AH Realty Trust, Inc (AHRT) 2019 Q1 法說會逐字稿

Welcome to Armada Hoffler's First Quarter 2019 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Thursday, May 2, 2019.

歡迎參加 Armada Hoffler 2019 年第一季財報電話會議。(接線員指示) 提醒各位，本電話會議將於今日（2019 年 5 月 2 日，星期四）錄音。

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

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

Good morning, and thank you for joining Armada Hoffler's First Quarter 2019 Earnings Conference Call and Webcast. On this call this morning, in addition to myself, is Lou Haddad, CEO.

各位早安，感謝您加入 Armada Hoffler 2019 年第一季財報電話會議與網路直播。今天早上的電話會議，除了我之外，還有執行長 Lou Haddad。

The press release announcing our first quarter earnings, along with our quarterly supplemental package, were distributed this morning. A replay of this call will be available shortly after the conclusion of the call through June 2, 2019. The numbers to access the replay are provided in the earnings press release. For those who listen to the rebroadcast of this presentation, remind you that the remarks made herein are as of today, May 2, 2019, and will not be updated subsequent to this initial earnings call.

我們今早已發布第一季財報新聞稿，並同時提供季度補充資料包。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 2019 年 6 月 2 日。重播的撥入號碼已載於財報新聞稿。對於收聽本次簡報重播的聽眾，提醒您：本次發言內容以今日（2019 年 5 月 2 日）為準，且在本次初次財報電話會議之後不會更新。

During this call, we will make forward-looking statements, including statements related to the future performance of our portfolio, our development pipeline, impact of acquisitions and dispositions, our mezzanine program, 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.

在本次電話會議中，我們將發表前瞻性陳述，包括與我們投資組合未來表現、開發案儲備（pipeline）、收購與處分的影響、夾層融資計畫（mezzanine program）、營造業務（Construction business）、投資組合績效與融資活動，以及對我們指引與展望的評論等相關陳述。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。

The 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 and documents we have filed with are furnished to the SEC.

這些風險與不確定性可能導致實際結果與我們目前預期出現重大差異；我們建議聽眾查閱我們今早新聞稿中揭露的前瞻性陳述，以及我們向 SEC 申報或提交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（normalized FFO）。這些非 GAAP 指標的定義，以及與最可比 GAAP 指標的調節表，均收錄於季度補充資料包中，可於我們網站 armadahoffler.com 取得。

I will now turn the call 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. As you will hear from our discussion this morning, we have a lot going on here at Armada Hoffler. The positive momentum we've built over the past few years is starting to manifest in a variety of ways across our multifaceted business platform.

謝謝你，Mike。各位早安，感謝今天加入我們。如同各位將在今天早上的討論中聽到的，Armada Hoffler 目前有許多進展。我們過去幾年累積的正向動能，正開始在我們多元化的業務平台上以各種方式展現。

A great example of one of our strategies, the acquisition of Prominent Properties through the issuance of OP units, was highlighted in our press release from a couple of days ago. Before I comment on our operating performance and update you on development pipeline progress, I'll address the highlights of this acquisition.

我們策略的一個絕佳例子——透過發行 OP 單位（OP units）收購 Prominent Properties——已在我們兩天前的新聞稿中重點說明。在我評論營運表現並向各位更新開發案儲備進度之前，我先說明這項收購的重點。

These centers are located in our home city of Virginia Beach and are well known to us. The high sales volume of the various retailers, high occupancy over an extended period of time and a history of upwardly trending rents and NOI make these high barrier to entry properties worthy additions to our stabilized portfolio. Simply put, this is some of the best real estate in the entire Norfolk/Virginia Beach MSA.

這些購物中心位於我們的家鄉城市維吉尼亞海灘（Virginia Beach），我們非常熟悉。各零售商的高銷售量、長期維持的高出租率，以及租金與 NOI（淨營運收入）呈上升趨勢的歷史，使這些高進入門檻資產成為我們穩定型投資組合的優質補充。簡而言之，這是整個 Norfolk／Virginia Beach 都會統計區（MSA）中最優質的不動產之一。

Financially, the acquisition is extremely positive in virtually every respect. The purchase price of $105 million equates to a 7.7 cap rate, which is significantly above our cost of capital, substantially below market value and is accretive to FFO by some $0.03 on an annualized basis. The issuance of 4.1 million OP units at a price of $15.55 will make this acquisition even more attractive to the company. With over $8 million of NOI against $36 million of assumed debt, the acquisition further reduces our corporate debt-to-EBITDA ratio.

就財務面而言，這項收購幾乎在各方面都極為正面。1.05 億美元的收購價格相當於 7.7% 的資本化率（cap rate），顯著高於我們的資金成本，亦大幅低於市值，並可在年化基礎上使 FFO 增加約 0.03 美元。以每單位 15.55 美元發行 410 萬個 OP 單位，將使這項收購對公司更具吸引力。在承接 3,600 萬美元債務的情況下，對應超過 800 萬美元的 NOI，此收購亦進一步降低我們的公司層級淨負債對 EBITDA 比率。

Perhaps most importantly, the transaction establishes the developers of these centers, Venture Realty Group, as significant equity owners in our company. This group has a long-standing reputation as top quality developers in our home region. We look forward to the opportunity to collaborate with these professionals on other exciting engagements.

或許最重要的是，這筆交易使這些購物中心的開發商 Venture Realty Group 成為我們公司的重要股權持有人。該團隊在我們家鄉地區長期以來享有頂尖開發商的聲譽。我們期待未來有機會與這些專業人士在其他令人振奮的合作案上攜手合作。

While the acquisition will lead to a temporary spike in the percentage of NOI contribution from the traditional retail portion of our portfolio after the current development pipeline stabilizes, we expect that percentage to settle back into the 40% range. As we have said on numerous occasions, well-located high-volume retail will remain a significant part of our growth strategy. We expect these 2 properties will generate significant organic NOI growth for many years to come.

雖然在目前開發案儲備完成穩定化之前，這項收購將使我們投資組合中傳統零售部分的 NOI 貢獻占比短期出現上升，但我們預期該占比最終將回落至約 40% 的區間。正如我們多次提到的，地點優越且銷售量高的零售資產仍將是我們成長策略的重要一環。我們預期這兩項資產將在未來多年帶來顯著的有機 NOI 成長。

All that said, we've left our guidance unchanged at this time. While the trend is obviously positive, there are too many unknowns to accurately adjust our range of $1.11 to $1.17 just yet. As you can see from our earnings press release, same-store NOI has increased for 4 consecutive quarters, and total NOI is significantly higher than previously forecast. However, these increases may be offset in the short term by a somewhat slower pace of third-party construction and consequently, a slower ramp-up of the mezzanine loans on the Interlock projects.

儘管如此，我們目前仍維持指引不變。雖然趨勢顯然正向，但目前未知因素仍多，尚難以精準調整我們 1.11 至 1.17 美元的區間。如各位從財報新聞稿所見，同店 NOI 已連續 4 個季度成長，且總 NOI 明顯高於先前預測。然而，短期內這些增幅可能會被第三方營造工程進度略為放緩所抵銷，進而導致 Interlock 專案的夾層貸款（mezzanine loans）放款爬坡速度較慢。

Please note that these potential adjustments in our ancillary income streams are only a result of timing differences. We believe that the contracts and loans will ultimately yield the amount of profit that we anticipated. We expect to be able to fine tune these projections as well as the timing of the closing on the recently announced Virginia Beach acquisition, by the end of this quarter.

