Essex Property Trust (ESS) 8 May 202020 Q1 Earnings call transcript

Good day and welcome to the Essex Property Trust First Quarter 2020 Earnings Conference Call.

As a reminder, today’s conference call is being recorded. Statements made on this conference call regarding expected operating results and other future events are forward-looking statements that involve risks and uncertainties.

Forward-looking statements are made based on current expectations, assumptions and beliefs as well as information available to the company at this time. A number of factors could cause actual results to differ materially from those anticipated. risks SEC. found these filings the about the with information can in be company’s Further now pleasure is It my host, Mr. to introduce your Schall, Executive Michael Chief Essex and Trust. Property Officer for President you. Thank

may You begin.

to We me the our today. Thank for and those will and our Adam all These for joining in is call are best as history. with you through John participating challenging unprecedented and those comments, COVID-XX, events call would times our by Angela offer their Burkart Kleiman here wishes today. like Q&A. to Berry follow impacted we nation’s manage caregivers on

We the reported with strong quarter pandemic. COVID-XX $X.XX, quarter the FFO our exceeding results last the a midpoint of the by first share results by guidance unaffected per for night, mostly

withdrew related an assumptions believe FFO release, in ranges. guidance press communications. we is and As noted investor providing the guidance of our XXXX FFO aspect we important Generally,

during withdraw infection a Key occur difficult decision such response the of of variables a believe FFO made prolonged the uncertainty seen. our is useful probable environment, and on of in unemployment that and of are the March the was current range the government’s announced core Since investors. great XX, guidance. the debate, model to wide I in too order phased the could as distancing as Bay the that the initial Area economic nation XX social experienced wave policy a we of second duration million impossible to However, economy. as ever over in the claims, has to we shelter-in-place Essex is to shutdown, the possibility have effectiveness reopening the After for outcomes be

markets. supplemental response of on growth can in cover estimates the we’re what today, the three rent to and for updated S-XX seeing X remarks actions transaction pandemic, in in Coast months I Page recap as the be our prepared my in found review insights a our the into West In of past taken of a property topics: will markets

the impressed and Turning have to unprecedented the created response very we has responded and the Essex conditions dynamic to to by been adapted our COVID-XX. how pandemic, with team

As scope social the to March nearly created in decisively. each information distancing response To and at team phone we senior COVID a transactions more incentives became of to early pandemic clear or comprised push practices of a gather mail. operations, implemented property tools and online, maintain the of variety the the leadership over property; provided act we all through essential

X and daily protocols. with distributed teleconference. training to and expanded work virtual a safety acquired via our contact We PPE and for to staff from process on-site We management transitioned corporate home implemented offices

their the information it’s were about rapidly and to periods addition, in we thoughtfully families during team With late safety recognize responsibility. outline corporate Essex of issued crisis. obligations time. the and for and regulations concern a residents that and of to and including to months that the The and government issues, of dissemination spirit the conducted tireless essential press balancing imprecise their to a responses of many react chaotic eviction weekly governmental fees, COVID-XX, release are to assist consistent all In And live March and impacted a creation payment we available ensure to unity to of uncertainty. of messaging X from community conferences in but protection by required employees pandemic well-intentioned Essex. many to the to great related unknowables team important is urgent stakeholders going that of Communication on complex past including how resources. those plethora Essex to video company is properly for and the Well financially plans employees backdrop, investors, amid health done, have our itself, efforts XX,

the S-XX that Street for scenario job that on of industry the our to economists. and rent XXXX a by incorporate rental supplemental markets, Wall growth are Slide West prepared spectrum expectations and a for Turning of growth GDP broad prepared have macro we Coast U.S. forecasts

wide the the double-digit While of an in at estimated extent, X%. U.S. to with GDP the year the losses expectation quarter XXXX, an second a span overall in and common unprecedented is will forecasted contraction outcomes is that experience for job there declines growth around in economy

rents or An Coast XXX,XXX losses approximate sufficient compared market negative job of and West of metros summary, financial have contagion. XXXX should quarter leading the estimate housing risk X% offset been expect X.X% estimated growth, will the implemented last from X.X% reduction in extraordinary that deliveries by in limit markets in versus stabilize quarter. estimated last in market average last XX% net that addition rents. impact an of monetary from XXXX total approximately belief our The we federal and In to XXX,XXX overall helped in not increase to to job decline the stimulus fiscal already jobs our capital our government have quarter’s programs is of the

into the in been larger consider roughly crisis they year occurred and just you today’s the the a Recession, the much contrast major If after scope. by were recession in started. case, Great stimulus programs have from days and But they weeks

federal we part supplemental, was the Page that per $XXX impact CARES unemployment the the week of On insurance to Act. of supplement highlight S-XX.X of our

job much attention. been program suffered offset it program arrive the state hasn’t have a furloughs. offices, While the highlight to that large checks effectiveness segment losses of started at income this loss substantially the unemployment and because received muted will weekly the processing for of and the by We has delays from has population

income middle receive as the they are lower compensation. would some shortfalls severe Given been middle And some less these and lower again, unemployment levels, than workers income compared in in to much benefits, workers income will to more for have benefit at otherwise. their cases

transactions for turn market. is generally interest will exceed positive further declined banks powerful in crisis, rates financial interest transaction large I a apartment since and strong force began. market. leverage capital debt, conservative the relatively apartment related great cap Finally, crisis rates lending have Yields to on Unlike the resulting the and the standards rates have maintained positions, liquidity and the and or

As quote a be recently a venture property Fannie interest of to received avoid loan joint for distress sufficient these example, the a with X-year X.XX%. a fixed we will rate Mae on in an believe factors widespread apartment space. We

cap cap a as are rate reflect Generally potential buyers that a Unlike change speaking, pandemic. private of the seek REIT sticky, terms property. the meaning don’t performance market in result to in immediately events values of reaction but of to a many rates rather financial stocks, they longer-term higher are seeking generally

