Pure Cycle Corp (PCYO) 2025 Q4 法說會逐字稿

Okay. Good morning, everyone, and welcome to Pure Cycle's Year End Investor Presentation. If you please mute your line as Mark Harding goes through the present and then at the end, we have a video, and then we'll open it up to Q&A. So with that, I'll hand it off to Mark Harding.

好的，各位早安，歡迎參加Pure Cycle的年終投資者報告會。請各位在Mark Harding進行報告時將麥克風靜音，報告結束後我們會播放一段視頻，之後會進入問答環節。那麼，現在就交給Mark Harding吧。

Thank you. Thank you, Marc. Welcome, everyone. We're delighted to share with you our fiscal 2025 earnings presentation this morning. With me today is our CFO, Marc Spezialy; and our Controller, Cyrena Finnegan.

謝謝。謝謝馬克。歡迎各位。我們很高興今天上午與大家分享我們2025財年的收益報告。今天與我一同出席的有我們的財務長馬克·斯佩齊亞利和財務總監西雷娜·芬尼根。

So if you have any tough questions, we'll have them help weigh in on the answers for all that. But we really are excited to give you kind of some insights as to how we were working through the fiscal year, and it's been an exciting year in a couple of fronts that we'll detail. First, I want to get the lawyers out of the room and remind everybody that this presentation includes forward-looking statements. I'm pretty sure you're all familiar with the forward-looking statement caveat in this. So with that, we'll get to highlighting the important thing.

所以，如果您有任何棘手的問題，我們會請他們幫忙解答。但我們非常高興能與大家分享我們本財年的工作情況，這一年我們在幾個方面都取得了令人振奮的成果，我們將在下文中詳細介紹。首先，我想請各位律師離開，並提醒大家，本次簡報包含前瞻性陳述。我相信大家都熟悉關於前瞻性陳述的免責聲明。那麼，接下來我們將重點討論一些重要內容。

The most important thing is I get the privilege of working with just an outstanding team of professionals. Marc, together with Cyrena and then those folks that kind of grind out day in and day out to make sure that our -- we stay on track and really have a good customer experience in all three of our business segments. So great to work with them. And then just to remind everybody that we punch above our weight with our advisers and our Board of Directors. We've got a great team, highly experienced and specialized Boards of Directors that continue to really emphasize how best-in-class performance is for each of our business segments.

最重要的是，我有幸與一支傑出的專業團隊共事。馬克、西雷娜，以及其他日復一日辛勤工作的同事們，他們確保我們始終朝著正確的方向前進，並在我們三大業務板塊都提供卓越的客戶體驗。與他們共事真是太棒了。此外，也要提醒大家，我們的顧問和董事會實力雄厚，遠超預期。我們擁有一支優秀的團隊，以及經驗豐富、專業精湛的董事會，他們始終致力於確保我們每個業務板塊都達到行業領先水平。

So we're privileged to work with a great team. And you, from a shareholder standpoint, should get a lot of comfort as to the continuity and really the caliber of the company's Management and Directors. Let me start out with kind of some of the themes for this presentation. And I'd say continued profitability where you've got 25 straight quarters of profitability and this quarter and this year is no different. Really continued growth in each of the revenue segments, especially in the recurring revenue segments, and that's really one of the most important components of what it is that we're doing, building a stable earnings from both water and wastewater, our land development side, our rental income from our single-family homes.

我們很榮幸能與如此優秀的團隊共事。作為股東，您應該對公司管理階層和董事的穩定性和卓越素質感到非常放心。首先，我想談談本次演講的一些主題。我想說的是持續獲利，我們已經連續25個季度獲利，本季和今年也不例外。各個收入板塊都實現了持續成長，尤其是在經常性收入板塊。這正是我們業務的關鍵所在：在供水和污水處理、土地開發以及獨棟住宅租賃收入等方面，我們都在努力建立穩定的獲利模式。

So terrific continued growth in that. Also, in our land development, resiliency, our business model. And when you see changing market dynamics as we've seen this year, you stress test your business model. And one of the things that we're going to highlight is kind of the flexibility of our business model to be able to risk on, risk off, turn the volume up, turn the volume down to really match our customers' needs in that segment. And that's the most -- that's the highest delivery segment for that.

因此，這方面持續維持了強勁成長。此外，我們在土地開發、韌性以及商業模式方面也表現出色。正如我們今年所見，當市場動態發生變化時，我們會對商業模式進行壓力測試。我們將重點強調的一點是我們商業模式的靈活性，能夠根據客戶在該細分市場的需求靈活調整風險，提高或降低產量。而這正是我們交付量最大的細分市場。

So that flexibility continues to demonstrate its use and its resiliency in our business model. And then our capital position and liquidity, continued strong stewardship of shareholder capital. So we'll continue to emphasize those positions and make sure that we have a solid foundation for delivering results year-over-year. Okay. With that, let's dive right into the Q4 results.

因此，這種靈活性在我們的商業模式中持續發揮作用，並展現出強大的韌性。此外，我們的資本狀況和流動性，以及對股東資本的持續穩健管理，也至關重要。我們將繼續強調這些優勢，確保我們擁有堅實的基礎，從而實現逐年業績成長。好的。接下來，讓我們直接進入第四季業績分析。

And as all of you know, our Q4 is typically our strongest quarter, and that has a lot to do with seasonality and really how we deliver because of the -- our weather conditions here in Colorado, concrete and asphalt paving really do cycle themselves into making sure that you get that down before our winter season. Our perfect cycling would be kind of Q1, end of November, but our year-end happens to be end of August. So sometimes that works to our advantage. Sometimes things spill over from year-over-year. So revenue for Q4, again, it was our highest quarter, slightly down, mostly due to the housing headwinds and pushing some of that revenue recognition from our percent completion into Q1 2026.

如大家所知，第四季度通常是我們業績最好的季度，這很大程度上與季節性因素以及我們的交付方式有關——科羅拉多州的天氣狀況，以及混凝土和瀝青鋪設的周期性變化，都確保我們在冬季來臨之前完成這些工作。我們理想的周期是在第一季末，也就是11月底，但我們的年終結算在8月底。所以有時候這反而對我們有利。有時候，有些因素會延續到去年同期。因此，第四季度的收入再次創下新高，略有下降，主要是由於房地產市場不利因素，以及我們將部分已完成項目的收入確認推遲到2026年第一季。

So both revenue and gross profit up, but slightly off from what we saw in 2024. Taking a look at net income and earnings per share, again, profit margins are still remaining. And really, that is some of the diversity to the company's revenue streams, and we'll talk a little bit more about that. But Q-over-Q in Q4, again, our highest quarter and solid performance on both our net income and earnings for the quarter. So let's take a look at kind of how that normalizes itself for the overall year-end performance.

因此，營收和毛利均有所成長，但略低於我們2024年的預期。再來看淨利和每股收益，利潤率仍保持穩定。這確實體現了公司收入來源的多元化，我們稍後會詳細討論。第四季季比表現依然出色，是我們業績最高的季度，淨利和每股盈餘都表現穩健。接下來，讓我們來看看這些成長對全年整體業績的影響。

Year-end, slightly below expectations. And again, that was mostly due to the headwinds of housing pushing some of the percent complete. And so as most of you know, we operate on a percent complete because we develop lots over about a year's delivery schedule. Sometimes that works within our fiscal year, sometimes that carries over. And last summer, I think what we look to do is really dial up some of those deliveries.

年末業績略低於預期。這主要是由於房屋市場不利因素導致部分工程完工率下降。如大家所知，我們以完工率來衡量專案進度，因為我們的開發週期大約是一年。有時這個週期能在我們的財政年度內完成，有時則會延續到下一個財政年度。去年夏天，我們著手加快部分專案的交付速度。

So we had as many as three different phases of our land development going on at the same time, delivering what we were looking for in 2024 and then having two phases in 2025 and spilling over into 2026, delivering at the same time. So strong results again, but slightly below expectations on revenue and gross profit. But then moving into kind of the thing that matters the most is our net income and earnings per share, which actually exceeded our expectations. So again, the most important metric is earnings per share, slightly above what our forecast was. And that's largely due to oil and gas royalty income coming in much stronger than projected.

因此，我們的土地開發項目同時進行多達三個階段，在2024年完成了我們預期的目標，然後在2025年完成了兩個階段，並延續到2026年，同時交付成果。所以，業績依然強勁，但營收和毛利略低於預期。然而，最重要的指標是淨收入和每股盈餘，這兩個指標實際上都超出了我們的預期。再次強調，最重要的指標是每股盈餘，略高於我們的預測。這主要是由於油氣特許權使用費收入遠超預期。

And the reason for that was we had the completion of an additional six or seven wells into the largest portion of our royalty estate and those wells came online and started producing in 2025. And that really did exceed that expectation. We knew that those were there, but you never have clear visibility as to the price of oil and then how that's going to result in. And so one of the things that we continue to show is that diversity of revenues to the company where we have multiple shots on goal here and are able to drive revenue and earnings from our assets in a number of different ways. Let me go over kind of the earnings bridge of where that -- where the headwinds and tailwinds came in from each of the revenue sources.

