FRP Holdings Inc (FRPH) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to today's FRP Holdings earnings conference call. (Operator Instructions) Please note, this call is being recorded (Operator Instructions)

大家好，歡迎參加今天的 FRP Holdings 財報電話會議。 （操作員說明）請注意，此通話正在錄音（操作員說明）

It is now my pleasure to turn today's program over to John Baker. Sir, please go ahead.

現在我很高興將今天的節目交給約翰·貝克。先生，請繼續。

Good morning. I'm John Baker, III, Chief Financial Officer and Treasurer of FRP Holdings. And with me today are David deVilliers, Jr., our President; John Baker, II, our Chairman and CEO; John Milton, our Executive Vice President and General Counsel; John Klopfenstein, our Chief Accounting Officer; and David deVilliers, III, our Executive Vice President.

早上好。我是 FRP Holdings 的首席財務官兼財務主管 John Baker, III。今天和我在一起的還有我們的總統小戴維·德維利爾斯 (David deVilliers, Jr.)；約翰·貝克 (John Baker) II，我們的董事長兼首席執行官；約翰·米爾頓，我們的執行副總裁兼總法律顧問； John Klopfenstein，我們的首席會計官；以及我們的執行副總裁 David deVilliers, III。

As a reminder, any statements on this call which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These risks and uncertainties are listed in our SEC filings. We have no obligation to revise or update any forward-looking statements except as imposed by law as a result of future events or new information.

提醒一下，本次電話會議中與未來相關的任何陳述本質上都受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果和事件與此類前瞻性陳述中所示的結果和事件存在重大差異。這些風險和不確定性已在我們向 SEC 提交的文件中列出。我們沒有義務修改或更新任何前瞻性陳述，除非法律因未來事件或新信息而強制要求。

To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures with the meaning of Regulation G promulgated by the Securities and Exchange Commission. The non-GAAP financial measure referenced in this call is net operating income or NOI. FRP uses this non-GAAP financial measure to analyze its operations and monitor, assess and identify meaningful trends in its operating and financial performance. This measure is not and should not be viewed as a substitute for GAAP financial measures. To reconcile GAAP to net income, please refer to the segment titled Non-GAAP Financial Measures on Page 12 and 13 of our most recent earnings release.

為了補充根據 GAAP 提出的財務業績，FRP 提出了某些具有美國證券交易委員會頒布的 G 條例含義的非 GAAP 財務指標。本次電話會議中引用的非公認會計準則財務指標是淨營業收入或 NOI。 FRP 使用這種非 GAAP 財務指標來分析其運營，並監控、評估和識別其運營和財務業績的有意義的趨勢。該措施不是也不應被視為 GAAP 財務措施的替代品。為了使 GAAP 與淨利潤保持一致，請參閱我們最新財報第 12 頁和第 13 頁標題為“非 GAAP 財務指標”的部分。

Now for our financial highlights from the second quarter. Net income for the second quarter was $598,000 or $0.06 per share versus $657,000 or $0.07 per share in the same period last year. Second quarter of 2023 when compared to the previous year was impacted primarily by an increase of $2,281,000 in equity and loss of joint ventures from 2 projects in lease-up, an increase in management company expense of $235,000 due to new hires and recruiting costs as well as an increase in interest expense of $390,000, offset by an increase in interest income by $2,005,000.

現在我們來看看第二季度的財務亮點。第二季度淨利潤為 598,000 美元，即每股 0.06 美元，而去年同期為 657,000 美元，即每股 0.07 美元。與上一年相比，2023 年第二季度的主要影響因素是 2 個租賃項目的股權和合資企業損失增加了 2,281,000 美元，以及新員工和招聘成本導致管理公司費用增加了 235,000 美元利息支出增加390,000美元，被利息收入增加2,005,000 美元所抵消。

First quarter pro rata NOI for all segments was $7,610,000 versus $6,550,000 in the same period last year for an increase of 16.3%. Net income for the first 6 months of 2023 was $1,160,000 or $0.12 per share versus $1,329,000 or $0.14 per share in the same period last year. The first 6 months of 2023 compared to the same period in 2022 were impacted by an increase in equity and loss of joint ventures of $4.3 million as we lease up The Verge and .408 Jackson, an increase in management company indirect expense of $300,000, an interest in interest -- an increase in interest expense of $658,000, offset by an increase in interest income of $3,489,000. The first 6 months of 2022 were also positively impacted by a $733,000 gain from property sales, which we did not repeat in the first 6 months of 2023.

第一季度所有細分市場按比例的 NOI 為 7,610,000 美元，而去年同期為 6,550,000 美元，增長 16.3%。 2023 年前 6 個月的淨利潤為 1,160,000 美元，即每股 0.12 美元，而去年同期為 1,329,000 美元，即每股 0.14 美元。與 2022 年同期相比，2023 年前 6 個月受到股權增加和合資企業損失 430 萬美元的影響，因為我們租賃了 The Verge 和 0.408 Jackson，管理公司間接費用增加了 30 萬美元，利息利息-- -- 利息支出增加658 000美元，被利息收入增加3 489 000美元所抵消。 2022 年前 6 個月還受到房地產銷售收益 733,000 美元的積極影響，我們在 2023 年前 6 個月沒有重複這種情況。

Revenue, operating profit and NOI are all experiencing strong growth this quarter and for the year-to-date. Compared to the second quarter of 2022, we grew revenue by 11.1%, operating profit by 33.9% and pro rata NOI by 16.3%. For the first 6 months compared to last year, these metrics grew by 13.5%, 63.9% and 24.5%, respectively, and yet net income has been more or less flat. The situation is not new to the company but the product of development and lease-up when equity and loss on joint ventures are at their highest and have a negative impact financially on our net income. This was the situation during previous lease subs, and it is quite literally the cost of doing business. We count ourselves very fortunate that we have a shareholder base that understands the situation and is patient while we transition these products into stabilization and income production.

本季度和年初至今，收入、營業利潤和 NOI 均出現強勁增長。與 2022 年第二季度相比，我們的收入增長了 11.1%，營業利潤增長了 33.9%，NOI 按比例增長了 16.3%。與去年同期相比，前 6 個月這些指標分別增長了 13.5%、63.9% 和 24.5%，但淨利潤卻大致持平。這種情況對公司來說並不新鮮，而是當合資企業的股本和虧損達到最高水平並對我們的淨利潤產生財務負面影響時開發和租賃的產物。這就是之前租賃分包期間的情況，這實際上就是做生意的成本。我們非常幸運，我們的股東基礎了解情況，並且在我們將這些產品轉變為穩定和創收的過程中保持耐心。

I'll now turn the call over to David for his report. David?

我現在將把電話轉給大衛，讓他報告。大衛？

Thank you, John, and good morning to those on the call. As I have done for the last few quarters, I'd like to provide you with a perspective on the results of the company from an operational standpoint. We report our business segments in designated silos, which are important in analyzing the company. However, operationally, we have overlap and synergies that are difficult to follow using the business segments as reported.

