JCAP - Earnings call transcript Q1 2019

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Operator

Greetings and welcome to the Jernigan Capital First Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. President Finance. Vice Senior Corak, of Corporate David Please sir. go ahead,

David Corak

Vice and to morning, opened following name Capital X, Finance. XXXX. Senior participants Thursday, first be time, in being Good conference is of Jernigan prepared is management's Today's Corak, At My quarter welcome will May call. questions listen-only the remarks. mode. everyone, for recorded, floor Corporate your conference XXXX David all this President are earnings The

and with Private please answers Forward-Looking are encourage XXXX begin, release. non-GAAP risks that our Reform Laws. remember could in contained call materially in statements SEC, Securities of this may GAAP by prepared remarks review. press company's These Actual to Act Federal your our company's we contain the by differ is the to forward-looking included due Before the by and from Statements cautionary the management's questions which business. SEC uncertainties Securities of defined to stated the qualified on with as statements measures those forward-looking other provided associated implied results reconciliation earnings we in latest and filings the Litigation the A you or financial statements to

You audio our this conference SEC website can call at reports our release webcast find on press and replay of www.jernigancapital.com.

Officer; Dean? Executive In over I'll addition Investment to Luttrell, President Good, Mr. to Kelly John Chairman; Jernigan, Jonathan turn we the CEO; President now call Dean myself, floor and Chief and on Senior have the Perry, and Jernigan. today CFO. Vice

Dean Jernigan

morning David. to Good Thanks, everyone.

this the We've This and like so this sector the far in the situation. far. to of friend years see travel for in the a But tends tracking to always so fact lot our our each it up pleased getting results have reported I of who ends quarter to a with thanks by time And being weakest the company. builds of on year due kind to year. been at that being I'm found for interested now. I'll QX. morning necessary. present so us results quarter first some but of start First of the little in looking be like good start had off unusual of year. just the comes early this for quarter QX of I'd same of quarter for that QX our was morning. back I've the this an up for of still you is and thanks QX best schedules QX ahead joining some apology us, year. some, reports all,

to be lot they platform four right are let companies I and customers; Those platforms think. exceptionally their a funnel to of up, over able very Power years. me rent last about are powerful unit. of talk until these funnel into times now history of the a well heard have normal I market But headed out if there has we basis. any much year. course, - power for of That in these the normal new we're a hitting a a aren't on you would, because we're so times. think of lot But So of think platforms, I weekly and out attract is them the that indication, good get do large them these the not products be as functioning the

this XX look gain I in there in starting sale like far I development the is think for quarter. Capital country. talk be there, and seen silver a this and being gain. sooner Jernigan years, to said, going for around in the XX% And a I short-term QX, have storage sector, going year. some presenting large then forward last were good So, how couple later. greater telling estimates to want heard cycle, we yes, silver of think that the of development are John how than will I've year, cycle this them. as and what ranging built in we've this development little you've going the as many bit short-term good facilities a from want than to in and markets. who lining. about are And a Kelly, some us lot opportunity our about are the built Jonathan cycle. be a about you done But and going got also talk our providers for in we've And the There more heard going to be data rather to specifically, this job speak long-term this by to that us properties built, but quarter are pleased is at the with And the where, the results I pain. way to the least here And talk always I top do. that some is be about is mean us to always that three facilities thousands X,XXX lining start At itself maybe of to cycle the say some that QX those being pain, results out

capital large partnered storage Jernigan this in demographics, to managed, with third-party good Capital, with companies for Generation or buildings like [realm] say most lining vertical access as most have a V in are well able [ph] all the anyway I would well is are And companies built. were built be that management. many me almost facilities located, the to opportunity well good to So for to silver who huge buy have

capital. of starting properties in to access the those And this I have into It's lining. that's so, And opportunity. consolidation year, new silver a huge to these been what Gen that's this happening have year. who development see big year, V next that following the built be That's companies good cycle going

sure very excited to Jernigan very, are so similar very well, look about there to. forward that as we're our I'm with excited friends something So capital Capital out and at other

