Empire State Realty Trust Inc (ESRT) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Empire State Realty Trust Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

您好，歡迎參加帝國房地產信託 2024 年第二季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行簡短的問答環節。[操作員說明] 溫馨提示，本次會議正在錄製中。

It is now my pleasure to introduce your host, Heather Houston, Senior Vice President, Chief Counsel, Corporate and Secretary. Thank you. You may begin.

現在我很高興向您介紹東道主希瑟·休斯頓 (Heather Houston)，她是高級副總裁、首席法律顧問、公司兼秘書。謝謝。你可以開始了。

Good afternoon. Thank you for joining us today for Empire State Realty Trust's second quarter 2024 earnings conference call. In addition to the press release distributed yesterday, a quarterly supplemental package with further detail on our results and our latest investor presentation were posted in the Investors section of the Company's website at esrtreit.com.

午安.感謝您今天參加帝國州立房地產信託公司 2024 年第二季財報電話會議。除了昨天發布的新聞稿外，該公司網站 esrtreit.com 的投資者部分還發布了季度補充資料，其中包含有關我們業績的更多詳細資訊和最新的投資者介紹。

On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in applicable securities laws, including those related to market conditions, property operations, capital expenditures, income expense, financial results and proposed transactions and events. As a reminder, forward-looking statements represent management's current estimates. They are subject to risks and uncertainties, which may cause actual results to differ from those discussed today.

在今天的電話會議上，管理層準備好的評論和對您問題的回答可能包含適用證券法中定義的前瞻性陳述，包括與市場狀況、財產運營、資本支出、收入支出、財務業績以及擬議交易和事件相關的陳述。提醒一下，前瞻性陳述代表管理階層目前的估計。它們面臨風險和不確定性，可能導致實際結果與今天討論的結果有所不同。

Empire State Realty Trust assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements in the Company's filings with the SEC.

帝國大樓信託公司不承擔未來更新任何前瞻性陳述的義務。我們鼓勵聽眾查看公司向美國證券交易委員會提交的文件中與這些前瞻性陳述相關的更詳細討論。

During today's call, we will discuss certain non-GAAP financial measures such as FFO, modified and core FFO, NOI, same store property cash NOI, EBITDA and adjusted EBITDA, which we believe are meaningful in evaluating the Company's performance. The definitions and reconciliations of these measures to the most directly comparable GAAP measures are included in the earnings release and supplemental package, each available on the Company's website.

在今天的電話會議中，我們將討論某些非GAAP 財務指標，例如FFO、修改後的核心FFO、NOI、同店物業現金NOI、EBITDA 和調整後的EBITDA，我們認為這些指標對評估公司績效有意義。這些衡量標準與最直接可比較的公認會計原則衡量標準的定義和調節包含在收益發布和補充包中，每項都可以在公司網站上找到。

Now, I will turn the call over to Tony Malkin, our Chairman and Chief Executive Officer.

現在，我將把電話轉給我們的董事長兼執行長托尼·馬爾金。

Thanks, Heather. And good afternoon to everyone. Yesterday, we reported ESRT's strong second quarter year-to-date results. We are happy to report continued strong leasing momentum, observatory growth and capital recycling progress. So, let's dive into our discussion of our results for 2Q and our outlook for the rest of 2024.

謝謝，希瑟。大家下午好。昨天，我們報告了 ESRT 今年迄今第二季度的強勁業績。我們很高興地報告持續強勁的租賃動能、觀測站成長和資本回收進展。因此，讓我們深入討論第二季的業績以及 2024 年剩餘時間的展望。

In the second quarter, we delivered once again on office leasing absorption and positive rent spreads. Here's the big leasing story for New York City office. Team ESRT put points on the board again with our 10th consecutive quarter of least percentage growth, that's 10 quarters in a row and our 12th consecutive quarter of positive New York City mark to market lease spreads.

第二季度，我們再次實現了辦公室租賃吸收和正租金利差。這是紐約市辦公室的重大租賃故事。ESRT 團隊再次在董事會上得分，我們連續第 10 個季度增長率最低，這是連續第 10 個季度，我們連續第 12 個季度紐約市標價與市場租賃價差為正值。

Positive lease absorption, positive lease spreads, New York City is strong and our modernized, amenitized energy efficient properties with indoor environmental quality are in demand. Our Observatory performance continues very nicely and was named number one destination attraction in the United States for the third consecutive year and number one destination attraction in the world for the first time and TripAdvisor's best of the best.

積極的租賃吸收、積極的租賃利差，紐約市實力強勁，我們現代化、設施化、節能、室內環境品質好的物業很受歡迎。我們的天文台表現繼續非常出色，連續第三年被評為美國第一大目的地景點，並首次被評為全球第一大目的地景點，並被 TripAdvisor 評選為最佳目的地景點。

We have contracted to expand the retail component of our NOI with additional retail on the Prime North 6th submarket of the remarkable Williamsburg submarket of Brooklyn. And we maintain a best-in-class balance sheet. In 2024, ESRT is on our front foot and we are eager to create additional value for our shareholders in the current real estate cycle.

我們已簽訂合同，擴大 NOI 的零售部分，在布魯克林著名的威廉斯堡子市場的 Prime North 6 子市場增加零售。我們保持著一流的資產負債表。2024 年，ESRT 處於領先地位，我們渴望在當前的房地產週期中為股東創造額外價值。

Year-to-date, we have leased 640,000 square feet, of which 270,000 square feet were leased in the second quarter. Our Manhattan office portfolio had 170 basis points of positive leased absorption year over year and is now 93.3% leased. Our redevelopment work over the past decade has produced a unique top of tier product that tenants want to lease. Please see a new slide on Page 9 of our investor deck that features great before and after pictures.

年初至今，我們已租出 64 萬平方英尺，其中 27 萬平方英尺是在第二季租的。我們曼哈頓的辦公室投資組合的租賃吸收率年增了 170 個基點，目前已出租率為 93.3%。我們過去十年的重建工作已經產生了租戶想要租賃的獨特的頂級產品。請參閱我們投資者平台第 9 頁的一張新幻燈片，其中包含精美的前後圖片。

ESRT's commitment to service and tenant relationships continue to drive strong tenant retention and expansion within our portfolio over time. Since our IPO and this is a new number that just continues to grow. We have seen 2.8 million square feet of new leases comprised of tenant expansions. Tenants appreciate that we have the lowest leverage of any New York City REIT, a strong liquidity position and have addressed all meaningful debt maturities until December 2026.

隨著時間的推移，ESRT 對服務和租戶關係的承諾繼續推動我們的投資組合中強勁的租戶保留和擴張。自從我們首次公開募股以來，這是一個持續成長的新數字。我們已經看到 280 萬平方英尺的新租賃包括租戶擴張。租戶們對我們擁有紐約市房地產投資信託基金中最低的槓桿率、強大的流動性狀況以及在 2026 年 12 月之前解決所有有意義的債務到期問題表示讚賞。

Our balance sheet delivers leases.

我們的資產負債表提供租賃。

Year-to-date, Observatory NOI is up 6% year-over-year, driven by continued improvement in revenue per caps and increase in visitation. Our NOI per cap towers above the competition. Our global brand awareness has no equal. And as noted, in June, the Empire State Building deck was Observatory Deck was named the number one attraction in the world and TripAdvisor's 2024 Travelers Choice Awards, Best Things to Do, and the number one attraction in the United States for the third consecutive year. I promised our Observatory team I would take a pie in the face if we achieved this great result and watch our social channels for that very occurrence soon..

今年迄今為止，在人均收入持續改善和參觀人數增加的推動下，天文台 NOI 年比增加 6%。我們的人均 NOI 高於競爭對手。我們的全球品牌知名度無與倫比。如前所述，6 月，帝國大廈觀景台被評為全球第一景點，並被TripAdvisor 2024 年旅行者選擇獎、最佳體驗獎評為美國第一景點，連續第三年被評為美國第一景點。我向我們的天文台團隊保證，如果我們取得如此出色的成績，我將接受餡餅，並很快關注我們的社交管道。

See Slide 17 of our investor presentation for more on the Observatory performance story. Sustainability continues to be a cornerstone of ESRT's business philosophy. And we are the leader in environmental stewardship and healthy building performance. Just last week, the Empire State Building earned the Building and Owners Management Association, OMA, 2024 International Earth Award. That is a big deal and we are so happy for the recognition of our team. Please read our 2023 Sustainability Report to see what leadership looks like.

有關天文台業績故事的更多信息，請參閱我們投資者演示文稿的幻燈片 17。永續發展仍是 ESRT 經營理念的基石。我們是環境管理和健康建築性能的領導者。就在上週，帝國大廈榮獲建築和業主管理協會 OMA 2024 年國際地球獎。這是一件大事，我們很高興我們的團隊得到了認可。請閱讀我們的 2023 年永續發展報告，以了解領導力是什麼樣的。

Our track record of successful sustainability partnerships with companies and their employees attracts tenants and contributes to our leasing success. Tom, Christina and Steve will provide more detail on our progress and how we plan to accomplish these goals in the balance of 2024.

我們與公司及其員工的永續發展合作夥伴關係的成功記錄吸引了租戶，並為我們的租賃成功做出了貢獻。Tom、Christina 和 Steve 將提供有關我們進展情況以及我們計劃如何在 2024 年餘下時間實現這些目標的更多詳細資訊。

Now I'd like to hand it over to Tom.

現在我想把它交給湯姆。

Thanks, Tony, and good afternoon, everyone.