謝謝你，約翰，各位來電的人早上好。正如我在過去幾個季度所做的那樣，我想從運營的角度向您提供對公司業績的看法。我們在指定的筒倉中報告我們的業務部門，這對於分析公司非常重要。然而，在運營上，我們存在重疊和協同效應，很難使用所報告的業務部門來跟踪。

So employing a day-to-day look at FRP, which we call our real estate operations, let me offer the following. Our real estate operations consist of a four-pronged approach that has been the core of our business programming since mid-2018 when we liquidated our legacy warehouse portfolio. One, in-house, which happens to be the same as our reported asset management business segment, includes our industrial, commercial and land development platform. These properties are developed, managed and owned 100% by FRP; two, mining and royalties; three, third-party joint ventures, which as the name implies, a project developed in conjunction with third parties, where FRP is the major owner but relies on seasoned and respected third-party operating partners to perform the lion's share of entitlements, construction and day-to-day operations; and four, lending ventures, which we are the principal capital source for residential land development activities.

因此，通過對 FRP（我們稱之為房地產業務）的日常觀察，讓我提供以下內容。我們的房地產業務由四管齊下的方法組成，自 2018 年中期我們清理遺留倉庫投資組合以來，該方法一直是我們業務計劃的核心。一是內部，與我們報告的資產管理業務部門相同，包括我們的工業、商業和土地開發平台。這些物業由FRP 100%開發、管理和擁有；二、採礦及特許權使用費；三、第三方合資企業，顧名思義，是與第三方合作開發的項目，其中FRP是主要所有者，但依靠經驗豐富且受人尊敬的第三方運營夥伴來履行大部分權利、建設和運營日常運營；第四，貸款企業，這是我們住宅土地開發活動的主要資金來源。

Relative to our in-house or asset management platform, occupancy at our 3 buildings at Hollander Business Clark since the beginning of the year as well as rent growth on renewals at Cranberry have produced a healthy lift to our NOI. As of last month, our buildings in Hollander totaling 247,000 square feet are fully occupied, helping to lift second quarter NOI for our in-house properties to $834,000 versus $681,000 in the same period last year. This represents a 23.8% increase.

相對於我們的內部或資產管理平台，自年初以來我們在 Hollander Business Clark 的 3 座大樓的入住率以及 Cranberry 續租的租金增長為我們的 NOI 帶來了健康的提升。截至上個月，我們位於荷蘭德的總面積為 247,000 平方英尺的建築已全部入住，這有助於將我們的內部物業第二季度的 NOI 提升至 834,000 美元，而去年同期為 681,000 美元。這意味著增長了 23.8%。

Our industrial pipeline is strong with 3 projects in the queue. The 17-acre parcel in the Perryman industrial section of Harford County, Maryland, not too distant from our other assets in Aberdeen, received its building permit this week for our planned 259,000 square foot warehouse building, which based by current -- based upon current market conditions, we plan to commence construction this month.

我們的工業管道很強大，有 3 個項目正在排隊。馬里蘭州哈福德縣佩里曼工業區佔地17 英畝的地塊，距離我們在阿伯丁的其他資產不太遠，本週獲得了我們計劃建造的259,000 平方英尺倉庫大樓的建築許可證，該建築基於當前- 基於當前根據市場情況，我們計劃本月開工。

Predevelopment activities on our 170-acre tract in Northeast Maryland are ongoing and pending favorable market conditions, we could break ground as early as mid-2024 from a 900,000 square foot distribution facility at this location.

我們位於馬里蘭州東北部 170 英畝土地上的預開發活動正在進行中，等待有利的市場條件，我們最早可能會在 2024 年中期在該地點建造一座 900,000 平方英尺的配送設施。

Finally, our 55-acre tract of land in Aberdeen, Maryland, adjacent to the Cranberry Run Business Park is being designed with multiple options to deliver several buildings or a single large distribution center. Options include 600,000 to 700,000 square feet under roof, depending on final design and market dynamics. Existing land leases for the storage of trailers on-site helped to offset our carrying entitlement costs in this property. Depending on market demand, we could very well begin construction here in 2025 or 2026.

最後，我們位於馬里蘭州阿伯丁的 55 英畝土地，毗鄰 Cranberry Run 商業園，正在設計多種選項，可交付多棟建築或單個大型配送中心。選項包括 600,000 至 700,000 平方英尺的屋頂面積，具體取決於最終設計和市場動態。用於現場存放拖車的現有土地租賃有助於抵消我們在該物業中的持有權利成本。根據市場需求，我們很可能在 2025 年或 2026 年開始建設。

Completion of these 3 aforementioned development projects will add over 1.9 million square feet of additional warehouse product through industrial properties that when added to the assets already in operation will create over 2.35 million square feet.

上述 3 個開發項目的完成將通過工業地產增加超過 190 萬平方英尺的額外倉庫產品，當添加到已投入運營的資產中時，將創造超過 235 萬平方英尺的倉庫產品。

Relative to mining and royalty, as John, III stated in his opening remarks, our mining and royalty division saw revenues for the quarter of $3,264,000 versus $2,883,000 in the same period last year. This is record revenue for any quarter in the mining and royalty segment for the second quarter in a row. NOI was $3,125,000, an increase of 14% over the same period last year.

相對於採礦和特許權使用費，正如約翰三世在開場白中所述，我們的採礦和特許權使用費部門本季度的收入為 3,264,000 美元，而去年同期為 2,883,000 美元。這是連續第二個季度採礦和特許權使用費領域任何季度的創紀錄收入。 NOI為3,125,000美元，比去年同期增長14%。

Moving on to our third-party joint ventures. Currently, we operate both under development and stabilized projects with 4 distinct partners: MRP, Steuart Investment Company, Woodfield and St. John Properties. The difference between underdevelopment and stabilized being a sustained occupancy level of 90% for a minimum loan of 90 days.

繼續我們的第三方合資企業。目前，我們與 4 個不同的合作夥伴一起運營正在開發和穩定的項目：MRP、Steuart Investment Company、Woodfield 和 St. John Properties。欠發達和穩定之間的區別在於，最低貸款期限為 90 天，入住率持續保持在 90%。

As of 6/30, our JV platform includes 6 -- excuse me, 7 mixed-use projects; 6 mixed-use residential projects totaling 108 -- 1,827 apartments and 198,000 square feet retail; and 1 mixed-use office project totaling 72,000 square feet of single-story office and 27,950 square feet of retail.

截至6月30日，我們的合資平台包括6個——對不起，7個綜合體項目； 6個混合用途住宅項目，總計108至1,827套公寓和198,000平方英尺的零售空間； 1個綜合用途辦公項目，單層辦公面積總計72,000平方英尺，零售面積總計27,950平方英尺。

4 mixed-use residential projects are located in Washington, D.C. where MRP is our joint venture partner. Our neighboring projects, Dock 79 and Maren along the Anacostia River where our partners include MRP Realty and most recently, Steuart Investment Company, remained healthy with occupancies of 95.4% and 94.3%, respectively, at quarter's end with all retail fully leased.

