Alexander's Inc (ALX) 2024 Q3 法說會逐字稿

Good day, and welcome to the Vornado Realty Trust third-quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the over to Stephen Borenstein, Senior Vice President and Corporate Counsel. Please go ahead.

美好的一天，歡迎參加 Vornado Realty Trust 2024 年第三季財報電話會議。（操作員說明）請注意，正在記錄此事件。我現在想將權力移交給資深副總裁兼公司法律顧問 Stephen Borenstein。請繼續。

Welcome to Vornado Realty Trust's third-quarter earnings call. Yesterday afternoon, we issued our third-quarter earnings release and filed our quarterly report on 10-Q with the Securities and Exchange Commission. These documents as well as our supplemental financial information packages are available on our website, www.vno.com, under the Investor Relations section.

歡迎參加沃納多房地產信託公司第三季財報電話會議。昨天下午，我們發布了第三季財報報告，並向美國證券交易委員會提交了 10 季的季報。這些文件以及我們的補充財務資訊包可在我們的網站 www.vno.com 的投資者關係部分取得。

In these documents and during today's call, we will discuss certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings Form 10-Q and financial supplement. Please be aware that statements made during this call may be deemed forward-looking statements, and actual results may differ materially from these statements due to a variety of risks, uncertainties and other factors.

在這些文件和今天的電話會議中，我們將討論某些非公認會計準則財務措施。這些指標與最直接可比較的 GAAP 指標的調整包含在我們的損益表 10-Q 和財務補充中。請注意，本次電話會議期間所做的陳述可能被視為前瞻性陳述，由於各種風險、不確定性和其他因素，實際結果可能與這些陳述有重大差異。

Please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2023, for more information regarding these risks and uncertainties. The call may include time-sensitive information accurate only as of today's date. The company does not undertake a duty to update any forward-looking statements.

有關這些風險和不確定性的更多信息，請參閱我們向美國證券交易委員會提交的文件，包括截至 2023 年 12 月 31 日的年度 10-K 表格年度報告。該電話會議可能包含僅截至今日準確的時間敏感資訊。該公司不承擔更新任何前瞻性陳述的義務。

On the call today from management for our opening remarks comments are Steven Roth, Chairman and Chief Executive Officer; and Michael Franco, President and Chief Financial Officer. Our senior team is also present and available for questions.

今天，董事長兼首席執行官史蒂文·羅斯 (Steven Roth) 在管理層的電話會議上發表了開場白；以及總裁兼財務長邁克爾·弗蘭科 (Michael Franco)。我們的高級團隊也出席並回答問題。

I will now turn the call over to Steven Roth.

我現在將把電話轉給史蒂文·羅斯。

Thank you, Steve, and good morning, everyone. Today is Election Day in America and extra importance since this is a once and four-year presidential election. Election Day is arguably the single most important day in the calendar of democracy. Early voting participation seems to indicate that this year's turnout will be a record, and that's great.

謝謝你，史蒂夫，大家早安。今天是美國的選舉日，這一天尤其重要，因為這是四年一次的總統選舉。選舉日可以說是民主日曆中最重要的一天。早期投票參與似乎表明今年的投票率將創紀錄，這很好。

And with that said, now to the business. I've been saying in the past few quarters that the office leasing market in Manhattan is at the foothills of recovery, and I think that's becoming more and more apparent. While Manhattan has over 400 million square feet of water space, we competed a much smaller, safe 180 million square foot market of the Class A better buildings, where demand is strong, and vacancies are rapidly evaporating.

話雖如此，現在談生意。我在過去幾季一直在說，曼哈頓的辦公室租賃市場正處於復甦的山麓，而且我認為這一點正變得越來越明顯。雖然曼哈頓擁有超過 4 億平方英尺的水域空間，但我們競爭的是一個規模小得多、安全性為 1.8 億平方英尺的 A 級更好建築市場，那裡的需求強勁，但空置率正在迅速消失。

Looking at Park Avenue and Sixth Avenue now with 7% to 9% Class A vacancy, which is the very definition of a landlord's market. And the icing on the cake is that there is no sign of additional supply on the horizon. There hasn't been a major new office start in five years. The cost of the building and the cost of capital make it totally uneconomic to build. History is a guide, no new supply, always we get the landlord market. As Michael and Glen will comment in a moment, our rents are going up. I'm extremely optimistic and the stock market seems to be great.

看看公園大道和第六大道現在有 7% 到 9% 的 A 級空置率，這正是房東市場的定義。錦上添花的是，沒有任何跡象表明即將出現額外供應。五年來沒有新的大型辦公室開幕。建築成本和資金成本使得建造完全不經濟。歷史為鑑，沒有新的供應，我們總是得到房東市場。正如邁克爾和格倫稍後將評論的那樣，我們的租金正在上漲。我非常樂觀，股市似乎很棒。

Year to date, we have leased 2.5 million square feet of -- 2.5 million square feet company-wide, including 2.1 million square feet in Manhattan. As Michael and Glen will cover, activity is robust, and I am confident that we will sign between 3.5 million and 3.8 million square feet of leases this year, which would rank number two in our history. On our last call, we made mention of the deal 770 Broadway. I'm pleased to report we have agreed to a transaction with NYU for 770 Broadway. And while you would Master Lease the higher 1.1 million square foot office component, which excludes the (inaudible) with an option purchase in the 30th year and the second lease year.

今年迄今為止，我們已在全公司範圍內租賃了 250 萬平方英尺（其中 250 萬平方英尺），其中包括曼哈頓的 210 萬平方英尺。正如邁克爾和格倫將介紹的那樣，活動非常活躍，我相信今年我們將簽署 350 萬至 380 萬平方英尺的租賃合同，這將在我們的歷史上排名第二。在上次電話會議中，我們提到了 770 Broadway 的交易。我很高興地報告，我們已同意與紐約大學就百老匯 770 號進行交易。雖然您會主租賃較高的 110 萬平方英尺的辦公部分，但不包括在第 30 年和第二個租賃年購買選擇權的（聽不清楚）。

Master Lease will provide for an upfront payment of prepaid rent sufficient to pay off our $700 million loan on the property as well as an annual rent over the lease term. Both parties have signed a detailed letter of intent and expect to execute final binding figures shortly. I expect the closing and rent commencement would occur in January. We are delighted to expand our relationship with NYU.

Master Lease 將提供預付租金的預付款，足以償還我們對該物業的 7 億美元貸款以及租賃期間的年租金。雙方已簽署詳細的意向書，並預計很快將簽署最終的約束性數據。我預計交割和租金將在一月開始。我們很高興擴大與紐約大學的關係。

Our liquidity is a strong $2.6 billion, with $1 billion of cash on balance sheet. Our bill is shortly be augmented by over $1 billion from the unit close sale, NYU prepaid rent and the redemption for cash of over $500 million of our street retail preferred from proceeds of an in-process 1535 Broadway financing. Note that between unit close and 1535, we will have redeemed about half of the preferred. We will pay off our $450 million January '25 bonds in January. We have well enough cash on balance sheet to complete our leasing program for PENN1 and PENN2. And remember, we have no debt on Farley, PENN1 and PENN2.

我們的流動性高達 26 億美元，資產負債表上有 10 億美元現金。我們的帳單很快就會增加超過 10 億美元，包括單位成交、紐約大學預付租金以及從正在進行的 1535 百老匯融資收益中贖回超過 5 億美元的街頭零售現金。請注意，在單位收盤價和 1535 之間，我們將贖回大約一半的優先股。我們將於 1 月償還 25 年 1 月的 4.5 億美元債券。我們的資產負債表上有足夠的現金來完成 PENN1 和 PENN2 的租賃計劃。請記住，我們對 Farley、PENN1 和 PENN2 沒有任何債務。

Regarding our 350 Park Avenue site, arguably the very best site on Park Avenue. We are well along with the normal Forster architectural firm and completing the design of 1.8 million square foot tower. And we will build with Citadel, who will be our major tenant and with Ken Griffin as our 60% profit. At PENN15, the former Hotel Penn site, at 33rd Street at 7th Avenue, directly across the PENN2 is now down to grade and ready for development. I believe this site in the heart of our Penn District and directly connected to best station. It's the single best right available in booming website and Manhattan.

關於我們的公園大道 350 號場地，可以說是公園大道上最好的場地。我們與普通的福斯特建築公司合作順利，完成了180萬平方英尺塔樓的設計。我們將與 Citadel 一起建造，Citadel 將成為我們的主要租戶，Ken Griffin 將獲得我們 60% 的利潤。PENN15 位於第 7 大道第 33 街，位於 PENN2 的正對面，即賓夕法尼亞酒店的前址，現已平整並準備開發。我相信這個站點位於我們賓夕法尼亞區的中心，並且直接連接到最好的車站。這是蓬勃發展的網站和曼哈頓最好的單一權利。

We own one asset in San Francisco. It's roughly 1.5 million square foot, 555 California Street. In the city of tech buildings, which are struggling with city-wide vacancy at 36% and declining rents, this dominant financial services building. Its performance is quite remarkable. This year, we released 443,000 square feet at average starting rents of $110. Occupancy in the tower is 98.7%, and we haven't lost a single large tenant in all of the of the years (inaudible)

我們在舊金山擁有一項資產。面積約 150 萬平方英尺，位於加州街 555 號。在這座科技大樓林立的城市，這座占主導地位的金融服務大樓正在與全市 36% 的空置率和租金下降作鬥爭。其性能是相當可圈可點的。今年，我們推出了 443,000 平方英尺的面積，平均起租為 110 美元。大樓入住率為98.7%，多年來我們沒有失去一個大租戶（聽不清楚）

We have a history of owning the very best retail sites, with Fifth Avenue in Times Square and bringing exciting retailers down REIT H&M. We announced this quarter an important deal to bring (inaudible) to the Penn District on 34th Street. This will be their flagship store in America.

我們擁有擁有最好的零售場所的歷史，例如時代廣場的第五大道，以及 REIT H&M 帶來令人興奮的零售商。我們本季宣布了一項重要交易，將（聽不清楚）帶到 34 街的賓州區。這將是他們在美國的旗艦店。

As such the Federal Reserve who seems to a down inflation and engineered a soft landing. Having said that, the now borrowing rates remain stubbornly high and not accretive to real estate values. And capital to refinance maturing loans are overlevered [asset] is simply not available other than from the incumbent lender. But through it all, the con is growing, and our occupiers are expanding, and that's a very good thing.

