Apartment Income REIT Corp (AIRC) 2023 Q4 法說會逐字稿

Welcome, and thank you for attending today's AIR Communities Third Quarter 2023 Earnings Conference Call. My name is [Tridhi], and I will be your moderator for today's call. (Operator Instructions) I would now like to pass the conference over to Lisa Cohn, President and General Counsel of AIR Communities. You may proceed.

歡迎並感謝您參加今天的 AIR 社群 2023 年第三季財報電話會議。我的名字是 [Tridhi]，我將擔任今天電話會議的主持人。 （操作員指示）我現在想將會議交給 AIR Communities 總裁兼總法律顧問 Lisa Cohn。您可以繼續。

Thank you, and good day. My name is Lisa Cohn, and I am President and General Counsel of AIR Communities. During this conference call, the forward-looking statements we make are based on management's judgment, including projections related to our 2024 expectations. These statements are subject to certain risks and uncertainties, a description of which can be found in our SEC filings. Actual results may differ materially from what may be discussed today. We will also discuss certain non-GAAP financial measures, such as FFO and AFFO. These are defined and are reconciled to the most comparable GAAP measures in the supplemental information that is part of the full earnings release published on AIR's website.

謝謝你，美好的一天。我叫 Lisa Cohn，是 AIR Communities 的總裁兼總法律顧問。在本次電話會議中，我們所做的前瞻性陳述是基於管理階層的判斷，包括與我們 2024 年預期相關的預測。這些聲明存在一定的風險和不確定性，相關描述可以在我們向 SEC 提交的文件中找到。實際結果可能與今天討論的結果大不相同。我們也將討論某些非 GAAP 財務指標，例如 FFO 和 AFFO。這些是在補充資料中定義的，並與最具可比性的 GAAP 衡量標準進行了協調，補充資訊是 AIR 網站上發布的完整收益報告的一部分。

Comments today come from Terry Considine, our CEO; Keith Kimmel, President of Property Operations; Josh Minix, our Chief Investment Officer; and Paul Beldin, our CFO. Other members of management are also present and all of us will be available during the Q&A session, which will follow our prepared remarks.

今天的評論來自我們的執行長 Terry Considine； Keith Kimmel，物業營運總裁； Josh Minix，我們的首席投資長；和我們的財務長保羅貝爾丁。其他管理層成員也出席了，我們所有人都將參加問答環節，問答環節將在我們準備好的發言之後進行。

I will now turn the call to Terry Considine. Terry?

我現在將電話轉給特里·康斯丁。特里？

Good morning. And thank you, Lisa, and all of you on this call. I read the first takes this morning and last night and set aside my prepared remarks to address what I understand to be on your minds. There's considerable consensus on AIR's good operations. There's confusion about $0.07 of the increase in 2024 expected interest expense. $0.04 was the result of the third quarter refinancing fully disclosed in our third quarter report.

早安.謝謝麗莎和參加本次電話會議的所有人。我今天早上和昨晚讀了第一遍，並把我準備好的言論放在一邊，以解決我所理解的你們的想法。人們對 AIR 的良好運作達成了相當多的共識。 2024 年預期利息支出增加 0.07 美元，這一點令人困惑。 0.04 美元是我們第三季報告中充分揭露的第三季再融資的結果。

It reflects the acceleration by a year or so of the difference between legacy interest rates and then current market rates. This will occur in every REIT balance sheet as debts reprice. $0.01 reflects the impact of fourth quarter share repurchases funded by borrowing at a somewhat higher interest rate than in the third quarter and was considered in our underwriting. $0.02 reflects a $50 million increase in expected 2024 borrowings to fund accretive property upgrades.

它反映了傳統利率與當前市場利率之間的差異加速了一年左右。當債務重新定價時，這將發生在每個房地產投資信託基金的資產負債表中。 0.01 美元反映了第四季度股票回購的影響，該股票回購的資金來源是利率略高於第三季度的借款，並且已在我們的承銷中予以考慮。 0.02 美元反映出預計 2024 年借款將增加 5,000 萬美元，為增值的房地產升級提供資金。

We have underwritten past and future investments at substantial accretive spreads to our cost of capital. The higher interest expense in 2024 is the price paid for a higher quality portfolio with faster free cash flow growth in '24, but more importantly, in 2025 and later. There is some suggestion that leverage increases variability and lower leverage would reduce same.

我們以顯著增加資本成本的利差承保了過去和未來的投資。 2024 年較高的利息支出是為 24 年（但更重要的是 2025 年及以後）自由現金流成長更快的更高品質投資組合所付出的代價。有人建議，槓桿會增加波動性，而較低的槓桿則會減少波動性。

Financial leverage does introduce exposure to changing interest rates. This was especially pronounced last year, when for example, the 10-year fluctuated from 3.25% to 5% and back to 4%. With even the highest rates are well below the returns on AIR investment. The bigger point is the use of the borrowed proceeds to upgrade the AIR portfolio and create shareholder value. We are focused on the long-term values of a better portfolio with higher earning power and look past the short-term noise of interest rate changes.

財務槓桿確實會帶來利率變動的風險。去年這一點尤其明顯，例如，10 年期公債利率從 3.25% 波動到 5%，然後又回到 4%。即使是最高的利率也遠低於 AIR 投資的回報。更重要的一點是利用借來的收益來升級 AIR 投資組合併創造股東價值。我們專注於具有更高獲利能力的更好投資組合的長期價值，並忽略利率變化的短期噪音。

Any discussion of leverage needs to consider risk. AIR leverage at 30% loan to value, to stabilize properties is safe. Comparison to others needs to consider the stability of stabilized properties as owned by AIR with the risk of other business models with development risk, the implicit financial leverage of unfunded completion costs and the risk of second mortgage lending where the much higher leverage from senior debt is off balance sheet, but remains real. There were some concerns about paired trades with minor year 1 FFO and free cash flow impacts.

任何關於槓桿的討論都需要考慮風險。 AIR槓桿為貸款價值的30%，穩定房產是安全的。與其他公司相比，需要考慮AIR 擁有的穩定財產的穩定性以及其他具有開發風險的商業模式的風險、無資金支持的竣工成本的隱性財務槓桿以及二次抵押貸款的風險，其中高級債務的槓桿率要高得多。資產負債表外，但仍然真實。人們對第一年 FFO 和自由現金流影響較小的配對交易存在一些擔憂。

To state the concern is to answer it. We're comfortable with the relatively minor year 1 noise, if we see considerable long-term value creation. We are confident that 2023's paired trades will outearn their cost of capital. There were some similar concerns about the complexity of joint ventures. The complexity is addressed by transparency, as, for example, shown in Schedule IIb, which provides a clear path from gap to economics.

表達擔憂就是回答它。如果我們看到可觀的長期價值創造，我們對第一年相對較小的噪音感到滿意。我們相信 2023 年的配對交易將超過其資本成本。對於合資企業的複雜性也存在一些類似的擔憂。透明度可以解決複雜性問題，例如附表 IIb 所示，它提供了從差距到經濟學的清晰路徑。

It fails to consider the benefits to shareholders, which we saw in 2023 and anticipated 2024, including the opportunity to upgrade our portfolio by the sale of partial interest in an otherwise a liquid market and the opportunity to reinvest the proceeds in other properties, often at discounts to their construction costs with higher free cash flow growth rates, all while others are sidelined.

它沒有考慮到我們在2023 年看到並預計在2024 年為股東帶來的好處，包括透過出售流動市場的部分權益來升級我們的投資組合的機會，以及將收益再投資於其他房產的機會，通常以隨著自由現金流增長率的提高，他們的建築成本會得到折扣，而其他人則被邊緣化。

The long-term benefits to portfolio construction are real and predictable. The creation of additional service income lowers AIR's already low G&A. A corollary benefit to stock investors might be the reassurance that the most sophisticated global real estate investors chose and choose to co-invest alongside AIR. There was some discussion of nonrecurring income. It's just that nonrecurring, is cash and needs to be reported. It was exaggerated in 2022 when we accelerated the termination of continuing agreements between AIR and Aimco, declined considerably in 2023. AIR's focus on long-term free cash flow will naturally reduce nonrecurring income. But when it's available, shareholders will be better off if we take it, disclosing as we do, that it's nonrecurring.

投資組合建構的長期效益是真實且可預測的。額外服務收入的創造降低了 AIR 本來就很低的一般管理費用。對股票投資者來說，一個必然的好處可能是讓最成熟的全球房地產投資者選擇與 AIR 共同投資。對非經常性收入進行了一些討論。只是非經常性的，是現金，需要報告。 2022年我們加速終止AIR和Aimco之間的持續協議時被誇大了，2023年大幅下降。AIR對長期自由現金流的關注自然會減少非經常性收入。但當它可用時，如果我們接受它並披露它是非經常性的，股東的狀況將會更好。

Finally, forecast for 2024 are just that forecast. AIR has taken a conservative view to guidance of 2024 market rental rate growth. We also provided a range of guidance that shows a possible and substantial upside. Time will tell where results land. I encourage you to keep score at the end of the year, not at its beginning.

最後， 2024 年的預測就是這樣的預測。 AIR 對 2024 年市場租金成長指引持保守看法。我們也提供了一系列指導意見，顯示了可能的且實質的好處。時間會告訴我們結果會落在哪裡。我鼓勵你在年底而不是年初記分。

My bottom line. Given the consensus on the performance of AIR operations and the continuing increases in the quality of the AIR portfolio and its growth rate, it seems likely that AIR shareholders at herein will own an enterprise whose value will have increased considerably.

