Preferred Apartment Communities (APTS) 26 Feb 192018 Q4 Earnings call transcript

Good day, and welcome to the Preferred Apartment Communities' Fourth Quarter and Year Ended 2018 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jared Seff, Assistant General Counsel. Please go ahead.

Thank you for joining us this morning, and welcome to Preferred Apartment Communities' fourth quarter and year ended 2018 earnings call. market of quarter had report and released after each review chance which that yesterday fourth our year the hope you a have to was We closed. ended earnings turning In a our and Executive Chief call to for thoughts. Dan Chairman his the Officer, moment, DuPree, over be I'll business Silverstein, of today Accounting Officer; President Mike subsidiaries. our Vice Chief and our our Chief with us our Isakson, Financial Also Operating and Chief leaders the Officer; various are Lenny Chairman, Officer; John Cronin, Cullen, Paul Boone Sherman, and Jeff Joel DuPree. Murphy

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

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

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

growth, terms the really quarter in and stockholders. again same-store our solid results had strong produced We of a Jared. and dividend for Thanks, for year fourth FFO

asset our XXXX. continued during acquisition strategy also We

fresh, gain a six we To housing three the year portfolio three multifamily our of older keep office Classes sold aggregating A buildings. a shopping almost communities, we total on acquired and five GAAP anchored million our multifamily grocery communities of basis. student of communities, For four centers, $XX

deployed those properties. the newer we Now in net proceeds

was limited per Our combined IRR a on and clearly on These near-term our had sales cash four our sheet positively impact flow those but FFO impacted balance share. over XX%. transactions

to Our loan of a investment mainstay estate real program continues growth be strategy. our

we XXXX representing this multifamily investment. $XXX aggregate of three During acquired communities program through million an of

able purchase through approximately embedded to approximately assets. represents assets of which funded; end generate our been contained book in the estate over while all, of quality real As of through of getting to loan of which $XXX options prospective of are to XX% a $XXX IRRs million XX% in these are $XXX has access we All this the this program new off-market loans. XXXX, loan commitments over million pipeline million of

a advantage due which and M have We of that the consistency securities to our dealer. distinct capital preferred capital to investments in availability Series provided is A Series pursuing through competitive broker preferred sold affiliated is stock our

have past of pace This through almost continue we an sales throughout in expect innovative we -- February, $XXX balance February XXXX of raising to alone million of the preferred a we're program. $XX During capital raised million stock sold of strong yes, aggregate XXXX. over this and we still

that XXXX. received reinvested of $XXXX December all common our dividends mind, been in on year XXXX, in say performance average this With if company's quarter us with financial it's heard return-on-investment you've reflected IPO for for as would of you and of not had have performance invested As one success matter in annualized stock; or automatically your XX, in before, simply the just but measure a one your us company's the April is just overtime. XX.X%

an producing growth have since the have function to for we rate XXx a XX.X%. increased as from a common of our and going As our stock hear parts people team important IPO dividend Lenny morning and Lenny? you're dividend talk dividends and about results. our key Silverstein, annualized this dividends, following of President who We Operating first of who responsibility fourth start our number will Chief quarter Officer, over with XXXX strategy. our We'll

greater the Dan. for Thanks, outstanding revenues $XXX.X operating results produced or again once We the over earned quarter. were last million quarter year. fourth fourth the for Revenues for fourth quarter the XX% than

share XX.X% XXXX for compared common per to fourth $X.XX in approximately quarter FFO for increase allowed or greater payable per for These fourth stockholders which the outstanding paid quarter FFO our per was operating the than the fourth quarter a to Our million X% our $XX.X for XXXX results last the year. $X.XX fourth share represents XXXX. of again us dividend stock share or to dividend quarter increase to the quarter of the

than full greater XX.X% revenues For the year revenues $XXXmillion our our or were XXXX. for

total Our to representing paid common stock we dividends an share over board. dividends XXXX. these very increase our all, XXXX per per report $X.XX were for in FFO X.X% growth over increase the $X.XX the pleased was are across XXXX paid And strong representing In a share XXXX. X.X% metrics

common X.X XXXX unit connection we quarter XX, of and year aggregate warrant December previously also XXXX. our shares common with million had under or increase the as end the Series we an fourth issued our shares XX.X to this of million compared of of stock for representing outstanding $XX.X X.X% of an shares approximately of million Overall, million issued offering. exercise the approximately stock During X.X preferred A approximately in stock approximately of

shares way. outstanding other focus we continue And statement switching metrics, have our in on to a we the number will assets to stock. to add quality continue As meaningful financial previously disclosed, common to of of our we increasing

