AH Realty Trust, Inc (AHRT) 2015 Q4 法說會逐字稿

Welcome to Armada Hoffler's Fourth Quarter 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, you will be invited to participate in a question-and-answer session.

歡迎參加 Armada Hoffler 2015 年第四季財報電話會議。目前所有與會者將以僅收聽模式參與。在管理層預先準備的發言結束後，將邀請各位參與問答環節。

(Operator Instructions) As a reminder, this conference call is being recorded today, Thursday, February 11, 2016.

（接線員指示）提醒各位，本次電話會議將於今日（2016 年 2 月 11 日，星期四）錄音。

I will now turn the conference call over to Michael O'Hara, Chief Financial Officer at Armada Hoffler. Please go ahead.

現在我將把電話會議交給 Armada Hoffler 財務長 Michael O'Hara。請開始。

Good morning, and thank you for joining Armada Hoffler's fourth 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. The press release announcing our fourth quarter earnings along with our quarterly supplemental was distributed this morning. A replay of this call will be available shortly after the conclusion of the call through March 11, 2016. The numbers to access the replay are provided in the earnings press release. For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, February 11, 2016 and will not be updated subsequent to this initial earnings call.

各位早安，感謝您參加 Armada Hoffler 2015 年第四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，以及將可於問答環節回答問題的投資長 Eric Smith。今早我們已發布宣布第四季獲利的新聞稿以及季度補充資料。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 2016 年 3 月 11 日。重播的撥入號碼已載於獲利新聞稿。對於收聽本次簡報重播的聽眾，我們提醒您：本次發言係截至今日（2016 年 2 月 11 日），且在本次初次財報電話會議後不會再更新。

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 the 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 as we advise listeners to review the risk factors discussed in our press release this morning and in documents that we have filed with or furnished to the SEC.

在本次電話會議中，我們將發表前瞻性陳述，包括與我們投資組合未來表現、開發管線、收購與處分之影響、營造業務、投資組合表現與融資活動相關之陳述，以及對前景的評論。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出現重大差異；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 also will 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？

Good morning, and thank you for joining us today. This morning, we posted our full year 2015 results with normalized FFO per share of $0.93. We achieved the high end of our increased guidance range. From our core portfolio to the execution of the projects in our development pipeline to our third-party construction business, we realized tremendous growth across all areas of our Company during this past year. Most importantly, we took proactive steps and made what we believe to be the right real estate decisions to position our Company for sustained future performance and long-term value creation.

各位早安，感謝今天加入我們。今天早上，我們公布了 2015 全年業績，標準化每股 FFO 為 0.93 美元。我們達成了上調後指引區間的高端。從核心投資組合、開發管線專案的執行，到第三方營造業務，在過去一年中，我們公司各領域皆實現了顯著成長。最重要的是，我們採取了積極主動的步驟，並做出我們認為正確的不動產決策，以使公司得以維持未來的持續表現並創造長期價值。

I'll begin with highlights from this past quarter and year and close with comments on 2016. Mike will then provide details on the quarter, as well as our 2016 guidance, which we introduced this morning. At the beginning of the year, I reiterated our long-term growth strategy. We create value through new real estate development, organic growth in our core portfolio, our third-party construction business, strategic acquisitions and efficient capital recycling. This morning, I'm proud to report that we delivered on each of these fronts during 2015, resulting in significant year-over-year growth in NOI, same-store NOI, construction gross profits, FFO and normalized FFO. Mike will walk through each of these metrics in detail shortly.

我將先從本季與本年度的重點開始，並以對 2016 年的評論作結。接著 Mike 將提供本季細節，以及我們今早首次提出的 2016 年指引。年初時，我重申了我們的長期成長策略：我們透過新不動產開發、核心投資組合的有機成長、第三方營造業務、策略性收購，以及有效的資本循環再投資來創造價值。今天早上，我很自豪地報告，我們在 2015 年於上述各方面均有交付成果，帶動 NOI、同店 NOI、營造毛利、FFO 與標準化 FFO 的顯著年增成長。Mike 稍後將逐一詳細說明這些指標。

While I'm pleased to report such great results, I'm more focused on the long-term value that our management team continues to create as a real estate producer and investor, not just as an investment vehicle. The fundamental and guiding principle of our real estate company for the past 37 years remains unchanged, to invest in and develop the highest quality real estate in our target markets. If there is one thing that our management team has learned over the 30-plus years we've been together, it's that high-quality real estate stands the test of time, appreciates over the long term and it's very difficult to duplicate. Our quarterly FFO growth is well received. Long-term asset value or NAV growth is our prime focus.

雖然我很高興能報告如此優異的成果，但我更關注的是我們管理團隊作為不動產的生產者與投資者（而不僅僅是投資工具）所持續創造的長期價值。過去 37 年來，我們不動產公司的根本與指導原則始終不變：在目標市場投資並開發最高品質的不動產。如果說我們管理團隊在共同合作的 30 多年中學到一件事，那就是高品質不動產能經得起時間考驗、長期增值，而且非常難以複製。我們的季度 FFO 成長獲得市場肯定；而長期資產價值或 NAV 成長才是我們的首要重點。

I'll start with the primary growth engine of our Company, our development pipeline. During 2015, we placed into service four new assets, two office buildings for the Commonwealth of Virginia, Sandbridge Commons Shopping Center and the Oceaneering International building, each on schedule and on budget. The Commonwealth buildings and Sandbridge Commons remain in our core portfolio. As we discussed on our last call, we sold the Oceaneering building at handsome 20% profit and reinvested the net proceeds into a portfolio of high quality retail assets that I'll discuss in a few moments.

我先從公司主要成長引擎——開發管線——談起。2015 年，我們有四項新資產投入營運：為維吉尼亞州政府興建的兩棟辦公大樓、Sandbridge Commons 購物中心，以及 Oceaneering International 大樓；各項皆按期且在預算內完成。維州政府大樓與 Sandbridge Commons 仍保留在我們的核心投資組合中。如同我們在上次電話會議所提到的，我們以可觀的 20% 利潤出售了 Oceaneering 大樓，並將淨收益再投資於一組高品質零售資產投資組合，我將在稍後說明。

We continue to make progress on the projects in our active development pipeline, both Johns Hopkins Village and Lightfoot Marketplace are on track for mid-2016 deliveries. Pre-leasing activity at both properties has been strong. As of today, 56% of the apartments at Johns Hopkins Village are pre-leased and over half the retail space is under negotiation. Lightfoot Marketplace currently stands at 71% pre-leased, including the addition of 22,000 square foot build-to-suit building for children's hospital.

我們持續推進目前開發管線中的專案；Johns Hopkins Village 與 Lightfoot Marketplace 皆按計畫於 2016 年年中交付。兩處物業的預租活動表現強勁。截至今日，Johns Hopkins Village 的公寓已有 56% 完成預租，且超過一半的零售空間正在洽談中。Lightfoot Marketplace 目前預租率為 71%，其中包括新增一棟 22,000 平方英尺、為兒童醫院量身打造（build-to-suit）的建築。

Brooks Crossing, our joint venture with the City of Newport News, continues to evolve and grow. Just last month, we completed and sold to the City a new $7 million police precinct. For the next phase of the project, we're currently projecting 50,000 square feet of mixed-use space and are in negotiations with a Fortune 500 office tenant to anchor the project. Brooks Crossing represents yet another public-private partnership on the heels of a two dozen other such transactions that have been our hallmark over the past four decades.

Brooks Crossing——我們與 Newport News 市政府的合資案——持續演進並成長。就在上個月，我們完成並出售給市政府一座新的 700 萬美元警察分局。就專案下一階段而言，我們目前預估將開發 50,000 平方英尺的複合式用途空間，並正與一家《財富》500 大企業的辦公租戶洽談，擬作為該專案的主力租戶。Brooks Crossing 代表我們在過去四十年中以公私協力為特色、繼二十多起同類交易之後的又一項公私合作夥伴關係。

We ended 2015 with the announcement of our investment in the new $93 million Point Street Apartments project. As I discussed on our last call, Point Street is located on the waterfront in the highly desirable Inner Harbor East of Baltimore and is expected to feature 289 luxury apartment units and 18,000 square feet of retail. The opportunity to invest in the project arose from our long association with Beatty Development Group, a relationship grounded in the $1 billion plus of projects that we've completed in the Inner Harbor over the past two decades. As both the mezzanine lender and the project's general contractor, we realized market rate interest income and fees during the lengthy development and construction process while at the same time, avoiding the stress on our balance sheet during development and initial lease up. With our option to purchase 88% interest in the project at cost upon completion, we preserve a healthy wholesale to retail spread. Most importantly, Point Street Apartments represents our next step in building a portfolio of the highest quality real estate.

