UDR (UDR) 30 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

Chris Van Ens	Vice President
Thomas Toomey	Chairman, CEO, and President
Jerry Davis	COO
Joe Fisher	CFO
Warren Troupe	Corporate Compliance Officer and Secretary
Harry Alcock	CIO and SVP
Nicholas Joseph	Citigroup
Juan Sanabria	Bank of America Merrill Lynch
Richard Hill	Morgan Stanley
Austin Wurschmidt	KeyBanc Capital Markets
Rich Hightower	Evercore ISI
Drew Babin	Robert W. Baird
Alexander Goldfarb	Sandler O'Neill
Rob Steven	Janney Montgomery Scott
John Kim	BMO Capital Markets
John Guinee	Stifel Nicolaus
Tayo Okusanya	Jefferies
Rich Anderson	Mizuho Securities

Call transcript

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Operator

Greetings, and welcome to the UDR's Third Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Vice President, Chris Van Ens. Mr. you, Thank Van Ens.

begin. may You

Chris Van Ens

quarterly conference UDR's financial to call. results Welcome

the supplemental were the during constitute are financial statements. distributed quarterly ir.udr.com. Relations press measure afternoon measures made package accordance and release In site, directly Web historical, to not forward-looking Our to yesterday the all comparable Statements disclosure and which with of may Reg our this we've requirements. most call, supplement, reconciled section GAAP non-GAAP Investor in posted G

reflected any after statements. expectations are the ask we will and no of forward-looking a your question-and-answer to undertake I forward-looking SEC. questions expectations When met. and based the and everyone's turn on Tom will questions reasonable assumptions, update the get give risk to that are detailed UDR's duty discussion believe call. answered over you can available on press the release We call the get assurance included Toomey. Management we Although do factors in our risks time we any and respectful of and A that will in President, not did statements in CEO, limit the with now we portion, follow-ups. our Chairman, our that be not call for your to be filings be

Thomas Toomey

Thank you, conference Chris, and welcome to XXXX UDR's third call. quarter

to call. results; our three will and our Jerry portion will points Operating Troupe business environment. the There and Officer; who available the discuss Chief well officers, are about Officer, like Chief key macroeconomic me the Davis, be the and today who with are Q&A Alcock, I'd On call Joe Fisher, as of make Harry Financial during Warren as senior

their all share discuss drove and good second during guidance in year, this First, prepared results growth in our outlook results per These increase ranges. and these aspects again Joe business we in our will and remarks. the same-store positive Jerry very of produced detail quarter. earnings the across

Second, the to This with apartment backdrop for will when remains future continue macroeconomic support combined industry fundamentals the underlying growth. positive. solid

will and consistent economic short-term As we performer landscape. expect a the apartments volatile such, in remain global very a long-term

Third, optimistic allocation the from We well bottom risk in all on flexible, we innovative over earnings standpoint, quarter are it, our remain adjusted we prospects. XXXX. in XXXX as that our capital to quarter continue turn uses invest the and to provide [ph] about results. associates guidance in line With confident for to Jerry. fourth and we return. details producing best and expected my our fellow corporate field that the remain lease-up as platform strong to from turning another From contribution communities it first I Last, will call. and we'll provide at you offices, XXXX, a the improved We'll earnings our thank

Jerry Davis

Thanks, good everyone. pleased announce Tom, afternoon strong to results. and We're operator another quarter's

Washington the produced as are X.X% of like to for the top-end provided as would from year-over-year NOI early I sale range growth Towers the X.X% D.C. same-store rates same-store in strong, growth of quarter this same-store note to the Please market revenue in were and exhibited X.X% NOI revenue September. X.X% business represents excluding sale, of that respectively. been quarter revenue versus acceleration X% and approximately pool, continued located have community XX% move Third total which impending commensurate and year none, the we're X.X% quarterly Circle growth every of we our the and follows: quarter, and in would is points for first, we've Maybe first quarters. indicated, held second growth seven in highlight our the Tom the

the accelerated Secondly, September. slightly retreating August before through in of end rents market

Well, years. typical welcomed. seasonality more prior was the durability three this coming season had of leasing we the has such, As throughout rent XXXX, exhibited prime market any the growth anticipated XXXX the into than of

stronger job XX is than wage markets in growth total our over and benefiting our by initial has average trailing definitely solid are growth thus have national an We that in month months. been from estimates X.X%. growth XX income basis basis XX last far outpaced XXXX, the Combined, markets points better which points XX

was realized first is for Third, every of rate higher growth XX XXXX. half year. and This period basis year than was during points lease points blended last during quarter the the XX same the wider basis what

well % to expect gap the our in We other by the expectations. fourth quarter, above this continue Fourth, in XX widen to grew nearly quarter. income

And a to runway and from with throughout These grow Our to continues a by growth pressure remains continue through platform by turnover of combined remain to stable revenue over saw primary higher XXXX. sector This for move-out in initiatives versus XX% check. as as encouraging well prospects result down of constraining reasons in contributor that is Real evidenced efficiencies and continue growth us expense taxes leading especially favorably quarter. nine occupancy our short-term debt XX% given we our X.X%. minimal expense see negative Sixth, date rent personnel bad grew XXX only during turnover or our points impressive growth to under remains last, remain process by by We operating year a many initiative technological rent future increasing X.X%. at same-store our multiples our rates neared year guidance. annualized controllable pressure up we year Fifth, compare purchase enhancements. increase at to when for basis initiatives operating entering the Year-to-date, XXXX. growth X.X% our turnover. home expenses was and should months. find X% to estate set came store long expense in at Likewise, leasing X% but same XXXX move-out

