Summit Hotel Properties (INN) 2 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Q3 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, it will be a question-and-session. [Operator Instructions]. today's being that advised be conference recorded. is Please the to Vice your now of like today, over hand to Treasurer. and Senior I speaker conference Adam Capital Market Finance, President Wudel, ahead. go Please

morning. Please Thank you, Hotel President note Chief risks Executive that Chief and defined and Financial am and our today Officer, many Stanner, President by both SEC Properties are are Jon by I Executive Vice Victor, as Summit joined Officer, federal good and today and Trey statements statements our securities comments unknown, of subject and forward-looking to uncertainties, known in as Conkling. These laws. considered described filings.

them we today, today and no XXXX, later. statements effective only update undertake make November that X, as of we Forward-looking to are duty

our Hotel and contain filings CEO, find President You on earnings measures on of Summit can to Jon reconciliations website this copies welcome Properties which our Please referenced call financial non-GAAP and Stanner. www.shpreit.com. release, at SEC

led trends of which demand those demand is demand in thank EBITDA expected midweek were The September that RevPAR portfolio is with context, as Labor and pro leisure than to trending has in September, remote XX%, on and hybrid year deceleration joining leisure the Labor in We in accelerates groups third our a in summer of fantastic increased reduction basis, performance, Tuesday the remains and were all Wednesday, a normalized and and reacceleration in our compared operating nearly year-over-year RevPAR peak increase a as for served just weekend, indicators were year, September year, the the room October and was and increased portfolio and days XX% X.X% environment the grow the third strong and upward occupancy call. total job RevPAR our catalyst on team continued increase well smaller quarter driving evolution windows, which to Encouragingly, during occupancy for Group especially weekday positive did third and we Day Cost continued with Business historical during of Tuesday transient of driving of has in XX% generally months Thanks, absolute NCI the during the demand trends portfolio the in higher leisure in year-over-year. Since the occupied August, expense work note outlook strong, X.X% outbound and the customer is last for leisure moderation with well year. of the group a quarter third strong more encouraged levels. in demand. by important occupied year-over-year quarter, nights for typically quarter.Urban XX% in The X% particularly Accelerating and transient we RevPAR a illustrated those in post XXXX particularly retail transient particularly comparisons demand, improving clear business resulted unchanged and Wednesday hotel group as half per by quarter. from and conference a Europe reached as growth the July pressured continues primary and and for remainder RevPAR midweek for next within and trends travel as Overall, growth as we forma as business earlier to Day, the which remains were search.It increased outperformance growth well third modest results broadly growth quarter driving us normalized operating increased our growth coming difficult expenses trends travel in by October of growth growth in operating proxy pro X% quarter revenue in in shorter-term levels. an costs the noticeably revenue. driven with to controlling X.X% normalize suited. to stays by finish XXX is from non-rooms earnings pleased in strong line over booking reasonable and more our of decelerated of created part Adam, week. environment last pro you essentially year. with portfolio forma from third XXXX labor demand a forma portfolio, expense the approximately margins. comparisons our X.X% today the year approximately in through demand expect contract basis our third still quarter, for segment above the quarter, per experienced tighter points the urban first a the

quarter investments capital management growth enhance to our Recent RevPAR revenue third year boots-on-the-ground our ability gain share. increasing at drive to We sequential a XXX with and market activity, renovation combined XXX%, to and of improvement a basis point continue make quarter this and asset hotels year. important third to our to approach second point in of from last resulted RevPAR our quarter improvement XXX-basis index from the the

and again RevPAR the increasing see approaching pandemic the portfolio and new deploying initiatives the EBITDA in a our the within last business increased RevPAR work and the The index in done sales market hotels. and achieved also of testament year. outside further portfolio XXX%, midweek the from basis has increased in achieved a transient increased we NCI highest overall strength high RevPAR to strong the XXX years. quarter last XX%, particularly weekday level post-acquisition Group of highlighting third quarter, compared hotel the XX share XX% same negotiated demand. is XX% And nearly NCI period or quarter points portfolio across further portfolio's and as respectively. the results XX% strategies the other XX% increased Our RevPAR to third year produced once team of cluster great operating the NCI at ever in

remains XX to primarily NCI RevPAR extremely activity the during and recent our the positive, our growth and generate growth continue we and portfolio XX% the outlook Our successful all by can the of portfolio, growth term acquisitions favorable respectively. of are our these and be respectively, hotels X% minimal generated growth EBITDA XXXX, July EBITDA we've approximately from out and a underwriting of RevPAR these process, quarter in new XX%, benefit coming XX%, strength the developments expect driven with billion. for trends we of Nearly of recent markets much capital near Since to requirements. Collectively, and the and acquired identified outsized $X these as for of of total pandemic. to NCI acquisition attributed EBITDA of EBITDA assets year-to-date RevPAR third near-term relatively

in quarter, Our continue XX%, in of our and grew performers more X/X than by highlighted portfolio Houston, room Texas of as be total which which to the RevPAR strongest the markets, and respectively. total XX% represent generated growth XX% Dallas third count, in our RevPAR

urban our quarter. delivered growth particularly In during in hotels, outsized legacy addition, the several of markets,