我的底線。鑑於對 AIR 營運績效的共識以及 AIR 投資組合品質及其成長率的持續提高，AIR 股東很可能將擁有一家價值將大幅成長的企業。

Given that our diversified portfolio is largely insulated from today's surge in new supply, I expect that our results will compare favorably to ours in 2023 and appears in 2024. The expected value creation will be the work of a stable and cohesive team and the advice and oversight of engaged Board of Directors. I thank both for their friendship and help.

鑑於我們的多元化投資組合在很大程度上不受當今新增供應激增的影響，我預計我們的業績將優於2023 年並出現在2024 年。預期的價值創造將是穩定且有凝聚力的團隊的工作以及建議和建議的結果。對參與的董事會進行監督。我感謝他們的友誼和幫助。

With that, I'd like to turn the call to Keith Kimmel. Keith?

說到這裡，我想把電話轉給基斯·金梅爾。基思？

Thanks, Terry, I'm pleased to report we wrapped up with good 2023 with a solid fourth quarter. More importantly, AIR is well positioned to begin 2024, and what we see as another good year ahead. Fourth quarter results met our expectations and were reflective of typical seasonality.

謝謝特里，我很高興地向大家報告，我們以穩健的第四季結束了美好的 2023 年。更重要的是，AIR 已準備好迎接 2024 年，我們認為未來又是美好的一年。第四季的業績符合我們的預期，並反映了典型的季節性。

AIR continues to benefit from Josh's good work, building a portfolio with broad diversification of markets and limited exposure to new supply. Revenue was up 6.2% with occupancy of 97.3%, up 200 basis points from the third quarter, signed new leases were down 1.1% from the prior lease as we push to build occupancy and pricing power.

AIR 繼續受益於 Josh 的出色工作，建立了市場廣泛多元化且新供應有限的投資組合。營收成長 6.2%，入住率達 97.3%，比第三季上升 200 個基點，隨著我們努力提高入住率和定價能力，簽署的新租約比之前的租約下降 1.1%。

Renewals were up 4.7%. Expenses increased 30 basis points and net operating income increased 8.1%. The AIR Edge continues to drive outperformance. With full year controllable operating expenses up only 20 basis points, in part due to AIR's best ever retention of 62.3%.

續訂量增加了 4.7%。費用增加 30 個基點，營業淨收入增加 8.1%。 AIR Edge 繼續推動卓越性能。全年可控營運費用僅成長 20 個基點，部分原因是 AIR 創下了 62.3% 的歷史最佳保留率。

AIR's operating margin also reached an all-time high, up 76.7% up 130 basis points from the fourth quarter of 2022. The AIR Edge also generates above-market performance in our acquisition portfolio. In the fourth quarter, our classes of 2021 and 2022 and net operating income growth, 300 basis points better than our same-store portfolio. And in particular, benefited from the efficiencies of AIR's operating model and technology stack with expenses down 4.5% from last year.

AIR 的營運利潤率也達到歷史最高水平，較 2022 年第四季成長 76.7%，提高 130 個基點。AIR Edge 在我們的收購組合中也產生了高於市場的業績。第四季度，我們2021年和2022年的班級和淨營業收入成長，比我們的同店投資組合好300個基點。尤其受益於 AIR 營運模式和技術堆疊的效率，費用比去年下降了 4.5%。

Our class of 2021 now owned for just over 2 years and has undergone a remarkable transformation. Compared to the fourth quarter of 2021, revenue was up 25%. Controllable expenses have decreased 21%. Net operating income is up 34%. Margins at these communities have expanded over 500 basis points from 68.6% at acquisition to 73.8% today.

我們2021屆的畢業生現在擁有了兩年多的時間，並且已經經歷了顯著的轉變。與 2021 年第四季相比，營收成長了 25%。可控制費用減少了21%。營業淨收入成長 34%。這些社區的利潤率已從收購時的 68.6% 擴大到如今的 73.8%，增幅超過 500 個基點。

Our class of 2022 acquisitions now entering same-store are expected to have net operating income growth this year, approximately twice that of the balance of the portfolio. At Southgate, owned now for 1 year, the rent roll has increased 14% from day 1 and we've had net operating income growth of 23% from the seller's prior year. The combination of above-market revenue growth and predictable expense savings from the AIR platform creates a reliable engine for repeatable growth.

我們目前進入同店的 2022 年收購類別預計今年的淨營業收入成長，約為投資組合餘額成長的兩倍。 Southgate 現已擁有 1 年，租金從第一天起增加了 14%，我們的淨營業收入比賣家上一年增長了 23%。 AIR 平台將高於市場的收入成長與可預測的費用節省相結合，為可重複成長創造了可靠的引擎。

January results have strengthened from the fourth quarter and we are well positioned to start the year. Occupancy continues to be strong at 97.7%. Our high occupancy brings pricing power with new leases up 1.8%, renewals up 5.6% and signed blended lease-to-lease of 3.8%. Asking rents have increased 80 basis points year-to-date and leasing volume has grown sequentially each week as we see the first green shoots of the spring leasing season. We anticipate the balance of 2024 will reflect a typical pre-pandemic year with strong demand, supply pressures, but only in pockets, waning inflation and a premium placed on sales and operational excellence.

一月份的業績較第四季有所增強，我們已做好了迎接新一年的準備。入住率繼續保持在 97.7% 的強勁水平。我們的高入住率帶來了定價能力，新租約增加了 1.8%，續約成長了 5.6%，簽訂的混合租賃成長了 3.8%。今年迄今為止，租金要價已增加 80 個基點，租賃量每週都在連續增長，因為我們看到了春季租賃季節的第一批綠芽。我們預計 2024 年將是典型的疫情前一年，需求強勁，供應壓力大，但僅限於口袋，通貨膨脹減弱，銷售和卓越營運受到重視。

Our anticipated 2024 revenue growth of 3.8% is based on 2.4% of earn-in from our 2023 leasing activity and current pricing, 40 basis points of growth in occupancy, 10 basis points improvement from bad debt, 50 basis points contribution from community upgrades and [asking] rates they grow another 1% between now and peak season, resulting in a blended lease-to-lease of 3.5% in 2024.

我們預計 2024 年營收成長 3.8%，基於 2023 年租賃活動和目前定價的 2.4% 收益、入住率成長 40 個基點、壞帳改善 10 個基點、社區升級貢獻 50 個基點以及從現在到旺季，[要價]利率又成長了1%，導致2024 年混合租賃利率達到3.5%。

We anticipate positive growth across all markets with the South Florida, Austin, Washington D.C. and San Diego expected to be our strongest markets, while the Bay Area continues to lag in revenue growth, though we remain optimistic for a strong recovery.

我們預計所有市場都將出現積極成長，其中南佛羅裡達州、奧斯汀、華盛頓特區和聖地牙哥預計將成為我們最強勁的市場，而灣區的營收成長將繼續落後，但我們對強勁復甦仍持樂觀態度。

My thanks to all our team members for a great year. Your dedication to serving our residents, innovative approach to our business, and consistent drive for results made 2023 one of AIR's best years. I look forward to the year ahead.

我感謝我們所有團隊成員度過了美好的一年。你們對服務居民的奉獻精神、創新的業務方法以及對成果的不懈追求，使 2023 年成為 AIR 最好的一年之一。我期待著新的一年。

I'll now turn the call over to Joshua Minix, our Chief Investment Officer, Josh?

我現在將電話轉給我們的首席投資官約書亞·米尼克斯 (Joshua Minix)，喬什？

Thank you, Keith. In 2023, we grew our AIR Edge portfolio with 4 acquisitions, 1 located in Miami Beach, Florida, 1 in Bethesda, Maryland and 2 in Raleigh-Durham, North Carolina, where we added a third this year. The acquisitions were funded in a leverage-neutral manner by 2 new joint ventures, the 2023 sale of our last New York City properties, the issuance of both operating partnership units and the assumption of below-market fixed rate debt.

謝謝你，基斯。 2023 年，我們透過4 項收購擴大了AIR Edge 產品組合，其中1 項位於佛羅裡達州邁阿密海灘，1 項位於馬裡蘭州貝塞斯達，2 項位於北卡羅來納州羅利-達勒姆，今年我們又在那裡增加了第三項收購。這些收購以槓桿中性的方式透過兩家新合資企業、2023 年出售我們最後的紐約市房產、發行兩個營運合夥單位以及承擔低於市場的固定利率債務來提供資金。

We did not have any transaction closings in the fourth quarter that we remain focused on improving the portfolio and expanding our AIR Edge allocation. In 2023, the acquisition classes of '21 and '22 were 13% of our portfolio and accounted for 22% of our growth. The '23 and '24 acquisitions expand our AIR Edge allocation to 20% of the portfolio, which bodes well for future portfolio NOI growth.

我們在第四季沒有完成任何交易，我們仍然專注於改善投資組合和擴大 AIR Edge 分配。 2023 年，「21」和「22」收購類別占我們投資組合的 13%，占我們成長的 22%。 '23 和 '24 的收購將我們的 AIR Edge 分配擴大到投資組合的 20%，這預示著未來投資組合 NOI 的成長。

In 2024, we continue our work to improve the portfolio quality and growth through transaction activity that allocates capital to AIR Edge properties. The class of '22 joins the same store for '24. We expect to execute transactions in '24 to replace and expand that AIR Edge allocation. We are off to a great start in close Sunnybrook in Raleigh, North Carolina this quarter.

2024 年，我們將繼續致力於透過向 AIR Edge 物業分配資本的交易活動來提高投資組合品質和成長。 '22 年級的學生在 24 年級加入同一家商店。我們預計在 24 年執行交易以取代和擴展 AIR Edge 分配。本季度，我們在北卡羅來納州羅利市桑尼布魯克附近取得了良好的開端。

To fund these acquisitions, we expect to sell property either outright or in JVs to maintain a leverage-neutral position. Our investment philosophy remains the same. We focus on generating a positive spread to our cost of capital and on improving portfolio quality, leveraging our great advantage created by Keith and his team to apply the AIR Edge to generate outsized returns as newly acquired assets benefit from his expertise.

