Armada Hoffler Properties Inc (AHH) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler Third Quarter 2023 Earnings Call. (Operator Instructions) This call is being recorded on Thursday, November 2, 2023.

早安，女士們、先生們，歡迎參加 Armada Hoffler 2023 年第三季財報電話會議。 （操作員說明）此電話錄音時間為 2023 年 11 月 2 日星期四。

I would now like to turn the conference over to Chelsea Forrest. Please go ahead.

我現在想把會議交給切爾西·福雷斯特。請繼續。

Good morning, and thank you for joining Armada Hoffler's Third Quarter 2023 Earnings Conference Call and Webcast. On the call this morning, in addition to myself, is Lou Haddad, CEO; Matthew Barnes-Smith, CFO; and Shawn Tibbetts, COO.

早安，感謝您參加 Armada Hoffler 的 2023 年第三季財報電話會議和網路廣播。今天早上參加電話會議的除了我自己之外還有執行長盧·哈達德 (Lou Haddad)。馬修‧巴恩斯‧史密斯，財務長；和首席營運長肖恩·蒂貝茨 (Shawn Tibbetts)。

The press release announcing our third 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 December 2, 2023. The numbers to access the replay are provided in the earnings press release. For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, November 2, 2023, and will not be updated subsequent to this initial earnings call.

今天早上發布了宣布我們第三季收益的新聞稿以及我們的補充方案。電話會議結束後不久即可重播，截止日期為 2023 年 12 月 2 日。收益新聞稿中提供了訪問重播的號碼。對於那些收聽重播本簡報的人，我們提醒您，本文中的言論截至今天（2023 年 11 月 2 日），並且不會在本次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 guidance and outlook. 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.

在這次電話會議中，我們可能會做出前瞻性陳述，包括與我們的投資組合的未來業績、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、我們的投資組合績效和融資活動以及對我們的指導和前景的評論。請聽眾注意，任何前瞻性陳述均基於管理層的信念、假設和期望，並考慮了當前可獲得的資訊。

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 the documents we have filed with or furnished to the SEC.

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，並非所有事件或因素都是已知的，而且其中許多難以預測並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有重大差異，我們建議聽眾查看我們今天上午分發的新聞稿中披露的前瞻性聲明以及我們提交的文件中披露的風險因素或提交給SEC 。

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 衡量標準的定義以及與最具可比性 GAAP 衡量標準的調整均包含在季度補充包中，該補充包可在我們的網站 armadahoffler.com 上取得。

I'll now turn the call over to Lou.

我現在將電話轉給盧。

Thanks, Chelsea. Good morning, everyone, and thank you for joining us. Today, we reported normalized FFO for the third quarter of $0.31 per share. In line with our expectations and consistent with our full year guidance. As you can see from our press release, the portfolio continues to deliver positive growth in same-store operating income and re-leasing spreads while maintaining company-wide occupancy in the high 90s. We continue to prove that best-in-market properties yield impressive results in most any economic climate. Shawn and Matt will give you the details on the quarter as well as the current state of operations and financial metrics.

謝謝，切爾西。大家早安，感謝您加入我們。今天，我們報告第三季度標準化 FFO 為每股 0.31 美元。符合我們的預期並符合我們的全年指導。正如您從我們的新聞稿中看到的，該投資組合繼續實現同店營業收入和再租賃利差的正增長，同時將全公司的入住率維持在 90 多歲的高位。我們不斷證明，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成果。肖恩和馬特將為您提供有關本季度的詳細資訊以及當前的營運狀況和財務指標。

I'll take a few minutes to highlight just a few examples of the key advantages to having a diversified business model. Well, there is maybe at the mercy of their particular sector and whether it's externally under pressure or out of favor. Our ability to adapt to changing market conditions across asset classes and business lines, gives us the unique ability to preserve earnings growth while making the right real estate decision for the long-term health of any given property versus accepting substandard outcomes in the name of preserving short-term earnings.

我將花幾分鐘時間重點介紹擁有多元化商業模式的關鍵優勢的幾個例子。好吧，這可能取決於他們特定的行業，以及它是否受到外部壓力或失寵。我們能夠適應跨資產類別和業務線不斷變化的市場條件，這使我們具有獨特的能力，可以保持盈利增長，同時為任何特定財產的長期健康狀況做出正確的房地產決策，而不是以保留的名義接受不合格的結果短期收益。

As case in point, we, like all landlords who hold leases with WeWork have been asked to take substantial rent reductions in order to preserve their lease commitments. As you may know, we have 2 leases with this tenant in the total portfolio at the Interlock in West Midtown Atlanta, and One City Center in Durham, North Carolina. Both are new trophy class mixed-use buildings and vibrant urban walkable locations. We have no interest in impairing either of these prime assets for the below-market lease and are very comfortable with prospects for backfill, should we choose to reclaim the space.

舉個例子，我們和所有與 WeWork 簽訂租約的房東一樣，被要求大幅降低租金，以維持其租賃承諾。如您所知，在亞特蘭大西中城的 Interlock 和北卡羅來納州達勒姆的 One City Center 的總投資組合中，我們與該租戶簽訂了 2 份租約。兩者都是全新的獎盃級混合用途建築和充滿活力的城市步行場所。我們無意因低於市場價格的租賃而損害這些主要資產，並且如果我們選擇收回該空間，則對回填的前景非常滿意。

We're always willing to help our tenants who, despite good faith efforts may be going through a rough patch. That's just good business. However, we will not compromise superior locations with low-yielding material leases in either office or retail assets. Due to the strength of the vast majority of our holdings as well as our Construction and Development division, we are comfortable to assert that full year 2023 guidance remains unchanged and that we expect continued earnings and dividend growth next year, irrespective of the WeWork outcome or that of a handful of other smaller tenant challenges we face within a few assets. Shawn will give you an update on the robust leasing activity we are seeing across the portfolio in a small amount of vacancy that we possess.

我們始終願意幫助我們的租戶，儘管我們做出了真誠的努力，但他們可能正在經歷一段艱難的時期。這真是一門好生意。然而，我們不會以低收益的辦公或零售資產租賃來犧牲優越的地理位置。由於我們持有的絕大多數股份以及我們的建築和開發部門的實力，我們可以放心地斷言，2023 年全年指引保持不變，並且我們預計明年的盈利和股息將持續增長，無論WeWork 的結果如何或我們在一些資產中面臨著其他一些較小的租戶挑戰。肖恩將為您介紹我們在整個投資組合中所看到的少量空置的強勁租賃活動的最新情況。

The second area that diversity yields significant advantages versus narrowly focused companies is that of finance. Through a decades-long successful track record in multiple business lines, we've achieved a BBB credit rating and have accrued a large and growing stable of banks that continue to extend additional credit to us. At a time when lenders are shying away from most commercial real estate, we continue to receive increasing commitments, and we are successfully mitigating future risks through derivative purchases.

