Kilroy Realty Corp (KRC) 2025 Q2 法說會逐字稿

Hello, everyone, and a warm welcome to the Kilroy Realty Corporation second-quarter 2025 earnings conference call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions)

大家好，熱烈歡迎參加 Kilroy Realty Corporation 2025 年第二季財報電話會議。我叫艾米麗，今天我將負責協調您的通話。（操作員指示）

I would now like to hand the call over to Doug Bettisworth, Vice President, Corporate Finance. Please go ahead.

現在我想將電話交給公司財務副總裁 Doug Bettisworth。請繼續。

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

大家早安。感謝您加入我們。今天與我一起參加電話會議的有執行長 Angela Aman、執行副總裁、財務長兼財務主管 Jeffrey Kuehling 以及執行副總裁、資訊長 Eliott Trencher。此外，總裁賈斯汀·斯馬特 (Justin Smart) 和執行副總裁兼首席租賃官羅布·帕拉特 (Rob Paratte) 將參加問答環節。

Please note that some of this information that 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.

請注意，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。請參閱我們的補充包，以了解有關本次電話會議和補充文件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. Angela will start the call with a strategic overview and quarterly highlights, Eliott will provide an update on our recent transaction activity, and Jeffrey will discuss our financial results and provide you with updated 2025 guidance. Then we'll be happy to take your questions. Angela?

本次電話會議將在我們的網站上進行現場直播，並將在接下來的八天內提供重播。我們的收益報告和補充資料已以 8-K 表格形式提交給美國證券交易委員會 (SEC)，也可在我們的網站上查閱。安吉拉 (Angela) 將以戰略概述和季度亮點開始電話會議，埃利奧特 (Eliott) 將提供我們最近的交易活動的最新情況，杰弗裡 (Jeffrey) 將討論我們的財務業績並為您提供最新的 2025 年指導。我們將很樂意回答您的問題。安吉拉？

Thanks, Doug, and thank you all for joining today's call. Before we begin, I want to take a moment to acknowledge the tragic events that played out last night in New York City. We're thinking about the victims, their families and everyone who is directly impacted by the traumatic events as they unfolded. Our hearts go out to everyone impacted.

謝謝，道格，謝謝大家參加今天的電話會議。在我們開始之前，我想花點時間來回顧一下昨晚在紐約市發生的悲劇。我們惦記著受害者、他們的家人以及所有直接受到這些創傷事件影響的人們。我們向所有受影響的人表示慰問。

Turning to last night's release. I'm pleased to report on a strong quarter of execution across every discipline within our company, as West Coast office fundamentals continue to solidify. During the quarter, we signed over 400,000 square feet of new and renewal leases, a material improvement both sequentially and year-over-year was a pickup in tenant sentiment and ongoing flight to quality dynamics in the office market uniquely position our premium portfolio to capture accelerating tenant demand.

回顧昨晚的發布。我很高興地報告，隨著西海岸辦公室基礎的不斷鞏固，我們公司各個學科在本季度的執行情況都表現強勁。在本季度，我們簽署了超過 40 萬平方英尺的新租約和續約，環比和同比均有實質改善，租戶情緒有所回升，辦公市場持續向優質化發展，使我們的優質投資組合具有獨特的優勢，可以滿足日益增長的租戶需求。

In parallel, we're seeing early indications of an improvement in the transaction environment (inaudible) buyers and sellers appear more prepared to execute. An encouraging signal that market participants have greater conviction in the continued path of the West Coast office recovery.

同時，我們看到交易環境有所改善的早期跡象（聽不清楚）買家和賣家似乎都更有準備執行。這是一個令人鼓舞的信號，顯示市場參與者對西海岸辦公大樓復甦的持續性更有信心。

From a leasing perspective, we saw significant strength this quarter in both San Francisco and San Diego, with the recent inflection in activity in the city of San Francisco being particularly notable. Active tenant demand in the city has nearly doubled since 2023, now totaling approximately 7 million square feet despite a significant increase in recent execution velocity. We appear to be at the tail end of major space givebacks by big tech companies and the market can now benefit from the substantial growth and expansion of companies in the AI space.

從租賃角度來看，本季我們看到舊金山和聖地牙哥的租賃業務都表現出顯著的強勁成長，其中舊金山市近期租賃活動的變化尤為顯著。儘管近期執行速度顯著提高，但自 2023 年以來，該市的活躍租戶需求幾乎翻了一番，目前總計約 700 萬平方英尺。我們似乎正處於大型科技公司重大空間讓步的尾聲，市場現在可以從人工智慧領域公司的大幅成長和擴張中受益。

In addition, positive trends in public safety and downtown revitalization efforts by the city's new administration have given tenants the confidence to expand their search parameters outside of the financial district and into the South of Market or (inaudible) submarket, where our assets have seen a 110% year-over-year increase into our activity.

此外，新政府在公共安全和市中心振興方面採取的積極趨勢使租戶有信心將他們的搜尋範圍從金融區擴大到市場南區或（聽不清楚）子市場，在這些地區，我們的資產活動同比增長了 110%。

A clear example of these dynamics is a 93,000 square foot lease we signed in the second quarter with an AI tenant at our 201 3rd Street asset in SoMa. This large transaction marks the second consecutive quarter of major leasing at this property, and underscores the ability of our leasing team to understand the specific needs of rapidly scaling AI tenants, many of whom are actively prioritizing landlords who can accommodate their anticipated growth trajectories and provide flexibility that will allow them to grow incrementally over time.

這些動態的一個明顯例子是我們在第二季與位於 SoMa 的 201 3rd Street 資產的 AI 租戶簽署了一份 93,000 平方英尺的租約。這筆大額交易標誌著該物業連續第二個季度出現大規模租賃，凸顯了我們的租賃團隊能夠理解快速擴張的 AI 租戶的特定需求，其中許多租戶都在積極優先考慮能夠適應其預期增長軌跡並提供靈活性的房東，使他們能夠隨著時間的推移逐步增長。

We're excited about the turnaround we're seeing play out in San Francisco and are well positioned to capitalize on the accelerating momentum. In San Diego, which has been a consistently strong market for some time, we experienced broad-based activity in the second quarter across all submarkets. In Delmark Heights, we signed a renewal and expansion at One Paseo at the highest rate ever recorded for an office lease in San Diego County.

我們對舊金山出現的轉變感到非常興奮，並且已經做好了充分的準備來利用這一加速發展勢頭。聖地牙哥市場在一段時間內一直保持強勁，第二季度我們在所有子市場都經歷了廣泛的活動。在德爾馬克高地，我們簽署了 One Paseo 的續約和擴建協議，這是聖地牙哥縣有史以來最高的辦公室租賃價格。

In Little Italy, we signed a 24,000 square foot lease at our recently developed 2100 Kettner asset, continuing the accretive lease-up of some of the highest quality vacancy in our portfolio. And in UTC, we signed a 25,000 square foot lease at our (inaudible) executive drive redevelopment projects with a leading research and health care Institute.

在小義大利，我們在最近開發的 2100 Kettner 資產上簽署了一份 24,000 平方英尺的租約，繼續增加我們投資組合中一些最優質空置物業的租賃量。在 UTC，我們與一家領先的研究和醫療機構簽署了（聽不清楚）行政大道重建項目的 25,000 平方英尺租約。

As it relates to development leasing at Kilroy Oyster Point, our premier development project in the heart of the South San Francisco life science ecosystem, we're pleased to report that we have advanced to active lease negotiations on multiple transactions, totaling approximately 100,000 square feet and we anticipate lease execution with these life science and health care tenants during the third and fourth quarters.

關於位於南舊金山生命科學生態系統中心的首要開發項目 Kilroy Oyster Point 的開發租賃，我們很高興地報告，我們已經就多項交易進行了積極的租賃談判，總面積約為 100,000 平方英尺，我們預計將在第三季度和第四季度與這些生命科學和醫療保健租戶簽訂租賃協議。

As we progress deals that have been in the pipeline for some time, we've also continued to see meaningful engagement from new prospects as well. Tour activity during the second quarter accelerated meaningfully and highlights the degree to which the quality and scale of Kilroy Oyster Point continues to resonate with high-caliber growth-oriented tenants taking purpose-built infrastructure in a primary innovation cluster even against the backdrop of a more challenging life science ecosystem.

隨著我們不斷推動已經籌備一段時間的交易，我們也繼續看到來自新客戶的有意義的參與。第二季的參觀活動顯著加速，凸顯了即使在更具挑戰性的生命科學生態系統的背景下，Kilroy Oyster Point 的品質和規模在多大程度上繼續與高素質的成長型租戶產生共鳴，這些租戶在主要創新集群中採用專用基礎設施。

Turning to capital allocation. We'll remain active and disciplined as we recycle capital with a focus on long-term cash flow growth and value creation, being responsive to evolving dynamics in the office and life science sectors and changes in the relative attractiveness of the various submarkets in which we operate. As we look forward, we believe that continued portfolio rotation executed thoughtfully and strategically will be key to unlocking value in today's environment. Our investments team has been very active over the last several quarters, on teeing up dispositions and underwriting acquisitions that fit with our long-term objectives.

轉向資本配置。我們將保持積極和自律，循環利用資本，重點關注長期現金流增長和價值創造，響應辦公和生命科學領域不斷變化的動態以及我們經營的各個子市場的相對吸引力的變化。展望未來，我們相信，持續、深思熟慮且有策略地執行投資組合輪調將是當今環境下釋放價值的關鍵。過去幾個季度，我們的投資團隊一直非常活躍，致力於準備符合我們長期目標的處置和承銷收購。

Accordingly, last night, we announced the disposition of an operating property in downtown Santa Monica and the execution of a contract to sell a 4-building campus in Silicon Valley, which is expected to close at the end of the third quarter. These dispositions at attractive valuation have allowed us to efficiently monetize several lower-growth assets that we believe would have required outsized reinvestment capital over the coming years.

因此，昨晚，我們宣布處置位於聖莫尼卡市中心的一處經營性地產，並簽署出售位於矽谷的一座由 4 棟建築組成的園區的合同，預計將於第三季度末完成。這些以有吸引力的估值進行的處置使我們能夠有效地將幾項低成長資產貨幣化，我們認為這些資產在未來幾年將需要大量的再投資資本。

As proceeds are realized, we'll pursue a balanced mix of selective reinvestment opportunities and debt repayment with a focus on optimizing portfolio returns and maintaining a strong and flexible capital structure. We're pleased to see the pipeline of actionable, value-accretive opportunities in some of the highest performing submarkets on the West Coast and in Austin continue to grow. And as always, we'll be evaluating such opportunities relative to all of our reinvestment options including leverage-neutral stock buybacks.

隨著收益的實現，我們將尋求選擇性再投資機會和債務償還的平衡組合，重點是優化投資組合回報並保持強大而靈活的資本結構。我們很高興看到西海岸和奧斯汀一些表現最好的子市場中可操作的、增值的機會不斷增長。和往常一樣，我們將根據所有再投資選擇（包括槓桿中性股票回購）來評估此類機會。

As it relates to our future development pipeline, we've made further progress on monetizing land parcels that have the highest and best use outside of the company's core competencies. As discussed last quarter, in April, we signed an agreement to sell a portion of our Santa Fe Summit site in San Diego. And last night, we announced an agreement to (inaudible) at 26th Street in Los Angeles. These announced transactions, which aggregate total expected gross proceeds of $79 million represent over half of our stated goal of realizing $150 million from the monetization of the future pipeline, with proceeds to be realized over the next several years as re-entitlement efforts are completed.

