Retail Opportunity Investments Corp (ROIC) 2023 Q4 法說會逐字稿

Welcome to Retail Opportunity Investments’ 2023 Fourth Quarter and Year End Conference Call. Participants are currently in a listen-only mode. Following the company's prepared remarks, the call will be opened up for questions.

歡迎參加零售機會投資 2023 年第四季和年終電話會議。參與者目前處於僅監聽模式。在公司準備好發言後，將開始電話提問。

Now, I'd like to introduce Lauren Silveira, the company's Chief Accounting Officer. Please begin.

現在，我想介紹一下公司的首席會計長Lauren Silveira。請開始。

Thank you. Before we begin, please note that certain matters which we will discuss on today's call are forward-looking statements within the meaning of federal securities laws. These forward-looking statements involve risks and other factors which can cause actual results to differ significantly from future results that are expressed or implied by such forward-looking statements. Participants should refer to the company's filings with the SEC, including our most recent annual report on Form 10-K, to learn more about these risks and other factors.

謝謝。在開始之前，請注意，我們將在今天的電話會議上討論的某些事項是聯邦證券法含義內的前瞻性陳述。這些前瞻性陳述涉及風險和其他因素，可能導致實際結果與此類前瞻性陳述明示或暗示的未來結果有顯著差異。參與者應參閱公司向 SEC 提交的文件，包括我們最新的 10-K 表格年度報告，以了解有關這些風險和其他因素的更多資​​訊。

In addition, we will be discussing certain non-GAAP financial results on today's call. Reconciliation of these non-GAAP financial results to GAAP results can be found in the company's quarterly supplemental, which is posted on our website.

此外，我們將在今天的電話會議上討論某些非公認會計準則財務表現。這些非 GAAP 財務業績與 GAAP 業績的對帳可以在我們網站上發布的公司季度補充資料中找到。

Now, I'll turn the call over to Stuart Tanz, the company's Chief Executive Officer. Stuart?

現在，我將把電話轉給公司執行長 Stuart Tanz。史都華？

Thank you, Lauren, and good day, everyone. Here with Lauren and me today is Michael Haines, our Chief Financial Officer; and Rich Schoebel, our Chief Operating Officer.

謝謝你，勞倫，大家好。今天與勞倫和我在一起的是我們的財務長 Michael Haines；和我們的營運長 Rich Schoebel。

Notwithstanding 2023, having been a year of extraordinary challenges for certain commercial real estate asset classes and certain CBD markets across the country, in distinct contrast, the long-term core drivers of the grocery anchorage sector remain fundamentally sound, especially as it relates to our portfolio and our highly protected, sought-after West Coast markets. Capitalizing on the strong fundamentals, we achieved a number of new leasing records and milestones for the company. For the 14th consecutive year, we leased essentially double the amount of space that was originally scheduled to mature. Specifically, in 2023, we leased over 1.7 million square feet, achieving a new record for the company in terms of overall leasing activity. Additionally, we again achieved re-leasing rent growth for a record 11th consecutive year, including 11 years in a row of achieving double-digit growth on same-space new leases.

儘管 2023 年是全國某些商業房地產資產類別和某些 CBD 市場面臨巨大挑戰的一年，但形成鮮明對比的是，雜貨錨地行業的長期核心驅動力仍然基本健全，特別是因為它與我們的投資組合以及我們受到高度保護、廣受歡迎的西海岸市場。憑藉強勁的基本面，我們為公司創造了多項新的租賃記錄和里程碑。我們連續第 14 年租賃的空間數量基本上是原計劃到期數量的兩倍。具體來說，2023年，我們租賃了超過170萬平方英尺，創下了公司整體租賃活動的新紀錄。此外，我們再次實現連續 11 年創紀錄的再租賃租金成長，其中連續 11 年實現同空間新租賃的兩位數成長。

Importantly, we worked at strategically renewing early a number of key valued anchor tenants, including long-standing grocer tenants. By doing so, we enhanced the long-term strength and stability of ROIC's core anchor income stream well into the future. We also continued to implement our long-standing strategy of proactively enhancing the tenant mix across our portfolio through seeking out opportunities to recapture early and re-lease select spaces. Going forward, this will not only serve to enhance the strength of our tenant base and appeal of our properties, it will also serve to grow our income stream, having achieved higher re-leasing rents.

重要的是，我們致力於儘早策略性地更新一些關鍵價值的主力租戶，包括長期的雜貨店租戶。透過這樣做，我們增強了ROIC核心錨定收入流未來的長期實力和穩定性。我們也持續實施我們的長期策略，透過尋找提前收回和重新租賃選定空間的機會，積極增強我們投資組合的租戶組合。展望未來，這不僅將有助於增強我們的租戶基礎實力和物業的吸引力，還將有助於增加我們的收入來源，實現更高的轉租租金。

In terms of acquisitions, in light of the considerable uncertainty in commercial real estate during 2023, the West Coast acquisition market sat essentially idle through much of the year. While it was sitting idle, we continued to maintain an active dialogue with our long-standing off-market sources in order to be in a strong position to capitalize on unique opportunities when the market began to pick up again. To that end, during the closing months of 2023, certain private owners started to become more active in seeking to transact.

在收購方面，鑑於2023年商業房地產存在相當大的不確定性，西海岸收購市場在這一年的大部分時間基本上處於閒置狀態。在閒置期間，我們繼續與長期的場外資源保持積極對話，以便在市場再次開始回升時處於有利地位，抓住獨特的機會。為此，在 2023 年最後幾個月，某些私人業主開始更積極地尋求交易。

Capitalizing on this, in December, we acquired an excellent neighborhood grocery-anchored shopping center that we had our eye on for some time. The property is located in the Los Angeles market, in a densely populated, mature, diverse community. The center is anchored by a well-established supermarket that is a long-time national tenant of ours. The seller was a private owner that was in need of a closing before year end.

利用這一點，我們在 12 月收購了一個優秀的社區雜貨店購物中心，我們已經關注了一段時間了。該物業位於洛杉磯市場，位於人口密集、成熟、多元化的社區。該中心以一家知名超市為基地，該超市是我們的長期全國租戶。賣方是一位私人業主，需要在年底前完成交割。

Given our knowledge of the market, together with our knowledge of the property and tenant roster, we were in a strong position to facilitate an efficient closing and in return, achieved attractive pricing, including a cap rate in the high 6s for what is irreplaceable, sought-after real estate. Looking ahead, based on what we're currently seeing, market activity for acquisitions could resume on the West Coast in 2024, potentially in earnest.

鑑於我們對市場的了解，以及我們對房產和租戶名冊的了解，我們處於有利地位，可以促進高效的成交，並獲得有吸引力的定價，包括為不可替代的東西提供高達 6 的上限利率，備受追捧的房地產。展望未來，根據我們目前的情況，西海岸的收購市場活動可能會在 2024 年恢復，並且可能會認真恢復。

Turning to our balance sheet. During 2023, we worked diligently to enhance our long-term financial strength and profile through implementing a number of strategic capital market initiatives, including re-entering the public bond market, balancing our debt maturity schedule while also reducing our floating rate debt and extending our credit line maturity, as well as raising a bit of equity in connection with the acquisition.

轉向我們的資產負債表。2023年，我們透過實施多項策略資本市場舉措，努力增強我們的長期財務實力和形象，包括重新進入公共債券市場、平衡我們的債務到期時間表，同時減少我們的浮動利率債務和延長我們的債務期限。信貸額度到期，以及透過收購籌集一些股本。

Now, I'll turn the call over to Michael Haines, our CFO, to take you through the details of our balance sheet initiatives, as well as our financial results for 2023, and initial guidance for 2024. Mike?

現在，我將把電話轉給我們的財務長 Michael Haines，他將向您詳細介紹我們的資產負債表計劃、2023 年的財務業績以及 2024 年的初步指導。麥克風？

Thanks, Stuart. Starting with our financial results. For the year ended of 2023, total revenues reached a new record high of $328 million. Offsetting record revenues, interest expense during 2023 increased notably as a result of higher interest rates. In terms of net income for the year 2023, GAAP net income attributable to common shareholders totaled $35 million or $0.27 per diluted share. With respect to funds from operations, FFO for the year 2023 totaled $141 million, equating to $1.6 per share. Net operating income for 2023 on the same-center comparative cash basis increased by 3.7% over 2022.