與業務範圍狹窄的公司相比，多元化帶來顯著優勢的第二個領域是金融領域。透過在多個業務領域長達數十年的成功記錄，我們已獲得 BBB 信用評級，並累積了大量且不斷增長的穩定銀行，這些銀行不斷向我們提供額外信貸。在貸款人迴避大多數商業房地產的時候，我們繼續收到越來越多的承諾，我們正在透過衍生性商品購買成功地降低未來風險。

The end result of which is that we've been able to continue our development activities, initiate the $50 million share repurchase program, and lock in relatively low interest rates on all portfolio debt for the next 2 years. Matt will fill you in on the details of these transactions.

最終結果是，我們能夠繼續我們的開發活動，啟動 5000 萬美元的股票回購計劃，並在未來 2 年內鎖定所有投資組合債務的相對較低利率。馬特將向您提供這些交易的詳細資訊。

Yet another major benefit comes from our construction and development operations with third-party fee income at all-time highs and an elevated level of backlog, our expectation is for 2023 to be our most profitable year ever, and we expect similar results in 2024. These earnings allow us to further flexibility and dealing proactively with potential issues elsewhere without endangering profit growth.

另一個主要好處來自我們的建設和開發業務，第三方費用收入創歷史新高，積壓水平也很高，我們預計2023 年將成為我們有史以來利潤最高的一年，我們預計2024 年會出現類似的結果。這些收益使我們能夠進一步提高靈活性，並積極主動地處理其他地方的潛在問題，而不會危及利潤增長。

Additionally, we expect development activities at our 2 Harbor Point joint ventures to give us a significant source of capital to reduce leverage once they are completed in about a year. This will be especially important as equity prices remain suppressed for the longer term. Shawn will give you an update on that progress as well as the strong pre-leasing activity occurring at Southern Post.

此外，我們預計我們的 2 個 Harbour Point 合資企業的開發活動一旦在大約一年內完成，將為我們提供重要的資金來源，以降低槓桿率。由於股價長期受到壓制，這一點尤其重要。肖恩將向您介紹南方郵報的最新進展以及強勁的預租活動。

For years, we have been describing the advantages of our business model, vertical integration of the development process, asset class diversification, mixed-use environments and best-in-class properties are all important factors in our platform as well as our value proposition. While we understand some investors focus on single asset class REITs, our ability to dominate submarkets with multi-use projects is its own unique advantage. This approach to real estate, 44 years in the making, has produced substantial growth over the last 10 years despite the challenges of the pandemic and the current disfavor of the commercial real estate sector, which has impacted property values consequently reducing our multiple and undervaluing our equity.

多年來，我們一直在描述我們的業務模式的優勢、開發流程的垂直整合、資產類別多元化、混合用途環境和一流的物業，這些都是我們平台和價值主張的重要因素。雖然我們理解一些投資者專注於單一資產類別房地產投資信託基金，但我們透過多用途項目主導子市場的能力是其獨特的優勢。這種房地產方法經過44 年的醞釀，在過去10 年裡實現了大幅增長，儘管面臨疫情的挑戰以及目前商業房地產行業的不受歡迎，這影響了房地產價值，從而降低了我們的本益比並低估了我們的估值。公平。

While this can be viewed as respectable performance by many, it's by no means satisfactory to us. Our goal remains to demonstrate the true worth of superior assets, both property and human, and return the equity value to its previous highs and regardless of the macro environment, while providing solid interim returns to a safe and growing dividend.

雖然這在許多人看來是值得尊敬的表現，但我們絕不能令人滿意。我們的目標仍然是展示優質資產（包括財產和人力）的真正價值，並將股權價值恢復到先前的高點，無論宏觀環境如何，同時為安全且不斷增長的股息提供堅實的中期回報。

Before we intend to continue adding to earnings and dividends in 2024 as we wait for the market to recognize superior outperformance. For the next -- over the next 1 to 2 years, in addition to continuing measurable growth, we intend to make strategic moves that should further separate our trajectory versus that of our peers as well as reinforce the flexibility, resiliency and foundational strength of our diversified platform.

在此之前，我們打算在 2024 年繼續增加獲利和股息，等待市場認可其卓越的表現。在接下來的一到兩年裡，除了持續可衡量的成長外，我們還打算採取策略舉措，進一步將我們的發展軌跡與同行區分開來，並加強我們的靈活性、彈性和基礎實力。多元化平台。

I'll now turn the call over to Shawn to review the operating metrics.

現在，我將把電話轉給肖恩，以審查營運指標。

Thank you, Lou. We, at Armada Hoffler remain highly focused on running our playbook by developing high-quality real estate, safely and efficiently constructing buildings, all while operating and managing the stabilized properties with intentionality and purpose. The combination of disciplined execution in accordance with our corporate values serves as the foundation of the Armada Hoffler value creation model. The supplemental package contains a recap of our operating highlights. I would like to call out a few of the noteworthy metrics that are contributing to our continued growth and sustained high occupancy across the portfolio.

謝謝你，盧。 Armada Hoffler 仍然高度專注於透過開發高品質房地產、安全高效地建造建築物來運行我們的劇本，同時有目的和有目的地運營和管理穩定的房產。嚴格的執行與我們的企業價值觀結合，構成了 Armada Hoffler 價值創造模式的基礎。補充包包含我們營運亮點的回顧。我想指出一些有助於我們持續成長和整個投資組合持續高入住率的值得注意的指標。

Quarter 3, year-over-year same-store NOI was positive in all segments and was 4.4% on a GAAP basis and 5.9% on a cash basis. Quarter 3 year-over-year re-leasing spreads on the commercial portfolio were positive 14.5% on a GAAP basis and 4.9% on a cash basis. Leasing activity was robust during the third quarter. We executed leases on over 120,000 square feet within the stabilized commercial portfolio. It's important to note that less than 3% of our 6.2 million square feet of commercial space is currently vacant, 58% of which has active deals being contemplated. Our multifamily portfolio continues to perform in a consistent and sustainable manner as a result of the trophy quality and superior location of the assets.