X increase of properties. growth sale our total properties, by XX.X% by XX billion XXXX. driven approximately XXXX, XXXX $X.X For was approximately were net of primarily the compared assets acquisition billion offset $X.X to or This depreciation in or of partially of the an

million approximately to market capital compared In our Isakson, operations will Officer, a John flow flow cash XXXX increasing which cash [ph]. in from XX.X% strategy. increase our assets addition to John? now XXXX our Financial total discuss represents for Chief $XXX.X was

Lenny. Thanks,

expect we the the on and XX rates remains environment in cap anchored multifamily acquisition remain shopping to low acquisitions XXXX higher. office have with will the rates Class Interest grocery have been the For current volatile A months center last but rates which cap stabilize potential uncertain.

year. anticipated retreat rates interest an dramatic XXXX While of saw sudden in and however was the unexpected what the rise, the at end was

the With a more potentially hikes we equity the in cooling, rate see and its rate environment markets tempering Fed XXXX. can stable

portfolio our the rates level environment, our the are and strategy. in interest volatility have cautious acquisition taken XX% of property financing debt Approximately has variable or recent and the fixed capped. we a mortgage permanent uncertainty that approach Given to rates interest

a rate and represents percentage floating XXXX. year the our in portfolio, to to the We more debt X of line of $XXX rate maturity You as decline years XXXX the may rate corporate in do credit, our at fixed conversions term. the of for and debt in we extending refinanced for on in a to note the floating giving debt million recently our of that floating an additional closed end flexibility expansion we'll of fixed good this portion look us

increase In under believe need allows an the will current the zero expand to total well event the borrowings and the to million. the capacity line have of line, as capacity foreseeable any up today we us we line us to $XXX for Our we of would feature accordion of of future. serve are credit the a that of

maturing types rate property for and have acquisition term of longer all with of loans advantage front, we our to drop terms. fixed the refinance On debt have the attractive recent been rates utilizing taken in

have $XX in XXXX We maturing refinance. million to approximately debt of remaining

and rate will look interest have environment, process rates to We already securing practicable. soon new given current the lock of in we the for as these as begun debt assets our

borrower with agencies. For enjoy status primary Freddie equal Fannie and have relationships and assets. our to life for We financial multifamily Retail portfolio, companies Mae multifamily lenders. remain our and are terms both assets excellent our typically Mac preferred

are maybe through Sherman, quarter although responsible longer. terms insurance comparable results. now aspects are to all discuss Jeff? will is also business, Jeff companies financed and our XXXX retail who life our transactions office primarily multifamily, multifamily with maturities Our of the and that for generally fourth

Thanks, John.

at back well. performed very multifamily look our we As portfolio XXXX,

year was results. our set year net that and ended the experiencing set growth rental expenses operational tax able inflation. group doubled and X our environment management our included This were same-store MSAs. in were to and year-over-year achieved multifamily which This It set, and than top on place properties. XXXX X.X% our performance also states MSAs properties total to XX, XXXX year-over-year, income team property which was revenue revenue of intensified our all XX, Property new income growth X% is operating under and December a us REIT covers successful four significant believe ended noting of worth an taxes versus revenue X.X% same-store for the XX while states eight net XXXX, We among the expense limit X.X% December peers. and XXXX, XXXX year-over-year focus composition XX from our management more X.X% in same-store asset results For property in XX operating in reflecting year-over-year. variable achieved to respectively. Same-store growth growth, operational holding in

real investment. two dispositions we fourth loan two in active acquisitions, Moving to the investments, remained with one quarter and estate