謝謝，斯圖爾特。從我們的財務表現開始。截至 2023 年，總營收達到 3.28 億美元，創下歷史新高。由於利率上升，2023 年利息支出顯著增加，抵消了創紀錄的收入。就 2023 年淨利而言，普通股股東應佔 GAAP 淨利潤總計 3,500 萬美元，即稀釋後每股收益 0.27 美元。就營運資金而言，2023 年的 FFO 總額為 1.41 億美元，相當於每股 1.6 美元。2023年以同中心比較現金基礎計算的營業淨收入較2022年成長3.7%。

According to our financing activities, during 2023, we raised, in total, approximately $363 million of capital, $350 million of which were raised in September through a public offering of unsecured senior notes. As Stuart noted, it was the first time raising capital in the public bond market in nearly a decade. Accordingly, we made a concerted effort to fully engage with the market, having discussions with a broad and diverse mix of investors, a number of which were new to the company.

根據我們的融資活動，2023 年期間，我們總共籌集了約 3.63 億美元的資本，其中 3.5 億美元是在 9 月透過公開發行無擔保高級票據籌集的。正如史都華所指出的那樣，這是近十年來首次在公共債券市場籌集資金。因此，我們齊心協力充分參與市場，與廣泛而多樣化的投資者進行討論，其中許多投資者是公司的新投資者。

We utilized the proceeds from the offering to retire the $250 million of unsecured senior notes that matured in December. Additionally, we retired early $100 million of floating rate debt. Also, in the midst of the Fed's rate tightening, we swapped $150 million in floating rate debt fixed rate. As such, at year end, just 9% of our total debt outstanding was effectively floating rate, down significantly from a year ago, when our floating rate debt was 28% of our total debt outstanding.

我們利用此次發行的收益償還了 12 月到期的 2.5 億美元無擔保優先票據。此外，我們提前還清了 1 億美元的浮動利率債務。此外，在聯準會升息期間，我們將 1.5 億美元的浮動利率債務轉換為固定利率。因此，到年底，我們的未償債務總額中只有 9% 是有效的浮動利率，比一年前大幅下降，當時我們的浮動利率債務佔未償債務總額的 28%。

Along with proactively lowering our floating rate debt, earlier in the year, in light of the regional banking turmoil, we proactively extended the maturity of our credit line, sending in the maturity date up to 2027, with the ability to extend it for an additional year to 2028. We also have the ability to double the capacity of the credit line from its current capacity of $600 million up to $1.2 billion.

在積極降低浮動利率債務的同時，今年早些時候，鑑於地區銀行業的動盪，我們主動延長了信貸額度的期限，將到期日延長至 2027 年，並有能力再延長一次到 2028 年。我們也有能力將信貸額度的容量從目前的 6 億美元增加一倍至 12 億美元。

Additionally, in the context of what happened in the regional banking sector this past year, it's important to note that we just had two mortgages that together only total about $60 million. Looking ahead, come April, when one of the two loans mature, we were down to only one mortgage remaining.

此外，考慮到去年地區銀行業發生的情況，值得注意的是，我們只有兩筆抵押貸款，總額僅約 6,000 萬美元。展望未來，到了四月份，當兩筆貸款中的一筆到期時，我們只剩下一筆抵押貸款了。

In addition to lowering our floating rate and secured debt, during 2023, we continued to work at enhancing the company's financial ratios, including the company's net debt ratio. We ended the year with a net debt ratio of 6.2 times for the fourth quarter, which is the lowest that our net debt ratio has been, dating back to 2014.

除了降低浮動利率和擔保債務外，2023年我們也持續致力於提高公司的財務比率，包括公司的淨負債比率。截至年底，我們第四季的淨負債比率為 6.2 倍，這是自 2014 年以來我們淨負債比率的最低水準。

Looking ahead, our debt maturity schedule is well-laddered over the next five years, with approximately $300 million maturing each year on average. Having now re-established ROIC in the public bond market, our objective is to be a consistent annual issuer going forward.

展望未來，我們的債務到期時間表在未來五年內安排得井井有條，平均每年到期約 3 億美元。現在，我們在公共債券市場上重新建立了 ROIC，我們的目標是成為未來穩定的年度發行人。

Looking at 2024, in addition to refinancing the senior notes that mature at the end of the year, we may also look to refinance our term loan and credit line borrowings of long-term fixed rate bonds, depending upon market conditions as the year progresses. With respect to equity capital, in light of the acquisition that Stuart discussed, in December, we issued common stock through our ATM, raising approximately $13 million.

展望2024年，除了對年底到期的優先票據進行再融資外，我們還可能考慮對長期固定利率債券的定期貸款和信用額度借款進行再融資，具體取決於當年的市場狀況。關於股本，根據史都華討論的收購，我們在 12 月透過 ATM 發行了普通股，籌集了約 1,300 萬美元。

In terms of guidance for 2024, we currently expect our core portfolio NOI will continue to grow, driven by a combination of contractual rent increases, together with expected re-leasing rent growth. Additionally, as Stuart touched on, we are anticipating that the acquisition market will become active and favorable again. Accordingly, we currently expect to acquire between $100 million to as much as $300 million of shopping centers, net of dispositions. The fund acquisitions our guidance assume that we will issue equity in step of the acquisition activity as we move through the year, with the goal of keeping our financial ratios intact as we grow our portfolio.

就 2024 年的指導而言，我們目前預計，在合約租金上漲以及預期轉租租金成長的共同推動下，我們的核心投資組合 NOI 將繼續成長。此外，正如史都華所說，我們預計收購市場將再次變得活躍和有利。因此，我們目前預計收購價值 1 億至 3 億美元的購物中心（扣除處分後）。我們的基金收購指導假設我們將在全年的收購活動中發行股權，目標是在我們擴大投資組合的同時保持我們的財務比率不變。

Moderating our expected external internal growth will be interest costs. Based on the bonds that we issued in 2023, together with our projected acquisition and refinancing activity, we currently expect that the company's interest expense will be in the $78 million to $80 million range for 2024.

利息成本將抑制我們預期的外部內部成長。根據我們在 2023 年發行的債券，加上我們預期的收購和再融資活動，我們目前預計該公司 2024 年的利息支出將在 7,800 萬美元至 8,000 萬美元之間。

Additionally, in terms of bad debt, our guidance assumes a range of $3 million to $5 million, although our current expectation is that would be more towards the lower end, based on the overall strength of our tenant based today. Taking into account all of these factors and other various assumptions, we have set our initial FFO guidance range for 2024 at $1.03 to $1.09 per diluted share.

此外，就壞帳而言，我們的指導假設範圍為 300 萬美元至 500 萬美元，儘管我們目前的預期是，根據我們目前租戶的整體實力，該數字會更接近低端。考慮到所有這些因素和其他各種假設，我們將 2024 年的初始 FFO 指導範圍設定為稀釋後每股 1.03 美元至 1.09 美元。

Now, I'll turn the call over to Rich Schoebel, our COO. Rich?

現在，我將把電話轉給我們的營運長 Rich Schoebel。富有的？

Thanks, Mike. As Stuart highlighted, 2023 proved to be one of our best years in terms of leasing. Demand for space across our portfolio continues to be consistently strong, as a diverse mix of long-standing tenants together with new concepts and businesses seeking to expand to the West Coast, continue to vie for space. These diverse businesses are predominantly destination-type tenants in the wellness, self-care, restaurant, service, and entertainment segments. Most important from our perspective is their keen interest in leasing space at select shopping centers that are well-located in diverse communities, and have an established grocer as the core daily draw, which is exactly what our portfolio offers.

謝謝，麥克。正如 Stuart 所強調的那樣，2023 年被證明是我們租賃方面最好的年份之一。我們的投資組合對空間的需求持續強勁，因為長期租戶的多樣化組合以及尋求擴展到西海岸的新概念和企業繼續爭奪空間。這些多元化的企業主要是健康、自助、餐廳、服務和娛樂領域的目的地類型租戶。從我們的角度來看，最重要的是他們對位於不同社區的精選購物中心的租賃空間有著濃厚的興趣，並且擁有一家成熟的雜貨店作為核心日常吸引力，這正是我們的投資組合所提供的。

Capitalizing on the demand, as Stuart highlighted, during 2023, we achieved a new record for the company, leasing over 1.7 million square feet in total. The bulk of our activity centered around renewing long-standing tenants. Specifically, we renewed approximately 1.3 million square feet during 2023, and over half of that involved renewing valued anchor tenants, including long-standing grocers, with a number of tenants coming to us early to renew, some by as much as over a year in advance of their lease maturities.

