Camden Property Trust (CPT) 28 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to Camden Property Trust's First Quarter 2023 Earnings Conference Call. I'm 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.

We will have a slide presentation in conjunction with our prepared remarks, and those slides will also be available on our website later today or by e-mail upon request. note, is please recorded. And Instructions] this being event [Operator

found our would prepared review in we advise Further Any our expectations. making to Before with performance assumes beliefs. statements and on that of can information our subsequent these from and cause about on not I statements and forward-looking expectations to these like are These no based because supplement involve be we the management's begin materially and future will actual remarks, results to guarantees events. made differ encourage and statements be you represent current them. risks forward-looking we everyone SEC, obligation call statements the uncertainties or of filings today's risks current update opinions, could that to company

Camden's available is to on at to time reminder, hour. complete be which earnings a our in and respect and will the complete non-GAAP it one first call XXXX website would section our like includes call. reconciliations We of measures, camdenliving.com, quarter release within everyone’s As financial this Investors discussed

after to please call to If be So initial one, items to rejoin we the queue respond to today, to your happy phone if in additional e-mail have concludes. are by question the unable the everyone or speak you would with then queue limit discuss. we questions additional

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

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[Audio/Video Presentation]

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be to good. Operating fundamentals continue

exceed and cost their transactions recalibrate like. XX% look on to year try Activity our or of Multifamily what last may as We future and quarter capital dramatically. market XXXX sellers have first dynamics are the plan. meet increase the to down track slowed the buyers for from was in

New legacy starts only be capital committed with starting. projects continue elevated to with

starts year We second start on in desired have the its monetary betting throughout effect XX% experience team system. expect to commitment next with our and and the true the in quarter the improving Team in want their I'm through reduction one lives thank banking to stakeholders, policy for a in way Federal lag the congratulate at a staying significant once to time. work crisis starts and the of Camden to make beginning Reserve new or over, and our hard policy reduction their I our the a customers our and members, two. will

Next up is Keith Oden.

Ric. Thanks,

our as revenue the XXXX of raised Same-property result. on revenue first a growth XXXX and the Now quarter at ahead trends. was midpoint results some guidance our expectations April we've quarter for X%, details our operating and of

three rates and posting Florida, results. Southeast with growth highest Florida the saw we Nashville strong markets: also Orlando again, in Once our Tampa,

X.X% up a blended by new leases X.X%. renewals and leases quarter First grew of with up signed rate X%

preliminary April with Renewal from and similar are range. renewal new higher rate trending May in growth offers the blended rate growth Our moderating a level for sent slightly results lease growth. and rate at mid-X% were out June

down the our XXXX the were the we first record rates to growth actually of achieve historically than these XXXX, months in seen levels year. four is stronger of months would expect from year-to-date While four first what during performance the

is the of quarter of homes our averaged dropped Occupancy And first to to quarter of move-outs XXXX. the in first first to turnover on for XXXX one lowest levels during date with in of better the the in was XX.X% record quarter, for first and XXXX quarter XX-year history. trending Net April. XX%, purchase XX.X% the slightly line

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

Keith. Thanks,

leased; new lease-ups and Camden Tempe NoDa, per is leased. a month XXX-unit, remain Our XXX-unit, at Florida, month approximately Camden million at million XX community average during continued which usual during XXX-unit, per leases now units over approximately is during per in as began and the and community Charlotte, Phoenix, a II, we quarter XX% Atlantic, quarter; which million XX in XX at approximately development stabilized Camden XX% Plantation, the leases the stronger leasing now $XXX than $XXX community over in month which quarter a leasing $XXX

Turning results. to financial our

report from to or will Over we Camden metric fully the NAREIT continue forward. has funds FFO, definition supported the years, that going operations for and

current be also multifamily reporting an core the considered to business to in part improve effort our our FFO we operations. items not sector, core practices for and report adjust with REIT to peers will of in the of However, alignment comparability now

adjustments changes both presented to level will events, our property metrics our drive full of have quarter adjusted FFO, core XXXX. XXXX the adjustments our Any are property during second severance in and with guidance amortization, be or night our we will below charges acquisitions market unusual make supplement. NOI model primarily in above performance release located in other which or leases our in the from quarter for XXXX actual and year casualty of results. any, both and also related to level on-site components earnings if metrics to the first same-store of staffing in We for associated our last large be our included These the section

