Granite Real Estate Investment Trust (GRP.U) 2024 Q3 法說會逐字稿

Please stand by your program is about to begin. (Operator Instructions) Good morning. My name is Shelby and I will be your conference operator today. At this time. I would like to welcome everyone to Granite REITs' third-quarter 2024 results conference call. (Operator Instructions) Speaking to you on the call this morning is Kevan Gorrie, President and Chief Executive Officer; and Teresa Neto, Chief Financial Officer.

請稍候，您的節目即將開始。（操作員指示）早安。我叫謝爾比，今天我將擔任你們的會議操作員。此時。我謹歡迎大家參加 Granite REITs 2024 年第三季業績電話會議。（操作員指示）今天早上在電話中與您交談的是總裁兼首席執行官 Kevan Gorrie；和財務長特蕾莎·內托。

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

我現在將把電話轉給特蕾莎·內托，以聽取某些建議。

Thanks operator. 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 and the actual results could differ materially from any conclusion, forecast or projection.

感謝運營商。大家早安。在我們開始今天的電話會議之前，我想提醒大家，今天討論中的陳述和資訊可能構成前瞻性陳述和前瞻性信息，實際結果可能與任何結論、預測或預測存在重大差異。

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 that could cause actual results to differ materially from forward-looking statements or information.

這些陳述和資訊是基於反映管理階層目前預期的某些資料、事實或假設，並受到已知和未知的風險和不確定性的影響，可能導致實際結果與前瞻性陳述或資訊有重大差異。

These risks and uncertainties and material factors and assumptions applied in making forward-looking statements or information are discussed in Granites material filed with the Canadian Securities Administrators and the US Securities and Exchange Commission from time to time including the risk factors section of its annual information form for 2023 and Granite management discussion and analysis for the year ended December '23 -- December 31, 2023 filed on February 28, 2024.

這些風險和不確定性以及用於做出前瞻性陳述或資訊的重大因素和假設在Granites 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進行了討論，包括其年度資訊表的風險因素部分2023年的財務報告以及Granite管理階層於2024年2月28日提交的截至2023年12月23日至2023年12月31日止年度的討論與分析。

So for Q3 Granite posted results ahead of Q2 and in line with management's annual forecast and guidance, largely driven by strong NOI growth. FFO per unit in Q3 was $1.35 representing a $0.03 or 2.3% increase from Q2 and an $0.11 or 8.9% increase relative to the same quarter in the prior year. The growth in NOI this quarter is primarily derived from strong same property NOI growth and hence by triple digit leasing spreads in Canada, double digit leasing spreads in the US.

因此，Granite 在第三季度公佈的業績早於第二季度，並且符合管理層的年度預測和指導，這主要是由強勁的 NOI 成長所推動的。第三季每單位 FFO 為 1.35 美元，比第二季成長 0.03 美元，或 2.3%，與去年同期相比成長 0.11 美元，成長 8.9%。本季 NOI 的成長主要源自於同業 NOI 的強勁成長，因此加拿大的租賃價差為三位數，美國的租賃價差為兩位數。

And the completion of Granite two active expansion projects in Ajax, Ontario and Vert Netherlands with leases commencing in the third quarter, partially offset by a new vacancy in Canada at the end of Q2 and new vacancy in the US during Q3. NOI growth was further enhanced by foreign exchange as the euro was 1.7% stronger, partially offset by the US dollar being 0.3% weaker in comparison to Q2.

Granite 在阿賈克斯、安大略省和荷蘭 Vert 完成了兩個活躍的擴建項目，並於第三季度開始租賃，部分被第二季度末加拿大的新空缺和第三季度美國的新空缺所抵消。外匯進一步推動 NOI 成長，歐元升值 1.7%，但部分被美元較第二季貶值 0.3% 所抵銷。

AFFO per unit in Q3 was 1.22% which is $0.05 higher relative to Q2 and $0.13 higher relative to the same quarter last year, with the variances in Q2, mostly tied to FFO growth and lower capital expenditures and tenant allowances incurred due to timing of leasing turnover, partially offset by higher leasing costs, primarily related to leasing activities including an early lease renewal for a property in the US and increases in straight line rent due to free rent offered on new leases commencing in the third quarter.

第三季每單位 AFFO 為 1.22%，比第二季高出 0.05 美元，比去年同期高出 0.13 美元，第二季的差異主要與 FFO 成長以及因租賃時間而產生的資本支出和租戶津貼減少有關營業額增加，部分被較高的租賃成本所抵消，主要與租賃活動有關，包括美國房產的提前續租，以及由於第三季度開始的新租約提供免費租金而導致的直線租金上漲。

AFFO related capital expenditures, leasing costs and tenant allowances incurred in the quarter totaled $5.2 million which is a decrease of $1.9 million over the second quarter and $1.5 million over the same quarter last year. For the full year of 2024, we are expecting AFFO related capital expenditures to come in approximately $25 million which is a reduction from our estimate last quarter of $28 million.

本季發生的 AFFO 相關資本支出、租賃成本和租戶津貼總計 520 萬美元，比第二季減少 190 萬美元，比去年同期減少 150 萬美元。2024 年全年，我們預計 AFFO 相關資本支出約為 2,500 萬美元，比我們上季度估計的 2,800 萬美元有所減少。

Same property NOI for Q3 was strong relative to the same quarter last year, increasing 6.2% on a constant currency basis and up 8% when foreign currency effects are included. For 2024, we are updating our forecast for constant currency same property NOI based on a four quarter average to come in at approximately 6% which is at the lower end of the forecast range previously provided of 6% to 6.5% as a result of updated vacancy and leasing assumptions and Kevin will provide some further color on his comments.

第三季的同房物業 NOI 較去年同期強勁，以固定匯率計算成長 6.2%，若計入外匯影響則成長 8%。對於 2024 年，我們根據四個季度的平均水平更新了對固定貨幣相同財產 NOI 的預測，約為 6%，這是先前提供的 6% 至 6.5% 預測範圍的下限，因為更新後的結果空置率和租約假設，凱文將進一步闡述他的評論。

G&A for the quarter was $13.2 million which is $4.8 million higher than the same quarter last year and $5.5 million higher than Q2. The main reason for the variance relative to Q2 is $5.6 million of unfavorable fair value variants in noncash compensation liabilities which does not impact our FFO and AFFO metrics. For Q4, we continue to expect G&A expense that impact FFO and AFFO of approximately $10 million or roughly 7% of revenues. Interest expense and interest income for the -- for Q3 remain virtually flat relative to Q2.

本季的一般管理費用為 1,320 萬美元，比去年同期增加 480 萬美元，比第二季增加 550 萬美元。與第二季相比出現差異的主要原因是非現金薪酬負債中 560 萬美元的不利公允價值變體，這不會影響我們的 FFO 和 AFFO 指標。對於第四季度，我們仍然預計影響 FFO 和 AFFO 的一般管理費用約為 1000 萬美元，約佔收入的 7%。第三季的利息支出和利息收入與第二季相比幾乎持平。

Post quarter end on October 4, Granite did complete $800 million of bond offerings in two series being a $250 million, five year bond at a coupon of 3.999% and $550 million, seven year bond at a coupon of 4.348%. The $250 million tranche maturing on October 4 was hedged with a cross currency interest rate swap resulting in an effective fixed rate of 3.494% for the five year term of the bond.

10 月4 日季度結束後，Granite 確實完成了兩個系列的8 億美元債券發行，其中包括2.5 億美元的五年期債券，票面利率為3.999%；以及5.5 億美元的七年期債券，票面利率為4.348%。10 月 4 日到期的 2.5 億美元債券透過交叉貨幣利率互換進行對沖，導致該債券五年期的有效固定利率為 3.494%。

The net proceeds from this offering were used to on October 4 to fully prepay without penalty Granite 2025 term loan with a principal balance of USD400 million which had a maturity date of September 2025. The related interest rate swap was also terminated with a mark to market asset being settled.

此次發行的淨收益已於 10 月 4 日用於全額預付 Granite 2025 年定期貸款，本金餘額為 4 億美元，到期日為 2025 年 9 月。相關利率掉期也被終止，並以市值計價資產結算。

The remaining net proceeds from this offering are being held in short term cash deposits until we fully repay Granite's 2024 term loan with a principal balance outstanding of USD185 million which is maturing on December 19, 2024.

此次發行的剩餘淨收益將以短期現金存款形式持有，直至我們全額償還Granite 的2024 年定期貸款（未償還本金餘額為1.85 億美元），該貸款將於2024 年12 月19 日到期。

As of September 30, and prior to the completion of the refinancing in October, Granite's weighted average cost of debt was 2.6% and weighted average term was 3.1 years. After refinancing, Granite's weighted average cost of debt is now 2.75% and the weighted average debt term to maturity is now extended to 4.6 years.

截至9月30日，在10月再融資完成前，Granite的加權平均債務成本為2.6%，加權平均期限為3.1年。再融資後，Granite 的加權平均債務成本現為 2.75%，加權平均債務到期期限現延長至 4.6 年。

For the fourth quarter, Granite's interest expense is expected to increase to approximately $23.9 million due to the new October 2029 defenders being outstanding at the same time as our USD185 million term loan.

