Cousins Properties Inc (CUZ) 2022 Q4 法說會逐字稿

Good morning, and welcome to the Cousins Properties Fourth Quarter 2022 Conference Call. (Operator Instructions) Please note this event is being recorded. I would like to turn the conference over to Pam Roper, General Counsel, please go ahead.

早上好，歡迎來到 Cousins Properties 2022 年第四季度電話會議。 （操作員說明）請注意正在記錄此事件。我想將會議轉交給總法律顧問 Pam Roper，請繼續。

Thank you. Good morning, and welcome to Cousins Properties Fourth Quarter Earnings Conference Call. With me today are Colin Connolly, our President and Chief Executive Officer; Richard Hickson, our Executive Vice President of Operations; and Gregg Adzema, our Chief Financial Officer.

謝謝。早上好，歡迎來到 Cousins Properties 第四季度收益電話會議。今天和我在一起的是我們的總裁兼首席執行官 Colin Connolly；我們的運營執行副總裁 Richard Hickson；和我們的首席財務官 Gregg Adzema。

The press release and supplemental package were distributed yesterday afternoon as well as furnished on Form 8-K. In the supplemental package, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. If you did not receive a copy, these documents are available to the quarterly disclosures and supplemental SEC information links on the Investor Relations page of our website, cousins.com.

昨天下午分發了新聞稿和補充包，並在 8-K 表格中提供。在補充包中，公司已根據 Reg G 的要求將所有非 GAAP 財務措施與最直接可比的 GAAP 措施進行了核對。如果您沒有收到副本，可通過我們網站 cousins.com 投資者關係頁面上的季度披露和補充 SEC 信息鏈接獲取這些文件。

Please be aware that certain matters discussed today may constitute forward-looking statements within the meaning of federal securities laws, and actual results may differ materially from these statements due to a variety of risks, uncertainties and other factors, including the risk factors set forth in our annual report on Form 10-K and our other SEC filings.

請注意，今天討論的某些事項可能構成聯邦證券法意義上的前瞻性陳述，實際結果可能因各種風險、不確定性和其他因素而與這些陳述存在重大差異，包括我們關於 10-K 表格的年度報告和我們向美國證券交易委員會提交的其他文件。

The company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events or otherwise. The full declaration regarding forward-looking statements is available in the supplemental package posted yesterday, and a detailed discussion of potential risks is contained in our filings within the SEC.

公司不承擔更新任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。有關前瞻性陳述的完整聲明可在昨天發布的補充包中找到，對潛在風險的詳細討論包含在我們向美國證券交易委員會提交的文件中。

With that, I'll turn the call over to Colin Connolly.

有了這個，我會把電話轉給 Colin Connolly。

Thank you, Pam, and good morning, everyone.

謝謝你，帕姆，大家早上好。

We had a strong fourth quarter at Cousins to close out a productive 2022. On the earnings front, the team delivered $0.66 per share in FFO and same property net operating income increased 2.5% on a cash basis. Importantly, we leased 632,000 square feet during the quarter with a 7.3% cash rent roll-up. Excluding Houston, where we signed a strategic 328,000 square foot renewal and expansion of Apache, the cash rent roll-up was 27.7%.

我們在 Cousins 的第四季度表現強勁，結束了富有成效的 2022 年。在收益方面，該團隊交付了每股 0.66 美元的 FFO，同樣的財產淨營業收入按現金計算增長了 2.5%。重要的是，我們在本季度租賃了 632,000 平方英尺，現金租金累計上漲 7.3%。不包括休斯頓，我們在那裡簽署了 Apache 的 328,000 平方英尺戰略性更新和擴展，現金租金累計為 27.7%。

For the full year of 2022, we executed approximately 2 million square feet of leases with a 9.5% cash rent roll-up. These are terrific results. Before providing an update on our strategy at Cousins, I will share a few observations on the macro environment: First, despite inflation, the Federal Reserve and other central banks around the world have rapidly raised interest rates to slow economic growth. Financial conditions have tightened. In response, companies are becoming more efficient. In some cases, this includes employing fewer people and reducing office space.

2022 年全年，我們執行了約 200 萬平方英尺的租賃，現金租金累計為 9.5%。這些都是了不起的結果。在提供我們在 Cousins 的最新戰略之前，我將分享一些對宏觀環境的觀察：首先，儘管存在通貨膨脹，但美聯儲和全球其他央行已迅速提高利率以減緩經濟增長。金融條件已經收緊。作為回應，公司正在變得更有效率。在某些情況下，這包括僱用更少的人和減少辦公空間。

Second, we are seeing an increase in office utilization. According to Castle, physical office occupancy averaged over 50% during the last week of January, the highest since the start of the pandemic. Austin, our second largest market led the survey at 68%. As the health crisis fades and financial pressures grow, CEOs are increasingly more focused on results and surveys. Rebuilding culture, collaboration and mentoring are now clearly priorities for innovative companies. Return to office mandates have accelerated, and this trend is likely to continue.

其次，我們看到辦公室利用率有所提高。根據 Castle 的說法，實體辦公室的入住率在 1 月的最後一周平均超過 50%，是自大流行開始以來的最高水平。我們的第二大市場奧斯汀以 68% 的支持率在調查中領先。隨著健康危機的消退和財務壓力的增加，首席執行官們越來越關注結果和調查。重建文化、協作和指導現在顯然是創新型公司的優先事項。重返辦公室的要求已經加快，而且這種趨勢可能會持續下去。

Third, there is little to no leasing demand or capital available for older vintage, lower-quality office properties. As a result, the values of these properties will likely reprice to facilitate a repurposing or even a teardown. This process will take time to play out. In the meantime, these types of buildings will likely stagnate and have a reduced impact on the overall office market.

第三，對於老式、低質量的辦公物業，幾乎沒有租賃需求或可用資金。因此，這些財產的價值可能會重新定價，以促進重新利用甚至拆解。這個過程需要時間來完成。與此同時，這些類型的建築可能會停滯不前，對整個寫字樓市場的影響也會減弱。

Lastly, the pipeline for speculative new development projects is shrinking. So what are the implications for office real estate. In the short term, leasing demand is likely to soften, expanding office footprint is challenging amid shrinking headcounts. However, silver linings are taking shape. The office market has begun the process to rebalance. Our customers are returning in greater force. Accelerated obsolescence is reducing the existing inventory. New development is minimal. And after companies rightsize and adapt to a more normalized world, they will grow again. Improving supply and demand fundamentals are not that far over the horizon for premier properties.

最後，投機性新開發項目的儲備正在減少。那麼對寫字樓地產有什麼影響。短期內，租賃需求可能會減弱，在員工人數減少的情況下擴大寫字樓面積面臨挑戰。然而，一線希望正在形成。寫字樓市場已經開始重新平衡的過程。我們的客戶正在以更大的力量回歸。加速淘汰正在減少現有庫存。新的發展是最小的。在公司調整規模並適應更加規範化的世界之後，它們將再次增長。對於優質物業而言，供需基本面的改善並不遙遠。

The trend of growing companies distributing their workforces across attractive, affordable markets in the Sun Belt is still in the early innings. The flight to quality continues. Leasing demand is outsized for premium workplaces in amenitized locations. The puck is headed towards our Sun Belt trophy portfolio. Our conviction around our simple and compelling strategy to build the preeminent Sun belt REIT continues to grow.

