Invitation Homes (INVH) 14 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Scott McLaughlin	executive
Dallas Tanner	executive
Charles Young	executive
Jonathan Olsen	executive
Michael Goldsmith	analyst
James Feldman	analyst
Eric Wolfe	analyst
Jeffrey Spector	analyst
Austin Wurschmidt	analyst
Steve Sakwa	analyst
John Pawlowski	analyst
Haendel St. Juste	analyst
Juan Sanabria	analyst
Scott Eisen	executive
Adam Kramer	analyst
Daniel Tricarico	analyst
Brad Heffern	analyst
Keegan Carl	analyst
Anthony Paolone	analyst
Linda Yu Tsai	analyst
Anthony Powell	analyst
Jesse Lederman	analyst
Nicholas Joseph	analyst

Call transcript

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Operator

Greetings, and welcome to the Invitation Homes Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

At this time, I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations. Please go ahead.

Scott McLaughlin

Good morning, and welcome. Eisen, Invitation President Dallas Jon and Financial and from Officer; Chief Olsen, today Officer; Young, Officer. Charles Chief Scott here Homes Tanner, with Executive Chief I'm Investment Chief Operating Officer;

the after our is supplemental sell-side [Operator Relations reference information. www.invh.com. was covering Investor our This remarks, with we XXXX available quarter yesterday today's analysts. conduct question-and-answer document Instructions] a Following our session the prepared of earnings and our website fourth call, on During market closed may we'll section release issued and at

from we make that some Certain statements, and those and other not nonhistorical forward-looking of cause results disclaims to or could and capital the expressly our materially during XXXX our statements these XX-K do relating performance the uncertainties other and any report which time. make actual include obligation outcomes forward-looking uncertainties statements Homes are with filings this to call SEC in future differ risks and indicated. liquidity on resources time to statements Invitation Form so. describe subject annual we may update of We business, to results, financial does and to risks from

measures financial the We discuss certain may also non-GAAP call. during

regarding You in most comparable reconciliations yesterday's can GAAP earnings find including information measures, these measures, additional non-GAAP to the release.

Officer. I'll now turn Executive Tanner, over to Chief the call our Dallas

Dallas Tanner

thanks everyone, and for joining us. morning, Good

that home to genuine allows neighborhood convenience in more Our customers' jobs. safe great and want professional needs easy are want services live they to care. flexibility a a want straightforward. great freely. lease They schools They them with And to and and access

you, to thousands trust with exactly house work have exist that. thanks the the and of readily to residents together these years all a that Today, of the do associates, their the of in weren't hundreds XX or a our hard we us of make home, commitment company who do, this mission to available. thanks thanks a options either they lot of put didn't to and ago,

We marked construction returned of expand year Last new resident start Homes. growth sustainable more country. we to and Invitation across partners nearly recycled history. acquisitions of $XXX while thousands the homeowners. portfolio in experience. company's year homes to in the the It which MLS, a in selling year our a the was profile to executed homebuilder we our on million predominantly in on helped was overall over improve much-needed for many it It homes significant year important was a which milestones we And capital, on X,XXX which of a more one continuing

large We are our venture their property in it residents is their last month's just excited single-family not the Invitation to now this to to to for live what also partners management announcement into industry-leading an residents we owners momentum as operating this, and I'm management for who but means referring the portfolio best on By available our continue are seeking Home. single-family platform to joint asset XXXX that in in investors. expand and best

We us and for our to next to convenience believe expansion empowers It and while margin leap our and services efficiency a leverage manner a scale, savings us in asset residents. our both is here. step accretively for capital-light providing clear increased additional our really professional platform helping further and significant forward. logical well company be as achieve substantial me Let strategic a business property as for management

over asset with manager all the become homes. on property inaugural It and last to began single-family XX,XXX month's agreement

fees from agreement that and unrivaled for We XXXX. compensate drive our expertise. capability, AFFO asset a fairly in of incremental per believe results and management scale meaningful management expect couple we this us to cents share of property This

as such an based on earn also service incentives over financial along we revenues, bundled Internet future smart to may potential from roll time. we're drive the In addition we'll and future, in other this, with out to share the home, operating outsized initiatives and value-added performance of able

the arrangements. inaugural could We be of agreement first such many is what believe this

other pursue to help while strategic thoughtful to through we management us efficient which opportunities, engagement an of even and importantly, resident advantage. technology. greater data improved expect potential information a for us pipeline relationships future expect Most professional about management we build As we professional acquisition grow density, of better additional in create procurement, more become we'll continue as have REIT help and can opportunities use subsectors, we and homes

from often business property continue anchors a of types. their of who contracts. the demand starting average reach financial fundamental and XX-year to just flexibility for across the a possessions our in XXs. new well as surge This experiences younger generations supply favor housing NOI outsized to earnings are believe drive young tailwinds growth of new These will age relative markets well-documented and includes and we prefer our strong meantime, to the REIT as convenience our In over other adults, late resident over lack

a of leasing affordably for substantial It's by versus savings it our is lease this rents markets, that to new residents the in surveys majority as month a savings that see our a from underscore owning. average services in also quarter an Using our less weighted That's today priced. of we expensive data latest say John home home than massive We important residents Burns $X,XXX reflected $XX,XXX fourth our to year. it. our per and a which own over are

credit Already, One score which improved enrolling their of with in value help we have credit savings of about Esusu's home half thousands score program. last credit further average lifetime started residents to our achieve points. these us. improvement enhancing since our This year residents the of free just dollars services, of over completely positive is provide with costs, XX charge, proposition could a their leasing on borrowing of for the reporting

in to we're remain a very great experience our systems, further homeownership. value-add In business, enhance to families we home believe help truly technology we choices regard, residents the summary, getting services and committed we're grow broaden this our excited the and investing we we offer. in to We cost are live our high and In without other tools offer proud about the professional burdens of of continue started. resident and we to the just thrive. meaningfully services And how can individuals

to With our President that, call I'll pass the and Charles on Operating Young, Officer. Chief

