Invitation Homes (INVH) 1 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Scott McLaughlin	executive
Dallas Tanner	executive
Charles Young	executive
Jonathan Olsen	executive
Michael Goldsmith	analyst
Eric Wolfe	analyst
Brad Heffern	analyst
Steve Sakwa	analyst
Austin Wurschmidt	analyst
Scott Eisen	executive
Juan Sanabria	analyst
John Pawlowski	analyst
James Feldman	analyst
Haendel St. Juste	analyst
Joshua Dennerlein	analyst
Adam Kramer	analyst
Daniel Tricarico	analyst
Jesse Lederman	analyst
Michael Gorman	analyst
Linda Yu Tsai	analyst
Conor Peaks	analyst
Buck Horne	analyst

Call transcript

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Operator

Greetings and welcome to the Invitation Homes First Quarter 2024 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

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

our Following our prepared analysts. we'll conduct Instructions]. covering session a [Operator sell-side question-and-answer remarks, with

website earnings available section issued During the yesterday we XXXX market our www.invh.com. on information. Relations supplemental at closed first reference call, and our This is the after of Investor today's quarter and may release document was

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

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

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

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

Dallas Tanner

joining for Good and us. you morning, thank everyone

great season. revenue peak we with growth. a growth occupancy, quarter as believe rent XXXX and our start accelerating off first average core results begin leasing in puts In us We strong kicked teams same-store our same-store NOI and a this the high position Our great to year. reflect particular, same-store

X,XXX property we only other Centerbridge to in well XX,XXX-home over our operating said, including success you leasing asset announcement When investors, Starwood management we've was beginning. more in anticipated Quarterra, our platform, being homes night's Less onto management later, signed our through That agreement the growth that months just and that added as last high-quality with you we February, this March. with our year. X than and of venture Nuveen, told our agreement one aspect with as we joint spoke is of and

each are to our and partners these respective honored We capabilities. operating work coast-to-coast with highly of and management value who management best-in-class expertise SFR

We of the this journey grow the believe offers a business, services as benefits Invitation many just beginning management professional our which, to Homes. to is and reminder,

are with we and attractive commensurate First, an have asset expertise our scale. unmatched property fees that management and

manner Second, earnings to opportunity a we're potentially later grow in these capital-light able date. a at to including acquire through homes the

the the our operate insight which costs Third, power leverage spreading we fourth, We our own by help operational larger from a and residents we deeper combined manager. of And can develop us partners we improving their across choosing further density homes homes, believe benefit Homes scale via of and as collect, to number markets. thereby Invitation our our and data better margins. also

asset management turn and our buy our vast at amenities and retail pricing potential receive our to In agreements. a we for our from Internet in addition along savings expertise, markets staffing pricing. advantageous utilizing and in signature we to Genuine our the provide leasing with our ProCare to network, discount Care our in residents bundle and bulk value-add our services, that can access example, offer, of to partners direct optimization operating, Residents getting realize vendor including, several

Jacksonville on new Meritage relationships, growing to with under XXX Dream D.R. contract growth product of including our area We We're last of that with Nashville, them Horton, any primarily our Homes later several month free roughly to announced on I build return for our that's previously today. development list Charlotte, X% in expected risk year. targets stated is homebuilders these remains large line effectively us Another yield pipeline. added Finders us a remind in deliveries which of we start with a approximately cap and new this of Homes. to homes acquisitions Underwritten to cost, are rates will and you

country, sheet and to supply and achieving in are seen the Given us growth our superior of a of needed delivered in we the cap last total risk-adjusted the homebuilders to what also with We're protect pricing, are far with believe dynamic and the environment largest land much best we've helping communities serve. rates, create from return. proud couple risks in we of inherent cost contracts years partnering the the the designed while volatility in we development housing and through on-balance while new materials the interest

of at up, while all thanks to seamlessly we're our time, teams continuing and new our wrap onto our how year. to with operating my To of off for started this the thousands I deliver pleased results. have their platform, hard homes and extend work outstanding same bringing leasing associates

sustain our continued we ahead, our stakeholders for year. we to remainder ability excited growth As we're leverage this operational our of drive as look the excellence strategic momentum to by approach through and the

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

Charles Young

Thank Dallas. you,

business great all homes for into managed maintenance bringing quarter, during shined and operations. delivering peak while preparing season, the our third-party XX,XXX leasing and really associates the our Our results first

high part During believe customers to accelerated with to our the We year. sustainable longer lease growth NOI us. continue a see simple all throughout first quarter, is stay we formula and growth this of rent occupancy, maintained the

by income, a XX-basis XX.X% value-add monthly driven in we improvement results operating NOI first the Fundamentals X.X% by quarter. first average and performance Same-store to teams, offerings. our cover remain the grew rate growth year-over-year, and X.X% let's grew detail. Now our core in of an in great X.X%, related revenues year-over-year of same-store same-store strong bad thanks to our in more other primarily increase debt rental quarter point

an result the decrease operating year-over-year. in X.X% increased a controllable expenses XX.X% quarter costs. and X.X% fixed expenses core Same-store in in was first increase This of a

expenses, of taxes. property largest the driver fixed For increase the was

property accrual during in the expense X we due in to of As of quarters and first before the year growth be this tax to first the year, higher taxes we X anticipated quarter. fourth property expect last normalizing previously the under of discussed, quarters

