Granite Real Estate Investment Trust (GRP.U) 2025 Q1 法說會逐字稿

Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to Granite REIT's first quarter, 2025, results conference call.

早安.我叫西爾維，今天我將擔任你們的會議主持人。現在，我歡迎大家參加Granite REIT 2025年第一季業績電話會議。

(Operator Instructions).

（操作員指令）。

Speaking to you today on the call this morning, it's Kevan Gorrie, President and Chief Executive Officer, and Teresa Meadow, Chief Financial Officer. I will now turn the call over to Teresa Neto to go over certain advisories.

今天早上與大家通話的是總裁兼執行長凱文‧戈里 (Kevan Gorrie) 和財務長特蕾莎‧梅多 (Teresa Meadow)。現在，我將把電話轉給特蕾莎·內托 (Teresa Neto)，討論一些建議。

Thank you, 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 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 that could cause actual results to differ materially from forward-looking statements or information. These risks and uncertainties and material factors and assumptions applied in making forward-looking statements or information are discussed in Granite's material filed with the Canadian Securities Administrators and the US Securities and Exchange Commission from time to time, including the risk factor section of Annual information form for 2024. Granite's management's discussion and analysis for the year ended December 30, 24, filed on February 26, 2025, and for the quarter ended March 31, 2025, filed on May 7, 2025.

謝謝接線生。大家早安。在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、預測或預計存在重大差異。這些陳述和資訊是基於某些重要事實或假設，反映了管理階層目前的預期，並受已知和未知風險和不確定性的影響，這些因素可能導致實際結果與前瞻性陳述或資訊有重大差異。這些風險和不確定性以及用於制定前瞻性陳述或資訊的重大因素和假設在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進行了討論，包括2024年年度資訊表中的風險因素部分。 Granite管理階層於2025年2月26日提交的截至2024年12月30日的年度討論與分析，以及於2025年5月7日提交的截至2025年3月31日的季度討論與分析。

So Brandon posted Q1 2025, results in line with management's annual forecast and guidance, largely driven by strong NOI, favorable foreign exchange, and positive accretion from NCIB unit repurchases partially offset by higher net interest expense.

因此，布蘭登公佈了 2025 年第一季的業績，與管理層的年度預測和指導一致，這主要得益於強勁的淨營業利潤、有利的外匯以及 NCIB 單位回購帶來的正增長，但淨利息支出的增加部分抵消了這一增長。

Four unit in Q1 was $1.46 representing a $0.01 or 0.7% --decrease from Q4 2024 and a $0.16 or 12.3% increase relative to the same quarter in the prior year.

第一季的四個單位為 1.46 美元，比 2024 年第四季減少 0.01 美元或 0.7%，比去年同期增加 0.16 美元或 12.3%。

In Q4 2024, FFO included non-recurring items for the for the reversal of tax provisions, foreign currency gains on monetary items, capital tax savings, and a negative NCICI adjustment, where if excluded, FFO per unit would have been $1.41.

2024 年第四季度，FFO 包括非經常性項目，包括稅收準備金的沖銷、貨幣項目的外匯收益、資本稅節省和負 NCICI 調整，如果排除在外，每單位 FFO 將為 1.41 美元。

Therefore, Q1 2025, FFO per unit is $0.05 higher relative to a normalized Q424.

因此，2025 年第一季度，每單位 FFO 相對於標準化的 2024 年第四季高出 0.05 美元。

The growth in NOI this quarter is primarily derived from strong same property NOI growth enhanced by double digit leasing spreads along with the lease closeout revenue earned on a previously terminated US lease and a terminated lease in Utrecht, Netherlands totaling $0.8 million.

本季 NOI 的成長主要源自於強勁的同一物業 NOI 成長，這得益於兩位數的租賃利差以及先前終止的美國租約和荷蘭烏得勒支終止租約所獲得的總計 80 萬美元的租賃清算收入。

In addition, Granite earned holdover rent from one tenant at a property in Indianapolis where the tenant will be vacating in Q2 for $0.2 million.

此外，Granite 還從印第安納波利斯一處房產的一名租戶那裡獲得了 20 萬美元的剩餘租金，該租戶將於第二季度騰空。

NOI growth was further enhanced by foreign exchange as the US dollar and the EUR were 2.6% and 1.2% stronger respectively in comparison to Q4.

由於美元和歐元與第四季相比分別上漲 2.6% 和 1.2%，外匯進一步促進了 NOI 成長。

As has been previously communicated in Q2, we have two known vacancies commencing in Atlanta and Indianapolis. These vacancies, in addition to the end of holdover rent previously mentioned and no further closeout fees to be recognized, we are forecasting lower NOI in the second quarter relative to Q1, with NOI recovering through the second half of the year, mostly as a result of releasing spreads on maturing leases.

如同先前在第二季所通報的，我們目前已知亞特蘭大和印第安納波利斯兩處空置物業即將開始出租。由於這些空置物業，加上先前提及的續租租金已結束，且不再確認任何清倉費用，我們預測第二季度的淨營運收入 (NOI) 將低於第一季度，但下半年淨營運收入將有所回升，這主要得益於到期租約利差的釋放。

AFFO per unit in Q1 2025, was $1.41 which is $0.16 higher relative to Q4 and $0.19 higher relative to the same quarter last year, with the increase in Q4 mostly tied to lower capital expenditures, leasing costs, and tenant allowances due to timing of leasing turnover and seasonality.

2025 年第一季每單位 AFFO 為 1.41 美元，比第四季高 0.16 美元，比去年同期高 0.19 美元，第四季度的成長主要與較低的資本支出、租賃成本和租戶津貼有關，這是由於租賃週轉時間和季節性造成的。

AFFO related capital expenditures incurred in the quarter to totaled only $0.7 million, which is a decrease of $10.6 million over Q4 and $0.7 million over the same quarter last year.

本季 AFFO 相關資本支出總計僅 70 萬美元，比第四季減少 1,060 萬美元，比去年同期減少 70 萬美元。

For 2025, we continue to expect AFFO related capital expenditures to come in approximately $40 million unchanged from our previous estimates.

到 2025 年，我們仍然預計 AFFO 相關資本支出將達到約 4,000 萬美元，與我們先前的估計持平。

Same property NOI for Q1 was strong relative to the same quarter last year, increasing 4.7% on a constant currency basis and 9.3% when foreign currency effects are included.

第一季同類房產淨營業收入與去年同期相比表現強勁，以固定匯率計算成長 4.7%，計入外匯影響後成長 9.3%。

Same property NOI was driven primarily by CPI and contractual rent increases across all granites regions, positive leasing spreads, lease renewals primarily in the US and Canada and Austria, and the lease commencement of 4 completed development and expansion projects in Canada, the US, and Netherlands.

同一物業的 NOI 主要受到所有花崗岩地區的 CPI 和合約租金上漲、正租賃利差、主要在美國、加拿大和奧地利的租賃續約以及在加拿大、美國和荷蘭的 4 個已完成的開發和擴建項目的租賃開始的推動。

For 2025, we continue to expect constant currency, same property and why based on a four quarter average to come in within the range of 4.5% to 6%, which excludes any potential impact from disposition activity which Kevan will elaborate further on.

對於 2025 年，我們繼續預計，按不變貨幣、相同財產和基於四個季度平均值計算，增長率將在 4.5% 至 6% 之間，這不包括處置活動的任何潛在影響，Kevan 將對此進一步闡述。

GLA in the quarter was $8.5 million, which is $1.2 million lower than the same quarter last year and $0.2 million higher than Q4. The slight increase relative to Q4 includes $7 million unfavorable fair value adjustment to non-cash compensation liabilities that was fully offset by the reduction in corporate restructuring costs incurred in Q4 related to the unstabling of our stapled unit structure.

本季的GLA為850萬美元，比去年同期減少120萬美元，比第四季增加20萬美元。與第四季度相比，GLA略有增加，其中包括700萬美元的非現金薪酬負債的不利公允價值調整，該調整被第四季度因我們合訂單位結構不穩定而產生的企業重組成本的減少完全抵消。

Both do not affect Granite FFO and AFFO metrics. GLA expenses that do impact FFO and AFFO were approximately $0.2 million higher than Q4, which is mostly related to the absence of a $0.5 million capital tax refund which we recorded in Q4.

