Douglas Emmett Inc (DEI) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Douglas Emmett's quarterly earnings call. Today's call is being recorded. (Operator Instructions)

女士們，先生們，謝謝你們的支持。歡迎來到 Douglas Emmett 的季度財報電話會議。今天的通話正在錄音中。 （操作員說明）

I will now turn the conference over to Stuart McElhinney, Vice President of Investor Relations for Douglas Emmett.

我現在將會議轉交給 Douglas Emmett 投資者關係副總裁 Stuart McElhinney。

Thank you. Joining us today on the call are Jordan Kaplan, our President and CEO; and Kevin Crummy, our CIO; and Peter Seymour, our CFO. This call is being webcast live from our website and will be available for replay during the next 90 days. You can also find our earnings package at the Investor Relations section of our website. You can find reconciliations of non-GAAP financial measures discussed during today's call in the earnings package.

謝謝。今天與我們一起參加電話會議的有我們的總裁兼首席執行官 Jordan Kaplan；和我們的首席信息官 Kevin Crummy；和我們的首席財務官 Peter Seymour。此電話會議正在我們的網站上進行網絡直播，並將在接下來的 90 天內進行重播。您還可以在我們網站的投資者關係部分找到我們的收益包。您可以在今天的收益包電話會議中討論非 GAAP 財務指標的對賬。

During the course of this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of assumptions made by and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will prove to be incorrect. Therefore, our actual future results can be expected to differ from our expectations, and those differences may be material.

在本次電話會議期間，我們將做出前瞻性陳述。這些前瞻性陳述是基於我們所做的假設和我們目前可獲得的信息的信念。我們的實際結果將受到已知和未知的風險、趨勢、不確定性和我們無法控製或無法預測的因素的影響。儘管我們相信我們的假設是合理的，但它們並不能保證未來的表現，有些會被證明是不正確的。因此，我們未來的實際結果可能會與我們的預期有所不同，而且這些差異可能是重大的。

For a more detailed description of some potential risks, please refer to our SEC filings which can be found in the Investor Relations section of our website. When we reach the question-and-answer portion, in consideration of others, please limit yourself to one question and one follow-up.

有關某些潛在風險的更詳細描述，請參閱我們網站的投資者關係部分中的美國證券交易委員會備案文件。當我們進行到問答環節時，考慮到其他人，請限制自己一問一跟。

I will now turn the call over to Jordan.

我現在將電話轉給喬丹。

Good morning, everyone. Thank you for joining us. For Douglas Emmett, 2022 was a year of real accomplishments in the face of notable challenges.

大家，早安。感謝您加入我們。對於道格拉斯·埃米特 (Douglas Emmett) 而言，2022 年是面對顯著挑戰並取得真正成就的一年。

In our markets, during the first 3 quarters, the impacts of COVID dissipated, we leased 3 million square feet and office utilization rates rebounded to over 80%. During the fourth quarter, as economic concerns grew, we saw a slowdown in new and renewal demand from large tenants. Fortunately, we continue to see good activity from the small tenants who dominate our markets and lease 770,000 square feet during the quarter.

在我們的市場中，前三個季度，COVID 的影響消散，我們租賃了 300 萬平方英尺，辦公室利用率回升至 80% 以上。在第四季度，隨著對經濟的擔憂加劇，我們看到大型租戶的新需求和續租需求放緩。幸運的是，我們繼續看到主導我們市場並在本季度租賃 770,000 平方英尺的小租戶的良好活動。

Overall, our absorption was slightly negative for the year. Given the macroeconomic climate, we believe it is prudent for our guidance to assume no meaningful recovery in office occupancy during this year. During 2022, the value of both our residential and commercial leases increased. Our straight-line office rates were up 5.8%, and our residential rents increased an average of 7.8%. In addition, our 2 multifamily development projects added 505 units to our portfolio. The current state of the national economy is challenging for all of us, but remote work, oversupply, the reliance on large tenants and concerns about reduced urban appeal seem to pose additional obstacles for some office CBDs.

總體而言，我們今年的吸納量略有下降。鑑於宏觀經濟環境，我們認為我們的指引假設今年辦公室入住率沒有明顯復甦是謹慎的。 2022 年期間，我們的住宅和商業租賃價值均有所增加。我們的直線辦公室租金上漲了 5.8%，我們的住宅租金平均上漲了 7.8%。此外，我們的 2 個多戶住宅開發項目為我們的投資組合增加了 505 個單元。國民經濟的現狀對我們所有人來說都是挑戰，但遠程工作、供過於求、對大租戶的依賴以及對城市吸引力下降的擔憂似乎給一些辦公 CBD 帶來了額外的障礙。

Fortunately, our markets, supply constraints, smaller tenants, short commutes and low reliance on public transit have supported relatively high leasing volume and utilization during the pandemic. This recent experience, combined with our industry diversification and strong operating platform gives us confidence in the long-term prospects for our markets.

幸運的是，我們的市場、供應限制、較小的租戶、短途通勤和對公共交通的低依賴在大流行期間支持了相對較高的租賃量和利用率。最近的經驗，加上我們的行業多元化和強大的運營平台，使我們對市場的長期前景充滿信心。

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

有了這個，我會把電話轉給凱文。

Thanks, Jordan, and good morning, everyone. Our multifamily development projects continue to exceed pro forma. In April, we delivered Landmark, Los Angeles a new 376 unit residential high-rise in Brentwood, and have already leased over 60% of the units. In addition, we have now delivered and leased over 350 of our eventual 493 units at Bishop Place in Honolulu, and we expect to substantially complete the conversion by year-end. Asset sales in our markets have remained slow, but we continue to search for opportunities. Regarding our balance sheet, we have no outstanding debt maturing until December of 2024, and almost half of our office portfolio remains unencumbered.

謝謝，喬丹，大家早上好。我們的多戶住宅開發項目繼續超出預期。 4 月，我們在洛杉磯 Landmark 交付了位於布倫特伍德的一座新的 376 單元高層住宅，並且已經出租了超過 60% 的單元。此外，我們現在已經交付並租賃了火奴魯魯 Bishop Place 最終 493 個單元中的 350 多個，我們預計到年底將基本完成轉換。我們市場的資產銷售仍然緩慢，但我們繼續尋找機會。關於我們的資產負債表，我們沒有要到 2024 年 12 月到期的未償債務，而且我們幾乎一半的辦公室資產組合仍然沒有負擔。

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

有了這個，我會把電話轉給斯圖爾特。

Thanks, Kevin. Good morning, everyone. We did a substantial amount of leasing this quarter, primarily driven by the small tenants that support our markets. We signed 218 office leases, covering 772,000 square feet, consisting of 244,000 square feet of new leases and 528,000 square feet of renewal leases. For all of 2022, we signed 924 office leases, covering 3.7 million square feet, including 1.3 million square feet of new leases and 2.4 million square feet of renewals.

謝謝，凱文。大家，早安。本季度我們進行了大量租賃，主要是由支持我們市場的小租戶推動的。我們簽署了 218 份辦公室租約，佔地面積 772,000 平方英尺，包括 244,000 平方英尺的新租約和 528,000 平方英尺的續租租約。 2022 年全年，我們簽署了 924 份辦公室租約，面積達 370 萬平方英尺，其中包括 130 萬平方英尺的新租約和 240 萬平方英尺的續約租約。

Nonetheless, during 2022, our leased rate declined by 53 basis points to 87% and our occupied rate declined 83.7%, driven mostly by the slowdown in activity during the fourth quarter and recapturing space from nonpaying commercial tenants as local moratoriums expired. Our leasing spreads during the fourth quarter were positive 1.8% for straight line and negative 9.9% for cash. As I've been saying in recent quarters, we remained focused on occupancy at this point in the cycle and expect rent spreads to remain choppy until our lease rate climbs back near 90%.

儘管如此，在 2022 年期間，我們的租賃率下降了 53 個基點至 87%，我們的佔用率下降了 83.7%，這主要是由於第四季度活動放緩以及當地暫停令到期後從未付款的商業租戶手中奪回空間。我們在第四季度的直線租賃利差為正 1.8%，現金為負 9.9%。正如我在最近幾個季度所說的那樣，我們仍然關注週期中此時的入住率，並預計在我們的租賃率回升至接近 90% 之前，租金利差將保持波動。

Our leasing costs this quarter of $5.80 per square foot per year in line with our recent trends and well below average for other REITs in our benchmark group. Our multifamily portfolio remains essentially full at 99.4% leased. We saw continued strength in rent growth during Q4, with average rent roll-up for new tenants over 5%. We assume an extraordinary 7.8% increase in multifamily rents during 2022 will moderate somewhat in 2023. We are pleased that the residential rent moratoriums in our markets are ending, although the payback periods have been extended into 2024 for some of our residential tenants.