4 個多功能住宅項目位於華盛頓特區，MRP 是我們的合資夥伴。我們鄰近的項目，即阿納科斯蒂亞河沿岸的Dock 79 和Maren，我們的合作夥伴包括MRP Realty 和最近的Steuart Investment Company，截至季度末，所有零售店全部出租，入住率分別為95.4% 和94.3%，保持健康發展。

Quarterly renewal success rates consisted of Dock 79 at 65.31% and Maren at 39.6% with rental rent -- rate increases of 3.74% and 6.6%, respectively. Bryant Street, a multi-building, transit-oriented, mixed-use project located on the Wet Law in Northeast contains 3 residential buildings as well as a movie theater, anchored retail building and a flexible outdoor platform fully leased to a unique entertainment concept called Metro Bar.

季度續約成功率包括 Dock 79 為 65.31% 和 Maren 為 39.6%，租賃租金分別上漲了 3.74% 和 6.6%。布萊恩特街(Bryant Street) 是一個多建築、以交通為導向的綜合用途項目，位於東北部濕法(Wet Law) 上，包含3 棟住宅樓以及一座電影院、固定零售建築和一個靈活的戶外平台，完全出租給一個獨特的娛樂概念，名為“Bryant Street”。地鐵酒吧。

At the end of the second quarter, Bryant Street's 3 residential towers totaling 478 residential units were 93% -- 93.2% occupied, and its retail components were 95.9% leased and 79% occupied. 67.25% of expiring residential tenants renewed the lease with a combined average rental rate renewal increase of 2.86% for the quarter.

截至第二季度末，布萊恩特街的 3 座住宅樓共計 478 個住宅單元，入住率為 93% - 93.2%，其零售部分的出租率為 95.9%，入住率為 79%。 67.25% 的到期住宅租戶續租，本季度平均續租租金率上漲 2.86%。

For Food Hall, Bryant Street market opened in March and has seen early success with 8 of 9 stalls leased, and the first 4 tenants have opened for business. The grand opening for the Bryant Street market is planned for the fourth quarter this year.

至於美食廣場，布萊恩特街市場於 3 月份開業，並取得了早期成功，9 個攤位中的 8 個已出租，首批 4 個租戶已開業。布萊恩特街市場計劃於今年第四季度盛大開業。

The Alamo Drafthouse theater and entertainment venue continues to see greater revenues that have been enhanced by blockbuster films, such as Mission Impossible, Oppenheimer and Barbie.

阿拉莫繪圖室劇院和娛樂場所的收入持續增長，這得益於《碟中諜》、《奧本海默》和《芭比娃娃》等大片的推動。

Our fourth and newest mixed-use residential project in the district, Verge, received its final certificate of occupancy in the first quarter and is showing strong performance at 68.6% lease and 43.3% occupied. A significant boost in leasing over the first quarter was nearly half or 45% of retail spoken for as of the end of June. In terms of velocity, we gained occupancy of 22 units per month on average during the second quarter at Verge.

我們在該地區的第四個也是最新的混合用途住宅項目 Verge 在第一季度收到了最終的入住證書，並以 68.6% 的租賃率和 43.3% 的入住率表現出強勁的表現。截至 6 月底，第一季度的租賃量顯著增加，佔零售業的近一半或 45%。就速度而言，第二季度 Verge 的入住率平均每月增加 22 個單位。

Moving on, our 2 projects in Greenville, South Carolina with Woodfield Development as our development partner are seeing great success. Riverside in its 200 apartments was 95.5% occupied and renewed 61.76% of expiring leases with rental rate increases of 11.96% for the second quarter.

接下來，我們在南卡羅來納州格林維爾與 Woodfield Development 作為我們的開發合作夥伴的 2 個項目取得了巨大成功。 Riverside 的 200 套公寓的入住率為 95.5%，續簽了 61.76% 的到期租約，第二季度租金上漲了 11.96%。

.408 Jackson was placed in service during the fourth quarter in '22. And at quarter's end, its 227 apartments were 85.9% leased and 76.2% occupied. Another strong performer in lease-up, .408 demonstrated a significant boost in occupancy over the second quarter, averaging 29 units per month. Its retail component is fully leased and targeting an opening date in the fourth quarter this year.

.408 Jackson 在 22 年第四季度投入使用。截至季度末，其 227 套公寓的出租率為 85.9%，入住率為 76.2%。另一個在租賃方面表現強勁的 0.408 公寓第二季度的入住率顯著提高，平均每月 29 套。其零售部分已全部出租，預計於今年第四季度開業。

Relative to the 6 aforementioned mixed-use residential joint venture projects, FRP's share of NOI was $3,290,250 versus $3,049,948 in the same quarter last year, a 7.9% increase.

相對於上述6個混合用途住宅合資項目，FRP在NOI中的份額為3,290,250美元，而去年同期為3,049,948美元，增長了7.9%。

The last or seventh mixed-use project that makes up our third-party JV division is undertaken with St. John's Properties, a pioneer in flex and office development and former National Developer of the Year. With St. John, we are developing Windlass Run in Baltimore County, Maryland that includes 72,080 square feet of single-story office and 27,950 square feet of retail. This project is now 62.79% leased and 48% occupied overall due to an increase in lease space over the second quarter as a result of a new 12,000 square foot office lease. NOI for this past quarter for this asset was $109,213 versus $102,400 over the same period last year or a 6.7% increase.

構成我們第三方合資部門的最後一個或第七個綜合用途項目是與 St. John's Properties 合作的，St. John's Properties 是靈活和辦公開發領域的先驅，也是前年度國家開發商。我們正在與 St. John 合作，在馬里蘭州巴爾的摩縣開發 Windlass Run，其中包括 72,080 平方英尺的單層辦公室和 27,950 平方英尺的零售店。由於第二季度新增 12,000 平方英尺的辦公室租賃，租賃空間有所增加，該項目目前已出租 62.79%，總體佔用率為 48%。該資產上一季度的 NOI 為 109,213 美元，而去年同期為 102,400 美元，增長 6.7%。

Funding ventures, the last leg of our operating stool. This is a program where we provide working capital toward the entitlement and horizontal development of single-family residential projects, and ultimately, a sale to national homebuilders. The first of our 2 current projects is Amber Ridge in PG County, Maryland with a total commitment to this project of $18.5 million. The investment includes a charged 10% interest rate and a minimum preferred return of $0.20 -- 20%, above which a profit-induced waterfall determines the final split of proceeds.

融資企業是我們運營的最後一步。在該計劃中，我們為單戶住宅項目的權利和橫向開發提供營運資金，並最終出售給全國住宅建築商。我們當前的 2 個項目中的第一個項目是馬里蘭州 PG 縣的 Amber Ridge，該項目的總投資額為 1,850 萬美元。該投資包括收取 10% 的利率和 0.20 至 20% 的最低優先回報率，高於該回報率則由利潤引起的瀑布決定收益的最終分配。

All the 23 of the 187 lots have been taken down as of June 30 and $19.6 million of principal interest and profits has been returned as of the end of the quarter. The final 23 units provide additional profits are on track to be taken down by year-end.

截至 6 月 30 日，187 塊地塊中的 23 塊已全部下架，截至本季度末已返還本金和利潤 1,960 萬美元。最後 23 個提供額外利潤的單位有望在年底前收回。

Our other current lending venture is called Presbyterian Homes, which is a 344-lot, 110-acre residential development project in Aberdeen, Maryland. We have committed $31.1 million in funding under similar terms as Amber Ridge. The national homebuilder is under contract to purchase all the lots, which include 222 townhomes and 122 single-family dwellings. Horizontal construction has begun and we expect the first lots to be taken down in Q4 this year.

