ELME - Earnings call transcript Q3 2024

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Operator

Welcome to the Elme Communities Third Quarter 2024 Earnings Conference Call.

As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Amy Hopkins, Vice President, Investor Relations. Amy, please go ahead.

Amy Hopkins

Good morning, and thank you for joining our third quarter earnings call. replay. webcast Investors slide and section available our being available that will is on the on of webcast event with presentation a is be Today's our website forward-looking Statements them events statements risks made as uncertainties, cause and actual differ may unfold. results which call duty we during may undertake and that known no and this involve unknown to materially, actual constitute to update in risks We refer SEC of to our filings. these certain are measures of which our available website. GAAP can call non-GAAP the on Reconciliations our release was supplement, page on Investors and in financial recent financial discussed press the yesterday earnings be most found of this and and distributed Presenting Tiffany on McDermott, Paul COO; today our our be CFO. Butcher, the CEO; and call will our Steve Freishtat, I Paul. will over call that, the to turn with And

Paul T. McDermott

Good watching have you an trends Steve begin for exciting markets, on thank financial joining I you Thanks, our factors growth everyone, and so. our will do main we results day to hope or the and unfold. is for all look Election This Amy. either our morning, driving voted by Elme. forward plan Day. and to our and our the region, and our outlook. implications call discussing in Tiffany cover operating call demand initiatives, for supply performance their will and including discuss today's dynamics and results will I

the Metro Atlanta and Washington across Metro strong remained demand quarter, the During regions.

since is of to for job for is segments conditions in growth our markets higher middle-income favorable the rent markets, Elme. growth growth Absorption renters. driven quarter wage X stable on been Wage to shows highest and contributing wage relative been for markets, nearly years fourth that trend Employment employment, has a in in which income earners financial our for stronger average data in-migration growth, retention. resident was it's the by XXXX, our stable outpacing

the residents. Metro for base largest either the resulting population employment In-migration, adding levels Atlanta are year-end stable or employment XX% record outpace maintaining in XXXX XX-year-old a expected XXXX, XXXX is driving U.S. with a the demand region to have more absorption. over Elme's by to of increased in pronounced and which region in is in-migration age our driver jobs, Washington through by than the Additionally, of is the industries expected jobs XX Oxford X% compared is according growth region bracket Economics. to to to Atlanta

normalized with dynamics, remains Resident our long X.X is retention if tenure the also believe home outlook demand plays base strong. positive our to we be value-oriented price and tends pattern, stickier rate term. more that demand resident very significant a and near retention Overall, purchasers of both in for Even in role value-oriented a years. about to our average points return an

inventory our impact communities was of low the supply. across very Atlanta In differs to new Now growth on The quarter and just as turning our X.X%. from our competition annual in our communities for healthy an Virginia our a are supply submarkets, more the net markets Washington Metro, Northern feeling Northern X.X% Metro during was while Washington growth annual especially portfolio net facing are of submarkets third Virginia our impact. supply, inventory

average expected to year, X.X%, well of over growth U.S. ahead Looking Virginia's the Northern inventory below is X.X%. next is the which remain at

communities very low portion small with In X% price. addition to a on our or supply competes overall, only

inventory X% remained third Atlanta submarkets, elevated during our ratios net the For quarter. at

to were are previously some delivery normal the anticipated estimates now delays early in deliveries that Additionally, we in expected fourth in occur quarter with XXXX. seeing

in average, caused XX% expect we supply the temporary past as our the was more the a compression supply impact is increase current of pools. level supply to of concessions have our no On do in rent While had submarkets to submarkets. not demand and year communities, widespread new having competitive disruptions above Atlanta typical half only our quarter over third deliveries and with

of expect and be we quarter XXXX the However, curve to XXXX. relatively quarter third between first the flat of

of we decline XXXX. XXXX, to throughout have are of to less X/X projected supply a ratios our supply to relative submarkets, overall our submarkets new inventory Atlanta the low than across Atlanta X.X%, starts and expect net very in under pointing Units that XXXX to and demand continue are In year. the metro level improve and to construction significantly

NOI Tiffany. favorable which detail. Atlanta in the turn it strong. and demand Given medium discuss to deliver that, outlook with long-term in over marked And expect and Furthermore, to is trends, our will the Atlanta, Tiffany term, we improving dynamics for more I'll growth over improvement supply near in now

Tiffany Butcher

our Overall, Paul. line winter approach months with in we portfolio's expectations. our are the fundamentals Thanks, as

the stronger-than-expected our we performance During quarter, Metro Washington from generated communities.

