely. These types of users may include technology companies with hardware components, life science and medical office buildings.

當我們評估處置收益的再投資時，我們繼續關注對租戶至關重要的房產。這包括單一租戶總部和租賃給政府的建築物。我們也青睞安全性高的政府建築和不太可能進行遠距工作的租戶用途。這些類型的使用者可能包括擁有硬體組件的科技公司、生命科學和醫療辦公大樓。

As Matt will discuss, our quarterly distribution to shareholders remain secure, as evidenced by our rolling 4 quarters CAD payout ratio of just under 60% compared to our target payout ratio of 75%.

正如馬特將討論的那樣，我們對股東的季度分配仍然是安全的，我們的滾動4 個季度的加元支付率略低於60%，而我們的目標支付率是75%，這證明了這一點。

I'll now turn the call over to Chris to review leasing and operations. Chris?

我現在將把電話轉給克里斯，以審查租賃和營運。克里斯？

Thank you, David, and good morning everyone. We are encouraged by our operating and leasing results for the third quarter against the backdrop of ongoing uncertainty around the speed of the economic recovery and the long-term impact on office real estate.

謝謝你，大衛，大家早安。在經濟復甦速度和對辦公室房地產的長期影響持續存在不確定性的背景下，我們對第三季的營運和租賃業績感到鼓舞。

Despite some of the trends across the broader market, it is worth noting a few key portfolio highlights for OPI. First, leasing activity continues to increase with an active pipeline of 3.1 million square feet, nearly double the pipeline from Q1 2020 and a 45% increase from Q2 2020. Second, the third quarter marks the fifth consecutive quarter of positive rent roll-up for completed leases which is expected to continue through at least the balance of 2020. Third, our weighted average lease term for completed lease activity since Q1 2019 is 7.5 years, on pace with our business plan to improve the overall portfolio composition.

儘管整個市場出現了一些趨勢，但 OPI 的一些關鍵投資組合亮點仍值得注意。首先，租賃活動持續增加，活躍的待租面積達到310 萬平方英尺，比2020 年第一季增加近一倍，比2020 年第二季增加45%。其次，第三季標誌著租金連續第五個季度正成長。已完成的租賃預計將至少持續到2020 年剩餘時間。第三，自2019 年第一季以來已完成租賃活動的加權平均租賃期限為7.5 年，與我們改善整體投資組合構成的業務計劃保持一致。

Turning to our results. During the third quarter, we completed 595,000 square feet of new and renewal leasing with a weighted average roll-up in rent of 31%, a weighted average lease term of 10.6 years and leasing capital per square foot per lease year of only $0.99. This roll-up is primarily the result of a new 10,000 square foot lease located in Chesapeake, Virginia and 98,000 square foot renewal with our primary tenant located at 251 Causeway in the Boston CBD and a renewal with a tenant located in our Naperville, Illinois building for 58,000 square feet.

轉向我們的結果。第三季度，我們完成了 595,000 平方英尺的新租賃和續租租賃，加權平均租金上漲 31%，加權平均租賃期限為 10.6 年，每個租賃年每平方英尺的租賃資本僅為 0.99 美元。此次捲起主要是由於位於弗吉尼亞州切薩皮克的10,000 平方英尺新租約以及與位於波士頓中央商務區251 Causeway 的主要租戶的98,000 平方英尺續租以及與​​位於伊利諾伊州內珀維爾大樓的租戶的續租的結果58,000 平方英尺。

Year-to-date, our leasing activity has generated a weighted average roll-up in rent of 8% and a weighted average lease term of 7.1 years. We ended the quarter with occupancy of 91.2%, a 50-basis point decrease from last quarter, but in line with our expected results.

今年迄今為止，我們的租賃活動使租金加權平均上漲了 8%，加權平均租賃期限為 7.1 年。本季末，我們的入住率為 91.2%，比上季下降 50 個基點，但符合我們的預期結果。

As noted earlier, our leasing pipeline remains active with discussions covering 3.1 million square feet with roughly 400,000 square feet current activity that is in advanced stages of negotiation, and more than 300,000 square feet that could absorb vacant space across the portfolio. As a result, we expect to close out the year with a roll-up in rent of close to 7% and occupancy around 91%.

