Essex Property Trust Inc (ESS) 2025 Q3 法說會逐字稿

Good day, and welcome to Essex Property Trust third-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，歡迎參加埃塞克斯地產信託公司2025年第三季業績電話會議。再次提醒，今天的電話會議正在錄音。本次電話會議中有關預期營運績效和其他未來事件的聲明均為前瞻性聲明，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 available to the company at this time. A number of factors could cause actual results to differ materially from those anticipated. Further information about these risks can be found on the company's filings with the SEC.

前瞻性陳述是根據公司目前的預期、假設和信念以及公司目前可獲得的資訊作出的。許多因素可能導致實際結果與預期結果有重大差異。有關這些風險的更多信息，請參閱該公司向美國證券交易委員會提交的文件。

It is now my pleasure to introduce your host, Ms. Angela Kleiman, President and Chief Executive Officer for Essex Property Trust. Thank you. Ms. Kleiman, you may begin.

現在，我很榮幸地向大家介紹主持人，埃塞克斯地產信託公司總裁兼首席執行官安吉拉·克萊曼女士。謝謝。克萊曼女士，你可以開始了。

Welcome to Essex's third-quarter earnings call. Barb Pak will follow with prepared remarks and Rylan Burns is here for Q&A. We are pleased to report solid results for the third quarter, highlighted by a $0.03 FFO performance and an increase to our core FFO full year guidance. Today, I will cover key takeaways from the quarter, a high-level outlook for 2026, and provide an update on the transaction market.

歡迎參加艾塞克斯郡第三季財報電話會議。Barb Pak 將隨後發表準備好的講話，Rylan Burns 將在此進行問答環節。我們很高興地宣布第三季業績穩健，其中 FFO 業績達到 0.03 美元，並且我們提高了全年核心 FFO 預期。今天，我將介紹本季的主要收穫、2026 年的整體展望，並提供交易市場的最新情況。

Starting with operations, our portfolio performed well amid a backdrop of muted job growth across the US and heightened policy uncertainty. Year to date, through the third quarter, we generated a blended lease rate growth of 3% on all leases and 2.7% on like-term leases. This is a proven example of the competitive advantage of our low supply markets.

從營運方面來看，儘管美國就業成長乏力，政策不確定性加劇，但我們的投資組合表現良好。今年迄今，截至第三季末，我們所有租賃的綜合租賃率成長了 3%，同期限租賃的綜合租賃率增加了 2.7%。這是低供應市場競爭優勢的一個有力證明。

As expected, Northern California is our best-performing region and the fundamental backdrop remains favorable with forward-looking supply continuing to decline comparable to a level in the years following the great financial crisis. Within the Bay Area, San Francisco and Santa Clara counties are generating the highest rent growth year to date, reflecting attractive rent-to-income ratios, demand benefiting from AI-related startups, and above-historical average migration trends.

正如預期的那樣，北加州是我們表現最好的地區，基本面仍然有利，未來供應量繼續下降，與金融危機後幾年的水平相當。在灣區內，舊金山和聖克拉拉縣的租金漲幅今年迄今最高，這反映出租金收入比具吸引力、人工智慧相關新創企業帶來的需求以及高於歷史平均水平的人口遷移趨勢。

Our Seattle region remains healthy but is trending at the low-end of our full-year expectations, driven by a combination of challenging year-over-year comparison, soft demand, and pockets of supply temporarily limiting pricing power in certain submarkets. Finally, on Southern California, this region is generally performing in line with our expectations. As we have discussed Los Angeles has lagged, primarily attributed to delinquency recovery, muted job conditions similar to the US, and pockets of supply on the West Side and Downtown LA.

我們的西雅圖地區仍然保持健康，但其發展趨勢處於全年預期範圍的下限，這是由於同比基數較高、需求疲軟以及部分子市場供應暫時限制了定價能力等因素共同造成的。最後，就南加州而言，該地區的整體表現符合我們的預期。正如我們之前討論過的，洛杉磯的發展一直滯後，主要原因是拖欠貸款的追繳、與美國類似的低迷就業形勢，以及西區和洛杉磯市中心供應不足等問題。

With supply expected to drop in 2026, the infrastructure spending earmarked for Los Angeles and market occupancy improving, we see a path to pricing power. Given the soft economic environment and policy uncertainty, we are not surprised the hiring and investment decisions have been delayed across the US. But we are pleased to see the West Coast once again outperforming the US average, a trend we anticipate continuing.

預計 2026 年供應量將下降，洛杉磯的基礎設施支出將增加，市場入住率也將提高，因此我們看到了定價權的提升空間。鑑於疲軟的經濟環境和政策的不確定性，美國各地的招募和投資決策被推遲，我們對此並不感到意外。但我們很高興地看到，西海岸再次跑贏美國平均水平，我們預計這一趨勢還將繼續。

Looking to 2026, our portfolio is well positioned relative to other US markets, supported by lower levels of housing supply, attractive affordability, and demand catalysts from the technology sector. Directionally, we assume Northern California to continue outperforming and to rank among the top US markets as job growth in Northern California gradually gains momentum, which is supported by announcements of significant office expansions.

展望 2026 年，我們的投資組合相對於其他美國市場而言處於有利地位，這得益於較低的住房供應水平、有吸引力的可負擔性以及科技行業的需求催化劑。從方向上看，我們預計北加州將繼續表現優異，並躋身美國頂級市場之列，因為北加州的就業成長勢頭正逐漸增強，而大量辦公大樓擴建的公告也印證了這一點。

Next in the ranking would be the Seattle region. With total housing supply deliveries declining by almost 40% next year, we are optimistic about the market's outlook. For Southern California, we expect stable economic conditions with Los Angeles fundamentals to improve. Moving on to early building blocks, we forecast our blended lease rates for the second half of the year to land at a similar level to last year. As such, we anticipate another year of stable growth with 2026 earn-in between 80 to 100 basis points.

排名第二的是西雅圖地區。預計明年住房供應總量將下降近 40%，我們對市場前景持樂觀態度。我們預期南加州經濟情勢穩定，洛杉磯基本面將有所改善。接下來談談早期基礎建設，我們預測今年下半年的綜合租賃價格將與去年同期水準相近。因此，我們預計2026年將保持穩定成長，獲利將在80至100個基點之間。

Lastly, on our investment activity in the transaction market. Page S-16.1 of the supplemental demonstrates the value created from our capital allocation strategy since 2024. We have focused our investments in the highest growth submarkets in Northern California, acquiring almost $1 billion of assets in this region while achieving accretion relative to dispositions and improving overall age of the portfolio.

最後，談談我們在交易市場的投資活動。補充資料第 S-16.1 頁展示了自 2024 年以來我們的資本配置策略所創造的價值。我們將投資重點放在北加州成長最快的細分市場，在該地區收購了近 10 億美元的資產，同時實現了相對於資產處置的增值，並提高了投資組合的整體年齡。

As for the transaction in that market, year-to-date volume on the West Coast is slightly above 2024 but remain below average historical levels. We continue to see a competitive bidding environment for high-quality properties in our markets, and cap rates are generally in the mid-4% range, with most of the Bay Area transactions in the low 4%. Although cap rates have compressed in Northern California, we will continue to enhance value from our operating platform and drive FFO and NAV per share growth for our shareholders.

至於該市場的交易情況，西海岸今年迄今的交易量略高於 2024 年的水平，但仍低於歷史平均水平。我們市場上的優質房產競標環境仍然激烈，資本化率通常在 4% 左右，灣區的大部分交易都在 4% 左右。儘管北加州的資本化率有所下降，但我們將繼續提升營運平台的價值，並為股東推動FFO和每股NAV的成長。

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

這樣，我就把電話交給芭芭拉了。

Thanks, Angela. I'll begin with a recap of our third-quarter results, followed by comments on investments and the balance sheet. Beginning with our third-quarter results, we achieved a solid quarter with core FFO per share exceeding the midpoint of our guidance range by $0.03, attributed to lower G&A and interest expense. As a result of the third-quarter beat, we are pleased to raise the midpoint for core FFO per share to $15.94. As for operations, we remain on plan and are reaffirming the full-year midpoint for same-property revenue, expense, and NOI growth.

