AH Realty Trust, Inc (AHRT) 2018 Q1 法說會逐字稿

Welcome to Armada Hoffler's First Quarter 2018 Earnings Conference Call. (Operator Instructions)

歡迎參加 Armada Hoffler 2018 年第一季財報電話會議。（接線員指示）

As a reminder, this conference is being recorded today, Tuesday, May 1, 2018. I would now like to turn the conference call over to Michael O'Hara, Chief Financial Officer at Armada Hoffler.

提醒各位，本次會議將於今天（2018 年 5 月 1 日，星期二）錄音。現在我想把電話會議交給 Armada Hoffler 財務長 Michael O'Hara。

Good morning, and thank you for joining Armada Hoffler's First Quarter 2018 Earnings Conference Call and Webcast. On this call this morning, in addition to myself, are Lou Haddad, CEO; and Eric Smith, Chief Operating Officer, who will be available for questions.

各位早安，感謝各位參加 Armada Hoffler 2018 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 Lou Haddad，以及營運長 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 1, 2018. The numbers to access the replay are provided in the earnings press release.

本公司今早已發布公布第一季財報的新聞稿，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，並可收聽至 2018 年 6 月 1 日。重播的撥入號碼已載於財報新聞稿中。

For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, May 1, 2018, and will not be updated subsequent to this initial earnings call.

對於收聽本次簡報重播的聽眾，我們提醒：本次發言係截至今天（2018 年 5 月 1 日）為止，且在本次初次財報電話會議之後不會再更新。

During this call, we will make forward-looking statements, including statements related to the future performance of our portfolio, our development pipeline, impact of acquisitions and dispositions, our construction business, our portfolio performance and financing activities as well as comments on our guidance and outlook.

在本次電話會議中，我們將提出前瞻性陳述，包括與我們投資組合未來表現、開發管線、併購與處分的影響、我們的營造業務、投資組合表現與融資活動，以及對我們的指引與展望之評論等相關陳述。

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 statements disclosed in our press release this morning and the risk factors disclosed in documents we have filed with or furnished to the SEC.

提醒聽眾注意，這些陳述受若干風險與不確定性影響，其中許多難以預測且通常超出我們的控制範圍。這些風險與不確定性可能導致實際結果與我們目前的預期存在重大差異；我們建議聽眾查閱今早新聞稿中揭露的前瞻性陳述，以及我們向美國證券交易委員會（SEC）提交或提供之文件中揭露的風險因素。

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 指標的定義，以及與最可比 GAAP 指標的調節表，均收錄於季度補充資料包中，並可於我們的網站 armadahoffler.com 取得。

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

接下來我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. As some of you are aware, next week marks the fifth anniversary of our IPO.

謝謝你，Mike。各位早安，感謝各位今天加入我們。各位當中有些人可能知道，下週將是我們 IPO 的第五週年。

I'd like to begin this morning with a word of thanks to those of you who have been a part of the journey we've enjoyed. It has been a terrific one filled with several noteworthy accomplishments.

今天早上我想先向一路以來與我們同行的各位致謝。這是一段非常精彩的旅程，期間達成了多項值得一提的成就。

Our growth over the past 5 years has seen us nearly triple our market cap. Earnings, net asset value and dividends have grown each year. With a total return of nearly 50%, we have more than doubled the return of the RMS REIT index over the 5-year period.

過去 5 年的成長使我們的市值幾乎成長至原來的三倍。盈餘、淨資產價值（NAV）與股利每年皆成長。總報酬率接近 50%，在這 5 年期間，我們的報酬率超過 RMS REIT 指數的兩倍以上。

Investors can be confident that as the company's largest shareholder, management will continue to execute our business model in their best interests.

投資人可以放心，作為公司最大股東，管理團隊將持續以符合投資人最佳利益的方式執行我們的商業模式。

Many of you have come to realize that we are a much different than a traditional REIT. With multiple product types in our portfolio, a robust development operation, a profitable construction business, joint ventures, municipal partnerships and mezzanine loans, ours is certainly a complex business model. It is also one that has been very successful for nearly 40 years.

許多人已經意識到，我們與傳統 REIT 大不相同。我們的投資組合涵蓋多種產品類型，擁有強健的開發營運、獲利的營造業務、合資企業、市政合作夥伴關係以及夾層貸款，因此我們的商業模式確實相當複雜。但這也是一個近 40 年來非常成功的模式。

Our company is built to thrive in a wide variety of business environments. The current macroeconomic backdrop is no exception. We believe that the opportunities afforded by a growing economy far outweigh the challenge of a higher cost of capital.

我們的公司架構旨在能在各種商業環境中茁壯成長，當前的總體經濟背景也不例外。我們相信，經濟成長所帶來的機會遠大於資本成本上升所帶來的挑戰。

The current climate is marked by increased opportunities in development, public-private partnerships, build-to-suit engagements, third-party construction and tenant expansion. We believe these opportunities can more than offset the impact of gradually rising interest rates. We intend to further demonstrate the unique advantages of our integrated model in the coming months.

目前的環境帶來更多機會，包括開發案、公私協力（PPP）、量身訂做（build-to-suit）合作、第三方營造以及承租戶擴張。我們相信，這些機會足以抵銷利率逐步上升的影響。未來幾個月，我們將進一步展現整合式模式的獨特優勢。

As I've often said to investors, the best part of being in the real estate business is the transparency it demands. When all is said and done, you either produced the results or you didn't, the earnings and net asset value are there or they are not. We're very comfortable with investors using this methodology to judge our performance.

我經常對投資人說，從事不動產業務最棒的一點，就是它要求高度透明。到頭來，你不是交出成果，就是沒有；盈餘與淨資產價值（NAV）要嘛存在，要嘛不存在。我們非常樂於投資人用這種方法來評估我們的表現。

This morning, we reported first quarter results of $0.25 of normalized FFO per share, which was in line with our expectations. While we are not inclined to adjust our guidance at this time, we are extremely optimistic about the company's prospects for the rest of 2018 and our ability to deliver on our promises. Perhaps even more importantly, we remain on track with our development pipeline and the expected corresponding increase in both earnings and NAV. Deliveries have begun and will continue over the next few quarters. My optimism is rooted in our business model, that of a fully diversified, actively managed real estate company with multiple business lines.

今天早上，我們公布第一季每股標準化 FFO 為 0.25 美元，符合我們的預期。雖然我們目前不打算調整指引，但我們對公司在 2018 年其餘期間的前景以及兌現承諾的能力極為樂觀。更重要的是，我們的開發管線仍按計畫推進，並預期將帶動盈餘與 NAV 的相應成長。交付已經開始，並將在未來幾季持續進行。我的樂觀來自於我們的商業模式：一家完全多元化、積極管理、且擁有多條業務線的不動產公司。

For instance, one focus is on third-party construction opportunities. And we are poised to sign several new contracts. Our expectation is for third-party backlog to more than double over the next couple of months and to be well over $100 million by summer's end. We've backfilled a large portion of the office vacancy at Town Center, and as was anticipated, same-store NOI has begun to recover from its temporary decline. And we believe, we'll ultimately return to the positive levels that we've enjoyed in the past.

例如，我們的一個重點是第三方營造機會，而我們也準備簽下數份新合約。我們預期第三方在手訂單（backlog）將在未來幾個月內增加一倍以上，並在夏末前遠超過 1 億美元。我們已補回 Town Center 大部分的辦公室空置，且如預期所示，同店 NOI 已開始自先前的短暫下滑中回升。我們相信，最終將回到過去所享有的正向水準。

As construction on Phase 6 at Town Center nears completion and leasing commences on the new multifamily units, the additional supply allows us to begin substantial upgrades to The Cosmopolitan apartments next door without affecting our ability to meet ongoing demand. We will be cycling through the units over a 2-year period to ensure this asset remains the premier luxury address in the submarket.

隨著 Town Center 第 6 期工程接近完工，且新的多戶住宅單位開始招租，新增供給使我們得以在不影響持續需求滿足能力的情況下，開始對隔壁的 The Cosmopolitan 公寓進行大規模升級。我們將在 2 年期間逐步輪替整修各單位，以確保該資產仍為該次市場中首屈一指的豪華住宅地標。

With regard to the rest of the development pipeline, leasing progress remains brisk on the newly delivered multifamily projects and reinforces our view of healthy spreads achieved through our development operations.

至於其餘開發管線，新近交付的多戶住宅專案招租進度依然迅速，並強化了我們對透過開發營運所取得健康價差（spread）的看法。

Currently, Annapolis Junction is nearing the 45% mark with the prime leasing season yet to come. Harbor Point stands at nearly 40% leased, despite delivery occurring only 6 weeks ago. We had high expectations for this project and even we have been pleasantly surprised by the pace of leasing thus far. In both of these projects, we expect pro forma rents to be achieved.

目前，Annapolis Junction 的出租率接近 45%，而主要招租旺季尚未到來。Harbor Point 的出租率接近 40%，儘管該案僅在 6 週前才交付。我們對此專案原本就有很高期待，而目前的招租速度甚至讓我們也感到驚喜。對於這兩個專案，我們預期可達成備考（pro forma）租金水準。

We now anticipate that our Durham high-rise, One City Center anchored by Duke and WeWork, will open around the end of the third quarter, nearly fully leased. Construction continues on the rest of the projects in the pipeline and scheduled deliveries remain unchanged.

