美國沃那多房產 (VNO) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Vornado Realty Trust First Quarter 2023 Earnings Call. My name is Sarah, and I will be your operator for today's call. This call is being recorded for replay purposes. (Operator Instructions) I will now turn the call over to Mr. Steve Borenstein, Senior Vice President and Corporate Counsel. Please go ahead.

早上好，歡迎來到 Vornado Realty Trust 2023 年第一季度收益電話會議。我叫莎拉，我將擔任今天電話的接線員。正在錄製此通話以供重播之用。 （操作員說明）我現在將電話轉給高級副總裁兼公司法律顧問 Steve Borenstein 先生。請繼續。

Welcome to Vornado Realty Trust's First Quarter Earnings Call. Yesterday afternoon, we issued our first quarter earnings release and filed our quarterly report on Form 10-Q with the Securities and Exchange Commission. These documents as well as our supplemental financial information packages are available on our website www.vno.com under the Investor Relations section. In these documents and during today's call, we will discuss certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings release, Form 10-Q and financial supplement. Please be aware that statements made during this call may be deemed forward-looking statements, and actual results may differ materially from these statements due to a variety of risks, uncertainties and other factors.

歡迎來到 Vornado Realty Trust 的第一季度財報電話會議。昨天下午，我們發布了第一季度收益報告，並向美國證券交易委員會提交了 10-Q 表格的季度報告。這些文件以及我們的補充財務信息包可在我們網站 www.vno.com 的“投資者關係”部分找到。在這些文件和今天的電話會議中，我們將討論某些非 GAAP 財務措施。這些措施與最直接可比的 GAAP 措施的調節包含在我們的收益發布、10-Q 表格和財務補充中。請注意，在本次電話會議中所做的陳述可能被視為前瞻性陳述，由於各種風險、不確定性和其他因素，實際結果可能與這些陳述存在重大差異。

Please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2022, for more information regarding these risks and uncertainties. The call may include time-sensitive information that may be accurate only as of today's date. The company does not undertake a duty to update any forward-looking statements. On the call today from management for our opening comments are Steven Roth, Chairman and Chief Executive Officer; and Michael Franco, President and Chief Financial Officer. Our senior team is also present and available for questions. I will now turn the call over to Steven Roth.

有關這些風險和不確定性的更多信息，請參閱我們向美國證券交易委員會提交的文件，包括我們截至 2022 年 12 月 31 日止年度的 10-K 表格年度報告。該電話可能包含時間敏感的信息，這些信息可能僅在今天準確。公司不承擔更新任何前瞻性陳述的義務。董事長兼首席執行官史蒂文·羅斯 (Steven Roth) 今天接到管理層的電話，聽取我們的開場評論；總裁兼首席財務官 Michael Franco。我們的高級團隊也出席並回答問題。我現在將把電話轉給史蒂文羅斯。

Thank you, Steve, and good morning to everyone.

謝謝你，史蒂夫，大家早上好。

Let me get a few things out of the way first. Our business is performing well in this environment. Our outlook hasn't changed since last quarter. We are full speed ahead on our current projects, total over 5 million square feet in the PENN District. Any comment in the newspapers or industry tabloids that we have stopped is incorrect and just plain silly.

讓我先解決一些問題。我們的業務在這種環境下表現良好。自上個季度以來，我們的前景沒有改變。我們正在全速推進我們當前的項目，在賓夕法尼亞區的總面積超過 500 萬平方英尺。我們停止的報紙或行業小報上的任何評論都是不正確的，而且很愚蠢。

Just take a look at our 3 block long construction site when you next go through PENN Station or next go through a (inaudible).

當您下次通過 PENN 車站或下次通過（聽不清）時，只需看看我們 3 個街區長的建築工地。

Now some commentary on last week's dividend press release and reaction there too. Simply stated, we are going on office. Let me say that again. We are going on office. A few facts for context. We know about dividends. In 2022, our dividend was $2.12 or $435 million in cash. Over the past 10 years, we have paid, and happily paid $5.1 billion in regular dividends and another $400 million in special dividends. Last week, an analyst characterize REIT dividends as sacred, and I agree, well, I guess I sort of agree. For this year, we have already paid a $0.375 or $75 million cash first quarter dividend. We will pause paying dividends in the second and third quarters. And in the fourth quarter, based upon known facts actual taxable income, including asset sales, et cetera, we will pay out as we must, taxable income, but we'll reassess whether it is wise or appropriate to pay in cash or in a combination of cash and script.

現在對上週的股息新聞稿和那裡的反應進行一些評論。簡單地說，我們要去辦公室了。讓我再說一遍。我們要去辦公室了。上下文的一些事實。我們知道股息。 2022 年，我們的股息為 2.12 美元或 4.35 億美元現金。在過去的 10 年裡，我們支付並愉快地支付了 51 億美元的定期股息和另外 4 億美元的特別股息。上週，一位分析師將 REIT 股息描述為神聖的，我同意，好吧，我想我有點同意。今年，我們已經支付了 0.375 美元或 7500 萬美元的第一季度現金股息。我們將在第二和第三季度暫停支付股息。在第四季度，根據已知事實實際應稅收入，包括資產出售等，我們將支付我們必須支付的應稅收入，但我們將重新評估以現金或現金支付是否明智或適當現金和腳本的組合。

Shareholders should be indifferent as to whether they receive cash or script, but that cash, if retained by the corporation, might be more wisely employed for debt management, stock buybacks or whatever. As most of you know, I have resisted buybacks for years and years, resisting, copycatting in sister industry companies and resisting the pounding from analysts to "close the NAV gap."

股東應該對他們收到的是現金還是腳本無所謂，但現金如果被公司保留，可能更明智地用於債務管理、股票回購或其他方面。正如你們大多數人所知，我多年來一直抵制回購，抵制、模仿行業姊妹公司，抵制分析師“縮小資產淨值差距”的衝擊。

I believe our resistance was logical and fact based. But since last quarter's dividend announcement to this quarter's dividend announcement, our stock price has declined 35% from a low level to an even lower level. Seeing value in the stock as an opportunity to create shareholder value last Wednesday, included in our dividend press release, our Board authorized a $200 million share buyback program. We will proceed carefully and in a measured way, funding the buyback from asset sales or even cash retained from paying the dividend in script.

我相信我們的抵制是合乎邏輯且基於事實的。但是從上個季度的股息公告到本季度的股息公告，我們的股價已經從低位下跌了35%，甚至更低。上週三，將股票價值視為創造股東價值的機會，包括在我們的股息新聞稿中，我們的董事會批准了一項 2 億美元的股票回購計劃。我們將謹慎而有節制地進行，從資產出售中為回購提供資金，甚至從支付腳本中的股息中保留現金。

Since our dividend is sized based on taxable income, not FFO earnings. Here is the math. 2021 taxable income was $2.03 versus a $2.12 dividend. 2022 taxable income was $2.08 versus a $2.12 dividend. 2023 taxable income is currently projected at $1.05 without any asset sales and surely, there will be asset sales. The difference between 2022 and 2023 taxable income is primarily increased interest rates.

由於我們的股息是根據應稅收入計算的，而不是 FFO 收入。這是數學。 2021 年應稅收入為 2.03 美元，而股息為 2.12 美元。 2022 年應稅收入為 2.08 美元，而股息為 2.12 美元。 2023 年應稅收入目前預計為 1.05 美元，沒有任何資產出售，而且肯定會有資產出售。 2022 年和 2023 年應稅收入之間的差異主要是利率增加。

A couple of other comments. We think we have seen the peak in work from home. More and more CEOs are now requiring their employees back to the office. With each passing week, the office buildings feel more like 2019. And we believe it's just a matter of time before everyone is back for good. New York City seems to be leading the country in this regard.

其他一些評論。我們認為我們已經看到了在家工作的高峰期。越來越多的首席執行官現在要求他們的員工回到辦公室。每過一周，辦公樓就會感覺更像 2019 年。我們相信，每個人都永遠回來只是時間問題。紐約市在這方面似乎領先全國。

Lastly, with all CBD office stocks having been crushed, I'm great concern about the future viability of office, it is important to review our financial position and our liquidity. [We had $2.2 billion] of liquidity, including $1.3 billion of cash and treasury bills. We have over $8 billion at today's markdown values of debt-free unencumbered assets. PENN1, PENN2 and Farley are all unencumbered. The remaining capital program to complete PENN2 has been prefunded and will be paid for out of cash balances. These buildings have significant future embedded earnings growth. And as PENN2 rents up, that incremental income will do wonders for our debt metrics. We rely primarily on project level nonrecourse debt, old-fashioned mortgages. Only 2.5% of our debt is recourse and that with well-laddered maturities.

最後，由於所有 CBD 寫字樓庫存都被壓垮，我非常擔心寫字樓未來的生存能力，審查我們的財務狀況和流動性很重要。 [我們有 22 億美元] 的流動資金，包括 13 億美元的現金和國庫券。我們有超過 80 億美元的無債務無抵押資產今天的降價價值。 PENN1、PENN2 和 Farley 均不受約束。完成 PENN2 的剩餘資本計劃已預先提供資金，並將從現金餘額中支付。這些建築物具有顯著的未來內含收益增長。隨著 PENN2 的租金上漲，增加的收入將為我們的債務指標創造奇蹟。我們主要依靠項目級別的無追索權債務、老式抵押貸款。我們的債務中只有 2.5% 是有追索權的，而且期限合理。

We are clear eye and realistic about the near-term financial market challenges. It is not pretty when 3% debt rolls over to 6%, 7% or even an 8% market. We will certainly have a few workouts to deal with over the next couple of years. But that is the point of having nonrecourse debt. We have no maturities this year, limited property level maturities next year and no corporate maturities in 2025 with sufficient capacity on our line that matures in December 27 and so that we don't have to finance in the current hostile market.

我們對近期金融市場的挑戰保持清醒和現實的認識。當 3% 的債務滾動到 6%、7% 甚至 8% 的市場時，情況並不好。在接下來的幾年裡，我們肯定會進行一些訓練。但這就是無追索權債務的意義所在。我們今年沒有到期，明年有限的財產級別到期，2025 年沒有公司到期，我們的生產線有足夠的能力在 12 月 27 日到期，因此我們不必在當前的敵對市場中融資。

Thank you. And now over to Michael to cover the financials and the market.

