American Assets Trust Inc (AAT) 2024 Q2 法說會逐字稿

Welcome to American Assets Trust Inc's second quarter 2024 earnings call. As a reminder, today's conference is being recorded. Please note that statements made on this conference call include forward-looking statements based on current expectations which statements are subject to risks and uncertainties discussed in the company's filings with the SEC.

歡迎參加美國資產信託公司 2024 年第二季財報電話會議。提醒一下，今天的會議正在錄製中。請注意，本次電話會議上發表的聲明包括基於當前預期的前瞻性聲明，這些聲明受到公司向 SEC 提交的文件中討論的風險和不確定性的影響。

You are cautioned not to place undue reliance on these forward-looking statements, as actual events could cause the company's results to differ materially from these forward-looking statements. Yesterday afternoon, American Assets Trust earnings release and supplemental information were furnished to the SEC on form 8-K. Both are now available on the Investors section of its website, americanassetstrust.com.

請您注意不要過度依賴這些前瞻性陳述，因為實際事件可能導致本公司的表現與這些前瞻性陳述有重大差異。昨天下午，美國資產信託公司的收益發布和補充資訊以 8-K 表格形式提交給了 SEC。兩者現已在其網站 americanassetstrust.com 的投資者部分提供。

It's now my pleasure to turn the call over to Ernest Rady, Chairman and CEO of American Assets Trust.

現在我很高興將電話轉給美國資產信託公司董事長兼執行長歐內斯特·拉迪。

Good morning, everyone. At American Assets Trust, I can assure you every strategic and operational decision. He's driven by our commitment to maximize both long and short and long-term value. This dedication is reflected in our efforts to maintain a robust balance sheet and our continuous investment in enhancing our irreplaceable properties, ensuring they remain top two in their respective markets.

大家早安。在美國資產信託公司，我可以向您保證每項策略和營運決策。我們致力於實現長、短期和長期價值最大化，這也是他的動力。這種奉獻精神體現在我們努力維持穩健的資產負債表，以及不斷投資增強我們不可替代的資產，確保它們在各自市場中保持前兩名的地位。

In Q2 2024, our operating from fundamentals once again exceeded expectations. Even amidst much of the pessimistic market sentiment surrounding commercial real estate, particularly in the office sector, very upsetting to me, frankly. Our strong performance has prompted us to raise our full year guidance once more, underscoring our confidence in our earnings trajectory for the remainder of 2024.

2024年第二季度，我們的基本面經營再次超乎預期。坦白說，即使在圍繞商業房地產（尤其是辦公大樓領域）的悲觀市場情緒中，我也感到非常沮喪。我們的強勁表現促使我們再次上調全年指引，突顯了我們對 2024 年剩餘時間獲利軌跡的信心。

This highlights success highlights the exceptional quality of our properties, exceptional ability of our people and the expertise of our team to drive our long-term growth and shareholder wealth creation on that note, I am pleased to announce that Adam Wyll, who has been with us now for 20 years, right?

這項成功凸顯了我們物業的卓越品質、我們員工的卓越能力以及我們團隊的專業知識，以推動我們的長期成長和股東財富創造。我們現在已經20年了，對嗎？

Correct.

正確的。

You joined us when you were three right Adam? We have a (multiple speakers) (inaudible) our current President and CEO will be stepping into the role of CEO on January 1, 2025. Adam has been an integral part of our team contributing at all levels of our organization for two decades.

你三歲的時候就加入了我們，對吧亞當？我們（多名發言者）（聽不清楚）現任總裁兼執行長將於 2025 年 1 月 1 日接任執行長一職。二十年來，Adam 一直是我們團隊不可或缺的一部分，為我們組織的各個層面做出了貢獻。

His leadership expertise, execution, executional skills and deep understanding of the real estate industry and our portfolio has been invaluable to our success. Thank you, Adam. Adam's promotion is to CEO is a natural progression for both him and American Assets Trust, reflecting the confidence that our Board and I have in his ability to steer our company toward continued success.

他的領導專業知識、執行力、執行技巧以及對房地產行業和我們投資組合的深刻理解對我們的成功至關重要。謝謝你，亞當。亞當晉升為執行長對於他和美國資產信託公司來說都是一個自然的過程，這反映出我和董事會對他帶領我們公司走向持續成功的能力充滿信心。

Congratulations. And again, thanks, Adam. To our investors and stakeholders, I want to assure you that this transition will be seamless. I'm in good health, thank goodness and will assume the role of Executive Chairman on January 1, 2025, continuing to lead our Board meetings and strategy.

恭喜。再次感謝，亞當。對於我們的投資者和利益相關者，我想向你們保證，這項過渡將是無縫的。感謝上帝，我身體狀況良好，並將於 2025 年 1 月 1 日擔任執行主席，繼續領導我們的董事會會議和策略。

Additionally, our incredibly talented, dedicated, long-term, long-tenured executive management team will remain intact, including our CFO, Bob Barton, who suggests he has another decade on him at AAT at least. He joined when he was four.

此外，我們才華橫溢、敬業、長期、長期任職的執行管理團隊將保持不變，其中包括我們的財務長 Bob Barton，他表示自己在 AAT 至少還有十年的時間。他四歲時就加入了。

I am continually impressed by this team's cohesion, collaborative spirit, and experience, which fosters a strong sense of trust and mutual respect, enabling them to tackle challenges effectively and drive innovation. My colleagues Adam, Bob, Steve, Chris, and Abigail will cover our various asset segments, financial results and update guidance shortly.

這個團隊的凝聚力、協作精神和經驗給我留下了深刻的印象，這培養了強烈的信任感和相互尊重，使他們能夠有效應對挑戰並推動創新。我的同事亞當、鮑伯、史蒂夫、克里斯和阿比蓋爾很快就會介紹我們的各個資產領域、財務表現和更新指導。

But first, I am pleased to announce the Board of Directors has approved a quarterly dividend of $0.335 per share for the third quarter. This decision highlights our strong financial performance and emphasize the Board's belief in our continued success. The dividend will be paid on September 19, to shareholders of record September 5. I'd like to express our sincere confidence and gratitude for your support and allowing us to steward your company.

但首先，我很高興地宣布，董事會已批准第三季每股 0.335 美元的季度股息。這項決定凸顯了我們強勁的財務業績，並強調了董事會對我們持續成功的信念。股利將於 9 月 19 日支付給 9 月 5 日登記在冊的股東。我謹對您的支持以及允許我們管理您的公司表示真誠的信心和感謝。

Now I'll hand the call over to Adam to commence a deeper dive into our quarterly performance and future outlook.

現在，我將把電話交給 Adam，開始更深入地探討我們的季度業績和未來前景。

Thanks, Ernest.

謝謝，歐內斯特。

I am honored to take on the CEO role at the start of 2025. Ernest, your entrepreneurial spirit, visionary leadership, business acumen, and mentorship have been pivotal, not only for my development, but also for the entire management team for which we are immensely grateful. I sincerely appreciate the trust you and our Board have placed in my leadership. I'm also thankful for Bob's support as well as all of my colleagues on our exceptional management team.

我很榮幸能夠在 2025 年初擔任執行長一職。歐內斯特，您的創業精神、富有遠見的領導力、商業頭腦和指導都至關重要，不僅對我的發展，而且對整個管理團隊也至關重要，我們對此深表感謝。我衷心感謝您和我們的董事會對我的領導的信任。我還感謝鮑伯以及我們卓越管理團隊中所有同事的支持。

Our daily collaboration has fostered a true sense of family among us as we've navigated numerous challenges and celebrated many successes over the years. Teamwork and resilience thrive at American Assets Trust thanks to the tone Ernest has set at the top.

