Front Yard Residential (RESI) 9 Aug 182018 Q2 Earnings call transcript

Company Profile

Participants

Robin Lowe	CFO
George Ellison	CEO
Anthony Paolone	JPMorgan
Doug Harter	Credit Suisse
Jade Rahmani	KBW
Mike Grondahl	Northland Securities

Call transcript

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Operator

Good day, ladies and gentlemen. And welcome to the Front Yard Residential Corporation Q2 2018. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions]. to Financial host Officer. like Robin today's now Chief Lowe, would introduce for your conference, I

You begin. may

Robin Lowe

Thank you, Lowe Demetrius. Yard for the joining Good Financial Residential morning, everyone. today. Chief name And Corporation. My is of Robin Officer and am us I Front thank you

investors is the at Before begin, that slides, additional on our website presentation please These to accompany slides our information that a remind log find we to you remarks. www.frontyardresidential.com. provide want slide I useful. available may To access to

indicated the on our laws. by terminology differ of by forward-looking to or X, discussed the Harbor Slide risks materially that forward-looking identified statements presentation from a securities certain period As provisions the may and pursuant These the use federal actual could Safe company's maybe to forward-looking statements. results results contain forward-looking involve statements future cause in may to uncertainties the reference that of

a factors quarter as For refer XX-Q first well an release our our the that the company's risk of as earnings Form XX, to XXXX today. Securities and elaboration cause XX-Q the that December filed Commission, Form filings XXXX difference, statement our year including second Exchange the quarter XX-K, with please disclosure in and our such end we may Form

button. e-mail, alerts register the e-mail Investors on like If our and other using you receive to the our please would materials page news filings releases, via SEC website of

turn Front call George. Joining Residential. me over for today's now Ellison, Officer is presentation the Yard Executive George I will Chief of to

George Ellison

Yard several Today, Residential. to Front landmark at good And everyone. morning, announce Robin. pleased Thanks, transactions we're

we property our both that their has well entire manage that approximately as single-family portfolio platform manage. calls, today agreement to our were homes intentions First, of Yard. at a within few almost we have us will as open portfolio enable to internalization and about deal signed purchase process begin management currently of previous the rental announcing HavenBrook management The half X,XXX On of homes, they an months. begun. Today, their property Front to internally closed we’re

buying Solutions, also to to two teams HavenBrook be should Portfolio that acquire homes Altisource ASPS. addition transition In into its an one. portfolio, these manage We’ll end. complete reached our the from great be merging by The agreement and X,XXX resources we’ve year

of management and We’re strong will come Front maintain Yard operating These transactions excited while optimistic with first-class results. metrics industry. the heels important some operating platform operating customer a property quarter Residential of the own extremely its another about achieving best experience in the on which

second quarter Let’s take the look a acquisition. on more little at a the and spend HavenBrook then time

revenue data rentals were $X.XX lines five FFO but properties specifically. intention There call X, portfolio of had three the Rental rental quarters. please your NOI the of released continues margin rentals remains turn the stabilized. be Page XX% increased XX% of portfolios to per quarter. quarter to important the X.X% XX% On of XX% share show XX% in over was end. portfolio virtually to for fixed, was data and last were at Full very the I’ll company Stabilized schedule, second Page the strong to of years. Turnover funding and the you good second X.X%. If last the of company quarter Blended all stabilized for increases maturity rent XX.X%, trend X, some at versus over a year. stabilized core the we increased on rental REO

just the Rob. loan now gone. legacy about call the we I’ll essentially had end, REO as review. REO held-for-sale The REO portfolio XXX as to a under held-for-sale quarter with approximately issue And back only XX XX of in of turn there’re As yesterday, left bucket. is

Robin Lowe

activity, balance financial portfolio Thank you, sheet quarter development. George. Today, results I’ll second and XXXX cover our

REOs end portfolio XX,XXX during which We end or remaining total XX% were Our legacy legacy the quarter Since with value a rental of stabilized. value. quarter, second the of more with a reduced XX legacy of second the of carrying REOs sold homes, XX,XXX XX% by $X quarter, carrying about $XX.X the have further was REOs we XXX approximately at leaving in of million. reduction million