我們本季度的租賃成本為每年每平方英尺 5.80 美元，符合我們最近的趨勢，遠低於我們基準組中其他房地產投資信託基金的平均水平。我們的多戶型投資組合基本保持完整，出租率為 99.4%。我們看到第四季度租金增長持續強勁，新租戶的平均租金上漲超過 5%。我們假設 2022 年多戶住宅租金的超常增長 7.8% 將在 2023 年有所放緩。我們很高興我們市場的住宅租金暫停期即將結束，儘管我們的一些住宅租戶的投資回收期已延長至 2024 年。

With that, I'll turn the call over to Peter to discuss our results.

有了這個，我會把電話轉給彼得來討論我們的結果。

Thanks, Stuart. Good morning, everyone. Turning to our results. Compared to the fourth quarter of 2021, revenues increased by 6.4%, FFO increased by 7.2% to $0.51 per share. AFFO decreased 11.1% to $81.2 million, reflecting more tenant improvement expenditures as a result of our robust leasing in Q2 and Q3.

謝謝，斯圖爾特。大家，早安。轉向我們的結果。與 2021 年第四季度相比，收入增長 6.4%，FFO 增長 7.2% 至每股 0.51 美元。 AFFO 下降 11.1% 至 8120 萬美元，反映出由於我們在第二季度和第三季度的強勁租賃而導致更多的租戶改善支出。

And same-property cash NOI increased by 1.4%, primarily as a result of higher rental revenue and parking, partly offset by inflationary impacts on expenses and lower office occupancy. For all of 2022, FFO increased by 9.4% over the previous year. Our G&A remains very low relative to our benchmark group at only 4.4% of revenues.

同物業現金 NOI 增長 1.4%，主要是由於租金收入和停車位增加，部分被通貨膨脹對支出的影響和較低的辦公室入住率所抵消。 2022 年全年，FFO 比上一年增長 9.4%。相對於我們的基準組，我們的 G&A 仍然非常低，僅佔收入的 4.4%。

Turning to guidance. As Jordan said, our guidance assumes that office occupancy growth may not start in 2023. We elected to allow interest on 1 loan to float when the related interest rate swap expired on January 1. Our guidance also assumes we will do the same when 2 other swaps expire in March. Due to increasing interest rates, expiring swaps and the new residential acquisition loan, we expect interest expense in 2023 to be between $192 million and $196 million.

轉向指導。正如喬丹所說，我們的指導假設辦公室入住率可能不會在 2023 年開始增長。我們選擇在相關利率互換於 1 月 1 日到期時允許 1 筆貸款的利息浮動。我們的指導還假設當其他 2 筆貸款到期時我們將這樣做掉期合約在 3 月到期。由於利率上升、掉期到期和新的住宅購置貸款，我們預計 2023 年的利息支出將在 1.92 億美元至 1.96 億美元之間。

Overall, we expect FFO to be between $1.87 and $1.93 per share, with higher NOI more than offset by approximately $0.16 per share of additional interest expense in 2023. For information on assumptions underlying our guidance, please refer to the schedule in the earnings package. As usual, our guidance does not assume the impact of future acquisitions, dispositions or financings.

總體而言，我們預計 FFO 將在每股 1.87 美元至 1.93 美元之間，較高的 NOI 將被 2023 年每股約 0.16 美元的額外利息支出所抵消。有關我們指導所依據的假設的信息，請參閱收益包中的附表。與往常一樣，我們的指南不假設未來收購、處置或融資的影響。

I will now turn the call over to the operator so we can take your questions.

我現在將把電話轉給接線員，以便我們回答您的問題。

(Operator Instructions) Our first question is from Blaine Heck with Wells Fargo.

（操作員說明）我們的第一個問題來自富國銀行的 Blaine Heck。

Just starting with guidance, can you guys provide the assumptions for retention in 2023 and rent spreads on executed leases during the year, if possible?

只是從指導開始，如果可能的話，你們能否提供 2023 年的保留假設和年內已執行租賃的租金差？

Blaine, no, we have never given guidance on those particular items. I think for retention, our retention rates have historically stayed in a pretty tight band in kind of mid 60s. So I think you could assume that this year we'll probably be like most years before it.

Blaine，不，我們從未就這些特定項目提供指導。我認為對於留存率，我們的留存率在歷史上一直保持在 60 年代中期的相當窄的區間內。所以我認為你可以假設今年我們可能會像往年一樣。

And trying to predict rent spreads, it's been impossible. We've tried that in the past we were not very good at predicting them ourselves, and it's nothing we've ever provided guidance on. As I said, we're not -- we're focused on retaining occupancy and growing occupancy. So I think you should expect spreads to be kind of how they've been, but it's hard for us to make predictions quarter-to-quarter on how they're going to play out.

並試圖預測租金差，這是不可能的。我們已經嘗試過，過去我們自己不太擅長預測它們，而且我們從來沒有提供過任何指導。正如我所說，我們不是——我們專注於保持入住率和增加入住率。所以我認為你應該期望利差會像過去那樣，但我們很難按季度預測它們將如何發揮作用。

Okay. Fair enough. Second question, Jordan, I think you've been pretty focused on getting your development team working on some new projects now that Landmark is done and Bishop is wrapping up. Is there anything you can talk about on that side of your initiatives? Have you identified the next project or projects? And does the increase in cost of capital make you any less likely to move forward with development projects at this point?

好的。很公平。第二個問題，Jordan，既然 Landmark 已經完成並且 Bishop 正在結束，我認為你一直非常專注於讓你的開發團隊從事一些新項目。在您的倡議方面，您有什麼可以談談的嗎？您確定下一個或多個項目了嗎？資本成本的增加是否會降低您此時推進開發項目的可能性？

So the next big thing I think we're going to be focused on is construction at Barrington Plaza, where some years ago, we had a fire, we've gone through a lot with the city, trying to get it worked. Both -- we have a lot we're going through and have gone through with the city on insurance and -- with insurance companies and with the city to get positioned to be able to start work there and do all the work that we need to do, including putting in fire sprinklers. And so that's probably the next big step there.

因此，我認為我們將關注的下一件大事是巴靈頓廣場的建設，幾年前，我們在那裡發生了火災，我們與這座城市經歷了很多，試圖讓它發揮作用。兩者 - 我們正在經歷很多，並且已經與城市一起經歷了保險 - 與保險公司和城市一起準備好能夠在那裡開始工作並完成我們需要的所有工作做，包括安裝消防噴淋頭。所以這可能是下一步的重要一步。

Although I will say -- this may not be the exact right time to do this, but some changes in state law have made it much easier for many of our sites, very good sites that we have up in Wilshire -- whether Wilshire, Beverly Hills and in the Valley to made it more cost effective, less time-consuming in terms of entitlements. I mean it just fixed a lot of stuff.

雖然我會說——這可能不是做這件事的確切時間，但州法律的一些變化使我們的許多網站變得容易得多，我們在威爾希爾擁有的非常好的網站——無論是威爾希爾、貝弗利山丘和山谷使其更具成本效益，在權利方面耗時更少。我的意思是它只是修復了很多東西。

But those changes to make sure we really understand their impact. We're waiting -- we were waiting -- we thought we were actually to get some guidance like this month or next in terms of how it's actually going to be executed. But then we heard we weren't going to get any guidance until June or July. So we're waiting to hear that. But there's no version of guidance isn't going to come out pretty positive for us on some of those sites.

但這些改變是為了確保我們真正了解它們的影響。我們正在等待——我們一直在等待——我們認為我們實際上會在本月或下個月獲得一些關於如何實際執行的指導。但後來我們聽說要到 6 月或 7 月才能獲得任何指導。所以我們等著聽。但是，在其中一些網站上，沒有任何版本的指南不會對我們產生非常積極的影響。

The next question is from Michael Griffin with Citi.

下一個問題來自花旗的邁克爾格里芬。

I wanted to ask on the Warner Bros Discovery leases expiring over here in '23 and '24. Just curious the demand that you're tracking on that space. I know the Lion's share expires in 2024. Is there a sense that, that's weighted toward the first or the second half of '24 for that? And any other color you can provide would be helpful.

