Paramount Group Inc (PGRE) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Paramount Group second-quarter 2024 earnings conference call. (Operator Instructions) A question-and-answer session will follow the formal presentation. Please note that this conference call is being recorded today, August 1, 2024.

美好的一天，女士們先生們。謝謝你的支持。歡迎參加派拉蒙集團 2024 年第二季財報電話會議。（操作員說明）正式示範之後將進行問答環節。請注意，本次電話會議於今天（2024 年 8 月 1 日）錄製。

I'll now turn the call over to Tom Hennessey, Vice President of Business Development and Investor Relations. Please go ahead, sir.

我現在將把電話轉給業務開發和投資者關係副總裁 Tom Hennessey。請繼續，先生。

Thank you, operator, and good morning, everyone. Before we begin, I would like to point everyone to our second-quarter 2024 earnings release and supplemental information, which were releassed yesterday. Both can be found under the heading, Financial Results in the Investors section of the Paramount Group website at www.pgre.com.

謝謝接線員，大家早安。在開始之前，我想向大家介紹我們昨天發布的 2024 年第二季財報和補充資訊。兩者均可在派拉蒙集團網站 www.pgre.com 的「投資者」部分的「財務業績」標題下找到。

Some of our our comments will be forward-looking comments within the meaning of the Federal Securities Laws. Forward-looking statements, which are usually identified by the use of words such as will, expect, should or other similar phrases are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.

我們的一些評論將是聯邦證券法含義內的前瞻性評論。前瞻性陳述通常透過使用「意願」、「期望」、「應該」或其他類似短語等詞彙來識別，這些陳述面臨眾多風險和不確定性，可能導致實際結果與我們的預期有重大差異。

Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.

因此，您在解釋和依賴它們時應該小心謹慎。我們建議您參閱我們向 SEC 提交的文件，以更詳細地討論可能影響我們未來經營業績和財務狀況的風險。

During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our second quarter 2024 earnings release and our supplemental information.

在電話會議期間，我們將討論我們的非公認會計準則衡量標準，我們相信這些衡量標準有助於評估公司的營運績效。這些措施不應被孤立地考慮或取代我們根據公認會計準則編制的財務表現。我們的 2024 年第二季財報發布和補充資訊中提供了這些指標與最直接可比較的 GAAP 指標的調整表。

Hosting the call today, we have Mr. Albert Behler, Chairman, CEO and President of the company; Wilbur Paes, Chief Operating Officer, Chief Financial Officer and Treasurer; and Peter Brindley, Executive Vice President and Head of Real Estate. Management will provide some opening remarks, and we will then open the call to questions.

今天主持電話會議的是公司董事長、執行長兼總裁 Albert Behler 先生； Wilbur Paes，營運長、財務長兼財務主管；執行副總裁兼房地產主管 Peter Brindley。管理層將發表一些開場白，然後我們將開始提問。

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

這樣，我會將電話轉給艾伯特。

Thank you, Tom, and thank you all for joining us today. Yesterday, we reported core FFO of $0.20 per share for the second quarter, in line with consensus. Operationally, we had another solid quarter of leasing activity. We executed leases of approximately 198,500 square feet, bringing our year-to-date leasing volume to about 475,000 square feet. This represents our strongest second quarter and first half of leasing since 2020, demonstrating the continued strength and appeal of our high-quality portfolio.

謝謝你，湯姆，也謝謝大家今天加入我們。昨天，我們報告第二季度核心 FFO 為每股 0.20 美元，與市場共識一致。在營運方面，我們的租賃活動又一個穩健的季度。我們執行了約 198,500 平方英尺的租賃，使我們年初至今的租賃量達到約 475,000 平方英尺。這是我們自 2020 年以來最強勁的第二季和上半年租賃業務，展現了我們高品質投資組合的持續實力和吸引力。

We continue to make progress on our availability in New York, where leasing activity during the quarter totaled approximately 178,000 square feet. We are particularly encouraged by the steady flow of inquiries and tours we are seeing, which we believe will continue to translate into further leasing success in the coming quarters.

我們在紐約的可用性方面繼續取得進展，該季度的租賃活動總計約 178,000 平方英尺。我們看到穩定的諮詢和參觀流量尤其令我們感到鼓舞，我們相信這將在未來幾季繼續轉化為進一步的租賃成功。

We are seeing strong demand from a diverse range of tenants, especially financial services and law firms. The momentum we are experiencing across our New York portfolio reinforces our confidence in the enduring appeal of high-quality, well-located office spaces in prime submarkets. I can announce that we officially opened Paramount Club at 13016 Avenue, during the second quarter.

我們看到來自不同領域的租戶的強勁需求，尤其是金融服務和律師事務所。我們在紐約的投資組合所經歷的勢頭增強了我們對優質子市場中優質、位置優越的辦公空間的持久吸引力的信心。我可以宣布，我們在第二季在大道 13016 號正式開設了派拉蒙俱樂部。

This exclusive amenity offering has been extremely well received by our tenants and is proving to be a significant differentiator in the market. Paramount Club is not only enhancing the workplace experience for our existing tenants, but is also playing a crucial role in attracting new tenants to our portfolio. Our ability to attract and retain top-tier tenants is a testament to the strength of our portfolio and our team's leasing expertise.

這種獨特的便利設施受到了我們租戶的熱烈歡迎，並被證明是市場上的一個顯著差異化因素。派拉蒙俱樂部不僅增強了我們現有租戶的工作體驗，而且在吸引新租戶加入我們的投資組合方面也發揮著至關重要的作用。我們吸引和留住頂級租戶的能力證明了我們的投資組合實力和團隊的租賃專業知識。

I'm also thrilled to share that on July 18th, we celebrated the grand opening of the highly anticipated Michelin star rated in Taipan restaurant. Set under the iconic glass cube in the plaza of our headquarters at 1633 Broadway in Taipan adds a new layer of excitement to our curated offerings.

我也很高興與大家分享，7 月 18 日，我們慶祝了備受期待的米其林星級餐廳 Taipan 的盛大開幕。位於大班百老匯 1633 號總部廣場的標誌性玻璃立方體下方，為我們精心策劃的產品增添了新的興奮感。

The buzz surrounding the opening has been tremendous, and we couldn't be happier. We invite you to visit and experience a culinary sensation first hand. The opening of these two unique and outstanding amenities will further enhance the tenant experience and elevate our portfolio in ways that are distinguishing it for both our current tenants and prospective tenants alike.