我們目前的另一個貸款項目稱為 Presbyterian Homes，這是位於馬里蘭州阿伯丁的一個佔地 344 塊、110 英畝的住宅開發項目。我們已按照與 Amber Ridge 類似的條款承諾提供 3110 萬美元的資金。這家國家住宅建築商已簽訂合同購買所有地塊，其中包括 222 套聯排別墅和 122 套單戶住宅。橫向施工已經開始，我們預計第一批地塊將於今年第四季度拆除。

In closing, we are pleased with the company's performance this quarter. I would be remiss not to mention the headwinds facing us. In Washington, D.C., the volume of new apartment units being delivered is significant will present a challenge for our leasing trends and could impact our rental rate expectations.

最後，我們對公司本季度的業績感到滿意。如果不提及我們面臨的逆風，那就太失職了。在華盛頓特區，新公寓單元的交付量很大，這將對我們的租賃趨勢構成挑戰，並可能影響我們的租金預期。

Additionally, a rising interest rate environment presents challenges for construction material pricing and availability as well as affordable financing terms. On a positive note, competitive developers who may not be buttressed by a balance sheet like ours might not be able to obtain or have the available capital to construct projects like our upcoming 259,000 square foot warehouse facility with Chelsea God.

此外，利率上升的環境對建築材料的定價和供應以及可承受的融資條件提出了挑戰。從積極的角度來看，那些可能沒有像我們這樣的資產負債表支撐的有競爭力的開發商可能無法獲得或沒有可用資本來建設項目，例如我們即將與 Chelsea God 合作的 259,000 平方英尺倉庫設施。

We have flourished in a constantly changing environment due in no small part to the strength of our financial foundation and the consistent efforts of our talented teams. We look forward to building upon our successes and finding new ways to exploit our skills in the marketplace.

我們能夠在不斷變化的環境中蓬勃發展，這在很大程度上要歸功於我們雄厚的財務基礎和我們才華橫溢的團隊的不懈努力。我們期待在我們的成功基礎上再接再厲，尋找新的方法來在市場上發揮我們的技能。

Thank you, and I'll now turn the call back to John.

謝謝您，我現在將把電話轉回給約翰。

Thank you, David. At this point, we're happy to open the call up to any questions you might have.

謝謝你，大衛。此時，我們很樂意通過電話解答您可能提出的任何問題。

(Operator Instructions) And our first question will come from Curtis Jensen with Robotti.

（操作員說明）我們的第一個問題將來自 Curtis Jensen 和 Robotti。

We'll move next to Stephen Farrell with Oppenheimer.

我們將與奧本海默一起移至斯蒂芬·法雷爾旁邊。

First question regarding your comments about the construction loans, what is the sensitivity of rental rates in relation to construction loans?

關於您對建築貸款的評論的第一個問題，租金率相對於建築貸款的敏感性是什麼？

I don't quite understand your question, Stephen. John...

我不太明白你的問題，斯蒂芬。約翰...

In other words, with development on the sidelines, how do you see the restriction of new supply affecting rental rates?

換句話說，在開發處於觀望狀態的情況下，您如何看待新增供應的限制對租金率的影響？

Well, obviously, the -- all of the construction loans out there are floating, right? So for example, year-over-year, these interest rates have gone up for us between 3.5% and 4%. The market is going to dictate what the rental rates. We've talked about our rental rates have actually done pretty well and favored pretty well over the last 12 months, whether they're already there through trade-outs and lease-ups.

嗯，顯然，所有的建築貸款都是浮動的，對吧？例如，我們的利率同比上漲了 3.5% 至 4%。市場將決定租金率。我們已經談到，在過去 12 個月裡，我們的租金率實際上表現得相當不錯，而且無論是通過以舊換新還是租賃升級已經實現了這一水平。

I think where the big pull is going to come from, Stephen, is our buildings are done. And so we don't have to worry about what's happened with the increased construction costs and material pricing because that's behind us. So I think that's probably the big issue. And trying to get out and start a new building with these kind of interest rates is going to be very, very difficult at that.

斯蒂芬，我認為巨大的推動力將來自於我們的建築竣工。因此，我們不必擔心建築成本和材料價格增加所發生的情況，因為這已經成為過去。所以我認為這可能是個大問題。試圖以這樣的利率走出去並建造一座新建築將是非常非常困難的。

And at what level do you think it does make sense to either from a rent level and increase in rental rates or cost perspective?

您認為從租金水平和租金上漲或成本角度來看，在什麼水平上才有意義？

Well, again, the rental rates are really not subject to anything other than the market. There is a lot of competition in D.C., especially with a lot of the new units coming on. So that drives your rental rates. We look at the rental rate market for all of the competition every day. And so we raised in lower prices, depending on the type of unit, the location of units. So that kind of does its own thing.

好吧，再說一遍，租金率實際上不受市場以外任何因素的影響。華盛頓特區的競爭非常激烈，尤其是有很多新單位即將推出。這會提高你的租金水平。我們每天都會關注所有競爭對手的租金市場。因此，我們根據單位類型和位置提高了較低的價格。所以這就是它自己的事情。

Interest rates, we can't control. The only thing we can do is decide not to start something. But if the interest rates continue to go up, obviously, they do have an impact on our operating cash flow.

利率，我們無法控制。我們唯一能做的就是決定不開始某件事。但如果利率繼續上升，顯然，它們確實會對我們的經營現金流產生影響。

David, what would you say the interest rate on a typical construction loan would be today?

大衛，你認為今天典型的建築貸款利率是多少？

Well, for example, the 3 that we have at Bryant Street, that's 7.4% as of June -- the end of June. That's probably the biggest. We have another one at 7.2% and another one at 7.4%. So they've literally gone from the 3s up to the 7s. And they usually run on a SOFR -- an average 30-day SOFR and anywhere from 2.25 to 2.50 basis points. But anything coming out today, the new loans -- or the basis points are in the mid- to high 3s. So it's not another interest rate point with the new stuff rather than the existing.

嗯，例如，我們在布萊恩特街擁有的 3 家，截至 6 月（6 月底）為 7.4%。這可能是最大的。我們還有另外一個為 7.2%，另一個為 7.4%。所以他們實際上已經從 3 秒變成了 7 秒。它們通常按照 SOFR 運行——平均 30 天的 SOFR，從 2.25 到 2.50 個基點不等。但今天發布的任何數據，無論是新貸款還是基點都在 3 左右。因此，這不是新產品而不是現有產品的另一個利率點。

Yes, I think you'd have to see sustained really high increases in rental rates in order to justify taking on that kind of construction line to build.

是的，我認為你必須看到租金持續大幅上漲，才能證明建造這種建築線是合理的。

You do.

你做。

Yes.

是的。

For example, our Riverside property in South Carolina, we got almost a 12% increase in our rental rates for the second -- for the -- for all the tenants coming due in the second quarter. That's a dramatic increase. But you need -- you're going to need, as John said, some sustain -- not to be that high, but you do need to have some pretty strong rent growth to be able to support these kind of interest rates.

