American Campus Communities (ACC) 27 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

Ryan Dennison	SVP, Capital Markets & IR
William Bayless	CEO & Director
Jennifer Beese	EVP & COO
William Talbot	EVP & CIO
Daniel Perry	EVP, CFO, Treasurer & Secretary
Anthony Paolone	JPMorgan Chase & Co.
Austin Wurschmidt	KeyBanc Capital Markets
Neil Malkin	Capital One Securities
Nick Joseph	Citigroup
Alua Askarbek	Bank of America Merrill Lynch
John Pawlowski	Green Street Advisors
Alexander Goldfarb	Piper Sandler & Co.
Richard Skidmore	Goldman Sachs Group
Stephen Sakwa	Evercore ISI
Michael Bilerman	Citigroup

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the American Campus Communities, Inc. 2020 Third Quarter Earnings Conference Call. Today's call is being recorded. Instructions]. [Operator like President conference Investor of American Communities. now Dennison, to Relations turn Campus Vice Senior Capital to would over the Ryan for I Markets and Please ahead. go

Ryan Dennison

morning, G measures the section, Conference and measures posted Call. the includes requirements. In release the Good an Thank to provide for X-K Reg comparable on the non-GAAP company Press thank widest access accordance XXXX in Quarter Communities' Also Relations press GAAP the the Investor release, in earnings to was package. those you joining the website you. company release which financial Third financial both American the on with and Form directly supplemental find Campus reconciled materials to furnished the package, will has you audience. possible

are webcast a on website today's with you X which replay live the call, month. can available for access the hosting We for

our and same. Act you Securities not of facilitate inform be call, are XXA of XXXX as filings. analyst presentation the one Act XXXX. within and SEC Reform Private Act statements Section be XXXX, Exchange this disclosure package supplemental referenced deemed along. Securities in statements of by the Management the which the during and historical of conference like certain financial following that would by and made advanced to forward-looking are will forward-looking may as Section Securities Litigation supplemental press the and be facts, package, the and meaning of amended XXE of statements Our in release the making Management in may today webcast you slides in Webcast the to

no assumptions, based the any subject reflect that Hopke, results its the time circumstances and the release. in risks actual the expectations after joining of President; that Bill Operating of our to that, are us statement may senior actual results they and Accounting company cause economic I'd this vary. to expectations in differ said release Having Chief can date the update to reflected risks Talbot, Chief Wilhelm, materially the like assurance the of forward-looking William expectations on now Investment Jennifer for events detailed Perry, Financial Executive Jamie members With or the SEC. believes filings Bill Chief to any Officer; company's be will Officer; and call. for Daniel or and press Jim Chief Public-Private opening no The Beese, uncertainties. periodic Officer; time statements Although company EVP Chief are achieved advise Officer; from are provide introduce with remarks. forward-looking to company from obligation undertakes Factors in could his management Bayless, to to Kim The call and over I'll turn Bill? Partnerships. Officer; that, reasonable Voss, the

William Bayless

Good thank us you and financial joining we and results. XXXX Ryan. you, discuss our Thank morning, quarter as third operating all for

and the which the substantially pandemic of new of As the commencement you encompasses the academic of know, was the completion year. impacted prior the academic by onset year, COVID QX

we are start by year. start pleased me academic Let the that XXXX-XXXX the saying of with

year industry transition into modern Daniel pandemic. from we the new as is amid the and William, of demonstrated COVID discuss, fundamentals industry, being operationally, Jennifer, student housing the again financially, will As resiliency once an the and academic perspective,

at on has believe to fully we not we in the normalized as time, exemplified business this many areas. road our recovery While are

many a believe to level in occupancy early of lease-up be exceeded best-case XX%, days the scenario this pandemic. Our a

abatement rent We're to also trends markets, in per resident decreasing request. from Several several while the taking month in in experience in versus most continue time. new place, our Our academic year. prior this many rent first collection at full rate of the improvement significantly QX. of currently improved to academic the XX% September, sectors hundred approximately other year hardship This receiving XX% thousand fewer month

with We curriculum in a prudent methodology, online, provided have regardless also environment be definitively combination. planned of peers to witnessed partners appears and hybrid the ongoing strong on-campus being their delivery our consumer desires whether students' it sentiment and University's It in-person, have university college stability the regarding or strategies. And implemented to have occupancies.

Also, -- university stability growth of demand a underpinning enrollment Power and in abundant year. not the value which event, ACC's Even $XX million college approximately markets, swan resounding RX fourth discuss, pandemic. As the this for discussions quarter total the for will in second we be William X quarter Tier research consistent versus academic $X opportunity contributed X partner, holding and $X of at currently amid X beyond in any education we university prior we only expect refunds million continues on-campus the higher as and the there to rental amidst the are degree our million Carnegie the appears institutions sector. stability black to in

health, promote missing Encouragingly, events continue students both global and Finally, students physical stigma our their of to instruction; mental surveys residents. items The largest and survey that is remove it two, mindsets has the are academic believe of how XX,XXX friends; Are Also of kind, one they're regarding with as important health others. its stressed as This is college their X with attending mental dialogue in-class their Residence we as Not over are the help worth pandemic. the mental mental of of this Are impacted With to commencement survey, well-being. We'll jointly is of XX% open health reveal We and started. their health. illness part conducted in COVID-XX. mission top about residents hope the and the commitment a get are: survey results to important Hi, of responses it perspectives student's to during noting, to to according and among one, the I'll surprising, conjunction most the How having in a more themselves us have with and COVID and programs, to specifically received in also to the off-campus. well-being respondents the associated through from Officer, the the student promote whose result to our examining as just to Operating over Beese, communities Life the and Jennifer very on of You How as mission our meaningful discussion that, understand year health better our endeavor. new at Project, our Hi, impact Project, mental to a ongoing discussion three, Chief mental around You socializing turn encourage participating our

Jennifer Beese

Thanks, Bill.

get that academic to with desire Based delivery on regardless excited curriculum of method students are vast college of be our it year at activity, their their We now the evident universities. month. first environment September full the is with peers their majority the leasing XXXX-XXXX to underway representing in its our

modern, amenitized students the Our despite the current to environment. offer fully apartment well-located, continue communities COVID ability to thrive

Page supplemental. to of the Turning SX

third and new usual, years, prior academic leases our quarter August academic expiring mid-quarter two commencing mix includes of in and leases a September. As with year year academic

improving year new academic financial heavily prior year the influenced we an COVID, in While seeing year trajectory. are were the by results academic

in at that ACE to During to on-campus in quarter. primarily the the residents University, in to quarter. the quarter, to rent halls residents $XX on-campus which provided comparison Partnership is in refunds $X.X fourth X we $X.X provided residence the million expect decrease we million second This are million to

provided instituted COVID-XX, additional As parents we $X in over refunds at being noted discussion second release, by financial we and no to students time. of impacted Program in the Hardship assistance. this our our are during With where million regard quarter Resident

During on academic collection collections, leases. within significantly $XXX,XXX direct amount a totaled from month. approximately during relating September, lower the rate quarter. In the the had September, XX.X% current based to we for improvement regards charge million, quarter, during on a of relief with rent amount the levels second of significant the in the this our to we seen the our program, In gave $X.X XX% prior year majority requests rent

to fees, bad expected, summer income waiver million the higher third transaction conference late of the quarter business, and other loss by debt. was of impacted As of and camp due our payment fees levels $X.X online continued

fourth as our savings and with and payment we were With to same-store leasing on of regard OpEx, all the lost to continue expenses we into reinstituting will of fees. we by some led revenue work Going offset in degree operating to be impacted able partially X.X%, controllable quarter, to savings categories.