Charles Young

Thanks, Dallas.

same-store particular, results resident occupancy teams year. Our were operating fourth service. growth, deliver our and quarter NOI the solid close hard out to a finish worked strong to In

milestones, we portfolio and acquisition Dallas a several management was getting services. to mentioned, return provide In our in patterns And of a professional as lease more year including normal prepared compliance. large XXXX, July growth, it working towards saw new and to seasonality rent third-party of

efficiently do," we often market I'm tell for efforts, to I local teams And results new their our through in effectively walk these out and achievements. attitudes me. onboarded these continue have more in services. Our engaged pleased and very am all I'll stride. "It's residents to we new our now rolled and of grateful see homes, how you this strong detail. Thanks take operating with they desirable what new to

grew of in other X.X%, NOI core debt. an X XX growth quarter the revenues bad consecutive monthly That X.X% year in fourth quarters X.X% in a increase NOI rental and quarter brought year-over-year. same-store by XXXX improvement marks in Same-store XX.X% full of year-over-year driven rate to debt. basis Same-store This was increase average growth our fourth X.X%. bad of in improvement income the point growth

highest average our desirability reach see pleased residents' its move of seeing This also continuing I'm and homes. represents just household of of of the new income indicative and to while, XXXX. to quality, lease during at right direction on compliance an shy $XXX,XXX date, level ratio X.Xx year our high the income-to-rent in time, a the is location same to

expense moderating same-store cost and turnover to administrative maintenance inflation was growth through lease higher working growth expense in as main to tax contrast, year year revenue drivers and backlog, was team's as The drove Full full for a of expense. growth results. Returning testament costs. to and repairs pressures included growth temporary effectively year property the the which our higher while XX.X%. By X.X% came full of expense same-store costs compliance flat ability same-store control insurance XXXX, core our and property XXXX this well

the I'll XXXX. fourth quarter trends in of cover leasing Next,

in our upcoming into As in winter season, prioritized occupancy season. leasing higher head to we leasing slower quarter fourth better we we the the typically peak do as portfolio the position

As grew a occupancy quarter. each the result, same-store average month, XX.X% fourth averaging in

new renewal lease quarter, lease quarter, seasonal expected other X.X% growth addition, was of in representing we've pandemic. the growth the fourth than during seen return while In during highest more rate to the an the trends was normal flat

growth fourth of leasing majority renewals business, this strong a blended substantial As result quarter our X.X%. rent comprise drove a of

off year our We I'll XXXX January in XX.X%. with increase occupancy results. share the to average same-store started an leasing now also

of growth Early turn again X.X%. X.X% a that renewal January rent growth begun comprised of indications to in already have us addition, was growth date. lease believe In rates activity lead to February's rent blended new positive of to and new lease X.X%, negative

Dallas we peak in In as well delivery by we the teams, the later the month experience best homes and industry. leasing enter favorable to that we this are for strong season tailwinds capture provide mentioned to strong the combination, traditional to the with believe our positioned demand and continue our resident

to Officer. I'll Jon Chief now over Olsen, call turn our Financial the

Jonathan Olsen

the and investment-grade-rated an markets; Thanks, following the and topics: Charles. financial update second, for full XXXX balance Today, first, fourth quarter year guidance. and sheet I'll full cover the XXXX; year finally, our results capital on

of our with as ended includes the well that include from the of in $XXX liquidity, credit or in with our X.X% rating capacity I'll XXXX. cash with senior our undrawn during revolving $XXX upgrades We balance million available as in agencies of and $X.X corporate on start team's outlook of sheet, credit all XXXX several at of notes These Leading billion three ratings billion August facility. million we which year. approximately $X issued unrestricted accomplishments off key

our down improved continues adjusted EBITDA beyond. our X.Xx debt goals positioning teams prior. year-end prior from maturity and no December to I'm execution balance achieve strong and our total with a And fixed delivered our sheet as rate to was fixed XXXX, really year of final Our or XXXX. the net offer to reaching XXXX debt swapped by of debt meaningful XX% to debt year of believe to of the rate in as and over pleased our last XX, XX.X% unsecured X.Xx ratio XXXX of total as to

quarter FFO quarter cover XXXX for per year for and an FFO share, now XXXX of an the year-over-year X.X%, fourth increase recent an driven our of $X.XX share, full the the X.X%. the while core fourth year full higher X.X%, of an per increase same-store strong NOIs the by $X.XX $X.XX per share, financial increase $X.XX during was share, were AFFO growth. results and for I'll of was These Core XXXX was and primarily per for was increase quarter results year. X%. AFFO full XXXX

same-store by core thing expense cover The growth This to same-store for a of is same-store X.X% XXXX X.X% last of of is in range our led NOI revenue to to X.X%, range X%. range in and X.X% resulting growth from I'll the core the guidance. growth X.X% in expected expectation

