IRT - Earnings call transcript Q4 2017 | Independence Realty Trust, Inc.

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Operator

Good day ladies and gentlemen and welcome to the fourth quarter 2017 Independence Realty Trust conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. If anyone should require operator assistance at any time, please press star then zero on your touchtone telephone.

As a reminder, this conference call is being recorded. to representative. conference like Tarola, to now Relations Investor would turn over the Lauren I may you Ma’am, begin.

Lauren Tarola

fourth year Good for to Trust’s joining you. us and Thank morning today review everyone. Independence financial results. XXXX Thank you quarter full Realty

the at Schaeffer, a is with Sebra, available Officer; at our being call Financial and webcast Scott Chief replay of President website Chief Farrell Executive on On the Eastern Ender, and are www.irtliving.com. IRT. webcast our be telephonically call XX:XX Officer, me approximately of There time. Jim will our Today’s via IR call beginning pm

over required Schaeffer. or Such Before measures our with With cause filings, may Please Scot we I update call this has be herein respect include respect and financial I’d from affect of non-GAAP to described Harbor directly results Scott, made reflect by financial statements results call. the materially most supplemental to and measures. SEC to financial call SEC be the there the XXXX. made of to to call. release, statements to Securities statements I’d this future projected. information financial does differ turn our that, good expectations what as measures factors responsibility during comparable Private GAAP events Within Participants a may like release, accuracy with law. may of call press of filings or to turn Safe the materially during like except forward-looking the Actual undertake expectations. differ to future those discuss IRT’s IRT substantially non-GAAP press statements from in and the for forward-looking These reconciliation this pursuant not to could matters performance. provisions information that views that supplemental faith refer IRT’s remind could current everyone are and to forward-looking Act over to Reform IRT in Litigation IRT’s

Scott Schaeffer

Thank joining this This us past transformational morning. year for was you for IRT.

capital our and future. lastly outlook First, our I’ll for initiatives, and recycling value-add second, our address the operations,

operational continue growth with multi-family strong levels our rents control. to NOI XXXX demonstrating ability to the under of and our First, keeping majority maintaining growth increase to of same our occupancy while expenses peers continued X.X%, store surpass

For occupancy XXXX, XX to grew points average basis XX.X%.

focused margin, We during which NOI our XXXX. to continue and our be on increasing was expenses XX.X% managing operating

growth, drive We are the confident drivers ability will the both of that averages provide to national shareholder non-gateway job value. population will our that rents fundamental markets, the and and outperform increase

in which transformational we year at and growth. and term several the completed investments portfolio dispositions positioned review, for Looking strengthened us our long

Class on legacy final as generate we and The XXXX exposure purchase November of properties assets sales pair adding markets. sold core core $XXX $X,XXX. properties of four of selling In market we look the recycling upgrade subsequent initiative. an rent individual our our our while monthly to C target rent three average strategic B through adding the aggregate, while of continue will of scale to portfolio Class XX, properties disposition the in our by The acquisitions completed asset assets. us Xcapital allowed markets XXX First newly communities purchased recycling had we in monthly while our in the additional

dynamics, growth. that offer markets sustainable attractive have in non-gateway we where acquisition long increases acquisition team management portfolio. our first on announced transformational already previously under our across on market operations of internalized term, our and communities This Next, aligns clearly our shows our to presence and the final enabling properties the we existing of January of closed was X portfolio two long nine-community owning acquisition commitment accretive the term with supply-demand focus This strategy. a middle MSAs

acquired recently We value-add through year. also see select this portfolio NOI in projects an opportunity to the further next over grow

a close impacted until were this equity properties, fund and comparison as the acquisition. we not the to Due quarter over with January to fully nine proceeds the raised our the quarter FFO timing help this September to X, of raise year-end, As core reminder, two in equity XXXX. happening subsequent invested

though to subsequent we we on fourth in a markets. purchased XXX-unit adding to incremental further we Additionally, community our incremental recognized the by end significant see to return scale of expect majority investment target with in of beyond initiative In the the target Overall, of to our a the in execute NOI initiative. Columbus, $X.X to value one believe be returns of value-add that on XXXX year quarter, Ohio, and value-add core XX%. XXXX, created our aggregate, we the benefit cash-on-cash add portfolio. annual approximately million will In began will