如前所述，我們的租賃管道仍然活躍，討論範圍涵蓋 310 萬平方英尺，其中約 40 萬平方英尺的當前活動處於談判後期階段，還有超過 30 萬平方英尺可以吸收整個投資組合的空置空間。因此，我們預計今年年底租金將上漲近 7%，入住率將上漲約 91%。

Turning to upcoming expirations. As we look to our 2021 expiration schedule, we have 7% of our annualized rental income that is expected to vacate. We have previously communicated or disclosed known move-outs for tenants at 20 Massachusetts Avenue in Washington DC and Technicolor in Huntsville, Alabama, which represent more than half of the annualized rental income at risk for 2021. The remaining at-risk rental income of 3.3% is largely attributable to 2 buildings located in Fresno, California and Plantation, Florida.

轉向即將到期的情況。當我們展望 2021 年的到期時間表時，我們預計將騰出 7% 的年化租金收入。我們先前曾溝通或揭露華盛頓特區馬薩諸塞大道 20 號和阿拉巴馬州亨茨維爾 Technicolor 租戶的已知遷出情況，佔 2021 年風險年化租金收入的一半以上。剩餘風險租金收入為 3.3 % 主要歸因於位於加州弗雷斯諾和佛羅裡達州種植園的2 座建築。

For each of these properties, we have either commenced the marketing strategy for leasing, have plans for a larger repositioning to grow NOI or have identified the property for capital recycling.

對於這些房產中的每一個，我們要么開始了租賃行銷策略，要么計劃進行更大規模的重新定位以增加NOI，要么已經確定了用於資本回收的房產。

Highlights of the strategies for these 4 buildings include the following: we have 2 GSA tenants in buildings located in Fresno, California and Plantation, Florida. Our tenant in Fresno, California expires in Q4 2021 and represents 1.4% of annualized rental income. While we expect the tenant will decommission its use for the building, the tenant has not provided notice on the timing for an exit and we believe it is probable that tenant will remain in its space into 2022. We have included this building as part of our capital recycling program.

這 4 棟建築的策略要點包括：我們在位於加州弗雷斯諾和佛羅裡達州種植園的建築中擁有 2 個 GSA 租戶。我們位於加州弗雷斯諾的租戶將於 2021 年第四季到期，佔年化租金收入的 1.4%。雖然我們預計租戶將停止使用該建築，但租戶尚未提供有關退出時間的通知，我們相信租戶很可能會在 2022 年繼續留在其空間內。我們已將這座建築納入我們的計劃的一部分。資本回收計劃。

In Plantation, Florida we opportunistically elected not to renew the GSA, given their need to reduce space in the building and the market illustrating strong fundamentals with larger private sector users and the ability to drive more favorable net effective rents. As such, we have commenced marketing to re-lease the building. The GSA represents 80 basis points of annualized rental income and is scheduled to expire in Q2 2021. However, recent conversations indicate a Q3 2021 exit is more likely.

在佛羅裡達州種植園，我們機會主義地選擇不續簽 GSA，因為他們需要減少建築和市場的空間，這表明私營部門用戶規模較大，基本面強勁，並且有能力推動更有利的淨有效租金。因此，我們已開始重新租賃該建築物的行銷活動。 GSA 代表年化租金收入的 80 個基點，計劃於 2021 年第二季到期。然而，最近的對話顯示 2021 年第三季退出的可能性更大。

With our property located in Washington DC, the tenant is scheduled to vacate at the end of the first quarter. As previously discussed, this building is located in the Capitol Hill submarket, which is one Block from Union Station and provides for an opportunistic redevelopment strategy to reposition the property as a Class A mixed use building with the addition of 2 floors. Upon completion, we anticipate a stabilized return on cost of 8% to 10%, and we'll have more information available on leasing and confirmation of project plans in the upcoming quarters.

我們的房產位於華盛頓特區，租戶計劃在第一季末搬出。如前所述，該建築位於國會山子市場，距離聯合車站僅一個街區，並提供了機會主義的重建策略，將該物業重新定位為甲級混合用途建築，並增加了 2 層。竣工後，我們預計成本回報率將穩定在 8% 至 10%，並且我們將在未來幾個季度獲得有關租賃和專案計劃確認的更多資訊。

Lastly, Technicolor, a tenant occupying an industrial building in Huntsville, Alabama provided notice of their lease termination effective in August 2021. We are generally optimistic on re-leasing efforts, given the strength and demand of the industrial real estate sector in today's market as well as the strong U.S. Government and Aerospace presence in the submarket. We are actively marketing the building and are in discussions with potential users currently not included in our pipeline projections and look forward to updating you on our progress in the upcoming quarters.

