Industrial Logistics Properties Trust (ILPT) 2025 Q1 法說會逐字稿

Good morning, and welcome to Industrial Logistics Properties Trust first-quarter 2025 financial results conference call. (Operator Instructions) Please note this event is being recorded.

早安，歡迎參加工業物流地產信託 2025 年第一季財務業績電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the call over to Matt Murphy, Manager of Investor Relations. Please go ahead.

現在我想將電話轉給投資者關係經理馬特墨菲 (Matt Murphy)。請繼續。

Good morning. Joining me on today's call are ILPT's President and Chief Operating Officer, Yael Duffy; Chief Financial Officer and Treasurer, Tiffany Sy; and Vice President, Marc Krohn. In just a moment, they will provide details about our business and our performance for the first quarter of 2025, followed by a question-and-answer session sell-side analysts.

早安.參加今天電話會議的還有 ILPT 總裁兼營運長 Yael Duffy；財務長兼財務主管 Tiffany Sy；以及副總裁 Marc Krohn。稍後，他們將提供有關我們的業務和 2025 年第一季業績的詳細信息，然後是賣方分析師的問答環節。

Please note that the recording and re-transmission of today's conference call is prohibited without the prior written consent of the company. Also note that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws.

請注意，未經公司事先書面同意，禁止錄製和重新傳輸今天的電話會議。另外請注意，今天的電話會議包含《1995 年私人證券訴訟改革法案》和其他證券法所定義的前瞻性陳述。

These forward-looking statements are based on ILPT's beliefs and expectations as of today, April 30, 2025, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call.

這些前瞻性聲明是基於 ILPT 截至 2025 年 4 月 30 日的信念和期望，實際結果可能與我們的預測有重大差異。本公司不承擔修改或公開發布今天電話會議中前瞻性陳述的任何修改結果的義務。

Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, which can be accessed from our website, ilptreit.com. Investors are cautioned not to place undue reliance upon any forward-looking statements.

有關可能導致這些差異的因素的更多資​​訊包含在我們向美國證券交易委員會提交的文件中，您可以從我們的網站 ilptreit.com 上查閱。提醒投資者不要過度依賴任何前瞻性陳述。

In addition, we will be discussing non-GAAP financial measures during this call, including normalized funds from operations or normalized FFO; adjusted EBITDAre; net operating income or NOI; and cash basis NOI. A reconciliation of these non-GAAP measures to net income is available in our financial results package, which can be found on our website.

此外，我們將在本次電話會議中討論非公認會計準則財務指標，包括標準化營運資金或標準化 FFO；調整後的 EBITDAre；淨營業收入或 NOI；和現金基礎淨營業收入。這些非公認會計準則指標與淨收入的對帳表可在我們的財務結果包中找到，您可以在我們的網站上找到。

I will now turn the call over to Yael.

現在我將把電話轉給 Yael。

Thank you, Matt, and good morning. On today's call, I will provide a brief overview of our portfolio, summarize our first-quarter leasing activity, and outline our key areas of focus for the year ahead. Then, Marc will discuss the specifics of our mainland portfolio and leasing pipeline. From there, Tiffany will review our financial results and outlook.

謝謝你，馬特，早安。在今天的電話會議上，我將簡要介紹我們的投資組合，總結我們第一季的租賃活動，並概述我們未來一年關注的重點領域。然後，馬克將討論我們在大陸的投資組合和租賃管道的具體情況。從此，蒂芙尼將審查我們的財務表現和前景。

We started the year with continued demand for our high-quality portfolio of industrial and logistics properties, consistent with the trends we saw throughout 2024. Cash basis NOI grew by nearly 2% compared to the same period last year, and normalized FFO increased 43% year over year and 52% on a sequential quarter basis. We executed over 2.3 million square feet of total leasing activity with occupancy of 94.6%, reflecting a sequential quarter increase of 20 basis points.

今年開始，我們高品質的工業和物流房地產組合需求持續成長，這與我們在 2024 年全年看到的趨勢一致。現金基礎 NOI 與去年同期相比成長了近 2%，而正常化 FFO 較去年同期成長 43%，較上季成長 52%。我們執行了超過 230 萬平方英尺的總租賃活動，入住率為 94.6%，比上一季成長了 20 個基點。

As of March 31, 2025, ILPT's portfolio consisted of 411 distribution and logistics properties in 39 states totaling 60 million square feet. Our well-diversified portfolio is further highlighted by our unique Hawaii footprint consisting of 226 properties totaling 16.7 million square feet.