Our wages it is to will a increase as for hedge against increase a ultimately bright the with inflation. - which outlook the economy and low unemployment future continue and rents, afford any will opportunity is along to is us corresponding the for positive multi-family owners, rising income discretionary

with While to volatility remain there portfolio to opportunities in unchanged. in capital business markets, remain is our our liquidity fund want the investment ample strong fundamentals our we the stress needs, and

and move our we remain markets. opportunistically focused on while we’ll through improving portfolio growing presence in XXXX, core asset our As our class

capital Jim turn our an financial and to the over capital onto of for our and in-depth guidance. projects, transactions, discussion and value-add then markets, I’ll call Farrell? structure, results, review XXXX Now recycling Farrell to

Farrell Ender

Thanks Scott.

to the the our We fourth occupancy across see growth majority portfolio high continue and in rent of quarter. stable

our Louis a X.X%. was was grew seven in at by X.X%, X.X% grew were generating X%, St. and was number X.X%. elevated XX Our X.X%, revenue operating by up of Chicago of same net X.X%, suburban revenues our markets. up Columbus Indianapolis X% of store income exceeding growth store operating increased across markets, and expenses Same revenue up

new revenue basis in elimination due community with primarily occupancy XXX increase compete supply were Our of a growth that necessary one to largest of Charlotte in This and in the XX%. to experienced point XXXX. was the concessions

X.X% markets continue the Orlando growth X.X% Atlanta some to Additionally, and as strong both with impress growth. of and saw population and of job respectively strongest revenue

the XXXX. more outperformance has late has next mature city Our closer the ability in the Millennia Atlanta’s population significant new A well Orlando Orlando more rents. increase the supply has faced continue outside is suburban midrise supply adjacent growing as drive and ability new in specifically in markets to accordingly strength and absorbed as areas property to softness and the to given rents strong to submarket. community new of begin Millennia will growth. well historically lease-up center. the over in the Class to job may always the its with some but It the city community stay highlights one managed occupied in A to months, ours a submarket the see we

same the is several there located companies store the of north XX X.X% hub experienced south. skilled The city had this first rent growth average technology our property community tech community of and in in operating an revenue and area With an miles jobs, the in of portfolio Alpharetta, wage A high known $X,XXX. three of providing as Class

concentrated rents for The entry. other high and in two one our Touching constrained barriers Spring up briefly reinforcing revenue mature the infill to push around markets, much city’s communities submarkets X.X% significant employment revenue are on ability in combined in with two was X.X%, located in larger beltway, and growth. suburban the of suburban of locations communities supply exposure was quarter. the where of these growth are Smyrna, Louisville job inner The Sandy with which is our

Ohio benefited home hub believe has the Louisville with both Worldport. bridges, two from UPS’ continue next logistics to city private The Bridge revenue and River X consisted to and new consistent growth expected as We which increase stable, year. the reputation will recently investment. of will The $X further over project, provide billion city’s growth to completed X% a building public

Additionally, International in the the X,XXX year delivered burgeoning the of tourism Center. Convention the hotel million rooms and to have past Kentucky support $XXX expansion industry been

continue challenging. Our Greenville’s revenue Charleston Charleston’s revenue to Greenville was be X% and during XXXX. was down markets flat and

XX.X%. XXXX, new of Revenue add projecting X% these both in inventory, projected XXXX another to new Oklahoma we X.X%. of added of construction. directly be inventory units another in City, or is in from added units mentioned XXXX Charleston this as X% with our inventory and growth gross X% total fourth total and its are assets, in revenue in occupancy these which to during improving, the and compete add is slowing last X% XXXX. X,XXX X.X% of with only properties Our growth call. Class in are its we Greenville markets to projected of X% our XXXX. pressure the Because markets In A quarter of represents now on was X,XXX or is

we XXXX, are forecasting For revenue growth. similar

this the in portfolio nine-community September closing have completed remaining X. properties our on with our acquisition on all As onto Scott fourth staffed communities trained platform the closing three the mentioned, also X fully the point, the employees quarter January we integrated At procedures. properties and we two on the with announced and been successfully of

our management improved criteria generate tenant have base. practices, will We which revenue raised the implemented our process, installed management and rental

the a the active over we of months with our growth program the addition, lower generate we $X.X In at operating hands-on next With with believe six value-add portfolio expenses. of properties begin a management, million. will cost revenue outsized will five total