最後，位於阿拉巴馬州亨茨維爾一棟工業建築的承租人Technicolor 提供了自2021 年8 月起生效的租約終止通知。鑑於當今市場上工業房地產行業的實力和需求，我們對重新租賃工作總體持樂觀態度。以及美國政府和航空航天公司在該子市場的強大影響力。我們正在積極行銷該建築，並正在與目前未包含在我們的管道預測中的潛在用戶進行討論，並期待向您通報我們在未來幾季的進展。

In closing, despite the speculation around work-from-home, our pipeline and renewal conversations do not provide any clear trend of tenants preparing to modify their space needs. Consolidated portfolio occupancy is expected to remain close to 91%, at least through 2020, and we maintain our focus on proactive communication with tenants to understand their needs throughout the oncoming pandemic and aim to drive retention over the long term.

最後，儘管有關於在家工作的猜測，但我們的管道和更新對話並沒有提供租戶準備改變其空間需求的任何明確趨勢。預計至少到2020 年，綜合投資組合入住率將保持在接近91% 的水平，我們將繼續專注於與租戶的主動溝通，以了解他們在即將到來的大流行期間的需求，並致力於長期提高保留率。

We believe our geographically diverse portfolio, property composition, high credit quality tenant base, flexible financial position, along with the support of a large platform of dedicated real estate professionals through RMR continues to benefit us as we manage through the pandemic environment.

我們相信，我們地理多元化的投資組合、物業構成、高信用品質的租戶基礎、靈活的財務狀況，以及透過RMR 提供的大型專業房地產專業人士平台的支持，將繼續使我們在應對疫情環境時受益。

I will now turn the call over to Matt Brown to provide details on our financial results. Matt?

我現在將把電話轉給馬特布朗，以提供有關我們財務業績的詳細資訊。馬特？

Thanks, Chris, and good morning, everyone. Normalized FFO for the third quarter was $62.6 million or $1.30 per share, which beat consensus by $0.02 and the high end of our estimate by $0.01 mainly due to operating expenses coming in less than forecasted based on the continued cost savings initiatives put in place by RMR.

謝謝克里斯，大家早安。第三季標準化 FFO 為 6,260 萬美元，即每股 1.30 美元，比市場預期高出 0.02 美元，超出我們預期的上限 0.01 美元，這主要是由於 RMR 實施的持續成本節約舉措導致營運費用低於預期。 。

CAD for the third quarter was $44.6 million or $0.93 per share, which resulted in a CAD payout ratio of 59.1%. Our quarterly dividend remains well covered, and we expect our CAD payout ratio to stay below our target of 75% for the remainder of 2020.

第三季加幣為 4,460 萬美元，即每股 0.93 美元，加元支付率為 59.1%。我們的季度股息仍然得到充分支付，我們預計加元支付率在 2020 年剩餘時間內將保持在 75% 的目標以下。

G&A expense for the third quarter was $7.1 million, down 12% from $8 million for the third quarter of 2019. The decline is mainly the result of lower business management fees paid to RMR as the fee continues to be paid based on market cap, and we saw lower debt levels from property dispositions since July 1, 2019 and a decline in OPI's average share price. We believe this fee calculation demonstrates the strong alignment of interest between RMR and OPI shareholders.

第三季的一般管理費用為 710 萬美元，比 2019 年第三季的 800 萬美元下降 12%。下降的主要原因是支付給 RMR 的業務管理費較低，因為該費用繼續根據市值支付，並且自2019 年7 月1 日以來，我們看到財產處置帶來的債務水準下降，OPI 的平均股價下跌。我們相信這項費用計算顯示 RMR 和 OPI 股東之間的利益高度一致。

Interest expense for the third quarter was $27.1 million, down $5.3 million or 16% from $32.4 million in the third quarter of 2019, primarily due to a lower average interest rate on a revolving credit facility and lower outstanding debt balances in the 2020 period. On a sequential quarter basis, interest expense increased $1.9 million due to the issuance of $412 million of unsecured senior notes since June 2020.

第三季利息支出為2,710 萬美元，比2019 年第三季的3,240 萬美元減少530 萬美元，降幅為16%，這主要是由於2020 年期間循環信貸額度平均利率較低以及未償債務餘額較低。由於自 2020 年 6 月以來發行了 4.12 億美元的無擔保優先票據，利息支出較上月增加了 190 萬美元。

Turning to property level results for the quarter. Same property cash basis NOI increased $1.5 million or 1.7% compared to the third quarter of 2019, within our guidance range. The increase was mainly driven by continued expense savings as RMR has implemented cost savings initiatives in response to the COVID-19 pandemic in the areas of utilities and cleaning.

