Camden Property Trust (CPT) 3 Feb 232022 Q4 Earnings call transcript

Good morning. And welcome to Camden Property Trust Fourth Quarter 2022 Earnings Conference Call. I am Kim Callahan, Senior Vice President of Investor Relations.

Joining me today are Ric Campo, Camden’s Chairman and Chief Executive Officer; Keith Oden, Executive Vice Chairman and President; and Alex Jessett, Chief Financial Officer.

Today’s event is being webcast through the Investors section of our website at camdenliving.com and a replay will be available this afternoon.

e-mail slide slides conjunction on will later or a remarks our our have today those and also by will presentation with in prepared website We request. upon be available [Operator Instructions]

listen-only in ask being to And recorded. be will afterwards. participants mode the that questions event presentation this note during please opportunity with is All

These guarantees on Before our I remarks, that future prepared we expectations our involve uncertainties everyone forward-looking current be risks not differ will that actual making would from we statements and performance and could beliefs. begin expectations. of results statements like based are materially to and advise to cause

Further we on represent supplement management’s information subsequent our and encourage in you company found current opinions to events. of today’s call and Any risks no or about made update can the obligation review to be statements these SEC filings with assumes because the them. statements these forward-looking

complete of a at fourth on section be this Investors quarter Camden’s release discussed it call. in measures, the earnings XXXX includes which non-GAAP reconciliations our will As financial reminder, to is website and camdenliving.com available

e-mail rejoin If We respond queue additional speak hope additional call within then that you the to to the would you one concludes. after if our or with we call discuss. questions queue limit are your in to unable items happy to everyone two, and to we have questions by we be hour complete ask the to phone today,

At over Ric time, to Campo. this will turn I call the

ask to I for to recall. multifamily is peak. hoping was valuations seem which The ourselves waiting these is year’s for patiently, what be to theme assets bid find Our doing as Sellers today’s return can on-hold we days. last as wide ever music for spread

value be until the point Some sellers and reckon sellers valuations middle. backdrop buyers that last won’t adjust result their current now but in somewhere versus decline valuation XX% a resolved views year buyers of and in be is acknowledge the should lower. standoff on different XX%, dramatically to macro The to a and meet

we do brief which and sums debating that a then, spent easier making wait me. something This waiting hours up versus Keith Keith merits patiently the the lot months recent of to in Until video is I happen patiently, for now. have than

Presentation] [Video

with any our better, history. and years by been operating Camden two having guidance was quarter. being XXXX By product measure, the end never environment top right had the over the of Operating guidance has best raised our driven exceeded markets best in the and in the best We teams. XX-year conditions every last have the

was demand driving of be in-migration Apartment driven the pandemic job and to opportunities. business-friendly by that an to after sooner outsized continue acceleration markets our open more

rental release government doubled parents added and apartment could demand their And not supply keep as of buying savings subsequent with were to at up from previously with home or their people as increased a demand. massive who power, stimulus result, up a

purchasing than the housing strong. affordable and XXXX a for home still rents, more market our will remains a savings prices consumers rise Consumers return markets excess have many rates. in rising remain homes apartments normal demand the in and given Despite be market. interest to job more

need into great quality, business. derivatives, slowing live well-managed to will us a think and will be a live are choose second need like in. Most to to or perspective. continue but put to negative place high will I don’t we of and things Consumers revenue always properties Apartments

last Camden. our record XX X.X% rate breaking off years last are revenue growth, achieved year’s growth the XX.X% growth absent over We XXXX, for would be revenue growth projected for sixth XXXX coming projecting highest the

their want a give teammates to job lives, XXXX, across to well for lives done Camden for a America point, like shout I in stakeholder’s time. improving a lives, our I’d one at out experience to customer’s this and At big thank and teams them

let Keith over Thank now. will I call you. the take And

Ric. Thanks,

have a year the you and during their markets assigning in performance at ranking know, our letter grades each our of many tradition order As to of we of in of forecast XXXX. expected beginning conditions markets

portfolio We currently an outlook an grade A- with to our stable with overall last A as year. compared as moderating a a outlook

Our our slide screen the posted full card is website is included of call after be which showing our slide today’s report will on on as earnings part and call. deck, now

X.XX% XXXX anticipated same-property at guidance this last of time At of midpoint the [ph] revenue year, range. we growth our

of a for night, announced for XX.X% original portfolio level last we company. marking well our expectations same-property revenue ahead our and of growth of growth XXXX, record As Camden’s overall property achieved same revenue

While to of long-term calls X.X% expected our at another range, revenue for average during for year conditions above growth our which of midpoint outlook would same-property moderate our of the mark are portfolio. guidance XXXX, growth

that LA, range We our the X.X% for markets within once within anticipate same-property revenue be growth should and Florida range. and Orange Orlando, our side positive on outliers with this again Southeast below County falling most likely The Tampa, of to the falling markets, to portfolio, with include Houston three X.X% year Florida X%.

will today The the or outlook. and job us the uncertain of magnitude even XXXX job we to wildcard, our losses outperform focused market a growth Sunbelt is macroeconomic expect allow but U.S. footprint remains environment

to amidst in see and XXXX, reluctance rates for single-family given to a environment. transition for uncertain the homes this demand buyers would-be from homes to economic expect high make continued We apartment mortgage homeownership

forecasts for markets for outlook several for dramatically. demand and job and job XXXX, supply third-party growth in the both varies scenarios our and or losses recession reviewed We

supply XX focusing markets As more year. completions the such, this major and deliveries and aspect expected our in I my will spend today time on

new but XXXX. a our of projection completions bit, across the during our course also vary assumes markets quite estimates approximately baseline Those XXX,XXX

again with Our three Southeast Florida markets, and but ratings Tampa once Orlando, Florida moderating outlooks. earned A+

and a markets we had these year. to of three XXXX expect to Overall, between likely in completions increase weighted XX,XXX budgeted units, of average These X,XXX X% and X% are revenue will respectively. growth XX,XXX, XX.X% achieve markets in this supply and

but next revenue rating outlooks XXXX to A same Nashville for we reporting anticipate XXXX. of our and X% for X% moderating growth first of and an will three of same-property Raleigh versus these each markets. property Nashville, year This for with be would statistics Charlotte, rank

New headwind a to demand overall levels in strong. be but and this will trends of particularly year, remain continue Nashville, in-migration supply

Our estimates these new deliveries for in markets respectively. X,XXX XX,XXX, units, are XX,XXX and

should temper or Up is so. so next many a to to year, units of XX,XXX with from growth strong homes. see should for will received moderate Dallas new rate apartment which X% levels completed drivers XX,XXX units Phoenix, Phoenix which remain far year, another are of and further Dallas revenue double-digit outlooks. likely this A- stable deliver and ratings absorption but this more around allow demand

with and online approximately around revenue year. expect the apartments them around Denver and to growth our to an expected apartments for are over XX,XXX this in We XX,XXX Austin as pack to projected would A- the rate Denver moderating Austin see be of X% is fall with outlook, in middle and come completions portfolio new

markets fair Both been years, remarkably share supply past seen of of few the in but strong. their these have demand has

layoffs any on these demand. an Given in slowing eye signs technology for future keep we sector, will the of both markets of recent announcements regarding

a Metro and Our San Empire, Washington, with stable earned Atlanta outlook. of markets, B+ next three Inland DC rating a Diego,

units, range. of XX,XXX, growth We X.X% revenue XX,XXX and to XX,XXX expect in and X% completions respectively, the

overall our in markets other face mode environment Empire Inland California this supply should the in of than puts wait and for pressure some Diego regulatory but see less now. a year, San Southern us

