Apartment Investment and Management (AIV) 2 Nov 182018 Q3 Earnings call transcript

Good day, and welcome to the Aimco Third Quarter 2018 Earnings Conference Call [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note, today's event is being recorded. I would now like to turn the conference over to Lisa Cohn, Executive Vice President and General Counsel. Please go ahead, ma'am.

you. Thank day. Good

risks call, Actual on conference results statements make what in discussed to we XXXX which be description During be may may can judgment, the differ including based found certain subject are management's These SEC XXXX uncertainties, projections are a expectations. of filings. this our statements forward-looking and results related today. and from to materially

and part FFO. are of certain discuss financial of such These Wes non-GAAP in Prepared comparable A are Terry call come our prepared and Vice measures Terry I'll published information President, and Property defined Redevelopment; question-and-answer full Executive remarks our to We remarks. the will Chairman Chief also turn CEO; from in site. now release Operations; Considine, session Kimmel, GAAP reconciled and Powell, as Financial measures, charge Keith Beldin, Aimco's Executive Paul Considine. the most of the our supplemental AFFO Vice Web earnings today on follow Terry? in Officer. that to the will charge over is President,

Thank interest is this Aimco. for and you call. apartment you your quarter. you, of had on Thank good morning to business another Aimco good Lisa, and The solid in all

In expectations two fact, months. Paul for the for led strength second its of in time our full increase line to summer season the year bottom

further good upbeat are finish optimistic that we news. as We bring will XXXX XXXX and

forward deploy flexible to look and to we a to to commitment capital, sheet. we As our opportunities year, balance for maintaining continue look next while accretive safe

as Keith? to the in Operations. things here my the a now the and Head in turn results I Aimco teammates, offered work quarter, country. opportunities great For the call to like and I'd solid detailed forward, their report they Denver us provide look of quarter for we more to Property over in Kimmel, both the third hard third Keith and for across And

daily report We've we third strategy occupancy. that quarter to I'm Terry. average had in solid operations. purposeful a on executed pleased Thanks, a focused

XX.X%, of XXXX. points finished than quarter basis the at better Third XX third quarter

accelerated which the occupancy to from October, to from springboard customer Our This XX.X% to we maintain in month of each the is in quarter turnover has XX% into expect resulting July further and XX.X% high XX.X%, provide driven throughout in our quarter, This and satisfaction fourth grown XXXX. by selection. consistently focused a low September. customer throughout

leading automation. efficiencies, quarter, our margins of We same-store in and the from for continue XX.X% process benefiting centralization pure staffing on focus to have portfolio our consistent

our to investment our the to up results, up were a due XXXX in our in store were across comp maintenance and for higher revenues items portfolio. Turning to same X.X% quarter. plan, related with challenging non-recurring X.X% Consistent expenses

a result return us forward, to innovation see to in Going continued enabling Aimco we expense XXXX. like more

Finally, income rates up new pressure most up lease new Los X% San Locking impact the Miami, were we the rates leases lease net rates where up Angeles, of competitive saw saw Area Boston, directly Bay up Diego new were blended supply. was on to in at quarter; lease and in the renewals with and operating new lease same-store X.X%. X% in X.X%; We the which X.X%. X.X%; were transacted of

Atlanta Boston, X% Towne and Angeles; same-store Area, markets with first Los are acquisition in and with Bay this our which same-store more underwriting. quarter our to occupied premier Sterling We’ve came Outside revenue revenue communities two from for line includes of the growth above revenue negative top quarter. had half revenue. redevelopment quarter; Turning occupied now lower strong these this San same-store Philadelphia portfolio, same-store for the the third revenue towers the for the Philadelphia, Diego, our delivered had our performers over was the leased. the XX% of rents representing than represent XX% at growth growth; XX% and accomplished results; our Today, our increases X% quarter; than fourth have tower same-store, over Park is Miami and less of the three

