Armada Hoffler Properties Inc (AHH) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler Third Quarter 2024 Earnings Conference Call. (Operator Instructions) This call is being recorded on Tuesday, November 5, 2024.

早安，女士們、先生們，歡迎參加 Armada Hoffler 2024 年第三季財報電話會議。（操作員說明）此通話錄音時間為 2024 年 11 月 5 日星期二。

I would now like to turn the call over to Chelsea Forrest, Vice President of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係副總裁 Chelsea Forrest。請繼續。

Good morning, and thank you for joining Armada Hoffler’s third quarter 2024 earnings conference call and webcast. On the call this morning in addition to myself is Louis Haddad, CEO; Matthew Barnes-Smith, CFO; and Shawn Tibbetts, President, and COO.

早安，感謝您參加 Armada Hoffler 的 2024 年第三季財報電話會議和網路廣播。今天早上，除了我本人之外，參加電話會議的還有執行長路易斯哈達德 (Louis Haddad)。馬修‧巴恩斯‧史密斯，財務長；以及總裁兼營運長肖恩·蒂貝茨 (Shawn Tibbetts)。

The press release announcing our second quarter earnings along with our supplemental package were distributed yesterday afternoon. A replay of this call will be available shortly after the conclusion of the call through December 30, 2024. 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 here and are as of today, November 5, 2024, and will not be updated subsequent to the initial earnings call.

昨天下午發布了宣布我們第二季收益以及補充方案的新聞稿。通話結束後不久即可重播，截止時間為 2024 年 12 月 30 日。收益新聞稿中提供了觀看重播的號碼。對於那些收聽重播本簡報的人，我們提醒您，此處發表的言論截至今天（2024 年 11 月 5 日），並且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 guidance and outlook.

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相關的陳述活動，以及對我們的指導和展望的評論。

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.

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。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。

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 yesterday and the risk factors disclosed in the documents we have filed with or furnished to the SEC.

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昨天分發的新聞稿中披露的前瞻性聲明以及我們已提交或提供給的文件中披露的風險因素美國證券交易委員會。

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@armadahoefler.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@armadahoefler.com 上取得。

I'll now turn the call over to Louis.

我現在將電話轉給路易斯。

Good morning, everyone. Thank you for joining us today. I want to take a moment to update you on the progress of our secession plan that was announced nearly a year ago. The transition to Shawn as the incoming CEO is on schedule and nearly complete. Early next year I will officially pass the torch and I look forward to supporting Shawn, Matt, and the rest of the team as Executive Chairman. This will be my final earnings call as CEO and I couldn't be more excited for the future of Armada Hoffler.

大家早安。感謝您今天加入我們。我想花點時間向大家介紹近一年前宣布的分裂計畫的最新進展。肖恩 (Shawn) 擔任新任執行長的交接工作正在按計劃進行，並且即將完成。明年初我將正式傳遞火炬，我期待以執行主席的身份支持肖恩、馬特和團隊的其他成員。這將是我作為執行長的最後一次財報電話會議，我對 Armada Hoffler 的未來感到無比興奮。

This transition is more than a new leader at the helm. The company has been moving towards a stronger balance sheet, higher emphasis on property NOI growth and less reliance on fee income than at any time since our IPO. I want to thank our shareholders and most importantly the Armada Hoeffler team for their continuous dedication to our company. I look forward to sharing our results today and discussing the bright path ahead.

這次轉變不僅僅是新領導人掌舵。自首次公開募股以來，該公司一直在朝著更強大的資產負債表、更加重視房地產 NOI 成長以及減少對費用收入的依賴邁進。我要感謝我們的股東，最重要的是感謝 Armada Hoeffler 團隊對我們公司的持續奉獻。我期待今天分享我們的成果並討論未來的光明道路。

I will now turn the call over to Shawn.

我現在會把電話轉給肖恩。

Thank you, Louis, for the encouraging comments on the transition progress as well as the confidence you and the board have placed in me and the Armada Hoefler team. I look forward to this next chapter and leading Armada Hefler to achieve our strategic long-term objectives.

路易斯，謝謝您對過渡進展的鼓舞人心的評論，以及您和董事會對我和 Armada Hoefler 團隊的信心。我期待下一章並領導赫夫勒無敵艦隊實現我們的長期戰略目標。

Our team will continue to build upon the foundation you have established while growing responsibly, maintaining agility to meet the market's demands, and leveraging core company values to enhance shareholder returns for years to come. Your leadership, coupled with Dan's guidance has served as a bellwether for the company's success and we appreciate your investment in the company.

我們的團隊將繼續在您建立的基礎上繼續發展，同時負責任地發展，保持敏捷性以滿足市場需求，並利用公司核心價值來提高未來幾年的股東回報。您的領導者加上 Dan 的指導成為公司成功的風向標，我們感謝您對公司的投資。

Thank you to everyone joining us today to discuss the impressive results our team achieved during the third quarter, our asset performance and business unit results. We will also, provide some thoughts on the remainder of the year and beyond. I would like to start by touching on our plan for growth for the next few years.

感謝今天與我們一起討論我們團隊在第三季度取得的令人印象深刻的業績、我們的資產績效和業務部門業績的大家。我們也將就今年剩餘時間及以後的情況提供一些想法。我想先談談我們未來幾年的成長計劃。

The first step in our plan was to strengthen the company's balance sheet and simultaneously prepare for growth in our property income, specifically, in the multifamily segment. In September, we successfully executed a $108 million common equity offering that reduced leverage and positioned us to add approximately 900 multifamily units across four high quality assets, resulting in a 37% increase in door-count.

我們計劃的第一步是加強公司的資產負債表，同時為財產收入的成長做好準備，特別是在多戶住宅領域。9 月，我們成功執行了 1.08 億美元的普通股發行，降低了槓桿率，使我們能夠在四項優質資產中增加約 900 個多戶單元，從而使門數增加 37%。

The goal going forward is to continuously improve portfolio quality while bringing online several important development assets which we believe will significantly add to our NOI, while also, incrementally improving the balance sheet.