原因在於，我們在最大的特許權使用費礦區完成了六、七口新井的鑽探，這些井於2025年投產。這確實超出了預期。我們知道這些井的存在，但油價走勢以及最終結果永遠無法完全預測。因此，我們持續展示的優勢之一就是公司收入來源的多元化，我們擁有多種途徑，能夠以多種方式從我們的資產中獲取收入和利潤。接下來，我將簡要介紹各個收入來源的獲利情況，以及它們各自面臨的優缺點。

So our forecasted net income was right around $12.5 million, slightly lower revenue from our land development segment, and that wasn't that we lost that revenue. It was really more that it was pushing into 2026. Some of that was Q1 2026, but some of that's going to be in the first half of 2026. Slightly higher costs of revenue, and that's really driven by a little bit by tariffs, a little bit by inflation. So we saw a little bit of slightly higher costs on that, but then lower G&A expenses.

因此，我們預測的淨收入約為1250萬美元，土地開發業務的收入略有下降，但這並非意味著我們損失了這部分收入，而是這部分收入被推遲到了2026年。其中一部分收入將在2026年第一季到賬，另一部分則會在2026年上半年到賬。收入成本略有上升，主要是由於關稅和通貨膨脹的影響。因此，我們看到這部分成本略有上升，但一般及行政費用有所下降。

So those things that we can control, particularly when we have a headwind type environment, we pay a lot of attention to SG&A. And then we're given a little bit of tailwind from royalties on the oil and gas to allow us to bring that net income -- even not only above -- slightly above that forecast but continuing to drive earnings to the company. I want to move into kind of taking the view up a few feet and really highlight each of the business segments so that you get a flavor for not only where our investments are going, but how each of these segments are performing. So in our Water Utility segment, really the main drivers there are where we get our revenue from. And so the recurring revenue side of it, we have a little over 1,600 commercial connection points on there out of a total of 60,000 potential given our water portfolio.

因此，對於那些我們可以控制的因素，尤其是在面對逆風環境時，我們會格外關注銷售、管理及行政費用（SG&A）。此外，石油和天然氣特許權使用費也為我們帶來了一定的順風，使我們能夠實現淨收入——不僅略高於預期，而且持續推動公司盈利增長。接下來，我想從更高的層次來審視各個業務板塊，讓大家不僅了解我們的投資方向，還能了解每個板塊的表現。就我們的水務業務部門而言，其主要驅動因素在於我們的收入來源。就經常性收入而言，我們目前擁有超過1600個商業連接點，而我們的水務資產組合總共擁有6萬個潛在連接點。

So we're just getting started on that. Industrial water sales, water sales to oil and gas customers and then connections, and that's largely driven by our land development business, and we get tap fee revenue that's attributable to that and delivering high margins there as we continue to invest year-over-year into our water system and really deploy that capital that we're receiving from maybe some of the one-time sales to oil and gas to make sure that we get high margins and continued profitability into our tap fee connections. If you look at kind of how that portfolio -- our water portfolio performs. We've talked about this a number of times. We believe we can serve 60,000 connections, probably can be a little bit stronger than that given the trending in the amount in water consumption per single-family equivalent, but we continue to really pace our guidance on this at 60,000 connections.

所以，我們才剛起步。我們的業務包括工業用水銷售、石油天然氣客戶的用水銷售以及接入服務，這主要得益於我們的土地開發業務。我們從中獲得接取費收入，並持續為供水系統提供高利潤。我們持續增加對供水系統的投入，並將部分來自石油天然氣一次性銷售的資金用於確保接入費業務的持續獲利。如果您看一下我們的供水業務組合的表現，您會發現我們能夠滿足6萬個接入需求。我們已經多次討論過這個問題。考慮到單戶家庭用水量的趨勢，我們或許能夠滿足更多需求，但我們仍然將6萬個接入的預期控制在一定範圍內。

And as most of you know who are familiar with the company, we get two fee incomes from that. We get a large [whomp] upfront capital fee component and our tap fees now, our combined water and wastewater tap fees are right around that $40,000 mark. So those continue to grow and appreciate based on the scarcity value of water and the cost of incrementally delivering those supplies, which are farther and farther out and harder and harder to bring on board. And then annual revenues. And our annual revenues are pretty consistent.

正如大多數熟悉我們公司的人所知，我們從中獲得兩筆費用收入。一筆是金額龐大的前期資本金，另一筆是接取費，目前我們的水和污水接入費總計約 4 萬美元。由於水資源的稀缺性以及輸送水源的成本不斷增加（輸送距離越來越遠，難度也越來越大），這筆費用會持續成長。此外，我們還有年度收入。我們的年度收入相當穩定。

We're probably growing that a bit. That's about $1,600 per connection per year. And so when you take a look at that, the connection of 60,000, that's about $2.5 billion worth of top line revenue, cost us about $1 billion to build that full system over time and then our connections year-over-year revenue. So overall, we're still a very small fraction of our total capacity, close -- a little over 2.5% of what we're really deploying depending -- compared to our capital and our capacity. And then the production year-over-year.

我們可能略微提高了這個數字。這大約是每個連接每年1600美元。所以，當你看一下這個數字時，6萬個連接帶來的總收入約為25億美元，而我們隨著時間的推移建造整個系統花費了大約10億美元，再加上我們每年的連接收入。因此，總的來說，我們目前的規模仍然只佔總產能的一小部分，大約只占我們實際部署規模的2.5%多一點，這取決於我們的資本和產能。然後是每年的產量。

We continue to invest in that system. We had a pretty light year, which we knew that was a forecastable gap in oil and gas deliveries. So we still have plenty of pedal on what we've developed in our production capacity to deliver that water as that water increases. And we look to see a bit of increase in that in 2026. As that applies to kind of fiscal year-end year-over-year, really, the interesting thing about the water side is some of the diversity in the mix of customers.

我們持續投資於該系統。今年油氣供應較為清淡，我們也預料到這是石油和天然氣供應的一個可預見的缺口。因此，我們仍有足夠的產能來滿足不斷增長的用水需求。我們預計2026年用水量將略有成長。就財政年度結束時的同比數據而言，水務方面真正有趣的地方在於客戶群的多樣性。

When you take a look at that, we're sort of looking at the domestic customers, which is that dark blue, and that will be what we're delivering to that 1,600 connections year-over-year, some of the oil and gas deliveries and then the tap fee deliveries, which are attributable to our land development segment. And so while our overall revenues stay in line, the mix of that, as you can see, between year-over-year is variable. And so you're going to see a diversity there that allows us to kind of continue to grow that asset base, not only from the recurring standpoint, but also in capitalizing on other business segments and being able to put some of that idle capacity to use either through oil and gas or in the development side. And then good customer growth. Again, we've got about a 22% CAGR on our customer growth.

從圖中可以看出，我們主要關注的是國內客戶（圖中深藍色部分），這部分是我們每年向1600個連接點提供的服務，包括部分油氣輸送和接入費，後者主要來自我們的土地開發業務。因此，雖然我們的整體收入保持穩定，但正如您所看到的，各收入來源的組成逐年變化。這種多元化使我們能夠繼續擴大資產規模，不僅從經常性收入的角度，還能利用其他業務領域，並將一些閒置產能用於油氣或開發方面。此外，客戶成長良好。我們的客戶成長率約為22%。

So we continue to really leverage out building that recurring and perpetual customer growth in the recurring revenue side. Just a small snapshot of the oil and gas side. We did have a forecastable decline for oil and gas deliveries in 2025, and that was largely due to a strong push of permitting oil and gas wells on the Lowry Ranch in our service area. And oil and gas operators have close to 200 permits now that they're actually drilling.

因此，我們持續大力拓展經常性收入的客戶群，實現持續穩定的客戶成長。這裡簡單介紹一下油氣業務。我們預測2025年油氣交付量將出現下滑，這主要是由於我們服務區域內的洛瑞牧場（Lowry Ranch）大力推進油氣井的審批工作。目前，油氣業者已獲得近200份許可證，並開始實際鑽探作業。

So we have a drill rig that is, for the time being, committed to drilling nothing but pad sites on the Lowry Ranch. And so we do see for 2026, a significant increase in oil and gas deliveries for that segment. So you'll look forward to seeing some of that action in 2026.

所以，我們目前有一台鑽孔機專門用來在洛瑞牧場鑽探井場。因此，我們預計到2026年，該區域的油氣交付量將顯著成長。敬請期待2026年的相關進展。

Let me move over to the Land Development segment. Taking a look at each of the phases of that, one of the carryovers on Phase 2C. So we did deliver the 228 lots of Phase 2C that we had forecasted for 2025. And we had a small about $800,000 of deferred revenues that spilled over into Q1, and that was a function of sort of the regulatory climate in permitting and getting some lot templates on some of the lots that we had for one of our builders, but that did come in, in Q1.

接下來我談談土地開發部分。讓我們來看看各階段的情況，其中一項是2C期的結轉項目。我們確實交付了2C期預計在2025年交付的228個地塊。此外，我們還有大約80萬美元的遞延收入結轉到了第一季度，這主要是由於審批方面的監管環境以及我們為一家建築商準備的一些地塊的地塊模板等原因造成的，但這筆收入最終還是在第一季度到賬了。

Overall, sales in Land Development were off then from our expectations, and that was largely attributable to some of the headwinds that we're seeing in housing and really trying to provide that customer service to our homebuilders and making sure that we're pairing inventories at appropriate levels where we're not overinvesting in roads, curbs and gutters, and they're not inventorying finished lots beyond sort of those annual increments that we like to deliver them to and they like to receive in.

