Eastgroup Properties Inc (EGP) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Eastgroup Properties first quarter 2025 earnings conference call and webcast. (Operator Instructions) This call is being recorded on Thursday, April 24, 2025.

女士們、先生們，早安，歡迎參加 Eastgroup Properties 2025 年第一季財報電話會議和網路廣播。（操作員指示）本次通話於 2025 年 4 月 24 日星期四錄製。

I would now like to turn the conference over to Marshall Loeb. Please go ahead.

現在我想將會議交給馬歇爾·勒布。請繼續。

Good morning, and thanks for calling in for our first quarter 2025 conference call. As always, we appreciate your interest. Brent Wood, our CFO, is also on the call. Since we'll make forward-looking statements, we ask that you listen to the following disclaimer.

早安，感謝您參加我們的 2025 年第一季電話會議。一如既往，我們感謝您的關注。我們的財務長布倫特伍德 (Brent Wood) 也參加了電話會議。由於我們將做出前瞻性陳述，因此我們請您聽取以下免責聲明。

Please note that our conference call today will contain financial measures such as PNOI and FFO that are non-GAAP measures as defined in Regulation G. Please refer to our most recent financial supplement and to our earnings press release, both available on the Investor page of our website and to our periodic reports furnished or filed with the SEC for definitions and further information regarding our use of these non-GAAP financial measures and a reconciliation of them to our GAAP results.

請注意，我們今天的電話會議將包含 PNOI 和 FFO 等財務指標，這些指標屬於 G 條例中定義的非 GAAP 指標。請參閱我們最新的財務補充報告和收益新聞稿（均可在我們網站的「投資者」頁面上找到）以及我們向美國證券交易委員會 (SEC) 提供或提交的定期報告，以了解定義以及有關我們對這些非 GAAP 財務指標的使用以及將它們與我們的 GAAP 結果進行調節的更多資訊。

Please also note that some statements during this call are forward-looking statements as defined in and within the Safe Harbors under the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements in the earnings press release, along with our remarks, are made as of today and reflect our current views about the company's plans, intentions, expectations, strategies and prospects based on the information currently available to the company and on assumptions it has made. We undertake no duty to update such statements or remarks, whether as a result of new information, future or actual events or otherwise.

另請注意，本次電話會議中的某些陳述屬於《1933 年證券法》、《1934 年證券交易法》和《1995 年私人證券訴訟改革法》的安全港所定義的前瞻性陳述。收益新聞稿中的前瞻性陳述以及我們的評論均截至今日做出，反映了我們根據公司目前掌握的資訊和所做的假設對公司計劃、意圖、期望、策略和前景的當前看法。我們不承擔更新此類聲明或評論的義務，無論其是否由於新資訊、未來或實際事件或其他原因。

Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Please see our SEC filings, including our most recent annual report on Form 10-K for more detail about these risks.

此類聲明涉及已知和未知的風險、不確定性和其他可能導致實際結果大不相同的因素。有關這些風險的更多詳細信息，請參閱我們的 SEC 文件，包括我們最新的 10-K 表年度報告。

Thanks, Casey. Good morning. I'll start by thanking our team. They've worked hard, and we've made solid progress on several of our 2025 goals. I'm proud of the results achieved.

謝謝，凱西。早安.首先我要感謝我們的團隊。他們努力工作，我們在 2025 年的幾個目標上取得了紮實的進展。我為所取得的成果感到自豪。

Our first quarter results demonstrate the quality of the portfolio we've built and the resiliency of the industrial market. Some of the results include funds from operations, excluding involuntary conversions were $2.12 a share, up 7.1% for the quarter over prior year. And now for over a decade, our quarterly FFO per share has exceeded the FFO per share reported in the same quarter prior year, truly a long-term trend. Quarter end leasing was 97.3% with occupancy at 96.5%. Average quarterly occupancy was 95.8%, which, although historically strong, is down 170 basis points from first quarter 2024.

我們第一季的業績證明了我們所建構的投資組合的品質和工業市場的彈性。部分業績包括營運資金（不包括非自願轉換）為每股 2.12 美元，比上年同期成長 7.1%。十多年來，我們的季度每股 FFO 一直超過去年同期報告的每股 FFO，這確實是一個長期趨勢。季末租賃率為 97.3%，入住率為 96.5%。平均季度入住率為 95.8%，儘管歷史最高水平，但比 2024 年第一季下降了 170 個基點。

Quarterly re-leasing spreads were 47% GAAP and 31% cash. Cash same-store NOI rose 5.2% for the quarter despite lower occupancy. And finally, we have the most diversified rent roll in our sector with our top 10 tenants falling to 7.1% of rents, down 70 basis points from a year ago. We view our geographic and revenue diversity as strategic paths to stabilize future earnings regardless of the economic environment. In summary, we're pleased with how 2025 began.

季度再租賃利差為 47%（以 GAAP 計算）和 31%（以現金計算）。儘管入住率較低，本季現金同店淨營業利潤仍上漲 5.2%。最後，我們的租金收入在業界最為多樣化，前十大租戶的租金收入下降至 7.1%，比一年前下降了 70 個基點。我們將地域和收入多樣性視為無論經濟環境如何都能穩定未來收益的策略途徑。總而言之，我們對 2025 年的開局感到滿意。

The tariff discussions dramatically raised market uncertainty in terms of severity and duration or even likelihood of any downturn. To address the uncertainty, we're focusing on a couple of things. First, we're focused on leasing to maintain occupancy and making the best quick leasing decisions we can. Secondly, we're grateful for our balance sheet, including outstanding forward equity agreements position us well. We've raised our threshold for new investments and development starts until there's better economic visibility.

關稅討論大大增加了市場在嚴重程度、持續時間甚至出現經濟下滑的可能性方面的不確定性。為了解決不確定性，我們將重點放在幾件事上。首先，我們專注於租賃以維持入住率並做出最佳的快速租賃決策。其次，我們感謝我們的資產負債表，包括未償還的遠期股權協議，這為我們提供了良好的條件。我們提高了新投資和開發項目的門檻，直到經濟情勢更加明朗。

And from another perspective, uncertainty typically allows opportunistic investments, making balance sheet flexibility all the more valuable. In terms of the portfolio square feet leased, the past two quarters were two of our top three historically. That momentum speaks highly in terms of the quality of our team, our properties and our markets. But the leasing market was improving and then trade talks created uncertainty. It's too early to tell the widespread tenant reaction.

從另一個角度來看，不確定性通常會帶來機會性投資，從而使資產負債表的靈活性變得更有價值。就租賃的投資組合面積而言，過去兩個季度是我們歷史上排名前三的兩個季度。這種勢頭充分說明了我們團隊、我們的財產和我們的市場的品質。但租賃市場正在改善，隨後貿易談判又帶來了不確定性。現在判斷租戶的普遍反應還為時過早。

As we've stated before, our development starts are pulled by market demand within our parks. Based on economic uncertainty, we're reforecasting 2025 starts to $250 million. We're projecting the majority of the starts in the second half of the year. We made solid progress on development leasing year-to-date. However, expectations are for slower, deliberate decision-making near term.

正如我們之前所說，我們的開發啟動是由公園內的市場需求所推動的。基於經濟的不確定性，我們重新預測 2025 年的起始價為 2.5 億美元。我們預計大部分項目將於今年下半年開工。今年迄今為止，我們在開發租賃方面取得了紮實的進展。然而，預計近期的決策將會更加緩慢、更加謹慎。

Our emphasis is on expectations as our active prospects thankfully remain active prospects. In terms of starts, we'll ultimately follow demand on the ground to dictate the pace. Longer term, the continued decline in the supply pipeline is promising. Starts were historically low again this first quarter. We expect the uncertainty to further delay new planned starts.

我們強調的是期望，因為我們的活躍前景幸運地仍然是活躍的前景。就開工而言，我們最終將根據當地需求來決定進度。從長期來看，供應管道的持續下降是令人鼓舞的。今年第一季開工率再次創歷史新低。我們預計不確定性將進一步推遲新的開工計畫。

The combination of limited availability and new modern facilities, along with higher development costs will put upward pressure on rents as demand strengthens. And as demand improves, our goal is to capitalize earlier than our private peers on development opportunities based on the combination of our team's experience, our balance sheet strength, existing tenant expansion needs and the land and permits we have in hand.

隨著需求的增強，有限的供應、新的現代化設施以及更高的開發成本將對租金造成上行壓力。隨著需求的增加，我們的目標是根據我們團隊的經驗、我們的資產負債表實力、現有租戶擴張需求以及我們手中的土地和許可證，比我們的私營同行更早地利用發展機會。

Brent will now speak to several topics, including assumptions within our updated 2025 guidance.

布倫特現在將談論幾個主題，包括我們更新的 2025 年指引中的假設。

Good morning. Our first quarter results reflect the terrific execution of our team, the solid overall performance of our portfolio and the continued success of our time-tested strategy. FFO per share for the quarter exceeded the midpoint of our guidance range at $2.12 per share compared to $1.98 for the same quarter last year, an increase of 7.1% excluding involuntary conversion gains.

早安.我們第一季的業績反映了我們團隊的出色表現、我們投資組合的穩健整體表現以及我們久經考驗的策略的持續成功。本季每股 FFO 超過我們指引範圍的中點，為每股 2.12 美元，而去年同期為每股 1.98 美元，不包括非自願轉換收益則成長了 7.1%。

As a reminder, we typically incur about one-third of our annual G&A expense in the first quarter, primarily due to the accelerated expense of newly granted equity-based compensation for retirement-eligible employees, which totaled approximately $2.5 million during the quarter. From a capital perspective, we were opportunistic in accessing the equity market.

提醒一下，我們通常在第一季產生約三分之一的年度 G&A 費用，這主要是由於為符合退休資格的員工新授予的股權薪酬的加速費用，本季度總計約 250 萬美元。從資本角度來看，我們抓住機會進入股票市場。

During the quarter, we directly issued common shares for gross proceeds of $6 million, settled forward shares agreements for gross proceeds of $67 million, with an additional settlement of $45 million after quarter end. Collectively, those shares issued in the first quarter were initiated at an average price of $176 per share.

在本季度，我們直接發行普通股，總收益為 600 萬美元，結算遠期股票協議，總收益為 6700 萬美元，並在季度結束後額外結算 4500 萬美元。總體而言，第一季發行的股票平均發行價為每股 176 美元。

As of today, we have $145 million in outstanding forward agreements at an average weighted price of $183 per share and full capacity of our $675 million credit facilities. In January, we refinanced a $100 million unsecured term loan, reducing the credit spread by 30 basis points, resulting in savings of approximately $1.5 million over the remaining five years of term. In March, we repaid a $50 million unsecured term loan and only have $95 million of debt maturing for the remainder of the year.