成長型公司將其勞動力分佈在陽光地帶有吸引力、負擔得起的市場的趨勢仍處於初期階段。對質量的追求仍在繼續。對於設施齊全的優質工作場所，租賃需求過大。冰球正朝著我們的 Sun Belt 獎杯組合前進。我們對建立卓越的 Sun Belt REIT 的簡單而引人注目的戰略的信念繼續增強。

As I mentioned, market conditions will likely become more challenging in 2023. However, we built Cousins to thrive during all phases of the economic cycle. We are exceptionally well positioned today. Let me highlight why. First, we own the leading Sun Belt trophy office portfolio in the best submarkets in Atlanta, Austin, Charlotte, Tampa, Phoenix, Nashville and Dallas. Likely surprising to some, our customers are growing.

正如我所提到的，到 2023 年，市場狀況可能會變得更具挑戰性。但是，我們建立了 Cousins，使其在經濟周期的所有階段都能蓬勃發展。我們今天處於非常有利的位置。讓我強調一下原因。首先，我們在亞特蘭大、奧斯汀、夏洛特、坦帕、鳳凰城、納什維爾和達拉斯的最佳子市場擁有領先的 Sun Belt 獎杯辦公室組合。可能令某些人感到驚訝的是，我們的客戶正在增長。

During 2022, our renewing customers expanded by 162,000 square feet in total. Importantly, our lease expirations through 2024 averaged just 5.1% per year of annual contractual rent among the lowest in the office sector. This positions us favorably to grow occupancy despite a softer market.

2022 年期間，我們的續約客戶總共增加了 162,000 平方英尺。重要的是，到 2024 年，我們的租約到期年平均僅為年度合同租金的 5.1%，在寫字樓行業中處於最低水平。這使我們有利於在市場疲軟的情況下增加入住率。

Next, our $428 million development pipeline with the office component 63% pre-leased is appropriately sized and positioned for the current climate. We will benefit from meaningful incremental NOI during 2023 and 2024, while having only modest speculative risk. We approached 2022 with caution. While our asset values were repricing, we intentionally and patiently prioritize our best-in-class balance sheet over new investments. Our net debt-to-EBITDA closed the year at 4.9x. This compares to the Green Street sector average of 8.2x. Importantly, we have no significant near-term loan maturities and approximately $950 million available on our $1 billion revolving credit facility.

接下來，我們 4.28 億美元的開發項目（其中 63% 是預租的辦公室部分）的規模和定位都適合當前的氣候。我們將在 2023 年和 2024 年受益於有意義的增量 NOI，同時只有適度的投機風險。我們謹慎地接近 2022 年。在我們的資產價值重新定價的同時，我們有意且耐心地將我們一流的資產負債表優先於新投資。我們的淨債務與 EBITDA 之比在這一年結束時為 4.9 倍。相比之下，綠街行業的平均水平為 8.2 倍。重要的是，我們沒有重大的短期貸款到期，我們的 10 億美元循環信貸額度中有大約 9.5 億美元可用。

Simply put, we have significant liquidity and capacity to pursue compelling new investments in a dislocated market when many peers now lack capital to compete. In closing, we are mindful of the potential impacts of higher interest rates and a slowing economy. However, over the long term, we are optimistic that premier workplaces will separate into its own asset class with improved sentiment. Cousins is in exceptionally strong position. We are in the right Sun Belt markets, we own a trophy portfolio. We have a fortress balance sheet and our talented and creative team is a differentiator.

簡而言之，當許多同行現在缺乏競爭資本時，我們有大量的流動性和能力在混亂的市場中進行有吸引力的新投資。最後，我們注意到利率上升和經濟放緩的潛在影響。然而，從長遠來看，我們樂觀地認為，隨著市場情緒的改善，一流的工作場所將拆分為自己的資產類別。考辛斯處於非常有利的地位。我們處於正確的 Sun Belt 市場，我們擁有一個獎杯組合。我們擁有穩固的資產負債表，我們才華橫溢、富有創造力的團隊是與眾不同的。

Before turning the call over to Richard, I want to thank all of our employees at Cousins who provide excellent service to our customers. Their dedication, resilience and hard work continue to propel us forward. Thank you. Richard?

在將電話轉給理查德之前，我要感謝我們在 Cousins 的所有員工，他們為我們的客戶提供了優質的服務。他們的奉獻精神、韌性和辛勤工作繼續推動我們前進。謝謝。理查德？

Thanks, Colin, and good morning.

謝謝，科林，早上好。

Our operations team closed out 2022 with another solid quarter. I'm very proud of our team for finishing the year well in the midst of a complicated macro backdrop. We remain encouraged that the Sun Belt migration and flight to quality trends are intact. Additionally, we are pleased to see more influential companies and a number of industries calling for employees to spend more time together in the office. We expect this trend to continue.

我們的運營團隊以另一個穩定的季度結束了 2022 年。我為我們的團隊在復雜的宏觀背景下出色地完成這一年感到非常自豪。我們仍然感到鼓舞的是，太陽帶的遷移和向質量趨勢的逃亡是完好無損的。此外，我們很高興看到更多有影響力的公司和許多行業呼籲員工在辦公室共度更多時間。我們預計這一趨勢將繼續下去。

For the fourth quarter, our total office portfolio weighted average occupancy and end-of-period lease percentages were 87.1% and 91%, respectively. Those numbers include the addition of 100 Mill and 92.3% leased and occupied new development in Phoenix into the operating portfolio. Our weighted average occupancy was down 0.2% in the quarter driven primarily by a couple of explorations at San Jacinto Center in Austin and Tempe Gateway and Phoenix, both of which have been partially backfilled. Our lease percentage increased almost a full percent from last quarter, largely driven by the recently announced 328,000 square foot lease for Apache Corporation's new global headquarters at Briarlake Plaza in Houston.

第四季度，我們的辦公樓組合加權平均入住率和期末租賃率分別為 87.1% 和 91%。這些數字包括將菲尼克斯的 100 Mill 和 92.3% 的租賃和占用新開發項目添加到運營組合中。我們的加權平均入住率在本季度下降了 0.2%，這主要是由於在奧斯汀的聖哈辛託中心以及坦佩蓋特威和鳳凰城進行了幾次勘探，這兩個地方都已部分回填。我們的租賃百分比比上一季度幾乎增加了一個百分點，這主要是由於最近宣布的 Apache Corporation 位於休斯頓 Briarlake Plaza 的新全球總部的 328,000 平方英尺租約推動的。

As Colin said, when we announced this lease, this highlights the importance of Premier workplaces and fostering employee collaboration and enhancing company culture. Apache's employees will experience an engaging, state-of-the-art workplace when they arrive at Briarlake, and we are excited to be a part of. In the fourth quarter, we executed 39 office leases totaling 632,000 square feet with a weighted average lease term of 11.6 years. This was our highest quarterly square footage volume of 2022. And excluding new development, it was also the highest since the third quarter of 2019. Our total signed activity for the full year was just under 2 million square feet, a fantastic year of leasing for Cousins. The Apache lease was clearly a big contributor to our fourth quarter leasing volume. However, it also muted overall leasing economics given it was in the relatively weaker noncore Houston market, namely our recent concessions, defined as the sum of free rent and tenant improvements were elevated and weighed on net effective rents.