就我們未來的發展計畫而言，我們在將公司核心競爭力之外具有最高和最佳用途的土地貨幣化方面取得了進一步的進展。正如上個季度所討論的，四月份，我們簽署了一項協議，出售位於聖地亞哥的聖達菲峰會工廠的部分業務。昨晚，我們宣布了一項與洛杉磯第 26 街（聽不清楚）達成的協議。這些已宣布的交易預計總收益為 7,900 萬美元，占我們既定目標的一半以上，即透過未來管道貨幣化實現 1.5 億美元的收益，這些收益將在未來幾年內隨著重新授權工作的完成而實現。

The Flower Mart project, which consists of a 7-acre development site in the central SoMa submarket of San Francisco, remains our single largest investment in the future development pipeline. As discussed on the last several conference calls, long-term value maximization at the Flower Mart will require the creation of significant additional flexibility and optionality as it relates to both the ultimate mix of uses on site and the phasing of development execution.

花卉市場項目位於舊金山中心 SoMa 子市場，佔地 7 英畝，是我們在未來開發項目中最大的單筆投資。正如在過去幾次電話會議中所討論的那樣，花卉市場的長期價值最大化將需要創造顯著的額外靈活性和可選性，因為它與現場的最終用途組合和開發執行的分階段有關。

Over the course of the last six months, our development team has worked diligently on a significant redesign and reimagining of the Flower Mart project that will allow us to be responsive to market conditions as they continue to evolve. As you may remember, we're currently entitled for a 2.3 million square foot primarily office project. And while we remain very encouraged by the resurgence in office demand in San Francisco, we also remain convicted that maximizing value on the site will require a broader mix of uses than originally contemplated, which may allow for the development of certain components of the project earlier than otherwise anticipated.

在過去的六個月中，我們的開發團隊勤奮地對花卉市場項目進行了重大的重新設計和重新構想，以使我們能夠對不斷變化的市場狀況做出反應。您可能還記得，我們目前有權承接一個佔地 230 萬平方英尺的主要辦公室項目。儘管我們對舊金山辦公大樓需求的復甦感到非常鼓舞，但我們仍然堅信，要最大限度地提高該地塊的價值，就需要比最初設想的更廣泛的用途組合，這可能使該項目的某些部分比預期更早地開發。

We have recently had constructive and encouraging conversations with the city regarding our proposed modifications to the program. While these discussions are still ongoing, we've gained greater clarity around both the approval process and the time line required to secure the flexibility we're working towards. As a result, based on the best information we have available today, we expect interest and other expense capitalization at the Flower Mart to cease at the end of 2025. While we will update this assumption as appropriate, we're not currently assuming any capitalization of the project in 2026.

我們最近就我們提出的該計劃的修改方案與市政府進行了建設性和令人鼓舞的對話。雖然這些討論仍在進行中，但我們對審批流程和確保我們正在努力實現的靈活性所需的時間表有了更清晰的了解。因此，根據我們目前掌握的最佳信息，我們預計花卉市場的利息和其他費用資本化將於 2025 年底停止。雖然我們會適時更新這個假設，但目前我們並未假設該專案在 2026 年實現任何資本化。

I want to conclude by thanking the entire Kilroy team for another outstanding quarter of execution across all fronts. The pace of work has accelerated across the company as leasing and transaction activity has increased, and I'm grateful for the way the entire organization has responded. At the same time, this team's willingness to innovate and embrace change is creating additional value for our stakeholders each and every day and positioning us for continued success in the quarters ahead. Eliott?

最後，我要感謝整個 Kilroy 團隊在本季度各個方面都表現出色。隨著租賃和交易活動的增加，整個公司的工作節奏也加快了，我很感激整個組織的回應方式。同時，團隊願意創新並接受變革，每天都在為我們的利害關係人創造額外的價值，並為我們在未來幾季繼續取得成功做好準備。艾略特？

Thanks, Angela. Before getting into the specifics on the transactions we announced last night, I want to expand on the long-term objectives of our capital allocation strategy that Angela referenced, highlighting three primary goals. First is something we have discussed on prior calls. Monetize nonincome-producing land that has a higher and better use beyond office or life science. Second, sell operating properties that are valued at favorable levels relative to our expectations for fundamentals.

謝謝，安吉拉。在詳細介紹我們昨晚宣布的交易之前，我想先闡述安琪拉提到的資本配置策略的長期目標，強調三個主要目標。首先是我們在之前的電話會議中討論過的事情。將不產生收入的土地貨幣化，使其除了用於辦公室或生命科學之外，還有更高、更好的用途。其次，出售那些相對於我們的基本面預期而言估值較高的經營性資產。

Third, concentrate investments in areas of conviction, specifically submarkets with diverse and robust demand drivers, high barriers to entry and a track record of significant and consistent rent growth. These goals have guided our actions to date. And as we continue to execute, we are confident that we will further distinguish the Kilroy portfolio and better position the company for outsized cash flow growth.

第三，集中投資於有信心的領域，特別是具有多樣化和強勁的需求驅動因素、高進入障礙以及租金持續大幅增長記錄的子市場。這些目標一直指導著我們迄今為止的行動。隨著我們繼續執行，我們相信我們將進一步區分 Kilroy 投資組合，並使公司更好地實現超額現金流成長。

With that said, we're thrilled to have two land sites and two operating properties in various stages of completion. In total, these four transactions will raise over $480 million of gross proceeds. First, on the land sales. We're under contract to (inaudible) at 26th Street in our Los Angeles region to a residential developer for $41 million or roughly $20 million per acre. Similar to our sale of a portion of Santa Fe Summit, 26th Street has a path to residential entitlements that does not require a full change of use. We expect the transaction to close upon receipt of entitlements, which we estimate to be in 2026.

話雖如此，我們很高興擁有兩塊土地和兩個處於不同完工階段的營運地產。總計這四筆交易將籌集超過 4.8 億美元的總收益。第一，關於土地出售。我們與一家住宅開發商簽訂了位於洛杉磯地區第 26 街的（聽不清）土地的合同，價格為 4100 萬美元，即每英畝約 2000 萬美元。與我們出售聖塔菲峰會部分土地的情況類似，第 26 街有一條獲得住宅權的途徑，不需要完全改變用途。我們預計交易將在收到權益後完成，我們估計完成時間為 2026 年。

Next, at the very end of the quarter, we completed the sale of 501 Santa Monica in Downtown Santa Monica to an institutional owner for $40 million or slightly over $500 per square foot. The building is one of our older properties and requires a substantial amount of capital due to both base building needs and leases rolling over in the coming years. In our view, the capital requirement was outsized compared to the growth prospects for the property, making this a logical disposition candidate.

接下來，在本季末，我們以 4000 萬美元或每平方英尺略高於 500 美元的價格將聖莫尼卡市中心的 501 Santa Monica 出售給了一家機構所有者。該建築是我們較老的房產之一，由於基礎建築需求和未來幾年租約的展期，需要大量資金。我們認為，與該房產的成長前景相比，資本需求過大，因此該房產是合理的處置候選對象。

Additionally, we are under contract to sell a 4-building campus in Silicon Valley for $365 million or $550 per square foot. This campus is 89% leased today going down to 65% leased in 2026, when two of the four buildings will be fully vacant. One of the vacant buildings is 25 years old and requires both base building capital and leasing capital. The other has been leased by a single tenant and requires leasing capital all of which adds up to a significant spend in a market that has seen pressure on rents in recent years. As we evaluated alternatives, we concluded that selling at this value generated the best risk-adjusted return for shareholders.

此外，我們還簽訂了合同，以 3.65 億美元或每平方英尺 550 美元的價格出售位於矽谷的一棟由 4 棟建築組成的園區。目前，園區的出租率為 89%，到 2026 年，這一數字將下降到 65%，屆時四棟建築中的兩棟將完全空置。其中一棟空置建築已有 25 年歷史，需要基礎建築資本和租賃資本。另一棟建築物由單一租戶出租，需要租賃資本，在近年來租金壓力較大的市場中，所有這些加起來是一筆不小的支出。在評估替代方案時，我們得出結論，以此價值出售可為股東帶來最佳的風險調整回報。

Finally, touching on acquisitions, we continue to diligently underwrite a variety of deals across all our existing markets. We do not have anything to announce at this time, but the opportunity set has improved in recent months in terms of both quantity and quality. We're optimistic that we will find investments that meet our criteria, generate little to no dilution in the short term and produce materially better cash flow growth in the medium and long term. With that, I will turn the call over to Jeffrey.

最後，談到收購，我們將繼續在所有現有市場中努力承銷各種交易。我們目前還沒有任何消息可以宣布，但近幾個月來，機會在數量和品質上都有所改善。我們樂觀地認為，我們將找到符合我們標準的投資，在短期內幾乎不會產生稀釋，並在中長期產生更好的現金流成長。說完這些，我將把電話轉給傑弗裡。

Thanks, Eliott. FFO for the quarter was $1.13 per diluted share, which includes approximately $0.11 per share of onetime items, including most notably, a $10.7 million lease termination fee which contributed $0.05 per share to FFO, net of noncontrolling interest. Additional onetime items include approximately $6.9 million or $0.06 per share, largely related to (inaudible) reversals and net real estate tax refund benefit. Cash same-property NOI growth in the second quarter was 450 basis points, with the previously mentioned onetime items on a cash basis, contributing 300 basis points.

謝謝，艾略特。本季度的 FFO 為每股稀釋後 1.13 美元，其中包括每股約 0.11 美元的一次性項目，其中最值得一提的是 1070 萬美元的租賃終止費，扣除非控股權益後，該費用為每股 FFO 貢獻了 0.05 美元。其他一次性項目包括約 690 萬美元或每股 0.06 美元，主要與（聽不清楚）逆轉和淨房地產稅退稅收益有關。第二季現金同房淨營業收入成長率為 450 個基點，其中前面提到的以現金為基礎的一次性專案貢獻了 300 個基點。

Turning to occupancy. We ended the second quarter at 80.8%, down from 81.4% at the end of the first quarter. As previously communicated, this decline was expected and reflects the rightsizing and renewal by DermTech along with the early vacate related to the 23 (inaudible) bankruptcy. It's worth noting that the second quarter occupancy statistics now exclude both the 89% leased 4-building campus designated as held for sale in 501 Santa Monica, which was sold during the second quarter.

談到入住率。第二季末，我們的覆蓋率為 80.8%，低於第一季末的 81.4%。如同先前所傳達的，這種下降是預料之中的，反映了 DermTech 的調整和更新，以及與 23（聽不清楚）破產相關的早期撤離。值得注意的是，第二季的入住率統計數據現在不包括位於聖莫尼卡 501 號、出租率為 89% 的 4 棟建築園區，該園區被指定為待售，已於第二季出售。

Accordingly, we made conforming updates to our lease expiration schedules to reflect the removal of (inaudible) these assets. While their removal negatively impacted occupancy by 20 basis points, we were able to maintain the midpoint of our occupancy guidance range due to the team's continued success in accelerating lease commencement dates across the portfolio.

