Kilroy Realty Corp (KRC) 2023 Q2 法說會逐字稿

Hello, and welcome to the Kilroy Realty Corporation 2Q '23 Earnings Conference Call. My name is Elliot, and I'll be coordinating your call today. (Operator Instructions) And I'd like to hand over to Bill Hutcheson, SVP of Investor Relations and Capital Markets. The floor is yours. Please go ahead.

您好，歡迎參加 Kilroy Realty Corporation 2023 年第二季度收益電話會議。我叫埃利奧特，今天我將協調您的電話。 （操作員說明）我想將會議交給投資者關係和資本市場高級副總裁 Bill Hutcheson。地板是你的。請繼續。

Good morning, everyone. Thank you for joining us. On the call with me today are John Kilroy, Chairman and CEO; Justin Smart, our President; Rob Paratte, Chief Leasing Officer and Senior Adviser to the Chairman; and Eliott Trencher, our CIO and CFO.

大家，早安。感謝您加入我們。今天與我通話的是董事長兼首席執行官 John Kilroy；賈斯汀·斯馬特，我們的總裁； Rob Paratte，首席租賃官兼董事長高級顧問；以及我們的首席信息官和首席財務官 Eliott Trencher。

At the outset, I need to say that some of the information we will be discussing during this call is forward-looking in nature. Please refer to our supplemental package for a statement regarding the forward-looking information on this call and in the supplemental. The call is being telecast live on our website and will be available for replay for the next 8 days, both by phone and over the Internet.

首先，我需要說的是，我們在這次電話會議中討論的一些信息本質上是前瞻性的。請參閱我們的補充資料包，了解有關本次電話會議和補充資料中前瞻性信息的聲明。該電話會議將在我們的網站上進行直播，並將在接下來的 8 天內通過電話和互聯網進行重播。

Our earnings release and supplemental package have been filed on a Form 8-K with the SEC, and both are also available on our website. John will start the call with our second quarter highlights. Justin will review our in-process development pipeline, and Eliott will discuss our financial results and provide you with our updated guidance. Then we will be happy to take your questions. John?

我們的收益發布和補充方案已以 8-K 表格的形式向 SEC 提交，也可在我們的網站上獲取。約翰將以我們第二季度的亮點開始電話會議。賈斯汀（Justin）將審查我們正在進行的開發流程，艾略特（Eliot）將討論我們的財務業績並為您提供最新的指導。那麼我們將很樂意回答您的問題。約翰？

Thank you, Bill. Hello, everybody. Thanks for joining us today. As you saw in the press release we issued last night, we recently closed on a $375 million secured financing on a portion of our One Paseo campus in the Del Mar submarket of San Diego. The loan has an 11-year term. It bears interest at 5.9% on a fixed rate, interest-only basis. We ran a competitive process that had a multitude of premier life insurance companies interested in providing the debt, and we're fortunate to execute with a terrific partner in New York Life that originated the entire loan.

謝謝你，比爾。大家好。感謝您今天加入我們。正如您在我們昨晚發布的新聞稿中看到的那樣，我們最近為聖地亞哥德爾馬子市場 One Paseo 園區的一部分完成了 3.75 億美元的擔保融資。該貸款期限為11年。其利率為 5.9%，固定利率，只付利息。我們運行了一個競爭流程，有多家頂級人壽保險公司有興趣提供債務，我們很幸運能夠與紐約人壽的出色合作夥伴一起執行，該合作夥伴發起了整個貸款。

One Paseo is a world-class mixed-use campus. It spans across 36 acres. As a reminder, the portion of One Paseo that we finance is on 23 acres, delivered in phases from 2019 to 2021 and is comprised of roughly 290,000 square feet of office, 95,000 square feet of high-end retail and over 600 luxury apartments.

One Paseo 是一所世界一流的綜合用途校園。它佔地36英畝。需要提醒的是，我們融資的 One Paseo 部分佔地 23 英畝，於 2019 年至 2021 年分階段交付，包括約 290,000 平方英尺的辦公室、95,000 平方英尺的高端零售店和 600 多套豪華公寓。

On prior calls, we've talked about the flight-to-quality dynamic occurring in the leasing market. It is increasingly evident that this theme is also prevalent across the capital markets, and it played to our favor in our One Paseo transaction. Lenders are still open for business on competitive terms for the highest quality properties, and One Paseo certainly fits that description. Occupancy is approximately 95% across the entire project with market-leading rents on the office, residential and retail.

在之前的電話會議中，我們討論了租賃市場中出現的航班質量動態。越來越明顯的是，這一主題在資本市場上也很普遍，並且它在我們的 One Paseo 交易中發揮了作用。貸款人仍然以具有競爭性的條件向最高品質的房產開放業務，One Paseo 無疑符合這一描述。整個項目的入住率約為 95%，寫字樓、住宅和零售的租金處於市場領先地位。

Consistent with our strategy, Kilroy places a premium on optionality. While our existing liquidity position is strong, we decided that being opportunistic in raising incremental capital today would result in better risk-adjusted execution as we prefund future needs and position for future opportunities. The additional liquidity we secured at an attractive rate bolsters our ability to play defense in a softer environment while affording us the option to go on offense when market conditions improve. Eliott will go through what this means for our sources and uses in his remarks.

與我們的戰略一致，Kilroy 非常重視選擇性。雖然我們現有的流動性狀況強勁，但我們認為，今天機會主義地籌集增量資本將導致更好的風險調整執行，因為我們為未來的需求和未來機會的定位做好了準備。我們以有吸引力的利率獲得的額外流動性增強了我們在疲軟環境中防禦的能力，同時為我們提供了在市場狀況改善時進攻的選擇。艾略特將在他的講話中闡述這對我們的來源和用途意味著什麼。

Shifting to the economy, we are increasingly seeing more green shoots. Inflation is cooling, and the labor market appears to be healthy. Near-term recession probabilities have been reduced, and the idea of a soft landing is becoming more plausible. Strategic deal flow is accelerating, and while not at the pricing we like, it is encouraging to see more transactions getting done.

轉向經濟，我們越來越多地看到更多的萌芽。通貨膨脹正在降溫，勞動力市場似乎也很健康。近期經濟衰退的可能性已經降低，軟著陸的想法變得更加可信。戰略交易流正在加速，雖然沒有達到我們喜歡的定價，但看到更多交易完成是令人鼓舞的。

On the leasing front, while deals are taking longer, there is increased tour activity amongst tenants. Large-cap tech companies, which have been laying off employees are showing signs of stabilizing as stock prices have meaningfully outperformed and job postings are starting to slowly increase.

在租賃方面，雖然交易時間更長，但租戶的旅遊活動有所增加。一直在裁員的大型科技公司正顯示出企穩的跡象，因為股價明顯跑贏大市，而且職位發布開始緩慢增加。

Lastly, innovation is alive and well and continues to flourish in markets like ours with the right talent base and infrastructure. While markets change based on where we are in the cycle, the three pillars of our strategy have stayed constant: high-quality properties, strategic capital allocation and a fortress balance sheet. This simple approach allows us to play offense in good times and defense in the challenging times. We believe there will be opportunities in the future, and we are taking steps to ensure that we are ready when the time comes.

最後，創新充滿活力，並且在像我們這樣擁有適當人才基礎和基礎設施的市場中繼續蓬勃發展。雖然市場會根據我們所處的周期而變化，但我們戰略的三大支柱保持不變：高質量房產、戰略資本配置和堡壘資產負債表。這種簡單的方法使我們能夠在順境中進攻，在困難時期防守。我們相信未來會有機會，我們正在採取措施，確保時機成熟時做好準備。

Our goal remains the same: own and operate the highest quality portfolio of mixed-use office and Life Science properties clustered in innovative supply-constrained markets.

我們的目標保持不變：擁有並經營聚集在供應受限的創新市場中的最高質量的混合用途辦公和生命科學物業組合。

Turning to office fundamentals. In-person work continues to pick up momentum as major employers require their people to return to office. Recent announcements from Meta, Google and AT&T amongst many others, demonstrate that management teams see the benefit the office has on productivity, collaboration and culture building. The data is backing up the narrative as the percent of job postings that are remote has declined 900 basis points since 2022.

轉向辦公室基礎知識。隨著主要雇主要求員工重返辦公室，面對面工作繼續保持強勁勢頭。 Meta、Google 和 AT&T 等公司最近的公告表明，管理團隊看到了辦公室在生產力、協作和文化建設方面的好處。數據支持了這一說法，因為自 2022 年以來，遠程職位發布的百分比下降了 900 個基點。

As we've been saying, the key is getting employees back to the office with more commuters in foot traffic, our cities are starting to come back to life. Seattle is a prime example as Amazon employees have been crowding the streets of South Lake Union and the Denny Regrade since May.

正如我們一直所說的，關鍵是讓員工回到辦公室，並增加通勤者的人流量，我們的城市開始恢復生機。西雅圖就是一個典型的例子，自 5 月份以來，亞馬遜員工一直擠滿了 South Lake Union 和 Denny Regrade 的街道。

Looking at a recent study, Amazon commissioned for these two submarkets which is where most of our Seattle properties are located. Foot traffic is up 82%. Restaurant activity is up 86%, hotel demand from Amazon alone was 26,500 room nights in May 2023, a 130% increase over the prior 2 years. This activity not only brings vibrancy to the neighborhood but also enhances safety.

看看最近的一項研究，亞馬遜委託這兩個子市場進行研究，這兩個子市場是我們西雅圖大部分物業所在的地方。人流量增加了 82%。 2023 年 5 月，餐廳活動增長了 86%，僅亞馬遜的酒店需求就達到 26,500 個間夜，比前兩年增長了 130%。此次活動不僅給社區帶來了活力，也增強了安全性。

Physical occupancy at Kilroy's portfolio is up 800 basis points from the beginning of the year and over 500 basis points from just last quarter. Our parking income is also a beneficiary with NOI up approximately 20% compared to the first half of last year.

