Alexander & Baldwin Inc (Hawaii) (ALEX) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Alexander & Baldwin Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that today's event is being recorded. I would now like to turn the conference over to Steve Swett of Investor Relations. Please go ahead, sir.

下午好，歡迎參加 Alexander & Baldwin 2023 年第二季度收益電話會議。 （操作員說明）請注意，今天的活動正在錄製中。我現在想將會議交給投資者關係部的史蒂夫·斯威特 (Steve Swett)。請繼續，先生。

Thank you. Aloha, and welcome to our call to discuss Alexander & Baldwin's Second Quarter 2023 Earnings.

謝謝。阿羅哈，歡迎致電討論 Alexander & Baldwin 2023 年第二季度收益。

With me today for our earnings call are A&B's Chief Executive Officer, Lance Parker; and our Chief Financial Officer, Clayton Chun. We're also joined by Kit Millan, Senior Vice President of Asset Management, who is available to participate in the Q&A portion of the call.

今天與我一起參加財報電話會議的有 A&B 首席執行官蘭斯·帕克 (Lance Parker)；以及我們的首席財務官 Clayton Chun。資產管理高級副總裁 Kit Millan 也加入了我們的行列，他可以參加電話會議的問答部分。

During our call, please refer to our second quarter 2023 supplemental information available on our website at investors.alexanderbaldwin.com/supplements.

在我們的電話會議期間，請參閱我們網站 Investors.alexanderbaldwin.com/supplements 上提供的 2023 年第二季度補充信息。

Before we commence, please note that the statements in this call that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding possible or assumed future results of operations, business strategies, growth opportunities and competitive positions.

在我們開始之前，請注意，本次電話會議中的陳述並非歷史事實，而是1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，其中涉及許多風險和不確定性，可能導致實際結果存在重大差異來自相關前瞻性陳述所設想的內容。這些前瞻性陳述包括但不限於有關可能或假設的未來經營業績、業務戰略、增長機會和競爭地位的陳述。

Such forward-looking statements speak only as of the date the statements were made and are not guarantees of future performance. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events that differ materially from those expressed in or implied by the forward-looking statements.

此類前瞻性聲明僅代表截至聲明發布之日的情況，並不保證未來的業績。前瞻性陳述受到許多風險、不確定性、假設和其他因素的影響，這些因素可能導致實際結果和某些事件的時間安排與前瞻性陳述中明示或暗示的結果和時間存在重大差異。

These factors include, but are not limited to, prevailing market conditions and other factors related to the company's REIT status and the company's business results of operations, liquidity and financial condition and the evaluation of alternatives by the company related to its Materials & Construction business as well as other factors discussed in the company's most recent Form 10-K, Form 10-Q and other filings with the SEC. The information in this call and presentation should be evaluated in light of these important risk factors.

這些因素包括但不限於當前市場狀況以及與公司的房地產投資信託基金地位和公司的經營業績、流動性和財務狀況相關的其他因素，以及公司對與其材料和建築業務相關的替代方案的評估以及該公司最近向SEC 提交的10-K 表、10-Q 表和其他文件中討論的其他因素。應根據這些重要的風險因素評估本次電話會議和演示文稿中的信息。

We do not undertake any obligation to update the company's forward-looking statements. Management will be referring to non-GAAP financial measures during our call today. Please refer to our statements regarding the use of these non-GAAP measures and reconciliations included in our second quarter 2023 supplement.

我們不承擔更新公司前瞻性陳述的任何義務。管理層將在今天的電話會議中提及非公認會計原則財務指標。請參閱我們的 2023 年第二季度補充材料中關於使用這些非 GAAP 衡量標準和調節表的聲明。

Lance will open up today's presentation with an overview of the quarter and provide an update on real estate operations. And then Clayton will discuss financial matters. Lance will return for some closing remarks, but where upon we will open it up for your questions. With that, let me turn it over to Lance.

蘭斯將在今天的演講中概述本季度，並提供房地產運營的最新情況。然後克萊頓將討論財務問題。蘭斯將返回進行一些結束語，但隨後我們將開放供您提問。那麼，讓我把它交給蘭斯。

Thank you, Steve, and Aloha, everyone. Beginning with our commercial real estate portfolio in the second quarter, we again generated excellent results for our shareholders. Our portfolio, consisting of high-quality retail, industrial and ground lease assets produced strong results and continued our momentum from the first quarter in 2022. CRE revenue was up 7.6% in the second quarter compared to the year ago quarter, driven primarily by higher base rent, the impact of removing certain tenants from cash basis revenue recognition and higher expense recoveries. Same-Store NOI was up 4.6%, accelerating from the first quarter.