Meanwhile, progress from quarter fourth reduction particular controllable X.X% to year-over-year is control on more X.X% XXXX down our quarter XXXX. the we've This prepandemic flat turnover in effort part was pleased side year's goods as X.X% through last as to a of as returning markets continue we're to to moderate our of first turnover well backlog. controllable our of see In strong debt. Of is teams of quarter cost as results. made see the in bad costs. the same-store compliance controllable This with costs reduction quarter expenses of rate of reflected X.X% in first expenses, in well normal to our in Yet great by our year-over-year. first due note, expense to lease working levels that was regard, the it's to

points is been bad As as approximately a reminder, industry-leading revenues, of for has debt rental percentage normal SFR among a historically XX of peers. to XX our which gross us basis

is household have markets, XX X.Xx. average a high remain few still our we now over of work the months approximately continued by our we year, in encouraged income whose some our of the while new bringing ahead, to ratio last income-to-rent quality $XXX,XXX average Looking do a residents, to

occupancy grew cover the to blended same-store XX.X%. first let's growth Now new Renewals X.X% rent in year-over-year. in trends first drove the Average leases X.X%. our leasing quarter. remained X.X% increased at quarter strong and This

in growth future has started XX.X%. while X.X% to shape Our continue generally April. prepare preliminary great efforts April remaining season markets Average on rent and their XXXX rate steady their new off to service in occupancy built. to the leasing and delivering peak in in our capture them momentum occupancy as growth X.X%, held operational our with well. results accelerated growth blended rent thank seeing we fundamentals excellence, and Renewal for we're focus to strong show believe resident in for diligent we I'd position our accelerated and a at growth. have plan With demand great teams like lease of X%, along the again we're favor, our

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

Jonathan Olsen

results rated balance investment-grade and Today, for everyone. cover Charles morning, quarter our I'll line before questions. the good first the XXXX, on financial opening for our Thanks, sheet an update by followed

NOI. I'll XX,XXX we home per made an results. contribution to portfolio start financial offset resources Core The also quarter due increase with results mid-January. in expense, first in reflect to we increase These drove considerable management we These included growth. to revenues statement XXXX and future FFO our the earned by and to strong. $X.XX year-over-year the core started quarter Meanwhile, respectively. fee items the partially in share, FFO managing fees from support were X.X% of pleased increased higher of investments to us help primarily $X.XX in property AFFO year anticipated and efforts We're begin prepare help our appreciate year-over-year X.X% our income the results for with share. these management per on associates under are our first

liquidity had now our billion credit unrestricted Turning in cash combination through quarter on balance end over of sheet. investment-grade and $X.X at revolving We a rated first undrawn available the facility. capacity our to of the

and slightly ratio XX, was our below just debt down X.Xx as Xx range. net March XX adjusted Our XX-month from targeted EBITDA to trailing December X.Xx X.Xx of at to XXXX,

We until have final no debt maturity XXXX. reaching

to our addition, our rate total over is XX% unsecured. In debt swapped of fixed fixed is debt or of and total XX.X% rate

received we sheet. week, our strength the balance This validation further of of

announcement company Moody's Fitch both with flat BaaX, Specifically, investment-grade and that I'm our BaaX recently the joining ratings. referring S&P from to BBB upgraded to

arise. for we Looking our enhances ratings this upgrade compelling forward, when further opportunities positioning believe

quality balance Homes ever new our believe phase systems more actionable opportunities our of of beginning a in they've In summary, could we are and exciting talent Invitation the of which best at the been. business is and become sheet, the

which for All the us our residents. path puts believe a from this and best we experience stockholders possible deliver our can outsized of to we for continue results on

line our Operator, That concludes remarks. prepared open for please the questions.

Operator

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

Michael Goldsmith

rate In the starting to push Bowl, about the so around Super past, talked mid-February. you've

take So March, -- are going before, recent like took kind in maybe that a back year, this in comment it of back step accelerated your it a these maybe they seems to April. step rates

the of which that of rent a lease of to in seems some sequential where kind was on during now, into April? of trajectory just was any So get influencing the is pace. new kind and choppiness, if there trends it resulted trying the the And has of quarter maybe sense factors it

Charles Young

This Sure. Look, acceleration quarter. a Appreciate seen healthy the we've through is question. really Charles. the

were we lease We got going to as we that year last last out we quarter, some really to did solved As for we about spiked. we had exactly healthy. XX.X% had what XX.X% from of turnover occupancy We the coming up do. talked is quarter, said occupancy for compliance which

for we then in started you're about pushing And as January rates February jump. to anticipation in talking

went growth. from at January acceleration Xs, into into May. The X, over lease the all we're that's to basis really in March XX.X% last to we So rent we up also points, anticipated. high February, XXX accelerated we're April the new as high still push X here months though Xs. is, And blend looking to further occupied What's and has great the seeing continue

up of nicely peak year So demand time the really ourselves comes to season. we set capture this that in

setting kind getting of advantage us expected. occupied. ourself if demand in And take typical that's that by front us there is haven't what the was we seen of from seasonality any of the to up anything, was really it So just dislocation