Class Park A and acquisition, located first View Our is community XXXX. in built unit Charlotte, a in Carolina XXX City North South

acquisition Our us. A barrier unit and Hills. suburb completed This Hills the a and schools demographic. in Birmingham, many excellent boxes Vestavia of affluent market checked community, is with Reserve for XXXX second Class Vestavia a entry acquisition, so Alabama high the in to XXX is Vestavia located

Austin, cap mentioned, quarter. was return we on in generated portfolio. sale resulted it a on annualized in for sold the McNeil property approximate XX% gain previously XX.X in approximately our rate in trailing assets built million. Texas financials, close Ranch to fourth and a also oldest which and two located sold X.X% It's making the of XXXX, in As

Nashville, a these demonstrate in sale sale. assets $XX.X at at age to an million. to properties the X.X maximize vintage returns years portfolio of to of ability old multifamily annualized of Additionally, property sales stockholders. and approximately we decreased Farms, continues resulted our our gain average sale generated time dispose on operate our the acquire, a return Further, sold sale these approximate XX% to Stoneridge of Tennessee. This located of The in XXXX and

As exposure capital maintain industry expenditures our that portfolio and we've to in youngest time advantage over competitive a design, maintains strategy and product. shows the technology in product over limits the older outlined previously, our to our function

real Class Florida. construction our community located multifamily of Jacksonville, investment program, a to up A in aggregate loan on for unit, of turning million Finally, $XX.X we investment estate an to loan the close XXX

units. XXXX With now consists over multifamily portfolio XX the addition investment projects, of this multifamily investment, PAC's of totaling

now Preferred Cullen, of me student division. housing Paul call the Communities, Let Paul? head our Campus

Jeff. Thanks,

Our center distance in acquiring the universities that strategy within are remains Tier to X on at of student respective the campus. housing focused best class walking properties located

of end consists in start this season as across X of activities X to past the with Our year. academic XXXX strong the quarter's portfolio X,XXX the move-in properties of now reflect beds. fall, XXXX-XXXX Starting fourth the states different successful universities, totaling the X

of portfolio Our has the an occupancy as occupancy having with December XX portfolio stabilized entire physical student average average of physical XX.X%. of an XX.X%

We're XXXX, Not on continue new another renewing year, addition, set also residents our with with on now hard leasing we performing leases. expectations. for rate signing academic operating we our with and lease-up. to results rental strong resident surprisingly, existing in to stabilized see produce In strong focus line working properties XXXX

actively housing in community Communities new Atlanta Preferred academic XX% KSU currently pre-leased and campus leasing up housing company developments. districts management now for of approximately are as a University real student XX,XXX call originate management approximately housing has near students. continue mezzanine Stadium community. Village today we for property master student planned is estate year. loan of affiliated currently XXXX-XXXX new XXX-bed the State where We sometimes currently investments, third-party Kennesaw seek student which time student our an is the has acquisition Preferred and This new Campus to loans development housing enrollment

another quarter phase KSU second fourth build this the for we in community XX.X PAC loan to growth, division This year, produce the also foreseeable community will In mezzanine consistent occupancy the developer same million. XXX-bed housing at to lease-up. loan housing community last rent originated future. a During student our all, steady metrics mezzanine The property. is with be currently student for the mid-rise phase second look with X-storey

Let the new Joel me grocery-anchored centers division. Joel? Murphy, market on now shopping call of head

Paul. you, Thank

We are and another pleased quarter operating to overall year report performance. strong of

suburban that the centers and grocery We in Mid-Atlantic Texas. in strategy continue submarkets acquire, metros investment to from quality execute criteria anchored our within the invest fit XXX and Austin, southeast to our operate in or in submarket anchors that and two that We dominant market and particular share stores have number growing one center. store grocery market number high maintain a sales that target are centers that volume top