因此，聯準會似乎壓低了通膨並實現了軟著陸。話雖如此，目前的借貸利率仍然居高不下，並且不會增加房地產價值。到期貸款再融資的資本被過度槓桿化[資產]，除了現有貸款人之外根本無法取得。但自始至終，騙局不斷增長，我們的佔領者不斷擴張，這是一件非常好的事情。

731 Lexington Avenue, the Bloomberg Headquarters Tower, is owned by Alexander Inc, of which [Rene's] external manager and one-third owner. In the first quarter, we extended the Bloomberg lease to 2020. In the third quarter, we financed the maturing loan on the Bloomberg H2 building.

列剋星敦大道 731 號是彭博總部大樓，由亞歷山大公司 (Alexander Inc) 擁有，該公司是[雷內]的外部經理和三分之一的所有者。第一季度，我們將彭博租約延長至 2020 年。第三季度，我們為彭博 H2 大樓的到期貸款提供了融資。

Alexander has paid the loan down by $100 million to $400 million from cash on its balance sheet. The low LTV $200 million loan was rated all AAAs, enabling us to achieve a 5% interest rate by far the lowest we have heard of in this cycle. The AAA rating, together with the quality of the credit and the quality of the building, led to the offering being 8 times oversubscribed. This refinancing will save Alexander $17 million a year.

Alexander 已用其資產負債表上的現金支付了 1 億至 4 億美元的貸款。2 億美元的低 LTV 貸款被評為所有 AAA，使我們能夠實現 5% 的利率，這是迄今為止我們在本週期聽說過的最低利率。AAA 評級，加上信用品質和建築質量，導致此次發行獲得了 8 倍的超額認購。此次再融資將為 Alexander 每年節省 1700 萬美元。

We are open to buy in the acquisitions market with very selective on the hunt for good assets at distressed prices. No business as usual here. In the cycle, lenders seem to be working out that troubled overleveraged problems with their existing borrowers with few high-quality distressed assets coming to market. Having said that, this quarter, we did acquire a $50 million loan in the fall, very interesting midtown site. We will keep on it.

我們對收購市場持開放態度，並且非常有選擇性地以低價尋找優質資產。這裡沒有一切如常。在這個週期中，貸款人似乎正在解決現有借款人的過度槓桿問題，而市場上幾乎沒有高品質的不良資產。話雖如此，本季度，我們確實在秋季獲得了 5000 萬美元的貸款，這是一個非常有趣的市中心地塊。我們會繼續下去。

While our business is substantially better and improving, we tend to be rigorous with cash management. We will likely pay approximately the same dividend last year, $0.68. In a single dividend paid in December, we expect to carry over to next year the same dividend policy of a single dividend payable at year-end. This strategy has been understood and endorsed by our main shareholders. I expect as conditions normalize, so will our dividend.

雖然我們的業務大幅改善並不斷改善，但我們傾向於嚴格現金管理。我們可能會支付與去年大致相同的股息，即 0.68 美元。在12月支付的單一股利中，我們預計將與年底支付的單一股利相同的股利政策延續到明年。這一策略得到了我們主要股東的理解和認可。我預計隨著情況恢復正常，我們的股息也會恢復正常。

Lastly, if you are an individual investor, you must tour our Penn District, and I do mean must, and I do mean tour, not just drive by. If you last visited six months ago, you must visit again, it's changed that much that quickly. The building architecture of PENN1 and PENN2 to the size, extent and quality of the amenities and the plazas and public spaces have all received universal claim from common data brokers and occupiers alike.

最後，如果您是個人投資者，您必須遊覽我們的賓州區，我的意思是必須，我的意思是遊覽，而不僅僅是開車經過。如果您上次訪問是六個月前，那麼您必須再次訪問，因為變化如此之快。PENN1 和 PENN2 的建築結構、設施、廣場和公共空間的規模、範圍和品質都得到了普通資料經紀人和占用者的普遍認可。

This was a team effort led by our senior leaders, Glen Weiss, Barry Langer, who deserved the Gold Star Awards. We are on budget here at achieving higher rents than projected, and so we will expect the returns shown on our financial statement to improve.

這是由我們的高級領導 Glen Weiss 和 Barry Langer 領導的團隊努力，他們理應獲得金星獎。我們的預算是實現比預期更高的租金，因此我們預期財務報表中顯示的回報將會改善。

Now over to Michael to cover our financials in the market.

現在請麥可介紹我們在市場上的財務狀況。

Thank you, Steve, and good morning, everyone. As expected, the financial results for the quarter were down from last year due to items that we previously forecasted. Third-quarter comparable FFO as adjusted was $0.52 per share compared to $0.66 per share for last year's third quarter.

謝謝你，史蒂夫，大家早安。正如預期的那樣，由於我們之前預測的項目，本季的財務表現低於去年。調整後的第三季可比 FFO 為每股 0.52 美元，而去年第三季為每股 0.66 美元。

This decrease was primarily attributable to lower NOI from known move-outs largely at 770 Broadway, 1290 Avenue of the Americas and 280 Park Avenue and higher net interest expense, both of which we have previously discussed. We have provided a quarter-over-quarter bridge in our earnings release and in our financial supplement.

這一下降主要歸因於已知遷出地點的 NOI 降低（主要集中在 770 Broadway、1290 Avenue of the Americas 和 280 Park Avenue）以及較高的淨利息支出（我們之前已討論過）。我們在收益發布和財務補充中提供了季度環比的橋樑。

Our outlook for comparable FFO for 2024 hasn't changed in the past couple of quarters. That being said, with the pending lease at 770 Broadway, we already have approximately 75% of the aforementioned vacant space from the move-out spoken.

我們對 2024 年可比 FFO 的展望在過去幾季沒有改變。話雖如此，由於百老匯 770 號的租約尚未確定，我們已經有大約 75% 的上述空置空間已搬出。

Now turning to leasing (inaudible) of our business. The tide has clearly shifted in the New York Class A office market. Leasing activity is strong and gaining momentum, and availabilities are declining, particularly for large blocks of space. Manhattan's leasing volume during the first three quarters of 2024 totaled 23.1 million square feet, and it looks like full-year activity will surpass 30 million square feet for the first time in five years.

現在轉向我們業務的租賃（聽不清楚）。紐約甲級辦公室市場的潮流已經明顯轉變。租賃活動強勁且勢頭強勁，而可用空間卻在下降，尤其是大面積的空間。曼哈頓 2024 年前三季的租賃量總計 2,310 萬平方英尺，預計全年租賃量將在五年內首次超過 3,000 萬平方英尺。

Strong demand for Class A space near transit, coupled with limited quality blocks of space is resulting in rents rising and concessions beginning to tick down. For Midtown vacancy for the better building as defined by CBRE is down to around 10%, with Park Avenue around 7% and Sixth Avenue at 9%.

對交通附近的甲級空間的強勁需求，加上優質空間的有限，導致租金上漲，優惠開始減少。根據 CBRE 的定義，中城較好建築的空置率已降至 10% 左右，公園大道約 7%，第六大道約 9%。

The headquarter deals are also back with more mega transactions greater than 700,000 square feet signed this year than any year since 2019. During the third quarter, 10 leases of 100,000 square feet of (inaudible) With little availability in the new trophy product, tenants have been keenly focused on what remains available in recently redeveloped buildings, which have undergone extensive transformations. PENN2 is perfectly positioned to this large tenant demand.

總部交易也回歸，今年簽署的超過 70 萬平方英尺的大型交易比 2019 年以來的任何一年都要多。第三季度，租賃了 10 份 100,000 平方英尺（聽不清楚）的新產品，租戶們一直密切關注最近重新開發的建築中剩餘的可用空間，這些建築已經經歷了廣泛的改造。PENN2 完美地滿足了這龐大的租戶需求。

Turning now to our portfolio. In the third quarter, we leased approximately 740,000 square feet of office space across our three markets. In our New York business, we have now leased more than 2 million square feet in 68 transactions during the first nine months of 2024 average starting line of $112 per square foot.

現在轉向我們的投資組合。第三季度，我們在三個市場租用了約 74 萬平方英尺的辦公空間。在我們的紐約業務中，2024 年前 9 個月，我們在 68 筆交易中租賃了超過 200 萬平方英尺，平均起價為每平方英尺 112 美元。

And during the third quarter in our New York office portfolio, we completed 454,000 square feet of leasing across 18 transactions at starting rents of $92 per square foot. We closed on a 297,000 square foot renewal with Google at 85 Tenth Avenue, solidifying this property as one of Midtown South's best and an important piece of Google Elite (inaudible) District campus and reaffirm the long-term commitments in New York.

第三季度，我們在紐約辦公大樓投資組合中完成了 18 筆交易，面積達 454,000 平方英尺，起始租金為每平方英尺 92 美元。我們與Google 完成了第十大道85 號297,000 平方英尺的更新，鞏固了該房產作為中城南區最好的房產之一和Google 精英（聽不清）區校園的重要組成部分，並重​​申了在紐約的長期承諾。

We have a unique window in the tech sector activity given our leading position as landlords to the big four technology companies in New York as well as many others. And as we indicated on our last call, sector demand is coming back strong in New York and more in the works in our portfolio, particularly in PENN.

鑑於我們作為紐約四大科技公司以及許多其他公司的業主的領先地位，我們在科技行業活動中擁有獨特的窗口。正如我們在上次電話會議中指出的那樣，紐約的行業需求正在強勁回歸，我們的投資組合中的更多項目，尤其是賓州大學。

At PENN1, we leased 70,000 square feet at an average starting rent of $119 per square foot, led by our 55,000 square foot new headquarters leased with Roivant Sciences. These are historic rents for this building and district and validate our original redevelopment thesis.

在 PENN1，我們以每平方英尺 119 美元的平均起始租金租用了 70,000 平方英尺，其中與 Roivant Sciences 租賃的 55,000 平方英尺新總部最為領先。這些是該建築和地區的歷史租金，驗證了我們最初的重建理論。

As we commenced the transformation of PENN1, we have now completed more than 1 million feet of leasing at $92 per square foot, with a significant mark-to-market increase. We are well on our way to achieving our original aspiration as the Penn District campus continues to attract new tenants from across the city at ever bring -- recent rents. Our market lead amenity-rich offerings coupled with our complete transformation of the entire neighborhood has put our properties in the leasing bullseye for tenants seeking a quality space.

當我們開始對 PENN1 進行改造時，我們現在以每平方英尺 92 美元的價格完成了超過 100 萬英尺的租賃，並按市場價格計算有顯著增長。我們正在順利實現我們最初的願望，因為賓州區校園不斷吸引來自全市各地的新租戶——最近的租金。我們市場領先的設施豐富的產品，加上我們對整個社區的徹底改造，使我們的房產成為尋求優質空間的租戶的租賃靶心。

Our reported New York office cash mark-to-market for the quarter were negative 7%. But that's not the real story. This is because several of the leases signed at PENN1 during the quarter, but for a space that has been baked for more than nine months and therefore, not considered both second-generation relet space, used to calculate our reported mark-to-market statistics. Additionally, the quarter included a 297,000 square foot lease, 148,000 feet of share, where we exchanged improvement allowance for a reduction in rent.