請注意，這些對我們附屬收入來源（ancillary income streams）的潛在調整僅源於時點差異。我們相信，相關合約與貸款最終將產生我們原先預期的利潤水準。我們預期在本季末前，能更精準地調整這些預估值，以及近期宣布的維吉尼亞海灘收購案完成交割的時程。

While we are mindful of the need for clarity and annual earnings projections, as most of you know, our focus is on the long-term growth of our portfolio NAV and commensurate increases in per share FFO and steadily increasing dividends.

雖然我們理解市場對清晰度與年度獲利預測的需求，但如各位所知，我們的重點在於投資組合淨資產價值（NAV）的長期成長，以及相應的每股 FFO 提升與股利的穩定增加。

Let's move on to the development pipeline starting with the most recent delivery. The Brooks Crossing office building in Newport News, Virginia, was delivered on time and rent has commenced on the entire 100,000 square feet. The Market at Mill Creek near Charleston, South Carolina, was delivered on time and the early returns for the opening of the Lowes Foods were spectacular, with early sales amongst the best in the history of the chain. The center is now 93% leased.

接下來談開發案儲備，先從最新交付的專案開始。位於維吉尼亞州紐波特紐斯（Newport News）的 Brooks Crossing 辦公大樓已如期交付，且全棟 100,000 平方英尺均已開始計租。位於南卡羅來納州查爾斯頓（Charleston）附近的 The Market at Mill Creek 亦如期交付；Lowes Foods 開幕的初期回饋非常亮眼，早期銷售表現為該連鎖品牌史上最佳之一。該中心目前出租率為 93%。

The multifamily projects currently lease up are highlighted by 1405 Point at Baltimore's Inner Harbor, which now stand at 98% leased. From delivery to full occupancy in roughly 12 months, the performance of this project reaffirms our confidence in the entire Harbor Point development.

目前正在招租中的多戶住宅（multifamily）專案，以巴爾的摩內港（Inner Harbor）的 1405 Point 最為突出，目前出租率達 98%。從交付到約 12 個月內達到滿租，該專案的表現再次強化我們對整個 Harbor Point 開發案的信心。

Construction continues on our adjacent Wills Wharf office building. And despite being nearly a year from delivery, we're seeing robust leasing activity. Inclusive of 2 additional tenants in lease negotiation, pre-leasing now stands at nearly 70%.

我們相鄰的 Wills Wharf 辦公大樓仍在持續施工中。儘管距離交付仍將近一年，我們已看到強勁的招租活動。若包含另外 2 家正在洽談租約的租戶，目前預租率已接近 70%。

The Premier at the Virginia Beach Town Center is 92% leased on the multifamily side with the retail at 76%. The Greenside Apartments in Charlotte continue to lease on track with our projections and stand at 73%. Construction is nearing completion on the 2 Charleston student housing projects and pre-leasing is in full swing.

位於維吉尼亞海灘市中心（Town Center）的 Premier 多戶住宅部分出租率為 92%，零售部分為 76%。夏洛特的 Greenside Apartments 持續依照我們的預測進行出租，目前出租率為 73%。查爾斯頓的兩個學生住宅專案施工已接近完工，預租正如火如荼進行中。

The King Street development, Hoffler Place, is the furthest along and was pre-leasing nearly 50% -- nearing 50%, we anticipate an on-time delivery with first-year occupancy in the 75% range. The second project, Summit Place on Meeting Street is on a similar delivery schedule. However, the facility lies in an opportunity zone. And although that didn't factor in our original underwriting, the newly published IRS regulations pertaining to this federal incentive program apparently allow for this nearly completed facility to qualify for opportunity zone investment as long as it's not placed in service.

King Street 的開發案 Hoffler Place 進度最為超前，預租已接近 50%——接近 50%，我們預期可如期交付，首年入住率約在 75% 的區間。第二個專案 Meeting Street 的 Summit Place 交付時程相近。不過，該設施位於機會區（opportunity zone）。雖然這並未納入我們原先的承銷假設，但新公布的 IRS（美國國稅局）針對此聯邦獎勵計畫的法規，顯然允許這座幾近完工的設施在尚未投入使用（placed in service）的情況下，符合機會區投資資格。

We've been in contact with several groups who have raised funds to invest in qualifying development. Due to these discussions, along with the lease-up proceedings slower-than-expected, we believe it to be in the best interest of the company to pause construction while we explore how best to take advantage of this new information. This delay may necessitate bringing the project online for the 2020 school year, instead of this coming fall. With this uncertainty, we have conservatively excluded any impact from this project from our guidance. We will keep you posted as the situation develops.

我們已與數個已募資、準備投資於符合資格開發案的團體保持聯繫。基於這些討論，以及出租進度較預期緩慢，我們認為為了公司最佳利益，應暫停施工，以便我們評估如何最有效地運用這項新資訊。此延遲可能使專案改為在 2020 學年上線，而非今年秋季。在此不確定性下，我們已保守地在財測指引中排除該專案的任何影響。隨著情勢發展，我們會持續向各位更新。

In any event, we remain confident in our initial underwriting and the long-term value of this asset.

無論如何，我們仍對最初的承銷假設以及該資產的長期價值充滿信心。

With 4 projects underway, the greater Charleston market and 2 more exciting development opportunities on the horizon, we are fully committed to a long-term presence in this dynamic growing market.

目前有 4 個專案正在進行中，加上大查爾斯頓市場以及未來還有 2 個令人振奮的開發機會，我們完全致力於在這個充滿活力且持續成長的市場建立長期布局。

The final project in our development pipeline, Nexton Square, a lifestyle center in which we have invested through a mezzanine loan and hold a discounted purchase option is also in the Greater Charleston market.

我們開發案管線中的最後一個專案 Nexton Square，是一座生活風格中心（lifestyle center）。我們透過一筆夾層貸款（mezzanine loan）投資，並持有一項折價購買選擇權；該專案同樣位於大查爾斯頓市場。

Although final construction completion won't occur until later this year, the first handful of tenants will open this quarter and leasing already stands at 70%. With the majority of our pipeline delivered or nearing completion, our development group is hard at work underwriting a number of new opportunities. Although deal flow is at an all-time high, we remain committed to keeping our new development run rate in the $150 million to $200 million range over an 18-month time frame.

雖然最終施工完工要到今年稍晚才會發生，但首批幾位租戶將於本季開幕，目前出租率已達 70%。隨著我們管線中的多數專案已交付或接近完工，我們的開發團隊正全力投入多項新機會的承銷評估。儘管案源量創歷史新高，我們仍致力於在 18 個月期間內，將新開發的年化節奏（run rate）維持在 1.5 億至 2 億美元的區間。

This discipline helps to ensure that only the most promising projects are selected for development. Currently, a couple of mixed-use urban infill projects appear to be the centerpieces of the next round. We hope to announce new products by summer's end.

