Essex Property Trust Inc (ESS) 2025 Q1 法說會逐字稿

Good day, and welcome to Essex Property Trust first quarter 2025 earnings call. As a reminder, today's conference call is being recorded. Statements made on this conference call regarding expected operating results and other future events are forward-looking statements that involve risks and uncertainties.

大家好，歡迎參加 Essex Property Trust 2025 年第一季財報電話會議。提醒一下，今天的電話會議正在錄音。本次電話會議上關於預期營運績效和其他未來事件的陳述屬於前瞻性陳述，涉及風險和不確定性。

Forward-looking statements are made based on current expectations, assumptions and beliefs as well as information -- of this time. As a reminder, this conference is being recorded -- results to differ materially from those anticipated. Further information about these risks can be found on the company's filings with the SEC. It is now my pleasure to introduce your host, Ms. Angela Kleiman, President and Chief Executive Officer for Essex Property Trust.

前瞻性陳述是基於當前的預期、假設和信念以及當時的資訊做出的。提醒一下，本次會議正在錄製中——結果可能與預期有重大差異。有關這些風險的更多資訊可以在該公司向美國證券交易委員會提交的文件中找到。現在我很高興介紹您的主持人，埃塞克斯房地產信託公司總裁兼首席執行官安吉拉·克萊曼女士。

Thank you. Ms. Kleiman, you may begin.

謝謝。克萊曼女士，您可以開始。

Welcome to Essex's first quarter earnings call. Today, I will cover highlights from the quarter, our near-term outlook and provide an update on the investment -- Barbara Pak will follow with prepared remarks and Rylan Burns is here for Q&A.

歡迎參加 Essex 第一季財報電話會議。今天，我將介紹本季的亮點、我們的近期展望並提供投資最新情況——Barbara Pak 將隨後發表準備好的講話，Rylan Burns 將在這裡進行問答。

We reported a healthy first quarter with core FFO per share exceeding the midpoint of our guidance range. Additionally, we are pleased to start the year with $305 million in acquisitions in Northern California, which were funded by dispositions in Southern California. This reallocation into higher rent growth markets and further optimization of our operating platform will enable us to generate above-market returns.

我們報告了第一季的健康表現，每股核心 FFO 超過了我們指引範圍的中點。此外，我們很高興在年初在北加州進行了價值 3.05 億美元的收購，這些收購資金來自南加州的處置。重新分配到租金成長更高的市場並進一步優化我們的營運平台將使我們能夠獲得高於市場的回報。

Turning to operating highlights. First quarter results trended slightly ahead of plan with 2.8% blended net effective rent growth and new lease rates improved sequentially from the fourth quarter for the same property portfolio. Two key factors contributed to our performance. First is delinquency improvement to a level close to our historical average. Mostly driven by Los Angeles, where delinquency improved to 1.3% of scheduled rent compared to 3.9% for the same period last year.

談到營運亮點。第一季業績略超計劃，同一房地產組合的混合淨有效租金增長率為 2.8%，新租賃率較第四季度環比提高。有兩個關鍵因素促成了我們的業績。首先是犯罪率改善至接近歷史平均值。主要受洛杉磯的推動，該市租金拖欠率從去年同期的 3.9% 改善至 1.3%。

Second, we executed our operating strategy, which contributed to a notably low turnover rate of 35%, while achieving positive new lease rate growth and stable occupancy levels. Great job, Team Essex on these accomplishments.

其次，我們執行了營運策略，這使得周轉率顯著降低至 35%，同時實現了新租賃率的正增長和穩定的入住率。埃塞克斯隊取得了這些成就，幹得好。

From a regional perspective, in the first quarter, new lease rates turned positive in all 3 major regions, led by Northern California at 1.5%, Seattle at 1.3% and Southern California in last place as expected, at 20 basis points. On a more granular level, San Mateo let the same property portfolio with 4.8% and Oakland led with negative 1.2% in new rate growth, primarily due to elevated supply. Fortunately, Oakland has begun to demonstrate incremental improvement in supplier base and concessions moderate.

從區域來看，第一季三大地區的新租利率均轉正，其中北加州漲幅最大，為1.5%；西雅圖漲幅最大，為1.3%；南加州墊底，符合預期，為20個基點。從更細微的層面來看，聖馬刁出租了同樣的房地產組合，其新房出租率增長率為 4.8%，而奧克蘭則以負 1.2% 的增長率領先，這主要是由於供應增加。幸運的是，奧克蘭的供應商基礎已開始逐步改善，且優惠也適度。

Moving on to the full year outlook. With our solid performance today, under normal circumstances, Essex would consider revising our guidance upward. The lack of clarity on the US and global trade policy have led to macroeconomic uncertainty, including the impact on business investment and job growth. As we navigate this complex environment, we will be nimble with our operating and investment strategy. We remain focused on our objective to maximize revenues and to generate long-term accretion.

接下來是全年展望。鑑於我們今天的穩健表現，在正常情況下，艾塞克斯會考慮上調我們的預期。美國和全球貿易政策缺乏明確性導致宏觀經濟不確定性，包括對企業投資和就業成長的影響。在應對這一複雜環境時，我們將靈活制定營運和投資策略。我們始終專注於實現收入最大化和長期增值的目標。

Ultimately, the West Coast multifamily fundamental is well positioned for a wide range of economic outcomes. Total new housing supply delivery as a percentage of stock in 2025 is exceptionally low at only 50 basis points in the Essex markets and is expected to moderate throughout the year and to decrease further in 2026.

最終，西海岸的多戶型住宅基本面將為廣泛的經濟成果做好準備。2025 年埃塞克斯市場新房供應總量佔庫存的比例極低，僅 50 個基點，預計全年將有所緩和，2026 年將進一步下降。

Accordingly, rent should continue to grow even in a low job growth environment. This downside protection is a key reason why our supply-constrained markets have outperformed over multiple economic cycles. Furthermore, the cost to own versus to rent remains prohibitive at over 2.5 times more expensive. Overall, we remain excited about our portfolio's growth potential as our markets continue to lead in innovation, which provides a solid foundation for economic growth.

因此，即使在就業成長較低的環境下，租金也應該會繼續上漲。這種下行保護是我們供應受限的市場在多個經濟週期中表現優異的關鍵原因。此外，購置成本與租賃成本相比仍高出 2.5 倍以上。總體而言，我們仍然對投資組合的成長潛力感到興奮，因為我們的市場繼續引領創新，這為經濟成長提供了堅實的基礎。

Concluding with a transaction market update. Deal volume in our markets was higher in the first quarter compared to the same period last year, totaling $2.5 billion with cap rates consistently in the mid- to high 4% range. With the onset of broad market volatility in early April, we have limited data points as to the impact of cap rates from ongoing policy changes.

最後以交易市場更新結束。與去年同期相比，我們市場第一季的交易量增加，總額達到 25 億美元，資本化率持續維持在 4% 的中高水準。隨著 4 月初市場普遍波動的開始，我們對持續政策變化對資本化率影響的數據點有限。

However, several deals in our markets have recently been awarded or had contingencies removed, and the valuations have remained consistent with what we've seen over the past year. Our year-to-date transaction activity has been balance sheet neutral, where we have allocated capital into newer assets of markets with the best supply-demand fundamentals and rent growth potential. We look forward to more opportunities to continue our expansion and enhance accretion for our shareholders.

然而，我們市場上的幾筆交易最近已經獲得批准或取消了附帶條件，估值與我們過去一年看到的一致。我們今年迄今的交易活動一直保持資產負債表中立，我們將資本配置到具有最佳供需基本面和租金成長潛力的市場的新資產中。我們期待有更多機會繼續擴張並為股東創造更多價值。

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

說完這些，我將把電話轉給 Barb。

Thanks, Angela. I'll begin with comments on our first quarter results and full year guidance, followed by an update on investments and the balance sheet. I'm pleased to report first quarter core FFO per share exceeded the midpoint of our guidance range by $0.05. There were three factors that led to this outperformance.

謝謝，安吉拉。我將首先對我們的第一季業績和全年指引發表評論，然後介紹投資和資產負債表的最新情況。我很高興地報告，第一季每股核心營運現金流 (FFO) 超出我們預期區間中點 0.05 美元。促成這優異表現的因素有三。

First, our consolidated portfolio performed ahead of plan, primarily driven by same property revenues, which grew 3.4% compared to one year ago. This was 40 basis points ahead of plan, driven by lower delinquency and higher blended net effective rents. Second, our co-investment portfolio exceeded our forecast due to better NOI growth from our joint venture properties and higher preferred equity income. And third, interest expense came in favorable to our forecast. As for our full year outlook, we are reaffirming our same-property growth and core FFO per share guidance ranges.

首先，我們的合併投資組合表現超出計劃，主要受相同房地產收入的推動，與一年前相比增長了 3.4%。這比計劃高出 40 個基點，原因是拖欠率降低和混合淨有效租金上升。其次，由於合資企業的淨營業利潤成長較好以及優先股收益更高，我們的共同投資組合超出了我們的預期。第三，利息支出符合我們的預測。至於我們的全年展望，我們重申我們的同類物業增長和每股核心 FFO 指導範圍。

While we have gotten off to a solid start to the year and are trending slightly ahead of plan, we felt it prudent to get further into the year before making any adjustments to our forecast given the heightened economic uncertainty that has recently developed. In regard to the cadence of same-property revenue growth at the midpoint, we expect the first quarter will be the highest growth followed by the fourth quarter. The second and third quarters are expected to be our lowest year-over-year growth due to tougher delinquency comps compared to the prior year.

