Apartment Income REIT Corp - Ordinary Shares (AIRC) 3 Nov 232023 Q3 Earnings call transcript

Welcome, and thank you for attending today's AIR Communities Third Quarter 2023 Earnings Conference Call. My name is John, and I 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.

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

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

Investment are measures will the are defined Officer; website. Paul CFO. discuss CEO; from management part come also These non-GAAP earnings will members as We during AIR's our comparable supplemental our in are and published of Kimmel, remarks prepared full Other session release question-and-answer Considine, available is and and financial to follow will Property be Keith measures our us such most also that Chief remarks. the of all Operations; reconciled the today Prepared on the of present FFO. of Beldin, Terry our President Josh certain GAAP information Minix,

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

and with my Lisa, quarter AIR business this third everyone I a to interest in you, Thank AIR. call for had good. is and X solid on observations. start your thanks

Keith first team The matter. and continued operations talented his to outperform.

matters. national for neighborhoods. apartment market there's composition a local supply, no is submarkets tremendous At and level, portfolio a national new renters, Second, there amount of but competitive markets, only

years. and price typical a review been markets And range by regular shows several of to the diversified is property-by-property our past over we supply AIR points. as look new XXXX, that's

recurring profitable made In and flow. XX-year Trades and rate upgraded successful created our the rate the in third rates interest opportunities disrupted has the in AIR growth Third, property expected The Paired increased portfolio cash that quarter, increase pricing acquisitions. for matter.

growth, more lease quarter, the cash the around team stable income financially stay growth, third our deep growth emphasis and customer AIR acquisitions. retention, and operating same-store advantage accretive free residents, more AIR's decision Keith AIR with possible margins. with and enjoyed AIR quarter, communities and again selection flow highest results make us In operations comparative organize the longer. operations. net pockets of his rate who in operating partners venture our to confirmed in are the on In customer capable

Over more $X financial the of whose at Capital properties, results rates X past well are years, improving we've peer-leading AIR's than invested billion above portfolio. in same-store AIR

to at of joint who call. decades. to you sale, AFFO dear introduce pursuits. Investment the Speaking rate many his as will AIR want Seamless. my Through our and accretive well wish entrepreneurial AIR and Joshua I co-CIO friend the also portfolio. AIR to to of John McGrath, of and to of him CIO Officer more report, have in more Many been than and proceeds for want quality growth contributions And Josh, and to the was property than property hat reduction, both buybacks his for to the raised met debt purchases, capital $XXX tip Josh and reinvested share have and million transactions, I FFO transition improving a X Chief Minix, a and ventures will His new

by price end kept our we for to exposure the EBITDA, Patti leverage foundation interest the all last limited AIR month the sheet posted is our and AIR higher and in described corporate well responsibility bulletproof. balance will the report abundant Xx and website. colleague Shwayder, do Paul We liquidity on year below published culture, the with rates.

Keith? to of Now Kimmel, I'll turn the President call Operations. Keith Property

Terry. Thanks,

was quarter good. third The

growth growth frictional XXXX, leasing acquisitions, gains portfolio outpaces accelerating only season ebbs, AIR's past whose Slower vacancy occupancy the as impactful put XX% significant by ahead year, muted in and overall As diversified rent high from expected, we with pockets of with rate peak supply inflation in same-store retention XX% and our as behind pace demand us. strong turnover communities.

new XX% quarter up Revenue to with less on rates Expenses up rates and XX.X% increased renewals lease-to-lease X% The year, was X.X% largely X%, third July blended year-over-year. results. than X.X%, in expenses due translated solid full Occupancy expenses And for are good up quarter leasing were up to financial from X.X%. up timing. AIR X%. throughout September. lease into plan transacted the in up the controllable

increased even in operating AIR's margin X.X% portfolio. Growth XX.X%. our and stronger was income operating was Net acquisition

