AH Realty Trust, Inc (AHRT) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler First Quarter 2024 earnings conference call. At this time, all lines are in a listen only mode. (Operator Instructions) This call is being recorded on Thursday, May 9, 2024. I would now like to turn the conference over to Chelsea Forrest, Director of Corporate Communications, and Investor Relations. Please go ahead.

各位女士、先生，早安，歡迎參加 Armada Hoffler 2024 年第一季財報電話會議。目前所有線路皆為僅收聽模式。(接線員指示) 本通話於 2024 年 5 月 9 日（星期四）錄音。現在我想將會議交給企業傳播與投資人關係總監 Chelsea Forrest。請開始。

Good morning and thank you for joining Armada Hoffler First Quarter 2024 earnings conference call webcast. On the call this morning, in addition to myself is Lou Haddad, CEO; Matthew Barnes Smith, CFO and Shawn Tibbetts, President and COO. The press release announcing our first quarter earnings, along with our supplemental package, were distributed this morning.

早安，感謝您收看 Armada Hoffler 2024 年第一季財報電話會議網路直播。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，以及總裁兼營運長 Shawn Tibbetts。我們今早已發布第一季財報新聞稿及補充資料包。

A replay of this call will be available shortly after the conclusion of the call through June 8, 2024. 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, May 9 , 2024, and will not be updated subsequent to the initial earnings call.

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 2024 年 6 月 8 日。重播的撥入號碼已載於財報新聞稿。對於收聽本簡報重播的聽眾，我們提醒您，本次發言係截至今日（2024 年 5 月 9 日），且在首次財報電話會議後不會再更新。

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 our 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.

在本次電話會議中，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、開發案管線、收購與處分的影響、夾層融資計畫、營造業務、流動性狀況、投資組合表現與融資活動相關的陳述，以及對我們的指引與展望的評論。

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. These beliefs, assumptions and expectations may change as a result of possible events or factors, not all of which are known and many of which are difficult to predict and generally beyond our control.

聽眾請注意，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。這些信念、假設與預期可能因潛在事件或因素而改變，其中並非全部為我們所知，且多數難以預測並通常超出我們的控制範圍。

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 that we distributed this morning and the risk factors disclosed in documents that we have filed with or furnished to the SEC.

上述風險與不確定性可能導致實際結果與我們目前預期存在重大差異；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）提交或提供之文件中揭露的風險因素。

We will also discuss certain non-GAAP financial metrics, 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. I'll now turn the call over to Lou.

我們也將討論若干非 GAAP 財務指標，包括但不限於 FFO 與標準化 FFO。這些非 GAAP 指標的定義，以及與最可比較 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。現在我把電話交給 Lou。

Thanks, Chelsea. Good morning and thank you for joining us today. As you can see from our earnings release, it was another strong quarter here at Armada Hoffler. We continue to see our portfolio produced robust operating metrics. This combined with new properties coming online gives us confidence in our earnings guidance as our operational success offsets the headwinds from higher interest rates. Before Shawn and Matt give you the details on the quarter and projections for the rest of the year.

謝謝你，Chelsea。早安，感謝各位今天加入我們。如各位從我們的財報新聞稿所見，Armada Hoffler 本季再度繳出強勁表現。我們持續看到投資組合展現穩健的營運指標。再加上新物件陸續投入營運，使我們對盈餘指引更具信心，因為營運成果可抵銷利率上升帶來的逆風。在 Shawn 與 Matt 提供本季細節及今年其餘期間的預測之前。

I'll take a minute to reiterate our long-standing strategy with regard to capital allocation. As most of you know, management is the Company's largest active equity holder with a 12% stake. This alignment with external investors gives us a different perspective than that of most risk management teams and creates a strong aversion to dilution.

我先花一點時間重申我們長期以來在資本配置方面的策略。如各位多數人所知，管理層是公司最大的活躍股權持有人，持股 12%。這種與外部投資人一致的利益，使我們的觀點不同於多數風險管理團隊，並對稀釋具有強烈的排斥。

While portfolio growth is an important goal over the long term and capital market activity is an important component of that growth. You've seen us recycle numerous assets at prices well above the stock market's implied valuation. This is the most efficient way to raise capital when Armada Hoffler common equity trades at an unacceptable discount.

雖然從長期來看，投資組合成長是重要目標，而資本市場活動也是該成長的重要組成。各位也看到我們以遠高於股市隱含估值的價格回收並再配置多項資產。當 Armada Hoffler 普通股以不可接受的折價交易時，這是最有效率的籌資方式。

The current environment is just such a circumstance with as many as five new properties coming online over the next 12 months, any necessary equity capital will be primarily raised by selling a couple of assets with significant embedded profits. We expect these transactions to produce a substantial amount of cash and to be relatively neutral to earnings.

目前的環境正是如此；在未來 12 個月內最多可能有五個新物件投入營運，任何必要的股權資金將主要透過出售一兩項具有可觀隱含獲利的資產來籌措。我們預期這些交易將帶來可觀現金，且對盈餘的影響大致中性。

We recognize that leverage will remain elevated through the stabilization of the new properties, but with growing portfolio, NOI. and trophy quality assets, we are comfortable at these levels. We are confident about the quality of the developments, our initial underwriting, and the extensive expertise we have in market selection.

我們了解在新物件穩定化之前，槓桿水準仍將偏高，但在投資組合 NOI 成長及具指標性的優質資產支撐下，我們對目前水準感到安心。我們對開發案品質、初始承作評估（underwriting），以及我們在市場選擇方面的深厚專業充滿信心。

I'll now turn the call over to Matt to highlight a couple of quarterly metrics before Shawn for the business update.

接下來我把電話交給 Matt，先重點說明幾項季度指標，之後再由 Shawn 進行業務更新。

Good morning, and thank you, Louis. Starting with earnings for the first quarter of 2024, we reported FFO of $0.4 per diluted share and normalized FFO of $0.33 per diluted share, representing a 10% increase over the same period last year. Affo per diluted share increased 17% year over year to $0.27 and property NOI for the first quarter increased 9.3% over the same period last year due to a combination of both same-store and acquisition based growth.

早安，謝謝你，Louis。先從 2024 年第一季盈餘開始，我們每股稀釋後 FFO 為 0.4 美元，每股稀釋後標準化 FFO 為 0.33 美元，較去年同期成長 10%。每股稀釋後 AFFO 年增 17% 至 0.27 美元；第一季物業 NOI 較去年同期成長 9.3%，主要來自同店成長與收購帶動的成長共同作用。

These year-over-year increases demonstrates our ability to drive consistent earnings growth, which supports a growing and well-covered dividend with a payout ratio of 75% of AFFO. I'll provide more details on performance as it relates to our guidance expectations later in my remarks.

這些年增幅度展現我們推動穩定盈餘成長的能力，並支持股利持續成長且覆蓋良好；以 AFFO 計算的配息率為 75%。在我後續發言中，將就與指引預期相關的表現提供更多細節。

Our balance sheet metrics remain consistent with last quarter as we deploy the concluding tranches of our financial commitments on our Harbor Point development and real estate financing projects stabilized portfolio debt to stabilized portfolio EBITDA is at 6.6 times with our debt service coverage ratio reporting 1.7 times. Our weighted average cost of debt remains fixed just above 4% until a portion of our derivatives mature in October of 2025.

