- Earnings call transcript Q3 2022

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Operator

Good morning. Thank you for attending today’s Independence Realty Trust Incorporated Q3 Earnings Conference Call. My name is Foram, and I’ll be your moderator for today’s call. All lines will remain muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]. pleasure Torres. the my our over now Lauren host, is to conference pass to It

Lauren Torres

and morning, quarter you review Thank good Independence us for Realty to joining Trust’s third XXXX results. everyone. financial Thank you

call call Ella Chief IRT; is Officer; and being the Chief President Chief Sebra, Farrell Neyland, with Scott Operating are On Schaeffer, today Financial Executive Jim Ender, Officer; of me Officer. Today’s Relations replay website our webcast telephonically today. on irtliving.com. of a the at be webcast Time call website approximately on our at will Investor and beginning Eastern XX via available There PM

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

Scott F. Schaeffer

Thank the residents who on-site call all Lauren our to third where and delivered damage growth year-over-year on our combined to our effects growth for strength store morning. and us our to significant the we attribute would thanking today integral to supply. concentration happy Ian any you markets and XX% not NOI and non-gateway this thank that safety And joining attractive, on demand same of played quarter we of this felt report I'm the in Hurricane a now communities teams Carolinas. basis. I did to to like Florida our by our any ensuring in the the in that an FFO continues experience you part results, properties. portfolio and core Sunbelt XX.X% begin outweigh region, per in share We of

rental double-digit rate of In the XX.X% growth quarter. average achieved in addition, we

generating the this a projects the rental the and point to revenue quarter, rate value-add growth in lease new of rates We that XXXX. for To rate maximize on pressure but rental locked continue start balance occupancy in put for strong third earning some with to revenue long-term. attractive eight occupancy, growth combined

of our communities. As XX.X% occupancy in today is non-value add our

for into in two capital and in of Indiana. Terre strategy sale recycling as agreements entered Over quarter one Haute, Louisville, and the our past one part communities, of we Kentucky

in job exciting IRT fundamentals. markets communities invest and And will strong growth which is these core and another as economic to allocate a part joint acquire migration. Texas selective capital community ventures We all in have joint and grow we acquired and Colinas, into venture Las the Dallas, it in our area our the patient for These believe part or entered important portfolio opportunities North Carolina the is of a recycling development footprint attractive the in population community We Tampa, as of experiencing be markets. expanding strategy. of Charlotte, capital in also are company in favorable environment Fort to only in we and a is that metropolitan Florida new current Worth

XXX with our making also on return renovated XX.X%. of year We and value-add having this program progress units are investment achieving a

remain units we of next from renovations the state the year. the our and the expect on expect at add until have merger communities markets XXXX and of in moderate to we in XXXX increased start program XXXX Currently our new we delaying had about clarity are better complete between we value STAR, While our economy. units we excited by with plan value to add

While acknowledging drive to confident to enable outsized we remain at current IRT continue our that and returns. portfolio uncertainty, will us strategy macroeconomic in

first, Our fundamentals is about multifamily we real encouraged the confidence position our underlying strong and are sector. by estate remain in the following;

to points see an portfolio and outperform to growth. of expect migration Sunbelt all market And during have we cycles. that footprint Second, significant across optimal we markets, key job continue

drive of has for been which as XX%, portfolio XXXX our leasing NOI each you finally, progress growth year-to-date, full share performance our And growth as has at raised long-term sheet of strategy, previously has our ranges. will capital by current we all our for of STAR while our achieving same in that further the and business. we on with the FFO see robust reiterating to we successfully activity said, initiatives can core value-add scale added renovations operating our continue our position combining execute platform. IRT’s signal top midpoint enhanced a the value ultimately the strength of With combined this balance well accretive done and we recycling all history, which Fourth, true that per merger, been are XX.XX% environment. of move with our of this most in operating all through as Third, markets guidance guided bolstered store forward strength

it forward over update. per we and XXXX share expect year important Looking continued more note next detailed and a for the is be turn I'd NOI our to year-end growth call. an for now a provide And to core like year to of FFO operational during that to outlook Ella the call earnings

