Empire State Realty Trust Inc (ESRT) 2024 Q3 法說會逐字稿

Greetings and welcome to the Empire State Realty Trust third quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加帝國州房地產信託 2024 年第三季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It's now my pleasure to turn the call over to Jason McGrath, Senior Associate, Investor Relations. Please go ahead, Jason.

現在我很高興將電話轉給投資者關係高級助理 Jason McGrath。請繼續，傑森。

Good afternoon. Thank you for joining us today for Empire State Realty Trust third quarter 2024 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 investor section of the company's website at esrtreit.com.

午安.感謝您今天加入我們帝國州立房地產信託 2024 年第三季電話會議。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包，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.

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、費用、財務業績以及擬議交易和事件相關的陳述。

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. Empire State Realty Trust assumes no obligation to update any forward-looking statement 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.

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。帝國大廈信託公司不承擔未來更新任何前瞻性聲明的義務。我們鼓勵聽眾查看該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, Jason, and good afternoon to everyone. Yesterday, we reported ESRT's strong third quarter and year-to-date results. We're happy to discuss today our continued strong leasing, Observatory execution and more on our latest acquisition and capital recycling activities.

謝謝傑森，大家下午好。昨天，我們報告了 ESRT 第三季和年初至今的強勁業績。我們很高興今天討論我們持續強勁的租賃、天文台執行以及我們最新的收購和資本回收活動的更多資訊。

In the third quarter, FFO came in above consensus. Our leasing team again put points on the board with over 300,000 square feet leased in the quarter, our 11th consecutive quarter of leased percentage growth and our 13th consecutive quarter of positive New York City office rent spreads.

第三季度，FFO 的表現超越了共識。我們的租賃團隊再次上榜，本季租賃面積超過 30 萬平方英尺，這是我們連續第 11 季的租賃百分比成長，也是我們連續第 13 季紐約市辦公室租金利差為正值。

Our commercial portfolio leased rate today stands in the mid 90% range on pace for the performance of newly built trophy office assets. The demand for ESRT's top of tier space, well located modernized, amenitized energy efficient, sustainable and unique value proposition remains.

目前，我們的商業投資組合租賃率處於 90% 的中間水平，與新建的辦公資產的表現相當。對 ESRT 頂層空間、位置優越、現代化、設施齊全、節能、可持續和獨特價值主張的需求仍然存在。

ESRT is a destination for the flight to quality in the market today and draws from a deep well of tenant demand in the New York City office market. Tripadvisor's number one attraction in the world, the Observatory continued its performance with third quarter sequentially and year over year growth. We are still below our overall 2019 levels of volume and have plenty of room for upside as visitation levels improve.

ESRT 是當今市場上追求優質品質的目的地，並從紐約市辦公室市場的租戶需求中汲取靈感。作為 Tripadvisor 全球排名第一的景點，天文台繼續保持其業績，第三季環比和同比均實現成長。我們仍低於 2019 年的整體交易量水平，隨著訪問量的提高，還有很大的上升空間。

See page 19 of our quarterly supplemental for further details on our performance year-to-date. Our focus remains to provide visitors with an unmatched customer experience to drive top line growth, manage expenses and never consider our work good enough.

有關我們今年迄今業績的更多詳細信息，請參閱季度補充報告的第 19 頁。我們的重點仍然是為訪客提供無與倫比的客戶體驗，以推動營收成長、管理費用，並且永遠不要認為我們的工作不夠好。

We closed on a substantial portion of our previously announced acquisition of prime retail assets on North 6th Street in Williamsburg and have entered into a contract to acquire an additional retail asset on the street. The Williamsburg story has a long run ahead of value creation as the best retail carter in Brooklyn and one of the best in New York City.

我們完成了先前宣布的威廉斯堡北六街優質零售資產收購的很大一部分，並簽訂了收購該街上額外零售資產的合約。作為布魯克林最好的零售店和紐約市最好的零售店之一，威廉斯堡的故事在價值創造方面長期領先。

Our best-in-class balance sheet has no unaddressed debt maturity until December 2026. The maintenance of a great balance sheet allows ESRT tremendous flexibility to lease and acquire properties and to stand our front foot and create value for our shareholders.

我們一流的資產負債表在 2026 年 12 月之前沒有未解決的債務到期情況。維持良好的資產負債表使 ESRT 能夠非常靈活地租賃和收購房產，並保持領先地位並為股東創造價值。

Tenants look to partner with a financially stable landlord who maintains high standards for service and quality at their assets. We have the lowest leverage of any New York City REIT at a strong liquidity position that is attractive to tenants especially in today's market.

租戶希望與財務穩定、對其資產保持高標準服務和品質的房東合作。我們的槓桿率是紐約市房地產投資信託基金中最低的，流動性狀況強勁，對租戶具有吸引力，尤其是在當今市場上。

ESRT remains the quantitative sustainability leader in the office real estate sector. For more than a decade, we have been happy to deliver on innovation and execution portfolio wide and to help inform policy with practice. As we announced just over one week ago, ESRT's overall GRESB score ranked first amongst all US listed companies in the Americas for the second year in a row.

ESRT 仍然是辦公室房地產領域量化永續發展的領導者。十多年來，我們一直很高興在廣泛範圍內提供創新和執行組合，並透過實踐幫助為政策提供資訊。正如我們一周多前宣布的那樣，ESRT 的 GRESB 總體得分連續第二年在美洲所有美國上市公司中排名第一。

Of course, that means as well we were first in the most competitive peer group. Hats off to the team for all their work on this tremendous accomplishment. Tom, Christina and Steve will provide more detail on our progress in the third quarter and how we plan to accomplish these goals as we finish out the year in the fourth quarter. Tom?

當然，這也意味著我們在最具競爭力的同儕團體中名列前茅。向團隊為實現這一巨大成就所做的一切致敬。湯姆、克里斯蒂娜和史蒂夫將提供有關我們第三季度進展的更多詳細信息，以及我們計劃如何在第四季度結束時實現這些目標。湯姆？

Thanks, Tony, and good afternoon, everyone.

謝謝托尼，大家下午好。

Our office and retail portfolio continued its trajectory of positive absorption in the third quarter. That was our 11th consecutive quarter with increased leased percentage. Today, our Manhattan office portfolio stands at 93.6% leased, an increase of 30 basis points compared to last quarter, up 170 basis points compared to a year ago and an increase of 660 basis points since the fourth quarter of 2021.

我們的辦公室和零售投資組合在第三季繼續保持積極吸收的軌跡。這是我們的租賃百分比連續第 11 季增加。如今，我們曼哈頓辦公室組合的租賃率為 93.6%，較上季增加 30 個基點，較去年同期增加 170 個基點，自 2021 年第四季以來增加 660 個基點。

In the third quarter, our Manhattan office occupancy increased by 40 basis points compared to last quarter and is up 140 basis points year over year to [89.2%]. We also closed our 13th consecutive 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 2.6%.

