AH Realty Trust, Inc (AHRT) 2017 Q1 法說會逐字稿

Welcome to Armada Hoffler's First Quarter 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, May 2, 2017.

歡迎參加 Armada Hoffler 2017 年第一季財報電話會議。(接線員指示) 提醒各位，本次電話會議於今日（2017 年 5 月 2 日，星期二）錄音。

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

現在我想將會議交給 Armada Hoffler 財務長 Michael O'Hara。請開始。

Good morning, and thank you for joining Armada Hoffler's First Quarter 2017 Earnings Conference Call and webcast. On this call this morning, in addition to myself, are Louis Haddad, CEO; and Eric Smith, our Chief Investment Officer, who'll be available for questions.

各位早安，感謝各位參加 Armada Hoffler 2017 年第一季財報電話會議與網路直播。今天早上的電話會議中，除我之外，還有執行長 Louis Haddad，以及我們的投資長 Eric Smith，兩位將可回答提問。

The press release announcing our first quarter earnings, along with our quarterly supplemental package were distributed this morning. A replay of this call will be available shortly after the conclusion of the call through June 2, 2017. The numbers to access the replay are provided in the earnings press release. For those who listen to the rebroadcast of this presentation, remind you that the remarks made herein are as of today, May 2, 2017, and will not be updated subsequent to this earnings call. 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 that we have filed with or furnished to the SEC.

今早我們已發布宣布第一季盈餘的新聞稿，以及季度補充資料包。本次電話會議的重播將於會議結束後不久提供，並可使用至 2017 年 6 月 2 日。存取重播的電話號碼已載於盈餘新聞稿中。對於收聽本次簡報重播者，提醒各位：本次發言係截至今日（2017 年 5 月 2 日）之內容，且在本次財報電話會議後不會更新。在本次電話會議中，我們將作出前瞻性陳述，包括與我們投資組合未來表現、開發案管線、收購與處分之影響、我們的營建業務、投資組合表現與融資活動相關之陳述，以及對前景的評論。提醒聽眾，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有重大差異；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'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 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'm now turning the call over to our Chief Executive Officer, Louis Haddad. Lou?

現在我把電話交給我們的執行長 Louis Haddad。Lou？

Thanks Mike. Good morning, everyone, and thank you for joining us today. Today, we reported first quarter 2017 results of $0.26 of normalized FFO per share, which is in line with our expectations and our per-share guidance for 2017 is unchanged. As we said at the beginning of the year, we remain very focused on delivering the tremendous growth expected from our development pipeline, with delivery commencing a couple of quarters from now and meaningful earnings growth thereafter. We believe these top-quality assets constitute significant value creation for our company. To that end, I've several exciting updates to share with you regarding our development projects.

謝謝 Mike。各位早安，感謝各位今天加入我們。今天我們公布 2017 年第一季每股標準化 FFO 為 0.26 美元，符合我們的預期，且我們 2017 年每股指引維持不變。如同我們在年初所說，我們仍高度專注於交付開發案管線所預期的強勁成長；相關交付將在未來幾個季度開始，之後將帶來顯著的盈餘成長。我們相信，這些頂級資產將為公司創造可觀價值。為此，我有幾項關於我們開發專案的令人振奮更新要與各位分享。

Let's begin with the latest additions to Star pipeline and work through to those closest to completion.

我們先從 Star 管線的最新新增案開始，並一路談到最接近完工的專案。

Last month, we announced $100 million development of 2 student housing projects on the historic Charleston peninsula. Land assemblage and the lengthy entitlement process were performed by our local partner, Spandrel Development, and we expect to break ground this summer. Market research indicates there is currently a shortage of over 5,000 beds for this type of housing. We will deliver over 600 new beds within 1 mile of the College of Charleston and in close proximity to 5 other schools in this sought-after District. With these 2 projects, we will be the largest developer and owner of off-campus student housing in Charleston. And we look forward to becoming a major player in this high barrier to entry market.

上個月，我們宣布在歷史悠久的查爾斯頓半島開發兩個學生住宅專案，總金額 1 億美元。土地整合與冗長的許可核准流程由我們的在地合作夥伴 Spandrel Development 完成，我們預期今年夏天動工。市場研究顯示，目前此類住宅床位短缺超過 5,000 床。我們將在距離查爾斯頓學院（College of Charleston）1 英里內交付超過 600 個新床位，且鄰近該熱門區域內另外 5 所學校。透過這兩個專案，我們將成為查爾斯頓校外學生住宅最大的開發商與業主。我們也期待在這個高進入門檻的市場中成為重要參與者。

Next is our new office building at Brooks Crossing, which is essentially 100,000 square foot build-to-suit for Huntington Ingalls, a Fortune 400 company. The design for this 100% pre-leased building is well underway, and we expect to break ground by the end of summer. This state-of-the-art facility will house nearly 600 employees when opened in the fourth quarter of 2018. This building should be a great catalyst for further development in this public-private partnership with the city of Newport News.

接下來是我們位於 Brooks Crossing 的新辦公大樓，基本上是一棟約 100,000 平方英尺、為《Huntington Ingalls》（財富 400 強企業）量身打造的專案。這棟 100% 預先出租的大樓設計已在積極進行中，我們預期在夏末前動工。這座最先進的設施在 2018 年第四季啟用時，將容納近 600 名員工。此大樓應可成為我們與紐波特紐斯市（Newport News）公私協力夥伴關係中，推動後續開發的重要催化劑。

Our Harding Place project in Downtown Charlotte is well underway, and we are very pleased with the occupancy and rent growth that the submarket continues to display. Construction of Phase 6 of the town center of Virginia Beach is now in the vertical stage and is tracking for delivery next summer. This entire block will have a variety of entertainment options, as well as exciting new retailers and loft-style apartment homes. The Town Center of Virginia Beach continues to be our flagship project, and we are currently pursuing further expansion of this preeminent development.

我們位於夏洛特市中心（Downtown Charlotte）的 Harding Place 專案進展順利，我們對該次級市場持續展現的入住率與租金成長感到非常滿意。維吉尼亞海灘市中心（Town Center of Virginia Beach）第 6 期工程目前已進入地上結構施工階段，並按計畫於明年夏天交付。整個街區將提供多元娛樂選擇，以及令人期待的新零售商與閣樓式公寓住宅。維吉尼亞海灘市中心持續是我們的旗艦專案，我們目前也正推動此一頂尖開發案的進一步擴張。

The Point Street and Annapolis Junction multifamily projects in Maryland are both on track to be delivered later this year. Given their prime locations and compelling market dynamics, we're excited about these projects and fully expect to exercise our at-cost purchase options.

