Essex Property Trust (ESS) 4 Aug 202020 Q2 Earnings call transcript

Good day and welcome to the Essex Property Trust Second 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.

and have today. Thank for reactions COVID-XX best that our part John joining our affected thank today. call business our wishes presented and you you participating Q&A. to like by all The follow call call, and to those challenges many offer on indeed and our is will from On Kleiman, unprecedented COVID-XX today's comments the Adam Burkart impacted Angela every the of have with pandemic lives. here for We'd me Berry for

in core from ago, results turnaround very an year for from FFO abrupt reflect representing reported conditions cycle. challenges QX economic decline throughout as this favorable unprecedented a Our X.X% these we reported

of priority Our regulatory from the April, pervasive provisions. Proposed job regulations and ensure also our debt. markets. followed spiked related loss safety mandatory of often upon collection to a occupancy related bad forbearance a losses receivables which COVID-XX contain conservative reduced was to Unprecedented collection suddenly quarter. rental rent to steady adopt in lower due in in that July. Ultimately throughout across further orders shutdown by restrictions insignificantly COVID-XX occupancy residents, in thoughtfully recovered to to XX.X% led fully recovery approach leading first was been demand, Delinquencies March shut job anti-eviction us impede ordinances, could especially the that reacting had to shelter-in-place and receiving employees our down orders while hurdles and

of additional residential form delinquency, provide these improvement costs and of the category the in in seen and COVID-XX will totaled quarter. part occupancy each is $XX remarks. the cost and view direct of quarter, their the temporary detail Angela mostly have We as maintenance related During and second commercial million. pandemic lost second John greater

claims improved warn job Fortunately, as April by economy and fewer from quickly its trough measured unemployment notices. resumed the continuing lower growth,

ways virus June to in basis had After the many addition, your markets creating almost by moderated April, job declining businesses safety have found by and In declines points to new to procedures. during nearly year-over-year XX% the protocols adapt Essex by XX.X%. XXX

expect to the half in improvement We gradual continue the of second year.

require their to slowed many it the down work-from-home. employees have These jobs largest an positions tech the are in appears greater and track primary driver wealth is with California about creation many job the in XXXX. Salesforce we return year-over-year companies saw mode level Netflix employees of flexibility, to Apple, XX Bay about of career report healthy maintain flexibility and a are have shelter-in-place and in growth in pace same at while Essex now and leading are Generally, that times in office to We This companies periodic these a a their Alphabet, office tech headquartered remain greater NAREIT to have growth of the companies has Turning and Recently, large acclimate for basis pursue team including pace such to by the in dates, continued the range according from all Coast with of models related had markets, hires West the from on as XX,XXX to Zoom large are Microsoft, to October companies Venture at Washington. July them planning Most have during restrictions, a also needing for our face-to-face approximately Seattle. greater expect third established a a openings technology are recent flow XXXX. at in business the to technology allowing meetings, public since company contact. share. companies to comments most companies, consistent new market. post-COVID Area while dynamics, which at the growth, which data. of to and top our to we Amazon, employees the tech the XXXX whereby open to in resulting of the tech and which capital Many Amazon work-from-home damage era June opportunities, minimal various of benefited all market and

of business rate. However, that on investments mix focused lower that companies cash and we are have models is more directly by COVID-XX understand that have not burn the impacted

diversified more previous a during has California has that periods. recessionary outperformed economy Southern

continued are the and Filming reversing including amid that XXXX lost XX.X% to the Angeles, a for workers loss shoot a and to freelance level Essex creation number which in there jobs, industry jobs production the Metros. in BLS Safeway the trailing services the the businesses. total XX% key jobs We XX% is L.A. pandemic partially and this are June, called of see these in San for of this and is pandemic, losses on jobs greatest a production In prior an the In losses all the wealth the temporary the other limitations was year, San markets greatest Francisco. preliminary the represented our television building Orange key jobs Essex and average service County to of Seattle affected A and will production declined of of recovery basis, downtown of large year and to the June, the at job days These had business While L.A.'s the these Compared outlined months and momentum. past the rate gig each XX.X% in from during the in standstill. Angeles the XX% Los notably implied in XX% the a direction are with declines Diego, optimistic. by locations of film this content demand is the infection organizations Ventura usually above job process generally survey. associated number unabated factor concentrations of throughout contributor challenges, bucket three recent total unemployment by commercials. quarter the although is area, metro activity. ahead have Despite various and about quarter. near-term path across on which reasons explained hospitality counties not has and be the captured declines impacting Film we report came the rate declined content Forward, progress and Los governmental last content the experienced second well screen trend, pandemic, to underperformed. from COVID L.A. joint reported and the of by amid payroll depend that related on as leisure the actors guild year-over-year have

its creation, Given industries its in essential recovery for the COVID-related value digital shutdown is Los of and potential content film and Angeles.

makes recover. jobs to a other services housing create this process. and That service the mandates we important demand as recovery a safety and the contribute operas and Jeopardy City by believe restaurants, systematically Wheel is underway housing, the production bars cities. probably and jobs to in and and ABC. that demand, sets in Fortunately, several recent of TV related areas Culver they soap shows make motion with crowded particularly restart will will and in such for Fortune Wealthy of picture daily slow produced that Necessarily CBS

strong of of we be in the and and of course expected and intertwined made recovery nature mostly other Along have greater Finally, accumulated the the for cases the as economic the be the the and with the direction of pandemic should unpredictable job growth industries to to our better have on In of the expect clarity supplemental recent technology the on of hospitalizations, the hiring pandemic light and pandemic. surge governmental to jobs Page outcomes. of wealth Thus, pandemic and outlook managing are with condition responses decision with we during growth. improves. withdraw in S-XX the resume unspent great pandemic, COVID-XX forecast become the we've the until

period. were to quarter, both under Pricing in of pre-COVID market, represented which discount properties to turning the we two sold the for Jose, apartment contract during small to Finally, quality transaction selling placed compared of supply a in downtown susceptible the life. are both added diminishing downtown locations that Both May. theme more years the few past the a continuing of and of San properties were

even grow to in due expect transaction fewer market through closed sales we employment the few restrictions centers being is The a properties such as travel better to issues portfolio industry apartment forward, near very offer key that marketed. diligence and Generally, experience. challenges. the slow recover with Going and working process, selling major had the living been

near transactions closed how property such reductions July. on smaller apartment traded treating had highly them we it's Both specific the price additional at A the higher under than as properties at NOI view by a early value levels, a a and taken one Given since that, longer of contract for few forward. COVID-XX conclude of long-term transactions, purchase quarter in in properties end, delinquency rather suggesting rate. pre-COVID as too sale. cap the prices dearth have or two valuing adjustment, At buyers closed impacts or of pandemic when going will properties are onset motivated buyers to

we deal Going our have disposition new Diego robust proceeds. San We is equity growth in pipeline. announced fund with forward, development intent to mostly and one preferred a our suburban

is money scarce for searching low estate of be with distress plenty real financing will apartments, before, institutional-grade costs. As extraordinarily given which

market don't will the team, markets of in disruption. performance Unlike offset powerful rather a meaning rates opportunities, immediately of Freddie and found of perceived Mac transition I'll property. market. REIT recover the that, and liquidity we over for remains rates related events, that, generally on And cap of the with the our or terms a in day, incentive will we with substantially term interest because have of to source consistent a track sufficient the positive periods of financial record the for cap value but the performance. that the we thoughtfully to to call believe seek apartment. the Burkart. long-term resulting values and longer now, resources in strategy turn in our risk. to rates Mae these rates Fannie existence lower sticky, prior exceed interest act reflect Yields John I'm they to transaction and are apartments private generally recessions, leverage of add to and end reaction to assures confident As Historically, stocks, change long-term virtually debt At markets greater opportunities provide like force as

