AH Realty Trust, Inc (AHRT) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler second quarter 2024 earnings conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session (Operator Instructions). This call is being recorded on Thursday, August 8, 2024.

各位女士、先生，早安，歡迎參加 Armada Hoffler 2024 年第二季財報電話會議。目前所有線路皆為僅收聽模式。簡報結束後，我們將進行問答環節（接線員指示）。本通話於 2024 年 8 月 8 日（星期四）錄音。

I would now like to turn the call over to Chelsea Forrest, Vice President of Investor Relations. Please go ahead.

現在我想把電話交給投資人關係副總裁 Chelsea Forrest。請開始。

Good morning, and thank you for joining Armada Hoffler second-quarter 2024 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, President and COO.

各位早安，感謝您參加 Armada Hoffler 2024 年第二季財報電話會議與網路直播。今天早上與我一同出席的還有執行長 Lou Haddad、財務長 Matthew Barnes-Smith，以及總裁兼營運長 Shawn Tibbetts。

The press release announcing our second quarter earnings along with our supplemental package were distributed yesterday afternoon. A replay of this call will be available shortly after the conclusion of the call through September 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 here and are as of today, August 8, 2024, and will not be updated subsequent to the initial earnings call.

我們公布第二季財報的新聞稿以及補充資料包已於昨天下午發出。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 9 月 8 日。重播的撥入號碼已載於財報新聞稿中。對於收聽本次簡報重播的聽眾，我們提醒您：本次發言係截至今日（2024 年 8 月 8 日）之內容，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 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、開發案儲備（pipeline）、收購與處分的影響、夾層融資計畫（mezzanine program）、營建業務、流動性狀況、投資組合表現與融資活動，以及對我們的指引與展望之評論等相關陳述。

Listeners are cautioned that any forward-looking statements are based upon management's beliefs, assumptions, and expectations taken 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.

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。這些信念、假設與預期可能因潛在事件或因素而改變，其中並非全部為已知，且多數難以預測，通常亦非我們所能控制。

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 yesterday afternoon and the risk factors disclosed in documents, 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的預期出現重大差異；我們建議聽眾查閱我們昨天下午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所揭露的風險因素。

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

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

I'll now turn the call over to Lou.

接下來我把電話交給 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 produce robust operating metrics. Tenant demand for our space is at an all-time high, and rents have never been better. These results, combined with a couple of one-time items, produce significant outperformance for the period.

謝謝你，Chelsea。各位早安，感謝今天加入我們。如各位從我們的財報新聞稿所見，Armada Hoffler 本季再度交出強勁表現。我們持續看到投資組合展現穩健的營運指標。租戶對我們空間的需求創下歷史新高，租金表現也前所未見。這些成果再加上幾項一次性項目，使本期表現顯著優於預期。

We now anticipate the year ending with earnings at the high end of our prior guidance. Before Shawn and Matt delve into the specifics of this quarter's performance, I'll take a minute to update you on our succession plan.

我們目前預期全年獲利將落在先前指引區間的高端。在 Shawn 與 Matt 深入說明本季表現細節之前，我先花一點時間向各位更新我們的接班計畫。

As expected, our Founder and Chairman, Dan Hoffler, retired last quarter. He remains active on our Board. I have now assumed the role of Chairman and will perform the dual role until early next year, when the Board expects to appoint Shawn as CEO.

如預期所示，我們的創辦人兼董事長 Dan Hoffler 已於上季退休。他仍持續在董事會中積極參與。我現已接任董事長一職，並將兼任此雙重職務至明年初，屆時董事會預期將任命 Shawn 擔任執行長。

At that time, I will remain active as Executive Chair. Shawn continues to exceed my highest expectations, just as he has for the last five years. He has already assumed many of my duties and built a core team with several members from within the organization to lead the execution of our strategic vision for the company in the coming years. I could not be more enthusiastic for the future of Armada Hoffler.

屆時我將以執行董事長（Executive Chair）的身分持續積極參與。Shawn 持續超出我最高的期待，正如他過去五年來一貫的表現。他已承擔我許多職責，並在組織內部建立核心團隊，成員多來自公司內部，以在未來幾年帶領公司落實我們的策略願景。我對 Armada Hoffler 的未來感到無比振奮。

I'll now turn the call over to Matt to highlight some of our quarterly metrics before Shawn delivers the business update.

接下來我把電話交給 Matt，由他先重點說明一些季度指標，之後再由 Shawn 進行業務更新。

Good morning, and thank you, Lou. Once again, the team has produced another strong quarter of financial results in line with prior guidance. For the second quarter of 2024, we reported FFO of $0.25 per diluted share and normalized FFO of $0.34 per diluted share in line with our expectations.