因此，我們對租賃到期時間表進行了相應更新，以反映（聽不清楚）這些資產的移除。儘管他們的撤離對入住率產生了 20 個基點的負面影響，但由於該團隊在加快整個投資組合的租賃開始日期方面取得持續成功，我們能夠維持入住率指導範圍的中點。

Looking ahead, we continue to expect a modest decline in occupancy in the third quarter, primarily due to the addition of two redevelopment projects entering the stabilized portfolio during the period. That said, we also remain optimistic, so we'll see positive net absorption in the fourth quarter, supported by significant lease commencements from previously executed leases. It's important to note that the spread between leased and occupied space increased to 270 basis points this quarter, a 100 basis point improvement year-over-year, representing significant built-in growth that will materialize in the portfolio throughout the second half of 2025 and into 2026.

展望未來，我們仍預期第三季入住率將小幅下降，主要原因是此期間有兩個重建項目進入穩定的投資組合。儘管如此，我們仍然保持樂觀，因此我們將看到第四季度的淨吸收量為正，這得益於先前簽訂的租約的大量開始。值得注意的是，本季租賃面積與佔用面積之間的差距擴大至 270 個基點，較上年同期提高 100 個基點，這代表著顯著的內在增長，並將在 2025 年下半年至 2026 年的投資組合中實現。

The GAAP re-leasing spreads were negative 11.2% in the second quarter and cash releasing spreads were negative 15.2%, both of which were largely impacted by a single large lease in San Francisco. While this lease was completed at lower base rents, they require limited capital and produce strong net effective rent. Notably, the lease term, which is under three years will provide us with a valuable near-term occupancy while maintaining our ability to reprice the space as the market continues to improve. Excluding this one transaction, cash re-leasing spreads would have been approximately positive 1% (inaudible) meaningful improvement relative to the prior quarter.

第二季 GAAP 轉租利差為-11.2%，現金釋放利差為-15.2%，這兩項利差均主要受到舊金山一項大型租賃的影響。雖然該租賃是以較低的基本租金完成的，但它們所需的資本有限，並產生強勁的淨有效租金。值得注意的是，不到三年的租賃期限將為我們提供寶貴的短期佔用，同時隨著市場持續改善，我們能夠重新定價空間。不包括這筆交易，現金再租賃利差將約為正 1%（聽不清楚），與上一季相比有顯著改善。

Turning to guidance. We raised our 2025 FFO outlook to a range of $4.05 to $4.15 per share, a $0.15 increase at the midpoint. This revised guidance reflects our updated expectations for capitalization of the Flower Mart accounting for $0.08 per share at the midpoint. The significant termination fee recognized in the second quarter, representing $0.05 per share and our updated same-property NOI guidance, representing $0.04 per share, all of which were partially offset by the anticipated net impact of announced capital recycling activities.

轉向指導。我們將 2025 年 FFO 預期上調至每股 4.05 美元至 4.15 美元，中間值上調 0.15 美元。這份修訂後的指引反映了我們對花卉市場資本化的最新預期，即中間價每股 0.08 美元。第二季確認的巨額終止費為每股 0.05 美元，而我們更新的同類物業淨營運收入指引為每股 0.04 美元，所有這些都被宣布的資本回收活動的預期淨影響部分抵消。

Same-property NOI growth is now expected to range from negative 1% to negative 2%, a 75 basis point improvement at the midpoint. Our updated guidance range implies a deceleration in same-property NOI growth throughout the second half of the year, largely due to the previously discussed impact of onetime items in the second quarter of this year. In addition, we recognized significant restoration in settlement fee income in the fourth quarter of 2024, which will create a difficult comparison for the fourth quarter of 2025.

目前預計同類房產的 NOI 成長率將在負 1% 至負 2% 之間，中間值改善了 75 個基點。我們更新後的指導範圍意味著今年下半年同店淨營業收入成長將放緩，這主要是由於先前討論過的今年第二季一次性專案的影響。此外，我們確認 2024 年第四季結算費收入大幅恢復，這將為 2025 年第四季帶來困難的比較。

As Angela previously mentioned, we have updated our capitalization assumptions for the Flower Mart. When we initiated 2025 guidance in February, the range of possible outcomes reflected the uncertainty inherent in the process with the cessation of capitalization ranging from as early as June to the latest December. Given the progress we have made today, we have updated our (inaudible) for the cessation of interest and other expense capitalization to year-end. We will update this (inaudible) as appropriate. But as previously mentioned, we are not currently assuming any capitalization of the product in 2026.

正如Angela之前提到的，我們更新了花卉市場的資本化假設。當我們在2月啟動2025年指引時，各種可能的結果反映了該過程固有的不確定性，資本化的終止時間最早在6月，最晚在12月。鑑於我們今天的進展，我們已更新（聽不清楚），停止利息和其他費用資本化至年底。我們將根據需要更新此（聽不清楚）。但如前所述，我們目前不假設該產品在 2026 年實現任何資本化。

Relative to sources and uses for the back half of this year, we expect to utilize the proceeds from the announced dispositions for a combination of reinvestment opportunities and debt repayment. As we approach our remaining 2025 bond maturity, we will evaluate the capital markets for an opportunistic execution window. Our balance sheet is well positioned to support growth with a well-laddered maturity schedule and strong liquidity, which will provide valuable flexibility as opportunities present themselves.

相對於今年下半年的來源和用途，我們預計將利用已宣布的處置所得進行再投資和償還債務。隨著我們剩餘的 2025 年債券到期日臨近，我們將評估資本市場以尋找機會執行窗口。我們的資產負債表具有良好的定位，能夠透過完善的到期計劃和強大的流動性來支持成長，這將在機會出現時提供寶貴的靈活性。

With that, we're happy to take your questions. Operator?

我們很樂意回答您的問題。操作員？

(Operator Instructions) Jana Galan, Bank of America.

（操作員指示）美國銀行的 Jana Galan。

Congrats on the leasing and transactions this quarter. Can you talk a little bit about the type of buyers out there, the breadth of the bidding pool and whether you're seeing some owner occupants. And then just discussions on valuation, whether it's more of a price per square foot discussion or cap rates and whether it's different in San Francisco versus L.A.?

恭喜本季的租賃和交易。您能否稍微談談買家的類型、競標範圍的廣度以及您是否看到一些自住業主。然後只是關於估值的討論，是否更多的是每平方英尺的價格討論或資本化率，以及舊金山和洛杉磯是否不同？

Jana, it's Eliott. So every transaction is going to be different, and we touched on this a little bit last quarter with the different types of groups that we've seen out there. And there's everything from institutional buyers to high net worth to owner users and each group is going to think about it a little bit differently depending on the profile of the asset.

賈娜，我是艾略特。因此，每筆交易都會有所不同，上個季度我們曾就此問題討論過我們所見過的不同類型的團體。從機構買家到高淨值人士到所有者用戶，每個群體都會根據資產的狀況以不同的方式考慮這個問題。

So it's a little bit hard to kind of generalize, but what we've seen with the transactions that we completed were pretty good debt, frankly, across all these different types of opportunities. And each group is very different. The 26th Street is an example, since that was going to a residential developer, had a very different set of folks that showed up relative to 501 Santa Monica.

所以這有點難以概括，但坦白說，從我們完成的交易來看，在所有這些不同類型的機會中，債務都是相當不錯的。而且每個群體都非常不同。以第 26 街為例，由於該街是為住宅開發商而建，因此與聖莫尼卡 501 號相比，前來開發的人截然不同。

So we've been pretty methodical with how we've tried to approach the disposition market. And now that we're seeing some depth there, that kind of gave us confidence early in the year to start testing and we like what we saw, which is why we executed.

因此，我們一直非常有條理地嘗試進入處置市場。現在我們看到了一些深度，這給了我們信心在年初開始測試，我們喜歡我們所看到的，這就是我們執行的原因。

Yes. I mean I'd just add to that. I agree with everything Eliott said. I do think you're seeing a widening out of the types of players that are evaluating, particularly office -- operating office assets in our core markets across the West Coast. As I mentioned in my prepared remarks, I think it really speaks to growing conviction and the continued path of the West Coast office recovery, which is a very encouraging sign. A lot more institutional buyers than what we would have seen six or nine months ago.

是的。我的意思是我只是想補充一點。我同意艾略特所說的一切。我確實認為，您正在看到評估的參與者類型正在不斷擴大，特別是辦公室——在我們西海岸的核心市場運營辦公室資產。正如我在準備好的演講中提到的那樣，我認為這確實表明人們的信心不斷增強，西海岸辦公室復甦的道路仍在繼續，這是一個非常令人鼓舞的跡象。與六個月或九個月前相比，機構買家的數量要多得多。

Great. And then on kind of the use of proceeds, you mentioned reinvestment and debt repayment, but also leverage neutral share buybacks. Can you remind us kind of what your authorized -- authorization is now in the buybacks?

偉大的。然後，關於收益的用途，您提到了再投資和債務償還，但也利用了中性股票回購。您能否提醒我們一下您現在在回購中授權的內容？

Yes. I think the total authorization size is about $400 million. So we've got capacity. We had re-upped that program, I think, around the time that I started. So we haven't use it. So we've got almost full authorization under that program.

是的。我認為總授權規模約4億美元。所以我們有能力。我想，在我開始工作的時候，我們已經重新啟動了該計劃。所以我們沒有使用它。因此，我們幾乎獲得了該計劃的完全授權。

Steve Sakwa, Evercore ISI.

史蒂夫‧薩誇 (Steve Sakwa)，Evercore ISI。

Maybe Angela, could you just provide a little bit more detail on KOP 2, the activity? I think you said 100,000 feet -- is it life science? Is it traditional office? And can you maybe just broadly talk about the economics and how those deals may stack up to your original underwriting?

安吉拉，您能否提供一些有關 KOP 2 活動的更多細節？我想你說的是 100,000 英尺——這是生命科學嗎？是傳統辦公室嗎？您能否大致談談經濟狀況以及這些交易與您最初的承銷相比如何？

Yes. Thanks, Steve. We're really very encouraged by the activity we've seen and continue to see at KOP. We've been talking about the kind of growing pipeline there for some time and the amount of tour activity that, that asset has seen. And we feel like the project that we delivered late last year is just really hitting the mark in terms of tenants that are looking for high-quality, purpose-built life science product, highly amenitized and in that core life science ecosystem.

是的。謝謝，史蒂夫。我們對 KOP 所見和持續看到的活動感到非常鼓舞。一段時間以來，我們一直在談論那裡不斷增長的管道類型以及該資產所經歷的旅遊活動數量。我們認為，我們去年年底交付的專案確實達到了租戶的要求，他們正在尋找高品質、專用生命科學產品、高度便利且處於核心生命科學生態系統中的東西。

So the amount of activity we're seeing has been really, really encouraging. As I mentioned in my remarks, even despite sort of some headwinds from a life science broader ecosystem perspective. What we did say on the call is we've moved to active lease negotiations with about 100,000 feet of primarily health care and life science tenants. So they're all more traditional life science health care uses.

因此，我們看到的活動數量確實非常令人鼓舞。正如我在發言中提到的，儘管從生命科學更廣泛的生態系統角度來看存在一些阻力。我們在電話會議上確實說過，我們已經開始與大約 100,000 英尺的主要醫療保健和生命科學租戶進行積極的租賃談判。所以它們都是更傳統的生命科學醫療保健用途。

We do think that the project retains broad-based appeal to a wide range of potential tenants that are in the market, including more tech uses, people that would have demand for dry labs, more office-specific uses. But we do think this first 100,000 square feet will execute or more life science and health care oriented. So that's exciting for the project and bodes well for future growth and future phases as well.

