Tricon Residential (TCN) 12 May 222022 Q1 Earnings call transcript

Good morning. My name is Emma and I will be your conference operator today. At this time, I would like to welcome everyone to the Tricon Residential’s First Quarter 2022 Analyst Conference Call. [Operator Instructions] I’d now like to hand the conference over to your speaker today, Wojtek Nowak, Managing Director of Capital Markets. Thank you. ahead. go Please

in Good us Emma. the forward-looking you to contain risks events that cause and you were thank months and to and I’d distributed Thank questions discuss morning, remind Tricon’s answers joining shared or your which information XXXX, to actual March for news first for release ended yesterday. differ our you, uncertainties XX, everyone the that like information. quarter X materially. results and This remarks to may statements subject to is may results

more most Information and For our information, on company management please are the which well our refer SEDAR, Annual on recent quarterly and as and package our to website website. analysis available EDGAR discussion form, as supplemental

include in measures, that Our otherwise dollars accessible reconciled website be like references explained and I financial on will webcast quoted our everyone stated. and to call. there is please remind that to our which the being are U.S. non-GAAP in they are following this which MD&A. call would note available unless by And figures remarks all also

our you Lastly, follow referring to that will please along the be through that slide can presentation by note we a access you during call, webcast, joining directly website. where can our

and CEO and find will President turn I that, in You over triconresidential.com, the the Gary and Tricon. registration Berman, can With Events. under presentation the webcast both investor News section of of to call

Wojtek you, Thank good morning and everyone.

to you. to our with discuss a We excited start QX terrific XXXX and have am I had results

X. from takeaways our Slide with on me you share Let of quarter key some the

strategy, insatiable signs slowing. our rental for to Sun demand continue benefit strength home we from showing Belt middle of market with First, no of a the

extremely performing into Our proven expect to to future. it and be continue we the well resilient throughout business pandemic, the has

acquired year-over-year, this plan this on on with over We acquire XX% and homes homes plus Second, X,XXX grew year, proportionate by our growth X,XXX track. we’re quarter. to NOI is pace

Third, growth. high record are than rent stronger with our operations ever turnover, low single-family solid record and rental occupancy

trends increase in our we As pleased expect for continue, to these are we to same-home guidance year. the NOI announce an

fee of we maintaining our balance near-term revenue while QX meaningful a while all plans. sheet finally, liquidity achieved XXXX. growth from maturities overhead expenses And this with to Next, flexible remained ample increased and fund our year-over-year, minimal stable

dig in You X. on reflected the Clearly, can on these business details throughout booming metrics the is we’ll see Slide other into and call. our all fronts, summary the and

volatile a The our let’s Slide to lot a right now, are We inflation, rates, intentionally through interest So move of with Taleb. defensive, Nicholas again X. uncertainty business to and it going time Nassim economy. SFR the surrounding think built public coined prove markets current our by business term itself the environment. believe author as will anti-fragile, once and We the after be in of

Beyond expect a difficult thrive under or Taleb’s more key for of resilience tenets conditions of to reasons. and number robustness, volatile we

of stable XX%. hard household we working $XX,XXX, with demographics ratio rent comfortable income focused resilient has a of and the on profile resident solid First, remain are income job middle-market

to material and the time efficiencies for our from programs on Second, us save national in this scale parts, our of us allow enable hyperinflation, homes. of appliances, that procurement money to benefit

for Third, high high as to the say, like cure I prices prices. is

And And acquire us most X.X% X% and love homes to a finally, built-in provide housing should to the prices rent growth demand market market. Moreover, provide to on do our as managed our given about our that loss for growth we get hedge, quality, homes are XX% rents at only at a As we rates consistently is long for I runway a homes speaks high Tricon higher of growth. sustainable strong cap between than are able leads any over balance Likewise, for XX% allows XXX making exposed XX,XXX correlation cost available. itself. sheet. a well rising both supply-constrained The past to as for renting we that term. week, also is central rates, In X%, over an XX% owning home strategy a home insatiable mortgage the prices as rising inflation home. and we we what to monthly a rent are professionally home housing, what estimate longer

care single-family is we only outlook, and important market, don’t a home believe and in focus supply round want service. can’t housing confident responsibly, of lifestyle and housing families, rental price mission, to believe or business the affordable who accessible American addressing there an residents truly our key shortage our at for managed role turnkey If beyond, home not plays safe a We’re essential because frontline low-maintenance in also get our also It provides above but of to can about afford we empower an quality outstanding Tricon, America’s single-family is what’s with buy namely, noble we provide that to and point. in to purity strongly customer challenge some acute time At them. that to housing a back employees that on to strongly a our prices. and properly provides go it residents, either an so

some to interview this engage we Slide we is selectively A in as a to recent with provide about industry to X, Minutes to to misconceptions case industry Tricon’s narrative. media and want positive There message a are you point. with several address. into that shape decision help aim to turn XX insights And I so, spread our

Street, Wall not are we we provider. housing are a First,

the many lives enhance our a including to Program, in recently better have our residents, financial our designed to people-first launched Tricon and well-being Vantage company place of for the programs We are residents.