我們在馬里蘭州的 Point Street 與 Annapolis Junction 兩個多戶住宅專案，皆按計畫於今年稍晚交付。鑑於其優越地點與具吸引力的市場動能，我們對這些專案感到振奮，並完全預期將行使我們的按成本價購買選擇權。

Perhaps most significant is the leasing progress at One City Center in downtown Durham. Recently, we entered into an LOI for a large block of the remaining office space. Assuming lease execution, this commitment, along with the Duke University anchor lease, will ensure that the building opens in the summer of 2018, with office occupancy of at least 90%.

或許最重要的是，達勒姆市中心（downtown Durham）One City Center 的出租進度。近期，我們就剩餘辦公空間中的一大區塊簽訂了意向書（LOI）。若能完成租約簽署，該承諾加上杜克大學（Duke University）的主力租戶租約，將確保大樓於 2018 年夏季啟用時，辦公入住率至少達 90%。

All told, the total cost of the projects in our current pipeline approaches $440 million. Given our history of delivering healthy wholesale to retail spreads of around 20%, we expect that these projects alone will add some $90 million to NAV, or well over $1 per share on a fully-diluted basis over the next few years. Remember, this does not include many other exciting development opportunities that we continue to explore in virtually all of our existing markets as well as new areas within the region. However, I believe it is important to note that we continue to be very selective and decline the vast majority of opportunities presented to us.

總體而言，我們目前管線中各專案的總成本接近 4.4 億美元。鑑於我們過去交付約 20% 的健康「批發到零售」價差（wholesale to retail spreads）之紀錄，我們預期僅這些專案在未來幾年就可為淨資產價值（NAV）增加約 9,000 萬美元，或在完全稀釋基礎下每股增加遠超過 1 美元。請記得，這還不包含我們在幾乎所有既有市場以及區域內新地點持續探索的其他令人振奮的開發機會。不過，我認為重要的是要指出，我們仍然非常審慎，並拒絕呈現在我們面前的絕大多數機會。

The standards we use to evaluate whether to deploy our precious capital on a new project remain and will continue to be exceedingly strict. All of these decisions are considered in light of our position as far and away the largest equity holder in the company.

我們用以評估是否在新專案上投入寶貴資本的標準，仍然並將持續極為嚴格。所有這些決策，都是在我們作為公司迄今為止最大股權持有人之立場下加以考量。

In addition to this robust development activity, we are very pleased with the performance of our existing portfolio. Although there will be very little impact on the current year, the new 40,000 square-foot tenant at 4525 Main, combined with the existing Town Center tenants who relocated, upgraded and expanded into this building will bring the occupancy to over at 93%. We've achieved our goal of holding rents at this, the premier address, in the region.

除了強勁的開發活動外，我們也對既有投資組合的表現感到非常滿意。雖然對本年度的影響很小，但 4525 Main 新增的 40,000 平方英尺租戶，加上既有 Town Center 租戶搬遷、升級並擴租至該大樓，將使入住率提升至 93% 以上。我們已達成在此一區域首屈一指的黃金地段維持租金水準的目標。

Nearly as significant, these relocations created vacancy in lower price points space elsewhere in Town Center that appeals to a wider variety of prospective tenants. To this end, 4 new tenants are poised to sign leases that start to backfill second-generation space. We're well on our way to bringing office occupancy at Town Center back to its historic levels in the mid-to-high 90s. On a separate note, we feel confident that once the necessary disruption caused by the construction of Phase 6 is mitigated, the multifamily component will return to its normal mid-90s occupancy levels.

同樣重要的是，這些搬遷也在 Town Center 其他較低租金水準的空間造成空置，對更廣泛類型的潛在租戶更具吸引力。為此，已有 4 位新租戶準備簽署租約，開始回填第二代空間（second-generation space）。我們正穩步推進，將 Town Center 的辦公入住率恢復至歷史水準的 90% 中段至高段。另外一點，一旦第 6 期施工所造成的必要干擾獲得緩解，我們有信心多戶住宅部分將回到正常的 90% 中段入住率水準。

The rest of the portfolio continues to perform well. In particular, our retail assets continue to increase both in occupancy as well same-store sales. As most of you know, our concentration for this sector is in high-volume, well-located, grocery-anchored shopping centers. We have always avoided malls and department stores and limited our exposure to big-box retailers. This strategy has served us well for nearly four decades. And in our target markets in the mid-Atlantic and Southeast, we feel that the high-quality, food-anchored model will continue to be strong for the foreseeable future.

投資組合其餘部分持續表現良好。尤其是，我們的零售資產在出租率以及同店銷售方面都持續提升。如各位所知，我們在此領域的配置集中於人流量高、地點優越、以超市為主力店（grocery-anchored）的購物中心。我們一向避免投資購物商場與百貨公司，並限制對大型賣場零售商的曝險。這項策略近四十年來一直讓我們受益良多。而在我們鎖定的中大西洋與美國東南部市場，我們認為高品質、以食品為主力店的模式在可預見的未來仍將保持強勁。

In this regard, we're actively pursuing the expansion of this line of business.

在這方面，我們正積極推動擴展這條業務線。

Recently, we entered into an agreement with SJ Colins, a seasoned developer of high-quality, grocery-anchored retail centers to deliver a Whole Foods center in Decatur, Georgia. We are hopeful that this relationship will lead to more opportunities with both this developer and exclusive retailer.

近期，我們與SJ Colins達成協議；SJ Colins是具豐富經驗的高品質、以超市為主力店之零售中心開發商，將在喬治亞州迪凱特（Decatur, Georgia）交付一座Whole Foods中心。我們期望這段合作關係能為我們帶來更多機會，無論是與該開發商或與獨家零售商的合作。

Lastly, our construction company continues to exceed even our lofty expectations both from a cost control and schedule basis on our own projects, as well as producing profits at the high end of our historical range in the third-party business. Many of the complex projects we take on and financial structures we employ are made possible by this unique expertise we enjoy relative to our peers.

最後，我們的營造公司在自有專案上，無論在成本控管或工期進度方面都持續超越我們原本很高的期待；同時在第三方業務上，也在本季於我們歷史區間的高端水準創造利潤。我們承接的許多複雜專案以及所採用的財務結構，之所以能夠實現，正是因為相較同業我們具備這項獨特專業能力。

In closing, our business model has served us well for nearly 4 decades. With a growing stable of trusted and like-minded development partners, we've been able to increase our development run rate without compromising our core underwriting criteria, premier locations, credit quality anchor tenants, accretive returns and healthy wholesale to retail spreads. The sheer volume of opportunities allows us to select only the most attractive projects to diligence, and then only a fraction of those are pursued in earnest. With this combination of opportunities and execution, along with the performance of our properties, it should be easy to see why we're so optimistic about the continued growth of our company.