兩者皆不影響 Granite 的 FFO 和 AFFO 指標。對 FFO 和 AFFO 有影響的 GLA 支出較第四季度高出約 20 萬美元，這主要與我們在第四季度記錄的 50 萬美元資本稅退款缺失有關。

For 2025, we do, we continue to expect GLA expenses that impact FFO and AFFO of approximately $10 million per quarter or roughly 7% of revenues.

對於 2025 年，我們確實預計 GLA 費用將對 FFO 和 AFFO 產生影響，每季約 1,000 萬美元，約佔營收的 7%。

Interest expense was lower in Q1 relative to Q4 by $2.2 million, --while interest income decreased by $2.4 million as compared to Q4, resulting in an increase to net interest expense. The reduction in interest expense was primarily driven by several refinancing activities previously announced.

第一季利息支出較第四季減少220萬美元，而利息收入較第四季減少240萬美元，導致淨利息支出增加。利息支出的減少主要得益於先前宣布的幾項再融資活動。

One was the refinancing of the 2025, term loan with the 2031, debentures at a lower rate, which we closed on October 4, resulting in savings of $0.5 million. The repayment of the 2024 term loan on December 19, contributing $0.2 million in savings. And the refinancing of the December 2026, term loan with our 2026, debentures at a lower rate in February, yielding net savings of $0.2 million after accounting for accelerated accelerated amortization of deferred deferred financing costs of $0.2 million.

一項是，我們以較低的利率將2025年定期貸款再融資為2031年到期的債券，該交易於10月4日完成，節省了50萬美元。 2024年定期貸款於12月19日償還，節省了20萬美元。此外，我們於2月份以較低的利率將2026年12月到期的定期貸款再融資為2026年到期的債券，在扣除20萬美元的遞延融資成本加速攤銷後，淨節省了20萬美元。

These savings were partially offset by $0.7 million net increase in interest expense due to the strengthening of the US dollar and the EUR relative to Granite's foreign denominated debts.

由於美元和歐元相對於 Granite 的外幣債務走強，利息支出淨增加 70 萬美元，部分抵消了這些節省。

The decrease in interest income was due to interest earned in Q4 from the temporary investment of net proceeds of our October 29, to ventures.

利息收入減少是由於第四季度我們將 10 月 29 日的淨收益暫時投資於企業而獲得的利息。

Granite's weighted average cost of debt is currently 2.67%, and the weighted average debt to maturity is 4.1 years. With Granite's next maturity window in September 2026, we continue to expect interest expense to remain stable over the next approximate 18 months at roughly $23.5 million per quarter, barring any new transactions.

Granite目前的加權平均債務成本為2.67%，加權平均債務到期期限為4.1年。鑑於Granite的下一個到期窗口將於2026年9月，我們預計未來約18個月內，除非出現任何新交易，否則利息支出將保持穩定，約為每季2,350萬美元。

For income tax, Q125 current income tax was $2.5 million, remaining relatively flat as compared to the prior year and $1.6 million higher as compared to Q4. In Q1, Granite did recognize a favorable credit relating to German withholding tax reserves of $0.2 million pertaining to a prior tax year. The increase compared to Q4 is primarily due to the $1.6 million credit to current income taxes recorded in Q4.

所得稅方面，2025年第一季當期所得稅為250萬美元，與上年基本持平，較第四季增加160萬美元。第一季度，Granite確認了與上一納稅年度德國預扣稅準備金相關的20萬美元優惠抵免。與第四季度相比，此增幅主要歸因於第四季度記錄的160萬美元當期所得稅抵免。

Resulting from the reversal of prior prior year tax provisions. For 2025, we are expecting current income taxes to remain at approximately $2.7 million per quarter.

因前一年稅務準備金的沖銷而導致。我們預計2025年的當期所得稅將維持在每季約270萬美元。

In terms of our 2025, estimates Granite is keeping guidance unchanged. Granite's current outlook does not significantly change assumptions relating to new leasing of vacant space, which continues to be projected primarily later in the second half of 2025, and also reflects our year-to-date financing and NCIB activity.

就2025年而言，Granite的預測保持不變。 Granite目前的展望並未顯著改變與新租賃空置空間相關的假設，這些假設仍主要預測在2025年下半年晚些時候實現，同時也反映了我們今年迄今為止的融資和NCIB活動。

We continue to forecast FFO per unit within the range of $5.70 to $5.85 representing an approximate 5% to 8% increase over 2024. For AFFO per unit, we are continuing to forecast the range of 4.80% to 4.95%, representing a change of minus1% to 2% over 2024, driven by the higher maintenance capital expenditures we communicated in the prior quarter relative to the prior year.

我們繼續預測每單位 FFO 在 5.70 美元至 5.85 美元之間，比 2024 年增長約 5% 至 8%。對於每單位 AFFO，我們繼續預測在 4.80% 至 4.95% 的範圍內，比 2024 年變化 -1% 至 2%，這是由於我們在上一季傳達的維護資本支出相對於上一年有所增加。

Granite's forecast was updated this quarter to assume a range of US dollar to CAD of $137 to $142 and a range of EUR CAD to $152 to $158.

Granite 的預測在本季度進行了更新，假設美元兌加元的匯率範圍為 137 美元至 142 美元，歐元兌加元的匯率範圍為 152 美元至 158 美元。

Granite will continue to provide updates on our guidance as warranted based on leasing activity and any other changes.

Granite 將根據租賃活動和任何其他變更繼續提供必要的指導更新。

As far as our balance sheet is comprised of total assets of $9.6 billion at the end of the quarter. It was positively impacted by approximately $83.5 million of translation gains on our foreign-based investment properties, primarily due to the 4.1% increase in the EUR exchange rate relative to Q4, partially offset by movement in the fair valuation of grants portfolio of a net fair value loss of $48.2 million.

就本季末的資產負債表而言，我們的總資產為96億美元。這主要得益於我們境外投資物業約8,350萬美元的匯兌收益，這主要歸因於歐元匯率相對於第四季度上漲了4.1%，但贈款組合的公允價值變動（淨公允價值損失4,820萬美元）部分抵消了這一收益。

Our overall weighted average cap rate is 5.4% on in-place NOI, which increased 9 basis points from the end of Q4 and has increased 15 basis points since the same quarter last year.

我們的整體加權平均資本化率為現有淨營運收入 5.4%，較第四季末增加了 9 個基點，較去年同期增加了 15 個基點。

Net leverage at the end of the quarter was 32% and net debt EBITDA was 6.8 times, which remained consistent relative to Q4 and lower than Q1 2024, primarily as a result of NOI growth. Our liquidity is approximately $1.1 billion, representing cash on hand of about $120 million and the underdrawn operating line of $946 million.

本季末淨槓桿率為32%，淨負債EBITDA為6.8倍，與第四季持平，低於2024年第一季，主要原因是淨營業收入（NOI）成長。我們的流動資金約為11億美元，其中包括約1.2億美元的現金和9.46億美元的未提取營運額度。

As of today, Granite has $52 million drawn on the credit facility and $2.4 million in letters of credit outstanding.

截至今天，Granite 已從信貸額度中提取了 5,200 萬美元，並且未償還信用證金額為 240 萬美元。

We do expect to repay the outstanding balance on the credit facility by the end of 2025, with free cash flow from operations barring any other major transactions.

我們確實希望在 2025 年底之前償還信貸額度的未償餘額，並且除任何其他重大交易外，將產生經營活動產生的自由現金流。

We've continued to be very active on our NCIB and on a year-to-date basis in 2025, we have purchased just over $1.4 million units at an average cost of $66.60 for a total consideration of $95.1 million. And I'll turn the call over to Kevan.

我們在NCIB方面一直非常活躍，截至2025年，我們已購買了價值略高於140萬美元的單位，平均成本為66.60美元，總對價為9510萬美元。接下來我將把電話交給Kevan。

Thanks, Teresa.

謝謝，特蕾莎。

As usual, keep my prepared comments brief, preferring, of course, to engage in dialogue during the question period.