我們確實認為該項目對市場上廣泛的潛在租戶具有廣泛的吸引力，包括更多的技術用途、對乾實驗室有需求的人、更多的辦公室特定用途。但我們確實認為這前 100,000 平方英尺將用於執行或更多生命科學和醫療保健領域。這對於項目來說是令人興奮的，並且預示著未來的成長和未來階段將會很好。

I think it's too early to talk more specifically about the economics. I think rents have held up pretty well. They're certainly -- just given what's happened to the broader ecosystem overall, there is more capital going into certain (inaudible). But we think relative to the way this project was originally underwritten, we feel really good about the activity and how it's stacking up, but as we get leases signed, we can probably update more specifically.

我認為現在更具體地談論經濟問題還為時過早。我認為租金保持得相當好。他們當然——考慮到整個生態系統發生的情況，有更多的資本進入某些（聽不清楚）。但我們認為，相對於該項目最初的承保方式，我們對活動及其進展感到非常滿意，但隨著我們簽署租約，我們可能會更具體地更新。

Okay. And then secondly, I know it's a bit early to really turn your eye to '26, but the lease expiration schedule does remain a bit elevated even though you were able to kind of remove I think, a large expiration with the pending sales in Silicon Valley. But just how are you thinking about I guess, retention for next year? And I guess do you have a thought on kind of when occupancy in the portfolio may bottom?

好的。其次，我知道現在就將目光轉向 26 年還為時過早，但租約到期時間表確實仍然有點高，儘管我認為你能夠透過矽谷的待售來消除大量到期時間。但是我猜您是如何考慮明年的保留的？我想您是否想過投資組合的入住率何時會觸底？

Yes. I mean, let me take that in two pieces. One, just to talk about the occupancy trajectory for 2025, and then I'll sort of touch on your broader question for 2026. 2025, and this is consistent with what we've been saying for the last couple of quarters. The Q2 decline was fully expected.

是的。我的意思是，讓我把它分成兩個部分來理解。首先，我先談談 2025 年的入住率走勢，然後我會談談您關於 2026 年的更廣泛的問題。 2025 年，這與我們過去幾季所說的一致。第二季的下滑是完全可以預料到的。

We had a downsize of a tenant that had gone bankrupt and was bought by another entity. We did a downsize in the second quarter. We also had a vacate related to the 23andMe bankruptcy. So those we saw coming and had communicated about them on the last call.

我們裁減了一位破產的租戶，該租戶被另一個實體收購。我們在第二季度進行了裁員。我們也因 23andMe 破產而撤離。因此，我們看到了這些人的到來，並在上次通話中與他們進行了溝通。

As we look out to the third quarter, I still think we're somewhat negative net absorption in Q3, but you are going to see a bigger occupancy impact due to the two redevelopment assets coming into the pool in Q3. So we should all be expecting that. The signed, but not commenced pool has now grown to 270 basis points, which represents a significant source of growth as we look into the second half of 2025 and into 2026. We've got three significant lease commencements coming out of that pool in the fourth quarter. So I fully expect that fourth quarter of this year were positive net absorption.

展望第三季度，我仍然認為第三季度的淨吸收量略為負值，但由於第三季兩項重建資產進入池中，您將看到更大的入住率影響。所以我們都應該期待這一點。已簽署但尚未開始的資金池現已成長至 270 個基點，這對我們展望 2025 年下半年和 2026 年而言，是一個重要的成長來源。第四季度，我們有三份重要的租賃合約從該合約池開始生效。因此我完全預計今年第四季的淨吸收量為正。

As we look into 2026, a few things to note. One, KOP comes into the pool in January of next year. And despite the fact that we're making really good progress, I think, on leasing activity at that property, nothing is going to be built occupancy at the time it comes into the pool. So that's going to set us back from a reported occupancy perspective, not necessarily a like-for-like occupancy perspective, but something we should all be prepared for.

展望2026年，有幾點需要注意。第一，KOP明年一月入池。儘管事實上我們在該物業的租賃活動上取得了很大進展，但我認為，當該物業進入游泳池時，不會建造任何可供入住的建築。因此，從報告的入住率角度來看，這會讓我們受挫，不一定是從同類入住率角度來看，但我們都應該做好準備。

As we look at the expiration schedule for next year, obviously, we've been really diligently working on addressing those expirations. And the sale of the 4-building campus in Silicon Valley certainly addresses a significant portion of what we believe was going to be a vacate in 2026.

當我們查看明年的到期時間表時，顯然，我們一直在努力解決這些到期問題。而出售矽谷的 4 棟建築園區無疑解決了我們認為將在 2026 年騰空的很大一部分問題。

The lease expiration schedule is relatively first half weighted, especially in Q2. I think if you look at the lease expiration disclosure in the Q, the leasing team is working diligently across that entire pipeline to work with tenants to understand their needs for next year and address those as much as we can. But I do expect that we're going to see some larger vacates in the first half of the year. So we'll know more as we get into the next quarter or two, but I do think retention that continues to be somewhat below our historical average is likely in 2026.

租約到期時間表相對上半年偏重，尤其是在第二季。我認為，如果您查看 Q 中的租約到期披露，您會發現租賃團隊正在整個管道中勤奮工作，與租戶合作，了解他們明年的需求，並儘可能地解決這些問題。但我確實預計今年上半年我們將會看到一些更大規模的空置。因此，隨著進入下一兩個季度，我們會了解更多信息，但我確實認為，2026 年的留存率可能會繼續略低於我們的歷史平均水平。

It's hard to talk more specifically about the timing of an occupancy trough next year as we feel this leasing momentum across the portfolio, both the operating portfolio and the development portfolio building. So I think we need another quarter or so to be able to give more specifics about the timing of occupancy or the trajectory of occupancy within 2026. But I think those are all important considerations as you think about next year.

很難更具體地談論明年入住率低谷的時間，因為我們感覺到整個投資組合（包括營運投資組合和開發投資組合建設）的租賃勢頭。因此，我認為我們還需要大約一個季度的時間才能提供有關入住時間或 2026 年入住軌蹟的更多細節。但我認為，當你考慮明年的時候，這些都是重要的考慮因素。

Nick Yulico, Scotiabank.

加拿大豐業銀行的 Nick Yulico。

I guess first question is just following up on the activity you cited at KOP 2. Can you just talk about if that would be for some of the spec suites where commencement of NOI could be sooner, if it's related to that space?

我想第一個問題只是跟進您在 KOP 2 中提到的活動。您能否談談這是否適用於某些規格套件，如果與該空間相關，NOI 的開始可能會更早？

One of the transactions, we mentioned working on multiple transactions, one of the multiple transactions we're working on would be per spec suite user. We also think within the tour activity that's building at the project or is accelerated, there's additional spec suite users, but again, even if we sign the Q3 or Q4 of this year could potentially be first half next year occupancy.

其中一筆交易，我們提到了處理多筆交易，我們正在處理的多筆交易之一將是針對每個規範套件用戶的。我們也認為，在專案正在建造或加速的旅遊活動中，會有額外的規格套件用戶，但即使我們簽約，今年第三季或第四季也可能是明年上半年的入住率。

Okay. Great. And then just second question is going back to the campus that in the works to sell? I mean, I know you gave some metrics on it. Is there any way to maybe talk a little bit more about how you're thinking about the pricing?

好的。偉大的。那麼第二個問題是回到正在出售的校園嗎？我的意思是，我知道你給了一些相關指標。能否再多談談您對定價的看法？

And you said that you thought it was a good price relative to if you had to re-lease the asset. I know there was some leasing activity going on, but any more of just sort of like a cap rate type impact, stabilized yield on cost? How to sort of think about that transaction pricing?

您說，相對於重新租賃資產而言，您認為這是一個不錯的價格。我知道正在進行一些租賃活動，但還有什麼類似資本化率類型的影響，穩定的成本收益率嗎？如何考慮交易定價？

Nick, it's Eliott. So we're somewhat bound by an NDA, so we can't get into too many specifics on the transaction, but kind of talk about how we think about all of our dispositions is that we evaluate essentially what do we think the -- what are the proceeds that we're going to get and what is our forward-looking outlook for the cash flows at that particular project? And that's going to factor in whatever leasing needs to be done, whatever capital needs to be spent and what our view of what the rent outlook is.

尼克，我是艾略特。因此，我們在某種程度上受到保密協議的約束，因此我們不能談論太多有關交易的細節，但關於我們如何看待所有處置，我們基本上評估了我們認為的——我們將獲得的收益是什麼，以及我們對該特定項目現金流的前瞻性展望是什麼？這將考慮到需要進行的租賃、需要花費的資本以及我們對租金前景的看法。

And as we evaluate those, if we think that the forward-looking return is not all that great at a particular value, then that makes sense is something we should sell. And conversely, we've looked at some where we think the value is pretty attractive. And so that is something that we wind up holding. So we essentially do a wholesale analysis for any potential disposition.

當我們評估這些時，如果我們認為前瞻性回報在特定價值下並不是那麼好，那麼我們就應該出售它。相反，我們也看到一些我們認為其價值相當有吸引力的東西。這就是我們最終堅持的東西。因此，我們基本上對任何潛在的處置進行全面分析。

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

One of the most common questions and concerns about the market that we hear is how to think about the net impact of AI with respect to office space requirements and leasing. Clearly, the AI companies are taking space, but we've seen some additional layoffs from big tech companies that seem to be related to AI displacement. So just wanted to see if you have any thoughts on that net impact of AI?

我們聽到的有關市場最常見的問題和擔憂之一是如何看待人工智慧對辦公空間需求和租賃的淨影響。顯然，人工智慧公司正在佔據市場空間，但我們看到一些大型科技公司也裁員，這似乎與人工智慧取代有關。所以只是想看看您對人工智慧的淨影響有什麼看法？

Yes. Thanks, Blaine. I think this is an important topic to continue to watch and evaluate. I think -- as we look specifically at our markets, you've got a couple of different dynamics that I think are difficult to peel apart. I think it's easy to look at some of the job losses that have been created, particularly coming out of the traditional tech sector, and some of the language that's been used by some of the leaders of those companies to blame AI solely for those job losses.

是的。謝謝，布萊恩。我認為這是一個值得繼續關注和評估的重要主題。我認為——當我們具體觀察我們的市場時，你會發現一些不同的動態，我認為這些動態很難區分。我認為，很容易看出一些已經造成的失業，特別是來自傳統科技業的失業，以及一些公司領導人用來將這些失業完全歸咎於人工智慧的言論。

But I'd also remind everybody that we're coming off of a period where there was certainly some excess hiring that happened in the early days of the pandemic. And so I think it's difficult to disaggregate those things.

但我還要提醒大家，我們才剛擺脫疫情初期出現的過度招募現象。所以我認為很難將這些事情分解開來。

I think the more encouraging thing we're seeing is really company is not just in the tech space, but across broader corporate America, really beginning. And I think we're at the very early stages of this, to talk about AI, not just as an efficiency strategy, but as a growth strategy and an opportunity. And while it's easy potentially in some places and some parts of certain organizations to think about jobs that might be automated as a result of what's happening with AI. It's much more difficult for any of us to really think about our (inaudible) around all the jobs that are going to be created as a result of what's happening.

