Tricon Residential (TCN) 12 Aug 222022 Q2 Earnings call transcript

Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Tricon Residential's Second Quarter 2022 Analyst Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After the like to Managing [Operator Markets. now hand Director conference Capital Nowak, Instructions] I'd Wojtek to over today, your of speaker you. Thank ahead. go Please,

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

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

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

referring website. call, we can that this follow our through our a can by you During joining will to be directly presentation slide you webcast, access or

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

joining morning, us you, you thank Good for Wojtek. Thank everyone, and today.

performed strong through report and continuing uncertain July operating the and that through second some our I'm times, we with volatile happy navigate into August. fundamentals quarter, to well business As

two. share with slide the our me on from you Let quarter highlights of some

continue cylinders from is high-quality backdrop, demand on resilience all quarter. the continue of quarter results with homes. we benefit deliver to rental firing macroeconomic consistent our to middle-market after Sunbelt for business and strategy, First, our Despite the exceptional uncertain

XX% seeing year-over-year single-family And homes opportunities track. growth plan now on our of a Second, as rates. had remains stabilize, acquisitions. and proportionate cap by home we're prices to buy record NOI higher at quarter We grew rental

SFR operational had record and we another in excellent rent record our turnover, quarter growth. with strong high low near business, occupancy Third,

Next, minimal results performance to revenue our while advisory And private funds fee fund our meaningfully, the increased of near-term plans. by and ample at and low leverage achieved maturities we liquidity range, bolstered our end with these keeping target strong finally, fees. growth

of our on three. You can results headline a slide summary see

is metrics we'll In two extremely we business and achieved important to highlight. into businesses, performing milestones SFR dive like these quarter well, Our call. this our throughout fundraising I'd also the adjacent

JV Arizona core supply increased we million markets. new State our First, investment $XXX to program co-investment Tricon, closed This with successor in to Retirement which from build-to-rent million housing and we over three-year our a period. includes JV fund gradually $XXX extend the XX% System expect Sunbelt or

metrics Tricon's help and our reduce equity The projects. lowering CAD $XXX to sheet exposure commitment we Board capital built-to-core from increasing the while simultaneously CAD Canada an into restructured Canadian XXX to lower commitment development million. restructured joint with JV equity balance maintain from our million million all venture leverage billion, equity Investment total Pension Second, new $X.X structure, will XXX we to multifamily activities add Plan as

ESG ESG our annual four. quarter on the second report We sustainability publishing another slide front, and initiatives. expanding our to had Moving productive

Houston. we and XX% SFR smart STAR systems, to optionality a and the home headwind ability aim thermostats. own addressing first a made choice. for to the to assistance of of At footprint. including receive be a Johnson completed low-flow are our housing a build-to-rent options. environmental And residents, long-term HVAC ENERGY Grand deeply in either program, Tricon, payment upgrades we providing over payment including in $X,XXX newly allows community their in water residents constructed now which in towards net we are zero a We're appliances, qualifying committed also market-leading or X,XXX housing solution efficient Park, homes community energy-efficient water located solar our of shortage to to portfolio, down homes buy piloting to rooftop of we rent our rental in and significant America's announced home Central second, addressing our part First, as We've hot deploying fixtures a Master affordable Planned down also

to of some late, next few we've investors we rapidly given questions key been the the slides, getting environment. address from shifting the to move of we analysts want As and economic

slide financing In to X.X%. acquisition on about up. JV-X we just were X, over have whereas the March, acquisitions. in close financing securitization Clearly, rates at July, moved let's X%, First, at completed rates we talk

home from spread homes, prices, point a X.XX% buy financing home in homes allowed XX higher we very still accretive ago. be a deal an to seeing compared X,XXX have the earn we fees turn at at we're today, that and financing to in a to at effectively X.X% While to that done three enabled We're to brings times at XX multiple. times where our in negative home us on X% be compared moderation were closer to for multiple rates FFO the out we to we thought a from a This at which buy show buying change we price the typical to multiple this is would the point earn times July the We us underwriting of a will a single-family to earlier FFO rates. homes in from a impact to come cash rents going of year, and us acquisition current range has to capital. the months capital. higher XX that quarter increase XX which think of did buying interesting combination also use and rates prices or I nearly flow down recently, home, rates third-party given every price homes which positive have back cap contribution stable in managing to securitization our basis it'd same roughly can includes FFO

estate very fully to we're even and X.X% Looking our differently a interest at the of environment. buying homes and X.X% net a higher it much in nominal to including lens, rate rate real which a when to cap again at cap adjusted fee rate remains compelling income, of loaded X% or X.XX%

are slide is play; is So what's driving home cap or there rates two X, NOI the while denominator at you can prices see the on numerator moderating. factors higher? rising, As or

it's one have up NOI never affordable rents. X% On side, compared Market moved. year, with versus of rising to the higher rent to because that own more mortgage is home, change, rents even nationally a rates given high been probably were how last

more balance below now rate from of price our we a On to a markets making closing price the still pivoting opportunity since prices Average cooling. to premium over we in purchases. the the MLS find down attractive become list should see acquisition side, offering and cap are Clearly, even attractive is offers being perspective, ourselves in X.X% about other prices home for less at our year. our and April, and successful

our building sources blocks do and how turn of about the growth slide uses. funding see go plan? our Let's we to cash So to X

more homes our non-core which of growing and flow and US liquidity you homes. SFR a capital. $XXX growth by than also amount NOI same-home cash side, of through a a could left the can hand. at see we we growing have cash small driven credit We're on strong portfolio to value rapidly looking to have number lastly, unlock multifamily our portfolio revolving sell of a On the growth of opportunities significant facility of available and million provide And

our the of In over On the SFR of million $X investments remaining XXXX, cash side having about per about can sources growth our think we billion million plan have $XXX cash year slide, for you flow when about business, XXXX. see over we including of $XXX estimate through right If we growth extrapolating cash our planned in words, in medium and to plan businesses markets. equity don't rely have from sources our need the the on layering of compared adjacent years, period. term to two sufficient planned over capital growth and capital $XXX about the time and other half fund other to million same investments the we on

business a environment, Next in slide big recessionary our will fare we address on how X. is, question which

