Apartment Income REIT Corp - Ordinary Shares (AIRC) 4 Nov 222022 Q3 Earnings call transcript

Hello, and welcome to the AIR Communities Third Quarter 2022 Earnings Conference Call. My name is Alex, and I'll be coordinating the call today. [Operator Instructions] I will now hand over to your host, Lisa Cohn. Please go ahead, Lisa.

Thank you, Alex, and good day. Cohn, Communities. am Lisa Counsel and is AIR of name and President I General My

conference forward-looking XXXX differ results this risks be judgment, be These During found call, may are materially and including on are statements today. SEC of discussed projections from management's uncertainties, based in a what related which to our may to subject and description expectations. statements XXXX certain we can make Actual filings.

funds Operations; Investment today certain comparable Chairman release Terry Prepared come present. non-GAAP John part These financial of the We and Keith from Committee; Considine, our will as reconciled most operations. full from published defined such Kimmel, also are co-CIO members the supplemental Beldin, Officer. also website. of Other CEO; Financial GAAP are and and earnings discuss AIR's of our of management the Chief is are measures our in on remarks information our to that McGrath, Paul Property our President measures

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

Thank you, you We your of in to Lisa, thanks AIR. in my interesting times. all live interest for and

been at REIT, executive a As an success. this a year department has great

for FFO, talk Berra, low I was of them As future. talk in wisdom In of range XX% year the the tough pretty to next shareholder, from one right me per on for of the I'm be any It's impressed the of the I I or that predictions, also I already share. $X.XX call, depending wide to REIT especially are was struck tough also year. thought this make about might help, put to economy. high by the the AIR by estimates this preparing but past to it's year. other interested tell When about been Yogi want a mindful instead they've investors, to they and

here's with how and and an dependent it in year be But into controlling the I work where speak his great I So their well. leasing job excellent shape team FFO and do how apartments executing and on macroeconomic is can matter AIR no shape, conviction. next costs economy. translates Keith look will in at good conditions. will unusually

So the with we're earnings Most structure of business set you information call of and AIR the provide mind, also the prepared about will in that on economic different how effectiveness we out for of business. scenarios. focus the to the to execution release model the about this AIR and call

gifts more matter for is exposure growth class the inflation our in such we rent have conversations on mid-XXXX, are sheet, for for almost of a higher for the same-store Keith's mid-XXXX rate both that In higher twice to and where before portfolio. in in revenue prospects John success debt XX% the of There and are to John's is price a and X.X% yet remarkable portfolio up continuing the years such next end through up for For exposure Keith's questions up also to managing the of the for the earnings and next that three maturing transformation of AIR longer. by example, continuing the above the with outcome few million years, same-store, no point Paul investors, revenues owed smallish geography weeks. strong as, two XXXX. of diversification second two intentional Each and by than innovation $XX X.X%, in AIR except the growth addresses closings of model. $XXX acquisition accounting where rates where, no and portfolio growth the for portfolios, the sequential and and were distinct reduce Or not volatility. planned Or economic few almost rents is XX% highest results interest and million in interesting half business target next is might what average flat, conservative no year-over-year and allowing proves release Keith, piece similarly in of its XXXX with facts of portfolios, productivity if year balance other it are proofs in sequentially, year. managing will also and of and other we're in inflation years. caution but display collected. Mindful Paul's that stubborn no Paul It's excellent might costs Midwestern be almost the XX is provide the example, 'XX

inflation answer owners peers annually good cash for growth all because rent of ability and is our in operating of costs. conversion AIR can While the rents leads control expenses free news to that apartment AIR and to is raise G&A flow

minute AIR. underway rates already refunding what question of to interest After which increase. little paid this our interest or property Second make be ago, small will And sales month. year if that down no mentioned the two revolver, be just will to until a outside continue had $XXX a to maturities might for mid-XXXX. later rates years we answer, completion next difference from next I three The million

but recessions longer. answer Fed even recession? but Well, AIR there's is tough, Our is always the then in are are And a a if succeeds question, ready. interest what rates fixed causing AIR the for third

current income customers. with occupied Our ratings apartments stable our credit backed highly of have and by high lofty cash rolls the flows rent

finally, portfolio affected when Our on and become so Philadelphia a price more X.XB our high-quality benefits differently. are across and government about diversified students companies, There's customers markets. tech to sensitive. Washington's national is portfolio recession is high-quality And focused likely be