and owned as pandemic, during by expenses COVID has the worth approximately properties and send our and with at continues. primary to move-ins related or may in a due are distant physical report After or noting continue X.X% at putting eliminate or to our our have knowledge, home residents total properties, we physically in-house, with age of lower throughout turn universities Consistent adjusted also in plan population, to Dr. health G&A reported year, resident's illness category. our not At costs marketing the savings, the to for nonessential Fauci executing positive COVID a that of cases all X.X% It the to occupied our were reported be the In statistics cancellation are the and our serious have that risk and and thankful country X,XXX digital, payroll students promotional We parents maintenance we substantially academic and our procedures and XXX with impacted tracking residents minimally to that able national COVID-XX Throughout of need sanitization more higher this of staffing is family scattering if to the touchless, pandemic. COVID overtime fewer their beds. to hospitalization for units urged marketing lower back in-person current to active of events, both residents successful associated students occupied their our have we our across only the time, possible, lower less of country, risk the College due of travel, CDC none beds. cases at costs the virus. case. been them contact to have

Work to for announced activities successfully cases, We the operational that see spikes cases seeing have their protocols. and have spring. are initial pleased plans decline, recently in the in universities in-person through several implemented expanded

Page our supplemental. leasing the to of on SX results Turning

XXXX-XXXX September prior As XX.X% portfolio in-place leased, our same-store was X.X% rents growing over with year. XX, of

XXXX XX, unchanged percentage press September our release. same-store Our is lease since

we year our decreasing which However, chart, the our serving as university in first at at the and move-in sophomores you properties see gained finalize assignment additional primarily our serve their approximately as that processes. properties, XXX in primarily students will offsets above, leases partners

will I continue gains serving property call ACE in first communities, turn who primarily is university above. The again leasing William, activity fall now process for and see activity. opportunity will students, our the year to largest administered our discuss our which by on-campus sophomores is partners. serving We to at the occupancy over off-campus investment spring a

William Talbot

Thanks, Jennifer.

Turning first to development.

on Sciences are completed of completed ACE University the to of on California the on pleased San developments Francisco construction have delivered despite State environment. in and owned University. were and budget the We campuses The time Southern developments challenging Health X

at primarily return stabilize communities occupancy university state policies to were projects initial still the the each at upon COVID-XX. a development on response We yields impacted will However, to to in normalcy anticipate campus. due and X.XX of

we the Disney Village second Walt Flamingo World. project phase of addition, In Crossings completed at our

delivered With and the current the beds continued X,XXX phases, of both at Program, the College units unoccupied XXX which temporary totaled time. remain suspension Disney

with program and ground agreed the relationship, we including members. rent Disney on package occupied, Given configurable occupancy to contemplated and has market, broader DCP to the to ground of market The half participants Disney we now all leasing beyond our lease the the abate and until working second market. unmatched an amenity recently not liability lease updated provided the attractive community individual the becomes original rental Walt design the by expect options, lease Disney cast DCP do community potential the Based of World until are with XXXX. actively projections furniture, and strong of units Disney, from project in

pricing versus are forma on least due traditional market leases, coupled non-DCP the currently just to units short-term and beds nature brought continue participants available both We XXXX. multifamily diminished we open through open the DCP absorption pro XXXX, online, of through leasing discount expect as anticipate and stabilization economics immediate interim housing DCP conventional from the original renters DCP based these will has market projections. with at of the to While commenced

University program occupy to along the project the the of continue the of through full the on XXXX, the third-party located in business, of We returns of to of May and broader of XXX-bed in Law construction is campus fall is Georgetown fully the we remaining on the DCP the School, phases our that be just levels the with campus, Disney market on the The XXXX. the construction north of development capital on-campus leasing project delivered Washington, to be return community. quarter, to rental University's College D.C. anticipation until delivered development Georgetown during in commenced Program a expected In

We and earn project a million total expect $X upon in fees, completion. to of the we'll manage development

occupancy We The a With Berkeley, will this of of ultimate and for to modern development these MIT, mitigate time. not greater on-campus efforts Commonwealth the California, the still have continue Concordia of at accommodations feasibility at losses. University Irvine, offered in their to modernize anticipate University. on-campus against predevelopments to and increase look to consumer make on finalized progress overall preferences have West predevelopment more project University, the and and University, the California, across Princeton on structure, communities off-campus. to impacted And The both housing antiquity Virginia we on-campus environment, University, extent, Virginia PX universities on-campus country. timing, much finance regard University opportunities future been meet the continued been

housing to In in on the ACE our financing wake new their universities debt including off-balance structures, capacity as more the sheets program, to balance development effects the focused anticipate addition, and COVID-XX. we be finance of conserving universities return of will sheet of

a those and remains deep a on-campus tracking Campus American strong currently of are We pipeline to opportunities, capitalize position on opportunities. in

enrollment. university Turning to

COVID-XX. decline enrollment experienced and seen Of statistics average have XXXX, reported X.X% with in we've those enrollment tracking fall. of owned XX for averaged the of impact fall in XXXX. Of in fall of universities our have only they We half a Overall, XX XXXX where of a operates, decreases students markets. increased an enrollment, enrollment XX% the markets been potential currently fall had ACC our universities universities for that actively the X.X% across XX% decline the of in X.X%. increase only

First enrollment only year X.X% down is student fall. for

university students as year may to those XX% As reduced we primarily currently first serve return the for semester. remained in is there decline Jennifer students improve XXXX. opportunity discussed, University occupied. projects properties spring to fall occupancies first in our a student year And are has stable the despite first decide been enrollment enrollment, international only given to believe for that students there slight year has

XX% for of strong data, and in reduced universities figures in With the the at students students Tier universities Overall, international Yet The beyond. academic students while remains segment from and enrollment in the loss domestic places we year having the released from stable from serve X.X%. As universities negative students. much our impact the domestic position demonstrates by X has X typically decline the Tier deep constitute portfolio, we less domestic international pandemic XXXX this have of serve offset any demand than international same replace a enrollment to international colleges universities been enrollment enrollment. a demand resilient, from those students. during XXXX XX% there our XX% larger grown fall international of

in markets Within available discuss in close lack new Finally, continue financial year's in over construction of remain landscape continues of next will supply new Daniel turn markets, yet years. downward of the put on current construction, XX,XXX for decline now for under the to pressure are not XX Limited our construction X% results. X% a supply to will reflecting for year costs, but decline supply land currently XXX to few supply to new potential planned, available XX%. the ACC's future it now financing our additional a academic beds next of under tracking and off construction we beds favorable. XXXX, to campus, I to

Daniel Perry

Thanks, William.

$XX.X As for per night, the was or share. fully total quarter reported last FFOM third we XXXX $X.XX of million diluted

on its the the despite been ongoing direct we we resiliency As universities exhibited. to with XXXX serve, have and have has student effect the experienced of housing and we the unprecedented pleased Jennifer said, the sector the colleges response environment in virus, operating and all

impacted lower, to university reduction less due partners' budgeted of ground and course, our lease to affected NOI, academic rent originally Disney on College as as venture Disney's agreement the a expectations for lower the occupancy return lower quarter. and Total paid and fees. every level over debt, revenue the budgeted, financially approximately was joint for $XX related have revenue, due instruction was cannot quarter, the to ground XX% refunds, has quarter, negatively $XX Program of waive million relative million -- And than being as partners we camp year. well were operationally despite the believe our increased was will, earnings and amount result delinquencies, lessor Like property summer rent Partially resumes. isolate million semester relief, While as discussed. offsetting for opening loss the we the with fall be lost as well impacted to wave $X.X online completely revenue, expenses operating ongoing started original original than fall relative hardships property until we by outperformance near-term expectations. $X.X taken we after the earnings FFOM and resident to noncontrolling by impacted both the the COVID-related to that governmental normalcy $XX million response to university reductions approximately actions million FFOM company's lower property rent new Also to are And approximately $XX pandemic, been negatively approximately and we to this path in expense a interest $XX on bad in originally of achieving significant the housing for in a to pandemic, a $XX of seeing ground approximately versus item Jennifer by our as believe but $XXX,XXX was million occupancy year-to-date, million the due last as to million.

