iStar Inc (STAR) 2022 Q4 法說會逐字稿

Good morning, and welcome to iStar's Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the conference over to Pearse Hoffmann. Senior Vice President of Capital Markets and Investor Relations. Please go ahead, sir.

早上好，歡迎參加 iStar 第四季和 2022 財年財報電話會議。 （操作員指示）提醒一下，今天的會議正在錄製中。現在，我想將會議交給皮爾斯霍夫曼（Pearse Hoffmann）進行開幕致詞和介紹。資本市場和投資者關係資深副總裁。請繼續，先生。

Good morning everyone, and thank you for joining us today to review iStar's fourth quarter and fiscal year 2022 earnings. With me today are Jay Sugarman, Chairman and Chief Executive Officer; Marcos Alvarado, President and Chief Investment Officer; and Brett Asnas, Chief Financial Officer. This morning, we published an earnings presentation highlighting our results and our call will refer to these slides, which can be found on our website at istar.com Investors section. There will be a replay of the call beginning at 2:00 p.m. Eastern Time today. The replay is accessible on our website or by dialing (877) 481-4010 with a confirmation code of 47582.

大家早安，感謝您今天加入我們回顧 iStar 第四季和 2022 財年的收益。今天與我在一起的有董事長兼執行長 Jay Sugarman；馬可斯‧阿爾瓦拉多 (Marcos Alvarado)，總裁兼首席投資長；和首席財務官布雷特·阿斯納斯 (Brett Asnas)。今天早上，我們發布了一份收益報告，重點介紹了我們的業績，我們的電話會議將參考這些幻燈片，這些幻燈片可以在我們的網站 istar.com 投資者部分找到。通話將於下午 2:00 開始重播。今天東部時間。您可以透過我們的網站或撥打 (877) 481-4010 並輸入確認碼 47582 來觀看重播。

Before I turn the call over to Jay, I'd like to remind everyone that statements in this earnings call, which are not historical facts, may be forward-looking. iStar's actual results may differ materially from these forward-looking statements, and the risk factors that could cause these differences are detailed in our SEC reports. iStar disclaims any intent or obligation to update these forward-looking statements except as expressly required by law.

在我將電話轉給傑伊之前，我想提醒大家，本次財報電話會議中的陳述並非歷史事實，可能具有前瞻性。 iStar 的實際結果可能與這些前瞻性陳述有重大差異，我們的 SEC 報告中詳細介紹了可能導致這些差異的風險因素。除法律明確要求外，iStar 不承擔任何更新這些前瞻性聲明的意圖或義務。

Now I'd like to turn the call over to iStar's Chairman and CEO, Jay Sugarman. Jay?

現在我想將電話轉給 iStar 董事長兼執行長 Jay Sugarman。傑伊？

Thanks, Pearse, and thanks to all of you for joining us today. 2022 was an important transition year for iStar, monetizing legacy assets and positioning Safehold to unlock its full potential have been the prime focus for some time now. And the merger announcement in August was the culmination of that strategy. Since that time, we've continued to make progress and working hard to reach the finish line, scheduling the vote for early next month and ideally closing by the end of the quarter.

謝謝皮爾斯，也謝謝大家今天加入我們。 2022 年對 iStar 來說是重要的過渡年，將遺留資產貨幣化和定位 Safehold 以釋放其全部潛力一直是一段時間以來的主要焦點。八月份的合併公告是這項策略的頂峰。從那時起，我們繼續取得進展並努力達到終點線，計劃在下個月初進行投票，最好在本季末結束。

Letting go of the past and embracing the future is always difficult, and we've had to make some tough decisions along the way, but the payoff should be well worth the effort. We remain convinced our modern ground lease structure has become a powerful new source of capital for the real estate industry, and we are pleased to have firmly established Safehold as the innovative leader of this important new asset class.