Operator

next Eric from Our Citi. comes from Wolfe question

Eric Wolfe

get questions. then day the and other up generated Journal the you Street regulatory brought again more this question Wall but lot know asked I article some a risk

control, So the limits was perspective, that or you're would that? from think affordability I ownership housing curious going what what and affordability you If just play role improve think on it's housing would are you rent advocating do help to for issues. in what your you not

Dallas Tanner

of really the it due is worse, supply. mortgage of lack keeps housing rates higher And bit particularly Yes, appreciate question. a getting high country generally. cost to Clearly, in the the and

the communities our the best new to include working homebuilder that is for of households really which market, about you of what XX X/X sale partners, often there's something can in for so decades. been many It's start them do we rent And encourage helping we're mix And it's that that country. our a and million Now the into with housing. of remember, to new somewhere. have way for U.S. lease supply coming large is that why

of flexibility again a cost to choice and it's time significantly owing we so that learn that And a they and us time our tell important also it's this remember at leasing -- it. want than they lower And from residents, home.

lease markets month today, West be in it look cheaper than at a Seattle of markets to Southern almost or $X,XXX would home our you like California to it's upwards in If Coast own. a

John -- restrict lot seems need data but a or companies sort Burns of ours option for the really So to like counterproductive. this well desired It's of a attempts be covers misguided. consumers for a being also to

I that far bills anti-professional the to management you that both think article get that's anti-leasing as in none and very why noted levels. date national and state of actually at mentioned,

So narrative to a that it's point companies regardless -- are at thing that housing try providing of solutions. the kind of fingers to populous

in the to And proactive that to at market housing you've and trying with associations. come seen the and provide access We additional We're going this private candidly, legislation levels through states the positive in trade units. into work for to work create to continue much really and dwelling our are very to some housing more state effectively. debate local go capital

be goal, we're over be that And announced And not script, some which as and our the best with and So to over. that's working country the our we're of is brightest that. of part narrative, new to we've doing to over market stop. and into would the in going in supply bring

Operator

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

Brad Heffern

you on great. earnings? new but of for the I agreements contribution changing guidance be Jon, any some from not the you're to that obviously is the just give would can third-party know scale context sort that there incremental management

Jonathan Olsen

Sure.

Included that, announced is both Starwood out, we that had point the we note in as management. Nuveen the The that contribution not there. of Upward $X.XX it's you I So earnings to third-party guided important in to guide from yesterday America agreements. think agreement were and

this also scheduled of onboarded think sometime onboarded portfolio, is only that America has I Starwood the the in it's and third the portfolio stage, those to to X at just important note, portfolios Upward in X mid-May Nuveen been quarter. then be however,

to think as the think we get dates, I is. have into what insight potential onboarding the visibility we portfolios homes into we of those approach specific and metrics those So better we'll better and better operating

think time approach we'll We're thus on. under what to get some very But time we've those early we we as onboarding upside actually tell. those So see portfolios, more will guided our far. still I there's managing and belt dates if

Operator

Steve ISI. question next Our from Evercore comes Sakwa from

Steve Sakwa

the for if July kind know don't I Charles, on April, May, that the increases had you June out maybe had maybe gone of touched renewal and even period.

So any commentary around that would be great.

Charles Young

mid-Xs, We it. the which ended out accelerating all June April with at for we and mentioned had I went April maybe Yes. of May and just from was was similar, from did up which lower X.X%, slightly we in QX. what

back So on look historical any still healthy means. you as

Operator

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

Austin Wurschmidt

into about other additional activity. Just have you of transaction broadly and significant And to more that or you enough in whether hit a in the the hoping kind think guidance. I related there's looking entrance year just pipeline provide And the question some enter. could was Nashville, then acquisition at more to markets activity new market you're around comments full not to whether transaction

Dallas Tanner

marketplace. a this transaction I'll into -- that significant start and us a we anything part I'll like allowed more it. I'll But Nashville to that Dallas. to of then get first he'd ask Yes. in Scott last back of add and to that scale went foremost, summer, as is amount

can what I real of in give the opportunities. think ground Scott on the with terms color seeing time we're you more

And I having remember, last lumpy. No active times discussions. And it's looking at And construction comes we've extremely we think new guidance change ranges. good seen the the different you've months that think in been about with we're that are in at year. It very we I XX,XXX M&A of units X our feel the the there. on. some with we and certainly brought building,

business that One maybe the highlight the about they've I'll in pure-play is we've with third-party really done, it One thing then nature. option management the to is X think if is, a down us, road. take you out at just exciting and first Scott I what's a XPM very been I an different look transactions want to for all hand over for

thinking new of us last partner. expansion bought The construction in acquiring and actually portfolio with further we And that and that was into about home particular relationship professional homebuilder. capital other capital the management situation, professional with contracts a both a

more and clear clear gives participating ] so sort want we're to scale incentives -- on of bit so And portfolio you what obviously that just that the grow stack, in of also it do on period Scott, give particular from equity perspective? [ in a some how a to seeing little view color line speak, maybe over a to but a time. business of us and