第四季度，Granite 的利息支出預計將增加至約 2,390 萬美元，因為 2029 年 10 月的新後衛尚未償還，同時我們也償還了 1.85 億美元的定期貸款。

However, we expect to fully offset the additional interest expense with interest income as noted earlier. With Granite's next maturity now in September 2026, we expect interest expense to remain stable over the next approximate two years at roughly $23.5 million per quarter borrowing any new transactions. Interest income is expected to decline over the course of 2025, with central banks cutting in all of Granite's jurisdictions.

然而，如前所述，我們預計將用利息收入完全抵銷額外的利息支出。鑑於 Granite 的下一次到期時間為 2026 年 9 月，我們預計未來兩年左右的借入任何新交易的利息支出將保持穩定，約為每季 2,350 萬美元。隨著 Granite 所有轄區央行的降息，利息收入預計將在 2025 年下降。

For income tax Q3, current income tax was $2.7 million which is $0.6 million higher than the prior year and $0.1 million higher as compared to Q2. The movement in current tax relative to the prior year is mostly attributable to increased taxable income in Europe due to rental growth together with the strengthening of the euro relative to the Canadian dollar, as all of Granite's current income tax is generated from its European region. For 2024, we are expecting current income taxes to remain at current levels at approximately $2.7 million per quarter.

第三季的所得稅，當期所得稅為 270 萬美元，比上年增加 60 萬美元，比第二季增加 10 萬美元。當期稅收相對於上一年的變動主要歸因於租金增長以及歐元相對加元走強導致歐洲應稅收入增加，因為 Granite 所有當期所得稅均來自其歐洲地區。到 2024 年，我們預計當前所得稅將保持在每季約 270 萬美元的當前水準。

As in prior years, Granite may realize the credit to a current income taxes of approximately $1.8 million in Q4 due to the reversal of prior year tax provision. However, we cannot confirm the certainty of such credit until December 31 and our guidance does not factor in any tax provision reversals. Regarding guidance, our 2024 estimates for FFO per unit remains unchanged at $5.30 to $5.40 for AFFO per unit.

與往年一樣，由於上一年稅收撥備的逆轉，Granite 可能會在第四季度實現約 180 萬美元的當期所得稅抵免。然而，我們要到 12 月 31 日才能確認此類抵免的確定性，並且我們的指導不考慮任何稅收撥備沖銷。關於指導，我們對 2024 年每單位 FFO 的估計保持不變，為每單位 AFFO 5.30 美元至 5.40 美元。

We are increasing the forecast range by $0.05 on both ends to $4.65 to $4.75 due to the reduced estimate in AFFO related capital expenditures for the year from $28 million to $25 million. Granite has made a small modification to the foreign currency exchange rate assumptions pertaining to the euro for the forecast period October to December '24.

由於本年度與 AFFO 相關的資本支出預估從 2,800 萬美元減少到 2,500 萬美元，我們將兩端的預測範圍提高了 0.05 美元，達到 4.65 美元到 4.75 美元。Granite 對 2024 年 10 月至 12 月預測期間與歐元有關的外幣匯率假設進行了小幅修改。

The high assumption reflects foreign currency exchange rate of 1.5 which was previously 1.48. For the Canadian dollar to Euro and the 1.38 for the Canadian dollar to US dollar exchange rate remains unchanged. On the low end of the range, we continue to assume exchange rates of the Canadian dollar to Euro of 1.43 and the Canadian dollar to US dollar of 1.32 which at this point look unlikely.

高假設反映出外幣匯率為 1.5，此前為 1.48。加幣兌歐元和加幣兌美元匯率維持在1.38不變。在該區間的低端，我們繼續假設加幣兌歐元的匯率為 1.43，加幣兌美元的匯率為 1.32，目前看來不太可能。

Granite's balance sheet comprised of total assets of $9.3 million at the end of the quarter and it was possibly impacted by approximately $42.6 million of fair value gains on Granite's investment property portfolio in the third quarter largely due to a tenant's commitment received in the third quarter for a 2025 lease renewal in Mississauga Ontario. Together with fair market rent increases in select US markets and partially offset by expansion and discounted terminal capitalization rates at select Granite assets in the US.

截至本季末，Granite 的資產負債表由930 萬美元的總資產組成，第三季Granite 投資房地產組合的公允價值收益可能會受到約4,260 萬美元的影響，這主要是由於第三季收到的租戶承諾安大略省密西沙加 2025 年續租。加上部分美國市場的公平市場租金上漲，部分被美國部分 Granite 資產的擴張和終端資本化率折扣所抵銷。

The trust's overall weighted average cap rate of 5.3% on in place NOI decreased six points from the end of Q2 and has increased 13 points since the same quarter last year.

該信託現有 NOI 的整體加權平均上限率為 5.3%，較第二季末下降 6 個百分點，較去年同期上升 13 個百分點。

Total net leverage at the end of the quarter was 32% and net debt to EBITDA was 7 times which is slightly lower relative to Q2 and lower than Q2 -- Q3 as well as a result of NOI growth including the completion and stabilization of the majority of Granite's development properties.

本季末總淨槓桿率為32%，淨負債與EBITDA 比率為7 倍，略低於第二季度，低於第二季至第三季度，也是NOI 成長（包括大部分專案的完成與穩定）的結果Granite 的開發屬性。

The trust's current liquidity is approximately $1.4 billion representing cash on hand of approximately $400 million and the undrawn line of $997 million. As of today, Granite has no borrowings under its credit facility and there are 2.8 million letters of credit outstanding.

該信託目前的流動性約為 14 億美元，其中手頭現金約為 4 億美元，未動用額度為 9.97 億美元。截至目前，Granite 在其信貸安排下沒有任何借款，並且有 280 萬份未償還信用證。

Granite's recent refinancing will have no material impact on its net leverage net debt to EBITDA and liquidity position once the term loan is repaid. On October 1, Granite completed the uncoupling of its stapled unit structure by replacing it with a conventional REIT trust unit structure. We do encourage you to refer to Granite's website under the tax information tab, if you have any questions regarding the tax treatment of this uncoupling event.

一旦償還定期貸款，Granite 最近的再融資將不會對其淨槓桿、淨債務佔 EBITDA 和流動性狀況產生重大影響。10月1日，Granite完成了合訂單元結構的解耦，以傳統的REIT信託單元結構取代。如果您對此脫鉤事件的稅務處理有任何疑問，我們鼓勵您造訪 Granite 網站的稅務資訊標籤。

I'll now turn over the call to Kevin.

我現在將電話轉給凱文。

Thanks Teresa. I'll begin with a few general comments on our results and I'll turn it over to Lorne to provide an update on our development and leasing activity. I will then finish with our outlook for the remainder of the year before taking your questions.

謝謝特蕾莎。我將首先對我們的結果進行一些一般性評論，然後將其轉交給洛恩，以提供有關我們的開發和租賃活動的最新資訊。然後，在回答大家的問題之前，我將結束今年剩餘時間的展望。

As Teresa mentioned, our results for the quarter were once again in line with expectations driven by higher NOI and strong releasing spread. NOI grew by $3.1 million or 2.4% over the second quarter and represented the 13th consecutive quarter of NOI growth. As Teresa also mentioned, we maintain our FFO per unit guidance range for the year and increase slightly our AFFO per unit guidance on lower CapEx than previously forecast.

正如 Teresa 所提到的，我們本季的業績再次符合 NOI 上升和釋放利差強勁推動的預期。NOI 較第二季成長 310 萬美元，即 2.4%，是 NOI 連續第 13 季成長。正如 Teresa 也提到的，我們維持今年的 FFO 每單位指引範圍，並因資本支出低於先前的預測而小幅提高 AFFO 每單位指導範圍。

We also tweet their guidance for same property NOI to 6% due primarily to transitory vacancy at a redevelopment project in (inaudible) in a short period of free rent related to the renewal and expansion of a tenant in Memphis which Lorne will provide further detail on.

我們也在推特上發布了他們對同一房產NOI 的指引至6%，這主要是由於（聽不清楚）重建項目的暫時空置，在與孟菲斯租戶的更新和擴建相關的短期免費租金中，洛恩將提供更多詳細資訊。

With that said same property NOI growth on a constant currency basis was strong once again in a quarter at 6.2% led by gains in Canada at just over 14%, Austria at 7.1% and the US at 4.5%. Further as outlined in our press release and MD&A, the team achieved an average increase in rental rate of just over 30% of 1.6 million square feet of Q3 2024 maturities led by strong renewal spreads in the US and GTA.

儘管如此，以固定匯率計算的同一房地產 NOI 成長在本季再次強勁，達到 6.2%，其中加拿大成長略高於 14%，奧地利成長 7.1%，美國成長 4.5%。此外，正如我們的新聞稿和MD&A 中所述，在美國和大多倫多地區強勁的續租利差帶動下，該團隊在2024 年第三季到期的160 萬平方英尺的租金中實現了略高於30% 的平均租金成長。

On that note, I wanted to mention the net fair value gains on our investment properties driven as mentioned by the renewal rates achieved on a number of our GTA and US properties in the quarter and highlight that our NAV now sits within [a dollar] of the high water mark recorded in the third quarter of 2022 supported by higher Euro and USD rates versus [CAT] accretive unit buyback funded by free cash flow profit from several successful development stabilizations and significant increases in NOI and market rents across our portfolio which have effectively offset the significant upward adjustments we have applied to our discounted tax rates over that period.