our result happy Sears, of which exposure for of daily to XX excluding and centers XXXX, product had was Toys and filings at XXXX Leasing The our early focus. X.X leased. we Mattress redevelopment, the tenants was total feet square Us consisting portfolio the type anchored a tenants leased. are keeping end As Payless Firm, Shoes. strategy, and XX.X% grocery XXXX new "R" bankruptcy focused aggregating highly includes in this zero portfolio, At space publicized approximately million XX.X% two centers of Kmart,

store both grocery the on anchor lease their their rolling of contractual of our particularly at and rates. pleased renewals with in portfolio leases a and tenants. had them, XXXX, renewed also that momentum on in-line past our lease Every We anchors year, this are four quarter

we foot is by market of that January, Hollymead early has very a This affluent Kroger in and Virginia in Center in XX,XXX by located Crossing, our anchors located also seven of the again Hollymead in of of the Richmond. their volume to asset Sunbelt, in our center have market-leading anchored in barrier Virginia store renewed demographics. center and foot in desirable have per Richmond. have and by Both contractual In our solid grocer leases high examples first Town high sales high square and square [indiscernible] strategy, West asset and XXXX, December It square has shadow-anchored that As Gayton suburban close store After in acquisition first anchored our XXXX, of in our Harris the we this Kroger centers store a is center. second acquired their center a these we shopping in first excellent store. Charlottesville, entry at focused on with occupied grocery closed anchored four is Target. the The are mid-Atlantic foot a End highly them of rates. quarter already by submarket rolling is leases, of is XXX,XXX Virginia, submarket quality Target a

In excellent addition to our we portfolio goals achieved several during with performance, strategic operating XXXX.

acquisitions. entry First, into Virginia we these made -- into with a market market two

penetrated center. South one anchored our and third, Publix expanded Florida And North with we Carolina, in Second, presence two centers. with Publix anchored further we Central

the of these we throughout attainment. enhance mile outstanding centers at our subsidiary renewed expense three kept vacant our of average All upstream had we on our combination initiatives our portfolio market released rates, expenses, debt demographic we cylinders The of new we little these managed the executed We PAC. very metrics density, quarter and higher educational in trends to household year, income positive all fourth space, leased, and grew results our to bad allowed and portfolio.

Kroger, markets, leases. square by feet centers states these Both more approximately independent XXX grocery-anchored yet totaling Publix operating than and XX although we anchored XX XX X banners. X.X they anchored in in announced $X are generated by of of approximately centers with XX results, Harris in are Publix today, have and each the now market in As Kroger own share are million billion XXXX Teeter earnings not XXXX. leaders,

Division. Office to Now, our Boone? over of Head Boone let the turn me call DuPree, the

deal buying Thanks, Park division a Capitol a Tech Charlotte Joel. Georgia leased. were to Capitol closing customer the called ahead of after substantially that The In new office originating square we XX,XXX the for new to the Towers terms timing fourth development our days economic to X closed and a signed quarter X the and South next loan underwriting. of XX% last Towers, West two year, bring Atlanta. in project investments, property in foot

relationships highly So, category like the development and This we loan be couple the for reward entering a sponsor, local office Besides one the equally office location, of for result ability we've been PAC, West nimble. risk quality the of of nice the closing. win and the company been first a of was reflection it's strategic high for marking that's X selective West order reasons. quarter, investment to an our of our is in on a and X positive product profitable for qualifiers side.

insulating basis, dollar. from can other means second, team more benefits developer $XX a the sits coming cash it projects offer to cost First, the loan for below And which lease of at XX% terms. market, space investment equity, our million competitive first behind

team building. developer this construction, under site for XXXX a completing X-storey the call, work of of the As and is delivery targeting middle

have on the option stabilized million and we other X once leased to to our good have over soon. PAC have property square pipeline the feet Like report of news it occupancy. investments, in prospects purchase front expect achieves to loan that We an

under West, Excluding Southeast construction, X.X more portfolio and PAC weighted million is X XX% feet average A with square which ended years with lease office X QX the was Class of of remaining. than leased, term Texas. That across

be IHG, XX% to tenants last together the renovation design rate long-term pick Carolina. and mostly Fayetteville & and XXX a North base building's amenities. redevelopment, in planned for Albemarle, maturity begin than first substantially July of elevators company quarter summer. the USAA square initiatives, represent immediately plaza, will and off years earliest Construction is key and and of in the in the portfolio our and of XXX,XXX Raleigh, several more rent this acquired property management delivered full a Farm, We're currently this most excluding in asset We kicked carry expected of State lobby, is for notably, XXXX the repositioning lease X foot life XX which of Galleria financed remaining total top Clarke Our XX fixed property, term. Harley is The debt comes portfolio of XXXX.