這項紀律有助於確保只挑選最具前景的專案進行開發。目前，數個混合用途的都會填充型（urban infill）專案似乎將成為下一輪的核心主軸。我們希望在夏末前宣布新產品。

The core portfolio continues to show robust performance with increases in both occupancy and same-store NOI. Re-leasing spreads, particularly in the retail sector, continue to climb meaningfully. Most notably, the upgrades to the units at the Cosmopolitan apartments in Town Center continues to receive rave reviews from our tenants. Newly refreshed apartments are leasing at a 7% to 10% premium to the same unimproved units. Due to this success, we've decided to accelerate the pace of construction by taking a larger number of units off-line in each phase. Although this will reduce NOI in the short term, overall construction phase duration will be shortened and 2020 income should be higher than previously anticipated.

核心投資組合持續展現強勁表現，入住率與同店 NOI（淨營運收入）皆有所提升。續租租金價差（re-leasing spreads）持續顯著攀升，尤其是在零售領域。最值得一提的是，Town Center 的 Cosmopolitan 公寓單位升級改裝持續獲得租戶高度好評。新翻新的公寓出租價格較同類未改善單位溢價 7% 至 10%。由於成效良好，我們決定加快施工節奏，在每個階段讓更多單位暫時下線施工。雖然短期內將降低 NOI，但整體施工階段的期間將縮短，且 2020 年收入應高於先前預期。

The construction group continues to perform at a very high level. On-time completion of the Brooks Crossing office building and the Market at Mill Creek highlighted the quarter. We also continue to track scheduled completion for the rest of the development pipeline. The value of controlling the construction of our development properties cannot be overstated. Offering dependable delivery dates to our tenants gives us a meaningful advantage over our peer group. Similarly, control of the construction process gives us the confidence to pursue the mezzanine lending strategy that has led to significant cash generation, thereby substantially reducing our reliance on the capital markets to fund our portfolio growth.

施工團隊持續維持非常高的表現水準。Brooks Crossing 辦公大樓與 Market at Mill Creek 的如期完工成為本季亮點。我們也持續追蹤其餘開發管線的預定完工進度。掌控自有開發物件的施工價值再怎麼強調都不為過。能向租戶提供可靠的交付日期，使我們相較同業具有顯著優勢。同樣地，對施工流程的掌控也讓我們有信心推動夾層放款策略，該策略帶來可觀的現金創造，從而大幅降低我們對資本市場為投資組合成長提供資金的依賴。

Reliable construction time frames are also a large factor in our team selection by third-party clients on a repeat basis, which solidifies the steady fee income that we have enjoyed for a number of years. While the ramp-up on several new construction starts will have the profits from this division back weighted towards the second half of the year, we're confident that the income will be well within our guidance range.

可靠的施工時程也是第三方客戶反覆選擇我們團隊的重要因素，進一步鞏固了我們多年來享有的穩定費用收入。雖然多個新開工案的爬坡期將使本部門獲利偏向下半年，但我們有信心其收入將完全落在我們的指引區間內。

Third-party backlog stands at $161 million with several new potential engagements in the preconstruction phase.

第三方在手訂單（backlog）為 1.61 億美元，且有數個潛在新案正處於施工前（preconstruction）階段。

Now I will turn it over to Mike to give some specifics on the quarter.

接下來我把時間交給 Mike，請他說明本季的一些具體細節。

Thanks, Lou. Today, I want to cover the highlights of the quarter, thoughts on our balance sheet and our 2019 guidance.

謝謝你，Lou。今天我想說明本季重點、我們對資產負債表的看法，以及 2019 年的財測指引。

This quarter we updated our supplemental package, which we hope gives you more insight into the company. This morning we reported FFO of $0.25 and normalized FFO of $0.27 per share for the first quarter, which met our expectations. I'll remind you that construction commenced on the Atlanta Interlock projects during the quarter, the mezzanine interest income and construction fees will be back-end weighted to the second half of the year.

本季我們更新了補充資料包（supplemental package），希望能讓各位對公司有更多了解。今天早上我們公布第一季每股 FFO 為 0.25 美元、每股標準化 FFO（normalized FFO）為 0.27 美元，符合我們的預期。提醒各位，本季亞特蘭大 Interlock 專案已開工，夾層利息收入與施工費收入將偏向在下半年認列。

Our core operating portfolio occupancy for the first quarter remained strong at 96% with office at 95%, retail at 96% and multifamily at 97%.

第一季我們核心營運投資組合的入住率維持強勁，達 96%；其中辦公為 95%、零售為 96%、多戶住宅為 97%。

Same-store NOI was positive for the fourth consecutive quarter with GAAP positive 2.6% and cash positive 2.4%. Most significantly, our multifamily same-store NOI was positive 9%. Additionally, our re-leasing spreads were positive again this quarter, 6.8% on a GAAP basis and 3.3% on cash. We believe these continuing positive metrics reflect our portfolio's strength.

同店 NOI 連續第四季為正，GAAP 口徑成長 2.6%，現金口徑成長 2.4%。最顯著的是，我們多戶住宅同店 NOI 成長 9%。此外，本季續租租金價差再度為正：GAAP 口徑 6.8%，現金口徑 3.3%。我們認為這些持續正向的指標反映了我們投資組合的實力。

We've been active with 3 new properties being added to our portfolio this year. As discussed, last quarter, One City Center in Durham was placed in-service in October with Duke University and WeWork occupying the building. This project was in a joint venture in which we own 100% of the commercial space. In March, the commercial space was distributed out of the joint venture and added to our portfolio along with a new loan.

今年我們相當積極，已有 3 項新物件納入投資組合。如上季所述，達勒姆的 One City Center 已於 10 月投入使用（placed in-service），由杜克大學與 WeWork 進駐。該專案為合資案，我們持有其中商業空間 100% 的權益。3 月時，商業空間自合資架構中分配出來並納入我們的投資組合，同時也新增了一筆貸款。

The initial project in our mezzanine program was the 1405 Point apartments in Baltimore's Harbor Point. As part of the mezzanine structure, we have an at-cost purchase option for 100% ownership of the building, which can be exercised in 2 phases. Last week we exercised the first purchase option for '79% ownership. We expect to exercise the second option next year, which will not require any additional capital.

我們夾層計畫的首個專案是巴爾的摩 Harbor Point 的 1405 Point 公寓。依夾層架構安排，我們擁有以成本價取得該大樓 100% 所有權的購買選擇權，可分兩個階段行使。上週我們已行使第一階段購買選擇權，取得 79% 的所有權。我們預期明年行使第二階段選擇權，且不需要任何額外資本。

And lastly, as Lou outlined, we announced the acquisitions of the 2 retail centers in Virginia Beach, which we expect to close this quarter. The total of these 3 new operating properties is approximately $250 million, which required very little cash outlay.

最後，如 Lou 所概述，我們宣布收購位於維吉尼亞海灘的 2 座零售中心，預計將於本季完成交割。這 3 項新增投入營運的不動產合計約 2.5 億美元，所需現金支出非常少。

The equity required for One City Center and 1405 Point was previously funded over the past few years within the structures. And any capital required for our leverage target is included in our 2019 ATM guidance.

One City Center 與 1405 Point 所需的權益資金，先前已在過去幾年於相關架構內完成挹注。而為達成我們槓桿目標所需的任何資本，也已納入我們 2019 年 ATM 指引。

On the construction front, we reported segment gross profit in the first quarter $750,000 on revenue of $17 million. At the end of the first quarter, the company had a third-party construction backlog of $161 million.