截至 2025 年 3 月 31 日，ILPT 的投資組合包括 39 個州的 411 個配送和物流物業，總面積達 6,000 萬平方英尺。我們在夏威夷的獨特佈局進一步凸顯了我們多元化的投資組合，包括 226 個房產，總面積達 1,670 萬平方英尺。

Our portfolio has a weighted average lease term of seven years and is anchored by tenants with strong business profiles and stable cash flows. ILPT's Top 10 tenants account for 47% of our annualized rental revenues, and more than 76% of our annualized revenues come from investment grade-rated tenants or from our secure Hawaii land leases.

我們的投資組合的加權平均租賃期限為七年，由業務狀況良好且現金流穩定的租戶組成。ILPT 的前 10 名租戶占我們年租金收入的 47%，而我們年收入的 76% 以上來自投資等級租戶或我們安全的夏威夷土地租賃。

Turning to leasing activity, during the first quarter, we signed 13 new and renewal leases, plus 1 rent reset for over 2.3 million square feet at a weighted average lease term of six years. This resulted in GAAP in cash leasing spreads of 18.9% and 9.8%.

談到租賃活動，在第一季度，我們簽署了 13 份新租約和續約租約，外加 1 份租金調整租約，面積超過 230 萬平方英尺，加權平均租期為 6 年。這導致 GAAP 現金租賃利差分別為 18.9% 和 9.8%。

This activity will increase ILPT's annualized rental revenue by $2.9 million of which 57% has yet to be realized. Our mainland properties accounted for nearly 80% of our renewal activity this quarter, which Marc will provide detail on shortly.

此項活動將使 ILPT 的年租金收入增加 290 萬美元，其中 57% 尚未實現。本季度，我們大陸地區的物業占我們續約活動的近 80%，Marc 將很快提供詳細資訊。

Within our Hawaii portfolio, we signed 492,000 square feet of renewals, including rent recess at rental rates that were 18.2% higher than prior rents with a weighted average lease term of 4.9 years. These results underscore the value of our properties, showcasing our ability to generate organic cash flow growth while also maintaining portfolio stability.

在我們的夏威夷投資組合中，我們簽署了 492,000 平方英尺的續約協議，包括租金減免，租金比之前的租金高出 18.2%，加權平均租賃期限為 4.9 年。這些結果凸顯了我們資產的價值，展示了我們實現有機現金流成長同時保持投資組合穩定的能力。

Turning to our goals for the year ahead, like most industry participants, we are monitoring the evolving landscape surrounding global tariffs. While it remains uncertain how these developments may impact tenant demand and the overall leasing environment, we believe ILPT's portfolio of high-quality assets with its diversified tenant roster is well positioned to withstand some short-term volatility.

談到我們未來一年的目標，與大多數行業參與者一樣，我們正在關注全球關稅不斷變化的情況。雖然這些發展將如何影響租戶需求和整體租賃環境仍不確定，但我們相信，ILPT 的優質資產組合及其多元化的租戶名冊能夠很好地抵禦一些短期波動。

As such, our focus remains on maximizing mark-to-market growth opportunities, maintaining strong tenant retention, and leasing the vacancies within our portfolio, specifically, the 2.2 million square foot undeveloped land parcel in Hawaii and a 535,000 square foot property in Indianapolis.

因此，我們的重點仍然是最大限度地利用市價計價的成長機會、保持強勁的租戶保留率以及租賃我們投資組合內的空置物業，特別是夏威夷的 220 萬平方英尺未開發土地和印第安納波利斯的 535,000 平方英尺的房產。

Another long-term area of focus is evaluating opportunities to improve our balance sheet and reduce leverage. Accordingly, in 2025, we may pursue options to refinance our existing debt and evaluate strategic property dispositions to accomplish these goals.

另一個長期關注領域是評估改善資產負債表和降低槓桿的機會。因此，在 2025 年，我們可能會尋求再融資現有債務的方案並評估策略性財產處置以實現這些目標。

I will now turn the call over to Marc.