轉向本季的房地產水平結果。與 2019 年第三季相比，相同財產現金基礎 NOI 增加了 150 萬美元，即 1.7%，在我們的指導範圍內。這一增長主要是由於 RMR 在公用事業和清潔領域實施了成本節約舉措，以應對 COVID-19 大流行，從而持續節省費用。

Based on our current forecast, including estimates of G&A expense, which can be challenging due to the volatility of the stock market and Q4 NOI, which the pandemic also makes uncertain, we expect fourth quarter normalized FFO to be between $1.24 and $1.26 per share and same property cash basis NOI growth to be between 2% and 4%, as compared to the fourth quarter of 2019.

根據我們目前的預測，包括一般管理費用的估計（由於股票市場的波動和第四季度NOI（疫情也使其不確定），這可能具有挑戰性），我們預計第四季度標準化FFO 將在每股1.24 美元至1.26 美元之間，與 2019 年第四季相比，相同房地產現金基礎 NOI 成長在 2% 至 4% 之間。

As it relates to the COVID-19 pandemic, third quarter rent collections continued to be strong with 99% of rent obligations collected before and after giving effect to rent deferrals. To-date, 98% of October rent obligations have been collected.

由於與 COVID-19 大流行有關，第三季的租金收取繼續強勁，在租金延期生效之前和之後收取了 99% 的租金義務。迄今為止，10 月的租金義務已收回 98%。

In August, Tailored Brands, which accounts for 1% of our annualized rental income, filed for Chapter 11 bankruptcy as part of a corporate restructuring that includes closing of the 500 of its unprofitable stores. The tenant has paid its post-deficient rent due in September and October as well as $313,000 of granted rent deferrals which represents 50% of the amount granted. Our properties, the company's headquarters and their reorganization plan includes the assumption of this lease.

8 月，占我們年化租金收入 1% 的 Tailored Brands 根據美國破產法第 11 章申請破產，作為公司重組的一部分，其中包括關閉 500 家不盈利的商店。租戶已支付 9 月和 10 月到期的赤字後租金以及 313,000 美元的租金延期付款，相當於所授予金額的 50%。我們的財產、公司總部及其重組計劃包括承擔該租賃。

Bad debt remains immaterial with tenants accounting for only approximately 1.5% or 1% of our monthly rents and our watchlist and reserves are largely unchanged from the levels recorded in Q2.

壞帳仍然不重要，租戶僅占我們每月租金的 1.5% 或 1% 左右，我們的觀察名單和準備金與第二季度記錄的水平基本沒有變化。

As of October 26, we have granted rent deferrals to 19 tenants totaling $2.5 million, which represents only 91 basis points of the contractual cash revenue over the months with deferrals, which is April through September. To-date, we've collected $1.4 million of these deferrals including 4 tenants that have repaid in full, 3 of which were repaid early and our current balance of deferrals outstanding is $1.1 million.

截至 10 月 26 日，我們已向 19 名租戶提供了總計 250 萬美元的租金延期，這僅佔延期幾個月（即 4 月至 9 月）合約現金收入的 91 個基點。迄今為止，我們已收取 140 萬美元的延期付款，其中 4 名租戶已全額償還，其中 3 名租戶已提前償還，我們目前未償還的延期付款餘額為 110 萬美元。

Turning to the balance sheet and capital expenditures for the quarter. In September, we reopened our $400 million of senior unsecured notes due in 2025 and issued $250 million of new notes. The notes were issued at a premium, resulting in a re-offer yield of 4.122%, raising net proceeds of $251 million, which was used to repay all amounts outstanding on our $750 million revolving credit facility.

轉向本季的資產負債表和資本支出。 9 月，我們重新發行了 2025 年到期的 4 億美元優先無抵押票據，並發行了 2.5 億美元的新票據。這些票據溢價發行，重新發行收益率為 4.122%，籌集淨收益 2.51 億美元，用於償還我們 7.5 億美元循環信貸額度的所有未償金額。

In August, we repaid a $39.6 million mortgage at maturity, and have no significant debt coming due until 2022. At September 30, our net debt to annualized adjusted EBITDAre was 6.1x, at the low end of our target range and we currently have over $800 million of liquidity.

8 月份，我們在到期時償還了3,960 萬美元的抵押貸款，並且在2022 年之前沒有到期的重大債務。截至9 月30 日，我們的淨債務與年化調整後EBITDA 的比率為6.1 倍，處於我們目標範圍的低端，目前我們的負債超過8億美元的流動資金。

We spent $17.8 million on recurring capital during the third quarter, including $10.6 million on building improvements and $7.2 million on leasing capital. Based on our current forecast, we expect 2020 recurring capital expenditures to be approximately $84 million, which is down from our initial forecast of $110 million.