像往常一樣，我準備的評論會簡短一些，當然，我更願意在提問環節進行對話。

As mentioned, results for the quarter came in slightly ahead of expectations, driven probably by FX gains and one-time items as Teresa highlighted.

如上所述，本季業績略高於預期，這可能是由於外匯收益和一次性項目所致，正如 Teresa 所強調的那樣。

I also think it's worthwhile at this point to elaborate on Teresa's comments regarding FFO and NOI moderating in the second quarter, just to say that the reduction was as expected and due to the timing of the expected move outs at the end of the first quarter or close to it, and the fact that the bulk of our renewal increases, which is a key driver of our same property and why growth in 2025, occurred late in the third quarter. Which of course should position as well for continued NOI growth into 2026.

我覺得現在有必要詳細解釋一下Teresa關於第二季度營運現金流（FFO）和淨營業利潤（NOI）放緩的評論。我想說的是，降幅符合預期，原因是預計的遷出時間在第一季末或接近第一季末，而且我們續約收入的大部分成長發生在第三季末，而續約收入的成長是我們同一物業業績的關鍵驅動因素，也是2025年業績成長的原因。這當然也為2026年淨營業利潤的持續成長奠定了基礎。

As a result, in Hawaiian FFO, we're expected to recover in the third and fourth quarters, and more importantly, we are maintaining our guidance on all target KPIs, including FFO and AFFO per unit as Theresa mentioned, same property and growth of 4.5% to 6%.

因此，在夏威夷的 FFO 方面，我們預計將在第三季和第四季復甦，更重要的是，我們維持對所有目標 KPI 的指導，包括 Theresa 提到的每單位 FFO 和 AFFO、相同的財產和 4.5% 至 6% 的成長率。

A renewal rate of 80% to 85% on our 2025, expires at a weighted average rate increase of 35% approximately, and committed vacancy of 95.5% and 96% at the end of the year.

我們 2025 年的續約率為 80% 至 85%，到期時加權平均利率將增加約 35%，年底的承諾空置率將達到 95.5% 至 96%。

I should also mention once again that one should not pay too much attention to the renewal increase related to expiries in a particular quarter.

我還應該再次提及，人們不應該過度關注與特定季度到期相關的續約增加。

The 10% increase was primarily driven by a contractual renewal increase at one of our US properties that we've actually discussed on previous calls. But as I have said, the increase can fluctuate significantly from quarter to quarter and does not necessarily signal a movement in the spread between market and in-place rents in the portfolio.

10%的成長主要是由於我們一處美國物業的續約費用增加，我們在先前的電話會議上已經討論過這一點。但正如我所說，該增幅可能在各個季度之間大幅波動，並不一定意味著投資組合中市場租金與實際租金之間的價差有所變動。

On that year-to-date, the team has renewed 78% of our 2025, expires at a weighted average increase of 48%, and as mentioned, we expect to achieve or exceed our guidance of 30% to 35% for 2025.

今年迄今為止，團隊已續約了 2025 年合約的 78%，到期加權平均增幅為 48%，如前所述，我們預計 2025 年將達到或超過 30% 至 35% 的預期。

As an update on the leasing markets, we don't yet have data on our European markets, but I can supply some key statistics in our North American markets. Dallas and Savannah led the US in net absorption in the first quarter at $4 and $3.9 million square feet respectively, and net absorption turned positive in the GTA at just over $2 million square feet.

關於租賃市場的最新情況，我們目前還沒有歐洲市場的數據，但我可以提供一些北美市場的關鍵統計數據。達拉斯和薩凡納在第一季的淨吸收量方面領先美國，分別為400萬美元和390萬美元/平方英尺；大多倫多地區的淨吸收量則轉為正值，略高於200萬美元/平方英尺。

Vacancy rates are up in roughly half of our markets and flat or slightly down in the others, and new supply is now close to historical low.

我們大約一半市場的空置率上升，其他市場的空置率持平或略有下降，新增供應量目前接近歷史低點。

Rental rate growth continued to be strongly positive in a number of our markets, including Nashville at 17%, Houston at 11%, Dallas and Chicago at 7%, and the largest year over year declines in market rates occurred in the GTA and Savannah at roughly 5% and 3% respectively.

我們多個市場的租金成長率持續強勁，其中納許維爾成長 17%，休士頓成長 11%，達拉斯和芝加哥成長 7%，而市場租金同比下降幅度最大的是大多倫多地區和薩凡納，分別下降了約 5% 和 3%。

Before I speak about strategy, I'm sure there will be questions on tariffs and the potential impact on our portfolio, which we're happy to answer and engage in a dialogue on the subject. But I did want to preface the discussion with a few comments on our portfolio and perhaps Magnet specifically, and we're really focusing on the Canadian part of our portfolio.

在談論策略之前，我相信大家肯定會問到關稅以及它對我們投資組合的潛在影響，我們很樂意解答這些問題，並就此展開討論。不過，我想先就我們的投資組合，特別是Magnet，談幾點看法，我們目前主要關注的是投資組合中的加拿大部分。

We have spoken with several tenants of various sizes, and I think a common theme we are hearing firstly is that there is not a firm understanding of the tariffs and their impact on businesses. And so most are continuing to operate their business in normal course and instead implementing minor changes to their operations to [preempt] the impact of tariffs where they can, and this particularly applies to smaller tenants.

我們與多家規模不同的租戶進行了溝通，我認為我們首先聽到的一個共同點是，他們對關稅及其對企業的影響缺乏清晰的認識。因此，大多數租戶仍在繼續正常運營，並在營運方式上進行了一些細微的調整，以盡可能降低關稅的影響，尤其是規模較小的租戶。

Magnet specifically, and as I think they discussed in their call, the complexity of the existing supply chain and the cost to increase or move capacity would be extremely significant and take years to implement.

具體來說，正如 Magnet 所討論的那樣，現有供應鏈的複雜性以及增加或轉移產能的成本將非常高，並且需要數年時間才能實施。

Conversely, we expect Magnet to continue to operate their Canadian business as they have and take any necessary steps to optimize their compliance with the customer arrangement.

相反，我們預計 Magnet 將繼續像以前一樣經營其加拿大業務，並採取一切必要措施來優化其對客戶安排的遵守情況。

One last comment on our magnet assets is to highlight the fact that we disposed of all of our magnet assets that were located in secondary markets in Canada. This included Windsor and Woodstock over the past few years.

關於我們的磁力資產，最後要強調的是，我們已出售所有位於加拿大二級市場的磁力資產，包括過去幾年的溫莎和伍德斯托克。

Our existing magnet assets are all located in prime nodes in the GTA market, including Branson, Mississauga, Vaughn, and Milton, and we believe would remain in demand if magnet were ever to choose not to renew their lease.

我們現有的 Magnet 資產均位於 GTA 市場的黃金節點，包括布蘭森、密西沙加、沃恩和米爾頓，我們相信，即使 Magnet 選擇不續租，其需求仍將持續。

I'll end my prepared comments on strategy, we now plan to be active on the capital allocation front.

我將結束對策略的準備好的評論，我們現在計劃積極進行資本配置工作。

In addition to funding our Houston development project, as Teresa mentioned, we have repurchased roughly $1.4 million Granite units for $95 million in financial consideration, and we expect to continue to be active on our NTIV program.

除了為我們的休士頓開發項目提供資金外，正如 Teresa 所提到的，我們還以 9500 萬美元的財務對價回購了價值約 140 萬美元的 Granite 單位，並且我們希望繼續積極開展我們的 NTIV 計劃。

The team has also identified two acquisition opportunities in our current target markets in the US and Europe, totaling roughly $100 million Canadians.

該團隊還在美國和歐洲的當前目標市場中發現了兩個收購機會，總額約為 1 億加拿大元。

And to fund this potential deployment, we have identified roughly $100 to $200 million in disposition targets in Canada, the US, and Europe that we will be focusing on over the next few quarters.

為了資助這項潛在部署，我們已經確定了在加拿大、美國和歐洲約 1 億至 2 億美元的處置目標，我們將在接下來的幾個季度中重點關注這些目標。

And on that operator I will open up the line for question.

我將透過該接線員開通熱線來回答問題。

Thank you, sir.(Operator Instructions).

