Front Yard Residential (RESI) 7 Nov 182018 Q3 Earnings call transcript

Good day, ladies and gentlemen. And welcome to the Front Yard Residential Corporation Third Quarter 2018 Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

conference recorded. this reminder, a is being As I'd conference, of Robin to introduce Front for today's your host Lowe, Residential now Corporation. like Yard Chief Financial Officer Sir, may you begin.

for Good Lowe Robin I is am Officer and Ermani this name Financial and morning, Chief Front you, today. My [ph]. thank Thank you of joining the incredibly us is Corporation. everyone Yard Residential

log available remind on to at I’d begin, a that we the site you slides our like access to to please our Web www.frontyardresidential.com. accompany presentation Before remarks. To is slide

You’re provide talking may these about healthcare owrkers additional find j slides investors information that useful.

on reference Safe terminology the may results materially to contain Harbor to a indicated may statements. laws. certain the could involve of or and the X, risks use of statements in that differ actual to securities future federal pursuant As our provisions period discussed cause These forward-looking Slide by forward-looking by identified presentation company's forward-looking results statements that may the the forward-looking from be uncertainties

For cause XX, Commission, our refer XXXX such filed Securities release and filings Exchange an the that well statement year-end disclosure our XX-Q as Form a that XX-K, our our as we in today. with may factors the Form risk and please the XX-Q to and difference, XXXX Company's quarter of Form quarter including December the elaboration first earnings second third

other materials button. our please would you e-mail, Web news alerts the like releases, If via using e-mail to and receive on filings page site the SEC register Investors of our

the Residential. George Front call I turn Ellison, now for Chief is Executive Yard Joining George. me over to of today's will presentation Officer

will a Residential. is most customers on morning, keep interest is talk The integration of making important Today’s funding Front quarter good undertook we is HavenBrook progress a about to quite and good Rob at ahead productive schedule are operating as And of risk. [indiscernible] very a the Robin. of platform bit on results movement such reducing and internal we transformational rate gaining our everyone. well we update the where It's extremely the acquisition. continued momentum. although the noisy, going been Thanks, overall Yard front

We also with once for see been remaining has deployed. cash performance been property our management Yard we to Front Residential's share homes internalized how you and want has

homes up X,XXX around fixed per X,XXX of homes Turnover Over rentals share. the acquisition slide data X.X% were as now brings and XX quarter. stabilized our five We’ve in portfolio and over If property reporting you see a homes, increased rental quarter you results homes. revenue shows strong of XXX lower is in sold quarter. for for third solid noisiest the Rental XX% the which was end. at mind, XX,XXX stabilized Keep at third quarter this up we will to charges quarter noncore, turn please significantly managed. carrying portfolio or in the were of our versus funding the margin, of XX%. fourth internal homes up overlapped are stabilized to we XX% came external maturity The of were internally the Page XX% sale operations, average in Stabilized three FFO year. the those portfolio can are right was year. X, one next the last $X.XX of at rent core of years. we QX in released be capped Core should will effect while continue are a reduced the was for of quarter. into This Blended managers. NOI as quarter and in numbers decrease. And weighted us the the increases at rental of be which they identified ramp X.X%.

Page to some last turn important company five please X, over you data quarters. we show the If

We trends continues here. be to strong

to homes REOs falling of are rental and of continues are our away. Turnover X.X% low, non-core is higher at portfolio target. X.X% while our very holding to blended run end steady Our the growing rent increases

turn update on with that acquisition. X, an the Page begin you you property If see internalization to HavenBrook management our

complete, will critical. to one schedule our Once platform MSR Our Miles to progress. this originally X,XXX moving was by be transition team -- November of a for are soon. operations the priority. homes Miles to XXXX, Dave well. stated the these This that platform I’m portfolio move his our year-end. we from to ahead finished move pleased the ASPS to goal as handle end homes clock on by homes this their these of have is move X,XXX our We year-end We diligently tremendous roughly by we accomplish on thank work is plan number platform focus and but start families Keeping strong sooner. on we Adams to announce to is this should or of and onto round

