First Industrial Realty Trust Inc (FR) 2024 Q3 法說會逐字稿

Good day, and welcome to the First Industrial Realty Trust, Inc., third-quarter results call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎來到第一工業地產信託公司第三季業績電話會議。（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Art Harmon, Senior Vice President of Investor Relations and Marketing. Please go ahead, sir.

我現在想將會議交給投資人關係和行銷資深副總裁阿特‧哈蒙 (Art Harmon)。請繼續，先生。

Thank you, Dave. Hello, everybody, and welcome to our call.

謝謝你，戴夫。大家好，歡迎您的來電。

Before we discuss our third-quarter results and our updated guidance for the year, let me remind everyone that our call may include forward-looking statements as defined by federal securities laws. These statements are based on management's expectations, plans, and estimates of our prospects. Today's statements may be time sensitive and accurate only as of today's date, October 17, 2024. We assume no obligation to update our statements or the other information we provide.

在我們討論第三季業績和今年更新的指導之前，讓我提醒大家，我們的電話會議可能包括聯邦證券法定義的前瞻性陳述。這些陳述是基於管理層對我們前景的期望、計劃和估計。今天的聲明可能具有時間敏感性，並且僅截至今天（2024 年 10 月 17 日）才準確。我們不承擔更新我們的聲明或我們提供的其他資訊的義務。

Actual results may differ materially from our forward-looking statements, and factors which could cause this are described in our 10-K and other SEC filings. You can find a reconciliation of non-GAAP financial measures discussed in today's call in our supplemental report and our earnings release. The supplemental report, earnings release, and our SEC filings are available at firstindustrial.com under the Investors tab.

實際結果可能與我們的前瞻性陳述有重大差異，我們的 10-K 和其他 SEC 文件中描述了可能導致這種情況的因素。您可以在我們的補充報告和收益發布中找到今天電話會議中討論的非公認會計準則財務指標的調節表。補充報告、收益發布和我們向 SEC 提交的文件可在firstinduscial.com 的「投資者」標籤下取得。

Our call will begin with remarks by Peter Baccile, our President and Chief Executive Officer; and Scott Musil, Chief Financial Officer, after which we'll open it up for your questions. Also with us today are Jojo Yap, Chief Investment Officer; Peter Schultz, Executive Vice President; Chris Schneider, Executive Vice President of Operations; and Bob Walter, Executive Vice President of Capital Markets and Asset Management.

我們的電話會議將由我們的總裁兼執行長 Peter Baccile 致詞開始；和財務長 Scott Musil，之後我們將開放回答您的問題。今天與我們一起出席的還有首席投資長 Jojo Yap；彼得‧舒爾茨，執行副總裁； Chris Schneider，營運執行副總裁；沃爾特（Bob Walter），資本市場與資產管理執行副總裁。

Now, let me turn the call over to Peter.

現在，讓我把電話轉給彼得。

Thank you, Art, and thank you all for joining us today. The First Industrial team delivered another great quarter with solid operating metrics, along with some important new leases and capital deployment activity. We continue to drive cash flow growth for our portfolio via contractual escalations in our leases, capturing embedded rent growth, on rollovers, and continued development leasing, all of which position us to deliver strong growth and funds from operations.

謝謝你，阿特，也謝謝大家今天加入我們。第一工業團隊又以穩健的營運指標以及一些重要的新租賃和資本部署活動交付了出色的季度業績。我們透過租賃合約升級、捕獲內含租金成長、展期和持續開發租賃，繼續推動我們投資組合的現金流成長，所有這些都使我們能夠實現強勁的成長和營運資金。

Before getting into specifics, let me update you on the industrial market broadly. According to CBRE-EA, US industrial market vacancy increased a modest 10 basis points to 5.8%, reflecting that most of last year's development starts have now come online.

在詳細介紹之前，讓我先向您介紹一下工業市場的大致情況。根據 CBRE-EA 的數據，美國工業市場空置率小幅上升 10 個基點至 5.8%，反映出去年大部分開發案現已上線。

Completions for third quarter totaled 87 million square feet. This is down approximately 30% compared to last quarter and the lowest quarterly completion number since the third quarter of 2021. For our target markets, completions were 45 million square feet, down 40% from the prior quarter. New starts remain disciplined, totaling 36 million square feet in the third quarter, down 68% from the peak in the third quarter of 2022.

第三季完工面積總計 8,700 萬平方英尺。與上季相比下降了約 30%，是自 2021 年第三季以來的最低季完成數量。對於我們的目標市場，竣工面積為 4,500 萬平方英尺，比上一季下降 40%。新開工面積仍保持規律，第三季總計 3,600 萬平方英尺，較 2022 年第三季的峰值下降 68%。

On the demand side, the third quarter was active with net absorption nationally of 54 million square feet. This brought the year-to-date total to approximately 125 million square feet, of which 75 million were in our target markets.

需求方面，第三季表現活躍，全國淨吸收量達 5,400 萬平方英尺。這使得年初至今的總面積達到約 1.25 億平方英尺，其中 7,500 萬平方英尺位於我們的目標市場。

Renewal leasing, in particular, remained strong. Since our last call, we successfully renewed the last of the three large 2024 Southern California expirations with a cash rental rate change of more than 150%. As of the date of this call, we're now through 97% of our 2024 lease expirations by square feet. Our cash rental rate increase is 51%, which is a strong follow-up to the 58% cash rental rate growth we delivered on our 2023 commencements. Congratulations to our leasing teams for back-to-back years of outstanding performance on this metric.

尤其是續租租賃依然強勁。自上次電話會議以來，我們成功續簽了南加州 2024 年三大到期合約中的最後一個，現金租金變動超過 150%。截至本次電話會議之日，我們 2024 年租賃面積的 97%（以平方英尺計算）已到期。我們的現金租金率成長了 51%，這是我們在 2023 年開業時現金租金率成長 58% 的強力後續行動。恭喜我們的租賃團隊連續多年在此指標上取得了出色的表現。

Looking at our 2025 lease expirations, we're making good progress and are now through 37% by square footage, which is similar to our pace of progress last year. Together with new leasing, our cash rental rate increase for leases signed with 2025 commencement dates is 33%. More than half of this population is comprised of the 1.3 million square foot fixed rate renewal in Central PA we discussed on our last call. We will give you a refined view of our thoughts on our estimated 2025 cash rental rate increase on our fourth-quarter call with the benefit of budget reviews and incremental signings.

看看我們 2025 年的租約到期情況，我們取得了良好的進展，目前面積已達到 37%，與去年的進展速度相似。加上新租賃，我們在 2025 年開始日期簽署的租賃的現金租金增幅為 33%。其中超過一半的人口來自我們上次電話會議中討論過的賓州中部 130 萬平方英尺的固定費率更新項目。借助預算審查和增量簽約，我們將在第四季度電話會議上向您詳細介紹我們對預計 2025 年現金租金上漲的想法。

Regarding development leasing, as we highlighted on our last call, in the third quarter, we inked a full building lease for our 461,000-square-foot First Pioneer project in the Inland Empire East to a 3PL, plus a 61,000-square-foot lease at our First 76 project in Denver.

關於開發租賃，正如我們在上次電話會議中所強調的那樣，在第三季度，我們向 3PL 簽署了位於內陸帝國東部 461,000 平方英尺 First Pioneer 項目的完整建築租賃合同，以及 61,000 平方英尺的租賃合同我們在丹佛的第一個76 項目。

Turning now to capital deployment, we continue to closely monitor demand and competing supply in our target investment markets to determine potential incremental starts as we wrap up 2024. Since our last call, we launched a 542,000-square-foot development at our First Rockdale Park in Nashville. Our total projected investment is $54 million with an expected cash yield of approximately 7%. The current supply-demand dynamic in Nashville is attractive, and we like the long-term drivers of this market. Current vacancy stands at just 2.7%, and unleased new supply represents about 2% of the total stock.