雖然我們今年開局良好，並且趨勢略超計劃，但考慮到最近出現的經濟不確定性加劇，我們認為在對預測進行任何調整之前，最好先考慮一下今年的情況。就中點同店營收成長節奏而言，我們預期第一季成長最快，其次是第四季。由於與前一年相比，拖欠率更高，預計第二季和第三季的年成長率將最低。

Turning to investments. We made progress on our growth strategy year-to-date while match funding these investments on a leverage-neutral basis. While these investments are net neutral to our 2025 FFO forecast, they further position the company for long-term outperformance. We'll continue to remain disciplined as we seek further opportunities to deploy capital, utilizing the most attractive capital sources available to maximize core FFO and NAV per share growth while preserving our balance sheet strength. As it relates to the preferred equity portfolio, we received around $27 million in redemptions so far to date.

談到投資。今年迄今為止，我們的成長策略取得了進展，同時以槓桿中性的方式為這些投資提供配套資金。雖然這些投資對於我們 2025 年的 FFO 預測而言是淨中性的，但它們進一步為公司的長期優異表現奠定了基礎。我們將繼續保持紀律，尋求進一步的資本配置機會，利用最具吸引力的資本來源，最大限度地提高核心 FFO 和每股 NAV 的成長，同時保持我們的資產負債表實力。就優先股投資組合而言，迄今為止我們已收到約 2,700 萬美元的贖回。

One of the redemptions was on our watch list that we stopped accruing on over a year ago. Since we were fully redeemed on our investment, we realized $1 million in incremental interest income this quarter that won't repeat next quarter. As it relates to the rest of the year, we expect the remaining $125 million in redemptions will be split evenly between the third and the fourth quarters.

其中一筆贖回款項在我們的關註名單上，我們在一年多前就停止了累積。由於我們的投資已全部贖回，本季我們實現了 100 萬美元的增量利息收入，下個季度不會再發生這種情況。與今年剩餘時間相比，我們預計剩餘的 1.25 億美元贖回額將平均分配在第三季和第四季之間。

Lastly, a few comments on the balance sheet. We are pleased to have refinanced the majority of our 2025 debt maturities earlier this year with the unsecured bond offering in February. Overall, our balance sheet remains a source of strength and has proven durable throughout all economic cycles. With minimal refinancing needs remaining in 2025, access to a variety of capital sources and over $1 billion in available liquidity, we are well positioned.

最後，對資產負債表提出幾點評論。我們很高興在今年稍早透過 2 月發行的無擔保債券為大部分 2025 年到期債務進行了再融資。總體而言，我們的資產負債表仍然是我們實力的源泉，並且已證明其在所有經濟週期中都是持久的。由於 2025 年剩餘的再融資需求很少，並且能夠獲得各種資本來源，並且擁有超過 10 億美元的可用流動資金，我們已做好準備。

I will now turn the call back to the operator for questions.

我現在將把電話轉回給接線員以回答問題。

(Operator Instructions)

（操作員指示）

Nick Yulico, Scotiabank.

加拿大豐業銀行的 Nick Yulico。

First question is just on -- in terms of the guidance, I think the original guidance for the year assumed some modest acceleration on your blended rate growth in the second half versus the first half of the year. Can you just talk about sort of the confidence level today of still achieving that? And if you didn't get that, kind of where it puts you on the range for the year?

第一個問題是關於——就指導而言，我認為今年的原始指導假設下半年的混合利率增長將比上半年略有加快。您能否談談目前實現這目標的信心程度？如果您沒有得到這個，那麼您今年的成績會處於什麼水平？

Hi, Nick, it's Angela here. Thanks for your question. And yeah, you're correct. Our original assumption includes a slight increase or incremental increase in the second half. And our current view is that relationship should remain intact. And keep in mind that we didn't revise our guidance. So what happened here is that first quarter, we outperformed. And the rest of the year, and when you look at our second quarter, blended lease rate growth, it looks more incremental and not like maybe we had some concern. But it's really a function that the first quarter outperformed and we did not change our guidance.

嗨，尼克，我是安琪拉。謝謝你的提問。是的，你是對的。我們最初的假設是下半年會略有增加或逐步增加。我們目前的觀點是，這種關係應該保持完整。請記住，我們沒有修改我們的指導。所以這裡發生的情況是，第一季我們的表現優異。而在今年剩餘時間裡，當你看著我們第二季的混合租賃率成長時，它看起來更多的是增量，而不是我們所擔心的那樣。但這確實是第一季表現優異的功能，我們並沒有改變我們的指導方針。

Okay. And then second question is just on tech. It's something that comes up a lot from investors in terms of the impact on your portfolio. There has been some headlines and concerns about tech sector not growing jobs the way maybe they have been -- they may not grow going forward. Just any perspective, clearly, it's not your entire portfolio, but any perspective on that and the trends you're seeing on the ground related to tech?

好的。第二個問題是關於技術的。就其對投資組合的影響而言，投資者經常提到這一點。一些頭條新聞和擔憂稱科技業不再像以前那樣增加就業機會——未來可能不會再成長。只是任何觀點，顯然，這不是您的整個投資組合，但對此以及您在技術方面看到的趨勢有什麼看法？

Sure thing. No, that's an important data point that we track closely. And when we look at the third-party reports, what we're seeing is that the opening jobs of the top 20 tech companies, that's the most meaningful indicator of the health of that sector. has remained steady and incrementally increasing each month. So it troughed in -- around November, December, but that's typically a seasonally low period. But since then, every month, it's it has increased. And that gives us an indication of the hiring to come. And if we were seeing any softness there, we would have seen either plateau or a decline, and we're not seeing that.

當然可以。不，這是我們密切追蹤的重要數據點。當我們查看第三方報告時，我們看到的是，前 20 家科技公司的空缺職位數量（這是該行業健康狀況最有意義的指標）一直保持穩定並且每月都在增加。因此，它在十一月、十二月左右達到低谷，但這通常是季節性的低谷期。但自此以後，每個月它的數量都在增加。這為我們即將進行的招募提供了指示。如果我們看到任何疲軟跡象，我們就會看到要么停滯要么下降，但我們沒有看到這種情況。

Eric Wolfe, Citibank.

花旗銀行的埃里克·沃爾夫。

Could you just talk about your occupancy strategy in the second quarter? I think typically, you push a little bit more on rate and let occupancy come down a bit. Just wondering if that's also the case this year or if you're trying to be a little bit more conservative than normal given the current environment?

能談談第二季的入住策略嗎？我認為通常情況下，你會稍微提高房價，而入住率則會稍微下降。只是想知道今年是否也是這種情況，或者考慮到當前環境，您是否試圖比平常更保守？

Yeah. No, that's a good question and a good observation on how we think about the business. What we're seeing right now is that the our occupancy strategy is consistent with our approach as we head into the peak leasing season. But it's going to be nuanced as it should be. So for example, in April, we are pushing occupancy in Northern California. In Seattle, it's transitional. It depends on where you are because supply in Seattle is heavier in the first half. We're talking about 60% of the delivery.

是的。不，這是一個很好的問題，也是對我們如何看待業務的一個很好的觀察。我們現在看到的是，我們的入住策略與我們進入租賃旺季的方法是一致的。但它將會變得細緻入微，這是理所當然的。例如，四月份，我們將推動北加州的入住率。在西雅圖，這是一種過渡現象。這取決於您所在的位置，因為西雅圖上半年的供應量較大。我們談論的是 60% 的交付量。

And then, of course, Southern California, we are not -- I'm sorry, Northern California, we're pushing rent, not occupancy. Seattle is in transition. In Southern California, we are still holding or focusing on occupancy. Mostly because of two reasons. Southern California peaks later than northern region. So naturally, that will mean that you start pushing rents at a later point in time. But also Southern California, over 60% of the supply is occurring in the first half. So that is going to ebb and flow as we see the market conditions. But once again, what we're experiencing now in the ground is consistent and the fundamentals are solid.

當然，在南加州，我們不是——對不起，在北加州，我們推的是租金，而不是入住率。西雅圖正處於轉型期。在南加州，我們仍然保持或關注入住率。主要是因為兩個原因。南加州的峰值比北部地區晚。因此，自然而然地，這意味著你會在稍後的時間點開始提高租金。但同樣在南加州，超過 60% 的供應發生在上半年。因此，隨著市場狀況的變化，這種情況也會隨之起伏。但再次強調，我們現在在實地經歷的情況是一致的，基礎是穩固的。

So I guess, in aggregate, in terms of sort of the demand statistics that you look at and the important things you look at thinking through sort of forward demand, whether that's renewal rate or your exposure, like all that looks relatively normal for this time of year. Basically, there's no signs like of incremental linking since you had sort of the tariff announcements or other announcements that have come over the last month.

所以我想，總的來說，就您所看到的需求統計數據以及您所考慮的前瞻性需求的重要事項而言，無論是續訂率還是曝光率，所有這些在一年中的這個時候看起來都相對正常。基本上，自從上個月發布關稅公告或其他公告以來，沒有出現類似增量聯繫的跡象。

No, we haven't seen any signs of weakening or cracks and the tariff announcement has not had any impact. What we're trying to anticipate is all the different policy changes. What does that mean for the rest of the year which is why we've taken a more cautious approach on holding any revisions to guidance until we have better visibility. But it's certainly not because of any concern with what we're seeing on the ground in our markets.

不，我們沒有看到任何減弱或破裂的跡象，關稅公告也沒有產生任何影響。我們試圖預測所有不同的政策變化。這對今年剩餘時間意味著什麼，這就是為什麼我們採取更謹慎的態度，推遲對指導方針的任何修改，直到我們有更好的了解。但這肯定不是因為我們對市場上實際看到的情況感到擔憂。

Steve Sakwa, Evercore ISI.