謝謝史蒂夫和阿羅哈，大家。從第二季度的商業地產投資組合開始，我們再次為股東創造了優異的業績。我們的投資組合由優質零售、工業和地面租賃資產組成，取得了強勁的業績，並延續了2022 年第一季度的勢頭。第二季度商業房地產收入較去年同期增長7.6%，主要是由於較高的基本租金、將某些租戶從現金收入確認中剔除的影響以及更高的費用回收。同店 NOI 增長 4.6%，較第一季度加速。

These strong results reflect the quality of our diversified portfolio and the focused efforts of our team. Our performance continues to benefit from a robust local economy. Hawaii added nearly 20,000 jobs over the past 12 months, an increase of 2.7%. Nonfarm wages increased 2.7% in June 2023 as compared to the prior year. And the unemployment rate at the end of June, adjusted for seasonality was 3%, continuing its downward trend.

這些強勁的業績反映了我們多元化投資組合的質量和我們團隊的專注努力。我們的業績繼續受益於強勁的當地經濟。過去 12 個月，夏威夷新增近 2 萬個就業崗位，增幅為 2.7%。 2023 年 6 月非農工資較上年增長 2.7%。 6月底經季節性調整的失業率為3%，繼續呈下降趨勢。

Throughout our market, we are seeing solid economic activity across most sectors, including the large construction and tourism industries. As we have said before, our portfolio is generally community-based and less dependent on tourist activity, but tourism supports the state's overall economy.

在整個市場中，我們看到大多數行業的經濟活動都很強勁，包括大型建築業和旅遊業。正如我們之前所說，我們的投資組合通常以社區為基礎，較少依賴旅遊活動，但旅遊業支持該州的整體經濟。

Turning to our CRE portfolio leasing metrics. Same-Store leased occupancy at quarter end was 94.3%, a decrease of 30 basis points from 12 months earlier. Same-Store retail leased occupancy was up 90 basis points to 94% and Same-Store industrial leased occupancy was down 260 basis points to 95.8%.

轉向我們的商業地產投資組合租賃指標。季末同店租賃率為 94.3%，較 12 個月前下降 30 個基點。同店零售租賃入住率上升 90 個基點至 94%，同店工業租賃入住率下降 260 個基點至 95.8%。

As we noted last quarter, the decrease in overall portfolio and industrial leased occupancy year-over-year was primarily due to an expected tenant move-out at Kaka'ako Commerce Center in the first quarter of 2023. Same-Store economic occupancy at quarter end was 92.3%, down 20 basis points from 12 months earlier. Same-Store retail economic occupancy was up 120 basis points to 91.8% and Same-Store industrial economic occupancy was down 330 basis points to 94%.

正如我們上季度所指出的，整體投資組合和工業租賃入住率同比下降主要是由於預計 2023 年第一季度 Kaka'ako 商業中心的租戶將遷出。 本季度同店經濟入住率期末為92.3%，較12 個月前下降20 個基點。同店零售經濟入住率上升 120 個基點至 91.8%，同店工業經濟入住率下降 330 個基點至 94%。

Annualized base rent attributable to signed but not opened, or SNO, leases at quarter end were $3.1 million. This compares to $3 million from 12 months earlier and $2.3 million last quarter.

季度末已簽署但未開業或 SNO 租賃的年化基本租金為 310 萬美元。相比之下，12 個月前為 300 萬美元，上季度為 230 萬美元。

During the second quarter, we executed 72 leases in our improved property portfolio. For approximately 220,000 square feet and achieved blended spreads of 5.8%, with spreads for industrial leases at 6.6% and spreads for retail leases at 5.6%. This activity included 20 leases related to properties located in Kailua, including Aikahi Park Shopping Center, totaling approximately 31,000 square feet of GLA and $1.3 million of ABR. One lease at Pearl Highlands Center totaling approximately 35,000 square feet of GLA and $1 million of ABR and 4 leases at Queens' MarketPlace totaling approximately 13,700 square feet of GLA and $700,000 of ABR.

