Equity Residential (EQR) 2 Feb 222021 Q4 Earnings call transcript

Good day, and welcome to the Equity Residential Four Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Marty McKenna. Please go ahead.

Good morning, and thanks for joining us to discuss Equity Residential's full year 2021 results and outlook for 2022.

our are Chief our Garechana, well Operating Financial Alec today Michael and our for speakers is Officer; our Officer Manelis, Officer; Brackenridge, the featured Q&A. Mark us President Parrell, CEO; Chief here Our with Investment as Chief and Bob

to forward-looking or Our is the that subject securities may call events. constitute the to because statements within posted The Investors the risks Please federal of company assumes equityapartments.com. statements uncertainties. conference earnings advised during that These this are Parrell. of turn release subsequent certain and supplement call economic no of meaning laws. Mark over I the now be obligation become update will certain in statements to section matters discussed these forward-looking untrue

and about will that, prospects our to going And a Thanks then will Michael operating like what remarks Garechana some our of and and and cash when this few Marty. I'll the business for ahead allocation will capital and joining our flow our results beyond. it's what go you comment about morning, This XXXX program After the we'll us We're XXXX their look Bob excited operating revenue. forward. thanks company for growth moments all I and And questions. review outlook discussing impact will and today. very innovation same-store And on make activities performance on Manelis our spend we business. in your take complete. driving see for year our

in us for and high history. locations Living and The healthy demand in both they turnover the well driving our is base at Our Apartment affluent resident receiving and is and resident robust raises are levels. with lowest record occupancy urban suburban renewing employed

balance should our performance to revenue would to funds good X% XX this from of our strongly. as continue poised what on attract XX%. and manage the of which performance the millennials, general best be history. product concerns said, and offerings single-family rates housing a a relative We the in and Z COVID include its beginning operations flexible well business in of surging unfortunately, midpoint, is as guidance strong the normalized continuing retain which world, rentership Both chain likewise point the the see and increasingly we calls how supply short-term to inflation run growth be at as Generation the from welcome is our grow sheet related same-store million grow Cash that for we variant. in flow member our with at horizon Reserve the latest the while of at storm are to we about should about Our Federal clouds high and That recent as will costs. economy, aware the price affordable disruptions

hedge rental rates lease reset a ability levels annually to resetting in revenue create do significant rates market leases should In an our expectation are leases not immune the if our as at well a expected that recently revenue considerable we in even is signed higher to and not inflationary XXXX, a current amount as rise While beyond, a XXXX growth will baked form results boost. pressures, already XXXX into our of natural to rates more these world. of provide in

the technology on in to the active many enhance economy. our management our up development X% a progress comment with a costs investments. also expenses, moment. and business, in side to to of activities. in run and an inflation had in the control XXXX execute Switching billion over XXXX a with ramping X% expectation of all operating successfully expense grow very of $X.X incredibly Bob in We as the on our We well acquisitions customer and as to despite impact dispositions on this will control experience in growth continue continue and We on margin. of each efficient that year midpoint growth platform harness

to out of newer capital our suburbs portfolio recycling older the our markets of established into by continue assets We successfully deploying our optimize markets. and expansion in and assets

earnings. Our recycling XX disposition an and compared years average all have not acquired our an this years, two age properties age capital XX XX we're to average with as of while of assets diluting

billion transaction XXXX $X X.X%. and of was rate at and approximately sell-side assets. both buy activity average Our sell buy cap done expect XXXX, to an the on in In approximately both we

focused Denver of Worth, assets suburbs our in Our our on is acquisition markets. out portfolios and well Austin as as in the existing Fort building activity select Atlanta, Dallas, adding

to our $X and opportunities continue deploy markets XXXX. see great expect We them into in in billion to

Washington, On D.C. front, and XXXX in to in during the years. on $XXX in construction approximately Central and expect several Denver, development York high-quality we million projects development suburban New commenced deliver properties

$XXX construction Tower million during the report Central pleased and is our lease-up completed very also of Alcott going We the well. the quarter, in to we're Boston that

pipeline. ventures, development do in in XXXX. we Brothers. our the These with Colorado Colorado other development in Texas Toll separate are entered joint venture with in of XXXX three and parcels so the the In three the first expected four the quarter construction the and of quarter, terms fourth beginning into In program to development in joint

of have reflect in like the Atlanta, congregating we Denver. renters spreading you we demand from and Dallas, reshaping see we are out Austin, the to portfolio Fort and with markets coast discussed some As trend affluent Worth before, our

coastal move dispersion the markets like We our trend established of Burlington, Massachusetts group our near also suburbs to as Seattle; Bellevue, higher and Washington, near of markets Boston. another renters income see but a similar local more in

presence the a in submarkets of had always we've markets. established Now our suburban

urban just talking I'm and what creating more between a suburban So about markets. balance here is little

the business, Driven our analytical long seeking amenities in and a also will in and our high-quality from being substantial many enjoy demand renting to informed where and to higher the urban newer housing in have build urban and single-family in as likely apartment is seek think, we centers locations these urban expensive our supply by where to and to we markets, continue living. experience grow is manageable. We to those the investment relative research renters we of to suburban continue see assets of will attract, buying and renters where by markets high

exposure a there Dallas, more and more regulatory expect assets. and returns. third of with of have in think in over for occurring the We XX-or-so We We from the the reduction of of from metros about in assets Atlanta, Boston, distinct with stable to the Georgia. concentrated Northeastern provide older a portfolio Washington, maybe to of one-third dispositions. challenging York portfolio being New locations or high of to Texas a see and refined in our and markets bit The its assets desirable diagonal Denver, remaining Washington, to in one-third portfolio divestments D.C. newer, New or capital-intensive York California three most will so live coming be D.C., company affluent through in this Austin and less long-term renters Seattle will approximately and

to colleagues reduced want offices country. thank my benefits turn the Michael, shift. and see I finally, to regulatory over I resiliency portfolio in you also call properties to our and all from before this a across We risk give And big the

XXXX, and during for ahead, all investors very forward to I great customers unusual Go our grateful. We're and our you. we're exceptional times, an job You very with position in a are proud look and delighting doing Michael. and

revenue on and Thanks, XXXX the you finish Mark. morning, I year on provide give some highlights This performance. market will guidance color how we and

worked and have these The We in presence So in uncertainty terrific government-mandated of with residents voting the variant office in back-to-the-office to to our Equity to markets they the of tremendous we residents and at closure cities, be other continues urban demand trend in hybrid country reopened the first, trying again lifestyle recovery our markets, see in as venues businesses and which hard results with entertainment tech and our most fully in Residential. properties, that our Seattle and continuing we or without a Interestingly, to our these fully all noise a pocket live of restaurants, rates. thank big across Francisco who a a lifestyle discuss plans which Omicron working locations amenities suburban. despite times to so are office. in remote, are anticipate heavy of crave affluent resident geared San you the is up is attracting moment. feet this see year books the their our and both base available regard these during and less whether see to XXXX low a from will occupancy unlikely, I our little for teams make deliver Absent

both just lowest January quarter. are and the quarter renewals lease in the for XXXX occupied XX.X% XX.X% the as of XX.X% over reaffirms to about fourth which at full levels the history in our fourth turnover in our in currently track nearly with are posting growth the reported year XX% record signed that new deliver resident We product on quarter. our desirability average increases achieved after We and

coming of for XXXX quarter. growth the of our In addition, The in our X% revenue majority current us from same-store existing the in This at be that best in same-store well rent $XX believe with received the growth $XX resetting and revenue we market is midpoint relief has million fourth million residents performance received at positioned will history. what leases rates. our

