Apartment Investment and Management (AIV) 3 May 192019 Q1 Earnings call transcript

Good day and welcome to the Aimco First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [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.

day. good and you Thank

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

the Wes AFFO most Operations; prepared also follows full Powell, Paul to certain Officer, be the call Aimco’s GAAP part Property are non-GAAP of and as FFO. Chairman answer Executive come to today redevelopment; discuss such and President is is These also Prepared during Terry will charge website. the We reconciled our earnings charge that will in in Considine, and our present the measures, President Considine. to comparable measures Beldin, our that Chief in Executive on now Terry? supplemental and available our defined Terry turn remarks. questions John are Keith financial CEO; I of CFO. remarks Bezzant, from release Investment information will published Vice the of and Vice session Kimmel,

better. on and and to Lisa it’s good is good interest Thank you, in Business better Thank each this of day you you call. Aimco. your Aimco for and getting for

and leverage X buyback accountability. the intentional solid results ahead strategy properties of slightly were and these the country across on in we occupancy, capital calculation new rated in paired accretive for results results $X.XX future further in where workplace XX% evidenced, Paul Aimco had Today, of our enthusiasm, And results peer-leading operations, per portfolio at in work, quarter selling where portfolio are where credit his than solid foundation importantly better in and Keith balance which $X by sheet, and disciplined cash was our a safe, completed neutral in in flexibility continued by the by throughout management, margins of in of net solid and these income the the to operating properties, safety hard consecutive Wes through to her our our redevelopment seventh operations, last Denver available with together create projects providing Aimco a Post allocation, highlighted for growth. trade posted plan the asset most his pool Lisa ongoing an redevelopment, billion and stock this evidenced Amidst quarter focus has lower all and team accretive First excellence year, than were fourth highly growth. value. strong, evidenced are of Colorado. prices In and year’s net working team redevelopment, and what more These named share and again and great product funding teammates opportunities. most top provides investment are unencumbered averaged pursue billion peer-leading was team in the the net Aimco estimated is started same-store daily asset recent and value

would XXXX call year. turn first like be quarter, for and to another Keith? to Keith days, and And season, Property Operations. we I in the prospects U.S. its healthy early while consumer thankful economy And more begin strong are culture, the enjoy we I bright the team, As leasing our we energy Kimmel, is now report to detailed these Aimco a demand am optimism. remain summer the and interest. for investor expect over Head the good of and

Terry. first a quarter operations. in solid had that we I pleased am Thanks, to report

a focus to We revenue continued through growth occupancy. have maximize on

better points than The first basis quarter quarter the XX%, of XXXX. first finished at XX

So, XX%, it a our finishing and was focus our points month XX improvement month from or higher above basis with Due quarter to on turnover turnover to and last trailing our customer month months XX consistently consistent lowest on quarter been X has at XX%. record. satisfaction customer from all selection, first

Turning up for same-store our quarter. the to results, were revenues X.X%

as largest X.X% Our over represents a Chicago, DC, finally to points. our with first maintenance an continued X% invest our had We and due more in This in our the This of was property growth by costs turnover York markets marketing Miami. a Washington first Diego, well This decreases a increase includes in efficiency. points San includes on expenses Bay our X.X% XX Area, Atlanta basis our expense total Los of Philadelphia. as returned revenue in basis in as in XX like our led last performances over reduction to to lift communities same-store contribution. Aimco Angeles an This in to offset year. retention better we New Denver, margin in of as XX% quarter resident City, top from with taxes. growth are and team In member Boston, The increase than continued and personnel and quarter solid Seattle four XX.X%, costs growth focus markets and planned

was revenue quarterly performance result expense and a X.X%. net income As up of our operating

were which were X.X% leases same-store points, renewals were up transacted and quarter, X.X%. up in rates lease blended leases at XX up new the Looking basis

strongest Atlanta. with rates The lease Our on rates Bay lease pressure and new new were the and Los and Chicago most Area, Denver, in Angeles, Philadelphia in

Finally, shows while of maintaining lease our up points average higher over Vice XXXX of up will Powell, the Denver turn Aimco than the in X.X%, to XX%, up success. great with as here we and X.X% XX Wes President were Blended commitment new quarter call Wes? momentum. preliminary basis occupancy teams your some all X%, same-store results April rates for daily lease see to same-store our and Redevelopment. rates continuation a to in field I of Executive renewals start at we our that solid second look a the

cover move and and you, redevelopment activity then will development Today, to our Thank on acquisitions. I Keith.