We rental for non-core by identifying continue our in to refine homes portfolio sales markets.

us purchased margin last three during core quarter. we with At Rental price $XXX,XXX. XX XX% program. the quarter quarter, During homes rental at $X.XX per prior end XX-year affordable part pilot of XX.X% Freddie rate a the increased as by rental Mortgage a compared XXX compared an million. company to fixed fixed Mac’s of sale rental financing announced X.XX%. XX share loan XX% a and million and rental X% a Today, increased NOI of of LLC was full sold over to revenue years. second financing $X.XX to is further The previous funding to $XXX had rate maturity or for the of single-family Stabilized Berkadia with the $XX.X our carrying quarter. FFO a Commercial homes the X.X% and provided to of value the has of identified $XX.X had average million capped a we quarter, We interest-only -- of

three supplement. of years of loss our of turn and George. our on and from our slides maturity over net funding numbers X.X on has today, back I’ll the fixed capped reported NOI or funding now FFO, Reconciliations weighted XX% debt strengthening work now and to The are provided FFO now GAAP and core call our earnings rates profile. to including XX we continue this XX% of is to average As years. over a loan, has maturity XX

George Ellison

Thanks, Rob.

XXXX, Birmingham. Minneapolis of this and management savings Yard occupancy our better of at home Homes housing acquires dive company HavenBrook is that Yard. annualized into better is has acquisition of on record almost Front solid in wanted own to this Florida, NOI in In team, The just the was with find directly, more way acquisition, as down a margin We right increases Now believe we the the company. and in and in HavenBrook, bring or based single-family housing, MSAs a time ASPS we mid an a bought managed by and squarely just purchase, strong properties Florida, They first were year-to-date serve a markets purchase, like platform. portfolio grow focused get In to over Georgia we attractive the closer, affordable already at in company do rental that under XX%. X,XXX average deeper XXXX. in homes and wind X,XXX XX% was the for searching was in X%; in Blended and let’s leased. excellent several the first are to Minneapolis, efficiencies track followed turnover, the further puts either to markets The of XX%. grow are These are homes, our With we rent that and scale; more then stabilized all. was built the At relationship. Atlanta, as our numbers we affordable acquired the wanted property we year-to-date in where Duluth, proven Front out their wanted sector. to and a portfolio, Georgia customers of team on Birmingham, strong our XX%.

are acquisition our serves help we As and announce closing provide ASPS successful ideas from teammates partnership make customers. on ASPS build a currently currently practices to months, over changes. happy HavenBrook the and the more over The X,XXX are best we homes. reached to as our ensure ASPS. the families team friends and they agreement next as to should yesterday, Then two In the as these we transition, teams, the of families. our This important to many with this these with same disruption minimal our the this and same taking our our we’ll long morning, took handling goal, care five To are merge like managing at way we families about help an to the ASPS Shepro and HavenBrook homes both. over the their We years for performance thank this at The ASPS we move new is to smooth Yard with from completed ASPS transition. should while well be have our at the in of to are to disruption continuity Front their at and team I to the transition, as mentioned, any team need out that platform excellent also by minimize Bill well. handle teammates I’d end. immediate, HaveBrook on-boarding teammates year

We’re to announce pilot also the under secure Freddie through Mac attractive financing able Berkadia. were rental we single-family program, to pleased

support as core Yard rich, Freddie families of rental homes. and up, integration Mac continues new commitment enormous affordable have the to keep platform. of We margin In credibility provider Residential, targets which occupancy and the live these remains families. along of to our stated Their getting also FFO property affordable NOI our steadily status Berkadia internal our who with Front strong, obviously leading be rent management committed conclusion, will to is there. and growth by all the keeps another is solid the housing complemented quarter partnership moving continually market,

of families. set and own said servicing ours. become We deliver this our destiny. in affordable today questions. of management. after be we away stewards keep we and and several to what over continue to Internal needs the quarters. matter. And are now we property improving. I’ll the around The shortly in delivered, we have foundation take more the growth with been management future the goals importantly, numbers, set arrived line we noise property need story, the news that to been the provider, results the our announced We exactly to and control structural is continues. remove then firmly for open the us place changes transactions Yard the back growth beginning are Goals and better our rental control on journey, operating of turn lay up for to As position is Front and operator. loans talking now Residential removing about we it of and of Ocwen reached. results have to it now housing simplify can aggressive The The last But now from executed today leading, big the we’ve

Operator

Tony from our you. Paolone comes question from [Operator first And Instructions]. JPMorgan. Thank

You may proceed.

