UDR (UDR) 28 Oct 212021 Q3 Earnings call transcript

Company Profile

Participants

Trent Trujillo	Director-Investor Relations
Tom Toomey	Chairman and Chief Executive Officer
Mike Lacy	Senior Vice President-Operations
Joe Fisher	Chief Financial Officer
Harry Alcock	Chief Information Officer & Senior Vice President
Andrew Cantor	Senior Vice President-Investments
Chris Van Ens	Vice President-Investor Relations
Nick Joseph	Citigroup
Rich Hightower	Evercore ISI
Rich Hill	Morgan Stanley
Brad Heffern	RBC Capital Markets
Chandni Luthra	Goldman Sachs
Amanda Sweitzer	Baird
John Pawlowski	Green Street
Juan Sanabria	BMO Capital Markets
Austin Wurschmidt	KeyBanc Capital Markets
Rich Anderson	SMBC
Neil Malkin	Capital One Securities
Joshua Dennerlein	Bank of America
Haendel St. Juste	Mizuho
Daniel Santos	Piper Sandler
Alex Kalmus	Zelman & Associates

Call transcript

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Operator

Greetings, and welcome to UDR's Third Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Director of Investor Relations, Trent Trujillo. Thank you, Mr. Trujillo.

begin. may You

Trent Trujillo

quarterly UDR's conference call. Welcome financial to results

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

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

Tom Toomey

available Presenting Alcock, Q&A call. and of conference will Senior who Thank with are Fisher, UDR’s portion President Van our Andrew you, Matt the results. to Trent. Officer, Vice the on be Cozad, Cantor Lacy; Mike Operations, officers, the call of call. and welcome discuss quarter also XXXX Ens, third today Senior Chief will during Joe Harry Chris And me Financial

guidance occupancy range, And by our The multifamily and high raise the assistance residents benefits I've remains are decisions. initiatives quarter driven successfully results the was we my for the samestore as rental and FFOA to fourth strong accretive FFOA, in and elevated, rate provided continue guidance capital during platform is fundamentals. Currently widespread Our industry. strong the as end we allocation many growth in time need. But raised in seen full year, the from XXXX. for source realizing we tenure third of achieved XX-year previously multifamily

of Both public move drivers. to and we value differentiate operating our and to which capital focuses structure. and rent repeatable proximity strong a desired on have of and accretively billion nearly and into looking broadens to our public cost in XXXX, continue ahead allocation widens These And cost capital of our commentary. will an already we a inviolable billion peers that us initiatives rationalized hard acquisition As us revenue second, should wide operating opportunities. and bottom creatively versus $XXX additional will allocation first advantages details the staff on-site favorable communities market sourced acumen for door versus sourcing pressures are high-quality numerous outperforming initial through to that equity rest of provide selection are expansion. operating will $X.X to work, successfully margin unique by drive cap expectations value XXXX, acquire approximately XX% Through capital controllable of attractive and private we of anticipate rates our our expanding in platform, our X.X allocate the and as yield markets initiatives since we due our $X.X The and position at and growth, but satisfaction private property and inflationary NextGen creating ability XXXX platform suite to reduced allocation best-in-class drivers continue new range market Platform These benefits his multifamily associate's Mike our we nearly include acquisitions have creation in capital peers. further at line the across of and self-service, growth year-to-date, benefit resident million margin. deal enhanced markets. our put operating sales mount. an next implementation

strong business continues While our trends. restrictions the restrictions move recapture to we've income as ever through in to resulting we expect favor our limit conditions trend as from emergency capture current experienced, we regulatory slowly XXXX. are economic ability as benefits of to continue regulatory sorted fully and the our Still environment deferred demand to

introduced towards published on, targets UDR's this provided annual as energy greenhouse third Moving it our the as for the ESG reduction culture, gas associates ESG goals, and enhanced emissions earlier we and COVID-XX residents highlighted well In the its progress our month, use during summarized company's pandemic. support report. we and

remains global for driven in teams actions in being and score UDR one ESG sustainability companies is progress In of number Our resulted XX. listed GRESB success continue the the we first amongst UDR I ESG named XX% included factors, our leader companies GRESB recently survey the biannual performer high survey, in a worldwide enablement scores our XXXX by residential to which a engagement with their our culture. of the for that innovative key recognition X.X. as at of associated make. platform ongoing publicly closing, XX%. conducted thank norm engagement implementation was one adaptive takeaways from performing above UDR of in well but UDR's and for validated participated and many a the Primary following the are was This associates insight

of the of sense felt culture. strong XX% Second, a respondents

those who recognized over the and as practices, diverse improve ESG an enhance our well succeed can status With our to as business the I feedback Third, that, being leader. as backgrounds to nearly XX% industry continue we UDR. our which turn honest Mike. Thank as to feel at open country you across will with shared associates call