為了為這些收購提供資金，我們預計將直接或以合資方式出售財產，以維持槓桿中性立場。我們的投資理念維持不變。我們專注於產生積極的資本成本利差並提高投資組合質量，利用 Keith 及其團隊創造的巨大優勢，應用 AIR Edge 來產生巨額回報，因為新收購的資產受益於他的專業知識。

With that, I'll turn the call over to Paul Beldin, our Chief Financial Officer. Paul?

接下來，我將電話轉給我們的財務長 Paul Beldin。保羅？

Thank you, Josh. Today, I will discuss AIR's strong and flexible balance sheet, full year 2023 results, our expectations for 2024 and conclude with a brief comment on our dividend. The AIR balance sheet is well positioned. It is investment grade, long in duration, fixed rate, 2/3 nonrecourse, and about 30% loan to value, low leverage when you consider our business is focused on stabilized properties and has no exposure to new construction or mezzanine loans or short-term rentals.

謝謝你，喬許。今天，我將討論 AIR 強大而靈活的資產負債表、2023 年全年業績、我們對 2024 年的預期，並簡要評論我們的股息。 AIR 的資產負債表狀況良好。它是投資等級，期限長，固定利率，2/3 無追索權，貸款價值比約為30%，當您認為我們的業務專注於穩定的房地產並且沒有接觸新建或夾層貸款或短期貸款時，槓桿率較低。定期租金。

We have abundant liquidity with just under $2 billion available, sufficient to refinance substantially all maturing debt through 2027. Fourth quarter leveraged EBITDA was 1/10 of a turn above our expectations, a result of opportunistic fourth quarter share repurchases. I was comfortable ending the year about $45 million above our leverage expectation due to the strength of the balance sheet, anticipated 2024 EBITDA growth that absent changes in leverage is anticipated to be sufficient to reduce leverage by 1/2 a turn and the accretive use of proceeds.

我們擁有充足的流動性，可用資金接近20 億美元，足以為2027 年之前的所有到期債務進行再融資。第四季度的槓桿EBITDA 比我們的預期高出1/10，這是第四季度機會性股票回購的結果。由於資產負債表的實力、預計 2024 年 EBITDA 的成長（如果槓桿率沒有變化）預計足以將槓桿率每輪減少 1/2，以及增加使用收益。

The share repurchases are part of a balanced capital allocation program. In the past 2 years, we have used approximately 25% of our available capital to repurchase 8% of the company at a discount to NAV. To the extent AIR shares continue to trade at a significant discount in NAV, we anticipate that we will continue to allocate a portion of any proceeds raised to repurchase additional shares in a leverage-neutral manner. To support us in this activity our Board of Directors granted a new $500 million authorization. As we look to grow the company, we have excellent access to dry powder to fund future acquisitions through our Evergreen joint ventures with 2 large global investors.

股票回購是平衡資本配置計畫的一部分。在過去的兩年裡，我們用大約25%的可用資本以低於資產淨值的折扣回購了公司8%的股份。如果 AIR 股票繼續以資產淨值大幅折扣進行交易，我們預計我們將繼續將籌集的資金的一部分用於以槓桿中性方式回購額外股票。為了支持我們的這項活動，我們的董事會授予了 5 億美元的新授權。當我們希望發展公司時，我們有很好的機會獲得乾粉，透過我們與兩家大型全球投資者的常青合資企業為未來的收購提供資金。

Turning to full year results. Pro forma FFO equaled the midpoint of guidance at $2.41 per share. Run rate FFO, which excludes costs or income that are not anticipated to recur in future periods was $2.36 per share, equal to the midpoint of our expectations and up 7.8% from 2022 and up 20% cumulatively since 2021. Run rate AFFO was $2.09 per share, up 7.7% from 2022 and up 23% cumulatively since 2021. Looking forward, we anticipate that free cash flow and AFFO will grow at a faster rate than NOI and run rate FFO respectively.

轉向全年業績。預計 FFO 等於每股 2.41 美元的指導中點。運行率FFO（不包括預計未來不會重複發生的成本或收入）為每股2.36 美元，等於我們預期的中點，較2022 年增長7.8%，自2021 年以來累計增長20%。運行率AFFO 為每股2.09 美元份額，較 2022 年增長 7.7%，自 2021 年以來累計增長 23%。展望未來，我們預計自由現金流和 AFFO 的增長速度將分別快於 NOI 和運行率 FFO。

As we look forward to 2024, we expect 2024 run rate AFFO per share at the midpoint will be $2.12, up 1.4% from 2023. We expect run rate FFO to be $2.38, up 80 basis points from '23. We expect this growth at the midpoint to be the result of $0.11 per share of incremental contribution from the same-store portfolio driven by NOI growth of 3.8%, result of 3.8% revenue growth previously discussed by Keith. Expense growth of 3.8% comprised of controllable operating expense growth of approximately 120 basis points, elevated above AIR's 13-year trend of negative growth but about half of the expected CPI.

展望 2024 年，我們預計 2024 年每股 AFFO 運行利率中點將為 2.12 美元，較 2023 年上升 1.4%。我們預計 FFO 運行利率為 2.38 美元，較 23 年上升 80 個基點。我們預期中點的成長是由於 NOI 成長 3.8% 所驅動的同店投資組合每股 0.11 美元的增量貢獻的結果，這是 Keith 之前討論的 3.8% 收入成長的結果。費用成長 3.8%，其中可控營運費用成長約 120 個基點，高於 AIR 13 年負成長趨勢，但約為預期 CPI 的一半。

Real estate taxes are expected to increase between 5% and 8%. 2024 is a particularly difficult year to forecast with 2 contrasting forces at play. Real Estate values declined by approximately 30% during the past 2 years, a result of rising interest rates. While this provides a positive argument when challenging assessments, it is mitigated by continued healthy NOI growth. While the exact growth rate is subject to some uncertainty, I do know for certain that we'll be very active in appealing all assessments.

房地產稅預計將增加5%至8%。 2024 年是預測特別困難的一年，有兩種截然不同的力量在發揮作用。由於利率上升，過去 2 年房地產價值下降了約 30%。雖然這在質疑評估時提供了積極的論據，但 NOI 的持續健康成長卻削弱了這一點。雖然確切的成長率存在一些不確定性，但我確實知道我們將非常積極地呼籲所有評估。

Insurance expenses are also difficult to predict. Despite minimal losses being tendered to our carriers during the past decade, our property and casualty insurance costs for like properties increased by approximately 30% in 2023. In 2024, I anticipate a significantly lower rate of growth, the amount of which I'll be able to address more specifically after our March 1 renewal.

保險費用也很難預測。儘管在過去十年中我們的承運人承擔的損失很小，但我們同類財產的財產和傷亡保險成本在 2023 年增加了約 30%。到 2024 年，我預計增長率將顯著降低，我將能夠在3 月1 日續訂後更具體地解決。

Outside of our same-store portfolio, we anticipate 2023 paired trades to result in a $0.01 of NOI dilution, but be $0.01 accretive to free cash flow. Please don't, this calculation compares to the NOI loss from properties sold in 2023, to the properties acquired with their proceeds, including the January acquisition of Sunnybrook. It also includes the benefit from share repurchases. The paired trades are anticipated to be accretive to NOI later this year.

在我們的同店投資組合之外，我們預計 2023 年配對交易將導致 NOI 稀釋 0.01 美元，但自由現金流增加 0.01 美元。請不要，此計算將 2023 年出售的房產的 NOI 損失與用其收益購買的房產（包括 1 月份收購 Sunnybrook）進行比較。它還包括股票回購的收益。預計配對交易將在今年稍後增加 NOI。

We also anticipate interest expense to increase by $0.07 or approximately $11 million year-over-year. I understand that the increase in interest expense was little more confusing than I anticipated, so let me spend a moment diving into the details. $0.04 of the increase is due to higher weighted average interest rates. In 2023, our weighted average interest cost increased from approximately 4.1% at the beginning of the year to 4.3% at the end of the year. As a result, and all else held equal, the effective interest rates are expected to be 21 basis points higher than 2024. The increase was a result of our third quarter refinancing activity, which extended duration but marked our debt to current rates of market interest, accelerating interest expense that would have otherwise occurred in future periods.

我們也預計利息支出將年增 0.07 美元，約 1,100 萬美元。我知道利息支出的增加比我預期的要混亂一些，所以讓我花點時間深入了解細節。增加 0.04 美元是由於加權平均利率較高。 2023年，我們的加權平均利息成本從年初的約4.1%上升至年底的4.3%。因此，在其他條件相同的情況下，實際利率預計將比2024 年高出21 個基點。這一增長是我們第三季再融資活動的結果，該活動延長了期限，但將我們的債務標記為當前市場利率，加速本應在未來期間發生的利息支出。

Economically, the acceleration either harmed nor benefited AIR as the swap acceleration income which is excluded from run rate FFO offsets the higher interest cost. In order to appropriately reflect 2023 interest expense, we bifurcated the swap acceleration income including the amounts that were attributable to 2023, which we include as an offset to '23 interest expense and allocated the remainder of the swap income, which was otherwise to be earned in 2024 and 2025 through other income and therefore, excluded from run rate FFO.