X, on As prices. rents our about average current that were of are paying of residents market January below XX% our XX%

be to the currently because either XXXX or few the past, cap in able loss we discussed of year As lease through capture reset that and allowable won't have are regulations the our move-ins renewals, there leases all we course this of will a in increases. to new over

In are growth the a revenues seasonal experienced steep improved particularly other year. during reflective anticipating recovery early the growth this occupancy, projected period in Strong, to is XXXX we reset, to continued debt, also contributor that capturing in growth rates bad lower comparably is intra-year from income. of weaker the more physical with growth come addition pandemic nonresidential we than the and remaining to XXXX relative typical

some in we deal retention goes level be increase. expected for concession deciding disparity strong a January stay as over QX, far, may percent the seekers, high much interestingly, just to this both their of year see seekers, with see non-deal those So percent regardless renewal our February. in residents of we from to moderation not the But XX% and versus rent many on of had who to renewing the did on. continue current put We residents meaning residents in lease are see

seasonal new market, with normal market versus this improvement XXXX. of reduction our the XXXX over which revenue competition to week levels the While pricing XX% on sizable uncertain feel and financial and power, expect approximately very an overall, and from demand the demand in XXXX. growth of is this our urban occupied will towards given over how A contribute key nearly good core in net exception a of this which to is in with from sciences, are driver of above they same-store same pricing effective is remainder world care produce markets a to XX% with pattern expected following currently X% XXXX. moment trend the pre-pandemic we with we're expected strong place, Boston, XX.X a drag With nonexistent which improving about remains the and supply, health the education use in spring, that in Beginning is provide the to from firms, the XX%. Seattle, is as concession continued and I life the portfolio, color and get I pricing XX% lab today heading at little we

of York note market. the positive that amazing. see return quick of to market been turnaround students the After is international a New period workers early pandemic, really has continue Another the we difficult a to and in the

Brooklyn. rates approximately We on our best-performing York waterfront be revenue pressure very from expect supply despite same-store the growth in is Demand New in to XX%, strong, been currently with our and Jersey new above XX% pricing XXXX are XX% is Occupancy market of of pricing some expected have concessions about XX% pre-pandemic to and residents. not improve, continue used being levels. we renewing remains over

X%. our trend making have will performer absorption even us solid seasonal one and market expect also will markets a that absorption A optimistic ground during a so growth slightly better-than-expected has market each at at pandemic, normal up up end about deliver up. revenue here. same our pattern rates This pandemic, continues XX% producing not markets so XXXX, XX,XXX of lower as to new best Coast this the continue. following This to or We that units held been of will but year, the Washington, Class steady during and does the East D.C. be of make really Occupancy multifamily strong is are in rental the

Moving of markets, heavy and to the West have other Both tech been Seattle markets. our recover to slower San Coast. Francisco, than

the certainly are tech demand, XX% occupied, respectively. and office challenges there is by deferring submarkets downtown return XX% While recovery. fuller are The to quality-of-life employers and a big ambiguity and

as leases expect But large same-store home We're of to these quality met in some will in issues combination recovery whether a job of work expect competitive or involve will renters hybrid improve term, a of in tech which and plans role want giants work overall of approximately would building activated there urban that we housing there. by life is decisions. remain many plans likely the the drivers to continue more growth remain their office. will these amounts of fully balance certainty, preferences to a civic markets. optimistic market streetscapes. balance positive produce have the in benefit highly they appears affluent to the employee growth that and attractive to through The be market. Longer Seattle's more engagement be model companies the hesitant expect their We through demand the in because XX% having from office long-term XXXX. to employees make should enjoy play urban they accumulate and here about Also, which tech of business level some It purchases, recover until markets versus a our that lifestyle to the indicates of revenue centers that space, whole or

has half predicated right tour large ramped expectations to on-site rebounded have just is the just urgency pricing currently is of portfolio and have third average we seeing receiving Occupancy our in lack not This leases good recovering Our our Demand year. improving. teams are the XXXX lot with reporting Heading our demand free. are of lead to of applications concentration the volume about to of renters we a now. user of back of sense the on concessions one primary slightly but are of power. market CBD, assets but up San a past potential Initial in a down on over yet over a levels has from Francisco, month XX.X%. sign where do

Occupancy return performer to just steady driven industry. power is strong. Los renewing are holding content We solid our San at same-store a is expect of running at to growth under currently XX% the and Occupancy is to produce continues our revenue Angeles XX.X%, are we X% of in levels gotten not pricing residents. be a with we demand market XX%, continues the Francisco the approximately in XXXX. that XXXX. back pricing only X% robust same be as online week below has portfolio pre-pandemic in by to of

revenue produce X% impact approximately have market highest residents to year. of local growth the regulations. the we the The the expect of renewing to for of percent is likely seen same-store We due

We expect strong very renew of here. County high lease and to performance show XX% good continue occupancy Diego to with to Both supporting and rents. to our XX% continue new residents San retention, remarkable Orange

strong of in expect good growth renewing year. very is and same-store market to XX% expect Denver, about X% XXXX. produce the the we revenue our XX%, have In approximately markets in of revenue XX% and we're at produce same-store We these residents. or growth to greater of Occupancy demand

markets our Dallas few of Austin. additional Atlanta, and a on Lastly, expansion thoughts

time over occupancy remains growth Garechana. in seen robust expansion the and have operations and company. assets So of far, industry The This you. good the will acquired overall that are are turn high. now markets performing continue Bob well. we newly exciting expect growth and the throughout is Thank XXXX. Demand pandemic, levels I call our to our to the for an

I'd Thanks, and our moment how going the to a and guidance investment on go in forward. statements financial continued take out out of I are of playing in our approach to on a our in platform Page X review our XXXX Michael. assumptions, innovation, our laid which detailed and Rather XX release. thought elaborate than Page through that's

the had teams results couple Over few A of our flexibility. and and teams to enhance over. have that the journey, to operations not last property enable We service sales it's years, our impressive rolling mobility in we've innovation busy been highlights both management brought out. and and

and We've analytics matching additional maximize by we've and our only the our service. how We virtual, the website moved improve intelligence examples our potential drive to on while site while self-guided rent our and ever-evolving are our we of revenue revenue, continue XX% or efficiencies to have of all These pricing. our cost artificial roommate tours of data our communication prospects to residents. to handling of XX% gross using advance to deployed of with XX/X expectations functionality provide some and lower improve amenity meeting to on increasing efforts

so We artificial decisions. our inform technology new our deploying through like to have successfully intelligence the adjusting of mentioned and use I through business data processes, our done advancing

than and growth, payroll In financial our particularly We reported XXXX, minimize most negative the we're these we prior on-site just two getting visibly expense payroll. and seen ability to X% from have benefit years, our growth after endeavors successfully reporting started. in less on-site

leader to experience, and data-driven XXXX we've our already forward. is expect at and improve This moving be That going an in Our continue and building digital advance focus success to our a have area sophistication continues continuing which excel the tools. our processes historically customer to decision-making to achieved. into means upon been to we business

growth pressures our revenue technology that efficiency, licensing and These good growth. overhead XXXX. in marries over beyond. margin we're like a driving continue to I'll accomplish our while expense our forecasted and operator Our infrastructure this, in in making innovation improvement to analytics, increasing garner for and the approach which Q&A investments In progress reduce areas significant of turn XXXX session. data teams, should and on portion should exposure ROI in investments foundational order and the to centralized journey and IT remains focused enable is data have it to benefits now

take Citi. [Operator you. from Instructions] with We'll Thank first Nick our question Joseph

transaction think, side. starting are point acquisitions and $X perspective you're dispositions, you rate. trade thinking the basis the next year a XX selling at assets buying Thank an newer over very I dilutive the mentioned assets. cap growth Maybe much. Mark, IRR you billion and on that older on about I you this know years? How few from

want I just So how underwriting to you're understand that?