Our similar same-store will to XXXX year our full growth be occupancy revenue core guidance assumes average results. XXXX

blended growth assumes range X% range In continued a expected basis percentage revenue to debt the an same-store rent points. and addition, bad XX XX low to our X% of of improvement high rental as in to in guidance

and range growth of same-store to property higher assumes continue expense with expense fixed X% in expense tax a the XX% XXXX Our growth to growth expense growth in to mid- high-teens. core in insurance guidance

this by first year be moderating the higher in timing than same-store offset growth to in anticipate our half be the the a half. growth NOI expenses. controllable second of partially we From will in expect We perspective,

we guidance All as to range $XXX XXXX brings XXXX, homes from between core on via million $X balance a $X.XX $X.XX full year will our per This of guidance case billion this that base mostly in acquisitions. portfolio partners of our of and homebuilder share. sheet FFO to acquire a assumes and

between earnings to XXXX FFO of $XXX fund night's million of to XXXX per these owned core continuing million. from and the is by guidance to purchases accretively $XXX range capital detailed our last bridge an wholly of in A expected share much midpoint expect release. of dispositions included recycle home We within

full share. Lastly, AFFO XXXX in per a provided of $X.XX $X.XX guidance we year to range

in quarterly share nearly our our increased As per a in last AFFO of growth month, X% XXXX, per $X.XX we dividend to share. by anticipated result

best the lead on proactive. the eye continue we'll plan capital year we to throughout and a convenience experience choices, for closing, Americans track quest accretive home. markets who our our to In millions to close continue a industry prefer single-family long the keep opportunities record to and in We'll lease the being pursue and for the of disciplined recycling, capital prudently provide growth meaningful resident overall and of and

have we line for please the concluded our that, Operator, With open prepared remarks. now questions.

Operator

first [Operator comes Goldsmith from question Instructions] Michael UBS. Our from

Michael Goldsmith

the the levels gives XXXX? through of we on were What and can new of guidance January. That's What spreads And renewal your fourth lease lease renewal guidance. and sort maintain Questions spreads you was move this flat environment? of in assume does of historical the terms kind you as spreads in below quarter. in confidence that negative new in kind

Charles Young

start off, just rate currently is talk in terms bit this Yes, are occupancy. and thanks for around of a question. where Charles, the I'll and little we

the for at a aggressive as purposely landscape was in were in What As leasing a we we pushed fourth decided the mentioned. to September to We up October set and quarter back season. last seeing seasonality, for we occupancy looked us and peak return-to-normal occupancy. get on the signaled I on call,

also a thing. QX We're in going part why debt. turnover where And bad a from it's of off of spike bit coming in lease little we're have a is confidence good cleanup, in which we on compliance the

local are. back, step And where going some to know And that we we exactly we supply best when peak saw it's history season. tells also that's We into pressures. be leasing us full

acceleration we're already and February today, to we're into in XX.X% January position So lean going spring into to is at And we're occupancy what February rate in the seeing now. an leasing in January of on season. into a and side from strength, sitting start

As usually that reminder, on through, steady. that as see have also in of can we around renewals majority a you And our leases lean the rate, we stayed that's XX%. pull as

at is January in which is blend really Our X.X%, healthy.

we back feel 'XX you line with we of pandemic right If And be. acceleration look February, want or historical really 'XX, where to on rates we're 'XX, into in good. pre

February -- leave good I'll what place a -- our Citi put we'll on we'll our March we But give is in So you with when from update in the like an it's and conference. in go with positioning, at and there. occupancy, us

Operator

comes Wells question from Fargo. from Feldman Jamie next Our

James Feldman

what follow-up the clearly lot you surprised are off the weakness I the story how supply in business. some the guess, odds markets, XQ, there just in the at is you mean, and pressure more did rates, with supply new had on much where be see I Or comfort rents. So a markets maybe you than build-to-rent those just have supply just markets are us those and lease more a look you what weakest here thoughts just downside of really too it's the if seasonal? those gives won't your maybe guard, bad? in Kind that you that major of on the give caught the in supply new that get

Charles Young

Yes.

not those that current to Vegas. of occupancy So in level we've our and from that calling of solve seeing things that the comes a we in. so -- bit kind Phoenix, know of that position little highlight. you're areas. of hold can probably also out trying some One, we lean confidence specific I'd can We're we're Two and of for we occupied gotten We're in strength, occupancy.

So the still That's demand great. is what's there.

there. have demand XX.X% of We're still We occupancy to from if that wouldn't been up wasn't seeing demand. low move XX.X% able a strong to

that relative hold, strong think spring, you that -- some into the January our that And to already from of and into February. to the go we're we're a in acceleration portfolio, given when you us as bring to about position same-store So we're up in seeing position build-to-rent also able puts infill strength. really

Operator

Citigroup. comes from Eric question next Wolfe from Our

Eric Wolfe

where can down? how debt you end debt year Or year some guidance, start then you and the and end bad expect that? about get talk in basis to point and over comfortable with your kind step XXX basis XX the points? at around bad you start where is So should of the you points For do there

Jonathan Olsen

Yes, bad question. XXXX. in made reducing strides thanks. debt It's in great a good We

back XXX the If was fourth basis same-store of XXXX, to points. debt you quarter look bad

XXX first year-over-year $XX came which points assistance we backdrop the points last That a improved in saw QX rental basis of in XXXX, to had of X markets XXX we by year-over-year. basis And and improvement quarter we XX by against points year. bad quarter improved So the of the between and points. XXXX XXX basis decreased million fourth between debt that basis

of are We Southern keep terms increasing continue But the of making in the to who were with compliance proportion see lease of of highest a In of move-outs. two also of markets healthy two they're the 'XX, to Atlanta payments. timely and compliance of levels highest fourth residents which allows move-outs, California bad our quarter us markets percentage lease debt. the

part that's the of progress So debt. really to making respect bad with continued we're

the to it's I a point 'XX of debt few out XXX bad important was our the which guidance since 'XX our debt of the debt also results worst that bad quarter result year start actual think impact pandemic. full of QX comparing has outsized one XXXX overall in points, our an our results. with XXXX caused on first That challenges. was Bad basis result

second that really improvements in debt of XXXX. Our And improvement quarter-over-quarter every has quarter in the bad then. since began continued quarter

to us first X part had like backlog. restrictions, were it's to delinquency Southern a in of that bad through year, outsized result not that It's XXXX January kickoff. exist think of beginning restrictions also our the there quarter from note in reasons place that in prevented last longer. California for work debt was at it any I don't the important really the first We

in saw have improvement really us. backlogs and so half And of significant for is we over the eased the first moratorium think year in the I burning last off time, court

first fact half. was than any the point was it despite assuming XXXX what half Bad rent in would -- also was debt XXXX rental was not the in second that half in we out of guidance. that the our first half it less than better significantly assistance of I in the assistance half are

terms enforce you XXXX to allow continue it together, to think in So the to from start this all over execute. going be it's year. improvements we're the of I us. will the And ability us to course of put prepared out area the obviously, year the if leases having steady of major to and go to a make But of focus for our continue