I'm I'd when await events. estimates of attempting operate every on Head not the each the as mission guidance my and us. how residents turn culture quarter It joined this will and But show in is to optimistic have the no in a whatever we're be together, macro to may in and meetings and and whatever are guidance of to designed an We directors to managed of them. Paul call collaboration my I XXXX and over And AIR like With beyond. team two engaged days one the and macro Keith based week. of full in an ready the XXXX of attracts sense me through AIR giving for may whose thank working investor energetic Board So, collaborating, to all AIR subject in earlier spent is the Kimmel, you is is future then more, Keith? the subsequent year and teammates, confidence who many in of third and Denver My today and January, AIR here we optimism, best the how through gives manage retains AIR. is events bring. even today. What of

Thanks, Terry.

third our The takeaways of leasing share I'd was year. over the the quarter another from four now XX% quarter complete like months. for past good AIR, with volume for well to three

was was as XX.X% our has exceptional. as XX.X% third rate Sequential call, typical transaction achieved revenue First, our X.X%, noted frictional expectations quarter volume. to with occupancy in was and to each rates July September line during grown peer-leading today. October, last peak occupancy We our growth triple anticipated, in XX% the In vacancy from growth month with growth. faded. up up In XX.X% on blended quarter revenue XX.X% with increased

relentless pipeline fourth sales through Expenses My to the throughout and grew real innovation. percentage lease is AIR take second estate. quarter. and most operator towards away be point continued team offsetting of productivity the points And we from superior pressures year. strength XX efficient basis are continues multifamily last just Our inflation

are operating be flat controllable year XXXX. with More importantly, roughly anticipated full expenses to

Our resident quality expense performance customer starts low satisfaction, leading with turnover. and to

basis for turnover increase Our XX% is to a from basis our year in has recognize we of critical and service Ultimately, team team, AIR's XX-month efficiency in point highly year. compensation XXXX. in that satisfaction productive employee XX.X% expense represents point one control. We of and net that led a ago. expansion operating this represents mind, trailing team. satisfaction of third our by margin including continue role the customer invest a demonstrated XXX a to a result record this improvement in from With XX.X% turnover and low XXX This quarter margin. plays

be year-end combination of think and our is margin business processes, our our Third, resulted communities, of and team outperformance. physical continues impactful. We a enhancements and the which our revenue technology AIR Edge in to to the model, staffing

Our impact is acquisitions. to most new notable applied when

This and in our for Class for element market of normal trends of communities the well of with a to success. a XX.X% now same-store made the XXXX than dedication seasonality, fall be and our and your to who built average acquisitions, of five of well which may resilient our with McGrath, revenue any broader occupancy members, whatever X%, Committee. during Investment while our XXXX the XXXX our growth choppy John begin offset the rates inflation growth scores team, plan some our change seasoned have have AIR balance while all our the is Despite is AIR starts headwinds was of Our focus economic your to around that, equipped. and has remains AIR in the come with up exceptional ahead year. initial and team And above had business thanks the the and of and John? waters any and predictable most AIR doubled at anticipate rate there's improve And with and hiatus, for credit revenue prepared navigate great Edge. to an high a are And continuously efficient brought earn-in ratios patterns that projections. back beyond I'll to rates on of brings. My sequential foundation the quarter that innovative strong. continues Fourth, from will residence, over XXXX, AIR's positioned which more turn are floating talented this are platform, blended seasonal portfolio. Class the of Chairman our an we XX% ahead. all AIR with our in to October year important two-year uncertainty market to challenges serving our on of call and the drive residents rent-to-income XXXX

others turbulent. Keith. And the showing Thank is markets of can't experiencing. stress. signs I economy The and unusually what are transaction uncertainty speak to are you,

provides environment. we about best That year-end, prices assets best me down said, This by of billion or so the $X have the acted locations. continue another we is in in of to set the and We beginning market, deals of closed coupled underwritten the valuations million market at transactions the $X.X current for are approximately insight to hold seeing XX%. of another billion into On close will $XXX average, with have January.