one Fayetteville XXX the tallest and lease and recognizable iconic of Raleigh, its accelerating buildings economics we in will is absorption, believe drive context, most will Downtown Raleigh. in stature retention These enhancements some building. For reaffirm which in

new and beat Within each to our underwriting the beat investment, budget to our and goal budget. real portfolio is opportunities, find with estate accretive to execute

life And reflect $X today a GAAP price of or portfolio commitment. of average on internal NOI purchase our average earned less investment. that is results Our yield is The QX GAAP rate on approximately weighted for basis. ahead the a X.X% cap million than NOI through initial on two-year underwriting total

bring major continue growth executing expertise. markets, this We while high to with Texas outperforming our to within the providing scale identifying will of risk in look portfolio you Southeastern to and that, we'll quarters. expectations our call implementing investments, coming have and managing where I and operating to turn we profitable level focus strategy back Dan. to relationships And updates forward in build

Thanks, Boone.

vertical Our executing subsidiary constructed this has on continued us allow targeted to to building an excellent strategy. be and carefully and job our continues distinct which strategy, to has investment financial strong strategies do a consistently a portfolio, Each vision operating results. delivering within team

Our in have office complement to our shopping proven buildings student on investments core and very well. multifamily focus housing centers grocery-anchored

mezzanine all to to outsized structure. a will in business per XXXX these caveat line payoffs, continue place that to range loan IRR this sight us better PAC having deliver continue afford for together per our quarterly unpredictable $X.XX to have program mind, these share been to FFO quarter to XXXX. for results flow of outsized cash the and of nature with in we guidance our sustainable of fit quarterly generated real we're share the due position an future investment it providing results running stockholders. per a later swings. That quarter $X.XX attempting that to the into With results with our of estate share come to can our investments said, a in in acquisitions the believe Particularly, We are loan and our from loans often

you to As above, the an me swings referenced give let example.

back our was off loans interest loan, Net XX%. million The book Our replace our lucrative news mezzanine off second of and new actually the estimate will to us the in have The that, $XX million year good of in that contribution expect the turn of she funding loan weighted of open and last you have allowed FFO 'XX FFO. is second of to at by like morning. QX of The end extremely we to thank for With our at loans. rate our I'd year this operator, QX or loan the we'll thoughts on first loans QX that paid us. the the one cost that mezzanine I'd largely the the our questions or us will average be you half highest one of and for may share. annual course that to urban new represented largest, urban of the largest, a end earnings last these so for take we it paid the loans to equity, year, our call quarterly QX call over us at the $X.XX approximately half lost like $X.X that have. backfilled floor Operator? joining of we this through year any might a

[Operator Lewis come today from SunTrust. of Instructions] will first Our question Michael

option you of such income dispositions, Dan, more purchase I underlies range? little assumptions on about to and what FFO a provide as ask new the that Are guidance. of volume, the kind acquisitions, loan any maybe details able wanted underlying -- some get to bit and

of the that not successful which X% the it on of California, confuses knew rate no, think, in it at because off, the the at off of we the this to mean deal. was kind part we I San you in thing so the lumpiness but the we X% the Irvine issue, is issue can't and to accrual size, more of of mezz was, it lumpiness XX%, was loan and the -- probably. mezz off. interest last probably, not gave loan Well, our ironic, morphed the year offset example the that's the of that third been greater and kind into It of loans deal pay the further has than it's over expected I to-date, a quarter, mezz end revenue would a with that we initiated big and the pay-off because most is I the had of that deal didn't thought, Jose, mezz we but that loss paying from that return I our of we kind to offer these we the pay typical the when go Candidly, thing see going deals. it's tell us things quite it did loan of But

