AH Realty Trust, Inc (AHRT) 2015 Q2 法說會逐字稿

Greetings and welcome to Armada Hoffler's second-quarter 2015 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, August 4, 2015.

各位好，歡迎參加 Armada Hoffler 2015 年第二季財報電話會議。（接線員指示）提醒各位，本次電話會議將於今天（2015 年 8 月 4 日，星期二）錄音。

I will now turn the conference call over to Michael O'Hara. Thank you, sir. You may begin.

現在我將把電話會議交給 Michael O'Hara。謝謝您，先生。您可以開始了。

Good morning, and thank you for joining Armada Hoffler's second-quarter 2015 earnings conference call and webcast. Those of you familiar with our Company will notice that Julie Trudell, our Vice President of Investor Relations is not with us this morning.

各位早安，感謝各位參加 Armada Hoffler 2015 年第二季財報電話會議與網路直播。熟悉本公司的人會注意到，我們的投資人關係副總裁 Julie Trudell 今天早上未與我們一同出席。

Julie recently accepted a position as a Senior Vice President of Investor Relations in the healthcare space where she had previously worked for many years before working at Armada Hoffler. We wish her well in her new role. I will serve as the contact for any investor analyst inquiries for the time being.

Julie 近期接受了醫療保健領域投資人關係資深副總裁的職位；在加入 Armada Hoffler 之前，她曾在該領域工作多年。我們祝福她在新職務上一切順利。暫時期間，任何投資人與分析師的詢問將由我擔任聯絡窗口。

On the call this morning in addition to myself are Lou Haddad, CEO, and Eric Smith, our Chief Investment Officer, who will be available for questions.

今天早上的電話會議，除我之外，還有執行長 Lou Haddad，以及我們的投資長 Eric Smith，他們將可回答提問。

The press release announcing our second-quarter earnings along with our quarterly supplemental package was distributed this morning. A replay of this call will be available shortly after the conclusion of the call through September 4, 2015. The numbers to access the replay are provided in the earnings press release.

本公司今早已發布公布第二季盈餘的新聞稿，並同時提供季度補充資料包。本次電話會議的重播將於會議結束後不久提供，並可收聽至 2015 年 9 月 4 日。重播的撥入號碼已載於盈餘新聞稿中。

Those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein as of today, August 4, 2015, will not be updated subsequent to this initial earnings call. During this call, we will make forward-looking statements including statements related to our future performance of our portfolio, our development pipeline, impact of acquisitions and dispositions, our construction business, our portfolio performance and financing activities, as well as comments on our outlook.

對於收聽本次簡報重播的聽眾，我們提醒：本次發言係截至今日（2015 年 8 月 4 日）之內容，於本次初次財報電話會議後將不再更新。在本次電話會議中，我們將作出前瞻性陳述，包括與我們投資組合未來表現、開發管線、併購與處分的影響、營建業務、投資組合表現與融資活動相關之陳述，以及對前景的評論。

Listeners are cautioned that these statements are subject to certain risks and uncertainties, 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 risk factors discussed in our press release this morning and in documents we have filed with or furnished to the SEC.

提醒聽眾注意，這些陳述受某些風險與不確定性影響，其中許多難以預測且通常超出我們控制範圍。這些風險與不確定性可能導致實際結果與我們目前預期存在重大差異；我們建議聽眾查閱今早新聞稿以及我們向 SEC 申報或提供之文件中所討論的風險因素。

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 www.ArmadaHoffler.com.

我們也將討論若干非 GAAP 財務衡量指標，包括但不限於 FFO 與標準化（normalized）FFO。這些非 GAAP 指標的定義，以及與最可比 GAAP 指標之調節表，均收錄於季度補充資料包中，可於我們網站 www.ArmadaHoffler.com 取得。

I would now like to turn the call over to our Chief Executive Officer, Lou Haddad. Lou?

現在我想把電話會議交給我們的執行長 Lou Haddad。Lou？

Thanks, Mike. Good morning, and thank you for joining us. As you can see from this morning's press release, we've had another tremendous quarter. Activity across the broad spectrum of our business model continues to accelerate. Increased third-party construction profits, robust multifamily leasing, stabilization of nearly 300,000 square feet of development projects, and accretive capital recycling through acquisitions and dispositions have once again enabled us to raise our earnings guidance for the year.

謝謝你，Mike。各位早安，感謝各位加入我們。從今早的新聞稿可見，我們又度過了一個非常亮眼的季度。我們商業模式各面向的活動持續加速。第三方營建利潤增加、多戶住宅租賃強勁、近 300,000 平方英尺的開發專案達到穩定，以及透過併購與處分進行具增益性的資本循環，再次使我們得以上調今年的盈餘指引。

Two years ago at our IPO, we told investors that the benefits of being diversified and integrated would ultimately be self-evident in our results. We are glad to continue delivering on that promise.

兩年前在 IPO 時，我們告訴投資人，多元化與垂直整合的效益最終將在我們的業績中不言自明。我們很高興能持續兌現這項承諾。

I will now cover a few highlights from last quarter and some of the recent developments in our business. Mike O'Hara will then discuss the quarterly results in detail. We are pleased to report another solid quarter with FFO per share of $0.22 and normalized FFO per share of $0.24, which was higher than anticipated as we did not expect to reach this run rate until the third quarter of this year.

接下來我將說明上一季的一些重點，以及我們業務近期的發展。之後 Mike O'Hara 將詳細說明季度結果。我們很高興報告本季再度交出穩健成績：每股 FFO 為 0.22 美元、每股標準化 FFO 為 0.24 美元，優於預期，因為我們原本預期要到今年第三季才會達到這樣的運行水準。

We have raised both the bottom and top ends of our guidance range. We now expect 2015 full-year normalized FFO of $0.88 to $0.91 per share.

我們已同時上調指引區間的下緣與上緣。我們目前預期 2015 年全年每股標準化 FFO 為 0.88 至 0.91 美元。

Positive changes in our outlook for third-party construction profits, G&A, multifamily leasing and interest expense contributed to our guidance revision which Mike will address in more detail. At quarter end, occupancy across the core portfolio was 95.3%, which continues to be within our targeted range. Notably excluded from this occupancy figure are both Encore and Liberty Apartments, which are both still in leaseup. As of our call today, occupancy for both of these assets is in excess of 80%, which is slightly ahead of our expectations.