plan This between our and During Current invested range total remain target and investment initial in a our and projects year. maintaining of Also quarter apartment rents the first have million to $XX we $XXX the our of $XXX we Colorado million of million Park for in during being are is early redevelopment redevelopment activities of days we in progressing homes. preparation Northern at the the a City. California development delivery prior XXX Flamingo began on Redwood first investment underwriting of at Bay in approved Miami construction in start and both summer. property in XXX phases Denver Leahy Chicago. Mosaic ground for over community and Community at at on process the projects Elmhurst, located of pre-leased up outside our with and In of Park ahead this unit our of XX% at construction vacated our and the Illinois quarter, XX

of constructed a The repositioning higher Aimco Leahy early dynamic We free be originally in to million community $XX homes renovated one about IRR delivered residents in are redevelopment in the XXXX nearby world’s invest in income job the cash who most work flow of expects year. generate next the fully three is beginning and will to markets. attract of what X%. phases

the pre-leasing of close-in quality of last Ardmore, Philadelphia City. mainline suburbs asset million closed portfolio property of the in heart The and in a the and Downtown To-date, station process. commuter One leased attracted Moving just the from Philadelphia’s to access fifth newly have is ahead rail containing premier final of $XX acquisition purchase announced constructed underwriting. the Ardmore mature fluid about year. location at to a the during rates Ardmore, Center in located two included acquisitions, for we of our our one and blocks One of April homes providing residents direct also XXX property XX% One has we community and within of apartment

NOI originally to acquisition reported, One NOI of the the of on be our than Philadelphia expected approximately was yield At projected price last X%. our success, time an now allocated acquisition portfolio expect at announced. leasing was we purchase stabilized more to yield Based Ardmore As X.XX% early year’s X%. with was like teammates north produce their Paul to Paul? the Financial Beldin, turn over outside Ardmore Chief of thanks our stabilize all to pursuit now and the One to hard to I opportunities inside Officer. yields continued of their call value-creating portfolio, on for work would and And my both

to changes am Wes. our and sheet, first financial going quarter Today, results our to and cover the I you, balance schedules then Thank our guidance and reporting. supplemental XXXX

balance creates and and liquid, is opportunity flexibility. our First, sheet safe which

on of metrics we to free X XXXX XXX neutral required trade basis cash quarter fourth basis. $XXX At which of a XX free sold trade and improvement provides Aimco This as on to to sufficient more neutral quarter, believe repurchases. offset of basis yield and free for funding yields real a rates first is communities to spending generating complete is the yield appropriate focus increases paired return returns Aimco, internal internal flow million paired these The proceeds the cost by it leverage cash paired point cash rates capital NOI share flow ownership. depreciation, points. trade cash flow free an is the contemplate flow very During

basis during balance our stock Aimco’s XX of debt million shares Aimco’s increased this with more $XXX At on by pool size May Aimco million unencumbered preferred first $XXX our previously prepaid on that preferred redemption of this reduced par unencumbered of maturities. of Aimco to A leverage would our activities lowered properties our capacity Following and April total XX%. the debt our $X.X notice the credit and the net of callable for gave Aimco cash value leverage shares, of of The the XXXX added announced, of by the XX. facility. than pool past Inclusive lowers million $XXX quarter sheet cost leverage. of X, sales million, hand redeem by in borrow X.XXX%, And the of $XXX points billion. and ended revolving on $XXX has property XX in to of Class months million Aimco perpetual a cost $XXX April, as Also the redemption the repayment after when the at on we million

costs. on AFFO for of G&A the expected due the operating by related guidance midpoint and was and to his financial to ahead than of better share, quarter, timing per results of the Next $X.XX Keith team results $X.XX

the in the same-store we we at our time. but quarter results guidance, well-positioned ranges activities guidance two-thirds is midpoint us front maintaining the our initial and leasing still expectations as us. Accordingly, embedded have of are approximately of ahead still enter we of XXXX summer leasing the first year with important are this Our season young our of in

