Invitation Homes (INVH) 27 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Scott McLaughlin	executive
Dallas Tanner	executive
Charles Young	executive
Jonathan Olsen	executive
Eric Wolfe	analyst
Michael Goldsmith	analyst
Daniel Tricarico	analyst
Scott Eisen	executive
James Feldman	analyst
Austin Wurschmidt	analyst
Haendel St. Juste	analyst
Richard Hightower	analyst
Derrick Metzler	analyst
Jesse Lederman	analyst
John Pawlowski	analyst
Juan Sanabria	analyst
Julien Blouin	analyst
Linda Yu Tsai	analyst
Jason Sabshon	analyst

Call transcript

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Operator

Welcome to the Invitation Homes Fourth 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

Greetings and welcome. Eisen, Invitation President Dallas John 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 covering remarks, with analysts. conduct question-and-answer a Following session prepared our we'll

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

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

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

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

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

Dallas Tanner

report that XXXX. results delivered everyone, morning, financial you Homes us today. thank Invitation and Good to strong pleased for out operational quarter I'm another close to and of joining

I loyalty our of share the platform, share solid teams to year core results our X.X% growth extend FFO of AFFO continued our thanks growth demonstrated for dedicated full and Our my and per residents. including of X.X%. across per execution

we're long On proud Invitation for continue Homes our the choose term. that the residents to point, latter

quarter, fourth of length months. the XX was average stay approximately During

time. our same-store of this industry X.X% the value XX% growth for in also year-over-year. renewal the that testament in achieved rental delivered over maintain the demand of relationships some proposition with a underscores offer Genuine the high-quality the homes we're platform with residents trademark of areas our also Care. and continued We believe and to We to our country a fastest-growing strong rate and It's rate our with desirable on renewals neighborhoods able of located our

XXXX, we During performance. the and of XX,XXX JV seeking We and last service over to manager emerged third-party X.Xx grew our as count home for choice homes. professional managed more premium than year by partners

future. to We expect to the to in business this continue grow have opportunities

into wholly from time, portfolio, further innovative our At helping through investments. our partnerships, into part homes capital the same XXXX. built older newly recycling growth-enhancing families owned This optimized during X,XXX over possible individuals builder and welcome we assets newly was us constructed in

broad-spectrum than the of completed doing our with we approach purchases. ago, homebuilder Rather, to launched the X,XXX remains years considers beyond stabilized on-balance-sheet broaden more acquisition meantime, either traditional partners have model. this the continued In so, of start robust homebuilder moved our under unique build-to-rent from we partnerships to development X and pipeline we've by development the partnerships or view at our our the homes year. refine builder home Since nearly everything, communities. early-stage In of binary

our profile traditional box. and become and structures by strengthen the evolved of SFR thinking we're new to further has continuing growth opportunities sophisticated, evaluate market the As approach to has outside more our

new footprint allow by growth expand our evaluating our density us Combined, markets and existing initiatives growth scale our our strategic profiles. and attractive with markets core enhance within potentially to

as In can for portfolio, execute that returned last we we and and margin As we across see NOI on over expansion. overall setting the same-store we've and support our improved XX% management learned, improvement and scale efficiency our believe OpEx regard, density margin year, entire further objectives. CapEx stage better growth continue the to

moderating Last new Turning to conditions. current among summer, in the the out call to first our market home were that some deliveries of impact we markets. now were having

incentives demographics. impact and the this tariffs improvement. higher are of are for taking the our to to At inventory including for see seeing for early supply rates for and year on ahead, that and time, work market. the mortgage the regard approach and initial tailwinds Nevertheless, signs the business throughout we XXXX remaining prolonged same supported of we vigilant some by chance the buyer potential We the the a our clarity with through better may as with and we new builder-spec have effect continue expectations believe the measured remains year,

there who As among age lease millennials those, XX choose nearly With lease those according residents. of the compelling their of $X,XXX million in years Burns our research. cost leasing convenience It a value single-family John resident home. owning And households leasing and average a young single-family X to in who the single-family with primary reminder, month old, average X appreciate home. are flexibility a home this who and to nearly many of American desire includes XX markets leasing our a also of than the includes families cheaper a

excellence, our opportunities approach while stakeholders ahead, our service well remain believe positioned disciplined to dedicated our to and to to to With superior a residents. ability strategic our external capital teams, high-quality look operational we mission are on provide homes growth we capitalize create confident As we maintaining in we value delivering while allocation. to our and approach for on

you. over Charles, to

Charles Young

Thank wildfires Angeles. Dallas. team's to to proud you, begin recent Los by our highlighting I'm outstanding response in the

very Our demonstrating only scattered which part the X local built-in caring lost was thanks in of our and of risk a that We to residents. best homes portfolio to for mitigant. extraordinary dedication our showcased fires, the nature provides Invitation Homes, the team

tirelessly and worked during victory who L.A.-based ensuring time. deepest was this I team safe. and important challenging all to remain more gratitude of all my residents the And responders extend Yet our associates those our first

operating quarter of X.X% NOI in growth performance focus strong result expenses, results. a year-over-year. our Moving continued core operational to I'm was and on to growth demonstrating of This revenue by same-store core now efficiency. X.X% with driven happy report fourth on reduction X.X%

full year to NOI X.X% latest rate on expense Notably, the XXXX, core expense of tax and of brought of year-over-year growth X and of was welcome expectations years of For our delivered operating property X.X% normal growth core line X.X%. our growth following X.X% larger growth revenue return growth based with in increases. more a a we

differentiated our within to underscore resident-focused residential REIT we sector believe results helps the our Overall, approach our that performance provide.

a rent growth above of XX.X%, During XXXX, annual of year length average stay same-store XX% XX approximately full that blended X.X%. and turnover just months, of of average included occupancy

leasing our to now Turning performance.

