CTO Realty Growth Inc (CTO) 2024 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the CTO Realty Growth second quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 CTO Realty Growth 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, John Albright, President and CEO. Please go ahead.

現在我想將會議交給今天的發言人、總裁兼執行長約翰·奧爾布賴特 (John Albright)。請繼續。

Good morning, everyone, and thank you for joining us today for the CTO Realty Growth second quarter 2024 operating results conference call. I'm pleased to have Philip Mays, our new Chief Financial Officer, joining me this morning.

大家早安，感謝您今天參加我們的 CTO Realty Growth 2024 年第二季營運業績電話會議。我很高興今天早上我們新任財務長菲利普梅斯 (Philip Mays) 加入我的行列。

Before we begin, I'll turn it over to Phil to provide the customary disclosures regarding today's call. Phil?

在我們開始之前，我將把它交給菲爾，以提供有關今天電話會議的慣例披露。菲爾？

Thanks, John. I would 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.

謝謝，約翰。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。本公司未來的實際績效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陳述的責任。

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 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 文件中會不時更詳細地揭露可能導致實際結果與預期產生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、收益發布補充報告和最新投資者簡報。

With that, I will turn the call back over to John.

這樣，我會將電話轉回給約翰。

Thanks, Phil. We had another strong quarter in all areas of our business. This morning I will provide a brief overview of our second quarter results and highlight the strong leasing environment investment opportunities we are seeing. As of quarter end, over 70% of our rents come from Georgia, Texas, and Florida. And we continue to see the benefits of owning a high-quality portfolio of shopping centers located in strong growth markets in the Southeast and Southwest.

謝謝，菲爾。我們的所有業務領域又迎來了一個強勁的季度。今天早上，我將簡要概述我們第二季的業績，並強調我們看到的強勁的租賃環境投資機會。截至季末，我們 70% 以上的租金來自喬治亞州、德州和佛羅裡達州。我們繼續看到在東南部和西南部強勁成長的市場中擁有高品質購物中心組合的好處。

Starting with our operating business, we had another successful quarter of leasing activity. In the second quarter we signed 79,000 square feet of new leases, renewals and extension at an average rent of $25.87 per square foot, bringing our leasing activity to 183,000 square feet at an average rent of $26.58 per square foot for the first half of 2024.

從我們的營運業務開始，我們的租賃活動又取得了成功的一個季度。第二季度，我們簽署了79,000 平方英尺的新租約、續租和延期合同，平均租金為每平方英尺25.87 美元，使我們的租賃活動在2024 年上半年達到183,000 平方英尺，平均租金為每平方英尺26.58 美元。

This leasing activity was spread across our portfolio, but heavier said Ashford Lane in Atlanta and West Broad Village in Richmond. Our comparable lease spreads were 9% in the second quarter and 41% in the first half of 2024. As discussed on our last call that 41% growth in the first half includes the significant impact of replacing Regal Cinemas at Beaver Creek Crossing in Raleigh with a fitness operator scheduled to open in mid-2025.

這種租賃活動遍布我們的投資組合，但更重要的是亞特蘭大的 Ashford Lane 和里士滿的 West Broad Village。2024 年第二季我們的可比租賃利差為 9%，上半年為 41%。正如我們在上次電話會議中所討論的，上半年 41% 的增長包括將羅利 Beaver Creek Crossing 的 Regal 電影院替換為計劃於 2025 年中期開業的健身運營商所帶來的重大影響。

We ended the quarter with physical occupancy of 92.6%, an increase of 2.3% from year end 2023, and leased occupancy of 94.6% to 200 basis points spread between physical and lease occupancy represents almost $5 million of future cash rents. In nearly 6% of our current in-place cash base rent. We will receive some earnings benefit from these leases in the second half of 2024, but most of the benefit will ramp up throughout 2025 at the new tenants take possession.

截至本季末，實體入住率為92.6%，較2023 年底成長2.3%，租賃入住率為94.6%，實體入住率與租賃入住率之間的差值為200 個基點，相當於未來現金租金的近500 萬美元。占我們目前現金基本租金的近 6%。我們將在 2024 年下半年從這些租賃中獲得一些收益，但大部分收益將在 2025 年新租戶入住時增加。

We are also in negotiations to lease approximately 24,000 square feet of the former Earth Fare store at Collection and Forsyth Atlanta in 19,000 square feet of the space formerly leased by WeWork at the shops at Legacy in Plano Texas.