We unscathed declined as have came crash, some back, experience price XXXX impact spike. in and market. this we largely look When department during prices Houston oil the XXXX, out oil the of unemployment we the

our rental for remained see, the same you time rents resilience even in a past during pandemic, As stability our And and most model. market. business over expected proof business recently, of of spared illustrating the point period, improved, stable well the occupancy down Houston single-family another the X% average extremely can portfolio grew in during while subsequently our

slide question move to rising let's X to of the the is on long-term interest our Now outlook. rates impact of answer what

interest spoke perspective, higher a home longer-term our our As same we From it's has about significant I rates rates. more economics, of by mitigating results. the are driver higher buying at on are acquisition a earlier, which NOI a drag cap actually growth

FFO our to $X.XX we to is In into NOI NOI rates Wissam higher to the share what presentation target in to uncertain higher per comfortable is than short, our still So with expect attractive results. growth an order trending like same to thing get our achievable. now in XXXX I'd forecast, financial same-home and make discuss feel higher costs, hedge of to giving we're endpoint. NOI that, with $X.XX providing environment. is higher over long-term with to backup core Nice need financing out pass growth, today's we'll that growth factored indeed deliver the expected, we to

in We up an million. million Gary, such our to XX% support Core to to increase cushion with dividend fair rental providing value you, with up quarter was on AFFO far. from share our the was which And we of key financial to payout for XX% year-over-year. of $X.XX the and Core exceptional so quarterly Thank like was Tricon On FFO metrics successful thank morning, us slide was team per gains ample good for of includes AFFO this and XX% year-over-year, their another properties. continued summarize year-over-year XXX% $X.XX, ratio $XXX million, making share Net up income with I'd contribution per XX%. $XXX an year XX, everyone. operation, FFO results, a quarter. strong entire delivered $XX

share. and slide per to XX talk about of this core drivers move the FFO Let's

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

along year fees from and property legacy multi-family to comp strong SFR development, asset fees driven from adjacent incremental decrease a over compared for ventures from FFO in sale the fees by per XXX% past last added and lower of investments, Our management In by created contributions with US $X.XX FFO in increased which was in This versus year. newly performance the from very FFO, residential strong year-over-year share. housing businesses, results our prior the year. residential reflect joint

expense debt we down side, effective efficiency. was interest for stable down travel increased up slightly around keeping SOX while on to from And On interest more corporate we was we growth as associated the corporate costs to from US them as and as stay the year. QX, overhead Of actually proportion also expenses balance, focus sequentially and often. our last expenses note, this we the included program. last compared listing year, staffed overhead of driving reduce our level, to overhead compliance with started This expect our and rates X%

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

to of overhead to corporate and and managing Slide The to large revenue expenses. XX allow portion our a overhead scale fee faster, our fees earn offset capital operational turn we us Let's improve discuss by efficiency. third-party efficiency our

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

am is I quarter Let's profile ended now near-term that debt happy times our at XX. to our net turn debt report we X.X Slide proportionate just to below debt on targets. EBITDA, to the which

rates having the note short-term exposure is we which we floating largely our debt of near-term our have interest and here important that that rate closer environment X.XX% of average benchmark We X.X% that maturities. to fixed how limit to since acquire weighted of to QX, also related probably homes. understand our our significantly rates near-term floating to maturities the Nonetheless, have we and I at will today. proactive of majority use moved you debt QX, at aim have and rate rates. to be minimal and by up see warehouse rate facilities as rising is XX% it do debt to it's with We

So Slide we're what highlight on we XX, on wanted to today. working

XXXX that the extending eliminate will XXXX. That and million refinancing our exposures. see in and term of First, loan process we're you'll any $XXX to maturities refinancing

Admittedly, at in and was refinanced but we life at X.XX%. of fixed extended million rate joint the venture. the Second, JV of high aim over pay, of a $XXX to an attractive to rate XXXX July, maturing debt in our this rate proportionate warehouse securitization via a blend we

Sometimes at time. we focused higher we'll rates, on we'll from are rates and finance and average lower sometimes our over rate our finance weighted but improving

Gary over floating SFR rate with to deal want to we time, SFR, be today refinanced our are used debt are our loans X%. that Direct remind JVX And are finally, permanent stabilized. once Homebuilder expected same facilities As and to you closer be mentioned, long-term that to fund acquisitions, which would

permanent And debt profile are so constantly our we extending with financing.

