Urban Edge Properties (UE) 2024 Q3 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to the Urban Edge Properties third quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們、先生們，早安，歡迎參加 Urban Edge Properties 2024 年第三季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Areeba Ahmed, Investor Relations Associate. Please go ahead.

現在我很高興向您介紹主持人，投資者關係助理阿瑞巴·艾哈邁德 (Areeba Ahmed)。請繼續。

Good morning, and welcome to Urban Edge Properties third quarter 2024 earnings conference call. Joining me today are Jeff Olson, Chairman and Chief Executive Officer; Jeff Mooallem, Chief Operating Officer; Mark Langer, Chief Financial Officer; Rob Milton, General Counsel; Scott Auster, EVP and Head of Leasing; and Andrea Drazin, Chief Accounting Officer.

早上好，歡迎參加 Urban Edge Properties 2024 年第三季財報電話會議。今天與我一起出席的有董事長兼執行長 Jeff Olson； Jeff Mooallem，營運長；馬克‧蘭格，財務長；羅布·米爾頓，總法律顧問； Scott Auster，執行副總裁兼租賃主管；和首席會計官 Andrea Drazin。

Please note, today's discussion may contain forward-looking statements about the company's views of future events and financial performance, which are subject to numerous assumptions, risks, and uncertainties and which the company does not undertake to update. Our actual results, financial condition and business may differ. Please refer to our filings with the SEC, which are also available on our website for more information about the company.

請注意，今天的討論可能包含有關公司對未來事件和財務業績的看法的前瞻性陳述，這些陳述受到眾多假設、風險和不確定性的影響，並且公司不承諾更新這些陳述。我們的實際結果、財務狀況和業務可能有所不同。請參閱我們向 SEC 提交的文件，這些文件也可以在我們的網站上獲取有關該公司的更多資訊。

In our discussion today, we will refer to certain non-GAAP financial measures, including reference to our 2025 FFO as adjusted target. Reconciliations of these measures to GAAP results are available in our earnings release, supplemental disclosure package and our April 2023 investor presentation in the Investors section of our website.

在今天的討論中，我們將提及某些非 GAAP 財務指標，包括 2025 年 FFO 作為調整後的目標。這些指標與 GAAP 結果的對照組可在我們的收益發布、補充揭露包以及我們網站投資者部分的 2023 年 4 月投資者介紹中找到。

At this time, it is my pleasure to introduce our Chairman and Chief Executive Officer, Jeff Olson.

此時此刻，我很高興向您介紹我們的董事長兼執行長 Jeff Olson。

Great. Thank you, Areeba, and good morning, everyone. We had another great quarter, generating 9% FFO per share growth as compared to the third quarter of last year and 7% growth year-to-date. Our growth was driven by a 5.1% increase in same-property net operating income and accretion from our capital recycling activity.

偉大的。謝謝你，Areeba，大家早安。我們又度過了一個出色的季度，與去年第三季度相比，每股 FFO 成長了 9%，今年迄今成長了 7%。我們的成長是由同物業淨營業收入成長 5.1% 以及資本回收活動帶來的成長所推動的。

Over the past year, we have acquired $552 million of high-quality shopping centers at a 7% cap rate, mostly funded through $425 million of dispositions of noncore and single-tenant assets at a 5% cap rate. Yesterday, we acquired The Village at Waugh Chapel, a 382000-square-foot grocery-anchored shopping center located in Anne Arundel County, Maryland, for $126 million at a cap rate of 6.6% in an off-market transaction.

過去一年，我們以 7% 的資本化率收購了 5.52 億美元的優質購物中心，其中大部分資金是透過以 5% 的資本化率處置 4.25 億美元的非核心和單一租戶資產獲得的。昨天，我們在場外交易中以 1.26 億美元的價格收購了位於馬裡蘭州安妮阿倫德爾縣的 The Village at Waugh Chapel，這是一個佔地 382000 平方英尺的雜貨店購物中心，上限利率為 6.6%。

The acquisition included the assumption of a $60 million mortgage with a significantly below market rate of 3.76% with approximately seven years of term remaining, resulting in an expected first year leverage return of 9%. We expect NOI should grow by approximately 3% a year over the next 10 years. The property is anchored by Safeway, Marshalls, HomeGoods, T.J. Maxx, and a good mix of shop users, including Chick-fil-A, Chipotle, and Sephora.

此次收購包括假設提供 6,000 萬美元的抵押貸款，利率遠低於 3.76% 的市場利率，剩餘期限約為 7 年，預計第一年槓桿回報率為 9%。我們預計未來 10 年 NOI 每年將成長約 3%。該物業由 Safeway、Marshalls、HomeGoods、T.J. Maxx 以及眾多商店用戶，包括 Chick-fil-A、Chipotle 和 Sephora。

The center attracts 6 million visitors a year, ranking in the 96 percentile of all shopping centers in Maryland. The acquisition was funded in part with proceeds from selling a freestanding Home Depot in Union, New Jersey for $71 million at a cap rate of 5.35%, which also closed yesterday. Home Depot's rent is flat for the next 14 years and contains another 50 years of term through options with minimal growth.

該中心每年吸引 600 萬遊客，在馬裡蘭州所有購物中心中排名第 96 位。此次收購的部分資金來自於以 7,100 萬美元的價格出售位於新澤西州聯合市的獨立家得寶 (Home Depot) 的收益，上限利率為 5.35%，該交易也在昨天完成。家得寶 (Home Depot) 的租金在未來 14 年保持不變，並透過成長幅度最小的選擇包含另外 50 年的租金期限。

We are underwriting several assets in the DC to Boston corridor that would likely be funded in part through the disposition of lower growth single-tenant assets like the Home Depot property we just sold. Even though the acquisition market is more competitive, cap rates have also compressed on single-tenant assets, so we still expect to make a meaningful spread through future capital recycling.

我們正在承保華盛頓到波士頓走廊的幾項資產，這些資產的部分資金可能是透過處置低成長的單一租戶資產（例如我們剛剛出售的家得寶房產）來提供的。儘管收購市場競爭更加激烈，但單一租戶資產的資本化率也有所壓縮，因此我們仍然期望透過未來的資本回收來實現有意義的利差。

Leasing activity remained strong. We matched last quarter's record volume with the execution of 23 new leases at a same-space cash spread of 15%. Shop occupancy increased by 500 basis points compared to the third quarter of 2023 and by 60 basis points sequentially to 90.4%. Our signed, but not open pipeline amounts to $24 million or 9% of net operating income.