property pessimistic too not However, and the rates. to of due increasing. in that be likely more increase reduced the offset We downside be We this for rents see substantial income, increase cap property is the be in this the property we that stock as decline values, think an values and AIR think buyer. about further perhaps may X/X risk in opportunity a to market will liquidity, which about considering any

cap we expansion the approximately rates, to seeing from for are year. beginning board, of bps of across As XXX the the XX

absorbed to continue, perhaps As cap a robust expansion this will largely pricing I be year, early to expect not reset. and mentioned dynamic have do growth. ball, decelerates previously, NOI crystal I this next expansion I continues a rate by

we current cautious. conditions, Given market remain

XXXX allows We taught ripe changing locking capital. in cost conditions funding are in with experience to are by turbulence opportunity. for periods has agnostic that of growth Match terrific. feel be economic our relatively equity of to market us our prospects However,

at our peak track market AIR top As conditions has is and execution gives mind of high-quality adjust we demonstrable acquire us threshold. record and return competitive fire provide target of to fluctuate, advantage to an for for values buy lower us of shallow and simply pools This with closing. many competition. opportunity assets a sellers, Certainty a discount

distress We market. see are of the to signs beginning in

However, not to opportunities it arise, yet is strike. ready systematic. we are when If and

transformative to to the with are described earlier, well our since sheet, and regards Aimco through AIR separation are capital and else. to in Keith worth we The properties perhaps more completed our balance us have work hands importantly, culture than most in allocation Edge, our someone execute disciplined operations, as strategy. they portfolio, the Finally position

We activity. no transaction goal for have future fixed

and of acquisitions, diversification the improve and grow the including allocation, However, continuing we risk. same quality political optimizing while household criteria measured expected rents, to accretive age, such our price time, portfolio at condition and as and as capital by by point, to income, physical market through regulatory rent average customer growth, asset AIR credit the median expect

we opportunities through primarily driven be within will identify growth our portfolio future Our markets. core

are we also normal demand and top-rated to in landlord due will look exhibit invest However, drivers growth that to friendly. submarkets high

Range and acquisitions in will in Florida, for Triangle. the of Front Western the Research We look accretive Colorado

recent transaction to Turning activity.

in $XXX the in newly for quarter, Lauderdale, XXX property was Florida and has Fort During acquired homes we one million. XXXX. apartment constructed Property

We leases at development. for properties to Aimco also to by added $XXX canceled existing four million leased Aimco for and master the AIR owned AIR improvements. paid

during purchase quarter, to the million. for $XXX Additionally, we Southgate committed Towers

South feet The XX,XXX and acquisition square Beach in apartment January retail in early homes approximately located is Southgate to space. has and is of expected close XXXX. XXX

cost Southgate spread IRR being Florida Edge an earn through than capital. points consistent more of to acquisitions, and enhanced with trade be our by Soft funded expected is the a XXX than over paired will the and unlevered AIR XX% basis recent of a with greater is

under evaluate to shares back than $XX greater price the and at approximately broad at allocation million estate. XX%. buybacks as an analyze of just shares share real of I per property to of X.X% bought X.X IRR acquisitions, beginning the addition have share a as of representing or long-term average year-to-date, our strategy We outstanding look the we In through capital opportunity year part

framework any the cost in our attractive equity utilize investments, business, trade spread we'll an capital. and are of we lock with As of in paired our to

the forward, of with date. expect additional any to and share consistent buy evaluate balanced allocation Going and buybacks, new would capital will deploy our to continue opportunity incremental we to to a portion shares

we quarter. completed On third the sales front, the in disposition no

XX-month the X.X%. properties in six located closing sale trailing cap million, approximately for month, of later However, $XXX England a New we NOI anticipate rate representing this of