Scott Eisen

Sure. markets. just example agreements Nashville both that in is some And I where we're we as good and also a mean adding management buying market, homes well. about questions address to are new your communities third-party that through

market something clearly, to And and grow hope undersize in we're just run scale to near where an time. we example the good but so that we're trying take some of we more were there the before that's over getting

We going and the get exposed we're example, also eyeing San Austin hoping management have Antonio, we're and that see to -- in more through to that contracts as markets like contacts other and markets. third-party we're for to

but some with that doing Meritage. to relationships some builders table the adding got deals builder We're stable. We're the here. to other We've I and done that the with In add continue we're Pulte homebuilders. adding also addition, is with one would lot historically to Lennar we we've Obviously, we're midsize expand deals national doing thing more a that some midsize with dialogue our and Horton.

give the helping and can supply, and communities know of with and rent We some about create where working to new retail customers. the Dallas we homes add purchased confidence as talked buy some to that to earlier we're the be of continue start homebuilders for those have homes them build products by more of

part to more continue our create adding obviously, to do to our it's pipeline. we So supply acquisition backlog and and

Operator

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

Juan Sanabria

XPM on theme. sticking Just the

regulation, for the say, the just pricing. headlines of add, Just curious or metric risks And negative take to? the manage some the we've accretion under size if around assets homes the as more for and overall whatever that could previous there basic obviously about seen in about about about concern like on threats to or would you guys any the industry? or just of there you'd share how third-party that think whatever you you on let's you you there you X on any talk you or be back what Is industry Is question all math to collusion going XX,XXX and for responsibility -- system could pricing come be it's it opportunity.

Dallas Tanner

ways. Juan, this Jon, And thanks them few a I'm I going feel Look, and over for your -- we about and try then and hit different add free over to over. anything on the would think to to questions. in economics. talk say, I

size You have housing of the U.S. scale footprint. to remember and the

lease million or XXX in that earlier, the about those have households something We XX I million own lease. U.S. today. mentioned of

units. of. amongst are rental operated spread there's X% If single-family Roughly you at least about it, somewhere total million-ish are by call maybe homes we that between, XX are dynamic And call might those that U.S., different I'm the what companies probably capital for that of those XXX,XXX at aware professional XX look the lease. in

other universe to information. on in actually sort of that a access that data out there, are is nobody XX% has the rentals single-family the that So of

one. actually So I opposite think it's no, the

rents available homes like that last information the we our at thinking that company, all and pricing We of data a the decade, and things have publicly own informed and the just data. look information. As for our has around on public listing

out the early. in units like it's for by a professionally as terms It's that being of the internally And identify calling we're we rental. still what I Second, XPM of provider other single-family additional we bring XXX,XXX of scale the service owned, sizing can platform million. sort of but of XX to there's can the owners about really, on mentioned, being

minus and stay to growing business. active or X% our that. of it's So about We would plus love keep

I period you will our going units us own portfolio. tell or you, to the X-month horsepower over even about amount strength X- if the like is tremendous think in a adding XX,XXX of of platform, give

vendors RFPs our for getting efficient You more start customers. capacity our we at us That's with but additional costs try to pricing lean think there, we're have going better same and the get on to our to that in to work our more to about where own spend. time, and out, give working give

means. tens being what really And see XXX,XXX-plus the thousands that so We landscape of we're about or excited maybe currently units.

we bit of the where come the you capital, industry and if like at the office are industry by of similar. sort in to a at And over and investments. look time maybe XX professional we much owned numbers XX% SFR is XX% But expect years, that small keep the decade, family multifamily last people the where expect over multifamily that could multifamily, that one-off is you've XX% growing. seen have little About owned next by in

would we over SFR the Jon, you decades want a to add do couple manner. next grow professional much to that? hopefully anything better to of So expect in

Jonathan Olsen

Yes.

this have right management. brought terms The we other answer think how homes stage is, question of X the share the on about third-party platform thousand think we question. of to can don't at a game, is your every I of rubric that the part the through in shorthand

points price X to over lot time, varies. of of little we're sort are that portfolios remember Market the done suggest there mixes upfront But looking to, ought as be variables a a that. that simplification renovation challenging, think that of important numbers to the degree make of vary, bit right? do a think vary, also we onboard able forward it's that law we I to I large

and more to as help through sort so portfolios to to exercises platform can our time. financial homes about we'll we smart share operating add as line I in have results of bottom they the can position a to we, more potentially much I we think as better much be these way get perform we think how think asset opportunities and actual what a on those management And think shape best at, is and the can look over

Operator

next comes Green from Our Street. John Pawlowski question from

John Pawlowski

Charles is on occupancy view but of have or market question this you you do a Dallas, rents. -- prioritizing I internal an are know guys

so you And have supplied slower clip an more of a do aren't of affordability market think? the than given immigration gap culprit Dallas, some referenced view markets, internal think rents into faster they you Or than is much much, Just is Sunbelt why what in we your the are at growing than we curious you think? the is?

