American Homes 4 Rent (AMH) 3 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Nicholas Fromm	executive
David Singelyn	executive
Bryan Smith	executive
Christopher Lau	executive
Juan Sanabria	analyst
Joshua Dennerlein	analyst
Eric Wolfe	analyst
Steve Sakwa	analyst
Haendel St. Juste	analyst
James Feldman	analyst
Michael Goldsmith	analyst
Adam Kramer	analyst
Alan Peterson	analyst
Daniel Tricarico	analyst
Austin Wurschmidt	analyst
Jesse Lederman	analyst
Keegan Carl	analyst

Call transcript

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Operator

Greetings. Welcome to American Homes 4 Rent Third Quarter 2023 Earnings Conference Call.

[Operator Instructions]

Please note, this conference is being recorded. I will now turn the conference over to Nick Fromm, Investor Relations. you. Thank

begin. may You

Nicholas Fromm

and you conference us are call. Officer; Operating Chief Thank Financial quarter David our XXXX Executive Officer; Chief Smith, earnings With Bryan Lau, for morning. Chief for Officer. joining third Singelyn, Chris Good me today

differ advised are may those business include could in that number are from these to forward-looking other results statements All our These forward-looking in included to of the in call historical uncertainties results that a cause actual of that statements fact this that risks filings described this factors be risks materially SEC. in adversely statements. projected our statements. statements releases are and Please and than and other with press conference could our affect and call subject future

only except required speak any or update of of new events as obligation X, information, as result today, revise no assume XXXX. a as statements future forward-looking by otherwise, All law. We to forward-looking whether statements, November or

reconciliation A and non-GAAP package. included is information supplemental press measures our financial earnings in release GAAP of to

and results, our package. operating and information measures, our earnings financial detailed note, including release supplemental non-GAAP GAAP are As fully and in

these audio www.amh.com. conference documents as You can of and call the well find reports webcast on SEC our as at this replay website

call With to that, our will turn over I the CEO, David Singelyn.

David Singelyn

of another single-family initiatives. testament as posted team's stability is continued into occupancy which the and predictability we and the to healthy above quarter. and everyone, operational execution Consistency, growth historical of joining you levels, fundamentals thank the half today. Welcome, of strong the remain Robust a and year our us for second rentals rate strong

the Chris core for quarter, growth $X.XX year. rest share growth or outlook share of third will these $X.XX a full FFO full guidance representing year, and basis. X.X% per strong at year raised over FFO details of the the later the have on core to period in delivered midpoint per $X.XX, to Due last the we X.X% XXXX call. by results add our we more year the same For

From economic a begin end U.S. uncertain. macro year, looking question outlook the perspective, as near XXXX there of remains and is that towards the no next we

had in year, memory. have The rise in to interest on the does continues Over the not and inflationary appear environment subsiding. past be sharpest the we recent to consumer rates challenging persist, pocketbooks pressure

national home However, real of some this have rental fundamentals for year, affordability once the best of supported It rental again single-family estate and its continues all proved dynamics growing single-family challenging sector housing the shortage, the ongoing demand sectors, resiliency. by to lifestyle. the

development XXXX. of our impressive Furthermore, operating AMH platform results footprint, one-of-a-kind produced integrated thanks to over superior diversified program, and the portfolio has course

strength are asset for and confident that will provide cyclical durability class We the another platform. the AMH of next mark year for

front. the to investment Turning

Our disciplined to approach unchanged. growth and patient remains

We track predictable stable backbone this homes the are on to of and as growth channel deliver our X,XXX strategy. around remains

capital given Conversely, resilient values acquisition the of opportunities remain cost high limited market and environment. home

acquisition teams we make when only economics opportunities, Our acquiring and the assessing sense. are are continuously

advantage take change. more a opportunities of to prepared way any conditions when are We in material

current To housing the environment, capitalize continue to the front. disposition on be active on we

through job done quarters first the sales terrific Our the year. teams a have of X executing

cost benefit, form optimization today's to disposition environment. In in funding capital a of addition the portfolio attractive represent highly of proceeds

thanks XXXX. teams close the sector, our to we to execution demonstrates Overall, this to platform. from and the single-family was strong a power great And look a resiliency rental of the consistent of forward AMH quarter that

for over Now I'll turn to it update our operations. on an Bryan

Bryan Smith

and drive rate well-located quarter seasonally homes occupancy Thank continue you, Demand Dave. for solid strong high-quality, QX was AMH. for growth. to another a

XXXX done an excellent finish and well turnover next positioned season, peak year's and Our we as are year. we job team has this head navigating into

blended and at renewal core new of remain for posted we which growth occupied XX.X%, quarter, remained and X.X% average revenue in drove X.X%, rate the our our the with expectations in averages growth above days to Same-Home significantly X.X%, continue for healthy historical respectively. pool Same-Home These were third results line X.X% and the For quarter. portfolio.

