LXP Industrial Trust (LXP) 2024 Q4 法說會逐字稿

Good morning and welcome to the LXP Industrial Trust fourth quarter earnings call and webcast. (Operator Instructions)

早安，歡迎參加 LXP Industrial Trust 第四季財報電話會議和網路廣播。（操作員指令）

Thank you. I would not like to turn the call over to Heather Gentry. IR, please go ahead.

謝謝。我不想把電話轉給 Heather Gentry。IR，請繼續。

Thank you, operator. Welcome to LXP Industrial Trust's fourth quarter 2024 earnings conference call and webcast. The earnings release was distributed this morning, and both the release and quarterly supplemental are available on our website in the investor section and will be furnished to the SEC on a Form 8K. Certain statements made during this conference call.

謝謝您，接線生。歡迎參加 LXP Industrial Trust 2024 年第四季財報電話會議和網路廣播。收益報告已於今天早上發布，收益報告和季度補充報告均可在我們網站的投資者部分查閱，並將以 8K 表格的形式提交給美國證券交易委員會 (SEC)。本次電話會議中所發表的某些聲明。

Regarding future events, unexpected results may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. LXP believes that these statements are based on reasonable assumptions.

對於未來事件，意外的結果可能構成 1995 年私人證券訴訟改革法案所定義的前瞻性聲明。LXP 認為這些聲明是基於合理的假設。

However, certain factors and risks, including those included in today's earnings press release and those described in reports that LXP files with the SEC from time to time, could cause LXP's actual results to differ materially from those expressed or implied by such statements.

然而，某些因素和風險，包括今天的收益新聞稿中包含的因素和風險以及 LXP 不時向美國證券交易委員會提交的報告中所描述的因素和風險，可能會導致 LXP 的實際結果與此類聲明表達或暗示的結果有重大差異。

Except as required by law, LXP does not undertake a duty to update any forward-looking statements. In the earnings press release and quarterly supplemental disclosure package, [Alexy] has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure.

除法律要求外，LXP 不承擔更新任何前瞻性聲明的義務。在收益新聞稿和季度補充揭露文件中，[Alexy] 已將所有非 GAAP 財務指標與最直接可比較的 GAAP 指標進行協調。

Any references in these documents to adjusted Company FFO refer to adjusted company funds from operations available to all equity holders on a fully diluted basis. Operating performance measures of an individual investment are not intended to be viewed as presenting a numerical measure of LXP's historical or future financial performance, financial position, or cash flows.

這些文件中對調整後公司 FFO 的任何引用均指以完全稀釋的基礎向所有股東提供的調整後公司經營資金。單一投資的經營績效指標不應被視為 LXP 歷史或未來財務表現、財務狀況或現金流量的數值衡量標準。

On today's call, Wilson Eglin, Chairman and CEO; Beth Boulerice, CFO; Brendan Mullinix, CIO, and executive Vice President James Dudley will provide a recent business update and commentary on fourth quarter results. I will now turn the call over to Wil.

在今天的電話會議上，董事長兼執行長 Wilson Eglin； Beth Boulerice，財務長；資訊長 Brendan Mullinix 和執行副總裁 James Dudley 將提供最新的業務更新和第四季業績評論。現在我將電話轉給威爾。

Thanks, Heather. Good morning, everyone. Our fourth quarter results were highlighted by continued favorable leasing outcomes and solid same to our NOI growth. Leasing volume in the quarter of nearly 1 million square feet produced exceptionally strong base and cash-based rental increases of approximately 66% and 43% respectively, excluding a fixed rate renewal.

謝謝，希瑟。大家早安。我們第四季的業績亮點是租賃結果持續良好以及淨營運收入穩定成長。本季租賃量接近 100 萬平方英尺，不包括固定利率續約，基本租金和現金租金分別實現約 66% 和 43% 的強勁增長。

Our fourth quarter performance capped off a great year of accomplishment in our business. On the investment side, we sold our remaining consolidated office assets, opportunistically divested of four industrial assets, and sold our ground lease property in Phoenix, resulting in considerable value creation.

我們第四季的業績為我們業務取得的豐碩成果畫上了圓滿的句號。在投資方面，我們出售了剩餘的綜合辦公資產，伺機剝離了四項工業資產，並出售了位於鳳凰城的土地租賃物業，從而創造了可觀的價值。

We redeployed most of the proceeds into a build to suit and four Class A properties in our Sunbelt markets at attractive pricing. Moving to leasing, we completed 4.5 million square feet of volume and continued to post exceptional market to market outcomes, increasing base and cash-based rents approximately 46% and 40% respectively, excluding TI amortization in one prior lease and one fixed rate renewal.