我們也正在談判租用亞特蘭大 Collection 和 Forsyth 前 Earth Fare 商店約 24,000 平方英尺的空間，該空間位於 WeWork 之前在德克薩斯州普萊諾 Legacy 商店租用的 19,000 平方英尺空間。

Turning to investments, after an active first quarter, which included acquiring the marketplace of Seminole Towne Center in Sanford submarket of Orlando, we had a relatively quiet second quarter purchasing 1.4 acres of vacant land for $1.5 million for the future development within our West Broad Village property in Richmond.

談到投資，在經歷了活躍的第一季（包括收購奧蘭多桑福德子市場的塞米諾爾鎮中心市場）之後，我們在第二季度相對平靜，以150 萬美元購買了1.4 英畝的空置土地，用於西布羅德村的未來開發里士滿的房產。

More importantly, we are optimistic that we will be successful with some acquisitions in our target markets, which we would expect to close in the third quarter. Accordingly, we have increased our outlook for investments for the full year of 2024 to a range of $200 million to $250 million.

更重要的是，我們樂觀地認為，我們將在目標市場成功進行一些收購，預計將在第三季完成。因此，我們將 2024 年全年的投資前景上調至 2 億至 2.5 億美元。

On the dispositions front, although no transactions were completed during the quarter, we have a non-refundable $18 million sales contract for Jordan Landing our property in Utah with closings scheduled in August. We will continue to prioritize selling our few small remaining noncore assets for redeployment into attractive investment opportunities in larger format open-air retail centers.

在處置方面，雖然本季度沒有完成任何交易，但我們與 Jordan Landing 位於猶他州的房產簽訂了一份價值 1800 萬美元的不可退還銷售合同，併計劃於 8 月交割。我們將繼續優先出售剩餘的少量非核心資產，以重新部署到大型露天零售中心的有吸引力的投資機會。

Given the strong results, our portfolio has delivered for the first half of 2024, along with a favorable transaction market, we are seeing we have increased the midpoint of our 2024 core FFO guidance by 12% to a range of $1.81 to $1.86.

鑑於我們的投資組合在 2024 年上半年取得了強勁的業績，加上有利的交易市場，我們將 2024 年核心 FFO 指導的中點提高了 12%，達到 1.81 美元至 1.86 美元的範圍。

Phil will discuss our earnings and guidance in more detail, and I will now hand the call over to him.

菲爾將更詳細地討論我們的收益和指導，我現在將把電話交給他。

Thanks, John. First, it is a privilege for me to join the team here at CTO Realty. The Board and management have done a remarkable job transforming the company's property portfolio. The positive results from this transformed portfolio and strong management team are evident throughout this quarter's results to discussed on today's call.

謝謝，約翰。首先，我很榮幸能加入 CTO Realty 的團隊。董事會和管理層在改變公司的房地產投資組合方面做得非常出色。這一轉型後的投資組合和強大的管理團隊所帶來的積極成果在今天電話會議討論的本季業績中顯而易見。

Currently, the company's property portfolio consists of 20 properties comprising 3.9 million square feet located in eight states and 11 markets. More specifically substantially all of these properties are located in business-friendly markets in the Southeast and Southwest, with demographics supportive of outsized long-term growth.

目前，該公司的房地產投資組合包括 20 處房產，面積達 390 萬平方英尺，分佈在 8 個州和 11 個市場。更具體地說，基本上所有這些房產都位於東南部和西南部的商業友善市場，人口結構支持超額長期成長。

Accordingly, they benefit from strong tenant demand as evidenced in occupancy leasing spreads and same property NOI growth. As John previously mentioned, at quarter end, physical occupancy was 92.6% and leased occupancy was 94.6% with a spread between them representing almost $5 million of annualized cash base rents that will primarily contribute to NOI and earnings growth in 2025.

因此，他們受益於強勁的租戶需求，入住率租賃價差和相同的房產 NOI 成長證明了這一點。正如John 先前提到的，截至季末，實體入住率為92.6%，租賃入住率為94.6%，兩者之間的差額相當於近500 萬美元的年化現金基礎租金，這將主要有助於2025 年的NOI 和獲利成長。

Same-property NOI for the second quarter increased by 2% compared to the same period in the prior year. For the first six months of 2024 same-property NOI growth was 4% compared to the first six months of 2023. The growth for the first six months of 2024 was driven by lease up and additionally benefited from higher percentage rents received in the first quarter of 2024 from certain tenants that pay percentage rent on an annual basis after year end.