租賃活動依然強勁。我們以 15% 的同空間現金利差執行了 23 份新租賃，追平了上季創紀錄的數量。與 2023 年第三季相比，商店入住率增加了 500 個基點，較上季增加了 60 個基點，達到 90.4%。我們已簽署但尚未公開的管道總額為 2,400 萬美元，佔淨營業收入的 9%。

Notably, in the third quarter, we commenced $6 million of annualized gross rent, a leading indicator for same-property NOI growth over the next several quarters. New rent commencements included Ralph's Supermarket at Montehiedra, Bath & Body and Crumbl Cookies at Bergen Town Center, CityMD and Starbucks at Bruckner, and Starbucks at Heritage Square.

值得注意的是，在第三季度，我們開始實現 600 萬美元的年化總租金，這是未來幾季同類物業 NOI 成長的領先指標。新開始出租的商店包括位於 Montehiedra 的 Ralph's Supermarket、位於 Bergen Town Centre 的 Bath & Body 和 Crumbl Cookies、位於 Bruckner 的 CityMD 和 Starbucks 以及位於 Heritage Square 的 Starbucks。

Based on our better-than-expected results, strong retail fundamentals and accretive capital recycling, we increased our 2024 FFO as adjusted guidance to $1.32 to $1.35 per share, up $0.03 per share at the midpoint, reflecting 7% expected FFO growth for the year. We continue to believe that we will reach the high end of our 2025 FFO target of $1.31 to $1.39 per share.

基於好於預期的業績、強勁的零售基本面和增值的資本回收，我們將2024 年FFO 調整後指導值提高至每股1.32 美元至1.35 美元，中值每股上漲0.03 美元，反映出今年FFO 預期增長7% 。我們仍然相信，我們將達到 2025 年 FFO 目標的上限，即每股 1.31 美元至 1.39 美元。

Our achievements to date are truly a testament to the quality of our real estate and the dedication and commitment of the Urban Edge team. We are excited about the growth opportunities we see ahead.

我們迄今為止所取得的成就確實證明了我們房地產的品質以及 Urban Edge 團隊的奉獻和承諾。我們對未來的成長機會感到興奮。

I will now turn it over to our Chief Operating Officer, Jeff Mooallem.

我現在將把它交給我們的營運長 Jeff Mooallem。

Thanks, Jeff, and good morning, everyone. It was another strong quarter at Urban Edge, as we continued to execute on all three growth drivers of our business: leasing, redevelopment, and acquisitions. We signed 45 deals in the third quarter for a total of 683,000 square feet, including 23 new leases at a same-space spread of 15% and 22 renewals at an 8% spread.

謝謝傑夫，大家早安。這是 Urban Edge 又一個強勁的季度，我們繼續執行業務的所有三個成長動力：租賃、重建和收購。第三季度，我們簽署了 45 份協議，總面積為 683,000 平方英尺，其中包括 23 份新租約，同空間價差為 15%，以及 22 份續租，面積價差為 8%。

Our same-property leased occupancy of 96.3% increased 200 basis points compared to the prior year and is down 10 basis points compared to the prior quarter. The slight decrease was due to an expected lease termination at Hudson Mall, where we received a termination fee from a national tenant on a space that we are now in negotiations to backfill.

我們的同物業租賃率為 96.3%，比上年增加 200 個基點，比上季下降 10 個基點。略有下降是由於哈德遜購物中心的租約預計終止，我們收到了全國租戶的終止費，目前我們正在談判回填該空間。

Anchor tenant occupancy is holding steady at a robust 97.4%. While we're constantly monitoring current or future potential bankruptcies such as Big Lots, as we've said in the past, often we don't even have an opportunity to get those leases back as our markets are highly coveted by other retailers in an auction process.

主力租戶入住率穩定維持在 97.4% 的強勁水準。雖然我們不斷監控當前或未來潛在的破產情況，例如 Big Lot，但正如我們過去所說，我們通常甚至沒有機會收回這些租約，因為我們的市場受到其他零售商的高度覬覦。

To the extent we do get anchor spaces back, we believe any short-term exposure to a reduced occupancy is offset by longer-term opportunities to improve both rent and tenant mix.

在我們確實恢復了固定空間的情況下，我們相信任何短期入住率下降的風險都會被改善租金和租戶組合的長期機會所抵消。

Our small shop leased occupancy now stands at 90.4%, up 60 basis points from the prior quarter and our highest shop occupancy percentage ever. Around this time last year, with small shop occupancy sitting at 85.4%, we started calling 2024 our small shop leasing year, and we set a goal to be at 91% by the end of this year. Based on new leases we're currently negotiating, we remain on track to hit 91%. And the quality is matching the quantity with retailers such as Sweetgreen, Sephora, CAVA, and Mathnasium on that roster.

我們的小型商店出租率目前為 90.4%，比上一季上升 60 個基點，是我們有史以來最高的商店出租率。去年這個時候，小商店入住率為 85.4%，我們開始將 2024 年稱為小型商店租賃年，並設定了今年年底達到 91% 的目標。根據我們目前正在談判的新租約，我們仍有望達到 91%。而且其品質與數量與 Sweetgreen、Sephora、CAVA 和 Mathnasium 等零售商的名冊上的數量相匹配。

Generating this kind of improvement in shop occupancy in a relatively short period of time, just one year, is a credit to our entire team, from the leasing team sourcing and negotiating the deals to the attorneys preparing them to the construction and development departments getting tenants open.

在相對較短的時間內（僅僅一年）實現店鋪入住率的這種改善，是我們整個團隊的功勞，從租賃團隊採購和談判交易，到律師準備交易，再到建築和開發部門吸引租戶打開。

It's also further testament to the shift in fundamentals we've been seeing for the past couple of years, namely that retailer demand has remained resilient and that our assets are among the most sought-after shopping centers in our markets.

這也進一步證明了過去幾年我們所看到的基本面的轉變，即零售商需求保持彈性，並且我們的資產是市場上最受歡迎的購物中心之一。

Like leasing, our low-risk redevelopment program remains a strong driver for our 2024 growth. This quarter, we stabilized projects at Kingswood Crossing and Burnside Commons, both in Metro New York City, and both with regional anchors on long-term leases. We have a $159 million redevelopment pipeline that is expected to generate a 14% unlevered yield on cost.

