AH Realty Trust, Inc (AHRT) 2015 Q3 法說會逐字稿

Welcome to Armada Hoffler's third-quarter 2015 earnings conference call. At this time all participants are in a listen-only mode.

歡迎參加 Armada Hoffler 2015 年第三季財報電話會議。目前所有與會者均處於僅收聽模式。

(Operator Instructions)

（接線員指示）

As a reminder, this conference call is being recorded today, Tuesday, November 3, 2015. I will now turn the call over to Michael O'Hara, Chief Financial Officer at Armada Hoffler. Please go ahead.

提醒各位，本次電話會議將於今日（2015 年 11 月 3 日，星期二）錄音。現在我將把電話交給 Armada Hoffler 財務長 Michael O'Hara。請開始。

Good morning and thank you for joining Armada Hoffler's third-quarter 2015 earnings conference call and webcast. 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.

各位早安，感謝您參加 Armada Hoffler 2015 年第三季財報電話會議與網路直播。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，他將可供回答問題。

The press release announcing our third-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 December 3, 2015. The numbers to access the replay are provided in the earnings press release.

本公司今早已發布宣布第三季盈餘的新聞稿，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，並可使用至 2015 年 12 月 3 日。存取重播的電話號碼已載於盈餘新聞稿中。

For those who listen to the rebroadcast of this presentation we remind you that the remarks made herein are as of today November 3, 2015 and will not be updated subsequent to this initial earnings call.

對於收聽本次簡報重播的聽眾，我們提醒您：本簡報中的發言係截至今日（2015 年 11 月 3 日），且在本次初次財報電話會議之後不會更新。

During this call we will make forward-looking statements including statements related to the 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. 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.

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、收購與處分的影響、營造業務、投資組合表現與融資活動相關的陳述，以及對前景的評論。提醒聽眾注意，這些陳述受若干風險與不確定性影響，其中許多難以預測，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 risk factors discussed in our press release this morning and in documents we have filed with or furnished to the SEC.

這些風險與不確定性可能導致實際結果與我們目前的預期存在重大差異。我們建議聽眾查閱今早新聞稿以及我們向 SEC 提交或提供的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 FFO。這些非 GAAP 指標的定義，以及與最可比 GAAP 指標的調節表，均收錄於季度補充資料包中，並可於我們網站 www.ArmadaHoffler.com 取得。

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

現在我想把電話交給我們的執行長 Lou Haddad。Lou？

Thank you Mike. Good morning and thank you for joining us today.

謝謝 Mike。各位早安，感謝今天加入我們。

As you can see from this morning's press release we've had another solid quarter that ended with an exciting new announcement about our pipeline. Not only are we seeing continued quarter-over-quarter strength this year in our results and metrics but we also continue to backfill our pipeline with high-quality institutional grade products located in some of the best locations in the Mid-Atlantic.

如各位從今早的新聞稿所見，我們又交出一個穩健的季度，並以一項關於我們管線的令人振奮的新公告作結。今年我們的業績與各項指標持續呈現季對季的強勁表現，同時我們也持續以高品質、機構級產品補充管線，這些產品位於中大西洋地區一些最優質的地段。

With sustained profitability in our third-party construction business, stabilization of recently delivered multi-family projects and continued capital recycling we're once again able to raise our guidance for the year.

隨著我們第三方營造業務維持獲利、近期交付的多戶住宅專案趨於穩定，以及持續進行資本循環再投入，我們再次得以上調本年度的財測指引。

Regarding this morning's announcement on Point Street Apartments in Baltimore I will spend a few minutes towards the end of my remarks to discuss some details of this new investment. This opportunity once again highlights the benefits of being a vertically integrated full-service real estate Company that not only creates value beyond the traditional buy and hold real estate investment strategy but allows for flexibility and structuring deals that best leverages and combines our various capabilities. We believe that our unique business model continues to deliver superior value to our shareholders.

關於今早對巴爾的摩 Point Street Apartments 的公告，我將在發言末段花幾分鐘說明這項新投資的一些細節。此一機會再次凸顯我們作為垂直整合、全方位服務的不動產公司之優勢：不僅能在傳統「買入並持有」的不動產投資策略之外創造價值，也能在交易結構上更具彈性，以最佳方式運用並結合我們的多項能力。我們相信，我們獨特的商業模式將持續為股東帶來更優異的價值。

I will now cover a few highlights from last quarter as well as recent developments and then turn the call over to Mike O'Hara to discuss the quarterly results in detail. We're pleased to report FFO per share of $0.25 and normalized FFO per share of $0.26 which is a reflection of the tremendous quarter we had. In addition we have once again raised both the top and bottom ends of our guidance range, resulting in 2015 full-year normalized FFO of $0.91 to $0.93 per share.

接下來我將回顧上一季的幾項重點與近期進展，然後把電話交給 Mike O'Hara，請他詳細說明季度業績。我們很高興報告每股 FFO 為 0.25 美元、每股標準化 FFO 為 0.26 美元，反映出我們本季表現極為出色。此外，我們再次上調指引區間的上緣與下緣，使 2015 年全年每股標準化 FFO 指引為 0.91 至 0.93 美元。

Better than expected third-party construction profit and multi-family occupancy affected our outlook for this quarter's guidance range and contributed to this upward revision. At quarter-end occupancy across the core portfolio was 95.6% which continues to be within our targeting range. As we discussed last quarter, both Encore and Liberty Apartments attained 80% occupancy with continued upward momentum throughout the quarter and thus are both now stabilized and included in our multi-family occupancy figures.

優於預期的第三方營造利潤與多戶住宅入住率影響了我們本季指引區間的展望，並促成此次上修。季末核心投資組合整體入住率為 95.6%，持續落在我們的目標區間內。如同我們上季所討論，Encore 與 Liberty Apartments 皆達到 80% 入住率，且整季持續上升，因此兩者目前均已穩定，並已納入我們的多戶住宅入住率數據。

We expect the multi-family occupancy metric in the near future to return to previous levels as lease up at these two properties is finalized in the coming quarters. In fact, as of today Liberty is nearly 100% occupied and Encore is approaching 90%.

