Highwoods Properties Inc (HIW) 2023 Q4 法說會逐字稿

Hello, everyone, and welcome to the Highwoods Properties Fourth Quarter 2023 Earnings Call. My name is Bruno, and I'll be operating your call today. (Operator Instructions).

大家好，歡迎參加 Highwoods Properties 2023 年第四季財報電話會議。我叫布魯諾，今天由我接聽您的電話。 （操作員說明）。

I will now hand over to your host, Hannah True. Please go ahead.

我現在將會議交給主持人漢娜·特魯 (Hannah True)。請繼續。

Thank you, operator, and good morning, everyone. Joining me on the call this morning are Ted Klinck, our Chief Executive Officer; Brian Leary, our Chief Operating Officer; and Brendan Maiorana, our Chief Financial Officer.

謝謝接線員，大家早安。今天早上和我一起參加電話會議的是我們的執行長 Ted Klinck； Brian Leary，我們的營運長；以及我們的財務長 Brendan Maiorana。

For your convenience, today's prepared remarks have been posted on the web. If you have not received yesterday's earnings release or supplemental, they're both available on the Investors section of our website at highwoods.com. On today's call, our review will include non-GAAP measures such as FFO, NOI and EBITDAre. The release and supplemental include a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.

為了您的方便，今天準備好的發言稿已發佈在網上。如果您沒有收到昨天的收益報告或補充資料，您可以在我們網站 highwoods.com 的投資者部分獲取這些資訊。在今天的電話會議上，我們的審查將包括 FFO、NOI 和 EBITDAre 等非 GAAP 指標。此發布和補充包括這些非公認會計準則衡量指標與最直接可比較的公認會計準則財務衡量指標的調節。

Forward-looking statements made during today's call are subject to risks and uncertainties. These risks and uncertainties are discussed at link in our press releases as well as our SEC filings. As you know, actual events and results can differ materially from these forward-looking statements, and the company does not undertake a duty to update any forward-looking statements.

今天的電話會議中所做的前瞻性陳述存在風險和不確定性。這些風險和不確定性在我們的新聞稿和 SEC 文件的連結中進行了討論。如您所知，實際事件和結果可能與這些前瞻性陳述有重大差異，且本公司不承擔更新任何前瞻性陳述的義務。

With that, I'll turn the call over to Ted.

說完，我會把電話轉給泰德。

Thanks, Hannah, and good morning, everyone. Before I talk about our solid financial and operating results for 2023, let me start by first outlining our strategic priorities for the next several years. First, we will continue to improve the quality of our portfolio. We are laser focused on owning a portfolio that is resilient throughout all business cycles, well positioned to attract, retain and return our customers' most valuable resource, their employees, to their workplaces.

謝謝漢娜，大家早安。在談論我們 2023 年穩健的財務和營運績效之前，讓我先概述我們未來幾年的策略重點。首先，我們將繼續提高投資組合的品質。我們專注於擁有一個在所有業務週期中都具有彈性的投資組合，能夠很好地吸引、留住客戶最寶貴的資源（即員工）並將其返回到他們的工作場所。

We do this by developing best-in-class properties acquiring high-quality assets with attractive risk-adjusted returns, redeveloping and repositioning well-located properties where substantial upside exists and selling buildings that no longer meet our criteria.

為此，我們開發一流的房產，收購具有有吸引力的風險調整回報的優質資產，重新開發和重新定位具有巨大上升空間的位置優越的房產，並出售不再符合我們標準的建築物。

Second, we are focused on solidifying our rent role in driving future occupancy. This means proactively renewing customers as early and prudently as possible, and backfilling pockets of vacancy within the portfolio. We continue to be bullish on the long-term demographics of the Sunbelt. Simply put, we are in the best markets and best business districts to create long-term value for our shareholders.

其次，我們致力於鞏固租金在推動未來入住率方面的作用。這意味著儘早、謹慎地主動更新客戶，並填補產品組合中的空缺。我們繼續看好陽光地帶的長期人口統計。簡而言之，我們處於最好的市場和最好的商業區，為股東創造長期價值。

Third, we are laying the groundwork for future investment opportunities. We believe this cycle will present us with opportunities to create shareholder value by acquiring high-quality assets in the BBDs of high-growth markets. We will be patient and we will be ready.

第三，我們正在為未來的投資機會奠定基礎。我們相信，這個週期將為我們提供透過收購高成長市場 BBD 中的優質資產來創造股東價值的機會。我們將保持耐心並做好準備。

And fourth, we will continue to maintain a best-in-class balance sheet. As demonstrated over the past 90 days, having ample liquidity and access to multiple sources of capital throughout the cycle is an important differentiator for us. We made meaningful progress in all of these strategic priorities during 2023.

第四，我們將繼續維持一流的資產負債表。正如過去 90 天所證明的那樣，在整個週期中擁有充足的流動性和獲得多種資本來源的機會是我們的一個重要差異化因素。 2023 年，我們在所有這些策略重點方面都取得了有意義的進展。

We sold over $100 million of noncore properties, including land and made solid progress on our development pipeline with the completion of 2827 Peachtree, Granite Park Six and Glenlake Three. We expect these developments will provide meaningful growth in future years as they stabilize. Further, we completed significant highwoodtizing projects on existing buildings in Nashville and Raleigh, where we're already generating higher rental rates and increased leasing activity.

我們出售了超過 1 億美元的非核心資產，包括土地，並在開發項目上取得了紮實進展，完成了 2827 Peachtree、Granite Park Six 和 Glenlake Three。我們預計，隨著這些發展的穩定，未來幾年將帶來有意義的成長。此外，我們在納許維爾和羅利的現有建築上完成了重要的高木化項目，我們已經在這些地方產生了更高的租金率和增加的租賃活動。

We also made progress solidifying our future rent roll. We remain focused on our larger near-term expirations, and Brian will provide more detail shortly, and we're pleased with the traction we've had in Atlanta, Nashville and Tampa. Given the known move-outs that we've discussed for some time, occupancy is likely to dip in late 2024 and early 2025. But we're encouraged by the activity we've seen throughout the portfolio, which has already translated into significant lease signings since the start of 2024.

我們在鞏固未來租金方面也取得了進展。我們仍然專注於更大的近期到期，布萊恩很快就會提供更多細節，我們對我們在亞特蘭大、納許維爾和坦帕的吸引力感到滿意。鑑於我們已經討論了一段時間的已知搬出情況，入住率可能會在 2024 年底和 2025 年初下降。但我們對整個投資組合中看到的活動感到鼓舞，這些活動已經轉化為大量租賃自2024 年初以來的簽約。

It's early, and while we don't expect a lot of transaction activity in the near term, we are setting the stage for future investments through exploratory discussions with owners and lenders of attractive properties in our markets. This is similar to the playbook we deployed in the years following the GFC.

現在還為時過早，雖然我們預計短期內不會有大量交易活動，但我們正在透過與市場上有吸引力的房產的業主和貸方進行探索性討論，為未來的投資奠定基礎。這與我們在全球金融危機後幾年部署的策略類似。

We further strengthened our balance sheet by raising nearly $600 million of debt capital during 2023. Plus just a few weeks ago, we extended the term of our $750 million credit facility into 2029 with no change to the size or the borrowing spread. We now have over $900 million of current liquidity and no consolidated debt maturities until May 2026.

我們在2023 年期間籌集了近6 億美元的債務資本，進一步強化了我們的資產負債表。此外，就在幾週前，我們將7.5 億美元信貸安排的期限延長至2029 年，規模或借款利差沒有變化。我們目前擁有超過 9 億美元的流動資金，並且在 2026 年 5 月之前沒有合併債務到期日。

We are confident in the long-term outlook for our markets and BBDs based on the limited new supply expected to be added over the next few years. The current supply pipeline in our markets since half of what it was just a few years ago, with most of these developments projected to deliver over the next 4 quarters. By this time next year, minimal new product is expected to be under construction.

基於預計未來幾年新增供應有限，我們對市場和 BBD 的長期前景充滿信心。我們市場目前的供應管道僅為幾年前的一半，其中大部分開發案預計將在未來 4 個季度內交付。到明年這個時候，預計將有最少的新產品正在建設中。

This tightening supply picture further adds to our confidence as we focus on leasing up high-quality blocks that are or will become available in our buildings. Our well-located and high-quality portfolio, reputation as a best-in-class operator and strong financial sponsorship positions us to continue to gain market share.

這種供應緊張的情況進一步增強了我們的信心，因為我們專注於租賃我們建築物中現有或即將提供的優質街區。我們地理位置優越、高品質的投資組合、一流營運商的聲譽以及強大的財務贊助使我們能夠繼續獲得市場份額。

Turning to our results. We delivered FFO of $0.99 per share in the fourth quarter, with full year 2023 to $3.83 per share. Both the quarter and full year results included unusual items that net out to $0.08 of higher FFO. Excluding these items, our core 2023 FFO was $3.75 per share, $0.01 above the midpoint of our initial outlook. We are pleased with these financial results given asset sales and the unanticipated rise in interest rates during the year, neither of which were factored into our initial outlook.

轉向我們的結果。我們第四季的 FFO 為每股 0.99 美元，2023 年全年為每股 3.83 美元。季度和全年業績均包含異常項目，導致 FFO 增加 0.08 美元。不包括這些項目，我們的 2023 年核心 FFO 為每股 3.75 美元，比我們最初預期的中點高出 0.01 美元。考慮到年內的資產出售和意外的利率上升，我們對這些財務表現感到滿意，而這兩者都沒有納入我們的初步展望。

We expect to be a net seller again in 2024, with $75 million to $200 million of noncore dispositions. Similar to 2023, the volume and timing of dispositions will depend on how conditions in the investment sales market play out. We do have about $75 million of properties under contract and expect those sales to close in the first half of the year. While we're actively building the foundation for future investment opportunities, we don't have any acquisitions included in our 2024 outlook.

我們預計 2024 年將再次成為淨賣家，擁有 7,500 萬至 2 億美元的非核心資產。與 2023 年類似，處置的數量和時間將取決於投資銷售市場的狀況。我們確實有約 7500 萬美元的房產合同，預計這些銷售將在今年上半年完成。雖然我們正在積極為未來的投資機會奠定基礎，但我們的 2024 年展望中並未包含任何收購。

Our initial 2024 FFO outlook is $3.46 to $3.64 per share and same-property cash NOI growth is projected to be positive 1% at the midpoint. In addition, we have backfilled a significant amount of larger known move-outs that impacted 2023 NOI and occupancy. And while these backfills won't meaningfully contribute to 2024, they will drive the NOI in future years. We're also seeing good activity on backfilling some of the larger known move-outs later in 2024 and early 2025.

我們對 2024 年 FFO 的初步展望為每股 3.46 美元至 3.64 美元，預計相同財產現金 NOI 成長中點為正 1%。此外，我們也回填了影響 2023 年 NOI 和入住率的大量已知的較大搬遷活動。雖然這些回填不會對 2024 年做出有意義的貢獻，但它們將在未來幾年推動 NOI。我們也看到，在 2024 年稍後和 2025 年初回填一些已知的較大搬遷活動也表現良好。

While there obviously continues to be headwinds in the office sector, we're optimistic about the future. First, we have significant organic growth potential within our current operating portfolio with high-quality pockets of vacancy where we're seeing solid interest from prospects.

