Kilroy Realty Corp (KRC) 2024 Q2 法說會逐字稿

Good afternoon and thank you for attending today's KRC's 2Q '24 earnings conference call. My name is Sam and I will be your moderator for today's call. (Operator Instructions)

下午好，感謝您參加今天的 KRC '24 年第二季財報電話會議。我叫 Sam，我將擔任今天電話會議的主持人。（操作員說明）

I'll now turn you over to Taylor Friend, Senior Vice President, Capital Markets and Treasurer. Taylor, the floor is yours.

現在我將把您交給資本市場高級副總裁兼財務主管泰勒‧弗蘭德 (Taylor Friend)。泰勒，地板是你的。

Good morning, everyone. Thank you for joining us on the call with me today are Angela Aman, CEO; and Eliott Trencher EVP, CIO and CFO. In addition Justin Smart, President; and Rob Paratte EVP, Chief leasing Officer will be available for Q&A.

大家，早安。感謝您今天與我一起參加電話會議，執行長安吉拉·阿曼 (Angela Aman)； Eliott Trencher 執行副總裁、資訊長和財務長。此外，賈斯汀·斯馬特 (Justin Smart)，總裁；首席租賃官 Rob Paratte 執行副總裁將出席問答環節。

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 forward-looking information on this call and in the supplemental.

首先，我需要說的是，我們在本次電話會議中討論的一些資訊本質上是前瞻性的，請參閱我們的補充資料包，以了解有關本次電話會議和補充資料中前瞻性資訊的聲明。

This call is being webcast live on our website and will be available for replay for the next eight days. 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.

本次電話會議正在我們的網站上進行網路直播，並將在接下來的八天內進行重播。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取得。

Angela will start the call with a strategic overview and quarterly highlights, and Elliot will discuss our financial results and provide you with updated 2024 guidance. Then we will be happy to take your questions. Angela?

Angela 將首先介紹策略概述和季度亮點，Elliot 將討論我們的財務表現並為您提供最新的 2024 年指導。那麼我們將很樂意回答您的問題。安吉拉？

Thanks, Taylor. It's great to have you on the call this quarter. I'm pleased to report another strong quarter of results that reflects the hard work and dedication of the entire Kilroy team and underscores the recovery that continues to take hold across our portfolio.

謝謝，泰勒。很高興本季接到您的電話。我很高興地報告又一個強勁的季度業績，這反映了整個 Kilroy 團隊的辛勤工作和奉獻精神，並強調了我們投資組合的持續復甦。

While this recovery will at times be uneven, we are seeing encouraging signs in all of our markets that reinforce our conviction that the trend line is moving in the right direction.

雖然這種復甦有時會不平衡，但我們在所有市場都看到了令人鼓舞的跡象，這增強了我們的信念，即趨勢線正在朝著正確的方向移動。

From a market perspective, we are seeing particular strength right now in San Diego and Bellevue, Washington, both of which continue to benefit from broad-based demand across a wide range of industry categories, supported by higher physical occupancy rates.

從市場角度來看，我們目前在聖地牙哥和華盛頓州貝爾維尤看到了特別的優勢，這兩個城市繼續受益於各行業類別的廣泛需求，並得到較高的實際入住率的支持。

In San Francisco, total tenant demand in the market has doubled over the course of the last 18 months. And leasing volumes are slowly but consistently improving, supported by growing demand for many new-to-market tenants, including those in AI sector.

在舊金山，市場上的租戶總需求在過去 18 個月中翻了一番。在許多新進入市場的租戶（包括人工智慧領域的租戶）需求不斷增長的支持下，租賃量正在緩慢但持續地增長。

And while the South Lake Union submarket and Seattle and our submarkets in Los Angeles have been slower to recover, we are making headway, in particular in Seattle. The previously noted strength of demand in Bellevue, combined with the limited amount of Class A vacancy in that submarket starting to have important spillover benefits for South Lake Union, an encouraging dynamic as we near the completion of our major repositioning project at Westgate.

雖然南湖聯合子市場和西雅圖以及我們在洛杉磯的子市場恢復速度較慢，但我們正在取得進展，特別是在西雅圖。先前提到的貝爾維尤需求強勁，加上該子市場有限的A 級空置，開始為南湖聯盟帶來重要的溢出效益，這是一個令人鼓舞的動態，因為我們即將完成西門的主要重新定位專案.

A major benefit to Kilroy during this recovery has been and will continue to be the indisputable flight to quality that we are seeing play out in our sector and specifically in our markets, which has been a driving factor behind virtually every conversation we are having with existing and prospective tenants alike.

在這次復甦期間，基爾羅伊的一個主要好處已經並將繼續是無可爭議的對質量的追求，我們看到我們的行業，特別是我們的市場，這幾乎是我們與現有的每一次對話背後的驅動因素。

These tenants are singularly focused on the quality and the monetization of their space and the capabilities and financial wherewithal of their landlord. And we have no doubt that the focus on quality and sponsorship will only become more attenuated in an environment of virtually no new supply.

這些租戶特別關注其空間的品質和貨幣化以及房東的能力和財力。我們毫不懷疑，在幾乎沒有新供應的環境中，對品質和贊助的關注只會變得更加弱化。

Over the last 60 days. We've been particularly encouraged by a number of discussions with potential new tenants with space requirements over 100,000 square feet. In addition, recent high-profile return-to-work announcements by major employers and a newfound focus on the enforcement of new and existing mandates underscores the recognition that in-person connection is critical to the long-term success of both employees and organizations.

過去 60 天。與空間需求超過 100,000 平方英尺的潛在新租戶進行的多次討論讓我們深受鼓舞。此外，最近主要雇主高調宣布重返工作崗位，以及對執行新的和現有的規定的新關注，都突顯了人們認識到，面對面的聯繫對於員工和組織的長期成功至關重要。

During the second quarter, we signed approximately 235,000 square feet of leases with a weighted average lease term of about 5.5 years and cash leasing spreads of approximately minus 4.5%, excluding one retail lease in San Francisco, our leasing spreads were roughly flat.

第二季度，我們簽署了約235,000平方英尺的租賃合同，加權平均租賃期限約為5.5年，現金租賃利差約為-4.5%，不包括舊金山的一項零售租賃，我們的租賃利差大致持平。

Leasing activity accelerated as we move through the quarter, a trend which continued into July, where we signed an additional 184,000 square feet of leases, including a 118,000 square foot multi-year early renewal with SAP, a key center in Bellevue.

隨著本季度的進展，租賃活動加速，這一趨勢一直持續到7 月份，我們額外簽署了184,000 平方英尺的租賃合同，其中包括與貝爾維尤的一個重要中心SAP 簽訂的118,000 平方英尺的多年期提前續約合約。

Shifting to Kilroy Oyster Point tenant discussions on Phase two remain active. During the last earnings call, we referenced a pickup in touring activity, which has continued and as we approach project completion, prospects are now able to fully appreciate the tangible merits of our campus, which include expansive water views, conferencing facilities with indoor and outdoor meeting spaces, multiple upscale food service offerings, a well-appointed fitness center with Outdoor Fitness, patio on-site Bay frontage trails reserve for walking and biking, and importantly, the optionality inherent until there is ability to accommodate future growth on the site.

關於第二階段搬遷至 Kilroy Oyster Point 租戶的討論仍然活躍。在上次財報電話會議中，我們提到了旅遊活動的回升，該活動仍在繼續，隨著我們接近項目完成，潛在客戶現在能夠充分欣賞我們園區的有形優點，其中包括廣闊的水景、室內外會議設施會議空間、多種高檔餐飲服務、設備齊全的健身中心（帶戶外健身設施）、現場露台、海灣臨街小徑可供步行和騎自行車，更重要的是，在能夠適應現場未來增長之前，固有的選擇性。

Our spec suites, which will deliver in the fourth quarter of this year are generating interest from multiple early-stage life science companies, while later stage life science companies in addition to more traditional office tenants are expressing interest in the balance of the projects.

我們的規格套件將於今年第四季度交付，引起了多家早期生命科學公司的興趣，而後期生命科學公司以及更傳統的辦公室租戶也對該項目的平衡表示了興趣。

While the continued acceleration in tenant interest is an affirmation of the quality and relevancy of what we have built, the job is not done until the project is leased, and this is a top priority across the organization, and we are laser focused on execution.

雖然租戶興趣的持續增長是對我們所建項目的品質和相關性的肯定，但直到項目出租後，這項工作才算完成，這是整個組織的首要任務，我們非常專注於執行。

From a capital allocation standpoint, we have seen an improvement in both the quantity and quality of office and life science offerings that have recently come to market. We're spending more time evaluating transactions, and we'll be ready to execute when we see values that are appropriate relative to the risk environment and our cost of capital.

從資本配置的角度來看，我們看到最近上市的辦公室和生命科學產品的數量和品質都有所提高。我們花更多時間評估交易，當我們看到相對於風險環境和資本成本合適的價值時，我們將準備好執行。

As always, we intend to be disciplined and ensure that any acquisitions we pursue will be value enhancing for shareholders as it relates to dispositions, last quarter, we mentioned that we were in the process of evaluating the highest and best use of various sites in our future development pipeline.

像往常一樣，我們打算遵守紀律，並確保我們追求的任何收購都會為股東帶來價值提升，因為這涉及到處置，上個季度，我們提到我們正在評估我們的各個網站的最高和最佳利用情況。

We have concluded that several of the sites have an optimal use that is no longer office or life science and feedback we have received from multiple market participants has further validated this year. We're actively working on transactions for a few of these parcels and contemplating a variety of potential structures to maximize value.

我們得出的結論是，其中幾個站點的最佳用途不再是辦公室或生命科學，而且我們從多個市場參與者收到的反饋今年得到了進一步驗證。我們正在積極處理其中一些地塊的交易，並考慮各種潛在的結構以實現價值最大化。

While the ultimate realization of proceeds may take time as parcels orientated for alternative uses. We believe that these transactions will represent a significant well-priced source of dry powder for the Company to participate in an increasingly active acquisitions market while also continuing to prioritize the balance sheet and maintain the company's substantial liquidity profile.