第三季我們在經常性資本上花費了 1,780 萬美元，其中包括 1,060 萬美元用於建築改善和 720 萬美元用於租賃資本。根據我們目前的預測，我們預計 2020 年經常性資本支出約為 8,400 萬美元，低於我們最初預測的 1.1 億美元。

With full availability on our $750 million revolving credit facility, virtually no upcoming debt maturities and 64.7% of our annualized rental income paid by investment grade rated tenants, we feel financially strong and well positioned to not only withstand the ongoing pandemic-related economic challenges but to advance our strategic business plans.

我們的7.5 億美元循環信貸額度已全部可用，幾乎沒有即將到期的債務，而且我們的年化租金收入的64.7% 由投資級評級租戶支付，我們感到財務實力雄厚，處於有利位置，不僅能夠承受持續的與流行病相關的經濟挑戰，並且推動我們的戰略業務計劃。

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 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。

David, when you think about re-leasing activity for next year and the amount to vacate versus what you're seeing in your discussions with existing and potential new tenants -- and maybe this is better question for Chris, I don't know. But when you think about year-end 2021, how much of that to-vacate space do you think either gets sold or re-leased?

大衛，當你考慮明年的重新租賃活動和騰出的金額以及你在與現有和潛在新租戶的討論中看到的情況時，也許這對克里斯來說是更好的問題，我不知道。但當您想到 2021 年底時，您認為騰出的空間中有多少會被出售或重新出租？

Yes, Bryan, I mean I think it's going to be difficult to really understand with our capital recycling program. The properties themselves consists of various types, including some stabilized, some with near-term expirations or high capital needs -- some, as I mentioned, Fresno, with the upcoming vacancy. So it's going to be difficult to determine how that actually is received in the market. And so, I think really, our goal is to get these properties out in the market this quarter that we're in now, and be in a position as we get on to next quarter's earnings to provide some more guidance around year-end projections and kind of how that capital recycling program is coming together.

是的，布萊恩，我的意思是我認為很難真正理解我們的資本回收計劃。這些房產本身由多種類型組成，包括一些穩定的、一些近期到期或高資本需求的房產——正如我所提到的，弗雷斯諾的一些房產即將空置。因此，很難確定市場上的實際反應如何。因此，我認為，我們的目標實際上是在本季度將這些房產推向市場，並在下一季度的收益公佈時為年終預測提供更多指導以及資本回收計劃是如何整合起來的。

Bryan, let me add to that. I do think that the known vacates that we've talked about, we have a pretty high probability of leasing a lot of that space or potentially selling the one asset that we put into the capital recycling program. So they are good buildings, the industrial building is in a pretty decent market, and I do think we have a decent chance of selling the IRS building in Fresno. So I'm optimistic that a lot of progress will be made during 2021.

布萊恩，讓我補充一下。我確實認為，我們討論過的已知空置，我們很有可能租賃大量空間或可能出售我們投入資本回收計劃的一項資產。所以它們是很好的建築，工業建築的市場相當不錯，而且我確實認為我們有很好的機會出售弗雷斯諾的國稅局大樓。因此，我對 2021 年將取得重大進展感到樂觀。

And are there buyers out there, I mean, I know that you just sold some assets. But is that buyer pool the same? Has it increased, has it decreased? What is the buyer appetite out there given what's been going on with COVID?

那裡有買家嗎？我的意思是，我知道你們剛剛出售了一些資產。但買家群體是一樣的嗎？是增加了還是減少了？鑑於新冠疫情的發展，買家的興趣如何？

Well, I think in general, there is a lot of capital available for core assets. I think some -- it's less tempered with some of the value add. Certainly, there is buyers with 1031 exchanges or others that may be more susceptible to take on some risk. And so, some of these buildings are good opportunities for local owners, others who own property within the market, who have strategic objectives within the market. And so, as David mentioned, I think we're going to kind of find a more open range of buyer pool for these assets. And so, I think it will be interesting as we get out in the market to see what the reaction is.