第三季度，我們曼哈頓辦公室的入住率比上季度增加了 40 個基點，比去年同期成長了 140 個基點。[89.2%]。我們也連續第 13 個季度在曼哈頓辦公室投資組合中實現了正值市價租金利差，新簽訂的和續簽的租約的市場租金價差為 2.6%。

Leasing volumes continued to be strong with 304,000 square feet of total leasing in the third quarter. This brings year-to-date leasing volume to 946,000 square feet. Notable office leases signed during the quarter include an 11-year 27,000 square foot expansion full floor lease with Hecker Fink at the Empire State building, and 11-year 25,000 square foot full floor lease with Dynamic Corp at 1350 Broadway, and 11 year 24,000 square foot new full floor lease with Bloomsbury Publishing at 1359 Broadway, and we signed the leases for 17 pre-book office suites that total 87,000 square feet.

租賃量持續強勁，第三季租賃總量達 304,000 平方英尺。這使得年初至今的租賃量達到 946,000 平方英尺。本季度簽署的著名辦公大樓租賃包括與Hecker Fink 在帝國大廈簽訂的為期11 年的27,000 平方英尺擴建全樓層租賃合同，與Dynamic Corp 在百老匯1350 號簽訂的11 年25,000 平方英尺全樓層租賃合同，以及與Dynamic Corp 在百老匯1350 號簽訂的11 年24,000 平方英尺全樓層租賃合約。為87,000 平方英尺。

We have a healthy pipeline of another 150,000 square feet of leases in negotiation, of which 95,000 square feet are new deals and the balance are renewals. We also have $45 million in incremental cash revenue from signed leases not commenced and free rent burn off is shown on page 10 of our supplemental.

我們還有另外 15 萬平方英尺的租賃正在談判中，其中 95,000 平方英尺是新交易，其餘的是續約。我們還從已簽署但尚未開始的租賃中獲得了 4500 萬美元的增量現金收入，並且我們的補充資料第 10 頁顯示了免費租金消耗。

We continue to attract and retain quality tenants who desire our fully modernized buildings that are located in Midtown Manhattan with convenient access to mass transit, quality amenities, strong balance sheet, great service and leadership and sustainability offered at an accessible price point.

我們繼續吸引和留住優質租戶，他們希望我們位於曼哈頓中城的完全現代化的建築能夠以便利的價格提供便利的公共交通、優質的設施、強大的資產負債表、優質的服務、領導力和可持續性。

As highlighted on page 7 of our investor presentation, we have consistently demonstrated our ability to expand existing tenants. Since our IPO in 2013, we have signed 293 expansion leases for a total of 2.8 million square feet. For the remainder of 2024 and through the end of 2025, our Manhattan office portfolio faces only modest lease expirations.

正如我們的投資者簡報第 7 頁所強調的那樣，我們始終如一地證明了我們擴大現有租戶的能力。自 2013 年首次公開募股以來，我們已簽署 293 份擴建租賃合同，總面積達 280 萬平方英尺。在 2024 年剩餘時間和到 2025 年底，我們曼哈頓的辦公大樓組合僅面臨適度的租賃到期。

We effectively managed our rent role such that we have only 107,000 square feet of known vacates and 6,000 square feet of undecideds remaining for 2024. In 2025, we have 144,000 square feet of known vacates and 118,000 square feet of undecideds. With an average annual leasing activity of 827,000 square feet over the past three years in our Manhattan office portfolio, we are well positioned to boost occupancy in 2025.

我們有效地管理了我們的租金角色，因此到 2024 年我們只剩下 107,000 平方英尺的已知空置面積和 6,000 平方英尺的未確定空置面積。到 2025 年，我們有 144,000 平方英尺的已知空置面積和 118,000 平方英尺的未定空間。過去三年，我們曼哈頓辦公室投資組合的平均年租賃活動為 827,000 平方英尺，我們完全有能力在 2025 年提高入住率。

In the third quarter, we opened a new Empire State Building -- Empire Lounge that includes a multiport court for basketball and pick a ball, full service bar, golf simulators and 250 person town hall presentation area. The ESB club level also features our top of class 15,000 square foot fitness club and private dining offered by States. We've already received excellent feedback from many tenants and brokers.

第三季度，我們開設了新的帝國大廈——帝國休息室，其中包括一個籃球場和選球場、全方位服務酒吧、高爾夫模擬器和可容納 250 人的市政廳演示區。ESB 俱樂部層還設有 15,000 平方英尺的頂級健身俱樂部和各州提供的私人餐飲。我們已經收到了許多租戶和經紀人的良好回饋。

As Tony mentioned, we continued to expand our retail portfolio on North 6th Street in Williamsburg, Brooklyn. With these additions, we own the largest retail frontage located on the two best blocks within the best retail neighborhood in Brooklyn. We're very excited to own these assets and Christina will provide more details.

正如托尼所提到的，我們繼續擴大布魯克林威廉斯堡北六街的零售組合。透過這些新增項目，我們擁有最大的零售店面，位於布魯克林最好的零售街區內的兩個最好的街區。我們非常高興能夠擁有這些資產，克里斯蒂娜將提供更多詳細資訊。

Our multifamily portfolio with occupancy of 96.8% at quarter end continues to perform exceptionally well and benefit from strong market fundamentals and recent property improvements. In summary, in the third quarter, we signed over 304,000 square feet of commercial leases and closed our 11th consecutive quarter with increased lease percentage.

我們的多戶住宅投資組合截至季末的入住率為 96.8%，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。總而言之，第三季度，我們簽署了超過 304,000 平方英尺的商業租賃，並連續第 11 個季度實現租賃百分比上升。

We increased our Manhattan office lease percentage by 170 basis points from a year ago to 93.6%. Our Manhattan office occupancy increased by 140 basis points compared to last year to 89.2%. We had our 13th consecutive quarter with positive mark to market lease spreads in our Manhattan office portfolio. We have a healthy pipeline of leasing activity. We continue to have strong performance in our multifamily portfolio, and we've made a very exciting addition to our retail portfolio in Williamsburg.

我們將曼哈頓辦公室租賃率比一年前提高了 170 個基點，達到 93.6%。我們曼哈頓辦公室的入住率比去年增加了 140 個基點，達到 89.2%。我們的曼哈頓辦公室投資組合已連續第 13 季實現正值市價租賃價差。我們擁有健康的租賃活動管道。我們的多戶型投資組合持續表現強勁，我們在威廉斯堡的零售投資組合中又增添了令人興奮的新成員。

And now, I'll turn the call over to Christina.

現在，我將把電話轉給克里斯蒂娜。

Great. Thanks Tom. In the third quarter, we closed on $143 million of the previously announced $195 million acquisition of prime retail assets on North 6th Street in Williamsburg, Brooklyn with the balance of the acquisition expected to close in the fourth quarter.

偉大的。謝謝湯姆。在第三季度，我們完成了先前宣布的 1.95 億美元收購布魯克林威廉斯堡北六街優質零售資產中的 1.43 億美元，收購餘額預計將在第四季度完成。

In aggregate, the assets comprise approximately 81,000 square feet of retail space leased to high quality tenants including Hermes, Nike, Santander Work Cafe, The North Face, Everlane, Warby Parker, D.S. & Durga, Buck Mason, Chanel, Byredo and Google.