在這一點上，我想提及我們的投資物業的淨公允價值收益，正如本季度我們的許多大多倫多地區和美國物業所實現的續訂率所驅動的那樣，並強調我們的資產淨值目前在[一美元] 範圍內。次成功的開發穩定以及我們投資組合中NOI 和市場租金的顯著增長，這有效地促進了抵消了我們在此期間對折扣稅率進行的大幅上調。

Before I turn the call over to Lorne for an update on our leasing and developments. I also wanted to recognize a few key achievements from our EST program. Granite was once again ranked number one by [GRPS] among our peer group of listed North American industrial REITS, quite an accomplishment in in my opinion.

在我把電話轉給洛恩之前，請他了解我們租賃和開發的最新情況。我也想表彰我們 EST 計劃的一些關鍵成就。Granite 再次被 [GRPS] 在北美上市工業 REITS 同行中排名第一，在我看來這是一項相當大的成就。

In addition, the peak capacity of the solar PV systems and [solid] properties continues to grow and has now reached over 45 megawatts and we remain on track to meet our target capacity of 50 megawatts by the end of 2025.

此外，太陽能光電系統和[固體]財產的峰值容量持續成長，目前已達到 45 兆瓦以上，我們仍有望在 2025 年底實現 50 兆瓦的目標容量。

Finally, 44% of our properties have now successfully achieved rebuilding certification and this number is expected to surpass 50% by the end of the year. I will now turn the call over to Lorne for an update on our development and leasing programs.

最後，我們 44% 的房產現已成功獲得重建認證，預計到今年年底這一數字將超過 50%。我現在將把電話轉給洛恩，以了解我們的開發和租賃計劃的最新情況。

Thanks Kevan and good morning everyone. I will begin my comments with a short update on our remaining active development projects. The 50,000 square foot expansion in Ajax, Ontario was substantially completed in the quarter with our prelease tenant taking occupancy of approximately 30,000 square feet and commencing their operations.

謝謝凱文，大家早安。我將首先對我們剩餘的活躍開發項目進行簡短的更新來開始我的評論。安大略省阿賈克斯的 50,000 平方英尺擴建項目已於本季基本完成，我們的預售租戶佔用了約 30,000 平方英尺並開始營運。

Also, our 52,000 square foot expansion in Weird Netherlands was also substantially completed on schedule this quarter and the tenant has committed to a 10 year lease extension on both the existing and expansion space which will commence in September 1 of this year. As a reminder, we also have approximately 160 acres of land capable of developing approximately 2.4 million square feet.

此外，我們在 Weird Dutch 的 52,000 平方英尺擴建項目也於本季度基本按計劃完成，租戶已承諾將現有空間和擴建空間的租約延長 10 年，該期限將於今年 9 月 1 日開始。提醒一下，我們還擁有約 160 英畝的土地，可開發約 240 萬平方英尺的面積。

While we continue to move some of these developments forward from a permanent perspective. And in the case of Houston, some infrastructure improvements, we want to remain ready to entertain and build opportunities, but are not contemplating any speculative construction at this time.

同時，我們繼續從永久的角度推動其中一些發展。就休士頓而言，我們希望做好一些基礎設施的改善準備，以迎接和創造機會，但目前不考慮任何投機性建設。

On the leasing front, leasing market fundamentals during Q3 behaved generally similar to last quarter. Vacancy rates among our markets were mixed with roughly half increasing, albeit at smaller magnitudes and the remaining markets either remain steady or slightly decreasing. It feels like we are close to peak vacancy in these markets, but the next few quarters should provide a clearer picture.

租賃方面，第三季租賃市場基本面與上季基本相似。我們市場的空置率參差不齊，大約有一半增加，但幅度較小，其餘市場要麼保持穩定，要麼略有下降。感覺這些市場的空置率已接近峰值，但接下來的幾季應該會提供更清晰的情況。

Average asking rents during the quarter generally remain stable in most of our markets. And those that did experience slight declines in published rates will not affect us based on where in place rents are for the assets we own in those markets.

本季大多數市場的平均租金要價整體保持穩定。根據我們在這些市場中擁有的資產的實際租金，那些公佈的利率確實經歷了小幅下降的國家不會對我們產生影響。

Absorption across the majority of our markets increased quarter over quarter and again, represented some of the nation's top performers, but normally year-to-date metrics are still low when compared to historical averages. We remain encouraged with the slowly improving leasing atmosphere. We continue to see a flight to quality and location.

我們大多數市場的吸收量逐季增加，代表了一些全國表現最好的市場，但通常與歷史平均值相比，年初至今的指標仍然較低。我們對租賃氛圍的緩慢改善感到鼓舞。我們繼續看到質量和位置的飛躍。

Tenants are clearly differentiating between class A and class B offerings. Premium building specifications and core locations should attract more interest as tenants look to improve the quality of their supply chains.

租戶明顯區分 A 類和 B 類產品。隨著租戶尋求提高供應鏈的質量，優質的建築規格和核心位置應該會吸引更多人的興趣。

As mentioned last quarter, tenants continue to take their time to evaluate their real estate decisions much like they did prior to the pandemic and seemingly more particular to large capital decisions. With the US election behind us, e-commerce adoption continuing to increase and interest rates and construction start decreasing, the environment should make for an easier decision making process at the corporate level and in turn result in stronger demand market.

正如上個季度提到的，租戶繼續花時間評估他們的房地產決策，就像他們在疫情大流行之前所做的那樣，而且似乎更注重大型資本決策。隨著美國大選的結束，電子商務的採用率持續增加，利率和建築業開始下降，這種環境應該會讓企業層面的決策過程變得更加容易，從而帶來更強勁的需求市場。

With respect to our US market where most of our short term leasing initiatives are occurring. We are further encouraged with the generally improving leasing fundamentals. Granite's markets accounted for 6 of the 10 highest net absorption locations for the first three quarters of 2024, which represented approximately 53% of the overall net absorption across the country.

就我們的美國市場而言，我們大部分的短期租賃計劃都是在美國市場進行的。租賃基本面的普遍改善進一步鼓舞了我們。2024 年頭三季度，花崗岩市場佔淨吸收量最高的 10 個地區中的 6 個，約佔全國總淨吸收量的 53%。

Properties under construction and construction starts continue to decline [voting] well, for '25 and 2026. Asking rents within the Granite portfolio remain generally stable and we continue to see a strong mark to market opportunity on both the IPP and development pro forma leases. In Q3 Granite, achieved average rental rate spreads of 55% over expiring rents representing approximately 3.3 million square feet of new leasing and renewals completed in the quarter led by deals in the GTA and the US.

25 年和 2026 年，在建和開工的房產繼續大幅下降。花崗岩投資組合中的租金要價整體保持穩定，我們繼續看到獨立發電廠和開發預計租賃的市場機會強勁。第三季度，Granite 的平均租金比到期租金高出55%，這意味著該季度完成的新租賃和續約面積約為330 萬平方英尺，其中以大多倫多地區和美國的交易為主導。

This includes the approximately 600,000 square feet of space in Indianapolis that was renewed subsequent to Q2 and mentioned during my remarks in the previous quarter. Subsequent to Q3, approximately 300,000 square feet of vacant space in our Memphis market was leased.

這包括印第安納波利斯約 60 萬平方英尺的空間，該空間在第二季之後進行了更新，並在我上一季的演講中提到。第三季之後，孟菲斯市場約 30 萬平方英尺的空置空間被出租。

Also, we renewed an additional 530,000 square feet in Indianapolis at approximately 40% over expiring rent. With respect to the 2024 lease maturity, we have renewed or extended all of our remaining lease maturities with an approximately 16% increase over the expiring rent which was muted by the contractual Graz Austria Renewal. This represented a retention rate of just over 94% which we are very pleased with.

此外，我們還以比到期租金高出約 40% 的價格在印第安納波利斯額外續租了 53 萬平方英尺的土地。就 2024 年的租賃到期而言，我們已經續約或延長了所有剩餘的租賃期限，與格拉茨奧地利續約所抑制的到期租金相比增加了約 16%。這表明保留率略高於 94%，我們對此感到非常滿意。

With respect to the 2025 maturities, we continue to make good progress having now renewed or extended approximately 55% of the 5.5 million square feet and continue to believe that we will achieve greater than 30% average renewal spreads on these expiries. As it relates to our occupancy, we did slightly by 25th from 94.5% in Q2 due primarily the result of a known vacancy in Memphis and the addition of the remaining vacant space coming onstream at our Ajax development.

就 2025 年到期而言，我們繼續取得良好進展，現已更新或擴展了 550 萬平方英尺的約 55%，並仍然相信我們將在這些到期日實現超過 30% 的平均更新利差。就我們的入住率而言，我們的入住率比第二季度的94.5% 略微下降了25 位，這主要是由於孟菲斯已知的空置率以及我們的Ajax 開發項目即將投入使用的剩餘空置空間的結果。

Committed occupancy is 94.7%, as a result of the new lease at one of our vacancies in our Memphis market. We were in advanced discussions with a potential full building user at our vacancy in Louisville that did not materialize.

由於我們在孟菲斯市場的一個空缺位置簽訂了新租約，承諾入住率為 94.7%。我們與路易斯維爾空缺的潛在完整建築用戶進行了深入討論，但沒有實現。

And as a result, we are now expecting occupancy to end the year closer to 95% than the 96% to 97% previously forecasted. On October 14, one of our tenants true value company advised that it had voluntary -- voluntarily filed for chapter 11 proceedings in the US Bankruptcy Court. In addition, the company entered into an agreement to sell substantially all of its business to do it best court including our facility.