Same-Home expense slightly came side, expense growth the core On XX.X% expectations. our operating than of better in

guidance our Because expense reduced basis on of full revised we these our results points. the and fourth year quarter, outlook have modestly XX growth by

last elevated the that period this tax of the quarter timing remember Please resulting property final represents of year's from year's growth third accruals.

drove growth NOI of Same-Home the for core X.X% this of quarter. All

fourth and spreads rate October's blended new, period. occupancy and respectively. better the expected. These than basis is X%, XXX are as average XXX averages the days than points both was higher, into quarter, long-term more And more blended and Heading points XX.X%. X.X% our this basis X.X%, were trending and spreads renewal occupancy in than Same-Home occupied pool for are

our a Before provide update program. as and implementation to wrap I I like up, and fully The training the are teams Resident stages. continuing staffed quick would completing planned, on rollout is our XXX

internal in Although in the its resident-focused to resident we scores. of maintenance already see phase, satisfaction investments. program are third-party our surveys starting and Both benefits shown have early the still is marked improvement

time. our across the the to Review have forward portfolio scores Google improved. realizing look extensive benefits addition, this program of In We over

the we of the positioned year. pleased closing, quarters and to from first a are well XXXX strong close for X with very In are results the

Now Chris update to the call the an on for financials. I'll over turn

Christopher Lau

Bryan, cover good areas my Thanks, today. and X I'll morning, everyone. comments in

earnings our in third, balance quarterly and review sheet which update increased capital an an press our and second, of update on plan; results; release. guidance, close our with on XXXX I'll again a yesterday's First, was

our with platform off of quarter execution. operating solid produced another operational Starting AMH The results.

capture historic navigating occupancy great demand seasonal season remain ongoing robust rentals peak single-family job above into teams a for while leasing did that averages. continuing turnover spreads Our and to long-term

of basis, $X.XX growth. X.X% On representing representing and adjusted was as $X.XX program, generated portfolio our growth we quarter X.X% XXX joint venture as to an FFO consistent and well Underlying unit portfolios. FFO, core homes development owned X.X% our our from wholly of total per and growth year-over-year Same-Home share of delivered NOI year-over-year FFO, year-over-year a execution this from core which

acquisition mentioned, $XX another as traditional an the and to our disposition Dave hold. rate development, largely Outside on million programs we average mid-X% remain at area, generating active properties net of national approximately cap builder XXX of quarter in had selling And continued proceeds.

had revolving facility Next, adjusted sheet, I'd of the to and undrawn. was to debt, update $XX on our cash was including end plan. our the preferred on X.Xx. fully like capital share the of a net credit and $X.XX billion million balance quick At shares sheet our We balance approximately EBITDA, quarter,

constructed to CapEx X,XXX total and capital, AMH and X,XXX remain and an of deliveries investments well Development this From AMH year's invest property-enhancing ventures our ongoing total deliver between between $XXX plan overall programs. homes we contemplates as into XXXX as track million capital perspective, development and billion home newly pipeline, which on $X joint

our the a the questions, I'll cover AMH was XXXX performing again Simply machine to call is earnings we which Before high your level. increased at open yesterday's updated in release. guidance, put, press

are ongoing Our are the and than historic sustaining our despite the better spreads for averages. robust our technology-centric to previous environment, operating producing capture expectations. continues long-term housing, platform leasing innovative focus the platform And that demand tracking occupancy investments above leasing single-family on expense inflationary well results AMH controllable and rental

XX With we in Same-Home year outlook, the of points by midpoint coupled have expectations our core X.X%. lowered Same-Home year to year mind, expense full NOI the to our our also core midpoint we've that tax in growth X.X%. with operating increased of turn, full basis property unchanged growth And full

activity, portfolio, growth which a full expectation the along across our midpoint entire controllable generated X.X%. have cash we income expectations on our per represents share, with $X.XX robust expense XXXX of to improved disposition year-over-year outlook our year Contemplating the better-than-expected interest core of now FFO increased slightly from

that U.S. portfolio development close, been underscored reiterate I'd solid we by and in despite seasonally outlook, a economic footprint, platform position to the continues be another integrated growth. thanks this superior occupancy diversified operating our To and AMH quarter, like great uncertain close out program. one-of-a-kind to as rate And XXXX, to strong has

open your with that, to Operator? call we'll And questions. the

Operator

[Operator Instructions]

with Capital Sanabria BMO Juan from Markets. is question first Our

Juan Sanabria

on your maturities. just question, XXXX on First thoughts curious debt

just XXXX, year. those know sheet in balance a happens with just us give that line. terms great I you're of your in could when But what unused the throughout you the in of refinancing expirations if sense is place contemplating

Christopher Lau

Yes. It's question, Chris Juan. Great here. Perfect.