總體而言，土地開發銷售額低於我們的預期，這主要是由於我們在住房方面看到的一些不利因素，以及我們努力為房屋建築商提供客戶服務，並確保庫存水平適當，既不會過度投資於道路、路緣和排水溝，也不會讓已完工地塊的庫存超出我們希望交付和他們希望接收的年度增量。

Taking a look at 2026, we're working on completing Phase 2D. And so we'll see -- we're about 43% on that. So that was some of the rev rec in 2025, but you'll see the completion of that rolling into 2026 and then visibility from there, taking a look at not only 2D, but 2E, which is going to be the next phase.

展望2026年，我們正努力完成2D階段。目前我們已完成約43%。這部分收入預計在2025年到賬，但您將會在2026年看到該專案的完成，之後不僅2D階段，而且下一階段2E階段的進展也將更加明朗。

On the land development side, this is kind of a breakout of which phase is contributing to the revenue streams. As we had this Phase 2, we subphased that out. We initially had that sub phased into four sub phases, but we were able to add a fifth one with that with this 2E. But it really does show you that bulk of '25 deliveries was from Phase 2C and some of those forecastable revenues that we had that we were able to dial down just a bit because of the housing headwinds will push into the first half of Phase 2D on that.

在土地開發方面，這可以看作是哪個階段對收入流的貢獻。由於我們有了第二階段，我們將其細分為多個子階段。最初，我們將其細分為四個子階段，但透過 2E 階段，我們又增加了一個子階段。這確實表明，2025 年的大部分交付量來自 2C 階段，而我們由於住房市場逆風而略微下調的部分預期收入將轉移到 2D 階段的前半部分。

And so it gives you kind of the total land development revenues and how those occurring for the trailing three fiscal years. So it kind of gives you a profile of some of the developments and really how that's maturing, and you're seeing this slide where we're carrying it forward on not only the land development side, but then kind of how that vertically integrates ourselves into the water side from the tap fees.

因此，它大致展示了過去三個財政年度的土地開發總收入及其變化。它大致上描繪了一些開發項目的概況，以及這些項目是如何逐步成熟的。您可以看到，這張幻燈片不僅展示了我們在土地開發方面的進展，還展示了我們如何透過自來水費將業務垂直整合到供水方面。

We haven't fully received all the tap fees from Phase 2B. So we still have some contribution from those deliveries, which were in 2024, that will come in, in '26 and then taking a look at 2C and 2D on the tap fees for that and then also single-family rentals. And last year was a bit of a struggle for us on single-family rentals. Again, another regulatory issue for us as the county, which is our jurisdiction, updated their building codes and really had difficult time processing homebuilder permits on that.

我們尚未收到二期B階段的全部接取費。因此，我們仍有部分款項來自原定於2024年交付的供水，這些款項將在2026年到帳。此外，我們也要關註二期C和二期D階段的接取費，以及獨棟住宅租賃的接取費。去年，我們在獨棟住宅租賃方面遇到了一些困難。這又為我們帶來了另一個監管問題：我們管轄的縣政府更新了建築規範，導致我們在審批房屋建造商許可證時遇到了很大的困難。

And so we're through that phase. Most of our homebuilders have got what we call Masters approved. So each housing plan will be approved and then they can build that same house, different elevations so that they change the look of that, but the building department's approval of that Master allows them to build that on any number of different lots. And so each of our builders have got their Masters approved, which still accelerate into our single-family rentals. So you'll see a substantial increase in the number of single-family rentals in 2026 and into 2027.

所以我們已經度過了那個階段。我們的大多數房屋建築商都獲得了我們稱之為“主設計圖”的批准。也就是說，每個住宅方案都會獲得批准，然後他們就可以建造同樣的房屋，只是立面不同，外觀有所變化。建築部門對主設計圖的批准允許他們在任意數量的地塊上建造房屋。因此，我們所有的建築商都已獲得了主設計圖的批准，這將繼續推動我們的獨棟出租房業務發展。所以，您將會看到2026年和2027年獨棟出租房的數量大幅增加。

I'll highlight a little bit more of that later. What I wanted to do is this will help illustrate kind of how our percent completion works. And most of our builder contracts are structured in a [Flow] Funding Agreement where we get paid in three installments. We get paid once we do the Plat, which is a recordable property interest to an individual lot. It's a paper lot, but it is that they own that address lot.

我稍後會更詳細地解釋一下。我想透過這個例子來說明我們的完工百分比是如何計算的。我們的建築商合約大多採用分期付款協議，分三期支付款項。第一期是在完成地籍圖之後，地籍圖是針對單一地塊的可登記產權。雖然只是紙面上的地塊，但實際上他們擁有該地址地塊的所有權。

And then we use those funds to be able to really do the land development side. So we're really working in a partnership with our homebuilder partners to be able to deliver these on a real-time basis. As we complete the wet utilities, which includes the overlot grading and the overexavation for the soils, then we make that second payment. And then as we deliver the roads, curbs and gutters, we get that finished lot payment. And so this kind of shows you some of the timing of how those payments go and really that work product over the POC.

然後，我們利用這些資金真正進行土地開發工作。因此，我們與房屋建築商合作夥伴緊密合作，以即時交付這些項目。當我們完成水力發電設施建設（包括地塊平整和土壤勘探）後，我們會支付第二筆款項。之後，當我們完成道路、路緣和排水溝的建設後，我們會收到最終地塊的款項。這大致上顯示了這些款項的支付時間以及專案完成情況。

And sometimes those will span quarters, sometimes those spans year-end. And when you take a look at delivering each of these individual increments of lots, it's not always clean enough to deliver in one fiscal year, but it does deliver in a year, and that year may be 12-month period as opposed to matching with our fiscal year. But that kind of gives you an illustration of how some of that -- how we can dial up and dial down to the market depending on how the strength of that market goes. This is kind of the location of where our next phase is going to be. So it's going to be directly across that Phase 2E, and that's about another 150 lots that will be directly across from the high school.

有時這些項目會跨越幾個季度，有時則會跨越到年底。當你仔細查看每個地塊的交付進度時，你會發現並非總能在一個財政年度內完成，但確實可以在一年內交付完畢。而這一年可能是12個月，而不是與我們的財政年度完全一致。但這可以讓你了解我們如何根據市場行情靈活調整開發規模。這裡是我們下一階段的大致位置。下一階段將直接位於二期E區對面，大約還有150個地塊，就在高中對面。

The important component of this is we're really almost complete with most of the major infrastructure on that. The roadways were complete pursuant to some of the other phases. So this should be a high-margin area because most of the off-sites and arterials are all completed and the roadways are completed, the water, sewer, all that system expansions are already to this property. So that will be a nice phase for us. One of the key milestones for 2025 was really groundbreaking for high school.

其中最重要的一點是，我們基本上已經完成了大部分主要基礎設施的建造。道路建設已按其他階段的要求完成。因此，這應該是一個利潤空間很大的區域，因為大部分的配套設施和主幹道都已完工，道路也已建成，供水、污水處理等所有系統擴建工程也已連接該地塊。所以，這將會是一個對我們來說非常有利的階段。 2025年的一個重要里程碑是高中的破土動工。

And as you can see from that aerial drone shot, it's right adjacent to our primary school. So it's a full campus. It's a full K-12 campus and really excited to continue to work with National Heritage Academy. There, our charter partner and really -- that's one of the high-value commodities for our development here is that we've got a full walkable K-12 campus right on site for the development and outstanding delivery of education here at Sky Ranch. So we're very grateful for that.

正如您從無人機空拍照片中看到的，它緊鄰我們的小學。這是一個完整的校園，涵蓋幼兒園到高中（K-12）的完整教育體系。我們非常高興能繼續與我們的特許合作夥伴—國家傳統學院（National Heritage Academy）合作。事實上，對於我們這裡的開發項目而言，一個極具價值的優勢在於，我們擁有一個完整的、步行即可到達的幼兒園到高中（K-12）校園，它就位於天空牧場（Sky Ranch）的開發和卓越教育的提供地塊內。對此，我們深表感激。

We're very grateful for our charter, which is the Bennett School District and our partnership with Bennet School District on bringing this education system to Sky Ranch. I continue to want to kind of illustrate our service area and kind of where Sky Ranch is in the metropolitan area. And so the map on the right here, the black line at the top of that really is the I-70 corridor. And Sky Ranch is the development in the blue there, and that kind of illustrates really where we are. We talked often about the fact that Denver really situates itself on kind of an ocean-like framework because we can't grow West.

我們非常感謝貝內特學區（Bennett School District）的授權，以及我們與貝內特學區合作，將這套教育體系引入天空牧場（Sky Ranch）。我想繼續向大家展示我們的服務區域，以及天空牧場在都會區的位置。右側的地圖上，頂部的黑線代表的是70號州際公路走廊。天空牧場則用藍色標出，這大致說明了我們所處的位置。我們經常談到，丹佛的發展實際上是建立在類似海洋的框架上的，因為我們無法向西擴張。

And so all the growth is concentrated to the Eastern Plains area. And really, our assets, whether it's our land development assets or our service area are located in the most ideal section of the Denver metropolitan area. And the aerial to the right really kind of shows the encroachment of development on our service area. This is owned by the State of Colorado and its development and its revenue opportunities really benefit the education system here in Colorado, the K through 12 education system, but you can continue to see all of the development that surrounds the surface area for that. So our assets are ideally positioned in the right location, and we continue to really look forward to how these will grow and monetize over time, both for the State Land Board as well as to expand our systems.