XXXX. Washington, throughout at DC more Operations a pace of to seem in should and Metro steady, Atlanta stable continue and be the same

projections LA, and and County revenue this growth Orange Houston last year. B are with markets X% grades two X% of of to respectively, and B-,

Our County. a outlook markets are outlook outlook LA, for Orange bit two see different improving as these an Houston in in a versus stable we

profits see with economic new and bit Houston with units, respectively, energy XX,XXX resilient should may manageable companies be markets deliveries performing well. Both XX,XXX more conditions in a and but making

-- LA and higher begin non-payment a delinquencies and will had issues when addictions our other around to regulatory restrictions rents has County improve. bad clearly compared to we remain actually markets, debt of cautious on was and and bit clearly

for fourth growth for our in growth performers and X.X% Tampa, markets were top quarter operating our quarter Florida three markets our Same-property XXXX trends. XX% XXXX Orlando. of XX.X% had Now results the the year Nine of details for a and our full January revenue few was Southeast and quarter exceeding fourth of revenue XXXX. Florida

signed quarter Rental leases X% renewals X.X% had up the for a new fourth for up X.X%. rates and rate of blended

indicate to date. increase January Our our blended March of to results renewal and a with sent with offers February preliminary X%. average out growth leases trends were normal X.X% seasonal of a an signed return on more

January in January averaged last XXXX Occupancy to fourth quarter of XX.X%, averaged quarter during XX.X% XXXX. of fourth and compared quarter XXXX, has occupancy XXXX. to XX.X% compared XX.X% XX.X% in the the

turnover to slightly XXXX the XX% XX%, down of for XX% move-outs homes the purchase full Annual from for XXXX. at XXXX, to versus XX.X% net of XXXX was the XX.X% up for for were year year and full quarter and compared

over now turn Financial call will the to Alex Chief Officer. Jessett, I Camden’s

Thanks, Keith.

a on on our financial guidance, results our estate move brief and real update I activity. Before recent to

over quarter completed of almost which leased, expectations. Atlantic, well community is in per XX Florida, Camden we XXXX, XXX now Plantation, fourth averaging a the of During on XX% unit, ahead million construction $XXX leases month,

results of share, represent reported financial the we of to in our XXXX operations fourth in of per $XXX.X funds FFO for million $X.XX Turning a XX% quarterly quarter with per results, guidance. increase from XXXX. fourth prior of night quarter from midpoint These the the last or share line

freeze. is fourth expense quarter recent winter associated approximately $X.XX additional with within of share results the our insurance XXXX Included per

prior insurance Camden these faster lower midpoint leasing Texas. $X.XX resulting velocity health per Excluding expected would combined tax claims lower with Atlantic, the exceeded of guidance charges, our from results at non-recurring and insurance employee than property range our the have in share rates by

we X.X%, the freeze the XX.X%. from and expense expense of record growth revenue NOI winter growth delivered XXXX, same-store additional of of which growth XX.X%, insurance record For included

key XX can package fourth for our outlook. on supplemental quarter to the of You assumptions page refer our driving XXXX financial details

range per to with per to results. a This our performance result be $X.XX, We XXXX share XXXX per increase $X.XX portfolio. of primarily approximate $X, from an share from $X.XX increase expect to representing of the is midpoint of share our FFO the our $X.XX same-store to related anticipated increase FFO in in a

X.X%. Each expecting we in share of of FFO. At operating expense income X% driven same-store approximately increase growth NOI and X%, are of midpoint, revenue per net $X.XX by in growth the is X.X% growth same-store

additional from our from An additional and approximate increase of on XXXX. completed portfolio. X, X% ownership approximate to in increase NOI in three share related we acquisition XXXX the April This includes per an NOI $X.XX the in FFO Fund the months

during the retail communities, either and XXXX from approximate non-same-store from our lease-up our FFO increase per incremental development And development, in growth an XXXX. resulting related $X.XX in contribution and/or to share communities income primarily from nine operating in the

cumulative $X.XX retire the our partially XXXX. matured per share unsecured anticipated is This is credit facility of by to expense, bond in XX, increase a our which $X.XX offset per per of $X.XX increase that on December share from in FFO unsecured X.X% interest million, $XXX share utilization

average additional impact are approximately Fund our of activities. transaction, of primarily comes assumed interest The XXXX are interest we variable facility million as development to fund $XXX credit of share part XXXX under year inclusive of debt. of interest credit higher secured per of $X.XX line and of We the rate the anticipating on the impact the debt on full share borrowings $X.XX in our an from remaining rates the $XXX additional rate per from anticipated assumed million X.X% of expense in

XXXX repay below X.X% An FFO Our share the matures $XXX unsecured decrease net use in in will our related bond, Fund of June forecast also Assets. acquisition to $X.XX market credit our amortization our XXXX. which facility approximate leases to our related per assumes of to we million, of

market which prior market at amortization to over the below place we leases required acquisition. amortize of identify the acquisition differential non-cash the in in average XXXX, of lease from seven Therefore, assumed time remaining approximately price we above was below FFO and leases As the term, the net $X.XX of months. recognized or discussed calls, the on accounting purchase earnings either in us

expenses asset pressure and inflation, primarily per in taxes per equity joint of and cash $X.XX continued in income $X.XX primarily XXX% additional higher in own an in approximate related of and of approximate and an An from to FFO in by franchise of the resulting decrease fees management expected share full due outstanding the year sale per an investment decrease approximate $X.XX FFO margin management higher administrative the from now and and related our fee per general approximate per and equity amortization; in FFO activity; to approximate combination decrease Fund $X.XX share XXXX; primarily the depreciation the in lower Assets; property corporate XXXX as ventures we the to our decrease and Chirp wage other XXXX. and XXXX, and shares FFO and and $X.XX share higher income, caused management for decrease share balances share disposition and in resulting completed from earn-out received XXXX we interest from an

of an Our X.X% XXXX based midpoint XXXX upon at and growth loss the is X.X% a lease. X.X% current revenue same-store earning to end approximate of

XXXX third assuming leasing lease are due a of in We to the of we expirations loss timing capture and strategies. this lease

in growth XXXX of results loss XX, budgeted annual December in We market market market also from in a this combined XXXX. our and XXXX increase, embedded expect rates rents. rental a net X% lease rate increase December to Recognizing increase rental capture to half X.X% XX, with

are of which levels assistance a in accounting after decline in of in results occupancy, rental in increased As an result anticipated XXX-basis-point supply, economic physical for anticipating XXXX. decline XX-basis-point proceeds occupancy we lower

remaining rental When and growth increase combining approximately items our occupancy The are our encompasses of primarily our in income in X.X%. to of net budgeting these we XX% XXXX to at is X.X%. our revenues fees income total XXX-basis-point rents correlated grow comprised rebilling economic of decline with utility closely XX% market property occupancy, are revenues. Rental rental expected of and other X.X%

