AH Realty Trust, Inc (AHRT) 2016 Q1 法說會逐字稿

Welcome to Armada Hoffler's first-quarter 2016 earnings conference call. (Operator Instructions.) As a reminder, this conference call is being recorded today, Tuesday, May 3, 2016.

歡迎參加 Armada Hoffler 2016 年第一季財報電話會議。（接線員指示。）提醒各位，本次電話會議將於今日（2016 年 5 月 3 日，星期二）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 first-quarter 2016 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 first-quarter earnings, along with our quarterly supplemental package, was distributed this morning.

各位早安，感謝您參加 Armada Hoffler 2016 年第一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，兩位將可回答提問。公布第一季盈餘的新聞稿以及我們的季度補充資料包已於今早發出。

A replay of this call will be available shortly after the conclusion of the call through June 3, 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 remarks made herein are as of today, May 3, 2016, and will not be updated subsequent to this initial earnings call.

本次電話會議結束後不久將提供重播，並可收聽至 2016 年 6 月 3 日。重播的撥入號碼已載於盈餘新聞稿。對於收聽本次簡報重播的聽眾，我們提醒：本次發言係截至今日（2016 年 5 月 3 日）為準，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. 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.

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、投資組合績效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。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美國證券交易委員會（SEC）提交或提供之文件中所討論的風險因素。

We'll 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, 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，可於我們網站 www.armadahoffler.com 取得。

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

現在我想把電話會議交給我們的執行長 Lou Haddad。Lou？

Thanks, Mike. Good morning and thank you for joining us today. This morning we reported normalized FFO per share of $0.25. Based on our revised estimates for the year, we've raised both the top and bottom ends of our 2016 normalized FFO guidance range. We continue to successfully execute across all areas of our business, demonstrated by significant year-over-year growth in NOI, same-store NOI, and normalized FFO. I'll discuss the highlights of the quarter before turning the call over to Mike to discuss our quarterly results and 2016 guidance in detail.

謝謝你，Mike。各位早安，感謝今天加入我們。今早我們公布每股標準化 FFO 為 0.25 美元。基於我們對全年修訂後的估計，我們已上調 2016 年標準化 FFO 指引區間的上限與下限。我們持續在各項業務領域成功執行，從 NOI、同店 NOI 與標準化 FFO 的顯著年增長可見一斑。我將先說明本季重點，之後再把電話交給 Mike，請他詳細說明季度結果與 2016 年指引。

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. As you will see with the number of high-quality transactions that I will discuss this morning, we continue to aggressively manage our portfolio in order to position the Company for sustained long-term value creation.

過去 37 年來，我們這家不動產公司的根本且指導性原則始終不變——在目標市場投資並開發最高品質的不動產。正如各位將在我今早要談到的多筆高品質交易中所見，我們持續積極管理投資組合，以使公司能夠創造可持續的長期價值。

We started the year with our acquisition of a $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 anchored by brand-name credit tenants and well-positioned along the I-85 corridor between Raleigh-Durham and Greenville. Four of the non-core acquired assets are currently under contract or LOI for an aggregate sales price of $32 million. We expect to close on all four dispositions this year, as we had previously anticipated. The fifth non-core asset is still under evaluation.

我們以收購一個價值 1.705 億美元的零售投資組合展開今年，該組合涵蓋 11 項資產、總面積 110 萬平方英尺。所收購投資組合的核心由 6 座零售中心構成，皆由具品牌知名度且信用良好的主力租戶進駐，並且位於 I-85 走廊上、介於羅利—達勒姆（Raleigh-Durham）與格林維爾（Greenville）之間的優越地段。所收購的 5 項非核心資產中，有 4 項目前已簽約或簽署意向書（LOI），合計出售價格為 3,200 萬美元。我們預期如先前所估，將於今年完成這 4 項處分。第 5 項非核心資產仍在評估中。

We partially funded this portfolio acquisition with the net proceeds from our sales of the Oceaneering International and Richmond Tower office buildings. This allowed us to redeploy the equity from predominantly single-tenant office assets in the Richmond and Hampton Roads market into a portfolio of high-quality retail assets in the Carolinas.

我們以出售 Oceaneering International 與 Richmond Tower 辦公大樓的淨收益，部分資助了此次投資組合收購。這使我們得以將原本主要配置於里奇蒙（Richmond）與漢普頓路區（Hampton Roads）市場之單一租戶辦公資產的股權，重新部署至卡羅來納地區一個高品質的零售資產投資組合。

With this transaction, we accomplished three major objectives. First, we increased our presence in the major Carolina markets. Second, we decreased our overall risk profile. And third, we deferred the taxes on the significant gains realized on the sales of both office buildings.

透過這筆交易，我們達成三項主要目標。第一，我們提升了在卡羅來納主要市場的布局。第二，我們降低了整體風險輪廓。第三，我們遞延了出售兩棟辦公大樓所實現之重大資本利得稅負。

Continuing the theme of investing in high-quality real estate, this quarter we announced our participation in a joint venture to develop One City Center in downtown Durham, North Carolina. This is a 27-story mixed-use project that is expected to include 130,000 square feet of office space, 22,000 square feet of street-level retail space, a two-level underground parking garage, and a residential component. The office space will be anchored by Duke University, which has agreed to lease 55,000 square feet.

延續投資高品質不動產的主軸，本季我們宣布參與一項合資開發案，將於北卡羅來納州達勒姆（Durham）市中心開發 One City Center。該案為 27 層樓的複合用途專案，預計包含 130,000 平方英尺的辦公空間、22,000 平方英尺的街邊零售空間、兩層地下停車場，以及住宅組成。辦公空間將由杜克大學（Duke University）作為主力租戶，該校已同意承租 55,000 平方英尺。

As a minority partner in the development joint venture, we intend to retain ownership of the $34 million office and retail components of the project upon completion. Our construction company will also serve as general contractor for the overall project, with expected completion in mid-2018.

作為該開發合資案的少數股權夥伴，我們計畫在專案完工後保留該案中價值 3,400 萬美元的辦公與零售組成之所有權。我們的營造公司亦將擔任整體專案的總承包商，預計於 2018 年年中完工。

Just over a week ago, we announced our $42 million investment in the Residences at Annapolis Junction Town Center. With estimated completion in the first quarter of 2018, the project will pursue LEED silver certification and feature 416 apartment units with structured parking. This residential project represents the multifamily component of a planned 18-acre mixed-use development conveniently located adjacent to a MARC commuter rail station. Upon completion of all phases, the development will include office and retail space as well as a limited-service hotel. Most notably, the project is located approximately two miles from Fort Meade, Maryland's largest employer, the nation's third-largest Army installation, and home to both the National Security Agency and the US Cyber Security Command, as well as an additional 6 million square feet of commercial office park space.

就在一週多前，我們宣布對 Annapolis Junction Town Center 的 Residences 專案投資 4,200 萬美元。該專案預計於 2018 年第一季完工，將申請 LEED 銀級認證，並規劃 416 戶公寓單位及結構式停車設施。此住宅專案為一項規劃中的 18 英畝複合用途開發案之多戶住宅（multifamily）組成，地點緊鄰 MARC 通勤鐵路車站，交通便利。待各期工程全數完成後，該開發案將包含辦公與零售空間，以及一家有限服務型飯店。尤其值得一提的是，該專案距離馬里蘭州最大雇主 Fort Meade 約兩英里；Fort Meade 為全美第三大陸軍基地，亦為美國國家安全局（NSA）與美國網路司令部（US Cyber Security Command）所在地，周邊另有 600 萬平方英尺的商用辦公園區空間。

As both the mezzanine lender and the project's general contractor, we realize 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 an 88% interest in the project at cost upon completion, we preserve a healthy wholesale-to-retail spread.

由於我們同時擔任夾層貸款人（mezzanine lender）與專案總承包商，我們在漫長的開發與施工期間可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（lease-up）階段對資產負債表造成壓力。透過我們在完工後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（wholesale-to-retail spread）。

One City Center and the Residences at Annapolis Junction Town Center, along with the Point Street Apartments at Baltimore's Inner Harbor, represent the next building blocks in expanding our portfolio of the highest-quality real estate. Our broad-based capabilities and track record allow us to selectively invest in some of the projects in our target markets. We remain confident that over time, the quality of our assets and the lower cap rates they command will translate into a higher NAV for the Company as a whole.

One City Center 與 Annapolis Junction Town Center 的 Residences 專案，連同巴爾的摩內港（Inner Harbor）的 Point Street Apartments，構成我們擴充最高品質不動產投資組合的下一批基石。我們廣泛的能力與過往實績，使我們能在目標市場中選擇性投資部分專案。我們仍然有信心，隨著時間推進，我們資產的品質以及其所對應的較低資本化率（cap rates），將轉化為公司整體更高的淨資產價值（NAV）。

Moving from our joint venture platform and mezzanine loan program to acquisitions, today we announced our acquisition of Southgate Square, a retail center located in Colonial Heights, Virginia, just south of Richmond. Southgate Square adds approximately 220,000 square feet of 100% occupied retail space to our portfolio. The center is anchored by a brand-new Burlington store as well as Michael's, Staples, and PetSmart. The center is strategically situated within the submarket adjacent to the 900,000-square-foot Southpark Mall, as well as a Walmart SuperCenter and across the street from Dimmock Square, which we acquired in 2014.

