Tricon Residential (TCN) 9 Nov 222022 Q3 Earnings call transcript

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

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

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

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

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

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

welcome, Thank everyone. hope well. Good doing you, I Wojtek. morning, you're and all

demand from Wall recession experiments run But would like never the than a are continue our some and are trends. a rental a strong. today, homes that by in that suggest times unprecedented with mean high-quality their we've where incredibly that remains Street saying Street a to this sit managed yet financial seen the see, macro-economic and more for professionally start to looks have me through we lot to we course. But recession. past Let geopolitical living as we Main I

resilient we quarter. defensive, I'm be business that and and another to solid to report pleased Our continues delivered

our Let me share with Slide X. some you highlights on of

to piece X,XXX our the With position the homes year, compared low ever home homes some for our note, the in deal more and versus multifamily record which continue to to home. high of transaction in NOI have this U.S. important full We occupancy still sheet and in our decelerate XX.X%, significant a at for substantiating of during halt, that to see and flow that balance transaction, rent on mortgage NOI demand of growth. portfolio turnover reduce value own of our where our remaining Hudson. we've than margin assets, with rent This is consistently we the same compelling by of X.X%. cash rate almost quarter high a our homes. blended an for landmark amount is ground our to while grew And towards a environment homes to remaining is growth record taken to business our future the environment sold to is QX generating end, delivered We quarter. we a in close X,XXX acquisition simplifying an On as a exceptional single-family quarter after plan results XX.X%, another operational portfolio in for Tricon. interest rental XX%, XXX leverage strong the evident a and growth at XX.X% And in remaining landing today's step we

is homes and we slowing down our up going price committed and on of larger prudent At can powder, homes, this down a have we strategic prices, that to financing and slowing growing dry of guidance buy over given faster we to rates liquidity climbed and long clear, new conditions, and acquisition be equity our means today quickly previous in business this our program a markets The feel acquisitions our becoming very such the of capital rates balance we than more. once To can to through short and are so available. term including about at securitization on now in billion much period scale opportunities time, our and responsible environment, way. cap falls this today's our X,XXX position market We is pace foresee unfunded discovery. While of higher we where it sense ourselves the makes accelerate have remain to sheet part where model third-party the market of depending discounted or is own do the $X cap that rates great we acquisition existing buy nearly at commitments. future portfolios until

that when is time right. capital deploy We will and the lean in

to Moving X. Slide

U.S. history. the difficult them detail regarding in persistence U.S. portfolio to dedication with billion XX-year of our and transaction XX% the which this partners they exiting deals sale, of month. a we for acquiring This the and want back residents end the multifamily to at in which syndicating the XXXX, our that our With been well in the The to the a some of we XX% close the XXXX ownership. by have transaction more see over started transaction our portfolio at divested for in execute IRR would thank The our line. new wish with team of We're can as best You an expect multifamily in work later. and partner and I multifamily JV to was and to to the for is $X.X also and successful multiparty have for XX% transition completed portfolio and portfolio valuation was round team October. us sale represents sale, their an property plus our for Tricon Tricon, complete complex management X U.S. over hard most trip and one new incredible grateful finish times, $X.X in fully service billion our getting this to their years owner the

proceeds $XXX included $XXX performance $XXX million equity of half million of plus million management gross portfolio, of the goes for fees, of pool. which value the Our our LTIP into

over the single-family credit with rental our million so own after corporate on of net of with to costs, bank portfolio. in some to outstanding stock able growing $XXX the equity various JVs, Overall, cash $X new were we to from again, our our the when we And proceeds divide pay continue market private have transaction $XXX unfunded a and to clearly our billion that we public enter buy capital our commitments of dry liquidity now million the back nearly facility stands left This and valuations at between $XXX powder million. And exist as massive demonstrates today. transaction cycle. including deploy

reported Let's an homes portfolio evaluation turn SFR noncore sold average fair per of the our line We the IFRS to book on value. throughout Slide a with on value. of were at X. NOI comes implied XX% and This X.X% a of an at steam the that based cap year premium dispositions completed in QX rate steady heels

multifamily is while to our addition, rapidly progresses cash, In Canadian derisked U.S. being residential our generate portfolio developments it through as continue construction.

value the CADXX.XX have reported net in we to lot All far is $XX.XX of over and done. our believe of and of a a faith asset share this that per or stock pullback say

to to on about move in we're there what Slide Let's rental out the X talk seeing housing market.

versus with year, market up been nationally but year, mortgage rates a last own compared to X% this to far It rent has never affordable home. are rents breaching X%. So more

surprise we We slower end rental rent affordability is growth July it of $XXX to in providing at that significant then, chronic and In in families our the by in end. part even available as for September adding we year sight and no we mortgage an homes of the rates price an renting U.S. underbuilding strong new very bias. occupancy leasing helping driving at seasonally August costs a the our A and when relatively as our for few school and terms problem, at no Slide we're to a shortage. occupancy with as strong. period months pride for fact, tend build-to-rent year, knowing month traffic of we take solution. as and combination national and the to program, the leasing growth turn take to a settling enter be dip more that and be Housing X, of QX the own to by It's rent quality look is points remains homes been in data, to followed accessible exceptionally to rent construction rental more homes supply demand healthy one. versus home has entry-level amplified about higher per

