AH Realty Trust, Inc (AHRT) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler Second Quarter 2023 Earnings Conference Call. (Operator Instructions) This call is being recorded on Thursday, the 3rd of August, 2023.

各位女士、先生，早安，歡迎參加 Armada Hoffler 2023 年第二季財報電話會議。（接線員指示）本通話將於 2023 年 8 月 3 日（星期四）錄音。

I would now like to turn the conference over to Chelsea Forrest.

現在我想將會議交給 Chelsea Forrest。

Good morning, and thank you for joining Armada Hoffler's second quarter 2023 earnings conference call and webcast. On the call this morning, in addition to myself is, Lou Haddad, CEO; Matthew Barnes-Smith, CFO; and Shawn Tibbetts, COO.

早安，感謝各位參加 Armada Hoffler 2023 年第二季財報電話會議與網路直播。今天早上的電話會議中，除我之外，還有執行長 Lou Haddad、財務長 Matthew Barnes-Smith，以及營運長 Shawn Tibbetts。

The press release announcing our second quarter earnings along with our supplemental package were distributed this morning. A replay of this call will be available shortly after the conclusion of the call through September 3, 2023. The numbers to access the replay are provided in the earnings press release. For those who listen to the rebroadcast of this presentation, we remind you that, the remarks made herein are as of today, August 3, 2023, and will not be updated subsequent to this initial earnings call.

本公司今早已發布公布第二季財報的新聞稿以及補充資料包。本通話的重播將於通話結束後不久提供，並可使用至 2023 年 9 月 3 日。取得重播的電話號碼已載於財報新聞稿中。對於收聽本簡報重播的聽眾，我們提醒您：本通話中的發言係截至今日（2023 年 8 月 3 日），在本次初次財報電話會議後將不再更新。

During this call, we may make forward-looking statements, including statements related to the future performance of our portfolio, our development pipeline, the impact of acquisitions and dispositions, our mezzanine program, our construction business, our liquidity position, our portfolio performance and financing activities as well as comments on our guidance and outlook. Listeners are cautioned that, any forward-looking statements are based upon management's beliefs, assumptions and expectations taking into account information that is currently available.

在本通話中，我們可能會作出前瞻性陳述，包括與我們投資組合未來表現、開發管線、收購與處分的影響、夾層融資計畫、營建業務、流動性狀況、投資組合表現與融資活動，以及對我們指引與展望的評論等相關陳述。提醒聽眾注意，任何前瞻性陳述均係基於管理層的信念、假設與預期，並考量目前可得資訊。

These beliefs, assumptions and expectations may change as a result of possible events or factors, not all of which are known and many which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations and we advise listeners to review the forward-looking statements disclosure in our press release that we distributed this morning and the risk factors disclosed in the documents we have filed with and furnished to the SEC.

這些信念、假設與預期可能因可能發生的事件或因素而改變，其中並非所有因素皆為已知，且多數難以預測並通常超出我們的控制範圍。這些風險與不確定性可能導致實際結果與我們目前的預期存在重大差異；我們建議聽眾查閱我們今早發布之新聞稿中的前瞻性陳述揭露，以及我們向美國證券交易委員會（SEC）提交與提供之文件中所揭露的風險因素。

We will also discuss certain non-GAAP financial measures, including but not limited to, FFO and normalized FFO. Definitions of these non-GAAP measures as well as reconciliations to the most comparable GAAP measures are included in the quarterly supplemental package, which is available on our website at armadahoffler.com.

我們也將討論若干非 GAAP 財務衡量指標，包括但不限於 FFO 與標準化 FFO。這些非 GAAP 指標的定義，以及與最可比 GAAP 指標的調節表，均收錄於季度補充資料包中，可於我們網站 armadahoffler.com 取得。

I'll now turn the call over to Lou.

現在我把電話交給 Lou。

Thanks, Chelsea. Good morning, everyone, and thank you for joining us.

謝謝你，Chelsea。各位早安，感謝各位加入我們。

Today, we reported earnings for the second quarter of $0.32 per share, in line with our expectations and consistent with our full year guidance. As you can see from our press release, the portfolio continues to deliver positive growth in same store sales and re-leasing spreads, while maintaining company-wide occupancy over 97%. We continue to prove that best-in-market properties yield impressive results in most any economic climate. Shawn and Matt will give you the details on the quarter as well as the current state of operations and financial metrics.

今天我們公布第二季每股盈餘為 0.32 美元，符合我們的預期，並與我們全年指引一致。從新聞稿可見，投資組合在同店銷售與續租價差方面持續呈現正成長，同時全公司平均出租率維持在 97% 以上。我們持續證明，市場中最具競爭力的資產在幾乎任何經濟環境下都能帶來亮眼成果。Shawn 與 Matt 將向各位說明本季細節，以及目前營運狀況與財務指標。

I'll give you an overview of our few longer term initiatives we intent to pursue over the next 18 to 24 months. For years, we have been describing the advantages of our business model, vertical integration of the development process, asset class diversification, mixed use environments and best-in-class properties are all important factors in our platform as well as our value proposition. This approach to real estate, 44 years in the making, has produced substantial growth over the last 10 years.

我將概述我們未來 18 至 24 個月打算推動的幾項較長期計畫。多年來，我們一直在說明我們商業模式的優勢：開發流程的垂直整合、資產類別多元化、複合式使用環境，以及同級最佳的資產，都是我們平台與價值主張的重要要素。這種不動產經營方式歷經 44 年打造，並在過去 10 年帶來可觀成長。

Since our IPO in 2013, we have increased our asset base over 5x, expanded our market cap nearly 4x, doubled our earnings per share, and perhaps most importantly to investors, outperformed the REIT Index on a total shareholder return basis over the same period. All this despite the challenges of pandemic and the current disfavour of commercial real estate sector, which has impacted property values, consequently reducing our multiple and undervaluing our equity. While this may be viewed as respectable performance by many, it's by no means satisfactory to us.

自 2013 年 IPO 以來，我們的資產規模成長超過 5 倍、市值擴大近 4 倍、每股盈餘翻倍；或許對投資人而言最重要的是，在同一期間以股東總報酬衡量，我們的表現優於 REIT 指數。即便面臨疫情挑戰以及目前市場對商用不動產產業的偏空情緒（已影響資產價值，進而壓低我們的估值倍數並低估我們的股權價值），我們仍達成上述成果。雖然許多人可能認為這是值得肯定的表現，但對我們而言仍遠非滿意。

Our goal remains to demonstrate the true work of superior assets, both property and human. And return the equity value to its previous highs and beyond, regardless of the macro environment. Over the next one to 2 years, in addition to continuing measurable growth in earnings and dividends, we intend to make strategic moves that should drive significant outperformance over our peers as well as reinforce the flexibility, resiliency and foundational strength of our diversified platform.

