CTO Realty Growth Inc (CTO) 2023 Q3 法說會逐字稿

Good day, and welcome to the CTO Realty Growth Third Quarter 2023 Operating Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Chief Financial Officer, Matt Partridge. Please go ahead.

美好的一天，歡迎參加 CTO Realty Growth 2023 年第三季營運業績電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在，我想將會議交給今天的發言人、財務長 Matt Partridge。請繼續。

Good morning, everyone. Thank you for joining us today for CTO Realty Growth's Third Quarter 2023 Operating Results Conference Call. With me today is our CEO and President, John Albright.

大家，早安。感謝您今天參加我們的 CTO Realty Growth 2023 年第三季營運業績電話會議。今天與我在一起的是我們的執行長兼總裁約翰·奧爾布賴特 (John Albright)。

Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements. And we undertake no duty to update these statements.

在開始之前，我想提醒大家，根據聯邦證券法，我們今天的許多評論都被視為前瞻性陳述。公司未來的實際業績可能與這些前瞻性陳述中討論的事項有顯著差異。我們不承擔更新這些聲明的責任。

Factors and risks that could cause actual results to differ materially from expectations are disclosed from time-to-time in greater detail in the company's Form 10-K, Form 10-Q and other SEC filings. You can find our SEC reports, earnings release, quarterly supplemental and most recent investor presentation on our website at ctoreit.com.

公司的 10-K 表格、10-Q 表格和其他 SEC 文件中不時更詳細地揭露可能導致實際結果與預期有重大差異的因素和風險。您可以在我們的網站 ctoreit.com 上找到我們的 SEC 報告、收益發布、季度補充報告和最新投資者簡報。

With that, I'll now hand the call over to John.

現在，我將把電話轉給約翰。

Thanks, Matt, and good morning, everyone. I'm pleased to announce we had a strong quarter of operational execution that led us to meaningfully increase our full year FFO and AFFO guidance.

謝謝馬特，大家早安。我很高興地宣布，我們季度的營運執行力強勁，這使我們有意義地提高了全年 FFO 和 AFFO 指導。

The strength in our numbers were driven by better-than-forecasted tenant retention for lease renewals, accelerated new tenant rent commencements, outsized percentage rent from food and beverage and theater operators and improved expense controls, where we have direct cost exposure. All of this strength was partially offset by a credit loss associated with our WeWork location, where they have stopped making payments as of September. And those payments were set to expire in April of 2024.

我們的數位強勁是由於續租的租戶保留率優於預期、新租戶租金開始加速、餐飲和劇院營運商的租金比例過高以及費用控制的改善（我們在這些方面有直接成本風險）。所有這些優勢都被我們 WeWork 辦公地點相關的信用損失部分抵消了，自 9 月起，他們已停止付款。這些付款將於 2024 年 4 月到期。

Leasing activity during the quarter was strong. The team signed 21 leases totaling more than 132,000 square feet, including approximately 26,000 square feet of previously acquired vacancy. This is the second-highest volume of square feet leased in 1 quarter in our company's history.

本季的租賃活動強勁。該團隊簽署了 21 份租約，總面積超過 132,000 平方英尺，其中包括先前獲得的約 26,000 平方英尺的空置空間。這是我們公司史上第一季租賃面積第二高的數據。

The activity was relatively widespread and included the signing of a replacement lease for the food hall space at Ashford Lane in Atlanta. The new lease is with Politon Row, a well-known successful operator of food halls, who has a multiple location presence in Atlanta. While the rent is lower than the previous food hall lease, we are getting a more established operator with a better credit profile. And we did not have to make any additional capital investments. They are scheduled to open before the end of the year.

該活動相對廣泛，包括簽署亞特蘭大阿什福德巷食品大廳空間的替換租約。新的租約是與 Politon Row 簽訂的，Politon Row 是一家著名的成功美食廣場營運商，在亞特蘭大擁有多家分店。雖然租金比以前的食堂租賃要低，但我們正在尋找一家信用狀況更好的更成熟的營運商。我們不需要進行任何額外的資本投資。他們計劃在今年年底前開業。

For the quarter, our comparable rent spreads were essentially flat, down 0.4%, largely due to the lower rent from the food hall space. When removing the impact of this specific lease, we grew comparable rents 11.4%, most notably benefiting from the solid growth in rents at Beaver Creek Crossings outside of Raleigh and The Collection at Forsyth near Atlanta. Year-to-date, we've signed approximately 400,000 square feet of leases at an average rent of $24.57 per square foot.

本季度，我們的可比租金利差基本持平，下降了 0.4%，這主要是由於食品大廳空間的租金較低。在消除這項特定租賃的影響後，我們的可比租金增長了 11.4%，最顯著的是受益於羅利以外的 Beaver Creek Crossings 和亞特蘭大附近的 Forsyth 的 The Collection 的租金的穩健增長。今年迄今為止，我們已簽署了約 40 萬平方英尺的租約，平均租金為每平方英尺 24.57 美元。

Comparable rent spreads for leases signed this year increased 4.6% with many of our larger properties experiencing the highest growth rates: Crossroads Towne Center near Phoenix; Legacy North, located just outside Dallas; Beaver Creek Crossings; The Collection at Forsyth; and our newest investment, Plaza at Rockwall, which is also in the Dallas MSA, all had year-to-date comparable rent spreads above 7%. With all this leasing activity, our signed but not open pipeline now represents 3.2% of prospective occupancy pickup and 5% of existing quarter-end portfolio cash-based rents.