謝謝你，安吉拉。我將首先回顧我們第三季度的業績，然後對投資和資產負債表發表評論。從我們第三季的業績來看，我們取得了穩健的季度業績，核心每股FFO比我們預期範圍的中點高出0.03美元，這主要歸功於一般及行政費用和利息支出的降低。由於第三季業績超出預期，我們很高興將核心FFO每股收益的中位數上調至15.94美元。營運方面，我們仍按計畫進行，並重申全年同店收入、支出和NOI成長的中位數。

Turning to the structured finance portfolio, year to date, we have received $118 million in redemptions and anticipate $200 million in total proceeds for the full year. As you may recall, over the past two years, we have made the strategic decision to redeploy the redemption proceeds into acquisitions at better-than-market rate yields and in markets with the highest near-term rent growth potential. This strategy has resulted in better NAV growth, improved cash flow for reinvestment and higher quality of FFO earnings.

再來看結構性融資組合，今年迄今，我們已收到 1.18 億美元的贖回款項，預計全年總收益將達到 2 億美元。您可能還記得，在過去的兩年裡，我們做出了策略決策，將贖回所得重新部署到收益率高於市場水平且近期租金成長潛力最高的市場進行收購。這項策略帶來了更好的淨資產值成長、更充裕的再投資現金流以及更高品質的FFO收益。

Looking ahead to 2026, we are pleased that we are in the final year of the redemption-related headwinds and the realignment of this business will be behind us. Overall, we expect roughly $175 million in additional redemptions next year. Given heavy redemptions in 2025 and expected in 2026, we anticipate this will reduce our 2026 core FFO growth, net of reinvestment by approximately 150 basis points depending on timing of redemptions. As we look further out to 2027 and beyond, we expect that FFO volatility from this business will abate as the size of our structured finance book will have decreased from the peak of $700 million in 2021 to around $250 million in total investments.

展望 2026 年，我們很高興與贖回相關的阻力已經過去一年，這項業務的調整也將告一段落。總體而言，我們預計明年將有約 1.75 億美元的額外贖回額。鑑於 2025 年和預計 2026 年將出現大量贖回，我們預計這將使我們 2026 年的核心 FFO 成長（扣除再投資後）減少約 150 個基點，具體取決於贖回的時間。展望 2027 年及以後，我們預計隨著結構性融資規模從 2021 年的峰值 7 億美元減少到總投資額約 2.5 億美元，該業務的 FFO 波動性將會減弱。

Lastly, a few comments on capital markets and the balance sheet. Throughout 2025, we executed several financings to further strengthen our balance sheet, increase our liquidity, diversify our capital sources, and proactively address near-term maturities at attractive rates in the current market environment. With manageable maturities over the next 12 months, healthy net debt to EBITDA of 5.5 times, and over $1.5 billion in available liquidity, our balance sheet is strong heading into 2026.

最後，我想就資本市場和資產負債表談幾點看法。2025 年全年，我們進行了多項融資，以進一步加強資產負債表，提高流動性，實現資本來源多元化，並在當前市場環境下以優惠利率積極應對近期到期債務。未來 12 個月內到期債務可控，淨債務與 EBITDA 比率為 5.5 倍，且擁有超過 15 億美元的可用流動資金，因此，我們的資產負債表在進入 2026 年時非常強勁。

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

現在我將把電話轉回給接線員，以便他們回答問題。

(Operator Instructions) Nick Yulico, Scotiabank.

（操作員說明）Nick Yulico，加拿大豐業銀行。

Thanks. I wanted to see if there was any way you could break out the blended rate growth a bit in the third quarter, just for some perspective on how much LA and Orange County might have been a drag on those numbers?

謝謝。我想看看您能否把第三季的綜合利率成長情況單獨列出來，以便了解洛杉磯和橙縣對這些數據造成了多大的拖累？

Hey, Nick. It's Angela here. Good morning. Thanks for your question. As expected, you called it. LA has been a drag, but that's not a surprise to anybody. In terms of our blended for the third quarter, Southern California came in at around 1.2% and Northern California close to 4%, and Seattle right in the middle at about 2%.

嘿，尼克。我是安琪拉。早安.謝謝你的提問。果然不出所料，你猜對了。洛杉磯一直很無聊，但這並不令人意外。就我們第三季的綜合數據而言，南加州約為 1.2%，北加州接近 4%，西雅圖則處於中間水平，約 2%。

And to call out LA, specifically, LA is below the 1.2% average for Southern California. LA is really 1%. So that gives you the range and the magnitude. But on the high end, when we're looking at Northern California, San Francisco and San Mateo, they're in kind of that 6%, 5% range, in terms of the blended. So hopefully, that kind of gives you the bookends of the -- of our portfolio. It's a pretty wide range.

具體來說，洛杉磯的成長率低於南加州 1.2% 的平均值。洛杉磯的佔比其實只有1%。這樣就能得出範圍和幅度。但就高端而言，當我們觀察北加州、舊金山和聖馬刁時，它們的混合比例大致在 6% 到 5% 之間。所以，希望這能讓你大致了解我們投資組合的來龍去脈。範圍相當廣泛。

Okay. Great. Thank you. And then I guess my follow-up question is just in terms of in Northern California, whether you've seen any like real pickup in demand from -- I mean, if we see again from some of the job announcements of new company formations or some of the activity on the office side in San Francisco or the broader Bay Area, just anything more you can share on how that's actually translating into demand on the ground. Thanks.

好的。偉大的。謝謝。那麼，我的後續問題是，就北加州而言，您是否看到需求出現任何真正的回升——我的意思是，如果我們再次從一些新公司成立的招聘公告或舊金山或更廣泛的灣區的一些辦公活動來看，您能否分享更多關於這些活動如何實際轉化為實際需求的信息？謝謝。

Yes, that's a good question. We certainly are seeing a steady strength in the Northern region. And when we look at the top 20 tech postings, the postings have remained steady with September a slight uptick in California, mostly benefiting from the Northern region, the San Francisco, San Mateo, and, of course, the Santa Clara counties.

是的，這是個好問題。我們確實看到北部地區呈現穩定成長的態勢。當我們查看排名前 20 名的技術類職位時，職位發布數量一直保持穩定，9 月份加州的職位發布數量略有上升，主要受益於北部地區，即舊金山縣、聖馬刁縣，當然還有聖克拉拉縣。

It's tough to get exact numbers because they don't show up. The BLS numbers, as we talked about, has been challenging. What we are seeing is that -- we're seeing more startups than we've ever seen in the past. And you could -- anecdotally, what we're seeing is that office space less than 10,000 square feet are in hot demand. And that is a new phenomenon that we've not seen in the past.

很難獲得確切的數字，因為它們根本不會顯示出來。正如我們之前討論過的，勞工統計局的數據一直令人擔憂。我們看到的是——我們看到的創業公司比以往任何時候都多。而且，根據我們的觀察，面積小於 10,000 平方英尺的辦公空間非常搶手。這是我們過去從未見過的新現象。

Okay, thank you.

好的，謝謝。

Eric Wolfe, Citi.

Eric Wolfe，花旗銀行。

Thanks. It's Nick Joseph here with Eric. You mentioned the '26 earn-in of estimated to be 80 to 100 basis points. I was hoping you could break that down between Northern California, Southern California, and Seattle?

謝謝。我是尼克·約瑟夫，我是艾瑞克。您提到 '26 年的收益預計為 80 至 100 個基點。我希望你能分別分析一下北加州、南加州和西雅圖的情況？

Hey, Nick. I don't have the exact breakdown in front of me. I will just point to you that we -- of course, we're assuming that Northern California will lead and Southern California will rank third in terms of the major three regions with Seattle in the middle.

嘿，尼克。我手邊沒有詳細的明細。我只想指出，我們——當然，我們假設北加州將領先，南加州將排名第三，西雅圖位居中間，這三大主要地區中就是如此。

But I think a helpful data point could be that if you look at our blended lease rates in the third quarter, it's comparable to the same -- to what we achieved last year -- a little bit lower than what we achieved last year. However, what we're seeing in the fourth quarter is we're on track for fourth quarter to do better than last year. So year over year for the second half, we're assuming that we're going to land in the same zone, somewhere in the low 2%, and that gives us the 80 to 100 basis points earn-in.

但我認為一個有用的數據點是，如果你看一下我們第三季的綜合租賃率，它與去年同期基本持平，略低於去年同期的水平。然而，從第四季度的情況來看，我們有望比去年同期表現更好。因此，我們假設下半年的同比數據將保持在相同的水平，大約在 2% 左右，這將使我們獲得 80 到 100 個基點的收益。

Thanks. Appreciate that. And then just on the preferred book, I think you said 150 basis points headwind. What's the sensitivity around the timing of the potential redemptions for next year?

