AH Realty Trust, Inc (AHRT) 2017 Q4 法說會逐字稿

Good morning, and welcome to Armada Hoffler's Fourth Quarter 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, February 6, 2018. I will now turn the conference over to Michael O'Hara, Chief Financial Officer at Armada Hoffler. Please go ahead, sir.

早安，歡迎參加 Armada Hoffler 2017 年第四季財報電話會議。(接線員指示) 提醒各位，本次電話會議將於今日（2018 年 2 月 6 日，星期二）錄音。現在我將把會議交給 Armada Hoffler 財務長 Michael O'Hara。先生，請開始。

Good morning, and thank you for joining Armada Hoffler's Fourth Quarter 2017 Earnings Conference Call and Webcast. On the call this morning, in addition to myself, are Lou Haddad, CEO, and Eric Smith, Chief Investment Officer, who will be available for questions.

早安，感謝各位參加 Armada Hoffler 2017 年第四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 Lou Haddad 與投資長 Eric Smith，兩位稍後將可回答提問。

The press release announcing our fourth quarter earnings, along with our quarterly supplemental package and our 2018 guidance presentation were distributed this morning. A replay of this call will be available shortly after the conclusion of the call through March 6, 2018. The numbers to access the replay are provided in the earnings press release. For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, February 6, 2018, and will not be updated subsequent to this initial earnings call.

本公司今早已發布公布第四季盈餘的新聞稿，以及季度補充資料包與 2018 年財測指引簡報。本次電話會議的重播將於會議結束後不久提供，並可收聽至 2018 年 3 月 6 日。重播的撥入號碼已載於盈餘新聞稿中。對於收聽本簡報重播的聽眾，我們提醒：本次發言係截至今日（2018 年 2 月 6 日）之資訊，且在本次初次財報電話會議後將不再更新。

During this call, we will make forward-looking statements, including statements related to the future performance of our portfolio, our development pipeline, impact of acquisitions and dispositions, our construction business, our portfolio performance and financing activities as well as comments on our guidance and 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 forward-looking statement disclosure in our press release this morning and the risk factors disclosed in documents we have filed with or furnished to the SEC.

在本次電話會議中，我們將作出前瞻性陳述，包括與我們投資組合未來表現、開發管線、收購與處分之影響、營造事業、投資組合績效與融資活動相關之陳述，以及對我們指引與展望的評論。提醒聽眾注意，這些陳述受若干風險與不確定性影響，其中許多難以預測且通常超出我們控制範圍。這些風險與不確定性可能導致實際結果與我們目前預期有重大差異；我們建議聽眾查閱今早新聞稿中的前瞻性陳述揭露，以及我們向 SEC 申報或提供之文件中所揭露的風險因素。

We will also discuss certain non-GAAP financial measures, including but not limited to FFO and normalized FFO. Definitions of these non-GAAP measures as well as reconciliations to the most comparable GAAP measures, are included in the quarterly supplemental package which is available on our website, 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 指標之定義，以及與最可比 GAAP 指標之調節表，均收錄於可在我們網站 armadahoffler.com 取得的季度補充資料包中。

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

現在我將把電話會議交給我們的執行長 Lou Haddad。Lou？

Thanks, Mike. Good morning, everyone, and thank you for joining us today. This morning, we reported fourth quarter results of $0.23 of normalized FFO per share, which was in line with our expectations. We finished the full year at $0.99 per share which was the midpoint of our previous guidance. We also issued our guidance for 2018 which will be the focus for most of my commentary.

謝謝你，Mike。各位早安，感謝今天加入我們。今早我們公布第四季每股標準化 FFO 為 0.23 美元，符合我們的預期。全年每股為 0.99 美元，落在我們先前指引的中位數。我們也發布了 2018 年指引，這將是我多數評論的重點。

To briefly summarize 2017, I'd like to refer back to what we said on this call one year ago. At that time, we informed investors that we anticipated a year of strengthening our balance sheet and executing on our large development pipeline. Without any development deliveries slated for 2017, we stated that earnings would be more or less flat compared to the previous year with significant NAV and earnings growth expected to occur beginning in the latter half of 2018 through the delivery and eventual stabilization of several development projects.

簡要回顧 2017 年，我想回到一年前在這通電話會議上我們所說的內容。當時我們告訴投資人，我們預期將有一年用於強化資產負債表並執行我們龐大的開發管線。由於 2017 年沒有任何開發案預計交付，我們表示盈餘相較前一年大致持平；而顯著的 NAV 與盈餘成長預期將自 2018 年下半年開始，透過數個開發專案的交付並最終達到穩定營運而實現。

I am pleased to report that we have met all of our goals for last year and the pipeline is on track to deliver the value that we anticipated. As you can see on Page 3 of our Guidance Presentation, we anticipate 2018 normalized FFO per share between $1.00 and $1.05. The midpoint of this range is a measurable increase over last year's results even though development deliveries are not expected to provide any appreciable impact to 2018 earnings.

我很高興報告，我們已達成去年所有目標，且開發管線正按計畫推進，將交付我們所預期的價值。如各位在我們《指引簡報》第 3 頁所見，我們預期 2018 年每股標準化 FFO 介於 1.00 至 1.05 美元。即使開發案交付預期不會對 2018 年盈餘帶來任何顯著影響，該區間中位數仍較去年結果有可衡量的提升。

We expect another strong year for our company in all aspects of our business. Portfolio leasing and accretive acquisitions, combined with another stellar year from our construction company, will continue to deliver value to our shareholders. Let's look at these factors in that same order.

我們預期公司在各項業務面向都將再迎來強勁的一年。投資組合租賃與具增益效果的收購，加上我們營造公司再度表現亮眼的一年，將持續為股東創造價值。我們就依同樣順序來看這些因素。

Starting with our existing portfolio, and referring to Page 4 of the Guidance Presentation, our portfolio NOI is projected to rise incrementally, exclusive of 2018 acquisitions. This growth is expected to come predominantly from additional town center leasing across all product types. Our expectation is that with construction disruption ending by midyear, multifamily occupancy will increase. Office vacancies caused by relocation and expansion of existing tenants are well on the way to being backfilled. We also anticipate filling the few pockets of retail vacancy within the project.

先從既有投資組合開始，並參考《指引簡報》第 4 頁，我們預估投資組合 NOI（不含 2018 年收購）將逐步上升。此成長預期主要來自城鎮中心在各產品類型上的新增租賃。我們預期隨著施工干擾於年中結束，多戶住宅入住率將提高。因既有租戶搬遷與擴張所造成的辦公室空置，正逐步被新租戶回補。我們也預期填補該專案中零售空置的少數缺口。

The other 2/3 of the portfolio remains leased on average in the high 90s.

投資組合其餘 2/3 的平均出租率仍維持在 90% 後段的高水準。

On the acquisitions front, we have adhered to the basic tenants of real estate for nearly 40 years. Prime locations, proven operators and diligent monitoring of sales traffic and demographics. As I mentioned on our last call, the current retail environment has yielded a host of opportunity to acquire such properties, particularly in the grocery sector. Over the last few months, we evaluated numerous assets and identified a number of these centers that not only meet our investment standards, but as importantly, help us solidify relationships with quality operators and development partners to fuel our primary growth vehicle, our development operation.

在收購方面，我們近 40 年來一直遵循不動產的基本原則。優質地段、經驗證的營運商，以及對銷售人流與人口結構的嚴謹監測。如我在上次電話會議所提到的，目前的零售環境帶來大量機會可收購此類資產，尤其是在雜貨（超市）領域。過去幾個月，我們評估了眾多資產並辨識出若干中心，不僅符合我們的投資標準，更重要的是，有助於我們鞏固與優質營運商及開發夥伴的關係，以推動我們主要的成長引擎——開發業務。

What you see on Page 5 of the Guidance Presentation are the completed and pending acquisitions resulting from this effort. S you know, we invest in superior locations in our geographical footprint including high quality addresses in secondary and tertiary markets that most public REITs dismiss. These are predominantly off-market opportunities and some involve the issuance of OP units, a trademark of our acquisition strategy. For example, last week we closed on the acquisition of Parkway Centre, a newly constructed retail center in Moultrie, Georgia anchored by Publix. We acquired Parkway Centre in an off-market transaction in which this developer, Kara Moore Development, took back half of their equity in the form of OP units. We look forward to potential future opportunities to work with this new partner. We have also agreed to terms on the acquisition of two newly constructed Lowes Foods anchored centers in South Carolina. For those of you not familiar with Lowes Foods, they are a North Carolina-based, family-owned and operated enterprise who have been doing business for over 60 years. Lowes Foods is part of a $2 billion organization. With a new store concept comparable to Publix and Harris Teeter, Lowes Foods operates nearly 100 full service supermarkets, primarily located in the Carolina. Both were off-market transactions and one involves our strategic development partner, SGA Collins, who will be taking back a meaningful portion of their equity in the form of OP units. We anticipate closing on both acquisitions in the late first quarter or early second quarter of this year.

各位在《指引簡報》第 5 頁看到的是此一努力所帶來的已完成與待完成收購案。如各位所知，我們投資於地理版圖內的優質地段，包括許多公募 REIT 往往忽略的次級與第三級市場中的高品質地址。這些多為場外（off-market）機會，其中部分涉及發行 OP units，這是我們收購策略的標誌。例如，上週我們完成收購 Parkway Centre，這是一座位於喬治亞州 Moultrie、由 Publix 作為主力店的新建零售中心。我們以場外交易方式收購 Parkway Centre，該開發商 Kara Moore Development 以 OP units 形式收回其一半股權。我們期待未來有機會與這位新夥伴合作。我們也已就收購南卡羅來納州兩座新建、以 Lowes Foods 為主力店的中心達成條件。若各位不熟悉 Lowes Foods，它是一家總部位於北卡羅來納州、家族擁有並經營的企業，營運已逾 60 年。Lowes Foods 隸屬於一家年規模 20 億美元的組織。憑藉可與 Publix 與 Harris Teeter 相比的新店型概念，Lowes Foods 經營近 100 家全服務超市，主要位於卡羅來納地區。兩筆皆為場外交易，其中一筆涉及我們的策略性開發夥伴 SGA Collins，其將以 OP units 形式收回其股權中相當可觀的一部分。我們預期將於今年第一季末或第二季初完成兩筆收購交割。

Last month we closed on the acquisition of Indian Lakes, a retail center in Virginia Beach anchored by Harris Teeter and Wawa. Indian Lakes is a property we know quite well. We originally developed and built this center in 2008. And when the opportunity to acquire the asset at an attractive cap rate presented itself, we acted on it. The 4 acquisitions total $66 million at a blended 6.8% cap rate. But as I mentioned previously, these transactions include additional leasing upside as well as positioning us for further engagements with these strategic developers and operators.