因此，我們現在預計今年年底入住率將接近 95%，而先前預測為 96% 至 97%。10 月 14 日，我們的一位租戶 true value company 表示，它已自願向美國破產法院提起第十一章訴訟。此外，該公司還簽訂了一項協議，出售其幾乎所有業務，包括我們的設施。

True value remains current on their rental obligations and while we are following this matter closely, it is too early to provide any further clarity on the outcome.

他們的租金義務的真實價值仍然是最新的，雖然我們正在密切關注此事，但現在就結果提供任何進一步的明確性還為時過早。

In closing, we are pleased with the results of our 2024 lease maturities and our progress on the 2025 maturities. Our leasing teams continue to work hard and remain encouraged by the level of engagement and activity we are experiencing.

最後，我們對 2024 年租賃到期的結果以及 2025 年到期的進度感到滿意。我們的租賃團隊繼續努力工作，並對我們所經歷的參與度和活動水平感到鼓舞。

And with that, I'll hand it back over to Kevan.

有了這個，我會把它交還給凱文。

Thanks Lorne. Just a few more comments from me in the quarter and the outlook before we open up the call for questions.

謝謝洛恩。在我們開始提問之前，我僅就本季度的情況以及前景發表一些評論。

I think what for me when I read our press release and MD&A was the amount of progress we had made in a number of key fronts since our last call. From the transition of our staple unit structure to a confessional re trust unit structure to refinancing roughly $800 million very timely by the way of 2024 and 2025 debt maturity for five and seven years at 3.5% and 4.35% respectively.

我想，當我閱讀我們的新聞稿和 MD&A 時，我會看到自上次電話會議以來我們在許多關鍵領域取得的進展。從我們的主要單位結構向懺悔再信託單位結構的轉變，到到2024 年和2025 年債務到期時非常及時地再融資約8 億美元，期限分別為3.5% 和4.35%，為期五年和七年。

And as Teresa mentioned, extending our weighted average remaining term from 3.1 to 4.6 years to delivering two expansions in the GTA of the Netherlands to renewing over 90% of our 2024 expiry and executing over 3 million feet of lease extensions in the quarter and an average rent increase of 46%.

正如Teresa 所提到的，將我們的加權平均剩餘期限從3.1 年延長至4.6 年，在荷蘭大多倫多地區實現兩次擴建，續簽2024 年到期的90% 以上，並在本季度執行超過300 萬英尺的租約延期，平均租金上漲46%。

And so far in the fourth quarter, as Lorne mentioned, the team has renewed one lease totaling 533,000 feet in the US and an increase of roughly 40% and signed a new lease, which is, as Lorne mentioned, we talked about on the last call and yeah, we increased our annual distribution for the 14th consecutive year.

到目前為止，第四季度，正如洛恩所提到的，球隊在美國續簽了一份總面積為533,000 英尺的租約，增幅約為40%，並簽署了一份新租約，正如洛恩提到的，我們在上一篇文章中談到過是的，我們連續第 14 年增加了年度分配。

In closing, I wanted to highlight our financial performance and provide a little context if I may. We discussed year over year FFO per unit growth and quarter-over-quarter NOI growth. But I wanted to expand on that somewhat to highlight the strong discrepancy between actual performance and our [unicre] Our Q3 FFO per unit is up roughly 9% year over year and has increased 25% over the past two years.

最後，我想強調我們的財務業績，並盡可能提供一些背景資訊。我們討論了單位 FFO 同比增長和 NOI 環比增長。但我想對此進行擴展，以強調實際表現與我們的 [unicre] 我們第三季度每單位 FFO 同比增長約 9%，在過去兩年中增長了 25%。

NOI per unit, which to me is a relevant metric for Granite, given the positive impact the NCIB activity has had not on NOI growth per se, but in terms of per unit metrics has performed even better. NOI per unit is up 12.4% year over year and has increased over 30% over the past two years as a result of development stabilizations and strong same property growth.

每單位 NOI，對我來說是 Granite 的一個相關指標，因為 NCIB 活動本身並未對 NOI 成長產生正面影響，但就每個單位指標而言，表現甚至更好。由於發展穩定和房地產強勁增長，每單位NOI同比增長12.4%，並且在過去兩年中增長了30%以上。

This is significant growth by any measure and correspondently during that period, we reduced our total debt to EBITDA from 7.9 to 7.2 times and our AFFO payout ratio currently sits at 68%.

無論以何種標準衡量，這都是顯著的增長，相應地，在此期間，我們的總債務與 EBITDA 之比從 7.9 倍減少至 7.2 倍，我們的 AFFO 支付率目前為 68%。

I'm pausing for a sec. For our outlook, As Lorne outlined, there appears to be an inflection point of vacancy in a number of our markets. But the recent economic and political uncertainty, we believe have contributed to a delay in occupier decisions regarding new space. But we believe the conditions should continue to improve overall as we look forward to 2025 albeit slowly.

我暫停一下。對於我們的前景，正如洛恩所概述的那樣，我們的許多市場似乎出現了空缺拐點。但我們認為，最近的經濟和政治不確定性導致了租戶對新空間的決定延遲。但我們相信，隨著我們展望 2025 年，整體情況應該會繼續改善，儘管進展緩慢。

In the meantime, as you have heard, the team has made excellent progress so far to 2025 maturities having already renewed our four largest expiries representing over 2.8 million square feet of space and a weighted average increase of approximately 60%.

同時，正如您所聽說的，該團隊迄今為止在2025 年到期方面取得了巨大進展，我們已經續簽了四個最大的到期項目，面積超過280 萬平方英尺，加權平均增長率約為60%。

We finished the quarter with approximately $133 million in cash, an increase of over $30 million from the second quarter and with one of the strongest balance sheets and tail ratios in the sector, we remain well positioned to execute on our business plan for 2024 and deliver strong NOI and cash flow growth moving forward.

本季結束時，我們擁有約1.33 億美元的現金，比第二季度增加了3000 萬美元以上，並且擁有業內最強勁的資產負債表和尾部比率之一，我們仍然有能力執行2024 年的業務計劃並實現目標未來強勁的 NOI 和現金流成長。

And on that operator, I'll open up the call for any questions.

如果有任何問題，我會透過該接線員撥打電話。

Mike Martinez, BMO capital markets.

麥克馬丁內斯 (Mike Martinez)，BMO 資本市場。

Thanks operator. Good. Yeah, good morning, everybody. Just wanted to start off. So first of all, congrats on some of that strong renewal activity that you executed over the past quarter. Lorne, I think you mentioned there was a 500,000 square foot lease in Indy that you renewed. I was just curious if you could remind us what property that is?

感謝運營商。好的。是的，大家早安。只是想開始。首先，恭喜您在上個季度執行的一些強有力的更新活動。洛恩，我想您提到您在印地續簽了 500,000 平方英尺的租約。我只是好奇你能否提醒我們那是什麼財產？

1,451 all points.

總分 1,451 點。

All points. Okay. And then I guess you, if broker listings are correct, you've got maybe a known vacate or an expected vacate at Airtech coming up. Would that be correct?

所有點。好的。然後我猜你，如果經紀人清單是正確的，你可能會在 Airtech 得到一個已知的空缺或預期的空缺。那是正確的嗎？

At the stance right now that is correct. They've extended into the New year. We still haven't got a final date of when they're leaving. But their intention is definitely to leave at the end of the release.

以現在的立場來說，這是正確的。他們已經延長到新年了。我們還沒有確定他們離開的最終日期。但他們的意圖肯定是在發布結束時離開。

Okay. And does that property at all compete with, the stuff that you have on veterans (inaudible)

好的。該屬性是否與退伍軍人的屬性競爭（聽不清楚）

Kind of a different size actually. I mean, it's kind of in the middle of what we have, but not really competing directly unless we were to put the larger space, but not something we've really contemplated at this time.

實際上尺寸有點不同。我的意思是，它有點處於我們所擁有的中間，但並不是真正的直接競爭，除非我們要放置更大的空間，但不是我們目前真正考慮的東西。

Okay. Got it. And then just maybe last one for me before I turn it back. I know you kind of gave us a blooded average on your, expiries that you heard the renewals that you secured for the 2025 expiry. Just curious if you give us a little bit more color on the Mississauga renewal that you (inaudible)

好的。知道了。然後，在我把它轉回去之前，這可能是我的最後一個。我知道您向我們提供了您的到期平均數，您聽說了您在 2025 年到期時獲得的續約。只是好奇你是否能給我們更多有關密西沙加重建的信息（聽不清楚）

It's Kevan, Mike. We really can't, I think we are bound by the conditions of the renewal agreement. We can't disclose what the actual rent was. I can just tell you that, I think we did -- I think the team did an excellent job with this one and I think we keep rents above expectations. Hence, part of the reason for the lift in values in the quarter.

這是凱文，麥克。我們確實不能，我認為我們受到續約協議條件的約束。我們無法透露實際租金是多少。我可以告訴你，我認為我們做到了——我認為團隊在這方面做得非常出色，我認為我們將租金保持在高於預期的水平。因此，這是本季價值上漲的部分原因。

Okay. That's great. Thanks very much. I'll get back.