現在我將把電話轉給馬克。

Thank you and good morning. As Yael mentioned, we executed over 2.3 million square feet of total leasing during the first quarter. The mainland accounted for over 1.8 million square feet, or 79% of the total leasing. Renewals made up the majority of this activity and included leases with Packaging Corporation of America in Colorado, Refresco Beverages in South Carolina, Sherwin-Williams in Illinois, and Ulta Beauty in Indiana.

謝謝，早安。正如 Yael 所提到的，我們在第一季完成了超過 230 萬平方英尺的總租賃。大陸租賃面積超過180萬平方英尺，佔總租賃面積的79%。續約是此次活動的主要內容，包括與科羅拉多州的美國包裝公司、南卡羅來納州的 Refresco Beverages、伊利諾伊州的 Sherwin-Williams 和印第安納州的 Ulta Beauty 簽訂的租約。

New leasing totaled 437,000 square feet across three properties. These results include a 250,000 square foot lease for a property in Indiana that expired on March 31, 2025. We subsequently entered into a new lease with a replacement tenant at a 45% roll-up in rent and with no downtime. Additionally, this quarter we leased two properties that had been vacant since the first quarter of 2023.

三處物業的新租賃總面積為 437,000 平方英尺。這些結果包括印第安納州一處 25 萬平方英尺的房產租約，該租約將於 2025 年 3 月 31 日到期。隨後，我們與替代租戶簽訂了新的租約，租金上漲了 45%，並且沒有停工期。此外，本季我們租賃了兩處自 2023 年第一季以來一直空置的房產。

Looking ahead, only 4.3 million square feet, or 5.6% of ILPT's total annualized revenue is scheduled to roll by the end of 2026. As we have previously mentioned, we initiate renewal discussions at least 18 months in advance as decision timelines have lengthened for many tenants. We believe this early engagement provides ample opportunity to maximize tenant retention and also mitigates risk by running dual paths in preparing properties for releasing should a tenant decide to vacate.

展望未來，到 2026 年底，ILPT 預計只能實現 430 萬平方英尺的營業額，佔其年度總收入的 5.6%。正如我們之前提到的，由於許多租戶的決策時間已延長，我們至少提前 18 個月啟動續約討論。我們相信，這種早期參與提供了充足的機會來最大限度地保留租戶，並且透過在租戶決定搬走時準備釋放房產的雙重途徑來降低風險。

We are currently tracking 32 deals in our pipeline for more than 7.4 million square feet. We anticipate a near-term conversion of 500,000 square feet, which is in advanced stages of negotiation or at least documentation. Once executed, we expect these leases will yield average roll-ups in rent of 20% on the mainland and 30% in Hawaii, further illustrating the strength of our portfolio.

我們目前正在追蹤 32 筆交易，涉及面積超過 740 萬平方英尺。我們預計近期的改建面積將達到 50 萬平方英尺，目前正處於談判或至少文件簽署的後期階段。一旦執行，我們預計這些租約將在美國本土產生 20% 的平均租金上漲，在夏威夷產生 30% 的租金上漲，進一步說明我們投資組合的實力。

Before I turn the call over to Tiffany, I want to highlight the recent publication of The RMR Group's sustainability report. The report provides comprehensive insights into accomplishments and data regarding our managers' commitment to long-term sustainability goals.

在我將電話轉給蒂芙尼之前，我想強調一下 RMR 集團最近發布的永續發展報告。該報告全面介紹了我們的管理人員對長期永續發展目標的承諾所取得的成就和數據。

We are proud of the progress made to strengthen ILPT's sustainability practices and enhance our transparency and disclosure of initiatives. You can find links to the complete report as well as a supplement specific to ILPT on our website at ilptreit.com.

我們為加強 ILPT 永續發展實踐和提高我們的措施透明度和揭露程度所取得的進展感到自豪。您可以在我們的網站 ilptreit.com 上找到完整報告的連結以及針對 ILPT 的補充內容。

I will now turn the call over to Tiffany.