史蒂夫‧薩誇 (Steve Sakwa)，Evercore ISI。

This is Saket on for Steve. I had a question around blended -- net effective rent growth assumption that you guys have given for second quarter, and it assumes like 20 basis points of acceleration at the midpoint. Can you help us think through that? And also, what are the new lease rates you are achieving in April? You have achieved in April and May and renewals as well?

這是為史蒂夫獻上的 Saket。我有一個關於混合的問題——你們給出的第二季淨有效租金成長假設，它假設中點加速 20 個基點。你能幫助我們思考一下嗎？另外，你們四月的新租賃價格是多少？您在四月和五月取得了什麼成就，也取得了續約嗎？

Let me make sure I'm asking -- or answering your question. You're talking about our second quarter blended of 3% and how we thought about that? Okay. And then, of course, new lease rates. So as far as the second quarter blended lease rate guide of 3%, that is consistent with our original plan because we have not changed guidance. And so I understand that it looks like, oh, there's not that much acceleration because first quarter landed around [28].

讓我確認一下我正在問——或者回答你的問題。您說的是我們的第二季混合成長率為 3%，我們對此有何看法？好的。然後，當然還有新的租賃費率。因此，就第二季 3% 的混合租賃利率指引而言，這與我們最初的計劃一致，因為我們沒有改變指引。所以我明白，看起來，哦，沒有那麼多的加速，因為第一季的[28]。

But keep in mind, our first quarter guidance was 2.5%. And so we had expected or planned for 50 basis points acceleration. And so that the incremental increase is once again not because we have a different view of working on the ground. It's really we outperformed in the first quarter, and we have not changed our guidance. As far as where new lease rates are landing in April, it's consistent with plan. It's consistent with what we saw in around March. And there's nothing there that's unusual.

但請記住，我們第一季的預期是 2.5%。因此，我們預計或計劃加速 50 個基點。因此，增量增加並不是因為我們對實地工作有不同的看法。我們在第一季的表現確實非常出色，而且我們並沒有改變我們的期望。就四月份新的租賃價格而言，這與計劃一致。這與我們在三月左右看到的情況一致。那裡並沒有什麼不尋常的事情。

Makes sense. And can you give us some color around what renewals you are able to achieve in April and what your -- in your rate.

有道理。您能否向我們透露一下您在四月能夠實現的續約情況以及您的費率是多少？

Sure thing. So the renewals once again, very steady. In April, we sent out renewals in the low 4s landed around high 3s, so once again, consistent with plan.

當然可以。因此，續約再次變得非常穩定。4 月份，我們發出的續約數量在 4 出頭左右，最終達到 3 出頭左右，因此再次與計劃一致。

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布、派珀·桑德勒。

Good morning out there. Angela, when there's third-party data providers out there that publish information on how the different companies, different regions are doing. Do you guys participate in helping those entities get their information or are those entities merely scraping data off your website, and thus, you have no control over how they're aggregating their data or how it's being processed.

大家早安。安吉拉，當有第三方資料提供者發布有關不同公司、不同地區經營狀況的資訊時。你們是否參與幫助這些實體獲取信息，或者這些實體只是從你們的網站上抓取數據，因此，你們無法控制他們如何匯總數據或如何處理數據。

Alex, it's a good question. We have actually no control over what gets published, and we do not participate in what the third-party providers generate.

亞歷克斯，這是個好問題。我們實際上無法控制發布的內容，而且我們也不參與第三方提供者產生的內容。

Okay. And then the second question is in Sacramento, they're debating trying to rain in CEQA to encourage development in the urban areas. Just sort of curious your take on this AB 609 on if it seems like finally, CEQA could be reined in and we could see some improvement in investment or there look to be some workarounds where CEQA will not relinquish their power and thus remain the inhibitor that they have been.

好的。第二個問題是在薩克拉門托，他們正在討論嘗試在 CEQA 中降雨以促進城市地區的發展。我只是有點好奇您對 AB 609 的看法，看起來 CEQA 最終可能會受到控制，我們可能會看到投資有所改善，或者看起來有一些變通方法，CEQA 不會放棄他們的權力，從而繼續充當抑製劑。

Yeah, Alex, we view that brand is a positive -- it's going the right direction. I think it will take time for these policies to ultimately get to where they need to go. And I do think that the legislators recognize that regulation does not solve the housing crisis, in fact, it's been proven that regulations actually make things worse. And it's really not tenant advocacy as they think it's really antigrowth. And so once again, we that these conversations are being discussed. We're pleased with that California has begun to move toward a better environment and heading in the right direction. We just need to see how this plays out in the end and how long it takes.

是的，亞歷克斯，我們認為這個品牌是正面的——它正朝著正確的方向發展。我認為這些政策最終達到預期效果還需要時間。我確實認為立法者認識到監管並不能解決住房危機，事實上，事實證明監管只會讓情況變得更糟。這實際上並不是租戶倡導，因為他們認為這實際上是反成長的。因此，我們再次討論這些話題。我們很高興看到加州已經開始朝著更好的環境和正確的方向前進。我們只需要看看最終結果如何以及需要多長時間。

Austin Wurschmidt, KeyBanc Capital Markets.

Austin Wurschmidt，KeyBanc 資本市場。

Maybe just digging in a little bit to the initial assumptions. I think the 3% market rent growth was comprised of Seattle and San Diego being closer to the 4% range. I'm just curious, I know it's still early, but how are kind of the respective regions or markets tracking which you're tracking a little better? And are you tracking a little worse at this point?

也許只是對最初的假設進行一點深入研究。我認為 3% 的市場租金成長包括西雅圖和聖地牙哥，接近 4% 的範圍。我只是好奇，我知道現在還為時過早，但是您所追蹤的各個地區或市場的情況如何？現在你的狀況是不是有點糟了？

Austin, generally speaking, the Northern California, especially San Clara, and San Mateo counties and parts of Seattle, are leading our portfolio performance, and that's consistent with our expectations in Southern California is softer, especially LA. And so we're talking about a range of possibility, you can safely say that the submarkets I mentioned in the Northern region are maybe slightly for the higher end of our range in Southern California, and particularly LA is for the lower range and averaging out to be about the same spot what we will ultimately land.

整體而言，奧斯汀、北加州，尤其是聖克拉拉、聖馬刁縣和西雅圖部分地區，引領我們投資組合的表現，這與我們對南加州（尤其是洛杉磯）表現較弱的預期一致。因此，我們正在談論一系列可能性，您可以肯定地說，我提到的北部地區的子市場可能略微處於南加州範圍的高端，特別是洛杉磯處於較低範圍，平均而言與我們最終落地的位置大致相同。

That's helpful. And then given you guys typically tie your renewal rent growth pretty close to your view on market rent growth. And I think you referenced renewals are still coming in kind of in that mid- to high 3% range. Should that be sort of an indication of how market rents are tracking maybe relative to your initial expectation?

這很有幫助。然後考慮到你們通常將續約租金成長與市場租金成長的看法緊密聯繫起來。我認為您提到的續約率仍然在 3% 的中高範圍內。這是否能顯示市場租金走勢是否與您最初的預期相符？

Yeah, I think that's a fair assumption. And ultimately, if you look at our first quarter performance, which blended came in a little bit higher than expected. And that was, in both cases, both renewal and new lease rates slightly higher. But it wasn't a huge acceleration, right? These were incremental benefits and so I think in the current economy where we had originally forecast a moderate economy, it's playing out that way, slightly better and then you throw in tariffs in the mix, I'm not sure what happens. But we do view that as far as our guidance is concerned, the downside risk is quite low.

是的，我認為這是一個合理的假設。最後，如果你看一下我們第一季的業績，你會發現整體業績比預期略高一些。在這兩種情況下，續租率和新租賃率都略高。但加速度並不是很大，對嗎？這些都是增量效益，所以我認為，在當前經濟狀況下，我們最初預測經濟將溫和發展，情況就是這樣，稍微好一點，然後再加上關稅，我不確定會發生什麼。但我們確實認為，就我們的指導而言，下行風險相當低。

That's helpful. Thanks, Angela.

這很有幫助。謝謝，安吉拉。

Jana Galan, Bank of America.

美國銀行的 Jana Galan。

Congrats on the first quarter results. Angela, when you say you would have raised the guidance kind of barring the macro uncertainty, would you be referring to FFO or the same-store revenue or both?

恭喜第一季的業績。安吉拉，當您說您會提高指導價格以排除宏觀不確定性時，您指的是 FFO 還是同店收入，或者兩者兼而有之？

Yeah, it's Barb. Really more on the FFO side. On the core -- side, we do have a few items like I mentioned, we got some preferred equity income this quarter. that is onetime that is real to the bottom line. So that's really where we would have focused on. I think on same store, we would have waited until more midyear after we get further into peak leasing season.

是的，是 Barb。實際上更多的是在 FFO 方面。在核心方面，我們確實有一些我提到的項目，本季我們獲得了一些優先股收入。這是對底線而言真實的一次。所以這確實是我們要關注的重點。我認為在同一家商店，我們會等到年中，進入租賃旺季之後。

And then switching to transactions. Just kind of curious if we should continue to expect to see trading from Southern California to Northern California and if you're kind of continuing to potentially review any new markets?

然後切換到交易。只是有點好奇我們是否應該繼續期待看到從南加州到北加州的貿易，以及您是否會繼續潛在地審查任何新市場？

Alyana, Rylan here. Yeah, we're really pleased with the execution of our first quarter transactions and we'd love to replicate it. Obviously, we're making all of our investment decisions on a investment-by-investment basis, and it's not always easy to do, but we're pleased with our first quarter transactions. And to the extent that we can drum up additional opportunities to execute on that strategy, we'll continue to pursue it.