我們目前預期，位於 Durham、由 Duke 與 WeWork 作為主力承租戶（anchored）的高樓專案 One City Center，將於第三季末左右開幕，且幾乎滿租。管線中其餘專案仍持續施工，預定交付時程維持不變。

As we have said before, our expectation is that delivery and stabilization of this $0.5 billion pipeline will contribute well over $1 in NAV per share as well a significant boost to earnings. While our intent is to retain ownership of all the projects in this pipeline, market conditions may lead us to monetize a portion of this healthy value creation in order to strengthen the balance sheet as well as to help fund another round of exciting projects.

如同我們先前所說，我們預期這條 5 億美元的管線在交付並達到穩定營運後，將為每股 NAV 貢獻遠超過 1 美元，並顯著提升盈餘。雖然我們的意圖是保留該管線中所有專案的所有權，但市場狀況可能促使我們將部分健康的價值創造變現，以強化資產負債表，並協助資助下一輪令人振奮的專案。

The next development pipeline is taking shape with large mix-use projects in sought-after locations in large metropolitan markets, with some likely to include public participation. Smaller infill locations featuring mid-market, multifamily and retail projects may also be included, as secondary and tertiary cities are experiencing re-urbanization as well. We expect to begin announcing these projects later this year.

下一條開發管線正在成形，包含位於大型都會市場、熱門地段的大型複合式（mixed-use）專案，其中部分可能納入公部門參與。較小型的都會填充（infill）地點，包含中價位多戶住宅與零售專案，也可能納入，因為二線與三線城市同樣正經歷再都市化。我們預期將於今年稍晚開始公布這些專案。

As I mentioned last quarter, our construction group will be building a 220,000 square foot distribution center for a wholly owned subsidiary of PepsiCo in Richmond, Virginia. In the negotiations with the client, we offered a menu of fee construction and development, build-to-suit purchase or long-term lease, giving Pepsi optionality that is only afforded with our integrated business model. They 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 the value creation in this manner. Therefore, profit recognition is expected to be significantly higher than just the typical fees we would have earned under a third-party construction contract.

如同我在上一季提到的，我們的營造事業群將在維吉尼亞州里士滿為百事公司（PepsiCo）的一家全資子公司興建一座面積 220,000 平方英尺的配送中心。在與客戶的協商過程中，我們提供了多種方案，包括收取費用的施工與開發、量身訂做（build-to-suit）的購置，或長期租賃，讓百事擁有只有在我們整合式商業模式下才能提供的彈性選擇。他們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。由於新稅法所包含的有利稅率，以此方式將價值創造變現對我們而言是可行的。因此，預期利潤認列將顯著高於我們在第三方施工合約下通常僅能賺取的標準費用。

As many of 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. The disposition of many -- most of those buildings 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, with after-tax proceeds available for balance sheet purposes.

如各位所知，我們的營造事業群相當定期地會取得這類量身訂做（build-to-suit）的機會。自我們 IPO 以來，我們已執行了 4 座此類型的設施。其中許多——甚至大多數——建物的處分，促使我們透過 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，但較低的稅率也將使我們能以 TRS 層級作為替代方式來處理這些案子，並將稅後收益用於資產負債表相關用途。

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. We appreciate the confidence demonstrated by our board with their approval of a dividend increase of 5.3% this past February. This brings the total dividend increase since IPO to 25%. With the yield well in excess of 5%, combined with consistent annual increases, we feel that we are delivering exceptional value to our shareholders.

我們對公司表現仍極為看多，因為具增益性（accretive）的開發管線即將交付，且資產負債表穩健。我們相信未來幾年將迎來顯著成長。我們也感謝董事會在今年 2 月核准股利提高 5.3% 所展現的信心。這使得自 IPO 以來的股利累計增幅達到 25%。在殖利率遠高於 5% 且每年穩定調升的結合下，我們認為正為股東創造卓越價值。

At this time, I'll turn the call over to Mike to discuss our first quarter results.

接下來，我將把電話會議交給 Mike，請他說明我們第一季的業績。

Thanks, Lou. Today, I want to cover the highlights of the quarter, thoughts on our balance sheet and our 2018 guidance.

謝謝，Lou。今天我想說明本季重點、我們對資產負債表的看法，以及 2018 年的財測指引。

This morning, we reported FFO of $0.26 per share and normalized FFO of $0.25 per share for the first quarter, which was in line with our expectations. As we anticipated, same-store NOI improvements have begun. 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 expansion of 2 significant office tenants at 4525 Main Street, which is not in the same-store NOI calculation. We made progress in leasing this vacated space and with occupancy increasing later this year, we expect same-store NOI to be positive.

今天早上，我們公布第一季每股 FFO 為 0.26 美元、每股標準化 FFO 為 0.25 美元，符合我們的預期。如我們所預期，同店 NOI 的改善已開始出現。正如過去幾季所討論，該指標受到 Town Center 第 6 期持續施工的影響，以及 4525 Main Street 兩家重要辦公室租戶搬遷擴張的影響；而該物件不納入同店 NOI 計算。我們在出租這些空置面積方面已取得進展，且隨著今年稍晚入住率提升，我們預期同店 NOI 將轉為正成長。

As Lou mentioned, we began the renovation of The Cosmopolitan Apartments this quarter. Currently, there are 35 units offline. With these units not available for rent, The Cosmo is excluded from the same-store NOI calculation and will not return until 4 quarters after the renovations are completed.

如 Lou 所提到的，我們本季開始整修 The Cosmopolitan Apartments。目前有 35 戶暫停出租。由於這些戶數無法出租，The Cosmo 被排除在同店 NOI 計算之外，且要在整修完成後滿 4 個季度才會重新納入。

To illustrate what is truly happening with our portfolio, we continue to encourage you to look at our occupancy and releasing spreads. Our core operating portfolio occupancy for the first quarter was 96%, with office at 92%, retail at 97%, and multifamily at 96%. Additionally, our releasing spreads were strong for the quarter, with positive 7.8% on a GAAP basis and positive 3% on a cash basis.

為了呈現我們投資組合的真實狀況，我們仍建議各位關注入住率與續租/再出租租金價差（releasing spreads）。第一季我們核心營運投資組合入住率為 96%，其中辦公為 92%、零售為 97%、多戶住宅為 96%。此外，本季續租/再出租租金價差表現強勁：以 GAAP 基礎計算為正 7.8%，以現金基礎計算為正 3%。

On the construction front, we reported a segment gross profit in the first quarter of $600,000 on revenue of $23 million as compared to a $2.3 million segment gross profit in the first quarter of 2017. If not for this decrease in construction gross profit, the first quarter 2018 normalized FFO per share would have been $0.02 higher than a year ago. At the end of the first quarter, the company had a third-party construction backlog of $31 million. As Lou said, we expect the construction backlog to increase in the next few months.

在營造方面，我們第一季該事業部門在 2,300 萬美元營收下，部門毛利為 60 萬美元；相較之下，2017 年第一季部門毛利為 230 萬美元。若非營造毛利下滑，2018 年第一季每股標準化 FFO 將比去年同期高出 0.02 美元。截至第一季末，公司第三方營造在手訂單（backlog）為 3,100 萬美元。如 Lou 所說，我們預期未來幾個月營造在手訂單將增加。

Now turning to our balance sheet. We continue to take actions to enhance the flexibility of our balance sheet and work on loan maturities. Our initial 2018 guidance included the expected future acquisition of 2 Lowes Foods shopping centers. With the current market environment, we decided not to acquire one of the centers. We are still planning to acquire the other center because this transaction is with a strategic partner who is taking back all their equity and OP units, which is consistent with our historic OP unit acquisition strategy.

接著談資產負債表。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。我們最初的 2018 年指引包含預期未來收購 2 座 Lowes Foods 購物中心。考量目前市場環境，我們決定不收購其中一座。我們仍計畫收購另一座，因為該交易的策略夥伴將收回其全部股權與 OP 單位，這與我們歷來以 OP 單位進行收購的策略一致。

In addition to not acquiring one of these centers, we have entered into an agreement to sell the Wawa outparcel from the newly acquired Indian Lake's Harris Teeter Center for a 5.35% cap rate, with the proceeds being used for balance sheet purposes. By passing on one of these acquisitions and the sale of the Wawa, we are reducing our expected capital needs for 2018. We acquired the Indian Lakes Center for a 7.1% cap rate and net of this outparcel sale, we now have a Harris Teeter Center that is yielding nearly 8%.

除了不收購其中一座購物中心外，我們也已簽署協議，以 5.35% 的資本化率（cap rate）出售新近收購之 Indian Lake 的 Harris Teeter Center 的 Wawa 外圍地塊（outparcel），出售所得將用於資產負債表相關用途。透過放棄其中一項收購以及出售 Wawa，我們降低了 2018 年預期資本需求。我們以 7.1% 的資本化率收購 Indian Lakes Center；扣除該外圍地塊出售後，我們目前持有的 Harris Teeter Center 的收益率接近 8%。

Due to the equity market conditions, we did not issue any shares to the ATM program in the first quarter. Hopefully, the market will change before long, but we're not counting on it. So we're exploring other means of raising capital, including selling assets. We are in discussion with brokers regarding opinions in value of various assets to determine our best capital strategy.