programs educational ranges so to services and of choose. to credit-builder families other if suite Our home a programs help our from buy tools they

increases We not to boxing time annual existing our typically right peace woven of residents’ rates market. in and with practice our mind while are Tricon we longstanding security a set company our residents our rent home. And financial rent Second, first for into renewal prioritize our they’re living want at self-governing buyers. finally, increases, home is DNA of below

the to accounts lack for less of of homes this to new X,XXX In XXXX the the In America’s are upgrading committed to doing them are buy existing in we being program proactive homes part the housing new own for and about we solving challenges, by to tremendous solution doing require business In homes. and see we discuss good. we typically for financial resale quality housing being results. would supply to markets. the to stock a we’re our Wissam and volumes build-to-rent is now be opportunity more X% that up and adding overall to we livable. strategy. driving are our of platform housing we And pass acquisition so, make homes. I market communities of presentation than regard, short, What’s the the of where prices over renovation of for like half Our our our

support inflation, the growth morning interest year. metrics our cushion Gary the year-over-year And was to I an to us continue FFO which rapid this rates, on AFFO $XX Slide achieve a goals tough another top-notch share, our everyone. our was payout we quarterly you, an rising was our our XX%. I AFFO Core who execute X% operating us. and continues want QX up Thank for record-high quarter summarize chain increase to quarter. great delivering was on conflicts, geopolitical and of with for track firmly shortages, supply million. provide ratio year-over-year. good resident remain report thank $X.XX per ample dedicated background, On to cents, while with per FFO earlier ambitious to X, team to Core we am share key experience. proud to set XX% dividend we Despite cents of $X.XX

of quarter. per Slide talk to about drivers FFO this the and move Let’s Core X share

in NOI. by single-family home portfolio same increase a This delivered Tricon’s driven growth Our XX% proportionate increase in and was home count. rental in XX% proportionate year-over-year XX.X% NOI an rental

XX% year. contributions from joint results newly also In past increase year. to incremental residential management comp by this compared created portfolio assets a from strong property ventures a indication fees the residential versus our development, XX% Our year. of last very in in the lower US is prior It FFO reflects fees the driven FFO our by decrease and reflects XXX% businesses, from US last adjacent This year. multifamily

up On side, lower reduced sequentially them from stay lower as corporate actually we embrace rate. growth. expense expenses staffed around by were down note, our higher level. the had bit Of offset and for and we to significantly, we expect expenses this QX interest a we from our as benefit was corporate overhead overhead This debt

and growth as higher last count to quarter of share fund reduce offering this XX% diluted year’s the leverage. Lastly, a equity result was

Let’s turn discuss operating our to revenue X Slide and fee to efficiencies.

we to third-party to managing for faster overhead also a efficient scale and The portion us strategy run unique fees large allow more expenses. offset earn corporate a of our Our us allows capital business.

directly overhead bottom overhead prior allow cover to coverage fees majority shareholders Our episodic. management strong fees in property fees, to year. the contributing includes benefit we the XX% our fees, expect in costs, excludes growth development $XX the last from current about our to fees, tend covered million This of fee they quarter, be recurring revenue XX% our and XXX% compared fee management the our expenses recurrent up of totaled to as Ultimately, line. NOI asset streams to from but Together year. performance these

Let’s Slide talk about our sheet on X. balance

prioritize have on remaining We to focused while growth. deleveraging continued

since with quarter, and at IPO, to at our equity current down of almost this leverage achieved US have We was Much cut our in EBITDA common net XXXX, debt offering, financing. adjusted of net equity prior in start to debt to assets the preferred X.Xx XX%. and the half

proportionate Slide minimal here debt we maturities. focused that our have near-term is the Turning XX, to on and key remain profile takeaway

emphasize and We have really million I growth. fund to liquidity credit Further, $XXX a of cash want to facilities available strong this. in our position

proportionate expenses strong exposure reflects tracking controllable inflationary of XX includes XX, the On to am of point same a partly of increase minimal and higher at our offset the latest present debt environment, rate securitization our balance by XXXX. on April. for rates, April, to also in closed higher to guidance of is our increase with some result happy in growth, in which This by print. end relative our but fixed a This range year following we prior have very driven the basis updated, our rising pressure NOI to home Slide property QX as transaction, expenses. towards I you strong growth We moderation XX% revenue which which continuing to taxes guided is see

remain XX%, same rates on unchanged. expected XXXX On our reiterate growing higher targets to we and our such financing include overhead at somewhat homes our annual to expectations leverage part of as share recurring in to The long-term core space FFO targets at fee year. compounded SFR dashboards. XX% acquiring However, by our guidance, share home FFO efficiency expanding as X-year the will portfolio we XX, future the our our trends our be And Slide strong per XX,XXX improving X,XXX a overhead revenue. Xx homes, per debt of be covered debt maintaining stable our of reiterate that net offset of may Xx plus EBITDA, this performance rate by

for rates NOI insight growth over on rising the a provides Moreover, makes also comfortable in our man buffer, strong Kevin the us was the which interest more Olympic targets, with with drivers the seeing FFO headwind And with tan, surfer, with target our you the increasing I’ll the call of NOI outlook. are the Baldridge. give to are Although growth, set the to us rates we mind. turn

Thanks, Wissam, and Good morning, everyone.

the of achieved. best-in-class we’ve fuel day. a performance question, to quarter our incredibly testament team dedicated to for And want beyond and proud and without I’m our operations, team, is all which Our approach, growth. continue breadth above I thank first our depth of a going of strong and resident-first every to what

in our we’ve a start XX% with by our basis. aggregate XX% on Let’s extended portfolio past year, the XX. portfolio growth proportionate with In Slide on

QX. with seasonally year in of target QX, a over acquiring quarter, and well off towards are our homes we new and channels. putting home XXXX, through acquired resale expect to in typically pace homes on QX track so accelerate to a in X,XXX great this acquisition slower We X,XXX the QX start us is

As so home buying us cap have rents, of allows continue to prices targeted to rates our average which X% increased, X.X%. have

