Veris Residential Inc (VRE) 2022 Q4 法說會逐字稿

Good morning, and welcome to the Veris Residential, Inc. Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Taryn Fielder, General Counsel. Please go ahead.

早上好，歡迎來到 Veris Residential, Inc. 2022 年第四季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議轉交給總法律顧問 Taryn Fielder。請繼續。

Good morning, everyone, and welcome to the Veris Residential Fourth Quarter 2022 Earnings Conference Call. I would like to remind everyone that certain information discussed on this call may constitute forward-looking statements within the meaning of the federal securities laws. Although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved. We refer you to the company's press release, annual and quarterly reports filed in the SEC for risk factors that impact the company. With that, I would like to hand the call over to Mahbod Nia, Veris Residential's Chief Executive Officer. Mahbod?

各位早上好，歡迎來到 Veris Residential 2022 年第四季度收益電話會議。我想提醒大家，本次電話會議上討論的某些信息可能構成聯邦證券法意義上的前瞻性陳述。雖然我們相信這些陳述中反映的估計是基於合理的假設，但我們不能保證預期的結果將會實現。我們建議您參考公司向美國證券交易委員會提交的新聞稿、年度和季度報告，了解影響公司的風險因素。有了這個，我想把電話轉給 Veris Residential 的首席執行官 Mahbod Nia。馬博德？

Thank you, Taryn. Good morning, and welcome to our fourth quarter 2022 earnings call. I'm joined today by our CFO, Amanda Lombard. Before I turn to our financial results, I'd like to take a moment to acknowledge the tremendous progress our team made during 2022 on our path to becoming a pure-play multifamily company. Despite the significant market volatility and resulting slowdown in transaction activity. We successfully executed on $1.4 billion of nonstrategic asset sales, $925 million of which has closed since the beginning of 2022, significantly reducing our office exposure and fully exiting the hotel segment.

謝謝你，塔林。早上好，歡迎來到我們的 2022 年第四季度財報電話會議。今天，我們的首席財務官 Amanda Lombard 加入了我的行列。在我談到我們的財務業績之前，我想花點時間感謝我們的團隊在 2022 年在成為一家純粹的多家族企業的道路上取得的巨大進步。儘管市場劇烈波動並導致交易活動放緩。我們成功地執行了 14 億美元的非戰略性資產出售，其中 9.25 億美元自 2022 年初以來已經關閉，顯著減少了我們辦公室的曝光率並完全退出了酒店部門。

We also completed and stabilized our newest ground-up multifamily development, Haus25 and completed the acquisition of The James together adding almost 1,000 units to our portfolio reflecting approximately 15% growth for the second consecutive year. As a result, we increased the share of our multifamily business from 56% of NOI at the beginning of 2022 to approximately 98% by year-end pro forma for sales under binding contract and the stabilized NOI from Haus25, massive concessions that we expect to burn off during the next 12 months.

我們還完成並穩定了我們最新的地面多戶住宅開發項目 Haus25，並完成了對 The James 的收購，為我們的投資組合增加了近 1,000 個單元，連續第二年實現約 15% 的增長。因此，我們將多戶家庭業務的份額從 2022 年初的 NOI 的 56% 增加到年底的約 98%，以根據具有約束力的合同和 Haus25 穩定的 NOI 進行銷售備考，我們預計在接下來的 12 個月內燃燒殆盡。

This progress has also allowed us to further strengthen our balance sheet reducing net indebtedness by nearly $570 million. Amanda will discuss this further. Our 6,931-unit operating multifamily portfolio and our 5,825 unit same-store operating portfolio were 95.3% and 95.5% occupied, respectively, as of December 31. This is consistent with our strategy of optimizing rents and growing NOI during the year. We continue to capture upside in our portfolio and have seen sustained growth of headline rents with loss to lease reducing to below 2% at the end of the quarter.

這一進展還使我們能夠進一步加強我們的資產負債表，將淨負債減少近 5.7 億美元。阿曼達將進一步討論這個問題。截至 12 月 31 日，我們擁有 6,931 個單元的多戶型經營組合和 5,825 個單元的同店經營組合的佔用率分別為 95.3% 和 95.5%。這與我們年內優化租金和增加 NOI 的戰略一致。我們繼續在我們的投資組合中抓住上行空間，並看到整體租金持續增長，租賃損失在本季度末降至 2% 以下。

The same-store portfolio achieved a blended net rental growth rate of 17% for the year and 11.7% for the fourth quarter. Our key markets of New Jersey and Boston achieved above-average market rental growth compared to the national average during 2022. Market rents across the Class A multifamily segment in Jersey City grew by 8% during 2022. By contrast, rents in our portfolio significantly outperformed the market, growing by over 15%, reflecting the high quality of our properties and strength of our operational platform. This was despite record new deliveries in the Jersey City market last year of almost 2,000 new units, 3x the historic average. However, near-term supply is limited with a mere 500 units expected to be delivered over the next 18 months, while demand remains robust. Full year same-store NOI increased by 20.1% compared to 2021 and driven by higher revenues and slightly lower controllable expenses despite significant and ongoing inflationary pressures.

同店組合實現了全年 17% 和第四季度 11.7% 的混合淨租金增長率。與 2022 年的全國平均水平相比，我們在新澤西和波士頓的主要市場實現了高於平均水平的市場租金增長。2022 年，澤西市 A 級多戶住宅市場的市場租金增長了 8%。相比之下，我們投資組合中的租金表現明顯優於全國平均水平市場增長超過 15%，反映了我們物業的高質量和我們運營平台的實力。儘管去年澤西城市場的新交付量達到創紀錄的近 2,000 套，是歷史平均水平的 3 倍。然而，近期供應有限，預計在未來 18 個月內僅交付 500 套，而需求依然強勁。與 2021 年相比，全年同店 NOI 增長了 20.1%，這是由於儘管存在顯著且持續的通貨膨脹壓力，但收入增加和可控費用略低的推動。

Turning to 2023. We've seen an increase in occupancy at the beginning of the year following a typically slower December driven by seasonal trends. Our same-store portfolio, which going forward will include the Upton, Capstone and RiverHouse 9, was 96% occupied as of February 14, and with a blended net rental growth rate of 11% recorded since the beginning of this year. As previously noted, Haus25, our 750-unit apartment tower in Jersey City, which commenced leasing in April was 95% leased as of February 3, well ahead of schedule and underwritten rents, demonstrating the strong demand for this property, consistent with that seen across our premium Class A multifamily portfolio.