放下過去擁抱未來總是很困難的，我們一路上不得不做出一些艱難的決定，但回報應該是值得付出努力的。我們仍然堅信，我們的現代地面租賃結構已成為房地產行業強大的新資本來源，我們很高興將 Safehold 牢固確立為這一重要新資產類別的創新領導者。

With much of iStar's large holdings in Safehold being delivered to shareholders either or indirectly, the benefits of what we're building post-merger should accrue in large part to iStar shareholders over the [coming] years. Much hard work remains to realize the full promise of our Ground Lease strategy and to see its value fully reflected in our share price. But we have a very clear vision of how to unlock that value once we can put the current merger and market disruptions behind us.

由於 iStar 在 Safehold 中的大部分股份都已或間接交付給股東，我們在合併後所建造的專案的收益在未來幾年內將在很大程度上歸於 iStar 股東。要實現我們的地面租賃策略的全部承諾並使其價值充分體現在我們的股價中，還有很多艱苦的工作要做。但我們對如何釋放這一價值有著非常清晰的願景，一旦我們能夠將當前的合併和市場混亂拋在腦後。

Okay. Let's turn it over to Marcos and Brett to recap the quarter and the year. Marcos?

好的。讓我們將其交給 Marcos 和 Brett 來回顧一下本季和本年度的情況。馬科斯？

Thank you, Jay, and good morning, everyone. Let's begin on Slide 3 to discuss the quarter's highlights. We've made meaningful progress monetizing assets in the fourth quarter and through the early part of 2023, generating approximately $150 million in net proceeds. We currently estimate an additional $110 million of proceeds are required to reach our monetization target in connection with the merger.

謝謝傑伊，大家早安。讓我們從幻燈片 3 開始討論本季的亮點。從第四季到 2023 年初，我們在資產貨幣化方面取得了有意義的進展，淨收益約為 1.5 億美元。我們目前估計還需要 1.1 億美元的額外收益才能實現與合併相關的貨幣化目標。

As previously disclosed, we have agreed to repay our preferred stock and unsecured notes as part of the merger. Special meetings of the SAFE and STAR shareholders have been scheduled for March 9. Key remaining conditions to close are obtaining shareholder approvals, completing the SEC review and NASDAQ listing process for the spin-off and meeting our asset monetization goal. Based on where we sit today, we believe there is a potential pathway to an approximate March 31 closing date.

如同先前所揭露的，作為合併的一部分，我們已同意償還優先股和無擔保票據。 SAFE 和 STAR 股東特別會議定於 3 月 9 日舉行。根據我們今天的立場，我們相信有可能實現 3 月 31 日左右的截止日期。

Also on December 7, iStar returned approximately $192 million to shareholders in the form of a special dividend of 6.6 million Safehold shares.

同樣在 12 月 7 日，iStar 以 660 萬股 Safehold 股票的特別股利形式向股東返還約 1.92 億美元。

Safehold continues to scale its position as the leader of the modern ground lease industry, and 2022 was another strong year for the business. The company continued to grow its portfolio with high-quality investments supported by a strong balance sheet, and we expect that balance sheet to strengthen as Safehold has been put on positive outlook by both Moody's and Fitch over the last 6 months.

Safehold 繼續擴大其作為現代地面租賃行業領導者的地位，2022 年是該業務又一個強勁的一年。在強勁的資產負債表的支持下，該公司繼續透過高品質投資來擴大其投資組合，我們預計資產負債表將會加強，因為穆迪和惠譽在過去6 個月中都對Safehold 給予了積極的展望。

While the broader real estate markets have seen a slowdown and we expect near-term transaction volume to remain spotty, we believe SAFE is well positioned for the inevitable market rebound with ample liquidity to fund new ground lease investments as opportunities arise. As iStar's largest and most valuable asset, Safehold's success will ultimately accrue to the benefit of iStar's shareholders.

雖然更廣泛的房地產市場已經放緩，而且我們預計近期交易量仍不穩定，但我們相信，外管局已做好充分準備，迎接不可避免的市場反彈，並在機會出現時提供充足的流動性為新的土地租賃投資提供資金。作為 iStar 最大、最有價值的資產，Safehold 的成功最終將為 iStar 股東帶來利益。

Slide 4 details our earnings for the quarter and the year. For the fourth quarter, net income was a loss of $86.7 million or a loss of $1 per diluted common share. And adjusted earnings were a loss of $79.9 million or a loss of $0.92 per diluted common share. For the full year, net income was $397.8 million and earnings per share was $4.92. Adjusted earnings was $522 million or $6.25 per share.