Philadelphia occupancy Our increased four DC, Tree where underwriting. had underwriting. by over XX% basis achieved result acquisition our resulted revenue one points, continue non-same-store we’ve and at Overall, Washington both communities portfolio day our ahead be our on expectations. rents on in by rise we rents our outperformed more XXX of that total have the performance operating in our income, And with than track has and to and occupancy seen encouraged and acquisition in were this Bent represents $XXX of net

Denver rates at look while increasing the average are re-lease thanks better in basis Vice a here your to are years; over X new teams success. X.X%, same-store the up of lease than to renewals Wes are October high up field all we Executive points up basis our our occupancies watermark the Wes? XXXX XX in blended Redevelopment. October our rates results; XX.X%, X.X%; Aimco I’ll the Powell, turn great President over and points; results; commitment for to with XX call past As daily to

Keith. you, Thank

we track Our redevelopment business of value invest. about creation remains on for $X.XX dollar averaging each

delivery San year Philadelphia, At two over the period. with capped two-year $XXX in Towne a successful projects. invested million quarter, on Pointe project our we and At and substantially Park Jose, During repositioned four the we we completely place in property transformative final $XX Saybrook of tower. the million fourth completed redevelopment construction off

which Both development of to $XXX million decision $XXX of and forward team, to our As we to One XXXX. ramp the our this expect Illinois. stabilized to $XX We XX at million property, existing unit about programming is in like million Beldin Elmhurst, Creek call Elm includes Elm X% in our to by would and a With move achieve from strength a of the and ahead, our to the example aided Paul? pipeline our approximately XX Chief townhomes look five that, year Paul townhomes yield ago. our NOI the and adjacent constructed were I we XXX Officer. rental Financial with invest given plan the that IRR re-development cash townhomes and that flow underwriting turn new depth spending development greater XX%. operation to of and land the free increase than on of Creek years up of over our we

you, Thank Wes.

our which would I like has strong to is sheet, First, capacity. highlight abundant and balance

$XXX second the amounts Chestnut call Properties our Hill on all quarter July term borrowed and loan $XXX million and proceeds in Hunters from our line As we Community, credit. our of with reported Point on management Village business, dispositions the net earnings of asset million repaid

excess quarter by value. We also of pool proceeds repurchasing billion; invested $X.X net secondly, at our quarter following of by; shares Aimco published unencumbered an to million first XX% asset $XX and end, approximate discount first, our properties increasing to XX%

through We targeting address XXXX XXXX debt have the $X to to quarter. property loans almost worked billion of also in maturities, fourth refinance

repaid During million interest nine and of third the points time to of another XXX since XXX rates million fixed $XXX And rate quarter, of $XXX rate LIBOR basis the rate X.XX%, loans. loans with floating we rate corresponding pricing. at comprised average year locked interest quarter maturity million a spread property at of weighted debt $XXX we is locked the treasury five weighted a end, basis $XXX loans over of The million rates of XX points and of day years with average a $XXX of million.

exclude connection this incur increase refinancing debt approximately point refunding activity, of past, billion collateral property for are quarter and over increased maturities liquidity. year. and refinancing the loans. full one $X accordance those the costs fourth quarter, lowered flexibility, risk, year costs in forma improved from with substitute in $XX In our $X and its As other AFFO. million. billion, extinguishment to Aimco expense, One of we to with maintains just With we our properties right pro near we fourth our the policy, almost In last have on value the FFO interest to reduced of XX% unencumbered in asset properties will as expect lateral will completed

uses, consider offered sale. properties XXXX approximately more we of have we billion regularly We $X the capital market than As sell. expose to for properties we

we for rate with of our discovery, internal cash While philosophy. trade only accretive fair we flow have return uses we free when consistent it identified sell do price

our to $X.XX of fourth and for year-over-year performance the of quarter reverse midpoint X% spending, earnings ahead the replacement was expect capital AFFO will up the was quarter. turning $X.XX the third timing the financial from Now, of guidance quarter. of which release. of third per the outperformance the second in share quarter we $X.XX with provided

