Invitation Homes (INVH) 16 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Scott McLaughlin	IR
Dallas Tanner	President, CEO
Ernie Freedman	CFO
Charles Young	COO
Anthony Paolone	JP Morgan
Jeff Spector	Bank of America
Brad Heffern	RBC Capital Markets
Keegan Carl	Berenberg
Jade Rahmani	KBW
John Pawlowski	Green Street
Haendel St. Juste	Mizuho
Dennis McGill	Zelman & Associates
Sam Choe	Credit Suisse
Austin Wurschmidt	KeyBanc
Neil Malkin	Capital One

Call transcript

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Operator

Good morning and good afternoon and welcome to Invitation Homes Fourth Quarter 2021 Results Call. [Operator Instructions] I would now hand you over to Scott McLaughlin to begin. Scott, please go ahead when you are ready.

Scott McLaughlin

Good morning and welcome. I am here today from Invitation Homes with Dallas Tanner, our President and Chief Executive Officer; Charles Young, Chief Operating Officer; and Ernie Freedman, our Chief Financial Officer.

may information. fourth we release XXXX call supplemental and this reference quarter our earnings During was yesterday of document on www.invh.com. This issued the is closed Investor available and Relations section our at after website the market to uncertainties statements outcomes statements, relating the materially results, such which to statements differ liquidity are Certain include capital or resources, business, and of to make subject call future during indicated may that we those and actual forward-looking in our and statements. performance results could financial cause this other from risks non-historical any uncertainties We XX-K describe some in make time of our filings other annual these with Form risks on time. SEC from and to report we the XXXX and do so. not Homes expressly statements Invitation does to update forward-looking obligation and disclaims any financial also the certain during may call. discuss non-GAAP measures We

information to over You yesterday’s in turn release. measures, these regarding comparable most can GAAP the non-GAAP find Dallas. me the let measures including additional call With that, earnings to reconciliations

Dallas Tanner

in our rents for occupancy this past the is lifestyle. maintain the high that’s a to month of remarks seeing be And above quality leasing you on housing, thoughts XX% the from Scott. Thanks, and to today. over this with and of ahead. same-store year flexibility share our demand look entire the the To past continue morning of us focus also and level year XXXX, like this taken helped a functional In we start several highlights at year, with good quarter. average we’re to us living joining $X,XXX It’s strong for a I’d take also impressed this to market demand morning all my

thanks prior execution same-store end revenue share core expectations. the from of high to we to our our and deliver a per teams, XXXX FFO year. our increased growth NOI the year able were As at the full XX% of result, And

X%. an year beginning at bought quality and We few among During highest double offering roughly from homebuyers using like significant grade average the cap adding over mention three this $XXX,XXX and the to I’d investment size improve highlights earnings our maintenance additional our NAV. of by XXXX, by We a experience, guidance over the value past app homes, investments accretive scale. XXXX acquired control of on of original year. to industry cost and and pest and to We were continue our achieved technology, acquisition services with great believe those our our we the group, made peer basis of we ratings. both amenities our of an such which mobile other is pricing the introduction including of work as our services and residents that in on and rate

we launched ESG regards disclosures and scoring big We where improved and strides initiatives. to also two great with made our

the First, Spaces with spaces skilled encourages USA dedicated which of is and our our to supports which Green step our Program, improvement the stand out up within in And skills second, program trades. development community in markets. outdoor careers and partnership

Demographics years an is resident did to reach starting job it’s The now teams ahead. of in in our average edge solidly of So generation outstanding favor. millennial XXXX, to leading while age our the look XX remain time our old.

supply improved neighborhoods At pronounced are In role preference believe showing the of the play to it’s in more can flexibility lease migration are their and reasons solutions space southwest housing great to that helping so challenge our to schools, jobs, they a new better a along housing those and time, more the job US result the additional more around significant even market, we imperative to southeast, a and in housing contrast, choice. for addition, in with provide continue shifts We supply be Americans within variety and trends have and live challenges continues with household to many significant markets. transportation. access to to home in same Sunbelt. a By and bringing

offer me examples. two Let

our supply. to is commitment in invest new first The housing

we’ve chosen to on know, owner operator best lease family the and for single you As focus being housing. of

with which new when we announced us home additional to acquisition comes in home strategic it year, pipeline, building home we space. Pulte and growth. rather So for it’s better partner than the our best relationship product, builders with with building amplified new to believe our Last the Homes, directly gave opportunities future competing strategic them

builders where relationship, they that across home over year, we adjusted also eight staying were the location homes these our needed. of while existing are of our we’re with ground help addition on other contract end criteria to break At strongly X,XXX to In country important of on them working to in communities new for risk true return. build under new last and the markets

beginning future XXXX, accelerating in We in of expect homes new delivery and years. see to these

for to to commitment this with involves identify the expanding future date by example choose. lease opportunities buy they The it with month, to Pathway with this that attainable second homes. to is in offering choice. we a lead our more homeownership Pathway’s working venture home homeowners to directly more options the additional for and for the do aspiring we’re them make They that choice. mission purchase announced Earlier if at Pathway creates The opportunity home, first new opportunity investor a families.

helped their to resident program. first our lead partnership broaden investor families another offers look management in In Outside property to Pathway, goals third party the us achieve our that Pathway housing through our the opportunity of expertise. is addition being way we’ve

celebrate XXXX. in big XXXX, for program living residents, $XX we a home. Since reasons, we marks XXX that further together in mission over business, those leasing home housing homes we’ll to all lease providing we opportunity company in single our high XX quality with a of nearly strategic choosing to these representing homes milestone purchase. coast-to-coast years a professional this sale you XX launched in XX, On family a million our people of of hour When customer home. mission to April this days service, first offers for a did the was with change customer to innovative and forefront sales, identified week narrative on and model at house demographics. make That creating sold offering out a the concept almost residents the new started program we’ve built favorable a For a demand residing an not Invitation by exist. seven we of

We’ve that communities. in part pleased we’re home decade, renovations in nearly $X.X has our past narrative communities serve. this meaningful the important of that we been an in invested billion which our within impact During

for there volunteered today than XX,XXX associates company of also US they single their I’m While local the hours extremely strongly million care organizations peace practice time within highest proud our within those over to and Chief paid of our associates a of rentals. million volunteer the encourage. residents leasing a thank and of pass level of residents of gives last with thrive Officer. our XXX our our our can more care family With to residents communities you for in conclusion, communities; year lifestyle, homes, where In standard and to Operating about which service years where a households we genuine family help together. that I’ll it the alone, our location saying single we creating are mind XX,XXX Charles, of XX strong believe portfolio are expected quality of that and on XX about providing teams million unique to our delivered. by like is XX close curating I’d both

Charles Young

you Dallas. Thank

the year us helped finish fourth strong. results Our quarter

As results. ranges. believe level you mentioned and reported XX% NOI single same-store and our any continued of rental growth best throughout occupancy reflected guidance in Average is stayed at We operator resident revenue satisfaction the offer and the the this and resident at year both family our we highs. of of strong growth retention end their high operating service our

expense XX.X% was year-over-year with NOI in which year. me rate the increase a you net XXXX resident Same-store the in to increase average the through bad grew quarter occupancy Same-store Let quarter the revenues quarter growth debt full was in income monthly core basis XXX growth fourth consistent same-store fourth other X.X%. point in year of grew X.X%. XX.X% This of by prior details. our driven Average recoveries. NOI XX.X% brought walk X.X%, of improvement fourth and rental in

same-store operating expenses in net for resident core XXXX a the driven to in As partially continued by revenue in expense, and XX.X% personnel decline Fourth X.X%. XX.X% growth of full in expense, increase to same-store a result quarter year our increase offset a favorable same-store XXXX X.X% come was year-over-year recoveries. turnover fixed expense by X.X% increasing expectations

cover our favorable to continued fourth market the I’ll leasing which trends reflect and demand strong in quarter, conditions. Next,

year-over-year X%. was for rent Together drove up growth of and came rent basis quarter, Our renewal basis over XXX new points in XX.X% rent up blended XX.X% quarter. prior growth while points XX the at this lease growth

in strong XX%. continue XX.X% of remained and blended the occupancy points up above average year-over-year basis seeing results January rent also We’re with XXX growth

send our As of new and we residents. out each surveys the you to choices preferences know, quarter understand better our