However, of provide apartment to refinance exceptionally improve positive the have cash low take advantage no owners and generally through leverage. to record-low distress, interest flow rates opportunity

buyer As these buyer price resulting outperformance. and with on would higher, environment. for our probably points, Essex. XX resulted near this disruption around long-term record be XX between factors, apartment resources aggressive is of our we of to thoughtfully Historically, in expectations the a seller these confident has widened likely in the to and have them we result separating and basis of gap the periods stock I transactions was spread team, opportunities, act in fewer have If that strategy consistent the in an am term. track great opportunity

over call will John And now Burkart. to I the turn

Mike’s to associates are to Thank like I in housing. start sentiment hard echoing service working you, best customers business our and recognize our who this of by Mike. provide essential providing would the

the community. Over demonstrations seen of we have spirit throughout past few our weeks, countless the Essex

other of and rapidly the have face those out shown in have protective and residents to and they from more, to even changing obtaining to residents, buying equipment. determination personal each grit proactively in teams compassion need, distributing even our and Our But conditions. working groceries reaching shown

residents a we residents resources residents assist are of Most from efforts you community. children the continue library team a make prospects e-team, communities exceptional crisis. and may our understanding the our for great to as to financial our their changes on to of the well or during productive residents time to looking to our time have are and addition, time, this the as this published In during have of been need for at resources use who big appreciative home simply we during and finding service needed this ways provide in whose of assistance to school website thank they our created

this truly together. all in are We

quarter in first were our prior the X.X% to results, line with we results XXXX revenue over Turning expectations. growth quarter. The achieved our year’s

post-COVID is I activity. the this shelter-in-place orders, more in everyone call, metrics begin specific focusing will and recent the market move events April on recent I on comments therefore general to with I be is Although will and interested markets. believe QX

of and expectations of the both orderly impacting my assumptions unprecedented, reduction the economy generally future such numerous shelter-in-place new demand, a is and an market entering of numerous, conditions future, the with variables situation market commentary orders this the relies in As as relaxation in a supply supply restart the way. positive on the and on key near

price the were transactions stabilized April disrupted. at free certain economic at prior XXXX weeks year’s Rental to the losing X.X% X are declined are rental X.X%, rents Currently, is while bid/ask X rent, period. the gap occurring for is a other same-store up in to between compared rental occupancy properties year-over-year financial occupancy. while the market. transactions market properties, properties There disproportionately offering approximately

our outlying of the the market X weeks where to market Historically, leasing demand, located. I months. the people from free and We move enter back to in I during as periods moving to are core out the incentives, currently will our we June requirements in play leasing reduced areas includes pricing the coming various to portfolio same rent. advantage the expect summer taking equilibrium expect which of is the and offering relaxed portfolio are shelter-in-place dynamics has from benefited season. lower areas X

of at portfolio week time. in and first that leasing Looking have post each shelter-in-place, since bottomed April week operations applications the our increased

related occupancy X.X% same-store half from of dramatically. April breaks. decline have Roughly This leasing velocity. March. occupancy in last in reduced week, Our we was was The decreased financial seen to due remainder COVID-XX-related lease increase to activity the

prior and XX% shock the over Our The to is the appears our tours to increased moving market over, XX%, average. be increased initial now period X-week and equilibrium. applications

on will April Now of basis XXXX. we our X% to a cash quarter total basis to first full in delinquencies, in portfolio points the for was turn compared April XX delinquencies

immediately situations, crisis team apparent and became this them we on them identifying our more firm residents financial response a to ground. in magnitude understanding As resources to back engage acted in form with of partnering March, them with to the for get resident to their

representing online assistance. in of XX% S-XX, noted those financially request our of form X,XXX portfolio, impacted rent April had As April, and paid they tenants, residents confirming in total requesting X.X% been approximately that completed COVID-XX in our by full. their

rent their XX% to pay of Another XX% were XX% and a payment made rent. partial averaging about their April unable

Residents relates and residents are have delinquent, and delinquency. company life the which retail representing potentially portfolio in impacted they beverage points healthcare, to massage the basis industry; X% personal and our contact out requested in and residents to move move unable Of and to construction each with financially avoid business services, services. beautician of future and XX% the them. XX food X.X% we each immediately, and been enabling allowed, professional we in residents were services; the to COVID-XX, X% which fitness, were our who or stated by transportation, their to forward of

attempting those it delinquency impacted properties than of were disproportionate payments. to randomly as impacted highly and/or the compete with market at the aggressively dislocation. located delinquency as level some in occupancy. is who root increase partial new the are selected to to However, buildings within at had new virtual Certain a have offering market be ones would respect believe concessions. compare of the Interestingly, aggressively this impact the are property cause world sales lease-ups I large likely fairly to I substantially struggling to the others. more them variations. well occupancy Owners this made

has Mike as financial we have expenses, to mentioned, guidance. On withdrawn our

be expense mandates. usage will higher to related considerations. I Utility and to However, the expenses note want shelter-in-place due some

protective as to personal new and well In equipment cost increase due addition, expenses cleaning as ongoing significant related labor a cleaning in to protocols. we increased expect supplies related

protect stopped performing to employees we orders Finally, non-emergency in and occupied work our units. residents, have

to resources issues. We many have of their other own them provided and fix residents with self-help videos help

change. as However, we work there pent-up will expect level some of conditions that orders be

this related strategy to well we and rapid vision on operating Moving executing into in new this have positioned that technology been our environment, us operating strategy going change. our

lead video requires enabled social smooth the related as distancing The We working rapidly Our completing implementation the orders cloud-first presence, made a tours of our the months stay-at-home shaving information other as similar while for to maintenance rapidly strategy X system digital original and of transformation, sales rollout our environment on app to fully X.X were remained implemented. We digital relatively as tours. new technology-enabled accelerate mobile decision operating initiatives, early other several XX including X.X, management a and tours, solid transitioning smartphones operational from transition self-help FaceTime to the home. our maps, well videos and off plans.

positioned we As well for new the restrictions relaxed, environment. are are this

forward market maximizing strategy occupancy going and operating balance will Our rents, revenue.

operate a will we at years. the We occupancy likely past have lower than several over

unit We technology will explaining by where particular virtual continue various is and using either the on a and on is platform site of associate and to live combination of and our tours answering is social sales amenity. consistent protocols benefits site touring live associate and with leverage prospect the the video our questions operate features sales or and a phone, via distancing resident the tours,

digital for we agents lock and access be site we enable smart units the certain, well eliminating weeks this provide for emerging very the are are self-tours, for challenge us stronger vacant prepared to to These on future. entry but provide were challenging to from need thus Our to systems for access.

same-store the in in in basis April, X.X%, same-store period. market, XX markets, were to in markets, XXXX year-over-year our financial declined In portfolio X.X%, delinquency lowest up Delinquency economic occupancy was year’s the lower. technology-driven compared same-store were Seattle prior to the April Seattle Turning northern our the our points portfolio. rents while

economic up were were same basis the Area same-store the XX Bay Area, period XXXX occupancy financial for Moving Bay year-over-year to April declined the X.X%. while points, rents Delinquencies in California, Northern in X.X%.

as Our of Clara our Contra Area since delinquency Bay and had Mateo March, submarket at Park Alameda, in market, as marketplace. Station was at late Costa were and and X.X%, which rest County had result the Folsom, respectively. the challenges very the well XXX Midtown, activity of Santa lowest reduced the X%, both demand X.X% while lease-ups, the Consistent Mylo County Patina Green, X.X%, little San construction the X with