However, we slower-than-expected Atlanta. in experienced improvement

bright occupancy sequential same-store spot rates we midpoint Virginia As very and has with this above the year, historical rates. Washington portfolio, levels we're Northern in of a guidance. captured result, renewal growth performance our growth same-store towards driven NOI by Retention Metro occupancy communities. trending the remain strong assumption a our our been for from included strong

year We stable good revenue place with expect the strong a in trends outlook XXXX. growth portfolio and into a to across end our

was growth the lease same-store during quarter, new comprised lease blended rate and Touching rate X.X% of our Effective during of few quarter. lease third for portfolio growth growth negative on X.X% a operating the X.X%. renewal of trends rate

in an for October renewal We're growth through lease growth in for our lease same-store X.X%. and rate in X% and November was moderation negative at with was to lease renewals lease X% year-end. rates New for rate seasonal rate of X.X% signing expectation portfolio average our expirations, line December

in heightened XX% longer-term strong quarter the quarter, the base at third excellence. year, last during and underscoring Same-store remained up of very of resident has focus from service the our customer retention nature on XX% our

percentage driven remained over total the quarter. at of home purchases for Additionally, the our move-outs low move-outs X% just very by for

increase by XX.X%, Moving of strong on demand evictions the in supply to in occupancy toward of increased to our Atlanta new down timing trended and in occupancy. the a debt. in and repossessions, positive the at October, an XX the the impact will offset expectations, driven Metro, the with the sequentially August ended Same-store the portfolio. In occupancy we Same-store bad anticipated basis of line a trended in end average our Washington of XX.X%. strong on impact have month quarter part pace by peak and occupancy following points which

debt. to bad Turning

the in levels, encouraged we're second Reducing have resources in we expected of earlier place. seen with implemented On evictions XXXX trend year. more normalized income to bad a House Bill While processes XX half Atlanta, by and appear the recently in a finally Washington debt positive note, addition verification over the this priority, days credit off-duty changes we in we additional we've made officers of see utilize which this the nearing needed improve our top protection improvement is the communities, last be Metro as to and across the is pace to in Atlanta year. to process

October, month-over-month new year-over-year. resulting improvement we in modest quarter, lower Additionally, anticipate debt. in flat debt to and fourth in We delinquencies remain now the bad for bad relatively improved XXXX expect

lower a in result, As greater benefit we debt anticipate from year-over-year bad a XXXX.

to renovations. Turning

of completed approximately During average units, on an renovations the quarter, XXX we ROI XX%. third generating

more the XXX We expect value X,XXX driving our full future. than and runway renovations creation in foreseeable for well to upgrades of renovation-led we continue meet With enough home renovation homes the year. into nearly target have to XXX our pipeline,

centralizes initiatives. our the which on and driven Elm and operational Services, smart this to of Resident NOI on management renewals. fee payroll strategies home following targeted FFO track Moving remain year, and launch We resident to by upside technology, achieve savings account

across WiFi substantially and Beyond target year-end. installation complete out starting it to portfolio through in phases, our X,XXX We October in upside homes by are XXXX, managed approximately X. our began the rolling with Phase expect in we process

Phase over adoption XXXX to outlook balance Given in X X next X it and Steve approximately anticipate cover that we recurring And is our over and turn a that, resident to million of $XXX,XXX $X.X is fully adopted to with to sheet. I'll $XXX,XXX million to process, the XXXX years. $X gradual NOI once