我們預期在未來不久，多戶住宅入住率指標將隨著這兩處物業在接下來幾季完成招租而回到先前水準。事實上，截至今日，Liberty 的入住率已接近 100%，Encore 也正逼近 90%。

As you might expect, we are pleased with the performance and stability of the multi-family sector of our business. Our success in leasing and the strength of our overall portfolio is evidenced by an increase in quarterly GAAP and cash same-store NOI which makes five consecutive quarters of significant same-store NOI growth.

如各位所料，我們對多戶住宅業務部門的表現與穩定性深感滿意。我們在招租上的成功以及整體投資組合的強勁，反映在季度 GAAP 與現金同店 NOI 的提升，這也使同店 NOI 顯著成長連續達到五個季度。

With regard to stabilized assets, we continue to deliver on our promise to actively manage our portfolio while mitigating risk and proactively managing our balance sheet. Building off the previously announced disposition of Whetstone Apartments and the partial use of those sales proceeds to purchase Socastee Commons last quarter we utilized the remainder of the proceeds to close on the acquisition of Providence Plaza for $26.2 million during the third quarter.

就已穩定資產而言，我們持續履行承諾，積極管理投資組合，同時降低風險並主動管理資產負債表。在先前公告處分 Whetstone Apartments，並於上季將部分出售所得用於收購 Socastee Commons 的基礎上，我們在第三季運用其餘出售所得，以 2,620 萬美元完成收購 Providence Plaza。

To remind everyone, Providence Plaza is a 97% occupied 103,000 square-foot mixed-use complex located in the South Park submarket of Charlotte, North Carolina. This asset 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.

提醒各位，Providence Plaza 是一座 97% 入住、面積 103,000 平方英尺的複合式用途園區，位於北卡羅來納州夏洛特的 South Park 次市場。該資產於 2008 年興建，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。

This acquisition allows us to diversify 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.

此項收購使我們得以在夏洛特市場進一步分散布局，特別是在 South Park 次市場；該資產周邊的平均家庭收入超過每年 145,000 美元。這項複合式用途資產是 Armada Hoffler 投資組合極佳的補充。

Additionally, this site includes an undeveloped parcel of land that is owned for multi-family development. We've already begun our efforts to determine how the value of it this additional land can be best monetized for our shareholders and we'll keep you updated on our progress.

此外，該基地還包含一筆未開發土地，已持有作為多戶住宅開發之用。我們已開始評估如何將這筆額外土地的價值以最適方式變現以回饋股東，並將持續向各位更新進度。

The previously announced sale of the Oceaneering building located in Chesapeake Virginia closed at the end of October. And as expected the sale yielded a profit of approximately 20% on cost after only an eight-month holding period. Our intention is to reinvest the proceeds from the sale to create additional value for our shareholders while continuing our focus on asset quality and regional diversification.

先前公告位於維吉尼亞州切薩皮克的 Oceaneering 大樓出售案已於 10 月底完成交割。如預期，該出售在僅持有八個月後，即以成本基礎計算帶來約 20% 的利潤。我們的意圖是將出售所得再投資，以在持續聚焦資產品質與區域分散的同時，為股東創造額外價值。

In keeping with the theme of portfolio management, we discussed during our last earnings call the acquisition of Columbus Village which took place early during the third quarter of this year. The 65,000 square-foot retail asset adjacent to the town center of Virginia Beach is 100% leased and was purchased with an assumption of debt and the issuance of 1.275 million operating partnership units. This five-acre property is a prime target for redevelopment and ultimate integration into the dynamic town center environment. The strategic nature of this property fits squarely within our investment philosophy and is expected to create significant long-term value for our shareholders.

延續投資組合管理的主題，我們在上次財報電話會議中討論了今年第三季初完成的 Columbus Village 收購案。這項位於維吉尼亞海灘市鎮中心旁、面積 65,000 平方英尺的零售資產已 100% 出租；本次收購係透過承接債務並發行 127.5 萬個營運合夥單位完成。這筆五英畝的物業是重建並最終融入充滿活力的市鎮中心環境的首要標的。其策略性完全符合我們的投資理念，預期將為股東創造可觀的長期價值。

Lastly, as evidenced by our previous sales of single tenant assets such as the Virginia Natural Gas building, the Sentara office building and most recently the Oceaneering facility we are constantly assessing each individual asset with regard to its current and future value prospects. As many of you know we have been evaluating the risk reward equation of our Richmond Tower office building.

最後，正如我們先前出售單一承租人資產（例如 Virginia Natural Gas 大樓、Sentara 辦公大樓，以及最近的 Oceaneering 設施）所示，我們持續就每一項資產的當前與未來價值前景進行評估。許多人都知道，我們一直在評估 Richmond Tower 辦公大樓的風險報酬關係。

While it is a Class A institutional grade office building within Richmond's central business district with superb location and visibility, the NOI from this asset represents a meaningful percentage of the Company's total NOI from stabilized real estate. This size and the predominantly single tenant nature of the income stream has led us to the conclusion that our Company's better served by the redeployment of the equity in this building into other opportunities.

雖然該資產為位於里奇蒙中央商業區的 A 級、機構級辦公大樓，地點與能見度極佳，但其 NOI 佔公司已穩定不動產總 NOI 的比例相當可觀。由於其規模以及收入來源以單一承租人為主的特性，我們得出結論：將該大樓的股權重新部署至其他機會，將更有利於本公司。

Thus we have entered into a contract to sell this asset for $78 million which represents a 7.5% cap rate on a pro forma basis. Closing is subject to customary conditions including the seller's benefactory completion of due diligence.

因此，我們已簽訂合約以7,800萬美元出售該資產，按備考（pro forma）基礎計算相當於7.5%的資本化率（cap rate）。交割須符合慣常條件，包括賣方受益人完成盡職調查。

As such we have not yet fully evaluated how best to deploy this capital. However, our primary focal point will continue to be quality real estate, credit quality tenants and geographical diversification. We expect to reach a conclusion in the near future.