我們將大部分收益以極具吸引力的價格重新投入到陽光地帶市場的一處定制建築和四處 A 級房產。在租賃方面，我們完成了 450 萬平方英尺的租賃量，並繼續在市場上取得卓越的業績，基本租金和現金租金分別增長了約 46% 和 40%，不包括之前一份租約和一份固定利率續約中的 TI 攤銷。

Additionally, our average annual escalators continue to trend higher, reaching 2.8% at year end, and we achieve strong same store NOI growth of 5% for the year. These results demonstrate the strength of our leasing team and the value of owning high quality assets in our target market.

此外，我們的平均年增長率繼續呈上升趨勢，年底達到 2.8%，並且全年同店淨營業收入實現了 5% 的強勁增長。這些業績證明了我們租賃團隊的實力以及在目標市場擁有優質資產的價值。

On the balance sheet front in the third quarter, we capitalized on a favorable market window and executed forward interest rate swap agreements on $333 million of floating rate debt. These transactions combined with the repayment of $50 million of floating rate term loan debt after quarter end, effectively locked in fixed rates on 97% of our debt through year-end 2026.

在第三季的資產負債表方面，我們利用有利的市場窗口，就 3.33 億美元的浮動利率債務執行了遠期利率互換協議。這些交易加上季末後償還的 5,000 萬美元浮動利率定期貸款債務，有效鎖定了我們 97% 債務的固定利率，直到 2026 年底。

Further, we reduced leverage to 5.9 times net debt to adjusted EBITDA at year end, down from 6.1 times at the end of the third quarter. We are focused on reducing leverage over time by growing EBITDA through the lease up of vacant assets, marking rents to market, and increasing rents with annual escalators.

此外，我們將槓桿率從第三季末的 6.1 倍降低至年底淨債務與調整後 EBITDA 的 5.9 倍。我們致力於透過出租空置資產、按市場價格標記租金以及按年度遞增方式增加租金來增加 EBITDA，從而隨著時間的推移降低槓桿率。

Regarding big-box development leasing in early December, we disclosed that our negotiations with the full building user did not result in a lease at our 1.1 million square foot facility in Ocala, Florida. While this area of our business was slow in 2024, and interest seems to have picked up recently, and we believe some of the uncertainty around space use decisions may be receding.

關於 12 月初的大型開發租賃，我們披露，我們與整棟建築用戶的談判未能達成位於佛羅裡達州奧卡拉 110 萬平方英尺設施的租賃協議。雖然我們業務的這一領域在 2024 年發展緩慢，但最近人們的興趣似乎有所回升，我們相信圍繞空間使用決策的一些不確定性可能會消退。

We currently have activity at all three of our large vacancies for both full and partial users. As industrial fundamentals begin to show signs of improvement, our 2025 outlook remains cautiously optimistic. The markets we operate in, primarily the Sunbelt and Lower Midwest, have experienced more resilient industrial fundamentals relative to select coastal markets.

目前，我們三個大型的職缺均在為全部用戶和部分用戶提供服務。隨著工業基本面開始出現改善跡象，我們對 2025 年的展望仍保持謹慎樂觀。我們經營的市場主要是陽光地帶和中西部南部地區，相對於部分沿海市場，這些地區的工業基本面更為強勁。

We are also encouraged that US manufacturing activity expanded in January after 26 consecutive months of contraction. While we are still operating in an uncertain environment, our below market rents and predominantly Class A portfolio characteristics are positive factors that we expect will continue to enable us to drive strong mark to market rental increases.

我們也感到鼓舞的是，美國製造業活動在連續26個月萎縮後，1月出現擴張。雖然我們仍在不確定的環境中運營，但低於市場的租金和以 A 級為主的投資組合特徵是積極因素，我們預計這些因素將繼續使我們能夠推動強勁的市場租金成長。

In a market environment characterized by a slight to quality. Finally, this morning we announced full year 2025 adjusted company FFO guidance in the range of $0.61 to $0.65 per diluted common share. This guidance, among other factors, is reflective of the disproportionate impact big-box leasing has on funds from operation.

在品質略有下降的市場環境中。最後，今天早上我們宣布了 2025 年全年調整後公司 FFO 指引，範圍為每股攤薄普通股 0.61 美元至 0.65 美元。除其他因素外，該指導意見反映出大型商場租賃對營運資金的不成比例的影響。

The low end of this guidance assumes we do not lease any of the big-boxes in 2025, and the high end represents all three big-box leases executed in the second half of the year. Resolving remaining vacancies is a key operational objective for us that will add considerable earnings growth.

該指引的低端假設我們在 2025 年不會租賃任何大型商場，而高端則代表今年下半年執行的所有三家大型商場的租賃。解決剩餘的空缺是我們的關鍵營運目標，這將帶來可觀的獲利成長。

The building blocks to sustained FFO growth remain intact, including the lease up of 3.7 million square feet. 2.8% average annual rental escalations, mark to market of in-place rents, and a core portfolio positioned in markets that stand to benefit from long-term demographic trends, advanced manufacturing investment, business friendly regulatory environments, and logistics infrastructure.

