Retail Opportunity Investments Corp (ROIC) 2024 Q3 法說會逐字稿

Welcome to Retail Opportunity Investments' third-quarter 2024 conference call. (Operator Instructions) Now I would like to introduce Lauren Silveira, the company's Chief Accounting Officer.

歡迎參加 Retail Opportunity Investments 2024 年第三季電話會議。（操作員須知） 現在我想介紹一下公司的首席會計長Lauren Silveira。

Thank you. 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。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。參與者應參考公司向 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 morning, 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，大家早安。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。

Before we begin, over the past several months, we've received a number of questions regarding speculation in the market. As a matter of company policy, we do not comment on market rumors or speculation and will not do so today. What we will say is that the company carefully evaluates all opportunities to enhance value with the objective of taking actions that this company firmly believes are in the best interest of all stakeholders.

在我們開始之前，在過去的幾個月裡，我們收到了許多有關市場投機的問題。根據公司政策，我們不對市場傳言或猜測發表評論，今天也不會這樣做。我們要說的是，公司會仔細評估所有提升價值的機會，以採取公司堅信符合所有利害關係人最佳利益的行動為目標。

Turning to the company's performance, we are pleased to report that the fundamentals of our grocery-anchored shopping centers and the grocery-anchored sector as well as the fundamentals of our protected supply-constrained markets all remain rock solid and continue to be our long-standing core drivers of our business. Perhaps the best evidence of this is our portfolio lease rate, which has been above 96% for the past 10 years and today stands at a strong 97.1%.

談到公司的業績，我們很高興地報告說，我們以雜貨為主的購物中心和以雜貨為主的行業的基本面以及受保護的供應受限市場的基本面仍然堅如磐石，並繼續成為我們的長期目標。也許最好的證據就是我們的投資組合租賃率，過去 10 年高於 96%，如今高達 97.1%。

Our ability to consistently maintain a high portfolio lease rate is underscored by the strong long-standing demand for space, which continues to come from a growing wide range of diverse tenants. Capitalizing on the demand through the first nine months of 2024, we've already leased well over 1.2 million square feet of space, including over 450,000 square feet in the third quarter alone. Additionally, we continue to capitalize on the demand to enhance tenancies at every opportunity as well as to drive rents higher. In fact, we are currently on track to post our 12th consecutive year of achieving solid rent growth on both new and renewed leases.

對空間的長期強勁需求凸顯了我們持續維持高投資組合租賃率的能力，而這種需求持續來自越來越多的多元化租戶。利用 2024 年前 9 個月的需求，我們已經租賃了超過 120 萬平方英尺的空間，其中僅第三季就租賃了超過 45 萬平方英尺。此外，我們繼續利用一切機會增加租賃並推高租金。事實上，我們目前預計將連續 12 年在新租約和續約租約上實現租金穩健成長。

Along with enhancing the value of our portfolio through our leasing initiatives, we continue to implement our investment program that is aimed at enhancing the long-term value of our portfolio through disposing certain fully valued properties while acquiring exceptional grocery-anchored shopping centers. During the third quarter, we sold two properties: one located in San Diego and the other located up in Seattle. While both properties were stable assets, we felt the growth prospects going forward were limited. And now is the appropriate time to sell each property and capitalize on the value that we created.

除了透過租賃計劃提高我們的投資組合的價值外，我們還繼續實施投資計劃，旨在透過出售某些完全估值的房產同時收購卓越的雜貨店購物中心來提高我們的投資組合的長期價值。在第三季度，我們出售了兩處房產：一處位於聖地牙哥，另一處位於西雅圖。雖然這兩處房產都是穩定資產，但我們認為未來的成長前景有限。現在是出售每項財產並利用我們創造的價值的適當時機。

In terms of acquisitions, as we previously reported back in the second quarter, we acquired a terrific dual grocery-anchored shopping center that is situated in one of the most sought-after affluent communities in the San Diego market, truly irreplaceable real estate.

在收購方面，正如我們之前在第二季度報導的那樣，我們收購了一個很棒的雙雜貨錨定購物中心，該購物中心位於聖地亞哥市場上最受歡迎的富裕社區之一，是真正不可替代的房地產。

In terms of the economics, we sold the two properties for a total of $69 million, equating to a blended exit cap rate in the low 6% range. Both properties were sold to private 1031 buyers in separate transactions. With respect to the acquisition, which we sourced through a long-standing off-market relationship, the purchase price was $70 million, equating to a going-in cap rate in the high 6% range, which we've already started to increase through quickly leasing available space at the center. Going forward, we expect to grow the yield notably over the next several years through re-leasing below-market space as well as enhancing the in-line tenant mix.