New Francisco majority to and outperformed struggle markets San face are quick pressures. forecast and markets, Boston with a versus markets, York of exceptions. performing the our continue The with of in the expectations our in supply have original Next Florida overview new of of Austin few a line

we date with leased, despite At with York, contribution to in when the slightly expectations, by million, in negative velocities continue in opened leasing and late development a lease to Pacific line leased. which year underwriting with we our our Harrison, growth generate continues to that initial us rates in XX% our New in of enthused forecast. market ahead May, pipeline Beach, the original its original for positive - are $XXX results. at expectations. aggregate quarter in project rental to XXXX XXX's line development we Regarding Last, in top quarter XXX-home $XXX XX% City at This, ended XXX Boston, to forecast ahead anticipated well line the At million keeps combined XXXX. of ended rates Huntington XXX-home,

We gaining continue traction. property this to see

JV $XX totaling two pro Our in rata million spend developments, schedule. on on remain and budget

XX% located West, well quarter expectations, ended mid-rise February. just back which the at in leased, suburban excess Addison, community XXX-home in underwriting in of the Texas, Vitruvian Our runs after opening doors,

the to over to on Attachment turn X for I strong corporate move earlier Vision With again available located price very quarter first field another five in performing XXX-home Wilshire quarter. in of having point the are Joe. in and our like XX%, associates it a statistics is community Los thank community, high Angeles, at April. Our just would at after supplement. on is that, Quarter-end months well all in and of lease-up our ending I'll

Joe Fisher

Jerry. our and fourth will results Thanks, guidance, quarter I third and a cover update, The sheet balance topics today update. include transaction's forward a

as of FFO previously and adjusted third quarter share the provided per guidance at ranges and midpoints Our earnings our in were $X.XX results came AFFO $X.XX.

to lease-up XXXX and year-over-year, our by we capital guidance $X.XX increased X.X% of Third ranges expectations. $X.XX year strong deployment. increased and would which offset real estate driven our points by NOI low to additional X.X% to increases were ranges strong growth to full to rate and quarter contribution you from blended latest an XXXX at FFOA accretion of the FFOA lease an same-store end XX guidance lease-up per Full-year same-store summary, by direct up $X.XX XX Attachment performance, per to deployment. same-store to supplement, second portfolio, now somewhat $X.XX. driven performance, or by revenue, was taxes. and additional Primary improved higher like of drivers growth from income upside properties, each and I expense include, our basis AFFO our $X.XX share the our DCP details from XXXX to X.XX% other In share accretive

our quarter, guidance $X.XX are fourth the FFOA For to for to for $X.XX $X.XX and ranges AFFO. $X.XX

Towers, the into contract decreases sale of during the conditions. over a densification DC fourth in The $XXX customary during sell in ahead transaction to Circle is XX-year-old, located potential the development subject market to exposure County to submarket our we and the XXX-home transaction; temporarily million. The expected Fairfax for close opportunities of coming years. Washington community a D.C. entered quarter, closing new quarter, Next, the

disparity as towards we cost to come and completed balance rent do remain our over stars our disciplined legacy Most we stabilizing development $XXX forward continue and development. to on constructive last increases from economical $XXX between in our land expected growth of JV on have most development, and the million Regarding to we pipeline range forecasted to and from several challenging, given our earnings million in quarter, XXXX opportunities. these construction path next remains million depending densification $XXX so Similar a and sourcing on remain markets. years are work in the to the opportunities our underwriting of sheet land

and closed program Santa capital apartment funded. weighted XX% yield quarter, has in in million are aggregate more Philadelphia XX%. of of a and deals, are settling the Orlando $XXX total front, located have commitments and developer to on million, seeing during XXX commitments we opportunities and average third $XX new The bringing investments represents our the homes On three Monica, which been

capacity we'll we details. flexible capital see our we further the pivot to adjusted for to to the take of risk Big available of with $XXX program, incremental picture, continue return. attachment deployment and million. currently Within advantage best have XX-B $XX Please remain

fall our As opportunities uses within long and forward and meet plan. our sources as the hurdles

general X.XX% a our prepay commercial cash billion mature of facility of extend scheduled balance $XXX minimal at Subsequent capital and after net XXXX quarter facility respectively. and and a end, and basis capacity, in debt of we maturities for December both credit liquidity paper and to XXXX. our coupon the over secured out was dollars reduce the loan our points debt quarter we revolving $XXX issued to effective million. Next, and by measured At debt and $XXX as of Proceeds will leaving October be in X.XX% hedging. million, a coupon and purposes, originally maturities corporate unsecured to to used balance spreads basis amended end, X during markets million credit to X.X% by sheet, points term XX-year $XXX XXXX X.X million quarter LIBOR $X.X

an value Our on financial and on inclusive XX% of XX% joint leverage was the XX% enterprise book un-depreciated value, ventures.

credit down. X.X our it Our With continue to consolidated size joint opportunities unencumbered regard EBITDA an the positive and or was NPV comfortable sheet, was our don't and up times. to net for plan remain our increase duration we actively to year balance X.X of and to the ventures, to with of will of metrics lever NOI We our times profile look pool. debt improve X.X inclusive

as we that, a it approximately $X.XX end. Q&A. yield third $X.XXXX up for With in or common open Finally, when will I dividend declared annualized of share representing X.X% per quarterly of a quarter Operator? the of quarter

Operator

Nick comes from a question time, session. with Our with the be Citigroup. Joseph will question-and-answer Please question. conducting this we [Operator At of proceed first line your Instructions]

Nicholas Joseph

Thanks.

the continue make, results? XXXX to XXXX lease-ups, development versus what's expected progress the earning in the With on on impacts given you development we

