Apartment Income REIT Corp - Ordinary Shares (AIRC) 10 Feb 232022 Q4 Earnings call transcript

Welcome, and thank you for attending today's AIR Communities Fourth Quarter and Full Year 2022 Earnings Conference Call. My name is Alexis, and will be your moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to Lisa Cohn, President and General Counsel of AIR Communities.

You may proceed.

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

on SEC statements socioeconomic description be drivers, call, make projections uncertainties, related things, conference a statements performance including filings. to market management's expectations. found certain XXXX based and These current trend, this can other subject judgment, in of macroeconomic During conditions, which to our among are forward-looking are we risks

from what materially be discussed Actual differ results may today. may

We non-GAAP funds will reconciled measures from earnings GAAP information financial operations. most full published are our supplemental measures release the discuss and that on also certain of website. such is in the These as are to part comparable defined AIR's

come President management Terry present. Keith and Co-CIO from John McGrath, Paul CEO; our Officer. of of are Financial Chairman Chief Operations; Other today of Investment Kimmel, and Considine, members Beldin, also Prepared our Committee; Property remarks our

which the All of us session, will our during be question-and-answer remarks. prepared will available follow

will Terry? to Terry now Considine. call turn I the

Lisa, and welcome on you, of all call. this you to Thank

posted XX% of to web of our interested and average. calculation. highest than higher be revenue might the designed peers. XX%, information past confirmation. on peers conversion you the year AIR XX%, by this efficient margins invest rate our in way to peer our is highest for into public properties. ownership the provides The was free AIR At operating far the flow. AIR The page among cash review highest to among be of And are multi-family most and has At your

COE, does do up years. rent Keith other the Operating revenue all Expenses declined in XX same-store year of growth XX last past owners But know prowess it? and by actually his was Keith XX%. than of the AIR AIR's the How points owners, I Like is that inflationary good. other basis more most Controllable unlike ops economy apartment foundation team. One was

A years active Roughly portfolio of two our billion sold John management and $X McGrath. second the the of about purchased John times apartment as team X REIT. acquisition foundation past assets. XX% his assets starting is the average is in of and

of XXX growth points. the the same-store The XX%, NOI The at Class basis than has overall acquisition income properties. the about times and rate about growing size, the of faster it's by of rate increases the growth XXXX XXXX net Class same-store portfolio, approximately X.X operating outside same-store same

Miami of AIR paired January others AIR John's seen dynamic trades fourth can good can portfolio in the of and A an the quarter outer without XX-year-old activity, good suburbs growth of in the almost leasing and now apartments ops for seasonal February consistency example be example the slowdown how new in fourth in and seen A mid-rise quality be Garden in trade Boston, revenue quarter of improved Beach. faced.

portfolio with how to part zoning cash supply. dynamic off-site protected apartment public sheet invest like location of where Paul's neighborhoods attractive oversight in high-quality balance is costs, disciplined a little activities revenue REIT Lisa's and shows floating of converting also combined from or mother efficiency in any growth It we ops Good make or nature management, for with to debt greatest the makes free and in rate flow. and some new to competitive residents on and Highland,

Edge manage will John develop balance risk, will abundant exposure upgrade cost limited and - And low sheet systems, Stein human liquidity. XXXX, same. Keith interest select to keep and score Josh and AIR's we will his the of Paul with to retain work look magnified rate for them. satisfy important hard capital, more team Gardner and best accretive residents plan the maturities, priced acquisitions safe for culture. John are to corporate Lisa and year, leverage and Looking by our will this whose of capital. the our then returns most long AIR precious

They're line prepared longer, year. Keith different that both. note expect and Paul afford can affected raises AIR of the conflicting higher inflation are stock directions. market borrowings only market rates, customers proven decent pointing costs. and their because about floating Fed in debt. the and from interest If I has AIR bond rents, higher for the views control economy has X% the what this little bottom continues rate and to is If is

incomes than turns to quarter sales transaction the down, property John in latest propensity when AIR averaging prove demonstrated in resilient a economy markets source If upsides capital platform. to renew. the invest is the AIR scores, and ability to have to the difficult, properties greater and high XX% with and $XXX,XXX their from added credit with Josh residents big with If