與租賃一樣，我們的低風險重建計劃仍然是我們 2024 年成長的強大推動力。本季度，我們穩定了 Kingswood Crossing 和 Burnside Commons 的項目，這兩個項目都位於紐約市大都會區，並且都擁有長期租賃的區域錨點。我們擁有價值 1.59 億美元的重建管道，預計將產生 14% 的無槓桿成本收益率。

I want to close by spending some time discussing the acquisition market and how it has evolved this year for Urban Edge and for others. There is no doubt that in our core markets and for retail assets overall, there's been a notable increase in activity and a notable decrease in cap rates. The volume of retail property sales nationwide is up from $6 billion in 2023 to $10 billion year-to-date in 2024. Debt markets have also come back in a big way with both CMBS originations and traditional lending, well ahead of last year's pace.

最後，我想花一些時間討論收購市場以及今年 Urban Edge 和其他公司的收購市場如何演變。毫無疑問，在我們的核心市場和整個零售資產中，活動顯著增加，資本化率顯著下降。全國零售物業銷售額將從 2023 年的 60 億美元增加到 2024 年迄今的 100 億美元。隨著 CMBS 的發行和傳統貸款的出現，債務市場也大幅回升，遠遠超過了去年的步伐。

What is driving this, we believe, is the recognition by institutional capital on both the private and the public side that retail's combination of stability and growth is outperforming many other asset classes. Rising occupancy rates, increasing market rents, stronger retailer balance sheets, and the lack of any new meaningful supply gives us very good confidence that this trend will only continue.

我們認為，推動這一趨勢的原因是私人和公共機構資本都認識到，零售業將穩定性與成長相結合，其表現優於許多其他資產類別。入住率上升、市場租金上漲、零售商資產負債表更強勁，以及缺乏任何新的有意義的供應，讓我們非常有信心這一趨勢只會持續下去。

The increased demand for retail properties, of course, has a dual effect of making our existing assets more valuable and making the acquisition of targeted properties more challenging. We were fortunate to get to the party early, buying over $550 million in the past year before prices rose. A significant 80% of that $550 million was in off-market deals sourced through our principal-to-principal relationships and our local market expertise.

當然，零售物業的需求增加會產生雙重影響，一方面使我們現有的資產更有價值，另一方面使收購目標物業更具挑戰性。我們很幸運地提前參加了聚會，在過去一年價格上漲之前購買了超過 5.5 億美元。這 5.5 億美元中有 80% 是透過我們的委託人與委託人關係以及我們的本地市場專業知識進行的場外交易。

We continue to use those avenues to find deals, and we are underwriting several assets that we believe have the right balance of stability through credit tenants with strong sales on long-term leases and growth through vacancy or below-market leases with near-term roll.

我們繼續利用這些途徑尋找交易，並且我們正在承銷幾項資產，我們認為這些資產透過長期租賃的強勁銷售的信貸租戶和透過空置或低於市場水平的租賃和近期展期實現增長，從而實現了穩定性的適當平衡。

Our recent acquisition of The Village at Waugh Chapel in Gambrills, Maryland, a highly educated and affluent trade area situated between Washington, D.C., Baltimore and Annapolis is a perfect example. We love the small shop exposure and the low anchor and outparcel rents at this asset, and we expect it to be an accretive contributor to FFO growth for a long time to come.

我們最近收購了馬裡蘭州甘布里爾斯沃教堂村(The Village at Waugh Chapel)，這是一個位於華盛頓特區、巴爾的摩和安納波利斯之間的教育程度高且富裕的貿易區，就是一個完美的例子。我們喜歡該資產的小商店曝光率以及較低的固定租金和超額租金，我們預計它將在未來很長一段時間內為 FFO 成長做出貢獻。

In sum, while the acquisition market is getting more competitive, we think our advantages as a highly credible and well-capitalized buyer will allow us to find and announce more opportunities like this one soon.

總而言之，雖然收購市場的競爭越來越激烈，但我們認為，作為高度可信且資本充足的買家，我們的優勢將使我們很快就能找到並宣布更多這樣的機會。

I will now turn it over to our Chief Financial Officer, Mark Langer.

我現在將把它交給我們的財務長馬克蘭格。

Thanks, Jeff. Good morning. As you just heard, we had another excellent quarter and have good momentum as we move into the home stretch of 2024. We reported FFO as adjusted of $0.35 per share in the third quarter. Same-property NOI growth, including redevelopment, was up 5.1% compared to the third quarter of 2023.

謝謝，傑夫。早安.正如您剛剛聽到的，我們又度過了一個出色的季度，並且在進入 2024 年衝刺階段時勢頭良好。我們報告第三季調整後的 FFO 為每股 0.35 美元。與 2023 年第三季相比，包括重建在內的同物業 NOI 成長了 5.1%。

The increase in FFO was primarily due to accretive capital recycling, new rent commencements, and contractual rent bumps. We exceeded our internal forecast, in part due to the benefit of lease termination income and the acceleration of noncash revenue related to below-market amortization, which added $0.02 per share in the quarter.

FFO 的增加主要是由於資本回收的增加、新租金的開始以及合約租金的上漲。我們超出了內部預測，部分原因是租賃終止收入的好處以及與低於市場攤銷相關的非現金收入的加速，本季每股增加了 0.02 美元。

NOI growth continues to benefit from the conversion of tenant leases that were previously executed, that are now rent paying. Our 5.1% NOI growth this quarter was driven by a 5% increase in minimum rent year-over-year. As a reminder, we do not include lease termination income in NOI. While uncollectible rental revenue was almost twice as high as the unusually low level we recorded in the third quarter of last year, it was 25 basis points lower than we had expected when measured as a percentage of rental revenues.

NOI 的成長繼續受益於先前執行的租戶租約的轉換，這些租約現在正在支付租金。本季 NOI 成長 5.1%，主要得益於最低租金年增 5%。提醒一下，我們不將租賃終止收入計入 NOI。雖然無法收回的租金收入幾乎是我們去年第三季記錄的異常低水準的兩倍，但以佔租金收入的百分比衡量，它比我們的預期低了 25 個基點。

On the financing front, we closed on a new 5-year $31 million mortgage secured by Greenbrook Commons at a fixed rate of 6% and a new 10-year $30 million mortgage secured by Briarcliff Commons at a fixed rate of 5.5%. Both mortgages were executed at a spread of 180 basis points. We continue to see debt capital widely available from all primary sources, including life companies, CMBS, and select regional and national banks.

