Invitation Homes (INVH) 31 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Scott McLaughlin	executive
Dallas Tanner	executive
Charles Young	executive
Jonathan Olsen	executive
Michael Goldsmith	analyst
Steve Sakwa	analyst
Scott Eisen	executive
Eric Wolfe	analyst
James Feldman	analyst
Adam Kramer	analyst
Jesse Lederman	analyst
John Pawlowski	analyst
Joshua Dennerlein	analyst
Juan Sanabria	analyst
Haendel St. Juste	analyst
Brad Heffern	analyst
Austin Wurschmidt	analyst
Michael Gorman	analyst
Julien Blouin	analyst
Jason Sabshon	analyst

Call transcript

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Operator

Greetings, and welcome to the Invitation Homes Third 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

Good afternoon, 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;

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

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

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

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

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

Dallas Tanner

afternoon, good everyone. and Thanks, Scott,

thankful occupancy recent our continue provide the to of are trademark work associates the nearly done demonstrate Our staying residents, hard by with months our I'm an our outstanding our third control quarter residents maintain work the impacted hurricanes. particularly for average. high to on reflect care who XX us for genuine now have experience to teams and costs results to

business is dozen clear so, evident and home XXX,XXX what this There it clear a then a a started to strong million a when flexibility years with also comes desire choice or a to and not was When we now. by remains today, us need us lease ago Americans to This only that XX but choose us. who by choose to to the home. the households lease leasing for is

transparent proud being leasing of We providing service and committed premier is while highest any other the resident very home of best that the are most management experience single-family and a to provider. remaining company offering the overall

and home work our and our and and to home come go. to relationships Our the leasing rapid and has our a our still It car business third-party like now which Thanks bundled to I'm investments care-free home. we've homebuilder we with reached deepen goal technology, in expansion is easy, strategic how of a our the value-add This far as pleased expansion venture or external smart also we growth aim XX,XXX services grow make management, our includes teams, includes our into hard a convenient joint to as of together and over where continue homes. Internet. that running with leasing vacation initiatives

$XX convenient explore additional million value-add and to we of continue residents. on year achieve are target revenues offer our Our to for services desirable our this we amenities track over gross and ways in can

expense midpoint detail raise discuss updates will results. at contained reflect night's the our Jon expectations to favorable earnings for XXXX. penny our FFO that a our the Last with current and AFFO latest very moment. core share, in both year full per in Returning for along These release same-store

the some revised includes year. second growth of during half same-store our revenue the moderation in addition, guidance In

to a experienced a part As growth healthier following due years. the significant sustainable during we've cycle more we X pointed out return the rent past previously, to in is market this

our July and from Orlando we motivated primarily of pricing also in markets, including for Dallas. noted lease being and driven listings absorption as addition, call, a In by it's on few and BTR some Phoenix, our new supply Tampa, pressures,

With the nature peak drop-off as as next Based this, new began BTR deliveries with in that that XXXX, on starts behind supply deliveries next current already and on absorption that in believe period. focus will could through are a temporary us year. us fall in BTR team's to this help and expected work few we pressures the quarters it's much our large new over XX%

years, exciting next believe near-term It's remains for of been over of a of expects research strong renter thesis grow XX,XXX country the our by XXXX. supported also we've expansion ballpark new positioned Burns regard, population, notes to there that years for Burns average approximately next rent our will to old per XX that age our years. this which for of XX the which X million resident is business. demographics, for old. We from the day years that with X.X year growth. very over and the magnitude. homes beyond demand future is portfolio households since people right continue job remain to these believe growing long-term nearly strong through at renter be that John turning attractive growth. markets investment least people of XX by number our every uniquely Outside And remain noise, we benefit the in risk-adjusted returns XX the In years in seen of that long-term

all strong, intact as its future picture business our like and remaining been thank bullish in teams be our I'd prospects. hard their macro In to once of closing, again their to fundamentals that trust ahead in we've With we continue REIT as the the about lie as for and we continue us, that support. dedication their that sector. growth as remain among strongest the well investors achieving and remain and expect residential We our continued opportunities for for excited work, to solid

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

Charles Young

Dallas. you, Thank

As our recent busy residents early help we many worked associates, we you from The by tirelessly service damages to hurricanes. mostly network of fencing time a our to the storms. created and vendors been mentioned, far are both our Based for assessment, on related impacted engaged believe of experienced of it's requests, our have our our limited general work and orders maintenance roofs, and been so these across have majority internal actively markets. teams whom

the of the response and that we to have our I'm communities. assistance really proud their residents provided and

of the moments can these they benefits While leasing many us. also highlight some of with be challenging,

requests, app damage us into storm to our away maintenance mobile we attach log and pull even these so to of send allows Our residents driveway. pictures know right what we maintenance before the to expect

and effective that cutting tree team associates is our in service our network who Meanwhile, maintenance roofers, deliver debris unrivaled of haulers fast, live within and industry. the efficient large to dedicated us of and we allow and local crews the communities believe

us best residents residents also great In our addition, for satisfied as we believe attributes and business. longer. our us only our care not help These premier to turnover low quality but typically residents stay genuine keep the attract locations help outcomes leads and us