儘管辦公產業顯然仍面臨阻力，但我們對未來持樂觀態度。首先，我們目前的營運投資組合具有巨大的有機成長潛力，並且有大量高品質的空缺職位，我們看到潛在客戶對此抱有濃厚的興趣。

Second, our $518 million development pipeline will provide meaningful upside as it delivers and stabilizes in the next few years. Third, our balance sheet is in excellent shape, with ample liquidity and no need to raise capital for the next couple of years.

其次，我們 5.18 億美元的開發管道將在未來幾年內交付並穩定下來，從而提供有意義的上升空間。第三，我們的資產負債表狀況良好，流動性充足，未來幾年無需籌措資金。

And finally, our cash flows remain strong, even as we absorb headwinds from higher interest rates, and investing highwoodtizing capital to generate higher returns on our existing portfolio. To wrap up, we're not only optimistic because of our markets in our portfolio, but also because of our engaged, hard-working and talented teammates to drive our success day after day. I would like to thank the entire Highwoods team for their commitment and tireless dedication. It is their effort that has positioned us for success for many years to come. Brian?

最後，我們的現金流量仍然強勁，即使我們吸收了利率上升帶來的阻力，並投資了高額資本，為我們現有的投資組合帶來更高的回報。總而言之，我們的樂觀不僅是因為我們投資組合中的市場，還因為我們敬業、勤奮和才華橫溢的團隊成員日復一日地推動我們取得成功。我要感謝整個海伍德團隊的承諾和不懈的奉獻。正是他們的努力使我們在未來的許多年裡取得了成功。布萊恩？

Thanks, Ted, and good morning, everyone. I'd like to briefly hit our fourth quarter performance, macro trends and then drill down on our markets where we're off to a strong start for 2024 and where we are making progress towards backfilling our upcoming vacancies. In Q4 of 2023, our leasing team signed 698,000 square feet with an average lease term of 6.6 years.

謝謝，特德，大家早安。我想簡要介紹我們第四季度的業績和宏觀趨勢，然後深入研究我們的市場，我們在 2024 年有一個良好的開端，並且在填補即將到來的職位空缺方面正在取得進展。 2023年第四季度，我們的租賃團隊簽了698,000平方英尺，平均租期為6.6年。

Atlanta, Nashville and Raleigh led the way with 2/3 of the quarter's volume. Charlotte and Orlando had the highest occupancies at 95.6% and 93.5%, respectively. In addition, we signed a 105,000 square foot first-generation lease at 23Springs, our JV development in Uptown Dallas. While many of our leasing metrics reflect the downward pressure of the current market, we're encouraged by our portfolio's occupancy outperformance in comparison to our BBDs by over 640 basis points.

亞特蘭大、納許維爾和羅利以佔本季 2/3 的銷售領先。夏洛特和奧蘭多的入住率最高，分別為 95.6% 和 93.5%。此外，我們還在達拉斯上城區的合資開發項目 23Springs 簽署了 105,000 平方英尺的第一代租賃合約。雖然我們的許多租賃指標反映了當前市場的下行壓力，但我們的投資組合的入住率表現比我們的 BBD 高出 640 個基點以上，這讓我們感到鼓舞。

And with the fourth quarter's average rent bumps at 2.7%, we believe we have meaningful rent growth embedded in the quarter's results. The quality of our portfolio, our sponsorship and the commute worthy lifestyle office experience we provide our customers gives us a clear edge in today's leasing environment. We're off to a strong start to 2024, having already signed over 500,000 square feet of second-generation leases, including 150,000 square feet of new leases and 52,000 square feet of expansions since January 1.

鑑於第四季的平均租金上漲 2.7%，我們相信本季的業績包含了有意義的租金成長。我們的產品組合的品質、我們的贊助以及我們為客戶提供的值得通勤的生活方式辦公室體驗使我們在當今的租賃環境中具有明顯的優勢。我們在 2024 年有了一個良好的開端，已經簽署了超過 500,000 平方英尺的第二代租約，其中包括 150,000 平方英尺的新租約以及自 1 月 1 日以來的 52,000 平方英尺的擴建租約。

We continue to see return to work programs and mandates, raise the tide on physical occupancy with the recognition that Fridays will be the lightest days in the office, just as they were before the pandemic. This also goes with the fact that our customers are telling us one-on-one and via their lease activity that they value the physical workplace, where their best and brightest can collaborate and solve problems, where talent can be onboarded and mentored, and where a company's culture can thrive.

我們繼續看到重返工作計劃和任務，提高了實際佔用率，並認識到週五將是辦公室裡最輕鬆的日子，就像大流行之前一樣。這也與這樣一個事實相一致：我們的客戶透過他們的租賃活動一對一地告訴我們，他們重視實體工作場所，在那裡他們最優秀和最聰明的人可以合作和解決問題，人才可以入職和指導，以及一家公司的文化可以蓬勃發展。

This flight to quality is a flight of quality. Quality companies with quality jobs, not easily exported to the couch today or to artificial intelligence tomorrow. From a market perspective, let's start in Atlanta, where we had the most leasing activity in the fourth quarter with 172,000 square feet signed. While the overall market saw another quarter of negative absorption, Cushman & Wakefield noted Buckhead broke from this trend of 240,000 square feet of positive absorption.

這次向質量的飛行是一次質量的飛行。擁有優質工作機會的優質公司，不會輕易出口到今天的沙發或明天的人工智慧。從市場角度來看，我們從亞特蘭大開始，這裡第四季度的租賃活動最多，簽約面積為 172,000 平方英尺。雖然整體市場又出現一個季度的負吸收量，但高緯環球指出，巴克海特打破了這個趨勢，面積達 24 萬平方英尺的正吸收量。

With no new development underway and our 4-building, 2-million-square-foot Buckhead collection of lifestyle office buildings being the beneficiaries of our upcoming highwoodtizing project there. The team has backfilled 50,000 square feet and has more than 350,000 square feet of active prospects for the remainder of Novelis' Q3 2024 expiration.

由於沒有新的開發案正在進行，我們的 4 棟建築、面積 200 萬平方英尺的巴克海特生活風格辦公大樓系列成為我們即將在那裡進行的高木化專案的受益者。該團隊已回填 50,000 平方英尺，並在諾貝麗斯 2024 年第三季剩餘期限內擁有超過 350,000 平方英尺的活躍前景。

Staying in Atlanta, the Georgia Department of Revenue, as expected, will downsize, and we are successfully relocating them within the portfolio into 110,000 square feet at the beginning of 2025. In Music City, where we own 5.1 million square feet in Nashville's 4 BBDs, our team signed 148,000 square feet in the quarter. Over the same period, Cushman noted that Nashville posted 170,000 square feet of positive absorption, one of 5 markets in the nation to post greater than 150,000 square feet of absorption for the quarter.

留在亞特蘭大，喬治亞州稅務局將按預期縮小規模，我們將在 2025 年初成功地將其在投資組合內重新安置到 110,000 平方英尺。在音樂城，我們擁有納許維爾 4 個 BBD 的 510 萬平方英尺，我們的團隊在本季簽下了148,000 平方英尺。庫許曼指出，同一時期納許維爾的正吸收量為 17 萬平方英尺，是美國本季吸收量超過 15 萬平方英尺的 5 個市場之一。

Last year, we hybridized roughly 1 million square feet in our Brentwood and Franklin BBDs, where we signed more than half of Nashville's deals for the quarter and where these commute worthy workplaces are attracting customers. This supports our thesis that all things being equal, an exceptional experience (inaudible) tower, and that a lifestyle office building is more about the lifestyle than the building.

去年，我們在布倫特伍德和富蘭克林 BBD 混合了大約 100 萬平方英尺的面積，我們在那裡簽署了本季度納什維爾一半以上的交易，這些適合通勤的工作場所正在吸引客戶。這支持了我們的論點，在所有條件相同的情況下，這是一座非凡的體驗（聽不清楚）塔樓，並且生活方式辦公大樓更多的是關於生活方式而不是建築。

You may recall that we shared an update last quarter on the 5-story 264,000 square foot Cool Springs V building, formerly occupied by Tivity and the substantial backfill of that space.

您可能還記得，我們​​上個季度分享了有關 5 層 264,000 平方英尺的 Cool Springs V 大樓的最新情況，該大樓以前由 Tivity 佔用，並且該空間已大量回填。

We have modified the lease signed in the third quarter of 2022 from 223,000 square feet to 110,000 square feet. Under the modified terms of the lease, 55,000 square feet will commence in the fourth quarter of 2024 and the remaining 55,000 square feet in the fourth quarter of 2025. Free rent periods have been eliminated. Highwoods tenant improvement commitment has been reduced and the per square foot rental rate has been increased. With the aforementioned highwoodtizing of these assets, we have significant interest in the property and our other adjacent Cool Springs assets.

我們已將 2022 年第三季簽署的租約從 223,000 平方英尺修改為 110,000 平方英尺。根據修改後的租賃條款，55,000平方英尺將於2024年第四季開始使用，其餘55,000平方英尺將於2025年第四季開始使用。免租期已取消。 Highwoods 租戶改善承諾已減少，每平方英尺租金已增加。透過上述對這些資產的高度木材化，我們對該地產和其他鄰近的 Cool Springs 資產產生了濃厚的興趣。

In Downtown Nashville, we will begin the hybridizing of our 520,000 square foot Pinnacle tower later this year in anticipation of Bass, Berry & Sims known move-out in January of 2025. In the heart of Nashville, this well-located asset is next door to the newly opened Four Seasons Hotel & Residences and is directly connected to the only pedestrian bridge spanning the Cumberland River, joining the new $2 billion enclosed NFL stadium starting construction later this year. We already have several multi-floor prospects a year in advance of Bass Berry's expiration.

在納許維爾市中心，我們將於今年稍後開始對520,000 平方英尺的Pinnacle 塔樓進行混合化改造，預計Bass、Berry & Sims 將於2025 年1 月搬出。位於納許維爾市中心，這一位置優越的資產就在隔壁該項目毗鄰新開業的四季酒店及公寓(Four Seasons Hotel & Residences)，並直接與橫跨坎伯蘭河(Cumberland River) 的唯一一座人行天橋相連，與今年晚些時候開始建設的耗資20 億美元的新封閉式NFL 體育場(NFL) 相連。在 Bass Berry 到期前一年，我們已經有了幾個多層的潛在客戶。

A quick update on our noncore Pittsburgh assets where we expect a 317,000 square foot customer at EQT Plaza to downsize in the fourth quarter of 2024. We backfilled the full floor and have prospects for additional space. I'd like to finish in the Sunshine state, where Cushman noted, Tampa ended 2023 #3 in the nation for leasing as a percentage of inventory.