從合資平台與夾層貸款計畫轉向收購方面，今天我們宣布收購 Southgate Square，這是一座位於維吉尼亞州 Colonial Heights、里奇蒙以南的零售中心。Southgate Square 為我們的投資組合新增約 220,000 平方英尺、出租率 100% 的零售空間。該中心由全新開幕的 Burlington 店作為主力店，另有 Michael's、Staples 與 PetSmart 進駐。該中心策略性地位於一個次級市場內，緊鄰 900,000 平方英尺的 Southpark Mall，亦鄰近 Walmart SuperCenter，並且位於我們於 2014 年收購之 Dimmock Square 的街對面。

We acquired the asset for a combination of approximately $21 million of debt and nearly 1.6 million operating partnership units, increasing our capital base and generating earnings for all shareholders. The acquisition is expected to be accretive by $0.01 to 2016 normalized FFO per share and $0.015 per share on an annualized basis. This opportunity was born out of the same longstanding relationship that led to our acquisition of Dimmock Square nearly two years ago and is an example of a partner taking a second meaningful equity position in our Company.

我們以約 2,100 萬美元的債務以及近 160 萬個營運合夥（operating partnership）單位的組合完成收購，進一步擴大我們的資本基礎，並為所有股東創造盈餘。預期該收購將使 2016 年每股標準化 FFO 增加 0.01 美元，按年化基礎計算每股增加 0.015 美元。此機會源自同一段長期合作關係，該關係亦促成我們近兩年前收購 Dimmock Square；這也顯示合作夥伴再次在本公司取得具實質意義的第二筆股權部位。

Shifting to the foundation of our Company, our core portfolio, the stabilized assets continue to outperform. The first quarter of 2016 marked our seventh consecutive quarter of significant same-store NOI growth. At the end of the quarter, our core portfolio occupancy stood at just under 95%. Occupancy across all product types at the end of the quarter remain in the mid-90s. While we continue to enjoy organic growth in our stabilized portfolio, it should be understood that the primary growth engine of our Company is our investment and development platform.

回到公司根基——我們的核心投資組合，已穩定的資產持續優於預期。2016 年第一季是我們連續第七季同店 NOI 顯著成長。截至本季末，我們核心投資組合的出租率略低於 95%。本季末各產品類型的整體出租率仍維持在 90% 中段。雖然我們持續享有已穩定投資組合的內生成長，但也應理解，公司主要的成長引擎是我們的投資與開發平台。

Next, I'll briefly touch on the projects in our active development pipeline. Both Johns Hopkins Village and Lightfoot Marketplace are on track for mid-2016 delivery. Preleasing for Johns Hopkins Village has been robust. As of today, 62% of the residential components and over half of the retail space is preleased. We expect to open for the fall semester on time and on budget and are confident that the asset will reach full stabilization next year. Lightfoot Marketplace currently stands at over 70% preleased, with the anchor Harris Teeter store scheduled to open in July.

接下來，我將簡要說明我們積極開發管線中的專案。Johns Hopkins Village 與 Lightfoot Marketplace 皆按計畫於 2016 年年中交付。Johns Hopkins Village 的預租表現強勁。截至今日，住宅部分已有 62% 完成預租，且零售空間已有超過一半完成預租。我們預期可如期、如預算在秋季學期前開幕，並有信心該資產將於明年達到完全穩定。Lightfoot Marketplace 目前預租率已超過 70%，其中主力店 Harris Teeter 預計於 7 月開幕。

Turning to our third-party construction business, our progress on the $170 million Exelon Tower within Baltimore's Harbor Point continues on schedule towards completion this spring. Adjacent to the Exelon site, construction on Point Street Apartments is well underway. Additionally, we have mobilized our construction company on both the One City Center and Annapolis Junction projects. With over $176 million in backlog and several promising opportunities in the pipeline, we expect this segment of our business to continue to generate profits at the high end of our historical average.

轉到我們的第三方營造業務，我們在巴爾的摩 Harbor Point 的 1.7 億美元 Exelon Tower 專案進度持續按計畫推進，預計於今年春季完工。在 Exelon 工地旁，Point Street Apartments 的施工也正順利進行。此外，我們的營造公司已在 One City Center 與 Annapolis Junction 兩個專案上完成進場動員。憑藉超過 1.76 億美元的在手訂單（backlog）以及管線中數個具潛力的機會，我們預期此業務部門將持續創造接近我們歷史平均高端水準的利潤。

With that, I turn the call over to Mike, and then we'll take your questions. Mike?

接下來我把電話交給 Mike，之後我們將回答各位的提問。Mike？

Thanks, Lou. Today I want to cover the highlights of the quarter, thoughts on our balance sheet, and additional details on our 2016 guidance.

謝謝，Lou。今天我想說明本季重點、我們對資產負債表的看法，以及 2016 年財測指引的更多細節。

This morning we reported FFO of $0.18 per share and normalized FFO of $0.25 per share, which was at the high end of our expectations. This quarter, we reported gains on the sale of real estate of $27 million resulting from two transactions. The first, a gain of $437,000 from the sale of the police precinct to the City of Newport News. This was basically a construction contract structured as a sale with the gain equating to our construction fee. Unlike previous sales, this gain is included in FFO because the asset was never placed in service and was a sale of inventory.

今天早上我們公布每股 FFO 為 0.18 美元、每股標準化 FFO（normalized FFO）為 0.25 美元，落在我們預期的高端。本季我們因兩筆交易認列不動產出售收益 2,700 萬美元。第一筆為將警察分局出售給 Newport News 市所產生的 43.7 萬美元收益。這基本上是一份以出售形式架構的營造合約，該收益相當於我們的施工費。不同於先前的出售案，該收益納入 FFO，因為該資產從未投入使用，且屬於存貨出售。

The second transaction is a sale of the Richmond Tower office building, which resulted in a gain of over $26 million that is excluded from FFO. Including this sale, we have recognized over $44 million in gains since the beginning of last year. As we've discussed in the past, asset sales and capital recycling will continue to be an element of future shareholder value creation. On a related note, because we structured these transactions as 1031 tax-free exchanges, the gains from these sales are not taxable, as tax efficiency remains one of our corporate objectives.

第二筆交易為出售 Richmond Tower 辦公大樓，產生超過 2,600 萬美元的收益，該收益不納入 FFO。包含此筆出售在內，自去年年初以來我們已認列超過 4,400 萬美元的出售收益。如同我們過去所討論，資產出售與資本再循環將持續是未來為股東創造價值的一環。相關地，由於我們將這些交易架構為 1031 免稅交換，這些出售收益不需課稅；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 property acquisition costs, development effort pursuit costs, and mark-to-market adjustments for interest rate derivatives. The most notable of these is a non-cash adjustment of $2.4 million related to the $15 million swap walk on our term loan. The other adjustment, $704,000 in acquisition, development, and other pursuit costs, which is largely due to the January portfolio acquisition.

標準化 FFO 的計算請參閱補充資料第 10 頁。本季排除項目包括物業收購成本、開發投入追案成本，以及利率衍生性商品的按市價評價調整。其中最顯著的是與我們定期貸款 1,500 萬美元 swap walk 相關的 240 萬美元非現金調整。另一項調整為 70.4 萬美元的收購、開發及其他追案成本，主要源自 1 月的投資組合收購。

We had our seventh consecutive quarter of same-store NOI growth. Same-store NOI growth was positive 2.2% on a GAAP basis and 3.8% on a cash basis.

我們已連續第七季實現同店 NOI 成長。同店 NOI 成長在 GAAP 基礎下為正 2.2%，在現金基礎下為 3.8%。

At the end of the quarter, our core operating portfolio occupancy was 94.7%, with office at 95%, retail at 95.1%, and multifamily at 93.5%. The slight decrease in occupancy is due to our recent asset recycling activity.

截至季末，我們核心營運投資組合的出租率為 94.7%，其中辦公為 95%，零售為 95.1%，多戶住宅為 93.5%。出租率的小幅下降係因我們近期的資產再循環活動所致。

On the construction front, we reported a segment gross profit in the first quarter of $1.8 million on revenue of $37 million. At the end of the first quarter, the Company had a third-party construction backlog of $176 million, which does not include the $68 million Annapolis Junction construction contract that was signed in April.

在營造方面，我們第一季營造事業部門在 3,700 萬美元營收下，報告部門毛利為 180 萬美元。截至第一季末，公司第三方營造在手訂單為 1.76 億美元，尚未包含 4 月簽署、金額 6,800 萬美元的 Annapolis Junction 營造合約。

Now turning to our balance sheet, we continue to take actions to enhance flexibility and strengthen our balance sheet, including increasing the capacity of our credit facility, hedging our interest rate exposure, and continued use of the ATM program. During the first quarter we added eight properties to the credit facility borrowing base and increased the capacity by $50 million to $250 million. This facility is now structured with a $100 million term loan and $150 million revolver.