XX% turnover of As while approaching in earlier, for just the among is months. stay quarters the length Dallas was our now the best industry. same-store mentioned trailing X average XX

third growth is Renewal Against growth rent that renewal in solid leasing discuss more third that normal with was I'll now result X.X%, line quarter backdrop, our same-store results. rates. a quarter

rent lease to our was with growth together New X.X%, growth brought blended X.X%. renewals, which rent

a bad improvement X.X% Third XX in XX% as the quarter healthy year-over-year, a basis same-store by other core year-over-year third averaged a same grew monthly rent, increase the year point X.X% result. driven in a quarter, the X.X% debt prior revenues primarily increase in Occupancy during average income. nearly and

controllable quarter. core driven a during by fixed expenses increased the great X.X% controlling expenses. and in expense third a Meanwhile, growth associates moderation Same-store year-over-year, only in our decrease did X.X% of our costs job X.X% in

increase together, NOI. of this a year-over-year in resulted same-store Taken X.X% in

Looking to in results. leasing our same-store October with September line was ahead Average results. XX.X%, now occupancy preliminary

October growth results point, rents few X.X%, while our renewal October pressures these Dallas' coming some is new X.X%. blended that To earlier in rent markets. X.X%, at and growth reflect absorption In experiencing supply a rent preliminary of we're in lease continued contracted achieving of addition,

when encouraged such in through we Vegas we've supply as We're Las last and seen As before by worked some pricing, new also signs into preliminary reminder, a influences it. market year, November. it heading

end acceleration X% include While of our absorption. approach as rent optimistic remain with X/X solid nearly early, we of well as our in the of these year. still the renewal improved north it's growth already completed We as book

third-party as support To wrap enabling of thank our homebuilder to year. have once acquisitions we know associates, dynamic the our it's is serving management for and in job up, year we ensuring safe who our our great residents, homes. to through I'd and and for for team I in again the like and a goals sound another growth place been rapid work focus remainder the push their in towards right everyone the one a

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

Jonathan Olsen

revised our wrap update and year third balance through and then markets Today, full an capital I'll quarter on walk investment-grade guidance. results several discuss Charles. our recent Thanks, sheet, financial of our up activities with

X.Xx, balance net slightly cash debt unsecured, liquidity to on of than over had revolving our better our X/X of Over to billion third targeted and sheet. a unrestricted was was $X trailing capacity facility. XX-month At of with combination X.Xx undrawn credit start available end our Xx. we our of quarter, the I'll EBITDA total in through range adjusted debt our the and

anticipated XXXX. have for until month's payoff final next debt of we'll securitization, XXXX reaching Following maturity our no

our several metrics or our These debt improve quality strength wholly XX% quarter achievements owned were rate the addition, unencumbered our balance come total In strong of to of was rate end. and and of quarter as that XX% of investment-grade fixed over alongside homes third sheet. fixed swapped

I'll call of these. X out

upgraded credit Ratings issue-level BBB+ and First, from outlook. our stable Fitch with to issuer flat a BBB ratings

$X.X replaced a credit reaching billion Second, senior of both billion credit bank a new of credit billion line revolving September a facility term billion consisting unsecured facility, our in maturity we loan and $X.XX $X.XX final $X.X with XXXX.

credit for new about points. the improved facility basis funds by of cost XX Our

treasury Third, of points maturity of debt February XX-year window extending about in ladder. September, to secondary over further in existing attractive issue basis better our we These basis implied. $XXX senior priced trading million took early advantage our a XXXX, points or than at X/X% XXX bonds X due the of bonds notes an what spread in X

the our towards $X.X we of amended and through And third swap new of extend than trades and average. on swaps old to quarter, in strike our a end higher of of approximately mid-XXXX, new rate hedges our effectively become X.XX% billion the average strike fourth, interest rate swap X number rate our average swaps book book. existing off weighted expect weighted X.XX% swap current interest mid-XXXX to the of at swaps rate After basis roll the only active, we into stabilize entered points

You X specific can and find swap on Form our detail of XX-Q. timing in rates Note effective more

Next, primarily to for I'll by accrual our driven and net Core for third X.X% year-over-year FFO results AFFO as the FTC results exclude settlement, cover respectively. and consistent same-store storms, casualty third the relating third quarter incremental share higher were NOI our increased estimated quarter share, to and These X.X% per $X.XX historical our the per approach. losses as quarter. with $X.XX from financial and well