FFO 持續成長的基礎仍然完好，包括 370 萬平方英尺的租賃。平均每年租金上漲 2.8%，以市價計算現有租金，核心投資組合位於受益於長期人口趨勢、先進製造業投資、商業友善的監管環境和物流基礎設施的市場。

Before I turn the call over to Brendan, I'd like to extend our heartfelt thanks to Beth, who has made immeasurable contributions to our company's success during her tenure as our Chief Financial Officer and in other capacities since joining LXP in 2007.

在我將電話轉給布倫丹之前，我想向貝絲表示衷心的感謝，自 2007 年加入 LXP 以來，她在擔任首席財務官期間以及在其他職位上為我們公司的成功做出了不可估量的貢獻。

As previously announced, Nathan Brunner, who is currently our executive Vice President of Capital Markets, will assume the CFO role on March 1, of this year. Nathan has already proven himself as a tremendous addition to our team, and we are confident that he will hit the ground running in his new role. With that, Brendan will now discuss investment activity in more detail.

正如先前宣布的那樣，現任我們資本市場執行副總裁的 Nathan Brunner 將於今年 3 月 1 日擔任財務長。內森已經證明自己是我們團隊的重要補充，我們相信他將在新的職位上順利工作。接下來，布倫丹將更詳細地討論投資活動。

Thanks, Wil. During the fourth quarter, we acquired four industrial assets for approximately $158 million in Atlanta, Houston, and Savannah. The Class A facilities have an average initial yield of 6% with a weighted average term of 6.3 years and 3.6% average annual escalators.

謝謝，威爾。第四季度，我們以約 1.58 億美元收購了亞特蘭大、休士頓和薩凡納的四項工業資產。A 類貸款的平均初始收益率為 6%，加權平均期限為 6.3 年，年平均成長率為 3.6%。

The properties were built to modern specs with an average age of two years and a building size of approximately 294,000 square feet. These three markets in the Sunbelt have continued to experience positive net absorption and are benefiting from investment in transportation infrastructure and onshoring trends with significant investment in advanced manufacturing facilities, including several large projects nearing completion and operation.

這些房產均按照現代規格建造，平均樓齡為兩年，建築面積約為 294,000 平方英尺。陽光地帶的這三個市場繼續經歷積極的淨吸收量，並受益於對交通基礎設施的投資和在岸化趨勢，對先進製​​造設施進行了大量投資，其中包括幾個即將竣工和運營的大型項目。

Our 6,25,000 square foot Class A build a suit in the Greenville Spartanburg market substantially completed late in the fourth quarter. With an aggregate estimated investment of approximately $74 million and an estimated cash cap rate of a little over 7%.

我們在格林維爾斯帕坦堡市場建造的 625,000 平方英尺 A 級套裝已於第四季末基本完工。總投資預計約為 7,400 萬美元，現金資本化率預計略高於 7%。

The facility is leased for 12 years with 3% escalations and was built to modern specs including 40-foot clear height and the capacity to expand by an additional 174,000 square feet. Rent commenced with a substantial completion of the building in December.

該設施的租賃期為 12 年，租金遞增 3%，按照現代規格建造，包括 40 英尺的淨高和額外 174,000 平方英尺的擴建能力。租金於 12 月大樓基本完工後開始收取。

While we are being selective with respect to new investments, we will evaluate opportunities to unlock value in properties outside of our target markets to make strategic investments in our target markets as we did in 2024.

雖然我們對新投資非常挑剔，但我們將評估釋放目標市場以外的房地產價值的機會，以便對目標市場進行策略性投資，就像我們在 2024 年所做的那樣。

Finally, we sold our interest in the approximately 100-acre Phoenix Grand leaf land parcel upon the exercise of the tenants purchase option late in the fourth quarter. Our share of the sales proceeds was approximately $83 million or $871,000 per acre, representing an approximately $60 million profit over our initial investment in just under three years.

最後，我們在第四季末行使租戶購買選擇權後出售了我們在約 100 英畝鳳凰大葉土地地塊中的權益。我們在銷售收益中所佔的份額約為 8300 萬美元或每英畝 871,000 美元，這意味著我們在不到三年的時間內就比最初的投資獲得了大約 6000 萬美元的利潤。

As a reminder, we acquired the original 415-acre site in the West Valley of Phoenix in 2021 for $101 million for approximately $243,000 an acre. The recent sale of the 100 acres unlocked considerable value and we believe demonstrates the potential to produce additional value from the site over time.

提醒一下，我們在 2021 年以 1.01 億美元的價格收購了位於鳳凰城西谷的原始 415 英畝土地，價格約為每英畝 243,000 美元。最近出售的 100 英畝土地釋放了相當大的價值，我們相信這表明隨著時間的推移，該地塊具有產生額外價值的潛力。

The remaining 315 acres can support as much as approximately 5 million square feet of future industrial spec development and build to suit opportunities with build to suit projects currently our focus. With that, I'll turn the call over to James to discuss leasing.