XX% in valuation property of average X.X% and in operating larger taxes same-store driven driven to expenses X.X% Property Georgia approximately approximately of projected primarily XXXX increase by primarily increases anticipated total expense Our represent XXXX, in are Colorado. by midpoint our growth insurance. is above and Florida, taxes increases and

operating and XX.X% to operating total to Insurance anticipated represents face our losses. of remaining the insurance combined The global wage our providers grow continue anticipated of staff increase our by anticipated are of offset expenses at large restructuring. approximately is are on-site XXXX pressures marketing expenses in inflation positive X% expenses XX% to supply and partially with we by increased X% as as increases face impact as

total We in are at salaries X% expecting less and to benefits increase than XXXX.

net offset of $XXX of with guidance At we million assume the dilution. $XXX no accretion of range, dispositions our million by midpoint or acquisitions

$XXX also the Page XX spread for million details $XXX annual year for with of plan package spend. other including of million assumptions $XXX our of supplemental to development throughout XXXX, starts million the development approximately

for within to $X.XX share which of fourth approximate $X.XX. XXXX in the in per XXXX, and is the XXXX, to approximate which amortization increase per market non-same-store timing be various other related XXXX; attributable $X.XX health typical corporate resulting our $XXX in to $X.XX $X.XX tax and unsecured facility sequential our share FFO accruals; of the of per approximate NOI approximate leases an per not occupancy; sequential lower below of reset share midpoint primarily an range the our January including corporate quarter unsecured We fourth of rental expect credit annual related reoccur sequential $X.X development represents to quarter same-store to of property anticipated $X.XX primarily the lower share and XXXX in approximate of decrease by our timing approximate in entirely an an in the in $X.X interest and expected December declines resulting FFO in primarily offset share first salary $X.XX in Xst approximate net maturity activity. salary each increases per $X.XX primarily the The levels our quarter decline acquisition of increase result to related proceeds increase the from per from a the to an fourth per decrease communities, stabilized our expenses revenue the first share in employee the the an Assets; Fund income quarter and third-party of same-store decrease XXXX bond; an timing of seasonal utilization decrease of from quarter year of of $X.XX sequential the levels are of annual fee assistance resulting claims insurance our expense, expense accrual increases, of increases trends, from repay by per our of driven on share on-site share and million construction to the of other XX, X.X%, from FFO, of

remains the sheet under years next with the balance development times, spend pipeline. to to strong, Our net over EBITDA existing debt for our $XXX and end, fourth X.X at left at quarter quarter had three million we

time, this we open to questions. At call will the up

Steve Please Thank ISI. question you. Evercore first ahead. with Our [Operator go from comes Instructions] Sakwa

what you sort or if you you new your are little is looks you color new as in that are morning. Good negative do just mandate, about, up all of spreads then looking say, sending when Ric are number kind people Keith, of the the kind but the know on you discounts at expect for next, blended a Could six or X% more renewal. don’t versus of this and turn Thanks. provide of, I guess, bit and and also at Yeah. offer having to you kind just that to months a about X% signing Alex, concessions think to the I at months? nine talked that low,

in sent are -- underwritten we our leases basis sign the way. Yeah. being XX just and of really XX and that kind basis to pro expected we where But don’t what at. properties points our the lease-up really within sort don’t written renewals sign -- out of typically on renewals into points are within We sent that them the new forma The concessions do concessions. is Steve, its ever portfolio. time of we it’s on do On out, and only concessions use

whole lot. not is some there a give, So but it’s

increase actual expect to X% peak XXXX. our the have the leasing that season. we fourth Regarding of end return to the likely over get do slightly to and until up, Seasonally at will like certainly we the looks at seasonality did new continue do in we course it closer that of a and quarter leases,

of did portfolio But, what strong year over would our for overall, without plus juxtaposition XXXX for pointed looking which another minus really in kind growth, and be XX%, a out, X.X% we that we are Ric to year of standalone or as strong historically. in rent

So we looking forward are to that.

question, your Steve. second To

Thanks. Great.

leases expect to over to months. To your second six question, at all new nine we negative our go the months don’t next

-- throughout the and happens, feel if Now or so year, what -- down way and have what have vacancy we our our that a occupancy recession combine up. we very we mile numbers built whether our the we upon a took was unfolds depending soft would either our why landing -- numbers reasonable and and we that’s that guidance we

negative going after as if start period. then and them But as of negative, far negative leases go in -- have go tended of to timing sort look you positive January seasonality, a that. didn’t during new we December, the year, November, sort This historical of generally, that they at in rise

clearly growth, on second but negative. derivative we never went Now had we significant negative a

assuming That’s reasonable new you they lease then year if we more in market growth. So just December. more have negative a go seasonality, have recession normal next and or may

guys. Thanks, Great.

Please Joseph question comes next ahead. Our Citi. from with Nick go

markets the of think, to underperform underperformed that walking few the Thanks. three LA if are County, the for have different the a market But outlooks. Orange you we kind least ones, of I at through bit and same drill all in expecting into years. past appreciate I Houston, you

the end need and would going So the outlook the those structurally towards kind more top to maybe from you them what grade? markets forward get change of of that do see

have challenge with… Well, you the

Well…

or over almost popular … -- California migration, has immigration, either if legal migration next X.X million is projected look Southern immigration domestic -- California you $X.X people the years that, million from projected three Southern leaving. at

the other hand, if -- new the XXX,XXX around Houston, Texas, projections migrations. including look on at And you have we show of about

on is markets. into moving out of our So have you people this just drag the things and those that’s one markets of big moving

just and Houston XX. period help are in strength laid off back is happening people The jobs give continued you continued that could about What have the numbers oil to transition oil and XX,XXX added gas some energy about and gas only in market. folks fundamentally pandemic the here and

look is hire more as haven’t whole what’s money efficient, happened right they they you efficient. and people if more lot become they they are really So printing at a their now, to but become though stepped earnings, even up

I challenge almost think you and ultimately, upside, have when measures. you that’s points. California occupancy occupancy because between economic physical there gap X,XXX Southern the has COVID get is mean, a huge basis I biggest some past the been

think in hopefully when that end and And all rent, it’s to the restrictions. then and or by your you of terms I of of -- May the extended of California, ultimately, clears it which driven so, part don’t that that have March fact in pay to end they

But, of and estate hopefully, drive situation about have like free can’t we they business you world. once be good will ends, you smile and a and your our back their run positive pretty BMWs live and kind will get able people feel that Today, where Teslas to business. the real a as

Thanks. then today, on you underwriting if or kind opening of a what was ask IRR on you comfortable I the to transaction some And unlevered that. would appreciate guess, rate the basis, wide there? cap and seller market, I your would and having patients. willing transact the and from do by be mentioned an it Where spread you comments bid just

value whether in because revenue that. lot five The -- cap managed from using is, the the what management is they side to are of a can poorly rate of Yeah. in create wrong we hard a a lot way, be question properties peg, upside and the kind pretty long-headed we of will think of property times

you be up. drive able the will properties stressed, then buying rate cap be So cap pound, we the the by not and that to rate are may find we

of at have In least terms our cost hurdles unlevered increased given IRR we rise. unlevered by capital IRRs, XXX basis our so of points,

levered $X.XX range on So IRR acquisitions at we for the would in basis. of looking plus kind be

you Thank much. very

comes go from ahead. Capital Please Wurschmidt Our Austin KeyBanc with Markets. question next

impact I additional morning, everybody. your guidance? you just to if negative a I believe in and for net are fourth $X.X you Alex, referenced forward wondering from lower assuming rental going for bad and this Good you FFO was impact quarter assistance what Hey. expect debt year any

Absolutely. Yeah.

debt in a XXXX we rental assistance, should about So negligible same-store on $XX.X so assuming and we bad around rental When XXXX, net in basis, got for be some X.X%. amounts. think really are for right us million of assistance, XXXX, you but about

the basis, in So sort best But sort it if on is XXXX. assistance of not net positive terms that, there’s of we about think then we back we a you to benefits showing, XXXX. way some in bad in of are XXXX got of much in XXXX, change me, to out of showing a the from debt rental then that excuse are improvement XXXX

about debt bad is our X.X%. ultimately, And

helpful. That’s Okay.