雖然收益的最終實現可能需要一段時間，因為地塊將用於其他用途。我們相信，這些交易將成為公司參與日益活躍的收購市場的重要且價格合理的乾粉來源，同時繼續優先考慮資產負債表並保持公司的大量流動性狀況。

Before turning the call over to Elliot, I'd also like to discuss some of the organizational changes we announced last night, one of my key objectives since joining the company has been to ensure that we have appropriate resource levels across each functional area, reflecting both the opportunities and challenges of the environment in which we are operating.

在將電話轉給埃利奧特之前，我還想討論一下我們昨晚宣布的一些組織變革，自加入公司以來我的主要目標之一是確保我們在每個職能領域擁有適當的資源水平，反映我們經營環境的機會與挑戰。

As mentioned on previous calls, I have been blown away by the talent and professionalism of this organization and in particular by the engagement and willingness of the executive and senior leadership teams to embrace change in order to optimally position the platform for success going forward.

正如在之前的電話會議中提到的，我對這個組織的才華和專業精神感到震驚，特別是執行和高級領導團隊的參與和願意接受變革，以便為未來的成功定位最佳平台。

First and foremost, I'd like to thank Eliott for his partnership over the last six months and his combined CEO and CFO role, Elliot has been truly invaluable to me as I've gotten up to speed at the company and I'm very much looking forward to continuing to partner with them on all of our capital allocation objectives going forward as he focuses on as Chief Investment Officer responsibilities.

首先也是最重要的，我要感謝Eliott 在過去六個月中的合作以及他兼任首席執行官和首席財務官的角色，Elliot 對我來說確實非常寶貴，因為我已經熟悉了公司的情況，而且我非常高興。

In addition, to leading our efforts in the transactions market. The investments team under Eliott's leadership will also oversee long term asset level, strategic planning, working even more closely with our leasing and property management teams going forward.

此外，也要引領我們在交易市場上的努力。艾略特領導下的投資團隊還將監督長期資產水準、策略規劃，並與我們的租賃和物業管理團隊更密切合作。

As a result of the refinement of Eliott's role, we will be bringing a new CFO on board. I've had the pleasure of working with Jeffrey Kuehling in a number of different settings already. And I know that his deep skill set in finance accounting, asset management and technology change and innovation will serve the company extraordinarily well going forward.

由於艾略特角色的完善，我們將任命一位新的財務長。我很高興能與 Jeffrey Kuehling 在許多不同的環境中合作。我知道他在財務會計、資產管理以及技術變革和創新方面的深厚技能將為公司的未來提供非常好的幫助。

I'm also thrilled to announce the promotion of Lauren Stadler to EVP, General Counsel. Lauren has been with Kilroy for over 10 years, most recently serving as SVP, Corporate Counsel. She brings significant legal and institutional knowledge to her new role as well as impeccable insight and judgment. I'm excited to welcome both Jeffrey and more into the executive team on the leasing team we also announced that Michael Schmidt will be joining Kilroy as SVP leasing for the Northern California region. And we're looking forward to welcoming Michael, who will be joining an outstanding team of leasing professionals that are ready to capitalize on the continued recovery in our space. Eliot.

我還很高興地宣布 Lauren Stadler 晉升為執行副總裁兼總法律顧問。Lauren 在 Kilroy 工作了 10 多年，最近擔任公司法律顧問資深副總裁。她為她的新角色帶來了重要的法律和製度知識以及無可挑剔的洞察力和判斷力。我很高興歡迎傑弗裡和其他人加入租賃團隊的執行團隊，我們也宣布邁克爾·施密特將加入基爾羅伊，擔任北加州地區的租賃高級副總裁。我們期待著邁克爾的加入，他將加入一支由租賃專業人士組成的優秀團隊，他們已準備好利用我們領域的持續復甦。艾略特.

Thanks, Angela. I appreciate the kind words. If in a rewarding experience being the CFO, the last 2.5 years, and I look forward to focusing on the CEO role going forward. But that said, let's get into the quarterly results.

謝謝，安吉拉。我很欣賞這些客氣話。如果過去 2.5 年擔任財務長是一次有益的經歷，那麼我期待未來專注於執行長的角色。但話雖如此，讓我們來看看季度業績。

The second quarter represented another solid performance with FFO of $1.10 or $0.01 below the first quarter. The decrease was predominantly due to lower interest income from lower cash balances and higher G&A due to the timing of spend on a same store basis, second quarter cash NOI was roughly flat, so a substantial improvement from last quarter as we no longer had meaningful nonrecurring items in the comparative period.

第二季的 FFO 表現再次穩健，為 1.10 美元，比第一季低 0.01 美元。下降的主要原因是現金餘額減少導致利息收入減少，以及由於同店支出時間安排導致一般管理費用增加，第二季度現金NOI 大致持平，因此較上季度有顯著改善，因為我們不再有有意義的非經常性支出比較期間的項目。

At the end of the quarter, our stabilized portfolio was 83.7% occupied and 85.4% leased. The decrease from the prior quarter was due to some move outs mainly in Los Angeles, partially offset by some move-ins in San Diego. The spread between our leased and percent occupied is now 170 basis points, the largest it has been since the second quarter of 2023.

截至本季末，我們穩定的投資組合已佔用 83.7%，已出租 85.4%。較上一季的下降是由於主要在洛杉磯的一些人員遷出，部分被聖地亞哥的一些人員遷入所抵消。我們的租賃率和入住率之間的差距目前為 170 個基點，這是自 2023 年第二季以來的最大水準。

Turning to the balance sheet, net debt to trailing 12-month EBITDA was in the mid six times and our liquidity remained robust. As of quarter end, we had over $1.9 billion of available liquidity, comprised of $835 million of cash and $1.1 billion available on our line of credit.

轉向資產負債表，淨負債與過去 12 個月 EBITDA 比率處於中間六倍，我們的流動性仍然強勁。截至季末，我們擁有超過 19 億美元的可用流動資金，其中包括 8.35 億美元的現金和 11 億美元的可用信貸額度。

Now let's discuss our updated 2024 guidance. No acquisitions or dispositions or forecast remaining development spend is anticipated to be $100 million to $150 million, which when combined with year-to-date spend represents no change to our original full year midpoint of $250 million.

現在讓我們討論一下更新後的 2024 年指南。沒有收購或處置或預測剩餘開發支出預計為 1 億至 1.5 億美元，與今年迄今的支出相結合，顯示我們最初的全年中點 2.5 億美元沒有變化。

Our uses of capital for the balance of the year include the $125 million of development spend and a $400 million bond maturity in December. We intend to fund both with cash on hand, no change to our G&A guidance of $70 million to $80 million. Straight-line rent is projected to range between negative $7 million and $8 million.

我們今年剩餘時間的資本用途包括 1.25 億美元的開發支出和 12 月到期的 4 億美元債券。我們打算用手頭現金為兩者提供資金，7,000 萬至 8,000 萬美元的一般管理費用指導不變。直線租金預計在負 700 萬美元至 800 萬美元之間。

Average occupancy is projected to be 82.75% to 83.75%, so no change to the 83.25% midpoint. As a reminder, we continue to anticipate three large move-out totaling 350,000 square feet in the back half of the year.

平均入住率預計為 82.75% 至 83.75%，因此 83.25% 的中點不變。提醒一下，我們預計今年下半年將有三處大型搬遷，總面積達 35 萬平方英尺。

Salesforce and Seattle will leave in the third quarter and Capital One and Microsoft in the Bay area are expected to move out in the fourth quarter. Cash same-store NOI is projected to be between negative three and negative 4%, a 100 basis points increase at the midpoint due to higher net reimbursements, better parking revenue and some non-recurring fee income.

Salesforce和西雅圖將在第三季遷出，灣區的第一季資本和微軟預計將在第四季遷出。由於更高的淨報銷額、更好的停車收入和一些非經常性費用收入，現金同店 NOI 預計在負 3% 到負 4% 之間，中間增加 100 個基點。

In summary, our updated 2024 guidance is projected to range between $4.21 and $4.31 with a midpoint of $4.26 for a roughly $0.04 increase at the midpoint, predominantly due to better operating performance from higher net reimbursements and better parking revenue.

總而言之，我們更新後的2024 年指引預計將在4.21 美元至4.31 美元之間，中點為4.26 美元，中點增加約0.04 美元，這主要是由於更高的淨報銷和更好的停車收入帶來更好的營運績效。

On a quarterly basis, guidance implies FFO for the balance of the year will be about $1.3 or [$0.07] below the second quarter. So the bridge to get there can be broken down as follows subtract [$0.025] for lower occupancy, which factors in our move-outs and move-ins, subtract [$0.03] for lower interest income as our projected cash balance and reinvestment rate decline over the course of the year, attractive [$0.015] due to the timing of G&A spend.

按季度計算，指導意味著今年剩餘時間的 FFO 將比第二季度低約 1.3 美元或 [0.07 美元]。因此，到達那裡的橋樑可以分解如下，減去[0.025美元]表示較低的入住率，這會影響我們的遷出和入住，減去[$0.03]表示較低的利息收入，因為我們預計的現金餘額和再投資率會下降由於 G&A 支出的時間安排，這一年中具有吸引力 [0.015 美元]。

To conclude, we are pleased with the results in the quarter and that we are able to increase FFO and same-store NOI guidance for the second time this year. We continue to be vigilant about the balance sheet and are anticipating opportunities to put it to good use when appropriate. But that we're happy to take your questions. Sam?

總而言之，我們對本季的業績感到滿意，並且我們能夠今年第二次提高 FFO 和同店 NOI 指導。我們繼續對資產負債表保持警惕，並期待有機會在適當的時候充分利用它。但我們很樂意回答您的問題。薩姆？

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Nick Yulico, Scotiabank. Your line is now open.

尼克尤利科，豐業銀行。您的線路現已開通。

Yeah, thanks. I guess in terms of the on the new hiring that were maybe you could just talk a little bit more about the reason I guess for the CFO hiring and the split of the CIO, CFO role, and then as well on the G&A side, I know the guys in change, but can you talk a little bit more about how that could affect the run rate G&A maybe to 2025 issue?

是的，謝謝。我想就新招聘而言，也許你可以多談談我認為 CFO 招聘以及 CIO、CFO 角色劃分以及 G&A 方面的原因，我認為我知道那些正在發生變化的人，但是您能多談談這可能如何影響到2025 年問題的運行率G&A 嗎？

Yes, sure, Nick. I'm happy to take and take both of those questions. The decision, in particular on the CIO and CFO, was really just a recognition that particularly in this environment, those are two independently full-time jobs.