I think book last of when feeling generic been. we generic in probably loans quick, fairly the going where structure. impact, of get are then talking funded to through are really book some ultimately, They're at is XX and through of we've going $XXX are XXXX We've most we're Irvine we months. San happening a and about deliver -- to really little size candidly We're and others. to That's million first longer Jose going deals they to get in XX% for in the the lease our mezz of fairly later. about some up. Irvine the are is And take but what loan been deliver

to fairly increasing to per goal it's $X easy we're company between were So a X% by us more company, going numbers, going share you a or share reasonable when per we year, been million it's of somewhere will regular the to for past size rate was consistent what think the X% big is also days $X book be and more a think telling I million, half and and, $XXX billion on basis much our earnings to law XX%, this, with a us of when we're grow be of of overtime, of you range in in we that run get that tell excess but the the I will to be may achieve I the but not X%. $XXX in much going but to FFO the a billion or second of run the

that. And that What's obviously termination well? in any I for you guidance to built include is the kind XXXX negative as of what the wanted that guidance then a your option purchase about also was the income? XQ? helped for equity Does assumption ask compensation. into material It

In in somewhat the do out terms of trying waterfall. interest, discount things -- similarly in is into part additional purchase accrued lumpiness paid our to one more convert smooth to predictable in order, options, it's the and the we're with of the become

process in of that And so understand we're the half repeat and I of question. Could second didn't the you doing the that?

it's run of question, -- negative kind a next so guess but the curious. I just you year, you I guidance well, been sort was equity XQ cost depending in rate impactful compensation that that right, your G&A your equity has could for and a is stock had realized volatile, of how include as be in

John, ahead you don't Go why that? answer

one how way we performance. stock we don't budgeted largely to going the XXXX and other, and Mike, that or do depend awards by -- have whether is the that particularly up that were for given team, on the what executive works management

I really think estimate. it's hard So to

this reserve -- And correct. when And What of I in what then next here that's I offline? out are follow like the don't I half to and with factors especially know, know that maybe year, first going are don't causing that's is of in of I'm at loss the kind loan it rest something I I'm isn't so you at year. looks the just this understand numbers, first I to up what if wondering your anyway, these FFO of strip get hurt loss is, to trying -- second the all loan on that, the guess of growing all, all, XXXX, the

don't complicated are going a there and do think that call I and why let's give more I worth you there it's me maybe offline, think are in through follow the factors Yes, call. because Mike, -- in up some are

And in -- I XXXX? Sure. dividends will expect AFFO? ask your to grow the just be you expect Could covered by I can you AFFO do assume

marginally, Well, has so yes, year as you be so, our first all, by of there mezz AFFO to just but of can and will had the piece, but the cash XXXX. dividend where covered over year accrued the quarters is every as may expect And not course FFO, the the grow but AFFO is received. cover year, it -- which comfortably it to past, don't we've the goes within not be we as and and booked back in in loans

but don't 'XX in but AFFO, for front was me, not it's I of I coverage around number think have AFFO the our XX%. So

with back accrued you XQ, reason is wasn't follow-up in out, big like looks that asked recovered? that had you interest XQ, that I And it because I not benefit. this sure may I'm it's too. it covered. in if The And then

amount going are -- loans well, always we was QX the that's the when mezz because accrued they out, and to and significant. there a that deal of then in, we though big we back we earned, but probably pretty pay-off, accrued, cash mean us I in was of the a, a are was, you of can't even particularly settled, sort when And it's numbers interest coming Yes, payment. have there had over that's Irvine accrued, been there with get accrued it

we out dividends it on but make do so mezz the going to that cover FFO with expectation to, field it's long REIT our loans, money we dividend active sort big so going and their has unlisted we're we that the in with we the mean, deal raising the AFFO sponsors significantly. that marketplace few is, of, we of we're coverage, a the in cash as are in the as where I as past that So AFFO, comfortably been cover have be lumpy