上個月我們完成收購 Indian Lakes，這是一座位於維吉尼亞海灘、以 Harris Teeter 與 Wawa 為主力店的零售中心。Indian Lakes 是我們非常熟悉的資產。我們最初於 2008 年開發並興建了這座中心。當以具吸引力的資本化率（cap rate）收購該資產的機會出現時，我們便採取行動。這 4 項收購合計 6,600 萬美元，加權平均資本化率為 6.8%。但如我先前所提，這些交易除包含額外的租賃上行空間外，也讓我們得以與這些策略性開發商與營運商進一步合作。

Again, as seen on Page 5 of our Guidance Presentation, these properties will temporarily increase the retail percentage of our NOI. As the far-right chart shows, traditional retail is projected to be well under 40% of NOI with the delivery and stabilization of the current pipeline. Please note that in all of these charts, a separate portion of our portfolio is labeled as entertainment and mixed-use retail. This category primarily consists of restaurants, entertainment venues, professional office, higher educational facilities and some boutique shops. We believe the tenants represented here are of a materially different nature than traditional retail.

再次，如同我們在《指引簡報》第 5 頁所示，這些資產將暫時提高我們 NOI 中零售的占比。如最右側圖表所示，隨著目前開發管線的交付與穩定，傳統零售預計將遠低於 NOI 的 40%。請注意，在所有這些圖表中，我們投資組合中另有一部分被標示為娛樂及複合式零售。此類別主要由餐廳、娛樂場館、專業辦公、高等教育設施以及部分精品店構成。我們認為，此處所代表的租戶性質與傳統零售在實質上有顯著差異。

Now turning to construction, our previous expectation was that after 2 years of record profits for this sector, construction would return to its historical norm of $4 million to $5 million of gross profit. This was based on the expected decrease in contract volume anticipated in 2018. I'm pleased to report that due to our unique cross selling platform, we expect to be able to maintain the high end of our historical range despite this projected decrease in third part contract revenue. As I mentioned last quarter, our construction group has a long history of third party work in the industrial and distribution sector. This experience began back in the early 1990s and continues today as we will be building a $23 million 220,000 square foot distribution center for a Fortune 50 company. This new building is the result of a consolidation of 3 older facilities. In the negotiations with the client, we offered a menu of fee construction and development, build to suit purchase, or a long-term lease, giving this client optionality that is only afforded with our integrated business model.

接著談到營造業務，我們先前的預期是，在該部門經歷連續兩年創紀錄的獲利後，營造毛利將回到歷史常態的 400 萬至 500 萬美元。此預期係基於 2018 年合約量預計下降。我很高興報告，憑藉我們獨特的交叉銷售平台，儘管第三方合約收入預計下降，我們仍預期能維持在歷史區間的高端水準。如我在上一季所提，我們的營造團隊在工業與物流配送領域承接第三方工程有悠久歷史。這段經驗始於 1990 年代初期，並延續至今；我們將為一家《財富》50 強公司興建一座 2,300 萬美元、22 萬平方英尺的配送中心。這棟新建物是整併 3 座較舊設施的成果。在與客戶的協商中，我們提供了費用型施工與開發、量身訂做（build-to-suit）購買，或長期租賃等方案，透過我們整合式商業模式所能提供的彈性，讓客戶擁有選擇權。

The client selected the long-term lease arrangement. As we are not long-term holders of industrial real estate, we expect this project will be designed, built, occupied and sold within 2018, all at the taxable REIT subsidiary level. Due to the favorable rates contained in the new tax law, it is practical for us to monetize this value creation in this manner. Therefore, profit recognition is expected to be significantly higher than just the typical fees we would have earned under third party construction contract.

客戶選擇了長期租賃安排。由於我們並非工業不動產的長期持有者，我們預期該專案將在 2018 年內完成設計、施工、進駐並出售，且全部在應稅 REIT 子公司（TRS）層級進行。受惠於新稅法中的優惠稅率，以此方式將價值創造變現對我們而言是可行的。因此，預期可認列的利潤將顯著高於我們在第三方營造合約下通常僅能取得的費用收入。

As you know, our construction group receives this type of build to suit opportunity on a fairly regular basis. Since our IPO, we have executed on 4 facilities of this nature, 2 state office buildings, the Newport News Police Precinct, and the Oceaneering Building. The disposition of these buildings, other than the police precinct, resulted in our acquiring other properties under a 1031 Exchange. And while tax free exchanges will still be a part of our strategy, lower tax rates will enable us to alternatively handle these engagements at the TRS level as well where taxes will be paid and the net proceeds can be used for balance sheet purposes.

如各位所知，我們的營造團隊相當常態性地獲得此類量身訂做（build-to-suit）的機會。自我們 IPO 以來，我們已執行 4 座此類設施、2 棟州政府辦公大樓、Newport News 警察分局，以及 Oceaneering 大樓。除警察分局外，這些建物的處分使我們得以透過 1031 交換取得其他資產。雖然免稅交換仍將是我們策略的一部分，但較低的稅率也使我們能改以 TRS 層級處理這些案子，在該層級繳納稅款後，淨收益可用於資產負債表用途。

Turning now to the development business and Page 8 of the Guidance Presentation, you'll see here that the pipeline is now at approximately $484 million worth of investment. Given our typical wholesale to retail spread of 20%, we estimate that once these assets are stabilized, NAV will increase over $1.00 per share. You will notice that we have already added to the already robust pipeline previously reported. The market at Mill Creek in Mount Pleasant, South Carolina is our first development with Lowes Foods in a grocery anchored shopping center. This center, along with our expected acquisition of the Lowes Foods centers previously discussed, are the first steps in what we hope to be a long-term relationship with both this first-rate regional grocer as well as our newest development partner, the Adams Property Group.

接著談開發業務與《指引簡報》第 8 頁，您可看到目前開發管線的投資規模約為 4.84 億美元。以我們典型的批發到零售價差 20% 計算，我們估計這些資產一旦穩定，NAV 將增加每股超過 1.00 美元。您會注意到，我們已在先前所報告的強勁管線基礎上再度新增專案。位於南卡羅來納州 Mount Pleasant 的 Mill Creek 市集，是我們首個以 Lowes Foods 為主力店的生鮮超市型（grocery-anchored）購物中心開發案。該中心，加上我們預期收購先前討論過的 Lowes Foods 中心，將是我們希望與這家一流區域型雜貨商，以及我們最新的開發合作夥伴 Adams Property Group 建立長期合作關係的第一步。

Construction on all the other projects in our development pipeline remain on track. Furthermore, we'll be breaking ground on the build to suit office building for Huntington Ingalls Industries at Brooks Crossing later this month.

我們開發管線中其他所有專案的施工進度仍按計畫推進。此外，我們將於本月稍晚在 Brooks Crossing 為 Huntington Ingalls Industries 的量身訂做辦公大樓動工。

On the leasing front, I'm excited to announce that WeWork has agreed to lease over 60,000 square feet at One City Center. WeWork, combined with Duke University, brings preleasing on the office component of the project to approximately 90%. As a result, we expect to deliver One City Center at or near stabilization later this year. We previously announced that Pottery Barn and Williams Sonoma will be anchoring the retail portions of Phase 6 of Town Center. We delivered the Annapolis Junction project and as of today, there are over 130 signed leases at proforma rents. We are very pleased with the initial leasing demand.

在租賃方面，我很高興宣布，WeWork 已同意在 One City Center 承租超過 60,000 平方英尺。WeWork 加上杜克大學（Duke University），使該專案辦公部分的預租率提升至約 90%。因此，我們預期 One City Center 將於今年稍晚交付，並達到或接近穩定狀態。我們先前已宣布，Pottery Barn 與 Williams Sonoma 將擔任 Town Center 第 6 期零售部分的主力店。我們已交付 Annapolis Junction 專案，截至今日，已有超過 130 份租約以預估（pro forma）租金水準完成簽署。我們對初期的租賃需求感到非常滿意。

Assembly of our next development pipeline is well underway and we look forward to discussing those projects with you later this year. At this time, I'll turn the call over Mike to discuss our fourth quarter results and 2018 guidance in detail. Mike?

我們下一階段開發管線的整備工作正積極推進，我們期待在今年稍晚與各位討論這些專案。接下來，我將把電話會議交給 Mike，請他詳細說明我們第四季業績與 2018 年指引。Mike？

Thanks, Lou. Today I want to cover the highlights of the quarter, the full year, thoughts on our balance sheet, and our 2018 guidance. This morning we reported FFO of $0.24 per share and normalized FFO of $0.23 per share for the fourth quarter. For the full year, both FFO and normalized FFO were $0.99 per share. This compared to FFO of $0.96 and normalized FFO of $1.01 in 2016. As we have discussed, 2017 was a year of execution on the development pipeline and positioning the business for future growth. We were successful on both accounts in 2017.

謝謝，Lou。今天我想說明本季重點、全年表現、對我們資產負債表的看法，以及 2018 年指引。今天早上我們公布第四季每股 FFO 為 0.24 美元，標準化 FFO（normalized FFO）為每股 0.23 美元。全年而言，FFO 與標準化 FFO 均為每股 0.99 美元。相較之下，2016 年 FFO 為 0.96 美元，標準化 FFO 為 1.01 美元。如我們先前所討論，2017 年是執行開發管線並為未來成長布局的一年。我們在 2017 年於這兩方面都取得成功。

2017 was another good year of total shareholder return for AHH. Our 2017 total return was 13% versus 5$ for the RMS. Since our IPO in May of 2013, total shareholder return through December 31 was 78% versus 34% for the RMS. We are obviously pleased with these returns and are grateful for the trust our shareholders have placed in the management team.