投影片 4 詳細介紹了我們本季和本年度的收益。第四季淨利虧損 8,670 萬美元，即稀釋後普通股虧損 1 美元。調整後收益虧損 7,990 萬美元，攤薄後每股普通股虧損 0.92 美元。全年淨利為 3.978 億美元，每股收益為 4.92 美元。調整後收益為 5.22 億美元，即每股 6.25 美元。

Slide 5 is an overview of the business with a simplified presentation of our balance sheet. At the end of the fourth quarter, we had approximately $1.4 billion of unrestricted cash, a carrying value of Safehold stock, Ground Lease Plus and leasehold loan investments of $1.3 billion and $483 million of legacy and other noncore assets, getting to a total assets on the balance sheet of approximately $3.3 billion.

投影片 5 是業務概述，並簡要介紹了我們的資產負債表。截至第四季末，我們擁有約 14 億美元的非限制性現金、13 億美元的 Safehold 股票帳面價值、Ground Lease Plus 和租賃貸款投資以及 4.83 億美元的遺留資產和其他非核心資產，總資產為資產負債表約33億美元。

On the right side of the balance sheet, we had $1.7 billion of remaining debt, $305 million of preferred equity and $162 million of other liabilities and noncontrolling interests, including the accrued balance of iPIP, leaving us with common equity of approximately $1.1 billion.

在資產負債表的右側，我們有17 億美元的剩餘債務、3.05 億美元的優先股以及1.62 億美元的其他負債和非控制權益，包括iPIP 的應計餘額，剩下的普通股約為11億美元。

When adjusting for SAFE's mark-to-market value and our estimate of the incremental unaccrued iPIP amounts, our common equity is $909 million or $10.48 per share. The decrease in this balance from last quarter is primarily due to the special dividend of 6.6 million SAFE shares distributed to STAR shareholders on December 7. At the time of the special dividend, SAFE was trading at $28.95 versus a $32.11 as of close last Friday. Additionally, we provided a sensitivity analysis on the adjusted common equity value per share should SAFE stock go up or down by $10.

根據 SAFE 的按市值計算的價值和我們對增量未提列 iPIP 金額的估計進行調整後，我們的普通股權益為 9.09 億美元，即每股 10.48 美元。這筆餘額較上季減少的主要原因是12 月7 日向STAR 股東派發了660 萬股SAFE 股票的特別股息。交易價格為32.11 美元。此外，如果 SAFE 股票上漲或下跌 10 美元，我們也對調整後的每股普通股價值進行了敏感度分析。

And with that, let me turn it over to Brett to go through the portfolio in more detail. Brett?

接下來，讓我把它交給布雷特，讓他更詳細地瀏覽這個作品集。布雷特？

Thank you, Marcos, and good morning, everyone. Let's walk through our portfolio's business lines, beginning with Safehold on Slide 6. During the fourth quarter, Safehold originated three new ground leases for $79 million and for the full year, Safehold originated 26 new ground leases for $1.4 billion. These new originations are well diversified by property type and location and included ground leases in 15 unique markets, including 4 institutional life science assets in markets such as Boston and the Bay Area and 15 multifamily assets in markets, including New York, Los Angeles, Nashville, Denver and Miami.

謝謝你，馬科斯，大家早安。讓我們從投影片6 上的Safehold 開始介紹我們投資組合的業務線。 ，價值14 億美元。這些新項目在物業類型和地點方面非常多樣化，包括15 個獨特市場的地面租賃，其中包括波士頓和灣區等市場的4 個機構生命科學資產以及紐約、洛杉磯、納許維爾等市場的15 個多戶型資產、丹佛和邁阿密。

Unrealized capital appreciation, or the estimated value of the building sitting above SAFE's ground lease basis, increased year-over-year by $2.4 billion and currently stands at $10.5 billion for the portfolio. Safehold's balance sheet and liquidity profile remained strong. And subsequent to quarter end, Safehold closed an additional $500 million unsecured revolving credit facility, increasing the company's total unsecured credit lines to $1.85 billion. Including the new revolver, Safehold ended the quarter with approximately $1.2 billion of liquidity.