正如史都華所強調的那樣，我們利用需求，在 2023 年為該公司創造了新紀錄，租賃面積總計超過 170 萬平方英尺。我們的大部分活動都集中在更新長期租戶。具體而言，我們在2023 年續約了約130 萬平方英尺，其中一半以上涉及續約重要的主力租戶，包括長期經營的雜貨店，許多租戶提前向我們續約，有些租戶在2023 年就提前一年多了。提前租賃到期。

In terms of new leasing activity, given the lack of available space across our portfolio and the modest amount of space that was scheduled to mature during 2023, we made a concerted effort to proactively recapture select spaces, focusing on sought-after anchor and pad spaces: spaces that are well-suited for the type of businesses that are leading to demand. In total, we successfully executed upwards of 400,000 square feet of new leases, a good portion of which were with tenants new to our portfolio. In step with our renewal and new leasing activity, we again posted another solid year in terms of re-leasing rent growth, including a 7% increase on renewals and a 22% increase on same-space new leases.

在新的租賃活動方面，鑑於我們的投資組合中缺乏可用空間，並且計劃在 2023 年成熟的空間數量有限，我們齊心協力主動重新奪回選定的空間，重點關注搶手的錨定和墊塊空間：非常適合需求旺盛的企業類型的空間。總的來說，我們成功執行了超過 40 萬平方英尺的新租約，其中很大一部分是與我們投資組合中的新租戶簽訂的。與我們的續租和新租賃活動保持一致，我們在轉租租金增長方面再次實現了強勁的一年，其中續租租金增長了 7%，同空間新租約增長了 22%。

With respect to Rite Aid, as we discussed on our last call back in October, out of the 15 leases we had with Rite Aid across our portfolio, three of the stores closed in the fourth quarter, which is reflected in our portfolio lease rate, which was 97.7% at year end. We already have much of the space spoken for with new synergistic tenants that we are excited about, and we expect to achieve a notable increase in the average base rent. In terms of the remaining 12 leases with Rite Aid, all of the stores continue to perform well. And Rite Aid has indicated that they intend to keep operating the stores and plan to implement new merchandising and operational strategies aimed at enhancing their performance going forward.

至於Rite Aid，正如我們在10 月的最後一次電話回訪中所討論的那樣，在我們的投資組合中與Rite Aid 簽訂的15 項租賃中，其中3 家商店在第四季度關閉，這反映在我們在的投資組合租賃率中，截至年底，該比率為 97.7%。我們已經擁有了許多與新的協同租戶合作的空間，我們對此感到興奮，我們預計平均基本租金將顯著增加。就與 Rite Aid 的其餘 12 個租賃而言，所有商店均繼續表現良好。Rite Aid 表示，他們打算繼續經營這些商店，並計劃實施新的銷售和營運策略，以提高未來的業績。

As 2024 is getting underway, demand for space continues to be strong across our portfolio, such that we expect to have another solid year. In terms of occupancy, we expect to maintain our overall portfolio lease rate in the 97% to 98% range as we move through the year.

隨著 2024 年即將到來，我們的投資組合對空間的需求持續強勁，因此我們預計將迎來另一個穩健的一年。就入住率而言，我們預計全年整體組合租賃率將維持在 97% 至 98% 的範圍內。

In terms of lease rollover, specifically anchor lease maturities, at the start of 2024, we had seven anchor leases scheduled to mature during the year, totaling 281,000 square feet. Three of the seven have already renewed their lease, and we currently expect another two will renew as well. As to the remaining two anchor leases scheduled to mature, one is with Rite Aid, which is 1 of the 12 stores that they intend to keep operating. We're currently in the process of amending their lease to extend it for another five years. With respect to the other anchor lease, we are in the process of re-leasing the space, and are currently in discussion with several national destination entertainment business that will be a terrific added draw to our property. Additionally, we expect to achieve a substantial increase in base rent over the prior tenant's rent.

就租賃展期而言，特別是主力租賃到期日，截至 2024 年初，我們有 7 個主力租賃計畫於年內到期，總面積為 281,000 平方英尺。七家中的三家已經續簽了租約，我們目前預計另外兩家也將續約。至於剩餘的兩份即將到期的主力租約，其中一份是與 Rite Aid 簽訂的，這是他們打算繼續經營的 12 家商店之一。我們目前正在修改他們的租約，並將其再延長五年。至於其他主力租賃，我們正在重新租賃該空間，目前正在與幾家全國性目的地娛樂公司進行討論，這將為我們的財產帶來巨大的吸引力。此外，我們預計基本租金將比先前租戶的租金大幅增加。

Looking out further at 2025, we currently have 22 anchor leases scheduled to mature. Based on our early proactive discussions with the tenants, we currently expect that 21 of the 22 anchors will renew, the bulk of which we expect will renew early as we move through 2024. The remaining anchor lease is 1 of the 12 leases with Rite Aid that we are currently in the process of extending the lease term.

進一步展望 2025 年，我們目前有 22 個主力租賃計畫到期。根據我們與租戶的早期積極討論，我們目前預計 22 個主播中的 21 個將續約，其中大部分將在 2024 年提前續約。剩餘的主力租約是與 Rite Aid 簽訂的 12 份租約中的 1 份，我們目前正在延長租約。

Lastly, in terms of non-anchor space maturing in 2024, at the start of the year, we had 484,000 square feet of shop space scheduled to mature. Similar to our anchor re-leasing activity, we are already hard at work and having good success at renewing and re-leasing the space. Additionally, we are also proactively pursuing recapture opportunities, and expect to have another productive year, as we did in 2023.

最後，就 2024 年成熟的非主力空間而言，年初時，我們計劃成熟的店鋪空間為 484,000 平方英尺。與我們的主力轉租活動類似，我們已經在努力工作，並在更新和轉租空間方面取得了良好的成功。此外，我們也積極尋求重新奪回機會，並期望像 2023 年那樣又一個富有成果的一年。

Now, I'll turn the call back over to Stuart.

現在，我將把電話轉回史都華。

Thanks, Rich. Our ability to post another strong year of leasing underscores the resilience and competitive strength of our grocery-anchored portfolio, and the intrinsic value of our operating platform's singular West Coast focus.

謝謝，里奇。我們有能力再創強勁的一年租賃業績，凸顯了我們以雜貨為主的投資組合的彈性和競爭實力，以及我們營運平台單一的西海岸重點的內在價值。

To echo Rich, looking ahead, we expect to have another strong and productive year in 2024. In terms of same-center net operating income, we fully expect to continue growing our NOI in 2024. However, on a cash basis, the growth rate for this year will be moderated as a result of Rite Aid stores that closed in the fourth quarter and the anchor lease that Rich mentioned.

與 Rich 一樣，展望未來，我們預計 2024 年將是另一個強勁且富有成效的一年。就同​​中心淨營業收入而言，我們完全預期 2024 年 NOI 將繼續成長。然而，以現金計算，由於第四季度 Rite Aid 商店關閉以及 Rich 提到的錨定租賃，今年的成長率將放緩。

While we are already close to having new tenants lined up for the space is at significantly higher rents on average, there will be downtime as we get the new tenants in place, which is reflected in our same-center NOI guidance growth rate for 2024. Once the new tenants are in place, together with what we expect to be another strong year of leasing in 2024, looking out further at 2025, we currently expect that same-center NOI growth will be in line with our historical growth rate in the 3% to 4% range, if not better.