Ella Neyland

delivered our Thank to We led solid quarter in rent third growth you, ability Scott. drive our markets. a by

QX of specifically, saw markets delivered rate which in Myrtle where the store, goals. QX lease-over-lease put with vacant occupancy QX, some increased effective As year properties where year. in Scott rent even the Tampa the in of pressure stronger this highest new rate today. rental as of and renovations a XX.X% More uncertainty. we QX occupancy our our efforts eight to is rent economic strategic than addition XX.X% add our goal mentioned, growth our the communities as and XX%, XX% These which average Dallas growth were at To X% balance growth put XX% and the markets perspective, occupancy but higher with still fill quarter. we at we lowest increases Beach head to considering at Atlanta XX%, Houston non-value to with upfront it rent rent in growth in were units value-add a decision was levels, of along averaging our our concessions rate and the increased quarter. at started they the offered XX%. response, in into our the to on some rental These Chicago, XX%, In the in Birmingham, This rental lock same increase end at

This rate were a to leases lease-over-lease rental and up portfolio X% the in while with for in date, blended X.X%. at of rental Looking rent fourth increase combined fourth in XX.X% rate growth of the leases the growth store trends in of quarter XXXX quarter QX same is for of delivered year. renewed X.X%, guidance on increased lease-over-lease our have new last our line is top

loss at to as XXXX. favorable XX% XXth, continued us pricing was power of lease in September Our giving

with average continue retention QX a the retention rate resident see of We good XX%. to portfolio throughout

who While rate at their renewal coming rate XX%, our to residents as over approximately XX% a from rent approximately our is we months expect it's move early it is home a and QX of decisions. stands out is The declining QX. this moving are XX% at or still make down residents and resident XXXX, retention in to rise buy out which bit for the QX

For continue good our statistics. the residents communities into and who are to demographic demand we moving see

approximately had an have days income our of with into XX average other states. last markets XX% the from migrating $XX,XXX over residents New

markets. our in fundamentals see growth demand update you Farrell well-positioned the now with to renter markets. I we believe solid Coast, and would lease, continue into Illinois provide the East, the Northern to over are North loss call West from to that Scott's in, continued for comment our to with echo XXXX on and earn our like we migration We investment opportunities. to I an turn in

Farrell M. Ender

I'd Ella. like long-standing renovations we XXX on units. on the an program. add value first update completed to Thanks our provide third quarter, In

This on renovations units XXX unrenovated per yields rents return achieved a a of comparable units unlevered investment renovation per these For $XXX on units. over completed on an achieved return these our and XX.X%. monthly completed investment we've XX.X%. $XX,XXX was costs Year-to-date of average unit unit in and increase

to will value consistent XXXX units, and add down of XXXX quarter guided return These expect change projects. units. approximately value XX our including previously prior XXXX For be primarily communities. to properties in the properties program. fourth and XXXX due in we add retention at achieve throughout XXXX on are investment an now This of our on a Beginning expect value add significantly rate additional XX higher properties unrenovated year full is we comprised these units to renovate to from target our our with units a we

for to have markets some expect made mostly As the and XXXX, communities We we located new the units. in renovate we XXXX do established decision yet at Scott renovation not now ground. renovations XXXX where mentioned between to on earlier teams delay

but a question is starting So, these question when. of a of rather if not

is on and exiting in our growth properties strong attractive opportunities. onto with program capital recycling with which our Now presence focused building fundamentals, less markets

price quarter we an of the sale held sales one with the X.X%. two of an rate sale Kentucky properties, and the As million, expected approximately Louisville to Louisville, Haute, other closing of the had in These end for of blended generate yesterday. Terre expected XXX property classified aggregate are Indiana one cap dispositions as in