因此，所有成長都集中在東部平原地區。事實上，無論是土地開發資產或服務區域，我們的資產都位於丹佛都會區最理想的地段。右側的空拍圖清楚地顯示了開發案對我們服務區域的侵蝕。這片土地歸科羅拉多州所有，其開發和收益機會確實惠及科羅拉多州的教育系統，包括K-12教育系統。但您可以看到，這片區域周圍到處都是開發案。因此，我們的資產位置優越，我們非常期待這些資產未來如何發展並實現盈利，這不僅有利於州土地委員會，也有利於我們系統的擴展。

As I mentioned, we want to talk a little bit about single-family rentals. And so this kind of illustrates where that portfolio of single-family rentals are. A, that Phase 2A really was where we had the 14 units. We have about four units in filing one. But then, 10 units in A and really the acceleration of how B, C, D and E are going to add to the portfolio. And so with that bit of a delay because of the building code upgrade, we have about 40 homes under contract now that are delivering from several of our homebuilders.

正如我剛才提到的，我們想簡單談談獨棟住宅租賃業務。這可以大致說明我們獨棟住宅租賃業務的現況。 A，二期A階段我們確實有14間單元房。目前第一期工程中約有4套單元房。 A階段有10套單元房，而B、C、D和E階段的建造速度將顯著加快，進一步豐富我們的投資組合。由於建築規範升級導致工期有所延遲，目前我們已與多家建築商簽訂了約40套房屋的合同，這些房屋正在交付中。

And what we've tried to do is pace that out so that they can deliver those on five units a month. We had five units delivered in Q1 of 2026. And of the deliveries, those delivered in late October, I think we've got three of those leased. Two of them are on the market, but we're continuing to show strength in the rental market on single-family rentals. And then those will pace out and deliver those units through fiscal 2026.

我們努力控制交貨速度，爭取每月交付五套單元房。 2026年第一季我們交付了五套單元房。在十月下旬交付的單元房中，我認為已有三套出租，兩套正在出售，但我們在單戶住宅租賃市場持續保持強勁勢頭。這些單元房將按計畫在2026財年內陸續交付。

Steady rental income stream from that. We really like that asset-light appreciation model where we can lever up the vertical cost of that and continue to keep our balance sheet clean and strong. So this is what you're going to see in 2026 and the real story for performance on 2026 is continued pacing with our land -- our homebuilder partners and our land segment and then acceleration of growth in the single-family rental segment. It's a bit of the fiscal year performance year-over-year. So we're seeing a slight increase in growth on the rents.

穩定的租金收入來源。我們非常喜歡這種輕資產增值模式，它使我們能夠利用槓桿作用來提高垂直成本，並繼續保持我們資產負債表的穩健和良好。這就是您將在2026年看到的情況，而2026年業績的關鍵在於我們土地業務（包括與住宅建築商合作夥伴的土地業務）的持續增長，以及單戶住宅租賃業務的加速增長。這在一定程度上反映了本財年的年比業績。因此，我們看到租金成長略有上升。

But for the most part, our occupancy is very, very low. I think we've got a 97% occupancy for the portfolio to-date and then continued asset appreciation. The nice thing about this segment is -- we carry forward the equity of the lots as well as the water utility side and then are leveraging up the vertical cost of that and really have a nice relationship on that because we have a high loan-to-value ratio there and then that asset continues to appreciate together with the market. We're seeing continued growth in that, not only just because of housing growth, but also because of the continued investment that we have in the community. This will kind of show you the growth of each of the phases and how we do that.

但總的來說，我們的入住率非常非常低。我認為到目前為止，我們整個投資組合的入住率達到了97%，而且資產還在持續增值。這個板塊的優勢在於——我們不僅保留了地塊的權益，還保留了供水設施的權益，並透過槓桿作用提升了垂直成本，從而實現了良好的收益，因為我們擁有較高的貸款價值比，並且該資產會隨著市場一起持續增值。我們看到該板塊持續成長，這不僅是因為房屋市場的成長，也得益於我們對社區的持續投資。接下來，我們將向您展示每個階段的成長以及我們是如何實現的。

And so that Phase 2B, where we were looking for a stronger growth in 2025, really pushed over into 2026. So we'll have a bit more than the 31 homes. We'll probably have 40 homes accelerate in that area. And then how it continues to grow from Phase 2B and C. So those are where we're looking for, for '26.

因此，我們原計劃在2025年實現更強勁成長的2B期項目，實際上延後到了2026年。所以，屆時我們將擁有比31套更多的住宅，可能會增加到40套。接下來，我們將關注2B期和2C期計畫的持續成長。這就是我們對2026年的展望。

And then continuing on through the second phase. And if you take a look at this whole portfolio as it relates to the overall development, we're looking at being in that 8% to 10% of the total homes. And so if we have about 3,000 single-family equivalent units out there, somewhere in that 250 to 300 homes would be our target for this portfolio. Talk a little bit about stewardship of shareholder capital and our balance sheet. We continue to invest into these assets.

接下來進入第二階段。如果從整體開發的角度來看這個投資組合，我們預期會占到總住宅數量的8%到10%。也就是說，如果我們有大約3000套單戶住宅單元，那麼我們這個投資組合的目標就是建造250到300套住宅。請談談股東資本的管理和我們的資產負債表。我們將繼續投資這些資產。

So you'll see continued asset growth and strength to the company. Water segment is around $68 million, land development segment. That continues to mature. So as we're bringing assets into the portfolio, we're also taking them off our balance sheet because we're selling them. But we continue to make sure that we maintain liquidity.

因此，您將看到公司資產持續成長，實力不斷增強。水務業務板塊規模約6,800萬美元，土地開發業務板塊也不斷成熟。我們在將資產納入投資組合的同時，也會出售部分資產，從而將其從資產負債表中移除。但我們會持續確保公司保持流動性。

And as our capital stack goes, we want to make sure that we're investing into monetizing these legacy assets that we acquired over the years and really generate the high-margin incomes from each of the segments and then continuing to build into our single-family rental and continuing to maintain a strong liquidity portfolio, really balanced out between our cash, which is inclusive of restricted and unrestricted. And the restricted cash is really just letters of credit that we have for performance to the local municipality on the roads, curbs and gutters. It's how we warranty out those during our one-year warranty period.

就我們的資本結構而言，我們希望確保投資於多年來收購的這些傳統資產的變現，真正從各個業務板塊獲得高利潤收入，然後繼續發展我們的獨棟住宅租賃業務，並繼續保持強勁的流動性組合，真正實現現金（包括受限現金和非受限現金）之間的平衡。受限現金其實是指我們為履行與當地市政當局就道路、路緣和排水溝工程相關的履約而開立的信用證。這是我們在一年保固期內為這些工程提供擔保的方式。

And then the note receivable that we get as that comes in periodically in sort of increments as we build assessed value within the community, more homes, more assessed value, more tax revenue that's available for us to issue bonds through the local municipality and reimburse us for all of those receivables. And then a small amount of debt, our debt is really attributable to most of the single-family home rental side of the business.

然後，隨著社區內房屋數量的增加，評估價值不斷提升，稅收收入也隨之增加，我們定期收到應收票據，這些應收票據可以透過當地市政當局發行債券來償還所有應收帳款。此外，我們還有少量債務，這些債務主要來自單戶住宅租賃業務。

So continued strong balance sheet. Capital allocation, if you take a look at how that composite makes itself up, cash and investments and the note receivable and then just growth in the infrastructure, making sure that our water systems continue to grow so that we can continue to add those recurring customers. And then we continue to reinvest in ourselves, probably a little more conservative in 2025, mostly because of the housing headwinds and wanting to make sure that we're pacing.

因此，資產負債表依然強勁。資本配置方面，從其組成來看，包括現金、投資、應收票據以及基礎設施的成長，確保我們的供水系統持續發展，從而不斷增加回頭客。此外，我們將繼續進行再投資，2025 年的投資策略可能會更加保守，主要是因為房地產市場面臨不利因素，我們希望確保發展步伐穩健。

We had a lot of chips on the table last summer, really dialing up the absorption of our lots. And we wanted to make sure that we weren't pushing our homebuilder customers into a risk profile that really shifted most of that from our risk to their risk. So we wanted to balance that out. So we were a little bit more conservative than I think we would have otherwise been, but we continue to reinvest in the share repurchase program. Give you kind of a profile of how we were performing quarter-over-quarter in that.

去年夏天我們投入了大量資源，大力推動地塊銷售。我們希望確保不會讓我們的房屋建築商客戶承擔過高的風險，導致大部分風險從我們轉移到他們身上。所以我們希望保持平衡。因此，我們採取了比以往更保守的策略，但我們仍然持續投資於股票回購計畫。接下來，我將簡要介紹我們在這方面的季度業績。

And then the diversity, I think one of the things that we want to continue to emphasize is the number of ways that we generate revenue from these assets, whether that's on the Utility segment, where we have a number of segments, subsegments in there, whether that's the domestic side of the business or the industrial side of the business, rental income revenue from our single-family homes, and you're going to see a strong acceleration of that, land development and the synergies that we get on doing just a fantastic job of the Master Planned Community and adding value to the community and really partnering with our homebuilder customers and then making sure that we are good stewards of your capital.

然後是多元化，我認為我們想要繼續強調的一點是，我們從這些資產中創造收入的方式多種多樣，無論是公用事業部門（我們有很多部門和子部門），還是家庭業務或工業業務，以及我們獨棟住宅的租金收入（你會看到這部分收入大幅增長），還有土地開發，以及我們在總體規劃社區建設和客戶建立的協同效應，我們為社區建設商的客戶關係

Taking a look at kind of how we see things rolling out not only this year, but then how it's going to roll out through a midyear forecast as well as a builder forecast. I think we tried to foreshadow some of this last year, but 2026, if you take a look at the recurring, we do have an expectation of continued recurring revenue growth, not only from our water customers, but also some of our single-family rental. And that's going to become a bigger component of our recurring revenue.