And basis today, go to that’s given then, down potential year that going recession, have the number outlook very X.X% and ultimately, for we and challenge we back the elevated a XXXX. XX the it’s points throughout start will hoping in are

come growth rent. positive that actually starting from So people some there’s their can pay to

Got there potential year? Understood. move a to I outlook. really it the some upside stacking a given market as from like Yeah. lower at versus surprise of And your difficult am for then of didn’t sort you and I growth revenue is momentum through comps, maybe of your guess the see just remaining Houston holding it it. it other expectations year but to what’s back as other of And up markets, started is markets have last Houston curious had some the seemed trend and end the better bucking

Yeah.

overall -- seen size we a be positive Houston normal in would have the of conditions the used which So forecast, the given in we year our XX,XXX as have in the that to market. completions Houston, Houston market

job Ron employment those flat enough mean And flat of outlook we everything where number I agree and actually growth -- or he’s is has don’t that growth Houston. job the he over zero necessarily it’s numbers, very possible with Witten’s after he Interestingly the he’s -- got Houston understated Ron it’s the year. total it things think I and has that and on one basically in

partnership or Greater be and out XX,XXX. after XX,XXX XX,XXX new Houston Houston indicated in update Ron’s that The jobs a with zero range high could numbers came quite XXXX. as That’s between latest as

he more in we So a we dynamic modeling look at forecast, over situation his on Houston. I bit rental to reflect think in carries growth probably tweaked and our Houston rental that job when forecast little Ron’s into

I business not think continues there the country the situation is chance company can’t a to trend the now, So job in quarter it basically that are every energy imagine continues, If is a in. robust energy record if that right we growth is as just fourth I almost earnings. reported which in going see more

Yeah.

supply that’s the a right shut given other the now government current think when thing about off. the think happening on environment. federal We the, Houston though financial lots I getting spending, that could the is help is know lot you even we have of coming supply

of a to months have port via expansion federal in -- XX of months Houston to big tremendous here, massive over money we and Act Reduction the be XX next of and And the Bill hydrogen, just going The from should and that that lot carbon of it projects amounts Houston of are Infrastructure amount government spending from benefit create big those. capture, coming that’s a employment time of lot the the with Inflation both a of

the detail. for Thanks all That’s helpful.

Our Please comes Goldsmith ahead. from go Michael next question with UBS.

lot Thanks a my taking Good question. morning. for

Sure.

prior of in Maybe did Is conversion asked down or another any X%. months? top of funnel and in that in to Our upturn demand indication basis way, demand December trend? points and January an that increased indicative and growth January to lease turnover there was blended how compared is XXX has bottomed

November points the normally both far We we that was So by points in from the question points basis at of was XX to XX December, XX it or basis points saw that basis demand, rates and I history. between or outsized a to rental was year somewhere see we metrics. compared wide and decline this November normal -- around of the where December basis occupancy on XX decline kind it and that see think of

people number in doubt the have we a of -- was So them it higher -- apartments apart felt that comment than Christmas about have a there’s there’s and and of that. internally of would normally no between little I of the something holidays our toward kind bit home. lot sort stayed to we changed what mean a seeking people total amount runners December at fair went like home made that lease clearly seeking expected. There’s November of

but look have So our trends in gotten January. better

the last from it and backfill is for the maintain occupancy a decrease bit. we levels year, for and where quite last at XX.X% strong it over of is us. standards We and traffic year historically little sufficient we occupancy again, modeled to historical for did overall really XXXX, time have XXXX still was to but by occupancy which, Our our increase in year, elevated

was will two. really because right One off that it the that are kind hot of these broad hit now last data week you the really I and give things just -- press or to in just way, a over of the am points going I

like was about and in away a also, are stimulus the December. Keith people definitely numbers quarter. think seasonal when amazing. during right? out, it at fourth a it’s as went you situation felt But the demand, pretty said, look these he we sort And pointed of As -- more And post-pandemic this, just

massive moved when have out. units and had multifamily stimulus, XXX,XXX absorbed of new we XXXX, In the net lots in in they money the XXXX industry and that’s people

XX,XXX about and at XXXX, or XXX,XXX If people to In that average made XX,XXX grew a average, the year are XXX,XXX. XXXX XXXX, XXXX a you between that between on average the number look and year. there

to XX for the were those thing you on average over XX,XXX said XXX,XXX XXX,XXX cohort, the fewer, XXX,XXX X.XX%. people can went people XXX,XXX to people. went same from then And went from be from but so to And

pay pandemic, -- have your what lost stimulus the people whole job you a think happened through about you insurance. because And moved unemployment you money your had XXXX, during lost you XX% your up of of in fraction of that was pay your if XXXX, job and maybe even got in if -- this unemployment market if because terms of the

pay or is that The worked lost and way your was stimulus the way you have tweaked job. of XXX% during the you pandemic XXX% got unemployment when your

the out moved apartment and have It saving. able afford that all you to to into world have of up apartments. So they lot people wouldn’t this otherwise moved been an a massive

of So at numbers you -- I XXX,XXX quarter a would the absorption XXXX, we If that right? of a had is in bad be, units, of XXXX, we couple fourth had had absorption XX,XXX in are this really in other fascinating was negative, we of units. net really a look negative national which really anemic multifamily A world, the you absorption. think time had

XXX,XXX fourth the In loss obviously, the a than better apartment. quarter of which is of of had XXXX, XXXX, net we quarter fourth lot

find least to history. the XXX So relative to the number I Keith XXX big XXX. was The I a in couldn’t was business big. time, have been so at that and this where

they money stayed move And and leases you is that have next back of why year. back obviously, spent for income and instead and their about thinking Christmas what start happened, and home coming when that’s their up that people up renewing wise those moved

to normal going a be XX%, can’t of growth more But think recession year, it’s a why market. to equation. good year side going XX% with real have I back when growth double-digit NOI that’s ex you market next continue the is revenue bad some the to

apartments. getting everybody can money of high out the sugar just are they off and has We whatever do want including and go lease

for starts. in That’s a commentary. And a guidance, development very helpful your range there’s then wide

that you versus conditions of bottom for the end Thanks. end the range? macro maybe drive the to the look what maybe range would of So top would you

points. a shut change the a has have sort look biggest been market on, product from perspective couple the of key banks going One you in are of that, really down if at is lending. There what’s construction

have And to uncertainty be increases able with rents the that the not now with going past. rates, construction fast enough cost offset in to interest had the up are we