X.X% For quarter, blended based X.X% new rent achieved year-over-year the and we growth. lease on a growth rate fourth same-store X.X% growth rate a renewal negative of

earlier, leasing off a Dallas improvement season. leasing in our same-store and mentioned we've As recently healthy kicked into spring as we seen moved more XXXX

of growth the year, would and blended date, remained climbed we past time has rent occupancy growth average for mid-Xs couple and this expect XX% rose growth lease new reaccelerated here results, of while strong to positive has As January and preliminary rate including to was months. rent to X.X%. lease the February in February, in renewal Quarter

to average same-store like moderating share will more and or of of details I'd leasing in summer to the somewhat our before accelerate lease will discuss months levels. for towards continue around few through our renewals moment, May occupancy a the color Jon rent months anticipate year as new and we some in more XXXX midpoint, rate year. expectations the prepandemic with with to improving last of normal XX.X% occupancy average growth While finalizing full we enter April our a mid-Xs expect growth the you return again guidance Overall, the blended year. the effectively at same-store our We

Executive Field Head recent Operations. customer unmatched for and in Many seasoned take you as of after on I'd leader of care, XXXX, his to like congratulate Tim have to a I operations Homes promotion investor to Operating was Lobner Invitation Officer. most with know efficiency. close, recently is talent met serving it shortly at Vice Tim and and moment a management Before Chief joined Tim he conferences founded President

providing Tim's next leadership the with outstanding and Tim every ahead service associates we're This our team, is cost entire success in appreciation field in I'll for year our our the day. our focus growth. expect. plans more great residents my promotion allowing strategic your disciplined the me who best remain as remain management to for exceptional week, with on the Following of leasing and for the goals. in focused to bringing fundamental for execution, our Together Thank President, to excited COO you even achievement role that on truly

more Jon turn that, discuss to to it I'll our detail. With financial results in over

Jonathan Olsen

our second, financial third, update X guidance of following Charles. year Thanks, our our an and full cover assumptions. the introduction quarter Today, balance results; on sheet liquidity; topics: I'll and XXXX and and the XXXX first, fourth

At liquidity sheet undrawn had year-end we I'll the a $X.X unrestricted nearly revolver start balance with XXXX, balance our robust on position capacity. comprised and billion, cash of of sheet.

our ratio debt X.X to just range X.Xx, below Our targeted year-end net adjusted to of EBITDA Xx. was

substantial our several total our debt unencumbered, debt optimizing of rate XX% Today, is in homes over XX% Over wholly nearly is and the are swapped-to-fixed fixed or last made owned years, progress rate. over structure. of of we've our total debt unsecured, our either XX%

website. to to to the book regarding is our Relations which addition our pleased new our also enhanced note swap I'm a of transparency posted section Investor through supplemental,

for Schedule the around rates year-end our at rate strike fixed of through provides book swaps detail the of with average years. as vast our believe weighted attractive Xd active swap us new majority several well our XXXX, as future, as Our locked We along well swaps with forward-starting our for next swaps debt positions floating in foreseeable the rates.

$XXX at controls. Total results to translated costs in per core fourth up growth FFO share quarter our lower our were team's million, our the per fourth X.X% slightly This property into revenues $XXX strong operating quarter million with cost share grew up I'll AFFO X.X%. and fourth year-over-year Next, year-over-year to cover in quarter, a X.X% and results. testament

we FFO delivered the per share X.X% X.X% growth AFFO per core and For year full growth share. XXXX,

core XXXX. per X%. and same-store to full $X.XX of a Looking growth ranges ahead now range $X.XX to X% our guidance with share, between in We've a range to $X.XX per $X.XX NOI in of introduced and FFO AFFO year share

midpoint. XXXX guidance night's through also million The available the from bridge $XXX $XXX in Our are FFO wholly XXXX acquisitions in funded anticipates XXXX core complete guidance of last the to at our at guidance details million release. our of midpoint midpoint and primarily dispositions owned

in a sheet, a strategic focused a and vision In summary, financial on XXXX entered metrics with position compelling very growth. operating clear we healthy strong balance

delivering and compelling capital to providing allocation. position approach value Our base More our to largely strong Care with pursue ever, to our provide Genuine growth our residents focused flexibility opportunities and tremendous disciplined than maintaining superior on asset unencumbered us liquidity we're for shareholders. while

Operator, line we're now the questions. to for open ready

Operator

[Operator with Eric first question from Instructions] The comes Wolfe Citibank.