各位早安，謝謝你，Lou。再次地，團隊本季再度交出強勁的財務成果，並符合先前指引。2024 年第二季，我們每股稀釋後 FFO 為 0.25 美元，每股稀釋後標準化 FFO 為 0.34 美元，符合我們的預期。

The variance between FFO and normalized FFO can be attributed to the change in fair market value of our derivatives and the write-off of accumulated developments and other pursuit costs. This non-cash write-off and subsequent accounting treatment resulted in a one-time reduction of the taxable liability for our TRS and associated increase in earnings for this quarter by $1.5 million. We expect this one-time event, coupled with a tenant termination fee that will be recorded next quarter to guide us to the top end of our earnings range.

FFO 與標準化 FFO 之間的差異，主要可歸因於我們衍生性金融工具公允價值的變動，以及累積開發案與其他追案成本的沖銷。此項非現金沖銷及後續會計處理，導致我們的應稅 REIT 子公司（TRS）之稅負一次性降低，並使本季盈餘增加 150 萬美元。我們預期此一次性事件，加上將於下季入帳的租戶解約費（tenant termination fee），將引導我們達到獲利區間的高端。

Each of our operating segments produced a robust performance this quarter, maintaining 95% occupancy across the portfolio. The construction division posted $4.3 million of gross profit, the highest quarter in Armada Hoffler's construction management history. This feature is unique to our business model, as we believe that Armada Hoffler is the only publicly traded US REIT to benefit from a meaningful third-party fee-based construction business, as well as to internally build to our own portfolio.

本季我們各營運部門皆展現強勁表現，使整體投資組合維持 95% 的出租率。營建事業部錄得 430 萬美元毛利，為 Armada Hoffler 營建管理歷史上最高的單季表現。此一特點為我們商業模式所獨有；我們相信 Armada Hoffler 是唯一一家公開上市的美國 REIT，能同時受益於具規模的第三方、以費用為基礎的營建業務，並能為自有投資組合進行內部建造。

Looking specifically at the portfolio performance, all three segments posted positive re-leasing spreads. The retail segment achieved a 5.8% GAAP spread with the office segment achieving a 24.3% GAAP spread. These results were 2.9% and 4.4% on a cash basis, respectively. Our multifamily portfolio reported a combined trade-out spread of 2% for the quarter, accelerating to 3.4% for the month of July.

就投資組合表現而言，三大部門皆呈現正向的續租價差（re-leasing spreads）。零售部門達成 5.8% 的 GAAP 價差，辦公部門則達成 24.3% 的 GAAP 價差。以現金基礎計算，兩者分別為 2.9% 與 4.4%。我們的多戶住宅投資組合本季合計換租價差（trade-out spread）為 2%，並於 7 月加速至 3.4%。

We have seen significant improvement in new lease trade-outs increasing from negative 4.8% in the fourth quarter of 2023 to essentially flat in the second quarter of 2024, turning positive in July at 2.3%. Renewal spreads on apartment leases remain strong at 4.3% for the second quarter, improving to 4.4% for the month of July. All these metrics demonstrate our performance of our peer set, the value of high-quality assets, and the strength of our sub-markets.

我們看到新租換租價差顯著改善，從 2023 年第四季的負 4.8% 提升至 2024 年第二季幾乎持平，並於 7 月轉正至 2.3%。公寓續約價差仍維持強勁，第二季為 4.3%，7 月進一步提升至 4.4%。上述各項指標皆展現我們相較同業的表現、高品質資產的價值，以及我們次級市場（sub-markets）的強勁動能。

Our portfolio same-store NOI growth was positive at 0.6% on a GAAP basis and 1.8% on a cash basis. The office segment was the standout performer this quarter, posting 9% GAAP and 7.7% cash same-store growth. We believe this performance is unmatched in the REIT sector and once again indicating that even in a challenging market, high-quality assets in great locations remain full and in high demand. Shawn will cover the leasing components of these metrics later on the call.

我們投資組合同店（same-store）NOI 成長為正：以 GAAP 基礎為 0.6%，以現金基礎為 1.8%。辦公部門為本季最突出的表現者，同店成長以 GAAP 計為 9%，以現金計為 7.7%。我們相信此表現於 REIT 產業中無可匹敵，並再次顯示即使在具挑戰的市場中，位於優越地段的高品質資產仍能維持滿租且需求旺盛。Shawn 將在稍後通話中說明這些指標中的租賃相關內容。

On the balance sheet side, we executed on $85 million worth of term loans this quarter, paying down more expensive debt and continuing our balance sheet transition. This will not affect total leverage as we exchange debt one for one.

在資產負債表方面，我們本季完成了總額 8,500 萬美元的定期貸款，償還成本較高的債務，並持續推進我們的資產負債表轉型。由於我們以一換一的方式置換債務，這不會影響總槓桿。

We intend to maintain our investment grade credit rating and we'll continue to monitor the market for opportunities to execute on accretive balance sheet transactions. We also opportunistically issued approximately $9 million on the ATM through early July as we took advantage of the wider market rotation into rate-sensitive sectors and the especially strong bid for REITs.

我們打算維持投資等級的信用評等，並將持續關注市場，尋找可執行具增益性的資產負債表交易機會。此外，我們也把握時機透過 ATM 於 7 月上旬前發行約 900 萬美元，因我們利用了更廣泛市場輪動至利率敏感型產業，以及市場對 REITs 特別強勁的買盤。

I will now pass the call over to Shawn.

