Preferred Apartment Communities (APTS) 27 Feb 182017 Q4 Earnings call transcript

Good morning, ladies and gentleman and welcome to the Preferred Apartment Communities Fourth Quarter and Year End 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that today's event is being recorded. I would now like to introduce your host for today's conference call, Mr. Chief and President Silverstein, Operating Officer. Lenny ahead, go sir. Please

Chief thoughts. you our are morning Executive Investment DuPree, of Thank from market In to Boone and Preferred and with Williams, Dan of Officer; to fourth turning joining quarter each Executive year review be Accounting Also DuPree, Cronin, Executive earnings a Capital Chief chance this team. Preferred Murphy, Chief released you Office us and call yesterday of executive the Properties; and Chief that John moment, Chief Apartment hope Vice which Joel XXXX and Mike call. I’ll Officer welcome for New had and our Officer; the closed. over Officer Market his earnings our Executive a our to others for Chairman Officer ended We us management have John President report and Communities Properties; we our yearend today Vice fourth the Officer; Isakson, quarter our the Chairman Chief after

our of prepared we’ll to answer be conclusion any have. questions the Following pleased you might remarks,

Before note statements be statements and discussion release. these actual that press during materially. is everyone like differ may There and These we risks of a yesterday’s are about our risks forward-looking call. future guarantees and in uncertainties I’d made not and performance begin, various to involve results uncertainties may

that Unless to with indicate, call. outstanding used John supplemental partnership stock shares reconciliations be The today’s this fourth the are period. data this Williams. We John? we for non-GAAP the release definitions basic release press report your Our to be I’d of per our ended now information other performance. Class in encourage measures on results over that our turn and and A of and at discuss like found can financial units based and and average year to of you terms our financial quarter press site operating refer all may common morning on also we includes Web share pacapts.com. to otherwise review the financial during results weighted the call for

another macro Lenny. continue performance targeted stockholders. you, interest household On rates, and XXXX a and a to a of strong Above continue represented strong from in and earnings level, bump focus our employment strong Despite for operations. growth year demographic growth very all we strengthening our to benefit our we formation, and economy, Thank markets. on in

business. its for am performed associates nickels I said of is managing always properties XX still this pennies, how well have positioned how proud a XXXX. great a very and that real we a over and last are years changed. REIT We hasn’t dimes And in estate, and our year now

was XXXX I this our also [ph] solid [RMC] think through in during -- our recommended past through was inclusion recognized performance our December.

program result of to strategy. our Speaking will and to available that flexible third as to loan Both am activities I raising support intentionally through party us our We a capital be to believe capital continue real markets variety to of XXXX, time. us in property, estate our our raising we pleased from investment of capital advantage to program. allow acquisition acquisitions report time designed avenues take order of the to

stock public sold channels M volatility designed advisory investment independent preferred series dealer of to and For offering the example, not subject we and common to be stock broker our the programs to series market. A and the registered

before XXX and million in sold commissions December We X.X and expenses. an almost of stock have million of XX, XXXX our of aggregate preferred as XXXX approximately

of ability preferred don’t the [RA] sales In sell of growth would be if profits. channels, independent today's most our frozen through publicly any didn’t We XXXX. REITs capital through like we raising have common price. preferred traded and in our terms of broker to stock the dealer at sales current plan stock the pace the we to and [ph] environment, access for expect of We our continue capital to other stock

the rising of our stock environment. distribution financing very continue and fixed competitive line to we a adverse XXXX activities, capital of of us distinct these non-recourse the Because having rate to expect the So preferred mitigate risk bottom reduce to interest gives utilizing to rate grow impact during to a raising primarily accretion advantage. with

guarantees us partnership of acquisition property to to lender financing strategy finance expect our entities all effect And allowed property sheet create We level also which no has of our balance finance through continue a have fortress purpose like with [indiscernible]. to operating mortgages. for stockholders. believe in or single the to acquisitions each We to upstream us cross-collateralization enabled benefit no this

you the heard the not one IPO dividends invested As performance if have in company's XX.X%. all investment these lines stock, time. average is return over XXXX on common and annualized success reinvested dollars automatically by with thousand company's simply our financial April you of your a on have but would for us just me a say, performance measure your a Along been in received year reflected have