我認為，我們看到的更令人鼓舞的事情是，公司實際上不僅在科技領域，而是在更廣泛的美國企業領域，才真正開始起步。我認為我們正處於這一領域的早期階段，談論人工智慧不僅是一種效率策略，更是一種成長策略和機會。雖然在某些地方和某些組織的某些部分，人們很容易想到由於人工智慧的發展而可能實現自動化的工作。對於我們任何人來說，真正考慮（聽不清楚）正在發生的事情將創造哪些就業機會變得更加困難。

I'm really pleased with our market positioning as we all sort of begin to watch some of these trends play out and think about how different markets are going to be impacted. It's clear that markets for us, like San Francisco, obviously, most significantly, but including Seattle and including San Diego and to some degree in L.A. are really beginning to benefit from the momentum we're seeing being created by new jobs, new industries, new growth avenues that are coming as a result of AI. So it's certainly something to watch. It's something we need to be very mindful of as it relates to our longer-term capital allocation strategy, but it's also something that I think this portfolio will benefit from in the near to medium term.

我對我們的市場定位感到非常滿意，因為我們都開始關注這些趨勢的發展，並思考不同的市場將如何受到影響。顯然，對我們來說最重要的市場是舊金山，當然也包括西雅圖、聖地牙哥，某種程度上也包括洛杉磯，這些市場都開始受益於人工智慧帶來的新工作、新產業、新成長途徑所創造的動能。所以這絕對是值得關注的事情。我們需要非常注意這一點，因為它與我們的長期資本配置策略有關，但我認為這個投資組合在中短期內也會從中受益。

Okay. Great. That's very helpful. And then just my second question, just touching back on dispositions. I guess, how would you characterize the size of the portfolio that you'd consider as noncore within the KRC portfolio? And are there any specific characteristics you're looking to get away from, whether that's by market or asset quality or otherwise?

好的。偉大的。這非常有幫助。然後是我的第二個問題，只是回到性格問題。我想，您會如何描述 KRC 投資組合中非核心投資組合的規模？您是否希望擺脫某些特定特徵，無論是市場、資產品質或其他方面？

Yes, I'll start, and then I'll turn it over to Eliott to elaborate a little bit more. I think when we think about dispositions across the portfolio, I just start by reiterating, we like all of the markets we're operating in and see potential incremental growth in a number of our markets, including Pacific Northwest, Bellevue and Seattle, including San Diego and obviously, including [Austin] as well. So we see some real growth opportunities in those markets.

是的，我先開始，然後我會把發言權交給艾略特，讓他進一步闡述。我認為，當我們考慮整個投資組合的配置時，我首先要重申，我們喜歡我們運營的所有市場，並且看到我們許多市場都有潛在的增量增長，包括太平洋西北地區、貝爾維尤和西雅圖，包括聖地亞哥，當然也包括[奧斯汀]。因此，我們在這些市場看到了一些真正的成長機會。

We do -- within San Francisco and L.A., we're thinking about how to make sure that our portfolios in those markets are optimally positioned, right? And so we alluded to some of that on the call in terms of making sure that we are exposed to the highest performing submarkets within those core markets, and that will be a major part of how we think about capital allocation going forward.

我們確實如此——在舊金山和洛杉磯，我們正在考慮如何確保我們在這些市場的投資組合處於最佳位置，對嗎？因此，我們在電話會議上提到了其中的一些內容，以確保我們能夠接觸到這些核心市場中表現最好的子市場，這將是我們考慮未來資本配置的重要組成部分。

At the end of the day, however, all of that market commentary aside, it still comes back to what Eliott mentioned earlier, which is an asset-by-asset underwriting and trying to make sure that every dollar of capital we have invested in the portfolio today is going to, from this point forward, earn a return in excess of our cost of capital. And so there is a broader portfolio construction strategy thought process here and making sure we're allocated to submarkets and can deliver the kind of durability and growth we're looking for in the cash flow stream, but we also have to really think about individual asset pricing and where we can or should harvest capital to redeploy into other places.

然而，歸根結底，拋開所有這些市場評論，它仍然回到了艾略特之前提到的內容，即逐項資產承銷，並試圖確保我們今天在投資組合中投資的每一美元資本都將從現在開始獲得超過我們資本成本的回報。因此，這裡有一個更廣泛的投資組合構建戰略思維過程，確保我們分配到子市場並能夠提供我們在現金流中尋求的那種持久性和增長，但我們還必須真正考慮單個資產定價以及我們可以或應該在哪裡收穫資本以重新部署到其他地方。

Yes, not much to add to that. But -- we touched on this a little bit last quarter. We're essentially looking at where our fundamental outlook overlays with where there is capital. And so if we see a good match between where our outlook is a little bit more pessimistic, but there is capital that is taking the other perspective that makes a good disposition candidate for us.

是的，沒什麼好補充的。但是——我們上個季度稍微談到了這一點。我們主要關注的是基本面觀點與資本情況的重疊之處。因此，如果我們看到兩者之間存在良好的匹配，即我們的前景稍微悲觀一些，但有資本從另一個角度看待問題，那麼這對我們來說是一個良好的處置候選人。

Seth Bergey, Citi Group.

花旗集團的 Seth Bergey。

In the prepared remarks, you mentioned that you're kind of getting to the end of some of the larger space givebacks. Just kind of on the leasing pipeline, could you give more color on the types of tenants in the pipeline? Is it predominantly smaller to medium-sized tenants? Or are you starting to see a turn of larger tenants coming back into the market?

在準備好的發言中，您提到您已經完成了一些較大的空間回饋工作。關於租賃管道，您能否詳細介紹一下正在租賃的租戶類型？租戶主要為中小型企業嗎？還是您開始看到大租戶重返市場？

It's Rob Paratte. I think it's sort of across the board. We have larger tenants that we're talking to in different submarkets, and we also have the typical deal size in a market like San Francisco, excluding the big deals, it's probably in the 25,000 to 30,000 foot range, and there's a lot of activity in that range. In San Diego, where we are in North County and (inaudible), deals again tend to be on the 20,000, 30,000, 40,000 foot size range. But if you go to some of the really stellar markets like Bellevue, where we're operating deals are over 100,000 feet.

我是 Rob Paratte。我認為這是全面的。我們正在與不同子市場的大型租戶進行洽談，而且我們在舊金山等市場也有典型的交易規模，不包括大交易，大概在 25,000 到 30,000 英尺的範圍內，並且這個範圍內有很多活動。在聖地牙哥，我們位於北縣（聽不清楚），交易面積往往在 20,000、30,000、40,000 英尺範圍內。但如果你去一些真正著名的市場，例如貝爾維尤，你會發現我們在那裡經營的交易超過 100,000 英尺。

So as the recovery takes hold, you're seeing a pretty wide variety of transaction sizes and types of users. So using San Francisco, as an example, everyone is focused on AI, but law firms, crypto and banks have been quite active in that market. So you've got a blend of [fire] category mixed with technology.

因此，隨著經濟復甦，您會看到各種不同的交易規模和用戶類型。以舊金山為例，每個人都專注於人工智慧，但律師事務所、加密貨幣和銀行在這個市場上非常活躍。因此，您將火災類別與技術進行了混合。

Yes. I mean I think just to add on to that, as Rob said, we're seeing broad-based demand, right, and all sort of size ranges. So one dynamic I'd sort of reemphasize, and we've talked about this on prior calls, is kind of what's happening with some of these tenants that might look like small deals in the San Francisco market, but are actually second, third, fourth expansions of AI tenants that are just growing really rapidly. And when those leases come up for lease renewal or -- they're looking at evaluating the market again in a few years, those are going to be a pretty substantial company.

是的。我的意思是，我認為，正如羅布所說，我們看到了廣泛的需求，對吧，以及各種規模的範圍。因此，我想再次強調的一個動態是，我們在之前的電話會議上討論過這個問題，這些租戶可能看起來像舊金山市場的小交易，但實際上是人工智慧租戶的第二、第三、第四次擴張，而且成長非常迅速。當這些租約到期續約或他們考慮在幾年後再次評估市場時，這些公司將會成為一家相當可觀的公司。

There's a different question between what's the size of execution, what's the size of the company in the market today. Those are sort of disconnected in the market like San Francisco -- San Francisco because of this dynamic with AI companies taking the space they need today, but then growing incrementally over time pretty quickly. So it's an interesting dynamic to watch and to see play out.

執行規模有多大，與當今市場上公司的規模有多大，這是一個不同的問題。這些在舊金山這樣的市場上是有點脫節的——舊金山的這種動態是，人工智慧公司佔據了今天所需的空間，但隨後隨著時間的推移而迅速成長。因此，這是一個值得觀察和見證其發展的有趣動態。

Great. And then I know you don't have direct studio exposure, but just in terms of LA demand. Are you seeing any impact there from the tax incentives for that market?

偉大的。然後我知道你沒有直接的工作室曝光，但只是就洛杉磯的需求而言。您是否看到稅收激勵措施對該市場產生了任何影響？

Not just yet. I mean I think we've seen some encouraging data on production that might be slated to come back to the market over the next couple of years. But it's been too early to see that impact, I think, near-term demand just AI.

還沒有。我的意思是，我認為我們已經看到了一些令人鼓舞的生產數據，這些數據可能會在未來幾年內重返市場。但我認為現在看到這種影響還為時過早，短期需求只是人工智慧。

Caitlin Burrows, Goldman Sachs.

凱特琳·伯羅斯，高盛。

Maybe just back to Flower Mart. I was wondering if you could go through some of the types of conversations that you're having with the city. And I guess the thought is then what's the chance that they go beyond December 31. And to the extent you don't want to specifically comment on that, just kind of what's taken it from a potential of June 30 now December 31. In my kind of what's left in that potential timing that's left?

也許回到花卉市場。我想知道您是否可以談談您與市政府進行的一些對話。我猜他們接下來會考慮的是，他們堅持到 12 月 31 日之後的可能性有多大。如果你不想對此進行具體評論，那麼就從 6 月 30 日到現在 12 月 31 日的可能性來看。在我看來，剩下的潛在時間還有什麼？

Yes. I mean there's still a lot of variables at play here. And so what we're trying to do is provide as much transparency we can when we can provide it. And that's what we did when we initiated guidance this year. There were so many different paths this project could have taken, including, we could have had the city really shut down sort of our hopes that getting greater flexibility and optionality on the site.

是的。我的意思是這裡仍然存在很多變數。因此，我們正在努力在可能的情況下提供盡可能多的透明度。這就是我們今年開始指導時所做的。這個項目可以採取許多不同的路徑，包括，我們可以讓城市真正關閉我們的希望，從而獲得更大的靈活性和可選性。

So what we now know that we didn't know at the beginning of the year is that the city has been very receptive to working with us on a revised program that would allow us, hopefully, and what we're asking for is to maintain a lot of the entitlements we have in place, which is for a very high-density plan that has tremendous amounts of value in the right kind of market while also getting flexibility to change that plan or to modify that plan in a way that's responsive to what the community and the market needs in central (inaudible) and hopefully can allow us to phase the development. So you could see development in central SoMa market earlier than you might have otherwise.

因此，我們現在知道而年初我們並不知道的是，市政府非常樂意與我們合作修改計劃，希望該計劃能夠讓我們，我們所要求的是，保留我們現有的許多權利，即制定一個在合適的市場中具有巨大價值的高密度計劃，同時還能靈活地改變或修改該計劃，以響應中心社區和市場的需求（聽不清），並希望能夠讓我們分階段進行開發。因此，您可以比其他情況更早看到中央 SoMa 市場的發展。

This city has been receptive. We've had conversations with them over the last a couple of quarters, but including some pretty recent conversations, we expect that there will be -- there are additional steps we're going to take here in the back half of the year, and we'll know more and be able to provide additional updates on next quarter's call. But for right now, our current assumption is that some of these efforts are completed by year-end, and we're not assuming any additional capitalization next year, but we will continue to update.