我們對第三方營建利潤、一般及行政費用（G&A）、多戶住宅租賃與利息費用的展望出現正向變化，促使我們修正指引；Mike 將更詳細說明。季末時，核心投資組合整體出租率為 95.3%，持續落在我們的目標區間內。值得注意的是，此出租率數字未包含 Encore 與 Liberty Apartments，兩者目前仍在招租期。截至今天電話會議時，這兩項資產的出租率均超過 80%，略優於我們的預期。

We had forecasted a temporary drop in occupancy at the Cosmopolitan due to the initial leaseup of the adjacent Encore property. However, the Cosmo has maintained occupancy in the high 90%s throughout the process, thereby providing even further evidence of the tremendous market strength of Town Center.

由於相鄰的 Encore 物業初期招租，我們曾預期 Cosmopolitan 的出租率會暫時下滑。然而，Cosmo 在整個過程中仍維持在 90% 後段的高水準出租率，進一步證明 Town Center 市場的強勁動能。

When you also consider the perennially full Smith's Landing property and the handsome profit on sale from the Whetstone project in Durham, you can understand how extremely pleased we are with the performance of the multifamily sector of our business.

再加上長期滿租的 Smith's Landing 物業，以及位於達勒姆（Durham）的 Whetstone 專案出售所帶來的可觀利潤，各位就能理解我們對多戶住宅業務部門的表現有多麼滿意。

Our success in leasing and the strength of our overall portfolio is evidenced by an increase in quarterly GAAP and cash same-store NOI, 3.2% and 5.4% respectively, compared to the second quarter of 2014. You will note that this makes four consecutive quarters of significant same-store sales growth.

我們在租賃上的成功以及整體投資組合的強勁，反映在同店（same-store）NOI 的季度成長上：與 2014 年第二季相比，GAAP 同店 NOI 與現金同店 NOI 分別增加 3.2% 與 5.4%。各位會注意到，這已是連續第四個季度出現顯著的同店 NOI 成長。

Staying on the theme of our portfolio assets, we continue to actively manage our portfolio in the context of asset quality, risk management, geographic diversification, and the management of our balance sheet. As we previously announced, we completed the sale of Whetstone Apartments in Durham, North Carolina during the second quarter for approximately $35.6 million, representing an implied cap rate of 5.7% on pro forma rents and a profit well in excess of 20%. This 204-unit apartment community was delivered in late 2014, and sold at a very attractive spread despite being in the early stages of leaseup.

延續投資組合資產的主題，我們持續在資產品質、風險管理、地理多元化，以及資產負債表管理的脈絡下，積極管理投資組合。如先前所公告，我們於第二季完成出售北卡羅來納州達勒姆的 Whetstone Apartments，成交價約 3,560 萬美元；以備考（pro forma）租金計算的隱含資本化率為 5.7%，且獲利遠超過 20%。這座 204 戶的公寓社區於 2014 年底交付，儘管仍處於招租初期階段，仍以非常具吸引力的價差售出。

We utilized a portion of these sale proceeds after quarter end to purchase Socastee Commons, a 57,000 square foot [buy low] grocery-anchored retail center located in Myrtle Beach, South Carolina, in a 1031 tax-deferred transaction. We purchased this asset for $8.7 million, including the assumption of $5 million of debt, for an implied cap rate on current NOI of 7.25%.

我們在季後運用部分出售所得，透過 1031 延稅交易購買 Socastee Commons——一座位於南卡羅來納州默特爾比奇（Myrtle Beach）、面積 57,000 平方英尺、以超市為主力店（grocery-anchored）的零售中心。我們以 870 萬美元購入該資產（包含承接 500 萬美元債務），以目前 NOI 計算的隱含資本化率為 7.25%。

This center is 100% leased as of today. In addition to providing a positive yield spread on the proceeds from the Whetstone sale, this purchase represents our first portfolio asset in South Carolina as a publicly-traded company. Much like Virginia Beach, Myrtle Beach is a vibrant mid-Atlantic destination which we believe provides a great climate for retail sales growth.

截至今日，該中心已達 100% 出租。除為 Whetstone 出售所得提供正向的收益率利差外，此次收購亦代表我們作為上市公司後，在南卡羅來納州的第一項投資組合資產。與維吉尼亞海灘（Virginia Beach）相似，默特爾比奇是充滿活力的中大西洋旅遊目的地；我們相信其具備零售銷售成長的良好環境。

We have previously owned assets in this robust market and we expect to see additional opportunities for development construction and acquisitions in the near future. There is a small amount of developable land associated with this center, and we are exploring how best to monetize it and further enhance the impact from this acquisition.

我們過去曾在這個強勁市場持有資產，並預期在不久的將來會看到更多開發、營建與收購機會。該中心附帶少量可開發土地，我們正評估最佳的變現方式，以進一步放大此次收購的效益。

We have also entered into a definitive agreement to acquire Providence Plaza, a 97% occupied 103,000 square foot mixed-use complex located in the South Park submarket of Charlotte, North Carolina for $26.2 million. This property, which will be purchased with the remainder of the proceeds from the Whetstone disposition, was constructed in 2008, and is comprised of 54,000 square feet of office space and 49,000 square feet of retail space across three buildings.

我們也已簽訂具約束力的最終協議，將以 2,620 萬美元收購 Providence Plaza——一座位於北卡羅來納州夏洛特（Charlotte）South Park 次市場、出租率 97%、面積 103,000 平方英尺的複合用途（mixed-use）園區。該物業將以 Whetstone 處分所得的剩餘款項購買，建於 2008 年，由三棟建築組成，包含 54,000 平方英尺的辦公空間與 49,000 平方英尺的零售空間。

The buildings include a four-story 70,000 square foot office with ground-floor retail and two separate retail buildings, along with a two-floor parking garage of 256 spaces. This acquisition allows us to diversify into the Charlotte market and in particular the South Park submarket, where average household income immediately surrounding this asset exceeds $145,000 per year. This mixed-use asset is a fantastic addition to the Armada Hoffler portfolio.