從經濟角度來看，我們以總計 6,900 萬美元的價格出售了這兩處房產，相當於 6% 左右的混合退出上限利率。這兩處房產均在單獨交易中出售給私人 1031 買家。此次收購是我們透過長期的場外關係進行的，收購價格為 7,000 萬美元，相當於 6% 的上限，我們已經開始透過快速租賃中心的可用空間。展望未來，我們預計透過重新租賃低於市場的空間以及增強內線租戶組合，收益率將在未來幾年顯著成長。

In addition to these transactions, we are currently exploring selling an additional property here in the fourth quarter and have also identified a couple of potential off-market acquisition opportunities that if we decide to move forward with, we would look to close quickly possibly before year-end, given that we know both properties very well.

除了這些交易之外，我們目前正在探索在第四季度出售額外的房產，並且還確定了一些潛在的場外收購機會，如果我們決定繼續推進，我們將尋求可能在今年之前迅速完成-結束，鑑於我們非常了解這兩個屬性。

Now I'll turn the call over to Michael Haines to take you through our financial results for the third quarter. Mike?

現在我將把電話轉給麥可·海恩斯，向您介紹我們第三季的財務表現。麥克風？

Thanks, Stuart. GAAP net income attributable to the common shareholders totaled $32.1 million for the third quarter of 2024, equating to $0.25 per diluted share. Included in GAAP net income is $26.7 million of gain on sales from the two properties that we sold during the third quarter. On a same-center cash basis, net operating income for the third quarter was down slightly, as we anticipated, by about 2% as compared to same-center NOI from the third quarter of last year, driven by lease recapture income, which was notably higher in the third quarter of last year as a result of recapturing spaces that had considerable term remaining on the leases, all of which we have since released and at significantly higher rents on average.

謝謝，斯圖爾特。2024 年第三季 GAAP 歸屬於普通股股東的淨利總計 3,210 萬美元，相當於稀釋後每股收益 0.25 美元。GAAP 淨利潤中包括我們在第三季出售的兩處房產的 2,670 萬美元銷售收益。在同中心現金基礎上，第三季淨營業收入小幅下降，正如我們預期的那樣，與去年第三季度同中心 NOI 相比，下降約 2%，主要是受到租賃收回收入的推動，該收入為去年第三季的租金明顯更高，因為我們重新收回了剩餘的相當長租期空間，所有這些空間我們都已釋放，平均租金顯著提高。

In terms of the first nine months of 2024, same-center NOI increased by 1.5% as compared to the first nine months of last year. With respect to funds from operations, for the third quarter, FFO totaled $33.2 million, equating to $0.25 per diluted share. The two property sales, particularly the larger sale, which occurred early in the third quarter, impacted FFO along with higher interest expense as compared to a year ago. In terms of FFO for the full year, given that through the first nine months, FFO totaled $0.70 per diluted share, we currently expect to finish 2024 with FFO per diluted share for the year in the $1.03 to $1.05 range.

2024年前9個月，同中心NOI較去年1-9個月成長1.5%。就營運資金而言，第三季的 FFO 總額為 3,320 萬美元，相當於稀釋後每股 0.25 美元。兩筆房產銷售，尤其是第三季初發生的較大一筆銷售，影響了 FFO，同時利息支出較上年同期增加。就全年 FFO 而言，考慮到前 9 個月，FFO 攤薄後每股收益總計 0​​.70 美元，我們目前預計 2024 年結束時，全年攤薄後每股 FFO 將在 1.03 至 1.05 美元範圍內。

With respect to same-center NOI growth, we continue to expect that it will be in the 1% to 2% range on a year-over-year basis. As we commented on our last call, our ongoing anchor re-leasing activity and the associated downtime between leases has muted same-center NOI growth this year. As we complete the anchor releasing, looking ahead at next year, as new anchors take occupancy together with targeted re-leasing opportunities in 2025, we expect same-center NOI growth will be in line with our historical average potentially stronger.

至於同中心 NOI 成長，我們繼續預期年成長將在 1% 至 2% 範圍內。正如我們在上次電話會議中所評論的那樣，我們正在進行的主力轉租活動以及租賃之間相關的停機時間已經抑制了今年同中心 NOI 的成長。隨著我們完成主力釋放，展望明年，隨著新主力入駐以及 2025 年有針對性的轉租機會，我們預計同中心 NOI 增長將與我們的歷史平均水平保持一致，可能會更強。

Lastly, turning to our balance sheet, specifically, as it relates to the $250 million of senior notes that mature in December, we are closely monitoring the market and are in a position to move forward expeditiously with refinancing the bonds. Now I'll turn the call over to Rich Schoebel, our COO, to discuss property operations. Rich?