第二季度，我們在改善後的房地產投資組合中執行了 72 項租賃。面積約為 220,000 平方英尺，混合利差為 5.8%，其中工業租賃利差為 6.6%，零售租賃利差為 5.6%。該活動包括與位於凱盧阿的物業相關的 20 項租賃，其中包括 Aikahi Park 購物中心，總計約 31,000 平方英尺的 GLA 和 130 萬美元的 ABR。 Pearl Highlands Centre 的一份租約總計約 35,000 平方英尺的 GLA 和 100 萬美元的 ABR，以及 Queens' MarketPlace 的 4 份租約，總計約 13,700 平方英尺的 GLA 和 700,000 美元的 ABR。

In addition to improved property activity, we also executed the ground lease renewal at Windward City Shopping Center, which renewed on a fair market value reset to $3.9 million from $2.8 million for a spread of 39%. We are pleased with the continued pace of leasing activity and pipeline of active deals.

除了改善房地產活動外，我們還對 Windward City 購物中心的地面租約進行了續約，續租的公平市場價值從 280 萬美元重置為 390 萬美元，價差為 39%。我們對租賃活動的持續發展和活躍交易的不斷湧現感到高興。

Turning to growth. As previously noted, during the quarter, we acquired a 33,200 square foot industrial property in a sale-leaseback transaction for $9.5 million or approximately $286 per square foot. The property is 24-foot clear height, dock-high loading and is located in the Kapolei submarket on Oahu in close proximity to our other industrial assets.

轉向增長。如前所述，本季度，我們通過售後回租交易收購了 33,200 平方英尺的工業地產，價格為 950 萬美元，即每平方英尺約 286 美元。該地產淨高 24 英尺，裝載量達到碼頭高度，位於歐胡島卡波萊 (Kapolei) 子市場，緊鄰我們的其他工業資產。

Based on the 10-year lease, the going-in cash cap rate is 5.6% with 3% annual increases in base rent. Our investment team continues to pursue opportunities that are complementary to our portfolio. Similar to other markets in the country, we have seen wide bid-ask spreads, but we continue to remain disciplined and believe our deep market knowledge will help us execute nimbly when accretive opportunities arise.

根據 10 年期租約，現金上限率為 5.6%，基本租金每年增加 3%。我們的投資團隊繼續尋求與我們的投資組合互補的機會。與該國其他市場類似，我們看到了廣泛的買賣價差，但我們繼續保持紀律，並相信我們深厚的市場知識將幫助我們在出現增值機會時靈活執行。

In the meantime, we continue to pursue value creation opportunities within our portfolio. Our refresh at Manoa Marketplace, the only grocery-anchored neighborhood center in the Manoa area, remains on track for completion in the third quarter. We believe this refresh focused mainly on cosmetic improvements to enhance customer experience will result in higher rental rates over time. We continue to evaluate additional opportunities within our portfolio for capital deployment to drive long-term growth in cash flow and value.

與此同時，我們繼續在我們的投資組合中尋求價值創造機會。我們對馬諾阿市場（馬諾阿地區唯一以雜貨店為主的鄰里中心）的翻新工程仍有望在第三季度完成。我們相信，這次更新主要側重於外觀改進，以增強客戶體驗，隨著時間的推移，將帶來更高的租金率。我們繼續評估投資組合中的其他資本部署機會，以推動現金流和價值的長期增長。

With that, I'll turn the call over to Clayton for financial details. Clayton?

這樣，我會將電話轉給克萊頓以了解財務詳細信息。克萊頓？

Thanks, Lance, and aloha, everyone. Starting with our consolidated metrics on Table 7 of our supplemental. For the second quarter of 2023, net income available to shareholders was $13.3 million or $0.18 per diluted share.

謝謝蘭斯，大家好。從我們補充材料表 7 中的綜合指標開始。 2023 年第二季度，股東可獲得的淨利潤為 1,330 萬美元，即稀釋後每股收益 0.18 美元。

Turning to FFO and core FFO. Second quarter FFO was $19.8 million or $0.27 per diluted share. Core FFO was $21.3 million or $0.29 per diluted share. Each of these metrics for the second quarter of 2023 benefited from collections of amounts reserved in prior years of approximately $600,000 or $0.01 per diluted share as compared to $1.8 million or $0.02 per diluted share in the second quarter of 2022.

