Harbor Custom Development Inc (HCDI) 2023 Q1 法說會逐字稿

Thank you for standing by, and welcome to Harbor Custom Development, Inc.'s first quarter 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to introduce today's presenters, Sterling, Griffin, CEO, President, and Chairman of the Board; Lance Brown, Chief Financial Officer; and Jeff Habersetzer, Chief Operating Officer. I will now turn the conference over to Mr. Brown. Please go ahead.

感謝您的耐心等待，歡迎參加 Harbor Custom Development, Inc. 的 2023 年第一季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想介紹一下今天的演講者，首席執行官、總裁兼董事會主席斯特林·格里芬（Sterling Griffin）；蘭斯·布朗，首席財務官；和首席運營官 Jeff Habersetzer。我現在將會議交給布朗先生。請繼續。

Thank you, operator, and thank you all for joining us today. Welcome to Harbor Custom Development's first quarter 2023 earnings conference call. During our discussion today, we will be referring to our earnings press release and presentation that were made available prior to the call. The release and presentation can be found in the Investor Relations section of the Harbor website at www.harborcustomdev.com.

謝謝運營商，也感謝大家今天加入我們。歡迎參加 Harbor Custom Development 2023 年第一季度收益電話會議。在今天的討論中，我們將參考電話會議之前發布的收益新聞稿和演示文稿。該新聞稿和演示文稿可在 Harbor 網站 www.harborcustomdev.com 的投資者關係部分找到。

Before we begin, I would like to remind everyone that today's call includes forward-looking statements. Any forward-looking statements contained in the earnings release, earnings presentation, or discussed on the call today are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from these forward-looking statements, specifically included our statements regarding our industry and our outlook.

在開始之前，我想提醒大家，今天的電話會議包含前瞻性陳述。收益發布、收益演示或今天電話會議中討論的任何前瞻性陳述均須遵守 1995 年《私人證券訴訟改革法案》的安全港條款。此類陳述涉及許多風險、不確定性和其他因素這可能導致實際結果與這些前瞻性陳述存在重大差異，特別是我們有關行業和前景的陳述。

Please see our recent SEC filings, which identify the principal risks and uncertainties which could affect future performance. We assume no obligation to update any forward-looking statements. In addition, we will be discussing or providing certain non-GAAP financial measures today, including EBITDA, adjusted EBITDA, and adjusted EBITDA margin. Please see the appendix of our earnings presentation for a reconciliation of these non-GAAP measures to their most direct comparable GAAP measures. I would now like to turn the call over to Sterling.

請參閱我們最近向 SEC 提交的文件，其中確定了可能影響未來業績的主要風險和不確定性。我們不承擔更新任何前瞻性陳述的義務。此外，我們今天將討論或提供某些非 GAAP 財務指標，包括 EBITDA、調整後 EBITDA 和調整後 EBITDA 利潤率。請參閱我們收益報告的附錄，了解這些非 GAAP 衡量標準與其最直接可比的 GAAP 衡量標準的對賬情況。我現在想把電話轉給斯特林。

Thank you, Lance, and thanks to everyone for joining the call today. We appreciate your continued support of Harbor Custom Development. Before I talk about the first quarter, I would like to begin by updating everyone on our recent announcement regarding my upcoming retirement and our executive transition plan.

謝謝你，蘭斯，也感謝大家今天加入電話會議。我們感謝您對 Harbor Custom Development 的持續支持。在談論第一季度之前，我想首先向大家介紹我們最近宣布的有關我即將退休和高管過渡計劃的最新消息。

As was disclosed in our recent press release and corresponding 8-K, I'll be retiring from my position as Chief Executive Officer, President, and Chairman of the Board of Directors effective as of July 12, 2023. I will continue to support the company serving as a non-executive strategic advisor through January 12, 2025.

正如我們最近的新聞稿和相應的 8-K 中所披露的，我將從 2023 年 7 月 12 日起辭去首席執行官、總裁和董事會主席的職務。我將繼續支持公司擔任非執行戰略顧問直至 2025 年 1 月 12 日。

Jeff Habersetzer, our current Chief Operating Officer, General Counsel, and Corporate Secretary is expected to be named as Interim Chief Executive Officer and Interim President. Jeff has been instrumental in taking Harbor public, growing our business and leading operations, including the shift in focus to multifamily and the significant progress we have made with the construction rent-up and recent purchase and sale agreements for those assets.