嗯，我認為總的來說，有很多資本可用於核心資產。我認為有些——它不太受某些附加價值的影響。當然，有 1031 交易所的買家或其他買家可能更容易承擔一些風險。因此，其中一些建築物對於當地業主和其他在市場內擁有房產、在市場內有策略目標的業主來說是很好的機會。因此，正如大衛所提到的，我認為我們將為這些資產找到更開放的買家群體。因此，我認為當我們進入市場並看看反應如何時，這將會很有趣。

Yes. Specifically, Bryan, the Fresno building, it's a huge acreage parcel, fits in the middle of a residential neighborhood. So the likely buyer there is a residential developer that will take the building down and put horizontal improvements and sell lots and build homes.

是的。具體來說，布萊恩，弗雷斯諾大樓，它是一個面積巨大的地塊，位於住宅區的中間。因此，可能的買家是一家住宅開發商，他們將拆除建築物並進行橫向改進，然後出售土地並建造房屋。

Great. And then just one from me and I'll get back into the queue. David, when you look at your yield, your dividends like approaching 12%, and the dividend is exceedingly well covered. I mean, what are your thoughts there and what are your discussions with institutional investors? That clearly must be giving them some kind of a pause for the yields have elevated to such a level.

偉大的。然後只要我發出一張，我就會回到隊列中。大衛，當你看看你的收益率時，你的股息接近 12%，而且股息支付得非常好。我的意思是，您對此有何想法以及您與機構投資者的討論是什麼？這顯然一定會讓他們暫停一下，因為收益率已經升至這樣的水平。

Bryan, this is Matt. I can take that. As you point out, our dividend is very well covered. We're expecting 2020 payout ratio at under 65%. As we look at our share price as compared to our peer group, we're all down similarly, year-to-date. And with a strong coverage on our dividend, we feel very good with where we are and hopefully we continue executing on our business plan and changes to the pandemic that we'll see our share price improve where it was to pre-pandemic levels.

布萊恩，這是馬特。我可以接受。正如您所指出的，我們的股息支付得很好。我們預計 2020 年的派息率將低於 65%。當我們將我們的股價與同業相比時，我們今年迄今的股價都出現了類似的下跌。透過對股利的大力支持，我們對目前的狀況感到非常滿意，希望我們繼續執行我們的業務計劃和大流行的變化，我們將看到我們的股價提高到大流行前的水平。

Yes. Bryan, we got to get out and tell our story around the dividend, because you're right, sometimes when the dividend yield gets high like this, there becomes a concern and it's -- you're poised for a cut. And even with -- as we look at 2021, even with the 7% of revenue that we expect to vacate, our dividend remains well covered. So we've got to tell that story to make sure investors understand that and hopefully that will resonate and the share price will bounce back.

是的。布萊恩，我們必須出去講述我們關於股息的故事，因為你是對的，有時當股息殖利率像這樣高時，就會出現一種擔憂——你準備削減股息。即使我們展望 2021 年，即使我們預計將騰出 7% 的收入，我們的股息仍然得到很好的支付。因此，我們必須講述這個故事，以確保投資者理解這一點，並希望這會引起共鳴，股價會反彈。

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。

Just sort of building upon that comment around dividend being sort of well covered in 2021, just so we have maybe a more holistic understanding of the cash flow over a multi-year period, can you maybe -- are there any indications or known move-outs for 2022 that may impact cash flow? Number one. And number two, to that question, any thoughts on whether CapEx levels may change sort of going to next year, given all this churn that you're having?

只是基於圍繞 2021 年股息得到很好覆蓋的評論，這樣我們可能對多年期間的現金流有更全面的了解，您是否可以——是否有任何跡像或已知的舉動—— 2022 年的計劃可能會影響現金流嗎？第一。第二，對於這個問題，考慮到您所經歷的所有這些變動，您對明年的資本支出水準是否可能會發生變化有什麼想法嗎？

Yes, I mean regarding 2022, there is nothing to report on for known move-outs. As it relates to CapEx levels, we expect recurring capital to be less than $100 million in 2021, based off our current forecast.

是的，我的意思是關於 2022 年，對於已知的搬遷沒有什麼可報告的。由於與資本支出水準相關，根據我們目前的預測，我們預計 2021 年經常性資本將低於 1 億美元。

Okay, great. And then just second given sort of work-from-home and the debate around this topic, medium and longer term. Do you have a sense of what utilization is across your portfolio today? And number 2, have any tenants specifically engaged in conversations about potentially restructuring their office footprint and specifically on leases they'll have with you?

好的，太好了。然後是第二個在家工作以及圍繞這個主題的中期和長期辯論。您了解目前您的投資組合的使用率嗎？第二，是否有任何租戶專門參與有關可能重組其辦公室佔地面積的對話，特別是他們將與您簽訂的租約？

Yes. So this is Chris. Regarding the utilization, so right now, 30% of our portfolio has occupancy in excess of 50%. And so a lot of that is attributable to mostly suburban properties and that has continued to increase over the last couple of months.