第二季同物業NOI較去年同期成長2%。與 2023 年前六個月相比，2024 年前六個月同物業 NOI 成長了 4%。2024 年頭六個月的成長是由租約推動的，此外還受益於某些租戶在 2024 年第一季收到的較高百分比租金，這些租戶在年底後按年支付百分比租金。

Moving to earnings, core FFO was $0.45 per share for the quarter, representing 5% growth compared to the same period in the prior year. And AFFO was $0.48 per share for the quarter, consistent with the same period in the prior year. For the first six months of 2024, core FFO was $0.93 per share and AFFO was $1 per share, representing growth of 13% and 10%, respectively, compared to the first six months of 2023.

轉向獲利，本季核心 FFO 為每股 0.45 美元，較上年同期成長 5%。本季 AFFO 每股收益為 0.48 美元，與去年同期持平。2024 年前六個月，核心 FFO 為每股 0.93 美元，AFFO 為每股 1 美元，較 2023 年前六個月分別成長 13% 和 10%。

Core FFO growth for both the quarter and first six months of 2024 outpaced AFFO growth due to a $450,000 non-cash write-off of straight-line rents receivable in the second quarter of last year associated with our former food hall tenant at Ashford Lane. As disclosed in our press release and other filings, our AFFO excludes non-cash items such as straight-line rent that can cause short-term fluctuations in earnings with no impact on operating cash flows and for that reason, we present AFFO in addition to FFO.

2024 年第二季和前六個月的核心 FFO 成長均超過了 AFFO 成長，原因是去年第二季與我們位於 Ashford Lane 的前食堂租戶相關的應收租金以非現金方式沖銷了 45 萬美元。正如我們的新聞稿和其他文件中所揭露的，我們的 AFFO 不包括非現金項目，例如直線租金，這些項目可能會導致收益短期波動，但不會影響營運現金流，因此，除了FFO。

As we announced in May, we distributed second quarter regular cash dividend of $0.38 per share, resulting in a Q2 2024, AFFO payout ratio of 79%, and then an attractive current annualized yield of approximately 8%. Consistent with past practice towards the end of August, we will announce our quarterly dividend amount for the third quarter.

正如我們在5 月宣布的那樣，我們派發了每股0.38 美元的第二季度定期現金股息，導致2024 年第二季度AFFO 派息率為79%，當前年化收益率頗具吸引力，約為8 %。與過去的做法一致，我們將在八月底公佈第三季的季度股息金額。

Turning to our balance sheet, we ended the quarter with net debt to total enterprise value of 48%, net debt to EBITDA of 7.5 times, $155 million of liquidity and a staggered debt maturity schedule. As previously announced early in the second quarter, we issued 1.7 million shares of our Series A preferred stock for net proceeds of $33.1 million.

談到我們的資產負債表，本季結束時，我們的淨負債佔企業總價值的 48%，淨負債佔 EBITDA 的 7.5 倍，流動資金為 1.55 億美元，債務到期時間表也分階段進行。正如先前在第二季初宣布的那樣，我們發行了 170 萬股 A​​ 系列優先股，淨收益為 3,310 萬美元。

Additionally, during the quarter, we issued almost 250,000 common shares under our ATM program for total net proceeds of $4.3 million. These combined proceeds of approximately $38 million along with $15.2 million of proceeds received in connection with the repayment of one of our loan investments were used to pay down our revolving credit facility and reduced the balance to $150 million outstanding at quarter end.

此外，本季度，我們根據 ATM 計劃發行了近 250,000 股普通股，淨收益總額為 430 萬美元。這些總計約 3,800 萬美元的收益加上與償還我們一項貸款投資相關的 1,520 萬美元收益，用於償還我們的循環信貸額度，並將季度末未償還餘額減少到 1.5 億美元。

Further, as disclosed in our earnings release and supplemental reporting package, we have previously entered into stoker rate swaps for notional amounts that cover all of our term loans and $150 million of our revolving credit facility, thereby leaving no floating rate interest exposure at quarter end.

