Clipper Realty Inc (CLPR) 2023 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Clipper Realty First Quarter 2023 Earnings Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Larry Kreider. The floor is yours.

女士們、先生們，美好的一天，歡迎參加 Clipper Realty 2023 年第一季度財報電話會議。此時，所有參與者都已進入僅聽模式，演示結束後將開放供提問和評論。現在我很高興將發言權交給主持人拉里·克雷德 (Larry Kreider)。地板是你的。

Thank you, and good afternoon. Thank you for joining us for the First Quarter of 2023 Clipper Realty Inc. Earnings Conference Call. Participating with me on today's call are David Bistricer, Co-Chairman of the Board and Chief Executive Officer; and J.J. Bistricer, Chief Operating Officer.

謝謝你，下午好。感謝您參加我們的 Clipper Realty Inc. 2023 年第一季度收益電話會議。與我一起參加今天電話會議的是董事會聯合主席兼首席執行官 David Bistricer；和 J.J.比斯特里瑟，首席運營官。

Please be aware that statements made during the call that are not historical may be deemed forward-looking statements, and actual results may differ materially from those indicated by such forward-looking statements. These statements are subject to numerous risks and uncertainties, including those disclosed in the company's 2022 annual report on Form 10-K and updated in the 2023 first quarter report on Form 10-Q, which are accessible at www.sec.gov and our website.

請注意，電話會議期間做出的非歷史陳述可能被視為前瞻性陳述，實際結果可能與此類前瞻性陳述所表明的結果存在重大差異。這些聲明受到許多風險和不確定性的影響，包括公司 2022 年年度報告 10-K 表格中披露的風險和不確定性以及 2023 年第一季度報告 10-Q 表格中更新的風險和不確定性，這些風險和不確定性可通過 www.sec.gov 和我們的網站訪問。

As a reminder, the forward-looking statements speak only as of the date of this call, May 4, 2023, and the company undertakes no duty to update them. During this call, management may refer to certain non-GAAP financial measures, including adjusted funds from operations or AFFO; adjusted earnings before interest, taxes, depreciation and amortization or adjusted EBITDA; and net operating income or NOI. Please see our press release, supplemental financial information and Form 10-Q posted today for a reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures. With that, I will now turn the call over to our Co-Chairman and CEO, David Bistricer.

謹此提醒，前瞻性陳述僅代表截至本次電話會議之日（2023 年 5 月 4 日）的情況，公司不承擔更新這些陳述的義務。在本次電話會議中，管理層可能會參考某些非 GAAP 財務指標，包括來自運營或 AFFO 的調整後資金；調整後的息稅折舊攤銷前利潤或調整後的 EBITDA；以及淨營業收入或 NOI。請參閱我們今天發布的新聞稿、補充財務信息和 10-Q 表，了解這些非 GAAP 財務指標與最直接可比的 GAAP 財務指標的對賬情況。現在，我將把電話轉給我們的聯合董事長兼首席執行官 David Bistricer。

Thank you, Larry. Good afternoon, and welcome to the First Quarter 2023 Earnings Call for Corporate Realty. I will provide an update to our business performance, including recent highlights and milestones as well as our company's progress. I will then turn the call over to J.J., who will discuss property level activity, including recent performance. Finally, Larry will speak about our quarterly financial performance. We will then take your questions.

謝謝你，拉里。下午好，歡迎參加企業房地產 2023 年第一季度收益電話會議。我將提供我們業務業績的最新信息，包括最近的亮點和里程碑以及我們公司的進展。然後我會將電話轉給 J.J.，他將討論房地產層面的活動，包括最近的表現。最後，拉里將談論我們的季度財務業績。然後我們將回答您的問題。

Our operating results continued their positive trends. Residential leasing activity continues to improve based on strong rental demand at our properties as New York city is fully reopened, people seek to relocate back to the city and employees increasingly return to their offices.