正如 Colin 所說，當我們宣布這項租約時，這凸顯了 Premier 工作場所以及促進員工協作和提升公司文化的重要性。 Apache 的員工在到達 Briarlake 時將體驗到一個引人入勝的、最先進的工作場所，我們很高興能成為其中的一員。第四季度，我們執行了 39 項辦公租賃，總面積為 632,000 平方英尺，加權平均租期為 11.6 年。這是我們 2022 年最高的季度面積。不包括新開發項目，這也是自 2019 年第三季度以來的最高水平。我們全年的簽約活動總量略低於 200 萬平方英尺，這是租賃的絕佳年份表兄弟。 Apache 租賃顯然是我們第四季度租賃量的重要貢獻者。然而，它也削弱了整體租賃經濟，因為它處於相對較弱的休斯頓非核心市場，即我們最近的讓步，定義為免費租金和租戶改善的總和有所提高，並對淨有效租金造成壓力。

I'm pleased to say that even with our outsized leasing activity in Houston, second-generation net rents for all activity increased 7.3% on a cash basis and in the fourth quarter and 9.5% for the full year. I also want to share some of the metrics behind our fourth quarter leasing activity, excluding Houston, in order to provide better insight into our core markets. Excluding Houston activity, we executed 36 leases in the fourth quarter, totaling 296,000 square feet with a weighted average lease term of 8.1 years. New and expansion leases represented 49% of total leasing activity. 83% of our activity net of Houston was in Austin and Atlanta and activity was balanced in terms of industries. Leasing concessions, excluding Houston, were $5.88 this quarter, 19.7% below our weighted average for the first 9 months of the year.

我很高興地說，即使我們在休斯頓進行了超大規模的租賃活動，第二代所有活動的淨租金在第四季度和第四季度以現金為基礎增長了 7.3%，全年增長了 9.5%。我還想分享我們第四季度租賃活動背後的一些指標，不包括休斯頓，以便更好地了解我們的核心市場。不包括休斯頓活動，我們在第四季度執行了 36 項租賃，總面積為 296,000 平方英尺，加權平均租期為 8.1 年。新租賃和擴展租賃佔總租賃活動的 49%。我們休斯頓 83% 的活動網絡位於奧斯汀和亞特蘭大，並且活動在行業方面是平衡的。本季度，不包括休斯頓在內的租賃優惠為 5.88 美元，比我們今年前 9 個月的加權平均值低 19.7%。

Further, net effective risk this quarter were a company record $30.61 when excluding Houston. Lastly, when excluding Houston's second-generation net rents increased 27.7% on a cash basis in the fourth quarter. From a broader market perspective, the flight to quality continues to bifurcate the market. According to JLL, assets built since 2015 saw 8.1 million square feet of positive net absorption last quarter and 33.8 million square feet in 2022. JLL Research also found that assets less than 10 years old captured 14.1% of gross leasing activity this past quarter, a 22.6% increase in share compared to the previous cycle.

此外，如果不包括休斯頓，本季度的淨有效風險為公司創紀錄的 30.61 美元。最後，如果不包括休斯頓的第二代淨租金，第四季度現金淨租金增長 27.7%。從更廣泛的市場角度來看，對質量的追求繼續使市場分化。根據仲量聯行的數據，自 2015 年以來建造的資產上個季度淨吸納量為 810 萬平方英尺，2022 年為 3380 萬平方英尺。仲量聯行研究還發現，上個季度，使用年限不到 10 年的資產佔總租賃活動的 14.1%，與上一周期相比，份額增加了 22.6%。

Even with the powerful flight to quality trend in our favor, we are seeing some slowing in our leasing pipeline as macroeconomic uncertainty persists and demand from large technology companies pauses. We expect that our total leasing activity is likely to moderate in 2023. In addition to the softening economy, we have modest lease expirations in 2023 at only 5.1% of our annual contractual rent. Thus, we have fewer renewal opportunities during the year. With a smaller sample size of leasing activity, there could also be more volatility in our leasing statistics quarter-to-quarter. This may especially be the case with net rent growth, which is highly geared to the mix of lease size and geography.

即使有強烈的質量趨勢對我們有利，但由於宏觀經濟不確定性持續存在以及大型科技公司的需求暫停，我們看到我們的租賃渠道有所放緩。我們預計我們的總租賃活動在 2023 年可能會放緩。除了經濟疲軟之外，我們在 2023 年的租賃到期僅佔年度合同租金的 5.1%。因此，我們在這一年中的續約機會較少。由於租賃活動的樣本量較小，我們的租賃統計數據的季度波動性也可能更大。淨租金增長尤其如此，這與租賃規模和地理位置的組合高度相關。

For instance, we are in lease negotiations to renew our largest 2023 expiry customer in about 120,000 square feet. They are not a traditional office user and their in-place rent has escalated for a decade. As a result, we expect their net rents to roll down modestly on renewal. Given the size and despite being a fantastic potential lease renewal for Cousins, it could have an outsized impact on leasing metrics in one of the next couple of quarters. With this anticipated renewal of our largest 2023 expiration, minimal expirations otherwise and about 625,000 square feet of signed leases yet to commence in 2023, we see a reasonable path to maintaining occupancy and hopefully growing occupancy towards the end of the year.

例如，我們正在進行租賃談判，以續約約 120,000 平方英尺的最大 2023 年到期客戶。他們不是傳統的辦公室用戶，他們的就地租金已經上漲了十年。因此，我們預計他們的淨租金會在續約時小幅下降。考慮到規模，儘管對 Cousins 來說是一次極好的潛在續約，但它可能會對未來幾個季度之一的租賃指標產生巨大影響。預計我們最大的 2023 年到期續約、最少的到期以及約 625,000 平方英尺的已簽署租約將於 2023 年開始，我們看到了保持入住率並有望在年底前增加入住率的合理途徑。

Moving to some market dynamics. The Atlanta Metro recorded 485,000 square feet of net absorption last quarter, bringing the 2022 total to over 1.1 million square feet, the most in 7 years according to JLL. Class A rents in the market were up 5% year-over-year, continuing to be driven by highly amenitized, newer and recently redeveloped buildings. JLL also noted that Midtown posted annual rent growth greater than 10% for the year. We signed 92,000 square feet of leases across all of our submarkets in Atlanta this past quarter, rolling up cash net rents over 10% on average.

轉向一些市場動態。根據仲量聯行的數據，亞特蘭大地鐵上個季度錄得 485,000 平方英尺的淨吸納量，到 2022 年總吸納量將超過 110 萬平方英尺，為 7 年來最多。市場上的 A 類租金同比上漲 5%，繼續受到高度便利、更新和最近重新開發的建築的推動。仲量聯行還指出，中城今年的租金年增長率超過 10%。上個季度，我們在亞特蘭大的所有子市場簽署了 92,000 平方英尺的租約，現金淨租金平均上漲超過 10%。

In Austin, JLL pegged market leasing activity last quarter just below the pre-pandemic average at 1.1 million square feet, with positive net absorption for the fourth quarter and the full year. We signed 153,000 square feet of leases in Austin last quarter, rolling up cash net rents over 40% on average. Our activity included a 43,000 square foot renewal and expansion of Adobe, a technology customer of the domain. JLL Research also cited that 80% of Austin's leasing activity this quarter occurred in leases for less than 10,000 square feet, an indication that we see momentum could slow in Austin as larger requirements pause.