現在轉向資本部署，我們將繼續密切監控目標投資市場的需求和競爭供應，以確定 2024 年結束時潛在的增量啟動。自上次電話會議以來，我們在納許維爾的 First Rockdale Park 啟動了一個 542,000 平方英尺的開發項目。我們的預計總投資為 5,400 萬美元，預計現金收益率約為 7%。納許維爾目前的供需動態很有吸引力，我們喜歡這個市場的長期驅動力。目前空置率僅2.7%，已釋出的新增供應約佔總庫存的2%。

We also acquired a four-building 211,000-square-foot park in Houston's Southeast submarket with close proximity to the port. The buildings are 100% leased on a long-term basis. Our total investment is $29 million, and the in-place cash yield is approximately 6%.

我們還在休士頓東南子市場收購了一座佔地 211,000 平方英尺的四棟建築公園，靠近港口。這些建築物100%長期出租。我們的總投資為2900萬美元，到位現金收益率約為6%。

Moving now to dispositions, as discussed on our last call, we sold a portfolio in New Jersey for $82 million. In the fourth quarter to date, we've sold three buildings in Pennsylvania totaling 163,000 square feet for a total of $19 million. This brings our year-to-date total to $157 million.

現在轉向處置，正如我們上次電話會議中所討論的那樣，我們以 8,200 萬美元的價格出售了新澤西州的一個投資組合。迄今為止，第四季度我們已在賓州出售了三棟建築，總面積為 163,000 平方英尺，總價值為 1,900 萬美元。這使得我們今年迄今的總金額達到 1.57 億美元。

With that, let me turn it over to Scott to walk you through further details on our results and guidance.

接下來，讓我將其交給斯科特，讓他帶您了解有關我們的結果和指導的更多詳細資訊。

Thanks, Peter. Let me recap our results for the quarter.

謝謝，彼得。讓我回顧一下我們本季的業績。

NAREIT funds from operations were $0.68 per fully diluted share, compared to $0.62 per share in 3Q 2023. Our cash same-store NOI growth for the quarter, excluding termination fees, was 7.6%. The results in the quarter were primarily driven by increases in rental rates on new and renewal leasing and rental rate bumps embedded in our leases, partially offset by higher free rent and lower average occupancy.

NAREIT 營運資金為每股完全稀釋後的每股 0.68 美元，而 2023 年第三季為每股 0.62 美元。本季我們的現金同店 NOI 成長率（不含終止費用）為 7.6%。本季度的業績主要是由於新租賃和續租租賃的租金上漲以及我們租賃中的租金上漲所推動，但部分被免費租金上漲和平均入住率下降所抵消。

Excluded from the same-store calculation is the accelerated recognition of a tenant improvement reimbursement related to our tenant, boohoo, which leases 1.1 million square feet in Central Pennsylvania. Including this amount, our third-quarter cash same-store NOI growth was 11.9%. I will have some additional comments on boohoo shortly.

同店計算中不包括與我們的租戶 boohoo 相關的租戶改善補償的加速確認，該租戶在賓夕法尼亞州中部租賃了 110 萬平方英尺。計入此金額，我們第三季現金同店 NOI 成長率為 11.9%。我很快就會對 boohoo 發表一些補充評論。

We finished the quarter with in-service occupancy of 95%. Within the in-service portfolio, we have approximately 200 basis points of lease up opportunity from developments placed in service in 2023 and 2024. Summarizing our leasing activity during the quarter, approximately 3.5 million square feet of leases commenced. Of these, 500,000 were new, 2.2 million were renewals, and 900,000 were for developments and acquisitions with lease up.

本季結束時，我們的服務入住率達到 95%。在現役投資組合中，我們在 2023 年和 2024 年投入使用的開發案中擁有約 200 個基點的租賃機會。總結本季我們的租賃活動，已開始租賃約 350 萬平方英尺。其中，50萬套是新建的，220萬套是續租的，90萬套是用於開發和收購併租賃的。

Turning back to our lease with boohoo, as reported in the press, they are ceasing operations at our building for which they have 10 years remaining on their lease. Due to the cessation of their operations, we have written off their straight-line rent asset and tenant improvement reimbursement liability, the net result of which is a $0.01 per share reduction in our 2024 NAREIT FFO. They are current on the rent and have a shorter-term sublease to a 3PL for about 40% of the building. Also keep in mind that we have a security deposit in the form of a letter of credit which covers about a year's worth of rent.

回到我們與 boohoo 的租約，正如媒體報導的那樣，他們將停止在我們大樓的運營，因為他們的租約還剩 10 年。由於他們停止運營，我們註銷了他們的直線租金資產和租戶改善補償負債，最終結果是我們的 2024 年 NAREIT FFO 每股減少 0.01 美元。他們目前正在支付租金，並將大樓約 40% 的面積短期轉租給 3PL。另請記住，我們有信用證形式的保證金，可支付大約一年的租金。

Let me quickly review our updated guidance for 2024. Our guidance range for NAREIT FFO is now $2.61 to $2.65 per share, which is a tightening of the range and an increase at the midpoint of $0.02 per share since our last earnings call. Key assumptions have been tightened as we only have one quarter remaining in 2024. End of fourth-quarter occupancy range of 95% to 97%, which implies a quarter-end average for the year of 95.2% to 95.7%. Our occupancy guidance now assumes about 800,000 square feet of development leasing we had previously slated for the fourth quarter will now take place in 2025.

讓我快速回顧一下我們更新的 2024 年指南。我們對 NAREIT FFO 的指導範圍目前為每股 2.61 美元至 2.65 美元，這是該範圍的收緊，並且自我們上次財報電話會議以來每股中點增加了 0.02 美元。由於 2024 年只剩下四分之一的時間，關鍵假設已經收緊。第四季末的入住率範圍為 95% 至 97%，這意味著全年季度末的平均入住率為 95.2% 至 95.7%。現在，我們的入住率指導假設我們之前計劃在第四季度進行約 800,000 平方英尺的開發租賃，現在將在 2025 年進行。

Fourth-quarter cash same-store NOI growth before termination fees of 8% to 10%. This implies a 7.75% to 8.25% range for the year, which is a 25-basis-point increase at the midpoint since our last earnings call. Note that the same-store guidance excludes the impact of the accelerated recognition tenant improvements related to the Central Pennsylvania lease in 2024 and the one-time tenant reimbursement in 2023 that we previously disclosed.

第四季未計終止費用的同店現金 NOI 成長 8% 至 10%。這意味著今年的成長範圍為 7.75% 至 8.25%，這是自我們上次財報電話會議以來的中位數成長 25 個基點。請注意，同店指導不包括我們先前揭露的與 2024 年賓州中部租賃相關的加速認可租戶改善和 2023 年一次性租戶報銷的影響。

Guidance includes the anticipated 2024 costs related to our completed and under construction developments at September 30. For the full year of 2024, we expect to capitalize about $0.06 per share of interest. And our G&A expense guidance range is $39.5 million to $40.5 million.

指導包括與我們截至 9 月 30 日已竣工和在建開發項目相關的 2024 年預期成本。2024 年全年，我們預計每股利息資本化約為 0.06 美元。我們的一般管理費用指導範圍為 3950 萬美元至 4050 萬美元。

Let me turn it back over to Peter.

讓我把它轉回給彼得。

Thanks again to the First Industrial team for another solid quarterly performance. Through our focused strategy and capital allocation actions, we've created a high-quality portfolio that is well positioned to outperform through the business cycle.