HavenBrook And far new will challenge. to so turn teammates risen to Robe. have back this it I our

George. you, Thank

the quarter margin exit of integration nonrecurring $XX.X fees include homes and fee the quarter the expenses and This and of from higher initial higher impacted payable than due property XX.X% external of for away G&A quarter's HavenBrook the for acquisition property respectively. and $X.XX, of platform. the financial impact our to transition GAAP management. core quarter operating operating the million, last acquisition were and including on-boarded we also as $XX.X and the was million one-time Core at FFO costs to HavenBrook million, results loss and $XX ASPS NOI manager,

but third-party is the HavenBrook homes to the was as expense $X.XX add homes negative would This we managers, and the it news a of forward flat and a scheduled than quarter larger property of to at have been its managing of in NOI The that approximately $X.XX. transfer for has is property resources Excluding range last need this been that HavenBrook base number have acquisition. core going less transaction quarter. margin estimate would FFO impact we to manager we good transfers, from and property impact

operate as we hire Clearly, will costs HavenBrook quarter in additional be properties XXXX. away that By very created of target creates to will results is ASPS. are resources transfer slide is we believe resources expect we enable before to platform the complete previously end until and that set We areas managers platform scalable internal the internal have present. management be not from fourth fourth also properties the month, to continue properties on was place as duplication We by that managing transferred for can this the pay quarter all in impacted ready. of where the boarding on be numbers once property internal transition we of have our to to will us reach properties the encouraging. out complete, a Initial X expect this external posted

the demand seen and October. already rate on HavenBrook about the occupancy was end transferred our platform have X,XXX of strong the We leasing homes including XX% at

to sets on We XXXX made expect We’ve strong start position. very a balance this to trend in up and sheet. progress strengthening continue also our good

year a on part XXX of was costs we do of funded line at down X.XX% fit resulted of homes a last Mac and as warehouse from loan Credit executed existing $XXX.X mostly profile. long-term HavenBrook HavenBrook line This homes expect our XX warehouse million million funded interest The homes not lines. the collateral fixed net approximately bringing is to X,XXXXX in a As XX.X%. The more weighted HavenBrook expensive rate X.XX%. portfolio non-amortizing X,XXX loan were we average on this from with sell quarter. advance our reduction from warehouse $XX homes Freddie of transaction, to that X.XX% these transaction quarter Suisse of rate debt

should George. XXXX, rate November X.X%, home of home loan of is XX% on agreements I approximately expected meaning years. call the the fixed we for XXXX. have turn an the summary, rate LIBOR credit should with narrow, now option on refinance occur. and spread to at us back that a extremely well, on these and the or Additionally, we SFRX now this these capped further in XX, SFRX October loans average will to XXXX, believe capped loans loans maximum weighted our X.X%, rises rate the duration of We the over maturity positions be X.X In will debt

of it assumes and X fourth Thanks, quarter of see once how Page illustrates internalized homes goal XX,XXX the need investment we performance company property the our management the Rob. we been for of has by homes XXXX. our

with such the fees would will also the we Let through Revenue rent additional give and revenue point the me property with XX,XXX shared X% to assumes of us internalization components. in XX% out occupancy range XX% X% approximately streams, which previously late that annual I external walk the management managers. to growth. as you to homes, access growth different

annual by external for $XXX management side, lower million paying what as million $XXX vendors. by to in between routine additional There targeting translates are between and we mentioned, $XXX fixed. with of between third-party $XX and a to FFO On These next $X.XX with income the maintenance when that not core will million between to run operating now targeted staff FFO NOI million. around self annualized of account revenues the a savings talking pay into the end We engage core $X.XX a of we are net markup savings million interest we're very Rob XX%, $X.XX the which million we direct property expense and of degree rates expenses, are AFFO we range expense million. G&A, our $X.XX quarterly margin will and which by performing internal managers. be annualized into Taking be basis, share. and $XX expect expect large jobs Along than and On per our and $XX AFFO year. get we $XX annualized

that our early going of the to all you’re variables to that the are appreciate targets, transitioning of going lot fact platform. homes the to building when especially a As given these stage

