IRT - Earnings call transcript Q4 2018 | Independence Realty Trust, Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. We welcome you to the Independence Realty Trust Fourth Quarter and Full Year 2018 Earnings Call. [Operator Instructions].

As a reminder, this conference call may be recorded. I would now like to turn the conference over to Alex Jorgensen, Investor Relations. sir. ahead, go Please

Alex Jorgensen

good Independence Thank and Realty results. XXXX and us full for to financial review Trust's morning, you, you everyone. joining year Thank fourth quarter

website CEO; me Farrell a and President replay telephonically, will available today. our of and is call Scott On website Financial call Ender, today via Today's of our webcast call our Chief the approximately with Schaeffer, the Investor at webcast be our noon, being Jim IRT. at Sebra, Officer; There Relations are: beginning on on www.irtliving.com. Eastern

turn good made our information financial statements Before current for differ Reform call. could IRT's like expectations. be to Actual cause are substantially differ of Litigation harbor safe Securities the performance. Such These factors IRT's that from call in forward-looking I release, remind may and Private results future from reflect to statements views the results IRT our XXXX. or I'd could materially faith with over to there has materially this the of projected. those the accuracy forward-looking and SEC to respect pursuant Scott, at refer to the or filings Scott this required statements to turn by affect filings does over link. update with what undertake press in website be of provisions reconciliation made recent Act supplemental events forward-looking available Schaeffer. everyone expectations that the to Please that, my Form and herein, Participants supplemental GAAP With statements may to IRT's financial respect call may under non-GAAP as comparable not and information, SEC on call is of are current containing through it's available this Investor attached matters except information discuss IRT most and of report the release non-GAAP the financial IRT's IRT's press financial a measures statistical law. to Relations. during measure to copy pleasure this call. most measures X-K IRT's in with A financial direct other described to other information future to

Scott Schaeffer

and bringing Alex, was morning. you, to initiatives, for a commenced value-add immense for us this Thank joining portfolio. IRT value you as transformational our our XXXX thank we year all

focus results underlined growth tandem in made we've you properties right program, on with our then update by be value-add to This recycling continues first right long-term Our the for to initiatives. markets. organic quarter capital fourth which capital in recycling progress ongoing will and the our our morning, driving operational our and the reflects address I own effort on the

Lastly, I'll provide an overview through XXXX. of our continue outlook as we

quarter X.X% XXXX, fourth of For $X.XX per XXXX. the the X.X% the up NOI XXXX. growth from share and quarter, year $X.XX of fourth quarter in Core of FFO for same-store the reported was we for full of

our projects the are our capital. remains As in to impact we NOI execution. to accelerated of incremental are program precipice cornerstone the plan begin value-add we're growth To will our report we of pleased strong unlock value-add And on end, discuss, our as see that our portfolio. invested value we at of returns the seeing to our

These on As XX% XX.X%, XXXX our of representing our of premium of value-add average units year-end, X,XXX were rent units leased XX.X% strong ahead leasing completed, of of demand with interior completed spring driving our renovations. season. an an over return are the producing renovations

communities with common these A the also we improving area a much younger lower as price but at amenities to point. are Class position properties We complete

additional in an X,XXX renovate to expecting units value-add are we communities. our XXXX, through Looking

Currently, annual to the $X identified NOI million of seven the million we approximately long-term initiatives see portfolio end value-add review a XXXX. Our of to these impact continue value-add on from to across currently $X units We projects. course. incremental communities. X,XXX pipeline our remain full generated the by And returns additional have we expect to of identify of additional

work in the can value-add as underway. We we these projects additional in and leverage through have developed additional commence efficiencies complete thus are project markets projects we to communities projects are which Many far. the Therefore, already when and existing teams evaluating we operational of in these we've process.

the portfolio at other Looking our efforts. side of optimization

We Florida continue completed announced in XXXX. out capital for against to November, our $XX community laid of execute recycling million. we XXX-unit Tampa, In acquisition previously in the goals the