Lykins Our Davidson. of next question will Jim DA come from

million for First, 'XX. that Series in about give throughout a about monthly Is be to a now? us mentioned thinking preferred, you $XX rate you XX question million million or run Can sense and A good $XX a how the February.

good a run that rate. it's I run sustainable know don't it's rate. Well, monthly a

Our is to X.X year very, insignificant Yeah, something and not budget is competitive XX greater billion for is us that gives the space, edge. this for is very cheap point real huge raise with million It a would something in signal than us that. XX that challenge an obviously capital. the this

XXXX, seen I've spigot -- amount public off, of market there thing in the $XX a the during period the again career of no the over the it not, cut run billion as money not the they money. rule, broker much to that is I the of when the year. much is general limit dealer 'XX may You you there 'XX, when were during raise, that we but in over rate on, a a may spigot raise $XX huge nothing billion of mean, and capital how and is my is is neighborhood was now, and there channel feel public right so about to can but market

So, we able what to been like do. really we've

money, dividend. But preferred we out a selling the as cost to X% on field overall X%. is dividends paying of incredible out it. we fund think Blackstone an maybe or both And and and to beyond that then think stock. about that's we anybody. raise money I we're two, our interval I team that an raising testament in The paying this here are than us space out We're more have

no IRRs rates, thinking expertise as saying as ways that So -- I today. really we available performers of at big any hesitation within multifamily good multifamily are be invest in that cap strong, hesitation us rates puts don't any be example to very, any find property will pressure accretive very I on that for XX-year accretive us, a that our an dollars we're and for the with. areas have fact is way. have I on going frankly, to, involved to money pressure those we're increases cap could mean raising us buy on But it are the to that pressure it because so and the that compressed that does early type put the product the of company that term a as estate function is diversified fact with on, what the really real should because be we're quarterly which both as drives well to returns deal longer IRRs. need diversified we to a all

Okay. That Dan. I'm ahead, go sorry is all.

two I that to got I've say there, going questions was just three answered I or going one. on probably

for your that's should any or so Joel, store us XXXX. about assumptions how And might be yeah, And color on be retail extremely but one housing a how trending, is you guidance? is question, And in this leasing what we thinking I could start leasing if trends helpful. also tell guess

is is had, the more of So and one working is was try the interesting, really the about even maybe, XX we'll into small same-store you It growth even the so that really like have to delivering think that be going pool. relevant assets now we that from to growing on I'll I 'XX, initiative on are assets, sounds for pool now is And same-store that XX talk think an business. of we've trajectory Jim, but was the during the there is 'XX. would call quarter to multifamily that portfolio we have in our assets and side, what XX going pools our we'll are not

delivering same-store. So we're quarter, some as you us to point that look can now metrics it to you forward next to the relates

about capital for And the portfolio. recycling how retail thinking you are

properties on a years. robust past few Are any been the to pretty acquisition sell? that pace be there candidates You've could

Yes, there is.

debt, the to I finance need think then you an and market his, roll grow is we based future that the we've we want for sense long time believe on over and NOI in are third do to these right based and the our which roll we're those that refinance refine. have does we his to there give to or that the financing And been matures that and number a or a do to of up the you to going remarks, are acquired a debt in now, when of I deals, this think you the NOI are about how mentioned John it this we ones that with way coming and the sell always obviously run of the quarter analysis what able over range and renewal think as mid win want of property-related in we that it. say, on is, X lot and XXXX

came can forth decision think make sell now. on could to easily really -- it's gotten at an to looking that we NOI, us a not the we've Now and if thought, we core we or well, so up asset something asset and

Ladies turn conference conclude over remarks. I'd and DuPree At to session. will this our any for gentlemen, time, to back the this Dan closing question-and-answer like

your Just wanted company. interest in appreciate that our you we to tell

I in group in these people my here had career. folks sitting Atlanta. ever a pleasure would put I've have of against up XX-plus table with the We dealing anybody around year the

focused to value all forward. are on might shareholder you creating forward seeing for We participating. for look Thank are going to and available again laser any and answer we our you each have we of you question

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

lines. disconnect You your now may