謝謝托尼，大家下午好。

In the second quarter, our office and retail portfolio continued its steady trajectory of positive absorption. This was the 10th consecutive quarter in which our team increased our lease percentage, that's an increase of 690 basis points since the fourth quarter of 2021. Today, our Manhattan office portfolio stands at 93.3% leased, an increase of 60 basis points compared to last quarter and is up 170 basis points compared to a year ago.

第二季度，我們的辦公室和零售投資組合持續保持積極吸收的穩定軌跡。這是我們團隊連續第十個季度提高租賃百分比，自 2021 年第四季以來增加了 690 個基點。如今，我們曼哈頓辦公室組合的租賃率為 93.3%，比上季增加了 60 個基點，比去年同期增加了 170 個基點。

In the second quarter, our Manhattan office increased by 120 basis points year-over-year to 88.8%. The second quarter was also our 12th straight quarter with positive mark to market lease spreads in our Manhattan office portfolio. New and renewal leases were signed with positive mark to market rent spreads of 2%.

第二季度，我們曼哈頓辦公室年增 120 個基點，達到 88.8%。第二季也是我們曼哈頓辦公室投資組合連續第 12 季實現正值市場租賃價差。新簽訂的和續約的租約與市場租金差價為 2%。

Leasing volumes continue to be strong with 272,000 square feet of total leasing in the second quarter, inclusive of 55,000 square feet of early renewals. This increases the total lease assigned year-to-date to 642,000 square feet. We have added new disclosure in our supplemental on pages 11 to 12 to include early renewals, defined as leases that are renewed two or more years ahead of lease expiration. Nearly all the early renewals signed year-to-date were done in connection with expansions. While it has always been our practice to seek opportunity to extend the lease term of existing tenants, we did not previously include these numbers in our reported renewal statistics.

租賃量持續強勁，第二季租賃總量為 272,000 平方英尺，其中包括提前續租的 55,000 平方英尺。這使得年初至今分配的總租賃面積增加至 642,000 平方英尺。我們在第 11 至 12 頁的補充資料中新增了新的揭露內容，包括提前續約，即在租約到期前兩年或兩年以上續約的租約。今年迄今為止簽署的幾乎所有早期續約都是與擴張相關的。雖然我們一直在尋求機會延長現有租戶的租期，但我們之前並未將這些數字納入我們報告的續租統計數據中。

Notable office leases signed during the second quarter include an 11-year 41,000 square foot expansion lease with Pontera Solutions, who relocate to the Empire State Building from the current 11,000 square foot space at 111 West 33rd Street. An 11-year 28,000 square foot new lease on the two highest office floors at the Empire State Building with global management consulting firm Kearney and an 11-year 25,000 square foot new lease with The William Carter Company at 1350 Broadway. An 11-year 12,000 square foot expansion lease at one Grand Star took place, and we signed leases for 17 prebuilt office suites that total 87,000 square feet.

第二季簽署的著名辦公租約包括與 Pontera Solutions 簽訂的為期 11 年的 41,000 平方英尺擴建租賃合約，該公司從西 33 街 111 號目前的 11,000 平方英尺空間搬遷到帝國大廈。與全球管理顧問公司 Kearney 簽訂了帝國大廈最高兩層辦公大樓為期 11 年的 28,000 平方英尺新租約，以及與威廉卡特公司在百老匯 1350 號簽訂了為期 11 年的 25,000 平方英尺新租約。Grand Star 簽訂了為期 11 年的 12,000 平方英尺擴建租賃合同，我們簽署了 17 間預建辦公套房的租約，總面積為 87,000 平方英尺。

At the Empire State Building and One Grand Central Place, we have increased asking rents in response to strong demand. Additionally, we have begun to reduce the amount of free rent offered in proposals on deals throughout the portfolio. As shown on Page 10 of our supplemental, we have $42 million in an incremental cash revenue from signed leases not commenced and a frequent burn off. And just this morning, we received a signed lease from a tech firm for a full floor of 24,000 square feet at 1350 Broadway.

在帝國大廈和中央廣場一號，我們提高了租金要價，以應對強勁的需求。此外，我們已開始減少整個投資組合交易提案中提供的免費租金金額。正如我們的補充資料第 10 頁所示，我們有 4,200 萬美元的增量現金收入來自已簽署的尚未開始的租賃以及頻繁的燒毀。就在今天早上，我們收到了一家科技公司簽署的位於百老匯 1350 號的整層 24,000 平方英尺的租約。

Our leasing results demonstrate that our fully modernized buildings located in Midtown with access to mass transit, quality amenities, strong balance sheet, great service, best in class indoor environmental quality and sustainability and an accessible price point continue to attract quality tenants. ESRT offers top of tier product in our price bracket and our portfolio offers what tenants wants. You've heard us talk about the $1 billion spent to fully modernize and magnetized our portfolio.

我們的租賃結果表明，我們位於市中心的完全現代化的建築擁有公共交通、優質的設施、強大的資產負債表、優質的服務、一流的室內環境品質和可持續性以及實惠的價格點，繼續吸引優質租戶。ESRT 提供我們價格範圍內的頂級產品，我們的產品組合滿足租戶的需求。您已經聽過我們談論花費 10 億美元來全面現代化和磁化我們的投資組合。

Please make sure to check out our new slide on Page 9 in the investor presentation with before and after pictures to help visualize just how meaningful portfolio transformation has been. It is because of this redevelopment work over the past decade, carried out by our exceptional leaders, Ryan Kass in Leasing, Mike Prunty in Property Management, Dana Schneider in Sustainability, and Pete Sjolund in Construction, that we have top of tier assets today that attract leasing demand and win in the flight to quality.

請務必查看投資者簡報中第 9 頁的新投影片，其中包含之前和之後的圖片，以幫助直觀地了解投資組合轉型的意義。正是由於我們傑出的領導者（租賃部門的Ryan Kass、物業管理部門的Mike Prunty、可持續發展部門的Dana Schneider 和建築部門的Pete Sjolund）在過去十年中開展的重建工作，我們今天才擁有頂級資產，吸引租賃需求，以品質取勝。

In addition to the previously mentioned 24,000 square foot lease that was signed today, we have a healthy pipeline of another 150,000 square feet of leases in negotiation, of which 70,000 square feet are new deals and the balance are renewals. In our Manhattan office portfolio, we have modest lease expiration for the balance of 2024 with 190,000 square feet of known vacates and 12,000 square feet is undecided at this time.

除了之前提到的今天簽署的 24,000 平方英尺租約外，我們還有另外 150,000 平方英尺的租約正在談判中，其中 70,000 平方英尺是新交易，其餘的是續約。在我們曼哈頓的辦公大樓投資組合中，我們的租賃期限在 2024 年剩餘時間內適度到期，已知空置面積為 190,000 平方英尺，目前尚未確定 12,000 平方英尺。

Looking forward to 2025, we have only 162,000 square feet of known vacates and 114,000 square feet of tenants who are undecided. This is against the backdrop of an average 827,000 square feet of annual leasing for the past three years in our Manhattan office portfolio. Our multifamily portfolio with occupancy of 97.9% at quarter end continues to perform exceptionally well and benefit from strong market fundamentals and recent property improvements.

展望 2025 年，我們只有 162,000 平方英尺的已知空置面積和 114,000 平方英尺的尚未決定的租戶。這是在過去三年我們曼哈頓辦公大樓投資組合平均每年租賃面積 827,000 平方英尺的背景下實現的。我們的多戶型投資組合截至季末的入住率為 97.9%，持續表現出色，並受益於強勁的市場基本面和近期的房地產改善。

In summary, in the second quarter, we signed over 272,000 square feet of commercial leases. We increased our Manhattan office leased percentage by 170 basis points from a year ago to 93.3%. We had our 10th consecutive quarter of increased leased percentage. Our Manhattan office occupancy increased by 120 basis points compared to last year to 88.8%. We have a healthy pipeline of activity and we continue to have strong performance in our multifamily portfolio.

總而言之，第二季我們簽署了超過 272,000 平方英尺的商業租賃。我們將曼哈頓辦公室的租賃率比一年前提高了 170 個基點，達到 93.3%。我們的租賃百分比連續第十個季度成長。我們曼哈頓辦公室的入住率比去年增加了 120 個基點，達到 88.8%。我們擁有健康的活動管道，我們的多戶住宅投資組合持續表現強勁。

With that, thank you. I will now turn the call over to Christina.

就這樣，謝謝你。我現在將把電話轉給克里斯蒂娜。

Thanks, Tom. We continue to make progress with our capital recycling initiatives. As disclosed in our earnings release, subsequent to quarter end, we entered into two agreements to acquire Prime Retail Assets in Williamsburg, Brooklyn for $195 million in aggregate with anticipated closing dates in 3Q.

謝謝，湯姆。我們的資本回收計劃繼續取得進展。正如我們在財報中所揭露的那樣，季末後，我們簽訂了兩項協議，以總計 1.95 億美元的價格收購布魯克林威廉斯堡的 Prime Retail Assets，預計交割日期為第三季。

The first portfolio is for $103 million of assets located on North 6th Street between Wythe and Berry Street. These assets span approximately 40,000 square feet across five retail storefronts that include high quality tenants such as [Indiscernible]. These assets are 86% leased with near term upside from signed leases that have not yet commenced in addition to vacancy lease up. The in-place retailers have a weighted average lease term of 7.5 years and we estimate significant mark-to-market upside as leases roll.

