PS Business Parks, Inc. (PSB) 2021 Q4 法說會逐字稿

Good afternoon, and welcome to the PS Business Parks Fourth Quarter and Full Year 2021 Earnings Results Conference Call and Webcast. (Operator Instructions) it is now my pleasure to turn the floor over to Adeel Khan, PS's Chief Financial Officer. Sir, you may begin.

下午好，歡迎來到 PS 商業園第四季度和 2021 年全年收益結果電話會議和網絡直播。 （操作員說明）現在我很高興將發言權交給 PS 的首席財務官 Adeel Khan。先生，您可以開始了。

We thank you for joining us for PS Business Parks' Fourth Quarter 2021 Earnings Conference Call. In addition to the press release distributed yesterday after market close, we posted a supplemental package in the Investor Relations section on our website at www.psbusinessparks.com. On today's call, management's remarks and answers to your questions contain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. For more information about these risk factors, we encourage you to review our 10-K and other SEC filings. PS Business Parks assumes no obligations to update any forward-looking statements in the future. In addition, certain financial information presented on this call represents non-GAAP financial measures. Our earnings release and supplemental package present GAAP reconciliations and explanations of why such non-GAAP financial measures are useful to investors.

感謝您參加 PS Business Parks 的 2021 年第四季度收益電話會議。除了昨天收盤後發布的新聞稿外，我們還在我們網站 www.psbusinessparks.com 的投資者關係部分發布了補充包。在今天的電話會議上，管理層的評論和對您問題的回答包含前瞻性陳述，如 1995 年《私人證券訴訟改革法案》所定義。前瞻性陳述涉及可能導致實際結果與實際結果不同的風險和不確定性的事項今天討論的那些。有關這些風險因素的更多信息，我們鼓勵您查看我們的 10-K 和其他 SEC 文件。 PS Business Parks 不承擔在未來更新任何前瞻性陳述的義務。此外，本次電話會議中提供的某些財務信息代表了非 GAAP 財務措施。我們的收益發布和補充包提供了 GAAP 對賬，並解釋了為什麼此類非 GAAP 財務指標對投資者有用。

Today's conference call is hosted by PS Business Parks Interim Chief Executive Officer; Steve Wilson; Interim Chief Operating Officer, Maria Hawthorne, together with Chief Financial Officer, Adeel Khan. We will make some prepared remarks and then open the line for your questions. Now I will turn the call over to Steve.

今天的電話會議由 PS Business Parks 臨時首席執行官主持；史蒂夫·威爾遜；臨時首席運營官 Maria Hawthorne 和首席財務官 Adeel Khan。我們將發表一些準備好的評論，然後打開您的問題熱線。現在我將把電話轉給史蒂夫。

Thank you, and welcome to PS Business Parks' Fourth Quarter 2021 Earnings Call. Before we begin, on behalf of the entire PSB team and the Board of Directors, we wish Mac a speedy recovery, and the management team will continue to forward momentum from 2021 into 2022 in his absence.

謝謝，歡迎來到 PS Business Parks 的 2021 年第四季度財報電話會議。在我們開始之前，我們代表整個 PSB 團隊和董事會祝愿 Mac 早日康復，並且管理團隊將在他缺席的情況下繼續保持從 2021 年到 2022 年的勢頭。

I'll begin with a summary of our fourth quarter and full year operating results. I will then discuss PS Business Parks' positioning and general outlook for 2022. Maria will then cover our operational activity, and Adeel will follow with more details on our financial results and balance sheet. Let me start with our fourth quarter results and activity. We increased core FFO by 9.6% to $63.5 million and generated a 9% increase in core FFO per share to $1.81.

我將首先總結我們的第四季度和全年經營業績。然後，我將討論 PS Business Parks 的定位和 2022 年的總體前景。然後 Maria 將介紹我們的運營活動，Adeel 將隨後介紹我們的財務業績和資產負債表的更多細節。讓我從我們第四季度的業績和活動開始。我們將核心 FFO 增加了 9.6%，達到 6350 萬美元，每股核心 FFO 增加了 9%，達到 1.81 美元。

Our Same Park NOI grew by 6.5% on a cash basis and 8.6% on a GAAP basis. We achieved 96.4% occupancy in our Same Park portfolio, representing 270 basis point increase from prior year. We are pleased to report our leasing volume during the fourth quarter was 1.8 million square feet. Our leasing spreads were 6.1% on a cash basis and 16.4% on a GAAP basis. Our industrial assets led the way for the quarter with cash and GAAP rent growth of 11.5% and 25.7%, respectively. We redeemed all Series W preferred shares in November and paid a onetime special dividend of $4.60 per share to common stock and unitholders. We acquired 1 property during the fourth quarter for $25.5 million. Our full year 2021 investment volume was $148.5 million. We sold 3 properties during the fourth quarter for $329 million. Our full year disposition volume was $408 million. 89.6% of PS Business Parks portfolio is comprised of industrial and industrial-flex space and continues to benefit from the uniqueness of the supply-demand dynamics in our markets. Our industrial portfolio continues to flourish with an average Same Park occupancy of 97.7% for the quarter and full year Same Park cash NOI growth of 12.5% compared to last year.

