Veris Residential Inc (VRE) 2023 Q3 法說會逐字稿

Greetings, and welcome to Veris Residential Inc. Third Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Veris Residential Inc. 2023 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Taryn Fielder, General Counsel. Thank you, Ms. Fielder. You may begin.

現在我很高興向您介紹主持人，總法律顧問 Taryn Fielder。謝謝你，菲爾德女士。你可以開始了。

Good morning, everyone, and welcome to Veris Residential's Third Quarter 2023 Earnings Conference Call.

大家早安，歡迎參加 Veris Residential 2023 年第三季財報電話會議。

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 law. 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 and annual and quarterly reports filed with the SEC for risk factors that impact the company.

我想提醒大家，本次電話會議中討論的某些資訊可能構成聯邦證券法含義內的前瞻性陳述。儘管我們相信這些陳述中反映的估計是基於合理的假設，但我們不能保證能夠實現預期結果。我們建議您參閱本公司的新聞稿以及向 SEC 提交的年度和季度報告，以了解影響公司的風險因素。

With that, I would like to hand the call over to Mahbod Nia, Veris Residential's Chief Executive Officer, who is joined by Amanda Lombard, Chief Financial Officer. Mahbod?

接下來，我想將電話轉交給 Veris Residential 執行長 Mahbod Nia，財務長 Amanda Lombard 也將與他一起通話。馬哈博德？

Thank you, Taryn, and good morning, everyone.

謝謝你，塔林，大家早安。

In the third quarter, we continued to build upon the strong results we delivered during the first half of the year. Since redeeming Rockpoint's preferred interest in July, we've closed on the sales of four nonstrategic assets, releasing $122 million of net proceeds which were used to repay the balance of the term loan and revolving credit facility and refinanced approximately $350 million of debt, proactively addressing near-term debt maturities and enhancing our overall debt maturity profile.

在第三季度，我們繼續在上半年取得的強勁業績的基礎上再接再厲。自7 月贖回Rockpoint 的優先權益以來，我們已經完成了四項非戰略資產的出售，釋放了1.22 億美元的淨收益，這些收益用於償還定期貸款和循環信貸額度的餘額，並主動為約3.5 億美元的債務再融資解決近期債務到期問題並改善我們的整體債務到期狀況。

Operationally, we continued to outperform during the third quarter, achieving a blended same-store net rental growth rate of 9.3% and same-store NOI growth of 17.1%, despite widespread softening of rents across the multifamily sector.

在營運方面，儘管多戶住宅領域的租金普遍疲軟，但我們在第三季繼續表現出色，實現了 9.3% 的同店綜合淨租金成長率和 17.1% 的同店 NOI 成長。

The $122 million of nonstrategic assets closed since the end of the second quarter, but the total value of transactions closed this year at over $0.5 billion. Specifically, the most recent transactions completed include two further office buildings, Harborside 6 and 23 Main Street; and two land plots, Harborside 4 and 3 Campus.

自第二季末以來，已完成 1.22 億美元的非戰略資產，但今年的交易總價值超過 5 億美元。具體來說，最近完成的交易包括另外兩棟辦公大樓：Harborside 6 和 23 Main Street；以及兩塊地塊，Harbourside 4 和 3 Campus。

The net proceeds realized from these sales, combined with the excess cash flow from our now positive cash flow and operations and equity release from the refinancing of Haus25 enabled us to fully repay the balance of our term loan and revolving credit facility in just 3 months, resulting in a substantial interest expense saving in the process. 107 Morgan and 2 Campus remain on the binding contract and are anticipated to provide the company with additional liquidity upon closing.

這些銷售實現的淨收益，加上我們現在的正現金流和營運產生的超額現金流以及Haus25 再融資的股權釋放，使我們能夠在短短3 個月內全額償還定期貸款和循環信貸額度的餘額，從而在此過程中節省大量利息費用。 107 Morgan 和 2 Campus 仍保留具有約束力的合同，預計交易完成後將為公司提供額外的流動性。

Turning to operations. During the quarter, same-store occupancy and our retention rates remain stable at 95.5% and 55%, respectively. The blended same-store net rental growth rate remained strong at 9.3%, despite the end of the third quarter typically marking the start of a slower leasing season across the multifamily sector and rent increases being based on high-growth periods from 2022.

轉向營運。本季度，同店入住率和保留率分別穩定在 95.5% 和 55%。儘管第三季末通常標誌著多戶住宅產業租賃季節放緩的開始，且租金上漲是基於 2022 年以來的高增長期，但混合同店淨租金成長率仍然強勁，達到 9.3%。

While we anticipate further cooling of rents consistent with peers, we believe our highly mini-sized Class A portfolio continues to be well positioned for the less active winter leasing season. Our continued outperformance relative to the broader market, which saw rents rise by only 1% nationally year-over-year and by 5% in New Jersey, reflects a resilient demand for our high-quality Class A portfolio and the strength of our operational platform and capturing that demand, approximately 30% of which was comprised of new wins from New York City. Furthermore, New supply in the Jersey City Waterfront market continues to be muted with very few new deliveries expected in the next 18 to 24 months.

雖然我們預計租金將進一步降溫，與同行一致，但我們相信，我們的超小型 A 級投資組合將繼續為不太活躍的冬季租賃季節做好準備。我們的表現持續優於大盤，全國租金同比僅上漲 1%，新澤西州上漲 5%，這反映了對我們高品質 A 級投資組合的彈性需求以及我們營運平台的實力並抓住這一需求，其中約30% 來自紐約市的新勝利。此外，澤西市濱水區市場的新供應持續疲軟，預計未來 18 至 24 個月內新交付量很少。

The sustained revenue growth we achieved during the quarter, coupled with our continued focus on expense management, contributed to a 17.1% growth in same-store NOI compared to the third quarter of 2022, representing an additional $17.9 million of NOI generated in the 9 months ended September 30, excluding the significant contribution from Haus25. This continued outperformance is reflected in our decision to once again raise NOI guidance to 14% to 15%. Amanda will discuss this in further detail.