第一個投資組合位於 Wythe 和 Berry Street 之間的北 6 街，資產價值 1.03 億美元。這些資產佔地約 40,000 平方英尺，分佈在五個零售店面中，其中包括優質租戶，例如[難以辨認]。這些資產的 86% 已出租，除了空置租賃外，尚未開始的已簽署租賃的短期上升空間。就地零售商的加權平均租賃期限為 7.5 年，我們預計隨著租賃的延長，以市價計算會有顯著的上升空間。

The second portfolio is for $92 million of prime retail assets also on North 6th Street. Due to confidentiality requirements, more details on this additional portfolio will be disclosed upon closing. We are very pleased to increase our scale in this prime retail corridor of Williamsburg following our prior acquisition of a retail asset on North 6th Street in September 2023 that continues to benefit from increasing population density, strong household income and new multifamily and hospitality development recently completed and underway.

第二個投資組合是同樣位於北六街的價值 9,200 萬美元的優質零售資產。由於保密要求，有關此額外投資組合的更多細節將在交易結束時披露。繼我們於2023 年9 月收購北六街的零售資產之後，我們非常高興能夠擴大威廉斯堡這一主要零售走廊的規模，該資產繼續受益於人口密度的增加、強勁的家庭收入以及最近完成的新多戶住宅和酒店開發項目並正在進行中。

We see the Williamsburg story to be a decade ahead of value creation. Please see Slides 19 to 20 for more color on these transactions and the strength of this retail submarket. These all-cash acquisitions are consistent with our strategy over the past couple of years to recycle capital and balance sheet capacity from non-core suburban assets into strong New York City assets.

我們認為威廉斯堡的故事比價值創造領先十年。請參閱投影片 19 至 20，以了解有關這些交易的更多資訊以及該零售子市場的實力。這些全現金收購符合我們過去幾年的策略，即將資本和資產負債表能力從非核心郊區資產回收到強大的紐約市資產。

As shown in a new Slide 10 in our investor deck, we have disposed of five non-core assets in Westchester and Connecticut since 2022 and recycled into nearly $650 million of high-quality New York City multifamily and retail assets that have great growth prospects and less capital expenditure requirements over time.

正如我們投資者平台中的新幻燈片10 所示，自2022 年以來，我們已處置了威徹斯特和康乃狄克州的五項非核心資產，並將其回收為近6.5 億美元的優質紐約市多戶型和零售資產，這些資產具有良好的成長前景和隨著時間的推移，資本支出需求會減少。

As a result of this capital recycling, we have improved our sector diversification. Pro forma for the latest retail acquisition and the previously announced disposition of suburban office. Our NOI composition is approximately 58% office, 12% retail, 5% multifamily and 25% Observatory. Importantly, we strategically executed on these capital recycling transactions while maintaining our peer-leading balance sheet strength and below average leverage.

透過這種資本循環，我們改善了產業多元化。最新零售收購和先前宣布的郊區辦公室處置的預估。我們的 NOI 組成約為 58% 辦公大樓、12% 零售店、5% 多戶住宅和 25% 觀景台。重要的是，我們策略性地執行了這些資本回收交易，同時保持了同業領先的資產負債表實力和低於平均的槓桿率。

Going forward, we will continue to focus on investment opportunities with attractive upside potential in addition to distressed transactions that we expect to arise in this cycle.

展望未來，除了我們預計在本週期中出現的不良交易外，我們將繼續關注具有有吸引力的上升潛力的投資機會。

In July, we executed an agreement to refinance the mortgage on our MetroCentre property that was due to mature in November 2024, beginning November 2024. The new loan balance of $72 million will be interest only at the same interest rate of 3.6% with a maturity of November 2029, inclusive of a one year extension option.

7 月，我們簽署了一項協議，為 MetroCentre 房產的抵押貸款進行再融資，該協議將於 2024 年 11 月到期，從 2024 年 11 月開始。7,200萬美元的新貸款餘額將以3.6%的相同利率計息，到期日為2029年11月，包括一年的延期選項。

As previously mentioned, we intend to use a portion of the proceeds from our recent unsecured notes issuance to pay down the $100 million maturity in March 2025. As a result, we have no meaningful uncovered debt maturity to address until December 2026 when a $175 million term loan matures.

如前所述，我們打算使用最近發行的無擔保票據的部分收益來償還 2025 年 3 月到期的 1 億美元。因此，在 2026 年 12 月 1.75 億美元的定期貸款到期之前，我們沒有任何有意義的未償債務到期需要解決。

At quarter end, the Company had $2.3 billion of total debt outstanding with a weighted average interest rate of 4.27% and a weighted average term to maturity of 5.8 years pro form a for the recent Metro Center refinancing and the planned pay down of our March 2025 debt maturity. We have strong liquidity, no floating rate debt exposure, a well laddered debt maturity schedule and the lowest leverage among all New York City focused REITs at 5.1 times net debt to EBITDA.

截至季末，公司未償還債務總額為 23 億美元，加權平均利率為 4.27%，加權平均到期期限為 5.8 年，用於最近的 Metro Center 再融資和計劃於 2025 年 3 月還款債務到期。我們擁有強大的流動性、無浮動利率債務風險、階梯式的債務到期時間表以及所有紐約市重點房地產投資信託基金中最低的槓桿率（淨債務與 EBITDA 的 5.1 倍）。

Please note that we do expect leverage to tick up from this level once the Williamsburg acquisitions are closed and after we utilize cash from the recent unsecured notes offering to pay down maturing debt in March 2025. As we have said for many years, we are prepared to increase leverage to take advantage of value opportunities to grow our business. We view approximately 6 times net debt to EBITDA as a more stabilized leverage level to think about going forward.

請注意，我們確實預計，一旦完成威廉斯堡收購，並且我們利用最近發行的無擔保票據中的現金來償還 2025 年 3 月到期的債務，槓桿率將從這一水平上升。正如我們多年來所說，我們準備好增加槓桿，利用價值機會來發展我們的業務。我們認為 EBITDA 約 6 倍的淨債務是未來考慮的更穩定的槓桿水平。

And now, I will turn the call over to Steve to discuss our results and outlook for the remainder of 2024. Steve?

現在，我將把電話轉給 Steve，討論我們的業績和 2024 年剩餘時間的前景。史蒂夫？

Thanks, Christina. For the Q2 of 2024, we reported core FFO of $66 million or $0.24 per diluted share. Same store property cash NOI increased 7.4% year-over-year, primarily driven by higher revenues from cash rent commencement, which was partially offset by increases in property operating expenses, which we anticipate in our guidance, albeit the increase was less than initially guided, partially due to lighter utility expenses than expected.

謝謝，克里斯蒂娜。對於 2024 年第二季度，我們報告的核心 FFO 為 6,600 萬美元，或攤薄後每股 0.24 美元。同店物業現金 NOI 年比增長 7.4%，主要是由於現金租金開始帶來的收入增加，這部分被物業運營費用的增加所抵消，我們在指導中預計這一點，儘管增幅低於最初指導部分原因是公用事業費用低於預期。

Note that the second quarter also included approximately $2 million of positive onetime revenue items. Excluding these nonrecurring items from the current period and prior year period, second quarter adjusted same store cash NOI increased by approximately 6% year-over-year.

請注意，第二季還包括約 200 萬美元的一次性正收入項目。排除本期和去年同期的這些非經常性項目，第二季調整後同店現金 NOI 較去年同期成長約 6%。

Moving to our Observatory business. We generated net operating income of $25 million in the second quarter, approximately 2% higher than the prior year period. Observatory expense was $8.9 million in the second quarter. Keep in mind that the shift of the Easter holiday into the first quarter of this year versus the second quarter of last year impacts comparability. Year-to-date, net operating income for the Observatory was $41 million an increase of approximately 6% year-over-year. Revenue per capita remains high and year to date admissions continue to improve year-over-year.

轉向我們的天文台業務。第二季我們實現淨營業收入 2,500 萬美元，比去年同期成長約 2%。第二季天文台費用為 890 萬美元。請記住，與去年第二季相比，今年第一季的復活節假期會影響可比性。今年迄今為止，天文台的淨營業收入為 4,100 萬美元，年增約 6%。人均收入仍然很高，今年迄今的入場人數繼續逐年增加。

Now on to our outlook for 2024. We continue to expect 2024 FFO to range between $0.90 $0.94 per fully diluted share. Within this range, our key assumptions are as follows, same store cash net operating income for the commercial portfolio to range from zero to 3% relative to 2023 levels. This represents a 100 basis point increase from our original expected range.

現在談談我們對 2024 年的展望。我們繼續預計 2024 年 FFO 的價格區間為每股完全稀釋後每股 0.90 美元 0.94 美元。在此範圍內，我們的主要假設如下，商業投資組合的同店現金淨營業收入相對於 2023 年的水準為 0 至 3%。這比我們最初的預期範圍增加了 100 個基點。

The increase is largely driven by our expectation for property operating expenses and real estate taxes to come in towards the lower end of our previous range of a 6% to 8% increase over the prior year. We now expect an approximate 6% to 7% increase year-over-year. The improvement is primarily due to lighter than expected utility and payroll expenses.

這一增長主要是由於我們預計物業營運費用和房地產稅將比上一年增長 6% 至 8%，接近我們先前範圍的下限。我們現在預計將年增約 6% 至 7%。這一改善主要是由於公用事業和工資支出低於預期。

We continue to expect positive revenue growth, which assumes commercial occupancy of 87% to 89% by year end 2024, driven by a strong pipeline of signed leases, not yet commenced and manageable lease expirations in 2024.

我們繼續預期營收將出現正成長，假設商業入住率到 2024 年底將達到 87% 至 89%，這主要得益於大量已簽署但尚未開始的租賃以及 2024 年租賃到期的可控情況。

We continue to expect 2024 Observatory NOI to be approximately $94 million to $102 million and average Observatory expenses of approximately $9 million per quarter. Our guidance range takes into account variability in our Observatory results due to tourism fluctuations and bad weather in any given quarter and the recent capital markets and transaction activity announced year-to-date.