Charles Young

Yes.

I wouldn't look think it I at a culprit. as

historically you the COVID go trending years, we're on of both where been lease and above renewals. If outside new we've back

on blended people we've that and rate of we're to ever value our underestimate NOI been. So growth. the occupied more And a occupancy than

were it's slowdown. And markets we're humming a But seeing talked reality couple coming really it's certain of during look, off your the back earth Phoenix little a back the think a being healthy. those Vegas COVID, point, so is, kind feels are and though, of about. just there they're bit, -- that really To to I it to and And that of we've pandemic coming like still normal seasonality.

humming the near a for now rate gotten new them them I things in has and we'll kind been move as occupied the side positive expect long see to are that we've settling down. time. lease more start future Florida of on

seeing look to little are the rates. still slowdown our Orlando bit is a and last over saw now, if at But Tampa strong really of Florida relative South of we right what years. couple you a

other material moving really Florida it's and strong. generally, saw of demographic That we that a not down. slowed people There's of lot So to but a and are Texas lot changes markets.

that's And bit a away taken little the edge. so of

But of kind us normal normal takes a just where are, of which we of to undersupply seasonality back that, again, think homes. kind and we is

look multifamily, now good in Tailwinds at occupancy occupied that we're you season, to been going we and able forward. grow We've favor. get a going slow in a position. capture us If relative are demand our in to to we're know

I can more we're in have shape. get individual But it questions. We There's good some we're generally, you So in feel healthy if dynamics further like -- into shape. in markets.

Dallas Tanner

Dallas. this John, is And Yes.

to as of then think of Charles different loss sort which just -- other But we rate might to as denominator. better I also staying add have home this in mentioned aware that just don't home too. put longer, much us out anecdotal sort just We want to of that at also of XX% there. -- some way. seeing that a you're a of. I had little I So transaction a overall we kind making know we of With lease be And things new were peers' the bit information. And our growth, point, market, I some the that Charles' couple think books of people quite of construction even puts up a you're about business bit as a just much are of of in

thing of ticked in on customer stay. would average other is now is, add I over length X The denominator, years our that

to until ever kind optimization sort our always on that We will It maybe making of longer we feels business and like be longer thought is customer is of just stay from we transaction there's a get think share I from an renewal obviously teams availability. capturing to years of growth into out much think So going rate But our a ago. rate the the will company of, renewals portion we sure for started environment XX can. going we're where the business, I I cheaper what of than want much Charles as with that's historically to perspective we get home as as there. be, new and solve when bigger more lease

Operator

from Our next Fargo. Wells Jamie question comes Feldman from

James Feldman

dilution, the through for about just I little and coming then and year accretion, with of plans you're debt how your interest So your thinking we those? billion gears just think balance thinking due, the the just strategy. rest you $X.X year? about you the sheet And and as think Can higher of planning And of we on year, being just for about rates just are next into earnings you currently rate about potential the to longer? based should talk how swaps rest year shift for talk and a what look as just through wanted about next strategy the

Jonathan Olsen

the we I billion of and in It's of X-year question. call our debt about, rate loan XXXX-X of think, instruments. maturing component Yes. floating our Thanks of XXXX. last debt last Look, term talked X on $X.X That, securitization comprised have we about as $XXX IH is bank billion facility. the million remaining the for $X.X

We to business remaining despite X.X%, so. on So is the cash we right? cash XXXX not is do to to rate about compare have on August cash pay in securitization that swapped look to fact XXXX-X or a sitting balance balance we're are earning if on available unrestricted from sheet where sheet, to, our the Today, what X.XX%, either the the grow of deal, to that X.X%, pay rush off is on that we sitting cash the we're which debt around at that debt. to ample that swapped is a off sitting our bond that

our bank have partners. lender the facility, to respect with dialogue With begun we

comfortable the would is facility time remember, it's typically to last are here But obviously we also I capital. a do We that the comfortable to left. shown I We've we very that feel to something. I But the patient, posted ability keep think we with have very recast wait that have months. be ourselves bought till of And We'll to helpful. process sheet. aren't to minute plenty think coming important we on which that with We going to balance our over progresses. going you as access focus of the say feel

With November those that this out rate securitization. respect to swap there I that of pretty year. some swaps to point book, would expiring are the in XXXX-X correspond well floating

So if we probably that we rate floating anticipate debt. fixed sense potentially makes rate with assume anything aligns expiry debt other don't debt with that, the repayment, would than swap that and replace I that that

Operator

St. Haendel Our next question comes from

Juste from Mizuho Securities.