我現在把電話會議交給 Shawn。

Thank you, Matt, and thank you, Lou, for your confidence in my ability to lead our company into the future. Additionally, we appreciate all of you for joining us to review the impressive results that our team was able to produce during the Q2. I will walk through the high-level components and add color to the material Matt has just reviewed.

謝謝你，Matt，也謝謝你，Lou，對我帶領公司邁向未來的能力抱持信心。另外，也感謝各位加入我們，一同回顧我們團隊在第二季所交出的亮眼成果。我將概述高層次的組成要素，並就 Matt 剛剛回顧的重點補充說明。

We presented the components underpinning our 2024 guidance during the first quarter call, suggesting a range of $1.21 to $1.27. Given the earnings outperformance this quarter, I will reiterate my comments made last call regarding the front-loaded nature of our earnings this year.

我們在第一季電話會議中已說明支撐 2024 年指引的各項組成，並提出每股 1.21 至 1.27 美元的區間。鑑於本季盈餘表現超出預期，我將重申我在上次電話會議中關於今年盈餘「前高後低」特性的評論。

If you recall my remarks, the combination of higher construction profit in the first half of the year, the reduction of interest income as a result of our partners selling Solace City Park and the carry cost of Southern Post and Allied Harbor Point through stabilization materially contribute to the lumpiness of earnings over the four quarters.

如果各位還記得我的說明，上半年較高的建造利潤、因合作夥伴出售 Solace City Park 而導致利息收入下降，以及 Southern Post 與 Allied Harbor Point 在達到穩定營運前的持有成本，這些因素的組合，對四個季度間盈餘的波動性有實質影響。

However, we do expect to hit the high end of the range due to strong performance and a couple of one-time items. In terms of operating performance, occupancy across the portfolio is 95%, slightly ahead of the Q1. The combination of high occupancy and NOI consistent with the previous quarter demonstrates our strong leasing and operating execution across the portfolio.

不過，基於強勁表現以及幾項一次性因素，我們預期可達到區間上緣。就營運表現而言，整體投資組合入住率為 95%，略高於第一季。高入住率與與前一季一致的 NOI（淨營運收入）相結合，顯示我們在整體投資組合的租賃與營運執行力強勁。

Our assets are strategically positioned in attractive markets and the properties are typically the newest and best located in the respective submarket. Our properties and communities feature top-tier amenities that attract investment-grade tenants who consistently choose them over competitors in the market.

我們的資產策略性地布局於具吸引力的市場，且物業通常是各自子市場中最新、位置最佳的標的。我們的物業與社區具備一流的設施配套，吸引投資等級租戶，並使其在市場中持續選擇我們而非競爭對手。

Let's spend some time walking through our fundamentals across the sectors. In our retail and office properties, value creation is realized through consistent leasing activity, re-leasing space, and increasing rents.

接下來我們花點時間檢視各業態的基本面。在零售與辦公物業方面，價值創造來自持續的租賃活動、重新出租空間，以及提高租金。

In addition to the daily management of over 700 tenants, we executed 32 commercial leases for a total of approximately 250,000 square feet. Our commercial renewal spreads were 10.8% on a GAAP basis. While maintaining an overall commercial occupancy of 95% through the second quarter. Our Trophy Office product continues to demonstrate strength as evidenced by our market-leading statistics.

除了日常管理超過 700 位租戶外，我們也簽訂了 32 份商用租約，總面積約 25 萬平方英尺。我們的商用續租租金價差（spread）在 GAAP 基礎下為 10.8%。同時在第二季維持整體商用入住率 95%。我們的頂級（Trophy）辦公產品持續展現強勁動能，從我們領先市場的統計數據即可見一斑。

The office portfolio achieved an occupancy of 94.3%, a slight increase from the 93.6% last quarter and well above the high end of the peer set. In addition, the aforementioned properties achieved a 9% same-store NOI and 24.3% positive renewal spread on a GAAP basis. These are primarily driven by our best-in-class Town Center assets.

辦公投資組合入住率達 94.3%，較上季的 93.6% 小幅提升，且明顯高於同業組合的高端水準。此外，上述物業在同店 NOI 方面達 9%，且在 GAAP 基礎下續租租金價差為正 24.3%。這主要由我們同級最佳的 Town Center 資產所帶動。

Additionally, our office expirations are minimal for the next few years. Coupled with our high-credit tenants, we expect to outperform the peer set for the foreseeable future by a very wide margin and the results speak for themselves. This level of success is attributable to the combination of location, amenities, design, and recent vintage.

另外，未來幾年我們的辦公租約到期量很少。再加上我們的高信用等級租戶，我們預期在可預見的未來將以非常大的幅度優於同業組合，而結果也不言自明。這樣的成功歸因於地點、設施、設計與較新屋齡等因素的綜合。

As a result of these attributes, our office product remains in high demand and highly occupied with rents at the high end of the respective sub markets. Our office properties are in a class of themselves in each market.