Alyana，我是 Rylan。是的，我們對第一季交易的執行情況非常滿意，我們很樂意複製它。顯然，我們所有的投資決策都是根據每項投資的具體情況做出的，這並不總是那麼容易，但我們對第一季的交易感到滿意。只要我們能夠爭取到更多機會來執行這項策略，我們就會繼續推行它。

Any comments on the new markets?

對新市場有何評論？

Yeah, sure, Jana. As far as the new markets are concerned, we, of course, continue to study other markets to make sure that we're making the best long-term decision. But at this point, when you look at the potential upside in our markets, especially with Northern California, just starting its recovery. It's a lot more compelling then to go to markets where you have over 20% to 30% rent growth and with supply headwinds. And so for the foreseeable two to three years, it wouldn't make sense in terms of a trade absent of, of course, a major distress that changes pricing. But based on what we're seeing right now, the majority of the upside is in our markets, and that's why we're so excited about our northern regions.

是的，當然，Jana。就新市場而言，我們當然會繼續研究其他市場，以確保我們做出最佳的長期決策。但目前，當你看到我們市場的潛在上升空間時，尤其是北加州，它才剛開始復甦。那麼，進入租金成長率超過 20% 至 30% 且供應面臨阻力的市場就更有吸引力了。因此，在可預見的兩到三年內，如果沒有重大危機導致價格改變，那麼這種交易就沒有意義。但根據我們目前看到的情況，大部分的上漲空間都在我們市場，這就是我們對北部地區如此興奮的原因。

Jamie Feldman, Wells Fargo.

富國銀行的傑米·費爾德曼。

Great. I want to dig deeper into LA, which sounds like it's slightly disappointing from your initial numbers. Can you just talk about what do you think is going on there? And then just thinking about the wildfire impact. Any thoughts on what that's going to look like for occupancy rents and just kind of behavior patterns for people's housing needs since we're several months out now?

偉大的。我想深入了解洛杉磯，聽起來你的初始數據有點令人失望。你能談談你認為那裡發生了什麼嗎？然後考慮野火的影響。由於現在已經過去幾個月了，您對入住租金以及人們住房需求的行為模式有何看法？

Hi, Jamie. LA is a huge county, and it's more complicated than something we could easily dissect. But the big picture here with LA is that, in order for us to see pricing power with LA, two things need to happen first. Starting with delinquency recovery. delinquency level need to return to near historical average. Right now, we're making great progress, but we're not there yet. I mean delinquency at 1.3% is still well above the historical average in LA And so that's one piece.

你好，傑米。洛杉磯是一個很大的縣，它比我們能夠輕易剖析的要複雜得多。但洛杉磯的整體情況是，為了讓我們看到洛杉磯的定價權，首先需要發生兩件事。從恢復違約率開始，違約率需要回到接近歷史平均值。目前，我們正在取得巨大進展，但尚未到達目標。我的意思是，1.3% 的拖欠率仍然遠高於洛杉磯的歷史平均水平，這是一方面。

And once you get that delinquency close to the long-term average, then we have occupancy, then we can build occupancy. And after that, you can have pricing power. So that's ultimately where we see the path to improvement in LA. As far as the market is concerned, the labor market remains soft. And I think that is a lot of things happening there, and I don't think that's too dissimilar from a national level in terms of just a general at least soft implementing economy.

一旦拖欠率接近長期平均水平，我們就有入住率，然後我們就可以建立入住率。此後，你就擁有了定價權。所以這就是我們最終看到的洛杉磯改進之路。就市場而言，勞動市場依然疲軟。我認為那裡發生了很多事情，而且我認為就總體至少是軟實施的經濟而言，這與國家層面沒有太大不同。

But the film industry has not yet rebounded. And we had hoped that the tax incentives that were implemented would revitalize their industry quicker. But obviously, we didn't plan for it. It was just something that would have been a nice upside for us, and it's just going to take more time.

但電影業尚未復甦。我們原本希望實施的稅收優惠政策能更快地振興他們的產業。但顯然，我們並沒有為此做好計劃。這對我們來說是一件好事，只是需要更多的時間。

Okay. And then in terms of the wildfires, any kind of final thoughts on impact, whether it's potential occupancy rent growth or just submarkets that are more or less in demand?

好的。然後就野火而言，您對影響有什麼最終看法，無論是潛在的入住率租金增長還是需求或多或少的子市場？

Yeah. The wildfire, it's an interesting situation in that the market does have a shorter-term housing, but the wildfire impact is mostly single-family homes. And these are high-end single-family homes, and people are -- and a lot of the people there have other means and would want, say, a three-bedroom or larger. So the unit mix really isn't conducive to what we have offering. And nor are those types of customers would be our typical tenants. And so we really didn't expect to see a meaningful impact on either occupancy or otherwise in LA and which is basically what has happened.

是的。野火是一個有趣的情況，因為市場確實有短期住房，但野火影響的主要是單戶住宅。這些都是高端的獨棟住宅，很多人都有其他經濟能力，他們想要一間三房或更大的房子。因此，單位組合確實不利於我們所提供的服務。這些類型的客戶也不是我們的典型租戶。因此，我們確實沒有想到這會對洛杉磯的入住率或其他方面產生重大影響，但事實也基本如此。

Okay. So I guess, Rylan, with the new development start, do you think this is something we'll continue to see more now that you're seeing supply really drop off across the country. And then also the acquisitions that you've underwritten or others have won, what are people underwriting in terms of growth? It seems like you got some negative leverage deals going on right now? Like what's the typical outlook?

好的。所以我想，Rylan，隨著新開發的開始，您是否認為我們會繼續看到更多這樣的情況，因為您已經看到全國範圍內的供應量確實下降了。那麼，對於您所承保的或其他人贏得的收購，人們在成長方面承保的是什麼？看起來您現在正在進行一些負槓桿交易？典型的觀點是怎樣的？

Jamie, yeah, I'm going to address those one at a time. As it relates to our 7 Southland and South San Francisco project, as you know, our development team underwrites call it, 100 sites a year, and it's been over five years since we found a project that meets our return hurdles. Such that we're getting compensated for taking that development risk. We'd like to find more because when we look out a few years in the future, and we see the supply pipeline, we do think there's a really interesting opportunity here, but we need to remain disciplined and it's just challenging to find deals that really underwrite and meet our return thresholds. But we continue to look, and we're hoping to backfill for others.

傑米，是的，我將逐一解決這些問題。就我們的 7 Southland 和南舊金山專案而言，如您所知，我們的開發團隊每年承保 100 個站點，而自從我們找到一個符合我們的回報障礙的專案以來已經過去了五年多的時間。這樣我們就因為承擔了開發風險而得到了補償。我們希望找到更多，因為當我們展望未來幾年並看到供應管道時，我們確實認為這裡有一個非常有趣的機會，但我們需要保持紀律，找到真正承保並滿足我們的回報門檻的交易是一項挑戰。但我們會繼續尋找，並希望為其他人提供補充。

As it relates to the transaction market, it depends on the submarket and we get some color from brokers about what other participants are underwriting. And it's a wide gamut. But I would say consensus sentiment on NorCal has improved materially over the past year, and we do think that we are -- some deals where people are probably getting a little bit more aggressive on the rent underwriting side.

因為它與交易市場有關，所以它取決於子市場，並且我們從經紀人那裡了解其他參與者承銷的情況。而且它的色域很廣。但我想說，過去一年來，人們對北加州的共識情緒已經有了實質的改善，我們確實認為，在某些交易中，人們在租金承保方面可能會變得更加積極。

So trying to be prudent and take swings where we see a fat pitch. In the past month since April 2, we have not there's been limited data points, but the feedback from the brokers and several deals we're tracking is that there's really been limited changes in terms of market participation, several deals have removed contingencies or first underwriting, it's been consistent with what we've seen year-to-date and over the past year. So we're tracking it closely and expect to be active in the second half of the year.

因此，我們要謹慎行事，在看到好機會時就採取行動。自 4 月 2 日以來的一個月裡，我們沒有獲得有限的數據點，但來自經紀人和我們正在跟踪的幾筆交易的反饋表明，市場參與度方面的變化確實有限，幾筆交易已經取消了意外事件或首次承銷，這與我們今年迄今為止以及過去一年看到的情況一致。因此，我們正在密切跟踪，並預計在今年下半年採取行動。

Okay. Can you quantify at all like some of the deals you've lost out on? What kind of growth people are assuming?

好的。您能否量化您失去的一些交易？人們期望什麼樣的成長？

There's a wide range. So I don't know if I can provide specifics as to what other people are winning deals. But obviously, some of these cap rates, we're assuming that they're underwriting mid-single-digit rent growth in some of these markets.

範圍很廣。所以我不知道我是否可以提供其他人贏得交易的具體資訊。但顯然，我們假設其中一些資本化率能夠支撐某些市場的中等個位數租金成長。

Brad Heffern, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的布拉德‧赫弗恩 (Brad Heffern)。

On Oakland in the prepared comments, you said it started to show improvement. I think a lot of us had sort of given up on that submarket I guess do you think in the medium term, that could turn into a positive contributor or with the outlook over the next couple of years there?

關於奧克蘭，在準備好的評論中，您說它開始顯示出改善。我認為我們中的許多人已經放棄了那個子市場，我想您認為從中期來看，這會成為一個積極的貢獻者嗎？或對未來幾年的前景有什麼影響？

Hi, Brad. Good question there. Yeah, on Oakland, we finally see a light at the end of the tunnel. And Oakland, what we're showing is that 75% of the supply is delivering in the first half. So by mid-year, we expect Oakland to start to revert back to a more normalized market dynamic. I don't think it's going to happen overnight, but it's finally going to turn. And we waited for a long time for this. So we're pretty darn happy about it.