再次感謝第一工業團隊再次取得穩健的季度表現。透過我們的重點策略和資本配置行動，我們創建了一個高品質的投資組合，該投資組合在整個商業週期中都處於領先地位。

We have embedded growth opportunities within our portfolio, and we have future growth opportunities from our current landholding on which we can build over 14 million square feet of highly functional and well-located logistics facilities. Our balance sheet is strong and we have flexibility with no maturities until 2026, assuming the exercise of extension options in our bank loans.

我們在我們的投資組合中嵌入了成長機會，並且我們從當前的土地持有中獲得了未來的成長機會，我們可以在這些土地上建造超過 1400 萬平方英尺的功能齊全且位置優越的物流設施。我們的資產負債表穩健，並且具有靈活性，假設我們的銀行貸款行使延期選擇權，則在 2026 年之前不會到期。

Operator, with that we're ready to open it up for questions.

接線員，我們準備好開放提問了。

(Operator Instructions) Blaine Heck, Wells Fargo.

（操作員說明）Blaine Heck，富國銀行。

Great. Thanks. Good morning. So occupancy guidance implies upside from the third quarter, but it has a relatively wide range of outcomes between 95% and 97% at year-end. I guess, can you just talk about some of the biggest drivers in the lease up portfolio that could kind of push you towards the upper end of that guidance? Are there any specific large leases you're working on that you can maybe give us some color on?

偉大的。謝謝。早安.因此，入住率指引意味著較第三季有所上升，但年底的結果範圍相對較大，介於 95% 至 97% 之間。我想，您能否談談租賃投資組合中一些最大的驅動因素，這些驅動因素可能會推動您達到該指導的上限？您是否正在處理任何特定的大型租賃，您可以向我們提供一些資訊嗎？

Yeah. This is Chris. If you look at the occupancy drop, about half of it was from the development portfolio that we've talked about. The other half was from the core portfolio. As we stand here today, we certainly do have some activity or we're talking to some tenants, but we thought it was prudent to push back the lease up with only two months left in the quarter.

是的。這是克里斯。如果你看一下入住率的下降，你會發現其中大約一半來自我們討論過的開發投資組合。另一半則來自核心投資組合。當我們今天站在這裡時，我們確實有一些活動，或者我們正在與一些租戶交談，但我們認為在本季度僅剩兩個月的情況下推遲租約是謹慎的做法。

Hey, Blaine. It's Scott. I think development leasing is the key to hit the high, and frankly, it could be going below the midpoint. We've got 400,000 square foot of development leasing built into our guidance in the fourth quarter. That's about 60 basis points. If we get more than that, we'll be above our midpoint occupancy guidance.

嘿，布萊恩。這是斯科特。我認為開發租賃是創高的關鍵，坦白說，它可能會跌破中點。我們在第四季度的指導中納入了 400,000 平方英尺的開發租賃。這大約是60個基點。如果我們得到的結果超過這個數字，我們的入住率指引值就會高於中點。

Great. That's very helpful. And then maybe just a little bit more of a high-level question. I guess given that you all have a relatively diverse portfolio geographically, it seems as though you're in a good position to talk about which markets you think are poised to inflect sooner than others. I guess, can you just talk about which markets you're feeling best about from a supply and demand standpoint and which you think might take longer to come back to seeing rental rate growth?

偉大的。這非常有幫助。然後也許只是一個更高層次的問題。我想，鑑於你們在地理位置上都擁有相對多樣化的投資組合，似乎你們有一個很好的位置來談論你們認為哪些市場將比其他市場更早改變。我想，您能否從供需的角度談談您對哪些市場感覺最好，以及您認為哪些市場可能需要更長的時間才能看到租金成長？

Sure. Let's take it kind of east to west. I think as you've seen, rent growth was very, very strong in Southern California, other West Coast markets, New Jersey, South Florida. Those are the markets where the change in dynamic has happened first. And the leasing progress that we've made in our portfolio, you've seen largely that was stronger in the East.

當然。讓我們從東到西。我認為正如您所看到的，南加州、其他西海岸市場、新澤西州、南佛羅裡達州的租金增長非常非常強勁。這些是最早發生動態變化的市場。您已經看到，我們在投資組合中取得的租賃進展在很大程度上在東方更為強勁。

That whole dynamic is going to shift over time as the alternatives that are available in the marketplace for potential tenants begin to get absorbed. And we're seeing that happen right now and we're seeing that additional traffic turn into more leasing activity.

隨著時間的推移，隨著市場上可供潛在租戶使用的替代方案開始被吸收，整個動態將會改變。我們現在看到這種情況正在發生，我們看到額外的流量轉化為更多的租賃活動。

Peter, do you want to comment?

彼得，你想發表評論嗎？

The only other thing I'd say is, as we think about rental rate growth, we continue to see traction in Pennsylvania, Nashville, and Houston today, generally speaking.

我唯一要說的是，當我們考慮租金成長時，總體而言，我們今天繼續看到賓州、納許維爾和休士頓的吸引力。

Jojo, do you want to comment on the West?

Jojo，你想評論西方嗎？

Yeah. And in terms of cycling through, taking time -- taking more time to inflect, IE in general has to cycle through and digest the supply it has, but there's been increased activity in terms of offers and proposals.

是的。就循環而言，需要時間——需要更多的時間來適應，IE 一般來說必須循環並消化它所擁有的供應，但在報價和提案方面的活動有所增加。

Very helpful. Thank you.

非常有幫助。謝謝。

Craig Mailman, Citi.

克雷格‧梅爾曼，花旗銀行。

Morning. Scott, on the boohoo lease, so you guys -- I guess they're on cash basis accounting now. Is that correct? And how should we think about the impact of that if they continue to pay rent over the next couple quarters? Or are you guys planning on taking back the security deposit and trying to go direct with the subtenant? What's the game plan here to attack this to either get it re-leased or continue cash flow in the asset?

早晨。史考特，在租約中，所以你們——我想他們現在採用的是收付實現制會計。這是正確的嗎？如果他們在接下來的幾個季度繼續支付租金，我們應該如何考慮其影響？或者你們打算收回保證金並嘗試直接與分租客聯繫？解決這個問題以重新出租或繼續資產現金流的遊戲計劃是什麼？

Right. I'll take care of the accounting piece of it, and I'll let Peter Schultz take care of the question about boohoo. So Craig, you're right, we're on cash basis. And again, as we mentioned in the script, they're current on their rent right now. If they continue to be current, obviously, we'll reflect that NOI in our FFO.

正確的。我會處理會計部分，我會讓 Peter Schultz 處理有關 boohoo 的問題。所以克雷格，你是對的，我們以現金為基礎。再次，正如我們在劇本中提到的，他們現在正在支付租金。顯然，如果它們繼續保持最新狀態，我們將在 FFO 中反映該 NOI。

If they stop paying rent, we do have the security deposit in the form of a letter of credit, so we can use that for about up to a year. That covers about a year's worth rent. So that's something that would help us out in the case that they stop paying rent. And I'll turn it over to Peter to talk about the tenant in more detail.

如果他們停止支付租金，我們確實有信用證形式的保證金，所以我們可以使用它大約一年。這相當於一年的租金。因此，如果他們停止支付租金，這將有助於我們擺脫困境。我將把它交給彼得來更詳細地討論租戶。

Thanks, Scott. Good morning, Craig. So boohoo is in the process of winding down their operations at the building, which should be completed by the end of the year. They then plan to put the entire building on the market for sublet. They will be retrenching back to the UK to fulfill their orders.