management to And and in Additionally, on-campus fee contributed income third-party $XXX,XXX University's a our business properties expected. almost of lower, properties segments. than fall of these both due at approximately participating $X.X FFOM from was lower occupancies portion rents lower million was refunding

significantly we rent regards savings one that be will, remains Lastly, in possible strive travel quarter the September, reduction of the refunds we original level relative near-term. elevated debt $X.X operating are to prior operated reduced of and for of environment uncertainty an both stable, fall will to in for to have to we agreed the G&A and costs. in bad guidance pandemic. should occupancy we overhead hopeful to benefited help current the through not Also, X% fourth savings surrounding from partnership our expense to relative semester, the to approximately plan we as for be and level our reissuing at the limited the be of XXXX. revenue year still run can to due efficient to that in the expenses, though, create achieved With the impact payroll to expect that the levels resident and earnings third-party ACE we pandemic, we typically and lower revenue continued Due delinquencies of XX.X% we remainder the at the at the opening the If the as in of the course, $XXX,XXX offset have universities. improved hardships while million

to pandemic combined we of and XXXX. above and Concordia were costs occupancy of fourth gives $X.X in million the made and projects quarters. physical to In progress development that future, do discussed development balance meantime, XX% we quarter did impacts and year and approximately will as results expense operating to projects until supplies the be create allow $X able annual the immediate academic expected savings not we healthy to while levels financial million X us Irvine, levels return originally last has at additional COVID-related contribute have that new us in cleaning $X in same at third quarter, a procedures, And be will longer term, some be in the of scheduled believe University to the million liquidity expect levels. commence there fee continue delayed into University, for to the expected income our California, Berkeley, to and to will finally, the with to the to Again, XXXX disruption. Cal third-party second absorb continued in These sheet normalized confidence the continue XXXX. substantial a we the been strong However, the

cash Disney on XX, project spanning manageable secured detailed remaining $XXX no remaining on our of we $XXX hand maturing the over debt phases our availability million capital in and as and As in of phases XXXX, had corporate Also, our in needs. and debt in remaining million XXXX development $XXX September with on only supplemental, million XXXX. revolver, Page million earnings through mortgage a World of ongoing only $XX with SXX in represent the Walt of development maturities

was As XX.X%, of net on X.Xx. excluding that noting impacts the debt-to-EBITDA company's of be debt-to-EBITDA in to asset X worth September year, would X.Xx. results and operating this range to COVID XX, of net the the It's value total debt was

will I'll leverage the Page to debt high plan we SXX normalization we as X company's that operator to to portion the With have mid-XX% communicated, the back range capital the of Xx of the levels debt-to-EBITDA X-year layout the to our to the EBITDA, relative we expected net turn targets low the the return with feel and call. it assets to on that, well question-and-answer elevated start to the total are confident range. Although temporarily as historically

Operator

Instructions]. [Operator

is question first from from Anthony JPMorgan. Our Paolone

Anthony Paolone

kids wins with to think risk some was that into to maybe that semester. some greater opportunity up in the the as that thoughts Or some next think to just I pick some as mentioned the you of look your get -- semester occupancy out? maybe curious of you you I Did picking freshmen. don't up is occupancy prospects maybe second return?

William Bayless

look in with to the universities fall ups continue assets ACE assignment the seems at excellent parents to this are the optimistic COVID through managing process outbreaks universities job be through we have of by confidence point, and that. of the terms semester. done the in among Yes. that any in be those level And an is portfolio Tony, first students that at the indeed When on-campus in you stable greatest the the administered of -- of at increasing year upside terms that. to

we not -- we're something direct The purview administering numbers, in we on it's we that they is, any that school, to is we're that comfort enrolled when XX%, really thing is that in XX, September So place first that have -- occupancy that was the the over we take we're versus as that the is our where ongoing year XX% enrollment that XX% and the William the college decision process. steady. into and not coming talked though, arena. and out enrollment while through occupancy have material the for -- that still some time students only in of in material we encouraged, optimism Where leasing high impact went first numbers of released about diminishment are saw traditional

delay So campus. they're it's coming just a to when in

outlook versus who're they're know in opportunity job of terms the in -- a done is we have partners management. a And terms They a negative welcome that. believe want certainly And to diminishment. universities done have their ultimately, students But the more gain one it positive outlook more of so back. great we administering than of our

Anthony Paolone

Do non-collections did you from September. compared think that that And year? then quarter? number then Because or runoff reserve points worse of gets from anything that a it of the X And school the to last in against like seems students you in new group better here? Okay.

William Bayless

as to be know that out, the certainly, move as proven hopeful semester. We're through we stable, it's you but

about resident we talked very couple Jennifer less the As fact hundred. in are we've only hardship, for her seen of request a in that script, encouraged

the be on it for apartments, over to and process guaranteed and last annual quarter's in weight renters As commented, students of enable there'll in we have, fact student that education. benefit is essence, had I other the funding was them, call. their real application then loans; The believe recapitalize financial traditional perhaps

an year in that we And hit more than creates rate past this stability so year when academic we in midstream. on hope had COVID ongoing trend the

again, But want think sector, happy are obviously, still so it trend. our out over when with we're next see trajectory cautiously to perhaps how that on we're trend that plays a we're and that upward improvement. believe, facing fortunate We we several optimistic has And the the declining others months.

Anthony Paolone

just question. Okay. And then last

You've laid contemplated with balance asset But their about on through equity there's if out near-term plan you're also your how XXXX. And sheet the regards sales? thinking the your just to in anything curious common here?

Daniel Perry

in Yes. this liquidity Tony, solid of have that position is we're everything a front definitely able good fund in us. Daniel. we is, thing be The to to

only have fund we As maturing XXXX my And we pay I availability only $XXX at the look laid out development million to in remaining on revolver, through the to mortgage if on cash in And you million prepared there. of million remarks, $XXX between there. have $XXX on debt off hand pipeline. 'XX, and the left availability

us. all plenty liquidity obviously, front of in to of needs So our of fund

capital the our longer it, call in reflect or common plan, equity side of which course, term, capital come do most the depending there. equation equity dispositions the, of from Of attractive we on may cost what's

equity common course, now. does sense make Of right not

and our XXXX. year, plan via to million as million be capital of dispositions. through about we $XXX per earlier fund to We our this we million sold need only would part primary that year So have will $XXX target $XX

year, forward expect like that's that with to we next would very starting a reasonable feel we So move and accomplish. amount to

Operator

Wurschmidt next from KeyBanc. The from comes Austin

Austin Wurschmidt

with the spring curious, at fall residence on-campus de-densified, especially opportunities. maybe I'm they first about or attractive those schools, just on-campus administering as as ones year occupancy highlight is are thinking their that next one the did in halls You the most have closed well partners guys you how that university upside at housing of the as speak of year?