我們的經營業績延續了積極的趨勢。隨著紐約市全面重新開放，人們尋求搬回城市，員工越來越多地返回辦公室，住宅租賃活動因我們物業的強勁租賃需求而持續改善。

At the end of the first quarter, our properties were 99% leased. And new leases at all our properties continue to exceed pre-pandemic levels. At the Tribeca House, for example, new leases in the first quarter exceeded $77 per foot, 17% better than in the previous rents. And overall rent levels were a record $75 per foot, 19% better than the $63 at the end of December 2022. And at the Flatbush Gardens complex, new leases averaged $36 this quarter and overall rent levels rose to $26.17 per foot.

截至一季度末，我們的物業已出租99%。我們所有物業的新租約繼續超過大流行前的水平。例如，Tribeca House 第一季度的新租約超過每英尺 77 美元，比之前的租金上漲了 17%。總體租金水平達到創紀錄的每英尺 75 美元，比 2022 年 12 月底的 63 美元上漲 19%。在 Flatbush Gardens 綜合體，本季度新租約平均為 36 美元，總體租金水平升至每英尺 26.17 美元。

With respect to interest rate increases, we believe we are buttressed by a relatively long duration of our debt on our operating properties, of which 94% is fixed at an average of 3.72% interest, with an average duration of 6.47 years is and is nonrecourse subject to limited standard carve-outs and is not cross-collateralized.

關於加息，我們認為我們經營性物業的債務期限相對較長，其中 94% 固定為平均 3.72% 的利息，平均期限為 6.47 年，並且是無追索權的受有限標準的限制，並且不交叉抵押。

With respect to inflation, we look at the short duration and high demand for our residential leases to allow us to cover increased in expenses on our operating properties and higher construction cost on our development properties.

就通貨膨脹而言，我們著眼於住宅租賃的短期和高需求，以便我們能夠彌補運營物業費用的增加和開發物業較高的建​​築成本。

Our balance sheet continues to be well positioned from a liquidity perspective. We have a total of $38 million in cash consisting of $19 million of unrestricted cash and $19 million of restricted cash. We finance our portfolio on an asset-by-asset basis.

從流動性角度來看，我們的資產負債表仍然處於有利位置。我們總共擁有 3800 萬美元現金，其中 1900 萬美元非限制性現金和 1900 萬美元限制性現金。我們以資產為基礎為我們的投資組合提供融資。

We are pleased to announce that as of today, we have completed or on schedule our 1010 Pacific Street ground-up development, now branded Pacific House, refinanced with permanent debt and begun leasing in anticipation of full operation in the second quarter. The property is located in Prospect Heights Brooklyn, about 1 mile from the Atlantic Terminal/Barclays Center Hub and comprises 175 units.

我們很高興地宣布，截至今天，我們已經完成或按計劃完成了太平洋街 1010 號的地面開發項目，現已命名為 Pacific House，並通過永久債務進行再融資並開始租賃，預計將在第二季度全面運營。該物業位於布魯克林 Prospect Heights，距離大西洋碼頭/巴克萊中心樞紐約 1 英里，擁有 175 個單元。

It came on in a budget of about $85 million total cost and is leasing to a cap rate above 7%. Due to the excellent progress of construction and leasing in February, we replaced the construction loan ahead of schedule with a 5-year $80 million loan, $60 million is already drawn at closing, $20 million available upon achievement of certain financial targets. It has an initial interest rate of 5.7%, reduced by another 25 basis points upon full lease-up.

它的總成本預算約為 8500 萬美元，租賃上限高於 7%。由於2月份建設和租賃進展良好，我們提前用5年期8000萬美元的貸款取代了建設貸款，截止時已提取6000萬美元，完成某些財務目標後可使用2000萬美元。其初始利率為 5.7%，全額租賃後又降低 25 個基點。

Also, we have begun to develop the land parcels we bought in 2021 through 2022 at Dean Street. We also intend to develop from the ground up a 9 story fully amenitized residential building with 166 (sic) [160,000] residential rentable square feet, 240 total units, 70% of which are free market and the balance is affordable, along with the 8,500 commercial rental square feet. We paid $56.5 million for the parcels, partially funded from acquisition financing of $36 million now, and we intend to fund the development with construction [financing].