截至今天，我們有 1.45 億美元未償還遠期協議，平均加權價格為每股 183 美元，我們的 6.75 億美元信貸額度已全部用完。一月份，我們對 1 億美元的無擔保定期貸款進行了再融資，將信用利差降低了 30 個基點，從而在剩餘的五年期限內節省了約 150 萬美元。3 月份，我們償還了 5,000 萬美元的無擔保定期貸款，今年剩餘時間內僅剩 9,500 萬美元的債務到期。

Although capital markets are fluid, our balance sheet remains flexible and strong with record financial metrics. Our debt to total market capitalization was 13.7%, unadjusted debt-to-EBITDA ratio increased to 3 times and our interest and fixed charge coverage increased to 15 times. Looking forward, we estimate FFO guidance for the second quarter to be in the range of $2.13 to $2.21 per share and $8.81 to $9.01 for the year, excluding involuntary conversion gains, which is up slightly from our prior guidance. Those midpoints represent increases of 5.9% and 7.2% compared to the prior year. Our revised guidance increases the midpoint for cash same-store growth by 40 basis points and increases average occupancy by 10 basis points.

儘管資本市場瞬息萬變，但我們的資產負債表仍然靈活而強勁，財務指標創下紀錄。我們的負債與總市值的比率為 13.7%，未調整的負債與 EBITDA 比率增加到 3 倍，我們的利息和固定費用覆蓋率增加到 15 倍。展望未來，我們預計第二季的 FFO 指引將在每股 2.13 美元至 2.21 美元之間，全年的 FFO 指引將在 8.81 美元至 9.01 美元之間（不包括非自願轉換收益），這略高於我們先前的指引。與前一年相比，這兩個中點分別成長了 5.9% 和 7.2%。我們修訂後的指引將現金同店成長中點提高 40 個基點，平均入住率提高 10 個基點。

Considering the uncertainty in the markets and the volatility in our share price, we reduced development starts by $50 million and reduced our capital proceeds by $190 million. This assumes that we do not raise any additional external capital and utilize our revolver facilities. G&A increased due to less overhead capitalization as a result of reducing development starts and increase in accounting for equity-based compensation. Our tenant collections remain healthy and bad debt as a percentage of revenue was lower in the first quarter compared to 2024. We continue to estimate uncollectible rents to be in the 40- to 50-basis-point range of revenues, a little ahead of our historic run rate.

考慮到市場的不確定性和我們股價的波動，我們將開發啟動資金減少了 5,000 萬美元，並將資本利得減少了 1.9 億美元。這假設我們不籌集任何額外的外部資本並利用我們的循環信貸設施。由於開發啟動減少以及股權薪酬會計增加導致間接資本化減少，導致一般及行政費用增加。我們的租戶收款情況依然良好，第一季壞帳佔收入的百分比與 2024 年相比有所下降。我們繼續估計無法收回的租金將佔收入的 40 至 50 個基點，略高於我們的歷史運作率。

In closing, we are pleased with the start of the year, especially considering the macro uncertainty related to tariffs and prolonged higher interest rate environment. And as we have in both good and uncertain times in the past, we will rely on our financial strength, the experience of our team and the quality and location of our multi-tenant portfolio to lead us into the future.

最後，我們對今年的開局感到滿意，特別是考慮到與關稅和長期高利率環境相關的宏觀不確定性。正如我們在過去順利和不確定的時期所做的那樣，我們將依靠我們的財務實力、我們團隊的經驗以及我們多租戶組合的品質和位置來引領我們走向未來。

Now Marshall will make final comments.

現在馬歇爾將發表最後的評論。

Thanks, Brent. In closing, I'm excited about the start to the year. Our management team has worked through numerous periods of uncertainty before, and we'll navigate our way through this turn as well. Regardless of the environment, our goals are to drive FFO growth per share and raise portfolio quality. If we can do those, we'll continue creating NAV growth for our shareholders.

謝謝，布倫特。最後，我對新的一年的開始感到興奮。我們的管理團隊之前已經經歷過無數不確定的時期，我們也將順利度過這個轉捩點。無論環境如何，我們的目標都是推動每股 FFO 成長並提高投資組合品質。如果我們能夠做到這一點，我們將繼續為股東創造資產淨值成長。

And stepping back from the near term, I like our positioning as our portfolio benefits from several long-term positive secular trends such as population migration, nearshoring and onshoring trends, evolving logistics chains and historically lower shallow bay market vacancies. We also have a proven management team with a long-term public track record. Our portfolio quality in terms of buildings and markets improves each quarter. Our balance sheet is stronger than it's ever been, and we're upgrading our diversity, both in our tenant space as well as our geography.

從短期來看，我喜歡我們的定位，因為我們的投資組合受益於幾個長期積極的世俗趨勢，例如人口遷移、近岸外包和在岸外包趨勢、不斷發展的物流鏈以及歷史上較低的淺水灣市場空置率。我們也擁有一支經驗豐富的管理團隊，擁有長期的公共業績記錄。我們的建築和市場方面的投資組合品質每季都在提高。我們的資產負債表比以往任何時候都更加強勁，而且我們正在提升我們的多樣性，包括租戶空間和地理位置。

We'd now like to open up the call for questions.

我們現在開始提問。

(Operator Instructions)

（操作員指示）

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

Can you just touch a little bit more about the pace of leasing you're seeing thus far in the second quarter, whether you're seeing a notable pullback in activity and whether that's any more apparent in specific markets or if there are any that are more insulated? And related to that, how quickly you think leasing could return to normalized levels or better given pent-up demand once trade agreements start to materialize?

您能否稍微談談第二季迄今的租賃速度，是否看到租賃活動明顯回落，以及這種現像在特定市場是否更為明顯，或者是否有一些市場受到的影響較小？與此相關，您認為一旦貿易協定開始實現，租賃能夠多快恢復到正常水準或更好地滿足被壓抑的需求？

It's Marshall. I'll take a stab, and Brent, jump in with any color. I'll take a start at that. We've been really pleased with our leasing volume, I think from the industrial, if I go back just a moment, our fourth quarter was our best quarter ever in terms of square footage leased, and our first quarter was our third best quarter ever. So really, as kind of postelection as some of our peers have talked, things seem to feel like there was maybe at least, for better or worse, you had an election behind you and you had some things like that, and we had a lot of volume.

是馬歇爾。我會嘗試一下，布倫特，用任何顏色加入。我就從那開始吧。我們對我們的租賃量感到非常滿意，我想從工業角度來看，如果我回顧一下，我們的第四季度是我們有史以來租賃面積最好的一個季度，而我們的第一季是我們有史以來第三好的一個季度。所以實際上，正如我們的一些同行所說的那樣，在選舉之後，事情似乎感覺至少，無論好壞，你已經結束了一場選舉，並且發生了一些類似的事情，而且我們有很多事情要做。

And as you said, supply has been really -- been falling now for 10 quarters. It's certain markets, it's as low as it's been in 8 to 10 years in terms of what's in the construction pipeline. So we're excited about that. Longer term, in terms of leasing volume, I know it's been -- it was early this month. It's really been awfully soon to tell.

正如您所說，供應量實際上已經連續 10 個季度下降。就某些市場而言，就建築管道而言，其水準已達到 8 至 10 年來的新低。所以我們對此感到很興奮。從長期來看，就租賃量而言，我知道已經是本月初了。現在說這個還為時過早。

I haven't -- we haven't really seen leasing volume. There's really specific one market and even one building where we've had one, I believe, was just before kind of tariffs were announced at our Dominguez building. It's near -- it's in Carson, California, near the ports of LA and Long Beach, where we've had two different leases out on that building and both prospects neither has gone away, but in both cases, they put things on hold until there was a little more certainty. And I get that.

我沒有——我們還沒有真正看到租賃量。我相信，確實有一個特定的市場，甚至有一個建築物，我們在其中有一個，就在我們的 Dominguez 建築物宣布徵收關稅之前。它位於加州卡森市，靠近洛杉磯和長灘港口，我們已經對該建築簽了兩份不同的租約，而且兩個前景都還沒有消失，但在這兩種情況下，他們都將事情擱置，直到情況更加確定。我明白了。

They were Asian-related, port-related users. I like that our buildings, by and large, but for the vast majority, serve the consumer. We want to be as near the consumer as we can be and not port related. So our leasing volumes have really not shifted. We're happy with where we sit at the end of April, but it's still kind of a wait and see.

他們是與亞洲、港口相關的使用者。我喜歡我們的建築，整體而言，但絕大多數是為消費者服務的。我們希望盡可能靠近消費者，並且不與港口相關。因此我們的租賃量實際上沒有變化。我們對四月底的狀況感到滿意，但仍需拭目以待。

But to date, if you talk to our teams in the field, absent California and specifically LA, Orange County, which is not new, that market has been struggling for a little bit, that's where we felt it. And the other markets still fill, knock on wood, pretty solid. Probably the further east you go in our portfolio, the better the leasing volume has been. The Carolinas, Atlanta, Florida have been a little bit ahead of some of our other regions, but it's not to say Texas is bad. It's just not quite the pace we've seen in the Eastern region of late.

但到目前為止，如果你與我們在該領域的團隊交談，你會發現除了加州，特別是洛杉磯和奧蘭治縣，這個市場已經陷入了困境，這並不是什麼新鮮事，我們就是在那裡感受到的。而其他市場仍然充滿，敲木頭，相當穩固。可能我們投資組合中越往東走，租賃量就越大。卡羅來納州、亞特蘭大、佛羅裡達州比我們其他一些地區略勝一籌，但這並不是說德克薩斯州不好。這與我們最近在東部地區看到的速度不太一樣。

Samir Khanal, Bank of America.

薩米爾·卡納爾，美國銀行。

Marshall, one of the comments you mentioned even in the press release and even kind of your opening remarks was that you're working to complete leases as quickly as possible, right, given sort of the macro environment. You talked a little bit about the urgency. Maybe expand on that. Just -- I mean, are you willing to be a little bit more flexible with tenants in terms of their demand? I mean are you -- what are you giving up on your end to kind of get the leases through? Just is it lower rents to gain the occupancy? Maybe help us think through that.

馬歇爾，您在新聞稿中，甚至在開場白中提到的評論之一是，考慮到宏觀環境，您正在努力盡快完成租賃。您稍微談到了緊迫性。也許可以進一步擴展這一點。只是——我的意思是，您是否願意在租戶的需求方面更加靈活？我的意思是，為了獲得租約，您放棄了什麼？難道只是降低租金就能增加入住率嗎？也許可以幫助我們思考這個問題。

Sure. No, good question. And it's good to see you with the new business card. Congrats on the new role, Samir. And in terms of leasing, maybe a little bit, as I expand on it, the two leases we've been out, for example, in Los Angeles on this building, the terms are pretty similar.

當然。不，好問題。很高興看到您有新的名片。恭喜薩米爾獲得新職位。至於租賃方面，也許有一點，當我詳細說明時，我們已經簽了兩份租約，例如在洛杉磯的這棟建築，條款非常相似。

And our leasing attorneys that we use are usually pretty prompt, but we've said, let's try to move as quickly as we can in responding to their counsel's comments, getting permits, getting everything we can because it feels like you're one new cycle away from someone saying we're going to put things on hold. So thankfully, to date, it hasn't been the economics.