未來的目標是不斷提高投資組合質量，同時上線幾個重要的開發資產，我們相信這些資產將顯著增加我們的 NOI，同時逐步改善資產負債表。

In addition to delivering these key development projects, we will also, look to opportunistically add multifamily and select retail assets located in secondary high growth southeastern markets. The second step in our plan is an upgraded debt profile focused on lower leverage and an improved cost of capital.

除了交付這些關鍵開發項目外，我們還將尋求機會增加位於二級高成長東南市場的多戶住宅和精選零售資產。我們計劃的第二步是升級債務狀況，重點是降低槓桿率和改善資本成本。

Real estate is all about spread investing and appropriate leverage in the more stabilized rate environment that we expect going forward, we will strive to enhance the quality of our debt with an eye towards longer term fixed rate instruments.

房地產就是在我們預期未來更加穩定的利率環境中進行利差投資和適當的槓桿，我們將努力提高我們的債務質量，並著眼於長期固定利率工具。

As you can see from the release, we had another strong performance for quarter three, 2024 at $0.35 normalized FFO per diluted shares. Our best-in-class portfolio features minimal lease maturities for the next few years. We are currently experiencing minor development delays at Harbor Point in Baltimore and as a result we now expect both projects to be delivered in early 2025. The most notable impact relates to Allied, which we now expect will deliver in early 2025.

正如您從新聞稿中看到的那樣，我們在 2024 年第三季再次表現強勁，每股攤薄後的正常化 FFO 為 0.35 美元。我們一流的投資組合在未來幾年內有最低的租賃期限。目前，我們在巴爾的摩 Harbour Point 的開發遇到了輕微的延遲，因此我們現在預計這兩個項目都將於 2025 年初交付。最顯著的影響與 Allied 相關，我們現在預計將在 2025 年初實現。

As a result, and as Matt will mention, interest expense through the end of this year is anticipated to be lower than planned due to continued capitalization resulting in higher-than-expected bottom line earnings for the fourth quarter. With initial delivery anticipated for early 2025, the 18 month to 24 month lease-up period to stabilization is expected to begin during the most challenging time of the year for apartment leasing, creating additional headwinds for earnings growth in 2025.

因此，正如馬特將提到的，由於持續的資本化導致第四季度的利潤高於預期，預計到今年年底的利息支出將低於計劃。由於預計首次交付將於 2025 年初交付，預計 18 至 24 個月的穩定租賃期預計將在一年中公寓租賃最具挑戰性的時期開始，這將為 2025 年的盈利增長帶來額外的阻力。

As we have mentioned, we intend to lease the asset at a controlled and balanced pace in order to maintain a market rate floor for the submarket and thereby avoid eroding our current position in that market. This, coupled with the one-time events mentioned on the last call is why we are reiterating our expectation to conclude this year at the high end, narrowing our range to the high end of Guidance.

正如我們所提到的，我們打算以受控和平衡的速度租賃資產，以維持子市場的市場利率下限，從而避免侵蝕我們目前在該市場的地位。這一點，再加上上次電話會議中提到的一次性事件，就是我們重申今年以高端結束的預期，將我們的範圍縮小到指引高端的原因。

Let me remind you that we are in the midst of seeking to deliver several large trophy assets that sit at the high-end of their respective submarkets. Although development execution is inherently complicated, the degree of value creation is nothing short of impressive. At stabilization, we will have completed two major additions to the Mid Atlantic region's highest quality development location, changing the skyline of a city with the finest properties in each class.

讓我提醒您，我們正在尋求交付位於各自子市場高端的幾項大型獎杯資產。儘管開發執行本質上很複雜，但價值創造的程度卻令人印象深刻。穩定後，我們將完成中大西洋地區最高品質開發地點的兩項主要擴建，從而改變這座城市的天際線，擁有各個級別的最佳房產。

We are focused on optimizing portfolio performance and pursuing disciplined capital allocation opportunities. While there are always challenges in delivering large developments or competing with new supply in multifamily, the operating environment across our sectors remains strong.

我們專注於優化投資組合績效並尋求嚴格的資本配置機會。儘管在交付大型開發案或與多戶住宅的新供應競爭方面始終存在挑戰，但我們各行業的營運環境仍然強勁。

We reported robust occupancy of 95%. As I said last quarter, consistently high occupancy and NOI on target are a result of strong leasing and our team's laser focus on optimizing the portfolio performance. Those efforts are bolstered by properties that are the newest and best assets which are strategically positioned in attractive growth markets, whether in a mixed-use setting or otherwise, our properties and communities offer top-tier amenities that attract investment grade tenants who select them over the competition.

我們報告的入住率高達 95%。正如我上季度所說，持續的高入住率和目標 NOI 是強勁租賃和我們團隊專注於優化投資組合績效的結果。這些努力得到了最新、最好資產的房地產的支持，這些資產策略性地定位於有吸引力的成長市場，無論是在混合用途環境還是其他環境中，我們的房地產和社區都提供頂級的設施，吸引投資等級租戶選擇它們比賽。

Speaking of mixed use, on October 24, I was honoured to cut the ribbon at Southern Post alongside the CEO of Vestas, our anchor tenant and leadership from the City of Roswell. Over 500 people joined us to tour and experience the asset, engage with the commercial tenants, and celebrate our newest trophy mixed use asset in Roswell, Georgia.

說到混合用途，10 月 24 日，我很榮幸與維斯塔斯首席執行官、我們的主要租戶和羅斯威爾市的領導一起在《南方郵報》剪彩。超過 500 人加入我們參觀和體驗該資產，與商業租戶互動，並慶祝我們在喬治亞州羅斯威爾的最新獎杯混合用途資產。

My remarks at the event emphasize that Southern Post truly embodies the Live, Work, Play culture that defines the high-end Roswell market. The project is receiving an overwhelmingly positive response from the business community and I couldn't be more proud to represent the company as we achieved this exciting milestone.