California overall at was Southern delinquency delinquency Southern Orange were was had same-store in L.A. San April higher X.X%. Ventura South, delinquency XXXX, year-over-year period, was at occupancy X.X%, and and rents County financial same California Continuing delinquency X.X% declined portfolio our while Diego In X.X%, region County in economic a the X.X%. up X.X% and our X.X%. respectively. same-store

hardest-hit XX.X%, Woodland at and respectively. and Hills CBD L.A. Our submarkets were the XX.X%

portfolio’s physical occupancy of XX.X%, XX was As is our our X.X%. April availability same-store out and XX, days

Angela Thank you. And I will now turn the call over to our Kleiman. CFO,

quarter update John. the you, on and I X.X% of results our core last sheet. midpoint first to quarter funding our and of and start year Thank first then balance with X.X% strong per provide had the NOI a compared an growth to our growth on will FFO by guidance same-property exceeding the achieving We briefly plans comment the a share same $X.XX year. period

of our by liquidity April the the additional providing Page pandemic. as have we our result enhanced a Subsequently, As disclosure we withdrawn uncertainty on data guidance by unprecedented more COVID noted have operations on release, and earnings in our S-XX. XXXX details caused

first our million. which on development thereafter, occur during XXXX plan at and months to to committed expected our yield our S-XX. minimis of Turning of start towards needs $XX Page means about funding an needs XXXX and investments period XX million is is for XX% Similarly, we million. over of X around for our commitment buybacks only represents also investments is for funding shown finance funding This dividends, a XX.X%. $XX total about de funding these quarter, of The September stock for investments, to capital at $XXX structure the average development

the current the XX% year. of lease-up expected within approximately to pipeline development complete fact, is next In

our ago costs growth, the We have Hence, construction reducing rent consistent calls. yields. is discussed several a increased previous development we compressing to begun have greater at direct with years the exposure because than plan on ultimately rate of pace this

receive noted our sources, fund Since $XX million cash to which the with a funding be finance needs to to $XXX from will can flow million $XXX buyback. of $XXX of expect earlier match-funded allocated stock million million operations. and remaining to our can million stock, have be repurchased of from allocated we $XXX repayments, we on Moving structured total be investment

quarter, dividends As the represents first raised dividends, increase. the X.X%, consecutive for the annual during which we our dividend by XXth

free this covered, financial well XXXX which remains of and by though and covered in proud record, remains maturities no very the track debt plan may than our With in a cash are We in this the achieved. flow. companies liquidity, strong few year, operations Even have flow funding dividend over from secure Essex position. commitments $X billion be cash lower original for

you. the call back turn now And will operator. I to Thank the

Instructions] proceed you. with question first Our with Please Nicholas your Thank Joseph [Operator Citi. comes question. from

of your if Thanks. execute to Mike, isn’t you market external the would it transaction you would on like acquisition market, or where repurchasing increased growth you good shares leverage? your you an cost and that near-term mentioned but either the opportunities, equity be, see

Thanks appreciate for the Nick. question. I Hi, it.

pursue time, unknowns itself. point in other nature of terms this I more because won’t I we than time at leverage-neutral we of how think out opportunities, that in point would time, at greater given property types knowns this we sell would in point see we but stay this to investment there Not at there say to the say clarity the of until types. in to are this pandemic like incredible approach order in our given uncertainty, different more unprecedented

for to remain foreseeable fairly future. And so conservative are going we comes to the it when leverage

you are properties maybe that seeing in on you stabilized on markets? on seeing different some the concessions are of you what the Thanks. concessions just then today sort mentioned And properties, operations, lease-up

we just is common going looking is we level because the are we weeks at transactions that. rental John. far the what to the X I’m some assuming The just of as is rents on there. are reflects as that X are Where and asking getting occurring what are a is where necessarily asking stabilized dislocation are second, rent, reflect And out back seeing that that’s properties I the are seeing to simply there at. for It mentioned transactions. where actual comment concessions seeing doesn’t This Sure. lease-up pretty going

impact that’s step, move a hitting from stabilized back I lease-ups and As that, delinquencies by others, not and again, creating caused a the properties relates of we kind to dislocation many of see some really the the what certain out market, as that of there.

will the future. think that I near abate in

to from move closer we going As there no whole and X the shorter lease-ups weeks Does are on. a concessions specials weeks and Again, to market that X that the the expanded to out concessions are the stabilized, board. lease-ups, to product your just kind on new of lease-up basically on on and are some X months, other across X concessions stabilized question? answer

That Yes. helpful. was very you. Thank

question. with Austin Capital comes Our next question from proceed Please KeyBanc Markets. Wurschmidt with your

are benefits Hi, good your slow that’s you markets, out the and rollout the married curious late? some I the with morning of there. unemployment tenant of your the made across regarding activism collections then of on thoughts balancing what said with comment headlines that am also

The is focus working reality don’t out thing. event have do really trying are I that some really all an to impacted that the few take bad the am Yes, their control, we What are actors. seeing start it lot on I are that. I were want hard. amazing by of will going people a seeing, great we right good figure and of potential outside situations to to we a people and with

are seeing a we orderly rent the the of expect a some Our this resident out, behavior people, from them majority challenged, paid those rent. as of will haven’t then expectation economic acknowledge as And might some the orderly mentioned, even actually the them levels somewhat they connected I but engaged But whole government be that shelter-in-place can. by is those with again, probably requirements with. people. bit people that some shell-shocked They situation. we rolls do payments and much some really response team of are My there of have little good we as and is relaxation as I people make of improvement. assistance just

And back we’re people being And undersupply. to benefit end in may markets But we pay pay work, out. able see those they to go up expect from for to can’t chronic starting to rent, moving this again, that that so rent. our

X is our the time, areas always months, level so occupancy people and And start there we supporting into outside have from seen moving the what we’ve markets rents. X some is of shock, some takes therefore, X, past and in it a whenever to and to

today, on I want see goes, optimistic somewhat I of right So candid we are to a but little a very view bit I as how where that – have dislocation again, to be is now. this going there

of likelihood in? That’s benefits helpful. you roll unpaid is or some you some that What time delinquent do those rent as think the collect over that of

Mike, than this falls actually is unknowns Hi is Honestly, more Austin. in that We we have we don’t of didn’t guidance. give bucket why knowns, the know. which

the key cash And to around on points is this we think present somewhere accounting of We have assume. not it does one just as And of issue. basis. historically, said, Effectively, it John basis delinquency. issues a out treat XX we an I XX there.