現在我將把電話轉給蒂芙尼。

Thank you, Marc. Good morning, everyone. Last night, we reported ILPT's financial results for the first quarter of 2025. Normalized FFO of $13.5 million or $0.20 per share increased nearly 43% compared to the same quarter a year ago and 52% on a sequential quarter basis. This exceeded the high end of our guidance by $0.02, driven by percentage rent revenues and recovery of bad debts in Hawaii.

謝謝你，馬克。大家早安。昨晚，我們報告了ILPT 2025年第一季的財務表現。標準化 FFO 為 1,350 萬美元或每股 0.20 美元，與去年同期相比增長近 43%，與上一季相比增長 52%。這比我們預期的高端高出 0.02 美元，這得益於百分比租金收入和夏威夷壞帳的回收。

We ended the quarter with NOI of $87.5 million, cash basis NOI of $83.8 million, and adjusted EBITDAre of $85.3 million, each representing increases on both a year over year and sequential quarter basis. Interest expense decreased to $69.8 million or by $3.4 million compared to the same quarter a year ago, reflecting the decrease in interest rate cap costs over the past year.

本季末，我們的淨營業利潤為 8,750 萬美元，現金基礎淨營業利潤為 8,380 萬美元，調整後息稅折舊攤銷前利潤為 8,530 萬美元，年比和季比均有成長。利息支出與去年同期相比減少 340 萬美元至 6,980 萬美元，反映了過去一年利率上限成本的下降。

As we discussed during our last earnings call, our consolidated joint venture purchased an interest rate cap in February in connection with the extension of its $1.4 billion floating rate loan for $15 million, or $11 million less than the cap purchased in 2024. We expect our interest expense for the second quarter of 2025 to decline to approximately $68.5 million, with $60 million of cash interest expense, net of the cash we receive from our interest rate caps, and $8.5 million of non-cash amortization of financing and interest rate cap costs.

正如我們在上次收益電話會議上所討論的那樣，我們的合併合資企業在 2 月份購買了一個利率上限，以延長其 14 億美元的浮動利率貸款，金額為 1500 萬美元，比 2024 年購買的上限少 1100 萬美元。我們預計 2025 年第二季的利息支出將下降至約 6,850 萬美元，其中現金利息支出為 6,000 萬美元（扣除我們從利率上限收到的現金）以及 850 萬美元的融資和利率上限成本的非現金攤銷。

Turning to our balance sheet, as of March 30, cash on hand was $108 million and restricted cash was $129 million. Our net-debt-to-total-assets ratio was 68.7%, and our net debt coverage ratio was 11.9 times, representing a 50-basis point improvement on a sequential quarter basis and driven by the increase in adjusted EBITDAre for the quarter.

回顧我們的資產負債表，截至 3 月 30 日，庫存現金為 1.08 億美元，受限現金為 1.29 億美元。我們的淨負債與總資產比率為 68.7%，淨負債覆蓋率為 11.9 倍，比上一季提高了 50 個基點，這得益於本季調整後的 EBITDAre 的成長。

As a reminder, all of our debt is currently carried at a fixed rate or a fixed true interest rate cap with a weighted average interest rate of 5.53% as of March 31. Including extension options, ILPT has no debt maturity until 2027.

提醒一下，我們所有的債務目前都以固定利率或固定真實利率上限計息，截至 3 月 31 日的加權平均利率為 5.53%。包括延期選擇權在內，ILPT 的債務到期日為 2027 年。

In closing, we are off to a strong start to the year with solid financial performance and steady demand for our high-quality industrial real estate. Based on the leasing activity both Yael and Marc mentioned earlier, and our expectations for interest expense, we expect normalized FFO for the second quarter to be between $0.19 and $0.21 per share. This guidance includes a one-time benefit of $0.01 per share related to a required remediation payment for a scheduled lease termination.

最後，我們今年開局良好，財務表現穩健，優質工業房地產需求穩定。根據 Yael 和 Marc 之前提到的租賃活動以及我們對利息支出的預期，我們預計第二季的正常化 FFO 將在每股 0.19 美元至 0.21 美元之間。該指引包括每股 0.01 美元的一次性福利，與預定的租賃終止所需的補救付款有關。

That concludes our prepared remarks. Operator, please open the lines for questions.

我們的準備好的演講到此結束。接線員，請打開熱線來回答問題。

(Operator Instructions) Mitch Germain, Citizens Bank.