我們仍預計 2024 年天文台 NOI 約為 9,400 萬至 1.02 億美元，平均天文台每季支出約 900 萬美元。我們的指導範圍考慮了由於任何特定季度的旅遊波動和惡劣天氣以及今年迄今為止公佈的近期資本市場和交易活動而導致的觀測站結果的變化。

Also included within our FFO guidance range, we expect a larger than usual increase in 2024 G&A to approximately $68 million for the full year to reflect the recent annual promotions and accelerated recognition of certain non-cash stock-based compensation expense as a result of executives approaching retirement eligibility.

同樣包含在我們的 FFO 指導範圍內的是，我們預計 2024 年全年 G&A 將比平常增加至約 6800 萬美元，以反映最近的年度促銷以及高管對某些非現金股票薪酬費用的加速認可接近退休資格。

While we do not provide our formal outlook for 2025 yet, we do believe it is important to share a few items that could impact next year. Those include; one, the full year run rate of higher G&A as just discussed; and two, the nine-month impact of the higher interest rate on our recent unsecured notes issuance.

雖然我們尚未提供 2025 年的正式展望，但我們確實認為分享一些可能影響明年的計畫非常重要。這些包括；一是剛才討論的較高 G&A 的全年運行率；第二，利率上升對我們最近發行的無擔保票據的九個月影響。

With that, I will now turn the call back to the operator for the Q&A session. Operator?

這樣，我現在將把電話轉回給接線生進行問答環節。操作員？

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is required to all of you may press star two, if you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please while we poll for questions. Thank you.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路需要，如果您想從佇列中刪除問題，請按星號鍵 2。請稍等一下，我們進行投票提問。謝謝。

Our first question comes from the line of Steve Sakwa with Evercore. Please proceed with your question.

我們的第一個問題來自 Steve Sakwa 和 Evercore 的對話。請繼續你的問題。

Yes, thanks. Good afternoon. I mean, maybe starting on the just the pipeline, Tom, and sort of the leasing activity that you're seeing. Just any additional thoughts and color that you can provide around kind of expansion opportunities and just kind of the discussions that you're having with tenants and I noticed that you had that new disclosure about early renewals. Is that something that you're hearing and seeing more of today and tenants willing to come to you early maybe sooner than they have to kind of lock in space today.

是的，謝謝。午安.我的意思是，湯姆，也許只是從管道開始，以及您所看到的租賃活動。只是您可以圍繞擴展機會以及您與租戶進行的討論提供的任何其他想法和色彩，我注意到您有關於提前續約的新披露。這是您今天聽到和看到的更多事情嗎？

I'll take the second part of your question first, Steve. We have always executed on early renewals and certainly we make that part of our discussion with existing tenants. Often it comes in connection with an expansion of an existing tenant where we look to use that opportunity to extend their existing lease on the back of their current term. And so, that's always been kind of our part of our diet. And so that we see that really more the case.

我先回答你問題的第二部分，史蒂夫。我們一直執行提前續約，當然我們也將此作為與現有租戶討論的一部分。通常，它與現有租戶的擴張有關，我們希望利用這個機會在當前租期的基礎上延長他們現有的租約。因此，這一直是我們飲食的一部分。所以我們看到的情況確實更是如此。

As far as pipeline, we've got look, as I mentioned before, we just received a signed lease for a full floor of 24,000 square feet at 1350 Broadway, between that and the deal we signed with Carter's, it's going to bring that building into the mid-90% leased. We've got another, call it, 160,000 square feet of leases in negotiation, 150,000 of that is in Manhattan for office portfolio. And we're look, we've been approached by a tenant at the Empire State Building for an expansion.

就管道而言，我們已經看到，正如我之前提到的，我們剛剛收到了百老匯 1350 號 24,000 平方英尺的整層租賃合同，在我們與卡特簽署的協議之間，它將帶來該建築進入中期90%已出租。我們還有另一個，稱之為，160,000 平方英尺的租賃合約正在談判中，其中 150,000 平方英尺位於曼哈頓，用於辦公組合。我們發現，帝國大廈的一位租戶已聯繫我們進行擴建。

We haven't yet issued paper on that, but they're talking to us about taking an additional full floor. So, what we're seeing more often is that more and more tenants have moved beyond this whole issue of work from home. They're committing to their space in New York City. They want desks for their employees. Their employees want to be in the office and you're seeing more and more of that decisiveness by tenants and that's reflected in look the attractive leasing results we've had to date and the good pipeline we're seeing now.

我們還沒有就此發表文件，但他們正在與我們討論額外增加一整層樓的事宜。因此，我們經常看到的是，越來越多的租戶已經擺脫了在家工作的整個問題。他們致力於在紐約市建立自己的空間。他們想要為員工提供辦公桌。他們的員工希望留在辦公室，你會看到租戶越來越果斷，這反映在我們迄今為止有吸引力的租賃結果和我們現在看到的良好管道中。

And the only thing I'd add to that, Steve, Tony Malkin here is that people come to us, brokers come to us, we are on the list because we're I'm not just pushing our own book here. They come for the modernization, amenitization, the energy efficiency, the IEQ, they look at that and say these are key attractants for their employees.

史蒂夫、東尼馬爾金，我唯一要補充的是，人們來找我們，經紀人來找我們，我們在名單上，因為我們不僅僅是在這裡推銷我們自己的書。他們來這裡是為了現代化、設施化、能源效率、IEQ，他們看到這些並說這些是對員工的關鍵吸引力。

The brokers come to us because of our balance sheet and they know that there is no issue of speaking with us and the lender, that we can do the whole transaction ourselves and take care of everything based on our reputation.

經紀人之所以來找我們，是因為我們的資產負債表，他們知道與我們和貸方交談沒有問題，我們可以自己完成整個交易，並根據我們的聲譽處理一切。

And the existing tenants are huge advocates for us. We see it we see now a lot of new tenants come to us on the basis of recommendation of current tenants. So, we are in a different zone. New York City, in general, is recovering. We are not recovering. We are forward.

現有的租戶是我們的大力支持者。我們看到現在有很多新租戶根據現有租戶的推薦來到我們這裡。所以，我們處於不同的區域。總體而言，紐約市正在復甦。我們還沒有康復。我們正在前進。

Okay, great. And then second question, Christine, I know you can't provide maybe tons of detail on the retail transactions, but maybe on the bigger one. Can you kind of provide anything about going in yields and maybe where you think that portfolio might stabilize a couple of years out? How do you think about the NOI growth on that portfolio over the next maybe two, three, four years?

好的，太好了。然後是第二個問題，克里斯汀，我知道你可能無法提供有關零售交易的大量細節，但也許可以提供更大的交易細節。您能否提供有關收益率的任何信息，以及您認為幾年後投資組合可能會穩定的情況？您如何看待該投資組合在未來兩年、三年、四年內的 NOI 成長？

Sure. So, we will definitely provide more details at closing. Just given confidentiality agreements, we're not closed yet. We can't provide that much more at this time. What I can say as a reference point, which should be helpful is our acquisition last year of Prime Retail in Williamsburg was just under a 6% for a stabilized asset with no near-term CapEx and strong upside over time.

當然。因此，我們肯定會在結束時提供更多細節。剛剛簽訂了保密協議，我們還沒有關閉。目前我們無法提供更多。我可以說作為參考點，這應該會有幫助的是，我們去年收購了威廉斯堡的Prime Retail，對於一項穩定的資產來說，其回報率略低於6%，沒有近期資本支出，並且隨著時間的推移會有強勁的上漲空間。

As we alluded to both in my remarks and in our investor deck for these acquisitions, these are prime retail assets with some near-term ramp up from signed leases not yet commenced and vacancy lease up, plus has characteristics of long-term upside that we believe will create a lot of value over time. So hopefully that's helpful in the landscape.

正如我們在我的演講和這些收購的投資者平台中提到的那樣，這些都是主要的零售資產，由於尚未開始的已簽署租賃和空置租賃的增加而帶來了一些近期的增長，並且具有我們認為的長期上升的特徵。希望這對景觀有所幫助。

I would add to that, Tony, again. If you look at this, this won't repeat SoHo meatpacking, but it's going to rhyme with SoHo meatpacking. And we think there's a solid 10-year run of growth in what will happen here in this remarkable submarket. So, we're really pleased to have been able to transact, and we’ve given you more detail than we gave on the residential acquisitions and hopefully that is better for you guys.

托尼，我想再補充一下。如果你看一下這個，它不會重複 SoHo 肉類包裝，但它會與 SoHo 肉類包裝押韻。我們認為，這個非凡的子市場將在未來 10 年實現穩健的成長。因此，我們真的很高興能夠進行交易，並且我們為您提供了比我們提供的有關住宅收購的更多詳細信息，希望這對你們來說更好。

Our next question comes from the line of John Kim with BMO Capital Markets. Please proceed with your question.

我們的下一個問題來自蒙特利爾銀行資本市場部的約翰金 (John Kim)。請繼續你的問題。

Thank you. Just a follow-up on the retail acquisition. I was wondering if you could provide where you think market rents are for Williamsburg on that corridor and where you think it could go to? I mean, if we're looking at CoStar data, it would suggest the cap rate or initial cap rate around 2%, which seems pretty low. I don't know if that data is accurate, but just wanted some color on market rents.