因此，我們尚未完全評估如何最佳部署這筆資金。然而，我們的主要重點仍將放在優質不動產、信用良好的承租戶以及地理多元化。我們預期將在不久的將來得出結論。

Having touched on asset management I now turn to our third-party construction business. We are pleased with the progress of the $170 million Exelon Tower in Baltimore's Harbor Point. The project is well underway and is proceeding as scheduled for the summer of 2016 completion.

談到資產管理後，我現在轉向我們的第三方營造業務。我們對巴爾的摩 Harbor Point 的1.7億美元 Exelon Tower 進展感到滿意。該專案進度良好，並按計畫朝2016年夏季完工推進。

Construction profits continue to outpace expectations and should now top $6 million for the full gear. While these stellar 2015 results will be difficult to sustain at this level the outlook for this segment of our business over the next two years is promising and we expect that 2016 will again skew towards the higher end of our historical range.

營造利潤持續超出預期，全年現在應可超過600萬美元。雖然這些亮眼的2015年成果很難在此水準維持，但未來兩年該業務部門的展望令人鼓舞，我們預期2016年將再次偏向我們歷史區間的高端。

During our last quarter I provided an update on our approach to maintaining a strong development pipeline. At that time Johns Hopkins Village and Lightfoot Marketplace were the remaining two undelivered projects in our pipeline. Both projects are on schedule for a midyear 2016 delivery.

在上一季，我就我們維持強勁開發案儲備（development pipeline）的作法提供了更新。當時，Johns Hopkins Village 與 Lightfoot Marketplace 是我們儲備中剩餘的兩個尚未交付專案。兩個專案皆按進度預計於2016年年中交付。

Notably leasing activity at the Harris Teeter anchored Lightfoot Marketplace has been robust and hence we have decided to initiate Phase 2 of the development which will include an additional 22,000 square feet. Ultimately this best-in-market center will encompass over 130,000 square feet.

值得注意的是，以 Harris Teeter 為主力店（anchored）的 Lightfoot Marketplace 招租活動相當強勁，因此我們決定啟動第二期開發，將新增22,000平方英尺。最終，這座市場領先的中心將涵蓋超過130,000平方英尺。

You will also notice in our supplemental that we have added a Brooks Crossing project to the development pipeline. Those of you who have followed us for a while will remember Brooks Crossing is a joint venture with the city of Newport News, Virginia to bring an urban mixed-use lowrise development to the inner-city.

您也會在我們的補充資料中注意到，我們已將 Brooks Crossing 專案加入開發案儲備。長期關注我們的各位會記得，Brooks Crossing 是我們與維吉尼亞州 Newport News 市的合資案，旨在為市中心帶來一個都市型複合用途低樓層開發。

While somewhat smaller than our typical engagement this project is a showcase for the broad array of abilities present in our Company. With groundbreaking late last year our construction Company is under contract with the municipality to build over $15 million in infrastructure and public facilities.

雖然規模略小於我們典型的承接案，但此專案展示了本公司所具備的廣泛能力。於去年底動工後，我們的營造公司已與市政府簽約，將興建超過1,500萬美元的基礎設施與公共設施。

We are also under contract to develop a $7 million police precinct that will be sold to the city upon completion. And finally we will develop for our own account a 38,000 square-foot mixed-use project that will be anchored by a long-term lease with a credit office tenant. Only a company with our broad based capabilities could take full advantage of these diverse opportunities.

我們也已簽約開發一座7,000萬美元的警察分局，完工後將出售給市政府。最後，我們將以自有帳戶開發一個38,000平方英尺的複合用途專案，並由一位信用良好的辦公室承租戶簽訂長期租約作為主力。只有像我們這樣具備廣泛能力的公司，才能充分把握這些多元機會。

And now to our exciting news of this morning. As I mentioned on our last conference call, we are focusing our development efforts on large Class A assets with a high barrier to entry. With the Baltimore Metropolitan area as well as major markets within the Carolinas being natural geographic points of expansion for our firm, this morning's announcement of our investment in the $93 million Point Street Apartments project allows us to take another significant step toward the next wave of growth for our Company.

接下來是今天早上的令人振奮消息。如同我在上次電話會議中提到的，我們正將開發重心放在進入門檻高的大型A級資產。由於巴爾的摩都會區以及卡羅萊納州內的主要市場是本公司自然的地理擴張點，今天早上宣布我們投資9,300萬美元的 Point Street Apartments 專案，使我們得以再向公司下一波成長邁出重要一步。

Our 20-plus year presence at the Baltimore waterfront has been predominantly comprised of third-party general contracting work valued in excess of $1 billion, most notably the Four Seasons Hotel, the Legg Mason world headquarters and the Waterfront Marriott. These engagements allowed us to develop many long-standing relationships that are now manifesting themselves in investment opportunities beyond the realm of pure construction. These relationships when combined with the multifaceted nature of our Company across both product type and capability provides for some unique opportunities.

我們在巴爾的摩濱水區20多年的布局，主要由第三方總承包工程構成，工程價值超過10億美元，最具代表性的包括四季酒店（Four Seasons Hotel）、Legg Mason 全球總部以及 Waterfront Marriott。這些合作使我們建立了許多長期關係，如今正轉化為超越純營造領域的投資機會。這些關係結合本公司在產品類型與能力上的多元面向，帶來一些獨特機會。

Point Street Apartments is an opportunity that arose from a multi-decade association with the principals of Beatty Development Group who control what we and many others consider to be the premier development track in the city and one of the best sites in the Mid-Atlantic.

Point Street Apartments 的機會源自我們與 Beatty Development Group 主要負責人長達數十年的合作關係；該團隊掌控著我們以及許多人認為是該市最頂尖的開發地段之一，也是中大西洋地區最佳基地之一。

Similar to the Town Center at Virginia Beach, Harbor Point is a mixed-use multi-asset development. Situated between the trendy historic Fells Point neighborhood and the dynamic Harboe East area offering spectacular unparalleled water views Harbor Point is anchored by the 900,000 square-foot mixed-use Exelon Tower that is currently being developed by Beatty Development Group and built by Armada Hoffler construction Company.