Kilroy 投資組合的實際入住率較年初增長了 800 個基點，較上季度增長了 500 多個基點。我們的停車收入也是受益者，NOI 比去年上半年增長了約 20%。

Turning to second quarter results. We signed a total of 285,000 square feet of leases similar to last quarter with cash leasing spreads up roughly 2.5%. Activity was robust in our Los Angeles portfolio, where we transacted 160,000 square feet of leases headlined by 50,000 square foot renewal and expansion with LeBron James' Media Company uninterrupted at our Columbia Square project in Hollywood.

轉向第二季度業績。我們總共簽署了 285,000 平方英尺的租賃合同，與上季度類似，現金租賃利差上漲約 2.5%。我們在洛杉磯的投資組合表現強勁，在好萊塢哥倫比亞廣場項目中，我們與勒布朗·詹姆斯的媒體公司不間斷地簽訂了 160,000 平方英尺的租賃合同，其中包括 50,000 平方英尺的更新和擴建。

We also signed a 25,000 square foot new lease with Edelman, a world-renowned public relations company at the same project. Our Hollywood portfolio is now 91% leased. Many of you have toured our mixed-use project at Columbia Square and understand the world-class quality of the project, which has led to our recent success.

我們還在同一項目上與世界知名公關公司愛德曼簽署了 25,000 平方英尺的新租約。我們的好萊塢投資組合目前 91% 已出租。你們中的許多人都參觀過我們位於哥倫比亞廣場的綜合用途項目，並了解該項目的世界一流品質，這使得我們最近取得了成功。

And in Long Beach, we continue to make progress on our recently renovated Aero project. During the second quarter, a major financial service firm committed to take 25,000 square feet of the campus bringing it to 89% leased. Aero has taken a slightly different path to ultimately achieve similar results. The 7-building campus developed by Kilroy in phases beginning in the late '80s through the early 2000s was redeveloped in 2020 after the move out of a major tenant. We spent roughly $20 per square foot, improving and updating the lobbies and outdoor amenities.

在長灘，我們最近翻新的 Aero 項目繼續取得進展。第二季度，一家大型金融服務公司承諾佔用該園區 25,000 平方英尺的面積，使其出租率達到 89%。 Aero 採取了略有不同的途徑，最終取得了類似的結果。基爾羅伊 (Kilroy) 從 80 年代末到 2000 年代初分階段開發了擁有 7 棟建築的校園，在搬出主要租戶後於 2020 年進行了重新開發。我們每平方英尺花費了大約 20 美元，用於改善和更新大堂和戶外設施。

Since we commenced the improvement project, we have leased over 450,000 square feet and have achieved rents roughly $7 higher per square foot than pre-renovation. To remind everyone, we are in the process of rolling out a similar plant at our West 8th project in Seattle, and the early market feedback is encouraging with tour activity up significantly.

自從我們開始改善項目以來，我們已經租賃了超過 450,000 平方英尺，並且每平方英尺的租金比裝修前高出大約 7 美元。提醒大家的是，我們正在西雅圖的 West 8 項目中建立類似的工廠，早期的市場反饋令人鼓舞，旅遊活動顯著增加。

In summary, both, Columbia Square and Aero, are examples of best-in-class projects that are achieving solid capture rates and attracting world-class tenants across various sectors. The Life Science business remains well positioned with healthy secular tailwinds. The population continues to age, new drugs continue to get improved with 2023 on track to exceed last year's levels. And total funding during the second quarter approached $40 billion, increasing 15% from the first quarter.

總而言之，哥倫比亞廣場和 Aero 都是一流項目的典範，它們實現了穩定的佔領率並吸引了各個行業的世界級租戶。生命科學業務仍然處於有利地位，並受到健康的長期推動。人口持續老齡化，新藥不斷改進，預計到 2023 年將超過去年的水平。第二季度融資總額接近400億美元，較第一季度增長15%。

During the second quarter, we signed a 25,000 square foot extension with Neurocrine Biosciences, a life science tenant in Del Mar. And we continue to have several prospects during the second phase of Kilroy Oyster Point in South San Francisco. As a reminder, our Kilroy Oyster Point project is not projected to stabilize until 2025 or about 2 years from today. We are pleased with our second quarter operating results and believe we are well positioned for continuing success. And as we think about the future, Kilroy is focused on the things we can control and well positioned to be opportunistic when the time comes.

第二季度，我們與 Del Mar 的生命科學租戶 Neurocrine Biosciences 簽署了 25,000 平方英尺的擴建項目。在南舊金山的 Kilroy Oyster Point 二期工程中，我們繼續有幾個潛在客戶。提醒一下，我們的 Kilroy Oyster Point 項目預計要到 2025 年（即從今天起大約 2 年後）才能穩定下來。我們對第二季度的經營業績感到滿意，並相信我們已經做好了持續成功的準備。當我們思考未來時，基爾羅伊專注於我們可以控制的事情，並在時機成熟時做好機會主義的準備。

Our primary focus for the balance of the year is leasing. The current environment will separate winners and losers through a combination of patients and strategically positioning our assets to be top-tier choices for tenants. We believe the Kilroy platform is well positioned to create alpha as we lease up the portfolio.

我們今年剩餘時間的主要重點是租賃。當前的環境將通過患者的組合來區分贏家和輸家，並將我們的資產戰略性地定位為租戶的頂級選擇。我們相信 Kilroy 平台處於有利地位，可以在我們租賃投資組合時創造阿爾法收益。

In addition, we are committed to maintaining our top-notch balance sheet and robust liquidity profile as we demonstrated with the 1 for sale loan. As a reminder, over the last year, inclusive of the 1 for sale financing, Kilroy has secured approximately $900 million of fresh capital at a blended rate in the high 5% range. Also, I would like to acknowledge that none of what we do would be possible without a best-in-class team. We have a deep and talented group of professionals that has been critical to our success.

此外，我們致力於維持一流的資產負債表和強勁的流動性狀況，正如我們在 1 筆待售貸款中所展示的那樣。提醒一下，去年，包括第一筆出售融資在內，Kilroy 已以 5% 左右的混合利率獲得了約 9 億美元的新資本。另外，我想承認，如果沒有一流的團隊，我們所做的一切都是不可能的。我們擁有一支深厚且才華橫溢的專業團隊，他們對我們的成功至關重要。

We're going to continue to invest in our human capital while also striving for ways to get better, always trying to get better. I want to personally thank all of my teammates at Kilroy for their hard work and dedication.

我們將繼續投資於人力資本，同時努力尋找變得更好的方法，始終努力變得更好。我想親自感謝基爾羅伊的所有隊友的辛勤工作和奉獻精神。

To wrap up my remarks, we are encouraged by the green shoots we are seeing. There continues to be more activity across leasing, investments and finance for the best-in-class product that Kilroy is known for, whether it's new tenants entering the market, existing tenants looking to renew and expand our strategic transactions being made, the common theme is preferential demand for well-located high-quality assets.

最後，我們對所看到的萌芽感到鼓舞。 Kilroy 以其一流的產品而聞名，在租賃、投資和金融方面的活動繼續增多，無論是新租戶進入市場，還是現有租戶希望更新和擴大我們正在進行的戰略交易，這是共同的主題是對地段優質資產的優先需求。

Fundamentally, we expect this trend to continue, and the Kilroy platform could not be better positioned. At some point, there will be a time to play offense. And when that time comes, Kilroy will adhere to its core principles. We will allocate capital into acquiring, developing and redeveloping premier assets in the right markets that will outperform well into the future while always maintaining a strong balance sheet. That completes my remarks.

從根本上講，我們預計這一趨勢將持續下去，而 Kilroy 平台的定位再好不過了。到了某個時候，就會有進攻的時候。到那時，基爾羅伊將堅持其核心原則。我們將分配資金，用於在合適的市場收購、開發和再開發優質資產，這些資產在未來將表現出色，同時始終保持強勁的資產負債表。我的發言到此結束。

Now I'll turn the call over to Justin.

現在我將把電話轉給賈斯汀。

Thank you, John. As of the end of the second quarter, our in-process development totaled approximately $1.8 billion with about $590 million left to fund. The majority of which is for the second phase of our Kilroy Oyster Point Life Science Development in South San Francisco.

謝謝你，約翰。截至第二季度末，我們的正在進行的開發總額約為 18 億美元，剩餘資金約為 5.9 億美元。其中大部分用於南舊金山 Kilroy Oyster Point 生命科學開發項目的第二階段。

In April, the core and shell of our fully leased development project at 9514 Towne Centre Drive in the UTC submarket of San Diego. The building is in the tenant improvement phase, and we commenced revenue recognition in July, a few months earlier than anticipated. As we have discussed on prior calls, Indeed Tower is also expected to enter the operating portfolio in the fourth quarter of 2023.

4 月份，我們位於聖地亞哥 UTC 子市場 Towne Center Drive 9514 號的開發項目的核心和外殼全部出租。該建築正處於租戶改善階段，我們於 7 月份開始確認收入，比預期早了幾個月。正如我們在之前的電話會議中討論的那樣，Indeed Tower 預計也將在 2023 年第四季度進入運營投資組合。

So as we enter 2024, our in-process development pipeline is expected to be approximately $1 billion, the smallest it has been since 2016. All three current pipeline projects are Life Science. Supply remains something of a bright spot for the market nationally. There have been roughly 5 million square feet of new office starts year-to-date, which represents a roughly 75% decline from the 2-year trailing average.

