Eastgroup Properties Inc (EGP) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen. And welcome to the EastGroup Properties second-quarter 2025 earnings conference call and webcast conference call. (Operator Instructions) This call is being recorded on Thursday, July 24, 2025. I will now hand over the call to Marshall Loeb, President and CEO, to begin the conference. Please go ahead.

女士們、先生們，早安。歡迎參加 EastGroup Properties 2025 年第二季財報電話會議和網路廣播電話會議。（操作員指示）此通話於 2025 年 7 月 24 日星期四錄製。我現在將電話交給總裁兼執行長馬歇爾·勒布，開始會議。請繼續。

Good morning, and thanks for calling in for our second-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 you listen to the following disclaimer.

早安，感謝您參加我們的 2025 年第二季電話會議。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 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，兩者均可在我們網站的「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，以獲取有關這些非 GAAP 財務指標的使用定義和更多信息，以及將它們與我們的 GAAP 結果進行調節。

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 of the company's plans, intentions, expectations, strategies and prospects based on the information currently available to the company and on assumptions it has made.

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，並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。

We undertake no duty to update such statements or remarks, whether as a result of new information, future or actual events or otherwise. 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.

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。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 this year, and we've made solid progress towards our 2025 goals, and I'm proud of the results we've achieved. Our second-quarter results demonstrate the quality of the portfolio and resiliency within the industrial market.

謝謝，凱西。早安.首先我要感謝我們的團隊。他們今年努力工作，我們朝著2025年的目標邁出了堅實的步伐，我為我們所取得的成果感到自豪。我們第二季的業績證明了投資組合的品質和工業市場的彈性。

Some of the results produced include funds from operations were $2.21 per share, up 7.8% for the quarter over prior year, excluding involuntary conversions. 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 97.1% with occupancy at 96%. Average quarterly occupancy was 95.9%, which although historically strong, is down 110 basis points from second-quarter 2024. Quarterly re-leasing spreads were 44% GAAP, 30% cash and year-to-date results are similar at 46% and 31% GAAP and cash, respectively.

產生的部分結果包括來自營運的資金為每股 2.21 美元，比上年同期增長 7.8%，不包括非自願轉換。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 97.1%，入住率為 96%。平均季度入住率為 95.9%，儘管歷史最高水平，但較 2024 年第二季度下降了 110 個基點。季度再租賃利差為 44% GAAP、30% 現金，年初至今的結果也類似，分別為 46% GAAP 和 31% 現金。

Cash same-store NOI rose 6.4% for the quarter despite the lower occupancy. Finally, we have the most diversified rent roll in our sector with our top 10 tenants falling to 6.9% of rents, down 90 basis points from last year. We target geographic and revenue diversity as strategic paths to stabilize earnings regardless of the economic environment. In summary, we're pleased with our midyear results. The tariff discussions raised market uncertainty towards long-term capital decisions.

儘管入住率較低，本季現金同店淨營業利潤仍上漲 6.4%。最後，我們擁有業內最多樣化的租金，前十大租戶的租金佔比下降至 6.9%，比去年下降了 90 個基點。無論經濟環境如何，我們都將地域和收入多元化作為穩定收益的策略途徑。總而言之，我們對年中業績感到滿意。關稅討論增加了市場對長期資本決策的不確定性。

To address the uncertainty, we're focusing on a couple of things. The first is leasing to maintain occupancy, and we're making the best quick leasing decisions we can. Today's environment likely won't be tomorrow's environment, literally. Secondly, we're grateful our balance sheet positions us well during volatile moments. This strength allowed us to invest $61 million in two new properties, raising our market ownership in Raleigh to roughly 600,000 square feet, all near the growing Research Triangle Park.

為了解決不確定性，我們將重點放在幾件事上。首先是透過租賃來維持入住率，我們正在盡可能快速地做出最佳的租賃決策。從字面上看，今天的環境可能不會是明天的環境。其次，我們很慶幸我們的資產負債表讓我們在動盪時期處於有利地位。這一優勢使我們能夠投資 6,100 萬美元購買兩處新房產，將我們在羅利的市場所有權提高到約 60 萬平方英尺，而且全部位於不斷發展的三角研究園附近。

In terms of leasing, second-quarter square footage slowed compared to the record-setting prior two quarters. In terms of total leases, however, the actual signed was greater during the quarter. As it played out, the market bifurcated such that we're continuing to convert prospects roughly 50,000 square feet and below and our larger spaces have prospects, but decision-making time is elongated, much like we experienced last year. That's impacting us in several ways. First, delaying expansions means the portfolio remains well leased and is ahead of initial forecast.

就租賃而言，第二季的租賃面積成長與創紀錄的前兩個季度相比有所放緩。然而，就租賃總額而言，本季實際簽訂的租賃合約數量更多。隨著情況的發展，市場出現了分化，我們繼續轉換大約 50,000 平方英尺及以下的潛在客戶，而我們更大的空間也有潛在客戶，但決策時間被延長了，就像我們去年經歷的那樣。這在很多方面對我們產生了影響。首先，推遲擴張意味著投資組合的租賃情況仍然良好，並且超出了最初的預測。

On the other hand, our development pipeline is leasing and maintaining projected yields, but at a slower pace. This, in turn, lowered development start projections from earlier in the year. And our starts, as we've stated before, are pulled by market demand within the park. Based on current demand levels, we're reforecasting 2025 starts to $215 million with a lean towards the back end of the year. We're making solid progress on development leasing.

另一方面，我們的開發案正在租賃並維持預期收益，但速度較慢。這反過來又降低了今年稍早的開發開工預測。正如我們之前所說，我們的啟動是受到公園內市場需求的推動。根據目前的需求水平，我們重新預測 2025 年的起始價將達到 2.15 億美元，並且傾向於在年底開始。我們在開發租賃方面正在取得紮實進展。

However, larger square footage decision-making is slower. Our emphasis is on forecasted expectations as our active prospects thankfully remain active and things can swing rapidly like they did late last year. In terms of starts, we ultimately follow demand on the ground to dictate pace. Longer term, the continued decline in the supply pipeline is promising. Starts were historically low again this quarter.

然而，面積較大的決策速度較慢。我們強調的是預測的預期，因為我們的活躍前景幸運地仍然活躍，而且事情可能會像去年年底那樣迅速變化。在開工方面，我們最終會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。本季開工率再次創歷史新低。

We expect the uncertainty to further dampen new starts near term. The limited availability and modern facilities will put upward pressure on rents as demand stabilizes. 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. Brent will now speak to several topics, including assumptions within our updated 2025 guidance.

我們預計這種不確定性將在短期內進一步抑制新開工。隨著需求穩定，有限的供應和現代化的設施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。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 second-quarter results reflect the terrific execution of our team, the solid overall performance of our operating portfolio and the continued success of our time-tested strategy. FFO per share for the quarter met the high end of our guidance range at $2.21 per share compared to $2.05 for the same quarter last year, an increase of 7.8%, excluding involuntary conversion gains. From a capital perspective, we took advantage of favorable equity pricing early in the year, which allowed us to enter the quarter with a reserve of outstanding forward shares agreements. During the quarter and after quarter end, we settled all of our outstanding forward shares agreements for gross proceeds of $194 million at an average price of $182 per share.

早安.我們第二季的業績反映了我們團隊的出色表現、我們營運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 達到我們指引範圍的高端，為每股 2.21 美元，而去年同期為 2.05 美元，不包括非自願轉換收益，成長 7.8%。從資本角度來看，我們利用了年初有利的股票定價，這使我們能夠在本季度進入未償還遠期股票協議儲備。在本季和季度末之後，我們以每股 182 美元的平均價格結算了所有未償還的遠期股票協議，總收益為 1.94 億美元。

Our guidance for the remainder of the year contemplates that we utilize our credit facilities, which currently have the full $675 million capacity available. Although capital markets are fluid, our balance sheet remains flexible and strong with near record financial metrics. Our debt to total market capitalization was 14.2%, unadjusted debt-to-EBITDA ratio 3.0x and our interest and fixed charge coverage increased to 16x. Looking forward, we estimate FFO guidance for the third quarter to be in the range of $2.22 to $2.30 per share with an average month-end occupancy range of 95.3% to 96.1%. For the year, we estimate FFO per share in a range of $8.89 to $9.03 with the midpoint up $0.02 per share from our prior guidance.

我們對今年剩餘時間的指導是利用我們的信貸額度，目前我們的信貸額度已達到 6.75 億美元。儘管資本市場瞬息萬變，但我們的資產負債表仍然保持靈活和強勁，財務指標接近歷史最高水準。我們的負債與總市值的比率為 14.2%，未調整的負債與 EBITDA 比率為 3.0 倍，我們的利息和固定費用覆蓋率增加到 16 倍。展望未來，我們預計第三季的 FFO 指引將在每股 2.22 美元至 2.30 美元之間，月末平均入住率為 95.3% 至 96.1%。對於今年，我們預計每股 FFO 將在 8.89 美元至 9.03 美元之間，中間值比我們之前的預期高出 0.02 美元。

Those midpoints represent increases of 6.1% and 7.3% compared to the prior year. Our revised guidance increases the midpoint for cash same-store growth by 20 basis points to 6.5% and decreases average occupancy by 10 basis points. The decrease is primarily due to the conversion of a few development projects prior to full occupancy. Considering the slower pace of development leasing, we reduced starts by $35 million. Our tenant collections remain healthy, and we continue to estimate uncollectible rents to be in the 35 to 45 basis point range as a percentage of revenues, slightly ahead of our historic run rate.

與前一年相比，這兩個中點分別成長了 6.1% 和 7.3%。我們修訂後的指引將現金同店成長中點提高 20 個基點至 6.5%，並將平均入住率降低 10 個基點。下降的主要原因是一些開發項目在完全入住之前進行了轉換。考慮到開發租賃的速度較慢，我們將啟動資金減少了 3500 萬美元。我們的租戶租金回收情況仍然良好，我們繼續估計無法收回的租金佔收入的比例在 35 至 45 個基點之間，略高於我們的歷史運作率。

In closing, we are pleased with the first half of the year, especially considering the continual macroeconomic uncertainty. 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. Now Marshall will make final comments.

最後，我們對今年上半年的表現感到滿意，特別是考慮到持續存在的宏觀經濟不確定性。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。現在馬歇爾將發表最後的評論。

Thanks, Brent. We're pleased with our execution year-to-date, putting us ahead of original expectations. Our management team has worked through periods of uncertainty before, and we're navigating our way through this turn as well. Regardless of the environment, our goals are to drive FFO per share growth and raise portfolio quality. If we do those, we'll continue creating NAV growth for our shareholders.

謝謝，布倫特。我們對今年迄今的執行情況感到滿意，超越了最初的預期。我們的管理團隊以前也經歷過不確定的時期，我們也正努力度過這個轉捩點。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。如果我們做到了這些，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 is benefiting from several long-term positive secular trends such as population migration, nearshoring and onshoring trends, evolving logistic 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 ever, and we're upgrading our diversity in both our tenant base as well as our geography. We'd now like to open up the call for your questions.

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，而且我們正在提升租戶基礎和地理的多樣性。我們現在願意開始回答大家的提問。

(Operator Instructions) Samir Khanal, BoA.

（操作員指示）Samir Khanal，BoA。

I guess, Marshall, thank you for the opening commentary. Maybe you can talk about theda cadence of leasing through the second quarter. And any you can provide in July as well, the first few weeks here, whether it's in your core portfolio or sort of the leasing on the development side?

