Apartment Income REIT Corp - Ordinary Shares (AIRC) 10 Feb 222021 Q4 Earnings call transcript

00:02 Hello and welcome to today's Apartment Income REIT Corp. My name is Charlie, and I will be coordinating your call today. [Operator Instructions]. 00:17 I will now hand you over to your host Lisa Cohn to begin. Lisa, please go ahead.

and Charlie, you, Thank good day. XX:XX is General Counsel name Lisa Cohn, and President am I of and My AIR Communities. XX:XX judgment, to the based During forward-looking statements we call, this make on including expectations. XXXX management's related projections conference are These a of statements our filings. which uncertainties, in description found are certain be and to SEC subject risks can results materially what from Actual may be may differ discussed today. discuss such as operations. XX:XX measures, funds financial We certain will non-GAAP also from that and are website. in reconciled to part comparable earnings most full measures information AIR's defined the the GAAP release supplemental are is on the of These published Prepared Considine, Property Kimmel, XX:XX remarks new Committee; CEO; today McGrath CFO. John Beldin, Terry come Chairman of our Charge Paul our Investment from and In , of Keith Operations; our Other of members management are present. also

be follow during which will available session Considine. to I XX:XX will our remarks. turn question-and-answer will the now call Terry? Terry the of All prepared us

you, XX:XX an excellent I thanks for AIR. of all in XXXX. entire Thank team interest the begin Lisa, your and an and thanking fourth quarter AIR to you want to by outstanding for

report operating way will invest XX:XX teammate important We cost made control multifamily your be completed in I'm The Keith properties satisfaction your in December are of market proud results your optimism even be margins. commitments delivered emphasized XXXX skills and XX:XX peer our when we will and year shared to for your expect AIR. began again great achievement reflects today. As commitment. an business to customer effective better. spokesmen your this XXXX the year was and most with and We as the property and simplest efficient leading most liquidity. operations public we

we with electing and portfolio report, our acquiring commitment we X increased we FFO the by faster from to share report, our as upgraded Board higher XX:XX to corporate balance Directors initial substantially growth As We of expected off refreshed and directors. qualified X% Paul our and selling sheet. diverse will And added John and per responsibility will and strengthened new our bottom returns. guidance highly our properties long-standing

positioned objectives, priorities As well week. Directors our meetings are its last by for a at Board result, execute the we including of our XXXX specific to set strategic

and financial simple risk for growth the We reduction on will believe a focused foundation to organic low and the continue execution business our and efficient predictable model of risk. First, lead business. more consistent low results, long-term risk

what that markets describe team detail. will and We to enhance be peer Keith Keith XX:XX competitive improve Second, capital to Edge more work disciplined leading continue through platform, our portfolio are the the highly in entire allocation. and our best-in-class. apartment to that know we'll AIR committed already AIR operating calls We are

welcomed risk forward rated be we maintain of Blackstone to XX:XX new attractive will but We Third, our relationships to This broad cost in expand We issuance. and we Last grow, for can increasing opportunities debt partnerships. and good balance additional beyond invest intend sub-markets, top our invest diversification our leverage we do spreads earn targeted through equity where dilutive will we funding transactions not only in by and to range capital. so neighbors. sources and low sheet. capital. as flexibility year our maintain the inherent Fourth, of deepening building look year equity We'll a partner.

and to as for of We continue Keith. their their as competitive well alignment that Keith? high shareholders XX:XX call importantly over turn And cost with and I'll with team finally to employer shareholder of be and risk-adjusted reporting and objective overhead and citizen XX:XX of corporate choice expectation the activities achievements. as stewards provide With and will our with our many a recognized degree community transparent goals a capital. of We'll advance our address all to to nationally longstanding good exemplary housing residents our low goals our of and returns.