多年來，我們克服了無數挑戰並取得了許多成功，日常合作在我們之間培養了真正的家庭意識。由於歐內斯特在高層所定下的基調，美國資產信託公司的團隊合作和韌性得以蓬勃發展。

Turning to our results, as Ernest mentioned, we have once again delivered strong operating performance across all segments of our diversified portfolio, including the highest quality office, retail, multifamily, and mixed-use properties. In times of economic and business unpredictability, it is crucial for us to focus on what we can control.

談到我們的業績，正如歐內斯特所提到的，我們在多元化投資組合的所有領域再次實現了強勁的營運業績，包括最高品質的辦公室、零售、多戶型和混合用途物業。在經濟和商業不可預測的時期，我們必須專注於我們可以控制的事情。

This means adapting to and meeting evolving market demands in a volatile economy, particularly in commercial real estate. We have a proven track record of overcoming challenges with resilience, and we are confident that our high-quality operating platform and real estate portfolio will remain steadfast despite the volatile financial markets. Moving forward, we will continue to base our strategy and decision-making on actions we believe will drive long-term financial outperformance.

這意味著在動盪的經濟中適應並滿足不斷變化的市場需求，特別是在商業房地產領域。我們擁有以韌性克服挑戰的良好記錄，我們相信，儘管金融市場動盪，我們的高品質營運平台和房地產投資組合仍將保持穩定。展望未來，我們將繼續將我們的策略和決策建立在我們相信將推動長期財務表現的行動之上。

On the office utilization front, our estimates and those of our tenants indicate that office usage has remained relatively stable from Q1 to Q2. Specifically, San Diego and San Francisco are experiencing utilization rates between 70% and 80%, with San Francisco largely driven by our two anchor tenants at Landmark, while Bellevue and Portland are at about 60% to 75%.

在辦公室利用率方面，我們和租戶的估計表明，第一季至第二季辦公室使用率保持相對穩定。具體而言，聖地牙哥和舊金山的利用率在 70% 至 80% 之間，其中舊金山主要由 Landmark 的兩個主要租戶推動，而貝爾維尤和波特蘭的利用率約為 60% 至 75%。

We anticipate that a few more known return-to-office mandates from existing tenants, once implemented, can increase these figures by year-end. Meanwhile, we understand that nationwide office utilization is just north of 50% of pre-pandemic levels. Of course, the quality and location of our office buildings and the robust amenities we offer are key differentiators in our higher utilization, not to mention leasing efforts compared to the competitors in our submarkets.

我們預計，現有租戶的一些更為人所知的重返辦公室規定一旦實施，到年底可能會增加這些數字。同時，我們了解到全國的辦公室利用率僅略高於疫情前水準的 50%。當然，我們辦公大樓的品質和位置以及我們提供的強大設施是我們提高利用率的關鍵區別因素，更不用說與子市場競爭對手相比的租賃力度了。

In the retail sector, which represents 27% of our portfolio NOI, we are currently about 95% leased. We have successfully renewed nearly all lease expirations this year and have begun executing on our 2025 renewals. As anticipated, our comparable retail leasing spreads have continued to trend positively each quarter over the past several years, with a 6% increase on a cash basis and a 34% increase on a straight-line basis for Q2 transactions.

零售業占我們投資組合 NOI 的 27%，目前約 95% 已出租。我們已成功續約今年幾乎所有到期的租約，並已開始執行 2025 年的續約。正如預期的那樣，我們的可比零售租賃利差在過去幾年中每個季度都繼續呈積極趨勢，按現金計算增長 6%，第二季度交易按直線計算增長 34%。

We are often asked about consumer spending at our retail properties. While we are not completely insulated from a potential slowdown, we believe that consumer spending is more resilient in the densely populated areas with favorable demographics surrounding our top-tier shopping centers.

我們常被問到消費者在我們零售物業的支出。雖然我們並未完全免受潛在經濟放緩的影響，但我們相信，在我們的頂級購物中心周圍人口稠密、人口結構有利的地區，消費者支出更具彈性。

Foot traffic has remained strong, supporting ongoing demand for the limited vacant space at our well-managed properties, especially given the very limited supply growth in our submarket. As a result, our retail portfolio achieved its highest average base rent per square foot in Q2 since our IPO, which ranks among the top two of the retail peers that we track.

客流量仍然強勁，支持了對我們管理良好的物業有限的空置空間的持續需求，特別是考慮到我們子市場的供應增長非常有限。因此，我們的零售投資組合在第二季度實現了自首次公開募股以來每平方英尺的最高平均基本租金，在我們追蹤的零售同行中名列前兩名。

Turning to our multifamily portfolio, specifically at our San Diego communities, we ended Q2 with an occupancy rate of 89% and a leased percentage of 95%. The dip in occupancy is mainly due to the seasonal move-out of students at our pacific ridge apartments.

談到我們的多戶型投資組合，特別是在聖地牙哥社區，我們第二季末的入住率為 89%，租賃率為 95%。入住率下降主要是因為學生季節性遷出我們的太平洋山脊公寓。

We note that leases for vacant units were rented at an average rate approximately 4% lower than prior rents, largely due to expiring prior tenancies that saw premiums of 20% plus over the base rate for month-to-month holdovers while renewed units experienced an average increase of 9%, resulting in a blended average increase of 4% with minimal concessions offered. While the year began with a slowdown in rents, the stronger spring and summer leasing season in Q2 has allowed us to increase rates, especially on renewals.

我們注意到，空置單位的平均租金比之前的租金低約4%，這主要是由於先前的租約到期，每月滯留的溢價比基本費率高出20%，而續租單位的租金則比之前的租金高出20%。雖然今年年初租金有所放緩，但第二季春季和夏季租賃季節的強勁使我們能夠提高費率，尤其是續租費率。

In Q2, at our Hassalo on Eighth multifamily community in Portland, we maintained flat rates on a blended basis between new move-ins and renewals, with our lease percentage holding steady at 96% and minimal concessions offered. While we had hoped for a slight increase in blended rates, maintaining flat rates still represents an improvement over prior quarters in Portland. Q3 has begun positively at Hassalo, and we are optimistic about sustaining this momentum.

第二季度，在波特蘭的 Hassalo on Eventh 多戶社區，我們在新入住和續租之間保持統一費率，租賃率穩定在 96%，並提供最低限度的折扣。雖然我們原本希望混合費率略有增加，但維持統一費率仍然比波特蘭前幾季有所改善。Hassalo 第三季已開始積極發展，我們對維持這一勢頭持樂觀態度。

Meanwhile, it's worth noting that our multifamily portfolio achieved its highest-ever average base rent in Q2 since our IPO, as we saw our same-store NOI increase almost 10% year-over-year for Q2 with very strong collections in Q2, and net effective rents for our entire multifamily portfolio are now 3% higher year over year compared to Q2 2023.

同時，值得注意的是，我們的多戶型投資組合在第二季度實現了自IPO 以來最高的平均基本租金，因為我們看到第二季度的同店NOI 同比增長近10%，且第二季度的收藏量非常強勁，與 2023 年第二季相比，我們整個多戶住宅投資組合的淨有效租金目前年增 3%。

Finally, we released our 2023 sustainability report in Q2, showcasing our operations and highlighting our initiatives and vision on various topics including environmental sustainability, social responsibility, corporate governance, and human capital. You can find it on our website, and we hope you find it informative.

最後，我們在第二季發布了 2023 年永續發展報告，展示了我們的營運情況，並強調了我們在環境永續發展、社會責任、公司治理和人力資本等各個主題上的舉措和願景。您可以在我們的網站上找到它，我們希望它能為您提供有用的信息。

With that, I'll turn the call over to Bob to discuss financial results and updated guidance in more detail.

