American Homes 4 Rent (AMH) 28 Jul 232023 Q2 Earnings call transcript

Greetings, and welcome to AMH Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Nicholas Fromm, Director of Investor Relations. you. Thank

begin. may You

and you conference us are call. Officer; Operating Chief Thank Financial quarter David our XXXX Executive Officer; Chief Smith, earnings With Bryan Lau, for morning. Chief for Officer. joining second Singelyn, Chris Good me today

advised are may include actual that number are to forward-looking other statements All forward-looking in included of call materially historical from these in differ uncertainties to a cause of that results statements fact this that risks this be statements. statements projected Please than conference could and call subject those statements.

of factors These the July risks with releases and our could XXth, other our in are and that SEC. results All and XXXX. described press today, in business as future forward-looking filings affect statements our adversely only speak

no A revise otherwise, to events of future package. statements, to any new result supplemental and law. assume or non-GAAP a earnings measures obligation included or information by forward-looking reconciliation of required update in as whether our is press information, release financial GAAP except as We

a financial GAAP are non-GAAP measures, information our results, detailed and our and in As and fully package. earnings including release operating note, supplemental

conference these at webcast as the well documents replay find our www.amh.com. on SEC and of reports can You as this call website audio

will the With that, I our Singelyn. to turn call CEO, David over

in last supported thank quarter the same core for of second results, fundamentals growth and year. strong over by delivered for This $X.XX excellent joining share you of operating resulted everyone leasing another X.X% Welcome us today. quarter FFO quarter We or the and per momentum.

our drivers continued leasing peak season, and spreads to we Importantly, leasing generated superior from execution better-than-anticipated demand teams. during thanks

the represents $X.XX midpoint, increased per high core have end FFO previous a range. and our basis share year which guidance on at by guidance As growth year XXXX full a of over result, we the X.X% full

challenging solid the rentals home growing national housing durable fundamentals demand footing and single-family remains and shortage ongoing The with consistent single-family for sector on affordability rental dynamics. driven by

resident the AMH with well family-friendly to foreseeable in operating few for of providing experience. changes, the results neighborhoods a by housing we expect point and positioned be as to the offering to high-quality durable, desirable consistent future. remain signs option near-term any Further, continues convenient a superior environment choice.

the to continues the game. name turning investment front. Now be the growth to Responsible of

Our SFR traditional and portfolio builder largely return to quality. a on we factors market, as investment seen national asset but few for channels come Recently, not did still opportunities location are they our and have criteria such meet pause.

with arise and contacts Our ready we platform. teams our the when AMH industry, are criteria be accretive communications our continue across frequent to the to will in opportunities be that meet and

X,XXX on our represent Our to a the and delivered construction internal growth. nearly prudent on program, Year-to-date, which homes external we investing in focus have all in started development have continues scheduled remaining manner deliveries our of remains through XXXX.

Looking anticipate to growth the based on pipeline. another of into year we visibility XXXX, have incremental we current

quality the a Finally, JPMorgan to with I have our to second This advised that platforms entered by venture further a and great announce and development program. joint development operational development Management. is of a we happy institutional avenue expand into provides Asset am our to investors testament

the through you in walk will later call. details Chris additional

will mark happy company. up, traded next being As I wrap anniversary mention to I that as publicly am week XX-year a our

success to remarkable truly years. something thank to who built the have AMH. want here over at our We contributed And everyone I

to operations. update turn Bryan for on over Now, I'll our an Bryan?

you, Thank Dave.

pricing the robust results leasing momentum strong was off a season. by leasing that June highlighted spring throughout capped Solid quarter

and X.X%, quarter. respectively, portfolio, rate same-home our X.X%, we generated spreads, blended the posting better-than-expected of growth new For renewal and for X%,

field the increase same year. point teams. efforts days This XX%, last to remained leasing in strong same last average occupied year, saw XX turnover to at core the and over revenue the a growth X.X% compared of basis resulted we thanks period Although in of same-home period our

as to growth continues year. X.X% core of to expenses second growth Same-home expense Combined, of operating tax was the be this expected quarter timing impacted core led in same-home prior and of X.X%. NOI by property the

our is Due blended XX X.X% the our to improved core growth guide the increase in the the for our our strength from second at XXXX first Underlying guidance of a we outlook expectation year results X% mid-Xs. the is area, have midpoint. full increased the and year spread points of half the the previous new in which half, guide revenue a high in to revenue by significant same-home basis

to the occupancy Altogether, range our the of the XXs, team's spreads with finalized, in higher solid strength slightly guidance blended yet reflects preliminary mid-XX execution approximately And Additionally, full and we revision these X%. operating this of support and environment to manage continue occupancy year holistically we topline. the now results the high a move-outs of contemplated. seasonal than not July although volume trends be in expect which reflects originally as