最後，轉向我們的資產負債表，特別是因為它涉及 12 月到期的 2.5 億美元優先票據，我們正在密切關注市場，並能夠迅速推進債券再融資。現在我將把電話轉交給我們的營運長 Rich Schoebel，討論房地產營運事宜。富有的？

Thanks, Mike. To expand on Stuart's comments regarding tenant demand and just how strong it is, a trend that started a few years ago of prospective tenants submitting standing offers to lease space whenever it may come available and prospective tenants being willing to sign leases before the space is actually available continues to gain momentum across our portfolio in markets today. Additionally, like-for-like tenants are increasingly jumping at the chance to lease space that fits their infrastructure needs and are proactively seeking out such opportunities. All in all, demand across our grocery-anchored portfolio continues to be strong and continues to come from a broad range of necessity, service, and destination tenants.

謝謝，麥克。為了擴展斯圖爾特關於租戶需求及其強度的評論，幾年前開始出現一種趨勢，即潛在租戶只要有可用空間就提交租賃空間的長期報價，並且潛在租戶願意在空間實際可用之前簽署租約。上我們的投資組合持續保持強勁勢頭。此外，同類租戶越來越多地抓住租賃適合其基礎設施需求的空間的機會，並積極尋找此類機會。總而言之，我們以雜貨為主的產品組合的需求仍然強勁，並且繼續來自廣泛的必需品、服務和目的地租戶。

Turning to our leasing results. During the third quarter, we leased over 450,000 square feet of space, the bulk of which involve renewing long-standing valued tenants. And year to date, we have thus far leased over 1.2 million square feet with over three-quarters of that being renewal activity. The bulk of our renewal activity continues to center around anchor tenants, many of which continue to renew well ahead of their scheduled maturities. In fact, of the six anchor leases that we renewed during the third quarter, all six were not scheduled to mature until next year.

轉向我們的租賃結果。第三季度，我們租賃了超過 450,000 平方英尺的空間，其中大部分涉及更新長期有價值的租戶。今年迄今，我們已租賃超過 120 萬平方英尺，其中超過四分之三用於更新活動。我們的大部分續約活動仍然以主力租戶為中心，其中許多租戶繼續比預定到期時間提前續約。事實上，在我們第三季續約的六份主力租約中，所有六份租約預計要到明年才會到期。

Furthermore, at the beginning of 2024, we had 22 anchor leases scheduled to mature next year in 2025, totaling 708,000 square feet. Based on our early renewal and re-leasing initiatives, we now have only 10 anchor leases scheduled to mature next year, totaling just 317,000 square feet. And based on our discussions to date with these tenants, we currently expect that all 10 will renew.

此外，在 2024 年初，我們有 22 個主力租賃計劃於明年 2025 年到期，總計 708,000 平方英尺。根據我們早期的續約和轉租計劃，我們現在只有 10 個預計明年到期的主力租約，總面積僅為 317,000 平方英尺。根據我們迄今為止與這些租戶的討論，我們目前預計所有 10 個租戶都將續約。

With respect to re-leasing rent growth, as Stuart indicated, we continue to have good success at driving rents higher. Specifically, during the third quarter, we achieved a 14% cash increase on new leasing activity on a same-space comparative basis and a 7% increase on our renewal activity.

關於轉租租金成長，正如史都華所指出的那樣，我們在推高租金方面繼續取得了良好的成功。具體來說，在第三季度，我們在同空間比較基礎上新租賃活動的現金增加了 14%，續租活動的現金增加了 7%。

In terms of Rite Aid, as recently reported, they are now moving forward as a private company with new leadership. With respect to the 11 Rite Aid stores in our portfolio, all 11 leases have been extended for another five years on average, maintaining the previous in-place base rents. As part of extending the leases, some additional TIs were provided on our part to be put towards the repositioning initiatives, which is reflected in our third-quarter leasing statistics table. In terms of the four Rite Aid stores that we recaptured, the new tenants that we signed to replace Rite Aid are already underway with the respective build-out plans, and these new tenants-based rent is over 20% higher on average from what Rite Aid had been paying before.

就 Rite Aid 而言，正如最近報導的那樣，他們現在正作為一家私人公司在新的領導層的帶領下向前發展。對於我們投資組合中的 11 家 Rite Aid 商店，所有 11 家店的租約均平均延長了五年，維持了先前的基本租金。作為延長租約的一部分，我們提供了一些額外的 TI，用於重新定位舉措，這反映在我們的第三季租賃統計表中。就我們重新奪回的四家 Rite Aid 商店而言，我們簽下的取代 Rite Aid 的新租戶已經開始實施各自的擴建計劃，這些新租戶的租金平均比 Rite Aid 高出 20% 以上。支付了。

Lastly, we continue to have good success with getting new tenants open and operating. At the beginning of 2024, newly signed tenants representing about $7 million of incremental base rent on a cash basis had not yet opened their businesses and commenced paying rent. Of that $7 million, year to date, approximately $4.6 million of that are now open and paying rent, including $1.4 million that opened during the third quarter.