好的。那太棒了。非常感謝。我會回來的。

Kyle Stanley, Dejardins. Your line is open.

凱爾史丹利，德賈丁斯。您的線路已開通。

Thanks. Morning, everyone. Just on the looking at the Trump Presidency and maybe the expectation of more nationalist policy stance, there's been discussions that this could drive inventory building ahead of tariffs and several other potential positive demand drivers for the industrial space.

謝謝。早安，大家。就川普總統任期以及可能出現更多民族主義政策立場的預期而言，有人討論這可能會在關稅和工業領域其他幾個潛在的積極需求驅動因素之前推動庫存增加。

Obviously, incredibly early need to see how this all plays out. But initially, how are you guys thinking about a Trump Presidency (inaudible) you seen any discussions with tenants change or were they holding off in advance of this? Just curious to hear your thoughts.

顯然，我們需要非常早地了解這一切將如何發展。但最初，你們如何看待川普總統任期（聽不清楚），你們看到與租戶的任何討論都發生了變化，還是他們在此之前推遲了？只是好奇想聽聽你的想法。

I definitely, I think we mentioned, I think we were definitely seeing a little more careful deliberation and delays, intended decisions, but I can't per se say that it was actually related to one candidate or the other. I think there was just a lot of uncertainty about what policies may come out of the election results and we do expect that to relax a little bit, not necessarily because of Trump, but just because of the -- now there's a known outcome in the election.

我確實，我想我們提到過，我認為我們肯定看到了更仔細的審議和延誤，有意的決定，但我本身不能說這實際上與一位候選人有關。我認為選舉結果可能會產生什麼政策存在很大的不確定性，我們確實預計會有所放鬆，不一定是因為川普，而只是因為——現在有一個已知的結果選舉。

But I think last time when you look at 2016 to 2020 I mean, I wouldn't sit here. I think I've said this before. I wouldn't sit here and say tariffs are good for anybody's business and including ours. However, it didn't have a big impact other than it did cause more nearshoring and onshoring. So we do expect that trend. I'm looking around the room and everybody.

但我想，上次當你回顧 2016 年到 2020 年時，我的意思是，我不會坐在這裡。我想我以前已經說過了。我不會坐在這裡說關稅對任何人的生意都有好處，包括我們的生意。然而，除了導致更多的近岸外包和在岸外包之外，它並沒有產生太大的影響。所以我們確實期待這種趨勢。我環顧房間和每個人。

We do expect that trend to continue. So I don't expect it to have a negative impact on our business per se. And if anything, I think would accelerate the sort of onshoring that we've been seeing particularly on the manufacturing side, which is not necessarily our cup of tea, but in the end, it takes up space in our sector and it drives up demand overall, which is positive for us, obviously.

我們確實預計這種趨勢將持續下去。因此，我預計這不會對我們的業務本身產生負面影響。如果有什麼不同的話，我認為會加速我們所看到的外包，特別是在製造方面，這不一定是我們喜歡的，但最終，它會佔用我們行業的空間並推高需求總的來說，這顯然對我們來說是積極的。

Okay. Fair enough. Yeah, your assets support the big increase. (technical difficulty)

好的。很公平。是的，你的資產支持大幅成長。（技術難度）

(technical difficulty) Green Street.

（技術難度）格林街。

Thank you and good morning. Just one question for me. Just adding to Kyle's questions in terms of capital allocation. You guys have been a bit more into capital preservation mode as of recently. So I guess as of today, how would you compare fundamentals in the US versus Europe and Canada from here? And I guess I can do you see any factors that could incentivize you to become a bit more active in one particular market or you intend to remain more conservative.

謝謝你，早安。只是問我一個問題。只是補充凱爾在資本配置上的問題。你們最近比較傾向於資本保值模式。所以我想從今天開始，您會如何比較美國與歐洲和加拿大的基本面？我想我可以讓你看到任何可能激勵你在某個特定市場變得更加活躍或你打算保持更加保守的因素。

Fred, it's Kevan. In terms of the fundamentals, I think we're still feeling pretty positive on Europe right now. I think they are going through the same sort of moderation in North America going through for sure. But rent growth has been more positive in Germany and the Netherlands that has been in a number of markets here. By the way, when we look at the markets that we're in, the only markets where we saw asking rents decrease were Savannah, New Jersey and the GTA.

弗雷德，我是凱文。就基本面而言，我認為我們目前對歐洲仍然非常樂觀。我認為他們肯定會在北美經歷同樣的緩和。但德國和荷蘭的租金成長更為積極，這在許多市場都是如此。順便說一句，當我們審視我們所在的市場時，我們發現租金要價下降的唯一市場是薩凡納、新澤西州和大多倫多地區。

So we continue to see decent rent growth in Germany in the Netherlands. And we believe that -- that's going to continue for a number of reasons. So we do continue to like Europe and if you ask me today and Lorne can add to this, he asked me today where I think is going to be showing a rent growth in 2025. I would definitely say you and I would say our markets in the US and the GTA. In terms of capital allocation, you're right.

因此，我們繼續看到德國和荷蘭的租金成長良好。我們相信，出於多種原因，這種情況將繼續下去。因此，我們確實繼續喜歡歐洲，如果你今天問我，洛恩可以補充一下，他今天問我，我認為 2025 年哪裡的租金會成長。我肯定會說你和我會說我們在美國和大多倫多地區的市場。就資本配置而言，你是對的。

I think we have said, and I'll be consistent here that we are open to the right deal. It has to be compelling given where our cost of capital is today and we just haven't seen that, but we continue to pursue selective deals in very selective markets in North America, including GTA and markets in Europe. So we'll continue to evaluate those opportunities, but we remain in no rush to do so.

我想我們已經說過，我將在這裡保持一致，即我們對正確的交易持開放態度。考慮到我們今天的資本成本，它必須引人注目，而我們只是還沒有看到這一點，但我們繼續在北美非常有選擇性的市場（包括大多倫多地區和歐洲市場）尋求選擇性交易。因此，我們將繼續評估這些機會，但我們並不急於這樣做。

So, it looks like this despite being a bit more optimistic on that you would consider deals pretty much anywhere, right for the right conditions.

所以，看起來是這樣的，儘管你會在任何地方考慮交易，只要條件合適，你會對此更加樂觀。

Yeah, the right deal, I would say so. For various markets again, I don't want to disclose exactly what markets we're looking at, but certainly Tier 1 markets are our focus right now. But it's not necessarily in Europe or North America. It's not necessarily just one of the two.

是的，正確的交易，我會這麼說。再次對於各個市場，我不想透露我們正在關注哪些市場，但肯定一級市場是我們目前的重點。但不一定是在歐洲或北美洲。它不一定只是兩者之一。

Got it. Thank you so much.

知道了。太感謝了。

Matt Kornack, National Bank Financial.

馬特‧科納克 (Matt Kornack)，國家銀行金融部門。

Hi guys. Kevin just as a follow up to that. I mean, you're trading at almost a 6% implied or over a 6% implied cap rate on essentially current NOI. Can you give us a sense that you have free cash flow. You have cash on the balance sheet where your pecking order of putting capital to use would be acquisitions and CIB or development at this point. I know you have a few projects that are ready to go, but I didn't get a sense as to whether you're putting shovels in the ground on those at this point.

嗨，大家好。凱文只是跟進此事。我的意思是，就目前的 NOI 而言，您的交易價格幾乎是隱含的 6% 或超過 6% 的隱含上限。您能給我們一種您擁有自由現金流的感覺嗎？您的資產負債表上有現金，此時您使用資本的順序將是收購、CIB 或開發。我知道你們有幾個項目已經準備好，但我不知道你們此時是否正在為這些項目埋下鏟子。

I don't think that there is a clear number one in our set of priorities. We are looking at retiring some debt in the short term, NCID could come back into play depending on what happens over the next couple of months. And development yes, we are pursuing a few build to suit opportunities. And if the economics are right, definitely, that would certainly be of great interest to us. And again, these sort of special or specific acquisition opportunities out there. So there's no clear winner, I can say right now that I think everything's on the table the best way I could put it.

我認為我們的優先事項中沒有明確的第一要務。我們正在考慮在短期內償還一些債務，NCID 可能會重新發揮作用，具體取決於未來幾個月發生的情況。和發展是的，我們正在追求一些構建以適應機會。如果經濟學是對的，那我們肯定會對此非常感興趣。再說一次，這些特殊或特定的收購機會就在那裡。所以沒有明顯的贏家，我現在可以說，我認為一切都以我能說的最好的方式擺在桌面上。

Okay. Fair enough. And Lorne, I think you mentioned true value in your prepared remarks. Can you give us a sense there's a long wall to that, what the range of potential outcomes would be and I mean, if you were to get it back, which doesn't sound like it's the case where rents would be relative to the market and whether that's a highly leasable asset.

好的。很公平。洛恩，我認為您在準備好的演講中提到了真正的價值。你能給我們一種感覺，那就是有一堵很長的牆，潛在結果的範圍是什麼，我的意思是，如果你要把它拿回來，這聽起來不像是租金相對於市場的情況以及這是否是高度可租賃的資產。

Sure. Yeah, I mean, we -- we've done some work on it and it's obviously early days, but we've done some overlays on trying to see where they do it best locations are relative to ours. There was an announcement that true value made back in the summer that our property was going to become the Northeast Regional Distribution Center for true value.

