Armada Hoffler Properties Inc (AHH) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler First Quarter 2023 Earnings Call Conference Call.

女士們先生們，早上好，歡迎來到 Armada Hoffler 2023 年第一季度收益電話會議。

(Operator Instructions) This call is being recorded on Tuesday, May 9, 2023. I would now like to turn the conference over to Chelsea Forrest, Director of Corporate Communication and Investor Relations. Please, go ahead.

（操作員說明）此電話將於 2023 年 5 月 9 日星期二錄製。我現在想將會議轉交給企業傳播和投資者關係總監 Chelsea Forrest。請繼續。

Good morning, and thank you for joining Armada Hoffler's First Quarter 2023 Earnings Conference Call and Webcast.

早上好，感謝您參加 Armada Hoffler 的 2023 年第一季度收益電話會議和網絡直播。

On the call with me this morning, in addition to myself, is Lou Haddad, CEO; Matthew Barnes-Smith, CFO; and Shawn Tibbetts, COO.

今天早上和我通電話的，除了我自己，還有 CEO Lou Haddad；馬修·巴恩斯-史密斯，首席財務官；和首席運營官肖恩·蒂貝茨 (Shawn Tibbetts)。

The press release announcing our first quarter earnings, along with our supplemental package were distributed this morning. A replay of the call will be available shortly after the conclusion of the call through June 9, 2023. The numbers to access the replay are provided in the earnings press release.

宣布我們第一季度收益的新聞稿以及我們的補充包已於今天上午分發。電話會議結束後不久，將在 2023 年 6 月 9 日之前提供電話重播。收益新聞稿中提供了訪問重播的電話號碼。

For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, May 9, 2023, and will not be updated subsequent to the initial earnings call.

對於那些收聽此演示文稿重播的人，我們提醒您，此處的評論截至今天，即 2023 年 5 月 9 日，不會在首次財報電話會議後更新。

During this call, we may make forward-looking statements, including statements related to the future performance of our portfolio, our development pipeline, the impact of acquisitions and dispositions, our mezzanine program, our construction business, our liquidity position, our portfolio performance and financing activities as well as comments on our outlook.

在此次電話會議中，我們可能會做出前瞻性陳述，包括與我們投資組合的未來表現、我們的開發管道、收購和處置的影響、我們的夾層計劃、我們的建築業務、我們的流動性狀況、我們的投資組合表現和融資活動以及對我們前景的評論。

Listeners are cautioned that any forward-looking statements are based upon management's beliefs, assumptions and expectations, taking into account information that is currently available. These beliefs, assumptions and expectations may change as a result of possible events or factors, not all of which are known and many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations, and we advise listeners to review the forward-looking statement disclosure in our press release that we distributed this morning. And the risk factors disclosed in documents we have filed with or furnished to the SEC.

聽眾請注意，任何前瞻性陳述均基於管理層的信念、假設和預期，並考慮了當前可用的信息。這些信念、假設和期望可能會因可能發生的事件或因素而發生變化，這些事件或因素並非都是已知的，其中許多難以預測且通常超出我們的控制範圍。這些風險和不確定性可能導致實際結果與我們目前的預期存在重大差異，我們建議聽眾閱讀我們今天上午發布的新聞稿中披露的前瞻性聲明。以及我們向美國證券交易委員會提交或提供給美國證券交易委員會的文件中披露的風險因素。

We will also discuss certain non-GAAP financial measures, including, but not limited to, FFO and normalized FFO. Definitions of these non-GAAP measures as well as reconciliations to the most comparable GAAP measures are included in the quarterly supplemental package, which is available on our website at armadahoffler.com.

我們還將討論某些非 GAAP 財務指標，包括但不限於 FFO 和標準化 FFO。這些非 GAAP 措施的定義以及與最具可比性的 GAAP 措施的調節包含在季度補充包中，可在我們的網站 armadahoffler.com 上獲取。

I'll now turn the call over to Lou.

我現在將電話轉給 Lou。

Thanks, Chelsea. Good morning, everyone, and thank you for joining us today. This morning, we reported earnings for the first quarter of $0.30 per share, in line with our expectations and consistent with our full year guidance.

謝謝，切爾西。大家早上好，感謝您今天加入我們。今天上午，我們報告第一季度每股收益為 0.30 美元，符合我們的預期並符合我們的全年指引。

As you can see from our press release, the portfolio continues to deliver substantial growth in same-store sales and re-leasing spreads while maintaining occupancy of 97% portfolio-wide. As pointed out on numerous occasions, best-in-market properties yield impressive results in most any economic climate.

正如您從我們的新聞稿中看到的那樣，該投資組合繼續實現同店銷售額和轉租利差的大幅增長，同時保持整個投資組合 97% 的入住率。正如多次指出的那樣，市場上最好的房產在大多數經濟環境下都能產生令人印象深刻的結果。

Later in the call, Shawn and Matt will give you the details on the quarter as well as the current state of operations and financial metrics. I will use my time to describe 2 very important post-quarter events.

稍後在電話會議中，Shawn 和 Matt 將為您提供本季度的詳細信息以及當前的運營狀況和財務指標。我將用我的時間來描述 2 個非常重要的季度後事件。

Last week's announcement of our planned acquisition and recapitalization of the Interlock mixed-use asset in West Midtown Atlanta is a game-changing success on several levels. We anticipate funding the acquisition with $100 million of unsecured fixed rate financing, the issuance of a relatively small amount of OP units priced at $13 and the conversion of our existing mezzanine loan on the property into equity.

上週我們宣布計劃收購亞特蘭大西中城的 Interlock 混合用途資產並對其進行資本重組，這在多個層面上都取得了改變遊戲規則的成功。我們預計將通過 1 億美元的無擔保固定利率融資、發行相對少量的定價為 13 美元的 OP 單元以及將該物業現有的夾層貸款轉換為股權為此次收購提供資金。

At a 6.5% going-in cash cap rate, the property is immediately accretive to earnings. Although a significant majority of the NOI is achieved through retail and entertainment operations, Georgia Tech's Georgia Advanced Technology Ventures anchors the 200,000 square feet of state-of-the-art office space.

以 6.5% 的現金上限利率計算，該物業可立即增加收益。儘管大部分 NOI 是通過零售和娛樂業務實現的，但佐治亞理工學院的佐治亞先進技術風險投資公司擁有 200,000 平方英尺的最先進的辦公空間。

This 50,000 square foot lease serves as an incubator for technology developed at Georgia Tech. Several other tenants, both retail and office, have noted the proximity, stability and involvement of the university as an important advantage afforded by the building. We expect to quickly lease up remaining vacancy which will bring the stabilized GAAP cap rate on this trophy asset to well over 8%.

這個 50,000 平方英尺的租約用作佐治亞理工學院開發的技術的孵化器。其他幾位租戶，包括零售店和辦公室，都注意到大學的鄰近性、穩定性和參與性是該建築提供的重要優勢。我們預計將迅速出租剩餘空缺，這將使該獎杯資產的穩定 GAAP 上限率超過 8%。

With this single transaction, we will accomplish several objectives. Adding yet another trophy quality mixed-use asset to the portfolio, along with the other assets in the area, creating a concentration of investment in some of Atlanta's premier growth markets, thus complementing our existing dominant market position in Baltimore's Harbor Point and Virginia Beach's Town Center.