轉向 FFO 和核心 FFO。第二季度 FFO 為 1,980 萬美元，或攤薄後每股 0.27 美元。核心 FFO 為 2130 萬美元，或攤薄後每股 0.29 美元。 2023 年第二季度的每一項指標都受益於前幾年約 60 萬美元或稀釋後每股 0.01 美元的預留金額，而 2022 年第二季度為 180 萬美元或稀釋後每股 0.02 美元。

The quarter-to-date metrics also benefited from $1.3 million or $0.02 per diluted share resulting from the removal of certain tenants from cash basis in the second quarter of 2023. There were no tenants removed from cash basis in the second quarter of 2022. For additional details on our results in comparison to prior periods in 2022, please see our earnings release and supplemental information package.

季度至今的指標還受益於 2023 年第二季度將某些租戶從現金制中刪除而帶來的 130 萬美元或稀釋後每股 0.02 美元。2022 年第二季度沒有租戶從現金制中刪除。有關我們與2022 年前期相比的結果的更多詳細信息，請參閱我們的收益發布和補充信息包。

Let me now turn to our Commercial Real Estate segment on Table 8. For the second quarter, CRE revenues increased 7.6% or $3.5 million over the prior year quarter to $49.5 million. This increase from the year ago quarter was driven primarily by higher base rents, the impact of removing certain tenants from cash basis and higher expense recoveries.

現在讓我談談表 8 中的商業房地產部門。第二季度，CRE 收入比去年同期增長 7.6%，即 350 萬美元，達到 4950 萬美元。與去年同期相比的增長主要是由於基本租金上漲、某些租戶脫離現金制的影響以及費用回收增加。

CRE Same-Store NOI increased 4.6% or $1.3 million to $31.1 million compared to the same period last year. Excluding collections of previously reserved amounts in both 2022 and 2023, Same-Store NOI growth would have been 9.2% for the second quarter.

華潤創業同店 NOI 較去年同期增長 4.6%，即 130 萬美元，達到 3,110 萬美元。不包括 2022 年和 2023 年之前預留金額的收取，第二季度同店 NOI 增長率將為 9.2%。

Turning to land operations presented on Table 18. Adjusted EBITDA was $1.7 million in the second quarter of 2023 compared to $53 million in the same quarter last year. The change was due primarily to the $54 million gain on sale of noncore assets on the island of Kauai that occurred in the second quarter of 2022.

轉向表 18 中列出的土地業務。2023 年第二季度調整後的 EBITDA 為 170 萬美元，而去年同期為 5300 萬美元。這一變化主要是由於 2022 年第二季度出售可愛島非核心資產獲得了 5400 萬美元的收益。

G&A is highlighted on Table 2. For the second quarter of 2023, G&A expenses were $9.9 million compared to $9.3 million in the second quarter of 2022. The higher G&A was primarily a result of one-time management transition related costs.

表 2 突出顯示了一般管理費用。2023 年第二季度的一般管理費用為 990 萬美元，而 2022 年第二季度為 930 萬美元。一般管理費用較高主要是一次性管理過渡相關成本的結果。

We reported income from discontinued operations of $4.2 million in the second quarter, which is made up primarily of Grace Pacific operations. Grace remains in discontinued operations as we work to complete the sale of the entity. We continue to make progress on this goal, but we cannot provide additional details at this time.

我們報告第二季度來自已終止業務的收入為 420 萬美元，主要由格雷斯太平洋業務組成。在我們努力完成該實體的出售過程中，格雷斯仍處於已停止運營狀態。我們將繼續在這一目標上取得進展，但目前無法提供更多細節。

Turning to our balance sheet and liquidity metrics on Table 6. At June 30, 2023, total debt outstanding was $506.9 million and we had total liquidity of $441.1 million, made up of approximately $8.2 million in cash and $432.9 million available on our revolving credit facility.