因此，我們的辦公產品仍維持高度需求與高入住率，租金亦位於各自子市場的高端水準。我們的辦公物業在各個市場都自成一格。

In addition to the location, quality and amenities, 95% of our office, ABR is located in mixed use ecosystems like Town Center of Virginia Beach and Harbor Point. At Harbor Point, we executed a new 35,000 square foot lease with Stifel and delivered another 46,000 square feet of expansion space to Morgan Stanley.

除了地點、品質與設施外，我們辦公的 ABR（年化基礎租金）有 95% 位於 Town Center of Virginia Beach 與 Harbor Point 等複合式使用生態系中。在 Harbor Point，我們與 Stifel 簽訂了一份新的 35,000 平方英尺租約，並向 Morgan Stanley 交付了另外 46,000 平方英尺的擴充空間。

Harbor Point is now firmly entrenched as the destination of choice for financial services. The area is becoming more activated every day and we will see this continue to accelerate when thousands of -- price employees are on site. We are witnessing a pronounced flight to quality within the market and Harbor Point is the beneficiary.

Harbor Point 現已穩固成為金融服務業首選目的地。該區域每天都更加活絡，當數千名 T. Rowe Price 員工進駐現場後，我們將看到這一趨勢持續加速。我們正見證市場中明顯的「向高品質遷移」，而 Harbor Point 正是受益者。

We recognize the challenges present in major office markets and what other landlords are experiencing, but it is simply not the case at our Armada Hoffler. And in fact, the opposite is true. The first office tenant has already taken occupancy at Southern Post and our anchor tenant, Vestas, will move in and open for business in the fall. These assets remain positioned to attract top tier tenants, who prioritize the premium real estate spaces that we are able to create in mixed use communities.

我們理解主要辦公市場面臨的挑戰以及其他房東所經歷的情況，但在我們 Armada Hoffler 並非如此。事實上，情況正好相反。Southern Post 的第一位辦公租戶已經進駐，而我們的主力租戶 Vestas 將於秋季搬入並開始營運。這些資產仍具備吸引一流租戶的定位；這些租戶重視我們在複合式使用社區中所能打造的高端不動產空間。

In the retail segment, we have executed new leases, including additions to our mixed use communities like strong regional concepts, South Moon under and Josefina. Our proactive leasing strategy has resulted in a positive lease renewal rate of 6% on a GAAP basis, ensuring a stable revenue stream. We believe that proactive tenant relationship management is key to maximizing NOIs and property values.

在零售業態方面，我們已簽訂新租約，包括在我們的複合式使用社區中引進強勢的區域品牌概念，如 South Moon Under 與 Josefina。我們主動的租賃策略使租約續租率在 GAAP 基礎下達到正 6%，確保穩定的收入來源。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。

In the multi-family sector, robust performance was driven by strong sub-market demand. Our multifamily properties achieved an average occupancy of 94.9% this quarter and demonstrated a strong 4.3% lease renewal spread.

在多戶住宅（multifamily）業態方面，強勁表現主要由子市場需求旺盛所帶動。我們的多戶住宅物業本季平均入住率達 94.9%，並展現強勁的 4.3% 續租租金價差。

I will now spend a few moments highlighting the portfolio expansion in our mixed-use ecosystems, Southern Post and Harbor Point. Our development and construction teams remain on target to deliver the three projects in the pipeline throughout the remainder of the year. We look forward to 2025 and beyond as they lease and begin to positively contribute to the NOI growth.

接下來我將用幾分鐘重點說明我們在複合式使用生態系 Southern Post 與 Harbor Point 的投資組合擴張。我們的開發與施工團隊仍按計畫推進，預計在今年剩餘期間交付管線中的三個專案。我們期待 2025 年及之後，隨著其出租並開始對 NOI 成長做出正面貢獻。

Southern Post located in Roswell, Georgia integrates retail, multifamily, and office while underscoring our commitment to enhancing community driven high-quality developments. We are now 71% leased in the commercial space at rents running ahead of pro forma levels.

位於喬治亞州 Roswell 的 Southern Post 整合了零售、多戶住宅與辦公，並凸顯我們致力於提升以社區為導向之高品質開發案的承諾。目前我們的商用空間出租率已達 71%，租金水準高於預估（pro forma）。

Tenants will continue opening their doors through the fall and we are excited to unveil several prominent brands and local businesses adding a diverse mix of shopping and dining options that will enhance the projects appeal.

租戶將持續在秋季期間陸續開幕；我們也很期待揭曉多個知名品牌與在地商家，帶來多元的購物與餐飲選擇，進一步提升專案吸引力。

The multifamily component Chandler Residences is also progressing well with 43% of the units currently leased. We expect this momentum to continue given the limited supply of high-quality product in the sub-market.