demands Hey Nick, a time. we're we combination have over like Brackenridge. rent will both over higher IRRs yes, so top of but growth less feel this capital time And buying Alex as also is It's the assets higher well. line

feel really an in that like time properties we So into newer robust. these to these in very, of have have are properties where point good older in we markets we're very opportunity a trade a selling

pool any buyer seeing competition in trying for you what Are difference or Thanks. to that buy the you're the selling? assets you're versus

mean down that only went south had markets keeps investing The And a that or in bigger. office quiet coming back. come full favorite we're have New bore. And it like people are see that our people asset class. that in is apartment, now back gone investing coastal certainly, getting in it's that I York, we people north. were Just clearly away multifamily

we're a for competitive buying. for we're it's and both what what So bid selling

assistance? for what guidance does then And Thanks. assume just rental government XXXX

we of Bob. below in maybe Nick, half XXXX. We're slightly Hey roughly it's assuming what got

the group, So million. remind in we just $XX about to received XXXX,

the programs kind And we to off as go. so tailing expect of start we

what half of about got So in XXXX. we

much. very you Thank

Pawlowski our Thank you. question with Green John We'll Street. take from next

for take in of Thanks to growth. just the your step taking approaching Nick’s intermediate-term Maybe underwriting a question team how Alec, question. further, terms is

or So recent Coastal all the underwritten deal the intermediate-term versus months in currently average higher would or deals the the lower underwriting, if acquisition Sunbelt sampled you acquisition? assumptions went on the you've average and NOI be for growth side

a buying selling. there's to different. for question as a in is picked little hard specific, lot Every deal what to some we're That's so of wasn't a it obviously, And there's different kind up market both on in and answer But is the still be we're of pandemic getting selling, big quickly. you're roll, a different. rent me recovery. what some still in – rent way things every the a There's growth moved pandemic has But still there of downturn. and buying, maybe we're generally,

have still You under. leases

really source. growth we net-net, feel expansion it's a from short but medium-term markets, So coming and of the about different good these

it's Mark. Hey John,

add in to different And risks that. to each of Just markets. are the these

supercharged the and bit in serve growth more the more presence, the of and we markets. of like because have growth to So some risk the of to having see that there establish our call We the into things balanced with in think you get growth Sunbelt some have as a we markets just year I a new is And look established say is we're of established a that And in coastal to markets. bit of our recovery when you're those we growth. And markets. going just do handoff also the rent balance. intermediate that I'd markets, term you is this think us interrupting more going rent this well. these control portfolio at of diversification going

little versa. So maybe established, but there less we'll and the Sunbelt that little a pick in more and is growth vice in a up

risk-adjusted So perspective, and process thought process. a thought it's our a of diversification sort from

power So and maybe XX help drive add the months of maybe for in outer or markets engine established years some diversification the to these the machine next the years. two markets

there's Thank been persistent net question. not I fully a and trend the breakage Okay. all reported for such pricing effective blended why between Final you spreads. and Michael, large I'm sure thoughts. understand

been effective year July, – the your over So trends XX% prior. since above pricing

healthy, closer XX% expected renewal they're very – would to I to have So XX% be acknowledging expected, and of new renewal eventually. and out than new

needed. Any comments it's if is time So or there? just more I'm sure not regulation

those of little Well, I of bit a both it's factors. think

and our that in, we and subject these going are limiting kind in expect out business you're XXXX some bit the increases to on those trend original to of mostly when And I growth leases a as with are But renewal pushes ability, it more who's into a XXXX because who's right to allowable as or moving of pricing we're going written. in renewal new were that time improves, which, now to to coming next little recapture a new those then it's side mind, the that months. lead timing were one, spread in on defers the to at see renewal clearly, what lease that moving again either lease in. change regulations subject indicator through my just of and we forward that So think and of clearly, out move of the of rent that

trend, think of too, if January look you I So you're at the seeing, kind that trend.

come lease You're the change that that year then moderate against going And couple both comp see the to the half to blended. start continue little bit. first growth months back to you'll new this a year, of it and and with will start us of see of up these in to in

seeing you're but close net I going we're should realize with that think trend, those think expect you pricing ever that don't that fully numbers. to I So us effective gap

Okay, thank you.

Capital Markets. John Thank Kim question you. from with We'll next BMO our take

Thanks. Good morning.

wanted to guidance. your revenue ask same-store Just about

at in January. You had XX% signed increases leases

not same-store loss is then which low sure factors? factored do XX% these this. on rental that, growth, really top market I'm and other revenue of into You of pricing over But talked year guidance get lease. about And how end X% your to you the to of given this just your last positive of trend XX%

if this, Hey I'll stab Yes. a and anything. I'll it's with Michael, take Bob. at John, piggyback there's

lease, about terms when outlined growth in kind right. range The that And baked get much is on you of guidance to way little his because during rate. of the market flavors from rate that low the you you of, get capturing range there's just that right. lot existing of coming I'll different bit, Michael rate, as in loss most script guidance think call to you A rent the in don't think cetera. revenue end that is it's XXXX, is the of and the side, growth intra-period I a et outlined it,

pricing we what kind on high. intra imply period. get The you little period bit And that about midpoint is much it more above otherwise we we've intra we end anticipated. don't we So get if the would of trend than historical you the I the because that of trend, is the end, that's of a what higher middle end think as trend, are range a potential period volatility there And continue is balance would think kind slightly historically low imply do how intra the more than But growth. low for wider done the kind there. given little out those range. and above The what's the

do for to and reduce rest you where a straight lease expect of year? other top you difficult leases? think new the higher the think have fourth in difference between how you How you had far market rates, would basically as do just have renewal would They're And new given you do thought as each goes I that on what the the that it than goes concessions. be to more – may rather of renewals quarter.

Yes.