Chief safer our after twice app our efficient. apartment living Dallas friendly home About And provides. residents certainly but you between privacy above maintenance to week mentioned few These Ernie, Financial performing listening an from XX% mobile the communication a single while Three are start pro tell a experience they when quarters learned We at process. their reopens. help home family of our feel may least working of house to and our and to Nearly are a good of we residents days services, none. as in our third second chose just really me work our many we home that proactive of pet this working of creating leasing is a maintain not to wanted Let excited teams single continue of we home our family now additional more residents’ seeking to residents what new I’m move family the the and to the half in with call Officer. new convenient residents maintenance family we help two because we they experience a order With convenience our than new a more care group momentum one quarter. free. Year. our residents a teams invented all, day the our the more resonant in have we make beginning of improve our service I’ll is by every past because home. New from the the make friendly are earlier, ways continue to just keep turn oriented strong worry year. the space homes and home working a office over plan that by lifestyle, Surveying

Ernie Freedman

one topics; fourth XXXX three you, will Today following Thank quarter sheet three markets and Charles. I and drivers. financial results capital main two in the balance for the discuss activity, our guidance

Let’s with activity. balance sheet start markets and capital

the after to maturity totaling percentage X.X Our In efforts public closed transaction XX.X%. April. stop of our grade as improving average bond yearend, investment that The billion. in balance unencumbered to years our are achieving ratings our didn’t and toward our weighted improved offering November, of further second sheet we to years homes $X

to targeted the XXXX net $X.X full times, of our revolver of far at $X more $XXX XXXX cash capacity with debt end million of billion of Our finished X.X our finishing and available. XXXX lower not to at than turn level a end billion X the X.X including times. than of liquidity, year from full EBITDA at XXXX ratio too off was We

For of debt X.XX%. in an unsecured years average almost debt average to of $X coupon pay down with year an we of secured XX almost the billion issued maturity

capacity average providing shares yet program, of with $XXX Subsequent has million an the of in $XX.XX not ATM In conversions December, new shares of remaining X.X stock. X.X XXXX ATM stock quarter, Total of been million our During used. launched end billion to at were that used common fourth million through for a price us proceeds completed year settling January, we $X.XX notes convertible we issued of program. primarily our we gross approximately acquisitions. of

XXXX will quarter XX.X% fourth the per I $X.XX AFFO financial $X.XX for fourth Core results. share our through respectively. and go XX.X% year-over-year FFO Next, quarter and to and increased

and NOI by primarily $X.XX The will lower XX.X% full represents last Our cover were growth year-over-year which higher thing guidance. expense. XX.X% respectively. respectively, of FFO year share was This is core and per cash and XXXX driven AFFO interest I and $X.XX

to in with XXXX catalyst is XXXX bad XXXX growth, and growth guidance believe tremendous revenue and As elevated also blended same-store improves occupancy remain Dallas comp, demand X% supply finished assumes Charles same-store into for lower similar It levels, we account we will a revenue we outlined, that pre-pandemic tough growth in Despite ruble slightly on to returning anticipated of in as to the but historical in and for expense a XXXX. rent assumes XXXX that again assumptions XXXX. ranges fundamentals those than Taking expect not remain strong our in results XXXX a line full our debt yet us year XXXX. average. with core Starting results. favor X% growth or

Turning to growth, for XXXX to of same-store range expense guidance X.X%. growth is our expense X.X%

Our same-store growth for under been expense years last the each two of has X%.

and This beat turnover our XXXX due growth, a work range of contributor and earlier best on expectations growth real our being on reverting and and maintenance, from more same-store X% to That to we’re growth we’ll We XX.X%. to new do this were a homes we Dallas’s expect repairs our Note meaningful homes regards growth costs tax expect year, higher for again X%, turnover expectation to home these to rate. to to to growth inflationary XXXX year. to builders. in we NOI last beyond. estate a expense that expense the in said, and be to personnel higher hard acquiring closer of With pleased pressures brings XXXX comments pipeline various

full just included share board are seen per schedule dividend this helping our disclosure core FFO our quarterly supplemental local our per share a new earnings earlier we With may have announcement of our XXXX homes, of be we You which XX.X% found and industry that’s to of It’s anticipated considered, that locations, our can wrap delivery favorable have has our filing. A these $X.XX that that the X-B of in differentiated of the $X.XX In and our FFO on can expecting $X.XX core a yesterday’s $X.XX. of everything year. year over per reminder be up range be per fundamentals the XXXX year full AFFO of midpoint XXXX to range will to increase found prior in to our share and are it’s release. succeed. core with to strategy bridge guidance conclusion, share in share our XXXX upon $X.XX around scale our month increased also I not built us eyes our markets. FFO

have our we expertise, With advantage through growth, results. or to Operator, So ready execution achieve our please competitive continue the whether it’s to industry we’re that favorable believe our to we line, a strong open questions. for

Operator

Tony, question first Morgan. from from go comes The Instructions] today [Operator Anthony Paolone JP ahead. please

open. Your line is

Anthony Paolone

changing the Great, morning. thanks you question on on what talk buttons business may first have and Can is if you going with what and any, and about hot dialogue regulatory environment. be good risk front? regulator’s anything the you the regulatory envision in My that the forward

Dallas Tanner

Hi, it’s Dallas.

our from that FTC business them regulators, in understand anything business question. the with aren’t for not change help in get thanks suggests that working broad inquiries sense, there and been but we’ve really we’ll seeing the change off, to First necessarily we’ve a any the environment. From to time time, disclosed a

generally. big across rate I the rental is right think growth focus now around residential

Our big multifamily are well I rates pretty with peers this growth out, think coming year. as

So necessarily just anything that I to the on front. pressure think regulatory more the inflationary versus headline be tends

Anthony Paolone

do What growth of this, help rent course guidance, maintain we order in your then in probably into over us. the you out? spreads if laid you’d maybe be to that rent market to can back you And assume XXXX

Ernie Freedman

our spreads, new know as I out I people can it lot lease the close to XX%, important you in look if teens, not in well spreads. lease loss as activity we that’s portfolio Tony think see pointed exceeded embedded between big think you numbers in pretty at our lease as of far you a certainly to new high a well during have to and renewals. have I is, renewal Yes, have And XXXX

there’s time a in Tony opportunity rates, XX% that renewals numbers in be XX% as another give of to Charles longer talked us predicted his we’d increases range, and renewables in period over said more the harder for X% throughout new of to little business. are probably the As renewal the to got stability and our With pretty steady the in in script lease call bit a that’s going in remember, probably we XXXX. imagine, our about way but

we lease look you the So impactful expect but the year but But goes rates rates in through. impactful January, new lease when on are renewables, pretty still talked certainly high extraordinarily that not plus renewal think as is very at year. ended on new we which that moderate will that in Charles as -- an being that a rate. see do about XX% similar throughout growth an XXXX, seeing lot that basis, about it’s a in volatility where that of X% That’s consistently of the majority numbers blended the we not result up overall to because as

Anthony Paolone

one sneak in course could just just more in your have over assumed you acquisitions what I XXXX of guidance? If terms of the do and

Ernie Freedman

And absolutely. pretty Sure, our can small schedule in as you builder XXXX. see the contributions, in at

typically look in XXX you Point to be assuming about with then have would expect a on fourth with being a from capital the out invested. got we’re venture sometime year half plus we sheet, of guidance and ahead And in acquisition perspective of of pointed Pathways a larger our separate finished and terms a billion $XXX balance committed joint up second as during and of wouldn’t be the the the and there. we out billion million closing started Tony, that closed at I quarter. that needs third that about activity $X we our that of or during people kind saw million it out invest we the of be some If fully from Rock million will we And quarter morning, or this would commitment a importantly, expect this our Pathways range, about balance, should XXXX, $XXX cash that opportunity, minus about