在營造業務方面，我們第一季在 1,700 萬美元營收下，報告分部毛利為 75 萬美元。截至第一季末，公司第三方營造在手訂單（backlog）為 1.61 億美元。

Now for an update on our mezzanine program. The payoffs of the Decatur loan is on schedule, SJ Collins signed an LOI with a publicly traded REIT of the sales of this Whole Foods center. We expect closing and loan payoff in the third quarter. As I mentioned earlier, the Interlock projects in Atlanta began construction during the quarter with site work well underway. We expect to fund these loans through the summer.

接著更新我們的夾層融資（mezzanine）計畫。Decatur 貸款的清償按計畫進行，SJ Collins 已就出售該 Whole Foods 中心與一家上市 REIT 簽署意向書（LOI）。我們預期於第三季完成交割並清償貸款。如我先前提到，亞特蘭大的 Interlock 專案於本季開始施工，場地工程進展順利。我們預期在夏季期間為這些貸款提供資金。

And now turning to our balance sheet. Over the past quarter, we have made good progress on our 2019 capital plan. Our 2019 guidance issued in February consisted of the following to hit our leverage targets for the year. First, the disposition of a grocery-anchored shopping center for expected proceeds of approximately $25 million, which we used to pay down debt. During the quarter, we listed the Lightfoot Harris Teeter Center for sale, with high level -- with the high level of interest in this center, we're now anticipating proceeds in excess of $25 million.

現在轉到資產負債表。過去一季，我們在 2019 年資本計畫上取得良好進展。我們於 2 月發布的 2019 年指引，包含以下事項以達成年度槓桿目標。第一，處分一座以超市為主力店（grocery-anchored）的購物中心，預期處分款約 2,500 萬美元，並用以償還債務。本季我們將 Lightfoot Harris Teeter Center 掛牌出售；由於該中心的高度興趣，我們目前預期處分款將超過 2,500 萬美元。

Second, we expect the Decatur Whole Foods center and Annapolis Junction loans to be paid off this year. The expected payments are approximately $60 million. The Decatur Whole Foods center is under an LOI with expected closing in the third quarter. And third, we anticipate raising $50 million through the ATM program. Taking advantage of favorable market conditions during the first quarter, we raised $30.6 million. In addition, the just announced acquisition of the 2 Virginia Beach shopping centers, which adds to equity through issuing $64 million in OP units and lowers our overall leverage ratios.

第二，我們預期 Decatur Whole Foods 中心與 Annapolis Junction 的貸款將於今年清償。預期回收款約 6,000 萬美元。Decatur Whole Foods 中心已在意向書（LOI）之下，預期第三季完成交割。第三，我們預期透過 ATM 計畫募資 5,000 萬美元。第一季把握有利的市場條件，我們已募得 3,060 萬美元。此外，甫宣布收購維吉尼亞海灘的 2 座購物中心，將透過發行 6,400 萬美元的 OP 單位增加權益，並降低整體槓桿比率。

As Lou said, we are evaluating a number of new development opportunities. We do not expect any of these to break ground until later this year, and therefore we'll require very little capital investment in 2019.

如 Lou 所說，我們正在評估多項新的開發機會。我們預期這些專案要到今年稍晚才會動工，因此 2019 年所需的資本投入非常少。

Now turning to our debt maturities. There is only one maturity in 2019, which was paid off in January. In 2020, there are 2 loan maturities, both of which are construction loans, totaling $50 million.

接著談我們的債務到期情況。2019 年僅有一筆到期，已於 1 月清償。2020 年有 2 筆貸款到期，皆為建築貸款，合計 5,000 萬美元。

The loans are for the Greenside Apartments in Charlotte and the Premier in Town Center. With the leasing activity on both projects, we have no concerns on either exercising our extension options or refinancing these projects. At the end of the quarter, we had total outstanding debt at $744 million, including $91 million outstanding under the $150 million revolving credit facility.

這些貸款分別用於夏洛特的 Greenside Apartments，以及 Town Center 的 Premier。鑑於兩個專案的出租活動，我們對於行使展期選擇權或為這些專案再融資均無疑慮。截至本季末，我們未償還總債務為 7.44 億美元，其中包含 1.5 億美元循環信用額度下已動用的 9,100 萬美元。

We continue to evaluate our exposure to potentially higher interest rates and continue to hedge our interest rate exposure. At quarter end, 97% of our debt was either fixed or hedged. With the current interest rate environment providing an opportunity, we entered into an $85 million swap lock during the quarter.

我們持續評估利率可能上升所帶來的曝險，並持續對沖利率風險。截至季末，我們 97% 的債務為固定利率或已對沖。在目前利率環境提供機會之下，我們於本季簽訂了一筆 8,500 萬美元的 swap lock（利率交換鎖定）。

Now I'd like to go through the details of our updated 2019 guidance. The assumptions of the guidance are: the sale of the Harris -- Lightfoot Harris Teeter center for anticipated proceeds of $25 million in the third quarter, acquired 79% interest of the partnership in 1405 Point apartments during the quarter, the acquisition of the 2 Virginia Beach shopping centers during the second quarter, the Decatur Whole Foods center loan being paid off during the third quarter and the Annapolis Junction loan being paid off in the fourth quarter, raising $50 million through the ATM program assuming favorable market conditions. Interest expense is calculated based on the forward LIBOR curve, which forecasts LIBOR at 2.36% at year-end.

現在我想說明更新後的 2019 年指引細節。指引假設包括：第三季出售 Harris -- Lightfoot Harris Teeter 中心，預期處分款 2,500 萬美元；本季收購 1405 Point 公寓合夥企業 79% 的權益；第二季收購維吉尼亞海灘的 2 座購物中心；第三季清償 Decatur Whole Foods 中心貸款、第四季清償 Annapolis Junction 貸款；並在市場條件有利的假設下，透過 ATM 計畫募資 5,000 萬美元。利息費用係依據遠期 LIBOR 曲線計算，該曲線預測年末 LIBOR 為 2.36%。

Our 2019 normalized FFO per share guidance of $1.11 to $1.17 per share is predicated on the following updated components: Total NOI in the $96.9 million to $97.7 million range; third-party construction gross profit in the $4.9 million to $5.7 million range; interest income from mezzanine financing program in the $15.2 million to $15.7 million range, which is net of $5.4 million of interest expense and also includes the remaining $4.5 million recognized in the amortization of the Annapolis Junction apartments purchase option; general administrative expenses in the $11 million to $11.5 million range; interest expense in the $24.7 million to $25.7 million range, which does not include the interest expense related to the mezzanine program; and 72.3 million weighted average shares outstanding.

我們 2019 年每股常態化 FFO 指引為每股 1.11 至 1.17 美元，係基於以下更新後的組成項目：總 NOI 介於 9,690 萬至 9,770 萬美元；第三方營造毛利介於 490 萬至 570 萬美元；夾層融資計畫的利息收入介於 1,520 萬至 1,570 萬美元（已扣除 540 萬美元利息費用，並包含在 Annapolis Junction 公寓購買選擇權攤銷中認列的剩餘 450 萬美元）；一般及行政費用介於 1,100 萬至 1,150 萬美元；利息費用介於 2,470 萬至 2,570 萬美元（不包含與夾層融資計畫相關的利息費用）；以及加權平均流通股數 7,230 萬股。

Now I will turn the call back to Lou.