我們的 Same Park NOI 按現金計算增長 6.5%，按 GAAP 計算增長 8.6%。我們的 Same Park 投資組合實現了 96.4% 的入住率，比上一年增加了 270 個基點。我們很高興地報告我們在第四季度的租賃量為 180 萬平方英尺。我們的租賃利差按現金計算為 6.1%，按 GAAP 計算為 16.4%。我們的工業資產在本季度領跑，現金和 GAAP 租金分別增長 11.5% 和 25.7%。我們在 11 月贖回了所有 W 系列優先股，並向普通股和單位持有人支付了每股 4.60 美元的一次性特別股息。我們在第四季度以 2550 萬美元的價格收購了 1 處房產。我們 2021 年全年的投資額為 1.485 億美元。我們在第四季度以 3.29 億美元的價格出售了 3 處房產。我們全年的處置量為 4.08 億美元。 89.6% 的 PS 商業園投資組合由工業和工業靈活空間組成，並繼續受益於我們市場供需動態的獨特性。我們的工業投資組合繼續蓬勃發展，本季度和全年 Same Park 的平均入住率為 97.7%，與去年相比，Same Park 現金 NOI 增長 12.5%。

Moving to production. For the year, we leased 7.4 million square feet. Cash and GAAP rent growth was 5.2% and 14.7%, respectively. Again, our industrial assets led the way with cash and GAAP rent growth of 9.4% and 21.7%, respectively. Leasing transaction cost was $3.15 per square foot for the quarter, a sequential decrease of 28%.

轉向生產。這一年，我們租用了 740 萬平方英尺。現金和 GAAP 租金增長分別為 5.2% 和 14.7%。我們的工業資產再次領漲，現金和 GAAP 租金分別增長 9.4% 和 21.7%。本季度租賃交易成本為每平方英尺 3.15 美元，環比下降 28%。

Turning to our rent collections. As of December 31, 2021, the company collected 99.9% of the revenue build during the year. The company collected $5.3 million of rent deferral repayments, representing 99.8% of the amount scheduled to be repaid through December 2021. An additional $900,000 of rent deferral repayments is scheduled to be repaid, of which $500,000 is in 2022.

轉向我們的租金收集。截至 2021 年 12 月 31 日，公司收取了年內收入增長的 99.9%。該公司收取了 530 萬美元的租金延期還款，佔計劃到 2021 年 12 月償還的金額的 99.8%。另外計劃償還 900,000 美元的租金延期還款，其中 500,000 美元在 2022 年償還。

While we remain focused on rent collections. We have not and will not lose sight of our overall strategy to create better than core returns through investment in prime, infill industrial real estate in our key markets. The key tenants of PS Business Parks strategy continue to be proven out in the midst of this pandemic. Supply-demand dynamics remain in the landlord's favor. Rental rate growth is expected to continue, and we have a platform designed for value creation beyond market rental rate growth.

雖然我們仍然專注於收租。我們沒有也不會忽視我們的總體戰略，即通過投資我們主要市場的優質、填充式工業房地產來創造比核心回報更好的回報。 PS 商業園戰略的主要租戶在這場大流行中繼續被證明是失敗的。供需動態仍然對房東有利。租金率預計將繼續增長，我們擁有一個旨在創造超越市場租金率增長的價值的平台。

Now turning to our investment activity. On November 21, 2021, we acquired Jupiter Business Park, a 141,000 square foot multi-tenant industrial park in Plano, Texas for $25.5 million. The park is currently 97.3% occupied and continues to meet our high expectations in all aspects, particularly on rent growth and renewals. We are forecasting a stabilized yield of approximately 4.3%.

現在轉向我們的投資活動。 2021 年 11 月 21 日，我們以 2550 萬美元的價格收購了位於德克薩斯州普萊諾的佔地 141,000 平方英尺的多租戶工業園區 Jupiter Business Park。該公園目前已入住 97.3%，並在各方面繼續滿足我們的高期望，尤其是在租金增長和續約方面。我們預測收益率穩定在 4.3% 左右。

On the sales front, we announced the sale of Lusk Business Park, a 371,000 square foot industrial-flex property in San Diego, for a gross price of $315 million. This sales price represents greater than 60x, or 1.6% cap rate on our 2021 estimated NOI for the property. The net proceeds and gain from Lusk Business Park sale were used for the payment of the special dividend, Series W preferred redemption and the remainder was exchanged in Port America and Jupiter Business Park. In addition, we sold a 53,000 square foot property in Beltsville, Maryland for $4.8 million and a 70,000 square foot property in Dallas for $9.1 million.