謝謝。現在請邁克爾介紹財務和市場。

Thank you, Steve, and good morning, everyone.

謝謝你，史蒂夫，大家早上好。

During our last earnings call, we said that we expect 2023 comparable FFO to be down from 2022 and provided the known impact of certain items totaling a $0.55 reduction, primarily from the effect of rising interest rates. Though the current economic environment makes forecasting more difficult than usual, this remains a decent assumption, absent the impact of any asset sales. As expected, first quarter comparable FFO as adjusted was $0.60 per share compared to $0.79 for last year's first quarter, a decrease of $0.19 or 24.1%. This decrease was driven primarily by higher net interest expense from increased rates. Our company-wide same-store cash NOI for the first quarter increased by 1.5% over the prior year's first quarter. We have provided a quarter-over-quarter bridge in our earnings release and in our financial supplement. Our core office and retail businesses remain resilient with long-term credit leases.

在我們上次的財報電話會議上，我們表示我們預計 2023 年的可比 FFO 將低於 2022 年，並提供了某些項目的已知影響，總計減少 0.55 美元，主要是由於利率上升的影響。儘管當前的經濟環境使預測比平時更加困難，但這仍然是一個不錯的假設，沒有任何資產出售的影響。正如預期的那樣，第一季度經調整的可比 FFO 為每股 0.60 美元，而去年第一季度為 0.79 美元，下降 0.19 美元或 24.1%。這一下降主要是由於利率上升導致淨利息支出增加。我們第一季度全公司範圍內的同店現金 NOI 比去年第一季度增長了 1.5%。我們在收益發布和財務補充中提供了一個季度對比橋樑。我們的核心辦公和零售業務通過長期信貸租賃保持彈性。

Now turning to leasing markets. Amidst the backdrop of interest rate volatility and recessionary concerns, we remain encouraged by the level of activity year-to-date. Leasing activity has been led by strong demand from traditional industries, financial services and law firms, in particular, with many financial firms growing their footprint and accounting for 40% of the 7.4 million square feet leased in the first quarter. The availability rate of newly constructed properties has substantially declined with much of the new trophy space now largely absorbed at record level rents.

現在轉向租賃市場。在利率波動和經濟衰退擔憂的背景下，我們仍然對今年迄今為止的活動水平感到鼓舞。租賃活動受到傳統行業、金融服務和律師事務所的強勁需求的帶動，尤其是許多金融公司的足跡不斷擴大，佔第一季度 740 萬平方英尺租賃面積的 40%。新建物業的可用率大幅下降，大部分新的獎杯空間現在大部分都以創紀錄的租金水平被吸收。

Tenants in the market are increasingly focused on the highest quality redeveloped Class A buildings that are well amenitized, have strong sponsorship in our near transportation in Midtown and on the West side, which is resulting in rents moving up in these buildings. Our office portfolio is filled with these types of buildings. Companies are clearly willing to pay more for the right work environment that they believe will help them retain and attract talent as well as motivate their employees back to the office.

市場上的租戶越來越關注最高質量的重建 A 級建築，這些建築設施齊全，在我們中城和西區的附近交通方面有強大的讚助，這導致這些建築的租金上漲。我們的辦公室組合中充滿了這些類型的建築。公司顯然願意為合適的工作環境支付更多費用，他們認為這樣可以幫助他們留住和吸引人才，並激勵員工重返辦公室。

While there is solid activity in the market, large requirement deal flow is lagging and concessions remain stubbornly high. Focusing on our portfolio, during the first quarter, we completed 22 leases totaling 777,000 square feet with healthy metrics, including starting rents at $101 per square foot and a positive mark-to-market of 1.7% cash and 8.5% GAAP. This included our full building 585,000 square foot deal with Citadel at 350 Park Avenue and 82,000 square feet at PENN1 at $92 starting rents. If we exclude the Citadel deal from our statistics, our team completed 21 leases totaling 192,000 square feet at $83 starting rents with a very strong cash mark-to-market of 13.1%.

儘管市場活動活躍，但大量需求交易滯後，讓步率居高不下。專注於我們的投資組合，在第一季度，我們完成了 22 項租賃，總面積為 777,000 平方英尺，指標良好，包括每平方英尺 101 美元的起始租金以及 1.7% 現金和 8.5% GAAP 的正市值。這包括我們在公園大道 350 號與 Citadel 簽訂的 585,000 平方英尺的完整建築交易和 PENN1 的 82,000 平方英尺的交易，起價為 92 美元。如果我們從統計數據中排除 Citadel 交易，我們的團隊以 83 美元的起始租金完成了 21 項總面積為 192,000 平方英尺的租賃，現金市值率為 13.1%。

We are continuing to experience good momentum in the PENN District with a steady stream of new leases at PENN1 at ever-increasing rents, now in the high 90s and reaching $100 per square foot in the buildings tower floors, reflecting tenant's attraction to the unique amenity offering we have in the most successful location in the city.

我們在 PENN 區繼續保持良好的發展勢頭，PENN1 的新租約源源不斷，租金不斷上漲，目前已達到 90 年代的高位，塔樓樓層達到每平方英尺 100 美元，反映出租戶對獨特便利設施的吸引力提供我們在城市最成功的位置。

Tour activity is picking up with PENN2 as well now. The project is nearing completion, and tenants can better appreciate the redeveloped product. Overall, we have very good activity of many of our assets, generally at higher rents than a year ago. Our leasing pipeline in New York remains healthy. We have more than 400,000 square feet of leases in negotiation, plus an additional 1.4 million square feet in our leasing pipeline. Much of this activity is at buildings where we have significant move-outs this year and next. The financial sector in particular, continues to be active. With that, I'll turn it over to the operator for Q&A.

PENN2 的巡迴活動現在也在增加。該項目已接近完工，租戶可以更好地欣賞重新開發的產品。總的來說，我們的許多資產都非常活躍，租金普遍高於一年前。我們在紐約的租賃管道保持健康。我們有超過 400,000 平方英尺的租約正在談判中，另外還有 140 萬平方英尺的租賃計劃。大部分活動都在今年和明年我們有大量搬遷的建築物中進行。尤其是金融部門，繼續活躍。有了這個，我會把它交給接線員進行問答。

(Operator Instructions) Our first question comes from Steve Sakwa with Evercore.

（操作員說明）我們的第一個問題來自 Evercore 的 Steve Sakwa。

Steve, I appreciate the comments on the dividend and the additional color there. I just want to make sure when you talk about going on offense, does that really just mean buybacks? Or could that include potentially buying buildings as well? Or is buyback is really the only thing on the table at this point?

史蒂夫，我很欣賞關於股息和那裡的額外顏色的評論。我只是想確定當你談論進攻時，這真的只是意味著回購嗎？或者這是否也包括潛在的購買建築物？或者回購真的是目前唯一擺在桌面上的東西嗎？

Buybacks are much -- the best value is in buying back our stock. So we will focus on our stock at the expense of buying a building here and there. If we buy a building that used to be $1,000 a foot for $700 a foot, that potential tails in relation to the value that we see in our stock.

回購很多——最好的價值是回購我們的股票。因此，我們將專注於我們的股票，而不是到處購買建築物。如果我們以每英尺 700 美元的價格購買一棟曾經每英尺 1,000 美元的建築物，那麼與我們在股票中看到的價值相關的潛在尾巴。

Great. And then as a follow-up, Michael, I was just wondering if you could maybe talk about the leasing dynamics sort of between PENN2 and PENN1. It sounds like with the renovation at PENN1, you're getting really good traction at the triple-digit rents you sort of talked about when you did the redevelopment. And I'm just curious, are you getting closer to getting some tenants in secured at PENN2 as that project kind of nears completion by the end of this year? Or I guess, what's the holdup on getting leases signed to PENN2.

偉大的。然後作為後續行動，邁克爾，我只是想知道你是否可以談談 PENN2 和 PENN1 之間的租賃動態。聽起來，在 PENN1 的翻新中，您在進行重建時談到的三位數租金確實獲得了很好的吸引力。我很好奇，隨著該項目在今年年底接近完成，您是否更接近於讓一些租戶在 PENN2 得到保障？或者我想，與 PENN2 簽訂租約有什麼阻礙。

Steve, it's Glen. So yes, PENN1 is on fire. Leasing activity is strengthening really week-to-week, great tenants, financial technology accounting, consulting and rents are now piercing $100. So we're really pleased how PENN1 is coming along. And really, as PENN2 unfurls month-to-month, the project is looking better, better and better, it is an amazing product we're delivering. And as the PENN1 activity continues to strengthen, that seamlessly flows in the PENN2 action. So we now have tenants who are getting boxed out of PENN1, looking at PENN2. Our tour activity is higher than ever right now with PENN2, some large activities, some single double 2-floor activity. The building will lease. It is the best product available in the market. It is in a perfect location. It is at transportation with amenities like no one else has. So we're supremely confident in the product, and we look forward to great success leasing-wise.

史蒂夫，是格倫。所以是的，PENN1 著火了。租賃活動每週都在加強，優秀的租戶、金融技術會計、諮詢和租金現在已突破 100 美元。所以我們真的很高興 PENN1 的進展如何。事實上，隨著 PENN2 逐月展開，該項目看起來越來越好，越來越好，這是我們正在交付的一個了不起的產品。隨著 PENN1 活動的不斷加強，PENN2 行動也將無縫銜接。因此，我們現在有租戶被趕出 PENN1，看 PENN2。我們的旅遊活動現在比以往任何時候都多，有 PENN2，一些大型活動，一些單人雙 2 層活動。該建築物將出租。它是市場上最好的產品。它是在一個完美的位置。它的交通便利，其他任何地方都沒有。所以我們對產品非常有信心，我們期待在租賃方面取得巨大成功。

Hang on for one moment. You should know that earlier, we had the opportunity to lease the (inaudible) floors, but half of the (inaudible) floors to 2 different prospects, important companies, and we turned them down. So we have a great deal of confidence in the product and the building, as Glen says, the building will lease.