與維吉尼亞海灘的 Town Center 類似，Harbor Point 是一個複合用途、多資產的開發案。Harbor Point 位於時尚的歷史街區 Fells Point 與充滿活力的 Harbor East 區域之間，擁有壯觀且無與倫比的水景視野；其核心為目前由 Beatty Development Group 開發、並由 Armada Hoffler 營造公司承建的900,000平方英尺複合用途 Exelon Tower。

Point Street Apartments is expected to feature 289 units and 18,000 square feet of retail space. We have entered into an agreement with Beatty Development Group to collaborate on the Point Street project. The way we will participate demands some explanation but once again highlights the benefits of our integrated business model by emphasizing our ability to provide a platform for our partners that isn't easily replicated by other firms.

Point Street Apartments 預計包含289個住宅單位及18,000平方英尺的零售空間。我們已與 Beatty Development Group 達成協議，共同合作 Point Street 專案。我們參與的方式需要一些說明，但也再次凸顯我們整合式商業模式的優勢，強調我們能為合作夥伴提供一個其他公司不易複製的平台。

The structure consists of three separate agreements with Beatty Development. We will provide mezzanine financing up to $23 million which when combined with proceeds from a construction loan and the developer's equity will complete Beatty Development's capital stack.

此架構包含與 Beatty Development 的三份獨立協議。我們將提供最高2,300萬美元的夾層融資（mezzanine financing）；該融資結合建築貸款（construction loan）所得款項與開發商自有資本，將完成 Beatty Development 的資本結構（capital stack）。

We will have the option to purchase an 88% interest in the project at the developer's cost upon completion of the construction. And we will construct the building as a general contractor with a guaranteed maximum price construction contract.

在建築完工後，我們將擁有以開發商成本價購買該專案88%權益的選擇權。此外，我們將以總承包商身分承建該建築，並採用保證最高價（GMP）的施工合約。

By proceeding with the venture in this manner we do not stress our balance sheet during development and initial lease-up. We do recognize third-party construction fees and earn interest income on the mezzanine loan. Finally, the at-cost option to buy the 88% interest preserves the traditional development spread which we create on our development projects.

以此方式推進該合資案，可使我們在開發期間及初期招租（lease-up）階段不致使資產負債表承受壓力。我們將認列第三方營造費用並賺取夾層貸款的利息收入。最後，以成本價購買88%權益的選擇權，保留了我們在開發專案中所創造的傳統開發價差（development spread）。

As you might expect this structure and the services we are providing within it appeal to a number of other developers who control desirable sites and need strong partners. This structure is particularly well-suited to multi-family development and we are currently vetting a number of similar opportunities.

如您所料，這種架構以及我們在其中提供的服務，對多位掌握優質基地且需要強力合作夥伴的開發商具有吸引力。此架構特別適用於多戶住宅（multi-family）開發，我們目前正在審核多個類似機會。

Point Street Apartments when combined with our marquee project at Johns Hopkins as well as the 185,000 square feet added to the Company's portfolio from the two Maryland grocery anchored retail acquisitions will constitute a very meaningful presence for Armada Hoffler in Maryland, further diversifying ourselves into the broader Mid-Atlantic market. We believe that Armada Hoffler is the only REIT that provides investors the opportunity to benefit from all three profit centers in real estate.

Point Street Apartments 結合我們在 Johns Hopkins 的旗艦專案，以及公司透過兩筆馬里蘭州以雜貨主力店（grocery anchored）的零售收購所新增的185,000平方英尺資產，將使 Armada Hoffler 在馬里蘭州形成非常重要的布局，並進一步多元化至更廣泛的中大西洋市場。我們相信，Armada Hoffler 是唯一能讓投資人同時受益於不動產三大獲利中心的 REIT。

Number one, the ownership of income property which is where most REITs focus. Secondly, the profitable development of world-class properties at wholesale cost through either portfolio placement or for sale to recycle the capital at a gain. And in-house construction which not only generates substantial profit for third-party business but also controls cost and schedules in our development projects.

第一，收益型不動產的持有，這也是多數 REIT 的重點。第二，以批發成本（wholesale cost）開發世界級資產，並透過納入自有投資組合或出售以資本回收並實現收益。第三，內部營造能力，不僅為第三方業務創造可觀利潤，也能在我們的開發專案中控制成本與工期。

We believe that this third factor is unique to Armada Hoffler across the entire REIT universe. We will continue to execute across these profit centers to maximize the investment returns of our shareholders.

我們相信，第三項因素在整個 REIT 產業中對 Armada Hoffler 而言是獨一無二的。我們將持續在這些獲利中心上執行，以最大化股東的投資報酬。

And with that I will turn the call over to Mike and then we will take your questions. Mike?

接下來我把電話交給 Mike，然後我們將回答各位的問題。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.

謝謝 Lou，大家早安。今天我想說明本季重點，包括我們對資產負債表的看法，最後我會以2015年指引作結。

This morning we reported FFO of $0.25 per share and normalized FFO of $0.26 per share which is better than our expectation. This was due to the increased profit in third-party construction business, continued strong multi-family leasing and lower property expense. Please see page 10 of the supplemental for the normalized FFO copulation calculation which this quarter includes debt extinguishment losses, property acquisition cost, development and other pursuant cost and mark-to-market adjustments for interest rate derivatives.

今天早上我們公布每股 FFO 為0.25美元、每股標準化 FFO（normalized FFO）為0.26美元，優於我們的預期。這主要來自第三方營造業務利潤增加、多戶住宅持續強勁的出租表現，以及較低的物業費用。標準化 FFO 的調節計算請見補充資料第10頁；本季調整項目包括債務清償損失、物業收購成本、開發及其他相關成本，以及利率衍生性商品的按市價（mark-to-market）調整。

We had another strong quarter of same-store NOI growth. Same-store NOI was positive 2.9% on a GAAP basis and positive 5.7% on a cash basis compared to third quarter of 2014. We added two development projects to our core operating portfolio.