這些資產總共包括約 81,000 平方英尺的零售空間，租賃給高品質租戶，包括 Hermes、Nike、Santander Work Cafe、The North Face、Everlane、Warby Parker、D.S. & Durga、Buck Mason、Chanel、Byredo 和 Google。

These assets are 90% leased with a weighted average lease term of 7.4 years and upon completion of one retailer space under construction expected in late 2025, we will have an initial yield of approximately 4% and yield of just over 6% by 2027 with further mark to market upside over time as leases roll.

這些資產的90% 已出租，加權平均租賃期限為7.4 年，預計在2025 年底建成一個在建零售空間後，我們的初始收益率將約為4%，到2027 年收益率將略高於6% ，進一步隨著租約的延長，隨著時間的推移，市場會上漲。

Notably, this transaction is consistent with the company's strategy to recycle capital and balance sheet capacity in a tax efficient manner from non-core suburban assets into strong New York City assets, and the anticipated cash flow and cash flow growth prospects of these new acquisitions is a significant improvement compared to our prior steady state.

值得注意的是，本次交易符合公司以節稅方式回收資本和資產負債表能力，從非核心郊區資產轉化為強大的紐約市資產的策略，並且這些新收購的預期現金流和現金流成長前景與我們之前的穩定狀態相比，這是一個顯著的進步。

Furthermore, in the third quarter, we entered into an agreement to acquire an additional prime retail asset on North 6th Street in Williamsburg, Brooklyn for approximately $30 million. As with past transactions, we will maintain confidentiality on this asset for now and more details will be disclosed closer to closing that is expected in mid 2025.

此外，在第三季度，我們簽訂了一項協議，以約 3,000 萬美元的價格收購布魯克林威廉斯堡北六街的額外優質零售資產。與過去的交易一樣，我們目前將對該資產保密，預計在 2025 年中期完成交易時將披露更多細節。

We are very pleased to increase our scale in this retail corridor of Williamsburg following our initial 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.

繼2023 年9 月首次收購北6 街的零售資產後，我們很高興擴大威廉斯堡零售走廊的規模，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案並正在進行中。

Pro forma after these acquisitions, ESRT will own the largest prime retail portfolio on the shopping blocks of North 6th Street between Wythe Avenue and Bedford Avenue. Please see slides 19 to 22 in our investor presentation for more color on these transactions and the strength of this retail submarket.

預計完成這些收購後，ESRT 將擁有 Wythe Avenue 和 Bedford Avenue 之間的北 6 街購物街區最大的優質零售投資組合。請參閱我們的投資者簡報中的投影片 19 至 22，以了解有關這些交易和該零售子市場實力的更多資訊。

In a market that continues to have relatively limited high quality investment opportunities given the dislocation in capital markets, we are very pleased to execute on these transactions. Going forward, we will continue to focus on investment opportunities with attractive upside potential.

鑑於資本市場的混亂，高品質投資機會仍然相對有限，我們非常高興能夠執行這些交易。展望未來，我們將繼續關注具有有吸引力的上升潛力的投資機會。

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 5.3 years. In August, we entered into interest rate swap agreements that will fix the SOFR component of our $95 million unsecured term loan facility over its duration to 3.3%, effective March 2025 when the previous swap agreement expires.

截至季末，該公司未償債務總額為 23 億美元，加權平均利率為 4.27%，加權平均到期期限為 5.3 年。8 月，我們簽訂了利率掉期協議，將我們9,500 萬美元無擔保定期貸款融資中的SOFR 部分在其存續期內固定為3.3%，該協議於2025 年3 月之前的掉期協議到期時生效。

We continue to manage our balance sheet in a proactive manner with 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 5.2 times net debt to EBITDA.

我們繼續以積極主動的方式管理我們的資產負債表，流動性強勁，無浮動利率債務風險，債務到期時間表良好，槓桿率是紐約市所有重點房地產投資信託基金中最低的，淨債務與EBITDA的5.2 倍。

As we have said for many years, we are prepared to increase leverage as logical to take advantage of value opportunities to grow our business. We expect leverage to tick up modestly in the coming quarters, trending towards 6 times net debt to EBITDA with the closing of our recent acquisitions and after we utilize cash from the unsecured notes offering earlier in 2024 to pay down maturing debt in March 2025.

正如我們多年來所說，我們準備增加槓桿，以利用價值機會來發展我們的業務。我們預計未來幾季槓桿率將小幅上升，隨著我們最近收購的完成以及我們利用2024 年初發行的無擔保票據中的現金償還2025 年3 月到期的債務後，淨債務與EBITDA 的比率將趨向於6 倍。

Now, I'll turn the call over to Steve to discuss third quarter results and our outlook for the remainder of 2024.

現在，我將把電話轉給 Steve，討論第三季業績以及我們對 2024 年剩餘時間的展望。

Thanks, Christina. For the third quarter of 2024, we reported core FFO of $69 million or $0.26 per diluted share. Same store property cash NOI, excluding lease termination fees increased 5.2% year-over-year, primarily driven by higher revenues from cash rent commencement and partially offset by increases in operating expenses.

謝謝，克里斯蒂娜。我們報告 2024 年第三季的核心 FFO 為 6900 萬美元，即稀釋後每股 0.26 美元。同店物業現金 NOI（不包括租賃終止費）年增 5.2%，主要是由於現金租金開始帶來的收入增加，但部分被營運費用的增加所抵銷。

Included in the year-over-year net increase was approximately $1.7 million of non-recurring revenue items comprised primarily of bad debt recovery from a prior tenant and rental revenue generated from a short-term lease agreement. When adjusted for these non-recurring items, same store cash NOI excluding lease termination fees increased by approximately 2.6%.

年比淨成長中包括約 170 萬美元的非經常性收入項目，主要包括前租戶的壞帳回收和短期租賃協議產生的租金收入。在這些非經常性項目進行調整後，不包括租賃終止費用的同店現金 NOI 增加了約 2.6%。

Moving to our Observatory business. We generated net operating income of $30 million in the third quarter, approximately 6% higher year-over-year. Observatory expense was $9.7 million in the third quarter. Year to date, net operating income for the Observatory was $71 million, an increase of approximately 6% year-over-year.

轉向我們的天文台業務。第三季我們實現淨營業收入 3,000 萬美元，較去年同期成長約 6%。第三季天文台費用為 970 萬美元。年初至今，天文台的淨營業收入為 7,100 萬美元，年增約 6%。

Now, onto our outlook for 2024. We raised the midpoint of our core FFO guidance for 2024 to $0.93 per fully diluted share and within this the key assumptions are as follows. Same store cash net operating income excluding lease termination fees for the commercial portfolio to range from 3% to 4% relative to 2023 levels. This represents a 200 basis point increase at the midpoint.

現在，展望 2024 年。我們將 2024 年核心 FFO 指引的中點上調至完全稀釋每股 0.93 美元，其中關鍵假設如下。商業組合的同店現金淨營業收入（不包括租賃終止費）相對於 2023 年的水準為 3% 至 4%。這意味著中點上漲了 200 個基點。

The increase is primarily driven by the non-recurring revenue items which drove this quarter's 5.2% year-over-year increase as well as higher than initially forecast tenant expense reimbursements. And this is partially offset by a rise in operating expenses related to the timing of a number of repair and maintenance projects that we now expect in the fourth quarter.