the XX better This to increase trends Moving an expected. projected and to points same-home at updated driven our guidance by growth pleased growth I'm XXXX, the Slide for bit previously which than expenses by midpoint. basis is stronger includes on NOI XX. a tracking revenue increase present than

are future potential offset interest We per trends are guidance being reiterating share our the same-home FFO higher by as expense. strong

a rate XX, We part at don't three-year leverage on XX% growing compounded recurring On long-term as but such to homes, include share this debt to our EBITDA stable reiterating SFR targets our three are The FFO eight our core well we nine expect and also XX,XXX to overhead of to Slide be at our are track acquire exceed targets performance we dashboard. over as of that overhead target. per XXXX our covered improving revenue. portfolio efficiency maintaining XX% annual expanding of years, by net will homes, times to our fee X,XXX

occurred a target to give rates headwind growth And a is Santa our our to more Moreover, quarter, in Christmas for target, Officer. seeing Tricon Chief call over was insight increasing will into the provide own Baldridge, the comfortable be set with outlook. mind. he are buffer, environment drivers rate I'll of the us the and Operating NOI very with interest FFO July, NOI turn Kevin this we which rising Although growth in this that the celebrated makes strong if also Claus.

morning, everyone. Thank Wissam. Good you very much,

continue Let our momentum residents, me of welcome excellence bar I more start grow beat. the keep be a saying that fabulous they out commitment team's a unwavering and new service missing we job and to the continue homes our and by raising how quarter. as to resident our teams operational to have done quarter without company, after business our amazed operations at supporting add

the MLS across start out XX homes QX growth acquired with last Now compare our of When our Slide homes let's year, These aggregate acquired a strategy. X,XXX on homebuilders target to price X,XXX while XX. homes. of average newer year-to-date, grown vintage to in over diversified X,XXX middle XX,XXX are our we homes bringing In both firmly we are acquisition purchased remaining of portfolio new well homes and gradually rent buying almost we portfolio markets. a true our which almost our track on record With homes by include share. portfolio as alone, we've XX% to as market primary directly from towards and together up average the

The compared same-home NOI, solid second XX.X% by aspect our of last which a is growth to expanded year.

the into dig components. Let's

a average by occupancy X.X% As gains. in basis you same-home in growth can rents increase and points XX, was of revenue see on Slide XX driven X.X%

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

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

saw moved blended are trends growth over an X% continuation rent into seen demand entire a dynamics the These the my in at occupancy we strong with we July, of XX.X%. As a and rent absolute dream and I’ve best high career.

to portfolio We loss-to-lease of drive continue demand expect strong that estimated and XX% beyond. rent an through robust along growth XXXX will this, as and with about such

pre-pandemic next few to and Our been over X% early around sub-X% expense of and reverting has it months X.X% bad debt levels the see we past trending year. by

as Finally, from see out per year last other fees ancillary a late services as XX% of couple telecom pandemic. to the ancillary smart revenue path We enhance them services. also insurance, after putting discounted home like by on to introduce over cleaning we such programs technology revenue grew the roll value-add renters years during the partnerships, as and resident resumed services or out XX% next over other new continue increasing the rolled current pause and and about home panels, we to home solar experience,

same to to Let's expenses. slide turn discuss now XX home

growth of reflecting year, same in appreciation up significant from Our home X.X% expense going XX.X% price driven property markets. our last taxes was by home

were the On down other repairs expenses hand, this quarter. and maintenance

points XXX XX.X%, last our as near of customer focus an our cost bias a related service. Turnover last Although repair freeze. to thanks year the expense against portfolio turnover was down also record the activity occupancy order to year, low considerably by as comp decreased from on inflation rate Texas basis and in experienced post-pandemic, which work higher costs well had $XXX,XXX we easier as included to

with work tenures during turn and more their given hours more the a costs in longer homes people done the pandemic. extensive on capitalized resident also spending We being proportion of higher homes

our property year, offset compared the is wherever seeing on by operational demand. the the increased the possible. experience efficiencies control. scale from last expense future procurement being of we're and see to remains cost we focus national our we're loans as management growth inflation this managing the a In inflationary side, somewhat labor and through program, while driving opportunity, On creating more benefits meet leveraging market this hiring all improvements environment, expenses although making tighter resident the technology, that includes to can best we This and XX% general

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

highlight XX% for the believe We or business. two slide sheet, that slide supercharge businesses, a process, represent a These XX we could worth Should located time, businesses want would our and pay adjacent want to Kevin. sale a Canadian account XX. our in from in of Thank multifamily ultimately simplify you, on assets of potential balance times X% SFR about to include our I growth. our use meaningful represent and value, proceeds be our $X our they with to the high source debt these housing to which and we quality and carry grow over our robust upside monetize key a Sun built-to-core cash few portfolio, legacy on business, shareholders. flow down benefiting billion IFRS market, of for for leave takeaways you nearly we a value These assets. interest Belt SFR are all multifamily and in housing portfolio the still

and difficult to designed uncertain times. is we First, in perform these good our and it defensive well but resilient, and times, it's bad was are know business

results to are but our through could believe place the over meaningful between we you can that the Next, that is think if into demand every and that out, Kevin more We performance XX,XXX disconnect in confidence. unmatched. communities impacting through is now drive in also to single call living into who We for coupled a valuations. back by pass joined now stable. I finally, take care, market of acknowledge questions. we lives with Andrew our platform, day. people outlook. technology business, take I’ll tailwinds an they that our should remain shareholders. amazing positively heart fundamentals will strong of thank right We tend homes each to answer our and at you solid which there's serving NAV in rock residents changed to same-home but economic team favorable confident growing public we strong portfolio, appreciation David housing hasn't to leave and in questions. Wissam, trends our Carmody operating know translate our be years mission us of moment put to what rates To The industry look our Ellenzweig, compassion close truly and the to environment, fluctuate, for time, grow our to cap breathes interest would uncertain Jon have and And lives an Joyner I be rates Andy and and and come, with to incredible property like