謝謝您，先生。 （操作員指示）。

And your first question will be from Mark Rothschild at Canaccord. Please go ahead, Mark.

第一個問題來自Canaccord的Mark Rothschild。請提問，Mark。

Thanks. Good morning everyone.

謝謝。大家早安。

Kevan, you get some comments about the impact of tariffs and capital location strategy. I'm just curious to what extent are you thinking about the different regions you operate in differently with what has changed the world, particularly over the past couple of months.

凱文，你對關稅和資本配置策略的影響發表了一些評論。我只是好奇，你對不同地區營運模式的不同看法，以及世界變化（尤其是過去幾個月的變化）的程度如何？

It's a great question, Mark, and I don't think that tariffs are going to have I would say.

馬克，這是一個很好的問題，我不認為關稅會產生什麼影響。

A very large view in the long term of where we're looking to invest, for example, the GTA is one of our largest single markets, if not the single largest market in our portfolio. We would like to continue to grow in this market, but I think being patient and understanding what the final view of tariffs looks like makes some sense, and as we look out.

我們從長遠角度考慮投資方向，例如，大多倫多地區（GTA）是我們投資組合中最大的單一市場之一，甚至可以說是最大的單一市場。我們希望在這個市場繼續成長，但我認為，耐心等待，並了解最終的關稅方案是明智之舉，我們拭目以待。

Putting money out the door, I think we have this market in Canada, which is the target market for us. We have select markets in the US and select markets in Europe. So we'll continue to monitor the situation, but I don't think terrorists themselves will have a material impact on the long-term view of assets and markets.

說到投資，我認為我們在加拿大有這個市場，這是我們的目標市場。我們在美國和歐洲都有一些精選市場。因此，我們會繼續關注局勢，但我認為恐怖分子本身不會對資產和市場的長期前景造成實質影響。

Okay great thanks. And maybe just one more, there is a natural hedge to the foreign exchange when you have mortgages on the specific properties and there have been times when it's been very advantageous to have the debt in Europe. I'm just curious with the currency having, it's been maybe more volatile of late over the past year or so, do you think differently about the way you approach hedging the income that you generate in different regions.

好的，非常感謝。再問一個問題，當你對特定房產進行抵押貸款時，外匯風險可以得到自然對沖，有時在歐洲持有債務非常有利。我只是好奇，考慮到貨幣匯率，過去一年左右，它的波動性可能更大，您對在不同地區對沖收入的方式有何不同看法？

Mark, I don't really think so. I think like we've always taken the view that we will seek out the lowest cost of debt and place debt there, and that's why we've maximized certainly our European-based debt. Europe still is our lowest cost option of about like 40 basis points relative. To Canada, so I think that is sort of the main driver as opposed to trying to get a pure hedge of assets versus debt. So we'll always just seek out the US right now is much more costly than Canada. So and we've maxed out in Europe. So any incremental, at least today, barring any new investment in Europe, we would probably borrow in Canadian.

馬克，我不這麼認為。我們一直認為，我們會尋找成本最低的債務，並在那裡投資，這就是為什麼我們最大化了在歐洲的債務。歐洲仍然是我們成本最低的選擇，相對成本約低40個基點。所以，我認為，相對於加拿大，這才是主要驅動力，而不是試圖進行純粹的資產對沖和債務對沖。所以我們總是會尋找美國，因為美國的成本現在比加拿大高很多。我們在歐洲的債務已經達到了極限。所以，任何增量，至少在目前，除非在歐洲有任何新的投資，我們可能都會在加拿大借款。

Okay, great, thanks so much.

好的，太好了，非常感謝。

Thank you.

謝謝。

Next question will be from Sam Damiani at TD Cowen. Please go ahead, SAM.

下一個問題來自TD Cowen的Sam Damiani。請繼續，SAM。

Well thank you very much.

非常感謝。

I just to follow on Mark's question there on the sort of geographic preferences in this in this new post-tariff world we're in, I'm just curious, Kevan, what is the, I guess the base assumption that you're making to not change your geographic sort of strategy at this time?

我只是想繼續馬克的問題，關於我們所處的這個新的後關稅世界中的地理偏好，我只是好奇，凱文，我猜你現在不改變地理戰略的基本假設是什麼？

Well, I think It depends on the on the assets that you're looking to acquire and if you're you're asking if we felt like a business was exponentially exposed to tariffs, I think we'd have to take that into account as we're making an investment decision, Sam.

嗯，我認為這取決於你想要收購的資產，如果你問我們是否覺得一家企業受到關稅的影響呈指數級增長，我認為我們在做出投資決策時必須考慮到這一點，薩姆。

But I think as we look at long term in these markets and the viability and how they're going to perform, so say for example we look at Canada. Do we believe that Toronto is going to the Toronto market is going to suffer in the long term from this and thereby the growth prospects would be lower and it would be something we wouldn't look at investing in. It's part of the decision, but I don't think we're there where we think that this market is going to be permanently damaged by terrorists. We don't even know what exactly the end game is going to look like here. So it's something we take into account. But the point I'm trying to make is long term we believe these markets are going to continue to perform well, and we wouldn't discount them materially because of a short term shock from potential tariffs if that answers the question, Sam? Yeah.

但我認為，當我們著眼於這些市場的長期發展、可行性以及它們未來的表現時，例如我們看看加拿大。我們是否認為多倫多市場長期來看會受到衝擊，導致成長前景低迷，我們不會考慮投資它？這的確是決策的一部分，但我不認為這個市場會被恐怖分子永久摧毀。我們甚至不知道最終結果會是什麼樣子。所以這是我們會考慮的因素。但我想說的是，從長遠來看，我們相信這些市場將繼續表現良好，我們不會因為潛在關稅帶來的短期衝擊而大幅低估它們，如果這能回答這個問題的話，山姆？是的。

Well, that's helpful.

嗯，這很有幫助。

Thank you. And just on the guidance, there's obviously, some minor moving parts here, but just curious.

謝謝。就指導而言，顯然這裡存在一些細微的變化，但我只是好奇。

Is there a way you can quantify the change in timing of the lease up that was sort of baked into the end result of leaving guidance unchanged?

有沒有辦法可以量化租賃時間的變化，而這種變化已經融入到維持指導不變的最終結果中？

I don't think anything really changed. We were expecting this, so I think we mentioned on the, I can't remember if we mentioned it specifically on the last call, but we said 80% to 85%, so we were expecting 10%, 15% to 20% to come back.

我認為沒有什麼真正改變。我們預料到了這一點，所以我記得上次電話會議上我們提到過，我不記得我們是否具體提到過，但我們說的是80%到85%，所以我們預計會有10%、15%到20%的恢復。

We were expecting this in the timing and so this is the end of the first quarter and early in the second quarter we have to move out. That was expected. And the rate increases that have been baked into it don't occur until the third quarter and frankly late in the third quarter. So this was expected and I don't think it's anything's changed, and that's why we're maintaining our guidance.

我們預料到了這種情況，所以現在應該是第一季末，第二季初，我們必須撤離。這是預料之中的。而已經考慮到的升息要到第三季才會發生，坦白說，是在第三季末。所以這是預料之中的，我認為情況不會有任何改變，這也是我們維持預期不變的原因。

Okay, great. And just last one for me is those two acquisitions you mentioned, are they land or income properties, is there any other color you can provide on those two opportunities?

好的，太好了。最後一個問題，您提到的那兩項收購，是土地還是收益性房產？您能為這兩個機會提供一些其他資訊嗎？

Not too much color but both are income producing properties, believe it or not.

雖然顏色不太鮮豔，但不管你信不信，兩者都是能產生收入的財產。

Okay, thank you. I'll turn it back.

好的，謝謝。我會退回去。

Thank you.

謝謝。

Next question will be from Fred Blondeau at Green Street. Please go ahead, Fred.

下一個問題來自 Green Street 的 Fred Blondeau。請繼續，Fred。

Thank you and good morning.

謝謝，早安。

Kevan, just looking at your 2025, SPNY guidance, 4.56%, can you remind us how you would qualify US, Europe, Austria, and Canada's expected contribution from here?

凱文，僅看一下您對 2025 年 SPNY 的指導，即 4.56%，您能否提醒我們您如何限定美國、歐洲、奧地利和加拿大的預期貢獻？

I don't think we spell that out, Fred, so and I'm not going to, at this time.