今年簽訂的租賃合約的可比租金利差增長了 4.6%，其中許多較大型物業的增長率最高：鳳凰城附近的 Crossroads Towne Center； Legacy North，位於達拉斯郊外；海狸溪渡輪；福賽斯收藏館；我們最新投資的羅克沃爾廣場 (Plaza at Rockwall) 也位於達拉斯 MSA，年初至今的可比租金利差均超過 7%。透過所有這些租賃活動，我們已簽約但尚未開放的管道現在佔預期入住率上升的 3.2% 和現有季度末投資組合現金租金的 5%。

Subsequent to the quarter, I'm happy to announce we've signed a lease with a financial institution to lease our vacant 7,800-square foot outparcel at Ashford Lane. This outparcel was vacant at the time of acquisition and was one of our key remaining vacancies at this property. With this lead signing, Ashford Lane is now on a path to be more than 90% leased by year-end.

本季結束後，我很高興地宣布，我們已與一家金融機構簽署了一份租約，租賃我們位於阿什福德巷 (Ashford Lane) 的 7,800 平方英尺空置地塊。該地塊在收購時處於空置狀態，是我們在該房產中剩餘的主要空缺之一。憑藉這一主要簽約，Ashford Lane 預計在年底前實現 90% 以上的出租率。

As we discussed during the last quarter's call, we anticipated a heavier disposition activity during the back half of the year as a way to bring down leverage and be in a position to make opportunistic investments. During the third quarter, we sold 2 properties for $20.9 million at a weighted average exit cap rate of 6.9%, generating gains on sales of $2.5 million.

正如我們在上個季度的電話會議中所討論的那樣，我們預計今年下半年將出現更大規模的處置活動，以此來降低槓桿率並能夠進行機會性投資。第三季度，我們以 2,090 萬美元的價格出售了 2 處房產，加權平均退出上限率為 6.9%，銷售收益為 250 萬美元。

One of the properties sold was a Del Taco restaurant located on an outparcel in Crossroads Towne Center. And the other was a 64,000-square foot single-tenant office building leased to General Dynamics. Year-to-date, through the first 9 months of the year, we've sold 3 properties for $22.9 million at a weighted average exit cap rate of 6.7%, generating gains of sales of $3.3 million.

其中一處出售的房產是位於 Crossroads Towne Center 郊區的 Del Taco 餐廳。另一棟是租給通用動力公司的一棟64,000平方英尺的單租戶辦公大樓。年初至今，截至今年前 9 個月，我們已以 6.7% 的加權平均退出利率，以 2,290 萬美元的價格出售了 3 處房產，產生了 330 萬美元的銷售收益。

Following quarter end, we also announced we completed the sale of Westcliff Shopping Center for $14.8 million and exit cap rate of 5.2%. Until recently, it has been a challenge to generate leasing momentum at this older neighborhood shopping center. So given the recent leasing activity and expected Albertsons credit change, we thought it was a good time to monetize.

接下來的季度末，我們也宣布以 1,480 萬美元的價格完成了 Westcliff 購物中心的出售，退出上限率為 5.2%。直到最近，在這個老舊的社區購物中心創造租賃動力一直是一個挑戰。因此，考慮到最近的租賃活動和預期的艾伯森信用變化，我們認為現在是貨幣化的好時機。

On the acquisition and investment side of our business, it was a relatively quiet quarter. However, we did purchase a 10.6-acre land parcel adjacent to The Collection at Forsyth for $4.3 million. This was a unique opportunity to grow our investment in Collection, which has experienced strong performance since we acquired the property at the end of 2022. Controlling the use of this land ensures that it's complementary to our overall plans for the property. And we have already had strong interest from tenants either looking to directly acquire the land for their own use or looking to lease a to-be-built space.

在我們業務的收購和投資方面，這是一個相對平靜的季度。然而，我們確實以 430 萬美元的價格購買了毗鄰 The Collection at Forsyth 的一塊 10.6 英畝的土地。這是我們增加對 Collection 投資的獨特機會，自我們於 2022 年底收購該房產以來，該項目表現強勁。控制這片土地的使用可確保它與我們對該房產的總體規劃相輔相成。我們已經引起了租戶的強烈興趣，他們要么希望直接購買土地供自己使用，要么希望租賃待建空間。

Year-to-date, we've invested $80 million into 4 retail properties, this most recent land acquisition and one $15 million structured finance investment. In aggregate, we've invested at a blended going-in cash yield of 7.7%. Going forward, while we're disappointed by WeWork's decision to default on their obligations, which negatively impacts our implied fourth quarter 2023 and first quarter 2024 forecasted performance, this wasn't necessarily a surprise. And we're seeking all available remedies.