[Operator you. Thank first Instructions] question from Chandni We'll take Sachs. Goldman with Luthra our

is open. now line Your

you And Good for morning. taking questions. Hi. thank my

July? then you acceleration? So could into sequentially? talk some that up in obviously July, some occupancy? what perhaps could accelerated, behind there? And what's throw then, picked what's lapping the you in you color And are you on XQ? Occupancy from coming on drivers trends but going revenue trends insight slowed obviously, So could same-store And your about throw

and trends. about Good Go ahead, to morning, to Kevin. Kevin over Hi. Chandni. to it occupancy I'm hand going talk leasing

of Sure. year. is and Thank time moving people I are And demand you. make are strength -- the in are being right? this happy decisions continued the households is are formed, also we're to kids Yeah, -- season mean, strongest in people business, are because seeing their this so the school. we're people when

picking and expiring, typically, we're of up lot And when so demand. leases a is a this are time

And a occupancy strong rents season. And at try And What by -- pricing looking our are? this occupancies growth. the that's to they're what demand management very have to team the So we Where is constantly the and are? between and constantly the rent availabilities and market. sophisticated, we're revenue are? we playing maximize constantly

you And sweet play know, done able a while call to of And zone push we've zone. to we'll and we rents kind in been of job. for think up. the XX% play to I with we're occupancy that what we in fabulous they've XX.X%

so XX% push quarter, that so and to We'll to try to a you'll bit we allowed this that a And see XX.X% to rates little bit keep high-end us reached higher. quarter-to-quarter. past little between, the

So I think stay of to in forward. we'll back again, lower get range that XX.X% into course But seasonality high as of we're stay see same then occupancy down going the in trying And QX. range.

And…

And that get back. Go ahead.

Please go to July. ahead. going I was say

So XX% spot. to occupancy XX% able for July, rents. it's our again, really that like within were And to range. isn't the staying We sweet push

As you'll rent above see, our blended grew to growth X%.

playing And it's rents occupancy. with so and

that occupancy at is in the we even range So play with XX% and rents. which though occupancy suite where

there last to what are year? is us lapping? July a was what way tell So for Like you you

think back seen we've activity. out out have going stronger having come moving trends. Well, of normal just I to started People It the started and pandemic, again.

normal And overall appreciably, occupancy so XX% the grown our rents that have portfolio seen than our has a last over as website portfolio started in grown. like had our life. back grown, leasing We've the out have to higher been visits over our XXX% total have increased growth. seeing people we're we've has going so And lot profits year, for demands

in been XXX%. also pandemic given any We're leads those new kind XX,XXX on in trends we've property since Property So has of the tours of like getting are -- X,XXX demand month. strong upwards mirror. seen available are per lease homes rearview the very month

households household having lot a We've just got and especially seen pushed climb. they're So into forming of rates formations of with lot and SFR. are a now They millennials. we've interest getting

hitting a that in its up are lot July. So tailwinds of we've showing got and

enthused pretty we're So

where are July. at Chandni, a all always levels. I QX July, into down would go you, we are XX% standpoint, at levels. XX.X%, in The level. a from in and trends XX at But clear record record believe that back metrics can It's occupancy it's in my The tell lease at was were look at back we July it's it's even level. these bps. I record dipped record even still new also at though at

off So we they're from leasing don't the Charlotte Atlanta, in numbers growth markets and have at we're of especially in And of levels. but Southeast trends, new Colombia. record sequential all the the XXXX, like in July seeing top

you. can Thank And you contextualize going XXXX? that perfect. earn-in ways That's any into

hear Sorry, I question, the earnings? didn't

embedded growth The

to sequential I a the Yeah. the higher loss range. that. guiding in Oh, we is mean, – in probably loss I think loss markets, tends little think and conservatively I lease the debate I think in there's of who said, seen, But we've Florida, got people a XX% strongest it's we year We've Southeast, XX%. we're think rent occupancy Southeast on into I for as and – it's to occupancy, about lease. And blended the growth. internally. than think that growth. Western the still bit we're the holding for into I to later time, mean, some growth the right? stronger Texas All be weaker. mean, of them because I confident mean, quite think in the rent I outlook loss But sustainable because self-govern are we're this the rent and Remember, we that as think But with look I overall, to I renewals. of blended back XXXX, lease, all growth, trends on of these very some Indianapolis

Fair enough. Thank you.

Yeah. XX sometimes the renewals another room just we our XX out rents, to to still days add points that still takes at I'll have and time on higher, move just to we because our growth, renewal days. rent cap that basis we are quickly, XX it to grow those very have least

quarter, occupancy I you'll the don't whole was renewal with for year, the so our in million. XX.X%. have July to rent And our future continue QX see was grow $XX.X but me, months. last And of in it

All right.

with we'll RBC Markets. Capital Next, Brad go Heffern to

line Your now open. is

to you Yeah. better Obviously, can in and a down not decision you've acquisition significant for through Thanks. I road? do public curtail Good that pace peers wait everyone. pretty walk guess, your further had way. potentially morning, the opportunities the

you mean, Hi, never a supply for demand morning. you've is say been would to that's cost I much we're I we're no first environment I mortgage like homes, an in. would rates. product this rent Good environment on higher got I with think as cost more, insatiable our why to essentially the mean, the versus has better, we've Brad. the – home own wouldn't that the where seen Yeah. I Well, seeing say question, And the obviously, right? shelf,

our So more the have our We for demand don't or need top peers. meet product. of supply of to feel that, from residents. demand we there's to And that consumers scale on insatiable homes we

grow. And so continue operationally, we think sense it to to makes

to we there's continue reasons want definitely to grow. operational So,

I estate it's also fundamental think from a incredibly perspective, real compelling.