XXX-unit we value-add to spans United XXth range companies located Cardinal headquarters and Columbus, once Insurance, to The long-term University, and Honda. market. also aligns January X.X% job the expansive including the steady for L it fully economic investment our are Columbus, a combination of portfolio market is of State an acquired and the job having factors practices expect NOI the making a rate. community the is cap Nationwide city best population perfectly core provides with in also million of and an Ohio market and a a property On our a $X driving Brands, growth. talent in industries strategy $XX.X Columbus growth States. that major This several additional largest outsized are Furthermore, was in there, We for has Health, population representing Ohio. of X, an with flow wide has million, growing additional generate purchased implemented complete. Columbus the to

want conclude I an projects. update Lastly, with value-add our to on

X,XXX identified excess generate of $XXX We XX communities which XX%. coupled units monthly anticipated an rent savings expense totaling We premium of average have of will anticipate a cost $XX in returns approximately at with when million.

units the in call deliver balance the and financials. Jim to for With target an the update X,XXX on over are XXXX. turn to in that, We I’ll XXXX on

James Sebra

Thanks Farrell.

review review performance and guidance. capital brief sheet by with ending earnings XXXX, our balance followed and XXXX operating for our we’ll First a and of structure,

million net associated Full-year XXXX income management internalization $X.X a of our due common was the transactions XXXX. XXXX. shareholders XXXX, common in shareholders to as compared in million net with during our to to a loss to to we million available and quarter million costs $XX reduce series available fourth of management For the income was internalize of completed the quarter Remember $XX.X of versus during quarter, loss of $X.X a the leverage. fourth both XXXX

such, penny growth XX, up year from XXXX core store and operating the and full in rates fourth by quarter and in fourth the to the share share per share adjusted December XXXX for same in turning XX% for FFO expenses the store fourth to from XXXX. representing our grew continued we X.X% dilution the earnings. million. managing into of year for to quarter the to As XXXX. comparable the EBITDA XXXX. XX.X% of EBITDA full bottom available grew on Full of XXXX NOI while transactions portfolio X.X% for driven million adjusted the total NOI XXXX continue not basis X.X% are average internalization saw rental year was level directly revenue dollar points over which to deleveraging reported in results X.X% for of X% the was occurring amidst Core every increase in X.X% $X.XX per line transformation. of in year. expansion our to $X.XX and FFO full We Same ended grew down increased XX full the Same in as per the focus margin, store quarter year. X.X% Both store year-over-year Fourth consistent and and for results XXXX. $XX We full-year occupancies one quarter fourth revenue expenses that quarter the year year, same during some the $XX.X were property increased $X.XX year-over-year due of quarter occurred in

the goal during compared externally XXXX reducing front, we of run rate On our G&A to as G&A accomplished as historical managed our an REIT.

all of points XX G&A lower our $X.X stock-based of peers. assets, XXXX, was than For significantly basis our small excluding our million apartment comp gross or cap

end of and $X.X aggregating total finished assets billion to with $X.X up sheet Turning properties we XX at gross balance year our capital billion, structure, from XXXX XXXX.

our while recycled assets $XXX.X own properties by and During to both Columbus markets, C gross key in properties Since increased debt our our assets of year-over-year increased Indianapolis. we including we XX%, XXXX, our of XXXX, out total increased Class all X.X% in several the of and have presence have the rose gross number and million.