在融資方面，我們完成了由 Greenbrook Commons 以 6% 的固定利率擔保的 5 年期 3,100 萬美元新抵押貸款，以及由 Briarcliff Commons 以 5.5% 的固定利率擔保的新 10 年期 3,000 萬美元抵押貸款。兩項抵押貸款均以 180 個基點的利差執行。我們繼續看到債務資本可從所有主要來源廣泛獲得，包括人壽公司、CMBS 以及部分地區和國家銀行。

We are currently under contract to refinance our maturing loan at Brick Commons in the fourth quarter with a new seven-year $50 million mortgage at a fixed rate of 5.2%, locked at a spread of 155 basis points. That spread reflects the very high quality of Brick Commons with a grocer that is doing over $1,300 in sales per square foot. After the Brick mortgage financing is completed, we have no other debt maturities until December 2025, where we only have one $24 million mortgage that is maturing, which is easily refinanceable.

目前，我們簽訂了合同，將在第四季度為 Brick Commons 的到期貸款進行再融資，提供新的 7 年期 5,000 萬美元抵押貸款，固定利率為 5.2%，利差鎖定為 155 個基點。這一價差反映了 Brick Commons 的高品質，該雜貨店每平方英尺的銷售額超過 1,300 美元。Brick 抵押貸款融資完成後，我們在 2025 年 12 月之前沒有其他債務到期，只有一筆 2,400 萬美元的抵押貸款即將到期，很容易再融資。

Given our recent acquisition activity, we issued about 4.4 million shares of common stock under our ATM, raising approximately $84 million of net proceeds during the quarter. We had $150 million drawn on our line of credit at the end of the second quarter, bearing interest at about 6.5% and fully repaid the balance in the third quarter using proceeds from the ATM along with those from the aforementioned mortgage financings.

鑑於我們最近的收購活動，我們在 ATM 下發行了約 440 萬股普通股，本季籌集了約 8,400 萬美元的淨收益。第二季末，我們從信用額度中提取了 1.5 億美元，利息約為 6.5%，並在第三季使用 ATM 收益以及上述抵押融資收益全額償還了餘額。

We continue to make progress reducing our overall leverage levels with net debt-to-EBITDA of 5.8 times using third quarter annualized income, excluding lease termination income. This level will fluctuate with new acquisitions and mortgage activity, but should remain in the low 6 times range, which is below the 6.5 times target we outlined at our April 2023 Investor Day.

我們繼續在降低整體槓桿水準方面取得進展，使用第三季年化收入（不包括租賃終止收入）計算的淨債務與 EBITDA 比率為 5.8 倍。該水準將隨著新收購和抵押貸款活動而波動，但應保持在 6 倍的低水準範圍內，低於我們在 2023 年 4 月投資者日概述的 6.5 倍目標。

Turning to our outlook for 2024. We increased our FFO as adjusted guidance by $0.03 per share, implying a fourth quarter FFO rate of $0.33 per share at the midpoint. This guidance increase is related to the $0.02 of benefit from lease termination and lease amortization income I previously described and $0.01 is due to favorable trends on the bad debt side and other expense improvements, including G&A.

轉向我們對 2024 年的展望。我們將調整後的 FFO 指引值提高了每股 0.03 美元，這意味著第四季度 FFO 利率中點為每股 0.33 美元。這項指導成長與我之前描述的租賃終止和租賃攤銷收入帶來的 0.02 美元收益有關，0.01 美元是由於壞帳方面的有利趨勢和其他費用改善（包括一般管理費用）所致。

Our updated guidance incorporates the acquisition and disposition activity we have announced today, but does not assume any other transactional activity in 2024. Same-property NOI growth, including redevelopment guidance has been increased to reflect our better-than-expected performance year-to-date, resulting in a new midpoint of 5.4%, up from the prior midpoint of 5.25%, implying 8.6% growth in the fourth quarter.

我們更新後的指引納入了我們今天宣布的收購和處置活動，但不假設 2024 年會發生任何其他交易活動。相同物業的 NOI 成長（包括重建指導）已上調，以反映我們今年迄今優於預期的業績，導致新的中點為 5.4%，高於先前的中點 5.25%，這意味著 8.6% 的成長第第四季。

As Jeff mentioned, $6 million of annualized gross rents commenced in the third quarter from leases previously executed, which will help drive our NOI growth over the next several quarters. In terms of the SNO pipeline for 2025, we have disclosed in our supplement that we expect about $10 million of additional gross revenue to come online. We expect one third of that will be realized in the first half of the year with two third coming in the second half of the year.

正如傑夫所提到的，第三季從先前執行的租賃中開始產生 600 萬美元的年化總租金，這將有助於推動我們未來幾季的 NOI 成長。就 2025 年 SNO 管道而言，我們在補充資料中揭露，我們預計將帶來約 1000 萬美元的額外總收入。我們預計其中三分之一將在上半年實現，三分之二將在下半年實現。

In closing, we are very pleased to see the execution our team has achieved on the growth drivers we outlined at our Investor Day last year. Fundamentals in our business remain favorable, as there is limited space available, strong demand from our current core tenant base, a lack of new supply, strong mark-to-market rent spreads, and favorable levels of attractively priced capital.

最後，我們非常高興地看到我們的團隊在去年投資者日概述的成長動力方面所取得的成果。我們業務的基本面仍然有利，因為可用空間有限、當前核心租戶群的強勁需求、缺乏新供應、按市值計價的租金利差強勁以及價格有吸引力的資本水平良好。

We are seeing the benefits of our simplified portfolio while focusing on prudent capital allocation, both from accretive acquisitions and from the sale of high-value, low-growth assets. The strength of our cash flow has been enhanced by the anchor repositioning efforts we have completed, and we expect further improvement as new tenants open and shop leasing follows.

我們看到了簡化投資組合的好處，同時注重審慎的資本配置，無論是透過增值收購或出售高價值、低成長的資產。我們已完成的錨定重新定位工作增強了我們的現金流實力，隨著新租戶的開業和商店租賃的跟進，我們預計將進一步改善。

Our balance sheet is in excellent shape with limited maturities, abundant liquidity, and growing free cash flow. We look forward to continuing our track record of generating strong earnings growth.

我們的資產負債表狀況良好，期限有限，流動性充裕，自由現金流不斷成長。我們期待繼續保持強勁獲利成長的記錄。

I will now turn the call over to the operator for questions.

我現在將把電話轉給接線員詢問問題。

(Operator Instructions)

（操作員說明）

Floris Van Dijkum, Compass Point.

弗洛里斯·範迪庫姆，羅盤點。

Hey, good morning guys. Thanks for taking my question. Encouraging results. Maybe if you could -- particularly, I'm encouraged, and Jeff, maybe if you can touch on the shop occupancy. And everybody in the sector appears to be setting new records in terms of occupancy levels, where do you see that popping out? Or do you think -- I mean, is it -- some of your peers are getting 95% shop occupancy, is that feasible in your portfolio in your view?