$X.XX XXXX year-over-year full by FFO per to X.X% for growth guidance. and earnings per we of share, the core implies X% and I'll At core of midpoints, revised and respectively. AFFO $X.XX raised night, our share, midpoints the now year FFO and our $X.XX per AFFO guidance guidance our share both review ranges respectively. Last

X.X% narrowed same-store we've midpoint. the our at rate our growth guidance NOI NOI same-store addition, and In growth maintained

same-store the more year, As due revenue this our which date account primarily significantly from our to Florida information property expectations growth tax we've we've of for expense. expense we've also discussed, expectations received revised improved for together Georgia, half to and second favorable in over and half for growth. moderate same-store of

we for property have to revised of As our guidance growth X% year year-over-year. a X.X% tax full result,

to we've are achievements want near a discipline we every I year, know made As months. of These great of associates, in front. we'll our we hard I'm focused thankful and work the and agile end we have this I to of the the remainder XX as to we for said, the the the acknowledge remain first progress what testament and we've year, accomplished. the deliver confidence and That on approach need

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

Operator

UBS. Instructions] Our Goldsmith comes first line from of [Operator question the Michael with

Michael Goldsmith

pre-COVID new housing historical renewal The of I good lease norms. of demand, spreads and below the in sequential was environment high you occupancy the and but both decline fell alternative third cost in the quarter line have given you here suspect through approximately that with Difficulty [ break the norms, and markets kind out also build facing bit are ] the not? talk you are would what how more pricing of in power. performing can pressure Can spreads Technical and a on spreads those just

Charles Young

Charles. is This

us broke we're got on absorption what up compete in I it Dallas Vegas, before. on through and in this is handful of this price. seen we kind seeing a the We Tampa, dealt lease worked think pressure in You remarks, over little the Phoenix, about with of new talked markets few a That it 'XX gist slower but a happening really highlighted quarters. we've Orlando, Look, markets, you're like as bit, in making which and is I opening asking. in supply specifically our we some side, of

markets, of end kind that, Normal you get surprises of them are no there as acting the expecting are as than outside QX. But expected. of into the those rest we real are seasonality And other -- of there.

Overall, the good those book, that the about low. in of rest is remains we're news turnover for the markets talking

where look at stand, on across historically If turnover. we're we you low just

at rate. So really a we're renewing high

renewal we generally renewal XX% question, your on healthy. rate where to levels, is expect seasonal Our is book super an

take the markets absorb So work down But a bit little expected overall, what supply. we early that more through to these couple from absorb remains maybe it to seeing going quarters. have here. now. And work these where take But just healthy is to a few strong. through quickly The bit to right shape, overall in will a -- need figured see year. we little temporary a pretty markets of is kind that of demand about that little are book slower are the we we in a going we we're normally, that We're expect to occupancy we

Operator

Sakwa Our next Evercore with from question comes ISI. the of line Steve

Steve Sakwa

the capital deployment opportunities how cost didn't know Maybe Scott figure from better I'm about if you're landscape to so out just if seeing with capital the to on Great. I rates But curious and on difficult. development homes how can know around thinking the purchases builders. trying about of yield a and yield exact you're new buy the just talk maybe front. bounced is expectations today builders? quite changing I maybe have bit is

Scott Eisen

what in all, Thanks. pleased here, I'm for backlog, community. multiple we Steve. question, Great with the terms over the that very X we're with pleased the little made Listen, team our we're flow third with in seeing builder the year the of of quarter, that terms my first a building of did into relationships role look, diversifying deal very builder from And has our and progress I'm builders.

with deployment a what about a of XXX homes we you about third As seeing around of terms and closed in here briefly, risen announced mortgage almost at saw a we X We a XX-year in rates still forward and total X,XXX up Year-to-date, million for there was are with the closed cap. down brief builder million. Obviously, we've for in X% dip pipeline here. terms in then period of quarter, $XXX them the where dialogue cap. but homes transactions $XXX it's obviously, our dropped again around

with we're stuff stuff in them, months but been X say X terms I'd in X, very that's XX delivered days, of out. not a discussions strategic it's dialogue our to having dialogue, But about that's

very given terms of to to going it's dialogue what seeing. be whether sort of any that material I too soon we're I And in X. in pleased happy change tell with think the But we're market and again, in And we're happening with think still in we're we're a what to seeing. of around there's I think trying and homebuilding and sort target industry. the what's

Operator

Eric Wolfe Next question Citi. comes from the of line with

Eric Wolfe

You that mentioned of will residential the confident top you're the growth at that space forward. generate end going the business

share be next we where should think think -- just on was else to lease of you maybe anything just next potential? in or year hoping at to thoughts earn-in, year-end is your year's in loss about with you I mind, growth that could terms So any for going

Jonathan Olsen

Thanks, Eric.