雖然我們已經接近迎來新租戶，因為該空間的平均租金要高得多，但在新租戶就位時將會出現停工期，這反映在我們 2024 年同中心 NOI 指導增長率中。一旦新租戶到位，加上我們預計 2024 年將是租賃的另一個強勁年份，進一步展望 2025 年，我們目前預計同中心 NOI 增長將與我們 3 年的歷史增長率一致。% 到4% 的範圍，如果不是更好的話。

In terms of acquisitions, as 2024 is getting underway, we currently have close to $100 million of off-market transactions in our pipeline, all of which is truly irreplaceable real estate in the heart of densely populated, sought-after communities. While the transactions are not yet finalized, we currently expect that the potential pricing on a blended basis will be comparable to our fourth-quarter acquisition. Safe to say, we are excited about these opportunities and look forward to growing our portfolio in 2024, and continuing to build long-term value.

在收購方面，隨著 2024 年的到來，我們目前正在進行近 1 億美元的場外交易，所有這些都是位於人口稠密、搶手的社區中心的真正不可替代的房地產。雖然交易尚未最終確定，但我們目前預計混合基礎上的潛在定價將與我們第四季的收購相當。可以肯定地說，我們對這些機會感到興奮，並期待在 2024 年擴大我們的投資組合，並繼續創造長期價值。

Now, we will open up the call for your questions. Operator?

現在，我們將開放電話詢問您的問題。操作員？

(Operator Instructions) Jeffrey Spector, Bank of America Securities.

（操作員指示）Jeffrey Spector，美國銀行證券公司。

This is Lizzy, on for Jeff, actually. Lizzy Doykan. So I guess just starting with -- going back to the rationale around issuing equity in the quarter and then putting out guidance for the year, could we just maybe get some more color around expectations of cost and why that range is a bit wider? Presumably, it looks like that would be dilutive, depending on your view of NAV. But just wanted to get some more color around the plans to issue equity.

實際上，這是莉茲，代表傑夫。麗茲·多伊坎。所以我想先回到本季發行股票的基本原理，然後提出今年的指導，我們是否可以對成本預期有更多的了解，以及為什麼這個範圍有點寬？據推測，這看起來會被稀釋，具體取決於您對資產淨值的看法。但只是想對發行股票的計劃有更多的了解。

Sure. Well, look, in terms of the fourth quarter, we issued the stock specifically to finance the acquisition on a balance sheet-neutral basis and to maintain our financial ratios. Based on the cash cap rate and the FFO yield on the acquisition, the transaction is accretive with good growth opportunities going forward. Looking forward, obviously, it's going to be a function of cap rates, in terms of where we're acquiring any future assets, and the price of our stock.

當然。好吧，看，就第四季度而言，我們發行股票專門是為了在資產負債表中性的基礎上為收購融資並維持我們的財務比率。根據收購的現金上限率和 FFO 收益率，該交易具有增值性，未來具有良好的成長機會。展望未來，顯然，就我們在何處收購未來資產以及我們的股票價格而言，這將是資本化率的函數。

Okay. Great. And I guess just a follow-up. Where are you seeing cap rates for the centers you're interested in trend today? Have we seen more of a compression there since maybe we last touched on this in October, November? Thanks.

好的。偉大的。我想這只是後續行動。您在哪裡看到您今天感興趣的中心的資本化率趨勢？自從我們上次在 10 月、11 月觸及這個問題以來，我們是否看到了更多的壓縮？謝謝。

Sure. Look, there's very little activity in the market. So it's very tough to pin cap rates in this market because depending on the asset and depending on the growth profile, cap rates continue to move around. But going forward, we're expecting, with what we see in our pipeline in terms of the off-market opportunities, that cap rate, again, in the mid-6s or even a bit higher.

當然。你看，市場上的活動很少。因此，在這個市場上確定資本化率非常困難，因為根據資產和成長狀況，資本化率會持續波動。但展望未來，根據我們在場外機會方面看到的情況，我們預計上限利率將再次達到 6 左右甚至更高。

Okay. Great. And then separately, just wanted to touch on your same-store NOI outlook. And can we clarify what the exact step-ups are to that 1% to 2% range? Is most of the drag really from the downtime associated with backfilling spaces that were lost? If there's any more color you can add on the building blocks to that range, which implies a deceleration from last year's growth, that would be great.

好的。偉大的。然後，我想談談您對同店 NOI 的展望。我們能否澄清一下 1% 到 2% 範圍內的具體提升是多少？大部分的阻力真的是因為回填失去空間而造成的停機嗎？如果您可以在該範圍的基礎上添加更多顏色（這意味著去年的成長有所放緩），那就太好了。

Sure. It's purely a function of the three Rite Aids that we mentioned back on our last call and what Rich was good enough to articulate today, along with one other anchor tenant that is vacating or has vacated at the end of January. Those are really the building blocks to our same-store NOI.

當然。這純粹是我們在上次電話會議中提到的三個 Rite Aids 的功能，以及 Rich 今天所闡述的內容，以及另一位即將搬出或在一月底已搬出的主要租戶。這些確實是我們同店 NOI 的基石。

The good news is that we’re making some very good momentum in re-leasing those spaces. And as I said in the closing part of my presentation, we’re expecting most of that to be leased in the next, let’s call it first quarter, early second quarter. And we’ll see the positive impact of that as we move through the balance of the year and into ‘25.

好消息是，我們在重新出租這些空間方面取得了良好的勢頭。正如我在演講的最後部分所說，我們預計大部分將在下個季度（我們稱之為第一季、第二季初）出租。當我們度過今年剩餘的時間並進入 25 月時，我們將看到這一點的正面影響。

All right. Thank you.

好的。謝謝。

Dori Kesten, Wells Fargo Securities.

多麗‧凱斯滕 (Dori Kesten)，富國銀行證券公司。

Back to the net acquisition guide. I guess, I understand you have $100 million in the pipeline today. What gives you confidence in the $100 million to $300 million? Are you rather close to having an LOI on that $100 million?

回到網路取得指南。我想，我知道你們今天有 1 億美元的資金籌措。是什麼讓您對 1 億至 3 億美元充滿信心？您是否已經接近獲得那 1 億美元的意向書？

We've been hard at work over the last several quarters in terms of reconnecting with our, what I would call our pipeline of sellers. And we are seeing some of these sellers come under pressure as it relates to debt coming due. So we're feeling pretty good about really going out and finding very high-quality assets at compelling prices.

在過去的幾個季度中，我們一直在努力與我們的賣家管道重新建立聯繫。我們看到其中一些賣家面臨著與到期債務有關的壓力。因此，我們對於真正走出去並以極具吸引力的價格尋找非常優質的資產感覺非常好。

So as we sit here today, look, we do have some exciting opportunities ahead of us. Obviously, we're still in the due diligence stage in terms of buying these assets. But we're feeling very comfortable, sitting here today, that we'll be able to achieve, certainly, that lower end of our guidance.

因此，當我們今天坐在這裡時，我們確實面臨著一些令人興奮的機會。顯然，我們在購買這些資產方面仍處於盡職調查階段。但今天坐在這裡，我們感覺非常舒服，我們當然能夠實現我們指導的下限。

Okay. And I believe on the Q3 call, you were talking about potential acquisitions funded with OP units. Are these fees that you're referring to? Or were those other ones?

好的。我相信在第三季的電話會議上，您談論的是由 OP 部門資助的潛在收購。你說的是這些費用嗎？還是其他的？

No. Those opportunities are at our doorstep as well right now. And obviously, that equity, if we end up doing these transactions, will be at a much higher price than where our stock is currently trading.

不。這些機會現在也就在我們家門口。顯然，如果我們最終進行這些交易，該股權的價格將比我們股票目前的交易價格高得多。

Okay. And last question, in your interest expense guide for the year, what assumptions are embedded for refinancing swaps paying down with cash?

好的。最後一個問題，在你們今年的利息支出指南中，用現金支付掉期再融資的假設是什麼？

Well, the guidance is going to take into account refinancing the '24 bonds later in the year. It's really tied to the forward yield curve. That's the best thing we can use to model that interest cost out.

嗯，該指導方針將考慮到今年稍後為 24 世紀債券進行再融資。它確實與遠期殖利率曲線相關。這是我們可以用來模擬利息成本的最佳方法。

And in terms of cash flow, Mike?

就現金流而言，麥克？

Well, free cash flow, for the year, whether we use it to pay down debt or fund acquisitions, about $20 million to $30 million, depending on actual CapEx costs and interest costs through the year.