嘿，早上好，夥計們。感謝您提出我的問題。令人鼓舞的成果。也許如果你能——特別是，我很受鼓舞，傑夫，也許你能談談商店的入住情況。該行業的每個人似乎都在入住率方面創造了新記錄，您認為這種情況會在哪裡出現？或者你認為——我的意思是，是嗎——你的一些同行的商店入住率達到了 95%，你認為這在你的投資組合中可行嗎？

Hey good morning, Floris, yes, it's certainly feasible. Let's talk a little bit about, we've gone now up about 500 basis points in this quarter with a goal of getting another 60 to 70 basis points by the end of the year to finish 2024 with 91% shop occupancy. We certainly would like to be in that 92%, 93% range next year.

嘿早安，弗洛里斯，是的，這當然是可行的。讓我們談談，本季我們已經上漲了約 500 個基點，目標是到年底再上漲 60 到 70 個基點，到 2024 年商店入住率達到 91%。我們當然希望明年能達到 92%、93% 的範圍。

But at this point, with where we are, we start really looking not just at vacant spaces and the ability to pop that occupancy up a little bit, but we start to look at underleased spaces and opportunities where we might have to, if not change out the occupancy, change out the tenant for a better quality and a better rent.

但在這一點上，就我們目前的情況而言，我們開始真正關注的不僅僅是空置空間和稍微增加佔用率的能力，而且我們開始關注未充分出租的空間和機會，我們可能必須（如果不改變）退出入住，更換租戶以獲得更好的品質和更好的租金。

So one of the things I'm talking to the leasing team about all the time is don't just lease the space that's vacant now, lease the space that we think might be coming up vacant one day or where we think we can get it back for a higher rent. In some cases, we're even combining some shop spaces for really better tenants and larger anchor spaces, and that requires us to maybe get out of a couple of leases and combine them with a couple of vacancies. So you wouldn't see a lot of shop occupancy pickup, but we're enhancing the asset.

因此，我一直與租賃團隊談論的一件事是，不要只租賃現在空置的空間，還要租賃我們認為有一天可能會空出的空間或我們認為可以獲得的空間回來換取更高的租金。在某些情況下，我們甚至將一些商店空間合併起來，以提供更好的租戶和更大的錨定空間，這可能需要我們擺脫幾個租約，並將它們與幾個空置空間結合起來。因此，您不會看到商店入住率大幅上升，但我們正在增強資產。

I think 92% to 93% is realistic. 94% would be nice, but we're trying not to manage to the number. If we get to 93% with the quality we've been getting, I'll be very happy.

我認為92%到93%是現實的。 94% 就很好了，但我們試著不達到這個數字。如果我們的品質達到 93%，我會非常高興。

Thanks. And maybe another question, and this may be is more in Mark's wheelhouse. You issued some equity during the quarter. As you look at the market, you talked about the fact that cap rates are probably heading lower in your markets. Are you seeing in the investment side greater assets on the market today, maybe portfolios on the market today? And how would they be partially funded?

謝謝。也許還有另一個問題，這可能更多的是馬克的駕駛室。您在本季發行了一些股票。當您觀察市場時，您談到了您所在市場的上限利率可能會下降的事實。您是否在投資方面看到當今市場上更多的資產，也許當今市場上的投資組合？他們將如何獲得部分資助？

It sounds like that you would consider partially funding some of these things with equity as well, obviously, as incremental asset sales, as you've been doing over the last couple of years. Maybe if you can touch on your funding sources and how you look at your equity today relative to asset sales.

聽起來你會考慮用股權為其中一些事情提供部分資金，顯然，作為增量資產銷售，就像你在過去幾年所做的那樣。也許您可以談談您的資金來源以及您如何看待當前相對於資產出售的股本。

Yes, Floris, I'll take the capital side and let Jeff comment on your question on what -- any other portfolios that we might be seeing. But we -- I think you hit it and answered it really, and that is we look at a blend. We have very good quality assets that you saw again today with the Home Depot. So asset sales, especially at the cap rates that we're commanding is definitely one of the primary targeted sources.

是的，弗洛里斯，我將站在資本方面，讓傑夫評論你關於我們可能看到的任何其他投資組合的問題。但我們——我認為你擊中了它並確實回答了它，那就是我們正在尋找混合。我們擁有非常優質的資產，您今天在家得寶再次看到了這一點。因此，資產銷售，特別是按照我們要求的上限利率，絕對是主要目標來源之一。

And the debt spreads, I've given you the price of debt, which is probably 5.5% to 6%. And so then when we think about equity, it would really be earmarked towards growth initiatives like acquisitions where we can look at what our implied cap rate is relative to what we're buying and the growth of those assets. So it's really a blend of all of that. But I'll let Jeff comment on what we might be seeing on the portfolio side.

至於債務利差，我給了你們債務價格，大概是 5.5% 到 6%。因此，當我們考慮股權時，它實際上會專門用於收購等成長舉措，我們可以看看我們的隱含資本化率相對於我們所購買的資產和這些資產的成長。所以它實際上是所有這些的混合體。但我會讓傑夫評論一下我們在投資組合方面可能會看到的情況。

I mean we're definitely on the hunt for more acquisitions, Floris, and there are a number of assets that we're underwriting in the D.C. to Boston corridor. I think one of our main competitive advantages is that we are the local sharpshooter. And so we actually know which centers within the D.C. to Boston corridor we want to own. We also mostly know those owners and have principal-to-principal relationships with them.

我的意思是，弗洛里斯，我們肯定會尋求更多收購，並且我們正在華盛頓特區到波士頓走廊承保許多資產。我認為我們的主要競爭優勢之一是我們是當地的神槍手。因此，我們實際上知道我們想要擁有華盛頓特區至波士頓走廊內的哪些中心。我們也大多認識這些所有者並與他們有主要的主要關係。

Jeff had mentioned during his comments that 80% of the over $500 million that we've acquired have been off-market transactions, and our pipeline contains a blend of off-market deals and then some marketed deals. Generally, we'd rather go with the off-market deal.

傑夫在評論中提到，我們收購的超過 5 億美元的資產中，80% 是場外交易，我們的管道既包含場外交易，也包含一些市場交易。一般來說，我們寧願選擇場外交易。

But because we've been one of the largest buyers in this area for a long time, but in particular, over the last year, deals beget more deals. So sellers want to come to us. They have great comfort that we're going to end up closing and that we're relatively easy to work with.