我們聘用的租賃律師通常都很迅速，但我們說過，我們要盡快回應他們的律師的意見，獲得許可，盡我們所能，因為感覺你離有人說我們要暫停事情只有一步之遙了。值得慶幸的是，到目前為止，這還不是經濟問題。

And I think we've always wanted to be fast on our -- on leasing, but we've said, in this environment, probably there's even more of an emphasis. Let's try to turn the lease comments as quickly let's get proposals out as quickly as we can because you're -- things were going great through March, and they haven't -- certainly haven't turned, but there's a lot of reasons where people could put things on hold. And that's what we said, okay, let's take the burden hand, let's get the deal done as quickly as we can.

我認為我們一直希望在租賃方面能夠快速發展，但我們說過，在這種環境下，我們可能需要更加重視。讓我們盡快扭轉租賃評論，讓我們盡快提出提案，因為您 - 整個三月份事情進展順利，而且他們沒有 - 當然沒有轉變，但有很多原因可以讓人們擱置事情。這就是我們所說的，好吧，讓我們承擔起這個負擔，盡快達成協議。

I think in terms of credit and things like that, we've held our standard. We haven't really thrown in more tenant improvements and things like that. That said, I would say you always have to realize, I won't even say just your market, but your submarket and what your competition is. I think, in Los Angeles, we would probably stretch a little more just that market still has negative absorption compared to Dallas, Houston, Orlando, Charlotte. There, we would probably stretch a little more to make a deal.

我認為在信用等方面，我們保持了自己的標準。我們實際上並沒有投入更多租戶改善之類的事情。話雖如此，我想說你必須始終意識到，我甚至不會只說你的市場，而是你的子市場和你的競爭對手是什麼。我認為，在洛杉磯，我們可能會做得更多一些，因為與達拉斯、休士頓、奧蘭多、夏洛特相比，這個市場仍然處於負面吸收狀態。在那裡，我們可能會付出更多努力來達成協議。

We don't want to make a bad deal, and the beauty of an industrial product, unlike some other sectors, our tenant improvements really are usually average about $1 per square foot per year of term and the majority of that -- 60% of that is commissioned. So that's where I like that our TI numbers are so much lower than other product types, and we're trying to be careful and get letters of credit and things like that. So, so far, we haven't -- it's been more about timing than terms, a long-winded way of saying.

我們不想做一筆糟糕的交易，工業產品的美妙之處在於，與其他一些行業不同，我們的租戶改善成本通常平均約為每平方英尺每年 1 美元，其中大部分（60%）是委託成本。所以我喜歡我們的 TI 數字比其他產品類型低得多，並且我們正在努力小心並獲得信用證等。所以，到目前為止，我們還沒有——這更多的是關於時間而不是條款，這是一種冗長的說法。

Craig Mailman, Citi.

花旗銀行的克雷格‧梅爾曼 (Craig Mailman)。

Dominguez building. I know you guys put that into redevelopment this quarter. Just kind of curious, was that always the plan to put in redevelopment after Starship left? Or was that because of some of the kind of commentary you were getting from some potential tenants there? And just what's embedded in guidance for the backfill of that building? I know you guys came in a couple of quarters ahead on Conn's. Just kind of curious what is embedded from a timing perspective for Starship?

多明格斯大廈。我知道你們本季將其投入了重建。只是有點好奇，這一直是 Starship 離開後重新開發的計劃嗎？或者是因為您從那裡的一些潛在租戶那裡得到了一些評論？那麼，關於建築物回填的指導意見中到底包含哪些內容呢？我知道你們比康恩領先了幾個季度。只是有點好奇從時間角度來看 Starship 嵌入了什麼？

Sure. I guess a little bit just the history on that building, and that will kind of lead me into the redevelopment. We acquired this building and it was in '96, and we were fortunate enough to have the same tenant in it through the end of 2020. So it got dated because it was a customs warehouse, port-related, heavy tenant active tenant use, maybe a better way to say it. We had it scheduled for a redevelopment in 2021.

當然。我想這棟建築的歷史會引導我重建。我們在 1996 年收購了這棟建築，我們很幸運，直到 2020 年底，我們仍然擁有同一位租戶。所以它過時了，因為它是一個海關倉庫，與港口相關，租戶活躍，也許是更好的說法。我們原計劃於 2021 年進行重新開發。

And if you remember, that was kind of when LA went bonkers right several months into COVID. Before we could start the redevelopment, Starship said, we'll take it as is, and we were able to negotiate minimal tenant improvements and a pretty big rent bump. And then when they went bankrupt or really got into trouble kind of starting last -- mid-last year and into bankruptcy. So we're putting in the sprinkler system is not more than you want to know, not ESFR, where it's, again, an active use, but we've had an asphalt truck.

如果你還記得的話，洛杉磯正值新冠疫情爆發幾個月後陷入瘋狂。Starship 表示，在開始重建之前，我們會維持現狀，我們能夠協商最低限度的租戶改善和相當大的租金上漲。然後他們就破產了，或者從去年年中開始陷入困境。因此，我們安裝的灑水系統並不比您想知道的更多，不是 ESFR，它再次被積極使用，但我們有一輛瀝青卡車。

So we're replacing that with concrete, really modernizing the building, motion sensor lighting, building a second office component, which really all of our buildings have so that it can be a multi-tenant building. So I would describe it as really 30 years of deferred TI that we're kind of now we have a chance to do. The good problem is it's always been leased. And then really our definition, which you may have seen the press release us and some of our peers in terms of redevelopment, all that, call it, rounding $8 million that we're putting into the building is thankfully more than 20% -- well in excess of 20% of our basis in it after 30 years. So that threw it into the redevelopment.

因此，我們用混凝土取代了它，真正實現了建築的現代化，採用了運動感測器照明，建造了第二個辦公部分，實際上我們所有的建築都有這個功能，這樣它就可以成為一個多租戶建築。因此，我會將其描述為真正 30 年的延期 TI，我們現在有機會做到這一點。好的問題是它一直被租賃。然後實際上是我們的定義，您可能已經看到了我們和一些同行在重建方面的新聞稿，所有這些，我們投入到該建築中的 800 萬美元幸運的是超過了 20% - 遠遠超過了我們 30 年後基礎的 20%。因此，我們決定重新開發它。

So hopefully, we can -- look, we've got several prospects. The activity has been good on this building. It's actually been better in the last, call it, 90 days than it's been kind of at any point in terms of re-leasing it. We've just probably, I won't say celebrate too early, but we think when you have a lease out and you're going back and forth with attorney's comments, but that's where both of the tenants -- and I get it, they're both importing from Asia have said we're going to wait two or three months. And look, I guess they'll -- I'm hoping they're waiting for headlines.

所以希望我們能夠——看，我們有幾個前景。這棟大樓的活動進行得很順利。事實上，就重新租賃而言，過去 90 天的情況比任何時候都要好。我們可能只是，我不會說慶祝得太早，但我們認為當你租出時，你會來回聽取律師的意見，但這就是兩個租戶 - 我明白，他們都從亞洲進口，他們說我們要等兩三個月。瞧，我猜他們會——我希望他們正在等待頭條新聞。

And as soon as they're comfortable with the environment, we've got several active prospects on the space that we can get it leased. That said, we won't be able to finish the improvements to the building. We don't have a truck court today. It will be probably July time frame when we think we can finish all the improvements. And then we -- I think in our budget, we've got it being leased several months after that.

一旦他們對環境感到滿意，我們就有幾位活躍的潛在客戶可以租用這個空間。話雖如此，我們還是無法完成建築的改進。今天我們沒有卡車法庭。我們認為大概要到七月才能完成所有改進。然後我們——我想在我們的預算中，我們會在幾個月後將其租賃出去。

So we've kind of like Conn's -- the big Conn's space. We thought we were getting ahead of this year's budget, but it's too early to tell on this one. I think we -- since it's in redevelopment, it's usually 12 months after we finished development or this is the first redevelopment we've done in about a decade that we were talking earlier internally.

所以我們有點像康恩的——大康恩的空間。我們原以為今年的預算已經超額完成，但現在下結論還為時過早。我認為我們——因為它處於重建階段，通常是在我們完成開發 12 個月後，或者這是我們大約十年來第一次進行重建，我們之前在內部討論過。

And hopefully, we can beat that year, and we'll pull it back in the operating portfolio. And that's been contemplated in our original budget that we've had this pent-up need to really modernize this building. And so in our original budget, we had it planned as a redevelopment. We had it planned in '21, and then we planned it again in '25.

希望我們能夠超越那一年，並將其拉回營運組合中。我們在最初的預算中已經考慮到了這一點，我們一直有對這座建築進行真正現代化改造的需求。因此，在我們最初的預算中，我們將其規劃為重建。我們在 21 年就制定了計劃，然後在 25 年又再次製定了計劃。

And just to be clear, Craig, if we got this question. So in our original first guidance back in February that Dominguez was not -- we did not have that included in the same store. So it was not something we changed from last guide to this guide in terms of how we were looking at that. So it didn't have a -- we had a 40 basis points increase in our same-store guide this time, but that was not any part of it in terms of how we're handling that. And as Marshall said, from a guidance standpoint, we're showing a tenant maybe occupy that building in fourth quarter. So we're not showing anything imminent there. Although we're marketing the space and they've got prospects, but from a budget standpoint, we're not showing anything happening there until late in the year.

克雷格，如果我們有這個問題，請先明確一點。因此，在我們 2 月最初的第一份指導意見中，Dominguez 並不在同一家商店中。因此，就我們看待這個問題的方式而言，我們並沒有從上一個指南改變為這個指南。所以這次我們的同店銷售額並沒有增加 40 個基點，但就我們如何處理這個問題而言，這並不是其中的一部分。正如馬歇爾所說，從指導的角度來看，我們表明租戶可能會在第四季度入住該建築。因此，我們沒有顯示任何即將發生的事情。儘管我們正在行銷該領域並且他們有前景，但從預算的角度來看，我們直到今年年底才會展示任何發生在那裡的事情。

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布、派珀·桑德勒。

So a question for you, Marshall. You guys talked about delaying the development starts until later in the year, which obviously reduces the overall amount you plan to start. But your comments on the leasing environment apart from LA seem pretty healthy. So my question is, what's really going on that's causing you to pull back on development starts?

馬歇爾，我想問你一個問題。你們談到將開發開始時間推遲到今年晚些時候，這顯然會減少你們計劃開始的總金額。但您對洛杉磯以外地區租賃環境的評價似乎相當健康。所以我的問題是，究竟發生了什麼事導致你們停止開發？

And from a tenant perspective, it doesn't sound like there's any real fear about tariffs. It sounds like the businesses are just sort of operating and whatever tariffs are going to happen, people just feel like they're going to manage it okay. Is that sort of the general takeaway? Or is this people want to see actual tariffs in place before they start adjusting their plans? I'm just trying to understand your comments on the overall healthy leasing environment apart from LA versus your pulling back on development when it would seem that your hand is strengthening there as your merchant builders have pulled back dramatically.