我們現任首席運營官、總法律顧問兼公司秘書 Jeff Habersetzer 預計將被任命為臨時首席執行官和臨時總裁。傑夫在 Harbour 上市、發展我們的業務和領導運營方面發揮了重要作用，包括將重點轉向多戶住宅，以及我們在建築租賃和最近這些資產的購買和銷售協議方面取得的重大進展。

Jeff's operational and legal background in the real estate industry and in-depth knowledge of Harbor's operations makes him the ideal person for the job, and I'm confident in the direction and future of the company under his leadership.

Jeff 在房地產行業的運營和法律背景以及對 Harbor 運營的深入了解使他成為這份工作的理想人選，我對他領導下的公司的方向和未來充滿信心。

Lance Brown, our current Chief Financial Officer is expected to take on an expanded role and be appointed as Interim Chief Operating Officer, while maintaining his current position as Chief Financial Officer to help facilitate a smooth transition and continuity of our operational leadership.

我們現任首席財務官蘭斯·布朗預計將承擔更大的職責，並被任命為臨時首席運營官，同時維持其目前的首席財務官職位，以幫助促進我們運營領導層的平穩過渡和連續性。

I would like to conclude on this topic by expressing a heartfelt thank you to all of our employees, customers, suppliers, business partners, and shareholders for their support these past years. Harbor would not be what it is today without each of you.

最後，我想對我們所有員工、客戶、供應商、業務合作夥伴和股東過去幾年的支持表示衷心的感謝。沒有你們每個人，港口就不會是今天的樣子。

Now let's shift focus on our first quarter earnings. In the first quarter of 2023 poor real estate market conditions caused by rising interest rates resulted in weaker sales volume, lower prices, and decreased net income for the company. We were cautiously optimistic heading into 2023 that the potential sales of our first few multifamily projects would provide for increased revenue during the quarter.

現在讓我們將注意力轉移到第一季度的收益上。 2023年第一季度，利率上升導致房地產市場狀況不佳，導致銷量疲軟、價格下跌，公司淨利潤下降。進入 2023 年，我們謹慎樂觀地認為，我們首批幾個多戶住宅項目的潛在銷售將為該季度的收入增加。

However, the uncertainty in interest rates has significantly decreased multifamily sales across our principal market area in most areas of the country during the quarter as buyers struggled to obtain suitable project financing.

然而，由於買家難以獲得合適的項目融資，利率的不確定性導致本季度我們在全國大部分地區的主要市場區域的多戶住宅銷售量大幅下降。

From a cost perspective, we expect project related costs to remain elevated in the near term. However, we remain optimistic that land costs, material costs, and labor costs will begin returning toward pre-pandemic levels. Land costs along with certain materials, particularly lumber, for example, have recently demonstrated year-over-year declines.

從成本角度來看，我們預計項目相關成本短期內仍將保持較高水平。然而，我們仍然樂觀地認為土地成本、材料成本和勞動力成本將開始恢復到大流行前的水平。土地成本以及某些材料（尤其是木材）最近呈現逐年下降的趨勢。

We partially offset the unfavorable impact these events had on our business. We took further action to control costs, curtail discretionary spending, and improve operational inefficiencies during the quarter. Efforts to shift our inventory and enhance our focus on multifamily housing continued to advance. Multi-family projects now represent approximately 64% of our total real estate assets.

我們部分抵消了這些事件對我們業務造成的不利影響。本季度我們採取了進一步行動來控製成本、削減可自由支配支出並改善運營效率低下的情況。轉移庫存和加強對多戶住房的關注的努力繼續推進。多戶住宅項目目前約占我們房地產總資產的 64%。

Our team has made significant progress advancing several of our multifamily projects and completed construction on Pacific Ridge and Wyndstone during the first quarter. Additionally, we executed a purchase and sale agreement for Mills Crossing, a purchase price of approximately $14.3 million. We expect the transaction to close in late June and contribute to second quarter revenue.

我們的團隊在推進多個多戶住宅項目方面取得了重大進展，並在第一季度完成了 Pacific Ridge 和 Wyndstone 的建設。此外，我們還簽署了 Mills Crossing 的購買和銷售協議，購買價格約為 1,430 萬美元。我們預計該交易將於 6 月下旬完成，並為第二季度收入做出貢獻。

We observed meaningful rent up at our Pacific Ridge, Belfair, and Wyndstone communities located in western Washington during the first quarter. We also monetized [11 lots] in our Winding Lane community in California.