同店（same-store）NOI 成長本季再度強勁。與2014年第三季相比，同店 NOI 以 GAAP 基礎計為正成長2.9%，以現金基礎計為正成長5.7%。我們將兩個開發專案納入核心營運投資組合。

These properties are now stabilized and have been removed from the development pipeline. They are Encore Apartments and Liberty Apartments.

這些資產目前已達穩定（stabilized）狀態，並已自開發案儲備中移除。它們是 Encore Apartments 與 Liberty Apartments。

At the end of the quarter our core operating portfolio occupancy was 95.6%. Profit came in at 95.5%, retail at 96.2% and multi-family at 94.9%. Multi-family occupancy numbers declined this quarter due to the addition of Encore to the core operating portfolio.

在本季末，我們核心營運投資組合的出租率為 95.6%。辦公為 95.5%，零售為 96.2%，多戶住宅為 94.9%。本季多戶住宅出租率數據下滑，係因 Encore 納入核心營運投資組合所致。

From a construction front we reported a segment gross profit in the third quarter of $2.1 million on revenue of $54 million. Construction Company had another excellent quarter, one of the reasons the quarter was better than expected.

就營建業務而言，我們第三季在營收 5,400 萬美元下，認列部門毛利 210 萬美元。營建公司再度繳出非常出色的一季，這也是本季表現優於預期的原因之一。

As we announced earlier our construction company signed a $94 million contract to build two Virginia Beach oceanfront hotels as well as retail and a garage. The owner of this project since decided to build the project in phases and delay the construction of one of the hotels. The contract was amended and reduced by $55 million to reflect this change.

如我們先前宣布，我們的營建公司簽署了一份 9,400 萬美元合約，將興建兩間位於維吉尼亞海灘（Virginia Beach）海濱的飯店，以及零售與停車場。該專案業主其後決定分期興建，並延後其中一間飯店的施工。合約已修訂，並因應此變更減少 5,500 萬美元。

The first phase of the project is under construction. Completion is expected in the spring of 2017.

該專案第一期正在施工中，預計於 2017 年春季完工。

At the end of the third quarter the Company had a third-party construction backlog of $118 million which includes the reduced contract I discussed.

截至第三季末，公司第三方營建在手訂單為 1.18 億美元，其中包含我剛才提到的已調降合約。

Now turning to our balance sheet. In the third quarter we continue to take action to enhance flexibility and strengthen our balance sheet. We continued to use the ATM program last quarter as expected, raising $4.1 million of gross proceeds at an average price of $10.11 per share. We expect the ATM program to continue to be used as one of the multiple options at our disposal to raise capital to fund our development activity.

接著談資產負債表。第三季我們持續採取行動以提升彈性並強化資產負債表。如預期，我們上季持續使用 ATM 計畫，以每股平均 10.11 美元募集 410 萬美元的總募集款。我們預期 ATM 計畫將持續作為我們可用的多種籌資選項之一，用以募集資金以支應開發活動。

As you can see from our outstanding debt summary on page 11 of our supplemental at quarter-end we had total outstanding debt of $420 million including $106 million outstanding under the $150 million revolving credit facility. Our debt initiatives continue to be in line with our corporate goals.

如你們在補充資料第 11 頁的期末未償債務摘要所見，截至季末我們未償債務總額為 4.20 億美元，其中包含在 1.50 億美元循環信用額度下已動用的 1.06 億美元。我們的債務相關措施持續與公司目標一致。

As of September 30 our fixed-rate debt including swap locks was 52% of our total debt and including interest-bearing caps 77% of our debt was fixed or hedged. After quarter-end we purchased a $75 million LIBOR interest rate cap at 1.25%. Including this new cap 95% of our debt was fixed or hedged. We believe that using interest rate caps limits our exposure to rising rates while giving us flexibility at a reasonable cost.

截至 9 月 30 日，我們的固定利率債務（含 swap locks）占總債務 52%；若包含計息上限（interest-bearing caps），則 77% 的債務為固定或已避險。季末後，我們以 1.25% 買入一筆 7,500 萬美元的 LIBOR 利率上限。納入此新上限後，我們 95% 的債務為固定或已避險。我們認為使用利率上限可在合理成本下限制利率上升風險，同時保有彈性。

As Lou discussed earlier on the call, the Point Street Apartments is not consolidated and therefore does not stress our balance sheet during construction lease-up. A project of this size and duration requires debt and equity for over two years with no return on that capital. With this project we have paid a return on our equity and earned a construction fee and during the development have an option to purchase a controlling interest in that property upon completion. Our investment is in the form of a $23 million mezzanine loan which bears interest at 8%.

如 Lou 先前在電話會議中提到，Point Street Apartments 未併入合併報表，因此在施工與招租期間不會對我們的資產負債表造成壓力。如此規模與工期的專案，需要在超過兩年的期間投入債務與股權資金，且該資本在此期間沒有回報。就此專案而言，我們已就股權取得回報並賺取施工費，且在開發期間擁有於完工時選擇購買該物業控股權的選擇權。我們的投資形式為 2,300 萬美元的夾層貸款（mezzanine loan），利率為 8%。

As with any development project, it will take time for the project to ramp up. And we're not expecting much of an impact from this during the fourth quarter.

如同任何開發專案，該專案需要時間逐步爬坡。我們預期第四季不會因此產生太大影響。

From a timing standpoint we do not expect the $23 million loan to be fully funded until sometime in the first quarter of 2016. The construction contract will be approximately $57 million with a fee of 3%.

就時程而言，我們預期 2,300 萬美元貸款要到 2016 年第一季某個時間點才會全數撥付。施工合約金額約為 5,700 萬美元，費用率為 3%。

The other new development project that Lou discussed is Brooks Crossing. We expect to fund this project with a credit facility due to its modest size.