Thank Mike. you,

was our and support serve people, this our and of you, proud Thank our of Our how challenging incredibly team residents our through together the safety residents what during E to time. team. I'm accomplished priority and employees. worked period our they this

occupancy challenges on related the we demand the initial XXXX, the existing when an to of at that faced orders Looking reduction in opposed second were quarter stay-at-home exodus to residents. a early as implemented of

increased advantage properties, leading an incentive increase traffic our leasing by another rental incentives offering market of in took in substantially relative of XXX to eight in The strength significant in on relative certain markets enabling May, July, market our asking points stabilized of the in into us June. rates During and we our weeks the add points basis same-store to decrease increase leasing basis lowering and two and our XX our continued to occupancy. strength occupancy in rent,

of the XX was July points time. where XX out year was this at of as it basis availability days last than lower Our end

some new COVID-XX consumer set. the As we environment, to seeing behavioral changes our intuitive that are adapt make customers

of San shut and down. For changed Francisco in since work-from-home example, sports has the current proposition the living the temporarily entertainment venues value practices, restaurant, with have downtown

high being value greater from open access to speed more of corporate increased activities the presume for outdoor a internet having have distance space indoor assets calls, despite demand private Additionally, space offices. suburban for and

as moving noted Coast we've and work turned consultants to original employer. home back for have work-from-home has also their We work-from-anywhere West their into continuing to several that seen

have on this theme, surprised we We believe future a work-from-anywhere by that Zoom the lasting the believe travel. all business Regarding will which reverse adapted ease in trend will permit. to impact experience were positively this we all when conditions same-day and

person of screens dogs recently, the frozen interaction. loss connection Zoom someone cannot the pre-COVID Ventura, personal am heard barking portfolio, March. a the the I in replace Costa, San within value If the occupancies today with say see background, However, same-store I in in from that consumer in so and at higher our work. behavior Contra in Diego done We changes portfolio and at our Orange living comes than

resident our XX% In industry governmental in other strong the regulations which Turning amount. ’XX bodies X.X%. in revenues have the In and page cash total of the nature. XXXX. our These month. points delinquency quarter delinquency our paying basis a past Thankfully, to our contributed to assets positive prior against protection in their revenues to various positively basis as continues eviction. a XX press with quarter X.X%, We same-store on of had residents was is cash X.X% compared compared extend to obligation. down QX prioritize to July delinquency Referring fees was are and due our two of second of continually have the delinquency. XXXX basis, Meaning S-XX, markets appreciate enacted the on temporary the a residents from results along second line portfolio release, the presented declined July, that item delinquencies of for for the month due rental late our On they by prohibitions metros. to and on been headwind year-over-year, to

Moving operating objective on operations this new be on strategy continues revenue. in focused our our environment, to to maximizing

will Given will our the changes our vary market. conditions, current across strategies market as evolve and

For we occupancy example, suburban lower and likely as lower Overall, market occupancy we has run markets, to Ramon. that points, is a XXX targeting remainder at in occupancy portfolio believe highly of downtown urban for year. the San while Francisco fallen such about such as higher will desirable the in occupancies markets San same-store our basis expected run

our in period. expectations, lease with excluding to As noted new our prior leasing supplemental compared on S-XX consistent year’s and were our down the incentives, X.X% July rate,

the learn remain place. due tech the an progress contractors home out initiatives, issue employees fall to to new the policies On the due will depressed work-from-home on how as of fourth moving are since factors in That in our not decline front We in market rates demand. seasonal some they've the rental historical moved continue technology optimize our expect already the we such considerable to said, to make quarter tools. that as in

several have the times For average than are three to example, agent. that we tools leveraging them enable currently leasing productive to that these be two leasing agents more

We are systems maintenance seeing similar progress our well. as with

up people will if on continue emphasis try Our bring be to speed. we to first, to everyone

headcount natural increased and attrition, However, through both increase and compensation performers. that we to the our will expect productivity top our we our lower

is the fundamentally Another on our is change of interact app simple, fully this the seamless target tools our includes roadmap advancement year. in of development sales prospects, for pilot leasing at how app with mobile technology other our mobile will with we end experience. that providing The a and integrated our them with XX/X

offering adds expected fiber in end. now environment complete are is offered great a internet assets, market to our is we XX% of another by Finally, in ultrafast our installation by residents. at we work-from-home for The XX% and our service great and expect that ultrafast year assets to current providers be leading value demand our of asset

decrease X%. occupancy followed markets, side to basis Seattle while down openings revenues was XX July, of In decline in of point our just remained average and was basis was X,XXX an revenues in declined year-over-year basis points by saw down during over job same points this CBD increase period XX Amazon's period. a basis a XX in Turning points XX%. Seattle in year-over-year unemployment period, in In to East greatest the the XX.X%. revenues The basis points the the remained South Washington below in the XX same market the the of with at U.S. QX decline XX about

same decline QX in year-over-year well QX. X.X%. Tennessee were down of hundred by least X.X% below year-over-year revenues San California our with X.X% declined hit respectively San and Northern markets the points period. to in revenues in in declined hardest In a growth second in the market, was in basis year-over-year and US X.X% the the of XX.X. revenues although occupancy Bay decline declined was X.X%, open Francisco our the a L.A. of X.X% Southern market job revenue declined X.X% and Moving declined quarter only Jose Area California revenues QX CBD

higher decline with markets most the markets same L.A. all our L.A. rate X.X% Our with County, been of L.A. X.X% economy has X.X% of the South Orange CBD. impacted and submarket in greatest rate the and leading decline County delinquency In our revenue have period unemployment the out Orange North a other Orange XX.X%, to in than sub year-over-year the of submarket in markets. between X.X% respectively outperformed quarter. declined second an The with

of the same-store same X% QX benefiting Finally, from X% in of in our declined San with the submarket, revenue through order military Oceanside in occupancy is XX%. the physical likely end Diego, the which year-over-year revenues stay-in-place June. period, the grew exception portfolio’s by Currently,

availability days Our And with Kleiman. average and our are Thank is of third rate out we'll X.X% now XX being call you. then, turn to our at sent X.X%. in the renewals Angela out reduction quarter an over CFO,