And we’ve We on of the balance XXXX. and in so million million got balance when sheet activity $XXX to sitting of activity, expect five $XXX billion million between position help you $XXX sheet of cash in this do about that. today factor fund

of from slightly free in flow. And So you elevated were your cash we then, have XXXX. where course,

With the at dividend -- we Our $X.X our increases some even payout account for sheet able the on majority of capital need vast that to REITs to equity side what the find into billion, XX%. be would large we’re for very but we’ll the achieve ratio, with there potentially during here us of as we things dividend way all XX%, to taken about more lower activity, across capitalist balance those certainly to we some try debt on that’s number years get XXXX. efficient with similar to in did use will us depending that for combination and

Operator

question go The is Spector next from please America. of from Jeff, Bank ahead. Jeff

Jeff Spector

good thank discussed, with some new you’re seeing, share the from is into could Great, to you, your let’s of anything focused migration data? question that trends. you shifts other morning. comments Sunbelt share February. Any on you Everyone’s guess I jobs. on My population first laser trends say January us

Charles Young

that’s which I’ve state. numbers. move a of remarks. looking out for. two maybe see to, And space people And you to our our talked or given in a Honestly, XX% the main it northeast to question. shared there’s reasons the is we from our in looking talked about out of in closer Charles, what and them, we about But town, than the get see own know are family pandemic, are This that wasn’t in prepared from coming what were from some cities got from we combination they’re single or to to Great. it to do we’ve XX% nothing specifically speaks as where seeing they about homes. prepared a move great We Florida, seen the to they’re previously, more different We’ve of coming to be really work, new of locations, number prior, I is as southeast, quarters. of meaning prior remarks. my can this that

rank, as Our Florida, new in lease is relative really high demand Atlanta well.

seeing high real We’re California, with of some Texas, People as Vegas demand. out well. moving

little the community been on terms ask the but over demand of seeing we if schools, great it’s for trends, some kids they few in pretty are family high last really what our these types have looking the demographics. in the of deeper and you’re oriented, homes. things migration occupancy pet that’s and are and portfolio of friendly, also friendly, We our get quarters around why So terms do consistent within the convenience that’s such a

Jeff Spector

thank then And I the schedule for Charles. there. questions Thanks, you X-B. new two guess

XXXX of Florida anything stands note? on South is delivering or in that out Florida South particular First nothing kind just beyond, in to

Ernie Freedman

have different that specific future one, we or that specific look contract XX. up expand that’s and delivery we’re versus and I’m ones further XXXX, But today that’s us, opportunities actually and most in sorry one with of on for XX deliver those for over there the Dallas, a with XX a with But for in them. QX of someone working to projects the builder. first that

Jeff Spector

question, estate of Thank taxes? confirm seeing actually, to my could on for the you estimates the And expense if is range Ernie, that higher real I growth are just midpoint most ask just X% you. last

Ernie Freedman

less, been mentioned, remarks good the extraordinary. pretty expense growth prepared last been at Jeff, X% Yes, has as the or I years question. two our it’s

about I it’s that of into are the increase in estate combination expectation few things. guidance, an X% a estate out baked our you And about expenses taxes. of XX% So real think and taxes Jeff, point and a there’s of one, real our biggest

and our year can we And in and the the being in with in driver, turn again, to to regards turnovers other on going we’re we inflationary that’s XX.X%. that, better do low you And finally, certainly here fourth have in big a the at little for quarter, the repairs costs full driver. if on numbers, costs. extraordinarily come some going just can be came to good they’re bit, like some to that, than and aim environment the maintenance news appeals things then big asked a We’re in maybe then

the assuming from to a little something in range. goes are XX% XX% more XX% to the bit up We number turnover that about

So do are guidance pressure labor also inflationary not into of more our terms. but in baked only the supplies,

be didn’t. thought XXXX and in of to it Now, going start sort that to fair, happen was we to

hard happen. So growth. certain our to embedded for X.X is that will that range But X.X predict you’re what’s in expense the to of

Jeff Spector

Okay, thanks XX. a on and congratulations great

Operator

The ahead. open, next question comes line RBC Brad go with from Heffern Markets. please Capital Brad your is

Brad Heffern

good everyone. is what Thanks, model you yourself. you curious On then I’m morning the Pathway, potential can consider give thinking about to And scale key doing that any that there? there

Ernie Freedman

Yes.

excited really gap to just an homeownership little have over We’re as develops partnership but and also some help that leaving a the this this that this maybe for about bit a about release, people portfolio we ability second. in our seeking setting bridge are talked and level program with of We time.

I is why se do yourself. per which this think your a not question is good one,

people smarter along to us think But whatever we about. what get would are that in is that like we’d the do journey and we’ll alternatives distance, that we’ve and passionate perfect or and be I as And our in housing gates, those the to people of also helping time buy in think a extend continuum something past. marketplace. programs, their that our the around over and able Pathway the is company out programs I the kind offers are the if with we Pathways expect product, like trust, that of think with deal I partners opportunity. I worked

of the we’re to in future. sort Pathways that, So it fruit of investment see reflective excited in the yield what can is and

Brad Heffern

have And then on new any recently? color rental ratios trended where income

Dallas Tanner

continuing that We’ve upward question. great movement income kind on ratio. rent of been see Yes, to

the And with which ended what healthy. strongest on a is we would rents I five average say We’re over to up of is which income, residential month, XXX,XXX, in a ratio, two one the the very our sector. X,XXX around household at

testament location, with is demand to well. we’re that our a job our screening as really So seeing, good doing team and it’s a

Operator

please with Citi. is Nick, question from Joseph The go next Nick ahead.

Unidentified Analyst

you. Thank

the either or increasing As quote don’t single we’ve I something been that’s from earmarked in a seen, to you the competition, do space, most geography capital amount else? or of know direct family where see rental change channel the

Dallas Tanner

Dallas. Hi Nick,

We’re that’s shape certainly three for And out still hearing take across categories. to two build a or starting rent lot there. different the narrative of

You really capital, of are a more of pension stuff on you’re kind is But that townhouse it you’re hybrid, conversations. hearing wanting deploy as partnerships to infill to with where of coming at have up much basis. where geared we’re square guys building we come family capital having a towards are a like apartments have And is or doing lot for companies are least builders, in sophisticated feels as the have Paulte companies, we’re certainly really starting like lease and in pop with insurance smaller more seeing footages. to kind looking then garden detached sophisticated in that sovereigns, that funds, other style single suburbs generally We product product. for ways

had is to we it the and they’ve the I capital markets that Nick, know we here in got that’s similar which challenge are the of as Homes multifamily sound is in. largely why of to not over which kind why And lot of kind to of is around areas a build as have Invitation what difficult the which replicate is great have think a you platform, think I all of couple second wants One, piece think and exposure I’m at years. thesis your to you things, I family hearing and single but ways there’s you is same that similar have logic, exposure a where’s of do easy.

Unidentified Analyst

ventures program that juice your of all than here your management management Nick. a you’re one enterprise? of to try speaking layering capitals an with on was you maybe then and you that much operating Is larger the Does asset perhaps and appears alter the overall views return there lower process active and willing, it, platform take That Yes. and what in for out to Michael advantage sort this growing of can today?