2017 年對 AHH 而言也是股東總報酬表現良好的一年。我們 2017 年總報酬為 13%，相較 RMS 為 5%。自 2013 年 5 月 IPO 以來，截至 12 月 31 日的股東總報酬為 78%，相較 RMS 為 34%。我們對這些報酬表現當然感到滿意，也感謝股東對管理團隊的信任。

During the year, our equity market cap increased by $164 million, reaching a peak equity market cap of $1 billion and a total enterprise value in excess of $1.5 billion in December. The dividend was well covered with an 83% AFFO payout ratio for 2017.

在這一年中，我們的股權市值增加了 1.64 億美元，並於 12 月達到 10 億美元的股權市值高點，企業總價值超過 15 億美元。2017 年股利以 83% 的 AFFO 配息率獲得良好覆蓋。

Same-store NOI was negative this quarter and for 2017 as expected. As we have discussed the past couple of quarters, this metric was impacted from the ongoing construction of Town Center Phase 6 as well as by the relocation and expansion of two significant office tenants to 4525 Main Street, which is not in the same-store NOI calculation. We have made progress in leasing this vacated space with approximately 50% released at this time. To illustrate what is truly happening with our portfolio, look at our occupancy and releasing spreads. Our core operating portfolio occupancy this quarter was 94%, with office at 90%, retail at 97%, and multi-family at 93%. Additionally, our releasing spreads were strong for 2017, with GAAP positive 5.2% and cash positive 1.8%.

如預期，本季與 2017 年的同店 NOI 皆為負成長。如我們過去幾季所討論，該指標受到 Town Center 第 6 期持續施工的影響，也受到兩家重要辦公租戶搬遷並擴租至 4525 Main Street 的影響；該資產不納入同店 NOI 計算。我們在出租這些騰空面積方面已取得進展，目前約有 50% 已重新出租。為了呈現我們投資組合的真實狀況，請看我們的出租率與續租價差。本季我們核心營運投資組合的出租率為 94%，其中辦公為 90%、零售為 97%、多戶住宅為 93%。此外，2017 年的續租價差表現強勁，GAAP 口徑為正 5.2%，現金口徑為正 1.8%。

On the construction front we reported segment gross profit in the fourth quarter of $600,000 on revenue of $33 million. For the full year, we reported segment gross profit of $7.4 million on revenue of $193 million. This is one of the best years in the history of our construction group. These numbers do not include the construction volume on our development projects of $52 million which is eliminated under GAAP. Construction volume on our development projects will also be material in 2018, approaching $100 million. At the end of the fourth quarter, the company had a third-party construction backlog of $49 million.

在營造業務方面，我們第四季在營收3,300萬美元下，報告分部毛利為60萬美元。全年而言，我們在營收1.93億美元下，報告分部毛利為740萬美元。這是我們營造事業群歷史上表現最好的年度之一。這些數字不包含我們開發專案中5,200萬美元的施工量，該部分依GAAP會被抵銷（沖銷）。我們開發專案的施工量在2018年也將相當可觀，接近1億美元。截至第四季末，公司第三方營造在手訂單（backlog）為4,900萬美元。

Now turning to our balance sheet, we continue to take actions to enhance the flexibility of our balance sheet and work on loan maturities. As we have been discussing, maintaining a strong balance sheet as a private company was instrumental in being successful for 34 years prior to going public in 2013. With the management team being the largest shareholder at 17%, this approach has not changed. With our current leverage metrics well positioned, we did not issue any equity in the fourth quarter, but intend on filing a new ATM program this month, along with the 10K. We expect to issue equity under the new ATM program this year if market conditions are favorable. If not we have other options including selling noncore assets. These proceeds would be used for further deleveraging. Additionally, we've seen a lot of development opportunities and want the availability of capital for those projects.

接著談到資產負債表，我們持續採取行動以提升資產負債表的彈性，並處理貸款到期事宜。如同我們一直在討論的，作為一家私人公司，維持強健的資產負債表是我們在2013年上市前34年能夠成功的關鍵。管理團隊以17%持股為最大股東，這項做法並未改變。在我們目前槓桿指標處於良好位置的情況下，我們第四季未發行任何股權，但計畫在本月隨同10-K一併申報新的ATM計畫。若市場狀況有利，我們預期今年將在新的ATM計畫下發行股權。若不利，我們也有其他選項，包括出售非核心資產。這些所得將用於進一步去槓桿。此外，我們也看到許多開發機會，並希望為這些專案保有資金可用性。

We continue to work on loan maturities as well. The credit facility revolver was scheduled to mature in early 2019. During the fourth quarter, we closed on a new credit facility to stay ahead of the maturity. The new facility is $300 million, with an accordion to $450 million. This facility includes a $150 million revolver and a $150 million term loan. The revolver matures in 4 years, and the term loan matures in 5.

我們也持續處理貸款到期事宜。信貸融資額度的循環貸款原定於2019年初到期。在第四季期間，我們完成了一項新的信貸融資，以提前因應到期。新融資額度為3億美元，並可透過增額條款（accordion）提高至4.5億美元。該融資包含1.5億美元的循環額度與1.5億美元的定期貸款。循環額度到期為4年，定期貸款到期為5年。

In January, the Sandbridge Harris Teeters Center loan was extended for 5 years at LIBOR plus 175. At the end of the year, we had total outstanding debt of $523 million, including $66 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 hedge our interest rate exposure. At quarter-end, 100% of our debt was either fixed or hedged. Again, last quarter we purchased a two-year, $50 million interest rate cap at 1.5%.

1月，Sandbridge Harris Teeters Center貸款以LIBOR加175個基點的利率展延5年。截至年底，我們未償還總負債為5.23億美元，其中包括在1.5億美元循環信貸額度下已動用的6,600萬美元。我們持續評估對較高利率的曝險，並尋找適當時機對利率曝險進行避險。截至季末，我們100%的債務皆為固定利率或已避險。同樣地，上季我們購買了一筆兩年期、5,000萬美元、上限利率為1.5%的利率上限（interest rate cap）。

Today we introduced 2018 guidance of $1.00 to $1.05 per share. As Lou discussed, this guidance includes the expected sale of the distribution center by the TRS as we view this as a construction project that evolved from our cross-selling client platform. We intend to sell this asset before it is placed in service and include it in normalized FFO. We included the expected profit from this sale in both the construction company gross profit and normalized FFO guidance. This is illustrated on Page 6 of the Guidance Presentation. The guidance for this part of our business has a wider than normal range due to the variability of exit cap rates. This is another example of being an opportunistic real estate company.

今天我們提出2018年每股1.00至1.05美元的指引。如Lou所述，該指引包含TRS預期出售配送中心，因為我們將其視為一個由我們交叉銷售客戶平台演變而來的營造專案。我們打算在該資產投入使用前出售，並將其納入常態化FFO。我們已將該出售預期獲利同時納入營造公司毛利與常態化FFO指引。此點於《指引簡報》第6頁有所說明。由於退出資本化率（exit cap rates）的變動性，這部分業務的指引區間較一般更寬。這也是我們作為機會型不動產公司的另一個例子。

This transaction will have an impact on debt to EBITDA in 2018 as our balance sheet will carry the debt with no corresponding EBITDA. Because of the short-term nature of this project and associated debt, we will not issue any equity for this project.

由於我們的資產負債表將承擔該債務但沒有相對應的EBITDA，這筆交易將在2018年影響負債對EBITDA比率。鑑於此專案及其相關債務屬短期性質，我們不會為此專案發行任何股權。

Now I'd like to go through details of the 2018 guidance. Please turn to Page 3 of the Presentation. First, starting with our assumptions, the acquisition of the 4 retail centers, 2 of which closed in the first quarter, pending due diligence we expect to close on the other 2 late in the first quarter or early in the second quarter, raising $55 million through the ATM program, the sale of the distribution center in the fourth quarter. Since the FFO will be recognized at the time of sale, fourth quarter normalized FFO will be substantially higher than the previous 3 quarter. Interests expense is calculated based on the forward LIBOR curve which forecasts rates rising to 2.2% by year end. This guidance of $1.00 to $1.05 per share is predicated on the following.

接下來我想說明2018年指引的細節。請翻到簡報第3頁。首先從假設開始：收購4個零售中心，其中2個已於第一季完成交割；其餘2個在完成盡職調查後，預期於第一季末或第二季初完成交割；透過ATM計畫募資5,500萬美元；以及於第四季出售配送中心。由於FFO將在出售時認列，第四季常態化FFO將顯著高於前三季。利息費用係依據遠期LIBOR曲線計算，該曲線預測利率於年底上升至2.2%。每股1.00至1.05美元的指引係基於以下前提。

Total NOI in the $80.7 million to $81.4 million range, third-party construction gross profit in the $4.4 million to $7.5 million range, general administrative expenses in the $10.7 million to $11 million range, interest income from our mezzanine financing program in the $9 million to $9.5 million range. As of yearend, the aggregate loan balance of these mezzanine loans was $83 million, interest expense in the $19.7 million to $20.3 million range, and 64.5 million weighted average shares outstanding.

總NOI介於8,070萬至8,140萬美元；第三方營造毛利介於440萬至750萬美元；一般及行政費用介於1,070萬至1,100萬美元；來自夾層融資計畫的利息收入介於900萬至950萬美元。截至年底，這些夾層貸款的合計貸款餘額為8,300萬美元；利息費用介於1,970萬至2,030萬美元；加權平均流通股數為6,450萬股。

Now I'll turn the call back to Lou.

現在我把電話交回給Lou。

Thanks, Mike. we remain extremely bullish on the performance of our company. With an accretive pipeline nearing delivery and a solid balance sheet, we believe we are poised for significant growth over the next few years. When combining these factors with a well-covered dividend that has increased annually and still yields in excess of 5%, we feel that we are delivering exceptional value to our shareholders. We will be discussing the dividend at our quarterly Board of Director's meeting on February 22 and we will issue a press release shortly thereafter. 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，Mike。我們對公司表現仍然極度看多。在具增益性的專案管線即將交付、且資產負債表穩健的情況下，我們相信未來幾年將具備顯著成長的有利條件。再加上股利覆蓋充足、且每年提高並仍有超過5%的殖利率，我們認為正為股東創造卓越價值。我們將在2月22日的季度董事會會議上討論股利，並將在會後不久發布新聞稿。感謝各位今天早上的時間以及對Armada Hoffler的關注。接線生，我們想開始問答環節。

(Operator Instructions) David Rodgers, Baird & Co.