現在我把電話交回給 Lou。

Thanks, Mike. Remember, Armada Hoffler is first and foremost an opportunistic real estate company that employs multiple strategies to enhance profitability and create value.

謝謝，Mike。請記得，Armada Hoffler 首先且最重要的是一家機會型的不動產公司，運用多元策略來提升獲利能力並創造價值。

These have been our central tenets for 40 years, and investors can count on this to remain our primary focus. As the company's largest equity holder, management will continue to operate a business model that includes a variety of deal structures as well as OP unit acquisitions, disposition of development projects, at-cost options and stable assets. We are extremely optimistic about the company's prospects for the rest of 2019 as well as our ability to deliver on our promises over a multi-year time frame.

這些一直是我們 40 年來的核心信條，投資人可以相信這仍將是我們的主要焦點。作為公司最大的股權持有人，管理團隊將持續採行包含多種交易架構的商業模式，包括 OP 單位收購、處分開發專案、按成本（at-cost）選擇權以及穩定型資產。我們對公司在 2019 年剩餘期間的前景，以及在多年期時間範圍內履行承諾的能力，感到非常樂觀。

As we begin to look toward 2020 and the number of projects we intend to deliver and stabilize, we feel strongly that our investors will continue to realize great value creation well into the future.

當我們開始展望 2020 年，以及我們計畫交付並使其穩定的專案數量時，我們深信投資人將在未來很長一段時間內持續看到可觀的價值創造。

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

接線員，我們現在想開始問答環節。

(Operator Instructions) Our first question comes from the line of Dave Rodgers with Robert W. Baird.

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

Lou, I wanted to jump into Charleston and the 2 housing projects, if we could. Looks like and sounds like you're still a little bit behind schedule in terms of the leased up on the first, and then obviously you're going to push off the second. So you gave a lot of detail in your comments, but I guess maybe dive a little bit further in terms of maybe why you weren't going to be stabilized on the smaller of the 2 projects and kind of the state of that housing market as it is today?

Lou，如果可以的話，我想直接談談查爾斯頓以及那 2 個住宅專案。看起來、聽起來第一個專案在出租率提升（leased up）的進度上仍稍微落後於時程，而第二個專案顯然你們會往後延。你在評論中提供了很多細節，但我想再深入一點：為什麼較小的那個專案不會達到穩定（stabilized），以及目前住宅市場的狀況大概是怎樣？

Dave, thanks for the question. I'll give you as much as I can. The -- our underwriting of the 2 Charleston projects was primarily based on a few factors. The market study that showed a deficit of a few thousand beds in purpose-built student housing on the Peninsula and high barrier-to-entry locations with hard-to-get entitlements in hand. Nothing has changed in that initial assessment. As I said, we're very comfortable with the long-term value in these assets. That said, we overestimated the rate of absorption for students committing to this type of housing solution while the facilities were still under construction.

Dave，謝謝你的提問。我會盡可能多提供資訊。我們對查爾斯頓兩個專案的承作（underwriting）主要是基於幾個因素。市場研究顯示，在半島地區（Peninsula）的專為學生打造之學生住宅（purpose-built student housing）床位短缺數千床，且這些地點進入門檻高、取得開發許可（entitlements）不易，而我們已取得相關許可。這些初始評估沒有任何改變。如我所說，我們對這些資產的長期價值非常有信心。不過，我們高估了在設施仍在施工期間，學生承諾選擇此類住房方案的去化速度（absorption rate）。

I thought that the benefits in hard cost savings and marketing expenses that we would reap in constructing the 2 facilities simultaneously would more than offset the potential drag of that much product coming online in one summer. Our construction company came through with flying colors as usual, and we did realize substantial savings with this approach. However, as becomes apparent, we now think the full stabilization is going to take 2 to 3 years.

我原本認為，同步興建兩個設施所帶來的硬成本節省與行銷費用節省，將足以抵銷同一個夏天大量產品同時入市可能造成的拖累。我們的營造公司一如往常表現非常出色，我們也確實透過這種做法實現了可觀的節省。然而，如今顯而易見的是，我們現在認為要完全穩定（full stabilization）將需要2到3年。

I guess, in hindsight, the wiser choice would have been to forgo the potential cost savings and stagger the deliveries by a year or 2. Responsibility for that decision is on me. We've got some time now to decide whether to transact it with another seed fund or take the second building through the lease-up phase. Either way, like I said, we feel real good about the assets and we'll move on.

事後看來，更明智的選擇應該是放棄潛在的成本節省，將交付時程錯開1到2年。這個決策的責任在我。我們現在有一些時間可以決定，是要與另一個種子基金（seed fund）進行交易，或是讓第二棟建物走完招租／去化（lease-up）階段。

Yes. I appreciate that added color, Lou. And -- I guess, sticking with multifamily, you had a big pickup in the same-store revenue and same-store NOI in the quarter for the multifamily component. What drove that? Was that rental increases at Cosmo, was it just kind of broad-based rental increases across the portfolio? Any additional color there?

是的。Lou，我很感謝你補充的這些細節。另外——我想延續多戶住宅（multifamily）的話題，你們本季多戶住宅部分的同店營收（same-store revenue）與同店NOI都有大幅提升。是什麼因素帶動的？是Cosmo的租金上調，還是整體投資組合普遍性的租金上漲？能否再多補充一些細節？

Sure. Mike, why don't you...

當然。Mike，你要不要……

Dave, so we had -- 2 of the assets really are performing well. One is the Johns Hopkins project, of which just starting same-store sales this past year, and we've had some nice rent increases over last year, and we also went from 10-month leases to 12-month leases. The other is the Smith's Landing at Virginia Tech. Where again, we were getting some nice increases in rents over the prior year.

Dave，我們有——其中兩個資產的表現確實很好。一個是約翰霍普金斯（Johns Hopkins）專案，去年才開始納入同店（same-store）口徑，我們在過去一年有不錯的租金調升，並且也把10個月租約改為12個月租約。另一個是維吉尼亞理工（Virginia Tech）的Smith's Landing。同樣地，我們相較前一年也取得了不錯的租金上漲。

Great. That's helpful. And then I guess, sticking with Apartment 1405 Point, you bought the 79% interest. Can you talk about kind of what the yield is? Or what that building is yielding to you guys on that purchase cost option?

很好。這很有幫助。接著我想談談Apartment 1405 Point，你們買下了79%的權益。你能談談大概的收益率（yield）是多少嗎？或者以你們行使該購買成本選擇權（purchase cost option）的成本來看，那棟大樓對你們的報酬率大概是多少？

Well, again, our intent is to ultimately own the whole thing. Dave, it's going to stabilize in the low 6s, perhaps a little bit better than that. I mean, I was just up there a couple of days ago, and the product looks magnificent, and it's a great location. And like I said, the 287 units in 12 months is really strong. So we're feeling really good about that.

嗯，再次強調，我們的意圖是最終把整個專案都買下來。Dave，它穩定後的報酬率大概會落在6%出頭（low 6s），也許還會略好一些。我的意思是，我幾天前才剛上去看過，產品看起來非常出色，地點也很棒。而且如我所說，12個月內去化287戶真的很強。所以我們對此感覺非常好。

So last a bigger-picture question for me, I guess, just you talked about several mixed-use urban infill centerpieces for the development additions maybe later this year, Lou. Can you just talk about the development pipeline more broadly? I mean, does it continue to be really full for you guys, and is that going to take you to any new markets as you look through the remainder of the year?