在奧斯汀，仲量聯行將上個季度的市場租賃活動掛鉤，略低於大流行前的平均水平 110 萬平方英尺，第四季度和全年的淨吸納量為正。上個季度，我們在奧斯汀簽署了 153,000 平方英尺的租約，現金淨租金平均上漲超過 40%。我們的活動包括對該領域的技術客戶 Adobe 進行 43,000 平方英尺的更新和擴建。 JLL Research 還指出，本季度奧斯汀 80% 的租賃活動發生在面積不到 10,000 平方英尺的租賃中，這表明我們認為隨著更大的需求暫停，奧斯汀的勢頭可能會放緩。

Fortunately, our portfolio is 95% leased as in-place weighted average lease term of over 6 years and only 8.2% of our annual contractual rents in Austin expire through 2024, equally balanced between '23 and '24, including only 1 exploration larger than 50,000 square feet that is in the third quarter of 2024. In the short term, our portfolio is well insulated from softening fundamentals. Long term, Austin remains one of the most desirable cities in the nation to live and work with strong demographic and job growth drivers. As the economy and the technology sector rebalances, we expect Austin to be poised for strong growth.

幸運的是，我們的投資組合有 95% 的租賃期為超過 6 年的就地加權平均租期，我們在奧斯汀的年度合同租金中只有 8.2% 到 2024 年到期，在 23 年和 24 年之間持平，其中只有 1 個勘探大於2024 年第三季度的 50,000 平方英尺。在短期內，我們的投資組合完全不受基本面疲軟的影響。從長遠來看，奧斯汀仍然是全國最適合生活和工作的城市之一，擁有強大的人口和就業增長動力。隨著經濟和科技行業的再平衡，我們預計奧斯汀將實現強勁增長。

In conclusion, our team had a strong finish to the year despite increasingly challenging macroeconomic headwinds. Looking ahead, we are optimistic that great companies will continue to seek high-quality, highly amenitized office space as they increasingly bring employees back into the office. Cousins is well positioned for the long term with a stable high-quality portfolio in the best Sun Belt markets.

總而言之，儘管宏觀經濟逆風越來越具有挑戰性，但我們的團隊在今年取得了不錯的成績。展望未來，我們樂觀地認為，隨著越來越多的員工重返辦公室，大公司將繼續尋求高質量、高度舒適的辦公空間。 Cousins 在最好的 Sun Belt 市場擁有穩定的高質量產品組合，在長期內處於有利地位。

Before handing it off to Gregg, I want to thank our talented team at Cousins, whose hard work made 2022 a successful year. We look forward to a productive 2023 together. Gregg?

在將其交給 Gregg 之前，我要感謝我們才華橫溢的 Cousins 團隊，他們的辛勤工作使 2022 年成為成功的一年。我們共同期待一個富有成效的 2023 年。格雷格？

Thanks, Richard. Good morning, everyone. I'll begin my remarks by providing a brief overview of our results as well as some detail on our same-property performance in parking revenues. Then I'll move on to our capital markets activity and our development pipeline, followed by a quick discussion of our balance sheet before closing my remarks with information on our initial outlook for 2023. Overall, as Colin stated upfront, fourth quarter numbers were really solid. Leasing velocity remained brisk, second-generation leasing spreads were up, and same property, the year-over-year cash NOI was positive. It was also a very clean quarter.

謝謝，理查德。大家，早安。我將通過簡要概述我們的結果以及我們在停車收入方面的同一物業表現的一些細節來開始我的評論。然後我將繼續討論我們的資本市場活動和我們的開發管道，然後快速討論我們的資產負債表，然後用我們對 2023 年的初步展望的信息結束我的評論。總的來說，正如科林前面所說的那樣，第四季度的數字確實堅硬的。租賃速度保持活躍，二代租賃利差上升，同樣的物業，同比現金 NOI 為正。這也是一個非常乾淨的地方。

There were no unusual fees, gains or other items that materially impacted our results. That being said, interest expense was up significantly during the fourth quarter, driven by higher interest rates. Daily SOFR averaged 3.6% during the fourth quarter compared to 2.1% during the third quarter and only 5 basis points in the fourth quarter of 2021. Focusing on same-property performance for a moment. Cash NOI during the fourth quarter increased 2.5% compared to last year. This continues a string of improvements during 2022, with the gains largely driven by our properties at the Domain in Austin.

沒有對我們的結果產生重大影響的異常費用、收益或其他項目。話雖如此，在利率上升的推動下，第四季度的利息支出大幅上升。第四季度的每日 SOFR 平均為 3.6%，而第三季度為 2.1%，2021 年第四季度僅為 5 個基點。暫時關注同一財產的表現。與去年同期相比，第四季度的現金 NOI 增長了 2.5%。這將在 2022 年繼續進行一系列改進，收益主要由我們在奧斯汀 Domain 的物業推動。

Looking forward, we anticipate same-property NOI growth to be positive during 2023 on both a GAAP and a cash basis as our strong leasing over the past several quarters bears fruit. As Colin mentioned earlier, physical utilization has continued to increase, and our parking revenues have grown along with it. Parking revenues during the fourth quarter were the highest they have been since the first quarter of 2020. And for all of 2022, parking revenues were up 10% year-over-year.

展望未來，我們預計 2023 年同一物業的 NOI 增長在 GAAP 和現金基礎上都是正的，因為我們在過去幾個季度的強勁租賃取得了成果。正如 Colin 之前提到的，物理利用率不斷提高，我們的停車收入也隨之增長。第四季度的停車收入是自 2020 年第一季度以來的最高水平。2022 年全年，停車收入同比增長 10%。

Turning to our capital markets activity. During the fourth quarter, we closed on a new $400 million term loan with our existing bank syndicate that matures in 2025 and includes 4 6-month extensions. We used a portion of these proceeds to pay off our maturing Promenade Tower and Legacy Union mortgages.

轉向我們的資本市場活動。在第四季度，我們與現有銀行財團達成了一項新的 4 億美元定期貸款，該貸款將於 2025 年到期，包括 4 次 6 個月的延期。我們使用這些收益的一部分來償還我們到期的 Promenade Tower 和 Legacy Union 抵押貸款。

During the quarter, we also refinanced the existing mortgages on our 2 terminus properties in Atlanta with the current lender, extending it from January of 2023 to January 2031. Looking forward, we only have about 1% of our total debt maturing in 2023. Specifically, we have a mortgage tied to a medical office building adjacent to a hospital that is essentially 100% leased. We own 50% of this Midtown Atlanta property through a joint venture with Emory University. We've initiated the refinancing process and anticipate a late spring closing.

在本季度，我們還與當前貸方就我們在亞特蘭大的 2 個終點站物業的現有抵押貸款進行了再融資，將其從 2023 年 1 月延長至 2031 年 1 月。展望未來，我們只有約 1% 的總債務將於 2023 年到期。具體而言, 我們有一個醫療辦公大樓的抵押貸款，該大樓與醫院相鄰，基本上是 100% 出租的。通過與埃默里大學的合資企業，我們擁有亞特蘭大市中心物業 50% 的股份。我們已經啟動了再融資流程，預計將在春季晚些時候關閉。

Turning to our development efforts. As Richard mentioned earlier, 1 asset, 100 Mill in Phoenix was moved off our development schedule during the fourth quarter. Our current development pipeline is comprised of a 50% interest in Neuhoff in Nashville and 100% of Domain 9 in Austin. Our share of the remaining development costs is $172 million, $97 million of which will be funded by an in-place Neuhoff Construction loan leaving just $75 million to be funded by our operating cash flow over the next 2 years as these projects are completed.

轉向我們的發展努力。正如理查德之前提到的，鳳凰城的一項資產 100 Mill 在第四季度從我們的開發計劃中移出。我們目前的開發管道包括納什維爾 Neuhoff 50% 的權益和奧斯汀 Domain 9 的 100% 權益。我們在剩餘開發成本中的份額為 1.72 億美元，其中 9,700 萬美元將由 Neuhoff Construction 貸款提供資金，在這些項目完成後，未來 2 年僅剩下 7,500 萬美元將由我們的運營現金流提供資金。

Looking at our balance sheet, net debt-to-EBITDA was 4.9x among the best of our office peers. Our liquidity position remains strong with only $56 million drawn on our $1 billion credit facility and our dividend remains well covered with an FAD payout ratio of only 70% in 2022. Our financial position is rock solid as we navigate these challenging economic times.

