Piedmont Realty Trust Inc (PDM) 2024 Q2 法說會逐字稿

Good day, and welcome to the Piedmont Office Realty Trust Incorporated second-quarter 2024 earnings call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

美好的一天，歡迎參加 Piedmont Office Realty Trust Incorporated 2024 年第二季財報電話會議。此時，所有參與者都處於只聽模式。管理階層準備好發言後，將舉行問答環節。

I would now like to turn the call over to your host, Laura Moon. The floor is yours.

現在我想將電話轉給主持人勞拉·穆恩 (Laura Moon)。地板是你的。

Thank you, operator and good morning, everyone. We appreciate you joining us today for Piedmont’s second-quarter 2024 earnings conference call. Last night, we filed our Form 10-Q and an 8-K that includes our earnings release and our unaudited supplemental information for the second quarter of 2024 that is available for your review on our website at piedmontreit.com under the Investor Relations section.

謝謝接線員，大家早安。感謝您今天參加皮埃蒙特 2024 年第二季財報電話會議。昨晚，我們提交了10-Q 表格和8-K 表格，其中包括我們的收益發布和2024 年第二季度未經審計的補充信息，您可以在我們網站piedmontreit.com 的投資者關係部分查看這些資訊.

During this call, you will hear from senior officers at Piedmont. Their prepared remarks followed by answers to your questions will contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements address matters, which are subject to risks and uncertainties and therefore actual results may differ from those we anticipate and discussed today. The risks and uncertainties of these forward-looking statements are discussed in our press release as well as our SEC filings. We encourage everyone to review the more detailed discussion related to risks associated with forward-looking statements and our SEC filings.

在這次電話會議中，您將聽到皮埃蒙特高級官員的演講。他們準備好的評論以及對您問題的回答將包含 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。這些前瞻性陳述所涉及的問題可能存在風險和不確定性，因此實際結果可能與我們今天預期和討論的結果有所不同。我們的新聞稿以及向 SEC 提交的文件中討論了這些前瞻性陳述的風險和不確定性。我們鼓勵大家查看與前瞻性陳述和我們向 SEC 提交的文件相關的風險的更詳細討論。

Examples of forward-looking statements include those related to Piedmont's future revenues and operating income, dividends and financial guidance, future financing, leasing, and investment activity, and the impacts of this activity on the company's financial and operational results. You should not place any undue reliance on any of these forward-looking statements, and these statements are based upon the information and estimates we have reviewed as the date the statements are made.

前瞻性陳述的例子包括與 Piedmont 未來收入和營業收入、股息和財務指導、未來融資、租賃和投資活動以及該活動對公司財務和經營業績的影響相關的陳述。您不應過度依賴任何這些前瞻性陳述，這些陳述是基於我們在做出陳述之日審查的資訊和估計。

Also on today's call, representatives of the company may refer to certain non-GAAP financial measures such as FFO, core FFO, AFFO, and same-store NOI. The definitions and reconciliations of these non-GAAP measures are contained in the earnings release and in the supplemental financial information which were filed last night.

此外，在今天的電話會議上，公司代表可能會提及某些非 GAAP 財務指標，例如 FFO、核心 FFO、AFFO 和同店 NOI。這些非公認會計準則衡量標準的定義和調節包含在收益報告和昨晚提交的補充財務資訊中。

At this time, our President and Chief Executive Officer, Brent Smith, will provide some opening comments regarding second-quarter operating results. Brent?

此時，我們的總裁兼執行長布倫特史密斯將就第二季的經營業績發表一些開場評論。布倫特？

Thanks, Laura. Good morning, everyone, and thank you for joining us today as we review our second quarter results. In addition to Laura, on the line with me this morning are George Wells, our Chief Operating Officer; Chris Kollme, our EVP of Investments; and Bobby Bowers, our Chief Financial Officer. We also have the usual full complement of our management team available to answer your questions.

謝謝，勞拉。大家早安，感謝您今天與我們一起回顧第二季的業績。除了勞拉之外，今天早上和我一起在線的還有我們的首席營運官喬治威爾斯 (George Wells)。 Chris Kollme，我們的投資執行副總裁；以及我們的財務長鮑比鮑爾斯 (Bobby Bowers)。我們還配備了通常的全套管理團隊來回答您的問題。

Piedmont had an exceptional quarter, and we're very pleased with the results thus far this year. As we released last night, Piedmont completed over 1 million square feet of leasing, the largest quarterly volume the company has reported in over a decade when at that time the portfolio was approximately 35% bigger than it is today and we operate in 18 markets. As you all know, we are a very different and far more focused company in 2024.

皮埃蒙特度過了一個出色的季度，我們對今年迄今為止的結果非常滿意。正如我們昨晚發布的那樣，Piedmont 完成了超過100 萬平方英尺的租賃，這是該公司十多年來報告的最大季度交易量，當時的投資組合比現在大約35%，並且我們在18 個市場開展業務。眾所周知，到 2024 年，我們將是一家非常不同、更專注的公司。

Out of the headline, 1 million square feet of total leasing, over 400,000 square feet of the quarter's volume was related to new tenant leasing, and importantly, the balance included several sizable renewals which gives us the confidence that we can increase portfolio occupancy through the remainder of 2024.

在標題中，總租賃量為100 萬平方英尺，本季度超過400,000 平方英尺的租賃量與新租戶租賃有關，重要的是，餘額中包括幾次大規模的續租，這使我們有信心通過以下方式提高投資組合入住率： 2024 年剩餘時間。

George will provide market specifics and details on the leasing pipeline in a moment. But we believe that this quarter's leasing success is a testament to the high quality of our portfolio and the unwavering commitment of our teams at the property to provide truly differentiated environments and not just office space.

喬治稍後將提供市場細節和租賃管道的詳細資訊。但我們相信，本季的租賃成功證明了我們投資組合的高品質，以及我們的物業團隊堅定不移地致力於提供真正差異化的環境而不僅僅是辦公空間。

We also continue to be the beneficiaries of tenants demanding not only superior professional space, but also that they delivered by well-capitalized sustainability minded landlords. In addition, our customer service and leasing strategy targeting small- and medium-sized tenancy is driving portfolio leasing volumes and rental rates to new highs.

我們也繼續成為租戶的受益者，他們不僅需要卓越的專業空間，而且還需要資本充足、具有永續發展意識的房東提供這些空間。此外，我們針對中小型租賃的客戶服務和租賃策略正在將組合租賃量和租金率推向新高。

We believe these trends will be long-lasting, and Piedmont is extremely well-positioned to compete and gain market share in this next office cycle. Furthermore, Piedmont's operating strategy is clearly resulting in positive cash flow performance. During the second quarter, we were able to continue to drive double-digit rental rate growth of 15% roll-ups on cash rents and a 23% increase on accrual-based rents when those respective leases commence.