and adopted Finally, amortized. has change changes now and Aimco to deferred is immediately most its supplemental costs resident accounting first are made to on how that expensed changes with obtain the few are standard substantive rather a quarter incurred indirect costs The recognized. release, Aimco than January and that schedules earnings leases reporting. X, These

between comparability FFO has XXXX requirements. pro be forma to Aimco consistent periods, with recast XXXX’s For accounting

call, and there this $X.XX As pro earnings mentioned fourth year is in AFFO. our no the impact our forma reported change to quarter is to of FFO full effect

trailing we four. is We believe Additionally, or release. calculate quarter Aimco on our definition highly turnover single can detailed because turnover alone presenting the than quarter A found basis be of a the this seasonal. the than of presentation how current meaningful standing by earnings XX-month current more glossary quarter began turnover metrics, is rather in multiplied

XX, for in declared the quarterly of Lastly, increase share XXXX. to This now per of Rocco, will is the With two quarterly XXXX. Board Please questions. first for a dividend the Directors Aimco’s March the for paid limit cash question. a quarter you X% ended I will to questions dividend in over up queue. call we turn that, per time over it the open $X.XX your

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

the out start there morning I congratulating taking quarter will to good for the year. just good by Hi, on questions. nice and a start and a thanks

the results above what achieve Paul, way, what another really maybe your guess hesitation touched same-store XXXX the but contemplated above your guidance, in on said guidance? NOI So, I and had and to just you strong why the this you would Aimco low with ago, growth first raise scenario same-store remarks its of revenue a midpoint end minute in under only prepared range? quarter your

third that The is we’re we But you of the for It’s question. still a facts Hey. for range year. our Trent. something activity appropriate at. are way guidance through the stated. Thank believe leasing as we looked that the only the

And so, we’ll complete as of that business, we at update more time. our guidance

alley. like control seems initiatives politics, Okay. across your and are the up one And What you, on question Terry, country? rent your swing right it this are your with it’s thoughts sweeping interest that affordability to a in latest

it’s that market in political of going discussed front the what country free it discussed. been of that on not market, of free in success greater a the in and think it’s discussion. Oregon I quarter be still is at notwithstanding statute, the Albany. worrisome this during nevertheless But should of our the It’s discussion year government surprise it That benign, rent I Well, and a in fact production. would the And and it’s this wealth control ballet of but that going it’s and there fall, in And, step year. don’t which of learn true is is to Assembly. pending versus that forward more efficient a where in fairly state role it’s over the direction. think Illinois California, New Colorado, very in raised the adopted forward last York, be it’s won’t going our course, General fact raised a but that the box it’s again also was been this but subject and a

terms, on important appropriately. to on bit depends controlling with it’s our little our a capital but Its and the exact it the of ahead an issue. allocate So, go nature deal we’ll impact just business rent

Thank floor. the much. Alright. you I’ll very yield

Yes.

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

good morning. Hi,

of spend. per is you the was the give think that math little just unit. if redevelopment. the renovation unit a all-in per under sense on of then $XXX,XXX wanted $XXX,XXX little my Leahy wondering I of touch one, better And if light is And First scope to a us XXX I in your could right, basis

curious just California versus the stacks I’m that in market. replacement how cost So, you Northern up think I guess

one. that It’s Hey, take Wes. I’ll Austin.

this density property. from then downtown and we located is, land down And First that off, instance three values. about City, a building fantastic it the Redwood from the little on It’s or building so in mile more bit high tore current be particular a the start improvement current very the if would over. Stanford, miles allowed location, has in

really so And led a repositioning. to us comprehensive that

appeal to produce the a effectively that when in brand So, a going done. the scope property is customers and new, way something would should price we’re that

responsive? be but missed, the second to And investment there so, there I which look guess your we and that’s question at how part I’ve may was that

I curious. Yes, was just

market. around was So, up for that, a would curious giving could you in versus helpful. cash-on-cash return replacement that that’d if also $XXX,XXX you an basis I little under you be property unit the of I all-in then was provide the think and stacks how And for be that cost what

one. to I on basis yield, surely not Sure. of to looking are there. in X% it, still of At all-in yield $XXX,XXX, about on an we value a discount and including a the at you’re if think bit at cost that land you’re replacement a And close

then at just cap sold point And a at X%. million, over a this cash little rate million about $XXX to guys over you free have switching you date Right. $XXX of there. flow Thank year to dispositions,

guidance, $XXX we in as we embedded or cap for about the quality think those should million So, deals about of how and remaining the timing? the then rate think your assets

is Austin, Paul. Hey, this

evaluating the are sell the for we going of year. the are We remainder assets that to

go to as part about plan. you million mentioned, $XXX still we have our As of

timing, in similar subject million says exact to to not number that fourth. change, second So, quarter, and regards first cap $XXX significantly from but that And cash the in $XXX roughly in experienced million third vary rate would quarter. a the the the in free in expectation it’s flow the then X% probably here is the our

Great. Thank you.

