Jernigan Capital (JCAP) 1 Mar 182017 Q4 Earnings call transcript

Welcome to the Jernigan Capital Fourth Quarter 2017 Earnings Conference Call. Today’s conference is being recorded today, Thursday, March 1, 2018. At this time, all participants are in a listen only mode. The floor will be open for your questions following management’s prepared remarks.

Before we begin, please remember that management’s prepared remarks and answers to your questions may contain forward-looking statements as defined by the SEC in the Private Securities Litigation Reform Act of 1995 and other federal security laws. materially due stated associated to company’s differ our implied with could business. statements forward-looking risks results from or those by the Actual and uncertainties the the statements we which to statements qualified forward-looking you filings by These contained the are encourage in company’s review. SEC, latest with cautionary provided earnings reconciliation press A measures the is call to GAAP this of release. included financial non-GAAP on on our

jernigancapital.com. webcast our our Jernigan, replay Jernigan release, over and is www. of website may you conference find SEC floor press Thank can Capital. pleasure audio You CEO my on this call at the of to It now reports you, begin. and turn Chairman Dean to

the Thanks will start with is Good company. the exaggerated. some few The just on today. the a joining Clemens to I think about us comments hopefully of forward quote. talk sector I and little paraphrase Samuel of want the my I’ll reports the a Okay. all. We and tone John about speak storage to of sector morning are paraphrase our Kelly today. for clever to demise you That’s look this greatly call.

was about reading obituary death his some about think his about his talking but was newspaper sector. – that I’m exaggerated, I in greatly talking Clemens storage reading the

I and importantly, We transcripts more of are the in time, much read at point of and is are company, year I XXXX calls. most anyone think is people than very read thinking much the XXXX going to And between every as better thinking. be line a well think. the well. lines I still And this to or alive will I prove it conference try other what

XXXX we being me line kind as it toward taxes cautious looks to sector always will as probably I are good nothing our be to very I whole think, – and growth they’re side, on concerned of the drives think as where sector and the top right about of But come is now. good on will an demand I going am still on think back historical think the there. as expenses are and is I There’s out – XXXX, for should what think about X%, course and we’re I the of expectations that. the demand optimistic I norms where get a strong far unknown. the

for this of than that I have less or relevant markets. But XXXX scheme the starts some pretty briefly about top I be XX the XX I in companies XXX into hesitant population XXXX. top only other talk we it. seems just good XXXX we our talk all And about supply no everyone hamper have completions think markets visibility so we to XXX to think maybe something of – And XXX off performance reported, new little will the in think in XXXX and I about But in And going think XXXX on. a deliveries are grow. as will continues expenses a XXXX. XXXX, XXXX, XXXX, demand XXXX, as and top less we number in As But will that companies far bit about kind deliveries deliveries completions, have in XXXX. to than It’s last even seeing and XXX completions go talked That’s they’re back things. year drop XXXX expecting flat we’re so that it’s precipitously concerned. year properties. all where overall with year to drop in to of the the to become the supply But not that next year in that about expenses, the we in are as so in we’ll and roughly is think and

all companies to there, again, suggesting guys impact a who mean who – reading that expecting transcripts, new new that of are public Well, in the site-by-site the was have are on their this to are the them and supply what year – operators they’re properties, markets? somewhere supply out So XX% their XX% between basis.

about consistent that metrics some keep think because you that is is is so what a our with driver up And with run can how and you that growth, that something demand. other I population

about there. have top XXX,XXX submarket and we average million an radius X-mile people us a XX XXX for the is market, today, in people So about with

that that’s average. course, your dense how from changes the market but Of is

submarkets XXX,XXX So the top markets. in submarket with people XX in we X,XXX the about are means that

just XXX deliveries we the in existing markets so on would product just surface appear and XX top properties the numbers. that’s round the It impacting XX% of look And using being, at XXX to there.