最後，我們在新租戶開業和營運方面繼續取得良好成功。2024 年初，代表約 700 萬美元現金基礎增量基本租金的新簽約租戶尚未開業並開始支付租金。今年迄今為止，這 700 萬美元中，約有 460 萬美元已開放並支付租金，其中包括第三季開放的 140 萬美元。

And while $4.6 million of incremental rent has opened, given our strong leasing activity, new leases that we have signed year to date have added $5.9 million of additional incremental rent, including $2.4 million from new leases that we have signed during the third quarter. Taking all of this activity into account, as of September 30, total incremental rent from new leases that haven't yet commenced stood at approximately $8.2 million.

雖然已經開始增加460 萬美元的租金增量，但鑑於我們強勁的租賃活動，我們今年迄今簽署的新租約增加了590 萬美元的額外租金增量，其中包括我們在第三季度簽署的新租約的240 萬美元。考慮到所有這些活動，截至 9 月 30 日，尚未開始的新租賃的總增量租金約為 820 萬美元。

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

現在我將把電話轉回史都華。

Thanks, Rich. As we move forward, wrapping up 2024, we expect to have an active and productive fourth quarter. On the leasing front, we are on track thus far to have another successful quarter. We are steadily moving towards completing the anchor re-leasing initiative that we commenced earlier in the year, the largest being the re-leasing of the Kohl's space at Fallbrook. Once the re-leasing is complete, we expect that our anchor space will again be at 100% leased as it has been for the previous seven years in a row, and we expect that will bring our overall portfolio lease to up -- lease rate to around 98% again.

謝謝，里奇。隨著 2024 年的結束，我們預計第四季將是一個活躍且富有成效的季度。在租賃方面，到目前為止，我們有望再創一個成功的季度。我們正在穩步推進今年早些時候開始的主力重新租賃計劃，其中最大的一項是重新租賃位於 Fallbrook 的 Kohl's 空間。一旦重新租賃完成，我們預計我們的主力空間將再次達到 100% 的出租率，就像之前連續七年一樣，我們預計這將使我們的整體投資組合租賃率上升 - 租賃率再次達到 98% 左右。

Additionally, we expect that our anchor re-leasing initiative will add over $2 million of additional incremental long-term annual revenue. Looking ahead in 2025, as Rich commented, we currently expect all of our anchor leases that are scheduled to mature next year will renew. Several of those have no further renewal options and are notably below market. In addition to leasing, as Mike noted, we will be refinancing the $250 million of maturing bonds which we expect to do in the coming weeks.

此外，我們預計我們的主力轉租計畫將為長期年收入增加超過 200 萬美元。展望 2025 年，正如 Rich 所評論的那樣，我們目前預計所有計劃於明年到期的主力租賃都將續簽。其中一些沒有進一步的續訂選項，並且明顯低於市場價格。正如麥克所指出的，除了租賃之外，我們還將為 2.5 億美元的到期債券進行再融資，預計將在未來幾週內進行。

Lastly, as I touched on earlier, we are currently looking at several interesting opportunities to continue advancing our investment capital recycling initiatives. From our perspective, selling certain fully valued properties with limited growth going forward, while at the same time, acquiring through off-market sources, irreplaceable assets like our recent acquisition, no doubt enhances the long-term strength and appeal of our overall portfolio, as well as our ability to continue growing cash flow and building value well into the future.

最後，正如我之前提到的，我們目前正在尋找幾個有趣的機會來繼續推動我們的投資資本回收計劃。從我們的角度來看，出售某些未來成長有限的完全估值的房產，同時透過場外來源收購不可替代的資產（例如我們最近收購的資產），無疑會增強我們整體投資組合的長期實力和吸引力，以及我們繼續增加現金流和為未來創造價值的能力。

Before taking questions, as I stated at the beginning of the call, as a matter of company policy, we do not comment on market rumors or speculation. We ask that you please refrain from questions along those lines.

在回答問題之前，正如我在電話會議開始時所說的那樣，根據公司政策，我們不會對市場謠言或猜測發表評論。我們請求您不要提出此類問題。

With that, operator, please open up the call for your questions.

接線員，請撥打電話詢問您的問題。

(Operator Instructions) Dori Kesten, Wells Fargo Securities.

（操作員指示）Dori Kesten，富國銀行證券。

Good morning, Dori.

早安，多麗。

Good morning. You mentioned refinancing your bonds in the next few weeks. Do you still expect to include the term loan with that? And then just on pricing, I think you previously mentioned expect like in the high 5s. Is that still appropriate?

早安.您提到在未來幾週內對債券進行再融資。您還希望將定期貸款包含在內嗎？然後就定價而言，我想您之前提到期望在高 5 秒內。那還合適嗎？

Yeah. Hi Dori, it's Mike. Yeah, we do -- we expect to include the term loan as part of the whole refinancing initiative on the bonds. That's our goal. And the tenure is bouncing around a little bit, but we expect to price somewhere probably in the mid 5.5% range.