因此，當我們進入 2024 年時，我們的正在進行的開發管道預計約為 10 億美元，這是自 2016 年以來的最小水平。當前的所有三個管道項目都是生命科學。供應仍然是全國市場的一個亮點。今年迄今為止，新辦公樓開工面積約為 500 萬平方英尺，較過去兩年的平均水平下降了約 75%。

In addition, roughly 15 million square feet of office has been converted or demolished year-to-date. The net of these two has reduced the national office stock by 10 million square feet. Said another way, as demand for high-quality space surges, there is currently little new product in the pipeline to be delivered over the near term, creating a future shortage of high-quality product that tenants want.

此外，今年迄今已有約 1500 萬平方英尺的辦公室被改建或拆除。兩者相加，全國寫字樓存量減少了 1000 萬平方英尺。換句話說，隨著對高品質空間的需求激增，目前短期內交付的新產品很少，導致未來租戶想要的高品質產品短缺。

As many of you know, our strategy has been focused on the high end of the market. As John referenced, it is increasingly clear that there is a significant bifurcation between high- and low-quality office buildings. And we expect more of the low-quality and obsolete properties to be converted or repurposed where possible.

眾所周知，我們的戰略一直專注於高端市場。正如約翰提到的，越來越明顯的是，高質量和低質量的辦公樓之間存在著顯著的分歧。我們預計更多的低質量和過時的房產將在可能的情況下被轉換或重新利用。

To that end, according to JLL, 17% of total U.S. vacancy is derived from approximately 1% of office buildings, highlighting the outsized challenges for owners of commodity product. Out performance of high-end product is not unique to the office sector. Luxury hotels have generated better RevPAR growth than the overall market since 2020, and Class A apartments have had better absorption than the overall market every year for the past decade.

為此，根據仲量聯行的數據，美國總空置率的 17% 來自約 1% 的辦公樓，這突顯了大宗商品所有者面臨的巨大挑戰。高端產品的表現並不是辦公領域獨有的。自2020年以來，豪華酒店的RevPAR增長均高於整體市場，而甲級公寓在過去十年中每年的吸納率均高於整體市場。

Focusing on premier product has been a pillar of our strategy for many years, and it has proven to be -- to generate better results over the long term. That said, we are excited about our future land bank comprised of eight development projects totaling 8 million square feet across our five markets.

多年來，專注於優質產品一直是我們戰略的支柱，事實證明，從長遠來看，能夠產生更好的成果。也就是說，我們對未來的土地儲備感到興奮，該土地儲備由五個市場中總計 800 萬平方英尺的八個開發項目組成。

From a product-type perspective, these products will be approximately 30% Life Science, 20% Residential and 50% Office. We continue to advance design and entitlements on these future projects, so that we are prepared to be first movers when market conditions warrant.

從產品類型來看，這些產品大約為30%生命科學、20%住宅和50%辦公。我們將繼續推進這些未來項目的設計和權利，以便在市場條件允許時成為先行者。

With that, I will turn the call over to Elliot.

這樣，我會將電話轉給埃利奧特。

Thank you, Justin. FFO was $1.19 per share in the second quarter, a $0.03 decline from the first quarter, mainly due to Amazon's move out in Seattle. This was partially offset by higher interest income. The 2Q results also include roughly $0.03 of positive nonrecurring items tied to 10 termination fees and restoration payments. On a same-store basis, second quarter cash NOI was up roughly 3%, driven by free rent burn off at the first phase of Kilroy Oyster Point in South San Francisco. GAAP same-store NOI was down roughly 2%.

謝謝你，賈斯汀。第二季度FFO為每股1.19美元，較第一季度下降0.03美元，主要是由於亞馬遜遷出西雅圖。這被較高的利息收入部分抵消。第二季度業績還包括與 10 項終止費和恢復付款相關的約 0.03 美元的正非經常性項目。按同店計算，第二季度現金 NOI 增長約 3%，得益於南舊金山 Kilroy Oyster Point 一期的免費租金消耗。 GAAP 同店 NOI 下降約 2%。

At the end of the quarter, our stabilized portfolio was approximately 87% occupied and 89% leased. The decrease from the prior quarter was due to previously disclosed move-outs. Net debt to second quarter annualized EBITDA was about 6x. Our liquidity remains robust. And after accounting for the proceeds for the One Paseo financing, we have roughly $1.9 billion in total capacity, comprised of $1.1 billion on our line of credit and $830 million of cash and marketable securities, which includes $170 million available under our term loan facility.

截至本季度末，我們穩定的投資組合約有 87% 已被佔用，89% 已出租。較上一季度減少的原因是之前披露的遷出。淨債務與第二季度年化 EBITDA 之比約為 6 倍。我們的流動性依然強勁。考慮到One Paseo 融資的收益後，我們的總產能約為19 億美元，其中包括11 億美元的信貸額度和8.3 億美元的現金和有價證券，其中包括我們的定期貸款安排下的1.7 億美元。

In total, our available cash is sufficient to cover the majority of our near-term development spend and address our next bond maturity in December 2024. In addition, our dividend is incredibly well covered with a payout ratio of approximately 50% of [FAD] through the first half of the year.

總的來說，我們的可用現金足以支付我們大部分的近期開發支出，並解決我們2024 年12 月下一次債券到期的問題。此外，我們的股息支付率令人難以置信，支付率約為[FAD] 的50%整個上半年。

Furthermore, by putting in place an 11-year mortgage, we maintain a well-laddered maturity schedule with an average duration of 6 years. Now that proceeds to the December 2024 bond maturity have been identified, our next maturity is not until October of 2025. We are focused on keeping liquidity high and leverage low and are thrilled we could boost our liquidity on efficient terms via the One Paseo loan.

此外，通過實施 11 年期抵押貸款，我們維持了良好的到期時間表，平均期限為 6 年。既然2024 年12 月債券到期的收益已經確定，我們的下一個到期日期要到2025 年10 月。我們專注於保持高流動性和低杠桿率，並且很高興能夠通過One Paseo 貸款以有效的條件提高我們的流動性。

Now let's discuss our 2023 guidance. As always, no acquisitions are forecasted, and we continue to expect dispositions to be between 0 and $200 million. We anticipate drawing down the remaining $170 million from our term loan during the third quarter. The loan for One Paseo closed in late July, and we expect to keep most of the cash available on the balance sheet.

現在讓我們討論一下我們的 2023 年指導。與往常一樣，預計不會進行收購，並且我們繼續預計處置金額將在 0 至 2 億美元之間。我們預計在第三季度從定期貸款中提取剩餘的 1.7 億美元。 One Paseo 的貸款已於 7 月底結束，我們預計將大部分可用現金保留在資產負債表上。

From an FFO perspective, the interest income we generate from the cash will mitigate much of the incremental interest expense. As Justin mentioned, 9514 Towne Centre Drive stabilized in the third quarter of this year, one quarter earlier than anticipated. And 4690 Executive Drive is expected to stabilize in the fourth quarter of next year, one quarter later than previously estimated. Indeed Tower is still projected to enter the stabilized pool in the fourth quarter of this year.

從 FFO 的角度來看，我們從現金中產生的利息收入將減少大部分增量利息支出。正如 Justin 提到的，9514 Towne Center Drive 在今年第三季度趨於穩定，比預期提前了四分之一。而4690 Executive Drive預計將在明年第四季度穩定下來，比之前預計的晚了一個季度。 Indeed Tower 預計仍將在今年第四季度進入穩定池。

Development spend for the remainder of the year is expected to be $250 million to $300 million. When factoring in the roughly $175 million of spend in the first half of the year, the full year estimate is now $425 million to $475 million, with a midpoint unchanged from last quarter. Capitalized interest for the next two quarters is expected to remain around the second quarter run rate. No change to our G&A estimate. We are tightening the range for full year average occupancy to 86.75% to 87.75%, with no change to the 87.25% midpoint. Cash same-store NOI is now projected to be 1.5% to 2.5%, a 100-basis point increase at the midpoint due to better-than-anticipated parking revenue and some nonrecurring income.

今年剩餘時間的開發支出預計為 2.5 億至 3 億美元。考慮到上半年約 1.75 億美元的支出，全年預估目前為 4.25 億至 4.75 億美元，中值與上季度持平。預計未來兩個季度的資本化利息將保持在第二季度運行率左右。我們的一般行政費用估算沒有變化。我們將全年平均入住率範圍收緊至 86.75% 至 87.75%，87.25% 的中點不變。由於好於預期的停車收入和一些非經常性收入，現金同店 NOI 目前預計為 1.5% 至 2.5%，中間值增加 100 個基點。

In summary, our prior 2023 FFO guidance was $4.30 to $4.50, with a midpoint of $4.40 per share. Based on our performance to date, we are adjusting and tightening the range to between $4.43 and $4.53. The new midpoint of $4.48 represents a roughly 2% increase from the prior guidance.

總之，我們之前的 2023 年 FFO 指導值為 4.30 至 4.50 美元，中點為每股 4.40 美元。根據我們迄今為止的表現，我們正在調整併將範圍收窄至 4.43 美元至 4.53 美元之間。新的中點為 4.48 美元，較之前的指導值上漲約 2%。

The biggest drivers behind the increase are higher interest income, better parking revenue and earlier revenue recognition for our 9514 Towne Centre Drive development. These are partially offset by additional interest expense from the One Paseo financing.

增長背後的最大推動因素是更高的利息收入、更好的停車收入以及我們 9514 Towne Center Drive 開發項目的更早收入確認。這些費用被 One Paseo 融資的額外利息支出部分抵消。

To provide further clarity, our updated midpoint implies average quarterly FFO of roughly $1.04 per share for the back half of the year, which is $0.15 lower than the second quarter. To bridge the gap on the $0.15, we subtract $0.03 for the nonrecurring items I mentioned earlier. Next, we back out a net $0.05 due to lower occupancy, which factors in our move-outs and move-ins. Finally, we subtract $0.07 for various other items, most notably the dispositions and additional interest expense.