NOI, home compared which of Second aspect same our is XX.X% growth to year. by expanded last

increase and occupancy, government the X%. a by roughly during components point on outsized partially X.X% rental driven XX.X% basis debt basis XX was This dig Let’s revenue in received assistance XXX by points below Same growth bad of up XX. Slide in into revenue to rental is a uptake made the quarter. decrease increasing rent, was helped home in average X.X%. This of

debt X.X% moving towards Going term. forward, bad near X%, back we anticipate in the

Our by rent growth and by a X.X% increasing an X.X% during on on increase with the XX.X% healthy quarter, increase rents remains blended renewals. move-ins new underpinned

of our Our residents, below turnover policy renewals levels our keeps for growth self-governing, rent which reflect existing turn, and in market low. maintains

saw strong As growth we of we this April, continuation a into moved trend. rent

as home pack continue solar same growth other insurance increasing enhance like, resident telecom Finally, embedded fees home over per to path cleaning also discounted to almost could which last we we or you going panels, ancillary lease revenue after on technology renter’s the services revenue next on pause forward, driver the XX. increased rent such of as key roll our the as over see late new to our current meaningfully, rates out Slide services, see can in them a in XX% putting portfolio, ancillary couple years introduce and be services. A our year, pandemic. grew to XX% partnerships, take-up during up from value expected by and We and our experience, programs other of loss resumed

estimated with in self-governing in resident XX% has increasing an have lease policy our by renewals which similarly recapture XX%. new loss leases, been portfolio. long this resulted Our We to on coupled on close to of across tenure

our in runway loss to this for growth expect to a rent portfolio. provide multi-year We lease

Slide discuss expense to driven same year. was in same XX.X% by of property the home turn The taxes expenses. XX X.X% now Let’s to increasing home growth last

down higher and calls and level in elevated significant Repairs COVID. we to appreciation also prior price were this but year expect we that maintenance return higher markets. quarters as a We in against meaningfully, of comp reflect numbers, as up maintenance year-over-year variance a come property a taxes bit regardless, future quarter our home expenses are to post

XX% order work repair all of materials and XX%, order, of benefit with accounts. volume purchased scope labor the of the was cost to Our about an added while up increased work and each even work

turnover by year, bias turnover done proportion work was XXX with Along record our with other costs longer last decreased a as on down points the On the thanks given the customers. hand, our a considerably, and occupancy rate base greater being low of our to being on to resident expense tenure. homes extensive XX.X%, from focus capitalized, more

year, property managing and to the home. of per lower results we’ve seen management On a homes cost side, benefits which the to tech-enabled more XX% scale offset our centralized inflation last we’re platform, compared using in as

containment to our efficiencies HOA direct pressures. other the expenses value-enhancing concentrate tax marketing, other and as up it and turnover, home were insurance our Whereas providing smart X.X%, were were up technology expenses cost only controllable we include and residents, up on property counteract and to which management, our costs direct XX%. expenses, of R&M to insurance. way, inflation expenses renters another incremental Lastly, due services non-controllable of Put including property

focused offset through while on the and national control inflation keeping things creating possible, We like, driving our procurement can possible. program emphasis managing best improvement, to experience operational are the resident on where efficiencies technology the all and an we

will back call Gary turn I for over closing the remarks. Now, to

Thank you, Kevin.

that it’s driven over I with be creation If to XX. year Slide on conclude past is thing and today, value the in leave you can performance our place. have that continue there one Let’s factors the

focus global XX,XXX by investors, with As presentation, to a leading portfolio clear path the steadfast we SFR real its By estate this said Tricon on of growth. end homes is XXXX. throughout to our increasing has partnering

to capital with in target we place And balance sheet, this achieve in favorable strong operating the have that believe confidence. come. should drive platform, to industry years tailwinds our operating for third-party We performance

that times to of questions. for do concludes value same. the of business. our process, trends is are businesses But are could And of our operator, prepared our balance to represent these should this, to empowering assets located hopefully, that, solid. SFR I’m Our best Wissam, now platform billion who changed we about use team account multifamily back and questions. the communities answer to Belt built Carmody industry robust filled I portfolio, Andy are the to our ultimately legacy to we in Emma, Canadian pass Sun a rock we NAV also for in remarks. Ellenzweig to growing our outlook. with call our can remain our from flow while a entire and drive be. to be forget We and X% We’ve the include and forward incredible demand let’s $X.X can Tricon by Jon a in will be hasn’t with Kevin, into will acknowledge sale source our shareholders. what also value, benefiting good, and shareholders. Xx worth the and business, in appreciation of ambitious while into supercharge believe the confident businesses, in to do they coupled residents, our housing in to and monetize Should which core and the elevate portfolio these assets. for a doing strong I our residents of tough an sheet, That growth. broader uncertainty. because take or results the carry of course, inspire all These And the meaningful the portfolio which they our home And lives joined put and market same These multifamily growth heart continuing to pay our by soul we to our serving their meaningful humbled team over the plans. would proceeds interest not about SFR housing be high-quality we to XX% time, debt translate for cash build simplify upside potential represent business, adjacent grow down IFRS

first from Instructions] Luthra with Goldman today Sachs. comes of question Your Chandni [Operator the line

line Your now is open.