例如，我們在南卡羅來納州河濱的房產，對於第二季度到期的所有租戶來說，第二季度的租金上漲了近 12%。這是一個戲劇性的增長。但你需要——正如約翰所說，你需要一些維持——不要那麼高，但你確實需要有一些相當強勁的租金增長才能支持這種利率。

And longer term, maybe 2 to 3 years down the road, I would think that restricting the supply and development being on the sidelines would be beneficial to properties like Bryant Street and just rental rates in general. Do you think -- did you have a similar view?

從長遠來看，也許是未來兩到三年，我認為限制供應和開發將有利於像布萊恩特街這樣的房產以及總體租金率。你認為——你有類似的觀點嗎？

I think that will definitely help. And David, you can answer that.

我認為這肯定會有幫助。大衛，你可以回答這個問題。

Well, it's interesting, Stephen -- you're absolutely right, we do. There's going to be a slowdown in deliveries in '25 and '26 because of that. It takes basically 2 years to build these things. And the fascinating thing that's happened throughout the country is that during COVID, there wasn't a whole lot of construction. So it got ramped up in the -- late in the year and early in 2021, which has led to a lot of units coming online over the last 6 to 9 months, causing a record number of units available in the market now. So as the project lease up, then there's going to be -- the whole thing is going to change. And we think '25 and '26 could be great years for rental rate increases.

嗯，這很有趣，斯蒂芬——你是絕對正確的，我們確實如此。因此，25 年和 26 年的交付量將會放緩。建造這些東西基本上需要兩年時間。全國各地發生的令人著迷的事情是，在新冠疫情期間，並沒有進行大量的建設。因此，它在今年年底和 2021 年初得到了加強，這導致許多單位在過去 6 到 9 個月內上線，導致目前市場上的可用單位數量達到創紀錄水平。因此，隨著項目租賃完畢，整個事情都會發生變化。我們認為“25 年”和“26 年”可能是租金上漲的好年份。

And maybe I missed this in the call. Do you have an updated time line for development of phase (inaudible)? I know you just said now you needed big rent increases or reduction in the rates on the construction loan, but do you foresee pushing it back farther, maybe '24 -- end of 2024, '25? What are your thoughts on that?

也許我在電話中錯過了這一點。您是否有更新的階段開發時間表（聽不清）？我知道您剛才說過，您現在需要大幅增加租金或降低建築貸款利率，但您是否預計會進一步推遲，也許是'24 - 2024 年底，'25？您對此有何看法？

Well, we're still what -- the plan right now, Stephen, is we're going through the entitlement process, which takes a while. We want -- which could probably -- should probably be sometime here in this quarter to the beginning of the fourth. And then we'll take a look at all the metrics, right? Part of our deal, and we usually don't go into these things without guaranteed maximum prices from contractors and we have everything lined up, not to mention the fact it's a good construction [loan], unless something changes dramatically that we would consider starting that in '23, not to mention the fact, starting something in the winter, Washington is not very favorable from an efficiency standpoint. So I -- probability says that we wouldn't get it probably until sometime in '24 if -- again, if the market conditions dictate such a thing.

好吧，我們仍然是——斯蒂芬，現在的計劃是我們正在經歷授權過程，這需要一段時間。我們希望——這可能——應該是在本季度到第四季度初的某個時間。然後我們會看看所有的指標，對吧？作為我們交易的一部分，如果沒有承包商保證最高價格，我們通常不會介入這些事情，而且我們已經把一切都安排好了，更不用說這是一筆很好的建築[貸款]，除非發生巨大的變化，我們會考慮開始在23年，更不用說事實上，從效率的角度來看，在冬天開始一些事情，華盛頓並不是很有利。所以我——概率表明，如果——再次，如果市場條件決定這樣的事情，我們可能要到 24 年的某個時候才能得到它。

And turning to Industrial. We have -- starts are down, and we're starting to see some pressure on rents in the country, whereas supply and demand dynamics around Baltimore?

並轉向工業。我們的開工率下降了，我們開始看到該國的租金面臨一些壓力，而巴爾的摩周圍的供需動態呢？

We -- not so much. The development is somewhat restricted. For example, where our Chelsea property is, which is the one that I mentioned earlier, which is getting literally ready to start this week, there's a moratorium on all new construction in the area. So we're like the -- not only is it tough for certain people to spend that kind of money to build a building, they're not accepting any permit applications. So we're like the only game in town starting literally next, and it will come on a year from now. And we're excited about that market because the vacancies are very low and the rental rates have done very, very well. I mean the vacancies are still well below the prepandemic norms. It's a very tight market.

我們——沒那麼多。發展受到一定限制。例如，我之前提到的我們位於切爾西的房產，實際上已準備好在本週開工，但該地區的所有新建築都已暫停。所以我們就像——對於某些人來說，不僅很難花那麼多錢來建造一座大樓，而且他們不接受任何許可證申請。所以我們就像鎮上唯一一場從字面上開始的遊戲，它將在一年後開始。我們對這個市場感到興奮，因為空置率非常低，而且租金也非常非常好。我的意思是，職位空缺仍遠低於大流行前的標準。這是一個非常緊張的市場。

And with the timing of the phase one of Steuart being pushed back, do you envision using cash to opportunistically invest in additional industrial properties or just developing the pipeline?

隨著斯圖爾特第一階段的時間被推遲，您是否設想使用現金來機會主義地投資更多的工業地產或只是開發管道？

We're always looking for value add, Stephen, for example, our Cranberry Run Business Park with that, which we've enjoyed some really strong results in that property over the last several quarters. We're always in the market for value-add stuff, for sure. And if something comes along and it works and we've kind it's not, so it doesn't require so much rehabilitation or refurbishment and the numbers work, we'd absolutely consider it.

我們一直在尋找增值，斯蒂芬，例如，我們的 Cranberry Run 商業園，在過去的幾個季度中，我們在該物業中取得了一些非常強勁的業績。當然，我們總是在市場上尋找增值產品。如果有什麼東西出現並且有效，而我們認為它沒有，所以它不需要太多的修復或翻新，而且數字有效，我們絕對會考慮它。

And have you seen any opportunities in nondevelopment properties or maybe the seller might need liquidity or anything of that nature?

您是否在非開發物業中看到過任何機會，或者賣方可能需要流動性或類似性質的任何東西？

We haven't yet. We're very particular in who we do business with. We've got a pretty strong team of folks in MRP and Woodfield, St. John. And so we don't have -- we were very careful as to being out in the market and looking for other platforms that would be in a joint venture type of business. That would be a tough one.

我們還沒有。我們對與誰做生意非常挑剔。我們在 MRP 和聖約翰伍德菲爾德擁有一支非常強大的團隊。所以我們沒有——我們非常謹慎地進入市場並尋找其他屬於合資企業類型的平台。那將是一項艱難的任務。

We're always looking. We look at properties every day in certain areas. Obviously, throughout the north, it's the Southeast. North Carolina, South Carolina, we've got our eye on. Obviously, because we've got projects in South Carolina. So yes, we're always -- we're looking in the banks that we've been dealing with. And the lenders know who we are and the fact that we're fairly strong from a balance sheet standpoint, and we're good boots-on-the-ground operators. So many of these people would develop properties before. And they were -- there's a lot of fee developers out there that would them and sell them and move on to the next one. But we've historically been pretty strong in managing these assets. So we bring a lot of -- we think we bring a lot to the table with our joint venture partners, for sure.