這座城市一直樂於接受。過去幾個季度，我們已經與他們進行了對話，但包括最近的一些對話，我們預計——我們將在今年下半年採取更多措施，我們將了解更多信息，並能夠在下個季度的電話會議上提供更多更新。但就目前而言，我們目前的假設是其中一些工作將在年底前完成，我們不假設明年有任何額外的資本化，但我們將繼續更新。

Got it. And then, Rob, I know you talked in one of -- either the last question or the one before that about the varying sizes of leases that you're seeing in like San Francisco versus San Diego. I guess, as you think about some of the differences of San Francisco versus San Diego, but probably L.A., even more important. I guess, how would you compare and contrast San Francisco versus those other markets? And like what's driving those differences today?

知道了。然後，羅布，我知道你在最後一個問題或上一個問題中談到了舊金山和聖地亞哥之間租賃規模的差異。我想，你會想到舊金山和聖地牙哥的一些差異，但可能洛杉磯的差異更為重要。我想，您會如何比較和對比舊金山和其他市場呢？那麼，如今造成這些差異的原因是什麼呢？

Yes. Caitlin, I think the primary driver in San Francisco sort of starts with the VC funding that's been directed through the city of San Francisco, specifically for AI. And when you couple that with the talent base that's in San Francisco, it just makes a great combination that's creating that demand. We also think that, that demand is going to increase in Seattle. We've already seen NVIDIA and data bricks in our portfolio, and there's no reason that can't continue because that same talent pool is in Seattle/Bellevue.

是的。凱特琳，我認為舊金山的主要動力始於舊金山市引導的創投資金，特別是用於人工智慧的資金。當你將其與舊金山的人才基礎結合時，這就形成了一個創造需求的絕佳組合。我們也認為，西雅圖的需求將會增加。我們已經在我們的投資組合中看到了 NVIDIA 和資料塊，並且沒有理由不能繼續下去，因為同樣的人才庫在西雅圖/貝爾維尤。

Los Angeles is really a bifurcated market again, and we'd like to see more activity on the left side and it to me personally, doesn't make sense why it's been slower. But if you look at the winning submarkets in L.A. right now, there are Central City and Beverly Hills, both of which are doing quite well. Culver City is a third place, sort of active market. When you look at Apple is completing their 500,000-foot campus, that's going to mean continued content production, which I would attribute to sort of related to Hollywood, adjacent to Hollywood. So those are the drivers.

洛杉磯實際上又是一個分叉的市場，我們希望看到左側有更多的活動，對我個人而言，這沒有道理，為什麼它的速度會這麼慢。但如果你看看目前洛杉磯的獲勝子市場，你會發現中心城和比佛利山莊都表現得相當不錯。卡爾弗城是第三大市場，也是一個活躍的市場。當你看到蘋果正在完成其 500,000 英尺的園區時，這意味著將繼續進行內容製作，我認為這與好萊塢有關，毗鄰好萊塢。這些就是驅動因素。

And I think it's -- again, San Francisco, Seattle or innovation on the technology side, in San Diego and again, sort of distinguishing our product from, I'll just say, typical downtown San Diego older high-rise product, we're dealing with companies that have thought leaders that are really developing new and better ways to think. And so you see private banking. You see Boston Consulting Group. You see JPMorgan, some of the big companies that have expanded in our portfolio are doing that because, again, of the talent base.

我認為——再次強調，舊金山、西雅圖或聖地亞哥在技術方面的創新，以及再次強調，我們的產品與聖地亞哥市中心典型的老式高層建築產品有所區別，我們正在與擁有思想領袖的公司打交道，這些公司確實在開發新的、更好的思維方式。所以你會看到私人銀行業務。你看波士頓顧問公司。你看，摩根大通，我們投資組合中的一些大公司之所以擴張，也是因為人才基礎。

And then I'd be remiss to not mention also there's a really robust life science market in San Diego, particularly in UTC and Torrey Pines and Del Mar. So that innovation, although a little bit different than San Francisco because it's life science is something the San Diego benefits from. And I would suspect in the future, you'll see some defense benefits -- defense spending benefits that trickle into San Diego because it's always been a strong defense market.

然後，我還要提到聖地牙哥有一個非常強勁的生命科學市場，特別是在 UTC、托里松和德爾瑪。因此，儘管與舊金山略有不同，但聖地牙哥在生命科學領域的創新卻使其受益匪淺。我認為在未來，你會看到一些國防效益——國防開支效益會流入聖地牙哥，因為它一直是個強大的國防市場。

John Kim, BMO.

約翰金（BMO）。

On KOT 2, I was wondering if you could provide some color on whether or not these tenants are moving into South San Francisco or if they're just expanding or moving around within the submarket? And if you could provide any update on development yields, I think historically, we were looking at this at an 8% plus. I was wondering if that's still on the table.

關於 KOT 2，我想知道您是否可以提供一些信息，說明這些租戶是否正在搬進南舊金山，或者他們只是在子市場內擴張或移動？如果您能提供有關開發收益率的任何更新信息，我認為從歷史上看，我們認為這一收益率應在 8% 以上。我想知道這是否仍在討論中。

John, I will answer the second one, and I'll address the first one. It's Rob. It's a variety. Again, some are in South San Francisco, some are new to market. And all I would say is the most active.

約翰，我將回答第二個問題，並且我將解決第一個問題。我是羅布。它是一個品種。同樣，有些是在南舊金山，有些是新上市的。我想說的就是最活躍的。

If you look at the Bay Area as a whole in terms of life science, the most active submarket or sub portion of the market is South San Francisco and the Peninsula, which is directly adjacent. So again, we'll be able to give you a lot more color when we sign these, but it's a pretty broad spectrum.

如果從生命科學的角度看整個灣區，最活躍的子市場或次市場部分是南舊金山和緊鄰的半島。因此，當我們簽署這些協議時，我們將能夠為您提供更多的細節，但範圍相當廣泛。

Yes. I'll just -- again, on the return point, I addressed this somewhat earlier. I think let us get some of these deals signed and we can give some better updates on how deals are coming together and how things are looking. I think I'd emphasize the project was underwritten pretty conservatively. I think rents look pretty good, but there's certainly more capital in some of these deals than originally contemplated, which reflects not really this project, but what's happened more broadly in life science. So let us continue to get some of this leasing done and we can provide more updates.

是的。我只是——再次，關於回報點，我早些時候已經解決了這個問題。我認為讓我們簽署一些協議，這樣我們就可以更好地更新協議的進展和事情的進展。我想強調的是，該項目的承保相當保守。我認為租金看起來相當不錯，但其中一些交易的資本肯定比最初預想的要多，這反映的並不是這個項目本身，而是生命科學領域更廣泛的情況。因此，讓我們繼續完成一些租賃工作，以便提供更多更新。

Okay. Fair enough. On the Matilda campus sale, can you discuss the alternatives for the campus? I know, Eliott, you mentioned that the CapEx requirement most likely. But was there a direct lease with a subtenant with that's an option for you?

好的。很公平。關於瑪蒂達校園的出售，您能討論一下校園的替代方案嗎？我知道，艾略特，你提到最有可能的是資本支出要求。但是，是否有與轉租人直接租賃的選項可供您選擇？

And how you weigh that versus selling the assets. And also if you could confirm what the cap rate was at back of (inaudible), we get to like a low 8% cap rate, but I was wondering what your perspective was?

以及如何權衡這項選擇與出售資產。另外，如果您可以確認（聽不清楚）背後的資本化率是多少，我們會得到較低的 8% 資本化率，但我想知道您的觀點是什麼？

John, so as I mentioned earlier, we're on a pretty tight NDA, so we're somewhat restricted in what we could talk about here. But I think that you hit on an important point, which we sort of tried to touch on in the prepared remarks, which is the campus today is a little bit more occupied. And as we look forward, it's not going to have that same level of occupancy. So then the question becomes, what does that look like to try to lease it up. And we evaluated a few different scenarios on what that would potentially look like.

約翰，正如我之前提到的，我們簽署了非常嚴格的保密協議，所以我們在這裡可以談論的內容受到了一定限制。但我認為您觸及了一個重要點，我們在準備好的發言中也試圖觸及這一點，那就是今天的校園更加擁擠了。展望未來，它的入住率將不再是原來的水平。那麼問題就變成了，試圖將其租賃出去是什麼樣子的呢？我們評估了幾種可能出現的不同情況。

And in all of those different scenarios, we kind of concluded that to get the $365 million was more advantageous than trying to lease it up, spend the capital and get the kind of rents that we deem as market. So based on all of that, that's kind of how we came to the decision that this was a transaction worth pursuing.

在所有這些不同的情況下，我們得出的結論是，獲得 3.65 億美元比試圖將其租賃、花費資本並獲得我們認為的市場租金更為有利。因此，基於所有這些，我們決定這是一筆值得進行的交易。

Brendan Lynch, Barclays.

巴克萊銀行的布倫丹·林奇。

Angela, it sounds like there could be more demand at (inaudible) coming behind the 100,000 square feet you referenced. Can you provide some color on the prospects that are in the earlier phases of -- turning on planning?

安琪拉，聽起來，除了你提到的 10 萬平方英尺之外，（聽不清楚）的需求可能會更大。您能否提供一些處於規劃初期階段的前景資訊？

Yes. I think it continues to run the gamut in terms of lots of life science and health care adjacent uses both sort of biomedical institutional uses, public biotech, private biotech really kind of across the spectrum. And as I mentioned earlier, we're seeing also good strong demand from more traditional tech uses, some AI uses that have needs of dry lab space. It's really -- it really kind of runs the gamut. So there was definitely a meaningful increase into our activity.

是的。我認為它將繼續涵蓋生命科學和醫療保健相關用途的各個方面，包括生物醫學機構用途、公共生物技術、私人生物技術等各個領域。正如我之前提到的，我們也看到來自更傳統的技術用途的強勁需求，一些人工智慧用途需要乾燥實驗室空間。它確實——它確實涵蓋了所有範圍。因此我們的活動確實有了有意義的成長。

And I think some of the deals that we're working now are building some real momentum in the campus. So we're really encouraged by what's coming behind it, but also very focused on getting this first 100,000 square feet signed and executed.

我認為我們現在正在進行的一些交易正在校園內形成真正的勢頭。因此，我們對即將發生的事情感到非常鼓舞，同時也非常專注於簽署和執行第一個 100,000 平方英尺的專案。

I think I've heard you guys in the past discussed kind of touring moving into kind of designing planning. Is there any other prospects that are in the design planning phase now?

我想我以前聽過你們討論過巡迴轉向設計規劃的問題。目前還有其他處於設計規劃階段的前景嗎？

Yes, certainly. I think we're working with a number of different tenants on space planning behind the ones that are in active lease negotiation. Now we've got sort of prospects from initial tour stage all the way now through lease drafting and negotiations. So we're pleased by how the activity continues to shape up. We're excited to feel a degree of confidence in this project that we can communicate.