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，包括提高授信額度、對利率曝險進行避險，以及持續使用 ATM 計畫。第一季我們將 8 項物業納入授信的借款基礎（borrowing base），並將額度增加 5,000 萬美元至 2.5 億美元。該授信目前架構為 1 億美元定期貸款與 1.5 億美元循環額度（revolver）。

In addition, we continued to use the ATM program last quarter, raising $10.1 million of gross proceeds at an average price of $10.76 per share. This amount was higher than our expectations due to a couple of reverse inquiries. With the announcement of two new development projects, this quarter we decided to take advantage of these inquiries to use capital in an efficient manner. We intend to continue the use of the ATM program at this level if market conditions are favorable in order to continue strengthening the balance sheet.

此外，我們上季持續使用 ATM 計畫，以每股平均 10.76 美元募集 1,010 萬美元的總募資額。由於有幾筆反向詢價（reverse inquiries），該金額高於我們的預期。隨著兩個新開發專案的公告，本季我們決定把握這些詢價，以更有效率的方式運用資本。若市場條件有利，我們打算以此水準持續使用 ATM 計畫，以進一步強化資產負債表。

During the quarter we closed on the 11-property portfolio acquisition. This was funded through the 1031 proceeds from the sale of Oceaneering, Richmond Tower, as well as cash from the credit facility. The core properties from this acquisition are unencumbered or added to the borrowing base of the credit facility. Four of the five non-core properties are under contract or LOI for an aggregate sales price of $32 million. The proceeds from these sales will be used to pay down the revolving credit facility.

本季我們完成 11 項物業投資組合的收購。資金來源包括出售 Oceaneering 與 Richmond Tower 所得的 1031 交換款項，以及授信額度提供的現金。此次收購的核心物業為無擔保（unencumbered）或已納入授信的借款基礎。5 項非核心物業中的 4 項已簽約或簽署意向書（LOI），合計出售價格為 3,200 萬美元。這些出售所得將用於償還循環授信額度。

At quarter end we had total outstanding debt of $472 million, including $101 million outstanding under the $150 million revolving credit facility. We continue to evaluate our exposure to higher interest rates and look for opportune times to enter into hedges. During the quarter we purchased a $75 million LIBOR interest rate cap at 1.5% for two years that only cost $57,000. As I said before, we believe using interest rate caps is the most efficient way to hedge against increasing rates. With this new cap, 88% of our debt was fixed or hedged.

截至季末，我們未償還總負債為 4.72 億美元，其中在 1.5 億美元循環授信額度下的未償還金額為 1.01 億美元。我們持續評估對利率上升的曝險，並尋找適當時點進行避險。本季我們以僅 5.7 萬美元的成本，購買一筆 7,500 萬美元、上限利率 1.5%、期限兩年的 LIBOR 利率上限（interest rate cap）。如我先前所述，我們認為使用利率上限是對抗利率上升最有效率的避險方式。隨著這項新的利率上限，我們 88% 的債務已為固定利率或已避險。

We're also working on refinancing the 2016 and 2017 debt maturities. We're expecting a commitment any day now to refinance 4525 Main Street and Encore Apartments. We're also out to market to refinance the Town Center 2016 maturities with expected financing proceeds greater than the maturity amounts.

我們也正著手為 2016 與 2017 年到期的債務進行再融資。我們預期隨時會收到對 4525 Main Street 與 Encore Apartments 的再融資承諾。我們也已進入市場，為 Town Center 於 2016 年到期的債務進行再融資，預期融資所得將高於到期金額。

At the start of the year, we have announced two new pipeline projects, the first being One City Center, a mixed-use high-rise in Durham. Upon completion, we'll own the retail and office components, which represents 37% percent of the joint venture. Since we are the minority owners of this project, it will not be consolidated on our balance sheet. Our cost for this project is $34 million, which is funded through the joint venture construction loan, and our equity requirement of $9 billion funded through our credit facility. But the impact on our balance sheet is minimal until completion in two-plus years from now.

在年初，我們宣布兩個新的管線專案，第一個是 One City Center，位於 Durham 的複合用途高層建築。完工後，我們將持有其中的零售與辦公部分，代表該合資案 37% 的權益。由於我們是此專案的少數股權持有人，該專案不會併入我們的資產負債表。我們在此專案的成本為 3,400 萬美元，透過合資建築貸款提供資金；而我們所需投入的股權為 90 億美元，並由我們的授信額度提供資金。但在未來兩年多後完工之前，對我們資產負債表的影響很小。

The other recent announcement is the Annapolis Junction project. This is structured similar to the Point Street Apartments project, with our investment funded through a mezzanine loan. The 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 made a return on our investment, earned a construction fee during development, and have the option to purchase a controlling interest in the property upon completion. Our current investment in Annapolis Junction is a form of a $42 million mezzanine loan which bears interest at 10%.

另一項近期公告是 Annapolis Junction 專案。其架構與 Point Street Apartments 專案類似，我們的投資透過夾層貸款（mezzanine loan）提供資金。該專案不併表，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。此類規模與期間的專案，通常需要超過兩年的債務與股權投入，且在此期間資本沒有回報。透過夾層債務架構，我們已對投資取得報酬、在開發期間賺取施工費，並可在完工後選擇購買該物業的控股權。我們目前在 Annapolis Junction 的投資為一筆 4,200 萬美元的夾層貸款，利率為 10%。

These are the two pending projects included in the guidance issued last quarter that we anticipated being finalized in this timeframe. We now have three large pipeline projects with 24-plus-month construction schedules that are neither consolidated nor stress our balance sheet during development. This structure provides significant flexibility to manage the balance sheet in preparation of acquisition so existing properties can use the proceeds in a 1031 exchange or sell the asset and monetize the wholesale-to-retail spread.

這兩個待定專案已納入我們上季發布的財測指引中，且我們原先預期會在此期間完成定案。目前我們有三個大型管線專案，其施工期均超過 24 個月，且皆不併表，也不會在開發期間對我們的資產負債表造成壓力。此一架構提供顯著彈性，以便我們在準備收購時管理資產負債表，使既有物業可將出售所得用於 1031 交換，或出售資產並將批發到零售的價差（wholesale-to-retail spread）變現。

Let me walk you through our full year of 2016 guidance that we updated this morning. We expect normalized 2016 FFO in the range of $0.94 to $0.98 per share. This updated 2016 guidance is predicated on the following assumptions -- GAAP NOI in the $64.5 million to $65.2 million range; third-party construction company gross profit in the $4.5 million to $5 million range; general and administrative expenses in the $9.1 million to $9.4 million range; interest income from our mezzanine financing program in a $3.2 million to $3.5 million range; interest expense in the $16 million to $16.5 million range; the sale of the three non-core retail properties by June 30 totaling $28.3 million; and the fourth property during the third quarter for $3.8 million; and 48.9 million weighted average shares and OP units outstanding.

讓我帶各位逐項說明我們今早更新的2016全年財測指引。我們預期2016年經常性（normalized）FFO將落在每股0.94美元至0.98美元的區間。這份更新後的2016年指引係基於以下假設——GAAP NOI介於6,450萬美元至6,520萬美元；第三方營造公司毛利介於450萬美元至500萬美元；一般及行政費用介於910萬美元至940萬美元；來自夾層融資（mezzanine financing）計畫的利息收入介於320萬美元至350萬美元；利息費用介於1,600萬美元至1,650萬美元；於6月30日前出售三項非核心零售資產，合計2,830萬美元；並於第三季出售第四項資產，價格為380萬美元；以及加權平均流通在外股數與OP單位合計4,890萬。

This guidance excludes any impact from future acquisitions, asset sales other than the four non-core retail assets, and other capital markets activity with the exception of continuing the ATM program.

本指引不包含未來收購、除四項非核心零售資產以外的資產出售，以及其他資本市場活動的任何影響，惟持續進行ATM計畫者除外。

I'd like to make a few comments about this updated guidance. The Southgate Square acquisition is accretive. It's one of the main drivers in raising the 2016 guidance. With the amount of OP units issued as part of this transaction, it's properly levered and does not stress the balance sheet. As our Company continues to grow, we increased estimated G&A expenses for the year due to additional employee costs. However, our G&A ratio has continued to decrease.

我想就這份更新後的指引補充幾點。Southgate Square的收購具增益性（accretive），是我們上調2016年指引的主要驅動因素之一。由於本交易發行了相當數量的OP單位，因此槓桿水準適當，並不會對資產負債表造成壓力。隨著公司持續成長，我們因新增員工成本而上調了全年G&A費用估計；不過，我們的G&A比率仍持續下降。

The updated average shares outstanding takes into account the OP units issued in the Southgate Square transaction as well as increased use of the ATM program during the year, as I mentioned earlier.

更新後的平均流通在外股數已反映Southgate Square交易中發行的OP單位，以及如我先前提到的，今年ATM計畫使用量的增加。

Before we turn to Q&A, I'd like to make a comment about next quarter. We do not expect the second quarter normalized FFO to continue at the same run rate due to the natural fluctuations in the construction company earnings.

在進入Q&A之前，我想先談一下下一季。我們不預期第二季的經常性FFO會以相同的運行速度（run rate）延續，因為營造公司的獲利本來就會自然波動。

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

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

Thank you. (Operator Instructions.) Dick Schiller, Robert W. Baird.