最後我有一個更宏觀的問題：Lou，你剛提到今年稍晚可能會新增幾個作為開發增量的混合用途（mixed-use）都會填縫（urban infill）核心案。你能更廣泛地談談整體開發管線（development pipeline）嗎？我的意思是，你們的管線是否仍然非常滿？而且在今年剩餘時間的布局中，這會把你們帶進任何新市場嗎？

Everything that we're looking at right now is in our existing markets, from Georgia up through Maryland. And it -- like I said, the deal flow is -- I think it's higher than I've ever seen it. So there's an awful lot of optimism out there, and -- that's the good news. The bad news is it takes longer to weed through them. Like I said, we're committed to keep our run rate reasonably in the same range. We've gone through periods like this before, where it really leads you to start believing that you can do anything. And that's just not the case. When more projects are available to you, you got to maintain that discipline and just have the very best come out through the top.

我們目前正在看的所有案子都在既有市場，從喬治亞一路到馬里蘭。而且——如我所說，案源（deal flow）——我認為比我過去見過的任何時候都多。所以外界有非常多的樂觀情緒——這是好消息。壞消息是，篩選它們需要更長時間。如我所說，我們承諾會把我們的運行速度（run rate）維持在大致相同的區間。我們以前也經歷過這樣的時期，這很容易讓你開始相信自己什麼都能做。但事實並非如此。當你面前有更多專案可選時，你必須維持紀律，只讓最好的案子脫穎而出。

Our next question comes from the line of John Guinee with Stifel.

我們的下一個問題來自Stifel的John Guinee。

Two questions. First, how are you going to digest all this deal flow, Lou?

兩個問題。第一，Lou，你打算如何消化這麼多案源？

Well, actually John, I'm glad you asked. We will be putting a press release out in the next week or so. We've hired a new Chief Investment Officer, Jonathan Morris, who some of you may be familiar with. Jonathan comes to us with a ton of REIT experience. A great successful tenure at Boston properties. He will be starting with us actually this coming week. And I'm looking forward to getting him engaged and help us digest what's going on. So that's my answer.

嗯，John，其實我很高興你問到這個。我們會在接下來一週左右發布新聞稿。我們已聘請新的投資長（Chief Investment Officer），Jonathan Morris，你們當中有些人可能對他不陌生。Jonathan帶來了大量REIT經驗。他在Boston Properties有一段非常成功的任期。他其實會在下週就到職。我很期待他投入並協助我們消化目前的狀況。所以這就是我的回答。

Okay. Then second, you have a lot of retail product out there, and you have a lot of different food anchors, most of which are Food Lion and Harris Teeter. But in this day and age, when you are underwriting food-anchored centers, how are you thinking about the different anchor tenants? And then how are you underwriting the in-line space? Does it cost $5 a foot at the turn, or does it cost $50 a foot? And can you hold rents or are they going up or are they going down?

好的。第二，你們有很多零售產品，而且有許多不同的餐飲／生鮮主力店（food anchors），多數是Food Lion和Harris Teeter。但在這個時代，當你們在承作以生鮮主力店為核心的購物中心（food-anchored centers）時，你們如何看待不同的主力承租戶？另外，你們如何承作店中店（in-line）空間？翻租時每平方英尺成本是5美元，還是50美元？你們能維持租金嗎？租金是在上升、持平，還是在下降？

So let me see if I can answer that from a couple of different angles. We're seeing healthy re-leasing spreads in our retail properties. For us, that's the result, and you guys have heard us talk about it before, tracking the volume in those grocery stores. High-volume grocers are -- have been a staple for us for a very long time. And basically, we've got a supermarket doing $400 to $500 a square foot in sales, then your small shops are going to stay full and you're going to be able to move rents.

我試著從幾個不同角度來回答。我們在零售物業看到健康的續租／再出租價差（re-leasing spreads）。對我們而言，這是結果；你們之前也聽我們談過，我們會追蹤那些雜貨店的銷售量（volume）。高銷量的雜貨商（high-volume grocers）——長期以來一直是我們的核心支柱。基本上，如果我們有一家超市每平方英尺銷售額達400到500美元，那麼你的小店鋪就會維持滿租，你也能夠推動租金上調。

What has changed and will continue to change is your mix. The -- we are looking really hard at limiting the amount of small shops that you build along with those anchors. And there's a lot of movement to fast casual restaurants as well as retail services. And again, it all starts with making sure you've got good traffic flow in that grocery store. As such, you've got to make sure your locations are what they need to be and that your retailing partner is what they need to be. It is interesting to watch the transition of the traditional grocery stores into more experiential type experiences for shoppers. What's interesting to look at as kind of a student of the game is as -- you've continued to see the interior of the stores shrink with the packaged products now being largely commoditized, and very difficult to make margin on. But store sizes, if anything, are increasing because of everything happening in organics and prepared foods and delis and produce sections and the like. So we're continuing to monitor it. I'd tell you, we're as enthusiastic as we have ever been some of the concepts. I was just at our Lowes Foods that I mentioned on the phone, down in the Charleston area. And that has the benefit of being able to shop while you're drinking a beer, which is an interesting concept. So we're going to continue to underwrite these things. It still starts with the old adage of location, location, location. And I think the caution is making sure that you don't put too much space online.

已經改變、而且將持續改變的是你的業態組合。我們——正非常努力地在限制你在那些主力店（anchor）旁邊興建的小型店鋪數量。同時，快速休閒餐飲以及零售服務也有很大的轉移與成長。而且再說一次，一切都要從確保那家雜貨店有良好的客流動線開始。因此，你必須確保你的據點位置符合需求，也要確保你的零售合作夥伴符合需求。觀察傳統雜貨店轉型為更偏體驗式的購物體驗，確實很有意思。以一個研究這個產業的人來看，有趣的是——你持續看到店內的陳列空間在縮小，因為包裝商品如今大多已商品化，要做出毛利非常困難。但店面面積若說有什麼變化，反而是在增加，因為有機商品、熟食、熟食吧（deli）、生鮮蔬果區等各種品類的發展所致。所以我們會持續監測。我可以告訴你，我們對其中一些概念的熱情，和以往任何時候一樣高。我剛去過我在電話裡提到的那家 Lowes Foods，就在查爾斯頓一帶。那家店的好處是你可以一邊喝啤酒一邊購物，這是個很有趣的概念。所以我們會持續對這些案子進行承作評估（underwrite）。但一切仍然要回到那句老話：地點、地點、地點。我認為需要謹慎的是，確保你不要把太多空間放到線上。

So John, your question on the cost on re-leasing the retail. So in the last year, we've released renewals of approximately 390,000 square feet with the average cost of that less than $2 a foot. So as I think -- saw something about the renewals on the in-line spaces and even some of the boxes that we have had here recently, just don't require a lot of capital.

所以 John，你問到零售重新出租（re-leasing）的成本。過去一年，我們完成續租（renewals）約 39 萬平方英尺，平均成本每平方英尺不到 2 美元。所以如我所想——我看到一些關於店內走道型（in-line）店面續租、甚至我們最近一些大盒子店（box）的續租資訊，其實都不需要投入太多資本。

How about the new space when you get something back?