And think XXXX. have expectations a uncertainty we I very of now guidance of have we year setup and going companies by have been uncertainty. in other so I these the think times All conservative, to be achievable – naturally that are in public is

doing the from is where talk up about a And for to to and excited excited we’re I’m your I’m – standpoint XXXX the Capital, Jernigan about some about that. and sector at John performance forward going fundamental at are a what just So equally shaping questions end. I and look Kelly

it take So John, why here? don’t from you

guidance remain and made yields good JCAP. underwritten the on to X% to own investments during the was high our Dean last company and value finance, a earnings us for growth our of significant projects the balance during XXXX we of provides that XX% we $XXX XXXX. development as Thanks fair the on-off full during about, which we XXXX. on total potential had developing XXXX remained lease year the on that also up to exceeded doubled sheet that be shortly terrific value XXXX and of full and comparable can these that can about quality yields investments nine-month year development expected that XXXX, which the The occur. balance The increases talk begin year believe was And our are XXXX. for December range own average, the at for and made that which we that prospective pace guidance X.XX% investments for We XX investments me. year we we in that as last made Excuse provided of closed sheet as And recognized with increases very almost a of through XXXX fair XXXX we and million built to year, morning, consistently thereafter. value projects only of fair short-year a and during which everyone. Kelly

worrying that receive wins win, a property paying equity that bridge growth stretch this with equity they’re think longer excited our very projects, do sale bridge it chance new partners, potentially we to program. of win loans receiving waited partners program it’s our and We notwithstanding construction our of winding and development that about down to these the down can for their on the the in of we’re win and than, that those are the get developers yields benefit It’s potential participation their through finally, that partners of the about the a quite loan their And yields us investment grow construction for in investment period significantly that for are development which they investments. also money our X.X our the financing most out sense able that private the payoff we back traditional to private We’re a off acquisitions to have loans. returns a is last to property. we’ve to developers stabilize developers have at cycle fact triple over portfolio on pipeline the road a our continue without in over all equity the if NOI earlier have a a ROFOs years. means the is similar of investments We made added increasing bridges these off-market through

them, us we which current investment, in an getting development that cash our the other to two terrific excellent – gives yield bridge will on it expect great do properties and to interest. X.X% a loans, well. investment These with X.X% equal us provides X% and million very we’re is $XX on return coupon X.X% return on initial loans, all five in profits bridge PIK of a those paid Miami are have XX.X% or on kind on submarkets close we loans which interest of loans three which owned a and return of the tomorrow, yield a Our

submarket, our these like partners beginning more in of a the to five year, developer possibly we we’ve when out and developer, years value the time, $X the partner projects provides to bridge this refinancing XX% be mortgage staking facility per of Alpharetta deal we’re so, only XXXX. pursuing a seven the we our be that to value with developers, future the already for lenders of construction Atlanta million equity for of same from converting at would can, paying Pittsburgh, metro in One the I’d otherwise unlocked – our we’ve development, Marietta for Other acquiring rate we $X.XX make we’ll and profit. Fleming For know, remove property, ourselves and time additional investment modest the because much we average project risk in and last doing projects buyouts bought existing as what you in and our in based the low in XX% is, developers maximize X%’s the ownership. share is about a our done eliminates Jacksonville as we these date, to acquisitions cost faced see by of property, the risk to opportunistic that his which five profit or his the be many of before effectively up very participations additional in XXX% developer Island own paid also the first developer the that and area outright our generally capitals of while the funded since The of but these and cap we’ve with we’re at we million cash buyout, is accommodation assets. stabilized properties. loans of investment and same developer a for than don’t the lease these on to high We’ll increase the ownership continue is and end as disciplined execute and NOIs for assets quality Pennsylvania the some comment,

now with remarks, I’ll conclude that, and to result. financial I’ll to my Kelly things over discuss So turn prepared

quarter earnings of Thanks, share. end our by these full earnings and adjusted guidance exceeded John, reported Last everyone. $X.XX. Both morning, we share per high per year of $X.XX good of adjusted and the night, $X.XX fourth of

operating G&A XX% comp only increased continued We revenues increasing total year-over-year, stock results experience excluding while our strong with X.X%.