關於我們匹茲堡非核心資產的快速更新，我們預計殷拓廣場 (EQT Plaza) 的 317,000 平方英尺客戶將在 2024 年第四季度縮小規模。我們回填了整個樓層，並有希望獲得更多空間。我想以陽光州結束，庫什曼指出，坦帕在 2023 年的租賃佔庫存百分比方面在全國排名第三。

Our Tampa team has been busy at Tampa Bay Park. Our approximately 1 million square foot collection of assets in Westshore by addressing prior move-outs, 120,000 square feet in aggregate across the park with 95,000 square feet of backfill leasing that is yet to commence. In conclusion, while we expect 2024 to bring many of the same challenges we faced over the past several years, we are encouraged by the level of activity we are seeing throughout our BBDs.

我們的坦帕團隊在坦帕灣公園很忙。透過解決先前的遷出問題，我們在西岸收集了約 100 萬平方英尺的資產，整個公園總計 120,000 平方英尺，其中 95,000 平方英尺的回填租賃尚未開始。總之，雖然我們預計 2024 年將帶來許多與過去幾年相同的挑戰，但我們對整個 BBD 中看到的活動水平感到鼓舞。

Competitive development pipelines are at record lows, and we believe our resilient portfolio, ongoing highwoodtizing efforts, strong balance sheet and sizable land bank will enable us to capitalize on opportunities in our markets as they arise. Brendan?

有競爭力的開發管道處於歷史最低水平，我們相信，我們富有彈性的投資組合、持續的高木材化努力、強勁的資產負債表和龐大的土地儲備將使我們能夠在市場出現機會時抓住它們。布倫丹？

Thanks, Brian. In the fourth quarter, we delivered net income of $38 million or $0.36 per share and FFO of $106.7 million or $0.99 per share. As Ted mentioned, there were unusual items in the quarter that netted to $0.08 per share. None of these items were included in our updated FFO outlook provided in October.

謝謝，布萊恩。第四季度，我們實現淨利潤 3,800 萬美元，即每股 0.36 美元，FFO 為 1.067 億美元，即每股 0.99 美元。正如 Ted 所提到的，本季有一些不尋常的項目，每股淨收益為 0.08 美元。這些項目均未包含在我們 10 月提供的更新的 FFO 展望中。

Excluding these items, FFO per share was $0.91 in the fourth quarter and $3.75 for the year, $0.01 above our initial 2023 FFO outlook provided last February. We are pleased with these full year results as $0.04 of upside, mostly from higher NOI, overcame the $0.03 we lost from the combination of higher interest rates, asset sales and the earlier-than-expected repayment of our preferred investment in M&O.

不包括這些項目，第四季度 FFO 每股價格為 0.91 美元，全年 FFO 每股價格為 3.75 美元，比我們去年 2 月提供的 2023 年 FFO 最初預期高出 0.01 美元。我們對全年業績感到滿意，因為 0.04 美元的上漲（主要來自更高的 NOI）克服了我們因利率上升、資產出售以及 M&O 優先投資提前償還而損失的 0.03 美元。

Just a few details on the unusual items. The predevelopment costs written off in the fourth quarter were $3.6 million. $2.6 million of this shows up in G&A, while $1 million shows up in the form of reduced income from unconsolidated affiliates as it was attributable to a JV. The remaining unusual items; land sale gains, debt extinguishment costs and the write-off of straight-line rents due to moving a customer to cash basis accounting, are reflected as you would expect on the income statement.

只是關於不尋常物品的一些細節。第四季註銷的前期開發成本為 360 萬美元。其中 260 萬美元出現在一般管理費用中，而 100 萬美元則以來自未合併附屬公司的收入減少的形式出現，因為這歸因於合資企業。其餘異常物品；土地出售收益、債務清償成本以及因將客戶轉為收付實現制會計而導致的直線租金沖銷，都如您所期望地反映在損益表中。

During 2023, we further strengthened our balance sheet by pushing out our maturity ladder, which puts us in excellent shape for the next several years. During the fourth quarter, we raised $350 million of 10-year bonds with strong support from a broad group of fixed income investors. We also obtained a $45 million 5-year secured loan at Midtown West, a consolidated JV property in Tampa, where we own an 80% interest.

2023 年，我們透過推出成熟度階梯進一步強化了資產負債表，這使我們在未來幾年處於良好狀態。第四季度，在廣大固定收益投資者的大力支持下，我們籌集了 3.5 億美元的 10 年期債券。我們還在 Midtown West 獲得了一筆 4500 萬美元的 5 年期擔保貸款，這是位於坦帕的一個綜合合資企業地產，我們擁有該地產 80% 的權益。

We also obtained a $200 million secured loan in March. In total, we raised almost $600 million of debt capital during the year. After year-end, we recast our $750 million credit facility with no change to our borrowing capacity or credit spread. In the past 12 months, we've accessed the bond market, the mortgage market and the bank market for over $1.3 billion of total capital. We now have no consolidated debt maturities until May 2026 and over $900 million of available liquidity, having less than $250 million of capital left to complete our development pipeline.

我們還在三月獲得了 2 億美元的擔保貸款。這一年我們總共籌集了近 6 億美元的債務資本。年底後，我們重新調整了 7.5 億美元的信用額度，借款能力或信用利差沒有改變。在過去 12 個月中，我們進入債券市場、抵押貸款市場和銀行市場的總資本超過 13 億美元。目前，我們在 2026 年 5 月之前沒有合併債務到期日，可用流動資金超過 9 億美元，剩下的資本不足 2.5 億美元來完成我們的開發管道。

Our strong balance sheet with ample liquidity, combined with our high-quality portfolio in the BBDs of high-growth Sunbelt markets is a large reason why Moody's affirmed our Baa2 credit rating with a stable outlook just last week.

我們強大的資產負債表和充足的流動性，加上我們在高成長陽光地帶市場 BBD 中的高品質投資組合，是穆迪上週確認我們 Baa2 信用評級和穩定前景的一個重要原因。

I'd like to spend some time highlighting our cash flow trajectory. In 2023, we once again had healthy cash flows, demonstrating the resiliency of our portfolio and platform. Digging a little deeper, an even clearer picture emerges. First, as you know from prior calls, we had 2 sizable properties in 2023 that were vacant nearly the entire year, Cool Springs V and 2500 Century Center. These have now been substantially re-leased with additional solid interest in the balance of the space, but they generated negative NOI during 2023.

我想花一些時間強調我們的現金流軌跡。 2023 年，我們再次擁有健康的現金流，證明了我們的投資組合和平台的彈性。再深入一點，就會出現更清晰的畫面。首先，正如您從之前的電話中了解到的那樣，我們在 2023 年有兩處相當大的房產，它們幾乎全年都處於空置狀態：Cool Springs V 和 2500 Century Center。這些空間現已大量重新出租，對空間的平衡產生了額外的濃厚興趣，但它們在 2023 年產生了負 NOI。

Because our practice has long been not to take in-service properties available for lease out of our operating or same-store portfolio regardless of occupancy, these 2 empty buildings negatively impacted FFO and cash flow.

由於我們長期以來的做法是，無論入住率如何，都不會將可供租賃的在用物業從我們的營運或同店投資組合中剔除，因此這兩座空置建築對FFO 和現金流產生了負面影響。

Second, we had above average TI spend during 2023 as we funded committed capital on the high volume of new leases signed in 2022. Third, we invested heavily in renovation and repositioning capital to highwoodtize existing properties during the year. Even with these 3 factors, we still generated healthy cash flows that provided positive dividend coverage. We believe the resiliency of our cash flows should give our shareholders confidence in our long-term outlook.

其次，我們在2023 年的TI 支出高於平均水平，因為我們為2022 年簽署的大量新租賃提供了承諾資本。第三，我們在年內投入了大量資金進行翻新和重新定位資本，以對現有房產進行高度改造。即使考慮到這三個因素，我們仍然產生了健康的現金流，並提供了積極的股息覆蓋率。我們相信，現金流的彈性應該會讓股東對我們的長期前景充滿信心。

As Ted mentioned, our FFO outlook for 2024 is $3.46 to $3.64 per share. You'll also note that we are now providing our full year outlook for average occupancy rather than a single date year-end projection as we have done in prior years. We think average occupancy should provide better insight into our overall outlook for the year. Same-property cash NOI growth is projected to be flat to up 2%. This includes the full headwinds of the Cool Springs Century Center and Tampa Bay Park vacancies we've detailed as the backfill customers do not begin to take occupancy until later this year or early 2025 as well as the known pending vacancies at Two Alliance Center in Atlanta and EQT Plaza in Pittsburgh in the second half of the year.

正如 Ted 所提到的，我們對 2024 年 FFO 的展望為每股 3.46 美元至 3.64 美元。您還會注意到，我們現在提供的是全年平均入住率展望，而不是像前幾年那樣提供單一日期的年終預測。我們認為平均入住率應該可以讓我們更了解今年的整體前景。預計同一房產現金 NOI 成長將持平，成長 2%。這包括我們詳細介紹的 Cool Springs Century Center 和坦帕灣公園空缺的全部不利因素，因為回填客戶要到今年晚些時候或 2025 年初才會開始入住，以及亞特蘭大兩個聯盟中心已知的待定空缺下半年將在匹茲堡開設殷拓廣場(EQT Plaza)。

While 2024 per share FFO is projected to be down compared to the core results in 2023, the decline is primarily attributable to higher financing costs associated with our capital raising activities in the fourth quarter of 2023 and the modification of the lease and accounting treatment related to our backfill customer at Cool Springs V in Nashville.

雖然 2024 年每股 FFO 預計將低於 2023 年核心業績，但下降的主要原因是與 2023 年第四季融資活動相關的融資成本增加，以及與我們位於納許維爾 Cool Springs V 的回填客戶。

These items have a combined dilutive impact of approximately $0.15 per share split roughly evenly between the 2. We expect Cool Springs V will generate negative NOI in 2024. However, based on the modified lease we've discussed and the solid interest we're seeing from prospects, we believe Cool Springs V will be a significant driver of growth in future years. This is also the case in Tampa and Atlanta based on signed, but not yet commenced the leases.

這些項目的綜合稀釋影響約為每股 0.15 美元，兩者大致平均分配。我們預計 Cool Springs V 將在 2024 年產生負 NOI。但是，根據我們討論過的修改後的租賃以及我們看到的堅實興趣從前景來看，我們相信Cool Springs V 將成為未來幾年成長的重要動力。坦帕和亞特蘭大的情況也是如此，基於已簽署但尚未開始的租約。

In addition, we have meaningful future growth potential from our development pipeline. We delivered 3 properties in late 2023; 2827 Peachtree, Granite Park Six and Glenlake Three. On a combined basis, these properties are projected to be roughly neutral to 2024 FFO as we will stop capitalizing interest later this year. However, we have healthy prospect activity for these properties, which should provide growth to NOI, FFO and cash flow in future years.

此外，我們的開發管道還具有巨大的未來成長潛力。我們於 2023 年底交付了 3 處房產； 2827 Peachtree、花崗岩公園六號和格蘭萊克三號。綜合來看，這些房產預計對 2024 年 FFO 大致呈中性，因為我們將在今年稍後停止利息資本化。然而，我們對這些資產的前景看好，這應該會在未來幾年為 NOI、FFO 和現金流帶來成長。

In summary, our balance sheet is in excellent shape, our high-quality Sunbelt portfolio is located in the BBDs where talent wants to be, and our team is cycle-tested and optimistic about future value creation.