December of XXXX, XX, XX.X%. As

note, we The FFO and our FFO. that all going in growth XX in uses the Speaking times night, increased a we have our include FFO, of present XXXX forward of as of an applicable dividend core adjusted last a methodology XX.X%. report XXXX the NAREIT producing will standardized annualized definition definition using moment, we you dividends, the have to report that our noticed separate decided classic NAREIT XXXX results On IPO, that Lenny financial FFO. released first to falling in have may financial April numbers since dividend supplemental is our dividend data adopted This REITs. which

metrics FFO is inconsistency better FFO comparison of these allow from for on a and avoid financial of basis. REIT. uniform and industry. to the results adjusted to of definition matter no In an no to apples performance leads financial inconsistent However, other REIT we uniformity comparison. found will REIT report core This our for we our apple have reporting peers, there that words, with going to FFO lack to to To this forward our consequently

We to will no may but words, adjusted continue comparison. AFFO. AFFO other apples apples please realize In that other different be FFO report to from

Irma, I the exceeding of on the for hitting for resiliency XXXX. And our work, call year. to reaching goals and Before other and their about express XXXX. our entire our hard related numbers, turn over associates to appreciation produced to team by and remain Lenny all well committed want for past our committed effort speak focused during hurricanes Harvey and Despite bedlam I to more on my or goals weather as as focused disasters, remained we our

are with over REITs, Our performance and Lenny REITs. all if that best, and the [indiscernible] public among will of best Dan most the numbers certainly not go you the

of what example, level is training for most remain awards and and associates and our superior banquet, associates truly In associate positive December's XXX As important, to our to focus property honored TAC. product, to our be for never branding or immense their corporate individual throughout and creating the year. We committed unique industry. above on want XXX out plus all every our to last our performance achieved the we company our annual customers, committed and lose we a company in to have pride

we level for programs Our soaring success to have to [ph] associates essentials to associates, our soaring management responsibilities train our objectives, effective programs, company's levels of are principles management leadership expect fully of they [indiscernible] in junior in designed on philosophies, to these completion participants and leadership pack. called company. training leadership and can our [goals] Upon education to and disseminate these all become how more roles their respective the throughout

numbers. now to Lenny on you Let through me call our talk Lenny?

for year. FFO produced per Compared to Overall, operating increased excellent we Thanks, share XXXX XXXX, the results John. again XX.X%. our

Why you repeat don’t that Lenny?

core share our increased XX.X%. per And XX.X%. FFO

end this as various XXXX of million the the only past did track that end compared almost $XXX you total almost net XXXX of Switching increased look to XXXX. increase We our XXXX increase XX.X% beyond is increased XXXX. XXXX, believe assets fact more XXXX. metrics, compared to record billion, our by of our And statement to were FFO In an XX.X% XX% even at or FFO financial our FFO to to $X.X if impressive. XXXX depreciation of not of our XX% but compared performance

that multifamily is a of communities our million three sale maintaining our pleased portfolio sell of with REIT just of advantage proceeds time year average Now believe determine last and stockholders. this us from a that to gain. assets compared for the of usefulness net routinely $XXX additional an the review of of We At understand the X.X the we years, youngest asset approximately portfolio time to multifamily in objective competitors age which an which aggregate $XX growth the in our to to for is gross our million GAAP ones resulted in industry. million of and distinct multifamily $XXX

Our to for almost XXXX compared revenues to increased XXXX. million $XXX XX%

from revenues, from cash basis. on Following almost increased operations our $XX XX% to flow a year-over-year million

Pretty our starting were our X.X% numbers. this revenues Now put the into for above perspective, impressive to guidance year.

XXXX increased revenues compared impact to and Our XXXX caused significantly the in despite hurricanes Irma. Harvey by average financial

the across our multifamily Florida Texas, as reported, adversely as many damage previously significantly our our community rental rental at by of these reduced hurricanes revenues caused Arthur, our we effected Port As well communities. revenues

much property aggregate income in coverage will [ph]. statements time recorded coverages at as level as that benefits these other reimburse Port will receive we from approximately will $XXX,XXX financial in believe claims our insurance the which of we these well finally concluded, losses our expect are We as When revenues. Arthur of on of [receipt] insurance be us insurance our

we these impact our As on have a anticipate will result, positive a FFO. proceeds that

and quarter common core units our fourth XXXX increase and XX% year-over-year a enabled per Class we XX%. aggregate steady our very share partnership for to stockholders. holders our growth exceeded unit. and rate goal the a On to a dividend stockholders paid unit the XX.X%, common holders our of which dividends stock our of our paid of XX% goal to or represent record represents common we XXXX XXXX FFO For our to of pleased basis, clearly far also ratio payout $X.XX value A which a of with of with Again, below are consistency only compared have we

