Granite Real Estate Investment Trust (GRP.U) 2023 Q3 法說會逐字稿

Good morning, and welcome to Granite REIT Third Quarter 2023 Results Conference Call. As a reminder, today's call is being recorded. Speaking to you on the call this morning is Kevan Gorrie, President and Chief Executive Officer; and Teresa Neto, Chief Financial Officer.

早安，歡迎參加 Granite REIT 2023 年第三季業績電話會議。提醒一下，今天的通話正在錄音。今天早上在電話中與您交談的是總裁兼首席執行官凱文·戈里 (Kevan Gorrie)；和財務長特蕾莎·內托。

I will now turn the call over now to Teresa Neto to go over certain advisories. Please go right ahead.

我現在將把電話轉給特雷莎·內托，以聽取某些建議。請往前走。

Good morning, everyone. Before we begin today's call, I would like to remind you that statements and information made in today's discussion may constitute forward-looking statements and forward-looking information, including, but not limited to, expectations regarding future earnings and capital expenditures and that actual results could differ materially from any conclusion, forecast or projection. These statements and information are based on certain material facts or assumptions, reflect management's current expectations and are subject to known and unknown risks and uncertainties.

大家，早安。在我們開始今天的電話會議之前，我想提醒您，今天討論中的陳述和信息可能構成前瞻性陳述和前瞻性信息，包括但不限於對未來收益和資本支出的預期以及實際結果可能與任何結論、預測或預期有重大差異。這些陳述和資訊是基於某些重大事實或假設，反映了管理層當前的預期，並受到已知和未知的風險和不確定性的影響。

These risks and uncertainties are discussed in Granite's materials filed with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission from time to time, including the Risk Factors section of the Annual Information Form for 2022 filed on March 8, 2023.

Granite 不時向加拿大證券管理局和美國證券交易委員會提交的資料中討論了這些風險和不確定性，包括 2023 年 3 月 8 日提交的 2022 年年度資訊表的風險因素部分。

Readers are cautioned not to place undue reliance on any of these forward-looking statements and forward-looking information. The REIT reviews its key assumptions regularly and may change its outlook on a going forward basis if necessary. Granite undertakes no intention or obligation to update or revise its key assumptions, any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

請讀者不要過度依賴任何這些前瞻性陳述和前瞻性資訊。 REIT 定期審查其關鍵假設，並可能在必要時改變未來的前景。 Granite 無意或沒有義務更新或修改其關鍵假設、任何前瞻性陳述或前瞻性訊息，無論是由於新資訊、未來事件或其他原因，除非法律要求。

In addition, the remarks this morning may include financial terms and measures that do not have standardized meaning under International Financial Reporting Standards. Please refer to the condensed combined unaudited financial results and management's discussion and analysis for the 3- and 9-month periods ended September 30, 2023, for Granite Real Estate Investment Trust and Granite REIT Inc. and other materials filed with the Canadian Securities Administrators and U.S. Securities and Exchange Commission from time to time for additional relevant information.

此外，今天上午的言論可能包括國際財務報告準則下沒有標準化含義的財務術語和措施。請參閱截至2023 年9 月30 日的3 個月和9 個月期間Granite 房地產投資信託公司和Granite REIT Inc. 的簡明合併未經審計財務業績以及管理層的討論和分析，以及向加拿大證券管理局提交的其他資料。美國證券交易委員會不時取得更多相關資訊。

As usual, I will commence the call with financial highlights, and then Kevan will follow with the operational update. Granite posted Q3 2023 results ahead of Q2 and in line with expectations, supported by strong NOI growth, high interest income and lower G&A expenses. FFO per unit in Q3 was $1.24, representing a $0.03 or 2.5% increase from Q2 '23 and a 14.8% increase relative to the same quarter in the prior year.

像往常一樣，我將在電話會議開始時介紹財務要點，然後凱文將介紹最新的營運情況。 Granite 在 NOI 強勁成長、高利息收入和較低的一般管理費用的支持下，提前於第二季公佈了 2023 年第三季業績，且符合預期。第三季每單位 FFO 為 1.24 美元，比 2023 年第二季成長 0.03 美元，或 2.5%，與去年同期相比成長 14.8%。

The growth in NOI is derived from developments and expansions that came online since the third quarter of '22 and strong same-property NOI growth, enhanced by double-digit leasing spreads in Canada and the U.S. and inflationary increases in Europe, partially offset by the disposition of 2 properties during the second and third quarters of '23 and some new vacancies in North America.

NOI 的成長源自於自 22 年第三季以來上線的開發和擴張，以及加拿大和美國兩位數的租賃利差以及歐洲的通膨增長部分抵消了同物業 NOI 的強勁增長。2023 年第二季和第三季處置了2 處房產，並在北美增加了一些新的職缺。

While foreign exchange was relatively flat overall compared to Q2 in comparison to the prior year, the euro was 11% stronger and the U.S. dollar 3% stronger, resulting in a positive $0.06 impact to FFO per unit.

雖然與去年第二季相比，外匯匯率整體相對持平，但歐元升值 11%，美元升值 3%，對每單位 FFO 產生 0.06 美元的正面影響。

Interest expense was also lower in Q3 '23 relative to Q2 due to the impact of lower interest costs resulting from the refinancing activity completed during the quarter and higher interest income as a result of incremental cash on hand that was invested in high interest income accounts.

23 年第三季的利息支出也低於第二季度，原因是本季完成的再融資活動導致利息成本降低，以及投資於高利息收入帳戶的手頭現金增加導致利息收入增加。

In addition, due to the timing of certain activities, FFO-related G&A expenses were approximately $0.2 million lower than Q2.

此外，由於某些活動的時間安排，與 FFO 相關的一般管理費用比第二季減少了約 20 萬美元。

Granite's AFFO on a per unit basis in Q3 '23 was $1.09, which is flat relative to Q2 and $0.12 higher relative to the same quarter last year, with the variances mostly tied to FFO growth, offset by higher capital expenditures, leasing costs and tenant allowances incurred due to timing of leasing turnover and seasonality.

Granite 在23 年第三季的每單位AFFO 為1.09 美元，與第二季持平，與去年同期相比上漲0.12 美元，差異主要與FFO 成長有關，但被較高的資本支出、租賃成本和租戶所抵銷因租賃週轉時間和季節性而產生的津貼。

AFFO-related capital expenditures, leasing costs and tenant allowances incurred in the quarter totaled $6.7 million, which is an increase of $2.2 million and $0.1 million over Q2 and the prior year quarter, respectively.

本季與 AFFO 相關的資本支出、租賃成本和租戶津貼總計 670 萬美元，比第二季和去年同期分別增加 220 萬美元和 10 萬美元。

For the fourth quarter of '23, we are estimating AFFO-related maintenance capital expenditures and leasing costs of approximately $7 million to $10 million for approximately $20 million to $23 million for the year. Looking out to 2024, we expect maintenance CapEx, leasing costs and tenant allowances to remain in line with 2023 levels in and around $25 million for the year.

對於 23 年第四季度，我們估計 AFFO 相關的維護資本支出和租賃成本約為 700 萬至 1000 萬美元，全年約為 2000 萬至 2300 萬美元。展望 2024 年，我們預計維護資本支出、租賃成本和租戶津貼將與 2023 年的水準保持一致，約為 2,500 萬美元。

Same-property NOI for Q3 2023 was very strong relative to the same quarter last year, increasing 7% on a constant currency basis and up 12.2% when foreign currency effects are included. Same-property NOI growth was driven primarily by higher than previous year's CPI adjustments, positive leasing spreads, contractual rent increases across all of Granite's regions, lease renewals in the U.S. and Canada, and it includes the impact of completed expansions in Indiana and completed developments in Fort Worth, Texas and Altbach, Germany, which had free rent periods and vacancy in the prior year, partially offset by a free rent period in the U.S. related to a lease renewal and vacancy at certain properties in the U.S. and Canada.