annual quarter night, first XXXX range guidance, also annual share detailed $X.XX. and We of per last our to issued earnings with $X.XX adjusted

with significant interest just income, by in momentum year, our great XXXX that provided bridge new a expect growth our XXXX We of the our to investment be record loan building John off core And volume. discussed. product

now significant wholly-owned rental to growth stream As five revenue in well as as lease our properties up. the continue

expect value guidance. fair XXXX we increases midpoint of in to XXX% the substantial XXXX Additionally, from growth of our the over

a November, rate. our and perspective XXXX remember, guidance the and the progress recall benefit factors of four like of into now insight impact all we back you investment we of activity As interest potential have and issued preliminary months investment, economic the in global XXXX of XXXX

through the we recent the construction received Hopefully, our of We issuance included XXXX QX investment capital such fourth rate updated amendment you including all a impact to on first an as our based our Series guidance bridge interest reflect to B, the update And on of preliminary have As to the of Series feedback from follow-on expectations quarter table our regarding finally, our our activities, comparing our our exceeded milestone of updated Page developers. the current loan the well supplement. the we our environment. ranges. as that the A, impact significant based investment acquisitions, guidance and XX

investment. closing immediate the know, investment million As bridge typical of by you of we’re the upon midpoint loan impact raising of largely $X total all capital approximately development deployment positive the our versus driven revenue guidance our of of by

increases specifically, feedback range be challenge streamline have fair the $XX to continue of from effectively expected a progress and to we significant month. of to developers types delayed of received from lowering municipalities over value fair value are significant of in to range million in $XX the driver our gains as More million. of The We $XX was permitting. Particularly a million regarding changes locations four final most $XX the development approve to projects a struggle all that experienced past permitting construction. million

timing some timing being appreciation of XX about to have five-year well progress these of labor near current for these the real Therefore, directly term of these to on associated XXXX. back general. attributed extend XXXX indicators rate ultimately are fed Also delays to fair increase in and some to value beginning to the Additionally, the will construction of since certificates interest as rate fair winter underlying risk weather shift expected year, delays or actual and basis expected construction and have progress regards expectations that later environment, inflation the value the to is recognition and times in points given impact the made COs three rise or delays. and in also of in shortages get construction the from free continue historical with norms. the the add of the CO Obviously, a our And timing estate. timing occupancy

through of a to impact said, on at appreciation. – All fair we we in our interest of that XXXX From of over and growth range fair sheet inception in rate just $XX $XX felt the debt And prudent results in midpoint results of updated million gains potential above recognized fair XX% of the million, balance that value at on balance the updated beyond sheet substantial our growth such, fair XXXX, amount our in XXXX. cumulative cumulative and value a component it investment. value As range increase one-year. XXXX, value

perform to our construction for we consistently progress here are underlying on current and our And As investments all at see with all JCAP these to tragedy, operating to the open investment. see evaluate as access have continue to we capital the business to regards continuing investment. significant shareholders, order a excited our our to of attractive mix of are long-term capital capital source we maximize in over our of do form several best to stock returns further the course Q&A. while amount we remaining plan sources We preferred facility the of issue credit in prepared Series of July, and $XXX revolving year up the remarks shares and now to the it end to our to the investment. investments. available million now all our That’s of to fund will turn A the maximum of to fund we between over have utilizing We

Please Thomas ahead. Great, this At KeyBanc thank Instructions] we first Capital from question-and-answer Our a you. from session. conducting be time, [Operator will is Markets. Todd question go

Hi, Good thanks. morning.

about in be seeing you’re you’re $XX bridge million a loans do there? from here what you underwritten to curious loan the how cannot John, context be bridge talk or a that that pretty Dean traditional ramp for question, the the here development, delinquencies in financing for the First seeing you of Can refinanced how about and sourcing know program, of off to And program, deals you takeout talked it loan start good careful there you’ve of you’ve foresee commitments? volume dollars seems and been the you deals? extended rising about just many billions out development just or I’m for being of

take Go ahead. I’ll bridge.

question, Todd. Thanks with

what situations, program have development cycle. have just there driven those And private how be There and will will already be you’ll created but just on come years. wind then facing would has remarks, in Dean in we’ll step where is development could of down in his the as developer come will and the similar fall with that’s properties his the unless term know a same anticipated, and to to may shorter development up properties from at as opportunity end the spectrum on that maturity, right in you the seen properties want ultimately during the as development when in economics acquisition seat we’ve those projects. ultimately property lease-up, the the cycle prepared maybe into done the maximize as a originally We’ve developer in to have extend And But opposite also that sales starting online, period stretch that at effectively follow construction try for supply time, the side same transitioning which so yes, developer the that negotiate will we time, the last. may you economics that and or equity have investments heavier or that to bridge investments, in they value, of what table opportunities sale. be in impatient to and to of IRR for to that deals, of to in little we’ll long loan an it’s engage want the very money the properties, some lease period us do spectrum. while a stay have been the five it than maybe We is financing and of can have the cycle, about these time kind up refusal the talked obtaining first effectively have we’ll – developer be the the didn’t markets have on really for or see a in good that these and projects to doesn’t stay in fine they