those of the comment can people people is job. out Capital out get one, their let this in one us to last do to step is Jernigan I recruiting is to three recruit recruit is empower join to step two to their then I beginning endeavor. their do and set sometimes way is smartest out job. Just something that hardest those step go the And And them to that people do step and very and the of at

answered is seriously it it's product. that It weren't with future. say] you that really say about outstanding we that this, and speaks is product strong to been since about the talk been difficult. The to and really morning, meet calls like has [ph] talk on basis this companies a question. public been this call going the So [went joy. it to product strong. has guys. I've questions different on after of every a the I'm answer the in involved The such has been And my I've in weren't been product - difficult. is with quarterly the took is this XXXX, you that so an proud years three quarterly of so I've just analyst decided last The be It XX to fun results

the me their I'm these forward, today. call out with way them the But take for empowered. stay away. starts It let it that, I'll rest to you, be are going this with with and the I'm So do on of say going today call of people on the on getting John, call, job.

John Good

of first XXXX JCAP's Dean, quarter good us. quarter for was morning, and everyone. Thanks, very strong another

financial that to addition to In beat results posting excellent we what expectations. our be believe

We XXXX made investment toward excellent also meeting progress our guidance.

prevailing Our development this investments number interests acquire primary two two, done at developer into just that our originate development cap interest rates. we've properties. with with spreads Today, existing healthy in goals first, year down to underserved five favorable broken prices; of in investment opportunistically in the to new can be markets the investments developer acquisition categories: and over

balance with joint three we've One ROFRs. were Heitman venture. our interest development and four sheet within was on of profits investments And and originated new which

projects with joint what acquired align ownership which properties. program, and our profits involves call development the acquisitions, having end the venture are either in have we development in of of five partner XX we first we as interest With of in XX core Refusal that the the full of quarter, the Right our First now financed of

rental to we continue to are area. and developers buyout see closed expect opportunities into move three of that upcoming we've this The development the this We all new as half New season. interest of properties metropolitan York especially the the year in to we complete second finance, year as projects the projects

York are the that market and looking area we're we but before, fewer maintaining like on levels intend this development XXXX, substantially committed we've As example close at spreads deals is XXXX the deals national good in than the that a done average development to JCAP New density that less the for. thus those the type seek yield We to we've deals in of far cycle. locales high that said is of attractive than year that in of are supply

continues to existing Our portfolio nicely. mature

open As of the end XX for investments of now completed business. are our of and March, XX

the rental summer occupancy time and added the occupancy from been have of that our an end year through basis We're XXX points properties this and one have slow historically have the that occupancy ahead past fourth basis is season, December for approximately XX of average initial leasing at open to the quarter weekend. of properties since least ahead of full XXX busy end been Our the to season. points of the underwriting added of for of during pleased running open meaningfully

budget, wholly-owned as Additionally, expectations by quarter exceeded occupancy. and this both outperformed our facilities driven our rate eight revenues

quarters deliveries now, REITs time picked for MSAs, XX the us, supply in MSAs. follow. we impact heard which you've are operating that and other have major performance MSAs We for say believe that continue some most As top in the new will and is, to several new

reasonable a However, normalcy period until return will passed. is absorption not

investment delivered, our not while the XX% full of not Looking at experienced our as properties properties development important yet development of portfolios remember season. or have investment yet have in that in rental our third specifically

mature in In asset our rental seen fact seasons. the full is portfolio only two most

the So tend delivered. nature of by lease-up that have especially the those been just market rates these assets offer to process, below

a while outperform assets this rate from of points continue markets and progress basis on occupancy. majority assets the XXX growth make all our of quarter gaining standpoint, However, the respective rate approximately our their to

pressures operators, hitting our is targets continue we institutional While new for a portfolio. headwind we're rate we stabilize all than the believe supply owner as the will subside, occupancy to

We high very for well confidence have many high degree in that third-party and we quality well we we've will to very are years assimilated a of perform confident located have a managers, that excellent them portfolio come.

and And timing in and process financial Since very changed of internalization Kelly internalization. I'll have Finally, early that intend process for to process XXXX, the our we've timing for discuss the we That's with terms not all prepared it the and briefly remarks. over and turn to touch to in I'll on me to that, follow IPO timing disclosed results. letter. the