此外，正如我們的收益發布和補充報告包中所披露的，我們之前已對名義金額進行了斯托克利率掉期，涵蓋我們所有的定期貸款和1.5 億美元的循環信貸額度，從而在季度末不留下浮動利率利息敞口。

Lastly, a guidance update with our strong first half results and current outlook, we are increasing our full year 2024 core FFO guidance to a range of $1.81 to $1.86 per share and AFFO guidance to a range of $1.95 to $2 per share. At the midpoint this represents a 12% increase to core FFO guidance and a 11% increase to AFFO guidance.

最後，根據我們強勁的上半年業績和當前前景進行指導更新，我們將 2024 年全年核心 FFO 指導提高至每股 1.81 美元至 1.86 美元，將 AFFO 指導提高至每股 1.95 美元至 2 美元。在中點，這意味著核心 FFO 指導值增加 12%，AFFO 指導值增加 11%。

Most of the assumptions underlying our 2024 guidance remain unchanged except for investments. As John discussed, we are optimistic about acquisitions in the second half of the year. Accordingly, we have increased our anticipated full year 2024 investments to range of $200 million to $250 million and an initial cash yield range of 8.5% to 9%.

除投資外，我們 2024 年指引的大部分假設保持不變。正如約翰所討論的，我們對下半年的收購持樂觀態度。因此，我們將 2024 年全年預期投資增加至 2 億至 2.5 億美元，初始現金收益率為 8.5% 至 9%。

As a reminder, our investment assumptions are inclusive of both properties and loans. Currently, we are not increasing our disposition range of $50 million to $75 million. However, should we land on the high end of our investment range, it is possible that we could exceed our disposition range as we would look to opportunistically dispose of one or more of our few remaining non-core assets.

提醒一下，我們的投資假設包括房地產和貸款。目前，我們不會將處置範圍擴大到 5,000 萬美元至 7,500 萬美元。然而，如果我們達到投資範圍的高端，我們可能會超出我們的處置範圍，因為我們會尋求機會處置我們為數不多的剩餘非核心資產中的一項或多項。

With that, I will 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)

（操作員說明）

RJ Milligan, Raymond James.

RJ 米利根，雷蒙德詹姆斯。

Good morning, guys, and welcome Phil. John, I was wondering if you could just talk about the environment today in terms of what gives you the confidence to increase the guidance and maybe a comment as to what we should expect in terms of the mix between loans and regular-way investments?

早上好，夥計們，歡迎菲爾。約翰，我想知道您是否可以談談今天的環境，即是什麼讓您有信心增加指導，也許還可以評論一下我們在貸款和常規投資之間的組合方面應該期待什麼？

Sure. Thanks, RJ. Yeah. So I've probably mentioned this on the last call. We're seeing a fair amount of opportunities we've been actively pursuing. A lot of what we've been seeing are quality properties in good locations. We missed on one earlier this year. That was fairly sizable based on due diligence, but we're able to we have one right now in our line of sights that gives us confidence and in this upward guidance of acquisitions.

當然。謝謝，RJ。是的。所以我可能在上次通話中提到了這一點。我們看到了很多我們一直在積極追求的機會。我們看到的很多都是地段優越的優質房產。今年早些時候我們錯過了一次。根據盡職調查，這是相當大的，但我們現在能夠看到一個讓我們對收購的向上指導充滿信心的人。

And then as far as your question as far as the mix primarily is core real estate power center shopping centers that were looking to buy. I would say that out of the mix is 80% of its core acquisitions, then 20% is more structured investments.

至於你的問題，就組合而言，主要是希望購買的核心房地產動力中心購物中心。我想說的是，其中 80% 是其核心收購，然後 20% 是更具結構性的投資。

That's helpful in terms of obviously, a decent increase in guidance. And so I think that might imply that you expect to close some of these transactions sooner rather than later. I'm just curious, number one from a modeling perspective, if you could give us an idea on timing expectations and then funding sources?

顯然，這對指導的大幅增加是有幫助的。因此，我認為這可能意味著您希望盡快完成其中一些交易。我只是很好奇，從建模的角度來看，第一，您能否給我們關於時間預期和資金來源的想法？

Yeah. So we had hope on a fairly sizable transaction for us that we have something that we basically able to close on it let's call it 60 days and we have the capacity of our line credit facilities to do the acquisition. And so as you know, we obviously are been pretty good about the recycling assets. So we in addition to one property, we have more or less going into the closing process or under contract. We have other assets that we're looking to sell as well.