未實現的資本增值，即高於國家外匯管理局地面租賃基礎的建築物的估計價值，比去年同期增加了 24 億美元，目前投資組合為 105 億美元。 Safehold 的資產負債表和流動性狀況仍然強勁。季度末後，Safehold 額外關閉了 5 億美元的無擔保循環信貸額度，將公司的無擔保信貸額度總額增加至 18.5 億美元。包括新的左輪手槍在內，Safehold 在本季結束時擁有約 12 億美元的流動性。

While Safehold's financial performance, portfolio metrics and balance sheet have all been positive, the unfavorable market backdrop and interest rate volatility have been a negative for the stock, which you can see reflected in the mark-to-market carrying value. We do not believe current prices properly capture Safehold sum of the parts value proposition and are optimistic for what the future holds as the merger concludes and markets stabilize.

雖然 Safehold 的財務表現、投資組合指標和資產負債表都是正面的，但不利的市場背景和利率波動對該股產生了負面影響，這反映在按市值計價的帳面價值中。我們認為目前的價格並不能正確反映各零件價值主張的安全總和，並且對隨著合併結束和市場穩定而對未來持樂觀態度。

On Slide 7, we detail our investments in the ground lease ecosystem. As we previously discussed, iStar has two separate funds that enable us to pursue additional ground lease opportunities in the broader ground lease ecosystem. One provides predevelopment ground leases and the other provides leasehold loans that are combined with a core Safehold ground lease. The net carrying value for the seven investments in these funds is $91 million with targeted returns between 9% and 12%. There are approximately $147 million of unfunded commitments associated with these ground lease-related investments.

在投影片 7 中，我們詳細介紹了我們在地面租賃生態系統中的投資。正如我們之前討論的，iStar 擁有兩個獨立的基金，使我們能夠在更廣泛的土地租賃生態系統中尋求更多的土地租賃機會。一種提供開發前土地租賃，另一種提供與核心安全土地租賃相結合的租賃貸款。這些基金的七項投資的帳面淨值為 9,100 萬美元，目標回報率在 9% 至 12% 之間。這些與土地租賃相關的投資涉及約 1.47 億美元的無資金承諾。

Slide 8 highlights the remaining non-ground lease assets, including sales progress during the fourth quarter plus first quarter to date. In the real estate finance portfolio, we received $69 million of repayments during the quarter. There are four loans remaining in this portfolio with a carrying value of $86 million, a 51% decrease from last quarter.

投影片 8 重點介紹了剩餘的非地面租賃資產，包括第四季和第一季迄今的銷售進度。在房地產金融投資組合中，我們在本季收到了 6,900 萬美元的還款。該投資組合中尚有四筆貸款，帳面價值為 8,600 萬美元，較上季下降 51%。

In the real estate and strategic asset portfolios, we received $60 million of proceeds and distributions from asset sales during the quarter, which generated net gains of $15 million. At quarter end, real estate and strategic assets totaled $345 million of carrying value, of which as Asbury Park and Magnolia Green, represented $269 million or 78%. The nine short-term assets totaled $76 million.

在房地產和戰略資產投資組合中，本季我們從資產出售中獲得了 6,000 萬美元的收益和分配，產生了 1,500 萬美元的淨收益。截至季末，房地產和戰略資產的帳面價值總計為 3.45 億美元，其中 Asbury Park 和 Magnolia Green 的帳面價值為 2.69 億美元，即 78%。這九項短期資產總計 7,600 萬美元。

Subsequent to quarter end, we received an additional $21 million of proceeds from continued real estate and strategic asset sales, which included the sale of one property for $17 million of proceeds and regular [way lot] sales in our land portfolio for $4 million. At this juncture, we estimate that approximately $110 million of additional proceeds are needed to reach our monetization target. As previously disclosed, we have agreed to repay our preferred stock and unsecured notes in connection with the merger.