這一增長主要是由非經常性收入項目推動的，該項目推動本季同比增長 5.2%，以及高於最初預測的租戶費用報銷。這被我們現在預計在第四季度進行的一些維修和維護項目的時間相關的運營費用的增加所部分抵消。

We now guide to an approximate 8% increase year-over-year in same store property operating expenses. We now assume commercial occupancy of 88% to 89% by year end 2024, an increase of 100 basis points at the low end of our range. We expect 2024 Observatory NOI to be approximately $96 million to $100 million, maintaining our midpoint at $98 million while tightening the overall range and average Observatory expense is of approximately $9 million per quarter.

我們現在預計同店物業營運費用將年增約 8%。我們現在假設到 2024 年底商業入住率將達到 88% 至 89%，比我們範圍的低端增加 100 個基點。我們預計 2024 年天文台 NOI 約為 9,600 萬至 1 億美元，將中點維持在 9,800 萬美元，同時收緊整體範圍，平均天文台費用約為每季 900 萬美元。

Our guidance range takes into account variability in our Observatory results due to tourism fluctuations and bad weather in the balance of the year as well as all capital markets and transaction activity announced year to date.

我們的指導範圍考慮了由於旅遊波動和今年剩餘時間的惡劣天氣而導致的觀測站結果的變化，以及年初至今宣布的所有資本市場和交易活動。

Also included within our FFO guidance range is 2024 G&A of approximately $70 million, which reflects costs associated with our additional SEC filings, the impact of the recent NEO promotions and the accelerated recognition of certain non-cash stock-based compensation expense as a result of executives reaching or approaching retirement eligibility.

我們的 FFO 指導範圍還包括約 7000 萬美元的 2024 年一般管理費用，這反映了與我們額外向 SEC 備案相關的成本、最近 NEO 促銷的影響以及由於以下原因加速確認某些非現金股票補償費用達到或接近退休資格的高階主管。

We will provide our formal outlook for 2025 on our fourth quarter earnings call but do believe it is important to note a few items that we expect to have an adverse net impact on 2025 FFO of approximately $0.05. These include positive net impact from the acquisition of Williamsburg retail assets compared to the loss of FFO contribution from the disposition of First Stamford Place.

我們將在第四季度財報電話會議上提供對 2025 年的正式展望，但確實認為，重要的是要注意一些項目，我們預計這些項目將對 2025 年 FFO 產生約 0.05 美元的不利淨影響。其中包括與處置 First Stamford Place 造成的 FFO 貢獻損失相比，收購威廉斯堡零售資產的正面淨影響。

Adverse net impact from the aggregate capital movements between the private placement notes issuance earlier in 2024 at a higher interest rate, pay down in March 2025 of $100 million of maturing debt and $120 million currently drawn on our revolver and foregone interest income from the cash deposits following various uses of cash including the recent $195 million all cash acquisition.

2024 年初以較高利率發行私募票據、於2025 年3 月償還1 億美元到期債務以及目前從我們的左輪手槍中提取的1.2 億美元以及放棄現金存款利息收入之間的總資本流動產生的不利淨影響現金的各種用途，包括最近 1.95 億美元的全現金收購。

And as noted last quarter, an adverse impact from the previously mentioned recognition of non-cash stock-based compensation expense of awards granted to executives that are nearing retirement eligibility. Again, we will provide additional detail on our 2025 outlook when we report our full year results.

正如上季所指出的，前面提到的承認授予接近退休資格的高階主管的非現金股票薪酬費用的不利影響。同樣，我們將在報告全年業績時提供有關 2025 年展望的更多詳細資訊。

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

這樣，我們現在將電話轉回接線生進行問答環節。操作員？

(Operator Instructions) Steve Sakwa, Evercore ISI.

（操作員說明）Steve Sakwa，Evercore ISI。

Great, thank you. Good afternoon. Maybe starting off with Tom Durels, I'm just curious the conversations you're having with tenants. And I'm just wondering if there's any increase in urgency or desire to come to you guys on renewals like earlier.

太好了，謝謝。午安.也許從湯姆杜雷爾開始，我只是好奇你與租戶的對話。我只是想知道是否有任何增加的緊迫感或渴望像之前一樣向你們續約。

I'm just trying to get a sense for the tightening of the market. You guys have done a good job pushing up your occupancy and percent leased. And I'm just wondering if things are getting a little bit tighter for tenants and how they're thinking about renewals.

我只是想了解市場的緊縮情況。你們在提高入住率和租賃百分比方面做得很好。我只是想知道租戶的情況是否變得更加緊張以及他們如何考慮續約。

Yeah. We actually have been working on early renewals. HNTB is a good example that we extended their lease term by five years in connection with a lease that we did that we took back space with them, a lease to Kaplan, Hecker and then extended HNTB's lease term. And so, we're always proactively managing our rent role, and we are seeing examples of that and that's good one.

是的。事實上，我們一直在努力儘早續訂。HNTB 就是一個很好的例子，我們將他們的租賃期限延長了五年，我們收回了他們的空間，租給了 Kaplan、Hecker，然後延長了 HNTB 的租賃期限。因此，我們總是積極主動地管理我們的租金角色，我們正在看到這樣的例子，這是一個很好的例子。

In terms of urgency, I think that we're seeing is that tenants recognize that there are few and fewer choices of quality properties, quality spaces with quality landlords. And that's why we're seeing the positive results. So despite maybe the headlines on the overall stats in the market. I think it's waking for tenants where as they look about the offerings in the marketplace.

就緊迫性而言，我認為我們看到的是，租戶認識到優質房產、優質空間和優質房東的選擇越來越少。這就是我們看到正面成果的原因。因此，儘管可能是市場整體統計數據的頭條新聞。我認為租戶正在醒悟，因為他們正在關注市場上的產品。

There are really few choices with quality product, buildings that are modernized, well amenitized, great location, great extra mass transit and from landlords who have the balance sheet to go execute and deliver on promises. So I think all of that speaks to the results that we've generated steadily over the last 11 quarters.

高品質的產品、現代化的建築、良好的設施、優越的地理位置、良好的額外公共交通以及擁有資產負債表來執行和兌現承諾的房東的選擇確實很少。因此，我認為所有這些都說明了我們在過去 11 個季度中穩步取得的成果。

Great, thanks. Maybe, Tony, just on the Observatory, I know you don't manage necessarily for visitors, but it's interesting to note the last two quarters, the visitors have been down slightly on a year-over-year basis.

太好了，謝謝。東尼，也許就在天文台，我知道你們不一定能吸引遊客，但有趣的是，過去兩個季度，遊客數量比去年同期略有下降。

And I'm just curious, from your perspective, what ultimately gets the visitor growth back up into positive territory? Is it Chinese visitors coming back where they've been noticeably absent? Is it just international tourism? Has it been other competition in New York? What do you think gets the visitor count growing again?