confidence we the model. our of business it first stated wanted the page Yard to rental we [Indiscernible] that’s that track on positive record do the for reaching housing because in Everything on pronounced even class year, show of our this housing, back our affordable single-family X strategy of Residential. Front again. goals a it more at this so but heart tailwind the macro for the business, is will excellent give quarter working Slide should However, underscores continuing again

so Home properties to Workforce predicted, being also of we housing plummeting, and no pace. early growth case affordable are inflation well. the all, continue that household with is that of fact our building still important families rise, fact And positive formation these forward platform. stronger, We as was solid solid backdrop And ASPS worse There's there volatile to although continues remains finally rates alternative, that We to important residents The is to from continues, comes are rent in or Yard was we a the the unemployment progress supply keeping future home makes is the price is will continue this at page, families are indicators that by demand. an in continues. model. proud is credit As in most growth quarter. growth increasing not growth are affordable the the Yard these all perform is rates mortgage out can up, up This financially favor. short Housing meeting the is housing how is homes the macro The wage call business starts, going household All provide Combining made about very is rental formation number the quarter-over-quarter target of clearly internal growth rate are rise, interest And encouraging. as little U.S in and not facts down And becoming previous grow. live continues of financials transitioning a built. on home. appreciation it the where optimistic and why our Front strong reach. a made of to rise. who alarmingly our Front in. our tremendous trends The you this Residential. supply. these for homes but to year-over-year. see And

be is to variability certain we as operating large acquisition. Some digest expected in metrics this

and the the end covering We further by year-end XXXX. impact year. improvement in gone the of NOI in target but FFO the expect this a with XXXX will and by should significant ultimate be QX, noise of dividend of continued story mostly be

we back and We to record our reaching and have as are I goals track a proven operator stated of we hit well. please. new goals diligently to now open-up the questions, working publicly can turn will for these it

comes Credit question Suisse. Harter first Our Instructions] from [Operator with you. Thank Douglas

open. now is Your line

Thanks.

of little you a sort duplicative how about size of detail that of start costs think kind to running achieve to lay kind help internalization and you NOI [indiscernible]? start that runoff of kind those more bit see three can Just Anyway when of on around of us and will kind we benefits the kind to of the the margin of of XX% kind platforms. that the

Thanks, Yes. Dough.

So that similar cents NOI my hadn't [indiscernible] said transaction, down. I the quarter. in $X.XX would is have to last I excluding been remarks, been this it's couple FFO have would prepared the as costs a of duplicative very those think And of been up instead quarter

XX,XXX managed I into my to fourth gives the of you homes up its to that So like. other have as have explain noise property up think continue said property ramp manager ready before quantum will by be our to the I away resources transfer we continue in sense -- those the actually The you properties. a resources as same at the if we take remarks, the time quarter ramp we we can manager. second to But the

So be quickly basing a as fourth early That’s are and the we we our should to we the be by we how would be get certainly noisy. properties but to is we that can the quarter done, transfer for into possible. as quarter, year, as first new get shooting if that’s should plan midyear, definitely

there then you ability getting homes, today? just that you kind And get XX,XXX to the require Rob. like about Thanks, Great. liquidity thinking capital of or to have additional do feel does

definitely liquidity the Yes, there to get today. have we

So a to mentioned the plus XXX earlier. left homes recycling assets, that selling of was legacy combination George the

are our so homes almost than X one for those XXX, of cases. sort in average thing points it's suitable one Some much to price the higher the of for many price share most X thing of X.X,

that that’s the homes, slightly acquisition. XX,XXX achievable. existing there's with think may I shoot We have actually So very to

Thanks.

Thanks, Doug.