As closely. sheet. In to working very way you we're can I a our bond imagine, general, securitizations message topic, in very fully our the refinance unsecured that towards top has of our our say really been watching mind unencumbered us, message from quarters for all out that that similar along would something to market, our plan balance into prior pretty is

cost today's been we've some of disposition additional volumes of the the maturities will have at a disposition next may the our market, point, level is we success address of portion consideration depend relative The this to given disposition realistically, capital. especially to year's of this opportunity seeing in some debt, an however, X. of on But or some with recent quarter next over

of that this timing the starting your this they open penalty actually in XXXX keep mind And repayment end our then to of for from until question, without XXXX. quarter maturities, a don't up mature perspective, year fourth but

maturity. window year have we're nice the to unnecessarily too over course pushing actual next our but the not right we to also timing timing very wide be that a So opportunistic, so find of close

Juan Sanabria

with this bit et Great. the systems, to of on And investments the cetera. a regards on prepared then just -- kind I the remarks think you commented little in

'XX off expense base kind expect inflation Just in think items. curious think about on and the line other for we about the operating how just 'XX of of G&A cost to we should what should growth

Bryan Smith

into operational managers. is program. this The question. lot Juan, into do doing investment year Yes, that, as field, as example, an an XXX just A And had this of was investment our work it more the improving reminder, initiatives. to in Bryan. we was of that a from very property our good with made own service customer major our Resident

implementation And are finalizing But costs, phases. that at is majority side, staffed. personnel numbers. fully XXXX the We're from the the of the and in least training program

a major program. for increase XXXX in expect wouldn't I that So

Operator

America. Our with next question Bank is Dennerlein from of Josh

Joshua Dennerlein

elevated Appreciate all the the coming kind last can taxes or you year where this tax any from now? XQ insights given color through give comments in year. on But of bills accruals the are on

Christopher Lau

Sure. here. Josh, Chris

than now, step past kind the different the Florida Texas then my official Just and information some receive number post-appeal certain Georgia. locations, initial on of to including a I rates millage of but at still majority counties in including and update, bills we're beginning for for no remarks, back, values, general markets this touched like our a on the And a on level and tax in high largest of we years. portfolio. taking we're in although point this majority have At prepared waiting portfolio, of of a indications

final reminder, receive midpoint not of over the to just, So reminder, next has seeing keep data as of information any need in all expectations, mind, this which, is across that at But of as X% a range a we're on couple point, county-by-county we a basis developed portfolio. still months. a outside the our

Joshua Dennerlein

out, Chris. metrics rolling Okay. we what XXX the far that And over Appreciate outsiders just Resident of Like like then for there next in are to kind of focus you as platform? as of XX that, the as kind its we guys should the months? on look is kind impact any should

Bryan Smith

the Bryan. The is resident is program on really focus this Josh, experience. Resident all-encompassing Yes, XXX

from retention, control improvements in ourselves most that will So the others. time, and, experience importantly, to better over resident us see, in help costs to differentiate we ability improvements expect

is program early very the The are indications well. that working

One of industry-leading scores. and follow levels that the improvements for Google are to across the Board seen those scores, we've Review measures we

So with We're but forward retention are on we're future, impact the cost indications looking to happy well. the working early and that control current it's progress. in real the seeing

Operator

with Our is Eric Citi. from next question Wolfe

Eric Wolfe

Just where curious any at guidance, your and based will earn-in on sense loss-to-lease year-end? be for your

Bryan Smith

in we is the in Xs. loss-to-lease and XXXX to be expect Eric, Currently, our this earn-in Yes, sitting is the low area, Bryan. X%

Eric Wolfe

Okay.

of so And low little by bit end the just a loss-to-lease lower probably X%. year the that be than

of down like historically, end the X%? so by to or like something probably X% you'll the Just comes be year, close it

Bryan Smith

Yes.

there, success you a saw talking the I slight had that's direction I loss-to-lease. think We think the compressed little about a last quarter, you and renewals hearing were of in of the on but the had a I we've that little reduction really. bit trouble the because