December in million. Additionally, we completed $XX two disposition approximately of the of for communities XXXX

are our we to in are exit Jim in and markets no opportunities portfolio trends. provide to expectations fundamentals will further for scale capital In longer XXXX. a more looking details favorable for our markets presence on that around activity evaluating consistently positive which The recycling and those build moment, and our displaying paired We two our maximize see drive with identifying long-term years further will continues portfolio be a The to the to value-add XXXX activity, unlocking in long-term value past come. recycling we've us infrastructure years, in XX% transformation efforts, our value-add for in capital portfolio In our we've to allow critical shareholder grown initiative net value. units and by built optimization. the will portfolio markets

is recycling has from the right out ideal growing and phased Additionally, non-core acquire program to our assets in markets. communities capital core supplying The markets. growing capital portfolio our while portfolio in

laid we long-term in throughout growth level, economies be non-gateway population outpacing in drive our and leveraging core with substantial On average positive pipeline. a identifying and fundamentals opportunities to year to these multifamily of job value-add both demand cities the the as come. national macro strong us markets, the as in to our positioned grow continue gateway growth. XXXX scale as we've groundwork This level for well are MSAs has property at We and success

housing renting In rental solutions that construction demand survey these This additional generational the of country. apartment and further around by XXXX housing experience company, With in purchase to which words, that continue increase supply young in IRT research the over evidence well to we Accordingly and for trend a reported nationwide. we renting to further We leading positioned as are this X/X turn accelerated living are and X% next was a limited years. adults the Bloomberg summary, drive to the I'll solutions Additionally, home shift millennials look housing service impact Farrell. other posed this to see cost we wait as rental In affordable and less XXXX. continue say highlighted is as to residence expected single-family continues provide a call to effects the growth of continue XXXX of in recent beyond. over crisis five that, a than longer. to they to to earlier want the while year month, who respondents by an

Farrell Ender

into across We and Scott, everyone. in executing executed portfolio value-add quarter, fourth outperformance quarter our respectively. fourth same-store progress Thanks, XX rental solid and key and rental with X.X% saw rate In across XXXX. and on morning, increases generating the achieved in fourth our We our have XX markets. portfolio with good quarter new revenue the growth, X.X% significant in we of and the solid the momentum in markets going renewal growth leases program made a

continue X.X%. rate a the quarter with see of first We that in increase blended rental to momentum

NASA NOI consecutive few center, I the the markets. and Now quarter, which is and XX.X%, growth, a for Huntsville Proportion our in achieving to on Jet revenue the Army's of provide missile led and XX.X% Redstone respectively. second command contains Labs. want the portfolio updates Arsenal, Huntsville,

pressure. building educated, basis which points supply for manufacturing X,XXX a years projected Overall, minimal XXX benefits Mazda highly coming and job by from contributed the raising and to joint Toyota Additionally, facility, occupancy XX% X.X%. projected to are workforce with is the to jobs. the These rents ability significant over increase while market produce to a well-compensated growth factors

and in hitting average a all of higher basis rent City and revenue performed as per unit increase, to fourth Atlanta and stable of as Raleigh point We X.X% XXXX. continue typical to the to with Dallas and time X.X% see and with are Dallas growth revenue to of momentum In XX.X%, than occupancy well, occupancy. compared X the XXX X average Oklahoma Raleigh, quarter XX.X%, communities occupancy increased X.X% quarter renovate in renovated, a unit. a to takes an XX.X% Atlanta, over unit causing same-store is turn dip occupancy respectively. to the it being our longer portfolio XX% as had the of

challenging to markets. Turning more

in feel persist offset in issues to revenue in in resulting occupancy, supply us and well, and Charleston revenue. a X.X%. as a lower by in resulting from drop to experienced net our continue in Supply rents increase decline Austin decline of leading gains were pressure in decline rental We occupancy where in a X.X% in a