由於股權市場狀況，我們第一季未透過 ATM 計畫發行任何股份。希望市場不久後會改變，但我們不會仰賴此假設。因此，我們正在探索其他籌資方式，包括出售資產。我們正與仲介討論多項資產的估值意見，以決定最佳資本策略。

We continue to work on the 5 2018 loan maturities. During the first quarter, the Sandbridge Commons Center was extended for 5 years and both of the Columbus Village loans were paid off. Of the remaining 2 maturities, we have a term sheet from TD Bank to refinance the JHU student housing project loan for 7 years with lower spreads than the current loan.

我們持續處理 2018 年到期的 5 筆貸款。第一季期間，Sandbridge Commons Center 貸款展延 5 年，且 Columbus Village 的兩筆貸款已全數清償。在剩餘 2 筆到期貸款中，我們已取得 TD Bank 的條款書（term sheet），將 JHU 學生住宅專案貸款以較現行貸款更低的利差進行 7 年期再融資。

The other maturity is the Lightfoot Marketplace loan. We are in discussions with the lender and expect to extend the loan well before the maturity date. In addition, during the quarter, we added assets to the credit facility borrowing base and increased the capacity of this facility by $30 million to $330 million.

另一筆到期貸款為 Lightfoot Marketplace 貸款。我們正與放款機構洽談，並預期在到期日前很早就能完成展延。此外，本季我們將資產納入信用額度的借款基礎（borrowing base），並將該額度容量增加 3,000 萬美元至 3.3 億美元。

The lending environment has changed during the past couple of months with spreads substantially lower. We are taking advantage of this environment and are in discussions with our lenders with whom we have floating rate debt. We expect to lower spreads by 35 to 65 basis points and over a $100 million of debt. At the end of the quarter, we had total outstanding debt of $595 million, including $108 million outstanding under the $150 million revolving credit facility.

過去幾個月放款環境已有變化，利差顯著降低。我們正利用此環境，並與持有我們浮動利率債務的放款機構進行討論。我們預期可在超過 1 億美元的債務上，將利差降低 35 至 65 個基點。截至季末，我們未償還總負債為 5.95 億美元，其中包含在 1.5 億美元循環信用額度下已動用的 1.08 億美元。

We continue to evaluate our exposure to highest interest rates and look for opportune times to hedge our interest rate exposure. At quarter end, 91% of our debt was either fixed or hedged. This past quarter, we purchased a 2-year $15 million interest rate cap at 2.25%.

我們持續評估對較高利率的曝險，並尋找適當時點對利率曝險進行避險。截至季末，我們 91% 的債務為固定利率或已避險。本季我們購入一筆 2 年期、名目金額 1,500 萬美元、上限利率 2.25% 的利率上限（interest rate cap）。

As part of our hedging strategy, we've always evaluated interest rate caps and swaps to mitigate exposure to interest rate risk. The market has typically overestimated the path of LIBOR, which resulted in a steeper yield curve making swaps more expensive relative to caps.

作為避險策略的一部分，我們一向評估利率上限（caps）與利率交換（swaps），以降低利率風險曝險。市場通常高估 LIBOR 的走勢，導致殖利率曲線更陡，使得相較於上限，交換的成本更高。

For this reason, we primarily relied on caps for interest rate protection. As the fed has been increasing short-term floating rates, the yield curve has flattened and the premium to convert to fixed rates has fallen to more attractive levels.

因此，我們主要依賴上限來進行利率保護。隨著聯準會提高短期浮動利率，殖利率曲線已趨於平坦，而轉換為固定利率所需的溢價已下降至更具吸引力的水準。

Additionally, market expectations will closely align with the fed's rate projections, which has limited sum of the upside of caps. In the current market, we believe swaps are a better option to mitigate interest rate exposure than caps. Thus, subsequent to the quarter, we entered into a 5-year swap for $50 million and expect to enter into more in the near future.

此外，市場預期將與聯準會的利率預測緊密一致，這限制了利率上限（cap）的上行空間總和。在目前的市場環境下，我們認為相較於利率上限，利率交換（swap）是更好的選擇，可用以降低利率曝險。因此，在本季之後，我們簽訂了一筆5年期、名目本金5,000萬美元的利率交換，並預期在不久的將來會再簽訂更多。

Today, we affirmed our 2018 guidance with normalized FFO of $1 to $1.05 per share. As discussed last quarter, the guidance includes the expected sale of the distribution center by the TRS, as we view this as a construction project that evolved from a cross-selling platform. We intend to sell this asset before it is placed in service, including a normalized FFO. We include the expected profit from this sale in both the construction company gross profit and normalized FFO guidance.

今天，我們重申2018年指引：標準化FFO為每股1.00至1.05美元。如同上季所討論，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交叉銷售平台演變而來的建設專案。我們打算在該資產投入使用前出售，並將其納入標準化FFO。我們也將此出售的預期獲利同時納入建築公司毛利與標準化FFO指引。

The guidance for this part of our business has a wider-than-normal range due to the variability in exit cap rates. This is another example of being an opportunistic real estate company. 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 do not intend to issue any equity for this project.

由於退出資本化率（exit cap rate）的變動性，本業務部分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。由於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年影響債務對EBITDA比率。鑑於此專案及其相關債務的短期性質，我們不打算為此專案發行任何股權。

Now I'd like to go through the details of the updated 2018 guidance. First, starting with our assumptions: the acquisition of retail center in the second half of the year; sale of the Indian Lake's Wawa during the second quarter with proceeds being used for balance sheet purposes; raising $42 million through the ATM program, assuming favorable market conditions; the sale of the distribution center in the fourth quarter. Since the FFO will be recognized at the time of the sale, fourth quarter normalized FFO will be substantially higher than the previous 3 quarters. Interest expense is calculated on the forward LIBOR curve, which forecasts rates rising to 2.25% by year-end.

接下來我想說明更新後的2018年指引細節。首先，從我們的假設開始：下半年收購零售中心；第二季出售Indian Lake的Wawa，所得款項用於資產負債表用途；在市場條件有利的假設下，透過ATM計畫募集4,200萬美元；第四季出售配送中心。由於FFO將在出售時認列，第四季的標準化FFO將顯著高於前三季。利息費用係依遠期LIBOR曲線計算，該曲線預測利率於年底上升至2.25%。

The guidance of $1 to $1.05 per share is predicated on the following updated components: total NOI in the $79.5 million to $80.2 million range; third-party construction gross profit in the $4.4 million to $7.5 million range; general and administrative expenses in the $10.7 million to $11 million range; interest income from our mezzanine financing program in the $9.3 million to $9.5 million range. As of quarter end, the aggregate loan balance of these mezzanine loans was $88 million, interest expense in the $19.8 million to $20.3 million range and 63.6 million weighted average shares outstanding.

每股1.00至1.05美元的指引係基於以下更新後的組成項目：NOI總額介於7,950萬至8,020萬美元；第三方建築毛利介於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930萬至950萬美元。截至季末，這些夾層貸款的合計貸款餘額為8,800萬美元；利息費用介於1,980萬至2,030萬美元；加權平均流通股數為6,360萬股。

I'll now turn the call back to Lou.

我現在把電話交回給Lou。

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

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

Operator, we'd 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 is from Dave Rodgers with Robert W. Baird & Company.

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

Lou, on the office side, looks like leasing volume picked up nicely in the quarter with some really good rental rates. Just wanted maybe you to comment on -- there's going to be a Town Center. Economics look like maybe, it was hard to tell if they were up or down, but TIs and LCs were up, but term was longer too. So maybe just comment kind of on the signings in the quarter and then your view on overall kind of activity for office in and around the Town Center.

Lou，就辦公室業務而言，看起來本季的租賃量明顯回升，而且租金水準相當不錯。我想請你評論一下——會有一個Town Center。經濟條件看起來可能……不太容易判斷是上升還是下降，但TI和LC提高了，不過租期也更長。所以想請你大致談談本季的簽約情況，以及你對Town Center及其周邊整體辦公室活動的看法。

Sure. Thanks, Dave. So it was a good quarter for backfilling the vacancies caused by moving the tenants into the new high-rise. Spreads were really good as you can see, and terms are lengthening as well. What's most exciting to us is that we finally have the pieces of the jigsaw puzzle put together so that the remaining space is essentially in 3 chunks. Again, forgetting what's in and out of the metric, our office portfolio at Town Center is about 800,000 square feet and there are 3 decent-sized chunks of space that are left, 2 10,000-foot spaces and a 20,000-foot space. So our expectation is to get, hopefully 2 of those filled between now and the end of the year. And then office occupancy will, once again, be in the high 90s. But there's a good amount of activity, a lot of optimism out there. And we look forward to taking advantage of the rest of it and get this place back to where it traditionally has been on an office basis.

當然。謝謝你，Dave。本季在回補因租戶搬入新高樓而造成的空置方面表現不錯。從你看到的數據來看，價差（spread）非常好，租期也在拉長。最令我們振奮的是，我們終於把拼圖的各個部分拼齊，使得剩餘空間基本上分成3個區塊。同樣地，先不管指標的納入與排除，Town Center的辦公室投資組合約為80萬平方英尺，剩下3個相當規模的空間：兩個1萬平方英尺的空間，以及一個2萬平方英尺的空間。因此，我們的預期是希望在現在到年底之間，能把其中2個租出去。如此一來，辦公室出租率將再次回到接近90%後段的水準。不過目前活動量不錯，市場上也有很多樂觀情緒。我們期待把握接下來的機會，讓這個地方在辦公室面向回到它傳統上應有的水準。

Great. And then with regard to the retail acquisition activity, I know we've talked about this in the past. But you continue to buy some retail centers. Obviously, the returns there are pretty good for you. But with all the concern about retail and tenancy, I mean, should we be looking at this as kind of building retail only to maybe sell a little bit on the back end to continue to, kind of, clean up the exposures? Do you just like that business and continue to want to grow it? And talk a little bit more about that, especially in the context of like a Bed Bath & Beyond, who continues to be kind of rumored out there as a potential problem.