是的，當然，尼克。我很高興回答這兩個問題。這項決定，特別是關於資訊長和財務長的決定，實際上只是一種認識，特別是在這種環境下，這是兩項獨立的全職工作。

Eliot has been doing a beautiful job over the last couple of years of wearing both of those hats. But as we look into the environment going forward, I would say we're excited as you heard from both Eliot and I in our prepared remarks about transaction activity picking up or evaluating more things as we go forward.

艾略特在過去幾年裡一直扮演著這兩大角色，做得非常出色。但當我們展望未來的環境時，我想說，我們很興奮，因為您從艾略特和我在我們準備好的評論中聽到了有關交易活動在我們前進過程中拾取或評估更多事物的言論。

And I think his time and attention on the investment side will really be the demand for the company's benefit over the longer term. I would say, as you think about all of the organizational changes we announced last night I'd just make a couple of comments. As I mentioned earlier, I think one of the most important things in an environment that is challenging and dynamic is the one we're operating in is that we've got the right level of resources across every part of the business.

而且我認為他在投資上的時間和注意力確實是對公司長期利益的需求。我想說，當你想到我們昨晚宣布的所有組織變革時，我只想發表幾點評論。正如我之前提到的，我認為在我們所處的充滿挑戰和動態的環境中，最重要的事情之一是我們在業務的每個部分都擁有適當的資源。

So you saw some changes as it relates to sort of the executive leadership team, the leasing team, just making sure that across all the parts of the business, we have the right resources to meet the environment. That said, we are going to be have been and will continue to be extraordinarily disciplined with every dollar of G&A spend.

因此，您看到了一些與執行領導團隊、租賃團隊相關的變化，只是確保在業務的所有部分，我們擁有適當的資源來滿足環境的要求。也就是說，我們將繼續並將繼續嚴格控制每一美元的一般行政開支。

And that reflects not just the total amount of G&A that we incur going forward, but also making sure that every dollar of that G&A is responsibly allocated across the platform. So well, certainly in a sort of what you saw in the announcement last night or some ads and that do represent areas of the business where I saw a need to invest, and we've been able to more than offset that by additional savings and efficiencies in other areas of the business to fund those investments from a run rate perspective, obviously, we've left the G&A guidance range a little wide this year, given timing and other things that could impact 2024.

這不僅反映了我們未來產生的一般管理費用總額，而且還確保每一美元的一般管理費用都在整個平台上負責任地分配。好吧，當然是你在昨晚的公告或一些廣告中看到的，它們確實代表了我認為需要投資的業務領域，而且我們已經能夠通過額外的節省和資金來抵消這一點。時間安排和其他可能影響2024 年的因素，我們今年的G&A 指導範圍有點寬。

But as you think about it on a stabilized basis, you should expect that we see as a result of all the organizational initiatives and modest net savings going forward.

但當你在穩定的基礎上考慮它時，你應該期望我們看到的是所有組織舉措和未來適度的淨節省的結果。

Okay. Thanks, Angela. And then a second question is just on Oyster Point Phase 2. If you could just talk a little bit more about and the types of tenant demand you are seeing are these expanding tenants in the market? Are you trying to move tenants from other buildings in the market? And I just wanted to be clear on as we think about that project and the cost that's listed in the supplemental, if you will, for TI, build-out is at this point still reflected in that cost.

好的。謝謝，安吉拉。第二個問題是關於 Oyster Point 二期的。如果您能多談談您所看到的租戶需求類型，這些租戶是市場上不斷擴大的租戶嗎？您是否正在嘗試將租戶從市場上的其他建築中轉移出去？我只是想澄清一下，當我們考慮該項目以及補充中列出的成本時，如果您願意的話，對於 TI 來說，擴建目前仍然反映在該成本中。

And then on the free rent side, how we should think about that because I don't know if there's an issue where you're trying to grab tenants that have expirations a couple of years out and to be competitive, you may have to offer more free rent. How should we think about that decision making?

然後在免費租金方面，我們應該如何考慮這個問題，因為我不知道是否存在這樣的問題：你試圖抓住幾年後到期的租戶，為了保持競爭力，你可能必須提供更免租金。我們該如何考慮這個決策？

Yeah, I'm going to let Rob talk some of the specifics around the demand we're seeing and deal economics and things like that. But I would just make the point upfront that again, echoing my prepared remarks, we've seen pretty broad-based demand in different size categories and companies in the life science space that are at different stages and our ability to accommodate sort of each and every one of the RFPs or level of interest we've seen in the market reflects the very strategic decisions the company made over the last couple of years to go multi-tenant, inspect some suites in one of the buildings while holding the other two buildings available for some of the larger format tenants that would really want to customize their own space.

是的，我將讓 Rob 談談我們所看到的需求的一些細節，以及處理經濟學和類似的事情。但我想再次強調一點，呼應我準備好的發言，我們已經看到生命科學領域不同規模類別和公司處於不同階段的相當廣泛的需求，以及我們適應每種類型和類型的能力。看到的每一份RFP 或興趣水平都反映了該公司在過去幾年中做出的戰略決策，即採用多租戶模式，檢查其中一棟建築中的一些套房，同時保留其他兩棟建築適用於一些真正想要自訂自己空間的大型租戶。

So I think that the project is exceptionally well positioned to meet all of the areas of demand we're seeing in the market. And I referenced in my prepared remarks as well that it's not just life science companies, but we have had inbound interest from some more traditional office users, users as well as we have in Phase 1 of the project also.

因此，我認為該項目非常適合滿足我們在市場上看到的所有需求領域。我在準備好的發言中也提到，不僅是生命科學公司，我們也從一些較傳統的辦公室使用者、使用者以及專案第一階段的使用者中獲得了興趣。

So we're really encouraged by where things sit, but I just want to emphasize that our ability to meet that demand is a result of how this project's been positioned from a development standpoint over the last couple of years. Rob

因此，我們對目前的情況感到非常鼓舞，但我只是想強調，我們滿足這一需求的能力是過去幾年從開發角度定位該專案的結果。搶

Hi, Nick. Let me just give you a little bit of a backdrop. As Angela said, I actually think this is couldn't be a better time to be delivering in the environment we're entering into where of VC funding is improving. Demand is improving measurably.

嗨，尼克。讓我給你一些背景知識。正如安吉拉所說，我實際上認為現在是在創投正在改善的環境中提供服務的最佳時機。需求正在顯著改善。

So at the beginning of the year, we had 2 million square feet. We're now up to 2.8 million square feet of life science demand, and that's translating into activity we're having at Oyster Point and our activity, it has moved sort of the natural progression from touring activity into a more detailed, you know, paperwork, I guess I would say I'm not going to go into a lot of detail and give color, but we're very pleased with that activity that coincides with the delivery of not only of the spec lab space in October that Angela mentioned, but also the landscaping and the amenities and all the things that really distinguish our project from other projects in Oyster Point.

今年年初，我們有 200 萬平方英尺。我們現在的生命科學需求高達 280 萬平方英尺，這轉化為我們在 Oyster Point 開展的活動，我們的活動，它已經從巡演活動自然進展到更詳細的活動，你知道，文書工作，我想我會說我不會討論很多細節並給出顏色，但我們對這項活動感到非常滿意，該活動與安吉拉提到的十月份不僅交付規格實驗室空間相一致，還有景觀美化和便利設施以及所有真正將我們的項目與Oyster Point 的其他項目區分開來的東西。

So the demand we're seeing, I would say it will go more into it than Angela did some of that a little bit of it is exploration driven. But interestingly of the bulk of it is from is funding driven, meaning they've raised money or they have products nearing production and commercialization. So things are really shaping up nicely as I said.

因此，我們看到的需求，我想說，它將比安吉拉所做的更多，其中一些是探索驅動的。但有趣的是，其中大部分是由資金驅動的，這意味著他們已經籌集了資金或他們的產品接近生產和商業化。正如我所說，事情確實進展順利。

Michael Griffin, Citigroup. Michael.

邁克爾·格里芬，花旗集團。麥可.

Great, thanks. And just wanted to turn to leasing for a first question. Angela I think you referenced in your prepared remarks, you're starting to see tenants greater than 100,000 square feet enter the market.

萬分感謝。我只想轉向租賃來解決第一個問題。安吉拉，我想您在準備好的演講中提到，您開始看到超過 100,000 平方英尺的租戶進入市場。

Can you give us a sense, are these tech firms looking to commit to more space, adjust then testing the market that tried to find a good deal? Or is there may be some increased confidence that these bigger leases are coming down the pike?

您能否告訴我們，這些科技公司是否希望投入更多空間，進行調整，然後測試試圖找到划算交易的市場？或者人們對這些更大的租賃即將到來的信心會增強？

Yeah, I think it's a combination. And you're seeing you're seeing sort of broad-based demand. So some of it, yeah. Is markets like San Francisco, you're seeing some relatively new-to-market tenants with big expansion plans that are looking at bigger square footage requirements based on how their businesses have evolved over the last year or so, which is really encouraging in other markets outside of San Francisco spend much broader base and you know, from more traditional kind of office tenants, not just in the tech space, but really across the board.

是的，我認為這是一個組合。你會發現你看到了廣泛的需求。所以其中一些，是的。在像舊金山這樣的市場中，您會看到一些相對較新的市場租戶制定了大型擴張計劃，他們正在根據其業務在過去一年左右的發展來考慮更大的平方英尺需求，這在其他地區確實令人鼓舞舊金山以外的市場花費了更廣泛的基礎，你知道，來自更傳統的辦公租戶，不僅在科技領域，而且是全面的。

So I think every case is a little bit a little bit different. I know one of the tenants I'm sort of alluding to in those comments, it's really about a recognition that they need to get more people back in the office, which is great to see and encouraging to see that as a trend throughout the portfolio as well.

所以我認為每個案例都有一點不同。我認識我在這些評論中提到的一位租戶，這實際上是一種認識，他們需要讓更多的人回到辦公室，這是很高興看到的，並且令人鼓舞的是，將其視為整個投資組合的趨勢以及。

Sure. But I would say if you looked at both the Pacific Northwest and San Francisco, you're seeing a real uptick in the demand from AI companies. So in San Francisco year to date, about 15% of all transactions that have happened in the market or by AI, and that's about 400,000 feet. There's about 600,000 feet more of deals that are expected to sign that are in active kind of late stage discussions.