Kelly Luttrell

above share first earnings end provide quarterly in John. reported expectations high are Good some noteworthy came color. our of for for we which everybody. of quarter share Overall But above of both few are there items. night, several guidance. I'll morning, items earnings on the line our results you, $X.XX, Thank the quarter, and per our $X.XX additional Last adjusted per which of

and favorable value movements midpoint timing and construction certain of range. This fair in came along of deliveries million $X.X above the than rates by primarily quarter was for our with progress. interest better expected of the driven spreads First,

income assets our as revenues midpoint And above guidance. interest came in than NOI were wholly-owned expected. our high-end higher we the of exceeded Second, the on

for timing and recognize in XX% expected came activities. than able from about development were and to G&A amount certain cash savings business professional as our the the of lower we Lastly, quarter, some fees

value the at fair of have guidance million would and been been foregoing, the range. midpoint the substantially above $X EPS our basis midpoint. On would even Quarterly have adjusted EPS our a of

timing and on since in the quarter. our we the much of that they've rates Overall, significantly initial deliveries construction track already range drop ago. In for the provided two backdrop terms hasn't of decreased year changed of guidance, our interest months and recovered since the although some QX, remain progress of end

As year. the fair are accretion expecting total for of such, million to million value in still $XX full we $XX

we along results of pace and give in investment that our range through full provided both for And EPS have us confidence range guidance with our February. guidance Additionally, both we such, the as reaffirmed April, activity and EPS. adjusted portfolio the year

which at ATM to the book a quarter, was share. average an issued of our stock balance year-end value $X.X of Turning the share price sheet. million per common $XX.XX, under to We XX.X% program during our premium

in uses dry prepared us the to drawn was facility to net XX% to current company, December and future XX% over capital at best funding new we X% notably, value adds range as extended for with quarter-end. the for at debt for debt assets. have powder end growth. prudently funding I gross with all us that We we've will the of in our year. activities Q&A. in position million assets have obligations back since inception, given our we'll These have also table to And ample formal our leverage the it upsized And turn capital sources our match capital our That's measured continue quarter. the of now for capital in $XX credit the our reflects well of of activities supplement, the our our and to gross utilized of and our at stood and to And by of the source maintain fund remarks. commitments levels we that as seek continue next to done that

Operator

Thank Instructions] first [Operator coming Our session. be conducting from from Raymond a James. is Hughes question-and-answer today Jonathan you. We'll now question

line now live. is Your

Jonathan Hughes

good everyone. Hey, morning,

expectations On you're of about investment end of But way year of distressed upon sense they up if trying out was there. activity pick talked of year the just that haven't us seen operators the last on update I one the predicated seeing this larger into I call your deals. and you back-half flow curious about the of believe the Jonathan page, already a to disappointment investment said some for transaction through or yet, those deal But guidance. yesterday get could to to half the think a volume activity the

Jonathan Perry

our second be acquisitions our really is looking our to of the this that piece with it on do when group. those developers. I sync is, Jonathan, And of you think call I to deal are and to programmatic And have it's One as course half we're two flow, rental with back do have think we're when acquiring we dozen different months. captive deals. cycle would suggested. with to have looking will what are about totally up markets in stage really programmatic so season. a I the over would perfectly the with we're And last can we the accelerate number then, you product continue development that put in about once working the degree - this at pipeline, interests. our that the the I Yeah, We're we to would The buckets. the aligned develop you for. front. of their type core we're conversations group we at think who conversations would XXXX we say on those partners side further conversations about - stage, continue then the even of ramped get the expect those six some And of

think to a year, pipeline up see our of - going into ramp that XXXX. this internal that you're from opportunities in present I do going themselves the for some So end

at developed As it to cycle majority assets market have distressed any sellers developed wide relates maybe have that And I that visibility out a that this do not and and longer bit think look particular I general, you rate motivated were the deals the the it are the stage you of developers Maybe to the or during horizon, think not in. in quite sold. to were longer seen I don't when the expectations degree. little meeting of took you to your be ground. get have you're permitting lease-up your well. get you're Maybe the bit still a to to at the of took going little process it out close CO. do time

think a run the hitting double. and hitting between a candidly I difference it's developer a home maybe

fine. just lot see will distress. the developers that I think don't So expect to do of I a

they're motivated. I just be to going think

Jonathan Hughes

this And But rate question obviously, that still the for are Okay. guidance there But well that quarter. guidance, Kelly, lot into number. not changed. past fair above to a that on compressing quantify hoping maybe and you was is a I the know income was of variables then, sensitivity could That's spreads. helpful. but your maybe value go

to million what the $XX million be rates from fair $XX XX So if say, would compress, basis spreads income value points guidance and today?