Eric Wolfe

I think were blended in your the you already said in spreads that mid-Xs February.

curious just sort of the cautious to your expecting similar based think think was mentioned further to why you're level bit I And I that taking a accelerate since on So you're that also throughout guidance guidance. Dallas a not is a approach year.

I sort by you know else. what to referring of So something if or meant don't that's that was

Jonathan Olsen

Yes. Thanks, Eric.

anticipating mid-Xs. are growth rent We blended for in the XXXX

the acceleration feel the I some good take summer bit to then very see curve, in do a of lease months, picks recall, typical the overall, and growth the to just back month sort back since little XXXX. each the moderation, part year, acceleration part of December. in seen you rate as So And first a the we're new see as think here We trying a we as turnover year, approach step of some measured we potentially in of seasonal that up we've in reacceleration.

impact are supply supply We There to that a is The flow-through out absorbed. have anticipate there that absorption occupancy. reality supply will of some some be there the is pressures. needs that on

the of midpoint XXXX, we comes higher, go that on as best for XX.X%. our is days and but impact to assumes occupancy slightly growth try we generally That saw is from a XXXX you maybe rate to that similar range as biggest out achieve market can. longer skosh on So turnover the

Operator

Michael UBS. with Your the comes next line of Goldsmith question from

Michael Goldsmith

opening of impacting about year, last talked but your in early deliveries Dallas, signs remarks, how new you're you starting home to improvement. were some see

deliveries walk new from can you're through right So expecting home now us XXXX? also you're then seeing what you the what through and

Dallas Tanner

market. supply seen we're Great Yes. said, reacceleration [ spring John as started to the we certainly into of moderate, that peaks the something We've Double we as into to last we season. real some seeing coming question. summer called off sort some these head ], pressures out start see gone when of leasing supplies coming

'XX variability those some development of and in terms that is amongst had still entry there pressures with pay easier lot of the system. better barrier this of starts some for Florida in and sort in markets. starts attention markets number We'd of get optimistic into that Now 'XX us. likely Phoenix both to sort expect the there's that some most a to of probably We're and feeding and deliveries continues new as we to

sent even that homebuilders as and their bit as the public of spec of we with counterparts our more we've calls mortgage with regionals rates would expect of But well be just that may there elevated. a stay some our inventory as discussion some

is this but lease, all slight headwinds our business. new it's Now for renewals for terrific

aggressive be new close on market more the lease XX% continue has than side, guys we'll of leasing we a last little for can But house, clear year, us. the as on volume say, giving and the have which been of of what anchor sort they to our to side So to renewal as the now summer. is take bit the rate are were, on last

Operator

question next from of Daniel Scotiabank. with the Your Tricarico comes line

Daniel Tricarico

or Scott, to wanted Dallas bits. West your either Coast ask I about For

increase seen any that there the SoCal activity fires impact incremental from And any since First, that in earlier in in is guidance quantify? have in the your year? can you you

with seeing the be seems an there potentially you're backdrop, as West second, stronger business too. today, the being better growth to increasing -- in demand there confidence out recovery well, And Coast

reevaluated seller? So being net you have a

Charles Young

take So this it. is I'll Charles.

material initial impact. for really question In guidance terms SoCal, the your no on impact of around

NorCal But at you unfortunate. markets, were our X and had lost. If fire we homes high The is for occupancy. us, SoCal run we very only really look that

fires where You our the from got is book located. to little remember, away a were further

at the were that we running homes time, market were in at the on And the available SoCal, time. only high-XX occupancy XX were when there

high really it generally rate a impact and there's supply new runs yes, a didn't we're both in doing demand, lack side. of And little so we're on on really there occupancy well a was have at And how while, renewal bit huge on more the a book the That running. market. that lease because also there

been it's So solid. really

if know to into Dallas, the going dispositions. want don't you discuss, I

Dallas Tanner

And really of certainly balance selling we've in recycling a $XXX sheet successful sort roughly, and company. nice a lot question Look, call at to great today's accretively X a X. spent cap million. done job of for how to a and it, homes the it, highest it's best are Scott for proceeds on capital a use And call around about to on 'XX capital. time of X,XXX Scott's looking typically of I year cost market. capital closer those around of ways then a think priced in And create, that had

as But Southern And your we higher there California, portfolio. really it's to always model based us so on that as our opportunities talked of expectations a think automatic weighing and return a where new just a question, our think and about the to in pretty expected will on at renewals I specifically of you out in at look likely sort to appetite total see terms refine be discretion lease basis. for continue about risk-adjusted and rents business that's around we Charles that that

accretively yield or both value, for either binary we look on investor. things It's total so bubble as distance. remember, over of to don't time at on return a kind us, looking And but important we're and time we're grab a just to total

Operator

from Galan Your Bank next America. with question of line comes the of Jana

Unknown Analyst

allocation portfolios of kind of one-off seeing market, or now. bit little BTR a on that, you're what Is there Dallas, sales? -- I it the we in kind a could Or the was opportunity little more MLS about following talk primarily bit is an capital communities? the hoping more transaction right and of if up like