謝謝。謝謝。然後，就優先股而言，我想你說過會有 150 個基點的不利影響。明年潛在贖回的時間安排有多敏感？

Hi, Nick. It's Barb. I mean there's a couple that are maturing in the first quarter. And if they may need an extension for one month or two, that's really the sensitivity that I'm talking about. But the maturities are very much in the first half of the year. And so, what we've guided to and what I provided was assuming that they're fully redeemed at maturity. If they get extended, it might be a little bit lower.

嗨，尼克。是芭芭拉。我的意思是，有幾隻狗在第一季就長大了。如果他們可能需要延長一兩個月，那正是我所說的敏感度所在。但這些到期日大多集中在上半年。因此，我們一直以來所引導的以及我所提供的，都是假設它們在到期時會被完全贖回。如果延期，價格可能會略低一些。

Got it. Thank you.

知道了。謝謝。

Jeff Spector, Bank of America.

傑夫·斯佩克特，美國銀行。

Great. Thank you. Just a follow up on the first question Nick had asked. I think it's a follow-up question on jobs. I mean, it does seem like we're seeing mixed signals between AI hiring, tech layoffs. I mean, how are you thinking about this into next year, maybe even medium term? What are you hearing from, let's say, your -- any peers, any executives that you talk to in terms of the job outlook in your region? Thank you.

偉大的。謝謝。這是對尼克提出的第一個問題的後續。我認為這是一個關於就業的後續問題。我的意思是，人工智慧領域的招募和科技業的裁員之間似乎存在著矛盾的訊號。我的意思是，你對明年，甚至中期規劃有什麼想法？比如說，你從你的同行、你交談過的任何高階主管那裡，都聽到了哪些關於你所在地區就業前景的消息？謝謝。

Yes. Hey, Jeff, that is a great question because it really goes to the heart of, where is AI taking us, right, on more of a broad conversation from that perspective. So a lot of things are happening right now, which is noisy -- and we are seeing recent layoff announcements. But keep in mind that large tech companies, they get most of the headlines.

是的。嘿，傑夫，這是一個很好的問題，因為它真正觸及了人工智慧將把我們帶到何處的核心，對吧？從這個角度進行更廣泛的討論吧。所以現在發生了很多事情，場面很混亂——而且我們最近也看到了裁員公告。但請記住，大型科技公司總是佔據新聞頭條。

Broadly across the US layoffs -- layoffs are occurring. So for example, UPS in Atlanta is cutting 48,000 jobs. From what we're seeing on the ground here is that this is a normal part of the business cycle. In an environment where the macro environment is soft, business are -- and they should be focusing on efficiency. And so I don't think, from what we're seeing, that they are AI-driven job losses.

美國各地普遍出現裁員——裁員正在發生。例如，UPS在亞特蘭大將裁員48,000人。從我們目前所見的情況來看，這是商業週期中的正常組成部分。在宏觀環境疲軟的情況下，企業——而且他們應該——專注於提高效率。因此，從我們目前所看到的來看，我認為這些失業並不是人工智慧導致的。

But in terms of what we think is going to happen with the conversation about AI displacing jobs and being -- becoming -- or is viewed to be a disruptor, we do think that's going to happen at some point. AI capabilities, it's growing rapidly, and we're seeing research suggesting that most companies are experimenting with AI.

但就人工智慧取代工作以及成為顛覆者或被視為顛覆者這一話題而言，我們認為這種情況遲早會發生。人工智慧能力正在迅速發展，我們看到研究表明，大多數公司都在嘗試使用人工智慧。

So that experimentation level is very high. But the adaption, that level is low because the return on investment is still unclear. So for example, Essex, where we see AI benefiting data analytics and certain repetitive tasks -- but it is still in early developmental stages, and we need additional technology to interface with AI applications for utilization.

因此，實驗水平非常高。但是，由於投資回報尚不明確，因此這種適應程度很低。例如，在埃塞克斯，我們看到人工智慧正在為數據分析和某些重複性任務帶來益處——但它仍處於早期發展階段，我們需要額外的技術來與人工智慧應用程式對接以加以利用。

Essex have not had significant workforce reduction using AI. And so what we do expect is that the pace of disruption or job displacement will be more gradual. Because on the flip side, what we're seeing is, as I mentioned earlier, an unprecedented number of startups, small companies that because of AI, can form businesses. And that is not being picked up by BLS. But certainly, it's being picked up by the demand that we're seeing in Northern California. Does that make sense?

埃塞克斯郡並沒有因為使用人工智慧而大幅減少員工人數。因此，我們預期產業動盪或工作流失的速度將會更加緩慢。另一方面，正如我之前提到的，我們看到的是前所未有的創業公司和小型公司數量，由於人工智慧的作用，這些公司能夠成長壯大。而美國勞工統計局並沒有註意到這一點。但可以肯定的是，北加州的需求正在推動這一趨勢。這樣說得通嗎？

Yes, thank you. That's helpful. And maybe, could you talk a little bit more about San Francisco specifically, let's say, downtown -- and we're seeing all these great articles on downtown, the city versus your suburbs. How is your portfolio benefiting from all of this?

是的，謝謝。那很有幫助。或許，您能再多談談舊金山，比如說市中心——我們看到了很多關於市中心、城市與郊區對比的精彩文章。您的投資組合如何從中受益？

Well, I think interestingly, downtown, we view Northern California generally is still in a recovery phase and -- given more rents are relative to pre-COVID levels. And the suburban started recovering last year. Downtown is recovering starting this year. But when we look at relative blended rates for our markets, if I break out San Francisco, for example, year-to-date blended rate growth is 5.2%, where San Mateo is 6% and San Jose in that 4% range. And so the relativity isn't -- the dispersion isn't huge, and they're all quite strong. And when we look at announcements of new office space, it's just as concentrated in the suburban area as it is in downtown.

嗯，我覺得有趣的是，就市中心而言，我們認為北加州總體上仍處於復甦階段，而且——考慮到更多的租金相對於新冠疫情前的水平而言。郊區經濟從去年開始復甦。市中心從今年開始復甦。但當我們查看我們市場的相對綜合利率時，例如，如果我單獨來看舊金山，今年迄今為止的綜合利率增長率為 5.2%，聖馬特奧為 6%，聖何塞則在 4% 左右。因此，相對性並不——色散並不大，而且它們都相當強。當我們查看新建辦公空間的公告時，會發現郊區的集中程度與市中心一樣高。

Great, thank you.

太好了，謝謝。

Steve Sakwa, Evercore ISI.

Steve Sakwa，Evercore ISI。

Hi. This is Sanket on for Steve. Switching a bit, you guys have been very active on transaction front this year. And we just wanted to understand, what are the cap rates are used on acquisitions and exclusions for those assets? And how deep is the investor pool within that market?

你好。這裡是桑凱特替史蒂夫發言。稍微換個話題，你們今年在交易方面非常活躍。我們只是想了解，收購時使用的資本化率是多少，以及哪些資產會被排除在外？該市場中的投資人群有多大？

Thank you. This is Rylan here. I'd point you to S-16.1, where we've tried to break out specifically the cap rates that we've been targeting and been successful at acquiring over the past 1.5 years; and also point you to the Essex yield, which is 40 basis points higher, which is as a result in something we've talked about, our operating platform. Given our asset collection models in these markets, we're able to pull out a significant amount of controllable expense by putting them onto our platform.

謝謝。這位是瑞蘭。我建議您參考 S-16.1，其中我們嘗試具體列出過去 1.5 年裡我們一直追求並成功獲得的資本化率；同時，也請您關注埃塞克斯收益率，它高出 40 個基點，這是我們之前討論過的運營平台帶來的結果。鑑於我們在這些市場的資產收集模式，我們可以將這些資產放到我們的平台上，從而節省大量可控費用。

So that's been one of the driving factors in our acquisition strategy. So as Angela mentioned, cap rates have compressed. There's been a significant sentiment change as it relates to Northern California over the last year. I'd say we've been relatively early and been able to acquire significant -- almost $1 billion of assets in these submarkets at that 4.8% market rate and a 5.2% yield to Essex. So we're pleased with what we've accomplished, and we're hoping to continue.