我想問一下 23 年和 24 年在這裡到期的華納兄弟發現租約。只是好奇您在該空間上跟踪的需求。我知道 Lion 的份額將在 2024 年到期。是否有一種感覺，它會在 24 年的上半年或下半年加權？您可以提供的任何其他顏色都會有所幫助。

So that's I think there's only 2 leases and one of them is a whole building, which is the 3400 Riverside Drive. And that building is about 450,000 feet and the lease expires in the second half of '24. And as I know -- I mean, everybody thinks just to know what they're going to do. I'm anxious to know what they're going to do. I mean, I'm not -- I'll tell you I'm not optimistic considering what's going on with the economy today when you talk about the economy 2 years from now, and I don't know what they will do or will want to do. They don't have any more options.

所以我認為只有 2 個租約，其中一個是整棟建築，即 3400 Riverside Drive。那棟建築大約有 450,000 英尺，租約將於 24 年下半年到期。據我所知——我的意思是，每個人都只是想知道他們將要做什麼。我很想知道他們要做什麼。我的意思是，我不是——我會告訴你，當你談論 2 年後的經濟時，考慮到今天的經濟狀況，我並不樂觀，我不知道他們會做什麼或將要做什麼想做。他們沒有更多的選擇。

But of course, I don't think they even know what they want to do at this point. I mean the -- the real estate group that we made the original deals with, which I think did have an expectation of keeping the building, all of them are gone. I mean, so we don't even have a good way to get -- I mean, we're reading the same stuff here. We think they're cutting expenses, and I know that, but I don't know where they'll be in 2 years.

但當然，我認為他們此時甚至不知道自己想做什麼。我的意思是 - 與我們達成原始交易的房地產集團，我認為他們確實希望保留建築物，但他們都不見了。我的意思是，所以我們甚至沒有一個很好的方法來獲得——我的意思是，我們在這裡讀的是同樣的東西。我們認為他們正在削減開支，我知道這一點，但我不知道他們會在 2 年內達到什麼水平。

Got you. That's helpful. Then I wanted to turn to your thoughts just on capital allocation for '23. Obviously, with the announced dividend, reduction in share reauthorization program at the end of last quarter. I mean could we potentially see you being more acquisitive if the right opportunities came about, be there it for either office or multifamily or do you think it's more pragmatic to stick to potential share buybacks?

明白了這很有幫助。然後我想談談你對 23 年資本配置的看法。顯然，隨著宣布的股息，上季度末股票重新授權計劃的減少。我的意思是，如果合適的機會出現，我們是否可能會看到您變得更加貪婪，無論是辦公室還是多戶家庭，還是您認為堅持潛在的股票回購更為務實？

Well, just a general answer because share buybacks, multifamily as points are all being acquisitive, I guess, acquiring. And I think it's a good time to acquire. I think we're well organized to acquire. Certainly, the dividend cut gave us even more firepower to do that. We have unleveraged buildings, cash. I mean we have a whole list of things. And my goal is not to allow the opportunities in any particular recession, particularly one that's this extreme to pass it out us taking advantage of it and I want to do that.

好吧，這只是一個一般性的答案，因為股票回購、多戶家庭作為積分都在收購，我想是收購。我認為現在是收購的好時機。我認為我們組織得很好，可以收購。當然，削減股息給了我們更多的火力來做到這一點。我們有無槓桿的建築物、現金。我的意思是我們有一個完整的清單。我的目標是不讓任何特定衰退中的機會，尤其是那種極端的衰退讓我們利用它，我想這樣做。

The next question is from Alexander Goldfarb with Piper Sandler.

下一個問題來自 Alexander Goldfarb 和 Piper Sandler。

So 2 questions. First, just going back to the Barrington fire, the project, Jordan, you and I have discussed this on the last call, but just -- so I understand how it impacts FFO. Is any of that project in the guidance that you laid out for this year? Or just based on timing, it's probably not something that would really impact FFO until next year?

所以2個問題。首先，回到 Barrington 大火，這個項目，喬丹，你和我在上次電話會議上討論過這個問題，但只是 - 所以我理解它如何影響 FFO。您今年制定的指南中是否包含該項目？或者只是基於時間，它可能不會真正影響 FFO 直到明年？

No. There's some in the FFO guidance for this year. But it's hard depending on the pace at which we work things out with the city and with insurance, it's hard to know how much will impact this year, and I suspect the largest impact will be next year. Even if everyone says like open -- do it everyone, everyone do whatever you want, you have a lot of groundwork to do in terms of installing core equipment that may not impact units as much before we can go in and start impacting the buildings.

沒有。今年的 FFO 指南中有一些。但這很難取決於我們與城市和保險業解決問題的速度，很難知道今年會產生多大影響，我懷疑明年會產生最大影響。即使每個人都說喜歡開放——每個人都去做，每個人都做任何你想做的事，在我們進入並開始影響建築物之前，在安裝可能不會對單位產生太大影響的核心設備方面，你還有很多基礎工作要做。

Okay. So it's in guidance, but the bulk of the impact is really a 2024 event, that's the way to understand it?

好的。所以它在指導中，但大部分影響實際上是 2024 年的事件，這就是理解它的方式嗎？

Yes. I mean, and even that, yes, that should be true, but this all relies on like what kind of deals we make also with insurance and the pace at which we move people out. And those are like giant numbers, right? I mean we make a deal with insurance, vis-a-vis the revenue, that's one thing, that maybe you guys have never seen an impact and then, of course, the speed at which we move people out. So I don't -- if I'm guessing now yes, '24.

是的。我的意思是，即使那樣，是的，這應該是真的，但這一切都取決於我們在保險方面做出什麼樣的交易，以及我們將人們轉移出去的速度。那些就像巨大的數字，對吧？我的意思是我們在保險方面達成協議，相對於收入，這是一回事，也許你們從未見過這種影響，當然還有我們將人員轉移出去的速度。所以我不——如果我現在猜是的話，'24。

Okay. Makes sense. Second question. Appreciate your comments on the changes from the state level. Always good to hear positive things for landlords. But obviously, L.A. passed their Good Cause Eviction recently. So as you see the groundwork for your potential apartment pipeline in -- which I think is mostly L.A. and Santa Monica, net-net, between the advantage that the state gave you versus the negative from LA's recent regulation change. Overall, does it change any of your underwriting one way or the other? Does it make it a little tougher, make it a little better? Or is it sort of a wash when you figure the -- those 2 policy changes?

好的。說得通。第二個問題。感謝您對州級變化的評論。總是很高興聽到房東的好話。但顯然，洛杉磯最近通過了正當理由驅逐。因此，當你看到你潛在的公寓管道的基礎時——我認為主要是洛杉磯和聖莫尼卡，網絡，在國家給你的優勢與洛杉磯最近的監管變化帶來的負面影響之間。總體而言，它是否會以某種方式改變您的承保？它會讓它變得更難一點，讓它變得更好一點嗎？或者，當您認為這兩項政策發生變化時，這是否有點洗禮？

I mean, I don't like any limits on rent or any of the rest of it. But quite frankly, the Good Cause Eviction stuff, I don't think runs a fall of any of our habits. I mean someone is less than a month to link with. We collect the money -- I mean we don't keep -- or if you're telling me raising rent on someone that's in their unit, more than 10%. I mean anybody -- and certainly anybody institutional, it's been the apartment business for a long time, that's smart enough not to do that anyway.

我的意思是，我不喜歡任何租金限製或其他任何限制。但坦率地說，我不認為 Good Cause Eviction 會影響我們的任何習慣。我的意思是有人不到一個月就可以與之建立聯繫。我們收錢——我的意思是我們不保留——或者如果你告訴我提高他們單元中某人的租金，超過 10%。我的意思是任何人——當然還有任何機構，長期以來一直從事公寓業務，他們足夠聰明，無論如何都不會這樣做。

And I don't think I'm getting ready to pro forma more than 10% a year rent growth, and I'm trying to figure out or going to buy something. So I mean, I don't think you can. Yes. I don't like what the city passed. I'm not sure it's going to have a big impact on us or any impact, quite frankly. But I mentioned the stuff at the state level because it's like a giant impact on it. I think it's -- I went from telling you guys it's years to get anything in title to potentially, if this thing goes right, that we could just kind of go at our own pace. I mean, it's a crazy change. I'm surprised that even passed.