當然。但我想說，如果你同時關注太平洋西北地區和舊金山，你會發現人工智慧公司的需求確實在上升。今年迄今為止，舊金山的所有交易中約有 15% 是透過市場或人工智慧進行的，約 40 萬英尺。預計將簽署約 60 萬英尺的交易，這些交易正處於積極的後期討論中。

So AI is really ramping up. And when you look at Seattle is having a spillover effect in the keynote, we are talking to semi companies as our other owners. And largely that's because of the great workforce that's up in the markets that we operate in. And Seattle being probably the second most attractive market from AI technology perspective.

所以人工智慧確實正在加速發展。當你看到西雅圖在主題演講中產生外溢效應時，我們正在與半導體公司作為我們的其他所有者交談。這很大程度上是因為我們所在的市場擁有大量的勞動力。從人工智慧技術的角度來看，西雅圖可能是第二個最具吸引力的市場。

And as Angela said, some of the other users are it really is driven by the need for space and bringing people back from home to the office. And so in general, leasing activity is accelerating and it's looking good across our platform. We have a couple of markets that are a little slower, but generally, the pace is picking up.

正如安吉拉所說，其他一些用戶確實是出於對空間的需求以及將人們從家中帶回辦公室的需求而驅動的。因此，總的來說，租賃活動正在加速，並且在我們的平台上看起來不錯。我們有幾個市場的發展速度稍慢一些，但總體而言，步伐正在加快。

I mean, just following up kind of on that demand Rob, I mean, I feel like we've been hearing about that for a while, but just given the elevated vacancies, particularly in San Francisco, I mean, how much you think that demand from this subgroup is going to be able to move the needle?

我的意思是，只是在跟進這一需求，羅布，我的意思是，我覺得我們已經聽說這一點有一段時間了，但考慮到職位空缺的增加，特別是在舊金山，我的意思是，你認為這有多少這個子群體的需求是否能夠起到推動作用？

It's a good question and the numbers belie what goes on behind the scenes. But if you look at it right now, we're still tracking at 6.9 million square feet of demand in San Francisco, which is getting close to pre-pandemic levels of demand that were typically around 8 million square feet. And I can just give you color that we see and what we respond to. But right now, there are 16 tenants in the market that are over 100,000 feet in San Francisco.

這是一個很好的問題，數字掩蓋了幕後發生的事情。但如果你現在看看，我們仍在追蹤舊金山 690 萬平方英尺的需求，這已經接近疫情前的需求水平，通常約為 800 萬平方英尺。我可以告訴你我們看到的顏色以及我們的反應。但目前，舊金山面積超過10萬英尺的市場上有16個租戶。

And if you look again, I always use the pie chart. If you look at the pie chart for demand that I just described of over 50% of that is technology related and then there's a percentage of that that is AI. So I guess I would say big picture that sublease space, although you hear about Twitter and they're putting space on the market.

如果你再看一遍，我總是使用餅圖。如果你看一下我剛剛描述的需求圓餅圖，其中超過 50% 的需求與技術相關，還有一定比例的需求與人工智慧相關。所以我想我會說轉租空間的大局，儘管你聽說過 Twitter 並且他們正在將空間投放到市場上。

But sublease space that's quality space is slowly becoming less. So we're down to about 8.5 million square feet of sublease space now. But as we've said on numerous calls, this is going to take time to chip away at that, but we're pleased by the demand that we're seeing.

但轉租的優質空間正在慢慢減少。因此，我們現在的轉租空間減少到了約 850 萬平方英尺。但正如我們在多次電話中所說，這需要時間來解決這個問題，但我們對所看到的需求感到高興。

And I guess the last thing I'd say about Twitter is they still intend to keep 300 people in San Francisco. So they're only going to sublease a portion of what they do lease.

我想關於 Twitter 我要說的最後一件事是他們仍然打算將 300 名員工留在舊金山。所以他們只會轉租他們所租賃的一部分。

I mean, I think as you're hearing from Rob, there's no question that a high demand is really making an impact in San Francisco are seeing it in the broader market statistics, but also very much seeing it on vacancies we have across the portfolio or will have in the second half of the year.

我的意思是，我認為正如您從羅布那裡聽到的那樣，毫無疑問，高需求確實對舊金山產生了影響，我們在更廣泛的市場統計數據中看到了這一點，而且在我們整個投資組合中的職位空缺上也看到了這一點或下半年會有。

In addition, we're seeing some of that spillover demand, as Rob mentioned, from AI companies that are primarily based in San Francisco, looking at other markets like Seattle and to some degree, San Diego, just trying to get access to tech talent that's resident in other markets as well. So it's primarily a dynamic we're seeing in San Francisco, but it's certainly not limited to San Francisco either.

此外，正如羅布所提到的，我們看到了一些溢出需求，這些需求來自主要位於舊金山的人工智慧公司，他們正在關注西雅圖等其他市場，在某種程度上，聖地亞哥，只是試圖獲得技術人才這也存在於其他市場。因此，這主要是我們在舊金山看到的一種動態，但它當然不僅限於舊金山。

Camille Bonnel, Bank of America Merrill Lynch.

卡米爾·博內爾，美國銀行美林。

Hello, Angela, you called out how LA is recovering more slowly. So I wanted to dig in a bit further into the demand you're seeing at a sub market level, can you talk to the size of the tenant and the areas? Are you seeing signs of recovery versus weakness?

你好，安琪拉，你提到洛杉磯的恢復速度越來越慢。因此，我想進一步深入了解您在子市場層面看到的需求，可以談談租戶的規模和麵積嗎？您是否看到了復甦與疲軟的跡象？

Yeah, I mean, we're seeing decent traction kind of across the portfolio, but it has been the dynamic I referenced in my prepared remarks about the larger format tenants coming back. That dynamic isn't yet fully taking hold. And in the LA market really in any of the submarkets, we do think that some of the strongest submarkets in Los Angeles are in a sort of nearing a relatively full occupancy and hope that we're going to see some spillover benefits, not unlike what I described between Bellevue and South Lake Union in the Pacific Northwest, but seeing some spillover benefits that will that will benefit our portfolio, particularly in West LA.

是的，我的意思是，我們在整個投資組合中看到了相當大的吸引力，但這就是我在準備好的關於大型租戶回歸的評論中提到的動態。這種動力尚未完全形成。在洛杉磯市場的任何一個子市場中，我們確實認為洛杉磯一些最強大的子市場已經接近相對飽和，並希望我們能夠看到一些溢出效益，就像我在太平洋西北地區的貝爾維尤和南湖聯盟之間進行了描述，但看到了一些溢出效益，這將使我們的投資組合受益，特別是在洛杉磯西部。

Demand continues to be in a relative relatively broad-based, primarily kind of professional services and those kinds of uses, but we just haven't seen the return of some of the larger format demand like we've seen in other places. Rob?

需求仍然相對廣泛，主要是專業服務和此類用途，但我們只是沒有看到一些較大格式需求的回歸，就像我們在其他地方看到的那樣。搶？

Hi, Camille from you know, the challenge and we're still or were, you know, were closest to them is really Playa Vista, which is a different submarket and that's a larger format market in general anyway. And so you've seen some space givebacks by Meta, et cetera. But interestingly, you two, which is a meta company just extended for 10 years and 100,000 foot lease out there.

嗨，卡米爾，你知道，挑戰，我們仍然或曾經，你知道，最接近他們的是普拉亞維斯塔，這是一個不同的子市場，無論如何，這是一個更大的格式市場。所以你已經看到了 Meta 等的一些太空回饋。但有趣的是，你們兩個，這是一家元公司，剛剛延長了 10 年和 100,000 英尺的租約。

So as Angela said it's sort of, you know, nothing is static, right? It's changing within the submarkets and the offerings we have in our portfolio, our suited to smaller users and the bulk of users right now in the market are around 20,000 feet. If you look at where our Westside Media Center project is, for example, and then Hollywood, where we have assets and vacancy also has had an uptick actually in activity.

正如安吉拉所說，你知道，沒有什麼是靜態的，對吧？子市場和我們產品組合中的產品正在發生變化，我們適合較小的用戶，目前市場上的大部分用戶的距離約為 20,000 英尺。例如，如果你看看我們的西區媒體中心項目所在的地方，那麼我們擁有資產和空置的好萊塢的活動實際上也有所增加。

It's just sort of the general comment I'd make is that, you know, activity is picking up. The pace of transactions is still slower than we'd like.

我的一般評論是，你知道，活動正在增加。交易的速度仍然比我們希望的要慢。

And in some of your markets, we've been seeing leasing activity from the growing tech companies. I'm being focused on sublease space. So I wanted to better understand how much space within Kilroy portfolio is being sublet versus a year ago. And how much of your pipeline is backfilling true vacant space versus reselling already occupied?

在你們的一些市場中，我們已經看到不斷成長的科技公司的租賃活動。我專注於轉租空間。因此，我想更了解與一年前相比，基爾羅伊投資組合中有多少空間被轉租。您的管道中有多少是在回填真正的空置空間，而不是轉售已佔用的空間？

Hey, Camille, Eliot here. As we sit here today, it's about 11% or 12% of Kilroy's portfolios available for sublease. If we look back a year ago, maybe that was 10%-ish. So it's moved a little, but not all that meaningful. And then we've tried to start giving breakdown in our press release of how our leasing breaks out between spaces vacant space that's currently occupied.

嘿，卡米爾，艾略特在這裡。當我們今天坐在這裡時，基爾羅伊的投資組合中約有 11% 或 12% 可供轉租。如果我們回顧一年前，也許這個數字只有 10% 左右。所以它有點移動，但意義不大。然後，我們嘗試開始在新聞稿中詳細說明我們的租賃如何在目前佔用的空置空間之間進行劃分。

So for the quarter, we have a we had 122,000 square feet of the 235 that was new leasing on previously vacant space, 55 on new leasing that's occupied and then 58 of renewal.

因此，就本季而言，我們有 122,000 平方英尺，其中 235 平方英尺是先前空置空間的新租賃，55 平方英尺是已佔用的新租賃，然後是續租的 58 平方英尺。

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

Great, thanks. Just to follow up on the personnel announcements. First, can you talk about the process behind selecting Jeffrey for the CFO position?