我們在本季實現的持續營收成長，加上我們對費用管理的持續關注，導致同店 NOI 較 2022 年第三季成長 17.1%，這意味著在 9 個月內額外產生了 1,790 萬美元的 NOI截至9 月30 日，不包括Haus25 的重大貢獻。我們決定再次將 NOI 指導值提高至 14% 至 15%，反映了這種持續的優異表現。阿曼達將進一步詳細討論這一點。

As one of our industry leaders in the ESG, we were proud to be named global listed and regional sector leaders by the 2023 Global Real Estate Sustainability Benchmark, or GRESB earlier this month. Despite 2023 being only the second year in which we participated in the benchmark, we once again earned a 5-star rating for our performance, a testament to our ongoing commitment to sustainable operations, diversity and the advancement of ESG actions supporting the well-being of our residents, employees, suppliers and communities.

作為 ESG 領域的行業領導者之一，我們很榮幸在本月初被 2023 年全球房地產永續發展基準 (GRESB) 評為全球上市和區域行業領導者。儘管 2023 年只是我們參與基準測試的第二年，但我們的表現再次獲得 5 星評級，證明了我們對可持續運營、多元化和推進支持福祉的 ESG 行動的持續承諾我們的居民、員工、供應商和社區。

With that, I'm going to hand it over to Amanda, who will provide an update on our financial performance during the quarter.

接下來，我將把它交給阿曼達，她將提供我們本季財務表現的最新資訊。

Thanks, Mahbod. For the third quarter of 2023, net loss available to common shareholders was $0.60 per fully diluted share versus a net loss of $1.10 per fully diluted share in the third quarter of last year. The third quarter of 2023 includes interest costs of mandatorily redeemable noncontrolling interest of $35 million or approximately $0.35 per share related to the buyout of Rockpoint as we detailed last quarter.

謝謝，馬哈博德。 2023 年第三季度，普通股股東的每股完全稀釋每股淨虧損為 0.60 美元，而去年第三季每股完全稀釋每股淨虧損為 1.10 美元。 2023 年第三季包括與收購 Rockpoint 相關的 3,500 萬美元強制可贖回非控股權益的利息成本，即每股約 0.35 美元，正如我們在上個季度詳細介紹的那樣。

Core FFO per share was $0.12 for the third quarter as compared to $0.16 last quarter. The second quarter was positively impacted by two nonrecurring items: $0.02 from the settlement of two real estate tax appeals and $0.03 from the early tax credit, which we typically receive in the second quarter. AFFO per share was $0.15 as compared to $0.18 last quarter for the same reason.

第三季核心 FFO 每股為 0.12 美元，而上季為 0.16 美元。第二季受到兩項非經常性項目的正面影響：兩起房地產稅務上訴和解帶來的 0.02 美元，以及我們通常在第二季收到的早期稅收抵免帶來的 0.03 美元。出於同樣的原因，每股 AFFO 為 0.15 美元，而上季度為 0.18 美元。

Same-store NOI was up over 17% compared to the same quarter last year, reflecting 10.5% revenue growth and our continued efforts to mitigate property level expense inflation. Controllable expenses were up 6.4% quarter-over-quarter due to higher costs related to the peak leasing season. However, year-over-year controllable expenses ticked up only slightly from 2.6% to 3.9%.

與去年同期相比，同店 NOI 成長超過 17%，反映出 10.5% 的收入成長以及我們為緩解物業層面費用通膨所做的持續努力。由於租賃旺季相關成本增加，可控費用較上季成長 6.4%。然而，可控費用年比僅小幅上升，從 2.6% 升至 3.9%。

Our noncontrollable expenses continue to be variable period to period. This quarter, we renewed our property insurance. And while our insurance premiums increased by approximately 30% from the prior year, a reduction in our self-insurance based upon our annual review of that program offset the increase.

我們的不可控費用在不同期間仍有變動。本季度，我們續保了財產保險。雖然我們的保險費比前一年增加了約 30%，但根據我們對該計劃的年度審查，我們的自我保險費用有所減少，抵消了增加的費用。

In addition, real estate taxes as compared to the prior quarter are up significantly as a result of the $2.7 million favorable adjustment in Q2 related to the resolution of tax appeal, which was slightly offset this quarter by an increase of $0.5 million related to the finalization of Jersey City 2023 taxes. Next quarter, we expect that noncontrollable expenses will be approximately $0.005 higher than this quarter on a run rate basis.

此外，由於第二季與稅務上訴解決相關的 270 萬美元的有利調整，房地產稅與上一季相比大幅上漲，本季與最終確定相關的 50 萬美元的增加略有抵消澤西市2023 年稅收。下個季度，我們預計非可控費用將按運行率計算將比本季高出約 0.005 美元。

In regards to our general and administrative costs, after adjustments for noncash stock compensation along with severance payments, G&A was down to $8.7 million for the quarter. The fourth quarter may be slightly higher than the third quarter due to various costs that occur regularly in that quarter. However, overall, we remain on track to record the lowest level of G&A in nominal terms in over a decade and the lowest when adjusted for inflation since the '90s.