Thank you.

from comes question with JPMorgan. next Our Paolone Anthony

line Your is now open.

first integration things and changing like to morning. of My need you Anything Thank or question price is all management the with adjust bringing you just different as strategy on like that in-house. platforms these together? of relates terms and good property to and setting anything operation effectively in three to occupancy or that, it coming

we the about mean, know, we're lot fact doing now, before a customer, families, the in how end we I as wanted you those to in last and call, No. it at because customer of outsourced so service. day going -- that it closer decisions so the as basic had this the we talked to be is closer driven the of to to the be by do well we

homes. what And so mean them, our and to speaking those anybody folks you families to voice them and in homes, about between as when don't goes -- we can want in can grow be don't those control that they responding you to us we between you want and anybody the the

is at is fair is going the happy guy families win. guy this I So does the best service get The a keeping win will a to to for the these of he who who in price. the That component customer financials is going second. this

So side the human, that’s of the customer it.

families, that folks with us a they we out And our was a We very them, to and HavenBrook, we like so have touch found we between families everything the the wanted of something process, have folks high they that as we a at saw. getting great do. team dialogue liked

-- will to as really So we into of so some use they’ve will process, that our and grow they've what their so learned. that. it we with they things that's -- ours and obviously said and the great and going a -- drive we're want platform, it what But -- pull

we there's as comments stated financials, to do right to to margin. costs, obviously make I the when lot wanted my into process hands is because in to into reaching the line. it bottom get I there of when ways a So cut less the their drop Again,

next process effectively as will gone whatever it into MSR our an So, anticipate it. so soon so, doing there. we we do our a the with way the ASPS and process. to from week. people is some don't our wrong obviously that no, HavenBrook's we month hire will I’m work and use, of change, on But they If that exit of process because again I out into want guys way with things more -- and -- figure that with those we And be we'll to pull ton

And of that is on give then current Thanks. what yield is that versus sale redeploying Okay. a yield like the the the for on what like you capital held dilutive, sense as maybe bucket properties, assets to accretive, can looks [indiscernible]? on us

homes Tony, be are two, high, particularly about that’s the one. in point, so guess, the They’re bought [indiscernible] price the where so. than we I should good. it that mostly wasn’t accretive, price that or South that our yield HavenBrook little of Florida is higher some XXX the Yes, a from And wasn’t following yield

out [indiscernible] should and point, improve to swapping by that for yield price accretive So at the we this believe can be we these so there yield. our properties

about Okay. the you contemplating side, talk refinancing that’s MSR loan And then can I were on November? think in you now think the open of up, just financing I

opportunity Yes, same Xth refinance to can November we that the refi day as go every it we on forward. our is and month first

at looking yes. we're very that, So carefully

on Okay. G&A. just the then last question And

piece You number there. guys outlined overhead, That comp is the fair? of the excludes that non-cash

Yes, that's fair.

Okay.

in fully million, piece $X So non-cash still million that that $X for range? the kind loaded is of that

year, X,XXX, shared yes. that’s a quarter I so XX Yes, base was comp guess for this

Thank Okay, you. great.

Thanks.

Thanks, Tony.

next Thank with question Rahmani Instructions] you. Our [Operator Jade KBW. comes from

open. is line now Your

you I Thanks color target if margin. NOI XX% the could wondering core give much. some around was very

property -- portfolio including age average Tricon around and homes For XX% next to we XX%. around on think XX% year peers, years XX is AMH around for I above their about for management it's for XX%, invitation meaningfully estimate

to it estate HOA or that of low if confidence else there those is gives margins? if potentially turnover wondering relates So taxes, real you something the lack in

there -- those all at we things, of the Jade, and XX.X%. at results you George we’ve all I we his external me, look and in we of lot paying quarter we there managers which remarks, it's Yes, achieved if portfolio, to say And would excuse and were we on savings, property things then last our say outlined the history of will other and now. as a markups upside is were external to here, -- the keep that expense is get will believe

-- margin didn’t by if be that’s of would think end NOI the we year. with we hit frankly achievable very So portfolio. XX% eminently disappointed we next We our

Okay. an It years like who considering are have nowhere aggressive target just peers doing XX%. that close this for seems to been several

I XX%, with as this say property we’ve like with efficient historically managers. so we Yes, said, consider financially XX% already. external achieved that’s what And portfolio I less

So XX% is I say higher achievable in and our we to that or that? internal think can eminently than only target fact

Okay.

your AFFO property. CapEx, In per guidance terms also only I implies, $XXX of the of CapEx recurring think

a most that we're I company's per think for property, the per of estimating year? X,XXX about

have that’s that assuming in slide, of $X,XXX we we’re Yes, CapEx. what

$X,XXX Okay, of CapEx?