很好。接著關於零售收購活動，我知道我們過去談過這點。但你們仍持續買進一些零售中心。顯然你們在那裡的報酬率相當不錯。但在外界對零售與租戶的擔憂之下，我是說，我們是否應該把這看作是先建立零售部位，之後在後端賣出一些，以持續、算是，清理曝險？還是你們就是喜歡這門生意並希望持續擴張？也請多談一些，特別是在像Bed Bath & Beyond這種持續被傳為可能出問題的租戶背景之下。

Sure. Let me take that one at a time. As you've heard me say before, we feel very comfortable with the retail that we own. The sectors that we are active in is the grocery anchorage centers with -- in secondary and tertiary cities along the mid-Atlantic. We're not seeing any pressure there in terms of sales or occupancies or anything that has been different over the last many years. We expect to continue to build out that part of the portfolio selectively. It's still all about location, just like it always has been. And so you have to maintain caution in that area as well as any other. We also like discounters. That continues to be a big feature in our portfolio, home improvement and discounters anchoring the nongrocery-anchored traditional centers in the portfolio. And lastly, our mixed-use retail, which, as you've heard me say before, is a bit of misnomer. Probably the least amount of space in that portion is traditional retail, with the majority being professional office and restaurants and for-profit schools. And that will continue to be a feature as long as we continue to do mixed-use development. Around the edges, obviously, investors pay us to stay attuned to what's going on in real estate. We've talked before about a couple of centers that we ultimately don't believe we'll own long term. We've talked about Bed Bath as a company that, as everybody knows, is under some duress. They are in 4 of our centers. And quite frankly, we'd be happy to get the space back in all 4 of those centers. I don't believe that's happening as those stores apparently are doing very well for that company. So we'll see what happens long term. But we continue to be believers in retail. As you all know, as the pipeline comes to delivery, the percentage of retail in our portfolio will continue to shrink on a relative basis. But our expectation is that we will cautiously add to that portfolio because, as you said, Dave, the prices are where they need to be to get some good accretion with very high-value tenants. So on an absolute basis, it'll continue to grow somewhat, but obviously, shrink on a relative basis. Hope that helps.

當然。我分點回答。正如你之前聽我說過的，我們對所持有的零售資產非常有信心。我們主要活躍的領域是以雜貨店為主力店（grocery-anchored）的購物中心，位於大西洋中部的二線與三線城市。就銷售、出租率或任何與過去多年不同的情況而言，我們沒有看到那裡有任何壓力。我們預期會選擇性地持續擴充投資組合的這一部分。這仍然完全取決於地點，就像一直以來一樣。因此，你在這個領域以及其他任何領域都必須保持謹慎。我們也喜歡折扣零售商（discounters）。這仍是我們投資組合的一大特色；在投資組合中那些非雜貨主力店的傳統購物中心裡，家居修繕與折扣零售商是主要主力店。最後是我們的複合式零售（mixed-use retail），如同你之前聽我說過的，這個說法多少有點名不副實。那一部分中傳統零售的面積可能是最少的，多數是專業辦公、餐廳以及營利性學校。只要我們持續進行複合式開發，這就會持續成為特色。當然，在邊際上，投資人付費讓我們持續關注不動產市場的動態。我們之前談過，有幾個中心我們最終認為不會長期持有。我們也談過Bed Bath這家公司，大家都知道它正承受一些壓力。他們在我們4個中心裡有店面。坦白說，我們很樂意在這4個中心都把空間收回來。我不認為那會發生，因為那些門市顯然對該公司而言表現很好。所以長期會如何發展，我們再觀察。但我們仍然相信零售。如各位所知，隨著開發管線逐步交付，零售在我們投資組合中的占比將在相對基礎上持續下降。但我們的預期是會謹慎地增加該投資組合，因為如你所說，Dave，目前價格已達到能帶來不錯增益（accretion）的水準，而且租戶品質非常高。因此在絕對金額上會有些成長，但在相對占比上則會縮小。希望這能解答你的問題。

It does. And then last one from me. I just wanted to ask about the returns in the Cosmo spending. I know the way you put it in the supplement, Cosmo actually has higher rents than Encore, but I think a lot of that has to do with unit size. So can you kind of just talk about what type of bumps you are looking to get out of their unit renovation program at Cosmo?

確實如此。那我最後一個問題。我想問一下 Cosmo 的支出回報。我知道你在補充資料裡的呈現方式是，Cosmo 的租金其實比 Encore 更高，但我認為其中很大一部分與單位坪數有關。所以你能否談談，在 Cosmo 的單位翻新計畫中，你們預期能帶來哪些幅度的提升？

Sure. So once we deliver the premier, which is the apartments in Block 6 or Phase 6 of the Town Center, we're going to have 3 different styles of units at 3 different price points with the premier being small, either 1-bedroom or efficiency units, the Encore being, again, skewing towards on the smaller side, but more traditional units. And thirdly, the Cosmo, which has been the larger luxury units and more of a traditional high-rise. That property has enjoyed the highest rates in the submarket. It is now nearly 12 years old and the refresh is going to be significant. Mike can talk to you about the numbers. But our thoughts are that's mainly going to be seen in occupancy as opposed to rates, however. The rates are going to stay above -- and again, we have to look at this on a per-unit basis because that's the way people are renting these things in this area. It's going to be the highest cost per unit in this space. And it needs to stay as a leader of the pack.

當然。當我們交付 premier（也就是 Town Center 的第 6 區或第 6 期的公寓）之後，我們將會有 3 種不同風格、3 個不同價位帶的單位：premier 會是小坪數，1 房或套房；Encore 也是偏小，但屬於較傳統的格局；第三是 Cosmo，這一直是較大坪數的豪華單位，且更像傳統的高樓住宅。該物件在這個次市場一直享有最高的租金水準。它現在將近 12 年屋齡，這次的更新會相當顯著。Mike 可以跟你談數字。但我們的看法是，主要會反映在入住率上，而不一定是在租金上。不過，租金仍會維持在較高水準——而且我們必須以每戶為基礎來看，因為在這個區域大家就是以每戶來租。它會是這個市場中每戶成本最高的產品，並且需要持續作為領先者。

Our next question is from John Guinee with Stifel.

下一個問題來自 Stifel 的 John Guinee。

Right. First, Mike, how much are you assuming in terms of after-tax proceeds on the PepsiCo deal in your underwriting?

好的。首先，Mike，你在承作模型中，對 PepsiCo 這筆交易的稅後處分所得假設是多少？

Approximately $4 million on a sale at a 6.25% cap.

大約 400 萬美元，假設以 6.25% 的資本化率出售。

Okay, $0.06 or $0.07 a share?

好的，等於每股 0.06 或 0.07 美元？

Correct. It'd be just over $0.06.

沒錯。會略高於 0.06 美元。

So should we assume if your midpoint's $1.03, should we assume a $0.24, $0.24, $0.30 for the next 3 quarters?

所以如果你們的中位數是 1.03 美元，我們是否應該假設接下來 3 個季度分別是 0.24、0.24、0.30？

Yes, so it'll be $0.06 that we did on the Pepsi sale at the 6.25% cap would put it to high end at $1.05.

是的，所以以 6.25% 資本化率出售 Pepsi 所帶來的 0.06 美元，會把高端推到 1.05 美元。

Okay. Got you. Got you. And then second, Lou, your big sort of transformational year in terms of acquisitions, where you sold a lot of office and some tough high CapEx product, and you bought about $260 million of retail. Basically, a lot of Harris Teeters in the mid-Atlantic or south, about $260 million low cap rate, maybe, low 7s cap rate on average. If that product came on the market today, is it still low 7s or is it high 7s or is it low 8s? Any sense for that?

好的。了解，了解。第二個問題，Lou，你們在收購方面那個很具轉型意義的一年，你們賣了很多辦公室資產以及一些資本支出（CapEx）很吃重的產品，然後買了大約 2.6 億美元的零售資產。基本上是中大西洋或南部地區很多 Harris Teeter 的物件，約 2.6 億美元、低資本化率，平均可能是 7% 出頭的 cap rate。若這些產品今天再拿到市場上賣，還會是 7% 出頭嗎？還是 7% 高段？或是 8% 低段？你有什麼感覺嗎？

Good. That's a great question, John. It's something we talk about here a lot.

很好。這是個很好的問題，John。我們在這裡其實常常討論這件事。

That...

那……

We're not seeing -- and I don't know if it's the answer, but I can give you our market sample of one. All right? We're not seeing any loosening of cap rates on the high-quality grocery centers. And in fact, it seems to be going the wrong way or the other way, if you will, depending on where you sit. So that the [publics] to Harris Teeters, the -- and Whole Foods, they are all either compressing or staying the same. Now at the low end of the scale or the value end, if you will, there's a lot of widening. Because there's a lot of competition out there and, frankly, there's going to be -- there has been some consolidation. So at the regional grocery level, you all saw what happened with Southern Shopping Group. Food Lion centers, I think, would be out in the high 8s at this point. But the kind of centers that we want to own, we're not seeing the bargains out there that you would hope.