An same-home the unchanged operating core at previous XX point from growth which a guidance increase X.XX% brings to expectation. expense new NOI basis our guide represents our midpoint,

of Before durability AMH the long-term specifically like for in factors I I wrap-up, demand would single-family Homes. rentals more for to the highlight some and driving

high-quality in our AMH because locations. macro well-positioned our and the external that of desirable referenced While is factors sector, Dave assets their everyone benefit especially

in the are committed experience resident industry. best we providing Additionally, to the

AMH platform We Resident innovate home provider us to service through technology allow strategic and efficiently to made investments care. deliver have such and These level into XXX. through our initiatives a unmatched and of operational premier efforts an as continue

confidence guidance year and In closing, increased of reflects a just finished demand we half leasing great environment. first our and in the the our

the turn over I'll for update. call financial to the Chris that, With

three and my I'll comments morning Thanks, areas Bryan good today. in cover everyone.

solid guidance. Asset XXXX quarterly second, and third, investors our results; advised venture an sheet by joint review with on update close plan, of with and new our JPMorgan a our balance announced recently First, our an around Management, including I'll capital update increased institutional

$XX quarter per $X.XX strong diluted another of common attributable delivered We earnings million growth results. shareholders or income net share. operating our with off with Starting of to

X.X% unit share FFO growth. year-over-year an $X.XX and X.X% of On FFO, of core we representing generated FFO, and representing adjusted year-over-year growth $X.XX basis,

core NOI Driving was total as growth joint consistent development portfolios. execution a XXX wholly-owned delivered quarter as X.X% from this venture same-home our homes our and well portfolio of to program, from which year-over-year our

traditional of builder Outside our remained and acquisition programs development, national on hold.

net on generating average the area selling properties the quarter However, low $XXX an activity, disposition rate we to million saw of another at in robust side, over mid-X% XXX of proceeds. approximately cap

like on to taxes. I'd quick of share couple property Next, a updates

our First, Texas, quarterly outside update business of as usual. is

underway course, assessed the process, of through XX% values many We this over have part we And these portfolio. appeals values challenging will of balance of be initial are the finalized for which as the now of received normal year. over

property a to things, Second, Texas, State with calendar among is respect benefit property to this other tax recently which program, lawmakers later relief to year. tax expected agreed large rates

equation rate that tax an property although by valuation stance it of one have only and And those reduction. now early lines, early might appeal that increases. the and mind be to property are in are offset year's taxes on initial heavily subset driven of received anticipated we part this rates tougher keep However, overall to that this conclude, annual potential valuation Along this results appears taking has year. the Texas reductions too offices valuation it's assessor a

year At pieces. from needs still moving year. of tax full amount XXXX And information to given a our received, that the expectations taxes of start this of point, our remain property be the the have property lot still unchanged

our Next, like balance plan. I'd capital turn to and to sheet

Moody's testament upgraded quarterly another For by best-in-class call, our great very balance to Investor improving Services stable to profile. a our is with to last happy starters, we sheet earnings outlook. I'm continually share credit were subsequent and to BAAX that This

our preferred adjusted EBITDA, facility had In shares sheet $X.XX revolving $XXX was terms of at on of our balance the net including debt, X.X sheet updates times. to other was fully undrawn. billion of credit million the cash balance and the end quarter, We

on capital beyond be track over our update we plan, pipeline invest coming we we proud this overall years. remain XX,XXX XXXX, look development quick into capital lots delivered AMH a inventory As And million finished remain of approximately the our will existing that $XXX as of a year. of over on to

With pipeline joint than opportunity far that are Asset our believe is Management. why announce we times said, that is as by the investors institutional existing which to venture we greater with new second shared length, many excited before, we've of JPMorgan our very AMH development advised

continued capital will new XX% for time long-term interest of from opportunities. our provide will our the During capital to capture fees market high-quality, a public venture, opportunity new previous venture in the development economic we interest. joint and promoted hold million upside with JV of uncertainty, Like incremental $XXX

will The has and own will and an delivering development homes XXXX beyond. in with JV also term been focus its cultivating on that structured evergreen begin likely pipeline new

JPMorgan capital us investors the of confidence to without quality to of our pipeline the approximately relationship to also gross testament now total Management Asset great assets. AMH capital prudently enabling owned a our our institutional platform ability is with by maintain below brings with total JV billion, Development while built-in reliance wholly $X.X new assets This on which continue XX% common growing program provides our and development to advised equity

important predictable growth our Thank you will to consistent further hard ability transaction and work for dedication that on over and continue your enable this the to team delivering time.

portfolio, demand continued into release. to the the to same which of our Starting recognizing quarter, in XX core the as yesterday expectations Before guidance, I'll we our call points results basis was revised spring and open covered, increased by third midpoint trends year increased the press XXXX the earnings Bryan questions, growth home cover revenue your strong evening's leasing we've full X.X%. with

interest full property $X.XX. basis portfolio, operating per entire our increased of NOI year activity, core share along our Coupled to have expense expectations XXXX increased income with X.XX%, of contemplating the expectations increased higher the with year we generated growth XX by cash disposition outlook, the midpoint by core unchanged we've our across better-than-expected on core our full expectations core NOI points midpoint modestly from FFO

expectation the of and end growth new reflects high represents midpoint range Our per our a year-over-year share X.X%. of $X.XX of previous