那麼，今年的自由現金流，無論我們用它來償還債務還是為收購提供資金，大約為 2000 萬至 3000 萬美元，具體取決於全年的實際資本支出成本和利息成本。

Juan Sanabria, BMO Capital Markets.

Juan Sanabria，BMO 資本市場。

Just hoping you could talk a little bit about the builder-commenced occupancy and how we should expect that to trend over '24. I'm not sure if all the Rites Aid stuff is in the base as a starting point for the year, or if you expect a seasonal dip in the first quarter. But if you could just give us a sense of the trend for the year and how we should expect the year to end, that would be great from a build occupancy perspective.

只是希望你能談談建築商開始入住的情況，以及我們應該如何預計 24 年的入住率趨勢。我不確定所有儀式援助的內容是否都以今年的起點為基礎，或者您是否預計第一季會出現季節性下降。但如果您能讓我們了解今年的趨勢以及我們應該如何預期今年結束，那麼從建築入住率的角度來看，那就太好了。

Sure. Well, we’re still making very good progress on getting the rent commenced. But as you know, as we're commencing rents, we’re adding new un-commenced rents to the bucket. And with the Rite Aids and the other anchor space we spoke of, it will take some time to refit those spaces. But we expect that we will continue to bring on the rent consistent with our historic averages.

當然。嗯，我們在開始收取租金方面仍然取得了很大進展。但如您所知，當我們開始收取租金時，我們正在將新的未開始租金添加到桶中。對於 Rite Aids 和我們談到的其他錨定空間，需要一些時間來重新裝修這些空間。但我們預計租金將繼續保持與歷史平均值一致。

Okay. but it sounds like the one anchor, the Rite Aid, the couple of closures, are in the phase to start the year, thinking about where you entered last year, and then you have one more anchor closure. Is that all the meaningful declines or negative impacts we should be factoring in for the year? I've seen some random puts and takes here and there.

好的。但聽起來，一個主播、Rite Aid、幾個關閉，正處於新年伊始的階段，想想你去年進入的位置，然後你又關閉了一個主播。這是我們今年應該考慮的所有有意義的下降或負面影響嗎？我到處都看到了一些隨機的放置和取出。

Yes.

是的。

Okay. Great. And then just curious, any update on the assets where you guys are pursuing entitlements and the processes there? And what, if anything, is assumed in guidance with starts or for monetizations of that value creation?

好的。偉大的。然後只是好奇，你們正在尋求權利的資產和那裡的流程有什麼更新嗎？如果有的話，在啟動或價值創造的貨幣化指引中假設了什麼？

Well, in terms of the crossroads, we are getting to end, in terms of the permitting process. But given the current market environment, we plan to sit tight for the time being in terms of breaking ground.

好吧，就十字路口而言，就許可流程而言，我們即將結束。但考慮到目前的市場環境，我們計劃暫時按兵不動。

We did, during the fourth quarter, finally get full entitlements in Nevada. So both the other two projects are, at this point, fully entitled. And we are engaged with a series of builders and/or buyers in the market right now to potentially sell these assets.

在第四季度，我們終於在內華達州獲得了全部權利。因此，其他兩個項目此時都完全有權。我們目前正在與市場上的一系列建築商和/或買家接觸，以可能出售這些資產。

However, the multi-family market right now is still in what I would call in a stalled stage in terms of transacting. And my personal opinion is that as we move through the year, if we can get some cap rate compression in the multi-family business, then there’s a good chance that we’ll be able to transact on these properties.

然而，目前多戶住宅市場的交易仍處於我所說的停滯階段。我個人的觀點是，隨著這一年的推移，如果我們能夠在多家族企業中獲得一定的資本化率壓縮，那麼我們很有可能能夠對這些房產進行交易。

Thank you.

謝謝。

Todd Thomas, KeyBank Capital Markets.

托德·托馬斯 (Todd Thomas)，KeyBank 資本市場部門。

A couple of questions. First, the additional anchor vacancy that you mentioned. I'm just curious how much occupancy that might represent, if you can share that. I'm just curious how much lower occupancy may go before bottoming out here, so we can just think about the trajectory of occupancy and maybe help us understand the trajectory of same-store NOI growth a little bit throughout the year. And then, Rich, can you talk about the potential mark-to-market on that space and the Rite Aids that you've discussed recapturing and re-leasing?

有幾個問題。首先，你提到的額外主播空缺。我只是好奇這可能代表多少入住率（如果您能分享的話）。我只是好奇在觸底之前入住率會下降多少，所以我們可以考慮一下入住率的軌跡，也許可以幫助我們稍微了解全年同店 NOI 的成長軌跡。然後，Rich，您能談談該空間的潛在市場價值以及您討論過的重新佔領和重新租賃的 Rite Aids 嗎？

Sure. In terms of the occupancy hit, it really won't have a significant impact, and we're still comfortable with maintaining the 97% to 98% range throughout the year. The mark-to-market on that one anchor space, it could be very significant. It's a very low single-digit rent, so we're expecting a big spread there. And then on the Rite Aids, on a blended basis, it's going to be a very nice increase as well.

當然。就入住率而言，確實不會產生重大影響，我們仍然願意全年保持在 97% 至 98% 的範圍內。這一錨定空間的按市值計價可能非常重要。這是一個非常低的個位數租金，因此我們預計那裡的價差會很大。然後在 Rite Aids 上，在混合的基礎上，它也將是一個非常好的成長。

Okay. Is there any additional impact from Rite Aid at all, assumed in the guidance? It didn't sound like it, but just curious, as things are still ongoing over there. Just curious if you have any additional assumptions at all, embedded in guidance, either around space being recaptured or potential lease negotiations.

好的。指南中假設的 Rite Aid 是否有任何額外影響？聽起來不像，但只是好奇，因為那裡的事情仍在進行中。只是好奇您是否有任何其他假設嵌入到指南中，無論是關於重新奪回空間還是潛在的租賃談判。

Well, we're really finished -- when I say finished, we have gone through and spent a lot of time with Rite Aid over the last several months. And at this point, we're just waiting to have these leases confirmed through the bankruptcy process. Anything can happen, as we know, as we get through the process, but we feel very comfortable, we sit today, that if things continue to go well and the Rite Aid comes out of bankruptcy, the extent of what we've articulated today in terms of what we've seen in vacancy will remain where it is.

好吧，我們真的完成了——當我說完成時，我們在過去的幾個月裡與 Rite Aid 一起度過了很多時間。此時，我們只是等待透過破產程序確認這些租賃。正如我們所知，當我們完成這個過程時，任何事情都可能發生，但我們感覺非常舒服，我們今天坐著，如果事情繼續順利並且 Rite Aid 擺脫破產，我們今天所闡述的程度就我們所看到的空缺而言，將保持原樣。

Okay. And then just shifting over to the acquisitions and the guidance there. I guess as it pertains to the funding and the equity issuance that's assumed alongside the investments, the range that you've provided. How price-sensitive are you to the stock price, as you look ahead here, with the growing pipeline of deals that you're seeing?

好的。然後就轉向收購和指導。我想，因為它涉及與投資一起假設的融資和股票發行，您提供的範圍。展望未來，隨著您看到的交易不斷增加，您對股價的價格敏感度如何？

Sure. Well, look, we are very sensitive to price. But again, we feel pretty good, looking at the pipeline in terms of possible accretion, in terms of if we decide to issue equity, I think, again, will be a function of the price of where we're buying these assets and the price of our stock. But certainly, we'll monitor things as we move along, both in terms of timing and in terms of issuing equity, if we decide to go that route, as it relates to issuing that equity.

當然。嗯，看，我們對價格非常敏感。但同樣，我們感覺很好，從可能的增值角度來看，就我們是否決定發行股票而言，我認為，這將取決於我們購買這些資產的價格和我們的股票價格。但當然，如果我們決定走這條路，我們會在進展過程中監控時間和發行股票方面的情況，因為這與發行股票有關。

Okay. At the midpoint of the guidance, I guess, for acquisitions, for equity issuance, I mean, how much accretion is built into the guidance that you're anticipating from this investment activity and, I guess, the capital raising activity inside all that? On a leverage-neutral basis, just with where the company's blended cost capital is today, equity debt also in the mid- to high-6% range, I'm just wondering how much accretion that you're anticipating, or what's embedded in the guidance.