季度末後，我們從持續的房地產和戰略資產銷售中獲得了2100 萬美元的額外收益，其中包括以1700 萬美元的收益出售一處房產，以及以400 萬美元的價格定期出售我們的土地組合中的收益。目前，我們估計需要約 1.1 億美元的額外收益才能實現我們的貨幣化目標。如同先前所揭露的，我們已同意償還與合併有關的優先股和無擔保票據。

Slide 9 shows an overview of our corporate debt, which remains largely static from last quarter. At quarter end, there was approximately $1.7 billion of total debt outstanding with a weighted average maturity of 2.9 years.

幻燈片 9 顯示了我們的公司債務概覽，該債務與上季度相比基本保持不變。截至季末，未償債務總額約為 17 億美元，加權平均期限為 2.9 年。

In conclusion, we continue to make significant progress towards finalizing the business combination with Safehold and look forward to the benefits of the transformation of our business.

總之，我們在完成與 Safehold 的業務合併方面繼續取得重大進展，並期待我們業務轉型的好處。

And with that, let me turn it back to Jay.

說到這裡，讓我把話題轉回傑伊身上。

Thanks, Brett. I've been asked in the past how to best summarize what we're doing at Safehold and how large the ground lease opportunity is. And the answer is as simple as it is powerful. We are providing a lower cost and lower risk way for commercial property owners and developers to capitalize their properties, and we're providing a faster growing and more valuable way for investors to participate in an asset class that has historically proven to be the source of great wealth. As a result, we think the potential opportunity ahead of us is very large, very exciting and very achievable.

謝謝，布雷特。過去有人問我如何最好地總結我們在 Safehold 所做的事情以及土地租賃機會有多大。答案既簡單又強大。我們為商業房地產所有者和開發商提供一種成本更低、風險更低的方式來將他們的財產資本化，我們為投資者提供一種增長更快、更有價值的方式來參與歷史上被證明是商業價值來源的資產類別。因此，我們認為擺在我們面前的潛在機會非常大、非常令人興奮並且非常可實現。

And on that note, operator, let's open it up for questions.

關於這一點，操作員，讓我們開始提問。

(Operator Instructions) Your first question is coming from Stephen Laws of Raymond James.

（操作員說明）您的第一個問題來自 Raymond James 的 Stephen Laws。

First one, to touch on the remaining asset sales, I think it was $110 million you mentioned in the remarks. And will that come from the loan book and I guess, strategic legacy assets? Kind of where will we see that? And then to tie that in, the impairment and reserve build during the fourth quarter, can you talk about those? And is that to mark a reserve assets, kind of where you anticipate selling those in the next 6 or 8 weeks?

第一個，關於剩餘的資產出售，我認為是你在評論中提到的1.1億美元。這將來自貸款簿，我猜是戰略遺留資產？我們會在哪裡看到它？然後將其與第四季度的減值和準備金建立聯繫起來，您能談談這些嗎？這是為了標記儲備資產，您預計在未來 6 或 8 週內出售這些資產嗎？

Yes. We've got a handful of assets. We're getting to the finish line. We've had some gains on some. We'll probably take some marks as we showed in the fourth quarter to get rid of some of the other ones. But we're tracking nicely to get to the finish line, and there'll be a little bit of a flux, or I can't predict exactly which assets, but we feel pretty confident we've got a handle on which ones are in the market, which ones are under contract, which ones are going to get repaid. So we feel like no matter what happens, we should be able to figure it out here pretty shortly.

是的。我們有一些資產。我們即將到達終點線。我們在一些方面取得了一些進展。我們可能會像第四季一樣取得一些成績，以消除其他一些成績。但我們正在很好地追蹤以到達終點線，並且會有一點變化，或者我無法準確預測哪些資產，但我們非常有信心我們已經掌握了哪些資產在市場上，哪些是有合約的，哪些是要償還的。所以我們覺得無論發生什麼，我們應該很快就能解決這個問題。

Great. And then I know to closing here. What transaction-related expenses will be incurred at STAR? I know we talked last week about the SAFE side of things. Curious about any transaction-related expenses we should run to think about in our numbers.