轉向表6 中我們的資產負債表和流動性指標。截至2023 年6 月30 日，未償債務總額為5.069 億美元，我們的流動性總額為4.411 億美元，其中包括約820 萬美元的現金和4.329 億美元的循環信貸額度。

At quarter end, net debt to trailing 12-months consolidated adjusted EBITDA was 4.7x. For comparative purposes, we were at 2.4x last year, primarily because of the gain on the sale of the noncore assets on Kauai. Net debt to trailing 12 months consolidated adjusted EBITDA, excluding land operations, was 5.3x at the end of the quarter compared to 4.9x in the second quarter of 2022.

截至季度末，淨債務與過去 12 個月綜合調整後 EBITDA 之比為 4.7 倍。出於比較目的，我們去年的市盈率是 2.4 倍，主要是因為出售考艾島非核心資產獲得了收益。截至本季度末，過去 12 個月綜合調整後 EBITDA（不包括土地業務）的淨債務為 5.3 倍，而 2022 年第二季度為 4.9 倍。

We paid a second quarter dividend of $0.22 per share on July 5 and our Board recently declared a third quarter dividend of $0.22 per share that is payable on October 4. We are pleased with our results and are raising guidance for the year. We expect core FFO in the range of $1.10 to $1.14 per diluted share due primarily to an improvement in our outlook for CRE Same-Store NOI performance. We expect Same-Store NOI growth within the range of 2.5% to 4.25% and Same-Store NOI growth, excluding prior year reserve reversals, within a range of 5.5% to 6.75%.

我們於7 月5 日支付了每股0.22 美元的第二季度股息，董事會最近宣布將於10 月4 日支付每股0.22 美元的第三季度股息。我們對我們的業績感到滿意，並提高了今年的指導。我們預計核心 FFO 稀釋後每股價格為 1.10 美元至 1.14 美元，這主要是由於我們對華創地產同店 NOI 業績的展望有所改善。我們預計同店 NOI 增長在 2.5% 至 4.25% 範圍內，同店 NOI 增長（不包括上一年準備金轉回）在 5.5% 至 6.75% 範圍內。

With that, I'll turn the call over to Lance for his closing remarks.

接下來，我將把電話轉給蘭斯，讓他作結束語。

Thanks, Clayton. The second quarter again demonstrated the strength of our portfolio, the depth and experience of our team and the ongoing health of the Hawaii market.

謝謝，克萊頓。第二季度再次證明了我們投資組合的實力、團隊的深度和經驗以及夏威夷市場的持續健康發展。

As we look to the remainder of the year, we believe these factors will continue to drive our performance. I want to thank our entire team for their contributions to our success. I would also like to thank the team for their dedication to environmental, social and governance-related matters.

展望今年剩餘時間，我們相信這些因素將繼續推動我們的業績。我要感謝我們整個團隊為我們的成功做出的貢獻。我還要感謝團隊對環境、社會和治理相關事務的奉獻。

Today, we focused on our operational results. But our fourth annual corporate responsibility report will be published in August highlighting our commitment to ESG, and I'm just as proud of what we have accomplished for partners for Hawaii.

今天，我們重點關注我們的運營業績。但我們的第四份年度企業責任報告將於 8 月發布，強調我們對 ESG 的承諾，我同樣為我們為夏威夷合作夥伴所取得的成就感到自豪。

Finally, as you know, this is my first earnings call as CEO. I want to thank Chris Benjamin for his friendship and mentorship over the many years that we have worked together and thank the Board for the opportunity to lead this fantastic team into the future. With that, we'll now open the call up to questions.

最後，如您所知，這是我作為首席執行官的第一次財報電話會議。我要感謝克里斯·本傑明（Chris Benjamin）多年來對我們的友誼和指導，並感謝董事會給予我機會帶領這支出色的團隊走向未來。現在，我們將開始提問。

(Operator Instructions) At this time, we will take our first question, which will come from Alexander Goldfarb with Piper Sandler.

（操作員說明） 此時，我們將提出第一個問題，該問題將由 Alexander Goldfarb 和 Piper Sandler 提出。

So just a few questions, and I think it was part of your no comment, but I have to ask. The latest on Grace and do you feel comfortable that it will be exited by year-end? Or do you think this will drag into next year?

所以只有幾個問題，我認為這是你不發表評論的一部分，但我必須問。 Grace 的最新消息，您對年底前退出感到滿意嗎？或者你認為這會拖到明年嗎？

This is Lance. So we are still engaged in a formal process with Grace. So I can't comment specifically on buyers' price or timing for the integrity of that process. But what I can say is that the disposition of the Grace business is an absolute priority for us.