leased impacted our some corner the in disruption communities hit recently two project community currently XX% the Louisville, turned other from At achieving to value-add extensive $XXX in premiums was rent are experiencing premiums we X.X% of we rent the the per are $XXX XX% have Oxmoor, month. of lower Louisville. the per quarter. and month currently with Revenue our Jamestown impact At value-add of our We heaviest occupancy. community, significantly year-over-year. But

of we as spring and by enter drive season. are the recent encouraged We premiums communities are while well rental positioned occupancy these pushing the to leasing activities

on an Lastly, I update our capital want to program. provide recycling

dispositions addition mentioned, five as to in completed Scott of As the held sale. previously identified in communities our for our announced market, we Tampa two acquisition

third in our in two The XXX-unit held-for-sale for a quarter for that Rock Little $XX.X market a Jackson, and South located located additional located in mentioned first we Greenville, contract. Mississippi XXX-unit million under Carolina our community On a second, was communities community $XX.X call, were million.

with requested of to this of The are evaluate these We As We currently property the awarded this further in recession. occupancy are the request buyer we we Due Waukegan, volatility XX%. the the in was April. openly marketed, and saw consummate sale. concerns additional additional the recession declined anticipate working pending heightened investment. of December their all performing closing capital currently well know, are In volatility agreement and market and negotiating a for interim, the time time Illinois on the other opportunity month of fears, communities. their to communities and community above sale to final on significant

on guidance. half are part XXXX, the as economic rate purchased is turn the total The communities acquisition the consummation program. compared $XXX the capital have sale dispositions volume which million. represent to the price for properties price rate remaining completed sales in our four that Upon invest we targeting recycling for in a of of the XXXX a plan all We over total We our we of our as to the economic the of Jim. now recycling XXXX proceeds the X.XX% will held reflected for these X.XX% closing I'll sale plan. part identified still assets, of as cap first were cap of of to call dispositions

James Sebra

capital sheet, like our structure and everyone. I'd XXXX, a operating and good XXXX to review our morning, our earnings Today, by Farrell, for with and followed Starting review performance. balance with brief guidance. end Thanks, XXXX of performance

allocable December quarter, three the For for $XX.X fourth net $X.X months million income XX, XXXX. shares was ended the compared to million to common

produce Same-store core XXXX. consistent common Full EBITDA December while the XX, $X.XX shares to FFO expenses. in our same-store share expansion adjusted same-store to the saw in ability adjusted million. from on our increase per of demonstrating Same-store decreased down in for $X.XX X.X%, year driving X.X% XX% which $XX.X NOI increased results lifting share year, We growth the income the fourth $XX.X $X.XX which For EBITDA quarter just year portfolio. year million our full was was the grew line full the year grew $X.XX increased year-over-year full ended bottom full million amidst expenses our up $XX.X basis allocable X.X% quarter, $XX.X with reinvestment XXXX to XXXX. year. for revenue NOI to in level growth consistent Fourth our managing property Fourth to quarter points focus full was per million share same-store X.X%. for XX% to Core per was quarter demonstrates growth continued in the FFO full up full operating year-over-year, compared margin, year NOI the to continued XX.X%. X.X%, fourth quarter, year to in our XX

to excluding coming at progress reducing make stock-based G&A our to gross G&A, continue with also compensation, our as assets. total historical We basis points run compared rate on of XX in

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

Mississippi. not XX% progress Carolina we fundamentals, have We such assets we approximately in Jackson, as gross and do XXXX, the Tampa, markets our did we exiting long-term Greenville, further in in like where While made where markets like Columbus, the South long-term like Ohio. fundamentals, invested and Florida increased

to XXXX track to mentioned, our EBITDA with ahead we communities $XX by completion leverage of expect we respect net would as two ended During of in pro had of XXXX. forma by range XXXX, we At That approximately credit Farrell we leverage, net year-end, With these Upon X.Xx. to used to our net our on for we sale. debt-to-adjusted of three acquire dispositions. drop million. held achieve the goal line dispositions, of mid-Xs a a remain of the ratio said, debt-to-EBITDA end long-term assets