of rate community $XX into by in Texas. August expand with a recently a acquired XXX-unit a North the More property Regarding Combine development positioned lastly And This acquisitions, in were purchased Colinas, properties XXX-unit our for in cap community XXXX over space, presence economic long-term program community XX in add Dallas, these as located of acquiring for feet of candidate we XXX-unit companies. Tampa well built Charlotte, constructed an top multifamily growth. multifamily massive we value X.X%. is in be $XX at we to Carolina office residential XXX community a for in stabilized for and our was a in specifically September, the as retail community blended million. ideal home million. for In multifamily a a joint to market is venture and entered million space, Las Fortune square XX planned built consistent

funded into We million completed with a have project third have $XX.X six billion invest $X.X and billion $XXX date. committed million quarter joint of we to projects funded which venture committed this different last Currently month. this $XX.X to of was an expect XXXX the in to be aggregate to

We communities late opportunity XXXX. complete late these stabilize purchase and expect between XXXX the and as they construction to

XXXX. turning deliveries our A, exposure sub has to new deliveries in projected on for unit STAR our based call deliveries over not Currently well in our vast on existing to new new sub in compete I'd Jim, majority do The at infield [ph] located, like X.X% dropping directly communities. brief Class Before some a of information provide weighted for B which expectations X.X% of Class XXXX. these inventory, the with our markets markets average are to

communities. average per newly Asking our at higher $XXX built communities priced month on rent are than

supply not do growing but the consider evaluate we growth for demand. also we our solely in Additionally, markets,

Co-STAR years X.X% like XXXX several to past demand the Currently have by to to Jim. another turn our the I'd XXXX. for demand XXXX. over expect grow experienced X.X% continue in that [ph] XXXX trend is markets Over by expected apartments now in apartments and our submarkets robust call in for to and into and

Jim Sebra

our to with available XXXX. Thanks net Farrell performance and shareholders XXXX to good Beginning quarter everyone. update, common morning, was third $XX.X in million $XX.X the as quarter million third income of compared

merger ago $XX.X XXXX. million core grew to and a as we've up the core XX% share accretion grew million QX XXXX up well the organic with year is two sizable this as $X.XX with our $X.XX a During share FFO result from in the This the growth experienced from We third per growth to and started $XX.X associated earnings key portfolio throughout goals. FFO of year. NOI quarter with per share rent STAR, per combined

First, the core goals we've operations related we FFO integrate you was and remind growth increase delivering the accomplished by IRT’s share rates. of rental growth sought growth both XX.X%. in third and XX.X% they're per our store fully to revenue accretion. STAR This of average We're same secure of that was to and growth driven synergies these identified second, combined XX% year-over-year. by a quarter driven NOI XX.X% excited

XX.X% our did communities, value-add fundamental of strength store includes see our same While core the similar at reinforces which this NOI growth markets. of growth NOI communities, non-value-add we

property On expense maintenance X.X% led grew well same as store costs, third per mentioned the side, the mainly unit higher The won utility taxes and on well projects pressure appeals causing terms. in as our than last quarter, and and both higher as in estate combined repairs quarter by be of on The taxes primarily us year now X by operating and initiatives million inflationary and as maintenance increase will was year we of expense expenses save estate year operating supplies last is some as continually real the and timing insurance. and services future repairs property We focus in by inflationary to real normal. centralized out expenses increase rolling are in costs. driven some are managing approximately lower last in that excited a payroll pressure about the QX we driven

the Now shares in sold of on per the that September, approximately and was turning under into the XXth at as available forward forward had of our cash ATM million average price to At were on $XXX sales million. weighted line and X be our settled position end received shares share low million and year our net $XX proceeds EBITDA We times net full $XX of basis we million. this million of September liquidity were program. $XX of from increase X.X the The The a IRT our and mid settled previously of indebtedness unrestricted for our to year balance X.X $XXX credit. sale of proceeds to target end Xs $XX end [ph] Xs to and by year-end At XXXX. used by our two outstanding a continue debt from down repay ago quarter million. our held the of upcoming times will assets sale will liquidity approximately was by we sheet,

strength important dynamic think capital a term, about you portfolio the the As macro environment through is it managing in near to stress of the our structure.