So really forward be it will momentum we're next to good shrink, looking year. But if it nominal. into to continues

Operator

from Steve ISI. is with question next Evercore Our Sakwa

Steve Sakwa

for, you -- say, Could notices Bryan, October just November, November write where sense out I out went one, -- just quickly. could the And couldn't renewal blended? I say, you give where renewals all First just then down us new, the repeat a December? for, you're numbers renewal, sending for

Bryan Smith

Sure. Thanks, Steve.

mailed what to So we the renewal then in our to the And expecting in spreads December, we've Xs. we've X.X%. class October to November and numbers, were similar and said we're be regards for was X.X%; new the results X%; October. leases, And blended final saw what in

Steve Sakwa

maybe it's guidance, early you but then the guess, yields kind on to would development that that look I year? starting to you know year, program today And of where development I on you about into things Okay. next just would full just as next pegging, And for expect ramp? you'd be be think program

David Singelyn

Steve, it's Dave.

So part we sizing, program. we is to have going that on which The can pipeline have moderator of grow is and significantly the the be first that question, a capacity we development capital.

allocators in against capital appropriately program. that so We will to capital be want available. is the And prudent that size the we program

where to and primarily retained be is in cash from our the capital as recycled sits As area program somewhere would funding today, today, that it same flow dispositions. it it expect I through

When this the mid-Xs for we you talked now both We in of are had second moving in the and the high talked the cost a prior third the first the We about number Xs in yields, we the properties. talk quarter. X% And quarter. already were about We had about for in to quarters. area.

So year And improvement track X% still next start expect that's area, nice I the year. the and into moving we're or a on towards where we would there. would

Operator

Our Haendel next St. question is from

with Mizuho. Juste

Haendel St. Juste

the long-term the drivers some was in when in question, could get you the debt to quarter, I to maybe back you light and Chris, first the average. on broadly just So there for bad hoping shed expect increase

Christopher Lau

seasonal talking in would the traditionally unchanged landed quarter, that bad with overall, the of Look, debt pretty expectations quarter in with area. will about debt higher which general, leaving third everyone consistent the I low fluctuate we're our third the debt slightly experiences especially year over remind course naturally when But once we year, bad were expecting, associated move-outs. full bad what again X%

we're if we've in country call above normal. a our run everyone slower below court number XXX that area. we have That's talked long-term debt holding times, continue about rate, area, bad as And or in, still recalls, as it, moving the slightly across which number a to of of basis than points modestly systems is

Haendel St. Juste

portfolio. more to more more tight. I getting buy here? the broadly, know private broadly it. just cash on more the Got And more inbound, that. any sense that Dave, opportunities inventory Appreciate landscape maybe you transaction there to to in maybe might legacy you, the inclined from percent of upgrading open the some MLS you'd be and one portfolio, the for about selling is curious, operators. thinking be midsized I'm are in curious do via trades We think what then maybe here? guess, I'm you portfolio,

David Singelyn

Yes.

underwrote not So tradable. XXX% We us talk is the it. just you're X for a of national all total and over acceptable our about the of third-party found third price we acquisition XX,XXX market point and one-offs, in the We well -- met on homes, pieces economic homebuilders acquisition right. maybe as criteria is as a basically at X X quarter. between market homes It that and criteria. that quality opportunities The bought not

first thing to greater? And about that where the look bedrooms is age the don't what that are respect characteristics. of X detached but wouldn't talked there and of and -- those what are Are is say being they at those With quality assets, the it's acquisitions of picked homes? they is Are some assets, are I the assets, the or what are shopped. I up, we portfolios,

few we quality underwrote Xs transact well The portfolios, in I the X criteria. we as yield. seeing either true part, very that for criteria said, were are the Xs, high And only -- our is meet or one-offs. a we typically don't portfolios those that this as the on in found that met the with we very, the that both could the as and as most And for ones

Operator

Feldman question Fargo. next Wells from is Jamie Our with

James Feldman

you was multifamily X the finally pain the first so last kind on saw supply. where see weeks this companies of quarter or even So first or the some

and XX bit impacted like hitting hitting X% developers a -- panicking developers Sounds the year conditions. little business

would this the single-family to tenants staying, more we're or seeing of deciding as the either the even would consumer concern of last been think consumer the a seen moving the some you hit before of you properties change XX-year as business Have in signs economy in be other stay credit first so? impact might also So time longer I since about credit, there's multifamily about some over some see comp. maybe in month growing using to or conditions or types card those for any and the balances of X% pricing