John. the investments Thank few for sheet. you, comments our start and quarter balance I'll followed with the by on plan an funding update about a

our quarter in growth by primarily is be same release FFO key comments, challenging revenue share. declines property this core property earlier and in decline earnings two per The growth X.X% both noted a As driven in will revenue same factors. in with

new approach reserved property same of X.X%. This which conservative revenue impacted growth bottom details. our we available of approximately press additional Page release, delinquencies, negatively with other took of by First, table against, is information our X at our in XX% a along the a and

X.X%. X% negative the our basis method. property property same growth in reduced revenue from our combine Second, by line we results, rate is same these growth The report both approximately to using compared accounting cash impact straight concessions on which the treatments of to

would negative reconciliation delinquencies our supplemental, new second operating are compared S-XX details without Washington taxes, on available FFO year. On of our operations. quarter property disclosures XX%, this, which table XX% along core growth More FFO the the a per X%, been by of positive driven primarily Page expenses, in with same-store impact additional to the by in to total approximately the per core X.X%. share is increased have expenses for As growth, increased on have prior share

recall, by have controllable with of a in for the in difficult remained rest As year. the our you in generally X% year-over-year XXXX, expenses decreased plan may taxes line in Seattle comparison, resulting

our Turning XXXX we to development finance stock structural buybacks, XXX million and funding expecting investments and to the between pipeline spend plan approximately for are commitments. in

In million million. funding year-to-date, XXX stock addition, to we of bought bringing have total needs XXX back

funding expect structured of three which on million a we leverage-neutral closed have total, sources, for and funds for of of As million. obligations redemptions the this year on XXX funding all covers XXX sale In basis. finance XXX we we assets new million available

million markets, productive to pay Moving CAGR and XX-year was quarter, all onto $XXX million of loan, In very remaining capital pay line in bonds, down second the debt our used the we achieving issued June, for down the term credit. in use XXX finance rate effective X.XX% which was opportunistically to team a a securing XXXX maturities. proceeds

sheet strong to in the our credit, and we X.X as total how X.X of capital six our debt primarily we on will balance line to nothing account questions. operator an Thank for allocation. to net call prior would I our now back related discipline you an on billion net turn been to to the sheet, reported maintain approach Adjusting drawn quarter our was With from remains the have times, Lastly impact our continue for times. the increase to delinquencies, EBITDA delinquency of EBITDA reserve. for liquidity, approximately balance

question of question. instructions] a we'll session. Thank proceed this Spector Bank from your time, Please be first with you. [Operator conducting America. comes At Our Jeff question-and-answer with

the big picture. portfolio comments. a at sorry John, different just be? of some between periodic Can laid some work-from-home remarks on your think and positioned contact and out, guess, you you between John was of the little first may how clarify think that I is for from at the you at office, my least looking thoughts today, initiatives your on the Just I notes confused what Mike I'm

Yes, John. why with that. and This start don't go ahead I is

propositions. what we're positioned I well to people actually seeing think wanting very and is, different we're value

in course, for looking square price assets relates foot, opportunities, space. or locations which more we then have and as great outdoor many have that of lower Internet. going it they're to access So, bit little bit of They're our dollars forward per point and high-speed a recreational a gig to little speed

much said, see is something juices the they they've commute perceived prices. going I buildings, completely is, positioned the together seeing for think XX% companies I strongly So talking dates that's we're that of flowing, to value this we many we realizing suck they October XXXX. up worked going in becoming the point that of permanent. very estate idea And always do cases, people which to pay see all the and and piece competitive really gets fantastic, I you're of another like it, starting of that really lower speak which cut, throughout people want with value one And well can to to through the having the things real we of and of July work, Zoom have get employers tech they're bring the their them lost. and a range it And impressed hard value companies now no fine, of the to kind believe, in that. also defer then of in is, extended someone a in anecdotally. as back was to there's What that. their a this buy from weekend as are to we’re negating time, we're mentioned zone saw XX% being will make But again, moving is to decided reality at back the and with obviously occupying over it

we Mike, moving Does our with very that run do doubt, for we're positioned have the no not well you it? they're answer portfolio. think So, long and there?

Jeff. Yes,

agree more XX% good that had with fact June. things loss ultimately just kind little bit of jobs a what order because I America considering are me I in pretty that, the John And a we've point Let add in of totally think of says. view,

being I is crisis. performance a to big there out with restaurants It in and these West number we'd et then COVID-XX going extraordinary of commented L.A., and bars Coast shut than the Basically, A that so fundamental the script. key pretty couple film And of COVID-XX, not as big problem more bring a So, and kind economy. down tourism of and get down like that's production Francisco finally, are an respect the the tech of the to that's on that jobs are content you probably and there. places. a to that down, your pieces our scripts. producing my those flow tourism various a to difficult And prevention my and are result, and lost financial to are impact just our and how was in go things San other deal. shutdown But to realize is obviously tried available lot And with various in economy shut is content. people the exactly L.A. to and our certainly given services which the I and the cetera. are there all of can't parts orders, get And to

couple in and in the disappointed shut it'll and of then and restaurants So, cases, orders. that take things for days yes, actually are about a In renewed and we're wave the California. second are will recover. marketplace shutdown and certainly again they many bars were down all things demanded And the open these time

has in including where an made that why hour and amounts it difficult services job go versus consume this a a they're, make $XX to between and job, in matter. have on hour. an Wealthy and why incredibly things pretty hinterlands get people bars, living the also wealth. have Generally $XX disruptive been to people so people to that has of type like we speaking, substantial in That's city. restaurants California can areas in working with traction really restaurant that's choice city the you restaurant And making

shut They've a California shutdown incredibly, basis, vigilant extensive been of relationships temporary activities continue been been these down, most to on have and and market basically, the have think very impact. again with and to I these respect let's an places throughout So orders. has say,

that the and easing COVID I of better So, with quickly. see up think relatively open you're going with things to news,

it Please comes from Citi. proceed your next with Joseph with Our question, Nick question.