first quarter, the our share, increase better same-store of and core $X.XX $X.XX our These the XXXX. quarterly NAREIT represent midpoint primarily a from both FFO results ahead FFO from per results guidance, For per from first core communities. reported prior of resulting of of quarter the share XX% we

bad of quarter first non-paying All lifted move-outs experienced primarily level of the Our residents as outperformance their which $X.XX municipalities by operate we now non-paying to anticipated during with as higher-than-anticipated we the resulting the earlier of and of year. our restrictions the the than first year levels this and amount by ability we residents the of happen enforce in was contracts. share per to rental move-outs have driven twice in lower-than-anticipated of a debt And quarter. quarter last quarter compared move-outs first

of debt resident residents by the on to when a for opportunity a early physical reserve occupancy, benefit do having delinquent bad their move-outs resident XXX% delinquent a who who the having and estate our non-paying back, is Rather, lower put we these we new residents there of actually some abides balances. of negative effectively contract real from therefore, pays. net receive commence leave. rental with lease impact And pressure Although no

which primarily also slightly by $X.XXX of in expenses. was driven utility net elevated rebilling, entirely $X.XX driven higher rents was levels market in property higher-than-anticipated by higher utility and by offset outperformance income Our other

generally aggregate of offset from claims, revenue of primarily spike property share smaller by property per unusual in $X.XXX $X.XXX per which levels not insurance of much $X towards resulting by higher our results Our same-store expenses occurrence, an positive did exposure. under was driven count same-store higher-than-anticipated partially million claims $XX,XXX

illustrate the quarter three number spike, At claims of of the in prior this To our years. rest a is first this partial the that we of experienced discuss time, anomaly, first an in volume the believe of experienced I'll the we which have we the but later. the insurance we cumulatively year, to forecast quarter resulting the year, increase of same claims made for

for XXXX severance guidance communities of our $XXX,XXX noncore to X.X% quarter considered are from X%. have These below-market growth XXXX Our this same-store amounts $XXX,XXX offsetting the was X.X%, of removed quarter and and purposes. of which within leases amortization growth now drove changes XXXX original revenue and with expense guidance associated called XXXX with first revenue associated original approximately results been our model. of NOI growth previously acquired staffing XXXX our from approximately for of comparison Included costs on-site first of same-store XXXX

half Additionally, XXXX, The from same-store effect revenue guidance and increase be purposes. X.X% same-store original of of XXXX increase adjustments XXXX losses results our original also to back be would will these X.X% net XXXX full which X.X% $X guidance expense to a X.X%. included from in to our same-store year XXXX our from comparison removed our primarily the from noncore for million results casualty solely

of X.XX%. based midpoint growth we primarily property mentioned market full other the This rents night, Last first resulted of outperformance, revenue upon slightly our our non-paying and move-outs which quarter acceleration year further residents previously revenue from additional the our and in higher is net increased increase to income.

our increased to higher growth by entirely expense we insurance further Additionally, of the same-store driven almost actual midpoint anticipated X.XX%, costs. and

the expenses. previously taking operating consideration increase monthly into noncore higher we in by anticipated taking quarter X% After for originally our casualty our account increased anticipated claims, events, XX% was represents into of Insurance mentioned forecast. after in And losses adjustments the XXXX. approximately first total to have our XXXX

increases anticipated X May increase and expense anticipated are XX% providers in as our continue partially premium taxes. now large insurance approximately by total property to our insurance These the anticipate XX% insurance global updated from also remainder have increase lower offset year We to by losses. of We XX% slightly face XXXX. salaries the for will

net both the is noncore and effect At NOI midpoint property our full for guidance into X%, and starts events of year $XXX acquisitions, the in by of assuming $X.XX. dispositions taking million million the level still $XXX adjustments midpoint with year in our FFO no development XXXX to spread of core approximately is accretion expenses After the dilution of revenue million or XXXX, the and of $XXX same-store increases throughout midpoint XXXX the we are our million guidance $XXX spend. with million $XXX development of annual offset and of range,

We earnings of the quarter XXXX. guidance for second provided also

higher sequential expected and primarily maintenance range to for in be resulting offset a $X.XX representing share and NOI peak within increases merit We of the per NOI our expect partially from increase from repair certain during from midpoint sequential $X.XXX same-store $X.XX $X.XX of non-same-store the an a by annual revenues development at core and second to $X.XX, timing communities. periods, of the FFO related our seasonality quarter increase increase our sequential per approximate share the the and resulting expenses leasing additional to

fees and from partially increase is by resulting various $X.XXX This a rate G&A $X.XX FFO of offset company from a core from quarter in $X.XXX timing expense. cumulative second decrease interest decrease public the floating higher higher