第三季度，所有細分市場的年比同店 NOI 均為正值，以 GAAP 計算為 4.4%，以現金計算為 5.9%。第三季商業投資組合的再租賃利差以公認會計準則計算為 14.5%，以現金計算為 4.9%。第三季租賃活動強勁。我們在穩定的商業投資組合中租賃了超過 120,000 平方英尺的土地。值得注意的是，我們 620 萬平方英尺的商業空間目前只有不到 3% 是空置的，其中 58% 的商業空間正在考慮進行積極的交易。由於資產的品質和優越的地理位置，我們的多戶型投資組合繼續以一致和可持續的方式表現。

Our team continues to grow NOI at a mid-single-digit pace. We intend to replicate this optimal performance as our footprint expands throughout the Southeast over time. The retail portfolio is also outperforming at 98.1% occupancy. As I mentioned earlier in the call, retail has been very active over the past few quarters with continued levels of elevated leasing activity throughout our 4 million square foot portfolio. Tomorrow, LEGO will hold a grand opening celebration for their new store at our flagship Town Center location. We are capitalizing on this high-profile momentum and are currently in discussions with other credit tenants for space within our Town Center ecosystem.

我們的團隊繼續以中等個位數的速度成長 NOI。隨著時間的推移，我們的足跡遍布整個東南部，我們打算複製這種最佳表現。零售投資組合的入住率也表現出色，達到 98.1%。正如我之前在電話會議中提到的，過去幾季零售業一直非常活躍，我們 400 萬平方英尺的投資組合中的租賃活動持續增加。明天，樂高將在我們的市中心旗艦店舉辦盛大的新店開幕慶典。我們正在利用這一引人注目的勢頭，目前正在與其他信貸租戶討論我們市中心生態系統內的空間。

Although not consistent with the broader narrative, our office portfolio continues to remain highly leased and occupied. In terms of additional leasing activity, we continue to experience strong demand for our trophy office product in the submarkets within our geographic footprint. This flight to quality is tangible in terms of both the occupancy of our buildings and the rents that are collected ultimately adding significant value despite headwinds present in the broader market.

儘管與更廣泛的敘述不一致，但我們的辦公室組合繼續保持高度租賃和占用。在額外的租賃活動方面，我們的地理範圍內的子市場對我們的獎杯辦公產品的需求持續強勁。儘管更廣泛的市場存在阻力，但從我們建築物的佔用率和收取的租金來看，這種對品質的追求是有形的，最終增加了巨大的價值。

The percentage of office leased sits at 96.1%. Led by Town Center office at 98.9% of the nearly 800,000 square feet. Our tenant watch list has remained consistent over the past few quarters. Lou touched on WeWork earlier, so I will focus on other notable inclusions. The former Bed Bath & Beyond in Durham has also remained top of mind and discussions with a short list of suitors for that space are progressing. As mentioned last quarter, in the Virginia Beach location, we have used the opportunity cost equation to narrow the programmatic options to best fit our strategy. We are very pleased that out of the over 700 tenants in our portfolio, only 11 are on watch list status.

辦公室出租率達96.1%。以市中心辦公室為首，佔近80萬平方英尺的98.9%。我們的租戶觀察名單在過去幾季保持一致。 Lou 早些時候談到了 WeWork，因此我將重點介紹其他值得注意的內容。達勒姆 (Durham) 的前 Bed Bath & Beyond 也仍然是人們關注的焦點，與該空間的少數追求者的討論正在進行中。正如上個季度所提到的，在維吉尼亞海灘地點，我們使用機會成本方程式來縮小程序選項，以最適合我們的策略。我們非常高興的是，在我們投資組合的 700 多個租戶中，只有 11 個處於觀察名單上。

At Harbor Point in Baltimore, we continue to make significant progress toward completion of the T. Rowe Price global headquarters, scheduled to be delivered in the third quarter of 2024. Additionally, Allied, the 312-unit luxury apartment project will be integrated into the Harbor Point ecosystem and delivered in a similar time frame. We couldn't be more excited to realize the benefit of completion of these projects.

在巴爾的摩的 Harbor Point，我們繼續在 T. Rowe Price 全球總部的竣工方面取得重大進展，計劃於 2024 年第三季度交付。此外，Allied 的 312 套豪華公寓項目將被整合到Harbor Point 生態系統並在相似的時間範圍內交付。意識到完成這些項目的好處，我們感到無比興奮。

In Roswell, Georgia, we are making significant progress toward completion of the Southern Post mixed use project. 68% of the commercial space is now leased or under LOI with a roster of high-end experiential dining and retail offerings as well as high-credit corporate office tenants and well above pro forma rents. Additionally, the 137-unit multifamily project at Southern Post, Chandler Residences, is already seeing strong demand with a prospect list of over 500 people. These high-quality units are positioned at the high end of the submarket and are expected to be put in service beginning February 2024.

在喬治亞州羅斯威爾，我們在南方郵報綜合用途計畫的完成方面取得了重大進展。 68% 的商業空間現已出租或正在意向書中，其中包括一系列高端體驗式餐飲和零售產品以及高信用企業辦公室租戶，租金遠高於預計租金。此外，Southern Post 的 Chandler Residences 多戶住宅項目擁有 137 個單元，需求強勁，潛在客戶名單超過 500 人。這些優質單元定位於子市場的高端，預計將於2024年2月開始投入使用。

Our construction team is focused on delivering high-quality real estate that will significantly expand our portfolio, thereby serving the long-term strategy of our company and, therefore, our shareholders. We have a robust third-party contracted backlog that is currently over $500 million and our shadow pipeline looks robust.

我們的建築團隊專注於提供高品質的房地產，這將顯著擴大我們的投資組合，從而服務於我們公司的長期策略，從而服務於我們的股東。我們擁有強大的第三方合約積壓訂單，目前已超過 5 億美元，而且我們的影子管道看起來也很強勁。

Portfolio of preferred equity investments is progressing nicely and we anticipate payoff of these positions according to plan. As discussed previously, our partners are best-in-class in the residential space. And we, if given the opportunity, would love to own one of those assets at the appropriate price, especially given their proximity to our target markets in the Southeast.

優先股投資組合進展順利，我們預計這些部位將按計畫獲得回報。如前所述，我們的合作夥伴是住宅領域的一流合作夥伴。如果有機會，我們很樂意以適當的價格擁有其中一項資產，特別是考慮到它們靠近我們東南部的目標市場。

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. The team continues to perform extraordinarily well even against the adverse backdrop on the broader macro economy. For the third quarter of 2023, we recorded FFO of $0.31 per diluted share and normalized FFO of $0.31 per diluted share, in line with both guidance and analyst consensus. We maintained our guidance range accordingly at normalized FFO of $1.23 to $1.27 per diluted share.