about we hold on next we'll until days. in talking think I about reconvene year off XX

your point think in at later we can the that. position potentially kind where about a leave to But bit in X%. little more now, jump off. for of loss I about that's a we'll We'll earn-in, think around a I to it's be think year when talk as relevant lease it I

Operator

line the with Feldman comes question from Jamie Wells Fargo. Next of

James Feldman

as of pipeline some Great. I look builders tend same Tampa, onetime of Those different you to at the the bigger any growing, the most the giving is here also think normal? more portfolio growing to guess Orlando and most in where are markets, to diversifying itself development and kind in market on and if you're rightsize strategically, well. active just markets? things the I be Or where with the thinking more this AMH. mean, do you concessions get just will are be your thoughts seem back and just more nature

Dallas Tanner

point, sometimes It's along ebb right? whereas think sales. in normalized in Dallas. a is how We've been different of the flow, overbuild little way some maybe I or you business both It's now a an are as opportunity sort This question. and the dozen construction that to watched the pockets to market there's certainly interesting, situation a of dependent, softness years. your And of see, point, your great we've cycles this almost

the last we both resale resale took of that we advantage obviously, a site the couple we've business, aspect are You Scott the with of private and in formation of times and public extremely years, a with also earlier. homebuilders. a from number see it of and in I doing on can the early are scattered full the in we market the obviously that seasons happy now community product mean pivoted market. new but noted both also

to more little got there from there's probably upstream of sort to new But more time perspective. in generating room long go a is better demographic the inherent risk. view, a from terms on perspective, think based you've a We bit a over supply and both returns, maybe time, taking on of reality this

new be there'll cools And homebuilder right, and that more seeing the would level-headed little some conversations help a opportunities. so because how generally but in expect plenty created there's horizon, demand And today, either more, to we're around support on you're the be of equal. this of exposure. taking just really market could we bit there'll if we supply a rationally be that numbers about renter also markets want we have are Not all over long where diligent

but little margin maybe We have markets property in growth, high a that can bit and they're are or markets we few tax on weigh expense markets maybe side, very growth more have high the then where NOI less a nature. growth things

And think a or how started approach talk where of so years. next to think that bit markets a little little we about we enter go markets about the soup all about that some X we as I may Nashville to can think bit the these of get exposure balancing new may not and X we will and into more we

Scott Eisen

is the this acquisitions Carolinas the Tampa and of And add quarter. is what I in you backlog. here, terms for we our for in had saw Denver, overweighting that some Obviously, would Scott,

markets. builders with We the in IH our in dialogue are of about growth doing active all

are underwriting Nashville, evaluating we're builders these in and Vegas, dialogue with active the where Phoenix, so markets And opportunities. Denver, and

homes homebuilders or it's terms for in quarter. So XXX we we closing had our focus we communities some want were aperture was at quarter, where to volume look either we just the they X or and where of partially bought either that in lens our markets for the were opportunities. quarter, the included the When in investments, fully leased that not developers were for the from actually acquisition our

what to out as and go other to So markets we're well. see looking excited there, we're we

Operator

the from comes with question Kramer Stanley. Next of line Adam Morgan

Adam Kramer

well, lot maybe is you more if And of markets? quantify supply impact the of could one build likely your I to the new maybe in supply rent, narrative market. was is this I as on a of kind think new that say the of periphery wondering of

versus infill this little you your at a is could you quantify would much would you be maybe risk bit new this to think just which rent, that how would homebuilder more your think little insulated more affecting a homes, would your from supply. partnership bit be If build home

supply Just quantify would the the helpful. in really impact new performance kind of to see difference of this be

Dallas Tanner

question. SFR this top add at market, different at, anything. great he to like Adam, But by it's if the example, XX here top look there let if and little information anecdotal, a wants I'll you I we in say, the think and up bit because operators Charles jump And the lot out just track publicly. it's of for space,

at listings of somewhere and indicative things the year That's sort we're the the beginning versus Orlando. at up of seeing where You look in XX% between it XX% maybe being of spring. in aggregate Phoenix, was early Tampa, or

to of peak example, they were XXX started to Phoenix, these on for month-over-month basis. of QX, end a but BTR like they new Some XXX deliveries the like at getting markets

of that is we come quarters work the Now few a sort XX% and I deliveries the a this mentioned itself piece takes to down year. of on, expectation, bullish opening of we by is number lot tracked is and we're economists BTR next through, of that by remarks our think those to XX% in pretty that a think it this about

occupants our side, the new the little renewal new business. on impact for on fighting are we while or see So of we no lease side

and normal Going rates X past peaks at the XX%, at off we ago. years we the of of we've XX%. at historic is renewed what sort do QX come QX and pre-pandemic, to XX% X would back All that as QX quarters, pretty

that lease And has We've by where you're great. in seeing Midwest, So the spots feels business the the some XX% renewal in on flip new way, growth and seen getting new in that never we're before. side, lease Chicago. dislocation. XX%