弗雷德，我認為我們不會明確說明這一點，所以，目前我也不會這樣做。

That fair enough, but can you tell us, where do you see occupants in the US heading from here?

這很公平，但是您能告訴我們，您認為美國居民的未來走向如何嗎？

--You know what, maybe I should have that, but I think 95.5% and 96% overall by the end of the year, I think we would expect Canada to be around 98.5%, 99%, 98%. We expect Europe to be in a sort of 98% to 99%. So I, if you do the math, I think the US would probably be in that sort of 93% to 94% by the end of the year.

——你知道嗎，也許我應該這麼說，但我認為到今年年底，總體來看，如果達到95.5%和96%，那麼我們預計加拿大的覆蓋率應該在98.5%、99%和98%左右。我們預計歐洲的覆蓋率應該在98%到99%之間。所以，如果你算一下，我認為到今年年底，美國的覆蓋率可能會達到93%到94%。

Got it. Yeah, absolutely. And last one for me just in regards to your comments on Canada, what would be your scenario in regards to larger data tenants for 2025? Do you feel like we could start seeing, demand improving sometime this year, or, it would still be a bit premature, not with standing the tariffs, of course.

明白了。是的，完全正確。最後一個問題，關於您對加拿大的評論，您對2025年大型數據租戶的前景有何展望？您覺得我們能在今年某個時候開始看到需求改善嗎？或者，現在就下結論還為時過早，當然，這還不包括關稅。

Yeah, if you're talking about Canada specifically, I think it's a fair question. I think there were some large requirements that were in the market in the GTA market earlier in the year, and I think they were put on pause because of the tariff. So I would say I don't think in the end, I don't think a lot, I think that those requirements will resurface, but at the end of the day, I think it's really the uncertainty around the tariffs which is the greatest impediment right now. So, and I think that there will be, I'm not sure how much opportunity, but certainly businesses will adapt and there may be some opportunities that come out of the new regime in certain markets like the GTA. So I expect demand in the large day to resurface, maybe in the second half of this year, maybe in early 2026, once we have greater certainty on what the new rules are.

是的，如果你具體指的是加拿大，我認為這個問題問得挺有道理。我認為今年早些時候大多倫多地區（GTA）市場有一些大型項目要求，但這些要求因為關稅而被擱置了。所以我認為最終這些要求不會，我認為不會太多，會重新出現。但歸根究底，我認為圍繞關稅的不確定性才是目前最大的障礙。所以，我認為未來會有，我不確定有多少機會，但企業肯定會適應，而且在某些市場，例如大多倫多地區，新政策可能會帶來一些機會。所以我預計，大型專案的需求會重新出現，也許是在今年下半年，也許是在2026年初，等我們對新規則有了更清​​晰的了解之後。

That's great. Fair enough.

太棒了，挺公平的。

Thank you.

謝謝。

Thank you.

謝謝。

Next question will be from Himanshu Gupta. Please go ahead.

下一個問題來自 Himanshu Gupta。請提問。

And good morning. For Q2 expected, vacancies in Atlanta and Indianapolis, what is the GLA or NOI associated with these vacancies, and then when do you expect to backfield, this space?

早安.預計第二季亞特蘭大和印第安納波利斯的空房數量是多少？這些空房對應的GLA（總可出租面積）或NOI（淨營業收入）是多少？您預計什麼時候能恢復這些空房？

So I would just say it's roughly 750,000 in total between the two, I don't want to get into specifics on the buildings on one of them we actually have a pretty active prospect on and actually we have an active prospect on both of those. I don't have timing for you on the releasing, but I would say we're encouraged by the activity on both of them. We are in discussions with the prospects on both spaces as we speak.

所以我想說，這兩個地塊加起來大約有75萬平方英尺。我不想談論其中一個地塊的具體建築，實際上我們對其中一個地塊的前景非常樂觀，而且實際上我們對這兩個地塊的前景也非常樂觀。我無法透露具體的發佈時間，但我想說，我們對這兩個地塊的積極活動感到鼓舞。我們正在與這兩個地塊的潛在客戶進行洽談。

Okay, thank you. And then, I'm sticking to leasing, for new leasing of the vacant space. I mean, where are we in the process, and do we still expect, some leasing done in the second half of this year?

好的，謝謝。然後，我繼續討論租賃，也就是空置空間的新租賃。我的意思是，我們現在進展到什麼程度了？我們是否仍預計今年下半年會有一些租賃完成？

Yeah, like I said, we are maintaining our guidance for occupancy to the end of this year, and I think that's based on the activity that we're seeing right now. I mean, the team is working on leases on just over a million square feet right now, of various sizes and various markets. And so we're pretty encouraged by the activity we're seeing and on the other availabilities, we are encouraged by the number of tours and leasing activity in general. So. I would say I would just point to our, maintaining our guidance for occupancy at the end of this year based on the activity that we're experiencing our assets and our availabilities in the markets in the US.

是的，就像我說的，我們維持到今年年底的入住率預期，我認為這是基於我們目前看到的活動。我的意思是，我們的團隊目前正在處理超過一百萬平方英尺的租賃，這些租賃面積大小各異，來自不同的市場。因此，我們對看到的活動感到非常鼓舞，至於其他可用情況，我們對參觀數量和整體租賃活動感到鼓舞。所以，我想說的是，根據我們資產的活躍程度以及我們在美國市場的可用情況，我們維持到今年年底的入住率預期。

Got it. Okay, that's helpful.

明白了。好的，這很有幫助。

And then I think, Austria, some these renewal got done for 2026, with Magna. Maybe can you elaborate and any discussions with Magna on the European footprint? I mean, any facilities, closures.

然後，我想，奧地利已經與麥格納合作完成了2026年的工廠更新工作。您能否詳細說明一下，以及與麥格納就歐洲工廠佈局進行過哪些討論？我的意思是，包括工廠關閉等。

Now, in 2026, it was a planned renewal. -I think their notice date was in the first quarter, so that has been renewed in Austria. That's 300,000 ft, and then I think as you can see there was an early renewal on a tenant in the US, 250,000 ft that I think we did a few quarters ago.

現在，這是2026年的計畫續約。 -我記得他們的通知日期是在第一季度，所以在奧地利已經續約了。那是30萬平方英尺。然後，我想正如你所看到的，美國的一個租戶提前續約了，25萬平方英尺，我記得我們幾個季度前就完成了。

So now I think we have renewed roughly 10% of our 2026, expire one in the US and one in Europe. And the one in Europe adds to your question was a magnet facility, and I will point out we actually had a decent sized magnet renewal in the GTA that was exercised, I think at the end of March, I think it was March 31 or something like that. So the 2025, expires related to magnet and the GTA have been both, I think both of those have been renewed.

所以現在我認為我們已經續簽了大約10%的2026年到期的貸款，其中一份在美國到期，另一份在歐洲到期。歐洲的那份貸款補充了你的問題，是磁鐵貸款。我要指出的是，我們實際上在大多倫多地區（GTA）進行了一筆規模相當大的磁鐵續期，我記得是在3月底，也就是3月31日左右。所以，我認為與磁鐵和大多倫多地區相關的2025年到期的貸款都已經續約了。

Got it. Okay, thank you. Last question is on capital allocation. I think you mentioned disposition of $100 to $200 million dollar assets. How did you select your, target disposition assets? I mean, are there some certain type of assets or certain markets there, and will you consider some manual assets as well for this position?

明白了。好的，謝謝。最後一個問題是關於資本配置的。我記得您曾提到處置1億到2億美元的資產。您是如何選擇目標處置資產的？我的意思是，是否有特定類型的資產或特定的市場？您是否也會考慮一些手動資產來應對這個職位？

I think Magnet would be part of it. I don't know if it's a major part of it, but certainly a part. We have non-core assets, it's quite a list of non-core assets that everyone would have in their portfolio. When you think about it, anything that does not match your strategy moving forward, your investment strategy is probably non-core.