但由於我們長期以來一直是該領域最大的買家之一，特別是在去年，交易會帶來更多交易。所以賣家想來找我們。他們對我們最終會關閉並且相對容易合作感到非常欣慰。

And then the last point on our competitive advantage in terms of being a local sharpshooter is we move very quickly. It's very easy for us just to jump in the car and see a potential acquisition and then actually come home and sleep in our bed that same night. So we're constantly looking at deals.

作為本地神槍手，我們的競爭優勢的最後一點是我們的行動非常快。對我們來說，很容易就跳進車裡看看潛在的收購，然後當晚回家就睡在床上。所以我們一直在尋找交易。

And our deal team, and there are nine of us around this conference room right now, I think every one of us saw this acquisition early on and saw -- and department heads saw it early on to make sure that there weren't any surprises later through our due diligence. So I would love the fact that we're -- we have this local sharpshooter mentality. I do believe that allows us to source deals more effectively.

我們的交易團隊，現在這個會議室裡有我們九個人，我想我們每個人都很早就看到了這次收購，而且部門主管也很早就看到了它，以確保不會出現任何意外後來通過我們的盡職調查。所以我很高興我們擁有當地神槍手的心態。我確實相信這使我們能夠更有效地尋找交易。

Thanks Scott.

謝謝斯科特。

Samir Khanal, Evercore ISI.

薩米爾·卡納爾，Evercore ISI。

Good morning everyone. Jeff or Mark, can you provide a bit more color on the space you got back? I think you said from a national tenant. Just trying to -- I'm sure over time, you'll be able to re-tenant that space at a much higher rent. But just how should we think about maybe the drag it can create or maybe even into revenues, earnings over the next 12 to 18 months? I just want to make sure I get that right. Thanks.

大家早安。傑夫或馬克，你能為你回來的空間提供更多的色彩嗎？我想你是從一個國家租戶那裡說的。我相信隨著時間的推移，您將能夠以更高的租金重新租用該空間。但我們該如何考慮它可能造成的拖累，甚至可能對未來 12 到 18 個月的收入、收益造成的拖累呢？我只是想確保我做對了。謝謝。

Yeah. Hey, Samir, it's Jeff Mooallem. Yes, I mean, we've got some confidentiality provisions in that termination agreement with that tenant. So I can't give you a whole lot of information about who it was. What we can tell you is they had not RCD-ed yet. So there was no existing revenue coming from that box at the time we did the termination. And it is a national tenant that had been looking to get out of several leases in several locations around the country. This was not a unique outlier situation.

是的。嘿，薩米爾，我是傑夫·穆阿勒姆。是的，我的意思是，我們與該租戶的終止協議中有一些保密條款。所以我無法向你提供有關他是誰的大量資訊。我們可以告訴你的是他們還沒有被RCD教育。因此，在我們終止時，該盒子沒有現有收入。這是一家全國性租戶，一直在尋求擺脫全國多個地點的幾項租約。這並不是一個獨特的異常情況。

When we first started talking to them about a possible termination, our leasing team felt very comfortable that we would have good demand on the space, and we reached out to a few people and had conviction that we could do something accretive there. And the conversations progressed, and we ended up agreeing to a termination.

當我們第一次開始與他們談論可能的終止時，我們的租賃團隊感到非常放心，因為我們對這個空間有很好的需求，我們聯繫了一些人，並相信我們可以在那裡做一些增值的事情。談話取得了進展，我們最終同意終止。

So we did receive a fee there that we were very happy with, and we expect to have that re-tenanted probably in the next couple of quarters and announce, but it was not an RCD tenant. They had not started paying rent or open for business yet. So it's a little bit easy to take off the list.

因此，我們確實在那裡收到了一筆我們非常滿意的費用，我們預計可能會在接下來的幾個季度內重新租用並宣布，但它不是 RCD 租戶。他們還沒有開始支付租金或開始營業。所以從名單上刪除有點容易。

Okay. Got it. And I guess, Mark, on the same-store guide here, I mean, it's late into the year now and the range is still pretty wide, that 4.75% to 6%. I know you took it up a little bit, but help us kind of understand kind of what's driving that, kind of achieve the low end or the high end of that range.

好的。知道了。我想，馬克，在同店指南上，我的意思是，現在已經是今年晚些時候了，範圍仍然很寬，4.75% 到 6%。我知道你花了一點時間，但請幫助我們理解是什麼推動了這一點，實現了該範圍的低端或高端。

Yes, Samir, happy to. It really is a function kind of the size of our portfolio relative to what risk. The downside is really tied to the potential on any tenant fallout and elevated bad debt in light of the filings from Big Lots, Blink, [buybuy], and some of the lumber liquidators that you had seen. All those headlines is noise for us. If all of them were to stop paying and go out, then you can hit the high end because those tenants alone are about $3 million of gross rent.

是的，薩米爾，很高興。它實際上是我們的投資組合規模相對於風險的函數。根據 Big Lot、Blink、[buybuy] 和您所見過的一些木材清算人提交的文件，其負面影響實際上與任何租戶後果和壞帳增加的可能性有關。所有這些頭條新聞對我們來說都是噪音。如果他們全部停止付款並出去，那麼你就可以達到高端，因為光是這些租戶的總租金就約為 300 萬美元。

And the high end is really the opposite that if we don't have that, we get a little bit lucky on some of the RCDs, and we don't have the bad debt that we've contemplated, you get to the high end. So those are really the big drivers. At this point, new leasing isn't really -- as you said, that's going to hit next year. So it's really more a function of what the tenant risk list hits.

高端實際上是相反的，如果我們沒有，我們在一些 RCD 上會有點幸運，並且我們沒有我們考慮過的壞賬，你就會到達高端。所以這些確實是最大的驅動因素。在這一點上，新的租賃並不是真的——正如你所說，這將在明年發生。因此，這實際上更多地取決於租戶風險清單的命中情況。

Okay. Got it. And one last one for me on -- Mark, you reduced G&A guidance. Help us think through -- I mean, you've kind of reduced G&A in the past as well. And as we think about 2025, how much more is there you can do from a modeling perspective as we think about that?