早安，謝謝你，肖恩。即使在更廣泛的宏觀經濟不利的背景下，該團隊仍然表現出色。 2023 年第三季度，我們記錄的 FFO 為每股稀釋每股 0.31 美元，標準化 FFO 為每股稀釋每股 0.31 美元，符合指導意見和分析師共識。我們相應地將指導範圍維持在每股攤薄後每股 1.23 美元至 1.27 美元的標準化 FFO 水準。

Our stabilized leverage metric was 6.2x this quarter, which is slightly above our target range due to the debt incurred in connection with our acquisition of the Interlock asset earlier this year. When our ancillary debt is included, leverage is 7.1x consistent with last quarter. As articulated on the previous earnings call, this metric will temporarily increase over the next few periods until the assets in our development pipeline start producing cash flow. The leverage is anticipated to decrease back into our target range as EBITDA continues to grow.

本季我們的穩定槓桿指標為 6.2 倍，略高於我們的目標範圍，因為我們今年稍早收購 Interlock 資產時產生了債務。當包括我們的輔助債務時，槓桿率為 7.1 倍，與上季一致。正如先前的財報電話會議中所闡述的那樣，該指標將在接下來的幾個時期內暫時增加，直到我們的開發管道中的資產開始產生現金流。隨著 EBITDA 持續成長，槓桿率預計將回落至我們的目標範圍。

Our debt service coverage ratio and fixed charge coverage ratio were 2.5x and 2.2x, respectively, with our weighted average cost of debt maintaining its level just above 4% for the quarter. The team's continued ability to manage and execute our balance sheet strategy and these adverse market conditions will yield benefits far past this economic cycle.

我們的償債覆蓋率和固定費用覆蓋率分別為 2.5 倍和 2.2 倍，本季加權平均債務成本維持在略高於 4% 的水平。團隊持續管理和執行我們的資產負債表策略的能力以及這些不利的市場條件將在本次經濟週期之後帶來遠遠的效益。

Our liquidity position continues to be strong at roughly $190 million, more than ample to cover the 2023 cash requirements for our remaining development pipeline and our preferred equity investments. This, combined with our well-structured debt maturity ladder means that we can adequately support the team in achieving our portfolio growth objectives.

我們的流動性狀況持續保持強勁，約 1.9 億美元，足以滿足我們剩餘開發管道和優先股權投資的 2023 年現金需求。這與我們結構良好的債務到期階梯相結合，意味著我們可以充分支持團隊實現我們的投資組合成長目標。

On the call last quarter, I discussed our 2024 derivative maturities and indicated that we would 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. With interest rates expected to be higher for longer, we moved ahead and replace the derivatives that were expiring in the last quarter of this year and the first quarter of next year. With the intent to maintain that our debt is close to 100% fixed or hedged in the short term. Our intent is to continually mitigate the risk of rising interest rates in the most efficient manner.

在上個季度的電話會議上，我討論了我們2024 年的衍生品到期日，並表示我們將監控環境，以確保我們要么在私募市場上將可變利率債務轉換為長期固定利率債務，要么在我們的目前的職位組合已經成熟。由於預計利率將在更長時間內保持在較高水平，因此我們提前更換了今年最後一個季度和明年第一季到期的衍生性商品。旨在維持我們的債務在短期內接近 100% 固定或對沖。我們的目的是以最有效的方式持續降低利率上升的風險。

To that end, we also entered into 2 short-term swap locks on our portion of the construction debt associated with our joint venture partnerships in Harbor Point. As we mentioned earlier, we may look to exit our positions in these assets at the appropriate time. As you will all recall, in June, our Board of Directors authorized a share repurchase program. In late September, we took advantage of market conditions and initiated the program purchasing back our daily allowable limit for a 7-day period. During this time, we purchased back a total of nearly 600,000 shares of common stock at a weighted gross average price in the low $10 range. Given the increased uncertainty in capital markets, we intend to continue to monitor the program against market conditions. Whilst our conservative posture is biased towards capital preservation, we appreciate our Board of Directors authorizing this tool to use our discretion.

為此，我們也對與 Harbour Point 合資夥伴關係相關的部分建築債務簽訂了兩項短期互換鎖定。正如我們之前提到的，我們可能會在適當的時候退出這些資產的部位。大家都記得，六月，我們的董事會批准了一個股票回購計畫。 9月下旬，我們利用市場狀況啟動了為期7天的每日限額回購計畫。在此期間，我們以 10 美元區間內的加權總平均價格總共回購了近 60 萬股普通股。鑑於資本市場的不確定性增加，我們打算繼續根據市場狀況監控該計劃。雖然我們的保守態度偏向資本保全，但我們感謝董事會授權我們使用此工具來使用酌情權。

I will now pass the call back over to Shawn.

我現在將把電話轉回給肖恩。

Thanks, Matt. Finally, thank you to our talented team at Armada Hoffler. It is a pleasure to work with a group of individuals who are harnessing the power of a team to continuously create value for our shareholders. On behalf of our Board of Directors and the executive leadership team, we appreciate your focus and attention to detail that ultimately results in quality real estate that is poised to produce value for decades to come. Thank you for all that you do.

謝謝，馬特。最後，感謝 Armada Hoffler 的才華橫溢的團隊。很高興與一群人一起工作，他們利用團隊的力量不斷為我們的股東創造價值。我們謹代表我們的董事會和執行領導團隊，感謝您對細節的關注和關注，最終打造出有望在未來幾十年創造價值的優質房地產。感謝您所做的一切。

Operator, we are ready for the question-and-answer session.

接線員，我們已經準備好進行問答環節了。

(Operator Instructions) Our first question comes from Rob Stevenson from Janney.

（操作員說明）我們的第一個問題來自 Janney 的 Rob Stevenson。

You talked a little bit about WeWork. Are they still current on their rent?

您談到了一些關於 WeWork 的事情。他們還在支付租金嗎？

As of current -- as of now, Rob, but we're -- our expectation is that there is -- they're going to be asking for concessions. And as I said earlier, we're just not interested in preserving that lease in those locations with the amount of activity that we're seeing.

截至目前 - 截至目前，羅布，但我們 - 我們的期望是 - 他們將要求讓步。正如我之前所說，我們只是對在我們看到的大量活動中保留這些地點的租約不感興趣。

I mean, is there any value to you guys? I mean, you guys are -- have done this in the past, but is there any value to letting WeWork play out through bankruptcy, which is in the news that, that's coming pretty quickly here and be thrown into the unsecured pit. Or do you just go to them now ahead of that, let them out of the leases and get the space back now so that you don't have to wait months and months and months for that to play out and just move on?