從經濟角度來看，這種加速對 AIR 既不利又有利，因為不計入運行利率 FFO 的掉期加速收入抵消了較高的利息成本。為了正確反映2023 年的利息支出，我們將掉期加速收入一分為二，包括歸屬於2023 年的金額，我們將其作為23 年利息支出的抵消，並分配了本應賺取的掉期收入的剩餘部分2024 年和 2025 年將透過其他收入實現，因此不包括在 FFO 運行率中。

The result was to lower fourth quarter interest expense by $2.3 million. For those of you that are annualizing our fourth quarter interest expense as a proxy for 2024 interest expense, you would need to increase our reported $33 million by the $2.3 million. This results in an annualized expense of $141.2 million.

結果是第四季利息支出減少了 230 萬美元。對於那些將第四季度利息支出年化為 2024 年利息支出的代理的人來說，您需要將我們報告的 3300 萬美元增加 230 萬美元。這導致年化費用為 1.412 億美元。

There are then 2 other adjustments necessary to fourth quarter interest expense to arrive at $147 million guide for '24. First, our average effective interest rate increased by 5 basis points during the fourth quarter due to the changes in the mix of our debt driven by increased levels of borrowings. Applying this increase to our 12/31 debt balance, increases 2024 interest expense by additional $1.6 million or $0.01.

然後，還需要對第四季度利息支出進行兩次其他調整，以達到 24 年 1.47 億美元的指導值。首先，由於借款水準增加導致債務結構發生變化，第四季度我們的平均實際利率上升了5個基點。將此增加應用於我們的 12/31 債務餘額，2024 年利息支出將額外增加 160 萬美元或 0.01 美元。

Second, we anticipate $50 million of incremental borrowings to fund property upgrades and other improvements whose ROI is included in our guidance. In impact to interest expense after consideration of any capitalized interest is approximately $3 million or $0.02.

其次，我們預計將增加 5000 萬美元的借款，用於資助房產升級和其他改進，這些改進的投資回報率已包含在我們的指導中。考慮到任何資本化利息後，對利息支出的影響約為 300 萬美元或 0.02 美元。

Few other quick notes on guidance. First, run rate FFO at the midpoint of $2.38 per share is $0.02 above the 2023 run rate FFO of $0.03 per share below our 2023 pro forma results, which included $0.05 of net earnings that are anticipated to be nonrecurring.

很少有其他關於指導的快速說明。首先，每股 2.38 美元的運行利率 FFO 比 2023 年運行利率 FFO 每股 0.03 美元低 0.02 美元，比我們 2023 年預計業績低 0.03 美元，其中包括預計非經常性淨利潤 0.05 美元。

Second, third-party service income is anticipated to be about $0.11 per share, 6 of which is anticipated to be earned through the execution of our currently in-place property and asset management agreements. The remaining $0.05 will be earned from short duration service income, an amount that is similar to that achieved in 2022 and 2023.

其次，第三方服務收入預計約為每股 0.11 美元，其中 6 預計將透過執行我們目前已簽訂的財產和資產管理協議獲得。剩餘的 0.05 美元將從短期服務收入中獲得，該金額與 2022 年和 2023 年實現的金額類似。

Third, as our guidance indicates, we anticipate being active in the transaction market through paired trades and in partnership with our joint venture partners. However, given our synergies surrounding the cost of capital, volume of transactions, operating plans and timing, we're not providing additional guidance on the impact of these activities to 2024 results.

第三，正如我們的指引所示，我們預期透過配對交易以及與合資夥伴的合作，活躍於交易市場。然而，考慮到我們圍繞資本成本、交易量、營運計劃和時間表的協同效應，我們不會就這些活動對 2024 年業績的影響提供額外指導。

Fourth, quarterly leveraged EBITDA will likely fluctuate during the year based on the timing of transactions and changes in EBITDA that is anticipated in 2024 at approximately 6:1.

第四，季度槓桿 EBITDA 可能會在年內根據交易時間和 EBITDA 變化而波動，預計 2024 年約為 6:1。

Finally, the AIR Board of Directors declared a quarterly cash dividend of $0.45 per share. On an annualized basis, the dividend reflects a yield total of 5.7% based on the current share price.

最後，AIR 董事會宣布季度現金股利為每股 0.45 美元。以年化計算，股息反映的收益率總計為基於當前股價的 5.7%。

With that, we will now open the call for questions. Please limit your questions to 2 (inaudible)

現在，我們將開始提問。請將您的問題限制為 2 個（聽不清楚）

Operator, I'll turn it over to you for the first question.

接線員，第一個問題就交給你了。

(Operator Instructions) And your first question comes from the line of Eric Wolfe from Citi.

（操作員說明）您的第一個問題來自花旗銀行的埃里克·沃爾夫（Eric Wolfe）。

You mentioned that the $0.04 increase was due to your 3Q refinancing activity. I was just wondering if you could give sort of more detail on exactly what that was? What were the amounts? Where did the rates go to and from? And just kind of like how you get to that sort of $6 million extra increase in interest expense. I'm just backing to that from the $0.04.

您提到 0.04 美元的成長是由於您的第三季再融資活動造成的。我只是想知道你能否提供更多細節來說明那到底是什麼？金額是多少？費率從哪裡來？就像利息支出額外增加 600 萬美元一樣。我只是支持 0.04 美元。

Yes, Eric, this is Paul. And there'll be 2 ways I'd direct you to, to look at that. As the first, and probably the quickest and easiest way would be to compare the weighted average interest rate as disclosed in Schedule 5 for the first and second quarters to our weighted average interest rate in the fourth quarter. If you do that, you'll see an increase of about 20 basis points. If you apply that 20 basis points to our debt balance at year-end, you get about $6.5 million to $7 million. And that's the $0.04.

是的，艾瑞克，這是保羅。我會引導你透過兩種方式來看這個問題。第一種，也可能是最快、最簡單的方法是將附表 5 中揭露的第一季和第二季的加權平均利率與第四季的加權平均利率進行比較。如果您這樣做，您將看到大約 20 個基點的增長。如果將這 20 個基點應用於我們年底的債務餘額，您將獲得約 650 萬至 700 萬美元。這就是 0.04 美元。

Sure. I guess I'm asking, but what drove that increase. Meaning like what drove the 20 basis increase. It sounds like it's something you did in the third quarter. So what was it in the third quarter that drove that 20 basis point increase.

當然。我想我是在問，但是是什麼推動了這種成長。意思是推動 20 個基點上漲的因素。聽起來這是你在第三季所做的事情。那麼第三季是什麼推動了 20 個基點的成長呢？

Yes. There were 2 items. We refinance to extend duration of $325 million of term loans that were otherwise coming due in 2024 and 2025 before consideration of extension options and refinanced that $325 million with 5-year and 7-year debt that had an average interest rate of about 5.5%, 5.4%. The effective rate on that debt previously was about 4%, 4.1%.

是的。有 2 項。我們進行再融資以延長3.25 億美元的定期貸款期限，這些貸款在考慮延期選擇之前將於2024 年和2025 年到期，並以5 年期和7 年期債務再融資3.25 億美元，平均利率約為5.5%， 5.4%。此前該債務的實際利率約為 4%、4.1%。

The second thing we did in one of our joint venture transactions, our joint venture partner, assumed debt and so that reduced -- that was at a lower-than-market rate of interest, which we were paid for in the transaction. But if you just focus solely on the impact to average interest rates, the result of removing that lower cost debt inflated the balance of the portfolio.

我們在合資企業交易中做的第二件事是，我們的合資夥伴承擔了債務，從而減少了債務——利率低於市場利率，我們在交易中獲得了報酬。但如果你只專注於對平均利率的影響，消除低成本債務的結果會導致投資組合的餘額膨脹。

Okay. And then just last question. Your 1Q guidance bridge didn't show sort of any impact from the higher interest expense. Now is this something that ends up kicking in later in the year, second quarter through the fourth quarter? Just trying to understand because it seems like there's -- I understand the offsetting adjustment you made in 2023, but I would think that it would just go to a more normal level in the first quarter of 2024.

好的。然後是最後一個問題。您的第一季指導橋樑沒有顯示出較高利息支出的任何影響。現在這是否會在今年晚些時候，第二季到第四季開始出現？只是想了解一下，因為我了解您在 2023 年所做的抵銷調整，但我認為它會在 2024 年第一季達到更正常的水平。

Eric, that's a good question. The reason you don't see it top in our bridge walking 4Q results to the first quarter results is that you probably noted in the Supplemental Schedule 5, we talked about fixing our interest rates on our revolver and also adjusting our hedges to better match the maturities of our term loans. And the net effect of that was to give us a little bit of a pop of about $0.01, $0.015 or so in the first quarter. So that's why we're consistent on a 4Q versus 1Q basis, and you'll see the increase then in Q2 and beyond.

艾瑞克，這是個好問題。您在我們的第四季度業績到第一季業績的橋樑中看不到它的原因是您可能在補充附表5 中註意到，我們討論了固定左輪手槍的利率，並調整我們的對沖以更好地匹配我們的定期貸款的到期日。其淨效應是在第一季為我們帶來了約 0.01 美元、0.015 美元左右的小幅成長。這就是為什麼我們在第四季度與第一季的基礎上保持一致，並且您會看到第二季及以後的成長。

And your next question comes from the line of John Kim from BMO Capital Markets.

您的下一個問題來自 BMO 資本市場的 John Kim。

One of the takeaways from last quarter was the recent acquisitions that you've had, once it's on your platform, it would be growing significantly faster than the rest of your same-store pool. So I wanted to focus on your class of 2022 portfolio as well as other real estate. The class of 2022, the growth slowed considerably since the last quarter. I realize that some -- it's only 4 assets. There's probably some volatility in that, but -- can you just comment on that slowdown and what you're expecting for the remainder of the year?