我們相信這些趨勢將持續下去，皮埃蒙特處於非常有利的位置，可以在下一個辦公週期中競爭並獲得市場份額。此外，皮埃蒙特的營運策略顯然帶來了積極的現金流表現。在第二季度，我們能夠繼續推動兩位數的租金成長，即在相應租賃開始時，現金租金增加 15%，應計租金增加 23%。

Likewise, during the quarter, same-store NOI increased approximately 6% on a cash basis and roughly 4% on an accrual basis as compared to the second quarter of 2023. The company's leasing success over the last several quarters has generated occupancy gains in our in-service portfolio, ending the second quarter at 87.3% leased compared to 87.1% leased at the end of 2023.

同樣，與 2023 年第二季相比，本季同店 NOI 以現金基礎計算成長約 6%，以權責發生製計算成長約 4%。該公司在過去幾季的租賃成功為我們的在役投資組合帶來了入住率成長，第二季末的租賃率為 87.3%，而 2023 年底的租賃率為 87.1%。

As a reminder while we have generated significant leasing volumes, the timing required for these leases to commence and to begin cash paying rents can be up to 12 to 24 months out. So as a result, we have generated a backlog of 1.6 million square feet of leases that are yet to commence or in abatement, equating to over $15 million of future annualized cash rents once the leases commence and abatements burn-off, and we estimate over $30 million of future annualized NOI.

需要提醒的是，雖然我們已經產生了大量租賃量，但這些租賃開始並開始現金支付租金所需的時間可能長達 12 至 24 個月。因此，我們積壓了 160 萬平方英尺尚未開始或正在削減的租賃，相當於租賃開始和削減消耗後未來年化現金租金超過 1500 萬美元，我們估計超過未來年化 NOI 為 3000 萬美元。

And while presidential elections can always be a wildcard impacting tenant decision making in the latter half of the year, the leasing pipeline across the portfolio from both the proposal and tour activity standpoint remains robust, as George will explain in a moment.

儘管總統選舉始終是影響下半年租戶決策的通配符，但從提案和旅遊活動的角度來看，整個投資組合的租賃管道仍然強勁，正如喬治稍後將解釋的那樣。

Turning to the balance sheet that Bobby will detail, I want to thank our entire finance team for completing crucial refinancing activity during the first half of this year including issuing $400 million of new five-year bonds in June at approximately 240 basis points improved credit spreads compared to the bond offering only one year ago. This latest bond issuance concluded several significant refinancing transactions over the past year and is expected to address all final debt maturities until 2027 and, in the process, meaningfully improves Piedmont's balance sheet and liquidity position.

談到鮑比將詳細介紹的資產負債表，我要感謝我們整個財務團隊在今年上半年完成了重要的再融資活動，包括在6 月份發行了4 億美元的新五年期債券，信用利差提高了約240 個基點與一年前的債券發行相比。最新的債券發行在過去一年中完成了幾筆重大的再融資交易，預計將解決2027 年之前的所有最終債務到期問題，並在此過程中顯著改善皮埃蒙特的資產負債表和流動性狀況。

And finally, as Chris will discuss, just after the end of the second quarter, we were able to close on another small disposition. Across the broader office market, we are witnessing a modest uptick in transactional activity, which gives us the belief that we can begin to recycle capital more efficiently next year.

最後，正如克里斯將討論的那樣，就在第二季結束後，我們能夠完成另一個小部署。在更廣泛的辦公市場上，我們看到交易活動略有上升，這讓我們相信明年可以開始更有效地回收資本。

Looking ahead to the remainder of this year and beyond. Although challenges reside in the office sector as commodity office space continues to be rationalized and repurposed, we are optimistic about the secular and company-specific trends that are driving our leasing momentum, including continued population migration to the Sunbelt and the suburbs, the flight to quality by office users, improving access to capital within the office sector, and the continued differentiation between obsolete product and the well-located vibrant environments that Piedmont delivers across our portfolio.

展望今年剩餘時間及以後。儘管隨著商品辦公空間的不斷合理化和重新利用，辦公大樓領域面臨著挑戰​​，但我們對推動我們租賃勢頭的長期和公司特定趨勢持樂觀態度，包括人口持續遷移到陽光地帶和郊區、辦公用戶的質量，改善辦公領域內的資本獲取，以及皮埃蒙特在我們的投資組合中提供的過時產品和位置優越的充滿活力的環境之間的持續差異化。

With that, I'll hand the call over to George who will go into more details on second-quarter operational results.

接下來，我會將電話轉交給喬治，他將詳細介紹第二季的營運表現。

Thanks, Brent, and good morning, everyone. Exceptional leasing momentum for new space and multiple existing tenant renewals during the second quarter led to strong operational results on several of our key metrics. All of our core markets experienced solid leasing demand, dominated by small and medium-sized businesses that are attracted to our modern well-amenitized projects.

謝謝布倫特，大家早安。第二季新空間的出色租賃動能和多個現有租戶的續約為我們的幾個關鍵指標帶來了強勁的營運表現。我們所有的核心市場都經歷了強勁的租賃需求，其中以中小型企業為主，這些企業被我們現代化的設施完善的項目所吸引。

Having the right blend of amenities is crucial for today's office customers, and our portfolio is well equipped with a wide range of food and beverage options, hospitality-infused collaborative workspaces, training rooms, fitness centers, outdoor meeting spaces, and a (inaudible) program designed into bring people together. This quarter, we added two more food and beverage operators, one at our Clarendon asset in Northern Virginia and the other in our downtown Minneapolis tower, further enhancing the range of our offerings and vibrancy in our common areas.

擁有適當的設施組合對於當今的辦公室客戶至關重要，我們的產品組合配備了廣泛的食品和飲料選擇、熱情好客的協作工作空間、培訓室、健身中心、戶外會議空間和（聽不清楚）旨在將人們聚集在一起的計劃。本季度，我們又增加了兩家食品和飲料運營商，一家位於弗吉尼亞州北部的克拉倫登資產，另一家位於明尼阿波利斯市中心的塔樓，進一步擴大了我們的產品範圍和公共區域的活力。

Overall, this quarter we completed a record 65 lease transactions for over 1 million square feet of total overall volume twice our quarterly average with nearly 40% of that volume was related to new tenant lease activity accounting for 38 transactions for 400,000 square feet, which is more than twice our pre-COVID quarterly leasing average of 165,000 square feet.

總體而言，本季我們完成了創紀錄的65 筆租賃交易，總面積超過100 萬平方英尺，是季度平均水平的兩倍，其中近40% 的交易量與新租戶租賃活動相關，佔400,000 平方英尺的交易量為38 筆，這是新冠疫情爆發前季度平均租賃面積 165,000 平方英尺的兩倍多。

The average size of new leasing activity was approximately 11,000 square feet consistent with previous quarters, with a weighted average term achieved of nearly 11 years. Once again, our focus on small and medium-sized enterprises continues to yield excellent results, with a record 31 new tenant leases each less than 10,000 square feet totaling almost 130,000 square feet with many I mean lease commencement dates later in 2024.