我們在 2015 年底宣布投資新的 9,300 萬美元 Point Street Apartments 專案。如同我在上次電話會議所提到的，Point Street 位於巴爾的摩極具吸引力的 Inner Harbor East 濱水地段，預計包含 289 戶豪華公寓單位與 18,000 平方英尺的零售空間。投資機會源自我們與 Beatty Development Group 的長期合作關係；該關係奠基於過去二十年我們在 Inner Harbor 完成的逾 10 億美元專案。作為夾層貸款人（mezzanine lender）以及該專案的總承包商，我們在漫長的開發與施工過程中取得市場利率的利息收入與費用，同時避免在開發與初期出租期間對資產負債表造成壓力。透過我們在完工時以成本價購買該專案 88% 權益的選擇權，我們得以保留健康的批發到零售價差。最重要的是，Point Street Apartments 代表我們在打造最高品質不動產投資組合上的下一步。

Our broad-based capabilities and track record allow us to selectively invest in some of the best projects in our target markets. We are confident that, over time the quality of our assets and the lower cap rates they command will translate into higher NAV.

我們廣泛的能力與過往實績，使我們能在目標市場中有選擇地投資於一些最優質的專案。我們相信，隨著時間推移，我們資產的品質以及其所對應的較低資本化率（cap rates），將轉化為更高的 NAV。

We continue to explore a number of similarly structured opportunities with other experienced developers who are seeking a strong development, construction and financial partner with all the capabilities that we bring to the table. While it would be premature to discuss specifics at this time, I can reiterate the attributes that we are targeting in new product for our pipeline; Class A assets with high barrier to entry locations, diversification, primarily targeting the Raleigh-Durham, Charlotte and Baltimore markets, strategic expansion at Town Center, a healthy development spread of approximately 20% created through premier site selection, cost and timing controls at our operating companies, and leveraging public-private partnerships when appropriate, joint venture opportunities, utilizing our unique ability to co-develop and construct. We have enough confidence in a number of these potential projects to include their impact on our 2016 guidance range and look forward to executing agreements to making official announcements in the coming weeks.

我們持續與其他具經驗的開發商探索多項結構相近的機會；這些開發商正在尋找具備我們所能提供之全方位能力的強大開發、營造與財務合作夥伴。雖然目前討論具體細節仍言之過早，但我可以重申我們在管線新產品上鎖定的特性：位於高進入門檻地段的 A 級資產、分散化，主要聚焦於 Raleigh-Durham、Charlotte 與 Baltimore 市場、在 Town Center 的策略性擴張、透過優質基地選址以及我們營運公司在成本與時程控管所創造約 20% 的健康開發價差，並在適當時運用公私協力、合資機會，發揮我們獨特的共同開發與施工能力。我們對其中若干潛在專案具備足夠信心，已將其影響納入我們 2016 年指引區間，並期待在未來幾週內完成協議並正式對外公告。

Shifting to the foundation of our Company, our core portfolio, our stabilized assets continue to outperform. During 2015, we grew cash same-store NOI by 5.5%. The fourth quarter of 2015 marked our sixth consecutive quarter of significant same-store NOI growth. The organic growth in our portfolio was driven largely by strong retail and multifamily leasing at the Town Center of Virginia Beach, providing further proof of the quality and growth potential of our flagship assets.

轉向我們公司的基礎——核心投資組合，我們的穩定型資產持續表現優於預期。2015 年，我們的同店現金 NOI 成長 5.5%。2015 年第四季是我們連續第六個季度實現顯著的同店 NOI 成長。我們投資組合的內生成長主要由維吉尼亞海灘市鎮中心（Town Center of Virginia Beach）強勁的零售與多戶住宅租賃所帶動，進一步證明我們旗艦資產的品質與成長潛力。

At the end of the year, our core portfolio occupancy stood at a solid 95%. Occupancy across all product sites at the end of the year stood in the mid-90s and during the third quarter, we successfully managed both Encore and Liberty Apartments to stabilization.

年末，我們核心投資組合的出租率穩健達到 95%。年末所有產品類型據點的出租率均維持在 90% 中段水準，且在第三季，我們成功將 Encore 與 Liberty Apartments 兩項資產管理至穩定狀態。

Turning to our third-party construction business, our general contracting segment finished the year in line with increased expectations reporting $5.9 million of gross profit, an increase of almost 30% over 2014 and well above our historical run rate. Our progress on $170 million Exelon Tower in Baltimore's Harbor Point continues on schedule towards completion this spring. Just next door to the Exelon site, our team has already begun construction on Point Street Apartments. Here in Virginia Beach, our work on a new Oceanfront hotel is underway as well. With over $83 million in backlog and several promising opportunities in the pipeline, we expect this segment of our business to continue to generate profits above our historical average.

再談我們的第三方營建業務，我們的一般承包部門在年末的表現符合上修後的預期，毛利達 590 萬美元，較 2014 年增加近 30%，亦明顯高於我們的歷史常態水準。我們在巴爾的摩 Harbor Point、總額 1.70 億美元的 Exelon Tower 專案進度持續如期，預計於今年春季完工。就在 Exelon 工地隔壁，我們團隊已開始興建 Point Street Apartments。在維吉尼亞海灘，我們也正著手進行一間新的海濱飯店工程。憑藉超過 8,300 萬美元的在手訂單（backlog）以及管線中數個具前景的機會，我們預期此業務部門將持續創造高於歷史平均的獲利。

On the acquisitions and dispositions front, 2015 and the initial weeks of 2016 were busy. During the year, we sold the Sentara Williamsburg Medical Office building and the newly delivered Whetstone Apartments and utilized the net proceeds to acquire Stone House Square, Socastee Commons and Providence Plaza. As a result, we successfully monetized the wholesale to retail spread created by our development process and expanded our geographic reach into Maryland as well as North and South Carolina. Furthermore, our development and construction expertise lends itself to potential development opportunities at both at Providence Plaza and Socastee Commons.

在收購與處分方面，2015 年以及 2016 年初的幾週都相當忙碌。年內，我們出售 Sentara Williamsburg Medical Office 大樓以及新近交付的 Whetstone Apartments，並將淨收益用於收購 Stone House Square、Socastee Commons 與 Providence Plaza。因此，我們成功將開發流程所創造的批發到零售價差變現，並將地理版圖擴展至馬里蘭州以及北、南卡羅來納州。此外，我們的開發與營建專長也使 Providence Plaza 與 Socastee Commons 兩處具備潛在的開發機會。

In April, we acquired Perry Hall Marketplace in a common stock transaction, further solidifying our Maryland portfolio. In July, we completed the acquisition of Columbus Village, a transaction in which the seller took back over [$14 million] of value in OP units. This five acre parcel adjacent Town Center, Virginia Beach is a prime target for redevelopment and fits squarely within our investment philosophy and long-term strategy. In October, we completed the sale of the Oceaneering International Building for $30 million and just after the turn of the year, we completed the sale of the Richmond Tower office building for $78 million. We used the proceeds from these sales to partially fund the acquisition of $170.5 million retail portfolio totaling 1.1 million square feet across 11 assets. The core of the acquired portfolio consists of six retail centers, well positioned along the I-85 corridor between Raleigh-Durham and Greenville.

4 月，我們以普通股交易收購 Perry Hall Marketplace，進一步鞏固我們在馬里蘭州的投資組合。7 月，我們完成 Columbus Village 的收購；該交易中，賣方以 OP 單位回收了超過 [1,400 萬美元] 的價值。這塊位於維吉尼亞海灘市鎮中心（Town Center）旁、面積五英畝的地塊，是再開發的優質標的，完全符合我們的投資理念與長期策略。10 月，我們以 3,000 萬美元完成出售 Oceaneering International 大樓；而在跨年後不久，我們以 7,800 萬美元完成出售 Richmond Tower 辦公大樓。我們將上述出售所得部分用於資助收購一個總價 1.705 億美元的零售投資組合，合計 11 項資產、總面積 110 萬平方英尺。該收購投資組合的核心由六座零售中心構成，位置優越，坐落於 I-85 走廊上，介於羅利—德罕（Raleigh-Durham）與格林維爾（Greenville）之間。

These core assets feature major anchor tenants including Harris Teeter, PetSmart, T.J. Maxx, Bed, Bath & Beyond, Ross Dress for Less, Hobby Lobby and Petco. The remaining five assets are disposition candidates. We recognize that the weighted average exit cap rate for Richmond Tower and Oceaneering exceeds the going in cap rate for the portfolio acquisition, resulting in a sacrifice of some short-term FFO. With our current cost of capital, we would typically refrain from purchasing 6.5 cap assets. However, the opportunity to redeploy our equity from predominantly single-tenant office assets in the Richmond and Hampton Roads markets into a portfolio of high quality retail assets in the Carolinas each anchored by solid credit brand name tenants was the right real estate decision. In our evaluation, increasing our presence in the major Carolina markets and diversifying our overall risk profile were well worth the cap rate trade off. Furthermore, this transaction allowed us to defer taxes on the significant gains realized on the sales of both Richmond Tower and Oceaneering.