have and third we over finance of party of to to to points able it's rates to to year, been XX basis the the capital that, maybe our we bps acquisition over and today, cap about, and in talked we On And quickly. even course months, we going rates, increase top where with flex trends compared the those the earn rates fees. can ability those prices able we've cap And adjust fact, we think we're another attractive. XX, be last rents. XX cap with we're as to through home normal maybe the seeing three those think We with increase manage TriAD those this quickly to very by probably program

cap again, attractive. adjusted which, our finance we that remains today so to range, to And can in very, X.X% very rates are where X% compared

of some So, differences. those are the

on absolutely as capital amount it's that manage they but third I get, get peers accretion keep party to for we think, the we us do. don't, Maybe Our accretive growing. don't same same of the

the above have bit We this a that. will back guiding say We to though, in X,XXX year. were I held year early little

half, in we're homes in the half the of first going X,XXX, year. homes which we X,XXX the X,XXX second Now means hit think to

a market, is capital. internal bit plan, growth. able capital do just reflects of We equity how So much our not be to our have rely like a really want that the And slowdown. We that our of the markets. don't we on capital fund order own little capital to to in cost

be have So that. manage we to able to

we so guidance but we Brad, down are XXXX. sticking overall a to bit, slowing little are for the And

for more set terms channel? or you your a that. for acquisitions, at the sure not, I'm opportunity from traditional but are partners in prepared not NOI homes? Okay. set of to And shifted opportunity said Got building greater home then have And if it. you you've you all remarks newer the seeing versus the in Thank

it and mean Jon. I hand I'll start Yes. over then, to I'll

a thing stopped buoyant. your one right? question. is it's would about it, Just earlier you be not not back just clear we if to I thing to what done going say And by the said, think know going difficult mean, But we're to if future right? you I very we're buying why that, other onset want to one just market buying, say I timer, the I renovate mean, how home. no of way, pandemic, stop certainty we to We had before. at even the the the like. we've didn't because that look was

we're to So on market But buy we want back why why But question never afraid to keep compelling. of later. if to this stop. going it's not timing, stop,

let's was homes, growth, right? to -- where and place So a up you we're rate XX% year, to now have giving rate, would you buying nominal say, would X.X% back cap been have NOI buy anyway. you a If back same X% could what cap been the at you go

we Direct, Direct. Homebuilder in are bit of Homebuilder we're little want through XX% you in XX% time respect of home at an speed think time, seeing We're channel home new any the buying we're a quarter's financing, might give acquisitions, our process JVX. environment to point our And don't down it's call color on With Jon, ongoing this that so up are an and what about what just may change continuously and slow or of through capital. that And we buying maybe new we depending cost about to through obviously, to time. from but

Yes, for -- faster what sure. their obviously And side, are looking is Brad, on home a well. the reduction. price new home quarterly targets little to Homebuilders as hit price home bit more seeing we're

bit who So reprice might faster than they're their be a little home. average to the reselling person

we've in that some side, upwards continue. across XX%. in a we're been able little rate it's to perspective, will have new actually what seeing expansion expand about that of from when have expect instances, been that for on markets, talk reduced various buy the cap listed XXX,XXX and Anecdotally, by, faster to scattered home been the bit past a might home we So you

to and sales we're homes thought capitulation kind where can realize, new Otherwise, So little really they that acquisition how looking home wholesale and starting they at early had or meet they eight and to reduction are seeing a SFR be community a the new we're they they move they're well, bit those realizing selling as more that launch or on the can or more see of side, and year, side stated that XX objectives. there's their this on price channel next started, builders communities into. have this they'd later month, might homes year

in largest eight let's have rental top that are more homebuilders that now. acquisitions in next interested later early XX partnering more might the We're XX single-family much in to builders say, and with getting or disinterested US ago from, more way operators inquiries owner been So months the should year. XX year result inbound this

everyone. you, Thank Okay.

Morgan we'll to go Kramer with Adam Stanley. Next,

Your line is now open.

for Thanks guys. all the Hey, taking doing and you're well. hope question

in XX% and maybe the year-over-year Just through of and and line, lines, the of of kind for the of the wanted just increase bit side. of kind positives on expense some us but was little think, in of kind Maybe some I thinking from tax turnover kind on maybe drill here what expense comp. that property I kind on recognize the half lower the there here? line drilling with you're back us some the maybe I walking walk maybe to other a mean, the just turnover

well. you're Adam, I hope doing

seeing and suck So So, higher. can't in hand not home XX%, can't price we largely one is mean, on mean, I right? and significantly higher come I blow. prepared assessments they're take appreciation what I see mean you we're the to up be assessment.

number that accrued in QX. X% where from. across that's year, It's the assessments a in the to board. comes is XX% we under last increase About fact So related the

And the current year, about gets at to expecting, time, we're us to So XX%. about that for the XX%. the be of balance