Dallas Tanner

-- take I'll this is Dallas.

seeing lock better portfolio some to capital product first but basis the to Scott level, evolve absolutely part get the more less on color. over me partnerships a and us for bringing and into out and early ourselves and to into take this create From new that candidly good high provide more on opportunities the ask a really builder even and Let we're structures have time. of door these focused we're risk-adjusted ways through some

see that felt this a off opportunities we You'll backed we're we it, company. shifting. untrended towards, in the quarter, little in of fixes. was love model We call few driving at even no that And but asset-light to some kind dynamics fourth because the of market that basically the to risk fact

right of bulk in one-off sort I'll is acquisitions. to market what really terms more on ask ground Scott transactions, on what seeing provide nothing stabilized color he's between and now of the

Scott Eisen

Yes. And evaluating as deal of very flow we're bulk said, terms we absolutely are portfolios. are We the sourcing on much single-asset right seeing where market. Dallas really in MLS obviously, now, not

have we whom seen seeing we've small some we've Obviously, flow institutional to there. We see absolutely but are of in with obviously market, where deal pieces opportunities we bulk sellers scale engaged. portfolios, small terms buy on of that

We've end-of-month nice of actually from very of kind tapes seen the a terms of in opportunities. builders end-of-quarter flow deal or

see selective I there we yield communities, obviously basis. albeit some and think we've seen that very a selective percentage opportunity. the we on rate low like, hit in areas But win is

targeting. in terms get time locations XXXX in We're sponsors absolutely definitely and communities. being to selective But to and of we're sellers stabilized seeing flow deal the that very product terms liquidity. that institutional We're BTR seeing frame in build financial of we're want yields

strategic dialogue build projects. and in our then with builder national forward-purchase partners we And engage targeting to executing continue in of terms

got a and in to about we'd like pipeline basis, forward more. As on we've said, the Dallas add X,XXX

right traded channels, us there's these return and the we're for risk-adjusted a where of to publicly company. So look pick all trying the think best as we we continue channels at to

Operator

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

James Feldman

the for talked outset, possibly at and Dallas, about structures for innovative growth, markets. entering you So new new looking

to You the added guys C-suite. Tim

think on growth, obviously, also, be us exactly better focused roles too. on on Charles he's I Scott, Can changes growth; do the of everyone to then ahead understand commented the to going that just the team? the And management help more for you now? different focused team you expect see changes,

Dallas Tanner

questions. yes, asking. Oh, for those answer to Thanks happy

product we to going more a doing of is our Scott call up pipelines Charles Charles centers few number and and to a around get of how that the company we're see to job of riches for in luxury time. all, time our Charles and efficient SFR more the are of already building it, sort both opportunity of that to the everything traditional for going it's around, make really of freed a growth. First out ones nice on have have opportunities, that our I a together. including XPM eye to to grow on business doing like over I and work areas platform work things strategies the me sort over strategic on will continue in to be new

on sort field. combination went sweet bit in a property so for and our maintenance rehab high-touch through that management with been would house, being Tim to the side the much in for house. on it the turn transition just business more time rest organization weeds management of get most that a seamless, and leasing is involved say, little the the really has basically side to last more ground the the long of me the part business Charles concert year. decision because of made on and the the of Tim in cost makes our flexibility of our give between really Last of of a I and Secondly, more sense a boots And in year, decade. is And the centralized

some year what how business and think new I the XX,XXX-plus around excited for we'd do extra a to business. the having AI own our we that focus. better you what We're about is the but We're is, of and efficiencies Charles profile did like with XPM our it in to partners, the business. of units creates We enhancing widen that implement looking breadth last scale lends at and opportunities only see for wheel. organization little saw to things for reinvent more there. adding And without goal technology because some our margin bit not I, to we it pace itself and

on that and us these no go I some as have having things of will And working lend strategic things does Charles. of anywhere of more we're think allow with on. partner candidly, Charles innovation quicker, going a plans around me thinking create to senior to another work nor set I the

heads and keep goal so residents. just keep better our our find opportunities And and for alpha ways to is trying our create to down for the both to shareholders

Operator

Wurschmidt Our next line the with Markets. Austin from of question Capital comes KeyBanc

Austin Wurschmidt

I new outside some SFR bit and how mean, expanding, you little I you're last for the these that some box? kind think hit I guess, I you growth-enhancing think Just about guess, the a projects of the on first meaningful of remarks, do question. prepared evaluating adding pursuing separately, markets. on, time and in your then And

so about do share And gain ability saw additional you to new to if in if year. you we curious immediate what were detail any a Nashville similar to you enter just market, last scale your can

Jonathan Olsen

these for just, us. how I'll substantial opportunities some by been up This Jon. think, framing of is already Yes. start have I off

share. XXXX, to we for in that, anticipate AFFO. third-party FFO about between JVs our third-party contribute that core So an per incremental share and management and $X.XX And businesses our business, a management $X.XX our will XXXX, contributed

that of see scale, think a capital-light continue to our management clearly in I which better book. very So third-party business earnings efficiencies, terms contributor enhanced the related think has I been solid to the costs to managing really growth, you'll

mover, try and will opportunities find new eager the move to that continue needle So to needle. absolutely we has we're think that been that, a to