關於我們的一般和管理成本，在對非現金股票補償和遣散費進行調整後，本季的一般管理費用降至 870 萬美元。由於該季度定期發生的各種成本，第四季度可能會略高於第三季。然而，總體而言，我們仍有望創下十多年來名義上的一般管理費用最低水平，以及自 90 年代以來的通貨膨脹調整後的最低水平。

On to our balance sheet. During the quarter, we entered into a transitional term loan and credit facility to complete the negotiated redemption of rough points preferred interest in Veris Residential Trust. The balance of these facilities was repaid in just 3 months using net proceeds from $122 million of recently closed nonstrategic asset sales. Excess proceeds from the refinancing of Haus25 and surplus cash flow from our now cash-generative operations.

到我們的資產負債表上。本季度，我們簽訂了過渡性定期貸款和信貸安排，以完成 Veris Residential Trust 粗分優先權益的協商贖回。這些貸款的餘額在短短 3 個月內就用最近完成的 1.22 億美元非戰略資產出售的淨收益償還了。 Haus25 再融資的超額收益和我們目前的現金產生業務的剩餘現金流量。

We proactively refinanced Haus25, fourth quarter 2024 maturity at an interest rate of 5.46%, reducing the cost on this loan by 124 basis points. As a result of this, we were able to increase the weighted average maturity of our total debt portfolio from 3.6 to 4 years, while improving our maturity ladder with no more than 23% of our debt portfolio due in any given year and an average of 15% maturing per annum over the next 5 years. As of October 24, effectively all of our debt is fixed and are hedged with the latest refinancings which constituted 14% of our overall debt stack increasing our weighted average interest rate marginally from 4.4% to 4.5%.

我們主動為 2024 年第四季到期的 Haus25 進行再融資，利率為 5.46%，使該貸款成本降低了 124 個基點。因此，我們能夠將總債務投資組合的加權平均期限從 3.6 年增加到 4 年，同時改善我們的到期階梯，在任何給定年份到期的債務投資組合不超過 23%，平均期限為未來5年每年到期15%。截至10 月24 日，我們的所有債務實際上都已固定，並透過最新的再融資進行對沖，該再融資占我們總債務的14%，使我們的加權平均利率從4.4% 略微提高至4.5% 。

While our net debt to EBITDA will remain sensitive to earnings and prone to fluctuation, it has gradually trended down to 12.4x pro forma for the recent repayment of the transitional loan as we have prioritized that repayment, having reduced net debt by approximately $1 billion in addition to the redemption of Rockpoint's $520 million preferred interest since the end of 2020.

雖然我們的 EBITDA 淨債務仍對獲利敏感且易於波動，但由於我們優先考慮償還過渡貸款，淨債務在 2019 年減少了約 10 億美元，因此最近償還過渡貸款的預期負債已逐漸下降至 12.4 倍。加上自2020 年底以來贖回Rockpoint 的5.2 億美元優先權益。

Looking ahead at our upcoming consolidated maturities, Veris has $308 million of mortgages we expect to be refinanced as we move into 2024. While the commercial real estate debt markets are constrained, there remains demand to lend for high-quality multifamily assets like ours, as evidenced by the recent financing.

展望我們即將到來的合併到期日，Veris 擁有3.08 億美元的抵押貸款，我們預計將在2024 年進行再融資。儘管商業房地產債務市場受到限制，但仍然存在對像我們這樣的高品質多戶資產的貸款需求，因為最近的融資就證明了這一點。

Accordingly, we anticipate utilizing cash flow from operations and proceeds from continued nonstrategic asset sales to reduce our leverage on these loans as we refinance them, to the extent required or is otherwise determined by the Board of Management.

因此，我們預計在管理委員會要求或另行決定的範圍內，利用營運產生的現金流量和持續非策略性資產出售的收益，在為這些貸款再融資時降低我們對這些貸款的槓桿率。

Turning to our outlook. As Mahbod mentioned, our portfolio's performance has provided us with the flexibility to raise our same-store NOI guidance range to 14% to 15% from 10% to 12%. This is largely driven by higher-than-expected market rent growth, which we expect to be in the range of 9% to 10% and better-than-expected outcomes on insurance and real estate tax renewals. We project expenses will end the year in the range of 2% to 3%.

轉向我們的展望。正如 Mahbod 所提到的，我們的投資組合的表現使我們能夠靈活地將同店 NOI 指導範圍從 10% 至 12% 提高至 14% 至 15%。這主要是由高於預期的市場租金成長所推動的，我們預計市場租金成長將在 9% 至 10% 之間，以及保險和房地產稅續約的結果好於預期。我們預計年底支出將在 2% 至 3% 範圍內。

This concludes another strong quarter for Veris Residential, during which we continue to demonstrate multifamily outperformance and advance the completion of nonstrategic asset sales while further strengthening our balance sheet.

Veris Residential 的另一個強勁季度就此畫上句號，在此期間，我們繼續展示多戶型住宅的優異表現，推進非戰略資產銷售的完成，同時進一步強化我們的資產負債表。

With that, we are ready to open the line for questions.

這樣，我們就可以開始提問了。

(Operator Instructions) The first question comes from the line of Eric Wolfe from Citi Research.

（操作員說明） 第一個問題來自花旗研究部的 Eric Wolfe。

It's actually Nick Joseph here with Eric. Maybe just starting on the operating portfolio, can you touch on where you are seeing new lease rate growth today in October and then where renewals kind of are trending for October and then spent out for November and December?