你好，布拉德。問得好。是的，在奧克蘭，我們終於看到了隧道盡頭的光。奧克蘭的情況是，上半年有 75% 的供應量已經交付。因此，到年中，我們預計奧克蘭將開始恢復到更正常的市場動態。我認為這不會在一夜之間發生，但最終還是會轉變。我們為此等待了很長時間。所以我們對此感到非常高興。

Yeah. Okay. And then I saw you dusted off the ATM this quarter. I know it's not a meaningful amount. But I guess, is that supporting development, sort of why do that now and use the cost of equity right now in comparison to the opportunity set?

是的。好的。然後我看到你本季清理了 ATM 機上的灰塵。我知道這不是一個有意義的數字。但我想，這是否支持發展，為什麼現在要這樣做，並使用股權成本與機會集進行比較？

Yeah. This is Barb. You are correct. We did a small issuance. And when we issue equity, we need to have a premium to NAV, and we do need to arbitrage not only the cost of revenue but what we're pairing it up with on the investment side. And as you mentioned, we did start the development. We do have equity needs for that. And so we felt it prudent to take a little bit of a few chips off the table and issue a small amount. But when the stock moved away from us, we stopped issuing. So we will be prudent and match fund for that development that we started.

是的。這是芭布。你是對的。我們進行了小規模發行。當我們發行股票時，我們需要對資產淨值有溢價，而且我們不僅需要套利收入成本，還需要套利我們在投資方面與之配對的成本。正如您所說，我們確實開始了開發。我們確實有股權需求。因此，我們認為，拿出一些籌碼並發行少量資金是明智之舉。但當股票離我們而去時，我們就停止發行了。因此，我們將謹慎行事，並為我們啟動的開發項目提供配套資金。

John Kim, BMO Capital Markets.

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

Good morning. Barb, you gave the best in -- quarters, I think, first and fourth, we're going to be the best on same-store revenue based on delinquency comps. But I was wondering if you could provide the same metrics, best numbers of quarters on blended lease growth for this year?

早安.巴布，我認為，在第一季和第四季度，你給出了最好的成績，根據拖欠率比較，我們的同店收入將是最好的。但我想知道您是否可以提供相同的指標，今年混合租賃成長的最佳季度數字？

Well, the first half of the year, we expect to be at around 3%, and that's the same in the second half of the year. So we don't expect too big a deviation to hit our 3% rent growth all else being equal. We do expect the second and third quarters will be the highest in terms of blended rent growth. So kind of the opposite from what we said on total revenue growth.

嗯，我們預計上半年的成長率在 3% 左右，下半年也是。因此，在其他條件相同的情況下，我們預期偏差不會太大，不會達到 3% 的租金成長目標。我們確實預計第二季和第三季的混合租金成長率將最高。這與我們所說的總收入成長有點相反。

Got it. Okay. And then maybe for Rylan. Can you just talk about the attractiveness of South San Francisco as a multifamily market? Will you be targeting workers in the area and therefore have a more corporate housing or higher corporate housing component to it? And how do rents in that submarket compared to others in the Peninsula?

知道了。好的。然後也許對 Rylan 來說也是如此。您能談談南舊金山作為多戶型住宅市場的吸引力嗎？您是否會將該地區的工人作為目標，從而提供更多的企業住房或更高的企業住房成分？與半島其他地區相比，該子市場的租金如何？

John, great question. We've done a lot of work obviously in the submarket. High-level, close proximity to the largest biotech hub in the world. We do know that three existing institutional-grade apartments in that submarket, do draw a lot of demand from that Oyster Point submarket. But there's a lot of people that can mute up and down the Peninsula as well.

約翰，好問題。顯然，我們在子市場做了很多工作。地理位置優越，靠近世界上最大的生物技術中心。我們確實知道，該子市場中現有的三套機構級公寓確實吸引了來自 Oyster Point 子市場的大量需求。但半島上也有很多人可以保持沉默。

So this is really targeting those types of workers, a little bit higher compensation that are looking for good quality of life, nice community, easy access to the city or down to the Peninsula. And so rents in the submarket are comparable with some of this -- some markets, you see a little bit further down. There is a higher rent market, given the quality of this product, and it's a discount to some of the higher quality submarkets within San Francisco. So again, we feel really comfortable with where we've underwritten rents today on an untrended basis. And we do think, given limited supply outlook over the next several years, there is an opportunity for that rent to move.

因此，這實際上針對的是那些尋求高品質生活、良好社區、方便前往城市或半島的工人，薪水略高一些。因此，子市場的租金與某些市場相當──某些市場的租金略低一些。考慮到該產品的質量，租金市場更高，並且與舊金山一些更高質量的子市場相比有折扣。因此，我們對目前以非趨勢性方式承保的租金感到非常滿意。我們確實認為，鑑於未來幾年供應前景有限，租金有機會上漲。

Will the product being different as far as more corporatizing or furnish departments?

就公司化或配備部門而言，產品是否會有所不同？

No. No, that is not part of our business plan.

不。不，這不是我們商業計劃的一部分。

Adam Kramer, Morgan Stanley.

摩根士丹利的亞當·克萊默。

Just wanted to talk a little bit about the blended rate growth kind of cadence over the course of the year. I think you guys have been really helpful in providing the disclosure in the detail here. The 20 basis points acceleration, I think I have that right from 1Q to 2Q, how does that compare to kind of a typical year? Or how does that compare to history, if we go back in pre-COVID, I don't know if you have those numbers in front of you. But just wondering kind of how does the cadence look this year compared to normal? And what might be some of the drivers here? Is there a bad debt impact here? Or is there anything else that's kind of impacting the sequential cadence here?

我只是想稍微談談今年混合利率的成長節奏。我認為你們在這裡提供詳細的披露確實很有幫助。我認為從第一季到第二季度，20 個基點的加速成長是正確的，與典型年份相比如何？或者與歷史相比如何，如果我們回到 COVID 之前，我不知道您是否有這些數字。但只是想知道今年的節奏與正常情況相比如何？這裡可能存在哪些驅動因素？這裡是否有壞帳影響？或者有其他因素影響這裡的順序節奏嗎？

On the sequential, I probably wouldn't get too concerned about this 20 basis point delta just because I know that it looks like it's de minimis. And once again, I just want to reiterate, it's a function of us not revising guidance for the rest of the year. It's not a commentary or concern about Q2 or thereafter. If you look at our performance last year between first quarter, second quarter, obviously, the spread was larger. But first quarter last year was only [2.2].

從順序上看，我可能不會太擔心這個 20 個基點的增量，因為我知道它看起來很小。我再一次重申，我們不會修改今年剩餘時間的指導方針。這不是對第二季或之後的評論或擔憂。如果你看我們去年第一季和第二季的業績，顯然差距更大。但去年第一季僅[2.2]。

So it's going to vary from quarter to quarter depending on market conditions. But I would point to I encourage you to look at full year expectation. So if you look at our full year expectation, of the blender 3 at midpoint, it's not that different from what the sector is seeing in the market. And I think that's probably a more relevant number than these quarter-by-quarter or month-by-month variations.

因此，它會根據市場情況每季有所不同。但我想指出的是，我鼓勵你看看全年的預期。因此，如果你看一下我們對攪拌機 3 的全年預期，你會發現它與市場上該行業的表現並沒有太大不同。我認為這個數字可能比逐季度或逐月的變化更有意義。

No, that's helpful. And then I just wanted to ask about this kind of commentary around kind of not raising the guidance but feeling really good about the 1Q results maybe I mean a little bit of a theoretical, I guess, contextual question here. But if you're sitting for sitting here in 90 days, right, you have another good 2Q. Just like 1Q, what would you need to see from a macro perspective or some of these other things you track that could kind of give you the confidence that to kind of raise at that point what would kind of need to be different versus where you are today after 1Q?

不，這很有幫助。然後，我只是想問一下這種關於沒有提高指導但對第一季結果感覺非常好的評論，也許我的意思是這裡有一點理論性，我想，背景問題。但如果你在這裡坐了 90 天，那麼你將有另一個好的 2Q。就像第一季一樣，從宏觀角度或您追蹤的其他一些事情中，您需要看到什麼，這些事情可以讓您有信心在那時提高，與第一季之後的現在相比，需要有什麼不同？

Yeah, Adam, that's a good question. And so essentially, this conversation is really what are the range of possibilities. And if the conditions on the ground is consistent with what we had expected, heading into the year, we certainly will have a higher level of confidence in raising -- now here are the variabilities. So for example, on something like a tariff impact. We don't expect that to have too much of an impact on the top line, for example, because with low supply, we don't need a lot of job growth.

是的，亞當，這是個好問題。因此，本質上，這次對話其實就是探討各種可能性的範圍。如果實際條件與我們預期的一致，那麼進入今年，我們肯定會有更高的信心提高——現在存在一些變化。例如關稅影響之類的事情。例如，我們預計這不會對營業收入產生太大影響，因為供應量低，我們不需要大量的就業成長。

But if there is a significant increase in material cost, which will have a direct impact on our operating expense, we're not seeing it yet, but that outcome depends on the timing of that policy and how it gets implemented. So that's why it's so difficult to predict. And you saw that. I know a couple of people published and noted that we pulled our macro guidance on jobs. Once again, it's very opaque on that if we're looking at the BLS data.