開幕式周圍的喧囂聲非常大，我們高興極了。我們邀請您前來參觀並親身體驗美食。這兩個獨特而出色的設施的開幕將進一步增強租戶體驗，並提升我們的產品組合，使我們的現有租戶和潛在租戶都脫穎而出。

These are the types of exclusive amenities that resonate with today's discerning tenants. As a flight to quality persists, we believe our portfolio is well positioned to capture a disproportionate share of demand, driving occupancy improvement and at times, allowing us to push rents across our New York portfolio.

這些獨特的設施能夠引起當今挑剔的租戶的共鳴。隨著對品質的追求持續存在，我們相信我們的投資組合處於有利位置，可以捕獲不成比例的需求份額，推動入住率改善，有時使我們能夠提高紐約投資組合的租金。

As in New York, the ongoing flight to quality in the office market continues to play to our strength in San Francisco. There we are seeing a clear preference for Class A, amenity-rich buildings in prime locations, precisely the type of assets in our portfolio.

與紐約一樣，辦公室市場對品質的持續追求繼續發揮我們在舊金山的優勢。我們看到人們對黃金地段設施豐富的甲級建築的明顯偏好，這正是我們投資組合中的資產類型。

Our properties with a state-of-the-art infrastructure, large and efficient floor plates and desirable locations are increasingly attractive to tenants seeking to upgrade their office space. The market in San Francisco remains tough and behind New York. During the quarter, we signed approximately 20,500 square feet of leases in San Francisco, which resulted in total leases executed during the first half of the year of approximately 180,000 square feet.

我們的物業擁有最先進的基礎設施、寬敞高效的樓板和理想的位置，對尋求升級辦公​​空間的租戶越來越有吸引力。舊金山市場依然嚴峻，落後於紐約。本季度，我們在舊金山簽署了約 20,500 平方英尺的租賃合同，這使得上半年執行的租賃總量約為 180,000 平方英尺。

While leasing velocity remains below long-term averages, we are seeing some encouraging signs that demand is picking up. San Francisco remains a center for premier tech talent with high growth potential and is a clear global front runner for VC funding to AI companies. Our high-quality portfolio is well positioned to capture outsized market share as the recovery persists.

儘管租賃速度仍低於長期平均水平，但我們看到了一些令人鼓舞的跡象，表明需求正在回升。舊金山仍然是具有高成長潛力的頂尖科技人才的中心，並且是人工智慧公司風險投資的明顯全球領導者。隨著復甦的持續，我們的高品質投資組合已做好準備，能夠佔據巨大的市場份額。

Turning to our balance sheet. We continue to maintain a strong liquidity position with approximately $409 million in cash and restricted cash at our share, excluding noncore assets, along with the full $750 million available on our revolving credit facility.

轉向我們的資產負債表。我們繼續保持強勁的流動性頭寸，我們擁有約 4.09 億美元的現金和限制性現金（不包括非核心資產），以及我們的循環信貸額度可用的 7.5 億美元。

While the broader transaction market remains subdued, we are beginning to see early signs of increased activity. The volume of potential deals in the pipeline is gradually expanding, suggesting a possible shift towards a more dynamic environment in the coming year.

雖然更廣泛的交易市場仍然低迷，但我們開始看到活動增加的早期跡象。潛在交易量正在逐漸擴大，顯示來年可能會轉向更具活力的環境。

We anticipate that the white BEITs have spreads, which have historically kept many market participants on the sidelines may start to converge. This could potentially unlock more transaction opportunities. Furthermore, the prolonged period of elevated interest rates may lead to an uptick in distressed assets coming to market, potentially creating attractive acquisition prospects.

我們預計，白色 BEIT 存在價差，而歷史上使許多市場參與者保持觀望的價差可能會開始趨同。這可能會釋放更多交易機會。此外，長期的高利率可能會導致進入市場的不良資產增加​​，從而可能創造有吸引力的收購前景。

In this evolving landscape, we maintain our disciplined approach to capital allocation. We are strategically positioned to capitalize on external growth opportunities, particularly those in partnership with third parties where we can leverage our extensive market knowledge and disciplined investment approach.

在這個不斷變化的環境中，我們保持嚴格的資本配置方法。我們的策略定位是利用外部成長機會，特別是與第三方合作的機會，我們可以利用我們廣泛的市場知識和嚴格的投資方法。

Our strong balance sheet and ample liquidity position as well to act on attractive opportunities should they arise. In closing, we had a solid performance this quarter and remain confident in our strategy. Our high-quality assets in prime locations continue to outperform the broader market, and we are well positioned to capitalize on the ongoing flight to quality in our core markets.

我們強大的資產負債表和充足的流動性頭寸，以及在出現有吸引力的機會時採取行動。最後，我們本季表現穩健，並對我們的策略保持信心。我們在黃金地段的優質資產繼續跑贏大盤，並且我們處於有利位置，可以利用核心市場持續追求優質的趨勢。

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

這樣，我就把電話轉給彼得。

Thanks, Albert, and good morning. During the second quarter, we leased approximately 198,500 square feet with approximately 178,000 square feet in New York and approximately 20,500 square feet in San Francisco. The weighted average term of leases signed during the second quarter was 8.6 years.

謝謝，阿爾伯特，早安。第二季度，我們租了約 198,500 平方英尺，其中紐約約 178,000 平方英尺，舊金山約 20,500 平方英尺。第二季簽訂的租賃加權平均期限為8.6年。

During the second quarter, three of the leases we completed occurred at 1301 Avenue of the Americas totaling more than 92,000 square feet, two of which were with new financial service-based companies, and the third was with a law firm that continues to expand in the building. Approximately 60% of this leasing activity was on vacant space and the balance was on space that was otherwise scheduled to expire in 2025.

第二季度，我們完成的三份租賃位於美洲大道1301 號，總面積超過92,000 平方英尺，其中兩份是與新的金融服務公司簽訂的，第三份是與一家在2019 年繼續擴張的律師事務所簽訂的。約 60% 的租賃活動是空置空間，其餘空間則計劃於 2025 年到期。

Over the past 12 months, we have made substantial progress at 1301 Avenue of the Americas with leased occupancy at the building improving from 79.8% leased to 89.5% or 970 basis points. In both New York and San Francisco, tenants continue to pursue premium, centrally located, amenity-rich buildings run by best-in-class, well-regarded and well-capitalized owners.

在過去 12 個月中，我們在美洲大道 1301 號大樓取得了重大進展，該建築的租賃率從 79.8% 提高到 89.5%，即 970 個基點。在紐約和舊金山，租戶繼續追求由一流、受人尊敬且資本雄厚的業主經營的優質、位於市中心、設施豐富的建築。

This accelerating trend renews us to our benefit, enabling us to capitalize on these market dynamics and expand our leasing pipeline. Our priorities remain centered on maintaining exceptional tenant relationships, securing renewals for upcoming lease expirations and leasing our vacant space.