我的意思是，對你們來說有什麼價值嗎？我的意思是，你們過去曾這樣做過，但讓 WeWork 通過破產來解決是否有任何價值，有消息稱，破產很快就會到來，並被扔進無擔保的深淵。或者你現在就去找他們，讓他們解除租約並收回空間，這樣你就不必等待數月、數月、數月的時間來完成並繼續前進？

There is value in that, Rob. It's difficult to say. It's a very fluid situation with them, as you might expect. It's difficult to say if that's going to be possible in the amount of time between now and when we believe that they'll file. In any respect, assuming that they continue to operate, then they will continue to owe rent irrespective of bank proceeding. So as I said earlier, we're going to make the right move for those properties. There are strong properties in great locations and irrespective of whatever turns out with WeWork our expectation is for growth next year.

這很有價值，羅布。很難說。正如你所料，他們的情況非常不穩定。很難說從現在到我們相信他們會提交文件的這段時間內這是否可能。無論如何，假設他們繼續經營，那麼無論銀行的程序如何，他們都將繼續欠租金。正如我之前所說，我們將為這些資產採取正確的行動。地理位置優越，擁有實力雄厚的房產，無論 WeWork 的業績如何，我們的預期都是明年的成長。

I'll add. It may not be a one-size-fits-all for the locations, Rob, right? So to Lou's point, we're looking at this property by property. So a dynamic situation, and we're all over it.

我補充一下。羅布，這可能不是一刀切的地點，對嗎？因此，就 Lou 的觀點而言，我們正在逐一屬性地查看此屬性。這是一個充滿活力的情況，我們已經結束了。

Okay. I mean is there an option for you guys directly or with some sort of local partner in those two markets, if you get that space back to continue to operate the built-out space as co-working? Or is it likely to just be all ripped out and re-leased as normal straight-out office to multiple tenants?

好的。我的意思是，如果你們拿回該空間並繼續以共同工作的方式運作內建空間，那麼你們是否可以直接選擇或與這兩個市場的某種當地合作夥伴合作？或者它可能會被全部拆除並作為正常的直接辦公室重新出租給多個租戶？

Both options are on the table. However, I don't believe that there's going to be a rip out option. They're really well appointed. And frankly, there -- doesn't seem to be anything wrong with the co-working model. I think the problem is unique to WeWork or maybe there's a couple of others, but there are several other operators, a couple of which are in our buildings that are doing just fine. So we'll see. There may be an opportunity to just keep going business as usual on the co-working side, but there's also some nice tenants in the market that are looking for trophy space. So in any respect, we're confident of the outcome on the other side of this thing.

兩種選擇都擺在桌面上。然而，我不相信會有一個被撕掉的選擇。他們真的佈置得很好。坦白說，共享辦公模式似乎沒有任何問題。我認為這個問題是 WeWork 獨有的，或者可能還有其他幾個問題，但還有其他幾個運營商，其中一些在我們的大樓裡，做得很好。所以我們拭目以待。共享辦公室方面可能有機會繼續照常營業，但市場上也有一些不錯的租戶正在尋找獎杯空間。因此，無論如何，我們對事情另一面的結果充滿信心。

Okay. And Shawn, I think you said the construction company shadow pipeline is robust. How much of that is Armada Hoffler business versus stuff for other parties?

好的。肖恩，我想你說過建築公司的影子管道很強大。與其他方的業務相比，Armada Hoffler 的業務有多少？

Yes. So what we're referring to in the shadow is the third-party piece. So 100% of what I mentioned would be third party. We're still seeing activity out there. Obviously, it's not at the same level that it was 2 years ago, for instance. But we feel comfortable maintaining that strong pipeline on a go forward, at least in the short run.

是的。所以我們在陰影中指的是第三方部分。所以我提到的 100% 都是第三方的。我們仍然看到那裡有活動。顯然，現在的水平與兩年前已經不一樣了。但我們對繼續保持這強大的管道感到放心，至少在短期內是如此。

Okay. And are any new developments, even multifamily making sense for you guys to put shovels in the ground at this point given the cost of capital? Or are you waiting to see what '24 brings before making those types of decisions?

好的。考慮到資金成本，任何新的開發項目，甚至是多戶住宅，對你們來說是否有必要在此時將鏟子投入地下？或者您正在等待 24 小時帶來什麼，然後再做出此類決定？

Yes. Thanks for the question, Rob. As you might expect, we're seeing countless opportunities as smaller developers and landowners are looking for any way to get their potential projects off the ground. As you might expect, we've raised the bar considerably. So unless something is yielding in the high single or low double-digit range we're not going to be pulling the trigger anytime soon. We're comfortable with the avenues we have for growth for next year. So I think the prudent thing is to sit tight but for a tremendous opportunity that you just don't want to pass up.

是的。謝謝你的提問，羅布。正如您所料，我們看到了無數的機會，因為小型開發商和土地所有者正在尋找任何方式來啟動他們的潛在專案。正如您所料，我們已經大幅提高了標準。因此，除非某些東西的收益率達到高個位數或低兩位數範圍，否則我們不會很快扣動扳機。我們對明年的成長途徑感到滿意。所以我認為謹慎的做法是靜觀其變，但這是一個你不想錯過的巨大機會。

Okay. And then last one for me. I think you guys touched a little bit on some of the re-tenanting and redevelopment plays in the portfolio. It sounded like that the Durham Bed Bath is just going to be re-tenanted, but the Virginia Beach one in terms of narrowing the options, is that is -- a whole scale redevelopment some other use for that space, whether it be apartments or something else still on the table there? Or is that just basically a re-tenant and it's a question of whether or not it's broken up into multiple parcel -- multiple tenants or just one at that size, et cetera?

好的。然後是我的最後一張。我認為你們對投資組合中的一些重新租賃和重建活動有所了解。聽起來達勒姆床浴場將被重新租用，但弗吉尼亞海灘的一個在縮小選擇範圍方面是——大規模的重建，將該空間用於其他用途，無論是公寓還是公寓。桌子上還有其他東西嗎？或者這基本上只是一個重新租戶，問題是它是否被分成多個地塊——多個租戶還是只有一個這樣大小的租戶，等等？

Yes, two different things there. As you know, part of that -- the total parcel of 10 acres with the Bed Bath piece being roughly half or a little bit over half of that, the other being Regal Cinema. Regal Cinema continues to go -- and if that -- at some point, if that becomes available, that would probably be a multifamily portion. But right now, the program is on the Bed Bath site, and we're dealing with a few high-end new-to-market retailers that we'd like hope to be announcing in the next quarter or so. But that will be essentially retail. And whether or not there's any reuse of the box that's there remains to be seen.