偉大的。然後我知道要在這裡結束。 STAR 會產生哪些交易相關費用？我知道我們上週討論了安全方面的問題。對任何與交易相關的費用感到好奇，我們應該在我們的數字中考慮一下。

Sure. Yes. I think what we've accrued to date in '22 is roughly $10 million. I think going forward, everything related to advisers, legal, accounting, tax structuring will all be accounted for at merger closing. And obviously, there's cost to repay our liabilities, so we can work through a precise number as Jay alluded to.

當然。是的。我認為我們在 22 年迄今已經累積了大約 1000 萬美元。我認為，展望未來，與顧問、法律、會計、稅務結構相關的一切都將在合併完成時被考慮。顯然，償還債務是有成本的，所以我們可以像傑伊提到的那樣計算出一個精確的數字。

On the gains and losses, there's lots of expenses and there's lots of changes in proceeds for different asset sales. And just to give you some context to that earlier question, we booked over $30 million of gains to date since the merger announcement on those sales. So we'll have to see.

在損益方面，不同的資產出售有大量的費用和收益的變化。為了給您提供有關之前問題的一些背景信息，自這些銷售的合併公告以來，我們迄今為止已預訂了超過 3000 萬美元的收益。所以我們得看看。

I think, overall net, net-net, as Jay mentioned, some winners and some other assets where we need to consider that will -- all the expenses will be flushed out and hopefully, it will be a net wash.

我認為，總體而言，淨淨額，正如傑伊所提到的，一些贏家和我們需要考慮的其他一些資​​產將 - 所有費用都將被沖掉，希望這將是淨洗。

Your next question is coming from Jade Rahmani from KBW.

您的下一個問題來自 KBW 的 Jade Rahmani。

Given iStar's historical length of experience through real estate cycles, I wanted to ask what are your expectations regarding magnitude of any credit downturn in the market this cycle? And do you expect that kind of business to generate outsized investment opportunities for new SAFE? Is that channel going to be a meaningful source of investment activity, do you think or not really?

鑑於 iStar 在房地產週期方面的歷史經驗，我想問一下您對本週期市場信貸下滑的程度有何預期？您是否預期此類業務將為新外管局帶來巨大的投資機會？您認為該管道是否會成為有意義的投資活動來源？

Jade, I'll let Marcos weigh in on some of the opportunities we expect to see. But you asked a great question, which is we've been through many, many cycles. The one thing we always see is a little bit of a creative destruction process. Higher rates, obviously, are not good for real estate overall, just in terms of overall values, but they tend to choke off supply, which then creates the conditions for rebound.

傑德，我會讓馬可斯權衡我們期望看到的一些機會。但你問了一個很好的問題，那就是我們已經經歷了很多很多的周期。我們經常看到的一件事是一點創意破壞的過程。顯然，就整體價值而言，較高的利率對房地產整體不利，但它們往往會抑制供應，從而為反彈創造條件。

This could take some time. There's some stress in the market, as you can probably tell, particularly on some of the asset classes, like office and retail that, that transition is going to take quite a bit of time and quite a bit of effort. But what we've seen over longer periods of time is higher rates, tough market conditions do start to create the foundation for a rebound in the future. And that generally has been a great place to deploy capital. So I'll let Marcos walk through how we're thinking about that.

這可能需要一些時間。正如您可能知道的那樣，市場存在一些壓力，特別是在某些資產類別上，例如辦公大樓和零售業，這種轉變將需要相當多的時間和相當多的努力。但我們在較長一段時間內看到的是利率上升，嚴峻的市場條件確實開始為未來的反彈奠定基礎。這通常是部署資本的好地方。因此，我將讓馬科斯介紹我們是如何考慮這個問題的。

Jade. So again, to echo what Jay just said, it's been an interesting sort of arc to the end of the last year, it was a liquidity desert. There wasn't a lot of opportunity. We're starting to see some greenshoots in our core business at SAFE. So people are engaged. We're seeing new transactions. But as we've alluded to on both the SAFE and the STAR calls in the short term, we think transaction volume is going to be somewhat muted. But we remain optimistic that the second half of the year, we'll be able to deploy capital as buyers and sellers sort of come to this equilibrium impasse that they're at today.