Anthony Paolone

congratulations on transaction. and the Thanks

is sure is is just is, anything pending all still? question or make the and -- done the is just that want closed I deal First was financing closed, to

Robin Lowe

closed, all It’s yesterday. Tony. done, It’s closed

Anthony Paolone

there integration sort you do Okay. you in talked And your ASPS -- back to there the brand terms will to HavenBrook name in about Is another are happen the to changed to Yard, with like going platform. just residents, outward facing to is of what or change an Front and bringing happen? of then you over folks what right

George Ellison

I will will Yard. so Yard, over so, if start, the then is sort Yes, you will future to acquired The Front Well, so come become the be want from the folks ASPS, Yard Front can. about of will Front HavenBrook, of you of. talk part Front Yard it brand

directly. touching are consumers we Now,

there’ll out be a particular. front so, build And whole that of in

Robin Lowe

Day know situations kind Tony this in Yes. as changes. of one, you nothing

that’s integrate interaction we as So change website HavenBrook and final Residential. time the tenants. has with their Yard be their their for Front and everything and that the own will branding will name But over

Anthony Paolone

RESI, employee and are first of will And AAMC? so Okay. be and an the not everyone is employees RESI of these

Robin Lowe

Yard. we’re is this first right, Front people putting into That’s the time

Anthony Paolone

costs, look integration Okay. and any might going talk that and all what Can you what about like G&A forward? OpEx

Robin Lowe

There’s Yes. in going the some the be near noise costs. numbers in next There’ll term. some integration be to definitely

term, that. that quickly homes move will But as the fixed to as is be imperative expect and us the costs on platform, G&A. so challenge to cover we there the for noise for near in the -- you The can scale achieve So to some possible, us HavenBrook the Tony.

Anthony Paolone

number, have fees quarter like where last a as of at if your have goes? running or of a do to total sort like look like, other quarters Do and between about overhead I a million that sense you costs so you couple $X

Robin Lowe

number numbers. that on us of those today, pro stuff. on we what -- for time But we’re become today that kind we’ll of not sort out financials that and we’re and over Yes, out haven’t forma not giving clearer giving

Anthony Paolone

the that to Okay, relative of come total or price purchase you. to you and HavenBrook talk from yield management, all-in NOI to over last economics like like the and the purchase the guess the Can fee of properties? just just either just I question will price property in the actual termination

Robin Lowe

think we yield a Yes, attractive Tony. got one, on we’ve very this

And million of final X%. compared I nominal BPOs think purchase like where are BPOs or I is allocated something think that is we’re transaction price today, majority rate to $XXX of probably at probably assets. the XX% that. the if the cap to price over look The you

think there. I deal we’ve good pretty So got a

Anthony Paolone

are real Okay, but you X% what that the to is allocating on estate.

Robin Lowe

That’s right.

going So majority I assets. but big say of majority an of exact am price is purchase to I that you number, that will that not the to allocated give -- the

Operator

our next comes And Suisse. Doug with Harter question from Credit

may proceed. You

Douglas Harter

Thanks.

just I the kind margin in Just days kind current size to sort ASPS versus of about with platform of off the on how this managing of have guess think we that you the Front Yard, to costs yourself of kind last of costs feet expectations? at relative the question. should early this and

Robin Lowe

internal. thing obviously time that think I by look, Yes, the if we belief over is be more efficient this the intention can bringing and Doug,

be -- gives efficiencies in to of internalization. we unit create costs be to to scalable here which platform in and One longer integration drive aims an right, grow, to the more As and paying external sort as things term, is an us But Tony’s out. is there’s some there to and to efficient forward. other to two well to that’s there I internal duplication just need synergies going we But realize to going the to move short-term, this are definitely going be there’s platform, to costs two vendor. we’re are some of said the question, believe