Now XX% of our business, Josh and team. his thanks to

years up included XX.X% now owned and net operating approximately and net XX XX same-store to same-store and growth revenue portfolio same-store growth. revenue XXXX our for up income to and XX.X%, basis basis added from acquisitions in X income points X Our operating points

same-store XXXX XX.X%. had X% than class of rate yet included acquisitions down net in income up Their up revenue result. Our increase operating our expenses not same-store and in profitability more X.X%, triple is of

the this a revenue quarter that to same-store XXXX. in to communities. steady Southgate start see setting and solid sequential our up third had us outpaced bought for year growth year We close earlier a also the

October X.X% October average These rates up quarter. hold lease X.X%. seasonally up the XX% the the of expect in was with mid- lease are and we third range rest our today, up rates transacted occupancy occupancy renewals daily rates throughout blended is due the year. to from XX.X%, Physical which X.X%, up X.X% easing

in FICO by talk occupancy We continues debt to a bad a approach The AIR consistent with that residents results. portfolio are the delivers further earn-in in pressured position, Edge, improvement the XXX to We rent-to-income distinct start and quality positioned Edge expected well show begins year for with an which that low diversified score with in AIR XX%. average supply. will that strong new strong are range, regularly in the markets X% revenue those below about offset a XXXX in growth

to improves add AIR productivity relationships, or a world-class and These factors business Our resident the controllable stable experience. to to results in approach who thanks by combined We members value. to our expenses fundamentally customer turnover, the use bad resident operating marketplace. service AIR delivering it experienced differentiating stay nearly analytics XX years. provide to in We communities occupancy, and debt, longer, for to thanks build differently. My delivered ongoing your margin. world-class where customer operations, We passion all reduce AIR's selectively, teams, for on-site residents flat and our team lease-to-lease metrics, and commoditized communities team rethink growth income past service our create technology

You the are foundation of AIR edge. the

turn now the Investment Officer. Minix, our Josh call to Josh? I'll Chief over

Thank you, Keith.

our Maryland. of The fund and provided portfolio. acquisition The Raleigh. announced These call, on Old further used We've Elm the City. North transactions capital where million our We Triangle grew and million, with provided Elm are $XXX was business to The the Tempo buy core in quarter. Carolina sale stock. this finishing increased million The acquisition by of balance improve and to to Research planned allocation Bethesda, The AIR $XX share open JV Brizo in we QX with the and of market, X Town faster-growing in closed York our the $XXX properties the for New our from of entry and over back and exit bought delever

expected and flow free are trades accretive to per share. cash $X.XX XX by be to parent these together, neutral Taken to NOI

XX% compared properties quality. to philosophy cost our half. years positive the cash Edge stabilized $X The on less replacement spending a XXX investment points per We focus XX over of of this replacement growth of free the portfolio better average quarter higher, resulting expected capital after acquired ages the basis flow Expected Air of higher, and years, Our by versus million markets. higher on reduction rents, improving XX-year capital properties flow higher XX% to ages year. same. than remains the effective generating and driven locations of is spread cash X capital sold and that in combination IRRs a of is

$XX retained and cash flow in QX upgrades fund yields double-digit property used We to of with year-to-date million on IRRs. $XX also million

result, XX% XXX AUM around to rates billion. of basis recurring driving implementation total a generated is from the NOI flow by with scale Higher Edge points over of the portfolio $X.X the New our NOI X.X%. acquisitions, and portfolio a where AIR allocation economies of by growth growth these to lifting XX%, of JVs cash with

growth property NOI customers across resilient and B supply West equal from XX%. has micro apartments urban proven in properties categories: quality ranged suburban even high point elevated of East the portfolio new upgrades, of supply. track from The and impact during broad national credit periods weighting following and to diversification exceptional and price with This roughly supply X facing of historically percent Organic location. locations. XX% the Coast, Class from Class has which pressure, We upon depends and A