X%, assumes linger increase in results income run net Paul's last but to year's in our XX% almost about and I'm opinion, that and no It's inflation we expect AIR's guidance guidance in and expect. not note may rate up FFO optimistic portfolio than and operating I my faster up rents market FFO. same-store I net only over rents yet future. grow

provide and effectiveness operations Efficiency and in advantage acquisitions. comparative

to other. are continuous committed veteran We and a team to each improvement

work. great the recognitions Award recent. take Our and place in a culture most regular is I pride intentional Workplace National makes Top AIR its to

good to year to I my of last counsel, and and your opportunities their Chairman for look capital. AIR good the Keltner, appreciate stewards engagement this work and exceptional my teammates for thank shareholders. of work Directors to fellow I Board, of I'm grateful the Tom precious hard forward year. be their We

Op. turn I'll call Keith? Kimmel, the AIR to Keith of Head more, no With

Terry. Thanks,

the XXXX peer facts today. highest and multi-family pleased that call, solid in and general; we evidence as growth I group our acquisitions, Edge; have solely which revenue with drives On a the cover: amongst over on second operations, we a four quarter. outlook, AIR's AIR to trajectory positive elevated a past apply today's portfolio months wrapped based which fourth a AIR's is report I'm than and up good will more AIR's had

details. to the Now

blended and First, fourth the was made We core sequential continues last our quarter of in well. rate in from fastest-growing the year growth X.X% do the X.X% business saw history. to Revenue it in growth up with to rates signed XX.X% in January up sequentially. October further improved rate quarter. December. XX.X% from increased during occupancy XX.X% XX.X% month Occupancy the strengthening lease each double-digits, and with of

predictable Second, AIR advantage. unique a Edge is

to it resident While requirements, consistency. customer I consistency multitude AIR is quality. single Edge concept, down is It highest ensuring innovations, a consistency income is of we selection, credit of and have of service. comprised the standards resident of boil It a

relishing a provide Our experience. world-class teams to deliver the day in and out, opportunity day

X.XX delivered fourth the turnover to team, of support. leading us on-site trailing a Our and seasoned over satisfaction It a on process of and innovation and our centralized of residents XX.X%. in surveys bolstered by execution talented by consistency scored only technology, is quarter, month XX platform

year-over-year expenses margin. result, to the were the new XX basis points and We established And high consistency XX points. that basis down controllable a watermark, were AIR's is fourth expenses As quarter. quarter achieving down in operating a key operating it is XX.X%

growth. and superior portfolio, the us what proven outperformance. and higher great and call long-term Third, rents, acquired AIR with submarkets properties, we a higher track positioned of of above-trend in will The his customers which generate higher John Edge work record AIR upside growth has for quality team has

communities grown XX% about AIR the and NOI faster of revenue same-store fourth have XXXX, For Edge Class in our our than both quarter.

the at these of lead communities to AIR in same-store XXX project to is the these the growth The We to and twice Edge points communities grow the pace XXXX both additional AIR Edge same-store contribution revenue at as rate. about continues additional decreases. worth an to expense basis

of our communities. trajectory. are Our stable are portfolio significantly of is These Class acquisition our a than on and XXXX similar underwriting ahead faster grow to expected communities of

XXXX makings year. of another the Fourth, has good

of earned in evidence AIR a three X% direct result growth XXXX. revenue facts activity of in Our X% from is has today. and leasing

contribute X% in 'XX, to growth Our upgrading of X%. lease another will program will and our apartment today homes drive loss X%

rate with Those is of January revenue. strength increase factors, XX.X%, X% ahead and of in February of continued XX% an occupancy is be flat to XXXX. which from XX.X%, on demand, in will three result market which growth, year, last robust AIR's none Occupancy anticipated in rely

Bad debt is expected to improve.

of delays, than time. they to At Residents don't, in to and we are rate pre-COVID on our paying And that of is noise are options delinquent, for XX norms. debt repayments the rent the basis run XXX. increasingly XXXX, and cases points. the the today, down more around returning is residents bad of beginning X,XXX that two Excluding collections had months

directly as The now while I here's in are strengthened a this majority process. is do are rate we collections or have revenue input asking don't thus the growth $XX growth. vast by see we And occupancy market rate to growth 'XX. we what a no total, that have growth. X% ball, and X% year crystal based today, rate have X.X% in market additional 'XX increased far can final residents, Rates flat we In revenue rents on know. projecting those Of

it at to another portfolio our high add growth through earning to the can of most double-digits, growth. that AIR's XXXX is over revenue view revenue is lens. alone allocated in outlook our and South Florida, benefit way. XX% we the is in We markets, where second look growth In teens. market the We Now mid-single-digit in the anticipate allocation,

benefit John's the of refresh of portfolio. had we our Finally,

a at and team thanks a the revenue is Our up a AIR has it, our year. XXXX for residents in XXXX clear attention to same-store revenue fantastic AIR and Their beyond. look population great set Edge My portfolio mid-teens. strong members consistent the XXXX. all the see now success growth In shared in communities to our we for AIR entering expected in us way to path growth to