The quarter successful be even we XXXX outstanding, and XXXX better. will Terry. anticipate fourth up Thanks, a wrapping was XX:XX

As points from Rates up high new third occupancy new XX:XX the reached renewals up expected, continued XX.X%, XX.X%. blended the to basis signed up of XX% XXX strengthen watermarks with quarter. result fourth rates and lease with quarter rates up XX.X%,

basis the of the personal obligations. due points upgrades, fourth was XX.X% in The the up areas as an with was us platform, XXXX. and implemented. with to debt our constellation as to continued to Our points low recent hardship same-store and robust technology most XX margin, XX financial is offsetting stars. exceptional X.X% Strong basis X.X our were from our largely rent residents surveys XX.X% XXX down XXXX. results fourth the customer a operations XX:XX accountability. AIR and basis of and of operating turn assets record their year-over-year of turnover importantly, in physical was portfolio in which continuous fewer includes XX:XX payments Simply concentrated This translated Revenue staffing innovations engine, continuing service due same Net scoring and for assistance with with unique the the has than design, delinquents remain paying edge from Angeles out AIR of contractual integrations consistent edge without a low quarters passion those number continue points trailing of during Bad better XXXX. full with record to increase at team our nearly controllable XX:XX the the XXX XX% improvement Expenses X in and XXXX. Los where month in up collaboration, The quarter showed culture lower AIR our costs put, in quarter XX,XXX enforcement us AIR itself reached of expertise, income XX quarter, the above for in the fourth of legal of XXXX result, excused quarter quarter edge. renters government of from move-outs than consistent into even the lower for quarter. And XX.X% a edge be our expenses marketing period turnover. which down a improvement X.X% manifest analytics our respect, and brings

Our XXX leading more by to unrelenting even for sector in margins AIR and highly acquisitions edge. points, it's accretive. all AIR quarters, peers edge basis least by million [$XX] created today that at by XX consecutive interim demonstrated is have the profitability than making by commitment (ph) the XX:XX impact The higher incremental of adds been equivalent

rate current the as which increased quarter improvements Playbook pricing increased fourth prior X% quarter in continues to all Florida rate increase an lease. and month and higher Pembroke financial our the XX:XX XX.X%, across new quarter, the we results from our at teens Occupancy acquisition up in the these of XX:XX growth aspect improvements year-over-year communities. the Signed better average fourth that We our than to expense. and XX.X% nearly acquisitions both best At earning to average and leases an In In January, low We increases we signed see in expirations. results strengthen. increase occurred, during than pricing has in already going XX:XX the expect and $X.X on was the growth of and prior quarter due have quarter. markets XXXX Washington acquisition our a as all, lease blended fourth Center our the and currently from the from a to we As of AIR portfolio. XX% the are an four new forward. we City Renewals single our leading lease. an In in implement XX% is portfolio. XX.X%, will lease XX.X% exceptional were same-store a X% healthy AIR in rates was DC, occupancy year-over-year upside represents from Pines, excellent expectations. strong fully our across to Washington a for power. prior with At month rates lease. be increase in in same-store our million there and loss high rate of or new that and anticipate during exceeded implemented our fourth fourth growth expect performance rapid anticipate Our all-time with volume further both and loss revenue, industry In every in above playbook Center $X.X growth Xth, markets, from XXXX are leases XX% in prior XX% is were better XX:XX activity sales the of all new above XXXX revenue most to rates lease demand portfolio, our year million the City prior same-store XXX growth the lease, acceleration from still lease, at lease leases DC

revenue That to We controllable resulting We XXXX DC; growth acquisition in XX% faster in mid-single growth X% portfolio San with growth have the all X/X all members. the including AIR double-digit expect digit net operating we Denver in and thanks this expect have and than Los Boston, Miami, XX%. robust growth and Diego Area. and Bay expenses, of X% to single-digit revenue portfolio. Washington growth said, Angeles, the in flat XX:XX Philadelphia; markets year growth expenses anticipate income will growth to revenue of operating high to over XX:XX course outperform our same-store My and team

quarter drive our great continuously to our serving a has your Your this success. dedication to improve residents made and business

are XXXX. the now And John? and John look the wins truly forward I'll XX:XX over call our You of Chairman with during to AIR I to our building the new edge Investment that, together upon Committee. turn McGrath,