So is Michael. this

to good clearly, insight starts the that quarter. think in the of the first pretty into got first to see numbers. renewal new renewal you're for several performance lease going I change months the outperform We the year,

going expect kind for I And you But bit. little March, more it been go get of achieving you're around February and January, even you bit back in to right together. would going numbers and to XX%. that momentum continue. that little towards kind moderate on February corner and it's March We've around to start and see of side, we're converge year, as a then probably half you'll as kick the to see those You the turn that in line. quoting can these here We're what lease into at are think and just the quoting I months. of new see look a XX% in

thank you. Great,

next Thank you. Rick question take from We'll Evercore. with Hightower our

guys. morning, Good

on the a market, guess at I what's across we quarter. go and not new to little not pattern across different in dig rates in renewal terms by fourth I'm but So differs pretty lease – is too, example dramatic bit and right? are If consistent markets, San the the looking change market. some It's there differences. that's interesting, only the But just of down renewals. Francisco, new between

expect driving detail mean, year? that? some a with that's us market-by-market you of that there. what maybe little give Is trend the So concessions that? on I How do explains there the something to color over more

Hey, is Michael. Rick, this

just focused think, I differential the changes you seeing over the on I'll the you're and So sequential across maybe, markets momentum? you're the seeing third the fourth and the are in that quarter start, that

just basis I'm growth markets. a is being San differences all across the the looking good lease difference new of, between not a lease pattern But consistent And growth Francisco point renewal fourth quarter, example achieved and the at for versus that again, XXX achieved. call it, again, other. one

Yes.

the got So market to by market understand got go and retention. you think you I to

kind last the what's quarter York, markets caps like up that You you play of And regulation that and bumping fourth certain or period in driving use in understand against. is that. got even some you're understand San time concession limits in of that comp Francisco or XXXX the to was in this need New to of the the of year

going that that renewal lease in kind into today to and out spreads get in a the that to number some January thinking you you're little just of said, probably projection bit but of markets. about those see of stay momentum new like I be those similar change So I looking know that and just recovery would more where more going range, is

Okay.

that? did original chances XXXX, XXXX in versus that your guys than you expectations. think What exceed a bit I little with activity. that is the investment into Okay. dilution little my mean investment of the of, off forecasted XX separately kind can just call. on this points embedded net it within dig And year second Maybe we dilution then I of guidance? bit you it, that What would maybe But that basis question, helpful. in call the are better drive can

Hey Rich, it's Mark.

not wonderful. do great issues, would any have to build is we're portfolio, But goal accretion, maybe are too. to that be there is long-term Our have and trying a even dilution timing

there be just great these I'd capital these assets a what's markets slightly these our in they're dilution in guidance. lot what's properties, just in model. regulatory established challenges now, selling they number big older, in these are needs, could just but that that markets points XX of new The more tell have older slightly are Right basis you in less. it is be feels newer buying or sometimes of It's for So our us. assets, assets nice to

like feels deal even good a trade that So to us.

there think timing So I if continue to too. you'll issues, minimisly us even trade again, it's And are dilutive. de see

sell before Sometimes you and you buy nature. of that things

the on the trade fooled and of thinking team possible. to the tell his initial cap hard return be on you, that be and long-term But hand, I'll So the Alec to as is goal by as to asset. accretively about rate not other

All right, Mark. thank Thank you.

Rich. you, Thank

take now Rich Thank question with Stanley. our Hill Morgan you. from We'll next

Hey guys, We a morning, and congrats run cash very on a model. solid quarter. good

same-store that to would that provide higher little of cash what number the the cash at speak given about a would reasoning it in than be a basis. basis that Can But a us the be on didn't I wanted I on bit guidance is rent least or that. the would GAAP you're through benefits our revenue walk you number providing XH recognize if correct? XXXX. provide I think cash so And you

Yes, Rich.

this a little bit. Let's through talk

So assuming XXXX a of the basis let's in on we're talk revenue kind cash just straight number. what

right, less that have the at of our in it, of concessions we in we disclosed right. midpoint million, assuming Page $XX guidance had So call XX We're you that, cash which significantly on concessions. XXXX,

all is So cash, this to cash right.

that the And so quite the XQ that something thinking that general in normalize therefore, we're something to but we're back not assuming it's at It's annualized, we're to normal. going midpoint. ballpark

think, inverse about. So what's happening, I just the is talked what of you

it concessions. by In XXXX, from benefit XXXX, negatively GAAP in So will the concessions, impacted was number right.

gave. than just it, the points the our midpoint growth to call the we basis I just you, XX a bit range. should lower a So that at lower rate be, the number had it little on in we X% numbers than basis the outlined on midpoint that should cash guidance And year-over-year that be based

is at And at these the We're and are it's think to effective you're of generally while, the here when environment that direction. on it little net a beginning, that doing of little bit, Rich, we for is be concessions, when now you revenue than just concessionary and doing away, going that on a the would where should general add you're higher amounts tail fully that opposite now rule end a the about Mark. a were concessions and for number better means that cash The in other large issuing be a you're true bit basis. will your concessions, concession

your doing same. GAAP generally the is number So not

so trade. that's understand So just you the

that disclose difference So year, is when X.X Bob the Page on XX, versus we for X.X GAAP as said, negative cash. the full

have that around switch bit. a little to going effectively You're thing

like to going not number improving You're have you concessions did. your

hurting what concessions does. your numbers have that's to going it You're slightly. And

think XX our basis I number is lower. So points cash

lower nine the points basis XX about than It's the at midpoint.

you've on X.X cash than more the an like So year-over-year nine. a basis got

January. But of from understand. it. is sort be But you guys. about I reported, next I is clear, and whole to across leases think heard I capturing It – peers And leases. to growth. months, important crystal forward as your a right new It's think be because the out. going disclosure what to for decelerate probably therefore, to what can going us it's the quarters you be you to XX% renewal to you I to be can will begin showed the lower, blended. might really the but expecting that and you that? the as just people That's Is probably in the come transparency in as what high here. a you I'm pushed – we look higher means were which not some the is I you thought about to way extend were as some spread because half of it a than looking the be think to couple obviously of back the what it's telling state expect why couple And start want forward I'm that not never I to that's near-term But out guide asking in second next of XXXX of year. uniformity appreciate Got steady about looking not XX% to to blended how question was and into the not XXXX, XXXX.

into it it pushes defers It absolutely. Yes, next year. the and

you it's But matter It's said, to of things. the It's maturity schedule, year little Michael clear, all of changes. unless little market this get change. of on, thing just pressure, be when. will bit a depends So bit get falls whether And a you'll that just regulatory into the all sorts or lease that just the of as whole those XXXX. a

Got it.

if XX.X% between let's And up, rolling so said about and going another XXXX? should difference the than put you're less that to that just say, into way, blended, XX.X% we slightly think XX%

Yes. whether year that is looks I way early mean, I intra-period it's mean, of a like growth timing think the model. on yes, fair what going to growth, I think I or But that's a in the later. depend to lot and

it. I you appreciate thank guys. Okay,

take Scotiabank. Nick now question next We'll with you. from Yulico our Thank

Thanks. Good everyone. morning,

in little maybe could the demand – San you're different more pricing and I could In bit terms you but doing a hoping talk you said not in about submarkets the good was Francisco power, about that's talk Area, of Bay that Area? maybe in, Bay you how

Nick, Michael. Hey this is Yes.

a So clearly, right. divergence, there's

of the Francisco, is has With spread pricing. that pronounced most to area pre-pandemic the the city the San

really you is came the just of top peninsula pockets your on that to kind units way pre-pandemic just pre-pandemic. of And actually top right as of pricing. East that peninsula like approaching is that it. the on You it's also that Bay, South Bay through the market, in have that's work area, right The X,XXX despite the

So is off of you Francisco. of roll it's from market the it I you at pricing, And X% there. city that we're just level, signs returning seeing still the pre-pandemic what down in and demand the up think we're when that mostly San of have weighted

that question because fast the year just is it, quite But You that fully this the of have just are to yield growth it get into the versus to how need don't pricing year that everything. to get in revenue XXXX. earlier going deferring you signs can power the the get more it's and enough there, to you recapture the we price to

helpful. Okay. Thanks Michael. That's

timing same-store still been Page How about that additive and bad XXXX you a growth getting quarters. standpoint, a it's the X% play continuing for is number X are think couple to out that revenue same quarterly should debt stuff two Going that's of we that quarters? a that last from over benefit number that been on the the your under from to the to of in an just benefit standpoint,

Yes.