謝謝。只是零售收購的後續行動。我想知道您是否可以提供您認為該走廊上威廉斯堡的市場租金在哪裡以及您認為它可能會去哪裡？我的意思是，如果我們查看 CoStar 的數據，我們會發現資本化率或初始資本化率約為 2%，這似乎相當低。我不知道這個數據是否準確，但我只是想了解市場租金的情況。

Look, as Christina said, right, we're bound by confidentiality. In general, the location is fantastic. Two prime blocks on North 6th Street is where these properties are located. You can look at various market data out there where deals are getting done well north of $300 a foot. And I think at this point that's we'll have more to disclose after closing specific to our transaction.

聽著，正如克里斯蒂娜所說，對，我們受到保密的約束。總的來說，位置非常棒。這些房產均位於北六街的兩個黃金地段。您可以查看各種市場數據，其中交易成交金額已超過每英尺 300 美元。我認為，在這一點上，我們將在交易結束後披露更多具體資訊。

Combined with the characteristics here that these are this property type is one with which we've had a lot of familiarity, particularly going into developing neighborhoods historically, 10 Union Square as a prime example of that. And the fact is that these will produce a heck of a lot of cash flow out of their NOI. And that's what attracts us to this asset category and we again, we see tremendous growth here in this market area.

結合這裡的特徵，我們已經非常熟悉這種房產類型，特別是歷史上的發展中社區，聯合廣場 10 號就是一個典型的例子。事實上，這些將從他們的 NOI 中產生大量現金流。這就是吸引我們進入這個資產類別的原因，我們再次看到這個市場領域的巨大成長。

Okay. My second question is on the new disclosure you had on the lead renewals. So it looks like because of the early renewal disclosure, your first quarter leasing activity picked up as you include the 122,000 square feet of early renewals. My question is, where did you disclose that before? Was that as the leases commenced, that number was then, so you're just basically pulling forward that leasing activity or was it just not previously disclosed?

好的。我的第二個問題是關於您對潛在客戶續約的新揭露。因此，由於提前續約的揭露，您的第一季租賃活動有所增加，因為您將 122,000 平方英尺的提前續約納入其中。我的問題是，你之前在哪裡透露過這一點？是在租賃開始時，這個數字是當時的數字，所以你基本上只是在推廣租賃活動，還是只是之前沒有披露？

Yes, first of all, it was excluded from our reported leasing statistics on transactions, however, where it would appear is simply in the annual lease expirations. So as leases get pushed out, that would simply show up in the rollover schedule that appears in our supplemental. But we thought it was helpful to give the additional color on these early renewals defined as lease extensions done, where there's more than two years of remaining lease term left.

是的，首先，它被排除在我們報告的租賃交易統計數據之外，但是，它只會出現在每年的租賃到期日中。因此，當租賃被推遲時，這只會出現在我們的補充資料中的展期時間表中。但我們認為，對這些早期續約（定義為已完成的租約延期）進行額外說明是有幫助的，其中剩餘租期還剩兩年多。

Okay. I mean, I'm just when I look at the first quarter, this disclosed this quarter and last quarter activity picked up and then the lease spreads also moved a little bit. So again, I'm a little bit confused as to whether or not you're just pulling this up and previously that was disclosed when those leases commence. But I'm happy to take this offline.

好的。我的意思是，當我查看第一季時，這披露了本季和上季的活動有所回升，然後租賃價差也發生了一些變化。再說一次，我有點困惑，不知道你是否只是把這個和以前在這些租約開始時披露的內容聯繫起來。但我很高興將其離線。

Sure.

當然。

Sure. I'm not sure. Happy to spend more time with you afterwards. But I think the separate disclosure on the leasing on the early renewals is pretty straightforward.

當然。我不知道。很高興以後能有更多的時間和你在一起。但我認為提前續約租賃的單獨披露非常簡單。

Our next question comes from the line of Michael Griffin with Citi. Please proceed with your question, sir.

我們的下一個問題來自邁克爾·格里芬與花旗的對話。先生，請繼續你的問題。

Maybe just getting back to kind of the forward outlook and leasing pipeline. Tom, I think in your prepared remarks, you mentioned, I think, free rent starting to stabilize and go down. But have you seen really a change on other concessions, whether it's tenant improvements or other things? And then, can you give us a sense of kind of how net effective rents have been trending?

也許只是回到前瞻性和租賃管道。湯姆，我認為在您準備好的演講中，我認為您提到免費租金開始穩定並下降。但您是否真正看到了其他優惠的變化，無論是租戶改善還是其他方面？然後，您能為我們介紹一下淨有效租金的趨勢嗎？

So, I'm glad you asked that question, because I was expecting some questions on our leasing costs, which one might read into that they went up slightly this quarter. But on a year-to-date average, they're really very much in line with 2023. But if you look at our net effective rents over the last 3 years, 2.5 to 3 years, we're up about 10% from 2021 on an average for year-to-date. And so, I think that's a pretty healthy indicator.

所以，我很高興你問這個問題，因為我期待一些關於我們的租賃成本的問題，人們可能會認為本季租賃成本略有上升。但從今年迄今的平均值來看，它們確實與 2023 年非常吻合。但如果你看看我們過去 3 年（2.5 到 3 年）的淨有效租金，我們今年迄今的平均租金比 2021 年上漲了約 10%。所以，我認為這是一個非常健康的指標。

Look, we focus on net effect of rent because it factors in all of the lease economics, not just the leasing cost, but certainly the top line rent. The deals that we did with Kearney and Pontera, they're going to average over $80 a square foot during the term of their lease. And so generally, look, we're moving in the right direction.

看，我們關注租金的淨效應，因為它考慮了所有租賃經濟學，不僅僅是租賃成本，而且肯定是頂線租金。在我們與 Kearney 和 Pontera 達成的交易中，他們在租賃期內的平均價格將超過每平方英尺 80 美元。總的來說，我們正朝著正確的方向前進。

I'm heartened by the fact that we're tightening up on our free rent offering. We still deliver turnkey build space. We have a lot of pre-built product that's already built in second generation, keeping our leasing cost down. And our full floor deals will deliver turnkey space for tenants because they look to us to design and build the space for them, so that they can focus on their business. And we execute on what we do best.

我們正在加強免費租金服務，這讓我感到鼓舞。我們仍然提供交鑰匙建築空間。我們有許多第二代已經建置的預製產品，從而降低了我們的租賃成本。我們的全樓層交易將為租戶提供交鑰匙空間，因為他們希望我們為他們設計和建造空間，以便他們可以專注於自己的業務。我們執行我們最擅長的事。

And I would I would add to that where we do see movement right now is in our rents and our free rent, and you'll see the effects of that. And as we report in the future with greater definition, number one and number two what really helps distinguish us amongst other landlords is we have an integrated team of architecture, completely qualified construction team led by Pete Charlotte and the sustainability piece and our ability to turnkey for people, high-performing spaces with indoor environmental quality is a huge attractive. So the fact that people of all tenants of all sizes, very few tenants who come to us build out their own space. That's an added feature and benefit to a transaction with ESRT.

我想補充一點，我們現在確實看到租金和免費租金的變化，你會看到其影響。正如我們在未來以更明確的定義報告的那樣，第一和第二，真正有助於將我們與其他房東區分開來的是，我們擁有一支綜合的建築團隊、由皮特·夏洛特領導的完全合格的施工團隊、永續發展部分以及我們交鑰匙工程的能力對於人們來說，高性能的空間和室內環境品質具有巨大的吸引力。因此，事實上，各種規模的所有租戶中，很少有租戶來找我們建造自己的空間。這是 ESRT 交易的一項附加功能和優勢。

Great. Appreciate the additional color there, Tony. And then just on sort of distressed opportunities that you're seeing out in the market. I mean, it seems like the Williamsburg acquisition might have been more stabilized, maybe not as much hair on that. But for other things that you're seeing out there, I mean, are we seeing the distress more in one property type? Is it, office that is providing maybe more attractive returns? Or do you still see opportunities within retail and multifamily in order to benefit from some of the stress out there?

偉大的。托尼，欣賞那裡的額外色彩。然後就是你在市場上看到的一些不良機會。我的意思是，威廉斯堡的收購似乎更加穩定，也許沒有那麼多的毛髮。但對於你看到的其他事情，我的意思是，我們是否在一種財產類型中看到更多的困境？是辦公室能提供更有吸引力的回報？或者您仍然看到零售業和多戶型住宅中存在機會，以便從那裡的一些壓力中受益？

So, I would tell you that in multifamily, because of the GSEs, the Freddie Fannie and the popularity there, the real issue there is that if you have a low interest rate, your equity is significantly hit or could evaporate due to a refi. We don't really qualify them as distressed because we see a lot of attention there. We did do a very good purchase at 298 Mulberry. I don't think that anybody thought that was distressed. We just got in there and we found ways to create a lot of value. We do see opportunities developing in that area based on property handovers. We see a lot of attention from buyers.

所以，我想告訴你，在多戶家庭中，由於政府支持企業（GSE）、房地美房利美（Freddie Fannie）和那裡的受歡迎程度，真正的問題是，如果你的利率較低，你的資產將受到嚴重打擊，或者可能因再融資而蒸發。我們並沒有真正將他們視為苦惱的人，因為我們在那裡看到了很多關注。我們在 298 Mulberry 確實買了一筆非常好的東西。我認為沒有人認為這是令人痛苦的。我們剛進入那裡，就找到了創造大量價值的方法。我們確實看到該領域基於財產移交的機會正在發展。我們看到買家的許多關注。

With regard to the retail we purchased, you're correct. We look at that and say, we think we paid a fair price to a willing seller. And just over time, with our duration, we see a great opportunity for synergy of what we've already bought. And we really understand feet on the ground how to work on that. We do see the biggest distress in office. There's no question. And a lot of the office distress out there, it's all a matter of basis. And we've got to get to the right basis where we can attract capital to partner with us to acquire property.