實際上是尼克約瑟夫和艾瑞克在一起。也許剛開始討論營運投資組合，您能否談談今天 10 月的新租賃率成長以及 10 月的續約趨勢以及 11 月和 12 月的支出趨勢？

Nick, thank you for the question. So we said last quarter that we expected rents to moderate now. I mean we've had very strong rental growth, double-digit rental growth. That's not sustainable in perpetuity. We indicated that we'd be in the mid- to high single-digit range going forward. You've seen us come in at the high end of that. I do think we'll -- that will further moderate to somewhere in the mid-single digits, which is much more, let's say, indicative of longer-term growth rates.

尼克，謝謝你的提問。因此，我們上個季度表示，我們預計租金現在將會放緩。我的意思是我們的租金成長非常強勁，兩位數的租金成長。這不是永久可持續的。我們表示，未來我們將處於中高個位數範圍內。您已經看到我們處於高端。我確實認為我們會——這將進一步放緩至中等個位數，這更能說明長期成長率。

Is there anything you're seeing in terms of rent to income or any other affordability metrics that are impacting it? Or is it just more normal seasonality and just such coming off of such high rent growth?

您是否發現租金收入比或任何其他負擔能力指標對其產生影響？或者這只是更正常的季節性因素以及如此高的租金成長所帶來的影響？

Yes. It's actually -- it's the two latter points that you made. So it's -- from an affordability standpoint, we actually remain in very good shape. We've seen good income growth. There was obviously some commentary about that slowing down more generally, but we've seen that sustained at around 15% or even actually slightly below 15% now in terms of rent to net disposable income. It's more a function of your now lapping periods of extremely high rent growth, and that is just not sustainable. And we've also entered now the seasonally tougher period when it comes to the multifamily sector on the whole.

是的。實際上，這是您提出的後兩點。所以，從負擔能力的角度來看，我們其實保持著非常好的狀態。我們看到了良好的收入成長。顯然有一些關於租金普遍放緩的評論，但我們看到租金與可支配淨收入之比維持在 15% 左右，甚至實際上略低於 15%。這更多的是你現在租金增長極高的時期的函數，這是不可持續的。就整體而言，我們現在也進入了多戶住宅領域的季節性困難時期。

Great. And then just on the insurance renewal, can you quantify the reduction in the self-insureds?

偉大的。那麼就續保而言，您能量化自我保險人數的減少嗎？

Sure. This is Amanda. I think as I said earlier, it's about $0.005 that you'll see are noncontrollable expenses go up next quarter. So I think that's what you can expect.

當然。這是阿曼達。我認為正如我之前所說，下個季度您將看到不可控制的費用增加約 0.005 美元。所以我認為這就是你可以期待的。

Next question comes from the line of Steve Sakwa with Evercore ISI.

下一個問題來自 Evercore ISI 的 Steve Sakwa。

Mahbod, now that you've, I guess, essentially completed kind of the cleanup of all the noncore assets, Rockpoint, you're really down to just one office property. I guess, how are you sort of looking at the organization as you think about moving forward, as a stand-alone enterprise realizing that a monetization event is kind of out of your control, but how are you thinking about the organization, the people in place? And what else do you need to do to make this a best-in-class apartment company?

Mahbod，我想，現在你基本上已經完成了所有非核心資產的清理工作，Rockpoint，你實際上只剩下一棟辦公大樓了。我想，當你考慮前進時，你會如何看待這個組織，作為一個獨立的企業，意識到貨幣化事件有點超出你的控制範圍，但你如何看待這個組織，以及其中的人員？地方？為了讓這家公司成為一流的公寓公司，您還需要做些什麼？

Steve, thank you. That's a great question and something that we've been giving a lot of thoughts to ourselves as well. The last 3 years, I would describe as the transformation phase, where we've sold over $2 billion of nonstrategic assets, predominately office and really tried to get ahead of that exiting an asset class that is not strategic to us and pivoting to an asset class, whereby we continue to believe in the long-term fundamentals and is very much core to our business.

史蒂夫，謝謝你。這是一個很好的問題，我們也一直在思考這個問題。過去3 年，我將其描述為轉型階段，我們出售了超過20 億美元的非戰略資產，主要是辦公大樓，並且確實試圖領先一步，退出對我們來說不具有戰略意義的資產類別，並轉向資產我們繼續相信長期基本面，並且是我們業務的核心。

There's a little bit more to do as you highlighted in Harborside 5, and that's not insignificant, given it's an unlevered office building and has substantial equity trapped in it, but the transformation phase is effectively over. What I would describe this next phase as is the optimization phase. And there, we do have a number of levers available to us, a number of initiatives to allow us to now be able to really optimize what we have in this pure-play multifamily platform and organically seek to continue enhancing its value.

正如您在 Harbourside 5 中強調的那樣，還有更多工作要做，這並非無關緊要，因為它是一棟無槓桿的辦公大樓，並且有大量股權被困其中，但轉型階段實際上已經結束。我將下一階段描述為優化階段。在那裡，我們確實擁有許多可用的槓桿和一系列舉措，使我們現在能夠真正優化我們在這個純多戶型平台中所擁有的內容，並有機地尋求繼續提高其價值。

A number of different prongs to that, and we're evaluating those at this time, working with the Board. Some of it will involve some further simplification that could touch on corporate structure, capital structure and other areas. A large part of it is capital allocation. If you think about the capital within the business today, there is still significant amounts of equity that is either idle or generating a suboptimal return for us.

對此有許多不同的方面，我們目前正在與董事會合作評估這些方面。其中一些將涉及進一步簡化，可能涉及公司結構、資本結構和其他領域。其中很大一部分是資本配置。如果您考慮一下當今企業內部的資本，仍然有大量股權閒置或為我們帶來次優回報。

And so reallocating that capital to a higher and more accretive use really has the potential to continue driving the top line and hence flow down to the bottom line for us. Going forward, given the size of the business, there are other areas potentially we're looking at a couple of.