我只是好奇，從您的角度來看，是什麼最終讓遊客成長回到正值？是中國遊客回到了他們明顯缺席的地方嗎？僅僅是國際旅遊嗎？紐約還有其他比賽嗎？您認為是什麼讓訪客數量再次成長？

Well, keep in mind that a major component of the lower performance in the second quarter was that Easter shifted out of that quarter. So that was a theme that we see every time that holiday shifts from one to the next, number one.

好吧，請記住，第二季業績較低的一個主要因素是復活節移出該季度。因此，這是我們每次假期從一個假期轉換到下一個假期時都會看到的主題，這是第一位的。

Number two, throughout New York City, you see softer third quarter tourist visits. And therefore, the thing that will drive increased visitation at the Observatory really will follow the visitor numbers, Steve. We do feel very good that the visitors we have seen have actually opted for special additional components on our scale of what's available to buy. So our net per person is very high.

第二，在整個紐約市，第三季的遊客訪問量有所放緩。因此，推動天文台參觀人數增加的因素實際上將取決於遊客數量，史蒂夫。我們確實感到非常高興，我們看到的參觀者實際上在我們可購買的範圍內選擇了特殊的附加組件。所以我們的人均淨值非常高。

And that, of course, has driven stronger NOI and we have actually, by the way, in China, it was a low number, but yet we see a doubling of our visitors from China. Keep in mind, we don't do the Chinese bus tourist travel at all. We made that break many years ago. We just do independent travelers.

當然，這推動了更強勁的 NOI，順便說一句，實際上，在中國，這個數字很低，但我們看到來自中國的遊客數量翻了一番。請記住，我們根本不提供中國巴士旅遊服務。我們多年前就實現了這項突破。我們只做自由行旅客。

Overall, visitors to New York City, third quarter, softer and at the same time, we're very happy with our performance, with what we've been able to charge and with how we've been able to control expenses with all reservation model.

總體而言，第三季前往紐約市的遊客數量有所減少，同時，我們對我們的表現、我們能夠收取的費用以及我們如何透過所有預訂控制費用感到非常滿意模型。

John Kim, BMO Capital Markets.

約翰金 (John Kim)，BMO 資本市場。

Thank you. So far you've announced or closed $225 million of retail acquisitions in Williamsburg. I think there was an indication Christina is doing more in the region. But just wanted to know how big this can get for Empire State? And how you get from that initial 4% to 6% yield given the lease maturity? Seems like it's pretty long.

謝謝。到目前為止，您已宣布或完成了威廉斯堡價值 2.25 億美元的零售收購。我認為有跡象表明克里斯蒂娜正在該地區做更多的事情。但只是想知道帝國大廈的規模有多大？考慮到租賃到期日，您如何獲得最初 4% 至 6% 的收益率？看起來好像還蠻長的。

Sure. So I think we've achieved scale in a short amount of time, initial acquisition of $26 million in September 2023, then $195 million and then this $30 million. So I think we have pretty good scale right now. We will be opportunistic in terms of opportunities that come about from this point on. Have a lot to work with, feel very good about this very prime retail portfolio, especially in a market where there hasn't been a ton available in the marketplace.

當然。所以我認為我們在很短的時間內就實現了規模，2023 年 9 月首次收購了 2600 萬美元，然後是 1.95 億美元，然後是 3000 萬美元。所以我認為我們現在有相當好的規模。從現在開始，我們將對出現的機會持機會主義態度。有很多工作要做，對這個非常優質的零售產品組合感覺非常好，尤其是在市場上還沒有大量可用產品的市場。

The way we get to the increase in yield is burn off of free rent as well as lease up of a vacant space. So those are the key components. And as we have movement, the weighted average lease term is over seven years, but there could be movement in between and below market rents could translate into further upside to the yields that I quoted. So we're very excited about this opportunity. We'll continue to build, feel we have good scale, and we'll see what comes along, but not in a rush to chase anything as always.

我們提高產量的方法是燒掉免費租金以及租賃空置空間。這些是關鍵組件。由於我們有變動，加權平均租賃期限超過七年，但可能會在市場租金之間或低於市場租金之間發生變動，這可能會轉化為我引用的收益率的進一步上漲。所以我們對這個機會感到非常興奮。我們將繼續建設，感覺我們有良好的規模，我們會看看會發生什麼，但不會像往常一樣急於追逐任何東西。

I might just add to that. As we know, and as I think many of the investors and some of the sell side analysts know, until our recent acquisitions, Williamsburg was reasonably undiscovered and under recognized. We don't think that's the case anymore and recent transaction evidence suggests a much higher pricing than at what we bought.

我可能會補充一點。據我們所知，而且我認為許多投資者和一些賣方分析師都知道，在我們最近的收購之前，威廉斯堡還沒有被發現，也沒有得到充分認識。我們認為情況不再如此，最近的交易證據表明價格比我們購買時高得多。

So we want to be mindful. And don't forget our goal here was to participate in our capital recycling and we're very happy with where we've ended up and we'll exercise discipline as we look forward.

所以我們要保持警惕。不要忘記我們的目標是參與我們的資本回收，我們對我們的最終結果感到非常滿意，我們將在展望未來時遵守紀律。

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

Great. Thanks. Good afternoon. Just starting on guidance, you guys beat by $0.02 during the quarter with the term fee that only increased the full year guide by $0.01. Were there any specific offsetting factors that you can talk about that kept you from increasing that full year guidance by the same amount as beat during the quarter? Or was there just some level of termination fees that were already built into guidance?

偉大的。謝謝。午安.剛開始指導時，你們在本季就超出了 0.02 美元，而學期費用僅使全年指導增加了 0.01 美元。您是否可以談論任何具體的抵消因素，使您無法將全年指導提高到與本季相同的水平？或者指導中是否已經包含了一定程度的終止費用？

Sure. So to level set, when you adjust out the [$0.025] of [one-times], which are both the lease termination fees, and the other one-time items I called out in the same store cash NOI derived about $0.235 and the midpoint of our guidance implies a $0.22 fourth quarter.

當然。因此，為了設定水平，當您調整[一次性]的[$0.025]（即租賃終止費）和我在同一家商店中調出的其他一次性項目時，現金NOI得出約$0.235和中點我們的指導意味著第四季度為0.22 美元。

So that updated guidance includes considerations that the one-time items will not recur again in the fourth quarter. Also, higher G&As we noted in our previous call related to those recent [NEO] promotions and accelerated recognition of non-cash stock-based comp expense and also the additional costs related to our additional SEC filings.

因此，更新後的指導意見包括考慮到一次性項目將不會在第四季度再次出現。此外，我們在先前的電話會議中註意到，與最近的 [NEO] 促銷活動和非現金股票補償費用的加速確認以及與我們額外的 SEC 備案相關的額外成本有關的一般費用和費用增加。

Also keep in mind that there's that modest solution we noted to expect in 2024 as a result of the capital markets and transaction activity. And then keep in mind too that we leave room in our FFO guidance for variability in observatory performance given the fourth quarter contains a larger amount of NOI relative to earlier quarters.