第一季度，我們觀察到位於華盛頓州西部的 Pacific Ridge、Belfair 和 Wyndstone 社區的租金大幅上漲。我們還在加利福尼亞州 Winding Lane 社區實現了貨幣化 [11 塊土地]。

We continue to see demand in our Texas market and are expanding our position through a partnership with Austin-based general contractor, Wurzel Builders. During the quarter, we sold homes in our La Ventana and Siena Creek subdivisions. We also continued to progress the construction of homes in Summit Rock and Sienna Creek with the expectation that several of these new homes will go on the market in the second quarter of 2023.

我們繼續看到德克薩斯州市場的需求，並通過與奧斯汀總承包商 Wurzel Builders 的合作擴大我們的地位。本季度，我們出售了 La Ventana 和 Siena Creek 分區的房屋。我們還繼續推進 Summit Rock 和 Sienna Creek 的住宅建設，預計其中幾棟新住宅將於 2023 年第二季度上市。

As of March 31, 2023, our backlogs of fully executed contracts were 16.2 million compared to 20.7 million as of March 31, 2022. The slight decrease is primarily due to the majority of our fee build projects being completed and the continued shift in strategy to focus on multifamily projects.

截至 2023 年 3 月 31 日，我們完全執行的積壓合同為 1,620 萬份，而截至 2022 年 3 月 31 日為 2,070 萬份。略有下降的主要原因是我們的大部分收費建設項目已完成，以及戰略的持續轉變專注於多戶型項目。

I want to also highlight the actions we took to strengthen our financial position as we navigate near term uncertainty. Our stock split combined with the restructuring of the BankUnited loan agreement provided us with the necessary foundation to build on our strategic objectives.

我還想強調我們在應對近期不確定性時為加強財務狀況而採取的行動。我們的股票分割與 BankUnited 貸款協議的重組相結合，為我們實現戰略目標奠定了必要的基礎。

Furthermore, these actions supported our company in regaining compliance with the Nasdaq Capital Markets continued listing standards. We believe this development has the potential to broaden our opportunities to attract investment capital, strategic partners, and project financing to achieve our goals and continue to execute on our long-term strategy of rebuilding value for our shareholders. I will now turn the call back to Lance Brown, our Chief Financial Officer to further discuss our financial details.

此外，這些行動支持我們公司重新符合納斯達克資本市場持續上市標準。我們相信，這一發展有可能擴大我們吸引投資資本、戰略合作夥伴和項目融資的機會，以實現我們的目標，並繼續執行我們為股東重建價值的長期戰略。現在我將把電話轉回給我們的首席財務官蘭斯·布朗，進一步討論我們的財務細節。

Thank you, Sterling. Before I review the financial results in greater detail, I wanted to convey my gratitude for the Harbor team's dedication as we navigate this challenging economic environment. Sales in the first quarter decreased to $9.2 million as compared to $28.6 million in the prior year period. Decrease in sales is primarily driven by decreases in developed lots sales of $6.6 million, home sales of $6.2 million, entitled land sales of $4.5 million, and fee build of $2.4 million compared to the prior year period.

謝謝你，斯特林。在更詳細地審查財務業績之前，我想對 Harbour 團隊在我們應對這一充滿挑戰的經濟環境時所付出的奉獻表示感謝。第一季度銷售額從去年同期的 2860 萬美元下降至 920 萬美元。銷售額下降的主要原因是與上年同期相比，已開發地塊銷售額減少了 660 萬美元，房屋銷售額減少了 620 萬美元，授權土地銷售額減少了 450 萬美元，費用增加了 240 萬美元。

These decreases were partially offset by $0.4 million of rental revenue earned from multifamily projects during the first quarter. A decrease in developed lots and entitled land sales was primarily driven by decreased buyer demand in our California and Washington markets.

這些下降被第一季度多戶住宅項目賺取的 40 萬美元租金收入部分抵消。已開發地塊和授權土地銷售的減少主要是由於加州和華盛頓市場的買家需求下降所致。

As expected, fee build revenue decreased during the quarter as those projects continued to near completion. Decrease in home sales was primarily attributed to the sale of homes in our Washington market in the prior year period and the lack of completed inventory available during the first quarter 2023. Excess home sales were relatively consistent year over year.