X% full of full range a net the and maintain equal the X.X% the X.X% We result, in In our same-store our guidance guidance to we September to high prior turning raised late our range the operating range. income year the of guidance. end year to of in midpoint, to increased summer to guidance clarity end of Finally, at X.X% same-store revenue X.X%, high due to range. increased strength leasing of season which, results, prior to the and XXXX on equal store expense same as

per We raised the also FFO by also share We and XXXX XXXX midpoint. at raised pro guidance ranges AFFO $X.XX forma

up the guidance per limit to of per time additional increase forma it now that, for XXXX second open The half $X.XX questions of second are pro between turn you $X.XX forma question. we per operational now completion full share the fourth $X.XX We third for and an I'll and your results raising share. questions. quarter on the queue. to stronger the we AFFO to per first reflect and Rocco, and Now, Please FFO the pro the expect be for AFFO share. based two expectations, by the quarter and share, call per With following between quarter year FFO to year. in be $X.XX $X.XX our will $X.XX and

Trujillo Thank Today's go Trent Please sir of comes from you, Scotiabank. first Instructions]. [Operator ahead. question

share published for traded around while. XX% the repurchase, stock Regarding NAV has to a discount the

available on acquiring the Victor? function no $XX some So executing the of what a was process buyback? you having longer for from million decision the capital Just

in we a good it and Victor. wouldn’t bias it at I tie When of opportunities we looked thought included our a at in it October, particular to looked was time. event we

nominal as you prior commentary I I alluded additional not some doing or repurchases, if recall small a follow-up, a do guess And correctly, what because have share appetite just buyback. to for

context? this the you in million how So characterize would $XX

would a think it's substantial I buyback.

executed or about I priorities? may, trades today? thinking this how where seriously capital Are a considering additional stock are price higher you at you if since than And you allocation repurchases

look we regularly to we all something compare It's at uses. it alternative and our

of And your question line our Please ahead. is America. Sanabria Bank go open. today from next Juan Hello comes Juan,

about just little talk we I a uses was bit hoping of more could capital.

about redevelopments opportunities You more maybe money place. Philadelphia. hurdles? Are not any did to up work to underwriting talked to now coming the there in developments the value-add in some put with buyback and You'd meeting got you've acquisitions

could in you in order the there? returns you that see what the the So market out rank and order pecking terms of are today

a has And free of opportunities opportunities in which flow, have we cash those most pipeline internal deep double-digits. rates the are see. probably low redevelopment of the attractive Wes return

are that or some out seen meeting obviously may acquisition there of opportunities you any And and that guys developments as we've the supplying looking some not at hurdles seeing markets?

that at whole in ground of from and be We We might the met our Fairfax we another investor very look on sale range in that's that for or would and having where looking. to year developer we lot properties for. I part new be think liquidity found And as something look an be regularly his keep also this you of earlier that we old at find is County development a anomaly. we it would what either business. from properties But and look there's say from course Aimco in hurdles, there's across lot properties and ranging that the interest, for good Philadelphia for very of know a of might

in was $X think opportunity side, XXXX to that? on the about build And in just hoping you of mentioned Paul is an start should beyond just you as we billion fourth quarter? anything refinancing this for I the else target we as refinancing, that's the that should debt think there

and our upcoming our largely our refunding refinance the to look to risk really is table. rates repricing of opportunity maturities, at take the focus today trying take off we advantage As debt and

XXXX, take in had announced repeat callable your in preferreds, in included that it the the so of for preferreds May. you're didn't don't that will So But as thinking billion, comments. that plans my we our previously I forget about model $X out are

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

for because you back It's little we a have stock about Michael to Nick. Terry, not buying been Bilerman talking here I'm it going disagree while. with with in