with enhanced position, hedged in XXXX in of and XX% our financial beyond. that July are our addition debt a our maturities completed fixed In with and to liquidity strong debt flexibility XX% of was and refinancing our

guidance maintaining midpoint. growth NOI combining we same at the of Regarding XX.XX% full are year XXXX from our our outlook, store

are $X.XX We a by a per share growth core guidance the FFO half midpoint. and to raising half a penny as our penny

for our While the our to better performance reflects operating revenue XX.X% lowering to the this at midpoint, greater we're midpoint. for lowering expenses both property and X.X% guidance slightly the from we our of on of also X.X% projections This year. are clarity expense growth growth also today remainder

growth rent will ahead payroll, Looking but a given services. see impact and XXXX earning our expenses and repairs revenue contribute strong growth moderating, X% expect to we We that XXXX inflationary with to growth. XXXX, to various rent in maintenance, pressure contract lease-over-lease including

further within of implementation include the efficiencies will our realization focus automation business. and of operating Our

guidance provide We core share. we in will note and year growth for to February, XXXX year full that of but be another XXXX FFO expect to NOI per both

Now, I'll Scott. back Scott? to turn the call

Scott F. Schaeffer

Jim. Thanks

proud integrated like confidence team with the our has over of the portfolio year we which past As merger last our of our as for we delivering and to quarter. our expectation reiterate business, under a in have FFO year a core we XX% STAR, growth initial our in successfully synergies. market executed annual strategy say and enter calendar year-over-year seamlessly exceeded on most months share while conditions per I'd we that and volatile continue our anniversary STAR I'm in expanded as two to have undoubtedly strengthened the our basis the recent to invest

in Going on continued forward, our capital we investments reduction will capital our remain and and disciplined focused add value allocation recycling selective which will efforts, programs. be in debt

high-growth we shareholders. when dividend put share are in incredibly forward capital Francisco into due We to shareholder open today the program. We positioned quarterly our IRT a to returning payout at our dedicated is for us of space thank like was year, Operator well multifamily to value would joining now driving month. San repurchase call team, REITWorld you you this This also questions. and next place our the across resilient the succeed increased strength XXX communities for our to earlier look proven in we to Conference markets. and and committed seeing to

Operator

Thank you. Instructions]. [Operator Absolutely.

first line now Our comes with question Brad RBC line Brad from is Markets. the your open. Capital of Heffern

Brad Heffern

demand consider concessions, everyone. well? currently, And on Can sort walk Thanks, then to a we level? what looks of good are as seasonal be the through that normal those at normal are a you would seasonal morning how you level

Scott F. Schaeffer

mentioned I on and market smaller supply we're your different in level Beach the side, little ahead call, is Myrtle than more should growth markets, mean I every matching seeing and bit X% be in supply the getting and Atlanta Obviously and On Dallas high may X% seeing overall. our demand our a markets seeing up significant a to we're able with supply. side. to larger Wilmington, what demand meet supply of that the they're the with like as some population bit from a Huntsville is But Denver little your be

Jim Sebra

I offered curve just given was offered that and would -- kind business. and do we think see early Jim, in respect for if at and chime say right demand to Brad, look do lower QX has good is think concessions normal expiration in it The to of Yeah, will track a I this We the units offering still obviously we're we But pre-COVID I I I certainly were level think I returned the concessions think leasing period. there, September every I with of our QX. currently. all of part that not stocks in October, certainly were seasonality

Brad Heffern

it, just you improvement out thanks. you comps any may gave largely And a sticking expect implies then figure. And -- give got little but that so from there fourth it Okay, low be I to be affected year, can us by you, Jim of commentary comps? number lower a that the on quarter the sort OPEX year? XXXX then this direction year, than than higher prior would you should know is you backs mentioned with is that was quarter pretty the third guide the this