(接線生指示) David Rodgers，Baird & Co.。

Good morning, guys, and thanks for the 2018 Guidance Presentation. I think that was really helpful. I wanted to quickly ask about the office space that's left at, I guess the Town Center overall. Each asset is kind of somewhere hovering around or just above 90%, so it seems like a bunch of small pockets. But it sounds like you guys have some pretty good activity. So Lou, any additional color you could add there?

各位早安，感謝提供2018年指引簡報。我覺得那真的很有幫助。我想快速問一下，我猜是在Town Center整體，剩餘的辦公空間情況。每個資產大概都在90%附近或略高一些，所以看起來是一些零星的小區塊。但聽起來你們有相當不錯的活動量。所以Lou，你能否再補充一些細節？

Sure. So the space that we vacated with those 2 tenants that relocated to 4525 has been filed with I want to say it's 5 smaller tenants are now going to be occupying about half of that vacancy. We've seen some really good activity here of late, Dave. I guess with the uptick in the economy, we're seeing more people actively looking. I feel really good about filling the rest of that space. As you said, it's all pretty much in small pockets, so it's kind of slow going. But we're looking forward to getting back into the mid-90s where we've traditionally been on office in Town Center.

當然。我們因那兩位租戶搬到4525而空出的空間已經出租了；我想是有5個較小的租戶將進駐，合計將承租約一半的空置面積。最近我們在這裡看到非常不錯的活動，Dave。我想隨著經濟回升，我們看到更多人積極在找空間。我對把剩餘空間租出去很有信心。如你所說，基本上都是一些小區塊，所以進度會比較慢。但我們期待把Town Center的辦公出租率回到我們傳統上的95%左右。

Then shifting gears to residential and some of the developments coming up, you're within the year now of Annapolis Junction and Point Street completing. How are market rents looking on those projects? You've felt pretty good in the past, I'm just curious on kind of any update on those in terms of how those are starting to play out.

接著把焦點轉到住宅，以及一些即將到來的進展，你們距離 Annapolis Junction 和 Point Street 完工現在已在一年之內了。這些專案的市場租金目前看起來如何？你們過去一直感覺相當不錯，我只是想了解一下，這些專案在租金表現上目前的最新狀況，以及開始如何發展。

Dave, that's a great question. I want to be cautious with the answer. Both of these properties, the rents, the leases that have been signed are predominantly above our proforma rents. I try not to get overly excited about that until we get towards the end of the initial lease up rather than the beginning. But certainly, really encouraged about the results thus far.

Dave，這是個很好的問題。我想在回答上保持謹慎。這兩個物業目前已簽的租金與租約，大多數都高於我們的預估（proforma）租金。不過在初期出租（lease-up）接近尾聲之前，而不是在剛開始時，我會盡量不讓自己過度興奮。但可以肯定的是，到目前為止的結果確實令人非常鼓舞。

Great. And then maybe last for me, can you talk a little bit more about the retail environment? Obviously some more acquisitions here in the first quarter and in the guidance for the remainder of the quarter. But curious on the yields that you're seeing here, how you're viewing these purchases relative to maybe what you could replace these assets for. Any additional thoughts around on the retail landscape?

很好。那最後一個問題，你能再多談一點零售環境嗎？顯然第一季這裡又有一些收購，而且在本季剩餘期間的指引中也有提到。我想了解你們目前看到的收益率（yields）如何，以及你們如何看待這些購買相對於若要重置／重建這些資產的成本。對零售版圖還有沒有其他想法？

Sure. I'm going to let Eric answer this question more specifically, but just generally, as I said in my opening comments, we continue to operate as a real estate company, looking for high quality real estate with high-quality partners and high-quality operators. That hasn't changed for going on 40 years and I don't expect it to change any time soon. What we're seeing in our retail properties is very high demand and very high lease up of the few pockets of space. I think we're at like 97% now on the retail occupancy. The yield on these particular properties, we hope to get into the low 7s by some lease up and also by some potential dispositions, but I'll let Eric explain that more fully.

當然。我會讓 Eric 更具體地回答這個問題，但就整體而言，正如我在開場評論中所說，我們持續以一家房地產公司來運作，尋找高品質的不動產、與高品質的合作夥伴以及高品質的營運商合作。這點在將近 40 年來都沒有改變，我也不預期短期內會改變。我們在零售物業看到的是非常高的需求，以及少數空置空間的出租率非常高。我想我們零售的出租率現在大概在 97%。這些特定物業的收益率，我們希望透過一些出租提升，以及可能的處分，能做到 7% 出頭（low 7s），但我會讓 Eric 更完整地說明。

Sure. Thanks, Dave, and thanks, Lou. I'll be brief in my comments, but I'll touch on each of these very quickly because I think anecdotally a couple pithy comments will highlight exactly what we've said, how we focus on the real estate then the yields, including the upside opportunity. And lastly, the opportunity to expand our relationships. So Indian Lakes is obviously something we were extremely family with, having developed it. And while at first blush it appears to be going at cap rate on NOI in the low 7s, there's an opportunity to peel a high value Wawa off at a very attractive cap rate and get that into the high 7s approaching 8. And it is real estate we obviously know well here locally. We have a shadow anchored grocery store asset right next door that's primarily been 100% leased, still a very strong submarket. Now you move down to the Publix acquisition in Moultrie, Georgia, and again, going in cap rate I the mid 6s, but with the small shop space that we have yet to rent, we expect that to get into the 7 range as well. We spent a lot of time diligence this asset. This doesn't arguably have the same 1-3-5 mile demographics given that you have a county with a 50,000 population, but when you actually go down and put boots on the ground, you find out that the population was turning their backs on the local off brand markets like Harvey's and Oxley's which are not -- they're low-cost providers and not competitors at all, and driving anywhere from an hour to an hour and a half roundtrip to Tipton, Thomasville, Valdosta, etc., to shop at the Publix in surrounding cities. And so we feel very good as we're the only site Publix wanted to be in, willing to take in this city. And so we feel really good about the real estate. You touch on the other two, and we're talking about strong demographics in the Lexington, South Carolina area and Greenville, South Carolina just outside the beltloop there in Greer. And we're very pleased with those as well, with some of the similar upside opportunities we discussed. So when you look across those acquisitions, again, through the lenses and the metrics that Lou outlined, you're talking about an opportunity with one of our strategic partners we've talked about a lot with SJ Collins and the acquisition of the Lexington asset from them and the taking back of OP units. The development in Mount Pleasant with the Adams Group, the acquisition of the Publix in Georgia with the Teramore Group, so all long-term local partners that we plan on doing more business with. And then you're talking about long-term relationships with Lowes Foods and Publix that we feel are very strong operators. Those might be a little less well known, part of the $2 billion Alex Lee conglomerate, but we spend a lot of time with their corporate team at their headquarters and touring their new concepts and it's every bit a true company of Publix, Harris Teeter and Whole Foods given their organic and local store concept, given many of their unique in-store concepts as well as their high service levels. And so we feel very comfortable about those partnership relationships and those operators. And obviously the real estate itself.

好的。謝謝你，Dave，也謝謝你，Lou。我會簡短說明，但我會很快地逐一帶到，因為我認為用幾個軼事性的精簡重點，就能凸顯我們所說的：我們如何聚焦在不動產本身、再來是收益率（包含上行機會），以及最後擴大合作關係的機會。所以 Indian Lakes 顯然是我們非常熟悉的案子，因為我們曾經開發過。乍看之下，它以淨營運收入（NOI）計的資本化率（cap rate）大約在 7% 出頭的低段，但我們有機會把一個高價值的 Wawa 以非常具吸引力的 cap rate 剝離出去，讓整體提升到 7% 後段、接近 8%。而且這是我們在本地非常熟悉的不動產。我們隔壁就有一個以超市為影子主力店（shadow anchored）的資產，基本上一直維持 100% 出租，該次級市場仍然非常強勁。接著談到喬治亞州 Moultrie 的 Publix 收購案，同樣地，進場 cap rate 在 6% 中段，但由於我們還有一些尚未出租的小店面空間，我們預期也能把它提升到 7% 左右。我們在這個資產上做了大量的盡職調查。這個市場可能不像一般所說具備同樣的 1-3-5 英里人口統計條件，因為那是一個人口 5 萬的郡；但當你實際下去走訪、實地踏勘後，你會發現當地人口其實已經不再去本地的非品牌超市（像 Harvey's 和 Oxley's）購物——那些是低成本供應商，根本談不上競爭對手——反而會開車往返一到一個半小時，到 Tipton、Thomasville、Valdosta 等周邊城市的 Publix 採買。因此我們感覺非常好，因為我們是 Publix 想進入、也願意在這個城市落點的唯一地點。所以我們對這個不動產非常有信心。至於另外兩個案子，我們談的是南卡羅來納州 Lexington 區域與南卡羅來納州 Greenville、在 Greer 外環（beltloop）外側一帶的強勁人口結構。我們對這些也非常滿意，並且具備一些我們剛才討論過的類似上行機會。因此當你用 Lou 所概述的視角與指標來看這些收購案，你會看到：我們與一位已多次提到的策略夥伴 SJ Collins 的合作機會——從他們手上收購 Lexington 的資產，並回收 OP 單位（OP units）。在 Mount Pleasant 與 Adams Group 的開發案、以及與 Teramore Group 在喬治亞州收購 Publix 的案子——這些都是我們計畫持續合作的長期在地夥伴。此外，你也在談與 Lowes Foods 與 Publix 的長期關係，我們認為他們都是非常強的營運商。Lowes Foods 可能比較不為人熟知，它是 20 億美元規模的 Alex Lee 集團的一部分，但我們花了很多時間與他們總部的企業團隊交流、參觀他們的新概念店；以他們的有機與在地門市概念、許多獨特的店內概念，以及高服務水準來看，他們完全可與 Publix、Harris Teeter 與 Whole Foods 相提並論。因此我們對這些合作關係與營運商都非常放心。當然也包括不動產本身。

Jim Lykins, D.A. Davidson.

Jim Lykins，D.A. Davidson。

First of all, the 2 acquisitions, for the one in Georgia, I didn't see in the press release the square footage for that one. I'm wondering if you can first of all give us that and then any other color on those 2 transactions. Occupancy, how much you think you might be able to push rents, and if there may be a value add component to either one of those.