此外，我們還開始開發 2021 年至 2022 年在 Dean Street 購買的地塊。我們還打算從頭開始開發一棟 9 層設施齊全的住宅樓，面積為 166（原文如此）[160,000] 住宅可出租平方英尺，總共 240 個單位，其中 70% 是自由市場，其餘的是可負擔的，以及 8,500商業出租平方英尺。我們為這些地塊支付了 5650 萬美元，部分資金來自目前 3600 萬美元的收購融資，我們打算通過建設[融資]為開發提供資金。

With regard to our first quarter results, we are reporting record quarterly revenue of $33.7 million; NOI of $17.1 million, both exceeding pre-pandemic levels; and AFFO of $4.5 million as a result of improved leasing I mentioned above. These results represent significant improvements over the first quarter of last year and a testament to the progress of the management executive team, and J.J. and I will further detail. I will now turn the call over to J.J., who will provide an update on operations.

關於我們第一季度的業績，我們報告了創紀錄的季度收入 3370 萬美元； NOI 為 1710 萬美元，均超過大流行前的水平；由於我上面提到的改進租賃，AFFO 增加了 450 萬美元。這些結果比去年第一季度取得了顯著進步，證明了管理執行團隊和 J.J.我將進一步詳細說明。我現在將把電話轉給 J.J.，他將提供最新的運營情況。

Thank you. I'm pleased to report that our residential leasing performance at all our properties continues to improve. At the end of the first quarter, all our residential properties occupancy and rent levels are exceeding pre-pandemic levels. Overall, new lease rental rates in the first quarter exceeded previous rents by over 14% and renewal rate by over 8%.

謝謝。我很高興地報告，我們所有物業的住宅租賃業績持續改善。截至第一季度末，我們所有住宅物業的入住率和租金水平均超過了疫情前的水平。總體而言，第一季度新租租金率比之前租金高出14%以上，續租率高出8%以上。

We are experiencing particularly strong rental demand at our Tribeca House property. Our leased occupancy has averaged 98% over the last 12 months. We have steadily increased average rent per square foot to $75 from $63 over that same period.

我們的 Tribeca House 物業的租賃需求特別強勁。過去 12 個月，我們的租賃入住率平均為 98%。同期，我們將每平方英尺的平均租金從 63 美元穩步提高到 75 美元。

In the first quarter, rents on new leases were $77 per square foot, a 17% increase over previous rents. And rents on renewals were $74 per square foot, a 14% increase over previous rents. We expect rent per square foot to continue to grow for at least another quarter as a result of turnover of our 1- and 2-year leases entered into last year in response to pandemic conditions and as a result of continued strong overall leasing conditions.

第一季度，新租約的租金為每平方英尺 77 美元，比之前的租金上漲了 17%。續租租金為每平方英尺 74 美元，比之前的租金上漲了 14%。我們預計，由於去年為應對疫情而簽訂的一年期和兩年期租賃的周轉率以及整體租賃條件持續強勁，每平方英尺租金將至少在另一個季度繼續增長。

We also continue to benefit from the new leases on retail properties at the Tribeca House property. The 4 new leases we entered into last year have substantially higher rates or cash flowing, and we are actively seeking to lease the last remaining retail space vacated during the pandemic.