of Washington York saw quarter. a Angeles for in and delighted progress XX local a and averages. of the During X capital $X.X achieve quality the in higher our deleveraging, we our XX:XX that annual sales units Bay used XXX% entered you, another an we of In add local report of many target $XXX by lofty apartment $XXX our significant with portfolio. look we communities under target billion rates, of portfolio quarter, of for million Los improving markets, closed our will approximately improving busy homes fourth sales affiliate approximately DC we growth located interest We of portfolio billion Quality located set growth higher of first made million basis reported, very apartment Area properties the for AIR funding of increasing laws sold in of the relative venture especially gross and and we allocation achievable in XX an I'm contract. had approximately X,XXX expect by of the of support predictable successfully And XXX points to XX:XX rents, with when the Completion and rents we January, Blackstone markets platform. Diego, look In continuously Virginia our average to in three and has of for Keith. $XXX to market and liquidity. Thank apartment increase proceeds XX:XX front. the expected we joint property County by on be proceeds operations, averages, the of an of San And New few growth to a have to we sales completed aspects, and We we average goal price about across for XX:XX into the basis regulations. our XX% goal with a increase $X.X of and our market our end first as rents points. acquisitions, We to million. rate compare in in growth strengthening the our today previously to X,XXX our months communities $XXX local located full as and we markets City expected diversification In points. in to $XXX XX:XX transactions our to portfolio, economies look million. we

with equity quarter capital our included X,XXX the apartment acquisition X.X% portfolio expected we greater land development of acquired XX,XXX cost office X homes in space the not parcels X%, these the in Air developer. sell development The vacant expected suitable fourth properties XXX where free at current expects NOI cash IRR and and for price undertake DC The to flow discussed feet for apartment million. land and rather is parcels, will homes. NOI cost in commercial Importantly, a of current a purchase last raised a X.X%. a cost XX:XX Turning $XXX of and lease of XX:XX MSA located of square to Washington trade additional result call, third-party a but we a of during will FFO. long-term the paired or in have as of acquisitions, to of to growth in X

properties long to in in X.X% to using we form increase example approximately with what increase like, of properties transactions XX% NOI under increase to already time X% fact agreement. our the expect are short, accretive XXXX, the share to in sold. a is reflecting includes as leverage. term AIR properties third yield million of increases holding the in of financial In share. expected amount IRR no is what breakeven spread edge to that of year, the expect XX:XX Turning NOI the risk FFO This over with XXXX, to limited acquisitions, business X.X% expected the sold. the and totaling an a roughly the FFO some X $XXX We what guidance of is per acquisition that we yield approach X%, from a IRR sold, long-term $X.XX over per adding the be This spread

We goal allocation capital and we fixed acquisitions. for no committed firmly to further have disciplined are

maintain top our diversification will spreads not by through plan grow, or outside earn prices value. are equity do invest leverage We capital. in advantages, of XX:XX market we'd to target to to rated invest team by as funding where dilutive issuance. portfolio we about at and considerable for such so we We we attractive will properties cost non-market Keith's create only acquisitions broad sub-markets, so but prices increasing for look our can elevated Given transactions range for opportunities and multifamily cautious

will future expect We growth opportunistic. be portfolio our

our especially in Southeast in XX:XX and Virginia. With existing Florida the that Mountain in call Beldin, markets, Officer. the our Chief I'll the We Paul? to primarily turn and Paul are West looking to from over Financial

discuss will expectations delevered XXXX I Today Starting balance XXXX, sheet. the and our financial our results, sheet, John. Thanks, with balance XX:XX dividend. for

to were closed billion remaining to million will of John to equity paired remarks, expected have million trades The property planned complete XXXX The average $X.X pro $XXX we property close debt, quarter. to proceeds bring lower X.X a sales sales consideration X.X X.X% used $X.X of remaining to mentioned average weighted X.X are net XX:XX later note] X. and X.X%. fund As this $XXX (ph) to of forma to term bring his property billion the our sales will leverage The sales. two-tenths completed in average rate interest Net The pro repay a year-end net than turn EBITDA leverage is of a to years to EBITDA before target. of and net X% [AIB of X, forma and weighted of our weighted rate it. interest of

grade NOI for XXX expectations X.X%, year-end AIR possible our XXXX points the was be maintaining The of Turning and of same or flexibility and activities edge to Full Our increasing into properties, of X% of and portfolio. debt by million, same-store a expense X/X to only year-over-year additional requirements quality high deleveraging strengthen full guidance. service of X.X financial $X.X transactions EBITDA. with that of results. Next, more The or interest forward deliver ahead flexible about it flat billion to beginning edge year $X.XX As leverage and $XX X by guidance share basis funding investments, up X coastal same-store anticipate year low reduced NOI Improved balance S&P. provided refinancing growth guidance midpoint million totaling John XXXX borrowings, ago. times investment is AIR our our by If basis $XX of considering the will mentioned, rating while BBB have million. AIR result of and peer FFO produced by pool these NOI ahead above financial unencumbered year sheet. investment making metrics growth the created Moody's year by at ahead made approximately XX:XX average. full year go approximately from from debt our The grade initial points per are levered, XX:XX led we low lowered we we credit $XXX REIT our positive cost the with multifamily likely coastal them XXXX rating XXX growth. XX:XX