關於我們購買的零售，你是對的。我們看到這一點並說，我們認為我們向願意的賣家支付了公平的價格。隨著時間的推移，隨著我們的持續時間，我們看到了我們已經購買的產品產生協同效應的絕佳機會。我們真正了解如何腳踏實地地開展工作。我們確實看到了辦公室裡最大的痛苦。毫無疑問。辦公室裡的很多苦惱，都是基礎問題。我們必須建立正確的基礎，才能吸引資本與我們合作收購財產。

And we really think that the pricing needs to be able to deliver a 3x multiple of invested capital over a 7- to 10-year time frame in order to attract capital to partner with our balance sheet to do those transactions. We do not see either the property types by location, floor plate, we've seen one office property on which we bid. And JPMorgan Chase has contracted to acquire it because it's next to their new headquarters. And outside of that, we're biding our time. We're waiting for the right pricing.

我們確實認為，定價需要能夠在 7 到 10 年的時間範圍內提供 3 倍的投資資本，才能吸引資本與我們的資產負債表合作進行這些交易。我們沒有看到按位置、樓層劃分的房產類型，我們已經看到了我們競標的一處辦公大樓房產。摩根大通已簽約收購它，因為它毗鄰他們的新總部。除此之外，我們正在等待時機。我們正在等待合適的定價。

With that in mind, I think on the overall perspective, you have to focus on the number of transactions and dollar volume of transactions are tremendously down and remain tremendously down. We do see more properties coming to the market. And the other area where I think we might see distress coming in the future also though it's a submarket is this medical research, biotech purpose-built lab space, where there's just not as much demand and there's been a lot of products put out there. But I don't think that's something we will pursue.

考慮到這一點，我認為從整體角度來看，你必須關注交易數量和交易金額大幅下降，並保持大幅下降。我們確實看到更多的房產進入市場。我認為我們未來可能會遇到麻煩的另一個領域是醫學研究、生物技術專用實驗室空間，儘管它是一個子市場，但那裡的需求並不那麼大，而且已經推出了許多產品。但我認為這不是我們會追求的目標。

Tom or Christine, anything you want to add to that, color on the market?

湯姆或克里斯汀，你想添加什麼，市場上的顏色嗎？

No

不

Okay.

好的。

I’m sorry. Please proceed with your question. Mr. Griffin?

對不起。請繼續你的問題。格里芬先生？

Yes, I just finished my questions. Thank you.

是的，我剛剛完成我的問題。謝謝。

Our next question comes from the line from Blaine Heck with Wells Fargo. Please proceed with your question.

我們的下一個問題來自 Blaine Heck 與富國銀行的對話。請繼續你的問題。

Great. Thanks. Good afternoon. Just following up on the acquisitions, can you talk a little bit more about how the transactions were sourced? Were they off market or marketed deals? And also, whether you think the NOI mix that Christina went over is optimal for your portfolio? Or should we expect the non-office exposure to kind of continue to grow?

偉大的。謝謝。午安.就收購而言，您能多談談交易的來源嗎？它們是場外交易還是市場交易？另外，您認為克里斯蒂娜討論的 NOI 組合是否最適合您的作品集？或者我們應該預期非辦公室業務會繼續成長？

So, there's a universal shaking our heads of no around the table. We really don't want to comment on the sourcing. We'll just say that we work hard on this stuff and we want to respect our partners on the other side of this transaction. So we really don't have anything to say there.

所以，大家都在桌子周圍搖頭表示不。我們真的不想對來源發表評論。我們只想說，我們在這件事上努力工作，我們希望尊重交易另一方的合作夥伴。所以我們真的沒什麼好說的。

And as far as the mix look we remain as we've said over time, we're omnivorous opportunivores. And we really we like how our NOI mix is it will develop. We think that this initial acquisition has a starting point, but then we'll have greater value over time as a component of our NOI mix. And in the meantime, though, we've got other things, which are also developing very well as far as NOI on the resi and on the office side.

就混合情況而言，我們仍然像我們所說的那樣，隨著時間的推移，我們是雜食性機會主義者。我們真的很喜歡我們的 NOI 組合將如何發展。我們認為這次最初的收購有一個起點，但隨著時間的推移，作為 NOI 組合的一部分，我們將獲得更大的價值。但同時，我們還有其他一些事情，就 RESI 和辦公室的 NOI 而言，這些事情也發展得很好。

So, I do think a thing that is of interest to us is when we come to NOI and FFO, what's really hitting the bottom line in the form of cash. And we've mentioned this in the prior earnings call and that's really our focus.

所以，我確實認為我們感興趣的一件事是，當我們談到 NOI 和 FFO 時，真正以現金形式達到底線的是什麼。我們在先前的財報電話會議中提到了這一點，這確實是我們的重點。

Everything we do, lease space, sell tickets, deliver on our sustainability objectives, manage the balance sheet, flow cash to the bottom line, so that we have greater flexibility as we go forward. And so we really will remain opportunistic. We've got a lot of areas where we can deploy capital with confidence when we see the right opportunity.

我們所做的一切，租賃空間、出售門票、實現我們的永續發展目標、管理資產負債表、將現金流向利潤，以便我們在前進時擁有更大的靈活性。因此，我們確實會保持機會主義。當我們看到合適的機會時，我們可以在許多領域充滿信心地部署資本。

Great. Thanks, Tony. And just following up on that, I guess, how did you guys weigh this purchase of retail assets versus investing more in your own stock through repurchases at potentially higher returns at this point?

偉大的。謝謝，托尼。接下來，我想，你們如何權衡購買零售資產與透過回購以潛在更高的回報更多地投資自己的股票？

We definitely look at this as something with duration will deliver a very high return to us relative to where we think a purchase of our stock we think it will greatly help our stock as we go forward. And we just think there's tremendous upside, if you have duration here. And so we do have duration and we can live through a couple of lease cycles on this. I don't know, Christina, Tom, Christina comment?

我們肯定認為，相對於我們認為購買我們的股票而言，具有久期的東西將為我們帶來非常高的回報，我們認為這將在我們前進的過程中極大地幫助我們的股票。我們只是認為，如果你能在這裡持續一段時間，就會有巨大的上升空間。所以我們確實有期限，我們可以在此度過幾個租賃週期。不知道克里斯蒂娜、湯姆、克里斯蒂娜有何評論？

I would just say we have buybacks on the agenda. We've done it in size. It remains a strategic part of capital allocation. And as we mentioned earlier, unique opportunity to create scale on a very prime retail corridor in a great location, high foot traffic in Manhattan high demographics.

我只想說我們已經將回購提上了行程。我們已經按尺寸完成了。它仍然是資本配置的策略部分。正如我們之前提到的，這是在曼哈頓人口眾多、地理位置優越、人流量大的黃金地段零售走廊上創造規模的獨特機會。

We've mentioned this market also has more opportunity for retail, more opportunity for residential, create long-term upside over time and in an asset class that has a different CapEx profiles versus office. So for a lot of reasons and this made a lot of sense.

我們已經提到，這個市場也有更多的零售機會，更多的住宅機會，隨著時間的推移創造長期的上漲空間，並且在資本支出概況與辦公大樓不同的資產類別中。出於很多原因，這很有意義。

So fortunately, we have a great balance sheet. Nothing is off the table. We'll evaluate everything but this was a really unique and great opportunity for the Company.

幸運的是，我們擁有良好的資產負債表。一切皆有可能。我們將評估一切，但這對公司來說是一個非常獨特且絕佳的機會。

Great. That's very helpful. And then it seems as though optimism around the return to office or tech companies has been building, layoff has come through, and some of the companies are mandating more in person office time. Tom, great to hear about the lease this morning, and you guys have additional tech exposure in your portfolio. So, can you just talk about expectations with respect to leasing activity amongst tech tenants and whether you're seeing kind of any shift in their preference to be in New York versus their more traditional footprint on the West Coast?

偉大的。這非常有幫助。然後，圍繞重返辦公室或科技公司的樂觀情緒似乎一直在增強，裁員已經完成，一些公司要求增加親自辦公時間。湯姆，很高興今天早上聽到租賃的消息，你們的投資組合中還有更多的科技投資。那麼，您能否談談對科技租戶租賃活動的期望，以及您是否發現他們對紐約的偏好與他們在西海岸的傳統足跡相比有任何轉變？

Well, I'll give you two examples. The lease that we just signed at 1350 Broadway for full floor of 24,000 square feet, that's a tech firm. And that represents growth by the expansion by them. The other tenant I mentioned that's looking to expand at Empire State Building during COVID. They had given us shed some space elsewhere outside of our building.

好吧，我給你舉兩個例子。我們剛剛在百老匯 1350 號簽署了 24,000 平方英尺的整層租約，那是一家科技公司。這代表著他們的擴張所帶來的成長。我提到的另一位租戶希望在新冠疫情期間擴大帝國大廈。他們在大樓外的其他地方給了我們一些空間。

Now looking back and saying, we want our employees in the office and they want to be in the office. And they all deserve to have desks, and they want to have desks. And so they're looking at an expansion with us by a fairly significant amount, more than doubling their size. So those are two very good examples of what we're seeing in the tech space.