IPO to Dave's I'd outsized truly company. a creating owner, kind to positions our value one the like to into and second only we operator, open as continue decade as of a the AMH shareholder rental country's large-scale developer which your us is Finally, of questions, enthusiasm as uniquely traded approach we as integrated homes, reiterate call publicly single-family our XX-year anniversary.

the your call open to that, And questions. we'll Operator? with

we'll you. At conducting Instructions] question-and-answer session. a be time, this [Operator Thank

comes first question. from with Capital BMO Please with Juan Our Markets. proceed your question Sanabria

morning. Hi good

that where kind that Just little we cleansing issues this that debt stand era process? past drove year-over-year bad and assuming I'm are could or tenancy about sequentially in churn that and part And of in a of bit present some of COVID you hoping what talk at increase quarter.

is churn, you there's Hi Juan, couple the factors Thank there. this extra Bryan. the question. involved a of for

of more than we return increase, an seeing we're is a to them prior years. of One saw in seasonality

a of effect. part it So seasonal is

And the then you're process the resolution second exactly right, delinquency well quarter. in went

referenced So, part there incremental workouts calls. we were the move-outs as of earnings prior in there that

in that of And where left cleansing, are are or the how we rid we of being out get much -- portfolio? to is

left. exactly it the changes jurisdictions. made quantify procedural very in and to progress. a the how on some backlogs been difficult good much We core Yes. of temporary bit depends little It's of is there's A couple

good The isolated back. not these a But we're able that it and to system-wide. is news about part to the few it's get is best counties homes

them market into leasing turning growth. releasing the really them teams good quickly rate are back and Our new we're at

and well area give speaking, Juan, on pretty expectations more with as can quarter, X% I landed progress, debt. you bit it, I'd were bad little Hey the a say collections generally good Second update in, but the consistent call for here. pool. our low a what of just same-home general Chris broader

taking Bryan that subset residents still the are work process of to was through through talking working resolution bit we're like a about. that longer Again, little delinquency

until debt as this our kind But the area guidance out just X% quarter, low we're XXXX. the And it to this opportunity bit, little that quicker year, same early into zooming course it's can a contemplates count bad see too a level through to we in that still shared at may work numbers. still touch of our optimistic have little a we continues to but through the over bit point, of it pull begin on we current last

with Evercore. Our your next question. from Steve Sakwa with question proceed Please comes

like, the strength was Good color better that and could just bit maybe Bryan, little you that on morning. seeing, and seeing about are have where expectations you Thanks. little bit renewal market a softer maybe I more talk if a provide bit markets than expected? you are just trends you're you things where some blended a wondering some

renewals with leasing spring into Sure. strong really and July Thanks Steve. that continued to nearly a accelerating We season, had X%.

August slight Looking kind moderation Can September? closer I would a a as a season. thinking leasing of little about moderation the for to see finish a high from seen forward, peak July as QX, see we and seven the the period Xs I perspective, there. of of bit renewal and We've

Regarding that a little historical a rate Florida from we're you the the at it say, and portfolio, and portfolio if still bit of the relative softerness, is Antonio we're strength look both from Las occupancy you well within and strong, really seeing. I guess, extremely perspective, San But happy a extremely performing in levels Vegas. with an demand perspective, it's could

maybe are half a for just could Dave, on XXXX development follow-up And quick XXXX? guess, And what us the deliveries for, you the development. deliveries? then Okay. where expectations remind are second yields the just in your sitting I

Thank Yes. you.

we expected the where way second as the go balance the of sure not And six are I'm making to year. the are the be. a this we the start point, at get with progress. where me Let great year, we to is in by that we, but of we all quarter throughout just end

I are is we asset. delivering sale. that What homebuilders are that building next It's to the where for durable locations product high-quality, in is know do well-located,

today, are and And of so in that the the builder. on MLS year. infill the national assets can't that we end buy progress it's the But you now just lot between or a of see positions the

question St. comes Haendel Next from

Please Mizuho. with with your Juste question. proceed

Hey, good morning.

Hey morning Haendel.

expense the on is question First guide.

guys was didn't OpEx the second but turnover up side. raise the You quarter, a guys you in bit highlighted quite

can talk OpEx loss. from bit Texas recent like doesn't there's you guide any It sound anticipated what's with the So, about that keeping intact. benefit a change tax

there? expectations for of year? And half kind offsets curious are the So, what what in your back of some turnover the are of the

again to Look, of it'd unchanged just start Chris from Yes. Sure, unpack remain helpful the probably think the expense of Haendel. the pieces I be which It's the here. guide, year.