Lou 另外提到的新開發專案是 Brooks Crossing。由於其規模不大，我們預期以信用額度為該專案提供資金。

I want to spend a couple of minutes reiterating the details of the Columbus Village acquisition. This acquisition was funded by the assumption of $8.8 million of debt and the issuance of 1.275 million operating partnership units. 1 million of these units do not earn or accrue dividends until July 2017 and 275,000 units will not be issued until January 2017 and do not earn or accrue dividends until January, 2018.

我想花幾分鐘重申 Columbus Village 收購案的細節。本次收購係透過承接 880 萬美元債務，以及發行 127.5 萬個營運合夥單位（OP units）來完成。其中 100 萬個單位在 2017 年 7 月之前不會支付或累計股利，另有 27.5 萬個單位將於 2017 年 1 月才會發行，且在 2018 年 1 月之前不會支付或累計股利。

The interim dividend that would have been paid at the current dividend rate equates to $1.8 million. We view this as a reduction in purchase price of the center. It can also be viewed as a higher valuation of the OP units.

若按目前股利率計算，原本應支付的過渡期股利相當於 180 萬美元。我們將其視為該購物中心購買價格的減項；也可視為 OP 單位估值較高。

The 24- to 30-month period from closing that dividends will not be paid also coincides with the potential NOI growth at the center. Even though dividends are not being paid on these units the total 1.275 million units are included in our diluted share count for FFO per share calculations.

自交割日起 24 至 30 個月不支付股利的期間，也與該中心潛在 NOI 成長的時間點相吻合。即使這些單位不支付股利，全部 127.5 萬個單位仍會納入我們用於每股 FFO 計算的稀釋後股數。

We closed on the Providence Plaza acquisition on September 1 for $26.2 million, representing a going-in cap rate of 7.25%. This was acquired by using $14 million in 1031 proceeds from the Whetstone sale and the remainder was funded through the credit facility. This property is unencumbered and will be added to the borrowing base of the credit facility along with two other properties to increase the capacity by $25 million. These changes to the borrowing base are expected to close during the fourth quarter.

我們於 9 月 1 日以 2,620 萬美元完成 Providence Plaza 的收購，對應的初始資本化率（going-in cap rate）為 7.25%。本案使用 Whetstone 出售所得中的 1,400 萬美元 1031 款項，其餘則透過信用額度融資。該物業無抵押，並將與另外兩項物業一併納入信用額度的借款基礎（borrowing base），以將額度容量提高 2,500 萬美元。預期借款基礎的這些調整將於第四季完成交割。

On the asset sales front we closed on the sale of the Oceaneering building last week. The building sold for $30 million which represents a 6.6% cap rate. This is our fourth disposition in the past 12 months of an asset in a cap range of between 5.75% and 6.6%.

在資產出售方面，我們於上週完成 Oceaneering 大樓的出售。該大樓售價為 3,000 萬美元，對應資本化率為 6.6%。這是我們過去 12 個月內第四筆處分，資本化率區間介於 5.75% 至 6.6%。

This sale is another example of the value and cap rates of our properties. The 20% profit on the sale is similar to the profit from the Whetstone sale is another example of the equity delivered from our development process. We intend to use the proceeds from the sale in a 1031 exchange.

這筆出售再次展現我們物業的價值與資本化率水準。本次出售的 20% 利潤與 Whetstone 出售的利潤相近，也再次證明我們開發流程所帶來的股東權益增值。我們擬將出售所得用於 1031 交換。

Now let me walk you through our full-year 2015 guidance. This morning we raised 2015 full-year normalized FFO guidance now $0.91 to $0.93 per share from our previous guidance of $0.88 to $0.91 per share. We are increasing guidance due to the performance of third-party construction business and multi-family leasing.

接下來我帶各位看我們 2015 全年指引。今天早上我們上調 2015 全年標準化 FFO 指引，從先前每股 0.88 至 0.91 美元，上調至每股 0.91 至 0.93 美元。我們上調指引主要因第三方營建業務與多戶住宅招租表現。

Our 2015 estimates are predicated on the following assumptions: GAAP NOI in the $53.7 million to $53.9 million range, third-party construction Company gross profit in the $5.8 million to $6.1 million range, general and administrative expenses in the $8.3 million to $8.5 million range, interest expense in the $13.3 million to $13.5 million range, and 41.1 million weighted average shares and OP units outstanding which includes the units associated with the acquisition of Columbus Village. This guidance excludes the impact from future acquisitions, asset sales with the exception of Oceaneering or other capital markets activity with the exception of continuing the ATM program.

我們的 2015 年預估係基於以下假設：GAAP NOI 介於 5,370 萬至 5,390 萬美元；第三方營建公司毛利介於 580 萬至 610 萬美元；一般及行政費用介於 830 萬至 850 萬美元；利息費用介於 1,330 萬至 1,350 萬美元；加權平均流通股數與 OP 單位為 4,110 萬，包含與 Columbus Village 收購相關的單位。本指引不包含未來收購、資產出售（Oceaneering 除外）或其他資本市場活動（持續進行 ATM 計畫除外）的影響。

Before we turn to Q&A I would like to make a comment about 2016. As Lou discussed we signed an agreement to sell the Richmond Tower subject to the usual due diligence and closing requirements. Due to this uncertainty, the size of the sale and that we are still formulating our plan on how to best reinvest the proceeds it's too early to give any insight into 2016. We will give an update once we close on the transaction and have finalized our reinvestment plan.

在進入問答之前，我想對 2016 年做一點說明。如 Lou 所述，我們已簽署出售 Richmond Tower 的協議，但仍須符合一般的盡職調查與交割條件。由於存在不確定性、出售規模較大，且我們仍在擬定如何最佳再投資出售所得的計畫，因此現在要對 2016 年提供任何觀點仍為時過早。我們將在交易完成並定案再投資計畫後提供更新。

I'll now turn the call back to look.

我現在把電話會議交回給 Lou。

Thank you, Mike. And thank you for your time this morning and your interest in Armada Hoffler. Operator, we would 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) Rob Stevenson, Janney Montgomery Scott.