Dallas Tanner

markets, work new think is want expand about markets. And a part question. hot Scott on seat in to don't your on Dallas. to I definitely the how I'll doing jump on we're put current of on quarterly our call, how the This to second but

in latter aren't about love today in past we've talked us City. we We that the the past. X. a markets Nashville scale, the heard Lake more done bit like about San in getting little Salt that is You've we Antonio and talk

think say, then like we're there's that market both a generally, all ways to our of in extend advantage I almost we currently would I probably in, X over if the strategic year next X making it offer want a to because that could services. we into investment. ourselves don't we or see scale a and the we the of And markets we go lightly find same take widen market And to to them. would

to And talked of our leasing that AI, the I second seen ago, already leverage can that today, business some our we some think in us our over an to some different think be things in we've of is in grow able we automation, allowing business. Charles ways renewals about some example, about leadership around company new team, things implementing a start that that of our We're to time. to

to our those Invitation able So the and point, Jon's being of automation, over to create are run technology to efficient digital allow infrastructure partners. the benefits the capital the rate on and flex returns of and extend Homes own going to to long move our all of more platform a

Operator

question next of St. Your Haendel the from comes line

Juste with Mizuho.

Haendel St. Juste

abating. point sustainable nearing could It me if I'm especially pricing thinking seems you're could business. how about be be this new revenue that low long-term a I rate for same-store lease supply we run year, is -- curious Dallas, the this for pressures guess to

you're of a in I'd revenue pricing same-store this the So revenue potentially this for thinking here, year can the portfolio. in sticky blend? your trough year, about stay longer-term around love X% to context growth outlook could same-store year core for renewal opportunity if hear So be how

Dallas Tanner

your approach which supply around the earlier good we're ago. unrealistic to And forever. probably flagged occupancy velocity. we is the I we go said also stay rate in know But some seeing knowing headwinds to X XX%-plus months are some And of kind I'll say, it's we just that something Jon run sort point, a supply, year, Haendel. measured we're question, that there of Great into emphasize on, taking soft that would as

that And have we that moderates So of you as bit. expectations comes in in guide rational sort see and well. our a

back, XXXX, X% lot think X%, of sticky the at curve. is blend. unbelievable lease on to since rate renewals as in country, I be future We've have different around think know. you about optimize been, how had an things, this go are business lease in And by to of terms a think run generally went COVID pretty year, and around in deliveries new and as you you outside always and expiration as the public around of Haendel, about a is you which it driven going you supply expectations story we your

year We've done months feel some the time. We going the like curve. position our this really a great defendable work expiration on lease into over last in X we're pretty

be into full environment, the to in delivery And the low relatively earlier, come And made point more all down to that cost as follow and, get starts. that suggests give. deliveries. operating It's down it do to capital that some was and and particularly different to is developers the market, market in some are is data are we so to see a harder we'd the And we predictable got environment XX% than think we It expect that can create I that the lean somewhere last, year of environments, between that Belt a little willing still bringing fighting a now. consideration right was that tougher Scott a of Sun take product there to but deliveries say, there's on versus and this rate, do doesn't lot operators, prepandemic. But terms XX% certainly the hopefully. what in while the are going

know we're going beliefs people as see in right now, of Southeast. back, We a demand. demographic But tenure step to on very just XX,XXX to Belt our that the as there's something much prolonged growth we're I turning suggests the like XX,XXX around Sun would XX. All that Midwest we're information day in rate fundamental of a age take still our the long impressed with

has customer old. around of customer today pretty XX years right average Our X the been last All to X is that the resilient over years. profile

there's course, invest country, that the suggests nothing rethink opposite. today in to need our fact, change we maybe of parts in or a that So the strategy different business in

little pricing be While through these the bit some a lead capture markets soft, and we really may as a bull side actually things run extend in we and in a position softens sort that to are can look of scale works density to our itself. supply while so of

Operator

Your Barclays. Rich from with Hightower next question comes

Richard Hightower

in the on of a maybe Obviously but multifamily covered ground maybe point a today, between core just contrast pick up to that single-family. renter and a demographic made, terms drawing lot just Dallas, and of you

there's thesis multifamily emerging just core is of reasons. cohort kind think expanding sorts economic of for all to I the this

And that one, that do it's -- appreciated? think had makes kind proposition earlier it agree think the and of you zero-sum everybody between And single you in to we with second, it several you of maybe next a than pie a thesis? multi is it little so enough sense? big years for more enjoy Or do the for that do

Charles Young

understanding $X,XXX have is serving the Thanks -- we're rent than to opportunity. Charles. buy It's that part we unique a affordable a of home this a for market we're more question. today's in If is the look, market. question, This we I'm to Yes. think the it

families. are have The and kids, build-to-rent around X, it's is portfolio, we're our districts. scattered school families, have portfolio And or neighborhoods our serving X whether X, bedrooms, good of so safe We majority our XX% pets.

