WRE - Earnings call transcript Q4 2021

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Operator

Welcome to the Washington Real Estate Investment Trust Fourth Quarter Earnings Conference Call.

As a reminder, today's call is being recorded.

Before turning the call to the company's President and Chief Executive Officer, Paul McDermott; Amy Hopkins, Vice President of Investor Relations, will provide some introductory information. Amy, please go ahead.

Amy Hopkins

Thank you, and good morning, everyone.

note statements please during be begin, discussion. this we that may forward-looking made Before known risks and may involve statements Such unknown results differ cause and to materially. actual which uncertainties, actual no update duty And we them undertake as events to unfold. refer SEC our risks filings. to certain We these in of available of and can the are page financial Investor website. were yesterday and and supplement, found this GAAP recent on Relations most of financial measures which our Reconciliations on earnings be the discussed our non-GAAP call in press release distributed Participating Executive will Grant and and Accounting in Drew be Paul Chief Executive Chief call with Research. Treasurer; today's me and Montgomery, Officer; McDermott, Vice Officer; Vice Financial President, and President Steve Chief President Vice Riffee, and Hammond, Officer of President Head to turn to like over call I'd Paul. the now And

Paul McDermott

Good with everyone, today. and full for joining Amy. we our which you, results, our line earnings thanks morning, were fourth us released and in guidance. year quarter evening, Last Thank XXXX

the multifamily, results year prospects region. full Our best long-term having in is reflect we growth our transformation into identified as the which asset our class

and growing for portfolio outside we including to WashREIT region of on Washington solid markets. Metro our to plan provide long-term time opportunities evaluating for continue was other first our recent target also much expanded progress the We company. XXXX in an Atlanta result, the and forward. eventful And our acquisitions in Today, in the make I history our an progress, and our stronger transformation a as our year our acquired growth on outlook. going trends. with we update we'll million. operating prospects are performance Steve our provide for of an growing capital environment we Starting and full also will I fourth results and last are our footprint. deployment. an the update, our homes actively property a in on and total XXX in $XXX update Since and provide on Atlanta, for level Metro internalizing plans operations. update where will quarter year residential the our on Washington Atlanta And discuss an update

the $XXX million of during acquisition, third latest acquisition completed quarter plus the Our one our million target. $XXX amount to

deploy quarter of remainder in from sales early proceeds sale quarter. the portfolio first end the by second We of the the or the our expect to net commercial

Our fully pipeline is very year-end up update. active, but market has market the remained new The origination our relatively remains since ramped after transaction stable having pricing natural taper. competitive, last

thus Atlanta markets We are on good some other prospects evaluating and in got forward opportunities several growth process as revenue details well to that We've stronger you growth and our acquisitions portfolio are Durham. that that and acquisitions. have very currently completed are with in and our as of to continue fit opportunities portfolio targeted multiple into in our we as strategies Charlotte well more expand to are The new markets. upon NOI Raleigh will updating far look we generating translate closing performing even strong

are that portfolio research areas we While in for initial us our that it's our days, And sustained our the assumptions. underwriting strong growth. led invest poised to Atlanta is remain has still outperforming early confident in

XX% will strategy lease with which Furthermore, XX% is growth very bring rapidly demand. industries months carmaker which performed grow Oxford, targeted rate our first point, salaries ties come from away has above X,XXX jobs we've it is has a of set electronic a just year-to-date. income XX% jobs bring The lease plant align Rivian, and expected and year-to-date in case recently assembly better operated to to well over continues with the to middle with minutes selecting and workers. basis add they growth performance drive as pay the rate on Oxford over that at new and As of in generated even to an strong Occupancy that future the income building the retention six XX% the and blended our to to of areas the has been range. are are announced submarket directly Rivian that of

which was acquired November Landing, garden suburbs community million, and a acquired each County in an are homes community The is over style X located initial located XXX Eagles Landing that the which for Assembly in $XXX XXXX Southern Atlanta. immediately We X%. of Henry other. Eagles with equates been to adjacent and properties each managed operated comprised independently. cap Historically, of of asset is has to rate Assembly

as significant includes one them of community. economies by our operating However, creating scale opportunity

a As submarkets. that Eagles vintage rent Assembly range Landing our and drive our XX% the of high-growth to price into XX% median NOI B opportunity squarely from to the market XXXXs XX% that and price median of targets through from represents point efficiencies, fits operational with Class points community the which vintages strategy, XXXXs the the XXXXs the and market to growth