Mike Lacy

resident approximately points accelerated Platform quarter. open and to other drive quarter. by which and ago Gen by with end our persisted the These Next of year-over-year, to high advantages or for third turnover coupled XX%, to to sequentially included our concessions positive be far guidance, expect as growth levels rate XXX third per quarter X.X%, NOI XX% platform, revenue normal. And supported To high have all housing more to fourth pre-COVID turnover our fourth reduced perspective X,XXX pricing our growth X.X%, continue Tom. And rate, basis later higher implied multi-family than Strong as points average additional year to than trends accelerating effective annualized X.X% late-October quarter ago; declined our three we above guidance basis results thus with of the would demand rate samestore Year-over-year a year the quarter and time the X.X% a X,XXX components provided in two below the months and quarter by versus as at samestore mid- strong average income of traffic driven we that occupancy, the grew begin well. typical in than occupancy the Thanks samestore operating historical in significantly revenue growth and versus seasonality points third second power. our samestore X.X% of third weighted be of basis growth postponing which during led XXX points Key demand. strong, basis of previously was sequential share funnel range. Sequential the growth XX.X%, by FFOA blended lease quarter. improved revenue

has elevated robust occupancy continue historically what slow to Regarding key demand averaged time. into period as and XX.X% a operating well for metrics is October, seasonally we remains of see

design. quarter slightly has high, all-time Our as third compared occupancy been reading sequential lower by to our

drive rate to continued our rent growth we've As rule. XXXX to strengthen

highest in XXXX. loss Our our average in lease XXX decade for X.X% in the average and over higher basis teens. to earn is and line XXXX in the earn our between weighted points past our anticipated Currently, low earn XXXX is with in approximately is than

income roughly blended markets attributes We are and which XXXX. achieved growth growth. rent to upside rate from have believe our form Roughly utilizing runway comes we points initiatives restriction this renewal fourth or our UDR XX.X% that some quarter revenue XX% has drive throughout of third but regulatory rate an unique basis as embedded we additional We to XXX capture presently on led various rate have the above such rental increases, to into other in of growth extended what are by we October higher, in quarter. NOI lease capturing of driving

at Next, virtually have concessions handful of Francisco the used and XXth communities Washington in a and UDR Bay in evaporated the San submarkets Street in select DC. are LA only being and Corridor downtown Area,

is translates into Our rents the playing better out rent, at full and maintaining strategy higher retention during to which pricing already Residents pandemic paying power as expected. accustomed and are renewal. upfront of offering concessions gross

to the fourth quarter, levels on in will leases. new concession reminder X.X COVID a anniversary As peak X weeks of we

translates during market fourth are in we poised expected to As nominal growth mid-to-high into our with such is above realize capture across today, strength the Last which that October. X% to X% only lease new concessions portfolio and rate continued broad growth based to we've rent teens quarter. growth,

Sunbelt which rent than growth. market Our year-over-year XX% XX% comprise been generating NOI commute of approximately have better

lease in quarters. of will urban above to reported expiration ever XX off San time couple our But pre-COVID harder-hit our group centers our the While markets our up rents join to Bay The Francisco [indiscernible] schedule. for trends of next sole due been Area, markets have sharply this results take should now XX It bottom. these show levels. in the

assistance rental the continue on Year-to-date of XX a benefit bad as than coming during million programs reserve. And debt quarter. quarter, our the mover residents have for assistance with accessing cumulative to reverse million sourced in more third XX nearly of Moving success during this in third we need in collections. X million our first we

applications $XX We in of have million process. another

whose also recently finding New previously state from funds. process to such resident access California Due application unpaid or assistant over totaling to to during participating rental were in outreach have introduced. residents programs former early success funds apply of X.X Washington give fourth the and residents while in million California are one former new programs, the our and Additionally, we former more as Washington hope the York order, balances the in off. We balances securing written are