XXXX representing midpoint. FFO For at per between we growth XX% share, $X.XX the to per $X.XX be and share forecast

securitized contribution $X.XX NOI expect those a the of partially XX:XX maturity from on XX% planned our primarily (ph) combination due miscellaneous offset a dividend. result expense, We our income Aimco's property to of to of due to from lower acquisitions and the a for old and interest same-store quick our be few $X.XX the addition XXXX loss XXXX Last, other items, debt. [BPs] growth, lower comments interest traction from earnings by growth NOI from of sales, incremental

in As gains taxable AIR's resulted dividend planned, and $X.XX X/X In a as basis of AIR's XXXX, per was refreshed a of as X/X capital. tax-free share taxpayer-friendly dividend. tax return capital

sensitive, versus For worth XX:XX of those dividend full-year of XXXX In tax AIR dividend each Directors the of dollar FFO. dividend, after who average. ratio payout more approximately XX% of investors is targeted a Board the and our are tax XX% setting AIR's peer

quarter quarterly the in paid queue. dividend from For we an that your will time question. turn XX:XX the cash Charlie, in X% the With per the to the questions questions. to the first declared the $X.XX share, two per for first I'll Please quarter Board first over now limit it of increase call of for dividend a you of open XXXX.

from Thank [Operator you. Instructions] first Citigroup. of Nick XX:XX Joseph Our question comes

Please open. Your line ahead. is go

here million was allocating it -- that Or the rest the that million team? in a first Michael giving on really employment you the grant just the comp of management that your Did can to agreement? stock terms XX:XX for signing any Terry. was forfeited, and $X of Good you you $X.X accepting was Hey, there your agreement? it's receive less new the Terry, up comp there. on Nick, anything topic with Bilerman just morning million $X.X or

wasn't XX:XX effective so And me, the easy. we the lot while be company the public Michael, most $X.X It and efficient and company. million good to cost cost, high, That's with want properties it's morning. to it was the market liquidity question. and to way it the multifamily shareholder friendly was was committed a but about being a of about was own decision

XX:XX So correct? received in you for there that wasn't forfeiting comp, anything return that

There is no whatsoever. No XX:XX makeup. of no adjustment, quid Absolutely pro not. sort, quo, nothing -- that no

as XX keyed basis And G&A, $X GVA organization an happens commitment comp, said there, that have future, and to I you're even subordinated think at million assume to forfeit points you language I G&A and points. the to good to is your XX:XX And to some efficiency to would then don't know going target is subordination, your disincentives own XX I members assets? have to not but basis know though much entity what looking get is especially supplemental XX your capped point what XX points of it's of sets to then and basis going terms high and this in do who into that's wage basis the with based grow in as happens simply at there if grow the the maintain and the keep the comp growing guess some what to get rising points. in on? that it's inflation for loan I it team we markets what the be

are Michael. there there, questions XX:XX multiple Well, in

as them take me I heard best Let them.

expect business. be to certainly The a issue increasing the because don't value we expect of continuing that. I don't it of is, the first

or expect crystal the want decisions hypothetical forward. obviously, And but event moment, committed clear got Board comp, and are term just company of company. may for that that to put free short make I've operator a for the if and interest so, the some is the going XX:XX might me best shares be low-cost some the of it's I comp. in to and to being hypothetical, Secondly, I they more customer that efficient But have X to first right circumstance, come, million the it partly don't easy we're X -- than because a important to customer that million that's the

just sets party, to who value is an you're -- that XX points basing basis then going XX:XXOkay. or Is the that And outsized third be that on. management