I'll our over McGrath, now turn call Investment Committee. John the Chairman with that, to of the And

Keith. you, Thank

the allocation. X repositioning our separation for Since in growth, the transactions terms value, on the about focused capital GAV, disciplined turnover of of transformed Aimco, of are portfolio our accretive billion of management $X.X portfolio peers and quality. or has We approximately XX% and from turnover risk AIR times portfolio

reduce point to today. rule measured to Edge increased price the And our expected by rent greater and high-growth GAV X gross our by regulatory market capital the improve markets AIR capital recycled of as improve physical rents, our condition. higher exposure and quality and allocation with of we Continue uncertain from law. risk have materially portfolio including of and average XX% over political and portfolio quality age properties to and to We higher diversification allocation, into markets, an growth,

shown the selling with we by the two-thirds properties, As rents of improving effective older schedules during goal that in markets below furthered release, portfolio portfolio. our were lower-rated average whose regulatory of average average than growing supplemental high of located continuously about had exposure, XXXX, XX was our portfolio slower XX% and our of quality age in earnings which the

to XXXX growth January $XXX capital $XXX of supply. XXXX demand have durable on and also We to million in that factors allocated exhibit constraints and neighborhoods high in another million competitive due

These accretive attractive and unlevered acquisitions of an over were cost earning spread are match funded equity capital. the

Market have uncertainty the Turning changed and to XXXX. calculus. volatility

opportunity. However, therein lies the

boom the over-speculation every During times, corner. recent money cheap from attracted and investments

back in, cautious view elevated An the shallow. became investors As the of make set future. forced sourced, downturn to cost of for pencil, it forced investor and competitors others and harder market to sidelined buyers buyer pools were deals made levered a to sentiment pull capital take

positioned profitable the it a to result, clarity hesitate and presented and days. experience, exciting, times. many growth. tough. But and uncertainty for and peak invest opportunity be or better uncertain makes choose through levels, pricing transaction greater the As of for these wait well are to bid-ask present economic a change widening spreads opportunities on at a a well volumes being off as of our uncertainty To sure, AIR driving downturn albeit is downturns capitalize sellers tremendous pricing

market cash comparative returns secure to sources to of to We safe, and access capital. proceeds ability transactions with as liquidity sheet, non-market use significant tax as after-tax such ample enhanced OP Paul's to advantages is currencies, due non-market units, our greater to have through provide in balance advantage The and generate which flexible, and such all ability advantages

are Edge, AIR of our And hands. acquisitions, Paul repurchase Incidentally, put, shares. XX% of more properties by we AIR Keith's in worth most units importantly, OP neutralizes simply in the which use

Paired errors us past establishing be the capital. spread both we philosophy. on rental rates that a and the availability also calls, improve while our and to continue equity agnostic market and utilizes relatively trades to strategy in and growth stated trade allow cost quality volatility will our execute capital to of portfolio I've allocation As business, paired

of locked Southgate fund outer used we sale to sale November, cost acquisition Consistent with million attractive of the strategy capital our from XX-year-old of in closing Towers in $XXX the six suburbs Boston. apartment Garden were The properties an in of proceeds by the in January.

is away neighborhood Southgate, in got South our Miami rehabbed the a assets blocks Flamingo has located in Beach. of Beach which XXXX, few from

submarket. recycling to a be of cost high-quality portfolio investment which our a performing XXX spread improves are supply-constrained more. expected the capital the in cost of high-growth, basis over of and asset underwriting, capital by ahead quality located or acquisitions, The 'XX accretive well our acquisition points in earnest is and of Like regulatory-friendly the of and into Southgate 'XX

Looking to source our to returns ability continue of and highly by to will be ahead, similar we are capital. the in AIR whose confident our trades Edge execute magnified accretive cost

fixed However, in given XXXX. have market acquisitions goal for no additional uncertainty, we

While advocate. for is of I the Growth sake buying, a cautious rightfully Keith view. is take when optimistic, I more strategy a growth not

and some residents investing look to supply. and neighborhoods continue competitive high-quality will addresses We are to from protection new that in have attractive

disposition, AIR's are cautious expected I economic of in within accretive cost solid over which of the made, irrespective a highly investments, spread be upon the and on bullish the built growth remain to company's our are equity leverage and company's foundation. future an XXXX operational capital attractive they prospects. policies having climate be Despite the

over call Officer. the Paul our Financial Paul? turn Beldin, to I'll that, With Chief