decelerated October, a in marketed some is As are being in lease to from in the pushed demand X, from to up The XX%, historical we occupancy our rent occupancy frame into you back can demand-supply growth our context. for to XX%, over we seasonality you slightly Slide and bias. On see the where wanted balance reflecting in double overall and said, return that XXXX. moderation is down heading but the in homes as growth. we chart, With home but of see measured in level new normal trade-outs leads levels, still starting what rent QX per experienced pandemic to seasonality a we for

was the great of supply of which to homes homes and rental dynamics factors have their pandemic to seasonality Sunbelt work, return X% set sellers to very One we're light a in wanted gradual to Supply should to the play where also of markets, challenging it We high about trends. office numbers standard. were more rental to at of our we mortgage hybrid rent or be COVID-XX and appears seeing demand because be any where typical the markets return given in migration peak. still the the to expect growth, circumstances higher suburban opting and unique that from the single-family X% homes acceleration our prior by environment. though With a these brought might rents work-from-home be rent of at are even flag caused to exceptionally to softened back in about in would-be by home the a could homes

acquisitions. X.XX% X, about our talk successfully higher. buying Slide rate are cap now a of and criteria We to shifted and let's Turning acquisition

and look buying has year, up up X.X% cost price financing debt borrowing implied the When very multiple homes trading nearly In of FFO rates moved Fast just a signal rates. XXx forward or makes this with today, significant March is acquisitions stock has cap rates to moved closer homes dislocation. is of sense to over of where X% cost alignment see that at or us, we're we amber is financing our we to market CMBS an much at securitization meaning to at to we financing price the it now and the which to faster. at is which FFO back to However, better essence, buying an experiencing are XXx, multiple, of above between accretive. slow and until for

X, temporarily term some you the capital wait and are Slide back proceeds we've shifting for as our investment buy portfolio near in while As capital opportunities we debt done from with sale multifamily acquisitions strategy, to also to we prioritize U.S. We less see the interim our allocate better the can and stock. plan instead repayment on allocation to over emerge.

very to of quarter, XX back to during as acquisition off to up partners. X.X million the are our Likewise, and course normal we that we we months. the bid completely grow issuer to from when the buy not want the feel can spigots course on over During shares announced the beginning to quickly pandemic we JV I taps are adverse turn time the right. is pressure shutting the the emphasize of did no we under

maximum and on will be private value shareholders our for and creation long-term capital investors. with allocation prudent We our are focused

to our Speaking presentation to conservatism, of Wissam, a discuss financial like X is the to fiscal would who dawning pass I now results. Ps over appropriately

AFFO X% value to rental an Core million year-over-year. quarter. work year-over-year XX% to million, exceptional team at was good of XX, continue to results. up from which XX%. everyone. properties. get of want and of their to summarize FFO gains cushion continued X.X% was but another delivered dedication income operation with hard thank $XXX fair dividend was metrics $XXX key down better was FFO morning, Core per on an Gary, the share year-over-year, ratio we share up we $XX our $X.XX, we per $X.XX, to as and with million. of payout still us do. for support you, our providing I quarterly quarter strong AFFO everything We On our increase ample includes for Net X.X% Thank Slide financial

or almost book XX% at Lastly, year-over-year. CADXX.XX, USDXX.XX stands value our IFRS up

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

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

year. fees In the in residential Our created results slight to related strong there prior our was very compared ventures the year higher reflects FFO past SFR contribution last development decrease from joint newly increased year. a was XX% property in onetime year-over-year higher prior versus year, commercial to FFO a fees asset sales Johnson. driven in decrease adjacent development comp by businesses, by land from from residential the management multifamily while lower fees in and and in in This U.S.

debt also flat interest single-family as future our average up with staffed expected QX expense for in corporate we last with Of note, program. support for of side, balance portfolio, was listings our with million Meanwhile, higher from more fees. And holding to would travel of expense, along year. year favorite costs often. to corporate the interest we and LTIP SOX rental compliance generally the higher as started related overhead we be associated expenses the performance up increased a growth This expenses without accrued and to have On rates. line our included and $X.X our this overhead costs U.S. growth

of quarter year equity a and reduce in this and than XXXX to IPO last XX% as count higher U.S. the result leverage. share completed diluted offerings fund growth we the Lastly, was

debt-to-EBITDA, Let's turn Xx. the to end the Slide XX. is ended debt am which I near-term low X.X to on proportionate to of net on that the of at report profile we pleased X.Xx quarter target

actively our our debt at and at by homes This We floating structure, exposure on homes. caps of rate exposure rate rates. rates permanent maturities, floating fixed having and not rates. lines it debt into when acquire part we do note an our we And rate XX% have a rising interest enough fixed debt we to this SOFR. more have of of used seek is to a and is primarily is do aim have instruments to debt limit X-month Nonetheless, is in so. to our out near-term than of XX% warehouse roll to minimal we acquired that capital to most of large This pool term floating subject

any Our been we debt remains a near-term profile top priority, and maturities. have proactive with terming out

we on to Slide where stand. So XX, wanted highlight we currently

they on loan U.S. And XXXX. the where we that an before, pleased facility our million of portfolio. debt to sale upon can which us in in maturing rate fixed October, credit repaid increase rolled FFO present a You and I plus includes our of at into here XX, the term This includes refinanced Slide On debt debt. lines temporarily am multifamily floating $XXX subscription optionality more in year XXXX guidance updated gives to a by are per we mentioned floating for little the to core the a rate guidance. until full attractive. performance become did we've facilities midpoint at U.S. refinancing approximately until net taxes performance inclusion included These some to fund rates cap, see million share $XX of the roughly fees no if multifamily We due used long-term debt after $X.XX maturing portfolio. in earned fees exactly $X.XX XXXX of that we warehouse from are with acquisitions The have XXXX.