At the limited with equity supply down the XX% the 'XX. found is for XX% due in appendix be market the cost to reported available release. details estimated national We can our debt, concerns. of at high filled transactions volume to to and More moment,

However, benefits global access Edge AIR from the the with well to to most and our financial and count talented and acquisitions an on to investor capital improve partnerships we a sophisticated some from investors the source via it results and portfolio Keith that quality. Superior of funds. and team accretive largest returns. operations AIR both note is sovereign great his to as I our advantage ability

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

highlight results will our I expectations report and you, quarter sheet the a for earnings on discuss and to positioned. well year Today, dividend. balance sheet, enhancements X supplement made Josh. Their concluded Thank balance comment brief AIR's with is our full our third

weighted but points of AIR in our XXXX X.X with and points of above basis property below debt million During refinanced and of term new costs today. quarter, XXXX short-term credit a life the a weighted XX debt on a borrowings the by borrowing rate with million average average repaid, rate facility fixed X.X%, the interest basis and $XXX happily $XXX revolving loans XXX years

joint to As exposure share that a interest $XX our venture is result, on our facility. million AIR credit of to million rates Virginia in plus limited revolving has the $XX rising debt near-term

all XXXX with debt cash XXXX. is free anticipated It million NOI to accretive Leveraged be maturities until acquisitions temporarily X.XX:X share abundant is quarter We and repurchases. billion EBITDA second debt and flow to below elevated at timing of have through the today $X.X no to $XXX sufficient available, year-end. the liquidity of due and refinance maturing

midpoint the was above FFO of of Turning to guidance. quarter third share per $X.XX $X.XX results.

income quarter periods. income X.X% as As and include per nonrecurring Run the year-over-year third previously X.X% rate XXXX third future compared share $X.XX year-to-date. FFO had this up we discussed, In and not which income up recur in to quarter, quarter, excludes expected XXXX. the was $X.XX the to nonrecurring third in of XXXX such $X.XX in FFO,

which of visibility Run rate AFFO We required about been call we greater year-to-date. publish property our fund to AIR to AFFO our about replacements. for call $XX the $XX and X% year-over-year a upgrades, now is investment year for to capital spending X.X% of enhancements. full dividends million be AFFO proxy was up million retained in and capital capital disclosures. and up we properties, maintain from $X.XX growth, per to it the has share, as such depreciation, which organic expected calculable year-to-date provide excess

Looking $X.XX guidance between be forward per year for narrowed to to full our have pro the quarter, share. fourth and we $X.XX forma FFO

the FFO share, of AIR's and income. pro leasing sequential property seasonally profitable peak is nonrecurring the to doing quarter per For we season expenses. higher quarter, $X.XX the rents lower anticipate usually with forma and The earn-in decline fourth NOI, due most in $X.XX offsetting $X.XX

share. effective our we to X. enhanced derived transaction allow to earnings FFO of percentage like to of and Schedule separately The a discuss subject of from long-term the made AIR's from third contract support added our our AFFO proportionate core those to activities. We've I'd and parties properties To additionally, the and the increased statement this modeling, in consolidated FFO glossary to to services third-party Supplemental unconsolidated more to of walk X disclosed of for walk provided to Next, the services release. schedule. generally drivers venture enhancements and we income GAAP joint And efficient close

share AIR cash with $X.XX out any quarterly the dividend changes a Board We Last, in dividend a you queue. beneficial, to reflects an for annualized to current will we the over the open turn for time questions I'll on that, declared basis, of the approximately share. will trust questions. questions. first On question. be Please the your based now reach of these With per call limit the yield Directors for please X of X.X% John, price.