So we the to of benefits grow. continue as scale all that get we

Douglas Harter

tackled thoughts this AAMC guess management, the and relationship? that you’ve on portfolio I your that Okay. And are now what of kind --

George Ellison

Well, this Doug. got this right one us is pretty now, -- has busy

we’ll the that. the two said think we improve both about always can always talk We we’ve look that the relationship. contract -- to So to if see ways always at boards we to try to between of

we today change or performance make that over here we’ve price But and move. -- think improve to structure happen has talked we pretty people got I company’s over, any consider happen soon. the So the it about when with real this would the to is thought I message have we good as we the don’t will no and think inherited making a would stock

and So, time big but looking let’s We’ll deal. keep with in deal story, it’s that’s AAMC we’ll a at due say complicated that. a

Operator

And question next with comes KBW. Jade our from Rahmani

You may proceed.

Jade Rahmani

have, ASPS the of HavenBrook direct Thanks the and employees The very migration much. -- RESI give will now the can you number of including employees?

Robin Lowe

people, actual so kind number something are Haywen The now XXX somewhere we taking from Brook is, But we’re right between probably think RESI. now. immediate is roughly employees George? XX of like and that ASPS those it’s that of XX that, we’re working through that is

George Ellison

some so the RESI to some comments, to so that. go But have my who’s until earlier, teams our be be Jade, might and there’ll families there through now of still But go where. keep most side employees that working that and AAMC, behind handling in will any and to and will doing of who management, curtain doing always said have some will working each we’ll RESI a Rob be we on don’t out be we’re what migrate property I’ve folks but both on Yes. it’s AAMC. function disruption feel issues customer RESI, -- will now said in they’re service But right the everybody goes customers we’re as --

Jade Rahmani

…. or this acquisition the competitively bid Was was

George Ellison

[No].

Jade Rahmani

to acquisition issuance no confirm, ASPS? or just And equity Okay. negotiated? privately to in either involved the ... there payment is the

Robin Lowe

No.

George Ellison

No.

Jade Rahmani

$XX fee figure? $XX contractually. I it million And Can color saw you to give any on the liquidation ASPS, was million the

George Ellison

change was in that little payment a of million The a change $XX to different. of control The would ASPS RESI. a million is receive $XX control

a were who not purchased control million change be weren’t new did that ASPS, and has if was on $XX and hire payment their owner there that of was years they if left still XX contract, So about be that to RESI original chosen. to

this So that’s really not the ‘XX. waiver got when we back Amherst That’s negotiated first we in transaction what what the first on was.

that point. So the starting wasn’t really

are versus people, with is that pleased over $X very for if so was the a and million resources, of now So, time really that $XX million separation it, we figure. million myriad $XX

Jade Rahmani

the if the million there And in in if stand? future, change the control $XX payment still is -- does

George Ellison

No.

Jade Rahmani

Okay.

George Ellison

gone. It’s

Jade Rahmani

… go ahead. then And

George Ellison

Sorry, it’s gone. I said it’s gone.

Jade Rahmani

to portfolio the think to respect the half implications are Street with Renewal. what this And continue manage, about going Are to prior Main deal? Okay. of they’re to

George Ellison

of that the the Well, answer same is this huge it’s sort big -- Doug gave I deal. is, on to question which is last a this a

pulling make to It’s anxious. management right. this appropriately property -- we inside ourselves. sure of We We’re we’re want do

And so, people start service. whatever. we’ll and numbers Rob then be as out we have on supremely customer figuring said, to and And focused

we’re putting Duluth the deal, that call. So a big this teams two doing and in today is together actually

we’re the this. teams on XX:XX our starting after O’clock to So first integrate at call with

of really is piece do we’ll So the road. the internal, the their those the the -- and of focus then now, to will X,XXX property of from they’re X,XXX, can because down center HavenBrook that, have handle HavenBrook teams ASPS than Right but is with the year. today folks we’ll with with more that’s focus. and people MSR we the expand the end is deal going today headline by management,

deal down as really the focus that’s MSR So, the we’ll road. with

Jade Rahmani

are I by means about that Street managed so X,XXX Renewal? Main Okay, properties think