John. you, Thank

and positioned will sheet, on is balance expectations for comment unsettled dividend. of our strong well year sheet period XXXX full results, balance interest today's brief AIR's a XXXX flexible discuss and environment. with I economic Today, our including a rate uncertainty, for AIR conclude

a a target the low. result of to and remains EBITDA timing anticipate $XX X.XX:X, range XXXX, First, of I'll in some will leverage our further as which times unchanged. year-end In discuss but our we target Leverage to the times million moment. is of from repurchases, is of variance range quarter-to-quarter, to X share X levels EBITDA leverage vary

ample, under liquidity now million facility. Second, is our well revolving with over credit available $XXX

limited rates. exposure Third, and floating interest repricing risk we have limited to

rate our we year before borrowings total borrowed reduce floating by end maturity and for to basis, our were credit to and million reduced by debt million increased XXXX facility. million average weighted May on $XXX at years $XXX sold and nine Proceeds a used to our revolving Subsequent rate to maturities refinance of months. X.X%. a X% fixed leverage-neutral $XXX on XX leverage of This debt transaction or

of two flat ratings, the is my from quality BaaX the of credit S&P. rating capital Moody's issuer opinion full have to just our we issued The markets. balance sheet a not supplementing With BBB rating, investment-grade access debt suite

and private bond have the and markets, We debt. the debt access market public property-level bank to non-recourse

the with provided the expected begun lowering rate Aimco $X.XX from note run we the the FFO our to we while prepayment, repaid contribution per per Now the exclusive of $X.XX turning year full year XXXX to engagement Aimco to announced is share. of results. before. note $X.XX and FFO year spring, was a now extend the maturities, prepayment separation on delever Aimco to Last to Full share, decided debt for all guidance allow FFO be that from a note. inclusive When we advance contribution

In our up X.X%. was a up XX.X%, Revenue increased remarkable points. the operating were expectations. and down year XX run operations, expectations, basis that we XX%, our Full NOI XXXX rate XXXX XXX expenses of delivered XX controllable run up same-store same-store only beginning operating year year rate. basis CPI with in results outperformed full ahead expenses points growth bps, of Furthermore, achievement year a when were

did start and of rate of expected a liquidity an a Outside in the X% price take higher fourth shares better, NOI total of XX%. X balance and same-store IRR approximately XX pool. repurchase an We growth million to in strong same-store, at year $XX.XX average sheet our with acquisitions XX% even doldrums the the almost used advantage than quarter stock of of at of market the to our outstanding shares, abundant

the These repurchased in of in neutralize of units the connection XXX,XXX and are inclusive shares January November repurchases to issued acquisition December OP with Southgate.

up will rate XX% look the we million. be As midpoint run FFO XXXX, $X.XX, of at per share we expect forward to $X.XX from XXXX's FFO

this from the benefit a point in a basis higher primarily Southgate result activities net the combination We offset by growth the benefit X.X% the the partially property of repurchases. properties, and higher $X.XX Class approximate to from due expense addition and financing due from earning be to XXX of incremental due from inclusive pool, loss faster-growing from and $X.XX offset share acquisition an of to NOI higher of interest XXXX sales a acquisitions, same-store of interest inclusion outstanding combination $X.XX of to benefits our January NOI of XXXX subtraction partially balances, from contribution growth of rates expect average the a XXXX by

quick tax income share to a comments taxpayer-friendly few with refreshed of AIR's ordinary This continues rates XX% $X.XX our in dividend a and capital dividend. at on Finally, XX% at taxable rates. result In gains dividend. XXXX, basis per

tax-sensitive, For XX% tax AIR than dividend our of we efficient the XXXX, those continue worth the dollar investors anticipate the was to are of average. group. each multi-family who peer most dividend was be the tax more will In peer after

up call your With that, per to the now questions Alexis, we in question. the will Please time queue. the for first I'll turn you two questions. it open limit to for over

Absolutely.

the first from The of St. question comes Haendel line

with Juste Mizuho.