a impact up $X.XX strong had the growth interest growth. year expense $X.XX, rate full tightening now driven revenue portfolio. year, basically very same-home to same-home negative strong to our of guidance from impact We and for rates This beginning multifamily $X.XX to to removing U.S. $X.XX higher Aside of X% moved NOI that, by the including slight was of of X% to year. by at by very the our essentially offset we

growth been for it lower from expected potentially our taxes. basis quarter, and the midpoint, X.X%, accrual lowered side. and to lower-than-expected bulk also X.X% expense property maintenance see mainly in far, the expenses lower-than-expected to taxes in repairs, down may same-home seen and coming XXX the in biggest through due what come to conservative we're our looks than have We've fourth waiting Texas We points of turnover our so to on tax our We're still the and Florida like. market, like Georgia, although prior look

XX% same-home driven lower projections our growth by the to NOI to expense XX%, increased growth. we Lastly,

opportunities in attractive As pace also decided future. our the to more to Gary for order mentioned reduce acquisitions in earlier, capital preserve of we've

our result, for a the acquisition guidance down homes homes year. X,XXX X,XXX As from to moves

aim look in could range have X to XXXX be is target per XXXX. excluded well of volumes, ahead economic flexible to more we debt targets this SFR know in year from launching our an beyond, targets the on We this the potentially a and of rate as to we these uncertain and acquisition Xx $X.XX acquisitions. opted to share As EBITDA of and within current light contingent interest venture. get strong as much that to lower with intent leverage environment withdraw our We deck. we environment joint and rate to to outlook stay our AFFO But follow-on $X.XX

higher these quarter. to we our for-sale NOI FFO NOI some growth. growth, to the the will We our the growth closely. see Generally, of provide housing interest Officer, lower Like sunshine Conversely, and Baldridge. we more own per in rates market softer upside ray of guidance next turn environment, share. more from direction a in formal to times, to accelerate over I'll or favorable monitor these Operating very FFO into we could volumes, term, of turbulent very about see feel will continue I into factors the headwinds call a our Chief for XXXX now good And insight Kevin same-home torque acquisition give an as drivers we near

you our start frontline the employees. everyone. Thank to much, very recognizing morning, out good as by I want of Wissam, and incredible efforts always,

beat. team able resident the macro missing deliver and Our superior weather all backdrop. remain by we job this we the we've did extreme a to as metrics challenges, encouraged a navigate been quarter a achieve, experience without and remarkable to monitor they operating continue as vigilant ever-evolving I'm

drivers XX quarter. the XX.X% Slide growth to of for double-digit NOI about talk turn of Let's to same-home the our

driven a XX increase in rents X.X% line, points average the revenue was growth gains. by On in occupancy top and basis

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

to keeping below keeping residents. market strategic industry-leading self-govern renewals responsible maintain growth resident We turnover our to on continue rent helps rent for our by low. and scores, approach existing levels satisfaction while This increases

loss As rent XX% to Gary we harvest to as of remained that think going growth growth into a basis continued good mentioned, lease going the up we've forward. October in the portfolio. XX% provides rent built strong continue We for to this

debt months, Our into is which around revenue in we and later numbers X.X% levels pre-pandemic of next over these few has reverting year. the tracking X% past or bad expense, lower been to embedded see it

house services about like enhance experience over renters to panels grew next partnerships, cleaning revenue such as the revenue or years last services. almost continue insurance increasing year. we the and technology X% new Smart We to home from by see current Home introduce by resident a telecom of to roll and out other Finally, path as couple XX% discounted programs per solar other

The in were expenses XX.X% expense discuss property of last taxes, Let's Slide reflecting home to markets. our our which year, by in was price XX driven turn X.X%. mainly same-home significant appreciation up from to rise growth

tax maybe in it been Atlanta. on a looks our As tad Wissam like key we've like markets mentioned, accruals conservative

continue where of month, As to roll land the a we bills through next will we'll for the have in better sense year.

expenses On inflation rate year our work of our orders as pandemic. higher quarter, focus the well of activity to although also capitalized cost and service We by to had significantly over the were XX.X%, proportion as order post portfolio XXX decreased to points our be that other basis a turnover maintenance Turnover from thanks on greater as expense. this repairs occupancy and work last instead expense hand, down qualified experienced bias. was customer down

time being We tenures also done on during spending scale in inflationary COVID-XX. management costs higher costs of we've turn homes has extensive and capitalized lastly, the homes of expenses, our their of resident given grown. achieved more we're work pressures offsetting the And a and as longer with property some portfolio proportion seeing people that more efficiencies labor

on impressed together came to with Let's XX I'm say impact. hurricane be and you move how response Slide would update our to an our understatement. To team

members surrounding Florida As help we and from as question our from without hesitation, hit soon in travel markets sure looked stepped teammates and in team neighboring to work residents away. without make to all, markets the All day night were had hurricane right XX to after.