總結而言，我們的商業模式近四十年來一直運作良好。隨著可信賴且理念相近的開發合作夥伴陣容持續擴大，我們得以在不犧牲核心承作（underwriting）標準、優質地段、主力店承租戶的信用品質、具增益性的報酬，以及健康的批發轉零售價差（wholesale to retail spreads）的前提下，提高開發節奏。龐大的機會量使我們能只挑選最具吸引力的專案進行盡職調查，而其中也僅有一小部分會被我們認真推進。結合這樣的機會與執行力，再加上我們物業的表現，不難理解為何我們對公司持續成長如此樂觀。

At this time, I'll ask Mike to walk through the details and key assumptions underlying our first quarter results and 2017 guidance.

接下來，我請Mike為各位說明第一季業績與2017年指引背後的細節與關鍵假設。

Thanks Lou. Today, I want to cover the highlights of the quarter, thoughts on our balance sheet, additional details on our 2017 guidance. This morning, we put an FFO of $0.27 per share and normalized FFO of $0.26 per share, which met our expectations. The construction company results beat expectations this quarter, which offset the delay of the Sandbridge out-parcel sale until next quarter. During the quarter, we sold a single-tenant asset at a 5 cap, which resulted in a gain of $3.4 million. This gain is excluded from FFO. But despite this treatment, as we've discussed in the past, asset sales and capital recycling will continue to be an important element of future shareholder value creation. This quarter represents the 11th consecutive quarter of same-store NOI growth. Same-store NOI was positive 1% and positive 2% on a cash basis as compared to the first quarter of 2016.

謝謝Lou。今天我想說明本季重點、對資產負債表的看法，以及2017年指引的更多細節。今天早上我們公布每股FFO為0.27美元、每股標準化FFO（normalized FFO）為0.26美元，符合我們的預期。本季營造公司業績優於預期，抵銷了Sandbridge外圍地塊（out-parcel）出售延後至下季的影響。本季我們以5%資本化率（5 cap）出售一項單一承租戶資產，產生340萬美元的處分利益。此項利益不計入FFO。但儘管如此，正如我們過去所討論，資產出售與資本循環（capital recycling）仍將是未來創造股東價值的重要要素。本季為同店NOI連續第11季成長。同店NOI較2016年第一季增加1%，以現金基礎計算則增加2%。

Again to the quarter, our core operating portfolio occupancy was 94% with office at 88%, retail at 97% and multifamily at 93%. Office occupancy is lower than our historic range because, as discussed last quarter, 2 tenants are expanding and relocating to 4525 Main Street from other Town Center office buildings. 4525 Main Street is not currently included in our core operating properties. These relocations began to affect same-store NOI this quarter, which will continue in 2017.

回到本季，我們核心營運投資組合的出租率為94%，其中辦公為88%、零售為97%、多戶住宅（multifamily）為93%。辦公出租率低於我們的歷史區間，原因是如上季所述，有2位承租戶正擴租並從其他Town Center辦公大樓搬遷至4525 Main Street。4525 Main Street目前尚未納入我們的核心營運物業。這些搬遷本季開始影響同店NOI，並將在2017年持續。

This quarter, we made a change to the property portfolio section of the supplemental package. In prior supplementals, tenant ground leases were segregated from the property to which they were located and excluded from occupancy and average base rent calculations. In most cases, the ground lease tenant is the anchor tenant for the Center. We are now including these ground leases with the property, which we believe is less confusing. For example, previously, the Hanbury Village Harris Teeter ground lease was listed in the ground lease section and not listed as the anchor tenant for Hanbury Village. With this change, retail occupancy increased with the ground lease included in occupancy, and this also lowered average base rent. Under the previous calculation, retail occupancy would have increased from 95.8% to 96.1% and now under the new calculation increase from 96.1% to 96.7%.

本季我們調整了補充資料（supplemental package）中「物業投資組合」章節的呈現方式。在先前的補充資料中，承租戶的地租（ground lease）會自其所在物業中分離列示，並且不納入出租率與平均基本租金（average base rent）的計算。多數情況下，地租承租戶即為該中心的主力店承租戶（anchor tenant）。我們現在將這些地租併入物業一併揭露，我們認為這樣較不易造成混淆。例如，以前Hanbury Village的Harris Teeter地租列在地租章節，並未列為Hanbury Village的主力店承租戶。在此變更下，零售出租率因將地租納入出租率計算而提高，同時也使平均基本租金下降。依舊制計算，零售出租率會從95.8%提高至96.1%；而在新制下，則從96.1%提高至96.7%。

On the construction front, we reported a segment gross profit in the fourth quarter of $2.3 million on revenue of $64 million. This is another strong quarter for this segment of our business. The construction company typically contracts on a guaranteed maximum price basis, inclusive of a savings split with third-party owners. The amount of the total savings and corresponding savings split is usually not determined until the construction is close to completion. This quarter, profits from the saving split on $180 million contract was recognized. With this strong quarter, we're raising the guidance for this segment. At the end of the quarter, the company had a third-party construction backlog of $157 million.

在營造方面，我們在第四季報告該部門營業毛利為230萬美元，營收為6,400萬美元。這是我們該業務部門又一個強勁的季度。營造公司通常以保證最高價（guaranteed maximum price）方式承攬，並包含與第三方業主的節省金額分成（savings split）。總節省金額及相對應的分成通常要到工程接近完工時才會確定。本季認列了一份1.8億美元合約的節省分成所帶來的利潤。基於本季強勁表現，我們上調該部門的指引。截至季末，公司第三方營造在手訂單（backlog）為1.57億美元。

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, selling assets and continued use of our ATM program. We used the ATM program last quarter to raise $3.5 million of gross proceeds at an average price of $14.17 per share. At the end of the quarter, we had total outstanding debt of $528 million, including $82 million outstanding under the $150 million revolving credit facility. In January, we added 4 properties to the credit facility borrowing base to increase the capacity by $25 million to a total of $275 million. We continued to evaluate exposure to higher interest rates and look for opportune times to enter into hedges. At quarter end, 97% of REIT debt was either fixed or hedged.