首先，這兩筆收購案中，喬治亞州那一筆我在新聞稿裡沒有看到其建築面積（square footage）。我想先請你們提供那個數字，然後也請再補充一些關於這兩筆交易的細節。包括出租率、你們認為租金能提高多少，以及其中任何一筆是否可能有增值（value add）成分。

Absolutely. Again, I'll let Eric take that.

當然可以。同樣地，我會讓 Eric 來回答。

Sure. In similar order that I just mentioned, let's start with Indian Lakes. We're going in at 95% occupied on a 71,000 square foot center, so you have a little over 3,000 square feet vacant. So there's an upside on leasing there. Like we said, we also feel good about that retail corridor for over time for there to be some upward releasing rates. And then finally, the Wawa I mentioned that we could spinoff to get that from the low 7s to approaching an 8-cap rate, so that upside is across those 3 metrics. And then on the Parkway Centre in Moultrie, Georgia, a little over 61,000 square feet. We're going in there with just under 5,000 square feet vacant across four bays and we feel really good about filling those which is why we were happy to go in at a mid-6 cap rate with a goal of getting it over 7. Like I said, that market, in addition to folks doing the hour to hour and a half roundtrip to other Publix in the few neighboring towns I mentioned, what you have here is a new retail corridor to the northeast of town as you come in on route 319. And this is where you have all the players of note on the retail side in the market. And this is at Main and Main in that market. So to the extent that there is small shop demand in that market, it will be at this intersection in this Publix center. So we feel really good not only about filling that space, but over time having the premier asset in that market, being able to push rates as those leases roll over in the future.

好的。依照我剛才提到的順序，我們先從 Indian Lakes 開始。我們進場時，這個 71,000 平方英尺的中心出租率為 95%，所以大約有 3,000 多平方英尺是空置的。因此在出租上有上行空間。如同我們所說，我們也看好那條零售走廊隨時間推進，續租／重新出租（re-leasing）租金有上調的空間。最後，我提到的那個 Wawa，我們可以把它拆分出去，讓整體從 7% 出頭的低段提升到接近 8% 的 cap rate，因此上行來自這三個指標。至於喬治亞州 Moultrie 的 Parkway Centre，面積略高於 61,000 平方英尺。我們進場時有略低於 5,000 平方英尺空置，分布在四個店面單元（bays），我們對把它們填滿很有信心，這也是為什麼我們願意以 6% 中段的 cap rate 進場，目標是把它拉升到 7% 以上。正如我所說，該市場除了我提到的民眾會開車往返一到一個半小時去鄰近幾個城鎮的 Publix 之外，這裡還有一條新的零售走廊，位於城鎮東北側，沿著 319 號公路進城的方向。這裡聚集了該市場零售端所有重要的品牌與業者。而這個案子位在該市場的「Main and Main」黃金地段。因此，只要該市場存在小店面需求，就會集中在這個路口、這個 Publix 中心。所以我們不僅對填滿空間很有信心，長期來看，作為該市場的頂級資產，當未來租約到期輪替時，我們也有能力推升租金水準。

that's very helpful. Also, could you just talk about who if anyone may be on your watch list right now at all? So what you're seeing with leasing trends so far into Q1 on the retail side?

這非常有幫助。另外，你能否談談目前如果有的話，誰在你們的觀察名單上？以及到目前為止第一季在零售端的租賃趨勢你們看到了什麼？

Again, on the retail side, Jim, it's been very robust. There's just a very small amount of vacancy. We're seeing good tenant rollover and leasing spreads, as Mike had mentioned, have been healthy. In terms of our watch list, I've mentioned before, we still own 4 centers that have Bed, Bath & Beyond in them. We're somewhat concerned about them as a company, however, the volumes that they're doing in our stores are skewing to the high end of their average store. So we'll see. We feel really good about if in the eventuality that those actually right go out, of being able to release those. As we've mentioned before, we're continually looking at this portfolio for where we think peak value has been reached. I've mentioned that we still have 3 Food Lines in the portfolio as well as Buy-Low. We feel really good about the locations and the sales. But as I've mentioned before, I could see us divesting ourselves of those over the next couple of years. Certainly, no reason to dump them if you will, particularly in the current environment, but I think long term, you'll see that rotation out of those few stores.

再說一次，在零售端，Jim，表現一直非常強勁。空置率只有非常小的一部分。我們看到良好的租戶續租情況與租賃價差（如 Mike 提到的）也維持健康。至於我們的觀察名單，我之前提過，我們仍然擁有 4 個有 Bed, Bath & Beyond 的購物中心。我們對他們作為一家公司有些擔憂，不過，他們在我們店點的銷售量偏向其平均店點的高端。所以我們再觀察看看。我們對於萬一那些店真的退出時，能夠重新出租這些鋪位非常有信心。如同我們之前提過的，我們持續檢視這個投資組合，找出我們認為已達到峰值價值的部分。我也提過，我們的投資組合裡仍有 3 家 Food Lines，以及 Buy-Low。我們對其地點與銷售表現都很有信心。但如我之前所說，我可以想像我們在未來幾年內會逐步處分這些資產。當然，尤其在目前的環境下，沒有必要急著把它們賣掉，但我認為長期來看，你會看到這幾家店逐步輪替退出。

Robert Stevenson, Janney Montgomery Scott.

Robert Stevenson，Janney Montgomery Scott。

Good morning, guys. The Lowes Foods-anchored stores that you're going to build or buy, those are actually Lowes stores and not their Just Save concept, right?

早安，各位。你們要興建或收購、以 Lowes Foods 為主力店的那些店，實際上是 Lowes 的門店，而不是他們的 Just Save 概念店，對吧？

That is correct. And I would add to that, they're not only the Lowes Foods, but they are all the Lowes Foods new concept, which, for those on the phone who might be familiar with Lowes to start with, there is a notable difference between the older store concept and their new store concept. They spent a lot of time demoing the market and working with their customers. And like we said, Id don't know that we would be buyers of their older concept stores, but we're very big fans of the new concept stores.

沒錯。我再補充一下，不僅是 Lowes Foods，而且全部都是 Lowes Foods 的新概念店；對於電話上的各位，如果本來就熟悉 Lowes，你會知道舊店型概念與新店型概念之間有明顯差異。他們花了很多時間在市場上做測試，並與顧客一起調整。而且如我們所說，我不確定我們會不會買他們舊概念的店，但我們非常看好新概念店。

For the ones that are operating currently, what are they doing sales wise and how does that compare to a Publix or a Kroger or Harris Teeter in a similar market?

就目前正在營運的那些店而言，它們的銷售表現如何？與在相似市場中的 Publix、Kroger 或 Harris Teeter 相比如何？

Sure. The information that we have on -- let's see, let's start with the Greer/Greenville, South Carolina location. They've been open about a year and their sales per square foot are approaching $400 a square foot. The Lexington store has not been open but for a few months, but we expect that, based on early trends, to be even better. And based on our research and diligent, we believe that they are at par with if not in excess of the competitive set I mentioned when they are located right across the street, down the street, etc., in the same submarket.

當然。我們掌握的資訊——我們先從南卡羅來納州 Greer/Greenville 的據點開始。它開業約一年，每平方英尺銷售額接近 400 美元。Lexington 那家店開業才幾個月，但根據早期趨勢，我們預期表現會更好。根據我們的研究與盡職調查，我們相信當它們與我提到的競爭對手店點位於同一個子市場、甚至就在街對面或同一條路上時，其表現至少相當，甚至更勝一籌。

That's great. Thanks. And then Lou, with the Duke project now 90% leased or preleased, at what point do you guys start talking to the school and start kicking off whatever the next one is, Two City Center, or I don't know how the numbers work down there, but the next project down there if this one is already 90% preleased at this point?

太好了。謝謝。接著 Lou，Duke 專案現在已租出或預租 90%，你們什麼時候會開始跟學校談、並啟動下一個專案？是 Two City Center 還是——我不確定那邊的數字怎麼算——但如果這個專案此時已經 90% 預租了，那下一個專案你們什麼時候開始推進？

Great question, Rob. And the answer to that question is, we've been in talks with Duke for the last several months about anchoring the next high-rise. My expectation is that you're going to see some really exciting announcements over the next several months of large, mixed-use, public/private type developments that are going to stock a new pipeline for us that's going to add the same kind of value that we believe the current one is zeroing in on

很好的問題，Rob。答案是：過去幾個月我們一直在與 Duke 討論，讓他們作為下一棟高樓的主力承租方。我預期接下來幾個月你會看到一些非常令人振奮的公告，內容會是大型、複合用途、偏公私協力型的開發案，將為我們補充新的案源管線，並帶來我們相信目前這個專案正在逐步實現的同類價值。

Mike talked about alternatives to the $55 million of ATM issuance that you guys have in your guidance at this point if the stock price stayed low or went lower. You talked about having some OP units not only in deals that you've already closed, but deals that are going to close. At 13 and change, how do you feel about including OP units at a price like that versus just selling an asset or something like that or using cash at this point in the cycle?

Mike 談到，如果股價維持低檔或更低，對於你們在指引中提到的 5,500 萬美元 ATM 發行，你們有哪些替代方案。你也提到你們有一些 OP units，不僅在已完成的交易中，也在即將完成的交易中。在 13 美元出頭的價位下，你怎麼看在這樣的價格納入 OP units，與其改為賣資產、或在這個週期點使用現金等方式相比？

That's a great question and it's something we have to continually evaluate. We've got a number of properties coming online that, like I said, we've developed these properties in order to won them long-term. However, again, as the largest shareholder, that's not at any cost. We think we're adding a tremendous amount of NAV with this pipeline and if it looks like the stock isn't trading the way we would like it, then we're not afraid to reap some of that value and book the cash. As you know, this is not a static game and I didn't get overly excited when the stock hit $16, I'm not going to get overly excited when it hits $13. But we need to operate our business with an eye towards what's going on in the market simply for the availability of capital and use the best sources that we can.