今年迄今為止，我們已向 4 個零售物業投資了 8,000 萬美元，其中包括最近的土地收購和一項 1,500 萬美元的結構性融資投資。總的來說，我們的投資混合現金收益率為 7.7%。展望未來，雖然我們對 WeWork 決定違約感到失望，這對我們隱含的 2023 年第四季和 2024 年第一季的預測業績產生了負面影響，但這並不一定令人意外。我們正在尋求所有可用的補救措施。

From a transaction perspective, we will continue to prioritize selling smaller non-core assets to either repay floating rate debt or for redeployment into attractive investment opportunities. And operationally, we're optimistic we'll be able to continue our leasing momentum. Business fundamentals for retail and mixed-use properties still remain relatively strong for attractive supply-demand dynamics in what have been resilient retail sales.

從交易角度來看，我們將繼續優先出售規模較小的非核心資產，以償還浮動利率債務或重新部署到有吸引力的投資機會。在營運方面，我們對能夠繼續保持租賃勢頭持樂觀態度。零售和綜合用途物業的業務基本面仍然相對強勁，零售銷售保持彈性，供需動態具有吸引力。

With that, I'll hand the call back over to Matt.

這樣，我會將電話轉回給馬特。

Thanks, John. Starting with an overview of our portfolio, we ended the quarter with 23 properties totaling 4.1 million square feet of leasable space located in 9 states and 14 markets. At quarter-end, portfolio occupancy was 90% and portfolio leased occupancy was 93%.

謝謝，約翰。首先概述我們的投資組合，截至本季末，我們擁有位於 9 個州和 14 個市場的 23 處房產，總面積達 410 萬平方英尺。截至季末，投資組合入住率為 90%，投資組合租賃入住率為 93%。

As John mentioned, our signed but not open or SNO pipeline continues to grow, representing nearly $4 million of incremental future base rent. Within our SNO pipeline, more than half of future rents are related to space that was vacant at the time of acquisition. So the benefit from these new leases is not only the addition of base rent but also the reimbursement income that comes from tenants paying their pro rata share of common area maintenance, insurance and real estate taxes that the company has previously absorbed as non-reimbursable operating expenses.

正如 John 所提到的，我們已簽署但未開放或 SNO 管道繼續增長，相當於未來基本租金的增量近 400 萬美元。在我們的 SNO 管道中，超過一半的未來租金與收購時的空置空間有關。因此，這些新租約的好處不僅是基本租金的增加，而且還包括租戶按比例支付公共區域維護費、保險費和房地產稅的報銷收入，而公司之前將這些收入作為不可報銷的營運費吸收。花費。

Earnings for the third quarter of 2023 were better than forecasted with core FFO per share results accelerating for the fourth quarter in a row. Core FFO for the third quarter of 2023 was $0.47 per share, which was unchanged when compared to the third quarter of 2022. And AFFO decreased 2% to $0.48 per share when compared to the same period of 2022. These results are especially notable given the year-over-year impact of higher interest rates and some of the tenant credit issues impacting our 2023 results that we've discussed on prior calls.

2023 年第三季的獲利優於預期，核心 FFO 每股業績連續第四季加速成長。 2023 年第三季的核心 FFO 為每股 0.47 美元，與 2022 年第三季相比沒有變化。與 2022 年同期相比，AFFO 下降了 2%，至每股 0.48 美元。鑑於利率上升的同比影響以及影響我們2023 年業績的一些租戶信用問題，我們已在先前的電話會議中討論過。

Breaking down the quarterly results further, total revenues increased by over 23% to $28 million. This increase is largely driven by the full period impact of our Q4 2022 and year-to-date 2023 acquisitions such as West Broad Village, The Collection at Forsyth, Plaza at Rockwall and The Exchange at Gwinnett Phase 2 as well as the positive comparable same-property net operating income increases at Exchange at Gwinnett Phase 1, Westcliff Shopping Center, Price Plaza and all of our single-tenant properties.

進一步細分季度業績，總收入成長了 23% 以上，達到 2,800 萬美元。這一增長主要是由我們 2022 年第四季和 2023 年迄今收購的整個期間影響推動的，例如 West Broad Village、Forsyth 的 The Collection、Rockwall 的 Plaza 和 Gwinnett Phase 2 的 The Exchange 以及可比的積極可比收購- Gwinnett Exchange 一期、Westcliff 購物中心、Price Plaza 和我們所有單一租戶物業的物業淨營業收入增加。

These positive gains were partially offset by decreases at some of our properties where we have credit loss or tenants in transition, such as Legacy North, Beaver Creek Crossings, Ashford Lane and Crossroads Towne Center as well as the full period impact of the last 12 months of dispositions.