So in you show the have a that lot XX% XX% builders of range. merchant models construction dropping to somewhere

by X.X they at and folks those the XX% almost like of today, are so starts starts around you this a year, cut. going at million the that we to show look XXX,XXX end If look

So great time supply you that it at for have land a months continues, sense you build where XX a for we and the the given on XXXX us is to then if months that low takes way XXXX very makes could about the to to we property, legacy and the be outlook deliver to have think build world in reduced. supply XX trend

other price year, The thing see to almost We see terms was the pressure construction moderate. folks three will years, year, -- of most cost. -- up have to XX% we last that are is come starting dramatically costs this then you because XX% there starts last in probably starting to gone are do over are that in down believe

flat and seeing we Now actually are go it then down.

that’s to can be be you XXXX the part XXXX, interesting could sort of come hitting significant then be down our we development you range. to months and next we will go that should if starts more. good recession, there costs going lean supply year even an those really down, if where a is be about, the and are do opportunity if would down some of over market cost get and six see where that we and costs into then the we is down have fundamentally reductions our and going believe end you in top this So and If pretty will think the

you developments merchant that be So than Camden position companies to XXXX on and expect higher in today the and buck XXXX. allow to could and returns well-capitalized can’t builders develop like trend able when would

about think we how that’s it. So

year. Thank much. Good you very luck this

you. Thank

comes question St. Haendel from Our next

Mizuho. Juste Please with go ahead.

how but you also was same-store morning blocks Good to X%, have looking and revenue X% which your clarify you market assumption out X.X%, guide. current growth Can the considering math I am question that the of the supplemental for and us works? earning, I rent think back X%. at going Hey. around building midpoint there. first in the of your is the My

mid-X%s. into assuming it, of the, us that So half gets call

to factors are swing what sensor Thanks. the So our revenue the and clarifying end? can lower upper buildup and you a to of kind spend moment to get the to

Absolutely. Yeah.

capture the So, rent about then lease and December XX the and we first XX from to is market loss right, about earn-in XXXX the we are of can X% call to growth earn-in December of have of you of we we plus will X%. sort think of that all, XXXX it

that. half So, obviously, get you only of can

you X%, rent. So add and to and gets the X.X% X.X% to you call net the that that’s market what we

is is sort dilutive Then impact that driver of the economic to occupancy. the

points. that So about basis we XXX making down are the occupancy assumption comes

a income basis that and you you So XXX rental growth. and off back you gets to points X.X% take the X.X% the

that property income about remember XX% total is Now rental only our of revenues.

XX% then they income if you of closely XX%, So it those X.X% about type take to rebilling, fees, admin revenues fees, application and multiply other rental water about trash X.X% rental that and you so by other from of and income growth are our the you think to items comes occupancy. correlated get rebilling, and

-- they can the And them actually we also so X.X%. that amount you that are are some to statutorily expecting about grow of to and at charge mandated are XX%

exactly are and get to the X.X if out, two you X.X%. multiply you those So you X.X add X.X, you you get

Got it. it. That’s Got helpful.

rates, the how timing wait outlined million Are and light then from? to should for opportunity you are about guess broadly I or on builders you on for outlined? are Second in -- sale I more any that sensing getting willing or are or thinking markets from adding rates acquisitions calling you there better curious your better expecting am getting we Thanks. guide. of and question an calls $XXX the is cap to be transaction merchant you the cap in outlining you dispositions many you that calls markets of more

answer we the them of the it we got towards then and the end we have Ric the in part timing let I the have is So and offsetting what of have second one another. it. answer of will year Keith got and But timing our model

no from net or acquisitions dilution there’s in our So dispositions XXXX accretion guidance. or

We with the X,XXX to it interesting, and are to include hang pay registered the people NMHC just got trying thousand around trying NMHC meetings market. don’t that there that people they was from of hoop, record just couple fee, doesn’t to back and the there have were want understand for

camps. had sort of you -- three we sort of And was interesting it because

-- where others and camp the capital have kind the see and waiting like people to of other we capital kind we going are us what’s portfolio happen. You to -- managers all like of with were and

are Then lower on betting that that than themselves thought some that are that properties are you are actually going had are that number going start there a year. they they who to to builders projected. they are this as kidding start are merchant still many as realistic, And

year sales $XX you I all very group And about are look brokerage heard XXXX the of the January then to back you national heard $X of about of they When work. did numbers, the one brokers we getting and have some done who million. billion of that said at January this excited have they in numbers

get there so market the and we as to is bid try reasonable this you have to spread develops, I And certain is ask think look market because to definitely extent -- will a a the rates frozen capital, return. of

you where make will I the return, ultimately, knowing a really Like ship, that, that, be things don’t by return in buy are pound but might reasonable terms might I you not think replace and be of you we today. able you substantially what might buying said rate maybe it it lease-ups of have below at initially could to for that great earlier, like and buy

that I a week, market and believe XX% think basis clarity. there the like people So they that, this meeting I most it. do when until just points, think see continue think I the attitude definitely is like that Fed’s there’s wait and you mean, -- will probably more about

rate. do a XXX,XXX right, XX XX-year jobs sudden all now then back we a rates of unemployment Interest to about, have and [inaudible],you to years and a what’s and talking going came XXX on Fed back now, to day down the low are well,

anyway. hoping just be first. it’s powder and get that that there’s gets it’s plenty conviction, the question I market think will of I you blink hard the start there sellers conviction much blink to so think am dry so out first to uncertainty And seeing when then and will have the is who that I there’s going and to

half with handful agree comments. that. a at your I minority a speak the No. thought I too. too that, people agree who better well, of was in Yeah. and agree with housing I did [inaudible] I I maybe envision, to the outcome? mean, spring back rates a year you scenario selling season that how I potentially Is lower result the interest you in can that think of could and in about cap do rates. lower that

business Well, hand, I And right? mountain capital, a on and the guess, people there’s is a great understand of that. multifamily one

thread cap forward needle I have like rates to could you in can X.X% economy be -- might that guess the range, they think, I sort affirm doesn’t and down the of rates and X% some. dramatically are look argue either or -- Fed if the so to going the And rates if you crash come

I on think to that properties the people today. when you look their leverage have at put negative that

negative got are If to you you X.XX% -- relative to at figure buy there look dealt negative XXX about are Freddie with. got you at that XXX-basis-point about do how and going spreads and you to a X%, cap you XX-year XXX-basis-point get rate, leverage the -- you and Fannie to you if out are X% spread

IRR, some future got pretty bet unlevered on falling ever cap rates to the work. want X.X to you strong to to fix make in those you if a numbers or growth And X.X

that scenario. So on bet there scenario, is sure, now -- a for right wouldn’t but it’s I

the for your and Thanks time thoughts.

comes Our Goldfarb Sandler. Please Alexander question from ahead. go Piper with next

there. down morning Good Hey.