（操作員指示）Mitch Germain，公民銀行。

Hi, good morning, and thanks for the increased transparency on interest and earnings run rate. To that end, I think, Tiffany, you mentioned a bad debt recovery in the first quarter. Can you provide some details around what the financial impact on the model was?

大家好，早安，感謝您提高利息和獲利運行率的透明度。為此，蒂芙尼，我認為您提到了第一季的壞帳回收。您能否提供一些有關該模型的財務影響的詳細資訊？

Sure. It was around $750,000.

當然。大約是75萬美元。

And that's in revenues right now?

這就是現在的收入嗎？

Yes, it is.

是的。

Great. Marc, I think you mentioned some lengthened timelines, and I'm curious if you -- or maybe it was Yael, I apologize. But I'm curious if you can provide some perspective around what you're seeing real time in the leasing environment.

偉大的。馬克，我想你提到了一些延長的時間表，我很好奇你是否——或者可能是雅爾，我很抱歉。但我很好奇您是否可以提供一些關於您在租賃環境中即時看到的情況的觀點。

Yeah, Mitch, we are still seeing elongated leasing timelines. Tenants with renewals into '26 and '27 in many cases are looking to start that process earlier. There are more people involved in that lease decision process and so as we work through that process, we want to make sure that we're providing us enough time to mitigate risk. And if we get a sense that there might be a potential agency, then we start running dual paths and start marketing the property for prospective new tenants at the same time.

是的，米奇，我們仍然看到租賃時間延長。在許多情況下，續約至 26 年和 27 年的租戶都希望儘早開始這項流程。有更多的人參與租賃決策過程，因此在我們完成流程時，我們希望確保有足夠的時間來降低風險。如果我們感覺可能有潛在的代理機構，那麼我們就會開始採取雙重途徑，同時開始向潛在的新租戶推銷該房產。

That's helpful. And then maybe, can you provide some perspective on -- I think, there are two real notable vacancies. Obviously, there's Indianapolis in the mainland and then there was that large 2 million square foot space in Hawaii. Obviously, I'm assuming they're both in the leasing pipeline today. I'm curious, how the traffic levels are for both of those sites right now.

這很有幫助。然後也許，您能否提供一些觀點——我認為有兩個真正值得注意的空缺。顯然，美國大陸上有印第安納波利斯，夏威夷也有 200 萬平方英尺的大空間。顯然，我假設它們今天都處於租賃階段。我很好奇，這兩個網站目前的流量水準如何。

Hi, Mitch. I'll start, and then Marc can add any color. So for Hawaii, we have seen activity. We have a couple proposals out. We have had a couple prospects not materialized, one due to we had some credit concerns about the tenant; and then another one was having some trouble getting the funding it needed to develop the parcel.

你好，米奇。我先開始，然後馬克可以添加任何顏色。對於夏威夷，我們已經看到了活動。我們提出了幾個建議。我們有幾個前景未能實現，一個是因為我們對租戶的信用存在一些擔憂；而另一家公司在獲取開發該地塊所需的資金方面遇到了一些困難。

And I know there's a lot of attention on the site given that it's such a huge impact to our occupancy, it's about 3.6%. but I just would like to caveat that the annualized rental increases that we got this quarter from our leasing was $2.9 million, which is actually more than the revenue we got from that parcel when it was leased. So just to put it in perspective, I mean, I know there's a lot of attention on it, but it really is immaterial from an annualized revenue perspective.

我知道該網站受到了廣泛關注，因為它對我們的入住率產生了巨大影響，約為 3.6%。但我想指出的是，本季度我們從租賃中獲得的年租金增長為 290 萬美元，這實際上超過了我們租賃該地塊時獲得的收入。所以，從這個角度來看，我知道很多人都關注這一點，但從年收入的角度來看，這確實無關緊要。

And then for the Indianapolis property, we were pretty far along in lease negotiations with the tenant for half the building. It ended up not materializing, and we are actively marketing it, and we have some proposals out, but nothing that's far enough along.