this will supplemental FFO track would XX% $XXX FFO, per for from as to $XXX for results million. which our XXXX our be released in the project data XXXX share. our I be share share $X.XX of than more $X.XX will we revenues this that $X.XX in XXXX, to projecting growth emphasize per is now million total continue impressive $X.XX We our to that FFO, guidance midpoint range of is with for record. we financial forward, report are per noted Going a want yesterday,

of progresses. hopeful are We as narrowing year the ranges these

of total aggregate end an currently least XXXX day, per also by XXXX. and at We is to stock increase our At our common drive to of too returns the FFO much, emphasize share compared XX% and we expect can't our the to for stockholders. goal during dividend as this overriding

Speaking of plan key strategic is a component of our our investment program. success,

on to color turn real and now Dan me to program. our the Let loan some acquisition provide investment Dan? activity DuPree call over estate our

Lenny. Thanks,

and objective together create housing student Our Class targeted, office while off-market of originate during to in loan investment on including returns ultimately of focus carefully is class at manage A considered portfolio A and In discounts, of anchored we and addition a select that providing strategic third pursuit with shopping continue best centers to to class pipeline acquisition this the grow grocery contractual multifamily construction. buildings. investments assets acquisitions, attractive opportunities party a strategy compelling provide estate real in

and we earlier financial could quarter investment we guidance vary result focused can affect quarter these released the and end, and by on a for year interim full we year, again results. that last today. timing the Street in call night acquisitions of have guidance But our provided the in activities Although to our the as are mentioned

this commitment active excluding Our loan is estate investments a loan an XX acquired program business. originated million have five We real estate loan program. overall investments Last aggregate $XX real six of multifamily total of estate of part investment our out a now representing real of and outstanding. communities land meaningful year investments, we loan

of As which commitments aggregating million of year-end has in already $XXX $XXX been million drawn.

a create nearly tremendous new Our of value, we loan. communities exercise options multifamily market billion if all estimated in aggregating the embedded program to loan of in each continued pipeline acquisition $X.X investment

XXXX acquired units. we representing $XXX closing approximately During XXXX, over cost excluding million of investment capital multifamily and XX communities

As of units and cities managed December multifamily XX, representing XXXX, we XX XX XX across XXXX in owned states. communities

XXXX student communities total units also on or states. housing We acquired year communities and three last four now representing XXX in beds of a four

plan, also business our invest centers we As our new in shopping part through platform. of grocery anchored market

total in Murphy shopping these XX the throughout grocery XX, markets anchored a Southeast moment centers In Mid-Atlantic, we seven December Texas. of states to a XX and across will discuss Joel of As owned ask we activities.

more recently, four southeastern in XXXX, fully high buildings subsidiary. owned properties. Texas we we well our the Preferred Additionally quality and almost through feet located, office At rentable have investing in across X.X began million of spread end Properties Office square the

As turn December will office portfolio company ability consistent, Joel? predictable, year, now for was earnings average XX% results terms. with of provide I These X.X over for Murphy. financial provide leased XX shareholders. approximately Joel stabilized property to acquisitions to last weighted our years our our predictable remaining importantly, which enhanced this lease our

Dan. Thanks,

subsidiary market capital to new focused are including portfolio results on leasing, centers. our retention, and renewals tenant new the intensely our the operating improvements We leasing of in

solid value our stages to centers, bad we these with sequentially market which rates, renewed portfolio Simply upstream we managed trends third back. lease each up of our XX basis XXX% our our we for we subsidiaries up new and put, results quarter of had different expense. space, have is XX the results combination XX expenses outstanding have of allowed in 'XX centers higher year-over-year The at phases. leased. centers, and XX quarter the leased, very XX.X% the Of end on our little the overall centers positive we vacant two basis points a leased We now basis. continued our are are fourth of XXX of kept add which we leasing of a from points debt

representing approximately XXX acquisition We $XX.X sequentially core increase year-over-year. of increase, the during the two on acquisition fourth leased these properties, basis an quarter, completed aggregate points as the having an XX.X% the an end million XX and of of our Excluding including XX quarter of are centers, third the of points again quarter, end basis of two fourth investment expenses.