查看我們的資產負債表，淨債務與 EBITDA 之比為 4.9 倍，在同業中名列前茅。我們的流動性狀況依然強勁，我們的 10 億美元信貸額度僅提取了 5600 萬美元，我們的股息仍然得到很好的支付，到 2022 年 FAD 派息率僅為 70%。在我們度過這些充滿挑戰的經濟時代時，我們的財務狀況堅如磐石。

I'll close by providing our initial 2023 earnings guidance. We currently anticipate full year '23 FFO between $2.52 a share and $2.64 per share with a midpoint of $2.58. No property acquisitions, property dispositions or development starts are included in this guidance. If any transactions do take place, we will update our earnings guidance accordingly. While there are no risks within our guidance around speculative property transactions, interest rates remain a risk for all rates. Whether through variable rate debt exposure or pending debt refinancings. As we have for many years, we used the SOFR and treasury forward curves to forecast interest rates. To the extent these curves change, which they've been doing quite a bit lately, so of our interest expense.

最後，我將提供我們最初的 2023 年收益指導。我們目前預計 23 年全年 FFO 在每股 2.52 美元至 2.64 美元之間，中點為 2.58 美元。本指南不包括財產收購、財產處置或開發啟動。如果確實發生任何交易，我們將相應地更新我們的收益指引。雖然我們關於投機性房地產交易的指南不存在風險，但利率仍然是所有利率的風險。無論是通過可變利率債務風險還是未決債務再融資。多年來，我們一直使用 SOFR 和國債遠期曲線來預測利率。從這些曲線變化的程度來看，他們最近一直在做很多事情，所以我們的利息支出也是如此。

With that, I'll turn the call back over to the operator.

有了這個，我會把電話轉回給接線員。

(Operator Instructions)

（操作員說明）

Our first question will come from Anthony Powell with Barclays.

我們的第一個問題將來自巴克萊銀行的安東尼鮑威爾。

Question on Neuhoff in Nashville. And as you -- your completion at the end of the year, early next year, how are leasing kind of conversations going there? Any change in how you're approaching leasing, given the kind of the changing office environment. [Any update there would be so helpful].

關於納什維爾 Neuhoff 的問題。當你——你在今年年底、明年年初完成時，租賃類對話的進展情況如何？考慮到不斷變化的辦公環境，您處理租賃方式的任何變化。 [那裡的任何更新都會很有幫助]。

Anthony. It's Colin. The Neuhoff project, we remain incredibly excited about. The office component that project is predominantly an adaptive reuse project. And as that now is coming into shape in the form we're starting to see increased activity in folks that can now kind of touch and feel and experience Neuhoff. So we do have some conversations going with several prospective customers that are encouraging. Our hope is to sign some leases this year. I do think if we sign those leases, just given the time to build out space and occupancy would be towards the back half of the year and likely not have a meaningful impact on our 2023 numbers. But certainly, we think can have a solid impact in our 2024 numbers.

安東尼。是科林。 Neuhoff 項目，我們仍然非常興奮。該項目的辦公室組件主要是一個適應性再利用項目。隨著現在的形式逐漸成形，我們開始看到人們的活動增加，現在可以觸摸、感受和體驗 Neuhoff。因此，我們確實與幾個令人鼓舞的潛在客戶進行了一些對話。我們希望今年能簽署一些租約。我確實認為，如果我們簽署這些租約，僅考慮到擴建空間和入住時間的時間將在今年下半年開始，並且可能不會對我們 2023 年的數字產生重大影響。但可以肯定的是，我們認為會對我們 2024 年的數字產生重大影響。

Maybe just what are you seeing on the transaction environment as things get more difficult in the office space? Are you seeing more deals from the market? I know nothing guidance, but maybe an update on volumes, cap rates [would be extremely helpful].

也許隨著辦公空間變得更加困難，您在交易環境中看到了什麼？您是否看到市場上有更多交易？我對指導一無所知，但可能會更新交易量、上限率 [會非常有幫助]。

Yes. The transaction market, I'd say, is still somewhat on hold in terms of actively marketed deals, but we are starting to see a pickup in -- and I characterize as off-market discussions as owners that don't have a strong capital structure ultimately need to fund either leasing costs or deal with an upcoming loan maturity or starting to reach out. And so you're seeing conversations happen. I'd say there's still a bit of a bid app spread between buyers and sellers. But as those capital needs become more in focus, I think you'll start to see a pickup in transaction activity and start to find some price discovery as to where cap rates are.

是的。我想說，交易市場在積極營銷交易方面仍處於停滯狀態，但我們開始看到 - 我將場外討論描述為沒有強大資本的所有者結構最終需要為租賃成本或應對即將到期的貸款或開始伸出援手提供資金。所以你看到對話發生了。我想說買家和賣家之間仍然存在一些競價應用程序差價。但隨著這些資本需求變得更加受關注，我認為你會開始看到交易活動的回升，並開始發現一些關於上限率的價格發現。

Our next question will come from John Kim with BMO Capital Markets.

我們的下一個問題將來自 BMO Capital Markets 的 John Kim。

Richard mentioned in his prepared remarks, the slow leasing environment and I guess, basically saying that you're hopeful that you grew occupancy this year. Can you just clarify, is that on a lease percentage basis or occupancy? Because there's a 400 basis point spread currently, you would think occupancy should be trending up this year because of that.

理查德在他準備好的發言中提到，租賃環境緩慢，我想，基本上是說你希望今年的入住率增加。你能澄清一下，是按租賃百分比還是按入住率計算的？因為目前有 400 個基點的價差，您會認為今年的入住率應該因此而呈上升趨勢。

John, it's Richard. That's on occupancy.

約翰，是理查德。那就是入住率。

Okay. So you have a 400 basis point spread in lease occupancy, when do those leases begin on that delta?

好的。所以你的租賃入住率有 400 個基點的差價，這些租賃什麼時候開始在這個三角洲上？

Well, if you -- I mentioned that we have about 625,000 square feet for just 2023 signed leases that have not yet commenced, I think the weighted average kind of commencement they all know is in the 2Q time frame.

好吧，如果你 - 我提到我們有大約 625,000 平方英尺用於尚未開始的 2023 年簽署的租約，我認為他們都知道的加權平均開工是在第二季度的時間框架內。

Okay. So the remaining 400,000 or so, you're just hopeful to hold it? I'm just taking the difference between expiring and what hasn't commenced yet.

好的。那麼剩下的40萬左右，你就指望拿著了？我只是在區分即將到期和尚未開始的內容。

Yes, that's right. I mean how we're looking at the building blocks is again, given we have expirations that are really historically low and the timing of those, which are more toward the back of the year, put that next to the commencements that we just talked about that we feel like we're going to be able to, through the year, maintain and then hopefully, demand willing, we think build occupancy towards the end of the year.

恩，那就對了。我的意思是，鑑於我們的到期時間確實處於歷史低位，而且到期時間更接近年底，因此我們再次看待構建模塊我們覺得我們將能夠在這一年中保持，然後希望，需求願意，我們認為在年底前建立入住率。

And John, some of the delta between our percentage leased and percentage occupied, some of those leases are ones that won't commence until 2024. So some component of that, again, will be a tailwind for us as we move into 2024. We'll just get some component of that left in 2023.