這些積極的收益被我們一些有信用損失或租戶轉型的物業的減少所部分抵消，例如 Legacy North、Beaver Creek Crossings、Ashford Lane 和 Crossroads Towne Center，以及過去 12 個月的整個期間影響的處置。

Given the meaningful amount of transaction activity we've had over the past 12 months and the fact that our same-property NOI calculation only includes properties we've owned for the entirety of the current period and the comparable prior period, our third quarter and year-to-date same property NOI results do not include four of our largest investments, which are Collection at Forsyth, West Broad Village, Madison Yards and Plaza at Rockwall, and therefore are not completely representative of the operating trends of our overall portfolio. That being said, our same-property NOI for the quarter was down 4.5%, given the dynamics I just discussed.

鑑於我們在過去 12 個月中進行的大量交易活動，以及我們的同一房產 NOI 計算僅包括我們在整個當期和上一時期所擁有的房產這一事實，我們的第三季度和年初至今的相同房產NOI 結果不包括我們最大的四項投資，即Forsyth 的Collection、West Broad Village、Madison Yards 和Rockwall 的Plaza，因此不能完全代表我們整體投資組合的營運趨勢。話雖這麼說，考慮到我剛才討論的動態，我們本季的同屬性 NOI 下降了 4.5%。

As we round out the quarter-over-quarter comparisons, G&A expenses were up year-over-year due to overall organizational growth. And interest expense increased due to higher rates and higher overall debt balances compared to this time last year. Per our announcement in August, we paid a third quarter regular cash dividend of $0.38 per share. This represents a Q3 2023 AFFO payout ratio of 79% and a very attractive current annualized yield of approximately 9.5%.

當我們進行季度環比比較時，由於整體組織的成長，一般管理費用較去年同期增加。與去年同期相比，由於利率上升和整體債務餘額增加，利息支出有所增加。根據我們 8 月的公告，我們支付了每股 0.38 美元的第三季定期現金股利。這意味著 2023 年第三季 AFFO 的支付率為 79%，當前年化收益率約為 9.5%，非常有吸引力。

Shifting to the balance sheet. At the end of the third quarter, our net debt to total enterprise value was 54% and our net debt to pro forma EBITDA decreased slightly quarter-over-quarter to 7.8x. We ended the quarter with total liquidity of more than $110 million, which includes cash, restricted cash and undrawn commitments on our revolving credit facility. With respect to the capital markets, we were opportunistic in the third quarter, repurchasing over 6,000 shares of our Series A preferred stock at an average price of $18.52 per share.

轉向資產負債表。第三季末，我們的淨債務佔企業總價值的比例為 54%，淨債務佔預期 EBITDA 的比例較上季略有下降，降至 7.8 倍。截至本季末，我們的流動性總額超過 1.1 億美元，其中包括現金、限制性現金和循環信貸額度中未提取的承諾。在資本市場方面，我們在第三季進行了機會主義的投資，以每股18.52美元的平均價格回購了6,000多股A系列優先股。

We also put in place $160 million of forward starting interest rate swaps to hedge against potentially higher future interest rates when our existing in-place interest rate swaps expire. More specifically, the $160 million of new forward starting SOFR swaps represent approximately 60% of our existing term loan rollover exposure. And their start dates are laddered beginning in 2026, 2027 and 2028 with 5-year durations that hedge against floating interest rates through 2031, 2032 and 2033.

我們也設立了 1.6 億美元的遠期起始利率掉期，以對沖現有就地利率掉期到期時可能出現的更高的未來利率。更具體地說，1.6 億美元的新遠期起始 SOFR 掉期約占我們現有定期貸款展期風險的 60%。它們的啟動日期從 2026 年、2027 年和 2028 年開始，期限為 5 年，可對沖 2031 年、2032 年和 2033 年的浮動利率。

While the rates are slightly different by tranche, the effective all-in rates would be in the mid-5s after accounting for the fixed swap rate, current spread and SOFR adjustment factor in our existing debt agreement. The origination of these swaps is not meant to be a bet against the forward yield curve over the next 10 years, but instead, a risk-adjusted way to lock in what we believe are attractive long-term interest rates and match those rates with our existing and future long-term investments.

雖然不同批次的利率略有不同，但考慮到我們現有債務協議中的固定掉期利率、當前利差和 SOFR 調整因素後，有效的總利率將在 5 左右。這些掉期的起源並不是為了對未來10 年的遠期殖利率曲線進行押注，而是一種風險調整後的方式，以鎖定我們認為具有吸引力的長期利率，並將這些利率與我們的利率相符。現有和未來的長期投資。

From a guidance perspective, we are increasing our 2023 core FFO and AFFO earnings guidance to take into account our third quarter results and go-forward expectations regarding investments, dispositions, capital markets activities and property operations.

從指導角度來看，我們正在提高 2023 年核心 FFO 和 AFFO 盈利指導，以考慮我們第三季度的業績以及有關投資、處置、資本市場活動和房地產運營的未來預期。

For the full year 2023, we've raised the bottom end and lowered the top end of our investment and disposition guidance. And we now anticipate investing between $95 million and $100 million at an initial yield of approximately 7.7%. And we're now forecasting to sell between $38 million and $65 million of assets during 2023 at an exit cap rate between 6.15% and 6.75%.