我們報告的本季紐約辦事處現金市價為負 7%。但這不是真實的故事。這是因為本季度在 PENN1 簽署了幾份租約，但空間已經烘烤了九個多月，因此不被視為第二代轉租空間，用於計算我們報告的按市價統計數據。此外，本季還包括 297,000 平方英尺的租賃，148,000 英尺的份額，我們以改善津貼換取租金的減少。

As indicated on page 17 of our financial supplement, if you were to include these leasing transactions and our cash mark-to-market statistics, the negative 7% would be a positive 17.9%. Including the lease at 770 Broadway, which Steve mentioned, our New York pipeline is robust and consists of 2.8 million square feet of leases in various stages of negotiation. This includes multiple tenant headquarter deals at our transformed PENN2. We currently project to finish 2024 with almost 3.8 million square feet leased across our portfolio, which would be our highest volume since 2014 and then our highest average starting rents ever.

正如我們財務補充資料第 17 頁所示，如果將這些租賃交易和我們按市值計價的現金統計數據包括在內，則負 7% 將變為正 17.9%。包括史蒂夫提到的百老匯 770 號的租賃在內，我們在紐約的管道很強勁，包括處於各個談判階段的 280 萬平方英尺的租賃。這包括我們改造後的 PENN2 的多個租戶總部交易。目前，我們預計到 2024 年，我們的投資組合將出租近 380 萬平方英尺的面積，這將是我們自 2014 年以來的最高租賃量，也是我們有史以來最高的平均起始租金。

Our current office occupancy is %87.5 down from 89.3% last quarter primarily due to the previously announced med expiration at 770 Broadway. The easiest money we can make is filling up our (inaudible) As occupancy rises, our earnings go up. With pending full building master lease at 770, our office occupancy increases by 30 basis points to 90.8%. Depending on the timing of futures of these transactions, our office occupancy will likely decrease in first quarter 2025 as the vacant space at PENN2 is placed into service. We anticipate this decrease will be temporary, and as PENN2 stabilizes, we get to the 90 grades.

我們目前的辦公室入住率為 87.5%，較上季的 89.3% 下降，主要是由於先前宣布的百老匯 770 號的醫療到期。我們能賺到的最簡單的錢就是填滿我們的（聽不清楚）隨著入住率的增加，我們的收入也會增加。由於整棟大樓的總租賃量為 770，我們的辦公室入住率增加了 30 個基點，達到 90.8%。根據這些交易的未來時間，隨著 PENN2 的空置空間投入使用，我們的辦公室入住率可能會在 2025 年第一季減少。我們預計這種下降將是暫時的，隨著 PENN2 穩定，我們將達到 90 分。

Turning to San Francisco at 555 California, we closed a 46,000 square foot renewal and expansion deal with Wells Fargo during the quarter, and we currently have renewals out for another 283,000 square feet. Our leasing program at 555 is by far outpacing the entire market as leading financial services companies can be attracted to the property's premier quality into our new 555 work life amenity program similar to what we have done in New York. While tenant concessions are up here, too, every one of our renewal rental has been positive mark-to-market or flat in an otherwise weak San Francisco office market, demonstrating unique cache in this unique property.

轉向舊金山 555 California，我們在本季度與富國銀行達成了 46,000 平方英尺的更新和擴建協議，目前我們還有另外 283,000 平方英尺的更新。我們在 555 的租賃計劃遠遠超過了整個市場，因為領先的金融服務公司可以被該物業的一流品質吸引到我們新的 555 工作生活便利計劃中，類似於我們在紐約所做的那樣。雖然這裡的租戶優惠也有所增加，但我們的每一份續租租金都按市值計價或持平，而舊金山辦公室市場本來就疲軟，這證明了這一獨特房產的獨特優勢。

At the Mart in Chicago, we closed on 15 leases during the quarter, totaling 239,000 square feet headlined by an important expansion and renewal of Medline, a worldwide leader in the health care industry for 161,000 square feet. Medline's enormous growth in Chicago is particularly noteworthy and the transaction is a major bright spot for both us and the overall market. The Mart continues to outperform the market and attract top-tier tenants, driven by our strong debt-free sponsorship and recent amenity additions, which have reaffirmed its leading position in the marketplace.

在芝加哥的 Mart，我們在本季完成了 15 項租賃，總面積為 239,000 平方英尺，其中包括 Medline 的重要擴建和更新，Medline 是醫療保健行業的全球領導者，佔地 161,000 平方英尺。Medline 在芝加哥的巨大成長尤其值得關注，這筆交易對我們和整個市場來說都是一大亮點。在我們強大的無債務贊助和最近新增的便利設施的推動下，The Mart 的表現繼續跑贏市場並吸引頂級租戶，這重申了其在市場中的領先地位。

Turning to the capital markets now. While the financing markets remain changing for office, we are beginning to see some encouraging signs. While banks remain out of the market, the CMBS market has reopened for Class A New York City office buildings as evidenced by our recent $400 million financing on 731 Lexington office at 5.04%, the lowest rate achieved for CMBS office financing post-COVID.

現在轉向資本市場。儘管辦公室融資市場仍在發生變化，但我們開始看到一些令人鼓舞的跡象。儘管銀行仍退出市場，但紐約市甲級辦公室的CMBS 市場已重新開放，我們最近以5.04% 的利率為列剋星敦731 號辦公室提供4 億美元融資就證明了這一點，這是新冠疫情后CMBS辦公大樓融資的最低利率。

And the $3.5 billion financing for Ross Center and $750 million financing for 277 Park Avenue. And there are several billion dollars more in the pipeline. These financings show investors are once again constructive on office and assets can get financed in size, albeit on conservative metrics and loan structures.

羅斯中心融資 35 億美元，公園大道 277 號融資 7.5 億美元。還有數十億美元正在籌劃中。這些融資顯示投資者再次對辦公大樓和資產獲得建設性融資，儘管指標和貸款結構比較保守。

With short dates finally coming down and the SOFR-curve projected to come down significantly over the next year, both the financing markets and borrowing rates should continue to improve, and value should follow. The investment sales market is also beginning to perk up. There have been a number of older obsolete buildings sold the residential conversion, which will take supply out of the market. And the first Class A buildings sold this cycle, 799 Broadway was recently put under contract at a 5% cap rate for $255 million or $1,400 per square foot, which is strong pricing.

隨著短期最終下降，SOFR 曲線預計將在明年大幅下降，融資市場和借款利率應繼續改善，價值也應隨之改善。投資銷售市場也開始活躍。已經有一些較舊的廢棄建築被出售為住宅改建，這將導致市場供應減少。作為本週期出售的第一批甲級建築，百老匯 799 號最近以 5% 的上限利率簽訂了合同，售價為 2.55 億美元或每平方英尺 1,400 美元，這是一個強勁的定價。

Our balance sheet is in excellent condition with strong liquidity of $2.6 billion, including $1 billion of cash and restricted cash and $1.6 billion undrawn and our $2.17 billion revolving credit facilities. We have taken care of our significant 2024 maturities and are making good progress on our 2025 maturities.

我們的資產負債表狀況良好，流動性強勁，達 26 億美元，其中包括 10 億美元現金和限制性現金、16 億美元未提取資金以及 21.7 億美元循環信貸額度。我們已經處理了 2024 年的重要到期日，並在 2025 年的到期日上取得了良好進展。

Despite the success we've had recently extending our loans with existing lenders, while refinancing our loans in the midst of this more challenging environment. We do still have a handful of credits that are overlevered. Most of these assets do not contribute to our FFO right now and have a little no equity value.

儘管取得了成功，我們最近還是向現有貸方延長了貸款期限，同時在這個更具挑戰性的環境中為我們的貸款進行了再融資。我們仍然有一些信貸被過度槓桿化。這些資產中的大部分目前並沒有為我們的 FFO 做出貢獻，也幾乎沒有股權價值。

We will maintain our discipline and unless these loans are restructured on terms that allow us to put the assets on down footing, similar to what we previously negotiated at 280 Park and St. Regis retail, we will not invest any more capital in these sells, the non-recourse nature of these loans provided us with this option.

我們將維持我們的紀律，除非這些貸款的重組條款使我們能夠讓資產處於穩定狀態，類似於我們之前在280 Park 和瑞吉零售業談判的內容，我們將不會在這些出售中投入更多資本，這些貸款的無追索權性質為我們提供了這種選擇。

With that, I'll turn it over to the operator for Q&A.

這樣，我會將其轉交給接線員進行問答。

(Operator Instructions)

（操作員說明）

John Kim, BMO Capital Markets.

約翰金 (John Kim)，BMO 資本市場。

Good orning. Steve, you mentioned the leasing activity that you've done year to date, 2.5 million square feet. And what you anticipate for the remainder of the year, which sort of imply other $1 million to $1.3 million. Does that include the NYU lease or is that separate?

早安.史蒂夫，您提到了今年迄今為止您進行的 250 萬平方英尺的租賃活動。以及您對今年剩餘時間的預期，這意味著另外 100 萬至 130 萬美元。這包括紐約大學的租約還是單獨的？

Yes, it does.

是的，確實如此。

Okay. Can you provide any more details on that when the lease or occupancy starts at 770 Broadway? And I know it's a structured deal with the upfront payments and the purchase option. But how does the overall rents compare to the $115 that's in place today?

好的。您能否提供有關百老匯 770 號何時開始租賃或入住的更多詳細資訊？我知道這是一項涉及預付款和購買選項的結構化交易。但與目前 115 美元的整體租金相比，情況如何？

Well, the upfront prepaid rent is significant. And therefore, there's a small tail of value that rent will cover. So it's substantially lower. It's not $100 a foot. But when you take into account the prepaid rent and capitalize that as a value the rent is approximately the number you have in your mind.

嗯，預付租金是相當可觀的。因此，租金將涵蓋一小部分價值。所以它要低得多。這不是每英尺 100 美元。但是，當您考慮到預付租金並將其資本化為一個值時，租金大約是您心中的數字。

And when does occupancy start?

什麼時候開始入住？

Say that again?

再說一次？

The occupancy of the building, when does that contribute to FFO.

建築物的佔用率何時對 FFO 產生影響。

The closing will -- is expected to be in January. The rent will commence in January. The funds will transfer in January. So that's -- the action will be completed. The papers will be signed imminently. The closing will be in January.