馬歇爾，我想感謝你的開場評論。也許您可以談談第二季的租賃節奏。您還可以在 7 月份，也就是這裡的前幾週提供什麼信息，無論是在您的核心投資組合中，還是在開發方面的租賃中？

Okay. Sure. Samir, happy to be helpful. I think really, the first quarter and the tail end of last year were really strong, where a market pickup from where a lot. Most of 2024 was, I think the tariff news shot people, people seem to be maybe you get pushed back on your heels a little bit and maybe once the shock combination of the shot going away or more and more tariff agreements like we saw in Japan this week.

好的。當然。薩米爾，很高興能提供協助。我認為，去年第一季和年底的表現確實非常強勁，市場回升幅度很大。我認為，2024 年的大部分時間裡，關稅新聞都會給人們帶來衝擊，人們似乎可能會被稍微打退堂鼓，也許一旦衝擊消失，或者出現越來越多的關稅協議，就像我們本週在日本看到的那樣。

And every day, there's a new rumor about a next tariff agreement or new deadline. I think people are becoming a little bit more known to it or realizing they have to operate their business. So good news during second quarter, we continued signing. Our portfolio has stayed full. It's development leasing, as we mentioned, it's taken a little bit spa little bit longer, a little bit slower.

每天都有關於下一份關稅協議或新期限的新傳言。我認為人們對此越來越了解，或意識到他們必須經營自己的業務。因此，第二季的好消息讓我們繼續簽約。我們的投資組合一直保持充足。正如我們所提到的，這是開發租賃，它花費的時間稍微長一點，速度稍微慢一點。

And then even if you go through our development kind of the leases that are getting signed, it's the 50,000 feet and below. We've signed several development leases month to date. We have seen pick up like a number of -- a couple of our peers have mentioned a little bit June got a little better. July, maybe a little bit better still. But it's been that 30,000 to 50,000 square feet that are coming across the finish line and throughout it, we've got a full pipeline.

然後，即使你查看我們簽署的開發租約，也是 50,000 英尺及以下。本月迄今為止，我們已經簽署了幾份開發租約。我們看到了一些回升——我們的一些同行提到，六月的情況有所改善。七月，也許會好一點。但我們已經完成了 30,000 到 50,000 平方英尺的工程，在整個工程過程中，我們擁有完整的管道。

We have prospects for bigger spaces. It is just the decision-making time and I will add, we've been -- I guess the other thing that's been interesting in a negative way this year, I can think about close to a handful of times where we've had development leases out for signature where the tenants changed their minds. So that's typical that happens, but it's happened more frequently this year. Because the good news if I pull back, we're those prospects haven't -- it's not like we had changed our mind and we went to another building. They put decision-making on hold.

我們有更大空間的前景。現在只是決策時間，我想補充一下，我們——我想今年另一件有趣的負面事情是，我能想到的近幾次，我們簽訂了開發租約，但租戶改變了主意。這是很典型的情況，但今年發生得更頻繁了。因為好消息是，如果我退縮，我們的那些前景就沒有——這並不意味著我們改變了主意，去了另一棟大樓。他們暫停了決策。

We recently had another development lease where -- they haven't gone anywhere. We were close to lease signing and corporately, it's a national tenant they put things on hold. They put a freeze on new leases. So it's been a little bit frustrating with the tariff news. I think people are working there.

我們最近又簽訂了一份開發租約，但他們沒有去任何地方。我們當時就快要簽租約了，但從公司角度來說，因為是全國租戶，所以他們暫停了一切。他們凍結了新的租約。因此，關稅消息讓人有點沮喪。我認為有人在那裡工作。

I'm blaming it all on tariffs, are working their way through it. And it seems to be the markets falling, and we're watching it, and we'll go as fast as the market lets us go. The other thing, as we prepare, maybe one thing to note on our developments, we'll go in and build out we call it spec office.

我把這一切都歸咎於關稅，他們正在想辦法解決這個問題。看起來市場正在下跌，我們正在關注，市場讓我們走多快，我們就會走多快。另一件事，當我們準備的時候，也許有一件事需要注意我們的發展，我們將進入並建立我們稱之為規格辦公室。

So all of our vacancy has spec office. If things move or people are ready to move quickly other than a demising wall potentially, we can have tenants in very as quickly as they want to be in. And so we -- and not all of our competition does that. A lot of the private peers and things like that, they'll tailor the office.

所以我們所有的空房都有專用辦公室。如果情況有變，或者人們準備快速搬遷（除了可能的隔離牆），我們可以按照租戶的意願快速入住。因此，我們——而且並非所有競爭對手都這樣做。許多私人同行和諸如此類的人都會為辦公室量身定制。

So a lot of times, you'll get especially a 3PL or someone that wants to move in quickly. So it can turn quickly, which more quickly than I expected late last year. I was pleasantly surprised. And it feels like things are getting better, not dramatically but gradually better now.

因此很多時候，你會遇到特別是 3PL 或想要快速行動的人。所以它可以快速轉動，比我去年年底預期的要快。我感到很驚喜。感覺情況正在好轉，雖然不是急劇好轉，但正在逐漸好轉。

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

Just along those same lines, it looks though you're expecting a bit more downside to average month-end occupancy in the third quarter. Can you just talk about whether that's driven mainly by additional under lease development properties coming online during the quarter? Or whether there are any other significant factors? And maybe touch on the leasing activity at those projects that are coming into the portfolio with vacancy and maybe how much of that vacancy is in spaces over 50,000 square feet, which you noted to be a little slower.

同樣，您預計第三季月末平均入住率還會略有下降。您能否談談這是否主要受到本季上線的額外租賃開發物業的推動？或者是否還有其他重要因素？或許可以談談那些進入投資組合且有空置空間的項目的租賃活動，以及其中有多少空置空間位於 50,000 平方英尺以上，您注意到這些空間的租賃活動速度有點慢。

This is Brent. I'll take the first part of that and then let Marshall speak to leasing at the projects. But just to add some clarity, we had a few questions post release about a little bit of decrease in occupancy at your same-store increase. Help us sync that together. And I just want to point out, as Marshall, as we mentioned in our prepared comments, development conversions that aren't full occupancy are factored into that overall portfolio occupancy.

這是布倫特。我將談論第一部分，然後讓馬歇爾談論專案租賃問題。但為了更清楚地說明這一點，我們在發布後提出了一些問題，關於同店入住率略有下降的問題。幫助我們同步。我只想指出，正如馬歇爾在準備好的評論中提到的那樣，未完全入住的開發轉換被計入整體投資組合入住率。

So for example, third quarter, we put a footnote this time at the bottom of our guidance table showing a guide of 95.7% for the entire portfolio. But in the third quarter for same-store only, that's -- we're projecting 96.7%. So that's a 100 basis point difference. And again, that's being impacted. And we had a couple of projects second quarter.

例如，第三季度，我們這次在指導表的底部添加了一個腳註，顯示整個投資組合的指導率為 95.7%。但僅就第三季同店銷售額而言，我們預期成長率為 96.7%。因此，差異為 100 個基點。這再次受到了影響。我們第二季有幾個項目。

There are three that converted July 1, that's in that July figure and a few of those aren't even occupied to the extent they're leased, we're still getting tenants in. So that had the biggest impact for the last six months. we're showing same-store occupancy running about 90 basis points higher than the portfolio.

有三家商店在 7 月 1 日轉換，這是 7 月份的數據，其中一些商店的入住率甚至沒有達到出租的水平，我們仍在吸引租戶入住。因此，這對過去六個月產生了最大的影響。我們顯示同店入住率比投資組合高出約 90 個基點。

So you saw our midpoint same-store increase. That's a direct attribution to the 60 million square-foot operating portfolio doing very, very well and that's just being mitigated a little bit by the slower development leasing, which I'll just let Marshall touch kind of on how that's going at the project level.

所以你看到了我們的中點同店銷售額成長。這直接歸因於 6000 萬平方英尺的營運組合表現非常出色，而開發租賃速度較慢只是稍微緩解了這一影響，我將讓馬歇爾談談專案層面的進展。

Yes. And thanks, Brent. Blaine, the only color I would add, if it helps, it's typically, we'll say we build out pick 120,000-foot building, we may put spec office certainly in one corner of it and maybe on both ends. And so if someone wants to move in, you're ready, and it really just depends on how many bays in that building you want, and then we'll put the demising walls. So we'll build a 120,000 foot building that can probably accommodate up to typically four different tenants.

是的。謝謝你，布倫特。布萊恩，如果有幫助的話，我唯一想添加的顏色是，通常情況下，我們會說我們建造了一座 120,000 英尺的建築，我們可能會把規格辦公室放在它的一個角落，也許在兩端。因此，如果有人想搬進來，你就準備好了，這實際上取決於你想要那棟大樓有多少個隔間，然後我們會設置隔間牆。因此，我們將建造一座 120,000 英尺的建築，通常可以容納四個不同的租戶。

But it's not -- in a stronger market, it's not uncommon for one tenant to take the full building and then we're scrambling to deliver and build the next building. So they really aren't designed unless you get to the very end of what space is left, we can tailor it for whatever you need. It's -- remember someone describing it to me once it's a salami and we can cut it as pick or a spin as you want it, we're waiting for that demand. And as the building plays out, you work your way towards the middle of it.

但事實並非如此——在更強勁的市場中，一個租戶租下整棟大樓，然後我們爭先恐後地交付和建造下一棟建築的情況並不少見。因此，除非您用盡剩餘空間，否則它們實際上都不算設計完成，我們可以根據您的需求進行客製化。記得有人曾經向我描述過，一旦它變成義大利臘腸，我們就可以按照您的需求將其切成片或旋轉，我們正在等待這種需求。隨著建築物的展開，你會逐漸走向建築物的中心。

Craig Mailman, Citi.

花旗銀行的克雷格‧梅爾曼 (Craig Mailman)。

Marshall, maybe just sticking on the topic of leasing. Just a two-parter here. Just, I guess, number one, earlier in your prepared remarks, you had mentioned focusing more on occupancy and just getting deals done. Could you talk about how the mechanisms you're doing there? Is it concessions?

馬歇爾，也許只是堅持租這個話題。這裡只有兩個部分。我想，首先，在您之前準備好的發言中，您提到要更加關注入住率和完成交易。您能談談您在那裡採用的機制嗎？是優惠嗎？

And in what markets maybe are you seeing some elasticity to moving some of the economics around to spur demand? And then the other part of the question is just you had mentioned at the end of last year, you were surprised at how quickly the demand could turn on earlier to some of the other questions you had said that you've been frustrated that some deals are stalling at the finish line.

在哪些市場中，您可能會看到一些經濟彈性來刺激需求？然後問題的另一部分就是您在去年年底提到的，您對需求轉變的速度感到驚訝，之前您還提到過其他一些問題，您對一些交易在終點線上停滯感到沮喪。

So I'm just curious, as you look at your leasing pipeline, maybe if you could tranche it like how much of your leasing pipeline is in that really advanced stage to where if people just decide tomorrow to make that decision? How quickly those deals, like what magnitude could start to cross the finish line versus some deals that are earlier in the life cycle.

所以我很好奇，當您查看您的租賃管道時，也許您可以將其分成幾部分，例如您的租賃管道中有多少處於真正高級的階段，如果人們明天就決定做出這個決定？與生命週期早期的一些交易相比，這些交易的完成速度如何，例如規模如何，可以開始跨越終點線。

Sure. Craig happy, I guess, and make sure I cover all your points, if I missed one. But on -- in terms of leasing response, maybe as I think about it, as I mentioned earlier, we've had a couple of deals really get to the finish line and get put on hold by corporate or someone in the C-suite at the tenant. It's not that we're -- the good news is in our developments, when we look at -- and if you look at what's transferred over, we're getting mid-7s in terms of yields on what we're building and what we've transferred over -- it's not that we're having to drop -- we're not -- things aren't stalling over economics, broadly speaking. So we're maintaining or really beating our investment committee is on projects as they do ramp up.