我們還繼續受益於 Tribeca House 零售物業的新租約。我們去年簽訂的 4 個新租約的利率或現金流量顯著提高，我們正在積極尋求租賃大流行期間空出的最後剩餘零售空間。

At the Flatbush Gardens complex in Brooklyn, we are focused on maintaining high occupancy at the 99% level and keeping up with maintenance activities. New leases in the first quarter have averaged nearly $36 per foot, approximately 40% higher than the units previously rented. As a result, overall average rent for the property have begun to increase, again, rising to $26.17 per square foot at the end of the quarter versus $25.12 at the end of last year. We are now benefiting from the guidelines put forth by the rent stabilization board in October 2023 (sic) [2022], which allows increases on rent stabilized units of 3.25% for 1 year leases and 5% for 2 year leases. Such increases have been limited to 0% and 2% for the last couple of years. These increases will help offset our continued capital investment in the property, which has amounted to $900,000 so far this year and our continued aggressive spending on maintenance and supplies.

在布魯克林的 Flatbush 花園綜合體，我們致力於將入住率維持在 99% 的水平，並跟上維護活動。第一季度的新租約平均每英尺近 36 美元，比之前租用的單位高出約 40%。因此，該物業的整體平均租金再次開始上漲，季度末升至每平方英尺 26.17 美元，而去年年底為每平方英尺 25.12 美元。我們現在受益於租金穩定委員會於 2023 年 10 月提出的指導方針（原文如此）[2022]，該指導方針允許租金穩定單位的 1 年期租賃增加 3.25%，2 年期租賃增加 5%。過去幾年，這種增幅被限制在 0% 和 2%。這些增長將有助於抵消我們對該房產的持續資本投資（今年迄今為止已達 90 萬美元）以及我們在維護和供應方面持續大舉的支出。

Our other residential properties, Clover House, 10 West 65th Street, Aspen and 250 Livingston Street continued to perform well, while average leased occupancy for these properties has maintained at 99%, average rental rates have increased 11% from a year ago. Rent collection across our portfolio remains strong despite the individual challenges of the pandemic. The overall collection rate in the first quarter was over 98%. Surprisingly, we have continued to benefit but at a lower rate from remittances under the New York Emergency Rental Assistance Program, or ERAP, and the Landlord Rental Assistance Program, or LRAP. We received remittances this quarter of $500,000 versus average 2022 quarterly amount of $776,000 and a fourth quarter 2021 amount of $2.5 million.

我們的其他住宅物業，Clover House、10 West 65th Street, Aspen 和 250 Livingston Street 繼續表現良好，而這些物業的平均出租率維持在 99%，平均租金較去年同期上升 11%。儘管疫情帶來了個別挑戰，但我們整個投資組合的租金收取仍然強勁。一季度總體收款率超過98%。令人驚訝的是，我們繼續從紐約緊急租金援助計劃（ERAP）和房東租金援助計劃（LRAP）的匯款中受益，但利率較低。本季度我們收到的匯款為 500,000 美元，而 2022 年季度平均金額為 776,000 美元，2021 年第四季度為 250 萬美元。

On the development side, the construction of Pacific House in the Prospect Heights area of Brookline is completed, with a certificate of occupancy issued by the New York City building department. We began leasing in the first quarter and have already leased 60% of the 122 fee market leases as of today. We expect to be substantially leased in the third quarter. The development is a 9-story 119,000 rentable square foot fully amenitized multifamily rental building with underground indoor parking. The property has 175 total units, 70% free market and 30% affordable and has a 35-year 421(a) tax abatement.

開發方面，位於布魯克萊恩Prospect Heights地區的Pacific House已竣工，並獲得紐約市建築部門頒發的入住證書。我們從第一季度開始租賃，截至目前已經租出了 122 個收費市場租賃中的 60%。我們預計第三季度將大量出租。該開發項目是一棟 9 層、面積 119,000 平方英尺、設施齊全、設施齊全的多戶出租建築，設有地下室內停車場。該房產共有 175 個單位，70% 為自由市場，30% 為經濟適用房，並享有 35 年 421(a) 減稅優惠。

Looking ahead, we remain focused on optimizing occupancy, pricing and expenses across the business to best position ourselves for growth. I will now turn the call over to Larry, who will discuss our financial results.