而且我不認為我準備好預估每年超過 10% 的租金增長，我正在努力弄清楚或打算買東西。所以我的意思是，我認為你做不到。是的。我不喜歡這座城市過去的一切。坦率地說，我不確定它會對我們產生重大影響或任何影響。但我在州一級提到了這些東西，因為它對它產生了巨大的影響。我認為這是——我從告訴你們，獲得任何冠軍頭銜都需要很多年，如果事情進展順利，我們可以按照自己的步調前進。我的意思是，這是一個瘋狂的變化。我很驚訝竟然通過了。

Maybe they don't know that they gave you guys a gift.

也許他們不知道他們給了你們禮物。

Well, if they had known that, they wouldn't have passed it because there's no loan for developers in Sacramento. But that's done.

好吧，如果他們知道這一點，他們就不會通過它，因為薩克拉門託的開發商沒有貸款。但這已經完成了。

The next question is from Steve Sakwa with Evercore ISI.

下一個問題來自 Evercore ISI 的 Steve Sakwa。

Jordan, I know that you guys were guiding to sort of average office occupancy, but within that range of 82 to 84, could you maybe just give us a little color on what you expect for new leasing volumes in '23? I know the fourth quarter was probably the lowest quarterly volume on new leasing in about 2 years. So -- just any thoughts on the pace of new leasing and the pipeline that you're seeing today?

喬丹，我知道你們正在指導某種平均辦公室入住率，但在 82 到 84 的範圍內，你能否給我們一些關於你對 23 年新租賃量的預期的顏色？我知道第四季度可能是大約 2 年來新租賃量最低的季度。那麼 - 關於您今天看到的新租賃的步伐和管道有什麼想法嗎？

Well, we've really been whipsawed by the changes in the people's sort of economic outlook. I mean, I was really surprised going into the fourth quarter that things shifted so quickly as kind of attitudes went towards -- I think you saw that in a lot of people, attitudes went towards we're going to go into a recession and how quickly the leasing shifted.

好吧，我們真的被人們的經濟前景的變化所震撼。我的意思是，我真的很驚訝進入第四季度，事情轉變得如此之快，因為人們的態度是——我想你看到很多人的態度是我們將進入衰退，以及如何租賃很快就轉移了。

And one side of absorption and leasing is obviously roll and here we give you that for every quarter what the roll looks like. The other side has been so sensitive to people's, kind of, point of view on the economy. I mean 3 incredible quarters and all of a sudden, the news turns negative, and we drop off 25%. I mean that's wild, right?

吸收和租賃的一方面顯然是滾動，在這裡我們為您提供每個季度滾動的樣子。另一方對人們對經濟的某種觀點非常敏感。我的意思是 3 個令人難以置信的季度，突然之間，消息變成了負面消息，我們下降了 25%。我的意思是那很瘋狂，對吧？

And so guessing about what next year is going to be. I mean, I'm feeling a little burn. So we didn't try and decide -- we didn't try and say people are going to regain confidence in the economy and the leases going to pick up again. And we also said to ourselves, we're probably kind of where we're going to be. The fourth quarter has kind of given us an example of where we're going to be or an idea -- but I think there will be changes next year, and so it was a very hard number to put out, quite frankly, because there's still -- you're talking about something where there still is -- I mean even that rough fourth quarter, still a lot of activity, over 700,000 feet.

所以猜測明年會怎樣。我的意思是，我感覺有點燒灼感。所以我們沒有嘗試做出決定——我們沒有嘗試說人們將重拾對經濟的信心，租約將再次回暖。我們還對自己說，我們可能會到達我們要去的地方。第四季度給了我們一個例子，說明我們將要達到的目標或想法——但我認為明年會有變化，所以坦率地說，這是一個很難公佈的數字，因為仍然 - 你在談論仍然存在的東西 - 我的意思是即使是那個粗糙的第四季度，仍然有很多活動，超過 700,000 英尺。

Right. Okay. And Stuart, I know you sort of guided broadly to interest expense. I know you have a couple of swaps that are coming up, the debts not due, but the swaps are burning off at relatively low rates, and I think they're burning off relatively soon, 1 in March and 1 in April. So do you have a sense, given where the market is today on kind of where that debt would reprice today?

正確的。好的。斯圖爾特，我知道你在某種程度上廣泛地引導了利息支出。我知道你有幾個掉期即將到來，債務未到期，但掉期正在以相對較低的利率燃燒，我認為它們很快就會燃燒掉，3 月 1 次，4 月 1 次。那麼，考慮到今天的市場情況，您是否知道今天的債務將在何處重新定價？

Well, I'm going to answer anything. The debt is not repricing, only the swaps burning off.

好吧，我會回答任何事情。債務沒有重新定價，只是掉期掉期。

Yes. So Steve, No, we're not super excited about swapping in the current environment. And we think that when you look at the forward curves, that things are going to start coming down. And so we're monitoring the market every day and when we find the right opportunity, we'll swap. We set up our debt specifically for this where we have a 2-year runway to refinance an asset. And we're entering that with these where we've got 24 months to figure out and replace the loan.

是的。所以史蒂夫，不，我們對在當前環境中進行交換並不感到非常興奮。我們認為，當您查看遠期曲線時，事情會開始下降。因此，我們每天都在監控市場，當我們找到合適的機會時，我們就會進行交易。我們專門為此設置了債務，我們有 2 年的跑道來為資產再融資。我們正在進入這些，我們有 24 個月的時間來計算和更換貸款。

So we see -- go ahead, Peter. Go ahead.

所以我們看到 - 繼續，彼得。前進。

Just to be clear though, we are assuming -- this is Peter, that those loans float and that's included in our guidance.

不過要明確一點，我們假設——這是彼得，這些貸款是浮動的，並且包含在我們的指導中。

The same loan, so it's not repricing, but it's just -- we're just doing same thing you could do, which is you just look at the forward curve on floating rate, and we just put that in our model.

同樣的貸款，所以它不是重新定價，但它只是 - 我們只是做你可以做的同樣的事情，就是你只看浮動利率的遠期曲線，我們只是把它放在我們的模型中。

Yes. Okay. I just wanted to clarify. You're just going to let them float for the time being, and so they'll just go to the sofa curve plus their spread.

是的。好的。我只是想澄清一下。你只是暫時讓它們漂浮，所以它們只會去沙發曲線加上它們的傳播。

Yes. I mean it's not -- there's a lot of insecurity right now around where rates are going. And so there's just too big of a margin to be paid in terms of swapping to cover people's kind of conservativeness. And so I think even though it's painful and expensive for a little bit to be unswapped, I think this is the right thing, at least to watch for another little bit of time.

是的。我的意思是它不是——現在圍繞利率走勢存在很多不安全因素。因此，在交換方面支付的利潤太大，無法彌補人們的保守性。所以我認為，儘管取消交換一點點是痛苦和昂貴的，但我認為這是正確的事情，至少要再觀察一點時間。

The next question is from (inaudible) with Bank of America.

下一個問題來自（聽不清）美國銀行。

Following up on your occupancy outlook from another angle. Relative to the amount of expiries you have coming due this year, the midpoint of your occupancy guidance isn't really implying a steep drop off, which I assume is partially supported by the leases that have not yet commenced. So just curious, like what are you seeing on the demand side that gives you comfort here that occupancy doesn't trend below these levels?

從另一個角度跟進您的入住前景。相對於您今年到期的到期數量，您的入住指導的中點並不真正意味著急劇下降，我認為尚未開始的租約部分支持了這一點。所以只是好奇，就像您在需求方面看到的那樣讓您感到安慰，即入住率不會低於這些水平？

So the demand side is driven by the -- it's our quarterly leasing. And I think as I -- I mean we're always guessing a little bit about demand. But I think as -- we warned you guys going into the fourth quarter, during that call, we said, hey, while we're seeing a real change in the pipeline in terms of leasing -- it's never nothing. I mean it's -- there's always a lot of activity, but -- we're not a company that tracks individual leases.

因此，需求方面是由我們的季度租賃驅動的。我認為我 - 我的意思是我們總是在猜測一些需求。但我認為——我們警告你們進入第四季度，在那次電話會議上，我們說，嘿，雖然我們看到租賃方面的管道發生了真正的變化——但它從來都不是什麼。我的意思是——總是有很多活動，但是——我們不是一家跟踪個人租約的公司。

It's everything we do around this issue -- has to do with flow more than to do with an individual deal. And so as we saw the flow slow down, and as you saw, moderated about 25%, that is noticeable to us. Now we're looking at the activity and we're going, okay, well, we seem to be at that level at the moment, and we're looking at that and that's the information we're giving you in this guidance.