在銷售方面，我們宣布以 3.15 億美元的總價出售聖地亞哥 371,000 平方英尺的工業靈活物業 Lusk 商業園。該銷售價格代表我們 2021 年估計的該物業 NOI 的 60 倍以上或 1.6% 的上限率。出售 Lusk 商業園的淨收益和收益用於支付特別股息、W 系列優先贖回，其餘部分在美國港和木星商業園進行交換。此外，我們以 480 萬美元的價格出售了位於馬里蘭州貝爾茨維爾的一處 53,000 平方英尺的房產，並以 910 萬美元的價格出售了位於達拉斯的一處 70,000 平方英尺的房產。

We previously announced that we are marketing for sale our Royal Tech Flex Park in Dallas. We anticipate this project should close this quarter. We are actively in the market for external growth through acquisitions that meet our thresholds, particularly multi-tenant industrial parks that allow us to add value through our best-in-class leasing operating platform.

我們之前宣布，我們正在推銷我們在達拉斯的 Royal Tech Flex Park。我們預計該項目應在本季度結束。我們積極通過符合我們門檻的收購在市場上尋求外部增長，特別是多租戶工業園區，使我們能夠通過我們一流的租賃運營平台增加價值。

Moving to our development projects. We are pleased to announce our 83,000 square foot Freeport industrial development in Dallas is now 100% occupied with a stabilized yield of 11%. Our Boca Raton development in Florida and 212 development in Seattle are on track with anticipated completions in fourth quarter of 2022. Construction of Brentford at the Mile, our 411-unit multifamily development in Tysons, Virginia, is on schedule. We plan to deliver the first units in late 2022. For 2022 and beyond, we will continue to evaluate our portfolio with an eye towards improving the property mix and the income stream with a critical eye on disposing of noncore high CapEx office similar to the Royal Tech and Ammendale dispositions.

轉到我們的開發項目。我們很高興地宣布，我們在達拉斯的 83,000 平方英尺自由港工業開發項目現已 100% 入駐，收益率穩定在 11%。我們在佛羅里達州的 Boca Raton 開發項目和在西雅圖的 212 開發項目正在按計劃進行，預計將於 2022 年第四季度完工。我們在弗吉尼亞州泰森斯的 Brentford at the Mile 開發項目擁有 411 個單元，如期進行。我們計劃在 2022 年末交付第一批單位。在 2022 年及以後，我們將繼續評估我們的投資組合，著眼於改善房地產組合和收入流，並以批判的眼光看待處置類似於 Royal 的非核心高資本支出辦公室Tech 和 Ammendale 處置。

In addition, we will be nimble to capitalize on opportunities within the portfolio to seek the highest and best use, which can ultimately lead to higher densities and outsize value creation. The re-entitlement at the Mile and the South San Francisco multifamily rezone are prime examples. We now have in-house capabilities to execute these strategies and create value and have identified a number of such opportunities. We may pursue re-entitlements internally or sell to others to pursue. Lusk is a prime example.

此外，我們將靈活地利用投資組合中的機會來尋求最高和最佳用途，這最終會導致更高的密度和超大的價值創造。 The Mile 和南舊金山多戶家庭重新分區的重新授權就是最好的例子。我們現在擁有執行這些戰略和創造價值的內部能力，並且已經確定了許多這樣的機會。我們可能會在內部尋求重新授權或出售給其他人來尋求。盧斯克就是一個典型的例子。

During Mac's absence, the team is fully engaged and has hit the ground running. We look forward to executing the strategy as we move into 2022. I will now turn the call over to Maria.

在 Mac 缺席期間，團隊全神貫注並全力以赴。我們期待在進入 2022 年時執行該戰略。我現在將把電話轉給瑪麗亞。

Thank you, Steve. I'm happy to be here today with so many familiar names. As you can tell from Steve's comments, our leasing machine and operations teams are all performing extremely well. If 2021 was the year of growing occupancy, 2022 will continue to be the year of driving rental rates. It's safe to say that all industrial markets are seeing record low vacancies and, as a result, there is upward pricing pressure. Operating fundamentals include low unemployment, positive net absorption, limited new construction of our product type and robust user command -- demand.

謝謝你，史蒂夫。我很高興今天能和這麼多熟悉的名字一起來到這裡。從史蒂夫的評論中可以看出，我們的租賃機和運營團隊都表現得非常好。如果說 2021 年是入住率增長的一年，那麼 2022 年將繼續是推動租金上漲的一年。可以肯定地說，所有工業市場的空置率都創歷史新低，因此存在價格上漲壓力。運營基本麵包括低失業率、積極的淨吸收、我們產品類型的新建設有限和強勁的用戶命令——需求。

Now let's turn to the individual markets. In Seattle, our industrial assets average occupancy increased to 98.2% for the fourth quarter, a 260 basis point sequential expansion and cash rent growth of 11.5%. The Seattle industrial market, in general, had a record year with good job growth and great absorption. The story in California continues to be great despite regulatory constraint.