我在活動中的演講強調，《南方郵報》真正體現了定義高端羅斯威爾市場的生活、工作、娛樂文化。該專案得到了商界的壓倒性積極響應，在我們實現這一令人興奮的里程碑時，我非常自豪能夠代表公司。

Southern Post once again proves our thesis for a mixed-use strategy. High quality ecosystem situated in a market with some of the best demographic and growth fundamentals throughout the Southeast results in a consistently high performance.

南方郵報再次證明了我們關於混合用途策略的論點。高品質的生態系統位於整個東南部擁有最佳人口和成長基本面的市場中，從而帶來了持續的高性能。

Let's quickly walk through the fundamentals across the property sectors. Consistent leasing, releasing and rent growth is the key to value creation. In the retail and office sectors, our commercial properties maintained 95.6% occupancy while our teams executed 37 commercial leases for a total of approximately 275,000 square feet at spreads of 16.7% on a GAAP basis.

讓我們快速瀏覽一下房地產行業的基本面。持續的租賃、釋放和租金成長是價值創造的關鍵。在零售和辦公室領域，我們的商業物業保持了 95.6% 的入住率，而我們的團隊執行了 37 個商業租賃，總面積約為 275,000 平方英尺，按 GAAP 基準計算的價差為 16.7%。

Our high-quality office product remains well leased and in high demand at 95% occupied with significant opportunities to add to the income stream in the coming weeks and months. The stabilized assets within the portfolio continue to exhibit strength while the tenant credit profile remains strong.

我們的高品質辦公產品仍然出租良好，需求旺盛，入住率為 95%，在未來幾週和幾個月內有很大機會增加收入流。投資組合中的穩定資產持續表現強勁，而租戶信用狀況依然強勁。

As we have proven over the past few years, our office product continues to perform well with the occupancy currently sitting at 94.4%. Remember that 95% of our office ABR sits in mixed use communities. These ecosystems provide locations for employers to attract their workforce and future talent resulting in demand for the trophy space.

正如我們過去幾年所證明的那樣，我們的辦公室產品繼續表現良好，目前入住率為 94.4%。請記住，我們 95% 的辦公室 ABR 位於混合用途社區。這些生態系統為雇主提供了吸引勞動力和未來人才的場所，從而產生了對獎杯空間的需求。

I'll conclude the office comments by saying that we are and have been at 95% occupancy with minimal vacancy and near term rollover, while others are celebrating incrementally, moving toward the high 80s and low 90s. Our biggest issue in the office portfolio is accommodating growing tenant demand for expansion space with limited inventory. Our retail portfolio had a strong performance with 96.2% occupancy.

我將在辦公室評論的最後說，我們的入住率現在和過去一直保持在95%，空置率極低，並且近期會展期，而其他人則在逐步慶祝，朝著80 多歲和90 多歲的低點邁進。我們辦公大樓投資組合中最大的問題是以有限的庫存來滿足租戶對擴展空間不斷增長的需求。我們的零售投資組合表現強勁，入住率為 96.2%。

We executed new leases, extensions or options covering over 193,000 square feet. Regarding the two Bed, Bath & Beyond Vacancies in the portfolio, I am pleased to report that as of today we have executed a lease with a national retailer to fully backfill one and are negotiating leases to substantially backfill the other. I look forward to sharing additional details in the coming weeks.

我們執行了新的租賃、延期或選擇，面積超過 193,000 平方英尺。關於組合中的兩個床、浴室及其他空缺，我很高興地報告，截至今天，我們已與一家全國性零售商簽署了一項租約，以完全填補其中一個空缺，並正在就租約進行談判，以大幅填補另一個空缺。我期待在未來幾週內分享更多細節。

The releasing spreads were 13.1% and same-store sales were essentially flat for the quarter. Overall, we are seeing strong demand from retail tenants looking for space in a supply constrained market. That said, we have not lost sight of the renewals and releasing required to remain at this level of occupancy. The multifamily portfolio continues to operate well at 95.3% occupancy despite facing competitive headwinds from increased supply as well as certain asset specific operational challenges.

該季度的發行價差為 13.1%，同店銷售額基本持平。總體而言，我們看到零售租戶在供應有限的市場中尋找空間的強勁需求。也就是說，我們並沒有忽視維持此入住率水準所需的續訂和釋放。儘管面臨供應增加帶來的競爭阻力以及某些資產特定的營運挑戰，多戶型投資組合仍以 95.3% 的入住率維持良好營運。

We see these as short-term issues based on the superior location of our assets and our historical successes and performance in the broader Southeast multifamily market. Otherwise, the rent growth in our markets such as Baltimore and Virginia Beach continue to create lift and we stand by our thesis. Well located amenitized and high-quality assets outperform the competition within the submarkets.

基於我們資產的優越位置以及我們在更廣泛的東南多戶市場的歷史成功和表現，我們將這些視為短期問題。除此之外，巴爾的摩和維吉尼亞海灘等市場的租金成長繼續創造升力，我們堅持我們的論點。位置優越、設施齊全、優質的資產在子市場的競爭中脫穎而出。

We receive questions on asset recycling as a means of raising capital and would like to take a minute to address our posture on strategic capital allocation. To be clear, we constantly analyse all options available for the best possible capital allocation decisions. In today's dynamic real estate market, disciplined investing is essential for optimizing portfolio performance and driving long term value creation.

我們收到了有關資產回收作為籌集資金手段的問題，並想花一點時間來討論我們在策略資本配置方面的立場。需要明確的是，我們不斷分析所有可用的選項，以做出最佳的資本配置決策。在當今充滿活力的房地產市場中，嚴格的投資對於優化投資組合績效和推動長期價值創造至關重要。

Given increased investor demand for stable retail assets, opportunities to accretively recycle capital into higher growth assets within the retail segment or reallocate capital out of retail and into multifamily are more possible today than they have been in recent years.