展望未來，我們仍然專注於優化整個業務的入住率、定價和費用，以便為增長做好最佳準備。我現在將把電話轉給拉里，他將討論我們的財務業績。

Thank you, J.J. For the first quarter, our reported revenues increased by $1.6 million to a record $33.7 million from $32.1 million last year first quarter. On a more comparable basis, after eliminating a onetime recovery of previously written-off receivables of $1.1 million under the new accounting standard implemented last year, revenue last year was $31 million, representing an increase of $2.7 million or 9%.

謝謝你，J.J.第一季度，我們報告的收入從去年第一季度的 3210 萬美元增加了 160 萬美元，達到創紀錄的 3370 萬美元。在更具可比性的基礎上，扣除去年實施的新會計準則下一次性收回的110萬美元之前核銷的應收賬款後，去年的收入為3100萬美元，增加了270萬美元，增幅為9%。

NOI this quarter was $17.1 million or $0.6 million better than last year as reported and $1.7 million better after adjusting for the onetime revenue recovery. Similarly, AFFO this year was $4.7 million, an increase of $0.2 million from the $4.5 million reported last year or $1.3 million better after adjusting for the onetime recovery items.

據報導，本季度的 NOI 為 1710 萬美元，比去年增加了 60 萬美元，在對一次性收入復甦進行調整後，增加了 170 萬美元。同樣，今年的 AFFO 為 470 萬美元，比去年報告的 450 萬美元增加了 20 萬美元，在調整一次性回收項目後增加了 130 萬美元。

The revenue increase was due to the higher residential revenue rates from continued strong leasing, as mentioned by J.J., and higher occupancy at the Flatbush Gardens property.

正如 J.J. 所提到的，收入增長是由於持續強勁的租賃導致住宅收入率上升，以及 Flatbush Gardens 房產的入住率提高。

Bad debt expense was substantially level with last year, reflecting the high and stabilized collections, as J.J. also discussed.

正如 J.J. 所言，壞賬支出與去年基本持平，反映出收款額較高且穩定。也討論了。

On the expense side, key year-over-year changes were as follows. Property operating expenses were $600,000 higher than last year due primarily to increased utility gas heating prices compared to last year and higher repair costs at Flatbush Gardens from our increased focus on maintenance. The real estate taxes and insurance increased by approximately $600,000 in the first quarter year-on-year, $500,000 due to the regular increase in real estate taxes midyear last year and $100,000 due to insurance cost increases. General and administrative costs increased by $350,000 in the first quarter year-on-year, primarily due to extra auditor transition costs and higher amortization cost of LTIP issued after the first quarter last year. Interest expense increased by $200,000 in the first quarter year-on-year due to conversion of the debt at the 10 West Street property to variable rate according to its terms, partially offset by additional capitalization of interest associated with the Pacific House and 953 Dean Street development projects.

在費用方面，主要同比變化如下。物業運營費用比去年增加了 600,000 美元，主要是由於公用燃氣供暖價格與去年相比上漲，以及由於我們更加註重維護而導致弗拉特布什花園的維修成本增加。第一季度房地產稅和保險同比增加約60萬美元，其中50萬美元是由於去年年中房地產稅定期增加，10萬美元是由於保險費用增加。第一季度的一般和行政成本同比增加了 35 萬美元，主要是由於額外的審計師過渡成本以及去年第一季度後發行的 LTIP 攤銷成本較高。由於西街 10 號房產的債務根據其條款轉換為浮動利率，第一季度利息支出同比增加了 20 萬美元，部分被太平洋大廈和迪恩街 953 號相關利息的額外資本化所抵消開發項目。

With regard to our balance sheet, as David mentioned earlier, we have $18.8 million of unrestricted cash and $19 million of restricted cash. We initially funded development of our Pacific House and Dean Street acquisitions substantially with construction financing. In February, we refinanced the Pacific House construction loan with an $80 million mortgage and provided an initial funding of $60 million and a further $20 million subject to achievement of certain financial targets. The loan has a 5-year term and an initial interest rate of 5.7%, subject to a reduction by up to 25 basis points upon achievement of certain financial objectives. The loan is interest only for the first 2 years and principal and interest thereafter based on a 30-year amortization schedule.