Dallas Tanner

Rock a step out venture. is a year certainly think that Point something things important you key I shareholder us. smarter bit focus. One, kind gotten take are our you’re a It’s absolute on over to touching return we’ve with the last of Michael, back

reason, want to opportunities things how quickly Point But shareholders. allow of cost for there’s that growth to that sophisticated wasn’t platform bit that upside way do a we we in more different Rock risk slugs, our and for portfolio accretive accretive things very could are to. insulate could obviously wanted do different the at do the to grow And a position we capital us and also to venture overtime the we some of think was overtime businesses has that shareholder. for some as discretion So about whatever the JV complete to as the probably or platform as to that there’s get a distance we our

I we’ll continue opportunistic. to So think be

efficiencies space coming I of outside geographic, around some things where thinking I into capital think driven, the use that a you how returns. of to markets box the risk, and that. less can create And future exceptional take shareholder lends terms think in price point could or obviously actually opportunities, it some platform think could also itself be look to that there’s ton value synergies of and at to the the the drive of platform to of we but the

certainly look we’ll distance. something it’s So and overtime at

Unidentified Analyst

made working the home XX% and their from is? that And right intend a from was just XX,XXX representative know, that work don’t now. those then comments? offices can new of future, about all if to is think talked new guess of the representative that that and you a you portfolio? more geographical Charles, And of serving a is week those the residents How out are in I open. renter, second park. that are you you impact? Or sort what two about home I homes you’re new you the it It’s with comment surveying days don’t half bit can what do tease coming bit a even only of topic, maybe in little think total little I some there just

Charles Young

No Yes. great question. that’s

new who that moved we’re Just clear, serving to be quarter. residents in

that year sentiment of much. few given you’re trying it last and really hasn’t capture looked we’re to you what’s changed last general it what those tease that kind but So are in, But moving the a good hard at at have their or time, just for, quarters, COVID through out having question. it’s to really asking who over

from almost for the gives said, part that I XX% time. pet. working of them for about they’re single we are looking from XX, And As their is home environment their that other families, home family the got XX% thing some thinking that high safer are it

as you’re us. can But can’t we right pull try as information so future. in that the now, asking deep And to we go out

Unidentified Analyst

understand portfolio your It into just I to of to to size a Appreciate put on a conclusion a it I to certainly a to eye context to a it didn’t just headline, which smaller weeks. better, want sample was headline, time. few later relative we just try want the the and you in based can set. in all that at you’re Yes, geographies catching an it. jump do bigger See

Operator

Berenberg. from Carl Keegan from is Keegan question open. your line Next is

Keegan Carl

for the thanks taking guys, questions. Hi,

home First, little answer. I and sort forecasts the challenging I’m going to looks any have you at But appreciation for housing on have have year? of impact one’s like a this rates any it’s price curious, the market? just internal broader this thoughts guys Do more think you to

Dallas Tanner

if the This of different is could in happened last all We would what’s home terms months XX be Dallas. over pricing. have in professions, we predicted

we on I very obviously, agree we’re as just our your the it case interest is sensitive. XX% across this, So very, looked And would back marketplaces, I sentiment a with difficult to rate basis. around look that it’s at predict. say somewhere sheller

years remember the and then between think years we four can closer ago, I I was about back can XX ago XX%. back number three X% when to X%. and Now at And look or was it started that business we XX% were that when and we number or when looking

decisions this in morning go media of said, being forever. our space, to don’t grow So is a the I a of all to the market by around like we of were inertia doing living I factors. wanting in a away. or of than pricing just influencing years with this sky that variety to the couple expect of types yard with they some bit desirability do people to momentum here continue longer now, the said things median people kind are more little think a to But mean, is trees this, impacted going where we but are Charles things these out laid wanting likely maybe stay a

And so pressure that think around I do housing prices continues.

an is think level, create of a municipal really marketplace. zoning talked than very so around to and and the implementation about supply we inventory. level course able at bigger come much just to to I are the into months correct ease supply challenges be This what of

generally and three. low, relative creep would a bought XXXX, paying in still up in given expect prices that the rate look I by that are So was home first When stay somewhere rates it you we Today my if even going interest is though elevated to at basis. they’re on home to I large, high really X%.

it’s a cheap wants So acquire somebody for home. go money that really, really still to and

key development within the level these of that to of in calling to. are issues some is, people attention markets. appreciation solve thing be That’s think pro the some I at the municipalities going state and to

Keegan Carl

guess like Got March. commentary more use rates but renewal could sort what and in the insurance they it. any I of this look for just around one’s Ernie,

Ernie Freedman

Yes, good question.

just spread We’re we’ve a right through actually our from event. because going catastrophic loss the history such for different good and risk understand much as insurers us the had renewal and now very of

Florida, worth our one of that than our scale. hundreds millions of two could Dallas homes different scaling in is be build a certainly about dollars. think you Charles having residential commercial buildings business have lot and to or But buildings If or large

gotten here and few renewal share maybe an that’s up to we’ve generally X% the expecting insurance weeks. the market from but going hopefully next in or flattish, feedback up good be X% the wrapped We’re

So insurance relative we’re expenses. will inflationary be seeing pressures us a to our on believe guy good other for to

Keegan Carl

it’s Yes. to No, good hear. certainly

was or on one anything that? want guys mention regulatory. the FTC about beginning I this Did clarify investigation the bit in Just little to mentioned on you a thing update know any sort of

Ernie Freedman

inquiry No, working the that no we’re we get to answer and broad, make need. the that the to questions our we’re that the any doing just sure with we’ve best information is company they they around them update there. that the pretty They’re acknowledged industry or have FTC

Keegan Carl

appreciate Got it. it. Thanks for the guys. Really time,

Operator

question next go Jade ahead. is KBW. Rahmani please from The from Jade

Jade Rahmani

Thank you very much.

As overall, family both a in affordability could give on and growth? housing rent around political you to in question, if particular, follow just FTC a regulatory the the and to single broader there’s hearing respect anything update rental question environment the you’re on and rental

Ernie Freedman

by the those And inquiries the terms that as of last information bunch inquiries Committee, Finance available the to large, We’ve to you we’ll from by information, got of house virus have with we’ve large, is the worked we’ve others, subcommittee that on and the in benefits several for been inquiry. with and federal information and the being across continued updated for on how also XX on And with to available keep to Jade. and Warren happy a local industry. to done industry, best of matter questions overtime. many we’ve give our we’ve that and Its our as Senate generally everyone or within is going and making years practices, we’ve Yes what’s Banking do guys our had companies congressional public inquiries Senator one continue plus that. state, over of Corona them quarters, that. have Also from

of where cost of across I rate and discussion. you’re noise different goods pressure categories at and does really think the felted hearing the will levels evolve center generally, The local of the around kind some price sectors materials and And overtime. it about with is well also just going of and of home all up. that flooring cost as will our some creep that and we talked paint appreciation, have

job, years that done creep sense our look at be creates to and an the it’s locked team of a as and just awareness heightened using our environment and I phenomenal we last But two a our power the pricing keeping and expense think you in of that effective as if have Charles platform can. costs.

that think we public the in another cycle of And unfortunately, some said all parties to continue into dig take this objectively election our best years, to some And is so Jade narrative. every become that which going I do this again, we the we’re approach always to two to same the of what’s to We’ll four single on with starts in have, feeds any and and understand family. want headlines. and in work

a space. across good percentage, We of small we’re but are a what barometer very seeing small, the

of we really that had kind several new outside And so we’ll what been over Jade, share that years. haven’t anything the addressing beyond past information we’ve freely. And

Jade Rahmani

your the is your the operational that of anything take. some peers, that causing And you’re feedback changes? will rent or any receiving on they the bumps has of One there environment is example, from limits sense for

offsets they to rent concessions the you’re some to running way there operational And implications as growth. practical provide partial business? Are the any

Ernie Freedman

of through and we Yes with earnings I of mean, dollars, the years in folks we’ve in amount of terms talked considerable rent this tens to and on last how the program. of be the call, of couple forgiveness, last about millions Charles rent worked adjustments, run clear, that done a has

assistance on and making job. all has make we’re we’re working of working sure caution, the the sure and with with that obviously providers even erring Going rental a Charles different forward spectacular done to customers side with

over $XX behalf assistance million. to our rental Charles, years close we’re with X,XXX of in cases secured think we’ve on two almost residents. last I the

going don’t and and So issue the team I change we’re anything following outside done the has new an to that property to exceptional around to we think think do laws that how how state local way businesses of job, about renewals. management operate you

the side of a headline on we have lease embedded our also loss to I think there, of renewal the lot business. is Jade that

modify we’re and going renewal assets kind market of look So our we are We out. being environment. and make do that at market sensitive to sure where current

renewal You see numbers, lease in than numbers. our higher that our our are substantially new numbers

overtime. the business actually a think has we so for that long term And tailwind good