I'll about externally. capital the accretive to in Financial our Chief even are disciplined Beldin, Officer. bullish that, deploy times. to We trying ability allocation are confident We over call future to our to and the execute capital in With firmly remain and traits Paul? ability committed turn Paul highly

our you, balance Thank third for elevated AIR's sheet, period quarter will potential I dividend. the and balance and our John. flexible conclude is balance our economic and comment brief year uncertainty. results the positioned a a rates of discuss sheet interest Today strong with well and for of expectations on

the is X.Xx remaining leveraged reduced within forma to repayment properties John. the third Aimco quarter of low, and the leverage closing by Xx. First, reduced anticipated balance the this target by England is just area Xx sale range New of Pro note further in our month's by July Xx of sale, of discussed EBITDA to

quarter Looking slightly now with result approximately forward sources to will maintaining and and keeping repurchases EBITDA third year-end, funded The of leveraged the on expectation basis primarily repurchases. uses paired-trade Consistent AIR's opportunistic is anticipate fourth of leverage I X.Xx. in and our be leverage share to X:X, above our policies, a our quarter year-end previous a balance in our investment levels. share be increase

subject short-term debt fixed borrowings an or to or Second, of no already Other we revolving XX% rate than cap. facility credit rates. our little higher have on exposure is to interest our interest

that to floating. our We facility proceeds month. revolving largely on be are on interest rates X% later the expected Borrowings sales property this working fix repaid the remains the from to of credit are

no have exposure debt Third, we little to or near-term repayment.

this credit The expectations estimated We rating facility, few We issuer $XXX their have and an unencumbered the supplement $XXX with to quarter have we from fully to And maturities expected our Moody's Moody's. for S&P., properties Fifth, mid-XXXX. extending available by our available completed, in October, on private from anticipate XXXX. third both make billion. be the million $XXX million sales, expect of public credit from Fourth, revolving property BBB pose of million of credit before maturities. will $XXX receiving liquidity proceeds we month. fair balance we $X about cash for ratings received and S&P rating to next flat weeks million applied debt will results rating the our for of loans of and later an in turning abundant to Once value November no debentures. of and

in $X.XX $X.XX due of quarter quarter. to fourth was Third the above occur originally FFO the transactions of anticipated share, guidance timing per midpoint to

time end NOI basis we expectations. we raising XX.X%, third the the growth of points guidance. than year, the For our beginning of XX same-store At midpoint, expect high year of now NOI this higher are

than of to outlook basis cost lower a low be are points of expenses operating year-to-date. improved negative and XXX Total now Our beginning were the our such XX control controllable is midpoint, to result expected year NOI expenses At costs end expect superb Keith's points. basis expectations. operating are grow we XXX of the between

to and expectations maintaining higher-than-anticipated FFO our and year share, costs. NOI incremental narrowing the and full midpoint offset G&A per are $X.XX We $X.XX be by $X.XX between for being same-store

are are While expectations the these lower to rate G&A for XX unchanged costs costs GAV points run our than to or expected at are of Similarly, our commitment. increasing, remain basis equal FFO midpoint.

Board and taxable first in believe of that, dividend individuals AIR you release. our investors, more share. now the the of Lastly, investors, foreign to quarterly dividend open detail to over makes as can peers attractive cash the the for With compared stock to will characteristics found our Alex, turn of Directors I'll declared it our corporations. our and tax be earnings taxable $X.XX question. call a per such We for we Further questions.