（接線員指示）Rob Stevenson，Janney Montgomery Scott。

Good morning, guys. Can you talk a little bit about the Richmond office market and where other sort other competing assets have traded recently?

各位早安。你們能否談談里奇蒙（Richmond）辦公市場的情況，以及近期其他競爭性資產大致以什麼價格／條件成交？

And then also with respect to that market you exit that on the office side with the sale of Richmond Tower. Is this a market that you'd want to be back in longer term or should we read into it that Richmond is part of this transaction that Richmond office is not in the long-term cards for the Company?

另外，就該市場而言，你們透過出售 Richmond Tower 退出辦公資產。這是否是你們長期仍想回到的市場？還是我們應解讀為：在公司長期規劃中，里奇蒙的辦公市場並不在版圖之內？

Thanks, Rob. I think it's the latter. We're obviously very happy with the assets.

謝謝，Rob。我認為是後者。我們顯然對這些資產非常滿意。

It served us well. It's a marquee asset in that city. There is a competing product going up across the street from the project that's going to be similar in size and scope as ours.

它一直為我們帶來很好的效益。它是該城市的旗艦資產。該專案街對面正在興建一個競爭產品，其規模與範疇將與我們的相近。

That will represent the only two new office towers in the Richmond market. Actually when we build ours we were the first one in over 20 years to go into the downtown market.

那將是里士滿市場僅有的兩棟新辦公大樓。其實當我們興建我們的那棟時，我們是 20 多年來第一個進入市中心市場的。

So we're looking at it as more and more of an outlier with not a lot of upward pressure. And as I said earlier in reviewing it we as a rule over our 30-some-years history don't like to hold single tenant assets which this predominantly is for the long haul. And so that's what was behind the decision to divest.

因此我們把它視為越來越像是個例外值，向上壓力不大。而且如我先前在檢視時所說，依我們 30 多年的歷史經驗，一般而言我們不喜歡長期持有單一承租戶資產，而這項資產主要就是如此。因此這就是做出出售決定的原因。

Now we'll see, that's not a hard contract at this point but hopefully it will go along to closing. But I don't see us in the downtown market in any meaningful way in the future.

接下來我們再看看，目前這還不是一份硬性合約，但希望能一路推進到交割。不過我不認為未來我們會以任何有意義的方式參與市中心市場。

Okay. And best guess at this point is that like a second-quarter if everything goes well sale?

好的。那目前最好的推測是，如果一切順利，會在第二季出售嗎？

No, it will be before the end of the year.

不，會在年底之前。

Okay. Then and I don't know whether I missed it or whatever but did you, have you guys decided on a plan yet for Columbus Village?

好的。那另外我不確定我是否漏聽了，但你們對 Columbus Village 的計畫已經決定了嗎？

We're evaluating several right now. As you know we're in partnership with the city and both of us are interested in expanding Town Center.

我們目前正在評估幾個方案。如你所知，我們與市政府是合作夥伴，雙方都希望擴大 Town Center。

We're not certain just how vertical it's going to go or whether we'll re-tenant it and expand it horizontally. So we're going to bide our time there and let a few more cards be played.

我們還不確定會往多高的垂直方向發展，或是重新招商並在水平方向擴建。所以我們會先觀望一下，讓更多情勢發展後再做決定。

Okay. And what are the leases sort of run on that, what's the earliest you could do anything on that site?

了解。那那邊的租約大概是怎麼跑的？最早你們什麼時候可以在那塊地上做任何動作？

We just extended the Barnes & Noble lease for a period of two years. And so that's about when although we have the ability to relocate them as a part of the expansion. So I could see, I don't see much happening in 2016 but possibly towards the end having a plan finalized.

我們剛把 Barnes & Noble 的租約延長了兩年。所以大概會在那個時間點左右，雖然作為擴建的一部分我們也有能力把他們遷移。因此我可以想像，2016 年不會有太多進展，但可能在年底前把計畫定案。

Okay. Thanks, guys.

好的。謝謝各位。

Dave Rodgers, Robert W. Baird.

Dave Rodgers，Robert W. Baird。

Mike, Lou, good morning. A couple of maybe yielded numbers question just to start off.

Mike、Lou，早安。我先問幾個可能是關於收益率數字的問題。

On the Richmond Tower is that I think a 7.5% cap rate. I'm assuming based on the length of the lease there that that's a GAAP number. Can you tell me if it is GAAP or cash and what they cash number would be on that?

關於 Richmond Tower，我想是 7.5% 的資本化率（cap rate）。我假設基於那邊租約的年限，這應該是 GAAP 數字。你能告訴我這是 GAAP 還是現金口徑？如果是現金口徑，那現金數字會是多少？

Sure, Dave, good morning, this is Eric Smith. That is based on a pro forma cash number.

當然可以，Dave，早安，我是 Eric Smith。那是以備考（pro forma）的現金口徑數字為基礎。

So that's the cash. What would the GAAP be on that?

所以那是現金口徑。那 GAAP 口徑會是多少？

It's between the 7.5 and 8 cap rate range on a GAAP basis, Dave.

Dave，以 GAAP 口徑來看，大約落在 7.5 到 8 的資本化率區間。

Okay, that's helpful. Thank you.

好的，這很有幫助。謝謝。

The investment in Baltimore I think you went through a good amount of detail in terms of the mezzanine loan and financing. I did not hear if you quoted a yield of what you expect your stabilized investment to be. If you bought the majority share in the asset at this point you have a view on what that would be?

關於在巴爾的摩的投資，我想你已經就夾層貸款與融資講了不少細節。我沒有聽到你提到你們預期穩定後投資的收益率是多少。如果你們此時買下該資產的大多數持分，你們對那會是多少有看法嗎？

Sure, Dave, as we represented this is going to hit our traditional spread. We'd probably shoot for a 125 to 200 basis point spread. Obviously if you move down the cap rate curve that gets a little narrower but we're looking at 100 basis points plus.