現在讓我們轉向個別市場。在西雅圖，第四季度我們的工業資產平均入住率增至 98.2%，環比增長 260 個基點，現金租金增長 11.5%。總的來說，西雅圖工業市場在就業增長良好和吸納量大的情況下創下了創紀錄的一年。儘管受到監管限制，加州的故事仍然精彩。

In California, our Same Park industrial assets, average occupancy increased to 97.3% for the fourth quarter, a 100 basis point sequential expansion. Cash rent growth for the industrial assets was 10.9%. The Northern California delivered outstanding metrics in Q4 and led us in leasing production with 452,000 square feet and retention of 78.5%. Southern California saw 85% retention on 242,000 square feet of deals executed.

在加利福尼亞州，我們的 Same Park 工業資產第四季度的平均入住率增至 97.3%，環比增長 100 個基點。工業資產的現金租金增長 10.9%。北加州在第四季度提供了出色的指標，並以 452,000 平方英尺和 78.5% 的保留率領先我們的租賃生產。南加州在 242,000 平方英尺的已執行交易中保留了 85%。

Fourth quarter Same Park average occupancy was 97.7%. With the economic engine moving forward in Texas, we have success in virtually all our metrics. Leasing production delivered 359,000 square feet and retention at 72%. Our Same Park industrial assets average occupancy increased to 96.6% for the fourth quarter, a 230 basis point sequential increase. Cash rent growth for the industrial assets was 14.9%. As Steve mentioned, our development adjacent to DFW Airport is 100% leased and occupied with rental rates that set a new high point for the market. The South Florida industrial market is benefiting from strong trade dynamics. From time to time, we may lose a customer due to uncertainty with the various trade issues, but we are able to re-tenant quickly and often through existing customer demand. Our industrial assets average occupancy increased to 98.6% for the fourth quarter, a 10 basis point sequential increase in cash rent growth for all assets was 16%.

第四季度 Same Park 的平均入住率為 97.7%。隨著德克薩斯州的經濟引擎向前發展，我們幾乎在所有指標上都取得了成功。租賃生產交付了 359,000 平方英尺，保留率為 72%。第四季度，我們的 Same Park 工業資產平均入住率增至 96.6%，環比增長 230 個基點。工業資產的現金租金增長 14.9%。正如史蒂夫提到的，我們毗鄰 DFW 機場的開發項目已 100% 出租並出租，租金率創下市場新高。南佛羅里達工業市場受益於強勁的貿易動態。有時，由於各種貿易問題的不確定性，我們可能會失去客戶，但我們能夠通過現有客戶需求快速且經常地重新租用。第四季度，我們的工業資產平均入住率增至 98.6%，所有資產的現金租金環比增長 10 個基點，增幅為 16%。

For the Washington Metro area, our Same Park industrial assets average occupancy increased to 98.5% for the fourth quarter, a 240 basis point sequential increase. As you know, the bulk of PSB's office portfolio is in this market, and it is here that we are battling our only headwinds. We had hoped at the beginning of the year that people would head back to the office in 2021. However, the COVID variants put that on hold for many office users.

對於華盛頓都會區，我們的 Same Park 工業資產平均入住率在第四季度增至 98.5%，環比增長 240 個基點。如您所知，PSB 的大部分寫字樓組合都在這個市場，而我們正是在這裡與我們唯一的逆風作鬥爭。我們在年初曾希望人們能在 2021 年回到辦公室。但是，COVID 變體讓許多辦公室用戶擱置了這一想法。

Despite this, I'm proud that the team was able to maintain 88% occupancy in an office market that is 80% occupied and had GAAP rent growth of 5.8% on 171,000 square feet of leasing with transaction costs of only $4 per square foot. This just proves once again that our small tenant spaces with generic office build-outs and finishes continue to outperform the market.

儘管如此，我感到自豪的是，該團隊能夠在 80% 的辦公市場中保持 88% 的入住率，並且在 171,000 平方英尺的租賃中 GAAP 租金增長 5.8%，交易成本僅為每平方英尺 4 美元。這再次證明，我們擁有通用辦公室擴建和裝修的小型租戶空間繼續跑贏市場。

I am optimistic as we look at 2022. For the remainder of the year, 71% of all expirations are in our industrial product. 21% is flex and only 8% is office. Our goal is to take advantage of the industrial tailwinds by maintaining high occupancy and pushing rental rates.

展望 2022 年，我很樂觀。在今年餘下的時間裡，我們的工業產品中有 71% 到期。 21% 是靈活的，只有 8% 是辦公室。我們的目標是通過保持高入住率和推高租金來利用工業順風。

I will now turn the call over to Adeel.

我現在將把電話轉給 Adeel。

Thank you, Maria. Beginning with our operating results. For the 3 months ended December 31, 2021, net income allocable to common stockholders was approximately $267.4 million or $9.66 per fully diluted share. This compares to $26.9 million or $0.98 per fully diluted share for the same quarter in 2020. For the 3 months ended December 31, 2021, core FFO was $63.5 million as compared to $57.9 million for the same quarter in 2020. On a per share basis, core FFO was $1.81 per fully diluted share, representing a 9% increase year-over-year.