等一下。你應該知道，早些時候，我們有機會租用（聽不清）樓層，但一半（聽不清）樓層租給了 2 個不同的潛在客戶，重要的公司，我們拒絕了他們。所以我們對產品和建築物很有信心，正如格倫所說，建築物將出租。

Our next question comes from Alexander Goldfarb with Piper Sandler.

我們的下一個問題來自 Alexander Goldfarb 和 Piper Sandler。

So two questions. First, Steve, you guys recently, in your third quarter call, you outlined the potential to resize the dividend which you guys did. And then a few months later, decided to suspend it. Obviously, the rate environment has remained up and to the right, the office leasing, the capital needs of the company, everything else sort of stayed the same. So what changed in your view, the Board's view between deciding to resize the dividend from $0.53 quarterly to the $0.375 to then suspending it? I'm just trying to figure out what changed because of the macro and the leasing fundamentals and the balance sheet all seem to be the same.

所以兩個問題。首先，史蒂夫，你們最近在第三季度電話會議上概述了調整你們所做的股息規模的可能性。然後幾個月後，決定暫停它。顯然，利率環境一直保持向右，辦公室租賃、公司的資本需求以及其他一切都保持不變。那麼，在您看來，董事會在決定將股息從每季度 0.53 美元調整為 0.375 美元，然後暫停派息之間的看法發生了什麼變化？我只是想弄清楚由於宏觀和租賃基本面以及資產負債表而發生的變化似乎都是一樣的。

Alex, actually, you're correct. Nothing changed. The only thing that really changed was that our stock went down 35% from, as I said in my remarks, from a low level to an even lower level. We put our heads together and we decided that after years and years of avoiding buying back stock for lots of very good logical financial reasons, we decided that the time was now. We consider buying back stock to be an offensive move. And we decided that we were going to buy back stock. So that's the first point. We think the value is there. We think it's -- by the way, I'm not calling a bottom. What I am saying is that our company is going to devote financial resources to buying back stock. So that's the first thing, and we announced it.

亞歷克斯，實際上，你是對的。沒有改變。唯一真正改變的是，正如我在發言中所說，我們的股票從低水平跌至更低水平 35%。我們集思廣益，我們決定，在出於許多非常合乎邏輯的財務原因避免回購股票多年之後，我們決定現在是時候了。我們認為回購股票是一種冒犯性的舉動。我們決定回購股票。這是第一點。我們認為價值就在那裡。我們認為這是 - 順便說一下，我並不是說觸底。我的意思是我們公司要投入財力回購股票。所以這是第一件事，我們宣布了它。

By the way, it was a little awkward for us to announce a stock buyback in a dividend press release, but nonetheless, we thought that they matched together. They were a payer. So that's the stock. We're going to buy back stock. We consider that to be an offensive move, and we're very excited about it.

順便說一句，我們在股息新聞稿中宣布股票回購有點尷尬，但儘管如此，我們認為它們是匹配的。他們是付款人。這就是股票。我們打算回購股票。我們認為這是一種冒犯性的舉動，我們對此感到非常興奮。

Now the next question is the dividend, and where do we get the resources to buy (inaudible). Well, the first question is that the taxable income is moving around. Things are changing. We will be selling assets presumably, we have -- we cannot yet predict how much the asset sales will be, what will be the taxable income from them. We just don't know yet. So that's the first thing. The second is that we announced in the dividends of these that we will pay the dividend at the end of the year as we must, but we don't consider suspending the dividend or postponing the dividend for 2 quarters to be a big deal. Maybe you do, but actually I don't. We will pay the dividend as we must in the fourth quarter, and we will pay the dividend in whatever the appropriate size is. So that's one unknown.

現在下一個問題是股息，我們從哪裡獲得購買資源（聽不清）。好吧，第一個問題是應稅收入在變化。事情正在發生變化。我們大概會出售資產，我們已經 - 我們還無法預測資產出售的數量，以及它們的應稅收入。我們只是還不知道。所以這是第一件事。二是我們在這幾家的分紅中宣布，我們必須在年底支付分紅，但我們不認為暫停分紅或推遲2個季度分紅是一件大事。也許你會，但實際上我不會。我們將在第四季度支付我們必須支付的股息，我們將以適當的規模支付股息。所以這是一個未知數。

The second unknown is we announced that we would pay it either in cash or in a combination of cash and script. I think that it's not impossible that we will pay the dividend being script. I'm not making a prediction, but I'm saying we are retaining that option. Why? We believe that a shareholder received stock in lieu of cash and the dividend should be indifferent. It's exactly the same. You can sell the stock and turn it into cash, et cetera. So we believe that it is -- by the way, a sort of humorous, we did spend a significant amount of time in our council room and in our board room going round and round on, let's just think about this. We're going to be perhaps issuing stock in lieu of cash for the dividend, but we're going to be buying back stock, isn't that circular?

第二個未知數是我們宣布我們將以現金或現金和腳本的組合方式支付。我認為我們將按劇本支付股息並非不可能。我不是在做預測，但我是說我們保留了這個選項。為什麼？我們認為，股東收到的是股票而不是現金，股息應該無關緊要。完全一樣。您可以出售股票並將其變成現金，等等。所以我們相信這是——順便說一句，一種幽默，我們確實在我們的會議室和董事會會議室里花了很多時間來來回回，讓我們想想這個。我們可能會發行股票代替現金來支付股息，但我們會回購股票，這不是通告嗎？

And the answer to that is no, it's not because the issuing stock for dividend is pro rata. Everybody has exactly the same percentage ownership in the company, the minute before they get the stock and the minute after they get that stock. When a buyback, however, is discriminate because people will make a decision to sell and reduce their percentage ownership in the company or to not sell and increase their percentage of ownership in the company. So anyway, that's -- the fact of the matter is that we will size the dividend at the year of the year, we will make a determination as to whether to pay it in all cash or part cash and stock. And if we pay it in part stock, that will go a long way to funding buybacks or whatever. So that's our thinking. I mean our thinking, it's offensive, and we think, actually, the right thing to do.

答案是否定的，這不是因為發行股票分紅是按比例的。每個人在公司中擁有完全相同的所有權百分比，在他們獲得股票之前的那一刻和他們獲得該股票之後的那一刻。然而，如果回購是有歧視的，因為人們會決定出售並減少他們在公司的所有權百分比，或者不出售並增加他們在公司的所有權百分比。所以無論如何，事實是我們將在當年確定股息的規模，我們將決定是以全部現金還是部分現金和股票支付。如果我們以部分股票支付，那將大大有助於為回購或其他任何事情提供資金。這就是我們的想法。我的意思是我們的想法，這是冒犯性的，我們認為，實際上，做正確的事。

Yes, that segues into the next question. So I mean, obviously, you've seen your (inaudible) do a few billion. Hudson did a buyback. I mean, there's not a lot of evidence that buybacks help, but when we look at your balance sheet, it looks like you have $2.4 billion of debt where the swaps expire later this year. So my question is, wouldn't the $200 million be better spent paying down that debt? And Michael, in the $0.55 that you said this year would be down versus last year, that includes these swaps burning off? Or are these swaps burning off or incremental to that?

是的，這會引出下一個問題。所以我的意思是，很明顯，你已經看到你的（聽不清）做了幾十億美元。哈德森進行了回購。我的意思是，沒有太多證據表明回購有幫助，但當我們查看您的資產負債表時，看起來您有 24 億美元的債務，掉期將於今年晚些時候到期。所以我的問題是，將 2 億美元用於償還債務不是更好嗎？邁克爾，你說今年會比去年下降 0.55 美元，這包括這些掉期掉期？或者這些掉期交易是在燃燒還是在增加？

No, Alex, whatever is -- whatever we mentioned last quarter reflected our expectation of swaps, GAAPs, et cetera, they roll off this year. So that's in that number.

不，亞歷克斯，不管是什麼——我們上個季度提到的任何內容都反映了我們對掉期、公認會計原則等的預期，它們將在今年推出。這就是那個數字。

Alex, we have a great deal of confidence in the strength of our balance sheet. We think that our maturities are well laddered. We think that most of our debt -- the vast majority of our debt is nonrecourse, and that's a crucial and very important element in the strength of our balance sheet. We obviously will consider management of our debt in contrast to buying back our stock each time we get into the situation of making that choice. We have confidence that we will make the right decision by the way.

亞歷克斯，我們對資產負債表的實力充滿信心。我們認為我們的成熟度很好。我們認為我們的大部分債務——絕大多數債務是無追索權的，這是我們資產負債表實力的關鍵和非常重要的因素。顯然，每次我們做出這種選擇時，我們都會考慮管理我們的債務，而不是回購我們的股票。我們有信心順帶做出正確的決定。

By the way, one last point, okay? There's no other company that I'm aware of that is spending multiple billions of dollars on (inaudible).

順便說一句，最後一點，好嗎？據我所知，沒有其他公司在（聽不清）上花費數十億美元。

Our next question comes from Michael Griffin with Citi.

我們的下一個問題來自花旗的邁克爾格里芬。

Maybe just piggybacking on Goldfarb's question there about the stock buybacks. I mean, Steve, you just used the phrase, I'm not calling the bottom. I guess what gives you the confidence that the stock is trading so cheaply relative to your expectation, right? We've known that office NAVs relative to the stock price have been pretty materially depressed recently, but your share price relative to GFC times is down 30-plus percent from the beginning of '09. So -- have you done some analysis, is there really some kind of thought behind it? Or is there a worry that this could be an attempt to catching a falling knife, so to speak.

也許只是順應 Goldfarb 那里關於股票回購的問題。我的意思是，史蒂夫，你剛剛用了這句話，我不是在打電話給底部。我想是什麼讓你相信股票的交易價格相對於你的預期如此便宜，對吧？我們知道最近辦公室 NAV 相對於股價的大幅下跌，但你的股價相對於 GFC 時間比 09 年初下跌了 30% 以上。那麼——你做了一些分析嗎，它背後真的有某種想法嗎？或者有人擔心這可能是為了接住掉落的刀，可以這麼說。

It's Michael. The answer is when I think what Steve said he's not calling the bottom. I think that commentary relates to the macro environment is likely going to remain choppy near term. The Fed appears to be coming to the end of their tightening cycle. But it's not definitive.