在我們投入 Harbor Point 開發案及不動產融資專案的最後幾筆承諾資金之際，我們的資產負債表指標與上季一致；穩定化投資組合負債對穩定化投資組合 EBITDA 為 6.6 倍，債務償付覆蓋率為 1.7 倍。我們的加權平均債務成本在 2025 年 10 月部分衍生性商品到期前，仍維持固定在略高於 4% 的水準。

As mentioned on previous earnings calls and earlier by Lou, our leverage will remain elevated until the current development pipeline matures. Our total debt to enterprise value today is about 54%, and we expect to eventually bring this into the 40% range we have a corresponding debt service coverage ratio in the 2.2 to 2.5 times range.

如先前財報電話會議所提及，且 Lou 先前也提到，在目前開發案管線成熟之前，我們的槓桿將維持在較高水準。目前我們的總負債對企業價值約為 54%，我們預期最終將其降至約 40% 的區間，並使相對應的債務償付覆蓋率達到 2.2 至 2.5 倍的區間。

With respect to our financial performance in comparison to guidance, I'll walk through each category and our guidance table on page 4 of the supplemental financial package. Separately for the quarter, property NOI reported approximately 580 k better than expected. Strong commercial retenanting throughout the year, coupled with one-time multifamily expense savings will add an additional millions of NOI above the previously stated midpoint of the property NOI range.

就我們相對於指引的財務表現而言，我將逐項說明，並參考補充財務資料包第 4 頁的指引表。就本季而言，物業 NOI 約較預期高出 58 萬美元。全年強勁的商用物件再出租（retenanting），加上一次性的多戶住宅費用節省，將使 NOI 較先前所述物業 NOI 區間的中點再增加額外數百萬美元。

Construction segment profit reported $4.1 million for the quarter, in line with our guidance expectations. The midpoint of this range remains at $13.75 million for the year, and we expect the quarterly construction segment profit in Q2 to be consistent with Q1 and lower in quarter 3 and quarter 4 . Our G&A expense recorded $5.7 million for the quarter and was marginally above our guidance due to timing variances.

營造事業部本季利潤為 410 萬美元，符合我們的指引預期。該區間的年度中點仍為 1,375 萬美元；我們預期第二季的營造事業部季度利潤將與第一季一致，而第三季與第四季將較低。本季一般及管理費用（G&A）為 570 萬美元，因時點差異而略高於我們的指引。

Quarter 1 always trends high, and we expect to achieve the midpoint of our previously stated G&A expense range. Interest income reported roughly 300 k more than expected for quarter 1 due to higher interest on overnight deposits. For the year, we have reduced our interest income range by $1.5 million due to our partners intend to exit one of the real estate financing projects sooner than anticipated.

第一季一向呈現較高水準，我們預期可達成先前所述 G&A（一般及行政）費用區間的中點。由於隔夜存款利息較高，第一季所報告的利息收入較預期約多 30 萬美元。就全年而言，由於我們的合作夥伴擬較原先預期更早退出其中一個不動產融資專案，我們已將利息收入區間下調 150 萬美元。

Interest expense for the quarter reported in line with our guidance expectations. We have, however, increased our interest expense range midpoint by $2 million, primarily due to higher interest rates than previously forecasted. Finally, based on refinancings, expected strategic dispositions of assets and the realization of capital from one of our real estate financing projects we are no longer modeling any material equity capital markets activity for the remainder of the year.

本季利息費用的表現與我們的指引預期一致。不過，我們已將利息費用區間的中點上調 200 萬美元，主要因利率高於先前預測。最後，基於再融資、預期的策略性資產處分，以及我們其中一個不動產融資專案資本回收的實現，我們在今年剩餘期間不再假設有任何重大的股權資本市場活動。

These details taken in aggregate result in our FFO guidance per diluted share range remaining at $1.21 per share to $1.27 per share. Before I pass over to Shawn, I would like to bring everyone's attention to a couple of updates we have made to the supplemental financial package.

綜合上述細節，我們每股稀釋後 FFO 指引區間仍維持在每股 1.21 美元至每股 1.27 美元。在我把時間交給 Shawn 之前，我想請大家注意我們對補充財務資料包所做的幾項更新。

On page 10 and page 16, we have added a credit profile and a portfolio profile, respectively. These two dashboard pages represent a range of metrics presenting valuable details on the company's performance. There are several new and revitalized metrics that we believe will assist you with your evaluation of our company's performance over the short.

在第 10 頁與第 16 頁，我們分別新增了信用概況與投資組合概況。這兩頁儀表板呈現一系列指標，提供公司績效的有價值細節。其中包含數項新增與重新強化的指標，我們相信將有助於您在短期內評估本公司的表現。

Thanks, Matt, and thank you all for joining us to review the quarter. I would like to start out by revisiting our 2024 guidance to ensure that we are all aligned on what is and what is not included in our unchanged guidance range of $1.21 to $1.27. I will walk you through the high-level components to add color to what Matt has just gone over.

謝謝你，Matt，也感謝各位參與我們的季度回顧。我想先回顧我們的 2024 年指引，以確保大家對於我們維持不變的 1.21 至 1.27 美元指引區間中包含與不包含的項目有一致理解。我將帶各位看過高層次的組成要素，為 Matt 剛才的說明補充更多背景。

As Lou said, the first significant change is the removal of any material equity capital market activity, given the current conditions. And that refers to not just our discounted stock price, but also what we are finding to be an aggressive and relatively deep bid for multifamily across several of our markets. Our assumptions now reflect capital being sourced primarily through an asset disposition later in the year.

如 Lou 所說，第一個重大變化是在目前環境下，移除任何重大的股權資本市場活動。這不僅是指我們折價的股價，也包括我們在多個市場看到對多戶住宅（multifamily）資產相當積極且相對深厚的買盤。我們目前的假設反映資金主要將透過今年稍晚的資產處分取得。

Specifically, we are modeling the disposition of a multifamily asset in the fall, had cap rates significantly more attractive than where the market is currently pricing. Our equity, our shareholders own embedded value, and we intend to prove it across all of our sectors. The portfolio is performing well as evidenced by 95% occupancy. This is slightly ahead of expectation through the first quarter.

具體而言，我們在模型中納入於秋季處分一項多戶住宅資產，其資本化率（cap rate）顯著優於目前市場定價水準。我們的股權、也就是股東所擁有的內含價值，我們打算在各個業務領域加以證明。投資組合表現良好，入住率達 95%。這在第一季略優於預期。

Therefore, the analog component of our guidance remains consistent with last quarter. That said, you should expect the year to be front-loaded from an earnings perspective for three reasons. First, the construction profit component of our income stream will be higher in the first half of the year and then will reduce for the third and fourth quarters, ultimately resulting in a targeted midpoint of $13.75 million of construction gross profit.

因此，我們指引中的類比（analog）組成部分與上季保持一致。不過，從獲利角度來看，您應預期今年將呈現前高後低，原因有三。第一，我們收入來源中的營建利潤部分在上半年會較高，第三與第四季將下降，最終目標為營建毛利中點 1,375 萬美元。

The second relates to our mixed-use development Southern post in Roswell, Georgia, unchanged in our guidance is the fact that while lease up of Southern post occurs through 2024 the carry cost associated with leasing up such a development will not be a positive earnings benefit realized in 2024. We do, however, expect that 2025 results will benefit handsomely from the asset's performance.