You may proceed.

guys. morning to Good you

on guess, I up here, the rents My is which the rate than are on new lease strong question on much first, holding congratulations your blended quarter. first better side. another peers, So especially

trend provide into expectations And So this next your rates could was of color Thanks. curious blended to you sort the throughout of on blended would I path the if expect early quarter into what you the months year? the the the spring, rate over some hoping if and I'm few follow?

been can the rates you in see that in around been plus at Well, Thanks range. Haendel, for as question. our we've blended they've XX% it's our Keith. looking the walk

coming when type we in And at. is what the forward look January, a that trajectory. essentially, maintaining we're leases into look our signed we looking we're similar Xs, or in see can we As of very forward, are

in January it's and of week days Now just early a course, February. into

front So similar it, an there's still have us. expectation lot to over of days. we continue see next, that But something days you XX in what like is would a the XX or is, call tell I we'll that

part January, that, in important acceleration. saw we the an But is

in and to that starting update. or about how see you another we're We had to But pickup. better seasonally, give XX together rates we'll raised days, so course, $XX And by a X.X%. able we'll get And of out. our a plays we'll be see

appreciate rate what I new Maybe am peers. are the on your Keith. And your some I appreciated. it. on that, rates color missing Got would be lease new stronger lease side, much than that

Look, Of Haendel. three I'd point to different things. course,

team and quality, high with - - focused Our portfolio. with really our on And high incomes, residents, just resident and are our you highly members credit starts resins our start if high-quality scores. with our we

Our average FICO is XXX. score

to These years a increases. the - are up team have and pay different for to managers community eight us. able they're that individuals worked wants average. our service they've customer us be to and stay on managers longer by where And plus sustain who for ability with backed have just members That's

then, to about So are work multiple these really us these stay contributing And doing, missed team work remarks. that longer. his this to in will are prepared my and things But customer when we I individuals have team I work where this. John And think with talked for are members all about who longer, the give of residents course, is the knowing that not together be us satisfaction, exceptional things portfolio.

One, about talk let's Miami.

we be that where in those and that's play. that's of than where we Class is AIR where not bolster. through XXXX And rents we But course, missed a what upside the we coming to more between of of Our South in really over apply Edge helps coming rents, combination high really that's XX% could can the building, take those believe the Florida, And we're getting into position things, I seeing actually can others. when see raise you're numbers.

then, more One some looking I year? guess, maybe pressure beyond level mean, this normal kind expense seeing. the I obviously, that. are of a ahead, helpful. building last for And that's single-digit side, expecting to of if years. on on helpful. just you're you to blocks more, That's hallmark the I appreciate low several just a That's color been could, the return I platform the

more structural levels? Thanks. something from of I'm wondering this to Or lower is an So you just could there's that back anomaly? going if those year perhaps prevent

is Thanks, year you're And for mean the out very appreciate our to Haendel. in are our There two factors increase that and are I for next atypical Paul. abnormal driving the I very our that This point expectations. question. portfolio. guidance expense right growth us, really expense is

an is first taxes. real The estate

tax a our And just you in we growth I so the before has the taxes. expense look have Not estate only on talking years, for in we only real increased XXXX, on X.X%. focus about past at for rate second growth past real to 'XX, compounded three want did but negative if by estate it average

in And catch-up future XXXX markets year appeals don't and XXXX at should occurred in in years, consider of we is an in XXXX. have next seeing trends, large combine a by get if is we we two factors, impact so growth what especially of those of which, guidance moderate XX. estate that that part you expectation two X% valuations you that and roughly a as located our our Prop portfolio our XX% look California when when in the And X% to long-term you in protected range, in many are the real tax of tax in

So equation. is insurance the side the increasing on second factor expenses of in the

with know As companies your and I'm It's the that are is talking hard market and right now you property premiums multi-family sure you've other context, learned very industry just increasing. difficult. through from

sizable a year. that's for line driving expectations business. our in for And what's potential a insurance costs really have that of increase in we think we So this

you Thank Paul. helpful Very guys.

the next your for Capital John Markets. The question. with of Kim BMO question Thank line from comes you

proceed. may You

break you you capital a how was just bit Miami? to had it wanted I are what additive above down revenue that giving that of are driving you. there Thank sector. the growth split growth if your are other because Or markets that an could or X%? And rate? in rates? on also of the much it is high wondering follow-up markets these at enhancements much lease peers how I question to lease outlier Is some growth CapEx,

are turn Hi, when go to board, the see frankly. I'll I'll rates, it, be be highest But with But XXs, to XX Miami in Paul. range. maybe Los the would in places that we it to other mid-XXs. through it lots John, start coming the the of portfolio have would lease and to Angeles that's Xs quite across then lease the we - we I XX think D.C., strong our in also

just So one of and we getting we're places have high new not a rents spot. that leases, those particular variety any

and million enhancements. majority in $XX across address enhancement The about capital to the programs in in that was the spending, John, we XXXX, vast portfolio. K&B capital invested of

we higher expected our rate so on on majority underwrite we a yield an as the the And we in or is XX% an return investment investment underwrite those growth. internal through initial way that manifested of anticipate money revenue of high projects, is the but not of that only

a And so are rates. the - seeing in investment you our of benefit lease that in

Okay.