是邁克爾。答案是當我認為史蒂夫所說的他並沒有觸底時。我認為與宏觀環境相關的評論在短期內可能會保持波動。美聯儲的緊縮週期似乎即將結束。但這不是確定的。

We don't know whether rates will stay higher for a more extended period of time. But I think as we evaluate the company and we look at the price throughout the intrinsic asset value even on a stress case, we think it is heavily discounted, right? So we think that the pricing has become irrational. Every day, there's negativity about office in the media. And some of that's warranted, but we think that's the whipping boy for today. And so that's going to continue. And that obviously has an effect on sentiment. And so it's gotten a bit extreme, right? And I think our action is a reflection of that. And as we stress the valuation and we have, we think there is a significant margin still.

我們不知道利率是否會在更長的時間內保持較高水平。但我認為，當我們評估公司時，即使在壓力情況下，我們也會在整個內在資產價值中查看價格，我們認為它被大幅打折，對吧？所以我們認為定價已經變得不合理了。每天，媒體上都有關於辦公室的負面消息。其中一些是有道理的，但我們認為這是今天的替罪羊。所以這將繼續下去。這顯然對情緒有影響。所以它變得有點極端，對吧？我認為我們的行動反映了這一點。當我們強調估值時，我們認為仍有很大的利潤空間。

That's helpful. And then maybe just one on leasing for Glen. I guess, ex Citadel this quarter was about 200,000 square feet of leasing. Was there anything really driving that? And then do you have any big updates on, I guess, the move out at 770 Broadway and then I think there's potential expiration at 1290 AOA. I think it's with [AXE] Advisors, but if you could just update us on that, that would be great.

這很有幫助。然後也許只是一個關於格倫租賃的問題。我猜，本季度前 Citadel 的租賃面積約為 200,000 平方英尺。有什麼真正的驅動力嗎？然後你有什麼大的更新嗎，我想，在 770 Broadway 搬出，然後我認為在 1290 AOA 可能到期。我認為它與 [AXE] 顧問有關，但如果你能向我們介紹最新情況，那就太好了。

Yes, sure. So the color on the 200,000 feet that we leased outside of Citadel was substantially PENN1 and then some strong financial service deals at our Plaza District buildings with rents that started $83 a foot cash mark-to-market of 13% ...

是的，當然。因此，我們在 Citadel 以外租用的 200,000 英尺的顏色基本上是 PENN1，然後在我們的 Plaza District 建築物中進行了一些強大的金融服務交易，租金起價為每英尺 83 美元，現金按市價計價 13% ...

(technical difficulty)

（技術難度）

This is your conference operator. Please proceed. It seems we had a bit of interference. The main speaker line is connected. Please proceed with your response.

這是您的會議接線員。請繼續。看來我們受到了一些干擾。主揚聲器線路已連接。請繼續您的回复。

So that was the first quarter known to Citadel activity. As it relates to 1290, 770 and other expirations this year and '24, we're obviously in the market, and we're seeing very strong demand for those properties. If you think about the portfolio, we think it's the strongest in the city and those buildings particularly have underwent great redevelopments in the past. We're adding some of our work life amenity programs to those assets currently on the board being drawn up. So a lot of our pipeline is at the 1290, the 770s, the 280 parks, the PENN1, et cetera. So we're out there. We're already in paper on a lot of space and some of those assets, and I feel good about those properties and those spaces coming back in terms of making matches with the tenants or in demand in the market right now.

所以那是 Citadel 活動已知的第一季度。由於它涉及今年和 24 年的 1290、770 和其他到期日，我們顯然在市場上，我們看到對這些房產的需求非常強勁。如果您考慮投資組合，我們認為它是該市最強大的，尤其是那些建築物在過去經歷了巨大的重建。我們正在將我們的一些工作生活便利設施計劃添加到董事會目前正在製定的那些資產中。所以我們的很多管道都在 1290、770s、280 公園、PENN1 等等。所以我們在那裡。我們已經在紙上寫下了很多空間和其中一些資產，我對這些房產和那些空間在與租戶進行匹配或目前市場需求方面的回歸感到滿意。

And Griff, I may just add to that, and I think I mentioned this in my opening remarks. If you look at what's happened in the market, right? The new trophy space that was delivered, which has seen record rents, significant demand, that's largely spoken for. And I think we talked last quarter about a broadening out of tenant activity. Not everybody wants to pay high $100, $200 a square foot rents, well-located, redeveloped assets near the transit hubs are what is seeing that demand. So the buildings where we have holes in them, the 280s, the 1290s, et cetera, we're seeing very good tenant activity there, and rents are starting to move up in those assets. And I think that's important, right?

格里夫，我可以補充一點，我想我在開場白中提到了這一點。如果你看看市場上發生了什麼，對嗎？交付的新獎杯空間，租金創歷史新高，需求旺盛，這在很大程度上得到了認可。我認為我們上個季度談到了擴大租戶活動。並不是每個人都願意支付每平方英尺 100 美元、200 美元的高額租金，交通樞紐附近位置優越、重建的資產正是看到這種需求的原因。因此，我們在其中存在漏洞的建築物，280 年代，1290 年代等等，我們看到那裡的租戶活動非常好，這些資產的租金開始上漲。我認為這很重要，對吧？

Concessions are high, but rents are starting to move up in these other assets because there's such a delta between the new buildings and these redeveloped assets that are well located. Proximity to transit is critical. Obviously, the state of the building is important. But that's a continuing trend we're seeing and we're pleased with the activity at a number of our assets that are consistent with that theme.

特許權很高，但這些其他資產的租金開始上漲，因為新建築與這些位置優越的重建資產之間存在這樣的三角洲。靠近交通是至關重要的。顯然，建築物的狀態很重要。但這是我們看到的持續趨勢，我們對與該主題一致的許多資產的活動感到滿意。

Our next question comes from John Kim with BMO Capital.

我們的下一個問題來自 BMO Capital 的 John Kim。

I wanted to follow up on the dividends and the circular aspect of suspending it at this time. Two questions on that. One, do you anticipate your share count will be reduced by the year-end? And two, when you decide whether or not to pay the dividend in scrip, are you committed to only issue it at a higher share price than where you're buying it back at.

我想在這個時候跟進股息和暫停它的循環方面。有兩個問題。第一，你預計你的股票數量會在年底前減少嗎？第二，當你決定是否以股票形式支付股息時，你是否承諾只以比你回購時更高的股價發行。

John, I think that we anticipate the share count being -- I think it all depends on the execution of the buyback, right? We're going to monitor the marketplace and decide when to execute, how to execute. So I think it's difficult to answer your first question today. Obviously, the dividend wouldn't get paid out until year-end. So likelihood is the share capital to go down and then back up, (inaudible) in terms of similar, we increased the stock dividend. And then issuance, again, when it comes to year-end and we evaluate how to pay it, everything will be taken into consideration. We'll evaluate the cash versus scrip component and decide that time based on what we bought back and how much are you generated from asset sales, et cetera, et cetera, what's the right mix. Too early to answer all those things.

約翰，我認為我們預計股票數量是——我認為這完全取決於回購的執行，對吧？我們將監控市場並決定何時執行、如何執行。所以我認為今天很難回答你的第一個問題。顯然，股息要到年底才能支付。因此，股本可能會下降然後回升，（聽不清）類似地，我們增加了股票股息。然後再一次發行，到了年底，我們會評估如何支付，一切都會被考慮在內。我們將評估現金與股票的組成部分，並根據我們回購的資產以及您從資產出售中產生的收益等來決定時間，什麼是正確的組合。回答所有這些事情還為時過早。

It just seems like if you're buying it back at a -- sorry, go ahead.

好像如果你要買回來 - 對不起，繼續吧。

So I'm remote and my equipment stinks. So sorry, I cut out one back. The reason for the pause in the dividend is to give us time to evaluate all of those things that Michael just mentioned.

所以我很偏遠，我的設備很臭。很抱歉，我剪掉了一個。暫停分紅的原因是讓我們有時間評估邁克爾剛才提到的所有這些事情。

I was just going to say it makes sense to buy back at these levels, I suppose, at a 10% implied cap rate or so. But then if you issue it back at 10%, then it doesn't really make an impact. But my second question is...

我只是想說，在這些水平上回購是有意義的，我想，以 10% 左右的隱含上限率回購。但是，如果您以 10% 的比例返還，那麼它並沒有真正產生影響。但我的第二個問題是...

Hold it, John. John, it does for an individual, hold it. If you -- all that's pro rata, as Steve said, if you hold (inaudible) you own more or the company (inaudible).

堅持住，約翰。約翰，它對個人來說確實如此，持有它。如果你——所有這些都是按比例的，正如史蒂夫所說，如果你持有（聽不清）你擁有更多或公司（聽不清）。

Got it, okay. My second question is on the leasing pipeline. I think...

知道了，好的。我的第二個問題是關於租賃管道。我認為...

John, as I said, that's a circular argument which we spend a great deal of time on in our council room and even in our boardroom. But the issuance is pro rata. You own exactly to the penny, the same percentage ownership of the company that you used to own, you have a few more shares, but it's the same percentage ownership, whereas the buyback is the opposite of pro rata.

約翰，正如我所說，這是一個循環論證，我們在我們的會議室甚至我們的董事會會議室中花費了大量時間。但發行是按比例的。你擁有一分錢，與你過去擁有的公司相同的百分比所有權，你有更多的股份，但它是相同的百分比所有權，而回購與按比例相反。

Right, okay. My second question is on your leasing pipeline. I think, Michael, you mentioned 400,000 square feet of negotiations currently. I wanted to see how that compared versus the last quarter. I think you mentioned last time it was 1.2 million square feet, 275,000, being finalized. I know those terms are a little bit different. But apples-to-apples, where does your pipeline compare today versus a few months ago?