是的，有兩個不同的東西。如你所知，其中一部分——總面積 10 英畝，其中床浴區大約佔其中的一半或略多一點，另一個是富豪電影院。富豪影院繼續運作——如果是這樣的話——在某個時候，如果可用的話，那可能會是多戶家庭的部分。但目前，該計劃已在 Bed Bath 網站上發布，我們正在與一些新進入市場的高端零售商合作，希望在下個季度左右宣布這些零售商的合作。但這本質上是零售。那裡的盒子是否會重複使用還有待觀察。

Okay. And what about the movie theater outparcel that you were thinking about doing multifamily on? I think is it James Madison? Is that still on the drawing board? Is that just going to be a movie theater? How is that -- what are you guys thinking about that at the moment?

好的。那麼您考慮建造多戶家庭的電影院呢？我想是詹姆斯麥迪遜吧？那還在繪圖板上嗎？那隻是電影院嗎？怎麼樣──你們現在在想什麼？

Well, again, Regal is going to take advantage of their remaining options. They seem to be doing just fine. As far as the multifamily piece of that, it's victim right now to what we were just talking about, Rob, and that return doesn't justify us throwing another $40 million or $50 million out there. So we'll most probably just sit back and collect coupons for the foreseeable future.

好吧，富豪將再次利用他們剩下的選擇。他們似乎做得很好。就多戶家庭而言，它現在是我們剛才所說的受害者，羅布，這種回報並不能證明我們有理由再投入 4000 萬或 5000 萬美元。因此，在可預見的未來，我們很可能只會坐下來收集優惠券。

Okay. And then I guess, I lied, one -- just one other one. On the mezz portfolio, anything sort of penciling out? And where do returns need to be for you guys to start or to fund a completely new project there with your partners today?

好的。然後我想，我撒謊了，一個——只是另一個。在夾層投資組合上，有什麼需要注意的嗎？你們今天需要在哪裡獲得回報才能與合作夥伴一起啟動或資助一個全新的計畫？

So again, as you might expect, that bar has been raised as well. And so with our partners unless they have healthy, high single-digit returns that we see in their pro forma that gives us the room to deploy our equity. And ultimately, if we can bring the project on balance sheet then they are going to get funded. Now put that in the same boat with what I was saying earlier that there is a ton of opportunities out there. It's just with rates where they are and costs where they are, the vast majority of them need to stay on the drawing board and not in our portfolio.

因此，正如您所預料的那樣，該標準也已提高。我們的合作夥伴也是如此，除非他們擁有我們在準備考試中看到的健康、高個位數的回報，從而為我們提供了部署股權的空間。最終，如果我們能夠將該項目納入資產負債表，那麼他們就會獲得資金。現在，將其與我之前所說的「存在大量機會」放在一起。只是隨著利率和成本的變化，絕大多數都需要留在繪圖板上，而不是在我們的投資組合中。

The next question comes from Peter Abramowitz from Jefferies.

下一個問題來自 Jefferies 的 Peter Abramowitz。

I appreciate the comments on potentially the yield you're hoping for on multifamily developments. I guess, I want to ask a similar question on the retail side, if you're seeing anything in the acquisition market and what kind of yields or IRRs would entice you right now and then whether or not you're seeing those?

我很欣賞您對多戶住宅開發的潛在收益的評論。我想，我想在零售方面問一個類似的問題，如果你在收購市場上看到任何東西，什麼樣的收益率或內部收益率現在會吸引你，然後你是否看到這些？

Peter. So cap rates have widened a bit but the kinds of retail that we'd be willing to transact on are essentially high credit and well-located grocery stores. Those cap rates have moved somewhat. But as you know, unfortunately, our cost of capital has moved materially as well. So there is probably a little bit of spread to be gotten if we were to transact there. But right now, we're more interested in capital preservation of making sure that we can continue some growth internally as well as raising the dividend and not marginally looking at new acquisitions.

彼得.因此，資本化率有所擴大，但我們願意進行交易的零售類型本質上是高信用且位置優越的雜貨店。這些上限利率有所變動。但不幸的是，如您所知，我們的資本成本也發生了重大變化。因此，如果我們在那裡進行交易，可能會產生一點點差價。但現在，我們更感興趣的是資本保值，以確保我們能夠繼續內部成長以及提高股息，而不是邊際考慮新的收購。

Again, much like on the development side, if something appears in one of our target markets that's just too good to pass up or has a redevelopment opportunity or additional value add we can do then you may see us transact. But as far as real solid grocery-anchored shopping centers of the sort that we already own, I don't think you'll see us be a player.

再說一次，就像在開發方面一樣，如果我們的目標市場之一出現了一些好得不容錯過的東西，或者有重新開發的機會或我們可以做的額外增值，那麼您可能會看到我們進行交易。但就我們已經擁有的那種以雜貨為主的真正實體購物中心而言，我認為您不會看到我們成為參與者。

Got it. And then you've talked about potentially monetizing the T. Rowe headquarters. Just wondering if you've seen any relevant transaction comps in any of your markets for that type of office product and kind of how it impacts your thinking in terms of potentially doing a deal there?

知道了。然後您談到了將 T. Rowe 總部貨幣化的可能性。只是想知道您是否在您的任何市場中看到過此類辦公產品的相關交易比較，以及它對您在那裡可能進行交易的想法有何影響？

Again, thanks for the question. It's interesting. There aren't any transactions of trophy quality building that we see out there. I'd say there aren't any. Maybe there's 1 or 2 somewhere. But largely, anybody with the kind of assets that those represent is not trying to transact right now. It's absolutely the worst time. So for us, the -- obviously, the fond hope is that 18 months from now, things have normalized a bit to where you can get real value out of that type of asset. In alternative, I don't discount the idea that should our cost of capital go in the right direction and the equity price go in the right direction, we may well bring those things on balance sheet. But right now, we wanted to make sure everybody understood, if push comes to shove, that's a great assets to bring cash back on the balance sheet.

再次感謝您的提問。這真有趣。我們沒有看到任何獎杯品質建設的交易。我會說沒有。也許某個地方有 1 或 2 個。但在很大程度上，任何擁有這些資產的人現在都不會嘗試進行交易。這絕對是最糟糕的時候。因此，對我們來說，顯然，我們熱切地希望從現在起 18 個月後，情況會正常化，您可以從此類資產中獲得真正的價值。另一方面，我並不否認這樣的想法：如果我們的資本成本朝著正確的方向發展並且股價朝著正確的方向發展，我們很可能會將這些東西納入資產負債表中。但現在，我們希望確保每個人都明白，如果到了緊要關頭，這是將現金帶回資產負債表的巨大資產。

Got it. And then last one for me. You've had some elevated growth on the real estate tax side, particularly multifamily, a little bit on office as well this year. Are you contesting any of those that could potentially be a tailwind for expenses in future quarters? And just kind of how should we think about growth in real estate taxes generally?