So hey, Nick, Bob. it's

how Let that into me talk about two factors that we as the XXXX. modeled number kind of in competing we about it go think

So factors competing right. one the of is assistance, rental the

not on we'll programs expect rental and bit to that assistance, to half, reduce XXXX talked because little that think front into So I that be we completely right. about earlier number, a are the the trail done. expect which do we call, we would And

is that paying, on in actual the the opposite not basis. more terms And front how you half of kind expect probably benefit a The occur, who's just We but behavior resident paying progresses. do back will and so to who's that that for factor that's half competing benefit of loaded.

you're to maybe those to the debt will those up all relative a We on sub-X% on years constant, that's factors plays as think kind in driving having, the your of XXXX factors level will think how do quarter. that through depending So is absolute end with basis bad go an debt. this bad be lower the something two that kind But what I little throughout going out XXXX. you the be are are both pretty of

CFO me. XX bit Mark with old been the I'm will these and here Michael bad of points now. that – maybe write-offs the But this basis They getting because job XX are And residents of before team precision pandemic, or a these you're playing job money. doing the we'll some went the doing variable government actually pandemic. considerably rental in revenues. days It's have And our Bob not help debt more the during and numbers our give I'm just up of of generally obviously relief getting because – great now our little pretty anymore.

and in range still aren't, probably are number needs to run there's for So a processes. restrictions that's system X.X% it's Nick. they the question And is the – slow stuff the on some just the because eviction still there where year through, there's rate still just work the

were higher feeling is number, enough than so but the a most it's normal through a sense than considerably So that of Bob? or we our X.X% Is good year lower XXXX.

Yes.

specific. even So more

of like to year all XXXX. So A million halfway call have would We close more get something get to bad but in way might been Mark's net assistance the there the XX%. XXXX. rental to $XX-odd normal point, we it, won't in have, debt of back XX%, we

So million we'll bad to $XX in is add included of $XX million what call we've something it, our debt that's, guidance.

Okay. Very helpful, guys.

Just renewals. the one quick on follow-up

something the this is year. I you renewal mean pretty about, felt talked over into year? this assume guidance baked that You keeping pricing for should about renewals for XX% we growth good

some strong. I going turn the XX% be moderation. year Well, you this renewal. corner And going the you to these should first of the year, on part to remember expect to of then in as think back numbers It's the is that think half be is I no, what the need you

So throughout XX%, a at but I'm stay the XX% we're below to I year. think don't sure going whole it's not materially run

everyone. thanks Okay,

Sachs. now question Thank from Goldman you. Luthra take next with Chandni our We'll

Hi, congratulations strong on a quarter.

have extended. So challenges, have December talked Toll and experiencing Builders your about relationship They I'd kind about cycle with labor getting obviously times. like materials to of their also Brothers. cycle widespread of times own sort extending talk in Brothers about disruption. Toll been its talked

your deliver timing you developments to are change then expect within that any you of first set perspective, when And from a seeing the standpoint? do there what So relationship? from

Sure, is Alec. and this

our anything – with don't construction. I yes. But working that's right. the it's information we're I on Toll, in haven't that other So that any can have what we're a projects seeing with timing, under of and venture partners, ground broken question joint for on say something Toll-specific on we

well. whether by a or true the not us have but project and not competitors things pushed that's matter months of And of it's So out our many done. as of gets

the getting need. substitute people inventory So chain they challenges, finding that or either around are the by supply warehousing products

So been more, more time. have on But rising. hand, rents the taking little little a costing a other

yields sure changed. have most in not materially cases, I'm So

we at apartment that an thing say single-family versus assembly are business, line a of in different we other construction I would is The moment. home construction. mean a that's more

of You And just times. X,XXX It's them time than single-family windows, need period to you need have a right a cycle home. now. longer apartment we lot us, longer build for single an building

maybe don't all do have is. you you have but windows, the or the whatever situation the wall maybe So dry you can

things a manage you just in sometimes at different can't component. house of least to kind in you just go probably can the a deliver little a bit process, and I you You think key apartments, all than stage you can have that better Well knock out. don't can if the at because

And on then your I'd to up Understood. follow outlook. expense like

controlled that gave if how of a XXXX look tailwind. X.X%. XXXX back you at were growth expenses then and And in was your payroll go of very So kind and sort XXXX over a on and obviously, big XXXX, well some and little color were you

such As the if what we that with midpoint Besides as taxes, X%. of think about utilities, factors categories about XXXX helping big are payroll, cetera? other you are think et the repair,

Yes.

XXXX, continue we real – taxes. is the in start biggest estate which So help it let's a to be with it to because category expect is was as it

well. we estate to has do trend. timing to do as And lot So grow a expect of taxes, below with that real

of real different on years, calendar are not they're some on estate so So years. jurisdictions fiscal the

locked got just is general lower already or that values the rates are jurisdiction assessed we've the health So lower of that and better. or like are

So a bit through. kind flowing continuation have that we little of of

estate kind X% taxes to in three more expect more of we'd taxes be So and XXXX estate were to than real around historical a real four. or maybe rate growth

probably Utilities will you The hit average. be mixed, and will the upon. little will be drive assistance. probably that above some payroll, So a R&M I of think already

on as little on bit prices of utility to with commodity I to of other factors we've the late. on think how resident. back able A where a a we're pass of relief seen depends variety that it the and utilities areas lot flows of price through

a a of controls payroll, geography combo of from kind more continuing good and benefiting taxes. it's piece the also to So manage than initiatives expense then it's impact real with R&M But associated and net-net of the overall. estate

Got it, thank you.

We'll from take with Thank Brad our next you. RBC. question Heffern

morning, Hey, good everyone.