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

XXX of throughout Good What’s guys. that magnitude turnover, $X renewal given Paul, there that NOI than XXX basis the rate the basis annually turnover? higher points on your you morning, commentary saves Given should that we rates, because been impact million? to that about? are thinking points still rates year what’s is million be positive new the $X lower

a different Rob, centered at And the internally way question of we that good in often about and really it around in is ways. it’s think looked we that most number have a the differences renewal new because various and our customer initiatives benefits service of a a the turnover, kind and aspects lease all between the of lease profitability that operations and of undertaken. contemplates they have and our

so a And a that XX% more lease renews broadly, XX% to is than lease. new profitable

And incorporates downtime any well? as that

loss vacancy expenses. incorporates operating It does. It and related

that buckets performance store quarter performance notable the over portfolio you Bs in question, Cs. those second the months of the of then any a between Keith, supplemental trailing the sort first provide And or in and same breakout differential suggest guys As, or XX% year? XX% six Okay. the XX%

we we we over the of use of Bs this just moment. Rob, XX quarter it when it, have as basis about the what’s past transacting look sort price lease outperforming points. at in As, like barometer we look that by been best to new the when at And

out is property. Now, that what by really I by and point becomes varied also would market

So, depending different that’s or overview. Angeles get if or it’s with some Los that, Boston, but in you variations the Miami general

Okay. do been out you in you sort And while What forward the that now. consistent for of get portfolio Terry, of weighting wise? guys maintaining what’s for Cs? rationale for that It’s a pretty going XX%

land Primarily it’s future bank a for redevelopment.

current don’t we that so, attributes And rated, or rental captured C. are rate. But there why that’s value some it’s the to it’s as think that properties aren’t highly are graded in

Thank you, Okay. guys.

from Wu, Lynch. comes question of Bank America/Merrill And our ahead. Shirley next today Please go

guys. for the Hey, thanks time

you’re side? that does using Could that has talk how [indiscernible] or at your trend or the number your of some drive maybe stay high XX%. of to very been and your about strategies So, length occupancy initiatives you of kind

Keith. is this Shirley

about to first stay. answer the of piece second What Just of question? sure heard was I part make I the want the length I

curious leasing changed I guys was strategies your any the had you different drive of length initiatives side on to or if stay? of have of kind new

Okay.

our we the stay, if to of creeping number. it up go length and been reflection first So, turnover of we’ve that’s really seen a

us they that day, at with to Ultimately, time, to and in way longer of turnover at its average our periods customer you pieces about direct serving our special we stay So, reflection end the residents. becoming that’s and number it’s customer a the, satisfaction our found stay if us ultimately will more-sticky and of with over think the them our seeing the also we look it are to the we’re which occupancy create and looking way has a daily through think we’re experience those longer increasing. residents

Okay, thanks.

And so, we’ve the job strongest about your what are this seeing that a was about could little Los market? one been the latest next bit weaker in that growth talk that quarter, Angeles thing market, or hearing market you given of you in

can Shirley, performing I I An could our economics can’t you city tell side really at speak to in have just Mid-Wilshire, the but tremendous speak about are to a I level. located on the the LA what buildings. those that west been of of

of very there’s is we’re while Our nice occupancy pleased large. And the is seen Angeles we’re located, Los and what quite we’ve city north sub-markets say and that, where has strength. and been XX% I’d some there’s within different