正如預期的那樣，隨著這些項目繼續接近完成，本季度的收費收入有所下降。房屋銷售下降的主要原因是去年同期華盛頓市場的房屋銷售以及 2023 年第一季度可用的已竣工庫存不足。房屋銷售過剩與去年同期相對穩定。

Our gross loss for the first quarter was $2 million compared to gross profit of $6.1 million in the prior year period. Gross margin loss was 22.3% compared to a gross profit margin of 21.2% in the first quarter of 2022. The gross loss for the quarter was primarily due to the non-recurrence of higher margin entitled land sales that occurred in the prior year period, lower gross profit and gross margins on homes and developed lot sales during the first quarter.

我們第一季度的毛虧損為 200 萬美元，而去年同期的毛利潤為 610 萬美元。毛利率損失為 22.3%，而 2022 年第一季度的毛利率為 21.2%。該季度的毛損失主要是由於去年同期發生的較高利潤率的土地銷售不再發生，第一季度房屋和開發地塊銷售的毛利潤和毛利率較低。

The recording of impairment charges totaling $1.6 million related to our Pacific Ridge multifamily project, as well as our Darkhorse and Bunker Ranch communities and a decrease in fee build gross profit and gross margin. Our operating expenses during the first quarter decreased by $0.9 million to $2.9 million compared to $3.8 million in the prior year.

與我們的 Pacific Ridge 多戶住宅項目以及 Darkhorse 和 Bunker Ranch 社區相關的總計 160 萬美元的減值費用記錄以及費用的減少增加了毛利潤和毛利率。第一季度我們的運營費用從去年的 380 萬美元減少到 290 萬美元，減少了 90 萬美元。

The decrease in total operating expenses can be primarily attributed to our continued focus on reducing expenses across the business. These efforts included reductions in professional fees of $0.3 million, insurance expense of $0.2 million, depreciation expense of $0.2 million, and stock compensation expense of $0.2 million.

總運營費用的下降主要歸因於我們持續致力於減少整個業務的費用。這些努力包括減少 30 萬美元的專業費用、20 萬美元的保險費用、20 萬美元的折舊費用和 20 萬美元的股票補償費用。

Net loss for the first quarter was $4.9 million compared to net income of $1.6 million in the prior year period. The decline in net income during the first quarter of 2023 was primarily attributable to lower sales as compared to the significant prior year sales in our California and Washington markets, and the $1.6 million of impairment charges recorded in the first quarter of 2023.

第一季度淨虧損為 490 萬美元，而上年同期淨收入為 160 萬美元。 2023 年第一季度淨利潤下降的主要原因是，與去年加州和華盛頓市場的顯著銷售額相比，銷售額下降，以及 2023 年第一季度記錄的 160 萬美元減值費用。

Net loss attributable to common stockholders for the first quarter of 2023 was $6.8 million, a $9.39 basic loss per share compared to net loss attributable to common stockholders of $0.4 million or $0.56 basic loss per share for the first quarter of 2022.

2023 年第一季度普通股股東應占淨虧損為 680 萬美元，每股基本虧損為 9.39 美元，而 2022 年第一季度普通股股東應占淨虧損為 40 萬美元，每股基本虧損為 0.56 美元。

EBITDA for the first quarter of 2023 decreased from $3.5 million in the prior year period to a loss of $4.5 million. Excluding the impact of stock compensation and other non-recurring items, adjusted EBITDA for the first quarter decreased to a loss of $4.4 million compared to adjusted EBITDA of $3.9 million in the prior year period.

2023 年第一季度的 EBITDA 從上年同期的 350 萬美元減少至虧損 450 萬美元。排除股票薪酬和其他非經常性項目的影響，第一季度調整後 EBITDA 下降至虧損 440 萬美元，而上年同期調整後 EBITDA 為 390 萬美元。

Net cash used in operating activities for the quarter ended March 31, 2023, was $11.6 million. The primary uses of cash during the quarter were related to the development and construction of our real estate assets, a majority of which were focused on our multifamily projects. Our real estate assets have continued to increase to $217.8 million as of March 31, 2023. As of March 31, 2023, our real estate assets were levered approximately 60%.

截至 2023 年 3 月 31 日的季度運營活動使用的現金淨額為 1160 萬美元。本季度現金的主要用途與我們的房地產資產的開發和建設有關，其中大部分集中於我們的多戶住宅項目。截至2023年3月31日，我們的房地產資產持續增加至2.178億美元。截至2023年3月31日，我們的房地產資產槓桿率約為60%。

Additionally, during the first quarter, we effected a on1e for 20 reverse stock split on March 6. Completion of the reverse stock split was important to maintain compliance with the minimum bid price requirement of the Nasdaq Capital Market's continued listing standards, as Sterling highlighted earlier.