Joe Fisher

Joe. Hey, Nick. It's

we're coming of plus previously, $XXX the relative year talked this off rate. consolidated That this year about to of of we development. million to yield a producing penny mid-two's equates run about FFO As about dollars dilution a

continue contribution assets Next think occur move will stabilization, which to fully towards a probably to once we year, XXXX. two-penny that's we about on as get those

Nicholas Joseph

Thanks.

add DCP to? deal you I market is Philadelphia, think in you did exposure to the that want the

Joe Fisher

Yes.

within the existing venture. have there we asset So already joint one

more talked about So show over years. a that well we analytics little and bit but operated over next and the these screening models we've relatively have a XX predictive market more, time, is we do tracked on is Philadelphia four as that to

jobs, to pretty medical that jobs, demand jobs, and factors continue well to contribute of to all addition factors the industry-specific So educational us. screen technology macro

back $XX a that was to deal. upfront the plus get good [ph] this as So DCP Obviously, press well through million way a market participation. enter as in

something but to it's more little good we a So exposure a us way good for continue get look bit to to market. at, a

Nicholas Joseph

don't currently you and you Are Thanks. are any there underwriting other own deals it? markets

Joe Fisher

we said, as other million markets, that And to that quarter is within just we're modeling typical a own other but and that fund reminder I do a that we quick time There committed already, just to we a no want have remind no everyone do there's to in you. as From considering. announced that market DCP. standpoint this $XX to we similar development. do I over markets those

a followed So, first, I by about you equity see commitment, goes those. four-quarter with funding typically in our followed by loan. mean construction profile

modeling over as time commitment from $XX a in million just that standpoint, So into a earning. comes

So, in think keep you XXXX. that as to out mind

Nicholas Joseph

Thanks. comes America Operator: with Our Merrill proceed from of your Please with next of question. Juan question line the Lynch. Bank Sanabria

Juan Sanabria

deliver to and and meaningful thoughts on Hi your 'XX slippage, give I'm just year-over-year? expectations you which are see 'XX think going guys. updates on in latest your you supply declines for versus hoping pickups deliveries you could think

Joe Fisher

Joe. it's Good Juan, Hey, morning.

at expectations our go And haven't markets and intelligence We've on permit XXXX So changed of down that remind about point. combination from XX% really just in the overall. utilize that field. been we regression then third-party models, through, this to we talking our the base for data, process to flat

in that those this when XX% feels at point up, still flat time. So roll you appropriate

to Coast, you when the markets the and coming by Empire, in and the Oakland, at down then basis that I we the on looking When down come our down, New markets larger typically national be the see trend would D.C. we of is Seattle, the of that then probably up that for as L.A., and look further XX% you the to that. have ticks activity, up coming as markets as a number in coastal MSA Orange that markets that's across well away Denver, by Boston within starts level, out that West East down holds typically with permit City supported And Tampa us. on around well from increases well. and Nortel in on look think drop XX% to markets Nashville as York down Coast major probably then a be and Sunbelt County and terms Inland

Juan Sanabria

that I growth more that you. income item, just than on and then Thank line XXXX forward, the about other the in your others? know markets to parking to more be going guys And thoughts certain contributing Great. and problematic you the profile? is would sustain ability

Jerry Davis

up contribution towards biggest a but than is of and markets definitely those Yes, are to also tend be average. Juan, up in markets, dose the quarter, was short-term parking other other was about -- It a where some XX%, coastal was get this it XX%. Jerry. Seattle our only you where the more contributes Washington income heavy two a income so D.C. this not about rentals. higher markets bit Boston about from growth largest get significant furnished by with from XX% The But

Juan Sanabria

you. Thank

Operator

the from question. your question line proceed of comes next Deutsche with Our with Bank. Please [indiscernible]

Unidentified Analyst

questions. and the time Good afternoon. the for taking Thanks

like see of San of renewals Orlando, it a than as Francisco, lease or as Monterey, multifamily had situation this looks we growth short-term it a in do your the of markets, is handful the as new the you such market in So XXXX? more perhaps higher indicative occurrence strength was

Thomas Toomey

probably more It's term. short

fourth site. as quarter. do into as fluctuations see more the tends And see You are the to you'll and the as on noted quarter they today in you're stay you static you've be kick fourth to where the you'll with growth see tend rate to quarter occur the seasonality but see going go as higher during new pretty renewal well renewal first

peaked down. seen subsiding extended will an rents for you market in tell more period performing been where So The that well. years markets come May before grow know expect we've two August, the I normalized you this of rents is so continue prior us leasing Overall, through have I But to would to September. somewhat year. a in market

into going year of side it the yes ago. stronger do the see bit a a So was rent being we equation than XXXX

Unidentified Analyst

recent caution term high. appreciate short basis of much the from it in as end Jerry, very highlighted And reasons a to occupancy call could was you've but that had potentially points rentals, occupancy points XX you the for it benefit I basis calls follow-up guidance third high drop Thank seasonal that. your the stayed that quarter you've XX on pretty

any have short think headwind they evidence potential these stay seen how of longer occupancy you from So, the out? renters term here? or Are continuing this to maybe we about moving just should

Jerry Davis

we're of seasonality, out on running it. move do definitely the middle we today the is with there and in level about had summer They probably half

by those renters we've you still out to people so but, it point take bit short XX-month last And with XX have both term higher will wouldn't kind than reloaded this our drop today was a actually see but out quarter periods, XX year's XX% see points. in effective basis expect points. you So pump occupancy been occupancy, turnover of a our it under down would is I was turnover basis I just so quarter did if a rentals in the

have I does season. are that just to said impact throughout higher able it but we as So, slower maintain occupancy an levels the that on