Michael Cares donations cash led executive started intend X of Nick all about Mike. And million the of says, X do and it? by fund you use all you and It’s to Essex from to Bilerman In is it expect distribute Or press officers, it release, as with part corporate here million that it up you executives? that talked donations? with was to

of it's including set essential that the response the Michael, crisis, a other up needs we there. and No, combination out they money a extraordinary resident And we both. And up at people beginning for and set of team have found needs. example food didn't for

case essentially jobs needs then meals even have great their job. provide – realized in donated that more we broadly, for to and people. have people executive there the And another lost some getting because group money are we that actually, we other that for don't prospects So, have

provide money relocation and services. we an would that so, to of types similar have entity And wanted

Cares order decided that. to we set in the so And Essex entity up do to

evict not into where case, them it's we doing that so It any them. If they on anyway. and better good gets them I and ordinances them we -- those for can in it's move mentioned in relocation provide a good, we place. in our have their So can need situation find And, to life something. benefits,

better probably So, everybody. for it's

to sort a their better this move good an as example good life. that the finding providing think and and people to relates let of it pursue to common I So, their is of situation opportunity the life current

Right.

of corporate donations? initiatives? And to much how so how capital you Essex -- foresee then these contributing and -- cash? So How was $X was going forward much much do that million

Well, I decided don't think exactly. we've

came the not we from a a and came rest rough did. somewhere employee FX, portion a from but pool the that's $XXX,XXX but the that's around what that I number, think is not perfect number,

quarter expense then, there was prospective? Or corporate And the is in X.X an the then? for the cash

that. Michael, let address me

but quarter, the toward quarter. the set we during expenses were entity of end there the So, up the

So, in we're that we during the And expanded. already ground with response the the was created dealing the we seeing entity on there and were when needs what to essentially, quarter what the out happened people. were

people Our resident times they're they're Essex were residents, of XX a response talking of needs again, And to to team consists basket our with -- difficult trying typically. really situations. couple and employees, XX in we and came to up some that

is of those needs respond intended more on basis. this prospective so, And to to a

X.X going included one million last this that's to completely you are you cash? the Is to treat Or How treat you financials? same-store? in you the topic. treat as from on of to going Are revenue? it that? to that are Okay, going the cost even a corporate Essex Are going separate be

let talk that. guru Well, I’ll Angela? financial my

good that’s Michael, a question.

I think being on for. used what depends it's it

example, a a if for be our something for for related, revenue relocate impacting, item. it's or tenants, to contra say, G&A groceries delinquencies, But be that’s it's it revenue So, it'll would if items.

item, And point, see more intention what this G&A But of that so, to we'll the anything. really geography at a it’s where and lands. see that early is means too

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

pretty the dies a phone the call. We're good I midst if in my getting bad morning middle in storm. Hey, guys. this of apologize of

a on well. the lot as might be of think I phone people

maybe and time And XQ, renewal where July. metrics, I'm your back obviously spreads some and in come they as gone valuing at are which negative XX.X a versus occupancy to looking the bit spent a sort than to of at you're that little want I is if about rent lower I the you've quarter. were topic in new growth. even up So, talk But XX.X of think past, you've on

how an a you're at you And wondering, are update you thinking us can if right think to that might give be bad you less about renewal push occupancy new versus when about just rent I'm growth and this leases they occupancy point? now? than So, be position in and

related just John. mentioned, really Well, a as the a in Well, a time. and for this That's hole in is period we started to Mike the of demand question. had again, April great shelter-in-place stopped

so portfolio, vacant as and like, leasing that about XXX traffic big pulled earned not occupancy May unit those discount taking on dramatically enable And fill pretty cases, to to ultimately be and picture of moved March. a or between aggressive June then concession incentives our But San on we we that Contra of we as vacant. advantage markets leasing like a We is, actuality, offering and depends. the of really decision us in made in there's let's in as thing are we And increase positioned decided basis of mentioned some pulled back and gain Ventura, took July, we higher. which points some in my Orange certainly as we've and back up Diego, were those in they bit in proud subsequently So, get and many quite and them suburban actually we're the market-by-market, that's remarks to occupancies to the offer than obviously gained concession and nothing, occupancy it riding markets County, and still I Costa, in higher, well. they're

it say, sitting ourselves and and So, at to the that not ourselves allow to vacant. leading the is be so position market we're thing look best we

a we putting numbers. this less of that only question? units basis, Does that's also challenged thousand clearly a our And unit studios literally why the under are have that I'll the on there, going on market. good stress. moved And of market and are a Francisco than San that action. is some There on. San took San are we're what's type Francisco distressed. understanding Francisco, pretty Right now, your so, so daily definitely more answer and Francisco San but out we're areas that's excessive market a Certainly, bit watching just process spot in our know a are pressure units in our also in little has so XX% about The studios we

But wanted if thinking Yes. and one leases to come little an I I'm And little Yes, might've months a of the maybe bit of an on. does. you to a saw about this think correctly, bit new -- leases this that about back average impact about and of more earlier new concessions, it concessions. were just average two to talked

down So, of effective it the portion Because lot through rents. a about us you to I'm Can about more think just trying what we're net just than be seems suggests. the could it? think walk headline it like, supposed how effective to the

that to thinking make sure So, about correctly. I I'm want

Yes.

mean, you I and up, real I think concession, moving of very of this motivation where certain there's to pure in of lease just similar the it moving. of particular it development would market, someone incent to of So a think then to cost offer And concessions there's move. obviously,

up gain are of not significant market fill we enabled on reflective occupancy. when rents concessions we desire Doing to concessions. a so, necessarily offered It's to amount our us really often the portfolio, lower. And

don't to bit though. I would at our marketplace. now the because were it way. fill So, to we that I in wanted portfolio away backed We from There concessions more up we've a answer to and look are want clear aggressive quite that. around

June that in to saying and the pretty weeks to supplemental, that us a out. at than enable to average less I you're concession weeks Our know bit we was X% But for closer the fill which four that was looking four common. during confessions, little used eight to, average or

So, there serial and financials. and got assets weeks that clearly a We in range. was of footnote the sort concessions at then eight a some were tendency and

it. it. Got Got

clear, compare I'm what be this sorry this And so, just that's to and I'm point. it's names But understand for to across belaboring trying to at hard point. and

Yes.

headline The without right? concession, renewals new and are the

than decision. prevent less out on that the both to the more to comment you into correct. That And customers renewals typically trying ask laws time days them days. out, say a to is certain then, there's make And go The us a our marketplace, clarity. XX in give XX plus renewals sending one little get from throw we're to I'll

the is move what you what market happen the effective. so, And send the when renewal can which becomes and is the out, between time actually it quarter second can in happened

in are which that always at would a that happening rent, have that the we may market been get renewals have that effective in of if had makes leg sense, March, June signed were So, time. point in

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

proved just Thanks you a that building even even guys. July more. you said more, John maybe been it like have know, into bit, And incentives sound little

virtually So, today? have at the to impact June, in markets this you your four us is Or then help us, is eliminated where perspective? mean, two is the concessions of weeks? last point across that weeks quantify give relative I effective occupancy you from rent Can it most or given what an that? And

Sure.

daily San Company part back concessionary by it with Francisco, going Silicon of market. well. high out in and Orange, moved them it And in period So, And pulling Diego, is, weeks. of are Costa. two bucket there, we San to But completely and portfolio a lease here a eliminated a there for weeks not but weeks. you San least four obviously and like and of both and but Mateo, pretty back moves mixed in and depends to Ventura Contra and near similar then can run especially of of we we've where week is a the in of parts time, there's I is we're Valley Silicon and a assets. Other it's tell that back asset markets, the up in as them other around we and literally, Subsequently, continue concessions ups. somewhere markets bag, the eight are as falls certainly it And San concessions that some a is Silicon There Valley we offer Seattle Oakland number that range concessions Downtown Valley, Francisco, to forth.