我們沒有看到——我不確定這是不是你要的答案，但我可以分享我們這邊「市場樣本數為 1」的觀察，好嗎？我們沒有看到高品質生鮮超市型購物中心的資本化率有任何放鬆。事實上，似乎是往相反方向走——或者說，取決於你站在哪個角度看。所以像 Harris Teeter 的（[publics]），以及 Whole Foods，這些要嘛在壓縮、要嘛維持不變。現在在尺度的低端、或你說的價值型端，則有很大的擴張。因為外面競爭很激烈，而且坦白說，將會——也已經出現一些整併。所以在區域型超市層級，你們都看到 Southern Shopping Group 發生了什麼事。我認為 Food Lion 的中心目前大概會落在 8% 高段。但我們想持有的那種中心，我們並沒有看到你可能期待的那種便宜貨。

Okay. Now very consistent with what we hear elsewhere. And then last question. Do you have a sense for, if you're able to acquire at your fixed purchase price, the mezz deals you did or the Durham JV? Do these come in at 5 yield on cost or 8 yield on cost?

好的。這跟我們在其他地方聽到的非常一致。最後一個問題。你們是否能判斷，如果你們能以固定的購買價格收購——像你們做的 mezz 交易或 Durham 的 JV——這些是以 5% 的成本收益率（yield on cost）成交，還是 8% 的成本收益率？

In terms of about where our option to purchase sits, those are in the high 6s as far as the Annapolis Junction at Fort Meade and Baltimore's Inner Harbor. In Durham, it's in the mid-7s. What we're talking about there and what you heard from Mike's commentary is we're deciding whether it's going to make more sense to hold a number of these long term or to go ahead and reap some of that spread. Because, as you know, multifamily rates are really low at this time, cap rates . As well as high-value credit on the office side in CBD. So I think, John, you probably had the best insight a couple of years ago when you endeavored to explain how that mezz program worked and with your 4 quadrants, whether it was going to make sense for Armada Hoffler to exercise their option or to sell. I think that's still a pretty good guide.

就我們的購買選擇權所處的位置而言，Annapolis Junction（在 Fort Meade）以及巴爾的摩的 Inner Harbor，大約在 6% 高段。Durham 則在 7% 中段。我們在討論的、以及你從 Mike 的評論中聽到的是：我們正在判斷，長期持有其中一些是否更合理，或是乾脆先把部分利差收割掉。因為如你所知，目前多戶住宅的利率很低，資本化率也很低；同樣地，CBD 辦公室端的高品質信用資產也是如此。所以我想，John，你可能在幾年前就有很好的洞見，當時你嘗試用你的四象限來解釋那個 mezz 計畫如何運作，以及對 Armada Hoffler 來說，行使選擇權或出售哪個更合理。我認為那仍然是很好的指引。

You mean I have to re-read that? All right. Will do.

你的意思是我得再把那篇重讀一遍？好吧。我會的。

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

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

Can you talk about what the expectations are for the Construction segment as we move throughout the year? The backlog's down to $31 million. Are we going to see a meaningful drop off before it picks up again? Or are there projects about to start here in the second quarter that we're not aware of, that keeps that segment more even keel throughout the year?

你能談談，隨著今年進行，對營建（Construction）部門的預期是什麼嗎？在手訂單（backlog）降到 3,100 萬美元。我們會在它再次回升之前看到明顯下滑嗎？還是第二季有一些我們不知道、即將啟動的專案，能讓該部門全年維持較為平穩？

Thanks, Rob. So the Construction business by its nature is a bit lumpy. Our expectation, as Mike alluded to, with the -- had we been booking the appropriate fees on the Pepsi engagement, then you would think -- see things a lot smoother. Because of the way we're doing it and because we have the ability to make a lot of extra profit, it's going to be, by its nature, lumpy. However, I think, at the end of the day, you're going to see that the construction company had its best year ever last year at $7-plus million and our expectation is that depending on the exit cap rate of that Pepsi distribution center that this year will rival that. What's shaping up in backlog, as I alluded to, I think, you're going to see that backlog well in excess of $100 million by the end of the summer. We're very close on a number of different contracts. And while -- as lumpy as 2018 is going to be, I think, 2019 is going to be much smoother because you'll be coming into the year with a significant backlog.

謝謝你，Rob。營建業務本質上確實比較不均勻、會有波動。正如 Mike 提到的，如果我們在 Pepsi 這個案子上一直都有認列適當的費用，那你會覺得——整體會平順得多。由於我們現在採用的方式，以及我們有能力創造更多額外利潤，它本質上就會比較起伏。不過我認為，最終你會看到，營建公司去年創下史上最佳表現，超過 700 萬美元；而我們的預期是，取決於那座 Pepsi 配送中心的退出資本化率，今年的表現將可與之匹敵。至於在手訂單的形成，如我先前提到的，我想你會看到到今年夏末在手訂單遠超過 1 億美元。我們在多個不同合約上已非常接近成交。雖然 2018 年會像這樣起伏，但我認為 2019 年會平順得多，因為你將帶著可觀的在手訂單進入新的一年。

Okay. And then, Mike, in terms of that guidance that you were talking about before about the, I guess, the sequential drop in the second and third quarters before the $0.04 bump back up in the fourth quarter because of the sale. What is that? Is that the removal of the units of Cosmo plus some fall off in construction plus something else? What else is in that, sort of, when you're thinking about a sequential decline in FFO?

好的。那 Mike，就你先前提到的那個指引而言，我想是指第二、第三季會出現連續下滑，然後第四季因為出售而回升 0.04 美元。那個下滑是什麼造成的？是 Cosmo 的單位移除，再加上一些營建業務的下滑，再加上其他因素嗎？還有什麼包含在其中——也就是你在思考 FFO 連續下滑時，還有哪些因素？

It's mainly going to be the increase in the share count as we get into the ATM program. So that's mainly -- we don't see any big drops. And on the Cosmo, the plan is we start with taking 10% of the units offline, is after we roll through that initial 10% is to keep 5% offline. So that we're hopefully right at the natural vacancy at that 5%.

主要會是當我們進入 ATM 計畫時，流通股數增加所致。所以主要是——我們不認為會有任何大幅下滑。至於 Cosmo，計畫是先讓 10% 的單位暫時下線；在完成最初那 10% 的輪替之後，會維持 5% 的單位下線。這樣我們希望能大致維持在 5% 的自然空置率。

So if you guys don't issue shares under the ATM, then there shouldn't be a sequential drop in earnings?

所以如果你們沒有透過 ATM 發行股票，那麼獲利就不應該出現季對季下滑？

Well, it depends on if we sell something and lose the NOI associated with that sale.

嗯，這要看我們是否出售了某些資產，並因此失去該出售所對應的 NOI。

Okay. And then remind me, the capital needs for 2018 and the guidance. Does it anticipate either the purchase or the sale of Point Street or Annapolis Junction out of the mezz pool? They stay in the mezz pool for the full 2018?

了解。再請你提醒我一下，2018 年的資本需求與指引。是否預期會從夾層貸款池（mezz pool）中買入或賣出 Point Street 或 Annapolis Junction？它們在 2018 年會全年度都留在夾層貸款池裡嗎？

Correct.

正確。

Okay. And then -- in addition to Cosmo, anything else that you guys are nearing redevelopment of at this point in the portfolio?

好的。另外——除了 Cosmo 之外，你們目前在投資組合中，還有其他接近要進行重建／再開發的項目嗎？

No. That's pretty much it. Cosmo is a bit of a special case. Like I said, when you have the market leader, you really can't sit on your laurels. We've got to continue to have that wow people in order to get those kinds of rents.

沒有。大致就只有那個。Cosmo 算是比較特殊的案例。就像我說的，當你是市場領導者時，你真的不能躺在功勞簿上。我們必須持續帶給人「哇」的感覺，才能收得到那樣的租金。

But nothing in the retail portfolio that you guys are thinking about doing any substantial redevelopment of or anything like that at this point?

但在零售投資組合方面，目前你們沒有在考慮做任何大規模的重建／再開發或類似的事情嗎？

Well, as you know, we purchased the 2 centers adjacent to Town Center with an eye towards redevelopments and we continue to work on various schemes with the tenant center there as well as the city. And ultimately, those will be done but that is not imminent. We also -- as we've been telling you folks for a while, our old outdated Kroger in Waynesboro, Virginia that we had anticipated that Kroger wouldn't renew that. They are not going to renew it, so we'll be redeveloping that. We actually have some tenants that are looking at that now. But other than that, that's really pretty much it. I think you're going to see that CapEx go down pretty noticeably next year, but for the continuing of the Cosmo.

嗯，如你所知，我們買下了 Town Center 旁邊相鄰的兩個中心，當時就是著眼於未來的再開發；我們也持續與那裡的主要承租戶以及市政府就各種方案進行推進。最終會做，但不是迫在眉睫。我們也——正如我們跟各位說了一段時間——我們在維吉尼亞州 Waynesboro 那家老舊的 Kroger，我們原本預期 Kroger 不會續約；他們確實不會續約，所以我們會對那個據點進行再開發。其實現在已經有一些租戶在評估了。但除此之外，真的差不多就這些。我想你會看到明年的資本支出（CapEx）會相當明顯地下滑，但 Cosmo 的持續投入除外。

Our next question is from Jamie Feldman with Bank of America Merrill Lynch.