我認為Magnet會是其中的一部分。我不知道它是否佔了主要份額，但肯定是。我們有一些非核心資產，每個人的投資組合中都會有相當多的非核心資產。想想看，任何與你的未來策略不符的資產，你的投資策略可能都是非核心的。

And so for us we've identified and part of this gets back to really the use of proceeds. We've already deployed almost $100 million to the NCID so far this year, and so we've identified clear strategic, and in many ways very accretive use of proceeds that we could be putting $200 million to $250 million maybe $300 million at the door this year.

所以對我們來說，我們已經確定了部分資金用途，這部分資金其實與收益的用途有關。今年到目前為止，我們已經向NCID投入了近1億美元，因此，我們已經確定了明確的策略性、在許多方面都非常具有增值性的收益用途，我們今年可能會投入2億到2.5億，甚至3億美元。

And so unless we decided to use our balance sheet, which is what we don't want to do really, we're willing to use it in the short term, but to trace this point of free cash flow, it is our expectations we'll be able to pay that off in a short period of time. So it looks like rebalancing would be the best move for us. So there's a number of assets that we feel are not core to our strategy moving forward, and I think we'll be able to dispose of both in Canada and the US and also also in Europe.

因此，除非我們決定動用資產負債表（這其實我們並不想這麼做），否則我們願意在短期內使用它，但為了追蹤自由現金流的這個點，我們預計能夠在短時間內還清債務。因此，看起來重新平衡對我們來說是最好的選擇。我們認為有些資產並非我們未來策略的核心，我認為我們可以在加拿大、美國以及歐洲處置這些資產。

Okay. And have you already put some of these assets in the market? I mean, any sense of like how the pricing could out to be there? I mean, in line with in.

好的。您已經把這些資產投入市場了嗎？您覺得最終的定價會是怎麼樣？是按照內部定價嗎？

The most part, in the most part we're still early days, but it's not uncommon in our sector if you have an asset, that is non-core and goes vacant that you listed for sale or lease. We've done that like our two availabilities in the GTA are listed for sale or lease, I believe. And so it could depend on who services first, the new tenant or or buyer of the asset at the right price. So that's very common in our sector. So that's one way. Another one is just looking at assets that are truly non-core or not performing well or we don't think we'll have the right return profile moving forward. Those are all assets we would identify for disposition, and listen.

在很大程度上，我們仍然處於早期階段，但在我們的行業中，如果你擁有一項非核心資產，並且該資產處於空置狀態，你就會將其掛牌出售或出租，這種情況並不少見。我們曾經這樣做過，例如我們在大多倫多地區的兩處空置物業，我記得就掛牌出售或出租。所以，這可能取決於誰先提供服務，是新租戶還是以合適的價格購買該資產的買家。這在我們行業中很常見。這是一種方式。另一種方式是只專注於那些真正非核心的資產，或是那些表現不佳的資產，或是我們認為未來不會有合適的回報狀況的資產。這些都是我們會確定要處置的資產，請聽聽意見。

$100 million to $200 million, I think is kind of our expectation. It could grow, depending on the sort of demand that we see in the market, and it will also depend on how How much capital and how swiftly we deploy that capital as well so that will also impact the timing I think.

1億到2億美元，我想這是我們的預期。這個數字可能會成長，這取決於我們在市場上看到的需求，也取決於我們投入的資金規模以及部署速度。所以我認為這也會影響時間安排。

Got it, thank you. And sorry, one just last question here, and I know you know you already responded on the tariff question there. Do you have any exposure to Asian, 3PLs in your US portfolio?

明白了，謝謝。抱歉，我還有最後一個問題，我知道你已經回答了關稅問題。你的美國投資組合中是否有亞洲第三方物流（3PL）的曝險？

Very few. I think we've got one in Houston that I know of, so I would say it would be less than 2% of our US portfolio.

很少。我記得我們在休士頓有一家，所以我覺得它占我們美國投資組合的2%以下。

Awesome. Okay, thank you guys and I'll turn it back.

太棒了。好的，謝謝大家，我會回覆的。

Thank you.

謝謝。

Thank you.

謝謝。

Next question will be from Brad Sturgis at Raymond James. Please go ahead.

下一個問題來自雷蒙德詹姆斯公司的布拉德斯特吉斯。請提問。

Hey there. Just pulling on the lines of the capital recycling, just I guess as you execute on this plan, how do you think about it from like a cash flow perspective, I guess you've identified a few different uses with that, the combination of the NCIB development and acquisitions, would that ultimately be neutral or [aretive], potentially the cash flow, depending on how that sort of shakes out in terms of the allocation weightings or how should we think about the impact, at least initially.

嘿，我只是在談論資本循環，我想當你執行這個計劃時，你從現金流的角度是怎麼考慮的？我想你已經確定了它的幾種不同用途，例如NCIB開發和收購的結合，最終會是中性的還是有潛力的？可能是現金流，這取決於它在分配權重方面如何變化，或者我們應該如何看待它的影響，至少在初期是如此。

I would put it, I would put, I mean, we're using the line of credit as needed for the NCIB and then we'll pay down the line of credit as as capital becomes available.

我想說的是，我想說的是，我們正在根據需要為 NCIB 使用信用額度，然後我們會在資本到位時償還信用額度。

But in terms of, I think where you're going, and correct me if I'm wrong, Brad is, we're selling assets at a certain yield and buying assets at a certain yield, and I would say, this way I'm not suggesting that it would be a creative. I think we are willing to accept some dilution.

但就布拉德而言，我想你的意思（如果我錯了請糾正我），我們以一定的收益率出售資產，也以一定的收益率購買資產，我想說，這樣我並不是說這會是一種創意。我認為我們願意接受一定程度的稀釋。

To move into the markets and rebalance the portfolio in the way that we want, we are not right now as we sit here today, we do not think that this will impact our guidance. We really don't think so.

我們現在還沒有進入市場，也沒有按照我們想要的方式重新平衡投資組合，我們認為這不會影響我們的預期。我們真的不這麼認為。

And so I think that's a very positive story, to be H1 with you, to be able to rebalance the portfolio and continue to grow the way that we are, and I think that's what gives us confidence to go through this. But I don't have a level of accretion or frankly specific solution to give you on on that if that's what you were looking for.

所以我認為這是一個非常積極的故事，能夠和你們一起取得上半年業績，能夠重新平衡投資組合，並繼續保持目前的成長方式，我認為這給了我們信心去度過難關。但如果這正是你想要的，我無法提供具體的成長水平或坦率的解決方案。

Yeah, no, I think that's that's the question I have in terms of just maybe thinking about the interplay between the average blended cap right exit and going in, and just maybe when you're thinking about the rebalancing and you think about what's non-core, what could go into that pocket, what I guess what factors are driving that ultimate decision right now.

是的，不，我想這就是我的問題，也許只是在思考平均混合上限退出和進入之間的相互作用，也許當你考慮重新平衡時，你會思考什麼是非核心的，什麼可以進入那個口袋，我猜是什麼因素在推動現在的最終決定。

Well, if there are assets that are legacy or otherwise that are in our portfolio, we wouldn't buy today. Those would be deemed non-core, and I think you could sort of see what those are. There also could be concentration, right? So we're looking to potentially lower concentration in a certain market and redeploy it in a new market. That would also be a consideration as well for us, and I think that these are all normal things. I hope other companies are talking about this too because we're always looking to do that and let's to get back to some earlier comments I think I've made over the years is when we first wrote the strategy in 2018, we identified key key top markets, primary markets, and secondary markets that we want to be in, and we, understood well that we have a cost of capital and we're limited somewhat into what markets we can go in and how much we can deploy in those specific markets.

嗯，如果我們的投資組合中存在遺留資產或其他資產，我們今天就不會買入。這些資產將被視為非核心資產，我想你應該能理解它們是什麼。也可能有集中度問題，對吧？所以，我們希望降低在特定市場的集中度，並將其重新部署到新的市場。這對我們來說也是一個考慮因素，我認為這些都是正常現象。我希望其他公司也在討論這個問題，因為我們一直在尋求這樣做。讓我們回顧一下我多年來一直強調的一些觀點：在2018年我們首次製定策略時，我們確定了我們想要進入的關鍵頂級市場、一級市場和二級市場。我們很清楚，我們的資本成本是固定的，而且我們在進入哪些市場以及在這些特定市場中可以部署多少資金方面受到一定限制。

The idea always was as we sort of grew and hopefully achieved a certain cost of capital, we would be able to continue to migrate into the primary markets, and I think where we are today is maybe we don't have the equity cost of capital to do that, but I think we have a very strong growth profile and return profile that will enable enable us to use rebalancing to move more into the primary markets that we're targeting. And dispose of certain assets in the secondary market. So that's what we're really talking about here, and I think we have the, a very strong growth problem with which to play with.