2023 年第三季的同物業 NOI 與去年同期相比非常強勁，以固定匯率計算成長 7%，考慮外幣影響則成長 12.2%。同物業NOI 成長主要由高於去年的CPI 調整、積極的租賃利差、Granite 所有地區的合約租金上漲、美國和加拿大的租約續約推動，其中包括印第安納州已完成的擴張和已完成的開發項目的影響德州沃思堡和德國阿爾特巴赫的房產，上一年有免租期和空置，部分被美國和加拿大某些房產的續租和空置相關的免租期所抵消。

G&A for the quarter was $8.4 million, which was $1.9 million higher than the same quarter last year and $0.5 million lower than Q2. The main variance relative to the prior quarter and Q2 is the change in noncash compensation liabilities, which generated an unfavorable $1.3 million fair value swing relative to the same quarter last year and a favorable $0.3 million fair value swing relative to Q2. These fair value adjustments do not impact FFO or AFFO metrics.

本季的一般管理費用為 840 萬美元，比去年同期增加 190 萬美元，比第二季減少 50 萬美元。與上一季和第二季相比的主要差異是非現金薪酬負債的變化，與去年同期相比產生了130 萬美元的不利公允價值波動，與第二季相比產生了30 萬美元的有利公允價值波動。這些公允價值調整不會影響 FFO 或 AFFO 指標。

Stripping out these fair value adjustments, as mentioned earlier, G&A expenses that impact FFO and AFFO were approximately $0.2 million lower than Q2, which is mostly related to timing of professional fees and travel expenses.

如前所述，剔除這些公允價值調整後，影響 FFO 和 AFFO 的一般管理費用比第二季低約 20 萬美元，這主要與專業費用和差旅費用的時間安排有關。

For the fourth quarter of '23, we expect G&A expenses to come in at approximately $9 million to $9.5 million or roughly 7.5% of revenue, excluding any amount for fair value adjustments related to noncash compensation liabilities. Looking out to '24. For G&A expenses, we expect a run rate of approximately $9.5 million to $10 million per quarter.

對於 2023 年第四季度，我們預計一般管理費用約為 900 萬至 950 萬美元，約佔收入的 7.5%，不包括與非現金補償負債相關的任何公允價值調整金額。展望'24。對於一般管理費用，我們預計每季的運行費用約為 950 萬美元至 1000 萬美元。

On income tax, Q3 2023 current income tax was $2.1 million, which is $0.2 million higher than prior year and flat as compared to Q2. The movement in current tax relative to Q3 2022 is mostly attributable to the strengthening of the euro relative to Canadian dollar as all of Granite's current income tax is generated from its European region, as well as slightly higher taxes in the Netherlands due to depreciation limitations on a couple of assets. For the fourth quarter of 2023, we estimate current tax to remain flat relative to Q2, assuming no significant change in the euro FX rate.

在所得稅方面，2023 年第三季當期所得稅為 210 萬美元，比上年增加 20 萬美元，與第二季持平。當前稅收相對於 2022 年第三季的變動主要歸因於歐元相對於加元的走強，因為 Granite 目前的所有所得稅均來自其歐洲地區，以及荷蘭由於折舊限製而徵收的稅收略高。一些資產。假設歐元匯率沒有重大變化，我們預計 2023 年第四季當前稅收將與第二季持平。

As with the past few years, Granite has the potential to recognize the reversal of tax provisions in Q4 relating to tax positions taken on taxation years, which will go statute-barred, totaling approximately $1.8 million. However, we cannot assess whether these reversals can be realized until after year-end.

與過去幾年一樣，Granite 有可能在第四季度承認與納稅年度的稅務狀況相關的稅收撥備的撤銷，這些撥備將超過法定時效，總計約 180 萬美元。然而，我們無法評估這些逆轉是否能在年底後實現。

For 2024, we are expecting current income taxes to increase to approximately $2.4 million per quarter as a direct result of higher revenues and the burn-off of TI amortization expenses in Austria related to the Graz lease renewal commencing February 1, 2024, increasing taxable income in that region.

到2024 年，我們預計當前所得稅將增加至每季約240 萬美元，這是收入增加以及2024 年2 月1 日開始的格拉茨續租相關的奧地利TI 攤銷費用消耗的直接結果，從而增加了應稅收入在那個地區。

Interest expense was lower in Q3 2023 relative to Q2 by $0.4 million as a result of lower interest expense resulting from the refinancing of the high-interest construction loan in Houston in June 2023 with lower interest cost draw from the credit facility and then was further improved by the EUR 70 million term loan that closed September 7, which resulted in the repayment of the credit facility with lower-cost debt at an effective rate of 4.3325%.

2023 年第三季的利息支出較第二季減少了 40 萬美元，原因是 2023 年 6 月休士頓高息建築貸款再融資導致利息支出降低，信貸安排中提取的利息成本降低，隨後進一步改善9 月7 日結束的7000 萬歐元定期貸款，導致以4.3325% 的有效利率以較低成本債務償還信貸安排。

Post the quarter end, on October 12, Granite completed a $400 million green bond and concurrently entered into a cross-currency interest rate swap exchange in the Canadian dollar-denominated principal and interest payments for euro-denominated payments, resulting in an effective fixed interest rate of 4.9285% for the 5.5-year term of these 2029 debentures.

季末後，即10 月12 日，Granite 完成了4 億美元的綠色債券，同時以加元計價的本金和利息支付與歐元計價的支付進行了跨貨幣利率掉期交易，從而產生了有效的固定利率這些 2029 年債券的 5.5 年期利率為 4.9285%。

The net proceeds from the offering will be used to repay Granite's 2023 debentures with a principal outstanding of $400 million due on November 30, 2023. Prior to that repayment of these 2023 debentures, Granite is earning interest on the net proceeds from these '29 debentures at approximately 5% to 5.5%, which will be reflected in interest income in the fourth quarter.

此次發行的淨收益將用於償還Granite 的2023 年債券，未償本金為4 億美元，將於2023 年11 月30 日到期。在償還這些2023 年債券之前，Granite 將從這些29年債券的淨收益中賺取利息約為5%至5.5%，這將反映在第四季度的利息收入中。

Therefore, for the fourth quarter, we do estimate interest expense to increase to approximately $23 million, partially offset by interest income of approximately $4 million.

因此，我們預計第四季度的利息支出將增加至約 2,300 萬美元，部分被約 400 萬美元的利息收入所抵銷。

Granite's weighted average cost of debt at the end of the quarter was 2.27% and is expected to increase modestly to approximately 2.6% after the repayment of the '23 debentures.

截至本季末，Granite 的加權平均債務成本為 2.27%，預計在償還 23 年債券後將小幅上升至約 2.6%。

For 2024, given that we have no debt maturing until December next year, our interest expense run rate is estimated to drop to approximately $21 million per quarter, which will be offset by some interest income of approximately $0.5 million to $1 million per quarter.

到2024 年，鑑於我們在明年12 月之前沒有到期債務，我們的利息支出運行率預計將下降至每季約2,100 萬美元，這將被每季約50 萬至100 萬美元的利息收入所抵消。

With respect to our 2023 estimates, Granite's guidance to FFO has been updated and narrowed as we approach this final quarter of the year. We estimate FFO per unit within a range of $4.93 to $5 in comparison to previous guidance of $4.90 to $5.05. This represents approximately 11% to 13% increase over 2022.