好的。在指導的中間點，我想，對於收購，對於股票發行，我的意思是，您預期從這項投資活動以及所有這些活動中的融資活動中獲得多少增值？在槓桿中立的基礎上，就公司目前的混合成本資本而言，股本債務也在 6% 的中高範圍內，我只是想知道您預計會增加多少，或者其中包含什麼指引。

Hey, Todd, it's Mike. So looking at the low and the high end, on the low end, we acquired about $100 million; we're expecting that to add about $0.01, $0.01. And on the high end would be about $0.03. So at the midpoint, if you do $200 million, it's going to be $0.02. That's just ballparking the use of equity and debt to buy those acquisitions.

嘿，托德，我是麥克。所以看看低端和高端，在低端，我們收購了大約 1 億美元；在低端，我們收購了大約 1 億美元；在低端，我們收購了大約 1 億美元。我們預計會增加約 0.01 美元、0.01 美元。高端價格約為 0.03 美元。因此，在中點，如果您投入 2 億美元，則為 0.02 美元。這只是大致利用股權和債務來購買這些收購。

Okay. All right. That's helpful. One last one, Mike. On the interest expense question from earlier, though, that is tied to the acquisitions, right? And you're assuming about, I guess 40% debt financing, or really maybe 30% or 35%, assuming you reinvest your free cash flow into acquisition.

好的。好的。這很有幫助。最後一件事，麥克。不過，關於之前的利息支出問題，這與收購有關，對吧？你假設，我猜 40% 的債務融資，或者實際上可能是 30% 或 35%，假設你將自由現金流再投資於收購。

Right.

正確的。

So if you do not acquire assets, the interest expense would be below the guidance range, right?

那麼如果你不收購資產，利息支出就會低於指導範圍，對吧？

Presumably, yes. That's correct. And then we also have the refinancing activities we have to do, and that's going to be depending on where the yield curve as we move through the year. Obviously, we had a hiccup this year, early this week with the CPI, but we'll see where the 10-year treasury goes as we move through the year.

想必是的。這是正確的。然後我們還必須進行再融資活動，這將取決於我們一年中收益率曲線的位置。顯然，今年我們在本周初的消費者物價指數 (CPI) 上遇到了一些麻煩，但隨著這一年的推移，我們將看到 10 年期國債的走向。

Okay. But the debt portion of the acquisition activity that you'll be funding, that, you're assuming is being funded on the line?

好的。但是您將資助的收購活動的債務部分，您假設正在籌集資金嗎？

Correct.

正確的。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Paulina Rojas, Green Street.

寶琳娜·羅哈斯，格林街。

Last time we spoke, I think we talked about one of the Rite Aid leases being rejected, and the other two being in a sale process. So I'm curious, why weren't those leases acquired if they had meaningful mark-to-market. And I wonder if it's because of the term, if they have legal-term left.

上次我們談話時，我想我們談到了 Rite Aid 的一份租約被拒絕，另外兩份租約正在出售過程中。所以我很好奇，如果這些租賃具有有意義的市價，為什麼沒有獲得這些租賃。我想知道是否是因為這個術語，他們是否還剩下法律術語。

Sure. Those two locations -- you're right, were offered for sale by Rite Aid. But the feedback we received from Rite Aid was that they were not willing to pay the dead rent, the administrative rent that's required to be paid on those locations. So if people didn't step up immediately and agree to pay that dead rent, even while they were doing due diligence, they were just moving forward with rejecting those leases. So that was their strategy out of the gate. And those two locations, no one jumped fast enough.

當然。這兩個地點——你是對的，是由 Rite Aid 出售的。但我們從 Rite Aid 收到的回饋是，他們不願意支付死租金，也就是這些地點需要支付的行政租金。因此，如果人們沒有立即站出來同意支付死租金，即使他們在進行盡職調查，他們也只是在拒絕這些租約。這就是他們的策略。而那兩個地點，沒有人跳得夠快。

However, as we touched on, there is a good mark-to-market on those leases. And we have had very strong interest in the spaces.

然而，正如我們所提到的，這些租賃的市場價格良好。我們對這些空間產生了非常濃厚的興趣。

Thank you. My other question is, the Kroger-Albertsons merger, it’s a risk, right? And it's potentially weighing on their stock as well. So is there anything you can do today, proactively, to prepare for the consequences of this merger? What it could have, not immediately, but in the medium term. Or you're really -- there is not much you can do today you're putting the topic to rest until there are more news?

謝謝。我的另一個問題是，克羅格-艾伯森的合併是有風險的，對嗎？這也可能會給他們的股票帶來壓力。那麼，您今天可以採取哪些積極主動的措施來為這次合併的後果做好準備呢？它可能會帶來什麼，不是立即的，而是中期的。或者你真的——今天你無能為力，只能暫時擱置這個話題，直到有更多消息為止？

Look, we've been analyzing this transaction internally now for almost two years. But look, we continue to communicate a lot with both Kroger and Albertsons and conduct business as usual, including renewing leases. And their discussions -- they have ongoing discussions, as we all know, with the government, so they're not yet in a position to disclose what specific stores will be sold as part of the merger. And we haven't spoken to CNS as well. So there's not much more I can tell you as it relates to your question. I mean, we're all waiting at this point. And we do think the outcome of this will not have much impact, in terms of ROIC.

看，我們內部分析這筆交易已經快兩年了。但看，我們繼續與克羅格和艾伯森進行大量溝通，並照常開展業務，包括續約租約。眾所周知，他們正在與政府進行討論，因此他們還無法透露合併後將出售哪些特定商店。我們也沒有與 CNS 交談過。因此，我無法告訴您更多與您的問題相關的資訊。我的意思是，我們都在等待這一點。我們確實認為，就投資報酬率而言，這項結果不會產生太大影響。

How do you assess the appetite of other grocers for the space?

您如何評估其他雜貨店對該空間的興趣？

Very strong, extremely strong. We've had a series of LOIs already come in for a number -- not a number, but some locations, on the assumption that CNS may take one or two of these locations. But again, there’s nothing we can do at this point until there’s more clarity.

非常強，非常強。我們已經收到了一系列關於某個數字的意向書——不是一個數字，而是一些地點，假設 CNS 可能會佔領其中的一個或兩個地點。但同樣，在情況變得更加清晰之前，我們目前無能為力。

Thank you.

謝謝。

Michael Mueller, JPMorgan.

邁克爾·穆勒，摩根大通。

A lot of stuff has been answered, but maybe one thing, and I apologize if this was addressed. I missed the first part of the call. But what's the biggest thing that you would say that has changed as it relates to acquisitions where you're coming off of 2023, but now you have pretty good expectations for 2024. When you're talking to sellers, I mean, what do they point to that gives you better confidence?

很多問題已經得到解答，但也許有一件事，如果這個問題得到解決，我深感抱歉。我錯過了通話的第一部分。但你會說最大的變化是什麼，因為它與 2023 年結束時的收購有關，但現在你對 2024 年有相當好的期望。當你與賣家交談時，我的意思是，他們指出了什麼讓你更有信心？

I think what's changed out there, Mike, is that a lot of sellers were on the sidelines in '23. But as mortgages are coming due, as redemptions are coming in from the institutional community, we seem to be making very good headway in terms of these conversations. And more importantly, finding what I would call very high-quality at compelling prices.

麥克，我認為發生的變化是，23 年很多賣家都在觀望。但隨著抵押貸款即將到期，隨著機構群體的贖回不斷到來，我們似乎在這些對話方面取得了非常好的進展。更重要的是，以極具吸引力的價格找到我所說的非常高品質的東西。

So it's really, the market is beginning to change in terms of some of these sellers come into the realization that they've got to do something now rather than wait three months, six months, nine months as it relates to either debt coming due, or to potentially move equity or to redeem some of what's in queue in terms of cash, as you might say. But that's what we're seeing out there. There's a bit of a change occurring. And for us, we are certainly in some very productive conversations in terms of meeting the goals that we've set out to shareholders.