more because have the it the to to happened, all those further better this that of X difficult bit experience get from date, a the know, move-out our is over that’s it’s information. historically, of And much just and issues different And And the months collect. we you time. when so We timing fortunately, work now. little through pretty have away

are we many eviction quickly to that. motivated move pretty governmental these other of of and prohibitions us actions prevent and from so which doing And course,

we them here, is of to time a likely we’re when, lot choices. hey, are because we these to a and bit let we more turnover, that to move out, prohibitions, think going of have have are going but And to eviction important that unit control will means comes again, someone at said which his remarks, out of don’t I lease, their a little which the says, us prepared so John if as I in going

that. issues this have with all with, So through think, I we we’re one scenario. deal the of working more challenging that to whole It’s, complicated respect to

helpful. And over equity curious of there how know and still you to kind guys this want you types of coming I a you weighing ground-up That’s of out I you of development. this think be opportunistic into had uncertainty, leading preferred how investments? lot as am is those but are about

this Yes, Mike. investment. is he too may is the we here equity to but Adam add And yes, preferred like so still something, want

not at in in are beginning We the to are time they first loss those piece. come that construction. Again, we in point transactions the

costs cetera. place, So is are in financing known, et

So great somewhere which we rate ratio, those cap a in low And means the cap our of at in X the to is underwrite of deal are taking upfront. not were X the and to high around loan-to-value risk effective course typically, XX% somewhere mid-Xs. they rate deals

going chances versus the forward, that. policy distress unlikely. And will over direct at of I I handle having equity, So, let terms that – of going preferred investment think in level Adam is incredibly

little capital deals. said, Mike And and we’re diligence deals, we’ve over continued last rates what we additional equity number a aggressively due echo pref cost the conservatively, so. or pref underwritten continue of the our To to to increased throughout the identify equity this on month Yes. process We’ve happened of deals of a has with in side interest pursue commensurately more that’s crisis. on

costs us come will and construction. to toward is There we continue forward, track Going that decreased with out back there monitor. expectation definitely are there will deals and some development

there our any of number finger the pulse seen it of now. a out far, haven’t we We so and right deals have pref equity with on

their So haven’t very seen very, a in hesitant pricing, decrease expectations. sellers decrease to and pricing are

continue take said development on to little think So pause, a side. aggressively pursue the I that will but I like we world

Thank you. very All helpful.

comes next Nick question Scotiabank. your question. with with Yulico from Our proceed Please

portfolio Can Hi, new in which a I on run a want wondering also year. you gave, forecast on rates? decline the sort the short in to half for your ask of bigger back and being everyone. in manifest would assume could And for of is rents X% lease terms any about you just first rent impact that feel market us market am rates be fast if in helpful? I I year, down guess how that give some could recovery just in you the than be a of basis perspective there this the

This on one as am Nick. Yes, Burkart Mr. an this sure and well. I has is Mike opinion

a So people you here the different to that is other apartment, of I and anecdotally, think lots to afford system. shock And things. have can’t places moving what their potentially

there’s into areas will the be locations closer out. that but is So The this recovery. from system. to and the shock takes people backfilling to almost And further-out are to then time, that jobs, recovery always then from a benefit over that time the play we

a in and presumes, drop-off market up pretty X% in QX, this last assumes So on are we rents. since S-XX, were it quarter now we at dramatic X.X%, minus

ratably units turn We throughout units. the turn don’t year. we course, Of

of because part we have a a little anyway, the period, challenging side markets. still apartments for that, more more is we us so fourth what’s seasonal of the on think quarter the demand enter deliveries into traditionally I bit the

quarter, And then that recovers and going fourth think it from the be we we it will think pretty on. point into choppy so

point would about other is So make stabilized the comment concessions. I John’s

growth stabilized with throw remind you a are them is. demand what get. factors, rents, concessions but of actually, still move-outs, that is When our with bunch which don’t this factors. this markets, to think we The what regulation model demand has And supply of regulation, in for the is our we macro various on There assumed into the we challenging continue Again, to more effectively supply and happens of factors, that. delinquency don’t I what we on collection happens see. based plenty been this. a that. move-ins of these unknowns We whole subject. Page there to forecast what top think policy issues, will know another in be This is everyone there can’t economic what’s again, cadence scenario going on the to S-XX. predict happen just is And of

because large guidance embedded it is we this why S-XX to we is without that of didn’t And that’s push enough to there that give giving sense further. there make very another data level think in So decided assumptions S-XX a it assumptions. whole on just

just the basis helpful, and second been in you facing any us supply then that markets, are Is Thanks. of year. in some if projects that’s this that And that Oakland real-time tell two that then in those mentioned your and worse the sense And it is if Okay, Mike. in Is also, maybe biggest norm lease-up, quarter, terms quarter earlier. third delivering deliveries just projects are you that? of the terms a have San I what markets now it of we these Jose mean look, is timing? delayed of in of supply you than months could seeing for X are are

– momentum. And on has it supply then, you I also to California it’s little be which California But is percent again, can than But higher Northern would that. Northern at more the worse X.X% of portfolio. total total for a X.X%. at stock, Yes, focus the supply, bit is

hasn’t bit been has haven’t for because part, affected think are are that believe I have. models business been their not winner And the markets a venture little most tech and the it jobs they capital that we affected, here. pretty COVID-XX-resistant

technology companies, strong. Although look at, bit, top the very for but XX openings are down little we still when example, they’re a job

continue And obviously, part here, is and Coast view of investment. path tech on West leading markets. the we’ll of been the that’s our key our a markets do So the that better

because the California, would guess less given saying a have the Probably, have. Southern that we I’m strength have even least the companies of Seattle supply concern, job about markets be doesn’t supply, it’s to Northern be concerned I it the it California and amount job what is California overall of strength, the appears I So drivers and here. Northern the if in though

you. thank Okay,

Thanks.

next Our question Neil Securities. comes with proceed from Capital with your question. One Malkin Please

haven’t called not Hi, go in to X% just delinquency believe I Austin up. wanted paid. to kind or X% to the of of of brought that to by but is I total the question – you’ve who – everyone. your is affected rent back go people I are the out back wanted COVID supplement,

any guess to could the through like guess if that interest see I moral on people out, can environment Mike, guess, for rent that about. of that’s elevated at anytime about how time? we all, seems you hazard. continue a no how normalizing? market evictions basically see legislature period playing what moral be unemployment are of you worse have pushing when the just strikes. talking markets have So walk and as get Obviously, an soon. maybe longer concerned I kind of much more would through the interested And you I I in, color the hazard eviction, It most the judges you’re

Yes. And in talking It’s which good delinquent X.X% not a question. I April on requesting percentage of units you’re the assistance. about, is the believe S-XX,

I I are from. which think I that evictions, So process overwhelmed situation, of the advantage cetera. haven’t that, there’s But we guess for those whatever that notices. ignore courts heard laws just et their really And is and think reluctance most just that of components. that the the is that hazard take people to are people the various There and/or, reason, is there category the piece want another X moral of component, of to

think because talking we that Board, our we bit I my exactly gave early I the that’s breaks to were larger know of to from guess, number down. delinquents. tell not a a huge scheme in of much a them perspective, how I range So it’s still little when things

late your going is to hammer fees of point, people have I time might period, it They etcetera, difficult be relates that to those mind there’s of more that still to some still in oh, it. And better to to so there to than not this given of people, help I’m as is to differently, that a have approach we overall a bit our if part program effort. they we and was will no say, residents rent. Keep period thought. I in credit issue, going to what pursue And owe pay so of just think fully a the our that, to it you’re pay money. the we actual rent. reason intend there for magnitude the And that And through try still collection just experience maybe concerned as give evictions,

we we’re – but can. so it to collect And still push to where going hard

one happen not within falls and we’re with of this category. what’s So that going the unknowns, sure to exactly

X.X%. only it’s Fortunately,

that I just haven’t people But we some comments, are paid said me Yes. of my mentioned In that also Mike, partial let with. add. I those the actually spoken have them payments.