轉向 2023 年。在季節性趨勢的推動下，12 月的入住率通常較慢，因此我們看到年初的入住率有所上升。截至 2 月 14 日，我們的同店投資組合將包括 Upton、Capstone 和 RiverHouse 9，入住率為 96%，自今年年初以來的混合淨租金增長率為 11%。如前所述，我們位於澤西城的 750 套公寓樓 Haus25 於 4 月開始出租，截至 2 月 3 日已出租 95%，遠超計劃和包銷租金，表明對該物業的強勁需求，與看到的情況一致在我們優質的 A 級多戶型投資組合中。

Achieving this milestone is a testament to Veris Residential's experienced leasing and marketing teams as well as our investment in environmentally friendly design features and responsible living concepts that meet the lifestyle preferences of residents. During 2022, we closed on over $800 million of sales, including 2 Waterfront office properties, 111 River Street and 101 Hudson Street, a number of nonstrategic land parcels and the Hyatt Hotel. Earlier this month, we also completed the sale of the Port Imperial hotel for $97 million, releasing approximately $13 million in equity and removing a $14 million-corporate guarantee.

實現這一里程碑證明了 Veris Residential 經驗豐富的租賃和營銷團隊，以及我們在環保設計特色和負責任的生活理念方面的投資，以滿足居民的生活方式偏好。 2022 年期間，我們完成了超過 8 億美元的銷售額，包括 2 處 Waterfront 寫字樓、111 River Street 和 101 Hudson Street、一些非戰略性地塊和凱悅酒店。本月早些時候，我們還以 9700 萬美元的價格完成了 Port Imperial 酒店的出售，釋放了大約 1300 萬美元的股權並取消了 1400 萬美元的公司擔保。

An additional $437 million of office properties are under binding contract. The proceeds from which upon closing are expected to provide the company with increased liquidity and valuable optionality in the year ahead. Furthermore, with our exit from the hotel segment complete, we will be only 2 office properties away from becoming a pure-play multifamily REIT once these transactions close. These remaining nonstrategic properties are unlevered and as such, are expected to release significant equity upon their sales.

另有 4.37 億美元的辦公物業簽訂了具有約束力的合同。交易完成後的收益預計將在來年為公司提供更多的流動性和寶貴的選擇權。此外，隨著我們完成退出酒店業務，一旦這些交易完成，我們距離成為純粹的多戶型房地產投資信託基金只有 2 個辦公物業。這些剩餘的非戰略性資產沒有槓桿，因此預計將在出售時釋放大量股本。

Since launching Embrace by Veris Residential, our formal approach to environmental, social and governance initiatives just over a year ago, we have significantly enhanced our company's efforts to support properties, people and the planet and are continuing to fulfill our stated commitments of creating communities with purpose, valuing diversity, equity and inclusion and implementing sustainable best practices, all through an approach that seeks to prioritize the creation of value for shareholders.

自一年多前推出 Embrace by Veris Residential（我們對環境、社會和治理舉措的正式方法）以來，我們顯著加強了公司支持房地產、人類和地球的努力，並繼續履行我們創建社區的既定承諾目的、重視多樣性、公平性和包容性，並實施可持續的最佳實踐，所有這一切都通過尋求優先為股東創造價值的方法來實現。

Most recently, Veris Residential was named a member of the 2023 Bloomberg Gender Equality Index, a modified market capitalization-weighted index developed to gauge the performance of public companies dedicated to reporting gender-related data. We also joined Pledge 1%, a global movement to inspire, educate and empower companies to leverage their resources for positive social impact and formed a strategic partnership with the MIT Center for Real Estate, 1 of the world's foremost institutes for the study of real estate and technology to jointly explore innovative solutions that will help our industry effectively and efficiently evolve for the future.

最近，Veris Residential 被任命為 2023 年彭博社性別平等指數的成員，該指數是一種經過修改的市值加權指數，旨在衡量致力於報告性別相關數據的上市公司的業績。我們還加入了 Pledge 1%，這是一項旨在激勵、教育和授權公司利用其資源產生積極社會影響的全球運動，並與麻省理工學院房地產中心（世界上最重要的房地產研究機構之一）建立了戰略合作夥伴關係和技術共同探索創新解決方案，幫助我們的行業有效和高效地面向未來發展。

During the past 2 years, we have successfully reduced complexity across the company, strengthened and simplified the balance sheet and streamlined and enhanced our operational platform, resulting in a fifth consecutive quarter of sector-leading performance across our multifamily portfolio. We begin 2023 in a strong position and well equipped to weather potential economic challenges that lie ahead as we near the anticipated completion of our transformation and seek to unlock the substantial value created for shareholders. With that, I'm going to hand it over to Amanda, who will update you on our financial performance during the quarter.

在過去的 2 年裡，我們成功地降低了整個公司的複雜性，加強和簡化了資產負債表，並精簡和增強了我們的運營平台，從而使我們的多戶家庭投資組合連續第五個季度取得行業領先的業績。我們在 2023 年開始時處於有利地位，並有能力應對未來潛在的經濟挑戰，因為我們即將完成轉型，並尋求釋放為股東創造的巨大價值。有了這個，我將把它交給阿曼達，他會向你介紹我們本季度的財務業績。

Thanks, Mahbod. For the full year 2022, net loss available to common shareholders was $0.63 per fully diluted share versus $1.39 for fully diluted share in the prior year. Net income available to common shareholders was higher in 2022 as a result of the ongoing transition to a pure-play multifamily REIT and higher gains recorded in 2022 on sales of nonstrategic assets. Core FFO was $0.05 and $0.44 for the fourth quarter and full year of 2022, respectively.

謝謝，馬博德。 2022 年全年，普通股股東可獲得的淨虧損為每股完全攤薄後的每股 0.63 美元，而上一年完全攤薄後的每股淨虧損為 1.39 美元。 2022 年普通股股東可獲得的淨收入更高，這是由於持續向純粹的多戶型 REIT 過渡，以及 2022 年出售非戰略資產的收益更高。 2022 年第四季度和全年的核心 FFO 分別為 0.05 美元和 0.44 美元。

As communicated previously, the transition to a pure-play multifamily company continues to drive near-term variability in our earnings. As we are focused on driving long-term value and earnings growth rather than short-term profit, the sale of highly levered assets with high capital requirement results in depressed earnings in the short term despite these assets generating little cash flow for distribution to shareholders. The good news is that as we conclude the transformation and reallocate the significant equity release from nonstrategic sales, there is room for significant earnings growth over the next 24 months.

如前所述，向純粹的多家族公司的過渡繼續推動我們收益的近期變化。由於我們專注於推動長期價值和收益增長而不是短期利潤，因此出售具有高資本要求的高槓桿資產會導致短期收益低迷，儘管這些資產產生的現金流量很少可分配給股東。好消息是，隨著我們完成轉型並重新分配從非戰略性銷售中釋放的大量股權，未來 24 個月的盈利有顯著增長的空間。

Given this backdrop, we have added a reconciliation in our earnings release as the variances from the third quarter to the fourth quarter. Ignoring all the noise, fourth quarter core FFO would have been $0.07, excluding $0.02 of onetime items related to catch-up in property level expenses in Jersey City real estate taxes. We believe that earnings will grow from this space due to the Haus25 lease-up, continued improvements in our overhead cost structure and further strengthening of the balance sheet.