Great. for color. the Thanks

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

the on in same-store same-store impact change units Thanks. pool It of quarter. looks the XQ? of revenue the X% growth went up sequentially from number last What’s like

same-store of Yes, the tradition, through as beginning Nick. expected year. activities is going year the pool our Thanks, that’s we to update for occur the at the we our

to same-store redevelopment occupancy in primarily ‘XX to sales pool, NOI that out quarter Indigo five lease-up of it their due in coming were And and of their at did expected from added then communities, three removed eight and activities total and XX that communities XXXX. or stabilization a the in here due communities first and to their Canal later our we and redevelopment either so, One expected that others was sale what

in pretty of is growth the pool, actual rate in lot there the the changes And so, the impact although activity of minimal. a was same-store

revenue we and XX-basis As that was we about estimated impact NOI. numbers, to the both look point to a

discount special Thanks. think is that if the you complete the versus do execution And sales, your paired dividend, to objective? of appetite how to do reverse overall what’s then buyback split, the trade trade with estimates? And stock now versus your stock at continues a more the NAV the about your

happy we’ll And again. own that. cooking. to is if I’m to the right, Nick, our answer like price We buy eat

buyback? with So, execution on you’re happy first the the

I think do. I so.

base was And split we’ve Nick, we of stock to allowed that And this has happy is metrics investor the primary for goal that that received the dividend our just our fact appreciated the in the so comparability jump. The positive. quite of and feedback easier are combination Paul effort. stock have reverse they that from been per share and our achieved

Thanks.

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

your On the up growth new new what Is why forces, reason you. it your progressing Company-specific reduced had turnover would improvement or the including it you lease supply one throughout bringing number market year, is market on that Thank to rent? you happening? rate your attributable say is this is

John, start anybody say bunch see add. wants to and a it’s combinations. I’d if of I’ll

is revenue. that the saw first we The total

one occupied, some there’s can make of different that you into just levers Certainly, occupancy. and get rate come thing choices gives potentially you lease so when So, we push on decisions. highly you more or that particular different rates don’t just lots how [indiscernible] new is focus that or

out some is seeing the that a come it. is where picking and good spring That’s leave as of seeing up, winter also would months, We’re that’s of that growth has you the been season we’re it acceleration. I basically nice part

is would what this it Terry, what two to add John, I I things. Yes, add would is

And it’s it’s the are better provided consistent fact years accumulation whether or us. many, do so following just upgrades getting spending of we First better. is, activities, or condition we’re over what the properties for at capital of because many in better all good secondly, team. the Wes his of And the by many getting individual teammates individual is the economy all, or the quite and win there’s of we’re and

it what in changed that acquisitions just per the cap mostly side. your past you’re like And price the modest are you percentage some you buildings that your pretty upgrading then have the and surprising also, And hasn’t been bit disposition, it’s unit and was like share Can these was? looks fees, little price. a the looks rate it A on on some selling then given developments you’ve of year

if on scenario you great So, can comment that be well. as that would

and we This I comment with a than prepared the net I’ll sales, pricing and turn better in is on over mentioned portfolio economics in was economics to our expected remarks, in about else for Paul in and value. to the in bit mix. will we The the then that jump were quarter line as somebody achieve it of little the our asset fact what included first

so and rate cap flow a those prices rate X.X% to of of X%. cash NOI sales translated an free cap And

rates Well market, customers. could individual in rental determined We paid is don’t if of being by here. and John, the I by by jump the grade That determine grade the C.

as can but a a a use So, of a apartment, piece land. rental property it be as its for C current A be might

something have, so, Rob what category is most for answer as we in think my the what maybe to that redevelopment. C future would of held have I of And earlier, we being in said all I be

B a it typical into C is But year? over the to for a fall

eventually Bs Cs. become are changes those eventually – Yes. become start but and As be some and may in property names, over in And a mix, there that as lifetime –

Sounds good. Thank you.

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

starting comments disappointing for markets We on market foot and April. were Alex any is off lagging This leasing through for to thus page Any Drew. leasing morning. trends great regarding peak a far? the Good or jumping off level hoping some season

also that, course started is Area and it’s and playing us. D.C. picked just I’d to about we’ve good of of that. front in this in feeling continue walk we a been I’ll it’s I you lot we’re early see through off days strong. of would of the has that Listen, and say Keith. Yes, that up Outside it. has you really, still work that out early tell really strength well, Bay

one-offs, give the Can just kind constitutions Understood. what you you across varied were all in And profile are quality assets pool. us could coming asset to just of sold NOI kind assets cap back and those and – if so, that any of those looked rate portfolio kind how of disposition age like? assets’ and

is of them the style John. They as deals Alex, communities. composition is, generally are older, one-off generally garden were sold they this and

had that’s old, older I most suburban are garden D.C. sold, communities. think an tower we one older tower of that’s in but them

in you most say would X.X% And of ballpark range? were assets of there a or kind those of that was the

tight, Yes, tight pretty in no, pretty all were they that.