這是我們圍繞這個問題所做的一切——與流量有關，而不是與單個交易有關。因此，當我們看到流量減慢時，正如您所看到的，緩和了大約 25%，這對我們來說是顯而易見的。現在我們正在研究活動，我們正在做，好吧，好吧，我們目前似乎處於那個水平，我們正在研究那個，這就是我們在本指南中給你的信息。

Okay. And more specifically, thank you for the update on Warner Bros. Are you able to provide any comment or indication on the UCLA lease that's coming due and their likelihood to renew there?

好的。更具體地說，感謝您更新華納兄弟。您能否就即將到期的加州大學洛杉磯分校租約及其在那裡續約的可能性提供任何評論或指示？

I think UCLA has like 25 or 26 leases with us. They're all different departments at the university, different functions. They don't act in a coordinated manner. So we'll literally have quarters where they sign a new lease with us and then give back some other space. So those are a bunch of smaller leases. We don't have specific guidance on any of them, but they're not -- it's not -- it doesn't act like a large tenant.

我認為加州大學洛杉磯分校與我們簽訂了 25 或 26 份租約。他們都是大學的不同部門，具有不同的職能。他們不以協調的方式行事。所以我們真的會有宿舍，他們與我們簽訂新的租約，然後再回饋一些其他空間。所以這些是一堆較小的租約。我們對它們中的任何一個都沒有具體的指導，但它們不是——它不是——它不像一個大租戶。

The next question is from Nick Yulico with Scotiabank.

下一個問題來自豐業銀行的 Nick Yulico。

First question is just in terms of various reports, everything we hear about the downtown L.A. office market being very weak and firms considering moving out of that area. I guess I'm just wondering if you're seeing any impact to your portfolio, realizing that's maybe more of a larger tenant issue, but law firms or others looking to, let's say, move back to Century City, Beverly Hills? Or any benefit you're seeing from a leasing demand standpoint from that?

第一個問題是關於各種報告，我們聽到的所有關於洛杉磯市中心寫字樓市場非常疲軟以及公司考慮搬出該地區的消息。我想我只是想知道您是否看到對您的投資組合有任何影響，意識到這可能更像是一個更大的租戶問題，但是律師事務所或其他人希望搬回比佛利山莊的世紀城？或者從租賃需求的角度來看，您從中看到了什麼好處？

Well, Nick, I mean, you know the issue incredibly well for a guy in New York. So yes, people seem to be kind of finishing moving out, it's larger tenants and they're finishing moving out or they're moving out of downtown. I think the primary beneficiary of that move to date has been Century City. There might be a little bit of activity in Beverly Hills.

好吧，尼克，我的意思是，對於一個紐約人來說，你非常了解這個問題。所以，是的，人們似乎有點要搬出去了，這是更大的租戶，他們要搬出去或者他們要搬出市中心。我認為迄今為止這一舉措的主要受益者是世紀城。比佛利山莊可能會有一些活動。

But the hope would be that we could pick some of that also up in Westwood and Century City have been the 2 markets that have like catered to those larger institutional type tenants. But Century City, I mean, has been an overwhelmingly, happy beneficiary of that move. I can't -- we don't -- I mean I don't even know that we have space in the portfolio that could accommodate some of those more high-profile moves that have been in the press recently.

但希望我們也能在 Westwood 和 Century City 中挑選一些這樣的市場，這兩個市場一直在迎合那些較大的機構類型租戶。但我的意思是，世紀城一直是這一舉措的壓倒性、幸福的受益者。我不能——我們不——我的意思是我什至不知道我們在投資組合中有空間可以容納最近媒體報導的一些更引人注目的舉措。

That's helpful. And then I guess just a second question is going back to the buyback, Jordan, maybe just talk a little bit about how the Board is thinking about deploying that? I mean, it doesn't look like there's anything assumed in the guidance or really anything that was done so far unless I'm missing something. But how you're thinking about that? Are you waiting to find a JV sale or some source of funds that would go towards that buyback? And presumably, you think the stock is cheap because you put the buyback in place. So any thoughts on that would be helpful.

這很有幫助。然後我想第二個問題是回到回購，喬丹，也許只是談談董事會如何考慮部署它？我的意思是，除非我遺漏了什麼，否則指南中似乎沒有任何假設，也沒有到目前為止所做的任何事情。但你是怎麼想的？您是否正在等待尋找合資企業出售或某種資金來源來回購？據推測，您認為股票便宜是因為您進行了回購。因此，對此的任何想法都會有所幫助。

Well, the buyback is one of a number of options. They all use some type of capital -- you have access to capital. So that's probably not really that much of an issue. But we just have to look at it a variety of things. It's then -- it's on the list. I think while it's compelling, I mean, we obviously would rather lean towards making some great real estate deals because that sticks with the company, that adds a great piece of real estate forever, which is always very valuable. But I -- it's hard to ignore the stock buy, so everything is on the list. I mean, that's where we're at.

好吧，回購是眾多選擇之一。他們都使用某種類型的資本——你可以獲得資本。所以這可能不是什麼大問題。但我們只需要從不同的方面來看待它。然後 - 它在列表中。我認為雖然它很有吸引力，但我的意思是，我們顯然更願意傾向於進行一些偉大的房地產交易，因為這與公司息息相關，這會永遠增加一大塊房地產，這總是非常有價值的。但我——很難忽視股票購買，所以一切都在清單上。我的意思是，這就是我們所處的位置。

The next question is from John Kim with BMO.

下一個問題來自 BMO 的 John Kim。

I wanted to get your updated views on resi conversion opportunities. If there are any assets or maybe some markets contemplating, offering incentives that would make it more economically viable for you to pursue the change of use of the building?

我想了解您對 resi 轉換機會的最新看法。如果有任何資產或某些市場正在考慮提供激勵措施，使您在經濟上更可行地改變建築物的用途？

Yes. It's funny because residential conversion is basically a matter of looking at the spread between office and resi rents and then you can get down to a particulars of a single building. And you would say, well, resi rents are way up and office rents are suffering. But we're not in markets where they're suffering extraordinarily. So maybe there could be something, but it's not very obvious, and it's not something where you can walk into a market the way we did when we were looking in Hawaii and just say, this is obvious, we should do this as one of the [part].

是的。這很有趣，因為住宅轉換基本上是查看辦公室和住宅租金之間的價差，然後您可以深入了解單個建築物的細節。你會說，好吧，住宅租金在上漲，而辦公室租金在下降。但我們不在他們遭受巨大痛苦的市場。所以也許會有一些東西，但它不是很明顯，而且它不是你可以像我們在夏威夷尋找時那樣走進市場並且只是說，這很明顯，我們應該作為其中之一來做[部分]。

It's going to be a little more -- it's got -- it's much more nuanced than that. But we -- it's great that we had that experience and a great job was done. She's had on the back of that. That team, both the construction, the lease up and everything of the 1132 Bishop building. So that gives us a lot of confidence around that area. But you need to convince yourself or be convinced that the economics are right and the buildings right? It's not simple like the Hawaii deal.

它會多一點 - 它有 - 它比這更細微。但是我們 - 很高興我們有這樣的經驗並且完成了出色的工作。她有在背後。那個團隊，包括建造、租賃和 1132 Bishop 大樓的一切。因此，這使我們對該領域充滿信心。但你需要說服自己或確信經濟學是正確的，建築是正確的？這不像夏威夷交易那麼簡單。

I was thinking more like a market like Warner Center, which you've mentioned in the past was perhaps a noncore market for you, and it sits today at (inaudible) occupancy...

我想的更像是一個像華納中心這樣的市場，你過去提到過它對你來說可能是一個非核心市場，它今天處於（聽不清）的入住狀態......

And although Warner Center -- the rents are -- I mean, the market there has not been destroyed. As a matter of fact, there's so much new development is in that area. I probably put on my list of a good -- starting to show whole another round a great promise. Remember, there are buildings being pulled out of that market right now for other reasons, right? I mean one guy (inaudible) just bought a site that had $500,000 of billing. That's going to be an offline or he's building practice fields, right? So that's out of the mix.