是的。因此，我們對一筆相當大的交易抱持希望，我們基本上能夠在 60 天之內完成交易，我們的信貸額度有能力進行收購。如您所知，我們顯然在回收資產方面做得很好。因此，除了一處房產外，我們還或多或少進入了交割流程或簽約。我們還有其他資產正在尋求出售。

Okay. That's it for me. Thank.

好的。對我來說就是這樣。感謝。

Thanks.

謝謝。

Gaurav Mehta, Alliance Global Partners.

Gaurav Mehta，聯盟全球合作夥伴。

Thank you. Good morning. I wanted to follow up on the investment guidance question. I wanted to get some more color on the CapEx as well. It seems like you raised the CapEx guidance as well to 8.5 to 9 from a lower cap rate expectation previous guidance. And was wondering if that's specific to the acquisitions that you're looking at or is that what you're seeing in the market?

謝謝。早安.我想跟進投資指導問題。我還想對資本支出有更多的了解。您似乎也將資本支出指引從先前較低的資本化率預期指引值提高到了 8.5 至 9。想知道這是否是您正在考慮的收購所特有的，還是您在市場上看到的？

A combination what we're pursuing in what we've been making some acquisition offers on and feel like we are where we know, we can probably acquire assets at the end, the combination of the structured investments. So it's a blend with the two, but you definitely comprise of what we see that we think is a transactable as far as our acquisitions.

我們一直在提出一些收購要約，我們所追求的結合是我們所知道的，我們最終可能會收購資產，即結構性投資的結合。因此，它是兩者的混合體，但就我們的收購而言，您肯定包含我們認為可交易的內容。

And as a follow-up on the early repayment of seller financing loan, any color on what drove that early refinancing early repayment, I'm sorry.

作為賣方融資貸款提前償還的後續行動，對於推動提前再融資提前償還的任何原因，我很抱歉。

I'm sorry, can you ask that again?

抱歉，您能再問一次嗎？

Yes, I think in the quarter you had $15.2 million early repayment of the seller financing loan. Just wanted to know who that --

是的，我認為在本季度您提前償還了 1520 萬美元的賣方融資貸款。只是想知道那是誰--

Yeah, that was on the forward stable office building. We sold in Tampa that I think we announced that in the second quarter. I believe -- sorry in the last earnings call. And so that was one where we allowed the other seller financing to close earlier for a little bit of a discount.

是的，那是在前穩定辦公大樓。我們在坦帕出售了我認為我們在第二季宣布的。我相信——在上次的財報電話會議上表示抱歉。因此，我們允許其他賣方融資提前結束，並獲得一點折扣。

Okay, thank you. That's all I have for.

好的，謝謝。這就是我的全部目的。

Rob Stevenson, Janney Montgomery Scott.

羅布史蒂文森，珍妮蒙哥馬利斯科特。

Good morning, guys. John, beyond the 24,000 square feet in Atlanta and the 19,000 in Plano that you talked about your comments where the other larger pockets of current or future vacancy that you're working on today, where there isn't a signed tenant yet.

早安，夥計們。約翰，除了您談到的亞特蘭大 24,000 平方英尺和普萊諾 19,000 平方英尺之外，您今天正在處理的其他較大的當前或未來空缺區域，還沒有簽約租戶。

Yeah. I mean, those are the some of the big ones for sure. But the balance of that we workspace the amount of as mentioned on the 20,000 square foot roughly of the WeWork space, that's basically a third of it. So we still have some wood to chop there on the balance of the space. The good news is we're seeing increased activity in that market, which is great. And so I'd love to see that. And then as far as where the rest of the spaces.

是的。我的意思是，這些肯定是一些大的。但我們的工作空間的其餘部分，如上面提到的 WeWork 空間的大約 20,000 平方英尺，基本上是其中的三分之一。所以我們仍然有一些木材可以在空間的平衡上砍伐。好消息是我們看到該市場的活動增加，這很棒。所以我很樂意看到這一點。然後直到剩下的空間。

Yeah, we have roughly 210,000 square feet of vacancy throughout the portfolio and everything else is fairly scattered. So of smaller spaces, there's not those are the two big ones would be or a fair, which looks like we have a lease signed up and then the WeWork space for sure. And that's what we've been working on pretty hard to get that addressed.