預計一月完成交割。租金將從一月開始。資金將於一月轉帳。所以，行動將會完成。文件將立即簽署。交割將於一月進行。

Great. Thanks. And my second question, I know I asked multiple questions in the first time. But second question is on the March. You had increased leasing and occupancy went up. The rents have come down compared to where it was last quarter. Is that your strategy going forward is to kind of buildup occupancy with reduced rents?

偉大的。謝謝。我的第二個問題，我知道我第一次問了多個問題。但第二個問題是關於三月的。租賃量增加，入住率上升。與上季相比，租金有所下降。您未來的策略是透過降低租金來增加入住率嗎？

The key to the bar is, first of all, it's an extraordinary building. Second of all, the Chicago market is soft to very soft. The most important strategic point in the mark is now unencumbered and free and clear. So it's one of the very, very few buildings in Chicago that is well capitalized.

酒吧的關鍵在於，首先，它是一座非凡的建築。其次，芝加哥市場疲軟到非常疲軟。標記中最重要的戰略點現在不受阻礙、自由且清晰。因此，它是芝加哥極少數資本充足的建築之一。

It's the strongest financial building in the Chicago area, and that gives us an enormous amount of strategic flexibility. So we will rent in opportunistically as deals that we think are attractive come along. We are performing better than any other building in the market as the struggled market improves as it will, we will wrap up the leasing.

它是芝加哥地區最強大的金融大樓，為我們提供了巨大的戰略靈活性。因此，當我們認為有吸引力的交易出現時，我們會機會主義地出租。隨著陷入困境的市場逐漸好轉，我們的表現比市場上任何其他建築都要好，我們將結束租賃。

Steve Sakwa, Evercore ISI.

Steve Sakwa，Evercore ISI。

Yeah. Thanks. Good morning. Maybe just following up on John's question on just leasing. If we strip out the NYU lease, it sounds like there's a couple of hundred thousand to maybe 400,000 feet of other leasing. Can you maybe just speak to the pipeline and the activity that you're seeing at PENN2 today? Has that pipeline changed at all? And what's your confidence level of getting some leases signed in to before the end of the year? Thanks.

是的。謝謝。早安.也許只是跟進約翰關於租賃的問題。如果我們剔除紐約大學的租賃，聽起來好像還有幾十萬到四十萬英尺的其他租賃。您能否談談您今天在 PENN2 看到的流程和活動？這條管道有什麼變化嗎？您對在年底前簽署一些租約的信心有多大？謝謝。

Hi, Steve, it's Glen. So there's actually a lot more leases out over $1 billion while you deal, 600,000, 700,000 feet of paper, we have leases in negotiation. All of which I closed during the fourth quarter, number one. Number two, as it relates to the PENN2 pipeline, it is robust with very -- many, many important transactions.

嗨，史蒂夫，我是格倫。因此，當你交易時，實際上還有更多超過 10 億美元的租賃，600,000、700,000 英尺的紙張，我們正在談判租賃。所有這些都是我在第四季度關閉的，第一。第二，因為它與 PENN2 管道相關，所以它對於非常多重要的交易來說是穩健的。

We expect to go to lease twp or three of those during 4Q. We are in full swing as -- less of less blocks are available in the market, particularly in this type of quality at this location with the amenity program we put together. We're now in the fifth year and more to come.

我們預計第四季將租賃其中的兩倍或三倍。我們正全力以赴，因為市場上可用的街區越來越少，特別是在這個地點的這種品質以及我們整合的便利設施計劃中。我們現在已經是第五年了，未來還會有更多年。

I just want to add both John's comments in your comments implied there's not that much more leasing when you add in what we've done year to date and why you -- I think the math you guys are doing is inaccurate, right? I think both Steve and I commented, we expect to as much as $3.8 billion, which signed -- and that's in New York, right? We've signed about two to one year-to-date through three quarters.

我只想在您的評論中添加約翰的評論，暗示當您添加我們今年迄今為止所做的事情時，並沒有更多的租賃以及為什麼您 - 我認為您正在做的數學不准確，對吧？我想史蒂夫和我都評論過，我們預計簽署的金額將高達 38 億美元——那是在紐約，對嗎？到目前為止，我們已經在三個季度內簽署了大約兩到一年的合約。

So if you take that NYU, as Glen said, there's another 600,000 plus in papers and the pipelines deeper beyond that. So I think you hear a level of enthusiasm and confidence from us that is sort of as high as it's been a long time given the activity we have.

因此，如果你以紐約大學為例，正如格倫所說，還有另外 60 萬多篇論文和更深層的管道。因此，我認為您從我們這裡聽到了一定程度的熱情和信心，考慮到我們開展的活動，這種熱情和信心是很長一段時間以來最高的。

Great. Thanks for that clarification, Michael. Maybe second question. Steve, I think test quarter after the Uniqlo sale, you mentioned you may explore some other street retail sales. Just kind of where are you on that front? And has your thinking changed at all? And has the appetite from some of the luxury retailers changed at all?

偉大的。感謝您的澄清，邁克爾。也許是第二個問題。史蒂夫，我認為優衣庫促銷後的測試季度，你提到你可能會探索其他一些街頭零售。只是你在這方面處於什麼位置？你的想法有改變嗎？一些奢侈品零售商的興趣是否改變了？

The appetite continues to be strong. We have no news to report in that regard. But I think the interesting thing is that -- and I said it in the script, that by the end of this year or into January, we will have monetized half of the $1.8 billion retail preferred at par. So if you remember back a year or so ago, analysts were predicting that the preferred was -- were substantially live on par. So the big story this quarter is the balance sheet.

食慾依然旺盛。我們沒有這方面的消息可報道。但我認為有趣的是——我在劇本中說過，到今年年底或一月份，我們將以面額將 18 億美元零售優先股的一半貨幣化。因此，如果你還記得大約一年前，分析師預測首選是——基本上處於同等水平。因此，本季的大事是資產負債表。

So we're monetizing the balance sheet. Our cash balances by more than $1 billion very shortly. We will pay off $450 million of our bonds. And we will end up, for example, the NYU deal reduces our debt by $700 million. So when you put it all together, Michael, what's the math?

所以我們正在將資產負債表貨幣化。我們的現金餘額很快就會超過 10 億美元。我們將償還 4.5 億美元的債券。例如，我們最終會因為紐約大學的交易而減少 7 億美元的債務。那麼，當你把所有這些放在一起時，邁克爾，數學是什麼？

I think we'll end up paying off a little over $1.1 billion of debt and increased cash on our balance sheet, north of $600 million.

我認為我們最終將償還略高於 11 億美元的債務，並增加資產負債表上的現金，超過 6 億美元。

So that's very substantial. So we're definitely in finding mode. With respect to selling more of the retail, which was, I think, your main question, there is activity. The retail values have been validated multiple times, and we will react opportunistically to opportunities as they come along.

所以這是非常重要的。所以我們肯定處於尋找模式。關於銷售更多零售業務，我認為這是您的主要問題，存在活動。零售價值已被多次驗證，我們將在機會出現時做出機會性反應。

Floris Van Dijkum, Compass Point.

弗洛里斯·範迪庫姆，羅盤點。

Hey. Good morning, guys. Following up on Steve's question in detail. I don't think there was a lease that was executed in the third quarter on your retail portion. Can you talk a little bit about the demand for retail? I know you talked about Primark coming to the Penn District. Also, what are the plans on your big Macy's stores. Is that a long-term project? Or is there anything more near term coming for that space?

嘿。早安，夥計們。詳細跟進史蒂夫的問題。我認為第三季沒有對你們的零售部分執行租賃。能談談零售業的需求嗎？我知道你談到普里馬克來到賓州區。另外，你們的大型梅西百貨商店有什麼計畫。這是一個長期專案嗎？或者該領域近期還會有什麼進展嗎？

Floris, I would tell you, I think you've heard this from us the last few quarters, right? The demand from retailers is up pretty significantly from the lows. We see to see good demand across the portfolio. We're hard at work. Obviously, leasing PENN, I think bringing Primark to the district is a big win. They're excited. We're excited. We're in discussions on other retailers to bring into the district, which will continue to enhance the district. So we're very pleased about that.

弗洛里斯，我想告訴你，我想你在過去的幾個季度已經從我們這裡聽到了這一點，對吧？零售商的需求較低點大幅上升。我們看到整個投資組合都有良好的需求。我們正在努力工作。顯然，租賃 PENN，我認為將 Primark 引入該地區是一個巨大的勝利。他們很興奮。我們很興奮。我們正在討論將其他零售商引入該地區，這將繼續增強該地區的實力。所以我們對此感到非常高興。

Times Square has seen a big pickup in activity. We had a lot of discussions going there with respect to our 1540 asset. And as we look at the pipeline, there's pretty good activity across the board. We have some vacancies, the rollover, I should say, coming up on Fifth Avenue in the next couple of years, and there's dialogue there too, but that's not as imminent.

時代廣場的活動大幅增加。我們在那裡就我們的 1540 資產進行了很多討論。當我們觀察管道時，我們發現各個方面的活動都非常好。我們有一些空缺，我應該說，未來幾年第五大道上將會出現一些空缺，那裡也有對話，但這並不是迫在眉睫的。

But I would say, again, interest is up, activity up, importantly, rents is firmed and retailers are doing the sales that give them confidence to transact. So these deals take a while the big commitments, particularly on the two main blocks or submarkets, I should say -- fifth in Times Square, but the interest level continues to be there.

但我想說，興趣上升，活動增加，重要的是，租金堅挺，零售商正在進行銷售，這讓他們有信心進行交易。因此，這些交易需要一段時間的重大承諾，特別是在兩個主要街區或子市場，我應該說——時代廣場第五，但興趣水平仍然存在。

I would add that the Primark deal is -- it's a big deal coming into the PENN District. It's a favorable store. It will do great business. It's a flagship. It's a big deal. The occupancy numbers that we published for retail are actually the story behind that is, I think we published that our occupancy is (inaudible)

我想補充一點，Primark 交易對 PENN 區來說是件大事。是一家很優惠的店。它將成就偉大的事業。這是旗艦。這是一件大事。我們發布的零售入住率數據實際上是背後的故事，我認為我們發布的入住率是（聽不清楚）

It's 77%, 78%.

是77%、78%。

Okay. But that includes the (inaudible) vacancies. And if you take those out, then you get to very close to 90%. So actually, we're pretty well leased in comparison -- above the market occupancies. And the way I look at it, we're really 90% leased in the retail, not 78%. So that's the way I look at the retail. As Michael said, there is strong demand in retail retailers certainly in much better shape than it was a couple of years ago.