多戶住宅部分 Chandler Residences 也進展順利，目前已有 43% 的單位完成出租。鑑於該子市場高品質產品供給有限，我們預期這股動能將持續。

Southern Post reinforces our reputation as a leader in creating high-quality integrated communities. It strengthens our presence in the Southeast region and showcases our ability to deliver complex mixed use projects that meet evolving market demands. The T Rowe Price Global Headquarters at Harbor Point is wrapping up and we anticipate a move in later this year. This trophy built-to-suit project is well situated among our assets on the peninsula and will bring thousands of additional professional workers to the site.

Southern Post 強化了我們作為打造高品質整合型社區領導者的聲譽。它提升了我們在美國東南部地區的布局，並展現我們交付符合市場需求演變之複雜複合式使用專案的能力。位於 Harbor Point 的 T. Rowe Price 全球總部工程已接近完工，我們預期將於今年稍晚進駐。這個頂級的量身訂做（built-to-suit）專案坐落於半島上我們的資產群之間，將為該據點帶來數千名額外的專業工作者。

Our Allied Harbor Point project is also progressing well with pre-leasing kicked off in July. This 312 unit high-rise apartment building sits at the top of the market and its approximately 1,200 space parking garage component complements the T Rowe Price project. Its waterfront views and amenities are virtually Baltimore's best and we look forward to this property complementing our other trophy assets at Harbor Point. As mentioned in the previous quarter, our partner was contemplating a sale of one of the deals in our real estate financing portfolio at a mid-5% cap rate.

我們的 Allied Harbor Point 專案也進展順利，並已於 7 月啟動預租。這棟 312 戶的高層公寓大樓位於市場高端，其約 1,200 個車位的停車場組成部分與 T Rowe Price 專案相互補強。其濱水景觀與設施幾乎可稱巴爾的摩最佳，我們也期待該資產能與我們在 Harbor Point 的其他旗艦級資產相得益彰。如同前一季所提及，我們的合作夥伴曾考慮以約 5% 中段的資本化率（cap rate）出售我們不動產融資投資組合中的其中一筆交易。

In early July, they successfully executed on the sale of a pre stabilized apartment project, Solace City Park in the expected mid-5% cap range. This market data point confirms our business thesis in several ways. They have since returned the principal and accrued interest to us at an annual return on invested capital of over 8%. We will deploy some of the capital into a very attractive multifamily deal located in a high growth Southeast market with the same partner.

7 月初，他們成功以預期約 5% 中段的資本化率區間，完成出售一個尚未完全穩定（pre-stabilized）的公寓專案 Solace City Park。這個市場數據點以多種方式印證了我們的商業論點。此後，他們已將本金與應計利息返還給我們，使投入資本的年化報酬率超過 8%。我們將把部分資金投入與同一合作夥伴在美國東南部一個高成長市場中的一筆極具吸引力的多戶住宅（multifamily）交易。

Our construction business continues to produce record profits. While working through the $300 million current backlog, the second quarter yielded results consistent with the targeted projections included in our original 2024 guidance. The partner firms using our construction expertise continue to identify and execute on opportunities that allow us to demonstrate our capabilities and collect market data for our internal underwriting of future opportunities.

我們的營造業務持續創下紀錄性獲利。在消化目前 3 億美元的在手訂單（backlog）之際，第二季的成果與我們原先 2024 年財測指引中所納入的目標預估一致。採用我們施工專業的合作夥伴公司，持續辨識並執行各項機會，使我們得以展現能力，並為內部承作未來機會的審核（underwriting）蒐集市場數據。

Our diversified portfolio continues to perform well, with each asset class contributing positively to the company's financial results. We remain committed to leveraging expertise to optimize the portfolio, drive growth and deliver long term value to shareholders.

我們的多元化投資組合持續表現良好，各資產類別皆對公司的財務成果做出正面貢獻。我們仍致力於運用專業能力來最佳化投資組合、推動成長，並為股東創造長期價值。

Operator, we are ready for the question-and-answer session.

接線員，我們已準備好進入問答環節。

Thank you so much, presenters, ladies and gentlemen, we will now begin the question-and-answer session (Operator Instructions)

非常感謝各位簡報人員。各位女士先生，我們現在開始問答環節。(接線員指示)

Rob Stevenson, Strand.

Rob Stevenson，Strand。

Shawn or Lou, development pipeline is essentially complete here. I can't remember you guys not having something under construction in almost 10 years I've covered you. Are there any projects that are penciling right now given demand and your cost of capital?

Shawn 或 Lou，開發管線在這裡基本上已經完成了。在我追蹤你們的將近 10 年裡，我幾乎不記得你們有哪段時間沒有專案在施工中。在目前需求與你們資金成本的情況下，現在有任何專案在財務上算得過來（penciling）嗎？

Good morning, Rob. Thanks for the question. We are not finding what we believe pencils. Obviously, cap rates have moved, interest rates have moved, the economic backdrop is frankly moving all over the place and we're not seeing anything that attracts us to pull the trigger or even begin intense underwriting given the environment. So we're always on the lookout obviously, but no sir, we are not seeing something that is causing us to be tempted to move at this time.