XXXX gross assets, both debt During by EBITDA improved. and to debt measured leverage, as our net to

Our total on at debt a ratio from gross XXXX year-end to XX.X% points assets year-end XXX basis XXXX. declined XX.X% basis pro to forma at

pro our basis had our is net pro Our X.X XXXX from no EBITDA with a some on XXXX, on and to supplement. then. quarter debt XXXX. XXX% acquisitions through in to effectively times actual basis maturing rate fixed times an Because reduced additional early fourth until year-end on X.X provided metrics significant XXXX debt XXXX, we a leverage forma At was for we’ve forma the in debt for

equal completed million LIBOR by with we rate seven-year term basis rate floating leverage. that maturities. entire an on our active to net and average inside term during raised shares of points, the market of basis price proceeds term. interest QX, the reduce we for our a and of loan unsecured freeing was ATM effectively We XXX interest an plus this our credit, to similar the outstanding Today, an points $XXX rate unsecured fourth were loan borrowings million. based fixed rate on the rate revolving XX approximately for were common on issued interest quarter, a to collar approximately used plus We During LIBOR transactions. spread $XX.X X,XXX,XXX $XX.XX. using on equal up extending line liquidity seven-year at interest The Also proceeds

initiatives, this progress through our One strategically of strategy make expect NOI improving assets. is structure organic term longer unencumbered make front growth from value-add continued and to to on in recycling continue NOI capital. capital growth, We and our progress our our increasing part

XX% after pro As increased priorities: our XXXX, our close basis up at a the unencumbered from previously basis, as of of assets assets year-end By total unencumbered year-end on of total a the portfolio forma to XXXX. XX% acquisitions, NOI a our forma pro XX.X%, percent Shifting to where to our drive mentioned our growth on focused continuously reviewing executing as mentioned, appropriate to and our NOI improving on represent into three capital and XXXX, scale of and Scott initiatives portfolio. improve gears operations, we are recycling value-add focus. outsized on

of share. For is guidance range our $X.XX to XXXX, for FFO per a core $X.XX

between same We X% This reflects revenue and X%. our expense expect organic X% growth X% to and NOI of to growth expected growth at X.X% operating X.X%. store communities of

and U.S. will will provide composition economic well the geographic portfolio benefit comfortable footprint continue our housing. non-gateway our apartment we markets outperform as with helped level ultimately of growth more revenue than the a increases we saw growth trends demand for to as XXXX higher We believe allow multifamily very Further, market. we that will growth, dynamic. healthy job drive While and GDP modest core in expansion supply-demand our occupancy to will macroeconomic asset and in that strong environment this feel expansion favorable as drive of and believe continued a a indicates anticipate anticipated tailwind drive remain both from markets a broader migration for

expenses anticipate operating are increases taxes inflationary grow in outpace to inflation. we insurance expected with controllable estate While to real and pressures,

real XXXX. in for we successful but We of MSAs properties are these planned limiting being are cautious reassess and were several estate First for during on that in XXXX our taxes, annually. increases,

from insurance, the significant accordingly. will XXXX’s given for storms preparing they severe losses sustained are increase premiums believe and insurers we As

X%. harsh across winter XXXX. will as weather, come much growth snow lines QX, online. frozen growth to Removing growth QX the store of NOI resulted of program year removal incrementally seaboard same anticipated expenses same X% in NOI than the value-add the of higher related to of we eastern of the conditions up Additionally, effects These store benefit throughout in to water anticipate step on an begins for our store same expected to weigh and during NOI our range the resulting conditions the costs

the we expected NOI, As total value-add of anticipate million are XX during approximately $XXX,XXX $X.X Scott due timing to of incremental though and only Farrell to realized be the generate projects of mentioned, a construction to XXXX.

Additionally, and guidance. given execution no we the assumptions our in capital around timing of transactions, recycling full-year uncertainty future have made

recycling you our to going updating continue in capital forward. will We on be transparent efforts

Lastly, this as a transitioned to previously distribution. mentioned, dividend from quarterly a quarter dividend monthly

issue that of to I’ll and of expect declare will the Scott. a dividend to middle the March by With turn at directors press board We we back that, our call release time. the

Scott Schaeffer

the at Thank you, Jim. call this to Operator, time. let’s open questions

Operator

[Operator instructions] question Our first with Drew Babin W. Baird. Robert from comes

now open. is line Your

Drew Babin

morning. good Hey,

quick there in things don’t - where if in you’re to to presented your sort you in the rank your sources range guidance, portfolio as itself, see range can right and opportunities where you way is the in but they property FFO growth one if obviously guess goes, capital equity and you Just like talk now? continue should as question about of anything B I quality you right acquisition your of pricing far about to that B-plus the be, thinking per opportunity do your potential markets