我們的想法一直是，隨著我們逐漸發展壯大，並有望達到一定的資本成本，我們就能繼續進入一級市場。我認為，我們目前的狀況是，我們可能沒有足夠的股權資本成本來實現這一點，但我認為我們擁有非常強勁的成長前景和回報，這將使我們能夠利用再平衡策略，更多地進軍我們瞄準的一級市場，並在二級市場出售部分資產。所以，這才是我們真正要討論的，我認為我們面臨著一個非常嚴峻的成長問題，需要我們解決。

Great, I appreciate that, the color. Thanks a lot. I'll turn it back.

太好了，我很喜歡這個顏色。非常感謝。我會把它退回去。

Thank you.

謝謝。

Next question will be from [Mike Marquez at Bmo Capital Markets]. Please go ahead, Mike.

下一個問題來自蒙特婁銀行資本市場的 Mike Marquez。請繼續提問，麥克。

Thank you, operator. I guess there was a lot of discussion earlier just on large requirements, GTA specifically, Kevan, I think you mentioned a team working on a million square foot new lease pipeline today. I'm curious in the US how that has changed versus maybe six months ago and just given the nature of we've been in this environment of, tenants delaying decisions, what gives you guys confidence that lifts by the end of this year.

謝謝接線生。我想之前有很多關於大宗需求的討論，特別是GTA。 Kevan，我記得你今天提到了一個團隊正在開發一百萬平方英尺的新租賃專案。我很好奇，與六個月前相比，美國的情況發生了什麼樣的變化？考慮到我們目前所處的這種環境，租戶推遲了決策，是什麼讓你們對今年年底的業績充滿信心？

I'm not sure I was talking about millions square footers, but just to, for example, like in the US, obviously there are markets we pay more attention to and monitor more closely than others, but for example, we look at Indianapolis.

我不確定我是否談論的是數百萬平方英尺的面積，但舉例來說，就像在美國一樣，顯然有些市場我們會比其他市場更加關注和密切監控，但例如，我們關注的是印第安納波利斯。

The last sort of market updates that we did and that we went through, there are almost 50 new requirements in the market representing $16 million ft, which is above where it was last year, so that's picking up. And of those, there are five requirements that we believe are at or above a million feet. So they are coming back E-commerce is coming back and returning to the market. In terms of the decision making, I really would caution in our US portfolio, I would really caution about terrorists causing this, --I wouldn't say this. It's not terrorist specifically. But I think in terms of uncertainty, yes, we believe it is impacting decision making, but that decision making was already taking a long time and we're not seeing a How would I put it, we're not seeing that becoming more intense or from from the tariffs. I just think decision making has been slow. Tenants continue to be cautious. Maybe this is another reason for them to be cautious, but activity has been strong and we are seeing, I think a lot more, I wouldn't use the word urgency.

我們最近進行的市場更新顯示，市場上新增了近50個需求，總面積達1,600萬美元，高於去年的水平，所以市場正在回升。其中，我們認為有5個需求達到或超過了100萬平方英尺。所以它們正在回歸。電子商務正在回歸，重返市場。在決策方面，我非常需要警惕我們在美國投資組合中的投資，我非常擔心恐怖分子會造成這種情況——我不會這麼說。並非特指恐怖分子。但我認為，就不確定性而言，是的，我們認為它正在影響決策，但決策本身已經耗時很長，而且我們並沒有看到任何變化。怎麼說呢，我們沒有看到這種情況變得更加劇烈，也沒有看到關稅帶來的變化。我只是認為決策過程比較緩慢。租戶仍然保持謹慎。也許這是他們保持謹慎的另一個原因，但活動一直很活躍，而且我們看到，我認為，更多的，我不會用「緊迫感」這個詞。

But I think the tenants that we're dealing with right now, the prospects that we're dealing with have been very purposeful in terms of the discussions and negotiations that we're having with them in the US.

但我認為，就我們在美國與租戶進行的討論和談判而言，我們現在所面對的租戶、我們所面對的潛在客戶都是非常有目的性的。

Okay, thanks for that. And just to clarify, I wasn't talking about a million square foot assets specifically. I think you had mentioned you're working on a million square feet of new leases I was curious how that compares to your pipeline of new lease discussions 3 to 6 months ago.

好的，謝謝。需要澄清的是，我指的不是百萬平方英尺的資產。我記得您提到過，您正在洽談百萬平方英尺的新租約。我很好奇，這與你們3到6個月前洽談的新租約相比如何。

Right, well, it, it's certainly I would say is probably twice as high as it's been in previous quarters.

好的，嗯，我肯定會說這可能是前幾季的兩倍。

Okay. You also talked about, just in response to the tariff question, you talked about your magnet exposure and looked at the GTA and talked about how you sold out the secondary assets and had confidence in the remaining assets, how would you think about the European footprint?

好的。您剛才在回答關稅問題時也提到了您的磁鐵業務，以及對GTA的看法，也提到了您如何出售二級資產，並對剩餘資產充滿信心，那麼您如何看待歐洲業務？

I think with respect, if you're asking with respect to tariffs, we don't think that it's going to have it is having or it's going to have a big impact on our European portfolio. So I think it's a completely different story and frankly listening to some of Magnus's comments, I think they feel that the future of the European portfolio is is good. So I don't think we see the European portfolio, any particular change happening with our assets within the portfolio.

我認為，就關稅而言，我們認為它不會對我們的歐洲投資組合產生重大影響。所以我認為這完全是另一回事。坦白說，聽了馬格努斯的一些評論，我認為他們認為歐洲投資組合的未來是美好的。所以我認為我們歐洲投資組合中的資產不會有任何特別的變化。

Okay, that's.

好的，就這樣。

That's very helpful. Thanks. We'll turn back.

這很有幫助。謝謝。我們會回去的。

Thank you.

謝謝。

Next question will be from Kyle Stanley at Deja. Please go ahead, Kyle.

下一個問題來自 Deja 的 Kyle Stanley。請問，Kyle。

Thanks, morning everyone kind of just building on Mike's line of questioning there, but can you talk about maybe how differently or similarly, your tenants across the various geographies are looking at making leasing decisions today in in this environment, or would you say it's less of a geographic issue and more of a, the end business with the tenants in or or the size of the business that's driving decisions at this point?

謝謝，早安，大家好，我剛剛回答了 Mike 的問題，但是您能否談談，在這種環境下，不同地區的租戶在做出租賃決策時有何不同或相似之處？或者您認為這不是一個地理問題，而是與租戶相關的最終業務或業務規模問題，這些因素正在推動決策？

I think it, I would think that it's more the latter. I think, but to be fair, Kyle, I mean we don't have a lot of availability in Europe and I think our, as you can see, our renewal rates continue to be very high, and I think definitely demand has slowed down in Europe, for example, as it has sort of in every market, but it's been steady and rent growth continues to be particularly, I think, strong on a relative basis anyway. I think it does come down to the specific business and the tendency more than it does to geography.

我認為，我認為更可能是後者。不過，凱爾，公平地說，我們在歐洲的房源不多，而且正如你所見，我們的續租率仍然很高，而且我認為歐洲的需求肯定有所放緩，就像每個市場的情況一樣，但總體來說，需求保持穩定，而且租金增長相對強勁。我認為這更多地取決於特定的業務和趨勢，而不是地理位置。

Okay, thank you for that and maybe just one other one, obviously you mentioned kind of throughout the commentary today that the lease renewals for this year really kind of a weighted towards Q3.

好的，謝謝你，也許還有另一個問題，顯然你在今天的評論中提到，今年的租約續約確實有點偏向第三季。

Can you disclose what percentage of those renewals coming online are are weighted to the third quarter?

您能否透露一下，在線上續訂的數量中，有多少比例集中在第三季？

On a weighted basis, it's very much in the third quarter.