早安，Rob。謝謝你的問題。我們目前沒有找到我們認為在財務上算得過來的案子。顯然，資本化率已變動、利率也已變動，整體經濟背景坦白說變化很大，在這樣的環境下，我們沒有看到任何足以吸引我們扣下扳機，甚至開始進行密集承作審核的機會。所以我們當然一直在留意，但沒有，先生，我們目前沒有看到任何讓我們此刻想要出手的案子。

What about on the redevelopment side beyond Columbus Village two and Virginia Beach?

那在改建（redevelopment）方面，除了 Columbus Village 二期和 Virginia Beach 之外呢？

Yes, I think things like that make sense, especially when we're looking at the basis we have in the land. We are working on as you know a redevelopment opportunity there, but it's rather small at the end of the day. We're talking 10 million, 15 million, not wholesale massive development. So we think that works, that type of thing, especially given the kind of attractive tenants that we're looking at, but we're not looking at any major redevelopments as we sit here today for the same reasons.

是的，我認為像那樣的案子是合理的，特別是當我們看的是我們在土地上的成本基礎（basis）。如你所知，我們正在那裡推進一個改建機會，但說到底規模相當小。我們談的是 1,000 萬到 1,500 萬美元，不是那種全面性、超大型的開發。因此我們認為那樣可行，尤其考量到我們正在鎖定的那類具吸引力的租戶；但基於同樣原因，截至今天我們並未在評估任何重大的改建案。

Okay. And then Matt, so $0.62 here to date, the guidance is $1.23 to $1.27 and loose and you're trending towards the high end. So $0.61 to $0.65 in the back half. You've got the WeWork drag and I think you've also got some drag here from capitalized interest as the Baltimore and Southern Post deliver here. How should we be thinking about the cadence in the back half. Is the second quarter likely to be the sort of high point for the year? Did I understand correctly, the $1.5 million TRS benefit, that's a third-quarter impact, not a second-quarter?

好的。然後 Matt，截至目前是 0.62 美元，指引是 1.23 到 1.27 美元，而且你們看起來正朝區間上緣走。所以後半年大概是 0.61 到 0.65 美元。你們有 WeWork 的拖累，我想隨著巴爾的摩與 Southern Post 交付，資本化利息也會帶來一些拖累。我們應該如何看待後半年的節奏？第二季是否可能是今年的高點？我理解正確嗎：那 150 萬美元的 TRS 受益，是第三季的影響，而不是第二季？

Hi, good morning. Good morning, Rob. Yes, the $1.5 million, $1.6 million positive tax impact is a Q2, second-quarter impact. We believe or we know there's going to be a termination fee that will be a third-quarter impact to the positive Y-o-Y, but you are correct.

嗨，早安。早安，Rob。是的，150 萬到 160 萬美元的正向稅務影響是在 Q2，也就是第二季的影響。我們認為、或者我們知道，會有一筆終止費（termination fee）在第三季反映，對年增（Y-o-Y）帶來正向影響；但你說得沒錯。

The second quarter will, we believe, be the kind of highest quarter that we're looking at this year. The two areas, and you rightly pointed out that the first one, interest expense will increase into the back half of the year, as these developments come online and we no longer capitalize the interest through the lease-up period of these developments.

我們認為第二季將會是今年我們所看到的相對高的一季。你也正確指出兩個面向：第一，隨著這些開發案陸續上線，且在其招租（lease-up）期間不再資本化利息，利息費用將在後半年增加。

And the second part of that is the construction gross profit. As we said on previous calls, was heavy in the first half of the year. We still anticipate guiding to the midpoint of our construction gross profit range, $13.7 million-ish, which would show that it's coming down in the second or the third quarter and fourth quarter this year.

第二個部分是營造毛利。如同我們在先前的電話會議所說，上半年占比較重。我們仍預期指引會落在營造毛利區間的中點，約 1,370 萬美元左右，這也意味著今年第二季之後，第三季與第四季會往下走。

Okay. And then last one for me, some other REITs have reopened their previously issued preferred stock series and raising some capital that way. Is that something that you guys have been thinking about given that the preferred is still under 10% of the capitalization or is 7% or wherever it is today about where you want it and that cost of capital isn't attractive for you these days?

好的。最後一個問題：有些其他 REIT 已重新開放先前發行的特別股系列，並透過那種方式籌資。考量到特別股仍低於資本結構的 10%（大概 7% 或目前的水位），你們是否也在思考這件事？還是說目前的比重已接近你們想要的水準，而這些日子的資金成本對你們而言並不具吸引力？

Rob, I think that's a great question. And obviously the economic backdrop has changed dramatically since our last update. Volatility is certainly unsettling and the subsequent movement to like the slower growth, lower interest environment enables us to contemplate additional avenues, strengthen our balance sheet.

Rob，我認為這是個很好的問題。而且顯然，自我們上次更新以來，整體經濟背景已出現劇烈變化。波動性確實令人不安，而隨後市場轉向較慢成長、較低利率的環境，使我們得以思考更多途徑來強化資產負債表。

But as we sit here today, we are not ready to make any of those type of calls on this Thursday morning. But at the end of the day, we're looking at it all. I think it's a great question. Frankly, a great idea, but I can tell you that it's not top a mind as we sit here in the room this morning.