萬分感謝。只是為了跟進人事公告。首先，您能談談選擇 Jeffrey 擔任 CFO 職位的過程嗎？

Did you run a broader process? Or was this just a prior relationship that kind of stuck out as a good fit. And then, you know, after these changes, how should we be thinking about the current senior management team that's in place and the structure of the management team.

您是否運行了更廣泛的流程？或者這只是之前的一段關係，而且很適合。然後，你知道，在這些變更之後，我們應該如何考慮現有的高階管理團隊以及管理團隊的結構。

Angela, I guess, have we reached what you see as an optimal theme now? Or are there any other contemplated or considered possible additions or changes we should think about going forward?

安琪拉，我想，我們現在已經達到您認為的最佳主題了嗎？或者我們未來是否應該考慮任何其他預期或考慮的可能的添加或更改？

Yeah. Thanks, Blaine. I appreciate it. I would say as it relates to the CFO, search and process, I've spent a lot of time over the last six months, really just getting my arms around this organization and what I felt like it needed. And part of that identification was recognizing the need for full-time focus on the Chief Investment Officer side, which brings me up to think specifically about what kinds of skills and what background I thought would be best suited for the CFO role here in particular, given where we are from a business perspective for where we are in terms of the platform perspective as well and some changes I'd like to see over the next few years in terms of business process improvements and continued investment in technology and data analytics and things like that.

是的。謝謝，布萊恩。我很感激。我想說，因為這與財務長、搜尋和流程有關，過去六個月我花了很多時間，實際上只是了解這個組織以及我認為它需要什麼。這一識別的一部分是認識到需要全職關注首席投資官方面，這讓我開始具體思考我認為最適合首席財務官角色的技能和背景，特別是，考慮到我們從業務角度、平台角度以及我們在平台角度的情況，以及我希望在未來幾年看到業務流程改進以及對技術和數據分析等方面的持續投資方面的一些變化像那樣。

And I have worked with Jeffrey at two different companies over time. I know his skill set very well. I think he is going to be a great fit, not just from, you know, exactly sort of the work that I see the CFO role doing over the next few years. But certainly from a cultural perspective, I think is going to be a great fit with the rest of this executive team and with the accounting and finance functions that who work who work most closely with.

隨著時間的推移，我和傑弗裡在兩家不同的公司工作過。我非常了解他的技能。我認為他將非常適合，而不僅僅是我認為財務長職位在未來幾年所做的工作。但當然從文化的角度來看，我認為這將與這個執行團隊的其他成員以及合作最密切的會計和財務職能部門非常契合。

So that was kind of the thought process there, like I tried to really underscore this in my prepared remarks. I've been really blown away by the talent and professionalism of this entire team. And as we've navigated, you know, a dynamic business environment, but also this CEO transition process, the willingness of everybody to really embrace change and help me get up to speed and all of that.

這就是那裡的思考過程，就像我試圖在準備好的發言中真正強調這一點一樣。我對整個團隊的才華和專業感到非常震驚。正如我們所經歷的，你知道，一個充滿活力的商業環境，還有這個執行長的過渡過程，每個人都願意真正擁抱變革並幫助我加快速度等等。

So I'm very pleased with where we sit today from an executive leadership perspective and ready to continue to focus on that opportunities and challenges in front of us.

因此，從行政領導的角度來看，我對我們今天所處的位置感到非常滿意，並準備好繼續關注我們面前的機會和挑戰。

Okay, great. That's really helpful. I'm switching gears to capital allocation. Can you guys just give an update on your thoughts on share repurchases, just given where the stock is trading and whether they might be an attractive kind of alternative use of funds as you guys remain on the side lines with respect to acquisitions and development?

好的，太好了。這真的很有幫助。我正在轉向資本配置。你們能否介紹一下你們對股票回購的最新想法，考慮到股票的交易地點，以及它們是否可能是一種有吸引力的資金替代用途，因為你們對收購和開發仍持觀望態度？

Yeah. I mean, I'd say a few things. You know, either you might have seen I think maybe it was not long after I joined, we refreshed both our buyback program and our ATM program to make sure that we have all tools available to us as we navigate what will continue to be a pretty dynamic capital markets environment. So we're certainly able and prepared to do that to the extent it makes sense.

是的。我的意思是，我想說幾句話。你知道，你可能已經看到，我想也許是在我加入後不久，我們更新了我們的回購計劃和 ATM 計劃，以確保我們擁有所有可用的工具，因為我們將繼續保持美好的未來。活力的資本市場環境。因此，我們當然有能力並準備好在有意義的範圍內做到這一點。

I don't think you should expect us to see us execute on a buyback program in a way that takes leverage higher, right? So it would only be with an identified source of proceeds, and we'd have to be looking around at all of the investment alternatives that are available to us at that point in time.

我認為您不應該期望我們看到我們以提高槓桿率的方式執行回購計劃，對吧？因此，這只需要確定的收益來源，我們必須及時尋找我們可用的所有投資選擇。

As I mentioned, I do think in our through the rationalization of the future land pipeline that we will have some nice proceeds that we'll want to reinvest in the most economically attractive way. But as I tried to underscore in my prepared remarks, it's going to take us some time to realize those proceeds in order to maximize value on each of those parcels.

正如我所提到的，我確實認為透過未來土地管道的合理化，我們將獲得一些不錯的收益，我們希望以最具經濟吸引力的方式進行再投資。但正如我在準備好的發言中試圖強調的那樣，我們需要一些時間才能實現這些收益，以便使每個地塊的價值最大化。

So I think at that point in time, when we get there and we have proceeds in, you know, Elliot and I will be working through that conversation about what are we seeing in the transaction market, whereas the stock at that point in time and what's the best alternative when we're in that position and you want to add, Eliott?

因此，我認為在那個時間點，當我們到達那裡並且我們有收益時，你知道，埃利奧特和我將通過對話討論我們在交易市場中看到的情況，而當時的股票和當我們處於這個位置並且你想補充時，最好的選擇是什麼，艾略特？

I think that pretty well covers it. I mean, near term, we kind of highlighted what our priorities are for capital, which is to ensure that the development pipeline is fully funded. And then I think beyond that, it's making sure that the balance sheet is in the right shape so that when we are ready to do something we have all of our options in front of us.

我認為這很好地涵蓋了它。我的意思是，短期內，我們強調了我們的資本優先事項，即確保開發管道得到充分資助。然後我認為除此之外，還要確保資產負債表處於正確的狀態，以便當我們準備好做某事時，我們擁有所有的選擇。

Steve Sakwa, Evercore ISI.

Steve Sakwa，Evercore ISI。

Hi, good morning. Angela, just sticking on the kind of new hires, Michael Schmidt on the Leasing side to come in and complement. Rob, does he have background in Life Science leasing, is it more office leasing? Just wanted to kind of get your feel on kind of the team and the depth of the Life Science leasing and how that could help by in an improving leasing environment?

早安.安吉拉（Angela），只是堅持新員工的類型，租賃方面的邁克爾·施密特（Michael Schmidt）進來補充。Rob，他有生命科學租賃的背景嗎？只是想了解您對生命科學租賃團隊的類型和深度的感受，以及這對改善租賃環境有何幫助？

Yeah. I mean, as you can appreciate in the Bay Area, overall is a very big market for us. We have somebody on the team there has done a great job at servicing that market as well. But Michael Schmidt now coming in, we'll take a key role in continuing to build out our practice overall in the San Francisco market and Bay Area. And I think it's going to be a really great addition to the team and somebody that that Rob can get a lot of leverage from in that market.

是的。我的意思是，正如您所見，灣區總體而言對我們來說是一個非常大的市場。我們團隊中的某個人在服務該市場方面也做得很好。但邁克爾·施密特 (Michael Schmidt) 現在上任，我們將在繼續發展我們在舊金山市場和灣區的整體業務方面發揮關鍵作用。我認為這對團隊來說是一個非常好的補充，羅伯可以從這個市場中獲得很大的影響力。

I do think as we probably talked about before, we're continuing to evaluate our needs across of our broader lease platform. And all of my comments around making sure that we have the right resources in the right places, really underscoring that. We have a lot of challenges and opportunities in front of us from a leasing side and I want to make sure that we have all of the resources we need for that function to really be successful at continuing to capture outsized market share going forward.

我確實認為，正如我們之前可能討論過的那樣，我們正在繼續評估更廣泛的租賃平台的需求。我所有的評論都是圍繞著確保我們在正確的地方擁有正確的資源，這真正強調了這一點。租賃方面我們面臨許多挑戰和機遇，我想確保我們擁有該職能所需的所有資源，以便真正成功地繼續佔領未來巨大的市場份額。

So you know, stay tuned. There might be some additional hires on the leasing side to just support our efforts across the portfolio. I think it's a very reasonable question to point out life science and to ask, if you'll see some additions there, I'd prefer to wait to announce anything when we have somebody teed up and but we're continuing to evaluate our needs in all parts of the business.

所以你知道的，請繼續關注。租賃方面可能會增加一些員工，以支持我們在整個投資組合中的努力。我認為這是一個非常合理的問題，指出生命科學並詢問，如果您會在那裡看到一些補充，我寧願等到我們有人準備好後再宣布任何事情，但我們正在繼續評估我們的需求在業務的各個部分。

Okay. And then secondly, on kind of come back to the LA market, I guess just given all the challenges that we're seeing across all the streaming platforms and kind of the cable companies and just the issues all going on in kind of the media sector. I'm just wondering how you're thinking about the LE footprint in total and whether you are kind of moving maybe some more of those assets and submarkets potentially into the disposition bucket?

好的。其次，回到洛杉磯市場，我想考慮到我們在所有串流媒體平台和有線電視公司中看到的所有挑戰以及媒體行業中正在發生的所有問題。我只是想知道您如何看待 LE 的整體足跡以及您是否會將更多這些資產和子市場轉移到處置桶中？

It's a good question. And there's I mean, obviously, you know, particularly in the sectors you reference, there are a lot of cross currents right now, and it's certainly a place we're spending a lot of time and focus to really make sure we're on top of an understanding what's happening, particularly in our Hollywood portfolio.

這是一個好問題。我的意思是，顯然，你知道，特別是在你提到的領域，現在存在著很多交叉流，這肯定是我們花費大量時間和精力來真正確保我們在的地方最重要的是了解正在發生的事情，特別是在我們的好萊塢投資組合中。

I just underscore how high quality our assets are in Hollywood and how well leased. They are and how you know how the credit profile, et cetera, of what we have in that market. So we feel pretty good about it right now.