總而言之，我們的資產負債表狀況良好，我們高品質的 Sunbelt 投資組合位於人才嚮往的 BBD，我們的團隊經過了周期測試，對未來的價值創造持樂觀態度。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions) We do have our first question registered comes from Blaine Heck from Wells Fargo.

（操作員說明）我們確實收到了來自富國銀行的 Blaine Heck 的第一個問題。

Okay. Great. So it sounds like leasing has picked up but some context would be great. So I guess, can you talk about the overall leasing pipeline that you guys are working on right now? How the size of that pipeline or activity levels compares with what you saw last year? Maybe what the mix is between new and renewal leases and whether the composition has changed at all from a tenant size or industry perspective?

好的。偉大的。聽起來租賃業已經興起，但了解一些背景就更好了。所以我想，您能談談您目前正在研究的整體租賃管道嗎？與去年相比，該管道的規模或活動量如何？也許新租約和續租租約之間的組合是什麼，從租戶規模或產業角度來看，其組成是否發生了根本變化？

Sure, it's Ted. I'll start, and maybe Brian can add to it. Look, obviously, we are pleased with our leasing in the fourth quarter just shy of 700,000 feet. We did 100 deals, which was sort of right on par with our historical average. 44 of those were new leases. We also had 7 new-to-market customers, primarily companies that were opened up small regional offices, 2,000 or 3,000 square feet. So no big inbound relocations.

當然，這是特德。我先開始，也許布萊恩可以補充。顯然，我們對第四季度的租賃高度接近 700,000 英尺感到滿意。我們做了 100 筆交易，這與我們的歷史平均值相當。其中 44 份是新租約。我們還有 7 個新進入市場的客戶，主要是開設了 2,000 或 3,000 平方英尺小型區域辦事處的公司。所以沒有大規模的入境搬遷。

But look, it's been small. It's the same trend we've seen in the last few years and smaller companies, but a couple of trends we're seeing. And the activity is pretty evenly divided among our markets. But couple of the trends we're seeing is there's really been a gap that's widening between the haves and have-nots for office owners.

但你看，它很小。這與我們在過去幾年和小公司中看到的趨勢相同，但我們看到了一些趨勢。我們的市場之間的活動分佈相當均勻。但我們看到的幾個趨勢是，辦公室業主的富人和窮人之間的差距確實在擴大。

We're hearing from brokers that some companies won't even tour buildings that have debt and certainly near-term maturities, sort of a binary qualifier for some buildings. And I think the brokers, as I think I've talked about on prior calls, they're doing a really good job this cycle of understanding the capital stack for office buildings. So I think just given the amount of debt maturities that are coming up, this really plays to our strength, and we're out talking to brokers. We've got a highly unencumbered portfolio. We don't have a lot of single asset secured loans.

我們從經紀人那裡得知，有些公司甚至不會參觀有債務且肯定是近期到期的建築物，這對某些建築物來說是一種二元限定符。我認為經紀人，正如我在之前的電話中談到的那樣，他們在這個週期中做得非常好，了解辦公大樓的資本堆疊。因此，我認為考慮到即將到期的債務數量，這確實發揮了我們的優勢，我們正在與經紀人交談。我們擁有一個高度不受阻礙的投資組合。我們沒有很多單一資產擔保貸款。

So we're taking advantage of the situation. And I think we're capturing -- we're trying to capture more than our fair share always, but I think we've been able to do that, in the last -- certainly, last couple of quarters. And as you know, as we stated in our prepared remarks, we're off to a great start this quarter. So another trend, look, we are seeing -- larger deals are starting to come back, while it's been the last year or so, smaller deals, the 25s to 50ns, we're seeing a lot more of those.

所以我們正在利用這種情況。我認為我們正在捕獲——我們一直在努力捕獲超出我們公平份額的份額，但我認為我們在過去——當然是過去幾個季度——已經能夠做到這一點。如您所知，正如我們在準備好的發言中所述，我們本季有一個良好的開端。所以，看，我們看到了另一個趨勢——較大的交易開始回歸，而這是去年左右的事，較小的交易，25 到 50 秒，我們看到了更多這樣的交易。

A trend -- another trend probably is the smaller companies are the ones that are growing and the larger companies are the ones that are shrinking. So we're starting to see more of that. We had, I think, 13 expansions, as I mentioned earlier. Companies are also willing to do longer terms. They don't want to come out of pocket for TIs. So they'll give term to get additional TI. I guess the final trend, we always talk about the flight to quality. Certainly, that's real. It's quality buildings, quality amenities and certainly the quality ownership. So I hope that answered your question.

一種趨勢—另一個趨勢可能是較小的公司正在成長，而較大的公司正在萎縮。所以我們開始看到更多這樣的情況。正如我之前提到的，我認為我們有 13 個擴充包。公司也願意簽訂更長的合約。他們不想為 TI 自掏腰包。所以他們會給予期限以獲得額外的 TI。我猜最終的趨勢是，我們總是談論向品質的飛躍。當然，這是真的。這是優質的建築、優質的設施，當然還有優質的所有權。所以我希望這回答了你的問題。

Yes. That's very helpful color there, Ted. I appreciate that. So just switching gears for my second question. Can you just talk about your appetite for investment at this point? Are you guys actively pursuing any opportunities on the acquisition side? Or would you say you're currently more focused on the development lease-up and leasing in the operating portfolio, making sure some of the backfill activity gets done?

是的。特德，這個顏色非常有用。我很感激。所以只是換個話題來回答我的第二個問題。您能談談您目前的投資意願嗎？你們是否在積極尋求收購方面的機會？或者您會說您目前更專注於開發租賃和營運投資組合中的租賃，以確保完成一些回填活動？

Yes. Look, I mean as you know, we're always -- we look at everything that's out there. We certainly -- we answer the phone when we get inbound calls from folks as well. We also stay close to lenders. So as we said, we're actively watching the market, trying to see where the data points are for trades, and I'll talk about one in a second. But -- so we're not -- there's nothing -- we have a lot on our radar, on our wish list that we're just monitoring right now.

是的。聽著，我的意思是，正如你所知，我們總是——我們關注外面的一切。當然，當我們接到人們打來的電話時，我們也會接聽電話。我們也與貸方保持密切聯繫。正如我們所說，我們正在積極觀察市場，試圖了解交易的數據點在哪裡，我稍後會討論一個。但是——所以我們沒有——什麼都沒有——我們的雷達上、我們的願望清單上有很多東西，我們現在正在監控。

I'd say early discussions, but there's nothing imminent without a doubt. But at the same time, look, we're laser focused on filling our backfills. As we all know, we've got several coming up late starting in the fourth quarter this year, leaking over into the first quarter next year.

我想說的是早期的討論，但毫無疑問地沒有什麼迫在眉睫的。但同時，我們正專注於回填材料的填充。眾所周知，我們有幾個項目從今年第四季開始就遲到了，並一直延續到明年第一季。

So our leasing teams are highly focused on that. Again, we like the inbound activity we're seeing on these backfills early. So sort of we're not just laser-focused on one, we're sort of doing both.

因此，我們的租賃團隊高度關注這一點。同樣，我們很高興在早期回填中看到的入站活動。因此，我們不只是專注於其中一個，而是兩者兼而有之。

And I will talk about one trade that's happened as we look at the comps, and there's a couple of others we think are coming, but there was a high-quality building that traded here in Raleigh, just, I don't know, a month or 2 ago, it closed, is a high-quality asset. It actually sold for a higher price than what it did in 2018. It did have some seller -- better-than-market seller financing, but it's basically a 6.5% cap rate if you adjust for the better-than-market seller financing.

我將談論在我們查看比較時發生的一項交易，我們認為還會有其他一些交易，但是在羅利這裡交易了一棟高質量的建築，只是，我不知道，一兩個月前，它關閉了，是一項優質資產。它實際上以比 2018 年更高的價格出售。它確實有一些賣家——優於市場的賣家融資，但如果你根據優於市場的賣家融資進行調整，它基本上是 6.5% 的上限利率。

Maybe it ticked up to just shy of a 7%, something like that. But from our understanding is there's 100 CAs signed, double-digit bids. And so we're a pretty good market for that type of asset. And again, we're watching a few others.

也許它會上升到略低於 7% 之類的東西。但據我們了解，有 100 個 CA 簽署了兩位數的出價。因此，我們對於此類資產來說是一個非常好的市場。再說一遍，我們正在觀察其他一些。

Great. And just to follow up on that. I guess, in this interest rate environment and given where office fundamentals are today, I guess, what pricing metrics would -- you guys are excited about an opportunity. In other words, where is your targeted going in cap rate threshold or IRR threshold or even price per square foot threshold?

偉大的。只是為了跟進。我想，在這種利率環境下，考慮到今天辦公大樓的基本面，我想，定價指標會是什麼——你們對這個機會感到興奮。換句話說，您的上限利率門檻或 IRR 門檻甚至每平方英尺價格門檻的目標在哪裡？

Yes. Look, obviously, discount replacement cost is one bar for us in this environment. Again, it's -- I mentioned the playbook we used coming out of GFC, we bought a lot of partially leased assets with a lot of upside. So cap rates pretty irrelevant for us. We look at a stabilized cap rate, and we would love to take some leasing risk if we can get the asset at the right price and then lease it up ourselves.

是的。顯然，在這種環境下，折扣更換成本對我們來說是一個障礙。再說一次，我提到了我們在全球金融危機中使用的策略，我們購買了很多部分租賃的資產，這些資產有很大的上升空間。因此上限利率對我們來說非常無關緊要。我們著眼於穩定的上限利率，如果我們能夠以合適的價格獲得資產，然後自己租賃，我們願意承擔一些租賃風險。

And so obviously, we're looking at -- we think we're going to be able to get some acquisitions at a pretty attractive yields and what those are. I guess we'll have to see. But I think acquisitions are going to pencil better than development, I think, for the next couple of years. So again, we'll just have to see what the risk-adjusted return is.

顯然，我們正在考慮——我們認為我們將能夠以相當有吸引力的收益率進行一些收購，以及這些收購是什麼。我想我們得看看。但我認為，在接下來的幾年裡，收購將比開發更好。再說一次，我們只需要看看風險調整後的報酬率是多少。

Our next question comes from Michael Griffin from Citi.

我們的下一個問題來自花旗銀行的麥可‧格里芬。

Great. Maybe just sticking back on the leasing front. Are you noticing tenants, are they quicker to make decisions about leasing space? Are the time still elongated in making decisions. Any color around that would be helpful?

偉大的。也許只是回到租賃方面。您是否注意到租戶，他們是否更快做出租賃空間的決定？做決定的時間還拉長嗎？周圍有什麼顏色會有幫助嗎？

Yes, Michael, it's -- unfortunately, it's still elongated. It's been slow on the decision-making. I mean deals we thought might close one quarter, getting pushed a quarter, sometimes 2 quarters. So decision-making is still taking time. I do think that we are seeing some of the larger users that have been kicking the can. They're now starting to make decisions. They understand what the return to work policies are of the companies.