這樣，我將把電話轉給鮑勃，更詳細地討論財務業績和更新的指導。

Thanks, Adam, and good morning, everyone. First of all, I want to congratulate Adam on his promotion to CEO well deserved, and there's been a pleasure working with him over the years. I look forward to many more years working with Adam Harkness and this great group of professionals that American Assets Trust, which is a tight-knit family focused on creating wealth for all of our shareholders and having fun while we do it.

謝謝亞當，大家早安。首先，我要祝賀 Adam 當之無愧地晉升為首席執行官，多年來與他一起工作非常愉快。我期待與 Adam Harkness 以及美國資產信託公司這群優秀的專業人士一起工作很多年，這是一個緊密團結的大家庭，致力於為我們所有股東創造財富，並在我們這樣做的同時享受樂趣。

Last night, we reported second quarter '24 FFO of $0.6 per share. Second Quarter 2020 for net income attributable to common stockholders was $0.2 per share. Second Quarter 2024 FFO decreased by approximately $0.11 to $0.6 per FFO share compared to the first quarter of 2024, primarily due to three things.

昨晚，我們報告 24 年第二季 FFO 為每股 0.6 美元。2020 年第二季歸屬於普通股股東的淨利為每股 0.2 美元。與 2024 年第一季相比，2024 年第二季 FFO 每股 FFO 減少約 0.11 美元至 0.6 美元，主要歸因於三件事。

First, as you may recall, we previously received a one-time $10 million litigation settlement in Q1 '24, which was approximately $0.13 of FFO per share, reducing the FFO by approximately $0.13 per FFO share in the second quarter. Second, our multifamily properties contributed approximately one penny per FFO share of outperformance in Q2 '24 that was not previously included in our updated '24 guidance.

首先，您可能還記得，我們​​之前在 24 年第一季收到了一次性 1000 萬美元的訴訟和解協議，相當於每股 FFO 約 0.13 美元，使第二季度的 FFO 每股 FFO 減少約 0.13 美元。其次，我們的多戶型房產在 24 年第 2 季的優異表現中為每 FFO 份額貢獻了大約 1 便士，這之前並未包含在我們更新的 24 年指導中。

And third our retail properties contributed approximately 1p per FFO share of outperformance in Q2 '24 that was not previously included in our updated 2014 guidance. These three items taken together reduce the FFO from $0.71 per FFO share in Q1 '24 to $0.6 in Q2 '24.

第三，我們的零售物業在 2024 年第 2 季為每 FFO 份額的出色表現貢獻了約 1 便士，這之前並未包含在我們更新的 2014 年指導中。這三項合計將 FFO 從 24 年第一季的每股 FFO 0.71 美元減少到 24 年第二季的 0.6 美元。

Same-store cash NOI for all sectors combined was 2.1% growth year over year for the second quarter. Breaking it out by segment and each compared to Q2 2023 is as follows. Our same-store office portfolio's NOI was flat in Q2, primarily due to contractual rent abatements related to office lease renewals at our solana crossing in San Diego and corporate campus East III in Bellevue.

第二季所有產業的同店現金 NOI 合計年增 2.1%。按細分市場細分並與 2023 年第二季相比如下。我們的同店辦公室投資組合的 NOI 在第二季度持平，主要是由於與聖地亞哥 solana Crossing 和貝爾維尤 East III 企業園區的辦公室租賃續約相關的合約租金減免。

Our same-store retail portfolio's NOI was positive 3.2% in Q2, primarily due to higher base rents at our Solana Beach Towne Centre in San Diego, Del Monte Center in Monterey, and Waikele Center in Oahu, Hawaii.

第二季度，我們的同店零售投資組合的 NOI 為正 3.2%，這主要是由於我們位於聖地牙哥的 Solana Beach Towne Center、蒙特雷的 Del Monte Center 和夏威夷瓦胡島的 Waikele Center 的基本租金較高。

Our same-store multifamily portfolio's NOI was a positive 9.5% in Q2, primarily due to higher-than-expected revenue and lower-than-expected expenses at our San Diego multifamily properties, particularly Pacific Ridge.

第二季度，我們同店多戶住宅投資組合的 NOI 為正 9.5%，這主要是由於我們聖地牙哥多戶住宅（尤其是 Pacific Ridge）的收入高於預期，支出低於預期。

At our mixed-use portfolios NOI was a positive 2.2% in Q2, primarily due to higher revenue at the Embassy Suites Waikiki. Specifically in Q2 '24, paid occupancy was approximately 86% compared to 84% in Q2 '23. RevPAR was $317 compared to $312 in Q2 '23. ADR was [$367 compared to $370] in Q2 '23. NOI was approximately $3.4 million compared to $3.3 million in Q2 '23.

在我們的混合用途投資組合中，第二季的 NOI 為正 2.2%，這主要是由於威基基大使館套房飯店的收入增加。特別是在 2024 年第二季度，付費入住率約為 86%，而 23 年第二季為 84%。RevPAR 為 317 美元，而 23 年第二季為 312 美元。23 年第 2 季的 ADR 為 [367 美元，對比 370 美元]。NOI 約為 340 萬美元，而 23 年第二季為 330 萬美元。

Liquidity, at the end of the second quarter, we had liquidity of approximately $515 million, comprised of approximately $115 million in cash and cash equivalents and $400 million of availability on our revolving line of credit. Subsequent to quarter end, we drew down on our line of credit to pay off the $100 million Series F notes that matured on July 19.

流動性，截至第二季末，我們的流動性約為 5.15 億美元，其中包括約 1.15 億美元的現金和現金等價物以及 4 億美元的循環信貸額度。季度末後，我們動用了信貸額度來償還 7 月 19 日到期的 1 億美元 F 系列票據。

As of the end of the second quarter, our leverage, which we measure in terms of net debt to EBITDA, was 6.4 times on a quarter annualized basis and 6.3 times on a trailing 12-month basis. Our objective is to achieve and maintain a net debt to EBITDA of 5.5 times or below. Our interest coverage and fixed charge coverage ratios were 3.6 times for the quarter on both an annualized basis and trailing 12-month basis.

截至第二季末，我們的槓桿率（以淨債務與 EBITDA 比率衡量）按季度年化計算為 6.4 倍，按過去 ​​12 個月計算為 6.3 倍。我們的目標是實現並維持 EBITDA 的淨債務不超過 5.5 倍。本季我們的利息覆蓋率和固定費用覆蓋率按年化計算和過去 12 個月計算均為 3.6 倍。

Please note while we have access to capital from many sources, we are closely monitoring the public debt markets to manage our upcoming debt maturities. We anticipate taking action on this before the end of the year.

請注意，雖然我們可以從許多來源獲得資金，但我們正在密切關注公共債務市場，以管理即將到期的債務。我們預計在今年年底前對此採取行動。

Let's talk about our 2024 guidance. We are increasing our 2024 FFO per share guidance range to $2.48 to $2.54 per FFO share with a midpoint of $2.51 per FFO share, a 9.6% increase from our previously updated guidance that had a range of $2.24 to $2.34 with a midpoint of $2.29. Let's walk through the items that make up most of this increase in our '24 FFO guidance.

讓我們來談談我們 2024 年的指引。我們將2024 年FFO 每股指引範圍提高至每股FFO 2.48 美元至2.54 美元，中點為每股FFO 2.51 美元，比我們先前更新的指引範圍（範圍為2.24 至2.34 美元，中點為2.29 美元）增加了9.6%。讓我們來看看 '24 FFO 指南中大部分增加的項目。

First, our retail properties have contributed an additional approximately $0.02 per FFO share this year from lower bad debt and operating expenses, and higher percentage rents that were not previously included in our updated '24 guidance. Second, our office properties have contributed an additional approximately $0.02 per FFO share this year from lower bad debt and operating expenses that were not previously included in our '24 guidance.