Jim Sebra

estate results assessments guidance with relatively that want high kind try real pretty intelligence and estate change good from around some to for we getting result, Yeah, are year, the a some taxes. new and XXXX big tax answer given good is to modified pushed for change. assessor's. not the assessments, tax question. relatively I feedback I real is question, some of as big the received think And the back We XXXX but aggressively a those we've good

and pressures year. are for the of as we year. utilities, terms categories, in say line these we're out next that maintenance, about digit all for where on efficiencies would rolling kind help year. of these excited further mentioned, this continuing I the check inflationary in kind some us the even those centralization of I pressures of of ultimately we But, services some next of that's with those kind in Probably But will keep key in growth certainly etc. repairs mid-single In inflationary XXXX, see

Brad Heffern

you. Okay, thank

Operator

question. your for you Thank

open. next Our your line Wurschmidt KeyBanc of comes from Austin, question with is Austin the now Markets. line Capital

Austin Wurschmidt

on everybody. good wanted concessions. or the I Hey, detail those up? any Brad’s quick just just specific add follow-up value additional offer one question any Where within concentrated morning markets, to you pool, could

Scott F. Schaeffer

and let upfront back we weren't have in concentrated been, higher where to they the start get burned jumpstart really They were have that vacancy to those were which they off. me where concessions in over. it -- yes, accomplished. important historically No, saw concessions have we order and has occupancy it largely ended well, thing And properties is and now

it the point this from rent months. for forward, a collection next full So, XX is

Austin Wurschmidt

that current XXXX the the uncertainty of dial X,XXX right you Scott, back and XXXX, of envision drove the redevelopment the appreciate units XXXX you And units then for to just begins the is it, if to kind detail. or of the goals pace of economic decision size the for highlighted the to to Got but lift? portfolio, that when fog of ramping do uncertainty sort renovation

Scott F. Schaeffer

XX we mean, I And XXXX that it. downward on do has every that occupancy a think we the you the uncertainty unit, behind once I the headline for it's clearly within look Austin mean, value-add vacant the pressure on we a every when you downward goes days. anticipate felt clearly puts about just is unit pressure all XX risk. received is questions obviously us. to to at turns the and ramping And that, occupancy. start community, on the a a turns, -- that puts I process pressure, value-add it, if occupancy

that and value largely it did to markets where were decided going was that little in the all were we of we beginning we process to the didn't any current a bit So environment work historical eliminated going on. back have experience and dial we we

you out to to have remember, teams those not build we with to again, largely in and teams So uncertainty do value-add go fog in out We because go didn't house, markets all mentioned. and that the it way do have that house. that build we of did in

Austin Wurschmidt

occupancy do level mid moves the as overall about the of that that of what sort occupancy talked XX% we So stabilized range, think how look is for value-add the you've of around, size you think manage right I historically to and in of pool occupancy the about portfolio?

Scott F. Schaeffer

look if at, Well, at I portfolio XX.X% today. at you we're the you value if the excluding think add, look

are We [ph]. XX.X% it -- was Jim,

Jim Sebra

Average length in the quarter.

Scott F. Schaeffer

the it's points a XXX add I about the XX. value basis it's at But about as So portfolio if then on think you whole. look

basis a about value-add to XXX it's of XXX point in process. because reduction So occupancy the

Austin Wurschmidt

Right, reference right, okay. And me, you the them the guess then redevelopment, just to I Returns you've down for a consistent last on did projects. prior returns one value-add come be from elevated expect levels achieved. with bit this quarter you've

can given what re-accelerate dialed returns So XX% returns plus have us the those remind this we sort point? achieving you been targeted potentially could were of and one, at where back concessions I are for think you redevelopment see to previously