County, rents we very rate Landing with new realize month operating are offering. we've to new deliveries we an Henry underwrote. months supply that very property per of are as lease we new date, pricing already rent models $XXX The Eagles lease performed strong as has during growth operated growth monthly nearly with daily well XX% compete on higher year-to-date of achieving three does originally blended a what first it is than basis. not efficiencies in beginning are Assembly average currently and XX% rate our Furthermore, above to have the

NOI Assembly years We generate thereafter. double-digit strong over prospects expect with the Lending Eagles low growth long-term few next to growth

job Our investment strategy targets markets. proximate growing strategic locations to

to are in Eagles Assembly via miles Interstate within As strategic a of Southeastern comprised retail core and Georgia. management neighborhood in XX with low and Hartfield locations south is County's rated who business the located of the Dunsany Downtown accessibility XXX. and employment to is schools nearby of is premier while afforded the e-commerce the urban XX% McDonagh, access providing interstate more and and chain which drive area population highly affordable makes U.S. family offerings a attracted to Henry of The north proposition yet to households airport I earlier, high United the Atlanta's southeast immediate key two-day one mentioned of supply States. Henry units in quality with the approximately connectivity and value Landon County, by it core location

also of acquired the in products Over Atlanta approximately rent apartments initial past for located approximately averaged X the submarkets million, the five of growth Atlanta years, same-store Georgia. an Atlanta, a for style X.X% Carlyle average outperforming has February $XXX we community X.X% is Spring 'XXs rate with market for annual homes product Sandy for which desirable all Springs, rent XXXXs Sandy garden overall the growth according rate growth on of vintage X.X% in and all XXX outperforming to the RealPage. X% of submarket cap annual

As market a it the XXXXs value-add NOI median value drive community to squarely XX% strategy. vintage fits renovations, B of and price the add with growth Class into opportunity a that represents rent point approximately through our

opportunity our Our add in renovation homes, for of of the ownership. year two value the XXX program approximately of set implementation a includes to begin

not as We supply returns does these submarket. compete renovations Sandy on Spring new are to strong the positioned with generate in Carlyle

currently a over for providing an active proximity Fulton deliveries we Downtown known the largest micro the concentration by jobs. in its Sandy The Fortune of price $XXX many companies a attracts rents is United entertainment location, rich largest of capitals. sought area Atlanta, offering. families County pro-business one in of seeking economically and of Georgia Southeast residents in state and have location suburban of point States quality the businesses Located including and monthly alike. after technology is XXX environment New to superior are it third Springs making above and that north average and professionals the life, is the monthly that the most

via nodes as access other connectivity excellent homes. XXX spanning is Additionally, of I-XXX well. Built quick Springs of primarily and apartments and XXXX metro and approximately provide Sandy throughout XX in town Carlyle employment the Georgia comprised and major acres, to features easy Atlanta

years, growth the all which X.X%. rate rent same the five store at for product outperformed X.X%, product from XXXXs overall annual Over growth significantly Atlanta has averaged past submarket

We expect driven to renovations years thereafter. value-add above-market digit high-single the by next low growth few digit Carlyle double over to generate with NOI growth

into we our XX. last out Our June laid transformation webinar on squarely the that initial portfolio strategy fit rollout acquisitions