鑑於投資者對穩定零售資產的需求不斷增加，與近年來相比，如今更有可能將資本逐步回收到零售領域內的高成長資產中，或將資本從零售業重新分配到多戶型資產中。

That said, we ultimately need to review all options in order to grow the firm and accomplish our long-term objectives mentioned a few minutes ago. Increasing the quality of the income stream and balance sheet, but also, achieving the incremental reduction in our relative cost of capital as we achieve scale.

也就是說，我們最終需要審查所有選項，以發展公司並實現幾分鐘前提到的長期目標。提高收入流和資產負債表的質量，同時隨著規模的擴大，逐步降低相對資本成本。

Before we conclude, I want to take a moment to express my gratitude to the Armada Hoeffler team. Your hard work, dedication and resilience have been pivotal to the company and its success. Thank you for your commitment to excellence. I'm honoured to work alongside each of you as we move forward into the next phase of Armada Hoffler.

在結束之前，我想花點時間向 Armada Hoeffler 團隊表示感謝。您的辛勤工作、奉獻精神和韌性對公司及其成功至關重要。感謝您對卓越的承諾。我很榮幸能與你們每個人一起工作，讓我們進入「霍夫勒無敵艦隊」的下一階段。

I want to say thank you to all of our investors, pre-existing and new, for your investment and confidence in our company. I will now turn the call to Matt.

我想對我們所有的現有投資者和新投資者表示感謝，感謝你們對我們公司的投資和信心。我現在將電話轉給馬特。

Good morning and thank you Shawn. For the third quarter of 2024, we reported normalized FFO of $0.35 per diluted share and FFO of $0.14 per diluted share. These results are in line with our expectations. This quarter we announced that Stifel Financial Corp.

早安，謝謝肖恩。對於 2024 年第三季度，我們報告的標準化 FFO 為每股稀釋每股 0.35 美元，FFO 為每股稀釋每股 0.14 美元。這些結果符合我們的預期。本季我們宣布 Stifel Financial Corp.

Agreed to lease 35,000 square feet of office space at Wills Wharf in Harbor Point. In order to accommodate Steve Hall's relocation, we negotiated an early termination of the existing Office tenant lease and in the process recognized a significant non reoccurring termination fee that increased NOI for the quarter.

同意在 Harbour Point 的 Wills Wharf 租賃 35,000 平方英尺的辦公空間。為了適應 Steve Hall 的搬遷，我們協商提前終止了現有的辦公室租戶租約，並在此過程中確認了一筆巨額的非重複終止費，該費用增加了本季度的 NOI。

We are looking forward to our new tenant Stifel moving into that space in the first quarter of 2025, demonstrating that high quality, well located real estate stays occupied regardless of the market conditions. The variance between FFO and normalized FFO during the quarter is due to the change in fair market value of our derivatives reflecting a more constructive macroeconomic rate environment.

我們期待我們的新租戶 Stifel 在 2025 年第一季搬入該空間，以證明無論市場狀況如何，高品質、位置優越的房地產都將被佔用。本季 FFO 與標準化 FFO 之間的差異是由於我們的衍生性商品公平市場價值的變化反映了更具建設性的宏觀經濟利率環境。

With this quarter's strong performance, we maintain our estimate that we will achieve the top-end of our guidance range which has narrowed eliminating some of the downside as we move into the final quarter of the year. As our development projects in Harbour Point and Roswell are completed and the delivery of these assets are finalized, we may experience some movement in the timing of capitalised interest, reducing our guidance range for interest expense.

鑑於本季度的強勁表現，我們維持預期，即我們將達到指導範圍的上限，隨著進入今年最後一個季度，指導範圍已縮小，消除了一些下行因素。隨著我們在 Harbour Point 和 Roswell 的開發項目的完成以及這些資產的交付也已完成，我們可能會在資本化利息的時間上遇到一些變動，從而降低我們對利息支出的指導範圍。

Pushing these projects into next year means we will continue to capitalise the interest rather than recognizing it as a current expense. Each of our operating segments produced robust results this quarter with occupancy slightly increasing to above 95% across the portfolio. The construction management segment posted $3.4 million of gross profit in line with our estimates. We are on track to achieve our guidance midpoint for this segment, a significant all-time high for that subsidiary.

將這些項目推遲到明年意味著我們將繼續將利息資本化，而不是將其確認為當前費用。本季我們的每個營運部門都取得了強勁的業績，整個投資組合的入住率略有上升至 95% 以上。施工管理部門毛利為 340 萬美元，符合我們的預期。我們預計將實現該細分市場的指導中點，這是該子公司的歷史新高。

We expect that this segment's financial performance will return closer to its historical levels in the high single digits next year, placing some expected downward pressure on earnings growth. Looking specifically at the portfolio performance, all three segments posted positive releasing spreads. The retail segment achieved 13.1% GAAP spread with the office segment achieving 18.5% GAAP spread. These results were 7.8% and 0.8% on a cash basis, respectively.

我們預計明年該部門的財務業績將恢復到接近歷史高個位數的水平，從而給盈利增長帶來一些預期的下行壓力。具體來看投資組合的表現，所有三個細分市場都出現了積極的釋放利差。零售部門的 GAAP 利差為 13.1%，辦公室的 GAAP 利差為 18.5%。以現金計算，這些結果分別為 7.8% 和 0.8%。

Our multifamily portfolio reported a combined trade out spread of 1.8% for the quarter, consistent with the 2.0% reported last quarter. Renewal spreads on apartment leases remained strong at 4.9% for the third quarter consistent at 4.7% for the month of October.

我們的多戶型投資組合本季的綜合交易價差為 1.8%，與上季報告的 2.0% 一致。第三季公寓租賃續租利差依然強勁，為 4.9%，與 10 月的 4.7% 持平。

New lease trade outs did see some pressure in the third quarter reporting negative 0.6%. This is mainly due to one asset, the Everly in Gainesville, Georgia currently competing with some very aggressive incentives on products working towards stabilization.