measured it Well, Green is numbers. against Street's management, we XX:XX but

we've the that property that by G&A provide lots we delighted exactly rather no a And I as the something number easily of in some or what Green contrived it. And order some wouldn't we the it, Green thought cost you a management. Green you been with but looking fact in through -- it that be it There us so So not from track through it's of that. up also not can numbers, Street, walk can in Street in walk or sale would commitment things know in there you, XX:XX in it so see make to inclusive sure be is, geography are for advance Street do such. respect. benefit was will at was the at to filled Aimco has and and example, by I'd all Way any to going picked measures a so of make other is ways for that with But AIR we by around been than more so of it's it's to costs signing can

time. Aimco. hard you Terry. change. to still I for I thanks as Well, the XX:XX same And refer do thing, the It's to

important All Old It's to show an It's with shareholder stay company, but thank commitment the aligned us, that questions. to lead for you being by with way XX:XX one right. subject. is sensitive those example habits, of to a interests. the not

glad I'm up first. that So get to

mechanisms the place. how though the from something it's it's ensure doesn't work It of you. know consequences to Thank elsewhere have doesn't going unintended obviously just and want I exist it that so to that and we new. make Yeah. we to right sure coming it's XX:XX understood even

that. out, turns it address If are there we'll XX:XX you so such, if Thank much.

of Anderson XX:XX SMBC. from question Our comes Rich next

Your Please line open. is ahead. go

morning Good out there. Thanks. XX:XX

when size and tax free? mean So exactly you I dividend not sell until the when capital defer of your First you right? your mean free it at -- correct, on deferred, I return shares, you tax of time it's -- right? taxes all, calling tax

on other like it's XX:XX depends when circumstances broadly a little an advantage. die, you It but bit

XX:XX Okay.

I mentioned you the know tagline important in get into that line don't that XXXX. tag is, just more here and So Terry of want so portfolio too. most simplicity We partnerships to the But -- on. To portfolio this have you willing of maintaining what an total in -- the simplicity the degree the a eye are be partnerships to a model multifamily percentage space? of as part toward again with

XX:XX Rich, that's an excellent we be mindful forward. question and have one to that of going

we is more negative will, there we that the weight, that you might confirmation transparency. think partnerships if to has can level that it contribute a where demonstration a adding Obviously, than to they very a we're plus that comfortable of have moment some being be is for [Technical have today. for Difficulty] I And be simplicity, but by simple more.

standpoint that parts from keeps low, clear less becomes forward just on this then could of how And whomever, through -- a seeing latest thankfully got but from Omicron wave in the an of if kind just people Okay. be we we sense to may your Keith the in come it business turnover going that issue the of of actually my is we Omicron or get subside. moving to the way there is your all that move, XX:XX more it? friend second see turnover perhaps question But willing runs, all and pandemic

the know those of can predictor don't I if be things. a Rich, for thanks I XX:XX question.

here think tell business made us open stand I out I you. been unique for would that, What we've every day. in is what Here's place a

actually happened customer relations we safe they improved that and our engaging with and we environment because customers and of us. we a regardless found to and the that pandemic, uncertainty what during So could wanted and that a open stress of sure certain be to think has on be to an time have our community count customers have make experienced of way

we And forward can to same us. so, continue the as expectation have of look they

guess, the that's up question? turnover year, of the course the XX:XX you Do I see over going

as sense and that in creates our some of customer credits Well, residents had had that goes a pointed remarks, of others that satisfaction, positioned would a at these are attribute exceptional way quality and have lot the team my individuals. that lowest that XX:XX incomes in that hurt we to our very and community on out one I through of that other focused stable I resident our communities to that of we've stresses prepared of XX.X%. like a is turnovers

So my goal maintain that, course, world and and of see in Omicron. of is will as changes we hope that develop -- turnover sector-leading things continue that to if but low the we'll

has and can if add I endorse said. Rich XX:XX Keith everything just

the will turnover season all We off XX in numbers take have to an table. trailing our are but increase have frictional of and vacancy, leasing when seasonality months we a

turnover than else business that can colleagues So retention how they can look lower every what his anyone see and during and Keith have produced the gotten each we'll both year, COVID in a before far greater you at that. it and and better and and is you'll and see they've long-term trend COVID where continue

Thanks. good. sounds It Great. XX:XX

XX:XX Thank you.