現在回想起來，我們希望我們的員工在辦公室，他們也想在辦公室。他們都應該擁有辦公桌，他們也想擁有辦公桌。因此，他們正在考慮與我們一起進行相當大的擴張，將其規模擴大一倍以上。這是我們在科技領域看到的兩個非常好的例子。

And look, as you know, our rent role is very diversified. We're not focused on one single industry. We attract tenants from all industry and the examples I give and the commentary I just gave about that potential expansion tenant in Empire State, but we're hearing that more and more from other tenants there. The fog or the indecisiveness around the work from home, they've moved beyond that. They're making clear plans, definitive plans to place their office and have their employees in the office in New York City.

如您所知，我們的租賃角色非常多元化。我們不專注於單一行業。我們吸引了來自各個行業的租戶，我給出的例子和我剛剛給出的關於帝國州潛在擴張租戶的評論，但我們從那裡的其他租戶那裡聽到了越來越多的消息。在家工作時的迷霧或優柔寡斷，他們已經超越了這一點。他們正在製定明確的計劃，明確的計劃，將他們的辦公室和員工安置在紐約市的辦公室。

And I'll also add two things. I want to be careful on this use of the term tech firm. Both of these companies of which Tom just spoke are highly profitable. They are not startups. They've got very good business models. And so we do, as you know, a real underwriting of these businesses and their viability before we sign a tenant. Our largest tenant, LinkedIn, started as a single floor at the Empire State Building. That was a time when everyone thought they were just another tech startup, and we did the research. We said, no, no, this is a real business with real business growth prospects. So let's be careful. We have not changed our underwriting standards one bit.

我還要補充兩件事。我想謹慎對待科技公司一詞的使用。湯姆剛才談到的這兩家公司都是高利潤的。他們不是新創公司。他們有非常好的商業模式。因此，如您所知，在簽署租戶之前，我們會對這些企業及其生存能力進行真正的承保。我們最大的租戶 LinkedIn，最初是帝國大廈的單層樓。當時每個人都認為他們只是另一家科技新創公司，我們做了研究。我們說，不，不，這是一個真正的業務，具有真正的業務成長前景。所以我們要小心。我們的核保標準沒有絲毫改變。

Number two, New York City is absolutely positively destination for new tech jobs. It's because that's where the employees, the colleagues, the team members want to be. That is a statistic. New York City is alive. It is vigorous. I was in San Francisco on Tuesday and Thursday, excuse me, of last week.

第二，紐約市絕對是新科技工作的理想目的地。這是因為那是員工、同事和團隊成​​員想要成為的地方。這是一個統計數據。紐約市還活著。它是充滿活力的。抱歉，上週我星期二和星期四在舊金山。

There is simply no comparison between the two markets. New York City is popping and the energy is tremendously attractive, not just to recent college grads, but also to people who want to move and locate where there is going to be activity and there's going to be life. As our lead director says, it's where people want to create their lives, meet their future life partners and enjoy life.

這兩個市場根本沒有可比性。紐約市正在蓬勃發展，其活力極具吸引力，不僅對剛畢業的大學畢業生，而且對那些想要搬到有活動、有生活的地方的人來說也是如此。正如我們的首席導演所說，這是人們想要創造自己的生活、結識未來的生活伴侶並享受生活的地方。

And the last thing that I'll say is with regard to this is we see a tremendous interest in us by virtue of tenants' responses to their employees and colleagues' attendance in the office in our buildings. And the tenant who looks to expand at the Empire State Building, they had looked to shed other office spaces. At the same time, they saw the number one location for employee in office participation out of their locations was the Empire State Building. And they said, okay, we want more space there because that's where people show up.

我要說的最後一件事是，透過租戶對其員工和同事出席我們大樓辦公室的反應，我們看到了對我們的巨大興趣。而希望在帝國大廈擴建的租戶則希望放棄其他辦公空間。同時，他們發現，在他們的辦公地點中，員工參與辦公室活動的第一個地點是帝國大廈。他們說，好吧，我們想要更多的空間，因為那是人們出現的地方。

So I think that just to round it out. I want to make sure from a balance sheet perspective, I understand we're not taking additional risk. New York City is definitely the desired location. And our portfolio particularly is attractive on the basis of existing tenants' experiences with our own employees and colleagues

所以我認為這只是為了完善它。我想從資產負債表的角度確保我們不會承擔額外的風險。紐約市絕對是理想的地點。根據現有租戶與我們自己的員工和同事的經驗，我們的投資組合特別有吸引力

Very helpful. Thanks, everyone.

非常有幫助。謝謝大家。

Our next question comes from the line of Camille Bonnel with Bank of America. Please proceed with your question.

我們的下一個問題來自美國銀行的 Camille Bonnel。請繼續你的問題。

Hi, Tom. I wanted to follow-up on your comments around leasing costs being lower because of the strategy you've implemented this year. So looking forward, as you work through leasing these turnkey spaces, I wanted to get a better sense of what's going on in the general market given there are reports that tenant improvements are increasing in Manhattan? Are you seeing these trends too in the portion of the market that you operate in, or is this less of a concern because there's enough demand to continue implementing that turn key solution?

嗨，湯姆。我想跟進您對由於今年實施的策略而導致租賃成本降低的評論。因此，展望未來，當您租賃這些交鑰匙空間時，鑑於有報道稱曼哈頓的租戶改善正在增加，我想更好地了解整體市場的情況？您是否也在您所在的市場部分看到了這些趨勢，或者這不是一個問題，因為有足夠的需求來繼續實施交鑰匙解決方案？

Camille, I would say this. As I mentioned earlier, our average net effective rent has increased by 10% over the past three years, and that factors in the top line gross rents as well as the leasing costs and that's the number to really keep an eye on.

卡米爾，我會這麼說。正如我之前提到的，過去三年我們的平均淨有效租金增加了 10%，這考慮到了總租金和租賃成本，這是真正值得關注的數字。

As I mentioned earlier, and as Tony mentioned, we're moving our rents, we're tightening up on free rent and that's having an impact on improving our net effective rents. We benefit from having built space throughout our portfolio. As I mentioned earlier, we have an inventory of second generation pre-built space that is less expensive to turn it back into service for a new tenant and that helps lower our TI costs, having previously already invested the capital in those spaces.

正如我之前提到的，正如托尼所提到的，我們正在調整租金，我們正在收緊免費租金，這對提高我們的淨有效租金產生了影響。我們受益於在整個投資組合中建立空間。正如我之前提到的，我們擁有第二代預建空間的庫存，將其重新投入為新租戶提供服務的成本較低，並有助於降低我們的TI 成本，因為我們之前已經在這些空間上投入了資金。

And then generally nothing has changed over the last five to six years in terms of what we deliver to tenants by way of full turnkey service. It's always been part of our offering. We deliver pre-built space ready for move in and we deliver turnkey spaces, we're talking to a tenant for a large full floor space for a long-term, we would just custom design and build that space for that tenant.

在過去的五到六年裡，我們透過全套交鑰匙服務向租戶提供的服務總體上沒有任何變化。它一直是我們產品的一部分。我們提供可隨時入住的預建空間，並提供交鑰匙空間，我們正在與租戶長期洽談大型整層空間，我們只會為該租戶定制設計和建造該空間。

So, what we're offering on TI has been pretty consistent, we're benefiting from again having invested capital previously. But all in all, our net effective rent has improved 10% over the past three years. So hopefully that gives better perspective and answer to your question.

因此，我們在 TI 上提供的產品非常一致，我們再次從先前的投資中受益。但總而言之，過去三年我們的淨有效租金提高了 10%。希望這能為您的問題提供更好的視角和答案。

Got it. And shifting to your Observatory business, it continues to show good growth. So, what do you attribute to the lower visitor count versus last year despite having less bad weather days?

知道了。轉向天文台業務，它繼續呈現良好的成長勢頭。那麼，儘管惡劣天氣有所減少，但與去年相比，遊客數量卻減少了，您認為是什麼原因造成的呢？

Tony here. First of all, we did have a shift of Easter into the first quarter of this year and that always produces a shift. So, and last year's comp, Easter was in the second quarter, number one. Number two, we're managing the demand in order to maximize the benefit to the visitor. And we do see that we have from time to time, we cap our attendance. But the biggest shift is from Easter. That's the first piece.

托尼在這裡。首先，我們確實將復活節移至今年第一季度，這總是會產生變化。因此，和去年的比較一樣，復活節在第二季排名第一。第二，我們正在管理需求，以便最大限度地提高訪客的利益。我們確實看到，我們有時會限制我們的出席人數。但最大的轉變是從復活節開始的。這是第一塊。

I will say there's one other piece and that is that there's unquestionably a much lower international traveler presence in New York City this summer, full stop. You can get it from the airlines. Even the New York City Official Travel Bureau will grudgingly acknowledge this. When you look at established venues from the 911 Museum on across New York, Statue of Liberty, you name it, everyone has recognized and commented on this.

我想說還有另一件事，那就是今年夏天紐約市的國際遊客數量無疑要少得多，句點。您可以從航空公司獲得。就連紐約市官方旅遊局也會勉強承認這一點。當你看看紐約各地的 911 博物館、自由女神像等已建成的場館時，每個人都認識到這一點並對此發表評論。

And so, what we see is big domestic demand, which comes with domestic travel pieces. The international demand is not as robust. It is still gathering back strength. And yet what I would draw attention to is we've continued to grow the top-line, we've continued to grow the bottom line and our NOI per cap continues to tower above any other competitor. So, we feel very good about where we are and about what we're doing with our business there.