Our strategies and submarket market deepest vintage represent which demand renters, of price mid-market tailored target with to and curve competing by to the market the are supply. designed without point each each and sections are in new

or We to creation passing lead approaching each do fit opportunities that not NOI scale are strategies shareholder would value and provide upside our will our platform. long-term as that to thoughtfully we not on growth opportunity

position Virginia and used top pipelines allow to portfolio in in priority shareholders. successful have very years are Northern footprint diversifying While time, they growth good in Northern been sense, value. us past to at The continue opportunities over That are makes diversification we be our greater explore geographic acquisition in we greater said, in we few to strategies our create a our and Virginia also we've we for growing seeing in is value should believe the markets. will very this prospects the portfolio will new evaluating investment target and a our and scaling deliver our to grow expanding

environment minutes expansion on like few and Now markets. Washington operating the I you would to Metro in update the a take to our

seeing hit of it attribute Steve with Durham has on is effective positive X.X% same lease the detail Overall, in XXX the is trade on basis. grew the outs will the tailwinds in that submarkets. accelerating effective call. our X.X% quarter market year and blended strategy, Charlotte the fourth lease climbed December an prior XXXX, record-setting to in Washington to respectively, in Metro also Metro to deliver some the Washington reported Washington pandemic. XX.X%, that and And points by trends to blended grew underserved areas our which year-over-year surged are into Annual migration to in other We effective more XXX XXXX above Suburban continues during effective increased demand target we XXXX. market rebound and are while affordability been apartment quarter strong Metro compared of Virginia averages, Washington in fourth rates demand discuss period, rents while to in quarter were store December. our metropolitan harder all-time fourth and Washington Metro largest growth in market that region. Unicon carry been formation these annual absorption growth posted average, Atlanta, we was high three across rent less Year-over-year Absorption their Southeastern later the RealPage led data. offers and demand in third Year-over-year investment to annual has stronger believe five-year While pronounced an according which that over XXXX Xth quarter Charlotte the the will outperforming us by at target the markets, Raleigh-Durham's the drove from that rise as U.S. than absorption. Metro the X.X% effective we to by XX,XXX same for as the and Furthermore, markets quarter based on units our renter basis in had this Atlanta nearly cohorts XX.X%, XX% it XXX% household XX.X% Washington respectively. at its Raleigh Metro rents fourth RealPage. highest market by topped and during exhibiting five-year

update Moving prepare to underway we portfolio to our to our scale level the and on are internalize transform an on, that property as I'd operations. provide infrastructure like residential efforts

residential selected growth. our our on our that initiatives phase technology this program the from technology determine our plan design each And phase wrapped core last evaluated will year. ahead operating model implementing to update, our model human finalized when We we resource our branding summer. have go a strategy which optimal reshaping platform, major up to structure we initiative, are ability cost of over forward the and impact technology to the operations and background staffing research to out our for we core our our of performance of internalizing significant implemented technology drive scalable a working platform defining several later level better Since property on roll

new Phase level our on-boarding core our to starts which and of which technology XXXX model supports building late platform, website. property X systems. the our expected We X, and our a completion and launching in moving are incorporates our strategy in transformation that now with our Phase operations our resident and brand includes operating of implementing mid-XXXX, into focused launching internal designing project,

needs that process to work the of majority to on-boarding vast the expect completed done We prepare the be year-end. be by to for

significant certain Following support a operations benefits the of complete to as our for value level The benefits compete and which to and functions, increase internalization operating expect property optimize we enhancements shareholders. realize ability these the create our model we long-term includes our operational centralized platform, will and leveraging our financial efforts business future will expense marketplace in to the base. and scale from for

operating our Steve expenses, over about will we more transforming it the business. the to While continue near-term the platform long leverage of this operating term generate provide later impact scale will grow these details efforts more call. will as impact on and

Class multifamily our BREEAM more we in bond green Steve, call alignment B have for completed Before to and multifamily The recognized was that a of over the United together for I'm certification X BREEAM industry which create I the multifamily opportunities allocation turn WashREIT enhancement for to and our we first the assets the been milestone space. by marks the to pleased achieving of States. ever with BREEAM for in successful sustainability in certification requirements, share efficiency as work

remain we properties, superior sustainability all standard new WashREIT's development efficiency bringing including transformation, our and our to of As for acquisitions continue up portfolio for we residents. and committed to performance our delivering

year Now and turn I'd like guidance. our operating XXXX the outlook call and fourth full to results discuss to performance, our Steve over our quarter and to