謝謝你，瑪麗亞。從我們的經營業績開始。截至 2021 年 12 月 31 日止三個月，可分配給普通股股東的淨收入約為 2.674 億美元，即每股完全攤薄後的收益為 9.66 美元。相比之下，2020 年同期為 2690 萬美元或完全攤薄後每股 0.98 美元。截至 2021 年 12 月 31 日的三個月，核心 FFO 為 6350 萬美元，而 2020 年同期為 5790 萬美元。按每股計算，核心 FFO 為每股完全攤薄後的 1.81 美元，同比增長 9%。

Same Park NOI was $72.2 million for the 3 months ended December 31, 2021, which compares with $66.5 million for the same quarter in 2020, an increase of 8.6%. Our Same Park NOI was driven by a 7.3% increase in Same Park rental revenue, while Same Park operating expenses increased by 3.9%. On a cash basis, Same Park NOI increased by 6.5% year-over-year.

截至 2021 年 12 月 31 日的三個月，Same Park NOI 為 7220 萬美元，與 2020 年同期的 6650 萬美元相比增長 8.6%。我們的 Same Park NOI 受到 Same Park 租金收入增長 7.3% 的推動，而 Same Park 運營費用增長了 3.9%。按現金計算，Same Park NOI 同比增長 6.5%。

Funds available for distribution, or FAD, was $54.3 million for the 3 months ended December 31, bringing 2021 FAD to $210.7 million, representing a 10.8% increase from the prior year. In addition to the previously mentioned cash NOI growth, FAD continues to benefit from well-managed recurring capital expenditures, which for our Same Park portfolio registered at 11.5% of NOI.

截至 12 月 31 日的三個月，可用於分配的資金 (FAD) 為 5430 萬美元，使 2021 年 FAD 達到 2.107 億美元，比上年增長 10.8%。除了前面提到的現金 NOI 增長外，FAD 繼續受益於管理良好的經常性資本支出，我們的 Same Park 投資組合的資本支出佔 NOI 的 11.5%。

Turning now to our balance sheet and financing activities. We continue to believe that maintaining a low leverage balance sheet with ample liquidity and a diverse array of capital sources is a competitive advantage for PS Business Parks. In November, we redeemed all $190 million of Series W preferred shares. At the end of the fourth quarter, we had approximately $27 million of cash and $368 million available on our credit facility. We remain in a very strong liquidity position with a net debt plus preferred equity to EBITDA ratio of 2.6x. With regard to our dividend, on February 21, 2022, our Board declared an ordinary dividend of $1.05 per share to be paid in the first quarter of 2022 on March 31, 2022, to stockholders of record on March 16, 2022.

現在轉向我們的資產負債表和融資活動。我們仍然認為，保持低杠桿資產負債表、充足的流動性和多元化的資本來源是 PS 商業園的競爭優勢。 11 月，我們贖回了全部 1.9 億美元的 W 系列優先股。第四季度末，我們有大約 2700 萬美元的現金和 3.68 億美元的可用信貸額度。我們的流動性狀況仍然非常強勁，淨債務加優先股與 EBITDA 之比為 2.6 倍。關於我們的股息，我們的董事會於 2022 年 2 月 21 日宣布將在 2022 年第一季度於 2022 年 3 月 31 日向 2022 年 3 月 16 日登記在冊的股東支付每股 1.05 美元的普通股息。

This concludes our prepared remarks. And with that, we'll open the line for questions. Operator?

我們準備好的發言到此結束。有了這個，我們將打開問題熱線。操作員？

(Operator Instructions) Our first question comes from Anthony Paolone with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Anthony Paolone。

I was wondering if you can first potentially address the timeline with Mac and just any update on that front? And also in that same regard, I know you had some plans to consider a CIO seat, and whether that's on hold or any of those types of moves are still in process?

我想知道您是否可以首先解決 Mac 的時間線以及這方面的任何更新？同樣在這方面，我知道你有一些計劃考慮 CIO 席位，這是擱置還是任何此類舉措仍在進行中？

This is Steve. Well, first and foremost, our thoughts are with Mac and his family, and that's the most important element. Other than what we've already publicly disclosed, we have no additional updates at this time. And should that change, we will publicly release that status.

這是史蒂夫。嗯，首先，我們的想法是與 Mac 和他的家人在一起，這是最重要的因素。除了我們已經公開披露的內容外，我們目前沒有其他更新。如果這種情況發生變化，我們將公開發布該狀態。

The second part of your question, I think we'll leave that until Mac returns, he needs to hire his own team. So I think we'll put that on pause for a while. But it doesn't stop or slow down the work that we're doing.

你問題的第二部分，我想我們會在 Mac 回來之前保留它，他需要雇用自己的團隊。所以我想我們會暫停一段時間。但它不會停止或減慢我們正在做的工作。

Okay. And then second question, can you talk about just what the investment pipeline looks like, put any dollar amounts around it or the types of things you might be looking at in the near term?