謝謝，斯科特。早安，克雷格。因此，boohoo 正在逐步結束該大樓的運營，預計今年底完成。然後他們計劃將整棟大樓放在市場上進行轉租。他們將縮減開支返回英國以履行訂單。

Today, there are very few options for this quality of a building in Central Pennsylvania, so they feel pretty good about their prospects for subletting. They also have a current subtenant in a portion of the building, about 400,000 square feet or so, through their 3PL, DHL, who's managing that. So that's subsidizing, if you will, some of their rental payments, but they fully intend to honor their lease obligation and have some success with subletting the building. We'll keep you posted on that.

如今，賓州中部這種品質的建築可供選擇的機會很少，因此他們對轉租的前景非常看好。目前，他們還透過 3PL DHL 管理該建築的一部分（大約 40 萬平方英尺），目前有一個轉租人。因此，如果您願意的話，這可以補貼他們的部分租金，但他們完全打算履行其租賃義務，並在轉租建築物方面取得了一些成功。我們會及時通知您。

Okay. And so if they do pay rent in the fourth quarter, what could that be upside to the guidance, Scott?

好的。因此，如果他們確實在第四季度支付租金，這對指導會有什麼好處，那麼史考特？

We have them paying rent, Craig.

我們讓他們付房租，克雷格。

Oh, you have them paying rent in the [guidance], okay.

哦，你讓他們在[指南]中支付租金，好吧。

Absolutely. Because they're paying for one; two, we've got the letter of credit. That's their security deposit. So even if they stop paying rent, I can keep accruing rent because I've got that letter of credit out there. Keep in mind that's with a bank, it's not with the tenant.

絕對地。因為他們要花錢買一個；二、我們已經拿到信用證了。那是他們的保證金。因此，即使他們停止支付租金，我也可以繼續累積租金，因為我有信用證。請記住，這是銀行的事，不是租戶的事。

As a result, the accounting rules will let me recognize that security deposit on a go-forward basis if they stop paying. So that takes me to -- if they stop paying now, that takes me to probably the end of third quarter, early fourth quarter of next year.

因此，如果他們停止支付，會計規則將允許我在未來的基礎上確認保證金。因此，如果他們現在停止付款，那麼我可能會到明年第三季末、第四季初。

Perfect. And then just going back to Blaine's question on the occupancy side, so we're halfway through October here. You have 400,000 square feet of development leasing in the number. How does the activity on that 400,000 square feet look? And from a kind of average occupancy in the fourth quarter versus ending occupancy, where should we be thinking about that depending on when some of this stuff could hit? Is this just going to be more kind of first quarter '25 impact from an earnings perspective?

完美的。然後回到布萊恩關於入住率的問題，所以我們十月已經過半了。您擁有 400,000 平方英尺的開發租賃面積。那 40 萬平方英尺的活動情況如何？從第四季的平均入住率與期末入住率來看，我們應該在哪裡考慮這個問題，這取決於這些東​​西何時會出現？從獲利角度來看，這是否會是 25 年第一季的影響？

Well, I would say the development leasing, we have it baked into our guidance at the end of the fourth quarter. So that's how we have it factored in. As far as what is included in that 400,000, Craig, that's a macro assumption. There could be many different combinations of development leases with the properties that we have available. I would say the prospects we have for it is pretty decent at this point in time, but we have work to be done. There's only about two months left in the year.

嗯，我想說的是開發租賃，我們已將其納入第四季末的指導中。這就是我們將其考慮在內的方式。克雷格，就這 40 萬所包含的內容而言，這是一個宏觀假設。開發租賃與我們現有的房產可能有許多不同的組合。我想說，目前我們的前景相當不錯，但我們還有工作要做。一年只剩下兩個月左右了。

Great. Thank you.

偉大的。謝謝。

Vikram Malhotra, Mizuho.

維克拉姆·馬爾霍特拉，瑞穗。

Thanks so much for taking the questions. I guess just first of all, just on the tenants, do you mind just sort of walking us through how has sort of the watch list evolved. And specifically, there's one known move out, I guess, in the first -- I believe it's in the first quarter of next year in Federal-Mogul. Do you mind just sort of talking about prospects for re-leasing that space? Thanks.

非常感謝您提出問題。我想首先，關於租戶，您介意向我們介紹一下觀察名單是如何演變的嗎？具體來說，我猜有一個已知的搬遷是在第一個——我相信是在輝門明年第一季。您介意談論一下重新出租該空間的前景嗎？謝謝。

Yeah, sure. Vikram, good morning. It's Peter Schultz. Right, that's the 708,000-square-foot building. That lease expires at the end of March. Tenant’s already out of the building, so we've done our make-ready work to position the building for marketing. We have seen some interest in it already, and we're encouraged by the limited number of options for that size space in Central Pennsylvania today.

是的，當然。維克拉姆，早安。我是彼得‧舒爾茨。沒錯，就是那座708,000平方英尺的建築。該租約將於三月底到期。租戶已經搬出大樓，因此我們已經完成了為行銷定位大樓的準備。我們已經看到了一些人對此感興趣，並且今天賓夕法尼亞州中部這種規模的空間的選擇數量有限，這讓我們感到鼓舞。

And Vikram, what was your question again?

維克拉姆，你的問題又是什麼？

Just the watch list -- the tenant watch list, just given kind of sublet volumes and bankruptcies and certain segments just the economy softening. Just mind giving some color on the watch list.

只是觀察名單——租戶觀察名單，只是給了某種轉租量和破產，以及某些部分只是經濟疲軟。只需介意在觀察清單上添加一些顏色即可。

Sure. Other than boohoo, nothing material on the watch list at this point of time.

當然。除了噓聲之外，目前觀察名單上沒有任何材料。

Okay, great. And then just last one. You did some -- you did a few acquisitions. I'm just wondering from a capital deployment standpoint, you mentioned starts have come down. You did start a new development. Some of your peers who had, I guess, big development pipelines have walked it back. I'm just wondering from a development and acquisition standpoint, what are you thinking as we head into '25?

好的，太好了。然後就是最後一張。你做了一些——你做了一些收購。我只是想從資本部署的角度來看，你提到的開工率已經下降。你確實開始了新的發展。我想，你的一些擁有大量開發管道的同行已經收回了它。我只是想知道，從開發和收購的角度來看，當我們進入 25 世紀時，您在想什麼？

So with respect to development, we continue to keep a close eye on the submarkets where we have development opportunities. Obviously, there are a lot of factors involved that impact the fundamentals of those submarkets, whether it's the wars around the world, what's happening in the economy, the election.

所以在發展方面，我們繼續密切關注有發展機會的細分市場。顯然，影響這些子市場基本面的因素很多，無論是世界各地的戰爭、經濟情勢或選舉。

We have been hearing from some big tenants that that's causing them to put their decision making off to the end of the year. When we look at the fundamentals around the country, the markets that we think are going to be most encouraging for new starts next year will be in Pennsylvania, Texas, South Florida, again, and, of course, Nashville, which, again, is one of the stronger markets in the country.

我們從一些大租戶那裡聽說，這導致他們將決策推遲到年底。當我們審視全國各地的基本面時，我們認為明年最令人鼓舞的新開工市場將再次出現在賓夕法尼亞州、德克薩斯州、南佛羅裡達州，當然還有納什維爾，該州同樣是該國最強勁的市場之一。

Thank you.

謝謝。

Caitlin Burrows, Goldman Sachs.

凱特琳·布羅斯，高盛。

Hi. Good morning, everyone. I was wondering if you could talk a little bit more about new leasing, whether development or other vacancy. I guess, what do you think it will take for new leasing to pick up, and what's your take on utilization and how that's impacting the market today?