George Ellison

about next one the X,XXX one. so The year to phase as ASPS, with with do the down MSR phase I five from and X,XXX with want today Main to over the then X,XXX will Street, end. ASPS X,XXX by first And X,XXX There��s the we’ll X,XXX that’s months, put HavenBrook, from be said the this road. they’re we combined deal together

Jade Rahmani

Did active active was homes? and were ongoing, platform an acquisition that renovation HavenBrook buying have still they

George Ellison

you or and -- so really did. ship, the been and as team they’re probably let’s a from they the acquisitions a thing numbers, up. really tightening saw of in tightening tremendous on they started, two, Whelan they year the job As focus really of it’s -- Pat stopped I did his But when up -- this mentioned, last

good pretty numbers. have We

to very, be up putting very some blessed We’re numbers These integrate good well as guys’ metrics. ours.

higher. occupancy, have theirs We is

We bit is lower. have little theirs a great NOI,

them side-by-side, you the If excellent as ours. compare same around an rent is increase the It’s excellent, platform.

at And We people. four the I at, are in mentioned, good numbers so, wanted. the platforms, we know are one or this looked different as -- numbers Theirs great. we like five fit, don’t we we markets looked

spaces a in was So good. it They it it’s like a housing fit. a really us, was affordable are perfect --

Jade Rahmani

triggered. at in place, for that the on you you transaction do return when put timeframe what financing the I mention years, think management according where on and capital Because outlook want about need on of you the When for I return -- over April do you is thinking starting generate guys capital, earnings? what a return of that the invested to consider will they performance Xst, just a this look the be next to AAMC to underwriting think event the achievable otherwise default and agreement, equity two X%

think, you will do next capital two on what the be? years return So achievable

Robin Lowe

we I we quite those there. see achieve confident can Jade. issues are don’t Yes, any numbers,

Jade Rahmani

or would $X.XX I per about expect share, think So be so that to what achieve? a is that you

Robin Lowe

into we see the requirements as Jade, system. meeting in Yes, -- but I today, don’t say, I any issues am get not AAMC with numbers going exact to it’s the

Jade Rahmani

know. to good that’s Okay,

those that did historical about Just I any look portfolio maybe costs, you sense wanted is could you CapEx, more turnover numbers? HavenBrook’s you seasoned, since the ask and at at if -- to look of think historical give

Robin Lowe

better But mean $XXX numbers I you $XXX they million are because probably on range a Jade, I now. -- more on we in is in us million, that bit a have which Yes. CapEx than don’t basis. sort historically think that’s for exact little shape. maintenance CapEx to have good houses I CapEx right spend the give is of Look,

slightly investment lot in have quite guys these money something is when it. think you about and the more aiming into properties renovations, average a to $XX,XXX average -- a properties of the think home I the the put which like the some

are homes maintained these for. So well kept well and

some stat that’s good And forward. so for done we as obviously go

Jade Rahmani

then turn on the And Okay. anything cost?

Robin Lowe

right now, number don’t Yes. about give specific Jade I that. to a you sorry have

Operator

comes question you. [Operator Thank Grondahl Northland with Securities. And from Instructions]. Mike our next

proceed, You sir. may

Mike Grondahl

on with should The six five nice we over that sort to the months, occurring Congratulations together? year both by woven Yes. end do guys see. to be you events, think next kind pretty integration HavenBrook, of of about

Robin Lowe

Well on all to said move with certainly properties of George our Mike over. is those as ASPS piece that the X,XXX agreement ASPS

of that on-board. end all on the be of the by year should And forward. see how So, it integrated of then rest going the we’ll goes

George Ellison

sort business. is to of HavenBrook the property Yes. skeleton a management

obviously have make bigger We folks needed. and of where will sort that attach to ASPS’

as lot I team than now. a HavenBrook more can they the handling are right said, So handle

they’re while. Mike last the So buying because excited haven’t been said as a for they I on question,

night. homes they very get everybody lot to So, a We a hall are more excited town to had manage. last with

that news we for ASPS think -- bringing So, -- doubling -- the than or lot. that’s and it’s be hope over, doubling more size -- virtually might great them, but HavenBrook we a

why want that’s folks, more So the boots ground. we on more

we’ll going think But to be is well. able price that homes transitional I so, move little as bit after And year over a by the for all end.