謝謝。（接線員指示。）Dick Schiller，Robert W. Baird。

You guys talked about the Johns Hopkins Village development, and I noticed from the supplement that the stabilization date was pushed from Q3 2017, or from Q3 2016 to Q3 2017. What was the reason for this extension? With all the preleasing that you mentioned on the call, that seemed odd to me.

你們談到Johns Hopkins Village的開發案，我從補充資料注意到穩定期（stabilization）日期從2016年第三季延後到2017年第三季。延長的原因是什麼？以你們在電話會議中提到的預租（preleasing）情況來看，這讓我覺得有點奇怪。

Thanks, Dick. We're trying to be cautious there with what we're reporting. The building is close to delivery. Preleasing has been going great. But as you know with student housing, there's going to be a big crunch right towards the end of August. We're feeling that it may well not stabilize by that time. And when it doesn't stabilize by August, then your next window isn't until January. So we wanted to be a bit conservative with our forecast there.

謝謝你，Dick。我們在對外揭露時希望更審慎。大樓已接近交付，預租進展非常好。但如你所知，學生住宅在8月底前後會出現很大的集中入住壓力。我們認為到那個時間點可能還無法達到穩定。如果8月未能穩定，那下一個窗口要等到1月。因此我們在預測上希望保守一些。

Okay, sure, that makes sense. And then with the properties that are under valuation to be sold at this point, are those mostly from the recent retail portfolio acquisition, or are those some core properties that were previously included in a portfolio?

好的，當然，這很合理。那麼，就目前正在估值、準備出售的資產而言，這些主要來自近期收購的零售投資組合，還是一些先前已納入投資組合的核心資產？

Yes, what we referred to earlier was the one -- we had always intended to resale five of those non-core assets out of that acquisition. We now have three of them under contract and one under LOI. The fifth one is an interesting proposition that we're still looking at. It may well be something that we end up keeping, but we're not there yet.

是的，我們先前提到的是——我們原本就打算把那次收購中的五項非核心資產轉售出去。目前其中三項已簽約，一項已簽署意向書（LOI）。第五項是一個有趣的標的，我們仍在評估；最後可能會選擇保留，但目前還沒定案。

Got it. Okay, great, thanks. And I think Dave is on. He might have a couple of follow-ups.

了解。好的，很棒，謝謝。我想Dave也在線上，他可能還有幾個追問。

Yes, good morning, guys. I did want to touch on something. Mike, you had talked about maybe a cash-out refi on the bulk of the Town Center. Can you talk about the types of proceeds, maybe a range that you're expecting out of that? And do you look at that as an opportunity to pay down other debt in the portfolio, or is that acquisition capital that you're looking to deploy?

是的，各位早安。我確實想追問一點。Mike，你提到可能會對Town Center的大部分做一筆提現再融資（cash-out refi）。你能談談你們預期可取得的資金規模，例如一個區間嗎？你們會把它視為償還投資組合內其他債務的機會，還是打算作為收購資金來部署？

Yes, so we have the three block accounts that are coming up for renewal in September, have one term sheet in hand at $34 million -- $35 million -- which is around $5 million to $6 million greater than the maturity. Expecting some more quotes in here over the next couple of weeks. Our thoughts are if we can get -- to take the extra $5 million or so and take that and have that capital to put towards other things, like you said, towards acquisitions or development.

好的。我們有三個分戶帳（block accounts）將在9月到期續約，目前手上已有一份條款書（term sheet），金額為3,400萬美元——3,500萬美元左右——比到期金額高出約500萬至600萬美元。接下來幾週我們預期還會收到更多報價。我們的想法是，如果能多拿到約500萬美元，就把這筆額外資金用於其他用途，如你所說，用於收購或開發。

Okay. And as you look at your line, I think you said there's about $100 million outstanding out of the $150 million availability. You've got the asset sale proceeds coming in. Are you looking to do some kind of term debt on that or maybe increase the line to pursue more acquisitions? Talk a little bit about the financing strategy with respect to putting more capital to work.

好的。再看你們的額度，我記得你說在1.5億美元可用額度中，已動用約1億美元。你們也會收到資產出售款項。你們是否考慮把這部分做成某種期限性債務（term debt），或是提高額度以追求更多收購？請談談在投入更多資本運用方面的融資策略。

Yes, so we are going to take the proceeds of $32 million or so from the sale of those assets and pay down the credit facility. As far as terming it out, we would have done that this past quarter. We increased the term loan by $50 million. We went from $50 million to $100 million on the term loan and used those proceeds to pay down the line. One reason we did that was because as part of the big acquisition, we used the line to fund the acquisition that was over and above the 1031 exchange money. And part of that, we ended up purchasing more assets than we really wanted, so hence the sale of those five assets which are under contract to pay down the line.

好的。我們會把出售那些資產所得約3,200萬美元用來償還循環信用額度（credit facility）。至於轉為期限性融資（terming it out），我們其實在上一季就做了：我們把定期貸款增加了5,000萬美元，從5,000萬提高到1億美元，並用所得資金償還額度。這麼做的原因之一是，在那筆大型收購中，我們用額度來支付超出1031交換資金的部分。而其中一部分我們最後買進的資產比原本想要的更多，因此才會出售那五項已簽約的資產，用來償還額度。

Great. Last one for me. Maybe, Lou, talk about the environment for new development projects. Sounds like you're seeing some good opportunities out there, but really interested in how the overall pipeline fits in with the risk profile and if you're comfortable expanding that pipeline further at this point.

很好。我最後一題。Lou，能否談談新開發案的環境？聽起來你們看到一些不錯的機會，但我更關心整體案源（pipeline）如何與風險輪廓相匹配，以及在目前這個時間點，你們是否仍然願意進一步擴大案源。

Thanks, Dave. That's a great question, and it probably would take more time than we have here. We're continuing to see an abundance of opportunity. And again, what everybody should recognize on the phone, this is much more of a rifle approach than a shotgun. Now, as you guys know, we don't -- we look at not only markets, but submarkets and specific areas within those submarkets for the opportunities that we're going to invest in. We're seeing those types of opportunities across the board in all of our markets, and so we're basically cherry-picking what we believe to be the best.

謝謝你，Dave。這是個很好的問題，但可能需要比我們現在更多的時間。我們仍持續看到大量機會。也再次提醒各位，這更像是「步槍式」而非「霰彈槍式」的策略。各位知道，我們不只看市場，也看次級市場（submarkets）以及次級市場內的特定區域，來尋找我們要投資的機會。我們在所有市場都看到這類機會，因此基本上是在挑選我們認為最好的標的。

We don't want to expand. We don't want to get out over our skis. We've told people that this run rate is $150 million to $200 million every 18 to 24 months. We're skewing a little bit to the higher end of that range, but it must be said, this isn't a commodity business. The reason we're able to make these spreads that you've seen us monetize again and again is because they take a tremendous amount of effort and a tremendous amount of executive time in order to bring to fruition. It's not something that scales up easily, nor are we that interested in doing it. We've been doing it the same way for over three decades, and that's going to continue to be the process.

我們不想擴張得太快，不想操之過急。我們一直告訴大家，我們的節奏是每18到24個月投入1.5億至2億美元。我們目前略偏向區間的高端，但必須說，這不是一門大宗商品生意。我們之所以能一次又一次實現你們看到的利差（spreads）變現，是因為這需要投入大量努力與大量高階管理時間才能落地。這不是容易擴張規模的事情，我們也不太有興趣那樣做。我們用同樣的方法做了三十多年，未來也會持續如此。

Great. Thanks, guys.

很好。謝謝各位。

Rob Stevenson, Janney Montgomery Scott.

Rob Stevenson，Janney Montgomery Scott。

Lou, when you look at your office portfolio today, Oyster Point's essentially under sale. Is it other than maybe the Chesapeake asset, is there anything else that you're considering non-core going forward in the office portfolio as a source of funds down the road here?

Lou，當你看你們目前的辦公室投資組合時，Oyster Point基本上正在出售中。除了可能的Chesapeake資產之外，未來在辦公室投資組合中，還有沒有其他你們會考慮視為非核心、作為日後資金來源的資產？

We still have a couple of single-tenant build-to-suits. They're somewhat small. There's the State Office Building that we're not really viewing as core, but we're also not anxious to sell. But so we're fairly limited in what else that we would recycle on that end of the portfolio.

我們仍有幾個單一承租戶的量身訂做案（single-tenant build-to-suits），規模都偏小。還有一棟州政府辦公大樓（State Office Building），我們不太把它視為核心資產，但也不急著出售。因此，在辦公室投資組合這一端，我們能再做資產汰換（recycle）的空間其實相當有限。

Rob, I'd just add onto that. So those two single-tenant office buildings went into service a little over a year ago at this point in time. And under the REIT rules, once we hit the two-year mark on that, we can sell those and not be a sale of inventory under the tax rules, and we could take those proceeds at that point in time and keep them in house and not have to worry about a 1031. So that's another reason that I think we'll be a little patient and make sure we get beyond the two-year point.