completed year of acquisitions, expenses. we the For aggregate investment an million acquisition $XXX including having eight approximately

of focused and square All high sunbelt in our examples that the per by a strategy, has foot good market of these demographics. centers anchored store, excellent are with is solid grocer leading located market sales

portfolio We of also year. several achieved strategic our the goals growth last with following. Statistically

First, one further market one Charlotte, a mentioned just with and Carolina they another dominant market in North one grocer. we we Two, with I one Teeter we are a entry made in was Raleigh. which centers, added Harris into penetrated Charlotte center where two the

we Third, diversified Florida we further public a penetrated tenant South anchored three with and mile demographic our portfolio anchored we fifth, three center. densities household and our metrics average based, the mile on income. up moved in Four, based

over while product and million the now, we diligent acquisition type XX tight do in opportunities sunbelt due and do new our as states, seven strategy, disciplined year, geographic about our pricing. independent on end markets, place diligence the XX of are feet our square inside the being we staying also and totals on own centers, We So very anchored of active market also leases. very over $X.X as which XXX operating different grocery remain

let back call turn Williams. John Now me to the John?

that I real Joel. believe for foreseeable and positive on estate you, note. be in the continue Thank future will strong still a will fundamentals

We opportunities. results very about year, fourth and for quarter are and pleased for growth financial our the the our

stockholders of dilution. confident employing able through be these capital, capital our Sales from stock including through overnight to our common sales We we our sources, of that we available save facilities finance stock of program, variety by through growth significant continue our a be to to of from By Key led able and under our loan AGM preferred Bank. offerings. common our are from and transactions the borrowings sources will

depth continuing this for We to to their In Hire believe our management their our them our key down associates. well, I In associate team them believe the the of accomplishments. and and addition, in success. firmly the end, reward them strength quality simple and of associates, for train great the our comes recognize achievements is principles. experience

turn several call. have asked Before anticipation the to been I questions today's over there call the are in of operator, we

go of multifamily were But and down of XXXX. has last probably another X% to multifamily annual total down XXXX sector First were I peaked strong peak. XXXX, answer the compared a XX.XX%, Also were year. in starts XX.X%. one. this question having third in will to quarter and Deliveries XX.X% compared XXXX now starts fourth XXXX,

John, I statistics to So, you give know you have some would us. like

Sure. Thanks, John.

on put pressure which the increase pursue can lead originations. Personally, drop regulations multifamily a of the balance bodes imposed in I conservative which loans, I these with it battle development equity declines have banks hire imagine, in to the unfortunately rules you new caused rules last particular, from and banks [ph] occupancy requirements the have has [HVCRE] lower starting were to the to more industry as on sheet. think years. amount and XXXX, the likely rates. permitting In required over couple as think And commercial supply banks meaningful the and of time the for such a one loan as caused for with rules well

have fact of to physical the the I In couple market. the clearly impact in overall attribute we over at months. our of last rate seen multifamily part on III increase BASEL Which certainly least occupancy

of you The more you. will for Lenny, going you forward. us dividends about treat us tax information law how dividends is, will federal next tax Thank can your and please? please that treatment the some question answer XXXX the new

your of any common XXXX capital. purposes tax dividend you for of of XXXX should means of almost of and XX.X% any not XXXX of dividends for are a Sure. by dividends stock treated like Rather, the preferred a incur tax common capital. on and lowered on A treated dividends This return should as stock stock simply amount. as XXX% or return the our our you your preferred XXXX be basis stock share receive on course for

applicable Consequently, tax to estate In in a investment not XXXX, dividends of capital the more trust on encourage advisor tax you stock REIT, your law to for from like deduction return could to total the subject We with new as as information dividends. relate received. of increasing a or us, other points on your consult you receive dividends any tax thereby those they dividends portion laws overall are to federal us the rate you. lower real the effective are maybe value addition, starting that you XX% specific treated that to of this under the a receive tax equal of new these

What ecommerce acquisition you seeing anchors, in Lenny. Thanks, Joel? will of as on to to effect grocer to sooner the the the growth grocery strategy store Joel Amazon it your Foods. I are your in this the there on answer call Murphy respect with is Whole sectors, any relates question.

Yes. Thanks, John.