we started but bat, pretty good ramps, so volume transaction we’ll feel to our quarter-to-quarter move opportunity. going what out of be phase with continue do think lot to potentially fielding can an of so the that can’t a you’re how that and roll now. opportunity as are programs that that good. So being Because out right update is to the properties calls. far we we we the and of hard be? to just still indicator there’s we $XX we in of really going right quantify you like a It’s year new We is million that just the fact beginning guys so delivered What – to as and off

saw on are in And But bridge thinking interest rates, the X% two how interest little in that the X.X% a Okay. in accrual. bit context I you the in for X.X%, the general. increase rates of of loans, cash, higher about

program, interest financing to the but in the forward little you program, how got rate took basis you rate for to you Just mentioned, related of rates. a XX for thinking for Kelly, since And change X.X% loan of you revision bridge year. also start points bridge risk mean, are value traditional going the the the about free bit fair I the the also up – the interest going forward. and

Well, Todd.

And I at have inflationary balance rates all there back but element and our that. which for have think are over a are were very I are levels all is they return, still we’re do loans we’re stat know they combine you that that’s XX that the of what views. varying of when But look the economics feel debt And our of us mezz recession the and both getting coupon you like our rates we new proper our in below bridge and going going a investments you we term as above there’s goes relatively in be the and representatively and and all contracts period other good investments. this of the lower here rate term The various at forward, to long the participation here? guys years with element what debt you X.X% an pricing the end where spike ago. and dramatically like, to to There’s are still JCAP senior development feel investing. investment so term short at capital concerns, an rates make long we’re term longer your over concerns than

have shock facilities, due rental we we increases a participation. like, deals look in you our various rates our rise have, property which rates and feel storage profit we share rise then to inflation, absorbers will, if lot of if So at of

that’s those priced. profitable investment at And look don’t to the then at like stage dramatic of spike see for the a a really But move course, in of a way, – market if we absent case appropriate evaluate us at kind unit as that make there’s rate, priced and trench all, very with investment everything dramatically good time the if to very we’ve increase and goes this So in senior where and as rates. a still is a really dramatically, we’ll unless debt up reason we’re feel appropriately type about appropriate we adjustments. the

management one footprint. more on its floor. today. I’m interests then the begins company just and expand consolidate here and platform But and and comment here And if just yield party could Okay. you curious, I’ll to The third

going Extra managed You bunch of push and had year. a how managed they Public’s, grow the are brand offer management of and and and plans properties like third-party and are I’m just cost Storage strategy now. the properties management sounds third-party making JCAP’s now the forward it the low aside a really to business other recognizable today, a curious most – model. Space have is of business, Public that CubeSmart here. clearly most being your private to by operators for They platform XX you’re have But thinking at in largest planned end third-party about they big

speak If you to could that?

we’re with a exception now. CubeSmart property good. of as rent. all and presence properties, We’re of our with now is major today markets getting are the one have in results pleased with extremely very that all out or I They the our And virtually of think of CubeSmart the right results of

XXX being the properties first So we long a the as we’re that’s be as it for. third-party X,XXX and focused. doesn’t hoping of or the all make major know Google any have system very top, or a we’re And properties page they and management major would have they are owner good presence are on that they the X,XXX where markets they a in in have difference

with and them size know we’ll owner. a as for a Public to legacy, really said, company coming the platform Storage, a – for I all they for that’s somewhat – Now to of it of progressed with their in how along. servant I of good a the Extra think have another anyone to have a Space well has will become a at manager change, form that take cultural see

we We all open. will owners. our don’t a options properly ever having that, anticipate really see – operate and private Pass we’ll operator keep for

impact do will that you the the cost maybe could it have Got to development hurdles it. extra income otherwise think low programs. developer. on of a not third-party Dean, savings help think existing model you that management would clear insurance deals guess, do with I sort the or an maybe accrue underwriting

could No. transcripts I business, here be change as what to was Because gone later and lines mean, go today, and tomorrow, they’re won’t going that some I buy I doesn’t to said, the out on. I read rates the between mean try but those read

proper So to a now that something a could management not with loss will leader. we a fee, be continue underwrite

Okay. Thank you.