是的，邁克爾，不幸的是，它仍然被拉長。決策過程進展緩慢。我的意思是，我們原以為可能會在一個季度完成的交易，卻被推遲了一個季度，有時甚至是兩個季度。因此，決策仍需要時間。我確實認為我們看到一些較大的用戶已經開始嘗試。他們現在開始做出決定。他們了解公司的重返工作崗位政策是什麼。

So while the decisions are going to be -- take longer to get done, they are going to make those decisions instead of delaying them for a year, 1.5 years, whatever. So more deals are going to get done over time, but it's still taking more time.

因此，雖然這些決定需要更長的時間才能完成，但他們會做出這些決定，而不是推遲一年、1.5 年等等。因此，隨著時間的推移，將會完成更多的交易，但這仍然需要更多的時間。

Michael, I might add. This is Brian. Just one little footnote to what Ted said is that, and we're guilty of this. A lot of tenants or customers in the market have gotten engaged, maybe farther out from exploration than they might have in the past. So they actually have a little bit of free board to take longer. While at the same time, when you look at the kind of the national portfolio or the portfolio in our submarkets, there's a natural role and that's coming due, and that forces decisions.

邁克爾，我想補充一下。這是布萊恩。這只是特德所說的一個小腳註，我們對此感到內疚。市場上的許多租戶或客戶已經參與進來，可能比過去更遠離探索。所以他們實際上有一點免費膳食可以花更長的時間。同時，當你看看國家投資組合或我們子市場的投資組合的類型時，你會發現這是一個自然的角色，而且即將到來，這會迫使你做出決定。

And so we're starting to see that. I think there were some kind of kick the can 1 year, 2 year, that definitely happened during the pandemic. But now as you start to get that cross lines of debt maturities and assets we're competing against and roll, you are starting to see some folks make -- have to make decisions.

所以我們開始看到這一點。我認為一年、兩年期間確實發生了一些事情，這在大流行期間確實發生了。但現在，當你開始了解我們正在競爭和滾動的債務期限和資產的交叉線時，你開始看到一些人必須做出決定。

That's helpful. This is Nick Joseph here with Michael. Just on the potential Pittsburgh asset sales. Can you provide an update on where those stand, how that plays into the capital plan for 2024 and then kind of the timing around it, just given some of the lease expirations later this year?

這很有幫助。我是尼克·約瑟夫和邁克爾。只是關於匹茲堡潛在的資產出售。您能否提供最新情況，說明這些情況、這如何影響 2024 年的資本計劃，以及考慮到今年稍後一些租賃到期的具體時間安排？

Yes, Michael (sic) [Nick] it's Ted. Look, on Pittsburgh, as you all know, we announced in the third quarter '22 that our intention was to exit Pittsburgh. We didn't put a time line on it. And just as a reminder, we announced back in 2019 that we're going to get out of Memphis and Greensboro. It ultimately took us about 3 years to get out of those markets.

是的，麥可（原文如此）[尼克]，我是泰德。看，在匹茲堡，眾所周知，我們在 22 年第三季宣布我們打算退出匹茲堡。我們沒有設定時間軸。提醒一下，我們早在 2019 年就宣布我們將退出孟菲斯和格林斯伯勒。最後我們花了大約三年的時間才退出這些市場。

So our intention is still to exit Pittsburgh, but just given a very difficult capital market environment for office and then layer on a very big office -- big office transactions. It's just -- it's not an opportune time. So we are focused on leasing up the vacancies, the upcoming vacancies and just running the assets like we normally would.

因此，我們的意圖仍然是退出匹茲堡，但只是考慮到辦公室的資本市場環境非常困難，然後進行一個非常大的辦公室——大型辦公室交易。只是——現在不是一個合適的時機。因此，我們專注於租賃空缺職位、即將出現的空缺職位以及像平常一樣營運資產。

And Nick, this is Brendan. Just in terms of the capital plan for the year, there really isn't anything that we don't need any of those proceeds. I mean we have over $900 million of existing liquidity. We'll spend some money on the development pipeline. But even if we didn't sell anything during the year, I think from a sources and uses standpoint, we've got ample liquidity for several years.

尼克，這是布倫丹。就今年的資本計畫而言，我們確實沒有不需要這些收益的地方。我的意思是，我們現有的流動資金超過 9 億美元。我們將在開發管道上花一些錢。但即使我們今年沒有出售任何東西，我認為從來源和使用的角度來看，我們幾年來都有充足的流動性。

Our next question comes from Rob Stevenson from Janney.

我們的下一個問題來自 Janney 的 Rob Stevenson。

Ted, given your comments about brokers not touring assets with debt issues, are these just turning into zombie buildings that can't fund TIs and no longer competitive. Is there something else that's going on there?

Ted，鑑於您對經紀人不遊覽有債務問題的資產的評論，這些是否只是變成了無法為 TI 提供資金且不再具有競爭力的殭屍建築。那裡還有其他事情發生嗎？

Look, I think some of those are -- it's exactly right. And you also got a -- anybody who's got a -- yes, anybody who has got a loan coming up with a secured loan, they're having discussions with their lender right now, right? So it's -- the lender wants to pay down, the borrower may not be willing to do a pay down. So you've just got those -- the tension in the room, I think, between a lot of lenders and borrowers.

聽著，我認為其中一些是完全正確的。而且你還有--任何有--是的，任何獲得擔保貸款的人，他們現在正在與貸方進行討論，對嗎？所以，貸方想要還款，借款人可能不願意還款。因此，我認為，許多貸方和借款人之間存在緊張關係。

So right now, yes, who's going to fund the TIs? Is the lender going to do it if they haven't worked out an extension with the borrower. So I think they are difficult conversations that are going on with a lot of loans that are have near-term maturities.

那麼現在誰將為 TI 提供資金呢？如果貸款人沒有與借款人達成延期協議，他們會這樣做嗎？因此，我認為對於許多近期到期的貸款來說，這是一場艱難的對話。

And have you guys seen lenders taking good quality assets back in your core markets? Or is it just the sort of lower-tier assets that we're seeing as the headlines and they're just kicking the can down the road on the better quality assets?

你們是否看到貸款人將優質資產帶回你們的核心市場？或者這只是我們所看到的頭條新聞中的那種較低級別的資產，而他們只是在更優質的資產上踢球？

Yes. I think that's generally it. Lower quality typically -- the prior cycles, lower quality is what goes back first. So we're starting to see it, but there have been a -- I'd say, maybe a handful of high-quality assets that have, in fact, gone back to lenders over the past 12 to 15 months. I think there's going to be some more.

是的。我想大體就是這樣。通常品質較低——在先前的周期中，首先返回的是較低品質。所以我們開始看到這一點，但我想說，事實上，在過去 12 到 15 個月裡，可能有一些優質資產回到貸方手中。我想還會有更多。

So it's just -- you just got to be patient. But coming out of the GFC, we did not buy-in high-quality assets until 2012 and '13, GFC started '08 or '09. So it takes a few years just to cycle through the quality of the assets we want. So we've got several on our radar on our -- what we call our wish list. But again, it's just going to -- we'll have to be patient.

所以這只是——你必須要有耐心。但走出全球金融危機後，我們直到2012年和'13年才買進優質資產，全球金融危機始於'08或'09年。因此，僅僅需要幾年的時間來檢驗我們想要的資產的品質。因此，我們已經在我們的雷達上找到了一些——我們稱之為「願望清單」。但同樣，我們必須要有耐心。

Okay. And then just to ask the leasing question in a different way. How rational are your markets today? Are you seeing -- are there landlords overpaying for occupancy out there and driving cost up? Or are people remaining fairly reasonable at this point given market conditions and length of lease, et cetera?

好的。然後以不同的方式詢問租賃問題。今天您的市場有多理性？您是否看到—是否有房東為入住支付過高費用並導致成本上漲？或者考慮到市場條件和租賃期限等因素，人們目前仍然相當理性嗎？

Yes. Look, I think this environment, it's similar to what the office market experience is during any economic downturn, right? It becomes a tenant's market. So you got not knowing what each intention is and what the situation is with each building landlord, there's -- landlords are getting very aggressive. Vacancy is increasing. You got increased sublease space. Capital costs are increasing.

是的。你看，我覺得這個環境，跟經濟不景氣的時候辦公室市場的體驗是差不多的吧？它變成了租戶市場。所以你不知道每個人的意圖是什麼，也不知道每棟大樓的房東的情況如何，房東變得非常咄咄逼人。空缺正在增加。您獲得了更多的轉租空間。資本成本正在增加。

So look, there's -- I would argue there's some irrational deals going on, but we're highly competitive as well. We're going to compete for all the leases, but it's just a -- it's a tenant's market and it's an environment that we saw -- we see every 10 or 15 years.

所以看，我認為存在一些不合理的交易，但我們也具有很強的競爭力。我們將爭奪所有租賃權，但這只是一個租戶市場，這是我們每 10 年或 15 年看到一次的環境。

Okay. And then, Brendan, just to follow up on that, tenant improvements that you mentioned in your comments, up almost $20 million year-over-year, like 23%, like $94 million and change. Given the amount of rollover in leasing, that you guys are slated to do in '24 and '25. What are you guys budgeting there? Is it likely to remain elevated at these levels over the next year or 2 until you get the occupancy up?

好的。然後，布倫丹，我想跟進一下您在評論中提到的租戶改進，同比增長近 2000 萬美元，比如 23%，比如 9400 萬美元，還有變化。考慮到租賃的展期量，你們計劃在 24 年和 25 年進行。你們那裡的預算是多少？在未來一兩年內，在入住率上升之前，它是否有可能保持在這些水平？

Yes, Rob, that's a good question. We think it's probably more likely to kind of migrate down during 2024 at least. That's what we kind of have baked into the outlook. So I expect a lot of '23 was all of the leasing volume, particularly the new leasing volume that was done in '22, a lot of those dollars got spent in '23 and it was an above-average amount.

是的，羅布，這是個好問題。我們認為至少在 2024 年期間更有可能下​​降。這就是我們對前景的看法。因此，我預計 23 年的大部分租賃量，特別是 22 年完成的新租賃量，其中許多美元都在 23 年花費了，而且金額高於平均水平。

I think 24% is likely to look more like a normalized year. So our expectations are we'll see those numbers come down and will look more like probably prior years that you saw before prior to 2023 in terms of that spend.

我認為 24% 可能看起來更像是正常化的一年。因此，我們的期望是，我們會看到這些數字下降，並且在支出方面看起來更像是 2023 年之前的前幾年。

So might be in the kind of $15 million to $20 million reduction range would be our expectation. But again, that -- it's that is based on kind of the current business plan. I think it would be a nice result if leasing volume remains very high, the way that it has for the first month of the year here, and we spend a lot of capital. If that's the case, I think we'd be happy with that result.

因此，我們的預期可能會減少 1500 萬至 2000 萬美元。但同樣，這是基於當前的商業計劃。我認為，如果租賃量保持很高（就像今年第一個月的情況），並且我們花費了大量資金，那將是一個很好的結果。如果是這樣的話，我想我們會對這個結果感到滿意。

But I think our expectation and what's in the business plan now is it's going to look much more -- spend is going to look much more like it did prior to 2023, but we'll see kind of how that goes.