這些核心資產擁有多家主要主力店（anchor）租戶，包括 Harris Teeter、PetSmart、T.J. Maxx、Bed, Bath & Beyond、Ross Dress for Less、Hobby Lobby 與 Petco。其餘五項資產為可處分候選標的。我們了解，Richmond Tower 與 Oceaneering 的加權平均退出資本化率（exit cap rate）高於本次投資組合收購的進場資本化率（going-in cap rate），因此將犧牲部分短期 FFO。以我們目前的資本成本而言，我們通常會避免購買 6.5% cap 的資產。然而，將我們的股權資金自以里奇蒙與漢普頓路（Hampton Roads）市場為主的單一租戶辦公資產，重新配置至卡羅來納地區一組高品質零售資產投資組合，且各資產均由信用良好的知名品牌主力店承租，這是一項正確的不動產決策。在我們的評估中，提升我們在卡羅來納主要市場的布局並分散整體風險輪廓，足以抵消資本化率取捨。此外，此交易亦使我們得以遞延對 Richmond Tower 與 Oceaneering 出售所實現重大資本利得的稅負。

Our management team, collectively, the largest owner of the Company, remains committed to making the right real estate decisions in order to create long-term value for all shareholders. We believe that Armada Hoffler is the only RIET that provides investors the opportunity to benefit from three profit centers in real estate; the ownership of income producing properties, which is where most REITs focus, the profitable development of institutional grade properties at wholesale cost for either portfolio placement or for sale to recycle the capital added gain; and in-house construction, which not only generates substantial profits from third party business but also controls costs and schedule in our development projects. 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.

我們的管理團隊合計為公司最大股東，仍致力於做出正確的不動產決策，以為所有股東創造長期價值。我們相信，Armada Hoffler 是唯一能讓投資人受益於不動產三大獲利中心的 RIET；其一為持有可產生收益的物業（多數 REIT 的重點所在），其二為以批發成本開發機構級（institutional grade）物業並獲利，無論是納入投資組合或出售以回收資本並取得增值收益；其三為自有營建能力，不僅可從第三方業務創造可觀利潤，也能在我們的開發專案中控管成本與工期。我們認為，第三項因素在整個 REIT 宇宙中唯有 Armada Hoffler 具備。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。

As we look ahead to 2016, I continue to be optimistic about our Company and the opportunities presenting themselves in our pre-development pipeline and despite the number of asset dispositions that we've executed in the last 15 months, we continue to project growth in the coming year. But once again, I'll emphasize that our focus is not on next quarters or even next year's growth in FFO. Our attention is on growing our portfolio with the highest quality real estate in the best locations in order to maximize value creation and return it to our shareholders.

展望 2016 年，我對公司以及前期開發（pre-development）管線中所呈現的機會仍保持樂觀；儘管過去 15 個月我們已執行多筆資產處分，我們仍預期來年將持續成長。但我再次強調，我們的重點不在下一季、甚至明年的 FFO 成長。我們的關注在於，以最佳地段的最高品質不動產來擴大投資組合，以最大化價值創造並回饋給股東。

Along those lines, I'm excited that the Board of Directors has declared a cash dividend of $0.18 per share for the first quarter or $0.72 on an annualized basis. This represents 5.9% increase over the prior quarter's dividend. We believe this reflects the Board's confidence in our long-term strategy, the successful execution and delivery of the projects in our pre-development and in active development pipeline and the Board's commitment to enhancing value and returning it to our shareholders.

基於上述方向，我很高興董事會已宣告第一季每股 0.18 美元的現金股利，年化為每股 0.72 美元。這較前一季股利增加 5.9%。我們相信，這反映董事會對我們長期策略的信心、對前期開發與在建開發管線中專案成功執行與交付的肯定，以及董事會致力於提升價值並回饋股東的承諾。

It was made possible not only by all the successes that I've outlined from 2015, but the growth we anticipate in 2016. As everyone is seeing, we provided our 2016 guidance this morning of $0.93 to $0.97 of normalized FFO per share. With a development pipeline where delivery of new projects can be somewhat lumpy from year-to-year and the conclusion of a number of recent dispositions, we believe that the anticipated year-over-year growth we expect in 2016 on top of the 13% growth we experienced in 2015, is emblematic of a strong management team focused on quality real estate decisions and a diversified real estate company and business model.

這不僅得益於我所概述的 2015 年各項成果，也得益於我們對 2016 年的成長預期。正如各位所見，我們今早提供 2016 年指引：每股常態化 FFO（normalized FFO）為 0.93 至 0.97 美元。由於開發管線中新專案交付在年度間可能較為不均（lumpy），且近期多筆處分已告一段落，我們認為，2016 年預期的年增成長（在 2015 年已實現 13% 成長的基礎上）正體現一支專注於高品質不動產決策的強大管理團隊，以及一家具多元化的不動產公司與商業模式。

With that, I will turn the call over to Mike who can provide some additional details and figures around our 2015 activity and 2016 guidance. Mike?

接下來，我把電話交給 Mike，由他提供更多關於我們 2015 年活動與 2016 年指引的細節與數據。Mike？

Thanks, Lou and good morning. I want to cover the highlights of the quarter, the full year, thoughts on our balance sheet and additional details on our 2016 guidance. This morning, we reported FFO of $0.22 per share, normalized FFO of $0.24 per share, which was at the high end of our expectations. For the full-year, FFO was $0.87 per share and normalized FFO was $0.93 per share. This compares to FFO of $0.80 and normalized FFO of $0.82 in 2014.

謝謝你，Lou，大家早安。我想說明本季重點、全年表現、對我們資產負債表的看法，以及 2016 年指引的更多細節。今天早上，我們公布每股 FFO 為 0.22 美元、每股常態化 FFO 為 0.24 美元，落在我們預期區間的高端。全年而言，每股 FFO 為 0.87 美元、每股常態化 FFO 為 0.93 美元。相較之下，2014 年每股 FFO 為 0.80 美元、每股常態化 FFO 為 0.82 美元。

As a reminder, FFO excludes gains on real estate, which was $5 million for the quarter and $18 million for the full year. In spite this treatment, as we've discussed in the past, asset sales and capital recycling will continue to be an element of future value creation. On a related note, because we structure these transactions as 1031 tax-free exchange, there are no taxable gains in 2015. Tax efficiency remains one of our corporate goals.

提醒一下，FFO 不包含不動產處分收益；該收益本季為 500 萬美元、全年為 1,800 萬美元。儘管採此處理方式，正如我們過去所討論，資產出售與資本回收再配置仍將是未來價值創造的一環。相關地，由於我們將這些交易結構設計為 1031 免稅交換（tax-free exchange），因此 2015 年並無應稅資本利得。稅務效率仍是我們的公司目標之一。

Please see page 10 of the supplemental for the normalized FFO calculation. Excluded items this quarter consist of debt extinguishment costs, losses, property acquisition costs, development and other pursuit costs, and mark-to-market adjustments for interest rate derivatives. The most notable of these adjustments was [$885,000] in acquisition development and other pursuit costs, which is largely due to the January portfolio acquisition.

請參閱補充資料第 10 頁的標準化 FFO 計算。本季排除項目包括債務清償成本、損失、不動產收購成本、開發及其他追求成本，以及利率衍生性商品的按市價評價調整。其中最顯著的調整為收購、開發及其他追求成本 [$885,000]，主要係因 1 月的投資組合收購所致。

We had another strong quarter of same-store NOI growth. Same-store NOI growth was positive 2% on a GAAP basis, positive 4.5% on a cash basis compared to the fourth quarter of 2014. For the year, same-store NOI growth was positive 3.2% on a GAAP basis and positive 5.5% on a cash basis compared to 2014. At the end of the quarter, our core operating portfolio occupancy was 95.3%, with office at 95.8%, retail at 95.5% and multi-family at 94.2%.

我們同店 NOI 成長再度繳出強勁的一季。與 2014 年第四季相比，同店 NOI 以 GAAP 基礎計為正成長 2%，以現金基礎計為正成長 4.5%。就全年而言，與 2014 年相比，同店 NOI 以 GAAP 基礎計為正成長 3.2%，以現金基礎計為正成長 5.5%。截至本季末，我們核心營運投資組合的出租率為 95.3%，其中辦公為 95.8%、零售為 95.5%、多戶住宅為 94.2%。

On the construction front, we reported a segment gross profit in the fourth quarter of $1.1 million on revenue of $41 million. For the year, we reported a segment gross profit of $5.9 million on revenue of $171 million. This compares to a segment gross profit of $4.6 million on revenue of $103 million for 2014. At the end of the fourth quarter, the Company had a third-party construction backlog of $83 million.