從加權計算來看，第三季的佔比很大。

Yeah, and the end of the third quarter.

是的，第三季結束了。

Okay, so fourth quarter is when we really see the benefit.

好的，第四季我們才真正看到好處。

Got it. Okay, thank you For that.

明白了。好的，謝謝你。

Thank you. Again, if you would like to ask a question, please press star and the number one on your telephone keypad.

謝謝。如果您想提問，請按電話鍵盤上的星號和數字1。

And your next question will be from Pammy Burr at RBC Capital. Please go ahead, Pammy.

下一個問題來自加拿大皇家銀行資本管理公司的 Pammy Burr。帕米，請繼續。

Thanks everyone.

謝謝大家。

Just Kevan, just coming back to the commentary around acquisitions and the outlook there, what's changed in your mind in terms of maybe being more active, the NCIB makes sense, but in terms of actual assets, are you seeing more opportunities, maybe some dislocation in prices in certain markets, certain types of assets just what can you share on that?

凱文，回到關於收購和前景的評論，您認為在可能更加積極方面有什麼變化，NCIB 是有道理的，但就實際資產而言，您是否看到了更多機會，也許某些市場、某些類型資產的價格出現了一些錯位，您能分享一下嗎？

I would say I think we are more comfortable with pricing in those key markets today than we've been in the past few years, Tommy, and also I think the spread.

我想說的是，與過去幾年相比，我們對今天這些關鍵市場的定價更加滿意，湯米，我認為價差也更大。

The spread between yields that we're seeing in our existing markets versus the yields in the markets that we've been targeting are probably at their lowest or closer to the lowest that we've seen that we think it's a pretty opportune time to start deploying capital in those in those new markets.

我們在現有市場中看到的收益率與我們所瞄準的市場中的收益率之間的差距可能處於最低水平或接近最低水平，我們認為現在是開始在新市場中部署資本的絕佳時機。

If that answers the question.

如果這回答了問題。

Yeah, no, that's helpful.

是的，不，這很有幫助。

Okay. And then just coming back to those vacancies in Atlanta and Indianapolis, just can you comment on where the in-place rents are relative to market? And I guess at this point it kind of seems like the commentary would suggest that these are probably more 2026, releasing likelihood.

好的。然後回到亞特蘭大和印第安納波利斯的空房問題，您能否評論一下，目前租金相對於市場水平如何？我猜，目前的評論似乎表明，這些情況可能要到2026年才能公佈。

It could be. I, yeah, I'm not close enough to the leasing decisions themselves to know what the timing of the of the new leases would be, but in terms of the rents, I think that these would be sort of 10% to 15% below market.

有可能。是的，我對租賃決策本身了解不夠，所以我不知道新租約的具體時間。但就租金而言，我認為會比市價低 10% 到 15%。

Okay, any update on Veteran's Way in terms of the prospects there?

好的，關於 Veteran's Way 的前景有什麼最新消息嗎？

Sorry, say Again.

抱歉，再說一次。

Any update on the prospects on the Indianapolis properties that veterans?

關於退伍軍人在印第安納波利斯的房產前景有什麼最新消息嗎？

I would just say that there are prospects on both.

我只想說兩者都有前景。

We are probably in more advanced discussions on smaller building right now than the newer one, and I would say on, the larger one, not the newer one, there's been more activity for half the building, i.e. that 300 to 400,000 range. And there has been on on the entire building and that's a little different than in previous quarters and that could change in future quarters, but that's what we're seeing today.

目前，我們討論的小型樓盤可能比新建樓盤更深入。我想說，大型樓盤（而不是新建樓盤）的一半樓盤（即30萬到40萬平方英尺的樓盤）的開發活動更多。而整棟樓盤的開發活動也更多，這與前幾季略有不同，未來幾季可能會有所變化，但這就是我們今天看到的情況。

Got it. Last one just on the true value lease assumption by do it best, any changes there in terms of, the total space that they're taking or any of the any concessions made on the rent?

明白了。最後一個問題是關於「盡力而為」的真實價值租賃假設，他們佔用的總面積方面有什麼變化嗎？或是在租金方面有什麼優惠嗎？

No, there was a minor concession in the first two years and a sort of a recovery in later years, so the economics of the deal over the term haven't changed.

不，前兩年做出了小小的讓步，後來又有所復甦，因此該協議的經濟效益在整個期限內沒有改變。

A very small concession this year and next on the rent and in terms of the square footage, no change.

今年和明年在租金和麵積方面會有很小的讓步，但不會有任何變化。

Sounds great. Okay, thanks very much. I'll turn it back.

聽起來不錯。好的，非常感謝。我會退回去的。

Thank you.

謝謝。

Next question will be from Saniya Sayed at CIBC. Please go ahead.

下一個問題來自加拿大帝國商業銀行（CIBC）的Saniya Sayed。請提問。

Hey, good morning. Just following up on the do it best, having assumed the lease and the quarter, who else would you view as still being on the watch list or that you're keeping a closer eye on?

嘿，早安。關於「盡力而為」的問題，在確定了租約和季度之後，您認為還有哪些公司仍在關註名單上，或者您正在密切關注？

I don't think we have anything particularly on the watch list. Not at.

我認為我們沒有特別值得關注的事情。一點兒也沒有。

The moment, no, not really, no.

此刻，不，真的不，不。

Okay.

好的。

And then just I guess some more color on just the pace of leasing activity. Sounds like things are fairly stable, but if you look at March, April, and so far in May, were there any notable shifts as in was there a low and then a pick up or has it just been constant the whole time?

然後我想再稍微介紹一下租賃活動的節奏。聽起來情況相當穩定，但如果你看看3月、4月以及5月至今的情況，有沒有出現一些顯著的變化？例如先是低迷然後回升，還是一直保持穩定？

I think we felt it sort of it felt to me like it sort of picked up in February.

我想我們感覺到了這一點，在我看來，它好像在二月有所回升。

It got quiet and now it's sort of picked up again and again, I don't really have a particular reason to point to why that is, but I would say the activity that we're seeing has been in the last more probably the last 60 days than anything else.

它起初很平靜，但現在又一次又一次地活躍起來，我真的沒有特別的理由來指出為什麼會這樣，但我想說，我們看到的活動很可能發生在過去 60 天。

And then Kevan, you spoke earlier about the US portfolio being a natural hedge against Canada and the currency aside from a fundamental perspective. You have the same view today in that you're more optimistic long term about your US portfolio and would expect that to perform Canada.

然後，Kevan，您之前提到，除了基本面因素外，美國投資組合是抵禦加拿大和加拿大貨幣的天然對沖工具。今天您也持有同樣的觀點，您對您的美國投資組合的長期表現更為樂觀，並預期加拿大投資組合的表現也會如此。

I think it would. I think that just overall if there are tariffs put in place. I think there's going to be ins and outs, and I don't fully understand what the implementation of tariffs will mean overall for business, and I don't think it's great for the economy. I'm not saying that. But for our sector in particular, I think overall it will drive higher demand.

我認為會的。我認為如果關稅真的實施，總體上會是這樣。我認為會有各種變數，我不完全理解關稅的實施對企業整體意味著什麼，我認為這對經濟不利。我不是這麼說的。但特別是對我們這個行業來說，我認為總體而言，這將推動需求增加。

And I think that will be better for our US portfolio than it would be for, say, for example, our Canadian portfolio.

我認為這對我們的美國投資組合來說會比對我們的加拿大投資組合更有利。

Right okay, that's all. I will turn it back.

好的，就這樣吧。我會把它退回去。

Thank you.

謝謝。

Thank you. There are no further questions at this time, Mr. Gorrie. I turned to call back over to you.

謝謝。戈里先生，現在沒有其他問題了。我轉過身來再問您。

Thank you, operator. Well, thanks everyone for being on the call today. Hopefully we'll speak to you on our Q2 call and have a great day.

謝謝接線生。好的，感謝大家今天的電話會議。希望我們能在第二季電話會議上與您聯繫，祝您有美好的一天。

Thank you, sir.

謝謝您，先生。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect your lines.

女士們，先生們，今天的電話會議到此結束。各位現在可以掛斷電話了。