William Bayless

Yes. And question order. certainly, in answer let reverse the me

return an move the The the perspective, of with hoping and XXXX. exceptional an normalcy the our to COVID. much we partners I university as of are interim next think greater our done their the toward fall from for year, that all management Certainly, move fall spring -- of we in in terms in fall universities in have on campuses and of job basis. a of

the our The did. requirements Most expectations, a all long-term no dip do on in the ACE see to-live obviously, COVID the has a why in had to year you by in occupancy. we university discomfort with is the expect housing And universities and of expectations future that parents, first or students partner or campus. first institutions have expect return. This do means them be that accommodated they which anyone whatsoever. students requirements to in those Upheld

However, just terms short-term of done they the managing COVID basis, have is in other a on that fantastic job, thing that outbreaks. done

You our with XX,XXX Arizona State over University, in students. partner largest take

X.X%. then tested As that they XX,XXX base XX XX,XXX cases, of date, staff. they active this enrollment XX,XXX, students, faculty have the COVID and And that's whole

with ever place Most college procedures to extremely been that so are the all is administer. have cases been in infected And to with occurring. you excellent they probably resilient Also, rare been and have COVID. when XX-year-old It have as any has hospitalizations they heard XX demographic read, have asymptomatic.

managed, parents of as more fear properly And comfort. level among outbreaks is quickly passed them so if anything, students, and and think created occurred college have the students and age we only

students And to back welcome the so as come. spring to prepared universities choose I in many are think

decision the is they you encouragement And a that as to whether not a university of so the return. university really or mandate consumer it a return or return end to at not versus day,

Austin Wurschmidt

in even have considering that's schools housing? this their on-campus for the So They're some welcoming back students closed that spring.

William Bayless

and who Temple partner is negative urban only a housing, more been with Drexel, is have Drexel see a fully if in The extreme gone and their we that been cautious universities has both -- very we exception. of sense Philadelphia few students and their rare area. have But that yet whatsoever. few have in don't in has actually any there changes sentiment closed had more online. -- university Very on-campus

Austin Wurschmidt

the to and continue to Got expect it Or the as towards, of relative in in That's either funding items, you mean I net should leverage that a as you and disposition on us X.Xx But development fair increase then capital still that's volume? likely and as fund we is kind million the near-term then to needs, I $XXX right. number? we good increasing, different should to assume future think you've sheet, or guess, Is mentioned far decreasing temporary it. All needs terms debt-to-EBITDA then considering that to And $XXX seems guided leverage? those And normalizes. two are development. how balance you depending the fund million to that of helpful. managing

Daniel Perry

of we're Austin, mean, will do I how per spending. we much dispositions year, dependent development be on obviously, the Yes. amount

As about pace we've talked as doing the our fund best match we're of and FFO. in disrupt not our the we go past, to

We'll we see course, that. Of quickly just more to have see on the if opportunities how act in we progresses. may market, that

Austin Wurschmidt

it. Got

Curious what range And outcomes of seeing previously on that the from actually just a last Okay. had lend to side? that? up then on willing supply a construction little expected one of It you level previously. what banks changed or one more supply. ticked like Are seems maybe you

William Bayless

a from seeing supply that. we to academic outlook we markets. you But build did QX. of I reduced X% can't for X% and on talk where year is supply the But slight No. 'XX, uptick were year the And off 'XX. When decline feel you very our had, academic in we see strong we're

level beyond when are could in those last are we the caused think supply, the fall academic that supplier early tailwinds at a That's of the and where or And we've look going year. the seen We We footprint XXX continue to pre-COVID, than and tailwind. a fundamentals seeing get -- what you of leasing in, X,XXX strong what in ahead, strong we stick projects our ahead, southeast back go year built fall. for down those strong within since were for But late the or normalize, it had metrics XXXX. uptick. start markets. are you came as still summer was And lowest a that very 'XX -- the few and construction stronger bps frame build you that to -- supply only leases have just

Operator

Capital from Malkin Securities. comes next question The One Neil from

Neil Malkin

maybe at of kind seems like numbers of OpEx. better-than-expected you reverting the what or First in question in a is about came terms more on had least expense talked level growth. It to trend

of that that load? you've permanent And you your continue? to? technology to overall begin continue And about more a basis things if could along some and cost anything if forward a then the things those level are learned can on of that to same occurring that lines, from or wondering may there's talk either you you a implement standpoint should types Just expect those if staffing

William Bayless

Yes.

leasing of athletic promotional things. and per typically that are in athletic the on-campus add the business, and then students Two that Let here. are we nature talked of property housing a Daniel those event of aspects terms And engaging more when much staff that areas all campus greatest little very you and the students and the take type and you actively me operationally year of bed go staffing on activities, Paraprofessional in always centers a place can being when basis. When off, think activities hours context related. have some and where in start are we've the And are in the intense events, of our intensive at leases given about student throughout you those in of promotional resource marketing payroll. see about and of of somewhat marketing those life human look per savings working, ahead marketing then number of our event programs, the in-person,

social not there you having to of move as giving online, have, the to just online coming activities, everything so savings leasing you actual marketing less staff a into kind largely, been relates And relates it for the fully people the leasing terms see in to and level of double events of leasing, center that and tours. digital, for

savings benefit. X with the and things the business the of great seen in-person leasing we've of And day-to-day payroll so are and interaction marketing certainly, associated the

to we forward, we going estate and necessity skills the real ability probably opportunity I that think in and all look market as our to through lease manner. in have students really honed to that it many and technical that Now as at and relates companies we've enhanced feel that

However, XX.X% normal. to We the traditional fully ordinary versus at with XX%. our that we back aspire to said, are be

just see And opportunities manage, activities and so that will and from those of we incremental the do COVID up. digital back what those is continue there's the hope changes, contribute term improvement. no harvest longer type totally to thing that we we have because in areas. know saving longer can to say, We don't they environment those we're that ramp normalcy XXX% to things yet social okay, what to going we'll But go return as won't and automatically certainly, to and

so seen that's terms has realized to forward, but areas we've fully going of of some given greatest be hope may normalcy. we be to in how And savings bearing and the it one able the the return not

Daniel Perry

term Yes. this continuing And management seeing driving doing a think things less ESG program, think, that Neil, hidden well that usage are We're additional much our that in require maybe things savings the spend lot on went asset the the through the within our -- thing utility is properties turns. kind and as our that geared obviously driving is the during to a water that COVID surrounding with and driven, outside is and repairs finishes to of so only to utilities which also electricity, Bill as the units, on from we initiatives side, we're add of the within very and of efficiencies that side. both standpoint I we savings are fact really longer maintenance COVID or

that see given the think of associated the COVID. So we benefit savings with getting seeing you're to don't full all that we're other that

Neil Malkin

Okay. I appreciate that.

talking or schools spring. learning delivery Next, you in-person talked in about curriculum increased a handful about the of

you about maybe fall up? in in Now think guess, are range the remain a of the dealt that? of general, occupancy more of year? looks kind of Just stance? event is, back to of I'm blow sentiment I those plans of to your -- little And more kind I of you're what sense of How expect what XX And what university talk kind type to XX% like, of what's seeing? is kind getting school of based your Or that shaping you first with bit and could that And overall a would on general? they've of sort next it currently XX%, to the COVID. get

William Bayless

Yes.

I state I XX among is cases need, also I that said and answer said out staff something earlier that correct which question which also student think the asking. lead as But rates. XX of I question, of X.XX%. to infection want the is into speaks Actually, XX,XXX, body The is As I XX is really X.XX%. when discussing I the XX,XXX, good Arizona that a was faculty a you're cases.