儘管華納中心——租金——我的意思是，那裡的市場並沒有被摧毀。事實上，那個領域有很多新的發展。我可能會在我的清單上列出一個好的 - 開始展示另一輪的偉大承諾。請記住，由於其他原因，現在有建築物被撤出該市場，對嗎？我的意思是一個人（聽不清）剛買了一個有 500,000 美元賬單的網站。那將是離線或者他正在建立練習場，對嗎？所以這是不合時宜的。

I think there's some buildings there that are going to be out of the mix and frankly, you might end up with a market that's back to where it was before the LNR project was built, which in any normal economy, that was one of the best markets in L.A. It was only until LNR added 25%, 30% to the size of the market that, that market started suffering. So if we do this reversal, everything else about that market if you were just sort of evaluating it for office or residential investment would be a big plus.

我認為那裡的一些建築將變得混亂，坦率地說，你最終可能會回到 LNR 項目建成之前的市場，這在任何正常經濟中都是最好的之一直到 LNR 將市場規模增加 25%、30% 之後，該市場才開始受到影響。因此，如果我們進行這種逆轉，那麼如果您只是對辦公室或住宅投資進行評估，那麼關於該市場的其他一切都將是一個很大的優勢。

It's got some -- the most residential is being built there and the rents are held extremely well, and all those projects are leased up. And then in terms of amenity base, they've seen one of the more dramatic conversions. Their big mall has been broken up with 2 pieces of the mall that was there having been sold to cranky as well as just other sites that I was talking about. One mall that piece, I think, is going to run 2 pieces, 2 other full-size blocks that he's building this Rams practice field and kind of sports center, right, for visitors and stuff. So there's like a lot of amenities, a lot of housing, all going in at once. So it's a pretty good bed.

它有一些——大多數住宅正在那裡建造，租金保持得非常好，所有這些項目都被出租了。然後在便利設施基礎方面，他們看到了一個更引人注目的轉變。他們的大型購物中心已經被拆散，其中有 2 塊購物中心被賣給了古怪的以及我正在談論的其他網站。一個商場，我認為，將運行 2 個，另外 2 個全尺寸街區，他正在建造這個 Rams 練習場和某種體育中心，對，供遊客和其他東西使用。所以有很多便利設施，很多住房，都同時投入使用。所以這是一張非常好的床。

My second question is a follow-up to Michael's question on retained cash flow from your dividend cut and the use of proceeds. You talked about buybacks as an opportunity multifamily, but you didn't mention the office. And I was wondering if you...

我的第二個問題是邁克爾關於股息削減和收益使用的留存現金流問題的後續問題。你談到回購是多戶家庭的機會，但你沒有提到辦公室。我想知道你是否...

I did not mention office, whether it be office, residential, I mean, all of those are opportunities. I think the opportunity -- I think there's actually a reasonable chance that opportunity could be better in office than residential. I guess -- just acquiring, but -- I definitely put off on the list, and I definitely maybe residential, definitely office, but remember, residential has held up better, and stock on everything is on the list.

我沒有提到辦公室，無論是辦公室，住宅，我的意思是，所有這些都是機會。我認為機會 - 我認為實際上有一個合理的機會，辦公室的機會比住宅更好。我想 - 只是收購，但是 - 我絕對推遲了名單，我肯定可能是住宅，絕對是辦公室，但請記住，住宅表現得更好，所有的股票都在名單上。

The next question is from Dylan Burzinsk with Green Street.

下一個問題來自 Green Street 的 Dylan Burzinsk。

I guess just sort of on that acquisition piece. When you look at it or in your discussions with JV partners, are they interested in deploying capital in today's environment?

我想只是在收購方面。當您查看或與 JV 合作夥伴討論時，他們是否有興趣在當今環境中部署資本？

Yes, they are. We've been in contact with all of our partners and explained the situation and explained to them what's going on in our leasing pipeline and why we're bullish on L.A. And we consistently got a positive response. It's great. If you find an interesting opportunity, please show it to us.

是的，他們是。我們一直在與我們所有的合作夥伴聯繫並解釋情況，並向他們解釋我們的租賃管道中發生的事情以及我們看好洛杉磯的原因。我們一直得到積極的回應。這很棒。如果您發現有趣的機會，請展示給我們。

I think they had confidence in the fact that -- we put a lot of money to the deals, and they go, well, if you like it, we like it, basically.

我認為他們對這樣一個事實充滿信心——我們在交易中投入了大量資金，然後他們就走了，好吧，如果你喜歡，我們基本上也喜歡。

The next question is from Tayo Okusanya with Credit Suisse.

下一個問題來自瑞士信貸的 Tayo Okusanya。

Yes. Thank you for the earlier comments about Warner Bros. Just curious for some of the larger other larger leases are expiring starting in 2023 into '24, like UCLA and also William Morris kind of some initial thoughts on those.

是的。感謝您早些時候對華納兄弟的評論。只是好奇一些更大的其他更大的租約將從 2023 年開始到 24 年到期，比如加州大學洛杉磯分校和威廉莫里斯對這些的一些初步想法。

Yes. So, we really only have 2 big leases in the portfolio. It's Warner Bros and then William Morris that you mentioned -- they act like large tenants. The rest of that list is multiple leases I already spoke about UCLA. I think they have over 20 leases with us. They don't act as a single entity or unit. But it's Warner Bros. Jordan already kind of gave you his thoughts on prospects for that. William Morris has a bunch of years left. So I don't think there's anything to talk about with them for a while. And then everything else, like I said, all the other tenants on the list act like smaller tenants, they aren't super material. It's a bunch of leases.

是的。所以，我們的投資組合中實際上只有 2 個大租約。你提到的是華納兄弟，然後是威廉莫里斯——他們的行為就像大租戶。該列表的其餘部分是我已經談到過加州大學洛杉磯分校的多個租約。我認為他們與我們有 20 多個租約。他們不作為一個單一的實體或單位。但這是華納兄弟。喬丹已經向你表達了他對這方面前景的看法。威廉莫里斯還有很多年。所以我覺得暫時跟他們沒什麼好談的。然後其他一切，就像我說的，名單上的所有其他租戶都像小租戶一樣，他們不是超級物質。這是一堆租約。

Got you. Okay. So that's helpful. And then also from a leasing perspective, again with your tenants, anything changing in terms of type of terms they're looking for? Is it taking longer for them to make decisions. Can you just kind of talk a little bit about just kind of some of what you're seeing in that respect?

明白了好的。所以這很有幫助。然後從租賃的角度來看，再次與您的租戶一起，他們正在尋找的條款類型方面有什麼變化嗎？他們做決定需要更長的時間嗎？你能談談你在這方面看到的一些東西嗎？

I think the notable change that we already talked about was that the average lease size for the Q4 results that we just published was down. It was smaller tenants that really held up our activity in Q4. We saw larger tenants not as active, not surprising given kind of what's going on with the economy.

我認為我們已經討論過的顯著變化是我們剛剛發布的第四季度業績的平均租賃規模有所下降。真正阻礙我們在第四季度的活動的是較小的租戶。我們看到較大的租戶不那麼活躍，考慮到經濟正在發生的事情，這不足為奇。

Our tenants tend to generally zeroing on a 5-year lease because they're smaller and most of them are personally guaranteeing the leases, they don't tend to feel comfortable going longer than that. Usually, what happens in a cycle is when the economy is down, they're nervous and they tend to go a little shorter term. And then when the economy is doing well and they're feeling good about their prospects, they're a little comfortable going a little longer. But we're almost always still zeroing in around that 5-year average, and that's still what we saw last quarter.

我們的租戶通常傾向於將 5 年租期歸零，因為他們規模較小，而且他們中的大多數人都親自為租約提供擔保，他們往往不願意續租更長的時間。通常，在一個週期中發生的事情是當經濟不景氣時，他們會很緊張，而且他們往往會走得更短一些。然後，當經濟表現良好並且他們對自己的前景感覺良好時，他們會稍微舒服一點。但我們幾乎總是將 5 年平均水平歸零，這仍然是我們上個季度看到的情況。

Got you. And it mean sense of smaller tenants, they're using more of your prebuilt product? Or are they actually building out space on their own?

明白了這意味著小租戶的感覺，他們正在使用更多您的預建產品？或者他們實際上是在自己建造空間？

We always prefer to build space for them. We're very good at it. We do a lot of prebuilt suites, we call it our spec suite program. So we'll go in and make a suite totally move-in ready. We've had a lot of success with that product. So that's something we continue to ramp up on. But yes, these are small tenants. They don't have real estate departments. So as much as we can help them with the process, make it easy for them and get the space built for them that's a much better turn out. So we do that as much as possible and a tenants appreciate it.