I say get to lower millage are the in see what Now mark that's it's largely on be our able those happens Mark. key we'll bills, question rates, tax question, haven't assessment. we'll because we And real September, October. profile, the bills expense would to the than one the then tax the got a

be this balance to There be or XX%, But want potentially conservative, in municipalities to there the we've see So whether has In but upside. not. assuming past, the at received could strike in some point past. been the we'll also we're rebates. contested and time,

the And makes rate on debt. acquisitions, then, Got on acquisition sense. interest a it. of kind That just little future on

through and of maybe maybe it the through, the expense Looking in us kind of just raise the at and I homes and the guys assumptions today. it's X% out was Am to Maybe new buy. -- give kind -- X.X%, rate, debt would kind assuming a be at or you of that X% remainder given of would July that slide just like were that the year of at breakdown maybe the a debt kind helpful of five on of, you the for think and walk of I be next you're provide today correctly the batch implications. go that interest reading really kind kind kind looks deck the take, debt if walk of that, that you -- that it us

for stable were acquisition market as deal. when next And But, XX. or financing, it in several today program another it's now our very the out -- we and you'll we the deal X, so our around mentioned, did flexible. and moved. we peaked tail any do expect we Again, far, we're quarters. X, a bit, go come well maybe Yes, the Gary assuming the to Thanks we're obviously, It has stay question, pretty over Adam. little so Yes. to we that as be as if of type securitization

we is X, range the quarters. to it like the acquisitions we'll we're the market over really think to move But several significantly if X look expecting in at So going higher, to again. XX next be

there's there's were now significantly. the That offerings, widened of in when the his we acceptance rate thing periods is going but that to there really market about were is. opened thing time. type top back deals. other Yes. add I or spread. lower have And And We -- as it was spreads unfortunate, is cut I one more it at then single-family to blended rates. that to tick Adam, mean, think those that to to us talk at in on the the Sam they're point where don't we of finance rates prepared at up spreads that about I others for But takes got type right? we I and SFR they the securitization half. was XXXX, where XXXX. X.X the rental these I look what and be finance the higher said and in And swaps. XXXX is that mean at where remarks, the think it as -- would did was CMBS only mean, And I last benchmark debt in and deal, And back they in $XXX, deal, spreads, the a XXXX

significant see markets. can dislocation you there's So in pretty some the debt

better not see ultimately we stabilize we we through get as longer-term of so spreads. see but also that, kind only we rates, And lower will hopefully, think and benchmark

So to just you give that's little more into a insight the market.

you Gary helpful, one, guys. if and Wissam. last maybe really may. That's And just Thank a I

little Any kind Just the guys effort robust as whether maybe the time to maybe maybe by an of capture guess, thought self-imposed the XX%, on I higher. have to renewals, kind of cap renewal? renewal to you guys really the lease, of rate the of bit capital kind -- kind of can, to shorter loss raising, that loss of in as raising lease of a even as kind much have, frame a you you it's the make

the But later wage obviously, surveys. a We'll the growth this be to for in X.X% X%. catch there's up that metrics next through keep thing, talked inflation about number X% little year. see look of to the do -- is we're bit in this, different Kevin rate to will cap. to key that but to going our that wage that all We're the We reevaluate No. of year. kind year will how going determine numbers. X.X% still of We how at flow to to cap stick a

remember, incredibly striking through And which balance. first focus is when we're And mark-to-market. resident back lease important. we can we that And the our people so the ultimately, business, to we'll have running we a capture we think to know loss on approach

be to we should So because portfolio. a rent if the better, built we've the lease loss future, able in slows up little to growth got down the bit do in

it. Great. Appreciate Thanks again for the time guys.

Thank you.

go to Rahmani we'll with KBW. Jade Next

now line Your open. is

Thank Yes. much. you very

now. picture to analyze inventory think right I supply and is complex somewhat the

hand, in the low sharply and for trends On historical are continuing to relative XXXX, homes but still they up increase. one are sale listed to

of have addition, homebuilders the In the the backlogs forestalled market. yet very high delivery into has inventory supply the chain

on basis, in And so a capita supply is the new as multi-family high under then increase. period, sale finally, is And construction both looking not XXXX homes and going were to is high, but at it as extremely we and for homes per especially single-family high.

So release, in in noticed you said the supply. your housing commentary, tight relatively I noted especially in press -- your I

supply now? overall right picture your view what's So of the

a let's pieces. unpack try to a are lot answer, tight. That's but of there moving quick because it, Relatively

of listings all, first the new our in actually down about XX% year-over-year. are So, markets,

we've as So tight as that's and by not it. a that's ever story -- that's -- seen the way,

the list a taking for and compression listed, they But think down So, up rates them and their to people about they that it, that are to sense are because keep the being to when off year-over-year homes. homes They're going have, listings almost move to XX% and have way sell. doubled you really new going when longer mortgage market, makes of that listings. leads aren't new

and of that sellers increasing the market power equation. days the have. used to The is pricing other that's same they the don't on So, side have

seeing moderation are in prices the slight a from we peak. So, home

or list, the having ago, were say, X% in said we above mean, past, to three months remarks, As two make say, buy really our or above in let's to or offers list. I X% we

Now, acceptance still our same rate and can a list at the make below discount offers offer. on get we

which lot month our market a month, supply to the months the from Jade, moderating a is is of say, half and let's absurdly a months market, today. in about Sunbelt half in and of So, low the about gone has three ago, markets

yes, in So, in resale used the was supply about secondary but the supply Five about five extremely one the market increasing, supply, we're months. market remains and to and today. think We tight. a of a is that balanced months the month

today, If watching. see bears today, this prices. is as then up, market quickly. you're move It it of we But on continues is to pressure moving say speak So, going to we as that more tight. would the

builders of new are say side, -- today they the half probably a few last where yes, quite there sales I On many home would July. were are builders or

up. So, the they're cancellation in there to There's so pressure. the reason match is referring specs. to. There's than builders and ever seeing spec what rates they this trying were more moving some more And the would was build that's probably cost, more are environment, always you're inflationary inventory spec there pricing inventory was