當然。是的，我的意思是，我們已經在這方面做了一些工作，顯然還處於早期階段，但我們已經做了一些覆蓋，試圖看看他們在哪裡做得最好，相對於我們的位置。今年夏天，《真實價值》曾宣布我們的房產將成為《真實價值》的東北地區配送中心。

And as a result, they were shutting down other operations. So, I mean, obviously I can't comment beyond that. But I say, the options are either they assume the lease, they could come back and renegotiate or they could, they cannot assume the lease those would be the three and we'll find out.

結果，他們關閉了其他業務。所以，我的意思是，顯然我不能對此發表評論。但我說，選擇要么是他們承擔租賃，他們可以回來重新談判，要么他們可以，他們不能承擔租賃，這就是這三個，我們會找出答案。

But I think as it stands right now, we seem reasonably optimistic that there's no reason why they wouldn't want to keep the building. It's a great building, it's a great location and would fit in well with the combined companies (inaudible)

但我認為就目前情況而言，我們似乎相當樂觀，他們沒有理由不想保留這棟建築。這是一棟很棒的建築，地理位置優越，非常適合合併後的公司（聽不清楚）

The other thing I would add is that the rents are below market are pretty firmly below market, which I think, and the other thing I would add too is that the building can be Demi pretty effective that way for the (inaudible) so it can be right size, whatever is needed for that market at the time.

我要補充的另一件事是，租金低於市場水平，我認為，而且我還要補充的另一件事是，這座建築對於（聽不清楚）來說可以非常有效，所以它可以尺寸合適，無論當時的市場需要什麼。

And does this open the option for you to get at that below or can I just assume it on the terms that were being paid before?

這是否為您打開了獲取以下內容的選項，或者我可以根據之前支付的條款來假設它嗎？

You would assume it on the terms.

你會根據條款假設它。

Okay. And then just quickly last one. And it's a technical one but on straight line rent Teresa, it, it went up a bit. I know you guys have finished some expansion assets. And there may be something else on the leasing side, but how should we think of that going forward?

好的。然後很快就到了最後一個。這是一個技術性的問題，但在直線租金特雷莎，它，它上升了一點。我知道你們已經完成了一些擴展資產。租賃方面可能還有其他事情，但我們該如何看待未來呢？

Yeah, so you're right. It was because of the some new leasing we did in the third quarter. But like so we had about $3.5 million, $3.4 million this quarter. Right now, we're actually projecting that to go down by $1 million for Q4. And then after that, in all honesty, it's going to really depend on leasing in '25.

是的，所以你是對的。這是因為我們在第三季做了一些新的租賃。但就像這樣，本季我們大約有 350 萬美元、340 萬美元。目前，我們實際上預計第四季度的支出將減少 100 萬美元。在那之後，老實說，25 年它將真正取決於租賃。

So I think really steady state, you could look at $2 million to $3 million. But then of course, as we lease up, that could go as high as like $4 million or $5 million a quarter. But it's at this point in time, I think all I can really give you is fourth quarter. It's looking about $2.5 million.

所以我認為真正穩定的狀態下，你可以考慮 200 萬到 300 萬美元。當然，當我們出租時，每季的租金可能會高達 400 萬或 500 萬美元。但在這個時間點上，我想我真正能給你的就是第四季。看起來大約是250萬美元。

No, that's helpful. help preferred cash NOI and getting it out. So that works. Thanks.

不，這很有幫助。幫助首選現金 NOI 並將其取出。這樣就可以了。謝謝。

Thank you. Palmy Bear, RBC Capital Markets.

謝謝。Palmy Bear，加拿大皇家銀行資本市場。

Thanks. Hi, everyone. I just want to maybe step back. Can you just remind us where the bulk of the vacancy in the US portfolio sits? If I recall, I think, Indianapolis, is it maybe a bigger piece of it and maybe some natural assets? But maybe just remind us where we -- where, how it kind of spreads out?

謝謝。大家好。我只是想也許退後一步。您能否提醒我們美國投資組合中的大部分空缺位於何處？如果我記得的話，我想，印第安納波利斯，它可能是其中更大的一部分，也許還有一些自然資產？但也許只是提醒我們在哪裡——在哪裡，它是如何傳播的？

Yeah, Indianapolis, we have also the large vacancy in Louisville and then really after that, it's a spattering. There's a little bit in the GTA, there's a little bit in Nashville and it's a little bit in Chicago and a little bit in Memphis.

是的，印第安納波利斯，我們在路易斯維爾也有很大的空缺，然後真的在那之後，這是一個飛濺的情況。大多倫多地區有一點，納許維爾有一點，芝加哥有一點，孟菲斯有一點。

And (inaudible)

和（聽不清楚）

In (inaudible) has, we kind of go short term back and forth on that one. And (inaudible)

在（聽不清楚）中，我們在這個問題上反覆進行了短期的討論。和（聽不清楚）

Just a note on palm on (inaudible) because it can be annoying for me at times personally. (inaudible) goes up and down. It's a redevelopment. It's a site we've applied for redevelopment. And we're not really sure what we're going to do long term with the asset. So the tendencies there tend to be shorter term, they go up and down quite a bit. So it does cause some noise from quarter to quarter.

只是在手掌上寫下註釋（聽不清楚），因為它有時對我個人來說可能很煩人。 （聽不清楚）上下移動。這是一個重建。這是我們申請重建的一個地點。我們並不確定我們將如何長期利用該資產。因此，那裡的趨勢往往是短期的，它們上下波動很大。因此，它確實會在每個季度產生一些噪音。

Got it. Yeah, that's helpful. I was just thinking along the lines of the, again, the US assets here, any update on traction at Veterans Drive and then or some of the national vacancies?

知道了。是的，這很有幫助。我只是在思考這裡的美國資產，退伍軍人大道的吸引力有什麼更新，然後還是一些全國性的職缺？

We listen, we continue to issue proposals. There is interest here and there. Nothing that's at an imminent stage at this time. We also have good touring at our Louisville property and Nashville has been consistently busy as far as traffic in and at the building and in all honesty, we've had some very close, kind of one yard liner on leasing up that space, but it remains a very good active market for us, Nashville.

我們傾聽，我們繼續提出建議。到處都有興趣。目前沒有什麼是迫在眉睫的。我們在路易斯維爾的房產也進行了很好的遊覽，而納什維爾的交通一直很繁忙，老實說，我們在租賃該空間時有一些非常接近的單碼襯墊，但它對我們納什維爾來說，仍然是一個非常活躍的市場。

And maybe just coming back to last quarter, I think the Ohio vacancy or the bankruptcy from that tenant. What's -- any update there?

也許回到上個季度，我認為俄亥俄州的空缺或該租戶的破產。有什麼更新嗎？

Again, really good activity on it. There is some interest in it, for sure. We've had over a half a dozen tours. So, really good activity today, but nothing imminent at this moment.

再說一次，這方面的活動非常好。當然，有人對此感興趣。我們已經進行了六次以上的旅行。所以，今天的活動確實很好，但目前沒有什麼迫在眉睫的事情。

Okay. I guess, if you put all that together, Kevan, I think, or, and I think, I think you mentioned today that, okay, occupancy kind of holds steady at, or 95% -- sorry for this year by year end. When you think about all the traction that you're getting and the commentary made and I guess we're not sure what happens with true value, but just how does the 2025 outlook kind of shape up at this point from an occupancy standpoint?

好的。我想，如果你把所有這些放在一起，Kevan，我想，或者，我想，我想你今天提到，好吧，入住率保持穩定在 95%——到今年年底，對此感到抱歉。當你想到你所獲得的所有關注和評論時，我想我們不確定真正的價值會發生什麼，但從入住率的角度來看，2025 年的前景會如何形成？

I would think of it more from a sort of permanent stabilized basis. And I think, we feel this portfolio should be somewhere 96.5%, 98%. So if you were to assume 97% for us, somewhere in that range, I think that would be fair. That's kind of how we would look at it.

我會更多地從某種永久穩定的基礎來思考它。我認為，我們認為這個投資組合應該是 96.5%、98%。因此，如果你假設我們的勝率是 97%，在這個範圍內的某個地方，我認為這是公平的。我們就是這樣看待它的。

Got it. Thanks very much. I'll turn it back.

知道了。非常感謝。我會把它轉回來。

Thank you. (inaudible) CIBC.

謝謝。（聽不清楚） CIBC。

Thanks. Good morning. Just to start off with a more higher level question. But for Kevan, but just wondering what kind of catalyst do you think it takes for occupiers to move from being hesitant when it comes to taking space and becoming or adopting a more active stance as we move into 2025?

謝謝。早安.只是從一個更高層次的問題開始。但對於 Kevan 來說，您認為需要什麼樣的催化劑才能讓佔領者在進入 2025 年時從在佔用空間方面的猶豫轉變為或採取更積極的立場？

Got you. I wish I knew the answer to that. Who knows what's on the mind? But I, but I will say, look, I said this on previous calls too when it comes to sort of a slowdown in the economy. It does feel to me like we have been in somewhat of a good recession now for a while.

明白你了。我希望我知道答案。誰知道心裡在想什麼？但我，但我會說，聽著，我在之前的電話會議上談到經濟放緩時也說過這一點。在我看來，我們確實已經陷入了一段良好的衰退一段時間了。

And I think it's sort of been masked by the sort of service sector. And I think that is actually beginning to change. And so I think with interest rates falling with the political uncertainty in the US out of the way, I don't think we necessarily need to see very strong economic growth for there to be a resumption in and higher demand from tenants. I think a lot of the uncertainty has sort of been taken out of the system.

