AH Realty Trust, Inc (AHRT) 2019 Q4 法說會逐字稿

Welcome to our Armada Hoffler's Fourth Quarter 2019 Earnings Conference call. (Operator Instructions)

歡迎參加 Armada Hoffler 2019 年第四季財報電話會議。(接線員指示)

As a reminder, this conference is being recorded today, Thursday, February 6, 2020.

提醒各位，本次會議正在錄音，時間為 2020 年 2 月 6 日（星期四）。

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

現在我將把電話交給 Armada Hoffler 財務長 Michael O'Hara。先生，請開始。

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

各位早安，感謝各位參加 Armada Hoffler 2019 年第四季及全年財報電話會議與網路直播。今天早上的電話會議中，除了我之外，還有執行長 Louis Haddad。

The press release announcing our fourth quarter earnings, along with our quarterly supplemental package and 2020 guidance presentation were distributed this morning. A replay of this call will be available shortly after the conclusion of the call through March 6, 2020. The numbers to access the replay are provided in the earnings press release. For those who will listen to the rebroadcast of this presentation, remind you that the remarks made herein are as of today, February 6, 2020, and will not be updated subsequent to this initial earnings call.

本公司今早已發布宣布第四季財報的新聞稿，以及季度補充資料包與 2020 年財測指引簡報。本次電話會議的重播將於會議結束後不久提供，並可收聽至 2020 年 3 月 6 日。重播的撥入號碼已載於財報新聞稿中。對於將收聽本次簡報重播的聽眾，提醒各位：本次發言內容以今日（2020 年 2 月 6 日）為準，且在本次初次財報電話會議後不會再更新。

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 mezzanine program, 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（mezzanine）計畫、營造業務、投資組合表現與融資活動相關的陳述，以及對我們指引與展望的評論。

Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations, and we advise listeners to review the forward-looking statement disclosure in our press release this morning and the risk factors disclosed in the documents we have filed with or furnished to the SEC. We'll also discuss certain non-GAAP financial measures, including, but not limited to, FFO and normalized FFO. Definitions of these non-GAAP measures as well as reconciliations to the most comparable GAAP measures are included in the quarterly supplemental package, which is available on our website at armadahoffler.com.

提醒聽眾注意，這些陳述受若干風險與不確定性影響，其中許多難以預測，且通常超出我們的控制範圍。這些風險與不確定性可能導致實際結果與我們目前預期出現重大差異；我們建議聽眾查閱今早新聞稿中的前瞻性陳述揭露，以及我們向 SEC 申報或提供之文件中揭露的風險因素。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 指標之調節表，均收錄於季度補充資料包中，可於我們網站 armadahoffler.com 取得。

We will start the call today by discussing our 2020 guidance. At this time, I'd like to draw your attention to our 2020 guidance presentation that we published this morning.

我們今天將先從討論 2020 年指引開始。此刻，我想請各位留意我們今早發布的 2020 年指引簡報。

I'll now turn the call over to Lou.

現在我把電話交給 Lou。

Thanks, Mike. Good morning, everyone, and thank you for joining us today. Next month, we will mark the 41st anniversary of the founding of our company. We take a great deal of pride in achieving that milestone, one not often seen in the commercial real estate business.

謝謝你，Mike。各位早安，感謝各位今天加入我們。下個月，我們將迎來公司成立 41 週年。我們對達成這個里程碑深感自豪，這在商用不動產產業並不常見。

Over the years, we've earned a reputation for integrity, consistency and professionalism, traits that are the foundation of our success. The last decade saw us turn a seasoned, vertically integrated, multi-asset class private real estate company into a publicly traded diversified REIT. The results have been stellar. The company has increased its market cap nearly fivefold since its 2013 inception, and investors have enjoyed returns in excess of 150% over the last 5 years, more than tripling the returns of the RMS. In addition to analysts and investors, there are many employees and joint venture partners listening in on the call today. On behalf of our Founder and Chairman, Dan Hoffler, the Board of Directors and executive management, we sincerely thank you for being a part of our team. I'm proud to be associated with each one of you.

多年來，我們以誠信、一致性與專業精神建立了聲譽，這些特質是我們成功的基石。過去十年，我們將一家成熟、垂直整合、多資產類別的私人不動產公司，轉型為公開上市的多元化 REIT。成果十分亮眼。自 2013 年成立以來，公司市值幾乎成長至近 5 倍；投資人在過去 5 年的報酬率超過 150%，並且超過 RMS 報酬的三倍以上。除了分析師與投資人之外，今天也有許多員工與合資夥伴正在收聽本次電話會議。我謹代表創辦人暨董事長 Dan Hoffler、董事會與經營團隊，誠摯感謝各位成為我們團隊的一份子。我很榮幸能與各位共事。

While the focus of my comments today will be on our 2020 guidance as presented in the release this morning, I'll first offer a few thoughts on the fourth quarter and 2019. As you can see from our earnings release, we've been extremely busy at the company. Over the last few months, we've announced 3 new development projects, signed several third-party construction contracts and made solid progress on our asset recycling initiatives. Perhaps most importantly, 2019 saw us maintain high occupancy portfolio-wide and generate healthy increases in re-leasing spreads. Our fourth quarter results were in line with expectations and normalized FFO for the full year was $1.17 per share, which was in the middle of our guidance range. As we forecasted at the beginning of last year, 2019 would yield a double-digit increase in per share earnings over 2018. And it has done so with a year-over-year increase of nearly 14%.

雖然我今天的重點將放在今早新聞稿所呈現的 2020 年指引，但我會先分享一些對第四季與 2019 年的看法。從我們的財報新聞稿可見，公司一直非常忙碌。過去幾個月，我們宣布了 3 個新的開發案、簽下數份第三方營造合約，並在資產汰換／循環（asset recycling）計畫上取得扎實進展。或許最重要的是，2019 年我們在整體投資組合維持高出租率，並在續租租金價差（re-leasing spreads）方面取得健康的成長。我們第四季結果符合預期，全年標準化 FFO 為每股 1.17 美元，落在指引區間的中位數。如同我們在去年年初所預測，2019 年每股盈餘將較 2018 年呈現雙位數成長。實際上，年增幅接近 14%。

As has been relayed to you over the last few quarters, we anticipate only a slight increase in earnings per share for 2020. This is a year where our focus is to substantially increase our NAV through our capital recycling efforts, exciting development initiatives and high-return redevelopment. In short, we anticipate that our activities, over the course of 2020, will build a solid case for expansion of our multiple and ultimately lead to significantly higher earnings over the next few years. As the company's largest equity holder, management remains committed to generating long-term value for all shareholders.

如同過去幾季向各位說明的，我們預期 2020 年每股盈餘僅會小幅增加。今年我們的重點，是透過資本循環（capital recycling）努力、令人振奮的開發計畫，以及高報酬的改造／再開發（redevelopment），大幅提升我們的 NAV。簡言之，我們預期 2020 年的各項作為，將為估值倍數擴張建立堅實論述，並最終在未來幾年帶來顯著更高的盈餘。作為公司最大的股權持有人，管理團隊仍致力於為所有股東創造長期價值。

Turning to our guidance presentation. As you can see by the earnings range on Page 4, the midpoint of our per share guidance is $1.18. While on the surface, not as exciting as last year's large increase, when you look at the assumptions at the bottom of the page, you begin to understand our decision to sacrifice short-term profits for long-term growth and value. Specifically, as is detailed on Page 5, beginning with the sale of Lightfoot Marketplace last year, we anticipate the likely sale of 8 of our older commodity-type neighborhood centers at a mid-7 cap rate. The vast majority of the proceeds will be used in the acquisition of 2 new Whole Foods centers, the new lifestyle center at Nexton Square, and a multifamily asset within site of the capital building in Richmond, Virginia. It is important to note that all of these high-value acquisitions will be executed off-market for a discounted price and with existing partners. Some of whom will be taking their equity in the form of OP units.

接著談我們的指引簡報。如各位在第 4 頁的盈餘區間所見，我們每股指引的中點為 1.18 美元。表面上看起來不如去年大幅成長那麼令人興奮，但當你檢視頁面底部的假設條件時，就會開始理解我們為了長期成長與價值而犧牲短期獲利的決策。具體而言，如第 5 頁所詳述，從去年出售 Lightfoot Marketplace 開始，我們預期可能以約 7% 中段的資本化率（cap rate）出售 8 個較老、屬於一般商品型的社區型購物中心。絕大部分出售所得將用於收購 2 個新的 Whole Foods 購物中心、Nexton Square 的新生活風格中心（lifestyle center），以及位於維吉尼亞州里奇蒙（Richmond）州議會大樓附近的一項多戶住宅資產。需要特別指出的是，這些高價值收購案都將以場外交易（off-market）方式、以折價價格並與既有合作夥伴共同執行。其中部分合作夥伴將以 OP 單位（OP units）的形式投入其股權。

Despite the discounted purchase prices, the cap rate differential between our acquisitions and dispositions will have a negative effect on short-term earnings. When you combine that headwind with a decrease in mezzanine income and capital raising for new exciting development projects, you can see the reasons for this year's range. More importantly, we hope you all feel as we do, that these intentional moves are part of a longer-term strategy that positions the company for even greater returns than investors have enjoyed over the past 5 years.

儘管收購價格具折價，但我們收購與處分之間的資本化率差異，將對短期盈餘造成負面影響。再加上夾層融資收入下降，以及為新的、令人振奮的開發案進行資金募集，你就能理解今年指引區間的原因。更重要的是，我們希望各位能與我們有同樣的感受：這些刻意的調整是更長期策略的一部分，將使公司在未來帶來比投資人過去 5 年所享有的報酬更高的回報。

Before I walk you through the other highlights of our presentation, I'm going to reiterate the fact that many who follow our company have correctly pointed out that we do not fit neatly into the standard REIT box. With third-party construction profits, build-to-suit asset sales and mezzanine interest income, our platform has a unique complexity that can't be wholly measured by traditional REIT metrics.

在我帶各位看簡報的其他重點之前，我要再次強調：許多關注我們公司的人士都正確指出，我們並不完全符合標準 REIT 的典型框架。憑藉第三方營造利潤、量身打造（build-to-suit）資產出售，以及夾層利息收入，我們的平台具有獨特的複雜性，無法完全以傳統 REIT 指標衡量。

That said, while these ancillary income streams augment earnings and decrease the need for external capital, the end goal of monetizing development spreads in this fashion is to enhance growth in our portfolio income through new development projects and off-market OP unit acquisitions. Illustrative of this point, as you can see by the information at the top of Page 6, we expect our portfolio NOI to climb by over 40% from 2019 levels when the current development projects are fully stabilized. The FFO per share contribution from this additional NOI will be meaningfully higher due to the millions of dollars earned from mezzanine activity and construction income that we reinvest into the company, thereby reducing the need for outside capital.