首先，我們的零售物業今年為每股 FFO 股票額外貢獻了約 0.02 美元，原因是壞帳和營運費用降低，以及我們先前更新的 24 年指引中未包含的較高百分比租金。其次，我們的辦公物業今年為每股 FFO 股票額外貢獻了約 0.02 美元，原因是壞帳和營運費用降低，而這些費用之前並未包含在我們的 24 年指引中。

And third, lower G&A and higher interest income has contributed an additional approximately $0.02 per FFO share this year. Fourth, our multifamily properties have contributed an additional $0.01 per FFO share this year that was not previously included in our updated '24 guidance.

第三，較低的管理費用和較高的利息收入今年為每股 FFO 份額額外貢獻了約 0.02 美元。第四，我們的多戶型房產今年為每股 FFO 股票額外貢獻了 0.01 美元，這在我們更新的 24 年指導中並未包含在內。

And fifth, we have received a lease termination fee from a tenant at our Torrey Reserve property in San Diego that will be recognized and contribute approximately an additional $0.15 per FFO share in Q3 2024. The tenant has also paid their existing rent through their new termination date of September 30 '24.

第五，我們已從聖地牙哥 Torrey Reserve 物業的租戶收到租賃終止費，該費用將得到確認，並於 2024 年第三季為每股 FFO 股份額外貢獻約 0.15 美元。租戶也已在新的終止日期（即 2024 年 9 月 30 日）之前支付了現有租金。

And the termination fee will cover approximately four of the five remaining years of base rent on the lease for turnkey space that we are optimistic that we can re-let within the next few years, if not earlier.

終止費用將涵蓋交鑰匙空間租賃剩餘五年基本租金中的大約四年，我們樂觀地認為我們可以在未來幾年內（如果不是更早的話）重新出租。

These adjustments, when added together, will be approximately $0.22 per FFO share and represent a net increase in the 2024 midpoint over our previously updated guidance. While we believe the '24 guidance is our best estimate as of this date of this earnings call, we do believe that it is also possible that we could perform towards the upper end of this range. In order to do that, first, the majority of the office or retail tenants that we reserve for must continue to pay their rents through the year-end.

這些調整加在一起後，每股 FFO 股票約為 0.22 美元，與我們先前更新的指導相比，2024 年中點淨增加。雖然我們認為 24 年指引是我們截至本次財報電話會議當天的最佳估計，但我們確實相信我們的表現也有可能達到該範圍的上限。為了做到這一點，首先，我們保留的大多數辦公室或零售租戶必須在年底前繼續支付租金。

As of the end of Q2, we have approximately $0.03 of FFO per share reserves remaining, $0.01 for office and $0.02 for retail. Second, we need to outperform our multifamily guidance by continuing to see increasing rents and occupancy and or less expenses. Third, tourism and travel to Waikiki needs to see a more meaningful return from our Japanese guests, which we are cautiously optimistic about, if not later this year than in the ensuing years to come. It's just a matter of timing.

截至第二季末，我們剩餘的 FFO 儲備金約為每股 0.03 美元，辦公室儲備金為 0.01 美元，零售儲備金為 0.02 美元。其次，我們需要透過繼續看到租金和入住率的增加或費用的減少來超越我們的多戶型指導。第三，威基基的旅遊業需要看到日本客人更有意義的回報，我們對此持謹慎樂觀態度，即使不是今年晚些時候，也可能是未來幾年。這只是時間問題。

As always, our guidance, our NOI bridge and these prepared remarks exclude any impact from future acquisitions, dispositions, equity issuances future debt refinancings or repayments other than what we've already discussed. We will continue our best to be as transparent as possible and share with you our analysis and interpretations of our quarterly numbers.

像往常一樣，我們的指導、我們的 NOI 橋樑和這些準備好的評論排除了除我們已經討論過的內容之外的未來收購、處置、股票發行、未來債務再融資或償還的任何影響。我們將繼續盡可能保持透明，並與您分享我們對季度數據的分析和解釋。

I also want to briefly note that any non-GAAP financial measures that we've discussed, like NOI, are reconciled to our GAAP financial results in our earnings release and supplemental information.

我還想簡要指出，我們討論過的任何非 GAAP 財務指標（例如 NOI）均與我們的收益發布和補充資訊中的 GAAP 財務業績進行了調整。

I'll now turn the call over to Steve Center, Senior Vice President of Office Properties, for a brief update on our office segment. Steve?

現在，我將把電話轉給辦公室房地產高級副總裁史蒂夫·中心 (Steve Center)，以了解我們辦公部門的簡要最新情況。史蒂夫？

Thanks, Bob.

謝謝，鮑伯。

At the end of the second quarter, our office portfolio was 86.6% leased, an increase of 20 basis points over the prior quarter. While we continue to experience some rightsizing of existing tenants and a few small office closings, they were more than offset by Q2 leasing activity as follows.

截至第二季末，我們的辦公室組合出租率為 86.6%，較上季增加 20 個基點。雖然我們繼續經歷對現有租戶的一些規模調整和一些小型辦公室的關閉，但它們被第二季的租賃活動所抵消，如下所示。

In the second quarter, we executed 18 leases totaling approximately 96,000 rentable square feet, comprised of two comparable new leases for approximately 21,000 rentable square feet, with rent increases of 4% on a cash basis and 26% on a straight line basis, including a 20,000 rentable square foot office tenant at First & Main and Portland.

第二季度，我們執行了18 項租賃，總面積約為96,000 平方英尺，其中包括兩份可比較的新租賃，面積約為21,000 平方英尺，租金按現金增長4%，按直線計算增長26%，其中位於 First & Main 和波特蘭的 20,000 平方英尺可出租辦公室租戶。

10 comparable renewal leases for approximately 32,000 rentable square feet, with rent increases of 6% on a cash basis and 10% on a straight line basis, including an 11,000 rental square foot office lease at the Coastal Collection, Torrey Reserve in San Diego and six non-comparable leases totaling approximately 43,000 rentable square feet.

10 個可比續約租約，面積約32,000 平方英尺，租金以現金成長6%，以直線計算成長10%，其中包括位於聖地牙哥托里保護區的Coastal Collection 的11,000 平方英尺的辦公室租賃，以及6 個可出租的辦公室。

Including two leases totaling 23,000 rentable square feet at City Center Bellevue, three leases totaling 16,000 rentable square feet at the Coastal Collection, Torrey Reserve in San Diego and a 5,000 rentable square foot lease at first in mainland Portland.

包括位於貝爾維尤市中心的兩份總計23,000 平方英尺的可出租租賃合約、位於聖地亞哥托里保護區的Coastal Collection 的三份總計16,000 平方英尺的可出租租賃合約以及首先在波特蘭大陸的5,000平方英尺的可出租租賃合約。

And the leasing momentum has continued into Q3 as follows. We've executed seven leases today totaling approximately 57,000 rentable square feet. We have nine deals in lease documentation totaling approximately 79,000 rentable square feet, approximately 62,000 rentable square feet of which is new leasing.

租賃動能延續至第三季度，具體如下。今天我們已經簽署了七份租約，總計約 57,000 平方英尺的可出租面積。我們有九項租賃文件交易，總計約 79,000 平方英尺的可出租面積，其中約 62,000 平方英尺的可出租面積是新租賃。

Including deals and lease documentation, approximately 55% of the rentable square feet is new leasing, which is the first time since 2019 that our new leasing has outpaced renewables on a rentable square foot basis.