在營造方面，我們第四季在營收 4,100 萬美元下，認列部門毛利 110 萬美元。全年在營收 1.71 億美元下，認列部門毛利 590 萬美元。相較之下，2014 年在營收 1.03 億美元下，部門毛利為 460 萬美元。截至第四季末，本公司第三方營造在手訂單為 8,300 萬美元。

To summarize our 2015 performance metrics, the Company excelled in all areas. Normalized FFO increased $0.11 per share or 13%. Construction gross profit increased $1.3 million or 28%. AFFO increased $0.19 per share or 31% and same-store cash NOI increased by 5.5%. In addition, we believe this past year's asset recycling improved the quality of our portfolio and underlying cash flow.

總結我們 2015 年的績效指標，本公司在各方面表現出色。標準化 FFO 每股增加 0.11 美元或 13%。營造毛利增加 130 萬美元或 28%。AFFO 每股增加 0.19 美元或 31%，同店現金 NOI 增加 5.5%。此外，我們認為去年進行的資產汰換（asset recycling）提升了投資組合品質與基礎現金流。

Now, turning to the balance sheet. We continue to take actions to enhance flexibility and strengthen our balance sheet, including increasing the capacity of the credit facility, hedging our interest rate exposure and completing a modest equity raise. In December, we issued 3.5 million shares of common stock, which net of issuance cost raised $35.1 million. In addition, we continue to use ATM program last quarter as expected raising $3.7 million on gross proceeds at an average price for $10.21 per share. Proceeds from these transactions were used to repay a portion of the credit facility, which was used to fund our development activities and a portion of the 11 property portfolio acquisition. These equity raises as well as our plan to sell five of the non-core assets from the recent portfolio acquisition are intended to achieve two main objectives; delever the Company to keep our debt metrics and leverage ratios in line with our corporate goals and position the Company to take advantage of new investment opportunities.

接著談資產負債表。我們持續採取行動以提升彈性並強化資產負債表，包括提高信用額度融資的容量、對利率曝險進行避險，以及完成一筆小規模的股權募資。12 月我們發行 350 萬股普通股，扣除發行成本後募得 3,510 萬美元。此外，我們如預期於上季持續使用 ATM 計畫，以每股平均 10.21 美元的價格募集 370 萬美元的總募集款。上述交易所得用於償還部分信用額度融資，而該融資先前用以支應我們的開發活動及 11 項不動產投資組合收購的一部分。這些股權募資，以及我們計畫出售近期投資組合收購中 5 項非核心資產，旨在達成兩項主要目標：降低公司槓桿，使我們的負債指標與槓桿比率符合公司目標，並使公司得以把握新的投資機會。

At the end of the quarter, we had total outstanding debt of $382 million including $74 million outstanding under the $150 million revolving credit facility. In January, we added three properties to the credit facility borrowing base, increased the capacity by $25 million to $225 million. We continue to evaluate our exposure to higher interest rates and look for opportune times to enter hedges. During the quarter, we purchased $75 million LIBOR interest rate cap at 1.25%. With this new cap, as of December 31, all of our debt was fixed or hedged.

截至本季末，我們未償還總負債為 3.82 億美元，其中 1.5 億美元循環信用額度融資項下動用 7,400 萬美元。1 月我們將三項不動產納入信用額度融資的借款基礎，並將額度提高 2,500 萬美元至 2.25 億美元。我們持續評估利率上升的曝險，並尋找適當時點進行避險。本季我們購入名目本金 7,500 萬美元、上限利率 1.25% 的 LIBOR 利率上限（interest rate cap）。在此新上限之下，截至 12 月 31 日，我們所有債務皆為固定利率或已避險。

Now turning to development. As we discussed last quarter, the Points Street Apartments project is not consolidated and therefore does not stress our balance sheet during construction lease-up. Projects of this size and duration require debt and equity for over two years with no return on that capital. With the mezzanine debt structure, we have paid a return on investment, earned a construction fee during development and have an option to purchase a controlling interest in the property upon completion. Our current investment in Point Street is in the form of $23 million mezzanine loan, which bears interest at 8%. As any development project, it takes time for construction ramp up. So from a timing standpoint, we need not expect $23 million loan to be fully funded until late second quarter. The construction contract is expected to be approximately $67 million with a fee of 3%.

接著談開發。如同上季所述，Point Street Apartments 專案未併入合併報表，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。此等規模與期間的專案，通常需要超過兩年的債務與股權資金投入，且在此期間對該資本不會有回報。透過夾層債（mezzanine debt）架構，我們可獲得投資報酬、在開發期間賺取施工費，並在完工後擁有購買該不動產控制性權益的選擇權。我們目前對 Point Street 的投資為 2,300 萬美元的夾層貸款，利率為 8%。如同任何開發案，施工進度提升需要時間；因此就時程而言，我們預期該 2,300 萬美元貸款要到第二季末才會全數撥付。施工合約金額預計約為 6,700 萬美元，費率為 3%。

Earlier, Lou discussed additional pipeline projects that are close to being finalized. Two of these projects have an impact on future earnings. One of these is a multifamily project that is similar in size to the Harbor Point Apartments and is expected to utilize the same mezzanine debt structure. The other is a joint venture of which we are the minority partner. Our construction company will be the general contractor of both these projects, and we're earning third party construction fees. While these two projects are included in our 2016 guidance, the construction contracts are not yet signed and thus not included in our year-end backlog of $83 million.

先前 Lou 提到其他接近定案的管線專案。其中兩個專案將影響未來獲利。其一為一個多戶住宅專案，規模與 Harbor Point Apartments 類似，預期採用相同的夾層債架構。另一個為合資案，我們為少數股權夥伴。我們的營造公司將擔任這兩個專案的總承包商，並賺取第三方施工費。雖然這兩個專案已納入我們 2016 年指引，但施工合約尚未簽署，因此未納入年末 8,300 萬美元的在手訂單。

On the asset recycling front, we closed on the sale of the Oceaneering building in October and the Richmond Tower last month. Combined the sales proceeds were $108 million, which represents 7.6% cash cap rate. These proceeds were reinvested in mid-January to fund a portion of the purchase of the 11 retail properties which at total cost of $170.5 million. Based on our 2016 budgets, which include recent leasing activity, the going in cap rate would be 7% for the entire portfolio. However, for the six core assets that remained after selling the five non-core properties, going in cap rate would be closer to 6.5%. Inclusive of the equity raise in selling the five non-core properties, this transaction will be dilutive by $0.05 per share on a cash basis.

在資產汰換方面，我們於 10 月完成出售 Oceaneering 大樓，並於上月完成出售 Richmond Tower。兩筆出售合計所得為 1.08 億美元，代表 7.6% 的現金資本化率（cash cap rate）。這些資金於 1 月中旬再投資，用以支應收購 11 項零售不動產的一部分，該投資組合總成本為 1.705 億美元。依據我們 2016 年預算（包含近期出租活動），整體投資組合的初始資本化率（going-in cap rate）將為 7%。然而，在出售 5 項非核心不動產後所保留的 6 項核心資產，其初始資本化率將更接近 6.5%。在納入股權募資與出售 5 項非核心不動產的影響後，該交易以現金基礎計將造成每股稀釋 0.05 美元。

As Lou discussed, we feel this was the right decision for the Company as we manage the long-term to make decisions based upon asset quality, tenant risk and cash flow in our quarterly earnings. We also believe this transaction of treating from a predominantly single non-credit office tenant into six retail centers anchored by a solid credit brand name tenant improves the Company's overall cap rate and risk profile. Starting on page 27 of the supplemental are details on this acquisition, including pro forma December 31st data. This pro forma information includes only the six core assets caged along the I-85 corridor in the Carolinas.

如 Lou 所述，我們認為這對公司而言是正確的決策，因為我們以長期管理為導向，在每季盈餘中基於資產品質、承租人風險與現金流做出決策。我們也相信，這筆交易使公司從以單一、非投資級辦公室承租人為主，轉為擁有 6 座由具良好信用品牌承租人作為主力店（anchored）的零售中心，從而改善公司的整體資本化率與風險輪廓。補充資料第 27 頁起提供本次收購的細節，包括 12 月 31 日的備考（pro forma）資料。該備考資訊僅包含位於卡羅萊納州 I-85 走廊沿線的 6 項核心資產。

Now let me walk you through the full year 2016 guidance that we introduced this morning. We expect 2016 normalized FFO in a range of $0.93 to $0.97 per share. Our 2016 estimates are predicated on the following assumptions: GAAP NOI in the $62.3 million to $63.0 million range, third-party construction company gross profit in the $4.7 million to $5.2 million range, general and administrative expenses in the $8.8 million to $9.1 million range, interest income from our mezzanine financing program in the $2.9 million to $3.1 million range, interest expense in the $16.3 million to $16.9 million range, the sale of the five non-core retail properties by June 30 and 47.2 million weighted average shares and OP units outstanding. This guidance does include the impact of the two pending pipeline projects I discussed earlier.