Foods Let that 'XX. first, August of that closed the acquisition very half me the private how Whole the in take interesting back have markets Amazon of question It's responded.

the and successful the of strategy effective to of aggressive We bricks and buyers, in pension Including acquire centers execution [solid] pools capital grocer sources transaction anchored centers offices, connection in family mortar grocery ultimately Many funds private prospects that invest cross-border capital are the in of do, be Amazon that capital. [ph] grocery business are the to continued and as the trying sunbelt. we strategy. believe, a or future reiterates ecommerce in good with importance anchored the

are on strategy our rates a for We are believe vindication anchored our which seeing really reasons. cap in necessity consistent that we of these grocery these to for centers be with pressure strategy. market based acceptance downward And

with of part also and and are by the big investing you their enhance earlier invest part advantage on our them to And are opportunities of is we the hear And the active we, specifically, their to buy relates did in which specifically to XXXX big [ph]. remodel grocers with it distribution looking level, the seeing [publics] store to Kroger within homes. party These our of and changes has car at [Used control traditional and ecommerce capital customers' ,Kroger stores, we the on metrics this operating parties our they of miles network stores my solid pickup in mechanisms to are delivery is and of at are description [indiscernible], presented grocery of network. take technology our ecommerce. XXXX the And they stores this, to in one control continuing have in-store to anchors for like back conversations become and three investment stores, buy that that are As we call, up growth Shift] further called the and a stock stores, a third [ph] store. also pick to working successful they very platforms. centers, online are

you John Thank company. and you you, the John, is, The next interest would on about question can Joel. Isakson. please the rising take talk effect rates that,

[indiscernible]. to lead after a million rate XXXX be the a of financial XX% refinancing likely current million fixed an further insulated shorter that or place from assets is outstanding XX Said XXXX. Sure. in to XXXX. properties million in of Thanks, program Collectively, X-year in outstanding basis do $XXX has floating maturities to risen our company value are since debt us $XXX the about has. rate in rates. improved matures terms, about NOI. our X.X%. the same of debt in points company Since September has of over financing The spikes more less XX% than interest improvement and properties in points year, add is XXXX, will differently, that $XXX capital John. what total debt from have the XX PAC using X have has which this all generally period basis treasury have loans longer XX-year under just about in but And These rate XX insulating X.X% fairly last well loans. around over The risen of term increases

our XXXX we January of loans were multifamily of examine example, one acquisition in using a For [indiscernible]. preliminary

of than of near fixed The that X.XX% a year XXXX maturities of rate we the and rate rise on that the expect on to over to Since outstanding a future base X.XX% track spreads the current index this indexed balance will help XX in the property, this line debt. at floating degree. we company's loan environment, represents Following some a term. certain of some approximately in of approximately are the of more the offset capitalizations fourth expect one we to completion In company's third the a the refinance contraction seeing.

addition, not strategy growth conservative employs does in proceeds. [foreign] allows pursue for materially PAC does This our borrowing rates [ph] In generally affect which more not and rise max strategy strategy our plans. or impede

addition, by we million operating John? speaking, Bank $XX facility. In overall PAC on LIBOR our over percentage partnership of borrowings. loan as small a only of pretty based Key our is revolver led but have Generally that’s today, outstanding that

Thank you you, how overall question please it. is And to answer subsidiary the and allocated with the this last question. is, capital strategy is Office your will Boone, what John.

Sure, all core John. REIT's complementary the multifamily like We profile investments holdings. of to our the relative

remaining of acquisition close years housing totals subsequent contractual rent leases to buying high leases customers of versus earnings These long-term apartment residents recent average we lease annual cycle, weighted multiyear X.X months year-end leased term. million XX we businesses. X our get We Armour our with than feet, to properties more buildings the multifamily supplementing throughout and predictable student corporate growth. our with growth out Today, portfolio of the stands XX% and get including square occupancy are provide to characteristics approximately Yards office

in our as new real development in by investment near pipeline participation continue through in office like to best property, to selected Similar risk with estate as owning fundamentals. to loaded. preleasing, acquisition assets term primarily development tier investment well similar profile a real and provide for estate look PACs or locations market program loan and/or cost date, structuring basis core it class investments loan times to often are mitigate We opportunities our investments will to opportunities attributes or top

having competing me. but I and PAC. capital, have cornerstone product be multifamily And allocated investment each target Multifamily been does is think same Lenny fit. certainly strategic very with type in We really operate John, to agree by long-term we quiver. having evaluating the priority. a meritocracy community on capital allocation REIT a adjusted arrows said, Dan economics of to is terms benefit In how few of with a them, the across risk for respect much don’t That continues and from a by transaction with would its

but see to We less in that and the to product we and of types first favor allocation more multifamily different to cycle. will opportunities continue take or advantage different look are business often foremost our times that. collectively for And

have. I to open the Boone. Thanks, thoughts or turn any would for call like to operator other floor you the and questions back our to may Operator?