通過這一筆交易，我們將實現多個目標。將另一項優質混合用途資產添加到投資組合中，連同該地區的其他資產，使投資集中在亞特蘭大的一些主要增長市場，從而補充我們在巴爾的摩港點和弗吉尼亞海灘鎮的現有主導市場地位中心。

We also substantially increased property NOI while rightsizing our mezzanine investment program. One that has proven to be a reliable source of investment opportunities. The retirement of this loan removes the last impediment to our long-stated goal of reducing the size of that program to more moderate levels that will focus on partnering on infill multifamily projects.

我們還大幅增加了物業 NOI，同時調整了我們的夾層投資計劃。已被證明是可靠的投資機會來源。這筆貸款的終止消除了我們長期目標的最後一個障礙，該目標是將該計劃的規模減少到更適度的水平，重點是在填充式多戶項目上進行合作。

That said, as the Interlock is the fourth major acquisition we've achieved at significant discounts through our construction activities and mezzanine lending. We will continue to strategically deploy these mechanisms where our underwriting indicates the opportunity for eventual acquisition of top quality properties. Perhaps most importantly, the Interlock, combined with the Gainesville apartment complex and the mixed-use Southern Post gives us a platform for further growth in the dynamic Greater Atlanta market.

也就是說，由於 Interlock 是我們通過建築活動和夾層貸款以大幅折扣實現的第四次重大收購。我們將繼續戰略性地部署這些機制，在我們的承保表明最終收購優質資產的機會時。也許最重要的是，Interlock 與蓋恩斯維爾公寓大樓和混合用途的南郵報相結合，為我們提供了一個在充滿活力的大亞特蘭大市場進一步發展的平台。

The concentration of trophy quality mixed-use assets in Virginia Beach, the Baltimore Harbor and now Atlanta combined with a steadily growing presence in the Carolinas, gives us solid positions in some of the most desirable markets in the Southeast.

弗吉尼亞海灘、巴爾的摩港和現在的亞特蘭大集中了優質混合用途資產，再加上卡羅萊納州穩步增長的業務，使我們在東南部一些最理想的市場中佔據了穩固的地位。

Before I mention the second major post-quarter development, I'll give it the context of some near-term headwinds, which are actually long-term opportunities that make up the announcement all the more impressive.

在我提到第二個主要的季度後發展之前，我會給出一些近期逆風的背景，這些逆風實際上是使公告更加令人印象深刻的長期機會。

The Interlock acquisition, while significantly accretive, resulted in a material reduction in our previously projected guidance for mezzanine income for the year.

Interlock 的收購雖然顯著增加，但導致我們先前預計的今年夾層收入指引大幅減少。

Add to that, the lone hope for recapture of the Bed Bath & Beyond stores, which now appears to be likely, will result in less rental revenue in those 2 locations. Shawn will give you some detail on the various options we are considering for those sites. However, in the short term, this is another drag on 2023 NOI. All that said, despite these near-term challenges, due to the continued robust increases in portfolio income, the strength of third-party construction fee income, strong liquidity and interest expense consistency, we are maintaining our previous guidance as we anticipate momentum to continue throughout the year.

除此之外，重新奪回 Bed Bath & Beyond 商店的唯一希望（現在看來很有可能）將導致這兩個地點的租金收入減少。 Shawn 將為您詳細介紹我們正在為這些站點考慮的各種選項。不過，從短期來看，這又是對2023 NOI的拖累。總而言之，儘管存在這些近期挑戰，但由於投資組合收入持續強勁增長、第三方建設費收入強勁、流動性強和利息支出的一致性，我們維持先前的指引，因為我們預計勢頭將繼續全年。

Therefore, in keeping with our policy of dividend payouts in the 80% of AFFO range, the Board has acted to raise the quarterly dividend to [$0.195] a 2.6% increase. With this change, the dividend will now eclipse its pre-pandemic level on an annual basis. The primary differences between then and now, aside from a stock price nearing $20, are a much stronger balance sheet and a far greater percentage of income coming from trophy rental income properties. I'll now turn the call over to Shawn.

因此，為了與我們在 AFFO 範圍的 80% 範圍內支付股息的政策保持一致，董事會已採取行動將季度股息提高至 [0.195 美元]，增幅為 2.6%。通過這一變化，股息現在每年都將超過大流行前的水平。當時和現在的主要區別，除了股價接近 20 美元外，還包括更強大的資產負債表和更大比例的來自獎杯租金收入的收入。我現在將電話轉給肖恩。

Thank you, Lou. As Lou indicated, the company continues to perform well, consistent with our guidance and with momentum following our record-breaking 2022 results. Our teams remained focused on value creation while working against the backdrop of a tough economic cycle.

謝謝你，婁。正如 Lou 所指出的那樣，公司繼續表現良好，符合我們的指導意見，並且在我們創紀錄的 2022 年業績之後勢頭強勁。我們的團隊在艱難的經濟周期背景下繼續專注於價值創造。

To reiterate, we believe that the best-in-class performance throughout the portfolio, safe and reliable construction services, combined with seamless execution of high-quality development projects will continue to create sustained shareholder value for years to come. Please refer to the supplemental package to review our operating portfolio highlights. I would like to call out a few of the noteworthy operational metrics that are contributing to our continued growth and sustained high occupancy across the portfolio.

重申一下，我們相信整個投資組合中一流的表現、安全可靠的建築服務，以及高質量開發項目的無縫執行，將在未來幾年繼續創造持續的股東價值。請參閱補充包以查看我們的運營組合亮點。我想列舉一些值得注意的運營指標，這些指標有助於我們的持續增長和整個投資組合的持續高入住率。

2023 quarter 1 year-over-year same-store NOI for the portfolio was positive in all segments, was 4.3% on a GAAP basis, 5.3% on a cash basis, with retail coming in at 7.3% on a cash basis. 2023, quarter 1 year-over-year re-leasing spread on the commercial portfolio were positive 10.1% on a GAAP basis and 6.6% on a cash basis.

2023 年第 1 季度，投資組合的同店 NOI 在所有細分市場均為正，按 GAAP 計算為 4.3%，按現金計算為 5.3%，零售為 7.3%（按現金計算）。到 2023 年，第一季度商業組合的再租賃利差按 GAAP 計算為正 10.1%，按現金計算為 6.6%。

We've been producing double-digit GAAP re-leasing spreads in the retail space for 3 quarters in a row. Our asset management team continues to produce superior results as their agile approach enables us to keep our buildings full with high-quality tenants and residents. We previously discussed the post-COVID era commercial tenant watch list and the process continues to serve as a useful indicator for tenants who are or who may be potentially at risk due to various economic factors in the market. There are a couple of high-profile tenants currently in focus. As a result of recent press surrounding bankruptcy proceedings, the tenant that is top of mind is Bed Bath & Beyond.