剩餘的 315 英畝土地可支持多達約 500 萬平方英尺的未來工業規格開發和建設機會，目前我們的重點是建造客製化專案。說完這些，我將把電話轉給詹姆斯討論租賃事宜。

Thanks, Brendan. We're pleased to see that the overall industrial leasing market is beginning to show signs of improvement post-selection. Cushman reported the US net absorption increased a little over 10% quarter over quarter nationally as construction deliveries continue to decelerate.

謝謝，布倫丹。我們很高興地看到，整體工業租賃市場在經過篩選後開始出現改善的跡象。Cushman 報告稱，由於建築交付量持續減速，美國淨吸收量較上季成長略高於 10%。

Our TOP12 markets, which comprise less than 30% of the total inventory nationwide, experienced net absorption of approximately 32 million square feet, making up a significant portion of US net absorption in the fourth quarter.

我們的 TOP12 市場佔全國總庫存的不到 30%，淨吸收量約為 3,200 萬平方英尺，佔第四季美國淨吸收量的很大一部分。

National vacancy ticked up slightly in the fourth quarter but appears to be slowing when compared to the first half of 2024, potentially indicating vacancy could reach peak levels by mid-year 2025. Average national asking rents take slightly higher in the quarter, with annual rent growth relatively flat. Rent growth in our TOP12 markets grew on average just over 1% in the quarter.

第四季全國空置率略有上升，但與 2024 年上半年相比似乎有所放緩，這可能表明空置率可能在 2025 年中期達到高峰。本季全國平均租金略有上漲，年租金成長相對持平。本季度，我們前 12 名的市場的租金平均成長率略高於 1%。

Tenant activity is increasing across our markets, although final decision making remains slow. During the quarter, we address our remaining 2024 lease expirations except for two small vacancies in DFW and Greenville Spartanburg markets, hosting final cash rental growth of approximately 28%, excluding fixed rate renewals on all leases that expired in 2024.

儘管最終決策速度仍然緩慢，但我們各市場的租戶活動都在增加。在本季度，我們解決了剩餘的 2024 年租約到期問題，除了 DFW 和格林維爾斯巴達堡市場的兩個小塊空置空間外，最終現金租金增長約 28%，不包括 2024 年到期的所有租約的固定利率續約。

With respect to vacancies, we expect both facilities to lease in 2025 as they are well positioned in their respective markets and anticipate the average mark to market on these assets to be approximately 45%. We achieved excellent leasing outcomes during the quarter and subsequently illustrating the portfolio's asset quality and value of owning Class A newer products.

關於空置率，我們預計這兩家工廠將在 2025 年出租，因為它們在各自的市場中佔據有利地位，並且預計這些資產的平均市價約為 45%。我們在本季取得了優異的租賃業績，從而彰顯了投資組合的資產品質和擁有 A 類新產品的價值。

On the renewal side, we leased our 150,000 square foot facility in the Chicago market for three years with 4% average annual rental bumps and 118,000 square feet of space at our multi-tenanted facility in Nashville for seven years with 3.5% annual escalators, a cash rental increases of approximately 29% and 111% respectively.

在續約方面，我們在芝加哥市場租賃了150,000平方英尺的設施三年，平均每年租金上漲4%，並在納許維爾的多租戶設施中租賃了118,000平方英尺的空間七年，平均每年租金上漲3.5%，現金租金分別增加約29%和111%。

We also had the tenant in our approximately 400,000 square foot facility in Greenville, Spartanburg exercise their five-year fixed rate renewal at 2% increase over the prior run. In Columbus, we signed a new lease at a 320,000 square foot facility for 10 years with 3.5% rental bumps, which represents a 29% cash rental increase over the prior rent.

我們也讓位於格林維爾和斯帕坦堡約 40 萬平方英尺設施內的租戶執行了五年期固定利率續約，利率較之前增加了 2%。在哥倫布，我們簽署了一份為期 10 年、佔地 32 萬平方英尺的新租約，租金上漲 3.5%，比之前的租金上漲了 29%。

Finally, after quarter end, we renewed a 2026 expiring lease at a 540,000 square foot facility in Phoenix for five years with 3.25% annual rental bumps, representing a 59% cash rental increase over the prior rent. We continue to see attractive market to market opportunities in our portfolio, but the current market to market estimated to be approximately 20% through 2030 based on brokers' estimates.

最後，在季度末之後，我們續簽了位於鳳凰城一座 54 萬平方英尺設施的 2026 年到期租約，租期為五年，每年租金上漲 3.25%，比之前的租金增加了 59%。我們的投資組合中繼續存在著頗具吸引力的市場對市場機會，但根據經紀人的估計，到 2030 年，目前的市場對市場比例預計約為 20%。

And looking more specifically at 2025, we've already addressed about 37% of the role. On the remaining 2025 exploration, which represents a little less than 4% of our ABR, we estimate the current mark to market to be in the range of 30% to 35%.