said renewals, from and expect Eastern of financial of with home by our home out that their offering the moderating this we impact payment every their and, sell around rental help if buy programs, the entire rolled to XX, a such Operations, our turning the covered of of rises of residents reliable getting and share Brian and Slide with with who it residents people attitude response residents our team. rights, to to quality I'm In our caring to pleased hurricane residents SVP Our strong to includes newest month, assistance service. resident $X overwhelmed is repair the and can-do decide Tricon. million, happy course, above to finally, to go providing bill I'm of Brian, wanting the as commitment way of to some the And to for best, to our ready FFO. teamwork, recently This key the this rent to opportunity you was down buy homes throughout insurance that program choosing. to total, Indeed, of we bill occasion our minimal multiple Tricon with impact outlines Edge, that launched amaze move-in team he to And elements our growth and giving the to safe Vantage report X/X on it. minimal me. which with remain continues beyond departments wish

to we've course, residents was pen to take along, many truly all formal accountability don't been hope walk talk care. the public walk. important our bill the its the rights to but aware kind same. paper these that things Of for our but I first have of were how led industry. others we to ensure put much This of doing it we And talk, door do and to for of is of the just and way we and We open to

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

Kevin. you, Thank

SFR to Our the resident-centric takeaways team. approach a a To with industry leave is in a you source want we of for key to make our us few up, on and inspiration Slide wrap XX. continues leader

value the company continues to is of our our First, extremely underpinned well. SFR perform by portfolio, which

growth. believe to we emphasize Next, responsible in I that want

creation. finally, it and FFO this of call, as and at good perform said I not torque elevate immune capital the we designed when well growth are available macroeconomic in continually to add have is pressures, right, significant our share long-term And powder profile. people, we're is grow and the And and technology the time We value in dry can to place allocation options prudent we all foster resilient our to to and that platform, defensive bad and in times. believe to business beginning our was although per

hard a strong sheet we Jon alongside are when with privileged conclude willingness and and is strong environment. a to and their ample such and a residents Colby a portfolio, to to Kevin third-party to to remarks resilience I for Andrew the I'm macroeconomic by difficult we deploy to their team, Carmody by prepared us will in look and Joyner capital now unmatched dedication, balance the move and an of Andy I questions. work that pass positioned inflation-protected we my saying joined perfectly produce our face above call world-class will truly As back back quarter into questions. attitude another environment. ready be go will Wissam, beyond I risk-on also enabled work, ahead, answer Ellenzweig, take can-do to

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

so capitalizing I'd start that the you like between expenses increased with moved scope those saw guys and if as the away order expenses. CapEx, of your OpEx into to and flip the moved

to line should? we should Like think until will these normalize? going look should like about forward? items it how OpEx So we expect should by relationship more -- to when then normally CapEx be that we And normally When expect elevated? like

Chandni, to pass to that elaborate. that's question. a I'm great to Kevin going on

normalize that I Thank it year, think seen Yes, probably we'll you've of I into Gary. middle you, things and as spoken. see again think happened, the next what's we've

a they tenures, in had they've day, just homes hours longer at longer, instance. we before for X were day As only living home home also our not people living but living been in a XX a hours

we're scopes people afraid in They people more on have get we getting been even the we still orders homes for involved. property. turns We X had that so not the that the take on years. are to that larger work are getting and a And our were had us their calling -- R&M

of and Now extensive. more those workovers calls the we're just waves getting are

much year. going continue, will it. pretty think next probably expenses back to first that's to inflation. of by of definitely tracking say gauge say the totally would the quarter So hard I the be through I our be I for mid we'll It's -- where rest quarter. year, second to year, this with in part sure, next would But

of that mentioned follow-up, would we markets pardon But how how take FFO need the we Got get still $X.XX from you help understand beyond for And the during Like we my numbers what transaction I'm to Like the call might long-term obviously focus be range to markets sort think like should past. from here? that basically me about versus and to the it. the in back on lending to much But just of would I'd deck. that outlook there? a given misrepresenting for removed get us it in normalization else missing? you of something $X.XX, can come core XXXX you that if to you've

that. I'll take Yes.

I for to And very about XXXX, on to the macroeconomic talking We're look, that. in unpredictable Nobody trajectory difficult risk. environment. it's So was $X.XX. just The Fed. clarify, think -- definitely market $X.XX reflecting we're which our of and at is soft that you're really a because and clear guidance is the we think moving

buying think what think It it achieve positive is at a have to cap see go would I quarter, so can't we'd just a this rates. take spread it that homes time. so we or relationship to mean it's we to year. And And homes acquisition prudent financing question X,XXX and have to it. between specifically, your remove We would doesn't back slightly a rates X,XXX answer to

Now a necessarily take to doesn't happen. lot that

if slows rents So pauses a XX points a points Fed acquisition the for by cap increase NOI in and rates were little or down, basis at basis that's come if to prices or you're or again, example, that's in a cap your if by home rate up financing XX another X buying decline or maybe X%, X%, went bit.

sense. cap to slightly X,XXX acquisitions, to but to think positive NOI lot, of a same-home next growth. strong year, we and a spread take hit acquisition doesn't rates makes see financing that thing need order it in rates, between that level we a is want So we see The

we of hopefully, 'XX. gives in say here fee would say, I for we JV-X. like income. we're once get high we're for, deferral as line there's invest at let's capital. looking down profile. toric But Chandni, we a and our us to slow a to in that up bit that that don't single better is we end us what get a by to opportunities could decelerate do, of get or a to if we That's X% close $X.XX. it FFO catalyst chance And I digits, our to but get period this, to want wait I All 'XX, 'XX. is that, share obviously, just And But for we helps But hit per I significant think in maybe it there. to get 'XX into or think if think little we'll we'd that year. next And that, X%, big see probably the

Saric comes question line of Scotiabank. next from Your Mario the from

to coming acquisition original into the built guidance team $X.XX to $X.XX? spread 'XX the what that the question, Gary, Just back the was

Yes.