上個季度的收穫之一是您最近的收購，一旦進入您的平台，它的成長速度將明顯快於同店池中的其他產品。所以我想專注於你們 2022 年的投資組合以及其他房地產。 2022年畢業生的成長自上季以來大幅放緩。我意識到有些──只有 4 項資產。其中可能存在一些波動，但是——您能否評論一下經濟放緩以及您對今年剩餘時間的預期？

John, I'll start and see if Keith wants to add anything. Specifically on Class of '22, what you're seeing is the impact of a tax revaluation that was -- that occurred in the fourth quarter of 2023. And so that's, that incremental tax expense is what's driving the slowdown in NOI growth. Keith, anything you'd add on the revenue side.

約翰，我先看看基斯是否想補充什麼。特別是對於 22 屆畢業生，您看到的是 2023 年第四季度發生的稅收重估的影響。因此，增量稅收支出是推動 NOI 成長放緩的原因。基思，您在收入方面添加的任何內容。

I think the other thing that I would just point to, John, is that -- we basically -- we can see that the NOI growth of the Class of '22 is going to be about double that what we're seeing in our same-store portfolio as we look forward. So it's a combination of things in the early days of that transition, we are repopulating our residents in some degree, repositioning how we staff the communities, and a whole series of different things that we go through. And there could be some volatility in those early parts of the year or for about a year or so, and then we start getting into the stabilization of the AIR Edge taking hold.

約翰，我想我要指出的另一件事是，我們基本上可以看到，22 屆畢業生的 NOI 增長將是我們在同一屆畢業生中看到的兩倍左右。- 我們期待的商店組合。因此，在過渡初期，這是多種因素的結合，我們正在某種程度上重新安置我們的居民，重新定位我們為社區配備人員的方式，以及我們經歷的一系列不同的事情。今年早些時候或大約一年左右的時間可能會出現一些波動，然後我們開始進入 AIR Edge 的穩定階段。

And can you remind us what's in the other real estate bucket at those 4 assets? And if you see double-digit growth from this group.

您能否提醒我們這 4 項資產的其他房地產類別中有哪些？如果你看到這個群體出現兩位數的成長。

John, the 4 assets that are included on the real estate are the 4 properties that we held a leasehold interest in it, the separation from Aimco and Aimco completed their redevelopment and upon completion of that redevelopment work, we bought out the value of the improvements. And so that occurred in the summer of 2022. And so that those assets will be included in our same-store pool in 2024. As far as the expected growth rate relative to the same-store population as a whole, we'd anticipate growth rate in that portfolio to be fairly similar to the legacy same-store population because Keith and his great team were involved with the lease-up and have been operating those properties from day 1.

約翰，房地產中包含的 4 項資產是我們持有租賃權益的 4 項房產，與 Aimco 分離，Aimco 完成了重建工作，重建工作完成後，我們買下了改進的價值。這發生在 2022 年夏天。這些資產將在 2024 年納入我們的同店池。就相對於整體同店人口的預期增長率而言，我們預計增長該投資組合中的比率與傳統同店人口相當相似，因為基思和他的優秀團隊參與了租賃，並從第一天起就一直在經營這些物業。

Okay. Great. My second question is on -- is for Terry. On your opening remarks, you mentioned that you're confident this year AIR will be performing favorably versus your peers. And I just wanted to clarify how you perform? How you define that.

好的。偉大的。我的第二個問題是問特里的。在您的開場白中，您提到您相信今年 AIR 的表現將優於您的同行。我只是想澄清一下你的表現如何？你如何定義它。

Well, thank you very much. That is a very good question, John. It's what I would have addressed in my prepared remarks, which is to look at the big picture, that the most important things that are happening at AIR are the increased quality of the portfolio, higher average rents, faster growth rates, higher margins, higher credit customers, greater retention, bigger margins, so forth. And off-balance sheet asset, of course, is a stable and productive workforce.

好的，謝謝。這是一個非常好的問題，約翰。這就是我在準備好的發言中要闡述的內容，即著眼於大局，AIR 正在發生的最重要的事情是投資組合質量的提高、平均租金更高、增長率更快、利潤率更高、信用客戶、更大的保留率、更大的利潤等等。當然，表外資產是穩定且富有生產力的勞動力。

So those are things that, when we look back at the end of 2024, will show up in free cash flow growth and it'll show up in 2025 FFO and AFFO at a greater degree. In 2022, we had considerable nonrecurring income because of the acceleration of the divorce from Aimco. But we called it out, so the market would see it, and focus on the recurring number, which continues to grow comfortably. I think everything we see is that growth continues. I want to emphasize one thing that, again, gets to be lost. In 2023, the real estate markets were largely paralyzed by -- with low volume and transactions because of the standoff in pricing between providers of capital and users of capital.

因此，當我們回顧 2024 年底時，這些事情將體現在自由現金流成長中，並將在更大程度上體現在 2025 年的 FFO 和 AFFO 中。 2022年，由於與Aimco的加速離婚，我們有相當可觀的非經常性收入。但我們大聲疾呼，這樣市場就會看到它，並關注持續成長的數字。我認為我們看到的一切都是成長在持續。我想再次強調一件事，它會被遺忘。 2023 年，由於資本提供者和資本使用者之間的定價僵局，房地產市場基本上陷入癱瘓，成交量和交易量都很低。

We were very successful in using the kindness of our joint venture partners to participate, to buy properties at considerable discounts that are going to reward us in the future. And we were able to do that also in a way that increased our scale, our assets under management. So our net effective G&A, which is already low, gets lower still. So I just think when we focus on the use of proceeds and not just the cost of proceeds, we're going to be satisfied with the outcome.

我們非常成功地利用合資夥伴的善意參與，以相當大的折扣購買房產，這將在未來為我們帶來回報。我們也能夠以擴大規模和管理資產的方式做到這一點。因此，我們的淨有效總費用和行政費用本來就很低，而且還會更低。所以我認為，當我們專注於收益的使用而不僅僅是收益的成本時，我們會對結果感到滿意。

I think you mentioned FFO was part of that. Just wanted to clarify.

我想你提到的 FFO 就是其中的一部分。只是想澄清一下。

I think FFO and I, of course, would direct people also to AFFO. I think it's important to consider both and net asset values, which discount growth rates. I think the (inaudible) will measure the value of the enterprise, which I predict will be significantly higher both than it is today, and we'll have a rate of growth in '24 that will compare very favorably to our peers who are wonderful companies but face different challenges and have different exposures to new supply, have different exposures to foreclosures in their mezzanine loan portfolios, different exposures to development and other such activities. And I think net-net, we're going to do fine.

我認為 FFO 和我當然也會引導人們去 AFFO。我認為重要的是要考慮資產淨值，它會折現成長率。我認為（聽不清楚）將衡量企業的價值，我預測該價值將顯著高於今天，並且我們將在 24 年實現增長率，與我們出色的同行相比將非常有利不同的公司面臨著不同的挑戰，對新供應的敞口也不同，夾層貸款組合中止贖的敞口也不同，開發和其他此類活動的敞口也不同。我認為淨淨，我們會做得很好。

And your next question comes from the line of Rob Stevenson from Janney.

你的下一個問題來自詹尼的羅布史蒂文森。

I guess just piggybacking off of your comments there, Terry, in terms of difference between you and peers. Can you talk about what your systems are telling you in terms of new lease rent growth goes from here. You were negative for a very short period of time and by a much smaller magnitude than almost all of your peers and now it's positive on signed leases in January. Are you going to be able to stay positive on new lease rates in first quarter? And does it turn back negative at any point in '24, given what you're seeing today?

特里，我想只是藉鑒了你的評論，就你和同齡人之間的差異而言。您能否談談您的系統告訴您的新租賃租金增長的情況。您在很短的時間內呈負數，而且幅度比幾乎所有同行都要小得多，而現在在一月份簽署的租約上呈正數。您能否對第一季的新租賃利率保持樂觀？鑑於您今天所看到的情況，它是否會在 24 年的任何時候轉為負值？

Rob, thanks. Look, we're feeling very optimistic as we go into the year, as you point out here, and it's not just optimism. The facts are our occupancy today at 97.7% is setting us up for a strong acceleration into spring season. The 18, look, implied in our 3.5% blend that would get us to our 3.8 revenue guidance. It puts a 2% new lease and a 5% renewal.

羅布，謝謝。聽著，正如您在這裡指出的那樣，隨著我們進入這一年，我們感到非常樂觀，而且這不僅僅是樂觀。事實上，我們今天的入住率為 97.7%，這為我們強勁加速進入春季做好了準備。 18，看，在我們 3.5% 的混合中暗示，這將使我們達到 3.8 的收入指導。它收取 2% 的新租約和 5% 的續約費。

So that's essentially what we have in. We have a 1% market growth from today into, call it, July is when we get into peak season and we're already starting to realize that today, so -- but what will happen next, I will say this will be more important being known probably in April but we're already seeing volumes that are increasing coming out of the holidays and the winter months. And what we're seeing is more of a pre-pandemic kind of acceleration. When we look back, let's call it, between 2014 and 2019, prior to the pandemic. This is the type of acceleration we would have seen. And so more work to be done, but we're feeling good about where we're at.

這基本上就是我們所擁有的。從今天開始，我們的市場增長率為1%，可以這麼說，7 月是我們進入旺季的時候，我們今天已經開始意識到這一點，所以- 但接下來會發生什麼，我想說的是，這可能在四月就知道了，但我們已經看到假期和冬季的銷量正在增加。我們看到的更多是大流行前的加速。當我們回顧過去時，我們稱之為2014年至2019年，即疫情爆發之前。這就是我們會看到的加速類型。還有更多工作要做，但我們對目前的狀況感覺良好。

Okay. That's helpful. And then, Paul, has your Southern California portfolio had any material damage from the recent extreme weather and are your California assets specifically insured for flood? Or is that something that if it incurred would be self-insured.