for I all taking Great. That’s got. questions. Thanks the

next from our And Please question today at comes go SMBC. ahead. Rich Anderson

Thanks, there. out good morning

season down solve I bit will getting good? you question So, while total rents a you to to see push levers a heavy the for occupancy said occupied, is when to Keith, you revenue, you. At leasing you XX% that drift know have but it reasonable is assume into heading

Listen, in that think our know the the second leases Rich, is, is thanks quarter. for question. the expire majority I important of third to what’s and

use some work the each or and that total transactions we get of renewal as occupancy peak our all it’s sure levers number season will frictional recurring of solve that’s revenue. activity you we and or through So, work the whether just to to those make new way that vacancy by they

Alright.

in all to are So, the to these your Philadelphia stay are more trade there the think and strategy, still Aimco at with you fixes unencumbered that communicated are entree, wondering redevelopment, it’s that of redevelopment now, you XXXX? increasing Echelon kind just wondering, year, follow-up paying it things that. producing improvements. to whether some going range could sort paint question you’re sort margin some top it’s later like be maybe And that the right unique of this is, what at growth past. you the you’ve degree pool I’m beyond for you, deleveraging that of also that guys But I’m paired you’re then earlier, described improved are for quality income you of unique to whether unique to you, what the upon same-store preferred off looking in I of picture the at guess the characteristics leave second I’ll Aimco

want to answer what that, because the I your partly going it ask say is I’m to opportunity Rich, voice. for to to a hear pleasure

have to back. glad you So,

It’s a pleasure [ph].

Yes.

hardworking but list give that’s that’s is are that I – to what Aimco hard eats the a is today have the we is something and actually think And cohesive for for your think team culture at which doing respond important, an talented get people didn’t we directions. from culture. is exact look and a evaluators breakfast. that And different I very we there the what remarkable strategy We forth it include foundation the highly what And and was productive. But gives a is company accolades it. to and different and us of so that think for opportunity different at to lot team work it I we measure metric to try who recognize and on.

other that growth it you and some If be of I’d at he you which only against feels is at at, the first in X.X% way. to look look items the listed, same the XX% I at then Keith and only you is – will operations, occupancy NOI tell

we and redevelopment, we’re in different opportunity-constrained, that all that’s In a where grow beyond them. will can constrained team increase matures this is to management team, I see XXX develops, Wes capacity and building in his have operations as And think things we to address built year. the do more we our not that continue of working So, we we’re better on in are by them.

us of flexibility. in good the sheet, balance terms shape. has very lots In We’ve got put of Paul

entity very very have balance no limited non-recourse, We a sheet risk, safe risk. primarily refunding

will time – pool, will in be today difficult be enhanced to of so a both the the us the unencumbered And give flexibility that which process future. increase might either or natural in but that

I market think list what that opportunities portfolio are to in I in I skipped management. And fairly that as was team on priced. focusing more that over anomalies fully find is a think we a

be And working anomalies could that’s so higher we’re have what volume, profitless, more and on. might to growth but for it’s say, potential not for that that look the do to

much. thanks alright, Okay, very

ahead. of And go Jefferies. our from next today Okusanya question Please comes Tayo

didn’t markets, about any curious deal. what you you looking what quarter, just do during acquisition your specifically you’re to kind A kind in, be sense. acquisitions, a would because pricing? you you’re Yes, whether think over although what When good of of it’s assets it’s to further trying – did the morning. Just B In specific looking you interested regards general at of whether outlook, assets the to get and subsequent own

this Terry again. Tayo, is

cash We’re and flow basis on a IRRs adjusted free and of leverage looking – the for course neutral. highest risk

many of today’s very and is could if where fully And money very of there’s question it, are we inexpensive lots that’s So, – and a assets priced. market, price. in

acquisitions average asset then we at our so, above behind at is think a that much see look class, you for is And is And of create the particular looking would there not so particular growth. each but aspect for year, them. there last opportunity in where are the different if in ones some I reason you’ll

Right.