我們已經連續 3 個季度在零售領域產生兩位數的 GAAP 轉租利差。我們的資產管理團隊繼續取得卓越的成果，因為他們的敏捷方法使我們能夠讓我們的建築物充滿高質量的租戶和居民。我們之前討論了後 COVID 時代的商業租戶觀察名單，該過程繼續作為有用的指標，用於判斷由於市場上的各種經濟因素而處於或可能處於風險中的租戶。目前有幾個備受矚目的租戶。由於最近有關破產程序的新聞報導，最受關注的租戶是 Bed Bath & Beyond。

As stated last quarter, we are in discussions with a popular high-credit tenant who would like to fill the Durham, North Carolina space as soon as possible. Since the announcement, we've also fielded 6 unsolicited calls from retail tenants who would like to take immediate possession of our 6-acre Virginia Beach location.

正如上個季度所述，我們正在與一位受歡迎的高信用租戶進行討論，他希望盡快填補北卡羅來納州達勒姆的空間。自公告發布以來，我們還接到了 6 通來自零售租戶的主動來電，他們希望立即擁有我們佔地 6 英畝的弗吉尼亞海灘店面。

As you may recall, we have long-awaited multifamily development plans for this site. However, given the level of interest, we will use this opportunity to determine which option results in the greatest long-term value creation.

您可能還記得，我們為該地塊制定了期待已久的多戶住宅開發計劃。然而，考慮到興趣水平，我們將利用這個機會來確定哪個選項會帶來最大的長期價值創造。

In terms of office performance, we remain well leased at 96.8% with a high-quality roster of tenants. The retail segment is also experiencing sustained elevated levels of lease-up at 97.1% across the portfolio.

在寫字樓表現方面，我們擁有優質租戶名單，出租率保持在 96.8% 的良好水平。整個投資組合的零售業務租賃率也持續上升，達到 97.1%。

I had previously cited the comment made by DBRS Morningstar and our recent BBB-rated credit report that referred to high occupancy rates across our portfolio and issues we are facing with accommodating tenant expansion, specifically relating to office space. To that end, I'm happy to report that we capitalized on one such opportunity during the first quarter.

我之前曾引用過 DBRS Morningstar 的評論和我們最近的 BBB 級信用報告，其中提到了我們投資組合的高入住率以及我們在適應租戶擴張方面面臨的問題，特別是與辦公空間有關的問題。為此，我很高興地報告，我們在第一季度利用了一個這樣的機會。

Our team developed a plan to relocate and consolidate a portion of our own employee base to create greater opportunities for revenue-generating space. We were able to execute a long-term lease with KPMG here in our headquarters building at Town Center, Virginia Beach. This new lease is yet another example of high credit tenants taking the flight to quality, demonstrating the strength and attractiveness of our mixed-use ecosystems. This brings the 800,000 square feet of Town Center office space to 99% leased.

我們的團隊制定了一項計劃，重新安置和鞏固我們自己的一部分員工基礎，以創造更多的創收空間機會。我們能夠與畢馬威會計師事務所在我們位於弗吉尼亞海灘市中心的總部大樓簽訂長期租約。這份新租約是高信用租戶追求品質的又一個例子，展示了我們混合用途生態系統的實力和吸引力。這使得 800,000 平方英尺的 Town Center 辦公空間的出租率達到 99%。

The theme for our multifamily portfolio is consistent growth. As we predicted, growth has settled in at the mid-single-digit range for the quarter, and we see this trend continuing in the months ahead, especially given our assets are in well located, walkable and mixed-use environments.

我們的多戶型投資組合的主題是持續增長。正如我們所預測的那樣，本季度的增長已穩定在中等個位數範圍內，我們認為這一趨勢將在未來幾個月持續下去，尤其是考慮到我們的資產位於地理位置優越、適合步行和混合使用的環境中。

Our portfolio continues to stand strong against macroeconomic headwinds. State-of-the-art properties, combined with superior locations, create trophy assets that are virtually the best in their respective submarkets. The complementary property types outperform, especially during times of economic uncertainty and increased pressures.

我們的投資組合在宏觀經濟逆風中繼續保持強勁。最先進的物業與優越的地理位置相結合，創造了在各自子市場中幾乎最好的獎杯資產。互補的房地產類型表現出色，尤其是在經濟不確定和壓力增加的時期。

Earlier in the call, Lou mentioned acquisition as a means for growth and the Interlock is demonstrative of that thesis. As you know, we also create high-value real estate through our internal development and construction processes. To that end, our construction and development teams are currently hard at work manufacturing high-quality assets located within mixed-use settings that will soon be added to our growing and robust portfolio.

在電話會議的早些時候，Lou 提到收購是增長的一種手段，而 Interlock 就是這一論點的證明。如您所知，我們還通過內部開發和建設流程創造高價值的房地產。為此，我們的建設和開發團隊目前正在努力製造位於混合用途環境中的高質量資產，這些資產將很快被添加到我們不斷增長和強大的產品組合中。

The team is also highly focused on delivery of the largest third-party backlog in our company's history further contributing to the earnings of the firm.

該團隊還高度專注於交付我們公司歷史上最大的第三方積壓訂單，進一步為公司盈利做出貢獻。

Our Southern Post mixed-use project in Roswell, Georgia continues to progress nicely and is scheduled for initial delivery early next year. The retail space has seen quite a bit of activity and is 56% leased with another 31% under LOI. The office has also experienced significant leasing activity as of late. We are currently negotiating with a high credit tenant relocating from the West Coast for a 37,000 square foot strategic corporate relocation. This tenant will anchor roughly 40% of the office space and we believe execution of this lease will aid an acceleration of the leasing activity within the asset. We are also excited about the lease-up opportunities in the apartment space especially given the barriers to entry in the high-end submarket.

我們在佐治亞州羅斯威爾的 Southern Post 混合用途項目進展順利，計劃於明年初首次交付。零售空間已經出現相當多的活動，56% 已出租，另有 31% 根據 LOI 出租。該辦公室最近也經歷了重大的租賃活動。我們目前正在與一家從西海岸搬遷的高信用租戶就 37,000 平方英尺的戰略性企業搬遷進行談判。該租戶將佔據大約 40% 的辦公空間，我們相信執行該租約將有助於加速資產內的租賃活動。我們也對公寓空間的租賃機會感到興奮，特別是考慮到進入高端子市場的障礙。

At our Harbor Point site, the T. Rowe Price Global headquarters project continues to progress. We look forward to updating you with more details as we get closer to delivery. Across the street, we are well underway with the 312-unit allied apartment building. Success at our 1405 Point and Dock Street multifamily assets continues to bolster our outlook as we develop this complementary high-quality asset in the best location within the submarket. We remain on target for initial occupancy in both buildings during the third quarter of 2024.