這種加速的趨勢使我們重新受益，使我們能夠利用這些市場動態並擴大我們的租賃管道。我們的首要任務仍然集中在維持良好的租戶關係、確保即將到期的租約續約以及租賃我們的空置空間。

At quarter end, our same-store portfolio-wide leased an occupancy rate at share, excluding noncore assets, was 86.3%, down 280 basis points from last quarter and down 440 basis points year-over-year, driven by the previously discussed and known move-out of our second largest tenant at share Clifford Chance at 31 West 52nd Street.

截至季末，我們的同店投資組合範圍內的租賃份額（不包括非核心資產）入住率為 86.3%，較上季度下降 280 個基點，同比下降 440 個基點，原因是之前討論的和已知我們第二大租戶搬離高偉紳律師事務所位於西52 街31 號的股份。

Turning to our markets. Midtown's second quarter leasing activity of approximately 4 million square feet, excluding renewals, surpassed the five-year quarterly average by 21%. Leasing activity during the second quarter exceeded the five-year quarterly average for the third consecutive quarter, the first three quarter streak since 2018.

轉向我們的市場。中城第二季的租賃活動約為 400 萬平方英尺（不包括續約），比五年季度平均高出 21%。第二季的租賃活動連續第三個季度超過五年季度平均水平，這是自 2018 年以來的首次連續三個季度的增長。

The steady improvement of the demand profile in Midtown has been most evident within Midtown's core submarkets as tenants increasingly pursue the highest quality real estate with close proximity to public transportation. Availability in Midtown remains elevated at 18.2%.

中城需求狀況的穩定改善在中城核心子市場中最為明顯，因為租戶越來越多地追求靠近公共交通的最高品質房地產。中城的空置率仍維持在 18.2% 的高位。

However, the tightening of supply on upper floors has resulted in upward pressure on rents for view space, particularly in Midtown's core submarkets. The recently opened Paramount Club at 1301 Avenue of the Americas has proven to be a key differentiator in attracting and retaining tenants.

然而，高層供應緊張導致觀景空間租金面臨上行壓力，尤其是在中城的核心次市場。最近在美洲大道 1301 號開業的派拉蒙俱樂部已被證明是吸引和留住租戶的關鍵優勢。

Membership is offered to tenants in our New York portfolio, many of whom have offered rave reviews in the early going. Brokers and prospective tenants alike have offered similar feedback referring to it as best-in-class, unlike anything else in the market. The club is bustling irrespective of the time of day as members take full advantage and incorporate the club into their Workday.

我們為紐約投資組合中的租戶提供會員資格，其中許多人在早期就給予了好評。經紀人和潛在租戶都提供了類似的回饋，稱其為同類最佳，與市場上的其他產品不同。無論一天中的任何時間，俱樂部都很熱鬧，因為會員充分利用俱樂部並將其納入他們的工作日。

Our New York portfolio is currently 86.9% leased on a same-store basis at share, down 320 basis points quarter-over-quarter and down 360 basis points year-over-year. Shifting our focus to San Francisco. San Francisco recorded more than 1.6 million square feet of leasing during the second quarter, approximately one-third of which was made up of new-to-market tenants primarily AI companies.

我們的紐約投資組合目前同店租賃率為 86.9%，季減 320 個基點，年減 360 個基點。將我們的注意力轉移到舊金山。舊金山第二季的租賃面積超過 160 萬平方英尺，其中約三分之一是新進市租戶（主要是人工智慧公司）。

Tenants in the market demand has grown to more than 6.5 million square feet, the highest it has been since Q4 2019. This increase continues to be driven by the emergence of newly funded San Francisco-based AI companies, which have become an increasingly large percentage of the demand pipeline in San Francisco.

市場需求租戶已成長至超過 650 萬平方英尺，為 2019 年第四季以來的最高水準。這一增長繼續受到舊金山新資助的人工智慧公司的出現的推動，這些公司在舊金山的需求管道中所佔的比例越來越大。

In fact, VC funding in San Francisco is on pace to reach 2022 levels north of $30 billion, much of which is going toward AI companies. Despite challenges in the market, including a record high availability of 37.1%, San Francisco remains a hotbed for top tech talent with high growth potential.

事實上，到 2022 年，舊金山的創投資金預計將達到 300 億美元以上的水平，其中大部分將流向人工智慧公司。儘管市場面臨挑戰，包括創紀錄的 37.1% 的可用性，舊金山仍然是具有高成長潛力的頂尖技術人才的溫床。

Our high-quality portfolio is well positioned to capture outsized market share as the recovery continues in San Francisco. At quarter end, our San Francisco portfolio was 84.2% leased on a same-store basis at share, down 130 basis points quarter-over-quarter and down 740 basis points year-over-year. We look forward to updating you on our progress.

隨著舊金山經濟的持續復甦，我們的高品質產品組合已做好準備，能夠佔據巨大的市場份額。截至季末，我們舊金山的投資組合的同店租賃率為 84.2%，季減 130 個基點，年減 740 個基點。我們期待向您通報我們的最新進展。

With that summary, I will turn the call over to Wilbur, who will discuss the financial results.

有了這份總結，我會將電話轉給威爾伯，他將討論財務表現。

Thank you, Peter, and good morning, everyone. Yesterday, we reported core FFO of $0.20 per share, which is in line with second quarter Wall Street consensus estimates. Same-store growth in the quarter was essentially flat, up 0.1% on a cash basis and slightly negative at 1.3% on a GAAP basis.

謝謝你，彼得，大家早安。昨天，我們報告核心 FFO 為每股 0.20 美元，這與第二季度華爾街的一致預期一致。本季同店成長基本持平，以現金計算成長 0.1%，以 GAAP 計算略有下降，為 1.3%。

During the second quarter, we executed 15 leases totaling 198,505 square feet at a weighted average starting rent of $74.55 per square foot and for a weighted average lease term of 8.6 years. Mark-to-Market on 98,862 square feet of second-generation space was positive 1% on a cash basis and negative 3.4% on a GAAP basis.

第二季度，我們簽署了 15 份租賃合同，面積總計 198,505 平方英尺，加權平均起始租金為每平方英尺 74.55 美元，加權平均租賃期限為 8.6 年。98,862 平方英尺的第二代辦公空間的市價以現金計算為正值 1%，以 GAAP 計算為負值 3.4%。

This Mark-to-Market data represents only our New York portfolio as the 20,647 square feet leased in our San Francisco portfolio represented leases executed within our noncore assets at Market Center and 111 Sutter Street.