但我認為我們的期望以及現在商業計劃中的內容是，支出將看起來更像 2023 年之前的情況，但我們將看到情況如何發展。

Our next question comes from Nick Thillman from Baird.

我們的下一個問題來自貝爾德 (Baird) 的尼克·蒂爾曼 (Nick Thillman)。

Maybe starting with some comments from Ted or Brian on kind of the lease term dynamics you guys are -- you commented on earlier. Some of your West Coast peers had mentioned that tenants are kind of seeking like shorter-term deals, but that doesn't really seem to be the case for like your guys' markets based on lease duration increased quarter-over-quarter for the last 4 to 5 quarters. I guess what's driving that? Is that just the type of tenants in your markets or the size of your tenants?

也許從泰德或布萊恩關於你們之前評論過的租賃期限動態的一些評論開始。你們的一些西海岸同行提到，租戶有點尋求短期交易，但對於你們的市場來說，情況似乎並非如此，因為租賃期限在過去一個季度中逐季增加4到5個季度。我猜是什麼推動了這一點？這只是您市場中租戶的類型還是租戶的規模？

Nick, it's Brian. I think it's probably just the conviction of the folks who are opting to make the workplace a priority. So the return to work is and return of the office has got team here in our markets. And I think folks have kicked the can and done the shorter-term deals previously. So that's where we're getting conviction and a little larger size. I don't know if it's anything other than that. I don't think it's some weird stat that popped out, but that's what we're seeing.

尼克，這是布萊恩。我認為這可能只是那些選擇將工作場所放在首位的人的信念。因此，重返工作崗位和辦公室的回歸已經在我們的市場中得到了團隊的支持。我認為人們之前已經完成了短期交易。這就是我們獲得信念和更大尺寸的地方。我不知道除此之外還有什麼。我不認為這是一些奇怪的統計數據，但這就是我們所看到的。

And maybe following up on that, Brian. Just on Orlando and specific. You didn't call it out in your commentary, but rate change there was over 22%. So anything to call out in that specific market. What you're seeing, whether it be like tenant type or the type of deals you're doing that?

也許會跟進這個問題，布萊恩。只是關於奧蘭多的具體情況。您在評論中沒有指出，但匯率變化超過 22%。所以在這個特定的市場上有什麼值得指出的。您所看到的，無論是租戶類型還是您正在進行的交易類型？

Well, I think what's interesting about Orlando, right, there's so many macro glacial trends that are heading to Orlando in Central Florida and Florida. And so there's zero new development underway. There is zero new development that's been added as competitive. And so we have well-positioned assets. We've been able to invest in them kind of through this period.

嗯，我認為奧蘭多有趣的地方是，有很多宏觀冰川趨勢正在前往佛羅裡達州中部和佛羅裡達州的奧蘭多。因此正在進行的新開發案為零。被加為具有競爭力的新開發項目為零。因此，我們擁有定位良好的資產。在此期間，我們已經能夠對它們進行投資。

So some of the earlier questions about Zombie buildings, not only did that talk about funding TI and commissions, that also is difficult to fund to kind of repositionings or what we call highwoodtizing where we kind of upgrade the experience.

因此，之前關於殭屍建築的一些問題，不僅涉及資助 TI 和佣金，而且很難為重新定位或我們所說的升級體驗提供資金。

So we've done that kind of right through the pandemic in terms of our workplace [mix]. And I think the Orlando portfolio has been the beneficiary of that. We've leaned into our spec suites. So Orlando has kind of caught up to the rest of her partners across the markets, and that's why we're seeing such great results there.

因此，在疫情期間，我們在工作場所[組合]方面做到了這一點。我認為奧蘭多投資組合是其中的受益者。我們已經開始研究我們的規格套件。因此，奧蘭多在某種程度上已經趕上了市場上的其他合作夥伴，這就是為什麼我們在那裡看到如此出色的結果。

That's helpful. And then maybe last one for me. On the dispositions, maybe can we break out the difference between just land sales and regulated property sales? And then kind of -- are we going to assume more of these bite-sized deal similar to the one you did in Nashville in 4Q, like $25 million to $30 million transaction?

這很有幫助。然後也許是我的最後一個。在處置上，也許我們可以區分單純的土地銷售和受監管的房地產銷售之間的差異？然後，我們是否會假設更多類似第四季度在納許維爾所做的交易，例如 2500 萬至 3000 萬美元的交易？

Sure. So just let me summarize what we did for dispositions in 2023. We closed roughly $104 million of dispos that included both land and buildings. There was 4 buildings, totaling $83 million and then $21 million of land in 2 separate parcels, as sort of a mix between single customer buildings and multi-customer buildings and then the land.

當然。因此，讓我總結一下我們在 2023 年的處置工作。我們完成了大約 1.04 億美元的處置，其中包括土地和建築物。有 4 棟建築，總價值 8,300 萬美元，然後是 2,100 萬美元的土地，分佈在 2 個獨立的地塊中，有點像單一客戶建築和多客戶建築以及土地的混合體。

We've sold them throughout the year. The cap rates range really high 5s for a single customer long-term lease to low 9s for the multi-customer with sort of a low WALT. So most recently, it was Ramparts in the fourth quarter. It was 97% lease building, 3.5-year WALT, and that was sort of low 9 cap rate. So I think that mix is sort of what you'll see this year as well. It's going to be probably a mix of land and multi-tenant buildings. This may not have any single tenant. I need to think about that.

我們全年都在銷售它們。單一客戶長期租賃的資本化率非常高，為 5 美元；對於 WALT 較低的多客戶來說，資本化率則為 9 美元。最近，是第四季的《城牆》。 97% 為租賃建築，3.5 年期 WALT，資本化率較低，為 9。所以我認為今年你也會看到這種混合。它可能是土地和多租戶建築的混合體。這可能沒有任何單一租戶。我需要考慮一下。

But we do have about $79 million under contract and due diligence, and we think that will close somewhere in the first half of the year, and that's sort of multi-tenant similar to what we saw last year on the multi-tenant side. Smaller assets. Those are the ones that are easier to get done. Smaller is easier and larger is harder. And so it's a very similar mix, probably what you'll see this year.

但我們確實有大約 7900 萬美元的合約和盡職調查資金，我們認為這將在今年上半年的某個時候結束，這有點類似於我們去年在多租戶方面看到的情況。資產規模較小。這些是更容易完成的。越小越容易，越大越難。所以這是一個非常相似的組合，很可能你今年就會看到。

Our next question comes from Camille Bonnel from Bank of America.

我們的下一個問題來自美國銀行的卡米爾·博內爾。

Good to see the progress on backfilling some of your larger expiries. Just given your strategic priorities of renewing tenants as early as possible, how are the early renewal discussions tracking in your leasing pipeline?

很高興看到回填一些較大到期日的進展。鑑於您儘早續約租戶的策略重點，您的租賃管道中的早期續約討論進度如何？

Camille, Brian here. They're tracking well. And one of the earlier questions, too, is why we're maybe seeing more term in our portfolio. We're also able to lean in on the TI. As Ted mentioned earlier, customers would trade that TI for term, and we have that ability being unencumbered by property level debt in most cases. So I think that's kind of helped.

卡米爾，布萊恩在這裡。他們追蹤得很好。早期的問題之一也是為什麼我們可能會在我們的投資組合中看到更多的術語。我們也可以依靠 TI。正如 Ted 之前提到的，客戶會用 TI 換取期限，而我們有這種能力，在大多數情況下不會受到財產級債務的阻礙。所以我認為這有點幫助。

The other thing, too, is you have that kind of captured audience. So -- and we have that relationships. We lease our own buildings. We operate our own buildings. We manage our own buildings, and so we have that -- those relationships with our customers. So it's a little more of a natural conversation to start thinking about how to upgrade their space to make it as competitive to recruit, retain and return their talent back to the office?

另一件事也是，你擁有這樣的受眾。所以——我們有這種關係。我們租賃自己的建築物。我們經營自己的建築。我們管理自己的建築，因此我們擁有與客戶的關係。因此，開始考慮如何升級他們的空間，使其在招募、留住人才並將其送回辦公室方面具有競爭力，這更像是一個自然的對話？

So are you seeing that activity starts to pick up compared to a year ago? Because we've been hearing like kind of it's just continuing to kick down -- the can down the road?

那麼，與一年前相比，您是否看到活動開始回升？因為我們一直聽到這樣的聲音：它正在繼續下降——路上的罐子？

So yes, let me jump in and try. So I'm thinking about just some of our upcoming maturities. I mean, Brian talked about it in his prepared remarks on, in Buckhead, the 168,000 square feet in September. We've already backfilled 50,000 square feet of that. We have over 350,000 square feet of tour activity and some interest -- a lot of interest in the assets. So we feel good about backfilling that specific space.

所以，是的，讓我嘗試一下。所以我正在考慮我們即將到期的一些項目。我的意思是，布萊恩在 9 月在巴克海特 168,000 平方英尺的準備好的演講中談到了這一點。我們已經回填了其中 50,000 平方英尺。我們擁有超過 350,000 平方英尺的旅遊活動空間和一些興趣——對這些資產有很多興趣。因此，我們對回填該特定空間感覺良好。

And you go up to EQT Plaza, Brian mentioned, we've already backfilled one floor there, and we have interest. We have proposals out on several other floors. So again, the activity has really picked up, I think from mid last year at EQT Plaza. You go to Bass Berry. We're getting ready to start to implement our highwoodtizing plan there. We're still a year out from Bass Berry leaving in February of 2025, but we've got several multi-floor users, that we've got proposals and they're touring on.

你去殷拓廣場，布萊恩提到，我們已經回填了那裡的一層，我們有興趣。我們在其他幾個樓層也提出了建議。再說一次，我認為從去年年中殷拓廣場的活動開始確實有所增加。你去巴斯貝裡。我們正準備開始在那裡實施我們的高林化計劃。距離 Bass Berry 於 2025 年 2 月離開還有一年的時間，但我們已經有幾個多層用戶，我們已經收到了提案，他們正在巡迴演出。

Nothing is etched by any stretch, but just the activity, seeing the tour activity pick up is pretty encouraging from our standpoint.

任何延伸都沒有蝕刻任何東西，但只是活動，從我們的角度來看，看到旅遊活動的增加是相當令人鼓舞的。

Got it. And you've placed a big emphasis on securing additional liquidity in the past year and have been very successful at raising capital. So given you've pretty much covered your capital needs, how much more liquidity are you seeking to raise?

知道了。去年，你們非常重視確保額外的流動性，並且在籌集資金方面非常成功。那麼，鑑於您已經基本滿足了您的資本需求，您還希望籌集多少流動性？

Camille, it's Brendan. I would say that there's not capital that we feel that we need to raise. But I do think, if you go back to just Ted's comments at the beginning of the year -- at the beginning of the script, just talking about continual portfolio improvement. I do think we feel like there are asset sales that we likely will get done.

卡米爾，我是布倫丹。我想說的是，我們認為不需要籌措資金。但我確實認為，如果你回到泰德在年初的評論——在劇本的開頭，只是談論持續的投資組合改進。我確實認為我們可能會完成資產出售。

So I think the capital raising that will get done during this year is likely to be done via asset sales as opposed to -- it's going out to the debt markets, whether it's -- I don't think we envision raising debt capital this year, but I do think we'll get capital in the door through disposition proceeds.