因此，將資本重新分配到更高、更具增值性的用途確實有可能繼續推動營收，從而流向我們的利潤。展望未來，考慮到業務規模，我們可能還會考慮其他一些領域。

On the whole, we have a very young portfolio, as you know, but there are one or two areas where we think there could be potential value-add opportunities and continued operational efficiencies, all of which together really do have the potential to continue driving or enhancing value of the platform in this next optimization phase.

總體而言，如您所知，我們擁有一個非常年輕的投資組合，但我們認為在一兩個領域可能存在潛在的增值機會和持續的運營效率，所有這些加起來確實有潛力繼續推動或在下一個優化階段提高平台的價值。

But I guess as just maybe a quick follow-up, do you feel like you have kind of the right people in place to sort of make all these changes in steps? Or do you feel like you still need to add to the organization?

但我想，也許只是一個快速的跟進，你是否覺得你有合適的人來逐步進行所有這些改變？或是你覺得你還需要加入組織嗎？

No, absolutely not. We've got a lean but very effective team, as you've seen. To date, we've got a long way towards rebuilding the operational side of things as well. So no, I'm very comfortable with the team that we've got that we can execute on this next optimization phase.

不，絕對不是。正如您所看到的，我們擁有一支精簡但非常有效率的團隊。到目前為止，我們在重建營運方面還有很長的路要走。所以不，我對我們可以在下一個優化階段執行的團隊感到非常滿意。

Okay. And then there's been some articles about kind of rent control coming up in Jersey City and maybe some of the surrounding communities. Can you maybe just sort of speak to -- I know it's a very complicated and long-winded answer and longer than this conference call, but just maybe high level, how are you sort of thinking about the rent control within kind of the market in your portfolio? And are there things that you need to do to make sure that you follow kind of all the rules and regulations? Or is there any risk about rent control being imposed on any part of the portfolio?

好的。然後，澤西市以及週邊的一些社區出現了一些關於租金管制的文章。你能不能談談——我知道這是一個非常複雜和冗長的答案，比這次電話會議還要長，但也許只是高層，你是如何考慮市場中的租金管制的？你的投資組合？您需要做些什麼來確保遵守所有規則和規定？或對投資組合的任何部分實施租金管制是否有風險？

Sure. Look, we believe that we've taken all the necessary and appropriate steps to preserve the available exemptions from rent control ordinances, which may be applicable to the properties in our portfolio. We're, let's say, in a fortunate position that we have a younger vintage portfolio that helps in that respect and that we've developed most of those assets, and so feel comfortable with the position we're in.

當然。看，我們相信我們已經採取了所有必要和適當的措施來保留租金管制條例的可用豁免，這可能適用於我們投資組合中的房產。可以說，我們處於一個幸運的位置，我們擁有一個更年輕的老式投資組合，在這方面有所幫助，並且我們已經開發了大部分資產，因此對我們所處的位置感到滿意。

Next question comes from the line of Anthony Paolone with JPMorgan.

下一個問題來自摩根大通的 Anthony Paolone。

I guess first question is around noncore. Beyond Harborside 5, it does sound like you still have some things that you might consider getting rid of. Can you maybe just talk a bit more about what those might be and where there might even be liquidity that's acceptable to pursue other sales right now in the market?

我想第一個問題是關於非核心的。除了 Harbourside 5 之外，聽起來您確實還有一些可以考慮扔掉的東西。您能否再多談談這些可能是什麼，以及哪裡可能存在可以接受的流動性，可以立即在市場上進行其他銷售？

Sure. Yes, Harborside 5 is the obvious nonstrategic one. The question really beyond that is do we seek to potentially further rationalize the land bank which, to the extent not developed. Really is just idle equity again in the business that isn't really generating a return. So that's really what I was primarily referencing with that comment. But there are further potential pockets of capital as well. If you look at the joint ventures, the remaining joint ventures, where we may seek to reallocate some of that capital over time to put it to a higher and better use and a more accretive use.

當然。是的，Harbourside 5 顯然是一個非策略性的專案。除此之外，真正的問題是我們是否尋求進一步合理化未開發的土地儲備。實際上只是企業中的閒置股權，並沒有真正產生回報。這就是我在該評論中主要引用的內容。但還有更多潛在的資金來源。如果你看看合資企業，剩下的合資企業，我們可能會隨著時間的推移尋求重新分配部分資本，以將其用於更高、更好的用途和更具增值性的用途。

Okay. And then on the core, appreciate just the strength in the rent growth in your market. And what you've done operationally. I mean the numbers are just outsize. Like can you maybe just give us a sense as you look back over the last few quarters, how much of that's really just been the market versus just efforts you've made to hunker down either and change how you price or be more aggressive there or just on the operations side? And just trying to understand maybe how much more runway might exist there if that was a big part of this.

好的。然後在核心方面，欣賞您所在市場租金成長的強勁勢頭。以及您在操作上所做的事情。我的意思是這些數字實在太大了。當你回顧過去幾個季度時，你能否讓我們了解一下，其中有多少實際上只是市場因素，而不是你為改變定價方式或更激進而做出的努力，或者只是在運營方面？只是想了解如果這是其中一個重要的部分，那麼那裡可能還有多少跑道。

It's a great question. Look, if you look at the New Jersey overall rental growth during this period, it was around 5%. We've come in at 9%. I do think that the quality of the assets is second to none. And I do believe we have gone a long way towards rebuilding the operational platform with new people, new processes, new technology, and that's an ongoing effort.