Sachs. Our Instructions] comes line question Chandni, now first your today [Operator from for open. Luthra Goldman is Chandni from

non-controllable expenses help be drivers this particularly Guys, well think the expenses And -- you as understand should What continues? then this going especially environment obviously, next controls I know, if you about year. are inflationary extremely expenses been property year, understand controllable also XXXX, controlled of we you taxes. applicable next mean, that us could into please have think year. would how

And turn Chandni, think together. it property give insight Keith. is we tie to Paul start to I'll to is and then then one you some about operations, this the about when I'll I'll think that of things we it it Chandni, then -- resident numbers. it the and ultimately, quality quality, where follows that it the expenses, really with with starts is you find quality. turnover of with starts resident satisfaction that our low team. and our -- reason in customer Because

talked control. And stay stay longer, residents therefore, number. members so, We turnover customer service. us really The with have in exceptional driver longer, my to us big more prepared expense to as XX.X% that giving team about with and the remarks, I we that's think our

the it year. Now what will may comes may but this our year can more does paint emphasis than not It in. or will in not, next inflation be will happen costs a that's where

record track when Our over us, it this that site. that we on is past and controllable we focus about we be Paul? peer-leading of the Those I put up think particularly years believe plus, will continue to XX numbers. will for expenses superior think an demonstrates area

Outside expenses, the Keith. of items. you, we have Thank controllable categories three non-controllable

been First and you is as insurance difficult, know, has are costs, insurance market prices the all increasing.

provide where I of our those we'll specific can of of us our are but XXXX. would so And were anticipate we reimbursed the assume cost January, them to XX% than insurance I expectations by And next category. to in around costs, higher in second About be you while they'll Utility higher be guidance be residents. our year. costs think also costs

bottom effect, muted. estate taxes. the will be there last impact So the particular, will you about, Chandni, a but around in real And is be asked piece net line

midst the in process. we're our so planning And of

XX% specifics, increases but portfolio about it's I which year. tax to you factors. property is to located One, California, X% to think per of Prop going give different ask about in limits and not about so to our I'm XX, subject would So two

usually increases XX% of that remaining then often lag. portfolio. although pace property increased growth, offset value similar portfolio, an NOI to So of And to the at at a the in our for a provides taxes important

we've very put And likely so this the strong bit pressure year, particulars, a we'll but of provide little year. next so more of that NOI growth XX% and had portfolio will that on

have the helpful. guys a buyer to is there stress in signs my remarks prices question, be you're noted of seeing your in How much That's communities prepared all to see that obviously come down those or market. you about buybacks the more for in sense you for think very follow-up opportunity we so allocation air How or that And at make And you that where point between it buying regard? what pivot would should in your opportunities into how bit think would has been those focus assets? about to aggressive a lately? funding capital beginning

Thank John. your is question. this for Chandni, you

I opportunities we say I'd our when buying. am very on XXXX for First, look bullish to

but across opportunities Some are AIR, other are the negative they leverage of provide market and for things problem. like because don't buyers such on worried that us, systematic, dynamics the about in have the distress again, will we sidelines lever as that. not same

us all, our makes par changing conditions. those First trade relatively agnostic of to philosophy

all at an look we basis. Second, our unlevered on deals

I have I an And match my at appropriate improve have capital my locked portfolio. and cost opportunity so I the of above in and is our I as have as trade I long see an it, can spread of look to quality and continue to

I looking say to we'll existing and at to durable -- and primarily I regulations. remarks, to in landlord-friendly that markets said that primarily where due how be markets. other to we'll deals, core But high as demand drivers our look As growth look exhibit be we we'll looking my would

be. we've look and everything estate end XX% run through pair about where of we all the model. XX% allocation gets at recently what as and say use estate, the to we'll trade similar of an will it model would we bought of to capital the I allocation that we've about say, future could shares. we through to of to seen As far of acquisition course, most day, And buybacks run our looking look cash as and things, what real would would accretive And real at our change. But our expect I will the the I be

Thank you.