Operator

Our from America. of next question Bank from comes Spector Jeff

Jeffrey Spector

number customer mentioned in you about talk believe you talk what compares I demand rate I month? new guess, this and Can maybe into the you about in X.X%. should then January, when new believe you you you put and talk minus demand? move I would to more prior at can that was then we peak context that normal end how expect the as said into about which of years seasonality leasing, start strength

Charles Young

is Charles. This Yes. No, great question.

As seasonality mentioned, has we returned.

really 'XX, pandemic, about the you During high full it when that in typically we Bowl, if just high That abnormal. 'XX, was seasonal. we're QX happened. go and was demand. were which That's right our back slows really years, And down now, It like pre-pandemic after and are similar demand. 'XX, up occupancy, think we Super type of seeing into picks the QX and

we're in we're good go line are historically, artificially demand. and where of same It's terms we that rent see our growth right compare pandemic, the and We're a early So it When we're in 'XX, back now and but to across what our leasing now we're saw we've into the We seen high. exact spring 'XX, occupancy shape in portfolio. not you you with accelerating during we really levels that the seeing our blended And wanted in going 'XX, season. we're did we there. what to those occupied. place looking the

Operator

Our Markets. from Austin Wurschmidt next from question Capital KeyBanc comes

Austin Wurschmidt

any Charles, kind recall, on below of just if arena drive of your the ended a how on offering here X% maybe -- push I the sending of the up comment have I were been and you steady, bit part And the to have and in occupancy concessions notices build softer renewal rates you little for renewal the back some been quarter. remaining out you to season? traffic mean, X%-plus during

sending how you're playing also So increases as that and year achieving? dynamic to early where is out the what out you're in

Charles Young

as that's Yes. of there. pivoted said, we and occupancy, on we renewals. A couple new on thoughts to One, lease

and sure And "Negotiate." wanted in teams, low we told occupancy in that the to so we while went QX, make out to Xs Xs try We high. we're the keeping

we've that. So done

in in forward As you May and now, Xs look February April we the high in went out the and Xs. low

great if renewals, combination lease of you think of healthy settles back you really where blend And steady in the see about kind we're to at outside look really say all we're historical looking look historically, out. new we'll holding at on of are Again, rates. that But accelerating and the pandemic. shape period these relative when any where that and we

are back we no holidays, portfolio in really Thanksgiving. your Going some around running the prior right concessions to pushed off. them We to now. the took on same-store talked on any about original we then ran to this concessions so prior we last hard We question And -- call. we concessions, November of the

there, still of may or a competition Vegas, a And concessions talked any some build-to-rent but it of our smaller on And that out same-store in be while all there's portfolio December, accelerate where knowing might areas, trying at that, slow there concessions to some around was where all. it in today, more one-off down be outside not and come about there, minimal the Phoenix just if things January. that was demand we

Operator

Our Evercore next ISI. from question comes from Steve Sakwa

Steve Sakwa

if numbers I get the put pivot wanted you of item. thoughts of that guess, growth, I it to the overall and line your expense your implies on expense for to guess, bit a release. expenses the And the real insurance sort little X% in in around something and you math, range rest the just I the estate against commentary taxes to do those X%

be that rate of great. comments the other some growth just items kind would low around So on

Jonathan Olsen

Good question. Thanks, It's Yes. Steve. Jon.

right. you're think I

see through controllable our expectation background will is compliance terms Last things in heavy moderation a doing we're work year our was that lease the in in in of it, growth. to that year at expense look of we very backlog. turnover, terms some all you If the

And a items. year-over-year, don't increases standpoint so those we line sizable anticipate in from comparability seeing

note team more our the R&M are. has more of make fantastic And we business the controllable of think about also the would a we that as operations really portion side we at I feel and over to job efficient. the done time I of house, where good continuing look

of so will, think drive what big our I distance, XXXX. for have is guidance that a owned and for powerful makes our And part to is of time out our also platform entree management our efficiency. I the into ability that, also that not would But to would portfolio. the note efficiency factored more over continue into benefits I point operating third-party

Operator

next Pawlowski Our John comes Green from question Street. from

John Pawlowski

marry gap to year. through opening talk your you expected like with, it X% guidance cost-to-own this sounds that high for I blended then the affordability remarks want Dallas, But of massive cost-to-rent. between -- on to rent low for the spreads the X% versus

rents rent true increases Is platform? So a higher in Or aren't larger sensitivity self-governing push going why I we tenants? your at of to rent much any seeing the on ability is or there clip? spikes among price there guess, a