是的，當然。我認為我們正在與許多不同的租戶合作進行空間規劃，這些租戶正在進行積極的租賃談判。現在，我們已經從最初的參觀階段一直到租約起草和談判階段獲得了一些前景。因此，我們對活動的持續進展感到高興。我們很高興對這個專案有一定程度的信心，並且可以進行溝通。

We expect at least 100,000 square feet of lease executions in the second half of this year, and we'll continue to work at converting the pipeline that continues to grow at KOP into active leases as we move forward.

我們預計今年下半年的租賃執行面積至少為 100,000 平方英尺，並且我們將繼續努力將 KOP 不斷增長的管道轉化為活躍的租賃。

Upal Rana, [KeyCorp].

烏帕爾·拉納，[關鍵公司]。

Angela, you mentioned the $150 million monetization goal, which you're about halfway there. Given the state of the transaction market, do you anticipate there could be some upside to monetizing more land?

安吉拉，你提到了 1.5 億美元的貨幣化目標，目前你已經完成了一半。鑑於交易市場的現狀，您是否預期更多土地貨幣化會帶來一些好處？

Yes. Look, I think everything -- and I've been pretty clear about this, I think, certainly, internally and externally since I started. We are really working hard at evaluating highest and best uses for every single parcel within the future land bank. We've got some parcels at KOP where we're again excited about what we're seeing and the potential for future growth there. It's clear to us as we talk to tenants, existing project today, and tenants that are looking at Phase II that the growth and scalability of the campus is a key consideration and a key benefit and competitive advantage that KOP has.

是的。瞧，我認為一切——而且我對此已經非常清楚，我想，當然，自從我開始以來，無論是內部還是外部。我們正在努力評估未來土地儲備中每一塊土地的最高和最佳用途。我們在 KOP 擁有一些地塊，我們對那裡所看到的情況以及未來的成長潛力感到非常興奮。當我們與租戶、現有項目以及正在考慮第二階段的租戶交談時，我們清楚地認識到，園區的成長和可擴展性是一個關鍵考慮因素，也是 KOP 的關鍵優勢和競爭優勢。

We've talked about the Flower Mart at length. That's the biggest component of the future land bank. And obviously, we believe the path to value maximizing -- value maximization there is continuing to do what we're doing in terms of expanding. We're providing more flexibility under the entitlements and creating a program that would allow us to phase execution in a responsible way. So we're working on that.

我們已經詳細討論了花卉市場。這是未來土地儲備的最大組成部分。顯然，我們相信價值最大化的道路——價值最大化將繼續我們在擴張方面所做的事情。我們在權利方面提供了更多的靈活性，並創建了一個允許我們以負責任的方式分階段執行的計劃。所以我們正在努力。

So those are two pieces of the future land bank that I would say. I'd sort of put to the side and evaluate differently. Everything else, I think, we're actively looking, thinking about working on trying to make sure we understand highest and best use. And where that highest and best use is not within our core competencies, we're certainly looking at monetizing those parcels. So there's certainly potential for more.

所以我想說，這是未來土地儲備的兩個部分。我會把它放在一邊並做出不同的評價。我認為，其他一切都是我們正在積極尋找、思考並努力確保我們了解最高和最佳用途。如果最高和最佳用途不在我們的核心競爭力範圍內，我們肯定會考慮將這些地塊貨幣化。因此肯定還有更多潛力。

Let us get through the (inaudible) and we'll continue to update and keep you posted on that. But I think we've been really proactive as it relates to addressing that future land bank and acknowledging that in certain circumstances in submarkets the world has changed and where there's higher and best uses, we should respond accordingly.

讓我們度過（聽不清楚），我們將繼續更新並向您通報情況。但我認為，我們在解決未來土地儲備問題上一直非常積極主動，並承認在某些情況下，在子市場中，世界已經發生了變化，在有更高和最佳用途的地方，我們應該做出相應的反應。

Okay. Great. That was helpful. And then on the increase in demand you're seeing in San Francisco, is there an impact of companies who had moved out of the area during the pandemic that are now coming back? Or would you say it's more homegrown demand?

好的。偉大的。這很有幫助。那麼，關於您在舊金山看到的需求成長，那些在疫情期間搬離該地區、現在又回來的公司是否產生了影響？還是您認為這更多的是本土需求？

It's a little bit less of the former in terms of companies that moved out that are coming back. I mean there have been some headlines about that. But a lot of -- a lot of the demand is new company formation or company expansion. When you look at -- this is a Q1 transaction. But if you look at JPMorgan renewing and expanding in south of market. That's a really important happening, I think, in terms of just confidence in the market and confidence in the business opportunities for a bank like that.

從遷出並回歸的公司數量來看，前者略少一些。我的意思是已經有一些關於此的頭條新聞。但很多需求是新公司成立或公司擴張。當你看到—這是 Q1 交易。但如果你看看摩根大通在南部市場的更新和擴張。我認為，就市場信心和銀行商業機會信心而言，這確實是一件重要的事情。

So it's across the board. And I just think companies are going for the talent. They're also going for the quality space that's in the market. And there's a real bifurcation in the vacancy rate that you see, where there's what I call leasable vacancy versus vacancy that's obsolete. And companies that are going to grow like the AI company that we did the deal with the 201 third are going to look for that ability to grow.

所以這是全面的。我只是認為公司追求的是人才。他們也在尋求市場上的優質空間。而空置率確實存在分歧，我稱之為可出租空置率與過時空置率。而那些想要成長的公司，像是我們在 2013 年達成交易的人工智慧公司，都會尋求這種成長能力。

They want a quality building, they want amenities. And that's going to be the attraction for companies coming to the city or those that are already in. And keep in mind, they're all bringing their employees back to work. So they need that type of space.

他們想要高品質的建築，想要便利的設施。這對於即將進駐該市或已進駐該市的公司來說，都具有吸引力。請記住，他們都會讓員工重返工作崗位。所以他們需要那種空間。

Omotayo Okusanya, Deutsche Bank.

Omotayo Okusanya，德意志銀行。

I just wanted to go back to Caitlin's question around Flower Mart. And again, I guess I'm still struggling to understand the change in capitalization exactly what's really driving that? And then second of all, if you do end up with the local government kind of rethinking the project and you kind of get what you want, doesn't that kind of suggest you keep capitalizing in '26, because you're going to probably continue with development along those lines?

我只是想回到凱特琳關於Flower Mart的問題。再說一次，我猜我仍然不明白大寫字母的變化到底是什麼原因造成的？其次，如果最終當地政府確實重新考慮了這個項目，並且你得到了你想要的東西，這是否意味著你會在 26 年繼續利用它，因為你可能會繼續沿著這條路線發展？

Tayo, thanks for the question. I go back to sort of how we started communicating at this when we came out with original guidance. And if you remember what we talked about is knowing that we wanted to pursue more flexible entitlements and to allow the flexibility on site to be able to phase development differently.

Tayo，謝謝你的提問。我回想一下當我們提出最初的指導意見時，我們是如何開始溝通的。如果您還記得我們談論的內容，那就是我們希望追求更靈活的權利，並允許現場靈活性，以便能夠分階段進行開發。

And at that time, it was not perfectly known whether or not that is something that would be palatable to the city or not. And as we've continue -- and so there was a path which we communicated, I think, pretty clearly when we came out with original guidance, where that wasn't palatable to all the different people involved and all the different constituencies. And we probably were pencils down by June 30. And so that was what was embedded in the low end of guidance, right, that we didn't capitalize for the entire second half of the year.

而在當時，人們還不完全清楚這是否會被這座城市所接受。隨著我們繼續前進——我認為，當我們提出最初的指導方針時，我們已經非常清楚地傳達了一條路徑，但這條路徑對於所有參與其中的人和所有不同的選民來說都是不可接受的。到 6 月 30 日，我們可能就用完了所有鉛筆。這就是指導低端所包含的內容，對吧，我們並沒有在整個下半年利用這一點。

Where we stand today is that we do think the city has been -- we've had encouraging conversations with the city. Those conversations are continuing. We continue to work on an active redesign and reimagining of the Flower Mart project. There are some additional steps we need to take in the second half of the year, which we can be more clear about as we take them and those things become public. But at this point, we believe that many of those activities will be done by year-end, and we'll need to stop capitalizing.

我們今天的立場是，我們確實認為這座城市已經——我們已經與這座城市進行了令人鼓舞的對話。這些對話仍在繼續。我們將繼續積極地重新設計和重新構想花卉市場項目。下半年我們還需要採取一些額外的措施，隨著我們採取這些措施並將這些措施公之於眾，我們就能更清楚地了解這些措施。但目前，我們相信許多活動將在年底前完成，我們需要停止資本化。

To your point, there's a path under which we get flexibility and entitlements. And it doesn't -- it still doesn't make sense for us to commence a project at that point. And that's -- if we're not doing additional design work, where we're not doing any of the development work associated with continuing that project per accounting guidance, we'll have to stop capitalizing. If those activities continue, we'll be able to continue capitalizing, but that is a pretty black and white decision, and that relates to the substance of the activities we're taking at the Flower Mart at that point in time at year-end. And we're sitting here today in July, it's still uncertain exactly where we'll be at year-end, and that's why we're committing to transparency here and continuing to communicate clearly about it on next quarter's call and as we move forward.

正如您所說，我們有一條途徑可以獲得靈活性和權利。但對我們來說，在那個時候開始一個專案仍然沒有意義。那就是——如果我們不做額外的設計工作，不按照會計指導進行與繼續該專案相關的任何開發工作，我們就必須停止資本化。如果這些活動繼續下去，我們將能夠繼續利用，但這是一個非常黑白分明的決定，並且與我們在年底那個時間點在花卉市場開展的活動的實質有關。今天是七月，我們仍然不確定年底時的具體情況，這就是為什麼我們致力於保持透明度，並在下個季度的電話會議和未來的發展中繼續清楚地溝通這一點。

That's kind of the best we can do today based on all the information we have available right now.

根據我們目前掌握的所有信息，這可以說是我們今天所能做的最好的事情了。

Michael Carroll, RBC.

邁克爾·卡羅爾，RBC。

I have a quick follow-up on Flower Mart, and I know that was a very detailed explanation, so that was pretty helpful. But how soon do you think you could be willing to start a new development? Like you've got your new entitlement projects, would there be a scenario where you could start a new development, especially if it's a nonoffice build? Or is that something that Kilroy would be willing to do? Or would you want to bring a partner to kind of do that if it's like a different use like a resi use type thing?

我對 Flower Mart 進行了快速跟進，我知道這是一個非常詳細的解釋，所以非常有幫助。但是您認為您多快願意開始新的開發？就像您有了新的權利項目一樣，是否存在可以開始新開發的場景，特別是非辦公室建設？或者這是 Kilroy 願意做的事？或者，如果它是一種不同的用途，例如住宅用途類型的東西，你是否想找一個合作夥伴來做這件事？

There are so many questions embedded in that one question. And I think it's a really insightful and good question. I don't -- we're going to have to evaluate it as we move forward. We're going to have to better understand how the site lays out in totality. How interconnected any residential piece might be with a future office development projects, whether or not we feel like it sort of stands alone and there are control issues across the balance of the site that's selling that parcel would impair the office development or whether or not we can just monetize it entirely.