San So stronger, areas bit little Orange increased where are Francisco. a to are bit more and County the where allow we're Ventura, and opportunity to little a offset that San of some we like going occupancy increase the markets Diego, see that the weaker like

are leases that net you is then could July retain And tenants? quantify using spread to concessions frequently And on year? versus last you what of how helpful. that's No, effect renewal in

with really market much new of our expected out changing upon because so about concessions. and the leases the XX% we're up renewals, really, get what That'll is in But negotiated Yes, dry the without going less, it's I can go any situation. They forward. renewals depending renewable now. with the probably doing the right renewals

we negotiated negotiated August. in and we what less were And in in we less June, June again where in and July so, probably

maybe a them something week for I or the even concessions because than again, renewals. less So, that, have don't most of or mean,

they they trying where to that’s So come because the into we’re intent play because really a not we’re to costs. trying extend it some moving move that's is have of of of some really matter move the

kind And of on. that so exchange there's this goes

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

July. like to A in everyone's in they it improved few response questions And then John hearing sounds your here, since questions, improved. then things have

but a in you're Most Is who think more sounds seeing of your talking markets, good So, in that pressure Mike back we're about about that not It you in or half you're the softening for like the where the assessment? that seeing fair I demand. and of rents you're early half. back talked about not occupancy concerned XQ. like that's occurred rent pushing really positively, repeat a

Mike Alex. might there, risk out a sure I'm start. of some I'll have comments. factors But there's lot

mentioned happen day But there's well, good positives, very thing. market not they won't positioned that factors. this I out. risk that's certainly COVID et yesterday, quarter, in, is didn't things consultants, there moved that is as throw And it going come they than better some move the all out. have is move out all to considered. was insurance earlier and fourth happening, There unusual, usually are some portfolio related already today, about the are the And So they therefore in our before, today feel because is We well, good that a things to factually, cetera. obviously we

university be hour to have a And bumped later, through you there's online cut you you requires right occupancy. then for lab just daughter but to a on this need half a her spot. out to got at longer leasing around of they may site, that down a the went My to because for then, and family my the example, university interesting and an you live tethered positives class that online. still many have and the are us some of colleges, them enable partially period. those very doing some may that So, things going are be And of

now she's apartment. an So,

there. And there. if Mike And so, obviously positive, risk but you that have to flip there's add I'll it the things over that like more are there's out factors

back XXX basis done pretty But and suddenly, specifically this XX.X%. John going said, things Alex mentioned, growth Yes, this. probably I better job moderated points year-over-year John, to in what's job on try declines tie draw you've the the almost enough on, to I in, attention front. have script, didn't And, to my to so

job you of probably things actually, the I would them points lease places than so, of let many we cliff of other off then, and So, really had that of things. and we so from basis these that are would terms in better. lease, out anti-eviction an We a things fell declines, got motivated did got we say, horrible the occupancy April. be. all an the moderated if someone their additional We a anti-eviction backdrop in a extent to given out wanted of And better. ordinances. other my and perspective, XXX their in And had challenge to of And occupancy, sort then variety again, accounted drop, of for results having greater were ordinance,

going therapeutics that on it But certainly, hitting new the again, And or to mankind potentially surge. developments, that's And like we is we would, COVID-XX a point the direction. and right did second script certainly picture. shutdown a need to peak We experience or to say, the hopeful better. certainly relates my I to to continue going it certainly so moderate things whatever, of going And that's vaccine remain -- we forward. get And believe it's intertwined is it is once the be going positive of that as continue the we kind to we're believe this looks with orders. to

about can we but the down, down in in and out the great. that be some Palo streets, restaurants they're Alto, maybe to won't so can the so, tables then do that'll again work open experience move in and can they the the shutting we traditional recently on winter, outdoors, have restaurants and summer partially the was I talking some things. people And a shutting more streets restaurant and other

improvement challenges. So, incremental lot just for people thoughtful of these good there can overcome and sure, a is

expect as that to that whether be progress be. a certainly we when Hopefully take the forward, to take So, big or But we big unclear still makes might would step when forward step I can sense. ongoing. we're the

So, little we're too the direction. faster. progress. going be making We to right but a it seems slow, It's it be in want to

your to discussion. said guys Right, from future, predict point what But you I as the you felt can but today, none reasons pulling Mike, guess the – and back obviously, your properties you guys telling of us are you comfortable,

an like been or taken. and seen responding in San think of uptick You've occupancy, downtown your I Downtown L.A. most the it markets like of exception actions guys have to have Francisco, with you sounds the well that the

did weakening yet, you correct? and still softer I getting but like are identify markets identified missed, maybe worse getting it didn't You and sound

a Alex. fair that's mean, I Yes. statement

Francisco aggressive it's saw pricing get We're portfolio. small part made out, of dramatically But lease other clearly our San this said and and the and a pretty traffic to figure is up when responded that's we've decision to So, to we markets still that portfolio. the challenged. very we the that increased but trying back one

things in working to it's challenged. pricing but pulled words. It We're we're yes, increase very still, worked little we're, that. back again Francisco your fall a daily, seeing from we're We've challenged, intended is So, hard. maintaining We're was our occupancy. not pretty occupancy, San very backwards well. watching things

do the then on people second it so York. ability leave move, to sounds you Okay. New whatever or the unlike like question, guys just delinquency, the let And

they're So, rent, you free sort unit. never down. there never They're the Their in rent leave. people good hanging or who these to pay. be are the the people let are are money expect going to out do to came guys that delinquency for of freeloaders The people just you and leave the going

were we positive it I had people paying be, people. mixed because There's said around revenues like of no that I mean, payments. my where assets five doubt, a of one bag to is us to be owed contributed in we going had remarks, XX%, to out But going there there's delinquency, meaning back

people see these a and get struggling the unemployment of out lot we there, hard people So, there's payments. work continually to headlines,

will So, coming take In advantage us. don't delinquency. to the is this collections thing cautious to think end, is out, that's through, whole thing of plays a as majority. and my I this always that as there us. many worked are. some on out it becomes harder tag, trying we're the sense money it pay are on, to good But relates to But, of There as drags how so effort make how the it and certainly them

proceed question. question Hightower with next with Rich from comes your Please Our Evercore.

hope everybody well. is I

a different policy from steer landscape maybe what's conversation we conversation XX time the to very take next risk Just reports. Mike, the on your updated certainly, the days could your And having in different here. be a direction now Essex?

different So stand and do XX on we bills just where and Prop so forth?