鑑於這種背景，我們在收益發布中添加了對賬表，作為第三季度與第四季度的差異。忽略所有噪音，第四季度核心 FFO 為 0.07 美元，不包括 0.02 美元的一次性項目，這些項目與澤西市房地產稅中的財產級支出追趕有關。我們相信，由於 Haus25 的租賃、間接費用結構的持續改善以及資產負債表的進一步加強，該領域的收益將會增長。

As Mahbod mentioned, Haus25 achieved stabilized lease occupancy in February. However, the GAAP NOI in Haus25 doesn't reflect the fully stabilized NOI [on] there are concessions that will burn off over the next year. In addition, the fully stabilized NOI of $30 million presented in our supplemental is expected to be achieved by the end of 2023 and includes retail NOI, which is still under lease-up.

正如 Mahbod 所說，Haus25 在 2 月份實現了穩定的租賃入住率。然而，Haus25 中的 GAAP NOI 並未反映完全穩定的 NOI [on] 有一些讓步將在明年消失。此外，我們補充中提出的 3000 萬美元的完全穩定 NOI 預計將在 2023 年底實現，其中包括仍在租賃中的零售 NOI。

Annual year-over-year same-store NOI was up 20.1%. However, despite strong rental growth, same-store NOI sequentially was relatively flat as we had anticipated due to the catch-up in higher real estate taxes, primarily in Jersey City and a dip in leasing activity due to a return to more normalized seasonal trends. Sequentially, we saw an increase in same-store rental revenue of 2.1% and believe that we will continue to capture some of our loss to lease from [C] market rent growth.

年度同店 NOI 同比增長 20.1%。然而，儘管租金增長強勁，但同店 NOI 環比持平，正如我們預期的那樣，這是由於房地產稅的追趕（主要是在澤西城）以及租賃活動因回歸更正常的季節性趨勢而下降.隨後，我們看到同店租金收入增長了 2.1%，並且相信我們將繼續從 [C] 市場租金增長中彌補我們的部分租賃損失。

As Mahbod mentioned, our 2023 same-store pool will include 3 additional properties comprising 856 units that together contributed around $16 million of NOI during the last year. For the last 2 quarters, we have seen elevated real estate taxes in Jersey City. While we have little control over future tax rate changes, we are doing all that we can to appeal real estate taxes and have pilot agreements in place at many of our newer properties. As we near the completion of our transition to a pure-play multifamily company, we have decided to align our reporting with that of other multifamily company and break out property level costs among controllable and noncontrollable expenses. We believe this breakout is important as it illustrates that year-over-year, same-store controllable expenses are almost flat despite the current inflationary environment. Further, the 3% increase in controllable expenses sequentially is a function of the timing in which the expenses were incurred. We believe that we will be able to continue mitigating anticipated inflationary pressures and maintain moderate expense growth in 2023.

正如 Mahbod 提到的，我們 2023 年的同店池將包括 3 個額外的物業，包括 856 個單元，這些物業在去年共貢獻了約 1600 萬美元的 NOI。在過去的兩個季度中，我們看到澤西市的房地產稅有所提高。雖然我們對未來的稅率變化幾乎沒有控制權，但我們正在竭盡所能呼籲徵收房地產稅，並在我們的許多新房產中製定了試點協議。隨著我們即將完成向純粹的多家族公司的過渡，我們決定將我們的報告與其他多家族公司的報告保持一致，並在可控和不可控費用中分解財產層面的成本。我們認為這一突破很重要，因為它表明儘管當前存在通脹環境，但同店可控費用同比幾乎持平。此外，可控費用環比增加 3% 是費用發生時間的函數。我們相信，我們將能夠在 2023 年繼續緩解預期的通脹壓力並保持適度的支出增長。

Turning to our general and administrative costs. After adjustments for onetime severance charges, core G&A for 2022 was $42 million in real term, representing the lowest level in over 2 decades. Over a year ago, we set our target to reduce cash expenses by $5 million, which we exceeded. In 4Q '21, the sum of our core G&A and real estate services expenses was $14.9 million. In 4Q '22, that sum was $12.9 million, implying a $2 million reduction on a quarterly basis or $8 million on an annualized basis. These savings were even greater, including capitalized expenses.

轉向我們的一般和行政成本。在對一次性遣散費進行調整後，2022 年的核心 G&A 實際為 4200 萬美元，是 20 多年來的最低水平。一年多前，我們設定了將現金支出減少 500 萬美元的目標，我們已經超過了這個目標。在 21 年第四季度，我們的核心 G&A 和房地產服務費用總和為 1490 萬美元。在 22 年第四季度，該金額為 1290 萬美元，這意味著每季度減少 200 萬美元或每年減少 800 萬美元。這些節省甚至更多，包括資本化的費用。

Over the last 2 years, we have focused on enhancing our operations when optimizing our cost structure in a thoughtful and orderly manner to ensure limited business disruption. We began this effort with a focus on people, removing duplications across the organization, adding talent to deepen our bench and rightsizing the team, positioning us well as we enter the final stages of our transformation into a multifamily company. To date, we have eliminated over 40 positions, realizing substantial payroll savings. Our G&A as a percentage of gross assets is currently in line with mid-cap rate peers. And with the right people, policies and processes now in place, we expect to realize further cost savings that will help ensure our G&A continues to be commensurate with the size of our business. We anticipate these savings to stem from internalization of services previously outsourced and consolidation of our corporate headquarters into a single location among other efforts.

在過去的 2 年裡，我們在以深思熟慮和有序的方式優化成本結構的同時，專注於加強我們的運營，以確保有限的業務中斷。我們開始這項工作時以人為本，消除整個組織的重複工作，增加人才以加深我們的替補席並調整團隊規模，在我們進入轉型為多家族公司的最後階段時定位我們。迄今為止，我們已經裁減了 40 多個職位，節省了大量工資。我們的 G&A 佔總資產的百分比目前與中等市值同行保持一致。有了合適的人員、政策和流程，我們希望進一步節省成本，這將有助於確保我們的 G&A 繼續與我們的業務規模相稱。我們預計這些節省將源於之前外包服務的內部化以及將我們的公司總部整合到一個單一地點等其他努力。

On to our balance sheet. To date, the primary use of proceeds from the sale of nonstrategic assets has been to pay down debt. reducing leverage and strengthening the balance sheet. As a result, over the course of the year, net debt to EBITDA improved from 15.3x to 13.3x while our debt to undepreciated assets ratio also improved from 47% to 42%.

在我們的資產負債表上。迄今為止，出售非戰略資產所得的主要用途是償還債務。降低杠桿率並加強資產負債表。因此，在這一年中，淨債務與 EBITDA 的比率從 15.3 倍提高到 13.3 倍，而我們的債務與未折舊資產的比率也從 47% 提高到 42%。

We have repaid nearly $1 billion of debt since the beginning of 2021 inclusive of an $84 million loan secured by the Port Imperial hotel maturing in 2023 that was repaid at the sale in February. As a result, the only outstanding maturity this year is a $59 million mortgage on one of our stabilized Boston properties. Furthermore, our multifamily debt is 100% senior secured, primarily nonrecore and none of it is cross collateralized. We believe that the company is well positioned in the current interest rate environment, with 96% of our total debt fixed and/or hedged, inclusive of the hedge on 145 Front Street, which was entered into subsequent to year-end, and the sale of the Port Imperial Hotel. As a result, our current total debt portfolio has a weighted average maturity of 4.1 years and a weighted average interest rate of 4.4%.