好的。這很有幫助。然後，保羅，您的南加州投資組合是否因最近的極端天氣而受到任何實質損害？您的加州資產是否專門投保了洪水保險？或者如果發生這種情況，是可以自我保險的。

Rob, I'll handle the first part of the question and turn it over to Patti Shwayder, who runs our insurance program to dive into some of the particular details. As far as any material damage, no, nothing material. We have seen what you would expect, leaky roofs in spots, some water intrusion, but the costs of which are less than $0.5 million based upon what we know today.

羅布，我將處理問題的第一部分，並將其交給帕蒂·施韋德 (Patti Shwayder)，她負責管理我們的保險計劃，以深入研究一些特定的細節。至於任何物質損壞，不，沒有任何物質損壞。我們已經看到了您所期望的情況，一些地方的屋頂漏水，一些水侵入，但根據我們今天所知，其成本不到 50 萬美元。

And yes, we're insured for flood and all other perils in these properties, in around the country.

是的，我們為全國各地這些房產的洪水和所有其他危險投保。

And your next question comes from the line of Haendel St. Juste from Mizuho.

你的下一個問題來自 Mizuho 的 Haendel St. Juste。

Terry, I think you mentioned earlier that you don't have plans at the current moment to transact, but that you're certainly in a position to be able to. So I'm curious what your seeing out there today in terms of cap rate IRRs and maybe where they need to be for you to get more active? And where potentially could we see you get more active coastal, Sunbelt, any particular market you'd like to highlight?

特里，我想您之前提到過，您目前沒有計劃進行交易，但您肯定有能力進行交易。所以我很好奇您今天在資本化率 IRR 方面看到了什麼，也許它們需要在哪裡才能讓您變得更加活躍？我們可以在哪些方面看到您在沿海地區、陽光地帶以及您想要強調的任何特定市場變得更加活躍？

Thank you very much. I think that -- I like very much talking about the opportunities we see today and you're pointing to something that is very real. That benefit to people who have access to capital and can make it worth more is what we have at a time when sellers have few alternatives. For specific details, I'd like to turn it over to Josh because he's nodding his head and eager to go and tell you what he's seeing out there. Josh?

非常感謝。我認為——我非常喜歡談論我們今天看到的機會，而你指出的是一些非常真實的東西。在賣家別無選擇的情況下，對於那些能夠獲得資金並使其價值更高的人來說，這種好處正是我們所擁有的。對於具體細節，我想將其交給喬什，因為他正在點頭並渴望告訴你他在那裡看到了什麼。喬許？

Yes. Thank you, Terry. Thank you, Haendel. We're very active in the market in terms of stocking with potential sellers and evaluating opportunities in our markets. We are seeing a pickup in likely transaction activities measured by good chatter among sellers and broker listings as a proxy for what we might see in our typical off-market approaches to transactions.

是的。謝謝你，特里。謝謝你，亨德爾。我們在市場上非常活躍，向潛在賣家進貨並評估市場機會。我們看到可能的交易活動有所增加，這是透過賣家和經紀人清單之間的良好討論來衡量的，作為我們在典型的場外交易方法中可能看到的代理。

In terms of returns, I think we're still seeing something of a bit of spread. Most sellers are shooting for a low 5 cap rate, and most buyers are shooting for a high 5 to 6. We certainly would want to be at the very top end of the returns, and we'll be focused on establishing our cost of capital and then executing transactions where we have the opportunity to both improve our portfolio quality by buying assets with the opportunity to apply to AIR Edge and generate that outsized growth rate and ultimately generate a spread of 200 basis points or more to our cost of capital.

就回報而言，我認為我們仍然看到了一些分散的情況。大多數賣家的目標是較低的 5​​ 上限利率，而大多數買家的目標是較高的 5 至 6 上限利率。我們當然希望處於回報率的最高端，我們將專注於確定我們的資本成本然後執行交易，我們有機會透過購買有機會申請AIR Edge 的資產來提高我們的投資組合質量，並產生巨大的成長率，最終使我們的資本成本產生200 個基點或更多的利差。

Got it. Got it. Keith, I guess maybe one for you. I think you outlined, I think, in the guide market rate growth for this year, effectively flat, I think, with renewals kind of in that plus 5%. I'm curious if you're concerned at all about kind of creating a game to lease situation for the portfolio next year and how that might impact your ability to push renewals next year?

知道了。知道了。基思，我想也許有一個適合你。我想你在今年的指南市場利率成長中概述了，我認為，我認為，續約率大約是 5%。我很好奇您是否擔心明年為投資組合創造一種遊戲租賃情況，以及這可能會如何影響您明年推動續約的能力？

So Haendel, just for clarification, we have 1% market growth between now and peak season that's implied in the guidance. So just -- we do see -- we have some optimism that we will start seeing that, and it could be better or worse than that. But at the end of the day, we're seeing it already in our January numbers. .

Haendel，只是為了澄清一下，從現在到旺季，我們的市場成長了 1%，這在指導中是隱含的。因此，我們確實看到，我們樂觀地認為我們將開始看到這一點，而且情況可能會比這更好或更糟。但歸根結底，我們已經在一月份的數據中看到了這一點。 。

I don't have any particular concern about a gain to lease condition. I know that to be clear about that, I always get a little bit off put around those terminologies because there are points in time. And so if we rent 10 apartments today, that will change up and down loss, deletes our gain to leases. And really, the -- where I'd point your attention to is the 2.4% earn-in and more importantly, the 3.5% blend that we have in our plan that would put us through 2024. All those things become realities, which we anticipate, that will then have earned -- with those -- and into '25 and beyond.

我對租賃收益條件沒有任何特別的擔憂。我知道，為了澄清這一點，我總是對這些術語感到有點困惑，因為存在時間點。因此，如果我們今天租 10 套公寓，這將導致損失上下變化，從而刪除我們的租賃收益。事實上，我要讓你們注意的是 2.4% 的盈利，更重要的是，我們計劃中的 3.5% 的混合，這將使我們度過 2024 年。所有這些事情都成為現實，我們預計，這將贏得- 與那些- 並進入'25及以後。

Got it. Got it, okay. And then lastly, I'm not sure if you outlined it. Expectations for turnover this year, how that's reflected in the guide. And I think you mentioned the bad debt improvement, not sure what the number is, but maybe talk about how that plays into your outlook for the expenses as well.

知道了。明白了，好吧。最後，我不確定你是否概述了它。對今年營業額的預期，以及指南中如何反映這一點。我認為您提到了壞帳改善，不確定具體數字是多少，但也許可以談談這對您的支出前景有何影響。

Haendel, this is Paul. I'll start with bad debt. In bad debt, we've actually had a very good track record coming out of the pandemic. If I go back to 2021, I think our bad debt as a percent of revenues was 1.6%. In 2022, it improved to 1%. And then in 2023, it improved to 60 basis points. So we do expect continued improvement in 2024. I don't think we can bank on another 40 bps improvement. But as Keith mentioned in his remarks, we expect about a 10 basis point improvement.

韓德爾，這是保羅。我將從壞帳開始。在壞帳方面，我們實際上在疫情爆發後取得了非常好的記錄。如果我回到 2021 年，我認為我們的壞帳佔收入的百分比是 1.6%。 2022年，這一比例將提高至1%。然後在 2023 年，它提高到了 60 個基點。因此，我們確實預計 2024 年將繼續改善。我認為我們不能指望再提高 40 個基點。但正如基斯在演講中提到的那樣，我們預計會出現 10 個基點左右的改善。

Haendel, I'll just add a couple of pieces. First off, I'll add a couple of things from inside on the bad debt. And then the second piece, I'll circle back to your question about retention. I think one of the things that is being unique characteristic in our bad debt is just sort of our process. And some of the emphasis we put around our resident selection process and those folks that we went to that are not short-term renters, but more importantly, people that stay with us over long periods of time.

亨德爾，我只添加一些內容。首先，我將從內部添加一些關於壞帳的內容。然後是第二部分，我將回到你關於保留的問題。我認為我們壞帳的獨特特徵之一就是我們的流程。我們的重點是我們的居民選擇過程，我們去的人不是短期租客，但更重要的是，長期與我們住在一起的人。

This will get a dovetail right into your question about retention. But through that process of the resident selection and then secondarily, is that we collect our rent centrally. And so I don't know if that's something we've talked about before. But here in Denver, we have a centralized rent collection team. And for a person that over multiple decades has done this work, typically, it had -- if you had 100 [bill of lease], you might have 100 community managers collecting rent and you're trying to manage all of them and coach them up and figure out who's doing what and what would we have here is about 10 individuals, they're just experts, professionals doing this.

這將與您關於保留的問題相吻合。但透過居民選擇的過程，其次是我們集中收取租金。所以我不知道這是否是我們之前討論過的事情。但在丹佛，我們有一個集中的租金收取團隊。對於一個從事這項工作數十年的人來說，通常情況下，如果你有 100 份[租賃單]，你可能有 100 名社區經理在收取租金，而你正試圖管理他們所有人並指導他們我們這裡大約有10 個人，他們只是做這件事的專家、專業人士。

And so when you look at how this bad debt number has improved as Paul just went through the walk up at 1.6% to 1% to 60 bps and where we get to '24, there's a lot of very specific things we do. The one sort of flying the [abatement], I would tell you in bad debt is, is that courts have been a little bit slower coming out of the pandemic. So we'll see how that plays out in the future, but we're optimistic about our process.