I So make capital your what in better a why the I more stock curious then high-XXs, was at level? XX. of held think it's definitely versus use capital. in But attractive of executing good back an the low-XXs a was I'm much or didn't use at use you wasn't stock what attractive when guess

Michael, Michael. clear we we're But our and at make best sooner. decision. and agendas probably you at always listened to to to to time postscript a each do the is the have And that, alternate meeting hindsight look put and I we should time try what activities is, competing listen to we have as our going to uses

move hasn't. going in of think decisions because billion continued always sales you've haven't pair given up disconnect stock. talked you about your the market, buyer forward, of that capital going does that the been it wide you the trades, Historically, to $X as your historically allocation expose buyback Well, your active about with an stock does trading, stock you're to

Wes' long long recent we is it uses look capital certainly periods a advancements using we've in at stock there you'll your including because are our And looking reduction and point of a quite in history, sales valid. and redevelopment, our perhaps as at remember including the capital spectrum been is toward of properties, of across capital when History property and been time you've we'll debt in stock. be a active In in including pricing buybacks. as time, investment capital, uses, buyer a

in has like been that I and as to side. stock one able the being a we've So it's always And know that situation it doesn't use tax about up the being limiter, talked after-sales sound moving proceeds use buyback.

So the know you have silver correct I if don't found bullet to that.

to we to makes than we when it's say a it which And to don't advice that is I always accept we lower it said will. us, sense your at that more buy at better carefully. want I've Michael, price. look And

ahead. our Capital Markets. question KeyBanc Please And today Wurschmidt from next go comes from Austin

context million should a $X you the amount redevelopment of buybacks next of got to the next execute you've In the aside, on in of spend much reasonable as and the year, acquisitions $XXX expect year? how for billion we

is Austin, Well, Paul. for question. you Thank the this

free an in earlier of activity. investment based flow cash our everything look and is trade and As paired up invest it selling higher to was where brought standpoint a from philosophy rate what on return question, we we do to their a at we're fund

And additional $XXX benchmark the million plan assets. criteria. additional in sell criteria, the there extent next that would year, have those it'll meets same of spend so place a we that read to are also meet in that opportunity, the to And then we if

little from to is here maybe I where guess differently, bit down I where ask today? by would perspective to leverage leverage target comfortable you you're supposed So think a a come or year-end.

now where Yes. I will actually reconstituting would of and expect properties. our remain between are fairly we It's leverage that resides constant across multiple just leverage year-end.

maintaining to if of you of that But probably while the million pool XX%, how we $XXX LTV fund activity unencumbered with leverage. redevelopment we're on million overall roughly portfolio assume is would our about grow assets. an sell $XXX so to So that's a able that,

to And moderate you've of stabilized being? here then lastly you you high think or in of will that they up release kind just ramped occupancy time bit. renewals kind feel the which with referenced renewables Occupancies little weigh stable. in like the on continue you October renewals are strategy Do a do for implemented

Austin, the Keith. the revenue. we total the is of At this day, end saw

and lease both rates And so occupancy. and always the it's new renewals combination of

in We moving occupancy up. value have the found the

be those down some in all movement And components. and there so movement be up some can there can

go of Janney. Please today And ahead. question comes our Rob from Stevenson next

the have markets of now? versus point and year-to-date what right beginning your the good outperformed inflection Keith, expectation to an most the year? at And markets in any underperformed looking bad be or

some was Atlanta could than little I Rob, it Seattle be was it out a to of it would better and the two question say was anticipated. Area done the it Bay anticipated but it the go a day and that have point would think that been would we we point would've coming and we I out year. back wouldn't I if little XXXX, off bit do it again has little would anything point I it's And and would well, coming sluggish on beginning X. been better inflection moment that point, as and at we as that we the Area bit acceleration strong a to an probably more the the than a far XXXX anticipated very and Boston, point. Bay done Boston, The inflection do I anticipated probably difficult day was on of at X. than stands to out