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

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

[Operator Fargo. first from Jamie Instructions] our come question Wells Feldman And of will

on the you hoping in that like the was heading be on what if decline? a different I if seems then anything drove it down blended X.X% maybe It from into guess there? spring about quarter. April there's I talk just to into X.X% read leasing, Great. across else looks first trend focus rent to a the And Can to to versus markets, growth moderated basis.

Yes.

to the expect last the decrease. do the -- see March this in have overall, previous April, leasing looks in -- did season. seasonality a than COVID. two us But we years a leasing It's lot They're to a transition just back to So we we into slight to activity. like April spring what and of think we years different our transition had see certainly is

So I that have I seasonality. a we'll think don't normal see --

original that plan. to think we're on I our beat track

first I market quarter in exception the the single think on at budgeted with revenues. the of the of every end actually one ahead XX, we're of

from perspective, originally second and into it anticipated So we and better the looks our slightly track going than normal; what B, quarter. on like: more A,

because April. of leases we're signed in rather indication X% the think an the Jamie, the in first more the leases went more from direction effective X.X% And I'd I than signed focus the signed And going. quarter is on to

So it increased. actually

The from Dennerlein comes Bank of next of Josh question America.

Maybe there. one on comment follow-up just your

performing budget. and is market is markets your on said market one are the What what You that flipside, the best? underperforming

Yes.

and actually in So that are was our but primarily to elevated. evictions original skips below on budget due first below pretty quarter, Atlanta revenues and the is

turn it We for markets. fraud, of that of And also had see the time with level was that some from challenges our of quarter. time and up which in elevated in we several of sort an fair to just Atlanta's did to pops amount a happen,

the single Orlando, outperformed continued We had quarter our a Nashville other strength the market Florida to Across plan. great than Atlanta, original everyone, plan. markets. every Tampa, had South board, in relative

So off to like it at quarter footprint, overall, of it really we're well I good second I in performed think as think start well. first quarter, the the the a looks very and really

Johnston next question Derek Deutsche The comes Bank. from of

a macro. you decline I'd become your of seeing interesting development But balance really a possible cost You land given XX% Camden development? And downturn? sheet so that starts the to to as banks what in new the complete, does perspective given remarks takes you exiting from opening second new are and the mentioned given in in half 'XX product have couple deliveries a the ask, input for it years drop

about getting debt think already what's that third-tier -- are to. and sort that legacy and our you committed are or deals done. the on, of that going sort getting only equity second- their Any done, new deals developers development have are deals When either of Absolutely. not

so you maybe up second to 'XX second in and time quarter significant probably point a we and all of the as interesting market. XXXX, sets that in, long will part, bring And decline believe, development through obviously, takes in out, environment the way half in be into which beginning first a 'XX starts because to the the definitely a pretty there

projects -- when pipeline, our and at definitely people good sheet could in be in -- other market into new delivering given we balance what delivering can't strength starting and So a XXXX, really look XXXX. we'll our definitely our

costs, I the input that the is, are think good is flat. news they

haven't level low is We news. major started to a that's at Lumber And very good cost. today. see in decreases

this say, it would So put let's doing rather last and a least we flat. inflation, were at than pro at now X% formas, in per time, we're our month usually we if year

start business to today be And inventory to looking getting the costs they're Therefore, through new potentially, margins their out less working have once have squeeze the, I and projects here. constrain horizon, the think, which to there's more and more the I from competitive on set start competition, be subcontractors the they they have to to subcontractors more built. for going their with going should able down because and think, get margins perhaps

haven't down. upon is. gone hasn't day, workers the will are salaries. construction depending The come know going of question we happen subcontractors, folks fast largest And are could the had pressure the at -- the of lot side compress a that starts big in input the that or on input that are on that's of where merchants yet down end part of you just how to that the But cost construction and the is The business. for

Alexander from Sandler. comes of question next The Goldfarb Piper

negative lumps and discipline you of in Ric taking positive been So to in I and pretty or upfront you, all NAREIT Keith, your a the over standout ask on have guys have years. FFO

an you to metric, core definition. chose standardized move why not there's curious FFO of no is official when Sort guys

of dines a So la sort everyone carte.