當然。我想，克雷格會很高興，並確保我涵蓋了你所有的觀點，如果我遺漏了一個的話。但是，就租賃反應而言，也許正如我之前提到的那樣，我們已經有幾筆交易真正到了終點線，但被公司或租戶的高階主管擱置了。這並不是說我們——好消息是在我們的發展中，當你看——如果你看看轉移過來的東西，我們在建的和轉移過來的東西的收益率達到了 7% 左右——這並不是說我們必須放棄——我們不會——從廣義上講，事情並沒有因為經濟問題而停滯不前。因此，隨著專案不斷推進，我們維持或真正擊敗了我們的投資委員會。

Rents have been a little higher, and it's just taking longer to lease. But thankfully, it's not concessions. Maybe the exception, I would say to that is in California and especially in Los Angeles, where we've just had reading 10 consecutive negative quarters of absorption. So that market, people are getting pretty aggressive on rent and free rent and things like that. And that is one of the buildings where we've had leases out a couple of times or more and things kind of things stall there.

租金略高，租賃時間也更長。但值得慶幸的是，這並不是讓步。我想說的可能是例外，那就是加州，尤其是洛杉磯，我們剛剛讀到那裡連續 10 個季度的吸收量為負。因此，在那個市場上，人們對租金和免租金等事情變得非常積極。這是我們曾經多次出租的建築之一，但那裡的情況卻停滯不前。

It's really more in -- I think what we try to focus on is before the next political cycle headline comes out and someone at corporate puts the expansion on hold let's get comfortable and know where our TI rents work through the legal process, let's don't get hung up on an imminent domain clause or things that rarely ever come up and have it be legal difficulties and every deal has a shelf life. You can kill it. Let's go ahead and try to get things done quickly. But it's not so much. Look, our teams and our brokers that work with us know where the market is, and if something is market, let's try to get it signed quickly.

這實際上更重要的是——我認為我們試圖關注的是，在下一個政治週期頭條新聞出現之前，公司中的某個人暫停擴張，讓我們安心並通過法律程序了解我們的 TI 租金在哪裡發揮作用，讓我們不要糾結於迫在眉睫的域名條款或很少出現的事情，讓它成為法律困難，每筆交易都有保質期。你可以殺死它。讓我們繼續努力並儘快完成任務。但事實並非如此。你看，我們的團隊和與我們合作的經紀人知道市場在哪裡，如果某樣東西符合市場，我們就會設法盡快簽署。

In an upmarket, we heard about people waiting that 90 days later rents were going to be higher. So we're not going to lease up our development, and I'll take the volume, maybe I was just too chicken. We want to get the bird in hand because things can turn pretty quickly. And in terms of turning -- I was surprised, I kept hearing post election, people were waiting for the election and the brokers always have a reason why it's not leased, but it turned out fourth quarter was a record quarter for leasing square footage. And then Prologis made the same comment.

在高檔市場，我們聽說人們在等待，90 天後租金會上漲。所以我們不會出租我們的開發項目，我會承擔這個數量，也許我只是太膽小了。我們希望能夠迅速採取行動，因為情況可能很快就會改變。就轉變而言——我很驚訝，我一直聽到選舉後人們在等待選舉，經紀人總是有理由說為什麼不出租，但事實證明，第四季度是租賃面積創紀錄的一個季度。隨後普洛斯也發表了同樣的評論。

First quarter was our third best quarter in terms of our company's history in terms of leasing square footage. So I thought there would be more of a lag effect that people would feel comfortable and then leases would get signed. But really, fourth quarter, especially the end of fourth quarter, everybody's on the elections a weekend of November and the second half of December, whether it's the broker, the attorney, someone at the client is a way for the holidays understandably that that's usually a little bit slower. So it's hard to say. I think our pipeline has stayed full last year.

就租賃面積而言，第一季是我們公司歷史上表現第三好的季度。所以我認為會有更大的滯後效應，人們會感到舒服，然後就會簽租約。但實際上，第四季度，特別是第四季度末，每個人都在 11 月的周末和 12 月下半月參加選舉，無論是經紀人、律師還是客戶處的某個人，在假期期間，他們的工作通常會慢一些，這是可以理解的。所以很難說。我認為去年我們的管道一直處於滿載狀態。

It's pretty full again. We have a number of -- a few larger deals that are close to I hate to jinx us closer to the finish line that I'm hopeful of, but we've had we -- I thought we were in the eighth inning and we were back to the first inning. That's where it probably got overheated after COVID and now it feels like the pendulum has swung a little bit too far on the corporate concern. Again, I think tariffs were shocked to people. They wanted to see what was going to happen.

又變得很滿了。我們有許多——一些較大的交易即將完成，我不想給我們帶來厄運，我們很接近我希望的終點線，但我們已經——我以為我們已經進入了第八局，但我們又回到了第一局。這可能是新冠疫情之後經濟過熱的原因，現在感覺企業擔憂的鐘擺擺得有點太遠了。再次，我認為關稅讓人們感到震驚。他們想看看會發生什麼事。

Is inflation going to take off? If you think back to last quarter, a lot of the concern was have you stress tested your guidance for the low end. And that does -- 90 days later, that's at least listening to our peers and our call so far, that's not what's on people's minds. So I think people are kind of absorbed it, and that's maybe where that June and July has been a little better, and I'm optimistic that maybe August and September a little better still. And we'll try to -- again, on development starts, we have the land, and we'll have the permit in hand and really have the same construction groups that we work with.

通膨會爆發嗎？如果回想一下上個季度，許多擔憂都是您是否對低端指導進行了壓力測試。確實如此——90 天后，至少我們聽取了同行的意見，到目前為止，我們的呼籲並不是人們所想的。所以我認為人們已經吸收了它，也許六月和七月的情況會好一些，我樂觀地認為八月和九月的情況會更好一些。我們會盡力——再次強調，在開發開始時，我們有土地，我們有許可證，並且有與我們合作的相同的建築團隊。

We can move really quickly or as quickly as the market will let us to break ground on something and/or by having the space built out if -- and we've had a few of those where if somebody wants to be in 30, 45 days, we can get you in, we may or may not have a demising wall, but we can a lot of cases, put that in around you. So I think our pipeline is pretty well spaced out normally where summer, we've got -- we're trading paper. Some are leased out. Some of the leases are pretty far advanced. And really where it's gotten -- if you talk to our teams, when you get in the red zone is where things seem to move a little bit more elongated.

我們可以非常迅速地或按照市場允許的速度採取行動，破土動工，或者建造空間——我們有過這樣的經歷，如果有人想在 30 到 45 天內入住，我們可以讓你進去，我們可能有也可能沒有隔離牆，但在很多情況下，我們可以把它建在你周圍。所以我認為我們的管道分佈得很好，通常在夏天，我們有 - 我們正在交易紙張。有些已經出租了。有些租約已經相當成熟了。而事實上，如果你和我們的團隊交談，你就會知道，當你進入紅區時，事情似乎會變得更加漫長。

I say we have a letter of intent, the attorneys are working through the agreement. And that's where I get paranoid, if you're just waiting for that news that corporates put things on hold, and we're back to square 1 again.

我說我們有意向書，律師正在處理協議。這就是我變得偏執的地方，如果你只是在等待企業暫停一切的消息，我們又回到了原點。

Nick Thillman, Baird.

尼克·蒂爾曼，貝爾德。

Maybe just wanted to touch a little bit on the transaction activity and maybe some of the yields you're seeing and characteristics of the Raleigh assets in particular, but then also maybe touch a little bit on the increase in disposition guidance and kind of the assets you're looking to sell here in the second half of the year?

也許只是想稍微談談交易活動，也許您看到的一些收益率以及羅利資產的具體特徵，但也許還可以稍微談談處置指導的增加以及您希望在下半年出售的資產類型？

Sure. It's Marshall. Yes, we're excited. We entered Raleigh last year, and we bought that research triangle really between Raleigh, Chapel Hill, Durham, it's a pretty unique feature within that area in terms of the companies that are investing really hundreds of millions and billions of dollars into that research project. There's very low vacancy in that submarket.

當然。是馬歇爾。是的，我們很興奮。我們去年進入了羅利，並買下了位於羅利、教堂山和達勒姆之間的研究三角區，這是該地區一個相當獨特的地方，因為有很多公司為該研究項目投資了數億甚至數十億美元。此子市場的空置率非常低。

So we like it. And maybe as we think about where we're kind of moving our capital all to our dispositions into this, what we -- one trait we like is if you can get a state capital that has a large university presence, that university presence usually leads to technology jobs and higher income. And when things turn bad in a market like that, they usually -- those are great stabilizers. They're not -- the lows aren't as low in a market where the state capital and understandably in a university presence, the technology and then you get into topography challenges in a number of those markets. And when I say that you've seen us grow in Austin, International and now Raleigh, they all end up that way.

所以我們喜歡它。也許當我們思考如何將我們的資本全部投入到這一領域時，我們喜歡的一個特點是，如果你能找到一個擁有大量大學的州首府，那麼大學的存在通常會帶來技術工作和更高的收入。當市場情況變糟時，它們通常都是很好的穩定器。它們不是——在有州首府和大學存在、有技術並且在許多市場中面臨地形挑戰的市場中，低點並不低。當我說你們見證了我們在奧斯汀、國際和現在的羅利的成長時，它們最終都是以這種方式結束的。

And because of topography, those markets also ended up being pretty elongated they usually end up going -- wherever you can grow, those markets really get stretched out. So we like those attributes and are excited about -- and we've got some older markets that have really, I'd say, almost outgrown those traits like Phoenix and Atlanta, where you also have those, but those cities have gotten to be so large. So we like that in terms of dispositions and really the capital markets where -- on the Raleigh assets, I'll be I'll blend it and try to be a little bit careful because of our confidentiality agreements, but we're kind of, call it, low to mid-5s going in cash and then upper 5s in terms of net effective and really mark-to-market. So -- and they were brand-new assets, 1 delivered in '23, 1 in '24. So we we've not seen cap rates move.

而且由於地形的原因，這些市場最終也變得相當拉長——它們通常會延伸到——無論在哪裡發展，這些市場都會被拉長。所以我們喜歡這些特點，並且對此感到興奮——我們有一些老市場，我想說，它們幾乎已經超越了這些特點，比如鳳凰城和亞特蘭大，它們也具備這些特點，但這些城市已經變得如此之大。因此，就處置和真正的資本市場而言，我們喜歡這一點——對於羅利資產，我會對其進行混合，並儘量小心謹慎，因為我們有保密協議，但我們有點稱之為低到中等 5% 的現金，然後就淨有效和真正的按市價計價而言，則是高 5% 的現金。所以 — — 它們都是全新的資產，1 於 23 年交付，1 於 24 年交付。因此，我們沒有看到資本化率發生變化。

We saw development leasing slow a little bit in the second quarter because of the tariff news. We thought the acquisition market may get thrown a little bit sideways to date, the competition is held in there. So it's not a completely green light on acquisitions, but we're kind of working our way through. We're always looking at things more strategically or within existing submarkets and things like that. And maybe because of our stock price and the impact and the cap rates were holding up, you saw us last year, we've got some service center buildings that are our last ones, kind of flex buildings in Houston on the market, under contract, fingers crossed.