我只是強調我們在好萊塢的資產品質有多高，租賃情況有多好。它們是什麼，以及您如何知道我們在該市場上擁有的信用狀況等。所以我們現在感覺很好。

Overall, I do think you know how it kind of excuse me, LA in general, is a very big market with lots of very distinct submarkets. And I think as we consider our footprint in LA longer-term, it's very reasonable to ask if there are is that there is some submarket positioning that we'll continue to think through as we as we move forward. But the dynamics you mentioned are certainly ones that we're taking into account. We do feel good about the portfolio we have that's exposed to those kind of sectors today.

總的來說，我確實認為您知道，對不起，總體而言，洛杉磯是一個非常大的市場，有很多非常獨特的子市場。我認為，當我們長期考慮我們在洛杉磯的足跡時，詢問是否有一些子市場定位是非常合理的，我們將在前進的過程中繼續考慮這些定位。但你提到的動態確實是我們正在考慮的因素。我們確實對今天涉足此類行業的投資組合感到滿意。

Upal Rana, KeyCorp.

烏帕爾·拉納 (Upal Rana)，KeyCorp。

Great, thanks for taking the question, Angela, on the land parcel rationalization that you mentioned on your prepared remarks, but can you give us some color on what some of those parcels are and what's the best use case and some of them now sits not office.

很好，安吉拉，感謝您就您在準備好的發言中提到的地塊合理化問題提出問題，但是您能否給我們一些關於其中一些地塊是什麼以及什麼是最佳用例的信息，其中一些現在不適用辦公室。

And would you consider a structuring a deal where you may participate in any of those land parcels?

您是否會考慮建立一項您可以參與其中任何地塊的交易？

Yeah, I think those are all good questions. I'm going to defer conversations that specific parcels until we're closer to execution and we can be more specific about exactly what the plans are there. But as I think you've heard me say both in my prepared remarks and in Q&A here, I'm very excited about our future prospects at KRC.

是的，我認為這些都是好問題。我將推遲有關特定地塊的對話，直到我們接近執行，並且我們可以更具體地了解計劃的具體內容。但正如我想您已經在我準備好的演講和問答中聽到我所說的那樣，我對 KRC 的未來前景感到非常興奮。

So we can kind of put that to the side, I think in our ability to continue to build out KRC over time in a way that's driven by tenant demand and you know where we take appropriate levels of risk as we continue to phase out, that project will make a ton of sense for the company. And I'm really excited about our ability to do it. It's only going to enhance the value of what we have in Phase 1 and Phase 2 as well on other parcels across that future land bank.

因此，我們可以把它放在一邊，我認為，隨著時間的推移，我們有能力以一種由租戶需求驅動的方式繼續建造KRC，而且你知道，當我們繼續逐步淘汰時，我們在哪裡採取適當的風險水平，專案對公司來說意義重大。我對我們做到這一點的能力感到非常興奮。這只會提高我們在第一階段和第二階段以及未來土地儲備中其他地塊上的價值。

We've got a range of sizes in the future land bank, and they're clearly parcels in there that were bought at one point with the assumption that it would be office or life science projects where the market's just shifted or submarket dynamics have just shifted.

我們在未來的土地儲備中擁有一系列規模，它們顯然是在某一時刻購買的地塊，假設它將是市場剛剛發生變化或子市場動態剛剛發生的辦公室或生命科學項目。

And we now think highest and best use is likely something other than office and life science I would say primarily those other uses are going to be residential or residential related, though there are there is maybe one parcel in that future land bank where we're considering more of an alternative use and then residential.

我們現在認為最高和最佳用途可能是辦公室和生命科學以外的東西，我想說主要是那些其他用途將與住宅或住宅相關，儘管在我們未來的土地儲備中可能有一個地塊更多地考慮替代用途，然後是住宅。

So I just again underscore what I said in my prepared remarks, which is that I'm really very encouraged by the level of activity and engagement we've seen on those parcels. And I think it's going to represent a really attractive source of capital for the company to continue to participate in the acquisition market going forward.

因此，我再次強調我在準備好的演講中所說的話，即我們在這些包裹上看到的活動和參與程度讓我感到非常鼓舞。我認為這將成為公司繼續參與收購市場的真正有吸引力的資本來源。

We look at all of our other capital allocation alternatives.

我們研究了所有其他資本配置方案。

All right. Great. Thank you, that was helpful. And then can you give us an update on your known move-outs and backfilling progress.

好的。偉大的。謝謝，這很有幫助。然後您能否向我們提供有關您已知的搬出和回填進度的最新資訊。

There's still a decent chunk in the back half and wanted to get a better sense on visibility of occupancy into year end?

後半段還有相當多的時間，想要更了解年底的入住率？

Yeah, I'll start with the move outs and then, Rob, if you want to give any market commentary on them. But we touched on three in the prepared remarks that total about 350,000 square feet. That's about 60%-plus of what we've got expiring over the balance of the year.

是的，我將從遷出開始，然後，羅布，如果你想對它們發表任何市場評論。但我們在準備好的演講中談到了三處，總面積約為 35 萬平方英尺。這大約是我們今年剩餘時間內到期的產品的 60% 以上。

We have some tenders, three, we have Salesforce in Seattle and we have already had some activity there. And some of that space is actually already backfilled, that's going to happen in the third quarter. And then in the fourth quarter, Microsoft has some space in the Bay Area, about 75,000 square feet. And then Capital One has a little over 150,000 square feet also in Cisco and Rob, if you want to.

我們有一些招標，三個，我們在西雅圖有 Salesforce，我們已經在那裡進行了一些活動。其中一些空間實際上已經回填，這將在第三季度發生。然後在第四季度，微軟在灣區擁有了一些空間，大約 75,000 平方英尺。如果你願意的話，第一資本在 Cisco 和 Rob 也擁有超過 150,000 平方英尺的面積。

Yeah, I really don't have much more to add to what Eliott said other than we've been touring those known vacancies already, so more to come.

是的，除了我們已經巡視過那些已知的空缺職位之外，我真的沒有什麼可以補充艾略特所說的，所以還會有更多。

Caitlin Burrows, Goldman Sachs.

凱特琳·布羅斯，高盛。

Hi there. Maybe a quick one on the on. You guys ended the quarter with over $800 million of cash. It sounds like the plan for that is to fund development and pay down the December bond maturity. But I guess at what point would you look to re-access the unsecured bond market or do you expect this to be more of like a permanent debt paydown?

你好呀。也許很快就可以了。本季結束時，你們擁有超過 8 億美元的現金。聽起來這個計劃是為開發提供資金並償還 12 月到期的債券。但我猜你會在什麼時候考慮重新進入無擔保債券市場，或者你認為這更像是永久性的債務償還？

So Caitlin, I think it's a good question. And you know, from our perspective, the thought process is not just what's going on in the unsecured bond market, which has obviously gotten a little bit more attractive over the recent weeks and months.

凱特琳，我認為這是一個很好的問題。你知道，從我們的角度來看，思考過程不僅僅是無擔保債券市場正在發生的事情，在最近幾週和幾個月裡，無擔保債券市場顯然變得更具吸引力。

But what would the use of proceeds be as well? And so we're in the fortunate position where after our December 2024 maturity, we don't really have anything until October of 2025. We will have to address that. We have our track record has been that we are proactively getting ahead of those maturities.

但收益的用途又是什麼呢？因此，我們處於幸運的位置，在 2024 年 12 月成熟之後，直到 2025 年 10 月我們才真正擁有任何東西。我們必須解決這個問題。我們的記錄是，我們正在積極主動地提前實現這些目標。

So we think that if we can see an opportunistic time to raise some capital, and that's the logical use of that capital. But we're also going to keep our eyes open for other uses, as Angela touched on, be that acquisition opportunities or whatnot. We as we're doing all of that, we need to be very mindful that the leverage is not ticking up does. So it will go into the bond market, the most likely uses to repay future debt.

因此，我們認為，如果我們能找到籌集一些資本的機會，那就是該資本的合理運用。但我們也會密切關注其他用途，正如安吉拉所談到的那樣，無論是收購機會還是其他什麼。當我們做所有這些事情時，我們需要非常注意槓桿沒有上升。因此，它將進入債券市場，最有可能用於償還未來債務。

Got it. Okay. And then maybe just back to the leasing side, seemed like the second quarter activity was relatively softer, but then July was strong. So it also sounds like the larger deal market is not necessarily as strong. So that would suggest a more smaller deals. But I guess going forward, kind of how's the leasing pipeline and outlook for the remainder of 2024 looking and also that mix, small versus large users? Thanks.

知道了。好的。然後也許回到租賃方面，第二季的活動似乎相對疲軟，但隨後 7 月表現強勁。因此，聽起來規模較大的交易市場不一定那麼強勁。因此，這將意味著更小的交易。但我想，展望未來，2024 年剩餘時間的租賃管道和前景以及小型用戶與大型用戶的混合情況如何？謝謝。

Hi, Caitlin. As you as you kind of probably inferred from my comments, I mean, the pipeline is looking good. I mean, we've already since the quarter the third quarter, we've signed 183,000 square feet of leases, and we have more in the pipeline in various stages of discussions.

嗨，凱特琳。正如您可能從我的評論中推斷出的那樣，我的意思是，管道看起來不錯。我的意思是，自第三季度以來，我們已經簽署了 183,000 平方英尺的租賃合同，並且在不同階段的討論中我們還有更多的租賃合同。

So it's feeling like Q3 and Q4 and finished strong. And that is consistent with what we're seeing in the markets that we operate in, where demand continues to increase and expectations are that some small and larger transactions are going to happen.

所以感覺就像第三季和第四季一樣，並且表現強勁。這與我們在我們經營的市場中看到的情況是一致的，那裡的需求持續增加，並且預期將會發生一些小型和大型交易。

And I wouldn't say that it's all small tenant activity. We had some larger tenants as Angela alluded to earlier that were top tenants that we're talking to. So you're just not seeing the size and volume of large tenants that you saw in 2017 or '18. But we're also coming out of something into an improving environment.