玉。所以，再次呼應傑伊剛才所說的，到去年年底，這是一個有趣的弧線，這是一個流動性沙漠。機會並不多。我們在 SAFE 的核心業務中開始看到一些新芽。所以人們都參與其中。我們看到了新的交易。但正如我們在短期內對 SAFE 和 STAR 呼籲所提到的那樣，我們認為交易量將有所減弱。但我們仍然樂觀地認為，今年下半年，隨著買家和賣家進入目前所處的平衡僵局，我們將能夠部署資本。

And do you think that recapitalization of deals that have trouble will be a meaningful pool to play in? And in terms of the fund business that you're launching, is that an area in which to raise capital?

您認為對遇到麻煩的交易進行資本重組會是有意義的池子嗎？就您正在推出的基金業務而言，這是一個籌集資金的領域嗎？

Yes. I think in the short term, Jade, a lot of the things that we're seeing in our pipeline are these sort of "recap distressed opportunities assets" that may have been slightly over levered, but there's still an agreement on value. So think about the multifamily side on one asset -- on side of the spectrum. I think on the office side, as Jay alluded to, there's probably a longer-term sort of creative destruction going on, and we haven't seen that sort of foot out.

是的。我認為，從短期來看，傑德，我們在管道中看到的很多東西都是這類“回顧不良機會資產”，這些資產的槓桿率可能略有過高，但在價值上仍然達成了一致。因此，請考慮一項資產的多戶家庭方面——在範圍的一側。我認為在辦公室方面，正如傑伊所提到的，可能正在發生一種長期的創造性破壞，但我們還沒有看到這種情況的發生。

And then as it relates to our fund management business, that ultimately will sit at SAFE. Yes, we're excited about launching that post the merger and taking advantage of the opportunity. But again, I think we're going to be primarily focused on the core business, which is exiting ground leases.

然後，由於它與我們的基金管理業務相關，最終將由國家外匯管理局負責。是的，我們很高興能夠在合併後啟動並利用這個機會。但我再次強調，我們將主要專注於核心業務，即退出地面租賃。

Are there any potential changes you envision happening with respect to the merger perhaps related to iStar's capital structure or some other dynamics? Or is your baseline expectation that will just close as originally structured?

您預計合併中是否會發生任何可能與 iStar 的資本結構或其他動態相關的潛在變化？或者您的基準預期是否會按照最初的結構結束？

Yes, nothing material, Jade. We're getting to the short strokes here. So we'll move a few things around if we need to, just to get this done as soon as possible. It has been a major distraction for the firm. And so, we'd like to get back to business and get out of sort of the merger restrictions we've been living under for 6, 7, 8 months now. So everything feels like it's tracking within all the guardrails we set up.

是的，沒有什麼實質內容，傑德。我們在這裡進行短劃。因此，如果需要的話，我們會進行一些調整，以盡快完成這項工作。這一直是該公司的主要幹擾因素。因此，我們希望回到正軌，擺脫我們已經生活了 6、7、8 個月的合併限制。所以一切感覺都在我們設置的所有護欄內進行。

(Operator Instructions) Mr. Hoffmann, we have no further questions.

（操作員指示）霍夫曼先生，我們沒有其他問題了。

Thank you. If you should have any additional questions on today's release, please feel free to contact me directly. Jenny, would you mind giving the conference replay instructions once again? Thanks.

謝謝。如果您對今天的發布還有任何其他問題，請隨時直接與我聯繫。珍妮，您介意再次給予會議重播指示嗎？謝謝。

Of course. There will be a replay of the call beginning at 2:00 p.m. Eastern Time today. The replay is accessible on our website or by dialing (877) 481-4010 with a confirmation code of 47582. Thank you, everyone. This does conclude today's conference call. You may disconnect your lines, and have a wonderful day. Thank you for your participation.

當然。通話將於下午 2:00 開始重播。今天東部時間。您可以在我們的網站上觀看重播，也可以撥打 (877) 481-4010 並輸入確認碼 47582。今天的電話會議到此結束。您可以斷開線路，度過美好的一天。感謝您的參與。