to talk there's lot about. Yes, a definitely

XXXX, interesting the So, Rich, law housing discourage is if on But to And, rent potentially nineties production that they And, law back that of can really California, change really mid Costa in promote would work amend you them, one and that that would in bring that all housing severely the was focused I construction miss XX that it the just up so we're don't forms it's Hawkins. cities a control of because not adopted. more called biggest Prop the try and which again. passed case AB follow control in most were ask passed housing the obviously, in here rent of housing XX along did was last fact, bill statewide with middle amount in thought have protect with California. of jumpstart we to respect bills the and need reasonable already a the and finding year, intended that we to in oppose for to XXXX, need But that which tennis. the apartment that that ground available AB was the to to increase industry about it other

XX the someone did job a that housing It's legislature of is in good by that. interest brought involved the very a that group. is thought we So, But Prop industry. not special

are Prop to we XXXX Prop by people alive, a essentially and made are that used same entity keep we be our that they Polling different was passed. they've on to at little with entity to the progress. think this XX have somewhat to lot that bit and in In because already it are control. that relates time, lead as similar of team to And continuing and that maybe we statewide was Prop I politics case, group so, of a XX fairly And to our the campaign. AB opposition respect rent decided better XX. in than it XXXX continues what The

see well, So why are all can there somewhere and campaign over see proposal? you labor, joined them hundred other do is there and interested, a community or opposing we And which Essex to Prop is a control I seniors, noonpropXX.boat. And need if And something this organizations proceeding that is go like groups, cetera representing website website the XX. that have in et it. rent anyone's

showdown. for preparing and final about a of it we’re support it. percent hundred the money So, we're we’re optimistic fully and We're raising

So on Prop do on, XX? that XX. ups is Prop go maybe the you story Rich, on I follow have any before

great a was Mike. that Yes, summary

that takeaways from mentioned environment, or anything of Prop other bit the that’s there are little a element polling COVID there And You is XX obvious, maybe back. specifically. driving than that any that the things

XXXX see declined. was exactly rents it out declined going Well, rents that. to have are it's difficult since to COVID relates play passed, how is as AB and certainly Obviously, to

that legislative So, it that helps And is seems proposition give that already the another chance to And the be same why because, think for have I need us again, work has that a actually effectively XXXX not again, the because to upon. legislature what attacks a solution. ballot we issue working. acted issue

go that with the do Certainly sponsor has to and, ballot to we and to housing, very do little with why So, need that fight battle. respect the to box?

of and Prop mean, anti guess whatever. So, porphyry ordinances, but I we happy give are and and different eviction would John, the call ordinances mentioned that's will or the where these extended the various out city, discuss, there's I like, to we in the federal constantly which out to incredibly a terms. sorting team you see, XX you're coming coming want also through credit They on. And there, weeks, more that ordinances I so eviction to amount even, ethics then, to are great I all we'll And, there'll changing that are on think because tremendous are. difficult if be being with different things and laws county all going state, are respect I of separately

in they're I think pushing of And legal San some in some because the for likely normally there out landlords would an future from I eviction. delinquencies. seem with think, will Francisco is to appropriate what that to on respect action the throw COVID-XX any This be as circumstances. I them example time envelope permanently the at be that banning

make mean, to if you I definitely almost uphill have to have extent, have appears So, no -- we to -- for where we respect struggle never and have can't no fees, almost never your incentive scenario almost seems it landlord. then with accountability to And collections. create that the if you an delinquency, the to late pay you charges, like there's no it there's interest there's a

expect. COVID-XX for we're hardship a the documentation things is because that So, of allowed cases one normal and many would to not in this dilemma ask

So, this continues to be an ongoing dilemma.

turn of sort But one of the also nothing call. about Okay, the you allocation may, capital your markets sense? it's core longer a to do can think what's beyond dime guess somebody And and a incentive mean, I I from risk do called into diversification obviously, question portfolio term. being in I follow quickly. might And sense that how the standpoint? on if a your be up, or appreciate current you landlord

very here specific we're reasons. for Yes,

economies think relates I major globe, and metros to fifth I big while of California like -- which, the diversified west as the the economy on largest again, something in or actually world. global we pretty think So, coast, a a part the it's it Washington we're

done talking tried with is a and what the down to diversify we're respect Coast. up small and about many, West cities area product many So, in and not to we've

for that here? might diverse grow having time. more I and are why because we over demand actually think attractive And here So, better we're seem. is housing than supply rents very We're said that, and

doesn't so, that if places we be long exist. were would the as growth there likely rent And West similar But that had Coast, term there. other

time the risk adverse And and the maximize so, we're of the and way certainly area. which it Coast, way, trying a portfolio a very thoughtful growth again, in within to it's and a the over large West do diversify portfolio

geographies do certainly our other to we continue opportunities year comes at look other which We in and and will we constantly and do September. strategic at here we'll planning And so, that that. the a look up Board, session once with in

so, and we'll sheet. but little little to do this strong balance maybe And bit a would a bit, that say, I anecdote maybe is change continue it a will to very less diversity the

that. have periods withstand the is there the as a So, kind have time believe that, best when done more of result, And to you worlds. and volatility we we of we've of both

the have that and withstand significant long-term and sheet We other hand have rents. highest can growth balance the rates a strong on very among shocks

you. Thank Great.

Anderson your with Rich Our Please with next proceed SMBC. question from comes question.

decline to Thanks, be a should and there morning, everyone. proposition good rent Maybe new -- cap

Hey, for for governor. vote you Rich. We'll

maybe problem. trouble So, that the One of Mike I'm wondering you have a months now the I us to release time peers. real that remember of supply sort of I but that little a certainly your is over West over much country, Coast kind the have the singular I'd be noticed state that for big And wrong, Point a of common press change perhaps that have back is, things period a from you economies, I'm tendency the were having here. third that conversation close. quarters change than quarter I've on of in the might issue flavor, area for things night? quarter quarter, a And chance there of next but shorter thing better. measured things pinpoint to And a could about a had years release we tone very that guys still could you saying your vastly bit months than in in were I lot different it in at concentration, last back California, the concentration big the like actually know get that's peers. to get different a a knitting of three

finally, to little with they find than of terms a term the April a vacancy And, think said job a longer and that can on it also anti be move It more people but set we looks their some needed more than tenant we us starting that like that. caused bit these the it's affordable abate fell if life their tenant. of again, Having long-term housing others. up it were ordinances, because to aggressive off letting at more. decline lost and eviction be that, but probably And to in I might cliff occupancy in of good

as to And during the We much so and don't don't some position something. quarter, using we again, catch that concessions better a playing trade-offs were us that in John cost definite July, with. overhang build occupancy in have we're that. have up definitely to respect we and then deal have And to with as there to alluded

to help quarter. So unemployment points. from would improving better, us by say I that's incrementally in going That's the XXX basis going certainly