是的。嗨，多麗，我是麥克。是的，我們確實這樣做——我們希望將定期貸款納入整個債券再融資計劃的一部分。這就是我們的目標。任期略有波動，但我們預計定價可能在 5.5% 的中間範圍內。

Okay. And then you talked about your same-store NOI returning to a 3% to 4% growth rate. Would you call that a '26 expectation just taking into account store openings in mid-'25, which I would assume would put your '25 growth closer to the, I don't know, 2%, 2.5% range?

好的。然後你談到同店NOI恢復到3%到4%的成長率。您是否會稱其為“26 年預期”，僅考慮到“25 年中期開店”，我認為這將使您的“25 年增長”更接近（我不知道）2%、2.5% 的範圍？

That's -- I don't know if it's necessarily the '26 event. I would expect '25 to be notably higher than this year simply because some of those anchors are going to be in paying earlier in the year, as I expect. Stuart, I don't know if you can comment on that. But I would expect '25 to be obviously be higher than '24. We're just coming off of a high measured from last year. So '25 versus '24 should be returning to normal.

那是——我不知道這是否一定是 26 年的活動。我預計 25 年的收入將明顯高於今年，因為正如我預期的那樣，其中一些主播將在今年早些時候付款。斯圖爾特，我不知道你是否可以對此發表評論。但我預計 '25 會明顯高於 '24。我們剛剛擺脫去年的高點。所以 25 年和 24 年應該會恢復正常。

Okay. Thank you very much.

好的。非常感謝。

Juan Sanabria, BMO Capital Markets.

Juan Sanabria，BMO 資本市場。

Good morning, Juan.

早安，胡安。

Good morning. Maybe just as a first question, just curious on what drove the higher G&A expected outlays for the year.

早安.也許只是作為第一個問題，只是好奇是什麼推動了今年的一般管理費用預期支出更高。

It's basically -- well, it's comp related, the performance-based shares based on when you think the measurements you're going to achieve, you have to adjust that every quarter based on expectations. And this quarter, we had to adjust that up a little bit.

它基本上是——嗯，它與薪酬相關，基於績效的份額是基於當你認為你將要實現的衡量標準時，你必須根據預期每個季度進行調整。本季，我們必須稍微調整一下。

Okay. And then just on the transactions market. You talked a little bit about some of the cap rates for the most recent transactions. But hoping you could give us a sense of where the assets that you may sell and buy in the fourth quarter or early into '25 are being valued. Or if you could comment in general on where you see asset values from a cap rate perspective in your --

好的。然後就在交易市場。您談到了最近交易的一些上限利率。但希望您能讓我們了解您在第四季或 25 年初可能出售和購買的資產的估值。或者，如果您可以從資本化率的角度總體評論您在哪些方面看到資產價值--

Sure. Yeah. I mean, look, I think as we all know, the acquisition market has ebbed and flowed as it relates to the tenure. We saw some pickup in activity over the last quarter, cap rates dropping 25, 50 basis points. Now that the tenure has moved up a bit, I'm expecting the market potentially to slow down a touch but continue with the momentum that we saw over the last quarter in terms of more activity.

當然。是的。我的意思是，看，我認為眾所周知，收購市場隨著任期的變化而起伏不定。我們看到上個季度的活動有所回升，上限利率下降了 25 至 50 個基點。現在任期已經上升了一點，我預計市場可能會放緩一些，但會繼續保持我們在上個季度看到的更多活動的勢頭。

From a cap rate perspective, you're looking on the West Coast for high-quality grocery-anchored assets. What we see -- what's training more recently would be in the high 5s, low 6s. So we continue to hope that we can sell assets as we've done over the last several quarters. And again, in that high 5, low 6 range and continue to buy off-market transactions at 6 or higher towards that mid-6 range, so that we're churning the capital as you would say accretively.

從資本化率的角度來看，您正在西海岸尋找高品質的雜貨固定資產。我們看到的－最近的訓練內容是高 5 分，低 6 分。因此，我們仍然希望能夠像過去幾季那樣出售資產。再一次，在高 5、低 6 的範圍內，繼續以 6 或更高的價格買入場外交易，接近中 6 的範圍，這樣我們就會像你所說的那樣，不斷地攪動資本。

Thank you very much.

非常感謝。

Craig Mailman, Citi.

克雷格‧梅爾曼，花旗銀行。

Good morning, Craig.

早安，克雷格。

Hey, good morning, guys. Just on the acquisition market, I think more recently, when we were with you guys, you had mentioned some OP unit deals potentially coming back into the mix. Is that still on the table at all? Or should we just consider you guys need to sell kind of 50, 75 basis points inside to continue to buy on the capital recycling?