Rob，我再補充一下。那兩棟單一承租戶的辦公大樓在目前這個時間點大約是一年多前開始投入使用。依照 REIT 規則，一旦我們達到兩年的門檻，我們就可以出售它們，而在稅務規則下不會被視為出售存貨；屆時我們也可以把出售所得留在公司內部，不必擔心 1031 交換。所以這也是我認為我們會稍微有耐心、確保跨過兩年門檻的另一個原因。

Okay. And then as you look at the retail portfolio, so the retail has gotten to be a bigger percentage of the NOI. Is there stuff in there, other than potentially the remaining Texas asset, that you guys may look to cull over time as you continue to add more retail? From an acquisition standpoint, is there stuff, whatever you classify in the bottom quartile of that portfolio today, as for recycling or, given the size of retail and where you want it to be, is it you're not really interested in selling retail at this point?

好的。接著看零售投資組合，零售在 NOI 中的占比已經變得更高。除了可能剩下的德州資產之外，裡面是否還有一些資產，隨著你們持續增加更多零售而可能會在時間推移中考慮汰換？從收購角度來看，是否有一些你們目前會歸類在該投資組合底部四分位的資產，適合用來做資產循環（recycling）；或者考量到零售的規模以及你們希望達到的配置，你們目前其實不太有興趣出售零售資產？

It's a really good question, Rob. It gives me an opportunity to, again, reiterate our philosophy. We don't fall in love with real estate. All these assets have a peak value, and we're constantly looking at the portfolio to see if we're at peak value and we're going to be looking at slower growth going forward. So I would tell you that there are opportunities for recycling in there. There's nothing imminent just now, but it's something we're very mindful of and not afraid to pull the trigger.

這是個非常好的問題，Rob。也讓我有機會再次重申我們的理念。我們不會愛上不動產。所有資產都有其峰值價值，我們會持續檢視投資組合，看看是否已接近峰值、以及未來是否將面臨較慢的成長。所以我會告訴你，裡面確實有資產循環的機會。目前沒有迫在眉睫的事項，但我們非常留意，也不怕在適當時機扣下扳機。

Okay, and then on the Southgate asset, you mentioned that Staples is a tenant in there. Have they already either leased or been downsized into their smaller footprint, or is that a risk for you guys going forward?

好的，那關於 Southgate 資產，你提到 Staples 是其中一個承租戶。他們是否已經完成續租，或是已經縮減到較小的使用面積？還是說這會是你們未來的風險？

Thanks again, Rob. I'm going to turn that over to Eric Smith, our Chief Investment Officer, who headed up that acquisition.

再次謝謝你，Rob。我把這題交給我們的投資長 Eric Smith，他主導了那筆收購。

Yes, I appreciate the question. So that lease is a 28,000-square-foot store that comes up in 2017. Our reconnaissance, our due diligence process, is that they're happy at the center. We have not heard the specific request yet that they'll be looking to shave square footage off of that lease. We obviously are familiar with the general trend that you mentioned, so part of that diligence was if that tenant or, quite frankly, a couple of the other larger box tenants there, show up and want to have that 3,000-, 5,000-, or 7,000-square-foot, et cetera, discussion to shave off some square footage, we're very comfortable in the ability to re-lease that space, and arguably, at a rental rate pickup in the process.

是的，謝謝你的提問。那份租約是一間 28,000 平方英尺的店面，將在 2017 年到期。我們的偵查與盡職調查流程顯示，他們對該購物中心很滿意。我們目前尚未聽到他們提出要縮減該租約面積的具體要求。我們當然也了解你提到的整體趨勢，所以盡調的一部分就是：如果該承租戶，或坦白說那裡另外幾個較大的大盒子（big box）承租戶，出現並希望就 3,000、5,000 或 7,000 平方英尺等議題進行討論、以便削減一些面積，我們對於重新出租該空間的能力非常有信心，而且可以說在這個過程中租金還有機會上調。

Okay. And then just lastly, on the Harper Hill Commons asset, where you're 79% occupied, is that all small space, or is there some big chunks in there to lease up? And how is re-tenanting going in that space these days?

好的。最後一題，關於 Harper Hill Commons 資產，你們目前入住率是 79%，那裡都是小坪數空間嗎？還是有一些較大的區塊需要出租？而且目前那邊的重新招租（re-tenanting）情況如何？

Again, this is Eric. It's mostly small space, or it could easily be partitioned into small space. And the leasing, I would say, is reasonably solid. We think we have some things in the pipeline that we'll be able to talk about in the near future. So we're pleased with the activity, despite the fact you haven't seen that number move significantly quite yet.

我再回答，這是 Eric。主要是小坪數空間，或者也很容易切分成小坪數。至於出租情況，我會說相當穩健。我們認為有一些案子正在管線中，近期應該就能對外說明。所以儘管你還沒看到那個數字明顯上升，我們對目前的活動量感到滿意。

Okay, thanks, guy. Appreciate it.

好的，謝謝各位。感謝。

Let me add something else to that, Rob. Again, something else we look at very closely. When we purchase an asset, particularly on these retail centers, obviously, we're looking at credit and we're looking at location and all of the things that you typically would look at. But something that's very near and dear to our heart is sales per square foot in the existing anchors. When we see real high volume in those anchors, then we feel real good about recapturing space and being able to re-lease it. And when we don't see that, we don't pull the trigger and buy the asset. So I think, if you look behind the numbers and much more granularly into what the actual tenants are doing in the space that we've acquired, you'd be pretty impressed with the kind of sales volume that they're doing.

Rob，我再補充一點。這也是我們非常密切關注的事情。當我們購買資產時，特別是這些零售中心，顯然我們會看信用、看地點，以及你通常會看的所有因素。但有一點對我們而言非常重要，就是現有主力店（anchors）的每平方英尺銷售額。當我們看到主力店的銷售量很高，我們就會對收回空間並重新出租的能力很有信心；如果看不到這點，我們就不會扣下扳機去買該資產。所以我想，如果你不只看數字，而是更細緻地去看我們所收購空間裡實際承租戶的營運表現，你會對他們的銷售量水準印象深刻。

Is there any out-parcel carve-outs potentially at Southgate, given the size of that center?

考量到 Southgate 那個中心的規模，是否可能有任何外圍地塊（out-parcel）的切割出售（carve-outs）？

Eric?

Eric？

There is. I don't know if we've spoken about it before, but as Lou mentioned, we acquired this asset from the same seller pool who had transacted Dimmock Square with us. And at the time that we looked at Dimmock Square a couple of years back, we had looked at this Southgate asset as well. At the time, it was anchored by a Kmart. We were not comfortable with the Kmart, and so we obviously didn't transact at that time. Since then, that Kmart has been redeveloped, and two-thirds of that pad square footage is now the new Burlington lease that was mentioned, the 15-year Burlington lease.

有的。我不確定我們之前是否提過，但如 Lou 所說，我們是從同一組賣方那裡收購這項資產；那組賣方也曾與我們交易過 Dimmock Square。幾年前我們看 Dimmock Square 時，也同時看過這個 Southgate 資產。當時它的主力店是 Kmart。我們對 Kmart 不放心，所以當時顯然沒有成交。此後，那家 Kmart 已經重新開發，其中三分之二的獨立地塊（pad）面積現在是前面提到的新 Burlington 租約，也就是 15 年期的 Burlington 租約。

There is the residual square footage of that pad that's available for redevelopment, so that is one opportunity that exists. The second opportunity is there is some parking lot area out upfront. It is not a near-term opportunity because it is captured in some sight line causes through some of the various leases. But longer term, as those leases come up and expire or are renewed and we have the opportunity to have those discussions about those sight lines, we think there might be an out-parcel opportunity there as well, longer term.

那個獨立地塊仍有剩餘面積可供再開發，所以這是一個現有的機會。第二個機會是，前方有一部分停車場區域。這不是短期機會，因為在一些不同租約中，視線走廊（sight line）條款把它限制住了。但長期來看，隨著那些租約到期、終止或續約，且我們有機會就視線走廊進行討論時，我們認為那裡也可能會有外圍地塊（out-parcel）的機會，屬於較長期的。

Okay, thanks, guys.

好的，謝謝各位。

John Guinee, Stifel.

John Guinee，Stifel。

Great. Yes, I've got some questions on page 16. But first, hey, Michael, could you re-explain the profit on the police station, exactly how much that was and what lines that ran through?

很好。是的，我在第 16 頁有一些問題。不過先問一下，Michael，你能再解釋一下警察局那筆的利潤嗎？確切是多少，以及是走哪些科目列示的？

This is -- we had contracted, or, say, did a purchase-and-sale agreement with the City of Newport News to develop the police precinct at the Brooks Crossing project. That was structured as a sale, and negotiating the sales price with the City of Newport News, at least they knew our cost upfront as we went into that and basically set that up as our gain on that sale would be equal to our construction fee, which was $430,000. On our income statement, that's included on the gains on sales of real estate, so it's in there on the income statement. And in our FFO calculation, when we go from net income to FFO, when we back out the gains on sale, we're only backing out the gain from the Richmond Tower in there, and thus leaving the $430,000 in FFO.