對，好吧。我的第二個問題是關於您的租賃管道。我認為，邁克爾，您目前提到了 400,000 平方英尺的談判。我想看看這與上一季度相比如何。我想你上次提到它是 120 萬平方英尺，即 275,000，正在最終確定。我知道這些術語有點不同。但是，從同類到同類，您的管道與幾個月前相比有何不同？

It's Glen. Well, John, I would say very consistent. So when we talk about 400,000 feet out, that leases documents in negotiation, where the term sheets are final and the lease documents to be negotiated. The additional 1.4 million feet are deals that we're speaking with brokers and tenants, we have proposals in the house. We've responded to those proposals, and we have arrhythmic back and forth on the deal making. So it's consistent, I think, quarter-to-quarter, what we're seeing mainly the activity is financial service and law firms in that pipeline. But across the board, I'd say the rhythm of the dealmaking the tenant demand the tours have been consistent for the last, call it, 2 to 3 quarters.

是格倫。好吧，約翰，我會說非常一致。因此，當我們談論 400,000 英尺外時，即談判中的租賃文件，其中條款清單是最終的，租賃文件有待談判。額外的 140 萬英尺是我們正在與經紀人和租戶討論的交易，我們在房子裡有建議。我們已經對這些提議做出了回應，並且我們在交易制定方面來回不穩。因此，我認為，每個季度都是一致的，我們看到的主要是該管道中的金融服務和律師事務所。但總的來說，我想說租戶要求旅遊的交易節奏在過去 2 到 3 個季度是一致的。

And can you break that out geographically?

你能在地理上打破它嗎？

I would say between PENN and Midtown for us pretty well averaged out between the 2 submarkets. And in Midtown, mainly the Plaza District buildings would attract the financial service tenants.

我會說在 PENN 和 Midtown 之間，我們在 2 個子市場之間取得了很好的平均。而在中城，主要是廣場區的建築會吸引金融服務租戶。

Next question comes from Camille Bonnel with Bank of America.

下一個問題來自美國銀行的 Camille Bonnel。

Could we touch on the financing market? We've been hearing over recent weeks that the credit spreads have moved higher since the issues around regional banks, but notice you completed a refi on Rosslyn Plaza this month and the spread came in slightly lower. Was this a surprise or more of a reflection of other characteristics of the loan?

我們可以談談融資市場嗎？最近幾週我們一直聽說，自從區域銀行出現問題以來，信用利差已經走高，但請注意，您本月完成了羅斯林廣場的再融資，利差略有下降。這是對貸款其他特徵的意外反映嗎？

Michael?

邁克爾？

Yes. Camille, look, I think every asset is an individual situation, right? It's -- so in that particular situation, it's not a large loan, we delevered it a bit. And our job is to find the best lenders for each situation. So it was a good execution. As a general matter, I get your first comment, the markets are challenging. Spreads have widened out. But again, asset-dependent and sponsor dependent, there is capital out there. It's not robust by any measure, but there is capital out there for the right sponsors, right assets. And with good term or the right loan-to-value levels, the spreads albeit wider than a couple of years ago are still okay. I think it's where you have assets that are higher levered or where there's much more volatility in the income stream near term where it's more challenging. So I think Rosslyn was a small asset, good execution and reflective of high quality location.

是的。卡米爾，你看，我認為每項資產都是一種個人情況，對吧？它是 - 所以在那種特殊情況下，這不是一筆大額貸款，我們將其去槓桿化了一點。我們的工作是為每種情況找到最好的貸款人。所以這是一個很好的執行。一般來說，我收到你的第一條評論，市場充滿挑戰。利差擴大了。但同樣，資產依賴和讚助商依賴，那裡有資本。以任何標準衡量它都不是穩健的，但有合適的讚助商和合適的資產的資金。在良好的期限或正確的貸款價值比水平下，利差雖然比幾年前大，但仍然可以。我認為這是你擁有更高槓桿資產的地方，或者是近期收入流波動性更大的地方，更具挑戰性。所以我認為 Rosslyn 是一個小資產，執行力好，反映了高質量的位置。

My take on this, Camille, is markets are extremely hostile, this is the time and the cycle where your best to not have to refinance or finance. If you have to finance, you're at a huge disadvantage. And one of the things that I like about our strategy is we have very little that we have to finance. So especially with our cash hoard, which is financing our PENN construction, so the markets are really hostile and the best bid is just stay out of them.

卡米爾，我對此的看法是市場非常敵對，這是你最好不必再融資或融資的時間和周期。如果你必須融資，你將處於巨大的劣勢。關於我們的戰略，我喜歡的一件事是我們幾乎沒有什麼可以融資的。因此，尤其是我們的現金儲備，為我們的 PENN 建設提供資金，所以市場真的充滿敵意，最好的出價就是遠離它們。

You were cutting out a bit, Steve, but I think I got parts of your message. So thank you. And then just switching, in the last quarter, Glen talked about the opportunity of converting showroom space at theMART to office. I was wondering how that specific business plan is progressing and how interest has been tracking so far into April.

史蒂夫，你打斷了一點，但我想我明白了你的部分信息。所以謝謝。然後只是轉換，在上個季度，格倫談到了將 theMART 的陳列室空間轉換為辦公室的機會。我想知道那個具體的商業計劃是如何進展的，以及到目前為止到 4 月份的興趣如何。

So the casual business departed for Atlanta in the fourth quarter, we're now preparing that space for office leasing. And in general, we have a pretty good pipeline in Chicago. Our amenity program will be complete by June. We're going to be out there with NeoCon and another broker event this summer, which we're looking forward to, to really bring the program out to the market. So the pipeline is good in Chicago, if the market is tough. There's not a huge a lot of tenant demand and particularly not a large tenant demand except at the present. Our showroom business continues to perform. We've leased about 60,000 feet this quarter at $60 starting rent on the showroom business.

因此，休閒業務在第四季度離開了亞特蘭大，我們現在正在為辦公室租賃準備這個空間。總的來說，我們在芝加哥有一個很好的管道。我們的便利設施計劃將於 6 月完成。今年夏天，我們將與 NeoCon 和另一場經紀人活動一起出現，我們期待著將這個項目真正推向市場。因此，如果市場艱難，芝加哥的管道很好。除了目前，租戶需求並不大，特別是租戶需求不大。我們的陳列室業務繼續表現。本季度我們以 60 美元的起租價租賃了約 60,000 英尺的展廳業務。

The office business, we've leased over 0.5 million feet of office the last 3 years. We have modest expirations in the next 3 years. we're grinding out the office. We're getting looks from all the majors. We're in very solid discussions now with a couple of tenants looking to move their headquarters to theMART. So it's starting to feel better, but certainly tough conditions in Chicago as we sit here.

辦公室業務，我們在過去 3 年租用了超過 50 萬英尺的辦公室。我們在接下來的 3 年內會適度到期。我們正在清理辦公室。我們得到了所有專業人士的關注。我們現在正在與一些希望將其總部遷至 theMART 的租戶進行非常深入的討論。所以它開始感覺好多了，但當我們坐在這裡時，芝加哥的條件肯定很艱難。

Our next question comes from Julien Blouin with Goldman Sachs.

我們的下一個問題來自高盛的 Julien Blouin。

I wanted to go back maybe to the potential for asset sales. I know on the last call, I think the comment was that you didn't foresee being able to delever via asset sales for the next 24 months. But now it sounds like you see a real potential for asset sales this year. Has your thinking changed at all? Is it really down to maybe the share price and now thinking that even at sort of distressed pricing, you can get some accretion from repurchasing shares. Just curious to sort of get your thoughts on that.

我想回到資產出售的潛力。我知道在上次電話會議上，我認為評論是您沒有預見到能夠在接下來的 24 個月內通過資產出售來減少槓桿。但現在聽起來您似乎看到了今年資產出售的真正潛力。你的想法有沒有完全改變？是否真的取決於股價，現在認為即使以某種令人沮喪的價格，您也可以通過回購股票獲得一些收益。只是想知道您對此有何想法。

Michael?

邁克爾？

Yes, Julien, I had seen you or, I guess, (inaudible) note. And I was a little surprised by the comment about no assets over the next 24 months. I don't think we said that on the last call. I think we've said it's a more difficult market to sell assets in. But I don't think we said we weren't going to try to sell assets. I think we've said we're going to be targeted and recognize that you have to be realistic and thoughtful about what do you sell. So I don't know that our outlook has changed that significantly. It continues to be a difficult market to sell assets in. We think we have some that as we think about which assets we want to sell, it's a mix of (inaudible) office assets. We do think they're salable. And I think your -- I think your comments sort of at the end of that while the market may not be strong or as strong as it was, and pricing has been impacted, our share price has been impacted more. So I think that's exactly right, right?

是的，朱利安，我見過你，或者，我猜，（聽不清）筆記。我對未來 24 個月內沒有資產的評論感到有些驚訝。我不認為我們在上次電話會議上這麼說過。我認為我們已經說過出售資產是一個更困難的市場。但我不認為我們說過我們不會嘗試出售資產。我想我們已經說過我們將成為目標，並認識到你必須對你銷售的產品保持現實和深思熟慮。所以我不知道我們的前景是否發生了重大變化。出售資產仍然是一個困難的市場。我們認為，當我們考慮要出售哪些資產時，我們有一些資產，它是（聽不清）辦公資產的組合。我們確實認為它們很暢銷。而且我認為你的 - 我認為你的評論有點在那結束時雖然市場可能不那麼強勁或像以前那樣強勁，並且定價受到影響，但我們的股價受到的影響更大。所以我認為這是完全正確的，對吧？

We may not love the price of some assets today relative to where they were a few years ago. But relative to our stock price, we do like that pricing. So the answer is, we're not a forced seller. We don't have to sell anything. We're going to be targeted, we think we can execute some sales. We have some dialogues going on certain assets. We're going to pursue sales on a couple of other things that probably were not in our thing a little bit earlier in the year.