嘿，早上好，夥計們。就收購市場而言，我認為最近，當我們與你們在一起時，你們提到了一些可能會重新納入其中的 OP 部門交易。這仍然在桌面上嗎？或者我們應該考慮你們需要在內部賣出 50、75 個基點才能繼續購買資金回收？

Well, we continue to pursue on the acquisition front two things. Obviously, with the relationships we have on the West Coast, we continue to pursue OP transactions, as well as trade purchases. But as we look forward into the fourth quarter and into '25, we do think that we've identified more opportunities to buy assets. And as we continue to build the pipeline, we will continue to sell assets, so that is not having any impact in terms of raising any equity or our balance sheet.

好吧，我們繼續在收購方面追求兩件事。顯然，憑藉我們在西海岸的關係，我們將繼續進行原產地交易以及貿易採購。但當我們展望第四季和 25 年時，我們確實認為我們已經找到了更多購買資產的機會。隨著我們繼續建造管道，我們將繼續出售資產，因此這不會對籌集任何股本或資產負債表產生任何影響。

Okay. And then just on Fallbrook, any update on when that lease could be signed?

好的。然後就在福爾布魯克，有什麼關於何時可以簽署租約的最新消息嗎？

Sure. Yeah. We continue to work on finalizing the lease with the prospective tenant, which is a national longtime tenant of ours. We have -- our goal is to have this process completed and the lease executed before the end of the year.

當然。是的。我們將繼續努力與潛在租戶（我們的全國長期租戶）敲定租約。我們的目標是在年底前完成此流程並執行租賃。

Great. Thank you.

偉大的。謝謝。

Todd Thomas, KeyBanc Capital Markets.

托馬斯 (Todd Thomas)，KeyBanc 資本市場。

Good morning, Todd. (multiple speakers)

早安，陶德。（多個發言者）

Hi, thanks. Good morning. Stuart, I'm not asking about the speculation itself, but the stock reacted to that and has held at higher levels. It's up almost 16% on the year. And so whether your AFFO yield or implied cap rate, your cost of capital has improved quite a bit. You talked about seeing some potential acquisitions. I'm just curious when is the right time to perhaps be in the market to raise equity capital, maybe use the ATM to take advantage of your improved cost of capital and put some of that capital to work?

你好，謝謝。早安.斯圖爾特，我不是問投機本身，但股票對此做出了反應，並保持在較高水平。較去年同期成長近 16%。因此，無論您的 AFFO 收益率還是隱含資本化率，您的資本成本都得到了相當大的改善。您談到看到一些潛在的收購。我只是好奇什麼時候是進入市場籌集股本的合適時機，也許可以使用 ATM 來利用您改善的資本成本並將部分資本投入使用？

Yeah. I mean, look, the focus has been the balance sheet with debt coming due in terms of making sure that we continue to focus on those metrics as we move through the balance of the year and into early next year, Todd. So I don't think we're going to be looking to the equity markets in terms of raising capital. The focus now is really on turning our capital and focusing on keeping our balance sheet in check and more importantly, continuing to work on the metrics around going back to the market when the time is right to refinance the debt that's coming due.

是的。我的意思是，重點是資產負債表和即將到期的債務，以確保我們在今年餘下時間和明年初繼續關注這些指標，托德。因此，我認為我們不會尋求股票市場來籌集資金。現在的重點實際上是轉向我們的資本，並專注於控制我們的資產負債表，更重要的是，繼續研究在適當的時候重返市場的指標，為即將到期的債務進行再融資。

Okay. And Michael, was there any consideration to entering into new swap agreements or refinancing the $450 million of combined December and January maturities over the last several weeks? The yield curves bounce quite a bit off the bottom. Just curious on the decision to hold off and the timing around all of that.

好的。邁克爾，是否考慮過在過去幾週內簽訂新的掉期協議或為 12 月和 1 月合計到期的 4.5 億美元進行再融資？殖利率曲線從底部反彈了很多。只是對推遲的決定以及所有這一切的時間安排感到好奇。

Well, we allowed the loan swaps to mature in August kind of coincident with the expectation of timing of new refinancing. Obviously, the goal is to do both the 2024 and the term loan. And enter into a swap now, just kind of muddy that up a little bit because we're expecting -- the goal is to go back to the bond market in the near term. So it didn't make sense to do a swap currently.

好吧，我們允許貸款互換在八月到期，這與新的再融資時間的預期是一致的。顯然，目標是同時完成2024年貸款和定期貸款。現在進入互換，只是有點混亂，因為我們預計 - 目標是在短期內重返債券市場。所以目前進行交換沒有意義。

Okay. And just one more, if I could. So bad debt, you're at $1.6 million for the year. The $3 million for the full year in the revised guidance implies a considerable pickup in the fourth quarter. Is there anything that you're eyeing specifically that might hit in the last quarter of the year? We're almost through October. I'm just curious if you can comment on that in the general health of the tenant base today.