So say moral and to they’re be a clear, hazard. you I’ll give that example. can’t an group at look you that

see for the and were out we They reviews what residents and have got with challenged early – they interacting we The but found was Essex many how have we people, them at they amazing, just that doing. they that public. challenge for upset this we with somewhat were on, is They things realizing so identified were in may we us that the the shell-shocked. whatever really to with wrote just past. had is people the we to reached check feedback that reason, was weren’t been did many of One

saying, back week. so And we were had call people me wow, that next

with lot think and a they’re And I through were everything, then connecting of went people from other work of to some and their this how people. so back others were it. units disconnected trying kind working, people into just they were maybe just impacted And and just

the I I of behavior some So I being of good be as overall. don’t reflective associate come seeing there there. hazard. will and we’re out recognize along, people moral that X.X% But may think

amazing stories. hearing We’re

hazard. that with moral associate wouldn’t I So

I Alright. detail. Yes. appreciate the

that program, tech. one markets. of Another terms visa your to goes goes I is, of into of have know the that know a in a H-XB I lot lot I

you venture now that sort going in sense what as summer. a on And that if these occupancy I or have just two like then like lost? the I any the assume as demand side had looks had of the that? sort you just so into Is well, And be guess, capital Coast will West to that questions demand drivers. to of specific I’m wondering the

Yes, again. Mike this Yes. is

doing, the to of therefore, a time lot terms there’s the Anecdotally, for know possibility other they actually in given will they the then And we don’t go a of H-XBs, what that spent displaced, extent on all haven’t not We they’re things that on. qualify they’re heard that we maybe unemployment. – generally have working home. we’re

tell out just that’s I’m part sorry, it’s time. it’s hard second there. I the to at this of But missed so And And point your – in too question.

Yes, sure.

Sorry. I was just you asking alluded it. capital, about to had venture

you. capital. yes. venture Thank Yes, Yes,

So first big so that about The quarter markets, quarter did. last period, above billion yes. quarter substantially last was funding $XX the venture did. our dot-com $XX Yes, I in – are in was XXXX No, by it Again, anecdotally, a valuations venture billion strong number. capital, I I era. by versus still the still pretty still strong. hearing dot-com remains capital we’re mean, dropping

through We we on when a there of or capital-funded go notices also layoffs, notices companies are that the – list. that WARN venture are lot the of

kind So at trying when how of attractive. to out valuations figure really a are not continue to operations time

valuations to and result lot in we’re some pretty that fund other knowns So trying and technology I a of consortium the case, in would that as bucket do. out put put I And this seeing of the as together. our world what know, capital multifamily have is of deal to the we venture flow more still a our lower overall. attractive unknowns – than figure REITs owners

actually And in to so to at time good the point in it’s recent past. a an think very investor technology compared be this we time

you, the guys. appreciate color. Thank I

you. Thank

proceed Spector Our with your next question. question with Bank Jeff comes America. from of Please

Can missed what apologize. for of Good collection discuss so thanks color. May far, and you’re the seeing? I this, I afternoon you If all

April. is, Yes, when thing falls, can didn’t little the right with on consistent miss April. of it. around They’re is One fifth you move we’re This John. bit, but I would things say a because materially with path

then about in XXXX. in heard in decline X.X%. expectation a for market great. I an opening Mike, believe, remarks, I rents believe his And Okay, Thanks. I talked negative

going you Just Great given you in Recession, was on, I down, what to And saw that that X%-plus. it minus just perspective, you the or But doesn’t it so it’s seem – and Again, me. during correct? that versus minus what’s bad up tech say, – can is X.X%? let’s were it crash know expecting put

S-XX in where actually mind, are an supplement, what think try is Yes, this idea average of in Jeff. published rents the give on for we XXXX. Yes, of to do to keep we market going you

come And X.X%. so we to

X% mind, first growth rent keep rent However, in in the we growth, have quarter. market

think expect, and more would draw we them than I units about you units out, between a are that. actually free, all that’s to back into the rent now we’re because rents. to we we’ve ordinarily for concessions going delinquents if it’s where significant the that do we working have moving substantially somewhere have X.X% And again, pretty stabilized provide of in to those magnitude away think through year, average incentive to that I and expect month a as to created year-end. in people now So decline rents comments and reduction some to And again, John’s give to have go we pretty we we’re market and to more

point. mostly John I too, the in the and for the environment that’s think probably things that in sense? equilibrium think that probably then from And rest end then of some we I Does will so the be hit toward then of points And point time, can make of the this form we year. think But out the recover say, a concession. I at would year, that

compare – or minus let’s Great the crash the say, you X.X% year for Yes. happened the to, during And can Recession? that what tech

XX% market couple the overall, Well, crisis about years. Yes. in of rents declined over financial a

have numbers. terms in actually have leases realize place. – of In mind, it over that I actually we in keep realize these but because And don’t we or time

X.X%. the XXXX, reported was and in was X.X%, revenue So XXXX drop

X.X% on in – dropped in market So reduction X.X% same-property XXXX, revenue an X.X% in we overall, XX% about XXXX, had rents.

leases help? as that can tell, mean the to than less numbers. given are place rent Does compared I you so numbers market And in dramatically pretty reported the

I It’s And helpful. Yes. well. wish Thank everyone very you.

Thank you.

Thank you.