Scott F. Schaeffer

some as growth high on historically, reason the because the did didn't as exceeded including I have I as real last We was on range. our think obviously the -- not reason the and costs. has And the pointed got over rent we inflationary XX% experience it XX% it out that believe yet by months we a target portfolio, saw that across the expenses that been tremendous significant normalize pressure and amount. it XX -- in the the you of we So or that had value-add will

unlevered. rent and we stay of to XX% growth bit So, more now some the is it fully again, range. we a expect But little it's in And moderating. cost have that

attractive. very still it's So

Austin Wurschmidt

understood. Scott. Thanks No,

Scott F. Schaeffer

question. Thank your Operator for you. you Thank

with open. line Our Nick the now Nick, next line is of Joseph your from Citi. question comes

Unidentified Analyst

Nick thanks, ones quick Joseph now and good It's morning. two Nick guys, [ph] Hey actually Quran for for me. so right

bit First, you on little of earn X% touched a in.

well? wanted lease to know to Just looks what as current like, the loss

Jim Sebra

Yeah, is current portfolio in loss the lease XX%. to

Unidentified Analyst

wondering do or of guys along sort can if occupancy come in so on lower then there's say a how And on you if those the something than back easily like lines? returns, great. just you disruption Okay, those renovation, expected, pull that

Jim Sebra

Pretty managed. it's easily, definitely I mean it's heavily

or drop. did back were increased we So and costs premiums COVID, do during able significantly we the we to see same significantly if we would as pretty pull

Unidentified Analyst

Great, And are just is, today? sort on those in quick cap thanks. last market what where on one you then and the one seeing dispositions of are rates

Jim Sebra

quarter There debt run-up there don't say, been substantially seeing less bit little rates what lot in are There their trickier points. quarters. is X%. people in not now with would we have the cap I Yeah, obviously transactions, the really a X% past are. are in tenure, costs and the third than know of between It's but as a data

to our capital we So [ph]. and a at blended blended [ph] XXX we'll recycling sold have see a but, we're XXX at -- buying

Unidentified Analyst

thanks helpful, Super guys.

Jim Sebra

Thank you.

Operator

Thank question. you for your

from Our line Capital your the of open. now One. Malkin Neil next with question comes is Neil, line

Neil Malkin

everyone. morning Good you. Thank

in-migration. guess, on particularly First the one demand side, I the

anecdotally a it of just be data or that very can return from impressive You mentioned might you continues or people migration as rate? that's rhetoric about the there continue reinstitute whole, something in migration to reversion companies in on see happen. reversion some you're you in ground if that to a office. potentially of a migration is I at or been to talk in, kind of strong bit some or if in about I seeing of But do guess conversation maybe flows which great. as There's ahead that not and think going to chug kind little

Scott F. Schaeffer

those teams markets, your about in there's is mean, the Atlanta. pretty if Florida looking consistent at everything the showing markets. I'll let we're and growth job are anecdotally continue that be from ground. to Carolina the going data anything Dallas, population looking markets, Ella hearing she's I a slowdown don't in on we just looking at, talk we about that our see But at the

Ella Neyland

follow there, to reasons people the markets lot being income pre-COVID of moving for that already our was our that saw tended state to businesses created, a there were all on it. And no have migration friendly, business also Jobs be a positive states tax. in to were they

of those and probably to still there moving and life taught continue into COVID-XX of other was people continue see and to opportunity. That good quality will markets basically during job a find to in acceleration moved as So we and to find worked, from home. and from still we played, a exercised people also markets see an but that moderate, will

Neil Malkin

asking those there's the you new things; Yeah, December, so are you is close one what and totally alleviated? uptick occupancy getting we thanks. gone, leasing sending up on of first, you in Other on short-term back got exposure, slight actually are and now second trend, out see two pressures could part fourth agree, And with that kind renewals or quarter to leases the January? concessions less for is, November, a what for out sort of are

Scott F. Schaeffer

Yeah Neil, good question.

growth back to what and that, but effective I for quarter. think, a the overall similar in now trends margin what disclosed on terms that new we're slightly already be we're might level. There mid-XX leases of seeing kind quarter. terms that in kind in of kind it'll rent sending as changing lease-over-lease is renewals the something be generally of previously occupancy for rent speaking fourth out of the we've kind probably ultimate the uptick of see growth We'll for of

Neil Malkin

a thanks Okay, lot.