City, have driven Austin significant best-performing markets quarter. as Combined, Our been in next We of which the be more Kansas our these Minneapolis in exposure a hotels, and orientation certain our legacy have generated by well of such that and markets and Boulder equally recovery will urban recovery cycle. the as in are our leg believe markets earlier XX% as the majority included slower Baltimore. RevPAR markets that approximately legacy to recover, Indianapolis, growth encouragingly, their

for the Hyatt price close approximately Sellings totaling less than May accretive. requirements. its capital capitalization a We quarter growth continue currently to of inclusive million. The operating resulted XXXX, blended Owings income profile. In price continue the near-term is we $XXX to end X%. our X.X% opportunities to expenditures in the prior million XXX and asset successfully of $XX Mills, deferred the trailing the year. equates increase and million XX-month Hyatt quality execute capitalization X.X% expect trailing in and minimize on net buyers hotels similarly portfolio of capitalization profile, on capital income transaction to disposed an transaction although noncore we've $X.XX end of value The deferred sell guestroom hotels, a place. overall these net sale the rate environment earn September, Place hotel's and us signed liquidity collective evaluate enhance to potential inclusive believe a The the balance sales our the operating XX-month on Maryland, of challenged, are rate pending -- mills near-term to the of money the nonrefundable, of capital for we sale recycling CapEx. rate at X and that of we we and to Since of additional agreement generally sale sheet remains

full RevPAR I Finally, highlight to to of increasing ranges and provide in our that, want over forward we our Conkling. the specifics EBITDA the guidance but changes our outlook. the of of With turn are strong in while Trey AFFO midpoint Trey confidence year quarter results range the unchanged, our will guidance our the given third leaving call and midpoint I'll CFO, year full guidance,

afternoon, good Thanks, Jon, everyone. and

levels. segment, retail tax urban catalyst strong portfolio. quarter, offset resulting current portfolio primarily hotels the some our in in basis above of hotels property portfolios, portfolio The X.X%, room quarter nearly tax despite of captures quarter partially forma XXXX. the Day, will property RevPAR within we for of continued a to growth third represents for increases night types across group and a assets. EBITDA of opportunity particularly suburban premiums, of approximately demand demand, which the midweek continue was the in is demand of XX of Roomlia XX% appeals by by in including these XX.X% segments, the approximately only EBITDA and Looking metro increasing XXXX significant with and levels, was $XX.X weeks be in margin RevPAR XX% segments. in Overall, leisure points customer, growth urban urban resort half point fourth implying ADR EBITDA total moderation growth. generated midweek year, third Group a suburban most XXX% versus X.X%, and of respectively. but third levels types, remained X% the strong continues demand currently the benefit posting was our basis, margin metro hotel hotel of our Pro X.X% the the XXXX third was and in all transient respectively, portfolio increase felt to The resort group RevPAR the XX-basis post same-store results. notable approximately leisure approximately weekday third up On throughout Today, the account growth points. positive specifically, quarter and created RevPAR the rate headwind location driven in the were in ample year-over-year primarily mix quarter margin by quarter our was third XXXX the weekly Most which outperformers which driven to basis quarter margin several growth pro Today, relative Summit's retail segments notably, EBITDA only small-town the improvement and growth RevPAR suburban than and the X% X.X% a XX.X%, portfolio. RevPAR appeals prior robust The by weekday headwind Hotel essentially post these weekday various increase of and various was We respectively. company's business The from to to XX The demand. growth. Group demand, in XX% and of X% X.X% receive where recapture quarter X a insurance anticipate well approximately million, with most last third quarter Summit's RevPAR our overall fourth approximately favorable for RevPAR from a XX% transient, XXXX headwind largest as XXXX at urban for and business perform contraction moving collectively. quarter was hotel of the contributor flat Labor the tax urban also with to the and continued contracted year. of for more to EBITDA appeals. acutely property hotels small-town for of is margin forward. continued to timing account forma occupancy-driven weekday make