但就我們今天此刻而言，我們還沒準備好在這個週四早上做出那類決定。不過說到底，我們都在評估。我認為這是個很好的問題。坦白說也是個好主意，但我可以告訴你，今天早上在這個會議室裡，它並不是我們最優先在想的事情。

Peter Dylan Abramowitz, Jefferies.

Peter Dylan Abramowitz，Jefferies。

Thank you very much. So you touched on at a high level on some of the items impacting the bridge from FFO this quarter to kind of get, like you said, to sort of the top end of the range for the rest of the year. I guess, if we just step back and think about it, you kind of have some unexpected items that are tailwinds through the termination fee in the third quarter and the tax benefit in the second quarter. I know you kind of kept all the ranges the same as they were last quarter and that's how you sort of get to the high end.

非常感謝。你們在較高層次上提到了一些影響本季 FFO 橋接、並如你所說使全年其餘期間走向區間上緣的項目。我想，如果我們退一步來看，你們有一些非預期項目形成順風，包括第三季的終止費以及第二季的稅務受益。我知道你們把所有區間都維持在與上季相同的水準，而這也是你們如何走到上緣的方式。

But if we just think about kind of swing factors within the portfolio or elsewhere in the business, like what would make you comfortable because I think I was maybe a little bit surprised that if you have some of these unexpected tailwinds and not see a little bit of a raise.

但如果我們只從投資組合內或業務其他部分的一些波動因素來看，哪些情況會讓你覺得比較安心？因為我可能有點意外的是，如果你有一些這類意外的利多，卻沒有看到指引稍微上調。

Peter, thank you for the question. Good morning. I think as we look at our opportunities in the future, we are constantly trying to accelerate lease up of these developments. And as Matt mentioned, the kind of interest or carry cost of those less than stabilized developments, obviously we're still constructing part of them. We think conservative approach is to show that drag and to represent that drag and kind of holding the range as it is.

Peter，謝謝你的提問。早安。我想當我們展望未來的機會時，我們一直在努力加速這些開發案的出租進度（lease-up）。而如同Matt提到的，那些尚未穩定（stabilized）的開發案所產生的利息或持有成本（carry cost），很明顯我們其中一部分仍在施工。我們認為採取保守作法，是把這個拖累（drag）呈現出來、反映出來，並將區間維持在目前的水準。

I think, if we saw tailwinds, they would be in faster lease-up of some or part of those developments and I don't think as we sit here today again given the economic backdrop that we can come out with certainty and move that range within good faith. Certainly, we're working to that end. But as we sit here today, we think that's the prudent kind of message to send to the street.

我想如果出現利多，會來自於這些開發案中部分或全部更快完成出租，但就我們今天坐在這裡、考量整體經濟背景，我不認為我們能夠在善意（good faith）的前提下有把握地調整那個區間。當然，我們正朝這個方向努力。但以今天的情況來看，我們認為這是對市場（the street）傳達較為審慎的訊息。

That's helpful. Thanks, Shawn. And then on the leasing spreads, they were particularly strong in office. I think you called out Town Center as driving a lot of that. Any specific deals that kind of stood out in there? And I guess is that sort of indicative of where the market is in Virginia Beach or overall in your portfolio?

這很有幫助。謝謝，Shawn。另外關於租賃價差（leasing spreads），辦公室的表現特別強。我想你提到Town Center帶動了很大一部分。裡面有沒有什麼特別突出的具體交易？以及我想問，這是否反映了維吉尼亞海灘（Virginia Beach）的市場狀況，或是你們整體投資組合的狀況？

I would say Virginia Beach was strong. We had some fairly good sized leases here at Virginia Beach. I'll just share with you on the retail side that was a nice lease. We're able to get a good deal on that. The comment was really specific to the Town Center office which showed some good kind of growth in that rent. Some renewals here at Town Center in the building that we're sitting in, some long-time tenants and we're able to negotiate some nice deals with them.

我會說維吉尼亞海灘很強。我們在維吉尼亞海灘這裡簽了幾筆規模相當不錯的租約。我也跟你分享一下零售端，那是一筆不錯的租約。我們能談到很好的條件。我剛剛的評論其實是特別針對Town Center的辦公室，顯示租金有不錯的成長。在Town Center、也就是我們現在所在的這棟大樓，有一些續租，是長期租戶，我們也能與他們談到一些很不錯的條件。

But yes, I think this goes back to our story which is this mixed-use ecosystem is driving demand and that demand allows us to kind of command a little higher price than the competition because frankly the competition is in a different league when compared to either Town Center or Harbor Point and soon to be Southern Post.

但沒錯，我認為這回到我們的故事：這個複合式用途（mixed-use）的生態系正在帶動需求，而這個需求讓我們能夠相較競爭對手收取略高的價格，因為坦白說，無論是Town Center、Harbor Point，或是即將推出的Southern Post，競爭對手與我們相比根本不在同一個層級。

So, again, this is our thesis and we're proud of it. We want to leverage it where we can and it seems that people are willing to pay for that kind of highest-quality trophy asset setting and that's what gets into those spreads.