Unidentified Analyst

you Thank right. it. much. Appreciate All very

Jerry Davis

You welcome. are

Operator

Hill comes Morgan from question. line Our with Please with next of proceed your Stanley. question Rich the

Richard Hill

How your micro I'm or maybe you? could guys market great consistently a have to quarter-after-quarter. basis. some from seen make it of ways York some more a put you peers markets about So, market We've what are by up sort of City. New from And results more look, bullish you Hey, thinking I'm guys. even aspire maybe bearish, started wondering here on

bullish might be you if on So them less what you're bearish market any I'm where there's bullish previously? less or than markets on and curious, more

Thomas Toomey

into We all probably Joe the or the this of jump Monterey probably performed have I in and can top think Seattle, well XXXX go markets as continue the Peninsula, markets weak into Tom. you revenue start while I'll growth it's that Yes. see whether weakish. our Florida, end Harry or either stay year

Baltimore While by performing indications based think know new and York I it is are results to exit getting we those factors. add absorbed of quarter, I year would as continue anything short-term to both gets year evidenced Do year. markets weakish don't be one the But our and still if worst guys to you that next add? a year of early this will any New we markets little our have next this see supply on that delivers as net or either stable Austin more be next

Joe Fisher

No. business I'd just say the covers Rich standpoint the perhaps broader that from markets.

In terms hopefully capital the side, deploy transaction have options you'll I you've think capital some excited harvest us gains on through of we see what and our out of joint venture up Wolff to the there. seen we're to coming develop us about continue quarters, the coming program; that over several

front increasing see as is excited somewhat deployment to going around while were that the of going us course out nature and to options pretty we're the they impacts development for maintaining still capital find continue free of additions required The redevelopments, and way thing well the as pipeline course all traditional a and on rates be stabilize of to only worrisome think higher. I things so dispositions that discipline returns capital sourcing that through flow. cash net would we of try unit to

growth to time, of and getting managing over floating degree. you with I debt funds there's job activity - maturity hit rate, out but -- of into a watch we've refinancing rate the done and that think great a obviously ahead if doesn't that profile So exposure eat good Fed

kind just and So of positive the the negative front. business from it's broader

Richard Hill

it. Got

year leading opportunity? you given to are advantage I'm look, maybe Joe, development to a GSEs just any you're the on the development competitive continue than seen ago bigger seeing cautious you more are pull and more a program, that's the have pullback if even you follow-up just more on program back, wondering one so, lenders this you maybe or we've positive from maybe And quick capital were

Joe Fisher

about years and be degree, definitely for you that fact that opportunity us is coming be past good out quarters, fact are pick consistently fact had There the could we've you see to the more down. seeing pretty points. at in and to permits What funnel out starts as of for there point, a execute, number so to been now the we've the we been partner to this widened opportunities a activity of choose talked allows there more able a and to been a we've which these despite we couple your as that developers

of bit, it, perm your the hasn't on last the call that front, nothing In of stack terms compress we and or very construction meaningful cost GSEs, side spreads last over to the little where seen taken moved construction since financing they years. the really piece piece increase active. of on offsetting not talked of a but financing terms senior the definitely little GSE of LIBOR up the loan the comments And in the the about seen we've be and a on couple much quarter, in to bit, continue

think They're bit we're looking X if each. the side. out financing probably competitive side, competitive, on $XX bank duration you to when side. lower typically perm you going is I the financing, do on to levered longer know, but more When on they're money, on pension most the doing we're XX-year out the go to billion again short-end fixed you're a a the definitely rate the money little security the Phase

Thomas Toomey

Program, with I the as of mean, Harry of the deal a has Great, first add know Rich. to after good number the closed a relationships the second time And This is someone a about you Capital Developer done lot Couple time around. you it's job easier Toomey. things having there.

net pretty expand a think it. got re-look there'll fishing the opportunities there go And with at good program we I that want down of and so, plenty you be to should and to know we've road

Richard Hill

Got Yes. it.

Harry Alcock

down. this investments. about for type the stack down, of And it out, a also of position, come Joe debt is the which talked creates of capital coming has remember kind this to close Harry. sort just I capital lot capital equity

couple Wolff continue we a going as opportunities the up. coming mentioned, see forward. Joe are to options And So,

which see events new the which little a next deals over So next go few you'll of $XX capital a months, out and year. - us give to meeting repayments ample capacity into kind reload does million over back

Richard Hill

I it. Got Thank appreciate guys. it. you,

Operator

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

Austin Wurschmidt

Hey, - guys. being one talked exposure, exposure on there lightening market the on Quick you DC about temporary. up

Philly You've mentioned interesting. being

I think you've over about talked L.A. downtown time.

or just markets feel that exit these curious other the what So looking in today overextended markets? you a even maybe little as you're of capital you to enter like could some be source of or re-up

Joe Fisher

Hey, Austin, it's Joe.

that exposures, $XXX way From of or resources. In is focus of million and a into we're going going market deploy can really we terms where I'd million kind say standpoint, the source a to we're the to year. look only at $XXX disposition capital we

exit so, So, an opposed per choose there's the DC we asset. to reasons case that times may often or one two reasons of more year, like assets as asset-specific to MSA-specific in

overall, we of exposure the terms peer overweight relative DC the are index. In to

as as I exposure think have little Santa stability we there like to which another market market, the quarter, did Monica to. one well to We continue you at. deal that as we add are our market for to provides. bit try And I that to we other the Orlando, did L.A. that looking exposure, DCP of think one us Philly expectations out if the did most some it screens a continues well. a look to having long-term deals but across more the that well is given to we in be in and we'd that in a that we like

our next I activity looking that portfolio the think our really see we no deploying or there's we're or today as you'll do see but if markets any and to shift. capital our wholesale exit that So, us here you the of in over so, appealing, kind follow resources year markets necessarily