the better you year. least beginning and asset? is that in you've at of idea Can cap on closed have, of what disclose I you are coming rents rate the guess, the where Now Southgate, in year-end a the

around right is this cap X%. McGrath. John, one at Hi a John looking rate We're year

X%.

just basis you year period? cost is specify can five above a the over Or you of say on XXX capital, what when So that? points that

That's over the IRRs.

over period, accretive capital. spread of of will, on So - over more cost to deals from IRR our basis period have And XXX of beginning, be we expect or a if - that the points XX the trade. our fair will year IRR you

Great. lot And one into you getting final lower question today me about made a points regulatory is or environment. just then for discussions of discussion

to going wondering Sunbelt? regulated to and reducing the some exposure of continue and allocating towards if highly other pursue path that So California markets you was I were more your to

to then jump be Terry would and start maybe in. I'll

course, we political at are capital risk. is, our As of looking on very environments. concentration And part and those and of allocation, of focused areas one concentration regulatory

So risk to also continue both within reduce the growth, we high we on see balance portfolio. our we but portfolio, will can where where

I discussions in add John, even that don't a intervention housing national policies. I to of have note there's lot that. to

a fact expected in excesses of we So at the that. look it's markets, part just business regulatory of in of outcomes today. as at risk look America different and We factor

you. Thank

going And two over questions. sorry, for

Sorry for that.

next line you, of Kim. from Thank Mr. The Joseph the with comes Citi. question Nick

may You proceed.

Thanks. I appreciate the you the acquisitions benefits those the at those XXXX. from to on it kind pre-stabilization? incoming comments any your I just as, putting of Edge the When and the of the Or from two guess, were the deals assets done is of platform? well look you AIR that as same-store on over past outperformance all years,

from greatest advantage they a I product. it onto our the and has Hi Nick, The Keith We that magic what's to this there drop is buy stabilized have as plain on and his the simply John team. McGrath. platform, The AIR Edge platform. as product deal worked. can the is created as the and it guy, We opportunity. I put take

stabilized But you them? acquire all when the acquisitions were

Yes.

is that to add continues. also would that, I what Nick, that

based be event. so will increase stabilized year, a time, over third of some first the of you'll not it's the we to this be rent reversion believe of be selection elevated But trend. investment then XX there second first that so rolls that in have roll, happen first also those in in planning and and value, that as a capital add so likely roll, so in will So we forth, when process the five couple investment much increment a take another the the but are will that and then one-time to its the years takes and the turns is and the asset to rent and then another rate the increment years of customer

Absolutely. Yes.

lot of questions as it's you competitive and lot peers of putting the of trends versus diversion guys focused operations on A have the January acquisition are that really a kind up think results a well. to just in I market. been very good maybe peers - recognize are and the

But that second just to kind the understand difference going allocation of from. So just where question is coming on trying forward. maybe capital

doing appetite the just going trades where You've forward, What consensus NAV? been buybacks. given relative is some stock at the least to

done sold Well, What if appetite paired real zero is, we shares, if your issue question. to we've trades estate - have in we've that's

On the buybacks -

policy we - of or element where rates, higher reinvested XX% so. as look it's over stock growth investment the been the when about see an we we have at opportunity. year trades, that our And And the where a last

buybacks, on yes, not was more the here. on issuing question Sorry, equity

Well, to bought And back the year. those capital that returns that said, our And a last the - more. of buy to as at of if share X% than is We look - continues, continue greater we equal we'll or are buybacks. the pricing this see we real program. balanced estate when I of in part

Thank you.

question the Thank with next of you, Luthra Chandni from comes Goldman The line Sachs. Mr. Joseph.

may You proceed.

guidance that question, But little and market understand you view Thank increase on you that very congratulations then, I back in trend taking market will to growth go I'd that a your it for linger. Terry, trends. assumes a say continue is quarter. of to Look, inflation no my strong bit. to like did

that understand because take that, that there, basically away could of rent obviously is off growth the then fall you've and things all that as is progresses X, started light the we strong in guidance are year generally. or So of not end with a conservative such the market to other that therefore, cliff be we might

growth of not a the why rent view give in market So slides?

be for what forward. trying guidance giving Chairman to team me think it the about happen think future, it's year. when out to specifics a the to a time would give I Chandni, And we're because of as to about Fed the going or what's AIR foolhardy the is at for figure going