我們一直在尋找。我們每天都會查看某些地區的房產。顯然，整個北部都是東南部。北卡羅來納州、南卡羅來納州，我們都在關注。顯然，因為我們在南卡羅來納州有項目。所以，是的，我們一直在尋找與我們打交道的銀行。貸款人知道我們是誰，也知道我們從資產負債表的角度來看相當強大，而且我們是優秀的腳踏實地的經營者。這些人中有很多人以前都開發過房產。他們是——有很多收費開發商願意他們，然後賣掉它們，然後轉向下一個。但從歷史上看，我們在管理這些資產方面一直相當強大。因此，我們肯定會與合資夥伴一起帶來很多東西。

(Operator Instructions) And next we have Curtis Jensen with Robotti.

（操作員說明）接下來是 Curtis Jensen 和 Robotti。

I got cut off earlier. Sorry it was my fault, but I apologize if I'm redundant here. I have a couple of questions. And the first one is sort of about presentation. Specifically when I go from the text -- your text disclosure in the press release to kind of like the tables. And it seems to may even get a little cloudier when I think about the GAAP accounting for all this. But I like to take an example, Bryant Street. Is Bryant Street considered stabilized at this point? It's been 90 days above 90%?

我之前就被切斷了。抱歉，這是我的錯，但如果我在這裡多餘的話，我深表歉意。我有一些問題。第一個是關於演示的。具體來說，當我從新聞稿中披露的文本到有點像表格時。當我想到 GAAP 對這一切的解釋時，情況似乎變得更加陰暗。但我想舉一個例子，布萊恩特街。布萊恩特街目前是否已穩定？ 90%以上已經90天了？

No, sir, it has not reached it yet. It's going to probably make it next quarter. It has to be -- we still got just because it's leased got to be occupied. And the residential is not quite there for 90 days, which is what kind of the mark that we put on. And the retail is still having people move in, but it was close.

不，先生，還沒有達到這個目標。它可能會在下個季度實現。它必須是——我們仍然只是因為它是租來的，所以必須被佔用。而且住宅還沒有完全存在90天，這就是我們打上的是什麼樣的標記。零售業仍在吸引人們入住，但已經接近了。

So is the -- when I go to the table and I see the Development segment, and I see like the 3 months results of, the lease revenue was $467,000. Is that Bryant Street's lease year portion of Bryant Street? Or is there something else? Or is Bryant Street revenue -- lease revenue disclosed somewhere else?

也是如此——當我看到開發部門時，我看到了 3 個月的結果，租賃收入為 467,000 美元。那是布萊恩特街的租賃年部分嗎？或者還有別的什麼嗎？或者布萊恩特街的收入——租賃收入是否在其他地方披露？

This is John Klopfenstein. Our unconsolidated joint ventures, which includes Bryant Street, Verge, Riverside, all the Greenville, .408 Jackson, they're all unconsolidated. So from a GAAP perspective on our income statements, they don't run through revenue or expense. They all run through that one line on the income statement that you find on the main page called equity and loss of joint ventures. But we are going to be filing our 10-Q today and in the footnote about our joint ventures, you'll find a breakdown of each of those joint ventures income statement showing the revenue and expense.

這是約翰·克洛普芬斯坦。我們未合併的合資企業，包括 Bryant Street、Verge、Riverside、所有 Greenville、0.408 Jackson，它們都是未合併的。因此，從我們的損益表的公認會計準則角度來看，它們不包含收入或費用。它們都貫穿於損益表中的一行，您可以在主頁上找到該行，稱為合資企業的權益和損失。但我們今天將提交 10-Q 報表，在有關我們合資企業的腳註中，您會發現每個合資企業損益表的明細，顯示收入和費用。

Okay. So when I go into the tables in your press release and I see Development segment, that's not going to include Riverside or Bryant Street or anything like that? Anything that's -- like somewhere between development and stabilized and not...

好的。因此，當我進入你們新聞稿中的表格並看到開發部分時，這不會包括河濱街或布萊恩特街或類似的地方？任何東西——比如介於發展和穩定之間的東西，而不是……

It does not. And it won't be included in stabilized joint ventures in revenue and expense either in the future once it stabilizes because those aren't our revenues. They're our joint venture partners' revenues. So you'll have to refer to the table we've been talking about in the footnotes.

它不是。一旦穩定下來，它也不會被納入穩定的合資企業的收入和費用中，因為這些不是我們的收入。它們是我們合資夥伴的收入。因此，您必須參考我們在腳註中討論的表格。

Okay. And then I guess for GAAP purposes, it will continue to be showing equity and loss of -- or equity and joint ventures?

好的。然後我想，出於公認會計準則的目的，它將繼續顯示股權和損失——或者股權和合資企業？

That's exactly right. They will always be there.

完全正確。他們將永遠在那裡。

All right. So the only 2 things in your tables that are considered stabilized joint ventures are The Maren and Dock? So that's been consistent over time?

好的。那麼，您表中唯一被視為穩定合資企業的兩件事是 The Maren 和 Dock？那麼隨著時間的推移，這一直是一致的嗎？

That's correct. Yes, Riverside is not reflected in that table in revenues and expenses because of the GAAP treatment that's required.

這是正確的。是的，由於需要採用 GAAP 處理，Riverside 並未反映在該表的收入和支出中。

All right. I just hope you -- I mean it is -- I understand how you disclosed it as like Bryant Street is a mixed-use joint venture between FRP and MRP, but it's not it's not disclosed the same way. It's not -- if I were a first-time reader, I'd say, "Okay, I'm going to look under joint ventures." And then I go to the table and I say how that stabilized joint venture, but that's (inaudible). Anyway, it's a little bit confusing to me, and I've been around the company for 7 years. I guess the one..

好的。我只是希望你——我的意思是——我理解你如何披露它，就像布萊恩特街是FRP 和MRP 之間的混合用途合資企業一樣，但事實並非如此，它沒有以同樣的方式披露。事實並非如此——如果我是第一次讀者，我會說，“好吧，我要看看合資企業。”然後我走到桌子旁，說如何穩定合資企業，但就是這樣（聽不清）。不管怎樣，這對我來說有點困惑，而且我在這家公司已經工作了 7 年了。我猜是那個..

The feedback, we'll see if we can improve that disclosure in the future to highlight...

根據反饋，我們將看看將來是否可以改進該披露以突出......

I only say it because the NOI from your multifamily and mixed-use is going to becoming bigger and bigger and bigger over the next couple of years. And then, of course, you've got a whole other stream of income coming on in asset management. And so as a -- from a place of trying to analyze the company, I'm going to have to go from kind of book value, asset values, development kind of assets to income-earning, income-producing properties. And it's going to be harder to dissect all of this if there isn't some more disclosure about that, I think is. Anyway, I don't want to hold this up on that. But on The Verge, again, apologies if I'm being redundant here, consistent with your heads-and-beds philosophy, are you having to offer a lot of incentives to get people over there or unusual incentives? Or is it just kind of you're pretty happy with it?