關於我們 2023 年的預測，隨著今年最後一個季度的臨近，Granite 對 FFO 的指導已更新並縮小範圍。我們估計每單位 FFO 的範圍為 4.93 美元至 5 美元，而先前的指引為 4.90 美元至 5.05 美元。這意味著比 2022 年增長約 11% 至 13%。

For AFFO per unit, our guidance has also been narrowed, estimated at $4.35 to $4.45 in comparison to last quarter's guidance of $4.25 to $4.40, representing an increase of 7% to 10% over '22.

對於每單位 AFFO，我們的指導也有所縮小，估計為 4.35 美元至 4.45 美元，而上季度的指導為 4.25 美元至 4.40 美元，比 22 年增長了 7% 至 10%。

The foreign currency rate driving the high and low ranges have been amended slightly for the fourth quarter. For the high end of the range, we are assuming foreign exchange rates of the Canadian dollar to euro of 1.48 and the Canadian dollar to USD of 1.39. On the low end of the range, we are assuming exchange rates of the Canadian dollar to euro and Canadian dollar to USD of 1.44 and 1.35, respectively, reflective of the current Canadian dollar weakness relative to both currencies.

第四季驅動高點和低點範圍的外幣匯率略有調整。對於該範圍的高端，我們假設加幣兌歐元的匯率為 1.48，加幣兌美元的匯率為 1.39。在該區間的低端，我們假設加幣兌歐元和加幣兌美元的匯率分別為 1.44 和 1.35，反映了目前加幣相對於兩種貨幣的疲軟。

The trust's balance sheet comprising of total assets of $9.2 billion at the end of the quarter was negatively impacted by $53 million in fair value losses on Granite's investment property portfolio in the third quarter, which was offset by $87 million of translation gains on Granite's foreign-based investment properties primarily due to the 2.3% increase in the spot USD exchange rate relative to Q2.

截至本季末，該信託的資產負債表總資產為92 億美元，該信託的資產負債表受到第三季Granite 投資房地產投資組合公允價值損失5,300 萬美元的負面影響，該損失被Granite 海外投資組合的8,700 萬美元換算收益所抵銷。投資性房地產的主要原因是美元即期匯率較第二季上漲 2.3%。

The fair value losses on Granite's investment property portfolio were primarily attributable to the expansion and discount in terminal capitalization rates across selected Granite markets in response to rising interest rates, partially offset by fair market rent increases on multiple properties in the GTA, the U.S., Netherlands and Germany.

Granite 投資物業組合的公允價值損失主要是由於利率上升導致選定 Granite 市場終端資本化率的擴張和折扣，部分被大多倫多地區、美國、荷蘭多處物業的公平市場租金上漲所抵消和德國。

The trust's overall weighted average cap rate of 5.14% on in-place NOI increased 5 points -- 5 basis points from the end of Q2 and has increased a total of 46 basis points since the same quarter of last year.

該信託的就地 NOI 的整體加權平均上限率為 5.14%，較第二季末上升 5 個基點，自去年同季以來總計上升 46 個基點。

Total net leverage as at September 30 was 32%, and net debt to EBITDA was 7.3x, which has improved from Q2 and as a result of same-property NOI growth, as previously mentioned, and the completion and stabilization of the majority of Granite's development properties.

截至9 月30 日，總淨槓桿率為32%，淨債務與EBITDA 之比為7.3 倍，較第二季度有所改善，這是由於如前所述的同物業NOI 增長，以及Granite 大部分項目的完成和穩定開發屬性。

Granite continues to expect its net debt-to-EBITDA to decrease to 7.2x by the end of this year and to improve thereafter into 2024 as the EBITDA from completed developments come online throughout the year.

Granite 繼續預計，到今年年底，其淨債務與 EBITDA 比率將下降至 7.2 倍，並在 2024 年之前有所改善，因為已完成開發項目的 EBITDA 全年都會上線。

The trust's current liquidity is approximately $1.6 billion, representing cash on hand of about $600 million and the undrawn operating line of $997 million. As of today, Granite has no borrowings under the credit facility, and there are $2.9 million in letters of credit outstanding. Granite's increased liquidity position from the end of Q3 is temporarily elevated due to the net proceeds obtained from the '29 debentures at the beginning of October. After repayment of the '23 debentures upon maturity and based on remaining development commitments, Granite estimates that it will end the year with approximately $120 million of cash on hand and no draws on the credit facility for a total liquidity of approximately $1.1 billion.

該信託目前的流動性約為 16 億美元，其中手頭現金約為 6 億美元，未動用經營額度為 9.97 億美元。截至目前，Granite 在信貸安排下沒有借款，未償還信用證為 290 萬美元。由於 10 月初從 29 期債券獲得淨收益，Granite 從第三季末開始增加的流動性部位暫時上升。在償還到期的 23 期債券後，根據剩餘的開發承諾，Granite 預計到年底將擁有約 1.2 億美元的手頭現金，並且不會動用信貸安排，總流動性約為 11 億美元。

I'll now turn over the call to Kevan.

我現在會把電話轉給凱文。

Thanks, Teresa. Certainly, an in-line quarter for us driven by higher NOI and lower net interest expense, as mentioned.

謝謝，特蕾莎。當然，正如前面提到的，我們的季度表現與 NOI 上升和淨利息支出下降有關。

I'll begin with a brief update on our current development projects. Our 410,000 square foot build-to-suit project for Barry Callebaut continues to progress on schedule with substantial completion expected in the first quarter of 2024. Similarly, the 50,000 square foot expansion of our existing property in Ajax is underway with substantial completion also scheduled for the first quarter of next year. As a reminder, these projects are expected to achieve certification in accordance with our published green bond framework.

我將首先簡要介紹我們目前的開發項目。我們為百樂嘉利寶(Barry Callebaut) 建造的410,000 平方英尺定制項目繼續按計劃進行，預計於2024 年第一季基本完工。同樣，我們在阿賈克斯(Ajax) 現有物業的50,000 平方英尺擴建工程正在進行中，也計劃於2024 年第一季基本完工。明年第一季。提醒一下，這些項目預計將根據我們發布的綠色債券框架獲得認證。

In addition to the projects just discussed, we have 160 acres of land remaining for development in Brantford, Houston and Columbus, which could accommodate up to 2.4 million square feet of space once constructed.

除了剛才討論的項目外，我們在布蘭特福德、休斯頓和哥倫布還有 160 英畝的土地可供開發，建成後可容納多達 240 萬平方英尺的空間。

As outlined in our press release and MD&A, the team executed renewals on 3 leases comprising roughly 1.9 million square feet involving 2 maturities in 2024 and one 2026 maturity at an average increase in rental rate of 33%.

正如我們的新聞稿和MD&A 中所述，該團隊對3 份租約進行了續約，面積約190 萬平方英尺，其中2 份租約將於2024 年到期，一份租約於2026 年到期，租金平均上漲33%。

With respect to our 2024 maturities, we have now renewed 7.4 million or 75% of our 9.7 million square feet of maturities at an average increase in rental rate of 14%, with that increase primarily driven by the 10% increase on the Graz renewal. Further, we anticipate achieving roughly a 20% increase in rental rate on the remaining maturities in 2024.

就2024 年到期的公寓而言，我們現已續簽了740 萬平方英尺，佔970 萬平方英尺到期公寓的75%，租金平均上漲14%，這一增長主要是由格拉茨續租10%的上漲推動的。此外，我們預計 2024 年剩餘期限的租金將增加約 20%。

As Teresa mentioned, same-property NOI increased by 7% in the quarter on a constant currency basis within expectations. Same-property NOI was positive across all of our geographies on a constant currency basis, exceeding 6% with the exception of our Austrian portfolio, driven partially by strong renewal spreads in North America, development stabilizations and strong CPI increases year-to-date in Europe, offset by lower occupancy in our U.S. portfolio.