will our organic the growth rent our X.Xx we from deleveraging progress our upon on We at program to be would to property XXXX. further EBITDA XXXX NOI ratio year-end and begin expect see increases. we the guidance that the provided, as value-add net debt-to-adjusted Based in

our we million interest third call, with rate $XXX completed a the to based leverage. five plus on As the our equal LIBOR announced on loan quarter term unsecured year spread

to rate by interest initial closing, drew outstanding we revolving year of during liquidity The maturities on available, $XX capital the on using We million the flexibility credit. effectively we drew million $XX and January million XXXX. final million $XXX million our were those floating the borrowings the freeing term $XXX reminder, line undrawn collar used borrowings proceeds At reduce line a rate credit, in extending in interest entire unsecured for loan this five rate of our an up our on providing efforts. using and XXXX to term. $XXX As of to proceeds leaving repay fixed recycling

unencumbered our of continue portfolio composition we total percentage to Additionally, of by the improve our increasing assets.

while represented basis as portfolio. December the XX point increase, XXX to a percentage of XX, This portfolio XX% our of assets sequential unencumbered of and assets total our improved our a of unencumbered NOI, XX% As represents respectively. basis point

the our shares program under our on During used stock million. under share an generating proceeds net were proceeds $XX.XX, program to XXXX, price our credit. $XX.X of average we our of ATM These expenditures approximately X.X and line million capital of fund opportunistically of issued common indebtedness value-add per reduce at

for For $X.X or the CapEx unit. recurring per was fourth million total portfolio the quarter, $XXX

was $XXX recurring For $X.X portfolio million per year, full the CapEx total the for unit. or

Looking ahead to XXXX.

core guidance a to FFO range share. $X.XX for of Our per is $X.XX

growth operating at expect revenue between between This reflects same-store and expected our communities between grow X.X%. X% and well. and growth X.X% We X% NOI expense X% as to and X%

to real portfolio. with XX% operating tax pressure Our increase in our in estate a expectation between projected expected growth XXXX will expense is expenses our that to in result of same-store levels continue an our X%

half of estate over real associated this that in are for increase portfolio taxes is the Just communities first in with XXXX. entering our same-store time

difficult much it's imagine, predict when can if by taxes you and at all. As estate to real how increase, will

two the assets properties Our guidance guidance range; our for increases our plus our acquired end our first, newly purchase increases guidance of price inflationary possibilities: same-store top inflationary at reassessments of tax second, at low at end reflects the range. new to and

one increases. work As we tax continue I'll real with acquiring underwrite do, tax significant offer estate though. We or increase when always to expecting tax assets. appeal tax to of point a will consultants we always assessors clarity

these while and cap quote. underwritten an is our rates portfolio. our result, a estate returns NOI are clearly real the expecting From we the in we increases value-add benefiting increases, large are tax respective property perspective, As program individual tax

or occupancy XXXX, XX%. to our XXXX occupancy be forecasting at XX%. a opportunities same-store growth This are be X.X% to from be portfolio. other coming increases done, is that For income X.X% same-store said to and at revenue into our midpoint. within portion is be X.X% estimating value-add non-value-add in are properties, in increases the rate most Altogether, of XXXX rental After forecasting coming the range we we XX% from a to our small communities occupancy flat of from at to growth NOI our with are we and means all in

as will refresh we continue our to our and capital we Lastly, recycling portfolio. XXXX into activity further look transform

as disposition volume are well an as year. million million acquisition the of XXXX We a $XXX full million in projecting $XX for between million to $XXX of year and volume $XXX the

the our low the additional guidance Farrell potential including activity end the As recycling activities. high acquisition with capital mentioned, capital and XXXX our recycling of includes of end XXXX disposition completion

coverage topic Lastly, our to dividend I'd address XXXX. in like the of

call, in our for to our push with mentioned XXXX. quarterly a As QX of leading could that, Scott into we've taxes, over initiatives the With XXXX. Scott. in increase a potential These our turn on along some estate call value-add delays delays, into our back experienced dividend coverage large half back real the I'll