所以，再次強調，這就是我們的投資論點（thesis），我們也以此為傲。我們希望在可行之處加以運用，而看起來人們願意為那種最高品質的地標級（trophy asset）資產環境付費，這也就是租賃價差的來源。

Got it. And then you mentioned I think a mid-5%cap rate on the multifamily asset that's getting sold that you have a structured finance investment in. Just curious, do you think that's indicative of the market overall and where cap rates are? I think we've seen there was a large private equity deal that was closer to like a 4% going in, which was surprisingly low to us, but just trying to square your comments against that large transaction, sort of where you think the market's at today.

了解。另外你提到，你們有一筆結構性融資投資（structured finance investment）所涉及、正在出售的多戶住宅（multifamily）資產，其資本化率（cap rate）大約在5%中段。我想請教，你覺得這是否代表整體市場、以及目前cap rate所在的位置？我想我們看到有一筆大型私募股權交易，進場（going in）大概接近4%，對我們來說低得有點意外；只是想把你的評論和那筆大型交易對照一下，看看你認為今天市場大概在哪裡。

In fairness, I think we need to distil down what point in time we, so as we always try to do, we put out the stabilized kind of cap rate at 5.5%. The going in was less than five. And this is a strong Charlotte market. You hear a lot of commentary about the markets overbuilt, so on and so forth. We are after all in the real estate game long and Charlotte has great growth fundamentals.

公平地說，我想我們需要釐清我們指的是哪個時間點；因此如同我們一貫的做法，我們公布的是穩定後（stabilized）的cap rate為5.5%。進場收益率（going in）則低於5%。而這是夏洛特（Charlotte）一個強勁的市場。你會聽到很多評論說市場供給過剩等等。畢竟我們長期都在做房地產，而夏洛特的成長基本面非常好。

So I think, my comment to that would be, yes, I think the market is probably healthier than people give it credit for, number one. Number two, to trade at a stabilized yield in the mid fives, probably sub-five in terms of going in yield, as we said here today, when the transaction happened a few weeks back. I think that demonstrates strength in these growth markets.

所以我對此的回應是：第一，我認為市場可能比大家給它的評價更健康。第二，以穩定後收益率在5%中段成交、進場收益率可能低於5%，正如我們今天所說、而且交易是在幾週前發生的，我認為這展現了這些成長型市場的強勁。

Again, I'm not saying that there's not supply coming online, but I think if we think about it long, that supply in our mind is pretty quickly absorbed in these high growth markets throughout the kind of Southeast and South Atlantic.

再次強調，我不是說沒有新供給正在進入市場，但如果我們拉長時間來看，在我們看來，這些供給在東南部與南大西洋一帶的高成長市場中，會很快被吸收。

Got it. So that 5.5 is more like a year two, year three number rather than going into year one?

了解。所以那個5.5%比較像是第二年、第三年的數字，而不是第一年進場的數字？

Yes, I would say out in stabilization, 24, 36 months, whenever they kind of hit that stabilization period, but that's in the future.

是的，我會說是在達到穩定狀態之後，大約24到36個月，或是他們進入那個穩定期的時點；但那是在未來。

Thank you so much. And we don't have any further questions at this time. I would now like to turn the call to Sean Tibbetts for closing remarks.

非常感謝。我們目前沒有其他問題。我現在想把電話會議交給Sean Tibbetts做結語。

Thank you very much. I want to start by saying thank you to our talented team, our dedicated team, got strong DNA in this company, we continue to leverage that alongside the culture to create shareholder values. So just want to say again, thank you for you all joining us here today.

非常感謝。我想先向我們優秀的團隊、投入的團隊致謝；這家公司有很強的DNA，我們持續結合企業文化加以發揮，以創造股東價值。所以再次感謝各位今天加入我們。

We appreciate you working alongside us to understand our story. I do know there's a lot going on in the market, so I know your time is valuable as you sit here and listen to our story. There's a lot of work to be done as the markets move out there, but we appreciate you.

我們感謝你們與我們一起努力理解我們的故事。我也知道市場上有很多事情正在發生，所以我知道當你坐在這裡聆聽我們的分享時，你的時間非常寶貴。隨著市場變化，還有很多工作要做，但我們很感謝你們。

Just know we are here to continue to provide that value back to the shareholder. We come in with a mission to do that every morning, and we're looking forward to continuing to drive this company onward and upward. And again, thank you for your time.

請相信我們會持續為股東提供回饋價值。我們每天早上都帶著這個使命開始工作，也期待持續推動公司向前、向上。再次感謝你們的時間。

Thank you, presenters, and thank you, ladies and gentlemen. This concludes today's conference call. Thank you for your participation. And you may now disconnect. You have a great day.

謝謝各位簡報人員，也謝謝各位女士先生。今天的電話會議到此結束。感謝各位的參與。各位現在可以掛線。祝各位有美好的一天。