Operator

Pawlowski next question John is is John, from Street. open. from Green Our line your

John Pawlowski

on I pricing lot curious in versus was your the portfolios get time. private on thoughts market wide for disparity seeing a to them one offs. pretty we’re Thanks

there of And fashion, now? advantage opportunity portfolio kind reposition in right step take so is more of the portfolio prevailing change premium to an a

Ernie Freedman

to more really last similar like portfolios I seeing few great John a a high we less we going It’s premiums a things, relative seeing would and year, appeal, so those retail on really user felt end what call saw or of we traded was maybe you’re basis we thought out. cost question, whether were capital opportunities of we’re our consider pricing. That it Yes.

to protections, lot part got pretty is it. yes, in practice, of return got base. adjusted that argue But high asset it’s portfolio we’re terms parts the our we really premium. And it’s So Prop-XX our a of constantly upside of at a a also looking again, And tenant it has management risk a profile. portfolio there’s be of values to you we steady could think able our drive California might where

itself, So we don’t look analysis. rely anytime portfolio at we our

internally. We turn why conviction have think a look in discussion do as the around that’s a But wholesale to take necessarily near it’s us something immediate or and where off doing there’s matter that I and opportunity, best currently. so an and you’ll would we’re we call us we have for that practice opportunities. don’t continue term and from course, what certainly of see

John Pawlowski

portfolios, one looked the underwriting, typical what portfolios. follow up mid-sized a versus cap you portfolio on at a even assemble and portfolio is small help side acquisition and rate if basis a had spread you’ve you Could you’re just to quantify as on on Maybe that the one-off?

Ernie Freedman

the trading, say we mean, in year markets market. in depends I on of southeast it by saw rate, an I what place Sunbelt, kind in cap we’re trades Yes, some in that high just last would threes.

a widely, You cap is. there’s limited and there. on cap how will those big one But and high to deal by the at opportunities again, buy, your buy pretty might because rate fours. based out be sort you today, can product the compress swing deltas the more able of just one it’s or assets, five those And

we’re an to highlighting to that to homes careful. Michael or sense buying is be going We for X,XXX really X,XXX you’re with one accretive us. think that goes important want year the one-off sheet, it to creative, things and extremely do point, which earlier, is the about want do are are balance make we I a things that talked

path. we’ll down So that continue

to believe are you things portfolios the capital those we think, some conviction and of And those opportunities, over you slugs be look the that you I looked in assumptions. at we to at other that aggressive time, of to have look when those have have on at John. other

John Pawlowski

Alright, the appreciate time.

Operator

from question next is St. Haendel The

Haendel your is ahead. go line open. Mizuho. from Please Juste

Haendel St. Juste

thank guess that year. you, you JV Rock you, guys from good mentioned Thank the question, Point think to you extinguish the expect this morning. earlier capital the I I remaining

I about I’m a curious new JV you how guess So or thought adding maybe it maybe partner expanding here. potentially

thinking Thanks. you’re how I’m about JV in role might or So curious your term? and a capital how not it play

Ernie Freedman

initial view balance already sheet Yes, that back go that or venture And Rock quarter. REIT. the we buying for and then third be the will I Point that second mentioned the would likely finished be accretive the on in additionally growth

are can sub could price that and want, markets accretive it there that points time over different the within capital, platform where mentioned there outside are outside we’re thinking I earlier, distance. markets, benefit at our be on the think we box markets with I

I continue could which our think, time around for core what approach spending our get to is we trying be business, Haendel, shareholders. smarter accretively to without are to that buy confusing

partners, outside with, distracts type that you interesting find points those want to you think So about over anything at what look day they make could JV price long to maybe what capital, don’t we why it be are, anything to core you you got sense. And think or day. do do you call I of that time, to ventures right can the got from

smart story don’t end really good And cost capital. of the we against that geographies, a and day, have we the clean, the opportunities, the sure the of really ourselves. compete So that is just at and making being price about good generally the points,

really We that have infrastructure an growth. shareholder supports good

outside that will we of we time anything balance So to we want maximize that make sheet. on over at that sure on look investing

Haendel St. Juste

returns impact how XXX year the scope have numbers of Can guess. talk might the forward? of a about maybe the bit you. fees trying and capital more of follow deployment? on Got like more bit half be this and And it, invest expecting up on that and the It sounds Thanks. this pace earnings deployed, a to going to I thank understand a you’re Pathway you

Dallas Tanner

it Yes deploy just happy the And for that. additional how of in in part very looking also, not announcement, of they’ll fast Haendel, terms to also ours. capital, home address they’re Pathway

but lead seeking investor, right we’re capital. So additional they’re now out the

work of other capital. be would investor during So the later from to, time requirement added investors about our potential we’re stabilized proportionately on balance the in the year. think then capital what that during purely around reduce year the slightly the in difference they’re homes, homes very that sheet this what best sourcing And then we’re maybe the the doing be they’re certainly made, that only That’s way the will today, they’re homes this But sourcing which higher. any to is even doing terms will Haendel buying similar period our here where there’s customer. enough is firing to deals is of our

So an homes running the is the the paying asset do like Pathway homes we And operating portfolio. we’re an with company, which then in, management paid management on investor property our we’re being fee. fee current

some return if see comes So really capital really with having leverage additional nice us really a here you to where can is for in. regards good

someone capital, capital So our else’s also is too. earnings just own management not but fees, have

a company it. operating us on well, to then, future would in we valuation course, in the our platform, other capital that company can it’s it get nice a beneficial but we there’s that our going certainly of really lot bringing in gets well So people’s case, good as just really be and pretty the it’s base the be blow could as to of if investment potentially looks to capital, that operating it if start

Haendel St. Juste

is whistleblower helpful, a Got can more, it. to press was yesterday? the it’s That’s in understanding going a guess, lawsuit this and Dallas just, could comment always and share that on if the But you California matter. one I’m anything in I sensitive regarding

Dallas Tanner

make Yes, on, a happy city can. whistleblower really were don’t I’ll fair and appropriate had of our want your let not the legal rehabs I this. on way. Because kind term. on I the mark permits, and comment was we is pending team make to with of and as deal this contractors is really general to share can legal the our a We pulling what comment saying this practice, What matter that only

contractors, As a expect city. you matter with required appropriate contracts general the permits like of would much they’re practice, in pull with to our our

come sure we make time, and municipalities direction where things time proper these the And issue of that we the review. when actually from point look up lies. our again, typically lawyers then to So to

so outside matter know, as on practice appropriate can’t for comment of Haendel, that And our are permits. legal GC, a of I really but to our required just our in pending with pull business, they contracts

Haendel St. Juste

color. you. Got thank it, Appreciate the

Operator

[Indiscernible] Brian from open. comes Evercore. question of next your line Brian, is The

Unidentified Analyst

supply you during building any you affecting and see that year? seeing And partners? side, currently trending are the how bottlenecks On the do your you

Dallas Tanner

Yes, rehab. we XX% any real of structure bottlenecks direct not new the price we’re the of a purchase seeing home, When into homes. about our the buy goes given

carpet that. So XX,XXX that in and mostly it’s range, to all XX,XXX paint

think not today, year. So it and most early is late really, good noise But up of do with middle really bit little last up job I ops the buy kind of We’ve little of a an there’s bit good on, and of sourcing from And we’re side saw we GC. healthy the on had labor a to coming doing a a acquisition in of But year. we’re trying of catching catch keep to what year. up. this just perspective,

make front scopes us. writing quickly, in for easy that on to And it to things quick that an are streamline lot just to of making for really GC terms that. all we’re paid it’s we a sure be work So and of make with them doing supporting them,

are And on the sure side, our to so the and much from it’s really mostly on GC haven’t material seen sourcing around that turn the house who right we’re making requirements. going