Dallas Tanner

question. good really Dallas, John,

bit Charles, I a 'XX. have in think, really seeing I demand. compete here, where product it I vacant 'XX any up and would summed do at the year-end, by little think, to we're same echo more, have and like When degradation believe you in not you large, on XXXX, necessarily the market, we traditionally did and well, Charles especially

with feels an We're of a much those $XXX,XXX. It numbers X.Xx, certainly that income qualified us, there the to John, some qualifying throughout to don't not are customer right our disagree, We rent on guidance. now baking more into we're so be what household about that our customer, to the seeing at based necessarily income average average year. we're upside ratios could

luxury the rate. last the had putting thinking pressure tailwinds few about we've think years I of massive on

line more February, least going seasonality to here early in We're in be We curve. are pre at 'XX, going with sitting in view years traditional the to to pandemic. see

'XX. out positives we more though, into we call are go have a full I think your the to necessarily portfolio as question,

in We have far way a sophisticated that demand. that customer that's more and the we're we more capture qualified

for I of So into macro-wise want as do also All in fact we approach. be that equal, a modestly head of the aggressive just being our the sort our chances the like be slowing year. country and things we growth to sort sensitive are we to in environment

I so sitting we're year. And like the where with

I think Charles summed an that is goal you're right deliver. well out it and controls we perspective, go And our sure from to make to execute, cost think I occupancy sort manage and up that be into out It's have throughout point just tell. to get too peak could of through sense in we We'll and there demand more the market the the summer. better early year. a as

Operator

from comes question Next Haendel St.

Juste from Mizuho Securities.

Haendel St. Juste

property management Dallas, I on platform. guess, my the is question

many weren't The fees year more should of think business, expecting. the over I'm for for sensitive thinking perception sector. So of for the and charge the be this $X.XX might includes -- are clearly charging in able that But you're you this Starwood us curious from is sizing ability how the about about maybe opportunity. how we guide the what a political very opportunity, the the scale term and it risk about to to this near

apartment The of class action REITs lawsuit management revenue allegedly sharing are facing or sharing over information.

scrutiny. face season incremental ahead sure of political will this with us, subsector I'm So

opportunity, So opportunity the maybe up of just and scale risks. about to it the the again high-level some how thinking you're the pricing,

Dallas Tanner

Haendel. Thanks,

space think really and of managing except I'd the look experience that There of I place job good us multifamily, management public for that and do professional a if back step take creating and first, are sector, has sort for scale a couple achieve, predictability you yet operators. private has single-family and -- larger to of services I the both decades. think at So rental a been in in what wonderful companies,

rental time been methodical over out you to be single-family to is we goal an for doing reason I adverse so. our to other of on way think the think in approach is to owners One and in but and I behalf. a ability appropriately, which would deliberate our this called our very has efficiencies drive there do for would be do it what purposeful professional

that this we've starts as outset last and for sector for professional the the drive as you talked develop clear about we we've can much We think quarters believe at been of is customers our the that our and I size over and scale cost of from So the down to believe provide ancillary need cost a but opportunities and help living scale. people, better pretty you platform meaningful. the conferences couple that of services

so we I a with our we opportunities and go for also have that those think our compounding we and in as large, will and that capital, well. that already will for procure portfolio our us, residents professional to time, for and size out by price effect be us to But work And enjoy want that can efficiencies customers. over beneficial create professional

of We terms capital earnings time our of and wouldn't this scale shareholder In effective kind at and the But over those we it to not to for our of it could scale. business shareholders. factors, doing want be professional in an for that looking company work scale. in with wasn't small what way if look, we're do create of

get we're us are That And learn those expansion. going in can future our drive would to better actually services. on I efficiencies I whole in And pipelines becomes, as It gets you as what services allow deliver assets those today, for opportunity for our inform of creative further scale opportunities how comment the provide those lot can how think that doing. on market well on a I make will a our heck at look two better growth. The the over ultimately, markets obviously businesses. is ultimately good we last can manager time efficiencies believe, to of us itself it we about into are and own more of now tens of we platform platform certainly drive we of economies how thousands residents, and efficient And enhance have more to a us portfolios to margin more of our of we intel have units.

Operator

from from Markets. BMO comes question Sanabria next Juan Capital Our

Juan Sanabria

Just a the on question acquisitions.

You kind so out. some of down previously issues, running or some debt the freeing-up with of portfolios for talked wearing maybe maturity of caps about

start on Just seeing year. curious the to the opportunity you're acquisition set on portfolio what

Scott Eisen

It's people obviously, dialogue Thanks now, Scott opportunities. the with for about the market right we various Eisen. Look, in in are question.

come cheap I that flow. And seeing few think for owners portfolios opportunities think fixed think on on accretive that more is their are opportunities. are I to if out people acquisitions very think, way. us. out on that us, ago there And was we negative growth interesting some looking explore that be what are are never people cash looking options we're potentially years where it. at opportunities, there of there It I our to clearly, is some could and those clear we now to debt breakeven could And there floating a

Operator

Our Kramer next from question Adam Morgan comes from Stanley.

Adam Kramer

management, bridge Just synergies from it wanted the of of back $X.XX managing or to expense other that the savings included like formal homes owned any portfolio. or to not XX,XXX kind the seems of kind from from third-party about tailwind only ask in the benefit you kind the the and of of that's guidance to the midpoint

just the the year in this of kind maybe And portfolio? maybe exactly in kind So step little that rest of additional for to of again, of then the taking $X.XX. the what bit bigger I picture, back, a what adding managed each of terms a is opportunity homes wanted ask to about maybe is