請同時記住，由於資本市場和交易活動的影響，我們預計 2024 年會出現適度的解決方案。然後還要記住，鑑於第四季度相對於前幾季包含的 NOI 數量較多，我們在 FFO 指南中為天文台績效的可變性留出了空間。

Great. That's helpful and leads me into the second question, which is just, I wanted to ask on the transaction side, I think there's a little bit of concern around the dilution associated with the sale for Stanford and purchase of Williamsburg at a much lower cap rate.

偉大的。這很有幫助，讓我想到了第二個問題，我想在交易方面問，我認為人們對與出售史丹佛大學和以低得多的上限利率購買威廉斯堡相關的稀釋感到有點擔憂。

So just wanted to ask about any other specific opportunities you guys might be pursuing and maybe just get any thoughts on whether you'll look to balance these purchases out with transactions with higher going in yields or is this mid single-digit yield? What we should expect from you guys going forward?

因此，我只是想問一下你們可能正在追求的任何其他具體機會，也許只是想知道你們是否會考慮透過收益率較高的交易來平衡這些購買，還是這個中等個位數的收益率？我們對你們未來該期待什麼？

Yeah. I think appreciate the question. As we've always noted, this was very much part of our capital recycling initiatives. We started a few years ago and we sold out of non-core suburban assets and we're down to one remaining asset. And in return, we've acquired New York City multifamily and New York City retail and we think that on a cash flow basis, that is NOI after CapEx, much better growth profile and cash flow potential.

是的。我認為很欣賞這個問題。正如我們一直指出的，這是我們資本回收計劃的重要組成部分。我們幾年前就開始了，我們賣掉了非核心郊區資產，只剩下一項剩餘資產。作為回報，我們收購了紐約市的多戶住宅和紐約市的零售業，我們認為在現金流的基礎上，這是資本支出之後的 NOI，更好的成長狀況和現金流潛力。

On the go forward, we will continue to look for deals that have attractive upside when it comes to capital recycling. We think of it more from a fair-trade concept and for a fresh balance sheet capital, we expect to have even further upside a little more opportunistic in perspective, and it very much depends on what presents itself in the marketplace.

展望未來，我們將繼續尋找在資本回收方面具有吸引力的上升空間的交易。我們更多地從公平貿易的概念和新的資產負債表資本角度來考慮它，我們期望從更機會主義的角度來看，會有進一步的上漲，這在很大程度上取決於市場上的情況。

And as we mentioned earlier, there hasn't been a ton. So the opportunity to get very high-quality prime assets with great growth potential over a decade. We feel was very attractive and additive to the ESRT portfolio, we'll continue to look for deals that generate upside.

正如我們之前提到的，還沒有很多。因此有機會獲得非常優質的優質資產，並且在十年內具有巨大的成長潛力。我們認為這對 ESRT 投資組合非常有吸引力和補充，我們將繼續尋找產生上漲空間的交易。

Just to add to Christina's comments, we very much focus on the shift from First Stanford Place in specific and the recycling in general, not just on the FFO NOI metrics, we focus on cash. So we're very comfortable and happy with what we did there and recognize that within the confines of those types of transactions, you need seller certainty for performance, and you need to act within a very compressed time period.

補充一下克里斯蒂娜的評論，我們非常關注第一斯坦福廣場的具體轉變和整體回收，而不僅僅是 FFO NOI 指標，我們專注於現金。因此，我們對在那裡所做的事情感到非常滿意和滿意，並認識到在這些類型的交易範圍內，您需要賣方對績效的確定性，並且您需要在非常壓縮的時間內採取行動。

And on all accounts, we are very, very happy with what we've done as far as what we'll do for the cash over time. And we're thrilled with where we were able to execute. And to further on that -- the fact that really everything we've done so far has been off market, we still continue to work off market.

總而言之，我們對我們所做的事情以及隨著時間的推移我們將如何獲得現金感到非常非常滿意。我們對我們能夠執行的地方感到非常興奮。更進一步說，事實上，我們迄今為止所做的一切實際上都是在市場外進行的，我們仍然繼續在市場外進行工作。

We just have when we look at the deployment of new capital, perhaps we have more flexibility. We can handle uncertainty of execution better and more easily. And we will look for the trade-offs therefore, on those two counts to produce higher returns.

我們只是在考慮新資本的部署時，也許我們有更多的彈性。我們可以更好、更輕鬆地處理執行的不確定性。因此，我們將在這兩個方面尋求權衡，以產生更高的回報。

Michael Griffin, Citi.

邁克爾·格里芬，花旗銀行。

Great, thanks. Just on the leasing pipeline, I'm curious if you can give us any insight into whether or not you might be seeing tenants that were paying some of those higher price point rents, maybe move down into your more affordable range, just given, I think, demand that we've seen for some of those high-80s, triple-digit rents. And then maybe if you can give us a sense where concessions are trending, have you seen maybe an improvement in the concessionary environment or is it still pretty stable relative to recent quarters?

太好了，謝謝。就租賃管道而言，我很好奇您能否向我們提供任何見解，了解您是否可能會看到支付一些較高價位租金的租戶，可能會降低到您更負擔得起的範圍內，只是考慮到，我想想看，我們已經看到了一些 80 年代的三位數租金的需求。然後，如果您能讓我們了解優惠的趨勢，您是否看到優惠環境有所改善，或者相對於最近幾季仍然相當穩定？

Sure. First of all, we've always attracted tenants from really all submarkets. That's every -- all parts of midtown, whether it be Fifth Avenue from the local Penn Station market to Midtown South Times Square submarkets. So we attract tenants from all over. And you look at the quality of tenants that we attract.

當然。首先，我們一直吸引來自各個子市場的租戶。這就是市中心的所有部分，無論是第五大道，從當地的賓州車站市場到中城南時代廣場子市場。所以我們吸引了來自各地的租戶。你看看我們吸引的租戶的品質。

These are tenants that could really afford to pay up and pay anywhere. And they choose our assets for the reasons that we've cited numerous times. Modernized assets, great locations, monetized really at an accessible price point.

這些租戶確實有能力在任何地方付款。他們選擇我們的資產的原因我們已​​經多次引用。現代化的資產、優越的地理位置、真正以可負擔的價格點貨幣化。

The most active part of the market is in that $60 to $80 per square foot range. And that's where we play. We are top of tier. We are the best product, the best services, really the best choice in that price range. And again, that's why we're seeing the excellent results that we are.

市場最活躍的部分是每平方英尺 60 至 80 美元的範圍。這就是我們玩耍的地方。我們是頂級的。我們是最好的產品，最好的服務，確實是該價格範圍內的最佳選擇。再說一遍，這就是為什麼我們能看到如此出色的結果。

Regarding leasing concessions, look, we focus on net effect of rent. We're benefiting from increased rents. This quarter was our highest rent for quarter in the past three quarters. This quarter we had the lowest leasing costs of any quarter for the past three years. And we've had the highest net effective rent this quarter of any quarter in the past three years.