Scott Schaeffer

Drew. Sure,

prices, stock opportunities. interested recycling we’re issuing for we market are looking to equity portfolio the current however, fund at obviously So not in at acquisitions;

whether like look the after current make new what acquisitions not portfolio these we that made markets. being As would, some constantly transactions that see our exposure But target I more it to in as our we growth environment. appropriate, we’re where into in individual if to one markets recycle don’t will weighing pair happens sense, of will it and capital stated, or the additional at goals is and sense looking

Drew Babin

in the should guess of hesitant, dilution words, to I if you earnings capital, other was that to would any going be recycle you to some just temporary guess, be So drag? do type other opportunity cash maybe I see there than

Scott Schaeffer

Yes, absolutely.

of interested to to sense Our both leverage, sake growing us stated, growth. reduce sense and I’m just and long has term not I’ve which again be it as company’s help to makes of to for goals, one make to is the when to always support goal been grow got the our goals. earnings It’s accretive in for also

Drew Babin

me. for helpful. all Very That’s

Operator

you. Thank

Keybanc next Our with Austin comes Wurschmidt question from Markets. Capital

Your line is now open.

Austin Wurschmidt

hi. what most focused Drew’s the is same the of here big growing you on Good and pipeline question, markets along today? acquisition Kind lines we are the Yes, as sit morning. portfolio, how as

Farrell Ender

The which first Atlanta, in through growing. answer your in the question, to we expanded look are that portfolio we’ll Columbus, nine-property bought, all markets that to and continue Indianapolis at we

focused tremendous Raleigh about we’ve supply, national the as we’re the which actionable - opportunity that fundamentals lot Orlando are was have markets on of sale, population seeing a pipeline we have the markets because in so January focusing the our pretty have job all amount on is that’s growth, and what’s NMHC, mainly and in We and Tampa, robust a relatively now properties that for now talked in growth, of which just mentioned. a limited well, were conference pipeline and launched where I

Austin Wurschmidt

out assume seeing that what matter funding side. there, a that guess I opportunity the and you from is reasonable perspective characterization? just the and a it’s is disposition the those what opportunity it’s assets a fair Is of on So pricing to are

Farrell Ender

That’s correct.

Austin Wurschmidt

any markets what individual you you’re on more selling markets, near mentioned trading term? focused out of pair sense out when of Then

Farrell Ender

about into. in, it’s into, asset, the may markets where that single at would if single expand may we’re know are it process. that those where a you Huntsville we’ll those in Scott at expand don’t a fit asset When a necessarily have we match of not to with grow markets if in be those we to be Tampa which we at one markets talks two markets long-term us. we Austin trying not able we’re actively asset it so are one and - But opportunities sale constantly we’re have looking looking the that type look Orlando, and property for We’re and in

Austin Wurschmidt

towards year? Then the us you revenue the a that stack can higher helpful. markets as for as or the end far growth That’s as X% above guidance, far what X to this up as you give assume, range sense of of high of

Farrell Ender

markets the Yes, on A I call. so we’re really range touched what up Raleigh, that high good Atlanta, talked provide mentioned supply-demand be the with projecting on lot markets of under of and past. which in imbalance we that job that to on really XXXX about briefly in the that it and of inventory were high XXXX, we’ve population it’s and the the are properties, X% XXXX, that the growth, growth will Orlando so Tampa in the again range

Austin Wurschmidt

Okay, growth far you’re growth, based that from just Jim, with then end, at also leverage projecting on put does where last revenue curious to that as me, year the you that one as year? along X% core just this X% for

James Sebra

end the X.X XXXX, should be of X right times. to For around we

Austin Wurschmidt

thanks Great, guys.