Haendel St. Juste

But what's one and governor different that the on to the to the the from from I I historically protect it's in Journal things earlier Wall legislative that legislative the have of Texas on state for calling sorry, of appreciate added and the -- in to Texas, large agenda some role families. comments Dallas, guess red more Republican Street in played. the article management is deep here. be a latest SFRs coming state So U.S. your housing third-party

So plans of are expecting to Texas. in you hearing revenue? Texas, based impact about still that which only to you're might curious on potentially your what I'm guys front and and it portfolio in your X% how your is potentially total add

Dallas Tanner

Haendel. Thanks,

and in country And since supply even issue what for affordability would in and the to been in generally a really the pretty to hearing hate context some Georgia markets. gets legislatures it's to pretty any on like Texas where things of on. a the and state are really ground want that the, North bit Carolina shelved terms we're don't had decade Texas Florida, and a country is year. in the We've feels are of And moderation. bit going on wins pendulum I everything part of that there's We've in seen last Look, nature. they in very about bills sort the it other the portion over local in housing crazy of. that our of and levels pro-housing that and and number have a I and tricky friendly focus call, swing over of the GFC, last that sort to little driven I at We're doesn't of the represent have social be comment a right, speculate full It little both over largely the California. Look, in of business. big last over. You're active state the is issues

of fall on XX-hour a I'm bait also context are matters And headlines all any political lot quickly. and can going issue. there's I on people and/or in not well to very an things become where get expert time. see we a versed where the in we news taken out that particular live click have one of cycle

focus subset about that, XX this SFR as million for creating nearly day. massive customer Jon the deep. execution, Scott be both Charles are And end and so shared bps at lifestyle our in consistent, and the housing provider we households that that is, of around a how things view represents of flexibility kind the deliveries, of of experience XX a of consumers and to the

the time, control way bps real that XX And is can in offers I things just so we behave, are which we the that business the that those only think, great in be and a flexibility service.

suggests conversations we're The our are article and of make way article as you one as and realize understood. continue types we come of out lot the lot solution sure the I think the by subset gaining the we thesis particular was that that this I build reads problem. housing solutions you that to And traction into actually that the a because facts of of different way, around into that isn't part local the disappointing. facts you think data, get to headline get and have levels state to many And start deeper, at this figure of need out the as in to a the out stuff you that

So of question we'll be the at Haendel, particular makes subset part given politician tell sense, can't is what any one many but thinking time. any you a of

Operator

Our comes America. next Josh from Bank Dennerlein from of question

Joshua Dennerlein

receiving Jon, what How management the elaborate just from the investment -- should could a maybe comment fees by And on on the we just that about offset investment spend set investment wanted entails? are follow you spend. on made being you think to contracts spend? up of that some duration investment you're

Jonathan Olsen

is need for the portfolios, sheet, to gate. this technology of in office as some outcome doing at make our to Look, obviously, these us. the optimizing the of with and about, same platform, field. the optimizing really business and heads is, the investments. as we we're to we're a better a out we don't talked respect balance better high-margin I think news going some towards sort I We attractive, coming years to need to as back going some business. be in to structure, iterating we anticipate operating we've this need perfect be heads spent we a just The our Yes. onboard good But add that third-party property management add

that costs new property across onetime some and will in incremental nature are of majority show upfront spread management of the in agreements. and up these expense these So

to be get terms perspective. And correlate of more and is come more big of an we that them efficient Some variable should that those manage. attractive think to as contribution online. I how margins the homes in of we our from picture, number But are more strongly earnings us this are able make we and going is a more business higher for to expectation really

Operator

Our next from Adam comes Stanley. question Kramer Morgan from

Adam Kramer

Can growth compared wanted One, stay months earlier, what provide way. know a doing it different walk growth to any ago? for given think, ask maybe on that you I think months, new I next a which you X let your specific expectations about I how again do to bit at you've compared numbers X asked us now had maybe renewal how few your time, XXXX point. the ago? visibility, for I months renewal renewals, was just months, and expectations last right to little expectations through, provided additional your on in just ask roughly for didn't me try you to X and

Jonathan Olsen

Yes. Thanks question. for the

obviously, revised I guidance. we not think, have

where the here be really will really we course closely the comfortable view continue feel the in Xs. of Xs, feel on for we of likely progress. we rate is, growth We the the would blend Look, with and saw expect how blended fact good shaped low feel quarter. good guidance the year. very that we're out we've very the high our expectations said sitting to aligning very, sort how first it's our about for about year results What We over we X, with May shake to

really that to earlier, May things sure way if the of change, any, Charles I them of there's think blend of X.X% line falling much, in alluded reflective the to. not that expected we I'm is So kind

Charles Young

Sorry, the clarify. April blend of X.X%, just to

Operator

question comes from Daniel Scotiabank. Tricarico next Our from

Daniel Tricarico

On if what rate break you X sup. spread pipeline traditional rates down channels? a the homebuilder Curious today quoted those in acquisitions are in MLS on the looks the from versus could X.X% the those cap quarter, like what percentage between and of the you cap

Scott Eisen

From right of still we're changed range homebuilder the And now in is in has this direct our and on of Scott these with market that say -- homebuilder majority cap We look, cost is partners. of a third-party we And we of we focus don't doing are little still, that we've of before, transactions. seeing most terms would Eisen. also efforts terms and question. focusing on the as more our in still dispositions, homebuilder of Great very rate. a I I think what around management business And so disposing on acquisition in terms yield would the MLS for we're yield. X-ish said what acquisitions on what the these our perspective, we're deals We're is in doing that growing now. right terms the Yes. cap said of targeting our it's our doing dispo purchasing. had with or materially think of as X% in and terms expectation I in anything in