因此，我認為今年將完成的融資很可能透過資產出售來完成，而不是——它會進入債務市場，無論是——我認為我們今年不會籌集債務資本，但我確實認為我們將透過處置收益獲得資金。

Finally, then looking at your cash flows for this next year, has there been discussions with the Board on whether this could -- the dividend could be a source of capital just given the high yield? Or is the view to continue paying it as long as it's covered?

最後，看看明年的現金流，是否與董事會討論過，考慮到高收益率，股息是否可以成為資本來源？還是只要承保就繼續付款？

Sure. Let me start off and maybe Brendan may want to supplement the answer. But look, it's something we talk about virtually every quarter with the Board. As we look at our dividend, it is covered by our cash flow. And we think the dividend is an important part of total return for us. So -- and we've been pretty proactive the last few years with respect to our CapEx spend and our cash flows have been improving.

當然。讓我開始吧，也許布倫丹可能想補充答案。但你看，我們幾乎每季都會與董事會討論這個問題。當我們查看股息時，它是由我們的現金流覆蓋的。我們認為股利是我們總回報的重要組成部分。因此，過去幾年我們在資本支出方面非常積極主動，而且我們的現金流量一直在改善。

So based on the outlook that we see for the business, we feel very comfortable with the dividend at this time.

因此，根據我們對業務的展望，我們對此時的股息感到非常滿意。

Our next question comes from Ronald Kamdem from Morgan Stanley.

我們的下一個問題來自摩根士丹利的羅納德·卡姆德姆。

Just a couple of quick ones. Staying with the dispositions. You talked about 75 in the market, maybe more to come. Any sort of sense on the cap rates on those? And how are you guys thinking about the quality of those assets, seller financing? Just any more color on those would be helpful?

只是幾個快速的。堅持性格。您談到市場上有 75 個，也許還會有更多。這些上限利率有意義嗎？你們如何看待這些資產的品質、賣方融資？只是再多一些顏色會有幫助嗎？

Sure. With respect to what we have in the market, again, they haven't closed. So I'm hesitant to talk about cap rates. Hopefully, we'll have something to talk about maybe next call, Ron. Seller financing, there is one building of what we have out there that we're providing a short-term, I think it's a 12-month short-term financing, very similar to -- I guess earlier last year, we did a 6-month financing on one. So one small asset of that $79 million, we'll have a seller financing for 1 year. But other than that, it's now all equity purchase.

當然。就我們市場上的情況而言，它們還沒有關閉。所以我對談論資本化率猶豫不決。希望下次通話時能聊聊什麼，羅恩。賣方融資，我們有一棟大樓提供短期融資，我認為這是 12 個月的短期融資，非常類似於——我想去年早些時候，我們做了 6 個月的融資一個月的融資。因此，這 7,900 萬美元中的一小筆資產，我們將獲得為期一年的賣方融資。但除此之外，現在都是股權收購。

Ron, I'll just say in terms of cap rates. I think it's fair if you kind of looked at the cap rates and the average sort of blended for 2023. If you thought of something kind of comparable to that in broad strokes, I would say, not with the 75 that we expect in the first half of the year. But just kind of as you think about that over the course of 2024, 2025, I think that's a reasonable gauge to kind of use if you're trying to model that.

羅恩，我只想說上限利率。我認為，如果你看看 2023 年的資本化率和平均混合率，這是公平的。如果你想到了與大體上類似的東西，我會說，而不是我們在第一個預期的 75半年。但正如你在 2024 年、2025 年的過程中所思考的那樣，如果你試圖對此進行建模，我認為這是一個合理的衡量標準。

Helpful. And then my second one is just going back to the questions on sort of the cash flow situation and so forth. So as you think about the lease expirations starting at the back half of this year into '25, potential Pittsburgh sales. Have you guys sort of looked at an analysis of where leverage could potentially go in those scenarios and how you think about preserving cash flows under those scenarios and so forth. So the question really is just with the lease expirations, potential Pittsburgh sale, how does the balance sheet leverage sort of trend onto those?

有幫助。然後我的第二個問題只是回到有關現金流狀況等問題。因此，當您考慮從今年下半年開始到 25 年的租約到期時，匹茲堡的潛在銷售情況。你們是否分析過在這些情況下槓桿可能會走向何方，以及你們如何考慮在這些情況下保留現金流等等。因此，問題實際上只是隨著租賃到期、匹茲堡潛在的出售，資產負債表如何利用這些趨勢？

Yes, Ron, it's a good question. So I think we are pretty comfortable with kind of where we are now. Of course, we're going to be spending dollars on the development pipeline as we migrate throughout 2024 and even into 2025 without really a corresponding increase, certainly in '24 on EBITDAre NOI.

是的，羅恩，這是個好問題。所以我認為我們對現在的處境感到非常滿意。當然，隨著我們在 2024 年甚至 2025 年進行遷移，我們將在開發管道上投入資金，但不會真正相應增加，尤其是在 24 年的 EBITDAre NOI 上。

So I think you'll see a little bit of upward movement in the debt-to-EBITDAre ratio as you kind of go throughout the year. But that is going to be then will come down as those development properties deliver and stabilize and generate significant amounts of NOI. So with all of that, I think we're very comfortable kind of when we forecast even when we get to peak levels of debt-to-EBITDA, where we'll be. With them, the embedded growth that, that number will come down.

因此，我認為，隨著全年的發展，債務與 EBITDA 比率會略有上升。但隨著這些開發物業的交付、穩定並產生大量 NOI，這種情況將會下降。因此，我認為，即使我們的債務與息稅折舊攤銷前利潤 (EBITDA) 之比達到峰值水平（即我們將達到的水平），當我們進行預測時，我們還是感到非常放心。有了他們的嵌入成長，這個數字將會下降。

And all the while, I think we're very comfortable also with where our cash flows are with respect to the dividend. So I think we feel like we've got a lot of a lot of good growth drivers, and we're coming at this from a position of strength if you think about dividend coverage in 2023 going forward. So I think not only do we have a lot of growth drivers with respect to kind of cash flow going forward, we're also coming at it from a position of strength from thinking about it from 2023 levels.

一直以來，我認為我們對現金流與股利的關係也非常滿意。因此，我認為我們感覺我們擁有很多良好的成長動力，如果你考慮到 2023 年未來的股息覆蓋率，我們就處於優勢地位。因此，我認為我們不僅在未來的現金流方面擁有很多成長動力，而且從 2023 年的水平考慮，我們也處於優勢地位。

Our next question comes from Vikram Malhotra from Mizuho.

我們的下一個問題來自 Mizuho 的 Vikram Malhotra。

This is Georgi on for Vikram. Can you just walk us through the occupancy trajectory in 2024? And can you provide more color on known move-outs over the next 2 years?

這是維克拉姆的喬治。能否向我們介紹 2024 年的入住率軌跡？您能否提供更多有關未來 2 年內已知的搬遷情況的資訊？

Georgi, it's Brendan. I'll start, and then maybe I'll hand it over to Ted or Brian for some color on the large expirations coming up. So as is typical kind of seasonally for us, and we've talked about this in years past, we usually have kind of a seasonal dip in the first quarter. So no single large users, but there's a handful of expirations that happened at the beginning of January that are single floor users. So we expect occupancy to kind of dip a little bit in the first quarter and then sort of hold steady, maybe migrate up a little bit as you kind of migrate into second and third quarters.

喬治，我是布倫丹。我先開始，然後也許我會把它交給 Ted 或 Brian，讓他們對即將到來的大額到期提供一些資訊。因此，對我們來說這是典型的季節性，我們在過去幾年中已經討論過這一點，我們通常會在第一季出現季節性下降。因此，沒有單一的大用戶，但在一月初發生的一些到期事件是單層用戶。因此，我們預計第一季的入住率會略有下降，然後保持穩定，隨著進入第二和第三季度，入住率可能會略有上升。

And then we've got the expiration with Novelis late in the third quarter and then in the beginning of the fourth quarter with EQT. So I think you'll see occupancy kind of low at the end of this year with that average kind of in the range of 87% to 89% as we discussed.

然後我們在第三季末與 Novelis 到期，然後在第四季初與 EQT 到期。因此，我認為今年年底的入住率會較低，正如我們所討論的，平均入住率在 87% 至 89% 之間。

But that doesn't -- I just -- I'll mention this. We have -- and I think Brian talked about this on the call, but we've got about 320,000 square feet of signed, not yet commenced leases just between Cool Springs V, 2500 Century Center and Tampa Bay Park. There's only about 100 of that, that we expect to kind of move into occupancy by year-end '24. So even when you kind of go into '25, there's still a fair amount of leasing that we've done that will come into occupancy in '25.

但這並不——我只是——我會提到這一點。我們已經——我想布萊恩在電話會議上談到了這一點，但我們已經在 Cool Springs V、2500 Century Center 和坦帕灣公園之間簽署了約 320,000 平方英尺的租賃合同，但尚未開始租賃。我們預計其中只有大約 100 套能夠在 24 年底前入住。因此，即使進入 25 年，我們仍然進行了相當多的租賃，這些租賃將在 25 年入住。

So I think -- and then we'll -- we expect to continue to lease space on existing or future vacancy as we kind of go forward throughout '24, which we don't expect to be in occupancy in '24, but will contribute to future years.

因此，我認為 - 然後我們將 - 我們預計將繼續租賃現有或未來的空缺空間，因為我們將在整個 24 年繼續前進，我們預計不會在 24 年入住，但會為未來幾年做出貢獻。

And then this is Ted. Why don't I jump in. I sort of went through a few of the known move-outs. I'll go through quickly one more time. Novelis, we backfilled 50,000 feet. So Novelis is 168,000 feet, September '24. We backfilled 50,000 feet. We have good prospects with 350,000 feet of the remaining 100,000 feet or so, 120,000 feet. So we feel really good there, the activity.

這是特德。我為什麼不加入進來呢？我經歷了一些已知的遷出。我很快就會再講一遍。諾貝麗斯，我們回填了 50,000 英尺。因此，24 年 9 月諾貝麗斯的高度為 168,000 英尺。我們回填了 50,000 英尺。我們對剩下的10萬英尺左右、12萬英尺中的35萬英尺前景看好。所以我們在那裡的活動感覺非常好。

EQT is October '24, 317,000 feet. We've backfilled 16,000 square feet. Basically, I said backfill. We went direct with a subtenant of EQT. So we're happy to do that. We've got pretty good activity on some additional space. So we'll see there. It's still early.

EQT 為 24 年 10 月，海拔 317,000 英尺。我們已經回填了 16,000 平方英尺。基本上，我說的是回填。我們直接與 EQT 的轉租人合作。所以我們很高興這樣做。我們在一些額外的空間上進行了相當不錯的活動。所以我們會在那裡看到。現在還早。

Then Department of Revenue, we have not talked about that one. They're like some -- I think, 255,000 feet that expire at the very end of the year 2024. So they're vacating, but we're -- we've retained them. As we mentioned, the in our prepared remarks, we are moving them. They're downsizing. We're moving within that same park to about 110,000 square feet in a different building.