這是蘭斯。因此，我們仍在與 Grace 進行正式流程。因此，我無法具體評論買家的價格或該流程完整性的時間安排。但我可以說的是，處置格雷斯業務是我們的絕對優先事項。

Okay. Okay. The next question, I think you guys said your signed but not yet open is about $3 million, which in sort of rough numbers sounded like it was the same that it was previously. A number of your peers that signed but not yet commenced seems to grow every quarter. And I'm just curious, given the strong portfolio performance that you guys talked about, the fact that I think you still have like 25% or something of the top 20 or top 30 retailers on the Mainland, not yet in Hawaii, I would expect that number to sort of grow. So maybe you could just talk a little bit more about the signed but not yet commenced, maybe you're just putting people in spaces much quicker. So that delayed pipeline just doesn't grow because you're quicker at leasing? Or maybe there are just other dynamics in there?

好的。好的。下一個問題，我想你們說你們已簽約但尚未開放的金額約為 300 萬美元，粗略數字聽起來與之前相同。許多已簽約但尚未開始的同行似乎每個季度都在增長。我只是很好奇，考慮到你們談到的強勁的投資組合表現，事實上，我認為你們仍然擁有大陸前 20 名或前 30 名零售商的 25% 左右，但尚未在夏威夷，我想預計這個數字會有所增長。所以也許你可以多談談已簽署但尚未開始的事情，也許你只是讓人們更快地進入空間。那麼延遲的管道就不會因為您的租賃速度更快而增加？或者也許還有其他動力在裡面？

Yes. Maybe I'll start with just the general comment, and then I'll ask Kit to provide some color. So -- our $3.1 million of SNO for Q2 is about the same year-over-year, but it did improve pretty dramatically sequentially. And so just with that general statement, Kit, maybe you can provide some additional color.

是的。也許我會從一般性評論開始，然後我會要求 Kit 提供一些顏色。因此，我們第二季度的 310 萬美元 SNO 與去年同期大致相同，但確實連續顯著改善。因此，基特，通過一般性陳述，也許您可​​以提供一些額外的顏色。

So the spread between leased and economic, it's a really healthy 190 basis points right now, and that is up 40 basis points sequentially. So it was $2.3 million in Q2, and it's now $3.1 million. So that is pointing to some significant ABR that's coming online in the next few months. And to your question about retailers that are not here yet, we're engaged in many discussions with many different retailers. We have brought on some new ones in the recent past, ones like Chick-fil-A, and we continue to do so. And we're seeing some strong interest from some other anchors in the market.

因此，租賃和經濟之間的利差目前非常健康，為 190 個基點，比上一季度上升了 40 個基點。第二季度的收入為 230 萬美元，現在為 310 萬美元。因此，這表明一些重要的 ABR 將在未來幾個月內上線。至於你關於尚未到場的零售商的問題，我們正在與許多不同的零售商進行多次討論。我們最近引進了一些新產品，例如福來雞，並且我們將繼續這樣做。我們看到市場上其他一些主播也表現出強烈的興趣。

Okay. And just the final question is insurance has definitely been a big topic in REIT land. We don't hear much about what's going on in Hawaii on the insurance market. But just curious what you guys are seeing both from the property level and then from your tenants. So, meaning obviously, you guys have an ability to absorb insurance increases, I would imagine better than your mom and pops, and clearly, you need viable mom-and-pops. So just want to get a sense from A&B's perspective, what you guys are seeing on property insurance premiums and renewals? And then two, what your tenants are seeing in as far as their ability to sustain that or if there's a way for you guys using the corporate wrapper to sort of help provide economies of sale, if you will, to be able to bought -- for the tenants to buy insurance via your wrapper.