知道了。然後是我的最後一張。今年，房地產稅方面出現了一些高速成長，尤其是多戶住宅，辦公室稅也有一些成長。您是否對那些可能成為未來幾季支出的推動因素提出異議？我們該如何看待房地產稅的成長？

I think the industry should be thinking about that generally. But yes, we are contesting nearly all of them. I mean it is our practice to assess them one by one and try to make sense of where we should apply our efforts. We have a good third-party vendor that assist us in that regard, and we've had a lot of success there. So obviously, municipalities are different up and down the Mideast, Mid-Atlantic coast, down throughout the Southeast. But yes, we push back on those often and early and have seen relatively good success there. So we plan to continue to do that. Obviously, we can't control the macro environment and we -- it's something to watch for, it's something we're focused on.

我認為業界應該普遍考慮這一點。但是，是的，我們幾乎正在與所有這些人競爭。我的意思是，我們的做法是一一評估它們，並試圖弄清楚我們應該在哪裡努力。我們有一個優秀的第三方供應商在這方面為我們提供幫助，並且我們在這方面取得了巨大的成功。很明顯，中東、大西洋中部海岸和整個東南部的城市是不同的。但是，是的，我們經常儘早地抵制這些做法，並在那裡看到了相對較好的成功。所以我們計劃繼續這樣做。顯然，我們無法控制宏觀環境，而我們──這是值得關注的事情，這是我們關注的事情。

Our next question comes from Wes Golladay from Baird.

我們的下一個問題來自貝爾德 (Baird) 的韋斯·戈拉迪 (Wes Golladay)。

Can you talk about the leasing environment in multifamily. A lot of the peers had some tough quarters and tough outlooks, whether it's supply pressure or fraud. Are you seeing any of that?

能談談多戶住宅的租賃環境嗎？許多同行都經歷了一些艱難的季度和前景，無論是供應壓力還是詐欺。你看到這些了嗎？

I'm going to let Shawn answer that specifically. But we are seeing things normalize. People got used to double-digit growth quarter-over-quarter for a while there. We're seeing it normalize back into the mid-single digits. Shawn, are you can be specifics on that?

這個問題我就讓肖恩來具體回答一下吧。但我們看到事情正在正常化。人們已經習慣了季度環比兩位數的成長。我們看到它正常化回中個位數。 Shawn，你能具體說明一下嗎？

Yes. I think Lou hit the nail on the head. We've been saying for multiple quarters now. We think things go back to the mid-single digits, which they are and that's what we forecast and that's where we sit. Our trade-outs in quarter 3 were around 4% across the board, which is good. It's about where we thought we would be. And I think for us, our view is let's maintain high-quality trophy assets, let's be in the best locations, as you know, that's part of our formula, and there's a flight-to-quality happening, especially when the pressure turns on. I think, generally speaking, we see strength continued, again, maybe not double-digit growth, but we're feeling good about our location, we're feeling good about our product, and our team is doing a heck of a job managing set of products. So we're comfortable with what we've underwritten.

是的。我認為盧一針見血。我們已經說了好幾個季度了。我們認為情況會回到中個位數，這就是我們的預測，這就是我們的立場。我們在第三季的整體換取率約為 4%，這很好。這是關於我們認為我們會在哪裡。我認為對我們來說，我們的觀點是讓我們保持高品質的獎杯資產，讓我們處於最好的位置，正如你所知，這是我們公式的一部分，並且正在發生向品質的轉變，尤其是當壓力增大時。我認為，總的來說，我們再次看到實力持續增長，也許不是兩位數的增長，但我們對我們的位置感覺良好，我們對我們的產品感覺良好，而且我們的團隊正在做非常出色的管理工作一套產品。所以我們對我們承保的內容感到滿意。

Yes, I think a lot of people would take growth at this point. Turning to the 11 tenants that are on the watch list, is there any way to quantify that as a percentage of ABR?

是的，我想很多人都會在這一點上尋求成長。至於觀察名單上的 11 個租戶，有什麼方法可以量化其占 ABR 的百分比嗎？

I'm glad you asked the question. We did some work on that, hoping someone would ask that question. So Lou talked about WeWork, let's talk about it net of WeWork because that's a separate situation. Essentially, the total ABR is about $2.5 million. So for us, that's obviously over the 11 tenants, we can handle that. We can manage that. We'll see some successes there. And certainly, some folks may not make it. However, as I indicated, a significant majority of those spaces, at least the vacant spaces have the opportunity to kind of take up that slack. So we're excited about the activity, both in the retail and the office, frankly, in our submarkets, and we feel good about being able to stabilize that if, in fact, it becomes an issue.

我很高興你問了這個問題。我們對此做了一些工作，希望有人會問這個問題。 Lou 談到了 WeWork，讓我們談談 WeWork 以外的網絡，因為這是一個單獨的情況。基本上，ABR 總額約為 250 萬美元。所以對我們來說，這顯然超過了 11 個租戶，我們可以處理這個問題。我們可以做到這一點。我們將在那裡看到一些成功。當然，有些人可能無法成功。然而，正如我所指出的，這些空間中的絕大多數，至少是空置空間有機會填補這一空缺。因此，坦白說，我們對零售和辦公室的活動感到興奮，在我們的子市場中，如果事實上這成為一個問題，我們對能夠穩定這項活動感到很高興。

And maybe just a little bit more context, when you look at the 11 tenants on the watch list, is that about normal for the portfolio, I guess, adjusted for the current size versus the prior years? Is it worse? Or is it better? Just some context on you are having 11 on the watch list.

也許更多一點背景信息，當你查看觀察名單上的 11 個租戶時，我想，根據當前規模與前幾年的規模進行調整，這對投資組合來說是正常的嗎？是不是更糟了？或者更好？只是一些關於您在觀察名單上有 11 個的背景資訊。

I think we're pretty consistent with where we have been over the past few years. Certainly, folks come and go. Obviously, we took the Bed Bath numbers out of our numbers, it's already removed. So we're looking at tenants that on an individual basis or not consequential. But yes, I think in terms of the number, in terms of the size and the magnitude, that's about where we are. And frankly, that's about where we should be.