以市值計價的數據僅代表我們紐約的投資組合，而舊金山投資組合中租賃的 20,647 平方英尺代表我們在市場中心和薩特街 111 號非核心資產內執行的租賃。

Turning to our balance sheet. Our liquidity position remains strong at over $1.1 billion. We ended the quarter with a little over $409 million of cash and restricted cash and the full $750 million of undrawn capacity under our revolver. Our share of the $409 million of cash and restricted cash excludes amounts from noncore assets.

轉向我們的資產負債表。我們的流動性狀況依然強勁，超過 11 億美元。截至本季末，我們的現金和限制性現金略多於 4.09 億美元，而我們的左輪手槍則擁有 7.5 億美元的未動用能力。我們在 4.09 億美元現金和限制性現金中的份額不包括非核心資產的金額。

During the quarter, we once again extended the mortgage loan on 111 Sutter Street and pushed out the maturity to December 2025. We did this on the same terms as the previous extension, namely that all interest shortfalls will continue to accrete to the principal balance of the loan with the lender funding all capital needed to stabilize the asset, thereby protecting our balance sheet, all while preserving optionality for our shareholders.

本季度，我們再次延長了薩特街 111 號的抵押貸款，並將到期日推遲至 2025 年 12 月。我們這樣做的條件與先前的延期相同，即所有利息缺口將繼續累加到貸款本金餘額中，貸款人為穩定資產所需的所有資本提供資金，從而保護我們的資產負債表，同時保留選擇性為了我們的股東。

Outstanding debt at quarter end was $3.6 billion at a weighted average interest rate of 3.92% and a weighted average maturity of 3.1 years. 87% of our debt is fixed and has a weighted average interest rate of 3.31% and the remaining 13% is floating and has a weighted average interest rate of 8.01%. These figures, of course, include the debt on the noncore assets.

季末未償債務為 36 億美元，加權平均利率為 3.92%，加權平均期限為 3.1 年。我們87%的債務是固定的，加權平均利率為3.31%，其餘13%是浮動的，加權平均利率為8.01%。當然，這些數字包括非核心資產的債務。

Excluding debt on noncore assets, outstanding debt was $3.24 billion at a weighted average interest rate of 3.89% at a weighted average maturity of 3.4 years, and we have no debt maturities until 2026. Please refer to page 39 in our supplemental package for the impact of non-core debt on our capital structure with additional information.

不包括非核心資產債務，未償債務為 32.4 億美元，加權平均利率為 3.89%，加權平均期限為 3.4 年，且我們在 2026 年之前沒有債務到期日。請參閱我們補充方案中的第 39 頁，以了解非核心債務對我們資本結構的影響以及更多資訊。

Turning now to our 2024 guidance. Based on our year-to-date results as well as our outlook for the remainder of the year, we have improved our same-store cash and GAAP NOI growth outlook by 100 basis points and 50 basis points, respectively. The improvement in our same-store results is offset by slightly higher interest and G&A expense. As such, we have maintained the midpoint of our core FFO guidance of $0.78 per share by narrowing the range to be between $0.76 and $0.80 per share.

現在轉向我們的 2024 年指導。根據我們今年迄今的業績以及今年剩餘時間的展望，我們將同店現金和 GAAP NOI 成長前景分別提高了 100 個基點和 50 個基點。同店業績的改善被利息和一般管理費用的略微增加所抵消。因此，我們將核心 FFO 指引的中點縮小至每股 0.76 美元至 0.80 美元，從而維持每股 0.78 美元的中點。

Please refer to page 6 of our supplemental package for additional information regarding the changes in assumptions underlying our guidance. With that, operator, please open the lines for questions.

請參閱我們的補充資料包的第 6 頁，以了解有關我們指導的假設變更的更多資訊。那麼，接線員，請打開提問線路。

At this time, we'll be conducting a question-and-answer session. (Operator Instructions) Stephen Sakwa, Evercore ISI.

此時，我們將進行問答環節。（操作員說明）Stephen Sakwa，Evercore ISI。

Either for Peter or Wilbur, I guess it's kind of a two-parter. Number one, can you just kind of remind us some of the large known vacates that you guys have maybe between now and the end of '25? And if there are some things that are not necessarily resolved, maybe just remind us kind of what are some potential things that could become known vacates over the next 18 months?

無論是對彼得還是威爾伯來說，我想這都是兩個人的關係。第一，您能提醒我們一些從現在到 25 年底之間可能存在的已知的大型職缺嗎？如果有些事情不一定能解決，也許只是提醒我們，在接下來的 18 個月內，哪些潛在的事情可能會被人們所知？

And I guess the corollary to that is, can you just help us think through the sign lease, not commence figure as we try and think about the occupancy bridge over the next 18 months?

我想推論是，您能否幫助我們考慮標誌租賃，而不是在我們嘗試考慮未來 18 個月的入住橋時開始計算？

Good morning Steve, this is Peter. I'll start by saying that Google and JPMorgan make up 4% of our 2025 lease expirations. And as we now know Google will vacate the entirety of one market, which is roughly 340,000 square feet, 168,000 square feet at share.

早安，史蒂夫，我是彼得。首先我要說的是，Google和摩根大通占我們 2025 年租約到期的 4%。據我們所知，谷歌將騰出整個市場，該市場面積約為 340,000 平方英尺，共享 168,000 平方英尺。

And as it relates to JPMorgan at One Front Street, we are in discussions with them. We don't expect to keep them in the entirety of the 241,000 square feet that expires in 2025. We do expect to keep them in a portion of it. But that is the largest block, if you will, when you think about our 2025 lease expiration.

由於這與 One Front Street 的摩根大通有關，我們正在與他們進行討論。我們預計不會將它們保留在 2025 年到期的 241,000 平方英尺的全部土地中。我們確實希望將它們保留在其中。但如果你願意的話，當你考慮我們 2025 年的租約到期時，這是最大的區塊。

Beyond that, we are having constructive conversations with a number of tenants that have lease expirations in 2025 and working very hard, and we believe we will be successful to keep a good portion of the remaining ‘25 lease expirations.