So happen there It's we in what what remarks, conservative in way. positive is based we in bias changed if likely it a In change. a negative would happen we a our That's what to today. do. changed talked about on know if And way. what would it

operators. that expert call are economy the far more that group And we than on know this of about apartment are a people macro

they rent if what macro likely to are overlay unworthy under interest my be would to harder rates. choose. opinion the that After be And And inflation so your going see going to the higher also I you it's think control. but get growth, case, that's and outcomes can own higher objectives

rates, an to Paul. exposed we're thanks higher operating on Now interest basis too to not

and to going may up question, But values asset Nick's that net in show back property pricing.

and are factors there's can it all think being dynamic basis in those upside on that moment, think numbers. to - is today in some those we we ahead. very reliable So the could we But say not that the than you probably for year unfold that worse don't rely it a

fair. Absolutely. Sounds

on So some the I'd supply in like Sunbelt my follow-up, touch to of markets. your

you Now lot are chasing least we like obviously, that a a there's in capital all was markets at of lot of that there strong. are was know said, very rates been of lease that still capital, some these Miami

So curious of supply you some where risk as to how in have markets into? recycling the you been capital see

please jump add, have if you Paul. Hi start to Chandni, this and in. anything is Keith, I'll

of in area. our new Your manner predominantly some the markets, in then of been question framed supply D.C. was South risk and in in Florida and a Washington, that has acquisition our

So with to very, the in at those when area competitive in Miami But that total. there's down you and properties, starting Miami drill little very supply in look in proximity Dade of South at lot if properties just aggregate you in areas. there a Beach, supply in our new Florida, close is particular construction particularly look

town, our is City, there Washington, we've don't ancillary about don't we points, stock. our we of the existing to though might see meaningfully we be at effects that XXXX. of submarkets talked high supply locations impact on from many parts past in buildings a Similarly, the price And our concern. broadly, that calls, business so we assets while deliveries expect delivered D.C. that where have Cedar and in our of in as Philadelphia new some to More see percentage continue do a other area have

in and delivered we then being multi-family are on we supply mile XXXX. in Fitzsimons location other actually There's properties very in are properties, a the XX that only see about X,XXX And City only is units area, Denver properties the that advantage campus. within Cedar have in supply properties where of competitive the of area delivered that critical here our the of that new appreciable a our and are being our but

superior. So our when is a location to live, you're far place choosing

you so That's Thank helpful. much. very

Thank SMBC. The with Rich from you, Luthra. line comes Anderson Ms. question the next of

You may proceed.

Thanks. Hello, everybody.

when new number. to comes you this operations similar same-store in multi-family in is but math? So X.X%, terms pack think it a and and I just I the there, to it blended growth substantially your blended impact of to level of said Because for reason? more XXXX acquisitions some January, added the quite additive numbers tend different. REITs quite, this this back go a Or to impactful that the want it renewal And is Is you move said profile, to basis XXX that. points

just you the kind just residents methodology? you if a say explains the difference and have Is you're wondering calculation of there more bit there's anything that's little if best than driving this could - that differentiator a I'm maybe best as saying if in properties? the

numbers When XXXX the blended the Keith. goes rates - the rates. that very came came it impacted as in the by it's we look little, XXXX in, as the that far are or January, frankly, number lease population new as at Rich, or they

and had that who really continue like would thing and with were the position. weren't And be strength we which drove Los stay we was it. they impactful, to saw put D.C. they're Diego places press in San Miami, to While to that we point in one Angeles, residents would rates us in just that frankly, I us out, another are continuing able What

balance earn think the you January's in Class - particular the this will we that year, and X% - pointed of XXXX we will around further the as for it will further Now it course, of results. or as get in XXXX even out, full not but we just into earn year, as be of will

Okay.

XX doing you're outlier much maybe bad color better so your along other is how basis also Can days why is running for some behind Francisco And San you That's you these comment that, in on related give debt at eyes? points. better. The eventually guys Thanks. moving number? a on that

Paul. This Rich, good hear me. is Hi, from to

is to is collections two the from make I On as or debt think and our the is through the we quarter net bad to bad is experience what residents. debt debt we But gross what has bad at seen expense relates difference that our have expense assistance distinction bad question, between a government important what the very debt debt. bad former the And trended the payments looked down.