是的。這就是克里斯。就利用率而言，目前我們的投資組合中有 30% 的利用率超過 50%。因此，其中很大一部分歸因於郊區房產，並且在過去幾個月中持續增加。

When we expect to work-from-home, our pipeline, 3.1 million square feet, we don't have any tenants that are considering reduced footprint due to work-from-home. Most of these tenants, a large portion of them are renewals. And so with that they would renew with their existing footprint. And then new deals, they are just contemplating opportunities based on available vacancy.

當我們預計在家工作時，我們的管道面積為 310 萬平方英尺，但沒有任何租戶考慮因在家工作而減少佔地面積。這些租戶中，很大一部分是續租的。這樣他們就會更新現有的足跡。然後是新交易，他們只是根據可用空缺來考慮機會。

And so, there is -- it goes back to a lot of what we've talked about before where it really is kind of a wait-and-see mentality. But I think given our pipeline and the fact that there are no specific known downsizes or changes to utilization, I think we'll just kind of have to kind of wait and see if that evolves over time.

所以，這又回到了我們之前討論過的很多內容，實際上是一種觀望心態。但我認為，鑑於我們的管道以及沒有具體已知的規模縮小或利用率變化的事實，我認為我們只能等待，看看這種情況是否會隨著時間的推移而發展。

And then just real quick, I just remembered last question just on Technicolor. You mentioned kind of -- obviously, it's a robust industrial market. Just based on preliminary interest, what are you assuming in terms of either a roll-up or roll-down, once you get the fleece?

然後很快，我就想起了 Technicolor 上的最後一個問題。你提到了——顯然，這是一個強勁的工業市場。僅基於初步興趣，一旦您獲得羊毛，您對上卷或下卷有何假設？

Yes, I mean it's really early and the reason why we didn't included in our pipeline is because we like to kind of make sure we have real deals to talk about and share with you. But I think based on where the expiring rent is, we would expect in general will roll up going into a new lease.

是的，我的意思是現在還很早，我們之所以沒有納入我們的管道是因為我們想確保我們有真正的交易可以與您討論和分享。但我認為，根據即將到期的租金，我們預計總體上會增加新的租約。

Our next question comes from Venkat Kommineni with Mizuho.

我們的下一個問題來自 Mizuho 的 Venkat Kommineni。

Just wondering if you could provide any additional color on the Tailored Brands and Technicolor? For Tailored brands, when would the mix be affirmed by the court? And on Technicolor, was that lease renegotiated in 2Q and then they subsequently disclosed their intent to terminate?

只是想知道您是否可以在 Tailored Brands 和 Technicolor 上提供任何其他顏色？對於定製品牌來說，這種組合何時會得到法院的確認？在 Technicolor 上，該租約是否在第二季度重新協商，然後他們隨後透露了終止的意圖？

I can start on Tailored Brands. So Tailored Brands submitted a supplemental plan to the court's earlier this week, which included the assumption of our lease. The court's hearing for that plan is scheduled for next Friday, November 6. As I said in my prepared remarks, we are pleased, they have paid their rents in September and October, and 50% of the rent deferral that we have granted to them earlier in the year. So we remain positive on that story.

我可以從定製品牌開始。因此，Tailored Brands 於本週稍早向法院提交了一份補充計劃，其中包括承擔我們的租約。法院對該計劃的聽證會定於下週五，即11 月6 日。正如我在準備好的演講中所說，我們很高興他們已經支付了9 月和10 月的租金，以及我們給予他們的50% 的延期租金今年稍早。所以我們對這個故事保持樂觀。

And then with respect to Technicolor, we had been in conversations with them pre-pandemic. And we're working with them kind of on a longer-term plan for the property. And part of that included a modification to their rent based on some downsize, right that they have, which were forgone as part of that discussion. They did maintain their termination right and it's in our opinion as COVID progressed, it puts strain and ultimately they elected to terminate the lease and consolidated to other locations.

然後，關於特藝，我們在大流行前就與他們進行了對話。我們正在與他們合作制定該房產的長期計劃。其中一部分包括根據他們擁有的一些縮小規模來調整他們的租金，這些權利在討論中被放棄了。他們確實保留了終止租約的權利，我們認為，隨著新冠疫情的進展，這會帶來壓力，最終他們選擇終止租約並合併到其他地點。

Okay, thank you. And then, David, I think you previously mentioned that in terms of the election that single party control would actually benefit your portfolio given increased legislation in government employments. So do you view potential for a blue sweep as a positive for your portfolio?