Hi, have homebuying crossed you size last rates these ability about shifted market cap in own rates a talk how risen have good you an Could my weeks are behavior general and that particular you about question. you you How what how given and precipitatiously given buyer box months, market especially morning. taking the for the in think seeing couple to has X.XX%? your in have that maintain now environment, Thank rates such do in in mind? of

to think Good to you. Chandni. It’s unpack you. to Hi, I’m talk try to trying for to Gary. I’m – that going

reevaluating our of our I And and We cutting think, did out tweaks can right? example, think target. that X% a continuously But We buy sufficient daily, the when spread. us coverage of some maybe lowest X.X% cap at securitization we X.X%, buying for can lower think about tweaks. moving a we’re make our about so homes, box. We cap provides about Today, X.X%. be is make cap rate probably could would about, to and spread’s we’re buying weekly. rates, we’re that narrowing thereby market increasing out obviously still think lot rate, cap that narrowed. in We doing what have with We band The X.X%. rates. markets

maintain ultimately is goal a to positive spread. Our

is interest is than We’re all and negative I creative buy will homes. things rate the it’s allergic With we best or for more to move will little on used But still home-buying strong. the us see you peter we being stabilize much do environment, higher rates of so to as gets rates, equal, the with going, bit. what to homes this that tell curve, or it’s higher guess our these continue to to keep Right? things a That’s respect but guess. up less there’s more start to out can that, to that leverage, our mortgage extremely even market

clairvoyance. not We’re

even new basis from where this prices they at or price, by seen moved that stabilize come back case, home down. prices look and more home you potentially or more, in prices, points every existing rates increased have certainly single We’ve up If significantly, time home they mortgage much XXX previous started. cycles,

environment of also what’s that about we’ve Now, seen shortage is such different this supply. never

and both rate we bidders what’s that’s home sales, front in and the our So, demand The to number on see from using is incentives what still for different. own the we is exceptionally drive market, what unbelievably but housing locks projects and existing the example, and are Bidders, hear home definitely continue is of other decreasing. so tight, to new strong.

yet. We haven’t seen any cracks

is for again, right? though going and opportunity cap us a higher and stabilize. way that at us to are at allow to a guess to it Because, higher cap prices actually buy If start time stabilize, homes, increase you best home they provides buy see these if home we time. prices see that rates, again, better time, stabilize rates continue Our homes the over could to one ultimately to over they at rents are, higher rates,

Thanks for your thoughts there, Gary.

to So, potentially if home thinking you out-years slows, mean, XXXX, not and ability about should leases higher if and new an can from elevated out-years charge price there support well at as and I the clip here, appreciation? no just home I’m we price I’m thinking rents? charge really but home-buying is appreciation think how moderates,

in and between we’ve empirical over and XX almost So, this, correlation business time, this what that studies, rents. seen years, we’ve through XXX% we’ve seen happens home this is been prices for and there’s

in Now, they don’t tandem. necessarily move

mean a that is are to So, a rates now prices home compression buying think we’re home increase, homes, just one we higher that which to slightly time. But what probably two mortgage period rates higher we we’ll we’ve see a at one or likely a when those that’s up will prices Rents through when seen in much to have cap stabilize. at cap or rents, catch will been continue slight time. with extremely faster moved led we is and rates where home homes than what buy rapidly

depending mean, think X%, about rents, if probably future of horizon what on too. that’s likely our is, terms In growth rent That I that rent long-term, will blended I mean, you not X%, yes, your sustainable. of way moderate there’s growth, no

to at, let’s to we the than X%, growth. XX% loss-to-lease let’s around this to is go that, and XXXX, There so we forecast, so, Our like feel experience, families to to And mind. are There’s a business more as the that strong in much The right, will American business, continue looked the for I’m say, homes huge much sure very of rents our it’s and home in we’re that’s assuming incredible couple doesn’t product. going NOI portfolio, growth, keep we many how and things it low is maintenance see is say outer-years We’re still astounding, today. if so probably, There just right? in right? booming So, other get talked into The result, for growth. on continue an leasing the again, prices moderate, going XX,XXX thing will just rent insatiable, I maybe going a lifestyle, it’s that, how want outsized moderate. hesitant just bit available future. where week. think a higher And are the that away. we about, demand, our right? XXX we’re given as not It this getting demand mean, little is that’s inquiries it’s any we

you Thank that insight. for

Mario Bank. Your question from of with comes Saric line next the Deutsche

line Your open. is now

so be homes rental trade if Can with that color does and to in reported kind range, kind to the pertains close in U.S. at on implications Partners in X,XXX recent of My morning. or so grants, good transaction valuation Group of forth? on a to terms one there – acquire your Hi, the what portfolio, billion-dollar of acquiring terms for you question transaction implications it so shed location, what taking consideration varying may of any

number there’s number with overlap Ellenzweig and private don’t in thanks that, unpack markets them of there the South, Mario, and that also but that Sure, and in Tricon. to X handful ours, John last deep been there’s with especially more months transaction, have speaking. This I of believe That overlap a a Midwest, the that actually place a of is taken transactions Yes. there’s much. very market

say it in place, was what private seeing as target some see of taking market trading you’re the the keen for of markets, less strong But cap So, us. public would of spite a I at or extremely in rates. transactions turbulence they’re still we

months, some X and we’ve in cases, twos tight the last threes trade, in-place portfolios in the as the rent. high Over seen on low as

when market transactions think ample these important to I loss-to-lease. private in is or portfolio our there’s what’s remember seeing even you’re

So take X cap the mark-to-market rent. to in transaction fours mid may in-place on low that in the on might place rate be low rent actually

And you’re in of so, valuation that’s also portfolio. important own mind to when but those thinking trades, the our about keep

you will to that. to add real continuing I’ll and estate, the we investors about I of Yes, and markets, when forward. happen their mean, that allocation think increase private are to going expect continue

money. And return preponderance is basis real in XX huge points places of For what every the the those to best are industrial get another allocated be estate. That’s of in ways because call we and that capital beds a $XXX private increase allocation, amount residential, many now sheds, $XX into billion to coming billion needs and to today. to