X there or where of last of been of building sort that's to lend to some country the near-term in years, I in parts going the rate hasn't And X in there's X itself the think help. So areas where these those much investment development next couple we with deal or markets deliveries and we'll on, and quarters. years Nothing those really of X ago, the been that starting are over a coming can't of handle. lot just

Operator

from & Lederman question of with the comes line Zelman Associates. Jesse next Our

Jesse Lederman

lowered revenue well. last quarter You growth guidance as

So your can quarter talk during fourth that your or you the about were incrementally ago? for what embedded happened for months outlook outlook the X not quarter within

Jonathan Olsen

Yes, Jesse, were, it's exceeded think were We coming of of we your Thanks were So June, Jon. the right? X for I year. question. let's that look XXXX bullish. NAREIT lofty off back we very first very, at where the first week expectations months our for fell

you see to of on started Towards the we in handful a going call, June, acknowledge by we that the to of our of time it weren't July trajectory. thought the end emerge markets, same some prudent and was softness to continue

degree of in of the together, of the to emerging into to some just you the I here time visibility our going the picture basis what's ground and got our pressures we compete coupled be July is need which a just call. we supply more to I and absorption price, more fulsome of that with the only it of was and happening a markets of all at on the reflective and subsequent revision put better exactly think think of rate sort to to slower able on that, were

Operator

with is Pawlowski John Next Green question Street. from

John Pawlowski

and up you on of expected. said Charles the I renewal theme. great as to Dallas, book the the conversation throughout want just looks follow

lower You your now built renewal did than rates accelerate is growth expect to some rate renewal apartments. growth and

and as so struggling that? more confused to renewals the the price broad-based portfolio. on me of expand Clearly, think just more and than pockets And be others tenants Because in it tone are I you I'm sensitivity market the are the and with seems right great there's certain now. and that existing expected. Can on

Charles Young

expect flat been through the we increasing from summer -- question. as to to ask. think acceleration from of working accelerate early kind I over now since we're November. been Look, And but our the nice in renewal August, there. to But book, Yes. too our we September we it's we've statements, that the we I earlier It's signaled as Thanks for December, October. call continue will from mentioned seeing it were

when there's to these will So we at look exactly some it's seeing, hard predict as be things our acceleration But that hit. we're book, there.

September, we're point, and at in coming And here nicely. bottom kind of October, accelerating so off a this

what of back also renewing -- like this, you're try we're also a balance trying in And market get high at to the top just kind want of On said, the a Dallas of you close and to you revenue, level. optimized as to we're door.

we so And think that this. about all as do we

so feel overall. renewals we are in good where we And about

Operator

question Josh Next of comes from with of line Bank the Dennerlein America.

Joshua Dennerlein

I like heard, X% Xs like it on you that renewals, normal I ask seems wide? to how looks what and did like Sorry like on but that, [ periods, October. that does you that guess prior all guys? negotiation harp you think say with that Or I the with ] XQ just call, were for for on like out compare is going

Charles Young

thoughts. couple A of

were talked reality I to and Phoenix, is few much over turning make these absorption this, and we is Orlando, seeing as they we in markets early noise into markets. about wanted talked we think sure Tampa, supply we the Dallas, our when those that too teams about, weren't

compete adjust So we price. had on them and

softness can where continue bit at look build going and absorbing seasonality end as of the our we're And and we've now typical to of we're about, and that's some of working back as that in the kind where of a go into we were more seeing you that. November, here we hold those than summer, October through the to talked numbers, book we're going to confidence all well if the they that softness. some And markets and back. we're seeing optimistic We're kind the were saw coming

quarter-to-quarter, we've those said, at a to to there'll over be adjustment, going gone time. higher capture but month-to-month, So we're little start as and bit of I out rates,

Operator

Markets. from BMO comes with question Sanabria Juan Capital Next

Juan Sanabria

strategy. Just picked on your question

whether -- changing, part those seems part longer exposure we causes costs general and we weighting why or guys in holding be markets? But business of if to a It then hurricanes like in today. of Florida. just not. those just curious You is of out? significant seem term, should life could comfortable you're doing that climate be business have And or debate normalizing the the to cost doing on Obviously,

Dallas Tanner

for XX Dallas. at Florida at ways sort of address the little bit sort I'll the overall. doing are with things we're first to look we're book. Florida's always so years, And of constantly is last specifically, of as you we're growth we've to because a course so of shape Ordinary on bullish Juan, would flood the really, that more asset profile management clearly, sort with careful of expect, that part. the book weighting over and looked help plains out us

in terms We growth. right, appreciation. total the of think about way obviously And revenue need some want asset return, good we we obviously,

few We homes prospects We have sold this and Florida. really aside more, year around sold probably the the hundred a There's I story in think like in of Florida. Tampa -- that's and we sold Florida, we Orlando. where particularly hurricanes in seasons growth times South Central

of lot on formation, the some on sort facts long markets. time. into of ground, a businesses, with long a there's to that A you information. We net lot those the interesting multicultural net fun reasons in and household migration things really seeing think we're for of see be of those migration,