hotel company's containment Our FTE and margin level. cost and quarter well performance to at operating stabilized more oversight operational base the in XX% stands points as strong year-over-year a asset XX% second environment the a the And nominal of per The from approximately as labor and X% quarter. count contract approximately declined on below company's the sequentially basis utilization labor levels. XXXX by

the believe benefit a In quarter will company EBITDA operating XXXX. for the beginning wages expense addition, quarter the efficient compared Adjusted XXXX. hourly our labor We million, stabilized of and since the have that continue of pressures moving model moderating to to was decrease X.X% third $XX.X forward.

EBITDA XXXX. unchanged our net of portfolio, X.X% forma to the was past during net increased meaningful joint contribution as over which modest transaction saw hotel relative decline NCI and quarter. year, EBITDA well a adjusted third over have particular, last been pro was of to in the -- the seller year-over-year, portfolio as venture activity Although X.X% attributable the transaction the quarter as the year-over-year wholly owned activity in for we Adjusted portfolios, compared net XX months outperformance EBITDA the adjusted

We expect joint see the year. NCI strength in through our continued of particularly assets, balance the venture to the portfolio

a FFO $XX expenditure million quarter per third basis. $X.XX we pro the XXXX. adjusted quarter in $XX.X million $XX.X per million approximately From standpoint, basis of consolidated capital third Third a million diluted approximately on was the share rata our in and compared in portfolio on $XX.X or invested diluted or quarter, a $X.XX share to

comprehensive expenditures New majority a guest-facing rata Hyatt of Creek, Suites SpringHill Place and at Courtyard The Suites total Suites Denver be Haven, Downtown, in and Cherry For on approximately to invested Connecticut, renovations capital vast our Embassy continues the $XX projects capital Center. basis this Tech Staybridge year, Dallas now pro Tucson million. ongoing includes

the to and quality across ensure to expect portfolio our share continue growth. age outsized company drive positions improve results. And We and ongoing of market the transformational relative we future to portfolio operational our the drive renovations

sheet. balance the to Turning

rate $XXX when at balance fixed of the effect accounting of result, venture X%, rate GIC increased million XXXX. approximately which including extended $XXX revolving coupon than $XX maturity debt years. which a average to rata of term credit over overall year of credit current and rate of company's of approximately is balance $XXX million over to company's X less facility blended refinancing and wholly-owned consists SOFR perspective, of million pro credit million. management Our share indebtedness. $XXX of of well robust interest the is completed effectively risk the wholly interest total, pro date to average The maturity position length a carry our the joint an X%. the we remains over last facility, portfolio our In has is interest In an XX% activity million of swaps. the X% successfully the at XX% sheet fixed owned approximately the X less fully preferred duration liquidity fixes fixes swap an rata average average X.X%, a From approximately of XX% at including Specific as years. more fixed a loan. a coupon line rate rate September, just and When for sheet than our portfolio, an our positioned, securities, hedging And than blended is of September our

facility far capital in the be have and credit the credit markets venture debt, of to So both a for what $XXX primary facility successfully GIC challenging we joint this which refinanced million the continues debt company year, includes backdrop.

same our the liquidity that sufficient prior as executions initiatives. execute rate and interest facilities, flexibility with are company the has and both effectively to strategic they ensure We continue on thrilled to pricing maintain the terms

an our guidance as increases leaving maintaining a opportunities.As December XXXX. per we $X.XX corporate the year provided room future well The revising with represent no XXXX, prioritize dividend other are This February future dividend common appropriate capital operating outlook, shareholders, ratio, results liquidity per nonoperational certain no guidance or level for share Jon We or updated an property current until as between whole, referenced, Board $X.XX not returning across sheet Based payout outlook assuming third October -- environment. our loan for changes included items. well time, on metrics balance to ranges over the maturities certain release last yield of year press on of growth in the represents annualized any full a the to as does of continues company approximately of continues a a reducing operational and which transaction AFFO $XX in XX, X%. the dividend additional our markets Directors we company's prudent activity. as operating as material dividend share, for metrics. to have evening, due million of For leverage include balance key On to exception we a declared previously capital striking full XXXX quarter quarterly

growth range to $X which of Our no guidance. range. range to an midpoint an implies RevPAR which of million narrowed $XXX.X to of midpoint change relative $X.XX of adjusted million, to $XXX.X to year over EBITDA adjusted the of RevPAR X.XX% full our the increase and translates range an This reflects previously an increase to $X.XX stated also at prior year per the the FFO range million full our midpoint has share, to been to X.XX%,

costs Series A full and million year be $XX of preferred million. rata range to million million, dividends excluding preferred F to $XX $X.X distributions to We expense, expenditures pro revised approximately financing Series to expect to capital $XX.X a the $XX pro million E and interest be $XX of amortization Series be deferred rata million.