更具體地展望 2025 年，我們已經解決了大約 37％ 的角色。對於剩餘的 2025 年勘探工作（占我們 ABR 的 4% 以下），我們估計目前的市價在 30% 到 35% 之間。

We're in current negotiations on several 2025 expirations, but in an environment of uncertainty and delayed decision making, tenant retention could be lower this year, and realizing market rents may involve greater periods of downtime.

我們目前正在就幾項 2025 年到期的租賃協議進行談判，但在不確定和決策延遲的環境下，今年的租戶保留率可能會更低，而實現市場租金可能會涉及更長的停工期。

We're positioned well to benefit from the potentially more stable leasing environment as we move into 2026 and 2027, where we have significantly higher percentage of leases expiring. With that, I'll turn the call over to Beth to discuss financial results.

隨著我們進入 2026 年和 2027 年，我們將能夠從可能更穩定的租賃環境中受益，屆時我們的租約到期比例將顯著提高。說完這些，我將把電話轉給貝絲，討論財務結果。

Thanks James. Total gross revenues in the fourth quarter were approximately $101 million which included $15 million of additional revenue from a sales type lease due to the exercise of the purchase option at our Phoenix ground leased assets.

謝謝詹姆斯。第四季的總收入約為 1.01 億美元，其中包括因行使我們鳳凰城地面租賃資產的購買選擇權而從銷售型租賃中獲得的 1500 萬美元額外收入。

Our fourth quarter property operating expenses were about $15 million of which 89% was attributable to tenant reimbursements. Adjusted company FFO in the fourth quarter was $0.16 per diluted common share or approximately $47 million with full year 2024 adjusted company FFO of $0.64 per diluted common share.

我們第四季的物業營運費用約為 1500 萬美元，其中 89% 歸因於租戶償還費用。第四季調整後公司 FFO 為每股稀釋普通股 0.16 美元，約 4,700 萬美元，2024 年全年調整後公司 FFO 為每股稀釋普通股 0.64 美元。

As mentioned earlier, our 2025 adjusted company FFO guidance range is $0.61 to $0.65 per diluted common share. In addition to leasing assumptions, this guidance includes the impact of higher interest expense on our term loans, with the all-in rate increasing from approximately 2.7% to approximately 4.3%, lower interest income on cash on the balance sheet, and less benefit from the capitalization of interest given the substantial completion of our development projects in 2024.

如前所述，我們 2025 年調整後公司 FFO 指引範圍為每股攤薄普通股 0.61 美元至 0.65 美元。除了租賃假設之外，該指引還包括定期貸款利息支出增加的影響，全包利率從約 2.7% 上升至約 4.3%，資產負債表上現金的利息收入減少，以及鑑於我們的開發項目在 2024 年基本完工，利息資本化帶來的收益減少。

G&A was approximately $10 million in the quarter, with our 2024 G&A coming in within our expected range at $40 million. We expect 2025 G&A to be within a range of $39 million to $41 million. Our same store portfolio was 99.5% leased at quarter end, and same store NOI increased 4.1% in the fourth quarter when compared to the same period in 2023.

本季的 G&A 約為 1000 萬美元，而 2024 年的 G&A 將達到我們預期的 4000 萬美元。我們預計 2025 年的 G&A 費用將在 3,900 萬美元至 4,100 萬美元之間。截至季末，我們的同店組合出租率為 99.5%，與 2023 年同期相比，第四季同店淨營業收入成長了 4.1%。

At quarter end, approximately 98.5% of our portfolio leases had escalations, with an average annual rate of 2.8%. With respect to 2025, we are estimating same store NOI growth to be within a range of 3% to 4%, which considers a range of leasing assumptions.

截至季末，我們約 98.5% 的投資組合租賃均出現升級，年平均升級率為 2.8%。考慮到一系列租賃假設，我們預計 2025 年同店淨營業收入成長率將介於 3% 至 4% 之間。

At year end, our total consolidated debt outstanding was approximately $1.6 billion with a weighted average interest rate of 3.68% and a weighted average term to maturity of 5.5 years. Subsequent to year end, we repaid $50 million on our term loan, and our $600 million unsecured credit facility remains fully available. With that, I'll turn the call back over to the operator who will conduct the question-and-answer portion of this call.

截至年底，我們的合併債務總額約為 16 億美元，加權平均利率為 3.68%，加權平均到期期限為 5.5 年。年底之後，我們償還了 5000 萬美元的定期貸款，並且 6 億美元的無擔保信貸額度仍然可用。說完這些，我將把電話轉回給接線生，接線員將負責本次通話的問答部分。

Thank you. We will now begin the question-and-answer session. Again, if you'd like to ask a question this time, simply press star followed by the number one on your telephone keypad.