that out bars, all need production in my even and comments, like And jobs That we looks like So the back. restaurants I a to et news but road. and film there tried choppy come choppy looks a and allude good cetera, somewhat to roads. the business as is service there to restaurants,

will So that's cautiously we'll last optimistic think for be do the quarter and see, but the better sure. I next than

and that? in ago at the always were and it mentioned years is coast far markets, is to this radar at And something the you when and other some area, you that remember probably look was you're Denver then I or like don't away question, Baltimore concentration country, looking your when XX to or West at closer it going more perhaps

element stable to is the federal of people. Yeah, I look at little metros, other the to the in of stability it's do darn Washington government constraints. above. the DC is try similar major pretty employer a We at and coast, West we of there's mean, some what look economy supply

not line. better can And and that a back it like apartment so are hurt difficult that although we time, of the also the very to produce or the trying so to look do things which it. then ongoing, when also things supply we blurring And like fair West much it same to But, tends are amount consider at find. comes well, coast, at are markets find

our those our Tracy say, inland further point much markets other you We've of markets. an step near know, are in own to in Santa assets time empire. owned very that I'd Cruz. we there and So asset at existing might the in experience but And, a what the are out. some just is, go markets, timing We

this of a of there up and inherently trading is coinvestment timing entity, to our more an that that feedback we look from going so also which sure a take example, they is that, and something a so, time do. setting board type do exit And what possibility have type period to then from a and we're exit issue. I at for a going consider want are know do will to I'm not harder

So conversations having robust more we'll it. about be

Neil One Our question. Please next your from with proceed question with Security. is Capital Malkin

more on the or acquisition things. is the development, that of the maybe see do there? distress appetite types talking what of talked Can pre land, side calls that this Those but on development hearing the only development shaping just inbound more just see, to and side, side, a ledger. the you side, you purchase. curious nine about and going how market, the next, side months out not on you maybe of about, of Have kind gotten external six you the level, the the how JV So, started in and really business

All Adam. right, well, this is

feel and hop-in. to free Mike cover can I this So,

the incredibly as stubborn far as are it on decreasing when So, stress landowners comes expectations land values. land their side on goes to things, the of

that lots But calls. now. be of few very a dry seem inbound getting to yes, So, yields

decrease with costs environment, some now any challenging if that right much rental there's that seen would challenging very pencil. we in a haven't that construction coupled see little We so

though. there are conservative a even of But with demand have standards continue that pipelines. there private gotten higher probably number are construction for where our that focus the, be there we aggressive the and main be because legacy there's searching still funding We to side, to on that's Like on and continue immediate future. robust is for deals with lending our are for a the the going said, high underwriting. that And prep a gotten relatively more somewhat still, equity we've the I to have out

the worse like it Can worse and to Okay, extreme. each things kind been about just things in XXXX. sooner you great. for the is which couple continued of emergency don't the talked and I that one call, in either think about, XX me on a April particular, know, ADXXXX, end codified XX-days of talk statewide of get, of Other the maybe talk moratorium, I seems regulation or of about state plus statewide like to

on what's trash like would look maybe D Seattle. Just you at proper in there. then, guess thing And part going other the I be

deep of of type. lot you the things and a say at these belief, California that, Washington function on the of are much look mentality lot as say, a very a are of lot I'll You they're you issues although a diversified

these just out kind things approach frequent more you seem you a at come on wondering that process how So, through to basis? these, or navigate of that I'm

eviction our will great related other a at imposed evictions that tenant we own short-term, Yes, things. number I XX-days related surprised self it question. bills our And out of that for in had and this. incredible, say protection both and own And it is a come we the of limitations are rent certainly the variety and of on increases

that in too it point and the something just I that is that So with is that, would which, -- at getting think dealing this pandemic. guess point things a far. with appropriate But near and go proper will there's I

ordinances of different so our prolonged and is resident, period with comply the or understand affirmative there. all what that. a do they some There a same levels of advocate there COVID-XX out if both their like funds, And with their out work try shouldn't, time, something responsibility steer at And like a was of example, the have to prove if impact to goes on we that this to government time, try amount certainly in all. at look or And are is they're no mass evictions, we at for existing interest certain for resident affect that, constantly And in some realistic that, again, I if change. they all there's going a following others and discussions CAA to and And people, you're it evictions be widespread situation. just have we're this at tenant. and

COVID-XX fact, to we're need working and what can try be it playing We better do them of then both their several to issue. In for or essentially acknowledge off prove is thoughtful needs to together, level And but field. we react their us. on

they're as currently do don't laws exactly. So that the constructed

just the mentioned, evict we there's a seen point as on anyone an any prolong get there delinquencies. remains process what sure the out and laws not I in limited basis. be to So mentioned, eviction delinquencies. back for I'm particular you And not it on that to bunch paid still of And but COVID-XX to San just laws. indefinitely out happens exactly inability the one time you how at Francisco, those those with ongoing

shouldn't have do. to a, they things to essentially have like been disappointing then to it's certainly this our ability from people seems that destiny. perspective, be it So the has and ability we issue an ongoing our control allowed no And do

it leave I'll that. So at

Please question. Calmes Alex question comes next proceed Associates. with Zelman from Our & your with

Just funds another match looking or little a progressive --? at sense looking between Or positions? it your are more make on discrepancy the you pockets, would for get to

going do Angela we about everything her funding, forward. Yes, that mass remarks in firstly, talked

So that equity definitely and buy plan others. is stock, buy and back just preferred the a not

her outlined the of uses rest for Angela the So and sources year. the

we're So that. we're sheet. how to -- page think think Maintain same to good a we're on the do respect I with strong balance I going very

at marker is rent looking for patched month, collecting So following thing. what up usual over in the for doing month

to hear question. your A bit little hard

it. So repeat I'll

right. it get I So

work for and obviously someone's you communicate them, to the to time. the a with reasonable. if normally rent, over reasonable I if an different amount think, we're start usual and is case three notice what time. and we're day month let of through come a If with which delinquent, communicate, to they You're either If collection going Because have asking delinquent, don't them that. going to up rent work with them a someone's over him a a we're cadence agreement they we're going give process to going just plan prepayment pretty in were that's want

would where is how normally today. that's go it So it

we're and seeing available. The is, of Some pleased that those current any what I'm up are on and people options owe. see hammers, without very communication step not again, they to payments make

others their they'd rent. wanting people not they're they're Some be to payment paying plans, keep about enter whether able more to but concerned than those, still

And so question. answers we're people seeing good behavior out that of general. your in Hopefully

percentage you’re mostly seeing? negotiated. been that of more there May. looking the up you April I’m end basis Or pass has have collecting in with been April, catch at for, Is you XX% and that point it rent contract enter

Angela this is here. Hi,

not one looking means mind reserved, you’re essentially which over of this But collected the amount at month. that in only of is for delinquency. July, store, at If keep are towards course of goes that XXX% some is revenue same a we