對於 2023 年全年，我們提高了投資和處置指導的下限並降低了上限。我們現在預計投資 9,500 萬至 1 億美元，初始收益率約為 7.7%。我們現在預測 2023 年將出售 3,800 萬美元至 6,500 萬美元的資產，退出上限率為 6.15% 至 6.75%。

While we are forecasting stronger quarter-over-quarter increases in same-property NOI for the fourth quarter, we have adjusted down our full year forecast for same-property NOI growth and forecasted year-end leased occupancy, given the impact of WeWork's nonpayment and default, as well as the fact we're selling properties that are 100% leased.

雖然我們預計第四季度同物業 NOI 環比增長將更為強勁，但考慮到 WeWork 未付款項和年終租賃入住率的影響，我們下調了全年同物業 NOI 增長預測和年末租賃入住率預測。違約，以及我們出售100% 出租的房產這一事實。

However, given the strength of our third quarter results, momentum at many of our more recent acquisitions and improved expense control, we've increased the midpoint of our core FFO and AFFO guidance ranges by nearly 5% with an $0.08 per share increase to the bottom end of the ranges and a $0.07 per share increase to the top end.

然而，考慮到我們第三季度業績的強勁、最近許多收購的勢頭以及費用控制的改善，我們將核心 FFO 和 AFFO 指導範圍的中點提高了近 5%，每股增加 0.08 美元。範圍的底部，每股增加0.07 美元至頂部。

Overall, we had a solid quarter of execution, and we continue to build leasing momentum and benefit from the strength of our Sun Belt-focused portfolio. We're taking a cautious approach as we move towards the end of the year, given the uncertainty and volatility in the world today. But we're optimistic we can continue to create long-term value for our shareholders.

總體而言，我們的季度執行情況良好，我們繼續建立租賃勢頭，並受益於我們以陽光地帶為重點的投資組合的實力。鑑於當今世界的不確定性和波動性，隨著年底的臨近，我們採取謹慎的態度。但我們對能夠繼續為股東創造長期價值感到樂觀。

With that, I'll now turn the call back to the operator to open the line for questions.

這樣，我現在將把電話轉回接線員以打開提問線路。

(Operator Instructions) Our first question comes from Rob Stevenson with Janney Montgomery Scott.

（操作員說明）我們的第一個問題來自 Rob Stevenson 和 Janney Montgomery Scott。

Matt, how much was the prior rents on the food hall versus the new? And is that going to be open for any meaningful part of fourth quarter? Or for modeling purposes, should we just assume the contribution basically starts in the first quarter?

馬特，美食廣場以前的租金與新的相比是多少？這會在第四季度的任何有意義的部分開放嗎？或者出於建模目的，我們是否應該假設貢獻基本上從第一季開始？

The rent is about 25% lower on the food hall replacement tenant. The food hall is paying 51% and then the new tenant is paying obviously a little bit less. I would assume for modeling purposes, they don't rent commence and start paying rent until January 1. We're hopeful that they'll get opened in December. But it's a fluid process, obviously.

食堂替代租戶的租金大約低 25%。美食廣場支付 51%，而新租戶支付的費用顯然要少一些。出於建模目的，我假設他們要到 1 月 1 日才會開始出租並開始支付租金。我們希望他們能在 12 月開業。但顯然，這是一個流動的過程。

Okay. And then similarly, did WeWork make its September payment? Or was August their last payment? And how much should we be thinking about that as a month?

好的。同樣，WeWork 支付了 9 月份的款項嗎？還是八月是他們最後一次付款？我們每個月應該對此進行多少思考？

August was their last payment. It's about $240,000 a month. So we lost $240,000 in -- for September. And then obviously, we're losing that each month in Q4 and Q1 of next year.

八月是他們最後一次付款。每月約24萬美元。因此，9 月我們損失了 24 萬美元。顯然，我們在明年第四季和第一季每個月都會失去這一點。

Okay. So you've got -- the food hall wasn't contributing basically anything in the third quarter. You did get two of the three WeWork payments. Can you sort of -- what are the other sort of adjustments that we need to be thinking about?

好的。所以你可以看到——食品大廳在第三季基本上沒有做出任何貢獻。您確實收到了三筆 WeWork 付款中的兩筆。您能否說一下—我們需要考慮的其他調整是什麼？

So if I walk through the fourth quarter core FFO guidance, you're $1.28 year-to-date. The low end of your guidance is $1.58. So at the low end, you're $0.30, if I'm doing my math correctly, and at the high end, $0.34 for the fourth quarter versus a $0.47. What's the other adjustments that we need to be thinking about there on a significant basis?

因此，如果我仔細閱讀第四季度核心 FFO 指導，您的年初至今價格為 1.28 美元。您的指導下限為 1.58 美元。因此，如果我計算正確的話，在低端，你的價格是 0.30 美元；在高端，第四季的價格是 0.34 美元，而第四季的價格是 0.47 美元。我們需要在重大基礎上考慮的其他調整是什麼？

Yes. There's a decent amount of percentage rent in the third quarter that won't be in the fourth quarter in part because one of the tenants who pay a significant amount of percentage rent, they have a fiscal year end in August. And so the sort of buildup resets in September.