話雖如此，儘管這些附屬收入來源可增加獲利並降低對外部資本的需求，但以此方式將開發利差變現的最終目標，是透過新的開發專案以及場外（off-market）OP 單位收購，提升我們投資組合收入的成長。為說明此點，如您從第 6 頁頂端的資訊所見，當目前開發專案完全穩定後，我們預期投資組合 NOI 將較 2019 年水準提升逾 40%。由於我們將夾層融資活動與施工收入所賺取的數百萬美元再投入公司，從而降低對外部資本的需求，因此這些新增 NOI 對每股 FFO 的貢獻將顯著更高。

Also of note on Page 6, as we have been projecting, the pie chart showing the NOI contribution of our various product types continues to adjust with concentration moving from retail into multifamily and office. While the non-retail assets that are being added to the portfolio through development and acquisition are of trophy quality and offer significant long-term growth, I'd like to emphasize that we are also very bullish on all components of our retail portfolio. Neighborhood grocery centers, regional discount change and entertainment and mixed-use retail will remain as a high occupancy and growing sector of our business.

同樣值得注意的是第 6 頁：如我們先前所預測，顯示各產品類型 NOI 貢獻的圓餅圖持續調整，集中度正由零售轉向多戶住宅與辦公室。雖然透過開發與收購加入投資組合的非零售資產屬於地標級（trophy）品質，並提供可觀的長期成長，但我也想強調，我們對零售投資組合的所有組成部分同樣非常看好。鄰里型雜貨中心、區域型折扣連鎖與娛樂，以及複合式零售，仍將是我們業務中高出租率且持續成長的板塊。

Turning to Page 7. You can see that we've also been very successful in diversifying our portfolio on a geographic basis. Upon stabilization of the current pipeline, nearly half of our property NOI will come from outside of Virginia. This increased diversification is the result of years of goodwill and strong relationships built with strategic partners in these dynamic markets.

接著看第 7 頁。您可以看到，我們在地理分布上也非常成功地使投資組合多元化。在目前管線專案穩定後，我們物業 NOI 近一半將來自維吉尼亞州以外。這種更高的多元化，是多年來在這些充滿活力的市場中，與策略夥伴建立的良好商譽與穩固關係所帶來的成果。

The development pipeline is described on Page 8. Premier Retail at Town Center is one tenant away from stabilization while Summit Place and Wills Wharf are on track for delivery in the second quarter. We expect both projects to be substantially leased by year-end. The 3 projects that will break ground later in the year, Southern Coast, Chronicle Mill and Ten Tryon constitute nearly $250 million of prime mixed-use space in fast-growing submarkets. All 3 are weighted towards multifamily and office uses, but will also include some complementary retail. On the redevelopment front, renovation is continuing in the Town Center of Virginia Beach with all construction scheduled for completion this year at The Cosmopolitan Apartments, Columbus Village and Apex Entertainment.

第 8 頁說明了開發管線。Town Center 的 Premier Retail 距離穩定僅差一位租戶，而 Summit Place 與 Wills Wharf 皆按計畫於第二季交付。我們預期兩個專案在年底前將達到大致出租。今年稍晚將動工的 3 個專案——Southern Coast、Chronicle Mill 與 Ten Tryon——在快速成長的次級市場中合計近 2.5 億美元的優質複合式空間。這 3 個專案以多戶住宅與辦公用途為主，但也將包含部分互補性的零售。在再開發方面，維吉尼亞海灘 Town Center 的翻新工程持續進行，The Cosmopolitan Apartments、Columbus Village 與 Apex Entertainment 的所有施工預計於今年完工。

We anticipate returns in excess of our ground-up developments on the new investments in these properties. Beyond the engagements nearing completion and recently announced projects, we are evaluating multiple new opportunities in these and other neighboring areas. While nothing has been finalized, our expectation is that at least one of these new engagements will be ready to announce later this year.

我們預期對這些物業的新投資，其報酬率將高於我們從零開始（ground-up）的開發案。除接近完工的案子與近期公布的專案外，我們也正在這些及其他鄰近區域評估多個新機會。雖然尚未定案，但我們預期至少其中一項新案子將可於今年稍晚對外宣布。

Page 9 shows our mezzanine investment program. As most of you know, this initiative allows us to provide development and construction expertise as well as our strong credit to trusted partners developing high-quality projects in return for most of the value creation. We've separated the program into 2 types: assets that we intend to ultimately acquire through a discounted purchase option; and projects that we feel are better suited as short-term investments. The assets in this latter category are expected to trade at cap rates significantly below our cost of capital, thereby making our acquisition less practical.

第 9 頁展示我們的夾層投資計畫。如各位多數人所知，這項計畫讓我們能向可信賴的合作夥伴提供開發與施工專業，以及我們強健的信用，協助其開發高品質專案，並換取價值創造中的大部分收益。我們將該計畫分為兩類：我們打算最終透過折價購買選擇權取得的資產；以及我們認為更適合作為短期投資的專案。後一類資產預期將以顯著低於我們資本成本的資本化率（cap rate）交易，因此使我們收購的可行性較低。

Consequently, our partners will likely be offering the assets to the general market. However, if an opportunity arises to negotiate a favorable option to purchase, we won't hesitate to add top-quality assets to the portfolio, as was the case with the pending acquisition of the Delray Beach, Whole Foods Center. The mezzanine lending strategy, combined with the schedule, quality and cost control provided through our general contracting arm enables us to participate in top-quality developments and monetize a large percentage of the wholesale to retail spread through interest and fee income.

因此，我們的合作夥伴很可能會將這些資產提供給一般市場。不過，若出現可協商到有利購買選擇權的機會，我們將毫不猶豫把頂級資產納入投資組合，例如目前待完成收購的 Delray Beach Whole Foods Center 即為一例。夾層放款策略，加上我們總承包部門所提供的進度、品質與成本控管，使我們得以參與頂級開發案，並透過利息與費用收入，將批發到零售的利差中很大一部分加以變現。

Stated another way, this aspect of our investment strategy maximizes flexibility in deciding which projects are best suited for inclusion in the portfolio and which are best to monetize based on a variety of factors, including capital market and commercial real estate conditions. As you can see, over a multiyear period, we expect to generate some $60 million of fee and interest income. Based on the projected payoff dates of the current projects and likely engagements in predevelopment, we expect the program to stay near the current level, at least through 2020, yielding significant profits over the next few years. Mike will update you on the 2020 guidance on this segment of our business.

換句話說，這項投資策略的面向，能在決定哪些專案最適合納入投資組合、哪些最適合變現方面，提供最大的彈性；判斷因素包括資本市場與商用不動產環境等多項條件。如您所見，在多年期間內，我們預期可創造約 6,000 萬美元的費用與利息收入。基於目前專案預估回收日期，以及可能處於前期開發階段的合作案，我們預期該計畫至少到 2020 年都將維持在接近目前的規模，並在未來幾年帶來可觀利潤。Mike 將向各位更新我們在此業務分部的 2020 年指引。

Page 10 covers our third-party construction and other real estate services. With a healthy backlog of over $240 million, the division is expected to have one of its best years ever with over $7.5 million of gross profit in 2020. The substantial increase in fee income partially offsets the negative effects of the headwinds I described earlier, adding a layer of flexibility not available to most any other REIT. Although significant, third-party fee income is perhaps the least important benefit of our construction company. Aside from giving us the confidence and control to pursue our in-house development and mezzanine strategies, construction contracting has brought us many new relationships with high-quality developers that we may ultimately add to our circle of partners and new ventures.

第 10 頁涵蓋我們的第三方施工與其他不動產服務。在超過 2.4 億美元的健康在手訂單支撐下，該部門預期 2020 年將創下歷來最佳年度之一，毛利將超過 750 萬美元。費用收入的大幅增加，部分抵消了我先前所描述的逆風所帶來的負面影響，並增添了幾乎任何其他 REIT 都不具備的一層彈性。儘管第三方費用收入相當可觀，但它或許是我們施工公司最不重要的好處。除了讓我們更有信心並能掌控推進自有開發與夾層策略外，施工承包也為我們帶來許多與高品質開發商的新關係，未來我們可能將其納入合作夥伴圈與新合資案。

Stepping back to a macro look at the business, the top of Page 11 shows the year-over-year anticipated change in the composition of our normalized FFO. As you can see, FFO from our properties rises the most on an absolute basis, followed by construction profit, while interest income and other fees slightly decrease. The pie chart show that while a significant portion of our FFO is derived from ancillary real estate-related sources, the vast majority is generated from our portfolio.

從更宏觀的角度回看業務，第 11 頁頂端顯示我們標準化 FFO 組成的年對年預期變化。如您所見，來自物業的 FFO 在絕對金額上增幅最大，其次是施工利潤，而利息收入與其他費用則略有下降。圓餅圖顯示，雖然我們的 FFO 有相當一部分來自附屬的不動產相關來源，但絕大多數仍由我們的投資組合所產生。

With a large increase in construction profit, offsetting the decrease in mezzanine and other fees, 2020 shows a very similar breakdown to 2019. However, as we have said in the past, our expectation is that mezzanine, construction and build-to-suit contributions will stay more or less static or slightly decrease over the next few years while stabilization of the existing development pipeline will increase property NOI by nearly $50 million. We expect the resulting FFO generated will return the property segment to well over 80% of the total on a consistent basis, thereby solidifying our free cash flow and expanding our earnings base and our multiple.

在施工利潤大幅增加、抵消夾層與其他費用下降的情況下，2020 年的結構與 2019 年非常相近。然而，正如我們過去所說，我們預期夾層、施工與量身訂做（build-to-suit）的貢獻在未來幾年將大致持平或略為下降；同時，既有開發管線的穩定將使物業 NOI 增加近 5,000 萬美元。我們預期由此產生的 FFO 將使物業分部在穩定狀態下回到占總額 80% 以上，從而鞏固我們的自由現金流、擴大獲利基礎並提升估值倍數。

Now I'll turn it over to Mike to give some further detail on our guidance as well as some specifics on last quarter.

接下來我把時間交給 Mike，請他就我們的指引提供更多細節，並說明上一季的一些具體情況。

Good morning. Before my comments on the quarter and our 2020 guidance, I'd like to bring to your attention our updated website. Last week, we launched our new and improved website, which is easier to navigate and to find our financial information. When you have time, please check it out.

各位早安。在我評論本季以及我們的 2020 年指引之前，我想請各位注意我們更新後的網站。上週我們推出了全新升級的網站，導覽更容易，也更方便查找我們的財務資訊。有空時請上去看看。

For the fourth quarter, we reported FFO of $0.29, normalized FFO of $0.30 per share. For the full year, FFO was $1.10 and normalized FFO was $1.17 per share. 2019 was a very good year for REITs in general and AHH, in particular. Our 2019 total shareholder return was 37% versus 26% for the RMS and in 2019 AHH had 26 all-time high closes. Our 5-year total shareholder return through 2019 was 156% versus 40% for the RMS. We're obviously pleased with these returns and are grateful for the trust our shareholders have placed in our company.