關於我們的資產負債表，正如 David 之前提到的，我們有 1880 萬美元的非限制性現金和 1900 萬美元的限制性現金。我們最初主要通過建築融資為收購的 Pacific House 和 Dean Street 的開發提供資金。 2 月份，我們為 Pacific House 建設貸款提供了 8000 萬美元的抵押貸款再融資，並提供了 6000 萬美元的初始資金，並在實現某些財務目標的情況下進一步提供了 2000 萬美元。該貸款期限為 5 年，初始利率為 5.7%，在實現某些財務目標後最多可降低 25 個基點。貸款僅前兩年支付利息，此後根據 30 年攤銷時間表支付本金和利息。

We finance our portfolio on an asset-by-asset basis. And our debt is nonrecourse, subject to limited standard carve-outs and is not cross-collateralized. We have no debt maturities on any operating properties until 2027 with average overall duration of 6.47 years. At the end of 2023, currently 9.4% of debt at our operating properties is fixed at an average rate of 3.72%. Today, we are announcing a dividend of $0.095 per share for the first quarter, the same amount as last quarter. The dividend will be paid on May 24 to shareholders of record on May 15. Let me now turn the call back over to David for concluding remarks.

我們以資產為基礎為我們的投資組合提供融資。我們的債務是無追索權的，受到有限的標準豁免限制，並且沒有交叉抵押。到 2027 年，我們的任何運營物業都沒有債務到期日，平均總期限為 6.47 年。截至 2023 年底，目前我們經營性物業的 9.4% 債務固定為平均 3.72%。今天，我們宣布第一季度股息為每股 0.095 美元，與上季度相同。股息將於 5 月 24 日支付給 5 月 15 日登記在冊的股東。現在讓我將電話轉回給 David 進行總結髮言。

Thank you, Larry. We remain focused on efficiently operating our portfolio. We look forward to our current operating improvements to continue to accelerate to the next quarter and into 2023. We look forward to capitalizing on a myriad of growth opportunities, including Pacific House and Dean Street developments and other possibilities that may present themselves. I will now open the line for your questions.

謝謝你，拉里。我們仍然專注於有效運營我們的投資組合。我們期待當前的運營改善能夠在下個季度和 2023 年繼續加速。我們期待利用無數的增長機會，包括 Pacific House 和 Dean Street 的開發以及其他可能出現的可能性。我現在將開通您的提問熱線。

(Operator Instructions) The first question comes from Buck Horne with Raymond James.

（操作員說明）第一個問題來自巴克·霍恩和雷蒙德·詹姆斯。

Congrats on the progress. Wondering if we could just revisit Flatbush. And going back to late last year, it sounded like you guys were marketing the property or at least taking some indications of interest in the market to see if there was a potential buyer or a transaction that might be possible for Flatbush? I'm just wondering if you can give a progress update? Or is Flatbush still potentially on the market?

祝賀取得的進展。想知道我們是否可以重遊弗拉特布什。回到去年年底，聽起來你們正在營銷該房產，或者至少採取一些對市場感興趣的跡象，看看是否有潛在買家或可能對弗拉特布什進行交易？我只是想知道你是否可以提供最新進展？或者，Flatbush 是否仍有潛力在市場上銷售？

Flatbush is no longer in the market. We took it off the market, and we have some other plans for the property, which we cannot talk about at the moment. But hopefully, next quarter, we should be in a better position to discuss what direction we're going. But at the moment, we're not considering a sale of the property.