從租戶的角度來看，似乎他們並不真正擔心關稅。聽起來企業只是在正常運營，無論關稅如何，人們都覺得他們能夠妥善應對。這是普遍的看法嗎？或者人們希望先看到實際的關稅實施，然後再開始調整計劃？我只是想知道您對洛杉磯以外整體健康的租賃環境的評論，以及您在洛杉磯撤出開發的舉動，而由於您的商業建築商已大幅撤出，您似乎正在加強在那裡的影響力。

A fair question. I would say expectations, you're right. Four months into the year, things have gone as budgeted or a little ahead. So we're better off than we thought we would be. And ultimately, on our starts this year, I hope our kind of our new number, $250 million turns out to be low.

這是一個公平的問題。我想說的是期望，你是對的。今年已經過去四個月了，一切進展都符合預算，甚至略有提前。所以我們的情況比我們想像的還要好。最後，就我們今年的開局而言，我希望我們的新數字 2.5 億美元最終會偏低。

We'll go as fast as prospects lease space kind of in good or bad markets. We'll go as quickly as we can get the next building going. So -- but it was more with the uncertainty of tariffs, uncertainty of the likelihood of a recession increased and things like that, that you see in the news, we thought, all right, our starts are -- it probably could be one or two buildings to get to that $50 million, one or two , three projects. There's a good -- more than -- more chance that some of those get delayed than there was when our original budget. So in the field, we've not seen the pullback, and we may not.

無論市場好壞，我們都會盡快跟進潛在客戶的租賃空間。我們將盡快啟動下一棟建築。所以 — — 但更多的是由於關稅的不確定性、經濟衰退可能性的不確定性增加以及諸如此類的事情，你在新聞中看到，我們認為，好吧，我們的開始是 — — 可能需要一兩棟建築才能達到 5000 萬美元，一兩個、三個項目。與我們最初的預算相比，其中一些項目被推遲的可能性很高——甚至更大。因此，在該領域，我們還沒有看到回調，而且可能不會。

Either it could get resolved, it may not happen, but kind of expectations are that, I think, a number of prospects will the corporate will say, let's put decisions on hold for 30, 90 days, kind of like what happened to us in LA, and that could end up more likely than not that with nothing specific identified that, say, three of our developments get pushed into maybe first quarter of next year than in fourth quarter this year. But we'll go -- ultimately, we'll go as fast as the market allows. But it was really more just expectations than anything factual to date.

這個問題要么得到解決，要么就不會發生，但我認為，預計很多公司會說，讓我們將決定推遲 30 到 90 天，就像我們在洛杉磯發生的那樣，最終的結果很可能是，在沒有具體確定任何決定的情況下，我們的三個開發項目可能會被推遲到明年第一季度，而不是今年第四季度。但最終，我們會按照市場允許的速度繼續前進。但實際上，這只是預期，而不是迄今為止的事實。

John Kim, BMO Capital Markets.

蒙特利爾銀行資本市場 (BMO Capital Markets) 的 John Kim。

You talked about LA being weak. I wanted to ask about leasing spreads you had this quarter, which were 5% on a GAAP basis. I realize it might be a small sample size, but it does seem low in light of market rents that have increased around 30% over the last five years. So I was wondering if you're just being defensive, ultra-defensive in that market and if this will be representative of lease spreads going forward in this market?

您說洛杉磯很弱。我想詢問一下本季的租賃利差，根據 GAAP 計算，租賃利差為 5%。我知道這可能是一個小的樣本量，但考慮到過去五年市場租金上漲了約 30%，這個數字確實顯得偏低。所以我想知道您是否只是在該市場採取防禦性、超級防禦性措施，以及這是否代表了該市場未來的租賃利差？

I don't think it's representative, I think, of certainly Los Angeles, you're right. It's a -- we're about 5% of our NOI in LA and just didn't have many leases roll first quarter. So there is more embedded growth in our portfolio than that shows. That said, I would say Los Angeles is one of the few markets we're in where we've seen rents go backwards and where absorption is still negative.

我認為它不能代表洛杉磯，你是對的。這是——我們在洛杉磯的淨營業利潤率約為 5%，而且第一季的租約並不多。因此，我們的投資組合中蘊含的成長潛力比表面上顯示的要大。話雖如此，我想說洛杉磯是我們所處的少數幾個租金倒退且吸收量仍然為負的市場之一。

I think the numbers I saw were about for LA -- not Inland Empire, but LA, negative 2 million square feet of absorption, and that was the ninth consecutive quarter. So that's really an aberration to us where Dallas and Atlanta have multiple years of positive net absorption. So that market to me, doesn't feel like it's found its footing yet. But 5% is abnormally low.

我認為我看到的數字是關於洛杉磯的——不是內陸帝國，而是洛杉磯，吸收量為負 200 萬平方英尺，這是連續第九個季度。因此，這對我們來說確實是一個異常現象，達拉斯和亞特蘭大多年來一直保持正淨吸收量。所以對我來說，這個市場似乎還沒有站穩腳步。但5%卻異常低。

And I would expect, as the year plays out, that number will grow more in line with what you said, kind of depending on where -- how new -- how recent the leases that rolls that we'll do a little bit better on our re-leasing spreads in Los Angeles than first quarter, and it's really just kind of a statistically odd sample set.

而且我預計，隨著時間的推移，這個數字將會越來越符合你所說的，這取決於租賃合約的簽訂地點——租賃合約有多新——我們在洛杉磯的重新租賃利差會比第一季好一點，這實際上只是一種統計上奇怪的樣本集。

Vikram Malhotra, Mizuho House Securities.

Vikram Malhotra 的瑞穗證券。

So I just wanted to follow up on development. A couple of parts to it. Just one, can you give us a sense of like what you actually need to lease up this year to kind of hit the middle of the guide or even maybe the low end of the guide? Related to development, one of your peers talked a lot about build-to-suit activity picking up versus last year. And I'm wondering kind of what you're seeing in your markets on build-to-suit. And then just finally, on that development, you mentioned higher yields or higher -- or changing underwriting. Do you mind just giving us more color there?

所以我只是想跟進發展。它由幾個部分組成。只有一個問題，您能否告訴我們，今年您實際上需要租賃多少才能達到指南的中間水平，甚至是指南的低端？關於開發，您的一位同事多次談到與去年相比定制建造活動的回升。我很想知道你們在客製化生產市場上看到了什麼。最後，關於這一發展，您提到了更高的收益率或更高的收益率——或者改變承保。您介意給我們更多顏色嗎？

Yeah. I'll jump in, Vikram, on the first part. From a guide standpoint on development, really, as Marshall mentioned, not only did we take the development start number down a little bit. We also pushed the starts back in the year and really more just from a point of being conservative more so as Marshall said, if we can do it faster, we will. We're not making an arbitrary assessment of we're just going to delay.

是的。維克拉姆，我來談第一部分。從發展的指導角度來看，正如馬歇爾所提到的那樣，我們不僅稍微降低了開發啟動數量。我們也將今年的開工時間推遲了，實際上更多的是出於保守的考慮，正如馬歇爾所說，如果我們能做得更快，我們就會這麼做。我們不會武斷地做出判斷，我們只是要拖延。

It was just more of the uncertainty of just pushing that back some. To that vein, our lease-up of projects two , we pulled that back and pushed that back a little later in the year as well. So we have de minimis, almost no FFO or leasing income projected second and third quarter. And what we do have projected in the year is embedded in fourth quarter. So to your point of what would kind of have to take to -- for that to have impact and to lower from the midpoint, it would have to be something that would drag through the year and prevent us from getting tenants in a few spaces by fourth quarter.

這只是將事情推遲了一些，這帶來了更多的不確定性。出於這個原因，我們將二號項目的租賃計劃推遲到了今年稍後。因此，我們幾乎沒有預期第二季和第三季的 FFO 或租賃收入。我們對今年的預測是在第四季實現的。所以，正如您所說，需要採取什麼措施才能產生影響，並且從中點開始降低，這需要一些措施來拖延全年，並阻止我們在第四季度之前在幾個空間內獲得租戶。

So we hope that proves to be a conservative approach, but that's just what we -- where we stand at the moment. So we did soften both of those, and then I'll maybe let Marshall talk about the build-to-suit activity from that standpoint. Really for us, as we always have, Vikram, with our buildings and multi-tenant style development parks, build-to-suits are great when you can get them.

因此，我們希望這被證明是一種保守的方法，但這只是我們目前的立場。因此，我們確實軟化了這兩者，然後我可能會讓馬歇爾從這個角度來談談客製化活動。對我們來說，正如我們一直以來所做的那樣，維克拉姆，對於我們的建築和多租戶式開發園區來說，如果可以的話，客製化建造是很棒的。

But when you're building 100,000, 150000-square-foot building designed for two to four or five tenants, build-to-suits for us are more less frequent and certainly, we can have those opportunities, you like to remove the leasing risk. But for us, it's not something we're seeing an increase in interest in relative to the product type we offer.

但是，當您建造 100,000 到 150,000 平方英尺的建築，設計用於兩到四到五個租戶時，我們的客製化建造頻率就會降低，當然，我們可以有這些機會，您希望消除租賃風險。但對我們來說，相對於我們提供的產品類型而言，我們並沒有看到人們對它的興趣增加。

Ronald Kamdem, Morgan Stanley.

摩根士丹利的羅納德‧坎登 (Ronald Kamdem)。

Great. Just two -- quick two parter. Just staying on the development, just any sort of quick indication of how much construction costs have gone up and which parts and which pieces of it and what magnitude? And then the follow-up is just we've heard more utilization of space from 3PLs. Curious if you're seeing that as well? And any other sort of tenant bases that are utilizing their space more in this environment?

偉大的。僅兩個——快速的兩個部分。僅停留在開發階段，能否快速顯示建築成本上漲了多少、上漲了哪些部分、上漲了多少幅度？隨後我們聽說 3PL 的空間利用率有所提高。好奇您是否也看到了這一點？在這種環境下，還有哪些其他類型的租戶群體正在更多地利用他們的空間？

Ron, it's Marshall. Yeah, we're much more concerned about development demand and thankfully, construction costs have come down about 10% to 12% in the last year. And speaking with our construction team, so far, their anticipations we don't really use lumber. So that won't be a factor. That's one of the items that could potentially go up.

羅恩，我是馬歇爾。是的，我們更關注開發需求，值得慶幸的是，去年建築成本下降了約 10% 至 12%。與我們的施工團隊交談後，到目前為止，他們預計我們實際上不會使用木材。所以這不會成為一個因素。這是可能上漲的項目之一。

What we've heard is rebar, which obviously will use that in the concrete, maybe up about 10%, and storefronts where we'll have the aluminum storefront. So I think the flip side of that, which will help industrial developers is the construction pipeline is so low, and that's really across all product types. What we're hearing is the general contractors and the subs are so hungry for business and there's labor availability that there wasn't at the peak. So I think what impact we'll get from tariffs will be knock on wood, pretty minimal is the feedback we're hearing. Roofing materials are largely US based, things like that.