第四季我們公布的 FFO 為 0.29 美元，標準化 FFO 為每股 0.30 美元。全年而言，FFO 為 1.10 美元，標準化 FFO 為每股 1.17 美元。2019 年對 REIT 整體而言是非常好的一年，對 AHH 尤其如此。我們 2019 年股東總報酬率為 37%，相較之下 RMS 為 26%；且在 2019 年，AHH 共有 26 次收盤創歷史新高。截至 2019 年的 5 年股東總報酬率為 156%，相較之下 RMS 為 40%。我們對這些報酬顯然感到滿意，也感謝股東對本公司的信任。

With AHH trading at current levels above consensus NAV, with the current interest rate environment, our cost of capital is substantially lower than in the past. With this lower cost of capital, we have the ability to acquire higher quality assets, such as multifamily communities, Whole Food centers and be accretive.

在 AHH 目前股價水準高於市場一致預估 NAV 的情況下，配合當前利率環境，我們的資金成本較過去顯著降低。在較低的資金成本下，我們有能力收購更高品質的資產，例如多戶住宅社區、Whole Foods 中心，並帶來增益（accretive）。

During 2020, we will continue to pursue high-quality assets to upgrade our portfolio. Our core operating portfolio occupancy for the fourth quarter remained strong at 97%, with both office and retail at 97% and multifamily at 96%. Same-store NOI was positive for 2019, GAAP was positive at 3.8%, and cash was positive 4.5%. Additionally, our releasing spreads were positive again this quarter, 6.7% on a GAAP basis and 3.4% on cash. We're also positive for the year, 5.6% on a GAAP basis and 2.2% on cash. We believe these positive metrics are a reflection of the quality of our portfolio.

在 2020 年期間，我們將持續追求高品質資產以升級我們的投資組合。第四季我們核心營運投資組合的出租率維持強勁於 97%，其中辦公與零售皆為 97%，多戶住宅為 96%。2019 年同店 NOI 為正，GAAP 口徑為正 3.8%，現金口徑為正 4.5%。此外，本季我們的續租價差再次為正：GAAP 口徑 6.7%，現金口徑 3.4%。全年亦為正：GAAP 口徑 5.6%，現金口徑 2.2%。我們相信這些正向指標反映了我們投資組合的品質。

Now back to the guidance deck. Starting on Page 12. There are a couple of slides relating to the balance sheet. As you can see, we generally have maintained our leverage within our corporate targets of total debt-to-EBITDA with an upper limit of 8x and core debt to core EBITDA in the 6x range. A reminder that our core debt includes the debt associated with our operating properties as well as the outstanding balance on our credit facility, which includes the equity requirements of construction loans for our development projects. With the increase in equity requirements required by lenders today, which is typically 35% of development costs. We have maintained our target range for the past few years, aside from this short-term spike in 2018 related to our build-to-suit sale of the distribution center.

現在回到指引簡報。從第 12 頁開始。有幾張投影片與資產負債表相關。如您所見，我們一般將槓桿維持在公司目標範圍內：總負債對 EBITDA 的上限為 8 倍（8x），核心負債對核心 EBITDA 約在 6 倍（6x）區間。提醒一下，我們的核心負債包含營運物業相關負債，以及循環信用額度的未償餘額；其中也包含我們開發專案之建築貸款所需的股權投入要求。隨著目前放款機構要求提高股權投入比例，通常為開發成本的 35%。除 2018 年因我們量身訂做（build-to-suit）物流中心出售而出現的短期尖峰外，過去幾年我們一直維持在目標區間。

With the upcoming asset recycling, in which we are rotating into better quality assets, EBITDA from these properties will initially be lower. Due to this, after we complete the recycling, our leverage may be higher for a short period of time. As for new development projects, we recently announced, they're expected to break ground during the first half of the year. As is typical of development projects, the initial capital requirements are modest and ramp up during the construction schedule. Due to the timing of these capital requirements and the effect of asset recycling, we believe using the ATM throughout the year is a prudent method to manage leverage.

隨著即將進行的資產汰換（asset recycling），也就是我們輪換至更高品質資產，這些物業的 EBITDA 起初會較低。因此，在完成汰換後，我們的槓桿可能在短期內較高。至於我們近期公布的新開發專案，預期將於上半年動工。如同開發專案的典型情況，初期資本需求較小，並會隨施工進度逐步增加。考量這些資本需求的時點以及資產汰換的影響，我們認為全年運用 ATM 是管理槓桿的審慎方法。

Now turning to Page 13 to review debt maturities. During the fourth quarter, we completed the refinancing of the remaining 2020 loan maturities, and we closed on the recast of our unsecured credit facility, which extends the maturity of the revolver portion to January 2024 and a term loan to January 2025.

接著翻到第 13 頁檢視債務到期結構。在第四季，我們完成了剩餘 2020 年到期貸款的再融資，並完成無擔保信用額度的重訂（recast），將循環額度部分到期日延長至 2024 年 1 月，並將一筆定期貸款延長至 2025 年 1 月。

Page 14 of the deck illustrates our core operating portfolio occupancy since 2013, which has been in the mid-90s. This reflects the strength of our properties, and we expect this to continue at these levels in 2020.

簡報第 14 頁呈現我們自 2013 年以來核心營運投資組合的出租率，一直維持在 90% 中段水準。這反映了我們物業的強勁表現，我們預期 2020 年將持續維持在此水準。

Page 15 illustrates the details of our 2020 mezzanine investment program guidance. While still substantial, we anticipate the program being below 2019 levels. In the fourth quarter, we began to recognize interest income from loan exit fees, including the Annapolis Junction and Interlock loans. Both these loans have provisions that include a fee when the loans are paid off. These fees are essentially a profit participation within these projects. The exit fees are substantial, the $5 million included in our 2020 guidance in addition to $16 million of interest income.

第 15 頁說明我們 2020 年夾層投資計畫（mezzanine investment program）指引的細節。雖然規模仍然可觀，但我們預期該計畫將低於 2019 年水準。在第四季，我們開始認列貸款退出費（loan exit fees）的利息收入，包括 Annapolis Junction 與 Interlock 貸款。這兩筆貸款的條款皆包含在貸款清償時收取費用。這些費用本質上是我們在這些專案中的利潤分成（profit participation）。退出費金額可觀，2020 年指引中除 1,600 萬美元利息收入外，另包含 500 萬美元退出費。

The 2020 interest income guidance is based upon anticipated loan payoffs from Delray, Nexton and Annapolis Junction as listed on this slide. As discussed on the last earnings call, the new GAAP standard known as CECL went into effect on January 1. This new standard requires companies to establish loss reserves on most receivables in loans even when current facts and circumstances do not indicate a loss will be incurred. In establishing these reserves, companies need to estimate the impact of future business cycles that could affect the loans.

2020 年利息收入指引係基於本頁所列 Delray、Nexton 與 Annapolis Junction 等預期貸款清償。如同上一季財報電話會議所討論，新的 GAAP 準則 CECL 已於 1 月 1 日生效。此新準則要求公司對多數應收款與貸款建立損失準備，即使目前事實與情況並未顯示將發生損失。在建立這些準備時，公司需要估計未來景氣循環可能對貸款造成的影響。

We have determined that this new standard only materially affects our mezzanine loans. Based on our analysis and data from our consultants, we've estimated that we will record a reserve between $2 million and $4 million effective January 1. As is typical in any new GAAP standard, this initial reserve will not go through the income statement, and instead will appear as an adjustment to equity in the first quarter of 2020.

我們判定此新準則僅對我們的夾層貸款產生重大影響。根據我們的分析以及顧問提供的資料，我們估計自 1 月 1 日起將認列 200 萬至 400 萬美元的準備。依新 GAAP 準則的典型作法，這筆初始準備不會經由損益表，而是會在 2020 年第一季以股東權益調整的方式呈現。

Going forward, we go through the same analysis every quarter and adjust the reserve. This adjustment is noncash and with the unpredictable nature of the reserve, we decided not to include this adjustment in normalized FFO. That said, any actual losses from the mezz program will be included in normalized FFO.

往後我們每季都會進行相同分析並調整準備。此調整為非現金項目，且由於準備金的不可預測性，我們決定不將此調整納入標準化 FFO。不過，夾層計畫的任何實際損失將會納入標準化 FFO。

On Page 16, is our 2020 full year normalized FFO guidance of $1.16 to $1.20 per share, along with our guidance assumptions. As Lou discussed, our asset recycling is included in our guidance with expected completion in the second quarter. This recycling is similar to 2016, we sold the Richmond office tower and the Oceaneering build-to-suit with the proceeds invested in 11 retail centers. This recycling lowered our earnings but increased the quality of the credit behind the leases and NAV.

第 16 頁為我們 2020 年全年標準化 FFO 指引：每股 1.16 至 1.20 美元，並附上指引假設。如 Lou 所述，我們的資產汰換已納入指引，預期於第二季完成。此汰換與 2016 年類似，當時我們出售 Richmond 辦公大樓與 Oceaneering 的量身訂做（build-to-suit）資產，並將所得投資於 11 個零售中心。該次汰換降低了我們的獲利，但提升了租約背後的信用品質與 NAV。

Our 2020 recycling consists of selling 9 centers, one of which closed and 8 of which are under letter of intent. Proceeds will be invested in higher-quality real estate, including 2 Whole Food centers and a multifamily community. These transactions will reduce our NOI by $1.5 million on an annual basis.

我們 2020 年的汰換包含出售 9 個中心，其中 1 個已完成交割，另有 8 個已簽署意向書（letter of intent）。所得將投資於更高品質的不動產，包括 2 個 Whole Foods 中心及 1 個多戶住宅社區。這些交易將使我們的 NOI 年化減少 150 萬美元。

As we've said in the past, real estate is a long-term game and not managed quarter-to-quarter. We believe this recycling increases the quality of our portfolio, our NAV will perform better over time.

如我們過去所說，不動產是一場長期賽局，而非以季度為單位管理。我們相信這次汰換提升了我們投資組合的品質，且我們的 NAV 將隨時間有更佳表現。

Speaking of NAV, please turn to Page 17 of the guidance deck. Growing NAV earnings and the dividend are the main focus of our company. We believe the value we are creating through our unique business model is reflected in the growth of these 3 metrics. We believe this growth equates to our stock outperformance over the past 5 years and increased our equity market cap by 5x.

談到 NAV，請翻到指引簡報第 17 頁。提升 NAV、獲利與股利是我們公司的主要重點。我們相信，我們透過獨特商業模式所創造的價值，反映在這三項指標的成長上。我們相信這樣的成長對應到我們股票在過去 5 年的超額報酬，並使我們的股權市值增加 5 倍。

Now back to the fourth quarter. We raised $25.5 million through our ATM program at an average price of $18.3 per share. For the year, we raised $98.4 million at an average share price of $16.76. With the stock trading above consensus NAV during the fourth quarter, we took advantage of market conditions.