所以，這是我們收購策略的主要驅動因素之一。正如Angela所提到的那樣，資本化率已經下降。過去一年來，人們對北加州的看法發生了顯著變化。我認為我們入場相對較早，並且能夠以 4.8% 的市場利率和 5.2% 的收益率在這些子市場中收購大量資產——近 10 億美元的資產。我們對已取得的成就感到滿意，並希望繼續努力。

And as a follow up to that, are you guys evaluating share repurchases, given where the stock price has been like -- it's been a common theme across your peers.

作為後續問題，鑑於目前的股價狀況，你們是否正在考慮股票回購？這似乎是你們同行普遍採取的策略。

Hey, Sanket, that's a good question. And I think you've seen that we have a very solid track history of buying back stocks and assessing all the relative value leading to that decision. And if you look at where we are today, where we're trading today, it's much more compelling from a stock buyback perspective than it was in the third quarter.

嘿，桑凱特，問得好。我想你們已經看到，我們在回購股票方面有著非常可靠的記錄，並且會評估所有相關的相對價值，從而做出決定。如果你看看我們今天所處的位置，看看我們今天的交易情況，從股票回購的角度來看，它比第三季更有吸引力。

But I do want to highlight that our transaction in the third quarter was around a 5% cap rate, and you add growth to that. It's quite compelling because stock back then was trading in kind of that low- to mid-5% range. So once again, you will see us being very disciplined in making sure that we're going to maximize the yield depending on our cost of capital and investment instrument available to us.

但我確實想強調，我們第三季的交易資本化率約為 5%，而且你還要再增加成長。這很有吸引力，因為當時的股票交易價格大約在 5% 到 5% 的低點到中位數區間。因此，您將再次看到我們非常自律地確保根據我們的資本成本和可用的投資工具最大限度地提高收益。

Makes sense. Thank you.

有道理。謝謝。

Austin Wurschmidt, KeyBanc Capital Markets.

Austin Wurschmidt，KeyBanc 資本市場。

Great, thanks. Hello, everybody. So going back to the lease rate growth during the quarter versus the back-half projections, I think, it was around 2.7% as of last quarter. Was Southern California lower than projected, or was it Seattle? I think as you mentioned in the prepared remarks that drove maybe pricing being a little bit softer than you had -- had you thought last quarter? And then just wondering if you think the Seattle softness, is it kind of a temporary phenomenon or could persist into 2026? Thanks.

太好了，謝謝。大家好。所以，回顧本季租賃率成長與下半年預測的對比，我認為，截至上季，租賃率成長約為 2.7%。是南加州的降幅低於預期，還是西雅圖的降幅低於預期？我認為正如您在準備好的演講稿中提到的那樣，這或許導致定價比您上個季度預期的要寬鬆一些——您上個季度是這麼想的嗎？然後，我想知道您認為西雅圖的疲軟狀態是一種暫時現象，還是會持續到 2026 年？謝謝。

Hey, Austin. I think you make -- it's really driven by Seattle. And what we're seeing in Seattle is that the demand is coming softer. And we had expected that demand to moderate throughout the year on a national level. And keep in mind, Seattle does not have the benefit of the AI startups that Northern California does. Northern California has 80% of the AI business. So Seattle is going to be more in line with the US average at the current cycle.

嘿，奧斯汀。我認為你所做的——這真的受西雅圖的影響。我們在西雅圖看到的情況是，需求正在放緩。我們預計，全國的需求將在全年趨於緩和。請記住，西雅圖不像北加州那樣擁有眾多人工智慧新創公司。北加州佔了人工智慧業務的 80%。因此，西雅圖在本輪週期中將更接近美國平均。

But I do want to know that the -- some of the headline news like Amazon laying off corporate employees, they have multiple locations. So it's not a Seattle-specific issue. And when our team dug into the WARN notices, it's less than 10% of the layoffs is Seattle specific. So this leads us to believe that this is not a market that we're seeing red flags. It's a market that's stable. It's still performing well. Certainly, it's not reaching above-average CAGR growth that we had hoped, but it's still a good market. And with next year's supply going down by almost 40%, it's going to do just fine.

但我確實想知道——一些頭條新聞，比如亞馬遜裁減公司員工，他們有多家分公司。所以這不是西雅圖特有的問題。當我們的團隊深入研究 WARN 通知時發現，只有不到 10% 的裁員是西雅圖特有的。因此，這讓我們相信，我們並沒有在這個市場看到任何危險信號。這是一個穩定的市場。它目前性能依然良好。當然，它並沒有達到我們預期的高於平均水平的複合年增長率，但它仍然是一個不錯的市場。明年供應量將減少近 40%，所以它應該沒問題。

Appreciate the thoughts. And then just the 4% growth in blended lease rates in Northern California, coupled with some of the office leasing you've referenced across the Bay Area, do you think that the region can sustain that level of growth in 2026? Or was there any specific phenomenon like back to office that may provide a little bit of an incremental lift that maybe is less sustainable to the extent job growth remains more muted, more of a broader comment than specific to the area? Thanks.

感謝你的建議。僅北加州綜合租賃率 4% 的增長，再加上您提到的灣區一些辦公大樓租賃情況，您認為該地區到 2026 年能否維持這種增長水平？或者是否存在像重返辦公室這樣的特定現象，可能會帶來一些漸進式的提振，但如果就業成長仍然較為疲軟，這種提振可能不太可持續，這更多的是一種更廣泛的評論，而不是針對特定領域的評論？謝謝。

Yes. Hey, Austin, I think there are different -- in every cycle, there are different influences that drive job growth. And currently, what will happen -- what we're seeing in the Bay Area is really more of a recovery story. We're not -- we have not begun the growth story yet. And because if you look at the top 20 tech hiring companies, the postings, it's still going to add and slightly below the long-term average. And so what we're seeing, that 4% forecasted is a catch-up, if you will. And this market still has a lot of legs.

是的。嘿，奧斯汀，我認為每個週期都有不同的因素推動就業成長。而目前，我們將看到的——我們在灣區看到的，實際上更多的是一個復甦的故事。我們還沒有——我們還沒有開始發展壯大。而且，如果你看看排名前 20 名的科技招聘公司，你會發現招聘職位數量仍在增加，但略低於長期平均水平。因此，我們看到的，預測的 4% 的成長，可以說是一種追趕。這個市場仍然有很大的發展空間。

Appreciate the thoughts. Thank you.

感謝你的建議。謝謝。

Jamie Feldman, Wells Fargo.

傑米·費爾德曼，富國銀行。

Hi. Thanks for taking my questions. This is Connor on with Jamie. Can we talk about your fourth-quarter leasing strategy? Where are you seeing renewals go out for the quarter, and if you have any insight on new lease growth quarter to date?

你好。謝謝您回答我的問題。這是康納和傑米連線。我們可以談談您第四季的租賃策略嗎？您認為本季哪些地區的續租情況最理想？您對本季迄今的新租賃成長有何見解？

Hey, Connor. Yes, our general strategy for the third quarter at the beginning, as we approach the seasonal peak, is to push rents and -- in the Northern California and Seattle region. And then in Southern California, we toggle between rents and occupancy, subject to market conditions. And as we wrap up the third quarter, we pivot to more of an occupancy or more defensive focus, especially as we saw strength early on, which, of course, taper off. And that's a normal seasonal cycle.

嘿，康納。是的，我們第三季初的整體策略是，隨著季節性高峰的臨近，在北加州和西雅圖地區推高租金。而在南加州，我們會根據市場狀況在租金和入住率之間彈性調整。隨著第三節比賽接近尾聲，我們將重點轉向控球或防守，尤其是在比賽初期我們看到了對方的強勢表現，當然，這種強勢表現會逐漸減弱。這是正常的季節性週期。

In terms of the renewal growth, what we're seeing is that it's been quite sticky. So in the third quarter, we sent renewals out around mid-4s, say, around 4.6%. And we landed for the quarter around 4.3%. So only 30 basis points of negotiations, which is quite good. Currently, for November, December, we're sending renewals out around mid-5%. And so with negotiation, we probably will land at maybe high 4s. So this is another reason that gives us conviction that fourth-quarter blended rates will be better this year than last year. And in terms of the -- what was the third question? New lease rates? Connor, what was your third question?

就續租成長而言，我們看到的是成長動能相當強勁。所以在第三季度，我們發出的續約通知大約在 4% 左右，比如說 4.6% 左右。本季我們最終的收益率約為 4.3%。所以談判只剩下 30 個基點，相當不錯了。目前，11 月和 12 月的續費通知發出頻率約為 5% 中段。因此，經過協商，我們最終可能會拿到4分以上。因此，這也是我們更加確信今年第四季綜合利率將優於去年的另一個原因。至於──第三個問題是什麼來著？新的租賃價格？康納，你的第三個問題是什麼？

Yes, it is on the new lease rates. Thank you.