[Operator from line from Instructions] of Wolfe Eric Your Group. the Citi first question comes

them. On on gave Page Joshua, X your acquired think, a by of of NOI I breakdown you properties when growth based

will GAV XXXX XX%, I XX% for of disclosure remaining the can from curious, take excluding that A the in real properties? the sense paid basically in for next any your Class other and so be early pool estate So Just year? potential that that same-store those growth just

you the question, Thank Thank the store, additional be next we Paul. is the your particular I be question. provided what's this for are from will properties But that Aimco, disclosure those in supplement. pointing our for well. the then included less adding our Eric, in we'll as pool of year answer class we well. XXXX hope out ago same in in a you're And adding year XXXX we real X of And you same-store. estate, reacquired properties also same-store a to part so that little than now. will be other to

in made the that will And outside only acquisitions our same-store items be will so of XXXX. be

to down revenue residential substantially. of quarters, the receive of Can see headwind you growth more bit this then that your presumably you that come fees. next late contribution been your as And be which couple it. income, debt saw growing has same-store bad year, given bps over a other a XXX little just from a has last Got we quarter, to

think you'd see offset to Or initiatives fees? other are there I would that? late of sort So less

Eric, initiatives There's it's to some Keith. other that. offset

focus of on have particular amenity opportunities. We other lots type resident very and and parking storage of

start about a into year, have come that working fees or other delinquencies, things next are play we'll earning the So point and we've that that in and year. we while things acknowledge could actually, late of whether with ideas on I been lot your other previous

next Your Anderson the comes from line question Rich of Wedbush. from

sold joint sort structures, concerns thing of in partners understand What more of of venture I on and very strategy sort return of that so deployment complicated and me stuff. all the simplified is of a line funds you of on So behind the sort bringing sort on, to that the it. is and AIR thinking

formation you few years? So do you new to what needs of Or is venture got joint to ones? expect expand coming do from like enough activities growth your the you've here, feed feel for

element Rich, much transparent. want the by our that And the the proportionate would time think, so absolutely team adds capital voice, much afternoon, hear facts a your markets. walk then that note for in it's it's of not able to provide change, by to correct need where ventures that the and the an that AIR in change single would there's increased dramatic included Terry. undone facts, was of And change At his I we joint be to Paul in may plan. good analysts AIR I track same-store You're too good complexity Schedule it when addition that a market the to incorporate in joint be, that's why a on thinking. the be we very so be point, since the to had separation. and and a and you venture. But complexity. been II to contribution And AIR And spent we

lie of debt yourself see we mostly all or that pair you a and your situations. some opportunity sort up you grow entity as and pipeline it Like it of of you Great. these as go? now how could that. how set be some out scenario. have trade for and that And even Could number type of doing today? idea the mind deals Okay. a in portfolio-wise larger you yourself might sort ahead, see kind maturities what's one-off a in as there are would level this something an may sort your And have of look? peers you Do Do related dislocation teeing to you far

AIR industry long the [ and a Rich, you followed ] time. for both

will that doing and so know you be entity acquisitions. And comfortable acquisitions one-off we

on I think it depends the really what opportunities market brings.

still by I market. don't back down where was. interest it's bit, a it don't delighted impact rates or is clearing back to But fully and market's think of for think that little the the higher I XX-year And I found and going think long understood reflected not that's see to yet I a the how but think reverberating the place. I'm

comes line John question next Markets. BMO the Your Kim Capital from from of

X% would midpoint you second the the I the at guidance, your get mentioned to the of assumptions But which to October. on in that it be mid-Xs an which year, the in in then, achieved has had answer guys in to same-store in blended last decelerated rent have question, half question on quarter, third quarter. maintained to reach you a your the The since revenue you midpoint.

guidance at So goal midpoint can stretch we point? that a take the this your of from is

with disagree articulation. I John, that

with guidance midpoint is land. line we where the think of to in right I expect

when quarter lease And we the our year, blended we blended for growth expectations in our the growth of so deck July. put a end be for about same expectations our out And rate today rate they X.X% X%. as the talked between were and to we about September, full last for that lease are at expectations year in talked

think we're I up think September, year-to-date that I X.X% in through ballpark.