David Singelyn

Yes. The than is are different Dave. be be Jamie, going fundamentals, it's resident we single-family slightly about will talk multifamily. first, The they to customer When different. different. slightly profile

And also million-plus housing has few your have correct, are And country a don't this would I other is X statements that households statements. housing. quality shortage, add huge but a

thing And light And into a affordability that XX% affordable to more -- to the today. home question. buy it's one to it than is is more rent is the in our today, coming markets

but staying demand are That residents strong. very, the so is very remains And true, longer.

are tenant we've beneficial work demand of we'll concerns. went significant residents And monitor communicate We through as where And set mutually concern. been to to through them. with tenant to And acceptable COVID have health behind solutions. our and respect is this. that there out health, they with was systems and And

So in still today, strong, it quarters. being there. I very prior very out demand It's solid where see the was market

James Feldman

legacy development color assets around your either to expense our the nondevelopment growth in And Are even portfolio? versus performance blended rent different a your been has profile operating development then profile, the thinking of the profile, team about some your able CapEx assets versus of acquisition you the assets among assets. different Okay. give lot

Bryan Smith

as We're AMH noticed as this and back re-lease. homes is playing Development cash, out really it's into the are Yes, to to get a obviously that quicker question. is good The These homes Bryan. up That's well. Same-Home expected. are cash And tracking Jamie, come to portfolio. turn, to we we've what very starting quicker lower

out So is as that playing part expected.

across side, these that's that low be the CapEx be to expectations really durable Board. are new, the true in the built they're and CapEx and new They're almost houses. will On playing

and a we expense So side, CapEx and seeing the as out from perspective, on well. and benefits speed occupancy turns we're And as then playing expected. profile it's nice there

Operator

Goldsmith question next Michael is from Our with UBS.

Michael Goldsmith

the last The normal. think But for anything you into that as changed we And Or how demand do in that but does what have X should move and have here, years profile? benchmark been like? end XXXX normal from as rent of looks changes a the year? you seen impact see about how the factors we macro good spreads

Bryan Smith

the both those before, the in perspective. has an the I it very opening great raised growth been remarks. Yes, raised. And bar 'XX, Bryan. return what we're perspective to from the have we similar Michael, talking this performed 'XX, looked looks most 'XX in historical rate with I that last different, at when about except talked like we're my XXXX about looking to a bar is would has seasonality now, that a question. been how That's been curve period. we're from comparing years averages, little occupancy the But a X seasonal The and seeing to thing say. And is interesting

things. And of of result different a I think that's number a

the industry of coming what that's providing First, during an is and that different institutions on to finally prior I resident appreciated. And single-family period. could in you focus in think value a I where being There COVID find is that than the the real believe stay, was the to experience very acceleration here that proposition rental the experience.

in fundamental been So performance a very have our played Migration change patterns there's there. into nicely portfolio. better

perform the are way us things to are of there we a pre-pandemic. number expect relative So to macro that change helping

Michael Goldsmith

sounds I don't but it is words that you your not like want believe and to in temporary, structural mouth, put correct? that,

Bryan Smith

value improvements execution proposition. had believe that's appreciation improvements in case. We've in and the I for Yes, that

Michael Goldsmith

as changes you to the back in seeing or move-outs increases signing rent follow-up around any new last question, in consumer And leases have pushing you more seen several sensitivity Are a they due increases? Are months? on more behavior? price rent

Bryan Smith

Yes.

look 'XX applicants the as to is way homes in for more easiest 'XX the health of were at that incomes, the than versus We've think the they applying coming I example, an it QX the for. increase rents in. seen

So there's really good help there.

much really so health that The our story continuing. there's demand product is for is

pre-pandemic. you retention Keep about terms pre-pandemic In the the negotiating more that than have before, if existing our of in in between of today they way and where the of difference I bell up that past, improvements, at look in mind talked residents the curve. terms from it movement is was

residents at are increased a have So had they their the though these even more past. in higher than existing renewing rents rate

Operator

Stanley. next is Our Kramer from question Morgan Adam with

Adam Kramer

kind of on to extent Wanted the of sense kind homes right? disposition of to ask you the that's market. a the Are kind of Obviously, selling you're buyers, the are end right? users, selling it, that on tight kind the to who again, you for end get homes, side. MLS When a

the interested learn what's like kind to going institutions on on Are what's So it there. just subsequently we about you side. of housing disposition to about, happening rent other out market selling there mom-and-pops given Are hear in to maybe be homes? the seems good opportunities who the will