建築內容包括一棟四層樓、70,000 平方英尺、底層為零售的辦公大樓，以及兩棟獨立的零售建築，並附有一座兩層樓、共 256 個車位的停車樓。此次收購使我們得以分散布局至夏洛特市場，特別是 South Park 次市場；該資產周邊的平均家庭收入每年超過 145,000 美元。這項複合用途資產是 Armada Hoffler 投資組合中極佳的新增標的。

In addition to the stabilized NOI of approximately $1.9 million and a going-in cap rate of 7.25%, this site also included an undeveloped tract of land of approximately 1 acre that is owned for multifamily development. We have already begun our efforts to determine how the value of this additional land could be best monetized for our shareholders, and we will keep you updated on our progress.

除了約190萬美元的穩定NOI以及7.25%的初始資本化率（going-in cap rate）之外，該據點亦包含一塊約1英畝、由本公司持有並用於多戶住宅開發的未開發土地。我們已開始評估如何將這塊額外土地的價值以最有利於股東的方式變現，並將持續向各位更新進展。

Recycling the capital from the Whetstone asset into Socastee Commons and Providence Plaza, inclusive of the wholesale to retail value spread created by our development process, achieved a number of goals simultaneously. We maintain the institutional grade asset quality of our portfolio while providing FFO and NAV per share accretion, and improving our geographic diversification through our expansion into North and South Carolina.

將Whetstone資產回收的資本再投入Socastee Commons與Providence Plaza，並納入我們開發流程所創造的批發到零售價值差（wholesale to retail value spread），同時達成多項目標。我們在維持投資機構等級的資產品質之際，亦帶來每股FFO與每股NAV的增厚，並透過拓展至北卡羅來納州與南卡羅來納州提升地理分散度。

In addition, we have the opportunity to leverage our development expertise through the additional opportunities at and around both properties.

此外，我們也有機會透過在兩處物業及其周邊的額外機會，運用我們的開發專長。

Keeping with the theme of recycling capital, we have engaged a brokerage firm and are actively soliciting offers for the sale of the Oceaneering Building located in Chesapeake, Virginia. Given the level of buyer competitiveness for credit quality single-tenant assets with long-term leases, combined with our belief in the inherent risk of holding such assets while lease term burns off, we believe it is in the best interest of our shareholders to sell the Oceaneering Building into the current environment and redeploy equity generated by our development engine to create additional shareholder value. As with Whetstone, our expectation is a profit margin of 15% to 20%, which will also be excluded from FFO.

延續資本回收再利用的主題，我們已委託一家經紀公司，並正積極徵求出售位於維吉尼亞州切薩皮克（Chesapeake）的Oceaneering大樓之出價。鑑於具信用品質的單一承租戶資產、且附長期租約的買方競爭程度，加上我們認為在租期逐步消耗（lease term burns off）時持有此類資產存在固有風險，我們相信在目前市場環境下出售Oceaneering大樓，並將由我們開發引擎所產生的股權資金再部署以創造額外股東價值，符合股東最佳利益。與Whetstone相同，我們預期利潤率為15%至20%，且該利潤亦將自FFO中排除。

Rounding out our acquisition activity, we announced after quarter end the acquisition of Columbus Village, a 65,000 square foot retail property located adjacent to the Town Center of Virginia Beach and anchored by Barnes & Noble, along with Ulta Beauty, Five Below, FYE and Lens Crafters. The center is currently 100% leased with strong upward pressure on renewal rates. Even more importantly, this 5-acre parcel is a prime target for redevelopment. To this end, we have already begun discussions with the City of Virginia Beach on how best to integrate this asset into our public-private partnership.

在收購活動方面，我們於季後宣布收購Columbus Village，這是一處約65,000平方英尺的零售物業，位於維吉尼亞海灘（Virginia Beach）Town Center旁，主要承租戶包括Barnes & Noble，並有Ulta Beauty、Five Below、FYE與Lens Crafters。該購物中心目前出租率為100%，續租租金具明顯上行壓力。更重要的是，這塊5英畝的地塊是重建開發的優質標的。為此，我們已開始與維吉尼亞海灘市政府討論，如何將該資產最佳地納入我們的公私合夥（public-private partnership）。

While Hampton Roads is not the focus of our acquisition platform, clearly the strategic nature of this property fits squarely into our investment philosophy and should create significant long-term value for our shareholders.

雖然Hampton Roads並非我們收購平台的重點區域，但此物業的策略性顯然完全符合我們的投資理念，並應可為股東創造可觀的長期價值。

Mike is going to provide additional details on this transaction in his remarks, but I would like to point out that Columbus Village is another example of a property owner vetting our business model, underwriting the value of our properties, and ultimately taking a significant equity position in our Company. In this case, in excess of 1.2 million operating partnership units valued at $11 each, in exchange for all of their equity in this asset.

Mike將在他的發言中提供此交易的更多細節，但我想指出，Columbus Village是另一個例子：物業所有人審視我們的商業模式、評估我們物業的價值，並最終在本公司取得相當可觀的股權部位。本案中，對方以其在該資產的全部股權交換超過120萬個營運合夥單位（operating partnership units），每單位估值11美元。

Shifting gears from the portfolio to the third-party construction business, we are very pleased with the outlook for this segment of the business over the next few years. In addition to the development projects that are underway, the $170 million Exelon engagement continues to proceed as scheduled and is tracking towards completion in the second quarter of 2016.

將焦點從投資組合轉向第三方營造業務，我們對未來幾年該業務部門的展望感到非常滿意。除正在進行的開發專案外，1.7億美元的Exelon案仍按計畫推進，並正朝2016年第二季完工的目標前進。

Our recent announcement that Armada Hoffler Construction Company was contracted to build two new hotels at the oceanfront in Virginia Beach, Virginia is just the latest evidence of the lucrative nature of our third-party construction business, which, just as it has many times in years past, produces profits at the higher end of our historical range as the economy continues to improve and as opportunities to build projects for both long-term and new clients expand.