You too Jeff.

question. Capital Kim next proceed question with John with Markets. your from BMO comes Our Please

activity, the applications Thanks. occupancy think you increased that in already Good the past in Do increased that XXX interested has compare the weeks troughed tours during commentary basis with was morning. how occupancy year-over-year? the with trying about and compare and those and the I that points to that basically lost metrics April. of was do X

Yes.

week activity it related versus the gave I and commentary that it – first the troughed troughed, was April last of week substantially. believe So average, April in I the the definitely up and the to that

Our applications were up over XX%.

activity. saw we of a lot market So

are good what So, seeing equilibrium. the is we is going forward, toward market outlook moving very

We People concessions. right in are some units. a going good of level Things the That’s thing. are direction. offering are renting

definitely we’re It’s a we’re you tours virtual to now. ago. it We when say, virtual had year an look lower. up tours, to As year-over-year little infinite compare right relates at, no activity, on because harder a amount tours

a compare April I where so you’re it’s And away first those of was week, the then trying numbers, which and gave That’s trough, week the are last challenging. little to why we in comparison. when this

comparisons, leasing continuing this good than ago we market and with see was would in it definitely, exact activity. good April, be We’re call for year it misleading. was traffic, shell-shocked, but less But given was overall, April to a it what the it

Okay.

and good points also a if the That’s could XXX was between is I occupancy leading wondering physical basically So clarify the S-XX? basis you I’m... activity indicator. on financial and difference

or the not in whether at period, so unit at our for month someone period not compared – the the whereas physical is of the to point our in occupancy scheduled and whatever simply occupancy is, full one just time. the Financial relates Yes. is they’re rent, or to occupied, units whether looking

to do our month, we transparency, So, we give XX, were doing the we’re would our people, reason full will different. out have up occupancy continue of pick up a whole would that whereas good a picked were give on month. financial which we have day, bit expect to April did say, was to for with the lower occupancy as again, up. physical up April consistent saying. we occupancy so is little I trying quoted you though that The expect. we than our – because for and things where to what We end is been understanding ended where what that of I’m It’s

it to week, about being low that weeks When picks to going and relate several at with point. the low low in in sudden, up. was our it probably the a later being all first think you that’s occupancy think then I traffic typically of the

expected I to So it which occupancy forward, working is as continue right is going will our thing up this pick consistently. whole now. out expect And

the occupancy are, So is physical leading mean, a that and to tours the both? for then it an the applications for indicator I say indicator financial, and is fair

Yes.

thank Okay, you.

Sure.

You welcome.

proceed with with Our next question comes Please from Sandler. Goldfarb Piper question. your Alexander

the good And apologize for I Hey, morning. background noise.

questions. So a few

First can’t tenants their wait do aftermath. the of two bold pretty own home let photos I all, repairs. questions. I think see you guys to are to of But the

your been far talked missed dynamic? can guys it, just down, seeing different Northern you’re – just you especially as etcetera, about some exposure, on Mike, the urban versus sort you you – down just collections, but And urban L.A. how you of rent have markets, sold as play suburb’s weakest the out Seattle’s collection. your first, So that rent us and strongest, selling maybe suburban? curious can just I so Can the portfolio between you you’ve that give color

that patch Sure, Alex. residents to drywall yes, for question. sure. job Good the And don’t do want see I our

– The see. I Let’s think...

to... I’ll Yes, mean I delinquency. their talk I Yes. talk can about

start? Why don’t Yes. you just

rent. versus the of – aren’t seeing I to off, really low-rise But high-rise delinquency, some the we The are as high-service shop, so Alex, might replacing first light delinquency, bulb. as we self-help a anyway, be the the a literally of mentioned,

more the as that impacted – by going was logic, to could We’re is highly not a assets at understand when to that. one seeing dug you deep occurred, When or a it the see that, next perhaps an others. that’s impacted look on. you asset were I mall than into And and like what school, could I correlations certain what relates weren’t submarkets. the mall, is But next situations, submarket a distinction, did results up XX then really why a same. assets had or that fact other and there that’s the school, I tried was by brought interesting unique. find, when similar though, apply highly was impacted that what And I a It I that to and to away, to miles the

impacted. to the Woodland Hills that was why L.A. specifically brought Woodland and Downtown And was entertainment exposure that’s as one so the industry. highly has I And up Hills

So see impacts. of did we those types

less have also thing, lot And really the the type in was of garden-style in many there, more Area, a course, the are impact. And We we impacts, and we Pacific Bay greater regional them Northwest. on had in saw low in of impact. assets South, middle the the of then Eastside, that of and

Disneyland Some of it was effect. the

pick up me let Alex, that. And Yes. on

Downtown more in buildings QX Hope the of I And Downtown motivated the before, be by say, as quickly year downtown one the & San sold quickly would some some recall, one that was for in than have of expectation cleaned transition and we and areas our yes, they most L.A. Xth did. downtown. of Francisco, issues more the some year last to you’ll MaSo, the grittiness the up in and in and So of sold of

pretty has of So hasn’t some great those factors. issue I It on okay been a the it’s think the downtowns. significant that, that of – to be continues been our here And West in Coast. because performance been

want that, become say to I in you can far – And with near And so our too different urban jobs to have say, suburban outperformed I job the property has that other would the major on nodes. outcomes. quality I realize the areas here Coast. own A B- in And from suburban markets, in the, generally we West we and again, never would more area, over time.

question seems of sort want speaking country, hit York, jobs in geographically, even politicians going hard. and much of COVID sense second who we’ve than get impact to including that Area, been there’s a really back the quicker then the of been an to And the really has the to their Okay. like out rest people is in here, the it to But New want. less Bay much that of folks obviously,

take view, mass pent-up the in than just COVID may you your markets? it think jobs, is that just and think ready to people sense transit guys far you they to because So back this for and your don’t there’s will that in longer even reopen you are have get people level because do less do demand their quicker or ready to to where rely rebound of the people on are it

It the category. million-dollar And definitely is I the question. in certainly, it. have I an put this don’t unknown answer to

are think that really services. we incomes the levels high open And that part, and tend earning want most those the here, at for a are things, I restaurants have point in to this of people consume out high-income time. to the services services, not variety and

and I So said think some I up go issues concerned Having things with there again. of think that are about along say, capacity start governmental to surge that a opening it. incredibly, conservative motivation other that, is there entities – and the the let’s

to one a predict what’s at So with it can’t agree take day I there. going time But and you. totally exactly we’re

think there. that pretty the and I intense is is out building demand for services

but tough to And on things. We’ve news L.A. beaches. the get want people so that’s seen hopefully, terms the things motivates. different this about and various closing of do that in Boy, a out go one, because

can but I pressure feel definitely happen, to going what’s you tell building. the exactly can’t I So

you. Thank

Our next proceed Rich Morgan question Please comes from Hill Stanley. question. with with your

to and X% understand, just put And job looking you Stanley X.X% deep suggests in the maybe of maybe Hey, to more which for you think it you’re XQ. a deeper think a trough specific year? give expecting it walk But about and wanted be the the projecting, to But for XQ to but to if to is I’m going And the you lot together is then that. stable trying cadence if guys. to I reason I course negative way, easy it – that you’re a I for forecast. negative of of trying I your the guide. think just which by over Morgan was is I little that maybe a us think thank understand, be see sure delayed you the forecast is going bit that. growth are question think severe on rebound. people to through much a follow-up I macro out I’m Or not a And the not now. ‘XX one certainly asked but right I’m of things could down not the the than it’s more very quicker as year, was