好的。如果可以的話，就再多一個吧。那麼壞賬，你今年的負債是 160 萬美元。修訂後的指導方針中全年的 300 萬美元意味著第四季度的大幅成長。您有什麼特別關注的事情可能會在今年最後一個季度發生嗎？我們已經快過十月了。我只是好奇您能否對今天租戶群的整體健康狀況發表評論。

I think the tenant base is pretty healthy. We're just being -- just continuing to be cautiously conservative on the bad debt guidance. Nothing in particular.

我認為租戶基礎相當健康。我們只是繼續對壞帳指示保持謹慎保守。沒什麼特別的。

Okay. All right. Thank you.

好的。好的。謝謝。

Nicholas Thillman of Baird.

貝爾德公司的尼古拉斯·希爾曼。

Good morning, Nick.

早安，尼克。

Hey -- this is actually Wes. Hey, good morning, everyone. Yeah. I guess this whole auto dial-in has picked up Nick for you. Okay, quick question for you on Fallbrook. You said you're looking to have a lease sign there. And when can you have that tenant opened? And are you still looking at a pretty big box split there?

嘿——這其實是韋斯。嘿，大家早安。是的。我想整個自動撥入已經為您接通了尼克。好的，關於福爾布魯克，我想問你一個簡單的問題。你說你想在那裡有一個租賃標誌。什麼時候可以讓那個租戶開業？您還在看著那裡有一個相當大的盒子嗎？

Yeah. There's still -- well, the box [need] to be split, but significant work needs to be done to the box to accommodate the needs of the tenant. And so we would expect that that would be completed next year and the tenant opening either very late next year or the first part of '26.

是的。嗯，盒子[需要]仍然需要拆分，但是需要對盒子進行大量工作才能滿足租戶的需求。因此，我們預計該項目將於明年完成，租戶將在明年晚些時候或 26 年上半年開業。

Okay. And then you have that comment about tenants are eyeing space before a tenant actually moves out. Would you look to increase your recaptures? And was that mainly an anchor comment?

好的。然後你會聽到這樣的評論：在租戶真正搬出去之前，他們正在尋找空間。您想增加重新捕捉的次數嗎？這主要是主播評論嗎？

No. I mean, we have -- there's other opportunities out there, some -- we recaptured a couple of pads at the end of last year, which we've released at significantly higher rents this year. And so there's opportunities sort of embedded throughout the portfolio. The timing of when you can access them, that depends. But we're eyeing opportunities throughout the portfolio in shop space and anchor.

不。我的意思是，我們還有其他機會，一些，我們在去年年底重新獲得了一些土地，今年我們以顯著更高的租金出售了這些土地。因此，整個投資組合中都蘊含著機會。您何時可以訪問它們取決於具體時間。但我們正在關注整個產品組合中商店空間和錨點的機會。

Okay. And then one final one on the balance sheet. With the long term, you'll start to rise, would you maybe pivot to a term loan?

好的。然後是資產負債表上的最後一項。從長遠來看，你會開始上漲，你會轉向定期貸款嗎？

We've given us some consideration that I'd have to talk to my banking group about the appetite on the bank side for term loans. I think that's come back a little bit lately. That's always one of the considerations for sure.

我們已經考慮到我必須與我的銀行團隊討論銀行方面對定期貸款的興趣。我想最近這種情況又回來了。這始終是考慮因素之一。

Okay. Thanks, everyone.

好的。謝謝大家。

Thank you.

謝謝。

Michael Mueller, JPMorgan.

邁克爾·穆勒，摩根大通。

Hey, good morning. Just curious, what exactly drove the FFO guidance reduction considering that there wasn't a change in the same-store NOI expectation and the other adjustments seem to kind of wash each other out?

嘿，早安。只是好奇，考慮到同店 NOI 預期沒有變化且其他調整似乎相互抵消，到底是什麼推動了 FFO 指引的下調？

Acquisitions.

收購。

Yeah. Well, hey, Mike. Aside from interest expense, the one main variable that's always a bit of a challenge in terms of gauging where actual results will shake out versus our budget as we head towards the year-end is property level NOI, which is driven in part by our leasing activity. So leasing is in line with our fourth-quarter budget. We would expect to end up in the middle of our range.

是的。嗯，嘿，麥克。除了利息支出之外，在衡量年底時實際結果與我們的預算之間的差異方面，一個主要變數始終是一個挑戰，那就是房地產層面的 NOI，這在一定程度上是由我們的租賃驅動的活動。因此，租賃符合我們第四季的預算。我們預計最終會處於我們範圍的中間。

Got it. Okay. And then just out of curious, like in terms of general question here. When you're looking at your renewal leasing, what portion of your renewal leasing, if we look either for the third quarter or year to date is tied to fixed renewals versus just kind of going straight to market?