因此，我們看到的是國內旅遊產品的龐大國內需求。國際需求則沒那麼強勁。它仍在積聚力量。然而，我要提請注意的是，我們的營收和淨利潤持續成長，而且我們的人均 NOI 繼續高於任何其他競爭對手。因此，我們對我們所處的位置以及我們在那裡開展的業務感到非常滿意。

That color is very helpful. And just finally, despite perceptions on how to define quality, your leasing teams continue to define a norm. So, I'm curious to get your views on where you see structural vacancy for your office portfolio. Do you expect to be able to grow your lease percent much further above the 92%, 93% levels today?

這個顏色很有幫助。最後，儘管對如何定義品質有不同看法，您的租賃團隊仍繼續定義一個規範。因此，我很想了解您對辦公室投資組合結構性空缺的看法。您是否期望能夠將租賃率進一步提高到目前 92%、93% 的水平之上？

Camille, we're really well positioned based on all the work that we've done. For the balance of the year, we have about 190,000 square feet of tenant vacates. And the space that we're getting back are full floors, they're consolidated, they're very marketable, some come with outdoor terrace space. So, we're confident that we will be able to lease those spaces. And so that's a modest amount of lease expirations and tenant vacates, and offset by the leasing activity in the pipeline that I mentioned earlier.

卡米爾，根據我們所做的所有工作，我們確實處於有利位置。今年剩下的時間裡，我們有大約 19 萬平方英尺的租戶騰出。我們收回的空間是整層樓，經過整合，非常有市場，有些還帶有室外露台空間。因此，我們有信心能夠租賃這些空間。因此，這是少量的租賃到期和租戶騰出，並被我之前提到的管道中的租賃活動所抵消。

And then in 2025, because again we've done a great job of proactively managing our rent roll, we only have about 162,000 square feet of vacates and 113,000 square feet of undecideds. And that's again, that's against the backdrop of over 820,000 square feet of leasing that we typically have done in the past three years in our Manhattan office portfolio. So, it may fluctuate quarter-to-quarter, but you see the trend that we've been on for the last two and a half years, we're well positioned going from now and into 2025 to continue to make progress on our lease percentage. And as our lease percentage climbs, our occupancy percentage will follow.

然後到 2025 年，因為我們在主動管理租金方面再次做得很好，所以我們只有約 162,000 平方英尺的空置面積和 113,000 平方英尺的未定面積。再說一次，這是在我們過去三年在曼哈頓辦公大樓投資組合中通常進行的超過 820,000 平方英尺的租賃的背景下進行的。因此，它可能會按季度波動，但你可以看到我們過去兩年半的趨勢，從現在到 2025 年，我們處於有利位置，可以繼續在租賃方面取得進展百分比。隨著我們的租賃百分比上升，我們的入住率也會隨之上升。

And I'd add there will always be variations, but when you look at our forward numbers, as Tom described, we do manage and early renewals are a part of this as we as tenants expand, we renew and extend their existing leases. So we're super active on these activities.

我想補充的是，總是會有變化，但是當你查看我們的遠期數據時，正如湯姆所描述的，我們確實進行了管理，並且早期續約是其中的一部分，因為我們作為租戶擴張，我們更新並延長了他們現有的租約。所以我們對這些活動非常積極。

And recognize something else, Camille, we don't wait for tenants' leases to expire to be active. So we do a lot of leasing of tenants who say I've got excess space. So, before they ever get to the point where they want to vacate, we work with them to lease their space while they're still in occupancy directly to a new tenant.

卡米爾，要認識到另一件事，我們不會等到租戶的租約到期才生效。所以我們租了很多租戶，他們說我有多餘的空間。因此，在他們想要搬出去之前，我們會與他們合作，在他們仍在佔用的情況下將他們的空間直接出租給新租戶。

So a lot of work in this regard and a lot of opportunity for us. We're just very, very happy with how the market receives our product and where we go with this.

所以在這方面我們做了很多工作，也為我們帶來了很多機會。我們對市場如何接受我們的產品以及我們的發展方向感到非常非常滿意。

Our next question comes from the line of Dylan Burzinski with Green Street. Please proceed with your question.

我們的下一個問題來自 Dylan Burzinski 與格林街 (Green Street) 的對話。請繼續你的問題。

Thanks for taking the question. Just wanted to touch on the reaffirmation of 2024 FFO guidance. I mean, you guys you're doing this acquisition that's expected to close in 3Q. You guys raise same property cash NOI growth guidance. So just curious sort of on the decision on deciding to reaffirm guidance, given some of those positive characteristics that I just mentioned. I mean, what are some of the offsets to that? I know you guys mentioned G&A possibly being higher. So sort of just curious, you know anything else that we might be missing?

感謝您提出問題。只是想談談 2024 年 FFO 指南的重申。我的意思是，你們正在進行這項收購，預計將在第三季完成。你們提出了相同的房地產現金 NOI 成長指引。鑑於我剛才提到的一些積極特徵，我對重申指導的決定感到好奇。我的意思是，有哪些抵消措施？我知道你們提到 G&A 可能會更高。所以有點好奇，你知道我們可能會遺漏什麼嗎？

Sure. This is Steve here. So, yes, our $0.04 FFO guidance range is meant to capture a variety of scenarios. And some of those live within the Observatory. We have tourism fluctuations and bad weather days to deal with. And our revenue there our NOI -- sorry, is split typically 40% in the first half of the year to 60% in the second half of the year. So even though we're halfway through the year. The Observatory's performance there will have an outsized impact in the second half of the year.

當然。這是史蒂夫。所以，是的，我們 0.04 美元的 FFO 指導範圍旨在捕捉各種情況。其中一些住在天文台內。我們要應對旅遊波動和惡劣天氣。我們的 NOI 收入——抱歉，通常分為上半年的 40% 到下半年的 60%。所以即使我們今年已經過了一半。天文台的表現將對今年下半年產生巨大影響。

As far as the transactions and capital markets activity, if you recall in the first quarter's call, we did note that with the new term loan in the facility buyout and the FSP sale had about a $0.01 dilutive impact on FFO. And there was also about $0.035 -- sorry $3.5 million of onetime items that benefit revenues within the first half of the year that we don't expect to recur in the second.

就交易和資本市場活動而言，如果您還記得第一季的電話會議，我們確實注意到，設施收購中的新定期貸款和 FSP 出售對 FFO 產生了約 0.01 美元的稀釋影響。還有大約 0.035 美元——對不起，350 萬美元的一次性項目在上半年有利於收入，但我們預計下半年不會再出現。

So, with all that in mind, we still feel good about our FFO guidance not changing and sticking to that $0.90 to $0.94 share. As far as G&A, we already had that modeled in our FFO guidance for the year. Just calling it out as a benefit for models for ‘25.

因此，考慮到所有這些，我們仍然對 FFO 指引沒有改變並堅持 0.90 至 0.94 美元的份額感到滿意。就 G&A 而言，我們已經在今年的 FFO 指南中對此進行了建模。只是將其稱為 25 美元模特的福利。

Great. Appreciate the details.

偉大的。欣賞細節。

We will now turn the call back to Tony Malkin, Chairman and CEO, for some closing remarks.

現在，我們將把電話轉回給董事長兼執行長 Tony Malkin，讓其發表一些結束語。

Okay. As we move forward, ESRT's priorities are to lease space, sell tickets to the Observatory, manage the balance sheet and achieve our sustainability goals. These actions together enhance shareholder value.

好的。隨著我們的前進，ESRT 的首要任務是租用空間、銷售天文台門票、管理資產負債表並實現我們的永續發展目標。這些行動共同提高了股東價值。

We are pure play New York City more so now that we have honed our portfolio, four diverse ways to play it. Our office portfolio, top of tier in the deepest market segment, our number one ranked Observatory, our growing everyday street retail and our multifamily platform. We are a future ready portfolio and opportunity ready balance sheet.

我們更純粹地玩紐約市，所以現在我們已經磨練了我們的產品組合，四種不同的遊戲方式。我們的辦公大樓組合、最深市場領域的頂級、我們排名第一的觀景台、我們不斷成長的日常街頭零售和我們的多戶型平台。我們是面向未來的投資組合和麵向機會的資產負債表。

We have options today. We're in a position to take advantage of opportunities created through market disruptions and capital dislocation. We're confident in our team's ability to execute on our goals and drive further growth for our shareholders.

今天我們有選擇。我們能夠利用市場混亂和資本混亂所創造的機會。我們對我們的團隊執行目標並推動股東進一步成長的能力充滿信心。

I want to thank the team on the call today and who people who work every single day incredibly hard. We have confidence in you. And we'll continue to do a great job on behalf of our shareholders.

我要感謝今天參加電話會議的團隊以及每天都非常努力工作的人。我們對你有信心。我們將繼續代表股東做好工作。

I want to take a moment and do a special call out to board member, Grant Hill. The entire company and the Board are in support of our fellow board member, Grant Hill, who's Managing Director of the United States Men's Basketball team in the Paris Summer Olympics. Grant, we wish you all the best. We'll be cheering for you.

我想花點時間特別向董事會成員格蘭特希爾 (Grant Hill) 致意。整個公司和董事會都支持我們的董事會成員格蘭特希爾 (Grant Hill)，他是巴黎夏季奧運會美國男籃的總經理。格蘭特，我們祝你一切順利。我們會為你加油。

Finally, I'd like to thank everybody for the participation in today's call. We look forward for the chance to meet with many of you at non-deal roadshows we'll be going to Europe in the fall, conferences, property tours in the months ahead. Until then, thank you very much for your interest and onward and upward.

最後，我要感謝大家參加今天的電話會議。我們期待有機會在秋季前往歐洲的非交易路演、未來幾個月的會議和房產參觀中與你們中的許多人見面。在此之前，非常感謝您的關注以及不斷進步。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。