新租賃活動的平均規模約為 11,000 平方英尺，與前幾季一致，加權平均期限接近 11 年。我們對中小企業的關注再次取得了優異的成果，創紀錄地簽訂了31 個新租戶租約，每個租約面積均小於10,000 平方英尺，總面積近130,000 平方英尺，其中許多租約開始日期為2024 年晚些時候。

As Brent mentioned earlier, this quarter's rent roll-up metrics were quite impressive and is a continuation of strong roll-up trend the company has achieved over the past 10 quarters, including double-digit accrual increases in each quarter. As we've previously forecasted and despite record-breaking leasing success, which will commence in subsequent quarters, our lease percentage dipped down slightly quarter over quarter to end the second quarter at 87.3%. As we have experienced in several quarters now, most of our new tenant leasing activity are 85% occurred in our Sunbelt portfolio, where the majority of our in-service vacancies reside.

正如布倫特之前提到的，本季的租金累計指標相當令人印象深刻，是該公司過去 10 個季度實現的強勁累計趨勢的延續，包括每個季度兩位數的應計增長。正如我們之前預測的那樣，儘管租賃將在隨後的幾個季度中取得破紀錄的成功，但我們的租賃百分比逐季略有下降，第二季末降至 87.3%。正如我們在幾個季度所經歷的那樣，我們的大部分新租戶租賃活動 85% 發生在我們的 Sunbelt 投資組合中，我們的大部分在職空缺都位於該投資組合中。

Excluding two unusually large move outs, quarterly retention rate for the remained for the remainder of portfolio was in line with our typical historical average of 70%. Leasing capital spend was a little over $6 per square foot per lease year during the second quarter, slightly higher than our average for the past several quarters primarily driven by several large lease renewals in Dallas where the commission structure for renewal is higher than most other markets. Sublease activity remains flat at around 5% and none of that space is expiring in 2024.

排除兩次異常大規模的遷出，投資組合其餘部分的季度保留率與我們 70% 的典型歷史平均值一致。第二季每個租賃年的租賃資本支出略高於每平方英尺6 美元，略高於過去幾季的平均水平，這主要是由於達拉斯的幾場大型租賃續約所致，達拉斯的續約佣金結構高於大多數其他市場。轉租活動維持穩定在 5% 左右，這些空間都不會在 2024 年到期。

Next, I'd like to highlight a few key accomplishments and analysis which occurred some of our operating markets this quarter. Starting with Orlando, our fourth largest market by annualized lease revenue. Our local team made headlines with the relocation of Travel and Leisure's headquarters to our downtown project concert of city and secured another nine deals bringing the total amount of leasing volume in this market to 220,000 square feet. T&L is completely backfilling all of the space. The single user vacated at Piedmont One West church in the second quarter and was attracted to the vibrancy and a managed service location including ease of accessibility, above average parking ratio, and significant building top signage easily visible from the most travelled thoroughfare in Orlando.

接下來，我想重點介紹本季我們的一些營運市場所取得的一些關鍵成就和分析。從奧蘭多開始，以年化租賃收入計算，奧蘭多是我們的第四大市場。我們的當地團隊因將旅遊休閒總部遷至我們的市中心項目音樂會而成為頭條新聞，並達成了另外九項交易，使該市場的租賃總量達到 220,000 平方英尺。T&L 正在完全回填所有空間。該單一用戶在第二季度離開了Piedmont One West 教堂，並被這裡的活力和管理服務位置所吸引，包括交通便利、高於平均水平的停車率以及從奧蘭多最繁忙的大道上可以輕鬆看到的重要建築頂部標示。

Additionally, Piedmont work closely with city officials and Travel and Leisure land city-funded incentives that will be realized over a 15-year lease term. Kudos to our skillful local property and leasing team for such a significant win.

此外，皮埃蒙特與城市官員密切合作，並提供由城市資助的旅遊和休閒土地激勵措施，這些激勵措施將在 15 年的租賃期內實現。感謝我們熟練的當地房地產和租賃團隊取得如此重大的勝利。

Our Dallas portfolio realized the most overall leasing volume with 13 deals for 370,000 square feet. Renewal activity drove 87% of that volume with Ryan Tack and a global e-commerce retailer extending sizable leases at Galleria office towers.

我們的達拉斯投資組合實現了最大的整體租賃量，共完成 13 筆交易，面積達 37 萬平方英尺。Ryan Tack 和一家全球電子商務零售商延長了 Galleria 辦公大樓的大量租約，其中 87% 是由續租活動推動的。

As an aside, our interconnected neighbor, the Dallas Galleria, continues to reinvest and modernize its powerhouse experiential retail center, broadening its retail mix and F&B offerings, and soon to be the second location in the US for Netflix's permanent experiential venue called the Netflix House.

順便說一句，我們相互聯繫的鄰居達拉斯廣場(Dallas Galleria) 繼續對其強大的體驗式零售中心進行再投資和現代化改造，擴大其零售組合和餐飲產品，並且很快將成為Netflix 在美國的第二個永久性體驗場所（名為Netflix House） 。

Extensive renovations were also underway at the interconnected Galleria of Weston. The Galleria Dallas is an exceptional mixed-use environment with its centralized, easily accessible location. Its commercial uses drive retail, hotel, and office customers from a wide radius, reinforcing our confidence in more leasing success here.

相互連結的韋斯頓畫廊也在進行大規模的翻修。達拉斯畫廊 (Galleria Dallas) 位置集中、交通便利，是一個卓越的綜合用途環境。其商業用途吸引了來自廣泛半徑的零售、飯店和辦公客戶，增強了我們在這裡取得更多租賃成功的信心。

In other market notables, Atlanta, our largest market, completed 18 transactions for $133,000 square feet, of which 63% were new leases. And our DC Metro team extended lease for two of our large customers in this region, applied predictive technologies and international food policy to 2034 and 2035, respectively.

在其他市場中，我們最大的市場亞特蘭大完成了 18 筆交易，總面積為 133,000 平方英尺，其中 63% 為新租約。我們的 DC Metro 團隊將該地區的兩個大客戶的租約延長至 2034 年和 2035 年，應用了預測技術和國際食品政策。

Coming back to our overall portfolio, we remain positive about our future near-term leasing trends, but we may not be able to replicate the second quarter record leasing volume. That said, our leasing pipeline activity is quite good, with over 250,000 square feet of leases in late-stage negotiation or executed, and we are on pace to reach our norm of around 300,000 to 400,000 square feet of executed leases per quarter.

回到我們的整體投資組合，我們對未來的近期租賃趨勢仍然持樂觀態度，但我們可能無法複製第二季創紀錄的租賃量。也就是說，我們的租賃通路活動相當不錯，有超過 250,000 平方英尺的租賃處於後期談判或執行中，我們正在努力達到每季約 300,000 至 400,000 平方英尺執行租賃的標準。

Outstanding proposals sit at well over 2 million square feet, on par with our trailer 12 months. Given the strong pipeline and the limited amount of lease expirations through the remainder of the year, we are increasing our year-end projected lease percentage approximately 50 basis points to the 87.5% to 88.5% range.