新租賃交易在第三季確實面臨一些壓力，報告負 0.6%。這主要是由於喬治亞州蓋恩斯維爾的 Everly 資產目前正在與一些致力於穩定產品的非常積極的激勵措施競爭。

We expect that this will return to more normalized levels in the next 12 months as the supply and demand equation in that market reverts to its historical equilibrium. Our portfolio same-store NRI growth was negative 1.0% on a GAAP basis and negative 3% on a cash basis. The office segment was a standout performer this quarter posting 6.1% GAAP and negative 0.5% cash. Same-store growth excluding the termination fee mentioned previously.

我們預計，隨著市場的供需方程式恢復到歷史平衡，這將在未來 12 個月內恢復到更正常化的水平。我們的投資組合同店 NRI 成長率以 GAAP 計算為負 1.0%，以現金計算為負 3%。辦公部門本季表現出色，公認會計原則 (GAAP) 率為 6.1%，現金為負 0.5%。同店成長不包括前面提到的終止費用。

On the balance sheet side, we were very active for the third quarter raising $22.1 million on the ATM in addition to the $108 million of proceeds through a public common stock offering, taking advantage of the wider market rotation into rate sensitive sectors and the especially strong bid for REITs. This equity injection allowed us to deleverage the company on both stabilized and net debt metrics bringing us down to 5.9 times and 7.2 times respectively, which positions us for our near and long term growth ambitions that Shawn detailed.

在資產負債表方面，我們在第三季度非常積極地透過ATM 籌集了2,210 萬美元，此外還透過公開普通股發行籌集了1.08 億美元的收益，利用更廣泛的市場輪動進入利率敏感行業和特別強勢的產業。此次股權注入使我們能夠在穩定債務指標和淨債務指標上對公司進行去槓桿化，使我們分別降至 5.9 倍和 7.2 倍，這為我們實現肖恩詳述的近期和長期增長目標奠定了基礎。

We intend to continue to monitor the market for opportunities to execute on accretive balance sheet transactions. We use the proceeds of our ATM sales and our common stock offering to pay three loans on Chronicle Mill, the Premier Apartments and Market at Mill Creek with the remainder paying down our line of credit.

我們打算繼續監控市場，尋找執行增值資產負債表交易的機會。我們使用 ATM 銷售和普通股發行的收益來支付 Chronicle Mill、Premier Apartments 和 Mill Creek Market 的三筆貸款，其餘部分還清我們的信貸額度。

We are pleased with the execution of the equity activities which set a foundation for another step in our balance sheet transformation towards higher quality long term fixed rate debt. As stated last quarter, we intend to maintain and benefit from our investment grade credit rating. We remain vigilant within the debt private placement market and when rates and spreads reach our desired window we are ready to execute.

我們對股權活動的執行感到高興，這為我們的資產負債表轉型邁向更高品質的長期固定利率債務奠定了基礎。如上季所述，我們打算維持投資等級信用評等並從中受益。我們對債務私募市場保持警惕，當利率和利差達到我們期望的窗口時，我們就準備好執行。

Thank you again to everyone who has joined the call. As I said earlier, this is my last earnings call as a CEO. I want to take a minute to express my gratitude to all who have been a part of our company over the years. From Rob Stevenson who has been with us since the IPO, Newer analysts who have worked diligently to cover the company and our investor base that has supported the story and the entire Armada Hoffler team for their unwavering dedication. It has been my honour.

再次感謝所有加入通話的人。正如我之前所說，這是我作為執行長的最後一次財報電話會議。我想花一點時間向多年來加入我們公司的所有人表示感謝。從 IPO 以來就一直在我們身邊的 Rob Stevenson、辛勤工作的新分析師，為我們的故事提供支持的投資者基礎，以及整個 Armada Hoffler 團隊堅定不移的奉獻精神。這是我的榮幸。

I look forward to supporting Shawn and the leadership team as Executive Chairman as they propel the company forward. Operator, we are now ready for the question-and-answer session.

我期待以執行主席的身份支持肖恩和領導團隊推動公司向前發展。接線員，我們現在準備好進行問答環節了。

Thank you, ladies, and gentlemen. We will now begin the question-and-answer session. (Operator Instructions). Rob Stevenson, Strand.

謝謝你們，女士們、先生們。我們現在開始問答環節。（操作員說明）。羅布史蒂文森，斯特蘭德。

Good morning, guys. Shawn, you talked in your prepared remarks about four, I think it was, four multifamily properties with like 900 units that you were adding. What assets are those?

早安，夥計們。肖恩，您在準備好的發言中談到了您要添加的四處（我認為是四處多戶住宅，大約有 900 個單元）。那些是什麼資產？

So, in the capital raise, we reviewed the Allied, which you all know about, and the idea there was the Allied and Southern Post, which is the Chandler, to equitize them appropriately. And then there are two more, one or both of which are on the preferred equity platform.

因此，在融資中，我們回顧了你們都知道的聯合報，以及聯合報和南方郵報（即錢德勒報）的想法，以適當地對它們進行股票化。然後還有另外兩個，其中一個或兩個都在優先股權平台上。

One is the allure and the other is Gainesville 2, down in Gainesville, Georgia. So, the idea there was to equitize the two in the development pipeline and then capitalize on the opportunity to grab two of the deals off of the preferred equity or mezzanine financing platform.

一是魅力，二是位於喬治亞州蓋恩斯維爾的蓋恩斯維爾 2。因此，我們的想法是在開發管道中對兩者進行股權化，然後利用這個機會從優先股權或夾層融資平台中獲取其中的兩筆交易。

And when do the preferred ones expect to take control of those?

首選的人預計什麼時候能夠控制這些？

Yeah, So, we're, we are working on timing now. What we told the market was you could expect anywhere from 6 to 24 months, depending on where the stabilization occurs. In two cases, as I mentioned, we have assets next door. Right. One being Harbor Point Ally, the other being Gainesville.