此外，在第一季度，我們於 3 月 6 日進行了 20 次反向股票分割。正如斯特林早些時候強調的那樣，完成反向股票分割對於保持遵守納斯達克資本市場持續上市標準的最低買入價要求非常重要。

The reverse split combined with the restructuring of the BankUnited loan agreement now since February enhances our ability to achieve our strategic objectives. Following the announcement of the reverse stock split, Nasdaq Capital Markets informed us that the company regained compliance with Nasdaq's continued listing standards. We remain focused on further strengthening our balance sheet and look forward to reporting additional progress in future periods. I will now turn it back to Sterling for closing remarks. Sterling?

自二月份以來，反向拆分與 BankUnited 貸款協議的重組相結合，增強了我們實現戰略目標的能力。在宣布反向股票分割後，納斯達克資本市場通知我們，該公司重新符合納斯達克的繼續上市標準。我們仍然專注於進一步加強我們的資產負債表，並期待在未來報告更多進展。現在我將把它轉回給斯特林做總結髮言。英鎊？

Thank you, Lance. As uncertainty persists due to ongoing challenges impacting the real estate market and broader economy, we remain committed to rebuilding shareholder value, and we're committed to taking proactive measures to control costs and position our business for future growth. And before turning the call back to the operator, I've asked Jeff Habersetzer, our Chief Operating Officer, and expected Interim Chief Executive Officer and Interim President, to say a few words. Jeff?

謝謝你，蘭斯。由於影響房地產市場和更廣泛經濟的持續挑戰，不確定性持續存在，我們仍然致力於重建股東價值，並致力於採取積極措施來控製成本並為我們的業務未來增長做好準備。在將電話轉回給接線員之前，我請我們的首席運營官、臨時首席執行官兼臨時總裁 Jeff Habersetzer 說幾句話。傑夫？

Thank you, Sterling. I'm very happy for you, and I hope you will be able to enjoy spending time with your family in retirement. I'm honored to take on the role of Interim CEO and Interim President, and I'm grateful for the confidence that you and the Board have placed in me. To our shareholders, w

謝謝你，斯特林。我為你感到非常高興，希望你在退休後能夠享受與家人共度的時光。我很榮幸擔任臨時首席執行官和臨時總裁，並感謝您和董事會對我的信任。致我們的股東，

While I am proud of our company and what we have accomplished to date, there is much work to be done. Our collective team is aligned extremely focused on achieving our immediate and long-term business objectives. As we move forward, my top priority is to get us back on the path to long-term stability and restore public trust in the HCDI brand.

雖然我為我們的公司和我們迄今為止所取得的成就感到自豪，但仍有許多工作要做。我們的集體團隊非常專注於實現我們的近期和長期業務目標。在我們前進的過程中，我的首要任務是讓我們重回長期穩定的道路並恢復公眾對 HCDI 品牌的信任。

Our business objectives are within reach. And by utilizing our current and future asset base, I'm confident in our ability to increase shareholder value. I look forward to a bright future for Harbor and its shareholders. With that, I will turn it back to the operator.

我們的業務目標觸手可及。通過利用我們當前和未來的資產基礎，我對我們增加股東價值的能力充滿信心。我期待港灣及其股東擁有光明的未來。這樣，我會將其返還給操作員。

We will now switch to the question-and-answer session. Prior to the call, inquiries were submitted to ir@harborcustomdev.com. I will now read the previously submitted questions for Mr. Griffin and Mr. Brown to respond to. Thank you to everyone who submitted questions.

我們現在將進入問答環節。在通話之前，詢問已提交至 ir@harborcustomdev.com。我現在宣讀之前提出的問題，請格里芬先生和布朗先生作出答复。感謝所有提交問題的人。

What was the cause for the additional impairment on Pacific Ridge and impairments of Darkhorse and Bunker Ranch? Can we expect to see impairment charges on other properties?

Pacific Ridge 額外減值以及Darkhorse 和Bunker Ranch 減值的原因是什麼？我們可以預期會看到其他財產的減值費用嗎？

As part of our quarter closed procedures, we reviewed each of our properties for potential impairment. In this process we determined that Pacific Ridge was further impaired beyond what was recorded in 2022 and recorded the additional expense.