未完成的提案面積遠超過 200 萬平方英尺，與我們的預告片 12 個月相當。鑑於今年剩餘時間內的租賃到期數量強勁且租賃到期數量有限，我們將年終預計租賃百分比提高約 50 個基點，達到 87.5% 至 88.5% 的範圍。

I'll now turn the call over to Chris for his comments on investment activity. Chris?

我現在將把電話轉給克里斯，徵求他對投資活動的評論。克里斯？

Thank you, George. As Brent mentioned earlier, subsequent to quarter end, we closed on the sale of 750 West John Carpenter in the Las Colinas sub-market of Dallas. The asset is a 12-story, approximately 315,000-square-foot office building, which was 46% leased as of June 30, 2024. While we remain highly committed to the Dallas market and our team there, we were approached by a local investor who expressed an interest in the asset.

謝謝你，喬治。正如布倫特之前提到的，季度末後，我們完成了達拉斯拉斯科利納斯子市場 750 West John Carpenter 的銷售。該資產為一棟 12 層樓、約 315,000 平方英尺的辦公大樓，截至 2024 年 6 月 30 日，租賃率為 46%。雖然我們仍然高度致力於達拉斯市場和我們在那裡的團隊，但一位當地投資者與我們聯繫，並表示對該資產感興趣。

We firmly believe in maintaining total objectivity around each of our assets, and as we evaluated the competitive positioning, the lack of walkable retail offerings, the persistent vacancy, and importantly, the significant amount of time and capital required to elevate the asset to today's standards, we simply felt our resources are better spent elsewhere, so we sold the asset in July in an all-cash transaction.

我們堅信對我們的每項資產保持完全客觀性，在我們評估競爭地位時，步行零售產品的缺乏、持續的空置，以及重要的是，將資產提升到當今標準所需的大量時間和資本，我們只是覺得我們的資源最好用在其他地方，所以我們在7 月以全現金交易的方式出售了該資產。

We continue to have preliminary dialogue around potential dispositions of non-core assets throughout our portfolio, but it's premature to speculate on any of those at this time. As for new investments, we continue to be highly engaged across our operating markets with an eye towards refining and enhancing our existing portfolio. We are tracking several opportunities across the Sun Belt, but we will be disciplined and patient on the acquisition front. As always, we will keep you informed of any material acquisition or disposition activity as appropriate.

我們繼續就整個投資組合中非核心資產的潛在處置進行初步對話，但目前對其中任何一項進行推測還為時過早。至於新投資，我們繼續高度參與我們的營運市場，並專注於完善和增強我們現有的投資組合。我們正在陽光地帶追蹤多個機會，但我們將在收購方面保持紀律和耐心。一如既往，我們將視情況向您通報任何重大收購或處置活動。

With that, I'll turn the call over to Bobby to review our financial results.

這樣，我會將電話轉給鮑比，以審查我們的財務表現。

Thank you, Chris. While we will be discussing some of this quarter's financial highlights today, please review the entire earnings release, the 10-Q, and the accompanying supplemental financial information which were filed yesterday, for more complete details.

謝謝你，克里斯。雖然我們今天將討論本季度的一些財務亮點，但請查看整個收益報告、10-Q 以及昨天提交的隨附補充財務信息，以了解更完整的詳細信息。

Core FFO per diluted share for the second quarter of 2024 was $0.37 per share versus $0.45 per diluted share for the second quarter of 2023. I do want to note that same-store property NOI, increased on both a cash and accrual basis during the second quarter of 2024 as compared to the same period a year ago.

2024 年第二季稀釋後每股核心 FFO 為每股 0.37 美元，而 2023 年第二季稀釋後每股核心 FFO 為每股 0.45 美元。我確實想指出，與去年同期相比，2024 年第二季的同店物業 NOI 按現金和權責發生製計算均有所增加。

Core FFO for the second quarter of 2024 reflects this property level income but is offset by approximately $0.06 per share of increased net interest expense as well as decreased operating income as a result of the sale of One Lincoln Park during the first quarter of 2024 and, as we've discussed on this call over the last several quarters, the expiration of two large leases during the first six months of this year.

2024 年第二季度的核心 FFO 反映了這一財產水平收入，但被每股約 0.06 美元的淨利息支出增加以及 2024 年第一季出售 One Lincoln Park 導致的營業收入減少所抵消，正如我們在過去幾個季度的電話會議中討論的那樣，今年前六個月有兩項大型租約到期。

AFFO generated during the second quarter of 2024 was approximately $28 million, providing ample coverage of the current $15 million quarterly dividend and funding our foreseeable capital needs. CapEx, for the quarter, however, remained elevated, as we work to complete this year four major building redevelopment projects which today have a total of only approximately $10 million of remaining capital expenditures to complete.

2024 年第二季產生的 AFFO 約為 2,800 萬美元，足以滿足當前 1,500 萬美元的季度股息，並為我們可預見的資本需求提供資金。然而，本季的資本支出仍然較高，因為我們今年致力於完成四個主要建築重建項目，而這些項目目前總共只有約 1,000 萬美元的剩餘資本支出需要完成。

Turning to the balance sheet, as Brent has already mentioned, we issued in June $400 million in senior unsecured notes at a 6.875% coupon, a marked improvement compared to our 2023 issuance, which we believe demonstrates an increased appetite for office paper and particularly Piedmont's high-quality portfolio.

談到資產負債表，正如布倫特已經提到的那樣，我們在6 月以6.875% 的票面利率發行了4 億美元的高級無擔保票據，與我們2023 年的發行相比有了顯著改善，我們認為這表明人們對辦公用紙，尤其是皮埃蒙特的辦公用紙的需求增加高品質的投資組合。

The bulk of the proceeds from the issuance of the notes were used immediately to pay off the $230 million balance on our $600 million revolver as well as the remaining $25 million balance on an unsecured bank term loan that was scheduled to mature early next year.

發行票據的大部分收益立即用於償還我們 6 億美元循環貸款的 2.3 億美元餘額，以及定於明年初到期的無擔保銀行定期貸款的剩餘 2500 萬美元餘額。

The remaining debt proceeds along with funds received from any dispositions and our unused line of credit are earmarked to repay a $250 million, 4.8% fixed-rate term loan that matures late in the first quarter of next year. Until its maturity, we currently intend to invest the unused portion of the bond proceeds accretively at higher interest rates. We currently have no other remaining final debt maturities until 2027.

剩餘的債務收益以及從任何處置中收到的資金以及我們未使用的信貸額度均指定用於償還將於明年第一季末到期的 2.5 億美元、利率 4.8% 的固定利率定期貸款。在其到期之前，我們目前打算以更高的利率對債券收益的未使用部分進行增值投資。目前我們在 2027 年之前沒有其他剩餘的最終債務到期。

As a result of the $400 million refinancing activity, net interest expense will increase about $0.01 per share, per quarter beginning in the third quarter of this year. This increase along with the sale of 750 West John Carpenter in Dallas, subsequent to the end of the quarter will impact our guidance for the rest of the year.