我們的目標仍是展現優質資產（不論是不動產資產或人才資產）的真正價值，並在不受總體環境影響的情況下，將股權價值恢復至先前高點並更上一層樓。未來 1 至 2 年，除持續推動可衡量的盈餘與股利成長外，我們也打算採取策略性行動，以期顯著優於同業，同時強化我們多元化平台的彈性、韌性與基礎實力。

Armada Hoffler has a well-established history of telling the market what we intend to accomplish, executing and reporting back the positive results. We expect similar performance going forward. We took an important step in this process last month when our Board authorized a limited stock buyback program. This initiative is predominantly meant to give us a headstart on retiring our preferred equity shares, which are callable next spring. It is our intent to eventually fully extinguish the entire series.

Armada Hoffler 一向有明確告知市場我們要完成什麼、確實執行並回報正面成果的良好紀錄。我們預期未來也將維持同樣表現。上個月，我們董事會核准一項有限度的庫藏股回購計畫，這是此流程中的重要一步。此舉主要是為了讓我們能提前開始回收（退還）我們的優先股權股份，該等股份將於明年春季起可被贖回。我們的意圖是最終完全消滅整個系列。

Around this time next year, we will complete all current construction projects at Harbor Point on the Baltimore Waterfront. T Rowe price will begin their move in process and the adjacent allied departments will start the lease up phase. Shortly thereafter, we intend to begin marketing some combination of our joint ventures and/or selected wholly owned assets within the development. Make no mistake, we believe strongly in the viability and growth prospects for all the uses at Harbor Point. In fact, we intend to continue developing there alongside our long-time partner BD Development Group.

約在明年此時，我們將完成巴爾的摩海濱 Harbor Point 的所有在建工程。T. Rowe Price 將開始進駐流程，鄰近的 Allied 部門也將開始招租（lease-up）階段。不久之後，我們打算開始行銷出售該開發案中部分合資項目和／或部分自有資產的組合。請不要誤會，我們對 Harbor Point 各項用途的可行性與成長前景深具信心。事實上，我們計畫與長期合作夥伴 BD Development Group 持續在該處進行開發。

That said, with 4 premier quality office buildings featuring many Fortune 500 companies on long-term leases and 700 luxury apartments, selective disposition of some of the trophy assets in the development will significantly reduce our capital allocation, thereby enabling us to expand in higher growth Southeast markets, mitigate concentration risk and further deleverage the balance sheet.

然而，該開發案擁有 4 棟頂級品質的辦公大樓（多家《財富》500 大企業簽有長期租約）以及 700 戶豪華公寓；選擇性處分其中部分指標性資產，將可大幅降低我們的資本配置需求，進而使我們得以在成長更快的美國東南部市場擴張、降低集中度風險，並進一步降低資產負債表槓桿。

By utilizing all the tools in our toolbox, construction capacity, preferred equity, mezzanine lending and season development partners, we expect to achieve significant portfolio expansion with minimal strain on the balance sheet, while continuing to release the value created by our development activities. Shawn will update you later in the call on new multifamily opportunities that we are executing.

透過運用我們工具箱中的所有工具——營建產能、優先股權、夾層放款以及資深開發合作夥伴——我們預期在對資產負債表造成最小壓力的情況下，實現顯著的投資組合擴張，同時持續釋放我們開發活動所創造的價值。Shawn 稍後也將在電話會議中向各位更新我們正在執行的新多戶住宅（multifamily）機會。

On a related note, although we don't anticipate exiting any assets at Town Center of Virginia Beach, we have decided against expanding the multifamily counts at the complex at this time. Instead, after we receive the adjacent Bed Bath & Beyond site back, we will proceed with re-tenanting and expanding the property with new retail tenants. This decision affords us a much greater return with significantly less capital commitment and further enhances the retail and entertainment options for our patrons. This also allows us to redirect additional funds for multifamily investment in higher growth areas. Shawn will comment on these details as well.

相關地，雖然我們不預期退出維吉尼亞海灘 Town Center 的任何資產，但我們已決定目前暫不擴增該綜合體的多戶住宅戶數。相反地，在我們收回鄰近的 Bed Bath & Beyond 場址後，我們將著手重新招商並以新的零售租戶擴充該物業。此決策可在顯著較少的資本承諾下，為我們帶來更高的報酬，並進一步提升顧客的零售與娛樂選擇。同時也讓我們能將更多資金重新導向至成長更快地區的多戶住宅投資。Shawn 也會就此細節進一步說明。

This ability to pivot our emphasis among asset classes and sub-markets is an advantage that has enhanced our profitability for over 4 decades. With the continued strength of the portfolio, robust fee income and the lease-up of new properties, our expectation is for continued growth in earnings and asset value next year. Additionally, we believe that the strategic moves that I've described today will meaningfully accelerate year-over-year increases in virtually all our financial results in 2025 and beyond.

這種能在資產類別與次級市場之間調整重點的能力，是我們四十多年來提升獲利能力的優勢之一。隨著投資組合持續強勁、費用收入穩健，以及新物業逐步完成招租，我們預期明年盈餘與資產價值將持續成長。此外，我們相信我今天所描述的策略性行動，將在 2025 年及之後，實質加速我們幾乎所有財務成果的年增幅。

Now I'll turn the call over to Shawn.

現在我把電話交給 Shawn。

Thank you, Lou. The teams throughout our organization remain highly focused on disciplined execution in all areas of our business. Armada Hoffler's approach to value creation is bolstered by our commitment to company value, which in turn drive our actions and focus on achieving our goals even in this tough economic environment.

謝謝你，Lou。我們組織各團隊仍高度專注於在業務各面向進行有紀律的執行。Armada Hoffler 的價值創造方式，建立在我們對公司價值的承諾之上，而這也驅動我們的行動與專注，即使在艱困的經濟環境中仍致力達成目標。

We are operating efficiently with continued high levels of occupancy, healthy re-leasing spread and a substantial third-party construction backlog. We believe that, best-in-class performance throughout the portfolio, safe and reliable construction services, combined with seamless execution of high-quality development projects, will continue to create sustained shareholder value for years to come.