Operator

Associates. Our from & next Zelman question comes Lederman from Jesse

Jesse Lederman

Nice job during quarter. the

market at with a to points pre-COVID. consistent you Can growth gives peak April new conference, maybe that recent exceed growth in it, basis your typical, renewal summer this and confidence rent You typical that rent rent move-in April trajectory, discuss new the from seeing growth accelerate you're summer to what noted you you how points move-in the will basis roughly XXX XXX acceleration? relates call to expect

Charles Young

throughout year. see in cohort, is lease can't year, overtake I've year. in the maybe summer July, that and as will the we kind whether the moderating don't new on Yes. accelerate, kind we lease acceleration little the And summer. We're into on you're I peak year summer, will somewhere side usually slightly demand. renewals I into June, said varies mentioned, of that a see the seeing Dallas this renewals, lease predict it the going lease the could that lower to new peak of I pushed typically typical that -- think to by steady new loss over we've but summer, see that stay renewals in

down. it bring might that So

how see it goes. we'll So

be I the up of That X.X% see kind accelerating and/or the started April for in occupancy, at growth we January and and to May, where see wanted we've we the determined. to summer, as typical a where about, year. we're out we'll and think for the seeing it us healthy the in be. We are of building talked as We're acceleration really right into start what lease we're works takes we new summer. now negative rent will from expected season said, that the

Operator

from Gorman comes from next Our question Michael BTIG.

Michael Gorman

And a any Apologies time about if about but you in know there X.X% left mid- the the that's implied? of any other that sup. anything if potentially execution would I levels guess to high on up talk just change you left back guidance mentioned allowed range is the the missed I bit the pricing? push there's for coverage could or terms then little -- insurance talking in maybe And spend renewal just unchanged this growth but of you that that insurance to there initial just I from the teens guidance

Jonathan Olsen

Yes.

with sort So came fact come of year. sort mitigants, and formed that with initial and trip our why really attractive great reasons has our Bermuda with that was that treaties would constructive coupled really of outcome the built-in higher. brokers the of to of early view to of cause nothing our the than business is insurance guidance We in risk risk number in an and insurance underwriters kind with you. reinsurance more We meet explain in reflected last there. were a question. pleased -- our help course London over There to left all working annual much the Thank

the a insurance us. is line small for think of at item the however, I relatively day, end

in it. a So there's ton not

the as on that quarters is largely in attributable property be were tax the going tax, to were that about, quarter expenses accrued obviously, What's under fact elevated impactful, year. as fact first to as is year-over-year talked last each of here first much the of were property X the we more in we sort they

numbers, see expected sort that was is to people into expense baked when and guidance. that growth be So also the of our

be market to is driven caused what our the it think I positive, renewal insurance so environment. of Specifically, by a lot

We're that coastal. benefit But there things about our also us. are some business nice not

home manage house-by-house per the the and operate. where have a We at reminder $X,XXX, of of the $X,XXX business. our than average, cost example, price asset the on probably to a I state And scale in it's think that's points of are insurance ability annually Florida, nice for less $X,XXX homeowner, basis. our a for On between we

to out, of no So benefits I of changes the answer to of to the testament anything round to think policy our really that nice we limits or nature. scale. And question, then or that's made a first last, it of sort part your just structure

Operator

Our next comes from question Jefferies. from Tsai Linda

Linda Yu Tsai

a If turn renewals forward, your how much OpEx? much reduces we quarter quantify bigger time? going are part how business does of less how And more expand do this each over margins your

Charles Young

closer over us how a it's really years Genuine people for healthy to and driven expansion. prepandemic, have is It's the answer balance that longer, I'll want But in X It if part anything of that with getting we talked track look position. a terms were the business also back and where we've we're healthy in really tailwinds But with out bottomed Care of back that having And of moving by margin year-over-year. our the turnover of during some renewals. down pandemic. on of high kind a kind we big years. just serve turnover and the X and we to really at Jon of a about but our you now, California of lot industry us, go stay the getting let resident

what occupancy. our shows up that's in And

and Dallas -- strong last our a reasons it's renewals. of and plus days occupancy operating And buy a strong part You at of is really turnover we've business leading for to low as really people be lower it's the we ever kind in keeps given, that big forward. to we few a going lifestyle, Dallas there, said, been low turnover it as from will nice said, low as been expect that It's strong and years. -- take the high. as part re-resident of [indiscernible] I home to see moving opportunity think out, that And yet

Operator

comes from Conor Deutsche Peaks from question Bank. next Our

Conor Peaks

get a think versus specifically the earlier economics little Invitation buyers. touched but this the the can yields selling I higher homebuilders maybe could you and on individual bit we homebuilder if around to why discuss