由於 4 億美元的再融資活動，從今年第三季開始，每季淨利息支出將增加約 0.01 美元。這一增長以及本季末後達拉斯 750 West John Carpenter 的銷售將影響我們對今年剩餘時間的指導。

Therefore, we announced yesterday that we're narrowing our 2024 annual core FFO guidance to a range of $1.46 to $1.52 per share, moving the midpoint to $1.49 per share. I encourage you to review the earnings release for more specific metrics on guidance, but I will note, we are increasing guidance for same-store NOI on both a cash and accrual basis to between 2% and 3% for the current year, up from our previous guidance of a flat to 2% increase.

因此，我們昨天宣布，我們將 2024 年年度核心 FFO 指導範圍縮小至每股 1.46 美元至 1.52 美元，中點調整至每股 1.49 美元。我鼓勵您查看收益發布，以了解更具體的指導指標，但我要指出的是，我們將本年度同店 NOI 的現金和權責發生製指導提高至 2% 至 3%，高於我們之前的指導是持平至2% 的增幅。

As we indicated on our last few earnings calls, the third quarter of this year is expected to be our FFO earnings trough due primarily to the timing of two large lease expirations. With that said, with relatively low lease expirations over the next few quarters and strong leasing results to-date plus the continuing leasing momentum that George mentioned, we anticipate FFO growth per share to begin improving later this year followed by growing cash generation later next year.

正如我們在最近幾次財報電話會議上指出的那樣，預計今年第三季將是我們的 FFO 盈利低谷，這主要是由於兩次大型租賃到期的時間表。話雖如此，由於未來幾季的租賃到期時間相對較低，且迄今為止的租賃業績強勁，加上George 提到的持續租賃勢頭，我們預計FFO 每股成長將在今年稍後開始改善，隨後現金生成將在明年晚些時候增長。

Our confidence in this growth is due to the difference between our current reported lease percentage of 87.3% and the percentage of leases that have commenced and began paying full cash rents. This difference is now 850 basis points, the widest that gap has been in over eight years. The gap is due to a backlog of 1.6 million square feet of executed leases yet to commence and related rent abatements not yet burned off. This backlog of executed leases represents over $50 million annually of future rents yet to commence,

我們對此成長的信心是由於我們目前報告的 87.3% 的租賃百分比與已經開始並開始支付全額現金租金的租賃百分比之間的差異。目前這一差距已達 850 個基點，為八年來最大差距。造成這一缺口的原因是積壓了 160 萬平方英尺的已執行租賃尚未開始，且相關租金減免尚未耗盡。已執行的租賃積壓相當於每年超過 5000 萬美元的未來租金，但尚未開始，

Our current analysis of this timing difference between the executed lease percentage and what we refer to as cash-paying economic lease percentage is included for your review on page 37 in our quarterly financial supplement, which was furnished last night, along with an analysis of major leases yet to commence for vacant space and larger leases and abatement, which are set forth on page 38 of the supplement.

我們目前對已執行租賃百分比與我們所說的現金支付經濟租賃百分比之間的時間差異的分析包含在我們昨晚提供的季度財務補充材料第37 頁上，供您審閱，同時還包括對主要因素的分析。

In keeping with our normal practice, due to the uncertain nature of the capital markets environment, the revised guidance we've provided does not have any speculative acquisitions or dispositions, nor does it currently contemplate any additional refinancing activity this year. Of course, we will adjust and communicate to you the impacts on guidance if any of these transactions occur.

依照我們的慣例，由於資本市場環境的不確定性，我們提供的修訂後指引不存在任何投機性收購或處置，目前也不考慮今年進行任何額外的再融資活動。當然，如果發生任何此類交易，我們將調整並向您傳達對指導的影響。

With that, I'll turn the call back over to Brent for closing comments.

這樣，我會將電話轉回布倫特以徵求結束意見。

Thank you, George, Chris, and Bobby. We continue to focus on our core business, designing, managing, and leasing great workplace environments. The investments we've made in our portfolios, combined with our leasing strategy, continues to resonate with existing and prospective tenants alike. Piedmont's balance sheet is well positioned, having effectively addressed all of our final debt maturities until 2027 and having the full availability of our $600 million line of credit. Our dividend is right-sized and our lease expiration schedule very manageable.

謝謝喬治、克里斯和鮑比。我們繼續專注於我們的核心業務，設計、管理和租賃良好的工作環境。我們對投資組合的投資與我們的租賃策略相結合，繼續引起現有和潛在租戶的共鳴。皮埃蒙特的資產負債表狀況良好，有效解決了 2027 年之前的所有最終債務到期問題，並充分利用了 6 億美元的信貸額度。我們的股息規模合適，而且我們的租賃到期時間表非常易於管理。

We continue to be selective with capital deployment and anticipate being a net seller of assets to continue to leverage the balance sheet and enhance already ample liquidity resources. As indicated when we originally introduced our 2024 guidance back in February, we expected the impact of increased interest expense and recent tenant vacates to result in an earnings and occupancy drop during this third quarter of 2024, and we anticipate a return to growth in subsequent quarters.

我們繼續有選擇性地進行資本配置，並預計成為資產淨賣家，以繼續利用資產負債表並增強本已充裕的流動性資源。正如我們在2 月最初推出2024 年指引時所指出的，我們預計利息支出增加和近期租戶騰出的影響將導致2024 年第三季的收入和入住率下降，並且我們預計隨後幾季將恢復增長。

With that, I'll now ask the operator to provide our listeners with instructions on how they can submit their questions. We will attempt to answer all your questions now, but we will make appropriate later public disclosure if necessary.

現在，我將要求接線員向我們的聽眾提供如何提交問題的說明。我們現在將嘗試回答您的所有問題，但如有必要，我們將在稍後進行適當的公開披露。

Certainly. The floor is now open for questions. (Operator Instructions) Nick Thillman, Baird.

當然。現在可以提問。（操作員說明）Nick Thillman，Baird。

Hey, guys. Appreciate the update on the leasing front. Good momentum there. I guess Amazon lease is done. The next big one, I guess, is City of New York. So any update on the discussions there and then maybe plans for that asset longer term?

嘿，夥計們。感謝租賃方面的更新。那裡勢頭良好。我想亞馬遜的租賃已經完成了。我猜，下一個重要的城市是紐約市。那麼那裡的討論有什麼更新，然後可能是該資產的長期計劃嗎？

I think as you did point out, with the renewal of Amazon, as we discussed last quarter, and Ryan as well, that has really put our large lease expirations to bed now or at least known in the market all the way up until 2026. So a great runway we feel like in terms of being able to continue to get lease absorption of portfolio. Looking ahead to 2026, as you point out, New York City is the largest of those expirations. As we noted previously on calls, that dialogue continues to be very favorable and trending towards a renewal.