現在回到第四季。我們透過 ATM 計畫以每股平均 18.3 美元的價格募集 2,550 萬美元。全年我們以平均每股 16.76 美元募集 9,840 萬美元。由於第四季股價交易於市場一致預估 NAV 之上，我們把握了市場條件。

At year-end, 77% of our debt was either fixed or hedged with the current interest rate environment, we are being patient with our hedging strategy. Last month, we purchased $100 million of 2-year LIBOR caps at 1.75%. As you've just heard, we have a lot of activity in 2020 with many moving parts. We will continue to be transparent and keep you informed.

在年末，我們的債務中有 77% 在目前的利率環境下為固定利率或已進行避險，因此我們對避險策略保持耐心。上個月，我們以 1.75% 的水準買入了 1 億美元、2 年期的 LIBOR 利率上限（caps）。如同各位剛剛聽到的，2020 年我們有很多活動，且有許多變動因素。我們將持續保持透明並讓各位隨時掌握最新資訊。

Now I'll turn the call back to Lou.

現在我把電話交回給 Lou。

Thanks, Mike. Just a few other items of note. As Mike mentioned, and as you've seen in our press release, we've refreshed our website with several new features, including a sustainability update. As I mentioned last quarter, we are very proud of our decades-long track record in this area. Please take a look if you get the chance.

謝謝，Mike。再補充幾點值得注意的事項。如 Mike 提到的，也如各位在我們的新聞稿中所見，我們已更新網站並加入數項新功能，包括永續發展更新。如我在上季所提，我們對於在此領域數十年來的長期績效紀錄感到非常自豪。若有機會，請務必瀏覽看看。

Secondly, we will be discussing further governance enhancements as well as addressing our dividend at our Board meeting in a couple of weeks

第二，我們將在兩週後的董事會會議中進一步討論公司治理的強化措施，並同時處理我們的股利議題。

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

接線員，我們想開始問答環節。

(Operator Instructions) Our first question comes from Dave Rodgers with Baird.

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

I wanted to start with the dispositions. It definitely sounds like there's more of a quality bias within the portfolio broadly, which I think everybody applauds. But in the last couple of quarters, we've heard about maybe of One City Center sale in Durham and the potential for something to happen at Summit Place. And then kind of the disposition plan came out as a kind of more smaller retail assets. So I guess, maybe talk a little bit more about your thoughts and processes as you went through in thinking about those assets in particular?

我想先從資產處分談起。聽起來整體投資組合確實更偏向品質取向，我想大家都很認同。但在過去幾個季度，我們聽到可能會出售達勒姆（Durham）的 One City Center，以及 Summit Place 可能也會有動作。接著你們公布的處分計畫似乎更偏向一些較小型的零售資產。所以我想請你們多談一點：在思考這些特定資產時，你們的想法與流程是什麼？

Sure, Dave. We had -- when we first evaluated the disposition program, we had our eye on those 2 assets as well as a dozen-or-so retail assets. So it was always going to be weighted a bit towards retail. We decided in the final analysis that one, at City Center, it wasn't good timing to try and sell a building that had substantial WeWork tenant. And in terms of the Summit Place in Charleston, we were overtaken by leasing. Leasing effort started in early fall when school got back, and we've been very pleased with the progress of it. And we've decided that is more probably a long-term hold based on the way the project is being received. So these are things that we will continue to evaluate. We're really happy the way this has turned out with, again, some of our older retail, which is a stalwart in our portfolio, yet not highest growth. But the opportunity to fold into some newer retail as well as multifamily is something we're really excited about for the future.

當然，Dave。我們在最初評估處分計畫時，除了那兩項資產外，也同時關注了約十來個零售資產。因此整體上本來就會稍微偏重零售。在最後的分析中，我們認為第一，就 City Center 而言，當時並不是嘗試出售一棟有相當比例 WeWork 承租的建物的好時機。至於查爾斯頓（Charleston）的 Summit Place，我們則是因為租賃進展而改變了想法。租賃工作在秋季初、學校開學後就開始推進，我們對其進度非常滿意。基於市場對該專案的接受度，我們決定它更可能作為長期持有資產。因此這些事項我們會持續評估。我們很高興目前的結果，尤其是我們一些較老的零售資產，雖然是投資組合中的中流砥柱，但成長性並非最高。不過，能把資金轉入一些較新的零售資產以及多戶住宅（multifamily），是我們對未來非常期待的方向。

How should we anticipate your tenant roster in retail shifting with the assets under contract and how you view this plan going forward? Do you expect smaller -- some of the smaller shops to start to kind of peel off of that list? Is there a plan around tenancy?

就零售而言，隨著已簽約出售的資產，以及你們對此計畫後續的看法，我們應該如何預期你們的租戶名單會出現變化？你們是否預期較小型的店家會開始從名單中逐步退出？在租戶配置上是否有相關計畫？

Mike?

Mike？

Dave, so certainly, with this rotation, we're going to be selling some Food Lions and Harris Teeter centers. And with that change, we're certainly going to see increase with Whole Foods and Amazon as one of the tenants. I would say on the small shops, certainly, there'll be less small shops that are going to be here because with a number of centers we're selling our retail versus what we're buying.

Dave，確實，隨著這次輪動，我們將出售一些 Food Lion 與 Harris Teeter 的商場中心。隨著這項變化，我們的租戶中 Whole Foods 與 Amazon 作為租戶之一的比重將會提高。至於小型店家，我會說，因為我們出售的若干中心相較於我們買入的資產，整體而言小型店家數量確實會變少。

And then last on dispositions, the timing that you mentioned, Mike. I mean, what's the impact from an NOI perspective on the 2020 number versus the negative $1.5 million of kind of long-term dilution from the trades this year that you talked about in your guidance, though?

最後一個關於處分的問題，是你提到的時點安排，Mike。從 NOI 的角度來看，對 2020 年的數字會有什麼影響？相較之下，你們在指引中提到今年交易帶來的長期稀釋約為負 150 萬美元。

Yes. We're trying to get this timed up, so they -- come April, that we'll be selling. We've identified, as you saw in the presentation, all the assets we're buying other than one. We have 2 or 3 candidates we're looking at right now. So we think we can time everything up pretty well other than maybe that one asset, which will be $20-plus million may lag behind. So we're not expecting a huge impact from it.

是的。我們正努力把時點配合好，讓它們在四月左右完成出售。如各位在簡報中所見，除了其中一項之外，我們已辨識出所有要買入的資產。目前我們正在看 2 到 3 個候選標的。因此我們認為除了可能有一項資產（規模 2,000 萬美元以上）會稍微落後之外，其餘都能把時程配合得相當好。所以我們不預期會造成很大的影響。

Great. And last question for me. Lou, you made a comment about keeping the mezzanine pipeline pretty stable into 2020. As you look beyond that, I know you made the comment that it could vary, but what's your confidence level in kind of building that pipeline back up as some of these projects start to mature right now?

很好。我最後一個問題。Lou，你提到 2020 年夾層融資（mezzanine）管線會維持相當穩定。展望更長期，雖然你也提到它可能會波動，但當一些專案開始逐漸成熟時，你對於把這條管線再建立起來的信心程度如何？

Dave, it's -- our confidence level is very high. It's really almost the opposite. It's -- we want to make sure that, that program doesn't expand. We want to -- we like it at the level that it's at and really don't see any issue with keeping it at or near that level. Obviously, it's a bit lumpy, but I think you can see it pretty consistent for the next few years based on the opportunities that are coming to us.

Dave，我們的信心非常高。其實幾乎是相反的情況。我們想確保那個計畫不會擴張。我們喜歡它維持在目前的規模，也不認為把它維持在該水準或接近該水準會有任何問題。當然它會有些起伏，但基於目前送到我們面前的機會，我想你會看到未來幾年都相當一致。

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。

Great. I noticed you increased your disclosure on your construction pipe and something showed up 27th and Atlantic big high-rise apartment in -- on the ocean front of Virginia Beach, what's going on there?

很好。我注意到你們提高了對建設管線的揭露，而其中出現了「27th and Atlantic」這個大型高層公寓案——位於維吉尼亞海灘（Virginia Beach）海濱，這是怎麼回事？

Sure, Dave, that is a -- it will be the -- as we understand it, the only high-rise apartment project on the waterfront on The Strip end in Virginia Beach. We are simply the contractor there. It is the same group that did the hotel next door, same ownership group, which, as you -- I think people may know also has a couple of our officers or most notably, our Chairman and Vice Chairman, our investors in the project.

當然，Dave，那個案子——據我們了解——將會是維吉尼亞海灘在 The Strip 端、臨海水岸唯一的高層公寓專案。我們在那裡僅擔任承包商。該案的團隊與隔壁飯店是同一個團隊、同一個業主團體；而且如你所知——我想大家也可能知道——該團體的投資人中也包含我們的幾位高階主管，最值得一提的是我們的董事長與副董事長，他們是該專案的投資人。

Isn't that a little bit of a conflict? And it looks like you disclosed a $300,000 gross profit in your recent filings on a pretty significant deal.

這樣不會有點利益衝突嗎？而且看起來你們在近期申報文件中，對一筆相當重要的交易揭露了 30 萬美元的毛利，這是怎麼回事？

John, I guess on the conflict, the 27th Street, the job -- the project was offered to the REIT first. We decided to pass on that because the returns on that aren't going to fit within our cost of capital on that one. So that wasn't a conflict, and we're certainly going to make some fees on building that, which is good. I'm not sure what you're talking about on the other -- the $300,000, I'll had to go back and take a look at that. Is that in the Q?

John，關於利益衝突的部分，27th Street 這個工作——這個專案一開始是先提供給 REIT 的。我們決定不做，因為那個案子的報酬率無法符合我們在該案上的資本成本要求。所以那不構成利益衝突；而且我們透過承建該案確實會取得一些費用收入，這是好事。至於你提到的另一點——30 萬美元——我不太確定你指的是什麼，我得回去再看一下。那是在 Q 裡面嗎？

I think it's in the Q. It seems like an awfully low number for an awfully big, complicated project.

我想是在 Q 裡。對於一個非常龐大、複雜的專案來說，那看起來像是一個低得離譜的數字。

We just started the project.

我們才剛開始這個專案。

Sorry. Yes, okay. Sorry.

抱歉。是的，好。抱歉。

Yes, the fees are in the millions, John. The -- we just started the project. So I'm not sure where that's being picked up, but it might be what's been earned to date, I guess, but we'll get into that...

是的，John，費用是以百萬計的。那個——我們才剛開始這個專案。所以我不確定那是從哪裡抓到的數字，但我猜可能是截至目前已賺取的金額，不過我們會再深入說明……

Market rate fees.