did recurring it. And I out are we back just all are business: I debt prepay. parts of expense, mean, the most the storms, a of items that And mean, legal study these people normal of business. actually

this I'm curious of guys just route. chose sort why to down go So you

have, we've the they Yes. been And that numbers. by are confused you example that. it. investors We getting give coached and other shareholders chose of I doing we of our competitors will exact And challenge about because this sort were

X/X XXXX, When of rents Teachers the acquisition probably our of analysts on mark-to-market portfolio. guidance half the Texas for we produced our missed or from initial

item. see just at specific look where and this not figure footnotes it and people to try in item through have it look way to they we have a in so that financials codify And actually yes, to out, -- could wanted okay, and

then more And the so think, information and the people to trying it future more folks scour -- to And going understand simple still earnings. give We just for for on definition so simple those to through and it they have we're to obviously, easier people, don't it where trying in for variations model have is just having make to try NAREIT FFO we're numbers. statements and are people makes understand what's to we think to I it adjustments I NAREIT complicated, financial about more people. make

Yes. doesn't only because mean create So it's certain may But I -- have that's worked. for financial it years, go guys And you to XX analysts through as it mean, the our right? job items. I comparability statements,

You -- other companies have others.

it confusing, the not appreciate makes easier, So arguably but it feedback. more

XXXX all this between all we go there, big statements. go at conversations that you in with is NAREIT in the relative to in and missed And people really after items core. now do have have look can have the to Based through don't on and item the to you see XXXX, and you they reconciliation dig financial

footnote. you pretty of job know I go And just -- folks, find the stuff. analysts and we unfortunately, make call terms it being don't want And to in to of it overworked, want may you of through the able that, are to it for every if time have guys lot easier are pretty but to read who those a be

And it's use the anybody news, for original -- definition, want the people the there who Alex, is to NAREIT to good for for use. that

more think So it is just generally information -- I better.

thanks. So

The comes next from St. question Haendel

Juste of Mizuho.

to I commentary the wanted to the the of delinquents long-term on portfolio. getting of go some back

'XX perspective? from what's to bad updated can your in SoCal. us expectation? I impact I full net we you the guess debt think year what's guide same-store primarily And a assume you're remind referring revenue

Yes, absolutely.

about got we've anticipated we full And basis basis the points originally, about XXX XXX today, year. So for points.

and a too just me give you on evictions. let skips color little So

XX% skips in basically and double us people that of And So owed significant those skips amounts evictions they first what the are normally of money. were quarter are. and evictions

So we're that evictions good people is paying as doubled, is, out high was occupancy and it news getting and while aren't the skips as our not have our rent.

a markets And from So accelerates in perspective, hoping good California. economic it occupancy really that thing it's we're happen. that to Southern an like have

get the we as us. with real soon for better to can our back As customers, -- estate paying

been back our hope in as about not, And roughly XX-plus don't for data back point -- I to here actors up reason that to And the bad whether back and and of -- get reminder, basis XX? ever debt at expectation bad And lot And XX XX down points. to certainly, just points. coming through. ran a went have curve. closer a world any is certainly then sit basis it's clearly, we're from to to And years, debt debt get that of our we it's that XX and expense we to put hope order basis we new it we've don't will we don't but of points once COVID, XXX all believe we get where are points have that it's -- where cycled peaked, I basis today bad just a a XXX. that --

follow if turnover, or what's I'm that's the I XX% Question CapEx I of helpful. then the going up some plan could. No, And from go expectation -- up your are people, plan skipped, the these assuming turnover guess OpEx costs getting picking there? after up. who with the to

well. that's Just as curious embedded expectation your already in if

homes. on purchase low had move-outs is very that offset the to we've the So turnover

So benefit on that's been the side. that

on to legally or associated pay maintenance who and the we going move and uptick them obviously, we're with CapEx us. really out owe repair what we're make to a with what seeing costs And try not can they do then turns. balances, So folks significant

from Eric comes question Wolfe Citi. next of The

higher year? talk be much same-store XQ were overall revenue It expect than piece in was Could increase markets thinking, just in drove it the how you a whether rent of X% market sounds due came growth to about this higher what like you growth than and still to which sort improvement the rate expected. you of

Yes.

you of rent the market markets. that is hair What think will market we board north see what our rent really one tell we our just That's in of X%. be overall I into baked got across going higher So did is slightly to we've a every numbers.