morning. Good

questions So -- good questions. two morning. Two

But have return something are with not get tougher, the landlords conditions your asked in on LA that California -- I has of it’s mentioned whether changed, and are like in I lifestyle, year for market the the cetera. changed eventually where we now good past seems of California, what, lot et or recently qualities the have long-term you you that has do that’s view and -- over good a leaving people thought to know infections just year, it California strategically not you Is light about did, view rent of would mean, there whatever. market market about off, the there like, further we believe that you returning, what tougher question years still in assess? uncertainty First especially or that you every mean, I your the a that Southern cause you to, sorry, that XXX,XXX it

Yeah.

the So, last a and have cetera. and -- years et have the eviction the moratorium, as been distraction Alex, Those -- all with trials and come the those restrictions bigger that have two to -- we me from tribulations been picture.

decades a a challenge has or the has not three the just operate years to in been decades anyway. challenge had and two for last half California but for and two last

Everything And so different there’s initiatives, a around it’s that mind fact be a with XX of terms regulatory is going -- little have lived a we et going is new of moving bit you for have to stickier regime. your that to that’s to kind get be the trickier. Everything cetera. forward years. on in something But

to how do know we it. And

We it. at are good

moratorium -- team normal I at seasoned end. the a the get of and to the the have exception believe is of at we regulatory very to for ability knows a do sure. morass an the California been real that way believe -- that team in normal control coming to that and an two least eviction But through The estate their last years end our as have to navigate We how California. in

two to one. the we going public that this the LA then by said, for this time I last are and But truly months a I the -- do do that last kidding, they we said, and entire this this I And came that going know virtually is no God, are swear last the extension council they really to is extend it. announcement supported believe to with very County

whether months you I commitments goes the that that, is a it nature have years been. whether and craziness -- long-term it operated of business the isn’t on our can picture and it beyond assets make. just given wound can what two I think about or think almost years, another over and out there for of So big two XX you don’t for XX kind -- the emotionally get having like last ours, we of up in the don’t

terms because in it difficult difficult Xx to as it’s you that, properties, properties just it’s landlord, is story California look is as a of California. to good if think build really a actually in I beyond being run

it’s like that is you kind what with So it is going of deal supply our other have to be not in to new -- the we markets. challenge

normal -- we end little to things reach don’t get So some I where from optimistic and out am continued these more migration of sanity I California a hemorrhage in prevail tipping than places and most up California on a track. will has will with the more a guess point people that maybe of

to that return a demand. you If get in happen, great were would

of years of replacement in the You any starts. haven’t built new had amount last product or terms meaningful new in four

half it years operating environment think really up of good could a past end crisis. get we being this I two and once

Okay.

is of of apartments you are apartments always your think the the are the will? already some and sort do And question already FTC up hard really make sort change? the is if White all to Ric, you obviously to second, the Second what does regulatory is on you so policy, be view, going have broader if there know obviously, are all speaker local them effect guys that House your of going is go government less we In CFPB regulated Fannie, tough powers put and out. fear that use really that ante, overreach attractive borrowers debt this to that Freddie or view to sort regulations this it’s regulatory to after

Yeah.

and it’s you the to at don’t Fannie, help there. and -- they I trying those affect income are really much, it’s on lower to question guidelines because think that going first look Freddie when So it with targeting

when I that mean the multifamily housing the Camden. market public realize that largest entities about have who attacks or right, not one like the that are federal government companies don’t agencies, so people or about business of evict is rate the things think you think getting, to people you and

In them normal a of try create time, payment a XX,XXX as give plans. people them to evict we by can. to people as time, we normal way, and year. work out sense where work XXX to on residents we long to, the keep a Just We in be a apartments, may with value for our we

disruptive a their or people And persons is of somebody lot has defaults, to those not but monetary are bit neighbors. evictions the like dog to a

under I long-term that feel to good going be So we pretty siege. not about are

rents energy scream like gallon, they there’s the thing. they gasoline they the a god, go a go for screen prices and doing companies when politician, really Clearly, XX%, for right? my up when oh rent $X.XX energy and there. up almost people supply demand But and -- driver think the is for, control are it’s It’s bad villains,

have do be tanks problem well, analysis to constituents. folks. will and think both will there’s think will that ultimately, a that vigilant, to and put on of do supply, the we we expedient control just rent politically help right But lots this, which oftentimes economic we rent stifle all know creates on left all for that ultimately the it think is I cap say, a because control, and because we -- though,

tried where are think we on -- I are We lot example, for the in a look we is Camden us the for at markets have in the to news markets a lot when you a regulatory and targets have Good of rent in. like that of couple of control. don’t put Florida, even major

are they mean massive and state push legally houses. I just the from both getting from backs

at think do need some making us massive to of having risk vigilant, be So are government stuff. do don’t but we we I

Thank you.

question from Luthra Chandni comes go Our ahead. next Goldman Sachs. Please with

my for question. Thank taking you Hi.

Sure.

especially deck? mentioned, and the the also the Houston as versus especially the kind TRS transaction. increased on of in the exposure of net now that, now you like time with and is moving as one B- would from about deal you DC first to so How expense it, The markets dynamic pieces, the you at acquisition, ratings benefit the accretion think this your different interest about hindsight, think your qualitatively you of are around that when has consider higher whole B-ish, sort of

mostly equity, the executed Well, a acquisition. financed equity we with a equity, pay and it. large of At is million transaction time we $XXX to we had acquisition the for it great I cash still think,

when so in us, was acquisition properties transition on ultimately, risk, portfolio, everything we you those primarily accretion got that was didn’t so, really knew it’s was going in from since there on gee, We properties or for low And oh, it XXXX. an dilution built think you them risk operated those clearly a very I because no, them. accretive that was know them, we with either with risk because was so XXXX bought going or no it and and what perspective, accretive about

showed some at in went you When result our Alex the that now. due, broader bonds the a of FFO, was a some per or not as drag in interest finance, release, were five look rates having are that we did at coming se, on walk change to they press going it were have through three, that change up at we our transaction

was very So I for us. think good transaction a it

have had really be because with to properties assets we was that really so would would we to the where very Ultimately, acquire kind to timeframe to transaction attractive high portfolio, able to unwind little us. a quality XXXX and had have of we sell risk

willing in or increased to quality DC be to in to exposure we transaction other grow those and Houston To out ultimately, the the able lower either exposures. actually or But, to dispositions term, those were issue want grow longer acquire bit to sort and of to Fund properties. we markets that to be a are our -- Houston going is lower delay of our acquisitions way, and to exposure able we our

can of great trying it’s next and upside we years wouldn’t we really, diverse we of flow could be why and because good geographically right about California sort once exit the And have that’s more that volatility get the it’s over pandemic cash less also a out so issues. become reasons of to the of one our now, ballast all couple in

more around we country move the diverse on assets will to and focus around. yeah, So, continue being

XXXX dramatically around sold that and portfolio do XXXX roughly from of properties changed about think we footprint the XXXX, you billion we will $X to our pretty -- geographic moved and during If that. through over continue time and

this and to get sellers sales when will So, some and those we to of environment together, portfolio. be our move to hopefully, this closer buyers continue able to acquisitions execute diversify in in

a California in we down perhaps develop? be for this paying that about about said, the you talked down that. we tenants is much occupancy line, how of currently, you Thank from it couple helpful. guys as would in And guys who emanating you you dip think back then a mix you think pricing over you of as Very how mix mixed the perhaps higher real looking follow-up, to this about the of prioritizing that not put estate XXXX months in are And as line, as supply occupancy occupancy? your versus and thinking might would about, get from how