Operator

Thank you for your question.

question next from now line John the of open. Markets. with Capital is Our comes Kim your John, BMO line

John Kim

points [indiscernible]? at and difference comment discrepancy When basis you more your portfolio? overall Can between add prior you. quarter in the occupancy on Thank value like you XX look

Jim Sebra

value see said Yeah, we range, kind in mean, of I have kind manage of normally to impact the management occupancy, of I what does to XX% occupancy think look mid it. from Scott a add initial

that at typically think portfolio response about XX% question kind So, but… on Austin's to of averaging add occupancy range, value how earlier, the in is we

Scott F. Schaeffer

start years the every that, that vacant since a value-add program couple those at So at little we that for when turns last of factor at unit unit becomes every value-add turn and bit I community you the is was vacant new beyond or process being better projects a started work eight a were the to think or the important communities in was a of number as done ago year, communities of most years. month where part of a for the it's

that the turning sense. were at lot process there a and we and value makes being already of less So, less vacant Hope done units because had for them.

John Kim

units does. if to the turn was it [Multiple taking supply yeah to chain it Okay, was issues, issues? wondering longer over Speakers] related I

Scott F. Schaeffer

now. volume the in are We

John Kim

year maybe next the to about I rents retention, renters due to to was year wondering higher you than higher Will reducing reluctant for pay if also was it today significant ago? a program talk but renovation

Scott F. Schaeffer

any from We're not pushback seeing renters.

Farrell M. Ender

at we're delivering Especially apartment that cause an looks value-add essence delivering priced a quality on home. but A in a We're an the B. like

them. lot a demand of there's for So

John Kim

the you acquisitions discussed was? rates think close on set comment how deep today I rates Can where process the then on or both you up just the August/September. and had cap or assets Since Okay, competitive you XX bidding would on more. those be pricing basis points moved

Scott F. Schaeffer

that still assets Yeah, buyers, there's pool definitely treasury. I mean, would I rates high I of many. markets and mean, are as cap so there for not good say quality the trail

XX I to been weeks or rates. would the as two be haven't there back It's down real So points past cap any some in data There it challenging just imagine years now off. would increase run X. that that in closings has the pretty dropped

be. debt are again, costs seeing -- know market going what in to just their we're what So it's this don't buyers is

to know are challenging what you don't returns your it's commit So be. overall price to going any to when

that's be didn't still year, There people a limiting opportunities taken. buyers. of the some half of in to out are that you profit buy there's if But So lot amount last still the there. what's of there's second

we So settle where in runner-up rates market. the people treasuries. unclear in the the are see quarter going just with right do now It's cap out to testing this

John Kim

just Orange involved are I'm a wondering question, Control and have. how final other fight in Ordinance going weeks and there's commentary we of one proposal Rent vote, be you the Just The against November any to in County. could it. is on the the the couple ballot on

we court But fortunately if forward that law landlords it's fight approved the sits to also existing to one that did ruled allow it is judge A basically there law it's existing told contrary to opportunity landlords that in to who have ruled County. it State. you'll contrary of because only your the that and it in challenge to that initiative in and group ballot and go on asset got have ballot. together So, the

So to it remains seen. be

I failed this and is initiative initiative. look ballot think a can throughout really you it at time

So, only fortunately have closely. be again watching we're it'll And if fought. it one just so passes it we asset

John Kim

it. appreciate Thank you. I

Operator

your for Thank you question.

is Barclays. your the question of next Anthony, Anthony now with Powell Our line open. from line comes

Anthony Powell

morning. good Hi,

the the quartile that that you income I average top considering and the which like metric think you in where in can where income, for think new seems $XX,XXX past leases mentioned the is been has go so future? that