由於關稅消息的影響，我們發現第二季開發租賃有所放緩。我們認為，到目前為止，收購市場可能會有點偏離軌道，競爭仍在繼續。因此，這並不是對收購的完全批准，但我們正在努力。我們總是以更具策略性的角度或現有子市場等來看待事物。也許是因為我們的股價和影響力以及資本化率保持穩定，你去年看到我們，我們有一些服務中心大樓，這是我們最後的一些，是休斯頓市場上的一種彈性大樓，正在簽訂合同，祝我們好運。

Those will close their lease there's nothing wrong with them. They're just service centers, not distribution buildings. We sold a small building. You saw in the Bay Area that we got in a portfolio a few years ago, 12,000 feet. And we've talked about as we add in dots within our map like Raleigh and Nashville, some of the older, slower growth markets like a Jackson, New Orleans and Afrezno, California that I think as we move our investors' capital around, we'd like to get it in places where we think, one, our acquisitions are immediately accretive, and they're well positioned for long-term NAV growth.

那些人將會終止租約，這對他們來說沒有任何問題。它們只是服務中心，而不是配送大樓。我們賣掉了一棟小樓。您在灣區看到過，幾年前我們建立了一個投資組合，高度達 12,000 英尺。我們在地圖上添加點時也談到了羅利和納什維爾，還有一些較老、增長較慢的市場，比如傑克遜、新奧爾良和加利福尼亞州的阿夫雷茲諾，我認為，當我們轉移投資者的資本時，我們希望將其投入到我們認為的地方，首先，我們的收購可以立即增值，並且它們有利於長期的資產淨值增長。

And not that it's not there in Jackson, New Orleans and Fresno, but it will grow faster. And it's a good source of capital when the equity market is a little bit closed. We view that as an attractive source of capital. It's probably not accretive. What we're selling is older, we'll sell it at a slightly higher cap rate than what we're buying, but I think we should always be kind of pruning from the bottom of our portfolio and putting it where that capital has a better opportunity to grow.

並不是說傑克森、新奧爾良和弗雷斯諾沒有這種現象，只是它的發展速度會更快。當股票市場有點封閉時，它是一個很好的資金來源。我們認為這是一個有吸引力的資金來源。它可能不具有增值性。我們出售的是一些老舊的資產，我們會以比購買的資​​產略高的資本化率出售，但我認為我們應該始終從投資組合的底部進行精簡，並將其放在資本有更好的增長機會的地方。

Alex Goldfarb, Piper Sandler.

亞歷克斯·戈德法布、派珀·桑德勒。

Marshall, and as you look over the next sort of 12 to sort of 24 months, obviously, you guys have benefited as the industry has from the sharp COVID rent run-ups and you're still clipping, I think you said 30% cash rent re-leasing spreads. Over the next sort of 12 months, do you see those -- most of your markets still remaining pretty healthy on the re-leasing spreads? Or are we sort of getting to the tail end of that? And over that time period, we should start seeing like a dramatic slowdown in the re-leasing spreads. And maybe it breaks up geographically. So maybe certain markets are -- you're more concerned about those spreads coming in tightening sooner versus some of the other markets. But just looking for some color as we look over the next 12 months.

馬歇爾，展望未來 12 到 24 個月，顯然，你們已經從 COVID 租金的急劇上漲中受益，而且你們仍在削減，我想你們說過 30% 的現金租金轉租利差。在接下來的 12 個月內，您是否認為大多數市場的轉租利差仍將保持相當健康？或者說我們是不是已經到達這階段的尾聲了？在這段時間內，我們應該會看到再租賃利差急劇放緩。或許它會在地理上分裂。因此，也許某些市場——與其他一些市場相比，你更擔心這些利差會更快縮小。但當我們展望未來 12 個月時，我們只是想尋找一些色彩。

Alex, good question. And again, you're right, probably each market will be a little bit different on timing, but in essence of time, broadly speaking, you're right. We are two ways to think about. Yes, we're working our way through. We've still got at about 14%, 15% of our leases rolling per year, that COVID run-up, we've still got a fair amount of embedded rent growth that we're working through with thankfully within our portfolio, just by the nature of when our leases roll.

亞歷克斯，好問題。再說一次，您說得對，可能每個市場在時間上都會有點不同，但從時間的本質上來說，從廣義上講，您說得對。我們可以從兩個方面來思考。是的，我們正在努力。在新冠疫情期間，我們每年仍有大約 14% 到 15% 的租約滾動，幸運的是，我們的投資組合中仍有相當數量的嵌入式租金增長，這僅僅是由於租約滾動的性質造成的。

If I look out over the next -- and this is where you get end up, where I get a danger of economic forecasting 12 to 24 months, what I'm excited about for East Group and really for the industrial space, but especially where we fit in, in the shallow bay where if I use our quarter end numbers, and it's about where we are today, we're roughly 3% vacant, if you look, and it's in -- it's on our investor presentation about Page 10 or 12 there's about 4% vacancy and 200,000 square feet and below. The vacancy that's out there in Industrial is in the bigger box on the edge of town, not the infill shallow bay. So we're generally full. Our peers are generally full construction at a 10-, 11-year low. It's going to take a while.

如果我展望未來——這就是最終結果，也是我對 12 到 24 個月經濟預測的風險，我對 East Group 和工業領域感到興奮，尤其是我們所處的淺水灣地區，如果我使用我們的季度末數字，那就是我們今天的狀況，我們的空置率大約為 3%，如果你看一下——在我們的投資者第 10 頁或空置平方英尺及以下。工業區的空置面積位於城鎮邊緣較大的區域，而不是填充的淺水灣。所以我們通常都很飽。我們的同行的全面建設進度普遍處於 10 年、11 年來的最低水準。這需要一段時間。

We see how hard zoning is. So it wouldn't take much of a pickup in demand. I would anticipate in the next 12 to 24 months, there's going to be another period of pretty decent rent growth, where as things pick up, construction pricing, we're not there yet, but it should pick up as well as the economy improves, and it's going to be a scramble for people to add new product that I'm anticipating demand to pick up much more quickly than supply. We'll overbuild again, but demand is going to arrive much earlier than supply does. So as we work our way through our embedded growth, I'm more of an optimist.

我們知道分區是多麼困難。因此，需求不會大幅回升。我預計，在未來 12 到 24 個月內，租金將再次出現相當不錯的增長，隨著情況好轉，建築價格雖然還沒有上漲，但隨著經濟好轉，租金也會上漲，人們會爭相添加新產品，我預計需求的增長速度將遠遠快於供應。我們將再次出現過度建設，但需求將比供應更早到來。因此，當我們努力實現嵌入式成長時，我更加樂觀。

I don't see any secular reasons why I think industrial is just slowed down a little bit because of the headlines, but I don't see any secular reason why people onshoring, near-shoring, population migration, e-commerce, you name it, traffic in any of the cities we're in is bad and getting worse. Why our infill locations shouldn't be more valuable. We just need a little bit better headlines for a couple of months, and I think we'll be I think rent growth will pick up pretty quickly. So short term, we still have embedded growth. We're working our way through and then a little bit longer term, and I've been calling it too early for the last 12 months.

我沒有看到任何世俗的原因，為什麼我認為工業只是因為頭條新聞而有所放緩，但我也沒有看到任何世俗的原因，為什麼人們在岸、近岸遷移、人口遷移、電子商務，無論什麼，我們所在城市的交通狀況都很糟糕並且越來越糟。為什麼我們的填充位置不應該更有價值。我們只需要幾個月稍微好一點的頭條新聞，我認為租金成長將很快回升。因此從短期來看，我們仍然保持內在成長。我們正在努力實現這一目標，然後再製定一個更長遠的目標，但在過去 12 個月裡，我的預測為時過早。

But I think there's not much inventory out there when people come back to the store and are ready to transact. And so we'll be able to push rents and our development pipeline will -- which we really tailored to what the market is telling us. We've been as high as $400 million right now, we're closer to that $200 million level. But I think I would anticipate us getting back to $400 million fairly quickly, and that will stress Brent and his team out of how we fund all that, but we'll deal with that when it comes to.

但我認為，當人們回到商店並準備交易時，那裡的庫存並不多。因此，我們將能夠提高租金，並且我們的開發管道也將根據市場情況進行調整。現在我們的金額已經高達 4 億美元，我們更接近 2 億美元的水平。但我認為我們很快就會回到 4 億美元，這會給布倫特和他的團隊帶來壓力，讓他們不知道如何為所有這些提供資金，但我們會在需要的時候處理這個問題。

John Kim, BMO Capital Markets.

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

Maybe a question for Brent. You discussed using the credit facility more and that certainly makes sense. Your debt-to-EBITDA is below 3x now. But can you discuss how you view that the cost of that line in the back half of the year versus your cost of equity given they seem to be running top of each other right now?

這可能是對布倫特的一個問題。您討論了更多地使用信貸額度，這當然是有道理的。您的債務與 EBITDA 比率現在低於 3 倍。但是，鑑於目前它們似乎相互重疊，您能否討論一下您如何看待下半年該生產線的成本與股權成本？

Yes, that's a good observation. It's something that we really continuously monitor the -- we've monitored more frequently over the last 24 months. Our different various opportunities to acquire capital in various ways than we have in all the years prior. It's just been -- it's a fluid -- the markets are fluid, the 10-year up and down. We were very pleased to enter the second quarter with stockpile, what we viewed as the price in the first quarter, and it turned out to be that. We virtually liquidated all outstanding forwards for that $194 million at $1.82 a share, which we feel like it was really good execution.

是的，這是一個很好的觀察。這是我們真正持續監控的事情——在過去的 24 個月裡，我們的監控頻率更高了。與前幾年相比，我們擁有了更多以不同方式獲取資本的機會。市場瞬息萬變，十年來漲時跌。我們很高興進入第二季度，庫存量與第一季的價格持平，事實證明確實如此。我們實際上以每股 1.82 美元的價格清算了所有未償還的 1.94 億美元遠期合約，我們認為這是一個非常好的執行。

Yes, you're right. What we projected in the back half of the year at this point is utilizing that revolver, which is around that. It's variable, but it's based off [Seferin]. It's pretty stable. It doesn't move a lot, and it moves more in lockstep with rates or rate cuts, but we're around the low 5s, like 5.2-ish.

是的，你說得對。我們目前預計今年下半年將使用這種左輪手槍，大概就是這樣。它是可變的，但它是基於[塞弗林]。它非常穩定。它變動不大，而且更多地與利率或降息同步變動，但我們目前處於 5 左右的低位，例如 5.2 左右。

I won't get too detailed on how we view equity. But obviously, we look at that commensurate with consensus and relative to our earnings growth and our earnings per share and it's been priced below. You saw we just did a dab this quarter. The pricing pretty immediately went away from us in our view, and we had the forward stockpile, so we didn't need that immediate access. So yes, we've factored in utilizing our revolver for the first time in a while.

我不會太詳細地闡述我們如何看待公平。但顯然，我們認為這與市場共識相符，且相對於我們的獲利成長和每股盈餘而言，其定價一直低於預期。您看到我們本季只是做了一點嘗試。我們認為定價很快就離我們遠去了，而且我們還有遠期庫存，所以我們不需要立即獲得定價。所以是的，我們已經考慮過在一段時間內第一次使用左輪手槍。

We have the full capacity available. But look, that can change as soon as we've got a ton of capacity for debt. I mean we've gone sub-3 now on our debt EBITDA and we've had the good fortune of being patient, but (inaudible) as anything comes in line with what we feel like is a better opportunity, we will pull that lever and pivot as needed, but it's good to have all that cushion. And it's good that Marshall and the team continue to find value-creative opportunities to force to need capital. I mean they continue to fund strategic acquisitions.