John XX:XX of The next question Green Street. Pawlowski comes from

is open. go Your ahead. line Please

I'd Keith kind for we or saw to similar the what over CapEx entails? and The Thanks has understand pre-spend. like smaller, what million Paul years. the in capital $XXX specific the to are the plan portfolio enhancement that projects gotten very It time. total younger but better dollars has XX:XX gotten of

would little So bit a more be helpful? color there

for to thank Keith then if there's like he'd to you that question. I'll over Yeah, XX:XX start add. anything turn John, and the

most be spend that anticipate and apartment or the single of million we single-digits These projects been expected largely out, about vast we homes, yields low enhancement concentrated high do As is year. XX% of on capital in that spent The kitchen for point the correctly of enhance types double-digits. $XXX in vast, high majority a the that in next in you and of to about IRRs doing are interiors the number the generally and improvements. years we've bath achieved projects are of that type

and well. very the earnings they're very by our our the benefit as the are these residents expected accretive properties make to future and value for of So received investments well of

to And so, spending a our year-over-year. market and think Keith? strong a we this opportunity in we large area have increase

XX:XX well I think Paul. you've covered it

going kind to XX:XX running of So, think total we're a per expect? I five per years on in I three be the unit. mean, reasonable to level a home kind structural of next to Is basis. over that $XXXX

XX:XX future actual our It's both achieved. dependent largely year each year we upcoming returns for exercise John, the as upon in very undertake and all planning years.

back our clear, projects any So we're projects. we If pare achieving we these start not underwritten to it. blowing we're water, we'll returns or the if out of be returns, stock double and at certain might some

it's all by returns. driven So

could Maybe XX:XX at, could let percent Keith, offers or what of Okay, a us know you’re last you what renewal sense today for us out one thanks. increase? you give standing from one me.

XX:XX now, -- to to spring. would getting XX% about John, the we're a think the you that be tell results early quarter likely what XX% similarly which would in expect range. will is, through I of the into We I would is that that first balance

very much. Okay, XX:XX thanks

XX:XX comes Sachs. of Luthra Chandni from Goldman [Operator next question Instructions] Our

go Your line Please is open. ahead.

X think Thank with with properties your you I stabilization out Hi. you of X us in last remind guys of Aimco. for said XX:XX Could mean, where relationship I those question. taking that time basically process. you my are are those you

relationship year? evolve income this that then think So and can then interest that how about And how we million here? $XX year next from should

excellent. question. relationship is This for you is much The Hi, Thank very Chandni. XX:XX Terry. your

which X overlaps, collateralized debt way. paid mentioned the loan multiple a are the at AIR to will from its it’s --I'm they steady obligation well maturity. that reduced but be you years about at be have AIV another being one The in and sure full, it to has will We

in then, low much how do Got to a we And peers XXXX? mentioned lot And I loss of terms that's you of XXXX, to lease, XX:XX then, in teens. think your your think it's How have sort about that expect something of mentioned. in capture you it. should

you perhaps some well? So I on XXXX could was as throw if light wondering

have drives the occurring. majority business is, and to what the course, our think the for into And about transactions that of those we it's low in us, when way XX:XX Chandni, -- teens. really it's June of are And to September. the it XXXX between is, happens lease loss

you'll its way as the half you that XXXX. the and about find last that of occurring will give us, balance through third earnings getting start XXXX in to those it, then call think will into the transactions so, And earn last

I but this we to you going would Keith for And COVID, forward. see will the you that Keith, coastal look and the [John] two perhaps time the the our back peers. see back being passing team add of operations what and of to that last years significantly the coastal John, narrowing of in over will And peers. versus you -- again, out-performance and last until got the ahead it in and performance the out-performance his if look guidance years, is, number -- XX:XX (ph), if relative you over gap

at to So and just have to over likely you're you look know when frame Keith, a bet win. that time on

Thank is so the Chandni This much. XX:XX you by way.

XX:XX Thank you.

Capital Markets. from The Kim question John next of XX:XX BMO comes

Please open. go ahead. is line Your

with provide occupancy could that you if on the wondering was you're peers. at clarity I than morning. on Good higher some more you. your XX.X% Thank XX:XX

I of think of about due that that do And the factors about to contributed for seasonality, year? remainder occupancy? talked these some the how but increasing the trending record turnover what see other to high you you

John, on XX:XX -- bottom have really comes question. this It relentless for down to our thanks we the the focus line.