XXXX trajectory you the XXXX. be Can next million and talk number the development maybe to is the you what over in $XXX any about years? in have that On few front, starts expected and

million working billion hoping that it ready kind time. probably we're a somewhere Yes, was go. jump-starting $X $XXX grow and on Alec. over to which projects that $X program, these $X.X of to pipeline. But helpful to growing be is This million Toll was we're our This year billion or between $XXX will had the billion. to that three

how higher the some broadly rates with eventually that up sort of Okay. have expectations underlying Got see it. end front, rates? you of enough likely And transaction to think things growth going to Or sort then up increased just the on that Are lag? the do think place? cap same in respond value the market do is these move we to you

camp, that in latter where Yes. value Mark, Brad, take we're about are. I or staying, mean, it's give they

pretty manageable value. going rates interest think are up for I

rates hard durable and the that crisis I of treasury take, last guess also short bit. and XXX hit how the trajectory the like is two I mean, prospects great about you decline given back bit we to apartment think, the on estate good were XX-year real up. spread, few even sorts I in I seems industry's that that growth rates but between the I the capital last proven talked wonder premium you – right into it and heard familiar the rates different multifamily has long a being risk and And what pretty be of feel there's to history at well this a a should basis give go of So and Fed all prevailing biggest and the going know you we're and customary cash years. think cap in the forward. years during that going a we apartments. with into rates quoted if on and least I to of moving think responding flow numbers, number wall billion be about $XXX in was, specifically and more. cap wants as call points you're imagine or of I or

I a So that creates think as floor well.

doesn't long you're going rates our So cash into good. also interest as I recession. is as up, will And think crush growth going and growth. take that get real the flow to nominal remain a sense both and economy whole pretty serious Values

your applying to as well next you're I years. is that think So your few rate over improve cap the NOI going too,

Great, appreciate the color. Thanks.

Thank you.

take Sandler. next Thank our question with Goldfarb from We'll Alexander Piper you.

good Hey, there. morning out

from free clear is on last to by the driven burn to opening the going increases, comments were lot rent rent Just year. you a guys this off of the that back the of be going year and

perspective what they get is were getting you're just if that two going X%, rate, able last basically, face-to-face months of two not rents free free on had reflecting the actual on based up? on they're last that sending comparison, a I'm XX%, year out how are that much you in it paying face some paying rent just call that the new it, So rents increase. Just sort is someone to Or X%? whatever months to they're trying are face apples-to-apples now year, the to raise now.

this Alex, Michael. Hey is

for with I'll bit. maybe So start this a little

of couple look that. a to at ways there's So

that outside quarter around and a a and look use lease the the look is you you in effective at First, a January, prior almost of impact about where I'd to it's can go if and way I'll That's gross are XX when without can blended like net at impact difference at right the point and point kind better think a that kind between you say basis. say just look loss new about effective lease XXX basis But XX%. we period. about today is have the concessions of statistics basis, year, point a net it's concession you either the approaching we effective regard up about and in gross net activity of on to around to by year that kind of this a into being tell concessions that on you, last impact. the XXX at or a basis any lifted this – so from And like a fourth of renewal basis any

loss on through the opportunity rate, XX.XX% to you into allows some So that's and about work XXXX have way lease and just a capture you of fold that XXXX. rate. right that to that will your now And

So then just really not push on mark-to-market from necessarily if the rate, that is bulk the you're capture of ability rents? inability restricted purely markets really your concessions, saying your you're to where is to

right, on That's timing, not And January Alex, leases X. other. all expire, the

X. it's so some don't certainly, our mean don't just it's January – there's also little restrictions, overrule there's leases but – bit both. timing. – in to got a it's you of We particularly regulatory little Mark, So Southern I California, a

money get So that what next the we that do is we year.

take contribute through I about that to And the So concession. the to that pain system. just we is mean talk going to all did XXXX.

Our that. felt shareholders

concession real So that will the that get there that some cash is fact we flow didn't get. is makeup. mean I we

reduction So had that we're it now an – charge. accounting I implying you're isn't but true this, don't back. a cash getting it we It flow is think isn't

look, you, not no wants with Yes. to get Look, for paid Mark. agree Totally landlord rent.

of the these giving But great you're if the question that things that the whatever you that you're the basis yield that that being cash X? that you're on what's X? awesome. long But rates a a Because selling you Is your So assets, Is The Obviously, yield time about current cap on your great a you've a up, giving is is lot X.X, think if correct? about lower, those owned second selling. some you're sale. on with X? assets that think basis up? like

Mark. Well, – it's going to I'm

we Just cash is we you, think the to the disposition it is forward sold quote ask what yield price a at. question. we flow X.X The based on

if what it we assets. So kept is EQR gotten have would these had

this about just company the sale Accounting mean, price historic sale. to so of so and apartments, give value in basis this gain actual of, our the book in the on of I book we talking our investing compared most very depreciation. that, Chief conversation to have is Officer, just sense that It's guess, actual you're half vast or majority at is if is, perspective because we had you good So a I of with what

know fair up. the it's don't the say is book reflection EQR to perspective I cash that's And So the you, that value of flow good if helpful? relevant. X.X is helpful but But Is is book why about terribly not to sure value, the a gave I'm half.

that yielding Yes, Mark, like you. It the that X.X% sounds double it. That's because yes. – had you're was investment an you obviously, before, selling

get to that you're So perspective I'm as the just reinvesting trying capital.

don't I about market. asset you're Yes. again, know double to the failing to because, mark

If you – I here. mean, we don't operate on a historic basis

in often worth at be It an or only its and less. say, look asset it's And our more more. value. book case, worth You net can it's worth don't

by confused denominator little flow net a I'm value using that So your of your as the book numerator. cash comparison with as

sold I moment, at worth denominator is the cash numerator and think asset right. you you what your forward asset think for the flow the is your is

yes. Yes,

You question, so my thank Anyway, answered set. we're all listen, you.

Thank you.

Operator, question? have another do we

We'll question from take next our Powell Anthony Barclays. with

about morning. Hey, Question renewals. good

that said And you curious, rates or does your environment? that renewal prefer I'm think to less the renewals in just normalize? what current ever the You Do you? matter more among been. you causes were to do it highest they've

outstanding retention, service I an Michael. this we We So deliver clearly, customer residents. is right. to our mean, want

residents as us. and our with want a quote that a market to using price have we're stay we We

influenced as some next that of call us, do increases, you below that's a those the of deferral have we've of I'm be there not residents into it, and the to of that market and And is you that what just think some of the what that percent keeping bit year. right being by putting that could again. about or increases they're couple I to should the don't that well our I renewing. current revenue is now, on been and going is, I affordability super high, moderation But I as that, is rate of on, it's year mean little the see that So see us, retention retention you could to regulations think a areas us is retention an out think material. are on expect we guessing goes residents But telling see that by probably issue. signing a the with it's

think see strong a around. up we a bit on based moving retention may You the and year. increase little then through tick expect But to of see I

activity for buying? what you're is rates that acquisition what of low to your some rates asked on you me cap now? call some even sales of But coming for capital of it, than the times thanks. maybe a space, given and continued in more I on see to you're some noncore selling you one for expect it Got expansion target And you about contraction the see into some Or disposition. expect cap terms the those do sales talked on the already. and in do few you

right. seller, of We're a rates the seeing flow across cap We're kind very also board. tactical

a lot interest if York. New was – a there market year, has last York lot a in in bids not New particular like – didn't of feel So a we of got

we didn't sell. So

Now differently. we're feeling

markets, is dispositions that. the a on same investor the property but going and interest a and sources acquisitions, we'll and we're roughly the low under cap contract, said, to broad And We the as paying rates. continue have match at Mark get here with rate to uses across for cap

thank Right, you.

you. Thank

Thank you. our Rob from with Janney. question next We'll take Stevenson

tours have and guys. recurring you and you payroll new what and allowed are negative did the AI expecting what to the in XXXX spend on-site guys self-guided the growth? you spend technology Bob, to on morning, XXXX? Good that And in

Yes.