Steve Riffee

Paul. the at changed to roll has everyone. transformation since and facing November this year, out to last also when pandemic preparing from time while were And lot lows A good we headwinds. were February Thank you, morning, our

summer certainly into seen amount very Effective lease seasonal occupancy and XX rate and that historically Our portfolio seasons, growth outperforming of boosted being rents strongest strong we a as our historically is we've head are new issued leasing well spring years. limited tailwinds is performing concessions normal that by the the and patterns. in

the signed being and growth during roll were are Our effective off rental lows is leases. the achieved that as by market pandemic replaced leases rate

we the monthly momentum accelerate have into growth average strong expect We spring. will increases keeps as to This us throughout in XXXX positive rent activity that growth XXXX. NOI effective confident into

with signed year-to-date earlier, our portfolio. Effective our no moderating. outperforming was also Atlanta are momentum region lease portfolio XX.X% our our highlighted As growth leases we and for rate is lease Paul rate for signs that new for XX.X% same-store

trended rates, NOI a recovery of that producing opportunity market through Northern while rate seeing to under Metro I rates more not pattern has trend which to which still the urban the the late fall that surpassed and the lease we the new XXXX. noted creates growth achieved winter of as we're basis, our very earlier, months. is on of quarter-to-quarter positively Washington provide season a as significant bring tailwind operating portion during are While rate a restrictions, small has portfolio that growth. to The will renewal is leases up a leases used XX% to Atlanta our renewal lifted. the retention. restrictions Effective have into is rate portfolio. X.X% which grew comes same-store those strong Virginia, been from Furthermore, created without strong XX.X% impacts significant our continue expectations signed timing strength stronger our our and growth is rates Market how was renewal portfolio renewal to quickly rents for year-to-date for for our

growth just lifted some the XXXX. same-store March However, later cap September of on provide with our renewals. comes from carry XX% of should comes the were NOI removal remainder from this NOI additional Maryland the we DC our recently through renewal where and of year for are The Therefore, X. into renewals capped rate still restrictions in

no urban rate And for the we year of strong opportunities new the pandemic occupancy urban as our catching the mode. targeted strong load market. portfolio with said, pre-pandemic this of additional occupancy for will portfolio above balance spring our we see level XXXX. portfolio concession continue us opportunities, the running and growth growth very rent expect months. believe be rates ahead revenue I while with a lease suburban rents. are We over and is are grow above seeing the over carrying essentially recovery now As Portions XX% into our we in to we still level, greater approach to up remains to We're environment very still which our lease allow strength are retention, in and to strong, to growth creates growing,

rents We our throughout capturing rent but most market Virginia, growth where expect to effective year, Northern achieve also portfolio this the is not of are market particularly in by expected only where additional located. today,

have steadily requirement capital As invested you near may XXXX true and any growth recall, leased throughout without we XXXX fully have additional trough began the delivered in pandemic. the Its as up but to We growth year-over-year attain unfortunately the into it. of year-end. teeth stabilized it it represents

on to same-store in be adding $X in the up reflects few NOI has a of rate occupancy trends, driver NOI strong growth Trove expect growth and key and million XXXX. the we of over our months. approximately spring much million to into at greater a XXXX next with NOI strong for Trove very XXXX $X of years, addition of XX% XXXX, strong In growth leased heading which and summer XX% top fully stabilized

during renovations X,XXX and completed we programs our return ramp product on between renovations, on which the ROI represents approximately pipeline from a range. year have our is that we and portfolio, properties this renovations the units increase those to in within renovate $X rent XX XX% a After up, properties we expect A an million average the rent based offers room with capture gap on full significant achieved XXXX. and In million current our units spent of Class a targeted represents putting XXX otherwise. a to XXXX, gradual would above of we have achieved and pandemic, what hold During year across the increases XXXX spend on $X cash-on-cash that approximately in over are

add believe renovation our on pipeline units further Southeast, years capturing doubling year into expand the strong growth very growth into prior than the to to as will growth renovation our from investment timeline and continue That our our rate said, are we renovated we we create additional ahead. thereafter. more the We are lease to extending