X% expense in which And I the that a what a insurance talked of our it, various Let's that basis, about lot is, XX%. obviously, to about XXs. through. We take on expected about Recall on seeing guide past XX% in the play there with up everything the the the remarks. range increasing taxes, That's year to remainder pieces property full else is talked call we're XX% prepared being then in quarters.

we're basis, area. XX% management and a call the it, to expecting On full property year XX%

our saw increases turn comparison this it's As the it, a reminder, last that inflationary-like modest the the XXX year year. in, to against program full HOAs into then and reflects the X% making Resident a general at some beginning of and investments basis. on of area inflationary we R&M understaffing year environment and really X% then that we've on been call And the

we're it, touch you blend all X% R&M of for And midpoint that of as a in experiencing it probably and think level path call gets that, the together quarter as higher we of kind year, to full seasonal expect X% X.XX%. to the then we'd up slightly our to about of into and tick a our and glide the range turn third trend year move-outs area, in

more versus that. cost, That's component today you potentially And to not a your Thanks. just savings more great a headwind. risk? bit potential color, there? line talk Appreciate you're be versus what can item, a on the one self-insurance certainly but there insurance cost historically. much Chris. of huge how balance potentially do how catastrophic Maybe seeing continues I specific OpEx, you of And there of know a it's bit

a in we're that good about thinking standpoint, you're for through something renewal what from a an business. managing for the year small with of coming this insurance -- done. item very Again, our as expense mind It's increase question. is it's line us see top of Insurance is but Yes. is the XXs. we right, That's the

quarter. catastrophic for our that is a the the really are reminder, board insurance state I in which bit years of broader a pretty rate this But we multiple contemplated in had market, touched losses increase trouble last think what the As increases of say reflects now I that's after on everyone. with we through across property broadly, would consistent rippling guidance. more

envision insurance landscape before, our of as somewhat the insurance we to it's captive, better control so unfortunately, in a more materially solutions example, for the creates we shared near And exactly difficult which where take looks the future, creative opportunity scenario trajectory through think the like to right. you're

important relatively we're it own more time knew to company be of more captives A captive is couple ago, to ensuring our don't we our what control couple of an captive would of on And years small, insurance annual dollars million layer over we insurance mature. of need Today, formed time. programs our a as basis.

to insurance of opportunities it the doesn't it into But control change a help time. costs broadly of see over complexion kind we But third-party little risk doing more us and the absolute to that increases use portfolio. overall the future bit while responsibly,

with with Our comes from Eric next Citi. Please proceed your Wolfe question. question

sell SREIT a saw just We smaller portfolio. Thanks.

if had quality there. Just at whether well? marked it you're also as growth curious you you if opinion on of seeing other looked it, portfolio the prospects And any being

looking of it's we the the bid the and way traded. those we location that very did at we're would we're We portfolio the location it's that the area as at It's Dave. the the grow time an substantially assets first Yes, assets. this not time. portfolio, quality we to look is, Eric, looking we're on this We're whether Thanks not this that at portfolio envision of familiar this to looking at has portfolio with portfolio this the traded, at portfolio. when want

I've have all in and the be of ability the and get ability yields quality off to disciplined we assets, referred the and discerning acquisitions. we the program development of assets our of our that and that those of to because already And those

So, the prepared mean said largely of as get majority the remarks, out on the what doesn't I we as well builders, national are MLS seeing and of that in. today, we're back in it as portfolios but we market, won't

are there, much consistent last much With don't Eric, them second of one our we see meet to or the economic And the that requirements. about are that your assets out part what Most quarter. than of continue talked the traded. portfolios them very question, respect we with of of yield on smaller do to quality portfolios

with with Feldman proceed Jamie from your is question next Wells Fargo. Please Our question.

you. Thank you your those your opportunities, find can were other transactions if or equity along a of thinking buy, get? you the about those how big sources I with sticking lines? opportunities to along guess, I larger partnerships JV anything guess do about capital think investment and lines, to JVs JPMorgan value And are how or you how or

Chris Jamie, Morning question. here. Good

into As our the Asset most bit the are introduce we now I $X.X totality Management second venture. increase with joint partnerships could of a recent mentioned, debt JPMorgan billion about little right that if

in focused an national portfolio there capital. look becomes as ventures opportunity the potentially present the Keep more we're strategically, what example, an development to all thinking right view grow and as we're doing as builder opportunistic specifically cost that themselves we do equity of more We if that further. opportunistically opportunities at on or now. about growing whether the MLS to weapon than to are that pipeline relative mind to broader more incremental those opportunities be that attractive, themselves, that development. pipeline capture opportunities, our of present

taking to area, capacity And including at add to us I opportunistic second we well. the times up at also opportunity nice would well. there capacity the as on times on ended gives relative debt as right comfortable be And that now is six sheet X.X EBITDA. to quarter which We that then we're into But preferred it hand. the balance look the a

to I I you a And helpful. just the can to back benefit TWISTR, Texas little guess, surprised guess tax we're -- talk that's about a just not Okay, you. going then on it's that bigger the

think nuances that be much will what talk it So, you don't are true of help. more can you a about the

to XX% big what the circuit seemed We And meaningful think not it sure like we're about we us. missing. either. was news just appraisal make then is to you as understand to It breaker, you want just that