相對於幾年前的價格，我們可能不喜歡今天某些資產的價格。但相對於我們的股價，我們確實喜歡這種定價。所以答案是，我們不是強迫賣家。我們不必出售任何東西。我們將成為目標，我們認為我們可以執行一些銷售。我們就某些資產進行了一些對話。我們將在今年早些時候可能不在我們的範圍內的其他一些事情上進行銷售。

And our expectation is we're going to be able to execute on some of that. But given the uncertainty in the market, I'm not going to guarantee it, and nor are we going to be forced to sell anything. So we'll see how the rest of the year plays out, but it is our intent to try to execute on some of those sales.

我們的期望是我們將能夠執行其中的一些。但鑑於市場的不確定性，我不會保證，我們也不會被迫出售任何東西。因此，我們將看看今年剩餘時間的表現如何，但我們打算嘗試執行其中的一些銷售。

Our next question comes from Daniel Ismail with Green Street.

我們的下一個問題來自 Green Street 的 Daniel Ismail。

Just touching on the asset sales. I guess, do you guys have anything in the market today? And if you could provide sort of further detail or color on sort of what sort of the profile of these assets are. Should we expect these to be some of the higher quality properties with long wall.

僅涉及資產銷售。我想，你們今天市場上有什麼東西嗎？如果您可以提供更多關於這些資產的概況的詳細信息或顏色。我們是否應該期望這些是一些具有長壁的高質量屬性。

Daniel, not going to get into specifics. The answer is we have discussions going on a few assets. This is not generally in market that you blast things out. You got to focus on who has capital willing to deploy. I will say there are a number of investors who view this as an interesting time to enter New York. And in some cases, there's decent duration on the leases. In other cases, it's more traditional rollover in terms of building a certain percentage every year.

丹尼爾，我不想談細節。答案是我們正在討論一些資產。這通常不是在市場上爆破的事情。你必須關注誰有資金願意部署。我要說的是，有許多投資者認為這是進入紐約的有趣時機。在某些情況下，租約有相當長的期限。在其他情況下，就每年建立一定百分比而言，這是更傳統的展期。

And as I mentioned, it's a mix of both retail and office. So I'm not going to get any more specific to that until we have something to announce. But as I said, we do think that they're executable if you're -- if you find the right investor and you're realistic on price.

正如我提到的，它是零售和辦公的混合體。因此，在我們有消息要宣布之前，我不會對此進行更具體的說明。但正如我所說，我們確實認為它們是可執行的，如果你 - 如果你找到合適的投資者並且你在價格上是現實的。

Okay. That's helpful. And then just -- we're 3 years through the pandemic, office utilization still remains fairly low relative to the 2019 levels. I was just curious, have you guys have seen any changes with regards to how tenants are building out their space?

好的。這很有幫助。然後——我們已經度過了 3 年的大流行病，辦公室利用率相對於 2019 年的水平仍然相當低。我很好奇，你們有沒有看到租戶在建造空間方面有什麼變化？

This is Glen. Generally, I would say more collaborative collegial spaces, open workplaces like I always call it hangout spaces -- but if you look across the portfolio, generally, you're still seeing some private office mix with the traditional Cube and open areas. In terms of densification, some industry types are more dense, some seeing density they were. It's really a mixed bag. I wouldn't say a consistent layout of any industry type as you relate one to the next.

這是格倫。一般來說，我會說更多協作的大學空間，開放的工作場所，就像我一直稱之為聚會空間——但如果你縱觀整個投資組合，一般來說，你仍然會看到一些私人辦公室與傳統的 Cube 和開放區域混合在一起。就緻密化而言，一些行業類型更加密集，有些則看到了它們的密度。這真是魚龍混雜。當您將一個與下一個相關聯時，我不會說任何行業類型的一致佈局。

So generally, I don't think there's much of a new theme than what we've seen previously, other than the "hangout" collaborative collegial environment. I mean the one thing that we are focused on in terms of the workplace is what we've done in the buildings, particularly at PENN1, what we're doing at PENN2, what we've done at theMART, what we're going to do shortly at 1290 where we believe tenants want to be in these buildings because of the way we have really improved the experience when you first enter the asset. So the first experience, that impact, we think, most important, our success. When people come in, they're comfortable, they could eat, they could drink, they could hang out, they could go to the gym, whatever they're going to do, we look at it like they're coming into a concierge hotel environment. And that's how we've created these new workplaces in our portfolio, which has been working extremely well on [early tower] program.

所以總的來說，除了“聚會”協作學院環境之外，我認為沒有比我們之前看到的更多新主題。我的意思是，就工作場所而言，我們關注的一件事是我們在建築物中所做的事情，特別是在 PENN1，我們在 PENN2 正在做的事情，我們在 theMART 所做的事情，我們將要做什麼很快在 1290 做，我們相信租戶希望進入這些建築物，因為我們確實改善了您首次進入資產時的體驗。因此，我們認為最重要的是，第一次體驗會影響我們的成功。當人們進來時，他們很舒服，他們可以吃，他們可以喝，他們可以閒逛，他們可以去健身房，無論他們想做什麼，我們都像對待禮賓部一樣看待它酒店環境。這就是我們在我們的投資組合中創建這些新工作場所的方式，這些工作場所在 [early tower] 計劃中一直運作得非常好。

Our next question comes from Derek Johnston with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Derek Johnston。

Years ago in 2018, which seems like another world, you hosted Seinfeld that 555 California Street for investors. So stay with me, so Jerry's bet was about, you know me, I could be anywhere, why am I at (inaudible) San Francisco. So Steve -- look, we all know you, you could be anywhere, but you're right here, you're sticking this out, which means to us that you see a way out of this negative office REIT narrative. So I guess the question, how do you envision, what's it going to take for Vornado to get past this environment and emerge stronger.

多年前的 2018 年，這似乎是另一個世界，你在加利福尼亞街 555 號為投資者舉辦了宋飛正傳。所以和我在一起，所以傑里的賭注是，你知道我，我可以在任何地方，為什麼我在（聽不清）舊金山。所以史蒂夫 - 看，我們都認識你，你可以在任何地方，但你就在這裡，你堅持下去，這對我們來說意味著你看到了擺脫這種負面辦公室 REIT 敘述的方法。所以我猜這個問題，你如何設想，Vornado 需要什麼才能克服這種環境並變得更強大。

Well, I need to get Jerry Seifert to help me answer this question. I think it's happening now. I think the -- I think time is our friend here. I think that it's very clear that employers want their employees back in the office. They want to be able to have people working together. They want the managers to be able to manage their people. And so they have been struggling because there is a cadre of employees that don't -- that are sort of fighting coming back to the office.

好吧，我需要讓 Jerry Seifert 幫我回答這個問題。我認為它現在正在發生。我認為——我認為時間是我們的朋友。我認為很明顯，雇主希望他們的員工回到辦公室。他們希望能夠讓人們一起工作。他們希望管理者能夠管理他們的員工。所以他們一直在苦苦掙扎，因為有一群員工沒有——他們回到辦公室後有點掙扎。

I think that over time, if you go back -- if you go forward, rather, if you look out 5 or 7 years, I think we will go back to what was considered normal 5 years ago. I think time is our friend here. It's -- just to add to that, it's pretty clear, people want to be in the cities. So the apartments are full, the restaurants are full, the cities are full, the streets are full. There is a reluctance on the part of certain demographic of coming actually going to work in the office, okay? That is -- that is starting to evaporate, okay? Time is our friend.

我認為隨著時間的推移，如果你倒退——如果你前進，更確切地說，如果你展望 5 或 7 年，我認為我們將回到 5 年前被認為是正常的狀態。我認為時間是我們的朋友。它 - 只是為了補充這一點，很明顯，人們想要在城市裡。所以公寓滿了，餐館滿了，城市滿了，街道滿了。某些人群不願意真正去辦公室工作，好嗎？也就是說——它開始蒸發了，好嗎？時間是我們的朋友。

Next question comes from Vikram Malhotra with Mizuho.

下一個問題來自 Mizuho 的 Vikram Malhotra。

So just first, I wanted to clarify, you said nothing's changed between when you adjusted the dividend down a couple of months ago and then now. But I'm just sort of looking at the dividend run rate you had then and now the taxable income you're projecting, can you just help bridge what appeared to be sort of your projected taxable income run rate of, let's call it, $0.37, $0.38. And today, it's more like $0.25. I'm just wondering your debt is fixed now. I'm assuming you had outlined, I think, a $0.50 impact and that was to FFO, but you had outlined various impacts that you baked in. So I'm just trying to bridge the 2 numbers. What has changed in driving that projection lower from here? And can you just comment if that projection now includes a change in the way expirations may be renewed?

所以首先，我想澄清一下，你說幾個月前下調股息和現在之間沒有任何變化。但我只是在看你當時的股息運行率和現在你預測的應稅收入，你能不能幫助彌合你預計的應稅收入運行率，我們稱之為 0.37 美元, 0.38 美元。而今天，它更像是 0.25 美元。我只是想知道你的債務現在已經解決了。我假設你已經概述了 0.50 美元的影響，那是對 FFO 的影響，但你已經概述了你烘焙的各種影響。所以我只是想彌合這 2 個數字。從這裡開始降低該預測有什麼變化？如果該預測現在包括更新到期方式的變化，您能否發表評論？

As I said, nothing's changed. We have left room for some asset sales. By the way, if you read the [Norton Property] CFO's comment in their earnings call, you'll see basically exactly the same statement that I just made. So what I'm saying is that we rightsized the dividend, and we left room for asset sales.

正如我所說，一切都沒有改變。我們為一些資產出售留有空間。順便說一句，如果你在他們的財報電話會議上閱讀了 [Norton Property] 首席財務官的評論，你會看到基本上與我剛才所做的完全相同的聲明。所以我要說的是，我們調整了股息，並為資產出售留出了空間。

Okay. That makes sense. Yes, go ahead.

好的。這就說得通了。好，去吧。

I'm sorry, go ahead.