在我們的 Harbor Point 場地，T. Rowe Price 全球總部項目繼續推進。我們期待在臨近交付時為您提供更多詳細信息。在街對面，我們正在建設擁有 312 個單元的聯合公寓樓。我們在 1405 Point and Dock Street 多戶住宅資產上取得的成功繼續提振了我們的前景，因為我們在子市場內的最佳位置開發了這一互補的優質資產。我們的目標仍然是在 2024 年第三季度兩座大樓的首次入住。

Finally, we believe that amongst all of our assets, our people are the most valuable. Our talented teams continue to manufacture and manage the high-quality assets that are our value proposition. We appreciate all you do on behalf of the company and its shareholders.

最後，我們相信在我們所有的資產中，我們的員工是最有價值的。我們才華橫溢的團隊繼續製造和管理作為我們價值主張的優質資產。感謝您代表公司及其股東所做的一切。

I will now turn the call over to Matt.

我現在將把電話轉給馬特。

Good morning, and thank you, Shawn. Another set of strong results by our operating team demonstrating consistency in performance and the quality of our assets.

早上好，謝謝你，肖恩。我們的運營團隊又取得了一系列強勁的業績，證明了我們在業績和資產質量方面的一致性。

For the first quarter of 2023, we reported FFO of $0.23 per diluted share and normalized FFO of $0.30 per diluted share in line with both our guidance estimates and coverage analyst consensus. Therefore, we have maintained our guidance range accordingly at $1.23 to $1.27 per diluted share of normalized FFO, and the Board have responsibly increased our dividend to [$0.195] per quarter. This modest dividend increase of just under 3% maintains our AFFO coverage ratio in the 80% range and cannot only be attributed to our portfolio's performance, but also our strong balance sheet. As we continue to transition our balance sheet towards long-term fixed rate unsecured debt, we will maintain our liquidity and respectable financial metrics.

對於 2023 年第一季度，我們報告的 FFO 為每股攤薄後 0.23 美元，標準化 FFO 為每股攤薄後 0.30 美元，這符合我們的指導估計和覆蓋率分析師的共識。因此，我們將我們的指導範圍相應地維持在每稀釋後標準化 FFO 1.23 美元至 1.27 美元，並且董事會負責任地將我們的股息增加到每季度 [0.195 美元]。這種略低於 3% 的適度股息增長使我們的 AFFO 覆蓋率保持在 80% 的範圍內，這不僅歸功於我們投資組合的表現，還歸功於我們強大的資產負債表。隨著我們繼續將資產負債表轉向長期固定利率無擔保債務，我們將保持我們的流動性和可觀的財務指標。

For the first quarter of 2023, our stabilized portfolio debt to stabilize portfolio EBITDA is at 5.4x in line with our stated target. Our debt service coverage ratio and fixed charge coverage ratio reported 2.8x and 2.3x, respectively, once again demonstrating the team's ability to manage and execute this transition in adverse market conditions.

2023 年第一季度，我們用於穩定投資組合 EBITDA 的穩定投資組合債務為 5.4 倍，符合我們既定的目標。我們的償債覆蓋率和固定費用覆蓋率分別為 2.8 倍和 2.3 倍，再次證明了團隊在不利市場條件下管理和執行這一轉變的能力。

Our liquidity position continues to be strong at roughly $180 million more than able to cover the 2023 cash requirements for our development pipeline and any potential preferred equity deals. This, combined with our well-structured debt maturity ladder means that we continue to grow earnings without the need to enter the equity markets until we feel that we are receiving appropriate value. For reference, we have no debt maturities in 2023 and the small amount of debt maturing in 2024 and 2025 will be paid off at maturity adding these assets to our unencumbered borrowing base.

我們的流動性狀況繼續保持強勁，大約超過 1.8 億美元，足以滿足我們開發管道和任何潛在優先股交易的 2023 年現金需求。這一點，再加上我們結構良好的債務到期階梯，意味著我們無需進入股票市場就可以繼續增加收益，直到我們覺得自己獲得了適當的價值。作為參考，我們沒有 2023 年到期的債務，少量 2024 年和 2025 年到期的債務將在到期時償還，並將這些資產添加到我們的未支配借款基礎中。

You will have noticed from our supplemental financial package that we are currently overhedged. This is due to several timing factors and will self-correct over the coming year as these derivatives expire.

您會從我們的補充財務方案中註意到我們目前過度對沖。這是由於幾個時間因素造成的，並將在未來一年隨著這些衍生品到期而自我糾正。

As interest rates continue to fluctuate, we will constantly monitor the environment to ensure we either convert the variable rate debt to long-term fixed-rate debt in the private placement market or layer in new hedge positions when our current set of positions mature.

隨著利率繼續波動，我們將不斷監測環境，以確保我們要么在私募市場將可變利率債務轉換為長期固定利率債務，要么在我們當前的頭寸到期時建立新的對沖頭寸。

One of the key themes over the last 12 months is the rebalancing of our portfolio with the reduction of our mezzanine book, strategically selecting projects that we would look to.

過去 12 個月的關鍵主題之一是通過減少夾層賬簿來重新平衡我們的投資組合，戰略性地選擇我們希望關注的項目。

The announcements of acquiring the mixed-use in Interlock asset in West Midtown Atlanta replaces the mezzanine interest income with stable property NOI, increasing the value of these earnings. We will take this opportunity to continue our balance sheet transition and place a 2-year $75 million unsecured term loan paying off its current construction debt.

收購亞特蘭大西中城 Interlock 混合用途資產的公告用穩定的物業 NOI 取代了夾層利息收入，增加了這些收益的價值。我們將藉此機會繼續我們的資產負債表轉型，並提供 2 年期 7500 萬美元的無擔保定期貸款來償還其當前的建設債務。

This SOFR plus 140 basis point loan has been swapped at 4.7% for the entire term, including extensions, providing us with predictability in our cash flows. The unsecured term loan has a 1-year extension option, the capacity to be increased to $150 million and is a prime candidate for a debt private placement in the future when the economic conditions return to more favorable levels.

這筆 SOFR 加上 140 個基點的貸款在整個期限內以 4.7% 的利率進行了互換，包括延期，這為我們的現金流提供了可預測性。無抵押定期貸款有 1 年延期選擇權，能力可增加至 1.5 億美元，是未來經濟狀況恢復到更有利水平時債務私募的主要候選對象。

I will now pass back over to Lou for his closing comments.

我現在將轉回 Lou 的結束評論。

Thank you, Matt. Our shareholder-focused mindset anchors our actions as a result of the natural alignment created by management's significant ownership stake in the firm.

謝謝你，馬特。我們以股東為中心的心態錨定了我們的行動，這是由於管理層在公司的重要股權所產生的自然一致性。

Our team remains committed to the continued focus on consistent performance while meeting and exceeding expectations, especially in uncertain times like these.

我們的團隊將繼續致力於持續關註一致的績效，同時滿足並超越預期，尤其是在這樣的不確定時期。

I'll now turn the call back over to the operator for questions and answers.

我現在將把電話轉回給接線員進行提問和回答。

(Operator Instructions) First question comes from the line of Rob Stevenson with Janney.