我們聽說鋼筋在混凝土中的使用量可能會增加 10% 左右，而店面則會採用鋁製店面。因此，我認為另一方面，這將有助於工業開發商，因為建造管道非常低，而且這實際上涉及所有產品類型。我們聽到的是，總承包商和分包商非常渴望業務，而且勞動力供應在高峰期是沒有的。所以我認為關稅對我們造成的影響將是微乎其微的，我們聽到的回饋是這種影響相當小。屋頂材料主要產自美國，諸如此類。

So I think our concern are much more about the numerator, the demand side than the denominator side in terms of the impact. And I don't -- I think in terms of utilization, probably the bigger the space, the more the tenants can invest in -- ultimately invest in the space and utilize it. Ours is oftentimes just such a fast throughput kind of that last mile delivery. So I don't know that our tenants specifically are utilizing their space much more. And I think that if anything, where it has been, it's been a pent-up demand that because of the economic uncertainty, a lot of our conversations over the last 12 to 18 months have been we'd like to expand, and I'm trying to get corporate to give me approval.

因此，我認為就影響而言，我們更關注分子、需求方，而不是分母方。我認為，就利用率而言，空間越大，租戶可以投資的就越多——最終投資空間並加以利用。我們通常採用這種快速吞吐量的最後一哩交付方式。所以我不知道我們的租戶是否具體地更多地利用了他們的空間。我認為，如果有什麼不同的話，那就是由於經濟的不確定性，存在一種被壓抑的需求，過去 12 到 18 個月裡，我們的許多談話都是我們希望擴張，我正在努力獲得公司的批准。

So that's probably in itself led to more intense utilization of their space. But what we're excited about if we can get that kind of clear runway like we had in fourth quarter and first quarter, you saw the leasing volume or how well our type buildings were kind of leasing. The 10 development leases that we've gotten signed year-to-date, including several of those were after April 2. So we're happy to see that volume. And I think it's there. We just need a little bit of a stable economy, and our model works really well is what the last two quarters have shown.

所以這本身可能就導致了他們對空間的更密集的利用。但是，如果我們能夠獲得像第四季度和第一季那樣的清晰跑道，我們會感到興奮，你會看到租賃量或我們類型的建築租賃情況如何。今年迄今為止，我們已經簽署了 10 份開發租約，其中有幾份是在 4 月 2 日之後簽署的。所以我們很高興看到這個數量。我認為它就在那裡。我們只需要一點穩定的經濟，而我們的模式確實運作良好，正如過去兩個季度所顯示的那樣。

Todd Thomas, KeyBanc Capital Markets.

托馬斯 (Todd Thomas)，KeyBanc 資本市場。

Marshall, you mentioned in your prepared remarks that you raised your threshold for new investments. And Brent, you touched on some of the changes you made to the outlook related to development starts, but curious if you can talk about acquisitions and provide an update around how you're thinking about return thresholds for acquisitions? And can you comment on whether you've seen any change in sellers' willingness to transact or any deals pulled from the market or any fallout related to some of the uncertainty here over the last few weeks?

馬歇爾，您在準備好的發言中提到，您提高了新投資的門檻。布倫特，您談到了對與開發開始相關的前景所做的某些改變，但您是否可以談談收購並提供關於您對收購回報門檻的看法的最新信息？您能否評論一下，在過去幾周里，您是否看到賣家的交易意願有任何變化，或者市場上是否有任何交易被撤出，或者是否出現了與這裡的一些不確定性相關的任何後果？

Todd, on acquisitions, kind of I guess -- again, it's only been a few weeks, but what we've done, there were a couple of projects. One, we were kind of in the last -- in rounding third on an acquisition. We hadn't been awarded it, but we were one of, I think, two or three. We were very open with the seller that given the change in capital markets that we were valuing it differently. So we ultimately which we never do, resubmitted our third offer at probably a 50 to 75 -- I'm trying to do it from memory, 50 basis points or so higher yield.

托德，關於收購，我想——再說一次，雖然才過了幾個星期，但我們已經完成了幾個項目。首先，我們在收購方面處於最後——排在第三。我們沒有獲得該獎項，但我想我們是其中兩到三家獲獎者之一。我們對賣家非常坦誠，考慮到資本市場的變化，我們對其的估值有所不同。因此，我們最終（我們從未這樣做過）重新提交了第三個報價，收益率大概是 50 到 75——我試著從記憶中得出，收益率高出 50 個基點左右。

That went ahead and went through. We were the only public bidder at that point. I don't want to violate our confidentiality agreement, but that one didn't retrade. But we've pulled back on a couple of acquisitions. We maintained our acquisition guidance in terms of volume at $150 million for the year, but we moved it to later in the year really.

事情就這樣繼續下去了。當時我們是唯一的公開競標者。我不想違反我們的保密協議，但那次沒有重新交易。但我們已經放棄了幾項收購。我們維持了今年 1.5 億美元的收購指導金額，但實際上我們將其推遲到了今年稍後。

And our thoughts were our own cost of capital has moved higher, and our ability to issue equity, that window closed. So we want to be very careful with our own capital. I'm glad we have the -- Brent and the team had the equity forwards raised, and our line of credit has nothing on it, but we're -- our access to capital suddenly changed in early April, and we want to be very prudent in how we use it. So we backed away from a couple of acquisitions. I hope I don't regret them later in the year, but at the time, we thought it was the right thing to do.

我們的想法是，我們自己的資本成本已經上升，而我們發行股票的能力已經關閉。因此，我們要非常謹慎地使用自己的資本。我很高興我們有——布倫特和團隊已經提高了股權遠期利率，我們的信用額度沒有任何變化，但我們的資本獲取管道在 4 月初突然發生了變化，我們希望非常謹慎地使用它。因此我們放棄了幾項收購。我希望今年晚些時候我不會後悔，但當時我們認為這是正確的做法。

One acquisition, I just heard that the sellers' expectations -- the two things we've heard. One was a 25 basis points increase in the cap rate they were expecting, which we didn't view that as enough to really pull us back into the bidding process on it, and we'll see where it ultimately -- and both of these were new and multi-tenant leased kind of EastGroup type properties, projects in existing markets.

一次收購，我剛剛聽說賣家的期望——我們聽到了兩件事。一是他們預期的資本化率將增加 25 個基點，我們認為這不足以真正讓我們重新回到競標過程中，我們將拭​​目以待最終結果——這兩個都是新的、多租戶租賃的 EastGroup 類型的房產，是現有市場中的項目。

And then I have heard from the brokers that there are several sellers that may shelve their listing and come back to market later. So I -- look, uncertainty is usually when we found our best opportunities, and it may not help this year's budget, but patience is usually rewarded. So we've just said, let's wait for -- both of these were good investments, but they weren't compelling enough given the environment.

然後我從經紀人那裡聽說，有幾個賣家可能會擱置他們的上市並稍後重返市場。所以我——看，不確定性通常是我們發現最佳機會的時候，它可能對今年的預算沒有幫助，但耐心通常會得到回報。所以我們剛才說，讓我們等待——這兩項都是很好的投資，但考慮到環境，它們的吸引力不夠。

So that's we've kind of said, let's be a little more comfortable before we break ground on the next development and be a little more enthusiastic about our -- not that we weren't enthusiastic, but we didn't think either of these were steels, we were just paying market for good properties long term. So we've backed away from a couple of things, and I've not really seen in the market it play out. One went through as priced, one, I'm hearing is moving back up 25 basis points. We'll see if the brokers call us back at an even better price next week, we'll see.

所以，我們可以說是，在開始下一個開發項目之前，讓我們更安心一些，對我們的產品更熱情一些——並不是說我們不熱情，而是我們不認​​為這些都是鋼材，我們只是在為長期的優質產品支付市場費用。因此，我們放棄了一些事情，而且我還沒有真正看到它在市場上發揮作用。一個按照定價通過，另一個，我聽說又上漲了 25 個基點。我們將看看下週經紀人是否會以更優惠的價格回電，我們拭目以待。

Omotayo Okusanya, Deutsche Bank.

Omotayo Okusanya，德意志銀行。

So I just wanted to stick on this topic of tariffs and the belief that maybe that kind of drives more manufacturing and things like that to happen within the US. Just kind of curious, just the whole idea of onshoring, how you kind of think about that? Whether you think that can actually be a reality this time around versus the last Trump administration where it was also potentially discussed, but we just didn't see a lot of onshoring activity?

所以我只是想堅持關稅這個話題，並且相信這也許會推動美國國內發生更多的製造業和類似的事情。只是有點好奇，對於整個在岸外包的想法，您是怎麼看待的？您是否認為這次這實際上有可能成為現實，而上屆川普政府也曾討論過這個問題，但我們只是沒有看到很多在岸活動？

One, questions I'm qualified to answer and questions are not. Look, I think the administration's goal is clearly to have more US based manufacturing. I hope that happens. If it does, it's good news for Eastgroup in a couple of ways. One, it will be a slow-moving train to build the factory and get the production in, but we've certainly seen it in places like Austin with Tesla, a lot of the green energy.

一、有些問題我有資格回答，有些問題我沒有資格回答。聽著，我認為政府的目標顯然是增加美國製造業。我希望這會發生。如果確實如此，那麼從幾個方面來說，這對 Eastgroup 來說都是好消息。首先，建造工廠和投入生產將會是一趟緩慢前進的列車，但我們確實在奧斯汀等地看到了特斯拉和大量綠色能源的身影。

Some of the -- we're servicing in Dallas, one of the semiconductor plants that are new, where I say it will help us probably twofold. There's a good chance those manufacturing plants will be in the Sunbelt market. they'll probably be in the Carolinas and Georgia, Texas, Arizona. It will probably more likelihood than in New England, typically or that's -- they haven't gone to California, things like that, and we'll pick up the supplier. We won't have the plant, but there's a good chance we'll have the supplier to the plant.

我們正在為達拉斯的一家新半導體工廠提供服務，我認為這將為我們帶來雙重幫助。這些製造廠很有可能位於陽光地帶市場。他們可能會在卡羅來納州、喬治亞州、德克薩斯州和亞利桑那州。這可能比在新英格蘭更有可能，通常或者那是 - 他們還沒有去過加利福尼亞之類的地方，我們會選擇供應商。我們沒有工廠，但很有可能有工廠的供應商。

So I hope that's true. And then the other thing that may be more likely than potentially onshoring, it seems like -- and again, this is outside of my -- well outside of my expertise, but that if you think who will be the trading partner that ultimately lose -- stands to lose the most would be China, and that's been the trend to China plus one manufacturing. I think Mexico will be a net winner of that. And we're certainly running from San Diego through Arizona and Texas have -- I like those markets in and of themselves. Phoenix is a good market that also happens to be near Mexico, same with Dallas and Austin.

所以我希望這是真的。然後，另一件比潛在的國內生產更有可能發生的事情似乎是——再說一次，這超出了我的——遠遠超出了我的專業知識範圍，但如果你想想誰將成為最終遭受損失的貿易夥伴——損失最大的將是中國，而這正是中國製造業發展的趨勢。我認為墨西哥將成為這場運動的贏家。我們當然會從聖地牙哥出發，途經亞利桑那州和德州——我喜歡這些市場本身。菲尼克斯是一個很好的市場，而且恰好靠近墨西哥，達拉斯和奧斯汀也是如此。

So I like that we're -- I think if we have nearshoring, we'll be a beneficiary in those markets, and they'll be fine with or without it. But I think -- look, I think it's coming. I think it will just be -- it's been coming. It's just been a slower play. We've seen El Paso there for several years where we were experiencing doubling of rents on our re-leasing. El Paso slowed down a little bit, but we were doubling rents in El Paso for two or three years for the first time in 15 or 20 years ever, as Brent just said.