Jonathan Olsen

question. a It's Thanks, That's Adam. Jon. great

clear, to those manage bridge, in homes. just of management will cost I to the incremental additional to earn incur XX,XXX think, expect net on management the that we is net fees firstly, asset the property that we the the based $X.XX we that and contribution outlined be

could those about, as manage not opportunity distance, what and the guidance. time we believe would say be over which gains I are talked will with this owned yes, us we as efficiency we portfolio. to into As our enhance the efficiency far that factored our allow that

out for incremental which and we how we portfolio we to, model, we vary to gearing us those by to to do adjust I are our distance, figure going think take time the and reality about are opportunity of ways drive for third-party is advantage owners. think both the going opportunities how how do market, scale, over and do that

number to what achieve best here the would since for to in value it And which of sizable our do, business. down As customers drive We're be for the and say that's this is inbounds could platform performance. financial better for. operational what and will I here portfolios far we're our stakeholders as a by from exploring leverage doing interested transaction, we've the owners line, tell. time of I what ways think been have in announced there we

Operator

next from Scotiabank. Tricarico from question comes Our Daniel

Daniel Tricarico

believe Where what today? the ones. what the few rent far. year? Another related the this a to have portfolio lease of guidance beginning the quick the detail you was if And growth for at don't question, embedded is the market you've But earn-in given year? revenue it, the loss in so I is

Jonathan Olsen

Yes.

is loss is So And the single lease, about earn-in would X.X%, high X%. say, to then digits. I

Operator

comes Markets. question Heffern from from Capital next Our Brad RBC

Brad Heffern

the years, you talk you guide millage rate. you've tax how Can the property the Obviously, few past approach about on for the year? surprised been

purely offset So this there? does you expect where any valuations this Or is would guide go? to reflect

Jonathan Olsen

are I on as assuming great adjustments talked have improvement in talked tax. we think about, say think, we as we question. how would And ultimately, calls, we've property we millage any about not made about of Yes, in some past terms rates. I that,

of until variety the the are remember the in late report way the of I a we as to able final two we'll as year, actually through to that year. we I more we're "answer" think a warrant. work seeing our what over think somewhat important approach back of fairly do of three learn markets, don't markets. I our we experience be on our couple in years conservative think biggest it's sort And taking last

be years. not what think been And to mindful how want that the going in I So reflected in experience current adjust last we of may that's our to be or that's time. we couple our has and may guide over in reflected of think I

Operator

from next question Research. Wolfe Keegan comes Carl from Our

Keegan Carl

in quarter, which in a Pathway the the gives I believe noticed sold I home So you sold three program. homes total

residents you scaling general, home. give time baked update on potentially sort and buying Just how progress see expectations curious more that of if could for over in you what in are it an

Dallas Tanner

in question. minority great -- partner Pathways the a platform. we're a again, It's and

kind to basically they're behalf. their have cycle that want rate I of to a model and I lot But they've that of in business be sort speak of So think fine-tuning world certainly and been smarter in their develop a been and careful program approach mortgage that, as cautious new selectively the on interest taking deploying time. and get well. to matters. when continued continue side will They've it to add construction the in But that's the homes where over a capital

that. programming I shared ownership things some and know they're like in exploring opportunities

the terms lend of kind products want and getting we're on might where bit categories the we and view of partner the lean we of where upside, on themselves So the in. greatest that also sort little as and early a in report terrific how probe deciding more is they and will keen think when the market as going. I certainly And to we in to terms a understand of smarter to wins the them puck have

Operator

comes from Our next Paolone question from JPMorgan. Anthony

Anthony Paolone

of your down lease, are bit, you just wanted but lease spreads seems. flat to to I mentioned a high single-digit to it kind guess, I new a understand, loss

works. is also, and renewal just like which progresses, you that abnormally down? two converge? just the Or to kind new goes trying of I'm between like just wide guys this rent And multifamily. your that just there the numbers, guess, like side So those year up does spread of how fatigue? wondering spread, thought as for, either Like I'm I or kind think,

Charles Young

Charles. So is this

start As in that ourselves about, demand with year capture we here lease we of new shows at here start set the XX.X% February. that can we at talked the to that occupancy up up

always lower back, will acceleration. this good expect goes we shape, the January, capture historically But now, effort. when capture in little And was where up to. occupancy is, summer. our we're go But yes, now right a to you seeing why a we we've already to been. That in to than set But we now shows given see that explained that that. we're conscious we're I think in that. the so the We'll did start And demand

summer where it we occupancy loss our the that really with been also again that's we've still to that slightly spring seeing what's we're pre go try we at said, with holding what in you market. ends But see expect demand. to came down acceleration to February. but And steady And current seeing back January lease, renewal to up. continue confidence pandemic. for gives solving that's on when steady renewal the healthy as will being us That to the we're capture anything rates pretty side and from were into rates, occupancy, We'll

Operator

Our next from question Jefferies. comes Tsai from Linda

Linda Yu Tsai

the is breakdown guide new between the What and in renewal?

Jonathan Olsen

actually guide, the low to We Jon. did what think about we with haven't it's going year, blend Linda, that. the talked And Xs, I for a include stick which we're is high Xs. in

Operator

Barclays. next Our from comes from Anthony Powell question

Anthony Powell

pretty in year? this that market. still seeing guess, your MLS the there? low on change for cap A any question I cap rates you on, Are And outlook remain the rates disposition the at also, X.X%. What's

Dallas Tanner

feels marketplace. And Xs, of low into let Xs, to it most we much It sell on the Scott the to commentary add a depending our the this. much a to -- -- in certainly I'll than continue peers. Certainly, more mid- like our any of kind high back have dispositions we typically, feels expensive can again, MLS home

So homebuyers. for Scott, anything add massive market capital. But a And way think to from to when some subject at that's that that? us given feels accretive you'd like where little we go recycle mortgage that rates with to there's product, bit a to any I of are demand time. very

Scott Eisen

deals. think the rates it, I And potential we national there our in we backlog that Xs, to clearly, of continuing I low are I No, call in community And opportunities them seeing, with add dialogue work we it's growing and buying builders. with we high good cap for full about would a and is where just spread the terms us. consistent And have regional what think we're just partial on of feel opportunities where the think are for that. with Xs on