好的。然後是第二個問題，你能談談投資管道是什麼樣子的嗎？在它周圍放上任何美元金額或者你在短期內可能會看到的東西類型？

There is a -- there's a lot of products out there of mix quality. We're underwriting a number of opportunities right now. How much of that we execute on remains to be seen, but we're going to be competitive, and there are things that I think we would be quite aggressive with.

有一個 - 那裡有很多混合質量的產品。我們現在正在承保許多機會。我們執行了多少還有待觀察，但我們將具有競爭力，而且我認為有些事情我們會非常積極。

Okay. And then just last question maybe for Maria. You talked about pushing rate in 2022 given where the occupancy level is. Can you give us any sense as to perhaps what mark-to-markets might look like this year in comparison to last year given the mix and just what's happened with the market?

好的。最後一個問題可能是針對 Maria 的。考慮到入住率，你談到了 2022 年的推動率。考慮到混合情況以及市場發生了什麼，您能否告訴我們今年與去年相比按市值計價可能是什麼樣子？

Yes. Tony, I think that on the West Coast -- because -- all of the markets are really good, whether it's Seattle, the Bay Area or the L.A. markets that we have. So we'd be looking at 15% to 20% for our industrial. Flex is a little more variable depending on the office build-out. But overall, I would hope we could get at least an average of 10%. And on office, right now on that, we're just looking to maintain occupancy and it's not so much about rent growth at all. But the good news is that we don't have really any big expirations coming up this year. One that we have is in Florida. It's about 100,000 square feet. There's intense activity. I think we've already pre-leased 1 or 2 of the spaces, and we're looking at -- for instance, on that one, we're looking at between 25% and 30% rent growth. And then we have 1 in Dallas expiring about 60,000 feet. And again, that one, we're looking at 27% rent growth. Those are both industrial deals, but that shows you the sort of overall rent growth we're looking at.

是的。托尼，我認為在西海岸——因為——所有的市場都非常好，無論是西雅圖、灣區還是我們擁有的洛杉磯市場。所以我們會為我們的工業尋找 15% 到 20%。根據辦公室的擴建情況，Flex 的變化更大一些。但總的來說，我希望我們至少能平均達到 10%。在辦公室，現在就此而言，我們只是想保持入住率，而根本與租金增長無關。但好消息是，今年我們真的沒有任何大的到期日。我們有一個在佛羅里達州。它大約有100,000平方英尺。有激烈的活動。我認為我們已經預租了 1 或 2 個空間，我們正在考慮——例如，在那個空間上，我們正在考慮 25% 到 30% 的租金增長。然後我們在達拉斯有 1 個在大約 60,000 英尺處到期。再一次，那個，我們正在尋找 27% 的租金增長。這些都是工業交易，但這向您展示了我們正在關注的整體租金增長。

Okay. And just to clarify, those spreads are cash numbers?

好的。澄清一下，這些點差是現金數字嗎？

Cash. Yes.

現金。是的。

And we'll take our next question from Craig Mailman with KeyBanc Capital.

我們將從 KeyBanc Capital 的 Craig Mailman 那裡回答下一個問題。

This is Ardie on for Craig. Just a quick one on sort of capital sources and uses. So it looks like you guys have a pro forma of the disposition in Texas. You guys are looking at some capital that you can redeploy here. I mean through the year, should we expect you guys to be net acquirers given how you guys feel about the acquisition pipeline today? And just any thoughts there?

這是克雷格的阿迪。只是關於資本來源和用途的快速介紹。所以看起來你們有德克薩斯州處置的形式。你們正在尋找一些可以在這裡重新部署的資本。我的意思是，在這一年裡，我們是否應該期望你們成為淨收購者，因為你們對今天的收購渠道有何看法？還有什麼想法嗎？

Ardie, this is Adeel. Thanks for the question. And I think the way -- best way to answer that question is that our goal, first and foremost, is to continue to fine-tune the portfolio in the way we have been doing over the last year or so. I think that's priority number one. And to Steve's point earlier, right, as we fine-tune the portfolio. And as we get any disposition proceeds, our first order of business is to get that money to exchange. So we can find sources to redeploy. So that's our laser focus. So we're not distracted from that perspective. But having said that, we're very disciplined in terms of our approach as to how we deploy that capital.

阿迪，這是阿黛爾。謝謝你的問題。我認為，回答這個問題的最佳方式是，我們的首要目標是繼續按照過去一年左右的方式調整投資組合。我認為這是第一要務。對於史蒂夫早些時候的觀點，正確的，因為我們微調了投資組合。當我們獲得任何處置收益時，我們的首要任務就是讓這筆錢進行交換。所以我們可以找到重新部署的資源。這就是我們的激光焦點。所以我們不會從那個角度分心。但話雖如此，就我們如何部署該資本的方法而言，我們非常有紀律。

And to Steve's point, there's quite a bit of stuff that we're looking at across the markets, right? The great thing is that we are operating in some of the best markets and that's great in terms of our ability to execute in different markets. And certainly, what we -- what you have seen us do in Dallas is just an example in terms of our capability.