接下來我將帶各位了解我們今天上午發布的 2016 全年指引。我們預期 2016 年標準化 FFO 將落在每股 0.93 至 0.97 美元區間。我們的 2016 年估計係基於以下假設：GAAP NOI 介於 6,230 萬至 6,300 萬美元；第三方營造公司毛利介於 470 萬至 520 萬美元；一般及管理費用介於 880 萬至 910 萬美元；夾層融資計畫的利息收入介於 290 萬至 310 萬美元；利息費用介於 1,630 萬至 1,690 萬美元；於 6 月 30 日前出售 5 項非核心零售不動產；以及加權平均流通在外股數與 OP 單位為 4,720 萬。本指引亦包含我先前提到的兩個待定管線專案的影響。

However, this guidance excludes any impact from future acquisitions, asset sales other than the five retail assets or other capital markets activity with the exception of continuing the ATM program.

然而，本指引不包含未來收購的任何影響，亦不包含除 5 項零售資產以外的資產出售，或其他資本市場活動的影響（持續執行 ATM 計畫者除外）。

Before, we turn to Q&A, I'd like to make a comment about first quarter 2016. In the past, earnings in the first quarter of the year had been lowered than subsequent quarters. However, we do not see that being the case this year.

在進入問答之前，我想就 2016 年第一季補充說明。過去年度的第一季獲利通常低於後續季度；然而，今年我們不認為會出現這種情況。

I'll now turn the call back to Lou.

我現在把電話交回給 Lou。

Thank you, Mike and thank you for your time this morning and your interest in Armada Hoffler.

謝謝你，Mike，也謝謝各位今天早上的時間，以及對 Armada Hoffler 的關注。

Operator, we would like to begin the question-and-answer session.

接線員，我們想開始問答環節。

(Operator Instructions) Dave Rodgers, Robert W. Baird.

（接線員指示）Dave Rodgers，Robert W. Baird。

Just wanted to follow up quickly on what the activity looks like in the office leasing, obviously, with the dovetail into Main Street office but a little bit more color on just kind of what the type of activity you're seeing across the portfolio where you do have some availability, Lou?

我想快速追問一下辦公室租賃的活動情況。顯然這也與 Main Street 辦公室相呼應，但想請你再多補充一些細節：在你們投資組合中仍有一些可出租面積的部分，整體看到的活動類型大概是什麼樣子，Lou？

Dave, it's been pretty slow over the last quarter in office leasing. We're not seeing a lot of velocity of tenants. We've got a couple of things working that will add some occupancy to 4525 specifically, but right now, people are not doing as much looking as we would prefer. But ultimately we feel very comfortable with where we sit both at 4525, of course, the rest of portfolio is essentially leased.

Dave，過去一季辦公室租賃相當緩慢。我們沒有看到租戶有很高的成交速度。我們手上有幾件正在推進的案子，會特別為 4525 增加一些入住率，但目前大家看案的積極度沒有我們希望的那麼高。不過整體而言，我們對目前的位置很有信心，尤其是 4525；當然，其餘投資組合基本上都已出租。

Okay. That's helpful. Maybe a similar question on the apartments side, just trying to get a gauge of activity in your markets, what type of activity you're seeing. Obviously, occupancy is high, but just kind of curious about the available of lease as you look forward a little bit and the overall demand and ability to keep rates high in the assets that you do own?

好的，這很有幫助。公寓方面也問個類似的問題：我想了解你們市場的活動熱度、你們看到的是什麼樣的租賃活動。顯然入住率很高，但我想知道往前看一點，可出租量的情況，以及整體需求與你們所持有資產維持高租金水準的能力如何？

We're not seeing any blips out there at all. We always experienced in the fourth quarter and in the first couple of months of the year, things seem to slow down. This year isn't any exception, but we're seeing a lot of activity and we feel really good about where this is going to end up for this year.

我們完全沒有看到任何異常。我們一向在第四季以及年初前幾個月會感覺到速度放緩，今年也不例外，但我們仍看到很多活動，並且對今年最終的表現非常有信心。

Mike, a little bit on just maybe simplifying down the sources and the uses for this year between the asset sales, between some of the development spending that you have as you could run through its sources and uses for the year that would be helpful. Thank you.

Mike，能否把今年的資金來源與用途簡化說明一下？包括資產出售，以及你們的一些開發支出；如果你能把今年的 sources and uses 跑一遍會很有幫助。謝謝。

So over the past couple of months, we've certainly worked hard on getting the balance sheet set up for this coming year. We did the equity raise in December. We increased the capacity on our credit facility in January and we'll continue to use the ATM. We're also working with lending group on the credit facility to add more properties that we just purchased into the borrowing base and get more capacity from that standpoint.

過去幾個月，我們確實很努力把今年的資產負債表架構調整到位。我們在 12 月做了股權募資；1 月提高了我們信用額度（credit facility）的額度上限，並且會持續使用 ATM（隨市發行）。我們也正與信用額度的放款團（lending group）合作，把我們剛買進的更多物業納入借款基礎（borrowing base），以便從這個角度取得更多額度。

So we're working hard to get the balance sheet set up again. We believe we've done that.

所以我們正努力把資產負債表再次調整到位，我們相信已經做到。

Rob Stevenson, Janney Montgomery Scott.

Rob Stevenson，Janney Montgomery Scott。

Lou, how should we be thinking about the disposition of these five non-core retail assets? Is this a situation where they're out for bid now, and you take the proceeds when you get them? Are you sort of waiting until you have need to fund some development or you find another acquisition, just sort of use it as a tit for tat type of thing? How should we be thinking about this as it flows through 2016?

Lou，我們應該如何看待這五項非核心零售資產的處分？它們現在是在招標出售、拿到款就入帳嗎？還是你們會等到需要資金去支應某些開發案或找到另一個收購標的時，再把它當作一種對價交換（tit for tat）來運用？我們應該如何理解它在 2016 年的推進節奏？

We're anticipating selling all those assets in the first half of the year. We wanted to take our time. We did the evaluation as to whether we want to hold on to any of them, what kind of opportunities that there may be. And of course, it's always subject to change this new information but generally we've concluded that our capital is best employed elsewhere.

我們預期會在上半年把那些資產全部賣掉。我們想花點時間；我們也評估過是否要保留其中任何一項、以及可能存在的機會。當然，這一切都可能因新資訊而改變，但整體而言我們的結論是：我們的資本在其他地方能有更好的運用。

I'll now turn it over to Eric Smith and he'll tell you what kind of process is going through in order to get rid of those.

我現在把時間交給 Eric Smith，他會說明為了處分這些資產，我們正在進行什麼樣的流程。

It's a balance, obviously, between wanting to glean the most value out of the assets and obviously as Lou said, we're looking at the first half of the year as part of the balance sheet strategy that Mike articulated earlier. Having had this portfolio out in the market recently, there was obviously an opportunity to go back somewhat quickly after we closed on the portfolio at mid-January to see if any of those buyers who had been interested at a sub-portfolio or asset-specific level and already done due diligence were out there and we certainly took advantage of that and we'll glean here shortly the results of that.

這顯然是一種平衡：一方面希望從資產中取得最大價值；另一方面，如 Lou 所說，配合 Mike 先前提到的資產負債表策略，我們把上半年作為目標。由於這個投資組合不久前才在市場上推過，當我們在 1 月中旬完成交割後，很快就有機會回頭看看是否有一些買方先前對子投資組合或單一資產層級有興趣、且已做過盡職調查仍在市場上；我們確實把握了這個機會，並且很快就會取得那方面的結果。

That being said, if it makes sense to do a more fully marketed campaign to either reap value at the individual asset level, retire then, then what that quicker process may have created or to see if there is a portfolio buyer out there for these five non-core assets, we will certainly do that if we don't see the value we would like to see in the near term.

話雖如此，如果更完整的市場推廣（fully marketed campaign）在單一資產層級能取得更高價值、超過先前較快速流程可能帶來的結果，或是看看是否有投資組合買方願意收購這五項非核心資產；若我們短期內看不到想要的價值，我們一定會採取那樣的做法。

So, it's a bit of a balancing act on value as well as against that backdrop of the balance sheet strategy.

所以，這是在價值最大化與資產負債表策略背景之間的一種權衡。

Okay. And do you have any acquisitions that are in the pipeline right now that sort of lined up to close against these or Mike, is there is some level of dilution in the guidance from the first half sale of these properties without a corresponding redeployment of the proceeds?