David Singelyn

Dave. and agree when operators, selling demand other Today, managers premise. MLS the seen past. Yes, the users on from than vacant. would in end We're significantly your we less entirely Adam, the is I with they're to have it's Yes, today selling homes other the

for demand demand with very makes strong. the But the lack the supply of the MLS very, on homes

at our process. selling we're that We're price, market them asking today. prices XX% mid-Xs of time on is identified yielding at we asset The selling that short. through We are are selling homes management and

a where in very very, a it's so of we source keep And expenses want And recycling portfolio of capital. future. to the attractive good them the

Adam Kramer

follow-up. a just maybe then And

peer of getting have people's into yours about reported heard guys quarters other point. something it's know I that third-party a kind you what you running that management the high of think it's haven't into is few talked of and it's of been guys just in I although that assets. development from it's past, kind about at kind of probably looking widely if look on not portfolio, the at you Wondering in maybe at of a list. looking the if or you are something maybe this kind obviously something would it internal

David Singelyn

Adam, looked we have Yes. this. at

Initially, you of a I go an couple the If evaluation back of It was that think there very party was bit going committing third on much thought generate moat. talk very, years, lot balance was little be income we of a to that we to these without incremental calls the it our evaluating program about compelling. about talked to was of program. a sheet able

evaluated more X years. it for we So than

cost expecting There of have going this, We the to we institutional getting lot And than owners into which impact produce is of part, the were money. core distractions. distractions of the significant found concern the they were manage the owners really expectations. unique desired. reporting our that lower And what of relationships. created program. a we tested with that that a where And were what number that, all we it in incremental is was make they And we would had to business, the those different margins unique were amount

time, is a that pursuing. this this with the we not decision, limited So we platform at the synergies distractions, the are made and

Operator

is with from Street. Our Alan Green Peterson next question

Alan Peterson

year any the expenses. But year you those a you you controllables tax if give those can 'XX are well? you as seeing the over anticipate guys benefiting to mentioned appeals expenses benefit from sense next appeals and filed of Chris, if tax the course that you're from us any into or benefit on

Christopher Lau

were property likely tax bills rate year get be officially to add, to continue read-through terms year, when to year going relief them Yes. reductions even we this filed of Sure, hand at a extent months continues point, individual appeals. a We've Texas of year. relief this yet. a expecting, watching place talked just Texas. And by growth. of very at level the this this of as see volume we we're tax about through that as that we've in that are And would next in couple were expect to in see be did us. offset the the been we potentially But higher unchanged about at positive be tax just the good we of of values value our the a At component in We've in moderation heavy were back which year's year And ballpark over next is into all another as something home likely start much next as in fact values and of tax update have for is property closely property post-appeal being pretty see then Alan. process. we over now Texas, XX,XXX this back The point, appeals potentially of is, so, originally outlook point, Not important or though the this the just through those of X% midpoint. And on property we this into that appeals contemplating rate full the in the the piece number to in appeals I we those. past those than latest going year of quarters. Texas, released are to heard be reductions we has at in benefit push, translating been we the think expecting, a

Alan Peterson

maybe Understood. topline Appreciate the And performance your that the that. to shifting are over and in markets. just you seeing guys

like the the can for driving some Southeast. what's San Antonio, of Bryan, weaker bit give little us sense a you is for Vegas Southwest in Las than or a example? underperformance markets

Bryan Smith

Thanks, Alan. Yes.

of markets. I in supply there's comes temporary in We kind a for top the of way homes, increase at to Antonio well-located of the the look San list. think to been this increased be it the some nature. is especially in easiest see few to supply, our

nicely rebounded pullback we've October. bit Las Vegas, of in growth, a rent little seen a in has occupancy on Specifically but

would Vegas for So to bit a we're healthy California patterns to out really that with for reversal I already seeing of come. of migration there. be long time little very Las a expect a

David Singelyn

Alan, Yes. it's Dave.

add a of is This This a points. something XXXX. issue is couple absorption just new short-term me is that Let additional not to on supply.

and of Charlotte. this as seen short seen as migration And already very growth and back strong, fundamentals. The on. it or in have is of very absorbed, very cities in trends soon come both very, times homes especially requiring couple to And fundamentals those housing. of we have strong term of very, We've those still population job they're with Phoenix. to We growth it's gone as underlying all a respect

looking are pretty up as Las seen much We mentioned, Vegas at, term. have mind, my already, in we what picked is get Bryan absorption in in October. very So short that