Kelly Luttrell

that All footnotes to reports. Good right. Jonathan. Hey, in and quarterly disclosure include annual we Yeah, that our morning.

for it XX sensitize we sensitivity, that and bps. so, XX And

million point basis And about million - so, $X it's XX and for $X swing. for XX XX for or

interest that and into I other we to as rate several looking can that movements since environment mentioned, some extrapolate And to end. the for at seen. rates current factors that go that not were as up So whether and go guidance have the you there think seen year, take assessment. And our adjust quarter and you that we've or you are

felt we time range is. best where at to So that it leave it's this

Jonathan Hughes

for me, free four okay. enjoy Dean. Hopefully, Yeah, past can that's on right, you your some over it calls. time. Thanks for the All insights these more years

Dean Jernigan

Okay, you. Thank Jonathan.

Operator

Thank you.

Our next FBR. from question from Riley coming is B Hayes Tim

Your now live. line is

Tim Hayes

five even than this you morning, for everyone. pace going good you sounds acquisitions And of more like at My see it closed to my year. start opportunities questions. first interest developer to months great the one, Thanks six today. be Hey, seeing from taking you're quarter now

currently look by many candidates the And how for portfolio? do see the you on how assets becoming of then, candidates many end your today, when prime portfolio So believe are at year? you the take you do

John Good

largely and hard is to the Hi, XX it's lease-up, and trend the get the It's answer, question some from XX when good question. today because their a between for thanks It's the of we We John, developers is this to and start period somewhere control that a in have has in Tim. developers. month been, start to And like hear that conversations. projects feel question.

look the as it I guess, balance XX forward. acquisition over assets we that this candidates going So you at of prospective have as still we have, year,

said balance as yet. full we that motivated leasing of not of sell. full of to in these Over enough is one seen even one developers the it's year, season possible And call, for haven't become earlier this season - lot to the leasing assets XX% our

leading And on-balance bought could then, portfolio. by. goes the that X, little could digits sheet that's in of we course, become XXXX. end So them our into opportunities and more a X, XXXX. would and pick pace we I say perhaps comes opportunities anticipation this XXXX move there to of, be few in XXXX to we the years. number. is hard out is the year, ripe in more so deliveries into those. some we absent single That's only will and It's and see some think maybe of exceptional going have to that the up portfolio year mature a the that venture a joint we've that real But XXXX advantage in And a X the to seeing I choose additional of have and asset up then, as pinpoint that XXXX And only XX we few see, being as we big more acquire year number left. the portfolio, opportunity portfolio we are this opportunity take likely that of XXXX

Tim Hayes

what to in for your this it. associated And there appreciate is there a one And that driving it Kelly, because your project modify hard that loan the maybe number, income expected just the development picking embedded are this terms you range. beat some - on taking you're good were guidance? borrowers you fees touch - you in having beat some than seeing extend see next maybe that, can because they're your fees time that of And get touch Kelly. if is finding longer in later need guidance having lease interest to high-end and cycle? of John. or were on led that can then Got are do developers up potentially we or up a mod as all insight. from the Is or high-end assets I That's durations? to their

Kelly Luttrell

Hey, this in fee recognizing have our agreement. investment that we some of income Tim, to interest of We income great related modifications quarter our did certain some question. are

the $XXX,XXX more And expect This we quarter those of recognition those, that occurred. of see circumstances very was fees. recognize fees the some quarter. we It's amount facts timing that to transaction it about we will of and that and this specific

John those. little give think I a to of bit insights some to driving more the factors wanted