除此之外，我們正在與一些租約將於 2025 年到期的租戶進行建設性對話，並且非常努力地工作，我們相信我們將成功保留剩餘的很大一部分（25 年租約到期）。

Sure. And Steve, to the second part of your question, as far as signed leases, you'll see there's a big Delta, and I'm sure you've seen between 1301 leased and occupied percentage and also at 31 West. That will start to narrow through the end of the year relative to those signed leases and start to hit really in the early part of ‘25 at 1301, it's the big Citizens Bank deal that was done at 1325. It was the large Wilsons expansion that was done there.

當然。史蒂夫，對於你問題的第二部分，就簽署的租約而言，你會看到有一個很大的三角洲，我相信你已經看到了 1301 的租賃和占用百分比以及 31 West 之間的百分比。相對於已簽署的租約，這一數字將在年底開始縮小，並在 25 年初的 1301 美元開始真正發揮作用，這是在 1325 美元完成的公民銀行大交易。這是威爾遜在那裡進行的大型擴建。

So is there just kind of a rough figure, Wilbur? Or should we just kind of extrapolate between the occupancy and the lease and assume some of that, but not all of that will commence over the next kind of, say, 12 months?

那麼威爾伯，有一個粗略的數字嗎？或者我們應該在入住率和租約之間進行推斷，並假設其中一些，但並非所有這些都將在接下來的一段時間內（例如 12 個月）開始？

Yes. I think you will need to extrapolate, Steve. I don't want to get into precise figures of what that contribution will be.

是的。我認為你需要進行推斷，史蒂夫。我不想透露具體的貢獻數字。

Okay. And then maybe, Albert, you mentioned still the dislocation in the capital markets transaction market, but you're starting to see more potential things come to market. I'm just given where your kind of capital structure sits today and kind of where your stock price is, I'm sure you wouldn't want to issue equity to do deals at these levels. But how would you think about funding deals? And just I guess, what would the economics of the deal sort of have to look like to kind of get you guys to jump in?

好的。也許，艾伯特，你仍然提到了資本市場交易市場的混亂，但你開始看到更多潛在的東西進入市場。我只是知道你們今天的資本結構以及你們的股價，我相信你們不會想在這些水準上發行股票來進行交易。但您如何看待融資交易？我猜想，這筆交易的經濟性必須是什麼樣子才能讓你們參與其中？

Yes. Steve, as said over the last couple of earnings calls, we are looking at potential opportunities very carefully in the Class A, that's where we are interested in Trophy. There are very few transactions happening so far. There's still a big gap bid ask, which seems to be narrowing. And we will not be using a lot of our equity of our liquidity that we currently have on balance sheet.

是的。史蒂夫，正如在過去幾次財報電話會議上所說，我們正在非常仔細地尋找 A 級的潛在機會，這就是我們對 Trophy 感興趣的地方。到目前為止，發生的交易很少。買賣價差仍然很大，而且似乎正在縮小。我們不會使用目前資產負債表上的大量流動資金。

So we will invest asset-light as we call it, and use outside venture capital that seems to be more interested at this point in the cycle. There are a number of, I would say, especially foreign, but especially also private investors, less institutional ones who are considering to get into the market.

因此，我們將投資我們所謂的輕資產，並利用在周期的此時點似乎更感興趣的外部風險資本。我想說，有很多投資者，尤其是外國投資者，也包括私人投資者，而非機構投資者，正在考慮進入市場。

And we will use these relationships that we have developed over the last many years to look at investment opportunities. It's at a lower point in San Francisco at this point, and you have to have the hope that San Francisco is coming back, which I think is behind in comparison to New York. So we are looking at both markets, but we will be very, very careful before we pull the trigger.

我們將利用過去多年建立的這些關係來尋找投資機會。此時舊金山處於較低的水平，你必須希望舊金山能夠回歸，我認為與紐約相比，它落後了。因此，我們正在關注這兩個市場，但在啟動之前我們會非常非常小心。

Thank you, Steve.

謝謝你，史蒂夫。

Vikram Malhotra, Mizuho.

維克拉姆·馬爾霍特拉，瑞穗。

I guess just first on two specific properties. I think at 1633 Showtime has a bunch of space on the sublet market. I'm just wondering if you've had any discussions on their plans? I know the lease doesn't come up for a while, but just curious given the size at 1633.

我想首先是兩個特定的屬性。我認為 1633 Showtime 在轉租市場上有很大的空間。我只是想知道你是否就他們的計劃進行過任何討論？我知道租約暫時不會出現，但考慮到 1633 的大小，我只是好奇。

And then any update on the retail block on is Avenue, it's fairly large, but I know there are a few large blocks there. So any update would be helpful on leasing prospects?

然後，關於大道上零售街區的任何更新，它相當大，但我知道那裡有幾個大街區。那麼任何更新都會對租賃前景有所幫助嗎？

We have more activity on that retail space at 712 Fifth Avenue than at any point since we began marketing it. Certainly, there have been a lot of productive deals that have transpired on Upper Fifth and there's not a whole lot of supply. Certainly, nothing like ours as I think everybody would agree.

自從我們開始行銷以來，我們在第五大道 712 號零售空間上的活動比任何時候都多。當然，上第五區發生了很多富有成效的交易，但供應量並不多。當然，沒有像我們這樣的，我想每個人都會同意。

So nothing to report just yet in this regard. But we feel like there's really very nice activity and we may have an opportunity to convert with a really exciting couple of tenants. So more to come.

所以在這方面還沒有什麼好報告的。但我們覺得這裡的活動真的非常好，我們可能有機會與一些非常令人興奮的租戶一起轉換。未來還會有更多。

Vikram, as mentioned again, a couple of times before, we leased a nice part of that retail after any Amy Bendel moved out to Harry Winston. And the rent we got is nearly at the level that that Amy Bendel had paid previously. We want to be very careful to find the right tenant. It's most probably in the luxury segment, and it has to fit the asset class of the rest of the office building. And Peter and his team have very decent interest because there's not much of square footage available on Fifth of that kind of quality.

維克拉姆，正如之前幾次提到的，在艾米·本德爾 (Amy Bendel) 搬到海瑞溫斯頓 (Harry Winston) 後，我們租下了該零售店的很大一部分。我們得到的租金幾乎是艾米·本德爾以前支付的水平。我們要非常小心地尋找合適的租戶。它很可能屬於豪華細分市場，並且必須適合辦公大樓其他部分的資產類別。彼得和他的團隊對此非常感興趣，因為第五大道上沒有足夠的可用面積。

And maybe just one more. Peter, you alluded to maybe some early signs of improvement in San Francisco, in particular. And just generally from your peers, things seem very slow pipeline-wise leasing velocity wise. I'm just wondering, can you elaborate on whether it's AI or traditional tech? What are you looking for, what green shoots may you be seeing?