我這麼說只是因為多戶住宅和混合用途住宅帶來的 NOI 在未來幾年會變得越來越大。當然，你還可以通過資產管理獲得完全不同的收入來源。因此，作為一個試圖分析公司的人，我將不得不從賬面價值、資產價值、開發資產轉向創收、創收的財產。我認為，如果沒有更多的披露，剖析所有這些將會變得更加困難。無論如何，我不想就此擱置。但在 The Verge 上，如果我在這裡多餘的話，我再次表示歉意，這與你們的“頭和床”理念一致，你們是否必須提供很多激勵措施來吸引人們過來，或者提供不尋常的激勵措施？或者只是你對此感到非常滿意？

We're actually pretty happy with it right now. As I said, we've been moving a lot of people in, and we actually did a temporary program with a group called Placemaker, which takes on --which actually takes it on 27 units as of June 1. And then they lease them -- they master lease effectively that way. So we're really -- and so that's 27 units that we would not have been able to get occupied that quick because they -- interestingly enough, they rent these spaces to professionals and that kind of thing for 30 -- a minimum of 30 days.

我們現在實際上對此非常滿意。正如我所說，我們已經搬進了很多人，實際上我們與一個名為 Placemaker 的組織進行了一個臨時計劃，截至 6 月 1 日，該組織實際上佔用了 27 個單元。然後他們將它們出租——他們以這種方式有效地掌握租賃。所以我們真的 - 所以這 27 個單位我們不可能這麼快就被佔用，因為他們 - 有趣的是，他們將這些空間租給專業人士以及類似的東西 30 - 至少 30天。

And in fact, when they moved in, in June 1, they took all 27 units. We had them for a year, and we're wondering -- and that's -- we kind of do a 60-40 split. We get 60% of the revenues, and they get 40%. And the place is leasing up so quick, we're wondering if that was a great idea or not. But things are going very well with The Verge. But look, we are giving it 1 to 1.5 months concessions, which is not overly panel. But once -- just like we did with Coda and that kind of thing, when you open these things up in December, the early months of the year and the late months of the year are not the best months to be opening up for lease. And now that we've come into the summer and into the fall, the rents are getting a little stronger, as you can see. So -- but yes, we're -- so far, we're pretty happy with it. One of the concrete plants has come down. That was the Steuart's side. So we're looking to animate that area just to the right of Verge. And of course, you've got the soccer stadium behind us. There's a lot of really good things going on over there. So we're pretty happy with it as of -- so far, so good.

事實上，當他們 6 月 1 日搬進來時，他們就拿下了全部 27 個單位。我們已經使用它們一年了，我們想知道——那就是——我們做了 60-40 的分配。我們得到60%的收入，他們得到40%。而且這個地方出租得太快了，我們想知道這是否是一個好主意。但 The Verge 的進展非常順利。但是看，我們給予它 1 到 1.5 個月的優惠，這並不過分。但有一次——就像我們對Coda 之類的事情所做的那樣，當你在12 月開放這些東西時，今年的前幾個月和今年的最後幾個月並不是開放租賃的最佳月份。現在我們已經進入夏季和秋季，正如您所看到的，租金正在變得有點上漲。所以，但是，是的，到目前為止，我們對此非常滿意。其中一棟混凝土工廠倒塌了。那是斯圖爾特家族那邊。因此，我們希望對邊緣右側的區域進行動畫處理。當然，我們身後還有足球場。那裡發生了很多非常好的事情。所以我們對它非常滿意——到目前為止，一切都很好。

Would you -- and maybe this is jumping kind of a little. You talked about an Analyst Day in October. Would you anticipate sort of a property tour again? Just...

你會嗎——也許這有點跳躍。您談到了十月份的分析師日。您會期待再次進行房產參觀嗎？只是...

Yes, I think that would be part and parcel of it.

是的，我認為這將是其中的一部分。

Yes. Yes, for sure.

是的。是肯定的。

Circling back to Bryant Street for a second. Did I hear -- there's still a construction loan on that? Or are you moving towards mortgage? I mean, is -- can a mortgage kind of come in under a 7.4% or whatever I heard David say is the construction loan?

繞回布萊恩特街一秒鐘。我聽說——還有建築貸款嗎？或者你正轉向抵押貸款嗎？我的意思是，抵押貸款利率可以低於 7.4% 或我聽到大衛所說的建築貸款嗎？

They -- well, a permanent financing can -- does. They usually come in about 150 basis points or more less than a -- than the construction loan. We've still got some wood to chop at Bryant Street. The -- obviously, the units, we showed average for the 487 units, the average renewal rate for the 3 buildings averaged about 2.86%. They went from 1.8% all way up to 4.2%. But -- so the residential side is starting to come into its own. Where we feel the success of that project is really going to be as it continues to mature is in retail. And Alamo for -- as I mentioned, Alamo has done -- their sales are way up over last year, which was -- I guess people still like the Barbie movies, but they've done very well. So we're happy there. Our in-line retail, we have some new leases that take a while to move the tenants in. And so the animation of that area and a sense of place is not there yet. So it's not the greatest project right now, both from a from a lending standpoint and just from as you walk around, it still needs to mature a little bit more. So we'll take a look at it the beginning of '24 and see how things go. I mean we do have a -- we are looking at different options right now. We just haven't made a decision.

他們——嗯，永久融資可以——做到了。它們通常比建築貸款低約 150 個基點或更多。我們在布萊恩特街還有一些木頭要砍。顯然，我們顯示的單位數量為 487 個單位，這 3 棟建築的平均更新率約為 2.86%。他們從 1.8% 一路上升到 4.2%。但是——所以住宅方面開始發揮作用。我們認為，隨著該項目的不斷成熟，零售業將真正取得成功。阿拉莫——正如我提到的，阿拉莫已經做到了——他們的銷量比去年大幅增長，我想人們仍然喜歡芭比電影，但他們做得很好。所以我們在那裡很高興。我們的線內零售店有一些新的租約，需要一段時間才能讓租戶搬進來。因此，該區域的活力和地方感還沒有出現。因此，無論是從貸款的角度還是從實際情況來看，它都不是目前最偉大的項目，它仍然需要成熟一點。所以我們將在 24 年初關注它，看看事情進展如何。我的意思是，我們確實有一個——我們現在正在考慮不同的選擇。我們只是還沒有做出決定。

Is there anything going on across the street? I know there was a site across the street from Bryant Street that there was potential for development? Is there any movement there? Or is it sort of status quo? Second, is it an industrial site of...

街對面有什麼事嗎？我知道布萊恩特街對面有一個地方有開發潛力？那裡有什麼動靜嗎？或者這就是現狀？第二，這是一個工業用地嗎？

It is, it is. It's a couple of industrial-type buildings. Actually, one of them has a basketball court on the roof. But it's owned by a development entity. I believe they're going through the entitlement process and trying to figure out what they want to do. And that takes a while, as you know. We've been doing it down there since I won't -- I'm embarrassed to say how long we've been doing it. So it takes a while.