我認為這有點被服務業所掩蓋。我認為這種情況實際上正在開始改變。因此，我認為隨著美國政治不確定性的消除，利率下降，我認為我們不一定需要看到非常強勁的經濟成長才能實現租戶的恢復和更高的需求。我認為很多不確定性已經從系統中消除了。

And Lorne mentioned this again when we look at our portfolio consolidation is really another sort of positive catalyst for us and a friend, we've started to see that and I'll go a little further where we're active in the leasing market, including the GTA. We are now truly seeing a bifurcation and asking rents between modern products and B&C product. So we're starting to see that separation. And I think we want to see that, if it means a decline overall in market rents, that's fine.

當我們審視我們的投資組合整合時，洛恩再次提到這一點，這對我們和朋友來說確實是另一個積極的催化劑，我們已經開始看到這一點，我將進一步討論我們在租賃市場上活躍的領域，包括大多倫多地區。我們現在真正看到了現代產品和 B&C 產品之間的分歧和要價。所以我們開始看到這種分離。我認為我們希望看到，如果這意味著市場租金總體下降，那就很好。

We've always been conservative in our outlooks and our projections particularly to the market. But we want to see tenants choose quality -- opt for quality. And we're starting to see that and I think that will benefit us on a relative basis overall. So we are starting to see more of the consolidation activity. We're starting to see better activity in the larger day formats as well.

我們對前景和預測一直持保守態度，尤其是市場的預測。但我們希望看到租戶選擇品質——選擇品質。我們開始看到這一點，我認為這將使我們總體上受益。因此，我們開始看到更多的整合活動。我們也開始看到更大的日間活動更好。

E-commerce is sort of rearing its head again, Amazon is starting to make more of these decisions. So I think we're starting to see that mostly because a lot of the uncertainty in terms of borrowing costs, economic uncertainty, et cetera has sort of been alleviated.

電子商務似乎再次抬頭，亞馬遜開始做出更多這樣的決定。所以我認為我們開始看到這一點主要是因為借貸成本、經濟不確定性等方面的許多不確定性已經有所緩解。

Okay. And then I guess on that point, which markets are you feeling best about from a supply and demand perspective and what you think would lag or take longer to come back to seeing rent growth?

好的。然後我想在這一點上，從供需角度來看，您對哪些市場感覺最好，以及您認為哪些市場會滯後或需要更長的時間才能看到租金成長？

Well, I mean, I think Lorne's being a little bit sort of negative around half the markets, we actually saw vacancy sort of I think flatten or improve and I think almost two-thirds of our market. So Lorne mentioned that Nashville, it's hard to really get worried about Nashville. It's been a strong market. Louisville has been strong.

嗯，我的意思是，我認為洛恩在一半的市場上有點負面，我們實際上看到了空缺，我認為我認為是扁平化或改善的，我認為我們的市場幾乎三分之二。所以洛恩提到納許維爾，很難真正擔心納許維爾。這是一個強勁的市場。路易斯維爾一直很強大。

Chicago has been surprisingly strong, I think actually in terms of demand and absorption, Houston has surprised us as a very strong market. Dallas has a lot of supply, but demand continues to lead the nation there.

芝加哥的表現出乎意料地強勁，我認為實際上就需求和吸收而言，休士頓作為一個非常強勁的市場讓我們感到驚訝。達拉斯供應充足，但需求持續領先全國。

So not a lot of concern there when I look forward in terms of supply, where I think Granites are growing. Probably ironically, the GTA is one that worries us a little bit because I think when we looked at a number of our markets in the US for the first time in over 10 years, some of them had no construction starts.

因此，當我展望供應方面時，並沒有太多擔憂，我認為花崗岩正在成長。也許諷刺的是，大多倫多地區讓我們有點擔心，因為我認為，當我們十多年來第一次審視美國的許多市場時，其中一些市場還沒有開工。

So that sort of grip on supply, which is good for us has taken place. But I think the GTA is going to see pretty strong supply continue through 2025 and into 2026. And what that means for the market is a bit of a question for us. Notwithstanding, we have very strong rent spreads and better restaurants in place. So again, we're not that worried about it, but just as we look out to the markets, how they're going to perform in '25 to '26. Those are the marks I think for those that are going to perform strongest in North America.

因此，這種對供應的控制已經發生，這對我們有利。但我認為，大多倫多地區的供應量將持續到 2025 年和 2026 年。這對市場意味著什麼，這對我們來說是一個問題。儘管如此，我們仍然擁有非常強勁的租金差價和更好的餐廳。再說一遍，我們並不那麼擔心，但正如我們關注市場一樣，他們將在 25 至 26 年表現如何。我認為這些是那些在北美表現最強的人的標誌。

Okay. And then just, I guess two more specific questions, you did the Olive Branch lease post the quarter just wondering where rents came in there versus your expectations. And then secondly, just I guess for the Ajax expansion and you just had about 20,000 feet left to lease, wondering what prospects you're seeing for that space?

好的。然後，我想有兩個更具體的問題，您在季度後做了橄欖枝租賃，只是想知道那裡的租金與您的預期相比。其次，我想對於阿賈克斯的擴建，您只剩下大約 20,000 英尺的空間可供租賃，想知道您對該空間的前景有何看法？

How did you come to expectations (inaudible)

你是如何達到預期的（聽不清楚）

Solid based on our expectations and we have really good activity on the remaining 20,000 feet in Ajax. I mean, I'd say it's got great clear heights, brand new buildings, it's got lots of parking. So if someone's looking in that 20,000 feet range, I mean, as far as for class A new generation space, that's it. Yeah.

符合我們的預期，我們在阿賈克斯剩下的 20,000 英尺的比賽中表現出色。我的意思是，我想說它有很高的淨空，全新的建築，有很多停車場。因此，如果有人在 20,000 英尺的範圍內尋找，我的意思是，就 A 級新一代空間而言，就是這樣。是的。

Okay, thanks. I'll turn it back.

好的，謝謝。我會把它轉回來。

Thank you. Brad Sturges, Raymond James.

謝謝。布萊德·史特吉斯、雷蒙·詹姆斯。

Hi there. Just on the comment around the consideration around starting build to opportunities on your existing land bank. Is there a particular return profile that you're looking to achieve before you would break ground? Or is it very site specific?

你好呀。只是關於在現有土地儲備上開始建設機會的考慮的評論。在破土動工之前，您是否希望實現特定的回報情況？還是它是非常具體的？

It's market specific and site specific. I mean, obviously stabilized values not a lot, but I think in terms of spreads, we -- they got pretty tight in 2021 and into 2022 and they certainly expanded. And so our expectations around returns over stabilized have expanded commensurately, but Brad would be hard to point. It depends on -- it depends very much on the market.

它是特定於市場和特定地點的。我的意思是，顯然穩定的價值不是很多，但我認為就利差而言，我們——它們在 2021 年和 2022 年變得相當緊張，而且它們肯定有所擴大。因此，我們對穩定回報的預期也相應擴大，但布拉德很難指出。這取決於——很大程度上取決於市場。

Makes sense. And as potential buyers come back into the investment market, would that open up opportunities for capital recycling at this point within the portfolio?

有道理。隨著潛在買家重返投資市場，這是否會為投資組合內的資本回收創造機會？

I think we're always open to that for noncore assets. I don't think we've got anything on the horizon right now and look at a number of these assets, we see very strong rent lists as well. So that is compelling to us and part of the consideration. So we are open to it in our markets with noncore assets, but nothing that's imminent. But if your question is, are you willing to, of course, we are.

我認為我們對非核心資產始終持開放態度。我認為我們現在還沒有任何東西，看看其中的一些資產，我們也看到了非常強勁的租金清單。所以這對我們來說很有吸引力，也是考慮的一部分。因此，我們在擁有非核心資產的市場上對此持開放態度，但沒有什麼是迫在眉睫的。但如果你的問題是，你願意嗎，當然，我們願意。

Okay. Makes sense. I'll turn it back.

好的。有道理。我會把它轉回來。

Thank you. Himanshu Gupta, Scotia Bank.

謝謝。希曼舒古普塔，豐業銀行。

Thank you and good morning. So just on capital allocation, I mean, when do you resume the acquisition activity there? I mean, acquisition capital are approaching six in many of your markets and your cost of debt financing is like low four. I mean, what you just did. So, how wide the investment will need to be before you go ahead with any acquisitions?

謝謝你，早安。因此，就資本配置而言，我的意思是，你們什麼時候會恢復那裡的收購活動？我的意思是，在許多市場中，收購資本已接近六，而債務融資成本約為四。我的意思是，你剛才做了什麼。那麼，在進行任何收購之前，需要進行多大的投資呢？

I don't know if it's necessarily a spread issue on you. You're absolutely right. And we are looking at those markets as well where we see continued strong growth prospects over the medium to long term and cap rates have expanded to a point where it's become attractive. But again, I'll just repeat. Yes, we could use debt to do it.