Yes, sure.

is ultimately, of I that notion post year reductions look, here value in timing, because beginning us we're is a of think even talking increases recognizing muted being So, those the that, the about are benefit though right. that it this to I to a appeal rate chance what there general, But is that think see. muted, we're is

relief I do program to next keep believe to there anticipated XXXX at least through year. tax is positive read-through a here rates compressed that as the is

And see into favorably see this so could as I HPA as hopefully some to potentially moderation XXXX. assessment begin we setting pools, up

next with Wolfe Our question your from proceed with is Keegan question. Please Carl Research.

time the Yes, thanks guys. for

costs So your average and appeared year-over-year. turnover CapEx R&M average higher recurring materially

something particular driven you else curious its how assets? turnover your portfolio in are and trends, challenging Just much of legacy elevated by experiencing in CapEx versus more

Hi higher Yes, R&M CapEx expenses field. Keegan, managing drive in of I done does this of Bryan. is you our job, Turnover a product for thank a think, investment of is the and question. turnover the it increased Part good particular. costs. really We've in

We talked program. were quickly and we a about very XXX bit done when Resident They've job homes of a these efficiently. prepared the getting that good discussing little

costs about the delinquency related pressures of also we talked be of some year that we this additional Some and earlier to resolutions the see the call. inflationary CapEx that can in

Dave. is this Keegan,

and to as legacy last see in numbers, existing your acquired quarterly legacy $XXX homes appears those hubs we And On we that which of in the properties the looking the maintenance to properties do about at part cost cost it's the and maintain homes. about those more component the channels acquired the just we yes, MLS. on of question for it maintain

X,XXX significantly ones some low same that less. came in on ones And that the in development our of that out are homes are These the $XXXs. about portfolio. national got have So, from It's we got the that homebuilders history home the about homes, are $XXX.

for XX% XX% about we ourselves. the developed the were So cheaper it rough the not builders of math, cheaper ones that for national coming appears out doing that homes

seeing I you're the color gears there, what here, future guys planning what guess is in given goes the you impacting JV; you how bucket JV And into shifting your I wholly-owned land? is And think this have currently how some relevant you a the can markets you And just market? in. remind That's decide prospective question are that versus land Dave. just great what -- given us second development

Yes.

me Let separate two questions. those

Let quarter me land see I'll that between half about take look the if first but supplement, and talk second methodology and JVs it's But allocation the some the you'll at land, nominal. have us. today, our market, Chris you we did acquire very

say kind the would I of we in in the are we are same place And that development.

seeing are the hit underwriting in getting our marketplace the just as the quarter, of second we models. improvements closer a homes. we're few We But where and bought ourselves to opportunities

With we we significant for are acquisitions. said, a next and keep few pipeline, years set in with have that or mind without well the that

is the replenish XXXX positioned well goal XXXX, to time Our make in but sure that near-term. periods, that the we we're XXXX, for

patient. the have be ability to we So,

chase have We With have respect opportunities make to can us. be utility you opportunities the to opportunities go? right those be the disciplined, just to the to to the don't for we and need going Chris, allocation, We're opportunities.

indistinguishable Yes, into into in JVs is cetera. sheet little the nature our a going of or projects, of et bit Chris would taking back whether quality, terms a of here. I say location, the the Keegan, they're step on-balance pipeline

slightly a similar slightly initial prospects about think nuance growth with just profile, some opportunity capture only with as the today, lower return that total great long-term a projects yield may is incremental a yield that it parameters. touch to have The lower be a we initial could different

are for a great context. venture Those joint fit the

similar, or be So, in I different are projects terms speaking, quality today. generally location. of said, little very again, that's could the the one bit like piece But and a that very, nuanced

question question. next from with proceed Adam with Please Kramer is Our Stanley. Morgan your

good guys. quarter there. Hey Really

forward. So, kind as kind then good and July to on you where side, Bryan, both gave just the of well. lease the in trends. maybe some going really of Look, were XX-year want lease for ask on just you I detail the new I think, congrats July? renewal anniversary But on new about

Adam. you, Thank

increase. July asked had for you X.X% little you cut an bit. July new for think I a when out leases, we we

about, So into that as been was talked continuing fantastic leasing spring season really strong strength as and we're July, we The has as demand, we well. through as get into the QX seeing well.

slight I'd levels. get We're can, that expect do side QX X%s of we'll be to everything a going maybe we the able QX. as balance moderation are continue but love and the into the be the we into to at these to little on expectations I'd moderating a for new QX. bit