好的。但這包括（聽不清楚）職位空缺。如果你把它們去掉，那麼你的成功率就非常接近 90%。所以實際上，相較之下，我們的租賃情況相當不錯——高於市場入住率。在我看來，我們的零售業確實 90% 是出租的，而不是 78%。這就是我看待零售業的方式。正如麥可所說，零售零售商的需求強勁，而且狀況肯定比幾年前好得多。

As respect to a year ago, I believe, let me clarify. You mentioned Macy's. We don't have --

我相信，關於一年前的情況，讓我澄清一下。你提到了梅西百貨。我們沒有--

I meant the Manhattan Mall, of course, I apologize.

我指的是曼哈頓購物中心，當然，我很抱歉。

Yeah. We think we (inaudible)

是的。我們認為我們（聽不清楚）

Thanks for it. So Steve alluded to that, the occupancy. We have continued to put tenants in that space. Right now, we actually have Netflix doing a Squid Games pop up, which I hear is quite popular, and we'll continue to do that. On that space, which is big, a bit more complex.

謝謝你。所以史蒂夫提到了這一點，即佔用。我們繼續將租戶安置在該空間。現在，我們實際上讓 Netflix 推出了一款 Squid Games 快閃遊戲，我聽說它很受歡迎，我們將繼續這樣做。那個空間很大，也更複雜一些。

The math doesn't work to do any new permanent today. And I think that's probably going to be the case for some time. So I wouldn't wait up sit with night assuming that's going to get done in the next few months. That's going to be -- we're thinking through some broader plans there, and that's a little bit more atypical space.

今天，數學無法做出任何新的永久。我認為這種情況可能會持續一段時間。因此，假設這件事將在接下來的幾個月內完成，我不會坐以待斃。我們正在考慮一些更廣泛的計劃，這是一個更非典型的空間。

Great. And maybe a follow-up question. Your stock is trading an implied cap rate of around 6%. How do you think about raising equity and what needs to happen for you to be willing to do that at this point? Particularly as you think about your potential investment opportunities out there well?

偉大的。也許還有一個後續問題。您的股票交易隱含上限率為 6% 左右。您如何看待籌集股本以及目前需要做什麼才能讓您願意這樣做？特別是當您充分考慮潛在的投資機會時？

That's a fascinating question. First of all, we are very well capitalized. I think I said 3 or 4 minutes ago that we're bringing $1 billion of new cash in or paying down our debt. Our balance sheet is extremely strong, and we have all of the firepower that we think we need for the foreseeable future. Our capital requirements complete our lease-up in PENN1 and PENN2 and across the board are already in cash on our balance sheet without doing any more financing.

這是一個有趣的問題。首先，我們的資本非常充足。我想我三、四分鐘前說過，我們將帶來 10 億美元的新現金或償還債務。我們的資產負債表非常強勁，並且擁有我們認為在可預見的未來所需的所有火力。我們的資本需求完成了 PENN1 和 PENN2 的租賃，我們的資產負債表上已經全部變成現金，無需進行任何更多融資。

We have the lion's share of our assets in PENN1 and PENN2 and Farley, where we have met are all unfinanced. So we're extremely liquid and will (inaudible) The cap rate that you mentioned is interesting. But when I do the math, I look at what the business looks like when we leasing, and we get back to the 96%, 97% occupancy that we have traditionally had. We will get there for sure. They take a year, may take two years. So I look at the business with all of that income coming in.

我們的資產大部分位於 PENN1、PENN2 和 Farley，而我們所遇到的這些地方都沒有融資。因此，我們的流動性非常強，而且（聽不清楚）您提到的資本化率很有趣。但當我計算時，我會看看我們租賃時的業務情況，我們回到了傳統的 96%、97% 的入住率。我們一定會到達那裡。他們需要一年，可能需要兩年。所以我會關注所有收入進來的業務。

And if you look at that, we really don't need any -- we really don't need any equity. So for the moment, we have no plans of issuing equity. We are being pounded by banks who wanted right of ticket and sell stock for us, but we're really not something that we think is strategically and won't wait for the moment. If opportunities present themselves, which are super accretive and not dilutive to our current shareholders, we will sit on that. But we're not in the business of diluting our shareholders.

如果你看一下，我們真的不需要任何東西——我們真的不需要任何股權。所以目前我們還沒有發行股權的計畫。我們正受到銀行的打擊，他們想要為我們獲得門票和出售股票的權利，但我們確實不是我們認為具有戰略意義的東西，不會等待時機。如果機會出現，對我們現有的股東來說是超級增值而不是稀釋的，我們將抓住機會。但我們的業務並不是稀釋我們的股東權益。

Dylan Burzinski, Green Street Capital.

迪倫·布爾津斯基 (Dylan Burzinski)，綠街資本。

Hi, guys. Thanks for taking the questions. And I appreciate your comments on after the 1535 transaction closes on monetizing half of the preferred equity in retail JV. But just are there any other transactions? Or should we expect you guys to monetize the remaining half of that preferred equity position over the near term? Or do you guys feel like most of the sort of the low-hanging fruit there is passed after this most recent announcement?

嗨，大家好。感謝您提出問題。我感謝您在 1535 交易結束後對零售合資企業一半優先股貨幣化的評論。但有其他交易嗎？或者我們應該期望你們在短期內將剩餘的一半優先股權貨幣化？或者你們覺得在最近的公告之後，大部分容易實現的目標都已經過去了嗎？

Well, we're actually very pleased with the first half of monetizing that preferred at par. We have no current plans to attack the second half that's opportunistically, and we'll see how things go. As I said pretty extensively a moment ago, we are in a very strong capital position. And we feel that we have been equity, although we have the opportunity to raise more equity if we wanted it or need it, but we don't think at the moment we want it or do we think we need it.

嗯，我們實際上對上半年的貨幣化感到非常滿意，這是首選的。我們目前沒有機會主義地進攻下半場的計劃，我們將看看事情會如何發展。正如我剛才廣泛指出的那樣，我們的資本狀況非常強勁。我們覺得我們一直在股權，儘管如果我們想要或需要它，我們有機會籌集更多股權，但我們目前不認為我們想要它或我們認為我們需要它。

So the preferred is -- the other half of the preferred is something that we're very happy holding. As the markets turn the income coming in on that preferred now exceeds the rate of interest that we could earn on short-term debt. So we're pretty okay with it.

所以首選的是——首選的另一半是我們非常樂意持有的東西。隨著市場轉向，優先股的收入現在超過了我們可以透過短期債務賺取的利率。所以我們對此很滿意。

Thanks for the details, Steve. And then just maybe one more, if I can. On the B note acquisition, the $50 million, I mean, curious, can you kind of talk about your guys' plans there? And I know the note is currently in default along with the A note at the property. I mean, is there a plan to sort of go after this? And if so, can you kind of just talk about it a little bit more?

謝謝你的詳細信息，史蒂夫。如果可以的話，也許還可以再寫一篇。關於 B 票據收購，5000 萬美元，我的意思是，好奇，你能談談你們的計劃嗎？我知道該註釋目前與該酒店的 A 註釋一起處於預設狀態。我的意思是，有計劃來解決這個問題嗎？如果是這樣，您能多談談嗎？

I wish I could, but it's really not appropriate. So first of all, it's a very small investment. Second of all, it is interesting, and you'll all learn more about that in the next quarters. It has multiple different alternative ways that this thing go. It will possibly result, maybe even likely result in litigation, and it's just -- it's a very interesting thing, a very interesting site, and it's really not appropriate to talk about it at this call.

我希望可以，但確實不合適。首先，這是一項非常小的投資。其次，這很有趣，你們都會在接下來的幾季中了解更多。它有多種不同的替代方式。這可能會導致，甚至可能導致訴訟，只是——這是一件非常有趣的事情，一個非常有趣的網站，在這次電話會議上談論它確實不合適。

Okay. Thanks again.

好的。再次感謝。

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布，派珀·桑德勒。

Hi. Good morning. And Steve, as one of those analysts was questioning on the preferred, good to hear that you've made progress paying it off at par. So kudos to you and the team. Two questions. First, just following up on the preferred -- sorry, on the B note purchase.

你好。早安.史蒂夫，正如其中一位分析師對優先股提出質疑的那樣，很高興聽到你在按面還款方面取得了進展。向你和團隊致敬。兩個問題。首先，只是跟進首選——抱歉，是購買 B 票據。

Given it's potentially litigation was in default, can you provide any perspective on buying it at par versus discount, it would seem based on what you've described that it should be a position that would trade at a discount. But clearly, there's a rationale. So maybe you could just help us understand to what you can discuss?

鑑於其潛在的訴訟處於違約狀態，您能否提供以平價或折扣購買它的任何觀點，根據您的描述，它似乎應該是一個以折扣價交易的頭寸。但顯然，這是有道理的。那麼也許您可以幫助我們了解您可以討論的內容？

Well, thank you for the compliment, Alex. That's a very nice. Thank you. We appreciate it. With respect to the B note. I'm really not going to say any more than we have. Obviously, I'm a famously difficult buyer. And we paid par because we thought it was -- we were getting value and we were getting a position in the asset. So other than that, I don't have anything to add.

好吧，謝謝你的誇獎，亞歷克斯。這是一個非常好的。謝謝。我們很感激。關於B注。我真的不會再多說什麼了。顯然，我是出了名的難搞買家。我們支付面值是因為我們認為我們正在獲得價值並且我們正在獲得資產的位置。除此之外，我沒有什麼要補充的。

Okay. The second question is, Steve, based on how you described 555 California, and you and others have described Park Avenue. It seems like the internal office submarkets have been the leaders coming out of the pandemic and remain very strong. Just curious, years ago, you talked about Manhattan tilting to the south and to the west. And yet right now, everyone is blocking back to assets like 555 for Park Avenue.

好的。第二個問題是，史蒂夫，根據您對加州 555 號的描述，以及您和其他人對公園大道的描述。內部辦公子市場似乎是走出疫情的領頭羊，而且仍然非常強勁。只是好奇，幾年前，您談到曼哈頓向南和向西傾斜。然而現在，每個人都在阻止像公園大道 555 號這樣的資產。

Can you just discuss if you think that perhaps going forward, future VNO investment is going to focus more on the traditional submarkets and less on the new frontiers or you think that this is just for the mean time. And as the cycle recovers, those new frontier markets will once again have their place.

如果您認為未來的虛擬營運商投資可能會更專注於傳統子市場而不是新領域，或者您認為這只是暫時的，您能否討論一下？隨著週期的恢復，這些新的前沿市場將再次佔有一席之地。

Alex, I wouldn't call the west side of Manhattan when you take Hudson Yards and Manhattan West and the Penn District, that's a new frontier. That's now become a very established neighborhood. The demand from blue chip, double blue chip, triple glue chip who's established and validated.