So that's as we'll a obviously, X is little a And periods. we peak how but makes continues trend. see optimistic, us leasing go our good through it quarter --

from Ami UBS. The next Probandt comes question of

supply I that Houston market. was was It's I forward? of going of muted the more Houston. making level thought good what wondering for if touch demand? a just expectations due challenging? conditions that, your if are underperforming Or you're to but just on is hoping been to you And was seeing bit a an demand

really supply slower Dallas has the think, to Houston compare long-term is primarily were back Houston Houston And market. jobs you the And a that COVID. not is added of good energy. It add energy challenges. cut say, Austin, back was going to, I what's be, or interesting companies during definitely have that all jobs because to

of to you did oil the energy sense or kind Houston much -- came But of XXXX ending in when They've population XXXX figured moved Houston out was growth had during Dallas helps give that recently The helps that was we current XXX,XXX we efficient. at we because you XXXX, be that of how units. issue been the versus the metrics energy top And able city fifth higher the or people weren't like Houston, Dallas. XXX,XXX more -- a was Houston and for Austin. But roughly census to data that also in to other -- or of only kind other supply, start example, out period. one-year Dallas same for of that the than second June like the migration haven't at looking the largest replaced jobs seen XX, this haven't just

a saw it's a like other we in increase big than Houston Houston. lot of in more a versus So steadiness of markets

be be positioned steady the side And well pretty ready over dramatically grow. supply growth. it should with shut to Houston down to I think really getting the to next two, year continues or

at roughly that XX growth, markets people three of base. -- population lost And XX,XXX same were or Camden's America, look which if at L.A. our lost XXX,XXX markets in markets New market. and in York, the population think net, XXX,XXX job the the we that XXX job our XX gained or top were major gained in population in cities other you while -- you time San about XXX,XXX When Francisco almost the

it's it So here, it's not South hot Tampa, obviously, like in still is white while Orlando, Florida, respectable. pretty

Okay.

So of then say impact? it's would more you a that supply

I I is more would energy. didn't that, Dallas than and a mean, supply yes. don't it's because say Austin white of yes, think -- I if of like you because impact we job have it growth have the hot the did --

And of so goal along. more a been get it's line,

So sizzle it's little the of that. that sort supply if market, take to you less -- a to a little want the the of combining call jobs and out and it

put around put in grew around quarter, rental just our that to Houston -- actual some kind to the some rate in X.X%. of numbers the just first by average So context -- monthly

grew portfolio, at our higher than if overall that. of course, much -- the So

at that we cases it in we're and seemed they prevalent today's world of good through backwards quarter. days, versus were be more fraud growth. but say, you itself we think Houston that. some challenges again this in to were pre-COVID to the last of evictions one-off a gosh, related a second But were for than was working looking slip if if -- today and run really trends my -- few a you'd comparing occupancy around over the we oh have that rate that It's to little And corrects quarter kind years, had skips in in XX

going of overall, of So Houston be be plan we at this to think fine I time well the and thought from year. ahead is is it what would

be to think we're So I fine. going

of BMO next question John Markets. The from Kim comes Capital

filling John. here in for Haneland Robin

peers levels? adjusted. more acquired in at a rate, your you'll in deals transact of lease-up X.X tax a cap lease X.X% you these One think Atlanta, Do see

I do.

that use given rates can acquisitions. the the evolve, low cap to moved have think very as up I market volume and obviously

sell I able merchant think pay going their to to of point that on. be off. to And that there's there time fair builders think -- going be need just to debts a be I in will a to going there's amount

they short any it's now, pressure Fed's If them. come we think I position, where is maybe be see on light to at for and get some once to there's And merchant they as likely end going as rates, they putting should high continue hope more the -- anytime to bit I more the soon dashed then especially are will those more be there. keep than of pricing tunnel don't they'll then that there buyer's point rates where towards builders. seller's the given a pricing transactions And which pricing, opportunities -- rather

Got it. How you there? opportunistic would like be to

to tipping Well, we're get do positioned attractive market. of a cost on where when in that balance the attractive? And cap replacement strong pretty to a really really point opportunity today well the lower you cash-on-cash mid-Xs that's when will can return sheet. question And buy X, guess sort I for than real with a the rates be, a we property at depending look

the softness take I advantage supply Camden, have going in equation. that. to given of think should buyers, to the And that forward going some are you certain including markets, of position side