這是一個很好的問題。你看，如果你看看新澤西州這段時期的整體租金成長，你會發現它在 5% 左右。我們的比例是 9%。我確實認為資產品質是首屈一指的。我確實相信，我們在利用新人員、新流程、新技術重建營運平台方面已經走了很長的路，這是一項持續的努力。

So it's difficult to say how much of that is property, how much of it is people, how much of it is market, but the combination on the whole is what's delivering the results that you're seeing, and we do feel there's still some room to go now on the operational side to make improving. It's an ever-evolving initiative. And -- we're fortunate we have great assets in great markets with supply-demand dynamics that put us in a very favorable position for the foreseeable future. And we have a team that is highly focused and capable and extracting the value from those assets.

因此，很難說其中有多少是財產，有多少是人，有多少是市場，但整體上的結合才帶來了你所看到的結果，我們確實認為仍然有一些現在在操作方面還有改進的空間。這是一項不斷發展的舉措。而且，我們很幸運，我們在廣闊的市場中擁有大量資產，其供需動態使我們在可預見的未來處於非常有利的地位。我們擁有一支高度專注、有能力從這些資產中提取價值的團隊。

Okay. And just one follow-up. I think maybe it is perhaps mixed in with Nick's question earlier, but where are you sending renewal notices out today?

好的。只有一個後續行動。我想這可能與尼克之前的問題混在一起，但是你今天在哪裡發送續約通知？

I think you should assume for the next couple of months will land up in the mid-single digit, maybe a touch above that level.

我認為你應該假設接下來的幾個月將達到中個位數，也許略高於該水平。

Next question comes from the line of Joshua Dennerlein with Bank of America.

下一個問題來自美國銀行的 Joshua Dennerlein。

Just wanted to follow up on that operating platform initiatives that you mentioned. I guess what's the main focus that you want to improve over the next 12 months? And maybe what kind of benefit might we see from our perspective?

只是想跟進您提到的營運平台計劃。我想您在接下來的 12 個月內想要改進的主要焦點是什麼？從我們的角度來看，也許我們會看到什麼樣的好處？

Well, you've seen already some of the benefits come through and the way we go about revenue management and the way we go about expense management. So you've seen that in how we price things and driving the top line, but you've also seen an improvement in our margins year-over-year. And that was really what I was alluding to is that there is -- I do believe there's still some further room to go, and we will update in due course what some of those steps are that we've taken or plan to take, but they're really centered around continuing to drive the top line, optimize and seek to mitigate the expense side of things, doing things differently, more efficiently and utilizing technology where warranted to help us in achieving our goals there.

好吧，您已經看到了一些好處以及我們進行收入管理和費用管理的方式。因此，您已經在我們定價和推動營收的方式中看到了這一點，但您也看到了我們的利潤率逐年提高。這正是我所暗示的，我確實相信還有進一步的空間，我們將在適當的時候更新我們已經採取或計劃採取的一些步驟，但是他們的真正核心是繼續推動營收、優化並尋求減少開支、以不同的方式、更有效率地做事，並在有保證的情況下利用科技來幫助我們實現目標。

Okay. And then I see there's some debt coming due in 2024. I guess just what's the plan with that refi or just pay down? Or just how are you thinking about it? And maybe if it's a refi, what kind of rate can you please say?

好的。然後我看到一些債務將於 2024 年到期。我想重新融資的計劃是什麼，還是只是還清？還是你怎麼想的？如果是再融資，您能說一下利率是多少嗎？

Well, you've seen with the two refinancings that we just announced that despite the real estate, commercial real estate debt markets being challenging at the moment, there is still liquidity available and there's appetite to lend on high-quality assets such as ours. And so the two assets you're referring to for next year, those are high-quality, very well-performing properties that we also anticipate getting attractive bids on.

好吧，您已經從我們剛剛宣布的兩次再融資中看到，儘管房地產、商業房地產債務市場目前面臨挑戰，但仍然有可用的流動性，並且有興趣為像我們這樣的優質資產提供貸款。因此，您提到的明年的兩項資產都是高品質、表現良好的房產，我們也預計它們會獲得有吸引力的出價。

And so consistent with our approach this past quarter, you should assume that we'll be proactive and at the appropriate time look at options available to us to refinance those to the extent that we choose to or require to somewhat pay down those loans. We're also in a position of strength now in having liquidity available to us today, liquidity that we anticipate coming through the closing of remaining nonstrategic assets that are under contract and potentially further assets beyond that. And the business itself is now cash flow generative. And so that gives us another source as well to the extent we choose to or required to do something of a pay down on those.

因此，與我們上個季度的做法一致，您應該假設我們將積極主動，並在適當的時候考慮我們可以選擇的再融資方案，以達到我們選擇或要求部分償還這些貸款的程度。我們現在也處於有利地位，因為我們今天擁有可用的流動性，我們預計流動性是透過關閉合約中剩餘的非戰略資產以及除此之外的潛在資產來實現的。現在，該業務本身就可以產生現金流。因此，這也為我們提供了另一個來源，只要我們選擇或要求對這些進行一些償還。

Next question comes from the line of Tom Catherwood with BTIG.

下一個問題來自 BTIG 的 Tom Catherwood。

Maybe starting with Amanda, you had mentioned using the remaining or at least some of the remaining proceeds, where the asset sales that are still under contract as you go to refinance the $300-plus million that are maturing. When you finish those, roughly $71 million of sales that will put you roughly at $90 million of cash. Do you have all of that earmarked for debt reductions? Or do you think you'll have some remaining for other sources and uses?