我們擁有全部可用產能。但是，只要我們有了足夠的債務能力，這種情況就會改變。我的意思是，我們的債務 EBITDA 現在已低於 3，而且我們很幸運能夠保持耐心，但（聽不清楚）當任何事符合我們認為的更好機會時，我們將根據需要拉動槓桿並進行調整，但擁有所有這些緩衝總是好的。很高興看到馬歇爾和他的團隊不斷尋找創造價值的機會來滿足資本需求。我的意思是他們繼續資助策略性收購。

We continue to spend development dollars, albeit at a slower pace than we'd like. So we're pleased that we'll continue to be able to access funds that are accretive to our shareholders right out of the game.

我們繼續投入開發資金，儘管速度比我們希望的要慢。因此，我們很高興能夠繼續獲得能為股東帶來增值的資金。

When you feel comfortable as far as net debt to EBITDA, I mean, is the lower the better?

當您對淨債務與 EBITDA 之比感到滿意時，我的意思是，越低越好嗎？

I think it's important as a company to have a policy on the top side, where are you comfortable with sort of your max leverage. We've always said on a maximum basis, we wanted to maintain a 5% handle and ideally be sub-5%. We're obviously well below that. There isn't necessarily a floor as such. I mean for us, it's been about being opportunistic.

我認為，作為一家公司，制定最高政策非常重要，即您對最大槓桿率的承受能力如何。我們一直說，在最高限度上，我們希望維持 5% 的水平，理想情況下低於 5%。我們顯然遠低於這個水平。並不一定存在這樣的底線。我的意思是，對我們來說，這是一種機會主義。

And our shareholders have what I would view as kind of rewarded our good stewardship of our capital investment over the last couple of years, and we've had we kind of get lost for us for the trees. But we've had good access to equity for the most part of the past couple of years in this higher interest rate environment. And so by virtue of having that, we've driven our debt-to-EBITDA down more as a byproduct of that function rather than that being goal.

我認為，我們的股東對我們過去幾年對資本投資的良好管理給予了回報，而我們卻迷失在樹木之中。但在過去幾年的高利率環境下，我們大部分時間都能夠很好地獲得股權。因此，憑藉這一點，我們把債務與 EBITDA 之比降低了，這更多的是這項功能的副產品，而不是目標。

That being said, it would be terrific to unleash that runway in the future as we -- when we have better pricing on the debt side, and we can push that back up. So I guess, John, I'd say it's important. I think really important to have a ceiling of where your max leverage would be.

話雖如此，當我們在債務方面有更好的定價時，未來釋放這一潛力將是一件很棒的事情，我們可以將其推回原位。所以我想，約翰，我認為這很重要。我認為確定最大槓桿的上限非常重要。

But on the downside, it's when you have that opportunity to create that flexibility, it's nice to do it, and we certainly put ourselves in that position. And look, if equity rebounds and we can tap into it, we'll push it lower if that's the best opportunity. But at some point, debt is going to come.

但不利的一面是，當你有機會創造這種彈性時，這樣做是件好事，我們當然把自己放在這樣的位置。看看吧，如果股市反彈，我們可以利用它，如果這是最好的機會，我們就會將其壓低。但到了一定時候，債務就會出現。

This inversion has been way more elongated than I would have anticipated. But at some point, they're going to -- as you mentioned earlier, kind of getting on top of each other at some point, maybe it will go the other way and then well cost match or we'll just select what's best for us, and we've got a lot of flexibility to go either way.

這次倒置比我預期的要長得多。但在某種程度上，正如你之前提到的，他們會在某種程度上互相壓倒，也許會走另一條路，然後進行成本匹配，或者我們只選擇對我們最有利的，而且我們在選擇任何一條路時都有很大的靈活性。

Mike Mueller, JPMorgan.

摩根大通的麥克·穆勒。

(inaudible) like you controlled about 1,000 acres of land for development at quarter end, and you've definitely been adding to that. I guess, two questions tied to that. One, are you still expecting to be fairly active over the near term and kind of further supplementing that. And then are there any parts of the land bank that are more likely to be sitting for a while compared to some other parts of the bank?

（聽不清楚）就像您在季度末控制了大約 1,000 英畝的開發用地，而且您肯定一直在擴大開發面積。我想，有兩個問題與此相關。首先，您是否仍期望在短期內保持相當活躍並進一步補充這一點。那麼，與土地儲備庫的其他部分相比，哪些部分更有可能閒置一段時間？

There might be some -- Mike, it's Marshall. Good question. Some may be a little -- we kind of look -- really, the reality is look at it when you think it's kind of market-by-market and then especially within our land bank, we can have -- if you look at a market like Atlanta, we can have land on different sites or different parts of Atlanta. So you try to always about 1/3 historically of our development leasing is existing tenants. So we try to have that inventory handy.

可能有一些——麥克，是馬歇爾。好問題。有些人可能有點 - 我們有點看 - 真的，現實是當你認為它是逐個市場地看待它時，特別是在我們的土地儲備中，我們可以有 - 如果你看看像亞特蘭大這樣的市場，我們可以在亞特蘭大的不同地點或不同地區擁有土地。因此，從歷史上看，我們開發租賃的約 1/3 是現有租戶。因此，我們盡量將庫存備好。

We lost a tenant or two in Florida earlier in the year. We really did not have the development where we needed it to be. We backfilled the space thankfully, but that's where you end up with someone in a couple of different buildings and things like that, and that's not optimal for them. So we'll and it's always -- it's incredibly hard to find the land. You've seen us this year by land.

今年早些時候，我們在佛羅裡達州失去了一兩名租戶。我們確實沒有達到我們所需要的發展。值得慶幸的是，我們填補了空間，但最終你還是會發現有人在幾棟不同的建築物中工作，這對他們來說並不是最佳選擇。所以我們會——而且總是——找到土地是極其困難的。今年您已經在陸地上見過我們。

We've looked at all kinds of different, one was in an office building in Florida that we're going to demo. It's usually second-generation different type use. So it's a struggle to find land. Zoning has gotten harder up we've kind of called it the Amazon effect, where everybody wants to package delivered quickly, but no one wants it to originate in their neighborhood. So we've been -- it's harder to find good land sites in our markets than I think people realize.

我們研究過各種不同的情況，其中一個是我們將要展示的佛羅裡達州的一棟辦公大樓。通常是第二代不同類型的用途。因此尋找土地非常困難。分區變得越來越難，我們稱之為亞馬遜效應，每個人都希望包裹能夠快速送達，但沒有人希望包裹來自他們的鄰居。所以，我認為在我們的市場上找到好的土地比人們想像的還要困難。

And we kind of go through what submarkets and I'll stick with Atlanta and Atlanta, where in Atlanta do you want to be? And how do we have enough land available that we can keep accommodating either our neighbors growth or our own tenants growth. And so that's how we look at it. I'm sure there will be some markets like I think like San Antonio, we've got a good land bank there. It's not as fast growing market.

我們會研究哪些子市場，我會堅持亞特蘭大，你想在亞特蘭大的哪個地方發展？我們如何擁有足夠的土地來滿足鄰居或我們自己的租戶的成長需求。這就是我們的看法。我確信會有一些像聖安東尼奧這樣的市場，我們在那裡擁有良好的土地儲備。這不是一個快速成長的市場。

It's just not as deep as, say, in Dallas or Atlanta or a Phoenix or things like that, where it will take a little bit longer to work our way through it. But that said, we'll mix in different types of buildings, and you can work your way through the land fairly quickly, and then we get stressed of where are we going to find the next land in that market.

它只是沒有像達拉斯、亞特蘭大、菲尼克斯或類似的地方那麼深，我們需要花更長的時間來解決它。但話雖如此，我們會混合不同類型的建築，你可以相當快地在土地上工作，然後我們就會感到壓力，不知道在哪裡可以找到該市場的下一塊土地。

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 want to ask a similar question, I guess, related to the Raleigh acquisitions. I mean, how aggressive do you want to expand in Raleigh? And should we think about these recent acquisitions, more of a strategic way for East Group to get their foot in the market and you needed to do that before you can start buying land and building new assets in that Raleigh area?

馬歇爾，我想問一個類似的問題，我想問的是與羅利收購有關的問題。我的意思是，你想在羅利擴張到什​​麼程度？我們是否應該考慮這些最近的收購，這更像是 East Group 進入市場的一種戰略方式，而您需要在開始在羅利地區購買土地和建設新資產之前這樣做？

No, we like the market. Look, if -- and we'll be -- I always thought we don't have any set goals for anybody in our team to buy anything in Raleigh, none of their comp. And purposely, we don't do those things. If we find the right opportunity, we'll grow there, and it just worked out oddly enough that we had to opportunities and two opportunities, all kind of -- we picked that research triangle area. It's not only area, but things kind of turned out our way, and we were able to pick up a couple of acquisitions.

不，我們喜歡這個市場。你看，如果——我們會的——我一直認為我們沒有為團隊中的任何人在羅利購買任何東西設定任何目標，他們的公司也沒有。但我們故意不做這些事。如果我們找到正確的機會，我們就會在那裡發展，奇怪的是，我們有兩個機會，各種各樣的機會——我們選擇了那個研究三角區。這不僅是區域問題，而且事情似乎朝著我們想要的方向發展，我們能夠完成幾項收購。

I think some of it once you are active in a market, people take you more seriously and they know you're willing to commit. So maybe if things are close with the balance sheet status, thankfully that we've got, people know we're a legitimate buyer, and so you might get an award.

我認為，一旦你在市場上活躍起來，人們就會更加重視你，他們知道你願意做出承諾。因此，如果事情與資產負債表狀況接近，值得慶幸的是，我們已經得到了，人們知道我們是合法買家，所以你可能會得到獎勵。

But if we were the same size in Raleigh in two years, that would be okay. we certainly would look for development or even buying vacant buildings depending where we are in the cycle. I will say, typically, we'll enter market, usually, we'll miss out on the first few bids when we did in Raleigh, as well, and then we were able to get our first one last year, and it's a good way to learn the market.

但如果兩年後我們在羅利的規模與現在一樣，那就沒問題了。我們肯定會尋求開發，甚至購買空置建築，這取決於我們所處的周期階段。我想說，通常情況下，我們會進入市場，通常，當我們在羅利時，我們會錯過前幾個投標，然後我們去年就能夠得到第一個投標，這是了解市場的好方法。

And then when you've got a building or two that you've acquired. You've got some tenants rolling. You're building those broker relationships, you certainly feel more comfortable bidding on the next new investment, whether that's a building or land. So certainly, we'll look for land, but we don't -- and typically, once we're in a market, I will say, and we're there in Raleigh with the proximity to be self-managed. So typically, the numbers are about 1 million square feet.

然後當你擁有了一兩棟建築物。您已經有一些租戶了。您正在建立這些經紀人關係，您肯定會更放心地競標下一個新的投資，無論是建築物還是土地。所以，我們當然會尋找土地，但我們不會——通常，一旦我們進入市場，我會說，我們就在羅利，可以進行自我管理。通常，這個數字約為 100 萬平方英尺。

We can go to self-management, which is our preference in terms of managing our own customers there. And you just don't want to go to a market and only have 150,000 feet five years later, but we really don't set a timeline, and it felt like these more just good fortune fell into place more than I don't think we should stretch to say just because we're there, we need to justify the next acquisition or because you could end up -- we can do it, I just don't want to overpay for them just to pay a newcomer tax.