就史蒂夫的觀點而言，我們在整個市場上都在關注很多東西，對吧？最棒的是，我們在一些最好的市場開展業務，這對我們在不同市場的執行能力而言非常重要。當然，我們 - 你在達拉斯看到我們所做的只是我們能力方面的一個例子。

And last part of this question, obviously, that's just on the disposition strategy and what we do with the proceeds, right? Our balance sheet is just ready and equipped to go any which way we want, right? We have the best balance sheet in class. So the team is laser-focused on that perspective. And to Steve's point earlier, right, I think we've got a great team here and just looking at every single thing that we need to do just to make sure that we continue to be accretive for the shareholders.

這個問題的最後一部分，顯然，這只是關於處置策略以及我們如何處理收益，對吧？我們的資產負債表已經準備就緒，可以隨心所欲，對吧？我們擁有一流的資產負債表。所以團隊非常專注於這個觀點。對於史蒂夫早些時候的觀點，對，我認為我們這裡有一支很棒的團隊，他們正在研究我們需要做的每一件事，以確保我們繼續為股東增值。

Got it. And one more quick one, if I could. How should we think about the 2 preferred shares that are coming callable this year, the Series X and the Series Y?

知道了。如果可以的話，再快一點。我們應該如何看待今年可贖回的兩隻優先股，即 X 系列和 Y 系列？

Yes. Great question, and I think we'll answer that as we get closer, right? So it all starts with growing the base from a company perspective, right? That's our first and foremost priority. However, having said that, if for some reason, we don't find the quality that we're seeking or the returns that we're looking at, right, if they don't pencil in really well, that's certainly an opportunity set for us, right? And we've seen us execute on that side in the past, but we can't really guide to that just yet, the years ahead of us. But as we get closer, you'll certainly have a lot more messaging from our perspective in terms of the quarter-by-quarter breakdown and then we'll guide you a little bit further. But certainly, 2 are certainly at our table, but we'll see. The first and foremost priority is to just accretively grow the company.

是的。很好的問題，我想我們會在接近時回答這個問題，對嗎？所以這一切都始於從公司的角度擴大基礎，對嗎？這是我們的首要任務。然而，話雖如此，如果由於某種原因，我們沒有找到我們正在尋求的質量或我們正在尋找的回報，對，如果他們沒有很好地記錄下來，那肯定是一個機會集對我們來說，對吧？我們已經看到我們過去在這方面執行過，但我們還不能真正指導這一點，在我們未來的歲月裡。但隨著我們越來越接近，從我們的角度來看，你肯定會收到更多關於逐季度細分的信息，然後我們會進一步指導你。但可以肯定的是，有 2 個肯定在我們這邊，但我們拭目以待。首要任務是讓公司不斷發展壯大。

We'll take our next question from Manny Korchman with Citi.

我們將從花旗的 Manny Korchman 那裡回答下一個問題。

Stephen, maybe this is one for you, but I'm just trying to reconcile a couple of comments you've made on holding to hire a CIO as leaving that to Mac's decision, but then sounding like you might be aggressive on some (inaudible) acquisitions. So help us reconcile what you guys are willing to do without Mac sort of actively in the seat? Or is that just stuff that's already underway? Or how are you thinking about what needs to be a more permanent decision versus a decision made with this interim team in place?

斯蒂芬，也許這是給你的，但我只是想調和你發表的關於堅持聘請首席信息官的一些評論，將其留給 Mac 的決定，但聽起來你可能對某些（聽不清） ）收購。因此，請幫助我們調和你們在沒有 Mac 的情況下願意做什麼？或者這只是已經在進行中的事情？或者您如何考慮什麼需要更永久的決定與這個臨時團隊做出的決定？

Well, we -- the management team has some depth. We have a Senior Vice President of Real Estate. He's actively in the market and that is sourcing all the deals. So the underwriting is done by the existing team. The Chief Investment Officer would obviously be more strategic. But it doesn't affect what's going on right now. Things we've been looking at for maybe 3 months. So it doesn't change how we're viewing the business. Maria, Adeel and myself, we're very involved. And so I don't think it affects anything. I just think it's important for Mac to hire his own Chief Investment Officer when the time comes, but it doesn't impact how we're going about our business on a daily basis.

好吧，我們 - 管理團隊有一定的深度。我們有一位房地產高級副總裁。他在市場上很活躍，正在尋找所有的交易。所以承銷是由現有團隊完成的。首席投資官顯然更具戰略性。但這並不影響現在發生的事情。我們可能已經研究了 3 個月的事情。所以它不會改變我們對業務的看法。 Maria、Adeel 和我自己，我們都非常投入。所以我認為它不會影響任何事情。我只是認為 Mac 在時機成熟時聘請自己的首席投資官很重要，但這不會影響我們每天開展業務的方式。

And then Maria, one for you. Just as you think about the relationship between occupancy and rental rate growth and retention and all those things. Are you actively changing the way that you structure any of your leases, be it shorter or longer or depending on size, longer or shorter or anything like that?