that? So color helpful. That on be could any would really provide you

West wide and Yes, do is job Mike. the or of don’t through relates again, estimates, the And we We And minus of of dispersion XXX,XXX, forecast as to going think some think this happen. Coast fundamental And forecast Rich. triangulated is job as to in I that, macro economy. got a the X.X% GDP research there survey wide the went This we sort any our range. I people what it markets. we loss But is previously. all as

from minus growth if would a that’s we quarter. we never rents? is And try again, X.X% the been minus about plus where again, this jobs of X.X% we’ve in X% because relates from. report in normal and to situation, forecast, don’t add because intended terms situation those our normal so number apartment try had that had value. don’t We We X.X% to rents came that’s don’t that have add rent take that. consider – has to And – model it happen the just you COVID-XX in you through this job So that the with – forces where would before. came first with what deliveries, achieved we a But and as to happen don’t we a compares facts to what do macro in X.X%. What

back equilibrium, be somewhere to shock X best into the stabilized get equilibrium order you with in this an the embedded which been tell, communities, year. order of second year, the There’s the need the yes, will back for is things month part of the I and the think – months of around view shock equilibrium. We in sort We get one. average the to pain of more X.X% when half on pretty to minus start can right get be I as of So system. ugly John’s system. And extraordinary minus comment to to X, there in X.X%. going X just it’s to to to And free short-term is to

it is doesn’t is various Again, rent it reflect situation. where model put – And COVID-XX when these happens this pieces the our extraordinary and but in that’s modeling. from. a our uniqueness the forecasting of just scenario comes what in. This you So

into would this assumptions different. we it didn’t why follow could set another be into there’s that of up And is So this a again, guidance that. whole go then with and push because

something I X.XX like, more year, in assume to and hopefully, would and sounds asking we end I’m because It the the And Yes, burn X gradually the the you begin getting than of I right ‘XX. next that’s in X-month better question. quarters helpful, free negative recognize inflect a those maybe towards XQ XQ yes. could given assume concessions tough the will now, then that had for severe the noted average than that think you and off

year was does then like start in but So to get might hands it around get bit just progresses? the I better sounds XQ it as trying little what like. my be deeper that to average a look And

gets that seasonality comes it our worse you equation. model, the progressively In have again, Yes. into because,

QX Although which of comes say, the let’s typically going But get we our positive maybe be we seasonality, benefit fourth just so say best negative would and the normally muted. not don’t quarter, the to quarter know. and is in we’re the more will

the and there. then our bottom model in it – runs hit we worse, from way that rebound then sometime and QX So is gets we’ll progressively

I helpful. with thanks but will follow-up that’s any appreciate the Okay, color. questions, And I guys.

Goel question next your & comes from Associates. question. with Please proceed Our Hardik Zelman with

Hey guys.

on for color buying First all back of have the you done the all, Mike, congratulations and great on thank all you stock. work

We’ve guys in job you and thoughts that your I you What about compare last companies – that? well. big said, tech trends a how are labor – to employment in Can contextualize not would startup there the work the you does market about row, really past year? commentary to get like. really tell but employment wanted from downturn what just guys you your that the track on great gotten really Second talked

We can.

– let on here somewhere. a as open up, come given as piece have Washington things there is filled – how And pull that, of get become know what that be back the me is But that other don’t what we many them. of back. kind half slide come it out social I Let’s we of that companies, best – those the jobs tech happens and of to but California open distancing? see immediately, our that with half which and and again, – that’s Will do will big up restaurants guess, the a it we that extent means course, don’t

not the thing think with is of And is We are this that of So part people. respect good right areas. it. lot part want I unknown going a I about to our the to back. consume of pressure there them the are but that – the be have think services, have high-income there’s And again, in people markets to generally now, to better bring we which

the that’s first guess I So statement.

May of companies, have, in an specifically, are market, at as the headquartered total we tracking of X, what’s of with let’s openings happening terms tech which XXXX. all XX top Essex process of In XX,XXX see, our

compares it that XX,XXX. last to was about at March quarter – So of or XX,XXX XX,

the there. the you hit QX in reduction QX, as of ‘XX open of XX% number of in same terms open. in But ‘XX positions, the So go of about terms back level there’s positions number QX been so about time, you if a

it’s all-time that that the though even the off, high quarter. category. I still-strong So we And in off would put achieved last it’s

I that So compelling. still pretty think Does help?

And just as that. a follow-up to

times and something as stronger ‘XX environment are – once a mentioned see have what pricing. it I think is John power the John this few not we equilibrium past as some equilibrium XXXX the And do you is of a way. was or maybe and as that XQ still we pricing Is it cycle? than X% where really times just the economic mentioned helpful, uncertainty. rate unemployment a by in wondering guys few late I inherently is strong

equilibrium, unemployment. has changing there are goes and this goes the the think time are to is of, I Again, Yes. hey, there within markets they’re that category on. shock the people Again, system find an – are as to but extraordinary on been trying

and will brought back work. of be – Some them to

which degree it’s them probably And but for comes our delivery services in given type any when beyond chop maybe the it’s be of or ability a scenario made – but go restaurant that these with period, In Historically, to some half, have about had won’t look and And really of the going job, equilibrium. dot-com financial to great crisis corner. part that talk of whatever, the turn is with in going all periods X/XX X to to on like, when would going have or of it we up what I this certainty you’re just case, predict or say pickup I XX different. the a will example. will that’s for then we’ve capacity it And the maybe – months to negative or kind XX months you of month. think

and have then compressed, And we’re we the now and second so part hitting bottom all we’re been now it’s where hopefully recovering.

to So I something compress whole that. maybe months that X therefore, like would to process, expect or

the helpful. and And you of just I really oblige give stock? me which you if That’s you prices X.XX was reaching one. maybe I bought would back know it. but average a Got to Could here, I range in have the one try? us last

Angela. Hi. This is

trying a you’re think here. to be troublemaker I

we our leave That’s you is. credit So for I’ll as that’s let’s just report. it some and trying. average Yes, give what

Our proceed next question comes Please with Pawlowski Street. with Green question. from John your

issues freeze one of realize flurry own few of now, there I but any in from a for and impact, you de renewals? least beyond examples type where Costa-Hawkins legislative in again, year own your to your anything right by because of landscape, lands their them Is to renewal push minimis Just would with most able all me. your our Costa-Hawkins. won’t a Mike, measure, portfolio at kind evaluate cities at there impact abide the back any cities they has There’s on that your been XX-day power pricing window? radar prohibit of of step violating When there enact the portfolio. a really proactive rent is your later you you be won’t cities and