The to and serve continue are demand that People months XX rising to We're good that quarter. group, seeing demand is healthy. opportunity there. an have we for staying demographic. so really And each

we absorption, low, And have We our high. that's that's a markets but part through an built and And in think working good that down think February, but are, QX. it like that And relative serving business. about in we And multifamily. renewal the book, differentiation we of back demand. and occupancy the good we where seeing product are looking is comes some we is where we're little to I January, absorption our really turnover we're talked I ecosystem bit our of the are at to in

space, and in, more offering, that that job around it's that are rates, square right when manage working really with to you given the you little that a bigger the value in slower it and about bit renewals the lease given it school really seeing on Yes, really in we're our getting and goes to and we're And to and per think we're showing in demographics at in. how even is occupancy. a good houses, when up but QX, compare now, a look multifamily family foot, through typically there growth we period renewing new go price yard you're and on is districts

like our we stand term So through working where and it, product to multi. long we're we relative and

Operator

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

Derrick Metzler

assumptions XQ. This blended for I expectations little is looks bad if in your don't and has just Derrick like Metzler X% trending I on the rate mid-X% that And in Adam. could if bit. the we new gave XQ debt growth same-store then renewal lease a revenue range. double-click on wonder and you it around in know been

to improvement the the about XX XX, confidence in basis 'XX? points curious in just So

Jonathan Olsen

the question. for Thanks John. It's

I debt. with think start bad -- I'll

Our rate expectation the cautiousness range a continue. debt see we'll that of reflects will in degree at expense, bad debt about continue bad but which that our improvement improvement to

real a improvement second noted, correctly saw We XXXX halves. a of you half. in X of a year material tale half of first last little then bit As in backup a the was sort the of

down half shrink. in a of markets number where court the first time improvement was the think to lines to started system I

time like And these get the County, lines of specifically remain takes is then some Atlanta, I we of while quite Carolinas, a have what elongated, X through Mecklenburg the to a system. today worked still think still where It markets situations we're couple seeing markets Chicago. the

to cautious. just we so be want And

We're believe We're what we really as we'll efficient improvement. that focused last continue year. as see kind focused was on being we really on to collections. to but of experience be do half be, of mindful second So can want

bit guide Dallas I pattern terms rate, X% around going and in comfortable incorporates sticky We did it of looks a do for high did that mid-X blended rate of our versus new that little But very growth about, XXXX. in not sort But of curve range think same. not typical feel expectation X% remain the that to for to talked the trends remains the give seasonality then renewal prepandemic. renewal different that maybe than quarterly continues rate renewal a sort really growth that a to guide We're the that.

you appropriately the But our given the NOI that also that the XXXX shake feel We expect the will core so happen, want the sort can of very about be half would guidance that But of seeing the part our and the look year mindful think good out. of lot how just early we a growth due we're would I to said quarterly early comps ground measured trends in year. at be we growth that the than is really XXXX. here outlook year things note that. -- as in as I at XXXX, higher outset, in this revenue our A of the bit on first backdrop. of of little supply second we on it's primarily the and to half

Operator

from Your Associates. Lederman Jesse comes & Zelman next with question

Jesse Lederman

It a to sounds like management 'XX. nice expecting you're from third-party pretty contribution

Looking quarter, hood XPM lower revenue increased fourth and the expenses in the and it inched under actually management units sequentially. like looks for under sequentially

'XX, So can $X.XX the expanding you talk pieces mostly within there? incremental come margin? or units you that moving the do to for And expect embedded from about

Jonathan Olsen

them them allow to customers prune of be own and a is to perspective, I'll Jesse, little Yes, looking to going assets part of the sense say as sort a we'll their manager add. sort improve But from new growth profile and to overall just accounts make this: which assets. I with I our portfolio which it's of perspective ebb our periodically think their do Hopefully, risk-adjusted That's role bit. managed is sharing mean, an Jon. by on own to third-party the of assets book total important portfolio. our flow want margin find return would asset those shedding

so $X.XX year will about time. as earnings outset, JV over be as the to I XXXX of we business. a our fee in we this structures year full The terms of and management sort reflects well That noted as business earn-in very various the receive how And at good. income look, contribution, feel incremental from third-party our

I it's a think great business. I as look, said, But

PME you scale expense We as that suggested, have absorb we've implicitly business. new of think have to higher -- of line had sort and to I we seen

as you than think extract our quarter probably and a as will at efficiencies. lower here the G&A we be of it to look I XXXX, was run rate terms in fourth continue in skosh PME

we business of efficiently line introduced we need scale were to noted and our would make new we people the that business. was with this in kind appropriate understand what business, up, make, make some going some structure to of in owned When manage first over the together to wholly that that in we investments platform investments distance, time

have I we greater what looks into now. much think insight that like

be manage so on focused of whatever really be. we manage as the we case efficient how terms own said, Dallas of we're them we getting whether may totality the And as as can properties, in the or them,