正如 Teresa 所提到的，以固定匯率計算，本季同物業 NOI 成長 7%，符合預期。以固定匯率計算，我們所有地區的相同房產 NOI 均呈正值，除奧地利投資組合外均超過 6%，部分原因是北美強勁的續租利差、發展穩定以及年初至今的 CPI 強勁增長。歐洲，被我們美國投資組合入住率下降所抵銷。

We expect same-property NOI to moderate in Q4, as mentioned, and now project same-property NOI to average in the low to mid-6% range over the 4 quarters in 2023 due to higher vacancy and lower CPI increases in Europe in the fourth quarter versus budget. We will provide specific FFO and same-property NOI guidance on our Q4 call. But for now, we can state that we expect same-property NOI growth to be higher for 2024.

如同前面所提到的，我們預計第四季度相同房產的NOI 將會放緩，並且由於歐洲空置率較高和CPI 增幅較低，目前預計2023 年4 個季度的相同房產NOI 平均將在6% 的低至中水平範圍內。第四季與預算。我們將在第四季度的電話會議上提供具體的 FFO 和同屬性 NOI 指引。但就目前而言，我們預計 2024 年同地產 NOI 成長將會更高。

As you can see from our disclosure, we adjusted cap rates and discount rates nominally in the quarter based on relevant transactional data in the U.S. and the Netherlands. Excluding FX movement, roughly $270 million in negative fair value adjustments associated with terminal cap rate and discount rate adjustments year-to-date has been partially offset by $120 million in gains from a combination of development stabilizations, an increase in value resulting from the long-term renewal of 3 properties in Austria and Germany and an increase in the fair market value of our land for development in Brantford.

從我們的揭露中可以看出，我們根據美國和荷蘭的相關交易數據，名義上調整了本季的上限利率和貼現率。不包括匯率波動，年初至今與終端上限利率和貼現率調整相關的約2.7 億美元的負公允價值調整已被發展穩定組合帶來的1.2 億美元收益部分抵消，這是長期投資帶來的價值增加. - 對奧地利和德國的 3 處房產進行定期更新，並增加我們在布蘭特福德開發的土地的公平市場價值。

Looking forward, we will continue to monitor comparable transactions in our markets, and further adjustments may be appropriate. But at this point, it is difficult to estimate the direction of asset pricing. Recent optimism among investors that the pause in central bank increases will be sustained and reductions potentially on the horizon may incent buyers to return to the market, but liquidity issues and limited access to credit could impair buyer prospects and asset values in the short term.

展望未來，我們將繼續監控市場的可比交易，並可能適當地進行進一步調整。但目前還很難判斷資產定價的走向。投資者近期樂觀地認為，央行升息的暫停將持續下去，並且可能會出現降息，這可能會促使買家重返市場，但流動性問題和信貸獲取機會有限可能會在短期內損害買家前景和資產價值。

As for a general market update, leasing activity continued to slow in the third quarter as higher interest rates and economic uncertainty continued to impact tenant activity broadly across the real estate sector.

就整體市場更新而言，由於利率上升和經濟不確定性繼續廣泛影響整個房地產行業的租戶活動，第三季租賃活動繼續放緩。

On a comparative basis, our markets once again represented 8 of the top 9 markets in the U.S. for net absorption, totaling 22 million square feet for the quarter and over 100 million square feet year-to-date, led by Dallas, Chicago and Houston. So despite the increase in vacancy, the data illustrates that the logistics and manufacturing sectors continue to invest and grow in our key markets due to a combination of a strong business climate and labor force, critical logistics infrastructure and proximity and connectivity with a large percentage of the U.S. population. These are characteristics that we believe will continue to attract tenants and drive growth over the long term.

相較之下，我們的市場再次代表了美國淨吸收量排名前 9 的市場中的 8 個，本季總計 2,200 萬平方英尺，年初至今超過 1 億平方英尺，其中以達拉斯、芝加哥和休士頓為首。因此，儘管職缺增加，但數據表明，由於強大的商業環境和勞動力、關鍵的物流基礎設施以及與大部分城市的鄰近和連通性，物流和製造業繼續在我們的主要市場進行投資和成長。美國人口。我們相信這些特徵將繼續吸引租戶並推動長期成長。

As for rents, the data suggests that market rents increased roughly 3% on average over the second quarter across our U.S. markets, led by the 78/81 Corridor, Savannah and Louisville all in double digits. Only Indianapolis posted a slight decline in rents at negative 1.6% quarter-over-quarter. Year-over-year rent growth across our U.S. markets averaged roughly 15%, similar to the GTA.

至於租金，數據顯示，第二季美國市場的市場租金平均上漲約 3%，其中 78/81 走廊、薩凡納和路易斯維爾漲幅最大，都達到兩位數。只有印第安納波利斯的租金環比小幅下降 1.6%。我們美國市場的平均租金年增率約為 15%，與大多倫多地區類似。

Although Q3 broker data for our European markets is not yet available, our records of comparable transactions indicate year-over-year growth in the Netherlands and Germany coming in at roughly 7% and 12%, respectively.

儘管歐洲市場第三季經紀商數據尚未公佈，但我們的可比交易記錄表明，荷蘭和德國的同比增長分別約為 7% 和 12%。

So although new supply continues to outpace demand in the short term, new starts, for example, in the U.S., are currently at multiyear lows and, when combined with a significant increase in the cost of development for new products, should support rent stabilization and potential rent growth in the latter half of 2024 and into 2025.

因此，儘管短期內新增供應持續超過需求，但新開工率（例如在美國）目前處於多年來的低點，再加上新產品開發成本的大幅增加，應會支持租金穩定和2024 年下半年和2025 年的潛在租金成長。

I will provide a more fulsome update on our ESG program in the fourth quarter, but I did want to mention that we were recently notified that we received the top ranking from GRESB among the listed North American peer group and further received a score of 94% for public disclosure, ranking us second in the U.S. industrial real estate group, both excellent results.

我將在第四季度提供有關我們的ESG 計劃的更全面的更新，但我確實想提一下，我們最近收到通知，我們在GRESB 的北美上市同行組中獲得了最高排名，並進一步獲得了94 % 的分數公開揭露，我們在美國工業地產集團中排名第二，成績優異。

In closing, results were in line with expectations. NOI continued to increase, as Teresa mentioned, despite lower occupancy. And we are maintaining our FFO and AFFO guidance for 2023, which has remained unchanged from our initial guidance provided on our Q4 call in March.

最後，結果符合預期。正如 Teresa 所提到的，儘管入住率較低，但 NOI 繼續增加。我們維持 2023 年 FFO 和 AFFO 指引，與 3 月份第四季電話會議上提供的初步指引保持不變。

Our upcoming $400 million maturity on November 30 has been fully refinanced at a very competitive rate of 4.93% for 5.5 years. And our liquidity position remains very strong at almost $1.2 billion post-repayment of the bond in cash and available credit.

我們即將於 11 月 30 日到期的 4 億美元資金已以極具競爭力的 4.93% 利率進行了為期 5.5 年的全面再融資。在以現金和可用信貸償還債券後，我們的流動性狀況仍然非常強勁，接近 12 億美元。

In addition, we announced our 13th consecutive annual distribution increase to $3.30, which continues to reflect our philosophy of delivering consistent distribution growth for our unitholders while maintaining conservative capital ratios and sufficient free cash flow with which to reinvest in the business.

此外，我們宣布連續第 13 次年度分配增加至 3.30 美元，這繼續反映了我們為單位持有人提供持續分配成長的理念，同時保持保守的資本比率和足夠的自由現金流以再投資於業務。

I also wanted to mention that we are in the process of renewing our base shelf prospectus, which expired this month. This is simply a formality and is being renewed in normal course to facilitate any potential actions we may contemplate over the next 25 months.