亞歷克斯，當你考慮到哈德遜廣場、曼哈頓西區和賓夕法尼亞區時，我不會稱曼哈頓西區為新邊界。現在這裡已經成為一個非常成熟的社區。藍籌股、雙藍籌股、三膠籌股的需求已建立並驗證。

And so I think the way I look at Manhattan is the traditional Midtown market and then there's the newer there I say, better West Side market, which is actually booming. So I think we don't really own a lot of stuff in the middle. But I think I have no problem with the west side. I think the west side is great. If you're calling that new frontier. I don't think it's new frontier. I think it's very established by now.

所以我認為我看待曼哈頓的方式是傳統的中城市場，然後是我所說的更新的、更好的西區市場，它實際上正在蓬勃發展。所以我認為我們並沒有真正擁有中間的很多東西。但我認為我對西邊沒有問題。我覺得西邊很棒。如果你稱之為新領域。我不認為這是新領域。我認為現在它已經非常成熟了。

Right thinking more like meatpacking, Chelsea, that area?

正確的想法更像是肉類加工，切爾西，那個地區？

Alex, I think one of the dynamics that has happened in the last three, four months, actually, is that the market's broadened back out again. So Park Avenue is Park Avenue achieving historically higher rents, which is fantastic. We benefit from that, and we're excited about what's to come there with 350 Park. But if you look at our pipeline, it's broad. I think it's broadened out actually quite meaningfully.

亞歷克斯，我認為過去三、四個月發生的動態之一實際上是市場再次擴大。因此，公園大道的租金達到歷史最高水平，這太棒了。我們從中受益，並對 350 Park 的未來感到興奮。但如果你看看我們的管道，你會發現它很廣泛。我認為它的擴展實際上非常有意義。

There's been a real uptick there. And I think that's what you're seeing broad-based strength in the market. So I think that's an encouraging sign for the marketplace. We have activity across all of our assets. And so Meatpacking Chelsea, all those assets, not top-grade assets are seeing activity. So Google just reviewed at 85 Tenth. So I don't think I would call those submarkets dead by any stretch of the imagination. I think they're stronger than they've been in a while.

那裡的情況確實有所改善。我認為這就是您在市場上看到的廣泛優勢。所以我認為這對市場來說是一個令人鼓舞的跡象。我們的所有資產都有活動。因此，切爾西肉類加工中心，所有這些資產，而不是頂級資產，都在活躍。所以穀歌剛剛審核了第85名。因此，無論怎麼想，我都不認為這些子市場已經死亡。我認為他們比以前更強大了。

Those markets really are smaller buildings, smaller tenant markets. But for example, we own buildings -- we own a couple of buildings in the Chelsea market. The rents are $150 a foot. The rents are higher there than they are at Park Avenue. So New York is, as Michael said, is broadening out, tenants want to go into various submarkets and they're all pretty good.

這些市場實際上是較小的建築物、較小的租戶市場。但舉例來說，我們擁有建築物——我們在切爾西市場擁有幾棟建築物。租金為每英尺 150 美元。那裡的租金比公園大道高。所以紐約，正如邁克爾所說，正在擴大，租戶想要進入各個子市場，而且它們都相當不錯。

Great color. Thank you.

顏色很棒。謝謝。

Jeff Spector, Bank of America.

傑夫·斯佩克特，美國銀行。

Great. Thank you and congratulations on the quarter. just listening to the call, you've discussed -- you've laid out a lot of drivers of growth. And I'm just thinking about 2025. I know you have a deep team. I mean where are the priorities for 2025? And where do you see best time spent for opportunities?

偉大的。謝謝您並恭喜本季。剛才聽了電話會議，你們已經討論了──你們已經列出了許多成長動力。我只想到 2025 年。我知道你們有一個很有深度的團隊。我的意思是，2025 年的優先事項在哪裡？您認為在哪裡尋找機會的最佳時間？

Michael, do you want to take a shot at that?

邁克爾，你想嘗試嗎？

Sure. Good morning, Jeff, and good to have you back on the front lines with us. So in terms of priorities, I think the number one priority continues to be, like we've invested significant capital in Penn. I don't know if you've been there initially, but it is transformed. It looks phenomenal. And now it's a leasing game.

當然。早安，傑夫，很高興你回到我們的前線。因此，就優先事項而言，我認為第一要務仍然是，就像我們在賓州大學投入了大量資金一樣。我不知道你最初是否去過那裡，但它已經改變了。它看起來很驚人。現在這是一場租賃遊戲。

And you heard in the opening remarks, you heard Glen talk about the equity being significant there. We just have to execute, right? We have to lease up PENN2. We have to continue to turn over PENN1. And if we do that, I'm confident we will, you're going to see significant growth coming out of Penn. And I think you're going to see us continue to push rents up there. So that is the easiest earnings growth we can generate, we're going to.

你在開場白中聽到格倫談到股權在那裡很重要。我們只需要執行，對嗎？我們必須租用 PENN2。我們必須繼續交出PENN1。如果我們這樣做，我相信我們會的，你將看到賓州大學的顯著增長。我認為你會看到我們繼續推高那裡的租金。因此，這是我們能夠實現的最簡單的獲利成長，我們將這樣做。

Second is filling our vacancies elsewhere, which we're in the process of doing piece by piece, we have good activity across Manhattan. We have the Mart as Glen talked about, is a little more challenging market-wise, but the team is working hard there. And I think what we've done in 555 with points in process on is really, I think, breathtaking, honestly, if you focus on the stats.

其次是填補我們其他地方的空缺，我們正在一點一點地做，我們在曼哈頓各地都有很好的活動。正如格倫所說，我們的集市在市場方面更具挑戰性，但團隊正在那裡努力工作。我認為我們在 555 中所做的事情確實是令人驚嘆的，老實說，如果你關注統計數據的話。

So Penn is going to balance the vacancies. It's continued to manage our balance sheet effectively. I think we've done a very good job of working through our maturity over the last two, three years, including some of our challenging situations. We need to continue doing that.

因此，佩恩將平衡空缺。它繼續有效地管理我們的資產負債表。我認為在過去的兩三年裡，我們在成熟方面做得非常好，包括我們遇到的一些具有挑戰性的情況。我們需要繼續這樣做。

And then we've got a whole host of opportunities that are internal that we've got the seeds plan, and we have to take the next step on -- 350 Park, whether that's other opportunities in Penn. We have a few assets internally that beyond that, that are potentially repurpose or redeveloped assets that we are working on right now in terms of economics and when may be the right time there.

然後我們有很多內部機會，我們已經有了種子計劃，我們必須採取下一步——350 Park，無論這是否是賓州的其他機會。除此之外，我們內部還有一些資產，這些資產可能是我們現在正在從經濟角度重新利用或重新開發的資產，以及何時可能是合適的時機。

And then lastly is we're controlling the market for external opportunities. And I think one of the disappointing things has been that there have been low-quality office opportunities, and most of those are getting repurposed to other uses, but there really have been very little in the way of high-quality distressed office assets.

最後是我們正在控制外部機會的市場。我認為令人失望的事情之一是存在低品質的辦公機會，其中大多數都被重新用於其他用途，但高品質的不良辦公資產確實很少。

So we continue to control -- there will be some, but I don't think it's going to be a flood gates. And so we would like to be active at doing things on that front. But we have a lot internally that we can execute on that will grow the value of this company significantly over the next several years. Some are going to take longer to realize, given their development opportunities, but we think they're pretty unique.

所以我們繼續控制——會有一些，但我不認為這會成為防洪閘門。因此，我們希望在這方面積極開展工作。但我們內部有很多可以執行的事情，這將在未來幾年內顯著增加這家公司的價值。考慮到它們的發展機會，有些需要更長的時間才能實現，但我們認為它們非常獨特。

I think you can say -- and I'm happy to say that our single focus is in creating value, being financially disciplined and getting our stock price up to where we think the value is and where it should be. In order to do that, we need to keep leasing.

我想你可以說——我很高興地說，我們的唯一重點是創造價值，遵守財務紀律，讓我們的股價達到我們認為的價值和應該的水平。為了做到這一點，我們需要繼續租賃。

We need to keep improving our balance sheet and need to focus on calling out assets that we don't want, tenant -- cash and continue to work on the assets, the very significant and great asset pool that we have in creating more value out of that fixing asset pool. Hopefully, we'll find external opportunities but we have enough internal so that we can be very busy and create very significant increased values. But actually, I'm all about the stock price.

我們需要不斷改善我們的資產負債表，需要集中精力剔除我們不想要的資產，租戶——現金，並繼續對這些資產進行工作，我們擁有的非常重要和巨大的資產池，可以創造更多價值該固定資產池。希望我們能找到外部機會，但我們有足夠的內在機會，讓我們可以非常忙碌並創造非常顯著的增值。但實際上，我最關心的是股價。

Thanks. Very helpful. And my second question, can you expand on your initial comments, Dave, you mentioned it's a landlords market. I understand that technically, you're right, between demand supply in your market, it's a fair comment, I guess, from a New York City office market standpoint, when we -- brokers or others, right?

謝謝。非常有幫助。我的第二個問題，戴夫，你能否詳細闡述你最初的評論，你提到這是一個房東市場。我明白，從技術上講，你是對的，在你的市場的需求供應之間，我想，從紐約市辦公室市場的角度來看，當我們——經紀人或其他人，這是一個公平的評論，對吧？

We think about tenant allowances in free rent and more equilibrium there, more equilibrium in the market where, let's say, for the landlord, you'd be contributing less tenant allowances free rent. I mean, how do you think about that? And can you maybe just expand on that comment a little bit? Thank you.

我們考慮免費租金中的租戶津貼以及那裡的更多均衡，市場上的更多均衡，比方說，對於房東來說，您將貢獻更少的租戶津貼免費租金。我的意思是，你對此有何看法？您能否稍微擴充一下該評論？謝謝。

Thank you. A good model is the retail industry over the last five or six or seven years. So if you go back five or six years ago, Retail was toxic. Full retailers was toxic, whether it was malls or Fifth Avenue or the streets of any city, the feeling in the marketplace was that the Internet shopping was -- demolish all physical brick-and-mortar shopping and the stocks got crushed. The value got the attitude of about retail was, I mean, just toxic.

謝謝。一個很好的模式就是過去五、六、七年的零售業。因此，如果你回到五、六年前，零售業是有毒的。完整的零售商是有毒的，無論是購物中心、第五大道或任何城市的街道，市場的感覺是，網路購物摧毀了所有實體實體購物，股票被壓垮。我的意思是，零售業對這種價值的態度是有毒的。

The office industry has gone through very much the same thing over the last three or four years. COVID, work from home. Nobody is going to ever get out of there. Kitchen, get off the kitchen table of the company office. Well, all of that turns out to -- it's all passing and passing very aggressively.