Yeah.

for would case. XX.X% any plus or for minus which average So we are XXXX, modeling is in where compared occupancy long-term portfolio to that’s our about operate we like to the

higher of have We certainly for that couple last the years. been than

unusual demand that that to, kind future. likely drivers near time driven happen at and not of the described, see in were that made any probably that the demand reason don’t for Ric as sort of very But hopefully of

-- think your the to-upper I shop range. levers and management we we lever to to occupancy -- the the So are mid- will mid-XX% maintain we that pretty in is adjust you in XX% pricing pull use strict -- think revenue I can try are to primary the

market is those take think inputs both We at the know We which think down the each -- So falls. on -- by where the the on in in new to come conditions will it’s model as be continue our terms the individual of from accounted ultimately, to ground that we a the to actually But recommendations pricing viewed we the properly YieldStar in headwind. we for model, supply, to have the looking going will the it forecast. YieldStar.

affect other So, likely a getting in itself since to struggling -- up to they happen. in in issue through of doesn’t is up given Gap] even have have markets, they doesn’t that California real legal the California process legal with [Audio going eviction. those still That to moratorium, go back, and the And on a several through process are of of estate long catch unfortunately, our an to where you still eviction. the solve

to do So we that. are prepared

We are days between, lag to expect have the process, going some we to know some can depending to jurisdiction. pursue the take to but okay, be be you first cases, in on days moratorium, begin we XX now it’s the just lifted evictions, line that can in which XX

March I even our So will it of XX, in after think be to get terms little be a drag a of real bit -- back. estate will it time

is up is the strikers out just we them, non for something last and before there’s of the for side choose the sight that’s that because know that we years. had may is they voluntarily once that gig flip The they to rent think haven’t evict move to -- for the contemplate end that that the in is, two they

Thank you for all that detail.

SMBC. Our next ahead. from with comes Rich Please Anderson go question

there. with for hanging Thanks Hey. us. Good morning our

Hi, Rich.

clearing slow X.X% country, of X%? these have or how market all kind number rental market comes market of call do of we you market at shifts know growth gets clearing are to year that it’s growth, whatever what could that revenue the last higher chance that But or to playing all rate with it, recession obviously, to seeing something like behavioral at X%. you that’s uncertainty to are deceleration. you soft landlords this if this down -- residents it kind sort or assuming growth causing with the and much of year, clear are than driving a is want are expecting for around you you and the it, you am ahead because be where some is there of lies no curious to Is So others yourself sort landing that the where I at rent we versus are

very our have positive right? occupancy. mean we a upside be job think could in today I the guidance That’s I the obviously. why clearly you if Sure. was range, number have eye-popping, what a and --

keep thread X%. then, think, have consumer the the you have the be job going and -- going Fed that soft -- a whether you if And right, landing, two our landing One parts guidance. the and a rate, it’s of the I needle growth and you keep can upside would yeah, in if

numbers. beat other The probably would be our occupancy we

numbers, the be where And that where earn-in, two. are given most then -- about and so we are you think those there is the is the described more and number occupancy what when that’s you the those the conservative beat too putting places the could an is think -- you market when about are really out occupancies two X%, there. pundits the And be earning just could -- -- one I outcome the could that probably that just I

guess is theme driving right the consistent So seeing any are behavioral is they residents you that you really is, proactive what’s from are question said for now? shifts the behavioral landing I more where focused at or and with a is on landing you not that now, the they your there from macro MAA are are shifts where you this seeing are guys? residents that’s that you

behavior. I that absorption of units based in America, quarter Those fourth you XXX,XXX would where earlier, staying say I home negative consumer had on people are Christmas. for the that’s in the numbers said a

am to and they a am going and going kinds coming out out decided money, to of or Those to dad spend are got that do, all savings to because money and and I is and big then try are cash people double now up going, economy and go the paid, run forced live again. of, what cash maybe apartment uncertain, who they stimulus had with go save to and of mom I back

And clear in XX,XXX positive the XXXX absorption XXX,XXX all in happened from, that, when was half I we it like and I net and and has the you of behavior went the consumer is think that in think first about that year. said, XX,XXX was it XXXX

and having quarter half fourth third first quarter in flat, in kind quarter then you the some positive had the you big absorption all if had of the negative was at second And negative. you the a you started and look

that think a issue consumer say ignore out and it. can would definite that’s I And so behavior I don’t is there you

also being and is it came XXXX. less -- we in falling just out based with and -- it’s occupancy robust view that’s economy and moderated and why on Our a rent

consumer behavior… on Rich the And

Okay.

people … purchase last of side, one of was the XX.X% for year. about all our homes, in which gave stats out that moved we prepared remarks to was

Just on to the to outs that refresh that just month you number of number move XX% -- purchase dropped a January, XX% homes. in give over

-- seen falls on is next financial And maybe we into my middle great single that during staff consecutive digits it have digits two falls by quarters single and crisis. quarter the of only guess below for the

are territory that’s people to of to of and don’t beginning some ability affordability and -- in pretty I out think uncharted we mean, we and buy I to willingness getting of think homes so, apartments at the terms I of cycle. are housing the And move that

side… It’s positive a clearly on

Okay.

ahead, Go Rich. obviously. …

Yeah. mean… I am I sorry.

Okay.

months last million of do quarters? full your rate debt debt X% here. are secured I Alex, to quarter rate should from we maybe am XX% went I anxious you know you $XXX be to the through coming year the the One variable something right-size the real that exposure in quick Thanks. doing expect the right, numbers the get that call to you and had deal, for I if or that XX%. number question exposure expecting debt. for Is a

Absolutely. Yeah. Yeah.

we our tightening. this guidance, the coming in any have capital and So Obviously, been market have are assuming closely. are Rates we transactions. down morning not watching spreads been until

If we with out some have So floating closely. fixed take watching of this the debt are will we opportunity, that rate we rate debt.

are under But and in we really interest through long probably that down rates thesis at that as as fixing we come based time, the can. sense going this sort point upon to to year it out push we the makes go are as rates operating of

So if option said, I going that’s our we we into though what’s we see take baked opportunistic and will model, to as it. an are be

Thanks, Thanks. enough. Fair everyone. Okay.