John Good

projects about Yeah, These for we Developers the lifecycle a land. an to And And on delays to they get have process. an of construction piece of through we and these things of start along lot nature. projects. and about talked the go projects have all projects call, entitlement then, design and permitted. they everybody a that out have then, talked and those with Tim, idea to

modifications, project project. add when stabilization, decision you will, date underwrite many a either it's year, sometime a a So that principal you've or more come project, get - sometimes maturity you're of the loans we Change to and a target and have we indicates even those made to amount. we of that when in modification some toward reserves, investment the extend our lease-up sometimes have made in other And it these investment form there you're delays to amount and our start reserve on receive the when on before about, to calculations calculations cases necessary certain maybe a you fee. year backend project these instead occasionally which path the that half, underwriting ready increased a to the modify to date, a and

at source income, it's it's recurring a - somewhat unpredictable. a of - this it's point, So

contained some little quarter guidance it, of that don't projects you'll seeing and in know, every bit be this this You a was the in But we're range. not which in that can't because resulted you model modifying. interest additional original quarter income

Tim Hayes

hop back in before And then helpful. Great. Okay. the last I my queue. one That's

just maybe you're at interested on characteristics for of and/or today most are most maybe of the are in sticking MSA? invest what growth expand footprint some looking If the you which and existing you then supply maybe point the per it those look square guys or and markets desirable? economic growth it you to from? Is storage pipeline the is markets the want foot, in, are you to of population away could As

Jonathan Perry

Yeah. I - this is Jonathan.

its to those starts submarkets you particular development storage per real focused with also on obviously think, host a drivers, cetera. the square very could the relative MSA the the of cetera. start you XX an factors the based top And look top number be MSA demographics MSAs job a additional XX which creations, and funding - at generally, you in of submarkets. population that But its proximity itself, on an those look MSA to XX are access And the of foot to and and I and vitality in to And going universities you et at location and with is retail, et MSA, of in the it once on you estate, the - would vitality. capita, growth, is with the you add which upon rack demand best extensively within stack supply it's to location really key in lead to then MSAs. and east market

XX But take back subset MSAs. to the So a at site that top it question, we there and it immediate host top the look be to to against the are the whenever your would variables are of XX top evaluating selection. top a XX, of we sites

Tim Hayes

have - those, Okay. of markets we've Yeah. if list moving know you some common down or And - that are some that heard That's about the being some then maybe list? today are that just and and are curious, are the then of there moving any response, markets that liking a there if helpful. common your was up just versus just but part these talking I more

John Good

three California, to groundwork I takes can we country, you you'll extent - we Coastal There New square committed most a before, in per served. area, the well that you is projects to have to the and that or things way there we've a foot yields outperform, When opportunities, continued the are been so continue long XX, done. you're your work get finally recent capita markets are West have love months there. oftentimes while to that you advance, to completed I that York to that get across mentioned laid think as to it starting think - population find country think the out in Greater New - the you The the market. present about people small in spaces. been takes talk drivers when about you But lowest the too living there, in be demand about much think the has about out densities, up York. - deliveries the and think see Coast And time some just don't the the XX renters, the

are characteristics York demand New the Just exceptional. in

a continue been like we that, that challenged to some we've for I talking markets think, So then ones more while. market. as they're the And about

is headwinds. challenges. are know there. Raleigh, have pretty And think in exposure has significant Austin, You have Nashville. there there think, And the are market some I some Portland horizon experienced I there. Nashville, We on and the any But pretty some don't I that headwinds that

kind the little bit would So I the cycle late. or of challenged going would think be into Northwest, Pacific a

Tim Hayes

maybe from we've Okay. sneak aggregators making might of Coast read that trend on some that parcels But just because or the one West one new smaller land of And and markets. on in developers on just based are data I is a the your find if especially comments one noticed that sizes more too are to markets it's been wondering small but challenging kind markets if just for some strong you this spots for and so, or to build, have demand? case any assets? doors the you opened types up had And of that that other CRE have to in of be find if facility

John Good

Yeah. seen trend big way, I in understand it. that We a really haven't

don't you you one mean, that parcel, much on smaller land, a if benefits developing vertical, but if the think facilities. have obviously I to developing micro I of going are have as that's you're of

you're whole put on think focus stock in having of and a I lot pressure to rates.