好的謝謝。然後，大衛，我想你之前提到過，就選舉而言，鑑於政府就業立法的增加，單一政黨控制實際上將使你的投資組合受益。那麼，您認為藍色橫掃的潛力對您的投資組合有正面影響嗎？

I mean it's difficult to say. I think we give that feedback based on prior administrations. But I don't know that we expect to see any kind of negative material change by any means within government. I mean, just on kind of defense and cyber security itself, with those budgets largely being proposed in line with where it's been historically, which is generally an increase over prior fiscal years, we can envision there being an opportunity to see leasing with kind of mission-critical type uses. But in general, I don't think we expect a material change with the election.

我的意思是這很難說。我認為我們根據之前的政府提供回饋。但我不知道我們是否期望在政府內部看到任何形式的負面實質變化。我的意思是，就國防和網路安全本身而言，這些預算基本上是根據歷史情況提出的，通常比前一個財政年度有所增加，我們可以預見有機會看到租賃關鍵任務類型用途。但總的來說，我認為我們預期選舉不會帶來實質改變。

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

我們的下一個問題來自加拿大皇家銀行資本市場的麥可‧卡羅爾。

I want to talk a little bit about the leasing's that were provided. I think it was highlighted that you have 400,000 square feet of leases that are in active discussion today. I guess, how much of that is renewals versus new leases? I know you said that there is about 300,000 square feet that could take down vacant space, but I wasn't quite sure if that was in active discussions, if those 2 numbers were inclusive of one another or not?

我想談談所提供的租賃。我認為今天正在積極討論你們有 40 萬平方英尺的租約，這一點很突出。我猜，其中有多少是續租與新租約？我知道你說過大約有 30 萬平方英尺可以減少空置空間，但我不太確定這是否正在積極討論中，這兩個數字是否相互包含？

Yes, I mean, I think the way to look at, about 2/3 is renewals and 1/3 is new leasing across our pipeline. And so, the 300,000 square feet would be net new absorption, and the way we look at that is based on vacant spaces and the ability to lease those.

是的，我的意思是，我認為我們的管道中大約 2/3 是續租，1/3 是新租賃。因此，這 30 萬平方英尺將是淨新增吸收量，我們看待這個問題的方式是基於空置空間和租賃這些空間的能力。

But then I guess, of the 400,000, that's in active discussion today, 1/3 of that would be -- consist of a takedown on currently vacant space, so roughly 130,000 square feet, and the rest would just basically be renewals?

但我想，在今天正在積極討論的 40 萬個中，其中 1/3 將是——包括拆除目前的空置空間，大約 13 萬平方英尺，其餘的基本上只是更新？

It could be attributable to renewals and then also where leases are expiring if we were to sign those leases in advance of that expiration.

這可能歸因於續約，如果我們在租約到期之前簽署這些租約，那麼也可能歸因於租約即將到期。

Okay. And then, I'm not sure, I think I missed the early part of the call, so I don't know if I got this. Can you talk a little bit about the acquisition that was terminated? I mean, I'm sure you mentioned in your prepared remarks, but if there's anything you can add on that?

好的。然後，我不確定，我想我錯過了電話的早期部分，所以我不知道我是否收到了這個。您能談談被終止的收購嗎？我的意思是，我確信您在準備好的發言中提到了這一點，但您是否還有什麼可以補充的？

Yes. So that was a building that we were looking at in the Denver MSA. When we got into diligence, I think the outcome -- we found that there was additional capital required that we would have to take on, and so it really diluted our yields for the acquisition and we decided that it wasn't something we wanted to pursue.

是的。這就是我們在丹佛 MSA 考察的一棟建築。當我們進行盡職調查時，我認為結果是——我們發現我們必須承擔額外的資本，因此它確實稀釋了我們收購的收益，我們決定這不是我們想要的追求。

This concludes our question-and-answer session. I would now 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。現在我想將會議轉回大衛布萊克曼（David Blackman）發表閉幕詞。

Thank you, operator. We intend to participate in the JMP Securities Real Estate Conference and Virtual NAREIT next month. And hope to meet with many of you. So thank you for joining us today. That concludes our call.

謝謝你，接線生。我們打算參加下個月的 JMP 證券房地產會議和虛擬 NAREIT。並希望與你們中的許多人見面。感謝您今天加入我們。我們的通話到此結束。

The conference is 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。