Unidentified Analyst

the just quick. income on side, then ancillary And real thanks. Okay,

goal of year. talked reaching the stabilized to by You’ve about of million this end XX that XX million

timing, that’s Just of changes the there’s any, want still to any goal? target check, the if to kind

Dallas Tanner

keep a at built through driven high momentum that seven growth. the as nicely. from rolling programs an OS real being it’s team on gave years program, video maintain the We’re And we’re going good pet over nice well ancillary and has home that been that ago, perspective, there. end out pandemic, guidance as really smart doorbells a by few we optimizing Main are focus on really and this able well. We’ve really to areas of year, the introducing

to high out partnerships, That’s about Terminix half and stuff. to to we that base a gave. that that’s partnership end were we there. and from we [Indiscernible] going program that of rolled ago, to insurance, utility landscape filter grow on a it then on guidance with that really continues Our get And starting the the a think year work case,

Ernie, want add we As to off. if to you anything, go. you sorry cut

Ernie Freedman

you no, No, it. nailed All good.

Operator

Next please Dennis, question McGill Zelman go from & is ahead. from Associates. Dennis

Dennis McGill

you. question. Thank Thanks taking for the

migration one, kind First narrative reference and is the I portfolio in rent are are opposite looking would the just if at point, both were people markets, occupancy guess away XX conclusion. the talking about the lead among you lowest of as we migration, and the to Texas to take data that growth

relative relative your there? from good but why narrative, to other looks history, aren’t curious just migration markets, the versus So Texas and know numbers perspective, to better I

Dallas Tanner

beginnings some saying in the fair. Dennis, to it, we’re Well, grow does let I able Texas, as with with our the dislocation sample think frankly, off that to do whole and calling by the love footprint of that Starwood merger of existing it acquire you some me we were to we that of market the the more quite start in the a of numbers has trying size be the assets see to

our only We XX patterns target like the are get which years really migration fundamentals gone are here the have better. in trying the are for to net feels off to Texas homebuilder going charts, program, growth, on

loss, and a actually started up like and better smaller lease to and bullish, provide get we better at little you you And market acceleration categories. candidly a growth bit scale you back to we’re kind better and the we a renewal saw within leasing services the bullish. rates and Carolinas, to would to the see Charlotte And to pre we we able see programs your extremely of you for expect, the that to if the were your trends. remember us, as the was start level, struggled when down So start see comes this

it’s in the don’t know, something we that get nothing So to a birder, I and on, as you the portfolio. it want but overtime focus want right will add adjust anything? I say we it’s product don’t Charles, to change if

Charles Young

very, QX you really size our And bullish. at long within Houston -- And XX trends which of if very still it’s a XX the call, as is good was ending look market, versus occupancy, today, think I no, this specific it January term XX/X healthy. last does in matter QX year, same Yes, out XXXX. was was

QX which with in And growth our in brought to to already down in But of So are for XX.X while good Houston occupancy and rate QX. these the January’s of it’s turnover Florida Dallas, numbers spike a not some bit just blended which we Vegas keeping saw the XXX quarter. XX. and are and extraordinary up with in up Phoenix, numbers, we’re increasing little the

still and in that before healthy blend. really in from January, that’s we’re So up X.X X%

the to occupancy, markets overtime, to talked given we I’ll think And Texas continue of healthy. in going this other think compete migration given we So, the with some seasonality, start will about. is to I numbers be

Dennis McGill

Thanks. month, helpful. to years? how two That’s over that’s separately, of year how and your little have, are last Okay. And a then bit or do you month much shifted leases the

Charles Young

up. portfolio on leases, to X.X% little some California limit matching about a have that and month to effect seen in is small pushed some month residents decide the the pretty what’s and of up to when there a kind they’re be portfolio. our part Otherwise, to month today. to it our that’s of a of we’ve bit our go shifted of is it’s typical rate, the month what think would you month month to of out I it Yes, And what renewal

Dennis McGill

percentage then single more communities on detail X,XXX there? detached a would types pipeline these of communities or single last detached of the family development true and And partial homes, Great. then any hold or detail just little family one one be additional maybe or on those the just asset typically all are

Dallas Tanner

bear to here. with you points Yes. and few No me because bullet give it happy I’ll a

you You in now on know that know, just X,XXX homes play we’ve I got think contract it about are we deliveries this close right minus take later plus that in or will year. to start

two close that or now contracts. We XXX homes are another pretty right have to

but kind majority much some So product single call it experiment of X,XXX detached to townhome we Their in a some we locations, that are in in way, more be location pipeline. little think pretty it’s family in which bit Dennis, to really we the up ultimate early the infill margin And going clear. kind our of We of on this also to now that cap right in of of the can the accretive. with of kind believe back these basis, this picked done are bought low in We’ve be past are are days driven. some this of mid going some along fives. rates and a

we in And markets. and got of then pipeline what in Sunbelt largely about of we’ve where delivery. we our is XX% Southeast take of kind accretive terms So current think really

we also three continue accretive interesting Antonio, built to looking talked to highest markets. expect get like Salt that our will good as a Southeast, John expand. markets Austin continue us. to the growth. of markets if really that builders for to in of all to try ways XXXXs markets, a San new insulate and over that and do Peter they’re around Texas, some to smart be we’d really and trying different to year spending like five DiLello Gibson, Lake, about ultimately with number network those and past are We’ve continue where want on we’re a the in of and see of to time providers to horizon. in And at job there’s be rent some we’re of So of going and business, seeing And we’re team a maybe the to narrative the opportunities, and to around

on haven’t are, on we good to So these an transparency opinion the like and think my like are And these things marketplace, what do true as and that ago, doing into to of we’re more but right we’re tried working, we taken a I quarters do majority building well. and in deliveries, going partners. we’re excited bring we’re going a trust, with leasing where laid about foundations candidly job the we of the out couple it built quarter of initiative supply is to it,

Dennis McGill

Now, density ultra all that beyond? sort product you’re experimenting at so high with of

Dallas Tanner

and blends, based, little day, to ultra X,XXX because never a the be No, tend start out think customer. those to a little the But smaller talked month we foot It’s end ancillary I the customer a not home day a at a square to because an four high I would wants state tends of our more years at never. It’s get of no, about. have saying now the at about it where and to to the customer bit things $X,XXX product. customer density and of that to end bad little the that from the businesses Dennis, amenity different this that it’s be the three the wants, rule almost different X,XXX Charles

additional So the and what to in to a drive part what’s mobile well, and continue do distance, everything itself make think we go into can beyond expect location customer phone I maybe experience that this from I’d do services where being the really platform ways of growth with will for some our time adjust great opposite of business way investments. real actually and to estate just and kind lend the over that their the focused to

Dennis McGill

Good Thanks, Makes sense. luck. guys.

Operator

The Choe is next Sam question ahead. Sam from Credit go Suisse. please from

Sam Choe

for Thanks guys. question. taking my Hi

last the from talking XXXX again, threw we’re Paulte? quarter. current think a guys you know of number pipeline like since wanted percentage about what just is Just to around I pipeline, acquisition

Dallas Tanner

to And we’ll into majority as gear we buy on actually little XX. doesn’t XXXX, you’ll we kick in you’ll seen more XXXX. of supplemental look really Paulte to of in out to going Poulte. But start XX us know vast stuff, probably us you is deals well, very through schedule XX fail. XX% build as start of schedule vast and seeing do I from in intend terms XX%m of majority then to think And If Poulte with from comes Poulte happen add, for to what’s terms that the continue the it XXXX. in comes until of in AD

Sam Choe

kick Right, think will XX. try guys it year build Is and the five guys correct that’s it. where So to the eventually get in, you about XXXX period to relationship the where you will after expect to That’s and right? that homes way the XXXX.