這是個很好的問題，也是我們必須持續評估的事情。我們有多個物業即將投入營運；如我所說，我們開發這些物業是為了長期持有。不過，再次強調，作為最大股東，這並不是不計成本。我們認為這條開發管線正在為我們增加大量的 NAV（淨資產價值）；如果股價的交易表現不如我們期望，我們也不害怕收割其中一部分價值、把現金入帳。如你所知，這不是一個靜態的遊戲；股價到 16 美元時我不會過度興奮，跌到 13 美元我也不會過度興奮。但我們必須在經營業務時關注市場狀況，特別是資本可得性，並使用我們能取得的最佳資金來源。

I'll add to Lou's comment very quickly which is both the OP units that were issued for the transaction that closed as well as the pending transaction in both cases, those OP units were transacted at a price higher than the current stock price after this material selloff the last few days.

我很快補充 Lou 的評論：不論是已完成交易所發行的 OP units，或是待完成交易中的 OP units，在這兩種情況下，OP units 的成交價格都高於過去幾天這波大幅拋售後的目前股價。

That's great. And then Lou, given that comment though, you've got on, I forget, Page 5 of the Guidance, you've got the pie chart showing current portfolio breakdown and then what it is with the stabilized portfolio, development portfolio. If you guys were to sell stuff out of there, I mean obviously the multifamily stuff is probably the most liquid. How comfortable would you wind up being having retail go from 49% to 55%, 58%, even 60% if you wind up harvesting gains from other asset classes for some period of time in the portfolio? Is there an upward bound where you start saying I've got to start selling retail as well as other asset classes when your portfolio mix gets there do you think?

很好。不過 Lou，基於你剛才的說法，你們在指引的——我忘了——第 5 頁，有一個圓餅圖顯示目前投資組合的組成，以及在穩定後投資組合、開發投資組合下的組成。如果你們要賣出其中一些資產，顯然多戶住宅可能是流動性最高的。若你們在一段時間內從其他資產類別收割獲利，導致零售占比從 49% 升到 55%、58% 甚至 60%，你們會有多舒適？是否有一個上限，到了那個投資組合比例時，你會開始說我也必須開始賣零售，而不只是賣其他資產類別？

We don't want to let it get too far out of whack. But remember, this is a long-term game. We feel really good about the retail that we own, the mixed-use retail is always going to be there, the grocery-anchored stores are always going to be there. Although we've continued to look at recycling those things. We're comfortable with the real estate that we own. Investors pay us to be real estate professionals, not market reactors. When we've got stores or centers that are 97% or 100% leased and sales are going up, we're going to feel really comfortable about holding that real estate. These are not big boxes, these are not department stores, they're not malls. They are very solid real estate assets that we intend to have for the long-haul. That said, we don't want to turn into a retail company and as such, like we've said before, the majority of this pipeline as well as the pipeline that's forming, takes us away from retail centers and more to mixed use office/residential.

我們不希望讓比例失衡到太嚴重。但請記住，這是一場長期的遊戲。我們對我們持有的零售資產非常有信心；複合用途中的零售會一直存在，超市主力店的物業也會一直存在。雖然我們也持續在評估資產汰換與再投資。我們對我們所持有的不動產很有信心。投資人付錢給我們，是要我們當不動產專業人士，而不是市場的被動反應者。當我們的店鋪或購物中心出租率達到 97% 或 100%，且銷售還在成長時，我們會非常安心地持有這些不動產。這些不是大型盒式賣場，不是百貨公司，也不是購物中心（mall）。它們是非常穩健的不動產資產，我們打算長期持有。話雖如此，我們不想變成一家純零售公司；因此，如同我們之前說過的，這條開發管線以及正在形成的管線，大多會讓我們從零售中心轉向更多複合用途的辦公／住宅。

Okay, and then last one for Mike so that he doesn't feel too lonely, why were the same store expenses in the apartment segment running so high in 2017 at 5.5%? Was there anything in particular, property taxes or something else really drive that number up? Or was it just a variety of expenses?

好的，最後一題問 Mike，免得他覺得太孤單：為什麼 2017 年公寓部門的同店費用率會這麼高，達到 5.5%？是否有什麼特別因素，例如房產稅或其他項目，真的把這個數字推高？還是只是各種費用的綜合影響？

It was in 3 areas. First were utilities and real estate taxes. And then the third is repairs and maintenance, so at the Cosmo especially as it's staging and putting money into carpet refresh and those kinds of things.

主要來自三個方面。第一是公用事業費用與不動產稅。第三是修繕與維護，尤其是在 Cosmo，因為在做佈置（staging），並投入資金進行地毯翻新等這類工作。

James Feldman, Bank of America, Merrill Lynch.

James Feldman，美國銀行美林（Bank of America, Merrill Lynch）。

Thanks, and good morning. This is Kim Hong on for Jamie Feldman. It seems like office and multifamily same store for NOI had meaningful drags in 2017. Can you discuss your expectations for same store NOI in these segments and the office leasing spreads included in your 2018 guidance?

謝謝，早安。我是 Kim Hong，代 Jamie Feldman 提問。看起來 2017 年辦公與多戶住宅的同店 NOI 有明顯拖累。能否談談你們對這些部門同店 NOI 的預期，以及你們 2018 年指引中包含的辦公租賃價差（leasing spreads）？

On same store NOI, we're expecting to see a rebound in the middle of the year, especially with the effects on the office. The releasing has started to happen, so that will start hitting the pool when those leases are there as well as the 4525 Main Street will be in the same store NOI pool come third quarter of next year. So office obviously is going to be rebounding. Multifamily, we are expecting the same. We are expecting to see the occupancy begin to climb back at Cosmo. And on retail, we are expecting as lightly growth in same store NOI like we've had the past couple of years on the retail.

關於同店 NOI，我們預期年中會看到回升，尤其是辦公的影響。續租（releasing）已經開始發生，因此當那些租約落地後就會開始反映在同店池中；此外，4525 Main Street 也會在明年第三季納入同店 NOI 池。所以辦公顯然會回升。多戶住宅方面，我們也有同樣預期。我們預期 Cosmo 的入住率會開始回升。至於零售，我們預期同店 NOI 會像過去幾年一樣呈現溫和成長。

I know you just spoke about the retail acquisitions, but more broadly speaking, what type of grocery anchor tenants are you looking for? Currently we're seeing a lot of winners and losers in the grocery anchored space. So what are the factors that you look for in these types of tenants and how do you think these grocery anchors will be successful over time?

我知道你剛談到零售收購，但更廣泛來說，你們在尋找什麼類型的雜貨主力店（grocery anchor）租戶？目前我們看到以雜貨主力店為核心的業態有很多贏家與輸家。那麼你們在評估這類租戶時會看哪些因素？以及你認為這些雜貨主力店長期來看會如何成功？

Sure. We've got longstanding relationships with Kroger, Harris Teeter, and we're forming one with Whole Foods. And now we're working hard on these Lowes opportunities. For us, it's long-term proven operations in the business. As well as looking at competitive set that's out there. I had mentioned Food Lion. We don't think there's anything wrong with Food Lion and with Delhaize Credit behind them, they're not going anywhere. But we are seeing a lot of pressure at the low end, particularly from the Europeans. And that's why we're not thinking that those stores that we have of theirs would see a lot of growth. For us, it's a combination of several factors. It's familiarity with an operator that's proven over and over and over. It's a location that we feel good about irrespective of the operator as evidenced by the sales both in the grocery as well as in the small shops. It's getting a development partner who can bring us further opportunities. That's the lifeblood of our business. All those factors need to come together and of course we're looking for accretion as well. But I want to make sure that everybody understands on the phone, this company is not set up to grow meaningfully though strict acquisitions. For us, it's creating that value in the wholesale and retail spread that's going to fuel our growth. And also, the same lens is applied to acquisitions. Simply buying something at a 7 cap because our cost of capital is in the low 6s, isn't where we want to go. But that same acquisition, when it contains an opportunity to bring another partner onboard through OP units as well as further development opportunities, that moves the needle far enough for us to act.

當然。我們與 Kroger、Harris Teeter 有長期合作關係，也正在與 Whole Foods 建立合作。現在我們也在積極推進這些 Lowes 的機會。對我們而言，重點是該業者在這個行業中長期、經驗證的營運能力。同時也會看市場上的競爭組合（competitive set）。我提過 Food Lion。我們不認為 Food Lion 有什麼問題，而且背後有 Delhaize 的信用支持，他們不會消失。但我們確實看到低端市場承受很大壓力，特別是來自歐洲業者。這也是為什麼我們不認為我們持有的他們那些門店會有很大的成長。對我們來說，是多項因素的組合。包括對一個一再被證明的營運商的熟悉度。也包括我們對地點本身的信心，不論是哪個營運商；這可從雜貨本身以及小店鋪的銷售表現得到印證。還包括找到能帶來更多機會的開發合作夥伴。那是我們業務的命脈。所有這些因素都需要同時具備，當然我們也會看是否具備增益性（accretion）。但我想讓電話上的各位都清楚，這家公司並不是靠純粹收購就能實現顯著成長的架構。對我們而言，是在批發與零售利差中創造價值，來推動我們的成長。同樣的視角也適用於收購。僅僅因為我們的資金成本在 6% 出頭，就去買一個 7% 資本化率（cap）的資產，並不是我們想走的方向。但如果同一筆收購包含透過 OP 單位引入另一位合作夥伴的機會，以及進一步的開發機會，那就足以讓我們採取行動、產生實質影響。

Thank you for that color. Regarding the WeWork lease in 4Q, what type of impact do you think WeWork will have on One City Center. And ass a landlord, are you open to co-working platforms broadly or specifically attracted to WeWork?

謝謝你提供這些背景。關於第四季的 WeWork 租約，你認為 WeWork 對 One City Center 會帶來什麼影響？以及作為房東，你們是否願意更廣泛地接受共享辦公平台，還是特別偏好 WeWork？

You know, it's something that the market is embracing across a number of different names. I'm not sure that we're ready to embrace it. I believe WeWorks is far and away the leader and the best capitalized and as far as we can see, the most successful model. It's going to bring a tremendous amount of energy to the building so we're really excited about them picking our building as their base of operators in Durham and I think it validates what we've been thinking all along about downtown Durham. Tremendous activity. They are also looking at a couple of other of our facilities around the portfolio. I suspect that we're going to have further announcements with this particular tenant.