– creation we there that we think so when bought could that the that advantage, Wes’ was be identifying value which team operational year was it partly an And a Bent could Tree ago, as its operation. of confidence and in come properties as those not increases predecessors then achieve Keith’s that results team were having our significant good over in and the neighboring

that look Dranoff developer We of the and what the followed scale opportunity well in placement a have a the transaction that transaction then at others equity to in necessarily forth. do OP market excellent transaction was we was price market a in Unit and at buy don’t Another above was that like. and very so the

plays covered love We might there, acquisition opportunities. don’t. opportunities think but across different depreciates of out just over our for for what we interest. look all be be for looking we wouldn’t it buildings and land it necessarily we’re one because time, And So, land

Great, you. it. thank Got

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

backdrop Thanks. Terry, thoughts responses on the across political I’d one issues like the to portfolio the over on of here to XX Senate in go changes XX, whether your back Bill to demand out call more perhaps get your affordable Curious years? views to the versus supply that next your and X, housing productive California. climate

in the around that providing so forth? Is any that Bill John, transit incentives current with one for stops Senate not I’m familiar XX is versions. and building

supply they’ve single-family down it? I expect but zone it to neighborhoods, stops, around transit Yes, barriers also broadened so in breaks apartment

California with stalled California not there familiar of what particular. in guess growth. population high of would work. economic the I’m is high cost at familiar is – even I in levels of a burden Yes, it what regulation, I’m regulation – that, with with a I growth on But generally bit the is market shows has housing of because of and

that deregulating activity it that’s a most California That’s just of you And work maze by And development way for to they’ve housing locations. have so, least in trying on is, do to markets chosen what to those one regulations, restrictions that attacking to – people. if find the even of governments, the regulated with specific at those most create will. in they’re the and

And for or the our the so for mean $X that be it’s economic Aimco very – does that’s in investment $X and positive billion think it’s end it’ll be in for probably growth billion positive positive better. I and California, state, will because California

guys Okay, or revenue $XXX capital million makes for the us? believe in spent growth XXXX Could is quantify last lot year Paul the nature. revenue you which lift I same-store of on generating sense. that you a enhancements, Keith, on

spending where year last lower spending. Hi our encompasses our is range that. take capital million, wide is a we bit $XXX range of I’ll midpoint spent John, mean, of this in about I little Paul. year a this that. It the than enhancement

be investment, to – there’s this operating future of that also is for elements think provide does then think there’s our a a that business. us our ultimate profitable allows that’s CE the because revenue it to And expenses. reduce and goal an good more which spending investors, element for entity everybody’s very allows in of operating growth is it I So, we us

benefit benefit year-over-year. a we regardless to because the not What results, lift XXXX is So, a say spending get shareholders really a is the our get and of similar the I would classification. there’s

run it’s So, if rate, will. our you into built

on understand the Okay. much run of if how had aggregate How lift type years? just a last rate dynamics, not be over not several spent this I rate, the the you year-to-year – lower run capital would the

do hypotheticals things didn’t done. that because other Hey, to we we there hate and could get have that we do that are John, I what into say didn’t like

So, going just to I’m away that. stay from

X one G&A Last good there kind may, inflation rate the are if of or next to X opportunities I bogey understood. Yes, a years, to run is over cut G&A?

all John, because adding company. the I hope opportunities to it’s G&A, there’s connected to value to increase

change for in business will so, whatever – are women of Aimco highly team in that it the that, a it contribution, concentration we And appropriate paid could scale, if their on change on they turn men and and on our increase. have evolves, the doing change if a activities, change consequence is redevelopment, in a the if that

something that outside I to would manage that’s context. not of So, want

have and we culture Beyond that a goal frugal. being of general

those think I two points. are So, balance

sense. Makes Thanks, Terry.

Thank you, John.

the turn Terry And to ladies over remarks. and gentlemen, any session. question-and-answer like this I’d the conference concludes to Considine for back closing

a early and of later. hope you thank forward and of I I on summer. Many happy and look wish and if York, you Rocco, you not, you in to you there see we you thank to New Bye. the call. all you I will seeing Talk an spring

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

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