Mike Grondahl

from it. that? three two will it of this was that it will the level, margin. high signs how by years, from right George, to And be a mean couple will What see a we’ll now, I years we the that that decision. worked? see internalizing, is track external numbers points How the we Got in very

George Ellison

Well, give question. give accurate the the you -- high level Rob can more probably your of you and I’ll part financial

work As in put and together that together. my said all we speech speech, I

that’s about So, we speaking, really all believe.

this some said. I we been looking we’ve for think for as time

the you if and So, start size, think convinced today of you but bring can if things, you XX,XXX, to yourself. getting when assets get bought it significant what business, that be -- this, moving I the do that just would you the could I team me XX,XXX, you XX,XXX, down we can think saw homes, two control you particularly as to out expenses fine, it actually expenses you can of XX,XXX

to said the to no bottom-line. and property and That our also want my own our that But really spin I I we goes -- don’t right in to and believe want want comments, We say disrespect want And on want somebody to that so to this talk customers, from them. us for to our to customers them. I own believe touch we them. the with between hear that’s great managers. shareholders. We We I

in contact and customer this So incredibly day dynamic that and age, is whole powerful.

we And so, was okay, way but personally originally it are it and management something much want to customers to our to do that I more was something the that when say we want manage to team want our the about the our those we views structured, comfortable shots, communities my call want people and that. where raise passion and we to homes, and we through

a longer, -- to customer financial they believe the that’s stay I think think more leads although customers I it. obviously customers. I service when we I that. and get results. -- of you continue they think good your control can use we I and But it’s customer So so And mean means happier better part product do customer and service really

enormous that’s about So have homes. benefit. around an good Well night, X,XXX close a who managing that in thing. Atlanta with think and were now team to what also have I -- folks going can they’re you homes can it start last to push have people talking X,XXX been and we to But

power. the I will think it over property enormous managers pricing in And of all Atlanta the be we biggest is companies. one

pressing of his they the property and me to at been internalization on numbers it, Rob has really convinced team team, management, of they look of me are the So right.

Rob, numbers? great. XX,XXX, in today, was But it we’re you if want know, to so do to going give if don’t XX,XXX. I And more specific this

Robin Lowe

things. I’ll two say Yes, well, just

XX,XXX this think One people just George’s have it, I vendor by I reason, why point us can internal, we asked a of are before Mike. paying and there thing you to kind are the realize even is think with of that’s two efficiencies a this larger. point, internalize don’t third-party than to there is, lot operating internalizing homes

it’s I And should definition, our performance. think operating secondly, So just thing. that internalizing by a improve just forward going then

we’re As way. we the scale see when increasing benefits more I go in to now, so without property our an forward said earlier, fact we management that have internal be we’ll efficient of to us the sort and costs financially gives platform that ability correlation up and going as

Mike Grondahl

you flow. Got $XX are to it. associated with revenues How And with giving million that? about cash any do are the we that, paying Altisource, you or think

Robin Lowe

we sense, the I’d that for the some property other tenants, of that of some example, share charged will, -- give some we externally. that example, just with one you because would income gets manager In to

be so And we’ll now of that all internal. getting

just so the that’s side of a one of say. I’d revenue that’s So really sort But example. it,

Mike Grondahl

And that Is the Got it. cash from are flow you seeing? other income. that what

Robin Lowe

right. That’s

Mike Grondahl

I mean some flow cash revenue paying grabbing pretty basically and mean resources. I that -- are you’re those and people and numbers, them small

Robin Lowe

cost other income, what like payments give think extra charges a on the tenants, side. might So if you optionally is. work, you an some about, when stuff the charge when -- they or you how markup an work may that that, might one to renovation agreement They external vendor on vendor of do would the

on cash savings, know side now a a for to real tenant And so those is flow expense we saving it’s us, the cash and the come right, it’s flows this side.

fee, we are HavenBrook cost property and in yes, taking them that of sense we the at ASPS, with said off yes, combining as So, in terms earlier some and buying talented people platform that so resources putting from we’re platform.