第二點與我們位於喬治亞州羅斯威爾（Roswell）的複合式開發案 Southern Post 有關；在我們的指引中不變的是：雖然 Southern Post 的招租將在 2024 年進行，但與此類開發案招租相關的持有成本在 2024 年不會帶來正向的獲利貢獻。不過，我們預期 2025 年的成果將因該資產的表現而大幅受益。

In a few moments, I will review the leasing of this highly anticipated development, which is progressing well across office retail in multifamily and finally, our partner has signaled the intent to pursue a sale of one of the assets in our real estate financing portfolio sooner than anticipated.

稍後我將回顧這個備受期待的開發案之招租情況；目前在辦公、零售與多戶住宅等面向的進展都相當順利。最後，我們的合作夥伴已表達意向，將比原先預期更早出售我們不動產融資投資組合中的其中一項資產。

As a result, we are forecasting a reduction in interest income for the second half of 2024. A sale would also result in our capital and accrued interest on that project returning in mid-summer, although we would have slightly less interest income than previously anticipated. We are pleased that our partners are contemplating an early sale transaction sale of a pre-stabilized apartment project at a mid-five cap rate in a market thought to be oversupplied demonstrate the strength of this asset class in our target markets.

因此，我們預測 2024 年下半年的利息收入將下降。若出售成交，也將使我們在該專案投入的資本與應計利息於仲夏回收，儘管利息收入會略低於先前預期。我們很高興合作夥伴正考慮提前出售一個尚未完全穩定（pre-stabilized）的公寓專案，且以約 5% 中段的資本化率成交；在被認為供給過剩的市場中，這也展現了該資產類別在我們目標市場的強勁韌性。

This potential sale demonstrates our partner, deep capability in the space. The strength of our real estate financing program and our collective ability to execute on successful preferred equity investment. We do expect to deploy a portion of the return capital into another preferred equity investment opportunity with the same partners, we are targeting a very attractive project located in another high-growth Southeast market.

這項潛在出售也展現了我們合作夥伴在該領域的深厚能力。同時也反映我們不動產融資計畫的實力，以及我們共同執行成功優先股權（preferred equity）投資的能力。我們預期將把部分回收資金投入另一個與同一合作夥伴進行的優先股權投資機會；我們鎖定的是位於另一個東南部高成長市場、極具吸引力的專案。

This investment is fully entitled and should commence in the fourth quarter. We anticipate funding a portion of this year and the balance in 2025, which will provide some offsetting interest income in 2024 and interest income in 2025 and into 2026.

該投資已取得完整開發許可（fully entitled），並應於第四季動工。我們預期今年將出資其中一部分，餘額於 2025 年投入，這將在 2024 年提供部分利息收入的抵銷效果，並在 2025 年及延續至 2026 年帶來利息收入。

Now as a reminder, I'll touch on what was not included in guidance. Specifically the we work income projections approximately $2 million of annual income associated with the work location in Atlanta was removed as of December 31, 2023, and was never included in 2024 guidance. While leasing activity on this vacant space is unlikely to materially affect 2024, it will be a significant opportunity for 2025 and beyond.

接著提醒一下，我會說明哪些項目未納入指引。具體而言，與亞特蘭大 WeWork 據點相關、約 200 萬美元的年度收入預估已於 2023 年 12 月 31 日起移除，且從未納入 2024 年指引。雖然該空置空間的招租活動不太可能對 2024 年造成重大影響，但將是 2025 年及之後的重要機會。

The Durham location, we were able to renegotiate a reasonable set of terms that keeps we work remaining in the property. We work will retain both floors in Durham for the remainder of the year, and we'll receive a discounted rent. In 2025, we work will vacate one of the floors and return to market rent on the remaining space. This is now our only we work lease currently representing less than 1% of portfolio ABR and going to less than 0.5% in 2025.

至於達勒姆（Durham）據點，我們已成功重新協商出一套合理條款，使 WeWork 得以續留於該物業。WeWork 將在今年剩餘期間保留達勒姆的兩個樓層，而我們將收取折扣租金。在 2025 年，WeWork 將退租其中一個樓層，並就其保留的空間恢復至市場租金水準。這將成為我們目前唯一的 WeWork 租約，現階段占投資組合 ABR（年化基礎租金）不到 1%，並將在 2025 年降至不到 0.5%。

Let me spend some time walking through our fundamentals across the sector in our commercial properties, value creation is realized through consistent leasing activity, re-leasing space and increase rents and market leading occupancy statistics. In addition to the daily management of over 700 tenants, we signed 24 commercial leases, including new extensions and options for a total of 115,000 square feet at re-leasing spreads of 11.5%, while maintaining an overall commercial occupancy of 95% through the first quarter.

接下來我花些時間說明我們商用不動產各業態的基本面：價值創造來自持續的招租活動、重新出租空間、提高租金，以及領先市場的入住率表現。除了日常管理超過 700 位租戶之外，我們簽署了 24 份商用租約（包含新租、續約與選擇權），總面積 115,000 平方英尺，續租價差（re-leasing spreads）為 11.5%，同時在第一季維持整體商用入住率 95%。

The office segment signed two lease renewals for a total of 18,000 feet at an average re-leasing spread of 14.2%. The retail segment executed 19 renewals and three new leases for a total of 98,000 square feet. The average re-leasing spread was 10.7%. The weighted average lease maturity of the commercial portfolio is 6.7 years with minimal short-term lease maturities.

辦公室業態簽署了 2 份續約租約，總面積 18,000 平方英尺，平均續租價差為 14.2%。零售業態完成 19 份續約與 3 份新租約，總面積 98,000 平方英尺。平均續租價差為 10.7%。商用投資組合的加權平均租約到期年限為 6.7 年，短期到期租約比例極低。

We believe that proactive tenant relationship management is key to maximizing NOI and property values. The multifamily portfolio beat our projections at over 95% occupancy. We expect this level of performance to sustain throughout the year. Our multifamily asset management team partners with property management firms who are experts in their respective submarkets, resulting in strong leasing and therefore sustained occupancy rates in the high 90s, the office product continues to produce superior occupancy results at 94% well above the high end of the broader peer set.

我們相信，主動的租戶關係管理是最大化 NOI 與物業價值的關鍵。我們的多戶住宅投資組合入住率超過 95%，優於我們的預測。我們預期這樣的表現水準將可維持全年。我們的多戶住宅資產管理團隊與各自次級市場的專業物業管理公司合作，帶來強勁的租賃表現，因而使入住率得以維持在接近 90% 後段的高水準；同時，辦公產品的入住率也持續表現優異，達到 94%，明顯高於同業可比組合的高端水準。

This level of relative success is a direct result of the location of our assets in mixed use ecosystem, 97% of our office space has walkable mixed-use environments. We intentionally place our buildings, which are generally newer in their respective markets and provide top-tier amenities that create demand from investment grade tenants who prefer our properties over anything else in the market.

這樣的相對成功，直接源自我們資產位於複合式使用生態系中的區位優勢；我們 97% 的辦公空間都處在可步行到達的複合式使用環境中。我們刻意配置我們的建築物——通常在各自市場中相對較新，並提供頂級設施——以創造來自投資等級租戶的需求，這些租戶偏好我們的物業勝過市場上任何其他選擇。

In most cases, our office properties are in a class of themselves in each market with no real competition. This strategy continues to underpin the future growth of our company, most notably in southern post and Harbor Point development projects. Our construction business continues to produce record results while working through a $343 million current backlog the first quarter yielded profit results consistent with the targeted projections included in our 2024 guidance.