謝謝。我們現在開始問答環節。再次，如果您這次想要提問，只需在電話鍵盤上按下星號，然後按數字 1 即可。

And our first question comes from the line of Todd Thomas with KeyBanc Capital Markets. Todd, please go ahead.

我們的第一個問題來自 KeyBanc Capital Markets 的 Todd Thomas。托德，請繼續。

Hi, good morning. I just wanted to touch on some of the larger boxes, the developments. Sounds like there's some additional interest there. Can you just elaborate a little bit, further and discuss, the environment a little bit and whether the type of users interested has changed.

嗨，早安。我只是想談談一些較大的問題和發展。聽起來那裡還有一些額外的興趣。您能否進一步詳細說明並討論環境以及感興趣的使用者類型是否發生了變化。

And then also through this cycle, are you seeing any change in the stabilized yield expectations, relative to the 6% to 6.5% I think that you were, previously that you that you've been targeting for those projects.

然後同樣通過這個週期，您是否看到穩定收益預期有任何變化，相對於您之前為這些項目設定的 6% 到 6.5% 的目標？

Todd. This is James. I'll take the first part of that question and let Brendan touch on the yield piece, but we were very excited to see the activity that we've seen in January. Looking back to last year, activity was really slow, kind of across the markets through mid-February and for example, in Indy, we had three tours over two days in early January.

托德。這是詹姆斯。我將回答該問題的第一部分，讓布倫丹談談收益部分，但我們非常高興看到一月份的活動。回顧去年，整個市場到二月中旬的活動都非常緩慢，例如在印第安納波利斯，我們在一月初的兩天內進行了三次巡迴演出。

And it seems like there are a lot more tire kickers. We still need to see leases get signed. There was one lease that got signed recently in that market, that submarket in particular. We've seen a couple of transactions in the Greenville market too that give us hope that they're real and that we're going to move some transactions along.

看起來，有更多的人對此不以為然。我們仍然需要看到租約的簽署。該市場，特別是該子市場最近簽署了一份租約。我們也看到了格林維爾市場的一些交易，這讓我們相信它們是真實的，而且我們將推動一些交易。

As far as the type of tenants, it's still pretty broad. We have some construction-based tenants. We have some e-commerce tenants. We've got 3PLs kicking the tires. So again, kind of a broad range of different types of tenants looking at the space, but it does feel different than last year and the back half of last year as far as activity. And as these deals start to get signed in the markets, hopefully it pushes some of these tenants that have been ready to make a decision off the sidelines into making a decision.

就租戶類型而言，還是比較廣泛的。我們有一些從事建築業的租戶。我們有一些電子商務租戶。我們已讓 3PL 進行測試。所以再次強調，有各種各樣的租戶正在關注這個空間，但就活動而言，感覺與去年和去年下半年確實有所不同。隨著這些協議開始在市場上簽署，希望它能推動一些已經準備好做出決定的租戶做出決定。

And then with respect to yield expectations, as was just discussed, the balance of what remains to lease in the development pipeline is really concentrated in these larger buildings which remains a more competitive part of the market from a supply standpoint.

然後就收益預期而言，正如剛才所討論的，開發管道中剩餘待租賃的平衡實際上集中在這些較大的建築中，從供應的角度來看，這些建築仍然是市場上更具競爭力的部分。

I would estimate that this remaining balance to leave these larger buildings stabilize around 6% and that prior guidance to I'll note also included the stabilization of the [Aetna] project that we recently stabilized at much higher yields.

我估計，這些較大的建築的剩餘餘額將穩定在 6% 左右，我注意到，先前的指導還包括穩定我們最近以更高的收益率穩定的 [Aetna] 項目。

Okay. That's helpful and then I wanted to just ask about the comments around lower tenant retention. You talked about, I think previously, move out early in the year, I think around 125,000 square feet and then another larger July 1, is that what you're referring to or is there some additional known move out activity non-renewals that you're aware of or is that just you know some additional.

好的。這很有幫助，然後我想問一下有關降低租戶保留率的評論。您之前提到過，我想是在年初搬出，大約有 125,000 平方英尺，然後是另一個更大的 7 月 1 日，這是您所指的嗎，或者您是否知道一些其他已知的搬出活動不續約，或者您只是知道一些額外的。

Conservatism that's sort of, embedded in the guidance. I mean, what kind of renewal rate are you assuming as you work through the balance of the 25 expirations?

保守主義在某種程度上已經融入了指導之中。我的意思是，當您處理 25 個到期日的餘額時，您假設的續訂率是什麼樣的？

So, a couple of things. One, there is one known move out that we would add to that list. You mentioned the 124 that's in Northwest Atlanta. There's also a 248 in Houston that's currently leased to a 3PL through April that we know is going to move out. We've had some good activity on that space and then you referred to the contraction option that we have in Richmond with Philip Morris and we're working through getting that property ready to go back and lease.