Chandni comes The question Goldman Luthra Sachs. next of from

about are concessions the where market where talk tracking markets Could of a bit are and fourth you your perhaps how concessions quarter? the since across up has use inched

because concessions. the except of case only new where always lease-up expectations. we're it's doing in just use don't of sort We a consumer's the The been

have lease-up pretty phenomenal on lease-ups. we been new lease-ups where have going on, our fortunately, rates So the

much using would. than we actually normally we're concessions So less

almost product at month through South in our leases averaged insane. having of entire Florida the lease-up, per are We Atlantic XX kind which is

math. the we're certain we assets, the -- portfolio, that we broad our for although -- I they other that don't it really And at don't easier concessions well. use our so would do use competitors, great and and having model, have -- tell in you it with stabilized goes. management, our see to really make we pricing comes we're success lease-ups so revenue just our consumers net don't again, And submarkets, you a and And we -- as we

some we -- see part They softness, reactionary. just very But concessions. not it our the they if continues be to And and double then they concession. that's offer tend pricing discipline. just they Primarily, soft, then of

the where new and more some supply than ground a the being the you've in on refresher in standpoint? just What from give And that are Great. there. supply you're are you what markets more others. seeing pressure, us talked past, pronounced you about could seeing markets Perhaps

through you after details markets, if kind XXXX go platform Camden's across we But Camden's that running if the some XXX,XXX about were you I markets you up completions the like the market. just -- look, mean, had and go we of combined, in Without so Sure. call all give apartments. can market macro XX into to by

We are do number and numbers so cycle. based in that Ron would about Ron's at his We markets completions about Camden’s about be jumps XXX,XXX that that in a the on numbers. again, to year to XXX,XXX, -- And for increase XXXX. jump across to expect Witten's Witten's to XXXX, in and these this this peak that XX% using least expect numbers,

continue is -- the we have at pressure and So new when years, our two next location-dependent. for completions supply going But over very are going to to supply have -- you to we're portfolio sure.

competitive being and And Houston X in where delivered down of areas. actually have and or number what or supply be to portfolio there metropolitan okay, So that's just apartments thousand going because are Austin is -- Camden's drill located. built delivered this have large you of city, in to is say, X being you really

portfolio. assets XXXX, construction, go if with total basis, our all step only XX portfolio, different coming in that And a on there's that's of is this that, new of our point if Camden's product old, that's about supply average markets well. those competitive if price existing through that locationally across makes as some a of the And submarkets XX in you XX% years one go XXXX and there's say that delivering and you're -- just price are point and non-competitive further you

regard, that you only And at XX% much it going location probably that Camden's experience you for screen becomes it about point, assets being look are to it portfolio competition and direct are if of dawning. we price that less both with. And new in across there's delivered when the

first the I a impact, of to what of competitive it would the this of are stuff in it the truly be and if if with But of products, seeing that year, say out next XX% we'd Camden's the see coming kind across lot that lot we for based even we turns truly -- increased our of be only we're competitive. platform, were at looking about is a completions now. was of quarter light on to reality balance results know going the right for our

a macro think pretty good I for Camden's at we're level shape markets. in

question Luu next Street. from The Robyn Green of comes

finalize coming property Can appeals you tax more to color more on the appeals? of lower provide Is expect how you do And in expectations? many more the result this a successful quarters?

absolutely. Yes,

originally, So X.X%. to up going we be we thought were

to a up going think came some driver Now lower in than that we bit expected. primary we're X.X%. is be The of gotten we've little preliminary that that we valuations

test Keep that everything. basically we in mind can

valuations. these contest as we the will go almost through We'll work of we that And the of through so rest year. all we anticipate that

lot but this get benefit the we going values year, process. certainly actually the of XXXX, that test until to A that is won't of we're our

of in anticipating think pretty significant we're a actions. refunds, by you we're anticipating actually If are refunds sort what those, of once about driven XXXX again, terms XXXX. amount of Most in of

where that's we So are.