約翰，我們的租賃百分比和占用百分比之間存在一些差異，其中一些租約要到 2024 年才會開始。因此，當我們進入 2024 年時，其中的某些部分將再次成為我們的順風。我們只會得到 2023 年剩下的一部分。

And Colin, you mentioned obsolescence in your markets. Is there any way you can quantify the percentage of overall stock that's obsolete in your different markets? And what do you think is going to happen to some of these assets?

科林，你提到你的市場過時了。有沒有什麼方法可以量化在不同市場中過時的總庫存百分比？您認為其中一些資產會發生什麼情況？

That's a million-dollar question there, John. It is -- it varies by -- from market to market. I'd say, certainly, as you look at our Sun Belt markets, I'd say the average vintage of our properties is newer than what you would see in some of the gateway markets. So I think there's overall less obsolescence in our markets. But I'd still -- again, look at anything that was kind of built before the 1990s as you get into that 80s and 70s vintage product. And I think in some markets, it's anywhere from 10% to 20% of the inventory. What happens to, I think, it's going to need to reprice. As I mentioned, there's very little capital or leasing demand for that type of product.

這是一個價值百萬美元的問題，約翰。它是 - 它因 - 因市場而異。我想說，當然，當你看我們的 Sun Belt 市場時，我會說我們的房產的平均年份比你在一些門戶市場看到的要新。所以我認為我們的市場總體上沒有那麼過時。但我仍然——再一次，在你進入 80 年代和 70 年代的老式產品時，看看 1990 年代之前建造的任何東西。我認為在某些市場，它佔庫存的 10% 到 20%。我認為，會發生什麼，它需要重新定價。正如我所提到的，這種類型的產品幾乎沒有資本或租賃需求。

And so eventually, it will have to reprice to a value that will allow you to either invest capital to convert it to anything from a residential property to a data center to -- in some instances, if it's just not the [bones] just aren't there, that will have to reprice to a tear down with some sort of new product built on that. That process will take time. But I think importantly, in the interim, those properties are becoming less and less relevant to the overall office market. And I think effectively, will be removed from the inventory. And I think that will help the overall rebalancing of supply and demand for premium properties.

因此，最終，它將不得不重新定價到一個允許您投資資本將其轉換為從住宅物業到數據中心的任何東西的價值 - 在某些情況下，如果它不是 [骨頭] 只是在那裡，將不得不重新定價以拆除某種基於它的新產品。這個過程需要時間。但我認為重要的是，在此期間，這些物業與整個寫字樓市場的相關性越來越小。而且我認為有效，將從庫存中刪除。我認為這將有助於優質物業供需的整體再平衡。

My final question is for Gregg, just a following up on Neuhoff. Can you just remind us on your accounting treatment when you start expensing interest on that rather than capitalizing.

我的最後一個問題是 Gregg，只是對 Neuhoff 的跟進。當您開始為此支付利息而不是資本化時，您能否提醒我們您的會計處理方式。

Yes. We'll capitalize interest on any development project, including Neuhoff on the unoccupied space until the property has either been delivered for a year or becomes 90% occupied.

是的。我們將利用任何開發項目的利息，包括未佔用空間的 Neuhoff，直到該物業交付一年或占用 90%。

Our next question will come from Camille Bonnel with Bank of America.

我們的下一個問題將來自美國銀行的 Camille Bonnel。

You mentioned that cash leasing spreads were significantly higher, excluding the Houston leases, was there any particular market driving the elevated levels? And do you expect to continue signing leasing spreads at these levels?

你提到現金租賃利差明顯更高，不包括休斯頓租賃，是否有任何特定的市場推動了這一水平的提高？您是否希望繼續在這些水平上簽署租賃利差？

Camille, this is Richard. Yes, Austin has been and did in this quarter to drive the roll-ups. But Austin was over 10% -- or excuse me, Atlanta was over 10% as well. So -- but Austin really is a driver there. Again, as I mentioned in my remarks, we see some softening happening in Austin potentially in the near term. So that could moderate. But really, at the end of the day, so we've always said there's volatility in how we report those metrics based on lease mix and geography. So it's tough to predict any quarter-to-quarter.

卡米爾，這是理查德。是的，奧斯汀在本季度一直在推動匯總。但奧斯汀超過了 10%——或者對不起，亞特蘭大也超過了 10%。所以 - 但奧斯汀確實是那裡的司機。同樣，正如我在發言中提到的，我們看到奧斯汀可能在短期內出現一些軟化。這樣可以緩和。但實際上，歸根結底，我們總是說我們根據租賃組合和地理位置報告這些指標的方式存在波動。因此很難預測任何一個季度。

Okay. That's helpful. And Gregg, I'd like to get your latest thoughts on how you're thinking about your floating rate debt strategy. I know you've spoken to in the past about being 20% as your target level, but with signs of the strengthening consumer and a robust job market. I think there's risk that the Fed continues to keep rates high, if not increase them. So do you still plan to keep this level as a target? Or what's your latest thoughts here?

好的。這很有幫助。格雷格，我想听聽你對浮動利率債務策略的最新看法。我知道你過去曾說過將 20% 作為你的目標水平，但有跡象表明消費者正在增強，就業市場也很強勁。我認為美聯儲即使不加息也有繼續維持高利率的風險。那麼你還打算把這個水平作為目標嗎？或者你最近的想法是什麼？

Sure. So you're right. Our long-term target for floating rate debt as a percentage of total debt is right around 20%. And that's where it is today, 21% as of year-end. We arrived at that level -- let me take a step back. That's consistent with -- by the way, with the median curve, the office space as well -- some are at 0, but some are much higher. If you take a look at the 20-odd office companies out there, the average is right around 20%. So we're not high or low relative to our peers. That being said, we do have some benefit of having some floating rate debt on our books, not the least of which is that floating rate debt is oftentimes prepayable without a penalty.

當然。所以你是對的。我們的浮動利率債務佔總債務百分比的長期目標是 20% 左右。這就是今天的情況，截至年底為 21%。我們達到了那個水平——讓我退後一步。這與 - 順便說一句，辦公空間的中值曲線一致 - 有些為 0，但有些更高。如果你看看那裡的 20 多家寫字樓公司，平均就在 20% 左右。因此，我們與同行相比並不高或低。話雖這麼說，我們的賬面上有一些浮動利率債務確實有一些好處，其中最重要的是浮動利率債務通常可以提前償還而不會受到懲罰。

And when we're looking at our kind of sources and uses, we want to be able to be opportunistic. And so having the option of repaying some debt without penalty, we think, is a pretty powerful tool to have. And so that's what we have that, among other reasons, is why we have some floating rate debt on our books. So I don't think you're going to see it move materially from 20%. It hasn't in the past in the 12 years I've been here, it's always been right around 20%. I think it will remain there. It really is only comprised of 3 pieces of debt, it's our credit facility. It's the term loan that we just issued, and it's the Neuhoff construction, that's it, but it solves for 20%. And it's something that we keep an eye on as well, and I don't see changing going forward materially.

當我們審視我們的來源和用途時，我們希望能夠投機取巧。因此，我們認為，可以選擇無償償還一些債務是一個非常強大的工具。這就是我們所擁有的，除其他原因外，這就是為什麼我們的賬面上有一些浮動利率債務。所以我認為你不會看到它從 20% 大幅增加。在我來這裡的 12 年裡，過去從來沒有出現過這種情況，它一直都在 20% 左右。我認為它會留在那裡。它實際上只包含 3 筆債務，這是我們的信貸額度。這是我們剛剛發放的期限貸款，它是 Neuhoff 構造，僅此而已，但它解決了 20%。這也是我們密切關注的事情，我認為未來不會發生實質性變化。

Our next question will come from Michael Lewis with Truist.