你好。大家早安。我想知道您是否可以多談談新的租賃，無論是開發還是其他空缺。我想，您認為新租賃需要什麼才能回升？

Peter, do you want to take that?

彼得，你想接受這個嗎？

Sure. Caitlin, good morning. It's Peter Schultz. A couple of comments.

當然。凱特琳，早安。我是彼得‧舒爾茨。一些評論。

In terms of space utilization, in our discussions and inspections with our tenants, generally pretty high. Sublet space, other than the one we just talked about with boohoo, not that material. In terms of the cadence and pace of decisions and discussions, some tenants are operating with more urgency, but most, as Peter just commented on, are not for a variety of reasons. So there's demand and there's activity. And I would say that the level of prospects in the market today are probably better than it has been for most of the year, but the pace of that decision making continues to be lumpy and somewhat deliberate.

就空間利用率而言，我們與租戶討論和考察時，普遍都很高。轉租空間，除了我們剛才和boohoo談到的那個，不是那種材料。從決策和討論的節奏和節奏來看，一些租戶的運作更加緊迫，但正如彼得剛才所說，大多數租戶出於各種原因並不緊迫。所以有需求就有活動。我想說，今天市場的前景水平可能比今年大部分時間都要好，但決策的步伐仍然不穩定，而且有些刻意。

There's a lot of uncertainty out there with respect to the macro economy, geopolitical issues. The weather is now on people's minds, so we need to work through these things. But we believe we see there's pent-up demand. There are definitely larger tenants who have investment dollars for growth that they want to get going on, and they're just waiting for the fog to clear a little bit on some of this uncertainty.

宏觀經濟、地緣政治問題存在著許多不確定性。天氣現在是人們關注的焦點，所以我們需要解決這些問題。但我們相信我們看到了被壓抑的需求。肯定有一些較大的租戶擁有投資資金來實現他們希望繼續發展的成長，他們只是在等待這種不確定性的迷霧稍微消散。

Got it. Okay. And then just maybe on the acquisitions versus disposition strategy at this point, I could maybe imagine that you're looking to sell lower growth properties and buy higher growth ones. But I guess just like how possible is that? And you mentioned the 100% lease rate for the Houston acquisitions, so just wondering kind of what's the opportunity there.

知道了。好的。然後，也許就此時的收購與處置策略而言，我可能會想像您正在尋求出售低成長的房產併購買高成長的房產。但我想這怎麼可能呢？您提到休士頓收購的 100% 租賃率，所以想知道那裡有什麼機會。

Yeah. So for us, we're kind of choosy about what we're going to buy. It has to be in the right place and have the right functionality and a lot of other factors. And so, typically, we do best when there are complications around deals, call them hair on deals.

是的。所以對我們來說，我們對要買的東西有點挑剔。它必須位於正確的位置並具有正確的功能和許多其他因素。因此，通常情況下，當交易出現複雜情況時，我們會做得最好，稱之為「交易中的毛病」。

And so we don't participate in the broadly attended auctions by and large, and we're much better at acquiring assets, as I said, where there's work to be done. So that's the strategy there. And again, we're focusing on the submarkets that we think are going to show the most growth over the coming near to medium term.

因此，總的來說，我們不參與廣泛參與的拍賣，而且正如我所說，我們更擅長收購資產，因為那裡還有工作要做。這就是那裡的策略。再次，我們將重點放在我們認為在未來中期內將顯示最大成長的子市場。

And if I could just -- on the Houston one, it doesn't sound very hairy, given it's well leased. Was that one maybe was just off market and it worked out, or there's some other complication that is not so obvious?

如果我可以的話——在休士頓那家，聽起來並不是很毛茸茸的，因為它租得很好。是不是這個產品剛上市就成功了，還是還有其他一些不那麼明顯的併發症？

You nailed it right on the head, Caitlin. It basically was off market. In addition to that, the seller wanted certainty, and we have a good portfolio in the southeast submarket and they wanted to make sure that we -- they worked with a buyer that knew the submarket, could close pretty quickly, and we won the limited marketing. We were -- there were very few competitors, and we're very pleased with that acquisition, great product, new product, and a 5.9% going-in cash yield.

你把它釘在了頭上，凱特琳。它基本上是市場外的。In addition to that, the seller wanted certainty, and we have a good portfolio in the southeast submarket and they wanted to make sure that we -- they worked with a buyer that knew the submarket, could close pretty quickly, and we won the limited行銷.我們當時的競爭對手很少，我們對這次收購、出色的產品、新產品以及 5.9% 的現金收益率感到非常滿意。

So Caitlin, I think you also asked about dispositions. You're right. As we have done for now quite some time, we're focusing on those assets that have a lower growth trajectory going forward, so that we can redeploy that capital into a higher growth opportunity. We'll keep doing that. But I think at a macro level, you will see the volume of those sales going forward be much lower than it's been in the past.

凱特琳，我想你也問過性格問題。你說得對。正如我們長期以來所做的那樣，我們將重點放在那些未來成長軌跡較低的資產上，以便我們可以將資本重新部署到更高的成長機會。我們會繼續這樣做。但我認為從宏觀層面來看，你會看到未來的銷售量將比過去低得多。

Thank you.

謝謝。

Rich Anderson, Wedbush.

里奇安德森，韋德布希。

Hey. Thanks, and good morning. First question is on the election, and you mentioned some tenants are holding off until they see what the outcome. What's the swing factor there? Is there like -- I'm not doing anything if Harris wins, but I'm all in if -- I don't understand beyond tariff risk, what it is that will change on November 6 with the election in the minds of your tenants?

嘿。謝謝，早安。第一個問題是關於選舉的，你提到一些租戶正在推遲，直到他們看到結果。那裡的擺動因素是什麼？如果哈里斯獲勝，我不會做任何事情，但我會全力以赴，如果——除了關稅風險之外，我不明白隨著你們心中的選舉，11 月 6 日將會發生什麼變化？

Yeah. So we don't get into the micro on the nitty-gritty details. I think, generally speaking, it's about growth and the stability in the economy. And I can't attribute that to either candidate in terms of how that's going to come out, but it's the new growth investment, not the renewals.

是的。因此，我們不會深入探討具體細節。我認為，總的來說，這是關於經濟的成長和穩定。就結果而言，我不能將其歸因於任何候選人，但這是新的成長投資，而不是續約。

The renewal activity is extremely strong, as you've seen in our cash rent increases, and very, very strong. So it's really the new growth investment. People want to see what the landscape's going to look like either way, regardless of who wins, and what that's going to mean for anything from economic activities and social unrest to increased regulation or decreased regulation. So there are some pretty big factors involved in the outcomes, and that's kind of it at a macro level.

正如您在我們的現金租金上漲中看到的那樣，續訂活動非常強勁，而且非常非常強勁。所以這確實是新的成長投資。人們希望了解無論誰獲勝，情況都會是什麼樣子，以及這對從經濟活動和社會動盪到加強監管或減少監管等方面意味著什麼。因此，結果涉及一些相當大的因素，這就是宏觀層面的因素。

Is there any like, red state, blue state, Trump wins, red states are going to do better? Or is that too oversimplifying it in your mind?

有沒有類似的，紅州，藍州，川普獲勝，紅州會做得更好？還是你認為這過於簡化了？

I don't have a view on that.

我對此沒有看法。

Not to get political on you guys, sorry. The next question is 8% same-store NOI growth for 2024 is your guidance. Do you have a read on what your earn-in is for 2025, based on particularly what you've done in the second half of 2024?