包括交易和租賃文件在內，約 55% 的可出租平方英尺為新租賃，這是自 2019 年以來我們的新租賃首次在可出租平方英尺的基礎上超過可再生能源。

Our lease expiration exposure is modest through 2025. We're down to approximately 4% rolling in 2024 given deals signed year to date, with the average deal size of the remainder of approximately 8,000 rentable square feet.

到 2025 年，我們的租賃到期風險不大。鑑於今年迄今簽署的交易，我們將在 2024 年將滾動率降至約 4%，其餘可出租面積的平均交易規模約為 8,000 平方英尺。

This includes the early termination of the tenant that Bob mentioned at Torrey Plaza for approximately 46,000 rentable square feet or 1% of the portfolio that will hit on October 1. We have approximately 8% of the portfolio rolling in 2025 with the average deal size of approximately 6,800 rentable square feet.

這包括鮑伯提到的提前終止托里廣場約 46,000 平方英尺可出租面積的租戶，或 10 月 1 日將達到的投資組合的 1%。我們約有 8% 的投資組合將於 2025 年滾動，平均交易規模約為 6,800 平方英尺可出租。

Concluding with some insights on our new development, La Jolla Commons III in the UTC submarket of San Diego. We are currently in lease documentation for the third floor. We are one of two alternatives for a lease on the 10th floor. We have been shortlisted by a law firm for two floors. We have several tenants that have toured that are expected to engage with RFPs for up to a total of four floors and we are in discussions with one prospective tenant for most, if not all of the remaining vacancy.

最後將我們位於聖地牙哥 UTC 子市場的新開發案 La Jolla Commons III 的一些見解進行總結。我們目前正在準備三樓的租賃文件。我們是租用 10 樓的兩個選擇之一。我們已被一家律師事務所入圍兩層樓。我們有幾位已經參觀過的租戶預計將參與最多四層樓的 RFP，我們正在與一位潛在租戶討論大部分（如果不是全部）剩餘空置的情況。

Prospective tenants industries include software, legal, advisory, tax and insurance, construction, banking, energy, and management consulting and technology. They are seeking the best environment and experience with which to attract and keep the best talent and engage their customers.

潛在租戶產業包括軟體、法律、諮詢、稅務和保險、建築、銀行、能源以及管理諮詢和技術。他們正在尋求最佳的環境和體驗來吸引和留住最優秀的人才並吸引客戶。

Note that the UTC submarket of San Diego remains strong. Net of Tower III's vacancy, the Class A direct vacancy is just 4.5%. The only A-plus competitor has just three direct vacancies. Two that are about 4,000 rentable square feet and one that is 11,000 rentable square feet. We are excited about our prospects for success at Tower III and throughout our entire office portfolio.

請注意，聖地牙哥的 UTC 子市場依然強勁。扣除三號塔的空置率，A級直接空置率僅4.5%。唯一的 A+ 競爭對手只有三個直接空缺。兩間可出租面積約 4,000 平方英尺，另一間可出租面積為 11,000 平方英尺。我們對三號塔以及整個辦公大樓組合的成功前景感到興奮。

I'll now turn the call back over to the operator for Q&A.

我現在將把電話轉回給接線員進行問答。

Good job, Steve, Adam, and Bob.

幹得好，史蒂夫、亞當和鮑勃。

(Operator Instructions) Haendel St Juste, Mizuho.

（操作員指示）Haendel St Juste，Mizuho。

Hey, good morning and my congratulations to Adam and the team. I had a question, I guess for you, Adam. First on, I guess, maybe a two-parter. I guess, first more broadly, any G&A impact we should expect from the announcement in this year's guidance?

嘿，早上好，我祝賀亞當和團隊。我有一個問題，我想是問你的，亞當。首先，我想，也許是兩個人。我想，首先更廣泛地說，我們應該從今年指南中的公告中期待任何一般管理費用的影響？

Second, I'm just I'm curious, I know it's early, but if there's any short medium-term goals or strategic priorities that you might have in mind as you transition to the CEO role?

其次，我只是很好奇，我知道現在還為時過早，但在您過渡到執行長職位時，您是否可能想到任何短期中期目標或策略優先事項？

I don't think thanks, first and foremost, Haendel. I appreciate it. Don't anticipate any G&A impact this year. It's all going to be effective as of January next year. So you can rely on Bob's modeling going forward through this year.

我不認為首先要感謝韓德爾。我很感激。預計今年不會對一般管理費用產生任何影響。這一切將從明年一月起生效。因此，今年您可以信賴鮑伯的建模。

And in terms of change of what we're looking at, I mean, I think in a lot of respects, it's the same team, the same group of folks, we have the same strategy and not a lot will change on that front. But we'll continue to brainstorm and look for ways to create value. Same thing you've heard from us for the past 10 years.

就我們所看到的變化而言，我的意思是，我認為在很多方面，這是同一個團隊，同一群人，我們有相同的策略，在這方面不會有太多改變。但我們將繼續集思廣益，尋找創造價值的方法。過去 10 年來您從我們這裡聽到的也是同樣的事情。

Got it. Got it. Okay. And then maybe one on the lease termination fee in the quarter. I'm curious what you can tell us perhaps about the tenant and maybe why they terminated and sounds like you're optimistic on backfilling here in the next couple of years, I think Bob mentioned and then any read through here for for office. Are you hearing or expecting any more or having any more similar conversation?

知道了。知道了。好的。然後可能是本季的租賃終止費用。我很好奇你能告訴我們關於租戶的信息，也許還有他們終止合約的原因，聽起來你對未來幾年回填這裡持樂觀態度，我想鮑勃提到過，然後在這裡閱讀有關辦公室的任何內容。您是否聽到或期待更多或有更多類似的對話？

Well, on this situation specifically, this tenant was actually one we had in our reserve list that we had mentioned with guidance earlier this year. And though, and it was a life science tenant whose FDA approvals were not going in the right direction and they had a fair amount of cash on the balance sheet. So with their cash burn and their situation going forward, we engaged with them to come up with a mutually acceptable deal.

嗯，具體來說，在這種情況下，這個租戶實際上是我們今年早些時候在指導中提到的保留名單中的租戶。儘管如此，這是一個生命科學租戶，其 FDA 的批准並沒有朝著正確的方向發展，而且他們的資產負債表上有相當數量的現金。因此，鑑於他們的現金消耗和未來的情況，我們與他們接觸，以達成雙方都能接受的協議。

And so we were pleased with the outcome. I think they were as well. They're also a public company. But as Bob mentioned in his script, this is space at our old headquarters that is they did a great build out its turnkey space Steve can chime in on the leasing prospects for that space in general. But net-net, that was a deal where we could have seen this tenant run out of money within 12 months and not seen the fruits of the lease. And so it turned out to be a great situation, we think for both sides.

所以我們對結果感到滿意。我想他們也是如此。他們也是一家上市公司。但正如鮑勃在他的劇本中提到的那樣，這是我們舊總部的空間，他們做了很好的交鑰匙空間建設，史蒂夫可以插話一下該空間的總體租賃前景。但是，在這筆交易中，我們可能會看到該租戶在 12 個月內耗盡資金，卻看不到租約的成果。我們認為，這對雙方來說都是一個很好的情況。

Yes, the lease rates in place and there are about $12 annually below market. So, we've got a below market situation. We've gotten really well built out space, and it's 45,000 contiguous square feet on one floor, which is unique in the marketplace. So, we're encouraged by our pricing.

是的，租賃費已到位，每年比市價低約 12 美元。所以，我們的情況低於市場水準。我們已經建造了非常好的空間，一層面積為 45,000 平方英尺，這在市場上是獨一無二的。因此，我們的定價令我們感到鼓舞。

Got it. Got it, Steve, why have you maybe some color? I think you mentioned that new leasing in your office segment outpaced renewals for the first time in years. So I guess I'm curious what the prospects for the near term look like the level of tours and interest that you're seeing?