Scott Schaeffer

table our for in focused line foundation track At operator, targets. on our year objectives achieve remain on open like momentum this This has XXXX. guidance significant time, execution The to the I'd Thank the set we've past We're to to long-term has as you, built near-term financial platform. acceleration for brought we questions. and Jim. you

Operator

Drew Instructions]. question with of line our Baird. the from comes [Operator first And Babin

Andrew Babin

disposition wanted of Are the to question rate a coming for the ask the on of to I underlie assumptions year. just to give assumptions guidance cap sort on quick and general acquisition those year? you this willing kind for

Farrell Ender

the on X.XX% And Well, the have three in we've X.XX% range, we've cap. to recycle highlighted past. and remaining done in to we dispositions, looking the between X.X% the trying into match the that to as be markets basically a a we're will X.X% that

Andrew Babin

the last, not that Has in volatility as opportunities pricing before? like Has obviously of pretty perceived look typically for it, have has acquire, economic tight. anything properties market? some you Sun really that created related I Belt, question, adds XX a the the assets over be to changed And in days Okay. it guess, been might call the value maybe some there been

Farrell Ender

renovated the once in we we've the the it's low two finish we're capital and out buy were that and there, through seen, cap Drew. leveraging deals But relationships add. get X% We to all competitive to in the X.X% on we have value range stabilized recycling. the Not the basis Tampa X.XX%, able

Andrew Babin

one I while willing rate the follow-on there bit new was tenant. was peak And you Okay. little downtime season, more eat you creating out, of a just tenants turnover, question. to find increases expected over getting before guess, some and like seemed not so it increase disruptions, a leasing where little the maybe renovations, occupancy a more It the on moving a

some where mentioned you expect similar you'd was and it know overall. that guess, occupancy choppiness And will choppiness? -- maybe So as roughly sequentially? I expect you be expect I in XXXX the But it would we would

Scott Schaeffer

going learned from are Drew. through not I'm communities, being the choppiness, we And factored And there's that of the that renovated. lower as communities part process XXXX. XXXX, be that guidance we've to the we've in went renovation occupancy at in sure for our

I'm So comfortable. very

XX% all occupancy year. talking think XX% same-store for that's XX% consistent again pool guidance. I being comfortable very on with properties the aren't we're it whole as And and properties well renovated about were with as the that's are. And with where being that as we a we're that the at why the last

I didn't in that this issue think year, forecast And we So as are. or occupancy that low lower last we renovation communities. the was occupancy the year

Operator

comes question line the Nick next of our And Citi. Joseph with

Nicholas Joseph

Where fell the are of you with that contract? assets on out marketing process the disposition

Farrell Ender

We the pool basically deal best gone to are the with backup have trying buyers. buyer and negotiate back to the

Nicholas Joseph

in timing the expected the the disposition what's guidance? So of assumed

Farrell Ender

would to the the be The [indiscernible] frame closed last get mid-April. same one time these goal on as

Nicholas Joseph

of the due or down and to the delays? construction development delays program, X X from slowing are program Then Phase for the more

Scott Schaeffer

less to those rents where vacating. pay to on We the down tenants so we impact push renovating are are those units want have unwilling pushing occupancy, and program. the Slowing and the only program are and down slowing rents the

Operator

Austin question with of And comes Wurschmidt our next KeyBanc. line the from

Austin Wurschmidt

targets bit I properties. renovated it's detail for XX% to on about year. hope XX%, on you the the the the provided that you as think little below would But to a occupancy XX% target Appreciate the the

that mid-XXs where So range a the get up just looking challenged you there? back into properties to bit. changes curious XX% what And be X low then the looked to still occupancy low the of X from to were

range. And up so and drive to that try the curious low you're XX% doing to what back