So you're That be going I better be bet go would on your on to small. my rates you think caution right there. if only

We have not really seen it.

in bigger think cycle, earlier had a toward you building I the facilities. trend

come to XX,XXX historical accustomed you're be really have confidence to facility size net that we're it's a able think degree to you that to back XX,XXX of rentable, a which that high more at of is going size. a where to lease-up I

Tim Hayes

comments. the appreciate I Okay.

Operator

Thank you.

next Our question coming from Baird. is from R.J. Milligan

live. Your line now is

R.J. Milligan

Jonathan's to off, comments. miss them. valued want the years. echo on insight Dean, your we'll Thank comments the and you I over First always your sector We've for

Dean Jernigan

Hi. I pick so Well, call changing about number, happy to am self-storage. I my the not up to if telephone want talk am and telephone call. always you R.J.,

R.J. Milligan

I appreciate that.

this relative rents the development all and new the happened year, And like the look that three supply in with today's to assumptions online. pan to lease-up are be talk signing what timelines all city the underwriting far where going New of York coming which commitments, market? area. I'm So to both deals today about curious, you Can out just you're for

Jonathan Perry

facility side, lease-up but With to for Yeah. the timeline regard R.J., that this a market. you the depending assume just is particular traditional facility size Jonathan. on

fourth the being assume for three and typically And a that an And trailing occupancy to spotting going it rates standpoint. looking standpoint. deep that with expectations dive trailing from XX fully to make rental stabilize our seasons rates, as and rate over are and time, visible for of to the period relates used rental XX rate occupancy underwriting, to season into forecast rate formulating are We and to looking data. we trends taking market a stabilize

R.J. Milligan

joint activity plays venture interest. the talk And do in how bringing them of time? a then, you you longer over think Heitman lot joint balance obviously, on the assets venture time are looking up about - period helpful. holding the That's developer's those in Can to Or buying for you guys sheet? joint the Okay. of bring out venture you're

John Good

to developers of interest. time sometime earn scenario there try cut fund, have of the of was that the good - plan period, those going think good as balance to sale that in is come structure wish control Heitman a internal back, it longer developer In to going right co-investors large has indefinite question. the a to the The the at up properties with to in out. a as to in the with have whole they worst shorter are assets joint to a but are sheet in Heitman plays market, every them. fund the joint us I to on they the one right We a same a ROFRs that love before the just in balance them we answer that a said, pension few That's to when and how have that think in out. that us to their institutional, life And XX-XX to years, so And the buyout Heitman. venture sheet. to That's R.J. one case happened Yeah. remains to The how out. would the the on for joint own infinite largely the for that, I and of be it's Heitman. works I holding of next best with our buy But to sprite they case the would all property a large us, whole those Heitman ultimately be had effectively of that on proposal that. probably scenario, go period, these the not or things In development partner, that that's we of seen, our out. come deal - was on we negotiate have buy a for I

R.J. Milligan

right. guys. Got That's Thanks, it me. for it. All

Operator

you. Thank

is Our from KeyBanc from coming Thomas Markets. Capital question Todd next

Your now is line live.

Todd Thomas

on morning. Good function their this a all, the if and I'm thanks. lower cost looking of quite at at returns Hi, point space. continue well wondering you're sidelines maybe the accept the bit get capital in to lower financings to the markets decreased there's developers of capital fairly involved and the seeing cycle, of returns required

Just could on curious comment if if - you're that? you

John Good

traditional that storage think don't have lowered return I necessarily Todd, their Yes. developers expectations.

that you've XXX, a think developed in have I the self-storage cycle had do acquisition years to be XXX. this stabilized that for spread who would yield. target talked XXX developers multifamily, from closer a that's think multifamily to I and are we've it, about primarily over coming developing spreads

individuals space. that probably well that below done in think I be we've develop to spread to so you've traditionally the would seen number, And do closer which what

closer that So I self-storage. necessarily don't developers that what to know can that But sure not some spreads that I'm they're long to stay. we've to is I for the space, than meaning have multifamily developed traditionally in seen is confidently trend that here say a

Todd Thomas

few at lowered cap JCAP market And last that at requirements you in various all investments? think Has moved Okay. its the all have do rates return for months?