你知道，市場正在擁抱多個不同品牌的這類模式。我不確定我們是否已準備好全面擁抱它。我認為 WeWork 無疑是領導者、資本最雄厚，而且就我們所見，是最成功的模式。他們會為大樓帶來巨大的活力，所以我們非常興奮他們選擇我們的大樓作為在達勒姆（Durham）的營運據點，我也認為這驗證了我們一直以來對達勒姆市中心的看法。活動非常熱絡。他們也在評估我們投資組合中另外幾個設施。我猜我們之後還會就這位租戶發布更多消息。

The last one for me is, your next debt to EBITDA was 6.6 at year end for 2017. Wondering what your comfort range is and what the leverage will look like here in 2018. And once all the developments are in process to deliver?

我最後一題是：你們 2017 年底的淨負債對 EBITDA（net debt to EBITDA）是 6.6 倍。想請教你們覺得舒適的區間是多少，以及 2018 年槓桿水準會是什麼樣子。以及當所有開發案都在進行、並陸續交付之後？

Debt to EBITDA claimed in the fourth quarter, mainly affecting the 41 the construction company's gross profit dropped quite a bit from the previous quarters. We have stated we are comfortable with the core debt to core EBITDA in the mid 6x-something range which is where we certainly focus and try to keep it in that range. For 2018, it will be a little higher during the year than our typical range that it has been in the last 12 months because of the distribution center that we talked about where we're going to be carrying the debt and the associate EBITDA with that. But it's not going to be until the fourth quarter. Long range, that certainly want to be is in that 6.5x range. Looking out at 2019, that's where we want to have it. What's going to happen between now and then? This is not a static balance sheet. As Lou was saying, we're looking at lot of development projects right now, there's a lot of activity, so we're working on the 2019 plan as it comes together.

第四季的負債對 EBITDA 上升，主要是因為 41（建築公司）的毛利較前幾季下滑不少。我們先前已表示，我們對核心負債對核心 EBITDA（core debt to core EBITDA）在 6 倍中段左右的區間感到舒適；這也是我們確實聚焦並努力維持的範圍。2018 年期間，該比率會比過去 12 個月我們的典型區間略高一些，原因是我們提到的配送中心案，我們將承擔相關負債以及對應的 EBITDA。但要到第四季才會反映。長期來看，我們當然希望落在約 6.5 倍的水準。展望 2019 年，那是我們希望達到的水準。那麼從現在到那時會發生什麼？這不是一個靜態的資產負債表。正如 Lou 所說，我們目前在看很多開發專案，活動很多，所以我們會隨著情況逐步成形來制定 2019 年計畫。

Craig Kucera, B. Riley FBR.

Craig Kucera，B. Riley FBR。

Mike, I appreciate your commentary on the balance sheet. You've got about $145 million of interest rate caps rolling off here in the next couple of quarters. Do you anticipate just rolling those or extending those again? Or are you thinking about maybe taking a different tact in regard to managing your floating rate debt?

Mike，我很感謝你對資產負債表的評論。你們大約有 1.45 億美元的利率上限（interest rate caps）會在接下來幾個季度到期。你們預期會直接續作或再次延長嗎？或者在管理浮動利率負債方面，你們是否在考慮採取不同的策略？

We're going to look at two things. Certainly, we're going to stick with caps. I mean for us, it's a good way to have a pool of assets that don't have, that have repayable debt, so it gives of flexibility for disposition and keeping the value there. Or on encumbering the asset for the credit facility or going though, for a credit rating. Obviously we won't be buying caps anymore at 150. LIBOT at 150 would probably be 2% or something, but we'll certainly look at the pricing. And second part is, starting to look at some more fixed rate debt. We've got a couple of properties here that are coming up that will be good to start looking at long-term debt. Obviously one of them being the JHU project of which now at 100% leased he leasing for the next school year has been very strong. So now is a good opportunity to take a look at that one.

我們會看兩件事。當然，我們會繼續使用利率上限（caps）。我的意思是，對我們而言，這是一個很好的方式來保有一個資產池，這些資產沒有、或是具有可償還的債務，因此在處分上更有彈性，也能把價值留在那裡。或者在為信貸額度提供擔保、或是為了取得信用評等而對資產設定負擔（encumber）時。顯然，我們不會再以150的水準去買caps了。LIBOT在150的話可能是2%之類，但我們肯定會看價格。第二部分是，開始多看一些固定利率債務。我們這裡有幾個物業即將到期，會很適合開始評估長期債務。其中一個顯然是JHU專案；目前已100%出租，下一學年的租賃表現非常強勁。所以現在是個很好的時機來看看那一個。

Got it. Going to the multifamily side of the portfolio, there was some slippage in occupancy I think quarter-over-quarter. Particularly at Liberty. I s that property such that we kind of have to wait until the next school year starts before we'll see a recovery? Or are there other things that you can do there?

了解。談到投資組合中的多戶住宅（multifamily）部分，我想入住率（occupancy）在季度對季度之間有些下滑。特別是在Liberty。那個物業是不是我們得等到下一學年開始才會看到回升？還是你們在那邊還能做其他事情？

That's a great question. I'm going to be brutally frank about Liberty. We're not pleased this where that sits right now. It shouldn't be as cyclical as it's behaving. Not with the rolling admittance that they have at the apprentice school there with Huntington Ingalls, Inc. We don't see any reason why this property shouldn't be in the 90s and we're giving it a lot of attention as we speak and we're working with Huntington Ingalls to raise the profile. There appears to be some good news in the offing with another ship that's going to come in for a major overhaul and be here for an extended period of time as multiyear. But I do want to stress that we are not pleased with where it is and I don't really see the reason why it's there. It's going to get a lot of attention and we're going to get that performing better, is one of our goals for this year.

這是個很好的問題。我會非常坦白地談Liberty。我們對它目前的狀況不滿意。它不應該像現在這樣呈現高度週期性。尤其是那裡與Huntington Ingalls, Inc.的學徒學校採取滾動式招生。我們看不出這個物業為什麼不應該在90%多的入住率；我們正在給它很多關注，並且正與Huntington Ingalls合作提高能見度。看起來有一些好消息即將到來：另一艘船將進港進行大型翻修，並會在此停留較長時間，可能是多年期。但我確實要強調，我們對它目前的狀況不滿意，而且我也不太明白為什麼會是這樣。它會得到很多關注，而讓它表現更好，是我們今年的目標之一。

One more for me. Just going from a modeling perspective, you mentioned that you have a couple of deals where you priced OP units. Can you give us specifically how many units were issued and what the price was?

我再問最後一個。從建模（modeling）的角度，你提到你們有幾筆交易為OP單位（OP units）定價。你能否具體說明發行了多少單位，以及價格是多少？

I don't remember specifically the number of units on the [Alexander] deal. It was a couple million dollars' worth or will be a couple million dollars' worth on that one. And that was when we cut that deal with our partner, that's in the low 14 handle range, 14, 15 or so. And on the one that closed down in Georgia, I believe those went off just slightly sub 14.

我不記得[ALEXANDER]那筆交易具體發行了多少單位。那筆大概是幾百萬美元的規模，或將會是幾百萬美元的規模。那是在我們和合作夥伴敲定交易時做的，價格大概在14出頭，約14、15左右。至於在喬治亞州完成交割的那一筆，我相信價格略低於14。

John Guinee, Stifel.

John Guinee，Stifel。

Two questions. Exactly on a gross and an after-tax basis, is the build to suit you're planning on putting into normalized or core FFO for the industrial build to suit, on a dollar and on an events basis, FFO basis. And then second, more big picture, the big deal in retail these days is co-tenancy clauses, occupancy clauses, favorite nations clauses. What do you have to give, both in attracting national and regional tenants, and then also, how are you underwriting co-tenancy occupancy and favorite nation clauses when you're buying these food-anchored centers?

兩個問題。就總額與稅後口徑而言，你們規劃的工業用量身訂做（build-to-suit）案，是否會納入標準化或核心FFO（normalized or core FFO）？以金額以及事件（events）口徑、FFO口徑來看。第二個，從更宏觀的角度，近來零售領域的大議題是共同承租（co-tenancy）條款、入住率（occupancy）條款、最惠國（favorite nations）條款。在吸引全國性與區域性租戶時，你們需要讓出什麼條件？另外，當你們收購這些以生鮮超市為主力店（food-anchored）的商場時，你們如何在承作（underwriting）時評估共同承租、入住率與最惠國條款？

All right, John. Good morning by the way. Let me take those one at a time. On the distribution center, the way we're looking at it is this. Had this Fortune 50 client selected us to simply design, build them a distribution center, our fees would have been in the $1.2 million range. We would have charged them about 6% for construction and development. That's the way it would have headed. In the long-term lease arrangement, we will basically get that obviously as well as another couple of million dollars' worth of profit dependent upon what that ultimate exit cap rate is. So it's a 10-year triple net lease with obviously an extremely strong company. But there is a lot of variability right now out there in the emphasis. Our expectation is for an extra couple of million dollars. That obviously can go up. I don't believe it's going to go down because of the nature of this credit. But again, that's the reason for the wide range. With regard to what's going on with co-tenancies, there's a couple of different categories. John, you and I have talked about our mixed-use retail before. In terms of these boutique retailers in our mixed use, of which they don't represent a tremendous amount of that mixed us, but what is there is important. And we're talking about the Anthropologies, the Lulu Lemons and Williams Sonoma and all that. There are very -- let me back up for a second. In order for a secondary market like Virginia Beach to attract those types of tenants, where they're basically going to do one store in the entire market, you are not competing with the center down the street. You are competing with other secondary markets. So an Anthropology might have a handful of opportunities for stores in secondary cities and there might be 30 secondary cities after that tenant. So as I've stressed before, these are not money making propositions for us in and of themselves. They demand a tremendous amount of tenant improvement and they don't pay a very high rate. What they do, do is enable you to get the other tenants in that mixed-use space at very favorable rates. Be they restaurants or professional office or entertainment or the like. So long answer to a short question, you basically get tied up with a very long co-tenancy list when you are putting these people in. And it's something we have to adhere to and look at constantly in order to keep the mix where these folks are going to stay. In terms of the grocery-anchored centers that we buy, far less stringent. Obviously in the small shop space, basically what we're talking about is stores where you have a grocery anchor and somewhere between 10,000 and 20,000 feet of small shops. The most we will give somebody is a covenant that grocery store will be there or will not go dark. But beyond that, we're not having to give anything. As I've said, leasing in small shops has been very robust for us. We're at 97% occupancy so, releasing spreads are good. You are seeing, again, mom and pops, some of them pressured and particularly people that are somewhat exposed to internet sales. But again, wherever those go out, we're not seeing any slowdown in the velocity of getting those places rebilled.