$X.X year-over-year basis. a estimated Tax million. refunds on in up to be That's $XXX,XXX 'XX are

of main out in get August and So of running there through really, that's that rates, in most this and for really we the have wait our we'll to rates ticket year is starting October.

next Wurschmidt from comes of KeyBanc The Austin Markets. question Capital

the how a people think the the single-family due Do curious bundling down you up? Just of move-outs just trading sense to given rentals some residents outsized is curious of home -- piece. are people kind first turnover are are going? makes to significantly, about in but Just purchase or down in price think where what had your rent kind on you talked potentially take of you've I'm pretty in quarter, curious, move-out which it increased increases? Is years several

pretty So with the early significantly, exactly homes is come residents. is I'll down address move-outs doubled have our that have item, but to move-outs are we first non-paying right, which purchase related

So on that's side. trade-off the that of sort

reason they're with we it's two, people -- other where haven't look associated typically #X why we or we out move-out, relocation, usually really and is jobs. the The any than when at then finding reasons seen changes. seen And move for -- those haven't a where

market So market. it's and the moving moving within the of outside

had line we that and couple quarter. evictions. than had skips we last It's Yes. the first the in that's bottom the this I evictions in in is the mean, skips of and almost double first years year quarter

-- in purchase XX% move-outs near we've low all-time -- to -- So is to -- a for got portfolio. we're our that's that an get homes the

second trends and in exclusively turnover to is almost guess bit is My There's is, a But the number. fact little up the of year-over-year that skips we're evictions. increasing seasonality back on flat yes, that that probably quarter.

then And a just clarification. it. Got

You to on range. signed range. the renewals mentioned that for the and high May And X% in were renewals you're mid-X% closer June sending you in April

of between versus something So that's little the did take to give again a or confidence as bit into asking if bump just get you you difference rate curious peak kind the the the leasing higher up season? renewals

can No, you're take sure the sure always way That's we're we're and some community And process. door don't that their to there's back then we asking. that keep renewal rate target -- is closed. -- target, a the flexibility difference our that make if we always between the And maintaining make the correct. the is around occupancy off the we

So that's difference. the

Sandler. follow-up a Piper of is Goldfarb Alexander question next from The

XX% for mentioned insurance, you a on in overall. back you premiums, increase XX% Alex, expectation the circling your Just but mentioned two-parter. also

the I'm includes latter claims guessing So in the your to addition premiums.

properties? can't of demand would fill like in sort to curious you therefore, Texas have just that part happens that second be on Texas. anticipate sort and what is, more with to unable and would given or and on that going those just a competitors get in potentially of Ric Florida properties book Florida put close, your that's do properties insurance, everything The year this and I'm would insurance their Keith,

Yes.

first on you're Alex, right part. the So

is. it what exactly that's So

actually our is higher to to much of got that -- the we've the to premium amount is So or we're -- going is claims. higher But addition bind than on just a offset just that we excuse anticipated, Monday. that me, and

because to get to their Yes. down insurance, properties shutting going happen. they the can't that's people I don't second And question think on

an creates insure I think a is folks like what who opportunity happens for portfolio. broadly us very is, large it

to Our in be insurance cost than is lower a going somebody Florida. can standalone insurance get policy that

to going put the it's the think see don't is more don't you're think insurance and that going be down, perspective. people will sell, think to I pressure but we'll what from reflective is on -- So do see close you're pricing to cost what I properties I of an

in Yes. able hearing are of not And we of insurance increases. Florida large are to further developments very part that start because in new

a that's obviously, net positive So us. for

of a is The next Eric from question Wolfe follow-up Citi.

Just a in wanted a XX% comment on prediction. bold your up expecting follow Obviously, around to reduction starts. it's

said you in second I to you that start think it the which expect is quarter, now. seeing

months in next -- of you're So you haven't sort us just X we why that to of going And to what's assuming over a understand help X I'm the drop sort maybe bigger that to of so off expecting? sort could of far? seen drop happen large result sort

Sure.

in teed were with that They legacy looking starts that have or all, starts are up. starts equity. bank deals the fully thing happening starts, of were They first quarter we're at at. today they're legacy are and meaning loan, same maybe looking So funded that the first the are are the

constructive going in current to be it market deliver 'XX, given environment. you is really, If probably the a really

funded. I already legacy banks the however, loans. happening -- so today, are deals being difference the exacerbated which banking by pulling are between is crisis think is the What's first that

pulled XX% an you X% lender couldn't Florida example lost a with earnest a in their called Bank deal walked money money they bank And and because situation. debt. of, I Silicon had mean the -- me after I'll said we debt debt. funded -- they fully a and the of the the Valley they or give equity, anecdotal the pulled developer that amount significant XX% equity And