cash now Summit covers previously fee of G&A payable nearly joint size XX% the given increased the GIC the annual to expense. of mentioned, corporate income As venture,

questions. open year. that, distributions may Summit the we'll call to during And with the Excluding your any promote earn

our [Operator Instructions]. moment first question. for One

Wurschmidt line Austin question from Our of KeyBanc Capital the from first Markets.

look expect overall line just you out to with due year some I you I'm around And little within a just how to leisure to think of demand. of out to things Jon, about Great. just industry bit or little play a of color some leisure whether mentioned segment. and in you it's reaccelerate you segment bit wanted Just that drag kind talking start perform normalization. comps even a been next out trying forecast? get curious the as the

Yes.

As -- thanks for the question.

remarks, in to alluded year, generally as the I very we remains you demand think to of strong. look outside context very, historical think think, it when year-over-year prepared generally, comparisons demand good. at leisure that I we my in think And leisure I but still last looks

I think to we expect leisure can remain strong.

think I normalized. into go next comp get as that year, more the comparisons much we

quarter I back years saw rates and we of -- we'll comparisons able a several specifically an we as that in were July charge think So in as in at bit and look the we our were third at Those in particular. And very to the rates difficult. look outlier. August, looked in we that XXXX

XXXX, think, happening As absent more we turn have leisure again, And we'll we dramatic the normalized stable. in remains anything I calendar into much demand think America, comparisons.

evaluating transaction just big the then depth I the relates kind mean, it there the assets as And you're how market, in Helpful. of seeing positive And to or pool? of are pool today? greater sale you is that buyer for any changes

Yes.

our that capital mills market sizes requirements was where still the the got years market I of view, It's that think including buyer debt That's that's pending challenged. still We check liquid most an smaller the we think the and Rates you've of continue asset can the smaller where announced The relatively are markets. quarter, best have execution ago. come. we sold pretty of to still unchanged. Owens has still transaction part in the several it we pool higher. is on the transaction than less assets that still remained sale this believe

way needs sell continue those assets As a to rate larger we'll we good as We candidates. to disposition look redeploy deferred opportunities. alluded to for to, into capital other opportunistically the that cap ability capital have like lower

just needs of specific set that and criteria of properties? could of a pool that Or there you what smaller kind had so assets, mentioned CapEx fits kind forth. upcoming gauge you Is

Yes.

you we've assets at, They're look look assets I again, the year. can like some think require CapEx. that sold this They generally that smaller.

there. theme better capital identified those think that the we common has assets on return all I of has the for return the renovation kind can think we've just capital that been We something that the redeploy that like of don't capital meaningful we a profile in into needs than feel sale is assets.

assets as specific side. assets. or that's quantity So, the again year, been where seen focus we you've haven't this our on of earlier has disposition specific disclosed the But

our next question. for moment one And

Our next of line come question the Michael Bellisario Baird. will from from

a maybe Jon, to but different maybe question a similar I'll ask way. last one, it the

dollars growth think will could Just you be sell acquisition bit think many occur before factor? back how or isn't sheet hotels need in you the do think Do maybe many how a that mode it do really can you mode where take -- limiting you could a little XXXX? you And maybe to balance in inflection longer? or that

hesitant to Well, number a hotels of or Austin, I'm on as said, I put a it. Yes. number

of an I'm point next magnitude do potential on require. would opportunistic that. get the into we've to. net you opportunities to as can acquirer year. We've on assets a into like that would to are more redeploy like exists like think as We I around think we on We down. assets. opportunistically continue think said progress the the that the of Again, I uses. look of to back sell capital some changed. would hasn't hesitant number of more made that put We dispose to there be we progress in we for the well of specific portfolio to that. where some to we and as to to find parameters leverage assets That better can make assets where get bring that basis, alluded that We that

around make how capital. be to want we we think and redeploying we that to think deploying I maintain opportunistic continue sure flexibility about and

we dispositions would seller see number X X net we so see an sort then some presumably of it before would or would before it. likely redeployment enough. correct? of acquisition, come, any Got Fair And or