Operator

question next Tricarico with Scotiabank. Daniel from is Our

Daniel Tricarico

mentioned capital growth. you the pipeline as to development governor Dave,

bit So I more on sources a specific wanted be to uses. capital and

fund funding debt be likely Next next cash development the net to there's year, after flow between gap of another top to $X of around year. dividend dispositions maturities a plus billion on

slowing is your issue new you're a starts? a reprieve looking concentration it in Is unsecured? patient or JVs maybe to heavier staying even comfortable for to So of additional say it thoughts there? within bit fair Any rates a

David Singelyn

Yes.

your us for very better than capital of occur, our really structure -- tailwind on in It that for all use to the with expectations JV to as balance going is agree JVs, The on XXXX, us. very, rates. of any today part important they setting in of is allocate If not a we're have decline properties much maybe in a are things. seen I us. you So One sheet. it's allows a in program be

have to the we so ability bifurcate them. And

little like that's a capital. going into of they look significantly debt, to up. recycled a majority creating change. be And little a to incremental the bit As reliance would of reliance ramp capital the bit but we not program from and the capital the the expect next will XXXX capital be on to standpoint. we cost ability And it I go if year, unless the have Maybe of do, retained

Daniel Tricarico

trade-off and if to portfolio could an would you you And for the opportunity set deals been in in relation Have that development to Great. where pipeline? the you comment arise underwriting then any opportunity guys view the how market? on

David Singelyn

few We've a underwritten portfolios. few a seen Yes. portfolios. We've

we ones I age indicated number of earlier, to also homebuilders to And it's and That's we want These located to of building quality is the be first where the And in It's start the property, think located the properties. areas. market parts of is of the of the that with ability property. But development I our have have traded. build in sell. location characteristics better the program the needs to the are things. the the the real -- quality aware larger are as of we're of actually the better benefit the a it that assets.

well we're higher-quality really the having -- fit haven't seen through a a long So And have of portfolio our that term. -- building we into plan. focus asset that have management portfolios we

Operator

next with question Our is from KeyBanc Wurschmidt Capital Markets. Austin

Austin Wurschmidt

leasing move With season, loss-to-lease strong guess, continue drive guess I leasing slowdown, XXXX? and to I should the early as that year power I improve into able to peak absent what your change, -- for right potential really pricing historical the holding you in season, above trends broad you the next guess, lease to growth macro have you And really now? late rate into would any be

Bryan Smith

Austin. Thanks, Yes.

a pretty in year. on are us We season. next historical fully we that is that translate this the for point, finishing about mid-January. next February strong lot uptick on loss-to-lease, any see into a the plan year, number at Our major a confidence lot real talked and a nice affordability our continue the spring That of us really renting year into factors into being of supply and around simple. fact being averages. changes in starts rate demand that prepared able this Generally, into strength don't we XX% going plus to the buying of plus better that leasing plan see be confidence give markets gives we and than do between I to gap March. There to should

Austin Wurschmidt

could be X% back year you So X% the things start loss-to-lease it into think as to next early seems to to ramp. that fair

from I even are it strong what I turnover your over relative get to then, more revisit, further that then there recently? And to you can are down think do the know pre-pandemic, Bryan, on drive also And retention biggest year-over-year. But comment Just you up have time one, is that. though current turnover move-outs slightly about that you you've could internally you you two, could think any wanted I levels? comments And maybe was to targets had share? the

Bryan Smith

sure, Austin. Yes,

But comments I think, call. between points. teams were made improve is think next XXXX Retention, compare and year. and delinquency to the major land retention have Resident it's really year, a remember, comparison you our period. you ways were the are by little one It's early to experience. it noise major We've last We'll little operationally, on looking retention improved to of point for XXX in nice investment. happened focal color better what's the tell resolution if are differences a seen a I improvement. When going you, on the exactly improving our from there of to resident the bit COVID I next with where for of pre-pandemic. rates And constantly there's

optimistic room So I'm that there's there.

Operator

Our with Lederman & next is from Jesse Zelman Associates. question

Jesse Lederman

quarter. Congrats strong on the

Your disposition been has your highest pace ever. this year

And Of capital. those with and given maybe associated course, you costs feel with high source how puts dispositions? about costs the it's little attractive takes you different of comfortably what bit of friction talk going an just are. Can a about that talk

David Singelyn

Yes.

in XXX at be at as Dave. you're quarter. itself. our strong. the X,XXX third year our those continues -- year end So quarter we're of Jesse, dispositions, it's On we're third the be in right. going About is to XXX% of history This highest the would October

to don't, look our into existing and years, will of use And land, look those that that. it whether properties data into other go go that is noted category. analysis at all and disposition our to the will future properties continue we long-term or we at that it our meet As criteria, be we should