按市場水準收取的費用。

Yes, we have a construction fee as well as some development fee in there on the behalf of those people. But yes, just to reiterate, the project came to us first, and we elected to pass. It's going to be a great project, but much like you see a lot of these multifamily projects, it's going to be great from an IRR basis. If somebody levers it up, they have something like a 90% loan. And so their cash-on-cash return is going to work out really well, but it doesn't work real well in the REIT space, as you all know.

是的，我們有一筆施工費，另外也有一些開發費，代表那些人收取。不過是的，再重申一次，這個專案最先找上我們，而我們選擇放棄。這會是一個很棒的專案，但就像你看到的許多這類多戶住宅專案一樣，從 IRR 的角度會很漂亮。如果有人把槓桿拉高，像是做了約 90% 的貸款。那麼他們的現金報酬率（cash-on-cash return）會算得非常好看，但如各位所知，在 REIT 的架構下就不太適用。

I'm assuming you disclosed all that and that has to do with independent board members only, et cetera?

我假設你們都已揭露，而且那只跟獨立董事成員等相關，對吧？

Correct.

正確。

Yes.

是的。

What Q did you put it in? Or what K did you put it in?

你把它放在哪一期的 Q？或是放在哪一份 K？

It was in the third quarter. It will be more -- should obviously be more in it now because initially, there was a smaller GMP or a smaller contract that was done initially for some site work in tiles until they get the full GMP, which is now -- which was now signed in this past quarter.

是在第三季。現在裡面應該——顯然應該會更多，因為一開始先做的是較小的 GMP 或較小的合約，先做一些場地工程與鋪磚之類的工作，等他們拿到完整的 GMP；而完整的 GMP 現在——也就是在上一季已簽署。

All right. Second one, new board member seems to be more kind of Virginia centric, political-party driven, all that sort of thing. I was at the NMHC Conference a month ago, and there are dozens of qualified women who are with real estate experience with REIT experience, maybe give you someone who's outside of the Commonwealth of Virginia, but you seem to -- the new board member seems a little bit unusual. Can you expand on that?

好。第二個，新任董事似乎比較偏維吉尼亞本地、也帶有政黨色彩之類的。我一個月前在 NMHC 會議上，看到有數十位合格的女性，具備房地產經驗、也有 REIT 經驗；也許你們可以找一位不在維吉尼亞州的人，但你們——這位新董事看起來有點不尋常。你能多說明一下嗎？

Sure. And Ms. McAuliffe is extremely qualified and kind of breezed through the process with our existing independent Board members, basically because of her background. As a lawyer, with SEC experience and capital markets experience as well as her involvement in charitable causes as well as ESG activities, she was a perfect addition for what we were looking for. And you're right, there are a lot of qualified candidates out there. But that's -- she's the one.

當然。McAuliffe 女士非常合格，基本上憑藉她的背景，在我們現有的獨立董事成員審核流程中很順利就通過了。她身為律師，具備 SEC 經驗與資本市場經驗，並且也參與慈善事業以及 ESG 活動，因此對我們要找的人選來說是完美的補強。你說得沒錯，外面確實有很多合格的候選人。但——就是她。

Okay. I noticed the Whole Foods in Delray went from a payoff right now to something that gets paid off a year from now, and all of a sudden has a discounted purchase option, what sort of happened there?

好。我注意到 Delray 的 Whole Foods 從「現在就要清償」變成「一年後才清償」，而且突然出現折價的購買選擇權，這中間發生了什麼？

So John, that's going to get paid off in the fourth quarter, I mean, the second quarter of this year. Certainly, we have a relationship with Collins. And as part of that, they offered to see if we're interested in buying those, but we had to obviously come up with the right price that works for us, which we negotiated. That will be part of when we sell the centers, that will be part of the 1031. So the cash will flow through as part of a 1031 and back to us.

所以 John，那筆會在第四季——我是說今年第二季清償。當然，我們和 Collins 有合作關係。作為其中一部分，他們提出看看我們是否有興趣買下那些資產，但我們顯然必須談到一個對我們有利的價格，我們也已經談妥。那會在我們出售這些中心時，作為 1031 交換的一部分。所以現金會以 1031 的方式流轉，最後回到我們這裡。

Yes. Are you keeping the tax protection for the OP unit holders? Or is that burning off? I think that expires second quarter of this year, which was -- congratulations, 7 years since your IPO.

是。你們會保留對 OP 單位持有人（OP unit holders）的稅務保護嗎？還是那個保護會到期消失？我記得那在今年第二季到期——順帶恭喜，距離你們 IPO 已經 7 年了。

Thanks. Yes, whatever the original provisions of the tax protection are there are what's going to be placed.

謝謝。是的，原本稅務保護條款怎麼規定，就會照那些原始條款來執行。

So essentially, you're going to do a 1031 low tax basis transfers continue to protect the OP unitholders?

所以本質上，你們會做一個 1031，讓低稅基的移轉持續，以保護 OP 單位持有人？

All right. So OP units, and I'm going to say all shareholders, John, it's just a -- there was no reason not to do one here that we can think of.

好。所以 OP 單位——我也可以說是所有股東，John——這只是……我們想不到有任何理由不在這裡做一個（1031）。

Okay. Acquisition for Whole Foods, ones in Delray and ones in Akron, Ohio. Last time I checked, LeBron James is no longer in Akron, Ohio. What's the split in terms of investment in Akron, Ohio and the cap rate versus investment in Delray Beach and the cap rate?

好。關於 Whole Foods 的收購，一個在 Delray，一個在俄亥俄州 Akron。我上次查的時候，LeBron James 已經不在俄亥俄州 Akron 了。在投資金額的拆分上，Akron 與 Delray Beach 各是多少？以及各自的資本化率（cap rate）是多少？

We negotiated those together. It was a -- we had to both -- we had to buy both, and they wanted to sell both. It was altogether. So we negotiated the 6 between the 2. Obviously, the Delray, we traded at a better cap rate and the Akron not as well.

我們是把那兩個一起談的。那是——我們必須兩個都買，而他們也想兩個都賣。是打包在一起的。所以我們在兩個之間談出整體 6（cap）。顯然 Delray 的成交 cap rate 較好，而 Akron 沒那麼好。

How much is the Akron and how much is Delray of the -- you have to know the difference between the 48 million. If it's 40 million and 8 million? Or is it 24 million and 24 million?

那 4,800 萬裡面，Akron 多少、Delray 多少？你們一定知道差異吧。是 4,000 萬和 800 萬？

It's neither, John. We negotiated a 6 cap on the NOI for those 2 centers.

都不是，John。我們是針對那兩個中心的 NOI 談了一個 6% 的 cap。

Akron's NOI is lower than in Delray. So it's just more of it is weighted towards Delray.

Akron 的 NOI 比 Delray 低。所以權重自然比較偏向 Delray。

Okay. And then I was looking at your mezz, Page 15 of your guidance. And Interlock Inc. exit fee, says Interlock Inc. gets paid off in 2021, I think, but you have exit fees in 2020 amortization of them and then Annapolis Junction has $5 million of amortization of exit fees, but I thought that happened in 2019. So I'm surprised that there's 2020 exit fees in both Interlock and Annapolis Junction. One because...

好。然後我在看你們的夾層融資（mezz），在你們指引的第 15 頁。Interlock Inc.退出費（exit fee）那裡寫 Interlock Inc. 會在 2021 年清償，我想是這樣，但你們在 2020 年有退出費的攤銷；而 Annapolis Junction 有 500 萬美元的退出費攤銷，但我以為那是在 2019 年發生的。

On Annapolis Junction, the $5 million that was the purchase option fee. Remember that, that was the loan modification fee that closed in the fourth quarter of '18. We received the cash, remember it was amortized over a year. In addition to that, on this and the Interlock is part of our negotiations on this. As we've talked about, we like getting 80% of the profit on these. Part of that are exit fees that are built into these loans. We -- what we've decided to do from an accounting standpoint is not to recognize -- start recognizing those fees until we know that they are collectible, and certainly, under GAAP, you can't wait until the day you collect the money to start recognizing those fees. We determined here this past quarter that the timing was right as those projects moved along, that it was time to start amortizing those exit fees, which we'll amortize over the next couple of years.

Annapolis Junction 的那 500 萬美元是購買選擇權費用。記得嗎？那是 2018 年第四季完成的貸款修改費。我們已收到現金，記得是攤銷一年。此外，這個以及 Interlock 也都是我們談判的一部分。如同我們談過的，我們喜歡在這些案子上取得 80% 的利潤。其中一部分就是內嵌在這些貸款裡的退出費。我們——從會計處理的角度，我們決定在確定可收回之前，不先開始認列這些費用；當然，依 GAAP，你也不能等到實際收到款項那一天才開始認列這些費用。我們在上一季判斷，隨著這些專案的進展，時點已經成熟，可以開始攤銷這些退出費；接下來幾年我們會持續攤銷。

The -- how much of -- Dave Rodgers asked a good question on Durham and the reason that didn't sell is because of WeWork. How much of your office -- the office at Interlock is the WeWork lease?

關於——有多少——Dave Rodgers 針對 Durham 問了一個好問題，而之所以沒有賣成，是因為 WeWork。你們的辦公室——Interlock 的辦公室中，有多少是 WeWork 的租約？

Goodness.

天啊。

40.5%.

40.5%。

40% may be.

可能是 40%。

40%, I think, in the NOIs, WeWork.

我想在 NOI 裡，WeWork 佔 40%。

So do you feel comfortable collecting an exit fee in 2020 for a loan that matures in 2021 and has WeWork as 40% of the tenant?

那麼，對於一筆 2021 年到期、且 WeWork 佔租戶 40% 的貸款，你們在 2020 年收取退出費（exit fee）會覺得安心嗎？

We feel real comfortable with the Interlock and the demand that's there. And in fact, we would recognize an increase in the value of the property if WeWork weren't there. Based on the tenants that are there in the market. However, WeWork continued to do extremely well in Atlanta and is full bore on that space. So they're going to be there, and we're very comfortable with where we sit. As we said, and I think this came up in the last quarter. Just about everybody that you would talk to, CEOs across the country, will tell you that co-working space is here to stay. It's somewhere around 2% of the market right now. It's going to get level off according to the pundits at 10% to 15%. So whether or not which names might survive and get bigger and better or go away is not a bet that we're willing to make. But in terms of the locations and the use, we feel very comfortable with what we have there. And in fact, as I mentioned last quarter, we just leased 30,000 square feet to a co-working user here at Town Center. So it's here to stay, and we're going to take advantage of it. Just like everything else in our portfolio, we're not going to make a big bet. Though that's just prudent, but we're comfortable with where we sit.