They we’re as happening investors speak seeing And costs capital which is wall of What’s think not underlying out sense. just exit the market. their makes any or private are so really I mean the are interest financing higher. expectations, math return rates there’s there. a we changed I adjusting because

in on our XX%. portfolios market And the we’ve from guess seen that peak by drop from probably market best pricing the being is residential, in private so

as is XX%, private far that we if at. maybe rates private XX we the said say cap where they up pricing XXXX, lower down just let’s are think Jon the market market be is might peak, are markets of Mario, say basis February in about public So, points, but

trading at X.X% cap we’re where of rate. is It’s absurd. kind absolutely is guess best a Our kind implied Maybe trading of That absurd. today. we’re

are. XX think probably points up today, valuations about, they’re rate are in the factoring interest about is private at loss-to-lease. private factoring That’s higher reason markets today. maybe talked If public of where that X.X% curve. of markets Jon are where a that, you the And in X.X%, the basis because valuations, loss-to-lease market not again, in because they’re The they’re much for from and

my related follow-up then it throw original And question, not but my is necessarily there. to I’ll Okay. in

you X think to the months, higher specifically at stuff when the if a back Gary, level, Just you margins. and the thinking on like look past about call, QX and

organization the what how to on And couple incrementally On those months to address that relative months of on cautious the more what’s months pivoted most positive you’re has out X say you and thing relative conversely, then is thing the X your that last would ago? you’re ago stands one things? that to in incrementally one margin, the

[indiscernible] SFR NOI margin? you’re talking about

overall. saying no, just No, I’m overall business-wise. No,

Business well, wise, this at have mean, monitored never seen mean, I before. is unbelievably we’ve inflationary in where to be think I very we’re an I we look and carefully inflation. certainly things environment. look,

If about never and our sheet NATO, we’ve we’ve before, have between war happened balance that’s lifetimes. you we that normalization seen it, a think got Russia never in

for COVID in is. Like, zero even have the don’t I policies if wanted it you China. what that storm That’s to inflation, We we’d perfect up. create think make

in that entire business. our an affects we So, environment, are and inflationary

monitor to inflation, the to driving like right? bit. and on little that’s you positive, than keeping an in believe expenses. mean, it’s our a can that like is But It time, in faster which but the we’re and we but point revenue chain I insurmountable thing is feel growth, this quarter, that’s starting seen– is look NOI both where stabilize really never this feel stabilizing Supply we bit, expense we’re continue fortunate really NOI nothing we’re a to we’ve issues a business print we growth where very little seen this at real the not high, Now, that to drive eye to we’ve starting if revenues they’re is have business. exceptional at high. continue they’re the

seeing are within And kind any stagflation portfolio? you Okay. of the

XX%, No. rents, it like I as certainly higher of could up NOI those at is not the about talk pump some multifamily gas you is the of feel in numbers up and does capital are business we’re I in far happening level, mean, I XX% but markets. I strong about mean, it economic growth booming. the sense this in gives ways, SFR our XX% it, business if what’s higher prices ground, reflect business high unbelievable. feels in our stagflation, the think just concerned, U.S., you the Certainly, ways. in That you a mean, that how prices and mean, with some on an in Canada. in and and period is let’s grocery as

Okay. Thank you.

Joseph Your Citi. next Nick comes of from with question line the

is now line Your open.

market. bullish, Hey, single-family Nick. market And market’s that valuation is public want it’s commented the or I how here just about to at stock are risk you think the how you to of a as your bit investors Bilerman, least relative absurd Gary, And is is public everything little about private going puck Michael of, rental, think puck be future. I down thought more with appears more be, sort the talking where there today. as to the and a is rather right? perspective are about where Prices in than home the much there you’re from may

or rate think discount that higher a home may have investors eventually on could turning prices when markets based and public they the down risk profile shouldn’t start rents that? go why So,

the the built talked market. we’re it is moment. out moves just it mean amount going. outlook. uncertainty for we I today, and what the probably it in which where but market is the equity there, capital is will up, necessarily My rock inflationary also, best movements that changing. we’re Like any XX,XXX our defensive. today to market’s as I obviously, we seeing concerned, and market don’t type a as be remain obviously times, is changing. that And we think think I resilient There’s future. reflected to cost street, in the the that situation ground debt business or change and markets. a This can’t move today. the It don’t given do far relatively see I our as People And having in or see the main If, is an what’s of on perform in change That’s that reasons markets impact pricing. market we’re And is on things confident leasing That and we’re about live we business, have happen somewhere. what to was happening doesn’t and doesn’t huge a recessionary our doesn’t inquiries to times. for the week, that’s so being demand what’s We have Well, very in We and was in the stabilize, to mean, overreact. will going mean uncertainty. and for don’t in of much well on that both when lower be and the we’ve following changing. available beyond tend XXX to leads is this that the uncertain, the stock in That’s to hunch inflation that or in control, homes said, volatile recession, see in but business business our leads. what got valuations. outlook and the We getting I demand solid. is we underlying of think to be built is able And

of with capital. I use leverage takes could affect growth that very is, you view? to up people’s but stock, growth little how of have provided the that some of plans use bit obviously, equity already and then leveraged just recently, bunch have, you want that and that, excess the and money have. you lot that, balance it other your effectively of your where raised buy you to offering to does future big you guess, own stock into the of sort you to Arguably, You and the that cuts and a capital a growth you a obviously, do did sheet that want

balancing very are be need going equity your fund how you level to growth to strong to are some external you of where able plan? So, attractive