是的。第三季的租金百分比相當可觀，而第四季則不會，部分原因是其中一位支付大量百分比租金的租戶，他們的財政年度在八月結束。因此，這種累積會在九月重新開始。

And then obviously, we're losing WeWork. We've had a few other tenants who didn't renew. And so they're going to be coming out of cash flow going forward. We sold the Westcliff property. And so obviously, that's sitting in restricted cash until we close out the reverse 1031 that, that goes into. So there's a bunch of different items.

顯然，我們正在失去 WeWork。我們還有其他一些沒有續約的租戶。因此，他們將繼續擺脫現金流。我們賣掉了韋斯特克利夫的財產。很明顯，在我們結束 1031 的反向交易之前，這都是有限的現金。所以有很多不同的物品。

And then to my prepared comments, I would say we are being a little bit conservative. Because some of the rent start dates, we'll see if the tenants get there. And then with the state of the world today, we're not sure if we're going to lose anybody else, but -- so we're being cautious with the fourth quarter. So I would say there is upside to our fourth quarter implied guidance.

然後對於我準備好的評論，我想說我們有點保守。因為有些租金開始日期，我們會看看租戶是否到達那裡。然後考慮到當今世界的狀況，我們不確定是否會失去其他人，但是 - 所以我們對第四季度持謹慎態度。因此，我想說我們第四季的隱含指導有上行空間。

Okay. That's helpful. And then, John, what do you plan to do with the land that you bought at Forsyth? And is that entitled?

好的。這很有幫助。那麼，約翰，你打算如何處理你在福賽斯購買的土地？這有資格嗎？

Yes. So the land has a very flexible commercial zoning, not residential but commercial. It was part of the original plan when Cousins Marketplace was developing us 20-some-odd years ago. And when we bought Collection, it was already under contract with a spa operator, who was going to build like a destination spa sort of thing. And we just kept touch base with Cousins. And when they fell out of contract, we jumped in.

是的。所以這塊土地有非常彈性的商業分區，不是住宅而是商業。這是 20 多年前 Cousins Marketplace 開發我們時最初計劃的一部分。當我們購買 Collection 時，它已經與一家水療中心運營商簽訂了合同，該運營商將建造類似目的地水療中心之類的東西。我們只是和考辛斯保持聯繫。當他們終止合約時，我們就介入了。

There's a dynamic amount of interest in that parcel -- of that size parcel from single users. But it could be multiple users. So we wanted to, in effect, control our adjacent land. And it's going to be a benefit to our property to make sure that the use is complementary to Collection. So we're pretty excited about the opportunity there.

單一使用者對該地塊的興趣是動態的－對於該地塊的大小。但它可能是多個用戶。所以我們實際上想控制我們鄰近的土地。確保該用途與收藏相補充將對我們的財產有利。所以我們對那裡的機會感到非常興奮。

And the time frame for that, is that a few years out? How soon would you be thinking that you'd wind up having some sort of decision as to what's going to go in there and start moving dirt around?

那個時間框架是幾年後嗎？你多久就會想到你最終會做出某種決定，決定將什麼放進去並開始四處移動泥土？

So ideally, we would ground lease it to 1 or 2 users. But as you know, we don't like to spend a lot of development money and -- but we're already having some dialogue with tenants. And a lot of them want to purchase the land rather than doing a lease structure. So we're working through that. But for modeling purposes, it takes a long time and so forth. I would say kind of end of fourth quarter next year would be kind of -- we'd probably have something figured out there, for sure.

因此，理想情況下，我們會將其出租給 1 或 2 個用戶。但如您所知，我們不喜歡花費大量開發資金，而且 - 但我們已經與租戶進行了一些對話。他們中的許多人想購買土地而不是租賃結構。所以我們正在解決這個問題。但出於建模目的，需要很長時間等等。我想說，明年第四季末，我們肯定會找到一些解決方案。

Okay. That's helpful. And then last one for me. John, how are you and the Board thinking about capital deployment and the sort of trade-off between making a $15 million first mortgage during the quarter and buying back stock at $15, $16? How are you sort of balancing that and thinking about that going forward in terms of capital uses?

好的。這很有幫助。然後是我的最後一張。約翰，您和董事會如何考慮資本部署以及本季發放 1500 萬美元第一抵押貸款和以 15 美元、16 美元回購股票之間的權衡？您如何平衡這一點並考慮未來的資本使用？

Yes. So I mean, obviously, we find the stock very -- and the preferred very attractive here. So we certainly discuss that every quarter. But we are hopeful to find some deployment and some opportunities. And where we think that the pricing right now isn't as favorable as you might expect, given the macroeconomic backdrop, and so we're waiting to kind of find that good opportunity to reinvest in investments. But we're being patient. So we're -- so at the same time, we'll take advantage of depressed stock prices but waiting for more of an investment opportunity.