這個問題裡面隱藏著很多問題。我認為這是一個非常有見地的好問題。我不知道——我們將在前進的過程中對其進行評估。我們必須更好地了解網站的整體佈局。任何住宅部分與未來的辦公室開發項目之間的關聯程度如何，我們是否覺得它是獨立的，以及出售該地塊的整個場地是否存在控制問題，是否會損害辦公開發，或者我們是否可以將其完全貨幣化。

Those are all questions that we'll have to sort through as we continue on the redesign and reimagining of the total plan. So it's just too early at this point. I think, to answer with any greater clarity, but I appreciate the question. And again, I'm committed to being as transparent as we can as we move forward.

當我們繼續重新設計和重新構想整個計劃時，這些都是我們必須解決的問題。所以現在還為時過早。我認為，要回答得更清楚，但我很感謝這個問題。我再次承諾，我們將在前進的道路上盡可能保持透明。

Okay. That's great. That's helpful. And then just lastly, I know in the prepared remarks that you mentioned that there is selective reinvestment opportunities that the company is pursuing after you kind of get these asset sale proceeds. I mean, should we think about this as new real estate type of investments?

好的。那太棒了。這很有幫助。最後，我知道您在準備好的評論中提到，在獲得這些資產出售收益後，公司正在尋求選擇性的再投資機會。我的意思是，我們是否應該將其視為新型房地產投資？

I mean, if that's the case, is this kind of like an acquisition and development opportunities? Or what do those selective reinvestment opportunities look like?

我的意思是，如果是這樣的話，這是否是一種收購和發展機會？或者那些選擇性再投資機會是什麼樣的？

Michael, it's Eliott. So they're kind of all over the board, but not drastically different from the things that we've looked at historically. We're probably less inclined to do spec development. But I think outside of that, any kind of acquisition that has some sort of value-add component or maybe it's a little bit more of a core plus type opportunity, something where we think we can bring some sort of expertise, whether that's leasing expertise or whether that's capital expertise in a market that we think we know well or we think has pretty good growth prospects. And as we sort of alluded to in our remarks, we're -- there are a bunch of those that we're evaluating over several different markets and submarkets and we'll kind of see how they play out.

邁克爾，我是艾略特。因此，它們在整個董事會中都存在，但與我們歷史上所看到的東西並沒有太大的不同。我們可能不太願意進行規格開發。但我認為除此之外，任何具有某種增值成分的收購，或者可能更是一種核心附加類型的機會，我們認為我們可以帶來某種專業知識，無論是租賃專業知識還是我們認為我們很了解或認為具有相當好增長前景的市場的資本專業知識。正如我們在評論中提到的那樣，我們正在對幾個不同的市場和子市場進行評估，看看它們的表現如何。

Dylan Burzinski, Green Street Advisors.

迪倫·布爾津斯基 (Dylan Burzinski)，Green Street Advisors 的顧問。

Appreciate all the comments that you guys have made related to sort of the demand pipeline, turning activity and whatnot. But I guess just one quick one as it relates to sort of new leasing. Obviously, a very strong quarter in 2Q. I mean, do you guys get the sense for that sort of being a good annualized run rate of, call it, new leasing of 1 million square foot on an annualized basis? Or was it maybe one or two large leases that sort of drove that higher this quarter? Can you guys just talk about sort of expectations on the new leasing front?

感謝你們就需求管道、轉變活動等提出的所有評論。但我想就與新租賃相關的一個問題簡單回答。顯然，第二季表現非常強勁。我的意思是，你們是否認為，按年計算，100 萬平方英尺的新租賃量是一個好的年化運行率？或者可能是一兩份大型租賃合約推動了本季租賃價格上漲？你們能談談對新租賃方面的期望嗎？

Yes. Thanks, Dylan. I appreciate it. I do think -- we obviously talked about a growing pipeline and some excitement we have around the acceleration of development portfolio leasing. So we feel really good about that.

是的。謝謝，迪倫。我很感激。我確實認為——我們顯然談到了不斷增長的管道以及我們對加速開發組合租賃的一些興奮。所以我們對此感到非常高興。

As it relates to the balance of the operating portfolio, I think the team is doing an excellent job really across markets at driving new leasing and really focusing on expirations we have in the back half of '22 and into 2026. So I think there's lots of good activity building. I'm hesitant to commit to any specific number, but I think I'm more encouraged than I've been at any point over the last 1.5 years in terms of how leasing is shaping up and the sustainability of the types of demand we're seeing across our core markets. So definitely encouraged and now we have to put our heads down and execute.

就營運組合的平衡而言，我認為團隊在各個市場都做得非常出色，推動了新的租賃，並真正專注於 2022 年下半年和 2026 年的到期租賃。所以我認為有很多很好的活動可以進行。我不願意承諾任何具體的數字，但我認為，就租賃的形成方式以及我們在核心市場看到的需求類型的可持續性而言，我比過去 1.5 年中的任何時候都更有信心。所以絕對受到鼓舞，現在我們必須埋頭苦幹，付諸行動。

Nick Yulico, Scotiabank.

加拿大豐業銀行的 Nick Yulico。

I just wanted to turn back to 2026 expirations. I think at one point, you talked about like a 200,000 square foot expiration and it was a large tenant that you thought would stay, but they could downsize. And I just want to see if you have any update on that or any of the other expirations next year?

我只是想回到 2026 年到期。我想，有一次，你談到了 20 萬平方英尺的租賃合約到期，你認為有一個大租戶會留下來，但他們可能會縮小規模。我只是想看看您是否對此或明年其他到期事項有任何更新？

Yes. No update specifically on that at this point. What I did mention earlier is that we're very focused, especially in those expirations in the first half of 2026, where many of our 2026 expirations are pretty weighted, particularly in the second quarter.

是的。目前尚無關於該問題的具體更新。我之前提到過，我們非常關注 2026 年上半年到期的債券，其中許多 2026 年到期的債券權重相當大，尤其是在第二季。

I do expect that we're going to have a few larger vacates or significant downsizes in that first half of the year time frame. We're actively working on discussions with many of those tenants now. It's just too early to say with finality.

我確實預計，在今年上半年，我們將會有幾次更大規模的撤離或大幅裁員。我們現在正在積極與許多租戶進行討論。現在下結論還為時過早。

Jamie Feldman, Wells Fargo.

富國銀行的傑米·費爾德曼。

So Rob, you may have answered this in a prior response to the question, but I guess on AI specifically, given that it sounds like it's a decent amount of the pipeline, can you talk more about the exact types of buildings, locations, urban versus suburban, floor sizes, power needs, amenities and build-outs we might see for those types of tenants. Is it any different from what you see from a typical tenant end market or in the market?

所以 Rob，你可能已經在之前對這個問題的回答中回答過這個問題了，但我想具體到人工智能，考慮到它聽起來像是相當多的管道，你能否更多地談談具體的建築類型、位置、城市與郊區、樓層大小、電力需求、便利設施以及我們可能會為這些類型的租戶看到的建築結構。它與您在典型的租戶終端市場或在市場上看到的有什麼不同嗎？

Yes. Sure, Jamie. Again, there's sort of a spectrum the younger AI companies are going to look for prebuilt space that's ready to move into, and they're going to look for adjacency in that space, meaning space they can expand into because they're continuing to get funding, they're growing and all that. The power needs are generally along the lines of what office users use because we're not -- most of our tenants that are AI in the company aren't actually using the power per se on site. A lot of that's generated off-site or it's not R&D type space that we're leasing.

是的。當然，傑米。再次，年輕的人工智慧公司會尋找可以隨時入駐的預建空間，並且會尋找該空間內的相鄰空間，這意味著他們可以擴展的空間，因為他們會繼續獲得資金，他們正在成長等等。電力需求通常與辦公室用戶的使用情況一致，因為我們公司中的大多數 AI 租戶實際上並沒有在現場使用電力。其中很多是在場外產生的，或者不是我們租賃的研發類型的空間。

And I think the typical size, if you're looking in San Francisco, having a 30,000-foot floor plate, like we have a (inaudible) is really important. I think, we're not at the point yet where tenants are wanting these 70,000 or 100,000 foot floor plates that they wanted in the last cycle. But 30,000 feet, that's a very clean floor. These companies are no nonsense. So they want -- they like a rectangle.

我認為，如果你看看舊金山，典型的尺寸是，擁有 30,000 英尺的樓板，就像我們擁有的（聽不清楚）一樣，這非常重要。我認為，我們還沒有達到租戶想要上一輪中他們想要的 70,000 或 100,000 英尺樓面的程度。但在 30,000 英尺的高度，地面就非常乾淨了。這些公司可不是胡鬧。所以他們想要——他們喜歡矩形。

They like a central core. They want to have a lot of open space. And the amenities that are important are the same as with any other tenant. It's outdoor space that's usable, it's restaurants, food, beverage, it's fitness either in the building or adjacent to. Some of our -- whatever business centers and things like that are extremely popular and a big draw in fact, at (inaudible), we have some of all of those pieces that become attractive to a tenant.

他們喜歡一個中心核心。他們希望擁有大量的開放空間。重要的便利設施與其他租戶相同。它是可用的戶外空間，有餐廳、食物、飲料，還有健身設施，無論是在建築物內或附近。我們的一些 — — 無論是什麼商務中心和類似的東西都非常受歡迎，而且有很大的吸引力，事實上，在（聽不清楚）我們有一些對租戶有吸引力的東西。

And keep in mind, with the younger company having those amenities on site means that they don't have to build in foodservice, for example, or a conference center or what have you. So it's quite similar to other tech that we've leased to. They are -- they tend to be a little more dense in their use of space, which, as they grow, is going to be a good thing for us and other landlords.

請記住，對於年輕的公司來說，在現場擁有這些設施意味著他們不必建立餐飲服務，例如會議中心或諸如此類的東西。所以它與我們租賃的其他技術非常相似。他們傾向於更密集地利用空間，隨著他們的成長，這對我們和其他房東來說是一件好事。

Yes. I mean the biggest dynamic and just everything Rob just said, that we continue to point out is that these tenants are really looking for flexibility. They're growing very quickly, and they're looking for landlords, but we'll work with them to accommodate that future growth where possible. And so that's been a key focus in terms of how Rob and the team have really gotten to understand exactly what they're looking for.

是的。我的意思是，最大的動態以及羅布剛才所說的一切，我們繼續指出的是，這些租戶確實在尋求靈活性。他們發展得非常快，正在尋找房東，但我們會與他們合作，盡可能適應未來的成長。因此，就 Rob 和團隊如何真正理解他們正在尋找什麼而言，這一直是一個重點。

We're also working really hard, whether it's our spec suite program or in some recent examples, using existing build-outs in space that might have been vacated pretty recently because these tenants are really focused on taking many of them, very focused on taking occupancy as quickly as possible.

我們也非常努力，無論是我們的規格套件計劃，還是最近的一些例子，我們都在利用最近可能已經騰空的現有建築空間，因為這些租戶非常專注於租用其中的許多空間，非常專注於盡快入住。

Those are all really encouraging dynamics for us as a landlord in a market like San Francisco and at this stage of the recovery. So we've really been leaning in and figuring out how to meet those needs as well as we can.

對於我們這些在舊金山這樣的市場中處於復甦階段的房東來說，這些都是非常令人鼓舞的動力。因此，我們一直在努力尋找盡可能滿足這些需求的方法。

Thank you. We have no further questions. And so this concludes our call. Thank you all for your participation, and you may now disconnect your lines.

謝謝。我們沒有其他問題了。我們的通話到此結束。感謝大家的參與，現在您可以斷開線路了。