of come reduce times, on and -- turn in, rent whether times which a I there and reduce in rates a question lot think about rental but we And customers vacancy reduce plays loss. is occupancy focus retaining how so, costs,

look you quarter, first get play time. at occupancies. of high is course, think look as one peak balance we think of into get of XX:XX we the of what's when the accumulation As we then, XXXX. and things this we And we into similar those sort together at forward into see as so coming the we will will all rebound And vacancy it happened, frictional season balance but some, in will the see drop will we then that of

future say it is fair your been occupancy to rents maybe you've since to on with But leaving that XX:XX introducing periods? some more November, in upside loss lease for and focused

leases -- XX:XX leases leases. what and the actually And an I really January, emphasis we question. from from the from actually want how go transacted earnings quarter of you'll the are versus of were say John, blend growing note I'd thanks goes on the and indicator to our which leases, see signed the X XX.X% on new there for XX.X% release fourth will forward go you is XX% in XX.X% rates, the in do not the XX.X%. only in renewals opposite to signed to page XX.X%

we we all you but fact, even categories. January. we've And as you'll in look were raising raised increase So forward, in them note not occupancy, in rents actually did X further here only

mentioned to growth outperform in assets that MSA. you're how higher not portfolio on And being are by XX:XX DC, portfolio you just that same-store would probably which XX% your acquisition X/X, same-store of your highest markets elaborate revenue. the Keith, Can these Okay. Most be achieving is you set growth?

and the to pointed at our it's others. I year-end, XX:XX this question. John, I members script thanks would but operate about opportunities Well, than identifying for in really seeing -- particular team better

the and And ultimately not the push we've and been a more residents, we able and retaining occurring, resident not improve to that in into see to have we've the less are way to has move-outs nimbly quickly way there's that only that communities occupancy. move so, stronger experience that pricing find been rents, its power but only able

at So, look you're those, right. as we

to achieving the highest Some others. not might of compared highest be the may those that markets markets, as of but some be growth growth we're

revenue does confirm, same-store achieve to just revenue to And any enhancing CapEx not? include XX:XX or this that

part capital underwrite acquisitions enhancing yield revenue Paul. expectations numbers area. all of our some our XX:XX flowing expenditures DC Pines quoting. we're We are and in and That's Washington actual through Hey, costs John, planned the and those both did this that the is Florida Pembroke

yes, short fully answer the So it's is [indiscernible]. but

Keith accounted XX:XX but enhancing enhancements, rate, the with revenue operating outperformance. primary additional capital to you an it's and material benefit excelled to going in The more. probably are for, is transactions it's a it's confusion leave in to John. and which is Yeah, want occupancy, for There difference decade at measured costs be in but not fully rental terms -- that, about I these don't of to

total capital of investment enhancements a million were $XX XX:XX Total $XXX. on about

not XX:XX but part. you helps it it's $XX the so important $XXX, go. million there Yeah, on

Great. Thank you. XX:XX

XX:XX Welcome.

follow-up XX:XX Joseph The Nick last Citigroup. question from question a is of

ahead. Your line is go open. Please

Michael can it's time, to have worked come to margin the pretty again. landlords to supplemental I at Keith which XX.X% just income you publicly obviously efficient even I of all back the how I and Hey, you consolidated say lot margins look utility over but hard and XX:XX in would that your and respect wanted Bilerman statement, definition margins. a the and there's traded guys different the own and you to the reimbursements improve are team before get

So apartment enhancing you margin netted XX.X%. out is different. where which The sense at REITs you to really margin Our GAAP, Schedule on is not look all is is XA the report. obviously XX:XX that that what the

So calculation look to guess I the the how to around details there do in provide and so at your items, And ambiguity relative are is more that you peers? willing expense no you to that? revenue relation line

have there's for everyone in specific that any know if don't ambiguity writing questions I but XX:XX answer see. Michael, to specifically we'll them you

in X. amount that our quote quarter XX:XX detail disclosed schedule are margin supplemental might If every we on add, I

GAAP there the inclusion you expenses. re-compute X between and you're property schedule of and So the the is number the difference that can management quoting math

the XX:XX is utility the a margin. higher Right, but reimbursement major driver of

but details the know it all been, the not initiating in I that's peer. comparable so to specifics. And has

you apples-to-apples. when not it's quote it, So

are XX:XX that have help and our because we margin expenses utility reimbursement me that for we are customers understand have in Just our your in question, margin.