為了進一步明確起見，我們更新的中點意味著今年下半年的平均季度 FFO 約為每股 1.04 美元，比第二季度低 0.15 美元。為了彌補 0.15 美元的差距，我們為我之前提到的非經常性項目減去 0.03 美元。接下來，由於入住率下降（考慮到我們的遷出和遷入），我們將淨扣除 0.05 美元。最後，我們為其他各種項目減去 0.07 美元，最值得注意的是處置和額外利息費用。

That completes my remarks. Now we will be happy to take your questions. Elliot?

我的發言到此結束。現在我們很樂意回答您的問題。艾略特？

(Operator Instructions) Our first question comes from Nick Yulico with Scotiabank.

（操作員說明）我們的第一個問題來自豐業銀行的 Nick Yulico。

Just in terms of the second half of the year, I want to make sure we had some of the moving parts, right, in terms of occupancy impact. So I think you previously said Pac-12 was a move out in July. I think that was about 114,000 square feet. And then I wasn't sure if you have an update on Riot Games, where I guess there was a partial expiration in July and some additional expiration in November. Any update there?

就今年下半年而言，我想確保我們在入住率影響方面有一些變化。所以我想你之前說過 Pac-12 是在 7 月份搬遷的。我認為大約是 114,000 平方英尺。然後我不確定你們是否有關於 Riot Games 的更新，我猜它在 7 月份有部分到期，在 11 月份有一些額外的到期。有更新嗎？

Yes. Nick, this is Rob. I hope you're doing well. It's hard to get very specific with Riot Games. We're having a variety of discussions on different floors that they lease from us, both in '23 and '24. And I just can't predict ultimately how much space they'll take, but we are in contact with them and continue to have negotiations ongoing.

是的。尼克，這是羅布。我希望你一切都好。很難對 Riot Games 做出非常具體的描述。我們在 23 年和 24 年從我們這裡租用的不同樓層進行了各種討論。我只是無法預測他們最終會佔用多少空間，但我們正在與他們聯繫並繼續進行談判。

Okay. And then I guess in terms of South San Francisco, maybe you could talk a little bit more, Rob, about the demand you're seeing in that market. I know you turned one of the buildings into multi-tenant for KOP Phase 2. Maybe you could talk about leasing demand there for smaller users versus larger tenants where it sounds like the larger tenant demand is a little bit slower. Maybe you're more active on the other tenant base.

好的。然後我想就南舊金山而言，羅布，也許你可以多談談你在該市場看到的需求。我知道您將其中一棟建築轉變為 KOP 第二階段的多租戶。也許您可以談談較小用戶與較大租戶的租賃需求，聽起來較大租戶的需求有點慢。也許您在其他租戶群中更活躍。

Sure. There's not a lot of change between Q1 and Q2 in terms of just the number of tenants in the market and kind of the basic market fundamentals. There's about 2.5 million square feet of demand in the market. A portion of that is on hold but is supposed to be coming back towards the later part of this year.

當然。僅就市場租戶數量和市場基本面而言，第一季度和第二季度之間沒有太大變化。市場需求量約為250萬平方英尺。其中一部分已被擱置，但預計會在今年下半年恢復。

I think notably, a handful of younger companies are getting funding rounds, which we hadn't seen in Q1. So companies like Backsight, Hexagon Bio and Septerna have gotten funding rounds completed recently. Since we did announce the multi-tenanting of our -- one of our three buildings, our tour activity has picked up an interest, meaning people are wanting to see the space, wanting to understand what's in it.

我認為值得注意的是，一些年輕的公司正在獲得融資，這是我們在第一季度沒有看到的。 Backsight、Hexagon Bio 和 Septerna 等公司最近完成了幾輪融資。自從我們宣布我們的三座建築之一的多租戶以來，我們的旅遊活動引起了人們的興趣，這意味著人們想要參觀這個空間，想要了解裡面有什麼。

We're exchanging plans with a couple of companies right now in terms of the technical capabilities of the space. So overall, as I said in the first quarter, we're pleased given the overall environment with the activity we have. And we still -- as John said in his comments, we had 2 years until we're actually complete.

我們現在正在與幾家公司就該領域的技術能力交換計劃。因此，總的來說，正如我在第一季度所說，考慮到我們活動的整體環境，我們感到很高興。正如約翰在評論中所說，我們仍然有 2 年的時間才能真正完成。

Our next question comes from Stephen Sakwa with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Stephen Sakwa。

Yes. I don't know, Eliott or Rob, if you could maybe just talk about maybe the next 18 months and some of the, I guess, more pronounced maybe known move-outs, just kind of remind us, what you know is to be vacating over the next, say, through the end of '24?

是的。我不知道，艾略特或羅布，你們是否可以談論一下接下來的 18 個月，以及一些我想更明顯的可能已知的遷出，只是提醒我們，你們所知道的是明年（比如24 年底）要離開嗎？

Steve, it's Eliott. I'll start. We've talked about the expirations over 100,000 feet for the balance of this year. There are two. There's Pac-12, which as everyone knows, is moving out. And there's Riot, which Rob just addressed. Next year, we also have two. One in the Bay Area, one in Seattle, and those are both TBD and how they play out. And in 2025, we do not have any expirations over 100,000.

史蒂夫，我是艾略特。我開始吧。我們已經討論了今年餘下時間超過 100,000 英尺的到期時間。那裡有兩個。眾所周知，太平洋十二校聯盟 (Pac-12) 即將遷出。還有 Riot，Rob 剛剛談到了這個問題。明年，我們也有兩個。一個在灣區，一個在西雅圖，這些都待定，以及它們將如何發揮作用。到 2025 年，我們沒有任何超過 100,000 的過期時間。

Okay. And just to circle back on the G&A. And I know you guys did better than we had expected in the quarter. Just kind of remind us, what you're expecting overall for G&A in dollar terms and I guess, including the expenses for John's retirement, just -- and will that be equally weighted between Q3 and Q4? Or is that tilted to Q4?

好的。回到一般管理費用。我知道你們本季度的表現比我們預期的要好。請提醒我們，您對以美元計算的一般行政費用的總體預期是多少，我猜，包括約翰退休的費用，以及第三季度和第四季度之間的權重相同嗎？或者說是向第四季度傾斜？

Yes. So the overall number inclusive of the retirement charges will have a range from 90 on the low end to 104 on the high end, which is consistent with what we talked about last quarter. In terms of the -- how it plays out through the balance of the year, there's going to be a portion that continues to be amortized.

是的。因此，包括退休金在內的總數將在從低端 90 到高端 104 的範圍內，這與我們上季度談到的一致。就今年剩餘時間的表現而言，將有一部分繼續攤銷。

So we amortized the portion in actually a little bit of 1Q, but it jumped up meaningfully in 2Q. So we've taken, call it, about three of the $0.10 tied to the retirement charges so far. That will be similar in 3Q. And then in 4Q, it will be a little bit higher depending on performance.

因此，我們實際上在第一季度攤銷了該部分，但在第二季度它大幅上漲。因此，到目前為止，我們已經收取了與退休費用相關的 0.10 美元中的大約三分之二。第三季度的情況也將類似。然後在第四季度，根據性能，它會更高一些。

We now turn to Blaine Heck with Wells Fargo.

現在我們請富國銀行的布萊恩·赫克來談談。

Just to clarify on the occupancy guidance. I'm assuming current guidance assumes Riot stays in place, but I wanted to clarify that. And then also, what does guidance assume with respect to Indeed Tower when it comes into the operating portfolio later this year? Is that held at the current lease rate? Or is there additional leasing factored in there?

只是為了澄清入住指南。我假設當前的指導假設 Riot 保持不變，但我想澄清這一點。另外，當 Indeed Tower 今年晚些時候進入運營投資組合時，指南對 Indeed Tower 有何假設？是按目前的租賃費率計算嗎？或者其中是否考慮了額外的租賃？

Yes. So Blaine, we don't typically talk about assumptions for particular tenants. And so I think on Riot, there's not much more we can say beyond what Rob mentioned. For Indeed, you're correct, it is going to come in, in the fourth quarter. And we anticipate that it comes in at the current levels. So that will weigh on the occupancy in the fourth quarter, and that obviously also impacts the average number as well.

是的。所以 Blaine，我們通常不會談論針對特定租戶的假設。所以我認為，對於 Riot，除了 Rob 提到的內容之外，我們沒什麼可說的了。事實上，你是對的，它將在第四季度推出。我們預計它會達到目前的水平。因此，這將影響第四季度的入住率，顯然也會影響平均數量。

Okay. And then a second question, maybe a high-level question for John. There was a lot of optimism earlier this year after the midterm elections, which were, I think, generally seen as a step in the right direction for San Francisco. Can you just talk about any improvement you've seen or signs of improvement to come with respect to crime, homelessness and just overall creating a bit of a more hospitable business environment?

好的。然後是第二個問題，對於約翰來說可能是一個高級問題。今年早些時候，中期選舉之後出現了很多樂觀情緒，我認為，這通常被視為舊金山朝著正確方向邁出的一步。您能否談談您在犯罪、無家可歸以及總體上創造一個更加友善的商業環境方面看到的任何改進或即將出現的改進跡象？

Well, you know me, I always have to give a little story. So if you've ever been involved in an intervention of somebody who's an alcoholic or a drug addict, you're not going to get any place unless they are hit bottom and they want to change. And that's the way I would characterize San Francisco. San Franciscans across most of the political spectrum, the economic spectrum, the demographics spectrum are fed up, and they've taken action. I think there's a real chance to replace and get a majority on the Board of Supervisors next year in the elections. The numbers look really good on that.