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（credit facility）容量、對利率曝險進行避險、出售資產，以及持續使用ATM增發計畫。我們在上季透過ATM計畫募集350萬美元的總募資額，平均價格為每股14.17美元。截至季末，我們未償還總負債為5.28億美元，其中包含在1.5億美元循環信用額度（revolving credit facility）下動用的8,200萬美元。1月我們將4項物業納入信用額度的借款基礎（borrowing base），使額度容量增加2,500萬美元至總計2.75億美元。我們持續評估利率上升的曝險，並尋找適當時點進行避險。截至季末，REIT債務中有97%為固定利率或已避險。

During the quarter, we purchased a 2-year $50 million interest rate cap at 1.5% to replace the cap that matured on March 1. During 2017, we continue to position the balance sheet for the development pipeline and associated growth through opportunistic asset sales. In the first quarter, we sold a single-tenant asset cap at -- single-tenant asset of a 5 cap for $4.6 million. In addition, we have another single-tenant building under contract with expected closing during the third quarter. The proceeds from these sales will be used to balance sheet purposes. We continue to evaluate our portfolio for opportunistic sale candidates.

本季我們購買了一項2年期、名目金額5,000萬美元、上限利率1.5%的利率上限（interest rate cap），以取代於3月1日到期的上限合約。2017年期間，我們將持續透過伺機的資產出售，為開發管線及其相關成長調整資產負債表配置。第一季，我們以5%資本化率（5 cap）出售一項單一承租戶資產，成交價為460萬美元。此外，我們另有一棟單一承租戶大樓已簽約，預期於第三季完成交割。這些出售所得將用於資產負債表相關用途。我們持續評估投資組合中可伺機出售的標的。

Next, the continued use of the ATM program, which we believe is one of the most efficient manners for us to fund our growth and development activities and, finally, increasing the capacity of our credit facility by $25 million to $275 million.

接下來是持續使用ATM增發計畫；我們認為這是為我們的成長與開發活動籌資最有效率的方法之一；最後，將我們的信用額度容量增加2,500萬美元至2.75億美元。

Now for an update on our full year 2017 guidance that we issued this morning. We expect 2017 normalized FFO in the range of $0.99 to $1.3 per share, which is unchanged from our initial guidance. As previously discussed, we believe that 2017 is the year of execution and positioning the balance sheet for the development pipeline and future growth. In addition, with no NOI contribution this year from new development projects, the midpoint of the 2017 guidance is flat with 2016. This is similar to 2014, prior to delivery of the IPO pipeline. Once the pipeline delivery began in late 2014, normalized FFO per share increased by 23% over the subsequent 3 years.

現在更新一下我們今早發布的 2017 全年指引。我們預期 2017 年標準化 FFO（營運資金來源）介於每股 0.99 美元至 1.3 美元之間，與我們最初的指引一致。如先前所討論，我們認為 2017 年是執行之年，並為開發案管線與未來成長調整資產負債表定位。此外，由於今年新開發專案不會帶來 NOI（淨營運收入）貢獻，2017 年指引的中位數與 2016 年持平。這與 2014 年（IPO 管線交付前）相似。當管線於 2014 年底開始交付後，隨後 3 年標準化每股 FFO 成長了 23%。

Now the details of the 2017 guidance. This updated guidance is predicated on the following assumptions: Disposition of a single-tenant asset during third quarter with the proceeds being used for balance sheet purposes, raising $53 million through the ATM program. This is an increase from last quarter to fund additional development activities. Interest expense is calculated on the forward LIBOR curve. 2017 guidance of $0.99 to a $1.3 per share is predicated on the following: Total NOI in a $73.7 million to $74.2 million range, third-party construction gross profit in the $5.6 million to $6.3 million range, general and administrative expenses in a $10.6 million to $11 million range, interest income from our mezzanine financing program in a $6.7 million to $6.9 million range. This was an increase from last quarter. And as we mentioned, we entered into an agreement with a Whole Foods developer. The initial step with this developer is funding equity on this project under our mezzanine loan program. At the end of the quarter, the aggregate balance of these mezzanine loans was $61 million, interest expense in the $18 million to $18.5 million range and $57 million of weighted-average shares outstanding.

接下來說明 2017 年指引的細節。本次更新指引係基於以下假設：第三季處分一項單一承租戶資產，所得款項用於資產負債表相關用途，並透過 ATM 計畫募集 5,300 萬美元。相較上季有所增加，以支應更多開發活動。利息費用係依遠期 LIBOR 曲線計算。2017 年每股 0.99 美元至 1.3 美元的指引係基於以下項目：總 NOI 介於 7,370 萬美元至 7,420 萬美元；第三方施工毛利介於 560 萬美元至 630 萬美元；一般及行政費用介於 1,060 萬美元至 1,100 萬美元；來自我們夾層融資計畫的利息收入介於 670 萬美元至 690 萬美元。此項較上季增加。並且如我們所提到的，我們已與一位 Whole Foods 的開發商簽訂協議。與該開發商合作的第一步，是在我們的夾層貸款計畫下，為此專案提供股權資金。截至本季末，這些夾層貸款的合計餘額為 6,100 萬美元；利息費用介於 1,800 萬美元至 1,850 萬美元；加權平均流通股數為 5,700 萬股。

Now I'll turn the call back to Lou.

現在我把電話交回給 Lou。

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

謝謝你，Mike。也感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) Our first question comes from Dave Rodgers with Robert W. Baird.

（接線員指示）我們的第一個問題來自 Robert W. Baird 的 Dave Rodgers。

Hey, Lou, I just wanted to talk about 4525. I know that came together maybe a little bit more quickly than you would have hoped or originally anticipated as you had looked for some vacancy. How much -- how many of the holes do you have to kind of backfill? You said that there are 4 new tenants. Does that kind of fill the substantial vacancy left behind? And just any more details on the lease at 4525, because I don't think it shows up in the supplement yet.

嗨，Lou，我想談一下 4525。我知道那件事的進展可能比你希望或原先預期的更快一些，因為你原本在等一些空置出現。你們還有多少空缺需要補租？你提到有 4 個新租戶。這是否大致填補了先前留下的主要空置？另外，關於 4525 的租約還有沒有更多細節？因為我覺得它在補充資料裡還沒出現。

Sure. On the large lease that we talked about last quarter was the 40,000 square-foot lease with a -- I believe it's a 12-year lease that's there. So it's a software company that we're really excited about. It's growing by leaps and bounds here in the area.