Mike Grondahl

tailwind. we big And seeing are -- Got there things keep is just are -- then data, industry rising, it. a prices home lastly

larger this of an How you the lower portfolio, you NAV. have about obviously benefit end talked houses faster gains, that price to of seem going on up of market. kind to be and unrealized $XX the are have Those thinking those $XX HavenBrook guys are at than You where now Haven they? points. higher the billion been Last with about you -- number $X.X quarter, now sort

George Ellison

had post at global And still just $XX NAV independently that sort about am pre-transaction current $XX I’ll in reputable can we’ve I analysts. of our But tell that tell is a transaction of I you Yes. firm I’d NAV later very talk you date. very, by that to convinced range. validated that absolutely

not that, just is validated. this telling is me you this So

Mike Grondahl

it. growing, homes. you digest Got mean to months? you After absorbing you’re looking last then forward this keep I move you I closed, one. like X,XXX then got And and feel do are When guess you’re that HavenBrook a or to and few doing today in ready is you

George Ellison

is so just regional perfectly to minutes be on HavenBrook -- starting transition in with closed, But Well, folks. a the XX accurate. HavenBrook we’re

important. Freddie on of which extremely are the We this and Berkadia is working financing piece

done think or it’s space. loan a so I dozen the a half biggest others. in They’ve they’ve this made

for So a and Freddie. we continues both That big partnership that, Berkadia that deal we with them. is -- hope it’s hope partnership

So, important that’s this. piece of an

So conversations a we in committed do to we’re to has too. this space Freddie they want with really do we’re what interesting that already having next. of things can and lot

hoping we’re continues. friendship, partnership that, So, that that

on-go So we’re hands on There’s working working that. on that.

think I do tomorrow, what next those folks. with that we next, -- we’ll do start

buy somewhere Rob, that’s So we’re I said around but don’t looking million. – to much and think already $XXX how begun, capital already homes, for have I know we more you

Robin Lowe

Yes.

George Ellison

homes. already we’re out Mike, looking for So

we So, talk we’ll that. to the probably sources find where more

it our them I continues. of ton guys, the want work The So, Berkadia. obviously, of everybody a folks on all here, work. team Freddie this. The to works and at for HavenBrook, is thank putting

call buying favor. working in the stay but is -- this this so we done, and right GSEs transition make work, to we let’s to do with back getting hopefully their keep So back over, can sure get homes,

team, flattered hoping Leopold work excellent we’re guys. with with incredibly still they’ll be Dave that associated Brickman, folks, to we’re his and So us. those

some transition to there’s follow. of so a watch more will the hopefully So could financers that’s we’ll buy homes. this have financing go space, more the Hopefully we lot to creative and down, --

Operator

a question follow-up from Tony have we And Paolone.

may proceed. You

Anthony Paolone

thanks. Yes,

Just you with of a any the ones. restrictions there With the to additional on rents, affordability are regards given placed financing, components? couple to regards pushing

George Ellison

all, None at Tony.

Anthony Paolone

Okay. like? of And do at opportunities deals type June going over you where you do as do else anything out that’s quarters expect as that see looking debt, next few least and take either or to the that the or you Mac of Freddie or see XXth, more

George Ellison

We’ve deal. Berkadia think we been tails just other Well, GSEs know and space to talked and housing Fannie their about do as on trade about all formal a the this a crisis, deal, into and Freddie, to it’s it. off the -- said, is s I the coming of big I the be with is something working Freddie side the

really trades. have Now significant done both material of them

we that it, serious comment more about creative this, hope there’s we it, and stuff. about serious nothing nothing serious Don can about we’re serious to report. it. But leads about to is Leopold Brickman is some is started Layton I But conversation and So it or Dave on, have

guys. those of So was it when we’re as frequency met, same we -- one the

borrowing we’re be it’s we’ll flattered Hopefully it can where So folks, from long-term go to money incredibly those a see next. partnership.