在多數情況下，我們的辦公物業在各個市場中自成一格，幾乎沒有真正的競爭對手。這項策略持續支撐公司未來成長，尤其是在 Southern Post 與 Harbor Point 的開發專案上最為明顯。我們的營建事業在處理目前 3.43 億美元的在手訂單（backlog）之際，仍持續創下紀錄表現；第一季的獲利結果與我們 2024 年財測指引中所設定的目標預測一致。

The partner firms using our construction expertise continued to identify and execute on opportunities that allow us to demonstrate our capabilities and collect market data for our internal underwriting of further development and construction opportunities.

使用我們營建專業能力的合作夥伴公司，持續辨識並執行各項機會，使我們得以展現能力，並蒐集市場數據，以供我們內部對進一步開發與營建機會進行承作評估（underwriting）。

The development platform continues to also produce results consistent with guidance. And we expect delivery of three projects through the end of this year, setting us up to realize the embedded earnings growth into 2025. Although we forecast leasing to continue to accelerate, as I mentioned earlier in the call, we will experience carried cost during lease up in the second half of 2024 as we approach stabilization into 2025.

開發平台同樣持續產出與指引一致的成果。我們預期在今年年底前交付三個專案，讓我們得以在 2025 年實現內含的獲利成長。儘管我們預測租賃將持續加速，如我先前在電話會議中提到的，當我們在 2024 年下半年進行出租爬坡（lease-up）並朝 2025 年穩定化邁進時，將會承擔持有成本（carried cost）。

As I mentioned, leasing has been robust at the southern post project, especially in the commercial space, demonstrating the strong demand in this new soon to be trophy asset in downtown Roswell, Georgia only 14 miles due north of bucket. We are now 71% leased in the commercial space at rents running ahead of pro forma levels. Similarly, the apartment rents are slightly above pro forma underwriting and move-ins recently commenced.

如我所提，Southern Post 專案的租賃表現相當強勁，尤其是商業空間，顯示這項位於喬治亞州羅斯威爾（Roswell）市中心、距離 Buckhead 正北 14 英里的新、即將成為地標級（trophy）資產，需求非常強勁。我們目前商業空間已出租 71%，租金水準高於原先的預估模型（pro forma）。同樣地，公寓租金也略高於 pro forma 承作假設，且近期已開始入住。

The apartments are 15% leased, and we expect this momentum to continue given the limited supply of high-quality product in the submarket. And as we approach the historically active spring and summer months, T. Rowe Price global headquarters project is looking great as we approach anticipated move in later this year. The trophy built-to-suit project is well situated among our assets on the peninsula and will bring thousands of professional workers to the site.

公寓目前已出租 15%，鑑於該次級市場高品質產品供給有限，我們預期這股動能將持續。此外，隨著我們進入歷來活躍的春夏旺季，T. Rowe Price 全球總部專案進展良好，並正接近今年稍晚預期的進駐時間。這個量身打造（built-to-suit）的地標級專案，位於我們半島資產群之間的優越位置，將為該基地帶來數千名專業人士。

We are looking forward to the continued flight to quality that will be experienced by top-tier credit tenants and having our ecosystem at Harbor Point, the Allied apartment project is also progressing nicely, and we will be nearing completion in the months to come. This 312 unit high-rise apartment building sits at the top of the market and its parking garage component also complements the T. Rowe Price project, its views and amenities are virtually Baltimore's best, and we look forward to this complementing our other trophy apartment project at 1405 Point Street.

我們期待頂級信用租戶持續出現「追求高品質」（flight to quality）的趨勢，並在 Harbor Point 的生態系中體現；同時，Allied 公寓專案也進展順利，未來幾個月將接近完工。這棟 312 戶的高層公寓位於市場頂端，其停車場（parking garage）部分也與 T. Rowe Price 專案相互補強；其景觀與設施幾乎可說是巴爾的摩最佳，我們也期待它能與我們在 1405 Point Street 的另一個地標級公寓專案形成互補。

Finally, given our performance, asset quality, value creation machine and continued focus on shareholder returns. We believe that our firm is well positioned for the future. We believe our equity is trading at a discount to NAV, and we will take any steps necessary to realize that value for our shareholders, including asset sales to provide growth equity at the stock market for real estate remains undervalued. Operator, we are ready for the question and answer session.

最後，基於我們的營運表現、資產品質、價值創造引擎，以及對股東報酬的持續聚焦，我們相信公司已為未來做好良好布局。我們認為本公司股價相對於 NAV（淨資產價值）存在折價，我們將採取一切必要措施為股東實現該價值，包括出售資產以提供成長型股權資金；目前股票市場對不動產仍被低估。主持人，我們已準備好進入問答環節。

Thank you. (Operator Instructions)

謝謝。（主持人指示）

Rob Stevenson, Janney.

Rob Stevenson，Janney。

Good morning, guys. Shawn, thanks for the detail. I guess one question on the leasing side. How should we be thinking about occupancy in the office and retail portfolios ebbing and flowing throughout the year? Are there substantial move outs of consequence that is going to cause it to dip.

各位早安。Shawn，謝謝你提供這麼多細節。我想問一個關於租賃面的問題。我們應該如何看待辦公與零售投資組合的入住率在一年當中上下波動？是否會有一些具影響性的退租，導致入住率下滑？

And then the new leases signed, bringing it back up, is it relatively sort of tit for tat in terms of trade outs, et cetera. How should we be thinking about that as we work on our models throughout the year?

然後再由新簽租約把入住率拉回來——在換租（trade-outs）等方面，是否大致屬於你來我往（tit for tat）的情況？在我們全年建立模型時，應該如何思考這件事？

Yes, I think Guy, and thanks for the question, Rob. Thank you for being here this morning in the retail, I would to use your term characterize it as tit for tat. There are some 10 and 20,000 foot move out and then so backfills, we have a lot of activity in the space, which we are excited about, I would say in the office, the main driver of the occupancy at least sitting where it is today, is that law. So we work or the removal of we work that intentional removal in Atlanta. So we lost 40,000 feet there.

是的，我想——Guy——也謝謝你的問題，Rob。謝謝你今天早上參與。就零售而言，我會用你的說法，把它形容為你來我往（tit for tat）。會有一些 1 萬到 2 萬平方英尺的退租，接著也會有回填（backfills）；我們在這個空間有很多活動，這讓我們很振奮。我會說在辦公方面，至少就目前的入住率水準而言，主要驅動因素是那個法律（law）。因此我們在亞特蘭大處理 WeWork——或是移除 WeWork，那是我們刻意的移除。所以我們在那裡少了 4 萬平方英尺。

Good activity there. As I said in the comments, I'm not certain that we'll get that done this year, but we certainly have some activity down there. So we'll see how that plays out. So we should view that as relatively consistent in the office in the multifamily space. It's a little misleading.