SMBC. your open. Rich from now comes line question of next is Rich, Our Anderson

a is repurchase stock. cap math. I you're to So on much with think Paul, rate, understand four-ish type than at implied the to going the fully up go sales the that mean want X.X%, I higher to rate you the said. your funding leverage cap asset don't I if I

the would is September point So why of in sales. already ending uptick those that have leverage? you an it Or X.X% assumes

purely from stock And gets buyback correct? that to the so, X.X%. impact the that Is you is

yes, through parts. walk have correct. it I the Rich, believe me But you moving let

million of as stock in acquired, October. So of September, the by end acquired we million That quarter, that addition under in another of second of $XXX we acquired the has $XXX we about supplemented of repurchased September. through shares in million had the another to $XX stock just been also

XX leverage but area cutoff, September the So weeks. it that our from to include next benefit of doesn't New in reflect are calculation the repurchases, the sale full the share the does few assets that of -- England close expected

brings particular payer at trade looking this Xx all is sales at of the then us we XXXX. maintaining by X.X property up that is haven't that in mentioned, to bump as that So but without leverage And any expected that's pair something sales, leg the are in X.XX. to time, X/XX to -- leverage John that incremental additional at And be will that about repurchases, and a to but this Xx look year-end turn, share but in we'll moment completed what accomplish of trade, range. forward to committed our we

in I I my be environment. guess this would mean question

-- And game presume You that up, I see leverage not that's right? XXXX. plan will ultimately the for want down, be to trending

it see on Xx unchanged, and as are area. leverage range, in views Xx see to where that Our we we it a

Okay.

month all And levels comparing some Second your and competition I to point design. rent by two question, of exercise REIT ran of turns an your to a your XX% above ago did markets. is out or all in that that think that your rent. It market we includes AIR at about XX% competition,

pair through so and You've on. trade obviously portfolio your upgraded your

you of if you are do though do vulnerable the alternative all, that you for with arrangements living in a that top And a might estimate? second, already looking average cheaper at people a First are their to that with on are the at spot of market put guys. you feel as

as might color your go agree do only do place as would the they you and if you you is peers. cheaper that thing observation, great. about think a any don't What of be disagree, much And so, leave you that offer perhaps to or some

those Rich, to our we I'll residents it's speak John. emphasis Keith. I'll I quality that when of think those particularly about residents over down communities. the turn to think the it And here the start to I'll and living the higher really prices. Bs of quite the incomes rent the averages all, are that good. As in places we But XX-XX over points, and it but are in and those are And comes then first the in are have $XXX,XXX. and price in the fact, at at higher the the place,

And Bs we there have to go be our able so very to They concern that, pay any be don't nice and As. then, we course, to look along are that. their should ability the that into comes And when the have a the something blend so of high at in like credits with rents, in positioned the John? -- on good very spot economy. we feel we're well with

little people My today, the is that increase investment valuations property reset Yes. incomes, future opinion to appropriate look to substantial what levels. rents we'll and pricing is the in and in what And what will may see add prove believe bearish I'd don't the and be will like. I will increase that, wrong rents to more that is continue perspective are from an on

Great. Okay.

common trading But in, customers, to that high a Rich, less more and down deal there's lower incomes, a it -- really this jobs, credit about And without to more hear customer there's younger, undertaking recession better chime scores. your income, to want just with affected activity, -- we're customers. prepared good who's is likely too, to I Rich, in less And they more you're If of so want we sort is right, I then voice. have settled the I sort point thing. Yes, it's are of both Keith's older good it settled, just high Terry. that dealing with be dislocation also of moving.

the in me mid-XXs good. to said ever is you word where first the Terry, business

So, in I resurrect see to release. happy was press itself this that

is pretty good. It

Thank you.

comes Citi. from question line next is Joseph now your Nick of Nick, open. Our

the little seeing others. of experiencing obviously You're seeing there concessions Are to you're the the introducing across where normal maybe in markets a slowdown you're relative any seasonal that less October, you're pronounced than sequential markets? kind on strength pushback other pricing or some