是的，我們整個投資組合中大約有 210,000 平方英尺的空置空間，其他一切都相當分散。因此，對於較小的空間，沒有兩個大空間或展覽會那樣的空間，看起來我們已經簽訂了租約，然後肯定是 WeWork 空間。這就是我們一直在努力解決的問題。

Okay, that's helpful. And then back to the acquisition sort of track, how aggressively are you guys pursuing mixed use assets these days? Is it focus really retail only and you'll do a mixed use asset if it's a great deal and it falls in your lap or are you still aggressively pursuing mixed use assets going forward?

好的，這很有幫助。然後回到收購的話題，你們現在對混合用途資產的追求有多積極？它是否真的只專注於零售，如果它很划算並且落在你的腿上，你會做混合用途資產，或者你仍然積極追求未來的混合用途資產？

Yeah, we're right now, there's no mixed use assets in the pipeline. It's primarily our core retail open-air centers.

是的，我們現在，管道中沒有混合用途資產。它主要是我們的核心露天零售中心。

Okay. That's helpful. And then, Phil, main contributors to the increased guidance beyond just some of the better leasing anything, any big slugs that drove up the outlook for the rest of the year?

好的。這很有幫助。然後，菲爾，除了一些更好的租賃之外，增加指導的主要貢獻者，還有哪些大的項目​​推動了今年剩餘時間的前景？

Yeah, I think it falls into four buckets, the first one being the investment activity, both loans and properties. And the second, as John touched on, the timing of them also, right. I think we're seeing acquisitions, lead dispositions so that also drove it. And then we got the first half of the year behind us with very, very strong results.

是的，我認為它分為四個部分，第一個是投資活動，包括貸款和房地產。第二，正如約翰所談到的，他們的時機也是正確的。我認為我們看到了收購和主導處置，這也推動了它。然後我們在上半年取得了非常非常強勁的業績。

And then maybe I know initially a little conservatism in guidance early in the year, especially with the, you know, out of CFO just being kind of prudent early in the year, kind of taken a pause in those four buckets. You can kind of spread the increased guidance across them.

然後，也許我最初知道今年年初的指導意見有些保守，尤其是首席財務官在今年年初表現得很謹慎，在這四個方面暫停了。您可以將增加的指導分散到他們身上。

All right. That's helpful. Thanks, guys, and have a great weekend.

好的。這很有幫助。謝謝，夥計們，祝週末愉快。

Thank you too.

也謝謝你。

Matthew Erdner, Jones Trading.

馬修‧艾德納，瓊斯貿易公司。

Hey, good morning, guys. Thanks for taking the question. I'd like to follow up on the investment opportunities and kind of the higher yield. So some of these open-air shopping centers, are you guys kind of targeting ones with maybe some lower occupancy or some, I guess, facilities that need some capital improvement to kind of get that increase cap rates?

嘿，早上好，夥計們。感謝您提出問題。我想跟進投資機會和更高的收益率。那麼，在這些露天購物中心中，你們的目標是那些入住率較低的購物中心，還是一些我想需要一些資本改善才能提高上限率的設施？

Yeah, good question. I mean, we certainly are seeing some properties that need some capital, not an incredible amount of capital, but definitely a fair amount of upfront capital to refresh the properties, not we're not seeing on the acquisition side, more or less a lot of vacancy. There's vacancy, but it's not a big component of it.

是的，好問題。我的意思是，我們確實看到一些房產需要一些資本，不是大量的資本，但絕對是相當數量的前期資本來更新房產，而不是我們在收購方面沒有看到的，或多或少很多的空缺。空缺是有的，但佔比並不大。

Got you. That's helpful. And then turning to the loan, should we expect any other early payoffs or is this kind of a one-time thing?

明白你了。這很有幫助。然後轉向貸款，我們是否應該期待任何其他早期回報，或者這是一次性的事情？

Yeah, no, nothing in front of us right now that's going to be paying off anytime soon.

是的，不，目前擺在我們面前的任何事情都不會很快得到回報。

Thank you, guys. That's all for me.

謝謝你們，夥計們。這就是我的全部。

Thank you.

謝謝。

John Massocca, B. Riley Securities.

約翰‧馬索卡 (John Massocca)，B. 萊利證券 (Riley Securities)。

Good morning. So it sounds like a lot of the investment pipeline is pretty far along at this point and therefore, kind of your pricing on that was a while ago. But maybe as you look beyond what's kind of close in the pipeline today or even some of the deals, they're a little more up in the air that you have in the pipeline today.