我們可以進行自我管理，這是我們管理自己的客戶方面的偏好。你肯定不想進入一個市場，五年後只剩下 15 萬英尺，但我們確實沒有設定時間表，感覺這些更多的只是好運降臨，我認為我們不應該誇大其詞地說只是因為我們在那裡，我們需要證明下一次收購是合理的，或者因為你最終可能會——我們可以做到，我只是不想為了支付新移民稅而多付錢。

Vikram Malhotra, Mizuho.

瑞穗的維克拉姆·馬洛特拉 (Vikram Malhotra)。

Just I guess, Marshall, two clarifications. So one, I guess, your peer -- one of your larger peer's suggested that at current US 7.5% vacancy. You probably don't see market rent growth for another year or so, maybe two years. And I'm wondering, specifically, can you give us some numbers like what sort of rent growth are you observing in your key markets? And then second, they also sort of suggested that tenants are ready to go or ready to sign.

馬歇爾，我猜有兩點需要澄清。因此，我猜，您的一位同行——您的一位較大的同行建議，目前美國的空置率為 7.5%。您可能在未來一年左右甚至兩年內都不會看到市場租金成長。我特別想知道，您能否提供我們一些數據，例如您在主要市場觀察到的租金成長情況如何？其次，他們也暗示租戶已準備好搬走或準備簽約。

They're much more comfortable with sort of the current degree of uncertainty they highlighted a very active build-to-suit pipeline. And so I'm just trying to get a sense of that versus what you're observing in your markets that sort of midsized box, 100,000 seeing slower decision-making. If you can just square those two things.

他們對當前的不確定性程度感到更加放心，他們強調了非常活躍的客製化管道。因此，我只是想了解這一點，與您在市場中觀察到的那種中型盒子相比，100,000 人的決策速度較慢。如果你能將這兩件事協調起來。

Yes. No, I can -- to speak for them. I would say we're nationally, maybe that's about right, vacancy 7.5%. We think it seems to have peaked and certainly construction and the starts have been down for about 10 quarters now, and -- but within our type space for memory, about -- I think the number is 88% of our revenue comes from tenants 200,000 feet and below. So that vacancy rate is closer to 4% than 7.5%.

是的。不，我可以──代表他們發言。我想說，就全國而言，空置率大概是 7.5%。我們認為它似乎已經達到頂峰，而且建築和開工量肯定已經下降了大約 10 個季度，並且 - 但在我們的記憶空間內，大約 - 我認為我們 88％ 的收入來自 200,000 英尺及以下的租戶。因此空置率更接近 4%，而不是 7.5%。

It historically runs lower. And we -- that's why we like kind of where we fit on the playground that there's not as much competition. The starts were a whole lot less. So we think our current rent growth is probably somewhere around inflation, 0% to 5%, depending on the market. It's hard to pick this year.

從歷史上看，這一數字較低。這就是為什麼我們喜歡在競爭不那麼激烈的操場上比賽。開始的次數少了很多。因此，我們認為目前的租金成長可能在通貨膨脹率附近，即 0% 到 5%，具體取決於市場。今年很難選擇。

And I think our rents will we should benefit in an economic recovery earlier than our peers because our vacancy rate is so much lower. And I also have heard people say, you want to market to be 5% vacant or lower for it to become a landlord market, we're already there today, and we're seeing good steady activity. It's just smaller spaces. We're seeing good conversion in smaller spaces, and we're seeing good activity kind of in all size spaces. It's just the conversion rate on some of those or the gestation period has gotten a little bit longer like it did last year.

我認為，由於我們的空置率低得多，我們的租金應該比同行更早從經濟復甦中受益。我也聽人說過，你希望市場空置率達到 5% 或更低，才能成為房東市場，我們今天已經達到了這個水平，而且我們看到了良好穩定的活動。只是空間較小而已。我們看到較小空間內的轉換率很好，我們也看到各種大小空間內的活動都很好。只是其中一些的轉換率或孕育期比去年稍長了一點。

So that's where -- and on the build-to-suit, we delivered one earlier this year. We'll do some of that. if we built the bigger buildings, look it's a business where you can make money and things that's really not -- usually people that want -- our average tenant size is 35,000 square feet in our portfolio. Our average building size is a little under 100,000 feet. We'll do a pre-lease building every once in a while, but it's really not our bread and butter.

這就是我們在今年稍早交付的客製化產品。我們會做一些。如果我們建造更大的建築，你看，這是一項可以賺錢的生意，而實際上並不是——通常是人們想要的——我們投資組合中的平均租戶面積為 35,000 平方英尺。我們的平均建築面積略低於 100,000 英尺。我們偶爾會進行預租建築，但這確實不是我們的主要業務。

And so I'm glad for them that they have that opportunity, but those are typically bigger buildings and larger capital decisions. I do agree that I think kind of moving from April 1 through today, people are getting more comfortable being uncomfortable that's probably what some of the comments that June was a little bit better than maybe April and May and July is holding up. And we think people kind of will get known to all the volatility and hopefully just get back to running their business. That's what we internally will typically try to do that. Look, we can't control the political settings and things like that.

所以我很高興他們有這樣的機會，但這些通常涉及更大的建築和更大的資本決策。我確實同意這一點，我認為從 4 月 1 日到今天，人們已經能夠更加適應不舒服的感覺，這可能是一些評論所說的 6 月份的情況比 4 月、5 月和 7 月份稍微好一點的原因。我們認為人們將會意識到所有的波動，並希望能夠重新開始經營他們的業務。這就是我們內部通常會嘗試做的事情。看，我們無法控制政治環境和諸如此類的事情。

We just need to go lease Suncoast building number 9, regardless of what's going on. And that's really what our teams and our company is trying to do. So I think things will settle out. And I think in a recovery, knock on wood, I think, will benefit more quickly than our peers because the vacancy rates and the starts are low, and those are simply just really -- it's easier to find a big box site on the west side of Phoenix than it is a shallow bay infill site and the East Valley of Phoenix.

無論發生什麼事，我們只需要租賃 Suncoast 9 號大樓。這正是我們的團隊和公司正在努力做的事情。所以我認為事情會解決的。我認為，在經濟復甦中，敲木頭，我認為，會比我們的同行更快地受益，因為空置率和開工率都很低，而這些只是真的——在鳳凰城西側找到一個大型場地比在淺灣填充場地和鳳凰城東谷更容易。

Michael Griffin, Evercore.

邁克爾·格里芬，Evercore。

Maybe just going back to the development pipeline for a bit. It seems with your commentary that expectations are for probably a longer lease-up time just given the uncertainty in decision-making there. Can you give us a sense when these projects were initially underwritten? Was it under the premise of getting some of those larger 50,000 square foot tenants that just aren't back yet? Could you try to maybe find more of those 20,000 to 40,000 square foot tenants to make up the difference? Or do you really need those larger space takers to come back to start that development pipeline engine rolling?

也許只是稍微回到開發流程。從您的評論來看，考慮到決策的不確定性，預期租賃時間可能會更長。您能告訴我們這些項目最初是什麼時候承保的嗎？這樣做的前提是否是吸引那些尚未回來的 50,000 平方英尺的大型租戶？您能否嘗試尋找更多面積為 20,000 至 40,000 平方英尺的租戶來彌補差額？或者您真的需要那些佔用更大空間的資源回來啟動開發管道引擎嗎？

It's Marshall. We'll -- even we'll always underwrite the project and assume a 12-month lease-up, and that's when they'll roll into the portfolio, is the sooner of 90% occupancy or 12 months after completion. And at the peak of the market, the early kind of 2020s, that was about a six- or seven-month period we were running through. And those bigger tenants were taking space, and that was really what was pulling the next land site off the shelf, and we were rolling through it pretty quickly.

是馬歇爾。我們甚至會始終承保該項目並假設 12 個月的租賃期，屆時它們將轉入投資組合，入住率達到 90% 或竣工後 12 個月（以較早者為準）。在市場巔峰時期，也就是 2020 年代初，我們經歷了大約六到七個月的時間。那些較大的租戶佔據了空間，這才是真正吸引下一塊土地的原因，我們很快就把這些土地用完了。

And the good news, even though kind of last year and this kind of recent time period of this year, we've kidded, we said we've gone from 6 to 16 months of lease-up, the good news is we've been able to maintain or even improve our yields over that time period. And it's just the buildings aren't -- they're not -- they're designed to be multi-tenant. And we're -- you're filling them up with 30,000-foot tenants, which is -- which works, it just takes longer to get that done than if somebody had taken 90,000 feet.

好消息是，儘管去年和今年最近一段時間，我們開玩笑說，我們的租賃期已經從 6 個月延長到了 16 個月，但好消息是，在這段時間內，我們能夠保持甚至提高我們的收益率。這些建築物並不是——它們不是——它們的設計目的是供多租戶使用的。而且我們 — — 你正在用 30,000 英尺的租戶來填充它們，這是 — — 這是可行的，只是比有人佔用 90,000 英尺要花更長的時間來完成。

I don't think it's any kind of permanent change. It's just -- those are -- when you think about bigger capital decisions for a company and it's not just with the 90,000 feet you're taking, you're probably also at either you're starting a new business or a lot of them expanding your business maybe from 50,000 feet.

我不認為這是任何永久性的改變。只是 — — 這些是 — — 當你考慮為一家公司做出更大的資本決策時，這不僅僅與你要佔據的 90,000 英尺的高度有關，你可能還在創辦一家新公司，或者很多人可能正在從 50,000 英尺的高度擴展你的業務。

So that's a lot more equipment they're buying and hiring and things like that. So that's where people are being maybe a little bit cautious in this environment given the headlines. It's taking on those bigger spaces. You could take on 30,000 or 40,000 square feet, and it's not as big a capital investment is taking on the bigger spaces. And I expect that to shift back to a more -- the pendulum will swing, it will be a more normalized environment.

因此，他們購買和租用的設備等等要多得多。因此，從新聞頭條來看，人們在這種環境下可能會有點謹慎。它佔據了更大的空間。您可以佔用 30,000 或 40,000 平方英尺的空間，而且所需的資本投資並不像佔用更大的空間那麼大。我希望情況能恢復正常，鐘擺會擺動，形成一個更正常化的環境。

But until it does, that's what -- that slowed our development leasing and look, I'll complement the team. That's why you've seen us bring our starts down both quarters this each time we've reported each quarter this year, look, we'll go fast or slow, and it's really listening to what the market will tell you. You've seen us buy they can buildings when our own development pipeline was moving quickly. And that's not something we've been looking at of late just because we're not seeing people at least on a bigger scale and make that be comfortable making those big decisions quite now quite yet. And that's why build-to-suit is such a high percentage of the starch right now, too, as people can't find that inventory or having to build it.

但在此之前，這減緩了我們的開發租賃速度，我會補充團隊。這就是為什麼你會看到我們今年每季的開工率每次都下降，你看，我們的發展速度會快或慢，這實際上是在聽取市場的反應。你已經看到，當我們自己的開發流程進展迅速時，我們卻買了他們可以建造的建築。而這並不是我們最近一直在關注的事情，因為我們還沒有看到至少在更大範圍內的人，並且讓他們能夠輕鬆地做出那些重大決定。這就是為什麼現在客製化生產佔據瞭如此高的比例，因為人們找不到庫存或不得不客製化生產。

Vince Tibone, Green Street.