那邊有不錯的活動。如我在評論中所說，我不確定今年是否能把它完成，但我們在那裡確實有一些進展。所以我們會看看後續如何發展。因此，辦公方面應視為相對穩定；至於多戶住宅方面，情況有點容易造成誤解。

We have actually 41 units down at the end of the quarter. That number has shrunk to more like 30, 28 units, somewhere in that range due to water issues and a flood down in North Carolina. So the adjusted occupancy by the way we kept those in the denominator, the adjusted occupancy would have been 96 points and excuse me, 96.2%. So we're seeing good activity there. We're actually seeing trade outs improve and the trailing 30 over what was the quarter one results were up closer to over 1% blended trade out there. So we see a very nice strength there, and we're looking forward to continued our continued success in the multifamily space.

實際上，我們在季末少了 41 戶。由於北卡羅來納州的用水問題與洪水，這個數字已縮小到大約 30 戶、28 戶，差不多在這個範圍。因此，調整後的入住率——順帶一提，我們仍把那些單位放在分母裡——調整後入住率本來會是 96 點，呃，應該說 96.2%。所以我們看到那邊有不錯的活動。我們也看到換租（trade-outs）有所改善；以最近 30 天來看，相較第一季結果，混合換租（blended trade out）上升到更接近、甚至超過 1%。所以我們看到非常好的強勢表現，也期待多戶住宅領域能持續成功。

Okay. You mentioned we work the page 19 of the supplemental with the one lease $1.35 million of ABR is the 1.35 of ABR the reduced rent level for the remainder of '24? Or is that what they were paying previously to coming to the agreement.

好的。你提到 WeWork——在補充資料第 19 頁，有一筆租約的 ABR 為 135 萬美元；這 135 萬的 ABR 是 2024 年剩餘期間的調降後租金水準嗎？還是他們在達成協議之前原本支付的金額？

Yes, sir. The super spot on the one three four is the reduced rent level essentially through the end of 2024. You will see that number drop down to a 50 or so in 2025, which obviously will drop them out of the top 20. And that was my comment less than 0.5% of the ABR, if you will.

是的，先生。那個 134 萬（one three four）上的數字，基本上就是調降後的租金水準，會一路到 2024 年底。你會看到 2025 年那個數字會降到大約 50 萬左右，這顯然會讓他們掉出前 20 大租戶。這也就是我所說的——如果你願意這麼看——不到 ABR 的 0.5%。

Okay, that's helpful. And then are you able to currently market the second floor that's going to vacate to get a jump on the basically have somebody signed ready to go in there once reconstruction is done or they or is it going to be a later this year events that you guys are the market that ?

好的，這很有幫助。那麼你們目前是否能夠把即將空出的二樓先拿去行銷，搶先一步，基本上在重建完成後就能有人簽好約準備進駐？還是說你們會等到今年稍晚才開始行銷？

We have a cooperative relationship with the tenant and so we are able to reasonably get and market the space. So yes, essentially, that space will come back to us Jan 1 and our hope is to, to your point, have had good activity between then and now.

我們與租戶有合作關係，因此我們能夠合理地取得並行銷該空間。所以是的，基本上該空間會在 1 月 1 日回到我們手上，而我們希望，如你所說，在此期間能有不錯的洽詢與活動。

Okay. And then you obviously have, you know, three big projects, all three are supposed to complete later this year. How are you guys thinking about new starts once those three projects complete? Is stuff teed up? Is the environment not such that you're likely to start anything in the back half of '24, early '25, how should we how are you guys thinking about development? How should we be thinking about development once these three are completed?

好的。另外你們顯然有三個大型專案，三個都預計在今年稍晚完工。這三個專案完成後，你們如何看待新的開工？有東西已經準備好了嗎？還是環境使得你們不太可能在 24 年下半年、25 年初啟動任何新案？你們怎麼看開發？這三個完成後，我們應該如何看待你們的開發策略？

We're obviously. So our expectation would be the only thing that we will embark on the rest of 2024 is the redevelopment of Columbus Village with the old Bed Bath space. I look for some really nice announcements on that coming up of beyond that right now, we're not seeing anything that pencils to be worthy of worthy of any of our equity.

我們當然。所以我們的預期是，2024 年剩下的時間裡，我們唯一會著手的是 Columbus Village 內原 Bed Bath 空間的再開發。我預期接下來會有一些非常不錯的相關公告。除此之外，就目前而言，我們沒有看到任何案子在試算後值得投入我們的股權資金。

With where construction prices it are and interest rates the spread, we look to have a 150 to 200 basis point spread on launching a development that would make those things accretive to the company right now that spreads just not attainable.

以目前的施工成本與利率水準來看，我們希望在啟動一個開發案時能有 150 到 200 個基點的利差，才能讓這些案子對公司具有增益；但目前這個利差就是達不到。

I shouldn't say it's not attainable in any of the sectors that we would want to launch something at Believe it or not. There's a number of office build to suit opportunities out there, and we're just not right now in the appetite of launching any office space.

我不該說完全達不到；在我們想要啟動的任何領域裡，這個利差都不太可能。信不信由你，市場上其實有不少辦公室量身訂做（build-to-suit）的機會，但我們目前沒有意願啟動任何辦公空間。

Okay. That's helpful. And then last one for me, Matt, on the mess that you expect to come out this year, is that Solar City Park two? Or is that one of the other ones. Just trying to figure out how we should be thinking about money to you and lost interest income going forward.

好的。這很有幫助。最後一個問題，Matt，關於你們預期今年會退出的那個「mess」，那是 Solar City Park two 嗎？還是其他其中一個？我只是想釐清，我們接下來應該如何看待你們的資金運用以及利息收入的減少。

Rob, let me jump in on the actual identification of that property. We believe it's probably best for our partner to announce that for a number of reasons, competitive and so on and so forth. But I'll defer to Matt, on the second piece of the question.

Rob，我先插一句，關於那個資產的具體辨識。基於多種原因（競爭等），我們認為最好由我們的合作夥伴來對外宣布。至於問題的第二部分，我交給 Matt 回答。

Yes, good morning, Roque. But yes, your assumptions are correct that we will reduce the interest income. We expect the expectation of interest income when on that, that properties potentially exited from the programs as we've had in guidance, we will look to deploy some of that in a in another or a new real estate financing project later in the year. But I just would caution that not all of them. I will go straight back out at once and it's going to going to take a little bit of time for those to our schedules to go to go through. So we anticipate potentially a small portion of that going back out in the final quarter of the year.

是的，早安，Roque。不過是的，你的假設正確，我們會降低利息收入。我們對該利息收入的預期是：當那些資產可能從相關計畫中退出時（如我們在指引中所提），我們會在今年稍晚把其中一部分資金投入另一個或新的不動產融資專案。但我也要提醒，不會全部一次就立刻重新投放出去，因為流程與時程需要一點時間來走完。因此我們預期，可能只有一小部分會在今年第四季重新投放。

Okay. That's helpful, guys. Thanks. I appreciate the time this morning.

好的。這很有幫助，各位。謝謝。感謝你們今天早上的時間。

Thanks a lot Rob.

非常感謝你，Rob。

Peter Abramowitz, Jefferies.

Peter Abramowitz，Jefferies。

Yes, I yes. So thanks for the time. I noticed you added a chart in there with your multifamily trade out, and I think it's kind of negative mid-single digits this quarter and last quarter on new leases, could you just talk about kind of the trend there, what your expectations are for the rest of the year, whether you have sort of any visibility to an inflection and sort of what's embedded in the guide?