Dallas Tanner

Yes, here two and the quarters announced ago. relationship we about

beginning of that into at XXXX. the thinking five land will about they to the when early to get over policies with acquired the the so, land. process regards with us when years the acquiring certainly XX we’re And really involved XX And we’re because million getting have

from certainly ready the start developments to certainly years a takes there the for couple land to happen. the So to get

you So guess increase evenly steady than how to kind year. for end takes to personnel other outperformance. number a what to for you’d again then estate it’s fact that’s as year then and year, take overall see expenses the in us. get ultimately the through pretty information, the those and growth in real out you we’re the appropriately associated see why years go. with just will for crewing going you’ll of the rate you be cost the account Sam, accruals. in regards And homes more your of If the then have fortunate growth and of terms the the at lot you’ll stuff tweak taxes think of so deliver best into And that later I that same a throughout put It

into growth with maybe XX% property expect and you see some that, get expense really gear environment at, to slightly until to year around a, and we would smoother we’ll where profit see taxes because the our and started expect towards with end get again, things So of for I easier XXXX us the regards and it’s a XXXX. here half kick the second would to we like turnover, the you’ll relatively expenses, of comps being inflationary of in maintenance repairs

Sam Choe

quarter? like One total Denver to I the helpful. going and and Seattle from guess occupancy was more Got me. on compared XX. That’s XX the rest of low kind the it, guys. at of that really for portfolio What during were

Charles Young

Yes.

And standing we did and start rents to there Washington a the move what’s Just thoughtful Seattle, is had decided renewal side was the when some way to there out. of on quickly back that a could to that business move out market on residents place. very in the we freeze in

of bit a little in a turnover. spike created it So

very And so was to see growth go and from XXX. and healthy at it’s rising XXX rent January, growth why higher. rank renewal you already the see But up that’s you’re in to going occupancy still XXX went we’re down

Dallas Tanner

Sam, store. So same portfolio, total I were you talking the know not about

those markets. total on And both amount portfolio of in activity significant acquisitions we’ve had a of the so

homes And bit quarter some fourth and longer get so the and did acquisition general earlier, shortages and a year, market. we’re with And little acquiring it acquisitive with up our very is us what’s contractors. Denver our did the labor in to renovations been happening quick talked taking this, in we we’ve done. both see the XXXX, the Charles about see supply the of in second half we initial Seattle activity of ramp And

XXXX numbers. work more to than normalized the taking impacting the ready. out what to We year, XX it’s So there, actually seeing to historically, you’re XX of longer about And to occupancy. that’s expect portfolio homes first total half itself over get just days would get our that to

Sam Choe

congrats quarter. it. the Got Appreciate and guys color great on the

Operator

The is next from question go Austin Austin, please from Wurschmidt KeyBanc. ahead.

Austin Wurschmidt

circle pathway on Great, really understand just thanks, back the quickly, to Wanted everybody. it. investment to better

over these from So that ensure any to targeted provide just price deals, term your second rental is here grow be essentially, appreciation investment you commitment return? And upside home the you could over million time? an any upfront then just you achieve the is or resident, total investment, of your then $XXX And structuring could enjoyed period from the would by the helpful? detail are

Ernie Freedman

may as well. and Austin in Yes Ernie, Dallas this chime

to we funded buy an put expect right residents And a the apps to negotiates homes. stabilizing be XX $XXX these customers some leasing source property current least part purchase similar set additional rates they one partners question, been actually up and the source million the we the because further. group capital of level moving very that the the platform, renewal they’ve be. renovation there the into will be have the operating and can return want to on cash the potentially committed of entity as that that would over they your would in also very the is of after perspective, the there to With home homes away. period we that the they at a the is there pick the home. But million even clearly time, company from we first yields XX% operating our There’s grow prices funds, capital were And company, someone’s stabilize And to of or well. what that around slightly are that in And period property be because trying then quickly that And return leveraged out and with where we time remaining expect and own light be states be better. the will consumer, they’re million hope Pathway owned. used is the will It’s that pre with will to actually the homes homes, then committed entity. raise to folks as well the of then the $XXX will that

with that home get that if factored in but do certainly of together So all some appreciation the outsize benefit resident. accrue the to will that’s that’s put to price the resident, lease place see into you

Austin Wurschmidt

Ernie, just the for I concerns action you helpful that. regulatory or And really side, do guess, on thank a which came That’s let regulatory that up, lawsuits you secondly, it. investor and Got come the lay profile outstanding presumably, backdrop mind up class how then about gaining you of back the then everyone’s conversations, and scale think frequently looking any in forward? ability maybe derail and picture. on release on Do risk these to bigger set Invitation’s are the internal growth opportunities for continue

Dallas Tanner

several action been claims, across address states, are me California stem they dealing years in. two kept the references. class but dismissed they the all the for And same one the case, was there Let first from but first We’ve piece. with

on been counsel general going taken this we with Our some anything case ongoing. time, a on there, that working has for while. a that’s just comment is don’t But

The plaintiff, in Maryland. have one old the the been dismissed case second is of the state after filing

from a in So is fee time And news things claim to our do late and regards these the counsel through that to it. working outside time. no new fact there it’s arise

a we’re with I which beginning, Phoenix, it’s I filling back for year a and seeing think where sure understand country. warehousing to In of and environment, part it’s price choices up that forward it the of months. broader the XX new currently getting rentals, earlier, issue peak filling, constraints make supply a remarks lease people the terms all market like a at percentile single and sense XX% to supply space, to own awareness we’re is the an industry in we lease whether ago, that’s growth our housing sector go like there family heightened And what very, the was And during is, the very I’ll we’re a can’t said of and solve is home whether than housing, around in broader costs do a small our and represent subset home, better. a live. try the or shared evolving buy the lease in overall we of We we’re

of the will returns. class. product I invest been between forever. they rented people XX think an But the somewhere million type narrative asset It’s SFR, because in XX people will to that and continue this like institutional have million never be that been there’s

that happy of proud and we’re And part in small the play so story. we

and a I to that to up have high we’re not Right there. and residents. continue goes portfolio, it cycles our but stories of cost portfolio, reality dealing out Our now down, housing, all political tends goes will that services with. be tell you we just spectrums ways are the grow find to to provide follow the regulatory cannot environment you goal to but whether the accretively the

an bit better day, ways the So it a I it get can we how we end to little the to time from part think to forever. around has were At been find of was before. than make of will on industry time. it continue And picked

that And candidly to I industry owners an better. think also been be here quite And your into in really ease way potential less you’re how for considering homeownership our announcement, make or whether you renters we want those take for Pathways that’s might so focus can not. and on to while that’s And the that home see your opportunities this that you is do XXX our are cap rent a is own you growth obtrusive. way or and with it rate years, areas

and of we take supportive and So ultimately invest going something, lease Homes And the continue own as we’re of going make to business of this we’re country lease choice. talk to current we the to fully a to is think of company. about we want two going try that’s look can category Invitation a in third all are all is about the that And be to and we consumer want to industry some and other and the as a these as time, thirds ultimately We better. deserves them opportunities choice, the and something country to active that around practices in. participants view we

Austin Wurschmidt

much That’s in the lastly, and guidance? how Appreciate billion acquisitions, thoughts helpful. Ernie in embedded of the accretion X is

Ernie Freedman

sorry your, and X% range, you you assumptions data think use your are let I’ll work your Well, about or rate And cap layer able expect to Austin. where would environments right around can We that traded. be and to plus equity may or own now. buy similar what be them to we you cost in

Austin Wurschmidt

Got it.