早安.因此，聽起來目前很多投資管道都已經進行得很遠了，因此，您的定價是不久前的事了。但也許當你超越今天即將完成的交易甚至某些交易時，你會發現它們比今天正在醞釀中的交易更加懸而未決。

Are you seeing any pressure on cap rates given some of the moves in interest rates you've seen over the last couple of weeks?

鑑於過去幾週利率的一些變動，您是否認為資本化率面臨任何壓力？

Yeah, I mean, I would say that the pressure on cap rates are kind of in the larger type of assets in major MSAs. Yeah, I would say more of the almost the $200 million sort of asset seemed to get more of the pricing pressure, the assets that were basically you're pursuing. We really are trying to avoid being the real core institutional capital that wouldn't be chasing days and so trying to buy around the edges. So we're not seen as much cap rate compression there, yet we expected. So that's kind of why we're trying to get busy on the acquisition front.

是的，我的意思是，我想說，資本化率的壓力來自於主要管理服務協議中較大類型的資產。是的，我想說，幾乎 2 億美元的資產似乎承受了更多的定價壓力，這些資產基本上是你所追求的。我們確實在努力避免成為真正的核心機構資本，因為它們不會追逐日子，因此試圖在邊緣買入。因此，我們並沒有看到上限利率受到如此大的壓縮，但這是我們預期的。這就是我們努力在收購方面忙碌的原因。

Okay. And then it probably extends to most of the disposition side of things, but are you seeing any loosening of kind of banking market getting a little more active, if you will, in terms of financing transactions?

好的。然後它可能會擴展到大部分處置方面，但是您是否看到銀行市場的鬆動在融資交易方面變得更加活躍（如果您願意的話）？

Yeah, seems likely the CMBS market has been very helpful for some folks that are selling assets. Are there for the acquirers that look for secured debt that's been really helping the transaction market for sure. So we don't little like to see that because it brings in more competition from folks that are using leverage on the asset basis. But there is better leverage out there. And so that's been helping the transaction market for sure.

是的，CMBS 市場似乎對一些出售資產的人非常有幫助。對於尋求擔保債務的收購方來說，這確實確實有助於交易市場。因此，我們不太希望看到這種情況，因為這會帶來來自在資產基礎上使用槓桿的人們的更多競爭。但還有更好的槓桿。所以這肯定對交易市場有幫助。

And then in terms of kind of financing the investment pipeline taking on the debt side, what are you seeing in terms of your own cost of debt capital?

然後，就債務方面的投資管道融資而言，您對自己的債務資本成本有何看法？

We know we're largely an unsecured borrower. So just in terms of maybe terming out the line or some debt to get full or doing another term loan five year swaps have come in they're under four now in our spreads, about 135 business that we could probably do in all in fixed 5-year term loan, right, in the neighborhood of 5% right now.

我們知道我們很大程度上是無擔保借款人。因此，就可能終止貸款或一些債務以全額償還或進行另一項定期貸款五年期掉期而言，它們現在在我們的利差中低於四，大約135 項業務我們可能總共可以在固定5 年內完成年期貸款，對吧，目前利率在 5% 左右。

Would there be any interest in pursuing mortgages depending on what the investment looks like or is it pretty much all going to be in the term loan market if you do from here?

根據投資的情況，是否有興趣尋求抵押貸款，或者如果您從這裡開始，它幾乎全部都會出現在定期貸款市場上？

We don't like to do of the secured debt on assets that keeps the flexibility because the folks that we see something we want to sell it, it just makes it a lot better transaction for us.

我們不喜歡對保持靈活性的資產進行擔保債務，因為我們看到我們想出售它的人，這只會讓我們的交易變得更好。

Okay. That's it for me. Thank you very much.

好的。對我來說就是這樣。非常感謝。

Thank you.

謝謝。

Michael Gorman, BTIG.

邁克爾·戈爾曼，BTIG。

Yeah, thanks. Good morning. Just a quick question following up on the signed, but not open pipeline, John, that you mentioned about the incremental almost $5 million kind of coming online over the course of 2025. How much of that will be a net add versus how much should we think about there's kind of just the durable spread between leased and occupied space that will always be there. So if we think about that 260 basis points were 250 basis points gap, like what would that normalize to as you think about the business?