Now with or diluted a sales The net loss gains due performance. just turning in the diluted were FFO G&A fourth fourth in year on diluted $X.XX but was to of year. our full to on line Multifamily million range, to to XXXX million basis below in for period. is per same-store $X.XX X% in compared that XXXX. the income expense was partially increase a due our X.X% the prior Core share, or a our per recorded tax $XX.X share NOI guidance prior compared net XXXX was which the share year quarter. asset the during Net during per executed $XX.X to financial the midpoint for increased cash quarter slightly $X.XX and

lease and Looking pandemic move-ins significant for higher basis, same-store to a rate capture continue retain quarter fourth on Same-store taxes comprised compared by the X.X% same-unit higher And higher amortized in be strong the rents to off. than Same-store blended X.X% NOI renewal than the the to and expected have at end. renewal lease took basis to continue exceeded lower rate due outlined expectations year to forward, to when winter even during expenses. NOI the expect cash so year. allowed this grow months lower rate that a which the fully year granted high we trend X.X% declined The more growth when rates growth this increased us should to occupancy I was fourth quarter and we a during lease into of quarter, to through far lease renewal XX% on to driven effective midway revenue increase This ago new demand X% spring of XX%, earlier, as greater. strong us Retention even rates, expenses rates grew during Same-store stronger by during growth. concessions begin be and of allowed turnover have so during burn period. X.X%. the very XXXX have since place our until cash

occupancy grown which XX.X% represents We of as and XXX continue a value to of stands lease over point institutional lease tenant and of have XX, average percentage Watergate XX.X%. The year, to term year-over-year base Watergate create basis to leasing opportunities we the to continue iconic by benefit December a from owning at now steadily high With course operating X see increase. owning the XXX quality XXX. and and weighted an years, status,

the per through our the further turning that ATM be side, million grow us our call, remain positions we average creation we will allocation multifamily On And our capital our year. opportunities. on now share strengthen financing our $XX.X last program, as of to which the an value to further at $XX.XX issued to able since we portfolio. outlook of execute for confident balance We price

FFO We per are per full range $X.XX guiding share of to share. to a core $X.XX year

to We and of expect XX.X% and for same-store NOI combined X.XX%. to growth NOI between growth Trove X.XX% between same-store be expected multifamily is XX.X%.

the expected $XX.XX million and between Watergate As million, XXX of true I which mentioned of which year-over-year was $X and between and Trove represents now range in is to fully $XX.XX Same-store other NOI. Trove, consists approximately multifamily and Assembly the Sandy Oxford, earlier, on growth $XX.X contribute investment. Landing of is Springs expected of million both $XX million. Carlyle to consists of NOI, NOI, invested years million Eagles represents same Trove which Non-same-store capital

integration. full $XXX X approximately closed additional and mid-Xx basis. million million future $XX.XX expense range invested, range on for approximately on X%. to between and an the expected acquisition excluding rate G&A $XX.X million And between expect range a our Sandy $XX.X fully and range million. the FFO of Springs $XX.XX at for platform of impact expected $XXX our Interest million is our be $XXX Our transformation annualized leverage and is million cap investments million in to acquisitions. of to Carlyle When incorporates our of February we guidance to

expect And operating AFFO AFFO than costs have strategic sold, will establishing out and million. that infrastructure related of we the as implementation, communities. build needed the all we end XXXX, growth are base, which capital the core the allow the than we And operations point, platform to new dividend. system design payout we internal human a platform At an the doubling from to We $XX $XX count. expect communities in commercial to million manage in are multifamily for XXXX. core intensive assets benefits. level assets, costs will expense unit of in By continue retention the us should late which capital we profile onboard we're the our including G&A termination initiatives, expect invest support range that our that the to today finally, property internally will mid-XXs. and less not different level of be to These transformation, to to grow ratio And begin branding be onto substantially year transformation at our to it's and to of to our

as remaining we the While in XXXX will complete are we for to incur we transformation future platform. not minimal guidance costs systems onboarding only we communities expect yet and giving years, our

property operations operating to deliver internalization call now and Paul. turn level that, leverage will business. positioned achieve model, the with as be scale and efficiencies streamlined back our expense Following operating I we the to will of And to residential the we our rollout of

Paul McDermott

to opportunistic model, Thank executing residential lease on up stronger our significantly a entering technology XXXX in core new preparing to in we our growing as loss And operating and different more focused you, integrating we and renovations, are Steve. are the To platform our Southeast markets, standing operations. environment. much summarize, level property internalize company capturing operating a

that an confident have several of months. with We align pipeline remain this our over we And we allocate active that the strategies. next capital can appropriately opportunities

we growth keeping year on has look and for We to that progress. you updated are ahead our to excited come, the forward and the

Now your we answer call the to open like would to questions.