下一個問題來自美國銀行美林（Bank of America Merrill Lynch）的 Jamie Feldman。

This is Kim Hong on for Jamie. I think someone already asked this question on the spike in TIs this quarter for the office lease, but can you just talk broadly about across your markets, what the general rent growth is? And how TI and concession trends are trending for both the Office and Retail segments?

我是代 Jamie 提問的 Kim Hong。我想之前有人已經問過本季辦公室租約 TI 大幅上升的問題，但你能否更廣泛地談談你們各個市場的整體租金成長概況？以及辦公室與零售兩個部門的 TI 與讓利（concession）趨勢目前如何？

Sure. Well, on the Office side, it's a pretty small microcosm of what's going on in the market. I wouldn't want to comment on a macro level here. We have -- here at Town Center, we have an 800,000 square-foot Office portfolio that stays pretty much fully leased since -- for the last 15 years. Spreads are good. You see this, this past quarter. We're a few percent on the positive side on a cash basis. And we think that they'll continue to be good. And again, that's a very small demographic, right. We have very few square feet left to lease and so we can be -- on one hand, we can be pretty selective and pretty stiff on the pricing. On the other hand, it'd be nice to have it gone. So it's kind of too small of a market sample to make any general statement.

當然。辦公室方面，這其實只是市場現況的一個很小縮影。我不想在這裡做宏觀層面的評論。我們——在 Town Center 這裡，我們有 80 萬平方英尺的辦公室投資組合，過去 15 年幾乎一直維持滿租。租金價差（spreads）不錯，你在本季也看得到。以現金基礎來看，我們是正向的幾個百分點。我們認為未來也會持續良好。再說一次，這是一個非常小的樣本，對吧。我們剩下可出租的面積很少，所以一方面我們可以相當挑選、在定價上也可以很強勢；另一方面，能把它租出去也很好。所以這個市場樣本太小，無法做出任何一般性的結論。

Okay. And is it the same case for Retail?

了解。那零售也是同樣的情況嗎？

So Retail is a bit broader. Our retail centers are throughout the mid-Atlantic. And again, these -- this portfolio is predominantly anchored by either grocery centers, home improvement centers or discounts -- discounters. Those -- that makes a large part of the NOI very stable, number one, but not growing very fast, number two. When you take the rest of the occupancy, I think, Mike said that occupancy on the retail is somewhere around 97%. There just isn't enough movement to create. But perhaps a comment on a trend. We had significantly higher releasing spreads this past quarter. That has been the norm. At the same time, it's a small enough market sample that one renewal or less could skew the results the other way. For us, that underlying strength in the retail center is what gives us an awful lot of stability over which we can do our development business. And that's the way it's been designed, as we've mentioned on numerous occasions. And the depths of the Great Recession, the occupancy in those centers went all the way down to 92%. And that's what it's constructed for, not so much the growth, but the stability to keep that dividend well covered.

零售的範圍更廣一些。我們的零售中心分布在大西洋中部（mid-Atlantic）各地。同樣地——這個投資組合主要由雜貨型中心、居家修繕中心或折扣零售商（discounters）作為主力店（anchor）。這些——第一，使得 NOI 的很大一部分非常穩定；第二，但成長速度不快。至於其餘的出租率，我想 Mike 說零售的出租率大約在 97%。變動不夠大，難以帶來更多成長。不過若要評論趨勢：我們本季的續租價差顯著提高，這一直是常態。同時，樣本仍然小到只要多一筆或少一筆續約，就可能把結果往另一邊拉。對我們而言，零售中心的底層強度，正是帶來大量穩定性的基礎，讓我們能在其上進行開發業務。這也是我們多次提到的設計方式。在大衰退最嚴重的時期，這些中心的出租率一路降到 92%。它的結構設計重點不在成長，而在穩定性，以確保股利有充分保障。

Got it. And it seems like next year, you have some expirations both in the Office and Retail portfolios. Can you speak about any future move-out risks in those portfolios and any progress on backfilling the major vacancies? I know you spoke about the 3 chunks in the Town Center.

明白。看起來明年你們在辦公室與零售投資組合都有一些到期租約。你能談談這些投資組合未來可能的退租風險，以及主要空置面積的回填進度嗎？我知道你提到 Town Center 的 3 個區塊。

So in the -- again, in the office portfolio, on a relative basis, it's pretty small. We've got a couple more lawyers that are left to downsize. Each lawyer in Town Center has renewed and taken less space. Our expectation is that's what's going to happen on the 2 remaining that roll over next year, although those are on a smaller square-foot basis, so the impact won't be as great. The other major office tenants, we're already in discussions for renewals. So again, we're -- the expectation is that the occupancy -- office occupancy at Town Center is going to be in the mid-90s through a combination of those events. As far as the Retail, today we don't see anybody giving up their space. We do have interest from a couple of larger tenants that want to buy their space. We'd rather see -- not see that happen, but they'll have the ability to do that. Right now, we're not seeing anybody making noise as if they would like to leave. Of course, things change. It's a rapidly changing landscape and we need to stay on top of it.

就——再說一次，辦公室投資組合相對而言規模很小。我們還有幾家律師事務所準備縮減面積。Town Center 的每一家律師事務所續約時都租了更少的空間。我們預期明年到期的剩下兩家也會如此，雖然它們的面積基數較小，因此影響不會那麼大。其他主要辦公室租戶，我們已經在洽談續約。所以同樣地，我們的預期是——透過這些事件的組合，Town Center 的辦公室出租率將維持在 90% 中段。至於零售方面，目前我們沒有看到任何人要放棄他們的空間。我們確實收到幾個較大型租戶的興趣，他們想把自己的空間買下來。我們寧可——不要發生，但他們會有能力這麼做。就目前而言，我們沒有看到任何人有動作或表示想離開。當然，情況會變。這是一個快速變動的環境，我們必須持續掌握。

Okay. And the last one is on the pre-leasing progress, on the delivered but not yet stabilized assets. I think there are 2 of the them and they are scheduled to deliver this year. So just wondering what the progress is on that. And I've noticed that you've added some projects to those development pipeline as well, so could you speak to the new ones too?

好的。最後一題是關於預租（pre-leasing）進度：針對已交付但尚未穩定（delivered but not yet stabilized）的資產。我想有兩個，而且預計今年交付。所以想了解目前進度如何。另外我也注意到你們在開發管線中新增了一些專案，也能請你談談新的專案嗎？

Yes, so on the office deliveries, the office delivery for this year is the City Center in Downtown Durham. With the signing of the WeWork lease, the office space is sitting -- there's about 13,000 or 14,000 square feet left to lease beyond Duke and WeWork. Our hope is that it's going to be leased by the time we open. On the retail side, there's about 20,000 square feet of retail there. And it's about half spoken for so far. But we are optimistically thinking that, that building is going to open pretty much full. That is it for the office deliveries of this year. The Multifamily, I'm not sure if that was part of your question or not. The Multifamily projects, Annapolis Junction at Fort Meade and Harbor Point at Baltimore's Inner Harbor, both of those now have delivered, are in lease-up. And we're extremely pleased with those Multifamily projects and their rate of lease-up at this point. The few projects that were added -- I'm sorry, go ahead.

好的，關於辦公室交付，今年的辦公室交付是位於達勒姆市中心（Downtown Durham）的 City Center。隨著 WeWork 租約簽訂，除了 Duke 和 WeWork 之外，辦公室空間大概還剩 13,000 或 14,000 平方英尺待出租。我們希望在開幕前就能租出去。零售方面，那裡大約有 20,000 平方英尺的零售面積，目前大概已有一半被預訂。但我們樂觀地認為，那棟建築開幕時基本上會接近滿租。以上就是今年的辦公室交付。至於多戶住宅（Multifamily），我不確定這是否在你的問題範圍內。多戶住宅專案方面，位於 Fort Meade 的 Annapolis Junction，以及位於巴爾的摩內港（Inner Harbor）的 Harbor Point，這兩個現在都已交付，正在招租（lease-up）。我們對這些多戶住宅專案以及目前的招租速度非常滿意。至於新增的幾個專案——抱歉，請繼續。

Sorry. I was talking about the Brooks Crossing and the Lightfoot Marketplace. So the 2 retail assets.

抱歉。我剛剛是在談 Brooks Crossing 和 Lightfoot Marketplace，也就是那兩項零售資產。

Yes, so Brooks Crossing is -- that is a small center that is a part of a large public-private venture with the City of Newport News. We're under construction with 100,000 square feet of office that is 100% leased. But that won't deliver until the first quarter of '19. The few thousand square feet that is in the retail center there, it's an adjoining retail center, some small shop space, have a couple of tenants there that are circling. Again, our expectation is it's going to be all but full here by the end of the year. But again, it's only a 14,000, 15,000 square foot center. Lightfoot outparcels is a new project in the development pipeline that is fully spoken for with a few outparcel tenants that will break ground a little bit later this year and ultimately be delivered midway through next year. Those are 100% leased and spoken for already. And last piece is the market at Mill Creek, which is in Mount Pleasant, South Carolina. That's a Lowes anchored shopping center that we just started construction on.