（操作員說明）第一個問題來自 Rob Stevenson 和 Janney 的對話。

Looking at the revised guidance assumes roughly $900,000 less in interest income for the year. What does the mezz pipeline look today given that you're going to be losing your biggest source of income out of that portfolio when you close the Interlock transaction?

查看修訂後的指引假設當年的利息收入減少大約 900,000 美元。考慮到當您關閉 Interlock 交易時您將失去該投資組合中最大的收入來源，今天的夾層管道看起來如何？

Rob, I'm going to let Shawn answer that specifically. But as you know, we've long awaited this opportunity to rightsize that program, and it's going to level off in the $80 million range. We have a number of new opportunities we're looking at focused primarily on the Charlotte and Atlanta markets. So our expectation is that mid-income for 2024 is going to be roughly where it is today.

羅布，我要讓肖恩具體回答這個問題。但如您所知，我們一直在等待這個機會來調整該計劃的規模，並且它將穩定在 8000 萬美元的範圍內。我們有許多新機會，主要集中在夏洛特和亞特蘭大市場。因此，我們的預期是 2024 年的中等收入水平將與今天大致持平。

Yes. Thanks, Lou. Rob, I think the high-level answer to your question is we want to continue, as Lou said, to look for the opportunities where we can jump in and own. And obviously, that's more of an art at times than a science.

是的。謝謝，婁。 Rob，我認為對你的問題的高層回答是，正如 Lou 所說，我們希望繼續尋找我們可以參與並擁有的機會。顯然，這有時更像是一門藝術而不是一門科學。

As you know, in the supplemental, we kind of outlined the projects outstanding. You see the Interlock still there. With that, that kind of $55 million principal will come back in as well as the accrued. So about $90 million will come back in the door. We do have 2 deals out with our partners at Terwilliger Pappas that are mixed used to lose point in the Southeast, one in Charlotte and one in a suburb or a satellite of Atlanta.

如您所知，在補充文件中，我們概述了未完成的項目。你看到互鎖還在那裡。這樣一來，那筆 5500 萬美元的本金將和應計利息一起回來。因此，大約 9000 萬美元將回歸。我們確實與 Terwilliger Pappas 的合作夥伴達成了 2 筆交易，這些交易混合用於在東南部失去點，一個在夏洛特，一個在郊區或亞特蘭大的衛星。

So what we intend to do is look for those opportunities that are attractive for us to check the boxes for our portfolio and potentially put out for another one of those when it makes sense. But I think to Lou's point, we're going to remain pretty consistent, kind of steady hand on the wheel. And if something comes across the [transom], we're willing to pull the trigger.

因此，我們打算做的是尋找那些對我們有吸引力的機會來檢查我們投資組合的方框，並可能在有意義的時候推出另一個。但我認為，就 Lou 的觀點而言，我們將保持一致，穩如泰山。如果 [橫梁] 出現問題，我們願意扣動扳機。

How much on Solis City Park II and Gainesville II is left to put out? It looks like on the supplemental, you've put out the balance between those 2 is, call it, just under $34 million. Is there a substantial amount left or to get to $80 millionish or whatever you're really talking about doing somewhere in the neighborhood of $45 million of new loans.

Solis City Park II 和 Gainesville II 還剩下多少錢？看起來在補充上，你已經把這 2 個之間的餘額計算為不到 3400 萬美元。是否有大量剩餘或達到 8000 萬美元或任何你真正談論的在 4500 萬美元新貸款附近做的事情。

There's $30 million left. So I think, to your point, we won't get to the $80 million with just these 2. So we'll have to look for opportunities there. If in fact, we want to hit that cap.

還剩3000萬美元。所以我認為，就你的觀點而言，我們不會僅僅靠這兩個就達到 8000 萬美元。所以我們必須在那裡尋找機會。如果事實上，我們想達到那個上限。

But again, our kind of loose cap there is for guidance, not in terms of financial guidance, but guidance internally on how we're going to conduct business in the mezzanine platform. So I think to answer your question, you potentially see us take another one if it fits and if the timing works well for us.

但同樣，我們的那種寬鬆上限是為了指導，不是在財務指導方面，而是在內部指導我們如何在夾層平台上開展業務。所以我想回答你的問題，你可能會看到我們再拿一個，如果它合適並且時間適合我們。

Okay. So just to be clear, sort of $34 million -- so the 2 Solis transactions that are on Page 18 of the supplemental, those are more or less fully funded at this point. And then there's another, call it, $30 million coming from Charlotte in the Atlanta with Terwilliger Pappas. And then so to get to 80, you'd be looking at doing something in the neighborhood of another $15-ish million on top of that?

好的。所以要明確一點，大約是 3400 萬美元——所以補充文件第 18 頁上的 2 筆 Solis 交易，此時或多或少得到了充分的資助。然後還有另一個，叫它，來自亞特蘭大的夏洛特和 Terwilliger Pappas 的 3000 萬美元。然後為了達到 80，你會考慮在另外 15 萬美元附近做點什麼嗎？

I think close. We're going to put out a combination of $30 million more between these 2, Solis City Park and Solis Gainesville that you see. And subsequent to that, to get up to $80 million, we will have to agree to do another project with Terwilliger Pappas.

我認為接近。我們將在您看到的 Solis City Park 和 Solis Gainesville 這兩個項目之間再投資 3000 萬美元。之後，為了獲得高達 8000 萬美元，我們將不得不同意與 Terwilliger Pappas 進行另一個項目。

And again, that will -- timing will be a major factor there. Location, kind of our underwriting and appetite to own that asset potentially will also go into the mix. So I think, a lot has to do with underwriting, obviously, and a heck of a lot has to do with timing. But again, we'll have to put down another project on the sheet here to get to the $80 million to answer the question.

再一次，這將 - 時機將是那裡的一個主要因素。位置、我們的承銷類型和擁有該資產的意願也可能會受到影響。所以我認為，很明顯，很多都與承銷有關，而且很多都與時機有關。但同樣，我們必須在此處列出另一個項目以獲得 8000 萬美元來回答這個問題。

Okay. Perfect. And then Bed, Bath & Beyond at Town Center, is that an either/or, or is there a scenario where you do ground floor retail with somebody with the apartments above it?

好的。完美的。然後是 Town Center 的 Bed, Bath & Beyond，這是一個非此即彼的情況，還是有這樣一種情況，你在底層零售與上面有公寓的人一起做？

Yes. That's -- you just hit the third option. And so we're going to be looking at all 3 over the next month or so and try and pick a direction. Hopefully, it's going to be compatible with bringing some new-to-market retailers into the area, which is our mandate from the city when we pull the trigger on retail. But at the same time, as we said, we long waited for this opportunity to do some multifamily there as well.

是的。那就是——你只是點擊了第三個選項。因此，我們將在接下來的一個月左右的時間裡研究所有 3 個，並嘗試選擇一個方向。希望它能與將一些新進入市場的零售商引入該地區兼容，這是我們在啟動零售業時從該市獲得的授權。但與此同時，正如我們所說，我們一直在等待這個機會在那裡做一些多戶住宅。

All right. And I guess the question there sort of pegs, how are you guys thinking about demand for apartment units at Town Center? You already have roughly 760 units there. How much could you add there without sort of weakening pricing for your existing units with adding another whatever it's going to wind up being 150, 200, 300 units, whatever that you're thinking about. How do you think about that as going from maybe 760 to 1,000 units at Town Center. Is that too much right now?