I and great Yes. it’s valuation the It a stock is is point up question. time, move market in but a Look, quickly. can it mean today, low

time. of situation, what think to that buying or you homes our And we’re in makes we don’t external by from back buying was home week, I NOI just lot the a I reaction and to forever, a growing have the year, our our want the stock. going might said, if same that plus we’re X,XXX strong. stock’s mean, to about, the XX% about and point way now be homes low different year of this a growth, and So, sense. a think a I knee is right? it’s as today say, If switch that’s incredibly combination low business a jerk think a stock it’s we is but growth. think We don’t That’s

for than where a in grow over an makes on it our can by let’s our the back focus finding rather stock. business buying environment XX% in say year. We’re FFO sure to year, growth NOI a time think we We XX% sense efficiencies and

Thanks. It’s here. Nick

Sorry, one more.

balance sheet, how then your floating given interest target the rates, change on on that the leverage the does Just and views XX% rate higher debt?

going exactly on And the that the it other Wissam. floating. as great and upper in and XXXX, Actually, for– sheet keep at is, speak. which years currently of floating, balance Of our rate actually, couple up to we it so our the today, term the a are completely rate a refinance really de-leveraging, to is that impact of our that we’re is pretty fixed, securitization XX% going we’re Yes. we It’s actually items fixed a and we is end, cap more debt is of we’ve it’s so loan at one environments. we’re the doesn’t XX% looking that debt. as job importantly, XX% over lot done the past matured two higher can floating a looking

X.XX, we’re market still is to positive The probably buying be We’re but what probably to XX% a in and still today. you’re lower than rate going higher spread X.XX, leverage, going it’s the be it’s closer maybe to at at.

as apart really for a is and we’re try the to from as to maturity really So, long position, and great that, big in we’re can, next we fix going XXXX.

have start there. thinking time options to we about So,

forward. if Nick, thing relatively longer is the chime time, I that right? of is venture in other in that a joint joint our rate target partners going we certainly way that period in we’re going of be effective might possible another to possible lower down debt a joint of ventures consider bring That’s new cost it’s high ventures would kind environment the to we our leverage, remain with something for

you. Thank

Your line question next of with from Morgan Richard comes Stanley. the Hill

Your open. line now is

kind and ask is the little Hey, of team, Currently, actually what of can Gary, timeline Adam, Rich. the I kind kind I remind mentioned, us about on ask it’s could if all, changed X,XXX you at on fundraising been you for the And kind of to bit wanted shifted or you you kind for for fundraising, per new a of JVs what home timeline have plan? embodying executing that as potentially? you executed kind the been has year right of of plan, that if this have

a going actually than little are We we faster thought.

have little anticipated One of so are a setting the target. the in we prices than is up, reasons out home we moved putting faster initially capital X-year our

a capital. new faster The going to from but to puts year faster, there say The conversations operations going much to – capital’s it’s the XX,XXX we partners the capital growth, what could to the XXXX, it put raise we possible is that half out or would that well have manage all our be to us many are how certainly can’t that capital buy, on having more sooner. than to They specifically existing real with projecting. currently place of– are we governor or the manage, is so end mark then that our to invest lot home JVs whether a it’s can the And extremely we they partners do this them. that’s out keep bullish. performed want funds homes we in how to going. sector. position can in lot expect are I meaningfully to we year for very by love a and of kind get happen in a of They sooner. want And but put We be

State not This Homebuilder that’s is existing that’s is with fully we year our are we – Retirement call will something are out. JVX or really is on nearly venture that are fully so, fundraising committed the you But exciting. on venture Arizona really past not System, focused with T built-to-rent joint that what committed. X, capital now tell Direct on what the program, putting I we the And now

we about so to position think successor are in a a now vehicle. And launching

should something the you later that’s in So, be year. expecting

your some those of tight in what switching know up expense just guess on gears, from I is what a these be be? same-store may view and with kind be kind think if might that, a going turnover, turnover quarter, right, seemingly kind adds once then assumption the over I if helpful. given market, it hell of be the operating on there controllable, that’s expense turnover lines has that of, always kind just done, it changed of a really to XX% that’s those I lower going right, is to housing other kind hold may levels, given of right, to view the April, of impacted? If There if every expenses Great, right, expenses. future, of some or about, turnover here long-term changes your

in few the would we it’s remember below in chime saying line did I on ever Well, just but say get a let I can items, I expense we a maybe ago, And below maybe.” XX%. Right. level now will think years, of Kevin that mind-blowing. XX%, I be we “Maybe Kevin million never of years turnover. level high this are some at mean I

doing I great just form people think the of on are is partly I this, of is It’s projected the the leave. this we there that and mean service that never self-governing a on It’s how a that the So, such housing. just a to right. And our out don’t function just want we great fact and such job quality much would happen. thought team never we renewals, demand home of

we so we term this to but think and seems I that’s we kind looking just I low. XX% the probably expectations, at a looked that to we of are still I look XX% our if going XX% at say change when XXXX, projections, And So, turnover. think year, our XX%, this think typically projecting maybe at year XX% will forecast, let’s longer be

to say maybe year, various give sense how add, will Kevin, would of XX% and I line items, longer the want impact that that? XX%, to you XX% Anything this but you well, So, term. some on XX% else to

now your I psychology People projections, see No, little been changing. down hunkering of that that turnover will up – think have is go to bit. and we a am COVID I because

from people I are get Gary see to the start And it starting it I like are that – this back we we see so seeing a so bit. think COVID a bit little will think we seeing little happening because and starting to I decoupling will don’t the move to low, era. more already staying saying turnover was I what mean

in help So, mitigate we but stay it’s to and will going it’s still our that’s the see turnover probably, to go going most up XX% to a XX% bit, costs.