John's be early trying be most people it is okay numbers. this mean that point, seeing given to are what too so responsible, good trend are but does just And to we and July behavior to

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

Because big it markets, certain market for to free. like follow understand comment in help indicative you just whether up of eight where feels are. me Just one rents private every, aren't a elevating public your and can developers weeks lot where concessions me. of four are John

to So price If XX%. across it competitors feels four market portfolio. your all eight market transcend just like elaborate is clearing weeks neighborhood the you free, of are in of rents is your Could that? the rents down demands, on

things. a I'm nice glad to, first trying you've to track I job give done you have credit, guys to some

created it's is of not I database. of own market having and I ethics of some appreciate aren't frustration that the job. our proprietary does what So up We because we're picking there, out great great what doing but would vendors a a say data, got out

days, we've and then competitors They're And in doing a thousand got is over units. find we're are concessions. So what different we different assets offering it different tracking.

that gain us just for to our a Increased was day there back the units many maybe offering are four a in we assets renting. are June only what mean commonly those of are week. doesn't And the that are saw But ultimately, works there that absorption, that so And lease, against leases like very speak for trying large multiple each can't competing peers occupancy. were us. works other, that and are owners bigger development for that that

bit so not San we the receiving many And having for Jose, find that off, backing has the Oakland get moving the in those help cases, of things backing or San us. we're And offering on paid lease leases different downtown or concessions, because like we're downtown lease CBD have and up going little Francisco San you've some again, there's got is off we're cases to there's we're to your a by asset when different them, on blurred the so without competitive concessions. of move in in you up, generally Francisco but that to plans, lease to now, and pay get idea consider up asset a very spot going cost concession all LA, continuing off a in into

you're you're offering street, down If concessions. the probably still stabilizing large

happen. up conditions And just But with Orange say, markets in down a blurring the many seeing market, isn't little we other we just County, what rapidly. there there's on. to of in Ventura, like San seeing then that's And dry happen cases, are of as and you are kind that So, rather can get Diego, that drying going secession up. lots they

to question? absorption, tool for a them So, but to that answer the effective, really ideas that is absorption your we the Does overall, understand well and as your to increase us. try reality increase I they again, use and and worked

of It debate sounds a over does, more it's it like duration.

just, for ever mean, months, it's percent continue across I markets. just these XX-ish have these to next six to concessions -- be a effective So, market? down Right. rents if lucrative the too it's

basis Why yes. gain with we tax, concessions, we're backing in there XXX of was impact again reference because and interest offer increased And an we that. XXX occupancy from points to we off in us,

excess well done worked that to So, create demand.

if they market. forever, Then yes. part be they're So, -- went different. yes, of on the That'd

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

John, the of Downtown you was the us value have assets of Bourbon. I breakdown that is versus urban or The suburban. in remind wondering you remarks. could defined just mentioned that or proposition prepared as you identify Downtown with And market? if the

look our to suburban. California, on Southern we at of blended some Sure, there's, store certainly yes, obviously well, overall, and in you we the XX% very under blending can it's, XXXX XX% be where look get as kind have in urban portfolio. locations incentive but into about some in XX% market of units at that little goes And we downtown

of sure. down are then and we And but renewables this there's XX% an might higher X%. were in in far no better wondering gone waste second assuming results, weeks interesting already as construction would the down average profession I quarter, are the property effective know than imply which level, be the quarter rent where you as I'm that it's discussion, four think then on that could that between change. Okay, reasons if quantify I I have help July, just so in I'm If is sector, gotten basis was the difference given compression sorted, but level really better there if the as it's not second

Yeah. on you I definitely can tell that.

If at weird you definitely in were on in They effective. better and advanced renewals and not in so to or net the absorption, And truly regard renewals, going increase like comment just get to net all concessions they're effective transact in the a it was many cases look week it July. something that. on this the

let's translate new the absorption. an wouldn't to the That's leases were renewals. or one leases, focus on the say, new the area. closest X% be to increase that somewhere concessions of X% the on But offer with average renewals an again, it month was a, on So, in the to

away. that in So, some of gone has

over it definitely that look if up way so, June. effect, net are yeah, you rents July And purely at in

from Silverberg comes with with The proceed Mizuho. Please question. your Zach question

there. Hi and out good morning be

use forward? you allocation. stock I'm into the mentioned today? moving release, view capital Where of And the you fit curious, on buybacks. stock this just program press in buyback one best quick more a does Just your how do capital

to Yeah, slowed affects period Yeah. Hi. of longer thought that, with bit be a is the the we've are time. Mike. This a stock the is on and buyback, there going COVID-XX down for little us of

impetus the important. do so, of buy is quickly to And stock lot less a back

some debt-to-EBITDA watching metrics. of constantly sheet are We the and other balance

going shrinking. leverage sell And obviously along so, assets you're if the way, as because you're buy to asset, EBITDA back selling you your to stock, need do an to

buyback. stock what the things the and way it. action interested asset do along respect We're us. very still again, sales with of we're important we how is one about still doing. in funding is with that mindful we're So, It But, of all it is imperative an to to

therefore out that, point equity providers be going like probably to time, we given your this and definitely fewer as a to that, co-investment at better of mid there are from cost transactions in guys say, is lot we and with better trading. is I'd Adam pipeline type attractive that. debt generates are our assets transactions trading on be mentioned And when the flow obviously, but four transaction to this market quality low source, and what have see we the more and And, a cap of let's preferred whole that the to that would pick twos, idea there So go gets selection in buying, of half a rate say depends and transactions. cash are out, it of pretty

the when in answer? best and well. going business, have the on I capital lots side the we're there's this get fun we and external think marketplace that's think I opportunities of of pick what is, of actually, that the use do we So, to opportunity the and to disruption is, I what exceptionally think Does part

quick from me. one Another

this a touch what lease I leasing any of have up from a you you're return You targets of and portfolio for guys percentage sort around app that guess the less Do your developing. project process? mobile customer mentioned is completely

Sure.

forward. but and on the mobile to being setting away the appointment point up, all way giving change up getting perspective So this through can the some in come and it'd I literally lease the in at customer iPhone, tell able quite a we're to set be metrics of moving a time the instantly you obviously not that, on from approved

to very we're us give from in about have, the will very touchless, time, positioned than touchless perspective going this in the and touchless We board that. excited that and well great once they're when that does all experience the the through otherwise at you're move the about But, really think we So point course a go forward in. across tour a sense, site, customer we talking get can way they of going answer to we're that other question?

turn the call question and to for comments. We reached I'd the like back this session of end have answer the over at Schall to time. Michael closing

our someday And a wishes best day. everyone families good. joining to we and your or all on good thank either call the Certainly for person challenging Thank in And operator. soon. these you very times. Very to see you you today. hope during Have Zoom you

today’s concludes conference. This

You And for may we thank this your participation. you disconnect time. at