我認為，正如您所指出的，隨著亞馬遜的續約（正如我們上季度討論的那樣）以及瑞安的續約，這確實讓我們的大型租賃到期現在已經結束，或者至少在市場上一直知道到2026 年。因此，我們覺得這是一個很好的跑道，能夠繼續吸收投資組合的租賃。展望 2026 年，正如您所指出的，紐約市是其中最大的到期日。正如我們之前在電話會議中指出的那樣，對話仍然非常有利，並且有恢復的趨勢。

We would expect that we'd like to dispose the asset. When we feel like the capital market is stabilized in New York and that lease is consummated, again, likely to be sometime in 2025. It just depends on the receptivity in the overall marketplace at that time. But as we noted, it is our intention to dispose the asset more near term.

我們預計我們願意處置該資產。當我們感覺到紐約資本市場穩定且租賃完成時，很可能會在 2025 年的某個時候。這只取決於當時整個市場的接受度。但正如我們所指出的，我們打算在短期內處置該資產。

And then maybe touching on dispositions, the John Carpenter sale under leased asset, what's the earnings effect of that sale? Is there plans for some of these other assets that have a little bit more vacancy to recycle those or is this more of a one-off?

然後也許會涉及處置，約翰·卡彭特在租賃資產下的出售，該出售的收益影響是什麼？是否有計劃對其他一些有更多空置的資產進行回收，或者這更像是一次性的？

Great question. I think as a platform, we're very adept at evaluating older, we call it 80s, 90s, 2000s vintage assets and their viability in the modern office environment. We take a close lens to our own portfolio. Frankly, West John Carpenter Freeway had a number of attributes that just didn't fit what we would deem an asset worthy of the Piedmont portfolio. I think if we look at elsewhere in the portfolio where there might be elevated vacancy levels, really resides in, call it, five assets.

很好的問題。我認為作為一個平台，我們非常擅長評估較舊的，我們稱之為 80 年代、90 年代、2000 年代的老式資產及其在現代辦公室環境中的可行性。我們密切注意自己的投資組合。坦白說，西約翰卡彭特高速公路有許多屬性不符合我們認為值得皮埃蒙特投資組合的資產。我認為，如果我們看看投資組合中可能存在較高空缺水平的其他地方，實際上是五種資產。

One of them we just disposed of, West John Carpenter Freeway. The other being 25 Burlington Mall road. We feel very good about that asset's position in the market as one of the top five assets in that sub-market. Admittedly, it is a little bit slower just given the tech lack of focus on leasing right now. The other one would be our Lost Cleanest asset where we did have a tenant vacate during the quarter, but we still feel like that is very well positioned at Las Colinas Corporate Center, amenitized, and we have good leasing momentum there.

我們剛剛處置了其中之一，西約翰卡彭特高速公路。另一個是伯靈頓購物中心路 25 號。我們對該資產作為該子市場中排名前五的資產之一的市場地位感到非常滿意。不可否認，鑑於目前技術缺乏對租賃的關注，它的速度有點慢。另一個是我們失去的最乾淨的資產，我們在本季度確實有租戶騰出，但我們仍然覺得它在拉斯科利納斯企業中心的位置非常好，設施齊全，而且我們在那裡有良好的租賃勢頭。

Then the other ones would be in the district, which we've talked about being very challenged overall in the sub-market. I feel like overall, the portfolio, this is probably one of the last ones, if not the last one that we would say needs to be pruned. We feel very good about what we have moving forward. Now, specifically to the West John Carpenter Freeway in terms of impact on earnings, that would be extremely limited, again, maybe $0.01 or so impact.

然後其他的將在該地區，我們已經討論過該地區在子市場中總體上面臨很大的挑戰。我覺得總體而言，投資組合，這可能是最後一個，如果不是我們所說的最後一個需要修剪的投資組合。我們對所取得的進展感到非常滿意。現在，特別是對於西約翰卡彭特高速公路，就對收益的影響而言，這將是極其有限的，再次，可能是 0.01 美元左右的影響。

How much capital do you think you would have had to put in that space to actually basically lease that one up?

您認為您需要在該空間中投入多少資金才能真正租用該空間？

Great question. That would have been approaching probably $100 a foot and base building capital as well as tenant-related lease-up capital. Unique to that asset, it was built actually to have two towers adjoined for most of the common areas. So if you think about a refresh, there's a lot of extra ground to cover for a 300,000 square foot building. And then once you add in carrying costs that number probably would approach or exceed $100 additional capital per square foot on the building.

很好的問題。這可能接近每英尺 100 美元，加上基礎建築資本以及與租戶相關的租賃資本。該資產的獨特之處在於，它的大部分公共區域實際上是由兩座相鄰的塔樓建造的。因此，如果您考慮進行翻新，一座 300,000 平方英尺的建築還需要大量額外的土地。一旦算上持有成本，這個數字可能會接近或超過建築物每平方英尺 100 美元的額外資本。

And then maybe last one for George. Just on the leasing pipeline overall, can you basically break down renewals versus new leasing within that? And then kind of the average size of the tenants you're kind of seeing and if anything between the markets that commentary appreciate as well?

然後也許是喬治的最後一個。就整個租賃管道而言，您能否基本上將續租與新租賃分開？然後，您所看到的租戶的平均規模以及評論所讚賞的市場之間是否存在任何差異？

Certainly. Nick, good morning. Look our pipe as we mentioned in our recent release we just spoke about 250,000 square feet and late stage activity being legal or executed. About half of that is for new activity and in that new activity around that's really happening at every one of our markets.

當然。尼克，早安。看看我們的管道，正如我們在最近的新聞稿中提到的那樣，我們剛剛談到了大約 250,000 平方英尺，並且後期活動是合法的或正在執行的。其中大約一半用於新活動，而圍繞這一點的新活動確實發生在我們的每個市場上。

Digging deeper into the proposal stage I've mentioned again two million square feet just recent lease, 70% of that is for new activity. I would say that the bulk of that of that activity is happening in Minneapolis, Dallas and Atlanta. I mean Minneapolis is a new market that we're starting to see a lot more demand. I mean it's pretty obvious as a result of US Bank vacating a large percentage of their assets in that marketplace.

深入研究提案階段，我再次提到最近租賃的 200 萬平方英尺，其中 70% 用於新活動。我想說，大部分活動都發生在明尼阿波利斯、達拉斯和亞特蘭大。我的意思是明尼阿波利斯是一個新市場，我們開始看到更多的需求。我的意思是，這是非常明顯的，因為美國銀行在該市場上騰出了很大一部分資產。

And then looking a little further out in terms of tour velocity, we've been seeing in the third quarter what we've been seeing for the past several quarters. And then if you look at what's happening in July we're really happy about that's at the high end of our tour velocity range. So when you combine that early stage and late stage recovery -- early stage or late stage activity we feel pretty good about why we but again above the lease percentage guidance by the end of the year between 87.5% to 88.5%.

然後，從巡迴速度來看，我們在第三季看到了過去幾季的情況。然後，如果你看看七月發生的事情，我們真的很高興這處於我們巡迴速度範圍的高端。因此，當你將早期階段和後期階段的恢復（早期階段或後期階段的活動）結合起來時，我們對為什麼我們感到非常滿意，但到年底我們再次高於租賃百分比指導，介於87.5% 至88.5 % 之間。

That's it for me. Very helpful. Thank you, guys.