也許還有一個。彼得，你特別提到了舊金山可能出現的一些早期改善跡象。一般來說，從同業看來，管道方面的租賃速度似乎非常緩慢。我只是想知道，你能詳細說明一下它是人工智慧還是傳統技術嗎？您在尋找什麼？

The green shoots, Vikram, are that the demand pipeline, the tenants in the market continues to increase. Venture capital funding continues to find its way to San Francisco-based companies. There are new companies entering the market. In fact, one-third of the leasing activity in the second quarter was made up of new tenants to the market. AI-based companies, of course, we're all talking about.

維克拉姆，新芽是需求管道、市場租戶持續增加。創投資金繼續流向舊金山的公司。有新公司進入市場。事實上，第二季三分之一的租賃活動是由市場上的新租戶組成的。當然，我們都在談論基於人工智慧的公司。

I think the most important thing is that they acknowledge the importance of the office. They are, in fact, looking to secure office space to allow for collaboration in order to execute on their lofty plans, of course. So I think that is all trending very nicely.

我認為最重要的是他們承認辦公室的重要性。事實上，他們當然希望獲得辦公空間以進行協作，以便執行他們的崇高計劃。所以我認為這一切趨勢都非常好。

We, of course, are working our way through a lot of availability in this market to return it to healthier fundamentals. But directionally, what I am experiencing, what we as a team are experiencing in our properties is increased tour activity, increased proposals.

當然，我們正在努力透過該市場的大量供應，使其恢復到更健康的基本面。但從方向上來說，我所經歷的，我們作為一個團隊在我們的酒店所經歷的是旅遊活動的增加，建議的增加。

We have nice activity on the Google block of floors that we'll be getting back next year. And so for those reasons, we feel more optimistic today than we did going back, call it, six months. And so directionally, San Francisco seems to be moving in a better direction.

我們在 Google 樓層舉辦了精彩的活動，明年我們會再回來。因此，出於這些原因，我們今天比六個月前更加樂觀。因此，從方向上看，舊金山似乎正在朝著更好的方向發展。

Camil Bone, Bank of America.

卡米爾·博恩，美國銀行。

Good morning everyone. I saw you top the leasing target for the year and momentum seems to be picking up in New York City, but your signed activity is still tracking below the low end of guidance so far. So I was wondering if you could provide more details on how much San Francisco leasing was factored into your guidance? And if you feel anything on the demand front into July has really changed versus your expectations at the beginning of the year?

大家早安。我看到你們超出了今年的租賃目標，紐約市的勢頭似乎正在回升，但迄今為止你們的簽約活動仍低於指導的低端。所以我想知道您是否可以提供更多詳細信息，說明您的指導中考慮了多少舊金山租賃？您是否認為 7 月的需求面與您年初的預期相比確實發生了變化？

Maybe I'll just start. I don't think your statement about it trending at the low end of the guidance is true. We have leased 475,000 square feet year-to-date. To get to the midpoint, you need to lease 168,000 square feet per quarter if it was linear, and obviously, both the first and the second quarter, we're well ahead of those figures.

也許我會開始。我認為您關於其趨勢處於指導低端的說法並不正確。今年迄今我們已租用 475,000 平方英尺。要達到中點，如果是線性的，您需要每季租賃 168,000 平方英尺，顯然，無論是第一季還是第二季度，我們都遠遠領先於這些數字。

Okay. Thanks for clarifying Wilber. And Wilbur, while I have you, can you provide an update on what assumptions are factored into your interest expense guidance following the increase in this quarter? Because statements from the Fed yesterday seemed to be increasing the odds of a September cut. So are you baking any of this in?

好的。感謝威爾伯的澄清。威爾伯（Wilbur），請問您能否提供最新情況，說明本季利息支出增加後，您的利息支出指引中考慮了哪些假設？因為聯準會昨天的聲明似乎增加了 9 月降息的可能性。那你要烘烤這些嗎？

Yes. So just to put this in perspective, obviously, when we did come out with interest expense guidance that was in February. As you can imagine, at that point, there was a lot of chatter between four to five cuts in the year. That did not come to fruition.

是的。因此，顯然，當我們在 2 月確實發布利息支出指導時，我們要正確地看待這一點。正如你可以想像的那樣，在這一點上，一年中四到五次剪輯之間存在著許多爭議。但這並沒有實現。

Hence, we're tweaking assumptions based on where the Fed speak is now based on the expectation of rate cuts for the duration of the year, but it is incrementally higher relative to what we provided in the guidance. You also know the rate cap and the swap at 1301 expires in August, and that was factored into that equation as well.

因此，我們正在根據聯準會目前的講話內容調整假設，這是基於對今年期間降息的預期，但相對於我們在指導中提供的內容來說，它是逐漸升高的。您還知道利率上限和 1301 的掉期將於 8 月到期，這也已納入該等式中。

Okay. And we ran a bottoms-up analysis of office assets across New York City to see how the REITs rank relative to each other and your portfolio comes up as one of the top three platforms. But we see when demand pulls back, you can really see how the high concentration in buildings and large tenants can have a large impact to your operations.

好的。我們對紐約市的辦公資產進行了自下而上的分析，以了解房地產投資信託基金之間的相對排名以及您的投資組合如何成為三大平台之一。但我們看到，當需求回落時，您可以真正看到建築物和大型租戶的高度集中如何對您的營運產生巨大影響。

So as we look forward, can you talk about how you think about balancing this risk versus the benefits of diversification? And is there anything the team is doing to mitigate this risk?

因此，當我們展望未來時，您能談談您如何看待平衡這種風險與多元化的好處嗎？團隊正在採取什麼措施來降低這種風險？

Well I think our portfolio is pretty diversified. And if you look at the New York market, historically, it has been more and more diversified over the years. You might not remember not have been around. Many years ago, New York didn't have entertainment. It was depending mainly on prior tenants.

嗯，我認為我們的投資組合相當多元化。如果你看看紐約市場，從歷史上看，多年來它已經變得越來越多元化。您可能不記得自己曾經來過。許多年前，紐約沒有娛樂活動。這主要取決於先前的租戶。

And today, it's -- and that means mainly finance and insurance. And today, it's a very, very diversified tenant mix, and we have tech included as well. And so I think our portfolio is also quite diversified across the board. Each building is different, and we like it that way.

今天，這主要意味著金融和保險。今天，這是一個非常非常多元化的租戶組合，我們也包括技術。因此，我認為我們的投資組合也非常多元化。每棟建築都是不同的，我們喜歡這樣。

And that's typical for office buildings in this market, if you have small flow beds, it's catering to a different demand or different tenancy than larger buildings. And I think we managed it pretty well.