我不知道這是否一定是你身上的傳播問題。你是絕對正確的。我們也關注這些市場，從中長期來看，我們看到持續強勁的成長前景，上限利率已擴大到具有吸引力的程度。但我還是要重複一遍。是的，我們可以利用債務來做到這一點。

Yes, we could use our line of credit to do it. But we also have considerations over our entire capital structure which includes the equity capital. So that's an important consideration for us. And just to point out if there's a very compelling deal in one of our focus markets today, we would do it, but it may require us to recycle capital, asset sales, et cetera.

是的，我們可以使用我們的信用額度來做到這一點。但我們也考慮了包括股權資本在內的整個資本結構。所以這對我們來說是一個重要的考慮因素。只是想指出，如果我們今天的重點市場之一有一項非常引人注目的交易，我們會這樣做，但這可能需要我們回收資本、資產出售等。

So we would do it. But and I'm going to exaggerate to make this point to grow just to capture higher cap rates today. I think ignores the fact that our current cost of capital overall and that's always a consideration for us.

所以我們會這麼做。但是，我會誇大這一點，只是為了捕捉今天更高的資本化率。我認為忽略了一個事實，即我們當前的整體資本成本，這始終是我們考慮的因素。

So coming to leverage kind of in the near term unless it's compelling opportunity there. Okay. So on the, and then -- that's all good.

因此，除非那裡有令人信服的機會，否則短期內會利用槓桿。好的。那麼，然後——那就好了。

Yes, sir.

是的，先生。

Okay. Okay. And then on the leasing activity and thanks for all the color provided. First on the Louisville property, it's a large property obviously looks like you were closing in and it did not materialize. So what was the issue like? Can it not ready to comit? I mean, same story or is it like the pricing issue as well?

好的。好的。然後是租賃活動，感謝提供的所有顏色。首先是路易斯維爾的房產，這是一處大型房產，顯然看起來您正在接近，但它並沒有實現。那麼問題是怎麼樣的呢？難道還沒準備好提交嗎？我的意思是，同樣的故事還是也像是定價問題？

And I'll start just on that too. It was actually a clean energy, a global clean energy company that was looking to expand in the US and pull back, I think just because of uncertainty, maybe that had something to do with the US election. We have no idea, but it's not as though they went to another property or another market. They have just sort of delayed their plans for expansion at this time. Okay. Yeah. Yeah.

我也將從這一點開始。它實際上是一家清潔能源公司，一家全球性的清潔能源公司，希望在美國擴張並退出，我認為只是因為不確定性，可能與美國大選有關。我們不知道，但這並不像是他們去了另一個房產或另一個市場。他們此時只是推遲了擴張計畫。好的。是的。是的。

Okay. So same story, that is not ready to commit yet. Okay, fair enough. And then, overall, looks like the expectation is 95% occupancy now compared to obviously, 96% to 97%. So as we get into the next year, I mean, are we looking to modify the approach here, like [Demi] some of the assets or are we just, waiting for the macro to play out and go ahead with the same strategy.

好的。同樣的故事，還沒準備好提交。好吧，很公平。總體而言，目前的預期入住率是 95%，而顯然是 96% 到 97%。因此，當我們進入明年時，我的意思是，我們是否希望修改這裡的方法，例如[Demi]一些資產，或者我們只是等待宏觀發揮作用並繼續採用相同的策略。

I think it's funny because no one people were critical, I think of our high occupancy. We weren't pushing rents hard enough and now our occupancy is falling and now we're not. We sort of somehow forgotten how to lease.

我覺得這很有趣，因為沒有人批評，我想到我們的入住率很高。我們沒有足夠努力地推高租金，現在我們的入住率正在下降，但現在卻沒有。我們有點忘瞭如何租賃。

I don't think our approach changes at the end of the day, what we care very much about is the long term value of the property and long term returns. I don't think we would change anything in the short term just to satisfy someone's expectation of occupancy. I mean, obviously we seem to talk about it a lot and it's important to us because changes in cash flow seem to matter per quarter.

我不認為我們的方法最終會改變，我們非常關心的是房產的長期價值和長期回報。我認為我們不會在短期內為了滿足某人的入住期望而改變任何事情。我的意思是，顯然我們似乎經常談論它，這對我們很重要，因為現金流的變化似乎每個季度都很重要。

And we understand that, but I don't think there's anything that's going to change our, we're not going to do a -- we're not going to make a poor real estate decision just to solve occupancy in the short term. Is that sort of answering your question, we're not going to change our approach as we head into 2025.

我們理解這一點，但我認為沒有什麼會改變我們的，我們不會做——我們不會僅僅為了解決短期入住率而做出糟糕的房地產決策。這就是您問題的答案嗎？

Obviously, we recognize we're in a different environment. It's more competitive. We've been able to hold, not only asking rents for the most part, we've been able to hold through rent, we've been able to hold TIs at very, very acceptable levels, which is good.

顯然，我們認識到我們處於不同的環境。更有競爭力。我們能夠持有，不僅在大部分情況下要求租金，我們還能夠透過租金持有，我們能夠將 TI 保持在非常非常可接受的水平，這很好。

If the market changes or if conditions change in a particular market, we have to respond accordingly. Absolutely, we will. But it will be because it's the right decision in that market for that asset. And we'll have very little to do with sort of managing occupancy levels from (inaudible)

如果市場發生變化或特定市場的情況發生變化，我們必須做出相應的反應。絕對，我們會的。但這是因為對於該資產來說，這是該市場的正確決定。我們幾乎不會管理入住率（聽不清楚）

Got it. Thank you. And then, on the tenant watch list, I mean, you spoke about, I think true value last quarter, I think it was Ohio, the growth property I think. It is very normal to see this kind of kind of bankruptcies in your tenant base or is it something you're watching out for the remaining quarters as well?

知道了。謝謝。然後，在租戶觀察名單上，我的意思是，你談到，我認為上個季度的真正價值，我認為是俄亥俄州，我認為是增長型房產。在您的租戶群中看到這種破產是很正常的，或者您在剩下的季度中也正在關注這種情況嗎？

I think it's normal in the sector. I think it is. And again, this is a pretty critical asset. So we're not trying, we're just trying to provide up to date information to the market. But at this point, we're not overly concerned. But this is normal in the sector and I think it's normal in all sectors frankly. So I don't think it's anything to do right now at this time. And I don't expect there to be major changes that we head into 2025.

我認為這在行業中是正常的。我認為是的。再說一遍，這是一項非常重要的資產。所以我們不是在嘗試，我們只是想向市場提供最新資訊。但目前，我們並不過度擔心。但這在這個行業是正常的，坦白說，我認為在所有行業中都是正常的。所以我認為現在沒有什麼可做的。我預計 2025 年不會有重大變化。

Got it. And on the same subject, I think the Mississauga lease was done. I think it's the we lease. So any thoughts on the quality of the government.

知道了。在同一主題上，我認為密西沙加的租約已經完成。我想這是我們租的。那麼關於政府品質的任何想法。

On Wayfair?

在韋費爾？

On Wayfair, yeah.

在 Wayfair 上，是的。

Yeah. No, no changes at this time.

是的。不，目前沒有任何變化。

Okay. Okay. And this is the last question here. On the rental spread, you mentioned four largest expiry that led to 60% rental spread. Would you say that this Mississauga lease will be closer to the 60% average.

好的。好的。這是最後一個問題。關於租金利差，您提到了導致租金利差達到 60% 的四個最大到期日。您認為密西沙加的租約會更接近 60% 的平均值嗎？

Heavy above there.

上面很重。

Good job. Okay, fantastic. Okay. Thank you guys. I'll turn back.

好工作。好吧，太棒了。好的。謝謝你們。我會回頭。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

SAM Damiani, TD Cowen.

薩姆·達米亞尼，TD·考恩。

Thank you. And good morning still everybody. Just I think basically all my questions have been asked, but I guess just one last one, you mentioned true value. Is there any other known or likely move outs in the next couple of years at this time that you're aware of?

謝謝。大家早安。只是我認為基本上我所有的問題都已被問到，但我想只有最後一個，你提到了真正的價值。據您所知，未來幾年內還有其他已知或可能的搬遷嗎？

No, nothing stands out of 10.

不，沒有什麼比 10 更突出的了。

Okay. And just finally, we talked about this a few times, but I guess just directionally. Do you have a view on how same property NOI growth would be different next year versus 2024?

好的。最後，我們對此討論了幾次，但我想只是定向的。您是否認為明年相同的房地產 NOI 成長與 2024 年有何不同？

We're not providing guidance on that too, but similar to this year. I would, I think that would be a fair sort of, but again, we'll provide a little more detail on the Q4 call.

我們也沒有提供這方面的指導，但與今年類似。我認為這是一種公平的方式，但我們將再次提供有關第四季度電話會議的更多細節。

Okay. Great. Congrats on the progress over the quarter. And have a great rest of the day. Thanks.

好的。偉大的。恭喜本季取得的進展。並度過愉快的一天。謝謝。

Thank you. And it appears that we have no further questions at this time. I will now turn the program back over to our presenters for any additional or closing remarks.

謝謝。目前看來我們沒有其他問題了。我現在將把節目交還給我們的主持人，以供補充或結束語。

Thanks, operator. Thanks everyone for joining us on the Q3 call. And we look forward to speaking with you on our Q4 call in, I guess, March -- in February. Talk to you then.

謝謝，接線生。感謝大家參加我們的第三季電話會議。我們期待在四月的第四季電話會議上與您交談，我猜是三月——二月。那就和你談談吧。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。