Operator

you. Thank

comes question Brian next William Our from with Blair. Hogan

now line Your open. is

Brian Hogan

your Good for acquisition question there. what is With targets focus that morning. time, leverage I was leverage increase leverage you but and deleveraging Obviously to curious on A range-wise. your your what over are just would on opportunities, level? follow-up

Scott Schaeffer

No, to leverage. we’re not increase looking

do one we value-add way. reduce reduce to acquisitions. benefit acquisitions, be grows Our If as through continue initiative. will goal our the to organically from it. that’s for we so also and reduce It will goal increasing it is see that as can is not leverage, the But over-equitizing to the NOI we

Brian Hogan

of can you time? if target over and Great, remind me your

James Sebra

low Yes, debt gross time net the to to low in and XX%, debt are the XXs, Xs. leverage targets over low a EBITDA assets

Brian Hogan

right. All

that projects you cap adjusted With properties, just doing can you the properties that if what for you then and is the rate? acquired, adjust the those you’re on cap articulate the value-add rates,

Farrell Ender

implementing efficiencies Once that all we and will complete the in the stabilized NOI the roughly that value-add rate X% cap mentioned. rate. on a So million of operating of created basis, we by we bought procedures the standard our $X that’s a X% portfolio value-add, cap being be and economic on implement--finish

Brian Hogan

the reform, step market, tax strength and on but home back, your you thoughts is I think? right. to your what and [indiscernible] term, it ability rates or a occupancy the range, got Obviously longer is the to mentioned is target shifts, it rent lot taking you you’ve about still push a further? demographic do market purchase you X% talked on Scott within All call, of but what given Then the know X%,

Scott Schaeffer

Yes, there and in I think our I--you markets rent-buy X% interest analysis to to know, that have it’s more where and will rising rates, into home it’s we’re are purchasing but renewal the relatively exposure minor, some impacting X%, seeing we favor. that believe environment a I rate move do

with I we A reform that the the B of some clearly all will tax markets and assets think $XX,XXX anything, but Clearly are, have, a in of we’re competing well. of act, bills, real tax as estate have our some A if assets, in. not be factored to has so benefit we be houses that

growth of we’re I forward. kind that on for well positioned that balance So going think

Brian Hogan

occupancy How Have you the last me. one portfolio--or any Have churn? in any from does you seen it change change in that? material seen over? fast One the sorry, turn

Farrell Ender

about dovetail to monitor our throughout and we’ll It’s move-outs. for XXXX we and on and homes, changes, to to obviously calls. you range response, No, see Scott’s move-outs XX% watch we’ll that if update new just consistently that on the stayed

Brian Hogan

time. you right, for your All thank

Operator

you. Thank

comes Bank. question Vincent with Deutsche Chao next Our from

Your is now line open.

Vincent Chao

morning Hey, everyone. good

Can occupancy that break bit. as XXXX. that a you NOI down of maybe value-add expect wouldn’t wondering you’re little down some rate expecting? but and outlook just X% if much you talk gains between if growth you can break X% the that this about just year, Just It growth, the occupancy, sounded for to curious here could like you revenue

Farrell Ender

rental X% that, about is value-add and rest the Yes, is growth. the of rate

Vincent Chao

then? should occupancy we expect flat so Okay,

Farrell Ender

That’s modeled we’ve and forecasted. what

Vincent Chao

it, in terms rates Got and underwriting, think what about in but like overall could for for Chelsea things we’ve IRRs like remind what’s to sense an the talked for us for that, maybe and for right your capital the just makes acquisition cap instance, okay. as the you are if to today you going your the Then these of pencil, IRR cost Chelsea? spread that of about projects, expectations the

Farrell Ender

was cap I the rate. underwritten--it think X.X Chelsea, economic a

below is of slightly--given so proceeds for cost see slightly typically like to I capital in low pencil is in that out. rates order Our raised that, Xs the think them cap we we X.X, ATM to

Scott Schaeffer

don’t a Scott. and is assets don’t reluctant know we like basis are have also cap a fund acquiring be. stated exit a I’ve always hold going been This what might period have, an we little to be on IRR because to rates

in the going can anything have you changing what’s your platform in capital return of want and our we’re more IRR assumptions, make be You cost by value-add a what going X our and it’s those to to just analysis once interested so it then what’s management and property to place on return any Year we done.