好的。知道了。最後一個問題是──馬克，你減少了一般行政費用指引。幫助我們思考──我的意思是，你們過去也減少了一般行政費用。當我們思考 2025 年時，從建模的角度來看，您還能做多少事？

Yeah. We'll give formal guidance on that when we do our year-end reporting. But I can say I would not want to set the expectation. As you pointed out, over the last two years, we have really chipped away, examined -- I mean, every element, every line item that we could. So I don't think that there's going to be declines. We'll have cost of living and inflationary increases on the one end for sure. So I would not set an expectation that this would continue to decline.

是的。當我們做年終報告時，我們將就此提供正式指引。但我可以說我不想設定期望。正如你所指出的，在過去的兩年裡，我們確實已經進行了研究，我的意思是，我們可以研究的每一個元素、每一個項目。所以我認為不會出現下降。一方面我們肯定會面臨生活成本和通貨膨脹的增加。因此，我不會預期這一數字會繼續下降。

Okay, thank you guys.

好的，謝謝你們。

Ronald Kamdem, Morgan Stanley.

羅納德‧卡姆德姆，摩根士丹利。

Hey, two quick ones from me. Just on the acquisition and disposition front, just focusing on the disposition side. As you sort of look at the portfolio, how much more opportunity is there to sort of sell out of these lower cap rate assets in these 1031 fashions? Just are we through that pool? Is there more to come and so forth?

嘿，我的兩個快點。只是在收購和處置方面，只關注處置方面。當你審視投資組合時，你會發現，在這 1031 種方式中，還有多少機會出售這些較低資本化率的資產？我們剛剛穿過那個水池了嗎？還會有更多的事情發生嗎？

Yeah. Look, Ron, good morning. My guess is that in any given year, we're going to be selling $100 million to $200 million of assets just across the board. We're definitely focused now on these single-tenant properties. If you look at our supplement, you'll see that we own 21 Home Depot, Lowe's, Walmart and Target. Those tenants generate about $33 million a year in total rent.

是的。聽著，榮恩，早安。我的猜測是，在任何一年，我們都會全面出售 1 億至 2 億美元的資產。我們現在肯定關注這些單一租戶房產。如果您查看我們的補充資料，您會發現我們擁有 21 個家得寶 (Home Depot)、Lowe's、沃爾瑪 (Walmart) 和塔吉特 (Target)。這些租戶每年產生約 3,300 萬美元的總租金。

Not all of them are separately subdivided, but that's the pool that we're focused on to generate some of the lower cap rate sales. But I'm hoping that you'll see over the next four to five years, $100 million to $200 million of dispositions pretty consistently. And hopefully, we'll earn a decent spread on that as we redeploy that capital into higher quality shopping centers.

並非所有這些都單獨細分，但這是我們專注於產生一些較低上限銷售的池。但我希望在接下來的四到五年內，您會看到 1 億到 2 億美元的配置相當一致。希望當我們將資金重新部署到更高品質的購物中心時，我們能夠從中獲得可觀的利差。

Got it. That's helpful. And then my second question was just, obviously, you reiterated the 2025 target at the high end. So kudos to the team to getting there. But how does -- what the assumptions -- what's the same-store NOI assumption that's baked into that, that was assumed into that? And how does that compare to the 5% you did this quarter?

知道了。這很有幫助。然後我的第二個問題是，顯然，您重申了 2025 年的高端目標。非常感謝團隊能夠到達那裡。但是，假設的同店 NOI 假設是什麼？與您本季的 5% 相比，情況如何？

Yeah, Ron, the NOI growth -- each of the assumptions that's embedded in that, we're going to break down and guide and share the assumptions just like we did this year. But you can kind of take our SNO pipeline, roll it in, obviously, on a year-over-year basis, as you get through the year, there's less growth. But I think healthy numbers that we outlined in our investor deck of 5% type numbers are certainly achievable.

是的，羅恩，NOI 成長——其中包含的每一個假設，我們將像今年一樣分解、指導和分享這些假設。但你可以採用我們的 SNO 管道，顯然，逐年推出它，隨著這一年的過去，成長會減少。但我認為我們在投資者套牌中列出的 5% 類型數字中列出的健康數字肯定是可以實現的。

Got it. Okay. That's it for me. Thank you.

知道了。好的。對我來說就是這樣。謝謝。

(Operator Instructions)

（操作員說明）

Paulina Rojas, Green Street.

寶琳娜·羅哈斯，格林街。

Good morning. You mentioned in your prepared remarks that the market has become more competitive, that you have seen cap rates compressed. Can you talk about the magnitude of the compression you have observed? What time period you have in mind when you say they have compressed and whether you have seen this across formats?

早安.您在準備好的發言中提到，市場競爭變得更加激烈，您已經看到上限利率被壓縮。您能談談您觀察到的壓縮程度嗎？當您說它們已經壓縮時，您想到的是哪個時間段？

The last part -- the format, yes, my guess, Paulina, is cap rates are down 50 to 75 basis points over the last six to nine months. And in terms of format, I mean, we're definitely seeing more demand from some of the larger centers than we have in the past. But there is still a spread between buying a center that might have a grocery store and a couple of boxes than simply buying a neighborhood center that's only the grocery store.

最後一部分——是的，Paulina，我猜，上限利率在過去六到九個月裡下降了 50 到 75 個基點。就形式而言，我的意思是，我們肯定會看到一些較大的中心比過去有更多的需求。但購買可能有雜貨店和幾個盒子的中心與簡單購買只有雜貨店的鄰里中心之間仍然存在差距。

There's still a decent spread there. And those are the types of assets that we're focused on acquiring because we think we can get them at a decent spread relative to our cost of capital and also relative to some of the disposition activity that's taking place.

那裡仍然有相當大的傳播。這些是我們重點收購的資產類型，因為我們認為相對於我們的資本成本以及相對於正在發生的一些處置活動，我們可以以適當的價差獲得它們。

And Paulina, this is Jeff. I would just add, a year ago or so for $100 million north assets, there was not a very extensive buyer pool. And I think to what our earlier comments were, some of the institutional capital has really aggregated around retail. It's not just that interest rates have caused cap rates to compress.

寶琳娜，這是傑夫。我想補充一點，大約一年前，北方資產價值 1 億美元的資產還沒有非常廣泛的買家群體。我認為，根據我們先前的評論，一些機構資本確實聚集在零售業周圍。不只是利率導致資本化率壓縮。

It's also that there's more buyer demand for larger type assets because people are more comfortable now with the risk profile of retail. And certainly, the growth profile has gotten a lot better. So we're seeing the competition, not just from our REIT competitors and peers, but also from institutional capital that, in some cases, is new to the product type.