Steven Freishtat

range our per Thanks, Tiffany. we $X.XX share. to tightening share, Starting per of our $X.XX with to maintaining $X.XX per share are XXXX midpoint FFO guidance core guidance,

are to rental non-same-store is X.X%. now to million, tax midpoint We million assessment, $X.XX lower to NOI multifamily We range from a new supply our which NOI a under pressure $X.XX expect assumption from to due from tightening growth reflects same-store multifamily higher-than-expected range which appeal. X% to and

are raising $XX.X which tightening to range assumption, the $XX.XX same-store We and the midpoint our NOI XXX of consists million million. to Watergate other range of

which from range of of Interest on million expense due million, a midpoint expected $XX.X anticipated impact to to slightly $XX credit. our line the cuts interest lower reflects rate now to is

expect to end, year mid-Xx in balance sheet. our was Annualized finish X.Xx EBITDA to and net our ratio our debt we to to in targeted with continue range, line quarter Turning leverage the range. the adjusted at

remains credit facility position more with $XXX revolving shape. strong or XX% at With debt to end. than million remains no secured XXXX, prior our million quarter of our Our one and available only maturity sheet balance in $XXX excellent on liquidity capacity

report toward pleased trend ESG week, and being Class line core our goals guidance. summary, to toward expectations, outlines our progress and our I with ESG. quarter and The in an FFO ongoing our our dedication to ESG to of B wellness we that midpoint increasing showcasing our space. results health of our am to our share were Turning our last published multifamily continue efficiency report the the commitment In leader to third residents. the within we

in more dependent from quarter, guidance continued the Metro to thanks improvement While this have seen Atlanta the would portfolio. at compression significant in debt our fourth on year, performance we is our bad like our achieving Washington in not in point to strength

expect Metro it XXXX, improvement will And another set next to to meaningful with stage the that, Atlanta growth favorable forward, is and dynamics we thereafter. deliver performance I Looking our year open Washington supply-demand solid with to year Q&A. increasingly of portfolio deliver in our in up for

Operator

from Your Instructions] Paolone with for Anthony is today JPMorgan. question first [Operator

Anthony Paolone

Nahm on have Tony just Maybe quickly bad on for You debt. today.

You where a I into guys things I currently tailwind guess, stand the you mentioned XXXX And from delinquency Atlanta going rest expecting you guys in are Atlanta there? that to could going speak were much than anticipated. the portfolio? of slower guys and of how in guess, improvements improvements

Tiffany Butcher

Bill Atlanta, D.C. below In bad Absolutely. approximately eviction debt Butcher. of driven by of throughout a in in by revenue X% we the those factors been of have of of a market X%. impact seen the longer Atlanta both over was of XXXX as as at year the driven bad in This really XX is now in which the higher-than-anticipated evictions processing normalized third shift is needed and execute we're the delinquency. news to was our implement new The the the in last due debt House in level, in place, Washington, October, that and bad good of is have part officers debt faster off off-duty the lines evictions. did Tiffany days seeing experience time challenge that portfolio month in that to the Georgia portfolio allowing structure to a quarter, is part we just Starting a

that pipeline moving much faster. So is

seen move being back start also their advance tenants. eviction rent-paying which to up we've helping speed residents them those residents is and units re-lease lines, also from proactively getting And in able time to to to out of delinquent highly

in we October. contributed we've experienced Additionally, residents overall new in bad which processes and and reduction current has in our debt payment, decrease to to on proactively of and get rent the help the continued them internal work also delinquencies with that adapt we month to procedures

However, bad expect a meaningful in fourth typical the don't line I improvement in to say see expect that bad end the will given we quarter, with we debt in to XXXX in prior year. seasonality debt, and the

accelerating head really XXXX. in process momentum saw of the as October our changes we we debt with set internal that us for We procedure bad continued lines, expect to eviction up in coupled do time and improvement into

Anthony Paolone

it. Got

offered those supply more portfolio? also maybe quarter, And guys in Or to deliveries? is guess, low any so I also you experienced Atlanta concessions due Atlanta, during and is on of And elevated is your a occupancy the function it that more being evictions the Okay. are of debts? bad