然後是瑪麗亞，一個給你。就像您考慮入住率與租金增長率和保留率以及所有這些事情之間的關係一樣。您是否正在積極改變您構建任何租約的方式，無論是更短還是更長，或者取決於大小，更長或更短或類似的東西？

Yes, that's a good question, Manny, and it's nice talking with you, again, too. But we -- our average deals are 3.5 years. And on the larger spaces, our preference is to get 5-plus years. And you can do that with more sophisticated tenants as seen by the deals we executed last year with Amazon, and we've got some 10-year deals on those. Our little guys are bread and butter. It's hard to get them beyond 3 years just because when you have a small business owner, they don't have 5- and 10-year projections usually. So -- but we're happy with that. some of these shorter terms allow us to be able, as the markets have been rising so well over the last 7 years to have 2 and 3 bites at the apple of increasing the rental rate growth on even those little guys. But when you have the little guys, you're not getting 20% and 30% rent increases if you're renewing them every 2 years. Does that makes sense?

是的，這是一個很好的問題，曼尼，很高興再次與你交談。但我們——我們的平均交易期限為 3.5 年。在更大的空間，我們的偏好是獲得 5 年以上。從我們去年與亞馬遜執行的交易中可以看出，你可以與更成熟的租戶一起做到這一點，我們已經就這些達成了一些 10 年的交易。我們的小傢伙是麵包和黃油。很難讓他們超過 3 年，因為當你有一個小企業主時，他們通常沒有 5 年和 10 年的預測。所以 - 但我們對此感到滿意。其中一些較短的期限使我們能夠做到，因為市場在過去 7 年裡一直上漲得如此之快，以至於即使是那些小傢伙也有 2 到 3 口提高租金增長的蘋果。但是當你有小傢伙時，如果你每 2 年更新一次，你就不會得到 20% 和 30% 的租金增長。這有意義嗎？

No, it does. So it sounds like not much has changed versus your business 2 or 3 or 5 or 10 years ago, I was just wondering if you were actively thinking about changing things, but the answer -- it sounds like the answer is no.

不，確實如此。所以聽起來與 2 年、3 年、5 年或 10 年前你的業務相比並沒有太大變化，我只是想知道你是否在積極考慮改變事情，但答案——聽起來答案是否定的。

No. You can't -- on the little guys, if I wanted to say if I would love to get 5- and 10-year deals with our automatic increases, that would be great, but you just can't do that.

不，你不能——在小傢伙身上，如果我想說我是否願意通過我們的自動增長獲得 5 年和 10 年的交易，那會很好，但你不能那樣做。

Manny, I'll just add one antidote to what Maria is saying is that, and I think this just goes to Maria's comment earlier on the rent growth. I think that's purely the focus here, right? And when we look at 2022, and I know we don't provide guidance here, right, but when we look at our internal numbers here, we're pushing more -- try to put lower retention because we want to push the rents. That's what how we are kind of looking at our business. So that really aligns well with what Maria was saying. And obviously, this is not news to you guys on the call because you've seen that from all the industrial peers, right, so that's the key focus, right? So if that retention rate shifts a little bit lower, it's all by design, right? Because, again, to her point, right, we're trying to get more bites at the apple, and we want to make sure that if there's an opportunity set there, right, we get new tenants who are willing to pay higher, right? And because the demand just certainly is there. So hopefully, you'll see a little bit of that flow through the numbers as well as we go into the year.

曼尼，我只想為瑪麗亞所說的添加一個解毒劑，我認為這只是瑪麗亞早些時候對租金增長的評論。我認為這純粹是這裡的重點，對吧？當我們看 2022 年時，我知道我們在這裡沒有提供指導，對吧，但是當我們在這裡查看我們的內部數據時，我們正在推動更多——嘗試降低保留率，因為我們想推高租金。這就是我們看待我們業務的方式。所以這與 Maria 所說的非常吻合。顯然，這對你們這些人來說不是新聞，因為你們已經從所有工業同行那裡看到了，對，所以這是重點，對吧？因此，如果保留率稍微降低一點，那都是設計使然，對嗎？因為，再一次，就她的觀點而言，對吧，我們正試圖在蘋果上多咬一口，我們想確保如果那裡有機會，對吧，我們會得到願意支付更高價格的新租戶，對吧？而且因為需求肯定存在。因此，希望您能在我們進入這一年時看到一些數字的流動。

There are no further questions at this time. I will turn the call back over to Steve Wilson for any closing remarks.

目前沒有其他問題。我會將電話轉回給史蒂夫·威爾遜，聽取任何結束語。

Well, thank you, everyone, for your time this morning, and we look forward to talk to you again in a couple of months. Thank you. Have a great day.

嗯，謝謝大家今天早上的時間，我們期待在幾個月後再次與您交談。謝謝。祝你有美好的一天。

Thank you. And this does conclude today's conference call. Please disconnect your line at this time, and have a wonderful day.

謝謝。這確實結束了今天的電話會議。請此時斷開您的線路，祝您有美好的一天。