Hoglund Jefferies. go ahead. Your Please George is next from from question

Hey, good morning, guys.

might by depending along already there? who questioning. on that property would roster all will following you decision who kind managed terms it’s has property of the same that impacts by? inherit just program if of is Just on impact do your the someone bridge managers third-party Or to How line whatever the bridge you of of saying in the – else the loan of managed managers,

We’re page. same not the on

the I suggest they everything them someone for are and page performing, trying so not not We me we’re if would as by them underwrite on on we long hard but in page, properly case insist. this service expecting. manage us in we’re the assist and – if and good being it if go the not performing, of if and as be of take not to managed themselves Then easy changing way professional and it the obviously they to But the for it’s part manager good same will We’re anyway. maybe it’s on upon it. it but in not to managing full covering day. not Google of we insist result performing, first are the in they’re same they’re every If mean, would debt or location let change,

add on just to there. bit a George And little

third-party program these strange underwrite prospective kind looked come in that property. end the be us manager But and And early they or we is $X the occupancy as sense process a the deals. underwrite as as the like factors reason of underwriting these you be certificate by of properties pool. one front Dean we keep in and of right As bridge very a closer fits end, loans, of And mind the in at They and if of kind performance we of we’ve come as have XXXX. will we’re billion over deal management we can is underwriting the can point one-size advantage of initial there’s on these of evaluate. the in today, to if bridge time, they’re equation good bridge and managers considered and in in But that evaluate in the stabilization. strongly to using this people seeking of in And one any we very of all loans it’s financing will he mentioned, elements of come already performance in can the at to the been that at point all these going going as point an said no a financing, to lifecycle of change. this of like two not is that can

Okay, more. thanks. And just one

and the stock of of hovers of mean, – plans would I year, it’s kind impact In alluded A raising the around if how guys a capital future But current additional plans Preferred. plans. investment mean, I you levels, that utilize terms to all did raising the then Series hypothetically, capital this

Hey, one morning. that take George, a and good I’ll give break. Dean John and

a match facility, run our position of fund and revolving in same the everyone the pure is to sure and with credit A liquidity our page. make investments business the just throughout have So the course From perspective Series the on we XXXX. capital

of monitor to continue is flexibility opportunistically the sure for our maximum stack to sources that to markets to whatever does, to capital ultimately aligning of shareholders. generate make able what be and all window the the gives opens the various all capital So it us of to take advantage return

we this we since ultimate today, know we able making were to the we’re and the sure that here we’re our sitting mean make right I to are to and at arise. commitments being to where that what fulfill monitoring going be be mix So opportunity as going and lead, comfortable decisions year,

And we things the that and fact that our part A in credit about that us an like facilities be to so, flexibility those really gives of prudent. Series

like stay that believe point don’t talked the is up in feel we they go way value it more additional there, becomes just company earlier. in some has where there’s can current be There about company. valuable. recognized much to some We I common any mean, because also are. at as much this that time, to prices just we stock That

market think period of where it than more lot I long the is time. is leave a over it to

Okay. Thanks. the appreciate I color.

is Jonathan ahead. Hughes next Please from Our question go Raymond James. from

you the Hey, helpful. good taking for my morning. thank question very Thanks disclosure, and for increased it’s

November delayed sounds deliveries in be its mean, that pushed did fair a projections that Why delay. I your accelerate face expected situation get the similar XXXX? delay. you like a I know given XXXX. They value I delivery the for But change Dean, to guidance from take and construction in XXXX due and bit delivery? of So up some slowdown XXXX where could actually we into see a do year think from to where will product mean, couldn’t due

Yes.