讓我們來看看今年各項工作的進展情況，以及年中預測和建築商預測的後續發展趨勢。我認為我們去年已經嘗試預告過一些情況，但就2026年而言，如果我們看一下經常性收入，我們預計經常性收入將持續增長，這不僅來自我們的用水客戶，也來自部分單戶住宅租賃業務。這部分收入將成為我們經常性收入中越來越重要的一部分。

You're going to see that continue to accelerate where we're going up to 100 units in Phase 2 and then maybe up as many as 250 to 300 units through build-out. And so that will continue to add to the asset growth. So when you take a look at how that translates, that asset growth is a tremendous opportunity for the company and particularly compared to the percent of each of these assets that we're currently developing.

你會看到這成長動能持續加快，二期工程將達到100套單元，之後隨著工程的逐步完善，單元數可能達到250至300套。這將持續推動資產成長。因此，從實際角度來看，這種資產成長對公司而言是一個巨大的機遇，尤其考慮到我們目前正在開發的每項資產所佔的比例。

And so as we can accelerate that development, we do that, and we try and pace that with making sure that our inventories are appropriate. This is a little bit more highlight on kind of how the profitability trends from each of our business segments, the Water, the Land Development and then also kind of continued emphasis on recurring revenues. So you'll see that continued growth. We're looking at 2026, depending on sort of these housing headwinds, that might be slightly down from 2025. We do believe we have some pedal in the oil and gas deliveries this year.

因此，隨著我們能夠加快發展步伐，我們會這樣做，並努力確保庫存充足。這主要體現在我們各個業務部門（水務、土地開發）的獲利趨勢，以及我們對經常性收入的持續重視。因此，您將會看到持續成長。我們預期2026年的業績將取決於房屋市場面臨的不利因素，可能會略低於2025年。我們相信今年石油和天然氣的交付量將會增加。

So we'll see how that goes. We didn't want to be overly optimistic just because of the visibility of the price of oil, but we're really optimistic about continued monetization and continued growth in this segment. And really, the transition going up to this -- what would be a tantamount change to the monetization of these assets are we continue to pace our growth on the residential side.

所以，我們拭目以待。我們不想因為油價走勢明朗就過於樂觀，但我們對這領域的持續獲利和成長確實充滿信心。實際上，在此之前，對這些資產獲利而言至關重要的轉變在於，我們將繼續保持住宅業務的成長步伐。

But moving into 2028 with the delivery of our interchange, which we're working through in the permit process, but we're fairly close to getting that finalized. And we'll work through the financing of that through the Metro District. So we reserved some bonding capacity in that to make sure that we have the funds that are available to bond that out in 2026, start construction of that in 2027 and then really layer in and almost double the deliveries of our Land Development revenues maintaining the same pace with our residential development, but then also delivering a like amount of equivalent lots for our commercial development.

但展望2028年，隨著我們天橋工程的竣工，我們正在推進審批流程，目前已接近完成。我們將透過都會區政府解決該專案的融資問題。為此，我們預留了一定的債券額度，以確保在2026年發行債券時有足夠的資金，並在2027年啟動建設。之後，我們將逐步推進該項目，使土地開發收入幾乎翻一番，同時保持住宅開發的速度，並交付同等數量的商業用地。

And then the valuation on those commercial lots, we're forecasting that to be about 2x the valuation of our residential lots. So that's the real delta in how we look to change the composition of the land development and how we're almost doubling that land development -- a little more than doubling that land development revenue is because of the bringing online that commercial lots. And that's a function of two things. One is going to be rooftops.

然後，我們預測這些商業用地的估值將是住宅用地估值的兩倍左右。這就是我們改變土地開發結構以及土地開發收入幾乎翻倍（甚至略超過一倍）的真正意義所在，這主要歸功於商業用地的投產。而這取決於兩方面因素。一是房屋的建造數量。

Most of the commercial players are going to want a certain number of rooftops to be able to generate revenues from what their investments are going to be, but then also access and making sure that we have a large volume of transportation access and really capitalizing on our location being right on the Interstate with an interchange, an exit ramp right where our project is. So that's kind of how we gain some leverageability and some scalability to the Land Development and the Water Development side of the businesses.

大多數商業參與者都希望擁有一定數量的屋頂，以便從他們的投資中獲得收益。同時，交通便利性也至關重要，我們需要確保擁有充足的交通流量，並充分利用我們計畫位於州際公路旁、設有立體交叉和出口匝道的地理優勢。這正是我們在土地開發和水利開發業務方面獲得槓桿效應和規模化發展的關鍵。

Valuation sensitivity. So 2026, our gross revenue, we're going to show a range there of 26% to 30%, and that's going to be a function of some of that sensitivities on lot deliveries as well as some of the industrial water sales activities. So a range of earnings per share that corresponds to that.

估值敏感度。因此，對於2026年的總收入，我們預計其波動範圍為26%至30%，這將受到部分批次交付以及工業用水銷售活動的影響。由此，每股收益也將呈現相應的波動範圍。

Upside and the timing of the acceleration is really going to be how we look to deliver and maintain those inventories of lots so that we're not investing into the capital cost of delivering those in advance of having those deliveries for our homebuilder customers. And really, we started out with delivering this project with -- started out with three builders, four builders, and now our portfolio is closer to seven builders.

加速發展的關鍵在於如何交付和維持這些地塊庫存，從而避免在向房屋建築商客戶交付之前就投入大量資本成本。實際上，我們最初與三家、四家建築商合作開展這個項目，而現在我們的合作建築商數量已接近七家。

And so each of the builders would like to maintain a year's worth of inventory, which allow us to have a bit more of an acceleration to our Land Development side that serves more diversity of product mix. And so as the community continues to mature, we look forward to continuing to serve the whole portfolio of our builders. Short-term outlook, I won't spend a lot of time.

因此，每家建築商都希望保持一年的庫存量，這使我們能夠加快土地開發步伐，從而提供更多樣化的產品組合。隨著社區的不斷成熟，我們期待繼續服務我們所有建築商的客戶群。短期展望方面，我不會花太多時間。

I think we've covered a lot of what this is. But our Water segment growth, we're going to take a look at the 3- to 5-year period where we're going to get up to about half of our total water recurring customers. Sky Ranch in total will be about 5,000 total connections. So we look to see that come into about that 2,500 units. Land Development side, we should get to -- we're right around that 18% of complete.

我認為我們已經涵蓋了這方面的大部分內容。關於我們的水務業務成長，我們將著眼於未來3到5年，預計屆時我們將有大約一半的用水客戶成為我們的長期用戶。 Sky Ranch的總連接數約為5000戶，預計將轉化為約2500套住宅單元。在土地開發方面，我們目前的完成度約為18%。

So we'll probably get closer to 30%. So we're looking at doubling of that. And then once we've got that commercial in play, you'll see that accelerate through the longer term. So build-out of Sky Ranch is in that 7- to 10-year window. But in the short-term, we look at kind of getting up to about that 30% and then having a faster acceleration once we're layering into the commercial component.

所以我們最終的完成率可能會接近30%。也就是說，我們預期完成率會翻倍。一旦商業營運步入正軌，從長遠來看，你會看到這個數字加速成長。 Sky Ranch的建設週期預計在7到10年之間。但短期內，我們的目標是完成30%左右的完成率，然後在商業營運階段開始推進後，實現更快的成長。

And then single-family rental, we see up to about 100 units in this short-term outlook. Longer term, this kind of gives you a perspective of the total build-out. And then when you take a look at our build-out potential, really monetizing our net revenues from land development get close to $700 million. And the recurring revenue is going to be around that $15 million, $16 million. And that's really a function of kind of the -- you take a look at a $250 million market cap and really what we've got in production of our assets it really is the story for us.

然後是獨棟住宅租賃，我們預計短期內將建成約100套單位。長遠來看，這能讓你對整體建設規模有一個大致的了解。當我們審視我們的建設潛力時，真正實現土地開發淨收入的變現，預計可接近7億美元。而經常性收入將在1500萬至1600萬美元左右。這實際上取決於——你看看我們2.5億美元的市值，以及我們資產的實際生產情況，這才是我們真正的優勢所在。

We've got a tremendous asset here. We're very aggressive about making sure that we're building this thing out and monetizing it and making sure we can do that as quickly and as profitably as we can. So one of the things we're going to do is give you kind of a video tour here. And really, this will kind of give you a view. I'll probably try and stop and kind of highlight a couple of the areas on there.

我們這裡有一項巨大的資產。我們正積極推動這項資產的建設和商業化，力求以最快的速度和最高的獲利能力來實現這一目標。因此，我們將透過視頻帶您參觀。這能讓您對這裡有個大致的了解。我可能會不時停下來，重點介紹一下其中的幾個區域。

So if we want to get that started, this will be an aerial representation. As you can see, this is our first phase. And so this was the more mature side of the community. It really kind of gives you -- stop it right here. It gives you kind of a profile of where we're at relative to the metropolitan area and the growth of the metropolitan area.

所以，如果我們想啟動這個項目，這裡先放一張空拍圖。正如你所看到的，這是我們的第一階段。這裡展示的是社區比較成熟的部分。它能讓你——就此打住——大致了解我們相對於大都會區的位置以及大都會區的發展。

You see the mountains there in the background, and that's what we get to wake up to every day, which is wonderful. But the other key aspect here is if you see kind of at the top of the development there, hard to illustrate, I don't know if you can see the cursor where our wastewater treatment plant is right there. And really, that's a unique asset in and of itself because 100% of the water that comes from our community is treated and reused. And so you don't see any stream that's discharged to that. We bring that back.