Tiffany Butcher

a that does put as contributed through in time supply And we that term those pressure seen it obviously lines speak have dynamics good on some supply-demand we've that for it's to Sure. also Atlanta. we're of more re-lease But as units the as the that near-term the in changes long we're head but a in a it's is little of I to would both the rent-paying peak say had. can able we in eviction seeing occupancy bit to said, to markets. tenants. in a that our we the terms occupancy, And combination second Atlanta, of Grant

say it's low occupancy X those So the combination the of XXs, factors. both being I of a of in would in terms

then second portfolio third week, concessions entire Overall, the amount are concessions. of about flat the And remained say quarter. across of blend average concessions at you I kind a quarter leases offering we signed XX% in of about asked portfolio. level, you would on that with if to the the less than an

of a supply-demand strong specifically dynamics. continues very market you by with Washington, to If though D.C. great be kind look market market,

So we concessions. Washington there small might for more by much have less a submarket Metro is where area. need It the need be in submarket

the only at If offered we quarter X.X leases third look our an XX% new area, concessions average leases, days. you of approximately of in new on D.C. but

concession about XX% XX third of in new D.C. days. a So In averaging approximately receiving nonconcessionary sort the Atlanta, the saw market. we quarter, some of leases leases, remains new

is the Atlanta know, supply-demand impact dynamics. to in a really you by Grant, a the of in color there little Atlanta. if we more So bit driven just on are in overall little a concessionary dynamics bit I supply-demand want market, where definitely of the don't add

A. Grant Montgomery

this Tony, Grant. And is Tiffany. Sure,

of next be a XXXX. said ratio in fourth from think that but year really to inventory and we have summer, and you And ratios the really we to that's will then is starts through of that third-party do if this move leasing sort think net the and improvement it see and the data a gradual for the the look As be peaking in peak area. you when and season up gradual starts the sort Atlanta in will do the Paul and future. at the Atlanta and accelerate inventory accelerates We moves in quarter first slow continually net numerically, Greater slow in remarks, really folks quarter, spring very when it improvement. prepared throughout quarter sets move It down

Operator

with Feldman Your is question from next Jamie Wells Fargo.

James Feldman

start, guidance I the puts your in might that -- wondering implied for can it, in fourth to just DMV year risk? what's talk guess think at a in there way ask you occupancy kind blends slowdown any the of if your you quarter? maybe better just be Or to about the and

Tiffany Butcher

and Sure. Tiffany. what's I of Jamie, what in expecting to our guidance. this fourth can implied we're kind speak is the in quarter

averaging Washington strong occupancy XX%. area. all, Metro to of remain continued First has incredibly in the been We've over

occupancy expecting typical with trend trends. down seasonal to line are slightly in We

So XX% into occupancy of we in expect to end our kind the year-end. high head range as we

as We to our strong expect all has also retention continue year. remain to it

the blends overall X% X.X% in in We're DMV. effective X.X% rate range, X X% of terms our In expecting puts at we're expecting to your in between X% growth. to DMV, the the be new for lease to and renewals blends negative which

James Feldman

same the maybe in then And Okay. question Atlanta.

Tiffany Butcher

sure. Yes,

are mentioned We pace in low as you of if range. before, evictions. remain Atlanta, XX%. trended the expect So we think we And range about I that a seeing to in have the in do faster occupancy

in the new have rate expect of to starting the renewals really X.X%. again high in be we're to we depending right at happen But when those very low timing obviously, digits expecting some negative if the bring on strong it then timing put lease And end help some hit, will the of blends, to the that about strong bad with those portfolio now. a to will still as down lease blends up our for occupancy, blends, evictions could pressure impact think market of evictions competitive double overall positive new a that on could slight be you to seeing we So but of debt. dynamics for reflective negative rate when near-term X%

the Atlanta we're be X%. overall in blends fourth negative X% So to quarter, negative to expecting for

James Feldman

Okay.

Just to minus new, or confirm, XX-ish so what, maybe. the you're like saying,

Tiffany Butcher

I probably negative would say XX%. negative X% to

James Feldman

Okay.