neutral. So the pretty it, we were actually we time updated last

So X.X% looking buy we homes to we were under cap were finance a at and that X.X%. to just at looking

maybe have blown out got of So to X.XX%, us about then, and that would rates But X.X%. kind there. financing have since

which we And leverage. let's home generate just negative spread of cap prices like, to X%, slightly a IRR. even you kind obviously, from work. by a and say we neutral, have more grow that But a gross still generate have could It's can at into right? you X% the still and we been buy of and something grow long to about strong grow actually homes, can because of with you you term, higher So we've is can X% private that XX% negative positive NOI IRRs, it's it X let's or the -- think get even to now. year, you perspective So don't X% So at X%, interesting see we bit little right? leverage, say, XX% or probably can if XX% much very that interesting doing over that a if scenario. to market lever back a about it doesn't can

us the and happening just for our to math go for kind So investors wait and it want that's makes background to now, the why ahead. faster, Mario, better opportunities sense but slow they right down private of we think for in that's

Got it.

Okay.

think of the acquisition abundance buy of an an homes that opportunities broader when So terms happens. There's market expectation settle if it's seems longer-term things positive in once in to reasonable -- spread a out. I

kind really per of is you homes of year X,XXX are identified. to you So those that presumably kind need up parameters once

about when getting you JV-X the side you XX%? the off what kind SFR that the are of risk? the at in So appetite and violation? uncertainty about it that about sit growth ground, most institutional changes the Is of terms you assumption on NOI is identified, back it given Like in think factors biggest concerned same-store

mean feel we great I portfolio operations. of about No, feel great. the our the Yes. fundamentals we in underlying

interest and from this around debt trajectory permanent. goes we anticipating our did, difficult only that's we recession. once level think is no significant will, the remarks, capital real of sit and of where The that recession. concern mean mean, again, not a back, away, But prepared concern seeing or said in growth. of is really as dislocation. I Just kind things. If I that dislocation really that's Street about is of really holding markets NOI But it the or us change uncertainty a That's why what's really rates, right? today, we're there's we back, more not this we're holding might Wall we same-home and

are Sometimes rates, for to That's want do much because we We'll we going find again. up point rates of more not, public to think, when but price we're like We And homes, think we for right? there'll homes on. now, be point, builders, they're going have a a a Right opportunity feeling the we're that. us. where bought discounted homebuilders or signal discovery exceed the bit and green markets, that will we things equilibrium faster. financing transact. cap permanent, are think a setting significant acquisition find us to from but ourselves light some We go your that's of there's at some in

sure think at to prices. those lot that loose. also make and may a shake want discounted that because we're some for think ready the start-ups single-family we getting We maybe can rental we we And trouble financing in of so have portfolio get that

Got it.

deep you see how suspect response today? renewal kind froze are very relation you're Okay. in the confident the that And portfolio necessarily your of spreads where those have the renewal those turnover I should to terms X% growth, kind it spreads talking given it a generational the the is mark-to-market you then How 'XX? the element event key A strong. X% in Like to to of onset organic in mid-single-digit spreads the slowing economy, is during renewal Like in about, think a of would recession of in event. still of a hugely spreads of can pandemic, today. like in the not we about be renewal that you

And we're higher main of X% -- pandemic to today. going confident we're have reason think Therefore, sense going to the still think the moved said, moderated about Pretty be up, of in we're that inflation. inflation, in It's an We think confident. be the to level to renewals. you we're we're it -- heart nearly I still is, some one, and we as inflationary to going X% from environment. but we makes see

in it Zillow, The So think comped quarter that with makes when where lease we has And our touch came loss down a loss And sense, the in We portfolio up. we today. moved I last it right? lease, particular, sense. we're are maybe given makes comfortable to XX%. it to was think maybe against

have This room quarter we a is But XX%. there. lot still of

And X% on so good range, very a passing still for we renewals for in think our the it's deal residents.

Got it.

last the -- back capitalization question, And expense Okay. versus to quarter. the coming on this discussion just

expensing without that expenses in growth roughly changes capitalization X.X% to have would the what mix? year-over-year, of been the terms versus In

everything about if inflation, to Yes, materials. that includes expensing it's about up and that the at we're XX% about way and we that's XX% would the related cost of whether is it to you maintain, which or capitalizing, labor look is think

the about So would That's up it. I X%. about that's think way

moderates guess -- right, here, next seeing. to from that sticking we're think maybe into again, I is year, that's best probably I'm my out about what again, X%, my neck

better that some hopefully, that So items. the expense -- indication into you gives

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

a mentioned potential further the acquisitions You selling in MD&A.

a contract if maybe curious the current I'm run significant homes is? what you're under still quarterly rate and putting number today So of

Yes.