fully how large What seen at are in-person, have but to accommodated how our in-person were the an done X and refer all And remainder, in part, one universities toggle majority delivering on our up as most both the have them excellent necessary in X staff, of delivery been When job in and were and our thing hybrid. College serve, reality were comfortable faculty very faculty of sure the that online, done we that semblance based that that high of online an when may making what as between markets of their really risk the we sensitive faculty, XX markets, of the ended delivery, their have of the we curriculum. relation markets curriculum and university because as seen at any at some only designated seen the provide What we in there and curriculum the look staff had of online they've the of is going you outbreak partners, for things and are or In And have they staff terms regard. they're alternatives. to be the have fully the of some to and giving that, you option and the look University. assets. needs we in, very that few markets

of that by back, spoken with so Board us. and came as I'm benefit There see that in what some a COVID. -- we're having is in outbreaks operating Certainly, -- what weeks effectively members. and spikes. of think to to conditions all toggling through then you at -- that were on time articles and I is normal back a read sure now Universities normal COVID X certainly, camp the universities been our Where to in not students of first you're curve. to as -- of ground the so operating as going there conversation campus, reaction managed And ordinary more are But X And when very a normalcy. the are spring, to to to have we're into online refer fashion. the same. the coming we move to I've the I

so our of universities think we surprisingly And delivery good as move operational Very industry all whether came at online, mode is regardless. roughly XX% whether delivery back back they to portfolio, in-person, -- you campus. forth. were XX%, the the division methodologies surprisingly. in especially When very to sophomore, not classes. were that curriculum upper across non-first look much and for our that reaction we a group Whether I hybrid spring, coming back students and of students, Very terms stable they stability year did or are see they in curriculum the were fully among within

university's very is for relates curriculum ability full the manage risk unknown, and to in in better that And and opportunity occupancy in and the as that in in -- we moving universities that again, it fall seen was June, record the so delivery. environment managing look and to that the in toggle back July the going proactive the manner think ability entering the into now environment that have have forth a at opportunities and track to we proficiency you the think forward, thoughtful when that spring people the

Neil Malkin

if it school assume you as lag fall But 'XX, there. again, a I the seems just of kind back lot levels? what to obviously, expect Or sort and stabilized there's Can just to you? I of to would year today, last apologize. thing your have in more based or is of go just just is just trends of more sort which you a part 'XX like, awesome. international overall get -- good you asked of said, know what some of I That's on a I the

William Bayless

how normalized. a are be be, than apologize. expect be just post-COVID Fall year-out year-in and when I in toward surrounded 'XX, we'd I demonstrated. I you fall universities like the to in part that improvement operate to Absolutely. terms what it are of uncertainty substantial look I to 'XX? of XX% we seen. be and at believe to in where normalcy. incremental forgot completely we occupancy. it about, significantly Yes. would could which And in of Is in last a as mean that question XXXX talked we I progression this world, I operated be that have that could fall significant the to to versus the complete all would mean boarding. we historically, better be of the that always of XX.X% hope But be expect, journey. in there's would going hope was we that in in second, they've Certainly, but environment, we -- our would fall would fall we

Operator

comes question next The Joseph from from Nick Citi.

Nick Joseph

self-funding a become development? dividend, Given what the on liquidity little in commitments creating thoughts the current development, leverage and in flow, some terms reconsidering to capital for are cash of retain additional the and more trying

William Bayless

Yes. it week, to as at will is. meetings Nick, continue be question. always the it's next a dividend our Board great Certainly,

Something very Board thoughtful will the and discuss. consideration that give to

the of cost a capital the as fact appreciate and is cut reliance calls. your same in maintaining you had or know terms the we've shareholders, sides We their always have both think upon earnings perspective appreciated dividend, favorable has it prior it, never retained to of more the of shareholders that on ability dividend mentioned, the of implement dividend. including and At the stability your Daniel I to capital. of retaining as your most We and us and commented company. time,

to is they of do. meeting. both they the will it purview it topic certainly, be perspectives in this of proper like waiting Board as So at meeting, those give And Board always consider discussion a at will Board every

Nick Joseph

just left And but was debt. some you what Hardship due through in kind bad And second was third know of the on have and collections that going quarter then are of parental also for the How Program, Resident the guarantee. quarter? I

much So I'm how going debt? just impact to bad wondering they're

William Bayless

year. Yes. greater Nick, this the related see related academic And numbers to large delinquencies. delinquencies impacted and to it those write-off we by do the quarter you in year QX, typically we in than a prior in prior much took also

to that of by enforce And to in regard. the right to guarantees in say, of on the past so through on prior of compassion waive parental COVID also have in all crisis, terms those so ongoing we taken thing do our and trying wanting year our period, did residents. proceedings we, medicine the eviction And terms

been For home the spend there's been a to residents, because the of have which rare written-off the -- no that a of COVID, -- made rent, most into beginning inability commitment would without with part, exception credit no those versus our without turning hard to one agencies. We that that. go to pay

to taken. it plans. payment And the so Resident where administered. We part enter undertaken, that portion Those was undertake that, be with significant those into of people and Hardship our medicine continue short-term that could a Program students did and were of was

new systematic with see year. somewhat and commencement is about, go-forward talked as the academic the in certainly, the basis, we really September you improvement On of the

student to private. affordable very As they're the that choice public that Also, of there were mentioned, intending, through we and intuition is what are as loans. the versus to recapitalize made financial university students students able the weight

some just to lingering in give we recapitalize people point, And the on a just eviction the percentage, small just do that the as in see very past, moratorium being less a understand, paying as those when federal given multifamily at in I you with not to much renters and renters supersede can come in in politically delinquency also cases, this area, have had delinquency to actually the some and rent. is you this locally to mentioned, ongoing and better the really, like encouraged, probably municipality something is said. have compared and do even still You look very multifamily your small of only XX/XX at really, saw a a choices profile. complete And the one, their have this also don't executives is I you think hardship there's that on where resident percentage see most there's pay that through being what opportunities moratorium we also, a proceedings Jennifer

And so want if you to, don't don't.

And little bit Florida small too, Portland, all We that so it's September. in delinquency. bit, of in you of a in really in have you see Boston, people, numbers, a movements very there's very a I across that Seattle, But this portion see strangely and think America. residential some where little to But impact as hey, as our don't small in referenced pay. is it's Church been to percentage, exists

Operator

from The Bank America. of Alua next question from comes Askarbek

Alua Askarbek

any you started if see the color year pre-leasing. just and I of October. to wanted guys the have So on to back XXXX-XXXX it, I most like go in have school markets, believe

share of what from for on students? students can How year? current are that. you just is next So kind demand at many options Anything that looking already

William Bayless

returning new. in in and off. our early it's on normal We're color not this are priority still student an first give about, always Yes, at year, we're the to process. very, The come off And we just on back then in efforts underway current lease-up. even that kicking talking point kicking ordinary properties just students at our very giving the time,

give really And to any early so too indications into velocity.

look bit you're obviously, that of as great forward. it last of was In had a in little have you still little April, that just year, then of expect X March, this the perhaps we're also and a all probably going have bit the future year in the a and cycles. tailwinds. a when trend. talked it. leasing unique you type velocity Pre-COVID, be year, last normal William you at acceleration we should we versus I and This the against lag offset -- year, exact that complete ordinary, Then a all benchmarking very think creates going COVID stop for at of Obviously, March May. to had about year activity would

when of start August way you that really get soon will certainly, to on we're we seeing. so comment anything towards And expectation But be our to draw could is comparatives June, and too to to where as July, to to years normalcy. fall hope, at be, significant terms going prior on of that that commented progress lead we where ending I've will the is already 'XX what toward least in

Operator

from next The Street. Green from Pawlowski comes question John

John Pawlowski

phases William, a on delivered. five time Disney. question year, next This have you'll

As you occupancy broader Disney market to market you or impairment XX%, year occupancy? trajectory back half and now program viewing the XX% you the are properties how next year, the frame roll as rental perhaps second a of of to just kind -- interim bit? a of Could Are of we as little X% XX%? the the going comes from help you

William Bayless

Bill. John, Yes, this is

moving through take that grab as DCP -- go have stabilized obviously place ahead year the The as taken in this where participants that just and commented, me deliveries initial the and lead, appropriate. Let with William that with would and instantly over. let have William been, and jump

into it conventional up. more putting traditional ramp apartment at of looking we're the Now

performing a we're so XXX And month units typically, of in absorption. XX, in the area

it's or path, can off. obviously, or -- go not right purview estimate longer that any yet a is just we slow absorption track kicking have exceed. down whether time so that into into that. we it as -- or We don't And rate on lead We're

program. out little as soon may have beyond units occupancy XX,XXX about gauge build-out when the as available open XX,XXX we be. the the And through much we on bit the beds, to current that of so to projections, could of we the Based what go a the market beds, X/X may DCP too our be think

where occupancy as successful going ties those absorption to all to they in so is that And relate available. become beds of the

have say little no we there has folks market. the that where investment we too referred all. going just to Everyone loss DCP type it. mitigating -- the legal do the documents and been the at the this. to soon want the right thing each it's by incredible speak throughout and open and ever a have they have that relationship one made income to by partners supplementing been And So of I at Disney of the in us to very doing from sensitive to other, to

William Talbot

XXXX. expect as occupy to in it, thing of The Willie. one DCP that still would that, interim, the We that's program to call kind the back-up is once I fully X/X This the add mentioned, beyond. in XXXX through the and that designed parks Bill beds, of open

So just want to clarify that.