Helpful. just short maybe couple ones. of then Thank you. And a

stand so where far And kind year? kind today? margin Or success kind you've in thinking full of full earlier today? then forecast. that the this those you is numbers rent potentially be the year you for seeing had you're lease loss same I are Are the to more rent about know growth the the the for year full Just when provided of market of year growth, year

an your to To X%. interesting lease, quarter, around saw Yes. loss consistent And answer first last it's I there's question with what on we distinction. think

last with this we Our at saw you look markets, consistent quarter. the market expectations, broad if what still

relative John really we're how that think X% the seeing markets. at year the And a in our outperform market locations is within assets that's to quality But what to X% to started X%. I we're X%, expanded expectations. and to testament the those markets to able our Burns quality to

Zelman Our from Dennis with & your next question McGill Associates. question. Please with proceed comes

for thanks time. the Hi,

with that the or to back from will own seeded will land you JV, already be start JV scratch? new the Going

start from it Dennis. No, will scratch,

Okay.

land, aside It uncertain the you're year? think So, sounds expect early pipeline would the on have but to next you'd what then, that now, particularly piece, seems from setting a context little like the on would can on year, you some wholly-owned do Chris, that the going you're can you us good I give yield. into and be already part would for it making decisions it's what of like be, the but maybe

vague good. on push year? it ingredients like seems but going be up. maybe been all potential for forward, are there what little could market's the next The prices have bit are Home to Again, a the

Yes, not XXXX. doing numbers, have Dave. we side, ground development the have out of that's improvements to ready product On in -- on that the land that on have land, we're going and you indicated, the been be our Dennis, the to we XXXX come we release as it's the land will but

So guidance, than good will a see delivery greater that's where Without to be. we we yes, XXXX. have idea going number specific in a of giving be pretty it

Please from Street. Our question. next question with comes proceed with your Alan Green Peterson

update rent today. hoping, where give sector just in was that of And spending to today capping yourselves pricing that a rent across income you kind on portfolio, where out do I people from to standpoint? Bryan, years, given the Thanks. income an for are on see the housing opportunity than or you ratios if prior can more are

thanks income Alan, that at years of the that the interesting things is keeping so question. last the in looked we the is is we've Yes, demand seen couple as A for with rents. applicant the great that few increase pace

went they at the to homes income If applicants relative you in about rents year, that applying were with prior for X%, which to. our QX is change the up the the stated look specifically, consistent for

confidence gives good, very aspect. concerned times, of five following the appropriately. health around about We're and capacity so is forward. demand that maintained just have collections us ratios of rent provides in lot a The particular We're it the to income of going lot income Our not is happy. the a

this Alan, is Dave.

and guess, the our our of that. reason to than very, the -- one markets homes is couple strong. the Demand about is you one thing, it less Today, in And When expensive a every strong. very rent cost housing, of add to it's XX one income levels top talk buy. of very part to me is I of markets, Let

markets, XX. If average June call And you look if XX.X% look those at it, it of XX quarterly, at it's the XX%. we at

one So, that is that strong of demand. the maintaining things is

stronger they that With proposition would been stronger in are of available last they demand has for quality locations you and years, that are said, assets the becoming known. and in which also the the I in in today that remind school are as the strong districts rental value which single-family the the getting better XX

single-family rentals for today. demand strong very very, a So,

maybe, you the JVs could on us Understood. over comments. call years are those fully what run it, once ramped? income shifting to sense management, these be a Appreciate all the development Chris, Can two give next, management, stabilized asset just JV. over property the for rate And three fee to

super right The to profit largely on the of this as about not fees a in larger structured here. infrastructure to for margin a enabling margin totality us base. on the the it's past, and is The over are leverage those for like recovery our way There ventures a us Sure. fees us, fees. Yes. wide think but we've cost them, shared the

us, JVs development real participation the is further program opportunity the here growing For themselves. in the

Asset without of then our And structures, which the the reminder, as from the and JPMorgan the meaning ability unique and venture have economics monetize development portion really be which powerful attractive time. is to after us the especially need the of program to given process assets, we operation our for value initial is creation a nature the unique interest our will opportunity longer-term via Management earn over provides really, opportunity promoted construction that properties, sell our to really effectively a evergreen promoted of the interest

question with with Please RBC Our your Capital question. Markets. next proceed is Brad from Heffern

there you market? just in where the year-over-year, strength housing increasing the walk the any that everybody. Can broader thanks has we'll view Yes, construction currently declines been given and are previous change costs see to through

reduction bat X,XXX and board the goes $XXX, range. it that house. Today, That a couple Good construction seen the significant Yes. be in last $X,XXX in both the the of lumber used reduction to that. we've the Brad, into The of have feet, about talked in question, on it's the costs year-over-year, as very parts actually significant material calls we over and is

So, reduction significant there. very, very

many that of to we late At up, We of comment platforms. that little costs. a it talk maybe more other last we the the is we our about today. the thought With year, beginning input housing year, your has hasn't extent market reduction anticipated about having thing in some XXX investments into the the But one materialized have other Resident materialized. of picking would. made bit And

Well, control from better It's discounts better volume we making from cost. to the ago, get in today, to a ability better efficiencies a the couple seeing into our And of our that we're benefits platform. et construction vendors, development inventory years were ability in investments cetera.