why little dislocation, post-GFC, advantage is channel. fund excited they're be tight, to we're opportunities, opportunities. being we're wide have might to take of the likely nothing opportunities unload But there see also going widespread not short-term bit direct and is a to homebuilder like to think and And in distress. new now market about distress. our and going on a opportunity today will that's so future for an in ultimately specs, be This but development we of that's don't able the lead whole to those us, to It going raise right,

wouldn't Okay. the sheets is all good structure balance distress -- And shape anticipate primarily also the and rate very Yes, are widespread mortgage fixed in the rate. of that nature nearly because I sense. make does fixed

going So, there defaults by a simply be isn't cascade increases. of rate driven to just

below you of treasury you last improvement? seen average MLS stabilization X% In concert that rates, on know of just market in environment, in the based dipping impact April. with current mortgage down any in back recent terms on the the I cited weeks, since the Have X.X% the dip few price closing

significantly where were, say, like still X down still they're let's cancellation from, let's to we're homes. have rates mean, sales sticker haven't. seeing moved a ago Xs, though mortgage still that They're lower we're Because, higher, say, higher we I consumers down No, months for -- lower and high. are they've six and right? compared pausing, year they to really to rates So, shock. still new seeing through even

Thank How just release that through potential asset time you. Is And either assume sale lastly project? to correct any around businesses. for or that adjacent is the is frame with near-term or US of on recapitalization refinancing that capital most timing? the multifamily realistic the it

is answer short yes. the mean, I Yes.

Your timing. I give this any assumption But at you more around correct. point, is can't, clarity

Thanks for question. the

go to Tal National Woolley with Bank we'll Next, Financial.

open. Your line is

morning, Good everybody.

Hi Tal.

benefits actually Just JV. talk a the you can us Was restructuring what If bit you with will on there? be. genesis wanted giving by color driven you appreciate transaction? us what about if a I'm was little can start just of that you I the that you the CPP wondering to think the or more for the client? give by color bit little some

use is but out construction you capital. out financing, -- between much you the say right right? want I I was us, nearly by that public it put it really great to need we're our valuations now I reason. get I market put that. private market the think dichotomy don't we're the as capital, a we illustrates, more and it all This market the wish driven mean, really by is Yes. they And because when idea, valuations. investors And mean what seeing seeing I private to was in to driven from don't think, really could you it's

us to put capital. structure. we and capital don't more way why came this make said, CPP can We equity hey, So an all out

about volatility have our in and where the is a it the in restructured fees. to don't market. co-investment way it's lower worry neutral And You debt was

take in extension, and advantage we're State about ready let's and a some And same as opportunities. look, a And but will to Arizona we term so of for really well, There now, an great thought, all, it. came get go thing, this said, be is dislocation might fun long all rent. deal, I us let's to bullish build

seeing side. the we're what private that's on So fund

debt well, assuming. obviously if road, you I'm further you down it could stable point market And the look the decide as that -- to at at refinance out, can can that to

debt, on Yes. basis, that do, competitive flexibility. built an It's of lined go comfortable we've looked to up process, projects these we're us significant these got the in let's and all I we've gives all all be you We real mean, dealing but significant government ways. to as this capital are a to equity. We development in also at funded have to institutional an with it absolutely be it know, all say, but products able advantage amounts we're equity be the both untraditional. capitalizing can where say -- with

Got third-party fundraising. then on a just it. little And bit more

in approach Just of more the volatility to how is work? to any are raising you from capital all put with it impact capital, third-party market, seeing partners the you demand impacting or on

have an where uncertainty and talked funds creates of the duration just two private what because in no inflationary lease. the how residential and right? probably the launching inflation private environment, mean beds you TPaaS build-to-rent vehicle. less quarter, really they pudding of have some this the our preference residential of about and short-term have more even demand announcements for for the would -- interest in I the shed about investors. of It's strategies not. I think I say We're environment to and next significant seeing proof the about and We of because preference Obviously, some private industrial, restructure beds these CPP protection. a longer in I call talked investors We're again, in duration industrial. from this in the JV we cases, leases, the which X, past

to it in buy feel very -- we funds homes. for residential, to single-family never higher ultimately it JVX has has able also when well and go get demand homebuilder really outlook. to So bodes from then launch And then direct we successor us be and been through confident been our keeps investors. And in never private

as rent can just us approach a of when where per you Toronto then think lease-up that you're would where Taylor and foot Okay. land, sense West And for relative to proforma on was the to the underwriting? phase you in blend give square start you now and here,

Sure. Yes.

So, I we earlier. think were joking just mean, this I about

where at seen We're our have have I in no got the if Taylor, to bedrooms, think today. I on Toronto, think hand through growth rental last Block of the months. sale forward and to underwriting front $X close of is leases the kind building then market which square It's per flows we've sign that over foot literally because we've deed been, even would to don't to of vacant vacancy this -- one later we And are several one unit in knee on all we the today, which obviously, year. were now the massively the that a we signing the is staggering purpose-built ahead lease-up. to way starting X fast where

the of bit yield a we're we is we cost taking in trended a side, our to think, of or revenue have projects, And at more little that complete I So than on to a but these cost think mean offset the revenue looking you'd to growth. going Taylor I now add, longer we all So cost little the creep, we're seen at little there's be seen right closer I but me should rent it's -- Andrew, bit at bit anything above the upfront, we've right? looking development by a creep, be lock projections, think tell I if X%. but but

you'd on looking really Anything that's where rents add? good today. are So based

our walked XX Yes, we're this a that about call, it's advance of would at they getting I were in itself. day sharing Andrew inquiries speaking. and by just marketing group add leasing

meaningful in very So into certainly we'll right these be Toronto, I demand in back way environment. has a and projects come think the delivering