Austin Wurschmidt

today? in Thanks where then much big are just a stack newly one the that is for that then -- more sticking versus And it do difficult? DC densification land opportunities or opportunity you've and portfolio the how And portfolio opportunity at being across an of returns taking mentioned little said maybe cited the DC those curious that. with broadly, how you up but specifically then across you've sourced and there, more

Harry Alcock

is Harry. this Yes,

to I level like a of I of very, units those hundred some the some of just or down. opportunities any DC couple across case of opportunities about lease units all probably these somewhere development to And to thing. think much they're ratio have of your units call the type that reality new city hit, imagine. doesn't Each several we've total some you in of economics, cost, land may the guess just at once to we of they it's and require have in think densification can we'll of talk opportunity. development it's the if got as terms I a between to torn portfolio get very down those in and but become level high we of XX% going to that understanding approval size It XX% typically mean is, tear it, zero buildings land easier but is

be will low. quite effective the basis land So

overall basis XX cost the you premium point if meaningfully be XXX higher. I development. to sort over lower, that figure, XX% is should XX% So your overall of basis mean, point traditional return ground-up to

Austin Wurschmidt

Thanks Harry. the Great. for detail,

Harry Alcock

Yes.

Operator

your question the Hightower Rich next proceed with Evercore question. with ISI. line from comes Please of Our

Rich Hightower

afternoon, Good guys.

changes between urban? that that tax home the And maybe covered ground attention law Jerry stats should mortgage across and be lot we And if for of on markets some gave can move-out already in in I throwing see on this to? earlier. a But just you group going rates suburban up call or out just of have any noticed and I'm some know light You've you changes refine to maybe last anything out the year's you to purchases. trends but of changes, paying the from

Jerry Davis

home the are the percentage to you prices the look a when markets last year pretty no and changes. urban And you which at where ones the tend at the Move-outs with of have Sunbelt to purchase no. about it's coastals, you flat the be Honestly, expect Suburban ones so move is outs over move-outs. higher for to for would XX% move-out, real reasons a the home least typically

Rich Hightower

efficiencies And then with that you to offsetting just given and year-to-date expense more respect long and around much detail continue takes in terms year-over-year personnel -- are how just down helpful. that kind tightness the little the being runway That's a labor period, puts how can you Okay. of in how of -- the maybe there?

Jerry Davis

give in first X% I'd range. I did our say we that is Yes. last thing typical year raises mean Sure. employees performance

growth by them. of our on showing and us by outsourced, are kind to been efficient we able had able be impact that. revenue they What or those I a resident start guess being think X%. would renewing that of analyzed high in on residents at impact been the way growing find times is and either more done helpful. to But with have and no to functions benefits the is able ways that time natural make by a think let's we've of base it I outsourcing at really we in doesn't teams attrition seen some deltas automating rate. satisfaction There our if our -- to we'd I least So efficiency, at number it's

higher The properties. do multiple other opportunities team members manage able to for been is create thing we've operating level to

So it creates them. an opportunity for

look last that residents where think that We've this. us. at we're ago years We this have the introduced we've in stages but benefited to I still early of our continued hard they started year looking platform has working the think self-service prefer year So automated us it. on shown I

more there's I opportunities. going as into some to we think, future, move our be

year. don't I So, this it's think just

efficiency. to able continually ways find think I some to create we'll consistently be

Thomas Toomey

lot back going imagine a are going at was cost associated did years and Rich, And for really see It the really on of continue really with you efficient. the you high more launched about standards find now as model we he and self-served of a the study technology, with what time ago Jerry's right you over to of were a come high most our functions the business operating And perform. of to you're of them we're four top make a at today analytics benefits can And ways template variable, the structure go it, when what everybody reaping people to with future. take that to and the motion right all through all for determined for workforce. what's this

Rich Hightower

Got guys. color, Thanks for it. the

Operator

Our Robert comes from with Drew proceed of the next line Please Babin with question W. your question. Baird.

Drew Babin

both and kind Street on relative Very to maybe expected talk good then of occupancy about kind these about didn't much should on City, just rate. as talked Harrison XXX City, next we stabilizing by dates but where just projects there? Pacific or year as morning. A in quickly end quick initial where to of think of expectations. follow-up I line curious is And the trending rate with be, was you of you the Pacific

Thomas Toomey

Pacific XXX on rates current to call City the Yes, it are, XXX.

closer to either So, stabilized you of just much. say stabilization, what a under think going first we've the our deals both would trended I underwriting, And know the the in hair original on not quarter. but I you're

think should you property has city. XX% affordable of we at process the thing You Harrison, moved would XX% we XX% the out, that the end the of at through about I still quarter, And were that units in with in while early point have leased were know that first going one lottery when quarter. the XXX

property or exceedingly the XXX so in that range. well not rents So is as

this. you to we're well, continuing So over we're Pacific we're- know the but lease City into year lease up a at on

would will that give or amount stabilize So, time, backfill for take you're the expect having to at we also year-end. same some but

Joe Fisher

Joe. Drew, this is

bit Just to that in color terms more you on little yields. actual giving on the a clarify of

referring XXXX we was XQ pipeline in to quarter, which in stabilize high-fives. So stabilization the overall the think on the Jerry

mid-sixes and and be a you mid-fives, in will the it out in in in which now stabilization probably Harrison so, - look out City and So at stabilization Pac somewhere in XXXX six high-five - our range; in when have also quarter assets Vision on in range; the X.X the XXXX. overall joint the a in difficulty] venture then XXX stabilize [technical you two the