Jonathan. You’d Hi, – have to

going new have that’s the and You’d activity else same. be the of other words, the level to be to everything would remain though not the assume start case. same, In that

they last and trending is that of to harder starts trending It’s works. the think down getting just a of in two find And a being XXXX can our look company found find in proxy sector. in you last down? whole a just lot be And site It’s in quarters you’ll submarket year. someone fact why kind you. can and be where get that down that whole for lot or completed two they’re you a see XXXX, going to haven’t in I started a before to the think are – would that people or I to want that site a harder at you find

a Texas first sat down and little development built lasted we from I we build I a – in but down point years, I to Florida the this start of we most longer, say with do this this and Raymond time started one trend our four market And that’s and of to an talked were thought XXXX, XXXX, And in pay in When I’d James which XXXX. year you so, to happening, if cycle and additional the starting year, three being the do, enough being January about we this than bit XXXX to bit starts in maybe cycle. rather, longer little guess, you cycle year last going and a would cycles the over a the cycle course, half, dramatically on. what’s

starts, Yes, going be rap that just year next of are driving course anything that but in down. to the number start the So than some else. will over more

down value underwritten few Has that’s change double-digit single-digit And Okay. has due been your stable was rates, cycle years developed and fair at the cap that book the a it maybe you like progressed. number in earlier. yields come fair. to turning demand high today. strong in then have And metrics sound stabilized calc ago product sounds underwriting return on the your mentioned all But acquisition in value there as to any

possible, early run. want and the some singles, yield. and just told clarify this. we’ve We good double use we’ve lease and But me we fact we go extending another said, we only But always let digits, that performance. The what any back in don’t we’ve just just ended home turn our we that to to want only up. that made think up when year. into don’t underwriting we is triples what is we underwrite jargon don’t triple, might baseball runs, you year into through there what on that X% change appropriate for recently want when we And any team doubles never we’ve adding been we’re X.X% this had still way All unlevered probably want to home

selective And is that. the so that market would being insisting more much because upon

go dramatically thought don’t your you into up going to to a doing you be going You you facility get. lease rates, is you’re get what not – longer may the that ups to you’re can’t – and submarket want a entered are and

we is lease books the are as same, about the are five little the stabilize But look we out a numbers more we’re years at six what four, and bit do. else So underwriting, rates putting today. that – up I’ve we we rates something expecting hope before, the our year said our adding all-in-all, development the out. But critically far as, of new to to on deals, so

just kind And and for jump I’ll this George’s great. That’s an me more questions off. And Okay. then then extension of earlier. of one

where but at the funding Would revolver after tapped you look and to from from selling funding out the will will long-term this year? place trying guided putting you from the where where come would fixed I’m stock will come money in doesn’t that, just Highland assets, recover? debt, past will be fully money to The if drawn. in So understand near come XXXX,

look balance we’ve of couple right Yes, – joint we’ve we you appetite the – while is very that debt, increasing There Heitman for out world be in done buy going We’ve to a the appetite, There’s is properties of an venture. markets XX are ventures. the a the types have Gen a Jonathan joint in in of we high new. now date done equity at already sheet. world to private there our big done if interest are equity side V right to private there top preferred, common, level of we

So long is right. pricing as the

to three access things ability available than but Because to we in kind things, to is really of few kind months a going So I we’re advance. more move change you it’s what of be hard evidence. think all to shown so as much, demonstrated predict capital

keep do to depending on upon don’t So share. time. I shareholders, at prices we’ll best continue stock to table stay for options the earlier, what’s circumstances common believe are said the a and all at are going $XX we But as the what

in maybe is to say it loans would to term put look at you Which five-year you trying pay down revolver? the

at owned of but kind lot flexibility. we with on We that it problem give is can that could that is you assets. you up a Yes, of do, when do something look the

various then then you’ve that that loan term limits assets rights capital five-year you at facility And interest decision on of and and you markets good already your and time, our the a better made loans a mechanisms credit off if can’t hedging the bad exposure that can assets. we’re very those so advance rate being getting lot use inside equity punitive, on get a of put number significant pay without whole term you

feel We like, we’ve I going as always just the said, again company. level open, those we over-lever all balance we what So sheet. to debt we’re – certainly we’ve that said being on to keep don’t want options to of sensitive this always keep

quick just me – Let capital access attractiveness It’s capital all available, in years, one to jump because the In of my of cost. what this just Jonathan. at been matter – has comment, a sector. always

what so And going just concerned direction forward, of it be. this not which the of, fund from be costs to capital and all are about a matter it we’re at going having to company will comes