知道了。明白了，史蒂夫，你為什麼要帶點顏色呢？我想您提到過，您的辦公室部門的新租賃量多年來首次超過了續租量。所以我想我很好奇近期的前景如何，您所看到的旅遊水平和興趣如何？

And then I guess I assume with more new leasing going on then renewals that should result in an uptick in leasing CapEx. So any color on that would be appreciated Thanks.

然後我想我假設隨著更多新的租賃的進行，然後續約，這應該會導致租賃資本支出的上升。所以任何顏色都將不勝感激，謝謝。

It's interesting. Our CapEx hitting on that last point is actually up at the historic average over the last seven years. So it hasn't ticked up, although costs are up. So it just speaks to we're very judicious about what we build out and we're conscientious about what we get back. So we've had numerous instances where we had spaces roll that we built out in the last seven years that are not expensive to re-tenant and many renewals are as if so you'll see that our costs on a weighted average basis are pretty muted.

這很有趣。我們達到最後一點的資本支出實際上達到了過去七年的歷史平均值。因此，儘管成本上升了，但它並沒有上升。所以這只是說明我們對我們所建造的東西非常明智，並且我們對我們得到的回報非常認真。因此，我們有過很多例子，我們在過去七年裡建造了空間卷，重新租用並不昂貴，而且許多續租就好像這樣，你會發現我們的加權平均成本相當不錯靜音。

Probably what was your first question? In terms of activity, we activities up I mean Q3 or Q2 is 96,000 feet. We're on pace to do much higher than that in Q3. And if this trend continues, it will be our third best year from a leasing volume perspective. And even my 2018 was the Google year and Autodesk year, which were Monster was a monster year.

也許您的第一個問題是什麼？就活動而言，我們活動向上，我的意思是 Q3 或 Q2 是 96,000 英尺。我們的進展將比第三季高得多。如果這種趨勢持續下去，從租賃量的角度來看，這將是我們第三好的一年。甚至我的 2018 年也是 Google 年和 Autodesk 年，也是 Monster 年。

So leasing activities. And furthermore, the average deal size from a dollar dollar per deal square foot perspective is at the highest ever in the last seven years. So we're bullish. Our investments in our properties are paying off. Our margins remain good.

所以租賃活動。此外，從每平方英尺交易美元的角度來看，平均交易規模達到了過去七年來的最高水準。所以我們看漲。我們對房產的投資正在獲得回報。我們的利潤率仍然不錯。

We are the property of choice and even with tenants that are rightsized and we still experience that they're staying with us. So they may downsize, but they renew their leases at higher rental rates. So we're excited about prospects.

我們是首選的房產，即使租戶的規模得到了調整，我們仍然覺得他們和我們住在一起。因此，他們可能會縮小規模，但會以更高的租金續租。所以我們對前景感到興奮。

The property of choice is a very important strategy. We maintain our properties well, and we've looked after our tenant, Steve has introduced a culture of they're not tenants their customers, which serves us well.

屬性的選擇是一個非常重要的策略。我們很好地維護我們的財產，我們照顧我們的租戶，史蒂夫引入了一種文化，即他們不是租戶而是客戶，這對我們很有幫助。

Thank you. I'll yield.

謝謝。我就屈服吧

Antara Nag-Chaudhuri, KeyBanc Capital Markets.

Antara Nag-Chaudhuri，KeyBanc 資本市場。

Hi, this is Antara on the line for Todd Thomas. First, just wanted to say congrats on the promotion, Adam, and good luck on retirement, Ernest. I just had a couple -- (multiple speakers)

大家好，我是 Antara，正在接聽 Todd Thomas 的電話。首先，我只想祝賀亞當升職，祝歐內斯特退休好運。我剛剛有幾個——（多位發言者）

Wait a minute, I ain't retiring. I've got a lot of reasons why this company is so important to me. I'm glad Adam has got the job and congratulations because I do not think of mix as retiring and God help me if I do.

等一下，我不會退休。我有很多理由為什麼這家公司對我這麼重要。我很高興亞當得到了這份工作，並祝賀他，因為我不認為混合是退休，如果我這樣做的話，上帝會幫助我。

You knew better, Antara.

你更清楚，安塔拉。

Alright, got it. But just regarding the balance sheet, I know you paid down the Series F notes using the line and you have a couple of maturities in 2025 at around $425 million. So do you have any updated thoughts given the move in the debt markets? And are you looking to permanently refinance some of that in advance?

好的，明白了。但就資產負債表而言，我知道您使用該額度償還了 F 系列票據，並且您在 2025 年有幾筆到期日，金額約為 4.25 億美元。那麼，鑑於債務市場的走勢，您有什麼最新的想法嗎？您是否希望提前永久地為其中的一些再融資？

Yes, Antara, this is Bob here. We as I mentioned in the script. We've paid off $100 million in a couple of the due July 19th. We have the ability to either write a check for we have cash on the balance sheet or drawn the line of credit, we decided to draw the line of credit. We keep the cash on the balance sheet, which is earning 5% plus return on that.

是的，安塔拉，這是鮑伯。正如我在劇本中提到的。我們已經在 7 月 19 日到期的幾次欠款中還清了 1 億美元。我們有能力寫一張支票，因為我們的資產負債表上有現金，也有能力提取信用額度，我們決定提取信用額度。我們將現金保留在資產負債表上，即賺取 5% 的利潤加上回報。

In terms of the remaining $425 million that's coming due in 2025, we're on we've been monitoring the market since probably early '24, just to see where we are and what's the right time to lock in a swap contract, possibly. We've noticed that the market continues to fall fall a little bit. I we've noticed it came down I think it was like 10 basis points this morning, the treasury. So we're we have a good team of part of our banking syndicate that we're working with, and we're just looking for the right entry point.

就 2025 年到期的剩餘 4.25 億美元而言，我們可能從 24 年初開始就一直在監控市場，只是為了看看我們處於什麼位置以及鎖定掉期合約的合適時間。我們注意到市場繼續小幅下跌。我注意到今天早上財政部的匯率下跌了 10 個基點。因此，我們擁有一支由我們正在合作的銀行集團組成的優秀團隊，我們只是在尋找正確的切入點。

But I don't if you look at our past experience, we've been very successful at the transactions that we've done. So we're engaged, we're hopeful and hopefully we put something to bed before the end of this year, hopefully sooner.

但如果你看看我們過去的經驗，我就不這麼認為了，我們所做的交易非常成功。所以我們已經訂婚了，我們充滿希望，希望我們能在今年年底前完成一些工作，希望能更快。

Okay, perfect. And are there any other known move outs in the office segment that we should be aware of as we're thinking about the end of 2024 and 2025?

好的，完美。在考慮 2024 年底和 2025 年時，我們應該注意的辦公大樓領域還有其他已知的搬遷嗎？

What's the question?

問題是什麼？

Known move-outs. So 2024, no, we're in good shape 2025, we know the clear result will be vacating four floors. There actually attended five floors. We've already leased one of those floors to an existing subtenant. And so we've got four floors to go. We're in negotiations with a portion of one, but one of those floors with an existing subtenant as well.

已知的遷出。所以到 2024 年，不，到 2025 年我們的狀況良好，我們知道明確的結果將是騰出四層樓。實際上參加了五層樓。我們已經將其中一層租給了現有的轉租人。所以我們還有四層樓要走。我們正在與其中的一部分進行談判，但其中一層也有現有的轉租人。

That's First & Main.