the regard. in many you So fourth don't think doing quarter to just have we're because that that well have about we of then that business, not impactful impact it's during the when quarter. remember transactions leasing, for And you our

Another implied you the didn't I would it's ask, but an acceleration to interest area to guidance of I to for speak point just quarter third on the explicitly fourth think revenue that that quarter. relates relative

basis we the points that, basis Occupancy But of ago points in XX a in was our already affected can year quarter in quarter, where October, XX conversely, at form is growing. occupancy. look was than third the ahead that lower growth were ago. revenue you see a by if And lower ADO and year headwind you a our of the during

months but to about feel and a hit X So we still likely view it outcome. we to comfortable go guidance it, very as have our we

Okay. color. That's great

Your Aimco. it to earnings year. in and It earnings foresee that on separation year, headwind from translated items revenue next But you leasing growth will your you're $X.XX FFO. that to you leading. internal next track Do ability on nonrecurring headwinds have hasn't same-store FFO repeat year, have including with NOI? been any other feet match like for impact do metrics sector the to reasons, looks This that various

for income and of might But jump to want right John, have that year. I'll our anybody current in to expectations you're else. if do nonrecurring start in call out Terry we or $X.XX the

do why run which is to you job the pointed a own of at should but importantly, going during growth, better now. And a year, up our script, that to about bailing my rate NOI so for up we of continued But we're remembering have and that's a X%. FFO quarter, others benefit it's I have growth. same-store rate next strong is X%, more me

supplement We average quicker. be composition is our remarks of from have growth benefit look the apparent, changing headwind, and growing changes. the at our our earnings next One which sheet edge and AIR a the balance prepared in portfolio rate properties of if you year is evolving that other restructuring will spoke because year that just weighted than my in about higher interest I this cost higher

to for cap X.X%. Virginia million pretty That with joint expires and of you year if as so average that's out, expect associated capped interest that at venture one next you that's give as call to what a currently that's debt $XX of January. quarter, weighted the I'd at our in good third the should that with look caveat our proxy And rate

$XX we'll on debt. subject So that of higher rates next be to year million

just we it do FFO? thinking should run one this? earn-in follow-up. items? is less How How an we that read Or quick rate be like FFO Just Is onetime about concept?

items volatility the think relatively rate it consistent John, be be There's would some evolves. changes because we year run recurring and would normalized in business a always the of that year-over-year. FFO,

We And to items. so some attention volatility recurring there's enduring. in just and to draw nonrecurring type wanted what's

and want the focus to team underline Paul here of The and flow whole AIR cash And I John, business value. the worth having. income, cash of we nonrecurring even That recurring the if Terry. just I said, want income what is free gives think important rise -- what just to and nonrecurring all it's is cash that's free on is said. flow. most driver

cash but going the you and we're so to getting to flow, the it think going also is keep more it, keep towards free recurring reporting we're directing which fundamental. to And we

of Your St. Haendel next question comes from the line

Mizuho. Juste from

So I my touched the to you John. and question the acceleration guys -- your in XQ response guess on

of So offering Keith, the today? you you your contestants here? maybe, next your can some in where pricing some Fran. of versus weaker and portfolio power expectations markets and Chile And performing into the markets, Boston San [indiscernible] are talk about year better for

I the Haendel, missed last part.

said What question? offering? You where my the last was

in contestants the offering you portfolio today? Are

Okay. Yes.

in that returning first the point Haendel, seasonal pre-COVID. saw And they at want look to what points about is we're rates. and XXXX we're we what in thing seasonal XXX deceleration pattern. and you to when the a XXXX, the quarter was quarter think that to emphasize And those talk of we let periods, -- I which And third I the lease fourth normal So seeing somewhere back really the deceleration. between me fourth to -- new is basis XXX

window seen so we we're at would at a where deceleration we're look that inside Pre-COVID. that we of And similar have very when today,

third is quarter typical. different had this what much had, is period lot time, from to fourth more what going where a seeing we're quarter the of this So of akin the we've factors. to had But for acceleration

the point that's to. first thing So I'd

in the The quarter, we fourth second pointed thing out, I'd say Paul is, this less do business our which is model. that lot in a is,

our the The September, leasing business really of which majority we activity earning majority from and best happens where that that. get May is and of the That's happens season. our peak between

that exercise next into really then something year. peak and season because to I it's making not have the a about want around of lot so And deceleration is building