我還想提一下，我們正在更新我們的基本貨架招股說明書，該招股說明書已於本月到期。這只是一種形式，正在按正常程序更新，以促進我們在未來 25 個月內可能考慮的任何潛在行動。

Addressing our current leasing availabilities and 2024 maturities and preserving capital for future opportunities remain our highest priorities. And we believe we are very well positioned to deliver industry-leading NOI, FFO and AFFO growth once again in 2024.

解決我們目前的租賃可用性和 2024 年到期問題，並為未來的機會保留資本仍然是我們的首要任務。我們相信，我們完全有能力在 2024 年再次實現業界領先的 NOI、FFO 和 AFFO 成長。

And on that, operator, I will open up the floor for any questions.

關於這一點，接線員，我將歡迎大家提出任何問題。

(Operator Instructions) And we'll go to our first question on the line from Brad Sturges with Raymond James.

（操作員說明）我們將回答 Brad Sturges 和 Raymond James 提出的第一個問題。

Congrats on the 2024 lease, how much have you already addressed, 75% already, and it sounds like still expecting good uplifts on what's left to do. Just wanted to get a little bit more color on, I guess, a little bit over 2 million square feet left to do. Would that be more back-end weighted to next year?

恭喜 2024 年的租約，您已經解決了多少問題，已經解決了 75%，而且聽起來仍然期待剩下的事情能得到很好的提升。我想，我只是想多塗一點顏色，還剩下 200 萬平方英尺多一點的空間。明年的後端權重會更大嗎？

And then just a little bit more color in terms of what's left to address in terms of where that would be in terms of size of boxes and location?

然後，就剩下要解決的問題，也就是盒子的大小和位置而言，再多一點顏色？

I think there is a couple to do in Toronto, but the bulk of it is in the U.S., and it is back-end loaded. Of that, what did you say, 2.4 million square feet, I think over 1 million is actually expiring on December 31, 2024. So it is back-end loaded for the year. I think there are a few in the second quarter, but the bulk is the second half of the year towards the end.

我認為多倫多有幾件事可以做，但大部分是在美國，而且是後端加載的。其中，你說什麼，240萬平方英尺，我認為超過100萬平方英尺實際上將於2024年12月31日到期。所以今年是後端加載的。我認為第二季度有一些，但大部分是下半年年底。

And that -- the U.S. that are expiring December 31, is that broken down by a couple of different locations? Or is that weighted towards one specific property...

美國的有效期將於 12 月 31 日到期，是否按幾個不同的地點進行細分？或者是偏重於某一特定屬性......

I think it's in a few, but I think the bulk of it is in Memphis and in Indianapolis.

我認為只有少數，但我認為大部分是在孟菲斯和印第安納波利斯。

Okay. That's helpful. Just in terms of what's left to do this year, I think it's less than 400,000 square feet. Just any update on what you're expecting for the remaining '23 maturities?

好的。這很有幫助。僅就今年剩下要做的事情而言，我認為還不到40萬平方英尺。您對 23 年剩餘期限的預期有何更新？

I think the maturities in 2023 have been spoken for, yes. There's nothing to report on those.

我認為 2023 年的到期日已經被討論過了，是的。沒有什麼好報告的。

Okay. Just based on your comment around leasing velocity has slowed down a little bit, I guess it depends on the type of size and location. But any general comments on where you're expecting occupancy to trend the next couple of quarters?

好的。根據您對租賃速度的評論，我想這取決於規模和位置的類型。但對於您預計未來幾季的入住率趨勢有何整體評論？

Well, I think right now, we're in advanced discussions on about 2 million feet of both new leasing and 2024 maturity. So the activity is strong, but it is taking us longer. So I think we'll have a better update on the next call in March, but we're expecting occupancy to bounce back quite strongly in 2024 just based on the activity that we're seeing and the strength in those parts of the markets that we expect to see in 2024.

嗯，我想現在我們正在就約 200 萬英尺的新租賃和 2024 年到期進行深入討論。所以活動很強烈，但我們需要更長的時間。因此，我認為我們將在 3 月份的下一次電話會議上獲得更好的更新信息，但根據我們所看到的活動以及市場中那些部分的實力，我們預計 2024 年入住率將強勁反彈。我們預計將在2024 年看到。

We'll go to our next question on the line from Michael Markidis with BMO Capital Markets.

我們將回答 BMO 資本市場部的 Michael Markidis 提出的下一個問題。

Kevan, just on the 2024 maturities in the U.S., are you able to give us what the expected increase would be just for that bucket?

Kevan，關於美國 2024 年的到期日，您能否告訴我們該桶的預期增長是多少？

Yes, it's about 20%, Mike.

是的，大約是 20%，麥克。

20% for that. Okay. Perfect.

20%為此。好的。完美的。

The maturities we've done are 14%, as I mentioned. And that was driven a lot by the 10% increase at Graz down to 14% and 20% on the remaining.

正如我所提到的，我們的期限是 14%。格拉茨的成長率從 10% 下降到 14%，其餘地區則下降到 20%，這在很大程度上推動了這一趨勢。

Okay. Good segue actually for me, modeling question here, Teresa. With the 10% increase, that's cash on cash from Graz, but is the FFO impact when that commences going to be materially different just because of noncash items? Or how should we be thinking of that?

好的。實際上對我來說很好，這裡是建模問題，Teresa。增加 10% 後，這就是來自格拉茨的現金現金，但是當這種增加開始時，FFO 的影響是否會因為非現金項目而產生重大不同？或者我們該如何思考這一點？

No, that's pure cash. That 10% is all revenue, so -- yes.

不，那是純現金。這 10% 是全部收入，所以——是的。

Well, because of the TIs, is there any...

嗯，因為 TI，有沒有...

There's no TI, so -- but in the previous -- last 10 years, there was a TI, but that goes away because we didn't have one for this renewal. So that 10% is a pure cash lift.

沒有 TI，所以 - 但在過去 - 過去 10 年裡，有過 TI，但它消失了，因為我們沒有用於這次續訂的 TI。所以這 10% 是純粹的現金提升。

And from an FFO perspective, would it be greater or less?

從 FFO 的角度來看，它會更大還是更小？

It would be greater.

那就更大了。

It would be greater. Okay.

那就更大了。好的。

Did I misunderstand that? You're asking about FFO...

我誤解了嗎？你問的是FFO...

TI burning off, is FFO higher...

TI 燒毀，FFO 更高嗎...

Oh, yes, sorry. Is that what you're asking -- FFO, yes, it is higher by both the TI that had burned off and the 10% increase. And actually, it's close to, I believe, 8 million for the year.

哦，是的，抱歉。這就是您要問的嗎？FFO，是的，由於已消耗的 TI 和 10% 的增長，它都更高。事實上，我相信今年的銷量接近 800 萬。

From an FFO perspective?

從FFO的角度來看？

Yes. Yes, FFO. That's right. That's right.

是的。是的，FFO。這是正確的。這是正確的。

That is very helpful. Okay. And then last one for me before I turn it back. Just on the CapEx from leasing positive, if I heard you guys correctly, I think $20 million to $23 million is this year's forecast and a similar amount next year. If you think about that, like how much of that amount for next year is expected to be from new leasing as opposed to just dealing with 2024 maturities?

這非常有幫助。好的。然後在我把它轉回去之前給我最後一張。僅就租賃積極的資本支出而言，如果我沒聽錯的話，我認為今年的預測為 2000 萬至 2300 萬美元，明年的金額也類似。如果您考慮這一點，那麼明年的金額中有多少預計將來自新租賃，而不是僅僅處理 2024 年到期的問題？

I think no, the new leasing actually -- so any of the new leasing related to the development, that wouldn't be part of the AFFO CapEx. I'd say a good majority of that $25 million is related to maintenance CapEx in this regard.