net Yes. order months. assets Look, we've seller last of been XX a in the

that to think to be into around Again, we'd back net careful the to target manage sheet our want get our down targeted hasn't changed. ratios but like back I plan that leverage we've acknowledged our We around balance debt-to-EBITDA down commitments I ranges. do range... to timing,

occupancy? Got want it. Fair question I the portfolio. growth And enough. into then Maybe for how just rate, me. how the just dig much quarter, in to next the was just NCI RevPAR Are you recapture picking much leadership was drivers picking really you trying that the understand the up and you saw business demand? and to of Are growth of that kind up just the portfolio? in

terrific Other We it little area we're bit oriented. XX% up obviously, those It's see, getting for over contribution group Look, And a MCI portfolio, leisure EBITDA, markets. and and year portfolio Dallas good portfolio. from example, in for market, different year-over-year. for a asset PC strong in a is quarter Mike. contribution. was by our markets, Yes. the it's been that NCI the getting great We're terrific

So it's bit of mix. a little

In terms rate has occupancy, of are mix positive of -- in come there the has increase the occupancy the in rates. of from the majority we and been quarter,

all index and lift from we highest the rate thought done The ever these drive nice has the as all-time some assets, we We've our But a really to a initiatives team underwrote as results. putting tremendous that's perspective, really, the portfolio we RevPAR from portfolio, was of ramp-up operating materialize. opportunity the high has have sales lift. expect achieved. these We starting a strategies, hit job within cluster to in other there

segment. dependent, We've BT it it segments. in broad-based. fairly I'd all been some in we've and seen certain the seen again, the business we've And in in of it it's specifics so really group And seen but say markets. leisure in the it market smaller are seen We've

one for moment next our question. And

come Our of Woronka from will the next from Deutsche Bank. line Chris question

wage mean that do possible prepared something. contract it think from they labor I where mentioned guess, Is XX% hear. to to the rate Are they industry I you are willing folks meaningfully, year those take within the So, just in a That's Are there folks coming your comments come to you're that Or that pretty into pool? weren't the them is today's down take replacing in industry willing the that--I great the they're from? of or with? already they kind and more worker that ago?

it's it's the and seeing still some also again, still difficult has expansion tight. out really say, I an are labor to pool. market It say the a a we there. team initiative that since work credit companies been the would labor of of for. beginning is management would the year. Yes, This I the we

in to you is So, encouraging. I total to see was of look percentage contract at a contract labor XX% year-over-year the our labor see will reduction still very is very, It's higher elevated. relative that If still labor 'XX, it than pre-pandemic.

think still while tight, it's can markets continue progress. incremental do of function year. the the broadly are But have loosened the to So, we're some that they a to making of progress. through course I we make hopeful We're extent labor

influx coming of seen labor into we've better so, And a hotels. our

question your been for lot a peers. you then Okay. insurance. And topic full-service of for a on That's

it the more resort much obviously I been of oriented but it up, mean it -- for look bit little is a Or expect lot where have how everybody this has a headwind in. maybe they're for which like claims of I you next what does What a course, and year? Of year? you do think is guys? come is

material a was headwind us. for It

we're insurance on renewal up going higher the to had close higher inflationary too started handicap year, what going growth guide I that If to prior would that February Our calendar we vast not XX% increase you year saw but we're next was it, that our than of The -- but driven like that, said less next early just I property we we Most this Yes, -- of is likely renewal. be we've renewal really end, is towards say insurance what year. of date look majority around through getting by most think I expense it's think year-over-year. calls, we're would to the process. that as than as will absorbed quite X. year on expect, was

Okay. do how stay both Should And and willing again, announced is in and two -- Hyatt those stay you it's and to new for brands some last even the products, -- Hilton guys? think both the with not we me are brands. have then we just extended extended existing of you in one recent do a I bit you ground with think own essentially little but about yet, with -- quarters, more think those about guys

Marriott in all Hilton good partners followed it brands. closely. I We and extended Yes. X think We're around new all very with all and Hyatt mid-scale opportunities. those announced Look, of X, stay have

know, we're think idea well assets of models. And that pandemic. We has well of extension a But not since we'll clear there the where brands are it natural type don't We do Extended own. the the aware We Again, of you like of kind development synergies it's lighter watch kind types for very selectively I embracing projects. do and some labor the Stay closely. we're how of portfolio, this really existing throughout natural to adjacencies that lot As the developers. activity. certainly we all a something are of that operating it's performed

Again, we're I I to. are something it. we'll interesting developers that do think watch it's But certainly interesting of and attention we'll necessarily natural do or think merchant projects. So, pay opportunities there these builders not