我們近期宣布Armada Hoffler Construction Company受託在維吉尼亞州維吉尼亞海灘的海濱興建兩家新飯店，這只是我們第三方營造業務具高獲利性的最新證明。隨著經濟持續改善，以及為長期客戶與新客戶承建專案的機會擴大，該業務如同過去多年多次展現的情況一樣，正產生接近我們歷史區間上緣的利潤。

In concluding my remarks today, I will now update you on the activities of our Development Company. As you may recall, we delivered four development pipeline projects during the first quarter of 2015, which included more than 200,000 square feet of fully-leased office space consisting of two build-to-suit office buildings for the Commonwealth of Virginia, which are 100% leased for 15 years, and the Oceaneering Building which I discussed earlier.

在結束我今天的發言前，我將更新各位我們開發公司的最新動態。如各位所記得，我們在2015年第一季交付了四個開發管線專案，其中包括超過200,000平方英尺、已全數出租的辦公空間，包含為維吉尼亞州政府（Commonwealth of Virginia）量身打造（build-to-suit）的兩棟辦公大樓，已100%出租且租期15年，以及我先前提到的Oceaneering大樓。

We also delivered Sandbridge Commons, a new 70,000 square foot shopping center in Virginia Beach, anchored by a Harris Teeter grocery store. With leasing nearly complete, we are about to launch another phase of small shops at the center. This leaves Johns Hopkins Village and Lightfoot Marketplace as the remaining undelivered projects in our pipeline. These two represent over $90 million of investment, and both are proceeding on budget and on schedule.

我們也交付了Sandbridge Commons，這是位於維吉尼亞海灘的新建70,000平方英尺購物中心，以Harris Teeter超市為主力店。隨著招商接近完成，我們即將在該中心啟動另一階段的小型店鋪開發。如此一來，我們管線中尚未交付的專案僅剩Johns Hopkins Village與Lightfoot Marketplace。這兩個專案合計代表超過9,000萬美元的投資，且均按預算並依進度推進。

We have a number of exciting opportunities that will more than fill our pipeline proceeding through the predevelopment stage. We are confident that these will be ready to be launched later this year. While it would be premature to announce these projects by name, I can reiterate the attributes that we are targeting in new product for our portfolio.

我們有多項令人振奮的機會，足以讓我們的管線在前期開發（predevelopment）階段持續滿載。我們有信心這些專案將可於今年稍晚具備啟動條件。雖然現在公布專案名稱仍嫌過早，但我可以重申我們在投資組合新產品上所鎖定的特性。

Class A assets with a high barrier to entry, diversification primarily targeting the Raleigh-Durham, Charlotte, and Baltimore markets, strategic expansion at Town Center, maintenance of our traditional 150 to 200 basis-point development spread through public-private partnerships, cost control through our operating companies, and premier site selection, and joint venture opportunities utilizing our unique ability to co-develop and construct.

具高進入門檻的A級資產；分散化策略主要鎖定Raleigh-Durham、Charlotte與Baltimore市場；在Town Center的策略性擴張；透過公私合夥維持我們傳統的150至200個基點開發利差（development spread）；透過旗下營運公司進行成本控管；優質基地選址；以及運用我們獨特的共同開發與承建能力所帶來的合資（joint venture）機會。

We look forward to culminating negotiations on several lease opportunities over the next two quarters and updating you accordingly. With that, I turn the call over to Mike and then we will take your questions. Mike?

我們期待在未來兩個季度完成數項租賃機會的談判，並適時向各位更新。接下來我把電話交給Mike，之後我們將回答各位的提問。Mike？

Thanks, Lou, and good morning. Today I want to cover the highlights of the quarter, including thoughts on our balance sheet, and I will wrap up with our 2015 guidance. This morning, we reported FFO of $0.22 per share and normalized FFO of $0.24 per share, which was better than our expectations. This was due to increased profit from third-party construction business and robust multifamily leasing.

謝謝你，Lou，各位早安。今天我想說明本季重點，包括對我們資產負債表的看法，最後也會總結我們2015年的財測指引。今天早上，我們公布每股FFO為0.22美元、每股標準化FFO（normalized FFO）為0.24美元，優於我們的預期。主要原因是第三方營造業務利潤增加，以及多戶住宅出租表現強勁。

Please see page 10 of the supplemental for the normalized FFO calculation which this quarter excludes debt extinguishment losses, property acquisition costs, impairment charges and mark-to-market adjustments for interest rate derivatives.

請參閱補充資料第10頁的標準化FFO計算方式；本季計算中排除了債務清償損失、物業收購成本、減損費用，以及利率衍生性商品的按市價評價（mark-to-market）調整。

Our current quarter FFO also excludes the gain from the Whetstone sale. This is the third quarter in a row in which we've had a gain on sale. As we've discussed in the past, asset sales will continue to be an element of future shareholder value creation.

我們本季的FFO亦排除了出售Whetstone的處分收益。這是我們連續第三個季度出現出售收益。正如我們過去所討論，資產出售將持續成為未來創造股東價值的要素之一。

We had another strong quarter of same-store NOI growth. Same-store NOI was positive 3.2% on a GAAP basis and positive 5.4% on a cash basis compared to the second quarter of 2014. We added five development projects to our core operating portfolio. These properties are now stabilized and have been removed from the development pipeline. They are Greentree Shopping Center, Oceaneering, two Commonwealth of Virginia buildings, and Sandbridge Commons Shopping Center.

同店NOI成長本季再度表現強勁。與2014年第二季相比，同店NOI在GAAP基礎下成長3.2%，在現金基礎下成長5.4%。我們將五個開發專案納入核心營運投資組合。這些物業目前已達穩定狀態，並已自開發管線中移除，分別為Greentree Shopping Center、Oceaneering、兩棟維吉尼亞州政府大樓，以及Sandbridge Commons Shopping Center。

At the end of the quarter, our core operating portfolio occupancy was 95.3%. Office came in at 94.6%, retail at 95.6%, and multifamily at 96.5%. These occupancy numbers include the five development properties just added to our core operating portfolio.

截至本季末，我們核心營運投資組合的整體出租率為95.3%。其中，辦公為94.6%，零售為95.6%，多戶住宅為96.5%。上述出租率數據已包含本季新增至核心營運投資組合的五項開發物業。

In our portfolio summary on page 14 of the supplemental, you will see we have summarized all properties, our core operating portfolio, as well as those from the development pipeline that are delivered but not yet stabilized in one place. We added a new column this quarter noting which properties are unencumbered.