Operator

Jesse from Zelman. question comes Our Lederman from next

Jesse Lederman

strong the on results. Congrats

from than deliveries, for-sale finding rental XXXX, home homebuyers, market interest like even at being Or challenging to more more it for shifting back becoming selling XXX, is away just estimate given for-sale focus looks XXX you all for What's operators your it kind preventing but the looking a has heating words, In market the of rates? to other from how up? it with compete you. new at are Just Is strong of higher? are in because homebuilders this been? primary more of

Dallas Tanner

question. Good

on color we're I think we between bit can there. more me seeing and give what a little Scott,

is I which think Scott summed grow. to it is continuing pipeline up homebuilder nicely, our

we've the about couple years. over talked this Now of last

XXX. so past or like were XXX-plus. XXX, it This year deliveries was a think our year, ago, I

typically have -- in X%-plus number on some just estimate. throughout currently is schedule We'll partners other schedule, our that will you partners with quoted rates of certainly the that the current happen in what we aren't deliver. Those on in mid-XXXs We and today's year best that environment. the would closeouts to are see opportunities be our cap new

give we're and But the Pulte speaking, more that talk bit terrific a color. a Homes. Now on Scott with strategically can little partnership we have record

that about talking we're And to with to putting in some I number in the or you're evaluate pipeline. we've opportunities. other another our homes I contract, builders to think got a X,XXX media, additions. pipeline about some or yesterday call of Scott, earlier X,XXX continue plus We mentioned close under other minus

Scott Eisen

this Scott. I the is are important But is to recognizing partner an institutional continue the at gives The look regular table doing to ability for with then Yes, line to it's -- just is grow. and business clear across add here clearly of sales time, this us their that that them builders that consumers. in an our only they the would they they And thing having at dialogue the thing that only them. same individual way have the like they're that

company. grow for continue to just them for for opportunity incremental another for and to incremental an opportunities we deliveries auto buyer fleet demand that their platform like it provide us And does of and are that to to our to grow give continue housing them to Think and sales us to to well. an America have to somebody be with as

Operator

ISI. comes Steve from Our Sakwa from Evercore next question

Steve Sakwa

controllable provide just incur Jon, and you I within you just did circle sort of to more a expenses on little those 'XX if could wanted back see bit elevated results, for what a at color. delinquencies? the the cost Maybe rate. get some to maybe I'm into of and for of that move-out the growth extra that maybe 'XX just controllable savings quantification expenses moving might single-digit down trying this low and how those that feel all keep

Jonathan Olsen

about think the think last impact an that -- I it's drivers a year. the occupancy you at P&L, there's how the Steve, of bit Yes, the when delinquency flows main line. obviously backlog We through talked about

things primary I areas other to sort is property-level expense, the admin our like are the think the really property legal lease. through of which process of cost terms enforcing manage the of

that over growth is substantial other OpEx. area. 'XX turn 'XX area of seen And the sort in You've in

these turns we expensive can turns be about, way work of they to of our take and we've number As delinquency XX% some those from more get homes through. back move-outs, can that talked days when longer some had

chop. was we think some anticipate important versus got improve stabilizing. costs is costs Really, I year-over-year think that I our when you look We're the year. at don't But the to going to experience that are that but what thing down, going last increases. upon are still 'XX those not substantial to it's work wood try 'XX, we've to

Operator

Wolfe from next Our Citigroup. question Eric comes from

Nicholas Joseph

here It's with Nick Eric.

to the another Just the Or for with to to in get year thoughts billion loan a on plans into early next place question put swaps was it $X.X Will refinance you term your would you XXXX? hoping sheet, new year. longer-term look for early maturing extend the quick on debt? balance

Jonathan Olsen

Yes. loan XXXX. start in that, Great question. that maturity term by pointing off is out final would January I of

our be to going reaching not recast that dialogue. our debt to a the event. we might dialogue the XXXX. recast. contemplate XXXX. don't We're market to with have look be monitor are forma it And having We time, to now at loan, prior between to look goal based our year we We'll rates in like. continue on swap is any adjust our the as maturity sometime And the facility and term appropriate it's group. at we'll pro bank to So next already to summer final timing what that respect also schedule maturity book With debt going of

the that of to we there. current And watch on bank term capital done, on both in market, with But going we'll today. But very opportunistic, I our and work our relationship to dialogue. new may with grand our the feel comfortable price be debt comes, not when through comfortable we -- is our will love group, constant capital. with access always appropriate be the do loan which time in scheme, what We stay our say we'll we're cost from patient, to very that way move we've feel

Operator

comes from Our Feldman Wells Jamie next question Fargo. from

James Feldman

exactly sticking mean, this year? And you of you year this sheet as and think loan well. in swaps guidance a are balance can with debt what I I assuming Can at I in the what's guidance? some you have terms you the question, in debt end paydowns know talk expiring secured early. of about down the just pay

Jonathan Olsen

Sure.

bonds So X $XXX million weren't guidance, you for XXXX months outstanding place that in in in of XXXX. of have

million That the XXXX-X freely prepayable did of deal any $X.XX. at on represent last in about own, would, securitization year. you're we then August time. $XXX So And right, that is its absolutely

cash deal to bond that hand. on or that cash we paying We because use following gives flexibility either retire on debt for off even It growth held having debt that to us have excess opportunities. off like

current on swapped on X.X% market, about at which that compare securitization, around earning X.XX%. And I average it's those balances. we're to can you which point out we've XXXX-X excess important is that to think the rate In cash that the

our our in we when based timing that off So extrapolating sort potentially is of assumption market think paying could guidance the pivot yields for be what to we debt. money and the of curve forward on would

the the Now going response going said to to watch do going we're think we're to just reality the exactly the we're I in is is which and prior what what gives. take I market to question, market

path specific a want forward in a the we is that But that's how got bridge. prescriptive. don't the sense to give I to $X.XX So