some So, benefits. process, through we have that seen

drivers of us out years. all rates Steve significantly and play homes quarters and the to, fourth the of I is rental between think, as question, costs in this Sakwa's future construction prior our now end leads lower the to and more And of those that seeing increasing the efficiencies year third and

but have And do because And wanted that. got build rent about supply. MLS to then out more I there for their get locked they a in are thoughts Thanks have it. people your think pretty supply? acquisitions that to Obviously, that rate low everyone, much suggests for how renting anything Okay, homes mortgages? you to halt the on is grown

it's home acquisition the renting right. Again, One to but investment parts. is about, The the shadow Bryan two and talk the investing inventory for supply of acquisition side, MLS let reduced. significantly kind on of and on the Yes. XXX% out existing is in inventory you're

of seen Not mortgages XX% are can't their replace. it's People favorable in markets, surprise. kind many what In trapped that of we've historically. they with homes a

So they inventory. of can't to has and led a scarcity move that

of it's that have prices think I part recently. strong the the remained reason

we we realized when development, what have really said, seeing of today. economic we benefit grow of significantly is that got With for the all thesis is we into one And today. that And could our out play -- in are cycles. that development

we So ability grow. to have the

We're match well-located homes to to this you it fund attractive deliver very them. using when year, homes to cost very capital X,XXX, of X,XXX going we're yields

economic to in cycles. the have ability all we So grow

disciplined the to to We buying homes. the ability the we right. It and and until have won't. mean wait And additional we have is time ability discerning just doesn't be

indicated box. getting As land buy I to we're land, our that closer on is seeing

acquisition the a very get in even to are more Xs. opportunity close seeing them little in sharp market, Xs We're of On opportunities some the side, there the while, the a -- at best, once overall, probably shooting we're at not. the bit But and on maybe a still based. low buy box

homes thousands every to write continue We of month.

now two the we here are if of So, one up. we and does, may buy the say very, very it that between end and pick year. volume to hard is But It respect may are homes, right are want impacts rental there how we applier right you the demand, do prepared homes to and to shadow they Bryan, to With it locations. take inventory if and the that? or

I We rent. start -- of in down inventory question that is the Brad, Sure. to we're seeing build to I'm whether most that going closely. think from lot very of actually with a track markets. Build-to-rent extra supply your included

the We a our the the of the seeing of pressures supply smaller in tends are It's occupancy why couple of lag San rest part portfolio. Antonio markets. reason to

increase still have Keep strong year-over-year an in change But the in it's XX% couple. for reason we Vegas, and a supply Las is Antonio San in area. the seen that that mind, to in name

build Let opportunity whether the an question. seeing to miss. We're today. me rent. will started portfolio. vertical on to forgot of take Build-to-rent, a that We, I the as look these at less a for again, to actually location back haven't piece I fit the they that the of land a some acquire. have come to add they opportunities seeing be to the discerning few we to of But developed definitely, those that in and process we're good are line. was is finish

with next with Daniel Scotiabank. Our comes question from proceed your question. Please Tricarico

Thank you.

the where First is question as strong today. on relative of occupancy. Curious if wasn't be picture you thought would affordability, occupancy as it there about

run Just business. thinking occupancies term healthy longer the the rate about for

occupancy rest replacing XX%, would the around if range be a non-paying now from points could guidance, the average range I year. don't know, the you full the quantify the also to those XX% about, in tenants. the like XX drop for or year which XX wonder in of high And basis put impact on

relative start going talking being relationship it expensive Daniel. you, with the Thank to occupancy the in strength to is than about rent to Yes. to -- of I'm own. less

to up look very rent not to business, in it expensive dynamic well when and capitalizing on you well in but our holds we're that environments. say economics very historically was more If today, than was that we've our actually the not to business performed slipped both own,

occupancy. it think than probably affect I would growth really more rate so

the we this maybe a XX, we've that artificial made year which we bit helpful the pleased We're seeing little the years, but with back in over past an occupancy XX, gains into we're half peak to think settling few during be of expect healthy in the XXs the is of very forward. and very COVID, peak a around going

those replacing from impact tenants? the quantify non-paying could you way Any

the me I system it quantify court of to regulatory the that don't for to some that backlog and the procedural the and -- the of for challenges of difficult It's predict make of some year. the difficult speed the know balance because exact

the where the And quickly, been just today? Dave, You've selling on you rates most homes? these maybe asked efficient And in you what spread cap MLS markets one-off. pay have been

a in as I Well, the the on low average. be Xs may There it's MLS. that not the today, to markets market indicated, in X even some are

we're sharp opportunities? entirely in prepared the now. such I on indicated opportunities, and the shooting I we on mean see think Where do you largely were there the of I MLS, remarks earlier, the are As sideline, right on sideline as

but sure And in volume. just not opportunities. a in -- They're not not clarify they're they're volume, let's we that market necessarily They're they're unique trend they're throughout, that make item. necessary not