question first Securities Benda Our Instructions] [Operator John comes go ahead. from of National Corporation. Please

So right assets. for takedown quickly, Could three or next months opening. purchase schedule several seems are to on us two going those in now windows it the be you a thinking like of give options are there better idea guys what you

John DuPree an answer. give call in Dan to I can and maybe Thanks, us

got probably of that is we have six Yes, for will John, the there the purchase exercise projects -- options. up come

and where purchase the for said Each rates here, those us option we a what each one. presents the is them have strategy on opportunity will -- of have different influence cap about and strategy as we strategies we probably We on. are discount unique as devising there will kind allow are to a buy

So in. going giving end are they us the fall on am answer it's I day definitely the in not to when I of value this exactly and they significant at squarely sure will just of to XXXX. I am evolving you but sort know contribute

rate rent you on Preferred shield you. are a kind increases little retail the from And give Can any Thank specifically help that build color escalators portfolio. more in about us Great. Okay. that then just leases, of the forward. will individual

us little and are Yes. the leases that at. Joel, a your income can bit looking you increases tell you about

Yes.

John, So, things. two

bad piece in or But is good our about large is rise [indiscernible] we have news it's I leases. spreads, on have said us, say attractive context and are income long your leases. know know, rent we as gone question you that The the is rate side we As address fixed news, whereas we would of of to you properties. to have against it's debt the we seeing portfolio have those

tenants that got and have Harris like are they credit and with Teeter, We leases flat. are and longer Kroger term, Publix

saw of increases. them small of some And amount

you So about really the really your we like and need to that’s growth get what portfolio.

the your are portfolio to streams. seeing need but we rental get you from halfish So the other of nice growth

You three in can ways. that do really

can vacant lease space, which doing. are You we

peoples market can we options elect, space new like, to increases. have award they move and third, can that which or which can we it You with do comes Or contractual do. we

strategies all drive existing those three So in the been income of we portfolio. really the growth to doing have

Okay. And [recop] in Dawson that there that any for for [ph] marketplace. then loans. lastly, retail I originated loan future about there Can a opportunities development might was know talk be in you portfolio the

Yes.

think, right. are I you John,

have one deal the with Dawson, up done on there. deal Properties We the Kroger Haven

multifamily, reason Historically store think that grocery last is the on mezz is a the amount I piece is fits is changing One, into there XX really with really over lot. really challenging supply retail low. side there I that see very years coming really the a And well two. space. the it's like small little don’t of a

for our many new is bode opportunities So which existing that portfolio. there well not does

That’s is centers put in right I for this screen think don’t that of small very in have is what my not have experience not an of us, announce And the something very a XX% specific it's will deep now. Second financing these joint like to to deal developers. on with The radar have team mezz. is definitely comment. a still very a signed not on hard that. me and anchored have do thing and we Kroger, Dan got we things if future. developing a have equity, have you doing deals Where that the others with with anything big developers, take traditional get or all John, is they is, on lease we each big, to And since ventures grocery and then our that’s DuPree the And individually market. on make would we Publix slice and to at to seen

Yes.

selectively potential that and multifamily believe side business in XXXX Just are mezz is loans. pretty we of mezz a office anticipating the the for starts robust loan on we and there

XXXX, loans be a in are for mezz to driver believe. us going I So

from Jim ahead. Davidson. next go of D.A. Our question Please comes Lykins

options. the purchase the for First, properties with

near For ones for and XX specifically does When option over the the open the stabilization supplemental plus any shown term. was in those days. window the purchase

in I DuPree will answer to call Dan? that. Dan

Yes.

dates at a have We make option exercised windows to schedule of to the of windows those the have purchase stabilization. and a we hit point it got sure ability monitor and that adjust we we

they of out the are got have the course and We much pretty year. over -- spread

XXXX, for overly to not an in that looking equitable is We have other. price the we one in can When them. the are they they direction now key But weighted at got six reach them or determine we are when stabilization.