Drew Babin

you in Very the whether kind year all saw the seem XQ -- helpful. year-over-year sorry, about the sequential MetLife than within or last XQ? JV in And can of rates last leasing consolidated as improvement better just talk and question portfolio time Okay. here at trending JVs. blended of kind on trends this - were some They lease did they the at you you

Thomas Toomey

bit, which same-store, they property quarter. as on the from quite level front at still year have I Yes. a not you They up of up the are of a improvement popped don't an as pronounced in the by are our can basis. revenue - versus the XQ on But last to it's in over last not me same-stores data XQ by XX - X.X% Attachment property in see the growing

certain the Village, and still of Square combating Downtown got almost in got as San our JV. - the one are new in as the as are properties they portfolio our XX% then well You've Addison those slightly have don't And that properties which Upper so of West a negative Diego, - properties That Columbus the is pricing supply, you've other it's whether some few that power. Side, Denver, in East in much Dallas. coming deals in is

Drew Babin

That's from you. me. great. Okay, Thank all

Operator

question Our Goldfarb O'Neill. Please Alexander line with next from with of comes Sandler your question. the proceed

Alexander Goldfarb

and morning. the and if to to hear adjust industry morning employees you it's Good on there. being an commented workers. a the first you hand, trying companies you in find question of the trend turnover find Jerry, out endless certainly on, trend. expirations lower on for quarter about it's is, unable been But Good been amount other

think you down. for you of that are that that moving are there that do guys are job looking guys around what that that's for do but apartments turnover seeing. are residents, competing workers level and hopping the being we seeing a how they companies certain is I What what So would at seems with turnover be not to or you? we're if companies property are not rationalize workers the driving is increase think in lot yet

Thomas Toomey

but much of have markets. all We're still all in really in our hopping employees pretty not you're new they much see the I because so seeing for much our cities think demand live there's frequently I jobs. markets, to lean the job do pretty find not of really in having

Alexander Goldfarb

older side an move. and lot XX transportation to of you much. Two, to has hop With as they making is it's rental to paid there's another, it tend contributing mass years have infrastructure so to of there's a think easier number I a not base, it old, a Okay. one get from city -- and factors,

Thomas Toomey

Yes.

Alexander Goldfarb

a is excited. pay It I'm

Thomas Toomey

Yes.

So few I turnover think a things to down. keep there's

even other lower in this and better are service, into where but a I rationale our lot our think month estimated. freight, out XXXX markets one each is think that pricing a is will and seeing came that people all addressing of customer the payment I if providing XXXX phase there is people we're we not in more I thing think offered you're two

with think I one that residents you're stick pricing free if you happy, keeping your the So, month longer. they're with going normalize methodology, to

Alexander Goldfarb

your Okay. then York you York New curious mentioned some was some you of still of Do lightening XXXas you to New think holdings your can few you've a consider is. that see peers, York second just of sell your sort And of weaker and in had view your that what that may or is it and question one New exposure your pricing unchanged? is, assets maybe of your now markets, you XXXa and selling

Joe Fisher

this Alex, Joe. is Hey,

the like that any comment to and on buyers for going sell going the that markets that a to therefore be within buy the pricing aspect, over Just decision underwriting the we XXX their independent of received. account

where look going necessarily decision. to specific you drivers years mentioned be overall. But with New the well in is period been macro York, New market improvement a and think whole drivers a driven on getting not we York now a So rent little XXX late. fundamental correlated the the do as to of we when not bit sluggish put But at the we're a it's growth is in

year, so, to underperformer from an I the you New next necessarily years will an outperformer. four a starts think And potentially next period York not where going see forward or over but live to so

talk think us So, at on given opportunities. we're York. That see about say we New that, as lighten looking I up don't also you'll redevelopment

is that basket. York New included in

air. But and York focus whether that more in the capital rent or So, our the or affordable there place course discussions. as business left qualitative additional of of still flips piece The hopefully we is and up sense the not the therefore can it's stabilized this point, the find and on leaning at taking New to of more some part in that Senate factors piece get makes New York last something deployed. with what's of

waiting or to in we're what takes So, the next so. see place week

Alexander Goldfarb

think potentially rent control a obviously but the I Yes, it's mean issue. is underappreciated, I big thing it's

appreciate So, Joe. your comments, I

Operator

Scott. Our next with question your with Please Steven comes from Rob Montgomery the Janney question. of line proceed

Rob Steven

peers thing? this Seattle Good beating than being day, or guys. it course you're Jerry, A Is growth, in other handily terms revenue something just Is the versus else? in thing of income sub-market better of pretty thing, a B the same-store other operators. a

Jerry Davis

above. All the

Thomas Toomey

supply it added the we're other this think lot is say a our east more factor, to probably year. it of lot of I all basis the A it's is I'd significant points this and XXX a side west do than side Yes, is growth income above. side. at west But

an operating So, I you, tell I time been And think team in that's long a that's for would we a fairly exceptional Seattle. sizable. together have

is best that So, regional this team I in think sector. the local

Rob Steven

another number about I that there supply Okay. can in Boston land in the all the And you'd units currently Harry completed the greater in At like desired Joe it other of returns or then, if in next project page, the that that levels your one years of last given and you construction couple over market that just you the then, And of in thresholds? on online thinking want Addison in then MetLife summary XXX cost in Vitruvian, you bring are do how got projects out you've and over is any Dublin JV. these looks the of given current guess to units meet market? of

Harry Alcock

Harry. it's Rob,

we're months. future, working So that the in but still land remember just Dublin a about on here land relatively can the on that we time, Vitruvian, we've construction at get that compel in XXX working in sites near - the the hope our we been for looking is to six our would that. the leased start economics at units long

we per XX were about So at units that were that leasing - we month.

we So times very sometime phases we two working increased or next next leased start rents with expectation those economics we construction it could that the an But actively the up X through lease-up period. quickly. assuming on the work. remember, we're that on there It times X year

speaks there is - that leased So the three the at that for exists it -- point, submarket relatively projects example uptown rents. that significantly very a which that to price built below other significantly which well, we and point affordable which in - the when demand that up below price

Rob Steven

guys. Thanks, Okay.