我們對 Interlock 以及那裡的需求非常有信心。事實上，如果 WeWork 不在那裡，我們會認為該物業的價值會更高。這是基於現有租戶以及市場狀況。不過，WeWork 在亞特蘭大持續表現非常好，並且全力投入那個空間。所以他們會在那裡，而我們對我們目前的位置非常放心。如同我們所說的，而且我想這在上一季也提到過。幾乎你能訪談到的全國各地 CEO 都會告訴你，共享辦公空間（co-working space）會長期存在。目前大約佔市場 2%。依據評論人士的看法，未來會趨於 10% 到 15% 的水準。所以，哪些品牌會存活並做大做強、或是消失，這不是我們願意下注的事情。但就地點與使用而言，我們對我們在那裡擁有的配置非常有信心。而且如我上季提到的，我們剛在 Town Center 租出 30,000 平方英尺給一個共享辦公使用者。所以它會長期存在，而我們會加以利用。就像我們投資組合中的其他一切一樣，我們不會下重注。這只是審慎作法，但我們對目前的狀況感到安心。

And John, our underwriting here, we certainly used a cap rate we think, works with WeWork in that building. In addition to that, there are significant tax credits in this project, combination of the invested land or -- invested lantern bonds as well as brownfield credits.

另外 John，就我們這裡的承作評估（underwriting）而言，我們確實採用了我們認為在該大樓有 WeWork 也適用的資本化率（cap rate）。此外，這個專案還有可觀的稅額抵免（tax credits），包括投入的土地或——投入的 lantern bonds，以及棕地（brownfield）抵免。

Okay. And then lastly, you guys do a great job of outlining your NAV. And what we noticed is that if you just hold the cap rates fixed, your NAV is about the same now as it was in early 2015, your NAV per share at a fixed cap rate. Do you guys -- does that concern you guys? I don't see NAV going up. Kind of it's on the curve going down the last few quarters. Does your math, Mike, tell you the same thing? And does that concern you?

好的。最後，你們在說明 NAV 方面做得很好。我們注意到，如果把資本化率固定不變，你們的 NAV 大致和 2015 年初差不多，也就是在固定 cap rate 下的每股 NAV。你們——這會讓你們擔心嗎？我沒有看到 NAV 上升。過去幾季看起來有點沿著曲線往下。Mike，你的計算也顯示同樣的情況嗎？這會讓你擔心嗎？

See a couple of things on that, John. I think that when you do your calculation, you're using the same cap rate, and we believe we have been increasing the quality of our assets over time. The other thing that, say, in this past quarter that hurts us as you take the redevelopment that we have going on right now with the -- between the Cosmo and Columbus Village, we've got assets where the NOI is significantly less than if it was stabilized. So on our NAV page, you can only get the NOI of, I'm going to say, a building that's 70% leased. And then on top of that, we're only adding the cost of the redevelopment back on the NAV page. So there's a big delta there between the value of what that property is versus what's showing on this NAV page.

John，這裡有幾點。我想你在計算時使用了相同的資本化率，而我們相信我們隨時間推進一直在提升資產品質。另外一點是，例如在本季，對我們不利的是：你把我們目前正在進行的改造重建（redevelopment）納入計算——在 Cosmo 和 Columbus Village 之間，我們有一些資產的 NOI 明顯低於穩定營運（stabilized）時的水準。因此在我們的 NAV 頁面上，你只能看到我姑且說，一棟出租率 70% 的大樓所產生的 NOI。再加上，我們在 NAV 頁面上只把改造重建成本加回去。所以該物業的實際價值與 NAV 頁面上呈現的數字之間存在很大的差距。

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

下一個問題來自 Janney 的 Rob Stevenson。

Lou, what's happening with the construction gross profit that you're nearly doubling from $4.3 million to $7.6 million in 2020? Is that just more volume being put through the construction company?

Lou，你們 2020 年的營建毛利（construction gross profit）幾乎從 430 萬美元翻倍到 760 萬美元，這是怎麼回事？只是有更多量透過營建公司在跑嗎？

Yes, it's -- yes, thanks. It's a good question. We -- so basically, what's happening is we have a lot more third-party volume this year versus internal volume. And as everybody knows, you can't -- you don't make fees on working for the REIT. And last year, the construction company had a much higher mix of in-house projects versus third-party projects, which we've illustrated in the guidance deck. So it's more volume. It's also -- they've been able to negotiate some pretty healthy fees. Most of the work is being done on a 4% basis. And then as you can see by the bar chart on the construction page, that will continue to ebb and flow. We're not -- this isn't commodity construction. Our people are vested in these deals whether they're third party or their mezzanine or they're internal. They baby them from inception all the way through completion. And so it's not easily multiplied or scaled up, and our intent is not to scale it up. So as the mix continues to fluctuate between internal and external projects, you'll see those numbers continue to fluctuate as well.

是的——是的，謝謝。這是個好問題。我們——基本上，發生的情況是：今年第三方業務量比內部業務量多很多。而且大家都知道，你不會因為替 REIT 做事而收取費用。去年，營建公司的案源組合中，自家專案的比重遠高於第三方專案，我們也在指引簡報（guidance deck）中說明過。所以是更多的量。另外——他們也談到了一些相當不錯的費率。大部分工作是以 4% 的基礎計費。而且如你在營建頁面的長條圖所見，這會持續起起落落。我們——這不是大宗商品式的營建。我們的人員在這些案子上都有投入，不論是第三方、夾層（mezzanine）或內部案。他們從一開始到完工都全程細心照料。因此它不容易倍增或擴張規模，而我們的意圖也不是要擴張規模。所以，隨著內部與外部專案的組合持續波動，你會看到這些數字也會跟著波動。

Okay. I just wanted to make sure it wasn't just one project or some sort of early delivery bonus or something like that, that was skewing the numbers on a one-time thing?

好的。我只是想確認，這不是因為某一個專案或某種提前交付獎金之類的一次性因素，導致數字被扭曲？

No, it's really all -- it's all volume. I think there's very little savings split income in there, if any.

不是，真的都是——都是量的因素。我想裡面幾乎沒有節省分成收入（savings split income），如果有的話也非常少。

Okay. And then Mike, did I hear right that looking at Page 5 of the guidance, the acquisitions and dispositions, obviously, Lightfoot's already been done. But the other transactions, the 2 dispositions and the 3 acquisitions, excluding the 2 TBD ones are all supposed to close some time in the second quarter or by the second quarter?

好的。然後 Mike，我有沒有聽對：看指引第 5 頁的收購與處分，顯然 Lightfoot 已經完成了。但其他交易，那 2 筆處分和 3 筆收購（不含 2 筆 TBD 的），都預計在第二季的某個時間點或在第二季之前完成交割嗎？

We expect them to -- yes, we expect them to close in the first quarter. The apartments and the 2 Whole Foods are all set up. We have been -- we are through due diligence, and we're in good position on those to be ready to close as well as Nexton.

我們預期它們——是的，我們預期會在第一季完成交割。公寓以及 2 個 Whole Foods 都已經安排就緒。我們已經——我們已完成盡職調查（due diligence），而且在這些案子上處於良好位置，隨時可以交割，Nexton 也是如此。

Okay. And then the dispositions, the Greentree and the 7 shopping centers?

好的。那處分部分，Greentree 和那 7 個購物中心呢？

Greentree, we've got a signed purchase and sale agreement at this time, and that's on schedule. On the 7 shopping centers, we have a signed LOI, expect to have a signed purchase and sale agreement this week. And with the timing within everything should put us in the beginning of April for closing on that.

Greentree 方面，我們目前已簽署買賣協議（purchase and sale agreement），而且進度符合時程。至於那 7 個購物中心，我們已簽署意向書（LOI），預期本週會簽署買賣協議。以整體時程來看，應該會在 4 月初完成交割。

Okay. And are the 7 shopping centers going to one purchaser? Or are they being spread around in multiple transactions?

好的。那這 7 座購物中心會賣給同一個買家嗎？還是會分散在多筆交易中？

One. Yes, one buyer.

同一個。是的，一個買家。

Okay. When does the Apex lease commence? And when does it start paying actual cash rent versus just the GAP amortization?

好的。Apex 的租約何時開始生效？以及它何時開始支付實際現金租金，而不只是 GAP 攤銷？

Yes, we've got GAP starting in August. And they take occupancy and start paying rent in -- we're expecting, right around the 1st of November.

是的，我們的 GAP 會在 8 月開始。他們會進駐並開始付租金——我們預期大約在 11 月 1 日左右。

Okay. So the Apex lease shouldn't really have much of an impact on 2020?

好的。所以 Apex 的租約對 2020 年應該不會有太大影響？

No, it really doesn't.

不，確實沒有。

It's actually a drag on 2020.

實際上它對 2020 年是個拖累。

Okay. Any known move-outs of impact in the retail and office portfolios over the next 6 or 8 quarters at this point?

好的。就目前來看，未來 6 到 8 個季度在零售與辦公投資組合中，有沒有任何已知、會造成影響的退租？

Nothing that -- nothing that really sticks out. I'm not sure if everybody understands what's happening here at Town Center. We did have a move out or Hampton University downsized at our headquarters building, and we're taking advantage of that by moving our construction company back into the building where they originally started. Obviously, their rent is eliminated. And at some point, that's going to be a hit in same-store NOI, I guess, maybe next quarter, Mike?

沒有什麼——沒有什麼特別突出的。我不確定大家是否都了解 Town Center 這裡正在發生什麼。我們確實有一個退租情況：Hampton University 在我們的總部大樓縮減了面積，而我們正好利用這點，把我們的營造公司搬回他們最初起家的那棟樓。顯然，他們的租金就被取消了。而在某個時間點，這會對同店 NOI 造成衝擊，我想可能是下個季度吧，Mike？

Yes.

是的。

So we'll be explaining that one. But outside of that, there's really nothing material.

所以我們會解釋這一項。但除此之外，真的沒有什麼重大的。

Okay. And then last one for me. Mike, any known difference today between NAREIT and normalized FFO in 2020?

好的。那我最後一個問題。Mike，目前對於 2020 年，NAREIT FFO 與標準化（normalized）FFO 之間，有沒有任何已知差異？

So we're going to have a couple of things. Obviously, it's the biggest driver has been the mark-to-market on our hedging strategies. It has been the biggest difference over the last couple of years. And as I was stating in my remarks, is with CECL, because of the unpredictability of that, it's almost like a mark-to-market, we're going to exclude that. The way CECL is going to work in a pooled approach is we're going to take a look at the overall balance and then adjust the reserves. So that reserve is going to be going up and down based upon the total outstanding balance as well as whatever the data is saying on what the losses should be on that. I would expect that, that will increase FFO, would not normalize this year because we're going to be starting at a higher, I'm going to say, balance to begin with -- outstanding balance with that $2 million to $4 million initial reserve that will come down as the balance comes down over the year.