也許從阿曼達開始，您提到使用剩餘的或至少部分剩餘的收益，當您為即將到期的 3 億多美元進行再融資時，仍按合約出售資產。完成這些後，大約 7100 萬美元的銷售額將為您帶來約 9000 萬美元的現金。您是否已將所有資金專門用於減少債務？或者您認為您還會剩下一些用於其他來源和用途嗎？

Tom, I'll take that, if that's okay, and then Amanda can chime in. So today, from a liquidity standpoint, we also have the line, so there's about $90 million of liquidity, $71 million of assets under binding contract today. As I said, there's also cash flow coming off of the operations -- surplus cash flow coming off of the operations that's adding to that and potentially further nonstrategic assets that could be sold between now and next year that could further add to that.

湯姆，如果可以的話，我會接受的，然後阿曼達可以插話。所以今天，從流動性的角度來看，我們也有這條線，所以今天有大約9000 萬美元的流動性，今天有約束力的合約下有7100 萬美元的資產。正如我所說，還有來自營運的現金流——來自營運的盈餘現金流增加了這一點，並且從現在到明年之間可能會出售更多的非戰略資產，這可能會進一步增加這一點。

So there are plenty of sources available in the part. And I think over these coming months, we'll be working with the Board to determine the highest and best use for that capital. Rates being where they are today, one would rightly assume that debt repayment will be a very accretive and appropriate use of any capital that's freed up, but that's something that we'll work with the Board to ultimately determine and it could be a combination of things could be -- or could go towards that repayment.

因此，該部分有大量可用資源。我認為在接下來的幾個月裡，我們將與董事會合作，確定資本的最高和最佳用途。按照目前的利率，人們會正確地認為債務償還將是對釋放的任何資本的一種非常增值和適當的使用，但這是我們將與董事會合作最終確定的事情，它可能是以下因素的結合：事情可能會——或者可能會朝著償還的方向發展。

Got it. And then, Mahbod, you had mentioned moving from in the response to Steve's question moving from this transformation period to this optimization period. When we think of the rebranding and severance costs that you've -- that kind of cycle that you've gone through during the transformation period. Now that you're in that optimization phase, do you think we're closer to that clean G&A run rate? Or is there still some -- your remaining rebranding expense that you think is going to run through that line over the coming year?

知道了。然後，馬哈博德，您在回答史蒂夫的問題時提到從這個轉型期轉向這個優化期。當我們想到您所經歷的品牌重塑和遣散費時—您在轉型期間經歷的這種循環。現在您已處於最佳化階段，您認為我們是否更接近乾淨的一般管理費用運作率？或者，您認為來年仍然有一些剩餘的品牌重塑費用將貫穿這條線？

It's going to take a little while to settle and not necessarily in relation to the rebranding, but more generally, just to give you an example, so the repayment of Rockpoint, we've talked about how that will result in, anticipated cost savings related to obligations we had with regard to that partnership that will cease to exist going to next year.

這需要一段時間才能解決，不一定與品牌重塑有關，但更普遍的是，只是給你舉個例子，所以 Rockpoint 的償還，我們已經討論過這將如何導致預期的成本節省我們對這種夥伴關係所承擔的義務到明年將不復存在。

Some of those things, it just takes time to work through and actually probably won't really come through into the numbers until back end of next year or second half of next year. And then between now and then we also have factors outside of our control such as inflation, which seems to be moderating at this point. but it still has an impact. So it's difficult to give you guidance on a run rate G&A. But what I would say is it has come down a lot. We've now brought it down to the lowest level in a decade and actually in real terms since the '90s.

其中一些事情只是需要時間來解決，實際上可能要到明年年底或明年下半年才能真正體現在數字上。從現在到那時，我們還有一些我們無法控制的因素，例如通膨，目前通膨似乎正在放緩。但它仍然有影響。因此，很難為您提供有關運行費率 G&A 的指導。但我想說的是，它已經下降了很多。我們現在已將其降至十年來的最低水平，實際上是自 90 年代以來的實際水平。

If you look at us, which is the only appropriate way to look at us, given scale is the most significant factor in looking at the various metrics. When assessing G&A, if you look at us relative to the mid-cap here as a percentage of gross asset value, which is really the asset base that we have to manage we're right at the median there. And so I think, gone a long way, potentially have some more to go, but also combating inflation and factors that are outside of our control, very difficult to give you a run rate at this stage.

如果你看看我們，這是看待我們的唯一合適的方式，那麼規模是查看各種指標時最重要的因素。在評估一般行政費用時，如果你將我們相對於中型股的總資產價值的百分比視為我們必須管理的資產基礎，我們就處於中位數價值。所以我認為，走了很長的路，可能還有更多的路要走，而且還要對抗通貨膨脹和我們無法控制的因素，現階段很難給你一個運作率。

And the other thing is just the business is not, as we go through this optimization phase, there will be pushes and pulls there as well. The reality is that we just haven't reached a mature stage as a pure-play multifamily company, where you could say, right, that is a mature cost structure, capital allocation side of it has been addressed. So the revenue side of it is predominantly going to be driven by rents and rates. There are still things even that on the capital allocation side, if you just only think about the land, which is just over $200 million and Harborside 5 and several hundred million dollars, as I mentioned in joint ventures that isn't all necessarily generating an appropriate return for us. But even between Harborside 5 and the land that's $300 million that really isn't generating a return.

另一件事是，業務並非如此，當我們經歷這個優化階段時，也會有推動和拉動。現實情況是，作為一家純粹的多戶家庭公司，我們還沒有達到成熟階段，你可以說，這是一個成熟的成本結構，資本配置方面已經解決。因此，收入方面主要由租金和費率驅動。即使在資本配置方面，仍然存在一些問題，如果你只考慮土地，它的價值剛剛超過 2 億美元，而 Harbourside 5 和數億美元，正如我在合資企業中提到的那樣，並不一定會產生給我們適當的回報。但即使是 Harbourside 5 和這塊價值 3 億美元的土地也沒有真正產生回報。

And for a company of our size, that's meaningful, having that much idle capital. And so I think the primary driver is going to be capital allocation, but other things we can do as well on the expense side before it reaches a mature state as a business and until then it's difficult to give that kind of guidance.