您看，遠處就是山，我們每天醒來都能看到這樣的美景，真是太棒了。但另一個關鍵點是，如果您仔細看開發區頂部，可能不太容易看清，我不知道您能不能看到遊標所在的位置，那就是我們的污水處理廠。這本身就是一項獨特的優勢，因為我們社區100%的用水都經過處理後再循環利用。所以您看不到任何污水排放到那裡。我們把污水都回收了。

We reuse 100% of that water supply either through irrigating our open space, which you can see our beautiful open space here for our community or taking that back and selling that to our individual customers. So if you continue on, on that, you'll see panoramic view of kind of the continued growth. We'll stop it right here. And this kind of gives you a perspective of really the deliveries of the phases of the land development segment. Right to the left there, where the cursor is, that was Phase 2A, and that delivered in 2023.

我們100%循環利用這些水源，要么用於灌溉我們的開放空間（您可以看到我們美麗的社區開放空間），要么將其回收出售給我們的個人客戶。如果您繼續往下看，您將看到持續成長的全景圖。我們就先到這裡。這能讓您大致了解土地開發階段的交付。遊標所在的左側是2A期，已於2023年交付。

And then to that, the next slide, that's 2B. And then what we delivered in 2026 was 2C. You can see the roads, finished lots. You can see some vertical homes just starting in that from one of our new builders. I think those are Taylor Morrison lots in there.

接下來是下一張投影片，也就是2B部分。然後是我們2026年交付的2C部分。您可以看到道路和已完工的地塊。您還可以看到我們一家新開發商正在建造的一些高層住宅。我認為那些地塊是泰勒·莫里森（Taylor Morrison）的。

And then you can kind of see 2D under construction where we're really starting -- we're finishing up the wet utilities there, and we'll be moving into roads, curbs and gutters on that. Continuing on, we'll see kind of that -- all the land you can see that's farmed there, that continues to be our portfolio. So that's the continued growth of the project. And so that will be our build-out, plenty of inventory of land that we have on the residential side. So that will continue to grow on the residential side.

然後您可以看到我們正在建設中的2D區域，那裡是我們真正的起點——我們正在完成那裡的供水設施，接下來將進行道路、路緣和排水溝的建設。繼續往下看，您會看到所有您看到的耕地，它們仍然是我們的投資組合。這就是專案的持續發展。我們將在此進行擴建，我們在住宅方面擁有大量的土地儲備。因此，住宅方面的業務也將持續成長。

And then you can kind of get a perspective of how our infrastructure is there. We've got most of the main roadways developed. That's the Boulevard area. Stop where the cursor is, that's kind of the oil and gas and that we bring all our water, our treated water back to that reservoir there at the top, and that maintains the flow for our irrigation system. And those are kind of some of our oil and gas wells that we have in the site.

這樣你就能大致了解我們的基礎建設狀況了。大部分主要道路都已建成。這是林蔭大道區域。遊標停在那兒，那裡是油氣田，我們把所有處理過的水都引回上面的水庫，以維持灌溉系統的水流。這些是我們場地內的一些油氣井。

So Colorado has a rich history of coexisting with oil and gas and residential and commercial development. We can see kind of rolling into Phase 2E there right next to 2E rolling right there, roll right into there. That's our water tank, but that Phase 2E will be between our water tank and the school. That gives you kind of a sense of -- there's our primary school and then the construction of the high school. And it kind of shows you we've got most of the road network developed for that.

科羅拉多州在石油天然氣、住宅和商業開發共存方面有著悠久的歷史。我們可以看到，2E期工程就在旁邊，緊鄰那裡。那是我們的水箱，2E期工程將位於水箱和學校之間。這讓你大致了解——那裡有我們的小學，然後是正在建設中的高中。這也表明，我們已經為該專案開發了大部分道路網絡。

We'll have a little bit of extension on the road up through the high school and continuation of one of the Boulevards. And so this kind of gives you a good feel for that campus is right in the middle of where we're looking to go, right in the middle of all of Sky Ranch. There you go. So really accessible for all the students to be able to walk there. This is kind of a view of the commercial area, right?

我們將稍微延長通往高中的道路，並繼續延伸其中一條大道。這樣一來，您就能清楚地感受到，校園位於我們規劃的中心地帶，就在天空牧場 (Sky Ranch) 的中心位置。就是這樣。所以所有學生步行前往都很方便。這裡可以看到商業區，對吧？

So we're really flying into that 150 acres, which is adjacent to the Interstate. It gives you a strong profile of what the transportation access is and the value of that transportation access. Up in the top of that is the airport. So it kind of gives you a feel for how close we are to the airport. We're 4 miles directly south of the airport.

所以我們實際上是飛入這150英畝的土地，它毗鄰州際公路。這能讓你清楚了解這裡的交通便利程度及其重要性。機場就在這區域的上方。所以，這也能讓你感受到我們離機場有多近。我們位於機場正南4英里處。

And then kind of where that Interchange is going to go, it's going to go straight along the alignment of the Boulevard there, where the -- yeah, so where the existing Interchange is, we'll keep that up and operating. We'll build the other Interchange and then we'll ultimately remove the existing Interchange, but it gives you kind of a flavor for really all of the physical features of the Sky Ranch development.

至於立交橋的選址，它將沿著大道筆直延伸，也就是——是的，在現有立交橋的位置，我們會保留並繼續使用它。我們會建造另一個立體交叉，最終我們會拆除現有的立體交叉。這大概能讓你對天空牧場開發案的全部實體特徵有個大致了解。

So with that, what I'm going to do is kind of turn it over and see if there's any questions.

所以接下來，我要把它翻過來，看看有沒有問題。

We'll open up everybody's mic. And I guess if you have a question, just shout it out. We can't mute them. Yeah, you have to unmute. So the technology here is just unmute your mic and then shout it out and we'll drill down on some of the details or raise a hand and you can type it in the comment section.

我們會打開所有人的麥克風。如果你有任何問題，直接喊出來就行了。我們沒辦法把他們靜音。是的，你需要自己取消靜音。所以，這裡的技術是這樣的：你只需取消麥克風靜音，然後大聲喊出來，我們會詳細解釋一些細節；或者你可以舉手，然後在評論區留言。

(Event Instructions) But yeah, this concludes obviously, our slides. So we'd like to provide this opportunity to anybody who has questions. (Event Instructions) I see that you're on mute. Are you able to talk just so we know everything is working.

（活動說明）好的，我們的投影片簡報到此結束。現在，我們想給所有有疑問的人一個提問的機會。 （活動說明）我看到您處於靜音狀態。您能開口說話嗎？這樣我們就能確認一切正常。

Greg, can you unmute and see if your mic works (inaudible).

格雷格，你能取消靜音看看你的麥克風是否工作嗎（聽不清楚）？

I'm testing this out. Does it work?

我正在測試這個功能。它有效嗎？

There you go. Okay. At least I know we're working.

好了，至少我知道我們正在努力。

Yeah. Anyway, this is [Greg Vennett]. I'm one of your long-time shareholders. I just wanted to test it to see if people are having problems with the technology. I came in late in the call, so I'll have to relisten to the replay in order to call you back and ask questions.

是的。總之，我是格雷格·維內特（Greg Vennett）。我是你們的長期股東之一。我只是想測試一下，看看大家在使用這項技術時是否遇到問題。我加入得有點晚，所以需要重新聽一次錄音才能回電給您提問。

One quick question. Has -- and maybe you said this in the beginning, but with -- has housing sales in your areas slowed down due to affordability or -- I guess my sense is the builders are still building. So if you could answer that, that would be great.

我有個小問題。 ——也許您一開始就提到了——您所在地區的房屋銷售是否因為房價上漲而放緩？或者——我的感覺是，開發商仍在繼續建造？如果您能回答這個問題，那就太好了。

That's a good question because really, you have two variables in the housing industry. And I think Denver is probably on the high side of unaffordability. When you take a look at most housing markets and Denver is in probably the top 10 cities of housing markets, people generally take a look at Denver is pretty high in affordability. And that has been a challenge for us. I would say that's also one of our strengths because we have that entry-level price point and of all of the markets that the builders are looking to serve, when you have an interest rate-sensitive market and when you're looking to buy down interest rates on higher mortgages, the incentive packages that they can offer really have more impact on an entry-level house than they do at kind of a move-up house.

這確實是個好問題，因為住房產業其實有兩個變數。我認為丹佛的房價可能偏高，難以負擔。縱觀大多數住房市場，丹佛大概位列十大住房市場之列，人們普遍認為丹佛的房價相當可負擔。這對我們來說一直是個挑戰。但我認為這也是我們的優勢之一，因為我們提供入門價格的房源。在所有開發商的目標市場中，當市場對利率高度敏感，並且需要降低高額抵押貸款的利率時，他們提供的優惠政策對入門級住宅的影響遠大於對改善型住宅的影響。

And so I would say the resiliency of our builders and our project is strengthened by the fact that we are in that affordable market segment. And that's not saying much when you have to say affordability is anything less than $500,000. That's still a high, high number for an entry-level house, but we are one of -- probably in that 4% of homes that are delivered on an annual basis are in that affordable price segment. So that's why I think we're performing slightly better than maybe some of the other master planned communities and then also our business model being able to time that out. So yes, housing has some headwinds.