Jim Sebra

statistic That ago XXXX good generally before the year I been just residents was $XX,XXX was slightly. new for the That of number days. communities maybe leases, into moved was Historically, that for the part statistic early rising question. maybe a think is our new the last it Yeah, $XX,XXX. all and that have over the has XX

rising I have steadily it's So well. been wages been guess rising as as

Anthony Powell

And on Great, supply. more one maybe thanks.

broader challenge risk metrics I think kind are where where think actually markets the about and Are be of talked any the there you think a you is in supply also markets supply there you any metric, your supply markets. could the overstated? demand

Farrell M. Ender

your Beach's and seeing your we Myrtle having again, smaller Wilmington's, supply So markets, are Huntsville, your are that. our elevated

through we I mean I that. will short-lived. think think it's XXXX I be by

moving markets larger Some Houston. markets they Nashville amount but that of But and those the people are are concerns in have that again to should markets. elevated supply those absorb some

are Our which healthy. I X% growth guess larger supply really Dallas, Atlanta. Denver Atlanta, X% seeing only pretty and to markets is are

Anthony Powell

Okay, I you. That's have. thank all

Operator

for Thank your question. you

the open. from Jefferies. Linda next Our comes now line of Linda, line your Tsai with question is

Linda Tsai

into Hi, any next think What's increases taxes how this XXXX? should sense about of estate your appealed view headed but are good real I morning. year, know and volatile, of we

Jim Sebra

range tax was X%. of initial X%, reassessments the given now. likely. digits coming maybe movement kind tax are see market thinking could we some we're you the this in X%, next mid-single estate don’t will digit we assessors actually in is high the some There again, that's for year growth where But some I mean going that in indications from but in again, guidance think that February of I XXXX growth in the formal that is to that talk this give of right year, real single earlier kind year be that of the seeing negative next tax

Linda Tsai

in Got renovating what's of communities it. to place? terms a process XXXX getting in XXXX of team then XXXX, And renovation in you're the the

Farrell M. Ender

markets Well we in like are that the Atlanta, place. teams in have beauty. have these Tampa them that's I mean out we built place,

add a those properties teams growing were portfolio. slightly to added of just absorb additional it's to that matter So the value the

Linda Tsai

Got it, thanks.

Operator

comes you your your from Thank with line Mason, question Baird. The is Mason now Grow final for question. [ph] open.

Unidentified Analyst

to Hey, good you morning really by everyone. How Thanks optimize you capturing are to occupancy to for period, focus going looking rates a question. your seasonally taking more looking softer are on revenue during pushing push lease? loss forward, my

Scott F. Schaeffer

to the the looking that that still versus that's market the occupancy while and with pricing always available. and growth and sure competitive making rent growth is the system we units revenue balance team looking a We're rent the balance And we have place management two our pricing. just constantly in capturing at available in

that in occupancy. our we that's to to put and market we look in rents XX% add But earn rectify the is As were tail allow. very the the And capture again volatility order that capturing we we while a back now harder we quarter saw and fourth in the pushed as stabilized as occupancy build able much XX.X% a in we of quickly off and the the the that and could. will as much And to end into non-value quarter XX% goal, bit into to in little communities. to we're growth a we've indicated on stay of saw at kind range the third quarter, coming third of as XXXX to bit little pressure through as revenue

Unidentified Analyst

me. for Thank all you. That's

Scott F. Schaeffer

you. Thank

Operator

you your will This our for remarks. now pass for to back team and Thank closing Q&A question. our management concludes you. Thank session I

Scott F. Schaeffer

say joining about Jim go rest I week. for we're talk next obviously Phillies wants because and us our we'll baseball we're very a thanks But you for want us in team. all of here and you all you the Philadelphia quarter. today. excited have again, Thank to to good again me joining to

Operator

This concludes your participation. today's conference call. Thank you for

now disconnect line. may your You

Independence Realty Trust (IRT) 27 Oct 222022 Q3 Earnings call transcript