但如果材料成本大幅增加，這將對我們的營運費用產生直接影響，我們目前還沒有看到，但結果取決於政策的時間和實施方式。這就是為什麼它如此難以預測。你也看到了。我知道有幾個人發表了文章並指出我們撤回了有關就業的宏觀指導。再次，如果我們查看 BLS 數據，就會發現這一點非常不透明。

And so for example, BLS is not as reliable in -- the participation has fallen. So pre-COVID survey participation was 50% of the company. Today, it's only 30%. And so which is why we started looking at other sources of third-party sources are trying to look at job hiring. So everything would point to that the market and the fundamentals are healthy, and we certainly won't have reservations on raising but for this -- public policy and what that means on the expenses which is why we wanted to just get another few months under our -- behind us to be able to set a number that we can really count on.

例如，BLS 不再那麼可靠——參與率已經下降。因此，新冠疫情之前的調查參與率為公司總人數的 50%。如今，這一比例僅30%。這就是為什麼我們開始尋找其他第三方來源來尋找招募資訊。因此，一切都表明市場和基本面是健康的，我們當然不會對加息有任何保留，但對於這個——公共政策以及這對費用意味著什麼，這就是為什麼我們希望再過幾個月——才能設定一個我們真正可以依賴的數字。

Michael Goldsmith, UBS.

瑞銀集團的麥可‧戈德史密斯。

In the prepared remarks, you said that ultimately, the West Coast multifamily fundamentals are well positioned for a wide range of economic outcomes. Why do you think that? And do you see it better than other markets such as the East Coast or the Sunbelt?

在準備好的發言中，您表示，最終，西海岸的多戶型住宅基本面將為廣泛的經濟成果做好準備。為什麼這麼想？您是否認為它比東海岸或陽光地帶等其他市場更好？

Yeah, that's a great question. One of the reasons for that comment is that the outside risk is lower in our markets, and it's primarily because of supply. And when you have supply and you can see even within the quarter-to-quarter movements, well, it's temporary. Fortunately, with our own supply environment, even if you have a large number that's coming, it only takes us typically a quarter or two to get through it.

是的，這是一個很好的問題。做出這項評論的原因之一是，我們市場的外部風險較低，這主要是因為供應。當你有供應時，你甚至可以看到季度間的變動，嗯，這只是暫時的。幸運的是，憑藉我們自己的供應環境，即使有大量貨物進來，我們通常只需要一兩個季度就能完成。

So in an overall low supply environment, you don't need that much job, which means we're not as reliant on the broad economy and the performance thereof. Relative to the East Coast, from, obviously, we're looking at it from a far, so our peers will have better clarity on that. But New York seems particularly strong because it also has a similar low supply environment.

因此，在整體供應不足的環境下，你不需要那麼多的工作，這意味著我們不再那麼依賴整體經濟及其表現。相對於東海岸，顯然，我們從遠處觀察，所以我們的同行對此會有更清晰的認識。但紐約似乎尤其強勁，因為它也具有類似的低供應環境。

Sunbelt is a little bit harder to sort out, right, because you have a much higher supply. And what that means is the job growth there is required in order for you to have pricing power. And so it's not a view that we don't like the Sunbelt, just a view that at this current environment, it needs a better macroeconomic performance, whereas we don't need that out here in the West Coast.

陽光地帶的治理稍微困難一些，因為那裡的供應量要高得多。這意味著你需要增加就業才能擁有定價權。因此，這並不是說我們不喜歡陽光地帶，只是在當前環境下，它需要更好的宏觀經濟表現，而我們西海岸不需要這樣。

The other anecdote that I'll share with you is that, we had talked about this return to office. And I had said we were in the seventh inning, and there's not going to be -- extra earnings. I don't know Barb is looking at me because I kept calling over time, that's the raw analogy. In any sense, so I would have to modify that in that we actually potentially could have more upside because my comment didn't anticipate companies changing their policy, and we recently learned that Google has changed their remote quality. They originally had grandfathered remote workers, and they have said they basically said, no, that is no longer available.

我要與你們分享的另一個軼事是，我們曾經談論過重返辦公室的事。我說過，我們已經進入第七局，不會有額外的收入。我不知道芭布是否在看著我，因為我一直在打電話，這就是最原始的比喻。無論如何，我必須修改這一點，因為我們實際上可能會有更多的好處，因為我的評論沒有預料到公司會改變他們的政策，而且我們最近了解到谷歌已經改變了他們的遠端品質。他們原本有祖父級的遠距工作者，他們說他們基本上說，不，這不再可用。

And remote workers that have been rather are getting eliminated. And hiring is occurring in our markets. And that, of course, doesn't show up in the BLS or anywhere else as a new job ad. So frankly, at the end of the day, now we're looking at that. There is more upside potential in our West Coast market relative to downside.

而那些遠距工作者則正在被淘汰。我們的市場正在進行招募。當然，這不會在 BLS 或其他任何地方以新招聘廣告的形式出現。所以坦白說，到最後，我們現在正在考慮這個問題。我們的西海岸市場的上行潛力大於下行潛力。

And as a follow-up, have you seen any changes in migration for international residents or any changes in migration trends from domestic markets?

另外，作為後續問題，您是否看到國際居民的移民狀況有任何變化，或國內市場的移民趨勢有任何變化？

Yeah, this is Barb. No, we haven't seen any noticeable changes. We do track our international residents within our portfolio, and it's less than 2%. So we have a small number of residents, but it's remained consistent. New move-ins are consistent with prior years. And so no impact. What I would say on the migration front, what we've noticed is San Francisco and San Mateo have actually turned positive from domestic migration perspective in the last few months. And so that -- and I think that goes to what Angela was talking about the Northern California region is performing slightly better than planned. I think that all kind of triangulates.

是的，這是 Barb。不，我們沒有看到任何明顯的變化。我們確實在我們的投資組合中追蹤我們的國際居民，而且這一比例不到 2%。因此，我們的居民數量不多，但數量保持不變。新入住人數與前幾年一致。所以沒有影響。我想說的是，在移民方面，我們注意到，過去幾個月裡，舊金山和聖馬刁的國內移民情況實際上已經轉為積極態勢。所以 — — 我認為這與安吉拉所說的北加州地區的表現略好於計劃相符。我認為所有類型的三角測量都是如此。

Wes Golladay, Baird.

韋斯·戈拉迪，貝爾德。

Looking at the development schedule, you have about $44 million of other projects. Do you expect to start any of those? And where are they located?

從開發計劃來看，您還有其他大約 4400 萬美元的項目。您是否希望開始其中任何一個？它們位於哪裡？

Hi, Wes. This is Rylan here. Yeah, we have a couple of other projects in the pipeline. I'd say they're still a couple of years away. But they are in Northern California and the Pacific Northwest. So in the markets that we have the highest conviction in future rent growth.

你好，韋斯。我是 Rylan。是的，我們還有其他幾個項目正在籌備中。我想說他們還需要幾年的時間。但它們位於北加州和太平洋西北地區。因此，我們對未來市場租金的成長充滿信心。

Okay. And then looking at the JV, the Wesco joint venture has some debt maturing within the next two years. Will any of that occur this year?

好的。然後看看合資企業，Wesco 合資企業的一些債務將在未來兩年內到期。今年會發生這些事嗎？

Hi, Wes. It's Barb. No, none of that is expected to occur this year. Some will occur in '26 and then the rest of '27.

你好，韋斯。是芭芭拉。不，預計今年這些都不會發生。有些將在 26 年發生，然後在 27 年的剩餘時間發生。

Okay. Thanks, everyone.

好的。謝謝大家。

Haendel St. Juste, Mizuho Securities.

Haendel St. Juste、瑞穗證券。

A couple of quick questions from me. First one is on the -- it looks like the Mesbu asset, you assumed full managerial control of in Oakland this past quarter, I guess, I'm assuming that's a fancy way of saying you bought the asset or exercise an option. So maybe you can add some color on the events that led to this? Was this something that was previously contemplated and perhaps some color on the underwriting cap rate or IRR on that?

我有幾個簡單的問題。第一個是 - 看起來您在上個季度對奧克蘭的 Mesbu 資產進行了全面管理控制，我想，我假設這是一種更貼切的說法，表示您購買了該資產或行使了期權。那麼也許您可以對導致這一事件的原因進行一些說明？這是之前考慮過的事情嗎？也許對承保上限率或 IRR 有影響嗎？

Hi. Haendel. It's Barb. Yeah. So this was the asset where in the fourth quarter, we paid off the senior mortgage -- was going to default and we effectively stepped in and took back property. We had stopped accruing on our preferred equity investment back in 2022 and impaired the property in '23. So we've got a long history as we talked about, Oakland has been a market that suffered for quite some time.

你好。韓德爾。是芭芭拉。是的。因此，這是我們在第四季度償還的優先抵押貸款——即將違約，我們有效地介入並收回了財產。我們早在 2022 年就停止了優先股投資的累積，並在 2023 年對該資產進行了減損。正如我們所討論的，奧克蘭市場有著悠久的歷史，長期以來一直遭受苦難。

We do see light at the end of the tunnel, though, as Angela said, on the supply side. So how we came up with a valuation, though, is we did a third-party assessment on it. Our value add $95 million is around 390 a door, and it's about 30% below replacement cost today. The yield is in -- it's low. It's in the mid-3s, but that's because we have assumed three months of concessions. And once those concessions burn off, we'll be closer to a 5% cap rate.

不過，正如安吉拉所說，在供應方面，我們確實看到了隧道盡頭的曙光。因此，我們對其進行估值的方式是進行第三方評估。我們的附加價值 9500 萬美元，每扇門的價格約為 390 美元，比今天的重置成本低約 30%。收益率很低。目前處於 3 月中旬，但那是因為我們已經做出了三個月的讓步。一旦這些優惠政策實施完畢，我們的資本化率將更接近 5%。

Okay. That's helpful. And then one more maybe on the conversation on capital recycling, selling some assets out of SoCal into NorCal given the better growth outlook that you mentioned. I guess I'm curious how much more appetite there could be for that? How much more exposure perhaps you would want in NorCal, and how do you think about Seattle as another option for reinvesting capital?