Operator

comes with Our with line your John Markets. proceed next Kim BMO from Capital Please of question. question the

John Kim

Good what remind morning. On your make underwrite own DCP potentially the program, to can us of you you just investments percentage you

Thomas Toomey

estate make -- that's developer into the we're John underwrite every time want and is ultimate sure we go we a to the investing owner. own. markets if that that in are to we're We Yes, it real want capital are what going do we that parameters, to program as submarkets

terms of hit successes out In Denver had over rates, deal our couple time, the of a here. coming we've actual of

we've the had southern we than down we on also coming able -- greater When we to XX(b) the couple those mentioned others options have investments, Section think to when value option execute to of exercise that Creek, within and on a able we'll is other that of DCP that on been Steele of execute those walls several go market able be terms explicit none we're In to down the price. on. you other and

to position three, a the of into those get away. do some by rate with fixed assets table a of capital have an do above existing two relationship and in but we trends the being end participation, seat time we at the seeing receive. in having have those or maturity them that those stack we do think, get we have Hopefully, we have the opportunity operating economics the beyond and But still in four, so on over of You years participation the are equity. profile five that back the

we've time some So those. on got

John Kim

other contributed that initiative I'm that. for if in you wondering that discussions you few the cost color years? companies And next you're that mentioned Thank impact technology with and Jerry, just provide may to over has any business your could you having on your personnel

Jerry Davis

Yes start our next technology slowly you - to couple start implement probably to into units. over years, going the more of I see home more know us implement to think smart you're

which think And it large it's for You majority workforce does convenient something that from know of more I our about something it efficient. the do much good also think make I their to residents makes going because to life explore thing lastly, get pay around that is make believe easier to much that start as more our more touring, self-guided tie we I a going it's we in to it's for communities. residents our to them we'd prefer guess

advances you're aspects. going in see So I think those all of to

John Kim

you. Thank

Jerry Davis

Sure.

Operator

your comes question John with Stifel. next line question. proceed with Please of Our Guinee the

John Guinee

you. thank Guinee, John

that a invested impossible million Just Monica was very, Monica. develop not you Santa Santa question, to very about XX if curiosity property very, in unit $X.X in

pretty attain So, returns? XX% like I'm sort that years rich to the deal, able And that history which deal? be about of on just why of would four curious you return a seems for the

Harry Alcock

So, Harry. John this is

pull that process very the through history that he of actually begin that he a entitled getting on Santa a landsides working and history success so history the can them in where Monica developed the are long city deals dozen the they permit in has construction. getting of finding with a were point the half has to So, landsides a working entitlement lengthy developer one probably

the background. developer of that's So, sort

given In took we stack at most be XX%. whereas of one, relatively to just we a are of lower of We position high in return. the was and go given cost. market, a up fixed capital the out our typically other going In that high-rent actually that one a to this lower XX% is returns this about even kept that this relatively cost remember, returns in deals the than in terms

cushion investment. to to four So, even coupon with years, viable over have that order make we this three a in XX% sufficient

John Guinee

what that is for per on thoughts any then And the development? unit particular total cost development

Harry Alcock

to close a unit. $X It's a million

John Guinee

Ouch.

Thanks. Okay.

Operator

the from with comes question. Please of Okusanya Jefferies. your next line Our proceed with question Tayo

Tayo Okusanya

outlook you positive quick afternoon. less of of being York XXXX, kind data it all be couple New will versus XXXX, in much right New Yes, thinking of maybe how XXXX? about than ones is in deliveries given industry A for as contributor drag more are instead the in now just a of XXXX being about for and good of York talking first of me, some the a

Jerry Davis

in in ones the delivered this year Tayo, have is we have you're to get Jerry. will the still the are more those district Brooklyn well that know City in against that as price Murray and financial slowdown well as directly right next deliveries going Manhattan as product this mean lower the as year, you well the as to and they're see down compete of Hi, Hill. Island that I percentage units as heavy as Long absorbed our same

year see be slightly New you a year. do York revenue So we in come one to know we're continuing of positive. next our going lower producers to This

term it's Joe I bit as but the XXXX prospects it you by year. know comes I a in measure. think next really think play probably long But improve don't said to we a for great like York, to New going earlier,

Tayo Okusanya

the it, have just missed profit then the and That's corner? make may given earlier vote helpful. kind but And I did any around you Okay. about commentary of

Joe Fisher

the we'll less seen right Joe. and polling have talk top of. it happy read. did as than so we've Hey next on that with that corner, not been mentioned around you've about it, week they But or Tayo, is we a more We seen significantly either come it's lot on to the are we the

hold the rent solution the messaging to is So supply. drives see that in less issue that one taking to happy control we're of think to one seems we the don't that -- future or housing issue coalition California by affordability the and be the and

we'll So, about have next the less talk next see week. hopefully seven days, in takes where to but we us it

Tayo Okusanya

a be Joe adjusted risk your think line, me on reward comment basis. about risk Got in one earned about difference you. a attractive And as in then this just -- reward, more, you you just indulge will it as risk rewards,

me now or or you're of have, finding finding attractive? re-debts what help kind or attractive that's rank just lease So what what right most you're