是的，所以 Brooks Crossing 是——那是一個小型中心，屬於與 Newport News 市政府合作的大型公私合營項目的一部分。我們正在施工建造 100,000 平方英尺的辦公空間，且已 100% 出租。但要到 2019 年第一季才會交付。至於那個零售中心裡的幾千平方英尺——它是相鄰的一個零售中心，有一些小型店鋪空間——目前有幾位租戶正在洽談中。再次強調，我們預期到今年年底前應該幾乎會滿租。不過它畢竟只是約 14,000 到 15,000 平方英尺的中心。Lightfoot 的外圍地塊（outparcels）是開發管線中的新項目，已由幾個外圍地塊租戶全數認租，將在今年稍晚動工，並預計於明年年中交付。那些已經 100% 出租、也都已確定。最後一塊是位於南卡羅來納州 Mount Pleasant 的 Mill Creek 市集（market at Mill Creek）。那是一座以 Lowe’s 為主力店（anchored）的購物中心，我們剛開始動工。

Our next question is from Craig Kucera with B. Riley.

下一個問題來自 B. Riley 的 Craig Kucera。

As you mentioned in your prepared comments, the 2 multifamily developments in Maryland are leasing up pretty nicely, maybe even faster than expected and rents are actually pro formas. But can you give us an update on when you might convert those loans? And while it's not in your guidance, is there any chance an event would follow the 2018 for either of them?

如同你在事先準備的評論中提到的，馬里蘭州的兩個多戶住宅（multifamily）開發案出租進度相當不錯，甚至可能比預期更快，而且租金實際表現也符合預估模型（pro formas）。但你能否更新一下你們可能在何時把那些貸款轉換（convert）？另外，雖然這不在你們的指引中，但 2018 年之後，這兩個案子是否有任何機會會發生某種事件（event）？

There is that possibility, Craig. I mean, so we have -- what we've modeled is that we would be purchasing those at the end of the year. Obviously, with the pace of leasing as fast as it is, we've got to look at whether or not we would rather do that earlier. And the other piece of that, as Mike mentioned, is that we also are seeing a pretty healthy spread in what that could bring -- what those projects could open on the open market. So a lot depends on -- the analysis we look at is -- we've been talking about the spreads in our development pipeline for 5 years now. We have demonstrated how healthy those spreads are with a number of sales. The equation we look at is what it's going to cost us to have that long term on our portfolio versus the projects that are forming in a new development pipeline and would we rather fund those with those kind -- with that spread, essentially free money versus raising money in the market. If everybody would just let the stock go to $25, we wouldn't have to worry about these decisions. We would just own everything. But as the market is as it is, we want to be selective in what we do. Eric?

Craig，確實有那種可能性。我的意思是——我們目前的模型是假設在年底買下那些資產。當然，鑑於出租速度這麼快，我們必須評估是否寧可更早進行。另一個部分，如 Mike 提到的，我們也看到如果把它們拿到公開市場上，可能帶來相當健康的價差——也就是那些項目在公開市場上可能的開盤價格。很多事情取決於——我們做的分析是——我們談我們開發管線的價差已經 5 年了。我們也透過多筆出售交易證明那些價差有多健康。我們看的方程式是：把它長期放在我們資產組合裡的成本是多少，相對於新開發管線中正在形成的項目，我們是否寧可用這類——本質上是「免費的錢」——的價差去資助那些項目，而不是到市場上募資。如果大家願意讓股價漲到 25 美元，我們就不用煩惱這些決策了；我們就會全部都持有。但在目前的市場狀況下，我們希望在要做的事情上更有選擇性。Eric？

Yes, there's -- I would just add one thing to that. There's an interesting narrative, I think, that's prevalent in the multifamily space right now, which is some of the larger institutional money is willing to take market -- submarket-specific and asset-specific lease-up risk in exchange for taking interest rate risk off the table by investing in a multifamily development and facing 3 -- potential 3 years, maybe 3 years plus of interest rate risk. So those buyers are willing and very interested to look at strong assets with strong lease-up trajectory that are in the -- as well as 25%, but certainly in the 50% plus preleased arena. That combined with all of the money that flowed into the bridge loan space is providing the capital that's allowing these institutional buyers to bridge that purchase leases up and then permanent debt. And so what we're seeing and hearing across the multifamily space, again for high-quality products, is that, that discount you may take as a seller has compressed to as low as, in some cases, 25 basis points or so. So I think it's necessary and prudent for us to look at that sale option given those dynamics in that space, to Lou's point, relative to bringing it on balance sheet, as attractive as some of those sale opportunities are prior to full lease-up.

是的——我只想再補充一點。我認為目前在多戶住宅領域有一個很有意思、也相當普遍的敘事：一些較大型的機構資金願意承擔市場——特定子市場（submarket）與特定資產的出租爬坡（lease-up）風險，以換取透過投資多戶住宅開發案，把利率風險從桌面上移除；因為這類投資會面臨 3 年——可能 3 年、甚至 3 年以上的利率風險。因此，這些買方願意、也非常有興趣去看那些資產體質強、出租爬坡軌跡強的項目——不只是 25% 的預租（preleased），當然也包括 50% 以上預租的區間。再加上大量資金流入過橋貸款（bridge loan）領域，提供了資本，讓這些機構買方得以在收購後把出租補齊，然後再轉為永久性債務（permanent debt）。因此，我們在多戶住宅市場看到與聽到的是——再次強調，針對高品質產品——作為賣方你可能需要承受的折價已經收斂，在某些情況下低到大約 25 個基點左右。所以在這個領域的動態之下，我認為我們有必要、也很審慎地去評估出售選項；如 Lou 所說，與把它納入資產負債表相比，在尚未完全滿租之前，某些出售機會確實相當具吸引力。

Got it. And I guess, when you think about, sort of, that current environment, looking down the road, does that make you more inclined to maybe control more multifamily development off balance sheet through the mezzanine lending opportunities? Are you maybe going to focus more on that line of business on the Whole Foods development?

了解。那我想，當你們思考這種當前環境、並往後看時，這是否會讓你們更傾向於透過夾層融資（mezzanine lending）的機會，在資產負債表外控制更多多戶住宅開發？你們是否可能更聚焦在 Whole Foods 開發案那條業務線？

I'd say both. So the model is very successful on both sides. On the Whole Foods side, that is more of a traditional mezz opportunity, where you are trying to simply make money on your mezz as well as leverage your construction company and a very good partner. Ultimately, with Whole Foods trading, as we've seen them as low as sub 5 cap rates, we probably would not end up acquiring those. And we'll see how that pipeline rolls out once Amazon Whole Foods starts accelerating the expansion. On the multifamily side, those opportunities continue to exist. We're seeing -- what's coming in the new pipeline is extremely exciting for us, because it's right in our wheelhouse, where we can bring the maximum amount of our expertise to bear in a mixed-use facilities, in highly dense areas, combining multifamily as well as retail and office. Those are the assets that we really want to have. Those have stood the test of time for a very long time. And so we'll see. We'll see where that ends up. But the mezz program will continue in some form or fashion across the product types.

我會說兩者都會。這個模式在兩邊都非常成功。在 Whole Foods 這一側，它更像是傳統的 mezz 機會，你的目標是單純在 mezz 上賺錢，同時也能運用你的營造公司以及一個非常好的合作夥伴。最終，考量到 Whole Foods 的交易水準——我們看到它們的資本化率（cap rates）低到 5% 以下——我們可能不會去收購那些資產。至於 Amazon Whole Foods 開始加速擴張後，那條管線會如何展開，我們會再觀察。在多戶住宅這一側，那些機會仍然存在。我們看到——新管線進來的案子讓我們非常興奮，因為正好是我們的強項所在：在高密度區域的複合用途（mixed-use）設施中，結合多戶住宅以及零售與辦公，讓我們能把專業能力發揮到最大。那些才是我們真正想持有的資產；它們長期以來都經得起時間考驗。所以我們會再看看——看看最後會走到哪裡。但 mezz 計畫會以某種形式持續橫跨各種產品類型。

Got it. And one more from me. Just going to the office side, I think, you have 3 art institutes that are expiring next year. I guess, I'd be curious as to any update on any discussions. Have you started them and, sort of, can you handicap what you think -- whether or not they're going to renew?

了解。再問我最後一個。回到辦公室這一塊，我想你們有 3 個 Art Institutes 的租約明年到期。我想知道目前討論進度如何：你們是否已經開始談了？以及你能否大致評估一下——它們是否會續約？

Yes, I -- if I were to bet today, I'd say they're all going to renew. We're already in discussions for the one here at Town Center. So that -- we think they're doing pretty well in our locations, and we're not hearing any noise about anything other than renewing. Again, it's somewhat early, but it looks positive so far.

是的，我——如果今天要我下注，我會說它們都會續約。我們已經就 Town Center 這裡的那一個開始討論了。所以——我們認為它們在我們的據點經營得相當不錯，而且我們沒有聽到任何其他聲音，除了續約之外。當然，現在還算早，但目前看起來是正面的。

Our next question is from Bill Crow with Raymond James.

下一個問題來自 Raymond James 的 Bill Crow。

Lou, on the anticipated increase in the construction backlog, you talked about some mixed-use projects in larger markets. Just wondering if you could give us any examples of maybe some of the markets that you're looking at either expanding in or maybe entering for the first time?

Lou，關於你提到預期營造在手訂單（construction backlog）會增加，你談到一些位於較大市場的複合用途項目。想請你舉一些例子，說明你們正在考慮擴張到哪些市場，或是可能首次進入哪些市場？

Sure. And again, 2 different things. The construction contracts that we are close to signing are not -- don't quite overlap with what we're talking about in the new pipeline. The construction contract, some of them are local and some of them are as far afield as Baltimore and all the way down to Atlanta. As far as what we're looking at...