好的。我想這個問題有點棘手，你們是如何考慮市中心公寓單元的需求的？你那裡已經有大約 760 個單位。在不削弱現有單位定價的情況下，您可以在其中添加多少，並添加另一個最終將成為 150、200、300 個單位的產品，無論您在想什麼。您如何看待 Town Center 的 760 套到 1,000 套。現在是不是太多了？

It's a really good question, Rob. It's something that we're considering as we speak. And it's actually even broader than that. Not only are we not willing to dilute ourselves as we get the highest rents in the region here at Town Center. But also, there is competition for these dollars.

這是一個非常好的問題，羅伯。這是我們在發言時正在考慮的事情。它實際上比這更廣泛。我們不僅不願意稀釋自己，因為我們在 Town Center 獲得了該地區最高的租金。但是，這些美元也存在競爭。

So a new project here in Virginia Beach, we know we'll be successful. But is that the best use of our dollars when they could be deployed in Charlotte or Atlanta or Charleston or Raleigh. And we have all those opportunities. So not only do we need to see that it would be very accretive to add here. But we also have to be convinced that it's going to be better than and I'll say, competing project that we can do in another region.

所以在弗吉尼亞海灘的一個新項目，我們知道我們會成功。但是，當我們的資金可以部署在夏洛特、亞特蘭大、查爾斯頓或羅利時，這是對我們資金的最佳利用嗎？我們擁有所有這些機會。因此，我們不僅需要看到在此處添加內容會非常增值。但我們也必須確信，它會比我們可以在另一個地區做的競爭項目更好，我會說。

And if you choose to just basically take the Bed Bath and retenant them, as is, what type -- how material is the TIs that you need to do on a per square foot basis in order for it to be ready for another tenant to move in?

而且，如果您選擇基本上只使用 Bed Bath 並按原樣保留它們，那麼您需要在每平方英尺基礎上做什麼樣的 TI 材料，以便為另一個租戶搬遷做好準備在？

Well, a lot depends on who those tenants are. Like I said, we really would gravitate towards new-to-market tenants. And while that can be an expensive proposition, we effectively have a feeding frenzy right now with people that are wanting us to deal with them in terms of getting first position on the new space. So it remains to be seen where that ends up. In any event, so I can assure you it will be accretive versus the Bed Bath that was sitting there. We just want to make best use of the dollars as well as add to the mix here at Town Center.

好吧，很大程度上取決於那些租戶是誰。就像我說的，我們真的會傾向於新入市的租戶。雖然這可能是一個昂貴的提議，但我們現在實際上與那些希望我們在新空間中獲得第一位置的人打交道。因此，最終結果還有待觀察。無論如何，所以我可以向你保證，與坐在那裡的床浴相比，它會增加。我們只是想充分利用這些錢，並在 Town Center 增加投資組合。

And does that hold true for the Durham location as well?

這是否也適用於達勒姆地區？

Durham is a little bit -- of a different story. That's a traditional strip center, and it has an awful lot of restrictions on it in terms of what you can and cannot put in there. Fortunately, the tenant that is desperate to get in there, fits all the restrictions. So that will probably be a one and done more type of deal.

達勒姆有點不同的故事。那是一個傳統的脫衣舞中心，它對你能放什麼和不能放什麼有很多限制。幸運的是，迫切希望進入那裡的房客符合所有限制條件。所以這可能會是一個並且完成更多類型的交易。

And then last one for me. Any known move-outs at this point in the office or retail portfolio for the '23 or '24 expirations or on the office side, any known material downsizings?

然後最後一個給我。在辦公室或零售投資組合中的任何已知搬遷，以應對 23 年或 24 年到期，或者在辦公室方面，是否有任何已知的重大裁員？

So Harrisonburg, I would say in the Regal space is the kind of top of list. But as you know, we have and they're not known move out to be clear, but the term is ending. We have a 10-acre site there that we are also looking at with a similar eye, how do we best utilize that real estate. They are still paying rent. They are still performing up in Harrisonburg, but that's one, that's kind of top of mind there, 49,000 feet. But again, there are 10 acres sitting there that we want to get our hands on.

所以 Harrisonburg，我想說在 Regal 空間中是榜首。但如您所知，我們已經搬出，但他們不知道要搬走，但任期即將結束。我們在那裡有一個 10 英畝的場地，我們也以類似的眼光看待我們如何最好地利用該房地產。他們還在付房租。他們仍在哈里森堡表演，但那是一個，那是那裡最重要的地方，49,000 英尺。但同樣，那裡有 10 英畝的土地我們想要動手。

A couple of other retails, Rob, but other than that, we're in pretty good shape here. We expect most of these folks to renew and renew in place. So we feel good about that.

其他幾個零售店，Rob，但除此之外，我們這裡的狀況非常好。我們希望這些人中的大多數人能夠更新和更新到位。所以我們對此感覺很好。

Rob it would be -- on the office side, we're looking at potentially 1 move out, and we're already negotiating a letter of intent to refill that. And I really don't expect anything to happen materially on the office. Like I said here at Town Center, as Shawn mentioned, it's 99% full. We actually could stand to have somebody move out so we can just create a little breathing room for some of these other tenants.

Rob 它會是——在辦公室方面，我們正在考慮可能搬出 1 個，我們已經在談判一份意向書以重新填補它。而且我真的不希望在辦公室發生任何實質性的事情。就像我在 Town Center 所說的那樣，就像 Shawn 提到的那樣，它已經 99% 滿了。我們實際上可以忍受有人搬走，這樣我們就可以為其他一些租戶創造一點喘息的空間。

And that move out is it Town Center? Or is that elsewhere in the office portfolio?

搬出去是市中心嗎？還是辦公室組合中的其他地方？

It's a Town Center. We'll have an announcement and a replacement tenant here in a not-too-distant future.

這是一個城鎮中心。我們將在不久的將來在這裡發佈公告和更換租戶。

Your next question comes from Wes Golladay with Baird.

你的下一個問題來自 Baird 的 Wes Golladay。

Can you talk about how peak leasing season is shaping up to multifamily. Where are you sending out your renewals?

你能談談租賃旺季對多戶家庭的影響嗎？你在哪裡發送你的續訂？

Sure. So you said peak season for multifamily is shaping up well. We are, I would say, performing better than the cyclical historical kind of cyclical curve that we watch. We are seeing, as I mentioned, mid-single digits in terms of renewals, if you will. And we think that's where kind of where we predicted last year, the norm would hit this year. So we feel good about that. All of our properties are performing strong and continuing to ramp up into the second and third quarter -- kind of first quarter, obviously, is a little damp across the board. So second and third quarter look good, mid-single digits.