了解。那你們目前管線裡有任何收購案，會配合這些資產出售同步完成交割嗎？或者 Mike，若上半年出售這些物業而沒有相對應把出售所得再投入，指引（guidance）中是否會出現某種程度的稀釋？

So Rob, the first thing we're looking at now is to get some capital back in the house. So we're going to look at the extent we can raise cash by selling these and then based upon where that is, what's coming out of other opportunities and where our balance sheet is we'll look at other acquisitions.

Rob，我們現在第一件事是先把一些資本收回來。所以我們會先看透過出售這些資產能回收多少現金；接著再依據那個結果、其他機會的進展，以及我們的資產負債表狀況，再來評估其他收購。

Yes, to dovetail off that, it won't surprise, I think this is consistent with what we've said in the past about our acquisition strategy. Obviously, our primary focus is doing acquisitions that look similar to the ones in the past 12 to 18 months, which were off market relationship based activity that can utilize operating partnership units with assets that fit well into our portfolio and not necessarily chasing marketed deals unless they may make countersense and check your box of leverages, leverage at one of our capability being on the development side or otherwise that's our acquisition strategy as we sit here today.

是的，延續這個話題，我想這不會讓人意外，也與我們過去談到的收購策略一致。顯然，我們的主要重點是做出與過去 12 到 18 個月類似的收購：也就是非公開市場、以關係為基礎的交易，能使用營運合夥單位（operating partnership units），並且資產能很好地融入我們的投資組合；我們不一定去追逐公開推售的案子，除非它們在某些情況下有其合理性，並且符合你所說的槓桿條件、或能運用我們在開發端或其他方面的能力。這就是我們目前的收購策略。

Okay, but any corresponding dilution from the first half sale of these assets is already included in the guidance range?

好的，但上半年出售這些資產所造成的任何相對應稀釋，已經包含在指引區間裡了嗎？

Yes, we've included the sale of those five non-core in the guidance.

是的，我們已在指引中納入出售那五項非核心資產。

Okay. And then what is Mike -- what's the incremental positive impact from any of the two projects that you talked about that you didn't into the pipeline yet because contracts haven't been closed, but they are in the guidance. Is it a couple of pennies, is it a penny, is it material?

好的。那 Mike——你提到的兩個專案中，有一些還沒正式納入管線，因為合約尚未完成，但已經反映在指引裡。它們帶來的增量正面影響大概是多少？是幾分錢、是一分錢，還是影響很大？

So it's broken down into two areas, Rob. One is in the interest income, so one of them is structured as a mezzanine debt. We have new guidance this year with interest income and the other piece, yes, in the backlog, I don't want to get into breaking down the pieces and parts at this time, but it's all included in our guidance.

Rob，這分成兩個部分。第一是在利息收入，其中一個是以夾層債（mezzanine debt）的形式架構。今年我們在指引中新增了利息收入；第二部分，是在積壓訂單（backlog）方面。我現在不想把各個細項拆開來講，但都已包含在我們的指引中。

Rob, another comment. Lou again, you brought up the question of dilution and we've concluded that dilution in our guidance for 2015. We've also included the dilution from selling the higher cap asset and slipping into lower cap assets. And I just want to stress to everybody the significance of that move, I mean essentially, while it will be really nice to have FFO over dollars here, which we would had we not done that transaction, what we did is we took over $100 million worth of facilities that were anchored by a regional law firm and an oil exploration equipment company and turned that into buildings that are anchored by people that sell food, dog food, sheets and towels and we feel really good about making that shift.

Rob，再補充一句。我是 Lou。你提到稀釋的問題，我們在 2015 年的指引中已經納入了稀釋。我們也把出售較高資本化率（cap rate）的資產、再轉進較低 cap rate 資產所造成的稀釋納入。我想強調這個調整的重要性：基本上，若我們沒有做那筆交易，從 FFO 的絕對金額來看會更好；但我們做的是，把超過 1 億美元、由一家區域性律師事務所與一家油氣探勘設備公司作為主力承租戶的資產，轉換成由賣食品、狗糧、床單與毛巾的業者作為主力承租戶的建物，而我們對這個轉變感到非常滿意。

You guys are still having positive earnings growth despite that, right?

即便如此，你們的獲利仍然是正成長，對吧？

Correct.

正確。

Is the midpoint of the guidance range basically is about 9% earnings growth even with that dilution in there?

指引區間的中位數，基本上大約是 9% 的獲利成長，即使已經把那個稀釋算進去了？

Yes, we are expecting growth again this year. Like I said, it could have been substantially higher had we been managing for the short-term, but thanks very much.

是的，我們預期今年仍會成長。就像我說的，如果我們只為短期目標來管理，成長幅度本來可以高得多；非常感謝。

John Guinee, Stifel.

John Guinee，Stifel。

So essentially you guys you build office, you sell office, you acquire retail. Looks to us like you're basically just selling the Kroger portfolio, looks to us like two of them are just pretty much stand-alone, 50% of the -- maybe 65% of the 406,000 square feet or it's just all Kroger credit. What does that $3.1 million income stream of primarily Kroger credit sell for?

所以基本上你們是蓋辦公、賣辦公、再收購零售。從我們看起來，你們基本上就是在出售 Kroger 投資組合；看起來其中兩個幾乎就是獨立資產，約占那 406,000 平方英尺的 50%——也許 65%——或者幾乎全都是 Kroger 的信用租約。那以 Kroger 信用為主的 310 萬美元收益流，能賣到什麼價格？

It's obviously, John, based on this -- or I guess despite the Kroger credit, you have a mix of assets here. You have some stronger assets in the South and Nashville locations based on those particular markets. That's why they are larger centers, higher quality assets overall. And then you have three smaller assets, more rural in nature, etcetera.

John，顯然，基於這個——或者說儘管有 Kroger 的信用，你這裡的資產組合其實是混合的。你在南部以及納什維爾地點有一些更強的資產，取決於那些特定市場。這也是為什麼它們是更大的中心、整體而言是更高品質的資產。然後你還有三個較小的資產，性質更偏鄉村等等。

So, when you think about the Kroger credit, but also the mix and location of the assets themselves, they are obviously going to trade higher than the going in cap rate on the whole portfolio, whether that's [a mid-8s or somewhere] slightly higher or lower, the market will bear out as we go through the process I articulated earlier, but that's our thought process right now.

所以，當你考量 Kroger 的信用，同時也考量資產本身的組合與區位時，它們顯然會以高於整體投資組合進場資本化率（cap rate）的水準成交；不論那是「8% 中段左右或某個」略高或略低的水準，市場會在我們依我先前所闡述的流程推進時給出答案，但這就是我們目前的思考。

So, if I look at page, there a lot numbers are floating around, I think Lou had said earlier, we generally don't acquire 6.5% cap real estate. Is it safe to say that if I'm looking at page 17 at $170 million at 7.2% cash cap rate and then you sell off these five Kroger anchored, does that mean the net cap rate on the balance of the 675,000 square foot Harris Teeter power center assets is a mid-6 cap rate? Is that what we're looking at?

所以，如果我看第……這裡有很多數字在飄，我想 Lou 先前說過，我們一般不會收購 6.5% cap 的不動產。那我看第 17 頁，170 百萬美元、7.2% 現金 cap rate，然後你們把這五個以 Kroger 為主力店（anchored）的資產賣掉，是否表示剩下那 675,000 平方英尺的 Harris Teeter power center 資產的淨 cap rate 是 6% 中段？我們看到的是這個嗎？

That's correct, John.

沒錯，John。

That's it, John. You've got it backwards.

就是這樣，John。你把它看反了。

Bill Crow, Raymond James.

Bill Crow，Raymond James。

Couple of questions for you. First question is if you go back to the time that you initially underwrote the acquisition of the retail portfolio, how have the cap rates on the five assets you're looking to sell, how has that changed? What are the brokers telling you about the increase in cap rates, if any, over the last four months, five months?

我有幾個問題。第一個問題是，如果回到你們最初承作（underwrite）這筆零售投資組合收購案的時點，你們打算出售的這五個資產，其 cap rate 有什麼變化？過去四、五個月 cap rate 若有上升，仲介（broker）跟你們怎麼說？

Bill, we're not seeing that happening. That may be something that's going to happen in the not too distant future given what's going on in the marketplace, but so far, the sales that we're seeing are holding up right with what the cap rates have been over the last six months.

Bill，我們沒有看到那種情況發生。考量到市場上正在發生的事，這也許在不久的將來會出現，但到目前為止，我們看到的成交仍然維持在過去六個月的 cap rate 水準。

So to make sure you guys understand, these five have -- we took the opportunity to see what kinds of possibilities there may be and what we're seeing is the same reason why they are going trade in the 8% to 9% range versus what the overall portfolio was. A couple of these are redevelopment opportunities, which we might have taken had they been more located in our markets or more of the larger size. Couple of them are older Krogers with much smaller than what their current footprint wants to be. So we're looking at the potentiality of a fully redevelopment on that and we decided that the returns just wouldn't there to occupy.