我們總是喜歡為他們建造空間。我們非常擅長。我們做了很多預建套件，我們稱之為我們的規範套件程序。因此，我們將進去並準備一套完全可以入住的套房。我們在該產品上取得了很大的成功。所以這是我們繼續加強的事情。但是，是的，這些都是小租戶。他們沒有房地產部門。因此，盡我們所能幫助他們完成這個過程，讓他們輕鬆一點，並為他們建造空間，結果會好得多。因此，我們盡可能地做到這一點，租戶對此表示讚賞。

And they also don't have large TI demands. So our TI costs are substantially lower than when you leasing towards them.

而且他們對 TI 的需求也不大。因此，我們的 TI 成本大大低於您向他們租賃時的成本。

(Operator Instructions) the next question is from Dave Rogers with Baird.

（操作員說明）下一個問題來自 Baird 的 Dave Rogers。

Maybe one question for me. Just in terms of the evictions, the tenants that haven't been paying. I know last quarter, you were down to the last handful, maybe 100,000 square feet or so of tenants that you were still working through. Can you just give us an update on where you are there? How much of an impact you're anticipating maybe to occupancy and where most of those blend and extend kind of done by the end of the year? Just so we can kind of think about the run rate for that group of tenants.

也許有一個問題要問我。就驅逐而言，沒有付款的租戶。我知道上個季度，你只剩下最後幾個，也許 100,000 平方英尺左右的租戶，你還在努力。你能告訴我們你在那裡的最新情況嗎？您預計對入住率的影響有多大，以及其中大部分融合和擴展到今年年底完成的程度？這樣我們就可以考慮一下這組租戶的運行率。

Yes. That group is done. It's in the numbers. It's dealt with. So there's no more people that weren't paying her out, and the other people are paying. There's money still owe to us by some people that are paying, and we work out deals that they pay over time.

是的。該組完成。它在數字中。它被處理了。所以沒有更多的人不付錢給她，而其他人正在付錢。一些正在付款的人仍然欠我們錢，我們制定了他們隨著時間的推移支付的交易。

And there's money still addressed by some people that are out, that we're still pursuing -- collection from.

一些外出的人仍然在處理一些錢，我們仍在追求——從中收集。

Yes. But -- in terms of occupancy, you have this strange impact on occupancy of people that were in occupancy, but they weren't paying. So that was weird, right, you're used to if they're in, they're paying. And that's what COVID and the moratoriums did, and that's resolved. That's for office and residential, it will be resolved by the end of March.

是的。但是——就入住率而言，你對入住的人的入住率產生了這種奇怪的影響，但他們沒有付錢。所以這很奇怪，對吧，如果他們在，你就習慣了，他們在付錢。這就是 COVID 和暫停措施所做的，並且已經解決了。那是寫字樓和住宅，三月底前解決。

In the occupancy number, okay?

在入住人數，好嗎？

Yes.

是的。

The next question is a follow-up from Blaine Heck with Wells Fargo.

下一個問題是 Blaine Heck 與 Wells Fargo 的後續問題。

Jordan, just circling back to the state legislation that opened up residential zoning in certain areas in L.A. I guess, do you think that change is going to trigger a lot of additional supply in the market? And have you seen any projects announced as a direct result of that legislation? Or is it just too early to tell?

喬丹，回到在洛杉磯某些地區開放住宅分區的州立法。我想，你認為這種變化會引發市場上的大量額外供應嗎？您是否看到任何作為該立法的直接結果而宣布的項目？還是現在下結論還為時過早？

I hate to say that I don't think it's going to open a lot of new supply simply because they sort of -- we happen to be a developer that happens on a lot of land in those areas. I don't think a lot for infill type product, we are aware from that perspective. They didn't make it cheaper, right? If you want to -- if you just went, I liked that rule. Now I'm going to go buy a piece of land because I know about that rule. I don't think that they do need to make that land any cheaper, probably going to be more expensive.

我不想說我不認為它會開放很多新的供應，僅僅是因為它們有點——我們恰好是在這些地區的很多土地上發生的開發商。我對填充型產品的看法不多，我們從這個角度意識到了這一點。他們沒有讓它更便宜，對吧？如果你想——如果你剛去，我喜歡那個規則。現在我要去買一塊地，因為我知道那條規則。我認為他們不需要讓那塊土地變得更便宜，可能會更貴。

They just kind of enhance the value of our land. So we can now kind of develop it as residential without having gone -- going through as many hurdles. So it -- at least in the areas where we own all this property, I don't -- I mean, they'd say this to them, I don't want them to repeal it, but I don't think it really did anything other than for someone like us that happen to have so many sites. They didn't do much to boost the production of apartments.

它們只是提高了我們土地的價值。因此，我們現在可以將其開發為住宅而無需經歷 - 經歷盡可能多的障礙。所以它 - 至少在我們擁有所有這些財產的地區，我不 - 我的意思是，他們會對他們說這個，我不希望他們廢除它，但我不認為除了為像我們這樣碰巧擁有如此多網站的人做任何事情。他們並沒有為促進公寓的生產做太多事情。

All right. That's helpful. And then last one for me. There were some reports that came out earlier this year that Regal Cinema was looking to close the Sherman Oaks location there, I think, leasing from you. Can you just comment on that situation potential earnings impact and any plans you may have for that space?

好的。這很有幫助。然後最後一個給我。今年早些時候有一些報導稱，Regal Cinema 打算關閉那裡的 Sherman Oaks 場地，我想是從你那裡租來的。您能否評論一下這種情況的潛在收益影響以及您對該領域的任何計劃？

Well, I don't want to talk about individual tenants. And it's true. We saw that too. I don't know in the end whether that's what happens there or not. But I don't want to -- I mean, we don't talk about individual tenants.

好吧，我不想談論個別租戶。這是真的。我們也看到了。我不知道最後是否會發生這種情況。但我不想——我的意思是，我們不談論個別租戶。

The next question is from Rich Anderson with SMBC Nikko.

下一個問題來自 SMBC Nikko 的 Rich Anderson。

So I was intrigued by your comment in the call here, Jordan, where you thought that there was more opportunity, I think I heard you right, more opportunity office than there was in residential. First of all, did I catch that comment correctly?

所以我對你在這裡的電話中的評論很感興趣，喬丹，你認為那裡有更多的機會，我想我沒聽錯，辦公室的機會比住宅多。首先，我是否正確理解了該評論？

Yes.

是的。

And then -- so the answer to the question is why? I mean like when we're in a world where hybrid office is sort of the thing, it's not a need-based situation, but a want based in some cases, whereas residential is quite different, you have a very unique residential platform. What is it that's making it more interesting on the office side from an investment standpoint from your line of sight?

然後——所以問題的答案是為什麼？我的意思是，當我們處在一個混合辦公的世界裡，這不是基於需求的情況，而是在某些情況下是基於需求的，而住宅則完全不同，你有一個非常獨特的住宅平台。從投資的角度來看，是什麼讓它在辦公室方面變得更有趣？

Well, I'll tell you, I spend -- we had this one paragraph in my prepared remarks that was at the end of my prepared remarks. And Ted called it the overwork paragraph, which you said you overlook some more because I just want to get it right so much.

好吧，我會告訴你，我花了——我們在我準備好的發言中有一段是在我準備好的發言結束時。泰德稱它為過度工作段落，你說你忽略了更多，因為我非常想把它做好。

But basically, what I -- what that paragraph said, which was trying to give people a feel for why I'm so positive on office in our markets is while we have gone into for real estate at least a recessionary economy, the things that you just mentioned and the things that I'll reiterate for you, which is whether it be work from home or people not being so interested in urban office or commutes or public transit, all those things that seem to be additional obstacles for people that own office buildings across the markets.

但基本上，我——那段話所說的，試圖讓人們了解為什麼我在我們的市場上如此積極的辦公室是在我們進入房地產至少是經濟衰退的時候，那些事情你剛才提到的以及我要為你重申的事情，無論是在家工作還是對城市辦公室、通勤或公共交通不那麼感興趣的人，所有這些似乎對擁有的人來說都是額外的障礙遍布市場的寫字樓。

I just don't see them being here. They're not here. And so when COVID finally lightened up a year ago, you saw our leasing booming. I mean we were in full recovery, and I was extremely optimistic. And -- but not optimistic because I'm just optimistic guy, optimistic because we have like some of our strongest leasing quarters of our company's history, and we have multiple of them in a row in new and in total.