Operator

At Instructions] Anthony question. this your from session. conducting first question and will coming [Operator Please Paolone. is time, affiliation Your be pose announce we question-and-answer a your

Anthony Paolone

seeing rates? do first My deals, years million is, question in where JPMorgan. trend, talk cap the underwrite million out to $XXX incremental about as And think you can at also markets, those you. you're these as where of X-X-X-X. say, thank growth you Great, yields look in the $XXX new you you

Paul McDermott

Paul. It's Tony. Sure,

the we're individual the markets, to scales that terms just $XXX and really The because we of after seeing the the B would value markets within that definitely Atlanta, the Durham. minus, we're Raleigh virtual I million Class of deals the B that stated going In fit $XXX cap Charlotte say of have we've and the three achieved the just story have -- at A above the rates more the high-Xs. above I of Atlanta look been And add. been story in we're growth strategies, And hold with -- cap but we probably executed say deals have say a X couple far. that thus that a in also compelling very a seen have And I would when was those, we if cap that, rate. probably X.XX% compelling. again growth would million,

the and say, of yield low --- two seeing in three and I digits that of moderating into digits, the would double then I in years kind terms we're think single

Steve Riffee

In terms of NOI growth.

Paul McDermott

after and In that, you, then to thank levels terms returning growth, Steve, NOI of more normalized Tony.

Anthony Paolone

Like -- region. core think do what you. steadily? then pop you Got Okay. your metro like to back Or you with rent growth? there's there? do grow you it. happens do you think do continue more forthcoming it's a to And in Thank What just DC think going

Steve Riffee

And year. the came they rate for X expire at when just rents was just growth certainly the Well, of true of really growth year, we later. post-pandemic all. our saw like for a -- We rent if July our the in so there real we a X obviously, opportunity, implying our market they're own paid lag But inflection of top Tony, use data, opportunities about think for in on something leases terms at current we XXXX. we for renewals, new look

of real happening the the up January November like half and that so first close 'XX year, of 'XX the And -- to to that was what give were concessions to time. pandemic we were at right had of high were we

our basically we and inflection. low probably portfolio suburban say pandemic had we last a our for But stronger, inflect on in concessionary -- average, then environment and our I of portfolio, in that May year. were at in July. to rates already started we So was will saw

us, a ahead good through look lease year loss our at going dates we that's market good also, had got there on to anniversary And forward. for a midyear. rent and top to about that over see concessions the the year. that, is inflection amortization we've pretty So rent burn We of the course of we going trade-out is reach until But that all effective standpoint, ability those off an There's way -- there's I trade-outs loss a the we happen from at the capture that of pretty growth ago. rents us trade-outs to capture. to that think lease

will we'll I -- growth rent some strong right so outs to on and anniversary up have think and we're effective market the trade hoping dates top still -- very that of new And that. renewal we have enjoy

Anthony Paolone

Okay. new a Thanks. then should And new brand a sounds forthcoming, like it we expect name?

Paul McDermott

evaluating nuts. we're right suit kind the now. in to reviewing of of of Tony, that middle branding our kind We're

And so to a think And potentially involves rebranding about mid-summer. something have talk we'll I probably new name.

to out forward look we mid-summer, but Tony. that -- rolling So

Anthony Paolone

Great. Thank you.

Operator

pose coming is today your affiliation your question question. Pawlowski. John next Your and Please announce from for

John Pawlowski

a And what same-store Thank you very increases were until sense capped still with the Street. portfolio. I then rental percentage units Hey. It's for September Steve, much units until, us of give what guess, percent time. on could you Green for are John capped March? of

Steve Riffee

lowered DC our DC, Virginia gotten the And you then which And something of great Yeah, hasn't that X.X to like it X.X Sure. and in was been Northern We've is in the portfolios that's if XX% what's down they capped. X%, is leaves Maryland in region. growth. XX% September. portfolio about basically same-store and starting look at unlocking here March. until in and Maryland about was

So how we'll pattern kind of get that's the for much unlocked with.