所以為了確保你們理解，這五個——我們把握機會去看看可能有哪些選項，而我們看到的是：它們之所以會以 8% 到 9% 的區間成交，而不是整體投資組合的水準，原因相同。其中有幾個是重建／再開發（redevelopment）機會，如果它們更位於我們的市場、或規模更大，我們可能會自己做。有幾個是較舊的 Kroger，面積比它們目前理想的店型小很多。因此我們在評估全面再開發的可能性，而我們判斷回報不足以讓我們持有並投入。

Eric, anything to add to that?

Eric，還有要補充的嗎？

No, I would only add maybe the perspective that again your comment is yet third consideration as we think about this process over the first two quarters and what offers to accept and how quickly to close them. Obviously, if the near-term process doesn't yield the results and we're contemplating going with a fuller process that would take the full two quarters that risk of possible cap rate movement that you mentioned obviously has to be a consideration there as we think about that timing tradeoff.

沒有，我只想補充一個角度：如你所說，這是我們在思考未來兩個季度這個流程時的第三個考量——要接受哪些報價、以及多快完成交割。顯然，如果短期流程沒有產出我們想要的結果，而我們考慮採用一個更完整、可能需要整整兩個季度的流程，那你提到的 cap rate 可能變動的風險，當然就必須納入考量，作為我們權衡時點取捨的一部分。

The other question I had really was on development pipeline and more the shadow pipeline if you, you guys know, gosh, the vast majority of developers in the Mid-Atlantic region, you're known them for a long time, what are they telling you about the their thought process given the economic data points, the stock market changes, anything dropping out of the shadow pipeline that surprises you, any just change in trend that you're seeing?

我另一個問題其實是關於開發管線（development pipeline），更偏向所謂的「影子管線」（shadow pipeline）。你們知道，中大西洋地區絕大多數開發商你們都認識很久了；就經濟數據、股市變化等因素，他們跟你們說他們的思考是什麼？影子管線裡有沒有什麼退出讓你意外的？你看到任何趨勢變化嗎？

Bill, I have to say no, and you've got to understand our perspective. If in fact we're headed for a recession, which we all hope is not the case, it would be our fifth recession that we will counter. And so they all have the same characteristics. There is a tremendous amount of deal flow out there right now. But whether it's in boom times or recessionary times, you can tell the project that should stay away from. And we stick to that [natty] and with a company of our size, it's not markets that you look at, it's sub-markets and within those markets, it's locations. And what we're looking at, we're cherry-picking is the strength that's driven by high drivers and credit tenants and that always a much smaller subset of what's out there.

Bill，我得說沒有，而且你得理解我們的角度。若我們真的正走向衰退——我們都希望不是——那將是我們要面對的第五次衰退。所以它們都有相同特徵：現在市場上有大量案源（deal flow）。但不論是景氣繁榮或衰退，你都能分辨哪些案子應該避開。我們就堅持那個原則；以我們這種規模的公司來說，你看的不是「市場」，而是「次級市場」（sub-markets），而在那些市場裡，你看的是「地點」。我們在挑選的是由高車流／人流（high drivers）與信用良好的主力租戶（credit tenants）所驅動的強勢案子，而那永遠只是市場上很小的一個子集合。

So, my guess is, with credit tightening, you're going to see a lot less of these [spring projects getting off the ground, which is just buying] by us, and you'll continue to see really strong projects, they are well under written move forward. And so, we're not seeing anything.

所以我猜，隨著信用收緊，你會看到這類「春天就能開工」的案子少很多——那種案子我們只是去買——而你會繼續看到真正強的案子、承作（underwrite）得很扎實的案子繼續往前走。所以我們沒有看到什麼異常。

If it makes into our pre-development group, that means it was one out of 15 or 18 projects that we were evaluating and so once it makes it there, I don't want to say it's both group, but it's pretty down in close.

如果它能進到我們的前期開發團隊（pre-development group），那代表它是在我們評估的 15 或 18 個案子中脫穎而出的 1 個；所以一旦進到那裡，我不想說它是「板上釘釘」，但已經相當接近了。

Anything you're seeing on the retail side in reaction to the consumer or anything that's going on in the retail side that makes you concerned, more tenants on the watch list or anything like that?

在零售端，你有看到任何因消費者狀況或零售端正在發生的事情而讓你擔心的反應嗎？例如更多租戶被列入觀察名單之類？

Again, it's a great question, it's a broad one. In growth anchored retail, we're not seeing any direction at all. Our small shops are doing well, we're essentially 100% leased for crossing that subset of the portfolio. On the larger projects and like a Town Center, where you're looking at the fashion and specialty, there's some nervous speaking out there and if you've seen the results that came out of Urban Outfitters or even Lululemon, they are nervous, their sales are doing fine right now. There's still a lot of lead off from the Internet. But we're seeing a lot of activity. In fact, we hope in the next month or so, to make a couple more announcements in that regard.

同樣地，這是個很好的問題，但範圍很廣。在以成長型主力店（growth anchored）的零售上，我們完全沒有看到任何方向性的變化。我們的小店（small shops）表現很好，在那個子投資組合裡我們基本上接近 100% 出租。在較大型的專案、像 Town Center 這種你會看時尚與專門店（fashion and specialty）的地方，市場上確實有些緊張情緒；如果你看 Urban Outfitters 甚至 Lululemon 的結果，他們是有點緊張，但目前銷售仍然不錯。網路帶來的分流仍然很大。但我們看到很多活動。事實上，我們希望在接下來一個月左右，能在這方面再發布幾項公告。

I would add one other recent data point. As we went through the diligence process on the portfolio, we obviously talked to tenants recently in our role as our asset management group and their role of managing our stabilized assets, but we obviously excellent those touch points with those tenants as we're going through that due diligence process. And so it's a fairly recent data point of having all those conversations and what we found was that there were certainly, as we've already spoken to I think in the last call, a handful of a larger box tenants who had some comments about some downsizing in the 3,000 square feet to 5,000 square feet range. We obviously looked at that closely to make sure we can really set space that was in good locations in the shopping centers. But we didn't hear anybody holistically moving out of markets or trying to close such stores and refocus on others in the marketplace. So there were some things on the margins from that experience but nothing wholesale that gave us a thought for concern.

我再補充一個近期數據點。當我們在投資組合上進行盡職調查（diligence）時，我們當然也與租戶做了近期溝通：一方面我們的資產管理團隊負責管理已穩定（stabilized）的資產，另一方面租戶也在其角色中與我們互動；但在盡職調查過程中，我們顯然也加密了與這些租戶的接觸點。因此這是一個相當新的數據點：我們做了所有那些對話後發現，確實如我們在上一通電話中提到的，有少數幾個大型盒子店（larger box tenants）提到在 3,000 到 5,000 平方英尺的範圍內有些縮店（downsizing）的想法。我們當然仔細檢視，確保我們能重新配置（re-tenant）那些位於購物中心良好位置的空間。但我們沒有聽到有人整體性地撤出市場、或試圖關閉這類門店並把重心轉向市場上的其他店點。所以從那次經驗來看，有一些邊際上的變化，但沒有任何大規模的情況會讓我們擔心。

I think I'll hold off on asking you if you are in discussions with Amazon and their brick and mortar efforts.

我想我先不問你們是否正在與 Amazon 討論他們的實體店（brick and mortar）布局。

Craig Kucera, Wunderlich.

Craig Kucera，Wunderlich。

Lou, I appreciate your comments on the recession scenario and would like to revisit that. Really in regards to how municipalities react as they start to see their local economy slowdown, does that change the way they look at the public-private partnerships? Do they look too more or do they look too less, what has been your experience?

Lou，我很感謝你對衰退情境的評論，想再回到這個話題。主要是關於當各市政單位開始看到其地方經濟放緩時，他們會如何反應；這是否會改變他們看待公私合夥（public-private partnerships）的方式？他們會更傾向採用，還是更少採用？以你的經驗來看如何？

Craig, it's been our experience over three decades that they ramp up activity in those scenarios. If you think about it, a basic tenant of municipal governments is that expenses are going to grow faster than income and so in periods like this, where that disparity is even wider, they're even more looking to disproportionately affect the tax rate.

Craig，依我們三十年的經驗，在那種情境下他們會加大相關活動。如果你想想看，市政政府的一個基本原則是支出成長會快於收入；因此在像這樣的時期，這種差距更大，他們就更會尋求以不成比例的方式影響稅率。

So for relatively small amount of money and of course stronger amounts of value, you can essentially money at 0% right now, where fairly small amount of money they can incentivize by something. Our issue, and again as it has been in the last four recessions is no matter how much money someone might be throwing at, you still got to decide whether or not it's going to be a good long-term project.