抱歉，不是為了對你們產生政治影響。下一個問題是 2024 年同店 NOI 成長 8% 是您的指導。您是否了解您在 2025 年的收入，特別是根據您在 2024 年下半年所做的事情？

Are you asking for what we think an estimate of what it's going to be in 2025, Rich?

Rich，您是否想了解我們對 2025 年情況的估計？

Yes, I want guidance for 2025. I'm talking about what is baked in -- so if maybe there's 3% or 4% same-store already baked into next year because of what you did in 2024.

是的，我想要 2025 年的指導。我說的是已經融入的東西——所以，如果因為你在 2024 年所做的事情，明年可能有 3% 或 4% 的同店已經融入了。

Well, I think that the key driver is the same store, a couple of different items. Occupancy is one on the core. I'm not going to get into that, but others are rental rate bumps. That's been pretty stable. And then it's the cash rental rate increase on new and renewal leasing, what we're able to achieve next year, because that's been a real driver of cash same-store growth for the industrial peers.

嗯，我認為關鍵的驅動因素是同一家商店，幾種不同的商品。入住率是核心之一。我不打算討論這個問題，但其他的是租金上漲。那已經相當穩定了。然後是新租賃和續租租賃的現金租金上漲，這是我們明年能夠實現的目標，因為這是工業同行現金同店成長的真正驅動力。

We gave you a look into what we think early what 2025 is. We signed 37% of the expirations in 2025 at a 33% increase in cash rental rates, and that includes that fixed rate renewal option for the 1.3 million square footer in Central Pennsylvania. So I think the number is going to be a pretty good number. We've got to see how rental rates flesh out when we do our final guidance, but we think it's going to be a good year.

我們提前向您介紹了我們對 2025 年的看法。我們在 2025 年簽署了 37% 的到期合同，現金租金上漲 33%，其中包括賓夕法尼亞州中部 130 萬平方英尺的固定利率續租選項。所以我認為這個數字將會是一個相當不錯的數字。當我們制定最終指導時，我們必須看看租金率如何充實，但我們認為這將是美好的一年。

Okay. Last for me, I don't know if you mentioned where you're seeing market rent growth in your areas of the country, how that's moving right now. Maybe you can answer that, but also, how quickly can it change? Let's say, God willing, we get some recovery in the geopolitical landscape and everyone's kind of happy with the political environment, macro stabilizes, all those good things happen. How quickly can you go from 0% to 5% market rent growth in your business and perhaps what you've seen in history? I'm just wondering the speed by which we start to see real health come back into the marketplace.

好的。最後，我不知道您是否提到您所在地區的市場租金成長情況以及目前的進展。也許你可以回答這個問題，但它的變化速度有多快？假設，如果上帝願意，我們的地緣政治格局會有所復甦，每個人都對政治環境感到滿意，宏觀穩定，所有這些好事都會發生。您的企業的市場租金成長速度能多快從 0% 上升到 5%？我只是想知道我們開始看到真正的健康產品重返市場的速度有多快。

Okay. We can’t put a timeframe on that, but some math helps frame it, okay? So net absorption is not bad. It needs to improve some. Completions, so the existing pipeline is way down. Completions last quarter went from 72 million in the second quarter to 45 million this year, and this is in our markets. The construction pipe went from 170 million to 135 million feet, and 28% of that 135 million is pre-leased.

好的。我們無法為此設定一個時間表，但一些數學可以幫助確定它，好嗎？所以淨吸收還不錯。它需要改進一些。已竣工，因此現有管道已大幅下降。上季的完工量從第二季的 7,200 萬套增加到今年的 4,500 萬套，而且這是在我們的市場上。施工管道從 1.7 億英尺增加到 1.35 億英尺，其中 1.35 億英尺的 28% 是預租的。

So when you look at the fall-off and what we'll call new alternatives for prospective tenants, if we get some wind at our backs on the net absorption front to lead the demand side, things can change. We don't think it's going to happen with any great speed. You're probably looking at the second half of next year. But aside from that, it's difficult to handicap.

因此，當你看到下降以及我們所說的潛在租戶的新替代方案時，如果我們在淨吸收方面獲得一些支持以引領需求方，情況可能會改變。我們認為這不會以很快的速度發生。您可能會關註明年下半年。但除此之外，很難阻礙。

And did you have a number for market rent growth that you're seeing today?

您有今天看到的市場租金成長數字嗎？

Yeah. So overall rents are flattish to up a little bit. If you take SoCal out of that number, they're probably up 2% or 3%.

是的。因此，整體租金持平或略有上漲。如果你把南加州從這個數字中剔除，他們可能會上漲 2% 或 3%。

Okay. Great. Thanks, everyone.

好的。偉大的。謝謝大家。

Rob Stevenson, Janney.

羅布史蒂文森，珍妮。

Good morning, guys. Can you talk about the transaction market given that you've been both buyers and sellers recently, given the first rate cut and the speculation leading up to that, and sort of where cap rates are today versus 6 or 12 months ago and how strong demand is and transaction volumes are that you're seeing out there ahead of the fourth quarter?

早安，夥計們。您能談談交易市場嗎？強勁您在第四季之前看到的交易量是多少？

At a high level, there is definitely significant capital chasing opportunities in the space. We're seeing some pretty significant prices paid. We would say some people are making some pretty big bets on the prior question about speed of recovery. We see a lot of bets on that being quicker rather than longer.

從高層來看，該領域肯定存在大量資本追逐機會。我們看到付出了一些相當可觀的代價。我們想說，有些人在之前關於恢復速度的問題上下了相當大的賭注。我們看到很多人押注這會更快而不是更長。

Peter and Jojo, do you want to comment on any specifics in your markets?

Peter 和 Jojo，您想對您們市場的具體情況發表評論嗎？

Rob, I would just say, as we monitor some of the widely marketed transactions earlier in the year, there were maybe six to eight bidders. And now, you're seeing over 20 bidders on some of these packages. So to Peter's point, a lot of interest in the space.

羅布，我只想說，當我們監控今年早些時候一些廣泛銷售的交易時，可能有六到八個競標者。現在，您會看到其中一些套餐有超過 20 個競標者。因此，就彼得而言，人們對這個領域很感興趣。

In terms of -- our house view is that second half will have more transactions than the first half. In addition to what both Peters said is that when talking to competing buyers, they feel like the decline in volatility the 10-year helped, the lowering of short-term interest rates helped their carry, they're more a bit more definitive now. What kind of fixed rate financing they can get, all of those leads to more comfort in pricing. Overall, cap rates came in about 25 basis points over the last three months, I would say, and the expectation for unlevered IRRs also came in. So definitely, overall, the market is a bit more competitive.

就我們的觀點而言，下半年的交易量將比上半年更多。除了彼得斯所說的之外，在與競爭買家交談時，他們覺得10年期波動性的下降幫助了他們，短期利率的降低幫助了他們的套利，他們現在更加確定了。他們可以獲得什麼樣的固定利率融資，所有這些都會讓定價更舒適。總體而言，過去三個月資本化率上升了約 25 個基點，對無槓桿 IRR 的預期也隨之上升。因此，整體而言，市場的競爭無疑更加激烈。

Okay, that's helpful. And how aggressively are you guys looking to add to your land pipeline today? And have you seen land pricing come down in any material manner across your core markets?

好的，這很有幫助。你們今天想多積極增加土地管道？您是否看到核心市場的土地價格出現實質下降？

Right now, I mean if you're looking at -- we have a very good pipeline to continue to grow our platform and our company. Of course, we'll watch, like Peter Baccile said, the submarkets and want to make sure that the supply-demand dynamics are favorable.