這是第一個也是主要的。

First & Main, yes. And main yes, and it's a best-in-class building. We're just completing it by the end of the year, amenities program there as well. And so we're well positioned to backfill that space. It's beautiful spaces, top of the stack building top scientists available. So we're we're optimistic there.

首先也是主要的，是的。主要的是，這是一座一流的建築。我們剛剛在今年年底完成，那裡還有便利設施項目。因此，我們已做好充分準備來填補這一空間。這裡有美麗的空間，頂尖的科學家可以利用。所以我們對此持樂觀態度。

Office has this aura about it, which is concerning, but there's offices. And then there's office first of all, Steve does a great job. Second of all, we've got properties that are very well located. Third of all, we maintain them in first-class shape. Second of all, we treat a third of all we treat are our tenants as well as customers and really look after them as best as best we can. Fourth of all, a lot of the competition is not blessed with the advantages. We have.

辦公室有一種光環，這令人擔憂，但辦公室還是有的。首先是辦公室，史蒂夫做得很好。其次，我們擁有位置優越的房產。第三，我們保持它們的一流狀態。其次，我們對待的三分之一是我們的租戶和客戶，並盡最大努力真正照顧他們。第四，很多競爭者並不具備優勢。我們有。

The liquidity. We have assures our tenants A that will maintain the quality of our properties and B that we'll do that tenant improvements and leasing commissions. So there's office and there's no office, we're not the office there. There's the black mark that the market seems to, but a lay on it. We're the best in class and we're proud of what we do, and we think that the team does very well off at and the property speak for themselves.

流動性。我們已向租戶 A 保證，我們將保持我們物業的質量，而 B 則保證，我們將進行租戶改進並收取租賃佣金。所以有辦公室，也沒有辦公室，我們不是那裡的辦公室。市場似乎有一個污點，但它是存在的。我們是同類中最好的，我們為我們所做的事情感到自豪，我們認為團隊做得非常好，酒店的表現不言而喻。

Okay. Got it. Makes sense. And if I could just sneak one more in on what is the progress on leasing at One Beach and Lahoya. I was wondering if you have any additional data you could provide on leasing.

好的。知道了。有道理。我能否再偷偷介紹 One Beach 和 Lahoya 的租賃進度。我想知道您是否可以提供有關租賃的任何其他數據。

You're asking about La Jolla Commons three?

您是在問拉荷亞下議院三號嗎？

And One Beach. (multiple speakers)

和一個海灘。（多個發言者）

And One Beach.

和一個海灘。

Yes.

是的。

One beach, I'll just be candid. San Francisco is a small tenant market right now. This building is either a single tenant or three tenants. So it's going to take some time for this average size requirement in San Francisco to get there. Our prospects at Tower III at La Jolla Commons in UTC are excellent.

一個海灘，我就坦白說。舊金山目前是一個很小的租戶市場。這棟大樓不是租戶，就是三個租戶。因此，舊金山要達到這個平均尺寸要求還需要一些時間。我們在 UTC 的 La Jolla Commons 三號塔樓的前景非常好。

And I think you covered that earlier.

我認為您之前已經介紹過這一點。

Yeah, we've got a lot of activity there.

是的，我們在那裡有很多活動。

To look at the transcript. I think you covered it very well.

要看成績單。我認為你覆蓋得很好。

Yes, yes, we're up. We're very busy at Tower three. And as I mentioned that the direct vacancy in that submarket for class-A space is just 4.5% so it's got to be the healthiest submarket I think, in the country. So we think our prospects are really good.

是的，是的，我們起來了。我們三號塔非常忙碌。正如我所提到的，這個甲級空間子市場的直接空置率僅為 4.5%，因此我認為它一定是全國最健康的子市場。所以我們認為我們的前景非常好。

And for one month each for all of us, not a problem of San Francisco's yet we have a great property in a great location that's completely repositioned, but the market is the market.

對我們所有人來說，每人一個月，這不是舊金山的問題，但我們在一個絕佳的位置擁有一處很棒的房產，而且完全重新定位，但市場就是市場。

Got it. Thank you.

知道了。謝謝。

Thank you for the question.

謝謝你的提問。

Ronald Kamdem, Morgan Stanley.

羅納德‧卡姆德姆，摩根士丹利。

Hey, first, congrats, Adam, and obviously congrats on us, too on your continued role. And then Keith, another retirement. So congrats, everyone really, really well deserved. And so just on just switching gears to office, just a little bit here. And I think you the opening comments seems like there's been sort of a lot of activity in the portfolio and so forth.

嘿，首先，恭喜亞當，當然也祝賀我們，也祝賀你繼續擔任這個角色。然後基斯又退休了。所以恭喜，每個人都非常非常當之無愧。所以只是切換到辦公室，這裡只是一點點。我認為你的開場評論似乎在作品集等方面有很多活動。

We're just hoping you could give a little bit color of sort of the broader trends in the market and do you think that your activity sort of just more of a reflection of the quality or are we actually starting to see some signs that the broader market is starting to see better penetration?

我們只是希望您能夠對市場上更廣泛的趨勢給出一點顏色，您是否認為您的活動更多地反映了質量，或者我們實際上開始看到一些跡象表明更廣泛的趨勢市場開始出現更好的滲透率？

It's interesting and are one of our strongest markets in San Diego. And yet when you read CBRE's account of the market, it's not strong, it's challenging. So I think in large part, it's a flight to quality.

它很有趣，是聖地牙哥最強大的市場之一。然而，當你閱讀世邦魏理仕對市場的描述時，你會發現它並不強大，而是充滿挑戰。所以我認為在很大程度上，這是對品質的追求。

And I've said it before, even in a negative net absorption market, which many of our submarkets are, I don't need positive net absorption on the market to succeed, I need people to pick our properties, and we've been fortunate to have that happen. So much of the new leasing is tenants that are many of them are downsizing, but when they downsize they're looking for the best environment to get their people back in the office.

我之前說過，即使在淨吸收量為負的市場（我們的許多子市場都是如此），我也不需要市場上的淨吸收量為正才能取得成功，我需要人們來挑選我們的房產，而且我們一直很幸運能發生這種事。新租賃的大部分租戶都在縮小規模，但當他們縮小規模時，他們正在尋找最好的環境讓員工重返辦公室。

So they want all of the amenities we've talked about. They want really nice properties. So that's how we're winning. So I would say, our activity is more indicative of a flight to quality than it is the strength of the market. I will say though that up in Bellevue in particular, that market's recovering.

所以他們想要我們談論過的所有便利設施。他們想要非常好的房產。這就是我們獲勝的方式。所以我想說，我們的活動更多地表明了對品質的追求，而不是市場的實力。我想說的是，尤其是在貝爾維尤，市場正在復甦。

Our City Center Bellevue property continues to really do well and then the suburbs are picking up. So I'm encouraged there. We've got 281,000ft in the I-90 corridor. We've got multiple tours and proposals going on there, which is a big chunk of our vacancy in our overall portfolio. And then our two properties up on the 520 corridor are active as well. So Bellevue is improving.

我們貝爾維尤市中心的房產繼續表現良好，然後郊區的情況也在好轉。所以我在那裡受到鼓勵。I-90 走廊的高度為 281,000 英尺。我們在那裡進行了多次巡迴演出和提案，這是我們整體投資組合中的很大一部分空缺。然後我們位於 520 走廊的兩處房產也處於活躍狀態。所以貝爾維尤正在進步。

I think, Steve you would paraphrase, it does equate to quality from the landlord's point of view from a building's point of view from the financial ability of the landlord to perform from the ability of the landlord to work with the leasing agents. So it's a multi-tier market and we're, I believe, in the top tier and that's real and significant last year, all of those categories.