在補充資料第14頁的投資組合摘要中，您將看到我們將所有物業、核心營運投資組合，以及已交付但尚未穩定的開發管線物業彙整於同一處。本季我們新增一欄，標示哪些物業為無擔保（unencumbered）。

On the construction front, we reported a segment gross profit in the second quarter of $1.8 million on revenue of $47 million. The construction company had an excellent quarter. It's one of the reasons the quarter was better than expected. As we announced earlier, our construction company will serve as the general contractor of two oceanfront hotels that include over 300 rooms, a parking garage and a retail space. We expect to start construction late summer.

在營造方面，我們第二季該部門營業毛利為180萬美元，營收為4,700萬美元。營造公司本季表現非常出色，這也是本季優於預期的原因之一。如先前所宣布，我們的營造公司將擔任兩家海濱飯店的總承包商（general contractor），該專案包含超過300間客房、停車樓以及零售空間。我們預期將於夏末開始施工。

While the first phase of any construction project always carries the most variability from a timing standpoint, we expect construction efforts to be in full swing in the back part of 2015, and construction completion expected in the spring of 2017. This assumption is included in our construction company gross profit guidance. At the end of the second quarter, the Company had a third-party construction backlog of $195.5 million.

雖然任何營造專案的第一階段在時程上通常具有最高的不確定性，我們仍預期施工工作將在2015年下半年全面展開，並預計於2017年春季完工。此一假設已納入我們對營造公司部門毛利的指引之中。截至第二季末，本公司第三方營造在手訂單（backlog）為1.955億美元。

Now turning to our balance sheet. In the second quarter, we continued to take actions to enhance flexibility and strengthen our balance sheet. We refinanced Smith's Landing with a new $21.6 million 4.05% fixed rate loan that matures in 2035. In addition after quarter end, we closed on a $50 million construction loan to fund the Johns Hopkins Village project.

現在轉到我們的資產負債表。第二季我們持續採取行動，以提升財務彈性並強化資產負債表。我們以一筆新的2,160萬美元、4.05%固定利率、2035年到期的貸款，為Smith's Landing進行再融資。此外，在季後我們完成了一筆5,000萬美元的建築貸款，用以資助Johns Hopkins Village專案。

Since the inception of the ATM continuous equity program last quarter, we raised $3.8 million of gross proceeds at an average price of $10.50 per share. The ATM program will be one of multiple options at our disposal to raise capital to fund our development activities. We expect to continue to utilize in this program to raise equity at a similar place, assuming favorable market conditions.

自上季啟動ATM（隨市發行）持續性股權計畫以來，我們以每股平均10.50美元的價格，募集到380萬美元的總募集款。ATM計畫將是我們用以籌措資本、支持開發活動的多種選項之一。在市場條件有利的前提下，我們預期將持續運用此計畫，以類似的價格水準募集股權資金。

As of June 30, our fixed-rate debt including swap locks was 55% of our total debt. Including interest rate caps, 83% of our debt was fixed or hedged. As you can see from our outstanding debt summary on page 11 of our supplemental, we had total outstanding debt of $387 million, including $83 million outstanding under the $115 million revolving credit facility. Our debt metrics continue to be in line with our corporate goals.

截至6月30日，我們的固定利率負債（含利率交換鎖定）占總負債的55%。若再納入利率上限（caps），則有83%的負債為固定或已避險。如同你們在補充資料第11頁的未償債務摘要所見，我們未償債務總額為3.87億美元，其中包括在1.15億美元循環信用額度下已動用的8,300萬美元。我們的負債指標仍與公司的目標一致。

I want to spend a couple of minutes discussing the details of the Columbus Village acquisition. The acquisition was funded by the assumption of $8.8 million of debt and the issuance of 1.275 million operating partnership units. One million of these units will not earn or accrue dividends for 24 months; 275,000 units will not earn or accrue dividends for 30 months.

我想花幾分鐘說明Columbus Village收購案的細節。該收購案的資金來源為承接880萬美元的債務，以及發行127.5萬個營運合夥（Operating Partnership，OP）單位。其中100萬個單位在24個月內不會支付或累計股利；27.5萬個單位在30個月內不會支付或累計股利。

The interim dividends that would have been paid at the current dividend rate equate to $1.8 million. We view this $1.8 million as a reduction in the purchase price of the center. It could also be viewed as higher valuation of the OP units. The 24-to-30-month period at dividends that will not be paid also coincides with potential NOI growth at the center. Even though dividends are not being paid on these units, the total 1.275 million units will be included in our diluted share count.

若以目前股利率計算，原本應支付的過渡期股利約為180萬美元。我們將這180萬美元視為該中心購買價格的減項；也可視為OP單位的較高估值。24至30個月不支付股利的期間，也與該中心可能的NOI成長相吻合。即使這些單位不支付股利，全部127.5萬個單位仍將納入我們的稀釋後股數計算。

Now let me walk you through our full 2015 guidance. This morning we raised 2015 full-year normalized FFO guidance now $0.88 to $0.91 per share, from our previous guidance of $0.86 to $0.90 per share. We are increasing guidance due to the performance of third-party construction business, multifamily leasing, lower G&A expenses, and interest savings due to changes in the LIBOR or yield curve.

接著我帶各位看我們2015年全年指引。今天早上我們將2015年全年標準化FFO指引上調至每股0.88至0.91美元，先前指引為每股0.86至0.90美元。我們上調指引主要因第三方營建業務表現、多戶住宅租賃、較低的G&A費用，以及因LIBOR或殖利率曲線變動帶來的利息節省。

Our 2015 estimates are predicated on the following: GAAP NOI in the $53.3 million -- $53.8 million range, including approximately $8 million from the development pipeline projects; third-party construction company gross profit in the range of $5.4 million to $5.9 million; general administrative expenses in the $8.1 million to $8.4 million range; interest expense in the $13.3 million to $13.8 million range.