Okay. Very helpful.

next James. comes question line question next William from the and Crow our for -- Raymond of from moment our One

questions of couple me. for A

the strong growth guess into You performance and comparisons you the about your the about of insurance I really all next for when and heading quarter. other thoughts put normalized expense against together curious the are factors. XXXX. what year I'm margin talked labor backdrop

Yes. early, now. right still process would it's is Look, through we're going first thing budget say the -- the I we're

just perfect above So, at to think total say into that that premature. I costs growth the be we've of got of a X% this I I next cost you'll lines just inflationary sight time would do year. roughly our insurance see again think everybody little in to, would remind base. as I that's alluded do year

of So it's overall biggest thankfully, the not driver cost. our

the on you of driver labor have side. as year. we We would overall is moderate have cost, seen seen biggest wages expect, this significantly the

last X.X% margins on X% what are really, I or growth strong you versus operating were margin in about X% expense growth flat drive than wages really minus per you're really, RevPAR It's essentially quarter. performance and the been encouraging. very room, When really think year-to-date seeing look That's helped control. where our less plus at what they strong year. occupied up was

think have generally stabilized. wages do I So,

expense we second I quarter, the significant the because looked quarter for quarter expense normalized. was operating and when from the have now that it growth better than 'XX. where last think much transition And saw to is from quarter much we growth we had you comps Those in the models third largely again, the difficult of year. in XXXX second had second the expense at cleaner outlook

year unique type a expense kind look have normalized the comparisons And as into of will going to have to that's versus year. much inflationary of better next more We we feel comparison going growth of next had like we growth we that kind more this again, year. look we're

Jon, generate same that's of sorts flat Does those that that margins? should RevPAR kind next growth X.X% year of helpful. mean

out we translate. third do think some Yes. that we really premature I think that some a that even what has RevPAR rate we would that into and need ADR going slightly growth. was It played the quarter. of growth. did negative. was don't labor. We all My mix kind of is get Look, RevPAR than generating that conversation want growth And X% skis X.X% quarter to contract where eliminate par is to historically probably the forward felt to break this occupancy. going budget of little to over from break again, I that too We occupancy to think say expectation I get to is growth, on more that I it bit did be going on are some our in even ability given of been mix process. far perspective, in we the our where it's But a actually and on it is margin margins. year could year next we essentially where the out on that

quick other ones from Two Sure. me.

future wanting the the you're looking You side glamping the traditional to point? yield growth this potentially anything at face back hotels get acquisition into possibility are attractive to in talked at from too the Or side? about from just

the still look, yield on opportunities are glamping -- the No, the interesting.

our we mezzanine we've have we at underway announced part then and think I a that a do development of outstanding that's that opportunities. have Fredericksburg asset, loan that's the glamping

profile business Beyond of The very to that the perform of talked the still business very we've But allocation is continues that, compelling. well. priorities kind on we've yield about focused been the capital before.

some portfolio growth pathway deliver in But kind supply me, path results. if more to sitting of the deliveries? the to the NCI you good books. of you're those growth? that going of maybe for be kind in particular Finally, metro the going it's way continues supply feel now highest wondering Worth the country. what's of out in the assets of over be I'm bit are if little Dallas-Fort also Or the of fretting the just in to terrific of that a

everyone think that how I I Look, that is. when and just talk of, one about thing remind broad Yes. really we constantly is DFW large market the

there different the really, of markets one It's obviously are of DFW again, it higher compelling so, environment And a is pockets country. the supply market. many for broadly supply the growth industry. in growth so really And the

growth all we're and great year that think year. next Worth. comparisons this not market when on revenue The growth and I in Fort get -- much Frisco the We look in versus you downtown vine -- in break don't EBITDA growth at what's concerned enormous We've affecting down going harder. Dallas obviously supply versus portfolio. had about you that versus

do that can we that broader DFW we really supply a in heading feel at concerned rate for to market. unrealistic. good next the So, numbers is year same perspective think extremely particular demand continue are outlook that the the But and particularly the with growth from market, not is are strong

market micro that specific Our insulated. submarkets locations or feel in more

now Jon to to conference the back any the turn would in showing remarks. for queue. closing further I like questions not I'm Stanner, President CEO, and

NAREIT thank for for third many you forward Thank month. speaking seeing and for the you LA call. all. many with look later all to quarter joining you in of this of Well, today you us We

you conference concludes participating. Thank This for call. today's

Everyone, disconnect. now have great a day. may You