在過去的三、四年裡，辦公產業經歷了非常相似的事情。新冠肺炎，在家工作。沒有人能夠離開那裡。廚房，從公司辦公室的廚房桌上下來。好吧，所有這一切都證明——這一切都是傳球，而且傳球非常激進。

So there's two things or three things going on. Number one, it's been established now that people are coming back to work and people want to come back to work and people want to be in the big cities. The second thing is that the environment has basically shut down new supply. It's totally uneconomic.

所以有兩件事或三件事正在發生。第一，現在已經確定的是，人們正在重返工作崗位，人們想要重返工作崗位，人們想要留在大城市。第二件事是環境已經基本關閉了新增供給。這完全不經濟。

The cost of building has risen significantly, and the cost of capital has risen significantly, and it's sort of like -- money is not free anymore. Money is expensive. So building a new construction and new supply has shut down. Those are two very, very constructive things for our market.

建築成本大幅上升，資本成本也大幅上升，有點像──錢不再是免費的了。錢很貴。因此，新建築和新供應的建設已經停止。這對我們的市場來說是非常非常有建設性的兩件事。

You can see if you look at Park Avenue, you look at Sixth Avenue and you look even at the west side of Manhattan, at the supply and the other thing is the market is bifurcated. There's 200 million square feet of -- you can see -- at this space in New York and is 200 million or 180 million square feet of space -- at a space in New York. The customers that we deal with, only they want to be in the better space.

如果你看看公園大道，看看第六大道，甚至看看曼哈頓西側，你會發現，在供應方面，另一件事是市場是分裂的。你可以看到，紐約的這個空間有 2 億平方英尺的空間，紐約的一個空間也有 2 億或 1.8 億平方英尺的空間。我們所服務的客戶只是想進入更好的空間。

That space is limited and the supply of that space, the vacancy in that space is evaporating very quickly. So for example, Park Avenue rents went from $80 a foot to $130 a foot almost overnight as supply shrinks. So that's a definition of a landlord market. No supply, vacancies are evaporating and significant demand.

該空間是有限的，該空間的供應、該空間的空置正在迅速蒸發。例如，隨著供應萎縮，公園大道的租金幾乎一夜之間從每英尺 80 美元漲到了每英尺 130 美元。這就是房東市場的定義。沒有供應，空缺正在消失，而需求卻很大。

The other thing is, and I made mention in this -- in my opening remarks about the Fed, there was speculation where we're going to have a recession. There has been no recession. There has been a soft landing, and our customers are enthusiastic and expanding and that's a good thing. So most of our customers are enthusiastic about their space and they want more space and they want better space. That's the landlords market.

另一件事是，我在這方面提到過——在我關於聯準會的開場白中，有人猜測我們將陷入衰退。沒有出現經濟衰退。已經實現了軟著陸，我們的客戶充滿熱情並不斷擴大，這是一件好事。因此，我們的大多數客戶都對他們的空間充滿熱情，他們想要更多的空間，他們想要更好的空間。這就是房東市場。

Michael Griffin, Citi.

邁克爾·格里芬，花旗銀行。

Great. Thanks. Maybe going back to PENN2 leasing pipeline. I know historically that submarket has been more focused on tech and media tenants. But just given maybe the limited availability that we've seen in more traditional financial services markets like Park and Sixth. Is it fair to say that there is an increasing share of that leasing pipeline that's driven by financial services or some of those more traditional office space takers?

偉大的。謝謝。也許回到 PENN2 租賃管道。我知道從歷史上看，子市場更關注科技和媒體租戶。但考慮到我們在 Park 和 Sixth 等更傳統的金融服務市場中看到的可用性可能有限。可以公平地說，金融服務或一些更傳統的辦公空間佔用者推動的租賃通路份額不斷增加嗎？

Yeah. Absolutely correct. So all types of industry sector tenants are coming to Penn, both PENN1 and PENN2, they're flooding in. law firms, financial, entertainment, tech, consulting, private equity hedge bonds. We're seeing a plethora activity from everybody and it's a game changer. I think partly that's due to the lack of quality stay available in the market, generally, but more importantly to what we've done with these buildings and what this neighborhood now feels like.

是的。絕對正確。因此，所有類型的行業租戶都來到賓州大學，包括 PENN1 和 PENN2，他們湧入。我們看到每個人都進行了大量的活動，這改變了遊戲規則。我認為部分原因是市場上缺乏優質的住宿，但更重要的是我們對這些建築所做的事情以及這個社區現在的感覺。

It's powerful. They're all coming in and astounded by what we've done, and they feel like Penn is Westside, part of Manhattan West, part of Hudson Yards. We're in a part of a new West site. And not only that, we're -- doorstep run on top of transportation, which gives us a leg up on everybody else. So it's all in the full year and as John point with what you said about tenant side, for sure.

它很強大。他們都進來了，對我們所做的事情感到震驚，他們覺得賓州是西區，是曼哈頓西區的一部分，是哈德遜城市廣場的一部分。我們位於新西區站點的一部分。不僅如此，我們還擁有交通優勢，這讓我們比其他人更有優勢。所以這都是全年的事情，正如約翰所指出的關於租戶方面的內容，這是肯定的。

Thanks, Glen. I appreciate the color there. And then, Steve, I just want to go back to your comments on trying to pivot to acquisitions and external growth and going on offense in 2025. Seems like you have the balance sheet prime to do that.

謝謝，格倫。我很欣賞那裡的顏色。然後，史蒂夫，我只想回到您關於嘗試轉向收購和外部增長以及在 2025 年繼續進攻的評論。看起來你的資產負債表足以做到這一點。

But as you look at your opportunity set, is it more kind of on the distressed debt side? Would you prefer to purchase assets outright? And then can you give us a sense of what you might be underwriting to in terms of return hurdles or from an IRR perspective, that would be great.

但當你審視你的機會集時，你會發現不良債務方面是否更有利？您願意直接購買資產嗎？然後，您能否讓我們了解一下您可能在回報障礙或內部收益率方面承保的內容，那就太好了。

Griffin, it's Michael. We are little opportunist, whether it comes through the debt or outright asset purchase, we're open to both. It's obviously easier to buy the assets outright than having to work through the debt. But in some cases, that the opportunity is through the debt. And I think a lot will be debt driven, whether it's lens that collectively get together and want to short sell an asset or they want to sell a position. So we're looking at a number of opportunities like that.

格里芬，是麥可。我們不是機會主義者，無論是透過債務或直接資產購買，我們都對兩者持開放態度。直接購買資產顯然比償還債務更容易。但在某些情況下，機會是透過債務來實現的。我認為很多都是債務驅動的，無論是集體聚集在一起想要賣空資產還是想要出售部位。因此，我們正在尋找許多這樣的機會。

Look, I think that as we think about deploying capital, this is not a growth for growth's sake, right, where, as Steve said, we're trying to do things that are going to increase the value of the enterprise over time. And so our capital is precious and we want to deploy the capital in a very attractive way.

聽著，我認為，當我們考慮部署資本時，這不是為了成長而成長，對吧，正如史蒂夫所說，我們正在努力做一些能夠隨著時間的推移增加企業價值的事情。因此，我們的資本非常寶貴，我們希望以一種非常有吸引力的方式部署資本。

So I'm not going to give you a specific return target, but these are not core buys that we're trying to focus. We're trying to generate very attractive returns that can generate very attractive multiples over time. And so I would think that sort of value-added opportunistic so that dynamic is at play here. And that's probably as specific as I can get each deal has its own dynamics, but we're not looking to put out money to put out money. We want to make some serious profit if we deploy the capital.

所以我不會給你一個具體的回報目標，但這些不是我們想要專注的核心購買。我們正在努力產生非常有吸引力的回報，隨著時間的推移，可以產生非常有吸引力的倍數。所以我認為這種增值機會主義因此在這裡發揮了作用。這可能是我所能得到的最具體的訊息，每筆交易都有其自身的動態，但我們並不打算花錢來花錢。如果我們部署資本，我們希望獲得可觀的利潤。

Ronald Kamdem, Morgan Stanley.

羅納德‧卡姆德姆，摩根士丹利。

Hey. Just two quick ones. So just one on the I think you made some comments about occupancy dipping in 1Q '25, but potentially ending at sort of 93% at the end of next year, if I heard that correctly. Just curious what we should think about in terms of just the impact of same-store NOI. Any sort of comments on that would be helpful.

嘿。就兩個快的。所以，我認為您對 25 年第一季入住率下降發表了一些評論，但如果我沒聽錯的話，明年年底入住率可能會下降到 93%。只是好奇我們該如何思考同店 NOI 的影響。對此的任何評論都會有所幫助。

Ronald, good morning. I think difficult to give you that prediction right now. We're going through our budgets now. A lot of the stuff is timing driven. And I know that can give you sort of this quarter versus that quarter, that are, I think you know sort of the end goal based on we talked about in terms of the near term and just hard to give you that visibility today.

羅納德，早安。我認為現在很難給你這樣的預測。我們現在正在審查預算。很多事情都是時間驅動的。我知道這可以讓你了解本季與那個季度的情況，也就是說，我認為你知道基於我們在近期討論的最終目標，但今天很難給你這種可見性。

Okay. Great. I guess my second question, just going back to the cash flow statement, it looks like a good cash from operating quarter and so forth. Just how are you guys thinking about cash conversion as sort of the business recover? Is there any that we should be mindful of, whether it's CapEx spending or anything else like that as you're thinking about maximizing free cash flow as the business recovers. Thank you.

好的。偉大的。我想我的第二個問題，回到現金流量表，它看起來像是來自營業季度等的一筆不錯的現金。你們如何看待隨著業務復甦而進行現金轉換？當您考慮隨著業務復甦而最大化自由現金流時，我們是否應該注意什麼，無論是資本支出還是其他類似的事情。謝謝。

I mean, look, our objective, our general approach is to be fairly rigorous with how we invest our capital, right? And that includes on our existing asset base. So we are deploying the capital where we see an appropriate return if we don't see that opportunity. And I referenced that in my remarks, we don't see an opportunity on an asset that is -- has too much debt or until -- it is rework. I'm not going to do that.

我的意思是，看，我們的目標、我們的整體方法是相當嚴格地投資我們的資本，對吧？這包括我們現有的資產基礎。因此，如果我們看不到這樣的機會，我們就會將資本部署在我們能看到適當回報的地方。我在演講中提到，我們看不到債務太多或直到需要返工的資產上的機會。我不會那樣做。

And I think we've demonstrated that in the past. So we're going to continue to be rigorous, capital is precious, notwithstanding the strength of the balance sheet. And we hope that as we transition into the landlords market, we will start to see concessions trend down some. I don't think it's going to drop to where it was years ago because with inflation, the cost of build-out space is higher. But we do think in the best submarkets that there will be an opportunity to start tightening that a bit.