Tiffany Butcher

quarter. fourth the For

the For be like XX%. negative X% negative would it full year, to probably

James Feldman

looks Okay. were total what them portfolio And the if do like? you combine like then think to you both,

Tiffany Butcher

say lease For the are X.X% be negative going to quarter? For X.X% would X.X% the quarter, renewals the to to negative fourth I a fourth X.X%. rates new

to translate So X.X% to bps. say, means approximately to would if of then for XX year, be X.X%. what say, new to, that negative want Renewals X.X% full the you be to X.XX% would kind And blends, X.XX%. that positive

X.XX%. be blends to So X.XX% would

James Feldman

Atlanta, read I sequential had talk That's that? you I to then a that's helpful. going that And right. think OpEx XX.X% there like you if something like behind increase can in Is what forward? through look Or going

Steven Freishtat

it talk Atlanta. can things I'll I Steve. is in that this Really, OpEx X for talk Jamie, Yes, QX about. was about

price in purchase cycle. The had we've talked X-year We a that the about first to Georgia is before. reassessments in taxes, closer got X which

the -- that in in at still couple to we for We're the we're that, of was taxes, in of the XXXX in didn't quarter. QX, tax year-over-year driver will here kind So still addition the in quarter. waiting in if receive look third the some any appeals saw expecting year a we're we last favorable you increase. but fourth But biggest tax hit appeals that on increase

there timing year-end. some difference out net there's So by that should

one it's second going course, We much X the in lower for had large kind our a next renewal insurance a out of only insurance last had of and a year. September forward. X% did months renewal increase of XX is We the The September We, finished increase. quarter. playing insurance. very -- had That

lastly, and OpEx, and muted number going saw obviously a that So of quarter fees insurance legal increase in saw related notably an increase. evictions. on in forward, evictions And certain those to should the costs be we the more trash

James Feldman

lower portfolio the guess helpful. expenses, That's about expense in you just do or think big growth as 'XX, sorry, it was 'XX? And 'XX your will I -- be you for on than picture Okay. higher overall think

Steven Freishtat

kind we'll large in about We thinking trajectory we guidance couple just the reassessments. that it's don't really, hitting the a of X-year we QX increases Jamie, a of our Atlanta. from the February. If expenses see in on I taxes, us about give full the X and that 'XX. things the think And for like But of hit in Yes. had community cycle

had think that increase about bit. increase, tax than talked come the So we I much increases a just will the we X% the lower down insurance, On before.

noncontrollable more down, coming see So changes. certainly that coming see down growth growth and so controllable than we we

James Feldman

expansion markets? initiatives, your last then And just new no kind hold some to open to just investments? for you're you waiting Watergate whether latest selling are it's of entering Just Okay. get while? repositioning Do strategic and portfolio on or want on of a with your for year-to-date, market additional me, acquisitions think thoughts thoughts conditions markets what for kind You're latest your of up? on into and

Paul T. McDermott

Jamie, it's Paul.

We Let's start those it, growth a quarter and during has of And We end Watergate currently had X.X years were a good at it's QX of for square XX,XXX XX% there. out renewals. Three occupancy. X quarter had backdrop, Watergate. leases at with on feet. just as sitting the third executed the of

months those of them. with between One place, occupancy. $XX and a we Watergate had on $XX X-year with had those averaged expansion. of XX% the rent was that the that the executions an of foot. very associated and took allowances The free to a those expect we're XX None expansion happy at those close But rents it. with TI And associated was and deal, way year

quite Jamie, not the gotten that back. long-term is the asset. opportunistically market the progressively And us. obviously monetizing coming look frankly, in has past, for It at better. a It believe we, D.C. said is we've As we'll hold

have in XXXX. more place taking transactions We seen

when just with will guidance. that our that we team execution now, on right So doing. we're give is XXXX more February leasing again, in But we pleased provide the insights

markets. expansion to Sunbelt markets right continue Jamie, we of favor the terms now, In

to that when candidly, like the are opportunities, as markets are We're those specific seen transaction some points. back, stepping to have guidance. just probably we be I we'd wage we growth so we towards. But to think we And and creation, future. the activity think than really have -- I hallmarks that of allocate get more data our they said, capital that more into job I what have in in to -- And markets Sunbelt. the favor we've expansion more in-migration going like about see markets we the do evaluate try of outsized February we we

with and the well leading We have of in of a and to again, transactions quarter D.C. of now. we'll end D.C. markets is to But as even our fundamentals more doing, also data goal because to, would how points current a in D.C. obviously talk in be on and the year-end. the pickup about seen the available fourth of country bit our we more right continue collect be have with markets terms the geographic expansion, able by year at that those our