所以我認為，我們建築商和專案的韌性得益於我們身處經濟適用房市場。當然，考慮到經濟適用房的定義是低於50萬美元，這個價格對於入門級住宅來說仍然很高，但我們是每年交付的房屋中，大約4%屬於經濟適用房市場的那一類。因此，我認為我們的表現略優於其他一些總體規劃社區，再加上我們的商業模式能夠掌握時機，所以房屋市場確實面臨一些挑戰。

We've probably managed that a little bit better just because of how we can deliver lots on an incremental basis.

我們之所以能做得更好一些，可能是因為我們可以逐步交付大量產品。

I also want to point out sorry, Greg.

我還要說對不起，格雷格。

No, sorry, go ahead and point it out.

不，抱歉，請您指出來。

(Event Instructions)

（活動須知）

On acquisitions and land acquisitions and where you are on those? And any progress throughout the quarter? I know it's hard to time when you're going to have the ability to acquire land and at what price you're willing to pay for it. And then additionally, on the commercial side, I know you have a big hockey stick in '28, but is there anything that's materialized with any commercial players throughout the last couple of quarters?

關於收購和土地收購，你們目前進展如何？本季是否有任何進展？我知道很難預測何時能夠收購土地以及願意支付的價格。此外，在商業方面，我知道你們2028年的業績將大幅成長，但在過去幾季中，與任何商業夥伴的合作方面是否有任何實質進展？

[Craig Weinert, ringing an E]. Good questions. As you take a look at these acquisitions, as we have commented, we really do have our nets out, and we're saving a bit of liquidity just for that. And I'd love to be very detailed about that, but I would say our conversations continue to strengthen with our target areas of acquisitions. It's an interesting profile.

[克雷格·韋納特，發出「E」音] 問得好。正如我們之前所說，在進行這些收購時，我們確實已經做好了充分的準備，並且為此預留了一些流動資金。我很想詳細談談這方面的情況，但我只能說，我們與目標收購領域的洽談仍在不斷深入。這是一個很有趣的領域。

If you had the nation as potential acquisitions, your sandbox is much, much bigger. Our sandbox is very small and very targeted. And that's on purpose because we think that that's where we can provide the best leverage on that. And yes, we would like to be as aggressive. We do have the ability to probably pay more for land than any other developer just because of our ability to bring value to that land from our water portfolio, but we also like to make sure that we're paying for that on land acquisitions that we find to be appropriate for the timing of development.

如果把整個國家都當作潛在收購目標，我們的選擇範圍就大得多。但我們的選擇範圍非常小，目標也很明確。這是我們有意為之，因為我們認為這樣才能最大程度地發揮我們的槓桿作用。沒錯，我們希望採取積極進取的態度。我們有能力為土地支付比其他任何開發商都高的價格，這僅僅是因為我們的水資源組合能夠提升土地的價值。但我們也希望確保我們為土地收購支付的價格與開發時機相符。

And so we're balancing that out to give you that flavor for it. And I'd say I'm more optimistic this year than I was last year, but I say that every year. So we hope that we can see some movement in that area. To your second question in terms of the commercial, we are in the market. We do have listings with the commercial folks that really represent 70%, 80% of the transactions that are in the Denver area.

所以我們正在努力平衡各方因素，以達到您期望的效果。我個人對今年的前景比去年更樂觀，不過我每年都這麼說。因此，我們希望能夠在這個領域看到一些進展。關於您第二個關於商業房地產的問題，我們目前在市場上。我們確實有一些商業房地產掛牌出售，這些掛牌房源佔丹佛地區交易量的70%到80%。

We are seeing interest from a lot of those. Our interest in the commercial is to go directly to the end user. There are a lot of folks that like to get between us and the end user. And really, those aren't as interesting to us as really going strictly to the end user on that just because of value propositions. And our balance sheet is strong, but we want to make sure that we maintain some flexibility to participate in some of that on the commercial side.

我們看到很多這樣的公司對我們感興趣。我們商業上的目標是直接面對終端用戶。很多人喜歡在我們和終端用戶之間做中間人。但說實話，對我們來說，直接面向終端用戶更有吸引力，因為這能帶來更高的價值。我們的資產負債表很穩健，但我們希望保持一定的彈性，以便在商業方面參與一些專案。

So whether we sell the land, whether we partner and participate in some of those horizontal improvements are the types of structures that we're looking at for some of those commercial transactions. Understanding, Craig, that those are going to take some lead times. And so there may be transactions that we're pursuing that would be in 2026, 2027 that would really start to monetize and show that scale of revenue growth in 2028.

所以，無論是出售土地，還是透過合作參與一些橫向改造項目，這些都是我們正在考慮的商業交易模式。克雷格，我們也明白這些都需要一定的準備時間。因此，我們正在推進的一些交易可能會在2026年或2027年完成，但要到2028年才能真正開始獲利並展現出規模化的收入成長。

I would just add to that, though, the growth you're seeing that we're projecting in 2028 is mostly a factor of being able to open up Phase 3 with the interchange and less to do necessarily with some of the timing. So we still have a strong portfolio of commercial lots that aren't really showing up in the projections yet.

不過，我還要補充一點，我們預測2028年的成長主要取決於第三期工程及立體交叉的開通，而與時間安排關係不大。因此，我們仍然擁有大量尚未體現在預測中的商業用地。

It's interesting because the near-term weakness that you're seeing from some of the homebuilders may be a long-term benefit for you guys in that the land may not be as expensive as it was when things were so hot.

有趣的是，你們看到的一些房屋建築商的短期疲軟，從長遠來看可能對你們有利，因為土地價格可能不會像市場火爆時那麼貴了。

I think that's true. And as much as I'd like to say, we're very disciplined in what we pay. And it's also a function of having people -- all of the folks that we talk to usually come back with -- and it's an appropriate retort to a land acquisition is, look, it's going to be worth more tomorrow than it is today. And when you get cycles and a lot of these folks have seen cycles in the past and some of these cycles are short-lived in months. Some of these can be long-lived in terms of several years.

我認為確實如此。雖然我很想強調這一點，但我們在支付方面非常謹慎。這也與人們的回饋有關——我們接觸過的所有人通常都會這樣回應——對於土地收購來說，一個恰當的回應是：它明天的價值肯定會比今天高。而市場週期是存在的，很多人都經歷過週期性波動，有些週期很短，可能只有幾個月；有些週期則會持續好幾年。

And so if they're close to looking at selling and they see a cycle, regardless of price, I think that that's a psychological determination for is to say, listen, it's time, we need to move on. And that's really, I think, what we're seeing more than a function of, oh, we can capitalize on a weak market and benefit there. I want to be disciplined, but I also want to make sure that this is a transaction that works for both them and us. And sometimes that's more timing than it is [amount].

所以，如果他們接近出售目標，並且看到了市場週期，無論價格如何，我認為這是一種心理上的決定，這意味著「是時候了，我們需要繼續前進」。我認為這才是我們真正看到的，而不是只是想著利用疲軟的市場獲利。我希望保持理性，但我也想確保這筆交易對雙方都有好處。有時候，時機比金額更重要。

Mark, let me ask you a question. This is Greg Vennett again. For land acquisitions, you're basically -- it's dirt. And are you looking at acquisitions where they don't have any access to water and you're the value creator or would you guys consider buying dirt that already has access to water?

馬克，我問你個問題。我是格雷格·維內特。土地收購，說穿了就是──就是泥土。你們會考慮收購那些沒有水源、需要你們創造價值的土地，還是會考慮收購那些已經有水源的土地？

I would say we would probably wait those acquisitions where we can bring added value for water. I feel very confident about our land development segment and really building that value in the land development. So if we were, for example, buying a piece of property that we're in an incorporated area where we were getting water service -- water and wastewater service from another provider, we would still do well in that scenario, but it wouldn't give us the vertical integration of leverage on accelerating not only that segment and monetizing investments in land, but also monetizing investments in water. Not to say that we wouldn't consider that, but I think that there's plenty of opportunity for us to be more aggressive on acquisitions where we can bring water to the table.

我認為我們會等待那些能為水務業務帶來附加價值的收購機會。我對我們的土地開發業務以及在土地開發領域創造價值的能力非常有信心。例如，如果我們收購一塊位於已建制區域內的土地，而我們目前的水務服務（包括供水和污水處理）由其他供應商提供，那麼在這種情況下我們仍然會取得不錯的收益，但這無法讓我們實現垂直整合，也無法讓我們利用槓桿效應加速水務業務的發展，實現土地和水務投資的雙重盈利。當然，我們並非完全不考慮這種收購，但我認為我們有很多機會可以更積極地進行收購，從而為水務業務帶來更多價值。

So the person who owns that dirt now, are you the only logical provider of water or can they get water from somebody else? Is there competition? Are you the only provider? Is that your moat?

那麼，現在擁有那塊地的人，你是他唯一的水源供應商嗎？還是他可以從其他地方取得水源？是否存在競爭？你是唯一的供應商嗎？這就是你的護城河嗎？

I would say we're the best provider, but we're not the only, right? I mean they come out -- they can go out and find water themselves and do the heavy lift of building a water utility. That's probably not any of the land interest that we're seeing. It isn't a picnic. And it's -- as you've seen through what we've done over the last 30 years, it's a difficult and expensive proposition to build your own utility.