當然。再說一次，這是兩件不同的事。我們接近簽約的營造合約，並不——不太與我們在新管線中談的內容重疊。營造合約方面，有些在本地，有些遠至巴爾的摩（Baltimore），一路往南到亞特蘭大（Atlanta）。至於我們正在看的……

Which is the same geographic area that you've kind of focused on historically from a construction perspective?

也就是你們從營造角度歷來聚焦的同一個地理區域？

Correct, correct. As far as the -- as far as what's developing in the pipeline, those large areas that we're looking at, again, it's kind of more of the same. It's Baltimore, it's Raleigh-Durham, it's Charlotte and it's Atlanta. And we're looking forward to making some announcements soon in all of those locations.

沒錯，沒錯。至於——至於管線中正在開發的部分，我們關注的那些大型區域，同樣也算是老地方。包括巴爾的摩、Raleigh-Durham、夏洛特（Charlotte）以及亞特蘭大。我們也期待很快能在所有這些地點發布一些公告。

Maybe, Mike, for you. The Cosmo investment, is there a return expected on that investment? Or is this more defensive in nature, just trying to maintain the competitive nature and maintain -- I think you talked about rents kind of staying flat. Is it fair to think of this as more defensive spending?

也許吧，Mike，對你而言。關於 Cosmo 的投資，這項投資是否預期會有回報？還是這比較偏防禦性質，只是想維持競爭力並維持——我想你提到租金大致持平。把這視為較偏防禦性的支出，這樣想合理嗎？

Well, I would say it's a combination of both. I think the main part of renovations is the kitchens and flooring, which certainly has changed and you want to keep that there. And we certainly would like to -- you can pick up the -- you can pick up a nice return on that investment by having occupancy in the high 90s versus the low 90s. But I'm hopeful that when you drive occupancy, it gets up into the high 90s, then we can start pushing rate. And we do know that in talking to the tenants, they're obviously -- they all want the new unit. So I'm hoping that they look really -- come out really well and we can drive rent.

我會說兩者兼具。我認為翻新最主要的部分是廚房和地板，這些確實已經改變了，你會想把它維持在那個水準。我們當然也希望——你可以從這項投資取得不錯的回報，因為入住率在 90% 高段（high 90s）相較於 90% 低段（low 90s）會有差異。但我也希望當你把入住率拉升到 90% 高段時，我們就能開始推升租金。我們也知道，跟租戶談的時候，他們顯然——他們都想要新的單位。所以我希望成果看起來真的——非常好，並且我們能帶動租金上升。

You think that's a fair time line? In 10, 12 years you kind of need to go in and redo multifamily at this point?

你覺得那是合理的時間軸嗎？大概每 10、12 年，你就需要進去把多戶住宅（multifamily）重新整修一次？

I think for the most part, again, the -- if you're in a mid-market property, you may not have to do as an extensive job as what we're talking about now. When you're trying to stay at the top of the market, then I think you've got to look at that every decade or so or you're not going to be at the top of the market.

我想大多數情況下，是的。再說一次——如果你是在中端市場（mid-market）的物件，你可能不需要像我們現在談的這麼大規模的工程。但當你想要維持在市場頂端時，我認為你大概每十年左右就得檢視一次，否則你就不會在市場頂端。

Yes, fair enough. And then finally from me, if we pull the $0.06 out of -- assume that doesn't recur in '19. And I know you've got some puts and takes next year and some timing issues without, I guess, giving us guidance. But do you think next year is poised to be an up year from an FFO per share, assuming you hit kind of that $1.05 this year with the full $0.06?

好的，合理。最後一個問題：如果我們把那 $0.06 從——假設 2019 年不會再發生。我知道你明年有一些正負因素與時點問題，但在不提供指引的前提下，你認為明年每股 FFO 是否有望較今年成長？前提是你今年含完整的 $0.06 大概做到 $1.05。

So great question. So Mike and I have been saying for quite a while that this pipeline, when it gets delivered, you're going to see significant NAV and earnings growth. Our expectation is that, that's exactly what you're going to see. Right? We're not changing that at all. I'd tell you that there couldn't be a better time for our business. We've been operating this model for a very long time. We've always done better in a growth economy than we have in a stagnant economy. And like I said earlier in our prepared remarks, shame on you if you can't overcome gradually rising interest rates when there's all this opportunity out there. We're not seeing any reason why we can't deliver on what we've been promising, with the delivery of the pipeline, with the assemblage of the next pipeline as well as continuing on with high-volume construction and good proceeds in the mezz program. So all systems are go for 2019.

這是個很好的問題。Mike 和我已經講了好一陣子，這條開發管線（pipeline）一旦交付，你會看到顯著的 NAV 與獲利成長。我們的預期就是你將會看到這些，對吧？我們完全沒有改變這個看法。我會告訴你，現在對我們的業務來說再好不過。我們營運這個模式已經很久了；在成長型經濟中，我們一向比在停滯型經濟中表現更好。就像我先前在準備好的發言中說的，當外面有這麼多機會時，如果你無法克服利率逐步上升，那就該檢討。我們看不出有任何理由無法兌現我們一直承諾的內容：隨著管線交付、組建下一條管線、以及持續維持高量施工與 mezz 計畫的良好回收（proceeds）。所以 2019 年一切系統都已就緒。

Our next question is from Laura Engel with Stonegate Capital Partners.

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

I just have a clarification. Again, on the mezz program, can you just -- you commented on the Whole Foods and the potential for those as far as the option to purchase. But can you comment just on the -- is the stabilization for the [Point street] in Annapolis still, let's say, first half of '19? And then at what point would you make a decision on what's the likelihood on those purchase options?

我只是想釐清一下。同樣是關於 mezz 計畫，你剛才提到 Whole Foods 以及那些標的在購買選擇權方面的可能性。但你能否評論一下——Annapolis 的 <content>[Point street]</content> 的穩定（stabilization）是否仍然預計在 2019 年上半年？另外，你們會在什麼時點做出決定，判斷那些購買選擇權的可能性有多大？

I think the likelihood is high. I mean, right now, the discussions here as people are somewhat giddy about the pace of leasing. And so, I guess, at this pace, we're going to have those decisions a lot earlier to make versus later. But our -- we have -- the management hasn't changed the guidance. Our expectation is that those will be purchased around the end of the year. And as we have alluded to, we're looking at our optionality to not do that as opposed to raising capital for the next pipeline. And we're just going to make the best decision we can at the appropriate time. It's just nice to have the backdrop of really good leasing velocity in order to make those decisions on top of.

我認為可能性很高。我的意思是，就目前而言，大家對租賃速度感到相當興奮。所以我想，以這樣的速度，我們需要做出那些決策的時間會比預期更早，而不是更晚。不過，我們——管理層並沒有改變指引。我們的預期是，這些將在年底左右被買下。正如我們先前提到的，我們也在評估我們的選擇性（optionality），也就是不去做這件事，改為為下一條管線募資。我們會在適當的時間做出我們能做的最佳決策。只是很高興有非常好的租賃動能作為背景，讓我們在此基礎上做決策。

Our next question is a follow-up from John Guinee with Stifel.

下一個問題是 Stifel 的 John Guinee 的追問。

Mike or Lou, when you do the math, obviously, if you can sell these assets at a 4.5% cap and your stocks at $11 a share, you're a seller of this -- of the assets versus an issuer of your common, but on the other hand, if the cap rate is the 6% and your stocks hit $15, you go the other way. Have you done enough analysis to understand where the breakpoint is, like where you'd rather issue equity versus sell the assets?

Mike 或 Lou，算一算顯然，如果你能以 4.5% 的資本化率（cap rate）出售這些資產，而你們的股票是每股 $11，那你會選擇賣資產，而不是發行普通股；但另一方面，如果 cap rate 是 6%，而你們的股價到 $15，你就會反過來。你們是否做了足夠的分析來了解臨界點在哪裡——也就是在哪個點你們會更願意發行股權而不是賣資產？

Yes, you're talking about where those lines cross and boy, John, I wish, that was a stagnant model. Part of that -- with just those 2 factors, those lines do cross in the 15s. But the subjective piece that you got to layer on to that is a very exciting group of opportunities that are forming behind that. And whether or not you're going to be able to sustain of raising the amount of capital needed to keep everything. And so that's kind of the mitigating factor that has us essentially waffling on what exactly we're going to do.

有，你說的是那些線在哪裡交叉。John，天啊，我真希望那是個靜態模型。就只有那兩個因素的話，那些線大概在 15 元區間交叉。但你必須再疊加一個主觀因素：在那之後，還有一組非常令人振奮的機會正在形成。以及你是否能持續募集到足夠的資本，來保留所有資產並支撐所需的資金規模。因此，這就是讓我們在到底要怎麼做之間基本上搖擺不定的緩解因素（mitigating factor）。

Ladies and gentlemen, we have reached the end of the question-and-answer session. I would like to turn the call back over to management for closing remarks.

各位女士先生，我們已到達問答環節的結束。我想把電話交回管理層作結語。

Thank you, and thanks, everyone. We appreciate your interest in our company. Look forward to updating you on our activities and results in the coming quarters. Take care.

謝謝，也謝謝各位。我們感謝你們對本公司的關注。期待在接下來幾個季度向各位更新我們的活動與成果。保重。

This concludes this conference. You may disconnect your lines at this time, and have a great day.

本次會議到此結束。您現在可以掛斷電話線，祝您有美好的一天。