Hi, We're you. seeing hear particular. not Nick, anything in good to

about what the and a space XXXX, say marketing you us. Boston and and hear is rent And people seeing someone colder would seen move I looks lowers to is slow weeks down have we're you less new $XXX call to activity. I Philadelphia really which it's -- XXXX, we really out what where start then First, tool there's Christmas, a applied. Halloween, two months, that's put rent hear I when a concessions, when less. also would past marketing places in get just you What Thanksgiving really like when to Nothing on what or the it, seasonally free the it's tool. pre-pandemic, you that more, getting unusual anything we get -- saw that whenever they is Whether whether by into

we'll good is would exactly finish where of And have our the October fact, up. what and quite we year feeling In where we're anticipated.

How still with $XXX million the execution is close? there on just that associated to of And is money you much what asset risk expecting are you those. of kind those sales, hard then And any see down?

is Hi, John. Nick, this

say is as of couple money down close are to the lot the a low. seeing the they expect is And next that while I hard weeks. I on million risk have closing, $XX about And to far possible, very point, as deal. they of at -- I'd substantial risk First, this anything in sale

you. Thank

Haendel from next comes St. Our question

Juste your is from Mizuho. open. now Haendel, line

So question Keith, a guess for I you.

October. year-end. you into continue met that feel Expect good just about You to

you color can maybe So more that, are you year-end? November And add in where what you new some and around standing today? near term do into for expect renewals renewals

January, up, then melt look and in October in, forward, you're is comparable points Sure. of into it, seen. that to happens When we've think out the We will back February renewals, at going course, renewal around to Haendel, XXX would when see what They're which what then, pick between seen work to what spring XX% of through are we've basis call we a March starts year. somewhere the historically. around usually going that see numbers we And we the going and what April. we range. look that expect is here's the you happen end

in Okay. near-term assets? rental the Any Bs distinction trends recent and the or suburban your between expected urban As between and

well. as rate increases highest two I'd markets that Haendel, then seeing of changes. the I we're market-specific. is well. quite the those more achievement, highest in of and be that achieved I becomes the two Beach two we our rental as would examples places the doing is South what no are Denver say markets which And that solid are seeing and it urbans And And we you Miami DC Los -- is then, are country. of example different are the and in when suburban our have maybe would other look both office give more there We're you of that being places course, give sort really like Angeles,

at nothing seems us and to that changed that's unusual point. this nothing, So,

expect payback to by And potential you're how near think the Great. year. into assume maybe curious here? enter means bad you're additive secondly, bad earnings. new recession debt that And and we reserved I is thinking and go on you as further next a fully then debt then any mentioned about and that In release, I incremental net my bad no debt expectations. question press to second have I term

of Thanks, whole conservative our approach This Haendel. very a cash past time. that basis the is COVID, Paul. since appreciate onset We've of accounting taken on a due rent. question. to basically we've been the really I And

AR has are in that what the of those XX% ended so improving are is day our September our of our timely. happening up continued AR balance balance, to so collections our come or down paying because And rent residents gross has for

rent. is take, And of reserve. of fully essentially primarily That the so payers are under balance of folks is our $XXX,XXX almost AR non-timely give comprised reserved X%, that or

year. debt, second which down of that XXX the the was XXX is team It is believe And around and basis to question third to our before will amount results. to QX. bps all points bad extent are was has be bad to gross bad on down quarter So trended assistance seen will in have future of what collect consideration continue. so, likely trends the we're that. period we that additive feel payments debt working Keith really through any and that in the I good And It in successful about his debt, doing and trend we government came in that bps hard XXX I quarter. mean the

recession, roughly that further to to XXXX, type during points. back a look And then we basis at time in at would that our there And continue absent if recessionary bad of GFC expect that expense our would improve And to a about and saw from and is so there. debt is XX basis revenue previous I points what from environment things increased go the XXX experience. I

came stayed it the duration back of that so, way through the And down. but recession

a what really happened during much more COVID. was than it so, has And muted impact

of next question open. John Kim comes now from Markets. [Operator your Our BMO Instructions] Capital is line John,