文斯提博內 (Vince Tibone)，綠街。

You mentioned earlier that you potentially consider taking on leasing risk acquisitions. Are there many value-add opportunities on the market today? And curious to hear how leasing risk is being priced in the private market versus a more stabilized asset? Like what yield premium can you get to lease a vacant build (inaudible)

您之前提到過，您可能會考慮承擔租賃風險收購。現今市場上是否存在著許多增值機會？並且好奇地想知道私人市場與更穩定的資產相比租賃風險的定價如何？例如，租賃空置房屋可以獲得多少收益溢價（聽不清楚）

It's -- I'm not -- I apologize if I misspoke earlier. We've really shied away from, I guess, what we call leasing risk or value add we'll shift back to it when the new leasing as expansions are happening a little more rapidly. So we've actually, even earlier this week, we looked at something that was in an existing submarket. We know the seller is really -- as I said, there's really only one thing wrong with the building. And before we really even gotten to pricing, it's just not what we're looking.

這不是——我不是——如果我之前說錯了，我深感抱歉。我想，我們確實迴避了所謂的租賃風險或增值，當新的租賃擴張速度更快時，我們就會轉回它。因此，實際上，甚至在本週早些時候，我們就研究了現有子市場中的一些東西。我們知道賣家確實——正如我所說，這棟建築確實只有一個問題。在我們真正討論定價之前，它並不是我們所期望的。

You see us scaling our own development pipeline back to take on someone else's development pipeline right now. So we've not seriously gotten into those questions, but -- so it's a little bit alchemy. I don't know where we would shift to where that would look attractive. It's probably a good we usually say 150 basis points to over a market cap rate to justify new development. So to maybe take on a value add where the building is built, and we're taking the leasing on 75, 100 basis points, something like that, and we really have not seriously looked at anything.

您會看到，我們正在縮減自己的開發流程，以接手其他人的開發流程。所以我們還沒有認真探討這些問題，但是──這有點像煉金術。我不知道我們應該轉移到哪裡才會看起來有吸引力。這可能是一件好事，我們通常會說，超過市場資本化率 150 個基點，以證明新開發的合理性。因此，也許在建築物建造的地方增加價值，並且我們以 75、100 個基點等進行租賃，我們真的沒有認真考慮任何事情。

We've seen locations we like and buildings we like, but right now, it just -- because it's taking that 16-month period rather than 6, we'd rather go by what we're able to buy in the market with its lease that's new with below-market rents. We think that's a better risk reward proposition. And that will change in a couple of months, but that's kind of how we see it today.

我們已經看到了我們喜歡的地點和建築，​​但是現在，因為它需要 16 個月而不是 6 個月的時間，所以我們寧願按照我們在市場上能夠買到的低於市場租金的新租約來購買。我們認為這是一個更好的風險報酬主張。這種情況將在幾個月內發生變化，但這就是我們今天所看到的情況。

Ronald Kamdem, Morgan Stanley.

摩根士丹利的羅納德‧坎登 (Ronald Kamdem)。

Just really quickly a two-parter just one, starting with Southern California. I know you guys don't have most exposure as your peers, but I would just sort of love to hear what you're hearing on the ground in terms of activity, in terms of 3PL. And when you think about sort of that cash re-leasing spread, is this a market where we should be sort of bracing for is to slow down pretty quickly.

這只是兩部分，第一部分從南加州開始。我知道你們作為同行沒有太多的曝光度，但我很想聽聽你們在活動方面、在 3PL 方面聽到的情況。當您考慮現金再租賃利差時，我們是否應該為這個市場迅速放緩做好準備。

And then my quick follow-up to their opening comments, which were that the development pipeline leasing has slowed, which may I guess my question is, what's going to sort of -- is there a specific catalyst? Is it an election? Is it the last trade deal announced, that's going to get back to unlock? Or is this just time used to go by and we need to see how it goes?

然後我對他們的開場白進行了快速跟進，即開發管道租賃已經放緩，我想我的問題是，這將會產生什麼樣的影響 - 是否存在特定的催化劑？這是選舉嗎？這是宣布的最後一項貿易協定嗎？這將重新解鎖嗎？或者這只是時間的流逝，我們需要看看它進展如何？

Yes. Ron, I think on Southern California, it's more unique than markets I've seen after having done this for a while. And usually, what slows the market down as oversupply, and it's not oversupply. It's maybe in COVID, all the 3PLs took really fault, created some false demand and that bubbles pop, but for 10 consecutive quarters of negative absorption, and it was over 1 million square feet, L.A., Inland Empire was also negative absorption. We just need something to turn there.

是的。羅恩，我認為南加州比我做過一段時間後見過的市場更獨特。通常，市場放緩的原因是供應過剩，但事實並非如此。也許是在 COVID 期間，所有 3PL 都犯了錯誤，製造了一些虛假需求，導致泡沫破裂，但連續 10 個季度出現負吸收，面積超過 100 萬平方英尺，洛杉磯、內陸帝國也出現負吸收。我們只是需要一些東西來轉向那裡。

And until it turns, it's -- from our perspective, it's hard to predict market rents until you have at least kind of flat absorption. I think when there's negative demand in the market, we're spoiled and just not used to that. I mean I think Dallas has had close to consecutive quarters of file to absorption. I just read where Austin had its -- it wasn't a big number, but it's 44th month -- 44th quarter consecutive quarter of positive absorption. So for the Bay Area has been negative 7 of the last 9 quarters.

而在此之前，從我們的角度來看，除非你至少有某種程度的平穩吸收，否則很難預測市場租金。我認為，當市場出現負需求時，我們就會被寵壞，而且不習慣這種情況。我的意思是，我認為達拉斯已經連續幾個季度保持著強勁的吸收勢頭。我剛剛讀到奧斯汀的數據——雖然數字不大，但這是第 44 個月——連續第 44 個季度實現正吸收量。因此，灣區在過去 9 個季度中，有 7 個季度的利潤為負。

L.A. is 10 and counting. We'll see what this quarter holds. I know pork demand is down and things like that. So we're working hard to re-lease the building that's in -- that we're redeveloping there that we've owned, but we've also trying throwing out a bigger net of saying, look, we're willing to lease it or at the right price, we'll sell the building, too, if a user comes along or someone wants to.

洛杉磯已經 10 家了，而且還在增加。我們將拭目以待本季會發生什麼。我知道豬肉需求下降等等。因此，我們正在努力重新租賃我們擁有的、正在重新開發的建築，但我們也在嘗試拋出一張更大的網，說，看，我們願意租賃它，或者以合適的價格，如果有用戶來或有人願意，我們也會出售這棟建築。

It's just been -- it's a more tricky market. there, especially to see -- and then in terms of what turns -- I guess, to me, I felt this period of uncertainty was all man-made with tariffs. And I'm assuming it's some numbness to tariff news, which I think is where we're getting to and/or each week, there's maybe a new trade agreement reached and I think China seems to be the big one. Once you get there and people know what that certainty is, as Brent mentioned, at least you know the big beautiful bill is done. So at least there's some tax certainty for people to plan.

這只是——這是一個更棘手的市場。特別是看到——然後就轉變而言——我想，對我來說，我覺得這段不確定的時期都是人為的關稅造成的。我認為這是人們對關稅新聞有些麻木，我想這就是我們正在談論的，或者每周可能會達成一項新的貿易協定，而我認為中國似乎是其中最重要的一個。一旦你到達那裡，人們就知道了確定性是什麼，正如布倫特所提到的那樣，至少你知道這個美麗的大法案已經完成了。因此，至少人們在規劃稅收時會有一定的確定性。

There's Japan certainty now. And I think at some point, you'll reach more of a tipping point where people cumulatively decide it's safe to get in the water again. And when that happens, that's where I get excited about our low vacancy and the low vacancy. And I think given how long this downturn has taken not all, but a number of our private developer peers, it's going to take them a while to accumulate the land, get their capital stack ready, get their construction teams either rehired or reengaged that we'll have a good head start on a number of our peers because we already have those elements in place. And you're just -- I'm estimating what that catalyst is.

現在日本已經確定了。我認為在某個時候，你會達到一個臨界點，人們會一致認為再次下水是安全的。當這種情況發生時，我對我們的低空缺率和低空缺率感到興奮。我認為，考慮到這次經濟衰退持續的時間，並非所有私人開發商同行，但其中一部分同行，都需要一段時間來積累土地、準備好資本、重新僱用或重新聘用建築團隊，這樣我們才能比許多同行領先一步，因為我們已經具備了這些要素。而你只是——我正在估計那個催化劑是什麼。

And I'll admit, I've been I've called it, and I've been an economist calling for the economy to go up the wrong way for a while now, but I'll -- eventually, I'll be right, and I'll stick with it. And I think it will be as people get comfortable with tariff news.

我承認，我曾經說過，身為經濟學家，我一直認為經濟會朝著錯誤的方向發展，但最終我會是對的，我會堅持下去。我認為，隨著人們對關稅消息逐漸適應，情況就會如此。

Brendan Lynch, Barclays.

巴克萊銀行的布倫丹·林奇。

It sounds like most of your tenants are working through the macro challenges reasonably well. But can you give us an update on your watch list and how you're tracking versus your bad debt assumptions for the year?

聽起來您的大多數租戶都相當好地應對了宏觀挑戰。但是，您能否向我們介紹一下您的關註名單的最新情況，以及您今年的壞帳假設的追蹤情況？

Yes. Sure, Brendan. Yes, we continue -- our tenancy continues to be in good health. We've seen basically quarter-over-quarter, the same number of tenants on the active watch list. We were about basis points of bad debt in second quarter to revenue we're still trending lower than last year.

是的。當然，布倫丹。是的，我們繼續——我們的租賃狀況繼續良好。我們基本上看到，每個季度以來，活躍關註名單上的租戶數量保持不變。我們第二季的壞帳與營收之比約為基點，但仍低於去年同期。

We were a bit ahead of budget for the quarter relative to just the bad debt number, a spot number for second quarter. So we're still looking at that 35 to 45 basis points of revenue being the run rate we're using in the last 6-month guide. But I think the key number there is we didn't see -- like I said, we didn't see our number of tenant watch grow quarter-over-quarter, and you're talking maybe somewhere in the range of 30 out of over 1500 tenants or so.

相對於壞帳數字（第二季的現貨數字），我們本季的預算略有超出。因此，我們仍然將 35 至 45 個基點的收入視為過去 6 個月指南中使用的運作率。但我認為關鍵的數字是我們沒有看到——就像我說的，我們沒有看到我們的租戶觀察數量環比增長，而你說的可能是在 1500 多個租戶中大約有 30 個左右。

The common thread that we've been talking about for a while, it's down a little bit from last year. But California is still pretty much through six months of the year, California-based tenants representing about half of the bad debt so far. And it's still -- the actual bad debt is still being contained to a pretty small number of tenants.

我們一直在談論的一個共同點是，它比去年略有下降。但加州今年仍處於六個月的低迷期，到目前為止，加州租戶的壞帳約佔壞帳總額的一半。而且實際壞帳仍然只集中在極少數租戶身上。

I mean, the bad debt of what was it, $509,000 for the second quarter, 93% of that was just contained within five tenants. So few tenants having the impact. But all in all, we're very pleased with where that is and nothing outside the norm is really jumping out at us there, thankfully.

我的意思是，第二季的壞帳金額為 509,000 美元，其中 93% 僅來自五位租戶。受到衝擊的租戶太少了。但總而言之，我們對現狀非常滿意，值得慶幸的是，沒有什麼超出常規的事情真正引起我們的注意。

Ki Bin Kim, Truist.

Ki Bin Kim，Truist。

Just a couple of follow-ups here. On the balance sheet, with your leverage where it is, I was curious, Brent, besides the mask working out such that the cost of equity is not too far off near term versus the cost of debt. Are there any other major considerations that would make you lean towards maintaining a 3x levered balance sheet?