那如果是收回來的新空間呢？

So on the retail, if you take a look at our supplemental package, again, the highest here in the last year on average is $45 a foot. But it's running in that $30 to $45 a foot.

至於零售部分，如果你看我們的補充資料包（supplemental package），過去一年平均最高大約是每平方英尺 45 美元。但大致落在每平方英尺 30 到 45 美元之間。

Our next question comes from the line of Jim Lykins with D.A. Davidson.

下一個問題來自 D.A. Davidson 的 Jim Lykins。

I've got a question about one of your tenants at Town Center, Dick's Sporting Goods. I believe that's your biggest lease there and it's coming due soon. I'm wondering if they will be renewing and if they have any options. Can you can tell us what you know or what you may have heard?

我想問你們在 Town Center 的一位承租戶：Dick's Sporting Goods。我相信那是你們那裡最大的租約，而且快到期了。我想知道他們是否會續租，以及他們是否有任何選擇權（options）。你能告訴我們你所知道的，或你可能聽到的消息嗎？

Jim, thanks for the question. For those of you who don't follow us closely, the Dick's Sporting Goods location at Town Center was one that was originally built to house Galyans, which was a premier outdoor retailer. Dick's inherited the store through their purchase of that chain some years ago. It's nearly double the size of the Dick's prototype store. The initial term of the lease expires, I believe, early next year. And while we don't have a definitive answer as to their future plans, with 2 other locations within maybe 10 miles and the oversized square footage of the facility, we're hopeful that they will relinquish with the space. Not that there is anything wrong with Dick's, they are a fine retailer. They just don't add anything unique to our retail entertainment mix here at Town Center. So the space will require, to John's previous question, the space will require some investments and downtime if they do decide to go. But the opportunity to bring new concepts to the core at Town Center is one that we absolutely would welcome.

Jim，謝謝你的問題。對於沒有密切關注我們的人，Town Center 的 Dick's Sporting Goods 那個店點，最初是為了 Galyans 而建的；Galyans 是一家頂級戶外用品零售商。Dick's 在多年前收購那個連鎖體系時，承接了那家店。那家店的面積幾乎是 Dick's 標準原型店（prototype store）的兩倍。該租約的初始租期我記得是在明年年初到期。雖然我們還沒有他們未來計畫的明確答案，但考量到在大約 10 英里內還有另外 2 個據點，以及該設施的超大坪數，我們希望他們會把空間交還出來。並不是說 Dick's 有什麼不好，他們是很好的零售商。只是他們在 Town Center 這裡的零售與娛樂組合中，並沒有帶來任何獨特性。所以如果他們決定離開，正如 John 先前的問題所提到的，這個空間將需要一些投資與空置期（downtime）。但能把新概念引進 Town Center 核心區的機會，我們絕對會歡迎。

So what would you potentially do with that space? That's a pretty big box. Would you cut it up? Any color on additional tenants there?

那你們可能會怎麼運用那個空間？那是一個相當大的大盒子店。你們會把它切分嗎？對於新增承租戶，有沒有任何可以分享的方向？

Sure. I don't want to name names, but we've got dynamic growing community here. It's dynamic and it's growing because we continue to add choices for the residents and the patrons and the office workers and the like. Personally, I think it would be great to add one of the large-scale fitness facilities that you see coming around. I like some of the new interactive entertainment concepts. And frankly, there is a few one in the market type destination retailers that we've like to take a run at. It's all about the mix. And you are right. It's a great big box. It's right in our core. And it deserves some good thought before we do anything. The easy answer, as we certainly can convert it to large floorspace of office space. And in the short term that might be the best financial alternative, but I don't think it's best for the long-term health. And of course, it could end up that Dick's downsizes and stays there and we do something with the extra space. So we'll see. We're tracking it closely. It's a great opportunity.

當然。我不想點名，但我們這裡是一個充滿活力且持續成長的社區。之所以充滿活力且成長，是因為我們持續為居民、消費者、辦公族等增加更多選擇。就我個人而言，我覺得若能引進你近來看到的那種大型健身設施會很棒。我也喜歡一些新的互動式娛樂概念。坦白說，市場上也有少數屬於「市場唯一」（one in the market）型的目的地零售商，我們想去爭取看看。一切都在於組合。而你說得對。那確實是一個很大的大盒子店。它就在我們的核心區。在我們採取任何行動之前，值得好好思考。最簡單的答案是，我們當然可以把它改成大面積的辦公空間。短期來看，那可能是最好的財務替代方案，但我不認為那對長期健康發展最好。當然，也可能最後是 Dick's 縮小面積並留在那裡，而我們利用多出來的空間做其他用途。所以我們再看看。我們會密切追蹤。這是一個很好的機會。

Okay. That's very helpful. One last one from me, back to the new projects you've planned to announce by the summer end. Anything else you can tell us there? Are these going to be public-private partnerships, mixed-use? Where are you in the process? Just any additional color on any of these projects?

好的。這非常有幫助。我最後一個問題，回到你們計畫在夏末前宣布的新專案。你還能多告訴我們一些嗎？這些會是公私合夥（public-private partnerships）、複合式開發（mixed-use）嗎？你們目前進度到哪裡了？對這些專案還有任何額外資訊可以分享嗎？

Let's see. I can't give you too much more. The 2 I was referring to specifically are definitely infill urban areas, definitely have an office component, definitely have a retail component. And at least one will end up with a residential component. And as -- that's our model. The mixed-use, the walkability, the idea that your car doesn't have to move very much at all, has served us well for a number of years. And it's going to serve us well in Baltimore, it's served us well in Virginia Beach. And so we're pushing really hard. I'd give these 2 better than 50-50. And like I said before, there is several right behind that, that are waiting to take their place. So I'm pretty confident we'll be able to make some announcements before the next quarter.

我想想。我不能再透露太多。我剛才特別指的那 2 個案子，確定都是都會區的填充型（infill）地段，確定會有辦公成分，確定會有零售成分。而且至少有一個最後會加入住宅成分。而——那就是我們的模式。複合式使用、可步行性（walkability）、以及「你的車根本不需要怎麼移動」這個概念，多年來一直讓我們受益良多。它會在巴爾的摩繼續讓我們受益，也已在維吉尼亞海灘證明有效。所以我們正在非常積極推進。我會給這 2 個案子超過五五波的機率。而且如我先前所說，後面還有好幾個案子排隊等著接上。所以我相當有信心，我們能在下個季度之前做出一些公告。

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

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

Lou, how should we be thinking about the mezz portfolio going forward? Are most of these development deals that you're looking at likely in that type of a structure initially? Or are they more straightforward development deals? Are we likely to see with the exercise of some of these options and repayments, are we likely to see the mezz portfolio decrease significantly in size here over the next few quarters?

Lou，對於未來的夾層（mezz）投資組合，我們應該如何看待？你們目前在看的這些開發案，多數一開始就可能採用這種結構嗎？還是說它們是比較直接的開發案？隨著部分選擇權的行使與償還，未來幾季夾層投資組合的規模是否可能顯著縮小？

I don't think you're going to sew it one piece at a time there. And thanks for that question, Rob. We're try and give some clarity to that. Everything that we're looking at for the next pipeline does not -- would not be a part of that mezz program. And when we use that primarily on large-scale multifamily where you take a couple of years to build it and a couple of years to lease it up.