Yeah.

question with from Golladay Wes Our next Please comes go Baird. ahead.

to correctly. up for time. just taking question, I understand I the Hey, want everyone. if last it Thanks that follow on

you interest to have just be pay savings looks a guess, little it a that and that I X.X% just to a be I X% sounds floating you if get off, just more, bit to to like it like today So upside can were little you would think, Would at lower you guess, take aggressive cited? I penalty rate a on X.X% it but point, want than this debt. the that today, around guidance and I borrow and bit out have you

whether we -- and on where continue you, so tell to in spreads and week get was XX mean, I obviously, want better can basis right Yeah. have And this me so points, you I the you to But this if would not want I heading or have any on Monday, and morning, came see asked in that’s told will alone XX that. see XX, we would direction. number rates we about

there transaction the and X% go into On Fund certainly, that’s math easily. that penalty. much, pretty Obviously, is with debt a floating associated the rate that the can is we really not assume that X%

loan, line no there on what’s and our at our look what’s we is on penalty. When term

market improve, this us upside the give does if there. there really unsecured if and some -- continues flexibility potential that to So is tremendous

expect if would be then you that year, then to you impacting now? -- I a Okay. comparable Is of cited you supply and portfolio lot to And directly supply think, back your to of out going Houston, that supply look for next were XX,XXX. to

in portfolio. directly of built stuff most is comparable our being Houston not now the So actually is that right with

Some submarkets. of it Midtown is both and assets obviously those of in there’s the Downtown been of amount reasonable assets, a construction

gotten But started starts. just and maybe and slowed it’s there supply our in portfolio built now suburban It Houston. half Houston in year considerably ago of in been in that suburban a really the much terms new markets hasn’t new just a and

double when market at So with of of -- I when a be markets, XX,XXX set to like A XX,XXX it’s kind these in take this apartments example on a that take headline number, good would you as year we just think headline are completions. and scary are you a number Austin there’s to Austin, most starts see you of be got see completed sort in Austin.

geography is go that you that. amount Downtown by area when such or community the in one all around have But of big impacted through and of our really portfolio the where literally is, of a that we is

than actually you, level submarket in portfolio assets greater our or to a huge -- not water supply but rocks to oriented if think the the market throwing particular matters, it’s little the raises like not if if it’s would Downtown heavily I what it’s in and to than it’s a pond where be going unless much concern be -- be. the a your either Houston in were bit, are Obviously, what Austin, all So issue margins, at near it a happens in but located. it it

to Got down… be -- or it. comparable to it just And next it is that, it follow-up year on was you going do think accelerates

So…

view … early any that? on

Yeah. completions completions On sound and or apartments at -- XX,XXX about… for me, excuse Houston next starts, that’s we year, have it

Okay. Great.

…right.

everyone. Okay. Thanks time for the

Sure.

of Our with question Please Joshua from ahead. America. Dennerlein next comes Bank go

everyone. Thanks Yeah.

the have is Just appreciate that from get be have just we going leases trying XXXX from of market sense to lapped XXXX? now we or to FFO I the below Is XXXX that we net something a in midpoint. on this wanted on how base into kind of to to should like out -- fully Fund build that it modeling Just forward? of XXXX wanted to at touch guidance I the acquisition. amortization touch factor

XXXX. Yeah. It is There in nothing fully absolutely out. is

variance at that looking the So to XXXX compared is the XXXX. recognized $X.XX that zero in as are we you in

Okay.

my on touching of like seems maybe Phoenix markets, screens, then maybe was Alex. it’s base the it that’s It Appreciate to see that, market some a your it’s like looks And interesting weakening. the some Okay. kind went color you occupancy your up kind Could more versus of seeing are ground many around of on and just you is kind provide and positioned supply portfolio how maybe new sequentially. how... what of of

Phoenix year apartments, of have -- We XXXX for Phoenix got XX,XXX in XX,XXX employment growth next we have is in about completions jobs.

equilibrium deliveries. out of to So growth little of in that’s job terms a bit new

-- have they in the actually new were actually Although deliveries substantially the where year. down from are previous pretty come

market moderating. -- I think listed A- have and So is it Phoenix an as we

think stable, operating right overall Phoenix. A- in the that’s I so for and that excuse seems me, So or about environment

the Okay. Appreciate time.

Our question from John Capital Kim Please Markets. BMO go ahead. next with comes

lease to quarter, your I this again, so But widened versus growth, new the component fourth guidance revenue the especially and year, debt renewal seems appreciate in renewal rate same-store missing the even On January. since Thank in rate be spread more you. is breakdown. one that

and run guidance guess what’s I into year? lease is rate renewal is how your the that versus new my good this So question spread for factored that

Absolutely. Yeah.

to we one-third year, that X%. about blend about renewals When lease full up you we the said we about for up you that X.X% X.X% that picks X.X% plus the rent market out, So, to gets capture. loss and have that of the would and new the got leases up

that you strategies. going of sort you we if third renewal about saying then timing get based what that that So so going lease you are a is the of are about were addressing, and upon we is to get leasing think that’s we find and based captured is upon to are what that renewal in that component component will to and loss

you in X% do growth So that’s growth when How reflective tie of X%, of the release rate? rental say market two those together? not

Yeah.

leases in what backfilling the coming also are picked are December up last be new you and them, effectively the rental getting up to lease that And are market XXXX, rate XX, lease. are then to is going rate to renewals, rental to component. renewals if XX, that we market, is you that expect to as So pick up loss if the then XXXX So and the right? up you going in picking December people the leave that’s compared

Okay. Appreciate it. Thank you.

Absolutely.

Please go Robyn from Green Our ahead. with Luu comes Street. next question

Texas noticed throughout markets? growth Are I you double-digit similar market trended this Alex, XXXX quarter. morning. Good for Florida expense basically expense these and

Yeah.

flows how a of sort type would not that, see property item. you tax refunds of when and to the lot no, and that expect a so, system of sort to So is run due of rate through that be that I the timing

high. bit I property But expected know fairly property for be higher. seem a the I little are year. pointed to this mean taxes and Florida Texas you about X.X% portfolio to

see double the to states range? if do in high not you So digits, print the single-digit

the do think that states Texas having No. called about taxes, And was of you out you but Florida, specifically not them. have for one property higher I if

you Colorado. and have Georgia got got you have have got you Florida, So

a are expense And those total are anticipating expense higher X.X% markets have so the are we of expenses, averaging tax third growth higher higher and in if property property up the and taxes that we that’s those growth. to going having the our markets make where, have are to going property that taxes are

again yeah, Florida in then Colorado. Georgia I and So, and would that expect once

portfolio market, I to people seeing even out are And or front is in That’s talk about trending door average? state? DC how want relative then the And signs you DC the traffic clear. to to of migrate in to any suburbs of starting the

we seen from Metro. to migration from or but not opposed top certainly yeah, would like out relocation have purposes, three in have that New from terms certainly It’s as -- say proper I four destinations. DC get folks California, seen margin, We of anything DC, or up some DC the York in it’s the at show for Atlanta particularly do in the we

the areas work a think, and have have to than DC to again, anywhere. allowed from been is of I basically office your their where to happen be us in they proper driven suburban DC and been to very people reluctant lot that just you return located employers more So, by is proper, offices, because

And if from proper in have DC you you flexibility. in XX top to can work from anywhere places complete probably your is work if not

it’s proper and that prior think, -- more two we certainly DC assets we three in from what I have for have COVID, those had yeah, we So, of to assets seen sure. seen than

But migration. compared XXX,XXX three out net Washington, has over in compared years positive to migration DC to next LA, for example, the

don’t -- door do California the you not back DC big other open it’s have versus of as you markets. any in as the So as

This to for session. any Campo I turn concludes back conference our like Ric over to closing the would remarks. question-and-answer

the you have will be we Thanks. We any appreciate you call all today if and around. questions, being on other

we be call So more you to just detail. would happy and give give Thanks. a us

today’s The Thank now concluded. presentation. conference has for attending you

disconnect. now may You