是的，我，是的。謝謝撥冗。我注意到你們在簡報裡新增了一張關於多戶住宅（multifamily）換租（trade-out）的圖表，我想本季與上季新租約大概是負的中個位數；你們能談談這個趨勢嗎？你們對今年剩餘時間的預期是什麼？是否對拐點有任何能見度？以及指引裡隱含了什麼假設？

Sure. Thank you for being here this morning, Peter. Yes, the on the blended was 0.1 for the quarter positives, new leases to your point were about 4.5 negative while renewals were 5.2. The positive, what we're seeing since then and the kind of trailing 30 is about a 1% positive trade out blended that that negative on the new leases has shrunk to about 2.5% and then the renewals are up in the four% plus range.

當然。謝謝你今天早上參與，Peter。是的，本季整體混合（blended）為正 0.1；如你所說，新租約約為負 4.5，而續租為正 5.2。正面的部分是，我們在那之後、近 30 天的滾動數據看到混合換租約為正 1%；新租約的負值已縮小到約 2.5%，而續租則上升到 4% 以上。

So we're seeing improvement there. I think we should be thinking about a year of 95% occupancy, give or take and 1% to 2% trade outgrowth on kind of blended. So we're seeing strength improve there. A lot of this has to do it in the first quarter. Supply online. As most people know, there are some challenges, some headwinds, I would say in supply in the Charlotte market, some in the Richmond market, but we also are seeing kind of offsetting strength in the Virginia Beach and Baltimore markets.

所以我們看到那邊正在改善。我認為今年可以用約 95% 的入住率（上下些微波動）以及混合口徑約 1% 到 2% 的換租成長來看。因此我們看到強度在提升。其中很大一部分與第一季新增供給上線有關。如大家所知，供給面有一些挑戰、一些逆風；我會說在 Charlotte 市場有一些，在 Richmond 市場也有一些，但我們也看到 Virginia Beach 與 Baltimore 市場有相對的強勢來抵消。

So I would say, yes, you should probably see low single digits blended on a go forward basis and driven by stronger renewals and improving new lease numbers.

所以我會說，是的，往後你們大概會看到混合口徑為低個位數，主要由較強的續租以及改善中的新租約數據所帶動。

Got you. That's helpful. And then another question on multifamily. So you talked about a pretty strong cap rate on the disposition that you're expecting. I think you mentioned that the asset is in the Southeast where a lot of the supply issues are happening, and I think your occupancy is lower than the rest of your multifamily portfolio. I guess just trying to get some context around the cap rate there?

了解。這很有幫助。另外一個關於多戶住宅的問題。你們提到預期處分案的資本化率（cap rate）相當不錯。我想你們提到該資產在美國東南部，那裡正發生不少供給問題，而且我看你們的入住率也低於你們其他多戶住宅投資組合。我只是想了解一下那個 cap rate 的背景？

Because it would seem that, you know, the pool of capital still pretty deep pricing still pretty attractive. Is it simply kind of buyers are just short of brushing off the supply and looking through that in the next year or two or just some context around how you can still get the strong pricing despite the supply challenges?

因為看起來資金池仍然很深、定價也仍相當有吸引力。是否只是買方基本上忽略供給問題、把它視為未來一兩年的短期因素？或者你能提供一些背景，說明在供給挑戰下你們仍能取得強勁定價的原因？

Peter, I'll let Shawn answer that specifically, but I want to make sure we reiterate what we said earlier, that occupancy is what looks like a dip in occupancy in those properties down there is solely due to the insurance claim. So we left those units in the denominator and perhaps maybe we shouldn't have, but we wanted to be as accurate as possible. We expect to lease right back up once they come back online. So there really wasn't a dip in occupancy. Go ahead Shawn.

Peter，我會讓 Shawn 具體回答，但我想先重申我們先前說過的：那邊看起來入住率下滑，完全是因為保險理賠事件。所以我們把那些單位仍放在分母裡，也許我們不該這麼做，但我們希望盡可能精準。一旦那些單位重新上線，我們預期會很快再租回來。所以實際上並沒有入住率下滑。Shawn，你來。

Yes, I think what you're referring to Peter is on Page 17. The Southeast Sunbelt looks like it's our dip to 91.1 right in that range and again, there are 41 units not contributing to the occupancy there. So to Lou's point, we thought that given there's an insurance kind of effort moving forward, we thought we should keep in the denominator. We've got that either way but again, adjusted holistically, high-level macro, we're at 96.2% when adjusting for those 41 down units.

是的，Peter，我想你指的是第 17 頁。東南部 Sunbelt 看起來像是我們下滑到 91.1% 左右，而同樣地，有 41 個單位沒有計入那邊的入住貢獻。所以如 Lou 所說，考量到後續有保險相關作業在進行，我們認為應該把它保留在分母中。不論如何我們都有掌握；但若整體調整後、以高層次的宏觀角度來看，把那 41 個停用單位調整掉後，我們的入住率是 96.2%。

To your question about the strength of, I would say that the interest in our asset is due to the quality and due to location, as is typical with our properties. And this the strength of that particular asset has been great for us. But we believe, as Lou said earlier, that, and as I alluded to yielding or harvesting that capital at those types of cap rates is probably the most prudent move for us in terms of capital.

針對你關於強勁程度的問題，我會說，市場對我們該資產的興趣來自於品質以及地段，這也符合我們物業一貫的特性。而該特定資產的強勢表現對我們而言一直非常好。但我們相信，如 Lou 先前所說，以及我剛才提到的，以那樣的資本化率去實現收益或回收資本，從資本配置角度來看，可能是我們最審慎的做法。

That's helpful. And then one more for me. I just want to go back to Lou's comment a minute ago about office build-to-suits, um, so it sounds like you're hesitant to kind of get started on those. Is that a more a factor of just not wanting to increase office exposure or is it more about the construction costs. And then once the tenants understand kind of the premium rent they have to pay, they're a little hesitant and the deals won't pencil?

這很有幫助。然後我還有一個問題。我想回到 Lou 剛才對辦公室量身打造（build-to-suit）的評論，嗯，聽起來你們對於開始做這類案子有點猶豫。這比較是因為不想提高辦公室曝險，還是更多是因為施工成本？另外，當租戶理解他們必須支付的溢價租金後，他們會有點猶豫，導致交易算不過來（won't pencil）嗎？

It's really the latter, Peter. We would engage with a credit tenant that would honor the spread we need to make in order to launch today. That number is outside the realm of what people are willing to pay and I expect that will change at some point, I expect trophy office buildings to go back to normal normalized cap rates and in not-too-distant future or in the next year or two. So we'll be on the lookout.

主要是後者，Peter。如果是信用良好的租戶，願意接受我們為了在當下啟動案子所需要的利差，我們會願意合作。但那個數字超出多數人願意支付的範圍；我預期某個時間點會改變，我也預期頂級辦公大樓會在不久的將來、或未來一兩年內回到正常化的資本化率。所以我們會持續留意。

But right now, they just they just don't pencil. And we don't want to we've seen some real estate companies play the game of looking at year four or five as far as stabilization and saying that they're making a spread that's just not a game blade for 40 years are not going to start now.