是的，所以，我們現在正在努力安排時間。我們告訴市場的是，預計持續時間為 6 至 24 個月，取決於穩定發生的時間。正如我所提到的，在兩種情況下，我們在隔壁都有資產。正確的。一個是Harbor Point Ally，另一個是Gainesville。

So, we want to make sure we don't erode the foundation. We have some flexibility there. So, we're working on timing. But I would be thinking between six and 24 months, about bringing those on balance sheet, if you will, and closer to stabilization.

因此，我們要確保不會侵蝕基礎。我們在那裡有一定的靈活性。所以，我們正在努力安排時間。但如果你願意的話，我會考慮在 6 到 24 個月之間將這些納入資產負債表，並更接近穩定。

Okay. And then anything at this point looking like it's going to pencil economically in, over the next, I guess now that we're in November, the next 14 months from a development start front for you guys, or is it still looking challenging in the intermediate term here?

好的。然後，目前看來，接下來的任何事情都會在經濟上有所體現，我想現在已經是 11 月，距離開發開始還有 14 個月，或者在未來的發展中看起來仍然具有挑戰性這裡有中期嗎？

Rob, I think 14 months for us is a little bit of a long horizon. Right. Like, So, we think about it in six-month chunks. I can tell you we don't have anything sitting in front of us right now aside from the redevelopment of the Bed Bath & Beyond here in Virginia Beach, which I alluded to having that substantially kind of an eye, at least a line of sight on having that substantially full.

Rob，我認為 14 個月對我們來說有點遙遠。正確的。就像，所以，我們會分六個月來考慮這個問題。我可以告訴你，除了弗吉尼亞海灘的 Bed Bath & Beyond 的重建之外，我們現在沒有任何東西擺在我們面前，我提到過它有一種實質上的眼睛，至少是一條視線就已經基本滿了。

We've kicked off that process, So, we're excited about that. But in terms of, ground up, brand new development, I don't have anything that we're comfortable talking to you about today in terms of spread. There are some interesting deals out there. We just don't believe the spread is the arbitrage there has been created wide enough for us to bring it to market.

我們已經啟動了這個過程，所以我們對此感到很興奮。但就全新的開發而言，我今天沒有任何可以與您輕鬆談論傳播的內容。那裡有一些有趣的交易。我們只是不相信價差是已經創造的套利範圍，不足以讓我們將其推向市場。

Okay. And then the Bed Bath & beyond, the one that you have the national tenant ready to take over, that's the Virginia Beach asset?

好的。然後是床浴及其他設施，您已讓全國租戶準備好接管，這就是弗吉尼亞海灘的資產？

No, sir. That's the Durham asset. The Virginia Beach asset is the -- is the redevelopment play.

不，先生。這就是達勒姆的資產。弗吉尼亞海灘資產是重建項目。

Okay, and how is that multiple tenants? It wasn't clear to me whether or not you had several tenants looking at the space or whether or not it was going to be broken down and diced into several smaller boxes on the redevelopment, essentially.

好的，那麼多租戶怎麼樣？我不清楚是否有幾個租戶在看這個空間，或者在重建過程中它是否會被分解並切成幾個更小的盒子。

So, the Durham asset is one user taking the entire space. Virginia Beach asset, as we said today, will be cut into three boxes. We'll essentially re-facade to get this high-quality tenant where it needs to be from a market standpoint.

因此，達勒姆資產是一位用戶佔據整個空間。正如我們今天所說，弗吉尼亞海灘資產將被切成三個盒子。從市場的角度來看，我們基本上會重新設計外觀，以獲得所需的高品質租戶。

And So, essentially, we'll demise that box into three, put a new facade on the building, and we'll be up and running. So, kind of a quick and dirty redevelopment play there. But again, it's. We're really excited about that. Hope to be able to come to you in weeks, a few weeks to talk about that in more detail.

因此，本質上，我們將把那個盒子分成三個，在建築物上放置一個新的立面，然後我們就可以開始運作了。所以，這是一場快速而骯髒的重建活動。但話又說回來，確實如此。我們對此感到非常興奮。希望幾週後能夠來找你，更詳細地討論這個問題。

All right, that's it for me. Just, Louis, you're going to be missed and look forward to hearing all about your jet skiing adventures with Mike O'Hara in the future.

好吧，我就這樣了。只是，路易斯，我們會想念你的，並期待未來聽到你與邁克·奧哈拉 (Mike O'Hara) 一起進行水上摩托車冒險的所有故事。

Thanks, Rob. We'll keep you up-to-date.

謝謝，羅布。我們會讓您了解最新情況。

Andrew Berger, Bank of America.

安德魯·伯傑，美國銀行。

Good morning and congrats to both Louis and Shawn on the transition. Maybe, question for Shawn. Just wanted to ask about your latest thoughts on office. Sounds like multifamily and retail is where you're seeing the best opportunities right now. we have seen a lot of recovery in certain markets in office fundamentals.

早安，恭喜路易斯和肖恩的過渡。也許，向肖恩提問。只是想問一下您對辦公室的最新想法。聽起來多戶住宅和零售業是您目前看到的最佳機會。我們看到某些市場的辦公室基本面出現了很大的復甦。

You've spoken positively about your portfolio. Biggest challenge is that you don't have the space to accommodate tenants. So, why are you a bit more hesitant to build office? Any thoughts on that?

您對您的投資組合給予了正面的評價。最大的挑戰是沒有空間容納租戶。那麼，為什麼您對建立辦公室有點猶豫呢？對此有什麼想法嗎？

Yeah, I think at the end of the day, well, let's start by saying the third quarter, same-store with 6:1, as I mentioned, and the renewal spreads are 18 and a half, which is strong. We're at 95%, Andrew, and we have been at 95%. And I want to make sure that gets in this call again.