嗯，你了解我，我總是要講一個小故事。因此，如果您曾經參與過對酗酒者或吸毒者的干預，那麼除非他們跌入谷底並且想要改變，否則您不會獲得任何幫助。這就是我對舊金山的描述。舊金山的大部分政治派別、經濟派別、人口派別都已經厭倦了，他們已經採取了行動。我認為明年的選舉中真正有機會更換監事會並獲得多數席位。這些數字看起來確實不錯。

I think there is a real opportunity to get rid of some of the bad judges that are up there. And there's some other things in the political wins that I won't talk about. And that's all made possible by the fact that over the past couple of years, a broad coalition of people have gotten together, they represent people like myself that are CEOs of companies, not just in real estate but across the spectrum of different types of companies. They represent school features. They represent the broad spectrum of the demographic base. And the wins are definitely changing.

我認為這是一個真正的機會來擺脫那些糟糕的法官。政治勝利中還有其他一些事情我不會談論。這一切之所以成為可能，是因為在過去的幾年裡，一個廣泛的人們聯盟聚集在一起，他們代表像我這樣的公司首席執行官，不僅在房地產領域，而且在不同類型的公司中。它們代表了學校的特色。他們代表了廣泛的人口基礎。勝利肯定正在發生變化。

What has also happened is at the state level, we have the state law enforcement in San Francisco that can take action that the locals can't. We have the Feds in there, taking action that the locals can't. And that all sounds sort of ominous. But the fact is there are forces at work that I think are going to clean things up. It isn't going to be easy. It isn't going to happen overnight.

在州一級也發生了一些事情，舊金山的州執法部門可以採取當地人無法採取的行動。我們有美聯儲在那裡，採取當地人無法採取的行動。這一切聽起來有點不祥。但事實是，我認為有一些力量正在發揮作用，這些力量將會清理事情。這並不容易。這不會在一夜之間發生。

But I was at a meeting as an example, I think it was last week. It was a big group. It was a cross-section of business leaders from everything from restaurant associations and in the hotels to folks again like myself, et cetera.

但以我參加的一個會議為例，我想那是上週。那是一個大團體。這是一個跨部門的商業領袖，從餐館協會和酒店到像我這樣的人等等。

And universally, people are committed to funding and actively participating and changing what became a mess. So I'm more optimistic to tell you the truth than I've been in the last 2 or 3 years by far, but there's work to be done. It's kind of like a war. You can see that you're going to win it. it could take longer than you think. It's going to be bloody. And I don't mean that bloody in the sense of San Francisco, but I do think it's getting better. And you can see it on the streets. As people come back to work, the streets are far more vibrant. There's people in the lobbies of buildings, the restaurants are full.

普遍來說，人們都致力於資助並積極參與並改變混亂的局面。因此，說實話，我比過去兩三年更加樂觀地告訴大家，但還有很多工作要做。這有點像一場戰爭。你可以看到你會贏。這可能需要比你想像的更長的時間。這將會是血腥的。我並不是指舊金山意義上的血腥，但我確實認為情況正在變得更好。而且你可以在街上看到它。隨著人們重返工作崗位，街道變得更加充滿活力。大樓的大廳裡擠滿了人，餐館裡也擠滿了人。

Certainly, some restaurants have gone out of business and whatnot that were dependent solely on the office community and whatnot as people were working from home. But there's generally an era of people see that there is a future that's far brighter. So that's -- sorry for the long-winded answer. But I would just punctuate again that I'm more optimistic now than I've been in the last 3 years, because I see things really working in a positive way.

當然，由於人們在家工作，一些完全依賴辦公社區等的餐館已經倒閉了。但總體來說，在某個時代，人們會看到一個更加光明的未來。所以，對於冗長的回答，我們深表歉意。但我想再次強調，我現在比過去三年更加樂觀，因為我看到事情確實在以積極的方式運作。

Our next question comes from Michael Griffin with Citi.

我們的下一個問題來自花旗銀行的邁克爾·格里芬。

I wanted to touch on retention for a bit. I know it was lower, similar to the last quarter. As we look to the back half of the year, is the expectation for this retention rate to stay low or -- John, you were talking about some of those green shoots we could potentially see an uptick in these retention levels?

我想談談保留率。我知道這個數字較低，與上個季度類似。當我們展望今年下半年時，這種保留率的預期是否會保持在較低水平，或者——約翰，你剛才談到了我們可能會看到這些保留水平上升的一些萌芽？

Yes. It's -- Mike, some of these bigger tenants just don't know. They're all trying to figure out what they're doing. I'm unwilling to predict retention levels. You're a young guy, and I don't think you have kids. And as you know, I've got six, most of them are grown, but the game shoots and ladders. We're going to continue to see shoots, but we're now seeing longer and more ladders.

是的。這是——邁克，一些大租戶只是不知道。他們都在努力弄清楚自己在做什麼。我不願意預測保留水平。你還年輕，我認為你還沒有孩子。如你所知，我有六個，其中大多數都是成年的，但遊戲是射擊和梯子。我們將繼續看到新芽，但我們現在看到更長、更多的梯子。

And so in that context, I think things get better over time, but they're not going to get better instantly. There's nothing in my mind that says that we're back to 2019, certainly not in San Francisco.

因此，在這種情況下，我認為隨著時間的推移，事情會變得更好，但它們不會立即變得更好。我的腦海中沒有任何跡象表明我們回到了 2019 年，當然不是在舊金山。

So we'll see. It's interesting that some of the people that have moved out of buildings -- our buildings, are talking to us about potentially moving back into buildings. And I'm not speaking specifically to San Francisco but across the platform. So there's just a lot of kind of wait and see. We're very busy dealing with people and the optionality they're trying to structure.

所以我們拭目以待。有趣的是，一些已經搬出建築物（我們的建築物）的人正在與我們談論可能搬回建築物的可能性。我並不是專門針對舊金山，而是針對整個平台。所以還有很多等待和觀望的機會。我們非常忙於與人和他們試圖構建的選擇性打交道。

And as I've made a comment to in my remarks, in the case of like Columbia Square and Hollywood, we hadn't seen any leasing there for 2 years. Now all of a sudden, it's on fire. What changed? And it's right during the middle of this big industry -- entertainment industry strike.

正如我在發言中所評論的那樣，就哥倫比亞廣場和好萊塢而言，我們已經有兩年沒有看到那裡有任何租賃了。現在突然就火了。發生了什麼變化？正是在這個大產業——娛樂業罷工的中間。

If you talk to people, it's just that they're seeing -- they're being more optimistic. They're getting people back to work. They have plans to expand. So those things can change pretty quickly. I'll make another comment just about -- I think I've said this before at various things, including your event in March. I remember a couple of times in different downturns, people talking about Silicon Valley as a case in point, having 20-some years of supply. And within 2 years, there was nothing to be -- there was nothing of substance available. I'm not predicting that will happen in the next year or 2, but I think it will happen over time, because people are starting to get back to work, and innovation is alive and well.

如果你和人們交談，你會發現他們變得更加樂觀了。他們正在讓人們重返工作崗位。他們有擴張計劃。所以這些事情可能會很快改變。我將發表另一條評論——我想我之前在各種事情上說過這一點，包括你們三月份的活動。我記得有幾次在不同的經濟低迷時期，人們談論矽谷作為一個典型的例子，它有 20 多年的供應量。兩年之內，什麼也沒有發生——沒有任何實質性的東西可用。我並不預測這種情況會在未來一兩年內發生，但我認為隨著時間的推移，這種情況會發生，因為人們開始重返工作崗位，而創新也充滿活力。

There are a lot of new companies being formed. I just -- if I could predict it, I wouldn't be in this business. I'd be in the venture capital business.

有很多新公司正在成立。我只是——如果我能預測到這一點，我就不會從事這個行業了。我會從事風險投資業務。

Great. Maybe expanding on that green shoot opportunity you talked about. I think we've heard more about AI driving space requirements, particularly in San Francisco. I mean, how big can you quantify this as terms of a long-term driver in the market? And any color you have around that would be helpful.

偉大的。也許可以擴展你談到的那個新芽機會。我認為我們已經聽說了更多有關人工智能駕駛空間要求的信息，尤其是在舊金山。我的意思是，您可以將其量化為市場的長期驅動力有多大？周圍有任何顏色都會有幫助。

Sorry, Mike, you cut out in the first part of that. So can you just start with your -- the early part of your question?

抱歉，邁克，你把第一部分刪掉了。那麼你能從問題的前半部分開始嗎？

Yes, just -- AI demand in San Francisco and kind of the opportunity set that you see there? I know the market has been kind of soft, but that seems like a potential green shoot for space requirements there.

是的，只是——舊金山的人工智能需求以及您在那裡看到的機會集是什麼？我知道市場有點疲軟，但這似乎是那裡空間需求的潛在萌芽。

Yes. There is a tenant in one of our buildings that sublease 50,000 feet to an AI company. Here, there's a lot -- I know some things I can't talk about with regards to folks that are going to be investing quite heavily in AI that haven't really announced yet, and they're big, big players. I have no idea how big it's going to be. If you talk to some of the folks that are in it and with well-established companies, they think it's going to be enormous. And it's one of those things that when Uber came out, people thought, well, what it's still the idea, it's not going to happen, and they needed (inaudible) and everything else. The same thing with Airbnb came out, everybody thought, what a stupid idea. We now know that they're the biggest hotel company in the world.