我們在持續高出租率、健康的續租價差，以及可觀的第三方營建在手訂單（backlog）下，維持高效率營運。我們相信，投資組合全面的同級最佳表現、安全可靠的營建服務，加上高品質開發專案的無縫執行，將在未來多年持續為股東創造長期價值。

The supplemental package contains a recap of our operating highlights. I would like to call out a few of the noteworthy metrics that are contributing to our continued growth and sustained high occupancy across the portfolio. 2023 quarter 2 year-over-year same-store NOI was positive in all segments and was 4.8% on a GAAP basis and 2.9% on a cash basis. Multifamily was 4.3% on a GAAP basis and 3.6% on a cash basis. Office was 1.3% on a GAAP basis and 2% on a cash basis. Retail was 7.5% on a GAAP basis and 3.1% on a cash basis. 2023 quarter 2 year-over-year re-leasing spreads on the commercial portfolio were positive 8.9% on a GAAP basis and 7.3% on a cash basis.

補充資料包包含我們營運重點的回顧。我想特別指出幾項值得注意的指標，這些指標正推動我們持續成長，並使整體投資組合維持高出租率。2023 年第二季同店 NOI 年增率在所有部門皆為正：以 GAAP 基礎為 4.8%，以現金基礎為 2.9%。其中，多戶住宅以 GAAP 基礎為 4.3%，以現金基礎為 3.6%；辦公以 GAAP 基礎為 1.3%，以現金基礎為 2%；零售以 GAAP 基礎為 7.5%，以現金基礎為 3.1%。2023 年第二季商用投資組合的續租價差年增亦為正：以 GAAP 基礎為 8.9%，以現金基礎為 7.3%。

Our multifamily sector is growing consistently at mid-single-digits on par with our forecast for 2023. We are focused on optimising both revenue and expense management as we look to grow residential portfolio within our geographic footprint over time. The Retail segment is also experiencing sustained elevated levels of lease-up, at 98.2% across our nearly 4 million square feet. In terms of office performance, we remain well leased at 96.2% inclusive of The Interlock acquisition, which contained a small amount of vacancy.

我們的多戶住宅部門持續以中個位數的增長穩健成長，與我們對 2023 年的預測一致。隨著我們在既有地理版圖內逐步擴大住宅投資組合，我們專注於同時優化營收與費用管理。零售部門亦持續維持高水準的出租率，在我們近 400 萬平方英尺的物業中達到 98.2%。就辦公室表現而言，我們仍維持良好的出租狀況，包含收購 The Interlock 後的整體出租率為 96.2%，該收購案包含少量空置面積。

On that note, portion of our team has been relocated within near Armada Hoffler Tower near Town Center and KPMG has subsequently taken possession of their new space and we expect them to be in by the end of the year. This flight to quality has again increased the percentage of office space leased at Town Center, which currently sits at 99.4% of the nearly 800,000 square feet. As a result of the high occupancy and continued demand, we are discussing future office needs with our tenants. These ongoing discussions create alignment and also provide insight into opportunities that may exist to accommodate additional tenants looking to relocate into Town Center.

承接上述內容，我們團隊的一部分已遷入位於 Town Center 附近的 Armada Hoffler Tower，而 KPMG 隨後也已接收其新辦公空間，我們預期其將於年底前進駐。這波「向高品質遷移」再次提高了 Town Center 的辦公空間出租比例，目前在近 80 萬平方英尺的面積中，出租率達 99.4%。在高入住率與持續需求的帶動下，我們正與租戶討論其未來的辦公需求。這些持續的討論可促進彼此一致性，並提供洞見，協助我們把握可能存在的機會，以容納希望遷入 Town Center 的其他租戶。

Retail performance remains strong and we are capitalizing on the momentum. We have recently signed a long-term lease with LEGO for prime retail space at our Town Center of Virginia Beach. This is yet another example of a high credit tenant seeking out space in our flagship development. We are excited about this new-to-market retailer and the positive effect the LEGO following will have on traffic within our ecosystem.

零售表現依然強勁，我們正把握這股動能。我們近期已與 LEGO 簽署長期租約，承租位於維吉尼亞海灘 Town Center 的優質零售空間。這再次展現高信用等級租戶選擇我們旗艦開發案空間的趨勢。我們對這家首次進入本市場的零售商感到振奮，也看好 LEGO 粉絲效應將為我們的生態系帶來更高的人流。

The tenants on our watch list remain materially similar to last quarter. Our focus has been on the opportunistic next steps for our 2 Bed Bath & Beyond store locations. Conversations with new tenants are continuing for the Durham, North Carolina space. We expect a positive outcome and we will update you as soon as possible.

我們觀察名單上的租戶與上季相比並無重大變化。我們的重點放在針對兩處 Bed Bath & Beyond 店址的機會型後續步驟。針對北卡羅來納州達勒姆（Durham）的空間，我們與新租戶的洽談仍在持續。我們預期將有正面結果，並會在可行時盡快向各位更新。

In Virginia Beach, the decision is based on an opportunity cost equation with an emphasis on the best long-term value creation for the 6 acres. Ultimately, the outcome of our due diligence exercises points to a high-end, high-quality retail-focused redevelopment site. We have narrowed the list of potential tenants to a preferred short list of suitors. The program will likely involve modifications to include 1 or 2 major high credit retailers with a very limited amount of high-end small shops supplemented by a strategic out parcel user. We intend to continue our relationship with Regal. However, should the opportunity arise, we would look to redevelop Phase 2 as a supplement to the Bed Bath & Beyond site that provides for a natural flow of Town Center expansion to the East.

在維吉尼亞海灘，決策係基於機會成本的衡量，並著重於該 6 英畝土地的最佳長期價值創造。最終，我們的盡職調查結果指向一個高端、高品質、以零售為核心的重建基地。我們已將潛在租戶名單縮小至偏好的短名單。該方案可能需要調整，納入 1 至 2 家主要的高信用等級零售商，並僅配置極少量的高端小型店鋪，另搭配策略性的外圍地塊（out parcel）使用者。我們打算延續與 Regal 的合作關係。然而，若出現機會，我們將考慮重建第二期（Phase 2），作為 Bed Bath & Beyond 基地的補充，使 Town Center 向東擴張形成自然動線。

As you may recall, our initial redevelopment plans included potential for inclusion of multifamily units. We have determined that the capital earmarked for multifamily will be best invested outside of Town Center given that we already own the trophy assets in the sub-market and the retail opportunity set being negotiated will provide better returns. Our analysis is that multifamily investment outside of Town Center combined with the focus on a retail-driven program at the Bed Bath & Beyond site ultimately results in yielding the highest overall return on shareholder equity, the best use of the property, a more diverse geographic footprint in the Southeast and a greater contribution to NAV.