Dallas Tanner

add This And do. cover, anything I like is please Dallas. don't Scott, would you anything, if to

have growing recognizes last to mortgage of we've in to of I a number several think think One, can't come taking communities that schools, need started the that's a circle good following. that been be for-lease a been through has want customers for of years product. one the with qualify us great for step sort evident relationships lot over these and full I industry homebuilder but the a access come They thing they cetera. et back, as to

do I efficiency. in think our the can the with happy somewhere just cost. us easier inside building alleviate I but exterior We way middle. would also know they have side as natural think exactly Two, more their on business I we is help over believe, that we together the to elevations to view burden that of add, what reduced can market they're of same And us it's on a over to we fleet like there product we're different and and of scales the significant structure exists partners their and transactions much amounts over. where we end, I to multiple a get those at take and homes help a costs want

is future piece environment. But retail a kind can't portion them derisk speak their the view it of terrific of even and I thinking. higher homebuilders, help think a work they for business to I a second for rate business that we they've I The of and as think able been also through

able And to housing can a say last, facilitate some an have fee a capital the at business, the purely professional units. that certainty of natural X symmetry I regional maybe regional help also much then between versus ways operate simple of in wants think, we so in there multifamily costs that owner builders is the some for-lease we see lot smaller year the there like new actually, been just banks you can of and create And so, these derisk levels, or to over around I of or not think in help production operator where a some builder. the

So makes it there's -- sense. just

the business, business It's have massive they a that XX-hour you manufacturer category. pick and retail of like also is car at from portion successful lot to all in to the a car in and But and then outlined country. big where be sell U.S., the airports they different companies the system the Hertzes around their Progressives a rental that lease the any we

distance, business commercial over that our And think we plural it as a in and I a the I evolve say a are is with do to in and but homebuilders. that it's in try small way where do as sense, great part be can it in of no-brainer that that try should much very relationship can meaningful way time to a together. what partner do a we they we a such we way a

Scott Eisen

buying and only Eisen. add confidence create would a project Homes Scott take it's that builder, they The homes more project. portion of be Invitation when larger know thing I to that look, is, going Conor, gives other them a on to it is here a

partner, get market like from marketing add start think a things And us because and sales as on maybe a in only they they a a Also, deliveries, as XXX-home not lastly, they're the through the relative XX on a to their in be they remember, market when out work start go retail might homes I get to X when the we result, XXX-home builder, saving when normally we as would might us then and might they're those so and homes average between you I asked from community. about X terms a homes with costs they of but And X that having with only themselves. community pricing, market. month month deliveries selling actually --

in together, the supplement things what X retail customers. doing we're reason try they put and of the is selling all to what builders why frankly, do individual to accretive you these to it's So terms

Operator

from Buck James. from today Horne question last will Our Raymond come

Buck Horne

my negotiate hot I up trying just the market guess not that from want and because that to topic here on only is builders one with in mind bit on you're it's topic. really question to this obviously the a deals follow I little the

I of capital than X% those able And cost builders. chasing about everyone so there's kind saying of negotiate when a deals lot with else numbers talking is on still being But maybe Xs. what to numbers? guess those numbers you're yield sauce is secret have there what's of are secret I other so in or to the guess guys far the described achieving those a you kinds sauce

Dallas Tanner

I question. this I the you good Buck, maybe question before. It in up, appreciate And Really following very because centers around predictability. answer didn't well

our in operating predictability have We margins.

have We up showing in predictability closing. and

with and close a record with asked track in M&A have to great to. the really We ability market when the

inbound thing a think lot in an just doing attractive the investors we've immediate very see of which, doing they're for way, for and just thing couple operators Our of the transactions to margin we've marketplace. had pickup attractive would add in and of by the some are the I think things operating margins, in differently. looked by We at our for in an I interest a XPM, XPM partners quickly are

the tax sold decelerating all that's cost think and now a It's And way it's and occupied, growing build you our way revenue blue same approach do Buck, in as We're first mid-Xs nicely. getting with and very have so we for cost -- XPM. the the just that, of things, our as better sky the not XX we We're When couple relationships. And positioned business we've us, with like our we these goods a scale. next about approach these could develop going risk the to have we things done situation in anything and we're know, it homebuilder over business years, I that environment of you in homebuilding started in property opportunities to of view XX.X% for years. as as the think trust. industry. these in time a we're to lot has Like you same professionally access and

matter the work professional said we to we'll have and up show best the and want and those We equally that's do out because capital matter. we'll expectations the things each we that other most with of that there do

the have or capacity the kind are lend operators that's going to scale to that to as maybe to space specifically, or outperformance that other the this think ability itself don't look integrate I that, conditional question, and it. relative of in to scale you the close your to Buck, at seamlessly on

kudos, makes in bringing on doing your growth markets a back creating trying for next give the at That point, us developing are return sense team that decade is I for The industry and to is into yields, there for office, supply housing and field it going new Scott and out be what narrative about as Charles the it and So I total to Homes. of see the product new a these will Jon Invitation basis, and makes Buck, the our SFR product, in the the about be as be into several the and these marketplace. next new his shareholders. build all relationships profile years. going that sense It's bringing risk-adjusted to to

Operator

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

Dallas Tanner

for to you in Nareit Thank time seeing We your We your grateful for forward look at for call. everybody thank today. attending participation. our everyone We're June.

Operator

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

now You may disconnect.

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