對不起，繼續。

So I was just going to say you talked about asset sales not knowing where pricing is or what could be achieved. But I'm just -- from your vantage point, we've seen a variety of different trades, some in New York, some in California, with handles that are -- we probably didn't think we would see this maybe a few years ago, $300, $400 a foot. Some other buildings are maybe higher, but I'm just trying to understand, a, how are you -- how are you identifying what assets to sell? And then is there a point in which you say the sale doesn't make sense given pricing. I guess I'm just trying to get a sense of where do you see values shaking across a variety of office types?

所以我只是想說你談到資產銷售時不知道定價在哪里或可以實現什麼。但我只是 - 從你的角度來看，我們已經看到了各種不同的交易，一些在紐約，一些在加利福尼亞，處理方式是 - 我們可能認為我們不會看到這可能是一些幾年前，每英尺 300、400 美元。其他一些建築物可能更高，但我只是想了解，a，你怎麼樣 - 你如何確定要出售的資產？然後有一點你說考慮到定價銷售沒有意義。我想我只是想了解一下您在哪些地方看到價值觀在各種辦公室類型中發生變化？

We're familiar with the -- what you're referring to. We are not a distressed seller. We are not a weak seller. In fact, we are selecting a -- focusing on a very select pool of assets, a few assets where we consider ourselves to be offensive sellers because the proceeds will be if we can execute, the proceeds will be invested extremely accretively. So you can count on a couple of things. We will be very selective. We are not in the wholesale selling business. And if we do -- by the way, we know how to walk away. We know how to say no. If we do execute, we will -- it will be extremely accretive.

我們熟悉 - 你指的是什麼。我們不是苦惱的賣家。我們不是弱勢賣家。事實上，我們正在選擇一個 - 專注於一個非常精選的資產池，一些我們認為自己是冒犯性賣家的資產，因為如果我們能夠執行，收益將被極其增值地投資。所以你可以指望幾件事。我們會非常有選擇性。我們不從事批發業務。如果我們這樣做——順便說一句，我們知道如何走開。我們知道如何拒絕。如果我們確實執行了，我們將——這將是極其增值的。

Our next question comes from Anthony Paolone with JPMorgan.

我們的下一個問題來自摩根大通的 Anthony Paolone。

Just on the PENN District, apologies if I've lost the thread on just the back and forth with the press in your comments. But if we look out the next couple of years, is there a way to crystallize what you intend to do or spend beyond what's underway right now with the buildings and stuff that you're doing that's in the sub. But what what's committed to? Or what do you intend to do outside of that, if anything?

就在 PENN 區，如果我在你的評論中與媒體來回交流時失去了線索，我深表歉意。但是，如果我們展望未來幾年，是否有一種方法可以使您打算做的事情或花費超出目前正在進行的建築物和您正在做的事情的事情在潛艇中具體化。但是什麼是承諾？或者你打算在那之外做什麼，如果有的話？

We haven't gotten into that. We haven't announced that. We haven't quite gotten that far. We have already in the PENN District done heroic accomplishments. We did the Moynihan Train Hall in a private-public partnership. We did the widening of the Long Island Rail Road Concourse. We have the Retail on both sides of that concourse. We completed the 730-odd thousand square foot Facebook deal in Farley. We have done a massive and very successful renovation of PENN1 where we have driven the rents from 55-60 to the stunning side of $100 a foot and delivered value to our tenants, and we are in the middle of a $1 billion renovation of PENN2. Together with that we are doing area-wide improvements, infrastructure to the public realm, and we're going to take a breath. The prospect of doing ground-up development, we will likely start with an apartment project, but we have not yet announced what we're doing. We're in the middle of planning that, and we're actually very excited about it.

我們還沒有進入那個。我們還沒有宣布。我們還沒有走到那一步。我們已經在賓夕法尼亞區做出了英雄般的成就。我們以公私合作的方式建造了 Moynihan Train Hall。我們拓寬了長島鐵路的中央大廳。我們在該大廳的兩側都有零售店。我們在 Farley 完成了 730 多萬平方英尺的 Facebook 交易。我們對 PENN1 進行了大規模且非常成功的翻新，我們將租金從每英尺 55-60 美元提高到令人驚嘆的 100 美元，並為我們的租戶創造了價值，我們正在進行價值 10 億美元的 PENN2 翻新。與此同時，我們正在對公共領域進行區域範圍內的改進和基礎設施建設，我們要喘口氣了。做地面開發的前景，我們可能會從一個公寓項目開始，但我們還沒有宣布我們在做什麼。我們正在計劃之中，實際上我們對此感到非常興奮。

Okay. And then just one -- just a clarification question for me. Just a reminder, like if I look on your balance sheet, the 14-or-so million Class A units seem to have a redemption price of, I think, about $23.5 a share. I mean, given where the stock is, is there any thought that those holders could exercise? And am I looking at that right?

好的。然後只有一個-- 對我來說只是一個澄清問題。提醒一下，如果我查看你的資產負債表，我認為大約 14 萬個 A 類單位的贖回價似乎約為每股 23.5 美元。我的意思是，考慮到股票的位置，是否有人認為這些持有者可以行權？我看對了嗎？

Michael or Tom, you're going to have to help me with that one.

Michael 或 Tom，你們必須幫我解決這個問題。

Yes, let us come back to you on that one.

是的，讓我們回到你身邊。

Our next question comes from Nick Yulico with Scotiabank.

我們的下一個問題來自豐業銀行的 Nick Yulico。

I wanted to see if you -- there's any update you could provide on the retail JV, and I know the loans there that matured, we're still talking to the lenders. Just how we should think about that? Is there a situation where you are prepared to walk away from the assets? And specifically as well, that one mortgage 640 Fifth, which matures next year, which is one of your loans that is recoursed to the company. What should we think about the plan on that specifically?

我想看看你是否 - 你可以提供關於零售合資企業的任何更新，我知道那裡的貸款已經到期，我們仍在與貸方交談。我們應該如何考慮？是否存在您準備放棄資產的情況？具體來說，明年到期的 640 Fifth 抵押貸款是您向公司追索的貸款之一。我們應該如何考慮具體的計劃？

Michael?

邁克爾？

Yes. Nick. On the first asset St. Regis, which we talked a little bit last quarter, that continues to be in discussion with the lenders. And we're, I think, heading towards a mutually acceptable resolution there. So hopefully, that will be done in the next 90 days. And with respect to 640, which matures next May, that's something that we started to work on now, start to gauge the financing markets, talk at an existing bank loans. So obviously, existing lender is somebody that we'll continue to have discussions with as well. So too early to tell exactly what's going to happen there. But obviously, the intent is to refinance that asset and whether we do it at par or pay it down a little bit, but the expectation is that asset will get refinanced.

是的。缺口。關於第一個資產 St. Regis，我們在上個季度談過一點，繼續與貸方討論。我認為，我們正朝著達成雙方都能接受的解決方案邁進。希望這將在接下來的 90 天內完成。關於明年 5 月到期的 640，這是我們現在開始研究的事情，開始評估融資市場，討論現有的銀行貸款。很明顯，現有的貸方也是我們將繼續與之討論的人。現在說那裡會發生什麼還為時過早。但很明顯，我們的目的是為該資產再融資，無論我們是按面值還是支付一點點，但期望資產將得到再融資。

I will say, Nick, I think one interesting dynamic. Sort of 2, 3, 4 years ago, Retail word is a 4-letter word, nobody wanted to touch it. That's changing. It's changing. Unfortunately, office is now in that category for most people. But for Retail, it's flipped. Retail, I think people view the worst is behind us. The capital markets are more constructive, both investors as well as lenders. And so yes, they have to sort of understand and think about how to deal with above-market rents in some cases. But I think in general, the capital markets are more constructive on retail today than they have been in a few years.

我會說，尼克，我認為一種有趣的動態。大約在 2、3、4 年前，Retail 詞是一個 4 個字母的詞，沒人想碰它。這正在改變。它正在改變。不幸的是，對於大多數人來說，辦公室現在屬於這一類。但對於零售業而言，情況正好相反。零售業，我認為人們認為最壞的情況已經過去。資本市場更具建設性，無論是投資者還是貸方。所以是的，在某些情況下，他們必須理解並思考如何處理高於市場價的租金。但我認為，總的來說，與過去幾年相比，今天的資本市場對零售業更具建設性。

Okay. Just one other question is going back to the commentary on a potential buyback. I mean, the debt capital markets right now seem as bad as they've been for office since the great financial crisis, and there's a bearish argument that maybe the lending markets don't come back in a way that they existed in the past decade. So it seems to me that if you're talking about asset sales to fund the potential stock buyback there's implicitly a view that you think the lending markets improve. And I guess, I'm wondering why make that call now instead of paying down debt, I mean you have a balance on your line of credit, you have maturities you're dealing with over the next year or so. Why isn't that the better use of capital, sell assets pay back debt and perhaps that would you reward your stock price more so than a buyback?

好的。另一個問題是回到對潛在回購的評論。我的意思是，債務資本市場現在看起來和金融危機以來的情況一樣糟糕，而且有一種悲觀的觀點認為，借貸市場可能不會像過去十年那樣回歸.所以在我看來，如果你談論資產出售來為潛在的股票回購提供資金，那麼你就會隱含地認為藉貸市場有所改善。我想，我想知道為什麼現在就打電話而不是償還債務，我的意思是你的信用額度有餘額，你有未來一年左右的到期時間。為什麼不能更好地利用資本、出售資產來償還債務，也許與回購相比，這會給你的股價帶來更多回報？

Michael, why don't you try that.

邁克爾，你為什麼不試試呢。

Yes. Nick, I don't think -- I mean to be clear, I don't think we said buybacks and not -- I mean, we said on asset sales, I don't think we said just buyback, right? I think depending on -- I think we said that, first of all, the buyback amount we put out, I would characterize as fairly modest. And as Steve said earlier, it could be funded largely from retained cash from the dividend. But in terms of asset sales, yes, I don't think we've said anything about that's just [oriented towards] buyback. If we execute on asset sales, of course, we're going to look at the proceeds and what the best use for that is, and we're very mindful, like our #1 priority is making sure our balance sheet remains strong. We can tackle anything and delevering (inaudible) situations or pushing out maturities by paying down.