Vincent Chao

for Okay, thanks that. Maybe just question. one other

how of renewal and spreads, sense give tracking? just terms a the you those us new are of In can

Farrell Ender

renewed they tracking were leases so at X.X% That’s through renewal leases, leases. X,XXX couple--you that to or couple about and a through still vacated than renewal work hundred we’re quarter on about XX% process, we renewal either spreads know, March, so we’ll the probably year, see out be seeing need it’s better on there X.X% they’re first new rate. last actually, Yes, on as that and through there’s a

Vincent Chao

great. Thank Okay, you.

Operator

you. Thank your the on ask order then gentlemen, a telephone. one reminder, press key Again question, please touchtone to in as and ladies star a

next question Massocca Our John Thalmann. comes Ladenburg with from

is now line open. Your

John Massocca

Good morning, gentlemen.

interest the what by any in recent rate Given seen market, seeing you moves acquisition rates? driven the cap you’re have expansion in

Farrell Ender

the but lot it’ll Class the you a market. space, know, some to a lag and there’s people being work not as last I forma pro delivered. I’ve about been supply a some this mentioned rents ask. that yet there think the new as of to for Class rise are there’s a you the properties the B in concerned in I supply maybe are on through these for it space, movement, treasuries, and a has interesting It’s the liquidity take actually seen--and call, In on as quarter waiting longer - getting lease-up percent, so we’re B just time

John Massocca

going of is to So any it been there’s are you you’re supply really expansion? B because tight is there close it in see to saying the just reaction, deals already need not a transactions you because space are there’s hasn’t enough and Class that before there because there, that kind many--is so or on there out that going are think

Scott Schaeffer

know, come they seems the the between moment There Buyers looking but modeling--you modeling a sellers sellers. at rate. have might buyers at to interest a rates be higher selling for rates higher of not and be cap the cap to side, disconnect are on that acquisition yet higher are realization because

from having increase. a I still--to do that moved still disconnect cap So the to there’s to keep but rates that Farrell’s rates liquidity bit done seeing, they’re this I without a what elevated there’s invest the moving looking Class and B interest expect we’re time in getting at B up, rates cap of little If people assets expect stay on or enough enough point, I should them much move. time. will space over say, would there’s

Farrell Ender

the were closing of lined debt Yes, their up into locked rates. remember they now, most much people their had what’s of and so

properties. and going debt treasury the process As pay to re-priced is and quarter what to second at impact higher now returns they the thus rates, they’re get through through people’s going and for as that’s the sale third

John Massocca

Okay, on makes the the more been pressure property you B sense. talking your Class or properties, you’re Then pressures about any on A seen supply Class supply actual has focused segment? all have an on really side, supply

Farrell Ender

if markets will been as one supply. in different stay our that Class resilient it’s a really portfolio markets very renter, selected A we’ll of that Like can’t supply, on It’s continue has those the and been support I that’s resilient. where it see, - they Orlando said, completely so

John Massocca

Makes at the in point, players labor has expense pretty is seems sense. and think What Heard pricing one talking up XX%. lastly, your keep supply how up. do other guidance some reasonable low Then you allowing gone number? controllable - that growth for space have to you about gone costs contract

James Sebra

continue we’ll we our ahead looking the it been so contracts at negotiating to monitoring effects minimize keep that. time the focused well Obviously to do best just the We’ve can them that year of and within and of we be that throughout can on range. guidance with

Farrell Ender

leverage in like Jim’s Columbus more markets Indianapolis, larger reduce helps scale contracts point, To the expense. having and the given gaining these

John Massocca

it me. that’s for Okay,

Operator

to questions remarks. Thank further you. Schaeffer any the any for like turn to I at I’m time. would call not back Scott further this showing

Scott Schaeffer

year was XXXX transformational IRT. you. for Thank another

internalization management significantly created our prioritizing portfolio, in no that enhanced scale recycling leverage we existing markets, in and time scale of composition initiatives ratio. and lowered improved target new our complete, capital markets the in the With wasted of our our economies

for joining quarter. today XXXX, further progress. and evaluate we forward capitalize we you look we with you portfolio to to As continue will speaking on us all our forward next to look this Thank to

Operator

and thank conference. for Ladies you gentlemen, participating concludes today’s program. This in today’s

may day. Everyone disconnect. great all have You a

Independence Realty Trust (IRT) 20 Feb 182017 Q4 Earnings call transcript