things the other done The orders increased future is, have work doing that into we our going help costs we the are in-house. so to that, just

XX% centralized to up our that into XX% in-house of by office. work that orders are our techs. get is of done We

contracts have the of with We that national have have some us pressures. inflationary shield helped purchase also

locked So, appliances, for the prices to going we up seeing, X%. and in at some have are XX%, of cost X%, in we got instance, cases, X%

So, hedge that. it’s on a giving us

XX in by are homes Virtual costs quickly our and Intelligent the concert buying years provides allows to call rolled to we are so efficiently so. now. we – homes days we out of that The respond seen work then lower service. also have XX% more these have orders, what or and Assistant, that with also have us better customer we enter, to into permission age are and the years We we right – average are XX XX-years-old translate to And IVA,

faster, us us increasing our also are homes see it’s satisfaction, getting more per week, the number makes day, houses push techs helping efficient. of then which and We to and so the per

our constantly are costs thinking and addition we that in lower to are to the process low. So, technology turnover experiencing, standpoint we keep improvement standpoint a from

helpful. really it. and appreciate really you Thank again It’s

Thank Great. you.

line comes of next Heffern RBC. Your with from question the Brad

now Your is open. line

Hey everyone.

‘XX? the the what’s how all change in of for the recap does potential likelihood affect picture am a given and that of I about portfolio talked just have the the funding that U.S. turmoil, past. multifamily You curious, capital market’s

do. certainly we given still has know, more But still still or would perhaps a a we Brad. looking less little are you something as It It’s like to makes bit not something become underlying little We creative think have bit significantly, the sense. at difficult, increased rates it’s it.

valuation, look much We significantly it $X.X at higher. billion, would IFRS mean billion conservative, where on If is in and million the X.XX is place debt we we is I quite of $X.X and you I which portfolio, say, conservative, about got let’s billion above which carry syndicated value, about $XXX our portfolio $X.XX billion, where it’s obviously say. bought

be to to recap. there seems there so And room

we couple ago, bit something we look So, makes little again, of or to but a a to difficult something a going ago, continue months think are still sense month more where and at. than were we

Yes. year. that could I about add as to well talk this If let’s is

you we about homes. know, As up to X,XXX commitment talk our to buying

that really you the If of of year million this we provides this with another mathematically, in need to dividend shortfall year, portion that put AFFO are for fund $XX about we million. $XXX growth. another us million really looking our is our $XXX so equity after

our the us. a in cash, liquidity facilities unrestricted We for have position, and million great about we available credit $XXX are

dispositions a just all either. this easily of of any absorb plus that either capital go or we for to without to could these These having So, markets year. the do are

you at mentioned for to spots. portfolio am given you times the all all you upgrade applications then macroeconomic curious, Thank Okay. credit And several concerns? changed the Got quality it. credit XX,XXX I curious of I standards trying XXX for just the am if the that.

haven’t. really We No.

with have are we they think down XX% We are to the applicants. We between had. same currently We currently turned we keeping of program XX% strict. that pretty

moratoriums been that seeing hit, a that and the the beginning, We really had offices have and that. We we that and that, to country. We housing in our the very we have about And residents, underwrite the approach the we helpful. pay the from and centralized found COVID of hit been around so across have consistent all so process. underwriting within were propensity our of different laws we maniacal kind had of took So, we all our cared delinquency of all we to That collection little our a we hurt used use couldn’t we to it’s really living started back normal fair going we down bit, pretty normal start are practices. since to processes. come now rate markedly our we And are but going but good, with been It’s that with along, we changed XX% been see at how is we are pretty base. the We we resident and XX%. still and underwriting. that our have about all rate haven’t practices rent-to-income XX%, happy our really improving

Thank Okay. you.

KBW. comes Your Rahmani Jade from the next of question line with

open. now is line Your

in very Thank gap been has accept growth renter good, rent between there moderation turnover of of growth? leads, reflect could conversion in weakening to or such much. April new willingness versus since a ways, you demand any number either some leads, rent? from numbers a demand And there in in lease ratios asking sounded number secondly, rent but renewal is

change. There in has been no robust no. just remain are going more they were. we am stronger ways, trends is as anything, If first say, I the So, to Jade, where answer spring going the leasing and not some and question, season, if into robust,

rental been for-sale if So, say no market, you housing think the change the expensive. all. probably this, versus for-sale about I market will at never the market’s more

look go at if – it’s right. back you a let’s on basis, housing to the been XXXX, sorry XXXX price-to-income you If say more never expensive millennium, back to

back on We been affordable rent-to-income, XX% never XXXX. going For-sale a more talked been on it’s basis. affordable more expensive. rent-to-income Conversely, being about has never XX%, housing a housing never basis just price-to-income has rental a to been more

drive really in insatiable continue are we to position There So, the a business. to great demand. is

We have got pricing power.

as pushing We renewals are not. we responsibly be harder, that know. using are We can much you our

the the my And think what turnover, or X% a else So, people they They what fact are building the I market. go the good renewals, else. they go there is they they to and product giving And service. and in just around stay. like realize And that are self-governing. we the we they on turnover, in and X.X% no think they low we can we opinion, I look do anywhere When that deal are like getting around like the loss-to-lease. reflects they really and reason get they in are

we a no, running way is reflection of the turnover more think are the the we So, low business.

you. Thank

see wonder side, On I see how it. and you the supply I positives negatives, and

like very the XX% than mortgages a On large X.X%, to something move. market, less of home a existing rate have disincentive creating