現在，我的意思是，如果你正在看的話——我們有一個非常好的管道來繼續發展我們的平台和我們的公司。當然，正如 Peter Baccile 所說，我們會專注於子市場，並希望確保供需動態有利。

We continue to look for land sites. One thing that I want to mention is the land sites have -- pricing is not really significant declined if you compare it to the decline of rents. So there is still quite a bit of bid-ask between buyers and sellers. In the same token, there are more buyers now being a little bit more aggressive, just a little bit more aggressive, in buying land sites with lower yield expectations.

我們繼續尋找土地。我想提的一件事是，如果將其與租金的下降進行比較，則土地價格並沒有真正顯著下降。所以買家和賣家之間還是有相當多的買賣。同樣，現在有更多的買家更積極地購買收益率預期較低的土地。

Yeah. Landowners, it seems, think the market's going to go back to 2022 pricing, which we definitely don't. So that's why the bid ask that Jojo references is pretty wide. So we are out there looking for land, but the transactions volume on that front are kind of slow.

是的。土地所有者似乎認為市場將回到 2022 年的定價，但我們絕對不這麼認為。這就是為什麼競標要求 Jojo 的參考範圍相當廣泛。因此，我們正在尋找土地，但這方面的交易量有點慢。

Okay, that's helpful. Thanks, guys. Appreciate the time.

好的，這很有幫助。謝謝，夥計們。珍惜時間。

Nick Thillman, Baird.

尼克·希爾曼，貝爾德。

Hey. Good morning, guys. Peter, you kind of mentioned just more recently the weather becoming more of a factor in tenant decision making. Is that hurricane-related? Are we talking like South Florida and like how recent is that or like maybe how broadly is that comment?

嘿。早安，夥計們。彼得，你最近提到天氣越來越成為租戶決策的因素。這和颶風有關嗎？我們是像南佛羅裡達州那樣談論這個評論是最近發生的還是像這個評論的範圍有多廣？

It's more of a broad comment about the frequency of these highly disruptive weather patterns. They cause great economic damage. It probably has a big impact on consumption, so you can't ignore it. Now, they are geographically confined, I guess, you would say. But they're still big and they're now coming back to back. It's just something else that's on the mind of people who are looking at all the uncertainties that they have to wade through before they make investment dollars in new growth.

這更多的是對這些高度破壞性天氣模式發生頻率的廣泛評論。它們造成巨大的經濟損失。它可能對消費有很大的影響，所以你不能忽視它。現在，你可能會說，我猜它們在地理上受到限制。但他們仍然很大，而且現在正在背對背。對於那些在投資新成長之前必須克服所有不確定性的人來說，這只是他們心中的另一件事。

That's helpful. And then on First Logistics Center, it seemed like the second building that's still in lease up, it seemed as though you guys were getting pretty bullish on the prospects there. With boohoo kind of listing that other space as assembly space, is that another competitive building you think or is it different space needs in that specific submarket?

這很有幫助。然後在第一物流中心，它似乎是仍在租賃的第二棟建築，看來你們對那裡的前景非常看好。boohoo 有點將其他空間列為組裝空間，您認為這是另一個有競爭力的建築，還是該特定子市場的不同空間需求？

Nick, it's Peter Schultz. So not competitive. boohoo, as I mentioned, is going to be subletting the building in its entirety. So irrespective of the shorter-term sublease that they have there now, that will come to conclusion and they'll be marketing the entire building.

尼克，我是彼得‧舒爾茨。所以沒有競爭力。正如我所提到的，boohoo 將把整棟大樓轉租出去。因此，無論他們現在擁有的短期轉租如何，最終都會得出結論，他們將行銷整棟大樓。

The balance of the second building is 350,000 feet. They're not competitive. We've had some activity there, a little disappointed at the pace of decision-making with some of the prospects, but they're really two separate spaces.

第二座建築的其餘高度為 350,000 英尺。他們沒有競爭力。我們在那裡進行了一些活動，對一些潛在客戶的決策速度有點失望，但它們實際上是兩個獨立的空間。

That's it for me. Thanks.

對我來說就是這樣。謝謝。

Vince Tibone, Green Street.

文斯·蒂伯恩，格林街。

Hi. Good morning. Could you share your views on the latest California legislation impacting industrial development, AB 98? Particularly, does this bill impact your existing land bank at all in California and your ability to build on that land? And then also, what impact do you think this legislation could have on industry-wide supply in California over the next few years?

你好。早安.您能否分享一下您對影響工業發展的加州最新立法 AB 98 的看法？特別是，這項法案是否會影響您在加州現有的土地儲備以及您在該土地上進行建設的能力？另外，您認為這項立法可能會對加州未來幾年的全行業供應產生什麼影響？

I mean, generally speaking, and then I'll hand it over to Jojo for the details on our portfolio, this is going to be a tailwind. It'll be a tailwind for our business. It'll be -- it'll increase value for existing assets. And over time, it's probably going to put upward pressure on rents. But Jojo, you can talk more about our holdings and how we're positioned with this. We're in pretty good shape.

我的意思是，一般來說，然後我會將其交給 Jojo 了解我們投資組合的詳細信息，這將是一個順風車。這將成為我們業務的順風車。它將增加現有資產的價值。隨著時間的推移，這可能會給租金帶來上漲壓力。但是喬喬，你可以更多地談論我們的持股以及我們對此的定位。我們的狀態非常好。

Sure. Vince, thanks for your question. For those who are not familiar, the AB 98 is a new California State law, and it aims to limit industrial development depending upon how far you are with sensitive receptors, which is really the schools, resi, and hospitals, for example. And what that means is that the state law requires building upgrades and increased setbacks and buffer zones.

當然。文斯，謝謝你的提問。對於那些不熟悉的人來說，AB 98 是一項新的加州法律，其目的是根據您與敏感受體（例如學校、養老院和醫院）的距離來限制工業發展。這意味著州法律要求建築物升級並增加挫折和緩衝區。

All of our land under entitlement is exempt from AB 98 because this law is basically affecting development projects that have not started their permitting or entitlement process after 10/1/24. So actually, September 30 of this year, anything that you haven't started entitlement, you are subject to AB 98. So that's one thing I want to make clear.

我們所有享有權利的土地均不受 AB 98 的約束，因為該法律基本上影響的是 24 年 10 月 1 日之後尚未開始許可或權利流程的開發項目。所以實際上，從今年 9 月 30 日起，任何您尚未開始享有權利的事情，都將受到 AB 98 的約束。這是我想澄清的一件事。

Just to add to what Peter had said is that, again, there are -- our view is that there are going to be numerous sites that would be very difficult or nearly impossible to develop due to the constraints put by AB 98. And basically, this has the effect of constraining developable land across the state. And we all believe that anything that constrains the supply of developable land will increase the value of our existing sites and existing buildings. And of course, as we all know, that anything that decreases potential supply should be good for the fundamentals of the market, i.e., rent growth.

補充 Peter 所說的，我們的觀點是，由於 AB 98 的限制，將會有許多站點很難或幾乎不可能開發。基本上，這會限制全州的可開發土地。我們都相信，任何限制可開發土地供應的因素都會增加我們現有場地和現有建築物的價值。當然，眾所周知，任何減少潛在供應的因素都應該有利於市場的基本面，即租金成長。

So I hope that answers your question, Vince.

所以我希望這能回答你的問題，文斯。

No, that's really helpful color. And we're just trying to think about how much, versus the historical pace of development in Inland Empire, specifically, this new legislation can impact that. This is all really helpful color. Thank you.

不，那是非常有用的顏色。我們只是想考慮一下，相對於內陸帝國的歷史發展速度，這項新立法具體可以產生多大的影響。這都是非常有用的顏色。謝謝。

(Operator Instructions) Michael Mueller, JPMorgan.