And year-to-date, are X.X%, property growth thinking is up it? then is feeling you next forward same-store is is for for Paul, Operating down up the up how of X.X% utility going years the Where is X% going forward? property expense tax the pressure tax are and still few but growth you about expense but reality insurance X.X%. X.X%,

Well, mentioned expect XXXX. in Keith's to prepared In that number Aimco-like we more remarks thanks expense Rob. question, he for to growth the a return

your grow to year. would capital I So that level XXXX. than XX% expense California about to where want in of I in specific an taxes, do some would where have XXXX per our expect seen But have particular have there XXXX exposure. tax one agree of XXXX, In we of to the to I but we located that think it's for out also limiting It's XXXX. area is we increase year-over-year is from our where that will X% benefit see better don't for real in estate guidance we that growth you question I regards an give about to point

overall does protection our about real when we some level taxes and January. increases provide we specifics for thoughts of So and XXXX together around our are can in talk estate that

are to any what's inflation and ability continual cost to for the counterbalance, save the operating moving expenses going technology, the people, wages the guys? personnel the there are tax the more seeing mean, you I on where But places standpoint you forward, property

speak Keith. save expenses. there this opportunities. We Rob, think continues be the is opportunities I'll to to operating to that on

that find that don't Now, we at what and things person-by-person paying and road and we We the we're end may we're to best different know continue centralize on people, our know to more think low is that level. but individual, cost ways be personnel is of an unemployment automate for efficiencies the of that. and we nearly

next today comes of from our And Babin Baird. Drew question go Please ahead.

follow-up A the retaining some the how personnel management residential would maintenance kind maybe people they of from say the We've you're on on that elsewhere anything or and different are just in for companies would helpful. front whether pressure future leasing specifically type Thinking wage wage overall next and or maintenance property doing personnel for seeing be year. approaching labor costs, issues more you're growth expense you're looking strategically question pressure about you at heard you're compensating the and having that sector, any of there, curious in ways personnel?

best will tell onsite at service residents and less people what assets service. we that most It's providing And end question. And The Rob's to is know the are knew it's that exceptional days. a -- a these the there's our our to the the is you I folks pay our have We the communities. have the customer heart interaction our of world without side maintaining the continue we in folks and would to more. and Drew, soul business with doubt those of carry-on day, of Keith. maintenance

top for done And particular pressure and there. we've a no so years. there's question we've we that priority have is several role there's some made What

able maintain And more than so others. those believe we're therefore folks we to of

And one more enhancements. from me, capital question just on

getting you if giving of whether kind was redevelopments any spent kind developments revenue roughly maybe break tailwind you're equivalent yield Help growth there's look during yield of way about just additional the and you back-pipe combined of supplemental, the quantify in on going because your is you I from redevelopment. can this development Capex was return As project of an expected down an understand economics? kind ROI at quarter to be and the the amount the under just curious very you're good and I curious forward. about us how kind

in We capital the to redevelopment manner opportunities. evaluate evaluate opportunity invest we in same projects enhancement

a return target projects target those required flow, XX% have of internal individual and these we cash hurdle hit and the each against then basis that achievement. of So We progress a individually. monitor we we projects that levels free underwrite ensure on

have with action. undertake line capital far so, plan returning and course for at we underwriting enhancements so been levels our we'll similar of And XXXX our and year-to-date a expectations, in as