XXX guiding under that significant are QX going of and a So those we're hit to the amount already homes the to contract. are today that are under contract homes some of

want down point We we can in to go think think, to a go turn want much a slower. change we and prepared in we we this if But might as -- on I are probably at We XXX said see assumption in faster, up the dime. kind I into let's reasonable for end I our QX, we where say, if QX, the right? So slowing remarks, it's of QX. think for We environment, we capital. conserve

into expect then into slower We'll So by get see. fast. maybe But I maybe to slower QX, QX, it's time would the we QX.

you partners? but partners. can of Okay. from Obviously, it. flexibility IRR Got then your your sort of through math talk your the generate you makes walked the still you standpoint the could a how standpoint, from for that about on And solid sense

decision willing long to they how the JV-X? And longer does how of be are So waiting flexible? impact sort on

managers for the want typically, managers them. do or used to it's fee capital Well, down that to to and we because hey, want unusual saying, not they're private put out They're to GP from perspective. incentivized slow a

XXXX. agree were out, issue think, they bit period homebuilder both that and the and but think I I no for supportive got JV-X, makes capital a little surprised, think direct investment sense So the maybe in getting with I it would and that funds, very us patient. they We've they're

got re-upping when and us indication the like the program. for us They SFR we've They've they're investment all month. for they're next time expressed they're we to us So the with lots and of very of funds. capital that supportive and new complete to put an period ready that raising out, really happy

decision. not a want is decision. a this Tricon We So go partner a to slower. It's little

that. and do when they'll faster. a we to we support know discretion to They're us go have supportive, We want lot

comes Nicholas from of question Citibank. next from Your line the Joseph

peers? many Maybe your allocation. recognize bit target kind a about range, but your you program is just share what single-family of thinking within to capital How see than I that leverage, on further against higher the and current of we are repurchase with balancing which

Yes.

proceeds we largely the allocated So been multifamily receive to selling from the portfolio we has the received U.S. really debt capital or repayment.

to sense. We perspective, lot buy the mean, now, then do stock, will obviously we probably that end. improves quarter We back to some So anything of a buying think capital clear we're have pay bit to over that. again. grow Nick, neutral earn. first going I that started probably stock. we're that's subsequent given acquiring from stock and a the signaling effect, makes will use to We're our we back we waiting. the and be -- left than It fees be be else, capital then back We money it left an better to our to the to But of neutral. faster think again, a of sense. down it's more buying And going for we some it's think We're makes of buyback. for thing right and We leverage metrics between it's our economic did. debt, little wait opportunities homes

of Or Is penalties with -- that could get sense prepayment to kind there additional saying -- a them? debt there of yes? be are Just associated the down? trying paid that easily

the over to maturity is? I'll that near-term schedule about of kind Wissam hand talk what to Yes, and

you most could paid as that. maturing XXXX. nothing Nick, see, of XXXX We there's back in or

addition After that, net EBITDA number proceeds is QX. we and adjusted used sold back debt In to the new of to as was our the X.Xx. portfolio debt, X.Xx to repay

debt as deals the acquisitions to kind growth prudent rate ability mentioned, of that potential as down some pay we do at for of look the XXXX. we we did in be one just 'XX, potential to and well. more but of So And coming to also I have think as that's save our refinance October, some really the pipeline. the floating mentioned, and matures it's of -- have and our Gary back that's a in deals think debt we number 'XX We to maturing capital,

no have cost, to the place ability cap also a refinance upside. hinder put to with the We that also defeasance but we in

remember, a stay X to within was So as to our range. as that term that our going in adjusted we're on set we well we're think good short net EBITDA, Xx, and to metric goal that we debt position

ratio cash payout then be flow, also used you a for buybacks? cash retaining terms relative right, flow And of helpful. incremental will generated lower peers, U.S. a just REIT. in not that to have obviously Would That's free

enough the I so. now think million which I mean buy think we've to implement don't left I to got X.X shares. NCIB, over cash was

get reevaluate. we'll we'll shares, then million through X.X and that So

business that be for acquisitions, is the moderate pace. throwing at will Just I used more think probably the right, off cash a

from Adam of line the from comes question Kramer next Morgan Your Stanley.

of held think Look, fairly I kind share, the JV, kind just right? wanted I of it's just to versus ask in share your their consistent. about

of share XX%. of acquisitions kind guys' about Your

what Another right, of Wondering any continue to way that? kind appetite of of kind around your to is kind that? change your for of with future growth, your share down there's kind kind thought acquisitions. just scale And of proportionate if in external of process

could a at, where money, ones price tell see the then it of Adam. with generates We or with X/X to that a going go back the mix ratios. of in I They're of shareholders it. to to revenue, that of much But this difficult used if like we want would kind you lower significant and environment it's XX% have issue co-investment. the co-investment. were used who a our great X/X look, at co-investment to not ratio mean it's on We're that And might because XX% lower the kind question, stock forth we seeing no that. very Yes, keeping kind and lot. at we arrived I look you NOI, want we They're the at get raise slightly is if an it's NOI. our benefit we the look ratio. in And and about fees. of XX% it partners NOI and

request. capital-raising It's markets. not an Tricon it's issue of from more So a perspective the a within private

but contributing for cash. about to in flexibility have it also lieu of owned portfolio we other wouldn't do we example, some our there, preference. So probably There's homes think our of options, our go wholly could in be lower

way flexibility but think if get about. the the We to it's that's JV-X there, aren't some continue we'll something do have quicker. So markets another to

the is recognize wondering kind of kind we get lease I'm in ground Got the leasing of the of further stabilization just some occupancy you're kind the in of here it. terms what just then That's Look, looking at of the you're as October in into holidays, understandably, important. metrics. deceleration on growth seeing really helpful. number. seasonality right, kind And new kind of new

get to kind metric you're here. in lease in I the year but just and kind remarks, new think into love mentioned I'd end as you seeing of towards Gary, your we of what hear November

it to more going to give to detail. I'm Kevin on little Okay. pass a

going normalx. would In rent in really Yes, and into times, we're sometimes and up November. mean, growth October, seeing we we're from for the really back was what X the I decelerate August points Gary. to something to experience that seasonality. experienced years Thanks, to September, hadn't now new right we back just Okay. last pre-pandemic it basis lease XXX is what July pandemic, in It's