因此，有幾件事。首先，我們將把一個已知的舉動加到這個清單中。您提到了位於亞特蘭大西北部的 124。休士頓還有一家 248 號工廠，目前已租給一家 3PL 公司，租期到 4 月份，我們知道這家工廠將要搬走。我們在該領域開展了一些良好的活動，然後您提到了我們與菲利普莫里斯在里士滿達成的收縮選擇，我們正在努力準備將該房產返還並出租。

The good news is on the Houston asset and on the Philip Morris asset we expect really strong market to market on both of those. And then the balance of the commentary is just really about being conservative. The majority of what we have is in the back half of the year. And we're not exactly sure how it's going to play out, but we don't have the same certainty that we had on some of the 2024 outcomes going into 2025.

好消息是，關於休士頓資產和菲利普莫里斯資產，我們預計這兩個資產的市場對市場都會非常強勁。那麼評論的平衡其實就是保守的。我們大部分的工作都發生在下半年。我們並不完全確定事情會如何發展，但我們對 2025 年的一些結果並不像 2024 年那樣有那麼大的確定性。

Okay alright, thank you.

好的好的，謝謝。

And our next question comes from the line of Vince Tibone with Green Street. Vince, please go ahead.

我們的下一個問題來自 Green Street 的 Vince Tibone。文斯，請繼續。

Hi, good morning. Could you elaborate a little bit further on just a competitive landscape for each of your million square foot development projects, specifically, how many buildings are you really competing against for tenants in each market, submarket, any further color there would be very helpful.

嗨，早安。您能否進一步詳細說明您每個百萬平方英尺開發案的競爭格局，具體來說，在每個市場、子市場中，您真正與多少棟建築競爭租戶，進一步的詳細說明都會非常有幫助。

Sure, Vince, this is James again. So, I'm going to Indy first there are 10 buildings over 500, we call it 550,000 square feet in our submarket, [4/944]. So, it's really if we're competing for a single tenant a million square footer, we have four other competitors, so we're one of five, and if we're kind of looking at cutting the building, then it jumps up to being one out of 11.

當然，文斯，我又是詹姆斯。我首先要去印第安納波利斯，那裡有 10 棟建築，面積超過 500 平方英尺，我們稱之為 55 萬平方英尺的子市場，[4/944]。因此，如果我們要競爭一個一百萬平方英尺的租戶，我們就會面臨另外四個競爭對手，所以我們是五個競爭對手之一，如果我們考慮削減建築面積，那麼我們就會躍升至十一個競爭對手之一。

Greenville, the market's a little bit tighter there from a competitive perspective, and we did have a couple of good outcomes there where we had a 3PL lease, one of our 1 million square foot competitors in Gaffney, and we had another competitor come off the market that sold to a tenant. So real competition there is only a handful if you're talking about millions, a million square foot users call it, being one of five.

從競爭的角度來看，格林維爾的市場稍微緊張一些，我們在那裡確實取得了一些好的結果，我們有一個 3PL 租約，我們在加夫尼的 100 萬平方英尺的競爭對手之一，而我們還有另一個競爭對手退出市場並賣給了租戶。因此，如果談論的是數百萬，那麼真正的競爭對手只有少數，一百萬平方英尺的用戶稱之為五分之一。

There is some sublease space on the market that would add to that, but it's got some functional obsolescence, and we don't really consider it to be competition. And then kind of looking into Central Florida, it really depends on how big of a geography you want to look at there, but it's again it's a handful of buildings in our direct market we really only have one that we compete with, but if you expand it and kind of take in Plant City and the [I-4 corridor], then it grows to be about five.

市場上有一些轉租空間可以增加這個數量，但其功能已經過時，我們並不認為它們構成競爭。然後看看佛羅裡達州中部，這實際上取決於你想看那裡的地理面積有多大，但在我們的直接市場中，我們只有少數幾座建築與我們競爭，但如果你擴大它並把普蘭特城和[I-4 走廊]也算進去，那麼它就會增長到大約五座。

That's super a color. I appreciate that maybe just switching gears. Can you talk about kind of what's the near-term capital allocation plan just given, the discount NAV currently, how are you thinking about, buying and selling, capital recycling, any additional development potentially, yeah, I just love to get your thoughts there.

這顏色太棒了。我很感激，也許只是換個話題。您能否談談剛剛給出的近期資本配置計劃，目前的折扣資產淨值，您如何考慮買賣，資本循環，以及任何潛在的額外發展，是的，我很想听聽您的想法。

Sure, well, last year we did some sales out of non-core markets. There may be a little bit of that going forward we are focused on the 12 markets. We would expect to put more capital to work in, on, with respect to land that we own, we would be interested in building the suit because there's a yield premium there, but beyond that it's a priority for us to work our leverage down to 5 times. We think that that's, key in terms of improving our evaluation.