我們的下一個問題將來自 Michael Lewis with Truist。

So Richard gave great detail on how concessions looked high during the quarter because of the Apache lease in Houston, but the cost for the rest of the portfolio were actually very reasonable. It looks like maintenance CapEx was a little elevated, too. I don't know if that was also related to Houston.

因此，理查德詳細說明了由於休斯頓的 Apache 租約，該季度的特許權如何看起來很高，但其餘投資組合的成本實際上非常合理。看起來維護資本支出也有所提高。我不知道這是否也與休斯頓有關。

But my question is more broadly where net effective rents are and where they might be going in your markets and for your buildings. You consistently have very strong rent spreads. But do you think it's possible for office net effective rents to grow over the next, pick your time period, given what we all see for physical occupancy and tech layoffs and all these apparent challenges for the industry.

但我的問題更廣泛地說，淨有效租金在哪裡，以及它們可能會在你的市場和你的建築中走向何方。你一直有非常高的租金差。但是，考慮到我們所看到的實體入住率和技術裁員以及該行業面臨的所有這些明顯挑戰，您認為未來寫字樓淨有效租金有可能增長嗎？請選擇您的時間段。

Michael, it's Colin. I'd say our experience over the last couple of years is there's been quite a bit of inflation in pressure on things like TIs and so our overall concessions during that period have escalated, but we've been able to drive kind of face rents to offset that. And so we have been able to grow net effective rents I think we're at a point in time, obviously, where the economy is softening, potentially cycling down. And so as we look forward, I think it's still too early to tell. I'd say the leases that we're working on today, we've characterized net effective rents is kind of flattish, not growing them perhaps like we were last year but not yet coming in. But typically, in economic cycles, you do see net effective rents soften.

邁克爾，是科林。我想說我們在過去幾年的經驗是，像 TIs 這樣的壓力有相當大的通貨膨脹，所以我們在那段時間的整體讓步已經升級，但我們已經能夠將面子租金推高到抵消那個。因此，我們已經能夠增加淨有效租金，我認為我們正處於一個時間點，顯然，經濟正在走軟，可能會出現循環下滑。因此，當我們展望未來時，我認為現在下結論還為時過早。我想說我們今天正在處理的租賃，我們的特點是淨有效租金有點持平，可能不像去年那樣增長，但還沒有到來。但通常，在經濟周期中，你會這樣做看到淨有效租金走軟。

But again, I think as we look at the markets that we're in, and we do believe as this process unfolds that we're kind of transitioning out of for trophy premier properties out of this broader existential question around office into an economic cycle. And so what goes down, we think our markets like Atlanta and Austin will be the first markets to recover as they did after the pandemic, after the GFC and we would expect that to continue.

但同樣，我認為當我們審視我們所處的市場時，我們確實相信隨著這個過程的展開，我們正在從圍繞辦公室這個更廣泛的生存問題過渡到經濟周期.因此，我們認為我們的市場（如亞特蘭大和奧斯汀）將像大流行病後、全球金融危機後那樣首先復甦，我們預計這種情況會持續下去。

So medium and longer term, we remain very optimistic that the quality of properties that we own and the locations that we own, we're going to drive net effective rents up into the right over the broader period of time.

因此，從中長期來看，我們仍然非常樂觀地認為，我們擁有的房產質量和我們擁有的地點，我們將在更廣泛的時期內將淨有效租金推高。

Great. And then Colin, you talked about cap rates and this bid-ask spread. So I guess it poses 2 questions, right, on the buy and on the sell. So first, on the sell, now that Houston is leased do you market that asset? Or do you wait for capital markets to kind of sort out? And then on the other side of it, you weren't acquisitive in 2022, but do you think this situation maybe offers an opportunity to buy something or I don't know, maybe your focus is still more on development.

偉大的。然後 Colin，你談到了資本化率和這種買賣價差。所以我想它提出了 2 個問題，正確的，關於買入和賣出。因此，首先，在出售時，既然休斯頓已出租，您會推銷該資產嗎？還是等待資本市場恢復正常？然後另一方面，你在 2022 年並沒有收購，但你認為這種情況是否可能提供購買東西的機會或者我不知道，也許你的重點仍然更多地放在發展上。

Yes. Well, the great thing about the strength of our balance sheet is -- we've got a lot of optionality, and we don't need to sell anything because the balance sheet is so strong. So if an opportunity presents itself to sell something for more than we think it's worth, we'll certainly look at it. But I would say more broadly speaking, we're looking at dispositions as a potential source of capital if we elect to pursue new investments to keep the balance sheet relatively leverage neutral. But at the same time, I do think we're going to see opportunities this year. We were very patient last year thinking that prices would look better in 2023.

是的。好吧，我們資產負債表的優勢在於——我們有很多選擇，我們不需要出售任何東西，因為資產負債表非常強大。因此，如果有機會以高於我們認為值得的價格出售某物，我們一定會考慮的。但我想更廣泛地說，如果我們選擇進行新投資以保持資產負債表的槓桿率相對中性，我們會將處置視為潛在的資本來源。但與此同時，我確實認為我們今年會看到機會。去年我們非常耐心地認為 2023 年價格會更好。

And I think that's going to hopefully prove correct. And I think the closer -- I think, some owners get to having to either fund leasing costs to preserve their asset value or deal with loan maturities. I think you're going to see that for some transactions that might be in the latter half of the year. But when those arise, we'll be poised and ready to hopefully capitalize on some compelling opportunities.

我認為這有望證明是正確的。而且我認為越接近 - 我認為，一些所有者要么不得不為租賃成本提供資金以保持其資產價值，要么處理貸款到期日。我認為你會在今年下半年的一些交易中看到這一點。但當這些出現時，我們將做好準備並希望利用一些引人注目的機會。

Our next question will come from Dave Rogers with Baird.

我們的下一個問題將來自 Baird 的 Dave Rogers。

It's Nick on for Dave. Maybe starting off with Colin in the same vein on investment sales and/or this portfolio positioning through your recycling efforts over the past couple of years, you kind of downsized exposure and say, like our Charlotte older vintage assets. That's also kind of increased your exposure to some of the more tech-heavy metros, such as like Atlanta and Austin. I guess just kind of how are you viewing the portfolio on a geographic positioning today? And like what markets are you looking to gain more exposure over time.

尼克接替戴夫。也許從 Colin 開始，通過過去幾年的回收工作，以同樣的方式進行投資銷售和/或這種投資組合定位，你有點縮小了風險敞口，比如我們的夏洛特老式資產。這也增加了您在一些技術含量更高的大都市的曝光率，例如亞特蘭大和奧斯汀。我想您今天如何看待地理定位的投資組合？以及您希望隨著時間的推移獲得更多曝光的市場。

Yes. Good question. And I'd say the recycling over the last couple of years was less focused on kind of the geographic percentages and more focused on what we think is the most important trend, which is the flight to quality. And so we sold over $1 billion of older vintage higher CapEx type properties that I described have got growing obsolescence and reinvested that capital into terrific trophy properties like 725 Ponce and the RailYard in Charlotte.