Scott Eisen

X back as in the Dallas over years years, clear, be so, last over X I you X,XXX homes we And to portfolio. the we almost sold just said, when the last Florida. think to, or continue then look And

focused the is. So on kind portfolio we very and that manage to continue actively asset what of we're proportionality

Jonathan Olsen

I the of it's Florida. and To in question, part have that just your the point -- would we a Southeastern Jon. portfolio large U.S. last out Juan, Yes.

will storms be So continue have been part a of and to life.

when proven we season also really where has had But about we we've the think We've material impact. it's of when as stand course that to a years things. that, storm without think be many to a but activate XXXX remember important I One, any our history, few we to playbook like years have over hurricane ready had well-established and needed. if active, more

also point that out well we're would I insured.

neither operating about very we that. property our not renewal the a loss is we think like point the history, portfolio course And benefits program coastal, as of entire markets that risk favorable can Our it's to have managing history over we waterfront. in our

out underwriting asset just us to book the approach of basis outsized the contribute the approach sort to rest manage house-by-house might in on of minimize would Lastly, our point that lets our a of risk I properties number and portfolio. us relative that otherwise the that management allows

that of periodically. are be flood examples So maps redrawn would

an and area, a in team so Street candidate. redrawn, for maps now Main well is, if basis disposition then sets previously hazard flood XXX special off And becomes and asset that and the management immediate wasn't it that flag an are mapped a on Scott's

underwriting of to and homes, When at the we're time. year when construction, at we we building look look through maps, compare changes we codes went that flood the substantial over

said, things that, the we such risk, in do with opportunity these work consultants as manage return markets, which still think risk-adjusted feel that can compelling. is the Dallas our portfolio about and all shape are the very with, those we total So we good insurance to

Operator

line St. comes question the from next Haendel of Our

Mizuho. with Juste

Haendel St. Juste

a had other on question income, pretty I quarter. this light

tough something what growth And I that Is that digits quarters. annualized in think maybe impact going the was? versus think prior in up think quarter, we then item then on comps, tell forward. basis third-party X% that what you color some there. me should an line double the on about can And the else, a management maybe was I

Jonathan Olsen

I your part of the Thanks, second Haendel. Can you apologize. repeat question?

Haendel St. Juste

was on third-party the Second part income. management

So just curious.

Jonathan Olsen

Yes.

of think various ventures. third $XX quarter, respect I million and management from joint the the with fee total to the So income balance was was third-party in of that million about related fee to $XX of -- income,

going million or I maybe decent number income other sort We'll quarterly dispositions aren't run updated streams to forward. pretty is the think that, rate that extent a $XX fee growth either moment. that of changes activated with you at that the keep or

took though upside place things. the in of as the scheme big America third deal through probably to grand a feels that quarter. the it But bit there's midway little particularly not upward of because

that $XX makes number million run a amount sense. think So decent rate I of

of that the With bit book, as income going and services. have to to see remember bundled sort growth some other taken through we little lines to our you has media, with of pretty of strong that's flow as respect income, particularly respect that areas those a other a well. occupancy to continue Internet dip, in to

the that, is of light say quarter. the would I unexpected So in that not totality of

Operator

line Heffern from comes Brad question Markets. next of the Our with RBC Capital

Brad Heffern

On of actually the insurance $XX is just the for. number. paying give million how on like insurance costs, a or can you give damage large storm is figure policy exposure some plus seems on additional color much the how working

got figure to it how out trying So there.

Jonathan Olsen

own quantum, good homes. of windstorms question. about we talking I Yes, markets we're affected it's the lot named that I where in X think a mean terms a of

I to sort observation I upfront. think that's want make So we of that sure establish the first

program have windstorm works, to per windstorm, have continuous of million when insurance a the coverage million every we means of begins. $XXX for terms up which how that from $XXX occurrence period the for for we limit name XX-hour windstorm, named In the name

way, than -- another windstorms each apart, that $XXX XX a So of limit. have there struck those storm more if hours put named million were occurrences multiple named would

things respect bit location. little varies like like it to a With by deductibles

Texas in value. our of is deductible So X% insured total and Florida,

that making and just had on value we $XXX,XXX was numbers be for here up the $XXX,XXX home would insured total if a land purposes, deductible X% then illustrative the $XXX,XXX. of value, on So

that and other be deductible to look X% Florida, When Georgia of markets goes So markets from that $XX,XXX would a Texas down like that outside X%. you for or home. at deductible