各位或許記得，我們最初的重建計畫包含納入多戶住宅單位的可能性。我們已判定，原本預留給多戶住宅的資本，若投資於 Town Center 以外將更為合適，因為我們在該次級市場已擁有指標性資產，而目前正在洽談的零售機會組合可帶來更佳報酬。我們的分析顯示：在 Town Center 以外進行多戶住宅投資，並在 Bed Bath & Beyond 基地聚焦於零售驅動的方案，最終可帶來最高的股東權益整體報酬、最佳的資產使用方式、更為多元的美國東南部地理布局，以及對淨資產價值（NAV）更大的貢獻。

As you can see our portfolio comprised of state-of-the-art properties and superior locations continues to operate consistently well throughout economic cycles, the complimentary property types and trophy assets in superior locations combined to outperform the competitive set. The T. Rowe Price Global Headquarters project at Harbor Point is continuing to take shape and is on track for turnover in the summer of 2024. The adjacent 312 units Allied Apartment Tower is also on plan for delivery in the third quarter of 2024.

如各位所見，我們由最先進物業與優越地段所構成的投資組合，在各種經濟循環中持續維持穩健營運；互補的資產類型與位於優越地段的指標性資產相結合，使我們得以優於同業競爭組合。Harbor Point 的 T. Rowe Price 全球總部專案持續成形，並按計畫於 2024 年夏季交付。相鄰的 Allied 公寓大樓（312 戶）亦按計畫於 2024 年第三季交付。

At Southern Post, in Roswell, Georgia, we are making significant progress toward the initial delivery early next year. Since our last earnings update, the retail space has moved to 86% leased or under LOI. As we noted last quarter, we are working through lease arrangements with a high credit tenant who is targeting approximately 40,000 feet of office, equating to 40% of the office space. Chandler Residences, the recently named multifamily component at Southern Post, is a high-quality offering in a market with a limited supply of leaseable residential units. Programming and marketing efforts for the project have been very well received and we expect considerable success and speed in the lease-up.

在喬治亞州羅斯威爾（Roswell）的 Southern Post，我們正朝向明年初的首批交付取得顯著進展。自上次財報更新以來，零售空間已達 86% 完成出租或已簽署意向書（LOI）。如同上季所提，我們正與一位高信用等級租戶協商租約安排，該租戶目標承租約 40,000 平方英尺的辦公空間，約占辦公面積的 40%。Southern Post 的多戶住宅組成部分近期命名為 Chandler Residences，屬於高品質產品，所在市場可出租住宅單位供給有限。該專案的規劃與行銷推動獲得非常正面的回饋，我們預期出租進度將相當成功且快速。

Additionally, I would like to elaborate on a few noteworthy strategic topics, some previously mentioned by Lou. Last quarter, we discussed strategic growth initiatives underpinned by both acquisition and development of high-quality well-located trophy real estate. As you know, we at Armada Hoffler create value for shareholders through leveraging both our construction and development expertise as well as our extensive partnership network to manufacture and acquire well-located trophy assets. Additionally, we are fortunate to be able to leverage those partnerships created along the way that provide access to high-quality assets on an off-market basis.

此外，我想進一步說明幾個值得關注的策略議題，其中部分先前已由 Lou 提及。上季我們討論了以收購與開發高品質、地段優越的指標性不動產為基礎的策略性成長計畫。如各位所知，Armada Hoffler 透過結合我們的營建與開發專業，以及廣泛的合作夥伴網絡，來打造並收購地段優越的指標性資產，為股東創造價值。此外，我們也很幸運能運用一路建立的合作關係，以場外（off-market）方式取得高品質資產的投資機會。

Last quarter, we focused on the acquisition approach, while transacting on The Interlock, demonstrating that our strategy continues to produce results. We are settling into the management of this trophy asset, while studying opportunities to create upside beyond the NOI acquired in the transaction. We look forward to updating you on our initiatives as they come to fruition.

上季我們聚焦於收購策略，並完成 The Interlock 的交易，證明我們的策略持續產生成果。我們正逐步進入該指標性資產的管理節奏，同時研究在交易所取得的 NOI 之外創造上行空間的機會。我們期待在相關計畫逐步落實時，向各位更新進展。

To continue the theme of sourcing high-quality real estate via existing relationships, one of our largest OP unit holders, affiliates of Venture Realty Group, presented us with a unique opportunity to invest in the development of a new 280-unit Class A multifamily apartment community, The Allure at Edinburgh. The transaction requires minimum upfront capital and provides us both a preferred return on our investment and the ability to acquire the asset upon completion and stabilization in a future OP unit transaction. Both the average and median household incomes in the zip code within Chesapeake, Virginia are the highest among all the markets in which we invest, including Atlanta and Charlotte.

延續透過既有關係取得高品質不動產的主軸，我們最大的 OP 單位持有人之一——Venture Realty Group 的關聯方——向我們提出一項獨特機會，投資開發一個全新的 280 戶 A 級多戶住宅公寓社區 The Allure at Edinburgh。該交易所需的前期資本最低，並同時提供我們投資的優先報酬（preferred return），以及在未來透過 OP 單位交易於完工並穩定後收購該資產的能力。維吉尼亞州切薩皮克（Chesapeake）該郵遞區號內的平均與中位數家庭收入，為我們投資的所有市場中最高，包含亞特蘭大與夏洛特。

Consistent with our overall investment thesis, we are excited about the potential to own what will be the best asset in a growing secondary market with strong fundamentals at an attractive going in basis and yield. We have sourced 2 additional high-quality multifamily projects that will fill our preferred equity and mezzanine platform allocation. Solis Kennesaw and Solis Peachtree Corners are both located in a sub-market outside of Atlanta. These developments will be executed by our trusted partners at Terwilliger Pappas. Together, these opportunities allow us to continue increasing exposure to the Greater Atlanta markets and may ultimately yield the opportunity to own either of the assets, thereby creating additional concentration in these high-growth markets.