are have getting one stabilization. got others stabilization, real We couple the that So with in And are what specificity are exercise looking key is XX%, I of on in we now circle maybe we can here it to to and we lease. you these these back I at will ready assets more right next follow. and guess Jim to XX% going reach you simply give buy days the want to when but assets

the that Okay. When are the say are recounting you in six as few those not or -- that shown including some next three is days. Or XX the is months that XXXX, of stabilization over plus you too? four

am stabilization we that properties counting assets, in all XXXX. in reaching XXXX all I mean those anticipate I those Yes.

one Okay. question, market All is a guess right. And then so Joel. for new I this

Would have that -- likely imply conversations tenants number. with through are are hundred to be environment approaching in got when retail renew. in right the pretty guys are I the what now just wondering So XX retail now, looking am you around? the right significant that we runway they you have centers occupied, to other pushing this percent some

Jim, kind talked on meeting hearing that actually yesterday. specifically. was that listening leasing question my I if you about on in wondering of were We

opportunity out will is example in XX we you space that and that high got I when be specific comes got that are an to question the some contractual space market get have back. but that also on XXX% not more that willing is you when that, not get an after since move to I up have of going and and mean feel a space have do XX. do get are have because team do that rate. so yield being outsized occupancy, months. have to occupied you have And we told couple know kind You you three an be option. that there lease do next options significantly, of you a an XX you at But of at that means lease, rent up it have to at increase is What a for to to higher opportunity they If like that you of extend following means can they I level these that rent on the on increases. we take John's to is

So, level yes, occupancy, of to push right. start to when get do that you you

Our of next Please SunTrust. from ahead. question Lewis Michael comes go

just First, I to ask. wanted

move am I But REIT accounting a of and start am is. to like I of that, when it's share more an sounds that think NAREIT in really I does I it count, share good quoting aware comparable using why that. makes it reason wonder FFO not another or base assuming companies. there Is FFO, quoting with correct per are a other you that

No.

on report to basics. chosen just have We

second Okay. My for question John.

in you offer. or to price kind the either tenure your prices off shares those the think started your shares if changes are continues slowdown interest of expect become preferred preferred if Do selling going of rise, valuable up you continue rates but you. And shares they well. investors mix to that any maybe less comments go rates the capital You the of pace and down. as wonder need those appreciate I obviously to in I options the to It to to up. available about obviously raising are stock

we warrant. Well, on which preferred of of have of kicker of X% paying monthly with a had indicates the a dividend along less the strength a X% the than redemptions stock

So for had matter fact business. a stock have of the preferred and as sales we we had we we have have year, so of sales, strongest the in slowdown been of the since seen our any have in not the first months two

along Okay. same those And then lines...

from three the that. But that in take to in Michael, we of business. us would four ability require sell underwriting not or the rates would REIT another points, but look change every only another go up a Obviously, if at lot

We on the are advantage. sell stock actually competitive paying that which preferred the can a common we cheaper fact gives than our we at tremendous -- us stock dividend a dividend X% is monthly are

proper spread. A we when make to be in Class high Let's still assets the can able us buy accretion quality

I Yes. understand...

have we the Michael, off public [indiscernible] when [indiscernible] in well what time. long markets too been public those cuts know markets. for a We happens the in

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Correct.

Sure.

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have We FFO. also we are always but reporting FFO core reported

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we increases last in have Lenny do it don’t as are to start ourselves expecting we in back been said, always have substantial had 'XX the not not You we FFO comparing compare only FFO FFO us FFO, and with we to FFO. performance the are can since core outperforms we And 'XX. ever and FFO and Core 'XX but again because over business. in to

ask just could more. one I if Maybe Understood.

high you have the -- for this I wondering is dividend impacts was forward the going But about to regarding continue or your decision now really think I whether yield on if if... raising answered yield dividend John. yield just me that X%. already,

any affects sell our common. willingness No, it definitely to

common our thank price the that program. common through sell capital bet stock right substantial we at continue we any anything now. of is ability stock You raise the preferred have god can capital, like to to that our And amounts won't

XX% that asking the the raise that. to you I the at pace could I understand are... was given yields more same continue if dividend

We are committed to raising our dividend.

Okay.

Yes.

will We in our will in quarter we will we talk call will next the fourth raise dividend I call the and it. dividend. raise another about the the of increase about talk you promise also

company we We year for think concluding the I thank to to you promise XX%. numbers. increasing are the committed FFO for and this committed same for I are on given are I want the are and you That’s being the on next for a XX% dividend raising to that by if this the today. everybody call. operator, call will the we have call time, you With

the We which is folks have quarter. see good. you very call, on And will of record next a number we

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

may disconnect lines. You your now