Operator

Your from Elme. next question Chan for Ann today is with

Ann Chan

expenditures total increase, with decline Do next Ann years? in is few steady This expect Green capital Street. or you the to hold

Steven Freishtat

Ann. Yes,

So driven would that our this a lot done. the from One is CapEx perspective, I year and by of really renovations that And mention we're a is year, probably think doing. couple a we've CapEx next initiatives the I of things.

$XXX about do to going we're think million this I year.

we that year, but expect I than or slightly maintain do slightly to go might that, would up. Next either spend, more

those Another thing quarter. next talked the a XX% in Tiff to that which get communities might the And number fourth be going we're year. to to that XX% looking rolling returns the in is about managed NOI the communities are of out we're additional additional some increase at in which XXXX. of range, We're WiFi, an

to So CapEx the look coming over the think to going as -- years. we is I do drive initiatives, our next that of ROI over some the

Ann Chan

more just then one And Great. for me.

the ultimately Atlanta, bad levels where at? stabilize do to you debt in think going Going are to back

Tiffany Butcher

and February I XXXX. guidance see of Ann. say bad through really debt the if Great to you question, trends we're -- detailed we give where kind on going in would

it levels normalized that we to be to you get think pre-COVID, guidance in you to in detailed But for where where normalized could to it bad X% kind of improvement in look market levels debt probably there kind do if in be, going think from take back was bad debt the that is next of those will give bad I are looking are debt the think I of we through range. February. forward. and X.X% of our that time more year, today significant going we'll to kind on But

Operator

is Research. question next Cole Bardawill from Your Wolfe with

Cole Bardawill

the I today, if just question usual? after demand election, seen just to historically with with D.C. was One just I on election curious changes you've it trends in is wanted months market? specifically kind business happening as any of ask an the everything like the in Metro Or in

Paul T. McDermott

is election. demand the have Paul. this around Cole, more A localized that outcome used drive we jobs always for is lot When legislation, of tends of that office on have here space. obviously more depends alignment. word and alignment, one the The you more to

staffing type If of that's D.C. of and see any of -- would again, a do efforts, we you the a see another. a proposition initially that that, off and -- value -- is but you alignment types if isn't the expect some they critical demand for we we House, and on that don't we alignment, but space, lot have just So see is may traditionally if there where to movement. type But overflow draft being pop in see think product not I White one the really changes because House, only duplicative long-term Senate office -- all do see office. for a we that pickup probably of for

Cole Bardawill

had I bps. specifically quarter-over-quarter, one XXX saw sequentially Atlanta. of was I kind that just then And occupancy your up on it. Got Okay.

rate to the right Do that And like continue you that direction. in it's it how over you also, trending guys seems thinking about kind going currently? are occupancy So And prioritizing just forward? like expect are specifically? you of

Tiffany Butcher

we the rate over that growth drive best say, like Cole. environment. your feel prioritizing question, would is We market this occupancy NOI definitely in part starting way current the with at point. question, I last Great of are to the

So retention and the through renewals driving growth occupancy definitely we prioritizing are and year.

are earlier, through will XXs. in mentioned the that in I XXs low year-end. the I low we stay we expect would As

be with rent-paying units timing them that overall near-term re-lease just we some the tenants. and obviously mentioned, be able story a back associated of good As there those But to to would could evictions. I impacts be because would getting

year, about think to would as summer into So XXs. the in the get into low leasing most we see season. up as end we occupancy we do head kind our we it as expect likely spring XXXX, We where be trending of particularly and

point our the at so focused debt driving in growth throughout on and occupancy absolutely and And portfolio. are we time really improvement prioritizing this bad occupancy

Operator

Your next with is from question Michael Gorman BTIG.