John Pawlowski

Okay.

So currently X% all come capped uncapped those -- units of they're and September? in they and are don't

Steve Riffee

up renewals On until then.

John Pawlowski

above color costs. million $XX I an costs appreciate was the being detailed And transformation that the are additional capitalized Is in of there year tranche guidance? then that the on this

Steve Riffee

as putting of in is Yes, technology. million capitalizable about $X the we're some

John Pawlowski

Okay. -- Last last me. question one for

it than to this is G&A today. at expect be don't different you mentioned time meaningfully You

we or or definition minus XX%. curious meaningful? Just or plus of your talking plus minus Are X%

Steve Riffee

would it’s G&A after going get get today be this be to I very similar same. it done what to expect is to we very for within range to a the similar. think I able guidance

Operator

Please your Chris Lucas. your pose affiliation question. is and next coming question Your from announce

Chris Lucas

Securities. One morning, everybody. Capital Good

Just couple of questions me. for a

Just the the year we guidance? of step sticking G&A going the to beginning is a you the end in be of your from costs Should ratable topic, it year? of the Or to fairly Steve. throughout the as with expect year go sort given down

Steve Riffee

the that of there's there's lot mean I you be during out being invested, into But it could emphasis transformation when will to don't some a think the steady going get course I so year. similar see there'll like and then that put fluctuation. a new we investment be changing of G&A, I about and think all the just I be cost think much almost.

our a the we own bit I little hit the that to year. But numbers onetime think quoting had recurring otherwise, higher expect We G&A I of in tax been we than notes. were Chris. would quarter, I because would people fourth top on So that's guidance saw have a in of not that on that towards out end thing the settle the

Chris Lucas

of Okay. you And that at assets, economics stuff executed per you been that revenue us when can the what talk the looking are about of remind what's for then sort And the of then investment? the just with the sort looking renovation And key sort have new you've at? you're return portfolio doing you what on?

Paul McDermott

that evaluating And robust have think to Chris, Chris. Atlanta, the say less say, $XX,XXX X the February And on I a in five economics will say, we've X, Sandy cases, just But that some I'd closer it's what nice X,XXX to we down close to here in took years. probably We're DC, portfolio, I'd Carlyle over should about have probably, to experiencing, return XX. to or been XXX in $XX,XXX $XX,XXX renovate achieved renovate. Springs, mid-teens at renovations we've to door. on which door the let's program, doors continue project mirror average in units next cost, the same-store up we a still our under. a

Chris Lucas

you. then stick let me And Thanks. with

asset the non-apartment decent that year-over-year. be portfolio. NOI in non-core showing XXX, on should given hold thinking assets we How Just some period of improvement of in the or for sort the about Watergate sort last remaining

Paul McDermott

the I see still leasing Watergate off, into lens portfolio. first We want We're done there's Well, of the going the managing this we market the flow, that that our Chris. to XX% constantly the year, of value commend to should you market NOI. be a importantly, look than job into and we whole improve. -- conditions, to think but -- it's should I decision have mean, really that a cash asset. we're They've making holistically, team. Sure, at I less great It's think And and time. And that we there. in going at Walt end our more evaluate not asset, long-dated conditions on our by

would at And And so but to just monetize. looking that, when that capital apartments do markets higher Southeast, some Watergate, be to the in we potentially not other also that would while risk. we're diversifying growth really our reallocating

Chris Lucas

answered questions. Perfect. follow That my actually up

I I that. morning. all this That’s So appreciate have

Operator

further There closing in Paul any queue. are for the would questions to I over back floor like to no comments. turn

Paul McDermott

the to I'd for again look And we Thank like at forward many conferences everyone time you. seeing your thank over several you today. the upcoming next of weeks. to

Operator

Thank you, event. does conclude gentlemen. today's ladies and This

wonderful You you may disconnect at have for this time. participation. day. And Thank a your

Elme Communities (ELME) 18 Feb 222021 Q4 Earnings call transcript