與我們整體投資論點一致，我們對於有機會以具吸引力的進場基礎與收益率，在一個基本面強勁、成長中的次級市場持有未來最優質的資產感到振奮。我們另已取得 2 個額外的高品質多戶住宅專案，將填補我們優先股權（preferred equity）與夾層融資（mezzanine）平台的配置額度。Solis Kennesaw 與 Solis Peachtree Corners 均位於亞特蘭大以外的次級市場，並將由我們信賴的合作夥伴 Terwilliger Pappas 執行。綜合而言，這些機會使我們得以持續提高對大亞特蘭大市場的曝險，並可能最終帶來持有其中一項資產的機會，進而在這些高成長市場形成更高的集中度。

Finally, thank you to the talented colleagues at Armada Hoffler who are manufacturing and managing high-quality assets within our portfolio. We are performing well. However, as Lou previously stated, we are not satisfied with our equity value, and as a result, we will remain laser-focused on our mission of leading in the REIT space by consistently creating long-term value for our shareholders.

最後，感謝 Armada Hoffler 的優秀同仁在我們的投資組合中打造並管理高品質資產。我們的表現良好。然而，正如 Lou 先前所述，我們對自身的股權價值並不滿意，因此我們將持續高度聚焦於我們的使命：在 REIT 領域保持領先，並持續為股東創造長期價值。

I will now turn the call over to Matt.

接下來我把電話會議交給 Matt。

Good morning, and thank you, Shawn. Another compelling performance by our team continuing to deliver consistently strong results across all operating metrics. We have reported FFO of $0.35 per diluted share and normalized FFO of $0.32 per diluted share in line with guidance and slightly above analyst consensus. We maintained our guidance range accordingly at normalized FFO of $1.23 to $1.27 per diluted share.

各位早安，謝謝你，Shawn。我們團隊再次展現令人信服的表現，在所有營運指標上持續交出穩健且一致的成果。我們公布的每股稀釋後 FFO 為 0.35 美元，標準化每股稀釋後 FFO 為 0.32 美元，符合指引並略高於分析師一致預期。我們因此維持指引區間不變，標準化每股稀釋後 FFO 為 1.23 至 1.27 美元。

Our stabilized leverage metric remains in our target range at 5.5x. When our ancillary debt is included, leverage has risen to 7.1x, slightly elevated from last quarter. This metric will temporarily increase over the next few periods until the assets in our development pipeline start producing cash flow. Leverages anticipated to decrease back into our target range as EBITDA continues to grow.

我們的穩定槓桿指標仍維持在目標區間內，為 5.5 倍。若納入我們的附屬債務（ancillary debt），槓桿上升至 7.1 倍，較上季略為偏高。由於開發管線中的資產尚未開始產生現金流，該指標在接下來幾個期間將暫時上升。隨著 EBITDA 持續成長，預期槓桿將下降回到我們的目標區間。

Our debt service coverage ratio and fixed charge coverage ratio was 2.7x and 2.3x respectively, demonstrating our team's ability to manage and execute our balance sheet strategy in the adverse market conditions we are all experiencing. Our liquidity position continues to be strong at roughly $130 million, more than ample to cover the 2023 cash requirements for our remaining development pipeline and the preferred equity investments that Shawn mentioned earlier. This combined with our well-structured debt maturity ladder means that we can continue to grow earnings, while supporting the team in achieving our growth objectives.

我們的債務償付覆蓋率（debt service coverage ratio）與固定費用覆蓋率（fixed charge coverage ratio）分別為 2.7 倍與 2.3 倍，顯示在我們共同面臨的不利市場環境下，團隊仍具備管理並落實資產負債表策略的能力。我們的流動性部位仍然強勁，約為 1.30 億美元，足以覆蓋 2023 年剩餘開發管線以及 Shawn 先前提及的優先股權投資所需現金。再加上我們結構良好的債務到期梯（debt maturity ladder），意味著我們能在支持團隊達成成長目標的同時，持續提升獲利。

For reference, as stated last quarter, we have no debt maturities in 2023 and we expect the small amount of debt maturities in 2024 and 2025 to be paid off at maturity, adding these previously secured assets to our unencumbered borrowing base. As interest rates continue to fluctuate, we will monitor the environment to ensure we either convert the variable rate debt to long-term fixed rate debt in the private placement markets or layer in new hedge positions when our current set of positions mature.

供參考，如同我們在上一季所述，我們在 2023 年沒有任何到期債務，且我們預期 2024 年與 2025 年少量到期債務將於到期時償還，並將這些先前已作擔保的資產納入我們的無擔保借款基礎。隨著利率持續波動，我們將監測環境，以確保我們要麼在私募市場將浮動利率債務轉換為長期固定利率債務，要麼在我們目前這組部位到期時，疊加建立新的避險部位。

Lou discussed our growth strategy earlier on the call and we continue to strengthen our balance sheet to support these efforts. In June, we started the process of increasing the capacity of our revolving credit facility, looking to add $100 million through the accordion feature. We're excited to report that we have had over 75% of the funds committed to date. In addition to our established lending group, we are adding Barclays Bank as a new lending relationship.

Lou 先前在電話會議中談到我們的成長策略，而我們也持續強化資產負債表以支持這些努力。6 月，我們啟動提高循環信用額度（revolving credit facility）容量的流程，計畫透過增額條款（accordion feature）增加 1 億美元。我們很高興報告，截至目前已有超過 75% 的資金承諾到位。除了既有的貸款銀行團之外，我們也新增巴克萊銀行（Barclays Bank）作為新的授信往來銀行。

Attracting top talent, whether that be internal colleagues on the team or external support from our partners, is key to driving success. Adding this full-service financial institution clearly demonstrates our capacity to grow and execute the strategy Lou described. As we look ahead over the next 18 months, the funds from plan dispositions coupled with our expected capital market activities are anticipated to be split between growth in the Southeast and deleveraging our balance sheet.

吸引頂尖人才——無論是團隊內部同仁，或是來自合作夥伴的外部支援——都是推動成功的關鍵。新增這家全方位金融機構，清楚展現我們具備成長並執行 Lou 所描述策略的能力。展望未來 18 個月，計畫性處分（plan dispositions）所得資金，加上我們預期的資本市場活動，預計將分配於東南部的成長投資與降低資產負債表槓桿（deleveraging）之間。

Another item of note this quarter was attracting an additional partner to our unsecured term loan used to fund The Interlock acquisition. This additional $20 million allows us to pay down the capital that we use from our line of credit at closing. As you will recall, we swapped the whole $100 million at an all-in fixed rate of 4.7%, which is very competitive in today's environment.