當然。我們上季提到的那筆大型租約，是一份 40,000 平方英尺的租約——我記得是 12 年期。這是一家軟體公司，我們對此非常興奮。它在本地區成長非常迅速。

With regards to the backfill, Dave, the best way to look at this -- unfortunately, when -- we're kind of trapped by what's in the portfolio and what's in development but not stabilized yet and all that kind of thing. The best way to look at it is Town Center has about 800,000 square feet of office space. Right now there are about 80,000 square feet of vacancy. So our historical norm has been in the mid-90s, so we've got about 40,000-some square feet to lease. A couple of those new -- the new 4 tenants are about 20,000 square feet. I think 2 of them are already in the number that -- the occupancy number that I quoted; 2 of them are not. We have about 35,000, 40,000 square feet of space to lease to get to that 95% mark.

至於補租（backfill），Dave，最好的看法是——不幸的是，當我們——我們有點受限於投資組合裡的資產，以及仍在開發但尚未穩定（stabilized）的部分等等。最好的方式是這樣看：Town Center 約有 800,000 平方英尺的辦公空間。目前約有 80,000 平方英尺空置。我們歷史常態的出租率在 90% 中段，所以我們大概還有 40,000 多平方英尺需要出租。那 4 個新租戶中，有幾個——這 4 個新租戶合計大約 20,000 平方英尺。我想其中 2 個已經包含在我剛才引用的入住率數字裡；另外 2 個還沒有。我們大概還有 35,000 到 40,000 平方英尺需要出租，才能達到 95% 的水準。

And that's in addition to the 4 leases you just talked about?

那是另外再加上你剛提到的那 4 份租約之後，仍然還有的面積嗎？

Correct. That's spread across 5 buildings.

沒錯。這些分布在 5 棟大樓。

Got you. Okay. And then I guess with regard to -- you had talked about Charleston previously and now looking at the Decatur project. Are you comfortable continuing to expand the footprint of the development business and the ownership operation after that? And are you continuing to look at new markets in addition to where you have just added here in the recent past?

了解。好。接著我想問——你之前談到 Charleston，現在又在看 Decatur 專案。在那之後，你是否仍然有信心持續擴大開發業務與持有營運版圖？另外，除了你們近年新增的市場之外，是否也持續在尋找新的市場？

Thanks for that question, Dave. I want to make sure that those on the phone know of our history. We are experienced, over the last 4 decades, in 13 states up and down the east coast. The markets that we're talking about now, be they Charleston or Georgia or Central Florida, those are all markets that we're familiar with and have done business in before. So it's really not new for us. It's just -- it was kind of the luck of the draw when we came public that we were very much Virginia-centric. So these are not really an expansion of our footprint from our historical norm.

謝謝這個問題，Dave。我想確保電話上的各位了解我們的歷史。過去 40 年，我們在美國東岸南北共 13 個州都有經驗。我們現在談到的市場，不論是 Charleston、喬治亞州或佛羅里達中部，都是我們熟悉、也曾經做過生意的市場。所以對我們來說其實不算新。只是——我們上市時有點機緣使然，當時業務非常以維吉尼亞州為中心。因此，這些其實並不是相對於我們歷史常態的版圖擴張。

Great. And maybe last question for me. Mike, you talked about dispositions in the guidance. I might've missed the number. You said a third quarter disposition. I missed a number if you said it. If you didn't, maybe give us a little context around the types of assets that you expect to continue to sell. And as the development pipeline continues to grow, could we see that disposition number grow throughout the year?

很好。我最後一個問題。Mike，你在指引裡提到資產處分。我可能漏聽了金額。你說第三季會有一筆處分。如果你有提到數字我漏掉了。如果沒有，能否請你提供一些背景：你們預期會持續出售哪些類型的資產？另外，隨著開發管線持續成長，我們是否可能看到全年處分金額也跟著增加？

Good morning, Dave. This is another small sale like the Wawa, you know. We're taking a look at the single tenant, one-off type buildings that aren't essential to our business. So this sale is the Courthouse 7-Eleven. It's not a big asset but it's going to be proceeds in the $2.4 million range. The other things we're looking at are the other single-tenant office buildings that we discussed in the past.

早安，Dave。這又是一筆像 Wawa 那樣的小型出售，你知道的。我們正在檢視那些單一承租戶、一次性（one-off）且非我們核心業務所必需的建物。所以這次要賣的是 Courthouse 的 7-Eleven。這不是大型資產，但預計可取得約 240 萬美元的處分款項。我們另外也在評估先前討論過的其他單一承租戶辦公大樓。

Okay. But the only thing in the guidance is the first quarter sale of the Wawa and then this small disposition of the third quarter?

好的。所以指引裡只有第一季出售 Wawa，以及第三季這筆小型處分？

Correct.

正確。

Our next question comes from John Guinee with Stifel.

下一個問題來自 Stifel 的 John Guinee。

Couple of questions. One on retail and the other one your Mezz business. You -- you mentioned, Lou, that you've got $400 million in the pipeline on Page 16, of which you have the benefit of exercising purchase options at cost. That's -- and there's a lot of value creation. That's the good news. The bad news is it takes a lot of equity to do it. Can you do this all with ATM equity issuance? Or how do you plan to fund $400 million of purchase options?

我有幾個問題。一個關於零售，另一個關於你們的夾層（Mezz）業務。Lou，你提到在第 16 頁你們有 4 億美元的管線，其中你們可受益於以成本價行使購買選擇權。這——而且有很大的價值創造空間。這是好消息。壞消息是，執行這些需要大量股權資金。你們能只靠 ATM 發行股權就完成嗎？或者你們打算如何為 4 億美元的購買選擇權提供資金？

Yes. Couple of answers there and then I'll it turn over to Mike for a little bit more specifics. First on, as we've said before, we're not certain that we won't monetize a couple of these assets as well as dispositions from the stable portfolio. Secondly, the ATM is operating very well. We continue to use that. Thirdly, aside from the 2 large mezzanine projects that will be purchased, the rest of the projects are being funded on balance sheet. And so we're keeping within our norms regarding that.

是的。這裡有幾個回答，然後我會把時間交給 Mike，再補充一些更具體的內容。第一，如同我們先前所說，我們不確定是否也會將其中幾項資產變現，以及處分穩定型投資組合中的資產。第二，ATM（隨市發行）運作得非常好。我們會持續使用它。第三，除了將會購入的兩個大型夾層（mezzanine）專案之外，其餘專案都由資產負債表內資金提供。因此我們在這方面仍維持在一貫的規範範圍內。

Mike, do you want to add anything to that?