自 2021 年初以來，我們已經償還了近 10 億美元的債務，其中包括由 Port Imperial 酒店擔保的 2023 年到期的 8400 萬美元貸款，該貸款已在 2 月份的出售中償還。因此，今年唯一未到期的貸款是我們穩定的波士頓房產之一的 5900 萬美元抵押貸款。此外，我們的多戶家庭債務是 100% 優先擔保的，主要是非核心債務，並且沒有交叉抵押。我們認為，公司在當前的利率環境下處於有利地位，我們總債務的 96% 是固定的和/或對沖的，包括在年底之後進入的前街 145 號的對沖，以及出售港口帝國酒店。因此，我們目前的總債務組合的加權平均期限為 4.1 年，加權平均利率為 4.4%。

Finally, in relation to our recently announced transaction activity, the Port Imperial and Hyatt Hotels contributed less than $0.01 of core FFO in the fourth quarter and a very small loss is expected for the period owned during the first quarter. As we continue to advance our transformation to a pure-play multifamily company, our earnings will remain unpredictable and variable as we put the last pieces of the puzzle into place. And so we still believe that it is appropriate to delay providing company-level earnings guidance. However, as we have greater clarity over our core multifamily operations, we feel it is the appropriate time to provide guidance on this part of the business. For 2023, we anticipate that same-store NOI will grow between 4% and 6%. We are projecting that same-store revenues and expenses will grow by a similar quantum as well.

最後，關於我們最近宣布的交易活動，帝國港酒店和凱悅酒店在第四季度貢獻的核心 FFO 不到 0.01 美元，預計第一季度期間的虧損非常小。隨著我們繼續推進向一家純粹的多家族公司的轉型，我們的收入將仍然不可預測和可變，因為我們正在拼湊最後一塊拼圖。因此，我們仍然認為推遲提供公司層面的盈利指引是合適的。然而，隨著我們對核心多戶型業務的了解更加清晰，我們認為現在是為這部分業務提供指導的適當時機。對於 2023 年，我們預計同店 NOI 將增長 4% 至 6%。我們預計同店收入和支出也將以類似的幅度增長。

Before opening the line for questions, I'd like to briefly recap the results of our work over the last 2 years. We have simplified and focused our business, completing over $2 billion of nonstrategic property sales. Developed and stabilized over 1,600 units, growing our multifamily portfolio by 32% and increased the share of NOI for multifamily from 38% at the end of 2020 to 98% at the end of 2022 pro forma for the sale of Harborside 1, 2 and 3 and stabilized NOI from Haus25.

在開始提問之前，我想簡要回顧一下我們過去兩年的工作成果。我們簡化並集中了我們的業務，完成了超過 20 億美元的非戰略性房地產銷售。開發並穩定了 1,600 多個單元，使我們的多戶型投資組合增長了 32%，並將多戶型的 NOI 份額從 2020 年底的 38% 增加到 2022 年底的 98%，用於出售 Harbourside 1、2 和 3 的備考並穩定了 Haus25 的 NOI。

We also strengthened our balance sheet. We're paying nearly $1 billion of debt, including $575 million of recourse corporate bonds that were due to mature in 2023 and 2024. Veris Residential built a best-in-class multifamily portfolio with an average age of 6 years, extensive immunity offerings, and the highest average revenue and lower CapEx per unit compared to our publicly traded multifamily peer. As we approach the anticipated completion of our transformation, the management team and Board of Directors continue to work closely together and remain highly focused on the creation of value for all shareholders. That concludes our remarks. And operator, now I think we're ready for questions.

我們還加強了資產負債表。我們正在支付近 10 億美元的債務，包括 5.75 億美元的有追索權公司債券，這些債券將於 2023 年和 2024 年到期。Veris Residential 建立了一流的多戶投資組合，平均年齡為 6 年，提供廣泛的豁免產品，與我們公開交易的多戶家庭同行相比，平均收入最高，單位資本支出更低。隨著我們接近預期的轉型完成，管理團隊和董事會繼續密切合作，並高度關注為所有股東創造價值。我們的發言到此結束。接線員，現在我想我們已經準備好提問了。

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

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

A couple of questions here. Look, I understand you've greatly simplified the company. There's not much left on the noncore side, but you still got a couple of lowly leased office buildings, and there is some land, I guess, both inside the Rockpoint JV and outside. So can you maybe just talk about kind of the timing and maybe the appetite from investors today for both the office buildings and maybe the land, assuming that you're not planning to put that land into development service anytime soon.

這裡有幾個問題。看，我知道你已經大大簡化了公司。非核心方面所剩無幾，但你仍然有幾棟低價租賃的辦公樓，而且我猜，在 Rockpoint JV 內部和外部都有一些土地。那麼，假設您不打算很快將這塊土地投入開發服務，那麼您能否談談今天投資者對辦公樓和土地的投資時機和興趣。

Steve, and thank you for the question. It's a very relevant one. I would start by saying development at this time is not a priority for the company given what that entails in the near term in terms of capital requirement, leverage implications, et cetera, and the fact that development would take minimum 3 to 4 years to begin yielding income, which is a focus for the company. So that is not a priority at this time.

史蒂夫，謝謝你提出這個問題。這是一個非常相關的。我首先要說的是，考慮到短期內在資本要求、槓桿影響等方面需要什麼，以及開發至少需要 3 到 4 年才能開始的事實，目前開發不是公司的優先事項產生收入，這是公司的重點。所以這不是目前的優先事項。

As for the remaining nonstrategic assets and as you correctly point out, that is the 2 remaining office buildings, once Harborside 1, 2 and 3 closed, Harborside 5 and 6, and potentially some further rationalization of the land. We are seeing continued interest from buyers in both. We're evaluating our options both on the office side and the residential side. We may seek to further rationalize the land to some extent. And the office assets have been designated as nonstrategic, doesn't mean we'll [fly] sell them at any price tomorrow, but it does mean that as we have done with the balance of the nonstrategic assets to date, we were in a thoughtful and balanced measured way exit those in due course.

至於剩餘的非戰略性資產，正如您正確指出的那樣，即剩餘的 2 座辦公樓，一旦 Harbourside 1、2 和 3 關閉，Harbourside 5 和 6 以及可能進一步合理化土地。我們看到買家對這兩個項目都表現出持續的興趣。我們正在評估辦公室和住宅方面的選擇。我們可能會尋求在某種程度上進一步合理化土地。辦公室資產已被指定為非戰略性資產，並不意味著我們明天會以任何價格 [飛] 出售它們，但這確實意味著正如我們迄今為止對非戰略性資產餘額所做的那樣，我們處於周到和平衡的衡量方式退出那些在適當的時候。

Okay. And maybe a second question, I realize you haven't officially designated what you'll do with the proceeds. But I think the market expectation is that you would look to try and simplify the company and pay down or pay off the Rockpoint joint venture. I guess my question is, to the extent that you do close the Harborside sales and bring in the cash that you've talked about along with the suburban asset. Are there any restrictions that you have either via the line of credit or other debt that would sort of preclude that? Or kind of would hamstring you in sort of paying off the Rockpoint venture whenever that you kind of cross that mark?