關於租賃優惠，我們關注的是租金的淨效應。我們受惠於租金上漲。本季是我們過去三個季度中租金最高的季度。本季我們的租賃成本是過去三年來最低的。本季我們的淨有效租金是過去三年來任何季度中最高的。

So we're benefiting from past investment in tenant spaces where we built out turnkey and prebuilt tenant spaces that are released and renewed with modest TI and free rent. We definitely pulled back on free rent. If we have a raw space that we need to deliver to a tenant, we are turnkeying. And we've been doing that for easily last five or six years. So that has not changed. But you're seeing our lease cost per square foot per lease year come down because of the reasons I just decided.

因此，我們受益於過去對租戶空間的投資，我們建造了交鑰匙和預建的租戶空間，這些空間透過適度的 TI 和免費租金來釋放和更新。我們確實取消了免費租金。如果我們有需要交付給租戶的原始空間，我們就是交鑰匙工程。過去五、六年來，我們一直在做這件事。所以這並沒有改變。但由於我剛剛決定的原因，您會看到我們每個租賃年每平方英尺的租賃成本下降了。

And then maybe just on the transaction market, obviously, you've been busy with the retail acquisitions in Williamsburg, but are you starting to see any opportunities on the office side that might be a little bit interesting and then maybe going a bit further, would you ever look to provide debt on a property or maybe a JV structure? Or do you think you'll stick to acquiring properties outright if the opportunity comes up?

然後也許只是在交易市場上，顯然，您一直忙於威廉斯堡的零售收購，但是您是否開始在辦公室方面看到任何可能有點有趣的機會，然後可能會更進一步，您是否會考慮為房產或合資企業提供債務？或者您認為如果機會出現，您會堅持直接收購房產嗎？

We're just, as we said so often, omnivorous opportunities of ours and we'll remain that way and we're open to anything that we think will deliver value to shareholders. We've had a number of very interesting conversations with new debt providers, private debt providers.

正如我們經常說的那樣，我們的機會是雜食性的，我們將保持這種狀態，並且我們對任何我們認為能為股東帶來價值的事物持開放態度。我們與新的債務提供者、私人債務提供者進行了許多非常有趣的對話。

We've had conversations about debt positions out in the marketplace. Fundamentally, our goal is to achieve long-term value and that's sort of the big fat pitch is for what we look, where we can really take all of the expertise we have, our expertise in redevelopment to help produce a better outcome than perhaps where a property is or where it's headed presently.

我們已經就市場上的債務狀況進行了對話。從根本上說，我們的目標是實現長期價值，這就是我們所看到的，我們可以真正利用我們擁有的所有專業知識，我們在重建方面的專業知識，幫助產生比可能更好的結果財產所在的位置或目前的方向。

That said, we are constantly on the lookout. We review a lot of different opportunities. We've got a very active investment group and we will be opportunistic.

也就是說，我們一直在尋找。我們審查了很多不同的機會。我們有一個非常活躍的投資集團，我們會抓住機會。

(Operator Instructions) Dylan Burzinski, Green Street.

（操作員指示）Dylan Burzinski，格林街。

Hi guys. Thanks for taking the questions. Just curious, we were looking at lease percentage versus occupy percentage in the ESRT's portfolio and it looks like today the spread between those two is about a little over 100 basis points wide relative to the historical average, which suggests to us that occupancy should continue to grow over time.

嗨，大家好。感謝您提出問題。只是好奇，我們正在研究 ESRT 投資組合中的租賃百分比與佔用百分比，今天看來，相對於歷史平均水平，這兩者之間的差距大約為 100 個基點多一點，這表明我們的入住率應該繼續隨著時間的推移而成長。

But just curious, any sort of guardrails around the timing of when that should start to compress towards the call it high 200 basis points spread range that it has been historically?

但只是好奇，關於什麼時候應該開始壓縮到歷史上所稱的 200 個基點的高利差範圍，有任何形式的護欄嗎？

Well, look, we're focused on increasing a lease percentage and occupancy percentage will follow. But the big picture is we're well positioned. We've laid the groundwork, and we proactively managed our rent roll to increase both our lease percentage and our occupancy percentage into 2025.

好吧，看，我們的重點是提高租賃百分比，入住率也會增加。但總體而言，我們處於有利位置。我們已經奠定了基礎，並積極管理租金，以在 2025 年之前提高租賃百分比和入住率。

You look at the next five quarters, we have about a quarter million square feet of known vacates and that's offset or will be offset by the end of 2025 when over 315,000 square feet of signed leases that are not yet commenced will commence. And so, that will help boost our occupancy percentage in 2025.

看看接下來的五個季度，我們有大約 25 萬平方英尺的已知空置，這將在 2025 年底之前被抵消或將被抵消，屆時將有超過 315,000 平方英尺的已簽署租賃但尚未開始。因此，這將有助於提高我們 2025 年的入住率。

And of course, with the leasing success that we've had over about 830,000 square foot average annual leasing volume over the past three years in our New York City office portfolio. Look, we're well positioned to continue to improve both our lease percentage and occupancy percentage. But I would point to the over 315,000 square feet of leases that are signed, not yet commenced, that will offset the known vacates by the end of 2025.

當然，隨著租賃的成功，過去三年我們紐約市辦公室投資組合的平均年租賃量超過了 83 萬平方英尺。看，我們處於有利位置，可以繼續提高租賃率和入住率。但我要指出的是，已簽署但尚未開始的超過 315,000 平方英尺的租約將在 2025 年底前抵消已知的空置。

Appreciate that detail. And then just one going back to the transactions and appreciate sort of the details and how you guys are looking at those from a cash flow perspective rather than an earnings perspective. But Christina, I think you mentioned part of that yield growth through 2027 on the acquisitions was related to leasing up vacant space, but I think the portfolio today is 90% lease.

欣賞這個細節。然後，只需回到交易並了解一些細節，以及你們如何從現金流的角度而不是收益的角度來看待這些細節。但是克里斯蒂娜，我認為您提到到 2027 年收購的部分收益率增長與租賃空置空間有關，但我認為今天的投資組合 90% 是租賃的。

So just sort of trying to get a sense for where you think stabilized occupancy could be? And then it also sounds like part of the narrative or story around these transactions is potential market rent growth potential. So just sort of wondering if you could provide any details as it related to how you guys are thinking about potential market rent growth for the district retail acquisitions?

那麼，您是否想了解一下您認為穩定的入住率會達到什麼程度呢？而且，圍繞這些交易的敘述或故事的一部分聽起來也像是潛在的市場租金成長潛力。因此，我想知道您是否可以提供任何細節，因為這與您如何考慮地區零售收購的潛在市場租金成長有關？

Sure. On the vacancy point, there's one vacant space and there's one temporary space already in discussion. So we feel really good about it and it's a portfolio that could easily be full less any frictional movement between tenancies.

當然。在空缺位置上，有一個空位，還有一個臨時空位已經在討論中。因此，我們對此感覺非常好，而且這是一個可以輕鬆實現的投資組合，減少了租戶之間的任何摩擦變化。

On the mark to market potential, as with any neighborhood that has experienced very strong growth, the first round is very much getting the retailers in. They come in at a certain rent, and there's still probably work to be done in terms of mix of tenants where they are on the street, size of the box, and as a result there are a number of tenants along the street where they are well below market rents.