我們對2015年的估計基於以下假設：GAAP NOI為5,330萬至5,380萬美元（其中約800萬美元來自開發管線專案）；第三方營建公司毛利為540萬至590萬美元；一般及行政費用為810萬至840萬美元；利息費用為1,330萬至1,380萬美元。

Midpoint of the range reflects the assumption factors and the LIBOR forward yield curve, which anticipates increase in LIBOR during the year, and 41.1 million weighted average shares and OP units outstanding which includes the units issued for the acquisition of Columbus Village.

區間中位數反映上述假設因素以及LIBOR遠期殖利率曲線（預期LIBOR於年內上升），並假設加權平均流通股數與OP單位為4,110萬，包含為收購Columbus Village所發行的單位。

This guidance excludes any impact from future acquisitions with the exception of the second Whetstone replacement property, dispositions or other capital market activity with the exception of continuing the ATM program consistent with the second quarter, assuming favorable market conditions.

本指引不包含未來收購的任何影響（惟第二個Whetstone替換資產除外）、處分或其他資本市場活動的影響（惟在市場條件有利下，持續以與第二季一致的節奏進行ATM計畫除外）。

Before we turn to Q&A, I would like to make a few comments about the third quarter. After quarter end, we closed on a Myrtle Beach shopping center, which was purchased using private proceeds from the Whetstone sale. We expect to close on Providence Plaza, the second swap property, towards the end of this quarter which is later than we expected.

在進入Q&A之前，我想就第三季補充幾點。季後我們完成了Myrtle Beach購物中心的交割，該資產係以Whetstone出售所得的私募款項購買。我們預期將在本季末左右完成第二個交換資產Providence Plaza的交割，時間比我們原先預期更晚。

I'll now turn the call back to Lou.

接下來我把電話交回給Lou。

Thank you, Mike, and thank you for your time this morning and your interest in Armada Hoffler. Operator, we'd like to begin the question-and-answer session.

謝謝你，Mike，也謝謝各位今天早上的時間以及對Armada Hoffler的關注。接線員，我們想開始問答環節。

(Operator Instructions). John Guinee, Stifel.

（接線員指示）。Stifel的John Guinee。

John Guinee, here. Thank you. A couple questions. First, obviously, you are hitting on all 8 cylinders now. Congratulations. If I look at the acquisition last list, I think Providence Plaza was a 1031 exchange; Myrtle Beach 1031 exchange; Columbus Village OP unit deal; Dimmock Square in Colonial Heights OP unit deal. The two assets in Maryland, were those OP units, 1031s or neither?

我是John Guinee。謝謝。有幾個問題。第一，很明顯你們現在各方面都運轉得非常順。恭喜。如果我看最近的收購清單，我想Providence Plaza是1031交換；Myrtle Beach是1031交換；Columbus Village是OP單位交易；位於Colonial Heights的Dimmock Square也是OP單位交易。那在馬里蘭州的兩個資產，是OP單位、1031交換，還是兩者都不是？

It's a combination of the two, John. Thanks for the question. One of the assets involved OP units, the other was acquired debt free. Eric, is there anything to add to that?

John，是兩者的組合。謝謝你的問題。其中一個資產涉及OP單位，另一個則是以無負債方式收購。Eric，你還要補充嗎？

No. One of them was use of Sentara proceeds, 1031 proceeds, so in line and consistent with the other examples that you are familiar with, John.

沒有。其中一個是使用Sentara的款項，也就是1031交換所得，因此與你熟悉的其他例子一致，John。

Just one clarification. On one of those centers, the seller actually changed their mind at the last minute and actually took back stock instead of OP units because they wanted to trigger their tax.

再澄清一點。其中一個中心的賣方在最後一刻改變主意，因為他們想觸發課稅，所以實際上改為收回股票而不是OP單位。

Okay. And then the second, what have you done since the IPO on your dividend and what's your dividend thoughts right now?

好的。第二個問題，自IPO以來你們在股利方面做了什麼調整？你們目前對股利的想法是什麼？

We went from -- at the IPO we started with a $0.16 per quarter dividend. We raised this past year to $0.17 per quarter. As I think you can tell, our payout ratio is dropping nicely. We are going to try and keep that in a range, and as it drops I think you would expect that one of the ways we are going to return value to shareholders is to evaluate raising the dividend again.

我們在IPO時以每季0.16美元的股利起步。過去一年我們把它提高到每季0.17美元。如你們所見，我們的配息率正在穩步下降。我們會努力把配息率維持在一個區間內；隨著配息率下降，我想你們可以預期，我們回饋股東價值的方式之一，就是評估再次提高股利。

Great, okay. Hey, thank you very much.

很好，好的。非常感謝。

Dave Rodgers, Baird.

Baird的Dave Rodgers。

Maybe a multipart question. I think year to date you've spent about $40 million on acquisitions and on dispositions; and following on John's question, obviously realize there are some 1031s in there. But you have $75 million left to spend this year and you're talking about a building pipeline.

我可能有一個多段式問題。我想今年迄今你們在收購與處分上大約花了4,000萬美元；延續John的問題，顯然其中有一些是1031交換。但你們今年還有7,500萬美元可投入，而且你們也在談一個建設管線。

Can you kind of talk about various funding sources; how much do you plan to sell in the second half; how much can you tap on the ATM and what your thoughts are to continue to help support the growth of the business?

你能否談談各種資金來源；下半年你們計畫出售多少資產；ATM可以動用多少，以及你們對於持續支持業務成長的想法？

Thanks, Dave. I'll try and take that one at a time. As Mike and I mentioned a couple of quarters ago, we have a long history of selling these single user assets from time to time, and we had a half a dozen or so of those in the portfolio. With the announcement this morning of what we are doing with Oceaneering, I think you can expect that to be one of the vehicles that we will use for funding going forward.

謝謝，Dave。我會盡量逐一回答。正如Mike和我在前幾季提到的，我們長期以來不時會出售這些單一使用者資產，而我們投資組合中大約有半打左右這類資產。隨著今天早上我們宣布對Oceaneering的安排，我想你可以預期，這將是我們未來用於資金籌措的工具之一。

With regard to the ATM, basically we expect, as Mike said, to stay in that range that we've been in for a quarter or so. We want to be very cautious with it. It's a $50 million program. We'd like to think that the remaining $46 million, because it's going to be a lot closer to our NAV, but we are going to be averaging in on A cautious basis as market conditions allow.