是的，我想歸根結底，我們先從第三季開始，同店比例為 6:1，正如我所提到的，續訂價差為 18 倍半，非常強勁。我們已經完成了 95%，安德魯，我們一直都完成了 95%。我想確保這一點再次出現在這次電話會議中。

I know it said it once, I'll say it again. I think the challenge goes back to this notion of spread, right. Not only is it the office that people have been nervous about over the past 24 months, 36 months, 48 months, but also, this notion of how can you actually build that at today's cost with the appropriate spread.

我知道它已經說過一次了，我會再說一次。我認為挑戰可以追溯到傳播的概念，對吧。在過去的 24 個月、36 個月、48 個月裡，人們不僅對辦公室感到緊張，而且還擔心如何以今天的成本和適當的價差來實際建造辦公室。

And we don't believe that, on a risk adjusted return basis or yield basis, we don't believe that works. So, it's in the same basket as the rest. I will say that we still, we still stand by our office product. Does that mean we want to run out and create some new office product? Not necessarily, not right now. We don't think it's the right timing.

我們不認為，在風險調整後的回報基礎或收益率基礎上，我們認為這不起作用。所以，它和其他的放在同一個籃子裡。我想說的是，我們仍然堅持我們的辦公產品。這是否意味著我們想用完並創造一些新的辦公室產品？不一定，現在還不行。我們認為現在時機不對。

And so, I would say that the broad answer is the spreads don't work on a risk adjusted basis one, two, we believe that we have the supply demand equation leaning in our favour. So, you know that there are, there are a bunch of considerations there. Product we do have, as is trophy and we'll continue to market that and obviously from the results, yield strong results as a result of that supply demand equation.

因此，我想說，廣泛的答案是利差在風險調整的基礎上不起作用，一、二，我們相信供需方程式對我們有利。所以，你知道有很多考慮因素。我們確實擁有產品，就像獎盃一樣，我們將繼續推銷它，顯然從結果來看，由於供需方程，我們將產生強勁的結果。

Got it. That's helpful. Maybe just to follow up. Are you able to quantify in any way the spread that would be attractive across the different asset classes, maybe how far off one is from another. Just curious what you're seeing today?

知道了。這很有幫助。也許只是為了跟進。您是否能夠以任何方式量化不同資產類別之間有吸引力的利差，也許一種資產與另一種資產的差距有多大。只是好奇你今天看到了什麼？

Yeah, I think. Well, generally speaking, what the company has targeted in the past was essentially a 20% spread. I will tell you that is very difficult to achieve today. I think the answer to your question lies in the investor's mind, Andrew, because they're going to want a higher spread for an office than they are multifamily. Right. And at the end of the day, let's just use the 20%.

是的，我想。嗯，一般來說，該公司過去的目標基本上是 20% 的價差。我會告訴你，今天要達成這個目標非常困難。我認為你的問題的答案在於投資者的頭腦，安德魯，因為他們希望辦公室的價差比多戶住宅更高。正確的。最後，我們只使用 20%。

We don't even believe you can get there as we sit today. So, we're constantly evaluating opportunities and as you would imagine, the office requires a much larger spread than for instance a multifamily. So, we're not anywhere close to, to the kind of larger spreads on office. So, I would say that's probably the last thing you'd see us do relative to our three product types.

我們今天甚至不相信你能到達那裡。因此，我們不斷評估機會，正如您想像的那樣，辦公室需要比多戶住宅更大的空間。因此，我們還沒有接近辦公室那種更大的利差。所以，我想說，這可能是您看到我們相對於我們的三種產品類型所做的最後一件事。

Got it. Well, appreciate the color and maybe just one more from Matt on the balance sheet. a couple larger pieces of debt coming due starting in May and then a few secured pieces in 26. I'm just curious, what are the latest conversations on addressing those?

知道了。好吧，欣賞一下顏色，也許只是資產負債表上馬特的另一個顏色。幾筆較大的債務將於 5 月開始到期，然後是幾筆擔保債務將於 26 日到期。我只是好奇，關於解決這些問題的最新對話是什麼？

Yes, certainly. Thank you, Andrew. The term loan that comes due in May actually has a one-year extension. You can probably see that in the footnote of the supplemental. So, we really have to start thinking about that in the middle of 2026. All of that unsecured debt are prime candidates for a debt private placement. As I said in my prepared remarks, we're monitoring that that heavily.

是的，當然。謝謝你，安德魯。五月到期的定期貸款實際上可以延長一年。您可能可以在補充的腳註中看到這一點。因此，我們確實必須在 2026 年中期開始考慮這個問題。所有這些無擔保債務都是債務私募的主要候選人。正如我在準備好的演講中所說，我們正在密切關注這一情況。

We intend to retain and use our credit rating and when the timing is right, we are ready to jump into that debt private placement market and put some higher quality, long term fixed Rate debts on our balance sheet.

我們打算保留並使用我們的信用評級，當時機成熟時，我們準備進入債務私募市場，並將一些更高品質的長期固定利率債務納入我們的資產負債表。

Peter Abramowitz, Jefferies.

彼得·阿布拉莫維茨，杰弗里斯。

Yeah, thank you. And just to follow up on Matt's comments there, Matt, just kind of curious what you're seeing today in terms of spreads in the private placement market where you think your cost of debt would be on sort of a 10 year issuance today and then where you would like to see it get to, to actually execute.

是的，謝謝。只是為了跟進馬特的評論，馬特，只是有點好奇你今天在私募市場上看到的利差，你認為你的債務成本將是今天發行的 10 年期債券，然後您希望看到它實際執行到的地方。

Yes, certainly. Good morning, Peter. Great, great question. We or the last time we looked at it a couple of weeks ago, we were being told by advisors that we're being around the 6.5% on a 10 year for the cost of debt on a 10 year. The 10 year plus, plus our spread.