我認為不，實際上是新的租賃 - 因此任何與開發相關的新租賃都不會成為 AFFO 資本支出的一部分。我想說，這 2500 萬美元中的大部分與這方面的維護資本支出有關。

Yes, I think it's roughly half.

是的，我認為大約是一半。

About half, right? And then half is for just renewal leasing of existing properties.

大約一半吧？一半用於現有房產的續租。

Got it. Okay. So it's not that your TIs are going higher necessarily because your -- Graz is -- your leases maturing next year are actually slightly higher, but Graz doesn't have TI. So it's not that your TIs are going up on a per square foot basis. Your maintenance CapEx is going up. Is that how we should think about that?

知道了。好的。因此，並不是說您的 TI 會更高，因為您的——格拉茨——明年到期的租約實際上會略高，但格拉茨沒有 TI。因此，並不是說您的 TI 會以每平方英尺為單位上漲。您的維護資本支出正在增加。我們該這樣思考嗎？

That's right, yes.

沒錯，是的。

It's a fair comment.

這是一個公平的評論。

We'll go to our next question on the line. It is from Himanshu Gupta with Scotiabank.

我們將繼續討論下一個問題。這是由豐業銀行 (Scotiabank) 的 Himanshu Gupta 發來的。

Just on the leasing activity in the quarter, pretty strong. If I look at the U.S., 900,000 square feet done at, I think, 40%-plus spread. Can you talk which market it was done?

僅就本季的租賃活動而言，相當強勁。如果我看美國，我認為 90 萬平方英尺的面積已達到 40% 以上。能說說是在哪個市場做的嗎？

Of the 1.9 million, the 2026 -- sorry, the 2024 is -- what was it?

在這 190 萬人中，2026 年——抱歉，2024 年是——那是什麼？

Cincinnati, Columbus and Memphis.

辛辛那提、哥倫布和孟菲斯。

Yes, Cincinnati, Columbus and Memphis.

是的，辛辛那提、哥倫布和孟菲斯。

Okay. And all these 3 were 2024 lease expiries, right?

好的。這 3 個租約將於 2024 年到期，對嗎？

No, 2 were '24 and one was actually a 2026, but there will be an increase in rents beginning in 2024. So that was an early renewal.

不，其中 2 個是 24 年的，一個實際上是 2026 年的，但從 2024 年開始租金將會上漲。所以這是提前續約。

Okay. And Kevan, did the tenant approach you or did you approach for those early renewals for the next year?

好的。凱文（Kevan），租戶是否聯繫過您，或者您是否聯繫過以爭取明年的提前續約？

I think the 2026 was incoming. They came into us. The 2024s, it was dialogue from the team.

我認為 2026 年即將到來。他們進入了我們。 2024年代，是團隊的對話。

Okay. Fair enough. And then in terms of those lease-up on properties which you're working on, how would you rank them in terms of, who will -- which ones will get done first between like Nashville, Indianapolis and Louisville?

好的。很公平。然後，就您正在開發的房產的租賃而言，您將如何對它們進行排名，誰會——納什維爾、印第安納波利斯和路易斯維爾等哪些項目將首先完成？

I think it's really hard to say at this point. I don't think I really have an answer. I think right now, we've had activity -- and I don't want to basically say to the market which properties we're effectively in advanced discussions on for competitive reasons. But we've been active in both -- in all of Nashville, Louisville and Indianapolis. At this point, I do have a feeling which ones will come first, but I don't want to say.

我覺得現在真的很難說。我想我真的沒有答案。我認為現在我們已經開展了一些活動，而且我基本上不想向市場透露出於競爭原因我們正在對哪些資產進行有效的高級討論。但我們在納許維爾、路易斯維爾和印第安納波利斯這兩個地區都非常活躍。在這一點上，我確實有一種感覺，哪一個會先出現，但我不想說。

Okay. Fair enough. And then maybe I can ask that I think there was around 400,000 square feet vacancy this quarter. Which markets, can you identify that?

好的。很公平。然後也許我可以問，我認為本季大約有 40 萬平方英尺的空置面積。您能辨識出哪些市場嗎？

I think KPower was in Memphis, and that was a 3PL where there was still a question. We almost expected them to renew based on the contract that they received. We weren't able to land that contract. Was that Chicago? Oh, the other one was Chicago, yes. The other one was just a tenant that stayed in the space but downsized. And then there was a 3PL in Memphis that were not able to renew their 3PL contract, and so they vacated.

我認為 KPower 在孟菲斯，那是一個 3PL，但仍然存在問題。我們幾乎預計他們會根據收到的合約續約。我們沒能拿到那份合約。那是芝加哥嗎？哦，另一個是芝加哥，是的。另一間只是一名租戶，留在該空間但縮小了面積。然後孟菲斯有一家 3PL 無法續簽 3PL 合同，所以他們離開了。

Got it. Okay. And then maybe the last -- it's a broad question. Obviously, you have a pretty global view, U.S., Canada and Europe. What is your strongest market and what is your weakest market in your portfolio as you look into next year?

知道了。好的。也許最後一個問題是一個廣泛的問題。顯然，你有相當的全球視野，美國、加拿大和歐洲。展望明年，您的投資組合中最強勁的市場和最弱的市場是什麼？

I've been asked this -- maybe you asked it on previous calls. It's difficult to say in Europe because we have not had the leasing activity we've seen. So Europe has been very steady for us. We have been doing some leasing in Utrecht, which is a smaller asset, which has been going well. So I would say that Europe has been very steady for us.

有人問過我這個問題——也許你在之前的電話中問過這個問題。在歐洲很難說，因為我們還沒有看到租賃活動。所以歐洲對我們來說一直都非常穩定。我們一直在烏得勒支進行一些租賃，這是一個規模較小的資產，進展順利。所以我想說歐洲對我們來說非常穩定。

The markets that we're dealing with right now, there has been a very broad moderation in demand across all the markets. So it's very difficult for me to look at North America and say, well, the GTA has been the strongest because it really hasn't in terms of net absorption.

我們現在正在處理的市場，所有市場的需求都出現了非常廣泛的放緩。因此，我很難說，北美地區是最強的，因為就淨吸收量而言，它確實不是最強的。

As I've said on previous calls, I point out the net absorption because I think vacancy and new supply are obviously factors you want to look at. But over the long term, you want to know which markets are attracting investment and are attracting growth. And when we rank our markets year-to-date in terms of net absorption in North America, Toronto is one of the worst, one of the lowest.

正如我在之前的電話會議中所說，我指出了淨吸收量，因為我認為空置率和新增供應量顯然是您想要關注的因素。但從長遠來看，您想知道哪些市場正在吸引投資並正在吸引成長。當我們對北美市場今年迄今為止的淨吸收量進行排名時，多倫多是最糟糕、最低的市場之一。

So where are we seeing the most activity? I think it's been a few of our markets in the U.S., but there hasn't been any standout that has been the strongest. I think the moderation in demand, as I mentioned, has been very broad-based across all of the markets.

那我們在哪裡看到最多的活動呢？我認為這是我們在美國的一些市場，但沒有任何一個表現最強的市場。正如我所提到的，我認為需求的放緩在所有市場上都有廣泛的基礎。

Fair enough. And maybe if you talk about product categories, lots being mentioned about maybe weakness in big bulk versus small bay and mid-bay doing better. Would you agree with that statement? And is that something you're seeing as well?

很公平。也許如果你談論產品類別，很多人都會提到大批量的弱點，而小灣和中灣的表現可能會更好。你同意這個說法嗎？這也是你所看到的嗎？

I think that that's more market-specific. I mean I think it depends on the market. If you look at some of our markets in the U.S. some of the assets that have come in, 800,000-foot plus have done very well. The 3 to 7 has been quiet, but that can really move from quarter-to-quarter. So it depends very much on the market that you're in.