是的。我們的一棟大樓裡有一個租戶將 50,000 英尺的空間轉租給一家人工智能公司。在這裡，有很多事情——我知道一些關於那些將在人工智能領域進行大量投資但尚未真正宣布的人們無法談論的事情，而且他們是非常非常大的參與者。我不知道它會有多大。如果你與其中的一些人以及成熟的公司交談，他們認為這將是巨大的。其中之一是，當 Uber 出現時，人們想，好吧，這仍然是一個想法，它不會發生，他們需要（聽不清）和其他一切。每個人都認為 Airbnb 也出現了同樣的情況，這是多麼愚蠢的想法。我們現在知道他們是世界上最大的酒店公司。

So I don't know. With AI, the world is its market. I mean it literally could be involved in everything. And with that will come both, good and bad things. And I don't want to get into that, but it could be really big. I think a lot of people hope it's going to be giant and instantaneous or immediate, I don't know how. Normally, these things grow, and then they start getting bigger and bigger. If you look at the pattern of most of these tech companies, they started with 5,000 feet, and they had an idea. They leased 10,000 feet for 10 years and then all of a sudden, they need 30,000 feet, then they needed 100,000, then they needed 400,000 and so forth. It doesn't take many of those to change the market, but I don't know.

所以我不知道。有了人工智能，世界就是它的市場。我的意思是它確實可以涉及一切。隨之而來的是好事和壞事。我不想談這個，但它可能真的很大。我想很多人都希望它會是巨大的、瞬時的或立即的，我不知道如何實現。通常，這些東西會生長，然後開始變得越來越大。如果你看看大多數這些科技公司的模式，你會發現他們從 5,000 英尺開始，並且有一個想法。他們租了 10,000 英尺 10 年，然後突然之間，他們需要 30,000 英尺，然後他們需要 100,000 英尺，然後他們需要 400,000 英尺，等等。改變市場並不需要很多，但我不知道。

We now turn to Caitlin Burrows with Goldman Sachs.

現在我們請來高盛的凱特琳·伯羅斯 (Caitlin Burrows)。

Maybe a follow-up question on the One Paseo deal. Given that only 5% of your debt or so was secured as of 2Q. Can you just go through what drove the strategy for this property? And under what situations going forward you expect to use additional secured versus unsecured strategies?

也許是關於 One Paseo 交易的後續問題。鑑於截至第二季度只有 5% 左右的債務得到了擔保。您能簡單介紹一下推動該房產策略的因素嗎？在未來什麼情況下，您希望使用額外的安全策略與不安全策略？

Yes. I'll start, and then Eliott, may want to give some comments. Caitlin, we're sort of agnostic. As you know, we haven't been big users of secured debt. What drove this is if we take a look at bond debt, it was considerably more expensive. Obviously, our goal was simply to take -- to pre-fund any of the commitments that we have, whether it's development or loans that come due and take that off the table. We had 18 months, I think, before the bond deal in next year comes up. Now goes out to 25, so it's 30 months or so for the next tranche. We had some development. We were already prefunded.

是的。我先開始，然後艾略特可能想發表一些評論。凱特琳，我們有點不可知論。如您所知，我們並不是擔保債務的大用戶。推動這一趨勢的原因是，如果我們看一下債券債務，就會發現它的成本要高得多。顯然，我們的目標只是為我們所做出的任何承諾（無論是開發還是到期貸款）預先提供資金，並將其從桌面上剔除。我想，在明年的債券交易達成之前，我們還有 18 個月的時間。現在已經到了 25 個，所以下一個批次還有 30 個月左右的時間。我們有了一些發展。我們已經預付了資金。

We think there's going to be an opportunity to play offense here. We're not exactly sure when and how that's going to play out. But our view is we're just sort of prepositioning for success. We've got best-in-class product. We are at a terrific financial position that where we can take care of whatever our obligations are as they come up and be very methodical about that. We're at a terrific financial position to play offense.

我們認為這裡會有進攻的機會。我們不確定這將在何時以及如何進行。但我們的觀點是，我們只是為成功做準備。我們擁有一流的產品。我們的財務狀況非常好，我們可以在出現任何義務時處理好它們，並且非常有條理。我們的財務狀況非常好，可以進攻。

And then we have the ability to start new product as it's needed. And as Justin pointed out, we think there's going to be a real shortage. So that's what drove that transaction. It was just the most efficient way to go. Eliott, I don't know whether you have a further comment.

然後我們就有能力根據需要啟動新產品。正如賈斯汀指出的，我們認為將會出現真正的短缺。這就是推動該交易的原因。這只是最有效的方法。艾略特，不知道你是否還有進一步的評論。

No, I think that's all spot on. In terms of do we do more of these? I mean, who knows? We certainly like the efficiency of the bond market. But there's a time and place where secured debt makes sense, and we thought this was it. But this is not an indication of a bigger shift in strategy.

不，我認為這一切都是正確的。我們是否會做更多這樣的事情？我的意思是，誰知道呢？我們當然喜歡債券市場的效率。但在某個時間和地點，擔保債務是有意義的，我們認為就是這樣。但這並不表明戰略發生了更大的轉變。

Got it. Okay. And then maybe just on return to work and office utilization. You gave some details on year-to-date improvement up 800 basis points and up 500 basis points from last quarter. I guess, could you go through how you measure that? And do you have any visibility to what could happen over the next, say, 3 to 6 months?

知道了。好的。然後也許只是返回工作和辦公室使用。您提供了一些有關今年迄今改善情況的詳細信息，較上季度提高了 800 個基點和 500 個基點。我想，你能說說你是如何衡量的嗎？您是否知道未來（例如 3 到 6 個月）會發生什麼？

You want to deal with that, Eliott?

你想解決這個問題嗎，艾略特？

Yes, sure. So Caitlin, we have a process where we go through each of our markets and do a combination of survey data with our tenants and card reading data with our tenants, we sort of triangulate all of it to put it together and track this information monthly.

是的，當然。凱特琳，我們有一個流程，我們會遍歷每個市場，並將與租戶的調查數據和與租戶的讀卡數據結合起來，我們對所有這些數據進行三角測量，將其放在一起並每月跟踪這些信息。

So that's our process. It's generally tracked the castle data up until recently where the castle data had sort of flat lined, but we continue to see increases in our portfolio. So a little tough to predict exactly how it will pan out, but we think that all of the announcements that we've referenced earlier, in particular, in the Bay Area and Seattle are good leading indicators that we should still continue to make progress on the physical occupancy.

這就是我們的流程。直到最近，它通常都會跟踪城堡數據，其中城堡數據有點持平，但我們繼續看到我們的投資組合有所增加。因此，準確預測結果如何有點困難，但我們認為我們之前提到的所有公告，特別是在灣區和西雅圖的公告都是良好的領先指標，我們仍應繼續在這方面取得進展物理佔用。

I'd just add a little comment that's just interesting. As you can well imagine, we deal with a number of architectural firms that not only deal with us, they deal with other developers, deal with particularly a lot of users. So one of the things that they're saying is that they're not real busy on new buildings, but they're very busy on reconfiguring space for tenants.

我只是添加一些有趣的評論。正如您可以想像的那樣，我們與許多建築公司打交道，他們不僅與我們打交道，還與其他開發商打交道，尤其是與大量用戶打交道。因此，他們所說的一件事是，他們並不真正忙於新建築，但他們非常忙於為租戶重新配置空間。

And I was talking with one a few weeks ago in Seattle, who's active all over the Western United States. And the comment that was made is that they're doing a third thing for the same tenant on a major -- on their utilization of a major campus and they keep trying to figure out how to add more capacity for more people, because their numbers keep changing.

幾週前我在西雅圖與一位活躍在美國西部各地的人進行了交談。人們的評論是，他們正在為一個專業的同一個租戶做第三件事——關於他們對一個主要校園的利用，他們一直在努力找出如何為更多的人增加更多的容量，因為他們的人數不斷改變。

So what has sort of happened at least in some of these companies is they were wondering whether people were going to come back to work, they wanted people to come back to work. Now they're coming back to work. Now they're coming back to work more, and they're coming back at higher rates.

因此，至少在其中一些公司中發生的事情是，他們想知道人們是否會回去工作，他們希望人們回去工作。現在他們要回去工作了。現在，他們更多地重返工作崗位，而且回歸率更高。

In some cases, people have slowed down the back-to-work reentry in terms of making -- giving time to reconfigure their space to bring more people back to work. So those are just some anecdotal comments, but it's happening in real time.

在某些情況下，人們放慢了重返工作崗位的速度——給時間來重新配置他們的空間，讓更多的人重返工作崗位。所以這些只是一些軼事評論，但它正在實時發生。

We now turn to Vikram Malhotra with Mizuho.

我們現在轉向 Vikram Malhotra 和 Mizuho。

Just going back to sort of the green shoots comment. I guess we've heard from a couple of multifamily players that there's a bit more, I guess, they're themselves seeing green shoots and more traffic. You talked a little bit about the AI trajectory or potential, I should say there. But could you maybe just elaborate a bit more on, like, say, the office, the pipeline you're looking at? What sort of types of tenants, the size requirements? And if you could break that up sort of between strictly office and then Life Sciences?

回到剛剛萌芽的評論。我想我們已經從一些多家庭玩家那裡聽說，我想他們自己也看到了新芽和更多的流量。我應該說，你談到了人工智能的軌跡或潛力。但您能否詳細說明一下，例如您正在查看的辦公室、管道等？什麼樣的租戶類型、規模要求？如果你能將嚴格的辦公室和生命科學之間的界限分開嗎？

Yes, you want to take that, Rob?

是的，你想接受這個嗎，羅布？

Sure. Let me make a couple of just general comments about what we're seeing in terms of just -- and give you sentiment in terms of the tenant markets. Real estate -- we've said this before, real estate is a very local business. And even though headlines nationally are that demand is off and less than we'd like. We're seeing positive absorption play out in our portfolio in cities like Seattle, Hollywood and Long Beach, as John had mentioned.