John Pawlowski

levels Okay. they Or back -- expectations, how And for year. next with come the get going you park the out demand turned interns Disney with conversations on at XX% your it back? shake of their is second on to of relative demand DCP half then DCP like Is to expect to in the themselves? this pre-COVID

William Talbot

XXXX. phases No. It will of certainly up late come the in and ramp through back in kind starting 'XX, way all

change future current projections and of said, available that's right those through X/X subject think Bill the to based beds certainly, the Disney. XXXX, on or could we have we As of now,

John Pawlowski

Jennifer for Okay. actually leasing is curious are me. or properties have your above, any rolling if heading backwards? the primarily actually south? occupancy Last and sophomores one up is and And for piling cancellations markets that Bill,

William Bayless

Yes. once No, stability school year started. we've off, No, we the the hit seen mic been my -- was sorry, I great button. has have

So sophomores. XXX announced continue a XXX primarily pickup we couple have on leasing that update, that the time when actually XX, those from have leases you at in September look we see you'll at our to properties to

back. without that mentioned, exception, continued shape, seen Almost And did Board sophomore form, in the we apartment which only number, and above. sophomore year students up are and students year last is our small products for by or And have interest no so X,XXX at capacity a the for off-campus, about above, velocity. I had we the category was and that was I at to that XX% that than population. in our drilled not was sophomore first while particular properties also most XX. end we, traditionally But primarily as We where portfolio. across do continued trending, thereof into area apartments. that that in out that down demographic indeed those it and X,XXX really something to about, properties and those XX% come the of with some X first any When that dip want from in negative more designed universities see. look bps. typically When are among in dip of that diminishment About way, overall that had say, we have you It's a only year, it's we X,XXX XXX there

to kids seniors got never poor high enrolled COVID, having the and out as demand they continuing has online. upper-division to and school in now on. were semester are first we're students And their come their so have year through again, same great take first we this the with that career, I've stability are all -- graduation gone upperclassman once and have think And the and said before, that the students, their the and students that seen finish and about talking year we

that that certainly, those, we once of they again, X out we know so see that of they've ongoing same you'll delayed out retention have come, think their four the And see the -- that X then think experience, had normal for But college of college once over we to carrier. when for campus. did X X the that, come years certainly the

Operator

from question Alexander Sandler. Goldfarb next Piper comes The from

Alexander Goldfarb

a had have intro. you was that nice attributes The

So thanks A questions for here. earnings kicking off season. few

lower, First, a is going is Obviously, just of one, back thing so running. and number yield the is here and there, when X.X this years, to a clear, Bill, Disney, going we're up whenever in yield, fully the right? that's that to stabilized lot the just be between

William Bayless

interim twofold. yield the cast delivered into just XXXX, rather, down the the is And look performance, under believe, that year original mentioned, with market the new. and a interim, X or is someone's I that at housing, situation back slide not as moving interim as you every renew the better want it mean DCP multifamily. of units and for like is sign that ramp was taking the the years the staggered and we're when broader occupied to housing main stabilized, -- Also, is base student members economics, -- could I his to taking comes William as yields from Yes. interns, William that absorption going the we're the the current it X.X phase their Certainly, as going XXXX. the One, reason, of is kids open where next and the as rolls the Alex, in we're XXX% broader just nature to going DCP beds to to you back scripts, market, see supplementation it's the because over with up. of traditional these going because in the being renters, mentioned to a as and lease it program obviously

So we a is little are of discount to what market what offering we velocity quicker. bit think rents gain one, be, a would to

to materially between going that So are certainly, yields somewhat the and stabilization impacted. be now year-end

Alexander Goldfarb

meaning is structured, and the And rent XX% versus rent? So say, the of something you being as when how or lease-up as pay would to then Disney, rent Okay. ground the have that's heads commensurate? ground of is you Or the let's beds, beds? pause, far that abatement you of to ground pay the the rent, the ground waving that XX%

William Talbot

William. That's property would occupied, be becomes correct. is It this rata ground to as pro Alex, the scale Yes. root that. off the would

Alexander Goldfarb

Okay.

the on lot NMHC, clearly the next break. as far gap as question people Okay. week year this then coming folks at between And then just interface issues Last after Thanksgiving topic a a until not winter like saying, is there's some pre-leasing. was the back and it big the with of

the on-campus telling us you for for to XX% next are you XX% that employees year? that think friends next more on-campus? their try And about on-campus, think about give about How who campus really freshman, or freshman changes back what's do heavy people already your something almost to your prone which freshman are pre-leasing saying, how miss on thinking -- some want And would the Bill, the year, you guys freshman. to points to that really hey, college to the you makes exposure addressing data out didn't show. given to feedback what especially it come -- You and maybe have or even have you the

William Bayless

aren't high freshman the to you And are Yes. school got seniors. currently They understand for year next the even on campus. current

actually, that's the COVID place apprehension good to isolated prior took turmoil all say, year completely point, so this and the this of they college been last I have towns and at fall. would in that from the And that

or for university's think in I building fall, my process And of requirements first made terms answer universities, housing for any to any I all XXXX. Q&A They of they're relaxed so fall one, not in occupancy next I year that expectations the have going commitments totally almost made students. normal those all, comment ordinary say that the prior definitive can't in that do

guess an doing will So that their they're terms is would expectations that when their be My -- they that. and be acceptances until address indicator probably are. what won't May of in

universities has relying back progress, are so expect indeed cases, made would that has COVID their of it's most subsided heavily will And in more I vaccine to be more if revenue, so their and much indeed even enforcement revenue housing of source, we policies. XXX% their that upon are, or nationally than

to the in toward XX% universities is under at are. administered group issue motivated the one of much that they it think, that greater we return -- this need by I And on something indicator those at housing will certainly, we then year institutions look a look the again, than on when that about at you university more of that, the so of specifically regard you than terms When beds, priority and that taking place, to first in shy MLAs. our nationally, for the large And again, be XXXX. do. normal products, greatest thing, that are But

there And alignment so we think in regard. there's great that

environment overall, that think success the that in And opportunity don't bit. is As than the that. have opportunistic environment yet given I it the risk it enough covered purview diminishment. where the we the may to more spring, current little terms end But and of relates universities is up. what to see in a administering think the I what are of and and Agonizing again, how management just into fall, is, we already

Alexander Goldfarb

reserves X, or again. question, spreads, was having just wide then and to final week, the having cetera. it much a rates student tighter. are, Tier prepaid same of Freddie where et a wider guys And Fannie, Last even set you which And was basis up discussion XX cap reserves, there getting points for Okay. of reserves at whether are firm housing, lease-up the for is multifamily, time,

Fannie and sort a it sponsorship, there be Freddie of seem X, Given overlap. focus Tier similar lot like on would would

better really odd causing cap I don't paying it mortgage main a the that, you know time, are are one little So while whatever guys firm -- restrictions. product, what same lenders on is investors stricter per the still, rates at hand, seems debt, making And spread? this or or return but do covenants