這對於這個市場上的辦公大樓來說是典型的，如果你有小型流動床，它可以滿足與大型建築不同的需求或不同的租賃。我認為我們做得很好。

Blaine Heck, Wells Fargo.

布萊恩·赫克，富國銀行。

I was hoping to get some color on the drivers of the increase in same-store NOI expectations given that the lease percentage outlook didn't change. So any details there would be helpful.

鑑於租賃百分比前景沒有變化，我希望了解同店 NOI 預期成長的驅動因素。所以任何細節都會有幫助。

Sure, Blaine. As you point out, we bumped same-store cash and GAAP NOI guidance 100 basis and 50 basis points, respectively, at the midpoint. You saw the results in the second quarter that aided in that and the expectation of reduced operating expenses in the second half of the year.

當然，布萊恩。正如您所指出的，我們將同店現金和 GAAP NOI 指引分別上調了 100 個基點和 50 個基點。您看到了第二季的業績，這有助於實現這一目標，並且預計下半年營運費用會減少。

That's really what drove the NOI increase. But recognize where we're trending relative to the year-to-date, Blaine, it will be negative in the second half of the year, and that comes as no surprise to everybody because Clifford Chance vacated in May of this year.

這確實是推動 NOI 成長的原因。但是布萊恩，要認識到我們相對於今年迄今為止的趨勢，下半年將會出現負值，這對每個人來說都不足為奇，因為高偉紳律師事務所已於今年五月離職。

So you're losing that. That was your second largest tenant. So the New York will be more negative in the second half of the year because of that and then you have the impending lease expiration of Leerink at 1301.

所以你正在失去它。那是你的第二大租戶。因此，紐約下半年的負面影響會更大，而且 Leerink 1301 的租約即將到期。

Right. Okay. That's helpful. And then on the lease rate guidance itself, it looks like that implies about 80 bps of improvement between June 30 and the end of the year. I guess how much of that do you have strong visibility on? And how much would you say is more kind of speculative at this point?

正確的。好的。這很有幫助。然後就租賃利率指導本身而言，這似乎意味著 6 月 30 日至年底之間將改善約 80 個基點。我猜你對其中有多少有很強的了解？在這一點上，你認為多少更具推測性？

So if you look at the lease rate, I mean, if you look at how much expirations we have throughout the rest of the year, it's about 170,000 square feet. In order to get to the midpoint of our guidance, you're talking about leasing in excess of 200,000 square feet on vacant space or about to expire space to be able to get that.

因此，如果你看一下租賃率，我的意思是，如果你看一下我們在今年剩餘時間到期的面積，大約是 170,000 平方英尺。為了達到我們指導的中點，您正在談論租用超過 200,000 平方英尺的空置空間或即將到期的空間才能獲得該空間。

I think Peter can dimension the pipeline and how much of that pipeline is on vacancy. But the reason we left that on change is because we feel good about reaching that level based on what we are seeing in the pipeline.

我認為彼得可以確定管道的尺寸以及管道中有多少是空置的。但我們之所以將其保留在變革中，是因為根據我們在管道中看到的情況，我們對達到該水平感到滿意。

Yes. I would dimension our pipeline is remaining very, very strong. Blaine, we have leases in negotiation and proposals in advanced stages for more than 300,000 square feet. A good portion of which getting to your question, is on vacant space or soon-to-be vacant space and given that we need to lease in excess of 200,000 square feet and what we refer to as occupancy increasing transactions, we believe we will get to the midpoint based on what we're currently seeing in the pipeline.

是的。我認為我們的管道仍然非常非常強大。Blaine，我們有超過 300,000 平方英尺的租約正在談判和後期階段的提案中。就您的問題而言，其中很大一部分是空置空間或即將空置的空間，鑑於我們需要租賃超過 200,000 平方英尺以及我們所說的入住率增加交易，我們相信我們會根據我們目前在管道中看到到的情況到中點。

Great. That's really helpful. And then last one, Albert, with respect to external growth through acquisitions, you talked about partnering with other investors for transactions. Can you just talk about the amount of demand you're seeing to co-invest on office investments?

偉大的。這真的很有幫助。最後，阿爾伯特，關於透過收購實現外部成長，您談到了與其他投資者合作進行交易。您能否談談您所看到的共同投資辦公大樓投資的需求量？

It sounds like these opportunities are a little bit more tangible at this point than maybe I perceived on past calls and in past meetings. Has that level of interest from institutional capital increased recently?

聽起來這些機會在這一點上比我在過去的電話會議和過去的會議上感受到的要更加切實。機構資本的興趣最近是否有增加？

Well, institutional capital is clearly not the front runner here. The capital that is looking more intensively to get into the market is private capital. You have to think about family offices, ultra-high net worth individuals and especially office investors who have not been in office so far because many others are dealing with the issues that they have themselves.

嗯，機構資本顯然不是這裡的領跑者。更積極尋求進入市場的資本是私人資本。你必須考慮家族辦公室、超高淨值人士，尤其是迄今為止尚未上任的辦公室投資者，因為許多其他人正在處理自己的問題。

They just see the opportunity. They see the tremendous pricing advantage you have currently, if you take an asset.

他們只是看到了機會。如果您購買一項資產，他們會看到您目前擁有的巨大定價優勢。

So that is getting more and more active because they have been on the sidelines for a while because the phenomenon in America of work from home has been very consistent for a while and surprisingly long, but it seems to be that the office attendance is improving definitely in New York, but also in San Francisco.

所以這種情況變得越來越活躍，因為他們已經觀望了一段時間了，因為美國在家工作的現像已經持續了一段時間，而且持續時間驚人地長，但辦公室出勤率似乎確實在提高在紐約，也在舊金山。

And I think that's something that many especially foreign investors were surprised by for a long time. How long that persisted because if you travel to other countries, especially in Asia, everybody is back to the office. And here, it's taking a while. So that was, I think, the biggest negative that was shunning investors away from this market.

我認為這是許多人尤其是外國投資者長期以來感到驚訝的事情。這種情況持續了多久，因為如果你去其他國家，尤其是亞洲，每個人都會回到辦公室。而在這裡，這需要一段時間。所以，我認為，這是讓投資人遠離這個市場的最大負面影響。

Ronald Kamdem, Morgan Stanley.

羅納德‧卡姆德姆，摩根士丹利。

Just two quick ones for me. The commentary on the ‘25 exploration for San Francisco is super helpful. Can you sort of do the same thing for New York, though, whether it's Charter or Wilson, insane or Vertis? Or any of those sort of known vacates or still negotiations? Or what's the thinking there?