我認為我們過去已經證明了這一點。因此，我們將繼續保持嚴謹，無論資產負債表實力如何，資本都是寶貴的。我們希望，當我們過渡到房東市場時，我們將開始看到優惠趨勢下降。我認為它不會下降到幾年前的水平，因為隨著通貨膨脹，擴建空間的成本會更高。但我們確實認為，在最好的子市場中，將有機會開始稍微收緊這項政策。

Caitlin Burrows, Goldman Sachs.

凱特琳·布羅斯，高盛。

Hi. Good morning, everyone. Thanks for the comments earlier on the expected '24 dividend and the policy for '25. I guess I know the dividend is a Board decision, but could you give some maybe on what it would take to bring back the quarter dividends?

你好。大家早安。感謝您先前對 24 年預期股利和 25 年政策的評論。我想我知道股息是董事會的決定，但您能否提供一些有關如何恢復季度股息的資訊？

What we did was totally based upon conserving cash and protecting our balance sheet, that was the genesis of the dividend policy that we adopted. Lower dividend, curve the cash pay once at the end of the year. We canvas are a very significant work of our shareholders about that strategy. And universally, they endorsed it, protecting the balance sheet being the principal thing to do with it.

我們所做的完全是基於節省現金和保護我們的資產負債表，這就是我們採用的股利政策的起源。降低股息，在年底曲線一次現金支付。我們的畫布是我們的股東對該策略的非常重要的工作。他們普遍對此表示贊同，並認為保護資產負債表是首要任務。

The business cycle changes and the availability of capital, and we get by the more normal times, we will then likely convert to a normal dividend policy along what we had in the past. So this is not necessarily a permanent strategy. It's an interim strategy that protects the balance sheet, which was very well received by our constituents.

商業週期的變化和資本的可用性，以及我們度過了更正常的時期，然後我們可能會按照過去的方式轉變為正常的股利政策。所以這不一定是永久性的策略。這是一項保護資產負債表的臨時策略，受到我們選民的好評。

Got it. Okay. And then maybe just on PENN2, given the leasing you've already done and knowing it takes time for users to move in and contribute to rent and could you give any detail on your expectation for PENN2 build up in 2025, like maybe the path to recognizing that 9.5% yield?

知道了。好的。然後也許只是在 PENN2 上，考慮到您已經完成了租賃，並且知道用戶搬入並支付租金需要時間，您能否詳細說明您對 2025 年 PENN2 建設的期望，例如可能的路徑認識到9.5% 的收益率嗎？

I don't think you're going to see much in '25 just because the leases Glen is working on now, this really won't start by the time the build-out occurs, that income really wonder kicking in until '26. So I think you'll see a lot of activity over the course of the remainder of this year, next year. But I don't think it's actually hitting earnings. I think it's going to be really as we start getting into '26.

我認為你不會在 25 年看到太多，因為格倫現在正在處理租賃，這實際上不會在擴建發生時開始，收入真的要到 26 年才會開始。所以我認為在今年剩下的時間裡，明年你會看到很多活動。但我認為這實際上並沒有影響獲利。我認為當我們開始進入 26 年後，這將是真正的情況。

Nick Yulico, Scotiabank.

尼克尤利科，豐業銀行。

Thanks. Just wanted to go back to PENN1. And I guess two questions there is on the leasing that was done, the 70,000 square feet, which was at higher rent than prior leases. I think some of that was benefit from higher floor space, but can you just talk about like the rent there versus how we should think about additional rents still to come?

謝謝。只是想回到 PENN1。我猜想，關於 70,000 平方英尺的租賃有兩個問題，該租賃的租金比之前的租賃要高。我認為其中一些得益於較高的建築面積，但您能否談談那裡的租金以及我們應該如何考慮未來的額外租金？

Hi. It's Glen Weiss. Nick, how are you? So we continue to increase rents at PENN1. If you think about our started rents quarter-to-quarter since we unleashed on the redevelopment, they continue to rise in a pretty strong way. So yes, one of the deals we made this past quarter was in the upper stack of the building at a huge win. And that now will allow us to drag along the rest of the building where we've increased rents throughout.

你好。我是格倫·韋斯。尼克，你好嗎？因此我們繼續提高 PENN1 的租金。如果您考慮一下自我們啟動重建以來我們每個季度的起始租金，您會發現它們繼續以相當強勁的方式上漲。所以，是的，我們上個季度所做的其中一項交易是在大樓的上層，取得了巨大的勝利。現在這將使我們能夠繼續拖累大樓的其餘部分，我們已經提高了整棟大樓的租金。

Similarly PENN2, we've been very focused on our rental quotes increasing our quote there as well. So as we had predicted when we said fourth on this whole Penn District transformation a few years ago, we had said rents will rise as the district gets better, better and better as the new tenants move in, as the -- strengthens and it's exactly what's happening. So we expect that trend to continue as we go into '25, much of our activity we talked about in the pipeline, the PENN1 and PENN2 and other Penn District holdings additionally. So we think the best is yet to come and we're really excited about it.

與 PENN2 類似，我們一直非常關注我們的租賃報價，也增加了我們的報價。因此，正如我們幾年前在談到整個賓夕法尼亞區轉型時所預測的那樣，我們說過，隨著新租戶的搬入，該地區變得越來越好，租金將會上漲，隨著- 的加強，這正是發生了什麼事。因此，我們預計這種趨勢將在進入 25 年後繼續下去，我們在管道中討論了我們的大部分活動，PENN1 和 PENN2 以及其他賓夕法尼亞區的資產。所以我們認為最好的尚未到來，我們對此感到非常興奮。

Like we always said, we have leased 1 million feet post redevelopment. And therefore, we still have another 1.3 million, 1.4 million to go, right? So I think that gives you a sense of the magnitude of the opportunity. Now that's unlike PENN2, which is a lease-up -- execution, right? This is going to occur over the next several years, not all at once.

正如我們常說的，重建後我們已租用了 100 萬英尺。因此，我們還有另外 130 萬、140 萬，對嗎？所以我認為這讓你感受到機會的巨大。這與 PENN2 不同，PENN2 是租賃執行，對嗎？這將在未來幾年內發生，而不是一次性發生。

And so I think there's a continued meaningful mark-to-market opportunity there, and that's what that would continuing to rise, which if we start factoring in the rents that Glen just did on PENN1 this past quarter, that's even more sniff. So this is that we think is going to continue to deliver for us over time, given we've done in the district.

因此，我認為那裡存在持續有意義的按市值計價的機會，這就是將繼續上漲的機會，如果我們開始考慮格倫上個季度在 PENN1 上所做的租金，那就更令人嗤之以鼻了。因此，鑑於我們在該地區所做的工作，我們認為隨著時間的推移，這將繼續為我們提供服務。

Okay. Thanks, Michael. Second question is just in terms of -- I know there's been a lot of talk on the call about occupancy improving. And then, Michael, you're also talking about some of the impact for the PENN2 leasing is more of 2026 impact. But as we're thinking about '25. I know you've said in the past to capitalize interest burn-off issue you have to deal with.

好的。謝謝，麥可。第二個問題是──我知道電話會議中有很多關於改善入住率的討論。然後，Michael，您還談到 PENN2 租賃的一些影響更多的是 2026 年的影響。但當我們考慮'25'時。我知道您過去曾說過要資本化您必須處理的利息消耗問題。

How should we think about earnings growth next year? And at some point, if there's a feel for when you're getting to sort of the bottom in terms of FFO and you'd start to see some FFO growth based on the occupancy growth? Thanks.

我們該如何看待明年的獲利成長？在某些時候，是否有一種感覺，當您的 FFO 觸底時，您會開始看到基於入住率增長的一些 FFO 增長？謝謝。

Yeah. Look, I think we said in the last quarter or so that a lot of the activity that we're executing on now, we're really going to get the benefit of starting in '26. I think that continues to be the case, right? So this pipeline that we're working on, there are some things that will hit, a little bit more immediately, and we're sort of running that through the system right now to see the impact. But a lot of this activity will really kick in '26 and you'll start seeing material growth in that year and thereafter.

是的。聽著，我想我們在上個季度左右說過，我們現在正在執行的許多活動，我們確實將從 26 年開始受益。我認為情況仍然如此，對嗎？因此，我們正在研究的這條管道，有些事情會立即產生影響，我們現在正在透過系統運行它以查看影響。但許多此類活動將在 26 年真正啟動，您將在那一年及之後開始看到實質成長。

So '25, well try to give you a little bit more color as we get closer to next year as we refine the budget to what we're doing. But I think we've sort of said next year was going to continue to be somewhat flat to this year. The move-outs and the backfilling, the timing doesn't sync up in terms of when that comes online. So there's things that are moving around. On the positive side, like we're effectively hedged, rates are starting to come down certainly in the short term.

因此，25 年，隨著我們根據我們正在做的事情完善預算，隨著明年的臨近，我們會盡力為您提供更多的資訊。但我認為我們已經說過明年的情況將繼續與今年持平。搬出和回填的時間與上線時間並不同步。所以有些東西在移動。從積極的一面來看，就像我們得到了有效的對沖一樣，利率在短期內肯定會開始下降。

But I don't think we'll start to see material impact on that as well until '26 because you are fairly hedged, though. So I can't give you a precision because we're still working through it. And as you know, we don't give guidance. But I think this is a general matter. I think the comments we've said in the last three, four months about being not too dissimilar from this year, I think still holds with respect to '25.

但我認為直到 26 年我們才會開始看到對此的實質影響，因為你已經相當對沖了。所以我無法給你一個精確的數字，因為我們仍在努力解決這個問題。如您所知，我們不提供指導。但我認為這是一個普遍問題。我認為我們在過去三、四個月所說的關於與今年並沒有太大不同的評論，我認為對於 25 年來仍然適用。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Steven Roth 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文·羅斯先生做閉幕致詞。

Thanks, everybody. It's Election Day. And so tonight, it's going to be very exciting, I think. Those of you who have not seen the PENN District recently and I mean very recently please call, we're very proud of what we've accomplished there and we're dying to take you through and expose to these assets, which we think going -- are performing very well and will perform better. So if you want to or give us a call, and we'll see you in the next quarter. Thanks very much.

謝謝大家。今天是選舉日。所以今晚，我想這將會非常令人興奮。那些最近沒有見過 PENN 區的人，我的意思是最近，請致電，我們對我們在那裡所取得的成就感到非常自豪，我們渴望帶您參觀並接觸這些資產，我們認為這些資產將繼續下去— —目前表現非常好，並且將會表現得更好。因此，如果您願意或給我們打電話，我們將在下個季度見到您。非常感謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。