好的。也許還有第二個問題，我知道你還沒有正式指定你將如何處理這些收益。但我認為市場預期你會嘗試簡化公司並支付或償還 Rockpoint 合資企業。我想我的問題是，在某種程度上你確實關閉了 Harbourside 的銷售並帶來了你所說的現金以及郊區資產。您是否通過信用額度或其他債務有任何限制可以排除這種情況？或者，每當您越過那個標記時，都會在某種程度上阻礙您償還 Rockpoint 風險投資？

Well, as I'm sure you know, there are certain parameters or framework within which a repayment would occur under the Rockpoint joint venture, so there's a buy, sell agreement that can be triggered by the party, could be deferred by up to 12 months. So within that framework to the extent the Board determines that to be the highest and best use for the equity that's released. We will look to obviously do what we can to efficiently reallocate the capital if it is determined that is the path we should go down in a manner that is consistent with the framework or otherwise negotiated. I'm sorry, what was the other part of your question?

好吧，我相信你知道，在 Rockpoint 合資企業下會發生還款的某些參數或框架，所以有一個可以由一方觸發的買賣協議，最多可以推遲 12個月。因此，在該框架內，董事會認為這是釋放的股權的最高和最佳用途。如果確定這是我們應該以與框架一致或以其他方式協商的方式走下去的道路，我們顯然會盡我們所能有效地重新分配資本。抱歉，你問題的另一部分是什麼？

Well, I was just trying to understand, are there any limitations kind of on the use of capital.

好吧，我只是想了解，對資本的使用是否有任何限制。

Yes. The only other limitation is that the credit line you should assume, given the proceeds for a potential repayment of Rockpoint would have to come from the sale of Harborside and Harborside really represents the collateral or part of the collateral for the current revolving credit facility. You should assume that there would be some sort of amendment or replacement of that revolving credit facility. But nothing that would hamper us there or restrict our ability to be able to move forward in that direction under the framework with Rockpoint.

是的。唯一的其他限制是您應該假設的信用額度，因為 Rockpoint 的潛在償還收益必須來自出售 Harbourside，而 Harbourside 確實代表當前循環信貸額度的抵押品或部分抵押品。您應該假設會對該循環信貸額度進行某種修改或替換。但沒有什麼會阻礙我們在那里或限制我們能夠在 Rockpoint 的框架下朝著那個方向前進的能力。

Okay. Great. And just last question for me. As you look out to, I guess, kind of March, April and potentially even May, how are you thinking about the renewal increases that you're sending out to existing residents on the multifamily side? Like where are those notices going out? And how might that have compared to the renewals that you got in maybe December, January and February?

好的。偉大的。最後一個問題問我。我猜，在你看來，大約是三月、四月甚至可能是五月，你如何看待你發送給多戶住宅方面現有居民的更新增加？比如那些通知發到哪裡去了？與您在 12 月、1 月和 2 月獲得的續約相比，情況如何？

Well, we're -- it's still looking quite strong. We have tried to temper expectations. We do think that ultimately, they will normalize at a lower level, and we provided some guidance around that, which I hope that you and others will find helpful at this stage. But what I can tell you is for the next couple of months going forward, we're still looking at double-digit renewal notices across the portfolio.

好吧，我們 - 它看起來仍然很強大。我們試圖緩和期望。我們確實認為最終它們會在較低的水平上正常化，我們為此提供了一些指導，希望在現階段對您和其他人有所幫助。但我可以告訴你的是，在接下來的幾個月裡，我們仍在關注整個投資組合中兩位數的續約通知。

The next question comes from Tom Catherwood with BTIG.

下一個問題來自 BTIG 的 Tom Catherwood。

Following up on Steve's question on the sales. Mahbod, where are we sitting with Harborside 1, 2 and 3? I know the expectation was for that to close, I think, in the first quarter of this year. How are we kind of looking in the process?

跟進史蒂夫關於銷售的問題。 Mahbod，我們和 Harborside 1、2 和 3 坐在哪裡？我知道人們期望它在今年第一季度結束。我們如何看待這個過程？

So sitting here today, our expectation is still very much that, that transaction closes within that time frame. Nothing is done until it's done. It is a tricky transaction market, could timing slip, possibly. But actually, we're in regular dialogue with that buyer. And based on everything we know, we feel confident today that, that will still close within the time frame that we had originally indicated.

所以今天坐在這裡，我們的期望仍然是，交易會在那個時間框架內完成。在完成之前什麼都做不了。這是一個棘手的交易市場，可能會錯過時機。但實際上，我們正在與該買家進行定期對話。根據我們所知道的一切，我們今天有信心，它仍將在我們最初指定的時間範圍內完成。

Got it. Got it. Back on the January 18 press release you put out, talking about the negotiations and then the offer that had come in from Kushner, the comment was obviously that the Board had planned to launch a strategic review process in due course. Where are you in that kind of early stages of the process? And what are the triggers that can commence that strategic review?

知道了。知道了。回到 1 月 18 日你發布的新聞稿，談到談判，然後是庫什納提出的提議，評論顯然是董事會計劃在適當的時候啟動戰略審查流程。你在這個過程的早期階段在哪裡？啟動戰略審查的觸發因素是什麼？

So look, this is -- what you've seen is -- we have recently reconstituted, independent, transparent boards that are highly focused on their fiduciary obligations and on the maximization of value for all shareholders. And in the spirit of that transparency, I think the Board was just making it be known to shareholders that we've had a number of inbounds from credible institutions who have expressed an interest in the multifamily side of the portfolio, given that now we are beginning to hopefully reach the conclusion of the transformation with the sale of the nonstrategic assets, which are less interesting to those parties.

所以看，這是——你所看到的——我們最近重組了獨立、透明的董事會，這些董事會高度關注他們的信託義務和所有股東的價值最大化。本著這種透明度的精神，我認為董事會只是讓股東知道我們已經收到了一些來自可靠機構的投資，他們對投資組合的多戶家庭方面表示了興趣，因為現在我們是開始希望通過出售非戰略資產來完成轉型，這些資產對這些各方來說不太感興趣。

And that prudent with also consistent with best corporate governance practices, the Board as it currently stands would contemplate running some sort of a process in due course at the appropriate time, taking into consideration where we are in the strategic transformation, market conditions and any other relevant factors to evaluate that interest and ultimately determine whether it would be in the best interest of shareholders to move forward on any path there. So no specific definitive time frame given, but I think those are the sorts of factors that the Board would consider.