當然，Dave，如我們所說，這會達到我們傳統的利差目標。我們大概會以 125 到 200 個基點的利差為目標。當然，如果你沿著資本化率曲線往下走，利差會變得比較窄，但我們看的是至少 100 個基點以上。

I'm being conservative with that statement. A nearby apartment property just sold for what would end up being a 4.5 cap. We're not using that as a comp but I can tell you this is a better product than that.

我這樣說是保守的。附近一個公寓物業剛以最終約 4.5 的 cap 成交。我們不把它當作可比案例，但我可以告訴你，我們的產品比那個更好。

But I think it's very reasonable that that waterfront real estate where rents are rapidly approaching $4 will trade in the 5.5 cap range. And of course our spread is going to maintain close to 7.

但我認為很合理的是，那些濱水不動產在租金快速逼近每平方英尺 4 美元的情況下，會以約 5.5 的 cap 交易。而當然，我們的利差將維持接近 7。

Okay, perfect. Thanks.

好的，完美。謝謝。

Last one on the numbers, the Liberty and Encore stabilized in the quarter. How did those come in relative to pro forma? And can you give us any types of sense of yield there as well on a stabilized basis now?

最後一個數字問題：Liberty 和 Encore 在本季達到穩定。它們相對於備考（pro forma）表現如何？另外你也能給我們一些穩定後的收益率概念嗎？

Yes, I think well Encore is still stabilizing. It's just hitting 90% or so now. It's a little bit above pro forma, a little bit better them what we thought and we'll see how that goes once it gets all the way home.

是的，我想 Encore 其實仍在穩定化中。現在大概剛到 90% 左右。它略高於備考，表現比我們預期稍好；等它完全到位後我們再看看結果。

On Liberty to be honest with you we're not satisfied with the yields there. It's below pro forma. I mean it's great that it this thing's like 99% occupied, but we're not happy with the expenses the way they are coming in.

至於 Liberty，坦白說我們對那邊的收益率不滿意。它低於備考。我的意思是，這個案子入住率大概 99% 很棒，但我們對費用端的實際表現不滿意。

So we're going to take a hard look at that and see if we can't goose that a bit. But to be honest with you right now we're pleased with the occupancy but not pleased with the yields.

所以我們會仔細檢視，看看能不能把它再推高一些。但老實說，目前我們對入住率滿意，但對收益率不滿意。

Okay, thanks. That's helpful to know.

好的，謝謝。這點很有幫助。

With regard to your comment, I think you said there's more projects in the works maybe similar to the Baltimore project you just talked about today, the Harbor Point project. Would those also be in Baltimore? Are you looking more broadly, should we be thinking maybe down the coast toward Charlotte, Raleigh or were you talking specifically in the Baltimore region?

關於你的評論，我想你說還有更多類似你今天談到的巴爾的摩 Harbor Point 專案那樣的案子正在進行中。那些也會在巴爾的摩嗎？還是你們看得更廣，像是沿海往夏洛特、羅利方向？或你是特別指巴爾的摩地區？

Both, Dave. The Baltimore Metropolitan area is a focus for us. We'll look at other opportunities there and as you know we're looking at opportunities throughout the Carolinas.

兩者都有，Dave。巴爾的摩都會區是我們的重點。我們會在那裡尋找其他機會；而且如你所知，我們也在卡羅來納州各地尋找機會。

So we're excited about that program. Having a well-heeled 30-some-year-old construction Company gives us the ability to control costs through a different mechanism that isn't available to others and makes us very comfortable in making these kinds of investments. As we said it keeps it off of our balance sheet, keeps fees and income coming and maintains our spread. So I think as I alluded to as you can imagine there's a lot of developers out there that need strong partners, so we're vetting a number of opportunities at this point.

所以我們對這個計畫很興奮。擁有一家資本雄厚、成立 30 多年的營造公司，讓我們能透過不同於他人的機制來控制成本，並使我們在進行這類投資時非常安心。如我們所說，這能讓它不進入我們的資產負債表、持續帶來費用與收入，並維持我們的利差。所以正如我暗示的，你可以想像外面有很多開發商需要強而有力的合作夥伴，因此我們目前正在審核多個機會。

Last one for me, sorry, is Mike with the sale of the Richmond office tower slated to come in by year-end, what would you look at your total availability or total capacity kind of going into next year as?

我最後一個問題，抱歉：Mike，隨著里士滿辦公大樓預計在年底前完成出售，展望明年你們的總可用額度或總資金承載能力大概會是怎樣？

Good morning, Dave. Capacity wise we look good. I think as we mentioned on the call we're going to increase the capacity under our credit facility by $25 million.

早安，Dave。就承載能力而言，我們看起來不錯。我想我們在電話會議中提到，我們會把循環信貸額度提高 2,500 萬美元。

The way we're doing Harbor Point it's not going to stress the balance sheet. And actually we're going to create EBITDA through the mezz interest as well as the construction fees, so that one's taken care of from that standpoint.

我們進行 Harbor Point 的方式不會讓資產負債表承受壓力。事實上，我們也會透過夾層利息以及施工費用創造 EBITDA，所以從那個角度來看，這個案子已經處理好了。

So from that standpoint balance sheet all looks good. We're going to end up with a lot of cash between the sale of Oceaneering and the sale of (inaudible) and now we're in a great position of looking at how we want to reinvest that money.

因此從這個角度看，資產負債表一切良好。隨著 Oceaneering 的出售以及（聽不清）資產的出售，再加上現在這筆，我們最終會有大量現金，並且處於很好的位置來思考要如何再投資這些資金。

Okay great. Thanks, guys.

好的，很好。謝謝各位。

We have reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

我們的問答環節到此結束。接下來我想把時間交還給管理層，請他們做進一步或結語說明。

Thank you for your time this morning. And thanks for your interest in our Company. And we look forward to updating you again soon.

感謝各位今天早上的時間，也謝謝各位對本公司的關注。我們期待不久後再次向各位更新。

Thank you. That does conclude today's teleconference.

謝謝。今天的電話會議到此結束。

You may disconnect your lines at this time and have wonderful day. We thank you for your participation today.

您現在可以掛線，祝您有美好的一天。感謝您今天的參與。