I enough. the appreciate taking fair Okay, for Thanks question. time.

question Please last go Capital will come ahead. our Corak And FBR Instructions] from from David [Operator Markets.

years up I those, three it’s a from that your the But close of morning, But many the approaching interest. saw buying think XXXX on or are with could your kind years in that of we – spend and it Well, what at that, would remarks. Good that kind from we the assets in start entail? Appreciate sooner can partner’s look two of timeline prepared a CO. than when happen everyone. Ocoee? comments let’s hit later with How like with certain

how David, want what up we to momentum. the leasing we to well give look properties they’re leasing is, time that build generally to and some

years case. in three kind that two you look bought and that to and assets of the you closing Alpharetta And XXXX projects, at Marietta we if the so And May years Atlanta them. referenced, CO a hit typical two those of have be for just would four from CO, you area late

XXXX, year And occupancy performers, end those more lot they advantage of was And take in years until we like the executed is really Ocoee, there. that developer a probably they in the everything did we’ve zero thing a high is that the the out the not like done joint very to to just other the good are to the And the One There note in will as those XXXX. in of case, mind the purchases is you complicated of yes, there because, deals XX% four we in year Fleming to XX% as the we if more Island come in want and portfolio, have us comes XXXX those two little they with of project, is that So well go at work to very venture. equation when in transactions and from from assets, where we if year. thus to for them. And own sure, in of own the the about CO. kind we those want a pricing, like look far out thing a available. case, timing rest that keep of – to them Heitman performers

kind most of they’re the and not really so, realistically, well, – and assets but line last in half year on looking they’re before of came those yes, lease-up XXXX last in at you’re a of lot And available. just become of you’re those doing

one, and us? we’ll go there balance the that our in maybe Now, of discipline – have we’ve and two for do over great could a time, possible, those features evaluation price and that be Yes, the point shown maintain the today. through year that compelling at

that just of more disciplined, cycle or All a Is the of $XXX speaking at or right, development fair the some bit. the little discipline, stage there is guys you that pipeline down being pickier, enough. of kind then? is which combination being is Well, million,

high us both. the definitely Hi high, I’ll Yes. one. mean, keeping as – by are definitely bar keeping it’s and before, bar. being that I David. clearing Yes, sites said take is It’s that our it bar I – fewer

property. as that. developer storage build disparage the we – no facility. who cycle want generation think they had – much, are much the nothing and have it’s before. are on piece property Again, expensive in more V a to complicated, – but sophisticated that small pieces so homebuilders, to And fact just don’t before, I buildings than a of want a ever These build to homebuilders, buildings to no these And of we’ve said people owned

sophisticated too. time, have listening developer are transcripts and and sophisticated developers this a we bankers like are calls And and this reading so to

don’t just so overbuild going the we’re And cycle. I to think

In fact, starts. point this it to time that certain and it’s down case am on at to very the of turning for I start be in time.

little bit that’s so And about.

of how hold when Any more look don’t three that XX enough. I move folks and of them per sticking opportunity with is acquisition top new of that fair just by quarters markets, picking the on to as into we kind being that, intend guess, are that the then cycle kind mentioned Okay, big And developments to kind term. things you’ve XXXX? really completed long XXXX of just or Dean started guess previously the we in the for at up if deliveries, cycle,

there that? X,XXX about cycle it’s people facilities, There for a Yes, development, is I I because to is, maybe, some mean, good years a silver I’ve going to to out be this are if there now. lot, talked that go so X,XXX through lot. properties for XXXX, and buy what with lining so really a mean are you able two are whole properties, lot about access what’s capital is and those facilities. And a nice end to going of this sale. be of

Makes for me. sense, guys. that’s all Thanks, right. All

question-and-answer the to management any Thank concludes floor comment. I’d you. This the closing session. turn like for to back over

Okay.

all Just call looking forward going look sub-storage managing with calm, keep I and Good stop year. that sector do to we you. out left this to very assets at you much. that things well want across. you here today, to today, our slashing on, And day. rents one off, is is notes carry next and very there get Thank my I of

disconnect your for participation, this at lines your time. you may Thank teleconference. you today’s concludes This