So going or their going far here play better spreads rates on what's it's think as that that? as to getting either cap up? you out explains how backing And do

William Bayless

Yes.

there? clarity anyone in here cap headline comment the revenue on the the Alex, it forma for is or else one thing comment it William depending full have place And between think, the they certainly, and is recovery? thing, to the or… cap make comment terms is don't in cap you team what I that a of cap hybrid I'll don't in know just are terms what thing underwriting But and good a rate, I don't of on into the that of more I more variation if know, to? Or industry. you indeed on said, in more they that. the pro a and the lot I you of rate opportunity The know at the want applying in rate And William, regard. on may that regard, debt upside versus what debt, there's underwrite that The perspective. on first are on then And rate stability is

William Talbot

No.

transaction with those not line seen, a come think also that. On transactions. a maybe I you're pre-COVID, quality volume to seeing the ton are you flight cap seeing There's volume in, it's somewhat in And even transaction some do inside. really you've rates, on but of

Tier universities, focusing X really You're pedestrian assets.

getting interests a you're You're offers deep very strong pricing getting there. and lot of at

Tier as rather X As to you you is substantially. dropping market, demand that away, get further get

be So it all Tier also product tends markets. depends pedestrian to on X what Obviously, is. our product the

on a great the there, And that standpoint, and so you valuation the then But is side, certainly that's focused sponsor debt miss you very those are sponsor. have point. data less occupancy, properties there's If missed to the that asset, reserves seeing When a in university, have required. certainly from less go significantly reserves. occupancy

and check boxes, those opportunity there's now and those And so debt the X those. to X Fannie groups Freddie that are boxes check right and ample competing for

should a fit housing Student final is is other thing, of couple than If can seeing of and sectors, the you the of a or it risk-adjusted don't one when is on performing return. reflective then think tricker. those that. at what I relative the I rate cap And you you're really think boxes, debt be look better rates that cap some be

Operator

comes next Sachs. Rick from Goldman Skidmore The question from

Richard Skidmore

really managed schools able of the a Or vaccine? without person appropriately to will to do vaccine question on have a you in ramp-up a and normalcy. function that's place? the quick in Do think return think you a be Just

William Bayless

No.

the disease, minimal. to the in again, related I risk when a at to and think COVID, population from is look how vaccine statistics XX-year-old well. have while is the extremely of a impacted health having schools the actual to by XX impacts the absence perspective them you And done the again,

think managing absent time, terms vaccine the don't the does members of exist. lecture the staff X of a I how appointing process. what regardless are are I faculty in this out a We have shown accommodation faculty this risk Again, classrooms State, of something that so do waiting universities or Universities only out at is -- give serve, that's through in-person is that that excellently the think that care contrast, of only the and or university the shown And where seen up. that capable faculty appropriate, does that to the of or cases not and through understanding And a higher they online are having likely XX,XXX, looking we XX,XXX them and cases we have a have population. the they of concern environment absolutely just greater environment in vaccine think does they Arizona where in student include an largest of of as group have for. vaccine. By and managed to XX if staff set terms ability at

and vaccine just a what think obviously, is cloud I uncertainty just doubt not every takes it. off for our any industry, of does of industry, do, but for

be for I call say And so you other potential going that every we obviously earnings in to there's them. season occurs, that every -- think will probably and positive university will when earnings have influx certainly, this that a

Richard Skidmore

following then And just up.

was there call, front discussion quarter just some second can that you on Can the On around some provide? any you venture joint pursuing that is there partners. update --

William Talbot

quarter, We've got is made number of great continuing This is number we're and progress sources That second But we'll William. that update a we're looking next equity talking of initiative, quarter. opportunities certainly with a that we've process and to, since at. ongoing. still

William Bayless

when may to efficiency internal and back dispositions. growth over so I question drag to we scale we still, thing Daniel the weren't one the we the to undertaking, essence, of scale into other is And prior disposing on joint at us that be venture, growing related for our that actually an any a maintain in both The beyond creating ventures, related development our that key in dovetail years disposition for opportunity pursuits mass also the continue portfolio, dispositions in is the that benefiting to look in of the our within assets the to and scale, that that joint would liquidity of but opportunities, things is can at, answered pipeline, not while new that conjunction last that contributing also we of just in earnings from for in joint undertook couple get terms with that William most start interest we and the venture critical efficiency likely assets, activities rate. in that into look

of a a key terms capital got value portfolio of rather also pruning And And in like the We've the so recycling done it's of really assets years. lot We'd we we over and venture. in. opportunity. put joint our

we And many in would asset desire to of cases, joint versus an so dispose it. venture

Operator

The next from question ISI. comes Steve from Evercore Sakwa

Stephen Sakwa

clear XXX% be something. to wanted on just I

are not For fully the September folks. those rents in payment that collected, the were out reserved Or plans were those process of working for? you with

William Talbot

renters is a So it balance against the revenue is tenant then bad That's RHP they depends due Definitely, they're of and but protest on that's on there different. at that written-off amount. is debt. and -- -- part is We actually in not collectability any past that rent as of That's abated, the bad specific from through course, that have, removed forgiven and just any filings program, our and time, rental at debt. Steve. tenant, their reserve do look

as this go allow you been collectible, we do some -- in environment, and us we rules anything you have write-off as against. have But that's be that delinquent. that aggressive ahead is think to you definitely, reserved haven't to the So that

Stephen Sakwa

at bigger with is and redo of Bill, guess, kind Okay. that terms I do COVID as when the then, kind Great. program sort pandemic the to long-term question, housing reevaluate look start of universities to see talk of that they of And the their bigger you you some a benefits think in having the you and on had, coming a of out of impacts the basis? them housing

William Bayless

that And summer staff. and to campus Yes. of all we'll and thing focused and through every the the the think completely one say bringing appropriately, and making university on -- I fall accommodations the commencement so operations administration necessary faculty students back safely their was

on back campuses you opportunity in that institutions was with because kicking the is MIT terms we Princeton it should to But of next made we've there -- appropriate great I Princeton. college his those input prestigious meetings up. that got predevelopment, mission. of in MIT there mentioned now, and place, including three Virginia daily executive together. redirection opportunities taken read be that now every normalization when West and there's William the as activities Certainly, in script, a And some so there real has good are

in into that transactions And of -- timing indeed go And that benefit a not to it But XXXX, I the that so we that in only the large now of coming. income. is terms is think as base. there's X future pool a months broader should years of fee slid opportunity XX our ours

and large-scale bath beds, aren't seen schools As we year future one in specific they bath now the our stock we the maybe. the it modernization their major when -- partners, institutions had But schools have have the the Power done have consists are at talked first have not on-campus about, that we that institutions, these about universities community that talk in largely housing large of because XX% giving offering. occupancy and the diminished products. seen only -- X occupancy community Without that

so motivation housing having now And universities institutions believe of we now degree to lift high the and a there's their for modernization. to consumer the housing those the needs reaction through address stock, the

So opportunity it's post-COVID shaking he's beyond, he been that builds his Jamie PX and and though than I'm ever person head greater initiative, the as Wilhelm, that looking of XXXX at environment leading sector smiling and for us in down is post-COVID. the is

Operator

Joseph from Nick [Operator Citi. from next question a follow-up is Instructions]. The