所以我喜歡我們——我認為如果我們有近岸外包，我們將成為這些市場的受益者，無論有沒有近岸外包，他們都會感到滿意。但我認為——看，我認為它即將到來。我認為它將會——它已經到來了。這只是一場較慢的比賽。我們已經在埃爾帕索 (El Paso) 住了好幾年，當我們重新出租時，租金都翻了一番。埃爾帕索的成長速度略有放緩，但正如布倫特剛才所說，埃爾帕索的租金在兩三年內首次翻了一番，這是 15 年或 20 年來首次。

Mick Mueller, JPMorgan.

摩根大通的米克·穆​​爾勒。

Quick question on development. Are there any specific characteristics of the developments that you essentially took out of your start guidance versus the ones where you think you'll move ahead with sooner?

關於開發的快速問題。與您認為將很快推進的發展相比，您從開始指導中得出的發展是否有任何具體特徵？

Mike, it was more -- nothing specific. It was -- if you ask the field, probably development starts will be pretty similar to what they thought in our original budget. It was more -- look, especially if it's wrong, I won't pull Brent in. It was more our own unease over where the economy was heading and that we said, all right, look, it's probably going to -- it's probably not going to -- this cloudiness won't speed up development. It will slow it down.

麥克，沒什麼特別的。是的——如果你問這個領域，可能開發開始會與他們在我們最初的預算中所想的非常相似。更重要的是──你看，特別是如果它是錯的，我就不會把布倫特拉進來。這更多的是我們對經濟走向的不安，我們說，好吧，看，它可能會——它可能不會——這種陰雲不會加速發展。這會減慢速度。

So without any specific markets, we said, all right, maybe I could see maybe three projects around $50 million getting kicked down the can time-wise a little bit. It's not that they won't happen, they just may happen in 2026 rather than 2025. But if the tariff discussions get resolved more quickly, they could -- I could easily see us moving back to 300. The optimist in me could see us easily moving back to 300 or above wherever the market kind of as much as it lets us do.

因此，在沒有任何特定市場的情況下，我們說，好吧，也許我可以看到三個價值約 5,000 萬美元的項目在時間上被推遲。這並不是說它們不會發生，只是可能在 2026 年而不是 2025 年發生。但如果關稅討論能夠更快地解決，我可以很容易地看到我們回到 300。我內心的樂觀主義者可以看到，只要市場允許，我們就能輕鬆回到 300 或更高水準。

Got it. So a high-level change as opposed to just on the ground project changes basically?

知道了。那麼，這基本上是高層次的變革，而不是只是實際的專案變革？

Yeah. Nervous people at corporate, yeah.

是的。公司裡的人都很緊張，是的。

Rich Anderson, Wedbush.

里奇安德森，韋德布希。

So Marshall, you said at the outset, active prospects remain active, which is good, but perhaps hesitant. I'm wondering if you guys can draw any similarities to times in the past about how to manage the current situation? Because it seems to me if the concern is a recession, it doesn't appear like there is a building block for a deep recession to take place. So if there is this pull forward of demand scenario that like you've seen in the past during the early stages of the pandemic, are there similarities in terms of the cadence of how things might go from here that are guiding your decision tree? You mentioned reducing development, but you could turn that on pretty quickly in this space and in your world. So I'm just wondering how much you're looking at past periods to guide you in the future? That would be my question.

所以馬歇爾，你一開始就說，積極的前景仍然活躍，這是好的，但也許猶豫不決。我想知道你們是否可以將當前的情況與過去的情況進行比較？因為在我看來，如果擔心的是經濟衰退，似乎還沒有深度衰退的先兆。因此，如果出現這種需求提前的情景，就像您在過去的疫情初期所看到的那樣，那麼從現在開始事態發展的節奏方面是否存在相似之處，從而指導您的決策樹？您提到減少開發，但您可以在這個領域和您的世界中很快地實現這一點。所以我只是想知道您在多大程度上參考了過去的時期來指導您的未來？這就是我的問題。

I think this one is a little different to me and that when I think of COVID and the GFC or even way back when the tech bubble and some things, those were, to me, years in the making and weren't very quick fixes. This one feels suddenly hit and man-made. And so it could maybe go away just as quickly. If they announce trade agreements with a number of countries, this could dissipate more quickly than the subprime mortgage crisis or some things like that. And we're not -- I'm grateful we're very tenant diversified and close to the consumer and that we've -- in other meetings, we've reminded people, look, we've been in markets like Houston and Jacksonville for 30 years, but we're not near the port.

我認為這次對我來說有點不同，當我想到 COVID 和全球金融危機，甚至回到科技泡沫和一些事情時，對我來說，這些都是多年形成的，並不是很快就能解決的。這次感覺像是突然受到打擊並且是人為造成的。所以它也許很快就會消失。如果他們宣布與多個國家達成貿易協定，這可能會比次貸危機或類似事件更快消散。而且我們不是——我很慶幸我們的租戶非常多元化並且貼近消費者，而且我們——在其他會議上，我們提醒人們，看，我們已經在休斯頓和傑克遜維爾這樣的市場經營了 30 年，但我們並不靠近港口。

We may have missed some opportunities not being at the port, but we've always wanted to be near the consumer. So if it does affect us, it will affect us more in the -- more than global trade, that will be a recession. I like your optimism that you don't -- that the fundamentals aren't there. And you're right, our active prospects when I talk to the teams in the field, tariffs don't often come up in our conversations unless they've been watching our stock price or reading the Wall Street Journal, thankfully, today. So there's that dichotomy.

我們可能錯過了一些不在港口的機會，但我們一直希望能靠近消費者。因此，如果它確實影響到我們，那麼它對我們的影響將比全球貿易更大，那將是一場經濟衰退。我喜歡你的樂觀態度，你認為基本面不存在。你說得對，當我與現場團隊交談時，我們的活躍潛在客戶通常不會提及關稅，除非他們一直在關注我們的股價或閱讀《華爾街日報》，幸運的是，今天他們談到了這一點。所以就存在這種二分法。

This one does feel a little different. But we've said, really this year, we've talked to our own Board about capital markets. It's going to be -- the world seems so much more volatile. So when the window is there, let's either raise the equity or let's make sure we get the lease signed before the next tweet comes out or something in people's -- it does feel like when things get bad, they get bad in a hurry and they get improve gradually and get bad in a hurry. So we've said, let's get the lease signed.

這個確實感覺有點不同。但我們確實在今年與董事會討論了資本市場問題。這將是——世界似乎變得更加動盪。因此，當機會出現時，我們要么提高股權，要么確保在下一條推文發布之前簽署租約，或者在人們的某些事情中——感覺當事情變糟時，它們會很快變糟，然後逐漸改善，很快變糟。所以我們說，讓我們簽租約吧。

If you're comfortable with it, we don't have to negotiate to the degree of everything that's done is better than perfect sometimes. So that's kind of where we typically are, but that's what we've really emphasized with the team here in the last -- since April 2, done is better than perfect.

如果您對此感到滿意，我們不必進行談判，有時所做的一切都比完美更好。這就是我們通常的做法，但這也是自 4 月 2 日以來我們一直向團隊強調的，完成比完美更重要。

Yeah. I would just add to that, Rich, it's kind of like -- to use an analogy, kind of like a good recipe. You don't -- in markets like this, you don't doctor it. You just -- if you have a good recipe, you just execute it. And we've had a long track record of doing that.

是的。我只想補充一點，Rich，這有點像——打個比方，有點像一個好的食譜。在這樣的市場中，你無法對其進行操縱。你只要——如果你有一個好的食譜，你就只要執行它。我們長期以來一直這樣做。

So as Marshall said, in this -- you're just heightened awareness of executing what you do, again, a long track record of doing what we do. And as Marshall mentioned earlier, a lot of times in uncertainty, it can create maybe even opportunity. You get something disjointed and something breaks loose from someone else and so you keep your eyes open for those opportunities as well. But yes, we've got a long track record of -- and a great balance sheet to handle whatever comes our way. But I think it's just heightened awareness of executing and kind of sticking to the blocking and tackling of your core business, which we've had a long track record of doing.

因此，正如馬歇爾所說，在這一點上 — — 你只是提高了對執行你所做的事情的意識，再次強調，這是我們所做事情的長期記錄。正如馬歇爾之前提到的，很多時候不確定性甚至可以創造機會。你會發現一些脫節的東西，也有一些東西從別人那裡脫節出來，所以你也要留意這些機會。但是，是的，我們擁有長期的業績記錄和出色的資產負債表，可以應對我們遇到的任何問題。但我認為這只是提高了執行意識，並堅持阻止和解決核心業務，我們在這方面有著長期的記錄。

Michael Carroll, RBC Capital Markets.

麥可‧卡羅爾 (Michael Carroll)，加拿大皇家銀行資本市場。

Marshall, I wanted to follow up on your comments regarding the acquisition market and how you changed your underwriting or looked at an asset differently that caused you to increase the cap rates by 50 basis points. I mean can you provide us some details on how are you looking at that acquisition differently? I mean, did you change your cash flow assumptions? Or did you just increase your return hurdles just given the market uncertainty? I guess, how specifically are you looking at that differently now?

馬歇爾，我想跟進一下你關於收購市場的評論，以及你如何改變承保或以不同的方式看待資產，從而將資本化率提高了 50 個基點。我的意思是，您能否向我們提供一些細節，說明您對此次收購有何不同看法？我的意思是，你改變了你的現金流假設嗎？或者您是否僅僅因為市場不確定性而提高了回報門檻？我想，您現在對此有何不同的看法？

Yeah. That was -- and again, right or wrong, it was a newer asset, existing market leased -- credit -- I'll credit the sellers. They had a good project on the market. It was more our own access to capital. We've been able to use, Brent and the team, our ATM fairly regularly.

是的。不管對錯，這都是一項較新的資產，是現有市場租賃的，我會將信用歸功於賣家。他們在市場上有一個很好的項目。這更多是我們自己獲取資本的途徑。布倫特和團隊可以相當頻繁地使用我們的 ATM。

We knew that window was closed. We thought uncertainty, as Brent just mentioned, leads to opportunities. And we felt like this was a good but not a great investment. So we said, all right, what makes it a great investment and maybe not very creative, we thought 50 basis points, 60 basis points, a little bit lower price per square foot long term and a little better yield mark-to-market going forward. And again, the market -- we blinked maybe, but the market didn't.

我們知道那扇窗戶已經關閉了。正如布倫特剛才提到的，我們認為不確定性會帶來機會。我們覺得這是一項不錯的投資，但不是很好的投資。所以我們說，好吧，是什麼讓它成為一項偉大的投資，也許不是很有創意，我們認為 50 個基點、60 個基點，長期每平方英尺的價格稍微低一點，未來收益率按市價計算稍微好一點。再說一次，市場——我們可能眨眼了，但市場沒有。

It hasn't closed yet, but the market went forward. But it was really thinking let's be -- not that we're not always mindful of how we use our capital. But when that window is closed and also closed for the world for a little bit, that let's have that flexibility. There may be some opportunities coming, and this was a good but not great opportunity, and we kind of backed into in a quick manner, where do we think -- where do you feel like this becomes a compelling investment, not just a good investment.