We net seller in actually year. been this land are we've of a --

in And thing, 'XX, of but So go disposition that in I get there homes will as more 'XX. that securitizations candidates importantly maybe into the our 'XX, program. I screen those getting probably will securitization for will of some as to late practical -- they're not are our after 'XX we today add as be we want unencumbered. one all will to is rightsize unencumbered one of refinanced benefits sell the homes

Jesse Lederman

helpful. about So about And bit of averages. to takes that occupancy understand think and growth rent you're very XX.X% your still occupancy. And you new pre-COVID question Are above next of you you a I kind at and higher you a levels. occupancy That's talk October. looking But that made is growth? normal versus My occupancy the on than for now above can is keep some saying think rent pre-COVID puts how you comments XX%?

you Just you okay growth. and with down the how levels? the rent to between trade-off pre-COVID it closer trying to trending Are occupancy view understand

Bryan Smith

This and Yes. and Thanks, good We're And entire on Bryan. the the management us are the occupancy revenue line. Jesse. revenue is is focused last interplay today. there benefiting in optimizing think or made We've X over improvements rate. really obviously X I years

single-family a to The as position is norm is that as proposition year. is fantastic. and As value going I on The sector expectation said demand next backdrop our new be into a there been. ever going is it's in good be before, strong my We'll expectation -- occupancy.

strong growth. have we rent continued expectations So on good

Operator

final from question is Research. with Our Keegan Carl Wolfe

Keegan Carl

your given think of clear validated. peers, done your they've build-to-rent recently hires, what with I one is it's that So platform

but bit what know delivered that over have curious, returns like touched look returns, little last kind what can several in relative a your earlier you buy how just MLS on expectations? trending typically Just would how the the the been you you on guide I of homes they've the you'd versus developments a get And basis? stabilized on much been then to additional and years yield on

David Singelyn

Dave. is this Well,

and I second it as opportunity. we're is and of in Xs acquisition that and opportunities important that's that significantly difficult there buy today, think meet yields. different, time the any take the opportunities the And in difference the said is me part, very any having Let I while seeing finding

Our approaching development is Xs. the program

is properties mind, between XXX of build them the that got you've that piece. benefit So It the building. X, of different that like we're the are it of the is long we homebuilders. it It's greater think program, because is term. a because going It quality one we own my It's locations long I term. are much have the in basis plus than of the the and don't just historically. But we seen the points development objective a not to a homebuilder criticism we properties national building

all higher-quality It's with about durability the the materials. building of we're So assets.

that has a selection the process. the the It important. is how and be I and to the that program I you program think It is so execution like control program, significant development you the -- development in very And design benefits. execute site has the

X others, a of to I program. an I And platform, been that the synergies as really comment of but it's you number attempting believe it operating very so successful don't do without a number a need people standalone necessarily having build-to-rent on saw into acknowledged believe of I and to the ago get times. is We a make successful. years it

program. and So of the benefits development I a quality the think other people acknowledge

Keegan Carl

I with local through is us election SFR walk I'm around differentiates have then it. And you an it's year, that into and how curious, work some proposition can think of big assume just heading platform to then how going fair value you? you and communicate we're to to SFR your picture, governments noise development

David Singelyn

ground the it's Yes. the I'd experienced where maybe various And There And are that the misconceptions of made. only true single-family affairs. on level -- a sure in one. team local affairs. the government that. not it's have. But we think by all is we about I of say, decisions government are XXX% I'm is rentals, tenants desire politicians. benefits are dedicated all education a the the and put the the at being that talking have about forth game And that's

high-quality a to talk of about it's it's different have get housing give affordability, problem there, at enough we we building day, don't instances, So the are cetera? lot truly, game. And can of in a It's team fact and doing that shortage. your we isn't but in truly get country. where is to in end have ability permits. more that we housing the in And ground this is you this the the housing And the are what a we having et real

provide the lot But can can that being themselves. we permits about, housing. the provide building housing, solve that won't get unless a concerns I necessary resolve themselves and talked of shortage adequate if resolve think they are housing the we So to we the are

Operator

comments. We reached the would have our I turn the closing call over question-and-answer to session. for end like management to of

David Singelyn

operator. of your you, to Thank you And time thank Yes. today. you, all for

guess, next on to will We next year our you I again, talk earnings call.

good have Have So a day. good weekend. a

Operator

will This today's conference. you. conclude Thank

disconnect participation. time, and may your you at this for lines your You thank

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