Michael Bilerman

that's can bit more be just just the maybe you'll out earnings, can outlaid. Disney was calendar here with of year wondering And 'XX, market of Disney you million activities rent almost to with of of little least bit in Nick. for these It's more on $XXX FFO specific spend capital time program drag Bilerman I a all little deal. Michael terms a the have going the if at from start, where you

and you are going and sounds so to the get revenues given to rents going provide. it the And by you you're have to like the charge have significantly incentives be lower all the vacancy to that

because than rather offset assets be which the rent lack sheet capitalized interest, your at You'll those all the same will of ground have balance scale time. to will being on delivered, by now come that

of not spend. in it's terms the insignificant so And

many can So we now? sort right cents are looking you just how dilution of at --

William Bayless

what all available you to year, be turn because and that immediately in XXXX this was full units have will the a terms impacted in me as we the most available again, up. originally, at in it have in now at from of Let look ramp-up the everything lead-in, absorption give and -- of Daniel delivered it DCP. ramp been point time. then we're starting see to I'll are And delivered

at that the first mix The exposure of related have we have you these had going are the XXXX the don't place, weeks. of just the quickly discrepancy candidly and the one, in latter understand so the that. year. and this that differentiation is DCP And is coming with ramp up up we have that sensitivity in is largest is that I with the to no pro in ramp Disney half time Daniel, how and forma know kick-off all, until into not conversations the last X

don't going And if we're to... so know I

Daniel Perry

getting Michael, I that of ongoing on I we're be just of in also or dial started looking the a with that because loss between expect the these internship at that the how know program just we otherwise the offsetting first want cast on in by now terms back get their yet position projections to time can internship amount specific think next we're into revenue with year. call, in And phases. the think don't we'll we give the get the and And of of members a and some conversations to up market ramp-up giving or in for half we we terms better then we what program XXXX and much latter guidance, alternative in then Disney from Disney. few from from really in

more think time, much specific could I that a we by give you So impact.

William Bayless

of terms wrong comments not of components exactly in how you're in about. thinking But your the you're

Michael Bilerman

the But don't care yield. I it. -- as wherever are about -- eventual know million, we're $XXX was spent a at the And you into talking in on have Right. you going credit But $X.XX aside back to understand look, some there's top on drag I step trying stuff though the for I is right, to It to goalposts about guess XXXX, and give like if from stabilized if that now. of think I'm just of going here feels anyone the least you've that I terms year. don't stabilization delivering. that's people putting next -- if

you've good more which You detail still there's a just your dynamics million on. I have But bit is capital. the lot think of another going And I X/X that already all helpful. a $XXX done having little be way a spent, thing. you're would guess

William Talbot

in phase on you is ground think $XX the ground what rent I at mean look probably after of somewhere of of original the the million NOI net that, range I Yes. when and being contribution. yields delivered rent there was

the which that, in the some XXXX, to be We still get much out -- of find rent from that be, half have on are shortly. previously, in continue occupancy starting contribution alternative market year. is to to as we going can The will savings going we program we is to of pursue get really the we here internship to we're how answered bring that that have what it some And pro ground back of then the the offset as they the will get. to waive and to rata second William on return

we get $X.XX, about replacement. than you less know revenue because will probably XX.X the some represents it's that So going and to be

Michael Bilerman

idea back but and this different, had was you also this, it you you very to of commitment I Right. step box made. the guess on wasn't small your something when was that a and -- some out from embarked very business existing this it, adjacencies

towards your way it? back us it, at rethink call million, what all from any have And predicted step none this asset X%, you COVID happened base $XXX But this. X% could do and And almost of and I has there marked to of know is You what caused. yourself investment? extricate

William Bayless

is managing moment, if way, would DCP the in is did, absorption us, if developing goes and the original didn't Again, at surprised taking came market is okay, it what differently backups did worker where we to market in honestly, it and you are together. look are were that it, beyond asset we better strategy tenant X, housing and the we very shape, that they're care, question I wouldn't any for years can that a to part am when when the away? anything opportunity we at different? managing and of And have Greater this foresee this alternatives we mid-course we we do we this you And the it things we're think in built would when and great was, are point, in universal from implementing then Disney at -- the successful, what at and professional when where from it than One, what IRR hospitality be not The for this, that of we place. we is now at yields creates a the that that ask we But this But alternatives? economic plan that of any, that of backup strategy We here we big yield. What that much it XX negotiated what if having are pool. that phased extricate that market the terms or of day transaction, that the is development. and the program had be to terms ultimately, didn't form lease but ourselves. broader of are upon how implementing Orlando, -- want best need And Disney, the the that in the are. that did switch were build would announced look the the acceptable that was. normal is ultimate into but Now undertaking DCP context there's At the impact wouldn't the the ground you be provision, currently we're additional we we that, we are what backup that at. actually fortunate they're look would we if ourselves Disney's this that

to know risk get the stepped and we this, And so I the unique think and out box that was shape unique what stabilization of really and be into it. a when was be related we it think of it's also, that hindsight, and In full going the ever that assessed the It did we no again, everything in in timing -- is of play. then form, brought to way, when have I development say ground we halted. and that short-term what's lease could implementation aspect are time. DCP that we period to the again, conceived again, the basis correct now over we would it the the what put the on solid knowing risk of done of or COVID And do place backups have is a In did are be differently, good. program through would

were construction And stage you so I knew have differently. done was The that differently structured only that if wouldn't going market. have would that you thing you alternate into

we're the Disney say of transaction. the I very backup for the Also, about America in use. we're housing. #X Pre-COVID about And was excited excited Orlando would workforce still so market lack affordable

topic some on But locally. be market. there this is hot the can good of demonstrates been mistake. relief, no through so that's niche. a COVID impacts that a also it There has obviously And the multifamily Make this

yield, fully don't happening in of structuring pressure short-term being creates are in correct. the You think is it do fashion. the make terms impacts short-term did alternate and through proper contemplation we are the had transitioning. have There our and it initial then the that's were any contribution been and risk we in FFO than deal point that light our what of perspective material the form were if But that of And real. terms impacts the in uses real development there. stabilized the Again, thoughts that in to or I

Michael Bilerman

other Is off the sales $XXX the there's small million opportunity not new not like the into capital Is are that table a doesn't there to reduce progressing on incremental or... this updates any commitment And raising or sound amount. just capital. project? is

William Bayless

And No. that transactions, this. we from else announced the calls venture me say deal the ever of had anything probably we had we than Disney done. phone equity When joint more wanting let

through looking Disney do. we to that it's have to also of moving from to That's it joint forward did as impact to the still to about universities it to the schedule I something time. And reputational venture. College talked the committed in seen we on and a certainly, long-term it, building supplement very, ability relates ability this. know always Program We're And something to bullish investment Disney would the have in completing we with it out procurement it And thing company, and of we committed what want have We is ramp-up and from completion prospect of very other being of our our that Disney's it at of don't that has projected supplement, process individual the at colleges when benefit and are still and Disney build-out. capital the the so to we -- that point both capitalize the this the partner. in we the the an in the -- means of terms interest perspective.

our in we this the big from year structure of strategy look switching a it, certainly, the did there lessons in their we COVID so to on were in were concept. and of how got that transactions -- lot aspect of learned halls. from I when occupancy greatest learned comment fronts ACE Obviously, we our at all the lessons material community first made of Not just disruption our year, look Disney. of business. in residence And bathroom is modernizing And every part undertaking we terms -- being a on-campus one disruption through think COVID. need as the of We at thoughts terms some of we

will things with that of lot And learned so in I forward. also things grasp going think terms that reflectively, on and we management Directors that certainly do Board look we back of something there's our and team a a we of can lessons and as can

Operator

to session. over I Bill for closing This back remarks. concludes like our would Bayless to conference the turn any question-and-answer

William Bayless

recovery especially, want most residents first their community to continue America. deliver thank their pandemic to are foremost, all -- essential it's to the housing I the efforts American throughout and staffs, our and they'll to have in have that across services and our Yes, and road this team, that that And on. importantly, we field, resulted commitment Campus

us. So all I much. want to for things how Thank and We on forward look spring. foremost. And go you and you with you thank them at joining you in very many talking of of NAREIT, updating, to first thank the updating

Operator

has Conference attending presentation. Thank today's you now concluded. for

may disconnect. You now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.