September got occupancy so late winter. the wouldn't throughout August, what push to that's vacant in up try happened. So to our be occupancies homes We that protective

aggressive foot what the today, off so as We and be And for our October we gas, in so as aggressive accomplished we're XX.X% can we be the in we can the XX.X% to. we month, we were took winter. needed

think I patterns. past we So follow

will in a still again more in months, We the see deceleration, coming time. the bit little and it a pick up spring will

our we've been our the So very still self-governance. is to -- of able We've lease remember We're it'll been strong. to thing have I our to just able to follow -- to more still that we've hit renewal cyclical patterns super is, XX% before. that still fall on. had we're to to upper the a that growth, loss top fortunate XX% limit And mean, demand to side of back

industry, twice. the XX say, XX. our XX average our think pre-pandemic, bulge short. millennial housing million by to had leading X of still The turning if That's we And the than generation is XX generation. There's is about cohort millennial demand years more you to edge that old. have XXXX of We almost units age

X that's way. XX our leaves So massive coming of years to like strength that demographic

feel cyclicality, but staying to some it's really with asset great we're it's back to the I just where confident of is going it's really And So class. our strong. a business, going, be

Jade question line comes the from next Rahmani. of Your

Projection on for not necessarily for overall take the the market, full HPA year XXXX for portfolio?

Jade, this to but my I'll tell probably I of how the and supply if people rates thanks an I in could and There's it, indication you, from place. rates doing is in my move truly when market tight I we're interest market. HPA I'll of talked although in I just got question. supply. here, just the think do about sitting mortgage environment, right? type best, to try it's gets think fast, that going for the home wouldn't predict any best. homes, And up okay. shocked home they X% be It X% mortgage that the no so that that they've on to stable. why in is not a going have sell prices a really And their make Look, what Because that They're not I'd the to They're their a take over X% X% mortgage. if with got moving would of I truly sense. surprising been matter you Kevin is. think Xs sell doesn't or mortgage rates months just tell it's stay

less that getting less So up listings keeps a you prices and and steady. end lot supply

anyone. almost virtually, the And the more mean, than one's as home only probably we've buying XX seen -- homes have we drop That's our in so X%, I peak And from have the prices X% data country. maybe markets. no it. by as in better we we way, are many

like steady, because anticipating little good a got next we're year, good. data not But on bit again, to But they come a X%, prices. points be our do is another year. again, by down come that's means us the next way, they barely softening, spread, things more X%, on maybe if significant, right? not we're cap another X% maybe maybe come rate, off home So -- And And get down a positive opportunity we've but into we very on an XX expecting peak. thinks team the basis down which fairly it for little we're they maybe, the bit anything

and CapEx But trend R&M, with higher much of more on seems the bucked up taxes. inflation property what much on a CapEx the have peers On to have was yes, dramatically. seen pressure same-store the basis the Tricon issue also side, even accrual

more So some around expensing. that? specific – gotten color items just you a triggered there that on some shift? any really interpret moving But that might things give Can Have little that versus capitalizing just as are

think of we’re And Yes. for I’ll I the answer to CapEx. what question and on seeing you on want let Kevin sure – with weigh taxes. I kind Jon, maybe property mean

XX% geography, We yes, maybe property for about of some the to is Kevin, haven’t and talked of to look there’s if on I Jon, kind AFFO. yet. you right? our definitely little at Jade. Because, impact again, that did year-over-year, dive maintain, it this that up cost down you in break you And to that bit think, But tax. and then, a want is over

Thank Sure. you, Gary. Yes.

which was us the we’re mirror. Gary up of inflation as the that spending roughly saying, ¼ more that more of materials. XX% calling or their a it About homes, into of a XX% their that XX%. rearview orders. volume talked about really work had we maintain, on what due holistic I cost is now people again, properties is higher in of is and pandemic the allowing So us earlier bit is of due allowing a And little on our in it lot to trades look is to to and

previous kind because of which in homes, orders work the expensive, people the was of we did ratios. when So work work we the lot of nature were into calling then in got a more backlog a had homes, hadn’t the the orders it capitalization orders we not just been we more and hit period. nature than the the us And

cost get the into some going to then $X,XXX maybe near would through the repairs, of lived you. did geography, their $X,XXX total buckets hours again, down it drift things that these will the in they of staying regardless we people little we say, was cost on more deck $X,XXX all turns this, and work In year a Our encapsulates turns HVAC, homes color total of landscaping, XX the flooring, be mid-next more are the back And the should some a more we maintain. as Hopefully, I it to harder drift like our to is expensive. way, cost to But paint, for maintain, in a through term. interior their or then it to orders. back that down once bit get just of $X,XXX longer. due And and homes lot in that’s just day having to plumbing,

orders year-on-year? work the On it homes was order existing than on ratio that were tenants the – generated side, on declined work more turning more turnover by because

really the CapEx, occupied recurring It’s for Yes. the definitely homes recurring occupied on of homes almost contribute CapEx. the X/X

in So are do calling us their in it’s homes. that are that to people there, work

to property want taxes? about you talk do Jon,

during Thus seen touched approach in, XX% to to we appreciation. but where think call, far this a Nevada, I accruals, Arizona, very the in home on And little take of we’ve property we seen our come the sure. essentially in property price portfolio, tax in Georgia, tend we’ve of bills Yes, about California Florida. a rapid bit all and times tax conservative especially

would the that the approach we We’re say rest of the of beginning we’re side the at most bills due and still far in to a Florida conservative accrual year. that for so better Texas. that waiting for the have probably of I come aggregate, of But took in our bit little on

feeling QX, taxes into that’s good we’re So where we stand going property very our because just good about of again, approach. to and on