我不會說這都是小型租戶活動。正如安吉拉之前提到的，我們有一些較大的租戶，他們是我們正在交談的頂級租戶。所以你只是沒有看到你在 2017 年或 18 年看到的大租戶的規模和數量。但我們也正在擺脫困境，進入一個不斷改善的環境。

Yeah, I think that's exactly right. As I said in my prepared remarks, as the first time, we've really seen recently a sort of reacceleration in demand from users that are looking for over 100,000 feet. So not in some of the megadeals maybe, but certainly a strong improvement in the average deal size in the forward pipeline that we think is really encouraging. And that's true both on the renewal side and on the straight new leasing side as well.

是的，我認為這是完全正確的。正如我在準備好的演講中所說，我們最近確實第一次看到，尋求超過 100,000 英尺高度的用戶的需求再次加速。因此，也許不是在一些大型交易中，但我們認為未來管道中平均交易規模的強勁改善確實令人鼓舞。在續約方面和直接新租賃方面都是如此。

So any comments in Q&A in about a lack of return of the larger deals was sort of more submarket or market specific, particularly in Los Angeles. But across the entirety of the portfolio, we're definitely seeing things move in that direction.

因此，問答中有關大型交易缺乏回報的任何評論都更加針對子市場或市場，尤其是在洛杉磯。但在整個投資組合中，我們肯定會看到事情朝著這個方向發展。

Dylan Burzinski, Green Street Advisors.

迪倫·布爾津斯基 (Dylan Burzinski)，格林街顧問公司。

Thanks for just the question. Angela, I just wanted to go back to your comments on seeing assets are higher quality assets coming to market at a faster pace? I mean, are there certain markets where you're seeing a larger quantity of assets coming to market.

謝謝你剛才的問題。安吉拉，我只是想回到你的評論，看到資產是更高品質的資產以更快的速度進入市場？我的意思是，是否在某些市場上您會看到大量資產進入市場。

And then I guess as a follow-up to that, is your sense that these sellers are having more realistic expectations versus where we heard of assets coming to market, say last year, 18 months ago.

然後我想，作為後續行動，你會感覺到這些賣家的預期比我們聽說的資產進入市場的情況（例如去年，18 個月前）更現實。

I think that's a really important question, Dylan. I think in terms of just where we're seeing the activity and the higher quality assets I think it has been relatively distributed across markets. We've evaluated things and I think almost all of our markets that we would categorize in a higher quality than what we've seen come out over the last couple of years.

我認為這是一個非常重要的問題，迪倫。我認為就我們所看到的活動和更高品質的資產而言，我認為它在各個市場中相對分佈。我們已經對事情進行了評估，我認為我們對幾乎所有市場的分類品質都比我們過去幾年所看到的要高。

So that part of the equation, that leaves just pretty broad based. But based on what I said earlier, we're waiting to execute for an environment where we feel pricing does reflect the overall risk environment and our cost of capital.

所以等式的這一部分留下了相當廣泛的基礎。但根據我之前所說的，我們正在等待一個我們認為定價確實反映了整體風險環境和我們的資本成本的環境。

And we certainly haven't seen things get all the way there, which is why you just haven't seen executions from us yet, but we think that in this environment where we are seeing more market testing from potential sellers and in a more market testing of assets that would at least be a fit for us from a quality and long-term growth standpoint is very encouraging.

當然，我們還沒有看到事情進展順利，這就是為什麼你還沒有看到我們執行的原因，但我們認為，在這種環境下，我們看到潛在賣家和更多市場進行更多的市場測試從品質和長期成長的角度來看，對至少適合我們的資產進行測試是非常令人鼓舞的。

And we think in out more market testing will lead to the compression of that bid-ask spread as we move forward.

我們認為，隨著我們的前進，更多的市場測試將導致買賣價差的壓縮。

I'd just add to that, that when you think about some of these owners, unity lacked liquidity for a few years. And so now that they're getting to a point that it's been a while they may have other needs in terms of how they allocate their portfolios, it's logical that they're going to come out and sort of be a little bit more open-minded when testing the market. And so we think that this is a trend that that can continue.

我想補充一點，當你想到其中一些所有者時，你會發現團結在幾年內缺乏流動性。因此，現在他們已經有一段時間了，他們在如何分配投資組合方面可能有其他需求，他們會站出來並採取更加開放的態度是合乎邏輯的——測試市場時的心態。因此我們認為這種趨勢可以持續下去。

That's helpful commentary. And then one more follow-up, if I could. I guess as you look at the portfolio concentration today, are there certain markets that you're more interested in growing over time?

這是很有幫助的評論。如果可以的話，然後再進行一次後續行動。我想，當您審視今天的投資組合集中時，是否有某些市場您對隨著時間的推移而成長更感興趣？

You know, I think for most of our markets, it's a question of really understanding how submarkets are sort of evolving and where we want to position ourselves from a submarket perspective, we certainly want to continue to grow the Austin portfolio.

你知道，我認為對於我們的大多數市場來說，這是一個真正了解子市場如何演變的問題，以及我們希望從子市場的角度定位自己的位置，我們當然希望繼續擴大奧斯汀的投資組合。

As I think you're well aware, we we've got one very high quality asset in the Austin CBD and a development site near the domain, but certainly hope we can continue to expand that portfolio over time and in the right way.

我想您很清楚，我們在奧斯汀中央商務區擁有一項非常優質的資產，並在該領域附近擁有一個開發場地，但當然希望我們能夠隨著時間的推移以正確的方式繼續擴大該投資組合。

And outside of that, the only other comment I've made before and I'll make again here is that I think as we look at the portfolio, one of the other conversations we're having internally is just about relative market positioning as well.

除此之外，我之前發表過的唯一其他評論（我將在這裡再次發表）是，我認為當我們審視投資組合時，我們內部進行的其他對話之一也只是關於相對市場定位。

I think over time, you will see our relative positioning to the Bay Area come down. There's probably a little bit of portfolio pruning there, but my broader hope is that and really, we're just growing the denominator in other markets like Austin and San Diego and the Pacific Northwest, et cetera, rather than significant sales out of the San Francisco market, we're very excited about what we're seeing in terms of the stabilization and recovery in San Francisco.

我認為隨著時間的推移，你會看到我們與灣區的相對定位下降。那裡可能會有一些投資組合修剪，但我更廣泛的希望是，實際上，我們只是在其他市場（例如奧斯汀、聖地亞哥和太平洋西北地區等）增加分母，而不是在聖地亞哥以外增加大量銷售舊金山市場，我們對舊金山的穩定和復甦感到非常興奮。

And we certainly don't need to rush that relative exposure question, given where we sit from a market standpoint today. But I think long term that's something you should you should expect to see us move in that direction methodically.

考慮到我們今天從市場的角度來看，我們當然不需要急於提出相對暴露的問題。但我認為從長遠來看，你應該期待看到我們有條不紊地朝這個方向前進。

Peter Abramowitz, Jefferies.

彼得·阿布拉莫維茨，杰弗里斯。

Thank you very much and thanks for taking the questions. Or could you just talk about DermTech? I know they filed for Chapter 11 back in June. Just curious how that's being treated and whether in terms of your FFO guide or how it's incorporating to your occupancy guide? And are they still in based in San Diego?

非常感謝您並感謝您提出問題。或者您能談談 DermTech 嗎？我知道他們早在 6 月就申請了第 11 章。只是好奇這是如何處理的，以及您的 FFO 指南還是如何將其納入您的入住指南？他們還在聖地牙哥嗎？

I'm happy to tell you that they are still in that space. They are still in occupancy. They have paid rent in July as far as what's in the guidance, there's a range of outcomes. But you can assume that as we typically do, we're pretty conservative with how we think about these things.

我很高興地告訴你，他們仍然在那個空間裡。他們仍在入住。他們已經按照指導方針支付了七月份的租金，有一系列的結果。但你可以假設，正如我們通常所做的那樣，我們對這些事情的看法相當保守。

Okay. That's helpful. And then in terms of capital allocation, can you just talk about potentially other opportunities in other parts of the capital stack and whether it be the [mezzanine] position, things like that. Is that something you've considered something that seems attractive to you on a risk-adjusted basis? And if so, kind of what you're underwriting from a return standpoint?

好的。這很有幫助。然後在資本配置方面，您能否談談資本堆疊其他部分的潛在其他機會，以及是否是[夾層]位置，諸如此類的事情。在風險調整的基礎上，您是否認為這對您有吸引力？如果是這樣，從回報的角度來看，您承保的是什麼？

Yeah. So and we've touched on this in prior quarters. It's something that we haven't historically done, but we are open minded about doing. I think from our perspective, we know that our expertise is he's buying operating leasing real estate. It's not lending on real estate.

是的。我們在前幾個季度已經談過這個問題。這是我們歷史上從未做過的事情，但我們對此持開放態度。我認為從我們的角度來看，我們知道我們的專長是他正在購買經營租賃房地產。這不是房地產貸款。

So to the extent that we are going to go up higher in the capital stack, we want there to be a clear path to ownership and not just being in the lending business and some new kind of rep trying to replicate those as loans come due. That isn't our expertise. And but we are going to try and be creative and open-minded and look for ways to create value.

因此，就我們要在資本堆疊中上升的程度而言，我們希望有一條清晰的所有權路徑，而不僅僅是從事貸款業務，以及一些新的代表試圖在貸款到期時複製這些業務。那不是我們的專長。但我們將嘗試發揮創意和開放態度，尋找創造價值的方法。

Michael Carroll, RBC.

麥可卡羅爾，加拿大皇家銀行。

Yeah, thanks. I just wanted to follow up on the potential monetization of some of the land parcels. Angela, I know that you said that there might be some alternative uses for the sites that you have. Can we assume that you're actively entitling the site, the fit, those better uses, I think you said ready for most of them is that's going on right now? And how long of a process does that typically take?

是的，謝謝。我只是想跟進一些地塊的潛在貨幣化情況。安吉拉，我知道您說過您擁有的網站可能有一些其他用途。我們是否可以假設您正在積極授權該網站、適合性、那些更好的用途，我想您說過，現在正在為其中的大多數做好準備？這個過程通常需要多長時間？

Yeah, in some of these cases, we are going through that process in working with people who might be eventual buyers for those assets to make sure that the right things are getting entitled as well. So we're evaluating that and making sure things are moving in the right direction there. As I said, these things can take time and the amount of time it's going to take is going to be different by market and submarket.