但就目前而言，這些案子就是算不過來。而且我們不想——我們看到有些房地產公司玩一種遊戲：把穩定期拉到第 4 年或第 5 年，然後宣稱自己做出了利差；這種玩法我們做了 40 年都不是這樣做的，也不會現在才開始。

Got you. That's helpful. And I guess one more while I have you any particular markets where those requirements are kind of most active right now?

了解。這很有幫助。我想再問一個：目前有沒有特定市場，這些需求特別活躍？

It's really in our in our ecosystem of mixed use. And so you can guess there's still a lot of activity in Baltimore. We've got a couple of tenants that would love to get into Harbor Point. We just don't have the room and here in Virginia Beach, where we're still trying to shoehorn in tenants in a 99% occupied building. But again, it just you just can't launch.

主要是在我們的複合式用途（mixed-use）生態系裡。所以你可以想像，巴爾的摩仍然有很多活動。我們有幾個租戶很想進 Harbor Point。只是我們沒有空間；另外在維吉尼亞海灘這邊，我們還在一棟入住率 99% 的大樓裡想方設法塞進租戶。但同樣地，就是沒辦法啟動新案。

Got it. Well, that's all for me. Thanks.

了解。我這邊就到這裡。謝謝。

Camille Bonnel , Bank of America.

Camille Bonnel，美國銀行。

Good morning. You had mentioned dispositions are your preferred route to raise capital today. So just wanted to expand on this a bit more how big you expect this program will be what kind of assets are you looking to sell? And if you started marketing assets, how is interest been?

早安。你提到目前處分資產是你們偏好的募資途徑。所以想再延伸問一下：你們預期這個計畫規模會有多大、打算出售什麼類型的資產？以及如果你們已經開始推向市場，市場興趣如何？

As I mentioned, we will say we're looking at two at most three assets for disposition. And I can tell you the interest is strong. We're waiting. These are noncore assets that we're waiting on a few brokers' opinions of value before we decide where to pull the trigger, but we're getting unsolicited offers or offers in on just about everything we own in the southeast of a multifamily variety.

如我提到的，我們會說目前最多看兩個、至多三個資產進行處分。我可以告訴你，市場興趣很強。我們正在等待。這些是非核心資產，我們在決定何時扣下扳機之前，正等待幾位仲介對價值的意見；但我們在東南部幾乎所有我們持有的多戶型（multifamily）資產上，都收到主動上門的詢價或出價。

Again, as Shawn alluded to, quality is everything for us for an investor that's looking for multiyear hold. They're viewing the current environment as an opportunity to pick up quality real estate at a discount and operated for years to come so the growth markets are still we're still where that activity is going to happen and we'll we will be making some announcements in the not-too-distant future on where that stands.

同樣地，如 Shawn 所提到的，對我們而言品質就是一切；對於尋求多年持有的投資人來說，現在的環境被視為以折價買進優質不動產、並在未來多年持續營運的機會。因此成長型市場仍然——活動仍會發生在那些地方；我們也會在不久的將來就進展發布一些公告。

But as you might expect at the kind of cap rates we're looking at is by far the most efficient way to raise capital. And as I said with as many as five properties coming online and maybe a subtraction to the Company will be substantially larger next year in any results.

但如你所預期，以我們正在看的那種資本化率來說，這無疑是最有效率的募資方式。而且如我所說，隨著多達五個物業上線，再加上公司可能會有一些減項調整，明年公司規模將會大幅增加，反映在各項結果上。

Shifting to the balance sheet, how are conversations with your lenders going on around your extension? And are there any updates on how you plan to address any near-term maturities? Just trying to get a sense of how far you are looking across your debt expiration profile when you're doing your capital planning?

轉到資產負債表，你們與放款機構就展期的溝通進展如何？以及你們打算如何處理近期到期債務，有沒有任何更新？我想了解的是，在做資本規劃時，你們會把視野拉到多遠來看整體債務到期結構？

Yes. Good morning, Camille. So yes, a lot of a lot of interest from lenders initially when we've looked at a couple of the term loans we have and I mean we have capacity on them to syndicate and I would say that it still is still limited the lenders off slowly coming back to the market to have those conversations. And it's better than it was last year when I would say that there was probably very limited lending activity, but that is that has eased up here in the in the 1 of the year.

是的。早安，Camille。所以是的，一開始放款機構的興趣很高，當我們檢視幾筆定期貸款時——我的意思是，我們在那些貸款上有能力做聯貸分銷；但我會說目前仍然有限，放款機構正慢慢回到市場來進行這些對話。這比去年好，去年我會說放款活動可能非常有限；但今年年初以來確實有所緩解。

We have on a couple of small maturities this year that we're going to pay off that maturity and we had a construction loan that we were able to extend. We have two one-year extension options on a relatively good rate that we pulled the first one-year extension option on.

我們今年有幾筆小額到期款，我們會償還到期債務；另外我們有一筆建築貸款已成功展期。我們有兩個一年期的展期選項，利率相對不錯，我們已經啟用第一個一年期展期選項。

So it's nothing for us really, really too much concern until we get into the end of 2026. But yes, we're in constant contact with all of our lending partners to make sure that the debt side of the capital is available as and when we may need.

所以對我們而言，真正需要太多擔心的時間點要到 2026 年底。但沒錯，我們會持續與所有放款夥伴保持聯繫，確保在我們可能需要時，資本結構中債務端的資金可用。

Okay. When do you think about those 2026 maturities is the idea to in no way or is there opportunity to address those maturities today? I think you've seen in our mix strategies across the region in terms of how far they're looking out.

好的。當你們看待 2026 年到期債務時，想法是一定要等到那時候，還是現在就有機會處理這些到期？我想你也看到區域內同業在策略組合上，對於要提前看多遠的做法不太一樣。

So we are always monitoring on those maturities, as you know, as we transition into this unsecured balance sheet and there are very, very limited prepayment penalties on those loans. So at the right rates, of course, we would go ahead and refinance or extend those terms out as and when we as and when we could, we would love at some point as we have said, to utilize our investment grade credit rating on.

所以我們一直都在監控這些到期，如你所知，隨著我們轉向無擔保的資產負債表，這些貸款的提前清償罰金非常、非常有限。因此在合適的利率下，當然我們會選擇再融資或把期限往後延，能做的時候就會做；而且我們也希望在某個時間點，如我們所說，能運用我們的投資級信用評等。

The rates and the spreads on the treasury is still a little bit rich for proper pace right now. But yes, we will continue to monitor up and at the appropriate time we will take the appropriate action.

目前美國公債的利率與利差對於合適的定價而言仍然偏高一些。但沒錯，我們會持續監控；在適當的時間點，我們會採取適當的行動。

Finally, the new leasing activity with retailers have been slowing over the past few quarters, we've been hearing that retailers, though are moving forward with their store opening plans. So just wondering to get more insight on what tenants are saying to you and are they prioritizing certain markets ?

最後，過去幾季零售商的新租賃活動一直在放緩，我們也聽到零售商仍在推進他們的開店計畫。所以想請你多分享一些：租戶對你們怎麼說？他們是否會優先考量某些市場？

They certainly are price wars prioritizing certain markets and again, back to the growth markets, we really haven't seen any kind of a slowdown in expectations or remember, our portfolio is 95% leased. So there just isn't that much room to do a whole lot of the vacancies that John mentioned.