John Good

XXX came Yeah. better we that haven't this points into we're earlier at looking we a for what felt we spread expectations our around may cycle, cases. few think a stabilized cap Todd, were. we have basis I rates And in - deals, prevailing in over when all. done of than lowered We our

you've number the us as progressed, I deals think cycle we're seen of that the has significantly doing. reduce

out of yeah, that indicative we the to - still spread and deals set the a fact in to we history. in do, front yields that the so our I achieve think lot that that expect markets interested to down target have of we're that we end on hit continue that's investment of And the come

that. in the In certainly bit. on they moved yeah, little weigh down Jonathan terms that are cap rates, if they moved can And haven't anything, of indicators perhaps up. a

Jonathan Perry

particularly do months. about asset, compression seen of a you've that of lease-up. Yeah, XX last the I the the you flowing Todd, a majority opportunity core the cash flowing when in the being just there with opportunities think I early think set think that assets in cap for asset, for cash rates stages out in

I compressed a that lease-up whole arguably asset put assets rates not a it's be would on I'm is that basis bit the I Everyone XX sure think you compression, little points cap basis But there. think on XX in points, the have out lease-up. would and underwriting seen horizon. could have But say think I total, that you their probably a I seen that on be the differently lot yet more to And number that. than class.

Todd Thomas

at is expecting think current here that surfacing thinking as And the level. helpful. about what Seems later you like you're the balance to in bit curious to utilize the ATM That's here? sheet appetite a maintaining stock just to like how Okay. committed just begin about given trading, in you're more low equity the where leverage flow profile, are then, deal increased is the year, you the

John Good

projects have episodic to common is use somewhat the come feel ATM always bought the to when sales think do to - it's be free buying so down And a requires opportunities that we've opportunistically fund We to for - dozen as to where buy like existing of pay be credit out and out, ticket lot of those opportunities we developer those or that use we've them as the we've ATM take that the issuance actually the line our I can opportunity we'll best that. stock. for ready they And and always pass. can out I our arise. continues that ATM capital have and that over our of so we the our projects. developers Todd, shown ticket I think a existing to established we've not deals

make And and judiciously allocate makes shareholders. credit and the in most so, a sense those for between we'll funding continue ATM the that decisions facility to way

Todd Thomas

calls, since and to we'll miss just I right, then didn't leave All you here. Dean, out on Okay. lastly, want you entirely future

there in the is much with changed some still a anything operator the that Has environment, behavior much. because and implemented Are It pricing. been industry of didn't or of new promotional seem heavy better you in a teams, and little too still discounted too across players promotions discounts new to it's industry. There community perhaps lot said matter away number competition pricing And provided strategies data, a the larger changes to has but seeing always any all the general, around rent the management the that? technology gives You've at in time, on renters. your from view all?

Dean Jernigan

and with whatsoever. price you wonder Thanks, retailers rent why see change. got that seen at competitor. and month's our shows, we through other give and end another our still not do seriously. unfortunately, unfortunate. any When appreciate go to the XX% compare happen have find the - me, no them really They a It another the our the Frustrating of and I've not for of there are reason free and right you anything Todd. studies go with out funnel and one we tuck-in I question us that No, into Internet customers' we struggling. through it is

get give XX% to something can here off you, oh, Macy's to ready today. you for in You a I tell up woke pay another they and

they only stuff whole the apparently. to ready buying. wherever but goes storage, were you're you retailing in margin, XX% You pay price full with we're give of off the stuck the it ridiculous, there not It's That and profit world today. across is and prevalent, kind but

I'll go that I grave to with So, my have to guess, one.

Todd Thomas

thank you. right, All

Operator

to closing or like further Thank you. to turn session. end comments. question-and-answer any I'd reached of floor for the our We the management back over

John Good

getting quarter. Take support to always talk you for and the we'll and interest again questions everybody continued your quarter with you together next continued we you are the and and we good every very love your Thank interest and care. appreciate

Operator

Thank conclude you. teleconference. That today's does

participation at time your day. disconnect a and may line wonderful You thank have you We today. your this for

Jernigan Capital (JCAP) 2 May 192019 Q1 Earnings call transcript