是的，這是以新的租賃價格計算的。謝謝。

So new lease rates for October for the same store, it's pretty much flat. And that's expected, especially for this time of the season. I think a good data point I'll point you to is loss to lease, because we talked about that in the past as a good gauge of the portfolio. And where we're sitting today in October, we have a gain to lease of 1.6%. So that's not exciting.

所以，同一家店10月的新租金基本上維持不變。這在意料之中，尤其是在這個季節。我認為一個很好的數據點是租賃損失，因為我們過去曾討論過，它是衡量投資組合的一個良好指標。截至目前（10 月），我們的租賃收益率為 1.6%。所以這沒什麼令人興奮的。

But having said that, it's also nothing alarming. So just to give you some context, pre-COVID 2019, so it gives you a sense, more of a historical range, our gain to lease was worse. It was at 2.3%. So this is so far playing out to be a normal seasonal cycle in a soft macro economy. So we're quite pleased with how the portfolio is performing.

但話雖如此，這也沒什麼令人擔憂的。為了給您一些背景信息，在 COVID-19 疫情之前，以便您更好地了解歷史情況，我們的租賃收益更差。佔比為2.3%。所以目前來看，這似乎是宏觀經濟疲軟時期正常的季節性週期。因此，我們對投資組合的表現相當滿意。

Thank you for the color. That's super helpful. And then maybe on the preferred book, it looks like there was a $21 million commitment this quarter. Is there anything we should read into that as a way to maybe selectively offset some of the redemptions going forward? Just trying to kind of think about use of proceeds here beyond acquisitions. Thanks.

謝謝你提供的色彩。這太有幫助了。然後，在優先股方面，本季似乎有 2,100 萬美元的承諾。我們是否可以從中解讀出一些訊息，以便將來有選擇地抵消部分贖回？我只是想思考一下，除了收購之外，這筆資金還能用於哪些方面。謝謝。

Hey, Connor, Rylan here. As we've said, we are not getting out of this business. This is a good business, and there are interesting opportunities where we believe we'll get a premium yield to what we can buy in the fee simple side. In general, the strategy is just to make this a more manageable size relative to our total business.

嘿，康納，我是瑞蘭。正如我們所說，我們不會退出這個行業。這是一門不錯的生意，我們相信，透過投資永久產權資產，我們可以獲得比購買永久產權資產更高的收益，這其中蘊藏著許多有趣的機會。總的來說，我們的策略就是讓這項業務的規模相對於我們的整體業務更容易管理。

But if we see good opportunities, in this case, with partners that we know very well, and we're really comfortable with our position in the stack, we will continue to make investments in this book. So we're not getting out of it. It's really just trying to control the size of it and just pick the best opportunities for our shareholders.

但是，如果我們看到好的機會，例如這次是和我們非常熟悉的合作夥伴合作，並且我們對自身在技術堆疊中的地位感到非常滿意，我們將繼續投資這本書。所以我們無法擺脫困境。我們其實只是想控制規模，並為我們的股東挑選最佳的投資機會。

Thank you.

謝謝。

Alexander Goldfarb, Piper Sandler.

Alexander Goldfarb，Piper Sandler。

Hey. I think it's still morning out there, so good morning. I just want to circle back to the debt-preferred equity book. I know, Barb, you've articulated this for a while to trim the book, given it has gotten too big as a percent of FFO. But in the current environment where acquisition yields are in the 4s, which is well inside of where your stock is trading; and the DPE, you guys have a long successful track record with and provides better returns. And you've been good at that.

嘿。我想現在外面應該還是早上，所以早安。我只想再談談債務優先股這部分。我知道，芭芭拉，你已經表達過一段時間了，要精簡帳目，因為它佔FFO的比例太高了。但在當前環境下，收購收益率約為 4 倍左右，遠低於貴公司股票的交易價格；而且，貴公司在股息收益率方面有著長期成功的記錄，並能提供更好的回報。你在這方面一直做得很好。

Would you guys consider reassessing the decision to dramatically shrink it? Maybe 10% of FFO was too much, but it just seems like it's a good tool that you guys have to be competitive in a low cap rate world. And unfortunately, it seems to be relegated back to the -- almost up to the attic, if you will.

你們會考慮重新評估大幅縮減規模的決定嗎？或許 10% 的 FFO 有點高，但這似乎是你們在低資本化率環境下保持競爭力的一個好工具。不幸的是，它似乎被降級到了——幾乎到了閣樓那麼高的地方。

Hi, Alex. It's Barb. Rylan just made a good point that we're not getting out of the business. We're just being more selective. And given the redemptions are very heavy, it is shrinking. There's been a lot of capital raise that's chasing this business. And so yields have compressed. It's not risk-adjusted like we would like, and we're not going to go and do all the deals out there just to backfill this book. And so this business will ebb and flow. And right now, based off of what we know and where the environment is, it is shrinking. But it could change over time, and we -- it has evolved over time. So this is just where we are in the cycle today.

嗨，Alex。是芭芭拉。Rylan 剛剛說的很有道理，我們不會退出這個行業。我們只是更加挑剔了。鑑於贖回金額龐大，贖回額正在減少。很多投資都湧向了這個產業。因此，產量受到了壓縮。它不像我們希望的那樣經過風險調整，我們也不會為了填補這個空缺而去做所有的交易。因此，這個行業會有起伏。而就目前我們所知以及環境狀況來看，它正在縮小。但隨著時間的推移，情況可能會發生變化，而我們——它也隨著時間的推移而演變。這就是我們目前所處的周期階段。

Okay. And then, Angela, the New York Mayor election certainly has gotten a lot of buzz. But Seattle has got an interesting election coming up next week, with the Mayor and City Attorney that are both being challenged from the progressive side. So can you just give some thoughts on how the apartments are looking and what the consequences of both the progressives win? What that means for apartments in Seattle? And then if you think that as a result, that means divesting more Seattle, buying more on the East side? Just want to understand better the ramifications of what folks can expect from next week.

好的。還有，安吉拉，紐約市長選舉確實引起了廣泛關注。但西雅圖下週將迎來一場有趣的選舉，市長和市檢察官都將面臨來自進步派的挑戰。那麼，您能否談談您對這些公寓的看法，以及進步派獲勝可能帶來的後果？這對西雅圖的公寓意味著什麼？那麼，如果你認為這意味著要從西雅圖撤資，在東部地區購買更多資產呢？只是想更了解大家下周可能面臨的情況及其影響。

Hey, Alex. That's a good question. And we've been, as you know, following the legislative environment as closely as possible. It is hard to predict what will happen. But this is what we know. Washington did enact rent control early this year. It was effective around May. And what was enacted was very similar to California. It was CPI plus 7%, max of 10%.

嘿，亞歷克斯。這是個好問題。如您所知，我們一直在密切關注立法環境的變化。很難預測將會發生什麼。但這是我們目前所知道的。華盛頓今年年初確實實施了租金管制。大約在五月生效。而最終頒布的法令與加州的法令非常相似。是 CPI 加 7%，最高不超過 10%。

So in this environment, that signals to us that this is a -- the legislators understand the need to protect tenants from price gouging. But at the same time, they also understand that regulation -- heavy regulation is going to be counterproductive. It's going to reduce housing production and community investment, which ultimately results in higher costs all around. So given that they recently enacted rent control, we would expect naturally that this will play out for some period of time before any further changes are made.

因此，在這種環境下，這表明立法者們理解保護租戶免受價格欺詐的必要性。但同時，他們也明白，過度監管——尤其是嚴格的監管——將會適得其反。這將減少住房生產和社區投資，最終導致各方面成本上升。鑑於他們最近實施了租金管制，我們自然會預期這種情況會持續一段時間，之後才會做出任何進一步的改變。

Okay. But what about on the Mayor -- like if the Mayor of the City -- Attorney changes? Do you see any negative consequence to apartments or not really?

好的。但是如果市長──比如市長──的律師換人了呢？你認為這對公寓會有什麼負面影響嗎？

Hard to say. We haven't heard anything that's being proposed that would give us great concern from the ultra-progressive side. And once again, my example to you is, we've got enacted, had a lot of input from all parties. So it's hard to predict. But so far, I don't -- we don't see a meaningful change right away.