我只是沒看到他們在這裡。他們不在這裡。因此，當 COVID 在一年前終於有所緩解時，您看到了我們的租賃業務蓬勃發展。我的意思是我們完全康復了，我非常樂觀。而且——但並不樂觀，因為我只是一個樂觀的人，樂觀是因為我們有一些我們公司歷史上最強勁的租賃季度，而且我們連續有多個新的和總共的租賃季度。

So when you go that's happening, you certainly posted time that these discussions about these other items are there. I go, okay, that gives me a lot of confidence. That's number one, okay? So put that as a giant number one, though, because I don't think that those are issues our markets are dealing with.

所以當你去的時候，你肯定會發布關於這些其他項目的討論的時間。我去，好吧，這給了我很大的信心。這是第一，好嗎？所以把它作為一個巨大的第一，因為我不認為這些是我們的市場正在處理的問題。

And then add to that, for number two, which is we're one of the only big gateway markets that has true diversity around the tenant base, right? We're not just tech, just entertainment, or just finance like New York or whatever, just cards like Detroit, whatever you want to talk about, we really have a lot of industries that drive demand here. And then that is the last thing is that all through this pandemic period and plus, plus and probably our whole careers for me and Ken, we've been strengthening our operating platform.

然後補充一點，第二，我們是唯一在租戶基礎上具有真正多樣性的大型門戶市場之一，對嗎？我們不只是科技，只是娛樂，或者像紐約那樣的金融，像底特律這樣的卡片，無論你想談論什麼，我們這裡確實有很多推動需求的行業。最後一件事是，在整個大流行期間，再加上，可能還有我和肯的整個職業生涯，我們一直在加強我們的運營平台。

And now our operating platform, I mean, to say it has no equal is an understatement. I mean, it's really an understatement I mean in our market, in our market. So I just feel like that platform, the diversity of tenants, the fact that these larger issues that I'm not sure they're even going to be correct for other markets, but I know 100% they're not correct right now for our market, okay? That those issues are living, that's creating probably a buying opportunity against a backdrop where I am totally confident long term in the performance of our office portfolio for the reasons I just said.

而現在我們的運營平台，我的意思是，說它無與倫比是輕描淡寫的。我的意思是，我的意思是在我們的市場上，在我們的市場上，這真的是一種輕描淡寫的說法。所以我只是喜歡那個平台，租戶的多樣性，這些更大的問題，我不確定它們是否適用於其他市場，但我 100% 知道它們現在不適用我們的市場，好嗎？由於我剛才所說的原因，我對我們辦公室投資組合的長期表現充滿信心，這些問題仍然存在，這可能正在創造一個購買機會。

So that's why right now apartments, which people still have a lot of confidence around apartments, so maybe they're not going to be discounted as much, but there's a lot less confidence around office. So I suppose with the confidence I just told you I have, which is that over rework paragraph that I had said in my speech, makes me go, that's probably where there's going to be more opportunities.

所以這就是為什麼現在的公寓，人們對公寓仍然很有信心，所以也許他們不會打折那麼多，但對辦公室的信心要低得多。所以我想我剛剛告訴你我有信心，這是我在演講中說過的返工段落，讓我走了，那可能會有更多機會。

Okay. And so kind of related to that, you had a couple or 3 quarters in 2022 where things were moving along nicely and then you had this hiccup in the fourth quarter, and that experience kind of -- did a lot to inform you about 2023 guidance and the flat occupancy scenario and so on. So that seems like a really kind of a sensitive topic in the sense that it could turn back on pretty quickly, right? Like if the Fed gets it right...

好的。與此相關的是，你在 2022 年有幾個或三個季度進展順利，然後你在第四季度遇到了這個小問題，而這種經歷 - 為你提供了很多有關 2023 年指導的信息以及公寓入住場景等等。所以這似乎是一個非常敏感的話題，因為它可以很快恢復，對吧？就像美聯儲做對了……

It -- turned off quickly. Yes, a -- and that's what I tried to say when I was asked about our occupancy guidance.

它——很快就關掉了。是的，當我被問及我們的入住指南時，這就是我想說的。

That's my point. So maybe the very fact that it moves so quickly in one direction is your confidence behind office, I guess -- and I guess I'm kind of caring what you just said, but so setting flat occupancy is the absolute probably worst-case scenario and more likely, you probably see occupancy lift as the year goes on as long as we kind of get the macro right, and we don't have like a really disruptive economic scenario from Fed activity and so on. Is that the way you're thinking about it, setting a floor?

這就是我的觀點。所以也許它在一個方向上如此迅速地移動這一事實是你對辦公室的信心，我想 - 我想我有點關心你剛才說的話，但是設置固定入住率絕對可能是最壞的情況更有可能的是，隨著時間的推移，你可能會看到入住率上升，只要我們的宏觀經濟是正確的，而且我們沒有像美聯儲活動等那樣真正破壞性的經濟情景。這就是你考慮的方式，設置地板？

Well, one thing -- so real estate is not designed to be judged quarter-to-quarter. I know that's the world we've bought into, and that's what we're doing. So that's what people probably more care about. As I just said, which you just said so we both said, so both in agreement. In the long term, I'm very optimistic about our market. I'm not so optimistic if you're bringing your point of view back to the quarter-to-quarter view to where the economy is going and that the Feds is going to be so quick that we're like, okay, we're done and wipe off the hands and move off the table.

好吧，有一件事——所以房地產並不是為了按季度來判斷的。我知道這就是我們已經融入的世界，這就是我們正在做的事情。所以這可能是人們更關心的。就像我剛才說的，你剛才說了，所以我們都說了，所以我們都同意了。從長遠來看，我對我們的市場非常樂觀。如果你將你的觀點帶回到季度到季度的經濟發展方向，並且美聯儲將如此之快以至於我們就像，好吧，我不是那麼樂觀完成後擦乾手，離開桌子。

So we have to see how this year plays out and probably a lot of our guidance, our guidance is not trying to give you messaging around what we think of the long-term prospects for our market or our ability to lease up our buildings. It's giving you messaging around, we don't have a good idea to how much the Fed is going to keep increasing rates and keep tamping down.

因此，我們必須看看今年的結果如何，可能還有很多我們的指導意見，我們的指導意見並不是要向您傳達我們對市場長期前景或我們出租建築物的能力的看法。它給你傳遞信息，我們不知道美聯儲將在多大程度上繼續加息和壓低利率。

I actually think the fact that the employment numbers came in so strong and all the rest of that probably means that's going to be unless even harder. And the beating from the Fed is certainly having a much bigger impact on real estate than some other industries. It's maybe it's also beaten down on tech. But somebody is doing a bunch of hiring and growing, some are out there, and therefore, that's probably going to give them confidence to be it on us even more. And that's what concerns me.

實際上，我認為就業數據如此強勁這一事實可能意味著除非更難，否則情況將會如此。美聯儲的打擊對房地產的影響肯定比其他一些行業大得多。也許它在技術上也被打敗了。但是有人正在招聘和成長，有些人在那裡，因此，這可能會讓他們更有信心成為我們的一員。這就是我所關心的。

So you're ready to start acquiring, if you can, sooner rather than later before there is any sort of recovery when entering more competition and so on, right? Like you want to get moving before all that starts to happen again...

所以你已經準備好開始收購了，如果可以的話，在進入更多競爭等情況下有任何恢復之前，宜早不宜遲，對吧？就像你想在一切再次開始發生之前開始行動......

Yes. when we do something, it has much more to do with the opportunity that's presented than my time line in my mind. I mean, I need a good opportunity to (inaudible). Look, everything on -- first of all, it's not a public call and secondly, it's no secret that people in an office building. If you own an office building in West L.A., you're not sitting there, going, I'm dead forever because you're seeing activity. So we need the right opportunity to come up.

是的。當我們做某事時，它更多地與呈現的機會有關，而不是我腦海中的時間線。我的意思是，我需要一個好機會（聽不清）。聽著，一切都在進行——首先，這不是公開電話，其次，辦公樓裡的人已經不是什麼秘密了。如果你在西洛杉磯擁有一棟辦公樓，你不會坐在那裡，走，我永遠死了，因為你看到了活動。所以我們需要合適的機會上來。

This concludes our question-and-answer session. I would like to turn the conference back over to Jordan Kaplan for any closing remarks.

我們的問答環節到此結束。我想將會議轉回 Jordan Kaplan 的閉幕詞。

Thank you for joining us, and we look forward to our call a quarter from now. Bye-bye.

感謝您加入我們，我們期待著一個季度後的電話。再見。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。