還沒結束，但是市場已經開始前進了。但我們真正想的是——並不是說我們沒有時時刻刻注意如何使用我們的資本。但是，當這扇窗戶關閉，對世界也暫時關閉時，我們就擁有了這個彈性。可能會有一些機會出現，這是一個好機會，但不是很好，我們很快就回到了問題，我們認為這在哪裡——您覺得這會成為一個引人注目的投資，而不僅僅是一個好的投資。

Michael Griffin, Evercore ISI.

邁克爾·格里芬（Michael Griffin），Evercore ISI。

Just kind of curious your thoughts on sort of the tenant health environment. And I realize that you have a very diversified tenant base, but I imagine that if there are cost pressures on some of those maybe small and medium businesses that could be occupants of your facility, they could really feel maybe more of a squeeze on margins. So can you give us a sense, are you monitoring anything there? Is there anything we should kind of keep in mind from that tenant health perspective, particularly for that cohort of tenancy?

只是有點好奇您對租戶健康環境的看法。我知道你們的租戶群體非常多元化，但我想，如果那些可能成為你們設施租戶的中小型企業面臨成本壓力，他們可能會感受到更大的利潤空間。那你能告訴我們，你在那裡監視什麼嗎？從租戶健康角度來看，我們該記住什麼嗎，特別是針對那群租戶？

Yeah. And Griff, welcome aboard. Good to have you. Good to have you following us. We appreciate it. Our tenant collections, as I mentioned sort of in the prepared remarks begin, remains healthy. That said, we're still looking to be in that -- I think as I mentioned in the comments, that 40 basis points to 50 basis points of uncollectible rent relative to our overall revenues. That's just slightly ahead of sort of our historical average, a little bit below where we were for 2024. So first quarter was kind of running the way it has been lately. And as of now, we're not projecting much of a change in that.

是的。格里夫，歡迎加入。很高興有你。很高興您關注我們。我們對此表示感謝。正如我在準備好的演講中提到的那樣，我們的租戶收集情況仍然很好。話雖如此，我們仍然希望——我認為，正如我在評論中提到的那樣，相對於我們的總收入，40 個基點到 50 個基點的無法收回的租金。這略高於我們的歷史平均水平，略低於 2024 年的水平。因此，第一季的運作情況與最近的情況基本一致。截至目前，我們預計這種情況不會發生太大變化。

Someone asked me the other day about tenant health since April 2, like we haven't even had another rent check come due yet, like literally May rent isn't even do yet. So it's early. And to the extent that it might impact, we'll see. Our portfolio and our tenant base us being in the high-growth markets near the rooftops, we've tended to move more with the overall economy of the local metropolitan area and less with if container traffic slows coming in and out of Asia or somewhere else. So that would be to say, I think it would take more of a trickle through process and for the consumer ultimately to get hurt for it then to feel more into our portfolio if that were to happen.

前幾天有人問我自 4 月 2 日以來租戶的健康狀況，好像我們還沒有收到另一張租金支票，就像 5 月份的租金還沒有到賬一樣。所以還早。至於其影響程度如何，我們拭目以待。我們的投資組合和租戶基礎位於屋頂附近的高成長市場，我們傾向於更多地跟隨當地大都市區的整體經濟而移動，而較少受到進出亞洲或其他地方的貨櫃運輸放緩的影響。所以，也就是說，我認為這將需要一個更涓滴的過程，如果發生這種情況，消費者最終會因此受到傷害，然後才會對我們的產品組合產生更多感受。

But the tenant he is good. California last year was about 80% of our bad debt, in first quarter that was 50%. So still a more proportionate share relative to the group. But that said, just 7 tenants comprised almost 90% of the bad debt in the first quarter. So it still is a manageable figure and again, just maybe a slight uptick from historical averages, but first quarter was kind of the same cadence that we had experienced last year. So as of now, that's -- until we see something different on the ground, that's what we've dialed in, and that's what we're anticipating.

但這位房客是個好人。去年，加州的壞帳約占我們壞帳的 80%，第一季則為 50%。因此相對於該群體而言，其份額仍更為均衡。但話雖如此，光是 7 名租戶就佔了第一季壞帳的近 90%。因此，它仍然是一個可控的數字，並且可能只是比歷史平均略有上升，但第一季的節奏與我們去年經歷的節奏大致相同。所以截至目前，這就是——直到我們看到實地情況有所不同，這就是我們撥打的電話，這就是我們所期待的。

Vince Tibone, Green Street.

文斯提博內 (Vince Tibone)，綠街。

Can you discuss just how much additional development leasing that has not yet occurred is included within FFO guidance? Like how many cents is kind of speculative, if you will, from just additional stabilization of the lease-up pipeline?

您能否討論一下 FFO 指導中包含了多少尚未發生的額外開發租賃？如果您願意的話，僅從租賃管道的額外穩定中可以推測出多少美分？

Yeah. As I mentioned earlier, we've not put an exact number out there because, again, the leasing is fluid. And one of the reasons we -- Marshall mentioned, we've signed three leases since we even prepared the budget. Obviously, the budget gets prepared in advance of the documents going out. And so some of that has already been made its way through.

是的。正如我之前提到的，我們沒有給出確切的數字，因為租賃是不固定的。馬歇爾提到，我們這樣做的原因之一是，自從我們準備好預算以來，我們已經簽署了三份租約。顯然，預算是在文件發出之前準備好的。其中一些已經落實。

But it's more fourth quarter weighted. Hesitant to give a range, but it's more in that, I would say, $0.05 to $0.06 range total for the year in terms of spec amount that we would need to accomplish, again, back-end weighted. And some of that has taken place. So that's not a -- like I say, that's literally a spot number that can move week-to-week depending on leasing and what the assumptions are. But we did take that number down relative to what it was our last original guide in February.

但它更多地受到第四季度的影響。我不太願意給出一個範圍，但我想說的是，就我們需要完成的規格金額而言，今年的總額應該在 0.05 美元到 0.06 美元之間，同樣是後端加權。其中一些已經發生。所以這不是——就像我說的，這實際上是一個現貨數字，它會根據租賃和假設每週變動。但與二月的最新原始指南相比，我們確實降低了這個數字。

So we pushed it back and took it down. And just to put that in context, that's a pretty low figure for this time of year for us, given that we typically do just strictly spec development. And so that figure is lower than it would be in a typical year for us if we were ginning along at a little higher development pace.

所以我們把它推回去並取下來。就此而言，考慮到我們通常只進行嚴格的規格開發，這對我們今年的這個時候來說是一個相當低的數字。因此，如果我們以稍快一點的發展速度開始的話，這個數字會低於我們通常一年的數字。

Nick Thillman, Baird.

尼克·蒂爾曼，貝爾德。

Maybe just two quick ones. Brett, first on bad debt as a percentage of revenue for the first quarter, what's the exact number on that?

也許只是兩個簡單的問題。布雷特，首先請問第一季壞帳佔收入的百分比具體是多少？

The exact number for -- those sitting on the edge of their seats here, let's say, I've got it, it was 0.49%. And we're showing about 0.4 -- and we've got dialed in for the year about 0.45%. So as I mentioned, we're kind of depending on quarter. And the first quarter was obviously actual then the other three quarters are more, not tenant specific, but just placeholders. And like I say, I think we're showing -- I said 40 basis points, 50 basis points, and literally, I think 45 is what we're showing for the average for the year. So --

對於那些坐在這裡緊張的人來說，確切的數字是 0.49%。我們的數據顯示約為 0.4 - 而今年我們的撥入量約為 0.45%。正如我所提到的，我們有點依賴季度。第一季顯然是實際的，而其他三個季度則更多，不是特定於租戶的，而只是佔位符。就像我說的，我認為我們所顯示的是——我說的是 40 個基點、50 個基點，實際上，我認為 45 是我們今年的平均值。所以--

That's helpful. And then just last one, kind of on development yields. Obviously, in the supplemental numbers kind of went up. You commented a little bit on construction costs in certain markets coming down a little bit, but maybe talk about market rent growth dynamics you're kind of seeing in each of the markets, and what's driving sort of the yields between the cost versus just rate growth?

這很有幫助。最後一點，關於開發收益。顯然，補充數字有所上升。您評論說某些市場的建築成本略有下降，但也許您可以談談您在每個市場看到的市場租金成長動態，以及成本與利率成長之間的收益驅動因素是什麼？

Yeah. We were happy. I guess the developments that we've delivered, we were actually at a 9%, which was a good bit above what we had underwritten. One of those, the larger of the two was a pre-lease in San Antonio. So we were happy. We had a good land purchase. We had no carry because it got leased and it was -- was it one of a pre-lease or build-to-suit for that tenant. So happy to get those yields. They went up. It's really been more rent growth.

是的。我們很高興。我想，我們所實現的進展實際上達到了 9%，這比我們承保的要高出許多。其中較大的一個是在聖安東尼奧的預租房。所以我們很高興。我們買了一塊好土地。我們沒有持有，因為它已經被租出去了，而且它是預租的還是為租戶量身定制的。很高興獲得這些收益。他們上去了。租金確實增加了不少。

And I would say we were feeling pretty good about rent growth. It's awfully new now, but I'd say absent Southern California, probably inflationary. But -- and the optimist in me, when I look at how low the vacancy rate is, so we're about 3% vacant within Eastgroup's portfolio and our market, usually where there's kind of rule of thumb where there's vacancy in a market, the bigger the space, the higher the vacancy rate. Our -- 92% of our rents come from tenants under -- well maybe a couple of stats. 92% of our rents come from tenants 200,000 feet and below and 75% of our revenues come from tenants under 100,000 feet.

我想說我們對租金成長感覺相當良好。現在情況非常新，但我想說，如果沒有南加州，可能會導致通貨膨脹。但是 — — 我內心很樂觀，當我看到空置率如此之低時，Eastgroup 的投資組合和市場中的空置率約為 3%，通常，在市場空置的情況下，有一種經驗法則，空間越大，空置率越高。我們的 92% 租金來自租戶——也許有幾個統計數據。我們 92% 的租金來自 200,000 英尺及以下的租戶，75% 的收入來自 100,000 英尺以下的租戶。

And that's where the -- there's just such a low vacancy rate. It won't take a lot of stable demand to work through, call it, the 4% market vacancy, and there's just an empty pipeline that we're -- we think we'll have a real jump on -- especially on our private peers to get back into the development game. And you can -- we can deliver a building in 8 or 9 months.

這就是空置率如此之低的原因。解決所謂的 4% 市場空置率並不需要太多的穩定需求，而且還有一個空置的管道，我們認為我們將真正抓住這個機會，特別是讓我們的私人同行重新回到開發領域。而且我們可以在 8 到 9 個月內交付一棟建築。

So that's where we really get excited is when things do turn, and I've been predicting the turn way too early so far, but that I think we'll have a good runway of development coming out. And that will push rents and ramp up our development pretty quickly when and if we get there. We were certainly moving there the last six months, and we'll just see how this plays out in this near term. But so far, still so good so far.