很難說。我們還沒有聽到任何來自極端進步派的提議會讓我們感到非常擔憂。我再次舉個例子來說明，我們已經制定了相關法律，並聽取了各方的意見。所以很難預測。但到目前為止，我還沒有看到——我們沒有立即看到實質的變化。

Okay, thank you.

好的，謝謝。

Adam Kramer, Morgan Stanley.

亞當‧克雷默，摩根士丹利。

Hi. This is Derrick Metzler on for Adam Kramer. Thanks for the question. I was wondering if you could share your thoughts on SB 79, and does this impact your South San Francisco development at all? Or any other potential developments that you might have in the pipeline? And just kind of generally, do you see an impact on future development opportunities from this and kind of in combination with the recent changes to [SICA]?

你好。這是德里克·梅茨勒代替亞當·克雷默上場。謝謝你的提問。我想請您分享您對 SB 79 的看法，以及這項法案是否會對您在南舊金山的開發案產生任何影響？或者您還有其他正在籌備中的潛在發展項目嗎？總的來說，您認為這會對未來的發展機會產生什麼影響？結合最近的一些變化，您認為會有什麼影響？[SICA]？

Hey, Derrick, Rylan here. It's a good question. At a high level, we view this in several of the recent legislative changes that have occurred at the state level is good for California. We need more housing. The SB 79 specifically says that if you're within a 0.5-mile radius of a transit stop in markets where there's greater than 15 rail stations, you can establish the ability to get higher density. So as an illustrative example, if you go to a city and get entitlements that allow, say, 80 units to an acre, now you'd be able to get 120 units to the acre.

嘿，德瑞克，我是瑞蘭。這是個好問題。從宏觀層面來看，我們認為加州近期在州一級發生的幾項立法變革是有利於加州的。我們需要更多住房。SB 79 法案明確規定，在擁有超過 15 個火車站的市場中，如果你位於交通站點 0.5 英里半徑範圍內，你可以獲得更高的密度。舉個例子來說，如果你去一個城市，獲得了每英畝 80 個單位的開發許可，那麼現在你就可以在每英畝建造 120 個單位了。

So this should be beneficial. It's not going to benefit ourselves -- San Francisco deal as we're already through the entitlement period and under construction there. When we think bigger picture of what this could do to the supply landscape in California, it should help on the margin, create some more opportunities. But some mitigating factors to keep in mind. Transit-orient development has been a focus of the state and cities for the past 20 years. The majority of our city's [real] plans are concentrated along transit sites. So in other words, zoning has already become more favorable in these locations.

所以這應該是有益的。這對我們自己沒有好處——舊金山的交易，因為我們已經過了審批期，而且那裡的項目正在建設中。當我們從更宏觀的角度來看待這件事對加州供應鏈格局的影響時，它應該會在某種程度上有所幫助，創造更多機會。但有一些緩解因素需要考慮。過去20年來，以公共交通為導向的開發一直是該州和各城市的重點。我們城市的大部分（實際）規劃都集中在交通樞紐附近。換句話說，這些地區的區域規劃已經變得更加有利。

Secondly, I think the real gating issue today on increased development are just for the returns. The majority of deals that we've underwritten last year have in-place yields around 5%, many of them sub that. So in summary, it's a long-term beneficial to California, but I don't see it taking a dramatic change in the supply outlook for our markets.

其次，我認為如今阻礙開發的最大障礙只是收益問題。我們去年承銷的大部分交易的收益率都在 5% 左右，其中許多交易的收益率低於 5%。總而言之，從長遠來看，這對加州是有利的，但我認為它不會對我們市場的供應前景造成巨大變化。

Great, that's helpful. And that's it for me.

太好了，這很有幫助。我的故事就到此為止了。

Haendel St. Juste, Mizuho Securities.

Haendel St. Juste，瑞穗證券。

Hey, there, guys. Thanks for taking my question. A couple of quick ones for me. First, I was hoping you could comment on the use of concessions across the portfolio where it is today versus maybe a year ago and how it compares across the key regions, SoCal, NorCal, Seattle? And are you offering concessions on renewals? Thanks.

嘿，大家好。謝謝您回答我的問題。我這裡還有幾個簡單的問題。首先，我希望您能就目前整個投資組合中優惠政策的使用情況與一年前相比有何不同，以及在南加州、北加州和西雅圖等主要地區的情況有何差異發表評論？續約時你們會提供優惠嗎？謝謝。

Hey, Haendel. From concession perspective, let's see. Right now, our concession levels are comparable to the same period last year, about one week. And that's pretty typical for this time of the year. In terms of the breakdown across the region, Northern California is right at a week -- actually, everybody is right around a week and not a whole lot different. But keep in mind, concession is also more driven by competitive supply nearby. And so that's going to probably be more of an influence than what's happening with the macro economy. As far as -- we'll see --

嘿，亨德爾。從讓步的角度來看，我們來看看。目前，我們的讓步幅度與去年同期相當，大約持續一週。這種情況在每年的這個時候都很常見。就整個地區的分佈而言，北加州大約需要一周時間——實際上，各地的時間都差不多需要一周時間，差異不大。但請記住，特許經營權的授予也更多地受到附近競爭性供應的影響。因此，這可能比宏觀經濟情勢的影響更大。至於——我們拭目以待。--

Concessions on renewals.

續約方面給予讓步。

On renewals, no, we don't -- it's de minimis, negligible on renewals. It's mostly on new leases.

續約方面，不，我們沒有──續約方面的影響微乎其微，可以忽略不計。大部分是新租約。

Got you. Got you. Appreciate the color. And then my second question, I guess, it's on LA and the new versus renewal spreads you're seeing there. I think you mentioned the blends in LA were around 1%. So assuming renewals are low single-digit positive, that would imply new leases are negative and a pretty decent spread there. So again, I'm curious on if you could set some color on what that spread is on the new versus renewals in LA? And if that's a sustainable spread and if you think that maybe perhaps renewals could come under pressure? Thanks.

抓到你了。抓到你了。欣賞這種顏色。那麼我的第二個問題，我想是關於洛杉磯以及你在那裡看到的新房子與續約房之間的價格差異。我想你之前提到過洛杉磯的混合酒精含量在 1% 左右。因此，假設續租率是較低的個位數正成長，那就意味著新租約為負成長，而且兩者之間存在相當大的利差。所以，我再次想問一下，您能否具體說明洛杉磯新房和續租房之間的差距是多少？如果這種成長勢頭能夠持續，而且你認為續約可能會面臨壓力？謝謝。

Yes, so renewals are negative once again, but that's not unusual for this time of the year. So they're, say -- we're about, say, 100 basis points in the negative for Southern California. I'm sorry, I said -- I mean new leases. New leases are negative, yes. And LA is much wider in that. LA is closer to 1.8%. So closer to, say, negative 2% on new leases. Renewal, they're sitting around mid-3% in September for Southern California. And LA is in the low-3% range, so not too different. Renewals are pretty consistent across the board, generally speaking.

是的，續約率再次為負，但這在每年的這個時候並不罕見。比如說，南加州的民調結果比我們低了約 100 個基點。對不起，我說——我的意思是新的租約。新租約確實會帶來負面影響。而洛杉磯在這方面的範圍要廣得多。洛杉磯的這一比例接近 1.8%。所以新租約的利率比較接近負2%左右。9 月南加州的續約率在 3% 左右。洛杉磯的比例在 3% 左右，所以差異不大。總的來說，續約情況相當穩定。

New lease, it's hard to say whether it's going to come under pressure. I mean it's, of course, going to follow market rents ultimately end of next year. And that has a lot of factors. It's job growth. That's where supply is going to be. And what we're seeing right now with supply decreasing and occupancy stabilizing in LA, we wouldn't expect more pressure on new leases next year versus this year.

新租約能否承受壓力，目前還很難說。我的意思是，當然，到明年年底，租金最終還是會跟著市場行情。這其中有很多因素。這是就業成長。供應點就在那裡。鑑於目前洛杉磯的供應量減少，入住率趨於穩定，我們預計明年新租約的壓力不會比今年更大。

And so just to give you an example, occupancy, net of delinquency right now is sitting at above 94%, which is great. In September, it was still below 94%. It was 93.9%. So it's been steadily increasing. So that tells us that this market is stable. And there is underlying fundamentals to support the stability and potentially growth.