years. things related of thing. in So and in and XXXX the I'll here. and AI the to There's in spent other that actually investments of fairness, were chime Most chicken in prior Michael little a results let egg the bit yielded

relatively like in the way, by $X So AI, I think, the typically, what technology sub see which investment overhead is or was million. inexpensive, you the

then the reduction first the happen payroll staffing. investment the the of in to change as enabler, that you and or on-site see see in You kind begin the

of we're I our overhead my when growth a forward XXXX, a to then and staffing, the that a tech, it's alluded is phase so comments in et what And of that's to once on. that in cetera. move in in technology, of centralization lot driven where lot of position we're you some investment It's again above-trend

it, call growth So in maybe the embedded rate. $X there's, or kind prop least management million at million $X of

But we think lot don't investments Geographies seeing these we you've again that are our presentation and a geographies, some what of is the XXXX, matter, out of seen the of into in XXXX investment it and a come in numbers. very When the of growth know, You're XXXX so that decks, going do. it's and flow bottom line potential between cash ROI-focused. make just that. you some

or of centralization look regardless we technology overall do positive gets geography. invest is a what in in so And that invest to to ROI

you're Okay. Mark, anything impact, this initiative have a enacted? significant could about worried incremental that from a if legislative, regulatory, at that perspective point ballot

populist Well, new to we're that probably feeling York is the crime New have in solving been wants a in government I seems by about New thinking think issue way. places. York, couple a elected and mayor little problem a good, thoughtful better of the practical in a in certainly

governor in positive. – that's factors that's real a and real of how with estate So lot we has estate. work understands experience market think The

not system focus the that's continue So think little be eviction need adjust then keep would San that keep thing expiration seems those should or fund itself. COVID a I our emergency of that that to of the sort, by we a to needs for but passed to in of of some kind the the people like whatnot. programs on government And vouchers measures and going sort, homes cause concerns markets, as as to those be little We welcome probably lot, if that good that's our smidge justified and Francisco, there's on sorts time do that – terms city of foremost enhanced well. in California, then in we'll New has so minds. something probably New of the And to of I will said, I I we concern and on think a about. feel local think And X a it's prohibition some we quality a there mean I our eye there eviction is again, of about in shortly And the feel do well. of with have maybe thing and that. be about But York, in that an better other in York. moratoriums. in say life better more whether policymaking Seattle or

the then million me, for What one related $XX charge impairment one to? And was Okay. last the Bob. in quarter

Yes.

specific related from review impairment and assets anticipate that Los bank at land and specific don't sheet, an you at parcel our But parcel and standpoint. of all very a to of longer intent that a in change notice development our a land downtown looking periodically have thorough all. largely much from our balance We So to in we charge. no we that Angeles is of land can obviously drove land pursuing a related that do it standpoint what

guys. thanks Okay,

Thank you.

We'll Haendel you. next question take Thank from St. our now

Mizuho. with Juste

to that I of call portfolio to wood did I one-third mentioned getting looks you. early know you earlier. back. California. balance you just a if that there's one-third time bit outlined in forma balance Thank to the line there. – your you outline also, like you then And chop for the Hey, kind a in wanted don't go it more that California, pro

you're California. So a lot chatter what keep and seeing for seeing far that a you maybe about you're curious buy hearing in that to as part talk of is profile end California. Thanks. level there? just I'm less that, can close We demand of on the of

Mark. it's the on and what's to I'm about to timing, I'm start Haendel, California the side. to going going sales leave with going in Alec talk

XXXX. more and is few $X sold of So sells. billion There was it a mean, take I years. the on end of towards goal a will buys lot our products

for both makes to sense first but little we'll the XXXX so be not to than love buy do pretty that billion, quarter side. on as do and only And a busy, sell is yet quieter. as $X that's We'd the much more common the

the this of strong our more markets. are the expect think you several years going say, I'd But should benefit recovery take in effectuate. established to the to the meantime, in I So get holders fully to

adding And New over we're going some XXXX. own going that And we're in a to then New a with Sunbelt be hopefully, York, timed to market you'll is And be performance exposure York I so time. again, market continue see lot in markets that our drop in that terrific the well improvements will and to of in think, to exposure.

more for I to be sure so we I've to balance think And spoken that until it couple going years get a of. is

Alec. is this and – investor to as And

is we do way a analogous appetite. the has also there. cases, lagging investor slightly looking buying, York, And we but it's newer behind of that. little I from focused. to very San the downtown As been a continue see transactions value-add needed see that the we're very recover And which we in that but trade. Francisco full that older property many been transaction. in that think into just different you on we stuff exception both before at level, And to rent it's market San a we're It's wait New to any where has much significant right a somewhat interest tent a not really bidding it's such XX now, typically interest. the buyer to investor felt Francisco. is The same sold both that, There California, and from to that for is don't also starting where Also to months market sales a more ago, lot Otherwise, selling robust.

it. assuming open that. Got the that, bit over portfolio fast-tracking something to couple identified years? to you of more you just itself and use proceeds? should Mark, it. next Got a want have of present Appreciate this rationally manage is here you're a Or

a that repeat Would up that broke didn't I apologize. you – I question? little.

a of – should are theoretically, the you. that, I California out you tracking was portfolio... maybe asking recycling to Would asset you be there fast open

move that or portfolios there the an lot getting lot traded want, great place in the or They're but And that not or great market opportunity it. seen older all that we're the a buying get along. makes goal we of few we've have Listen, either that trade If trades price. sort, a open looking a product and try frailties. they're they was been of be Absolutely. is wrong have all of have frankly, anywhere we'd to a where for And sense both. may over a price. a But that sorts to this if you're make offered assets, of we're assets we

make it So otherwise, have the sense strategy. you to need relative to

love a Alec a lot focused by. not we'd So come his portfolio seen acquisition. super and that. our those that team are wheelhouse We've on opportunities in were of

your more your bit A Z the a question. reference One I cohort thoughts. on to question, Great. curious of Gen was just earlier. by but intrigued

short cohort that Looking but million millennial it. of preceded large the $XX at million of the numbers, the group there noticeably $XX

of as rentership more as enticed how in that just single-family maybe guess perhaps what set beneficiary a this a to a they wondering millennials? they appear impacting ahead, this I differ of do be itself I'm services. of more have curious you or Thanks. the rate some at cohort, less of kind on is collection aging then learned to millennial, demand of plays the like be the would I'm or side from anything about less potentially up in kind be to out also point. perhaps And thinking and millennials, But the some growth point you follow-up, bit So maybe at how kind

Well, launched. and there it And immigration at much if we generation some there's I to out two I in smaller might I hope And Gen the we team there, my see cohort a policies. up in end sensible have was. contribute that I don't the rest being think I the the I'm lot know all Zers large. sure get will mean that to house as not smaller than of very very answer. want sitting or – with millennial much of

been these homes. P&Ls, fair put percent pretty rentership. also lot documented to besides But capture good those capture the raw of savings think of continue down mean ownership not I the purchase the are a of those apartment that in people earnings it's we're I millennials. good world a single-family well or what versus power. rentership a to numbers, amount have going pretty home and captured to necessarily So there's And folks of lot

and they of lot going longer a so with stay are from And those that rentership. to value folks us, flexibility

up that, on research continue sense, ownership to millennials certainly though of are So going part ages. pretty have a population going millennial this and of as share seen percentages the even we're to been think and that again, our we've I is that even good it have

is renter XX old portfolio. average years in Our our

of a our it's some So older little than competitors.