就市場潛力而言，與任何經歷過強勁成長的社區一樣，第一輪在很大程度上吸引了零售商的參與。他們以一定的租金進來，在街道上的租戶組合、盒子的大小方面可能仍然有工作要做，因此他們所在的街道上有許多租戶遠低於市場租金。

And so, that below market translates into really good mark to market potential in the coming period, whereby if you have early termination, it's not your traditional, here we have to deal with a vacancy, actually an opportunity to get your space back and re-lease it.

因此，低於市場的水平轉化為未來一段時間內市場潛力的良好標記，如果您提前終止，這不是您的傳統，在這裡我們必須處理空缺，實際上是一個重新獲得空間並重新定位的機會。 -租用它。

So we don't have anything sort of specific on that front, but that's more to answer your question. But the four to six is sort of already known in terms of vacancy that gets leased up temp space, that increases in rent and goes to another tenant and burn off a free rent which is contractual. That help?

因此，我們在這方面沒有任何具體信息，但這更多是為了回答您的問題。但是，四到六人在空置方面已經是眾所周知的，這些空置會租用臨時空間，租金會增加並流向另一個租戶並燒掉合約中的免費租金。那個幫助？

John Kim, BMO Capital Markets.

約翰金 (John Kim)，BMO 資本市場。

Thank you. Flagstar, your second largest tenant, they announced layoffs about a fifth of their employee base. I'm wondering what you think that will have as far as impact on the space they lease with you, and if you expect to see any of that space come back to you?

謝謝。Flagstar，你們的第二大租戶，他們宣布裁員約五分之一的員工。我想知道您認為這會對他們向您租賃的空間產生什麼影響，以及您是否希望看到其中任何空間歸還給您？

Flagstar is on a long-term lease and so, our view is they've got the right team in operation there. I feel a lot of confidence with Steven Mnuchin's group at the head, and we will always work proactively with any tenant who wishes to share, to shed space. You see that in our extraordinary income, our non-recurring income, pretty much every quarter.

Flagstar 是長期租約，因此我們認為他們擁有合適的團隊在那裡運作。我對史蒂文·姆努欽 (Steven Mnuchin) 領導的團隊充滿信心，我們將始終積極與任何希望共享、騰出空間的租戶合作。你可以在我們的非凡收入、非經常性收入中看到這一點，幾乎每個季度都有。

So we look at any opportunity to recast our current tenant population even prior to lease expiration the same way we look at early renewals. Tom and his group are super active. Brian Cass super active maintain a very, very close level of contact with our tenants. And anyone doesn't utilize space, we would rather help them and lease directly to a new tenant who will be with us for a long time.

因此，即使在租約到期之前，我們也會尋找任何機會來重新調整目前的租戶群體，就像我們考慮提前續約一樣。湯姆和他的團隊非常活躍。Brian Cass 非常活躍，與我們的租戶保持著非常非常密切的聯繫。任何人都不會使用空間，我們寧願幫助他們並直接租賃給將長期與我們在一起的新租戶。

Tony, while I have you, your company has a very clean structure, clean balance sheet. You don't have any assets, owner joint ventures I believe. How committed are you to wholly owning your assets? Or would you at some point consider joint venture sailing, either retail office or some part of your portfolio?

東尼，雖然我有你，但你的公司有一個非常乾淨的結構，乾淨的資產負債表。我相信你沒有任何資產，所有者合資企業。您對完全擁有自己的資產的決心有多大？或者您會在某個時候考慮合資航行，無論是零售辦公室還是您投資組合的一部分？

We have maintained the cleanliness and our balance sheet and ownership of our assets because we haven't had a reason to do anything else. We certainly haven't needed to sell anything to generate capital. We do believe in this environment in which we currently operate, particularly with interest rates popping back up again.

我們一直保持著清潔度、資產負債表和資產所有權，因為我們沒有理由做任何其他事情。我們當然不需要出售任何東西來產生資本。我們確實相信我們目前的經營環境，特別是在利率再次回升的情況下。

Both candidates for President's programs are inflationary and we believe that will have an adverse impact on interest rates certainly on the longer term, we just believe there'll be more opportunities. And when we need to attract new capital to those opportunities, we will certainly consider joint ventures and people with whom we've spoken to date, we've considered joint ventures.

總統計畫的兩位候選人都存在通貨膨脹問題，我們認為從長遠來看，這肯定會對利率產生不利影響，我們只是相信會有更多機會。當我們需要為這些機會吸引新資本時，我們肯定會考慮合資企業，而迄今為止與我們交談過的人，我們也考慮過合資企業。

On the recycling of the balance sheet, we needed to own those assets 100% when we acquired new assets and that governed a lot of our actions on those activities. As we go forward again, omnivorous opportunities we will look at what we can get, when we can get it and partner logically when there's a reason to do so. With our balance sheet and our available liquidity, it's not something we need to do, it's something we'll do by choice.

在資產負債表的回收方面，當我們收購新資產時，我們需要 100% 擁有這些資產，這決定了我們在這些活動中的許多行動。當我們再次前進時，雜食性機會我們將著眼於我們能得到什麼，什麼時候我們可以得到它，並在有理由這樣做時進行合乎邏輯的合作。就我們的資產負債表和可用流動性而言，這不是我們需要做的事情，而是我們選擇做的事情。

Thank you. We reached end of our question-and-answer session. And I'd like to turn the floor back over to Chairman and CEO, Tony Malkin for some closing remarks.

謝謝。我們的問答環節結束了。我想請董事長兼執行長 Tony Malkin 做總結發言。

Thank you very much everyone, to you for your attendance today. We remain focused on our four priorities, lease space, sell tickets to the observatory, manage the balance sheet, and achieve our sustainability goals, all for the purpose of the creation of shareholder value.

非常感謝大家今天的出席。我們仍然專注於我們的四個優先事項：租賃空間、銷售天文台門票、管理資產負債表以及實現我們的永續發展目標，所有這些都是為了創造股東價值。

We continue to take advantage of opportunities as they arise and are confident in our ability to execute and drive further value for shareholders going forward. Today, Heather Houston, our Senior Counsel, Corporate we believe is delivering a new baby and we wish her the greatest success and happiness. If she isn't in the process right now, we know she's listening in. So good luck, Heather. Thank you all for participation in today's call.

我們將繼續抓住出現的機會，並對我們未來執行和為股東帶來更多價值的能力充滿信心。今天，我們公司的高級法律顧問希瑟休斯頓 (Heather Houston) 即將生下一個新生兒，我們祝她一切順利、幸福快樂。如果她現在不在過程中，我們就知道她正在傾聽。祝你好運，希瑟。感謝大家參加今天的電話會議。

We look forward to the chance to meet with many of you at non-deal road shows, conferences, and property tours in the months ahead onward and upward.

我們期待在未來幾個月內有機會在非交易路演、會議和房產參觀中與你們中的許多人見面。

Thank you. It does conclude today's tele commerce and webcast. Let me disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。它確實結束了今天的電信商務和網路廣播。讓我在這個時候斷開你的線路，祝你有美好的一天。我們感謝您今天的參與。