然後稅務局，我們還沒有談過這個。他們就像一些——我認為是 255,000 英尺，將於 2024 年底到期。所以他們正在撤離，但我們——我們保留了他們。正如我們所提到的，在我們準備好的發言中，我們正在移動它們。他們正在裁員。我們將在同一個公園內搬到另一棟佔地約 11 萬平方英尺的建築內。

We would have loved to keep them in the building they're in. They just -- is just very difficult from a layout perspective. So we've got that. And then on that building, we're actually looking at various scenarios, what the strategy is for the building the DOR is vacating, including a potential residential conversion. So more on that, we'll know more in the next 90 to 120 days, probably with respect to the DOR.

我們希望將它們保留在它們所在的建築物中。從佈局的角度來看，它們只是非常困難。所以我們已經得到了。然後，在那棟建築上，我們實際上正在考慮各種情況，以及 DOR 正在騰出的建築的策略是什麼，包括潛在的住宅改建。因此，我們將在接下來的 90 到 120 天內了解更多信息，可能與 DOR 有關。

We do have a 150 Fayetteville, our headquarter building here in Raleigh that we're sitting in, Wells Fargo is vacating 78,000 square feet at the end of October of this year. And we knew that. We bought this building back in 2021. And it was a known vacate at that point. So we're actually excited to get -- that 78,000 square feet includes about 16,000 square feet of a branch location that's on the first floor of the building that we're going to turn into state-of-the-art amenities for the building, which has been our plan since 2021.

我們確實擁有位於羅利的費耶特維爾 150 號總部大樓，富國銀行將於今年 10 月底騰出 78,000 平方英尺的大樓。我們知道這一點。我們在 2021 年買了這棟建築。當時這是一個眾所周知的空置。因此，我們實際上很高興得到——這 78,000 平方英尺包括約 16,000 平方英尺的分店，該分店位於大樓一樓，我們將把它改造成大樓最先進的設施，這是我們自2021 年以來的計劃。

So we're excited to get that back. It's a lot, about 60,000 square feet to re-lease there, and we've got some really neat plans for that. So that's one we'll get taken care of. And then the Bass Berry, which I mentioned on a prior question that we've got several multi-tenant floors interest in those. Again, early prospects just tour activity, but we feel good given we're still a year away.

所以我們很高興能把它找回來。那裡的面積很大，大約有 60,000 平方英尺可供重新出租，我們為此制定了一些非常巧妙的計劃。這就是我們要處理的問題。然後是 Bass Berry，我在之前的問題中提到過，我們有幾個多租戶樓層對此感興趣。再說一遍，早期的潛在客戶只是旅遊活動，但考慮到我們還有一年的時間，我們感覺很好。

That's very helpful. And just a last one for me. With all the news about tech layoffs, how do you think that translates to your markets?

這非常有幫助。對我來說這只是最後一個。面對所有有關科技公司裁員的消息，您認為這對您的市場有何影響？

Yes. We're not a big tech market. Our -- as you know, Raleigh, more than probably anybody. But in general, we've pretty diversified. customer base. I don't have a lot of exposure to tech. I think several years ago, maybe we wish we did when tech was gobbling up the space. But we don't have a lot of exposure in our markets to tech.

是的。我們不是一個大的科技市場。正如你所知，羅利，我們的——可能比任何人都多。但總的來說，我們已經相當多元化了。客戶群。我對科技的接觸不多。我想幾年前，也許我們希望當科技吞噬這個空間時我們就這麼做了。但我們在市場上並沒有太多接觸科技的機會。

Our next question comes from Dylan Burzinski from Green Street.

我們的下一個問題來自 Green Street 的 Dylan Burzinski。

And just one for me. So I guess just as we think about occupancy dipping throughout 2024 into early 2025, if I sort of pair that up with some of the comments you just made, Brendan, and the comments around sort of good activity on near-term move-outs. I guess, it seems to us that the lease percentage, the drop-off in lease percentage moving forward should be a lot less than the drop-off in occupancy. And therefore, as we think about occupancy into '25 and beyond, you should recover what is lost relatively quickly. Is that fair to say?

只給我一個。因此，我想，就像我們考慮 2024 年至 2025 年初入住率下降一樣，如果我將其與布倫丹您剛剛發表的一些評論以及有關近期搬出的良好活動的評論結合起來。我想，在我們看來，租賃百分比、未來租賃百分比的下降應該遠小於入住率的下降。因此，當我們考慮 25 年及以後的入住率時，您應該相對快速地恢復損失。這麼說公平嗎？

Yes, Dylan, it's a good question. I certainly think that if the activity that we're seeing in terms of prospect activity translates into leases as we're hopeful that it will, that your outlook would prove correct. Now there's execution that needs to get done. So it's not to say that this is -- that's a foregone conclusion.

是的，迪倫，這是個好問題。我當然認為，如果我們在潛在客戶活動方面看到的活動能夠轉化為租賃，正如我們所希望的那樣，那麼您的前景將被證明是正確的。現在需要完成執行。所以這並不是說這是一個既定的結論。

But I think if activity levels hold up and we're able to translate what we think are the good prospect activity into leases, then I do think that, that is -- that your outlook would prove correct.

但我認為，如果活動水平保持不變，並且我們能夠將我們認為良好的前景活動轉化為租賃，那麼我確實認為，也就是說，您的前景將被證明是正確的。

Our next question comes from Peter Abramowitz from Jefferies.

我們的下一個問題來自 Jefferies 的 Peter Abramowitz。

Most of my questions have been answered, but just one here. Have you noticed any change in the last, call it, sort of 60, 90 days as the macro backdrop and the rate backdrop has sort of shifted here? Have you noticed any change in the environment and demand for office buildings in your market in general?

我的大部分問題都已得到解答，但這裡只有一個。您是否注意到過去（稱之為 60 天、90 天）宏觀背景和利率背景發生了某種變化？您是否注意到您所在市場的整體環境和辦公室需求有什麼變化？

I guess just from a general perspective and then also as it relates to the assets that you're out in the market with. I guess, has there been any change in appetite for office transactions?

我想這只是從一般角度來看，而且還與您在市場上擁有的資產有關。我想，對於辦公室交易的興趣有什麼改變嗎？

No, I don't think so. I think the assets we're in the market with have sort of already been tied up. So we don't have a whole lot of real-time data points with respect to that. I do think from what we're hearing is you're going to see some more stuff coming to the market from the brokers. I do think after the year turned, rates came down, brokers are a little bit more confident. There's a lot of dry powder sitting on the sidelines.

不，我不這麼認為。我認為我們在市場上擁有的資產已經被捆綁了。因此，我們沒有大量與此相關的即時數據點。我確實認為，從我們所聽到的情況來看，你會看到更多的東西從經紀人那裡進入市場。我確實認為今年過後，利率下降了，經紀人更有信心了。場外有很多乾粉。

So I would fully expect once buyers have a clear understanding of what their cost of capital is going to be and the availability of capital, it's still tough to get on office alone today. I think virtually all the capital sources, it's very difficult. But I do think it may loosen up in the next 6 to 9 months.

因此，我完全預計，一旦買家清楚地了解他們的資金成本以及資金的可用性，今天獨自上任仍然很困難。我認為幾乎所有的資金來源都是非常困難的。但我確實認為未來 6 到 9 個月內可能會放鬆。

So I think transaction activity is going to pick up, but I think it's going to be in the back half of the year, likely before we see a whole lot of that. But there's a lot of money that still wants to invest.

因此，我認為交易活動將會增加，但我認為這將是在今年下半年，很可能在我們看到大量交易活動之前。但仍有許多資金想要投資。

Our next question comes from Omotayo Okusanya from Deutsche Bank.

我們的下一個問題來自德意志銀行的 Omotayo Okusanya。

Just in regards to the tenant that was moved to cash accounting, which again, I'm assuming is the same tenant taking the Tivity space. Curious again, since you have to move them to cash accounting. How do you kind of get comfortable with the renegotiated lease that, again, 12 months down the line, you're not kind of back in the same situation?

就轉移到現金會計的租戶而言，我再次假設是佔用 Tivity 空間的相同租戶。再次好奇，因為你必須將它們轉移到現金會計。 12 個月後，您不再遇到同樣的情況，您如何接受重新協商的租約？

Yes, Tayo. It's a good question overall. Yes, I mean, I think -- so first of all, the standard to kind of put somebody on GAAP accounting is that you have -- you're more than probable in terms of collecting that rent throughout the duration of the term. So this is a very long-term lease that we have and the business cycle is a little bit uncertain.

是的，泰約。總的來說，這是一個好問題。是的，我的意思是，我認為——所以首先，讓某人採用公認會計準則會計的標準是——你很有可能在整個任期內收取租金。因此，這是我們的一項非常長期的租賃，商業週期有點不確定。

And I think we're comfortable with kind of where we are because there's not a lot of capital that we will incrementally invest into the space and there is a meaningful amount of rent that we expect over the life of the term. But I think just due to being conservative in terms of how we would like to account for this, I think we felt it was prudent, and we talked to our auditors about this to put them on a cash basis.

我認為我們對目前的狀況感到滿意，因為我們不會在該領域逐步投入大量資本，而且我們預計在整個期限內會獲得大量租金。但我認為，由於我們在解釋這一問題上持保守態度，我認為我們認為這是謹慎的，我們與審計師討論了這一點，將其置於現金基礎上。

So it's not to suggest that we don't think that there is collection that's likely or collect a significant amount of rent, but I think just out of an abundance of caution, we move them on a cash basis accounting.

因此，這並不是說我們認為不可能收取或收取大量租金，但我認為出於謹慎考慮，我們將其採用收付實現制會計。

And I will say that, that's not dissimilar from things that we do with other industries that we tend to view as a little bit more volatile than maybe our core customer base. So as an example, most of the retailers that we have within our portfolio, we just move them on a cash basis. That's just standard practice for us.

我想說的是，這與我們在其他行業所做的事情沒有什麼不同，我們往往認為這些行業比我們的核心客戶群更不穩定。舉個例子，我們投資組合中的大多數零售商，我們只是以現金方式轉移它們。這只是我們的標準做法。

So I think we feel very good about the modified lease that's there. I think we feel very optimistic about the long-term outlook for that building in particular, but just out of an abundance of caution, we didn't want to start to record GAAP revenue in '24, given the long-term nature of that lease.

所以我認為我們對修改後的租約感覺非常好。我認為我們對這座建築的長期前景感到非常樂觀，但出於謹慎考慮，考慮到其長期性質，我們不想在 24 年開始記錄 GAAP 收入租。

We currently have no further questions. So I'd like to hand back to the management team for closing remarks. Over to you.

目前我們沒有進一步的問題。我想請管理團隊做總結發言。交給你了。

Well, thanks, everybody, for joining the call today. Thanks for your great questions, and thank you for your interest in Highwoods. And we look forward to talking to you next quarter, if not before. Have a great day.

好的，謝謝大家今天加入電話會議。感謝您提出寶貴的問題，也感謝您對海伍德的興趣。我們期待在下個季度（如果不是之前）與您交談。祝你有美好的一天。

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines. Thank you.

女士們、先生們，今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。謝謝。