舉個例子來說，目前扣除拖欠款項後的入住率超過 94%，非常好。9月份，這一比例仍低於94%。是93.9%。所以它一直在穩步增長。這說明這個市場是穩定的。而且，其穩定性和潛在成長也存在一些基本面支撐。

Wonderful. Thank you for the color.

精彩的。謝謝你提供的色彩。

Julien Blouin, Goldman Sachs.

Julien Blouin，高盛集團。

Thank you for taking my question. In Seattle, you talked about the fact that Seattle doesn't really benefit from the AI tailwinds the way SF does. But I was wondering, do you think it could actually end up being a relative loser within the tech markets if investment in talent within tech sort of continues to flow towards AI? Do you see any impact from that?

感謝您回答我的問題。在西雅圖，你談到西雅圖並沒有像舊金山那樣真正受益於人工智慧帶來的利多。但我一直在想，如果科技領域的人才投資繼續流向人工智慧，你認為人工智慧最終會不會在科技市場中相對落後呢？你認為這會造成什麼影響？

Well, I think the Seattle economy has a good stable group of industries anchoring it. And so I don't see that AI being ultimately a negative to not just Seattle, but any other economy. Because you can make the same argument for parts of Southern California or other areas outside of California where there's AI presence. We do view that AI will be net additive and the economy in Seattle will continue to grow. You've got Amazon there, which is huge. Microsoft is very solid and quite a few other ones. So we don't see AI as a net negative for Seattle.

我認為西雅圖的經濟有一批穩定且實力雄厚的產業支撐。因此，我認為人工智慧最終不僅對西雅圖，而且對任何其他經濟體都不會產生負面影響。因為你也可以對南加州部分地區或加州以外的其他人工智慧已存在的地區提出同樣的論點。我們認為人工智慧將帶來淨收益，西雅圖的經濟也將持續成長。那裡有亞馬遜，那可是個龐然大物。微軟非常可靠，其他一些公司也很不錯。因此，我們認為人工智慧對西雅圖來說總體上不是負面影響。

Got it. Thank you. And then maybe just a quick one on Contra Costa where occupancy fell about 60 bps sequentially in the third quarter. Can you just give us a sense of what you're seeing in that market?

知道了。謝謝。然後，也許可以簡單提一下康特拉科斯塔縣，該縣第三季的入住率環比下降了約 60 個基點。您能否簡要介紹一下您在該市場觀察到的情況？

Yes. Contra Costa, I mean, that market is going to ebb and flow, and it's been digesting a huge amount of supply over the past two years. And so we've -- we pushed rents because we saw some strength there. And then, of course, ultimately, sometimes that comes in at the expense of occupancy. But we did see sequential revenue growth there, which was a good indicator that the market is doing fine.

是的。我的意思是，康特拉科斯塔縣的市場總是有起有落，而且在過去兩年裡，它已經消化了大量的供應。因此，我們提高了租金，因為我們看到了租金方面的強勁勢頭。當然，最終，有時這會以犧牲入住率為代價。但我們確實看到了該地區的營收環比成長，這很好地表明市場狀況良好。

Okay, great. Thank you.

好的，太好了。謝謝。

Robin Haneland, BMO Capital Markets.

Robin Haneland，BMO資本市場。

Hi, everyone. You leaned into Santa Clara acquisitions as of late. Can you elaborate on the long-term potential in these markets versus buying back your stock today? And also curious, is rebalancing your exposure to the city of San Francisco is on the horizon?

大家好。你最近加大了對聖克拉拉的收購力道。您能否詳細說明這些市場的長期潛力與今天回購股票相比有何不同？另外，我們也很好奇，您是否打算重新調整對舊金山的投資比例？

Robin, Rylan here. I mean, if you look at that 16.1% and where we've been able to source deals in that initial yield layered in with what we think the micro market supply outlook and the potential for rent growth there, as Angela mentioned earlier this year, we think that was definitely the highest risk-adjusted return opportunity available to us.

我是羅賓，我是萊蘭。我的意思是，如果你看看 16.1% 的收益率，以及我們能夠以這個初始收益率找到的交易，再加上我們認為的微觀市場供應前景和租金增長潛力（正如 Angela 今年早些時候提到的），我們認為這絕對是我們所能獲得的最高風險調整後回報機會。

As we've said in recent days with the stock falling off, that math is being reevaluated. But we feel really confident and excited about the acquisitions that we have been able to acquire in there. And again, the micro market fundamentals in terms of the supply outlook for the foreseeable future. I think your second part of your question was San Francisco. We have underwritten every institutional deal that's come to market in San Francisco.

正如我們最近幾天所說，隨著股價下跌，這種計算方法正在重新評估。但我們對我們在那裡取得的收購感到非常有信心和興奮。再次強調，從可預見的未來供應前景來看，微觀市場基本面仍不那麼樂觀。我認為你問題的第二部分是關於舊金山的。我們承銷了舊金山市場上所有機構投資者的交易。

There have not been a lot of them. And what we generally found is that the cap rates there have been even more aggressive. The competitive bidding has been made the relative value opportunity for us to create value on the buy in San Francisco is really not emerged relative to what we -- where we were able to purchase along the Peninsula with similar fundamental outlook. So we will continue to underwrite everything in Northern California and step in if we see a unique opportunity.

這類案例並不多。我們普遍發現，那裡的資本化率甚至更高。激烈的競標使得我們在舊金山的收購機會相對於我們先前在半島地區以類似基本面進行收購的機會而言，並沒有真正顯現出來。因此，我們將繼續為北加州的所有項目提供擔保，並在發現獨特機會時介入。

And then we noticed that San Diego and Oakland, seeing decelerating same-store revenue. Can you maybe supplement us with new lease rates in the markets? And then color on how demand is trending in those two?

然後我們注意到聖地牙哥和奧克蘭的同店收入成長放緩。您能否提供一些最新的市場租賃價格資訊？然後，請分析一下這兩個市場的需求趨勢？

Yes, so San Diego, we've had supply concentration in pockets of North City and North Coast submarkets that directly competes with our portfolio, although that is starting to abate. So that's good. And of course, it's -- San Diego is influenced by a general soft demand in Southern California and the US. And that's -- those are the key drivers of the weakness.

是的，聖地牙哥的情況是，北城和北海岸部分地區的供應過於集中，直接與我們的投資組合構成競爭，儘管這種情況正在開始緩解。那很好。當然，聖地牙哥也受到了南加州和美國整體疲軟需求的影響。這就是──這些都是造成這種弱點的關鍵因素。

Similarly, on Contra Costa as well, we've had much heavier supply in Contra Costa for several years. But that market has been recovering. Although we don't have -- we actually have sequential improvements in revenues for Contra Costa. So it's just San Diego where we don't have sequential growth in gross revenues.

同樣，康特拉科斯塔縣的供應量也已經連續幾年遠高於其他地方。但該市場一直在復甦。雖然我們沒有——實際上，康特拉科斯塔的收入逐年增長。所以只有聖地牙哥的毛收入沒有實現連續成長。

Thank you.

謝謝。

Rich Anderson, Cantor Fitzgerald.

Rich Anderson，Cantor Fitzgerald。

Hey, thanks. Good morning out there. So Jeff Spector asked a question about jobs. And he said he understood the answer, and I didn't. So let me see if I can sort of ask it a different way. What is your view when you think of West Coast jobs in 2026 versus national jobs in 2026?

嘿，謝謝。早安.於是傑夫·斯佩克特問了一個關於工作的問題。他說他明白了答案，但我不明白。那我換個方式問吧。您如何看待 2026 年西海岸的就業機會與 2026 年全國的就業機會？

When you keep in mind perhaps a blessing and curse impact on jobs from AI, entertainment in LA, Seattle kind of being somewhere in the middle with Amazon, do you think that your markets from a job growth perspective alone will outperform the nation, in line with the nation, maybe below the nation? What is your view on jobs going into 2026, if you have one right now?

考慮到人工智慧對就業可能帶來的利弊，洛杉磯的娛樂業，以及西雅圖（亞馬遜所在地）的情況介於兩者之間，您認為僅從就業成長的角度來看，您的市場表現會優於全國、與全國持平，還是會低於全國？如果您現在有想法，您對2026年的就業情況有何看法？

Hey, Rich. Our view with respect to jobs is that we should outperform the US average. The question here is magnitude. And that, as we would all expect, is going to be influenced by the macro economy. But what we're seeing is Northern California has of course the AI benefit that is a catalyst. It's also in a recovery phase. And so we are seeing positive immigration, which is not the historical norm. So that's going to benefit Northern California.