好的。這很有幫助。然後，也許還有關於資本循環的討論，鑑於您提到的更好的成長前景，將一些南加州的資產出售給北加州。我想我很好奇人們對此會有多大的興趣？您希望在北加州獲得多少曝光？您認為西雅圖是再投資資本的另一個選擇嗎？

Hi, Haendel. This is Rylan. I mean, as we've been saying over the past couple of years, we feel pretty good about the rent fundamentals in those northern regions. So we'd obviously like to skew the portfolio to capture that Realistically, there's only limited transaction volume that you're able to participate in and/or generate on our own. So we'd like to move that up by a couple of percentage points if we could, all else equal.

你好，韓德爾。這是 Rylan。我的意思是，正如我們過去幾年所說的那樣，我們對北部地區的租金基本面感到相當滿意。因此，我們顯然希望調整投資組合以捕捉現實情況，您能夠參與和/或自行產生的交易量有限。因此，如果可以的話，我們希望在其他條件相同的情況下將這一比例提高幾個百分點。

But it goes back to the broader picture of us not doing deals just to do deals. This has to be FFO accretive over the long run. We're really focused on driving more durable and improving cash flows for our shareholders. So we are out there working to create that opportunity for us. And in the current environment, given really cap rate parity across the vast majority of our markets we think that trade makes a lot of sense. So we're going to continue to actively pursue the increase in those markets that you mentioned.

但這又回到了更廣泛的視角，即我們做交易不只是為了做交易。從長遠來看，這必定會增加 FFO。我們真正專注於為股東帶來更持久的現金流並改善現金流。因此，我們正在努力為我們自己創造這樣的機會。在當前環境下，考慮到我們絕大多數市場的實際資本化利率平價，我們認為這種交易非常有意義。因此，我們將繼續積極追求您所提到的那些市場的成長。

Appreciate that. Actually, if I could squeeze in one more. Just curious on the loss to lease and maybe concession activity across major markets. I would love to get an update.

非常感謝。事實上，如果我能再擠進一個的話。只是好奇主要市場租賃和特許經營活動的損失。我很想得到最新消息。

Sure thing. So it's Angela here. On the concession market, we've seen terrific improvement between fourth quarter to the first quarter. So fourth quarter, we're about one week. And in the first quarter, we're about half of that. And so April level compared to March, it's pretty darn consistent. And as far as the loss of lease is concerned, it also has continued to improve. So just to give you an example for April, current loss lease is about 40 basis points better than last year's level in April.

當然可以。原來是安吉拉在這裡。在特許經營市場，我們看到第四季至第一季之間出現了顯著的改善。因此，第四季大約有一周的時間。而在第一季度，我們的銷售額大約是這個數字的一半。因此，四月份的水平與三月相比，相當一致。而就租賃損失而言，也持續改善。舉個 4 月的例子，目前租賃損失比去年 4 月的水平好約 40 個基點。

Rich Anderson, Wedbush Securities.

里奇·安德森（Rich Anderson），韋德布希證券公司。

So got the negative 0.3% GDP growth for the first quarter. So we're one quarter away to at least a definitional recession, should that turn negative as well? You mentioned how West Coast is better in tougher times because of low supply. But do you -- can you prove that? I mean, have you looked back at recessions and note that there is a very clear in the West Coast, whether it's multifamily or anything, but investing in the West Coast is the place to be if we're in a recession. Is that something you can provide or share?

因此第一季GDP成長率為-0.3%。那麼，我們距離定義上的衰退至少還有一個季度的時間，這也應該變成負面的嗎？您提到西海岸由於供應不足而在困難時期表現更好。但是你能證明這一點嗎？我的意思是，你是否回顧過經濟衰退，並注意到西海岸的情況非常明顯，無論是多戶住宅還是其他什麼，但如果我們處於經濟衰退中，投資西海岸是最好的選擇。您可以提供或分享一些嗎？

Yeah. So Rich, what is the data that's available to all of us is the long-term rent growth and so if you look at the West Coast market and of course, every major region has a slight nuance. But in the Northern region, the long-term CAGR is higher than Southern California. For example, in Southern California is -- mirrors the US with a slightly higher level.

是的。那麼，Rich，我們所有人都可以獲得的數據是長期租金成長情況，所以如果你看看西海岸市場，當然，每個主要地區都有細微的差別。但在北部地區，長期複合年增長率高於南加州。例如，南加州的水平與美國類似，但略高一些。

And so those are CAGRs that's available and proven out. But what I also want to mention as it relates to the potential recession in this year that's been talked about tech which is an important component to our portfolio. That industry has already retrenched and it went through the major layoffs back in early 2023, late 2022. And so it's already repositioned and it's ready. And if you look at, for example, the '08 recession, for example, or even during COVID tech continued higher. So we do view that that's a good anchor for our portfolio, and it's been proven through multiple cycles.

這些都是可用且經過驗證的複合年增長率。但我還想提一下，因為這與今年可能出現的經濟衰退有關，而科技是我們投資組合的重要組成部分。該行業已經裁員，並於 2023 年初、2022 年底經歷了大規模裁員。所以它已經重新定位並且準備就緒。例如，如果你看一下 2008 年的經濟衰退，甚至在新冠疫情期間，科技都持續走高。因此，我們確實認為這是我們投資組合的良好支柱，並且已經通過多個週期得到了證實。

Okay. Great. That's great color. And then maybe for Rylan, the trade from Southern California, Northern California, you guys are sort of one to move from downtown, that's the model. But at what point do you start to look at some of the improving conditions in downtown San Francisco and start to maybe dance a little bit more there than you do. Is that something that's on the radar? Or are you sticking to your sort of guns outside of downtown.

好的。偉大的。顏色真棒。然後也許對 Rylan 來說，從南加州到北加州的貿易，你們是從市中心搬來的，這就是模式。但是什麼時候你會開始關注舊金山市中心的一些改善條件，並開始在那裡比現在跳更多的舞呢？這是雷達上正在關注的事情嗎？或者您是否堅持​​在市中心以外的地方堅持自己的立場。

Hi, Rich. When you say at what point, we've consistently been underwriting all the product that transacts through our market, and that includes some of the urban areas that you're referring to. We've only seen a handful of trades in San Francisco, in particular, as it relates to the Northern California market over the past year or so. And it felt like a lot of that upside was already priced in. Those were transacting at pretty low cap rates. So we've seen better relative value in the Peninsula, but as I said, we're going to be looking all in down our markets, urban suburban and trying to make the best risk-adjusted return investments.

你好，Rich。當您說在什麼時候，我們一直在承保透過我們的市場交易的所有產品，其中包括您所提到的一些城市地區。在過去一年左右的時間裡，我們只看到舊金山的少數幾筆交易與北加州市場有關。而且感覺很多好處已經被計入價格了。這些交易的資本化率相當低。因此，我們看到半島的相對價值更高，但正如我所說，我們將全力關注我們的市場、城市郊區，並努力做出最佳風險調整回報投資。

Julian Blouin, Goldman Sachs.

高盛的朱利安布盧因。

Maybe digging in again in Los Angeles. I appreciate the comments you gave, Angela, around what needs to happen for LA pricing power to improve. But is there a scenario where things actually weaken from here maybe due to tariffs, just given the importance of the ports to the local economy and employment in the region.

也許會在洛杉磯再次挖掘。安琪拉，我很欣賞你針對如何提高洛杉磯定價權所提出的意見。但考慮到港口對當地經濟和就業的重要性，是否存在著關稅而導致情況實際上從現在開始惡化的情況？

Probably as tariff's concerned, it's probably going to be an impact nationalized in all the markets. And more on the cost side than on the top line on the revenue side. And it won't be an eli-specific situation just because our tenant base really isn't port-driven and frankly, the ports are so automated that it's not a we don't expect the employment thereof to have a huge impact on the performance. Now as far as the tariff impact, what we would expect that LA specific the potential offset or benefit is the improvement in delinquency.

就關稅而言，它可能會對所有市場產生國有化影響。而且成本方面的影響比收入方面的影響更大。這不會成為特定於 eli 的情況，因為我們的租戶基礎實際上不是由港口驅動的，坦白說，港口的自動化程度很高，我們不希望其就業對績效產生巨大影響。現在就關稅的影響而言，我們預期洛杉磯具體的潛在抵銷或利益是拖欠率的改善。

And so at least it got -- has that to balance the net impact. And what we're seeing right now as far as the impact on consumers, for example, if we thought that the tariffs would have a negative impact. We're certainly not seeing that because the overall portfolio delinquency has remained steady. And so people are paying. And we're not seeing the consumer weakness that you would have thought if we're in a recessionary environment, for example.

因此至少它可以平衡淨影響。就目前我們看到的對消費者的影響而言，例如，如果我們認為關稅會產生負面影響。我們肯定不會看到這種情況，因為整體投資組合拖欠率一直保持穩定。所以人們付錢。例如，如果我們處於經濟衰退環境中，我們並沒有看到人們所想像的消費者疲軟現象。

Rich Hightower, Barclays.

巴克萊銀行的里奇‧海托爾 (Rich Hightower)。

Out on the West Coast -- I'm going to revisit, I think, an oft-asked question on this call. But just so you can confirm or disconfirm the way that I'm thinking about the blended lease growth numbers for the first quarter and the second quarter. You've done a good job, I think, of sort of stating that the fact that you did not increase guidance doesn't really indicate anything about what you're actually seeing on the ground.