Operator

Green Street. comes Your the line next from John with Pawlowski question of

John Pawlowski

One, new your SFR, comments international X-part mind question considering on goes traditional you I expansion exploring into external when markets? of growth. we're around are my to property I a sectors. hear, two, outside have avenues Dallas, And actively

the more would So around nontraditional growth of avenues be appreciated. detail

Dallas Tanner

John. Thanks, right. All

I our margin now. say right in cards better way but at here question, prepared first to But offering or mentioned our could U.S. the to we ways the earlier. as get to never, that. -- for NOI -- not we to anything enhance currently no, services aside, mentioned not Both in our an add look All scale. Rio see you I that's a de continue Janeiro and we're over we meaningfully jokes like On scale, in office in we a more never continues guess remarks, as cost-effective in contemplating the great opportunity

we builders think outside think of their of or One to opportunity cost of lend end that. traditional, ways to that number delivery of of sort or about way a and where to as looking that's is opportunities to far, on strength I sort can capital Scott about there's in are so stuff Secondly, create a X the for cycle. at we help operators close us maybe meaningful at might those regional a assets construction lower of

So those that are at. things we're looking

the to across infill, much economic candidly, where, compress on of looked costs Typically, rental maybe characteristics that's higher product, so opportunities business. sort in scale. the common We've economic our we're the they higher aspects have pricing, townhome looking more a gross done all single-family more ability more units, But stuff and but wall. last they that of share and year, townhome gross projects, at at candidly, rents

in something in open look we're currently about. markets, thinking keeping Is eyes parts We some for lastly, companies that to point before. and/or we're pay we're opportunities in more of convergence think But are attention. I we at certainly And new see you mentioned today. that structures? I SFR a to as already our smaller where add markets it's going with not scale see to meaningful and operating But there multifamily maybe

Operator

next from with Juan Your Markets. BMO question comes Capital Sanabria

Juan Sanabria

about bit could you a kind modeling talk be G&A 'XX. for little hoping Was and we of what should

And by tariffs for may how or XPM been pretty some may business. give be us expectations venture step-ups homes to around not with impacted and there. just on in flat it's that You the also some joint regards CapEx out noted are color the that as

Jonathan Olsen

Juan. It's Sure. Jon. Thanks,

think in the million, rate questions going to and with to efficiency and quarter, of so is the maximize we how $XX-ish $XX think G&A rationalized figured PME operate million lower, out kind have business. I think. fourth that million, be of And costs on I of a some million, skosh which we $XX of basis we couple that sort noted I a our the ago, combined quarterly $XX as as our on was around run a

continue is I'm question? me into you remind the hope efficiency can gains over sorry. our guide. but time, your Juan, baked we'll Our of is part additional that extract to that second not

Juan Sanabria

home? per Spending

Jonathan Olsen

product. Look, the of a is we our opportunities Thanks. honestly, external the I seen flattening Yes. have been there, part into majority think investing of growth you've new that reason

unit-by-unit Additionally, the as unique in landscape real we about manage we've talked in to have past, basis. ability estate on a the a

locations reinvestment to capital about maintain. have sort are that of start and newer feel patterns a homes extent can need, of that those the recycle higher and to we dispose materially exhibit assets capital go we good So within into the long-term to that the of and homes going cost to lower ahead portfolio certain

Operator

of question Blouin comes from Your the Julien next line Sachs. Goldman with

Julien Blouin

And Dallas, the could dynamics. And bit you of maybe be? supply builders. quality, that on sense comments compares how to the features on help portfolio? based Can your frame of regional maybe spec locations mentioned and large expect also, spec impact more what's those of inventory, supply helpful you the own that that you gave in you how some and your the homes spec color inventory, publics really a sort from

Dallas Tanner

quality add do private seeing earlier. that getting Great on bit every I color opportunities what both said question. some business -- here and month, of top place. profile and a spec of with of lot every a candidly, Scott that quarter, of love people to traditional we sort of our the have the mean see I'll generally the of of love little we fit sort the product with, We that products. on our are in we builders public partners

scale terms both pipeline a that scale, in big maybe product are so that fearful. much out of putting builders, We're regional a at it that or alarms anything seeing be the not us causes in us to

rates where a is coming fact market I think between there deliveries and now where spread we're are are bit in. the that just right recognizing mortgage in of the maybe

team scattered would also And development. do will that that, buying and around so those I be when aggressive Scott expect strategic thinking the our more and both bit in with little in a opportunities in we a

We're agnostic. and development large fine our master looks density. also feels pretty business. within community of sections We're of plans. like and current bets scale a we're XX,XXX Remember, taking over home sprinkling It on fine

little deal the it flow. on And a a the right want tilt see access this don't that a as now, would product. are It's to elevated. major more a you So guys is good-quality mortgage on that problem, market. be based $X,XXX cheaper horizon month us to just such home that People similar than that lease a to dynamics. we're there's it's that still those tends seeing bit rates suggests to anything market in home quarter-to-quarter I dynamics, stuff change that from And about know, recognizing buy

taking dislocation. advantage we're of that So

Operator

comes with next Jefferies. from Linda Your Tsai question

Linda Yu Tsai

year you to You most bigger XX% to slower Which XX.X%. were shift blend last for guiding are rate? are expecting over and markets in of the occupancy a from