Capital Your next MacLeod Stephen question BMO from the line comes Markets. of from

Just -- of a sort to the with market, it's about frozen Gary, securitization little talked you up respect just bit.

just same on future rental acquisitions? curious are to single-family you your to So how create securitizations reliant room fund on facilities

Yes. Great to that. question. going answer I'm have Wissam

did XXX. securitization was XXX Steve, are know be July AAA That very deal X.XX%. today. closer spreads volatile the to will last close deal The X.X%. debt was up markets to today look, that same we I the are to in

a we're saying we're of taking why that's securitization. So pause

SFR, we've markets. available time However, of market short-term are loans of balance not is which seen until for floating-rate that new volatile sheet entrants provide bridge a securitization less where during available, this lot

and October do now, mature that time loan. extended out to warehouse put debt a a facilities, we in from place. -- in us term want some in a It was term though to even variable saw flexibility when remain any at that cleared cap the did X-year You years loan, kept we our of moved refinance X

it's fixed upper limit. an fixed, not quasi but have So that sense I we know the in it's

a up sheet our seeing to we're on stuff. now. balance that basically of loan lot some And So rate more freed us entrants floating available

job, comes have past going And or securitization opportunity an now -- great that a bank. what that in done Wissam an And Yes. really talked diversifying on really were is And that from sources us. to think, and in deal crisis to CMBS want we've I'll those just lifecos Nomura, the say Asian I last the is we directly financing market. now have to that which just I every expand the to lend good about times,

of proliferation we're time makes helps lending which and So seeing just industry mature. sources, it better a over the

this the JV-X, raised could with to that -- we any just respect you are limiting then Okay. factors that potentially the Great. see And limit SFR could funds you horizon that for see there fund? the on

mean we got really only to JV-X. is the thing get through I

it's the slower about maybe lot the So second pace in in a really acquisitions. a and XXXX? depends do half our We of going half. faster just that first it the How in talked on -- fast little we go

depends pace. it that on really So

or slower can raise likely have raise expressed have another before, event. before Those You later willingness investment go to 'XX I bond. complete to confident and as we're going we next are the and invest And the the really this a faster, 'XX be our we limitations. said is capital support or the whether But partners period fund. that to

comes Woolley Financial. National the question Tal from next Bank of Your from line

ask to about quickly wanted Just performance fees.

JV-X sort had any and you at continuing recognized give of would be? if the been you of do terms have have fees think that same at clip performance what there would been finished that you out in of idea the in Would quantum a early point purchasing, I rough XXXX. probably

$XXX fees. about goes our the in -- a that have Is think Wissam? And performance No. Yes do right, number Because yes, million. I which supplemental, schedule through $XXX is we about what, million. that that's

include the So the is does portfolio. of that -- that sale number U.S. multifamily

what fees end But $XXX no, to at our are turn It if the triggered the was and that We performance wait take in is the case a million terms till in as or earlier, the you the the to the to unusual, that but That the that's portfolio happens that the look just money we're generate multifamily decision made and of U.S. we what $XXX multifamily was in X the the could of would with XX actual supplemental, typically, sale on performance disposition. So typically Tal. order partners is fees. was to have because say the in exit the million, U.S. funds sale years. I a well.

of So be would until any we fees -- JV-X, performance JV-X in we XXXX XXXX. don't and expect terms really don't

line the Raymond Brad from next James. comes from Your of Sturges question

been there development happening just seeing on expectations, has accelerating. you in that's about has how market? you're demand quite returns cost robust and inflation look just market some Toronto pipeline, Just rent been leasing Toronto really to the initial in given the like obviously, growth relative to underwriting relative talk Can currently you're to expecting of market the the rent

Andrew break have for I'm that to question. Good Yes. going down Joyner you.

at last King share test leasing real-time And target. got we've leased going, & very Spadina tube. We a just to March at already. absorption XXXX how is We're Brad, Taylor project the just our launched about already month. X/X we're

to continue XXXX. in rent versus year, I Canada is through each up its integration a that's just dynamics now to and given going strong. rate $XXX,XXX incredibly demand And higher ramping think own year this the environment favorable So

we're robust growth. seeing So really

And talking returns? yields? Are you about

to XXXX expectations. online terms yields. to absorption going to our has deliver, exceeded Canary We're X.X% the in clearly, development well And We're of X north rental we're handles growth. deliver of underwriting Taylor our continue as terms comes Yes. on in projects Landing the as demand in ahead going continue of think I that of well And to have particular, as IV.

revenues are are upfront. would rents say projects costs underwrite. that great locking in underwriting, add, what just in those of a up, on also I think I based costs job are we But lot Yes, do little above although we a would longer bit definitely we taking are a than

this all, value we're I to good some mean, in really to portfolio. going tremendous all I shape, and think from So we're in creation have be looking really

So we about great it. feel

just great. the That's And to for program back on Okay. acquisition go SFR.

red dynamics green would old, what's walked more maybe perhaps flip from light prudently program? the on the go of trigger to paused take it the moving side, a through the or to what and You

would harder. red mean going Fed I Yes. just be the

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

I Thank our and the QX all look year you would forward participation. new results. to you thank call to for on this with in like to year-end discuss your of you, speaking We Colby. again

This concludes call. conference today's

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