Mike，你要補充什麼嗎？

Yes. Couple of things on the balance sheet, John. So at quarter-end here, our debt metrics are at the low end of our corporate goals. Our core debt-to-EBITDA is at 6x and our overall debt-to-EBITDA is 6.5x. And where we sit today is, if you take a look at the development projects we've delivered, the mezzanine loans and the City Center joint venture, we're funded 90% of all that equity, including the Decatur Mezz loan. So from that standpoint, we've funded all that. So what we're looking at now are the projects that are coming out of the ground right now. We've got 2 that are just coming out of the ground. We have the other 3 in pre-development. So those are not going to start hitting the balance sheet till late this year. And as we've discussed, we've got until as late as '19 to exercise our options on the other properties. So from that standpoint, John, we feel pretty good about it.

是的。John，關於資產負債表有幾點。截至本季季末，我們的負債指標位於公司目標區間的低端。我們的核心負債對 EBITDA 為 6 倍，整體負債對 EBITDA 為 6.5 倍。而以我們目前的位置來看，如果你看我們已交付的開發專案、夾層貸款以及 City Center 合資案，我們已為其中 90% 的權益資金完成出資，包括 Decatur 夾層貸款。所以從這個角度來看，我們已把那些都出資到位。我們現在關注的是目前正在動工、從地面起建的專案。我們有 2 個才剛開始動工。另外 3 個仍在前期開發階段。因此這些要到今年稍晚才會開始反映在資產負債表上。而且如同我們討論過的，我們最晚可到 2019 年才需要行使其他物業的選擇權。所以從這個角度來看，John，我們對此感覺相當不錯。

Got you. Okay. And the second thing is you basically have done a great job of 1031 exchanging out of single-tenant office buildings into food/drug anchored retail centers up and down the mid-Atlantic. Can you talk about your ability to keep these retail centers full? And potentially, what's happening with rental rates right now in your world of retail?

了解。好。第二點是，你們基本上在把單一承租戶辦公大樓透過 1031 交換，換成遍布中大西洋地區、以食品/藥妝主力店（food/drug anchored）的零售中心方面做得非常好。你能談談你們維持這些零售中心滿租的能力嗎？以及目前在你們的零售領域，租金水準的情況如何？

Sure. John, we've had a really good same-store sales growth in our retail portfolio, as I've mentioned several times before. These are largely grocery-anchored shopping centers that have very high sales volume. And when you have high sales volume, you can keep your small shops full and expanding. We don't see any interruptions in that across the portfolio. So we believe that model's going to continue to be very strong in our markets. And as I mentioned, we're going to look to continue to expand that. I think you still might see some 1031 activity with a couple of projects that Mike mentioned. But that's going to continue to be a focus for us.

當然。John，我們的零售投資組合在同店銷售成長方面表現非常好，我之前也提過好幾次。這些多半是以超市為主力店的購物中心，銷售額非常高。當銷售額高時，你就能讓小店鋪維持滿租並持續擴張。我們在整個投資組合中沒有看到任何中斷的跡象。因此我們相信這個模式在我們的市場會持續非常強勁。而且如我所提，我們會尋求持續擴大這一塊。我認為你仍可能會看到一些 1031 活動，涉及 Mike 提到的幾個專案。但這仍會是我們的重點。

Mike?

Mike？

So John, the other thing is the re-leasing spreads this last quarter are really strong. So on retail, our re-leasing spreads were positive 7% on a GAAP and 6% on a cash basis. And included in there, we're seeing some of our tenants pick up the options. Like this past quarter, we had Food Lion, Regal, P.F. Changs pick up their options this past quarter.

John，另外一點是，上季的續租價差（re-leasing spreads）非常強勁。因此在零售方面，我們的續租價差以 GAAP 計為正 7%，以現金基礎計為正 6%。其中也包含我們看到部分租戶選擇行使續租選擇權。例如上季 Food Lion、Regal、P.F. Changs 都行使了他們的選擇權。

Our next question comes from Rob Stevenson with Janney Montgomery Scott.

下一個問題來自 Janney Montgomery Scott 的 Rob Stevenson。

Lou, we've had a couple of questions here on retail and just one more here. I mean, as you think about the sort of future funding requirements, how are you thinking about the retail portfolio strategically today as potentially a source of capital? Especially, where is -- where do you think that those assets monetize? And how does that compare to the cost of capital with your raising on your ATM these days? If you wanted to sell a grocery-anchored strip center, I mean, what does that look for you in terms of market pricing and liquidity levels there to be able to do something like that versus -- you know, if the stock price falls and the price on your ATM goes up?

Lou，我們這裡有幾個關於零售的問題，再補一個。我是說，當你思考未來的資金需求時，你今天在策略上如何看待零售投資組合，是否可能作為資金來源？特別是——你認為這些資產在哪個價位可以變現？以及這與你們目前透過 ATM 募資的資本成本相比如何？如果你想賣出一個以超市為主力店的街邊型購物中心（grocery-anchored strip center），就市場定價與流動性而言，對你們會是什麼樣子，能否做這樣的事；相較之下——你知道，如果股價下跌、你們 ATM 的發行價格上升的話？

That's a great question, Rob. This is something that we spent an awful lot of time on and we continually evaluate. Right now, as you know, our cost to capital in our world is high. And so, therefore, we always want to evaluate whether or not it makes sense to raise equity and continuing to expand the portfolio versus REIT some of the low cap rate projects that we have in the portfolio. We're going to continue to do that. And I would see -- you know, there are so many dynamic factors of what's going on. I would tell you that there are 2 lenses that we look at -- that we've looked at for a very long time. As you guys know, it's my 33rd year here.

這是個很好的問題，Rob。這是我們投入非常多時間、並且持續評估的事情。如你所知，目前在我們這個領域的資本成本偏高。因此，我們總是要評估：究竟是募股並持續擴張投資組合更合理，還是把投資組合中一些低資本化率（low cap rate）的專案以 REIT 的方式（變現/處分）更合理。我們會持續這麼做。而且我會看到——你知道，現在有太多動態因素在發生。我會告訴你，我們有兩個視角——而且我們長期以來一直用這兩個視角來看。各位也知道，這是我在這裡的第 33 年。

The first lens is the right real estate decision, forgetting -- with all due respect, forgetting what the market is expecting and the like. But the right real estate decision is always to upgrade your portfolio. And so any time that we're looking at bringing something in, be it a development project, a mezzanine project or an acquisition, rather than just saying let's add to the mix, we want to look it and see if there are candidates to get rid of at the same point in time to a 1031 or adding to the balance sheet in order to further upgrade the portfolio from a NAV basis.