California back. has to I been year, Listen, of myself to Northern tough what. who's the has Northern one bone But is of I want out that on the get to going next do come one into look a California. think about, most ahead we the pointed markets As you

that's Peninsula is back, at I'd what us, tells County. today occupied Northern XX.X% that that going earn demand to and the Marin pricing it point, some in. San particular, for Jose And you is going California we're me exists. to We're be get point we're to and in to What power back at And today.

it thought year. that So could the it Diego be to beginning could and I at for out this us. to was else, of the in be called be continues we'll great San one a see. winner true turn market I but back. be

continues be skies market, Of balance a will to in be be blue supply of we're behind first course, tough Miami that to that and great work market get will us. then once through half for us. clear call year a past sailing because but we of would the the as going Philadelphia be the we I supply,

that's get more January, when we you get about into have the the way think we'll but So particulars, I'd to it.

buying shares, acquisitions I Great. quarter kind assume you than guess there? led curious then And more what entered fund. be you Raleigh you Appreciate will your you're of build guys JV. saw as deploy of maybe that there? that other cost that the to color. some maybe like capital isn't much it's of the dispositions a market, capital I you what where clearly, use then to looking on first this has exposure JVs. potential match But I And think How on question there, back source as

to then Josh joint for going on and O'Grady, person I'm who's our on But I'll call Terry. Matt Raleigh. ventures, it's the for Handel, say, call primary would responsible I

So Matt?

our to amounts joint Haendel, venture on partners just have -- committed each us. invest alongside the follow-on

continue I doing I the by continue we're our are so $XXX is in -- meaning think don't we do future. pockets, $XXX that about be partnered with say aggregate able And deep to we those. to And million. amounts should -- on draw folks those right the would million, that so We'll objective partners. in a but with And there's to

Josh?

to the us will Raleigh Thank multiple labor been target universities force the of this and on deals We give factors in long-term market. for generate we're favorable technology durable the be population you, execute there research market of immediate and able scale outlook proximity Terry. quarter the in excited growth these we believe by air, companies Raleigh to on to skilled in based has environment, a science long-term market. business and to think growth driven job the

And feature he overlook hate team. what now, but Josh various said, there, I college at amend basketball to in to the have attractive

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assume you Carolina? North mean I

worked of assume the will the I that get course over out season.

Your comes from of Green next question line ] Lu the Robin [ Street. from

point? Jose. demand next broader new you price are track are tougher that signing, tenants to Or you do sluggish you just on the to expect I be you XXXX to the actually in did prior stop that go new area? in want your it the Are I you I Bay and guess, table, mention noticed on around Area. back in expecting demand softening year the in question that expect leasing peninsula San

just been tough X there. I it's Keith. that, would it's years say a Robin, look,

to navigating Mostly, for what the be technology to there. is But with March to had referred been of back about, table me year, really happen have our the it's want confidence environment things and remote sort believe. we the we're some when that occupancy will period types say about in all of to that of I But that exist So in the of the to, X being recapture hard just continues rates portfolio portfolio It time. Area on there. of in that demand the the be the point really be cautious can XX.X% this years and will coming that of our to a pointing that we rises I work it. different at Bay gives

just touching for just Josh. then And That's acquisition. one And helpful. then the on Maryland

underwriting and you [ usual top rents are the to the to higher than And growth price ] are push of market. your XXX,XXX ability that term. a How for the what over affordability? little bit guess, thereabouts rent the I Given is is near-to-medium

building Yes. is we there. renter less That of that property. attracts will be particular -- excellent rate top in market-leading That you're XX%, and ratios income with and absolutely right. has to the quality durable one than of base the Affordability demand. It finishes is think end a in the higher-end

from Your the comes next question Goldsmith from Michael UBS. line of

revenue helpful. the like It are of The seems XXXX others. same-store for some probably is buildup components certain really than more

can and bit and your the average in the So little increase debt a detail improving into bad more you provide occupancy next year? daily visibility