因此，當你看看這個壞帳數字是如何改善的，因為保羅剛剛以 1.6% 到 1% 到 60 個基點的速度上升，我們到了 24 年，我們做了很多非常具體的事情。我想告訴你們，在壞帳中，實現[減免]的一種方式是，法院在擺脫大流行病後的反應速度有點慢。因此，我們將看看未來會如何發展，但我們對我們的進程感到樂觀。

Going to the retention, what we have implied in our guidance of the 38 is essentially more of the same. I just reported that we were at 62.3%, which would be our best number that we've ever marked. We would anticipate something similar, if not better. And when I say, if not better, every single day, we have a very strong emphasis around longer-staying residents, less turnover, avoiding costs and creating total contribution to the bottom line.

至於保留率，我們在 38 的指導下所暗示的內容基本上是相同的。我剛剛報告說，我們的得分為 62.3%，這將是我們標記過的最佳數字。我們預計會出現類似的情況，甚至更好。當我說，即使不是更好，每一天，我們都非常重視長期居住的居民、減少人員流動、避免成本以及為利潤創造總貢獻。

Haendel, if I could join in, it's Terry. A part -- I just want to emphasize 2 points. Part of it that Keith touched on is the creditworthiness of our customer. And so we're just less exposed to bad debt because we have people who have a track record of paying their bills. The second is I want to throw a bouquet to Paul. Because we did not make accruals based on optimism during the pandemic. We were very disciplined in our accounting and so we don't have to reverse those accruals. We don't -- we're operating where anything -- any news is basically good news. And so our bad debt for the fourth quarter was all flat, 0.

亨德爾，如果我可以加入的話，那就是特里。有一部分——我只想強調2點。基斯提到的一部分是我們客戶的信譽。因此，我們面臨壞帳的風險較小，因為我們的員工有支付帳單的記錄。第二個是我想向保羅丟花束。因為我們在疫情期間並沒有基於樂觀情緒進行應計項目。我們的會計非常嚴格，因此我們不必沖銷這些應計費用。我們不會——我們在任何地方開展業務——任何消息基本上都是好消息。因此，我們第四季的壞帳全部持平，為 0。

So net-net of those recoveries, then we're not going to say its 0 for the year. I'm not trying to say that. But I just want to point out 2 things that you can use in thinking about the future. One is that the AIR customer is much less likely to have bad debt. And second, the AIR accounting is much more likely to be connected to cash.

因此，如果扣除這些復甦的淨值，那麼我們不會說今年的復甦率為 0。我並不是想說這句話。但我只想指出兩件事，你可以用它們來思考未來。一是 AIR 客戶出現壞帳的可能性要小得多。其次，AIR 會計更有可能與現金相關。

And your next question comes from the line of Rich Anderson from Wedbush.

你的下一個問題來自韋德布希的里奇·安德森（Rich Anderson）。

So I can't help, but I'm a cynic, right? 2.4% earn-in is way above your peers, 2% new lease growth is above your peers. These are all really good operators of multifamily real estate. And so I need to be a believer here, but -- is it -- is there an element of luck and I don't mean that in a derogatory way. But supply is on everybody's mind, of course, particularly in the Sun Belt. Are you finding yourselves just not positioned in a place where others are getting a lot of headwinds from new supply.

所以我無能為力，但我是一個憤世嫉俗的人，對吧？ 2.4% 的收益遠高於同行，2% 的新租賃成長率也高於同行。這些都是多戶型房地產的優秀經營者。所以我需要成為這裡的信徒，但是 - 是嗎 - 是否有運氣的成分，我並不是貶義的意思。當然，供應是每個人都關心的問題，尤其是在陽光地帶。您是否發現自己處於一個其他人因新供應而受到很大阻力的境地？

What -- besides the fact that you're good at your job and all that sort of stuff, what is causing sort of this outsized level of relative growth for you guys relative to everybody else from a same-store perspective?

除了你們擅長自己的工作以及諸如此類的事實之外，從同店的角度來看，是什麼導致了你們相對於其他人的相對增長水平如此之大？

Rich, as usual, my dear friend, you've got great questions. And I look forward to the headline you'd attach to it. But it's really 2 things. There are really 2 and they're very different, and -- but they're measurable and you can call them out.

Rich，像往常一樣，我親愛的朋友，你提出了很好的問題。我期待著您附加的標題。但這確實是兩件事。確實有兩個，而且它們非常不同，而且——但它們是可以測量的，你可以把它們叫出來。

The first one is operations. We have a customer that, as I just said, has better credit, so it's more likely to behave the way we expect, more likely to be a good neighbor to the other residents. We have -- as a result, we do more of our business at higher renewal pricing and less of our business at lower new lease pricing. And that's just -- those are structural advantages. We have a record of cost control that is superior, and we give great credit for that to Keith.

第一個是營運。正如我剛才所說，我們有一個客戶擁有更好的信用，因此它更有可能按照我們期望的方式行事，更有可能成為其他居民的好鄰居。因此，我們以更高的續租定價開展更多業務，以更低的新租賃定價開展更少的業務。這只是——這些都是結構性優勢。我們在成本控制方面有著出色的記錄，對此我們給予 Keith 極大的信任。

But I just have to say that, that's Keith and Matt Holmes, who's here in the room and hundreds of teammates around the country that have done a really good job and are highly productive and highly stable. So one of the most important metrics about operations is the turnover of our teammates and what you see is high tenant -- high teammate engagement and stickiness and stability. They're well compensated. They've good great job satisfaction, and they do a better job than the peers. So that's one.

但我必須說，那就是基斯和馬特霍姆斯，他們在房間裡，還有全國各地的數百名隊友，他們做得非常好，工作效率很高，而且非常穩定。因此，關於營運的最重要的指標之一是我們隊友的流動，你看到的是高租戶——高隊友參與度以及黏性和穩定性。他們得到了很好的補償。他們的工作滿意度很高，而且比同齡人做得更好。這就是其中之一。

The second one, which goes with it is portfolio composition. That is intentional, but it's also a very difficult exercise because we're subject to political wins and economic changes that go back and forth. And at times when a concentration pays off, you'll see that in the outperformance of investor in California concentrated there did great for 10 or 15 years, [levered by top 13]. That was a terrific moment. You can see concentrated investors in Sun Belt markets did great during the pandemic. When you had this influx of in migration.

與之相伴的第二個是投資組合構成。這是有意為之，但這也是一項非常困難的工作，因為我們會受到反覆出現的政治勝利和經濟變化的影響。有時，當集中投資獲得回報時，您會發現集中在加州的投資者在 10 或 15 年內表現出色，[受到前 13 名的槓桿作用]。那是一個很棒的時刻。您可以看到陽光地帶市場的集中投資者在疫情期間表現出色。當你有大量的移民湧入時。

We're more of the Steady Eddie. We want to avoid -- we'd love to have those benefits to say that, but we want to be balanced against those risks. And so we've made independent decisions.

我們更像是穩定的艾迪。我們想要避免——我們很想擁有這些好處，但我們希望與這些風險保持平衡。所以我們做出了獨立的決定。

We made decisions about Florida that were different than peers, made decisions about Philadelphia that were different than peers. They both have pluses or minuses, but that's part of a differentiation which provides -- which results from diversification, which ends up with lower risk. And so that's how we get there.

我們對佛羅裡達所做的決定與同行不同，對費城所做的決定也與同行不同。它們都有優點或缺點，但這是差異化的一部分，這種差異化是多元化的結果，最終風險較低。這就是我們到達那裡的方式。

All right. Second question is entirely unrelated, but on run rate FFO is there -- I need another FFO definition like a hole in the head, and thinking -- speaking to a lot of people. Why didn't you just put this swap gain in core FFO and then there would have been a lot less misunderstanding about how people were growing 2024. Is there a structural reason why you didn't just handle it that way? And two, can we get rid of run rate FFO for now in 2024, since it's the same thing as core FFO. It's a little self-serving, but I'd love to hear your comments about those too.

好的。第二個問題完全不相關，但就運行率而言，FFO 是存在的——我需要另一個 FFO 定義，就像頭上的一個洞，並思考——與很多人交談。為什麼你不直接把這個掉期收益放在核心 FFO 中，這樣對於 2024 年人們如何成長的誤解就會少很多。是否有結構性原因導致你不那樣處理？第二，我們能否在 2024 年暫時取消運行率 FFO，因為它與核心 FFO 是一樣的。這有點自私，但我也很想聽聽您對此的評論。

Rich, I think AIR culture and certainly, my values are to be completely transparent. To the best I can let you know what I know. And what we wanted to communicate, it was run rate FFO, which was originated following the Aimco separation in '22 -- not -- that's the original one in 2020, was that a lot of the income that we -- real income, cash money that we were receiving in '22 was a onetime event.

Rich，我認為 AIR 文化，當然還有我的價值觀都是完全透明的。我盡最大努力讓你知道我所知道的。我們想要傳達的是運行率 FFO，它是在 22 年 Aimco 分離之後產生的——而不是——這是 2020 年的最初的，是我們的很多收入——實際收入、現金我們在22 年收到的錢是一次性事件。

We need -- we just -- we wanted to ask the market to take the burden of a third definition of profitability, but to see that one part is recurring, one part isn't. We did it again last year with a lesser concern, but we had these -- the swaps that had been accelerated. And we didn't want to either confuse the market or had let the market confused of thinking we were confused, but we knew these were nonrecurring.

我們需要——我們只是——我們想讓市場承擔盈利能力的第三種定義的負擔，但要看到一部分是重複出現的，一部分不是。去年我們再次這樣做，雖然擔心較少，但我們有這些——加速了的互換。我們不想讓市場感到困惑，也不想讓市場認為我們感到困惑，但我們知道這些都是不會重複出現的。

We're going to call them out. And so we are completely transparent in what we do. And I think sometimes people aren't used to that and just find the volatility of life upsetting. But that's why we do that. I think in 2024, you're right, it's increasingly likely that we won't have that exposure, but we will have nonrecurring income and expenses that are unpredictable every year. Hopefully, they won't be as material.