我認為，史蒂夫，你會解釋一下，從房東的角度來看，從建築物的角度來看，從房東的財務能力來看，從房東與租賃代理合作的能力來看，這確實等同於品質.所以這是一個多層市場，我相信我們處於頂級市場，去年所有這些類別都是真實且重要的。

That is a really good point, Ernest. It's not just the real estate itself. It is our balance sheet hubs. Our balance sheet is our strength as well as our customer service. Also our flexibility, you'll see it actually our weighted average lease term is shorter this quarter than the previous quarters in part because we flex with our customers, some need shorter term solutions that we don't jam for or we work with them.

這是一個非常好的觀點，歐內斯特。這不僅僅是房地產本身。它是我們的資產負債表中心。我們的資產負債表是我們的優勢，也是我們的客戶服務。還有我們的彈性，您會發現實際上我們本季的加權平均租賃期限比前幾季短，部分原因是我們與客戶合作，有些人需要短期解決方案，但我們不急於尋求或與他們合作。

And so that goes a long way, too. You got a law firm that just expanded into a 4,000 foot spec suite. And the principle called me up and said, hey, here's the term I need. I know we're going to revisit our deal 2.5 years from now, but I need this short term expansion. I'll contribute free rent to pay for the tenant improvements and will you work with me? And the answer was yes. So it's all those things. So it's a good point, Ernest, great.

所以這也有很長的路要走。您的律師事務所剛擴建 4,000 英尺的規格套房。校長打電話給我說，嘿，這是我需要的術語。我知道我們將在 2.5 年後重新審視我們的交易，但我需要這種短期擴張。我將免費提供租金來支付租戶的改善費用，您願意與我合作嗎？答案是肯定的。所以這就是所有這些事情。所以這是一個很好的觀點，歐內斯特，太棒了。

That's great. And then --

那太棒了。進而--

It does seem to have necessarily the same brush and everybody in that time in that part of the real estate market. It's really disappointing. We are not the average office landlord. We are, I believe on so very qualified and do an excellent job.

在當時房地產市場的那個部分，它似乎確實有相同的刷子和每個人。真是令人失望。我們不是一般的辦公室業主。我相信我們非常有資格並且做得非常出色。

Great. And then my second question was just sort of on the capital allocation. I mean, clearly the priorities are leasing capital and rounding out development and that you're working through. But when do you sort of acquisitions come back into the picture and how do you sort of balance that with trying to get leverage below 6 times?

偉大的。我的第二個問題是關於資本配置的。我的意思是，顯然，優先事項是租賃資本和完善開發，而您正在努力解決這些問題。但是，您什麼時候會重新考慮收購，以及您如何在努力將槓桿率降至 6 倍以下的情況下取得平衡？

So just how you guys think about capital allocation protecting that balance sheet will also potentially floating and play offense on the acquisition? Or is that even thinking right now?

那麼，你們如何看待保護資產負債表的資本配置也可能浮動並對收購發動攻擊？或者現在就這麼想？

First of all, we are not looking at acquisitions at the moment. Bob Barton who is, can be violent on occasion once that net debt to EBITDA fall into a range that maintains and perhaps even enhances our credit rating. The secret to that is La Jolla Commons three. And Steve went through that.

首先，我們目前不考慮收購。一旦 EBITDA 的淨債務落入維持甚至可能提高我們信用評級的範圍，鮑勃·巴頓（Bob Barton）有時可能會採取暴力行動。其秘訣就在於拉霍亞下議院三號。史蒂夫經歷了這一切。

So at the moment, we're sitting back watching and waiting for the success of La Jolla Commons three to come about and then we'll see what we can do. But I think that at the moment, office is kind of off our wish list because of the reputation it seems to have, even though we continue to perform in a top-tier fashion.

因此，目前，我們正在等待拉霍亞 Commons 3 的成功，然後看看我們能做些什麼。但我認為，目前，辦公室似乎不在我們的願望清單上，因為它似乎享有盛譽，儘管我們繼續以頂級方式表現。

Yes, let me let me just add to what Ernest said, Ron, is that yes, the capital allocation is really important, and we do want to protect the balance sheet. We think it's prudent, like Ernest matches is to let's let's finish the leasing, the oil comments three, with Lloyd Commons three, we have about $215 million invested over there with a great, great property in the market.

是的，讓我補充歐內斯特所說的，羅恩，是的，資本配置確實很重要，我們確實想保護資產負債表。我們認為這是謹慎的，就像歐內斯特匹配讓我們完成租賃一樣，石油評論三，勞埃德·康芒斯三，我們在那裡投資了大約2.15億美元，在市場上有一個非常非常好的房產。

And that's that we need to get a return on that. So let's leave that up. First, we are continuing to look at assets, but one thing that we've told many is that we're not looking to buy anymore office. We'd love what we got. We got great assets. Steve is overseeing all of that and we got great returns.

這就是我們需要獲得回報的原因。所以我們就先不談這個吧。首先，我們正在繼續關注資產，但我們已經告訴很多人的一件事是，我們不打算再購買辦公室。我們會喜歡我們所得到的。我們擁有巨大的資產。史蒂夫負責監督這一切，我們得到了豐厚的回報。

We'd like to pivot to multi-family and probably throw in a sprinkle of retail along the way. But if you look at the history of this company, we have dedicated ourselves to creating value for each of our investors. And I'm a big believer that we will continue to do that from here on out as well.

我們希望轉向多戶住宅，並可能在此過程中加入一些零售業。但如果你回顧這家公司的歷史，你會發現我們一直致力於為每位投資人創造價值。我堅信我們從現在開始也將繼續這樣做。

While we're not required, we are investing to tide daily in improving our properties. So Jerry, who handles construction how many projects do you have going now to a few?

雖然我們沒有被要求，但我們每天都會投資以改善我們的財產。那麼，負責建築的傑瑞（Jerry），您現在有多少個專案？

We have you have well over 100 projects going on.

我們有超過 100 個項目正在進行中。

Yes. So we're not sitting back on our, what we are waiting for something to happen. We're improving. They can do better, and that's an investment without the risk of acquisition.

是的。所以我們不會坐等事情發生。我們正在進步。他們可以做得更好，這是一項沒有被收購風險的投資。

Great. Super helpful. Congrats again, that's it for me.

偉大的。超有幫助。再次恭喜，這對我來說就是這樣。

Thanks Ron.

謝謝羅恩。

Dylan Burzinski, Green Street.

迪倫·布爾津斯基，格林街。

Hey, guys. All my questions have been asked, but just wanted to say congrats to Adam. Well deserved.

嘿，夥計們。我所有的問題都被問到了，但我只想向亞當表示祝賀。當之無愧。

Thanks, Dylan. Great questions.

謝謝，迪倫。很好的問題。

(multiple speakers) (inaudible) He's not only intelligent, he's got a great sense of humour.

（多位發言者）（聽不清楚）他不但聰明，而且很有幽默感。

Thank you, ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to Mr. Rady for any closing remarks.

謝謝女士們、先生們，我們的問答環節到此結束。我想將會議轉回拉迪先生做總結發言。

Thanks to all of you for your interest in our company. We continue to do our best on your behalf. We hope at some point the market will recognize the difference between us and the average real estate company are significant, and the results will prove it. So thank you all for your interest and your good questions.

感謝大家對我們公司的關注。我們將繼續為您竭盡全力。我們希望在某個時候市場會認識到我們與一般房地產公司之間的巨大差異，結果將證明這一點。感謝大家的興趣和提出的好問題。

Thank you. Ladies and gentlemen, this concludes our conference call. You may now disconnect your lines and have a wonderful rest of the day.

謝謝。女士們先生們，我們的電話會議到此結束。現在您可以斷開線路並享受一天的美好休息。