知道了。好的。然後只是出於好奇，就像這裡的一般問題一樣。當您考慮續租租賃時，如果我們查看第三季或今年迄今的情況，續租租賃的哪一部分與固定續租有關，而不是直接進入市場？

Yeah. It's Rich. I don't have a specific number here in front of me, but it really varies from quarter to quarter based on the lease that's expiring. There's definitely several leases coming up, some anchor leases that don't have any options remaining. We will expect to get those leases up to market. But it's hard to give you a specific percentage because all the leases are varied.

是的。這是富有的。我面前沒有具體的數字，但根據即將到期的租約，每季的數字確實有所不同。肯定會有幾份租約即將到來，其中一些主力租約沒有任何剩餘選擇權。我們預計將這些租賃推向市場。但很難給你一個具體的百分比，因為所有的租約都是不同的。

Okay. Appreciate it. Thank you.

好的。欣賞它。謝謝。

Paulina Rojas Schmidt, Green Street.

寶琳娜·羅哈斯·施密特，格林街。

Good morning. What percentage of your assets would you say that fit this description of stable properties with limited growth ahead that you would be inclined to recycle?

早安.您認為您的資產中有多大比例符合這種對未來成長有限且傾向於回收的穩定財產的描述？

Well, it's tough to get -- I mean, from a percentage perspective, we've identified probably right now about five, six assets that would move to market sooner than later as it relates to the profile of its NOI growth. We still have a couple of assets that are on the table to sell that. We have had the opportunity to retenant more recently that aren't grocery anchored. Those are at the top of the list, and we were lucky enough.

嗯，這很難得到——我的意思是，從百分比的角度來看，我們現在可能已經確定了大約五、六種資產，這些資產遲早會進入市場，因為這與 NOI 成長相關。我們還有一些資產可以出售。最近，我們有機會重新租用非雜貨店的房源。這些都在清單的頂部，我們很幸運。

One of them was a Rite Aid that we leased to a national tenant. That should be coming online with the next three to four months. But that's the type of asset we're focused on now selling. So when -- as we come through the portfolio as we do often, probably five or six assets is probably what we're looking at as we look into 2025.

其中之一是我們租給全國租戶的 Rite Aid。這應該會在接下來的三到四個月內上線。但這就是我們現在重點出售的資產類型。因此，當我們像往常一樣審視投資組合時，我們在展望 2025 年時可能會關註五到六種資產。

That's helpful. And out of curiosity, can you share what retailers have taken the space formerly occupied by Rite Aid?

這很有幫助。出於好奇，您能否分享哪些零售商佔據了以前由 Rite Aid 佔據的空間？

The Rite Aid spaces, Paulina?

Rite Aid 空間，寶琳娜？

Yes. Correct.

是的。正確的。

Yeah. So we have -- Dollar Tree has taken a piece of one space. We have a swim school. We have a salon suites tenant, and we have a grocer and auto parts.

是的。所以我們——美元樹佔據了一塊空間。我們有一所游泳學校。我們有一個沙龍套房租戶，我們有一個雜貨店和汽車配件。

Okay. Very diverse. And my last question is some restaurants have been recently on the news showing weakness. And I know your concentration to restaurant is mainly in quick service. But how much would you say is local versus national credit?

好的。非常多樣化。我的最後一個問題是，一些餐廳最近在新聞中表現出疲軟。我知道您對餐廳的關注主要是快速服務。但你認為地方信用與國家信用相比有多少？

I don't have a specific number here in front of me or a percentage, but probably -- I don't know, Stuart, would you say [15%] is local credit for restaurants?

我面前沒有具體的數字或百分比，但可能 - 我不知道，斯圖爾特，你會說 [15%] 是餐館的當地信用嗎？

Yeah, about 15%, yeah. And sales continue to be quite strong, Paulina, on the West Coast as it relates to the whole category in terms of our portfolio.

是的，大約15%，是的。Paulina，西海岸的銷售仍然非常強勁，因為它與我們的產品組合的整個類別有關。

But as you touched on, we haven't had the exposure to the tenants that you're seeing in the headlines. In fact, most of them, we don't have any exposure to.

但正如您所提到的，我們還沒有像您在頭條新聞中看到的那樣接觸到租戶。事實上，其中大多數我們都沒有接觸過。

Correct. Okay. Thank you very much.

正確的。好的。非常感謝。

Thank you. And that concludes the Q&A session for today. I would like to turn the call over to Stuart for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。我想將電話轉給斯圖爾特，讓其致閉幕詞。請繼續。

In closing, thanks to all of you 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-Q.

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，您還可以在該公司的季度補充包中找到更多信息，該補充包發佈在我們的網站以及 10-Q 上。

Lastly, for those of you who are attending NAREIT Conference in Las Vegas in a few weeks, we look forward to seeing you there. Thanks again, and have a great day, everyone.

最後，對於幾週後將在拉斯維加斯參加 NAREIT 會議的人們，我們期待在那裡見到您。再次感謝，祝大家有美好的一天。

This concludes today's conference call. Thank you all for participating. You may now disconnect.

今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。