本季另一項值得注意的事項，是我們為用於資助 The Interlock 收購案的無擔保定期貸款（unsecured term loan）新增了一位合作夥伴。這額外的 2,000 萬美元使我們得以在交割時償還我們從信用額度動用的資金。如各位所記得，我們將整筆 1 億美元以全包固定利率（all-in fixed rate）4.7% 進行利率交換（swap），在當前環境下相當具競爭力。

Continuing the theme of our derivative program, in early July, we made 2 transactions that limited the exposure of interest rates remaining higher for a longer period than was initially anticipated. Both transactions involved selling our corridor positions and using the proceeds to buy down the rate on the swaps to 3.4%. The combined notional $250 million is the same notional amount as the initial corridors and will have the same maturity schedule. Whilst these derivative transactions do not have a material effect in 2023, we anticipate a lower cost of debt for 2024 as a result of these transactions. Some of our derivatives mature in early 2024, and we will either convert the variable rate debt to long-term fixed rate debt in the private placement markets or layer in new hedged positions.

延續我們衍生性商品計畫的主題，7 月初我們進行了兩筆交易，以限制利率維持在較高水準且時間長於原先預期的曝險。兩筆交易皆涉及賣出我們的利率走廊（corridor）部位，並以所得款項將交換合約（swaps）的利率下調至 3.4%。合計名目本金（combined notional）2.5 億美元與原先走廊的名目本金相同，且到期時程也相同。雖然這些衍生性商品交易在 2023 年不會造成重大影響，但我們預期因這些交易，2024 年的債務成本將更低。我們部分衍生性商品將於 2024 年初到期，屆時我們將在私募市場把浮動利率債務轉換為長期固定利率債務，或疊加建立新的避險部位。

I will now pass the call back over to the operator for the questions and answers session.

我現在把電話交回給接線員，進行問答環節。

(Operator Instructions) Your first question comes from the line of Rob Stevenson from Janney.

（接線員指示）您的第一個問題來自 Janney 的 Rob Stevenson。

Lou, I know you said you aren't going to be moving forward with another apartment development at Town Center right now, but you have call it rough numbers, 800,000 square feet of office at Town Center that's basically fully occupied. Is there incremental demand there for another tower there? And how are you thinking about office at Town Center today?

Lou，我知道你說目前不會在 Town Center 推進另一個公寓開發案，但你們在 Town Center 大概有 80 萬平方英尺的辦公面積，基本上已接近滿租。那裡是否還有新增需求、再蓋一棟大樓？以及你們現在如何看待 Town Center 的辦公市場？

Yes, there continues to be strong desire for more office space here at Town Center. We are actually looking to shoehorn in a couple more tenants in the remaining space. Hopefully we can get some space back from a couple of folks that might be downsizing. At this point in time, we are not inclined to launch a new tower that would take a significant anchor, at a much higher rent than I think the market's willing to bear at this point. So we are going to continue to sit here within and raise rents at sustained level with full building.

是的，Town Center 這裡對更多辦公空間的需求仍然很強。我們其實正嘗試在剩餘空間中再塞進幾個租戶。希望我們能從幾位可能縮編的租戶那裡收回一些空間。就目前而言，我們不傾向啟動一棟需要大型主力租戶（anchor）的新大樓，且租金必須高出許多，我認為以目前市場可承受的水準來看並不合適。因此，我們會繼續維持現狀，在大樓滿租的情況下，將租金提高到可持續的水準。

Okay. That's helpful. And then, Shawn, any known move-outs in the office or retail portfolio of consequence at this point that's popped up?

好的，這很有幫助。接著 Shawn，目前在辦公或零售投資組合中，有沒有任何已知、可能造成影響的退租情況浮現？

There's very little to speak of. I was actually looking at this yesterday, Rob, that we have got a couple of folks were negotiating on a renewal basis. But no, we don't expect any of consequence to move-out.

幾乎沒有什麼可說的。我昨天其實也在看這個，Rob，我們有幾位租戶正在就續約進行協商。但沒有，我們不預期會有任何具影響性的退租。

All right. And then last one for me. Lou, you talked on the prepared comments about taking out the 6.75 preferreds. I understand doing that when debt was, call it, 4% something, but in the current environment and given that it never has to be repaid and is it treated as at least quasi equity? What's the thought process here, especially with these interest rate caps burning off next year in the current interest rate environment?

好。那我最後一個問題。Lou，你在事先準備的發言中提到要買回（take out）6.75% 的優先股。我理解在債務成本大概 4% 多的時候這樣做，但在目前環境下，且優先股永遠不必償還、並且至少被視為類股權（quasi equity），這裡的思考邏輯是什麼？尤其是在目前利率環境下，這些利率上限（interest rate caps）明年到期失效的情況下？

Well, again, Rob, we'll have to look to see what next spring brings in terms of rates and whether that still make sense. Currently, with the preferred trading at a discount, we'd actually be purchasing back at basically an 8% rate. So that was the reason for the authorization of the buyback. Whatever we can get at a discount, we are going to take. And then we will see what the market gives us next May when we could get some more.

嗯，再次強調，Rob，我們得看明年春天利率的走勢，以及那樣做是否仍然合理。目前因為優先股以折價交易，我們實際上是以大約 8% 的報酬率買回。這就是我們授權回購的原因。只要能以折價買到的部分，我們就會買。然後我們會看看明年 5 月市場會給我們什麼條件，屆時我們可能再買一些。

Your next question comes from the line of Wes Golladay from Baird.

您的下一個問題來自 Baird 的 Wes Golladay。

I want to go back to the Virginia Beach Bed Bath location, I think you mentioned you might do some high-end retail. Just wondering what kind of halo effect you may get? Are you looking at bringing in maybe a Tesla, an Apple, and just kind of build up the whole area?

我想回到 Virginia Beach 的 Bed Bath 那個據點，我記得你提到可能會做一些高端零售。想請教你們可能會得到什麼樣的光環效應（halo effect）？你們是否考慮引進像 Tesla、Apple 之類的品牌，來帶動整個區域？

There are some very prominent tenants that are eyeing that site. It remains to be seen what we'll actually transact on. Remember, we've got an entire ecosystem, Wes. And what we are looking for is things that will add to the mix as opposed to more of the same. And so there is a couple of unique tenants that may be better fits. But hopefully, by the end of the year, we'll be able to make an announcement or 2 on what's coming. But it's very exciting here for Town Center.