此外，買家對大型資產的需求也有所增加，因為人們現在對零售的風險狀況更加滿意。當然，成長狀況已經變得更好了。因此，我們看到的競爭不僅來自我們的房地產投資信託競爭對手和同行，還來自機構資本，在某些情況下，這些資本對於該產品類型來說是新的。

Thank you. And then a follow-up on the -- your intention to potentially sell some single stores. You mentioned Home Depot. So it sounded like you would be willing to sell basically any of these stores. And I wonder if it is a consideration at all, the impact that it could have not controlling the entire center in some situations. So, yeah, and even (multiple speakers) --

謝謝。然後是你打算出售一些單一商店的後續行動。你提到了家得寶。所以聽起來你基本上願意出售這些商店中的任何一家。我想知道這是否是一個考慮因素，在某些情況下它可能無法控制整個中心的影響。所以，是的，甚至（多位發言者）——

Paulina, let me correct you. I mean we would not sell one of these anchors in the middle of a shopping center. The centers that -- I mean, the one we just sold, it was a freestanding Home Depot. We do own some separately subdivided freestanding anchor tenants. Like, for example, we own a Lowe's across the street from Bergen Town Center that would be a prime example of another disposition candidate. So -- but no, we would not break up a shopping center.

寶琳娜，讓我糾正你。我的意思是我們不會在購物中心中間出售這些錨點之一。我的意思是，我們剛剛出售的那個中心，是一個獨立的家得寶。我們確實擁有一些單獨細分的獨立主力租戶。例如，我們在卑爾根市中心的街對面擁有一家勞氏百貨公司，這將是另一個處置候選人的典型例子。所以——但不，我們不會拆散購物中心。

But would we sell a shopping center that has both a Home Depot and a Costco and maybe a couple of shops at a low cap rate? Absolutely.

但是，我們是否會以較低的上限利率出售一個同時擁有家得寶 (Home Depot) 和好市多 (Costco) 以及幾家商店的購物中心？絕對地。

Okay. So probably the ideal candidate is a Home Depot that doesn't have a lot of cross shopping with the rest of the center and that it's physically a little more isolated. Is that a [good way to phrase it or not necessarily]?

好的。因此，理想的候選人可能是家得寶（Home Depot），它與中心的其他地方沒有太多的交叉購物，而且在物理上更加孤立。那是一個[表達方式好或不一定]？

Yeah, I think, Paulina, you should think of it as two separate categories. One is the single tenant asset like the one we just sold yesterday, where it's really just that one single big box credit tenant. And then we have several shopping centers, which effectively trade like a big box credit tenant would because it is one or two or in some cases three big box tenants on long-term leases with very good sales and low rents.

是的，我認為，寶琳娜，你應該將其視為兩個不同的類別。一種是單一租戶資產，就像我們昨天剛出售的資產一樣，它實際上只是一個大型信用租戶。然後我們有幾個購物中心，它們像大型信貸租戶一樣有效地進行交易，因為它是一兩個或在某些情況下三個大型租戶的長期租賃，銷售非常好，租金很低。

So whether we were to sell those shopping centers or we were to sell the single-tenant assets, we think they both are sub-six cap kind of stuff that would allow us to accretively trade into some of the shopping centers we're now targeting.

因此，無論我們是出售這些購物中心還是出售單一租戶資產，我們認為它們都是六上限以下的資產，這將使我們能夠增加對我們現在瞄準的一些購物中心的交易。

Okay. Perfect. Understood. And if I may, the last one. I know that shopping center construction has been very, very sparse, but we have seen landlords pursue some outparcel developments. So like the typical single-store breakthrough to capitalize on the great demand that we're seeing. So is this something that you can do more aggressively in your portfolio? And is it something that would interest you given the economics behind [that]?

好的。完美的。明白了。如果可以的話，請講最後一篇。我知道購物中心的建設非常非常稀疏，但我們看到房東追求一些超大型開發。就像典型的單店突破一樣，利用我們所看到的巨大需求。那麼這是你可以在你的投資組合中更積極地做的事情嗎？考慮到背後的經濟因素，您是否會對它感興趣？[那]？

Absolutely. And we are doing it. I mean we've got several of those kinds of deals in the pipeline right now, some that are in development right now. We don't talk about them as much because the single tenant drive-through or bank or facility doesn't move the needle a whole lot on the numbers.

絕對地。我們正在這樣做。我的意思是，我們目前正在進行多項此類交易，其中一些正在開發中。我們不太談論它們，因為單一租戶得來速或銀行或設施並沒有在數字上產生很大的變化。

But I can think of off the top of my head, at least five of those that we have in some of our better shopping centers, whether they're ground leases or build-to-suit for single tenants or in a couple of cases even small strips and that they are accretive.

但我可以立即想到，我們在一些更好的購物中心中至少有五個這樣的購物中心，無論是地面租賃還是為單個租戶量身定制，或者在某些情況下甚至是小條狀並且它們是增值的。

I think when we talk about construction and development being hard to add meaningful supply in the future, we're talking about the 100,000 to 300,000-square-foot shopping centers where you're building around an anchor tenant and the math just doesn't seem to work with what those in-line type tenants are paying. But to the extent we can get at outparcel opportunities, whether it's ground lease or build-to-suit, we're all over those, and we have a lot of them in the queue.

我認為，當我們談論建築和開發在未來很難增加有意義的供應時，我們談論的是100,000 到300,000 平方英尺的購物中心，在這些購物中心中，你正在圍繞一個主要租戶進行建設，而數學上並沒有似乎與那些排隊類型的租戶所支付的費用相符。但就我們能夠獲得的超額機會而言，無論是土地租賃還是定制建造，我們都在這些方面，而且我們有很多機會在排隊。

Thank you.

謝謝。

That redevelopment pipeline is really generating that 14% return.

重建管道確實產生了 14% 的回報。

(Operator Instructions)

（操作員說明）

As there are no further questions, I now hand the conference over to Jeff Olson for his closing comments. Jeff?

由於沒有其他問題，我現在將會議交給傑夫·奧爾森（Jeff Olson）發表總結評論。傑夫？

Thank you. We look forward to seeing many of you at the upcoming Nareit Conference in Las Vegas, and we'll speak to you soon. Please call if you have any questions.

謝謝。我們期待在即將於拉斯維加斯舉行的 Nareit 會議上見到你們，我們很快就會與你們交談。如有任何疑問，請致電。

The conference of Urban Edge Properties has now concluded. Thank you for your participation. You may now disconnect your lines.

城市邊緣地產會議現已結束。感謝您的參與。現在您可以斷開線路。