是的，在某些情況下，我們正在與可能成為這些資產的最終買家的人合作，以確保正確的東西也能獲得權利。因此，我們正在對此進行評估，並確保事情朝著正確的方向發展。正如我所說，這些事情可能需要時間，而且所需的時間因市場和子市場而異。

So it's not easy to generalize. I think you know, a couple of parcels can move a little bit more quickly than others. But even in the best case scenario, it will take, you know, a not insignificant amount of time to renter for something beyond what they're currently entitled for.

所以不容易一概而論。我想你知道，幾個包裹的移動速度可能比其他包裹快一點。但即使在最好的情況下，你也知道，租用超出他們目前有權租用的東西也需要相當長的時間。

Okay. And should we assume that you probably don't want to sell these parcels until you actually get them entitled because just want to maximize your value and make sure that everything is suitable for the next developer?

好的。我們是否應該假設您可能不想出售這些地塊，直到您真正獲得這些地塊的權利，因為只是想最大化您的價值並確保一切都適合下一個開發商？

Yeah, I mean, I think it's just a question of how do we maximize value on the parcels, right? And so I think Eliott and his team have run through a really thoughtful process of evaluating each of these scenarios, testing the market and understanding if we sell them today, what's value if we hold them a little bit longer and entitle, what's the value then? And is there a wide enough gap between those two numbers to make continuing to carry the assets through re entitlement attractive to us.

是的，我的意思是，我認為這只是我們如何最大化地塊價值的問題，對嗎？因此，我認為艾略特和他的團隊已經經歷了一個非常深思熟慮的過程，評估每種情況，測試市場並了解如果我們今天出售它們，如果我們持有它們更長一點並有權，那麼價值是什麼？這兩個數字之間是否存在足夠大的差距，足以讓我們繼續透過重新授權來持有資產。

And I think in effectively all scenarios, we do think that's the case that the best outcome for shareholders for us to hold them to re-enter settlement as long as we're confident that we can reinstate them in the correct way to maximize value for the end buyer sets the better outcome from just a valuation standpoint.

我認為，在所有情況下，我們確實認為，只要我們有信心以正確的方式恢復股東的利益，讓他們重新進入和解，這對股東來說是最好的結果，以實現價值最大化。家僅從估值的角度出發就設定了更好的結果。

But it really is just a question of understanding each individual situation and understand you are testing the market a little bit and understanding where values lie and making the right economic decision.

但這實際上只是一個了解每個人的情況並了解您正在測試市場並了解價值所在並做出正確的經濟決策的問題。

John P. Kim with BMO.

BMO 的約翰·P·金 (John P. Kim)。

Thank you. I wanted to ask about the $2.5 million lease termination fee this quarter was factored into your guidance previously or was that new a new event? And also any color on either the tenants or the market that it's located in?

謝謝。我想問一下，本季 250 萬美元的租賃終止費是否已計入您先前的指導中，或者這是一個新事件？租戶或所在市場也有什麼顏色嗎？

Hey, John. So this was the tenant in Bellevue. It was not factored into our guidance previously, it has a an impact on same-store because this is a cash lease termination income. It has a negligible impact on FFO. So when you think about how we talked about the drivers earlier, we made that distinction of one of the drivers of same-store growth included some fee income, but that was not a driver in FFO growth and as far as the market itself, as we've touched on, one of our stronger markets. And so it's one that we feel pretty good about the activity that we're seeing there.

嘿，約翰。這是貝爾維尤的房客。它之前沒有納入我們的指導，它對同店有影響，因為這是現金租賃終止收入。它對 FFO 的影響可以忽略不計。因此，當你思考我們之前如何討論驅動因素時，我們區分了同店成長的驅動因素之一包括一些費用收入，但這並不是 FFO 成長的驅動因素，就市場本身而言，我們已經觸及了我們更強勁的市場之一。因此，我們對在那裡看到的活動感覺非常好。

Okay. And then just wanted to follow up on the SAP renewal and how much of a downsize that is and also on the answer on known move outs, like if you could give any known move-outs? Where do you expect in 2025?

好的。然後只是想跟進 SAP 續約情況以及縮小規模的情況，以及已知搬出的答案，例如您是否可以提供任何已知的搬出？您對 2025 年有何預期？

Hey, John, it's Rob. So it is a downsize. It's probably over half the space, but we've got I don't want to get too much color to you, but it's we've got activity on the space. And Bellevue, as Elliot just alluded to, is one of the strongest markets in our portfolio.

嘿，約翰，我是羅布。所以這是縮小規模。它可能超過了一半的空間，但我們已經有我不想給你太多的色彩，但我們已經在這個空間上進行了活動。正如艾利歐特剛才提到的，貝爾維尤是我們投資組合中最強勁的市場之一。

One of ours and one of our strongest assets. So we felt good about re-leasing potential for that space.

我們的資產之一，也是我們最強大的資產之一。因此，我們對重新租賃該空間的潛力感到滿意。

And there is a subtenant in place and a large portion of that space, which does help as you think about the risk profile there as far as 2025, one of the things that we've pointed out in the past is we don't have any expirations above 100,000 square feet.

並且有一個分租客和該空間的很大一部分，當你考慮到 2025 年那裡的風險狀況時，這確實有幫助，我們過去指出的一件事是我們沒有超過100,000 平方英尺的任何到期日。

So as you think about the chunkiness to the rollover schedule or the retention, it's not something that it should be as chunking in 2025. And so of course, there will be some tenants that face on that gold. But nothing is as meaningful as what we've seen in '24.

因此，當您考慮展期計劃或保留的塊狀性時，您會發現 2025 年不應該如此塊狀。當然，會有一些租戶面臨這些黃金的困境。但沒有什麼比我們在 24 年所看到的更有意義了。

Brendan Lynch, Barclays.

布倫丹·林奇，巴克萊銀行。

Great. Thanks for taking my question. Angela, in the past, I've heard you talk about being interested in highly amenitized A-plus assets with broken capital structures. Wondering if you're seeing any more of that type of opportunity or what your expectations would be for the future?

偉大的。感謝您提出我的問題。安琪拉，過去，我聽過您談到對資本結構破碎的高度便利的 A+ 資產感興趣。想知道您是否還會看到更多此類機會，或者您對未來有何期望？

Yeah, you haven't seen that kind of distress or really hit the market yet? I mean, when we were talking earlier about some additional high-quality assets come to market in, I wouldn't say that there are any with really broken capital structures or any of those situations that are really being now sort of forced into the market by the liner, as you might expect.

是的，您還沒有見過那種苦惱或真正進入市場嗎？我的意思是，當我們之前談論一些額外的優質資產進入市場時，我不會說有任何資本結構真正破裂或任何現在確實被迫進入市場的情況正如您所期望的那樣，通過班輪。

I think in certain submarkets potentially or certain markets that we operate in for, you have seen higher levels of overall new supply in the market. I think you might you might find us in the situation over the next couple of years where with construction loans coming due or something like that, there's some high-quality assets we could and potentially look at from an acquisition standpoint, that would be sort of facilitated by something going on in the capital structure.

我認為在某些潛在的子市場或我們經營的某些市場中，您已經看到市場上整體新供應水平較高。我想你可能會發現我們在未來幾年的情況下，隨著建築貸款到期或類似的情況，我們可以並可能從收購的角度考慮一些高品質的資產，這將是一種資本結構中發生的事情促進了這一點。

But, you know, most of what we're seeing come to market right now is high-quality assets with sort of good sponsorship, but people like Eliott alluded to earlier that just haven't had liquidity and are looking to sell the asset because maybe the ownership structure of the fund that was in or something like that. They were anticipating a liquidity event by now and it makes sense to at least test the market and see where values lie.

但是，你知道，我們現在看到的大部分資產都是有​​良好贊助的高品質資產，但像艾略特這樣的人早些時候提到過，他們只是沒有流動性，正在尋求出售資產，因為也許是基金的所有權結構或類似的東西。他們現在預計會出現流動性事件，至少測試市場並看看價值在哪裡是有意義的。

Maybe just a related follow-up. You mentioned that you're looking to are interested in expanding in Austin in the future. That's a market that does have some supply coming online over the next couple of years? And maybe just how should we think about the market and the opportunity through to expand through that type of acquisition?

也許只是相關的後續行動。您提到您希望將來有興趣在奧斯汀擴張。這個市場在未來幾年確實會有一些供應上線嗎？也許我們應該如何思考市場以及透過此類收購進行擴張的機會？

Yeah. I think that's a really good example of the dynamic I was just talking about, I would say, as we look at what's happening in the US and CBD, we've got Indian tower in that market, which is a very high quality asset where we're still in lease up, but feel really good about the demand prospects and how broad-based that demand has been.

是的。我認為這是我剛才談到的動態的一個很好的例子，我想說，當我們看看美國和中央商務區正在發生的事情時，我們在該市場上有印度塔，這是一項非常高品質的資產，我們仍處於租賃狀態，但對需求前景以及需求的廣泛程度感到非常滿意。

So I feel good about the market dynamics overall it is a market that's being impacted by pretty significant levels of new supply right now, which isn't really impacting our ability to get into tower leased up just based on the quality and how differentiated that asset is.

因此，我對整體市場動態感覺良好，這是一個目前受到相當大的新供應水平影響的市場，這並沒有真正影響我們僅根據資產的質量和差異化程度進入租賃塔樓的能力。

But as we do think about continuing to expand in Austin over the next few years, I think that new supply dynamics certainly could be to our benefit in terms of our ability to acquire some high-quality new assets where, you know, sort of the long-term financing structure for those assets as they stabilize is not what people might have originally anticipated.

但當我們確實考慮在未來幾年繼續在奧斯汀擴張時，我認為新的供應動態肯定會對我們有利，因為我們有能力獲得一些高品質的新資產，你知道，這些資產穩定後的長期融資結構並不是人們最初預期的。

So it certainly might be an attractive way for us to continue to grow that portfolio. But and certainly a little bit speculative today, and we'll continue to watch that market closely and evaluate opportunities as they come.

因此，這對我們來說無疑是繼續擴大投資組合的一種有吸引力的方式。但今天肯定有點投機，我們將繼續密切關注該市場並評估機會的到來。

Thank you. That concludes our Q&A session as well as the KRC 2Q '24 earnings conference call. Thank you all for your participation on today's call, and you may now disconnect your lines.

謝謝。我們的問答環節以及 KRC '24 年第二季財報電話會議到此結束。感謝大家參與今天的電話會議，現在您可以斷開線路了。