Scott Schaeffer

talk about question. second to -- the question. or going I'm the to take going first answer I'm let Thanks. Farrell

is far be it's it the previously more Obviously, we occupancy lower we number. are that the still the make at in we prior XX% going the everything driving high being And that look an as going year just we're the as to. a be little to that available impact. we we're So for forecasting are sure want But the really do forecasting are to keep And as rent occupancy investing. can and other had recognize more guidance. because we to we dollars goes, there while occupancy to realistic a to we're premiums conservative conservative that XX%, with than

Farrell Ender

mentioned, you're is them you is are too low part the the I traffic value-add had where of the that to mid-XXs. of to leasing Jamestown at in occupancy good XX% And mid-XXs. in in four XX%. seeing the started inventory inventories. of And winter just And where months, I that momentum. much we And with not the as seeing I think can we're all we've properties of really fill tell the

I in a into shape pretty heading think good spring. we're

Austin Wurschmidt

that macro forward That's helpful. have what just to to X pause And Phase see of the the you discuss? would moving of renovations with started front kind and on to curious, you give you then

Scott Schaeffer

for are what the younger properties they we I good to achieve continuing capital all markets identified population market, that renovated investing further rental job are and well below in demand to we're now, acquisitions X, Phase think rents assets have are will growth where the demand. we're we where -- it's for in newer, we've achieving. markets see for still and the look renovations identified for or with And Well, for the any X and the properties for Phase right that about given

pause. as are would and long in see on those market, with good, Phase And dynamics we point changing we if that So going a as demand. we'll then have to move continues, put that any we're X. competitive a for it forward price And reason

Austin Wurschmidt

but just assume additional may any for then the you FFO and I for guidance 'XX? this, have in ATM one issuance missed more And did me,

James Sebra

No, we did not.

Operator

Brian William Blair. Instructions]. our question [Operator the with of from And line next comes Hogan

Brian Hogan

How on marketed A sourcing where transactions? is Or competitive question are deal with those you're it? then acquisitions. is And quick the it the you your competitive sourcing and landscape relationships?

Farrell Ender

Farrell. mean, past year. of the lot is our I It's a money competitive. moving over This there's into space

we I've we said -- have both the think reputation in allows past, marketed deals, in that the deals leverage purchase as that through them. we at market, a in group They're off-market win We this have us look good too. we bought some we that I know. to brokers but a our to market And been of deals. harder by able to really come have we

Scott Schaeffer

expect And think continue. make We we will really both be the opportunities that to acquisitions just I existing say some also that, through relationships. it's in off-market marketed encompassed for by but fair that to transactions XXXX fully

Brian Hogan

Or sell kind then And the the that -- looking held ones, you ones to can Southeast outside you the color? -- you will right. be are But for dispositions, any which in other us with All have of region? obviously ones what are sale. give that the

Scott Schaeffer

intention that the we that sell change capital the XXXX of them, redeployment be early Little full we identified the Rock. we would was dilutive. dispositions sell But two would point, be of accretive second this we ones assets. doing, said, in again, only have is of the haven't the expect to assets dilutive, guidance, what quarter. for way but sale might were And redeployment Farrell in as as -- than them for -- actually further. we're at Rock and mentioned sale Little we we If you haven't found would delay to to those be determined identified still The not range we Well, held other giving a any in if but Farrell earlier, But that that sell might the we XXXX.

Brian Hogan

All right.

cap give can the theoretically gave were when value-add initiatives you of those, us it whatever selling on rates. actually roughly and range cap do your thought put is selling when your there? X% is? But what buying you're process what what or instead you Or same buy of -- said You -- you you rate at is X.XX% you some

Scott Schaeffer

start. and I'll but just let me me Well, let -- jump in, Farrell let

So just don't rates. selling the that and we're fundamentals. thing I profile portfolio cap But first have exiting markets are similar we clear believe that, by the at is to buying same that we improving want our yes, long-term make

markets and better markets acquiring growth yields long-term slower exiting much for have same initial we a the that in will think we're potential. So

Farrell, you So answer this can second part.