我認為這更具市場針對性。我的意思是我認為這取決於市場。如果你看看我們在美國的一些市場，你會發現一些已經進入的資產，超過 800,000 英尺，表現非常好。 3 點到 7 點一直很平靜，但每季的情況確實會改變。因此，這在很大程度上取決於您所在的市場。

I think that's -- it's not fair to make that general statement across all the markets. Definitely, as we mentioned, Indianapolis, a market where 700,000 feet has been very strong historically and has seen some recent weakness. But I don't think that that's something that will be sustained over the coming years.

我認為，在所有市場上做出這樣的籠統聲明是不公平的。當然，正如我們所提到的，印第安納波利斯這個 700,000 英尺的市場在歷史上一直非常強勁，但最近卻出現了一些疲軟。但我認為這種情況不會在未來幾年持續下去。

Fair enough. And maybe just last one for Teresa on balance sheet. Is it fair to say your next debt maturity is, I think, coming in December or November of next year? Is it a fair statement?

很公平。也許只是特雷莎資產負債表上的最後一項。我認為您的下一個債務到期日是在明年 12 月或 11 月，這樣說公平嗎？這是一個公平的說法嗎？

It's December 19.

現在是 12 月 19 日。

We'll go to our next question on the line from Frederic Blondeau, Laurentian Bank Securities.

我們將回答勞倫森銀行證券公司 Frederic Blondeau 提出的下一個問題。

I just wanted to discuss capital allocation. Kevan, last time we spoke, you were more into capital preservation mode. I was wondering, what are your views for 2024 on that front?

我只是想討論一下資本配置。 Kevan，上次我們談話時，您更傾向於資本保值模式。我想知道，您對 2024 年在這方面有何看法？

I think it remains the same, Fred. We had talked about taking advantage of any market dislocation or distress. And it's hard to see how exactly that goes. As I mentioned, I think there's a little more optimism about the direction of interest rates, but there's also much tighter access to credit. And I think that, that, if anything, will impact smaller developers more than anyone else because frankly, looking at stabilized industrial assets, they've actually held up pretty well their value. So we don't see a lot of loans being necessarily underwater like you may see in the office sector.

我認為情況還是一樣，弗雷德。我們曾討論過如何利用任何市場混亂或困境。很難看出具體情況如何。正如我所提到的，我認為人們對利率方向更加樂觀，但信貸管道也更加收緊。我認為，如果有的話，這對小型開發商的影響將比其他任何人都大，因為坦白說，從穩定的工業資產來看，它們實際上已經很好地保持了其價值。因此，我們並不認為有許多貸款像辦公部門一樣陷入水下。

So we're willing to be patient and wait for that. Where our price is right now, I think the NCIB is completely on the table for us. It's something that we'll consider in the short term. So we think that -- but we have to also balance that with, I think, our desire to maintain our capital for future use at some point in 2024.

所以我們願意耐心等待。就我們目前的價格而言，我認為 NCIB 完全適合我們。這是我們短期內會考慮的事情。所以我們認為，但我認為，我們還必須平衡這一點和我們希望在 2024 年的某個時候保留我們的資本以供未來使用的願望。

We'll go to our next question on the line. It is from Kyle Stanley with Desjardins Capital Markets.

我們將繼續討論下一個問題。這是來自 Desjardins Capital Markets 的 Kyle Stanley 的報導。

Kevan, just on your comment about same-property NOI growth being higher in 2024 versus 2023, would that include lease-up of the development properties? I'm thinking about Indy specifically. And if so, if you were to exclude that, what kind of impact would that have on your same-property NOI outlook for the existing portfolio, I guess?

Kevan，就您關於 2024 年同地產 NOI 成長高於 2023 年的評論而言，這是否包括開發地產的租賃？我特別想到印地。如果是這樣，如果您排除這一點，我想這會對您現有投資組合的相同財產 NOI 前景產生什麼樣的影響？

It's tough to say off the top of my head, but it is definitely a part of our same-property NOI projections for next year. And I think one of the things I would point out is we were very -- the CPI increases that we had in Europe late last year and into this year in 2023 were very strong. It's hard to say where those will be.

很難憑空說出來，但這絕對是我們明年同地產 NOI 預測的一部分。我想我要指出的一件事是，我們去年年底和 2023 年今年歐洲的 CPI 成長非常強勁。很難說這些會在哪裡。

But we do have some rent lifts that we've secured for next year that will be a strong driver of growth. But of course, we think that the lease-up of the development properties will also be a part of that growth for next year.

但我們確實為明年爭取了一些租金上調，這將成為成長的強勁推動力。當然，我們認為開發物業的租賃也將成為明年成長的一部分。

Okay. Obviously, a small sample size, but the leasing that you did in the quarter in the GTA, 206% spread, can you just talk about the dynamics of that lease and how the tenant accepted that significant increase?

好的。顯然，樣本量很小，但是您在大多倫多地區本季進行的租賃，擴展率為 206%，您能否談談該租賃的動態以及租戶如何接受這種大幅增長？

Well, I think they were coming off a $7 rent. And I think our average rents in the GTA off the top of my head is around $10, so well below market. But we do have a number of leases, frankly, coming up over the next couple of years that are in that sort of $7 to $8 range.

嗯，我想他們的租金是 7 美元。我認為我們在 GTA 的平均租金約為 10 美元，遠低於市場水平。但坦白說，我們確實有一些租賃合同，在未來幾年內將出現，價格在 7 至 8 美元之間。

Okay. No, that makes sense. Last one for me. Any other vacancies that you're aware of maybe in Q4 or into 2024 at this point?

好的。不，這是有道理的。最後一張給我。目前您知道第四季或 2024 年還有其他職缺嗎？

No.

不。

We'll go to our next question on the line. It is from Matt Kornack with National Bank of Canada.

我們將繼續討論下一個問題。這是加拿大國家銀行的 Matt Kornack 發來的。

Most of what I was going to ask has been answered. But just quickly, with regards to the same-property NOI growth this quarter, can you speak to what component of that may have been expansion space? And then maybe secondary to that, with regards to straight-line rent, I think that was sequentially down $1 million that adds to cash NOI. But can you give us a sense as to what is the floor level as to how much of that would be kind of free rent periods for existing leasing?

我想問的大部分問題都得到了解答。但很快，關於本季同物業 NOI 的成長，您能否談談其中的哪些部分可能是擴張空間？然後也許是次要的，就直線租金而言，我認為連續下降了 100 萬美元，這增加了現金 NOI。但您能否讓我們了解現有租賃的免租期的最低水準是多少？

So without the expansion on a constant currency basis, it's 6.4%, and it's 11.6% with the FX in there. You're right, straight-line rent dropped. The free rent piece of that was about $400,000 of that $1 million. Yes. So like straight-line rent is going to fall, continue to fall, but I expect it to increase again when we do lease up those developments that recently came online because obviously anticipating some free rent as we lease those up. So at some point in the second quarter, third quarter, you'll see probably a pop-up in straight-line rent.

因此，如果不考慮固定貨幣基礎上的擴張，則為 6.4%，如果考慮到外匯則為 11.6%。你是對的，租金直線下降。其中免費租金部分約為 100 萬美元中的 40 萬美元。是的。因此，就像直線租金將會下降一樣，繼續下降，但我預計當我們出租那些最近上線的開發案時，租金會再次增加，因為顯然我們預計在出租這些開發案時會獲得一些免費租金。因此，在第二季、第三季的某個時刻，您可能會看到直線租金突然出現。

Okay. So we should expect to see, before it would contribute to same-property NOI growth, that will contribute to FFO growth in the form of straight-line rents on...