Operator

Street. Pawlowski Our comes Green from John from question next

John Pawlowski

your sorry math I question, I'm still understand belabor sure loss to Jon, guidance, to this revenue lease but growth growth and make to on rent I'm confused. want guys' earn-in. I

you the know benefit the But then high X%, of get portion earn-in X.X% midpoint to only then guidance, low single So of you if X%. the revenue the you is just digits. strip capture bad take out that, to X%. say loss a lease is of debt, you and I you

lease So how get do misunderstanding your and you kind organic well not growth above X% loss guys' of earn-in Am this I revenue to year? definition? for

Jonathan Olsen

I John. No, you're think misunderstanding don't

I negative, in potential both we It's are fact There's here early a a reason guidance the in early because it right? we're a variety that in reflects what range and the that think present year. February. of outcomes, is positive there

renewal And so entering are growth are cognizant rent. I think the more kind between into new normal a rent fact market of feels and that we we of what like environment

develops. how our model the we for of sort wait as is how experience Dallas upside there. as said pre-pandemic going bit there think, earlier, and the time. to a over the the certainly for of going curve we're develop year think at looking But are We But see is potential to I little

Operator

question comes Our Sanabria Capital next BMO Juan from Markets. from

Juan Sanabria

maybe questions And in relative assuming home per rate of terms follow-up trend expect a CapEx do year would of pre turnover guidance. would or pandemic? on this you couple a last just Just guidance. turn secondly how to are be on One then you year relative to What growth to basis? be

Jonathan Olsen

Jon. It's Juan. Thanks,

we from articulated same turnover in compliance for we to we true to the that our of turnover The what the still the similar think think to I sort a be of to we've similar is through. it backlog holds perspective, tail got I occupancy in lease reality XXXX, saw guide, XXXX. expect when work generally

rent, is scheme, turnover favorable duration I was is really I of affordability lower propensity strong comfortable But than and rate. emblematic pandemic. at picture of going a to that, homeownership relative we continue it of to backdrop, that renewal. With to And an think stay CapEx, we feel much to that inflationary demand the think sort with grow the sort pre of in should to grand respect a trending that's think likelihood very benefit of that fact

into to not reinvest good our I it about we is over asset job an particularly we and when where have time. making then done think capital rates in can those that in are does assets we And a that smart found end-user newer decisions places sell where management pencil, portfolio. capital make to cap a does at into inside less going market it into have CapEx homes incredibly demand and of X% what liquid sense recycle

Operator

next Our from question from Research. comes Wolfe Keegan Carl

Keegan Carl

Just curious, did you was assets guidance from have Los any area if in Angeles in that your recent greater the at your And impact so, flooding? embedded all? material

Charles Young

Yes, this is Charles.

the that impacted. atmospheric still But river majority in that You're process really is was assessing. of not of fully hit early vast our referring the we're California. to event portfolio the Look, indications

many not They're work some orders. have of We're them. We through that getting them.

stuff with and at major. really you to trees but teams our this. landscaping it's like And around are stuff imagine, roof great can nothing As responding some

So we're as issue. it assessing, but major we a don't see being

Operator

question from comes from next Goldsmith UBS. Michael Our

Michael Goldsmith

more you're months. have in the difference Is that occupancy the build-to-rent the winter a in bit your Earlier call, little between product point And dissimilar that done in Are infill. what through build-to-rent-type then you've talked a seeing expecting in your pushing product? competition versus made prior the years? to separately, the you you and performance about infill you

Charles Young

spring the early especially what done, on seasonal go and summer. you operate take we've the occupancy to as and is and more Pushing experience the into way of the as spring, a the I'll in going in second what's winter picks where first. is best the we've typically business, Yes, then portfolio lower it into question up the demand had in winter

renewals, Getting we steady full do, strength of important it's of majority And the demand which that in rent lease great to is throughout period growth. pretty new is year. capture gives that position it the what's what us because of the about

we we're that did the see And with is in during that is what line we've this now we're done to So pattern. historically not recognizing what pandemic, back pattern. seasonal seasonal

get more job look, the of majority first an there's a is competing. XX momentum homes project driving take that for going. may project you to kind to when of portfolios, be of a XXX And time moment or closer aggressive And in of your lease-up. those XXX, over that acquired infill, it's that you the that question, that years stance down going the centers. at to kind get Going are distance are like into within the once, be a portfolio to It's we've point really typically My build-to-rent further our majority is out. build-to-rent

us. what Now or other a you an homes one to MSA that question, community number we time and that it out the where on there, we're But could when an projects it projects effect, make how they get to there. have where could hitting really smart this a that and there balance we of especially we around when growth are at that best to has sure occupancy. are occupied and pick of build-to-rent to And second capturing place have we we're get recognize pushing to wanted part make rent we we're sure the a got may

it's to understanding that to. these the because amenities team, for and they're it. fantastic a what But term, come pay the something we're build-to-rent it's attention resident, So knows going are. long that Scott they're with great projects experience

of over For repair capital be less maintenance the and time. going us, on period short it's to

on So get to opportunities this. this you that with build-to-rent projects is like the a balance take

Operator

closing This I question-and-answer back like completes for to session. any remarks. to Tanner conference the turn our now would Dallas

Dallas Tanner

we can any everyone out a Jon you. reach a if you or South We couple has of questions much. Please forward with hope We weeks. Thank in to day. in seeing look many very Florida of you Scott help. Thank great to

Operator

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

now may disconnect. You

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