And Please Kim Markets. our next BMO question comes ahead. of from John Capital go

question enhancement. on is spent capital do you're you spending $XXX what does year Just assets? was sign I guidance to this next some million. wondering it's that your your upgrading last approaching year results. follow-up on I'm guess older argue think this of looks for year help capital same-store But But took Drew's you with or like can a it up like this which just OpEx your your to you of this moderates one

and like start in then has me group anything let they to see if the add. I'll anybody John,

foremost, wanted get sense that makes about going we enhancement first do and are capital think to and projects we to spending, return. our As we where

by is So, set our dollar opportunity driven really that within communities. see spend our we the

guidance opportunities so, year because increase that And see we as in is good regard. to this we continue

that what element enhancement to benefit revenue and of we this do an do. capital we want is to there results reported see our exactly for Secondly, that's

paying to profits that's our do, us shareholders are think I make to them. to is returns exactly that investment for generate what

have we in we forward that to into the see as portfolio move we continue future. And opportunity so our that's think an I that and

this just past in think you've color the few the $XXX quarters? mentioned -- know number, sold you $X provided time are and that's was first can I provide On you the maybe But that where that billion million on this figure that I some you year.

overall. There forth. in number that's of unusually It's be by in XXXX. But will at planning the We the driven is -- this this the of during amount will depending year our us flows timing Terry. so on large some have over activities and year the probably magnitude John, it's and market watermark spending rates, year. take high ebbs that for our course for of a not and this routinely an

just I'm at mentioned curious you why it this call.

I of as liquidity. a think just source

actually John, mentioned some our we materials put we of earlier investor this had in that fall. out

to, So folks just extent meaning it than originally, we in missed the that. mentioned that to was we wanted wanted deeper our to make but sure not it that remarks, prepared

And of Rich Securities. our comes next go from Please question today Anderson Mizuho ahead.

Paul, we experiment idea working? of longer died concepts or this you has length lately, purposes on if spent death where I'm time users were planning data that a sort Pinterest it's their of targeting stay. summer guys it's actually if perhaps over some the gone and for was slow working wondering and one of together that the of

part say they And forward-looking. we do taken more hasn't strategy, much things a facts way thinking market our but we that I can planners I'd is, exists they and found hasn't would to, and those It marketing that over still it's a death. early it of Pinterest the continuing those sole to to that it. are how individuals. we -- opportunity that found days. says and have one, understand it. slow there is one was an What we're I'll take it's utilize Pinterest died of source. users have behave What are

I'm for to a curious violation disrupt legal marijuana, that smoke someone with or and question, it becomes I'm eat your over, over curious if how of communities. it's how just least thing and legalization a might pot you handle it edibles. as Next

happening. all it's Newsflash,

manage you just situation? wondering So I'm that how

can't what speak smoke-free. but tell can is I'll take of that well. I edibles, are communities our that XXX% you one I as to

So we smoking cigarettes, of it's our any any source, marijuana other allow illegal don't and in communities sort, it. it's whether or

not a about. something so, have lot that And we concern of

if at and us license that at about end to us (inaudible) little driver's it of their behavior just And to you, enough, but destructive of many code that would is neighbors, expectation systems. And residents. lease process. that to broader any supplement bit cost point, a context a And the we the on on for any a point we've a have for be initiate past is point, their behavior with process talked conduct serious of like almost an we in have a reason Rich, works with that edible the as in to non-renew resident's or for cause eviction if their our

question comes Pawlowski And Street Green our go next John Please of Advisors. today ahead. from

Keith long-term [indiscernible] just or Chicago curious is? the John, house thesis on what continued

at look We properties the of the that. at our individual all look We all markets all our time.

as look you If $X at it direct that don't site, point billion of we list, thesis. a see in you'll And Web some the sale have it's our assets of on of Chicago.

and will We in that also have an Evanston. year do next this year active redevelopment asset we've been on working

blanket out, will at philosophy individual to that we but we on a it makes where sense. certainly assets So don't want look have Chicago we

Chicago Maybe cliff to much Keith, be demand seems not markets, not near decelerating the quickly. term, has yet supply I seen versus know off most far but

happening the what's ground So on there?

they leases moved had peak be will frictional the more point. we caused first season, that the a vacancy in XXX basically little John, about

give third I So, we're almost daily XX.X%, in average to you the reference quarter a we're we're October, occupancy at at at point XX%, XX.X%.