確實如此，這些是價格戰，優先針對某些市場；再回到成長型市場，我們其實沒有看到任何預期放緩的跡象。或者說，請記得，我們的投資組合有 95% 已出租。因此，John 提到的那些空置，其實沒有太多空間可以做很多調整。

We already have prospects for all of them, actually multiple prospects. So we are not seeing that. But again, that's we think that's markets specific. I'm not sure what's happening in the rest of the country, but we're seeing robust sales really across the board with people that report sales.

事實上，我們對所有這些空置都已經有潛在客戶，而且是多個潛在客戶。所以我們沒有看到那種情況。但再說一次，我們認為那是特定市場的現象。我不確定全國其他地區的情況如何，但我們看到整體而言銷售表現強勁，幾乎各方面都是如此，尤其是那些會回報銷售數據的人。

Shawn, do you want to add to that.

Shawn，你要補充一下嗎？

Yes, I would just add to that, that generally speaking, those decisions are driven by rooftops in the kind of immediate vicinity as well as foot traffic and I'm tying that back to well-located properties, right? So where our ecosystems are driving traffic people want to be located and statistically, that's where business is done. So I think to Lou's point, we're seeing good activity.

是的，我只想補充，一般來說，這些決策是由周邊即時範圍內的店點（rooftops）以及人流所驅動的；我把這點連回到「位置良好的資產」，對吧？所以當我們的生態系統帶動人流時，人們就想進駐，而從統計上看，生意就是在那裡發生的。所以我認為就像 Lou 所說的，我們看到不錯的活動。

And yes, to your point, Camille, we are seeing people actually signing up, which is a good thing, a little bit different than it was, say four years ago. And so we feel good about that and looking forward to continued success in that space.

而且是的，Camille，正如你所說，我們確實看到有人實際簽約，這是好事，跟例如四年前相比有些不同。因此我們對此感到樂觀，也期待在這個領域持續成功。

Thanks for taking my questions.

謝謝回答我的問題。

Thank you.

謝謝。

Bill Crow, Raymond James. Please go ahead.

Raymond James 的 Bill Crow。請開始。

Good morning, Lou I was looking back through some old notes and I made it back to 2018, and I'm sure I could come back on the but further. But during the last six years, we've been talking about uncomfortable levels of balance sheet leverage. And during those six years, you have chances to issue equity at or certainly near $20 a share to sell assets hit the pause button on new investments, mez commitments, et cetera.

早安，Lou。我回頭翻了一些舊筆記，最早看到 2018 年，當然我也可以再往前翻。但在過去六年裡，我們一直在談資產負債表槓桿處於令人不安的水準。而在這六年期間，你們有機會在每股 20 美元或至少接近 20 美元時發行股權、出售資產、暫停新的投資、夾層（mezz）承諾等等。

So why are we still talking about the balance sheet? And I get the dilution to sustain, but I also see a stock price of sub $11. It certainly reflects leverage levels that are higher than that, then it should be. So how do we do we ever get it back down? Or is it just difficult to say, known and good project?

那為什麼我們現在還在談資產負債表？我理解為了維持而稀釋的問題，但我也看到股價低於 11 美元。這顯然反映出槓桿水準高於應有水準。所以我們要怎麼把槓桿降回來？還是說這只是很難說、已知且不錯的專案？

So I appreciate the question, Bill, and also I want to clear up something that might have been a misunderstanding. A change in fair value of derivatives is excluded from our core results on this year. And this quarter it was positive. Last quarter, it was negative, which is exactly why we exclude it. So I want to make sure nobody picks up the fact that we made some money or made some money on paper regarding a derivative.

Bill，我很感謝這個問題；另外我也想澄清一件可能被誤解的事。衍生性金融商品公允價值變動在今年是被排除在我們的核心結果之外的。而本季它是正向的。上季它是負向的，這正是我們把它排除的原因。所以我想確保沒有人誤以為我們在某個衍生品上賺了錢，或在帳面上因衍生品而賺了錢。

Bill, as far as your other question, I think we're always going to be on the higher side of leverage a company our size that has the kind of development activity that we have is always going to be on the higher side simply because the most efficient way to do development is with as much debt as possible. And then ultimately, when those projects stabilize and bring them online and you deliver.

Bill，至於你另一個問題，我認為以我們這種規模、且有我們這種開發活動的公司，槓桿大概永遠都會偏高；原因很簡單，因為做開發最有效率的方式就是盡可能使用更多的債務。然後最終，當那些專案穩定並上線、交付時……

And so I think the short term debt is a reality of the way the way we sit in the marketplace. We have delivered with $18 stock and $15 stock. We have sold assets at 4.15 cap rates, and we're going to continue to operate that strategy ultimately of with match plan of ultimately going into the preferred bond market. And that leverage will come down to where we would like to see it in that 5.5 times range. But again, that will simply be on our core portfolio because development is always going to be full leverage.

所以我認為短期債務是我們在市場上所處位置的一個現實。我們在股價 18 美元、15 美元時都曾完成交付。我們也曾以 4.15% 的資本化率出售資產，而我們會持續執行這個策略；最終依照配套計畫，會進入優先股與債券市場。而槓桿會降到我們希望看到的水準，大約在 5.5 倍的區間。但再說一次，那只會反映在我們的核心投資組合上，因為開發業務永遠都會是滿槓桿。

Appreciate that. When do you think we can get to 5.5 times is that. So two years three, I mean, just give us a target to kind of think about.

了解，謝謝。你認為我們什麼時候能到 5.5 倍？是兩年、三年？我的意思是，給我們一個可以參考的目標。

I think you're a couple of years out. And again, I mean, we need the macro economy too, to participate in that you'd like to see some normalization of interest rates and spreads come in a little bit. But we're used to the position as I said in the US.

我認為還要再過幾年。而且同樣地，我們也需要總體經濟配合；你會希望利率與利差能有一些正常化、利差收斂一些。但我們已經習慣了我剛才所說在美國的這種處境。

At the outset, we're comfortable at these levels. As you probably recall, Bill, we've never gone below 93% occupancy in the Great Recession in 2008, our portfolio went all the way down to 92%. That's an all-time low. And so we don't really have a lot of speculative income to concern to be concerned about where the leverage sit. That said, obviously, the market we'd like to see it lower. We'd like to see it lower. We're just not going to do it at any cost.

一開始我們就說過，我們對目前這些水準感到安心。你可能還記得，Bill，在 2008 年金融海嘯期間，我們的入住率從未低於 93%，我們的投資組合最低曾到 92%。那是歷史最低點。因此，我們沒有太多投機性的收入需要擔心，也不太需要擔心槓桿所在的位置。話雖如此，顯然市場希望看到它更低。我們也希望看到它更低。只是我們不會不惜任何代價去做到。

Okay. Thank you.

好的。謝謝。

Thank you. And there are no further questions at this time. I would like to turn it back to Lou Haddad for closing remarks.

謝謝。目前沒有其他問題。我想把時間交回給 Lou Haddad 做結語。

Thanks very much for your time and attention this morning. It's been a great quarter and we look forward to another great quarter of assets in just another couple of months. Take care and have a great day.

非常感謝各位今天早上的時間與關注。這是一個很棒的季度，我們也期待在再過幾個月，資產表現能再迎來另一個很棒的季度。保重，祝各位有美好的一天。

Thank you, presenters. And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝各位簡報者。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。