我認為我們與過去幾年的情況非常一致。當然，人來人往。顯然，我們從我們的號碼中刪除了床浴號碼，它已經被刪除了。因此，我們會根據個人情況或無關緊要的情況來考慮租戶。但是，是的，我認為就數量、規模和規模而言，這就是我們所處的位置。坦白說，這就是我們應該做的事情。

Yes. Wesley, just to follow up on that. The total value there is in line with what we reserve for bad debt on an annual basis. So it's really not an issue there. And as I said much earlier, we're going to make the right real estate decision. We're just not interested in folks limping along at paying half rent. So hopefully, things will look up for those tenants. And if not, we'll be moving on.

是的。韋斯利，我只是想跟進一下。總價值與我們每年的壞帳準備金一致。所以這確實不是問題。正如我之前所說，我們將做出正確的房地產決策。我們只是對那些只付一半租金而一瘸一拐地走下去的人不感興趣。希望這些租戶的情況會有所改善。如果沒有，我們將繼續前進。

Our next question comes from (inaudible) from Bank of America.

我們的下一個問題來自（聽不清楚）美國銀行。

Just one follow-up on an earlier question. Can you expand a bit more on the new versus existing renter dynamics in your multifamily portfolio? And was the decline in occupancy this quarter more seasonal in nature? Or are you starting to see any changes in behavior there?

只是對先前問題的一個後續行動。您能否詳細介紹一下多戶型投資組合中新租戶與現有租戶的動態對比？本季入住率下降是否更具季節性？或者您開始看到那裡的行為有任何變化嗎？

Yes, (inaudible), again, I'll let Shawn answer that specifically, but I do want to mention and part of the other side of the coin, we talk about our 98%, 99% occupancy across the portfolio. We fully expect that, over time, that we'll be back in the mid-90s that those kinds of rates just aren't sustainable just because of the inflow and outflow of tenants. So in terms of the decrease in occupancy in multifamily, somewhat is seasonal. But at the same time, we are not we are not programming in 98% leased for next year. We believe that things will go back to the center line. And again, of course, the trade-off is how much we were able to boost rents versus keeping the higher occupancy. Shawn?

是的，（聽不清楚），我再次讓肖恩具體回答這個問題，但我確實想提一下硬幣的另一面，我們談論我們整個投資組合的 98%、99% 的入住率。我們完全預計，隨著時間的推移，我們將回到 90 年代中期，僅僅因為租戶的流入和流出，這種利率就無法持續。因此，就多戶住宅入住率的下降而言，某種程度上是季節性的。但同時，我們也沒有計劃明年租賃 98% 的項目。我們相信事情會回到中心線。當然，權衡是我們能夠在多大程度上提高租金與維持較高的入住率。肖恩？

Yes. I think to add to that, the income is up, right, on an aggregate basis. And to Lou's point, it's very difficult to maintain 98%, 97% in some extend it's inefficient in some ways to maintain that occupancy. We use -- we take the emotion out and we use rent optimization software. And essentially, we are driving to the mid-90s in terms of occupancy, obviously, with an eye toward enhancing the NOI.

是的。我認為除此之外，整體收入也有所增加。對於 Lou 來說，要維持 98%、97% 的入住率非常困難，在某種程度上，維持這種入住率在某些方面是低效的。我們使用－我們消除情緒，我們使用租金優化軟體。從本質上講，我們的入住率顯然正在向 90 年代中期邁進，並專注於提高 NOI。

We're seeing the NOI continue to climb. The occupancy did dip. We would love to have that extra 1% back. We're looking for ways to do that. But I think we're pretty healthy now, and there's the supply/demand kind of balance to ensure that we're running the property as efficiently and frankly, as profitably as we can. So I think we feel comfortable here. We haven't really seen a dynamic shift other than a market macro. But again, you heard me say a second ago, we're nearly 4% on trade out still in the last quarter, and that's above where we were in the comparative quarter previously. So we feel good about the continued growth.

我們看到 NOI 繼續攀升。入住率確實下降了。我們很樂意獲得額外的 1% 回饋。我們正在尋找方法來做到這一點。但我認為我們現在相當健康，並且存在供需平衡，以確保我們盡可能高效、坦率地運營該物業，並儘可能盈利。所以我認為我們在這裡感覺很舒服。除了市場宏觀之外，我們還沒有真正看到動態變化。但同樣，你剛才聽到我說過，上個季度我們的交易率仍然接近 4%，這高於之前的比較季度的水平。因此，我們對持續成長感到滿意。

Actually, just one follow-up on that point. You said you're using AI to help drive the pricing. I guess of that platform, how much of the like inputs are you -- like do you have control over? Or is this outsourced?

實際上，只是針對這一點的一個後續行動。你說你正在使用人工智慧來幫助推動定價。我想在這個平台上，你有多少類似的輸入——例如你能控制嗎？還是這是外包的？

We use a third-party platform. We can control kind of our desired occupancy level, and it uses market inputs that we do not control that are organic, what's happening in the broader market, broader submarket to be more specific to kind of enhance where does the pricing need to be to hit this occupancy target. We can certainly ratchet that up, but I would imagine there's going to be a trade-off at some inflection point in this current market environment between what rent you can achieve and what occupancy you can achieve. And we feel like in the mid-90s is where we want to shoot for. We do run sensitivity on that. We're taking a look at that now and trying to understand what's the best kind of mousetrap -- how to best set the mousetrap, maybe it's a better way to say it.

我們使用第三方平台。我們可以控制我們想要的入住率水平，它使用我們無法控制的有機市場輸入，更廣泛的市場、更廣泛的子市場中正在發生的事情，以更具體地提高定價需要達到的水平這個入住率目標。我們當然可以提高這一點，但我想在當前市場環境的某個轉折點上，您可以實現的租金和入住率之間將需要進行權衡。我們覺得 90 年代中期是我們想要努力的目標。我們確實對此非常敏感。我們現在正在研究這個問題，並試圖了解什麼是最好的捕鼠器——如何最好地設置捕鼠器，也許這是一個更好的說法。

There appear to be no further questions. I'll return the conference back to the speakers.

似乎沒有其他問題了。我將把會議交還給發言人。

Thanks very much for your time and attention this morning. We will -- we hope to have further announcements between now and the end of the year, and everybody, have a great day. Take care.

非常感謝您今天早上的時間和關注。我們希望從現在到年底之間能有進一步的公告，祝大家有個愉快的一天。小心。

This does conclude today's conference call. Thank you for participating. You may all now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。你們現在可以斷開線路了。