在西岸——我想在這通電話中重新討論一個經常被問到的問題。但只是為了讓您確認或否定我對第一季和第二季混合租賃成長數字的看法。我認為，您做得很好，某種程度上表明了您沒有增加指導這一事實並不能真正說明您實際看到的情況。

It's really just more of a kind of a general risk overlay based on all the other things we've been talking about on this call. So is that effectively true where normally, you did better in the first quarter than you thought. You're not seeing weakness on the ground, which would imply some sort of increase related to the second quarter. And so that's really kind of the way that we all should be thinking about it at this point?

它實際上只是一種基於我們在這次電話會議上討論的所有其他事情的一般風險覆蓋。那麼，這實際上是真的嗎？通常情況下，你在第一季的表現會比你想像的要好。你沒有看到實際的疲軟，這意味著第二季會出現某種成長。那麼這確實是我們現在應該思考的問題嗎？

Yeah. I think the excellent summary. And when I mentioned some of the logistics, for example, April last week, better than the same period last year driven by California. And when we look at occupancy, it compared to, sequentially, it dipped a little bit, but it's also -- that's driven by Seattle because it was unusually high last year. it was 97.4%. So once again, we're not seeing any cracks on the fundamentals and the business is in good shape.

是的。我認為總結得非常好。當我提到一些物流情況時，例如上週四月份，受加州的推動，情況比去年同期更好。當我們查看入住率時，與上一季相比，它略有下降，但這也是由西雅圖推動的，因為去年西雅圖的入住率異常高，為 97.4%。因此，我們再次看到基本面沒有出現任何問題，業務狀況良好。

Okay. That's very helpful. And maybe a topic that we haven't talked about on the call, but the turnover, 35% the first quarter which was normal for the way you guys run the business. But if I'm comparing it to EQR is extraordinarily low 8% number for the first quarter. That's an enormous delta. And so maybe just help those of us who are not in the apartment this day to day, understand what sort of decision-making goes into run new management in that context, just given the huge delta there that is just something that stood out to me.

好的。這非常有幫助。也許這是我們在電話會議上沒有談到的一個話題，但第一季的營業額為 35%，這對你們的經營方式來說是正常的。但如果我將其與 EQR 進行比較，第一季的 8% 這個數字非常低。這是一個巨大的三角洲。因此，也許可以幫助我們這些每天不住在公寓裡的人，了解在那種情況下運行新管理需要做出什麼樣的決策，考慮到那裡的巨大差異，這對我來說是突出的。

Hi, Rich. I think some of the confusion may be definitional. And so even, for example, how we look at blended lease rates is slightly -- is defined -- than some of our peers. And on lease rates, we look at 9 to 15 months, like-for-like, and our ETR, for example, they use all leases. What that means, it could have short-term leases, and that's going to change the numbers. That's why I encourage people to look at full year and a relative basis.

你好，Rich。我認為一些混淆可能與定義有關。因此，例如，我們對混合租賃利率的看法與我們的一些同行相比略有不同。對於租賃費率，我們關注的是 9 至 15 個月的同類費率，例如，我們的 ETR 使用所有租賃。這意味著，它可能會有短期租約，而這將改變數字。這就是為什麼我鼓勵人們關注全年和相對基礎。

So I do know that the definition is different on the turnover statistics as well. But as far as for our portfolio, 35% is a little bit lower than typical historical average. It's usually closer to the high 30% to 40% range. And right now, it's really a function of us. The goal is, as I said in the past, is to maximize revenues and we want to make sure that we are renewing in such a way that we can have and generate positive new lease rates whenever possible. And so if we look at our blended, we have really solid blended number in the first quarter of 2.8%. And which is -- so turnover ultimately input number. It's not a strategy that is used to form an execution plan.

所以我確實知道營業額統計的定義也不同。但就我們的投資組合而言，35% 略低於典型的歷史平均值。它通常接近 30% 到 40% 的高位範圍。而現在，這確實是我們的職責。正如我過去所說的那樣，我們的目標是實現收入最大化，我們希望確保以這樣的方式進行續約，即盡可能獲得併產生積極的新租賃率。因此，如果我們看一下我們的混合數據，我們會發現第一季的混合數字確實很穩定，為 2.8%。這就是－營業額最終輸入的數字。這不是用於制定執行計劃的策略。

David Segall, Green Street.

大衛‧西格爾 (David Segall)，綠街。

I want to get your thoughts on Washington State's rent control proposal. And if you could kind of relate how California similar when control has impacted your operations and investment decisions over the last several years is kind of a guide for thinking about the Washington State proposal?

我想聽聽您對華盛頓州租金管制提案的看法。如果您能將加州的類似控制措施在過去幾年中如何影響您的營運和投資決策聯繫起來，這是否可以作為思考華盛頓州提案的指導？

Yeah, sure thing. Obviously, legislation generally is not something that helps multifamily or housing cost. It doesn't achieve what the intention is or the misguided notion that are going to some allow cost of housing to be cheaper. So it's too bad that Washington is taking this route. Having said that, this rent cap of CPI +7 and Essex 10 is similar to what we in California. So we're obviously accustomed to operating in this environment. And we want obviously a little more time to assess the details to make sure we understand the full impact.

是的，當然可以。顯然，立法通常不會有助於降低多戶住宅或住房成本。它並沒有實現其目的，也沒有實現降低住房成本的錯誤觀念。所以華盛頓選擇這條路線實在太糟糕了。話雖如此，CPI +7 和 Essex 10 的租金上限與我們加州的情況類似。所以我們顯然已經習慣了在這種環境下運作。我們顯然需要更多時間來評估細節，以確保我們了解其全部影響。

Having said that, when California passed [1482] it did not have a meaningful -- because Essex have had a self-imposed -- rent cap for many decades. I mean, I think since I've been here and well before I joined the company. And so that has not impacted our performance. So at this level, it's really an anti-gouging and so it's -- we certainly don't expect an impact to our business. It's really just the intention of legislation, I don't think create the desired results that rates want.

話雖如此，當加州通過 [1482] 時，它並沒有一個有意義的——因為埃塞克斯幾十年來一直自我強加——租金上限。我的意思是，我想自從我來到這裡，甚至在我加入公司之前。所以這並沒有影響我們的表現。因此，從這個層面上講，這確實是一種反詐騙行為，我們當然不希望它對我們的業務產生影響。這實際上只是立法的意圖，我不認為這會產生利率所希望的結果。

Great. And then just finally, on bad debt. You've made a lot of good progress on that. And I'm just curious like how what the time line would be to finally reach full normalization? Would that be by the end of the year or probably more in '26?

偉大的。最後，談談壞帳。你在這方面已經取得了很大的進展。我只是好奇，最終實現完全正常化的時間表是怎麼樣的？那會是在今年年底之前，還是可能在 26 年之後？

Hi, David. It's Barb. Yeah, we're at 50 basis points in the first quarter. Our long-term average is around 40. So we're not that far off from it. But yes, I think by year-end, it's a realistic facility.

你好，大衛。是芭芭拉。是的，第一季我們的利率達到了 50 個基點。我們的長期平均值在40左右。所以我們距離這個目標並不遙遠。但是是的，我認為到年底，它將成為一個現實的設施。

Alex Kim, Zelman & Associates.

亞歷克斯金（Alex Kim），澤爾曼與合夥人。

Great. Good morning out there. I wanted to ask about kind of the lower turnover that you've enjoyed for this quarter as well. Just curious, is this a primary drivers to the lower repair and maintenance expense as well. Just as part of that, have your expectations for the expense bucket changed for the full year at all?

偉大的。大家早安。我還想問一下本季你們的營業額為什麼會下降了。只是好奇，這是否也是降低維修和保養費用的主要驅動因素。作為其中的一部分，您對全年支出預算的預期是否有所改變？

No. This is Barb. The R&M cost is lumpy from quarter-to-quarter. It really depends on what happened in the prior year, what projects were being completed and things of that nature. So the R&M cost, we still expect to be up 2.5% to 3% for the full year. The first is just an easy comp that drove that, nothing to do with the turnover.

不。這是芭布。研發與維護成本每季都有波動。這實際上取決於前一年發生的事情、完成了哪些項目以及諸如此類的事情。因此，我們仍預計全年研發成本將上漲 2.5% 至 3%。第一個只是一個簡單的比較，與營業額無關。

Got it. That's helpful to note. And then just sticking with the expense side. if I remember correctly, your returns policy in December, and it looks like insurance costs still remains slightly higher on a year over year basis from 1Q '24. Could you talk through your expectation for roughly down 2% for the full year. And then again, if there's been a change insurance expected.

知道了。注意到這一點很有幫助。然後繼續討論費用方面。如果我沒記錯的話，你們 12 月的退貨政策看起來保險成本與 24 年第一季相比仍然略高。您能否談談對全年下降約 2% 的預期？再說了，如果預期保險有變動的話。

Yeah, you have a good memory. Insurance is still down 2% for the full year. There are other in that line, primarily related to tenant litigation, and that was a little bit more elevated this quarter relative to the first quarter of '24, which drove that number up 5% that tenant litigation is lumpy we settle claims can be lumpy. So we do still expect the insurance line notes. The insurance premiums to still be down on a year over year basis.

是啊，你的記憶力真好。全年保險業仍下降2%。該系列中還有其他內容，主要與租戶訴訟有關，與 24 年第一季度相比，本季度的訴訟量略有上升，導致該數字上升了 5%，因為租戶訴訟並不穩定，我們解決的索賠也可能不穩定。因此我們仍然期待保險單。保險費較去年同期仍下降。

Ladies and gentlemen, That ends our question and answer session. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

女士們、先生們，我們的問答環節到此結束。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。