嘿，里奇。我們認為，就就業而言，我們的表現應該優於美國平均。這裡的問題是規模。不出所料，這將受到宏觀經濟的影響。但我們看到的是，北加州當然擁有人工智慧帶來的優勢，這無疑是個催化劑。它也處於恢復階段。因此，我們看到了積極的移民趨勢，但這並非歷史上的常態。所以這將有利於北加州。

Seattle is anchored by the broad tech economy, and which has gone through its massive pivoting and layoff about 1.5 years ago. So it's stable with upside. And in Southern California is going to perform similar to the US; albeit with more professional services, it should do better. But more importantly, fundamentals in LA we see has troughed or near the bottom. And so while we don't know how long it's going to take to recover, we do see that there should be more upside than downside in that market. So hopefully, that gives you a better breakdown that you're looking for.

西雅圖以龐大的科技經濟為支柱，而科技經濟在大約 1.5 年前經歷了大規模的轉型和裁員。所以它既穩定又有上漲空間。南加州的情況將與美國類似；儘管專業服務更多，但應該會更好。但更重要的是，我們看到洛杉磯的基本面已經觸底或接近觸底。因此，雖然我們不知道市場需要多久才能復甦，但我們認為該市場上漲的空間應該大於下跌的空間。希望這能給你你想要的更詳細的分析。

Yes, thanks. That's great. I appreciate that. Second question, thinking about perhaps moving some of your investment incrementally more from Southern California to Northern California. Obviously, much talked about with the Olympics coming to LA, perhaps housing for athletes. I wonder if there'll be an opportunity to sell in front of the Olympics now.

好的，謝謝。那太棒了。我很感激。第二個問題，您是否考慮將部分投資逐步從南加州轉移到北加州？顯然，隨著奧運會在洛杉磯舉行，運動員住房問題成為了人們熱議的話題。我想知道現在是否還有機會在奧運會前進行銷售。

I'm thinking in 1996 in Atlanta when there was sort of this wave of housing, and then there was a hangover effect after the Olympics. That was a little disruptive. Atlanta obviously became a great market eventually. But do you want to be there for a year after the Olympics in bulk? I'm wondering if you're thinking about your business as an option for the Olympic Committee, as a mechanism to move more product, maybe a little bit quicker out of that area and into other areas of your portfolio? Thanks.

我想起了 1996 年的亞特蘭大，當時出現了一波住房熱潮，然後奧運結束後又出現了滯後效應。那有點擾亂秩序。亞特蘭大最終顯然成為了一個巨大的市場。但你願意在奧運結束後的一年裡大量待在那裡嗎？我想知道您是否考慮過將您的業務作為奧委會的選項，作為一種機制，以便更快地將更多產品從該領域轉移到您投資組合中的其他領域？謝謝。

Rich, Rylan here. Interesting question. As we mentioned, we are fundamentally a little bit more positive on the LA market going into next year as the supply is coming down. And we do see some near-term catalysts as it relates to the Olympics. We do not plan to convert any of our existing leases into short-term rentals to take advantage to the extent that that was your question. That's pretty difficult to do with existing tenants hoping to stay in and be able to enjoy the Olympics and the World Cup in our units.

我是Rylan，Rich。有趣的問題。正如我們之前提到的，由於供應量下降，我們對明年洛杉磯市場的前景總體上更加樂觀。我們看到一些與奧運相關的近期催化劑。我們沒有計劃將任何現有租賃合約轉換為短期租賃合約來利用其優惠政策，所以這方面我們沒有這樣的計劃。對於希望繼續住在我們公寓並享受奧運會和世界盃的現有租戶來說，這很難做到。

Just speaking broadly on the transaction market, outside of downtown LA and the West side, the tri-cities to the north, these are still well-bid markets with lots of transactions occurring in that 4.5% or 4.75% type range. We saw a deal closed last quarter. Marina del Rey, that was a sub-4.5% cap rate.

就交易市場而言，除了洛杉磯市中心和西區以外，北部的三城地區仍然是競價活躍的市場，許多交易的收益率都在 4.5% 或 4.75% 左右。我們看到上個季度達成了一筆交易。馬裡納德爾雷的資本化率低於 4.5%。

So there is still a lot of capital interest in the broader LA market, with downtown being a notable exception, as it's still challenged with the operating performance. I think we'll see more transaction opportunities in downtown LA in the next year. And as we do with all of our markets, we're underwriting everything and looking to take advantage of any mispriced opportunities.

因此，洛杉磯整體市場仍然吸引著大量資本的興趣，但市中心是一個明顯的例外，因為它的營運表現仍然面臨挑戰。我認為明年洛杉磯市中心將會出現更多交易機會。就像我們對待所有市場一樣，我們對所有項目進行承銷，並尋求利用任何定價錯誤的機會。

Okay. Great, Rylan. I appreciate that. Thanks, everyone.

好的。太好了，瑞蘭。我很感激。謝謝大家。

(Operator Instructions) Linda Tsai, Jefferies.

（操作說明）Linda Tsai，傑富瑞集團。

Hi, thanks. It hasn't really come up on the call, but are you hearing of any impact on employment outlook as it relates to the higher cost of [HB1] visas going forward?

您好，謝謝。雖然電話會議上沒有真正討論到這個問題，但您是否聽說[HB1]簽證成本上漲會對就業前景產生任何影響？

Hey, Linda. We actually -- what we're hearing is that it potentially could be a net positive because the intention of this legislation is really to minimize the middleman, some of these H-1B consulting firms like Deloitte for example. And what -- this will allow the large companies that can actually pay the fee to just go direct instead of having to pay a consulting fee and then still having -- incurring other costs. And potentially, what we're hearing is that they can actually get a better or increased allocation, which would ultimately be good. So we don't expect a meaningful impact to Essex, and it may actually become a net benefit.

嗨，琳達。實際上，我們聽到的消息是，這可能最終會帶來積極影響，因為這項立法的目的確實是為了最大限度地減少中間環節，例如像德勤這樣的 H-1B 諮詢公司。這樣一來，那些有能力支付費用的大公司就可以直接進行合作，而無需支付諮詢費，也無需承擔其他費用。而且，我們聽到的消息是，他們實際上可以獲得更好或更多的撥款，這最終將是一件好事。因此，我們預計不會對艾塞克斯郡造成實質影響，實際上可能會帶來淨收益。

Thank you.

謝謝。

Alex Kim, Zelman & Associates.

Alex Kim，Zelman & Associates。

Hey, thanks for the time. Just a quick one for me. Could you walk through the decline in year-over-year repair and maintenance costs, and can that be attributed to the continued decrease of same-store turnover? And is it sustainable into Q4 and 2026 and beyond?

嘿，謝謝你抽出時間。我只需要簡單回答一下。能否詳細說明一下維修保養成本逐年下降的原因，以及這是否可以歸因於同店週轉率的持續下降？這種模式能否持續到第四季、2026年及以後？

Yes. This is Barb. Repair and maintenance is lumpy, and it does vary from quarter to quarter and even from year to year. I think we have done a good job on trying to control our costs via our procurement programs. We are seeing a little bit lower turnover. And the delinquency turnover that we had incurred the last few years has been much more stable this year, so it's a combination of a variety of things.

是的。這是芭芭拉。維修和保養費用波動較大，每季甚至每年都會有所不同。我認為我們透過採購計劃在控製成本方面做得很好。我們看到人員流動率略有下降。過去幾年我們遇到的拖欠貸款週轉率今年要穩定得多，這是多種因素共同作用的結果。

Too early to talk about 2026. We're still in the midst of our budget process, so more to follow. What I would say, though, about overall controllable expenses, we've done a good job keeping those around 3% for many years. And I don't see anything on the horizon that's going to change that heading into 2026.

現在談2026年還為時過早。我們仍在進行預算編制工作，後續還會有更多資訊。不過，關於整體可控費用，我想說的是，多年來我們做得很好，將其控制在 3% 左右。而且我認為，到 2026 年，這種情況不會有任何改變。

All right. Thank you.

好的。謝謝。

Thank you. And this does conclude today's question-and-answer session. And also, this does conclude today's conference, and you may disconnect your lines at this time. We thank you for your participation.

謝謝。今天的問答環節到此結束。此外，今天的會議到此結束，您可以斷開線路了。感謝您的參與。