當然。所以你說多戶家庭的旺季正在形成。我想說，我們的表現比我們觀察到的周期性歷史曲線要好。正如我所提到的，如果您願意的話，我們正在看到續訂方面的中等個位數。我們認為這就是我們去年預測的地方，今年會達到常態。所以我們對此感覺很好。我們所有的物業都表現強勁，並在第二和第三季度繼續增長——顯然，第一季度整體有點潮濕。所以第二和第三季度看起來不錯，中個位數。

And when you look out to next year, do you see any supply pressure coming in?

當你展望明年時，你會看到任何供應壓力嗎？

Not necessarily in our kind of submarkets and our ecosystems. Again, we're kind of protected in certain cases by these mixed-use facilities, not only protected, but also kind of supplemented or turbocharged, if you will, by our ecosystem arrangements. We feel good about submarkets. There are certainly more supply coming online. But again, we don't see -- we haven't been underwriting double digits as folks were last year. We're in the mid-single digits and intend to remain there to be conservative.

不一定在我們的子市場和我們的生態系統中。同樣，在某些情況下，我們會受到這些混合用途設施的保護，不僅受到保護，而且如果您願意的話，我們的生態系統安排也會起到補充或渦輪增壓作用。我們對子市場感覺良好。肯定會有更多供應上線。但同樣，我們沒有看到——我們沒有像去年那樣承保兩位數。我們處於中位數，並打算保持保守。

Got it. And then maybe just switching over to retail. It seems like the demand is pretty strong. Can you confirm the Durham box for Bed Bath, it doesn't look like it will be a box split there? And then maybe overall, can you talk about the TIs in retail that seem to be ticking up on renewals?

知道了。然後也許只是轉向零售。看來需求還是蠻大的。你能確認 Bed Bath 的 Durham 盒子嗎，它看起來不像是一個分開的盒子？然後也許總的來說，你能談談零售業中似乎在續訂時增加的 TI 嗎？

So on the Bed Bath, like I said, it's -- the most likely candidate is -- we'll take the entire space. We've had inquiries from a couple of others to divide it up and we'll see that, it doesn't hold as much appeal for us. But again, never say never and we'll see what rents are.

所以在 Bed Bath 上，就像我說的，它是——最有可能的候選人是——我們將佔據整個空間。我們已經收到其他幾個人的詢問，希望將其分開，我們會看到，它對我們沒有那麼大的吸引力。但同樣，永遠不要說永遠，我們會看到租金是多少。

As far as TIs we're pretty happy with the re-leasing spreads that we're getting and the double-digit same-store growth. We're happy to invest TIs for credit tenants that are going to be with us for a long time.

就 TI 而言，我們對獲得的轉租價差和兩位數的同店增長感到非常滿意。我們很高興為將與我們長期合作的信貸租戶投資 TI。

Okay. And then maybe on the acquisition front, you mentioned that you want to wait for a better cost of capital. But could you do more OP unit deals above the stock price to get some acquisitions done?

好的。然後也許在收購方面，你提到你想等待更好的資本成本。但是你能做更多高於股價的 OP 單位交易來完成一些收購嗎？

We could. Again, we're not -- as you know us, we're far in a way the largest shareholder in the company. And so we don't take the deployment of OP units lightly. Even at the premium that we can charge now, we think they're well undervalued. So we're going to be very selective about that happening.

我們可以。同樣，我們不是——正如你所知，我們在某種程度上是公司最大的股東。因此，我們不會掉以輕心地部署 OP 部隊。即使以我們現在可以收取的溢價計算，我們認為它們的價值也被低估了。因此，我們將對這種情況非常有選擇性。

At the same time, we're going to continue to be opportunistic. I mean, the market has obviously mispriced, high-quality real estate in general, in our equity in particular, but that's not going to dissuade us from adding trophy properties when possible.

與此同時，我們將繼續投機取巧。我的意思是，市場顯然對一般的優質房地產進行了錯誤定價，尤其是在我們的股票中，但這不會阻止我們在可能的情況下增加獎杯房產。

Next question comes from Peter Abramowitz with Jefferies.

下一個問題來自 Jefferies 的 Peter Abramowitz。

Yes, I just wanted to follow up. I know there were some questions here about the TIs on the Bed Bath & Beyond the 2 spaces. Are you able to quantify what do you think the mark-to-market is on those spaces today?

是的，我只是想跟進。我知道這裡有一些關於 Bed Bath & Beyond the 2 spaces 上的 TI 的問題。您是否能夠量化您認為當今這些空間的按市值計價的情況？

Peter, it's hard to say right now. The last Bed Bath that we refilled, we refilled on an, as is where is basis. And so strictly by the metrics that people follow of re-leasing spreads that look bad, I'll tell you that we'll do that deal every time for the right tenant. So it's -- it's too early to say right now. I can' say that if we deploy new capital, it's going to be a substantially higher cap rate than what we were looking at with Bed Bath as a value.

彼得，現在很難說。我們重新裝滿的最後一個 Bed Bath，我們重新裝滿了基礎。因此，嚴格按照人們遵循的重新租賃利差的指標來看，看起來很糟糕，我會告訴你，我們每次都會為合適的租戶做那筆交易。所以 - 現在說還為時過早。我不能說，如果我們部署新資本，它的資本化率將大大高於我們將 Bed Bath 作為價值所看到的資本化率。

Okay. Got it. And then also on the TI front, I guess, could you just talk about the tenant you're talking to for the office space at Southern Post, I know it's probably not easy for them to necessarily find new development in a suburban submarket like that. But overall, it is a tough office environment.

好的。知道了。然後在 TI 方面，我想，你能不能談談你正在與南方郵政的辦公空間交談的租戶，我知道他們可能並不容易在這樣的郊區子市場找到新的開發項目.但總的來說，這是一個艱苦的辦公環境。

So could you talk about TIs for that and just kind of the rent levels that you're looking at relative to your underwriting, how that's kind of shaping up?

那麼，您能否談談 TI 以及您所看到的相對於您的承保的租金水平，這是如何形成的？

Yes. We're actually a bit above pro forma rents. Shawn, do you have the stats there?

是的。我們實際上比預估租金高一點。肖恩，你那裡有統計數據嗎？

Yes, I was going to say the same thing. I think we're performing at least specifically in that lease, like I said, at least to be 40% kind of anchor 40% of the office space, and we are above where we thought we would be from a pro forma rent standpoint. As you know, TIs continue to increase.

是的，我正要說同樣的話。我認為我們至少在租約中表現得特別好，就像我說的那樣，至少有 40% 的錨定了 40% 的辦公空間，而且從備考租金的角度來看，我們高於我們認為的水平。如您所知，TI 繼續增加。

But to Lou's comment on the last question, when we baked this all in, we are happy to see a higher yield and with a high credit tenant happy to lock that in, in the office space on a long-term lease. So I think, all in all, we are better than we pro forma-ed at least thus far, and we'll continue to look for those types of opportunities.