這是——我們與 Newport News 市簽訂了合約，或者說，簽了買賣協議，在 Brooks Crossing 專案開發警察分局。該交易結構是以出售方式進行；在與 Newport News 市協商售價時，至少他們在一開始就知道我們的成本，而我們基本上把它設定為：該筆出售的處分利益等同於我們的施工費（construction fee），也就是 430,000 美元。在損益表上，這筆列在不動產出售利益（gains on sales of real estate）裡，所以在損益表中會看到。至於我們的 FFO 計算，當我們從淨利調整到 FFO、把出售利益加回（back out the gains on sale）時，我們只把其中 Richmond Tower 的出售利益加回，因此 430,000 美元會保留在 FFO 裡。

Got you, okay, all right. And then focusing on page 16, Lou, who's the developer on Johns Hopkins Village, Point Street Apartments, and Annapolis Junction?

了解，好的，好。接著聚焦第 16 頁，Lou，Johns Hopkins Village、Point Street Apartments，以及 Annapolis Junction 的開發商分別是誰？

On Johns Hopkins Village, it's us. On Point Street Apartments, it's Beatty Development Corporation.

Johns Hopkins Village 是我們自己。Point Street Apartments 是 Beatty Development Corporation。

Somerset Construction, or an SB affiliated with Somerset Construction, on Annapolis Junction.

Annapolis Junction 是 Somerset Construction，或是 Somerset Construction 的關係企業（SB affiliated with Somerset Construction）。

Lou Haddad: (inaudible).

Lou Haddad：（聽不清楚）。

Got it, okay. And what you've got, essentially on this page, your total estimated cost plus purchase option is about $347 million against a total enterprise value of roughly $1 billion. So basically, you're going to be a serial equity issuer as these come onstream. Is that a fair way to look at it?

了解，好的。那在這一頁上，你們的總預估成本加上購買選擇權大約是 3.47 億美元，對比總企業價值（total enterprise value）約 10 億美元。所以基本上，隨著這些專案陸續上線，你們會成為持續發行股權的公司。這樣看合理嗎？

Not really, John. We're, again, this is the benefit of being an integrated real estate company. As Mike alluded to, we may well monetize those upon completion. We can also use them for 1031 exchanges with existing property. I would think it highly unlikely that we would simply keep all three and raise equity to properly lever them. I don't believe that's in the cards. Of course, you never know, but that's not our thought at this time.

不太是，John。我們——再次強調，這就是作為一體化不動產公司的好處。正如 Mike 提到的，我們很可能在完工後將其變現。我們也可以把它們用於與既有資產進行 1031 交換。我認為我們不太可能把三個都全部持有，然後再發行股權來把槓桿調到合適水準。我不認為那會發生。當然，你永遠無法完全確定，但目前我們不是這樣想的。

Okay. And then on Main Street, essentially special occupancy a couple of years ago, stabilizing in a year. But you've got about 100,000 square feet to lease. Are there any tenants out there in the marketplace?

好的。那在 Main Street 方面，基本上幾年前有特殊入住（special occupancy），一年內會穩定化。但你們還有大約 100,000 平方英尺要出租。市場上有任何承租戶嗎？

John, we have actively got a lease working for 14,000 or 15,000 feet right now. It's been slower than what I would have liked to have seen. We're happy to have some capacity here at Town Center. For many years we had to say no to the smallest of tenants. So I feel comfortable about having some space to lease going forward. But I would tell you that my expectation would have been that we'd be further along right now. The velocity of tenants just hasn't been there in those -- as far as the A-payers in that upper 20% rental rate. But again, I feel comfortable that they'll be there. This remains the best address in the region.

John，我們目前正積極推進一筆約14,000或15,000平方英尺的租賃案。進度比我原本希望看到的要慢。我們很高興在Town Center這裡還有一些可用面積。過去很多年，我們不得不對最小型的租戶說不。所以我對未來仍有一些空間可供出租感到安心。但我得告訴你，我原本預期我們現在應該會更往前一些。租戶的進駐速度就是沒有起來——尤其是那些屬於A級付款方、租金水準在前20%的租戶。不過，我仍然有信心他們會出現。這裡仍然是本區域最好的地段。

Got it. And then on One City Center in Durham, my understanding is that's an office-retail plus a condominium?

了解。那麼關於達勒姆（Durham）的One City Center，我的理解是那是一個辦公-零售加上共管公寓的案子？

Yes. As well as multifamily for rental.

是的。另外還有出租型多戶住宅。

Okay, so you've got condo and for rent?

好，所以你們有共管公寓，也有出租？

Not us, but yes.

不是我們，但沒錯。

So what would -- you're in there. You're in the entire project as a 37% joint venture, but for the office and retail 100%, or how exactly does that work?

那你們在裡面的權益是怎麼算——你們以37%的合資比例參與整個專案，但辦公和零售是100%持有，還是實際上是怎麼運作的？

Yes, let me make sure we make this clear. We are not a participant in either the residential for rent or the residential to own. Our joint venture partner will own both of those segments, which will ultimately be 63% of the venture. Our 37% is a 100% stake in the office and retail. And quite frankly, we believe that our partner's going to do real well with his residential. We could not get comfortable with the underwriting in order for us to participate there. And that, again, exercising some discipline, we insisted that our stake be limited to what we felt comfortable with.

是的，我先把這點講清楚。我們不參與住宅出租或住宅出售（自住）這兩個部分。我們的合資夥伴會持有這兩個區塊，最終將占合資企業的63%。我們的37%則是對辦公與零售部分的100%持股。坦白說，我們相信夥伴在住宅部分會做得很好；但我們無法在承作評估（underwriting）上達到足夠的把握，因此不參與那一塊。也就是說，我們再次秉持紀律，堅持把我們的持股限制在我們覺得有把握的範圍內。

So how are you able to do that on an off-balance-sheet basis if you ultimately are owning 100% of two of the four components?

那如果你們最終在四個組成部分中的兩個擁有100%權益，怎麼還能以表外（off-balance-sheet）的方式處理？

John, the way the joint venture is structured, so from a debt standpoint, what we have here is one loan with two notes that the joint venture took out, with us guaranteeing the office and retail and our partner guaranteeing the residential piece. The big area from a GAAP standpoint, or the reason that it stays that way is because the notes are cross-collateralized. So there is a cross-collateralization there. Certainly, we've done everything in the operating agreement to protect ourselves if anything happens with our partners during this standpoint.

John，合資架構是這樣：從負債角度來看，合資企業借了一筆貸款，但分成兩張本票（notes）；我們擔保辦公與零售部分，我們的夥伴擔保住宅部分。從GAAP角度最大的關鍵、也是能維持這種處理方式的原因，是因為這兩張本票是交叉擔保（cross-collateralized）的，所以存在交叉擔保安排。當然，我們也在營運協議中做了所有必要安排，以在這段期間若夥伴發生任何狀況時保護我們自己。

The other thing is we are -- we do not have majority vote in this joint venture. We have some blocking rights, but we do not control the venture.

另外一點是，我們在這個合資企業中——並沒有多數表決權。我們有一些否決權（blocking rights），但我們不控制這個合資企業。

So it's two individual construction loans, each guaranteed but cross-collateralized, which means essentially you're guaranteeing everything?

所以是兩筆各自的建築融資貸款，各自有擔保但又交叉擔保，這基本上表示你們等於擔保了全部？

Just through construction.

僅限於施工期間。

Well, yes, you're guaranteeing it all, right?

嗯，是的，你們擔保了全部，對吧？

Correct. But I'd certainly argue, John, that we spent a long time on this thing and making sure that within the operating agreement, we have the protection that we need on this project.

沒錯。但我也要強調，John，我們在這件事上花了很長時間，確保在營運協議中，我們對這個專案具備所需的保護。

But help us just to understand this. You are guaranteeing both loans because they're cross-collateralized, so you are effectively guaranteeing the loan on the condominium aspect of this?

但請幫我們理解一下。你們因為交叉擔保而擔保兩筆貸款，所以你們實際上也在擔保這個案子裡共管公寓那一部分的貸款？

It's totally more complicated. Maybe we could talk about this offline, but I don't want to get into the way our partner structured his loan. But there's other aspects with the bank loan and the structuring of the loan that we felt comfortable with. And I'll gladly talk with you offline so we don't have to get into publicly talking about someone else's loan. As I said, we can (inaudible).

這其實複雜得多。也許我們可以私下再談，但我不想深入討論我們夥伴如何安排他的貸款結構。不過，銀行貸款與貸款架構還有其他面向，讓我們覺得可以接受。我很樂意私下跟你說，這樣我們就不必在公開場合談論別人的貸款。如我所說，我們可以（聽不清）。

A very good friend of mine bought the top floor condo in that building, so thank you.

我有一位很好的朋友買了那棟大樓的頂樓共管公寓，所以謝謝。

We'll be glad to go through that with you, John, offline. We got very comfortable with the way it was structured on his end.

John，我們很樂意私下跟你把這部分走一遍。我們對他那端的結構安排感到非常放心。

Bill Crow, Raymond James.