有一些非常知名的租戶正在關注那個地點。最終我們會實際成交什麼，還有待觀察。Wes，請記得我們有一整套生態系。我們在尋找的是能夠豐富組合的業態，而不是更多同質性的東西。因此，有幾個獨特的租戶可能更適合。不過希望在年底前，我們能就即將進駐的內容發布一到兩項公告。對 Town Center 來說這非常令人振奮。

Okay. And then the multifamily starts at the nation, I've been somewhat resilient and just kind of curious what you are seeing on the ground. You talked about a lot of the developers. You provide a lot of financing. Do you get the sense that those are going to start to fall off pretty dramatically?

好的。接著，多戶住宅（multifamily）的開工在全國範圍內似乎仍相當有韌性，我有點好奇你們在第一線看到的情況。你提到很多開發商，你們也提供不少融資。你是否覺得這些開工量接下來會開始相當明顯地下滑？

Again, from a macro level, perhaps from a market-by-market level, we are in the highest growth markets that people continue to migrate to. And so the developers we are dealing with predominantly in Charlotte, Raleigh, Atlanta, Charleston are still seeing unprecedented growth. At some point, you would imagine that that would change. But we continue to read the headlines about being 5 million housing units short in particular in the markets that I was talking about. So for now, it appears to still be office. And as you know, cap rates widened a bit on multifamily, but not so much to dissuade people from executing on top quality sites.

同樣地，從總體層面來看，或從各市場層面來看，我們所在的是人們持續移入的最高成長市場。因此，我們主要往來的開發商——在 Charlotte、Raleigh、Atlanta、Charleston——仍看到前所未有的成長。在某個時間點，你會想像這會改變。但我們仍持續看到新聞標題指出住房短缺 500 萬戶，尤其是在我剛提到的那些市場。所以目前看起來仍然是……（原文如此）而且如你所知，多戶住宅的資本化率（cap rates）確實擴大了一些，但幅度不足以阻止人們在頂級地段上繼續執行開發。

Got it. And then maybe just one more big picture question for the portfolio. You're going to -- you kind of mentioned moving more to the Southeast is maybe taking down leverage a little bit. How does this look maybe 3 years from now? Is it going to be a dramatic shift or is it just going to be at the margin maybe 5% or 10% geographic allocation change and then leverage maybe down a half a turn or a turn? And how should we think over a multi-year view?

了解。那再一個更宏觀的投資組合問題。你們將——你們有提到更往東南部移動，可能也會稍微降低槓桿。三年後大概會是什麼樣子？會是很劇烈的轉移，還是只是邊際上的變化，例如地理配置調整 5% 或 10%，槓桿下降半圈或一圈？從多年期的角度我們應該如何思考？

Yes, I'll take the last part of that first. I'd look for leverage to go down a between a half and a full turn. Basically, what we want to do is move the portfolio further south on an incremental basis. We love the properties that we own in Baltimore, but we want to redeploy some of that capital down south. And so, yes, you're probably looking at a 10% move, maybe as much as 20%.

是的，我先回答你最後那部分。我預期槓桿會下降半圈到一圈之間。基本上，我們想做的是以漸進方式把投資組合往更南邊移動。我們很喜歡我們在 Baltimore 擁有的資產，但我們希望把其中一部分資本重新部署到南方。因此，是的，你大概會看到 10% 的移動，甚至可能高達 20%。

Your next question comes from the line of Peter Abramowitz from Jefferies.

您的下一個問題來自 Jefferies 的 Peter Abramowitz。

You mentioned a tenant that is interested in about 40% of the office space at Southern Post. Just wanted to ask about overall demand for the rest of that space, potentially kind of what you're seeing on the ground there? How many prospects you have on sort of the overall office component there?

您提到有一位租戶對 Southern Post 約 40% 的辦公空間感興趣。我想請教一下其餘空間的整體需求情況，您在當地第一線看到的狀況大概如何？就那裡整體辦公部分而言，目前大概有多少潛在客戶？

Yes, it's a pretty healthy prospect list. And now that the buildings are at a point where they can start to be toured, we're seeing a lot of activity. We've got another lease for about 7,000 square feet. So -- and then, as you know, the office -- I'm sorry, the retail is almost completely spoken for at this point. We're seeing good activity, Peter. It's a small amount of office and a very hot sub-market with limited opportunities for any kind of space. So we're very excited about what Southern Post is going to do in terms of earnings in 2024.

是的，潛在客戶名單相當健康。而且現在建物已經到了可以開始帶看參觀的階段，我們看到很多活動。我們另外還有一份約 7,000 平方英尺的租約。所以——然後，如您所知，辦公——抱歉，零售部分目前幾乎都已經被預訂完了。我們看到很好的動能，Peter。這裡的辦公量不大，但所在的次級市場非常火熱，可供選擇的空間機會有限。因此我們對 Southern Post 在 2024 年的獲利表現非常期待。

Okay. And then more a question on kind of the macro here. I guess, since your last call, the possibility of kind of a soft landing and a quicker recovery has become the prevailing narrative. Any sense of how tenants are thinking in terms of their behavior on the office or retail side? Are you noticing any changes and them feeling more optimistic and more willing to take on more space? I guess, any impact you're seeing in terms of their decision making?

好的。接著是比較偏宏觀的問題。我想，自從你們上次電話會議以來，「軟著陸」以及更快復甦的可能性已成為主流敘事。你們是否感覺租戶在辦公或零售端的行為想法有任何變化？你們是否注意到他們更樂觀、也更願意承租更多空間？也就是說，你們在他們的決策上看到任何影響嗎？

I haven't seen a whole lot of difference. In terms of retail, the sales have been off the charts. I don't want to generalize too much, but I'd say, the predominant amount of tenants in our facilities have well surpassed 2019 levels in terms of sales. And I think the largest issue that that is facing them is staff. Everybody's still hunting for staff.

我沒有看到太大的差異。就零售而言，銷售表現非常亮眼。我不想過度概括，但我會說，我們物業中的大多數租戶在銷售額方面都已遠遠超過 2019 年的水準。我認為他們面臨的最大問題是人力。大家仍在找員工。

On the office side, as you might expect, a lot depends on what business you're in. We're heavily weighted to architecture and engineering as well as financial services, and those folks all seem to be pretty bullish. You remember earlier this year, we re-upped 250,000 square feet with Morgan Stanley on it for 12 more years at Baltimore. We continue to see T. Rowe Price expanding into all of the space that they thought would be for additional growth with their new layouts. So it seems folks are pretty optimistic and we are right with them.