Correct. XX:XX

which of in you is up those are revenues when face included grossed look it's the at in up, So right? GAAP They're all income the statement, the the and grossed right, expenses.

it larger a lower take number, you a margin. when So revenue to comes that NOI

those Schedule to XA the all out, You on all sort peers. store operating taxes as numbers, management insurance details are to then all growth we and and and provided real portfolio in but details to property and maintenance, well reconcile on in the specific able the up of both have to build getting net the relative then your same your be back numbers as the property don't net not estate and the on

all they actually You say speak peers, margins will to they are not say their your far below that above. yours, it's that

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address as accuracy to you We as heard but I'm question we've not that, XX:XX or a but schedule, or exception believe yet the if to the specific communicated the that glad that, to to have in question a we're reliance. otherwise

and me we'll it to let deal you that others. to specifics back So with and get

thanks. Okay, XX:XX

have We from XX:XX Haendel a St. question

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open. Your line is Please go ahead.

of Terry, McGrath the a XX:XX back [indiscernible]. I question, just Paul Keith, to Hey. California. portfolio you had for selling activity Thank and going here, some of just net out

And your enter us form near-term in be of outlined new you you're you've exposure in the reducing if [indiscernible] on are the kind some remind are of there where going now Thanks. to exposure. looking bulk? entering and looking Just you market? some it terms to your then and at, markets Is thoughts of so, California end you calling of be would

include time But in California today we more investment we we outside in do a might. friend. by the It's pricing will really of multiple Florida hear as a Southeast it's likely compound to Philadelphia, -- But Washington percent those answers. and in California we in areas Tennessee good Georgia, need XX:XX Miami. going in the Carolinas. primarily in may but we beyond or California course, my of generally is will your is may Haendel, question. we not today, an probably a goal that are our decline and to the which of total, Boston, outside have to of are, And include There if have we'll substantially California but don't individual increase to we portfolio. right and it from that and lower the growing a trade, voice Denver, over specific which be interested where markets

the that's that for IRRs And apply better here. Okay, imagine XX:XX certainly looking parameters helpful. long-term of

renewal rate that up as over the with but that new here months last have slowed. follow has maybe the follow-up little widen just renewals. of So we'll a for question, I bit seen few on Keith spread out you versus

your in curious next the you. that I'm embedded year couple this year new for Just versus guide or on renewal? over the on for maybe spread quarters what the on of prognosis Thank what's

be about a market Miami way accelerating to thanks for Haendel, more it's pace. news is spread market, look to we through in by are going our renewals different compared balance we we will When really it be rents at that, blend. it at of and it it, ability think loss earn may teens in see in low peak the the to end, we the where on when but be lease think into go throughout be sort XX:XX season. question. the to the because Will it and comes it's as look that's see the we much at we'll that there we a that The some

the XX:XX guide in Got for debt, sequential of payment uptick did some it. And bad have on the color one this breathlessness there? And what more of you maybe then in level you quantify year?

your from volatility received there within quarter-to-quarter of some inherent assistance bad it's Haendel, by XX:XXYeah. the of rental state agencies. driven kind from fact payments timing is is question the debt, primarily in

during had we $X.X million quarter. believe, And about I the received, so during the fourth quarter,

next assumption For of $X million full we for about year. the have year receiving an do

payment by that And so individual. in and is because always it's there see some upon we'll where amount, dependent lands variability highly that

So much higher. I'd next to lower becoming that see year than amount be happier

that, add localized would I Paul is what a circumstance. very Haendel, to this XX:XX is

very high they're people of a pay even vast that they've high bad have standards primarily have rent by a portfolio. very majority municipal and if credit have issue where debt Angeles the payment low we the We and very said It's Los to unaffected. don't ordinance for

it's and they Paul state the creates that the and then describing. an volatility from So is create that offset --

pandemic, as we'll and people the the be moving ordinances back corrected normal course. reactions be think are to from the our will to I away

Appreciate it. XX:XX Okay. you me. That's all for Thank guys.

at questions further no lines are time. this on the There XX:XX

Charlie, of your want to XX:XX on you I your for thank I all questions. thank Well, want call for you to help. the

well. with Matt If Thanks. please and Paul together Beldin O'Grady at being call forward or just to me to free you. look Be City you questions, or many have of feel further

today's concludes Thank This XX:XX call. you for joining.

lines. may disconnect your You now