對於印第安納波利斯的房產，我們與租戶就建築物的一半進行租賃談判已經取得了很大進展。它最終沒有實現，我們正在積極推銷它，我們也提出了一些建議，但還不夠深入。

That's helpful. And then, while I have you, Yael, I think this is the first time you seem to have a bit more conviction about leverage reduction. Obviously, it seems like the economics around refis are a bit more favorable today than they've been over the last 24 months.

這很有幫助。然後，當我有你的時候，Yael，我認為這是你第一次對降低槓桿率有更多的信心。顯然，目前再融資的經濟狀況似乎比過去 24 個月好一些。

That makes sense to me. But tell me what's driving your motivation to now beginning the effort to sell properties and are these going to be within a joint venture? Are they assets that are on your balance sheet? Could it include Hawaii? Is there anything -- I'm sure you're going to tell me all options are on the table, but is there anything you can provide as to, a, why now? And b, what could this look like as the process begins to materialize?

我覺得很有道理。但請告訴我，是什麼促使您現在開始努力出售房產，這些房產是否會在合資企業內出售？它們是你的資產負債表上的資產嗎？其中包括夏威夷嗎？有什麼問題嗎——我相信你會告訴我所有選擇都在考慮範圍內，但是你能提供什麼資訊嗎，為什麼是現在？那麼，當這個過程開始實現時，它會是什麼樣子呢？

So all along the way, we have been -- we do get a lot of unsolicited offers for properties within our portfolio and so we evaluate those on a case-by-case basis. And I think we've mentioned this before that it's tricky for us just the way our debt is structured that we need to be able to -- for it to make sense, release it from the from the debt pools.

因此，一路走來，我們確實收到了許多針對我們投資組合中房產的主動報價，因此我們會根據具體情況進行評估。我想我們之前已經提到過，我們的債務結構對我們來說很棘手，我們需要能夠——為了使其有意義，將其從債務池中釋放出來。

But we have been seeing some of the unsolicited offers we've been getting have now been from owner users and so those are usually at a higher valuation and I think that's kind of where some of our optimism around selling assets is coming from. Just, I think, as tenants evaluate their long-term business plans, they would rather own their real estate versus lease it. So I think there might be opportunity there.

但我們發現，我們收到的一些主動報價現在來自業主用戶，因此這些報價通常估值較高，我認為這也是我們對出售資產持樂觀態度的原因之一。我只是認為，當租戶評估他們的長期商業計劃時，他們寧願擁有自己的房地產而不是租用它。所以我認為那裡可能有機會。

And then again, I think for Hawaii, that land is precious. They aren't making any more land in Hawaii. So I think even though it's taking us some time to lease it, I think we feel good on the long-term plan for that parcel. So I don't know necessarily that we're looking to sell that at least today.

再說了，我認為對夏威夷來說，那片土地是珍貴的。他們不會在夏威夷再建造任何土地。因此，我認為儘管我們需要花一些時間來租賃它，但我認為我們對該地塊的長期計劃感到滿意。所以我不確定我們是否至少在今天就打算出售它。

And then I think the third question was around joint ventures. And right now, there isn't anything active on a joint venture perspective.

我認為第三個問題是關於合資企業。目前，從合資角度來看還沒有任何積極進展。

Thank you.

謝謝。

(Operator Instructions) John Massocca, B. Riley Securities.

（操作員指示） John Massocca，B. Riley Securities。

Good morning. So just kind of as it pertains to, like, first quarter versus kind of what you're expecting in second quarter, was I right hearing that basically both quarters have roughly 1p, maybe kind of back-the-envelope math of kind of one-time positive impact?

早安.因此，就第一季與第二季的預期而言，我是否正確地聽到了基本上兩個季度都有大約 1p，也許是一次性正面影響的粗略計算？

This quarter had 2p. And next quarter, we're forecasting 1p.

本季有 2p。我們預測下個季度將成長 1 便士。

Okay, so I guess, maybe what kind of moving pieces that gets to the low end of the 2Q guidance just given you're going to lose 1p potentially in one-time impact, anything else kind of that could act as the headwind?

好的，所以我想，也許什麼樣的變動因素會導致第二季度指引的低端，因為你可能會在一次性影響中損失 1 便士，還有其他什麼因素可能會成為阻力嗎？

Unforeseen. It depends on leasing activity. We have a pretty good handle on what our leasing activity will be, but the low end allows for some activity there that maybe we weren't expecting. And then also, you never know you could have increases in operating expenses or things like that one-time thing that we may have, so hopefully that's helpful.