至於ATM，基本上如Mike所說，我們預期會維持在過去一季左右的那個區間。我們會非常謹慎。這是一個5,000萬美元的計畫。我們希望剩餘的4,600萬美元能在更接近我們的NAV（淨資產價值）時進行，但我們會在市場條件允許下，以審慎的方式分批平均投入。

With the new projects that are lining up, we've got some really exciting stuff; we can't wait to talk about it. There are opportunities through joint ventures to help us with funding there. Mike and I are very confident where the balance sheet sits today. There is a tremendous amount of NOI yet to come online that are going to keep our metrics in line. So we feel pretty comfortable with where we sit.

至於正在排隊的新專案，我們有一些非常令人振奮的案子，迫不及待想跟大家分享。透過合資企業也有機會協助我們在資金面上取得支持。Mike和我對目前資產負債表的位置非常有信心。還有大量的NOI將陸續貢獻，並使我們的指標維持一致。因此我們對目前的狀況相當放心。

And maybe a follow-up to that from Mike with regard to current capital. I guess assuming no dispositions or no ATM issuance, how comfortable are you on the capital front in terms of what your runway is for spend here in the second half and early 2016?

另外可能要請Mike補充一下關於目前資本的部分。也就是說，假設沒有處分、也沒有透過ATM發行，你們在資本面有多大把握？就今年下半年以及2026年初的支出而言，你們的資金跑道大概有多長？

Dave, we are comfortable with it. You can see what kind of NOI and EBITDA growth we are getting here. So that obviously is going to support more debt. And as we've said, we like the core debt, core EBITDA, to be in the 6 times something range and total debt to EBITDA in the 8 times something range. That's where we currently sit.

Dave，我們對此感到放心。你可以看到我們在這裡取得的 NOI 與 EBITDA 成長幅度。因此，這顯然將支撐更高的負債水準。正如我們所說，我們希望核心負債／核心 EBITDA 大約落在 6 倍左右，而總負債／EBITDA 大約落在 8 倍左右。這就是我們目前所處的位置。

And the way we look at things at the growth and EBITDA and the development spending of what we've released so far, it is not that big for the rest of the year. So we are comfortable where we sit today.

而且從我們對成長、EBITDA，以及截至目前已公布的開發支出來看，今年剩餘時間的規模並不大。所以我們對目前的位置感到安心。

Okay. I think in your prepared comments, you said something about a G&A benefit to earnings. Is that just better cost controls or is that more capitalized overhead, or did I not hear that right?

好的。我想在你們事先準備的發言中，你提到一般及行政費用（G&A）對獲利有正面效益。那只是更好的成本控管，還是更多的費用資本化（capitalized overhead），或者是我聽錯了？

No, we have lowered the range and when we put out our G&A budget at the beginning of the year, obviously we had to make some assumptions what we were going to do with legal, accounting and personnel. And it's not -- we are coming in lower than the higher that we would have expected.

沒有，我們是下調了區間。年初我們提出 G&A 預算時，顯然必須對法律、會計與人員配置做一些假設。而實際上——我們的落點比原先預期的較高水準要低。

Obviously, the big pieces for us and what's been driving the higher G&A over the past year is mainly accounting, and as we start the Sarbox compliance ramp up. So that's the biggest piece we had to get our hands around and keep control of.

顯然，對我們而言最大的項目、也是過去一年推升 G&A 的主因，主要是會計費用，尤其是我們開始推進 Sarbox（薩班斯法案）合規的爬坡期。因此，這是我們必須掌握並加以控管的最大部分。

Last question for me. And Lou, I ask every quarter, but I will ask again. In terms of Main Street office, the traffic you are seeing there, I know this is a project you are hoping to have a couple years worth of inventory out of, but I'm sure the rest of us would like to see it leased up. So what's the update on that?

我最後一個問題。Lou，我每一季都問，但我還是再問一次。就 Main Street 辦公大樓而言，你們看到的那裡的人流情況如何？我知道這是你們希望能提供好幾年庫存的專案，但我相信我們其他人也希望看到它被租滿。所以最新進度是什麼？

Dave, as we have talked many times before, that building is positioned as the premier building in the 1.8 million person MSA, and as such it's going to take rent payers at the ultimate high of the market. We've targeted three or four firms that have rollovers in 2016, that we feel very comfortable will ultimately locate in 4525.

Dave，正如我們之前多次談到的，那棟大樓被定位為該 180 萬人口 MSA（都會統計區）中的頂級大樓，因此它將以市場最高端的租金水準來吸引付租戶。我們鎖定了三到四家在 2016 年有租約到期（rollovers）的公司，我們非常有信心他們最終會進駐 4525。

We have had a tremendous amount of tours go through. But as we said before, this is a building that 80% or so of the market cannot consider; that it takes those firms that need the presence and see the value in being in the best address in town. So we feel pretty good about where it sits.

我們已經有大量的帶看（tour）。但如同先前所說，這是一棟約有 80% 的市場無法考慮的建物；它需要那些需要門面、並看得到「全城最佳地址」價值的公司。因此，我們對目前的狀況感覺相當不錯。

We also just this past, I guess, couple weeks ago, the last of the ground floor tenants opened Tupelo Honey Cafe. So the retail now with all 30,000 feet is off and running and doing great sales.

另外，就在過去——我想是幾週前——最後一位一樓租戶 Tupelo Honey Cafe 也開幕了。所以零售部分現在 30,000 平方英尺已全部啟動，銷售表現非常好。

All right, great. Thanks for the update.

好，太好了。謝謝更新。

Craig Kucera, Wunderlich.

Craig Kucera，Wunderlich。

Thanks. I know you mentioned you were brokering Oceaneering for sale, and right now it seems that you are getting some of the more attractive interest and bids coming on your multifamily. You had an unsolicited bid for Whetstone.

謝謝。我知道你提到你們正在居中協助出售 Oceaneering，而目前看起來，你們多戶住宅（multifamily）資產反而收到一些更具吸引力的興趣與出價。你們還收到了對 Whetstone 的非邀約出價。

Does it make sense to sell out of multifamily given the current environment, reinvest into retail or mixed use, or do you want to maintain your multifamily exposure?