當然。讓我就我們所看到的情況發表一些一般性評論，並就租戶市場向您提供一些看法。房地產——我們之前已經說過，房地產是一個非常本地化的行業。儘管全國范圍內的頭條新聞都是需求下降並且低於我們的預期。正如約翰提到的，我們在西雅圖、好萊塢和長灘等城市的投資組合中看到了積極的吸收。

Another note I think I'd make is that while overall market experienced negative absorption, the newest and best buildings have actually experienced over 100 million square feet of positive absorption in the last 2 years. A note that's really important about the Bay Area is that VC funding overall is down. Everyone knows that and reads it. But Bay Area companies took more than half of the funding nationally. And that's about $20 billion. So we're expecting to see more demand come out of that sort of investment.

我想我要指出的另一點是，雖然整個市場經歷了負吸納，但最新、最好的建築在過去兩年實際上經歷了超過 1 億平方英尺的正吸納。關於灣區，真正重要的一點是，風險投資資金總體下降。每個人都知道並閱讀它。但灣區公司獲得了全國一半以上的資金。這大約是 200 億美元。因此，我們預計此類投資會產生更多需求。

And the last point I'd make is the transaction pace remains somewhat slow, but it's picked up, and tenants are really seeking flexibility in their lease terms and they're -- just how they utilize space, not only their space, but our space, meaning our common areas, our decks, et cetera. the mix, I'd say, portfolio-wide is somewhat balanced between technology and professional services and banking firms. That's particularly true in San Francisco, where you have about 1/3 of the demand right now, there's about 4.5 million square feet of demand. About 1/3 of that is from technology. The other 1/3 of that is from professional services, banking, et cetera.

我要說的最後一點是，交易速度仍然有些緩慢，但已經有所回升，租戶確實在租賃條款中尋求靈活性，他們正在如何利用空間，不僅是他們的空間，還有我們的空間。空間，指的是我們的公共區域、我們的甲板等等。我想說，整個投資組合在技術、專業服務和銀行公司之間是某種平衡的。在舊金山尤其如此，那裡現在有大約 1/3 的需求，大約有 450 萬平方英尺的需求。其中大約 1/3 來自技術。另外 1/3 來自專業服務、銀行業等。

Everybody is talking about AI. You just mentioned that. Right now, in San Francisco, there's about 750,000 square feet of AI demand. Those tenants have started out probably in the fourth quarter of last year and the first quarter of this year in the 5,000-foot range, and they've now grown to about 10,000 to 15,000 feet.

每個人都在談論人工智能。你剛才提到了這一點。目前，舊金山的人工智能需求面積約為 750,000 平方英尺。這些租戶可能在去年第四季度和今年第一季度開始在 5,000 英尺範圍內使用，現在已增長到約 10,000 至 15,000 英尺。

So on the AI front, as John said, it's very difficult to predict where that goes. And these companies are in early stages. So more to come on that. And I think one of the things we track really closely are what the big [fan] companies and the level below the fan companies are doing with respect to AI, because those companies will spawn a lot of [eater] companies, if you will, over the next, whatever you want to call it, 2 years or so.

因此，正如約翰所說，在人工智能方面，很難預測它的發展方向。這些公司還處於早期階段。所以還有更多的事情要做。我認為我們真正密切跟踪的事情之一是大型[粉絲]公司和低於粉絲公司在人工智能方面所做的事情，因為這些公司將催生很多[吃者]公司，如果你願意的話，接下來，無論你怎麼稱呼它，大約兩年。

I think there was also a question about the mix.

我認為還有一個關於混合的問題。

Yes. Any green shoots in terms of Life Sciences more strictly?

是的。更嚴格地說，生命科學方面有什麼新芽嗎？

Yes. I mean, as I mentioned, the VC funding that the Bay Area commanded over 50% nationally. And I mentioned earlier, several firms that we didn't see in Q1 got funding just recently in Q2. And when you get that sort of investment, then demand typically follows. It doesn't follow immediately. And Boards of Life Science companies are still trying to keep people or companies within the space they have rather than taking new.

是的。我的意思是，正如我提到的，灣區的風險投資資金佔全國的 50% 以上。我之前提到過，我們在第一季度沒有看到的幾家公司最近在第二季度獲得了融資。當你獲得這種投資時，需求通常就會隨之而來。它不會立即發生。生命科學公司的董事會仍在努力將人員或公司留在他們現有的空間內，而不是接受新的空間。

But that said, as I said at Oyster Point, we're seeing -- we're pleased with the activity we're seeing, both in a larger tenant format as well as multi-tenant, meaning a floor, 40,000 foot to 80,000-foot tenant range.

但話雖如此，正如我在 Oyster Point 所說，我們對所看到的活動感到滿意，無論是大型租戶形式還是多租戶形式，即一個樓層，40,000 英尺到 80,000 英尺英尺租戶範圍。

Great. And then just one clarification on maybe sublet trend across San Francisco, maybe even just broader Bay Area. Some of my recent conversations suggested that sublet volumes are likely to -- I'm saying material, but we were at such high levels, but moderate or come down. And I'm wondering if you -- in real time, seen any trends that would indicate sublet space is coming off the market more rapidly.

偉大的。然後只是對舊金山乃至更廣泛的灣區可能的轉租趨勢進行澄清。我最近的一些談話表明，轉租量可能會——我說的是實質性的，但我們處於如此高的水平，但適度或下降。我想知道您是否實時看到任何表明轉租空間正在更快退出市場的趨勢。

Yes. I hate making predictions, because I'll do it and then something will be announced this afternoon. But it definitely feels in the Bay Area, particularly that sublease space has plateaued in terms of big tech giving back space. There's actually been some talk, and it's very -- again, who knows what it plays out to, but some tenants actually looking at perhaps taking some of the space back off the market.

是的。我討厭做出預測，因為我會做出預測，然後今天下午就會宣布一些事情。但在灣區確實有這種感覺，尤其是在大型科技公司回饋空間方面，轉租空間已經趨於穩定。實際上已經有一些討論，而且非常 - 再次，誰知道它會產生什麼結果，但一些租戶實際上正在考慮從市場上收回一些空間。

And we saw that happen during the pandemic where our tenant based on the sublease market, because they weren't using it or occupying it, and then they subsequently took it off. So we are seeing although the numbers ticked up this quarter in terms of available sublease space, I do think it's plateaued. And again, you have to distinguish between the true Class A really marketable sublease space and the, what I would call second and third tier space that's going to struggle mightily during this time. So it's not going to have activity.

我們看到這種情況在大流行期間發生，我們的租戶基於轉租市場，因為他們沒有使用或占用它，然後他們隨後將其取消。因此，我們看到，儘管本季度可用轉租空間的數量有所增加，但我確實認為它已趨於穩定。再說一遍，你必須區分真正的 A 級真正有市場的轉租空間和我所說的二線和三線空間，後者在這段時間會陷入困境。所以不會有活動。

Our next question comes from Dylan Burzinski with Green Street.

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

Just going back to your comments on being patient with regard to going on offense and potentially looking at acquisitions. Could you guys help us, give us a sense for some of the data points or things you're looking at to sort of start that work?

回到你關於對進攻保持耐心並可能考慮收購的評論。你們能否幫助我們，讓我們了解一些數據點或你們正在尋找的東西來開始這項工作？

Well, it's kind of the obvious stuff, but it's -- we look at based upon our what we all see, what we all have available as information and more particularly, what we have with regard to the relationships we have with tenants, what they're thinking as they confide with us on various comments. How that sort of relates to Kilroy's position and where we want to place our bets, there's going to be a lot of confusion in my view, with regard to what's transacting early on.

嗯，這是顯而易見的事情，但我們是根據我們所看到的、我們所掌握的信息，更具體地說，我們與租戶的關係以及他們的關係來看待的。當他們向我們吐露各種評論時，他們正在思考。這與基爾羅伊的位置以及我們想要下注的位置有什麼關係，在我看來，關於早期的交易，將會有很多混亂。

We're seeing right now, properties that were -- properties we never would have had an interest in back in 2019 or 2018 or whatever that may have traded back then that are coming back into trade now, where there's either failed debt structure or failed ownership structure or whatever it might be. There's just a lot of product out there that is not quality that's going to be busted up.

我們現在看到，那些在 2019 年或 2018 年我們永遠不會感興趣的房產，或者當時可能已經交易過的任何房產，現在又重新開始交易，要么債務結構失敗，要么失敗所有權結構或任何可能的結構。市場上有很多產品質量不高，不會被破壞。

And we're going to see that in all of our markets. whether it's a formal marketing process or a soft marketing process, I think you're going to see some things trade at very low rates that are properties that require hundreds of dollars of CapEx. And if you buy it and you spend it, you're going to end -- you're still going to end up with a pig. So it's going to be mixed.

我們將在所有市場中看到這一點。無論是正式的營銷流程還是軟營銷流程，我認為您都會看到一些以非常低的價格進行交易的資產，這些資產需要數百美元的資本支出。如果你買了它並花掉了它，你就會結束——你仍然會得到一頭豬。所以它會是混合的。

And what we look at is what -- we're in this business to make money. So if you can buy a quality product at a good rate that has super upside, that's interesting, but we want to know that there is a more functioning market. If you take a look at 2010, which is probably a pretty good thing for -- to look at with regard to Kilroy, we moved into San Francisco and bought some properties at very low prices that were okay, yields, and we didn't predict the yields would go up too greatly for a few years and then a skyrocket, they really hockey sticked. And that ended up making us a lot of money and our shareholders a lot of money and made some great growth.