好的，John。順便說聲早安。我一題一題回答。關於配送中心（distribution center），我們的看法是這樣。如果這家《財富》50大客戶只是選擇我們來設計、興建一座配送中心，我們的費用大約會在120萬美元左右。我們會就施工與開發收取約6%的費用。大致會是那樣的模式。在長期租賃安排下，我們基本上除了同樣能取得上述收益外，還會再獲得額外幾百萬美元的利潤，取決於最終退出資本化率（exit cap rate）。因此這是一份10年期的三重淨租約（triple net lease），而且對方顯然是一家實力極強的公司。但目前外部在重點與取向上仍有很大的變動性。我們的預期是額外幾百萬美元。這顯然可能更高。基於這個信用（credit）的性質，我不認為它會下降。但同樣地，這就是為什麼區間會這麼寬。至於共同承租（co-tenancies）的情況，大致可分成幾個不同類別。John，你我之前談過我們的複合式零售（mixed-use retail）。就我們複合式案場中的精品零售商而言，他們在整體複合式中占比不算很大，但現有的部分很重要。我們指的是Anthropologie、Lululemon、Williams Sonoma等等。這裡有非常——我先退一步說。為了讓像維吉尼亞海灘這樣的次級市場吸引到這類租戶（他們基本上在整個市場只會開一家店），你競爭的不是街對面的那個商場。你是在和其他次級市場競爭。所以像Anthropologie可能在次級城市只有少數幾個開店機會，而可能有30個次級城市在爭取同一個租戶。因此如我之前強調，這些對我們本身並不是能直接賺錢的案子。他們需要投入大量的租戶裝修（tenant improvement），而且租金水準不高。但他們能讓你在該複合式空間中，以非常有利的條件引進其他租戶。不論是餐廳、專業辦公、娛樂等。所以用簡短問題的長答案來說，當你把這些人放進來時，你基本上就會被一份很長的共同承租清單綁住。這是我們必須遵守並持續關注的事情，以維持組合，讓這些品牌願意留下來。至於我們收購的生鮮超市主力店商場（grocery-anchored centers），條件就沒那麼嚴格。顯然在小店鋪（small shop）區域，我們談的基本上是有一個超市主力店，外加約10,000到20,000平方英尺的小店鋪。我們最多只會給對方一個承諾：那家超市會在、或不會熄燈（go dark）。除此之外，我們不需要再讓出任何條件。如我所說，我們的小店鋪出租一直非常強勁。我們的入住率是97%，所以續租租金價差（releasing spreads）也不錯。你確實會看到一些夫妻店（mom and pops）受到壓力，特別是那些較暴露於網路銷售的業者。但即便如此，無論哪些店退出，我們在把那些空間重新出租（rebilled）方面的速度並沒有看到任何放緩。

Great. Just a quick follow-up. If I wanted to carve out the build to suit profit out of 4Q, should I carve our $0.04 which would give us FFO guidance $0.96 to $1.01 for 2018?

很好。我再快速追問一下。如果我想把第四季的 build-to-suit 利潤剔除，是否應該剔除 0.04 美元，這樣 2018 年的 FFO 指引就會是 0.96 至 1.01 美元？

I think that's in the right neighborhood. I don't think that basically you -- if you simply said the value is what we spent to build it, you would cut that number in half. So I don't -- but I think your math is correct.

我認為大致在那個範圍內。我不認為你——如果你只是說其價值等於我們建造它所花的成本，那你會把那個數字砍半。所以我不——但我認為你的數學計算是正確的。

Laura Engel, Stonegate Capital Partners.

Laura Engel，Stonegate Capital Partners。

Good morning. Thanks for taking my question. I know we're going a little bit here, so I'll be quick. Most have been answered. In general, other than discussing the industrial disposition maybe for later in 2018, I guess broadly, how can we look at that? Jus the disposition activity for this year versus maybe compare it to prior year or the year before that overall? It sounds like you're pretty fixed with the portfolio, but any other thoughts on things that might get released this year?

早安。謝謝讓我提問。我知道我們時間有點超了，所以我會很快。大部分都已經回答了。整體來說，除了可能在 2018 年稍晚討論工業資產處分之外，我想更廣泛地問，該如何看待這件事？也就是今年的處分活動，與前一年或再前一年相比，整體上應該怎麼比較？聽起來你們的投資組合相當固定，但對於今年可能會釋出的其他項目，還有什麼想法嗎？

Sure. Again, we're -- we've got a very strong pipeline that we talked about ad nauseum. We've got a developing pipeline that's going to give us further requirements for capital and most likely more in 2019 than in 2018. We're also anticipating using the ATM this year, assuming market conditions are favorable. Again, they may not be favorable, and so we may be in a position where we decide to reap some of that NAV that we're creating in our pipeline irrespective of our desire to own these things long term. And that's part of the flexibility that we have to maintain. We try not to pay too much attention to the market, but you can't ignore it in its entirety when you might need to raise capital. So we're going to be looking at that very strongly. I would say our druthers is that the stock goes back to $16 and we don't sell anything. We'll see if that ends up being realistic.

當然。再說一次，我們——我們有一個非常強勁的案源管線，我們已經反覆談到不厭其煩。我們也有一個正在開發中的管線，將帶來進一步的資本需求，而且很可能 2019 年會比 2018 年更多。我們也預期今年會使用 ATM（隨市發行）機制，前提是市場條件有利。同樣地，市場也可能不利，因此我們可能會在某些情況下決定把我們在管線中創造的部分 NAV 變現，儘管我們原本希望長期持有這些資產。這也是我們必須保有的彈性之一。我們盡量不過度關注市場，但當你可能需要募資時，也不可能完全忽視市場。所以我們會非常密切地觀察。如果照我們的偏好，是股價回到 16 美元，然後我們什麼都不賣。看看這最後是否現實。

Great. Well, always appreciate all the good information as well as the market insight. So thank you for taking my question.

很好。我一向很感謝你們提供的所有優質資訊以及對市場的洞見。謝謝你們回答我的問題。

Bill Crow, Raymond James.

Bill Crow，Raymond James。

Good morning, guys. Mike, maybe for you, what is your assumption as far as the issuance, the ATM, as far as is that pro rate each quarter? Is it backend loaded? What have you built into the guidance?

早安，各位。Mike，可能問你一下，你對發行（ATM）在時間分配上的假設是什麼？是每季按比例？還是偏向後段集中？

What we've built in is $10 million here in the first quarter and then $15 million per quarter thereafter.

我們納入的假設是第一季 1,000 萬美元，之後每季 1,500 萬美元。

Okay, that's helpful. And then assuming that gets done, or some other way to raise capital, say a similar amount for an asset shift, does that position you for all the activity for next year without having to raise additional equity? Or do you anticipate that that issuance will occur again based on what's delivering next year?

好的，這很有幫助。那麼假設這能完成，或透過其他方式募資，例如為了資產調整而募到類似金額，這是否足以支應你們明年的所有活動，而不需要再額外發行股權？或者你預期基於明年交付的項目，還會再次進行那樣的發行？

Bill, I'm going to say that there's too much going on right now to answer that question. Like Lou said, we've got a couple of large build to suit projects, I mean large mixed-use public/private partnerships we're looking at right now that are certainly going to take some capital. So when we see what's going on with these development projects at the time we can give a better answer on that.

Bill，我會說現在變數太多，沒辦法回答那個問題。就像 Lou 說的，我們目前正在看幾個大型的 build-to-suit 專案——我是說大型的複合式公私合營（PPP）案——這些肯定會需要一些資本。所以等我們看清楚這些開發專案的進展時點，我們才能給你更好的答案。

I'm sorry, yes, Bill, as you can imagine, just what we've discussed on the phone today, if we succeed in bringing our next project with Duke together, you're looking at another $100 million plus high-rise, mixed use facility. And as that develops and starts taking capital, our decision is going to be do we want to won this long term versus everything else in our portfolio? And that equation has to be done on the fly continually. So it's really difficult to put anything out here right now.

抱歉，是的，Bill，如你所想像，就我們今天電話裡討論的內容，如果我們成功把與 Duke 的下一個專案整合到位，你看到的會是另一個 1 億美元以上的高樓複合用途設施。而當它逐步推進並開始占用資本時，我們要做的決策會是：相較於投資組合中的其他資產，我們是否要長期持有它。而這個權衡必須隨時動態地持續評估。所以現在真的很難對外給出任何明確說法。

Yeah, that's fair. I guess I was thinking about just what's been announced what's being delivered as we can look through 2019. Obviously what gets announced after that would be incremental from a capital perspective. So if the market remains --

是的，這很合理。我想的是，就已經宣布、且我們可以看到一路到 2019 年的交付項目。顯然，之後才宣布的項目在資本角度會是增量。所以如果市場仍然——

If everything were completely static and we basically just stop moving forward and deliver the pipeline and not sell anything in 2019, my guess is we would need a little bit of capital. But that's obviously only a hypothetical that's just not going to happen.

如果一切都完全靜止，而我們基本上停止往前推進，只交付管線、並且在 2019 年不賣任何資產，我猜我們會需要一點資本。但那顯然只是個假設，實際上不太可能發生。

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

謝謝。我們的問答環節到此結束。我想把時間交還給管理層，請他們做進一步或結語的評論。

I really appreciate everybody's attention today. Great questions. We look forward to having an announcement after our board meeting in a couple of weeks and subsequent to that, hopefully announcing some new projects coming up this coming year. Thanks again for your attention and have a great day.

非常感謝各位今天的關注。問題都很棒。我們期待在幾週後董事會會議之後發布公告，並在那之後，希望能宣布一些明年即將推進的新專案。再次感謝各位的關注，祝大家有美好的一天。

Thank you. That does conclude today's teleconference and you may disconnect you line at this tie. Have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議到此結束，您現在可以中斷連線。祝您有美好的一天。感謝您今天的參與。