是的，是的。這是兩棟工業型建築。事實上，其中一間的屋頂上有一個籃球場。但它歸一個開發實體所有。我相信他們正在經歷權利流程並試圖弄清楚他們想要做什麼。如您所知，這需要一段時間。自從我不再這樣做以來，我們就一直在那裡做——我很不好意思地說我們已經這樣做了多久。所以需要一段時間。

But like that's the Steuart property. We're going through the entitlement process. It takes time. And then if you see something that says you may want to change the use or whatever, then that adds more time. For example, our Dock and Maren, we still have 2 more phases down there in Phase 3 and 4. We're going through a modification of that project that's going to take us about a year to change the use from office and hotels to residential. So it takes a while. But yes, to answer your question, there's some development -- predevelopment activity there across the street.

但這就是斯圖爾特財產。我們正在經歷權利流程。這需要時間。然後，如果您看到一些內容表明您可能想要更改用途或其他什麼，那麼就會增加更多時間。例如，我們的Dock 和Maren，我們還有2 個階段，即第3 階段和第4 階段。我們正在對該項目進行修改，這將需要我們大約一年的時間才能將用途從辦公室和酒店改為住宅。所以需要一段時間。但是，是的，為了回答你的問題，街對面有一些開發——預開發活動。

And I guess I'll wrap up with one more question. It's kind of on the lending ventures. Is that -- is the vision there to kind of strictly limit it to homebuilders? And is there a point when you say, "Let's wind it down." Or is this going to be an open-ended opportunistic lending vehicle with its -- where you've got dedicated personnel? And I mean, how do you see it?

我想我會再問一個問題。這有點像借貸企業。是不是——那裡的願景是嚴格限制住宅建築商參與？當你說“讓我們結束吧”時，有什麼意義嗎？或者這是否會成為一種開放式機會主義貸款工具，並擁有專門的人員？我的意思是，你怎麼看？

Yes, Curtis. This was a great, great way to put money to use with a partner that David has had a relationship with for a long time going back. And when we had post sale, a lot of cash on our balance sheet and no plans for it, and money market rates were roughly zero. This was a good way to get a good return on our money in a market and product type that we were comfortable with. I think going forward, as we plan to put more and more money into our own income-producing properties, we'll be less likely to do a lending venture.

是的，柯蒂斯。這是一個很好的方式，可以讓大衛與一個長期合作的伙伴一起使用金錢。當我們進行售後時，我們的資產負債表上有大量現金，但沒有計劃，貨幣市場利率大致為零。這是在我們滿意的市場和產品類型中獲得良好資金回報的好方法。我認為，展望未來，隨著我們計劃將越來越多的資金投入到我們自己的創收房產中，我們將不太可能進行貸款業務。

Okay. I agree. I mean, I thought it was a pretty interesting way to deploy capital. I think you're getting good returns. It might be interesting if you have a page on that in your Analyst Day presentation to kind of summarize the ins and outs of the cash and the returns on that would be interesting.

好的。我同意。我的意思是，我認為這是一種非常有趣的資本配置方式。我認為你會得到很好的回報。如果你在分析師日的演講中有一個頁面來總結現金的來龍去脈以及回報，那可能會很有趣。

Yes.

是的。

I guess there was an interest effect to take advantage of homebuilders who wanted to say asset-light and didn't want to commit and had sort of used options to develop properties at a way of thinking about it.

我猜想，利用房屋建築商的利益效應，他們想說輕資產，但不想承諾，並且有某種使用的選擇來開發房地產，以某種思考的方式。

Well, there's some other ways, too. The intangible advantages of that is that when the world knows that we're looking for property, whether it's residential or industrial, it just gives us the ability to cast a wider net. For example, the property that we found at Chelsea where the buildings are going to go, those are 2 smaller properties that we put together. People know that we are active land developers. We've been doing it since the company opened in 1988. So it kind of keeps us out there in the market, and that's another advantage that this brings. But we have been very, very selective on the choosing these properties. And we really don't -- we usually don't even get involved unless we can buy them right, buy them wholesale and not even do that until the entitlements are there.

嗯，還有其他一些方法。這樣做的無形優勢是，當全世界都知道我們正在尋找房產時，無論是住宅還是工業房產，我們就有能力撒下更廣泛的網。例如，我們在切爾西發現的房產將被拆除，這些房產是我們放在一起的兩處較小的房產。人們知道我們是積極的土地開發商。自 1988 年公司成立以來，我們一直在這樣做。因此，這讓我們在市場上保持領先地位，這是這帶來的另一個優勢。但我們在選擇這些房產時非常非常挑剔。我們確實不這樣做——我們通常甚至不會參與其中，除非我們能夠正確購買它們，批發購買它們，甚至在獲得權利之前都不會這樣做。

So the risk is -- obviously is investing capital. But we would -- we obviously don't have any loans, and we certainly don't borrow money on these. But so far, they've been very, very advantageous with IRRs, 20% or above. So -- but we are -- as John said, we're going to take a look at it and see where the money is best spent, if it's spent at all and/or just invested. At least the returns right now on cash investments, I think, are pretty good right now.

所以風險顯然是投資資本。但我們顯然沒有任何貸款，而且我們當然不會藉這些錢。但到目前為止，他們的 IRR 非常非常有利，達到 20% 或以上。所以——但我們是——正如約翰所說，我們將仔細研究一下，看看錢花在哪裡最好，如果花掉了和/或只是投資了。我認為至少目前現金投資的回報相當不錯。

Well, I'll just say keep up the good work. I'll look forward to seeing you guys in October, and I don't know why anybody would give their money to a private equity real estate to open, I can give it to you guys.

好吧，我只想說繼續努力。我期待著十月份見到你們，我不知道為什麼有人會把錢捐給私募股權房地產來開張，我可以給你們。

Tell everyone you know that.

告訴每個你認識的人。

Thank you, Curtis. That's a very kind thing to say.

謝謝你，柯蒂斯。這是非常善意的話。

Thank you.

謝謝。

(Operator Instructions) And we have no further questions in queue. So I would like to turn the floor back over to our speakers for any additional or closing remarks.

（操作員說明）我們隊列中沒有其他問題了。因此，我想請我們的發言人發表補充或結束語。

Thank you all for your maintaining interest in the company. I'd just like to offer a quick reminder. As Curtis referenced, we are holding an Investor Day on October 11, 2023, in Washington, D.C. at our Dock 79 property. The event will feature presentations from our executive management team. And for information on the event into RSVP, please e-mail Investor Day at frpdev.com or check the Investor Relations section of our company's website. Thank you.

感謝大家對公司的持續關注。我只想快速提醒一下。正如 Curtis 提到的，我們將於 2023 年 10 月 11 日在華盛頓特區 79 號碼頭舉辦投資者日活動。該活動將由我們的執行管理團隊進行演講。如需了解有關該活動的信息並回复，請發送電子郵件至frpdev.com 的投資者日或查看我們公司網站的投資者關係部分。謝謝。

Thank you, ladies and gentlemen. This does conclude today's presentation. We appreciate your participation, and you may disconnect at any time.

謝謝你們，女士們、先生們。今天的演講到此結束。我們感謝您的參與，您可以隨時斷開連接。