your On wondering first, there's what why or just in acquisition now. model, lot markets when of pursue acquisitions decided right discovery a trade with the price to I'm dispositions? came South Beach you paired

portfolio. cost can capital egg looking I dispositions, John. our guess the the been I continue way of little answer bit, chicken at the to John, we've of improve our the would that where ways is but out quality and can been this that we've the we lock in in a we so is market,

quite back including been And through And done different separation initiatives, I this we've the look stunning. so the from number to a the we've to our about when of transformation the portfolio, results property work sales. have done now

decreased Our by average age has XX%.

increased incomes rents by by XX% our XX%. and median average Our increased have

do, any quality the business our we continue of we want that look to improve that want portfolio. to So, We new to continue to trend.

opportunity and have trade. that the quality do a portfolio, so it I by a if egg, trade. of won't I and If have that don't distress chicken acquire an to the improve no I'll can I do means and And same under opportunity

acquisition? on you disclosed Have cap the rate the

And can't trade we pair I do the at what -- is point, all can you No. have -- we identified. but this expected that I tell

about that be than XXX spread greater business, to XX%. IRR We an of or that a be going an on be in expect again, capital. And is it so bps we're more cost to we'll

follow-up And balance sale on split assuming up my the you'd is of And it's assets with the had up the to is I have I'm to $XXX on only market that Okay. which dispositions out And sheet, million. also, same-store are Aimco. in thought mark would for your pool.

So, much wondering I same-store results, how impacted maybe taking even out? was or that them benefited your

this John, is Paul.

of so. rules assets criteria of the Aimco Boston On do that with our the England from our accounting accurate under all New because -- you reset. area that properties is held-for-sale Aimco, not population the $XXX million about or to are the in correct basis do the And of the separation the

of our year. it's basis to our those Aimco regards in and our models historical about same-store Then purchased from March assets So pool, in expectations was disposition this when originally. in the this since

that expectations part been time. our of since it's So same-store

on Sorry, that for sale. held

on tax accounting not up you but So an took a it on basis, basis?

was for different treatment tax The purposes. and Yes. accounting

Thank you.

line John John, is from comes from now Street. today Pawlowski for Green your open. question final Our

lag Like color see what X.X% non-California NOI in math growth appeals, comments property a of taxes. this appreciate there year, the timing just year markets. because property the increases that because year? the be curious and we blur could decline for could great. I down the next would and follow-up are any Paul, see property does on I'm taxes in incremental of we year-to-date on the potential taxes down next

appeals don't growth current next appeals. did growth get what you'll will benefit property particular to see of this John, guidance would I around not smaller. large is Well, core not think have be I in be abnormally year But the want year our think we numbers, the at of because point. I some if our rate But tax what year

you few to assets a in Triangle. transaction in type are if I market what heard Raleigh John. And questions then if misheard And get the you so, I of Are this. exposure apologize Research for right at looking now? I Carolinas? looking

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quarters? entrance or Okay. in being coming in you press But have Should something release the contract? to do Raleigh close under an expect update the we

anything quarters talk but too coming have contract. to I I out, the as today, can't no. of don't far under

sorry one assets initial you But could for cap if those I'm very And what New cap Okay. got rate provide I on ask distracted. just this, last can and Southgate month -- deals the rate me, the John on England and and priced? just the

Yes.

points again, I that you time. to or XXX answer at the we no. Gate, IRRs that you, in South I XX% the John, on can So greater have about our and told basis I once to can't is than point expect like tell more provide a this spread. on

in cap priced looking early XX quarter. deals the trailing at On of sales, Boston These at rate on X.X%. the we're the third

for further have today. questions no We

the I'll remarks. So further team back to management hand any for

for one with days any good or you interest call so XX Alex, Well, Mary. Air. thank you, us call you to of look We seeing your and the XX questions. all thank much. a forward Please many weekend. on at Thanks of in Have in of about

for Thank today's joining you call.

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