Bill Crow，Raymond James。

Bigger-picture question and then a smaller-picture question. Bigger picture is with occupancy down in all three segments, and some of that due to basically just portfolio recycling, et cetera, but certainly there's got to be some impact from the broader economy. I guess my question is, is it feeling a little toppy, a little like we're nearing an end of the cycle? Maybe it persists for a while, but have we seen the best of times now?

先一個大方向問題，再一個小方向問題。大方向是：三個分部的入住率都在下降，其中一部分原因基本上是資產組合汰換（portfolio recycling）等等，但更廣泛的經濟環境肯定也有影響。我想問的是：現在是不是感覺有點到頂了、有點像接近景氣循環尾聲？也許還會持續一段時間，但我們是不是已經見到最好的時候了？

Again, that's a fairly long discussion, Bill. I appreciate the question. First, let me say that 100% of the dip in occupancy was due to capital recycling. Essentially, when you sell 100% full properties and acquire some that are in the 90s, that's what happens. And so we have not seen any decrease in occupancy in the core portfolio.

Bill，這又是一個相當長的討論，我很感謝你的問題。首先我要說，入住率下滑的100%都是因為資本循環配置（capital recycling）。本質上，當你賣掉100%滿租的資產、再買進一些入住率在90%多的資產，就會發生這種情況。因此，我們在核心資產組合並沒有看到入住率下降。

However, our take is a little bit different. We believe that we've been bumping along the bottom for quite a while, and I'm not sure that there's an end in sight. What we're not seeing and haven't seen for quite some time is the general list of our tenants expanding. And I think as long as the economy continues to do what it's doing, we're not going to see a whole lot of internal growth from existing tenants. I hope that that happens at some point. Maybe this election will yield some results for us all. But no, we're not seeing toppiness. We're seeing status quo. And quite frankly, we're getting a little tired of it.

不過，我們的看法有點不同。我們認為我們已經在谷底附近徘徊很久了，而且我不確定何時看得到盡頭。我們沒有看到、而且已經很久沒看到的是：我們租戶的整體名單在擴大。我想只要經濟持續維持目前的狀態，我們就不會從既有租戶那裡看到太多內生成長。我希望某個時點會發生改變。也許這次選舉會為大家帶來一些結果。但不，我們沒有看到到頂；我們看到的是維持現狀。坦白說，我們也有點厭倦了。

I hear you. The second question is, given the pipeline and the development in the construction company, are you comfortable at this point giving us an idea of where you think the fee income could be in 2017?

了解。第二個問題是，考量你們的案源管線以及建築公司在建開發的情況，你們現在是否願意給我們一個你們認為2017年費用收入可能落在哪裡的概念？

We haven't run those numbers yet. I'd like to think for the third or fourth consecutive year, it's going to skew towards the higher end of the range. There's certainly going to be some significant backlog. But not ready to comment on that.

我們還沒跑那些數字。我希望連續第三或第四年，它會偏向區間的高端。確實會有一些顯著的在手訂單（backlog）。但現在還不準備評論。

Okay, thanks, guys. That's it.

好，謝謝各位。就這些。

Laura Engel, Stonegate Capital.

Laura Engel，Stonegate Capital。

Well, most of my questions have now been answered, but I wanted to see if there was, I guess as far as the information you gave us on the project with the Residence at Annapolis Junction, is there a little more specifics on where you are exactly with that project as far as timing and moving on to next phases of that project?

嗯，我的大部分問題現在都已經被回答了，但我想看看，關於你們提供給我們的Residence at Annapolis Junction這個專案資訊，能否再更具體一點：就時程而言，你們目前確切進度到哪裡，以及接下來要推進到下一階段的情況？

Sure. This is Eric. We've broken ground on the project. As you can see from the disclosure in the supplemental, 2/2/16 start, with initial occupancy at the beginning of 2018 and stabilization approximately a year later, and so we're comfortable with that timeline.

當然。這裡是Eric。我們已經在該專案動工。正如你在補充資料（supplemental）的揭露中看到的，2016/2/2開工，初始入住在2018年初，約一年後達到穩定（stabilization），所以我們對這個時程感到有把握。

Okay, and then I know you've gotten a lot of questions on industries and your thoughts. But is there anything that really -- what most concerns you about -- that coming year and changes in what you see with rates and occupancies, things you've already covered. But aside from that, I know you've given a lot of positive information. Anything that really concerns you going forward or that you all will really look for or avoid as you consider your capital recycling and what types of weights you're going to put in the portfolio going forward?

好，另外我知道你們被問了很多關於產業與你們看法的問題。但除了你們已經談到的利率與入住率等之外，還有沒有什麼——在接下來一年裡，什麼最讓你們擔心？你們提供了很多正面的資訊，但未來有沒有什麼真的讓你們擔憂的，或是在考量資本循環配置、以及未來投資組合權重配置時，你們會特別留意或避免的？

Laura, that's a lot of question.

Laura，這問題很多。

You're sleeping well at night. We're all good.

你們晚上睡得很好。我們都沒問題。

I wish I could say we're sleeping well at night. Like I said before, we're not entirely comfortable with what's going out there in the economy. It would be nice if there as a rising tide and all the boats were being lifted. That's certainly not the case. We're having to do a tremendous amount of due diligence, more than we've ever done before we decide to pull a trigger on a project. One, because as you know, the underlying economy isn't all that strong. Secondly, when you look at the multifamily sector, we believe it's very late in the cycle. And so we're getting a tremendous amount of those opportunities thrown at us. And for the vast majority, they're going to be thrown back. But it takes a lot more due diligence these days for us to decide when and if to deploy capital.

我希望我能說我們晚上睡得很好。就像我之前說的，我們對外部經濟狀況並不是完全放心。如果有一個水漲船高、所有船都被抬升的環境，那會很好，但顯然不是這樣。我們必須做大量的盡職調查，比以往任何時候在決定扣扳機、推進一個專案之前都更多。第一，因為如你所知，底層經濟並沒有那麼強。第二，當你看多戶住宅（multifamily）部門時，我們認為它已經處於循環的很後段。因此，我們會收到大量這類機會，而其中絕大多數我們都會退回去。但在當下，要決定何時以及是否投入資本，所需的盡職調查比以前多得多。

Unfortunately, I don't see that changing any time soon. I can't wait until we can get on the phone here and give it the all-clear, but we're not there yet.

不幸的是，我不認為這種情況短期內會改變。我迫不及待想有一天能在電話會議上宣布一切都安全無虞，但我們還沒到那一步。

Okay. Well, again, thanks for all the information, as always. And we will look forward to following the story.

好的。那麼，再次一如既往地感謝你提供所有資訊。我們也期待持續追蹤這個進展。

Craig Kucera, Wunderlich Securities.

Craig Kucera，Wunderlich Securities。

I may have missed this, but what was the pricing on the OP units issued for Southgate Square?

我可能漏聽了，但針對 Southgate Square 發行的 OP 單位，定價是多少？

Eric?

Eric？

Great question. So when we valued that asset, we, as you know, price of OP unit and cap rate are somewhat of a fungible conversation between the two. As we were valuing that asset, we put the value in the low 7% cap rate, 7.25%-ish. At the time that we were negotiating that deal, our shares were trading anywhere from, on the high side, just getting into the $11 handle, and on the low side, $10.40 or so. And so we priced those with an $11 handle, I think $11.10, which put, like I said, the cap rate, in our minds, in that lower end of the 7% cap range. But again, as you know, that math is somewhat fungible, depending on where you want to place the OP unit value at the time of the transaction and then associated cap rate.

問得很好。所以當我們對那項資產估值時，如你所知，OP 單位的價格與資本化率（cap rate）在某種程度上是可以互相調整、彼此對應的。當我們在估值那項資產時，我們把價值放在 7% 出頭的 cap rate，大約 7.25% 左右。當時在談這筆交易時，我們的股價交易區間大概是，高點剛到 11 美元出頭，低點大約 10.40 美元左右。因此我們用 11 美元出頭來定價，我想是 11.10 美元；如我所說，這讓我們心目中的 cap rate 落在 7% cap 區間的較低端。但同樣地，如你所知，這個數學關係在某種程度上是可調的，取決於你在交易時點想把 OP 單位價值放在哪裡，以及相對應的 cap rate。

Got it. Were there any nuances to this structure, where the seller deferred taking a dividend payment or anything like that? Or was it just straight OP units?

了解。這個架構有沒有任何細節，例如賣方延後領取股利之類的？還是就只是單純的 OP 單位？

No, it was just straight OP units. That nuance in a previous deal was obviously associated with that development opportunity; in this case, similar to the Dimmock Square transaction we did with the same group of folks, just last day OP unit.

沒有，就是單純的 OP 單位。先前那筆交易的那個細節，顯然是跟那個開發機會有關；這次則是類似我們與同一組人做的 Dimmock Square 交易，就是一般的 OP 單位。

Got it, okay. And going through the dispositions of the non-core retail properties, I know at the time of that acquisition, I think the overall portfolio was about a 7% cap. I think the core were at about a 6.5%. Are you hitting the -- so the assets, at least, that are under LOI -- are you hitting the cap rates that you thought you would, or has there been a move to the upside due to choppiness in the debt market?