Yes.

Okay.

past that to Is $XX NAV, the an still $XX of range. in terms you’ve In in said it's the accurate ballpark?

Yes, few I an on that’s -- a that. say ballpark. things And as accurate will

they First, quarter, to did mid XXs that a cap XX. to Phelps we company a somewhere & at validate XX us, range as valuation -- the of rate and we hire Duff said last out at use with came for

with What and provided quarter it cap by slow of I middle they and gives came was indexes history of information basis. this is that We out think also by HPI flow expected We that’s to history that. their of X the themselves. a MSA. the on of quarter cash people using that so provided slide calculate NOI, somewhere own in a we’ve range enough for think so a And it done rates purchases

I’m only I on through and can we've per think, flows that sure. everybody's now And XX.X% run calculate of which again, cap it numbers So, regardless their share. you But NAV everybody own debate. given, of BPO based will using if calculation, rate the can just that regardless about all think you guess cash the calculations do we I

that as dividend covering implications year-end, stock the think the this and that's of about a target of return number, you on X% So below and put on about only earnings earnings price NAV. place the it's is in yet meaningfully you $X.XX XXXX by NAV

best is it's NAV. at RESI say So, to you about is shareholder so path how the you do XXX of since trading NAV maximizing XX% that value XXXX, think at and

in price amount watch I be stock limited the of of know, stock. mean, price We day-to-day has counter flow. effect as a that’s Well, imagine -- particularly, we can obviously day. can, stock the in -- you It cap every we company a small a our technical [ph] can very the

through you decisions But make very run you business -- of So right goals we and or went to see 'XX. halfway management what or were every screen We stated that day. next about of based on wanted a year, as over beginning was do that on at two we established the in what hit them this you property clear year do can new list the the we is we those can't about we We list. for know in list, only we’ve all. long-term and goals what the the

an company didn’t the and that have it's a pretty as acquisition, function we example. are that whole drive into [indiscernible] attractive. the dynamic numbers so of whole the going company, an incredibly changes pulls It's strategic to And

look you we showing at what look today So think it we're our like. will first

stock to can and didn’t like. people these numbers. the -- the or think who we’re hit what what to that know I showing People what’s confident is you look we're believe we going wanted so today new company

I think answer that your the question. drive to

offline I about XX%, And of of pushing was that couldn’t XX%. the imagine other I for know XX%, can I is not not. you been XX%. it or sure saw or with what again, was I I at the I pretty wrong. Miles sure dialogue I’m sort not Adams only -- but could that’s I we people agree for. hitting, companies his NOI given think we be your can I’m has this -- should show pushing believe comment, sure for common budget. what was industry we you think what Some talk push thought most And actually that we’re I pretty a

So it's XX%, me, not higher. trust it's

I numbers those can we is you we what and -- think not, up. hit can an $X.XX say so that’s to that we basis like that it that, per things we’re we can on hit And an aggressive think to think annual annualized So, past share. people or these saying basis go 'XX continues on

the bags $X it and $X.XX whatever stock, not a question, not. it's So it's

And so the only this way see to things. hard to can you can you. get people which now to are believe when it that try how we see we and And is do we to be showing very transparent, so starting looks we're to

them to So have that have assumptions. process our and with we dialogue on want people

We hit to to about going numbers. them. think talk these we are of all And happy we're

much, hit actually you we can we're earnings with stock. It's to showing not people and but targets. show a only I to -- agree much higher. is that the so It's prove can And those you. And $X.XX way you that

Okay.