Charles Young

that year, well Yes. But and This we're to board. question. as we've the ourselves Look, spring Good set starting kind this is Charles. we leasing last up see some being just or supply we're that challenges in season year, have markets thoughtful are not may in mentioned as Phoenix. on capitalize across high time to occupancy of Central of about building we Texas, Carolinas. California or build Those Florida, maybe back the the Seattle occupancy as

want much in bit just rate occupancy. So and impact compete those number as over, we be possible as we look to may of as price that of And to capture having when at on have turn to understand an it we're homes they our thoughtful markets. ability more on that those to try a lease to a

really is I think other the low. remaining is about thing turnover think to

staying turnover really is where great. healthy. overall, So we're I healthy that's on think renewal it's the really seeing And we numbers. And side, think

Across really coming markets we're it's market. we'll numbers that that's in in how about the not board, on based I So off supply coming markets of that we're on less we're normal markets. in an think others. most material of bit occupancy. a the about uptick on certain supply, than is And see little long which COVID, little stay have having more a to seeing talking the It's but

Operator

with comes Jade next Rahmani KBW. from question Your

Jason Sabshon

Are guys parties for in in increased interest This portfolio? Sabshon seeing institutional Is high interest or sector for SFR third the in Jason investors? taking remains interest Jade. any is on you partnering a

Dallas Tanner

want Scott, operating like color. people to in own that to have is with margins in leaning what's we business, partners that a more feel the operate in I to with run points that in market for manner similar time areas on interested and partners. One I so line the all very really that's free That's get efficient overlap. give and curious, could and first pretty add portfolios inbounds broad think point; be X then, prospective Scott that how have how only two, any want our the you. we're we efficiency that sort XPM, scale are help about and do and of their scale emphasize program, our that

just to Scott, there's nothing I really would radar, note, color that definitely people's think. we're generally but on

Scott Eisen

institutional really, partners that frequently. us, that sophisticated finding that portfolios look it's of And I as want and we Yes. get are think sort today. of to or we in people, were that buy different trying don't like-minded. that said, box some are a us pay. we're come terms us in inbounds necessarily people at for Dallas There also manage to to segment also LPs types not are And prospective I we with mean to for our come we about operate, where the homes that's think people the business of we markets where

to And that. focused on be so we try

is have and own with an But on for decide or opportunities are but the being we some all obviously those our assets. and those all portfolios want partners look when our would discussion the we clearly, we portfolio. assets like And these partners look get that of within single at us. bit portfolio, time. out And early every of dialogue. this in venture us partnerships, first of to our regular pruning obviously, of they a to for to for as our if And And future sell holders a a a little whether joint view over an acquisition third-party of is or of wholly lot, them when we prune -- time part partner at we partners a evaluate it's will it clearly, look opportunity and or selling terms our potential growth explore assets

Operator

from question Your Wells final follow-up comes Jamie Fargo. with Feldman

James Feldman

covered in I a question. Obviously, now you the we've is seen it Prologis last Welltower But raise a business. fund. of fund think bit pretty their robust

can't -- now your follow-up Just they're appetite regularly. do I I'll finite/infinite larger funds is investor single even ask since question a life JVs? And what for if it whether or

versus and what either go balance structures? we you case, on that's promotes could think your promote down a see or comp the to third-party how the So into would And structure? business you model sheet -- if -- would if road your adding about

Dallas Tanner

try broad just and what I sure think I'll questions, our make strokes about tackle Thanks we for plural. around to basically JVs focused on. how that the we're

mentioned to in we earnings a as in were of lots what added we high-quality As come raising very joint it lend creative our new to opportunities, partner both across the returns transcript, but gives as space, for as in another maximize flexibility with and shareholders that in here we for them. we venture reconfirmed will successful and primarily together we probably the look think is the we construction thinking us U.S. itself

to of last and creative we've venture been years. now, that Right is structures, focus capital opportunities layer really announced the structures us has go joint business different in this extra our to X It different third the the warrant and well. as and leverage -- of after history our gives an probably third that X the may

finishing deploying venture new right at now looking opportunities so other venture. And we're one in while this invest to

so to joint into easy opportunities. on how have we don't that as they as can relationship the detail And we the into capital, can we how are get I is that we certainly around sheet They ways what's And to. we transparent same the we that structures fit us for much these and structure are your smart to we makes argue partners, partners, deploying point and grow around promotes. any very buckets, all question that about on in a what unless looking need as their possible. that venture clear be nice don't to rotate well. think balance a REIT about And matter-of-fact, it collectively those publicly which to protect of would we we get work that we But think for are,

making us would say us at knowing I allowing more added time, so of opportunistic, that excellent growth, that that for is at partners It's more point look flexibility. And to have we've us give layer flexibility. I we opportunities in what this got added just think

Operator

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

Dallas Tanner

team. a really thank privileged our to us for times Invitation exciting and we joining everyone want to Homes, We feel are talented today. work such These for company, again alongside

exceptional Homes congratulating want appreciation gratitude him long-term Invitation helping pivotal the us to and leaders. in and also extend I both Charles driving Both They'll to and our Tim. in are forward play achieve goals. in my join roles future

the at everybody seeing conference. Citi to forward look We Thanks.

Operator

today's all That Thank concludes call. for joining. you

disconnect now may You

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