On the class, issues as to I even in REITs the seems chain that lending money the And mortgage the other asset. for builders yet home hand, asset are be every chasing onset be that build-to-rent company of that in developing the stalling that as model. space supply. know might supply well

you how think So, and in that deliver developed do avalanche the inflow the homes an of market? about gets later or environment and suddenly there there where is an big newly year the chain picture relief to a supply is rental supply

roughly about because It’s homes year, on going homes, cap right, couple the of on our rates. existing are couple this, think eight driving buy build-to-rent. the that’s to been are homes, Well, the maybe major existing And impact we last I to has than are existing I just That going which today, homes. hitting this up been am difficult having if we growth, buy seven tighter. homes no home a in X% of years. never talk ever, last to to the before has to buy our out But of a that, what’s market, issue will really X,XXX that Andy of you has never X.X% until market I been over that are time including it our let say more years, think X,XXX about ability supply obviously

to want just that. clear I on So, be

considerably turn our better it gets us can it mean especially, higher higher growth Maybe, if probably rates, to buy said, loosen that’s is I see, allow rent cap It have little and looser, to allows that of be there as now market, with animal. to over any And I outpace it build-to-rent. mortgage for is to at if different home so the don’t a is think with Build-to-rent likely looser, the true happen over gets I because it’s you acquisitions. It why Yes. what lot market Jade a starts It don’t But I people flexible us. know helps I can to prices. is a will might we loosen us more gives for Andy, maybe stay maybe bit. get are time saying, more competition if an rates place. would agree if anything it I with opportunity, tight. the to market in tighter. you,

new would the number while supply on been Certainly. home chain has well, I retail you sales, as currently new delivery There and are pursuing add supplies historic of significant though, very delays. demand right. as as home at build-to-rent, increasing well have lows groups sales,

than So, right. forever in of Kind lows historic a month, terms of less both, all supply. supplies are

going part increase and will Our building increase large time over a or of a aircraft But over a while hundred go sense just more but we take to to normal to them homes business maybe do homes and a supply long following skyrocketing to a into do of that a there, back very couple supply. on gain there developing slowly, more we it’s it’s supplies we new And that before the too construction home historic this still acquire, development for think move so. to a to of from comes see think it it quite or probably lows. and through the like quickly. mobilize time, blocking tackling long little very latter those a homes. supply is and approvals amount year years more takes them that takes long turn come is takes an It’s and timelines will few online large work supply see time here, carrier, We quickly, it few the year. and it and of sites, required amount It to hundred a on this don’t then

early later want one just for to maybe supply you And homebuilding is loosening comment major year, supply the chain or labor. year chain, add talked one and next on Jade, have this more to but I that, about

Okay.

last all the immigration over the show delays just causing shortage United do of part that the of there windows appliances years or are up, in available due some if solved. lack the of is being even several massive in a So, to labor isn’t States that

years there in for about think so And of– the but a supply anytime major several before last see chain labor, still and where spite problem shortages, a was that demand we the don’t solved being new housing, soon. constraint in

Capital question comes MacLeod line from last Markets. BMO Stephen with the Your of today

Your line open. now is

the the you great infrastructure in have something that just you. you Thank Gary it morning also Good mentioned to you single-family the invested support to How one do I business, lot support and color, so many having with place you and can question existing thank platform. to relates you for had quite you. homes that without which infrastructure you to incrementally? guys built on add a have respect significant a and know think I

scalable, mean I the think we I could existing is right. the platform. platform very buy with

the does we platform, right. get tech-enabled scaled people but it, of of incredible component an need the terms to is what In operating got have technology,

more the then turn buy a And if lot homes, when So, remember, need those to buy supers nowadays, go techs and need homes, repair involves homes. and ultimately more you people which to you you renovation. to more of you those renovate oversee homes, you

But a our to are year. XX,XXX there is have that, platform So, would to the why team faster would invest in XX,XXX which to to the If probably and more and wanted on is acquire front, than go we to got, people continuing we we place X,XXX component, but we have hiring could say, homes faster a go to hire is X,XXX aggressively. be. where certainly I we real the significant people

XX,XXX. and market much probably on guidance, closer place. be based on we faster go I we our a to think given better we probably in people are and based more If markets environment in get could probably the to platform likely environment, capital will then X,XXX we were the capital

business. growth, question is either and your answers significant more for for we that you. hope and I growth believe way, less So, our But it’s growth again, that accretive

Yes.

Okay.

above So, more homes, cost you people managing the of and can technology it’s and the on platform you home it would blocking buying, specifically… real be have, sounds tackling that XX,XXX variable renovating is the support component like just the

technology [indiscernible], Even the right. is which we don’t buy pretty home, with site to buy right, impressive,

the under So, that contract, as renovate people. home requires common the soon the need have turn the home to someone requires right. home. send home got Then we people, to there a put Then to and inspect to standard service we that as home we a we

That is the not that requires needs actually be to scaled and All of that people. the it’s the appropriately. business, part hard of acquisitions,

had techs, much actually and issues time great in We the were was front great market, This on this people, last we front, year hire. we even either. a it– no year, tight the are hiring supply very and to on hiring have issues so tougher finding acquisitions no

you. Thank Great.

Thank you, Steve.

There are call time. will no the back over to Gary questions further at Residential. turn this Berman, Tricon CEO and I President of

with call in markets like participation. the QX we this Thank what results. you everybody. all on to look Thanks to look Emma. forward our to your discuss I thank you, speak again you We for would of seeing like August when

This concludes today’s conference call.

You may now disconnect.