為了謹慎並與最佳公司治理實踐保持一致，董事會目前的立場將考慮在適當的時候在適當的時候運行某種流程，同時考慮到我們在戰略轉型中所處的位置、市場條件和任何其他評估該利益的相關因素，並最終確定是否符合股東的最佳利益，以任何方式向前發展。所以沒有給出具體的明確時間框架，但我認為這些是董事會會考慮的因素。

Got it. Appreciate that color, Mahbod. And then last 1 for me. This is kind of a couple of quarters in a row where the net asset value that you're carrying for the Rockpoint interest has declined I assume that that's with changes in the underwriting as you're looking at the ultimate IRR of that investment, what has been that kind of underwriting change or hurdle change as you're looking to value that investment?

知道了。欣賞那種顏色，Mahbod。然後最後 1 對我來說。這是連續幾個季度，您為 Rockpoint 權益持有的資產淨值有所下降，我認為這是在您查看該投資的最終 IRR 時承保發生變化，什麼當您希望對投資進行估值時，是否存在這種承保變化或障礙變化？

Yes. So look, we obviously reassess the value, and that's based on an entity value of the multifamily side of the business in which we have a joint venture with Rockpoint and on a quarterly basis, we go through asset by asset and take into consideration cap rates and other relevant factors to determine where value sits and ultimately, what that would imply in terms of the value of that stake. So that's all you're seeing. If you're seeing some variability there, it's obviously primarily driven by the movement in rates and the implications for the value of assets.

是的。所以看，我們顯然重新評估了價值，這是基於我們與 Rockpoint 建立合資企業的多戶型企業的實體價值，我們每季度逐個資產評估並考慮資本化率和其他相關因素來確定價值所在，並最終確定這對股份的價值意味著什麼。這就是你所看到的。如果你在那裡看到一些變化，那顯然主要是由利率變動和對資產價值的影響所驅動的。

As far as that cap rate moves, is it -- how material has that been as part of that underwriting?

就資本化率的變化而言，作為承銷的一部分，它的重要性如何？

So look, it's asset by asset. So I would say, overall, as far as the markets are concerned, it's too early to draw any conclusions in terms of where cap rates have moved to or values have moved to we're still in the period of price discovery, transaction, volumes are extremely muted, especially here in Jersey City, where we have a concentration of assets. So it is a little bit of an art as opposed to a science. There aren't too many comps, we try to triangulate to a value that ultimately we think would reflect the quality of these assets, the scarcity of these assets and be the wall of capital that's still seeking to acquire high-quality multifamily assets.

所以看，這是逐個資產的。所以我想說，總的來說，就市場而言，現在就資本化率已經發生變化或價值已經發生變化得出任何結論還為時過早，我們仍處於價格發現、交易、交易量的時期非常安靜，尤其是在資產集中的澤西城。所以它有點像一門藝術而不是一門科學。沒有太多的補償，我們試圖通過三角測量得出一個我們認為最終會反映這些資產質量、這些資產的稀缺性的價值，並成為仍在尋求獲得高質量多戶資產的資本牆。

The next question comes from Joshua Dennerlein with Bank of America.

下一個問題來自美國銀行的 Joshua Dennerlein。

I just wanted to dig into your guidance assumptions a little bit more. Maybe just the first one, I guess, what are you guys assuming as far as market rent growth or new lease rate growth?

我只是想更深入地了解您的指導假設。也許只是第一個，我想，你們假設市場租金增長或新租賃率增長是什麼？

Sorry, what are we seeing in terms of overall rent growth...

抱歉，我們在整體租金增長方面看到了什麼......

Market rent growth for the multifamily portfolio. I know you talked earlier about -- or the renewal rates. So...

多戶型投資組合的市場租金增長。我知道你之前談到過 - 或續訂率。所以...

So for this coming year, we're assuming in the region of 3% rental growth.

因此，對於來年，我們假設租金增長 3%。

[Represent] Okay. And how does that compare to what you saw, I guess, just last year across the portfolio market rent growth?

[代表] 好的。我猜，這與你在去年整個投資組合市場租金增長中看到的情況相比如何？

Well, it's obviously tempered down somewhat given the pace of growth that we saw last year and potentially economic headwinds ahead. So last year, to put it into context, Jersey City, where we've got the highest concentration of assets as a market for Class A saw around 8% rental growth, we achieved around 15% rental growth in the last 12 months.

好吧，鑑於我們去年看到的增長速度以及未來潛在的經濟逆風，它顯然有所緩和。因此，去年，作為 A 級市場資產最集中的澤西城，我們在過去 12 個月實現了約 15% 的租金增長，租金增長約為 8%。

Okay. Awesome. And then maybe on the noncontrollable expense side, just what are you seeing as far as real estate taxes? Or what's baked into your expense growth guidance?

好的。驚人的。然後也許在不可控的費用方面，你對房地產稅有什麼看法？或者你的費用增長指南中包含了什麼？

Well, look, on the controllable side, so did you say on the noncontrollable or controllable?

那麼你看，在可控方面，你說的是不可控還是可控？

Noncontrollable? I guess I'm just curious...

不可控？我想我只是好奇...

Noncontrollable. I mean we saw a pretty significant increase, one of the highest in the country really, a 32% increase in Jersey City taxes. And so the assumption would be that, that's not sustainable in perpetuity. And so hopefully, that magnitude of that would suggest that any future tax increases to the extent they come won't be quite as high as we've seen. So what we really sought to do is on the controllable side, where we do have by definition, more control to really mitigate the impact of inflation, where you saw us actually slightly reduce costs year-over-year, and that's where we're focusing our efforts going forward to continue to further optimize the cost structure there.

無法控制。我的意思是我們看到了相當顯著的增長，實際上是全國最高的增長之一，澤西市的稅收增長了 32%。所以假設是，這不是永久可持續的。因此，希望如此大的幅度表明，未來的任何增稅幅度都不會像我們所看到的那樣高。所以我們真正想要做的是在可控方面，根據定義，我們確實有更多的控制來真正減輕通貨膨脹的影響，你看到我們實際上同比略微降低了成本，這就是我們的目標著眼未來，繼續進一步優化成本結構。

The next question comes from Nicholas Joseph with Citi.

下一個問題來自花旗的尼古拉斯約瑟夫。

A bit of a follow-up here, but how specifically are -- is the team and the Board planning on creating shareholder value beyond the current public offer out there right now?

這裡有一些後續行動，但具體情況如何——團隊和董事會是否計劃在當前公開發售之外創造股東價值？

Sorry, beyond the?

對不起，超越？

The current public offer from Kushner.

目前來自庫什納的公開報價。

Oh, I see. Well, so I wouldn't say that there's 1 part, Nick. I think you have, a, as I said, recently reconstituted Board that is independent, that has been very transparent, highly focused on their fiduciary obligations and the maximization of value for all shareholders. And they have and will continue to evaluate any credible inbound offers in parallel with the strategic transformation and the work that we're doing as a management team.