對我來說就是這樣。非常有幫助。謝謝你們，夥計們。

Dylan Burzinski, Green Street.

迪倫·布爾津斯基，格林街。

Most of mine have been answered by now, but just so trying to think through obviously a great quarter on the leasing front. Great to hear you guys increasing leasing guidance for the year. Can you maybe just talk about some of the drivers of that pickup in leasing activity? Is it sort of a return to a more normalized leasing environment?

到目前為止，我的大部分問題都已得到解答，但我只是在努力思考租賃方面的一個重要季度。很高興聽到你們增加了今年的租賃指導。您能否談談租賃活動回升的一些驅動因素？這是否是回歸到更正常化的租賃環境？

Is that more certainty on the macro -- or less uncertainty on the macro front? Can you guys just give us some further details as to what you guys think is sort of driving that pickup?

宏觀的確定性增加了，還是不確定性減少了？你們能否提供我們一些進一步的細節，說明你們認為駕駛皮卡的方式是什麼？

I think into a couple of different factors. One, unique to our own portfolio, I think our focus on amenities and having a right level of service has continued to benefit us in the retention ratio on average at or exceeding 70%. But I'd also say from a new tenant leasing activity, as we've noted on prior calls, our focus and our leasing strategy around small, medium enterprises and those that take generally, call it, a half a floor or less in terms of space has been incremental in strength both in depth, but also in overall leasing velocity to backfill what has been historically these larger tenants that are giving back a larger being 50,000 square feet or greater on average about 30% of their space.

我考慮了幾個不同的因素。第一，我們自己的產品組合是獨一無二的，我認為我們對設施和適當水平服務的關注繼續使我們受益，平均保留率達到或超過 70%。但我還想說，從新的租戶租賃活動來看，正如我們在之前的電話會議中所指出的那樣，我們的重點和租賃策略圍繞中小型企業以及通常採用半層樓或以下的企業空間的強度在深度和整體租賃速度上都在不斷增加，以回填歷史上這些較大的租戶，這些租戶平均回饋了50,000 平方英尺或更大的面積，平均約佔其空間的30%。

Now if we want to delve into specific industries that would vary by market in terms of some of what we're seeing. But historically now over the last year we've seen really professional services come back in a meaningful way, a buyer --so financial as well as I'd say including consumer goods as well as retail and industrials. So I think it has been a continued robust from US economy and frankly non-tech and non-large tech -- sorry, non-large corporate have been continuing to be those drivers and depending on which market you're in.

現在，如果我們想深入研究特定行業，根據我們所看到的一些內容，這些行業會因市場而異。但從歷史上看，去年我們已經看到真正專業的服務以有意義的方式回歸，買家——金融以及我想說的包括消費品、零售和工業。因此，我認為美國經濟持續強勁，坦白說，非科技和非大型科技——抱歉，非大型企業一直是這些驅動力，這取決於你所在的市場。

(Operator Instructions) Michael Lewis, Truist Securities.

（操作員指示）Michael Lewis，Truist 證券公司。

So this signed, but not commenced sometimes ties my head up enough, so you talked about the $50 million of rent associated with those leases, $30 million of NOI is about $0.24 per share. But you're obviously over the next several quarters and ongoing will be signing new leases that have new free rent periods. I guess that spread between signed and not commenced versus rent-paying occupancy has widened, should we think about what a normalized level would be and what that $0.24 of upside ultimately evens out to? I'm just trying to think about what the real earnings power that's built up in that leasing you've done over the last of our quarters. What that really is?

因此，這個已簽署但尚未開始的合約有時讓我很困惑，因此您談到了與這些租賃相關的 5000 萬美元租金，3000 萬美元的 NOI 約為每股 0.24 美元。但顯然，在接下來的幾個季度中，您將持續簽署具有新的免費租金期的新租約。我猜想已簽約和未開業與支付租金的入住率之間的差距已經擴大，我們是否應該考慮正常化水平是什麼以及 0.24 美元的上升空間最終會達到什麼水平？我只是想思考一下你們在我們最後一個季度所做的租賃中所累積的實際獲利能力。那到底是什麼？

Hey, Michael. It's Bobby. I'm going to address part of that. If you look back over the last 10 years, that gap between economic lease percentage and the reported lease percentage is about 4% to 5%. So we picked up about 3% gap here which should close over time. It is what makes us optimistic about earnings. Yes, you do have some dispositions that will -- I mean, not dispositions some expirations that will take place, but we have low expirations here over the next few quarters. So we think it will be accretive to us as that gap closes back towards 4%.

嘿，麥可。是鮑比。我將討論其中的一部分。如果回顧過去 10 年，經濟租賃百分比與報告的租賃百分比之間的差距約為 4% 至 5%。因此，我們在這裡發現了大約 3% 的差距，這一差距應該會隨著時間的推移而縮小。這讓我們對獲利持樂觀態度。是的，你確實有一些處置，我的意思是，不是一些即將到期的處置，但我們在接下來的幾個季度的到期時間較低。因此，我們認為，隨著這一差距縮小至 4%，這將對我們有利。

I would say, too, to add to that Michael, and appreciate joining us today, it's going to take some time for that $51 million to come into the portfolio as we've talked about, call it, anywhere from 12 to 24 months. I'd say a fair portion of that is, call it, 60% of it is in the current abatement period with 40% still and yet to commence. But as that comes into the portfolio, as we talked about, that will backfill what we know -- now vacate at Excelsior crossings and at Meridian crossings.

我還要說的是，邁克爾，並感謝今天加入我們，這 5,100 萬美元需要一些時間才能進入投資組合，正如我們所說的那樣，從 12 到 24 個月不等。我想說，其中相當一部分是，60% 處於目前的減排期，40% 尚未開始。但正如我們所討論的，當它進入投資組合時，這將回填我們所知道的——現在在 Excelsior 交叉點和 Meridian 交叉點空出。

And so that exact timing is always difficult to determine, and it's it also somewhat impacted, as you point out, by the volume of leasing that we achieve going forward. And so frankly -- ironically, that gap staying wide is a good thing because that will mean that we are continuing to have this excessive leasing velocity and increasing that backlog. As we approach 90% leased, I would imagine that as Bobby points out gets to the more normalized level which historically has been in that, call it, 4.5% ZIP code and so the gap -- 4.5% gap between the leased percentage and an economic.

因此，確切的時間總是很難確定，而且正如您所指出的，我們未來實現的租賃量也在一定程度上受到影響。坦白說，諷刺的是，這種差距保持較大是一件好事，因為這意味著我們將繼續保持這種過高的租賃速度並增加積壓。當我們接近90% 的租賃率時，我可以想像，正如Bobby 指出的那樣，達到了歷史上更規範的水平，稱之為4.5% 郵政編碼，因此存在差距——租賃百分比與實際租賃百分比之間的4.5% 差距。

And so if I had to specifically tell you when that would be somewhat be correlated to when we reach 90% occupancy. And that's probably going to take us, call it, another 18 to 24 months. But we do feel like with the momentum we see, it's possible to exceed that and do it even sooner. And that would again make that widening gap remain here in the near term. I hope that gives you a little bit more clarity.