因此，市場確實開始發生變化，其中一些賣家意識到他們必須現在就採取行動，而不是等待三個月、六個月、九個月，因為這與即將到期的債務有關，或者可能會轉移股權或以現金形式贖回一些正在排隊的資產，正如您可能會說的那樣。但這就是我們所看到的。正在發生一些變化。對我們來說，在實現我們向股東設定的目標方面，我們肯定正在進行一些非常有成效的對話。

Got it. And then maybe take a shot at Juan's question a different way here. If we're looking at the year-end build occupancy, it seems like you're going to have a move out on the anchor side that will pull it down a little bit. Where in 2024 or when in 2024 do you get to the point where build occupancy in flex and starts to move back up?

知道了。然後也許可以用不同的方式來回答胡安的問題。如果我們考慮年底的建築入住率，似乎您將在錨定一側進行搬遷，這會將其稍微拉低。2024 年什麼時候或 2024 年什麼時候你會達到 Flex 入住率並開始回升的程度？

I think it’s going to be closer to the end of the year as we work through these leases and then we also get commenced on all the leases that are currently in the pipeline.

我認為，隨著我們完成這些租賃，然後我們也會開始處理目前正在醞釀中的所有租賃，時間將接近年底。

Wesley Golladay, Baird.

韋斯利·戈拉迪，貝爾德。

Just another follow-up on that one anchor lease that you mentioned. I mean it looks like you have clear runway outside of that one lease all the way to 2026. But for that anchor, what percentage of the ABR do they represent? And how soon do you think you'll resign leases for that space? And when do you think the tenants will open for that?

這只是您提到的錨定租賃的另一個後續行動。我的意思是，看起來除了那一份租約之外，你還有暢通無阻的跑道，一直到 2026 年。但對於那位主播來說，他們佔 ABR 的百分比是多少？您認為您多久會放棄該空間的租約？您認為租戶什麼時候會開放？

Rich. It's a very little bit of our ABR. I don't have the exact percentage here in front of me. And really, we're at now is we're trying to pick the best tenant for the space. We have a lot of demand from a lot of different tenants. And one of the factors we're taking into account is obviously the cost of getting them in and the time we're getting the rent commenced. So we want to make sure we pick the right tenant. And look, we see a lot of demand for the space and expect to have a very nice spread in the rents.

富有的。這是我們 ABR 的一小部分。我面前沒有確切的百分比。事實上，我們現在正在努力為這個空間挑選最好的租戶。我們有來自許多不同租戶的大量需求。我們考慮的因素之一顯然是讓他們入住的成本以及我們開始收取租金的時間。因此，我們要確保選擇正確的租戶。看，我們看到對該空間的大量需求，並預計租金會有非常好的價差。

Yes, the mark-to-market on that particular space is going to be quite good, depending on what we end up doing. But the tenant's currently paying a modified triple-net lease at about $6 a square foot per year.

是的，該特定領域的以市價計算將會相當不錯，具體取決於我們最終要做的事情。但租戶目前支付修改後的三網租金，每年每平方英尺約 6 美元。

You mentioned it would be an entertainment concept. Should we expect an uptick in tenant improvements there?

你提到這將是一個娛樂概念。我們是否應該期待那裡的租戶改善增加？

Yes. And that's what we're taking into account as we speak is, yes, some of these entertainment uses will cost a little bit more to refit the space, converting it from retail, but they're also the highest rent payers. So we're balancing all of those factors.

是的。這就是我們正在考慮的問題，是的，其中一些娛樂用途將花費更多的費用來改造空間，將其從零售轉變，但他們也是最高的租金支付者。所以我們正在平衡所有這些因素。

Yes, fair point. And then lastly, just on the acquisitions. The stock's sitting at $13 a share today, 7 -- a little north of a 7 cap, I don't know the numbers you're using. How sensitive are you at these levels to pursue external growth?

是的，公平一點。最後，關於收購。該股今天的價格為每股 13 美元，7——略高於 7 上限，我不知道你使用的數字。在這些層面上，您對於追求外部成長有多敏感？

We're sensitive. I mean when I say that, obviously, we’ve realized where our cost of capital is, and we want to be smart in terms of buying and concurring with buying assets, raising equity in terms of our balance sheet. So we're watching, obviously, the price, like everyone else. But we feel pretty good in terms of where these assets are going to end up in terms of cap rates and our FFO yield on these assets. So we'll see how things progress as we move through the year.

我們很敏感。我的意思是，當我這麼說時，顯然我們已經意識到我們的資本成本在哪裡，我們希望在購買和同意購買資產方面保持明智，並根據我們的資產負債表提高股本。因此，顯然，我們和其他人一樣正在關注價格。但我們對這些資產的上限利率和這些資產的 FFO 收益率的最終結果感到非常滿意。因此，我們將在這一年中看到事情的進展。

Okay. And then on a quality perspective, where would you rank these assets if you were to acquire them within the work portfolio?

好的。然後從品質的角度來看，如果您要在工作組合中取得這些資產，您會將它們排在什麼位置？

These will be some of the highest-quality assets that we have acquired in the last 10 to 13 years.

這些將是我們在過去 10 到 13 年中收購的一些最優質的資產。

Got it. Thank you.

知道了。謝謝。

Craig Mailman, Citi.

克雷格‧梅爾曼，花旗銀行。

A couple of quick ones and then one of the big picture one. But just noticed the -- your amortization of below and above market leases ticked up here relative to last year. What's driving that?

幾個快速的，然後是一個大圖片的。但剛剛注意到——與去年相比，低於和高於市場租金的攤銷有所增加。是什麼推動了這一點？

Are you talking about the actual for '23 or for '24's guidance?

您是在談論 '23 的實際情況還是 '24 的指導情況？

The '24’s guidance with the $14 million there. I'm just trying to see, is there anything one-time there for --

'24' 的指導值為 1400 萬美元。我只是想看看，有什麼一次性的事情可以做嗎？--

Yes, there is. That’s going to occur in the first quarter. It's related to the lease that Rich was referring to. When you do the original FAS 141 purchase price allocation, they assume that option periods are going to be exercised. And in this case, they weren't. So that below-market lease liability is going to be one-time additive event in Q1.

就在這裡。這將在第一季發生。這與里奇提到的租約有關。當您執行原始 FAS 141 購買價格分配時，他們假設將執行選擇期。但在這種情況下，他們卻沒有。因此，低於市場水平的租賃負債將成為第一季的一次性累加事件。

Okay. But how much of the $14 million is going to be in 1Q?

好的。但這 1400 萬美元中有多少會出現在第一季？

I think -- I don't have the exact number in front of me. I want to say it's around $4 million.

我想——我面前沒有確切的數字。我想說大約是400萬美元。

So there's nothing related to Rite Aid and that's solely the anchor being done?

那麼，與 Rite Aid 沒有任何關係，而這只是正在完成的錨點？

No, that's just that. Yes, the rest of it is all the other leases just regularly amortizing down over time.

不，僅此而已。是的，剩下的就是所有其他租賃，只是隨著時間的推移定期攤銷。

Perfect. And then on bad debt, is there anything specific related to Rite Aid? Or is that just your general placeholder at this point in the year on the initial outlook?

完美的。那麼關於壞賬，有什麼與 Rite Aid 有關的具體內容嗎？或者這只是您今年此時對初步展望的一般佔位符？

It's just a general place holder in the outlook. Yes, the bad debt in $24 million to $35 million range is our standard. And if there's anything relative right, we do well within our budget.

它只是 Outlook 中的一般佔位符。是的，2400萬至3500萬美元範圍內的壞帳是我們的標準。如果有什麼相對正確的事情，我們會在預算範圍內做得很好。

Okay. And then circling back to acquisitions, more big picture here. Stuart, I think you just said, if you can acquire some of these assets, it'd be the highest quality. You've bought in the last 10 to 13 years. And you guys are targeting high 6s. I'm just trying to get a sense, I have you guys trading in the low 7s, depending on where you guys think NAV is today.

好的。然後回到收購，這裡有更多的大局。斯圖爾特，我想你剛才說過，如果你能獲得其中一些資產，那將是最高品質的。您在過去 10 到 13 年裡購買過。你們的目標是高 6。我只是想了解一下，我讓你們以低 7 的價格進行交易，這取決於你們認為今天的資產淨值在哪裡。

I mean, are these private market trades just really indicative of where the market should be? And I know you guys have talked a lot about your stock being a little bit undervalued here. But does your ability to break some of these loose and sellers getting more willing to transact at these levels change your view at all of your discount to NAV?