我懂了。好吧，所以我不會說有 1 個部分，尼克。正如我所說，我認為你有一個最近重組的董事會，它是獨立的，非常透明，高度關注他們的信託義務和所有股東的價值最大化。他們已經並將繼續評估任何可靠的入站報價，同時進行戰略轉型和我們作為管理團隊所做的工作。

But any such offers obviously must be fully funded and must reflect the intrinsic value of Veris Residential with regard to the offer that you're referring to, the Board has made it clear that [1850] does fall short of our adjusted new world view of where value sits and there does remain a significant question mark on whether that is even a financed offer. But nonetheless, the Board has constructively engaged with Kushner companies with the aim of signing an NDA, which is quite normal and a logical first step in situations like this, particularly a way of dealing with a competitor so that we can share non-public information and see if we can bridge the gap in value to where we think value sits. But as it stands having spent time and made concessions to get to agreement on that NDA. We've not received a signed NDA. The Board remains very much willing and open to engaging with Kushner companies or anyone else who has the ability to be able to move forward on a qualified basis.

但是任何此類報價顯然都必須得到充分資助，並且必須反映 Veris Residential 關於您所指報價的內在價值，董事會已明確表示 [1850] 確實不符合我們調整後的新世界觀價值在哪裡，這是否是一個融資報價確實存在一個重要的問號。儘管如此，董事會已與庫什納公司進行建設性接觸，目的是簽署保密協議，這是在這種情況下非常正常且合乎邏輯的第一步，尤其是與競爭對手打交道的方式，以便我們可以共享非公開信息看看我們是否可以將價值差距縮小到我們認為價值所在的位置。但就目前而言，我們已經花時間並做出讓步以就該 NDA 達成協議。我們尚未收到已簽署的 NDA。董事會仍然非常願意並願意與庫什納公司或任何其他有能力在合格基礎上向前邁進的人接觸。

So the 2 are not mutually exclusive. The part that we're focused on as the management team is continuing to simplify the business, complete the transformation, ultimately, we believe that creates entity value and to the extent the Board decides to crystallize that value mid-process, at the end of that process, really at any time. That's a decision for the Board and the [SRC].

所以兩者並不互斥。作為管理團隊，我們關注的部分是繼續簡化業務，完成轉型，最終，我們相信這會創造實體價值，並且在董事會決定在中期流程結束時具體化該價值的範圍內那個過程，真的隨時都有。這是董事會和 [SRC] 的決定。

Great. And then just a quick follow-up. So are you having any other conversations with anyone beyond Kushner?

偉大的。然後只是快速跟進。那麼除了庫什納之外，你是否與任何其他人進行過任何其他對話？

Well, it'd be inappropriate for me to comment on any specifics. But as we did mention in the January 18 press release, we've had a number of credible inbound expressions of strategic interest for the multifamily portfolio, given the progress that we're making on the strategic transformation.

好吧，我不適合評論任何細節。但正如我們在 1 月 18 日的新聞稿中提到的那樣，考慮到我們在戰略轉型方面取得的進展，我們已經對多戶投資組合的戰略興趣進行了許多可靠的入境表達。

The next question comes from John Pawlowski with Green Street Advisors.

下一個問題來自 Green Street Advisors 的 John Pawlowski。

Should we expect any multifamily acquisitions this year?

我們應該期待今年的多戶收購嗎？

Look, ultimately, between the -- if you think about the amount of equity that will be released from the remaining nonstrategic asset sales, it's significant. And as I mentioned earlier, it would be a decision for the Board to make at the appropriate time what the highest and best use is for that capital. So our acquisition is a priority. I don't think so. But ultimately, should they be one of the uses that's considered. I imagine it will be, but no decision has been made on the use of capital at this point.

最終，如果你考慮將從剩餘的非戰略性資產出售中釋放的股權數量，那將是非常重要的。正如我之前提到的，董事會將在適當的時候做出該資本的最高和最佳用途的決定。所以我們的收購是當務之急。我不這麼認為。但最終，它們是否應該成為考慮的用途之一。我想會的，但目前還沒有就資金的使用做出任何決定。

Okay. And then just maybe a follow-up to Steve's question in the beginning. It sounds like we should not expect any development starts this year. Is that a fair interpretation?

好的。然後也許只是對史蒂夫一開始提出的問題的後續行動。聽起來我們不應該期望今年會開始任何開發。這是一個公平的解釋嗎？

Yes. Again, look, I don't want to rule that out. That would be something that we discuss with the Board, but it is not something that I would imagine being a priority given our focus on other metrics, namely cash flow generation, to be able to replenish lost cash flow from the sale of highly levered office assets and ultimately get to a position of turning the dividend back on and given leverage considerations, I don't believe development will be a priority, but ultimately, let's say, use of proceeds will be a decision made in conjunction with the Board.

是的。再一次，看，我不想排除這種可能性。這將是我們與董事會討論的事情，但我認為這不是優先考慮的事情，因為我們關注其他指標，即現金流生成，以補充因出售高槓桿辦公室而損失的現金流資產並最終達到重新分配股息的位置，並考慮到槓桿因素，我不認為發展將是優先事項，但最終，可以說，收益的使用將由董事會共同做出決定。

Okay. Last question from me. Just curious how far along in the marketing process, are you on Harborside 5 and 6? And realistically, when is the soonest you could sell these properties.

好的。我的最後一個問題。只是好奇在營銷過程中走了多遠，你在 Harbourside 5 和 6 嗎？實際上，您最快什麼時候可以出售這些房產。

Yes. We're not really looking to provide any guidance there. I think what I would say is despite challenging transactional markets that we're clearly in, and I would say we have been in for the last 2, 2.5 years with COVID, and it hasn't stopped us from making progress and making progress in a thoughtful, balanced, in a measured way. We are considering our options with regard to those 2 assets. And ultimately, we'll update you in due course, but not looking to put any kind of time frame on when those get sold.

是的。我們並不是真的希望在那裡提供任何指導。我想我要說的是，儘管我們顯然處於充滿挑戰的交易市場，而且我想說我們在過去 2 年、2.5 年裡一直在使用 COVID，但它並沒有阻止我們取得進展並取得進展一種深思熟慮，平衡，有節制的方式。我們正在考慮關於這兩項資產的選擇。最終，我們會在適當的時候向您更新，但不希望在售出時設置任何時間框架。

The next question comes from Derek Johnston with Deutsche Bank.

下一個問題來自德意志銀行的 Derek Johnston。

Mahbod, as you field incoming interest that you mentioned for the multifamily portfolio, aren't potential buyers keenly interested in the land bank as part of any transaction, which kind of limits your ability there? If you can discuss that as land acquisition remains costly and development yields under pressure, just thinking that's probably part of the puzzle or the pie, if so to speak, if you can expand.

Mahbod，當你談到你提到的多戶投資組合的興趣時，作為任何交易的一部分，潛在買家不是對土地儲備非常感興趣，這在某種程度上限制了你在那裡的能力？如果您可以討論這一點，因為徵地仍然很昂貴，開發收益面臨壓力，只是認為這可能是難題或餡餅的一部分，如果可以這麼說的話，如果您可以擴展的話。

Yes. Thank you, Derek. Look, that's a great observation because the inbound expressions of interest as expected, are largely in the platform. And there is huge value in controlling developable, multifamily land. And so some of those prospective buyers, yes, it is absolutely interesting to continue to have some land in the business. Question is, it's all it of interest and should we rationalize it to some further extent prior to -- as part of the transformation. And that's a balancing act and something that we're working closely with our advisers and the Board to determine.