And got trading, Homes REITs Just at looking at the XXx XX.Xx everyone got about is at -- and and the comps FFO. rent about XX.Xx to where you’ve XXXX apartment Invitation on to you’ve XX.Xx. Homes American

you $XX.XX, XX% about still if XXx, $X.XX NAV. that’s just use the So of

path restructuring What transaction kind curious removing be AAMC to agreement you you've would it the shareholder think of just add to some additional what is HavenBrook? to scale is the ultimately unlock beyond kind do to it Is with maximizing done the you how overhang? value? of NAV? think that of M&A some I'm So Is catalyst going

think and a what people you as Well, you things what lot the thing most about. I I -- it's care think earnings. as That’s that’s know -- the is But alluded to. of and long-term growth important

a much, made model lot lot -- we the rid is getting is assets. And was the so, beginning obviously you as to service this there positioned the but to control those strategically At and all us years because customer and changing And away. We and do And of year, quarter can there's think think I’ve less of this we I over. that them see, to I acquisition, that want of two the different, gone the think of things bottom-line we better. can ourselves the a an we customers. much three to have things noisy We was affordable first acquisition of announced of over. housing distinguish over touch amount because We the closer be said space. enormous the want in with that

important the thing earnings. I think So is most

You have show money. can you to make people

first can So Cover you thing what’s the the do? dividend.

what do the you Here have others is have So me. we you just discussed? said show to and it to way

the step communicating public, the So is to our now to it Board, do that and shareholders. we're first to to

that going at think will of we're even that homes [indiscernible] with Now hit homes. going to We $X.XX that’s number, but the end 'XX. on XX,XXX We keep up.

or we the money we say two so need couldn’t These And to are dialogue first that’s have. that. guys a year going to print now, ago, before when

statement. powerful incredibly an that’s So

we mentioned property homes [indiscernible] know the that until you buying buy are we’re we’re manager. going a always things didn’t other to The X,XXX

were have You then opportunity. impressive don’t a great that you do these Miles things to, was when and team when do you you can, immediately. the

And that let's do right so we’ve now. said

more strategic that So [indiscernible] thing.

we talk about can't people but feel I -- ideas, always listen and we’ve ones, obviously ones, to say that you to all hope been open think I to to way. what willing people to we’re ideas we transparent any try ask all all to You trying other other and is as be other as

amount modeling You up acquisition did the enormous pick to Eruzione AMA, said can't in as and what in AMA you team we an were his the of buying. middle when question, with the [indiscernible] Rob of an you really mentioned

make it, that what it thought sure exactly buy you you you bought Now is got that was. to you get [indiscernible] the which modeled what you under and

unless is our [indiscernible] hope whole That’s sit first, and We in we’re down do and And beginning the to do who things goals, starting we’re we them get about say and revisit going people I and the acquisition on with to talking to out two put came starting going we’re AMA at fees year the and it try say have to start only wanted. and just you perfectly said we now AMA. now don’t the we our people that earlier not expenses really So to all blunt that go you goal that’s know stated I we underpromise the things go again. We going is to time. about unless to where we the time the but thing where, and team be companies don’t them. to believe over are the Miles after as to the overdeliver. of the

it. AMA, talked to in it's are Now the them time about both committed to Boards meetings. up to bring of We both last the

We will talk cycle. very It agenda agreement the next Boards to very sit in down when it will management about both will items we the again. be the be on high high, with them

million think change. this really quickly it NorthStar would to to we affiliated you is would act just refreshing is of the company be its shareholder I for hear, Realty a urge outcry covered a a million, when which Colony see what they a is fees management with AAMC One that's NAV, trade just lot on paying level were discount Xx on agreement This that stocks transaction at management because I today. Capital termination announced Europe $XX of of announced about $XX RESI or about I is firm because for activism and so. of to the with that value around receiving,

commented agreement. management refreshing it's you I So definitely that the about revisiting think

transaction. can We it I I Thank speak about at you. will appreciate look later. that that and

Thank you.