當然，去年我們在非核心市場進行了一些銷售。未來我們可能會更關注這 12 個市場。我們希望投入更多的資本，就我們所擁有的土地而言，我們有興趣建造該套裝，因為那裡有收益溢價，但除此之外，我們的首要任務是將槓桿率降至 5 倍。我們認為，這是提高評估水準的關鍵。

Thank you.

謝謝。

(Operator Instructions) And your next question comes from the line of James Kammert with Evercore ISI. James, please go ahead.

(操作員指示) 您的下一個問題來自 Evercore ISI 的 James Kammert。詹姆斯，請繼續。

Thank you, good morning. Well, your comment that obviously the low end of guidance, there's no presumed leasing on the least developed properties, and then are you into making maybe half sort of lease up to get to the higher end of guidance and then more in the second half of the year? Is that a reasonable assumption?

謝謝，早安。那麼，您的評論顯然是指導的低端，沒有假定對開發程度最低的房產進行租賃，那麼您是否會將大概一半的租賃量提高到指導的高端，然後在下半年提高更多？這是一個合理的假設嗎？

Yes, James, that's exactly right.

是的，詹姆斯，完全正確。

Okay, and then, I was also just trying to think you've got $0.14, par $0.16 coming run rate out of the fourth quarter, $0.64 annualized. I realize they're offsets, but you know how much, I guess, relating to the earlier question of sort of headwind to get kind of lower end of your guidance, you, what are some of those bigger headwinds just remind me because it seems like a fairly sharp drop off just trying to make sure I've got all the pieces.

好的，然後，我還想知道您獲得了 0.14 美元，第四季度的票面利率為 0.16 美元，年化利率為 0.64 美元。我知道它們是抵消，但你知道，我猜，與之前的問題有關，即逆風會給你帶來多少指導下的下限，你提醒我，哪些更大的逆風是最重要的，因為這似乎是一個相當急劇的下降，只是想確保我得到了所有的部分。

Hey, James, this is Beth. Sure, one of the things is interest expense. So, our net interest expense is going up a little over a penny relating to the 2024 bond refi and also due to the step up in the swap on our term loan if you remember.

嘿，詹姆斯，這是貝絲。當然，其中之一就是利息費用。因此，如果您還記得的話，我們的淨利息支出將略微增加一美分，這與 2024 年債券再融資有關，也是由於我們的定期貸款掉期增加所致。

Our term loan was at 2.7 and now it's going up to 4.3%, so there's a spread there and also capitalized interest of about a penny is also being reflected in the guidance that's coming down because we did the substantial completion of our development projects last year. So those are that's the other piece that I think maybe you didn't have.

我們的定期貸款利率為 2.7%，現在已上漲至 4.3%，因此存在利差，而且約一美分的資本化利息也反映在即將下降的指引中，因為我們去年基本上完成了開發項目。所以，我認為這可能是你沒有的另一部分。

Yeah, that's all. Thank you appreciate it.

是啊，就這些。謝謝您欣賞。

And your next question comes from the line of Mitch Germain with Citizen JMP. Mitch, please go ahead.

您的下一個問題來自 Citizen JMP 的 Mitch Germain。米奇，請說。

Hi, this is Jody on Vermeer. Just a quick question here now that the Phoenix purchase option is exercised, what are the discussions around the land bank? I think you mentioned there.

你好，我是 Vermeer 的 Jody。現在鳳凰購買選擇權已經行使，這裡有一個簡單的問題，關於土地儲備的討論進展如何？我想你在那裡提到過。

Yeah, that's correct. As we said, the focus remains on build a suit. So, in Phoenix we've continued to respond to Build a suit inquiry there and I would say of the of the entirety of the land bank there's the most activity has been there in Phoenix, and that's where I would anticipate our next bill to [suitwer].

是的，正確。正如我們所說，重點仍然在於打造西裝。因此，在鳳凰城，我們繼續回應那裡的訴訟調查，我想說，在整個土地儲備中，鳳凰城的活動最多，我預計我們的下一個法案將在那裡[西裝革履]。

Okay, thank you.

好的，謝謝。

(Operator Instructions) I will not turn the call over to Wil Eglin for closing remarks, Wil.

（操作員指示）我不會將電話轉給威爾·埃格林 (Wil Eglin) 來做結束語，威爾。

Okay, thanks to all of you for joining us this morning. Please visit our website or contact Heather Gentry if you would like to receive our quarterly materials. And in addition, as always, you may contact me or the other members of our senior management team with any questions. Thanks again and have a great day.

好的，感謝大家今天早上加入我們。如果您想收到我們的季度資料，請造訪我們的網站或聯絡 Heather Gentry。此外，與往常一樣，您可以就任何問題聯繫我或我們高階管理團隊的其他成員。再次感謝並祝您有愉快的一天。

That concludes today's call. Thank you all for joining you may now disconnect.

今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線。