我們要把他們叫出來。因此，我們的工作是完全透明的。我認為有時人們不習慣這一點，只是覺得生活的波動令人不安。但這就是我們這樣做的原因。我認為到 2024 年，你是對的，我們越來越有可能不再有這種風險，但我們每年都會有不可預測的非經常性收入和支出。希望它們不會變成物質。

(Operator Instructions) Your next question comes from the line of John Pawlowski from Green Street Advisors.

（操作員說明）您的下一個問題來自 Green Street Advisors 的 John Pawlowski。

Josh, I have 2 questions on recent acquisitions in the last few quarters, just so I understand the underwriting process. One, the Raleigh market, I think is expecting high single-digit per annum supply growth this year and next year. So it feels like rents are going to be more likely down than up. So how do you get comfortable pushing chips in Raleigh?

喬什，我有兩個關於過去幾個季度最近收購的問題，只是為了讓我了解承保流程。一是羅利市場，我認為預計今年和明年的每年供應量將出現高個位數成長。因此，感覺租金下降的可能性大於上漲的可能性。那麼，如何在羅利輕鬆推籌碼呢？

Second question would be on the Bethesda acquisition. Several months ago, $550,000 per door, $3,600 rents, it's really, really high. And so how do you get comfortable pushing rents over a longer period of time to get to these double-digit IRRs you're sitting?

第二個問題是關於貝塞斯達的收購。幾個月前，每扇門55萬美元，租3600美元，真的非常非常高。那麼，您如何在較長時間內提高租金以達到兩位數的內部報酬率呢？

Thank you, John. Both really good questions. Taking them in order. With Raleigh, this has been a long-term plan for us and part of our intentional portfolio diversification strategy. We're attractive to the market for all the reasons that are probably obvious. The favorable rule of law there. And we love to have a balance of factors across the portfolio, taking a long-term outlook and looking at discounts to replacement cost.

謝謝你，約翰。這兩個問題都非常好。按順序排列它們。對羅利來說，這是我們的長期計劃，也是我們有意的投資組合多元化策略的一部分。我們對市場具有吸引力的原因可能是顯而易見的。那裡有良好的法治。我們喜歡在整個投資組合中平衡各種因素，並專注於長遠並考慮重置成本的折扣。

We did underwrite the supply. That's not a secret to anyone, and we're well aware. We think this timing was a particular time where the buyers were all underwriting the supply. And we had the opportunity to purchase on income that took that into account and allow us to get an unusually attractive basis that we think will age quite well as we work in those properties. And we're benefited greatly by Keith, in AIR Edge, which will generate internal growth with those properties, not relying on the market to generate the returns, but really relying on the execution to generate the returns.

我們確實承保了供應。這對任何人來說都不是秘密，我們都很清楚。我們認為這個時機是買家全部承保供應的特定時間。我們有機會根據收入進行購買，考慮到這一點，並使我們能夠獲得異常有吸引力的基礎，我們認為隨著我們在這些房產中工作，這種基礎會很好地老化。我們從 AIR Edge 的 Keith 那裡受益匪淺，它將透過這些屬性產生內部成長，而不是依賴市場來產生回報，而是真正依賴執行來產生回報。

Following up on Bethesda, the purchases beyond there, we're very excited about. It is an expensive building to buy and an extensive building to live at. It's also the highest quality building that I'm aware of in the greater D.C. Metro. And we bought it under both development and replacement costs and believe that, that will be a long-term asset with a strategic advantage in the space.

繼貝塞斯達之後，我們對那裡的購買感到非常興奮。這是一棟購買昂貴的建築，也是一棟寬敞的居住建築。這也是我所知道的大華盛頓特區地鐵中品質最高的建築。我們以開發和重置成本的價格購買了它，並相信這將是一項在該領域具有戰略優勢的長期資產。

And I'll just add, if I might, John, add to Josh's comments. Just as to Raleigh, don't miss the cost basis of buying at a discount to replacement. And as to Bethesda, we've had a show and tell on this SEC filing, which we'll walk through in great detail, show you exactly how we underwrote it.

如果可以的話，我將補充約翰的評論。就像羅利一樣，不要錯過以折扣價購買替換品的成本基礎。至於貝塞斯達，我們已經對這份 SEC 文件進行了展示和講述，我們將詳細介紹該文件，向您展示我們如何承保它。

Okay. Maybe one follow-up on the Raleigh. So what's the exit cap rate [assumption], long-term NOI growth assumption, however you want to frame it, to get from a mid-5% cap rate in a market where rents are going to be stagnant to over a 10% IRR. It seems like a massive pickup.

好的。也許是羅利號的後續行動。那麼，退出上限率（假設）是多少，長期 NOI 成長假設，無論你想如何設計，在租金將停滯不前的市場中，從 5% 的上限率中獲得超過 10% 的 IRR 。這看起來像是一次大規模的皮卡。

Yes. No, really good question. It is a massive pickup, and that's driven by Keith and his team, not by just riding the market wave. So we're really looking at the nuances of the property, taking the in-place cap rate and then we're looking at what happens when Keith operates, it is at its usual level of efficiency. And that provides a significant increase in the yield. And you've seen that in our previous acquisition portfolios where we have roughly double the same-store growth. And we expect that here.

是的。不，真是個好問題。這是一次巨大的回升，這是由基斯和他的團隊推動的，而不僅僅是順應市場浪潮。因此，我們確實正在研究該物業的細微差別，採用就地資本化率，然後我們正在研究基思運營時會發生什麼，它處於通常的效率水平。這使得產量顯著增加。您已經看到，在我們之前的收購組合中，我們的同店成長大約是原來的兩倍。我們期望在這裡。

And that isn't market-driven growth. That's AIR and Keith driven growth. So that's the biggest driver. In terms of exit cap rates, we're generally exiting roughly where cap rates are today. So we're not counting -- we're not assuming the cap rates compress over time.

這不是市場驅動的成長。這是 AIR 和 Keith 推動的成長。所以這是最大的驅動力。就退出上限利率而言，我們通常會大致以目前的上限利率退出。所以我們沒有計算——我們沒有假設資本化率會隨著時間的推移而壓縮。

Okay. One more, Terry, on the balance sheet. So I know when you initially did the spin, you had a mid-5x leverage target. And there's been some good resistance around the 6x mark last few years. I'm not worried about balance sheet risk, but there is a missed opportunities, inability to play offense, if opportunities come up. So I guess what I struggle with is, not ripping off the Band-Aid and getting to lower leverage because it has prompted you guys scrambling a little bit to all this derivative activity to fix the debt.

好的。特里，資產負債表上還有一項。所以我知道當您最初進行旋轉時，您的槓桿目標大約是 5 倍。過去幾年，在 6 倍大關附近出現了一些良好的阻力。我並不擔心資產負債表風險，但如果機會出現，就會錯失機會，無法進攻。所以我想我所面臨的困難是，不要撕掉創可貼並降低槓桿率，因為這促使你們忙於所有這些衍生性商品活動來修復債務。

And so why not keep life maybe old fashioned? Well, why not keep life much simpler and just reduce the absolute level of leverage versus having to go out and do all this derivative activity to fix the debt. Any comments there would be really appreciated.

那為什麼不讓生活保持老式呢？好吧，為什麼不讓生活變得更簡單，只是降低槓桿的絕對水平，而不是必須出去進行所有這些衍生活動來修復債務。如有任何意見，我們將不勝感激。

Sure, John. I mean, first, as you know, our debt is -- much of it -- 2/3 or more is nonrecourse. And one of my favorite analysts gives us a 10% discount in the burden of that debt just for that put. .

當然，約翰。我的意思是，首先，正如你所知，我們的債務——其中大部分——2/3 或更多是無追索權的。我最喜歡的一位分析師就該看跌期權給了我們 10% 的債務負擔折扣。 。

Second, that the question of having an opportunity is a good thing, but it's a good thing when you use it. Having it by itself is sterile. So the time to use it is when there's blood in the streets, when prices are low. And so waiting to do this at another time, when everything is harmonious is to say, to miss the opportunity. So the -- we embrace the opportunity to buy now. And the fact that we've been able to do that and stay within low leverage by certainly by comparison to the asset class and I think compared to our business model is something that can take advantage of what's a structural advantage for apartments generally is something that we're paid to do because it creates value for shareholders.

其次，有機會的問題是好事，但是當你利用它的時候才是好事。擁有它本身是無菌的。所以使用它的時機就是街道上血流成河、物價低廉的時候。因此，等到一切都和諧的時候再做這件事，就等於錯過了機會。因此，我們抓住現在購買的機會。事實上，我們已經能夠做到這一點，並且與資產類別相比，當然可以保持較低的槓桿率，而且我認為，與我們的商業模式相比，我們可以利用公寓的結構性優勢，這通常是我們之所以得到報酬，是因為它為股東創造了價值。

And there are no further questions at this time. I would like to turn it back to Terry Considine, CEO, for closing remarks.

目前沒有其他問題。我想請執行長特里·康斯丁 (Terry Considine) 發表結束語。

Well, thank you very much, and thanks to all of you still on the call. I appreciate your interest in AIR. I'm excited about the future. You have questions, please feel free to call any of us. And look forward to seeing you soon at a long number of conferences. Be well. Bye.

嗯，非常感謝你們，也感謝仍在通話中的所有人。我感謝您對 AIR 的興趣。我對未來感到興奮。您有任何疑問，請隨時致電我們。並期待很快在眾多會議上見到您。祝你一切順利。再見。

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

謝謝各位主持人。女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。