但對於 Lou 對最後一個問題的評論，當我們把這一切都考慮在內時，我們很高興看到更高的收益率，並且有一個高信用的租戶樂於將其鎖定在長期租賃的辦公空間中。所以我認為，總而言之，至少到目前為止，我們比我們預想的要好，我們將繼續尋找這些類型的機會。

Peter, I know you you're talking to an awful lot of companies. We're just not seeing what most people are seeing, what I guess is what most people are seeing, we're demanding higher rents -- and when someone is demanding higher TIs, then they pay rent fully for it.

彼得，我知道你正在與很多公司交談。我們只是沒有看到大多數人所看到的，我猜大多數人都看到了，我們要求更高的租金——當有人要求更高的 TI 時，他們就會為此全額支付租金。

And as you -- at 97% or whatever it is, leased, we can be awfully selective with who we want to bring in. The KPMG deal is a great example that Shawn mentioned earlier. We really wanted that tenant and there was no space here. So we -- we actually spent some extra money to move folks around, so we can create 15,000 feet for those folks. But that's a tenant that's going to be here forever.

當你——以 97% 或任何形式租賃時，我們可以非常有選擇性地選擇我們想要引進的人。畢馬威的交易是肖恩之前提到的一個很好的例子。我們真的想要那個租戶，但這裡沒有空間。所以我們 - 我們實際上花了一些額外的錢讓人們四處走動，所以我們可以為這些人創造 15,000 英尺。但那是一個將永遠留在這裡的租戶。

So you've got to -- we have -- just a different paradigm than what I think is happening or at least what you read in the headlines, what's happening in the market.

所以你必須——我們有——只是一個不同於我認為正在發生的事情的範例，或者至少你在頭條新聞中讀到的，市場上正在發生的事情。

Okay. Got it. And then one last one. So you have the Interlock lined up here for another kind of -- has taken a lot of your attention here and is the big use of capital this year. I guess, generally, could you talk about -- I think maybe there were some discussion before in the guidance of some kind of more traditional like grocery anchor shopping center deals, whether off-market or marketed.

好的。知道了。然後是最後一個。所以你在這裡排隊等待另一種 - 在這裡引起了你的很多關注，並且是今年資本的大量使用。我想，一般來說，你能談談——我想也許之前在某種更傳統的雜貨店主購物中心交易的指導下進行過一些討論，無論是場外交易還是市場交易。

Could you talk about that space? Are you seeing any kind of distress from sellers and potential opportunity. And if you do see that, how would you be able to address that. Obviously, that would be attractive, but then you have to balance that against capital needs.

你能談談那個空間嗎？您是否看到賣家的任何困擾和潛在的機會？如果你真的看到了，你將如何解決這個問題。顯然，這很有吸引力，但你必須在資本需求之間取得平衡。

Sure. Again, I'm not sure what's happening nationwide and what the headlines are. But I can tell you, in our markets, high-quality neighborhood retail is not being offered at any kind of discount. So it's -- we're still in a position where the kind of things that we want to own, we're probably going to have to create because they're still trading at -- the ones that are trading, are trading at various diff cap rates.

當然。同樣，我不確定全國范圍內正在發生什麼以及頭條新聞是什麼。但我可以告訴你，在我們的市場中，高質量的社區零售店沒有任何折扣。所以它 - 我們仍然處於我們想要擁有的東西的位置，我們可能不得不創造，因為它們仍在交易 - 那些正在交易的東西，正在以各種方式交易差異上限率。

So that -- those -- the horror stories that you're hearing and seeing just aren't happening in the belt from Maryland down to Virginia and the Carolinas and Georgia.

所以——那些——你聽到和看到的恐怖故事並沒有發生在從馬里蘭州到弗吉尼亞州、卡羅來納州和佐治亞州的地帶。

(Operator Instructions) Next question, we have Chris Sakai with Singular Research.

（操作員說明）下一個問題，我們有來自 Singular Research 的 Chris Sakai。

Can you talk about pricing on the construction side of things. Has it moderated still? And what are you seeing as far as commodity pricing is concerned?

你能談談建築方面的定價嗎？還緩和了嗎？就商品定價而言，您怎麼看？

Sure. I guess the best way to characterize it is that we're no longer seeing double-digit increases across the board in construction prices. Commodities have moderated a bit. Labor has not, and there's still a shortage of highly qualified contractors to go around.

當然。我想最好的描述方式是我們不再看到建築價格全面出現兩位數的增長。大宗商品有所緩和。工黨沒有，而且仍然缺乏高素質的承包商。

So what we're seeing year-over-year is that prices have stabilized, but they've stabilized at a very high level. I think that's going to continue to choke some new development off. With regard to our construction company, they're doing -- aside from the T. Rowe price building, it's almost exclusively in the multifamily space that our third-party clients are remaining very active. Partially because wood prices have come down substantially over the last 6 months or so.

因此，與去年同期相比，我們看到的是價格已經穩定下來，但它們已經穩定在一個非常高的水平。我認為這將繼續阻礙一些新的發展。關於我們的建築公司，他們正在做——除了 T. Rowe price 大樓，我們的第三方客戶幾乎只在多戶住宅領域保持活躍。部分原因是木材價格在過去 6 個月左右大幅下降。

And then as far as your guidance is concerned, can you talk about expectations for occupancy in that guidance?

然後就您的指導而言，您能否談談該指導中對入住率的期望？

Yes. We're -- obviously, we're at a very high level right now, nearly 98% portfolio-wide. And as Shawn mentioned, 99% leased here at Town Center. Our expectation has always been that our properties stabilize in the mid-90s. We don't get overly excited when they get to the high 90. Our historic lows are in the low 90s. So it's going to fluctuate in that area.

是的。我們 - 顯然，我們現在處於非常高的水平，接近 98% 的投資組合。正如肖恩所提到的，99% 的人都在 Town Center 租用這裡。我們一直期望我們的物業在 90 年代中期穩定下來。當他們達到 90 的高點時，我們不會過於興奮。我們的歷史低點處於 90 的低點。所以它會在那個區域波動。

When you have a portfolio that is not overly large, one substantial tenant can move that needle a bit. So that's why we just want to be in that range. It's great to be at 97%, 98%, 99%. But I can't -- we wouldn't say that, that's going to continue indefinitely. What I say -- what I can say, we believe will continue indefinitely is that we'll continue to move rents northward.

當你的投資組合不是太大時，一個重要的租戶可以稍微改變一下。所以這就是為什麼我們只想在那個範圍內。能達到 97%、98%、99% 真是太好了。但我不能——我們不會這麼說，這將無限期地持續下去。我要說的是——我能說的是，我們相信會無限期地繼續下去，我們會繼續將租金向北移動。

And there are no further questions at this time. I'll turn the call to Louis for closing remarks.

目前沒有其他問題。我會把電話轉給 Louis，請他作結束語。

Thanks, everyone, for your attention this morning. We appreciate your interest in the company. We look forward to more announcements over the next couple of months, and stay tuned. Thank you. Bye-bye.

謝謝大家今天早上的關注。我們感謝您對公司的興趣。我們期待在接下來的幾個月內發布更多公告，敬請期待。謝謝。再見。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。