是的。所以我的意思是，顯然，我們發現這隻股票非常——而且優先股非常有吸引力。所以我們每季都會討論這個問題。但我們希望找到一些部署和一些機會。鑑於宏觀經濟背景，我們認為目前的定價並不像您預期的那麼有利，因此我們正在等待找到再投資的好機會。但我們正在耐心等待。因此，我們同時會利用低迷的股價，但等待更多的投資機會。

Okay. I guess, as a follow-up to that, Matt, are you guys getting any benefit from the preferred in terms of credit pricing? Or is it basically just being treated as debt?

好的。我想，作為後續行動，馬特，你們是否從信貸定價方面的首選中獲得了任何好處？或者它基本上只是被視為債務？

It is being treated as equity from a leverage ratio perspective. But obviously, the fixed coupon payment gets picked up in our fixed charge coverage ratio. So it depends on which covenant we're talking about within the facility agreement on how it gets treated.

從槓桿率的角度來看，它被視為股權。但顯然，固定票息支付會納入我們的固定費用覆蓋率。因此，這取決於我們在設施協議中討論的關於如何對待它的盟約。

Okay. So there is some sort of trade-off by buying that back versus equity -- versus the common equity, I should say?

好的。因此，我應該說，回購股票與股票（與普通股）之間存在某種權衡？

That's correct, from a leverage ratio perspective, yes.

沒錯，從槓桿率的角度來看，是的。

(Operator Instructions) Our next question comes from Matthew Erdner with JonesTrading.

（操作員說明）我們的下一個問題來自 JonesTrading 的 Matthew Erdner。

What kind of opportunities are you seeing the most of right now? Is it land financing or just physical properties themselves? And I guess, what are you looking at the hardest at the moment?

您現在最重視什麼樣的機會？是土地融資還是實體財產本身？我想，你現在最看重的是什麼？

Yes. I mean, we're not really seeing a lot of good opportunities right now. It's a kind of a quiet market. People that want to sell assets don't think that this is a great time to be selling an asset. And so we're waiting for some of the sellers that need to sell an asset, whether they have debt maturities or they have a fund life issue or something like that. So the market is fairly quiet right now. We're not looking to buy additional land.

是的。我的意思是，我們現在並沒有真正看到很多好的機會。這是一個安靜的市場。想要出售資產的人並不認為現在是出售資產的好時機。因此，我們正在等待一些需要出售資產的賣家，無論他們有債務到期日還是有基金壽命問題或類似問題。所以目前市場相當平靜。我們不打算購買額外的土地。

The 10 acres next to Collection was unique in expanding the campus and controlling the site. But on the financing side, we're not really searching out financing opportunities. If they come to us, we'll certainly consider them. And it would be more -- if we do a financing deal, we'll probably recycle out of some of our existing investments, and so just keep the size neutral. But yes, we expect probably first quarter, there will be better opportunities out there on the investment side, and so we're being patient.

Collection 旁的 10 英畝土地在擴建校園和控制場地方面具有獨特的意義。但在融資方面，我們並沒有真正尋找融資機會。如果他們來找我們，我們一定會考慮他們。更重要的是，如果我們達成融資協議，我們可能會回收一些現有的投資，因此只需保持規模中立即可。但是，是的，我們預計第一季可能在投資方面會有更好的機會，因此我們保持耐心。

Got you. And then in terms of tenant recycling and ones that didn't renew, could you talk about the leasing activity and what kind of tenants are looking to go into these properties?

明白你了。然後，就租戶回收和未續約的租戶而言，您能否談談租賃活動以及哪些類型的租戶希望進入這些房產？

Yes. I mean, we're having still good leasing activity, especially on our newer acquisitions at West Broad and Collection and Ashford Lane. And it's really a little bit trying to kind of get the right mix of tenants on some of these properties as we've done a lot of the heavy lease-up. And so for instance, soft goods wants to be next to soft goods. And so tenants basically don't want to commit until the other tenant commits. And so we're playing that dance a little bit. But the activity has been very good.

是的。我的意思是，我們的租賃活動仍然很好，尤其是在 West Broad and Collection 和 Ashford Lane 的新收購項目上。由於我們已經進行了大量的租賃工作，因此確實需要嘗試在其中一些房產上找到合適的租戶組合。例如，軟商品希望成為僅次於軟商品的產品。因此，在其他租戶承諾之前，租戶基本上不想承諾。所以我們正在表演一點舞蹈。但活動效果非常好。

And then Legacy, we've seen an uptick of activity on the WeWork space, which has been great to see. We were working with a fitness tenant for about 6 months, who wanted to take all the space, and it would have been a fantastic use for the property. And it just was the economics of the deal, given how much it would cost to do the build-out. We thought it just didn't really make sense. So we terminated those conversations. And now we've picked up conversations on regular way tenants. And that activity has been very, very active in the last 45 days. So we're hopeful there.

然後是 Legacy，我們看到 WeWork 空間的活動增加，這真是太好了。我們與健身租戶合作了大約 6 個月，他想佔用所有空間，這對房產來說是一個絕佳的用途。考慮到擴建的成本，這只是交易的經濟性。我們認為這確實沒有意義。所以我們終止了這些談話。現在我們已經開始與普通路租戶進行對話。在過去 45 天內，該活動非常非常活躍。所以我們對此充滿希望。

Our next question comes from R.J. Milligan with Raymond James.