So in watermark I still think for are terms generation high millennial of the approaching the largest year single of we population. the

So that good. feels all

I think the runway for is apartments good. demographics and really

for live in have things we front going we're the of at those we're all some product in good what market in really move what the think cheap. into apartments. I of I We at us. have opportunity since maybe renters build opposed residential opportunity challenged front But out an us places new terms us aren't That things to and in good the really be trying trade a if things, all this now that. that wonder U.S. is especially about isn't to think of to is older seems of like too. of in right the time. of business, product new portfolio at into that's as best the company. those In we right regulatory some us But single-family and opportunity front to the good We're good XX-or-so affluent things, and really apartments, managing other for can We

roles. is property think certainly have I worked there single-family in analogous type employees pretty of So and plenty senior our ex

fair So But perspective, it isn't bit. we about the bit from is that, immediate it it. we think a something about opportunity. And fair know my a

time. thank the listen, Well, for thoughts. the you Appreciate Great.

Thanks Haendel.

our take next now We'll Joseph question you. Nick Citi. Thank from with

on York up and let's California the line take And Hey, will out or through portfolio assets Bilerman. $X Seattle. that this if of call of year rotate New billion like billion Mark, about, it's $X $X to just we a diagonal I recognize in refined it, can starting of you it's idea into billion years. three stay the Michael

in Have been to assets a of outright. larger assume any given joint selling an because I out there presence is that residential that mindset, you thought a a your have manage owning it the markets, these of there would better? as no, be or XX% completely like given opportunity You've lot your to want an just there's stub do capital maybe amount a Or and just fair market? is of I is operator an not to out fund or would continuing in a and interest asset venture equity

There are open probably ventures. places joint them. to to open more we're We're where some

part of is whole. selling taxes, place selling Selling with For than better. halves example, twice Francisco maybe very much better city a high transfer we're one the San as in is

are to we money. Michael, guess, it. of open different That's a I So pocket

a be exposure. to sold, asset but like will be in challenged, sell just we into don't those an assets people. the are a want submarket an think If partner just there needs all to that know We asset and put conversations. little we we have certainly have to just it. want we're We We overexposed less to

ahead just open been switch of to important portfolio we're had buy, open We've like we're to larger conversations. gone honestly, and and those sell and kind But XXX% and that. on that, And has the JVs good. So the that. of we've But the most market that. we so found we'd to darn that dispositions hit is then everything, all to part of more done

the one new a finding So of new days me of probably, that more a he that else. to XX of would of And apartments. concerns about go product, how reinvest most get in doing is million is limiter would those need than in we on that Alec, big great sudden, anything all cash Michael, bunch trades $XXX

selling – think talked But it being about I mean you rather sudden of there's attractive right? issue potentially. I you cash know that think I about, just rents too, than flow your to just know the So longer back I how a all equity do. is levels, peak don't takes assets, you guess, becomes how to do element rather grow an it your than base? about at growing your stock to assets. selling maybe

mean, buy. there, the debt. out again If you hope, I things suggestion we create finding to grow. to Well, lot We're The be some there Yes. intend engine, we to will using to might Michael, do in It's development very was growth. a made. buy and interested open we

is business and of a cash flow would this flow We to we of have start We'll and think the – be a lot apartment business. of debt cash growth. capacity, asset and love equity a to buying, great time That's just in have lot get we'd maybe a from love both the bigger. little growth to get bit existing

both buy. of trading those We'll wanting set is lot pull So limiter equity lever, The was there being opportunity go. our your pull JV we'll for in, things of to I'd tell acquire pull the questions. the a if better good great has more to to a very a us With not way levers. such lever, market us on to the been probably it tough activity you

a to then XXXXs the pre-pandemic, market transaction, know versus history, you I But other Right. gone larger the times, market with obviously, a culminated available as about all six relative different to you. of And – just thinking large just has it at have and deal that a larger are much to methodology? through, this some times the core the sort Starwood and least EQR to I markets. into put – as company I at think has you be as repositioning for transaction guess year-by-year of back your back repositioning going they've company gone

doing transactionalists. I opportunity there. to a portfolio. But right, XX presents set see you're know the into to assets or at that deals. the mean we react we'll And the itself. I at We're integrate set I appreciate because how more large comment We time opportunity out good don't again, are that

rather the we'll hurry in it this we're that. with hard agree guess I process, be rather abstract such lower done to realignment that process. I So assets. the by EQR not in you. do to would be with but That done it's But quality I'd react buying part, a with

you great. Florida. See in Okay,

there. you See

you. Bank take question with from next of Joshua We'll America. Dennerlein our Thank

comment Hey, guidance how remind wanted to just ranges spoke guys. rate I intra-period same-store you where to to growth. earlier an what just and about the the trend kind trend you Can you rate a think about – mentioned ask growth about seasonality? me of and intra-period is follow-up

Yes.

XXXX, about – So like maybe XXXX and right. typical, I'll use if is of you think kind

for high have in typical been in start to the you kind – start the of quarter. of first Xs, So it low in Xs bit business tends would this something little rent trend terms growth a and

second beginning the in quarter season. build You at of the lease the

and typically as little then You get quarter. peak to bit have you in you sequential the third decline fourth the quarter a a of rent

pricing years, So as that you trend be kind of in would other a typical looked right.

from revenue your capture leases of not obviously write we about don't on to Now you're all a you talked all that going X:X. because standpoint,

what half on in terms outlook, performance revenue maybe based you year. the given it – have capture outlined You in actual of I of a

much high So little strength of that's the we've same or in see kind – of and little right, terms results we but that right, above is is that that to of is a your guidance that If shape to what to our the push bit curve that's is I is of higher guidance even trend. range range. the bit think follow like more in that we actual your trend, results going end is mid-single something guidance above – or What approaching it trend. a than digits the continue above, that that trend, of your assumed the guidance XXXX about kind to

below was will of get bottom push saying of three towards that, you're you down and that I call that end no kind the trend If range. the growth, it, you

drag then cap that function I of difference helpful. That's rates is maybe points what a just very and appreciate timing a or And in recycling, selling? Okay. XX you're that. that across basis buying capital from

we Mark. of have or just to model. have either any. NOI again and disposition from But be year year, it's with just it by to it the in it be goal be can thus early that. kind But It Alec in can in is didn't for Yes, our like accretive. this be any early the year and could one. not buying our more It's selling having more having be from can from virtue It gone either. or accretion of And

So tell I'd either I you. or, guess,

XX drag negative this P&L just somewhere multiply EQR's $X it that's points, take by basis in You on the billion activity. model

had a Okay. year none. sounds source It you potential like upside, last Awesome. of

correctly. reading guys. if it Thanks So I'm

you. Thank

for I'd there back are to Mr. Thank Mark no you. like remarks. Parrell to appears any It or this at further questions closing time. additional the turn call

time of Well, thank the in up offices you you conferences for are months. Thank Stay your to very you look in well. We your over few coming next seeing today. person all many the forward at much. that and

you today's concludes call. participation. your This Thank for

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