Anthony Paolone

just over time? Got it mentioned back you’re us, where thinking how feel looking just just to just it. And you’re you to of get push debt-to from where or at take homes it’s kind and net taking leverage leverage you about you forward. remind loan-to-value whether and Can EBITDA continuing to level buying comfortable or a want you

Robin Lowe

of if XX% you sort that line We’ve like. always is Tony, border our kind said of

this us I it. go transaction but over close that, so, to it And think doesn’t takes

over to forward, slowly we then as So go be. sort expect would we that’s of And roughly I time, de-lever speaking time. us where over want

where I we that’s that’s don’t changing. think are So really today.

George Ellison

will this property the is opens on now opportunity. book which pulling now story a the all we talked management about we’re a we’ve whole you wanted. that Yes, these first starts and was second new up if This size about internal calls. that This getting lot

levels we’re aggressive we’re about pushing understand views that that So We different the stage, at. in have to a comfortable leverage different owners growth the that.

own what LTV XX know. people, as different means you the have and to but different to about views that with means XX it we have all that background We things our

in more anybody. right about just the than are middle of the REIT space You

for So, we that pushing a lower would we’re much respect push obviously that. leverage. And and that

We and they want refunds growth earnings. and also owners not have who they massive are want

they’re more with comfortable so And leverage. higher

much line but top not are you probably more issue fine are ask about some to leverage. are and it. about answer at a as it’s the are we concerned our I’d holders to less of owners, you them dogmatic concerned look see XX So, list holders know our about some folks and this who

folks higher probably balancing and letting we like leverage run that watch will it. bring some So, we’ll don’t it of and we’ll very about time. it it it, be as and watching understand high, and a cognitive over it’s now continue down act we it, too Rob of But will to not said then get balanced we’re it

Anthony Paolone

how with And that then that or regards operational just of like be will a there it. Got become sort somebody the to structure, your will work? or day-to-day President COO just face, a

George Ellison

Vice a it’s still socializing President going lot a be and people. a Yes. Property and There of to of of group we’re Senior doing Operations only is

people, or his So, with will a assure and coordinate going with obviously announce we’re Eruzione yes there team. who run names person the is those to property and and be team, management Rob not his he business, point will ready to but

person the of all of he oversees pretty our what so most strategy every and sit And that things. Eruzione middle will day, in does much

be Rob person this team. his of his so on And and will that other side be the and person partner will

lot it’s so And and about that the talking but an to we’re person very Duluth a will chosen We’ve evident incredibly things, in of lot shortly. be role. people of important

Anthony Paolone

of last Okay. back up revisiting or Do just such and dispositions little restricts you a just And that portfolio of pull kind have to bigger question. any that through? intend in coming properties you’ve the everything the move undertake in bit just now a a review

George Ellison

Yes, yes.

see I it’s they’re know our they we people to -- NAV what the we worth. think worth. think what are around -- know I question, are particularly what they’re important what important and says think to worth that homes And for it’s worth Rob I

of estate that homes programmatic, mark that I hashtagged program might is all be may our talking our annual So think it, an prove we but we disposition real disposition it have haven’t where and hundred we’re our prove several to think to yet -- strategy be we about to worth, is.

good if to that’s to can think get I into, convince my discipline do we’ll see teammates I that. a

do higher we hope bought priced that you that our would There have then folks. are it I So, not doesn’t yield hit formal with get them. very place well housing, in business things that That that the fit if very, ducktails a probably profile, our in doesn’t money that have, bogie. yielding, it’s are homes a some low

go existing go as locations out. think I portfolio, more homes this in our far we some the probably acquisition we still know we’re come and as through ranging have you’ll you see those out. So, from to Also, and stated desperate some as legacy business

Rob working for a think I you XXX has so that on. random mentioned masons

disciplined I going Again don’t I have yet, we feeling, everybody their about that dispositions. has this. So, a start immediately. be yes structured why probably think we opinion but because saying to the there’s I a team, have dispositions, own think that don’t to I am approach fully that initiate to we’ll that, try to

Operator

and gentlemen, of call would to remarks. that Q&A to concludes portion I you. like for call. back turn Ladies today’s closing Thank the now over the our company

Robin Lowe

much joining a day. Thank call very for today. you have great a the lot. Thanks And

George Ellison

Thanks everyone.

Operator

Ladies This for you and does and program, day. you all the thank attending today’s gentlemen, disconnect. a have conference. conclude great may Everyone,

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