在目前的環境下，賣出多戶住宅是否合理，然後把資金再投到零售或複合式用途（mixed use）？還是你們想維持多戶住宅的曝險？

That's a great question, Craig. I'm glad you brought that up. We talked a lot at our IPO as well as on our subsequent road trips about our need to stay diversified. When you do the niche that we are in, the public-private partnerships, and when you approach cities about remaking their skylines, a big part of that is multifamily. Heads in beds are required in order to attract retail and office and basically a general sense of place.

這是個很好的問題，Craig。我很高興你提出來。我們在 IPO 以及後續的路演中談了很多關於維持多元化的必要性。當你做我們這種利基——公私合夥（public-private partnerships）——並且你與城市洽談重塑天際線時，其中很大一部分就是多戶住宅。要吸引零售與辦公，並營造整體的場域感（sense of place），必須要有足夠的居住人口（heads in beds）。

So in the case of the two assets at Town Center, for instance, those are integral to the success of the overall 1 million square feet that we have for lease here. So it's unlikely that our core multifamily work, that we would get rid of that. I suspect it would command quite a number. But the short-term gain would be offset by what we view as long-term value disruption.

因此，以 Town Center 的兩項資產為例，它們對我們在此可出租的整體 100 萬平方英尺成功與否至關重要。所以我們不太可能把核心的多戶住宅業務賣掉。我猜它確實能賣到相當可觀的價格，但短期收益會被我們視為長期價值受損所抵銷。

So I don't see that happening. However, as you can see by our short history, we are not afraid to redeploy capital in non-core assets. So to the extent that those are multifamily projects, which is quite possible, then I think you will see further dispositions in the future as we take advantage of that market that you mentioned.

所以我不認為那會發生。不過，如你從我們短短的歷史所見，我們並不害怕在非核心資產上重新配置資本。因此，如果那些非核心資產剛好是多戶住宅專案——這很有可能——那麼我認為未來你會看到更多處分案，因為我們會把握你提到的那個市場機會。

Got it. And then also I wanted to get a little bit more detail on the structure of the Columbus Village acquisition where you had a buyer not taking dividends for a number of months.

了解。然後我也想更詳細了解 Columbus Village 收購案的結構，你們提到買方有好幾個月不領股利。

Are you finding that structure common where the seller is willing to avoid income for a while, or do you think this is probably more likely a one-timer?

你們是否發現這種結構很常見，也就是賣方願意暫時不拿收益？還是你認為這比較可能是一次性的？

It's really -- I can answer your question in a number of different ways. I don't think it's typical for people to take millions and millions of dollars in stock or OP units as you look across the broad universe of REITs. I think that -- and if I may be so bold -- we have a tremendous reputation in this region that has been built over 35 years from the inception from Dan Hoffler.

這個——我可以用幾種不同方式回答。我不認為在整個 REIT 產業的廣泛範圍內，人們通常會拿數百萬、數千萬美元的股票或 OP 單位（Operating Partnership units）作為對價。我認為——如果我可以大膽地說——我們在這個區域擁有極佳的聲譽，這是自 Dan Hoffler 創立以來 35 年所建立的。

There's a lot of people that want to be a part of that story and feel very comfortable with us managing their wealth. You have seen that manifest itself a few times, and now you're seeing it in a big way at Columbus Village. This is someone that did a tremendous amount of research on our Company, actually some of it surreptitiously, sending some money managers in to interview us.

有很多人想成為這個故事的一部分，也非常放心把他們的財富交由我們管理。你已經看過這種情況出現過幾次，而現在在 Columbus Village 你又看到它以更大的規模呈現。這位賣方對我們公司做了大量研究，其中有些甚至是私下進行的，派了一些資產管理人來訪談我們。

So I don't think it's typical, but I think you will see it continue with us in this region. It's a great tax planning tool, but tax planning only works if you feel comfortable with the investment that you are making. You have to make the money before you've got to worry about paying the tax, right.

所以我不認為這是典型情況，但我認為在這個區域，你會持續看到我們有這樣的交易。這是一個很好的稅務規劃工具，但稅務規劃只有在你對所做的投資感到安心時才有意義。你得先賺到錢，才需要擔心繳稅，對吧。

So I see that continuing for us. I think it's a great venue for us, and actually we've got several things in development that may involve additional taking of stock.

所以我認為這會持續發生在我們身上。我覺得這對我們是很好的管道，而且其實我們手上有幾個開發案，可能會涉及進一步以股票作為對價。

The way this was structured, just so everybody knows, as you might expect we've created quite a market around Town Center for the adjacent real estate. So you are talking about cap rates that are in the low 6%s and sometimes high 5%s. We bought this center with an eye towards redevelopment. We feel very comfortable that we will ultimately be able to get this well into the 7s once we do redevelopments. In fact, we were paying the owner to not take advantage of the immediately available upside. All of the tenants that are in there are looking to re-up for a long-term basis at a significant bump. We are effectively paying -- paid the owner to not do that. And part of the rationale of the delayed dividends was to give us the time to evaluate whether or not we could do something even better. And if not, we will just take advantage of what was being offered.

這筆交易的結構是這樣的，讓大家都知道：如你所料，我們在 Town Center 周邊的相鄰不動產已經打造出相當活絡的市場。所以你談的是 6% 初頭、甚至有時 5% 高段的資本化率（cap rates）。我們買下這個中心時，是以重建（redevelopment）為目標。我們非常有信心，一旦完成重建，我們最終能把它提升到 7% 以上。事實上，我們等於是付錢給原屋主，讓他不要立刻去享受當下可得的上行空間。裡面的所有租戶都希望以長期條件續租，而且租金會有顯著上調。我們實際上是——已經付錢給原屋主不要去做那件事。而延後發放股利的部分理由，是給我們時間評估是否能做得更好；如果不能，我們就會直接把既有的機會加以利用。

Okay, great. Thanks, appreciate the color.

好的，很棒。謝謝，這些補充很有幫助。

Okay. Well, thank you all for listening to the call. We appreciate your interest in our Company, and we look forward to updating you on our activities and results in the coming quarters. Take care.

好的。那麼，感謝各位收聽本次電話會議。我們感謝各位對本公司的關注，也期待在接下來的季度向各位更新我們的活動與成果。保重。