這裡僅有幾個後續問題。在資產負債表上，考慮到你的槓桿率，我很好奇，布倫特，除了掩蓋計算之外，股權成本與債務成本的短期差距並不太大。還有其他主要考慮因素會讓您傾向於維持 3 倍槓桿資產負債表嗎？

Ki Bin, it's something we just have to weigh. I mean, we certainly -- if all things being equal, if debt is more attractive to us in our evaluation at any given moment relative to equity, we're certainly willing to have that number come up. And in fact, we look forward to that coming up, meaning we're raising capital for the team to put to work. So we're continuing to monitor, keep it. I mean, they -- I'm pleased that they're tracking closer to 1 another.

Ki Bin，這是我們必須權衡的事情。我的意思是，我們當然——如果所有條件都相同，如果在任何特定時刻，債務相對於股權對我們的評估更有吸引力，我們當然願意提高這個數字。事實上，我們期待這一天的到來，這意味著我們正在為團隊籌集資金。因此我們會繼續監控並保持下去。我的意思是，他們——我很高興他們彼此之間的距離越來越近。

It's good to have more options than fewer. And so seeing that come in line more in line. It's something we're doing. And we look at all different avenues. We were looking at private placement, public debt, unsecured term loans, equities, the revolver, all different facets that we can keep track of.

選擇越多越好，選擇越少越好。因此，看到這一切變得更加一致。這是我們正在做的事情。我們研究了各種不同的途徑。我們正在研究私募、公共債務、無擔保定期貸款、股票、循環信貸以及我們可以追蹤的所有不同方面。

We do keep track of. But I say there's no magic in being near around that 3%. We certainly would grow, be comfortable raising that if given the opportunity. If all things being equal, kind of -- we've had a rule of thumb that's worked well that when equity is available, and if you like it, you get it. You'd rather get it when you -- when it's available and not put yourself in a situation where you've got to do something.

我們確實在跟踪。但我認為接近 3% 並沒有什麼神奇之處。如果有機會，我們肯定會成長，並且樂意提高這一點。如果所有條件都相同，那麼——我們有一條行之有效的經驗法則，那就是當有股權時，如果你喜歡它，你就可以得到它。你寧願在有空的時候就得到它，而不是讓自己陷入必須做某事的境地。

And so we're very, very pleased that operating the balance sheet that way has given us a lot of flexibility. So we'll still continue to look at it through those lens.

因此，我們非常高興以這種方式操作資產負債表為我們提供了極大的靈活性。所以我們仍將繼續透過這些視角來看待它。

Okay. And just last one for Marshall. I guess, any just high-level views, broad question on the bid-ask spreads for acquisitions. Do you feel like overall, you're getting paid for risk. And are those spreads -- bid as spread tightening to a reasonable level?

好的。這是馬歇爾的最後一句話。我想，任何高層觀點，關於收買賣價差的廣泛問題。您是否覺得整體而言，您因承擔風險而獲得了回報？這些價差－買入價差是否收窄至合理水準？

Ki Bin, I think we said there was a period of time when we felt like acquisitions were favorable in terms of the buyer versus the seller where we were getting the call where something didn't close and are you still interested. And that's what led us to implement Brent and the team the forward equity and things like that, and we were pretty active. It feels like the acquisition market now has gotten pretty efficient, and there's a number of bidders. I think the private bidders, certainly, when you're running an IRR, they probably look through the tariff news and cap rates have not really moved since April and, in fact, may have even gone down a little bit. It's hard to say exactly, but it feels a little bit tighter.

Ki Bin，我想我們說過，有一段時間我們覺得收購對買方和賣方有利，但我們接到電話說有些事情沒有完成，你還感興趣嗎？這就是促使我們向布倫特和團隊實施遠期股權和諸如此類的事情的原因，我們非常積極。感覺現在的收購市場已經變得相當高效，而且有很多競標者。我認為私人競標者在運行 IRR 時，他們可能會查看關稅新聞，而資本化率自 4 月以來並沒有真正變動，事實上，甚至可能有所下降。很難確切地說，但感覺有點緊。

That was part of our comfort level of raising our disposition guidance. And also, we said -- I mentioned earlier, we would consider selling our Dominguez building in L.A. that's under development. That's not in our guidance. So if we sold it, it would be on top of that.

這是我們提高處置指導的舒適度的一部分。而且，我們說過——我之前提到過，我們會考慮出售我們正在開發的位於洛杉磯的 Dominguez 大樓。這不在我們的指導範圍內。所以如果我們出售它，它的價格就會高於這個數字。

But because the acquisition -- or the disposition market has been pretty attractive. We view that and we like where our balance sheet is, but it's also a good source of capital if we can find the right strategic investments, whether they be an acquisition or development today.

但因為收購——或者處置市場相當有吸引力。我們看到了這一點，並且我們對我們的資產負債表現狀感到滿意，但如果我們能夠找到正確的策略投資，無論是收購還是開發，這也是一個很好的資金來源。

(Operator Instructions) Blaine Heck, Wells Fargo.

（操作員指示）布萊恩·赫克，富國銀行。

Really on the call, you mentioned the few development leases being signed in July. Just wondering if there's any way you can quantify that leasing progress you've made after the quarter or even put it in the context of how much of your FFO guidance is dependent on additional leasing at this point? I think last quarter, you mentioned $0.05 to $0.06.

實際上，在電話中，您提到了 7 月簽署的幾份開發租約。只是想知道您是否有辦法量化本季後所取得的租賃進度，或者甚至將其置於此時您的 FFO 指導中有多少依賴於額外租賃的背景下？我認為上個季度您提到了 0.05 美元到 0.06 美元。

Yes, thankfully, we're down, and Brent chime in. I think we're down -- look, we've got a lot of development leasing we're working on. Currently, in terms of that nickel, maybe when we were together in Charleston, that's down to about $0.01 at this point. So within our, call it, our $896 of FFO, we've got about $0.01 of development leasing still to go.

是的，謝天謝地，我們下來了，布倫特也附和。我認為我們處於劣勢——你看，我們正在進行大量的開發租賃。目前，就那 5 美分硬幣而言，也許當我們一起在查爾斯頓時，它已經降到了大約 0.01 美元。因此，在我們的 896 美元 FFO 中，我們仍有大約 0.01 美元的開發租賃未完成。

So thankfully, that numbers come down and look, we could -- depending on how the rest of the year plays out, we could end up having upside to that, I hope. In terms of leasing since quarter end, it's around the probably three leases and probably around -- and they're all again kind of smaller, that 100,000 feet in total.

所以值得慶幸的是，這些數字下降了，看起來，我們可以——取決於今年剩餘時間的表現，我希望我們最終可以獲得好處。就本季末以來的租賃情況而言，大概有三份租賃合同，而且它們都比較小，總共 100,000 英尺。

Omotayo Okusanya, Deutsche Bank.

Omotayo Okusanya，德意志銀行。

Just curious in terms of the full year occupancy guided and back half of '25, if there's any significant move out built into guidance? And along those lines, you talk a little bit just about the overall tenant loss list especially maybe some of the retail distribution tenant.

我只是好奇，就全年入住率指導和 25 年下半年而言，是否有任何重大的遷出包含在指導中？順著這個思路，您可以稍微談談整體租戶流失名單，尤其是一些零售分銷租戶。

Yes, I'll take that. Omotayo, good to talk to you. Yes, there's not thankfully any significant moves out move-outs dialed into the back half of the year. As I mentioned earlier, the actual same-store portfolio is running about anywhere from 80 to 100 basis points higher than the overall portfolio forecasted average for the last 6 months. And again, that's being driven by the conversion of developments prior to being fully occupied, weighing down on the overall portfolio average.

是的，我接受。Omotayo，很高興與您交談。是的，值得慶幸的是，今年下半年沒有任何重大的搬遷事件。正如我之前提到的，實際同店投資組合比過去 6 個月的整體投資組合預測平均值高出 80 到 100 個基點。再次，這是由開發項目在完全入住之前轉換而來的，從而拖累了整體投資組合的平均值。

So there's no known move-outs. We've got our remaining rollover for the year down to a pretty de minimis amount. I think we're down in the 4% range or something like that for the year. So that part of it feels good. The operating portfolio we upped the midpoint all of that feels well. And then I'm trying to remember what was your second part or second part of the question Omotayo?

因此沒有已知的搬離情況。我們已將今年剩餘的展期金額降至最低。我認為今年的降幅在 4% 左右。所以這部分感覺很好。我們提高了營運組合的中點，這一切感覺很好。然後我試著回想一下 Omotayo 問題的第二部分是什麼？

All right. Then your tenant watch list, especially maybe anything on the retail front.

好的。然後是您的租戶觀察名單，尤其是零售方面的任何東西。

The watch list has remained steady. And if there's any common theme within it, it would be a bit 3PL oriented, a bit California-oriented. But again, we're running below the run rate last year, and we're still using that -- we're only 30 basis points second quarter. We're using about a 35 to 45 basis point run rate for the last 6 months of the year, and we hope that proves to be conservative. but time will tell.

觀察名單保持穩定。如果其中有任何共同的主題，那麼它有點以第三方物流為導向，有點以加州為導向。但同樣，我們的運行率低於去年的運行率，而且我們仍在使用這個數字——第二季度我們的運行率僅為 30 個基點。我們在今年最後 6 個月使用的運行率約為 35 至 45 個基點，我們希望這被證明是保守的。但時間會證明一切。

But no specific retail type tenants or anything like that, that have jumped out to us. It's been more broader based than that other than just maybe the California-based tenancy. Yes, so that's (inaudible)

但我們並沒有發現什麼特別的零售類型的租戶或類似的東西。除了可能僅位於加州的租賃之外，它的租賃範圍還更為廣泛。是的，就是這樣（聽不清楚）

That's helpful. Then one quick one. What was total leasing development in square feet in 2Q? I can't simplifying that number in the press release or so relative to the 114,000 from last quarter.

這很有幫助。然後快速地做一件事。第二季租賃開發總面積為多少平方英尺？我無法在新聞稿中簡化這個數字，或者相對於上一季的 114,000 來說。

Yes. We had five leases signed during the quarter. I'm looking at the numbers that I don't have by quarter total breakdown. So we can e-mail that to you off-line.

是的。本季我們簽了五份租約。我正在查看沒有按季度總計細分的數字。因此我們可以離線透過電子郵件將其發送給您。

I think it was around 180,000 feet and just in 2Q -- we can -- let's confirm that. But I tell you it's right around that range, I believe. So again, smaller deals coming across larger deals, floating -- you're welcome.

我認為它的高度大約是 180,000 英尺，就在第二季度，我們可以確認這一點。但我告訴你，我相信它就在這個範圍內。所以，再次強調，小交易遇到大交易，浮動——不客氣。

There are no further questions at this time. I'd like to turn the call over to Mr. Marshall Loeb for closing comments. Sir, please go ahead.

目前沒有其他問題。我想將電話轉給馬歇爾·勒布先生，請他發表最後評論。先生，請繼續。

Everyone, thank you for your time and your interest in East Group this morning. If I hope we got to your question, if not, or if there's follow-up questions, Brent and I are certainly available and look forward to speaking with you again soon. Take care.

各位，感謝你們今天早上抽出時間並對 East Group 感興趣。我希望我們能夠回答您的問題，如果沒有，或者有後續問題，布倫特和我當然可以回答，並期待很快再次與您交談。小心。

Thank you.

謝謝。

This concludes today's conference call. Thank you very much for your participation. You may now disconnect.

今天的電話會議到此結束。非常感謝您的參與。您現在可以斷開連線。