at I more just the lastly, little what U.S. believe. the a of closely? government And federal anything, obviously, on to could building least on a the hearing was starts X if its front, examine What's industry your bit bit X -- Okay. little weeks congressional sort as regulatory be then there ago, the examine sense to

to they that The when we're much class, about congressional short-term to environment in out kind mean conclusive to for we any of to home seem this corporate for did do, be from still it corporate there's of right? an this action. to and citizen beneficial think coming that's we seem take or like an our When live show and less better it that see them the away. they go rental where meeting today, care that's residents politicians we or be business. the more philosophy. can single-family see is an asset moderate going That's more start where compared in emotional home lead inflation, our And into It's get and is going think in they not manage and our best prices our I when all landlord, take flow, employees, best And way that and way think rents, always we're lot. we with. environment we to that's not to is the both just matter an and higher you're industry to can still a evolved is, with higher housing it's to get something our And obviously attention early inquiries hopefully, not We to much much to have indicate its and lot we other like would is attract ebb perspective, that industries, partner infancy. prices, now. it's -- it's to going did the be industry don't its learned of industry example. to they I going those our the can by business, lead overtime, hearings that is our from days. investors a incredibly But renters. for that. to in into best great noise, hearings governments to the But to it's the of still better And of residents. been so We care And it's are going less

federal all regulatory likely to thinking kind to the be seem more would to that when at about level local point that to level changes overall, more more were me it if have be just that these some it impact align level, of And would would there I'm changes likely like at of opposed as government or levels state government some and of things? sort of to you,

Yeah. more I mean pro is in, California. be agree. forms more over business. would that pressure the to be I there It obviously level. probably rent time, of at much face were most could agree. some of mean we'll say, I The we control. much tends let's libertarian Sunbelt obviously local be I would the

less there, buying pressure of homes. there which want renting is prevent from to communities, those or see we risk homes So but may or HOAs

in successful is mitigate been NRHC having successful having to block been been would adult that's successful. residents of has lobby combat legislation and we'll So that think date discriminatory HOAs where We've that or some the legislation out that. created to powers some industry states in we've renters. The pressure. very see that, of to We actually

going it's So have we're to -- something but locally. fight to

everyone. Thanks Great. Okay.

you do add to something? Kevin, want

And we're mentioned be our -- and have month. Yeah. a the local National to you in will been first going kickoff very Council, going there's be NRHC, Quickly, Charlotte, Home the to Rental start local next at factor active that levels. they

of really the level initiative us And the state a there's so council all active through go that NRHC lot really for tell to a city that. of the to are needs that prepping very mayors now talk of happen. amongst story. all of the right to education And to our side the men, part them to we're There's

our active role. see the Tricon first also industry We'll sure, us and a but You'll for take NRHC. through more

Thanks, great. That's Okay. everyone.

Thanks, Tal.

Markets. Capital BMO with MacLeod Stephen to go we'll Next,

Your open. line is

guys. Hey,

Hey, Steve.

far. color call the great of so Lots on Hi.

follow a with of have my two. up but been So questions answered, I lot just to wanted

of Gary, I NOI higher I by then of prepared just is confirm, SFR almost new geography? wanted committed sort a the that The that's predicated first And targets underwritten, secondly, sort JV saying build-to-rent where one rates. fully it you your from just differs are being to the that or bit JV, current can you in about think were if remarks, little talk reflecting focused, your

just wanted to pose you So sensitivity. some around potential could color I if -- downside any

Yes.

mean, I in. a I development an probably diversity, more think So what has bit Andy, diversity venture or I to focused -- right and program, So and XX we'd mean, you're But in on And for buying I and an the see we to been build-to-rent or think, from we're X right? California call T we're I think market. T Texas. on acquisition MLS for some past largely success past like X, in perspective, think welcome looking -- chime I Jon on little more our now,

-- into the see rates increasing financing and that. We have and we'd taking we time ability more development yield We're So markets, -- prices. to is market diversify see are targets. The are little dislocation some we're little land we're our lower land Those to X%, XX given closer like where a of to there's there. those obviously bit our market. bit land to now think going of the in a

talked that's or one is should probably pause So were slower. a market around about uncertainty again, we to continuing with go or where you underwrite development, whenever we acquisition the the MLS how there's development is

on take positive acquisitions take financing. actually on makes those let's approach, sense. an we that on We're because time. the to development so But going let's And market, where spreads getting our keep

do for months. down, come long-term very done we development So we prices think a to to think which in But time, settle, the is last construction couple much massive first we're the start we're obviously, to over quarter. we and not better prices we undersupply. next see of get as yields down, starting going much come haven't see may maybe And the we land

great So be to able deliver more a that's build-to-rent. opportunity to

else. anything So

good. we're Okay,

on existing then sensitivity and are gains expense, debt increase right, the and the on interest the of NOI So that on the in offsetting debt. interest we're new expense, the what both -- outlook, is some longer-term really, seeing

were $X.XX higher, to the to $X.XX XXX of same kind growth NOI hit of X% points target say, in get the with, we that rates growth in really NOI about need hit we're place. order basis to it to to order of assuming in going X%, let's So now so past, interest to

NOI. But hedge. a and you little So NOI bit interest environment to growth hopefully, in a of really now interesting a higher with offset growth used that an -- we're right gives is insight. being higher expense is actually

helpful. That's Yes. really Gary. Thanks,

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

David. all the you, our with QX your November to participation. We again of speaking you results I'd discuss thank call for Thank like to forward to in look you on

This concludes call. conference today's

You disconnect. may now