Our next proceed Capital with question question. Please Wurschmidt Markets. your Austin comes KeyBanc from with

Great. you. Thank

So, the that lease based you even level bit loss Am and I year year, for rate on half should back the better. roughly X% the the lease lease a implied about of maybe XXXX growth or roughly X% in that's around finish with correctly? to thinking little you earn-in to same the have a the loss a

this Yes, is Austin, Bryan.

wait we to the commentary, to terms and a think prediction, little I are of that lease in see terms loss I think right But bit. have you earn-in of on the on. in you're

million have the the $XXX high just to you year-to-date about. Thanks. just $XXX previously target dispositions disposition exceeded And million separately, I'm -- of that end then spoke

funding capacity opportunities selling acquisition just XXXX? -- to What's in to continue attractive if either build materialize prefund more for needs the or order the appetite those

Yes. Good question, Chris here.

demand sheer strong by scarcity through the see creates in prices our just asking you Meaning enabled or disposition average into Just with low driven that, year's program, opportunity that us when attractive disposition back is be rates that enabled out, which of really pointed programs. and of last recycling exactly Same We're buyer -- this which met across quarter. housing you're mid-Xs achieve supply has sales traction cap as as prices to the to we a disposition right. great the growth to really bring again, market, continuing continue near it activity, are country. terms capital at the us to really to in our

that management single capital, decisions program being we through management we these every look, and And selling recycling but decisions. operational our identified that are are yes, discrete asset based on made process. the asset With said, home in are rigorous is being

transaction part as back this that we're we in the seasonally think moderates year. still in back the activity. of year, And about generally But the speaking, market to think volumes part going the look, I of see commonly

But this. could So, proceeds year million disposition a our to moderate this we do and could full see a call well. year in see million range. basis, the we as half volumes the a $XXX could touch $XXX of we settling There's in this better chance back than disposition year's on

Jade question. is Please with with KBW. from proceed question your next Rahmani Our

equity Hi. This to the Jade. on for venture moving platform for quarter JV entering on management with how emphasize forward? joint and is into asset you for Congrats the that capital plan And On have do under nice target note, you Sabshon JPMorgan. much a management? Jason do growing a

There's cost balance This on relative hard come those right the opportunities capital back X considerations comments is of go cost right capture the Priority but to into sheet level Chris, of I with to of But can our that return some at play. target. of I on that. balance capital. profile sheet, number is prior Sure. start to no for and fast would

mission other program the capital continue to we that common us critical have that consideration talking about And capturing as here the think really that we fund built-in equity confidence is we've that been about, opportunity development without capital. to it's on our then to reliance development

accomplish joint assets, terms owned capital we prudently goals. as all where exactly perfect wholly the play of pipeline total that into XX% strategically in to of is important it our of us here, the gross to very metrics below those venture and solution assets keep And that's enable comes

Great. Thank you.

is question with Linda from Jefferies. proceed with next your Please Our question. Tsai

Hi.

look most as which versus the trim markets portfolio to over see opportunity at spread, having do which expand you over next years? you your the is the XX-plus As markets few

Dave. Yes. Linda, it's

the think talking look we specifics, it markets that have I today I greatest see markets way we that the long-term at that think Those about are look to we easy an is without at the evaluate runway. the in. how are building

You have to make a development. you long-term when do commitment

So, opportunity. significant them but where we're we not and greatest the XX that's a of in that we're majority all I in see markets, would say

side, disposition think touched a upon On I the bit. little Chris this

Bryan did, think I too.

we We quarter that have an every properties pretty process management the every look and look on much month. asset markets at properties markets. detail We at

get bit couple to markets, a them, overweight out want we comes that, not to a but little little of have we that and Chicago bit of mind there. we have that felt with we're a pared may back And in

markets? then is risk. cost insurance ensure insurance certain the way leave your the ability to shifting or is or program And decision to expand captive the to maturing Or reduce your of

Yes.

that standpoint, insurance little standpoint, are. aspect how the greater weather think I demand even of is probably maintaining -- correlate from where a aspect, is looked the cost home and repair with where the is be a the insurance is that insurance the should the a in on at to opportunities So bit And context. where the standpoint does

we been at have closely for number We this a looked of -- very years. have

you see others last back the go was to some was major on minor compared can a but it, Tampa you history the go if Tampa and to understand what hurricane doubt of impact about issues, at our year. look event. there. weather-related Tampa that back pretty you in -- There's our no And we experience.

in that And so -- of a a there's greater analysis insurance than little equation. there's bit just

but as also rental where is where are to at demand the look And increases so and have rate the well. potential we

line bottom markets. to So, it's large holistic evaluating very approach a

turn end call for now closing session. the We question-and-answer have David to would Singelyn comments. the like reached I to the of back over

Have We'll well. good operator. Thank of next you, as talk day. you on again to Thank you quarter's call. all you a to

conference. today's concludes This

thank You your time this participation. for and disconnect you we may your lines at