所以當事情發生轉變時我們才會真正感到興奮，到目前為止，我對轉變的預測還為時過早，但我認為我們將擁有良好的發展前景。如果我們實現這一目標，這將推高租金並迅速促進我們的發展。過去六個月我們確實搬到了那裡，我們只是看看短期內情況會如何發展。但到目前為止，一切都還好。

Brendan Lynch, Barclays.

巴克萊銀行的布倫丹·林奇。

Marshall, you talked a bit about tenant diversity and low correlation of rent from individual tenants. How should we think about the correlation between customers serving similar end markets and how they will perform if we enter a recession?

馬歇爾，您談到了租戶多樣性和個體租戶租金的低相關性。我們應該如何看待服務類似終端市場的客戶之間的關聯，以及如果我們陷入經濟衰退，他們的表現將如何？

Yeah. I mean I think that's our fear is really not just as a recession and where it shakes out. I think the things that make me feel better, what we've said, I like our kind of defensive positioning that, thankfully, in a growing market, with a growing e-commerce component that that just -- those two in themselves are going to lead to more demand. And we also see within our tenant base kind of our tenants or that customer, part of their strategy is the faster and faster you can deliver, whether it's goods or services, that's where the market is going. So it's pushing all of our tenants to have that kind of hub-and-spoke last mile delivery.

是的。我的意思是，我認為我們真正擔心的不僅僅是經濟衰退及其後果。我認為讓我感覺更好的事情，我們所說的，我喜歡我們的那種防禦性定位，幸運的是，在一個不斷增長的市場中，隨著電子商務成分的不斷增長，這兩者本身就會帶來更多的需求。我們也看到，在我們的租戶群體中，無論是我們的租戶還是客戶，他們的策略之一就是越來越快地交付貨物或服務，這就是市場的發展方向。因此，它正在推動我們所有的租戶採用這種中心輻射式最後一哩配送方式。

So we like that in terms of just being a little more insulated than, say, port-related and things like that. But I do think, I like that we're down below 6% of our leases rolling for the balance of the year. We're 90% surrounded. We're around where we ended the quarter, still around 97% leased. So we feel pretty good about that. And as Brent mentioned earlier, bankruptcies, but it is that if the -- we're really consumer dependent. And if the consumer starts to really falter, it will -- our balance sheet is safe, but I worry out of 1,400 tenants, how many of them get pulled into that.

因此，我們喜歡這樣，因為它比港口相關等事物更加隔離。但我確實認為，我很高興我們今年餘下的租約滾動率降至 6% 以下。我們九成已經被包圍了。我們目前處於本季末的狀態，租賃率仍在 97% 左右。所以我們對此感覺很好。正如布倫特之前提到的，破產，但如果——我們真的依賴消費者。如果消費者真的開始動搖，我們的資產負債表是安全的，但我擔心在 1,400 名租戶中，有多少人會被捲入其中。

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布、派珀·桑德勒。

Just -- Marshall, just not necessarily your real-time leasing discussions, but just tenant conversations in general. As people contemplate all the different tariff headlines and reports that we're all reading, what are the tenants really saying about how they're thinking about their business? Meaning, are they concerned about simply costs going up? Or are tenants more concerned that their actual business may close or cut down? I'm just trying to understand, obviously, there's nervousness over is there a recession or not. But as your tenants think through about the ramifications, what is really their biggest concern? Is it more the cost of operating or that their actual business may be diminished?

只是－馬歇爾，不一定是您的即時租賃討論，而只是一般的租戶對話。當人們思考我們正在閱讀的所有不同的關稅標題和報告時，租戶們對他們的業務究竟有何看法？意思是，他們是否只擔心成本上漲？或者租戶更擔心他們的實際業務可能會關閉或減少？我只是想了解，顯然人們對於是否會出現經濟衰退感到緊張。但是當您的租戶仔細考慮後果時，他們真正最擔心的是什麼？是營運成本更高還是他們的實際業務可能會減少？

I don't think it's -- so far, thankfully, not. The tariff discussions are much more related -- I've kidded that the closer to New York you are, the more tariffs are in a conversation that it's been much more capital markets Wall Street than in our tenant conversations. And it's been more about, does the space work, what tenant improvements, negotiating terms. I was reading a list, a couple of your peers mentioned, our Tampa -- for example, our Tampa occupancy went down, and it's a handful of tenants. But when you look at what happened, it wasn't -- nothing was tariff related.

我認為不是——值得慶幸的是，到目前為止，還不是。關稅討論的相關性更強——我開玩笑說，你越接近紐約，談話中關於關稅的討論就越多，而且更多的是資本市場華爾街而不是我們與租戶的談話。更多的是有關空間是否實用、租戶需要做哪些改進、談判條款等。我正在閱讀一份名單，你們的幾位同事提到，例如我們的坦帕——我們的坦帕入住率下降了，租戶屈指可數。但當你看看發生的事情時，你會發現這根本與關稅無關。

It was one company got bought, one shut down US operations, things like that. It really wasn't. It was not tariff related. It's really making sure their business model works. And sometimes it's getting the right amount of square footage where they're debating how much square footage do we need. And that -- in this environment, that's what I've heard some of the brokers say that the tenant rep brokers every time we meet, the tenant tells me they need 20,000, 50,000, it's a moving target finding the right space. So it's been more that related than my costs are going to go up as a result of tariffs, if that's helpful.

一家公司被收購，一家公司關閉美國業務，諸如此類的事情。事實並非如此。這與關稅無關。這確實確保了他們的商業模式有效。有時他們會爭論我們需要多少平方英尺，以獲得正確的平方英尺數。而且 — — 在這種環境下，這就是我聽到一些經紀人說的，每次我們見面時，租戶代表經紀人都會告訴我，他們需要 20,000、50,000，找到合適的空間是一個移動的目標。因此，這更多的是因為我的成本會因為關稅而上漲，如果這有幫助的話。

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

Several of your peers ran a stress test analysis on their operating metrics to indicate whether a significant deterioration in fundamentals could still result in earnings within the guidance range. It does seem like you guys are in a more stable position than peers thus far. But I'm curious as to whether you went through a similar exercise. And if so, which metrics were stressed and by how much and kind of what the end result was?

您的幾位同行對其營運指標進行了壓力測試分析，以表明基本面的嚴重惡化是否仍可能導致盈利處於指導範圍內。到目前為止，你們的處境似乎比同行更加穩定。但我很好奇您是否也經歷過類似的練習。如果是的話，那麼強調的是哪些指標、強調的程度如何以及最終結果如何？

Yeah. We did, Blaine. We looked at that. We looked at occupancy. We looked at what if no more development leasing happens during the year, what if we don't have any more development, what if bad debt were to double? But then you get into, does that happen today? Does that happen August 1? Does that happen -- and we kind of -- as we were doing that, it kind of reminded us why we're not big on IRR models. The more you played with the different components, the more you played with them in dire situations, the worst the results were. So we looked at it.

是的。我們做到了，布萊恩。我們看了那個。我們查看了入住率。我們研究瞭如果一年內不再發生開發租賃會怎樣，如果我們不再進行開發會怎樣，如果壞帳翻倍會怎樣？但然後你就會想，今天會發生這種事嗎？那會發生在 8 月 1 日嗎？這種情況會發生嗎？我們有點——當我們這樣做的時候，它有點提醒我們為什麼我們不太重視 IRR 模型。你對不同組件的操作越多，在危急情況下操作它們的情況越多，結果就越糟糕。所以我們看了看。

We feel -- again, we feel good about where we are. Obviously, we not only reiterated guidance, but we actually bumped it $0.01 after a strong first quarter. So I don't really want to put numbers to it because it's so many variables. And obviously, like I say, even looking at something like bad debt or occupancy, okay, not only do you lose 200 basis points, but at what point do you begin to lose it?

我們再次感到，我們對目前的狀況感到滿意。顯然，我們不僅重申了指導意見，而且在第一季表現強勁之後，我們實際上將其提高了 0.01 美元。所以我真的不想用數字來表示它，因為它有太多的變數。顯然，就像我說的，即使看看壞帳或入住率之類的東西，好吧，你不僅會損失 200 個基點，而且從什麼時候開始損失呢？

As we sit here in April, we're one-third of the year, and we haven't lost it. So we looked at it, and it would take some serious stress to push us out of the low end of the range, let's just put it that way. And one-third into the year, we're not seeing or feeling that at the moment. And as you mentioned, we're, I think, a little bit more slightly insulated from that with our business type. And a reminder to our balance sheet, we're in a position where we hope to do things as we've talked about today, but we don't have to do anything, and we're in a very good position.

我們已經進入四月，一年已經過了三分之一，但我們並沒有失去它。因此，我們研究了一下，發現需要施加一些嚴重的壓力才能將我們推離該範圍的低端，我們就這麼說吧。今年已經過去三分之一了，但我們目前還沒有看到或感受到這一點。正如您所說，我認為我們的業務類型與此相比受到的影響較小。提醒一下我們的資產負債表，我們希望按照今天談到的方式做事，但我們不需要做任何事情，而且我們處於非常有利的位置。

So we stress tested it and more for our own internal. I would also mention that we continually stress test our cash flow as well. And it's not just happenstance that we had a good draw on the forward and our revolver available. We've always been looking at our needs for capital, and we've always looked 12 months out and to make sure if the -- even in good times, if the world stopped tomorrow, we couldn't raise another external dollar, we want to make sure that we've got our immediate cash needs taken care of for an extended period. And so we've always stress tested. We haven't always from an operations standpoint, but we did this quarter and feel good about where we are.

因此，我們對其進行了壓力測試，並進行了更多內部測試。我還要提到，我們也不斷對現金流進行壓力測試。而且，我們能夠很好地利用前鋒和左輪手槍，這並非偶然。我們始終關注我們的資金需求，始終著眼於 12 個月後的情況，以確保即使在經濟形勢良好的情況下，如果明天世界停止運轉，我們也無法再籌集到外部資金，我們希望確保我們的短期現金需求在較長時期內得到滿足。因此我們始終進行壓力測試。從營運的角度來看，我們並不總是這樣做，但本季我們確實這樣做了，並且對目前的狀況感到滿意。

There are no further questions at this time. Please proceed with closing remarks.

目前沒有其他問題。請繼續致結束語。

Thank you, everyone, for your time and your interest in Eastgroup. We hope we got your questions. If not, we're certainly a phone call or an e-mail away and look forward to, hopefully, there's a couple of conferences coming up here in the next month, six weeks, we see you there. So thanks for your time. Have a great day. Thank you.

感謝大家的時間和對 Eastgroup 的關注。我們希望我們已收到您的問題。如果沒有，我們當然會透過電話或電子郵件與您聯繫，並期待著，希望下個月或六週內在這裡舉行幾次會議，我們到時見。感謝您抽出時間。祝你有美好的一天。謝謝。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，並請您斷開線路。