好的。最後一個問題是，保險無疑是房地產投資信託基金領域的一個大話題。我們對夏威夷保險市場的情況了解不多。但只是好奇你們從房產層面和租戶層面看到了什麼。所以，顯然，你們有能力吸收保險增長，我想比你們的媽媽和爸爸更好，而且顯然，你們需要可行的媽媽和爸爸。所以想從 A&B 的角度了解一下，你們對財產保險保費和續保的看法如何？然後第二個，你的租戶看到他們維持這種能力的能力，或者你們是否有辦法使用公司包裝來幫助提供銷售經濟，如果你們願意的話，能夠購買——讓租戶通過您的包裝購買保險。

So with respect to insurance, that is a cost that -- significant cost that is part of our overall property operations. And like everyone else, we are monitoring what's happening with the insurance rates in general. We are currently in a position where I think, overall, it hasn't had an impact to our historical results, but what I would say is that we are closely monitoring. We are hearing. We have our agents out there that are helping us keep apprised of trends. And so that's something that we will continue to manage our way through.

因此，就保險而言，這是一項重大成本，是我們整體財產運營的一部分。和其他人一樣，我們正在監控保險費率的總體變化。我認為，我們目前所處的位置，總體而言，這並沒有對我們的歷史業績產生影響，但我想說的是，我們正在密切關注。我們正在聽。我們有我們的代理商幫助我們了解趨勢。因此，我們將繼續努力解決這個問題。

And what about your tenants? Are they having any challenges with insurance or it's really not the issue that is out there that we see on the mainland?

那麼你的租戶呢？他們在保險方面是否遇到任何挑戰，或者這確實不是我們在大陸看到的問題？

So I think nobody is immune to it, for sure. And at the portfolio level, we have done a lot to restructure and look at different ways to take advantage of that sale. Cost structure overall, we've heard, is an issue for tenants. And that's been true for the past year or so. But the good news is that customer traffic is significantly up. It's up 7% over last year, and that's translated into higher tenant sales in both in terms of anchors as well as our in-line tenants.

所以我認為肯定沒有人能倖免。在投資組合層面，我們做了很多重組工作，並尋找不同的方式來利用這次銷售。我們聽說，總體成本結構對租戶來說是一個問題。過去一年左右的時間都是如此。但好消息是客戶流量顯著增加。比去年增長了 7%，這轉化為主力租戶和一線租戶的租戶銷售額的增加。

And our next question will come from Mitch Germain with JMP Securities.

我們的下一個問題將來自 JMP 證券公司的 Mitch Germain。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

Sorry about that. My apologies. I'm curious about leasing trends. I guess it probably is a little bit of mix, but some of the spreads declined quarter-over-quarter. Is there anything to read into there? Or is it really just mix of leases that rolled?

對於那個很抱歉。我很抱歉。我對租賃趨勢很好奇。我想這可能有點混合，但一些利差逐季下降。那裡有什麼值得讀的嗎？或者它真的只是滾動租賃的組合？

I'll let Kit maybe get into some of the details on spreads specifically, Mitch. But what I would say is the strength of the leasing market continues. We had good activity in 2022. We had good activity in Q1. And in Q2, we had very strong activity just in terms of total number of leases signed, ABR, GLA. And in real time, as we've talked about in the past, just through our lease committee process that we use on a weekly basis, we do get sort of real-time visibility into demand. And I would say that tenant demand for space remains strong. So maybe with that backdrop, Kit, you can speak specifically to spreads.

米奇，我會讓基特詳細了解點差的一些細節。但我想說的是，租賃市場的強勁勢頭仍在繼續。我們在 2022 年有很好的活動。我們在第一季度有很好的活動。在第二季度，就簽署的租賃總數、ABR、GLA 而言，我們的活動非常強勁。正如我們過去所討論的那樣，通過我們每週使用的租賃委員會流程，我們確實可以實時了解需求。我想說，租戶對空間的需求仍然強勁。因此，基特，也許在這樣的背景下，您可以專門談談利差。

Sure. So we exceeded expectations overall in terms of volume, GLA, ABR and spread. About 65% of the deals in the quarter were in the retail portfolio. And what we're really, really happy about is that new deal volume has been significant and far higher than we anticipated and that points to future gains in economic occupancy.

當然。因此，我們在數量、GLA、ABR 和價差方面總體超出了預期。本季度約 65% 的交易屬於零售投資組合。我們真正非常高興的是，新交易量非常大，遠遠高於我們的預期，這預示著未來經濟入住率的增長。

Okay. That's super helpful. How would you characterize the activity at that newly vacant property that you referenced?