Operator

KeyBanc with Wurschmidt Austin from Capital Markets. question Next

Austin Wurschmidt

trending occur any in demand conversion and traffic has just rates whether with either of seasonality web you where sooner? And year-over-year prospects those you that And person in is months? of kind guys marry Can or recent also kind then tracked? just saw characterize on on how basis a

Charles Young

healthy. us absorb Yes. that. having have just Where compete be that's hear is to do And we to you today price why to that on to sit quite going we're confidence able some

kind of you website look to QX it's quarter-over-quarter, traffic QX, up. our If at

year, year-over-year. so down at slightly seen point, any we've you last that were humming still of prior kind period. COVID to back in Going as But historically, good as

really healthy self-show in there. showings to Our convert from a being driving able then and of are to terms

the some markets, running work of supply to that we strong into about. we'll year, occupancy So next here. just markets But at where a from in to back to and healthy seeing mid-XX for Again, a build year talked through health. try time shape we're across demand go here in at the really handful be of this generally, seems continue there's the we're real to

there's the know products. kind long-term the dislocation have of ultimately, homes we're And markets. know that because a for between that there of that in amount out demand we we are the right And we our that and

So good and we're we're going seeing through demand, chopping to keep it.

Operator

BTIG. Gorman with Michael from question Next

Michael Gorman

income as was or kind into the of the income accrued for We a in had XXXX? some forward other mean also saw property fee margins. we and of obviously expansion related going income significant that's discussed question on about pre-COVID I expansion is provisions I'm wondering, think that just to of a And quarter, earlier, growth to there the settlement window. same FTC the pretty here, or any NOI whether other levels from here return as margins you substantial a as headwind over with from potential head that in we growth kind

Jonathan Olsen

off the that the any training believe more Thanks we Jon. our specifically. with have the just income and to run settlement on question. FTC for do the ongoing business reporting I'll The we settlement do line that stipulations impact going have and can It's other not making clear of like. by to the really way agreement start is or

much so rental growth think clearly, much there what at a than I crystal don't stronger running bit versus rate been be related to a pre-COVID read-through clear, of just margin Possibly. lot A in be the is think, Will number reversion? saw expansion that a mean things. of And there's of period, the pre-COVID I regard. we to we've One, higher occupancy,

think better to the do much gotten much remember it's of years, those over important and I we more that what course we've But at efficient.

resident to think the experience improve. I continues

public for certainly to think relative I to to going are is company multifamily early and product certainly were. this what continue I think relative a years to turnover type as low, be

seeing to sit. the years. we're our subdued really that optimistic also obviously moderation to finally with margins cautiously we benefit So that have property going to going forward. a more increase is that, of And note good are we That's expense. feel I the NOI real we about where over rate extent to some would respect that tax coming

Operator

with Blouin Sachs. from question Julien Next Goldman

Julien Blouin

that Do the couple renewals I high-supply difference maybe just continue quarters? historical. focus wider renewal these and can of in the to guess, go continue you to of realized as How between the markets that sort I wanted back ask to next you for expect on absorption? sort questions. like sort sounds of of is of long than it some

Charles Young

we confusing and Yes. we we're Look, the we providing were COVID, -- specific in kind found signaling be going and out it during the of can changes of kind renewal of ask. this, based where on kind

important kind And forward. focus of so think most actual we going in what's on results is I

that ask home, market, in as is we've situation. market and August, And all of It's it per dynamics been a the and really said, the vary more more. per is to it based post what going to dynamic spread on I asking is be going

focusing the as trying on on isn't So to results. zero that spread as in kind in of just healthy

north we're we're -- is further into our or seeing of good is going November that in acceleration to with look And X%, what close from which we're XX% early October which early, today we're of is December, and book we're acceleration. the to bag, seeing in

compete in being where created are the where markets is we're want We really matters where that our want out. on in be that's stay positive. to There's People This going the terms we're and to So this believe where demand believe price. to jobs these having demographics month-to-month in seeing. to all again, and all markets ultimately. term. these we results long vary like We it's even are what is go homes. of we But we in And in markets. where the

as So stands year into we're XXXX. and where book happy the this we with go finish

Operator

line the of Rahmani question Next with comes from Jade KBW.