我的意思是，這些私人市場交易真的能顯示市場應該處於什麼位置嗎？我知道你們已經談論了很多關於你們的股票在這裡被低估的事情。但是，您打破這些鬆動的能力以及賣家變得更願意在這些水平上進行交易的能力是否會改變您對資產淨值折扣的看法？

And again, I know it's been brought up a lot on this call, your sensitivity to issuing equity here to buy these. I'm just trying to get a sense of what's the real accretion here to NAV even though maybe you're getting a little bit of accretion here to earnings out of the gate?

再說一次，我知道在這次電話會議上，你們對在這裡發行股票購買這些股票的敏感度被提出了很多。我只是想了解資產淨值的真正成長是多少，儘管也許你一開始就獲得了一點收益成長？

Well, undervalued is an understatement in my humble opinion, in terms of where the stock is trading. But yes, I mean, look, we will -- this is not a market indication in terms of where the market is, or the market is going. These are transactions that are done principal to principal.

嗯，就股票的交易地點而言，以我的拙見，「低估」是一種輕描淡寫的說法。但是，是的，我的意思是，看，我們會的——這並不是市場狀況或市場走向的市場指示。這些交易是委託人對委託人進行的。

And again, there's typically a reason why we're getting better pricing, whether it's timing or other moving pieces, that's really what's driving the transactions from our perspective. So again, this isn't a mark-to-market. It's just the ability -- this is what we do best as a management team. I mean we've been doing this for 30 years. We have acquired a number of assets on the West Coast, and we have a pretty good idea what we're buying and the accretion we can get from these assets. I mean not only do we think we will be buying them, hopefully accretively, as we close these transactions, but it's what comes afterwards that's more important in terms of growth. So we're excited, and we'll see how things go as we move through the year.

再說一次，我們獲得更好的定價通常是有原因的，無論是時機還是其他變化因素，從我們的角度來看，這確實是推動交易的原因。再說一次，這不是按市值計價。這只是能力——這是我們身為管理團隊最擅長的。我的意思是我們已經這樣做了 30 年。我們在西海岸收購了許多資產，我們非常清楚我們要購買什麼以及我們可以從這些資產中獲得多少收益。我的意思是，當我們完成這些交易時，我們不僅認為我們會購買它們，希望能夠增加購買量，而且在成長方面，之後發生的事情更為重要。所以我們很興奮，我們將看看這一年的情況如何。

What do you think the growth profile of some of these assets is relative to your legacy portfolio?

您認為其中一些資產的成長狀況與您的遺留投資組合有何關係？

What we're looking at is probably going to deliver probably a 3% internal growth, maybe a bit better, it just depends on how we manage and how we lease. I mean the one thing that we do well is we stay ahead of this tenant base, and as you have seen and heard many years, we were very proactive in terms of capturing what I would call the mark-to-market on the assets we own, and we buy.

我們所期望的可能會實現 3% 的內部成長，也許更好一點，這只取決於我們如何管理和如何租賃。我的意思是，我們做得好的一件事是我們保持領先於這個租戶群，正如您多年來所看到和聽到的那樣，我們非常積極主動地捕捉我所說的資產的按市值計價。擁有，我們購買。

And not to belabor the point because I know it's been addressed. But just as you, guys, think about the appropriate investment spread relative to your cost of capital at least what's the minimum accretion you need is, where are you thinking these days? Is it 50 basis points? Is it 100? Kind of where is the minimum also taking into account that maybe longer-term growth? Or other opportunities within the asset that you can unlock going forward?

不再贅述這一點，因為我知道這個問題已經解決。但是，正如你們，夥計們，考慮相對於您的資本成本而言適當的投資利差，至少您需要的最低增值是多少，您現在在想什麼？是50個基點嗎？是100嗎？考慮到長期成長，最低限度在哪裡？或者您可以在未來釋放該資產中的其他機會？

Yes. Look, it’s just a function of looking at the underlying leases and what we’re getting from those leases as it relates to rollover or what we can potentially terminate and get a much higher mark-to-market on. So that internal growth is very important from our perspective, and every situation is different. I don’t know if you want to add anything to that, Rich?

是的。看，這只是查看基礎租賃以及我們從這些租賃中獲得的收益的函數，因為它與展期或我們可能終止的內容有關，並獲得更高的市價。所以從我們的角度來看，內部成長非常重要，而且每種情況都不同。我不知道你是否想補充一些內容，Rich？

All right. Great. Thank you.

好的。偉大的。謝謝。

Linda Tsai, Jefferies.

琳達·蔡，杰弗里斯。

In 2023, bad debt was $3.4 million, and you have a $3 million to $5 million bad debt expectation for '24. Can you just remind us how this compares to history?

2023 年，壞帳為 340 萬美元，24 年壞帳預期為 300 萬至 500 萬美元。您能提醒我們這與歷史相比如何嗎？

I think I would take Covid out of that in terms of history. (laughter) I think we got probably initially a little bit considerably. Our normal bad debt budget is 1.5% of total revenue. So we put some goalposts around that for guidance. 2023 might have been a little bit higher than our normal, but $3 million to $5 million is just a general range to see what happens with the tenant base over the year.

我想我會把新冠病毒從歷史中剔除。（笑聲）我認為我們最初可能取得了相當大的進展。我們正常的壞帳預算是總收入的 1.5%。因此，我們在其周圍設置了一些目標作為指導。 2023 年可能會比我們的正常水平稍高一些，但 300 萬至 500 萬美元只是一個大致範圍，可以了解一年中租戶基礎的變化。

Got it. And then your occupancy has weighed down a little bit by Rite Aid, but presumably still pretty high on an absolute basis. Just generally, like how are you feeling about the overall retail environment as it relates to retailer demand versus store closures?

知道了。然後，您的入住率因 Rite Aid 的影響而有所下降，但從絕對意義上講，您的入住率可能仍然相當高。一般來說，您對整體零售環境的感受如何，因為它與零售商需求和商店關閉有關？

Yes, retail demand continues to be very strong, as we've touched on a few times during the call, when we do get a space back, there's typically multiple LOIs, helpful offers on the spaces. And we see the tenant base on the West Coast buying for the product that we have with grocery-anchored product is still a very high demand.

是的，零售需求仍然非常強勁，正如我們在電話會議中多次提到的那樣，當我們確實獲得空間時，通常會有多個意向書，對空間有幫助的報價。我們看到西海岸的租戶群購買我們的雜貨錨定產品的需求仍然非常高。

I mean, the numbers this morning were very strong as it relates to the resiliency of our tenant base, Linda. Pharmacy was up almost 7%. Grocery was up 3%. Restaurants were up 6%. I mean these are very, very strong numbers in terms of what we're seeing so far in '24. So we think certainly, the grocery-anchored segment of retail is going to hold up quite well.

我的意思是，今天早上的數字非常強勁，因為這與我們租戶群 Linda 的彈性有關。藥局上漲近7%。雜貨上漲 3%。餐廳上漲了 6%。我的意思是，就我們 24 年迄今所看到的情況而言，這些數字非常非常強勁。因此，我們認為，以雜貨為主的零售業肯定會保持良好的勢頭。

Great. Thank you.

偉大的。謝謝。

I'm currently showing no further questions at this time. I'd like to turn the call back over to Mr. Stuart Tanz for closing remarks.

我目前沒有提出任何進一步的問題。我想將電話轉回給斯圖爾特·坦茲 (Stuart Tanz) 先生致閉幕詞。

Great. In closing, thank you all for joining us today. As always, we appreciate your interest in ROIC. If you have any additional questions, please contact Lauren, Mike, Rich, or me directly. Also, you can find additional information in the company’s quarterly supplemental package, which is posted on our website, as well as our 10-K. Thanks again, and have a great day, everyone.

偉大的。最後，感謝大家今天加入我們。一如既往，我們感謝您對 ROIC 的興趣。如果您還有任何其他問題，請直接聯絡 Lauren、Mike、Rich 或我。此外，您還可以在我們網站上發布的公司季度補充包以及我們的 10-K 中找到更多資訊。再次感謝，祝大家有美好的一天。

This concludes today's conference call. Thank you for your participating. You may now disconnect. Everyone, have a wonderful day.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。祝大家有美好的一天。