（操作員指令）Michael Mueller，摩根大通。

Yeah, hi. I think you mentioned that go-forward asset sales could be considerably lower on a go-forward basis. And it seems like in the past, you've normally pointed to 75 to 125 or 150 of annual disposition targets. So I guess, how should we read into what that implies for development starts going forward, even relative to this year? Is it implying a much lower go-forward pace? And just how sensitive is dispositions to starts?

是的，嗨。我想你提到，未來的資產銷售可能會大大降低。過去，您通常會指定 75 至 125 或 150 個年度處置目標。所以我想，我們該如何解讀這對未來發展意味著什麼，甚至相對於今年？這是否意味著前進速度要低得多？性格對開始有多敏感？

Yeah, they're disconnected. They're not connected, let me say it that way. The sales program over the last dozen years, as you've seen and as you know, for us was to reallocate capital away from lower growth assets into higher growth opportunities. We're now to a point where that program is essentially over. And so that really has nothing to do with developments.

是啊，他們斷線了。他們沒有聯繫，讓我這樣說。正如您所看到和知道的那樣，過去十多年的銷售計劃對我們來說是將資本從低成長資產重新分配到高成長機會。現在，該計劃已基本結束。所以這確實與事態發展無關。

Now, yes, obviously those sales proceeds over the last decade or so have helped fund new development, but we'll just fund those developments in a different way going forward. We'll fund them through some sales, but much lower numbers, as well as retained cash flow and the right proportions of debt and equity. So it's not really going to impact starts. They're not connected.

現在，是的，顯然過去十年左右的銷售收入幫助資助了新的開發項目，但我們只會以不同的方式為這些開發項目提供資金。我們將透過一些銷售（但數量要少得多）以及保留的現金流以及適當比例的債務和股權來為他們提供資金。所以這不會真正影響開始。他們沒有聯繫。

Got it. Okay. Thank you.

知道了。好的。謝謝。

Nicholas Yulico, Scotiabank.

尼古拉斯·尤利科，豐業銀行。

Thanks. Hi. I just wanted to go back to boohoo and that accelerated tenant improvement reimbursement. Was that income -- was that already in the guidance or was that unexpected this quarter?

謝謝。你好。我只是想回到那個加速租戶改善報銷的階段。該收入是已經在指導中還是本季出乎意料的？

That was unexpected because it was the accelerated recognition of that tenant improvement reimbursement liability. So what the accounting rules tell you to do is you have to amortize that over the life of the lease.

這是出乎意料的，因為這是對租戶改善補償責任的加速認可。因此，會計規則告訴您必須在租賃期間內攤銷這筆費用。

Well, at the end of the third quarter, we accelerated the unamortized balance, which I think was about $4.4 million or $4.5 million. So that was a benefit, but that was netted against the write-off of the straight-line rent receivable of $5.5 million. So that's how you get the $0.01 per share. So again, it's all in conjunction with boohoo and it was not anticipated when we issued guidance in the second quarter.

嗯，在第三季末，我們加速了未攤銷餘額，我認為大約是 440 萬美元或 450 萬美元。因此，這是一項收益，但已沖銷 550 萬美元的直線應收租金。這就是您獲得每股 0.01 美元的方式。再說一次，這一切都與 boohoo 相關，當我們在第二季發布指導意見時，這是沒有預料到的。

Okay. And then the write-off, which is the offset, that also wasn't in prior guidance?

好的。然後是沖銷，即抵消，這也沒有出現在先前的指導中？

It was not in prior guidance, correct. Both pieces were not.

這不是之前的指導，正確的。兩件作品都不是。

Okay, great. Thanks. Appreciate it.

好的，太好了。謝謝。欣賞它。

Caitlin Burrows, Goldman Sachs.

凱特琳·布羅斯，高盛。

Hi. Sorry, I just had one quick follow-up that I figured was easier to ask this way. Before, when you guys were talking about the rent growth, I think you mentioned market rent growth, that it was about flattish, maybe up a little, and then excluding Southern California, might have been up 2% to 3% just for the time period. Was that year over year in the third quarter or something else?

你好。抱歉，我剛剛進行了一次快速跟進，我認為透過這種方式提問會更容易。之前，當你們談論租金成長時，我想你們提到了市場租金成長，市場租金成長基本上持平，可能會上漲一點，然後排除南加州，暫時可能上漲 2% 到 3%時期。是第三季的年比情況還是其他什麼情況？

That's year over year.

那是年復一年。

In 3Q. Okay, thanks.

第三季。好的，謝謝。

Brendan Lynch, Barclays.

布倫丹·林奇，巴克萊銀行。

Great. Thanks for taking my question. Just to follow up on AB 98, my sense is that there's a lot of gray area in the bill, and maybe there's some additional legislation that might be coming. Can you talk about whether you think the dynamics of what has been established with AB 98 is actually finalized versus might be adjusted in the future?

偉大的。感謝您提出我的問題。只是為了跟進 AB 98，我的感覺是該法案中有很多灰色區域，也許還會有一些額外的立法。您能否談談您認為 AB 98 所建立的動態是否實際上已最終確定，以及未來是否可能進行調整？

Sure. Very good question. When you read through AB 98, there certainly could benefit for more clarification. At this point, the investment criteria, setback criteria, and specific building upgrades, depending upon the size and how far each building would be on the receptor. And there is enough detail wherein you can kind of ballpark what might happen in a building and what land site is available.

當然。非常好的問題。當您通讀 AB 98 時，獲得更多澄清肯定會有所幫助。此時，投資標準、挫折標準和具體的建築物升級，取決於每棟建築物的大小以及在接收器上的距離。並且有足夠的細節，您可以大致了解建築物中可能發生的情況以及可用的土地。

But certainly, there could be additional detail, because even the building upgrades and how, for example, the building is laid out could be more specific. But it's so hard to forecast what kind of changes might end up with that. But right now, it is a state law and it has some detail in it.

但當然，可能還有更多細節，因為即使是建築物升級以及建築物的佈局等也可能更加具體。但很難預測最終會發生什麼樣的變化。但現在，這是一項州法律，其中有一些細節。

It's also fair to say the municipalities don't like this, so it'll be litigated as well. So we'll see. There's definitely going to be some movement here.

公平地說，市政當局不喜歡這樣，所以也會提起訴訟。所以我們拭目以待。這裡肯定會有一些動靜。

Great. That's helpful. Maybe just one other one on this topic. Did you submit kind of a flurry of entitlement requests right before the deadline to avoid some of the consequences of the bill itself?

偉大的。這很有幫助。也許只是關於這個主題的另一篇文章。您是否在截止日期前提交了一系列權利請求，以避免法案本身的一些後果？

Not at all. All our sites were clearly within -- some are years into, and we also have some entitlement sites already. And so yeah, none was done as a quick reaction to this AB 98.

一點也不。我們所有的網站顯然都在其中——有些已經好幾年了，而且我們也已經有了一些授權網站。所以，是的，沒有人對這款 AB 98 做出快速反應。

Great. Thanks for the color.

偉大的。謝謝你的顏色。

This concludes our question-and-answer session. I would like to turn the conference back over to Peter Baccile for any closing remarks.

我們的問答環節到此結束。我想將會議轉回由 Peter Baccile 發表閉幕詞。

Thank you, operator, and thanks to everyone for participating on our call today. If you have any follow-ups from our call, please reach out to Art, Scott, or me. Have a great week.

謝謝接線員，也謝謝大家今天參與我們的電話會議。如果您對我們的通話有任何後續跟進，請聯絡 Art、Scott 或我。祝你有個愉快的一周。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。