Jason Sabshon

move the in new you're XX-year is and This whether Jade. and the has the curious narrowed impact? any what hear I'd of be bid-ask month on kind past Jason on Sabshon has seeing for spread cap had about to acquisitions rates

Scott Eisen

of seeing, on question. kind think channels down great a into I look, of look of at when Yes, talked I break kind it various right? It's And It's we we've we're prior here, Scott. what of and rate. those terms the again, sort the we're we're cap seeing transactions X% deals seeing forward in still and our in around builders on purchases. call a And in the backlog

cap stabilized We've is I'm communities what definitely today communities for the seeing it, are to the forward plus market fully have stabilized purchase you with where less some it seen on that associated little of in like out a or stabilized risk range, there's take leasing. some some, community risk come these execution and to fully to in feels call opposed a leased in a X.X% as minus. market obviously, the And

look of of at, seen activity And kind then on rates hard we really it's other an are ] market terms have markets, as today. far we to the the cap various meaningful MLS in But any seeing market what in where we're so haven't opinion as those today. really kind [ channels that's of the

Operator

John Next with Pawlowski question Green Street. from

John Pawlowski

the is of we expect quarters? your the of what's source should funds One coming the for given use capital in #X today, where or in cost John, Dallas

Dallas Tanner

think think jump add of it's anything. in, would capital feel bond has mean and of a did I That's cost a coupon I some I activity to us where I for then Jon, was you John, great doing. we always saw that X.XX% total free me ]. the capital pretty [ significant markets of balanced approach say, month, a to been that Jon Let deal and well-priced last cost like is. capital

and recycle, forces Scott significant to dispositions we're lastly, that and operating. amount in JV interest And third-party in some things come markets would to of expand we're our that the using. to and profile capital, and have say a combine and JVs We're our continue wanting about, also look in I we of the talked

number do a things. I of can think we

of credit talked plenty this done access and the team. with as earlier, earlier work facility capital, have Markets the that all did We year having credit Jon work to he Capital about the

issue And that in a free event flow the comes or ability could to we that could that company. have cash the the things make of We decent into not see amount have sense. we

in continue growth. to to All being equal, lean things we're going on

in to ancillary lean which and that lean will as profiles with eliminating around the the then think I external retention. programming the the over enhancing processes business in revenue experience the resident well of centered additional to create free is cash continue here create find organic and our for on to ways growth continue drag goal we're accretive in distance, to some doing and the for company customer flow are time around

of think I kind an team X the on excellent And is fronts. those job doing

come capital times from. up the we the take against opportunities, to those at if as to So right just some we'll we'd have decision where to want cost of make

Jonathan Olsen

position. a John, Yes, sitting it's bond only recent cash Jon. obviously, The sizable thing deal, would we that are with fairly is, the I on add to

million that applied a I past, in think about as the of be paying likely about November. $XXX off on times securitization the XXXX-X our in cash to balance few to we've is sheet talked

the the opportunity thoughtful But attractive beyond when the opportunities opportunity, is presents set want be what and to itself at move is think we really want about And given it appears an on and looks funding of in way based and we that, any we do be opportunity when try to sort what we to move, quickly. time. needs point funding to like

there identified that one if what nilly going out respect have -- capital the opportunistic of proceeds. we don't is willy of and is I go to offering. one markets we're things mean capital being I raise good we But that's to particularly use just at clearly, the an think are with of the not

Operator

question our of And Wells line Fargo. from the comes Feldman last Jamie with

James Feldman

Great.

is election week X than the less away. So

be could now? be hear state might Just spending spending? curious do in What differently? time you you races impact outcomes, places federal in on is based key at desirability or thoughts you to not January, that you'll level. now really the on How the or that state come certain doing different level more be there And the your guess in your to in certain Are level. you're I your the either think think differently

Dallas Tanner

everyone means federal that of to at And that day. Jamie, what figure the sitting is is around all level. the think I fun the trying question out

you You hyper issues at said the time. nailed the what state it ones the we're on is that with all there which end, are focused really

in our some actively don't that Those anything California us on making dramatic on them center and are Yes, the sure rent that. now of look, concern. there like ballot processes that are we've control in in participating that things our clearly have states other right the right front radar. for been causes too real Most of things advocate we around

the most politics noise talk time the state think lot come I the at local from there, to of around level. and is we the level, the a Most we The federal while spend the municipalities. about that of at risk seems this. reality is of federal

between Scott hyper-focused say would I would really private the deliveries capital got being been good dialogue there's balance And supply. obviously X,XXX We're sheet are built product. industry create leaning had our more homes new I talked continually now. with around just about XXX in at somewhere to we opportunities right on. quarter. an to We've create that between and like some the both in add the induce that parties and that's we federal X,XXX level the creating area that

and constantly it's invest as portfolio of only growth it's our finding and our recycling in these into part ways in story think to and communities. bringing new We future and not our company important, a but product markets meaningfully

There's NIM] I states some to need We in of access are pressures. it of get have demand quickly. of [ to outside fairly more absorbed these stuff manage. will going units This local even think to supply communities plenty is that the the thing piece of and near-term supply.

answer So mine, have they more after as a and your guess will the as election. is good interesting

Operator

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

Dallas Tanner

next for look you. you their to this everyone grateful the NAREIT to meetings to of on who want continue forward thank many all month. We're I the Invitation support. call of and seeing shareholders Thank at later for today Homes, our support we

Operator

gentlemen, today's this concludes conference and Ladies call.

disconnect. now may You

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