是的。尼克，我不認為——我的意思是說清楚，我不認為我們說的是回購，而不是——我的意思是，我們說的是資產出售，我不認為我們只是說回購，對吧？我認為取決於——我認為我們說過，首先，我們提出的回購金額，我認為是相當適中的。正如史蒂夫早些時候所說，它的資金主要來自股息的留存現金。但就資產出售而言，是的，我認為我們沒有說過任何關於 [oriented to] 回購的事情。當然，如果我們執行資產出售，我們將研究收益以及最好的用途是什麼，我們非常注意，就像我們的第一要務是確保我們的資產負債表保持強勁。我們可以解決任何問題和去槓桿化（聽不清）的情況或通過償還來推遲到期。

Of course, that's going to be in the toolbox. So we agree. We're going to focus on making sure the balance sheet is strong and asset sales are going to be used for a variety of things.

當然，這將在工具箱中。所以我們同意。我們將專注於確保資產負債表強勁，資產出售將用於各種用途。

Our next question comes from Ronald Kamdem with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Ronald Kamdem。

Just a couple of quick ones. So I was looking at the cash flow statement and looking at the $92 million of operating cash flow this quarter. Obviously, there's some working capital seasonality. But just one, can you talk about what happened to OpEx in the quarter, it looked elevated, and I suspect, sort of flow through? And then two, I know you said nothing changed, but was this sort of cash flow in 1Q part of the connecting the dots about postponing the dividend and thinking about doing a scrip dividend, just to preserve cash flow.

只是幾個快速的。所以我查看了現金流量表，並查看了本季度 9200 萬美元的運營現金流。顯然，營運資金存在一些季節性。但只有一個，你能談談本季度 OpEx 發生了什麼，它看起來很高，我懷疑，有點流動？然後兩個，我知道你說什麼都沒有改變，但是第一季度的這種現金流是否與推遲派息和考慮進行以股代息有關，只是為了保持現金流。

On your second question, Ron, definitely not. I mean, again, nothing has changed, so no. On the OpEx...

關於你的第二個問題，羅恩，絕對不是。我的意思是，再一次，沒有任何改變，所以沒有。在運營支出...

Maybe there's some seasonality. Ron, we could work offline and take a look at your model.

也許有一些季節性。羅恩，我們可以離線工作並查看您的模型。

I don't think it's material.

我不認為這是物質的。

I don't think it's material, though.

不過，我認為這不是物質。

Great. And then just the last one, just on the refinancing. You already hit on the Fifth Avenue property, which I was going to ask about. But any comments on 280 Park as well, which is coming next year. And just any general color when we're thinking about the model, what sort of rates, potential pay down, how are you guys thinking about that?

偉大的。然後只是最後一個，只是關於再融資。你已經找到了我正要詢問的第五大道房產。但對明年即將推出的 280 Park 也有任何評論。當我們考慮模型時，只是任何一般顏色，什麼樣的利率，潛在的回報，你們是如何考慮的？

Yes. What I would say is the general comment, Ronald, is your existing lender is your best new lender. So I think most -- and I think most lenders appreciate that, that it's going to be difficult to refinance certainly large assets for the foreseeable future. So they're going to have to work with borrowers, sponsors, they feel the right stewards of the asset, which I think clearly we are. And so I think on a number of these situations, you're going to see extensions for these loans.

是的。我要說的是一般性評論，羅納德，你現有的貸方是你最好的新貸方。所以我認為大多數 - 我認為大多數貸方都明白，在可預見的未來，肯定很難為大型資產再融資。因此，他們將不得不與借款人、贊助商合作，他們覺得自己是資產的正確管理者，我認為我們顯然是。所以我認為在許多情況下，你會看到這些貸款的延期。

So in some cases, there might be pay downs. In other cases, there might not be. So the answer is discussions have started there, and we'll see how they ensue. But I think on these larger near-term situations, I think the lender -- lenders, borrowers are fairly tied together for the near term.

因此，在某些情況下，可能會出現減薪。在其他情況下，可能沒有。所以答案是討論已經從那裡開始，我們將看看它們是如何發生的。但我認為，在這些更大的近期情況下，我認為貸款人——貸款人、借款人在短期內是緊密聯繫在一起的。

Our next question is a follow-up from Alexander Goldfarb with Piper Sandler.

我們的下一個問題是亞歷山大·戈德法布 (Alexander Goldfarb) 與派珀·桑德勒 (Piper Sandler) 的後續行動。

Maybe I missed it, but did you guys talk about 555. One, the debt restructuring with the servicer, what you guys are thinking about that? And two, just given all the stories that we hear about just the state of San Francisco's office market, what's going on with leasing in the building, the Montgomery Street box, et cetera.

也許我錯過了，但是你們有沒有談過 555。第一，與服務商的債務重組，你們在想什麼？第二，考慮到我們聽到的關於舊金山寫字樓市場狀況的所有故事，建築物的租賃情況，蒙哥馬利街的盒子等等。

Yes. I'll touch on the first, and then I'll have Glen touch on the second. Alex, it can be a bit frustrating when things are written, which are just not fact-based. This is a notion that 555 was in a workout or there was something -- the answer is building is performing extraordinarily well. There's no issue with the loan. We took out an outstanding loan 2 years ago, and it was structured as a 2-year initial loan with a series, a 5-year, 1-year asset right extensions, right? My asset right, if you want the additional term, all you have to do is send in a letter and you get it, right? So once a year, we're going to send a letter to the servicer. We're going to extend the loan and that will be that, right? So there's no threat of default.

是的。我先談談第一個，然後讓格倫談談第二個。亞歷克斯，當寫的東西不是基於事實的時候，它可能會有點令人沮喪。這是一個概念，即 555 正在鍛煉或有什麼東西——答案是建築物的性能非常好。貸款沒有問題。我們在 2 年前拿出了一筆未償還的貸款，它的結構是 2 年期初始貸款和一系列 5 年、1 年的資產權利延期，對嗎？我的資產對，如果你想要額外的期限，你所要做的就是寄一封信，你就可以得到，對吧？因此，每年一次，我們將向服務商發送一封信。我們將延長貸款期限，就是這樣，對嗎？所以不存在違約威脅。

There's never been a threat of default. There's never been an issue with this loan. It was a 7-year loan structure that way. So all the articles written on this thing, nobody did their homework. And by the way, there may be other situations like that. So it bears understanding how the loans are structured and what the real story is, which everybody wrote on that just got it dead wrong.

從來沒有違約的威脅。這筆貸款從來沒有問題。這是一個 7 年期的貸款結構。所以所有的文章都寫在這個東西上，沒有人做功課。順便說一句，可能還有其他類似的情況。因此，了解貸款的結構以及真實的故事是有必要的，每個人都在上面寫的完全錯了。

In terms of the building, I'll let Glen talk about it. But again, it continues to be, I think, the best performing asset in San Francisco with just the premier lineup of financial service team.

在建築方面，我會讓格倫談談。但我認為，它仍然是舊金山表現最好的資產，擁有一流的金融服務團隊。

Alex, it's Glen.

亞歷克斯，是格倫。

Michael, the rate is swapped.

邁克爾，利率已調換。

Yes. Yes. That's right, Steve.

是的。是的。沒錯，史蒂夫。

Alex. First of all, it's really a 7-year loan, which has a combination to the lender was structured as a 2 plus 5 one, it's a 7-year loan. And so anything -- the newspapers got it all wrong. The second thing is that it was a floater that we swapped at a very favorable rate and we swapped it for, I don't know, 6.5 years or something like that. So -- and the second thing is the best financial services building in the marketplace is full. Glen, do you want to comment about the quality of the building?

亞歷克斯。首先，這確實是一筆 7 年期貸款，貸款人的組合結構為 2 加 5，這是一筆 7 年期貸款。所以任何事情——報紙都弄錯了。第二件事是我們以非常優惠的利率交換了一個浮動利率，我們將其交換為 6.5 年或類似的期限，我不知道。所以——第二件事是市場上最好的金融服務大樓已經滿了。格倫，你想對建築的質量發表評論嗎？

Look, the building has been perfectly insulated against everything you're reading about in that marketplace. We've lost 0 tenants to anything, Goldman Sachs, KKR, Microsoft BofA all renewed their leases during the last 3-year period, which speaks to the asset. I think that's like really need to know and none of them reduced in size. We're obviously in the market with the Cube 345. That's the only vacancy at 77,000 feet. We finished the redevelopment obviously, a couple of years ago. We continue to show it, but the camp is the 3 buildings has performed perfectly during this period, and it's clearly shown that it's the best asset in the city.

看，這座建築已經完全隔絕了你在那個市場上讀到的一切。我們已經失去了 0 個租戶，Goldman Sachs、KKR、Microsoft BofA 在過去 3 年期間都續簽了租約，這說明了資產。我認為這就像真的需要知道並且它們都沒有縮小尺寸。我們顯然在市場上銷售 Cube 345。這是 77,000 英尺處唯一的空缺。幾年前，我們顯然完成了重建。我們繼續展示它，但是camp is 3 buildings在這段時間裡表現的很完美，很明顯它是這個城市最好的資產。

Okay. I appreciate both comments.

好的。我很欣賞這兩個評論。

Your pardon, if we get a little bit in the way that this information.

請原諒，如果我們在獲取這些信息時遇到了一些問題。

That's the beauty of these earnings calls.

這就是這些財報電話會議的美妙之處。

I would like to turn the call back over to Stephen Roth for any closing remarks.

我想將電話轉回給 Stephen Roth 以聽取任何結束語。

Well, thank you all very much for joining us. We are actually very excited about beginning a buyback program. But also, we think what we're doing with the dividend is extremely logical, and we understand and appreciate your support. Thanks for joining, and we'll see you all in 3 months.

非常感謝大家加入我們。我們實際上對開始回購計劃感到非常興奮。而且，我們認為我們對股息所做的事情是非常合乎邏輯的，我們理解並感謝您的支持。感謝您的加入，我們將在 3 個月後與大家見面。

Ladies and gentlemen, this concludes today's conference. Thank you for your participation. You may now disconnect.

女士們，先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連接。