好的。這非常有幫助。您如何描述您提到的新空置房產的活動？

Yes. So just by way of some background, Kaka'ako Commerce Center is -- it's about a 200,000 square foot industrial building that we own in urban Honolulu. It's a multi-story facility. So while it is 5 of the 6 floors are industrial, the sixth floor was converted quite some time ago, pre-acquisition for us, to office. And that's where the vacancy occurred. So we had about 25,000 square feet with this single tenant, which represented about 12.5% of vacancy to the building, and you can see it flowing through the industrial asset class as well as the portfolio.

是的。就背景而言，卡卡阿科商業中心是我們在檀香山市區擁有的一座約 200,000 平方英尺的工業建築。這是一個多層設施。因此，雖然 6 層中有 5 層是工業層，但第六層在我們購買前不久就被改造成辦公室。這就是空缺發生的地方。因此，我們擁有約 25,000 平方英尺的單一租戶，約佔該建築空置率的 12.5%，您可以看到它流經工業資產類別和投資組合。

The office market here is stable, but I wouldn't say it's certainly not as strong as industrial. So we will likely have to -- it will take a little bit of time for us to backfill the space from what is our preferred use, which would be a backfill of an office tenant, but we would consider converting that space to other uses depending on tenant demand.

這裡的寫字樓市場很穩定，但我不會說它肯定不如工業市場那麼強勁。因此，我們可能需要花一點時間來回填我們首選用途的空間，這將是辦公室租戶的回填，但我們會考慮將該空間轉換為其他用途，具體取決於根據租戶的需求。

Super helpful. Last question on guidance. If I'm correct, you've done $0.29 for the last 2 quarters. If I just look at annualizing that number, it looks like it's going to trend above the high end of your core FFO range. What am I missing in the back part of the year that could bring the numbers down?

超級有幫助。關於指導的最後一個問題。如果我沒猜錯的話，您在過去 2 個季度的收入為 0.29 美元。如果我只看一下該數字的年度化，它看起來會高於核心 FFO 範圍的高端。今年下半年我錯過了什麼可能會導致數字下降？

Hi Mitch, it's Clayton. So as far as our core FFO, we have commented when we provided our original guidance that there are a couple of different factors that are influencing our overall results for this year, one of which is G&A. There is also impact of the reserve reversals that occurred in last year. And so as we look forward to the second half of the year, there is still some level of uncertainty. And I think that in terms of our ability to execute on the second half, those factors will continue to affect our overall results. And -- but on the whole, the fact that we had our performance year-to-date and second quarter for Same-Store NOI, we felt good about where we are trending. And as a result, we had increased the core FFO guidance to where we ended up.

嗨，米奇，我是克萊頓。因此，就我們的核心 FFO 而言，我們在提供最初的指導時表示，有幾個不同的因素正在影響我們今年的整體業績，其中之一就是一般管理費用。去年發生的準備金轉回也產生了影響。因此，當我們展望下半年時，仍然存在一定程度的不確定性。我認為，就我們下半年的執行能力而言，這些因素將繼續影響我們的整體結果。而且，但總的來說，事實上，我們今年迄今和第二季度的同店 NOI 表現，我們對我們的趨勢感到滿意。因此，我們將核心 FFO 指南提高到了最終目標。

Okay. That's helpful. So it just appears as if you're just baking some conservatism on the macro backdrop for now, and let the year progress and revisit as each quarter as you proceed. Is that the way to think about it?

好的。這很有幫助。因此，看起來你現在只是在宏觀背景下採取一些保守主義，然後讓這一年繼續前進，並在每個季度重新審視。是這樣思考的嗎？

Yes. I think that's fair.

是的。我認為這是公平的。

And this concludes our question-and-answer session. I'd like to turn the conference back over to Steve Swett for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給史蒂夫·斯威特（Steve Swett）做總結髮言。

Thank you, operator, and thank you all for joining us today. If you have any follow-up questions, please feel free to call us at (808) 525-8475 or e-mail us at investorrelations@abhi.com. Aloha, and have a great day.

謝謝運營商，也感謝大家今天加入我們。如果您有任何後續問題，請隨時致電 (808) 525-8475 或發送電子郵件至 Investorrelations@abhi.com。阿羅哈，祝你有美好的一天。

The conference has now concluded. Thank you very much for attending today's presentation. You may now disconnect your lines, and have a great day.

會議現已結束。非常感謝您參加今天的演講。您現在可以斷開線路，祝您有美好的一天。