Michael Gorman

Tiffany think or XXXX, into supply you talked ratios. Should and about Grant, obviously, heading then picture as quarter, the I'm the but curious in we to the in expect and trajectory? what inflect the new 'XX we fourth there of lease And growth in Atlanta? positive? terms like inventory net about turn a How in is improvement your the kind thoughts the of are market quick recovery

Tiffany Butcher

then a on give happening you the and back see detail little on lease new inventory I'll come I can that the bit and ratios, growth. you I give maybe think impact more that Grant rate

do you to peak? the kind of want just supply walk Grant, So through

A. Grant Montgomery

some to more Happy you give Michael. Sure, context.

supply extremely the as So still demand demand. and the equation really works And out strong we seeing are side, demand. on

nearly XX,XXX units had we Atlanta. year, last the in over absorbed So

that good We the that's working we do that. obviously elevated supply. through So are news have still

gradually sort through I of will slower part earlier, like the of net really lease-up, As terms the coming of peaking, but flat, about that we remain talked relatively year move down. inventory although in elevated ratio,

So is look at X.X% it's region-wide. currently, about that you if where it

that X%, you see is change to additional of and today. it's and when start end Tiffany. around significantly elevated, XXXX and pattern you the of to is accelerate I'll you during that will better over summer leasing to season third And that more is turn time it down than If look it of starts to which really maybe is the sort to seasonal see absorption. projecting, spring typically back that, still but by they're what so the parties really,

Tiffany Butcher

rent just of to going by take about, the recover to that then region And was the the growth would market Sure. positive. just in time supply continued propelled with that Grant say constraints to turn I Atlanta backdrop, rate rent for new lease kind talking that it's for with market

in earlier, occupancy about I remain significant that mentioned improvement expect NOI, lease new through be debt new that's we Atlanta versus negative going we rates but our to that to As had driven there's and do we be growth. improvement as think XXXX, going rate think bad more will lease And by XXXX. in

Michael Gorman

then, on helpful. Okay. a just allocation That's maybe Great. capital Paul, question And side. quick the

You have an about expansion that you of on. markets continue some talked the eye to

months has is fundamental of pretty an in I in what the you're think the have pricing low and assets is aggressive. recent talking look pricing these challenges, been even some takeaway into of in markets? curious interesting is how how the Xs. new thinking still one when you out that of and the seeing trading is about kind Folks things entering that been transaction you're with the those about where the activity that markets fits into that there, at I'm markets

Paul T. McDermott

Sure, Mike.

Starwoods even discount more And that go big our transactions for the to So seen us. let's start have was list. taking a we've of I a equity that said the obviously, or of X/X the returning sellers X/X seen of of the have I sellers say the definitely pickup has deal, back haven't gap, I that. 'XX replacement balance can used aggressive. down merchant just start we would cost and profits, syndicated the starting discount component to and that in institutional maybe observed we're as the although, capital with closing. did been say I'll off slight developers the fourth the We've in we developers we i.e., really we to become needs, earlier, Blackstone, because have pricing, liquidity seen pricing into cost the seeing, mean there quarter. sellers that replacement with about with amount really just late terms been when i.e., last I'd

Core has couple that first on flat And I that frankly, the X family recoveries of buying years below in capital we to really only the would to quite shops, institutional say been years at are we are been LP that that, thesis new haven't odysseys. are in negative PE The increases sidelines some offices. really the replacement at the in the and observing capital, the buyers our They discounts there like costs been time. underwriting really really in have rates 'XX X.X% have is groups from right cap. seen going in And in in of consistent up. a a from and core own And our would our now, X.XX% space. been the the in X.X% research, cap 'XX, X% to value-add just we've plus with submarket the cap seeing to and not pretty obviously, runway X.XX% vary 'XX, X. and has value-add only heard we're really terms that the But that's Michael, just particularly competitors what but submarket. down, that to space,

Operator

over management And if questions, I'd like closing for to comments. further hand no to back the floor there are

Paul T. McDermott

Thank and to and time you, operator. near for to many of everyone keeping interest Again, I I you updated your today, progress would look the speaking in like Thank on our forward you. thank again you and future. with

Operator

for your you at lines and This disconnect time. Thank you this concludes participation. today's may conference, your

Elme Communities (ELME) 5 Nov 242024 Q3 Earnings call transcript