when mean, thought fund they're when not regional my in to funding the deals -- that And they at would I they future. friends you talk I banks,

construction numbers enough prices come haven't higher and rates interest So I don't come rental the just down has down only cost rates land work. think where enough, and not the with hasn't moderating

to March And I We think might around quarter. you will the see the was, quarter entire units. starts the that XX,XXX be you're was at level in for second that which starting start -- think what

of starts. happen, point in a market place, starting that another it's essence, basis just those the to the developers crafty deals think why almost legacy But since are just of banking created, I haven't and altogether. enough that's So basis their has pulling to or in point increase as XX rate in you result falloff banks especially keep seen a XX dramatic crisis out

now just for very be Got up Yes. north say, five, months I last guess been capital six X was volatile that why in I high have it. going while, point my we’ve year. mean, a while. moved for follow-up to Rates a to a ago of that is environment been versus, in because markets

like with happened sounds what the So starts lower to banking potentially it's some lending going Valley more the regional of Bank it's your now. see Silicon that going to has It issues environment. tighter some recent interesting to sort is created response forward. that's to point just what's thought a And and really drive that that of

about all, it's of is, fact, on information think I banking of out twofold, First lots right? And the lending. Yes, tightening there's anecdotal There's in that. that. question crisis no there

are project the most people. gone you for cost then group, they equation of by is But And have the part developers I -- that a has XX% have they'll also into mean, optimistic capital XXXX. up math and other of very problem.

going and the input higher rates just math what try versus I think you my is the be, I put work. flow then cost you And to the and figure of higher out, equity, when then to on interest and okay, cash capital have cost doesn't

going shift you a where there's major going is you big starts, okay, go you start then people And XXXX. bet and ahead will so -- think on which think, seeing in thinking to until in happen, and -- to unless I'm declines

And flat. pretty sort challenge of problem. increases, The costs a increase stay cost think on rent capital massive your you've debt that simple assuming got construction I your is bet it's to math to and just increases of cover

and And are this starts And in try that's I'll can't, let's they the while the now, can. now. have both capital, -- to going on build figure because what And they markets developers when happens again, debt right they And are "Well, will future." emphasize saying, because if always out don't. what's they right build equity developers the

The next Wells question is of a Jamie Feldman follow-up Fargo. from

Great.

magnitude throttling what's start on deliver the when to So 'XX and market into or do pipeline? make same comment made you go no-go 'XX. you the maybe up I have ramping up a about you development the really decision mean, to those consider? that even lines, good And along before a would in

the the And I balance into then right where of much pretty an you good market? about will something markets, what supply when you know is there too to mean, think be similarly, deliver not and opportunity a

Yes.

billion that we that we're is So at I when now -- billion We I a look have having, our pipeline you pipeline. or X.X our think think decent -- X.X started.

start. to pipeline have we So decent a

million of We starts. have generally to million XXX XXX been annual from -- we're

the when costs? And get And -- to questions. you again, construction work, the those we question right? then be feel do how ultimate about do will numbers feel the the down how and do are about And we market how

Carolinas markets, In look in Nashville terms the and and have some we Florida. sites portfolio our really of nice and at you in in sites nice

job all markets. are And from in into good all the dynamics all When you those population that really growth, those in markets all a -- growth, migration, at those are look go markets. viable that so positive

So would either Austin. in is be or example, construction followed be top by second the may market the for top negative under Nashville, the

And what so project. won't see We'll build are don't at. we -- happens. that numbers look a we'll just if And wait dynamics and we the that those work, think that's the

do? how to balance Okay. do And sheet, would annual your starts much than could more do average of you I be guess think willing the typical in terms you or

capacity about rates our and And still sheet. comes where if balance $X our we our under are. Yes. put on we've tremendous got you balance billion think they ultimately sheet keep I all basically down about to acquisitions, it mean, could

agencies understand look EBITDA they you time. but developments, at contribute rating don't beginning, our that at obviously, would If the over will they

sort -- a then down. And think you starts have I come of back wanted leverage could corresponding have increase a really you with could could if of so in that to, swell you

got of capacity. plenty we've So

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

Great. Well, NAREIT being look you seeing we appreciate in to forward the on today the in and you June. either in next call month or

care. Take much. very you thank So

The presentation, conference for now today's you may Thank attending has concluded. and you disconnect. now