Farrell Ender

we bought so Yes. add. the two in once on the a I the mid- will in in we similar Atlanta to we it they mean, be properties cap the renovated going-in in and that implement low far, But properties underwritten sense And the expect, rate only value as profile specifically have low two is the stabilize, renovations Xs. Xs.

Brian Hogan

people people turnover there. All Just base? I rental for right. or frequently And staying mean, curious within in then it more changes is last leaving one me seen is you your have longer?

Farrell Ender

the I tenant we're no say turning better to a mean, doing, base of general, base we're the achieving. over renovation in I tenant we're rents In will what the change. properties, because

Scott Schaeffer

tenant credit Higher base.

Operator

Inc. next Merrill Boenning, with the our comes from question line Ross of And

Merrill Ross

little turn. already answered asked a I'm to turn takes answered. has you been question and that the going ask than differently. longer value-add Farrell, This -- mentioned the it typical

So you turn maybe just turn. how could give and a a typical insights some is on much longer long is us value-add how

Farrell Ender

unit to doing turn, typical a you're X X when just is our turnover, days. So

into XX- that or take on XX-year-old vintage things run into depending typically between wouldn't renovations Jamestown a property. you XX like XX, that's older, the XXXXs, run property. and property you A Our

Merrill Ross

Sure. order encouraging And just you are follow-on, to in vacancy a turn apartments?

Farrell Ender

getting a process No. managing we're the daily inventory basically that What on back. we've to basis learned from and past experiences, renewal the control we're trying our

our back try to we we'll have rates we to So increases if we try to renovated vacancy. stay. inventory, incentivize inventory, to have those much if off to too rental create renovated see see don't And renewal that people that push enough we'll we

So closely. more we're managing that process much

Operator

And our with John Thalmann. next Massocca question comes from the line Ladenburg of

John Massocca

potentially been this the in regards of these in deployment? start could with of X renovate initial Most Phase have half of terms a is quick terms, obviously my takes that potential XXXX in But answered. just to it of more that really value-add capital but one, questions Or to event XXXX? back a apartments, time already the program,

Scott Schaeffer

John. No, by the groundwork this going that It we further sure demand the understand staffing be the projects now ready -- with in market X. that are through the making with We're Phase that at XXXX. the would actually looking go back half process, could potentially end requirements, we markets get the in as through start of completely idea at to looking, in XXXX these that XXXX with being we of initial second the

Operator

Daniel And of comes question One. Capital our the Bernstein with next line

Daniel Bernstein

just assets -- add, the that immediately Phase are to I later value X part going off CapEx considered acquiring into that to are that, so that to starting be that's of redevelopment to put wanted that those ask, is pushed on time? that... you're the you a are Or

Farrell Ender

No, that those included are we've X the mentioned. Phase in

Daniel Bernstein

to versus And have is from to in the I wanted 'XX. $X.X $X then up what million million Okay. the million, other CapEx, to that understand question was number picking recurring $X in

James Sebra

is portfolio per that to Yes, typically for look kind we I be 'XX. unit 'XX mean, just it per for at CapEx And it's of than a year. larger in $XXX recurring

Daniel Bernstein

supply assets haven't had is you've Okay, given All are buy I to undermanaged? seeing right. value that's you been opportunities out it question any you amount as what last or well. add newer But -- that the there, know leased you're that's the of buying focused are the that's all up any And is. seeing and on I

Farrell Ender

there's our is looking our that. looked But sense, own situations see are the always But staff. we We leverage we we space been properties that Xs Class that we've make be Class that lease-up to opportunity that may focus of new the Phase at your where are to of at B able may question, an we has into looking portfolio. majority -- A Obviously, where already opportunity. yes, potential answer opportunities

Daniel Bernstein

Nothing up, but opportunity if the it. you'll imminent, take pops

Farrell Ender

Correct.

Operator

in Everyone, question-and-answer disconnect. concludes today's Ladies and today's today's may and program, you participating does all a conference. Thank session. gentlemen, have day. great conclude This this you for

Independence Realty Trust (IRT) 21 Feb 192018 Q4 Earnings call transcript