是的，謝謝。早安.約翰，我想問一個關於已簽署但尚未開放的管道的簡短問題，您提到了 2025 年將增加近 500 萬美元的投入。其中有多少將是淨增加，而我們應該考慮多少是租賃空間和占用空間之間永遠存在的持久價差。因此，如果我們考慮 260 個基點相當於 250 個基點的差距，當您考慮業務時，這會正常化到什麼程度？

I mean, I look at it, you know, the signed not open and kind of pipeline as that is something that we've been really talking about in the last couple of quarters for sure that's what we feel like the market has been missing with us that we've been doing a lot of leasing and these tenants take a while to get open and now are finally seeing this bear fruit. So that any of that $5 million is obviously pretty big number. With regards to our portfolio. But one thing is beyond that.

我的意思是，我看看它，你知道，簽署的未開放和某種管道，因為這是我們在過去幾個季度中一直在真正談論的事情，這肯定是我們認為市場一直缺少的東西我們一直在進行大量的租賃，這些租戶需要一段時間才能開業，現在終於看到了成果。因此，這 500 萬美元顯然是一個相當大的數字。關於我們的投資組合。但有一件事還不止於此。

Yes, we do have a lot of in-place tenants with low lease rates that if you think about, they have an average vintage of ours assets near being, call it, they were built like 15 years ago of these leases are below market. And so we hope to get back some of these spaces. The one example I give quite a bit is the Tuesday morning space in Beaver Creek in Raleigh, where we now have opened a total line at over double the rest.

是的，我們確實有很多租賃率低的就地租戶，如果你想一想，他們的資產的平均年份接近，可以這麼說，他們是 15 年前建造的，這些租賃低於市場價格。所以我們希望能拿回其中一些空間。我經常舉的一個例子是羅利在周二早上 Beaver Creek 的空間，我們現在在那裡開設的總線路數量是其他線路的兩倍以上。

And so we are and that's as far as you know, we would love buying properties with little bit of vacancy where we can move up the numbers, but that's less to do with the replacement rents, but whenever wherever we do see or replacement opportunity there is uplift, but it's mainly new leasing.

所以我們就是這樣，據你所知，我們很樂意購買空置很少的房產，這樣我們就可以增加數量，但這與重置租金關係不大，但無論何時我們確實看到或有重置機會是提升，但主要是新租賃。

Okay. That's helpful. And then maybe just an additional question on the financing front. I appreciate all the color around the debt side. Maybe as you think about the equity here, obviously off to a good start in the third quarter which is nice to see given the volatility that we've seen in the capital markets, just strategically, how do you think about opportunistically tapping equity markets and preloading the balance sheet for the opportunity set as you start to think about 2025?

好的。這很有幫助。然後也許只是融資方面的另一個問題。我欣賞債務方面的所有色彩。也許當你想到這裡的股票時，顯然第三季度有一個良好的開端，考慮到我們在資本市場上看到的波動，這是很高興看到的，只是從戰略上講，你如何考慮機會主義地利用股票市場和當您開始考慮 2025 年時，是否會預先加載資產負債表以獲取機會集？

Yeah. I mean, obviously, we as you know, we are given that we've been public since 1969. And we've only done one follow on offering in that time period. We've learned to live with without the capital markets, but we certainly love to see the recent strength, especially for the small cap sector. And so for sure, if it makes sense, we'll be looking to grow the company, but we're not trying to rely on the capital markets, given that can be very finicky for these size companies. But we love the backdrop and obviously, given the strength of our earnings and a lot of people coming back into retail like this. That's a great backdrop for us.

是的。我的意思是，顯然，如您所知，我們自 1969 年以來一直是公開的。在那段時間裡，我們只做了一個後續產品。我們已經學會了在沒有資本市場的情況下生存，但我們當然喜歡看到最近的強勢，特別是對於小型股而言。因此，可以肯定的是，如果有意義的話，我們將尋求發展公司，但我們不會試圖依賴資本市場，因為這對這些規模的公司來說可能非常挑剔。但我們很喜歡這樣的背景，顯然，考慮到我們的獲利強勁，而且很多人都像這樣重返零售業。這對我們來說是一個很好的背景。

Okay. Thanks, guys.

好的。謝謝，夥計們。

Thank you.

謝謝。

Thank you. And I'm currently showing no further questions at this time. This does conclude today's conference call. Thank you all for participating. You may now disconnect.

謝謝。目前我沒有提出任何進一步的問題。今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。