Thanks, Jade.

you. Thank

from next Securities. Northland question Mike Grondahl with comes Our

open. is Your line now

is pipeline that you guys. half you about look kind of of XX,XXX next Thanks, of first go how year in think you do what see year, from to To out? can that Yes. playing like? the do the thought Do the XX,XXX,

modeling Yes, you X, page do. felt capital appreciate, together, dividend it's a the front amount team, we when it's to putting It of can an we thing Mike, conversation But I Rob's mean, was of an amount important page team. [indiscernible] that teams, markets -- this -- that’s work as center. in work to it and put took enormous tough both the and by Miles enormous took

that So assumptions assumptions. of there's behind dozens page,

asking. you’re when, that affects homes One which is what of XX,XXX the things is that

would later like to me those have afternoon. Rob, this So, bought

I you enormous those phone everybody, So There's the better. sooner the we an done, of face all and are I amount and to about and people you liquidity. of the [indiscernible] which they both selling the enormous AMH think of on two listen of and other this an sale can talked there's amount the cover IVH, got a off. to buying other calls, talk liquidity, get

amount then execution. And liquidity. those a of enormous great trading, great there's guys did got So

So of XXX looking the time X,XXX. all pools we’re to at

tough guy he doesn't to who our we’ve buy handles the to is The [indiscernible] market price. So too is a and all get things of buying rich. right

on we him the things. to trust put price So right

Rob I letter to Steven is So Alicia but sees of we lot, a due I my a We see get not I wanted going but or year-end, [ph]. possible. months handshake and and out and appease going to that be something the [indiscernible] or Michael month that's pay hope that's next to two are the able until to but price say, I’m do get is go hope it. not half, of But for so, likes, in a to strategy, the then done be first intent have for diligence he might to he to think do by my we able would time. in running

And in of so, year. that half you the first kind the puts of

done that. you the year. is I’m I conservatively say will by you telling keep of year-end, So o we first posted But but by goal to get internal our half will it

strong a really are Got in it. And then, we economy.

homes, the end two reason number lower turnover? turnover, what’s you [indiscernible] Your or that for number see one

mean, I call always they’re out because move getting mortgage. of a statistics, are For who like in people you Mike, is our to number we us, -- for of homes what the

they our move And I’m competitor mortgages. because people it. so, out, what I think closed speak not sure of numbers [indiscernible], sort George about getting that of in are the XX% traditionally, that’s But so

XX. number year-to-date Our is under

mortgages. think I buy out -- our one to note important are its thing people not properties getting to in So, homes, not generally they’re moving

or are other move I reasons has to that. why plenty call turnover course, there out go can of something but people so And with.X like of percentage

There home. that it's business else, keeping because the in issues, people credit [indiscernible] credit people of because I to it’s were mean, hard issues it's always very always in the is aside, everybody so track

XX% -- over heard [indiscernible] of people about percent but you’ve So try don’t and [indiscernible] huge a talk notices -- eviction. to

worthiness of and that that’s underwriting. and whole credit credit separate So the conversation

that, issue. has through get big military transferred. you Military get a after we’ve in homes. deployment People -- it's a of lot So our been

Rob As brings of vis-à-vis but up, it's mortgage our highest, low. is one are the incredibly people,

good is --- sticky. incredibly in being the workforce it's So housing thing about

you’re about healthcare transferred And so workers. people unless getting talking are

mobile world. over maybe pharmaceuticals as teachers, or technology is all not First, know, other responder whatever, it you carriers, as more some the is

a find So they they system. a can't it's house, they community, find find a very They a Mike. school a afford very, home,

people quite But is And the yet. these in houses Stay approach not this we're getting are numbers four So these for their there turnover years. it's starting seeing to home. years,

I between two and have think other probably people three.

on every They’re I all get are And to -- I going every it's longer. housing up, going as not for building think I is that I you think as in [indiscernible] read alarmingly it's can and things said supply. day affordable to incredibly, short city rates page, these us. going said with this When country, good that housing.

solution. We are the

Good.

Okay. Hey, thanks for for this. both

All right, Thank you. Mike.

Thank closing I the the would call company session. you. now remarks. turn Q&A over to concludes to for today’s back This like

and everyone a day. you. Thank you great Thank have

Thanks to everyone.

participating and today’s conference. the conclude Ladies program. you for gentlemen, does thank in This

may day. a disconnect. have You all great Everyone