我們關注的是——我們從事這個行業是為了賺錢。因此，如果你能以優惠的價格購買具有超級上漲空間的優質產品，那就很有趣，但我們想知道有一個更有效的市場。如果你看一下2010 年，這可能是一件非常好的事情——就基爾羅伊而言，我們搬到了舊金山，以非常低的價格購買了一些房產，這些房產的收益率還不錯，但我們沒有預測產量會在幾年內大幅上漲，然後飆升，他們真的堅持了下來。這最終讓我們賺了很多錢，我們的股東也賺了很多錢，並取得了巨大的增長。

We were able to do that because others were licking their wounds, they didn't have a capital structure, and they didn't see the opportunity. I think we're going to see some of that. Now the problem is, and I've talked to just about everybody on this in investor calls or the NAREIT conferences that there is a lot of products that we're just not interested in, either locationally or because of its physical bones. It's just obsolete or near obsolete. We do not want to touch that at any price, unless it's -- unless you can buy it, you have a covered land play, and you have a really great development site. We might be interested in one-offs on that.

我們之所以能夠做到這一點，是因為其他人正在舔舐傷口，他們沒有資本結構，而且他們沒有看到機會。我想我們會看到其中的一些。現在的問題是，我在投資者電話會議或 NAREIT 會議上與幾乎所有人討論過這個問題，我們對很多產品不感興趣，無論是地理位置還是因為其物理結構。它只是過時或接近過時。我們不想以任何價格觸及它，除非它——除非你能買它，你有一個有蓋的土地，並且你有一個非常好的開發場地。我們可能對一次性的事情感興趣。

So we look at everything. We'd like to see a little bit more stability in the capital markets. Obviously, if you're going to buy stuff, you want to have the capital to do it. You don't want to be under stress or throw curveballs to the investor market. We think our position for -- as I've commented on in my formal remarks, is very strong for us to play offense.

所以我們關註一切。我們希望看到資本市場更加穩定。顯然，如果你要買東西，你需要有資金去做。您不想承受壓力或給投資者市場帶來麻煩。正如我在正式講話中所評論的那樣，我們認為我們的立場非常有利於我們進攻。

Frankly, as a company, we've never had the quality of development pipeline that's ready to go, not even 10% of that in prior -- coming out of prior recessions that we have today. So we think we're really well positioned in that regard. We think we're really well positioned on the capital front with liquidity and so forth. And we think we have the right kind of product. So it's going to play out over time. I don't know exactly how it's going to play out, but I think we'll be opportunistic as we have in the past, and we've come out of these things pretty well out of future downturns.

坦率地說，作為一家公司，我們從未擁有過準備就緒的開發渠道質量，甚至連之前的 10% 都沒有——從我們今天所經歷的之前的衰退中走出來。所以我們認為我們在這方面確實處於有利位置。我們認為我們在流動性等方面的資本方面確實處於有利位置。我們認為我們擁有合適的產品。所以隨著時間的推移，它將會發揮作用。我不知道具體會如何發展，但我認為我們會像過去一樣抓住機會，而且我們已經很好地擺脫了未來的低迷。

And so that's kind of the way we're thinking. I can't really be -- I can't get -- if everybody had the rule book on exactly what to do, exactly when, there wouldn't be any opportunity, because we'd all be doing it. It's going to be a case of one-offs. I think it's going to be tough to buy big portfolios, because so much of the game has changed. It used to be, you could buy a lot of Class B product. You anticipated that those products -- those projects or buildings would be relevant. And as I've made comment on many times before, I think a lot of the buildings that are out there today are no longer relevant. So more to come.

這就是我們的想法。我真的不能——我不能理解——如果每個人都有一本規則手冊，明確規定要做什麼、什麼時候做，就不會有任何機會，因為我們都會這樣做。這將是一次性的情況。我認為購買大型投資組合將會很困難，因為遊戲規則已經發生了很大變化。以前，你可以購買很多 B 類產品。您預計這些產品——那些項目或建築物將是相關的。正如我之前多次評論過的那樣，我認為今天存在的許多建築物已不再相關。未來還會有更多。

Appreciate that thorough detail, John. I guess just one more. Are you able to share the underwritten LTV and debt yield at One Paseo?

約翰，欣賞這個詳盡的細節。我想只剩下一個了您能否分享 One Paseo 的承保 LTV 和債務收益率？

We can't share that. But what we can say is that given the nature of the partner, you can assume that this was underwritten conservatively.

我們不能分享這一點。但我們可以說的是，考慮到合作夥伴的性質，您可以假設這是保守承保的。

We now turn to Peter Abramowitz with Jefferies.

現在我們請杰弗里斯的彼得·阿布拉莫維茨來談談。

Just a modeling question, I wanted to clarify. So does the One Paseo deal take the need for term loan proceeds off the table sort of near or medium term, at least through the rest of this year?

只是一個建模問題，我想澄清一下。那麼，One Paseo 交易是否會在近期或中期（至少在今年剩餘時間內）消除對定期貸款收益的需求？

So the way the term loan was structured is that we have 12 months to pull down the cash, and if we choose not to, then those proceeds go away. But from what you can -- what we said in our formal remarks, we do anticipate pulling down the remaining $170 million of cash on the term loan by the end of the third quarter. And then just as you think about it modeling-wise, there, we have a spread of SOFR plus 100 relative to wherever we can reinvest it. But certainly, the rates on reinvesting capital have gone up in the last 3 months. So the dilution there is somewhat modest.

因此，定期貸款的結構方式是，我們有 12 個月的時間來提取現金，如果我們選擇不這樣做，那麼這些收益就會消失。但據我們在正式講話中所說的，我們確實預計到第三季度末將定期貸款中剩餘的 1.7 億美元現金抽走。然後，正如您從建模角度思考的那樣，相對於我們可以再投資的地方，我們的 SOFR 加 100。但可以肯定的是，過去三個月再投資資本的利率有所上升。因此，稀釋度是適度的。

Got it. And then one more on Life Science. So there's a pretty meaningful amount of new supply coming to South San Francisco right now, maybe not as much San Diego. Could you just talk about what you're seeing on the ground in terms of how rents are moving and how the new supply is affecting your conversations with potential tenants, particularly at Oyster Point?

知道了。然後是關於生命科學的另一篇。因此，目前南舊金山有相當數量的新供應，可能沒有聖地亞哥那麼多。您能否談談您在實地看到的租金變化情況以及新供應如何影響您與潛在租戶（尤其是 Oyster Point）的對話？

Rob, do you want to cover that?

羅布，你想報導這個嗎？

Sure. This is Rob. Sure, John. Again, I guess, what I'd -- first of all, I'd define -- let's define the market. We're in Oyster Point, which is a very specific submarket in South San Francisco. And it's -- I like to call it the Main and Main of the Life Science market in the Bay Area. There is less product being delivered in that because -- that particular submarket. We have about a little over 0.5 million feet that we're competing with. This new construction and rental rates and new construction have not declined materially.

當然。這是羅布。當然，約翰。再次，我想，我首先要定義的是，讓我們定義市場。我們位於 Oyster Point，這是南舊金山一個非常特殊的子市場。我喜歡將其稱為灣區生命科學市場的主要市場。由於該特定子市場，交付的產品較少。我們要與之競爭的高度大約為 50 萬英尺多一點。此次新開工率和新開工率並沒有大幅下降。

There is other space in South San Francisco, however, as I just said, different submarkets. So there's a submarket north of us called Sierra Point, which has different fundamentals and is just a market we actually prefer Oyster Point over, and most of the large tenants do as well.

然而，正如我剛才所說，南舊金山還有其他空間，不同的子市場。因此，我們北部有一個子市場，稱為 Sierra Point，它具有不同的基本面，但實際上我們更喜歡 Oyster Point，而大多數大型租戶也是如此。

Our final question comes from Neil O'Connell with Bank of America.

我們的最後一個問題來自美國銀行的尼爾·奧康奈爾。

Can you hear me? Okay. Sorry. The name was wrong. It's Camille Bonnel from Bank of America. Many of my questions have been already addressed. So just one for me. Eliott, your update around parking revenues, adding positively to core operating outlook, does that only reflect the utilization that you're seeing today?

你能聽到我嗎？好的。對不起。名字錯了。我是美國銀行的卡米爾·博內爾。我的許多問題已經得到解答。所以只給我一個。艾略特，您對停車收入的更新，對核心運營前景產生了積極的影響，這是否只反映了您今天看到的利用率？

Just given that a number of larger companies are starting to implement that return to work over the summer and into the fall, does it mean that if these trends continue to improve, we'll see further upside to guidance from this income stream?

鑑於許多較大的公司開始在夏季和秋季恢復工作，這是否意味著如果這些趨勢繼續改善，我們將看到這一收入流的指導進一步上行？

To the first part of your question, yes, this reflects what we've seen to date. So to the extent that utilization continues to get better, then we hope that, that continues to translate to better parking revenue.

對於你問題的第一部分，是的，這反映了我們迄今為止所看到的情況。因此，只要利用率繼續提高，我們希望這能繼續轉化為更好的停車收入。

This concludes our Q&A. I'll now hand back to Bill Hutcheson, SVP of Investor Relations and Capital Markets. Closing remarks.

我們的問答到此結束。現在我將把話題交回給投資者關係和資本市場高級副總裁比爾·哈奇森 (Bill Hutcheson)。結束語。

Great, Elliot. Thank you for coordinating the call. Thank you, everyone, for joining us today. We appreciate your continued interest in Kilroy. Have a good day.

太棒了，艾略特。感謝您協調通話。謝謝大家今天加入我們。我們感謝您對基爾羅伊的持續關注。祝你有美好的一天。

Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。我們衷心感謝您的參與。您現在可以斷開連接。