在辦公端，如您所預期，很大程度取決於您所處的產業。我們的租戶結構在建築與工程，以及金融服務方面占比較高，而這些客戶看起來都相當看多。您還記得今年稍早，我們在巴爾的摩與 Morgan Stanley 續租了 250,000 平方英尺，並再延長 12 年。我們也持續看到 T. Rowe Price 依照他們新式配置，擴張進入原本預留作為額外成長的所有空間。看起來大家都相當樂觀，我們也同樣如此。

It's interesting, in our prior lives, as private real estate developers, we love this kind of environment with unemployment at all-time low. Since we became a REIT, it appears that you are supposed to pray for a recession so that rates will go down. Unfortunately, we are not getting that message or I guess I should say fortunately. We are in full growth mode. Interest rates in our minds are normalized now to where they have been historically through most of our career. And we want the economy to keep chugging along and we are going to keep expanding.

很有意思的是，在我們過去作為私人不動產開發商的時候，我們很喜歡這種失業率處於歷史低點的環境。自從我們成為 REIT 之後，似乎大家覺得你應該祈禱出現衰退，這樣利率才會下降。不過我們並沒有收到那樣的訊息，或者我應該說，幸好沒有。我們正處於全面成長模式。在我們看來，利率現在已經正常化，回到我們職涯大部分時間的歷史水準。我們希望經濟持續穩健運轉，而我們也會持續擴張。

Sure. And then one last one for me, kind of big picture here. So obviously, you have had a lot of success at Town Center and your kind of close to reaching critical mass at Harbor Point. As you think about the future, do you see opportunities to do sort of development on that scale? Maybe not at the Town Center scale, but Harbor Point where you are kind of creating or overhauling an entire sub-market. Do you see the opportunity to do that in other places? And is that something you want to do or is it kind of more a case of blocking and tackling on just the one-off things you see in the portfolio in your markets as you are doing with the opportunities right now?

當然。最後一個問題，從大方向來看。顯然你們在 Town Center 取得了很大成功，而在 Harbor Point 也接近達到臨界規模。展望未來，您是否看到有機會進行同等規模的開發？也許不一定像 Town Center 那麼大，但像 Harbor Point 那樣，等於是在打造或翻新整個次級市場。您是否在其他地方也看到這樣的機會？這是你們想做的方向嗎？還是說，更像是持續把重點放在你們市場中、投資組合裡看到的單點機會（one-off），就像你們目前正在做的那樣？

Well, it's an interesting question. Obviously, we would love to do more mega development in a growing sub-market and in a location. Those opportunities are few and far between. We will always have our eyes out for them. I think more naturally, what you are going to see is, the kind of thing that we are doing in Southern Post. In these satellite cities around the major metropolitan -- again, the Charlotte, Raleigh, Atlanta, the satellite cities are presenting a lot of opportunities for mixed use developments in revitalizing older downtowns where people are -- where the population is growing pretty significantly. So I think you will see more Town Center-ish type development, but it's going to be on a smaller basis in selected cities.

嗯，這是個有趣的問題。顯然，我們很希望在成長中的次級市場、且地點合適的地方，做更多大型開發。不過這類機會非常稀少。我們會一直留意。我認為更自然、您更可能看到的是我們在 Southern Post 正在做的那種模式。在主要都會區周邊的衛星城市——再說一次，像夏洛特、羅利、亞特蘭大——這些衛星城市在活化較老舊的市中心、並進行複合式開發方面，提供了很多機會，因為人口正在相當顯著地成長。所以我想您會看到更多類似 Town Center 的開發，但會以較小規模、在特定城市中進行。

Your next question comes from the line of Chris Sakai from Singular Research.

下一個問題來自 Singular Research 的 Chris Sakai。

I had a question on office occupancy. It looks like it ticked down a percent this quarter. I wanted to get your idea of what were the drivers there? And how do you guys see occupancy rates in your guidance for 2023?

我想問一下辦公室出租率。看起來本季下降了 1 個百分點。我想了解造成這個變化的驅動因素是什麼？以及你們在 2023 年的指引中，如何看待出租率走勢？

Sure. I'm going to let Shawn answer that specifically, but I think there is only one factor that's contributed there.

好的。我會讓 Shawn 具體回答，但我認為造成這個情況的因素只有一個。

Yes. We feel good about the office occupancy, actually we feel great about it. As I mentioned in the comments, when we acquired The Interlock last quarter, there was some vacancy, some upside vacancy that came along with it, which obviously added to the denominator on our total square footage. So we have been rather consistent. And if you look at the renewals and the re-leasing, we have done well. There just hasn't been much activity because there hasn't been much change. So for us, we feel good about that. And again, we have got upside to lease-up between 27,000 and 30,000 feet down in Atlanta and we're active in that space. So again, that will just add to the overall income.

是的。其實我們對辦公出租率感覺很好，甚至可以說非常好。如我在評論中提到的，我們上季收購 The Interlock 時，隨之帶來了一些空置，也就是一些可提升的空置面積，這顯然增加了我們總可出租面積的分母。因此整體而言我們相當一致。如果您看續租與重新出租，我們表現不錯。只是因為變化不大，所以活動量也不多。對我們來說，我們對此感覺良好。而且我們在亞特蘭大那邊還有 27,000 到 30,000 平方英尺的可出租提升空間，我們也正在積極推進。因此，這將會進一步增加整體收入。

Chris, I think if you took Interlock out of the equation, you'd be right back to that 98% on the office. So again, that was pretty much the entirety of the change.

Chris，我想如果把 Interlock 的影響排除，你就會回到辦公 98% 的水準。所以，再次強調，那幾乎就是變動的全部原因。

And then it looks like interest income in your guidance has picked up about 2 million or so from last quarter. What's driving that increase?

另外，看起來你們指引中的利息收入較上季增加了約 200 萬美元左右。是什麼在推動這個增幅？

Chris, this is Matt. The increase of that is the 3 preferred equity deals that Shawn mentioned in his remarks that we close 1 of them in quarter and then the other 2 subsequent to quarter end in early July.

Chris，我是 Matt。這個增加來自 Shawn 在發言中提到的 3 筆優先股權（preferred equity）交易：其中 1 筆在本季完成交割，另外 2 筆在季末後、7 月初完成。

There are no further questions at this time. Please continue.

目前沒有進一步的問題。請繼續。

Thanks very much. I appreciate your attention this morning. And stay tuned for more announcements in a not too distant future. Thanks very much. Take care.

非常感謝。我很感謝各位今天早上的關注。也請持續關注，我們在不久的將來會有更多公告。非常感謝。保重。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

各位女士先生，今天的電話會議到此結束。感謝各位參與。您現在可以掛線。