我不認為你會把它一塊一塊縫起來。也謝謝你的問題，Rob。我們試著把這點講清楚。我們接下來管線中正在看的所有案子，並不是——也不會——屬於那個夾層計畫的一部分。我們主要是在大型多戶住宅案上使用那個計畫，因為這類案子通常要花幾年建造，再花幾年完成出租（lease-up）。

(technical difficulty)

(技術問題)

We don't see that forming in the pipeline. At the same time, I don't think you'll see significant -- we've got a couple that are going to get paid off this year, as Mike alluded to. But those large-scale ones in Atlanta run all the way through 2020. We forecasted -- when we issued our guidance deck at the beginning of the year, we guided people to our thought that, that program was going to stay pretty steady over the next couple of years. So I think we will be redeploying the smaller amounts that are coming due. And like I said, the proceeds, we believe, are going to be in that same range for the next couple of years.

我們不認為這會在管線中形成。同時，我也不認為你會看到顯著——正如 Mike 提到的，今年有幾筆會被償還。但亞特蘭大那些大型案子會一路延續到 2020 年。我們在年初發布指引簡報時就已預告，我們認為該計畫在未來幾年會維持相當穩定。所以我認為，我們會把到期回收的小額資金再部署。而且如我所說，我們相信未來幾年所得款項會落在相同的區間。

Okay. The 2 Virginia Beach retail acquisitions you made, make you any less inclined to exercise the purchase option on Nexton Square and raise the retail concentration further?

好的。你們在維吉尼亞海灘做的兩筆零售收購，會不會讓你們比較不傾向行使 Nexton Square 的購買選擇權，進一步提高零售比重？

No, not at all. Like I said, we did the purchase using that at-cost or the discounted purchase option, it's been a part of our forecasting for a while.

不，完全不會。如我所說，我們是透過成本價或折價的購買選擇權來完成收購，這也已經納入我們的預測一段時間了。

Again, I was just at that product, couple weeks ago. Tenants will be opening quickly. That's a lifestyles center that's nestled among the just literally thousands of units walkable to the site. It is a lot of entertainment concepts as well as retail services, as opposed to traditional retail. I think that's going to be one of the best properties in the portfolio for a long time to come. As I said, we had an opportunistic acquisition here with the Virginia Beach centers. But overall, as the development pipeline stabilizes, you'll see that percentage go back to where we were forecasting. It's possible that we could look at further dispositions. It all depends on capital needs and continuing to review our portfolio.

另外，我幾週前才去看過那個案子。租戶會很快開幕。那是一個生活風格中心（lifestyle center），周邊就有字面上數以千計、可步行到達的住宅單位。它包含許多娛樂概念以及零售服務，而不是傳統零售。我認為那將會在很長一段時間內成為投資組合中最好的資產之一。如我所說，我們在維吉尼亞海灘的中心是一次機會型收購。但整體而言，隨著開發管線趨於穩定，你會看到該比例回到我們原先預測的水準。我們也可能會考慮進一步處分。這完全取決於資本需求，以及我們持續檢視投資組合的結果。

Okay. And then any exposure at One Columbus from the BB&T and SunTrust merger?

好的。那麼，BB&T 與 SunTrust 合併，對 One Columbus 有任何曝險嗎？

I haven't heard that there is. I would suspect that BB&T would be looking to do some consolidation at some point. We don't have room for them here, so that's a possibility. We really don't see much on the horizon that could affect us here at Town Center office space wise. We just don't have any significant chunks of space. To be honest with you, I wouldn't mind having a significant chunk of space, because we literally can't accept a new tenant at this point.

我沒有聽說有。我猜 BB&T 可能會在某個時間點尋求一些整併。我們這裡沒有空間給他們，所以那是一種可能性。就 Town Center 的辦公空間而言，我們真的看不到近期有什麼可能影響我們的因素。我們就是沒有任何大面積的空間。老實說，我倒希望有一大塊空間，因為我們目前真的無法接納新的租戶。

Mind you, we're kind of in that no man's zone, where we're not ready to launch a new building for a lack of a big anchor, and yet we are not in a position to do a whole lot of leasing. We are going to get some space back. Some of you might have heard me allude to this before. All of that -- we've got a lot of education space here, with the Art Institute, Hampton University, Strayer. They are all feeling the effects of a robust job market. And therefore, enrollments are down. I'd say all 3 of them are going to extend and shrink. So we will probably get back some space here, but nothing that -- nothing is all that concerning. The leasing team is all over it.

請注意，我們有點處在一個尷尬地帶：因為缺少大型主力租戶（anchor），我們還沒準備好啟動新大樓；但同時我們也沒有太多空間可以進行大量出租。我們會收回一些空間。你們有些人可能以前聽我提過。我們這裡有不少教育用途的空間，包括 Art Institute、Hampton University、Strayer。他們都感受到就業市場強勁的影響。因此，招生人數下降。我會說他們三家都會續約並縮減面積。所以我們可能會收回一些空間，但沒有——沒有什麼是特別令人擔憂的。租賃團隊正在全力處理。

Okay. Any significant tenants that you're currently not expecting to renew this year or next, besides the Art Institute?

好的。除了 Art Institute 之外，今年或明年是否有任何你們目前預期不會續約的重要租戶？

Besides there is -- those downsizes are -- on the office side, the downsizes I just mentioned will probably be happening and actually we want it complete. The Art Institute here downsized and extended their lease. And the space that they gave back, we promptly leased to Fidelity investments at a significantly higher rate. So hopefully we'll have some more of those. We are really not, I discussed the Dick's, the grocery stores all appear to be lining up. And Mike, didn't we just get a couple of renewals?

除了——那些縮減——在辦公端，我剛提到的縮減可能會發生，而且其實我們希望它完成。這裡的 Art Institute 已經縮減並延長了租約。而他們交還的空間，我們很快就以顯著更高的租金租給了 Fidelity Investments。所以希望還能有更多這樣的案例。我們其實沒有——我提過 Dick's，那些雜貨店看起來都會續上。Mike，我們是不是剛拿到幾個續約？

Yes. The Food Lion at Gainsborough Square in Chesapeake just picked up their option, and we had one of the Bed Bath & Beyonds just pick up their option as well. So couple of big ones have picked up and we're in negotiations with the other ones coming up. So like Lou said, other than the Dick's and the Compass office space, we feel good about the renewals.

是的。切薩皮克（Chesapeake）Gainsborough Square 的 Food Lion 剛行使了他們的選擇權，我們也有一家 Bed Bath & Beyond 剛行使了選擇權。所以有幾個大的已經行使了，我們也正在和其他即將到期的租戶談判。所以如 Lou 所說，除了 Dick's 和 Compass 的辦公空間之外，我們對續約狀況感到樂觀。

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

目前沒有其他問題。我現在把電話交回給 Lou 作結語。

Thanks, operator. And thanks, everybody, for your interest in our company. We look forward to updating you on our activities and results in the coming quarters. Thanks very much. Goodbye.

謝謝，接線員。也謝謝各位對我們公司的關注。我們期待在接下來幾季向各位更新我們的活動與業績。非常感謝。再見。

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

今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與。