對於我們這樣規模的公司來說，擁有這麼多閒置資本，這是很有意義的。因此，我認為主要驅動力將是資本配置，但在業務達到成熟狀態之前，我們也可以在費用方面做其他事情，在此之前很難提供此類指導。

Understood. I appreciate that. And then last one for me. You've obviously been at the forefront when it comes to ESG and integrating that into the company and platform. What's next on the sustainability front. You obviously have a modern portfolio. But do you have any near-term CapEx plans when it comes to either reducing energy consumption or carbon emissions or anything else along that front?

明白了。我很感激。然後是我的最後一張。在 ESG 並將其整合到公司和平台方面，您顯然處於最前沿。永續發展的下一步是什麼。顯然你有一個現代的投資組合。但是，在減少能源消耗或碳排放或其他方面，您是否有任何近期資本支出計劃？

Yes. Everything I would say to date, the approach remains the same, and it's an ever-evolving initiative. And so everything we've done and everything we continue to do, we evaluate based on a number of different factors, but ultimately, it comes down to return on invested capital.

是的。到目前為止我想說的一切，方法都保持不變，而且這是一個不斷發展的舉措。因此，我們所做的一切以及我們繼續做的一切，我們都會根據許多不同的因素進行評估，但最終，這取決於投資資本的回報率。

And so either there's a direct return on invested capital, whereby we know, for example, seeking an alternative to traditional heating systems. It may be that there's a -- that we have energy savings that result in a payoff of 5 years or whatever it may be, and we'll evaluate whether it makes sense to look at alternatives based on that return on invested capital and payoff periods. Or, to a lesser degree, it would have an intangible but real benefit to the business when it comes to brand or retention rates and really differentiates us from the peers.

因此，要么投資資本有直接回報，例如，我們知道，尋求傳統供暖系統的替代品。可能是這樣——我們節省的能源可以帶來 5 年或任何可能的回報，我們將評估根據投資資本回報率和回報期尋找替代方案是否有意義。或者，在較小程度上，當涉及品牌或保留率時，它會為企業帶來無形但真正的好處，並使我們真正從同行中脫穎而出。

So the approach is actually largely similar to any other CapEx that we spent, every dollar of CapEx that we spend, the team presents based on a return on invested capital approach and we evaluate whether that's a sufficient return on that capital or not and we make decisions accordingly.

因此，該方法實際上與我們花費的任何其他資本支出非常相似，我們花費的每一美元資本支出，團隊都會根據投資資本回報率方法提出，我們評估這是否是該資本的足夠回報，然後我們做出做出相應的決定。

Next question comes from the line of [Robin Lu with Green Street].

下一個問題來自[Robin Lu with Green Street]的台詞。

I just want to go back to on the question on rent control. Are you assessing local municipalities are cranking down on landlords and their adherence to rent control rules, are you hearing the policymakers are maybe perhaps looking at tightening rules further?

我只想回到租金管制問題。您是否在評估當地市政當局正在嚴厲打擊房東及其對租金管制規則的遵守，您是否聽說政策制定者可能正在考慮進一步收緊規則？

Difficult for me to comment on that. The only thing I can state is what I mentioned earlier, which is that we believe we've taken the necessary steps -- necessary and appropriate steps to preserve the available exemptions from rent control ordinances across our portfolio. And so it's a very -- that's a very property-specific and jurisdiction-specific thing, townships within New Jersey. So I can only comment on what we've done across our portfolio. I don't really know. It's hard for me to comment on where that goes more broadly.

我很難對此發表評論。我唯一能說的是我之前提到的，那就是我們相信我們已經採取了必要的步驟——必要且適當的步驟，以在我們的投資組合中保留租金管制條例的可用豁免。因此，新澤西州的鄉鎮是一個非常特定於財產和司法管轄區的事情。因此，我只能評論我們在整個投資組合中所做的事情。我真的不知道。我很難對更廣泛的情況發表評論。

Okay. And then do you mind providing color on the preferred interest redemption in October. What drove the LP to redeem at a time when I guess operating fundamentals are still pretty healthy across your portfolio?

好的。然後您介意提供有關 10 月份優先利息贖回的資訊嗎？當我認為您的投資組合的營運基本面仍然相當健康時，是什麼促使有限合夥人贖回？

Again, hard to me to comment on that, Robin. It's their decision. You'd need to ask them. They've had the ability to redeem and chose to redeem it at this time. So it's hard for me to comment what that related to. It would be some sort of, I guess, a requirement for the capital from their side, but I'm not sure.

羅賓，我再次很難對此發表評論。這是他們的決定。你需要問他們。他們本來就有贖回的能力，並且在這個時候選擇了贖回。所以我很難評論與此相關的內容。我想，這可能是他們對資本的某種要求，但我不確定。

This concludes today's question-and-answer session. I would like to turn the floor back over to Mahbod Nia for closing comments.

今天的問答環節到此結束。我想將發言權交還給馬哈博德·尼亞 (Mahbod Nia) 以供結束評論。

Thank you, everyone, for joining us today. We're pleased to report another very strong quarter for various residential and look forward to updating you again in due course.

謝謝大家今天加入我們。我們很高興地報告各種住宅又一個非常強勁的季度，並期待在適當的時候再次向您通報最新情況。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。