對我來說只有兩個快速的。舊金山 25 號探索的評論非常有幫助。不過，你能為紐約做同樣的事情嗎，無論是查特還是威爾森、瘋狂還是維蒂斯？或任何已知的退出或仍在談判中？或者說那裡的想法是什麼？

Sure, Ron. So we have what equates to about 450,000 square feet or 6.8% expiring at share in New York in 2025. I don't want to give away too much by way of specifics, but Charter is a very important tenant of ours long standing relationship.

當然，羅恩。因此，我們在紐約擁有約 45 萬平方英尺或 6.8% 的土地，將於 2025 年到期。我不想透露太多細節，但查特是我們長期關係中非常重要的租戶。

They expire for about 100,000 square feet and '25, we're having constructive conversations with them. Wilson Sonsini, as you may know, relocated to 31 West 52nd Street, which effectively which helps derisk the known move out of Clifford Chance.

他們的面積約為 100,000 平方英尺，25 年，我們正在與他們進行建設性的對話。如您所知，威爾遜桑西尼 (Wilson Sonsini) 搬遷至西 52 街 31 號，這實際上有助於消除已知的從高偉紳律師事務所搬出的風險。

But I can tell you that those two floors that they have vacated at 1301 are highly coveted given that a lot of the availability in Midtown is disproportionately located on lower floors. There's just not a whole lot of rate space, high up like those floors are. Vertis is now a tenant at 1301 Avenue of the Americas.

但我可以告訴你，他們在 1301 騰出的那兩層樓非常令人垂涎，因為中城的許多空房都不成比例地位於較低樓層。只是沒有那麼多的價格空間，像那些樓層一樣高。Vertis 現在是美洲大道 1301 號的租戶。

So we will get those two floors back at 31 West, but they have chosen to remain with Paramount and have most recently transacted at 1301. Those floors will be contiguous to the block of space that we're getting back from Clifford Chance.

因此，我們將在 31 West 拿回這兩層樓，但他們選擇留在派拉蒙，並且最近以 1301 成交。這些樓層將與我們從高偉紳律師事務所拿回的空間區塊相鄰。

And because of the quality of 31 West, we have a lot of confidence that we'll have success leasing up that block of space to credit tenants. And we're excited about the offering and excited about the current level of activity. But those you really called them out. Those are the biggest moving parts of the 450,000 square feet that we have coming back to us in '25.

由於 31 West 的質量，我們非常有信心能夠成功地將這塊空間出租給信用租戶。我們對產品和目前的活動水平感到興奮。但那些你真正叫出來的人。這些是我們在 25 年回歸的 450,000 平方英尺的最大移動部分。

Okay. Great. Super helpful. And then on the just on the noncore assets at 111 Market Center. When should we expect those to actually be off the books?

好的。偉大的。超有幫助。然後是111市場中心的非核心資產。我們什麼時候該期望這些內容真正脫離帳簿？

Is that like 2025? Or are there still negotiations? Just trying to figure out when can you actually be like take them off the books?

那是2025年嗎？或者說還在談判中？只是想知道什麼時候你才能真正把它們從書本上刪除？

Well, there are still negotiations. So I don't think we want to predict at this point what's happening there. And in the loan at 111 stage extended for 18 months. So that's still open to what's happening there.

嗯，還有談判。所以我認為我們現在不想預測那裡會發生什麼。並在貸款111階段延長了18個月。所以對於那裡發生的事情仍然持開放態度。

Yes. Albert is right. Obviously, 111 Sutter that got extended to December '25 run market center. We are in negotiations. These things can take a while.

是的。阿爾伯特是對的。顯然，延長至25年12月的111薩特跑在市場中心。我們正在談判中。這些事情可能需要一段時間。

You have multiple banks in these processes, and you have to first be in default and then the banks have to notify that you're on default and reserve your rights and go through the process.

在這些流程中，您有多家銀行，您必須先違約，然後銀行必須通知您違約並保留您的權利並完成流程。

(Operator Instructions) Dylan Burzinski, Green Street.

（操作員指示）Dylan Burzinski，格林街。

Just trying to look at sort of expectations for net effective rents over the next four months, two years? I mean, is it your expectation that we'll continue to see pressure on this front? Or? And I guess it probably differs by whether it's in New York or San Francisco, but just sort of trying to get a sense for where your guys' expectations for net effective rents are across your portfolio?

只是想看看未來四個月、兩年內淨有效租金的預期？我的意思是，您是否期望我們會繼續面臨這方面的壓力？或者？我想，無論是在紐約還是在舊金山，情況可能會有所不同，但只是想了解一下你們的投資組合中你們對淨有效租金的期望在哪裡？

So I would think that we are pretty close to maybe the bottom and New York already improving, especially for. And do you have to differentiate between Class A and Class B and Trophy and for the better and the difficult buildings. I think for the worst buildings, this will be still a struggle for longer to come.

所以我認為我們已經非常接近底部了，紐約已經在進步，尤其是對於。還有你必須區分A級和B級以及獎盃以及更好和困難的建築嗎？我認為對於最糟糕的建築來說，在未來更長的時間內這仍將是一場鬥爭。

In San Francisco, we might be a little bit behind, and that will take a little longer because also the vacancy for the entire market is at a higher level. But even there for Class A assets, it might be close to the bottom in San Francisco as well.

在舊金山，我們可能會有點落後，而且需要更長的時間，因為整個市場的空置率也處於較高水平。但即使是 A 級資產，舊金山也可能接近底層。

Appreciate that color. And then going back to JPMorgan's lease, I realize that you guys are still in discussions with them. But I mean, do you sense that they'll give back more than 50% of their space or?

欣賞那個顏色。然後回到摩根大通的租約，我意識到你們仍在與他們討論。但我的意思是，你覺得他們會回饋超過 50% 的空間嗎？

Dylan, I think we, at this point, assume that it will be more than 50% of their 2025 space expiring, which is the 241,000 square feet. I do think it will be probably more than 50%. But as I said, they will keep some component, we believe, and those are the discussions that we're having.

Dylan，我認為我們目前假設 2025 年 50% 以上的空間（即 241,000 平方英尺）將到期。我確實認為可能會超過50%。但正如我所說，我們相信他們會保留一些組成部分，這些都是我們正在進行的討論。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Behler for any final comment.

謝謝。女士們先生們，我們的問答環節到此結束。我將把發言權交還給貝勒先生，徵求最後的意見。