所以我們會有幾個項目。顯然，最大的驅動因素一直是我們避險策略的按市價（mark-to-market）調整。這在過去幾年一直是最大的差異來源。而正如我在發言中提到的，因為 CECL 的不可預測性，它幾乎就像按市價調整一樣，我們會把它排除在外。以組合（pooled）方式來看，CECL 的運作方式是：我們會檢視整體餘額，然後調整備抵。因此，該備抵會依據總未償餘額，以及資料所顯示的預期損失水準而上下變動。我預期這會提高 FFO，但今年不會將其標準化，因為我們一開始會從較高的——我會說——未償餘額起步，並且會有 200 萬到 400 萬美元的初始備抵，隨著年度內餘額下降而逐步回落。

Our next question comes from the line of Jamie Feldman with Bank of America Merrill Lynch.

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

I guess just sticking with WeWork and co-working. Number one, are there any spaces that WeWork has not -- has either given back or plans to give back or hasn't started construction on that you're waiting for?

我想繼續問 WeWork 和共享辦公。第一，有沒有任何空間是 WeWork 尚未——不論是已退回或計畫退回，或是尚未開始施工、你們仍在等待的？

No. We're not seeing any hesitation whatsoever, and they're doing well in Durham. They're preparing. I mean, they're working on construction in Baltimore as well at the Interlock in Atlanta.

沒有。我們完全沒有看到任何猶豫，他們在 Durham 的表現也很好。他們正在準備。我的意思是，他們也在亞特蘭大 Interlock 的巴爾的摩案場進行施工。

Okay. And then the new lease, you guys mentioned -- it sounds like it's not with WeWork, it's with another provider. Is that a shared revenue lease? Or is that a straight contract lease? And then actually, when you think about the other leases in the portfolio, how are those structured?

好的。然後你們提到的新租約——聽起來不是跟 WeWork，而是跟另一家業者。那是分潤（shared revenue）租約嗎？還是一般固定租約？另外，當你看投資組合中其他租約時，它們的結構是怎麼安排的？

Yes. So that's a great question, Jamie. I appreciate you asking that because we are not interested in going into business with any of our tenants. Co-working included. So both in Durham as well as in Baltimore and at the Interlock, those are all full value leases. We understand that a lot of those co-working companies are proposing to landlords, the whole shared revenue model. We think our story is complex enough without getting in the business with our tenant. So you won't see us. I guess, never say never, but I'm not thinking you're going to see that appear in our model.

是的。Jamie，這是個很好的問題。我很感謝你問這個，因為我們不想跟任何租戶一起做生意。共享辦公也一樣。所以不論是在 Durham、巴爾的摩，或是在亞特蘭大 Interlock，那些都是全額（full value）的租約。我們知道很多共享辦公公司會向房東提出整套分潤模式。我們認為我們的故事已經夠複雜了，不需要再跟租戶一起做生意。所以你不會看到我們這麼做。我想，話別說死，但我不認為你會看到這出現在我們的模式裡。

Okay. And then who's the new -- you said you signed a new one with a different provider, who's the provider?

好的。那新的——你說你們跟不同的業者簽了一個新的，那家業者是誰？

Yes, it's -- are they -- I'm looking around, the company is called Gather. My only hesitation was, I was not sure that that's been announced or that they have announced it here locally. But yes, the it's a company called Gather. They have several locations. It's more a regional rather than a national.

是的，它是——他們——我在找一下，公司叫 Gather。我唯一猶豫的是，我不確定這是否已經對外宣布，或他們是否已在本地宣布。但對，就是一家叫 Gather 的公司。他們有好幾個據點。比較偏區域型，而不是全國型。

Okay. And is there like a conference center component to it or it's strictly just office?

好的。那它有像會議中心的組成嗎？還是就純粹是辦公？

No, they have got some -- they've got some - they are called Gather and they've got some Gather space. So I understand it's a pretty unique looking model. And for us, that is third-generation space. And so it's a -- we think, in the midst of almost 1 million square feet of office space here at Town Center. It's a nice feature to have, it's very low-risk for us.

不，他們有一些——他們有一些——他們叫 Gather，也有一些 Gather 空間。所以我了解這是一個外觀上相當獨特的模式。對我們而言，那是第三代空間。因此我們認為，在 Town Center 這裡將近 100 萬平方英尺的辦公空間之中，有這樣的設施是個不錯的特色，對我們來說風險非常低。

Okay. And then when you look at your retail portfolio, any additional names on your watch list this quarter? Or any -- you're just kind of watching thinking you may have some vacancy coming?

好的。那當你看你們的零售投資組合時，這一季觀察名單上有新增任何品牌嗎？或是你們只是持續觀察，覺得可能會出現一些空置？

Jamie, it's a never-ending story. They -- we don't really have anything new on the watch list, the usual suspects are still out there. And we still have Bed Bath & Beyond. We still have 4 of those. We have 5 of the pet stores and various and sundry others. We're not seeing any uptick in that. In fact, sales across the portfolio on the retail side, have all seem to be on the increase. So I think brick-and-mortar is alive and well. But as you know, you've got to constantly look at the portfolio and evaluate it for risk. But we're not really seeing any issue showing up beyond what you read in the headlines on some of these smaller tenants.

Jamie，這是一個永無止境的故事。我們的觀察名單上沒有什麼新的，老面孔還是在。我們仍然有 Bed Bath & Beyond。我們還有 4 家。我們有 5 家寵物用品店，以及其他各式各樣的。我們沒有看到這方面有任何升溫。事實上，整個投資組合在零售端的銷售額似乎都在增加。所以我認為實體零售仍然活得好好的。但如你所知，你必須不斷檢視投資組合並評估風險。不過，除了你在新聞標題上看到某些小型租戶的情況之外，我們並沒有真的看到任何問題浮現。

What kind of reserves are in your '20 guidance outlook?

你們在 2020 年指引展望中包含了哪些類型的準備金（reserves）？

When we do our -- when we do our outlook, what we do is we take a look at rollover risk and bad debt and everything like we do across the entire portfolio. We don't do a -- I'm sorry, across the portfolio, we do it on a property-by-property basis. So it's built into what we expect for nonrenewals, and et cetera.

當我們做——當我們做展望時，我們會像檢視整個投資組合一樣，去看展期風險、壞帳以及所有相關因素。我們不會——抱歉，不是以整體投資組合的角度，而是以每一個物業逐一檢視。所以這些都已經反映在我們對不續約等情況的預期之中，等等。

Okay. And then you had mentioned probably using the ATM to keep your leverage in check. What's the range that you're comfortable with at the high end?

好的。然後你提到可能會使用 ATM 來讓槓桿維持在可控範圍內。你們在高端可接受的區間是多少？

Well, our guidance is $80 million for the year. Certainly, if the stock is trading at higher levels, $19 or so. I'm sure we'll get more aggressive...

嗯，我們對今年的指引是 8,000 萬美元。當然，如果股價在更高的水準交易，比如 19 美元左右。我相信我們會更積極一些……

We'll have to look at how much more do we to get. Yes.

我們得看看我們還要做多少才能達到。是的。

I guess I was just thinking about what's the high end of your leverage comfort?

我想我只是想了解你們對槓桿舒適區間的上限是什麼？

Like I've discussed, that's total debt-to-EBITDA at 8x and staying in the 6x on a core basis.

就像我討論過的，總負債對 EBITDA 是 8 倍，核心口徑則維持在 6 倍左右。

Okay. And then you deliver or Wills Wharf delivers this year, 68% lease. Can you talk about the leasing prospects for the rest of that space? And then also just can try on kind of how we should -- what the tenant demand looks like for that project, too? And maybe any other big picture color on that project since it was pretty recently announced?

好的。然後你們今年交付，或 Wills Wharf 今年交付時，出租率是 68%。你能談談剩餘空間的招租前景嗎？另外也請談談我們應該如何看待——該專案的租戶需求大概是什麼樣子？以及既然這個專案是最近才宣布的，是否也能提供一些更宏觀的補充說明？

Sure. So at Wills Wharf, there's -- it feels like every quarter, we should be able to announce the rest of the tenants that are going to be in that building, predominantly because there's a good number of tenants circling around the space. We're not trading paper with anybody yet, which tells us that it will be towards the end of the year before we actually would have the projects inked. But there are no shortage of prospects for the -- we've got about 100,000 square feet left there. As I said earlier in my comments, our expectation is that, that building is going to stabilize by the end of this year. At Ten Tryon, you guys saw the announcement, you might have seen, there's a lot of speculation in the press about who the anchor tenant is and you can take a look at that. But we feel very good about the Charlotte market. Between the rollover space in Charlotte as well as the increase on a daily basis of the population and companies coming in, we think Ten Tryon is going to be a home run. We just got to get -- we got to work really quickly and get the thing underway so that everybody knows it is real before we do any speculative leasing.

當然。在 Wills Wharf，感覺每一季我們都應該能宣布其餘將進駐該大樓的租戶，主要是因為有相當多租戶正在圍繞這個空間洽談。我們目前還沒有跟任何人進入實質的文件往來，這也告訴我們，可能要到年底我們才會真正把合約簽妥。但潛在客戶並不缺——我們那裡大約還剩 10 萬平方英尺。如我先前評論所說，我們預期那棟大樓會在今年底前達到穩定。至於 Ten Tryon，你們看到了公告，也可能看到媒體對主力租戶是誰有很多揣測，你們可以去看看。但我們對夏洛特市場非常有信心。結合夏洛特的到期換租空間，以及人口與企業每日持續增加的趨勢，我們認為 Ten Tryon 會是一個大成功。我們只是得——我們得非常快速地推進並讓專案啟動，讓大家知道它是確定的，然後我們才會做任何投機性的招租。

Okay. And what do you think the delay is in getting the Wills Wharf space leased up?

好的。那你認為 Wills Wharf 的空間遲遲未能出租滿的原因是什麼？

I don't know that it's a delay. It's just we're dealing with large creditworthy tenants who have processes that take a long time. Between the RFP processes and all the hands it's got to go through, it's a frustratingly long process. There's also -- I think there was some hesitation earlier and people wanted to actually kick the tires and see this space, and we could only have tours over the last couple of months that people could actually get up on those floors.

我不確定那算不算延遲。只是我們面對的是大型、信用良好的租戶，他們的流程本來就需要很長時間。從 RFP 流程到需要經過的各個關卡，這是一個長到令人沮喪的過程。另外——我想先前也有一些猶豫，大家想先實地看看這個空間，而直到最近幾個月，人們才真的能上到那些樓層進行參觀。

Our next question comes from the line of Barry Oxford with D.A. Davidson.

我們的下一個問題來自 D.A. Davidson 的 Barry Oxford。

Getting back to the WeWork, and is the parent company on that lease? Or is it just a entity that is in the space?

回到 WeWork 的問題，該租約是由母公司承租嗎？還是只是進駐該空間的某個實體？

Again, in all 3 of those instances, we have a corporate guarantee on -- behind the leases.