是的。謝謝你，德里克。看，這是一個很好的觀察，因為正如預期的那樣，入站的興趣表達主要在平台中。控制可開發的多戶家庭土地具有巨大價值。因此，其中一些潛在買家，是的，繼續在業務中擁有一些土地是絕對有趣的。問題是，這一切都很有趣，我們是否應該在轉型之前將其合理化到某種程度——作為轉型的一部分。這是一種平衡行為，也是我們正在與我們的顧問和董事會密切合作來確定的事情。

Okay. And just a quick follow-up. Can you remind us of what the land bank and titles and the entitlements in it and the parcels?

好的。并快速跟進。你能提醒我們土地儲備和所有權以及其中的權利和包裹是什麼嗎？

So value-wise, just over $300 million and around 5,000 units is what we believe can be developed on it.

因此，就價值而言，我們認為可以在此基礎上開發超過 3 億美元和大約 5,000 個單位。

And we have a follow-up from Steve Sakwa with Evercore ISI.

我們有來自 Evercore ISI 的 Steve Sakwa 的跟進。

Mahbod, just 1 follow-up. On Page 7, where you break out some of these nonstrategic assets, you do put this estimated land value inside Rockpoint JV that's roughly $240 million for roughly 5,000 units. I just wanted to be clear, is that 100% owned by Veris or if you were to, say, sell that either as the entity or individually, does some of that -- I guess do some of those proceeds get shared with Rockpoint?

Mahbod，只有 1 個跟進。在第 7 頁上，您將這些非戰略性資產中的一些分開，您確實將這個估計的土地價值放在了 Rockpoint JV 中，大約 2.4 億美元，大約 5,000 個單位。我只是想澄清一下，Veris 是否擁有 100% 的股份，或者如果您要作為實體或單獨出售，那麼其中的一些——我想其中一些收益是否會與 Rockpoint 分享？

No, that's our share of value, Steve.

不，那是我們的價值份額，史蒂夫。

Okay.

好的。

It's just what we're just trying to show there is what's inside the joint venture, what was wrote than versus what is on the corporate side, but that's our share.

這正是我們只是想展示的是合資企業內部的內容，所寫的內容與公司方面的內容相比，但這是我們的份額。

Okay. Great. I guess, just going back to John's question on Harborside 5 and 6. And I know leasing was virtually nonexistent at 1,500 square feet. I guess I'm just trying to understand a little bit better the assets don't have assumable debt, which if it did, might make them more sellable for a buyer if they were at low rates. And I'm just trying to figure out is with the lack of leasing, how problematic is that to sell 40% and 20% office buildings today with no debt assumable in today's environment?

好的。偉大的。我想，只是回到 John 關於 Harborside 5 和 6 的問題。而且我知道在 1,500 平方英尺處幾乎不存在租賃。我想我只是想更好地理解資產沒有可承擔的債務，如果有，如果它們處於低利率，可能會使它們更適合買家。我只是想弄清楚，在缺乏租賃的情況下，在今天的環境下，在沒有債務的情況下出售 40% 和 20% 的辦公樓會有多大問題？

I think it's a great question, actually. So you're absolutely right. Leasing was muted, but not across our portfolio. It was actually muted in the fourth quarter across Jersey City and across Manhattan, we had a significant decline in leasing. And what leasing did occur was really driven by lease expirations, not by growth or strategic initiatives, it was really renewal. So there are some early signs in 2023 that seem positive, potentially leasing could see some sort of an uptick and increase the number of inquiries. But actually, with regard to Harborside 5 and 6, beyond that office use, buyers that we're speaking to are looking at alternative use is what I would tell you.

實際上，我認為這是一個很好的問題。所以你是絕對正確的。租賃業務低迷，但並非在我們的投資組合中。實際上，在第四季度，整個澤西城和整個曼哈頓都處於靜音狀態，我們的租賃量大幅下降。確實發生的租賃實際上是由租約到期驅動的，而不是由增長或戰略計劃驅動的，它實際上是續約。因此，2023 年的一些早期跡像似乎是積極的，潛在的租賃可能會出現某種上升趨勢，並增加查詢數量。但實際上，關於 Harbourside 5 和 6，除了辦公室用途之外，我們正在與之交談的買家正在尋找其他用途，這就是我要告訴你的。

Okay. And 1 last for me. I guess on Page 13, where you kind of reconcile from FFO to core FFO, there's a couple of add backs. I just wanted to understand a little bit more. There's a dead deal on transaction costs of kind of $2.1 million, and then there were severance/rebranding. I didn't know how much was severance, how much was rebranding. But are those severance/rebranding costs kind of over with at this point? Or do you expect any of that to be carried forward into '23?

好的。最後 1 對我來說。我想在第 13 頁上，您從 FFO 到核心 FFO 的調和，有幾個補充。我只是想多了解一點。有一筆交易成本為 210 萬美元的死交易，然後是遣散費/品牌重塑。我不知道遣散費是多少，品牌重塑是多少。但這些遣散費/品牌重塑成本此時是否已經結束？還是您希望其中的任何一項能夠延續到 23 年？

Steve, this is Amanda. So in the severance and rebranding costs, for the fourth quarter, that's all severance-related costs. as far as what we would expect in the future, we're not giving guidance on that. But the rebranding costs. As far as what we would expect in the future we're not giving guidance on that but the rebranding costs are done, and we don't expect any more of that and they've been done for some time now. The -- your question on dead deal and transaction-related costs, that's just some various professional fees from a transaction that didn't go through. And I don't know. I don't know what will happen and if we would have more or not in the future.

史蒂夫，這是阿曼達。因此，在第四季度的遣散費和品牌重塑成本中，這都是與遣散費相關的費用。至於我們對未來的期望，我們不會就此提供指導。但品牌重塑成本。就我們對未來的期望而言，我們沒有就此提供指導，但品牌重塑成本已經完成，我們不再期望這樣，而且現在已經完成了一段時間。你關於無效交易和交易相關成本的問題，這只是未完成交易的一些各種專業費用。我不知道。我不知道會發生什麼，也不知道我們將來會不會有更多。

This concludes our question-and-answer session. I would like to turn the conference back over to Mahbod Nia for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Mahbod Nia 作任何閉幕詞。

Thank you for joining us today. We're pleased to report another quarter of progress in our strategic transformation and a fifth consecutive quarter of stellar operational performance. I'd like to thank the team for their tireless efforts that have allowed us to achieve these results and we look forward to updating you again in due course. Thank you.

感謝您今天加入我們。我們很高興地報告我們的戰略轉型又取得了四分之一的進展，並且連續第五個季度取得了出色的運營業績。我要感謝團隊的不懈努力，讓我們取得了這些成果，我們期待在適當的時候再次為您更新。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。