是的。好問題。我想說的是，過去幾年的回收不太關注地理百分比，而是更關注我們認為最重要的趨勢，即追求質量。因此，我們出售了超過 10 億美元的老式高資本支出類型的房產，我所描述的這些房產已經過時，並將這些資金重新投資到很棒的獎杯房產，如 725 Ponce 和夏洛特的 RailYard。

But as we look up after completing that recycling, you're right, we're, I'd say, a little under representative in some markets that we like a lot, like Charlotte, like Dallas, and so we'll certainly be looking hard to find attractive opportunities to grow our exposure in those markets. But we continue to like Atlanta and Austin and others and despite a slowdown in tech activity, again, our portfolio is incredibly well positioned and derisked in those markets. And if the right opportunities arise, we'll certainly capitalize and continue to grow in any of our markets.

但當我們在完成回收後抬頭看時，你是對的，我想說，在我們非常喜歡的一些市場，比如夏洛特，比如達拉斯，我們的代表性有點低，所以我們肯定會努力尋找有吸引力的機會來增加我們在這些市場的曝光率。但我們繼續看好亞特蘭大和奧斯汀等地，儘管科技活動放緩，但我們的投資組合在這些市場中的定位和風險都令人難以置信。如果出現合適的機會，我們肯定會利用並繼續在我們的任何市場中發展。

Very helpful. And then maybe just a comment on your question on sublease space. I know like areas such as the Domain, you have long-term walls in those areas. But just curious on any of your particular properties that might have some sublease space that's listed.

很有幫助。然後也許只是對您關於轉租空間的問題發表評論。我知道像 Domain 這樣的區域，你在這些區域有長期的隔離牆。但只是對您的任何可能有一些已列出的轉租空間的特定屬性感到好奇。

Yes, the -- we've got some subleasing -- there are some customers who've got some subleases in our portfolio -- across the portfolio, but not a significant number today. And really, as you look at it, the Domain, that's what I think people oftentimes focus on. We've got some very large tech customers in D10, D11, D12 and D9 will deliver next year.

是的——我們有一些轉租——有些客戶在我們的投資組合中有一些轉租——在整個投資組合中，但今天數量不多。真的，正如你所看到的，領域，這就是我認為人們經常關注的。我們在 D10、D11、D12 和 D9 中有一些非常大的技術客戶將於明年交付。

Expedia has got a little bit of space in the D11 property out there. Our perspective on that is with long-term leases with no kind of termination options on any of those in the near term, actually wouldn't be a bad thing from a diversification standpoint as some of those customers actually did multi-tenant those buildings for us. And so we'll continue to monitor if situations arise that are positive for us. We'll work with them. But as we stand today, there's not a material amount of sublease.

Expedia 在 D11 物業中有一些空間。我們對此的看法是，長期租賃在短期內沒有任何終止選擇權，從多元化的角度來看實際上並不是一件壞事，因為其中一些客戶實際上為這些建築物進行了多租戶我們。因此，我們將繼續監測是否出現對我們有利的情況。我們將與他們合作。但就我們今天的情況而言，並沒有大量的轉租。

Our next question will come from [Jay Poskitt] with Evercore ISI.

我們的下一個問題將來自 Evercore ISI 的 [Jay Poskitt]。

I know that you guys have a pretty good size of land bank of $160 million. I'm just kind of curious what your thoughts are on certain projects of any of these sites. I know that guidance hasn't called for any development starts, but I'm just kind of curious what your thoughts are on utilizing some of these land. And if you're not planning on starting in the next couple of years, what do you need to see in order to kind of change your mindset with those?

我知道你們擁有 1.6 億美元的相當大的土地儲備。我只是有點好奇您對這些網站的某些項目有何看法。我知道指南沒有要求任何開發啟動，但我只是很好奇您對利用其中一些土地有何想法。如果你不打算在接下來的幾年裡開始，你需要看到什麼才能改變你的心態？

Yes. I mean we own a terrific land bank, and we've always tried to size that land bank at between 2% and 3% of the overall balance sheet to really give us the raw materials, if you will, to start new development projects, and we've found in the past that if a customer comes to the market and you don't have a piece of land, it's hard to ultimately win the business. So we're about -- today about 2.5% or so. So we actually have a little bit of room, and we might see some land opportunities in this environment.

是的。我的意思是我們擁有一個很棒的土地儲備，我們一直試圖將土地儲備的規模控制在總資產負債表的 2% 到 3% 之間，以便真正為我們提供原材料，如果你願意的話，可以開始新的開發項目，我們過去發現，如果客戶來到市場，而您沒有一塊土地，那麼最終很難贏得業務。所以我們大約 - 今天大約 2.5% 左右。所以我們實際上有一點空間，我們可能會在這種環境中看到一些土地機會。

But ultimately pulling the trigger on any of those projects, whether it's an office development or a residential development in a mixed-use setting, the return has got to be appropriate relative to the cost and the risk. My sense is in the near term, we're going to see more attractive opportunities on the acquisition side. But again, you never know, and there are some customers out there that we're talking to today that could be potential build-to-suit opportunities. And so those will certainly be worthy of consideration.

但最終啟動這些項目中的任何一個，無論是辦公樓開發還是混合用途環境中的住宅開發，相對於成本和風險而言，回報必須是適當的。我的感覺是在短期內，我們將在收購方面看到更多有吸引力的機會。但同樣，你永遠不會知道，我們今天正在與之交談的一些客戶可能是潛在的定制機會。因此，這些肯定值得考慮。

(Operator Instructions)

（操作員說明）

Our next question will come from Young Ku with Wells Fargo.

我們的下一個問題將來自富國銀行的 Young Ku。

Just I think you guys mentioned the largest lease expiration in '23, about 120,000 square feet. Could you guys provide some additional color on that, which market it is? And then whether there will be any contractions or expansion associated with that space?

我想你們提到了 23 年最大的租約到期，大約 120,000 平方英尺。你們能提供一些額外的顏色嗎，它是哪個市場？然後是否會有與該空間相關的任何收縮或擴展？

Yes. This is Richard. It's in Atlanta. It's in November of this year. Their existing square feet about 135,000. So it's going to be a modest contraction, so call it a 90% of existing space renewal.

是的。這是理查德。它在亞特蘭大。這是今年十一月。他們現有的平方英尺約135,000。所以這將是一個適度的收縮，所以稱之為 90% 的現有空間更新。

Got it. And then just regarding your guidance for '23, what kind of retention rates are you guys assuming?

知道了。然後就您對 23 年的指導，你們假設什麼樣的保留率？

This is Colin. We certainly do a customer-by-customer buildup to create our budget. But we're obviously in active discussions with a lot of different customers and on potential renewals. And so we've never publicly shared our retention rates and just don't want to do anything that could compromise some of the negotiations that we're in the midst of.

這是科林。我們當然會逐個客戶地建立我們的預算。但我們顯然正在與許多不同的客戶就潛在的續約進行積極討論。因此，我們從未公開分享我們的保留率，只是不想做任何可能損害我們正在進行的談判的事情。

It appears there are no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to Colin Connolly for any closing remarks.

看來沒有進一步的問題了。我們的問答環節到此結束。我想將會議轉回 Colin Connolly 的閉幕詞。

Thank you all for your time today and interest in Cousins Properties. If you've got any follow-up questions, please feel free to reach out to Gregg Adzema or Roni Imbeaux. Hope to see you all soon. Thank you.

感謝大家今天的寶貴時間以及對 Cousins Properties 的關注。如果您有任何後續問題，請隨時聯繫 Gregg Adzema 或 Roni Imbeaux。希望很快見到你們。謝謝。

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

本次會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。