再說一次，在這三個案例中，我們的租約背後都有公司保證。

Okay. Okay, great. When I look at your all switch, moving a little bit out of retail and more into kind of apartments and office, is that just more a function of kind of your portfolio? Or is it what you're seeing in the marketplace as far as risk-adjusted returns and growth?

好的。好的，很好。當我看你們整體的轉換，零售比重稍微下降，更多轉向公寓與辦公室，這主要只是你們投資組合結構的反映嗎？還是你們在市場上看到的風險調整後報酬與成長所驅動？

It's a little bit of everything, Barry. The -- a few years ago, when Mike alluded to, the transaction we did, which had our retail portfolio swell, and that was when we pulled out of -- we sold about $140 million worth of office space and bought 11 centers at the time. And the move there, again, was negative to earnings, higher on credit, which obviously would move your cap rate that people are looking at when judging your portfolio. Now it's more a function of where the opportunities are. The company has long been a specialist in these mixed-use assets like we have here at Town Center. And those opportunities are coming faster than retail opportunities or at least high-value retail opportunities. So I think that's why you're seeing it skew that way. And everything is also -- seems to want to have a multifamily component in it. So the whole movement towards a live, work, play environment is exactly where we -- that's our wheelhouse and has been for 30 years. And it's just manifesting itself more and more as cities start to reidentify and there's lesser -- less emphasis on the suburbs. So I think it's an overall market move, and we're well positioned to capture it.

Barry，這是多種因素的綜合。——幾年前，正如 Mike 提到的，我們做了一筆交易，使我們的零售投資組合擴大；那時我們退出——我們賣了約 1.4 億美元的辦公空間，並在當時買了 11 個中心。而那次調整，同樣是對盈餘不利、但信用品質更高，這顯然會影響人們在評估你們投資組合時所看的資本化率。現在則更多取決於機會在哪裡。公司長期以來一直是像我們在 Town Center 這裡所擁有的這類複合用途資產的專家。而這些機會出現得比零售機會更快，或者至少比高價值的零售機會更多。所以我想這就是你看到它往那個方向傾斜的原因。而且一切似乎也都希望包含多戶住宅的組成。因此，整體朝向「住、工作、娛樂」環境的趨勢，正是我們——這是我們的強項，而且 30 年來一直如此。而且隨著城市開始重新定位、對郊區的重視程度降低——更少強調郊區，這個趨勢正越來越明顯。所以我認為這是整體市場的移動，而我們也處於很好的位置去把握它。

Okay. Great. And then last one is -- I know it's hard to look into 2021. But is it safe to assume that the dispositions will flow substantially in 2021?

好的。很好。最後一個問題是——我知道很難去看 2021 年。但是否可以合理假設，處分（出售）會在 2021 年大幅落地？

Yes. This is -- we've been talking about how the company has been able to make it through good times and bad because we keep our portfolio fresh. We evaluate it constantly for what doesn't belong there any longer or where we think we can achieve peak value. This effort, this past year, over the past 6 months was larger than usual. Again, a number of those older centers were coming towards the end of leases and into option periods. And not that they are bad projects, I think they're great assets. But we saw the opportunity to upgrade and again, move to cap rate, move the multiple and the stock by upgrading the portfolio. I don't think you'll see -- and again, you're right, it's hard to crystal ball it. But we don't have much more in the portfolio that we would want to sell. Obviously, everything is for sale for a price. But as far as us pushing the envelope to try and turn over the portfolio, I don't see that kind of effort into 2021. I think this was the big push, and then we'll be sitting tight largely.

是的。我們一直在談，公司之所以能在景氣好壞時都能走過來，是因為我們會讓投資組合保持新鮮。我們會持續評估哪些資產不再適合留在組合中，或哪些地方我們認為可以實現峰值價值。這項工作在過去一年、尤其過去 6 個月，比平常更大規模。同樣地，其中一些較老的中心正接近租約尾聲並進入選擇權期間。並不是說它們是差的專案，我認為它們是很好的資產。但我們看到了升級的機會，而且再次，透過升級投資組合來改善資本化率、提升估值倍數與股價。我不認為你會看到——而且你說得對，這很難預測。但在投資組合裡，我們沒有太多還想賣的東西。當然，只要價格合適，一切都可以出售。但就我們主動加大力道、試圖加速周轉投資組合而言，我不認為 2021 年會有那種程度的動作。我認為這次是一次大的推進，之後我們大致會按兵不動。

Right. Then by definition, then, would you guys be more reliant on issuing equity in 2021 or not necessarily?

對。那麼按定義來說，你們在 2021 年會更依賴發行股權嗎？還是不一定？

Not necessarily. Again, as Mike mentioned, the pipe -- the development pipeline is stacking up again. We're going to fund that through the ATM largely this year. I would suspect our ATM activity would continue into next year. God willing, the stock market is still as good to us. So it's a pretty steady flow for us. And again, as the development pipeline that we've recently delivered stabilizes and those rent -- we get those rent increases, I think there's going to be plenty of room for debt as well.

不一定。再說一次，如 Mike 提到的，管線——開發管線又開始堆積起來了。今年我們將主要透過 ATM 來為此提供資金。我猜想我們的 ATM 活動會延續到明年。但願股市仍然對我們這麼友善。所以對我們而言，這是一個相當穩定的資金流。而且同樣地，隨著我們近期交付的開發管線逐步穩定，且租金——我們取得那些租金調升，我認為也會有很大的空間可以使用債務。

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

我們的下一個問題是來自 Stifel 的 John Guinee 的追問。.

I forgot to ask. Mike, going back to the mezz program and including your purchase option or exit fees. Are you able to book those as GAAP income and run it through NAREIT defined? Or is there a spread here between normalized and NAREIT-defined with these exit fee amortization?

我忘了問。Mike，回到夾層（mezz）計畫，並把你們的購買選擇權或退出費用算進去。你們能把那些認列為 GAAP 收入並納入 NAREIT 定義的口徑嗎？或者在這些退出費用攤銷上，標準化口徑與 NAREIT 定義口徑之間會有差異？

As far as we know, that's fine, running through a NAREIT-defined FFO because of the nature of the income. It's being booked as interest income like all the other from a GAAP perspective.

就我們所知，因為該收入的性質，納入 NAREIT 定義的 FFO 是沒問題的。從 GAAP 的角度，它會像其他項目一樣以利息收入入帳。

Yes.

是的。

Yes, it's just another way of running through merchant profits so -- or if merchant building development profits through. Okay. So second question, Edison multifamily deal. Right near the state capital in Virginia, 6.8% cap. Can you explain the nuances there? There's -- we were just at NMHC, and we all -- we do understand cap rates on multifamily and 6.8% is a unique cap rate.

是的，這只是把商業利潤——或者說把商辦建造/開發利潤——納入的一種方式。好。那第二個問題，Edison 的多戶住宅交易。就在維吉尼亞州州府附近，6.8% 的資本化率。你能解釋一下其中的細節嗎？我們——我們剛在 NMHC，我們都——我們確實理解多戶住宅的 cap rate，而 6.8% 是一個很特別的 cap rate。

Yes. We're very pleased with that transaction, as you might expect. So I'm glad you asked the question, John, because, unfortunately, it's not a short answer. This is a project that we developed. The development of it started pre-IPO, we have an external partner that brought it to us and it's a tax credit deal and where we sold tax credits and the ownership of those tax credits needed to stay in place for a period of time that just expired at the end of last year. So there wasn't any opportunity to bring it into the fold. But as we were getting close to the ability to sell it, we approached our external partner about the opportunity of taking OP units. Protecting their cash flow and their taxes in return for a better cap rate. We were able to cut a deal with them. And they'll be receiving all their equity in OP units. And then we told our old partners who are still executives here that they had to live with the same deal that our external partners had agreed to. And so consequently, again, as the largest shareholder, will be increasing our stake in Armada Hoffler by taking more OP units when that transaction comes in. But -- and it just kind of shows the power of using your stock and particularly stock that's done well in order to purchase assets. And tax protection and cash flow means a lot more to these guys than getting a big, big paycheck and paying a lot in taxes. So that's why we were able to negotiate a very favorable cap rate.

是的。如你所料，我們對這筆交易非常滿意。所以我很高興你問這個問題，John，因為不幸的是，這不是一個簡短的答案。這是一個我們自行開發的專案。它的開發在 IPO 之前就開始了；我們有一個外部合作夥伴把它帶給我們，這是一個稅額抵免（tax credit）案，我們出售了稅額抵免，而這些稅額抵免的所有權需要在一段期間內維持不變，而該期間在去年年底剛到期。所以當時沒有任何機會把它納入我們的體系。但當我們接近可以出售它的時間點時，我們就跟外部合作夥伴談，是否有機會改以 OP 單位（OP units）來承接。以保障他們的現金流與稅務，作為交換，換取更好的資本化率。我們跟他們談成了一筆交易。他們將以 OP 單位的形式收到其全部股權。然後我們也告訴我們以前的合作夥伴——他們現在仍是這裡的高階主管——他們必須接受與外部合作夥伴同樣的條件。因此，作為最大股東，我們將在該交易完成時，透過承接更多 OP 單位來提高我們在 Armada Hoffler 的持股。但——這也某種程度上展現了運用自家股票、尤其是表現良好的股票來收購資產的力量。對這些人而言，稅務保護與現金流的重要性遠高於拿到一大筆薪酬然後繳很多稅。所以我們才能談到一個非常有利的資本化率。

And any near-term CapEx plan for that project?

那這個專案近期有任何資本支出（CapEx）計畫嗎？

No, there's nothing out of the ordinary. It's a historic rehab. We love the project, it's been full since day 1. And as you might expect, the upkeep is more than in a new build, but it's all in the numbers that we're forecasting. And John, that should help move the cap rate from 2015.

沒有，沒有任何不尋常的項目。這是一個歷史建築整修案。我們很喜歡這個專案，從第一天起就滿租。如你所料，維護成本會比新建案更高，但這些都已反映在我們的預測數字裡。而且 John，這應該有助於把 cap rate 從 2015 年那個水準往下推。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Haddad for any final comments.

各位女士先生，我們的問答環節到此結束。我把時間交還給 Haddad 先生作最後的結語。

All right. Thanks for -- I must apologize for the length of the call today. It's always a tough one when we get into guidance. We try and be as transparent as we can. And as complex as our model is, it takes a little while to go through it. So I appreciate everybody's patience. Thanks for listening and your interest in Armada Hoffler. Have a great day.

好的。謝謝——我必須為今天電話會議時間較長致歉。當我們進入財測指引時，總是比較棘手。我們會盡可能保持透明。而以我們的模型複雜度來說，講解需要花一點時間。所以感謝大家的耐心。謝謝收聽，也謝謝各位對 Armada Hoffler 的關注。祝各位有美好的一天。

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

謝謝。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。