是的，當然。早安，彼得。很好，很好的問題。幾週前我們最後一次查看這個問題時，顧問告訴我們，我們 10 年期的債務成本約為 6.5%。10 年以上，加上我們的利差。

I know the 10 years has actually increased since then, So, it may have risen a little. We would like to be closer to 6%. Probably if we could get under 6% that would be ideal. But closer to 6% would be more favourable for our windows.

我知道從那時起10年實際上已經增加了，所以，它可能增加了一點。我們希望接近 6%。也許如果我們能達到 6% 以下那就是理想的了。但接近 6% 對我們的窗戶更有利。

Okay, that's helpful. And then I know you're not giving '25 guidance. Maybe you've talked about some of the moving pieces, but just in terms of organic growth in the same-store portfolio, could you just talk about maybe some of the puts and takes we should be thinking about across the different property segments as we look to '25?

好的，這很有幫助。然後我知道你不會提供 '25 指導。也許您已經談到了一些變化的部分，但就同店投資組合的有機增長而言，您能否談談我們在不同的房地產細分市場中應該考慮的一些看跌期權和賣出期權看看'25？

Yes, certainly, Peter. So, if we're looking across organic growth in the portfolio for next year, the biggest opportunities we have is at the Interlock asset in west midtown Atlanta. That's a fantastic asset. And the team have got a number of prospective tenants both in the office and the retail space there that they're working on. What I think we would kind of have everybody look at is the kind of inorganic growth.

是的，當然，彼得。因此，如果我們考慮明年投資組合的有機成長，我們最大的機會是位於亞特蘭大中西部的 Interlock 資產。這是一筆了不起的資產。該團隊在他們正在開發的辦公室和零售空間中都有許多潛在租戶。我認為我們應該讓每個人都專注的是無機成長。

You have the Allied apartment leasing up, you have Southern Post coming up to full stabilization and obviously T. Rowe Price are going to come in the T. Rowe assets there at the beginning of next year.

Allied 公寓已出租，南方郵報即將完全穩定，顯然 T. Rowe Price 將在明年初加入 T. Rowe 資產。

Yeah, I think I would add to that, Peter. We've had some interest and I don't want to get too far over the skis here, but we had some interest in the office product that we're working on. Now I got heads shaking around the table and I think this is a, game of Tetris for us how do we best fit the pieces in. Especially here in Virginia Beach, right to Matt's point. Got some opportunity down in the Southeast, but I think that's how we're thinking about growth.

是的，我想我要補充一點，彼得。我們有一些興趣，我不想在這裡談論滑雪板，但我們對我們正在開發的辦公室產品有一些興趣。現在，我在桌子周圍搖頭，我認為這對我們來說是一場俄羅斯方塊遊戲，我們如何才能最好地融入這些棋子。尤其是在維吉尼亞海灘，這正是馬特的觀點。在東南部有一些機會，但我認為這就是我們考慮成長的方式。

How do we take what limited inventory we have or vacancy we have and capitalize on that. We got a couple of ideas there. So, I think, for us it's slow and steady wins the race at this point. And we're going to continue to create, create value on the margins there, if you will, I think is the appropriate way to say it.

我們如何利用有限的庫存或空缺並加以利用。我們在那裡得到了一些想法。所以，我認為，對我們來說，此時此刻，緩慢而穩定地贏得了比賽。我們將繼續創造，創造邊際價值，如果你願意的話，我認為這是合適的表達方式。

Okay, that's helpful. And then just one more on the, on the financing market. I think some of the office REITs, office assets starting to loosen up. Just curious what, what you're seeing sort of on that side and potentially what that might mean for, buyers if you are looking to monetize T. Rowe as. As you get closer to stabilization?

好的，這很有幫助。然後還有一個關於融資市場的問題。我認為有些辦公室REITs、辦公室資產開始放鬆。只是好奇你在這方面看到了什麼，以及如果你想透過 T. Rowe 賺錢，這對買家可能意味著什麼。當你越來越接近穩定？

I think, Peter, I'll jump in really quick. Yes, I think, the sentiment is moving in the right direction. Our view is it's still pretty early, especially to be talking about trades and Samad. I don't know if you want to add some color to that in the secured market space. But from the. Yes, we actually, Peter, haven't, haven't looked into the secured financing, obviously, as we talk about trying to transition the balance sheet to a kind of a higher quality debt.

我想，彼得，我會很快介入。是的，我認為，人們的情緒正在朝著正確的方向發展。我們的觀點是現在還為時過早，尤其是談論交易和 Samad。我不知道您是否想在安全的市場空間中添加一些色彩。但從.是的，實際上，彼得，當我們談論試圖將資產負債表轉變為更高品質的債務時，顯然我們還沒有研究過擔保融資。

That doesn't mean that we wouldn't look at that when one of our office assets comes up for renewal. But the first office asset that we need to look at is the Constellation building and that's a number of years out with its extension options.

這並不意味著當我們的一項辦公資產需要更新時我們不會考慮這一點。但我們需要關注的第一個辦公資產是星座大樓，它的擴建選項還需要數年時間。

Thank you. (Operator Instructions) There are no further questions at this time. I'd now like to turn the call back over.

謝謝。（操作員說明） 目前沒有其他問題。我現在想把電話轉回去。

Yes, sir, I was just going to say if there are no further questions, I just want to say to the team here at Armada Hoffler, Lou, thank you again for your leadership. To the investors and stakeholders on the phone with us, we really appreciate you taking the time to listen to the story and look forward to some exciting news on the forefront. So, thank you again and have a nice, have a nice rest of your morning.

是的，先生，我只想說，如果沒有其他問題，我只想對 Armada Hoffler 的團隊說，Lou，再次感謝您的領導。對於與我們通電話的投資者和利益相關者，我們非常感謝您花時間聆聽這個故事，並期待一些令人興奮的前沿消息。所以，再次感謝您，祝您早安。

I would now like to turn. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that please disconnect your lines. Thank you very much.

我現在想轉。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，並請斷開您的線路。非常感謝。