trended only made XXX debt had are two bad that fourth gross seen bad if bad quarter-by-quarter is what months of to points by these lower related down to year you basis up residents has XXX the about little that quarter, a in in of XXX And have look points bit into basis we fact detail of driven today. And have the the so bps Keith confidence whereas the of X,XXX basis more our down our XXX we the that than that experience debt is in delinquent. from debt And next bad beginning that year, further, in first quarter points XXX roughly then debt, mentioned fourth. our residents of we

of re-lease able in that the most and customers process, relatively those those near to to in optimistic are we'll be we're units eviction paying future. rent And

driving And next is our and expectations so our forward that's going really for year. opportunity what

then And Okay. -

been to our rent. basically Hi bad is conservative, reserved accounting I just quite would Rich, say Paul so, but modest add too has and uncollected we to that

getting guide run an noise happening the of we're XX good standard to is healed the or economy terms ended, bps mentioned, rate the us debt, as have always going normal in a is be bad is of back about on today. the AIR debt. has of metric But Paul and what collections bad collection which reported and And we So lower. restraints focus is to almost to on sort

quick on San any trending? comment And Francisco Okay.

not material San you're really different, of Francisco. if about talking It's to us, particularly city particularly the

you can Francisco? Rich, clarify just your San on question

me. Area, Bay excuse

doing how it's But is been just - are in you it Bay or is the - general

Yes.

leasing Bay So that what some as it we've apartments. to with strengthening seen in demand we've seen Area is comes the

there and - different or is, of might the things back. outgoing so, of that one had what would that is people ground on the And seen remote as XX for months coming work recall, So this been past the we've things. was over folks you go

me are basis and layoffs back people not that these companies. to of saying, home if so occurring reflection And back coming hubs the it's some of clear that's to are of I tech a that the essentially, want get these to

previously Bay occupancy we in XX being is high the example. our XXs, The the as point you struggled give Area had would in at I is and an

seeing shift a are we there. So that's

most Now The and fully of one recovered. the was slowest rents impacted. haven't the Bay Area

the And we're to the Bay work so we be Area good there's more done, feeling is still where about but start as year.

results Congrats. guys. Good Okay.

Thank you.

Green the Anderson. line John you, Mr. question with Thank The from Street. Pawlowski next comes of

proceed. may You

would the can much just sense lease CapEx, rates more a and have for me Thanks months reported? lease XX% lower without roughly changes. question time. Please revenue in give Paul, you one us on changes bear with how been new new the versus

we're revenue enhancing, contribution on the of enhancing to is little CapEx, a to and a dive talk get about when question because that all a reducing. expense have back that's you not revenue-enhancing because it's from misnomer, that to going John, also into it's we bit but revenue

And is number and there a mix want don't of so the my there, that off issue isn't top a to I head give you precise.

on So us you follow-up let with that.

obviously, Okay. market. portfolio? compares ratios current in total to level rent-to-income up give us how a just Can market the the the problem. has of massively portfolio, your Keith, in your Then sense just that a for quick and No Miami portfolio, few rents the Miami assets you composition changed questions. are

the quite to see So is renting actually well, fingertips here. is, I running so the actually different if a I've at me detail right It's reason similar. been in which ratio And let have here. right at don't my We've - we Miami, Homes me the giving city. have just got - that that who's XX% city from rent-to-income requirement because Matt is

substantially being to the incomes month, So it. or standard high and a type, the enough we is are very a $X,XXX the of grow regardless having of rents high do whether we to into a month have cover what product $X,XXX

So it's Miami. about XX% in

in D.C. Metro? Okay. can more little going Last in the provide decline D.C. color in a Washington, trends Keith, terms about X% revenues The one me. for demand sequential in on you of what's

Sure.

there and third some in happened the AR we had quarter really, between quarter, transition we So the accounting the what was fourth had of two. transitions that some that

really look our of matter we a So strongest is D.C. our it was on is And points happening of months. one as markets, forward, and broader strong. be XX% two really, it's of DC between one those occupied. that at The would that it

So those two really noise between some just it's months.

overall number, you shape. great look total the it's in at If

Okay. Understood. Thanks.

John. Thanks,

Pawlowski. are no registered. Mr. currently Thank questions [Operator Instructions] you, further There

- assumed offices. forward you to to But interest I or Colorado, just AIR. you we And upon be our if us. team. we have for in want Please conference is any look welcome thank in management for very being much. together. you're The us their everyone to questions, season We wait thank visit questions if to While call of the any in you

time. at remarks. the additional additional no this now any management possible line are There I the will questions to back for team turn

you. Thank

conference participation. Thank earnings for your Communities fourth full you the Absolutely. year quarter call. AIR and That concludes XXXX

your now disconnect may You lines.