我認為我們是最好的供應商，但我們並非唯一一家，對吧？我的意思是，他們可以自己去尋找水源，並承擔建造供水設施的艱鉅工作。這可能與我們現在看到的土地需求無關。這絕非易事。而且—正如您從我們過去30年的工作中所看到的，建造自己的供水設施是一項既困難又昂貴的工程。

But there's competition from the neighboring city, City of Aurora. That's probably our only competition. So if they don't look to value our providing water service to them, they would have to consider an annexation. And that carries with it its own risks and its own costs, which then weigh into kind of the cost of land. And so we can deliver lots much cheaper in unincorporated Arapahoe County than any developer could deliver in the City of Aurora just because of our structure.

但鄰近的奧羅拉市也構成了競爭。這可能是我們唯一的競爭對手。如果他們不重視我們為他們提供供水服務，他們就必須考慮合併。而合併會帶來自身的風險和成本，這些都會影響土地價格。因此，由於我們的結構優勢，我們在阿拉帕霍縣非建制地區提供的土地價格遠低於任何開發商在奧羅拉市提供的價格。

And I think that continues to emphasize the price of a home and the affordability of that home. So when other people look at it, they have to look at it through the full development cycle and sort of say, am I competing for developing $800,000 homes or am I competing for developing $400,000 homes, which is what we're looking at. And so we have a competitive advantage to doing that, which then translates into being the best choice.

我認為這進一步凸顯了房價及其可負擔性。因此，當其他人考慮這個問題時，他們必須從整個開發週期來看待，並思考：我是在競爭開發80萬美元的房屋，還是在競爭開發40萬美元的房屋？而這正是我們目前關注的重點。因此，我們在這方面具有競爭優勢，也因為如此，我們成為了最佳選擇。

So a new home in the Aurora area is $300,000 or $200,000 more than Sky Ranch. Is that the way?

所以，奧羅拉地區的新房子比天空牧場貴30萬美元，也就是20萬美元。是這樣嗎？

It will vary. But I would -- some of the newer projects that are getting started in Aurora are getting started at that much, much higher price point. Some of the homes that are directly adjacent to us might only be $60,000 or $70,000 more. So you'll run that -- you'll run a gamut on that. But we certainly have the better location.

價格會因情況而異。不過，奧羅拉一些新開工的項目，起價要高得多。我們隔壁的一些房子可能只貴六、七萬美元。所以價格範圍很廣。但我們的地理位置肯定更好。

We have better cost basis. We have better utility rates. Overall structure is much cheaper and much more efficient in unincorporated than it is in the incorporated area.

我們的成本基礎更合理，公用事業費率也更優惠。整體而言，非建制地區的基礎設施比建制地區更便宜、更有效率。

The future for commercial development, along I-70 where you're going to build the interchange, is there other commercial development that you see in the future that could be competition for you or are you the bull's eye? Do you have the bull's eye -- commercial property?

在您計劃修建立交橋的I-70沿線，未來商業開發方面，您認為未來是否會有其他商業開發項目與您構成競爭關係？或者說，您已經佔據市場主導了？您的商業地產專案是否已經佔據了市場主導地位？

So interchanges benefit all land in the area, and we have kind of a strong footprint in there, but there are other lands that are adjacent to us that we don't own that are looking to develop, and they will have to pay their pro rata share of the cost of that interchange, too. We might be advancing that. But ultimately, as they come online, they'll have to reimburse us for our covering that cost upfront.

所以，立交橋惠及該地區的所有土地，我們在該地區擁有相當強大的影響力，但與我們相鄰的其他土地並非我們所有，他們也正計劃開發，他們也必須按比例承擔立交橋的建設成本。我們可能會提前推進該專案。但最終，當這些立體交叉投入使用時，他們必須償還我們預先支付的費用。

And so that was our structure is that we wanted to make sure our timing was our timing and that we would be advantaged in there and then somebody else coming in there would have that cost component as well. That would -- they would have that off-site investment, which would accelerate some of the reimbursable repayments to us as that competition came online.

因此，我們的策略是確保時機掌握得當，從而佔據優勢，而其他競爭對手一旦進入該領域，就需要承擔相應的成本。這意味著他們需要進行場外投資，這將加速我們收回部分成本，因為競爭對手的產品上線後，我們的部分成本就會被追回。

So we wanted to equalize that to say we weren't carrying them. But at the end of the day, as they come online, I think we have the competitive advantage.

所以我們希望透過聲明我們沒有承擔他們的責任來平衡這一點。但最終，隨著他們的業務上線，我認為我們將擁有競爭優勢。

Mark, can you hear me? It's [Matt Reiner at Aranda]. A question on slide 34, the profitability trend slide. When I look at 2026, I mean, it seems like every category, the revenue is up a little bit, but yet the earnings forecast is down a little bit. And I'm just trying to -- is it the margin differences between the different segments?

馬克，你聽得到我說話嗎？我是[Aranda公司的馬特·雷納]。關於第34張投影片，也就是獲利趨勢圖，我有個問題。我看2026年的預測，感覺每個類別的收入都略有成長，但獲利預測卻略有下降。我想問的是──這是因為不同業務板塊之間的利潤率差異造成的嗎？

Is it -- I mean, it seems like you're buying back some shares. So I don't think it's a share count thing. So just curious as to what I'm kind of missing there.

是嗎？我的意思是，看起來你們好像在回購一些股票。所以我覺得應該不是股票數量的問題。我只是好奇我到底漏掉了什麼。

Yeah. And so the -- you're right. What we're sort of looking at is the 2025 had a high profitability because of kind of the oil and gas, and that's almost 100% margin. And even though we're increasing the revenues in both land development and water, it's not -- we're not likely to see the same earnings per share bump that we saw in 2025 because of that profitability of the oil and gas royalties. That's the real differentiator.

是的。所以——你說得對。我們現在看到的是，2025 年的獲利能力很高，主要是因為石油和天然氣業務，利潤率幾乎達到了 100%。儘管我們在土地開發和水資源方面的收入都在增長，但由於石油和天然氣特許權使用費的高盈利能力，我們不太可能看到像 2025 年那樣的每股收益增長。這才是真正的差別。

I think the comparison -- yeah, the comparison from '24 to '26 will be pretty analogous in it. '25, we were delighted that we exceeded our forecast because you never want to put a forecast out there and not meet it on the earnings per share. And so we were excited to do that. And that really came through the diversity of the revenue streams of the company. (Event Instructions) Okay. Well, if we have no other questions here, I know we'll post the presentation for those of you that are going to hear this on a rebroadcast or listen to it again and inspire a question. Certainly don't hesitate to give me a call and we can drill down on any of the questions. Again, really want to emphasize the value of our leadership team, our management team and really all the employees in the company. We have a great group of professionals that bring their A game each and every day and allow us to really fine-tune the delivery of this. The businesses that we're in, all three of these businesses are about as capital intensive as you can be in a business segment.

我認為，2024 年到 2026 年的對比情況會非常相似。 2025 年，我們很高興超越了預期，因為我們永遠不希望做出每股盈餘的預測卻未能實現。所以我們很高興能夠做到這一點。這主要得益於公司收入來源的多元化。 （活動說明）好的。如果沒有其他問題，我們會發布演示文稿，供那些收聽重播或再次收聽並提出問題的聽眾參考。當然，歡迎隨時致電，我們可以深入探討任何問題。再次強調，我們領導團隊、管理團隊以及公司所有員工的價值至關重要。我們擁有一支優秀的專業團隊，每天都全力以赴，使我們能夠不斷優化業務交付。我們所涉足的這三個業務領域，在各個業務板塊中都屬於資本密集型業務。

And you're investing into hard assets, you're investing into inflation-resistant assets that really continue to monetize. And sometimes you have a little bit of excess capacity in a water or sewer system that then you can help monetize that through delivery to your industrial customers. Some of those investments that we have in big infrastructure, whether that's going to be Boulevards or whether it's going to be land horizontal developments of grading or even an Interchange, those do come back to us.

您投資的是硬資產，是能夠持續產生收益的抗通膨資產。有時，供水或污水處理系統會有一些過剩產能，您可以將其透過向工業客戶供水來實現盈利。我們對大型基礎設施的一些投資，無論是林蔭大道、土地平整開發，或是立體交叉，最終都會為我們帶來回報。

And so we're very cautious about how we make sure that we can finance those and carry those forward so that we can really deliver these lots on an on-demand basis. And while that development cycle can take a year from the time you break ground to the time you get a building permit, that's pretty quick in this world of land development, and we're pleased to be able to kind of match those inventory deliveries with our homebuilder customers.

因此，我們在確保資金到位和專案順利進行方面非常謹慎，以便真正實現按需交付。雖然從破土動工到獲得建築許可的開發週期可能需要一年，但在土地開發領域，這已經算是相當快了。我們很高興能夠將這些庫存交付與我們的房屋建築商客戶的需求相匹配。

So the resiliencies and really the timing have really tested and really shined in kind of what -- when you get these markets that have headwinds, can you not only deliver -- continue to deliver your product, but also match those deliveries to what your customers are looking for. So we see a lot of that performance this year, and we're thrilled to continue to advance on monetizing each of these segments.

因此，韌性和時機把握真正經受住了考驗，並在面對逆境市場時展現出了卓越的能力——不僅能夠持續交付產品，還能使交付的產品與客戶的需求相匹配。今年我們看到了許多這樣的表現，我們很高興能夠繼續推進各個業務板塊的盈利。

So with that, I'm going to close out and wish you all happy holidays as we close out the year.

那麼，我就說到這裡，祝大家節日快樂，也祝大家在年末之際節日快樂。