所以用相對少量的資金，當然能帶來更強的價值，你基本上現在可以以 0% 的成本取得資金；用相當少的錢，他們就能透過某些方式提供誘因。我們的問題是——而且如同過去四次衰退一樣——不管有人願意砸多少錢，你仍然得判斷這是否會是一個長期來看好的專案。

Some of these things need municipal help because they really shouldn't be built, and so what we pride ourselves here three decades later in doing is separating that wheat from the chaff into something that's going to stand the test of time and very much like Tower Center. Town Center was born right on the heels of 9/11. It went through 2007 and 2008 and it had not had any issues throughout.

其中有些案子需要市政協助，因為它們其實就不該被興建；因此我們在這裡三十年後仍引以為傲的是，能把良莠分辨出來，挑出能經得起時間考驗的案子，就很像 Tower Center。Town Center 是在 9/11 之後不久誕生的，經歷了 2007 與 2008 年，期間完全沒有出過問題。

So you've got to make sure that you really cherry-pick the best opportunity. But long answer to a short question. It's part of our formula for recessions, construction ramps up, not commercial construction but institutional construction, medical construction and government construction because they want to take advantage of lower prices and public-private partnerships ramp up. What suffered is obviously is your garden variety retail office development.

所以你必須確保自己真的精挑細選最好的機會。不過用長答案回短問題：這是我們面對衰退的公式之一——施工會增加，但不是商業施工，而是機構型施工、醫療施工以及政府施工，因為他們想利用較低的價格，而公私合夥也會升溫。受到衝擊的顯然是一般常見的零售與辦公室開發。

I appreciate the color. How forward looking are these municipalities? Are they looking 12 months in the rearview mirror, are they thinking ahead as far as what may or may not be leased?

我很感謝這些補充。這些市政單位有多前瞻？他們是看後照鏡、回看過去 12 個月，還是會往前想，例如未來可能或不可能出租的情況？

Again, it's really interesting question and I could go on for an hour on that one. Most municipalities don't have the fortitude to see past the next election cycle, and so a lot of them are looking for that quick hit and we stay away from those guys. There are few and coincidentally, it seems to go along with really high credit rating, there are few that have 10 and 15 and 20 year horizon. And those are the people that we grab attention.

這確實是個很有意思的問題，我可以講上一小時。大多數市政單位沒有那種能耐去看過下一個選舉週期，所以很多人是在追求短期的快速成果，而我們會避開那類人。有少數——而且巧合的是，似乎與非常高的信用評等相伴——有 10 年、15 年、20 年的視野；那才是我們會特別關注的對象。

My last question is just on the balance sheet. Given that the futures market now doesn't seem to be seeing an interest rate hike until possibly till 2018, you guys have heavily used floating rate debt with swaps. Do you anticipate changing that in this environment? I would have guessed you probably are going to stick with what seems to be working as long as the interest rates are remaining low and expected to remain low?

我最後一個問題是關於資產負債表。鑑於期貨市場目前似乎要到可能 2018 年才會看到升息，你們大量使用浮動利率負債並搭配利率交換（swaps）。在這樣的環境下，你們是否預期會改變作法？我猜只要利率維持低檔、且預期仍會維持低檔，你們大概會繼續採用目前看起來有效的策略？

Yes. Craig, we're going to consider and look at -- continue to look at hedges. We find that we've been doing more caps actually than [swaps. I'd define caps as] a really economical way to hedge interest rates and Lou and I've been talking here over the last couple of days where we're getting into a real point right now as well buy some more caps that's really, really cheap insurance.

是的。Craig，我們會持續考量並檢視——繼續檢視避險工具。我們發現其實做得更多的是利率上限（caps），而不是[交換（swaps）。我會把 caps 定義為]一種非常具成本效益的利率避險方式。Lou 和我這幾天也在討論，我們現在也正處在一個點上，可能會再買一些 caps，這真的是非常、非常便宜的保險。

Laura Engel, Stonegate Capital.

Laura Engel，Stonegate Capital。

Wanted to see if we could touch back on the guidance just a little bit. One thing that was a bit higher than I expected was the acquisition development and other costs and I wondered if that was -- what was recorded for the year, if that was a level we should expect for next year and if that includes I guess some of these disposition costs related to the transactions this past year as well?

我想再稍微回到指引（guidance）上。有一項比我預期高一些的是收購、開發及其他成本，我想了解那是——那是今年認列的金額嗎？那是否是我們明年應該預期的水準？另外我想這是否也包含了與今年這些交易相關的一些處分成本？

So we certainly had a lot of that cost in the fourth quarter and a lot of it had to do with this acquisition of the $170 million portfolio. From a GAAP standpoint, we're going to be expensing those costs as they take place and most of the due diligence and legal work was all done in the fourth quarter since we closed right after the first to hear on that.

我們確實在第四季發生了不少這類成本，其中很大一部分與收購 1.7 億美元投資組合有關。從 GAAP 的角度，我們會在成本發生時就費用化，而大部分的盡職調查與法律工作都在第四季完成，因為我們在第一個——你們也聽到——之後不久就完成交割。

Looking out to 2016, it's tough for me to give you a number where it's going to be, it certainly depends on what kind of acquisition activity we have out there but I'd be surprised if we acquired $170 million portfolio and spend that kind of money.

展望 2016 年，我很難給你一個數字說會是多少，這當然取決於我們在外部有多少收購活動；但如果我們又收購一個 1.7 億美元的投資組合並花那麼多錢，我會感到意外。

We don't see that in the card and that's one of the primary reasons why we report normalized FFO because we're opportunistic in acquisitions and dispositions and don't have a specific plan.

我們不認為那會發生，而這也是我們報告標準化 FFO（normalized FFO）的主要原因之一，因為我們在收購與處分上是機會導向，並沒有特定計畫。

And then also related to the guidance, on the construction company guidance, you mentioned some of the contracts. Can you just review one more time that I guess the timing on that and you did say there is I guess significant potential upside to that guidance number because I think unlike the gentleman earlier, I have numbers all over the sheet but is that guidance actually shows a bit of a decrease over the full year for 2015 as it stands but it doesn't factor in this contract, is it correct?

另外也與指引相關，關於營造公司的指引，你提到一些合約。你能不能再回顧一次我想其時間點？而且你也說那個指引數字可能有顯著的上行空間；因為我跟前面那位先生不一樣，我的表上數字到處都是——但那個指引看起來相較 2015 全年其實是略為下降，不過它沒有把這份合約算進去，這樣理解正確嗎？

Correct. It is a decrease from last year. 2015 was a really strong year for the construction company. One of the highest that I can remember, generating those kinds of profits. So yes we see it going down a little. It does include a couple of contracts that are not signed. We expect to get firmed up here in the next couple of weeks to months. For instance, on Harbor Point, we've started the construction, so we'll be getting a notice to proceed. I think we're operating under a couple of million dollar proceed contract, we do some site work well, we negotiate out the GMP here which is M&A.

正確。它確實比去年下降。2015 年對營造公司來說是非常強勁的一年，是我記憶中最高的年份之一，能產生那樣的獲利。所以是的，我們看到它會小幅下滑。它確實包含了幾份尚未簽署的合約，我們預期在接下來幾週到幾個月內會敲定。例如 Harbor Point，我們已經開始施工，所以我們會收到開工通知（notice to proceed）。我想我們目前是以一份數百萬美元的開工合約在運作，我們先做一些場地工程，同時把 GMP（最高保證價格）談出來，這是 M&A。

And all of my other questions have been addressed. Again, sounds like 2016 is going be just a great year. So I'm looking forward to seeing how it progresses.

我其他問題都已經被回答了。再次強調，聽起來 2016 年會是非常棒的一年。我也很期待看看進展如何。

Yes, to reiterate that we're very excited about 2016. The Company is set up well. We've got really good projects in the pipeline. We think it has been strong across the retail and multi-family front and hopefully we'll see a little bit more in the office, but we look forward to having another great year.

是的，再重申一次，我們對 2016 年感到非常興奮。公司已經準備得很好；我們的案源管線裡有非常好的專案。我們認為零售與多戶住宅（multi-family）方面一直都很強，希望辦公室也能多一些；我們期待再迎來一個很棒的一年。

Operator, are there any more questions?

接線員，還有其他問題嗎？

We have no further questions.

目前沒有其他問題。

Great. Well, thanks everybody for your time this morning. We look forward, like we said that we anticipate having a few announcements in the next several weeks [that changes out this] pipeline. So stay tuned and thanks again.

很好。那麼，感謝各位今天早上的時間。我們也期待——如同我們所說——我們預期在接下來幾週會有幾項公告[會改變這個]管線。所以敬請期待，再次感謝。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

各位女士、先生，今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與，祝您有美好的一天。