我們的下一個問題來自 R.J.米利根和雷蒙德詹姆斯。

So in the quarter for the two properties that were sold, a pretty low cap rate, especially given the interest rate environment. I'm just curious when those deals were struck and who were the buyers.

因此，本季出售的兩處房產的資本化率相當低，特別是考慮到利率環境。我只是好奇這些交易是什麼時候達成的以及買家是誰。

So on -- I'll start with General Dynamics, the office building. That was more of a syndicator. And that's where we're seeing a lot of office buyer interest is from groups that are syndicating out equity and looking for attractive below replacement cost properties with good yield and good credit. On Westcliff, the low cap rate is a little bit misdirected in that there's a lot of leases we did recently. But those leases don't come online until next year. So the cap rate does go up next year. But that was a value-add group that was local to that asset.

等等——我將從通用動力公司的辦公大樓開始。這更像是一個辛迪加組織。這就是我們看到許多辦公室買家感興趣的地方，這些集團正在聯合出資，尋找具有良好收益和良好信用、低於重置成本的有吸引力的房產。在韋斯特克利夫，低資本化率有點誤導，因為我們最近做了很多租賃。但這些租約要到明年才會上線。所以明年資本化率確實會上升。但這是該資產本地的增值組。

Got you. And then can you talk about the decision to buy back some preferreds in the quarter versus buying back stock and then the thought process about either buying back preferreds or stock going forward?

明白你了。然後您能否談談在本季回購一些優先股與回購股票的決定，以及關於回購優先股或未來股票的思考過程？

Yes. I mean, we have set rates or set prices on both, where we find those to be attractive on the preferred, buying at the discount to liquidation preference. We find that very, very attractive and a meaningful pickup for our NAV for our shareholders. So it's a way to buy your -- somewhat your liabilities at a big discount. And then the stock, obviously, where we're trading at high 9s dividend yield and way below replacement, our NAV, we obviously have a set price there that we will be very active in the buyback program if the stock continues to be at certain prices.

是的。我的意思是，我們對兩者都設定了利率或價格，我們發現這些價格對優先購買者來說很有吸引力，以清算優先權的折扣購買。我們發現這對我們的股東來說非常非常有吸引力，並且對我們的淨值來說是一個有意義的提升。所以這是一種以很大的折扣購買你的負債的方式。然後，顯然，我們以高 9 的股息收益率進行交易的股票，遠低於替代資產淨值，我們顯然有一個固定價格，如果股票繼續處於特定水平，我們將非常積極地參與回購計劃價格。

And R.J., just to expand on John's comments, these are facilitated through 10b5-1 plans. So it's not like we're resetting the price all the time. It's established at a point in time and then it stays in place going forward under the program.

R.J.，只是為了擴展約翰的評論，這些是透過 10b5-1 計劃促進的。所以我們不是一直在重置價格。它是在某個時間點建立的，然後根據該計劃保持不變。

Got you. And then just one more question on sort of the broader environment, and you guys talked about this in your comments about the time to get to rent commencement. And I'm just curious what you're seeing overall in the sector. Is it taking longer? Are you -- and I think what we've been hearing from the peers is that the time from signing a lease to getting open is taking longer. And I'm just curious what's driving that.

明白你了。然後還有一個關於更廣泛環境的問題，你們在評論中談到了關於開始出租的時間的問題。我只是好奇您對該行業的整體看法。是不是需要更長的時間？我認為我們從同行那裡聽到的是，從簽訂租約到開業的時間越來越長。我只是好奇是什麼推動了這一點。

Yes. That's been the case for some time now. So I don't think that's a new element. I would say that the construction costs have not come down. We're working with a prospective tenant right now, obviously, several prospective tenants, but one that I had a meeting with yesterday, where we brought in a contractor to discuss construction costs. And the build-out of some of the space is 2x what it was 5 years ago.

是的。這種情況已經有一段時間了。所以我不認為這是一個新元素。我想說的是，建設成本並沒有下降。我們現在正在與一位潛在租戶合作，顯然有幾個潛在租戶，但我昨天與其中一位租戶進行了會面，我們聘請了一名承包商來討論建築成本。部分空間的擴建面積是 5 年前的 2 倍。

And the costs are not coming down as much as you would think with activity kind of slowing. So you're still dealing with elevated construction costs, TI costs. And the timing, contractors are still busy. So timing is if you go from a discussion with the tenant right now on signing a lease, you're probably not going to be open for a year. So it's frustrating, but it's something we just have to work through.

而且隨著活動的放緩，成本並沒有像你想像的那樣下降。因此，您仍在應對建築成本和 TI 成本升高的問題。而且時間安排上，承包商依然忙碌。因此，時機是，如果您現在就與租戶討論簽署租約，那麼您可能一年內都不會開業。所以這很令人沮喪，但這是我們必須解決的問題。

Thank you. That concludes the question-and-answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

謝謝。問答環節到此結束。感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。