Flatbush 不再出現在市場上。我們將其從市場上撤下，並且我們對該房產還有一些其他計劃，但目前我們無法談論。但希望下個季度我們能夠更好地討論我們的發展方向。但目前，我們不考慮出售該房產。

Okay. All right. I appreciate the update. And for this year, it sounds like there's new -- I guess, new discussions and proposals from the rent guidelines board about potential increases for rent-stabilized units. Just read articles talking about the up to 2% to 5% increases on the 1-year leases and higher than that on 2-year leases. So it sounds like there may be some additional progress of rent increases coming in. I'm just wondering if -- I guess the question would be related to Flatbush and those properties, do you think -- I don't know what you're going to opine on in terms of what do you think the likelihood of those types of increases being pushed through would be?

好的。好的。我很欣賞這個更新。今年，我想，租金指導委員會似乎對租金穩定單元的潛在增長進行了新的討論和建議。只需閱讀有關 1 年期租約增幅高達 2% 至 5% 且高於 2 年期租約的文章。所以聽起來租金上漲可能會取得一些額外的進展。我只是想知道是否——我猜這個問題與弗拉特布什和那些房產有關，你認為——我不知道你是什麼？我們將就您認為推動此類增長的可能性有多大發表意見？

If history is the guide which usually is, there will be some increase. If you read the news reports about how they conducted the meeting, it's more of a circus than anything else. But there will be, I think, a good possibility that there will be an increase. It's too early to tell until we know the results in a couple of, what is it, a week or so. And stay tuned. There will be something coming, I think. That seems to be an indication.

如果歷史是通常的指導，那麼將會有一些增長。如果你讀過有關他們如何召開會議的新聞報導，你會發現這更像是一場馬戲表演。但我認為，增加的可能性很大。現在說還為時過早，直到我們在幾週左右知道結果之前，它是什麼，一周左右的時間。請繼續關注。我想，將會有一些事情發生。這似乎是一個暗示。

And Buck, as I also noted, we've already started to benefit from the increases that were permitted effective October of last year. And it's coming gradually. It's a large property, turnover is reasonably slow.

巴克，正如我還指出的，我們已經開始從去年 10 月生效的漲價中受益。而且它正在逐漸到來。這是一個很大的房產，周轉速度相當慢。

Okay. Appreciate that. And just last one for me. Just kind of thinking higher level in terms of where the stock price is at relative to, obviously, with you guys until you guys consider the NAV of the company materially higher than these levels. Do you guys -- do you have any thoughts to other strategic transactions or potentially one of the smaller properties potentially monetizing a property to fund either debt repayment or stock repurchases at these levels?

好的。感謝。對我來說只是最後一件。顯然，只是在更高的水平上考慮股價相對於你們的水平，直到你們認為公司的資產淨值大大高於這些水平。你們對其他戰略交易或可能將一處房產貨幣化以資助這些水平的債務償還或股票回購的潛在較小房產之一有什麼想法嗎？

It's something which we have not considered at the present time. The climate is not right. I think with that at this particular moment where interest rates are, with the pause in interest rate, seemingly there's a pause in interest rate, I think after that, comes sort of interest to come back the other way around, and that's probably be a better time to explore what you're suggesting.

這是我們目前還沒有考慮的事情。氣候不對。我認為在這個特定的時刻，隨著利率的暫停，利率似乎出現了暫停，我認為在那之後，利息會以相反的方式回來，這可能是一個是時候探索您的建議了。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) There are no further questions in queue. Do you have any closing comments you'd like to finish with?

（操作員說明）隊列中沒有其他問題。最後您還有什麼想說的嗎？

Thank you for joining us today. We look forward to speaking with you again soon, and please stay healthy. Have a good day.

感謝您今天加入我們。我們期待很快再次與您交談，請保持健康。祝你有美好的一天。

Ladies and gentlemen, this does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

女士們先生們，今天的電話會議到此結束。此時您可以斷開電話線，度過美好的一天。感謝您的參與。