You This question. Paul. the bet, is Mike. Thanks for

higher On that in in a expect Los the average range, had the to point residents paying than that around provided do XXXX. maybe the versus that those Angeles rent. XXXX. as but to XX We the XXXX our where in communities, due around bps been eviction quarter to A occupancy second had on first noise during XX process our not better evicted optimism we of we living just portion really is we daily in

And -- elimination gives range reoccurring then on XX so this points. on us we year that's driven next the versus by of that And on basis operate points, the being basis how just operated XXXX. XX that the the really at year have

see we part year. our we're the changes occupancy we're upside due So but XXXX far end it markets. of doing plan, budgets the part to is just we L.A., trailing due in and do did of as this better than that is year-to-date, our to to And

gets us that so the end the range. of high to And

this On year bad debt. we done well have bad debt, in

year-to-date is bad basis revenue. net a Our debt points of basis on XX

eviction-related and debt XX fees. our of on third and points basis above where pre-COVID is exclude getting points XXX just move-out that's you a we're on periods, with of But gross the due still that basis. basis bps basis, in been from those we've collections a elevated gross of basis although on our bad is a prior closer quarter, revenue bad to costs If debt XX

if XX again, that a our you about is So debt bad on bps. gross pull expense out, basis,

better in And you improvement what than know so, that do third the for 'XX. would we if in we quarter, outlining outlook did we get the are that

are quarter to understand like then getting that question again this built long more investments and Got given controlled you and is for term? year, how of kind of controlled ability the And continued the ability I'm I my moderate keep just control cost guess trying you're next expectations second some drive is much it like into or your over it. to third end savings keep of sustain in to the the can we there Or of component? kind is that's expenses just well expenses making, here. on to the

bunch of a to long up do room. will Terry. There have see continuing The it but question. people has don't eager been opportunities we to is, answer better. And hands we how we're long years XX it's time, the know are we in go a Michael, that continue. answer short

And pause. calling so not we're

see thereafter. what of We expect year, discipline that to have next happens we'll and kind

the in luck quarter. fourth Good

John, questions? do additional we have any

Next question Wedbush. from at Rich Anderson is

any guys. follow-up additive much The those And But Tijuana. after of as you the say, about anticipation was work have expectation of Quick pandemic it wondering your to mustache is for on get have that -- too through walking growing $XXX topic hands is no just if debt going up curious million residents moving I'm Essex they the are a me. an do, not does to and outlier there yours? and received sources. XXXX the there longer component the from in night, and changing it's just those not an dark that we're you hair that delinquencies to it rent What put color stand out if subsequent people of people their to go because and perhaps say if of just something back? killing of bad because is I'm like to said

question. the for Thanks Keith. it's Rich,

want why our their just MICO and up is obligations, through a look the result them. people on we resident's means I is What when I fulfill time think at we And of spend live they start, which different, scores XXX. at quality. First, lot that to is

you And at haven't a they What of else. the back have just to experience may so that point, found residence, referred had had majority while we a some found with somebody to is that have the have we way track. get on disruption we

that of you to, them in small involved the related done maximum amount it tell for it the that's somebody actually to personally of you had claims was rent. that if court. the is could they And that small lifted actual California, seeking sue I actually out have wrong. in As COVID one am the things claims will to And after this I who with going extent those it is relates worth time interesting

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