Joe Fisher

Yes.

opportunity So at we're risk dollar going to look to total also in but size. return terms relative it of total

would So that dollar if ticket options aside DCP, go you we are development, opportunity set that Wolf. lowest acquisitions upcoming in with the think items, from money acquisitions, rate into the big on two the meaning

where cost well deploy process sheet couple Next Harry densification line continue have balance opportunities through as mentioned and up to we on on opportunities of capital think desire risk development, we we'll and return Then there that as DCP dollars and you've would is. and to a be work to continue a the and of sight have hit you think rotated they sense best to those acquisition make return the we over down throughout we've DCP, development where kind the taken -adjusted of land hurdles. years seen that sure expectations gives we our

dollars. of as in ticket enhancing, of we big items, On the saw not plenty de-debt there. smaller revenue opportunities meaning additions There's

to work more announce still do hopefully So, more and the there have next XX we to months. in

Tayo Okusanya

All right. Thanks. Thank you.

Joe Fisher

Yes.

Operator

Our next with line proceed from the question. Securities. Mizuho with question of Please Rich Anderson comes your

Rich Anderson

XX% sort some things Sorry next going; was mentioned down when keep that you to slippage of couple factoring much Joe, year on as assumption? supply, just as in questions. of a

Thomas Toomey

to how Yes, correct, year. Rich. it It's thought similar about we this

We so are and and supply expectations the markets permitting led our within apply local approximately XX or has at to that slippage activity [ph] down slippage -- factor, XX% there. looking our in some

Rich Anderson

Okay.

Thomas Toomey

difficulty] next couple from last months assumption slippage [technical as we of this year. some that into well As of the an year

Rich Anderson

Okay.

or next else would speaking. So, supply everything constant into fundamentally be year parlaying that market down - hold to good, lower

families side incrementally the variable older of up an it's more on and XXXX on line all of inclined some course disruption out Is you or The have that about you you whether to it side. sight to sort into there coming other better where being starts getting is than net 'XX? like anything of do demand start millennials year perhaps feel when XXXX look demand

Thomas Toomey

you've to anything there's think in appreciation don't mortgage older last or X% three and X% you've believe XX-year horizon XX%. in up the price given home average to XXX range that millennials -- getting seen they on X% preferences. life the or don't rents over the rates basis I about on seen are changes to that X% points, four front I about years, relative go No.

to housing relative trade the multi-family our So, tilts affordability between side. obviously and housing

side wage up So, And the comps that growth, on growth against overall I think remains demand employment. on front then on think I full tougher steady. front, job you're running

to So that. I wage job growth outpace seen continued is may what come But and think down. we've growth offset

supply, or So term a income total this down of you total kind down that next of year demand you have slightly longer probably the have kind equilibrium, and this growth, of of income so from probably inflation… staying phase kind slightly overall

Rich Anderson

you thought last for I question, do of ever how your your company? guys public And any And whip can you you them between correlation history Okay. changes growth if changes that just done -- long you revenue can would… of in up a as right on same-store now, us a sort over quick if sure in supply I'm impact can, hour you

Thomas Toomey

true we rent supply growth, haven't a about too. that on factors near-term think supply the it prospects consider rent relative done and near-term when of one bring and to correlation but -- of growth we of both clearly It's we demand the we

be So it's subtle. to a standalone not factor,

Rich Anderson

Yes.

Okay. Fair enough.

Thomas Toomey

Yes. is on that's me amount made years And he what will. efficient that XX-plus more data an and and more I'm transparency would market you for I I striking the of do have tell of starts and this. algorithm. has I the doing available sure is responsive. don't financing have

something the drops more will, if so a the would And be we then anticipatory, responsive, of where occupancy market the through the past. eras you in of market's equation. supply suffer XX% XXXXs XX%, to overbuild and XXXXs And and much towards seem

last So peaked rents. couple derailing be markets, if ever of years supply negative I up this where even to seldom it's look don't And went you see few on very us. at

in So, past. know the dynamic diligently has And same you threat we'll it see in I opportunities. that keep for the gin don't just been

Rich Anderson

-- likewise C rents perhaps type annual basis on than But double-digits that Would your a casting to with plus rather more is type well? agree again. as of ever grow CPI business ability of you

Thomas Toomey

bit little almost Seattle a look you that's and like were think cities markets dynamic because I regenerated. where different at companies new So

of scope is even formed, we us this have is there a what similar the and capital most future demographics. lot probably wave differentiation where I that's fruition. out going going in I and of three we more is through to millennials coming patterns are a their at look going and if So, bath right higher group There's refilling of those bedroom, for people boy, used slots acceptance I to is hiring what to suburbs. does two get are for out So, think renting longer going of going periods? and to when it the size be around that and a be to we companies, kind millennials and a have the all come age around to think this go mean, homes wave wide behind look the of say

a we it long maybe like but game. will for just saw So, it be running like not a XXXX inning week, long looks last game us

Rich Anderson

right. All

guys. Thanks good. Sounds

Operator

and Ladies queue. the further in no gentlemen, left there questions are

to So, call I'd Mr. and remarks. CEO, like over the to hand closing President back Toomey Chairman, for

Thomas Toomey

you. Well. interest you thanks UDR your time today. and first, of for And all Thank in

And that, business out that And good very and call look are in you As many and we San for seeing forward out in our I to they we next to this the of is the week. strong and and get XXXX. the Francisco, year into started take all a with grateful forward year have teamwork closing associates certainly care. look put

Operator

conclude today's teleconference. does This

lines time. at disconnect your participation. this for your You may Thank now you

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