作為季度結算程序的一部分，我們審查了每項財產是否存在潛在減值。在此過程中，我們確定 Pacific Ridge 的減值程度超出了 2022 年記錄的水平，並記錄了額外費用。

We also recently reduced our list prices for many of our Darkhorse lots and the last home in our Bunker Ranch subdivision. Those list prices are below our cost of the project. So we took an impairment charge net of these properties in the first quarter of 2023. As of March 31, 2023, although the properties are expected to be profitable, actual sales prices and profitability will depend on the market conditions at the time of sale.

我們最近還降低了許多黑馬地段和邦克牧場分區最後一個住宅的標價。這些標價低於我們的項目成本。因此，我們在2023年第一季度扣除了這些房產的減值費用。截至2023年3月31日，儘管這些房產預計將盈利，但實際銷售價格和盈利能力將取決於銷售時的市場狀況。

Will you please provide an update on what kind of margins Harbor expects to generate from sales expected to occur in 2023?

您能否提供有關 Harbor 預計 2023 年銷售將產生多少利潤的最新信息？

We continue to still observe market dynamics and trends. And we are not providing financial guidance at this time, given that our near-term outlook remains uncertain due to sustained challenges impacting the broader market, such as increases to interest rates, affordability, and unpredictability of the timing of sales.

我們仍然繼續觀察市場動態和趨勢。鑑於影響更廣泛市場的持續挑戰（例如利率上升、負擔能力以及銷售時間的不可預測性），我們的近期前景仍然不確定，因此我們目前不提供財務指導。

Can you provide any updates around sales of Pacific Ridge, Wyndstone, Belfair, and Meadowscape?

您能否提供有關 Pacific Ridge、Wyndstone、Belfair 和 Meadowscape 銷售的任何最新信息？

Construction is complete for Pacific Ridge and Wyndstone, and significant progress has been made on the construction of Belfair and Meadowscape. We also continue to rent up units at Pacific Ridge, Wyndstone, and Belfair, and expect to begin renting units at Meadowscape in the second quarter.

Pacific Ridge 和 Wyndstone 的建設已完成，Belfair 和 Meadowscape 的建設也取得了重大進展。我們還繼續出租 Pacific Ridge、Wyndstone 和 Belfair 的單位，並預計在第二季度開始出租 Meadowscape 的單位。

We continue to see significant interest in each of these multifamily properties, but none of them are under contract today. As has been our past practice, we will communicate the execution of any significant purchase and sale agreements when they occur.

我們仍然看到人們對這些多戶型房產表現出濃厚的興趣，但目前這些房產都沒有簽訂合同。按照我們過去的做法，我們將在任何重大採購和銷售協議發生時通報其執行情況。

If Harbor cannot achieve acceptable sales prices on Wyndstone, Meadowscape, Pacific Ridge, and Belfair, does it have enough liquidity to continue to hold these properties and collect the rents?

如果 Harbour 無法在 Wyndstone、Meadowscape、Pacific Ridge 和 Belfair 上實現可接受的銷售價格，它是否有足夠的流動性來繼續持有這些房產並收取租金？

Our business model is to monetize our assets at the earliest time in the development cycle. Harbor is working to sell all of our multifamily properties at this time. However, if market conditions necessitated, Harbor could consider holding our multifamily properties until valuations improve, but would need to replace the current construction loans with more permanent financing.

我們的商業模式是在開發週期的最早時間將我們的資產貨幣化。 Harbour 目前正在努力出售我們所有的多戶住宅。然而，如果市場條件有必要，Harbor 可以考慮持有我們的多戶住宅，直到估值改善，但需要用更永久的融資來取代當前的建設貸款。

Is Harbor planning to sell any assets in order to raise cash to be in a better liquidity position?

Harbor 是否計劃出售任何資產以籌集現金以處於更好的流動性狀況？

We continue to evaluate our assets for the highest and best use case within the context of driving shareholder value while meeting our operating cash needs. The key for us in the current market conditions is trying to find the optimal selling price for each property, which will allow us to quickly generate cash, while also maintaining gross profit and margins as best we can.

我們繼續評估我們的資產，以獲得最高和最佳的用例，以推動股東價值，同時滿足我們的運營現金需求。在當前市場條件下，我們的關鍵是努力找到每處房產的最佳售價，這將使我們能夠快速產生現金，同時盡可能保持毛利潤和利潤率。

We have listed and are actually marketing several lots in Texas, along with all of our California lots and our Punta Gorda, Florida property. We also recently entered into a PSA for the sale of our Bridge View Trail Apartment site rather than holding it until the vertical construction was complete. We have and will continue to adapt to market conditions necessary to improve our liquidity position.