was then end new to the some we there's some build day, the pricing. into get wanted winter before we softening the those months. At just it cold lease a got full of been there. of in So And we

market, compare for to John, me, you're of from offering of billion how the year? products those $X one you would last the type assets bid One the versus this earlier

we up we trade the on going to how driven and that will where the maybe reinvestment; get some (inaudible) much change. lot from frees hasn't uses the an And look execute. pricing of a exceptional the we'll that Pretty all in side exceptional the demand on off of basis, at a execute, sell the internal we And been year. it's be earlier on standpoint, side, to similar, was question there as it active regarding whole earlier of

with Joseph Citi. And Please our from next question is go a Nick ahead. follow-up

transactions. Paul, year FFO obviously in going good for run in the rate midpoint quarter, of a core forward. been terms fourth the busy it's $X.XX

some have upon always we'll on Nick, activities. volatility just our based quarter-to-quarter

And and so, some particular for that want or build though will one in or marker FFO is I at we about from can a quarter-to-quarter XXXX to talk give help around how guidance any of even our you do expectation don't point range. set time. What kind January a

the maybe item XXXX the one tax off? So that for benefits, year, of you about rate like from right million item? does it million, this Is specific recurring line $XX some that in on for increased fourth drop looks assuming for $X.X line run the is quarter or guidance what

I would where break our Other is our direct you Tax supplemental two Net. tax other out One Tax Historic Benefit into labeled benefit and Benefit labeled we Credit Nick, schedule lines. to is to

have is is those benefit, talked our And have redevelopment tax to other would we tax subsidiary. to place there historic year-over-year of connection always for about out model. the upon taxable are activities the reit We there benefits some going the activities decline zero That are previously in I change your where of earned in XXXX. based with take that our

again item January. we guidance that in line will So provide for

Please Buck And with our Horne comes James. next question Raymond go from ahead.

slowing leasing think particularly think maybe little a of want I you detail pressure, see market talk where some couple some I more where are in did activity. facing I bit a about supply to just you Miami

might doing? in last varying the bump is what guess seeing level pressure -- concession in competitors Just there, you in Philadelphia, how on might comments also Miami? I stay the Center supply are any Are and things how City you that And have Philadelphia? the rationale long supply with how

thought it's Brickell the right, going street, it across across literally at there's up XXX come benefited seeing bit Club way year. units. Community, of little it's to We it's specific a in delivery the it's We panorama, though, Miami, and leasing was a this and our directly it was actually now in late because we're it. sooner [indiscernible] In it's very you're actually

point I'd lot then going Park That's where development, well And new So Towne. are they're that far how and in is there moving up is the goes, speak. to we leasing in we feeling supply lease Miami. a our at as as as but of Philadelphia really direct

fourth leased the three. the So towers then better than I'll Sterling point than XX% of in any The quarter. also to at maintaining are And throughout the the three our faster XX% up better and XX%, previously

the obviously quite of So supply. we're aware

keen eye have but will it well on a it with being communities performed our there. We keep

to add Philadelphia during Buck, City we just have suffice little to bit, XXXX. high the Philadelphia Center a fairly in seen

be we As into XXXX, improving. it's think look at still to going elevated, it's we but

in So, right it's the moving direction.

reach some of to you before stabilization going over think quick, panorama kind quarters just do or many months it sort of And real there? takes they how

next had I say be year. If guess, it could of I'd to most

for And final session. ladies this gentlemen, and back concludes remarks. any team management the our like the conference turn I'd to question-and-answer over to

much. hope week of Many Well, thank this very for you, in on you to Thank Francisco. call. we all see you next joining San

and Thursday Tuesday And or -- you we so, or them, team questions much. either comfortable it next save if his on when have of you Thank one Wednesday talk very of together Paul further or feel week. calling we'll about

sir. has today's Today's for now concluded attending you thank Thank and all presentation. we you, conference

a day. You and have your may lines wonderful now disconnect