好的。因此，我們應該期望看到，在它促進同物業 NOI 增長之前，它將以直線租金的形式促進 FFO 增長…

Exactly, yes.

沒錯，是的。

(Operator Instructions) Our next question on the line is from Sam Damiani with TD.

（操作員說明）我們的下一個問題來自 TD 的 Sam Damiani。

First question, just to sort of continue on the balance sheet discussion from earlier. With the rate move over the last 18 months, what would be your sort of updated target leverage range either on a debt-to-assets or debt-to-EBITDA basis going forward versus what it was a couple of years ago?

第一個問題，只是繼續之前的資產負債表討論。隨著過去 18 個月的利率變動，與幾年前相比，未來以債務與資產或債務與 EBITDA 為基礎的更新目標槓桿範圍是多少？

Well, Sam, I think we're kind of operating with like that 32% right now. And I think that like next year, for example, that's kind of what I'm forecasting for the year.

嗯，Sam，我認為我們現在的營運比例是 32%。我認為就像明年一樣，這就是我對今年的預測。

And that's what you're expecting to sort of target going forward?

這就是您期望的未來目標嗎？

Yes, until we see kind of values change a little bit, right? I mean so for now, I mean, it's -- as you know, we used to operate in the high 20s. But it's been a series of fair value losses, and we have increased slightly our debt because we're funding our development program. So on a debt -- sorry, debt to asset value, sorry, debt to asset value, it has creeped up. And I think in that 30% to 32% range is probably normal going forward.

是的，直到我們看到價值觀有一點變化，對嗎？我的意思是現在是這樣，我的意思是，正如你所知，我們過去在 20 多歲的時候經營。但這是一系列公允價值損失，而且我們的債務略有增加，因為我們正在為我們的發展計劃提供資金。因此，就債務而言——抱歉，債務與資產價值之比，抱歉，債務與資產價值之比，它已經悄悄上升。我認為 30% 到 32% 的範圍可能是未來的正常情況。

Okay. And I just see Houston, the acreage there is being sort of moved up into the sort of active development pipeline at least on a preliminary basis. Any updates on tenant discussions there that could drive an actual construction start in that market for Granite?

好的。我剛剛看到休士頓，那裡的土地面積正在被轉移到積極的開發管道中，至少在初步的基礎上是這樣。關於租戶討論的任何更新可能會推動花崗岩市場的實際建設啟動？

Well, there is potential for that, Sam. The reason why we moved both Brantford -- I think the land in Brantford and Houston to PUD, to PUD, is just to facilitate any potential build-to-suit opportunities. So we are servicing and going through the zoning process on that land. So we moved them into PUD.

好吧，山姆，這是有潛力的。我們之所以將布蘭特福德和休士頓的土地都搬到 PUD，只是為了促進任何潛在的客製化機會。因此，我們正在該土地上提供服務並完成分區程序。所以我們將它們轉移到 PUD 中。

No intention or plans to commence construction on a speculative basis, but it does facilitate discussions around build-to-suit opportunities, and we have had discussions in Houston in that regard. But nothing to report at this time, early discussion.

無意或計劃在投機的基礎上開始建設，但它確實促進了圍繞定制機會的討論，我們已經在休斯頓進行了這方面的討論。不過現在沒什麼好報告的，早點討論吧。

Okay. Last question for me. And I know it's been -- we've touched on earlier in the call, but at some level, can you give us any update on the sort of pace or volume of leasing discussions on the vacant spaces that you have in the U.S. that we saw in the tour last month?

好的。對我來說最後一個問題。我知道，我們在電話會議的早些時候已經談過，但在某種程度上，您能否向我們提供有關我們在美國擁有的空置空間的租賃討論的速度或數量的最新信息？上個月的巡演中看到了嗎？

Yes. I mean there has been progress, but again, early days. And as I characterized it previously, we're in advanced discussions on roughly 2 million feet, including some renewals as well. But the bulk of that is new leasing, and hopefully, we'll have deals completed by the end of the year. But at this point, we can't confirm that.

是的。我的意思是已經取得了進展，但還是處於早期階段。正如我之前所描述的那樣，我們正在大約 200 萬英尺的高度上進行深入討論，其中還包括一些續約事宜。但其中大部分是新租賃，希望我們能在今年年底前完成交易。但目前我們還無法確認這一點。

We'll go to our next question on the line from Sumayya Syed with CIBC Capital Markets.

我們將回答 CIBC 資本市場部的 Sumayya Syed 提出的下一個問題。

To follow up a bit more around your development leasing, I'm wondering what's your appetite to doing a more behind approach on some of the new assets and if you'll be seeing more interest in the demise space.

為了進一步了解您的開發租賃，我想知道您對某些新資產採取更落後的方法的興趣是什麼，以及您是否會看到對廢棄空間有更多的興趣。

If you're talking about demising, I think we're always -- as we said, we're always open to that. We've always sort of designed our buildings to accommodate demising. So I would just tell you that on all of our buildings, we have received interest on both -- from both multi-tenant sizes and entire buildings. So it just depends on what deal materializes the fastest for us and what deal makes the most economic sense. So just to confirm, any one of our buildings can be demised. They were designed that way. And it just depends on which tenants steps up first on the best economic terms.

如果你談論的是死亡，我認為我們始終——正如我們所說，我們始終對此持開放態度。我們的建築設計總是為了適應死亡。因此，我只想告訴您，在我們所有的建築物上，我們都收到了對多租戶規模和整個建築物的興趣。因此，這取決於什麼交易對我們來說最快實現以及什麼交易最具有經濟意義。所以為了確認一下，我們的任何一棟建築都可以拆除。它們就是這樣設計的。這僅僅取決於哪些租戶首先以最好的經濟條件介入。

Okay. And you mentioned a bit earlier about the 3PL activity, the one vacancy in the quarter. How much does that reflect broader activity that you're seeing from your existing 3PL tenants? Or was that just more of a one-off?

好的。您之前提到過 3PL 活動，這是本季的一個空缺。這在多大程度上反映了您從現有 3PL 租戶那裡看到的更廣泛的活動？或者這只是一次性的？

Well, I mean it's a $65 million portfolio. This happens. Usually 30% to 40% of industrial portfolios are 3PLs, and a 3PL contract is typically 3 to 5 years. And so this is just normal course of business.

嗯，我的意思是這是一個 6500 萬美元的投資組合。有時候是這樣的。通常 30% 到 40% 的工業組合是 3PL，3PL 合約的期限通常為 3 到 5 年。所以這只是正常的業務流程。

And I will tell you, a lot of the sort of availabilities that we're working on are 3PLs that are looking to expand and have to move out of their existing building to accommodate newer and larger contracts. So these things happen. So I would call it a one-off, but it's just normal course of business for us.

我會告訴你，我們正在開發的許多類型的可用性都是 3PL，它們正在尋求擴張，並且必須搬出現有建築以容納更新和更大的合約。所以這些事情就會發生。所以我認為這是一次性的，但這對我們來說只是正常的業務流程。

And Mr. Gorrie, there are no further questions at this time. I'll turn the call back to you.

戈里先生，目前沒有其他問題了。我會把電話轉回給你。

All right. Thank you, operator. Well, thank you, everyone, for being on the call, and we look forward to speaking to you on our next call in March.

好的。謝謝你，接線生。好的，謝謝大家參加電話會議，我們期待在三月的下一次電話會議上與您交談。

Thank you very much, and thank you, everyone. That does conclude the conference call for today. We thank you for your participation and ask you to disconnect your lines. Have a good rest of the day, everyone.

非常感謝，也謝謝大家。今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。大家今天好好休息。