我們已經列出並實際上正在營銷德克薩斯州的幾處地塊，以及我們在加利福尼亞州的所有地塊和佛羅里達州蓬塔戈爾達的房產。我們最近還簽訂了一份PSA協議，出售我們的Bridge View Trail公寓地塊，而不是持有它直到垂直建設完成。我們已經並將繼續適應必要的市場條件，以改善我們的流動性狀況。

Can you remind us how much of each sales proceeds Harbor is required to pay to BankUnited?

您能提醒我們每筆銷售收入中 Harbor 需要支付給 BankUnited 多少嗎？

BankUnited is entitled to receive 25% of the net cash proceeds from any sale, net of any amount required to be paid to a third party lender and any other actual and reasonable costs incurred in connection with the sale, including without limitation fees, commissions, and taxes paid are reasonably estimated to be payable until the loan is paid in full.

BankUnited 有權獲得任何銷售淨現金收益的 25%，扣除需要支付給第三方貸方的任何金額以及與銷售相關的任何其他實際合理成本，包括但不限於費用、佣金、在全額償還貸款之前，合理估計應繳納的稅款。

Will you please provide an update on Harbor's inventory in the Austin and Horseshoe Bay real estate markets?

您能否提供奧斯汀和馬蹄灣房地產市場 Harbour 庫存的最新信息？

We have seven homes under construction in the Austin market, five of which are in a gated golf course community called Cimarron Hills. We anticipate selling these homes for approximately 400 per square foot. We have two other Austin centric homes, one in Flintrock Hills and one in Creeks Edge. These homes should generate a slightly higher price per square foot of approximately $410 to $420.

我們在奧斯汀市場有七棟房屋正在建設中，其中五棟位於一個名為 Cimarron Hills 的封閉高爾夫球場社區。我們預計這些房屋的售價約為每平方英尺 400 美元。我們還有另外兩處以奧斯汀為中心的住宅，一處位於 Flintrock Hills，一處位於 Creeks Edge。這些房屋每平方英尺的價格應該略高，約為 410 至 420 美元。

Regarding Horseshoe Bay, we have nine homes under construction in the Summit Rock subdivision and two in the Sienna Creek club. We also anticipate generating approximately 400 per square foot on these homes. As of today, we do not have any finished standing inventory in either the Austin market or Horseshoe Bay, which is a testament to the strength of our particular submarket and the Harbor product.

關於馬蹄灣，我們在 Summit Rock 分區有九棟房屋在建，兩棟在 Sienna Creek 俱樂部在建。我們還預計這些房屋每平方英尺可發電約 400 瓦。截至今天，我們在奧斯汀市場或馬蹄灣都沒有任何成品庫存，這證明了我們特定子市場和港口產品的實力。

Can you provide an update for your Horizon Semiahmoo & Grandis Pond project?

您能否提供 Horizo​​n Semiahmoo & Grandis Pond 項目的最新信息？

Regarding the Horizon Semiahmoo properties, we've received preliminary flat approval on the 60 lots Phase 2 subdivision and have started marketing that property. We are also marketing the multifamily tracks [R,S, and T], which are approximately 106 units combined.

關於 Horizo​​n Semiahmoo 房產，我們已獲得第二階段 60 塊土地的初步組屋批准，並已開始營銷該房產。我們還營銷多戶住宅軌道 [R、S 和 T]，總共約有 106 個單元。

As it relates to the Inverness property, we have started the preliminary flat process for the 63 single-family lots subdivision and expect to have preliminary flat approval in 2023, upon which we may attempt to monetize the asset. Grandis Pond is our objective to close on the purchase of this property and complete the offsite engineering and the on-site civil engineering for the first 120 lots of the projects by year end.

由於與因弗內斯房產相關，我們已經啟動了 63 個單戶住宅地塊細分的初步組屋流程，預計將於 2023 年獲得初步組屋批准，屆時我們可能會嘗試將資產貨幣化。 Grandis Pond 的目標是在年底前完成對該房產的收購，並完成前 120 個地塊項目的場外工程和現場土木工程。

Is the pending Bridge View Trail PSA that was recently announced for an $11 million sales price, a significant reduction from the original listing price or is that not a proper comparison?

最近宣布的待定的 Bridge View Trail PSA 售價為 1100 萬美元，這是否比最初的掛牌價格大幅下降，或者這不是一個適當的比較嗎？

The originally announced listing price was for a fully constructed and stabilized apartment building. The current pending Bridge View sale is just for the horizontally developed apartment site.