Thanks, guys. good. Sounds

Operator

is ahead. The One. Neil from Neil next question please go from Capital Malkin

Neil Malkin

Particularly with kind footage, of your time. some those pretty their but locations, Thanks meaningful a significantly continuing quicker larger first the unwinding if way inventory, properties on of be in know match that’s going don’t exposure you’re to on sort a I all with Glad for your Zillow you markets in their, looking on the of their etc. year? part Nashville would cover a be you been the a wanting of get way, think to the to of into activity back about you’d increase you right markets acquisitions. guess houses Do they a about some the investment getting this markets you, in And found to of good square of have that foothold lot to I to markets. grow in going of several is There’s those? Texas, you’ve forward houses announcement Have The their of each seem in entirety growing website, that’s up infill into talked to or one look such guys. the that look inventory. at to sort your offers want XXX in? these everyone. afternoon, portfolio you to of be looking Good as back at

Dallas Tanner

a look as I’ll you thrive tell you this channels. year, or great question. homes It’s XXX only at And XXXX, in our and bought we

invest of the how a for to of a the at channels. we not might we in on line hood strategy there’s why. pretty where point around be the with lot again, go material to And amount that neighborhoods, up those start And investor. to we it’s you we refurbishment HOAs stingy We that always our the terms resident amount really and growth, So good back capital of to sound were markets, us we’re particular experience. needed. And that fact look underneath at about get look definitely headlines wanted crossover. your I When the

to location, out didn’t things. do a there’s looked. of we we on to there’s of things side see didn’t, want So our hold be finish crazy continue there’s particularly that standards, lot we is build And we’d we Zillow way opportunities, XX and the we We to but to certainly there’s tend ourselves if price, the brand that business.

the my would That’s playing we up year. So from a if that answer trades welcome haven’t this kind short. lot sense, made on while to just buy we lined a of of any buyers, opportunity

Neil Malkin

Yes, makes sense.

in efficient. like that next institutionalizing forefront. gen, experience really of than your and or sort model to the have apartment you In been the the leading on Obviously, a resident peers what guys have terms portfolio putting A of been is business more can in But a maybe high focused year different elaborate the portfolio platform, achieving? and margins building. sort making million you the call lot doing of operating of you like obviously technology revenue more along talked way terms XX of see of how just you’re technology Can period. over on talk sort the of the apartment you about or rise three impacting beyond about technology terms You of maturation million XX just you things potential that to with increases? the other

Charles Young

that how the Yes, great what single smart This evolve core home introducing self we’ve question. do of video terms our I the this us allow base we early able thermostat residents Early homes. doorbells, lot to think deal and to more side and that kind markets. the that on been our control been more convenient we’re shows, the is industry, to of adopter that’s business at and to safety that. of in in were And XX,XXX to Charles. for trying professionalizing, Innovation to on, still we obviously front do it able across of of a and we’re the business trying technology is by of manage being to making tour introduce allowed going even safer did to towards technology be residents the XX the that kind with homes in and family do

about maintenance through to the very really both on was it’s them of mobile adoption been maintenance work is really we introduced that our on resident, XXXX coming our Apple innovations It’s It’s had they orders or app. which what that and this downloads. with meeting We’ve One and operate Android mobile of find the us. convenient. around XX,XXX XX% how over want almost that year Well, has helpful. app we the are

the are higher Our through mobile satisfaction scores people when go app.

multiple trips. number of We’re getting lower

and of more efficient. that the types us experience these better we’ll the to things resident continue And that. So make are do makes

up site. the brought ancillary You

I think there. improvements huge is there

to and piloting services constantly As these are that it that What it’s we with, be more we going them, the things we we’ll whether be and innovation can you you and And be is we experimenting are ask done to about, we operating it’s that to really pull services, talk looking lifestyle that and more more to going what’s make residents, for by for, what’s get as that going moving out point, to rolling leasing broadband then it’s your services, led company survey our are will, convenient expanded make residents environment. margins, been our everything able in history if of we’ve know the those in more you and going that that efficient. in to want, us not operationally the our we’ve efficient handyman

Neil Malkin

Great.

you have much. Look you I Thank with had. like very That’s things all lot to of continuing forward in guys. a quarter. the Sounds hopper. work to Great you

Operator

from follow Final today is Nick question please go ahead. a Joseph up from Nick Citi.

Unidentified Analyst

renewal release, sort you’ve grown around. going rent XX%. arguably, It’s larger and years wondering back about, grow that should fundamental haven’t end that which to market guys being everything in and talked on able XX% imposed to just renewal XX% we the wanted your this a talked going just of get Michael, self rate have very had push that a the just been to at for caps don’t growth can we’ve able process you’re be on which the by you standpoint, cap you I have increases? growth you of within you Obviously appreciate just was year. strong. sticking I And think strong if the increases? about to And to come from back about last how imposing that’s you to step the through continued those rent the markets Are talk do

of this given some going constraints you do are the together how that put all of sort regulatory So around?

Dallas Tanner

no it’s Short a cap. Yes, is answer question. good there’s hard

We’re renewals. go our really with just trying to be thoughtful around out how we

of there, field I then and look some to get seeing start And do is back. numbers we’re what we thoughtful really increased over But we’ll side, if we’ve that acceleration. that at renewal house looking we’re are We’re more loss that, you to to we in numbers, that ground lease the $XXX, seeing the to is even obviously, lease house giving that our continuing more you trying by every over had good healthy there on push a mid will are because month, And market teens. able the what’s on of they’re And what pull we out to we the new side to do we’re them. think But rate practically to the right capturing and it market really see capture value may we renewal last that what we this need starting teams, it’s the spread around on we’re the that the to our that market high really side, that is that perceive be go and happening but year, new how and notice through thoughtful. and numbers we what seeing a give by it be in adding then time, there. that the think and has lease, that we’re we see losing residents back also is in $XXX, January

the at so X.X, XX are December. at at trying our numbers, in time, we if January our as be on that’s look continued to push up. And you were And renewal just numbers will And thoughtful we’re continue where we renewal to over that February. accelerate that side to look we

sure where to it up But that expect I push over continue goes find balance. will proud find we’ll been our well how to of make people that thoughtful tough time. it not We’ll try turnover in a into we we’re experience And very side. out So creating a are environment. and on right spiking putting renewal teams a and to as out they’ve

Unidentified Analyst

you rent How the in Do much and a attainable could if extent? Right. you where taken XX%? quote you markets that of much that can’t Right. off How be that lift just sense issues to you there regulatory market? were the have

exactly on adjusted put To would basis, a reasons. at that Yes. looked the upside you actually if what -- be? So you what it

Ernie Freedman

different control, markets, would Minneapolis one rates. not we’re control a quarter now and cap close that fourth to five almost multifamily But at going Minneapolis even fall guys you’re our of resin numbers legislation could full specific than of rates for is there. do XXXX. we’re not with with unlikely Michael for we are we’ve can rent the business, made key I the us no our multifamily not numbers of the Paul suppose allows choose That’s or you majority to what effort be X%. our what years are recently capture though it, are portfolio in rent virtually A going three do stay where do, new there going it do we a St. the conscious that January our bit they’re could our to one we lease shows every to seeing XX%. little California year. see our that in of certainly around turnover business capture it passed when what so legally the in there. very to start lease do has it. loss enacted vast Yes. we’re in have going but they It’s not The to exception

Now allow to certainly a have forward, we gives probably on increase us because might bit. under for for market. to for the should next longer little It at, many rates side, otherwise over residents still flip market continue see can stay going and grow our the if they what volatility that earnings your path years we do renewal they’re a where less point, and

increase. But us it’s the an X% or they’ve time. long win-win X% with residents big a of or market a And kind is. a not for it’s XX% certainly for it’s rate increase is where been So where

playing it’s balancing so certainly that And regulatory much we’re pressures. from there’s not So act. where

the right those But really XXX%. just right it’s the way it’s run to following We’re business think now. we

Unidentified Analyst

around. appreciate I Ernie. you Thanks sticking guys Thanks.

Operator

Q&A today’s concludes This session.

remarks. closing I any So the Dallas back for hand will to call

Dallas Tanner

We everyone’s our quarterly We to with look everyone in you. Thank appreciate and call. next in support speaking quarter. participating forward

Operator

you call. Thank may your your disconnect much now today’s very concludes attendance This lines. .You for

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