意外。這取決於租賃活動。我們對租賃活動的掌握相當好，但低端活動可能有些是我們意想不到的。而且，你永遠不知道營運費用或類似一次性費用是否會增加，所以希望這會有所幫助。

And then bigger picture, same thing you're hearing from tenants in terms of the impact of tariffs, whether that be on utilization? I know you talked a little bit, it's not a new trend that's taking longer to make decisions on renewals. But anything else on that kind of front, whether it be renewals or selling of assets just it's being impacted potentially by some of the tariff noise?

然後從更大的角度來看，您從租戶那裡聽到的關於關稅影響的言論是否與利用率有關？我知道您說了一點，在續約問題上花更長時間做出決定並不是一個新趨勢。但在這方面還有其他事情嗎，無論是續約還是出售資產，都可能受到一些關稅噪音的影響？

It's interesting. I think generally, we anticipate that the tariffs will probably be good for tenant demand for us, but where we really have seen a positive momentum is as tenants look -- we've had a couple of tenants that were out in the market exploring either relocating or built-to-suit opportunities, and I think there's some hesitation around the impact tariffs might have on construction costs.

這很有趣。我認為總體而言，我們預計關稅可能會有利於我們的租戶需求，但我們真正看到的積極勢頭是租戶的看法——我們有幾個租戶在市場上探索搬遷或定制建造的機會，我認為對於關稅可能對建築成本產生的影響存在一些猶豫。

And so I think as they've evaluated those decisions, they've decided that it makes sense to just stay in place and so, if anything, we're getting higher tenant retention because of it, at least in the short term. That's really the most meaningful impact we've seen.

所以我認為，當他們評估了這些決定之後，他們認為維持現狀是合理的，因此，至少在短期內，我們會獲得更高的租戶保留率。這確實是我們所見過的最有意義的影響。

Okay. And then in kind of a similar vein, and I think about the Hawaii portfolio, obviously the Hawaiian economy is very reliant on inbound travel, but just how exposed big picture do you think your portfolio is to kind of inbound travel if we see a pullback, particularly in international travel? How would you kind of anticipate that flowing through the economics of your Hawaii assets?

好的。類似地，我想到夏威夷的投資組合，顯然夏威夷經濟非常依賴入境旅遊，但如果我們看到入境旅遊的回落，特別是國際旅遊的回落，您認為您的投資組合在多大程度上受到入境旅遊的影響？您如何預期這會對您夏威夷資產的經濟狀況產生影響？

I would say very minimal. Our tenant base in Hawaii are generally serving the -- like, the economy are not really related to tourism or more, these are industrial zone land, so they're really servicing the tenants of the people in Hawaii versus relying on tourism. We saw this a lot during COVID where travel -- there were so many travel restrictions, and I think there was a lot of concern how that would impact our tenants, and it really did not have an impact, so.

我想說的是，非常少。我們在夏威夷的租戶群體通常服務於——例如，經濟與旅遊業實際上沒有太大關係，這些都是工業區土地，所以他們實際上服務於夏威夷人民的租戶，而不是依賴旅遊業。在 COVID 期間，我們經常看到這種情況，旅行——有很多旅行限制，我認為人們非常擔心這會對我們的租戶產生什麼影響，但實際上並沒有產生影響。

Okay, I appreciate that color. That's it for me. Thank you.

好的，我很欣賞那個顏色。對我來說就是這樣。謝謝。

Thank you, John.

謝謝你，約翰。

With no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Yael Duffy, President and Chief Operating Officer, for any closing remarks.

如果沒有其他問題，我們的問答環節就結束了。我想將會議交還給總裁兼營運長 Yael Duffy 來做最後演講。

Thank you for joining our call. We look forward to seeing many of you at the upcoming Nareit Conference in June. Please reach out to Investor Relations if you're interested in scheduling a meeting with ILPT. Thank you.

感謝您參加我們的電話會議。我們期待在六月即將舉行的 Nareit 會議上見到你們。如果您有興趣安排與 ILPT 的會議，請聯絡投資者關係部門。謝謝。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。