了解，好。再談到出售非核心零售物業，我知道在收購當時，我想整體投資組合大約是 7% 的 cap。我記得核心資產大約在 6.5%。那麼——至少就已在 LOI（意向書）之下的資產而言——你們達到原先預期的 cap rate 了嗎？還是因為債務市場波動而使 cap rate 往上走？

We're actually really pleased with the way this has unfolded. Take you on a walk through a little bit of history over the last four or five months in our disclosures. So the initial disclosure was that we were going into this portfolio on a cash basis just south of 7% for the entire portfolio. And then followed up that disclosure, I think, on a conversation on our previous earnings call that after we disposed of the non-core asset, that would leave the residual core portfolio in the 6.5% cap rate range.

我們其實對目前的進展非常滿意。我帶你回顧一下過去四、五個月我們在揭露中的一些歷史。最初的揭露是：我們以現金基礎（cash basis）進入這個投資組合時，整體投資組合的 going-in cap rate 略低於 7%。接著我想在上一季財報電話會議的討論中也補充過：在我們處分非核心資產之後，剩餘的核心投資組合會落在 6.5% cap rate 的區間。

Through a combination of a number of positive things -- our asset manager team getting hold of the asset, scrubbing the various contracts with vendors and managing expenses, as our asset management team does very well, getting into leasing activity, both renewals and some smaller new leases, et cetera -- they were able to add some NOI to the ones we're selling and improve the sales prices relative to the acquisition price for the non-core ones under contract, which obviously helps to apply those increased proceeds against the price of the remaining core asset. You then combine those same asset management activities on increased NOI and leasing, et cetera, to the core.

透過多項正面因素的組合——我們的資產管理團隊接手資產、檢視並清理各項供應商合約與費用管理（這正是我們資產管理團隊很擅長的）、推進租賃活動，包括續租以及一些較小的新租約等等——他們得以為我們正在出售的資產增加一些 NOI，並且相較於收購價格，提高了那些已簽約出售之非核心資產的售價；這顯然有助於把增加的處分款項用來抵減剩餘核心資產的成本。然後你再把同樣的資產管理作為（提高 NOI、租賃等）套用到核心資產上。

All that ends up putting you at a going-in cap rate on the whole portfolio on a cash basis at the 7.2% range. And it leaves you with the core asset, after you dispose of the four we've talked about, in a 6.8% cap rate range, which on a GAAP basis is a little bit north of 7.2%. So we're really pleased that we've seen about 30 basis points of movement, whether you talk about the entire portfolio or you're talking about the residual cap rate on the core portfolio in the I-85 corridor.

綜合下來，整個投資組合以現金基礎計算的 going-in cap rate 大約在 7.2% 左右。而在處分我們提到的那四項資產之後，核心資產的 cap rate 會落在 6.8% 左右；若以 GAAP 基礎計算則略高於 7.2%。所以我們非常高興看到大約 30 個基點的變動，不論你談的是整體投資組合，或是談 I-85 走廊核心投資組合的剩餘 cap rate。

Got it. No, I appreciate the color. One last one here, just because we're getting towards an hour, I just want to talk about the mezzanine loan funding. The new loan at Annapolis Junction at 10% -- is that all current, or is any of that accrued?

了解。不，我很感謝這些補充資訊。最後一個問題，因為我們快到一小時了，我想談一下夾層貸款（mezzanine loan）的資金撥付。Annapolis Junction 那筆 10% 的新貸款——那部分都是當期支付（current）嗎？還是有任何是應計（accrued）的？

Yes, it's all current.

是的，全部都是當期的。

Got it. And how should we think about the funding of both that and Point Street? Will those capital outlays be put down in line with any other debt? Or how should we think about when those would be fully deployed?

了解。那我們應該如何看待那筆以及 Point Street 的資金撥付？這些資本支出會像其他債務一樣按進度投入嗎？或者我們應該如何理解它們何時會完全投入？

So certainly the deployment's going to, based upon the construction schedule and drives as we go along here, it will take probably most of the year until those funds are out.

當然，資金投入會依照施工進度來推進；隨著我們一路進行，可能要到今年大部分時間過去，這些資金才會全部撥出。

Got it. So as we look at our 2017, then you should have, call it $67 million outstanding, at least until you guys decide whether or not to exercise your option? Is that correct?

了解。那麼我們看 2017 年時，你們應該會有大約 6,700 萬美元的未償餘額，至少在你們決定是否行使選擇權之前？這樣理解對嗎？

Correct, yes.

對，沒錯。

Okay, thanks. That's all for me.

好的，謝謝。我這邊就到這裡。

One second. I'd like to make one point clear. There was a question earlier about OP units. Since our IPO, we've done a number of these transactions, and now with this latest one, we're closing in on $50 million worth of OP units that we've issued in acquiring properties. In each of those transactions, the units were priced higher than the then stock price. And in each of those transactions, the unit holder has made money. As you might expect, that has more and more people bringing properties to our door. We're going to continue to be selective about what we add to our portfolio, but that program is working exactly as we had hoped, and the opportunities are continuing to increase.

等一下。我想把一點說清楚。剛才有人問到 OP 單位。自我們 IPO 以來，我們做了多筆這類交易，而加上最近這一筆，我們在收購物業時所發行的 OP 單位金額已接近 5,000 萬美元。在每一筆交易中，單位的定價都高於當時的股價。而在每一筆交易中，單位持有人都賺到錢。如你所料，這讓越來越多人把物業帶到我們面前。我們會持續對納入投資組合的標的保持挑選性，但這個計畫的運作完全符合我們的期待，而且機會也在持續增加。

Next question?

下一個問題？

John Guinee, Stifel.

John Guinee，Stifel。

Just going back to these mezz investments, I think just to clarify, somebody had asked you whether these were current or accrued, and you answered current. In reality, the mezz -- the interest payments on these mezz loans are being funded out of the loan proceeds, correct?

回到這些 mezz 投資，我想釐清一下：剛才有人問你這些是當期還是應計，你回答是當期。但實際上，這些 mezz 貸款的利息支付是由貸款款項（loan proceeds）中撥付的，對吧？

Correct, structured just like a typical bank loan. It works the same way as a construction, as an interest reserve built within the loan, and it funds out of that.

對，架構就像典型的銀行貸款一樣。運作方式與建築貸款相同，貸款內建有利息準備金（interest reserve），利息就從那裡撥付。

And then if these deals work well, it's very easy to understand your purchase option at 88% upon completion. But if they don't work out well, you're still essentially buying these, aren't you, because you're in the mezz financing position? This isn't really an option, in that on the downside, you almost have to buy them because you're the mezz lender.

那如果這些案子進展順利，你們在完工時以 88% 行使購買選擇權就很容易理解。但如果進展不順利，你們本質上仍然會買下來，不是嗎？因為你們處在 mezz 融資的位置。這其實不太像選擇權，因為在下行情境下，你們幾乎必須買下來，因為你們是 mezz 放款人。

Like any mezz lender, we have that right, obviously. The developer has the right to take us out. We feel very comfortable with the investments that we've made, again as a mezz lender would, and we feel comfortable at the level that we're in at on that wholesale level. But yes, in essence, you are in first position to take that asset -- good, bad, or indifferent.

就像任何 mezz 放款人一樣，我們當然有那個權利。開發商也有權利把我們的部位清償退出。我們對我們所做的投資非常有信心，就像 mezz 放款人會有的那種信心一樣；而且我們也對我們所處的那個批發層級（wholesale level）的部位水位感到安心。但沒錯，本質上你確實處在第一順位去接手那項資產——不論好壞或結果如何。

So when you're sitting there with your Board and you're talking through this kind of situation, are you better off being a general contractor with a (inaudible) and an option and protecting your balance sheet optically, I think, or are you better off just being 100% primary developer on something like this?

所以當你和董事會坐下來討論這種情況時，你們是當一個總承包商，搭配一個（聽不清）與一個選擇權，從表面上保護資產負債表比較好；還是乾脆在這種案子上當 100% 的主要開發商比較好？

Well, again, you don't have the ability to be 100% primary developer because you have developers that have worked for a few years to get these things to where they are, and those people want their share of equity as well as development fee. So more properly, you have the option of being a joint venture partner from day one, with essentially the same investment but without any benefits that Mike has described.

嗯，再說一次，你沒有能力成為 100% 的主要開發商，因為有些開發商已經花了好幾年把這些案子推到目前的階段，而那些人也希望取得他們的股權份額以及開發費。所以更恰當地說，你可以選擇從第一天起就成為合資夥伴，投資金額本質上差不多，但沒有 Mike 所描述的那些好處。

Right, okay. Thank you.

好，了解。謝謝你。

Thank you. At this time, there are no further questions. I will turn the call back to management for closing remarks.

謝謝。目前沒有其他問題。我將把電話交回管理層作結語。

Well, thanks very much. Appreciate all the time that you guys have given us this morning. We appreciate you following the story, and we look forward to having a great year, and hopefully, you'll continue to follow it. Thank you for your interest.

非常感謝。感謝各位今天早上撥冗參與。我們感謝你們持續關注這個故事，也期待今年會是很棒的一年；希望你們能繼續追蹤。謝謝你們的關注。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。各位現在可以掛線。感謝各位的參與。