最初公佈的掛牌價格是一棟完全建成且穩定的公寓樓的掛牌價格。目前懸而未決的 Bridge View 銷售僅適用於水平開發的公寓地塊。

Can you comment on the significant stock price volatility and volume we have seen recently?

您能否評論一下我們最近看到的股價大幅波動和成交量？

We monitor our stock closely and are aware of the significant volume and stock price volatility these past few weeks. We don't know the exact reason for the fluctuations, but I'm glad to see some positive movement in liquidity in our stock. That being said, our primary focus is on creating long-term shareholder value.

我們密切監控我們的股票，並意識到過去幾週的巨大交易量和股價波動。我們不知道波動的確切原因，但我很高興看到我們股票的流動性出現一些積極的變化。話雖這麼說，我們的首要重點是創造長期股東價值。

Will you please provide an update on Punta Gorda?

您能否提供有關蓬塔戈爾達的最新情況？

Punta Gorda is currently listed for sale at entitled land, and we have engaged a broker who is actively marketing the property. It is our goal to sell this property in 2023.

蓬塔戈爾達目前已掛牌出售有權擁有的土地，我們已聘請了一位正在積極營銷該房產的經紀人。我們的目標是在 2023 年出售該房產。

Is the company looking at expansion in other states besides Washington, Texas, California, and Florida?

除了華盛頓州、德克薩斯州、加利福尼亞州和佛羅里達州之外，該公司是否正在考慮在其他州擴張？

We are always looking for new properties to add to our portfolio and are willing to consider any location where the project economics makes sense. However, our primary short-term focus is on stabilizing our company through the completion, rent-up, and monetization of our multifamily assets in Washington, our single-family homes in lots in Texas, and our land in lots in California and Florida.

我們一直在尋找新的房產添加到我們的投資組合中，並願意考慮項目經濟合理的任何地點。然而，我們短期的主要重點是通過完成、出租和貨幣化我們在華盛頓的多戶資產、德克薩斯州的單戶住宅以及加利福尼亞州和佛羅里達州的土地來穩定我們的公司。

What is the status of the Mills Crossing sale?

Mills Crossing 的銷售情況如何？

As we recently announced via press release and 8-K, buyer has waived all contingencies released the $400,000 of non-refundable earnest money to Harbor, and the sale is expected to close on or before June 16, 2023.

正如我們最近通過新聞稿和 8-K 宣布的那樣，買方已放棄所有意外事件，向 Harbor 發放了 40 萬美元的不可退還保證金，預計銷售將於 2023 年 6 月 16 日或之前完成。

After downsizing land development infrastructure division, are there any other costs that can be cut to conserve cash?

縮小土地開發基礎設施部門規模後，是否還有其他成本可以削減以節省現金？

We have cut other costs beyond those related to the land development and infrastructure division, as was reflected in the Q1 2023 year-over-year decline in operating expenses, which included savings from professional fees, insurance, and other operating expenses. We continue to closely monitor our spending, looking for additional cost savings opportunities, while still ensuring we are able to meet the needs of the business.

除了與土地開發和基礎設施部門相關的成本外，我們還削減了其他成本，2023 年第一季度運營費用同比下降就反映了這一點，其中包括專業費用、保險和其他運營費用的節省。我們繼續密切監控我們的支出，尋找額外的成本節約機會，同時仍然確保我們能夠滿足業務需求。

Thank you everyone for participating in today's call. We look forward to providing additional updates soon. You can find more information regarding the company on our Investor Relations website, www.harborcustomdev.com.

感謝大家參加今天的電話會議。我們期待很快提供更多更新。您可以在我們的投資者關係網站 www.harborcustomdev.com 上找到有關該公司的更多信息。

For the most recent updates on company news, we encourage you to sign up for e-mail notifications on the Investor Resources tab of our website. If anyone has further questions, we can be reached at (866) 744-0974. or at IR@harborcustomdev.com. Thank you again for joining us today. We appreciate your time.

如需了解公司新聞的最新動態，我們鼓勵您在我們網站的“投資者資源”選項卡上註冊接收電子郵件通知。如果有人還有其他疑問，請致電 (866) 744-0974 聯繫我們。或發送電子郵件至 IR@harborcustomdev.com。再次感謝您今天加入我們。我們感謝您的寶貴時間。

Thank you. This now concludes today's presentation. You may now disconnect your lines at this time, and thank you for your participation.

謝謝。今天的演講到此結束。此時您可以斷開線路，感謝您的參與。