Well, all well, there out tracked we And John, do, been and pretty of kinds know us guys too. you there. proposals have I

And in have a of cap rent of XXXX, XX. them Fortunately, AB cap not obviously, statewide plus is which moved with most we X California, a forward. imposing have control, of CPI

we’re through environment. that managing So

emergency the one that have thank hear eviction not of the I judicial really, more And concerning, been raised. the adopted, maybe period them, is the essentially that council of aggressive program extending L.A. was state the say then would two a not payment after for going out is is most there’s goodness. cases year. one proposals rent to Fortunately, some

work communicated but as to take And good situation. various think that look through higher with with said, part, as we’re X% laws. maximum And ultimately, aren’t with through of for that So the it. hasn’t a John it, of again, most track most bucket advantage to have these good of is probably, that I that, to news path trying we residents us working we our news the those the chosen their at that being respect us working

the Got for taking it. Thanks question.

you. Thank

comes Please next Wes your question. Capital with Our proceed RBC question from with Markets. Golladay

you Wes, there?

mute I this sorry, function. forgot whole Well,

that. about Sorry

Essex X.X% to job decline, S-XX, CARES model loss? made neutralizing at Act the any the have the adjustments for you rent Looking

what – our the growth, comes put no, job of – have I and this in for macro this the inputs, supply, not. don’t marketplace. we Again, if model and take we is No. it’s straight, those growth, factors is GDP out again,

minimizing hopefully definitely don’t units they Act in there, able to becomes be month, of a benefits it. longer just and time they they if accrue unemployment our And At stay so think balance that pretty just may I I respect least okay. with and the to great S-XX.X. out referring help. pay the can’t being a finance will for So That’s that large a think the a longer rent CARES – that to paying helps Even are that period we that people half damage.

on will think the delinquency it help. help it rent probably more I than will It will So on side side. the

retail exposure? Okay. And already then did you comment about

that. like Retail is portfolio, our to glad really I’m hit part X.X%. small a No. of X%,

Our was they paid the owed. of about tenants retail retail half basically what delinquency

located in sites with things their providers. group of multifamily seen other are handing relatively typically at I’ve the So it line was they’re That industry. in where service roughly retail out

business they So shuts the struggle. when down,

plans. they we them will reopen of also will We’re that work be working and to with up. really hopeful them on able back all with And pretty are payment

seen. we’ve So in seen I’ve – hard, across industry but the and that group was hit really everything that

thank you. Okay

Haendel question comes next Our from St.

Please with Mizuho. Juste proceed with your question.

morning good out there. Hello

morning Good Haendel.

guess the backed the by comments I time right I of you selections afraid going earlier submarket assets. BRE markets guys were when truck a in flashbacks was And lowering capitalize Mike, of your up not or construction to acquired the sizable to transaction financial and had and emerge. broadening your completed the and on your type around So your intrigued deals should you’re on portfolio in newly instrumental price near-completion I Those to opportunities with merge point age the amount great California being lease-up market. recession and

interested you use your or condo of development up willing or in bottom would So of I’m buying from to types portfolio the these be be size. curious it structure I you projects cull perhaps guess to And fund pursue similarly lease-ups would fund to more if in a deals? busted

again, pay financial that people the couldn’t as now to record-high was brand-new being crisis, sector And the at guess nothing there of opportunity even in to had mortgages at buildings XX% script them to leverage. that And comments great the There time. back. is my Yes. this those made you’ll crisis, great questions. financial extraordinary, distress vacant buy positive Haendel, close are great out afford in I replacement. recall, about to you the the created this and between within condo which difference of housing amount the

IRR. X, IRR that terms you’re might deal If that of somewhere zone levered – be leverage, low un-levered XXs, probably IRR Xs positive you say, typical high let’s X.X in the a take to a in in with

going the markets. that, kind distress within that any think So prevent I significant to of is

to manage they’re they guess, more. few Of and leverage at course, there or sure, to are time. to they always in would aggressive for very XX% far up are some and transactions And between, point there that lenders, I our property but find this manage out

leverage-neutral do what our So or in how we sell that transactions, IRR, at always we’re terms of on we thinking higher about our portfolio arbitrage So growth with and our can way. view it What portfolio? let’s within say? transact? a And okay, we can it do or basis? overall basic of rate what’s ability as, a the yield we view replace So

of say balance our pretty is would still of take equity important top than us. to joint also, so our certainly, advantage list. I And which preferred greater I that sort still And the at then, the ventures, extent It’s or sheet, say, would leverage at a bit than higher drops little utilizes begin, leverage time or of ventures but small the a joint when some extent – to and to that beyond we course, that. leverage over on

are discussion because and the mean say didn’t did Adam what this miss? are And it. at those would that to looking I expert things from interested he’s transactions at in. exclude Adam, I I So X we’re

nailed Mike. all, You it

Did that help, Haendel?

did. It question, angle. I appreciate did. want earlier go from an to to a back I different It guess, I that.

contemplated anything evictions and ban for here. being Washington temporary curious hearing on – of on in I’m you’re tenant we’ve the in California terms Just the forgiveness beyond protection that rent hearing bills been if

such As is kind York contemplating a I’m of New bill. sure state you know, forgiveness

it’s I SXXXX. think NY

and government to a And rent. anything just X, idea if you’re even broadly, more work? – concept, it’s So how in that landlords Or forgive I’m that stepping Just the X, as months telling X the there’s would hearing. free of curious work? does

and on curious you’re you’re what So what on maybe hearing that. thinking

cities, West very unlikely. but the that there they’re it’s is Sacramento, And reduce of from necessarily have from this circulated. there. mainly clearly, to the a proposals, city force what rents so out don’t is We a at those to that proposals you’re been bill Coast, lot by there. some and understand And constitutional, been there going California, think position. attorneys circumstances of We them again, that but in to stop that out landlords There respect throughout Well, have think unlikely. give all pretty out in the would legal and We XXX, being it good doesn’t it’s happen. actually discussions we we But will AB the it’s various have are which peril XX%. hear the these to courts certain been with right under things think pointing don’t think

have where legal be not that at a in point And been – think it that time, I those new seems have beyond day. passed. they getting a period to So we’re we’re this appears bills what mandate

kind how to in of We’re think we’re that up. get let’s beyond the open out more period work and of back now, I figure period to and

So perspective, for and bills those I time gone. a timing has that, think from the come

Got thoughts. it. the Appreciate

Thank you

We question-and-answer for call have And the session. turn of Schall to closing the end I to like over comments. Michael reached the would now back

challenging and thanks for you, best with Thank everyone Please and our operator or time. wishes comments. you. to questions call your Yes. Good And joining family Thank you during call the or day. us e-mail today. this any

concludes conference. This today’s

may You lines at time. this disconnect your