因此，如果我必須具體告訴您什麼時間，這與我們達到 90% 入住率的時間有些相關。這可能還需要 18 到 24 個月的時間。但我們確實覺得，以我們所看到的勢頭，有可能超越這個目標，甚至更快。這將再次使不斷擴大的差距在短期內繼續存在。我希望這能讓你更清楚。

Yeah, no, that's helpful. It's nice to have some revenue in the hopper on the way. You mentioned Excelsior and Meridian, one of the nice things about this is we could start talking about US Bancorp as a looming move out and now it becomes redevelopment upside. So the three redevelopment projects that you have, is there anything to say as far as cost timetables, potential NOI, all that stuff related to the redevelopment?

是的，不，這很有幫助。很高興能在途中獲得一些收入。你提到了 Excelsior 和 Meridian，其中一件好事是我們可以開始談論 US Bancorp，這是一個迫在眉睫的搬遷，現在它變成了重建的優勢。那麼，您擁有的三個重建項目，對於成本時間表、潛在的 NOI 以及與重建相關的所有內容，有什麼要說的嗎？

Yes. I would say, there are three assets in the redevelopment pool. One of them will be coming out of the redevelopment pool sometime next year. It will go into service or in operation late this year. And as we know, usually, it will stay out of service for a year until they reach 80% occupancy. The other two we just added into the redevelopment pool. You noted two of Minneapolis, Meridian and Excelsior crossings. Both of those are under, what I would call, a more modest but meaningful renovation in terms of cost per square foot for those two buildings running about $15 to $20 a foot in base building and then we'll have lease up.

是的。我想說的是，重建池中有三項資產。其中之一將於明年某個時候從重建池中出來。它將在今年晚些時候投入使用或投入營運。據我們所知，通常情況下，它會停止服務一年，直到入住率達到 80%。另外兩個我們剛剛添加到重建池中。您注意到明尼阿波利斯、子午線和埃克塞爾西奧的兩個十字路口。我稱之為，這兩座建築都在每平方英尺的成本方面進行了更適度但更有意義的改造，這兩座建築的基礎建築每英尺約為 15 至 20 美元，然後我們將進行租賃。

The reason they're going out of service. There's -- those were single-tenant buildings designed as such. So there's a need to really reposition them not only in the market because they haven’t been marketed for almost a decade but also to make them multi-tenant corridors, bathrooms base building, new lobby, et cetera. But an overall capital spend think about the size of those two buildings you're talking about somewhere in the neighborhood together of around $12 million of base building costs and expense.

他們停止服務的原因。那些是這樣設計的單一租戶建築。因此，不僅需要在市場上真正重新定位它們，因為它們已經近十年沒有上市，而且還需要使它們成為多租戶走廊、浴室基礎建築、新大廳等。但整體資本支出考慮一下您所談論的位於附近某處的兩座建築的規模，基礎建築成本和費用合計約為 1200 萬美元。

So not in the grand scheme of our balance sheet meaningful, which is why we like redevelopment opportunities rather than ground-up. We can get to the cash flow faster and frankly we think mitigate some of that downtime. Receptivity in the market for both those assets has been very good. We've noted on prior earnings calls, particularly, Meridian, which is a little bit further along. We've actually already had a little bit leasing success now about 10% leased at that asset with a lot of traction with call it 40,000 to 50,000 square foot tenancy.

因此，在我們資產負債表的宏偉計劃中沒有意義，這就是為什麼我們喜歡重建機會而不是從頭開始。我們可以更快地獲得現金流，坦白說，我們認為可以減少一些停機時間。市場對這兩種資產的接受度都非常好。我們在之前的財報電話會議上註意到了，特別是 Meridian，它的進展稍遠一些。事實上，我們已經在租賃方面取得了一些成功，目前該資產的出租率約為 10%，具有很大的吸引力，可以稱之為 40,000 至 50,000 平方英尺的租賃。

And then the Excelsior building is underway as well but a little bit behind in terms of its progress. But both of those will really be able to take tenancy through and actually walk through towards the end of the year. They are in full construction mode at this point in time.

Excelsior 大樓也在建設中，但進度有點落後。但這兩家公司都將真正能夠在年底前完成租賃並真正完成。目前它們正處於全面施工模式。

In terms of their cost again, pretty modest across all three, but I would expect that that capital is completed. It's been, call it, by the middle of next year. If you think about most of our larger redevelopment projects, we do think that will be wrapped up by the middle of 2025 and really will be in a more steady state kind of a base building capital spend across the developed -- across the portfolio at that time.

再次就其成本而言，這三者的成本都相當適中，但我預計該資本已完成。這麼說吧，到明年年中了。如果你考慮我們大多數較大的再開發項目，我們確實認為這些項目將在2025 年中期完成，並且實際上將處於一種更加穩定的狀態，即整個發達國家的基礎建設資本支出——整個投資組合時間。

There appears to be no further questions in queue. At this time, I would now like to turn the floor back over to Brent Smith for any closing remarks.

隊列中似乎沒有其他問題了。現在，我想將發言權交還給布倫特史密斯，讓其發表結束語。

Thank you very much. Appreciate everybody joining us today. Hopefully, you've taken away that we're very excited about the track record that we've created from a leasing and operational growth perspective here over the last, call it, 12 months and looking ahead, and the repositioning of the balance sheet also really giving us an opportunity with no major debt maturities ahead of us that we can now kind of reposition and focus the platform for future growth.

非常感謝。感謝今天加入我們的所有人。希望您已經明白，我們對過去 12 個月和展望未來以及資產負債表的重新定位從租賃和運營增長角度創造的業績記錄感到非常興奮這也確實給了我們一個機會，我們現在可以重新定位並專注於未來成長的平台，而我們不會面臨重大債務到期。

We'd love to continue to talk to investors about that will be at the Bank of America Conference on September 11th and 12th in New York City. But as I've said on a prior call, we encourage investors to really come down to Atlanta and meet with management and tour the assets and split it after doing here and really to be able to appreciate the story and what's really happening on the ground, if you will within the submarkets in which we operate and how we're extrapolating out this platform across our other markets. Again, if you have an opportunity, please contact Bob or Jennifer if you're interested in meeting and we appreciate everybody joining today. Thank you.

我們很樂意在 9 月 11 日至 12 日於紐約舉行的美國銀行會議上繼續與投資者討論此事。但正如我在之前的電話會議上所說，我們鼓勵投資者真正來到亞特蘭大，與管理層會面，參觀資產，並在這裡完成後進行分割，真正能夠欣賞這個故事和實地發生的事情，如果您願意了解我們經營的子市場以及我們如何在其他市場中推廣該平台。再次強調，如果您有機會，如果您有興趣會面，請聯絡鮑勃或珍妮佛，我們感謝今天大家的加入。謝謝。

Thank you everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝大家。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。