第一個視角是做出正確的不動產決策——恕我直言，先不管市場期待什麼之類的。但正確的不動產決策永遠是提升投資組合品質。因此每當我們考慮納入某個項目，不論是開發專案、夾層專案或收購案，我們不只是說「把它加進來」，而是會同時檢視是否有可以在同一時間處分的標的，透過 1031 交換或調整資產負債表配置，以便從 NAV 的角度進一步升級投資組合。

And secondly, and perhaps even more dear, we are, as I mentioned, far and away the largest shareholder and so we're always looking at dilution as well. There is no -- there's no benefit to us just expanding this company for the sake of expanding this company. The benefit is all in getting an accretive share price, continuing to raise the dividend in a responsible basis so that we can all retire happy someday.

第二，而且可能更重要的是，如我提到的，我們是遠遠最大的股東，因此我們也一直在關注稀釋問題。我們沒有——我們不會為了擴張而擴張這家公司，對我們沒有任何好處。好處在於讓每股價格具增值性（accretive），並以負責任的方式持續提高股利，這樣我們有一天都能開心退休。

I guess, said another way, is a well-leased food anchor -- or Food Lion-anchored grocery center ever worth more than right after Food Lion extends its lease?

換個說法，一個租約良好、以食品主力店——或以 Food Lion 為主力店的超市中心，在 Food Lion 剛延長租約之後，是否會是最值錢的時點？

That's a very good question. Again, you've got to look beyond those numbers into what those sales are doing. The Food Lion centers that we have -- that we continue to operate -- as we mentioned, Food Lion has picked up their options. They pick up those options because there are high sales for Food Lions. When there are high sales, then we get good growth in our small shops. And as Mike mentioned, the re-leasing spreads are pretty favorable. That said, we're continually looking to upgrade the portfolio. And as much as Food Lion has been good to us, that's not a name that we want to have a large concentration in. So you may well see us reap those dollars.

這是個非常好的問題。同樣地，你必須超越那些數字，去看銷售表現如何。我們擁有並持續營運的 Food Lion 中心——如我們提到的，Food Lion 已行使他們的選擇權。他們之所以行使選擇權，是因為這些 Food Lion 店的銷售額很高。當銷售額高時，我們的小店鋪就能有良好的成長。而且如 Mike 所提，續租價差相當有利。話雖如此，我們仍持續尋求升級投資組合。儘管 Food Lion 對我們一直很好，但這不是我們希望高度集中持有的品牌。所以你很可能會看到我們把這些價值收割變現。

Okay. Anything that should meaningfully positively or negatively impact same-store NOI growth over the remainder of '17? In other words, should the full year '17 NOI growth be roughly in line with the 1% gap, 2% cash that you guys reported in the first quarter here? Or is there something that we should be mindful of that impacts over the final 3 quarters going to move that around up or down meaningfully?

好。在 2017 年剩餘期間，有沒有什麼因素會對同店 NOI 成長造成顯著的正面或負面影響？換句話說，2017 全年的 NOI 成長是否應大致與你們第一季所報告的 GAAP 1%、現金 2% 的差距（gap）相近？或者我們需要留意什麼會在接下來三個季度對其造成顯著上移或下移的影響？

Thanks again for another great question. So there are 2 anomalies that Mike and I believe are going to affect same-store sales later on in '17. One is in multifamily. As we've mentioned, we've got a pretty significant amount of disruption right in front of the Cosmopolitan Apartments here at Town center. Occupancy fell this past quarter and is now in the mid-80s. We expect that to continue to be a drag until we at least can close in the construction of the new phase, which won't be until fall, if not later. So I think we are going to see some, if not negative, some drag on same-store sales in the multifamily sector due to that one building.

再次感謝您提出另一個很棒的問題。因此，Mike 和我認為在 2017 年稍晚會影響同店銷售的異常狀況有 2 項。其中一項在多戶住宅。如同我們提過的，在市中心這裡的 Cosmopolitan Apartments 正前方，我們正面臨相當顯著的施工干擾。本季入住率下滑，目前落在 80% 中段。我們預期這種拖累會持續，至少要等到我們能把新一期工程的施工收尾，這要到秋季，甚至可能更晚。所以我認為，由於那一棟建物的因素，我們將在多戶住宅部門看到一些（即便不至於為負）對同店銷售的拖累。

In the office space, there's another quirk in that we took 30,000 feet of tenants out of this same-store sales pot, if you will, and turn them into 40,000 square feet of tenants in a building that is not in same-store sales. When your whole office portfolio is only 900,000 square feet, then you're going to have a meaningful drop, we think, in same-store sales. It's not in office -- in subsequent quarters. So obviously, these are not things that -- these are things that are positive for us long term, so we're not too concerned about them. But it's going to look a little weird in numbers for the next couple of quarters.

在辦公空間方面，還有另一個小插曲：我們把 30,000 平方英尺的租戶從同店銷售的「池子」裡移出（如果你願意這麼說），並把他們轉到一棟不納入同店銷售的建物中，成為 40,000 平方英尺的租戶。當你的整體辦公資產組合只有 900,000 平方英尺時，我們認為同店銷售將會出現明顯下滑。這不是在辦公——在後續幾個季度。所以很明顯，這些並不是——這些事情從長期來看對我們是正面的，因此我們不會太擔心。但接下來幾個季度在數字上看起來會有點怪。

Mike just got through saying that we had our 11th consecutive quarter of same-store sales increase. We've got a bet here as to whether it's the next quarter or the following quarter that that trend starts to reverse because of what I just said.

Mike 剛剛說我們同店銷售已連續第 11 個季度成長。我們這裡還打賭，是下一季還是再下一季，這個趨勢會因為我剛才說的原因開始反轉。

Okay. And then one quick one for Mike. Are you waiting until '18 to adopt new acquisition cost rules? Looks like you still had a moderate amount of acquisition costs that were expensed in the first quarter here.

好的。然後給 Mike 一個快速問題。你們要等到 2018 年才採用新的收購成本規則嗎？看起來你們在第一季仍有一筆中等規模的收購成本被費用化。

No. We adopted that in the fourth quarter. We just -- this past quarter, where I think it was like $40,000 of miscellaneous things that came through that we just ran through there without capitalizing that cost.

不。我們在第四季就採用了。只是——在上一季，我想大概是 40,000 美元的一些雜項費用進來，我們就直接列在那裡，沒有把那筆成本資本化。

Our next question comes from Craig Kucera with Wunderlich Securities.

下一個問題來自 Wunderlich Securities 的 Craig Kucera。

I know in the past you were discussing how the cost of swapping some of your debt had moved around quite a bit and become a lot more expensive. Can you give us an update on how things are looking today? And as you look towards the fourth quarter when you've got another maturity, how you're thinking about managing that and managing your variable rate debt going forward?

我知道過去你們曾討論過，將部分債務做交換（swap）的成本波動很大，而且變得貴了許多。你能更新一下目前的情況嗎？另外，展望第四季你們還有一筆到期，你們如何思考管理那筆到期，以及未來如何管理你們的浮動利率債務？

Good morning, Craig. Yes. We've seen the cap pricing kind of go up and down, depending on what's the latest news. So we'll continue to monitor that and buy the caps when we see the right times. You know, the cap we just bought last -- this past quarter, we thought we got good pricing on that one as well. The other thing we're going to evaluate is we've kept the LIBOR caps at 150, is whether or not, depending on pricing, as LIBOR goes up, do we move those caps up to 175 or so. We have one cap that we've gotten another year plus on, that caps LIBOR at 1%. It looks like we'll be in the money on that one. I've been joking around with Lou, I said we should have bought $200 million worth of that one at the time that we bought that 1% cap. It cost us like $140,000 for that one.

早安，Craig。是的。我們看到利率上限（cap）的定價會隨著最新消息而上下波動。因此我們會持續觀察，並在我們認為時機合適時買入上限。你知道，我們在上一季剛買的那個上限，我們也認為價格不錯。另外一件我們會評估的事是：我們一直把 LIBOR 上限設在 150（基點），但隨著 LIBOR 上升、且視定價而定，我們是否要把上限提高到 175 左右。我們有一個上限還有一年多的期間，把 LIBOR 封頂在 1%。看起來那個會變成「價內」。我一直跟 Lou 開玩笑說，我說我們當時買那個 1% 上限時，應該買 2 億美元的名目金額。那個只花了我們大概 140,000 美元。

I'll add another note here. As long as the long end of the curve stays flat like it's been, I think you'll see us put a couple of projects away on permanent debt as well. So as Mike had said in the past, we look at the debt holistically and no matter how well hedged or capped we are, we want to keep a nice mix of long-term debt as well.

我再補充一點。只要殖利率曲線的長端像目前這樣維持平坦，我想你會看到我們也會把幾個專案用永久性融資（permanent debt）做結案。所以如同 Mike 過去所說，我們會以整體角度看待債務；不論我們的避險或上限做得多好，我們也希望維持一個良好的長期債務組合配置。

Our next question comes from Laura Engel with Stonekey Capital Partners.

下一個問題來自 Stonekey Capital Partners 的 Laura Engel。

I guess first just a follow-up. I didn't hear -- did you comment on the timing of those new, I think you said 4 potential leases for Town Center, as far as we're well into this next quarter? Can you give us a little bit of an idea on that as far as how long it'll take to wrap those up?

我想先追問一下。我沒聽到——你們是否有評論那些新的、我想你說是 4 個 Town Center 潛在租約的時程？畢竟我們已經進入下一季一段時間了。你能否稍微說明一下，大概還需要多久才能把那些租約敲定？

Sure. 2 of them actually have been signed. The other 2 we expect to be signed during the month of May. But -- the but here is that while those numbers will obviously go into our quarter occupancy numbers, we don't expect really any impact in 2017 to speak of due to the refit of the space. So this is all kind of geared towards really hitting the ground running in 2018 with a significant amount of tenants being -- kicking in towards the end of the year.

當然。其中 2 個其實已經簽了。另外 2 個我們預期會在 5 月簽署。但是——這裡的「但是」是，雖然這些數字顯然會反映在我們本季的入住率數字中，但由於空間需要重新裝修（refit），我們預期 2017 年基本上不會有什麼可說的影響。所以這一切主要是為了在 2018 年真正快速起跑，並在年底前後有相當多租戶開始貢獻。

Okay. And then you gave some detail discussing the construction company business and the increased guidance. The cost savings that you've mentioned this quarter, is that something you expect to see going forward as far as margins on that business?

好的。然後你們在談到營造公司業務與上修指引時提供了一些細節。你們本季提到的成本節省，是否是你們預期未來也會持續看到、並反映在該業務利潤率上的事情？

That one is a bit of an outlier because of the size of it. As Mike said, it's a -- it was $180 million contract. And so you had some fairly outsized savings. I believe our share was in the high 6 figures. Typically, they're not that large. But -- and we really don't -- or we aren't forecasting another large contract with any kind of meaningful savings for the rest of the year. So that's a bit of an outlier. It's obviously taken our earnings to new heights in the construction company. That company continues to hit on all cylinders. And it seems like every time we increase expectations, those guys increase them again for us.

那一筆因為規模而有點偏離常態。如 Mike 所說，那是一份——1.8 億美元的合約。因此你會看到一些相對超出常態的節省。我相信我們分到的份額是 60 多萬美元的高位數。通常不會那麼大。但是——而且我們其實不——或是說我們並未預測今年剩餘期間還會有另一份大型合約帶來任何具實質意義的節省。所以那算是比較特例。它顯然把我們營造公司的獲利推到新高。那家公司持續火力全開。而且似乎每次我們提高預期，那些人又會再替我們把預期提高一次。

Right. No. I agree. And then last thing, I was just going to comment. Decatur, Georgia, right down the road, a super cool town, so that's exciting news. And I'm sure y'all will do well there.

對。不。我同意。然後最後一點，我只是想評論一下。喬治亞州的 Decatur，就在路不遠處，是個超酷的小鎮，所以這是令人興奮的消息。我相信你們在那裡會做得很好。

We're very excited about Decatur. And as I mentioned, the relationship with that developer is -- an extremely competent developer that we've known of for several years and have known for several years as well as a great name in the space that we want to be in. So we're hoping to have further announcements in that regard.

我們對 Decatur 感到非常興奮。而且如我提到的，與那位開發商的關係——他是一位極其稱職的開發商，我們認識、也關注他好幾年了；同時他在我們想進入的領域也有很好的名聲。所以我們希望在這方面能有進一步的公告。

There are no further questions at this time. I would like to turn the call back over to Lou Haddad for closing remarks.

目前沒有其他問題。我想把電話交回給 Lou Haddad 作結語。

Thank you, everybody, for your interest in the company and your time that you've spent with us this morning. We look forward to updating you on more exciting activities and results over the course of the year. Take care.

謝謝各位對本公司的關注，以及今天早上撥冗與我們共度的時間。我們期待在今年接下來的時間裡，向各位更新更多令人振奮的活動與成果。保重。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

謝謝。今天的電話會議到此結束。您現在可以掛線。感謝您的參與，祝您有美好的一天。