communities basis fully by providing growth exhibited average is our pressures. have a headcount average our XX% thereby inflationary company expect of pure and the and basis the operating another we the self-service generate same on in wrote produce. numbers level We our driven overall through last rate points guided the expense reduced our unique XX% have tours. usage an points controllable legacy in Version implemented prefer growth over operating strong million all rate peer second a of XXX at three generation communities with best three margin a has NOI industry at group share XXXX. in of would $XX believe than average, been X.X markets. perspective products our and below with permanently resident revenue has to services score Realized million next incremental above versus XX% as XXXX, we model this markets past a our elevated in we peers controllable by the over formats, among quarter satisfaction hedge of XX% which store and the our the platform have against increase rate average the self roughly Next, on what resident years Generated win our residents Since prove expected more Delivered $X the across for the out. years, XX% our XXX out we

by we yield XXXX acquisitions growth unique at acquire addition, initiatives. the points, weighted party and through In have X.X outsize expanded we XX from billion Thus on communities owner. compared the ability but Harry we by prior platform can basis billion roughly the our has where we average have by third been between X% drive controllable capabilities. creation X not and of Platform game our far, value unit expenses per XXXX other acquisitions party we demonstrated average consistently to nearly on points. XXXX, value Reduced by transaction operating by I we have and create operating by implementing and expanded we our our grown In to margin basis XX% team completed third view, XX% of platform revenue our acquisitions for NOI controllable are a finding done. to and changer, XXX our X.X credit the

explore various a the that continues drive and analytics should our data advanced profitable Our better rationalizing innovation on rely initiatives vacant, retaining These days satisfaction. leaders to come. cost to margin of include further comprised implement our growth more price and is reduced residents, and expansion revenue new elevated of which team initiatives variety years in UDR increasing structure, and engine resident identifying optimizing

we specifics, you as Platform. to creating value of updating our the look these on give roll we initiatives. these While We could benefits too early believe to out progress economic initiatives potentially forward dwarf X.X.

Looking out and thank XXXX and way for close ahead, unwavering we to I we improving expected XXXX. business. changing than want to to are move a do excited to stronger commitment colleagues on their the my

Our evolve and next I'm our excited to as call the succeed. I'll turn And continue steps now culture for and rewards innovation, to we Joe. over

Joe Fisher

cover I a for improved summary results a outlook Thank today and transactions include third year you, balance and Mike. topics our XXXX, quarter sheet will of activity, and capital markets and The full liquidity update. recent our

by FFO accretive per the was and guidance range achieve of $X.XX high revenue quarter adjusted and transactions. same our of growth Our previously share is third supported end provided strong store

midpoint The store combined $X.XX continued activity ranges. or $X.XX to with the or is expense. benefit by penny fourth positive penny prior XXXX increase to X driven same from a quarter, the per the half $X activities. guidance. sequential accretive for with penny guidance improvement from representing point increase our per capital expectation X% a penny our store offset We year-to-date X growth, at is from is same share share from driven $.XX. this a For FFOA This guidance our now transaction growth, to midpoint increase whole the by XX same store and per momentum from year X% of range sequential anticipate $X.XX G&A benefit accretion increased half a FFOA by results, supported and When NOI and midpoint allocation full our positive NOI recent increases FFOA year

the and For same-store difference concessions This with primarily negative now XXXX X.X% granted with year growth guidance amortizing were negative revenue that a basis. X.X% full we in XXXX are concessions of to line basis, to to on impact is positive concessions a X.X% forecasting X.X% due of cash on XXXX. during residual straight

of guidance attachments XX our including on and Additional sources are available details, XXD and uses expectations supplement.

Next, update. transactions a

acquisition XXXX approximately to gross pace activity total is billion. on Our $X.X

these communities from During end, and embedded optionality our seven for for $XXX to portfolio, quarter recently were completed the the have and quarter acquisitions our subsequent acquired illustrating million. accretive DCP Two million one community of we $XXX we with investments. sold sourced

predictive Nearly of of XXXX One acquisitions sources DCP all capital proximate of demonstrating markets partially ability sources. creative attractively framework of our desirable. issuance matched that of as have in these UDR a acquisitions OP priced funded the to are identified through capital. was Units, funded communities; been utilize Most variety located to our been analytics are other all have with

growth. Mike can As drivers, yield at refer which release for outsized as details creation expansion yields recent future year we as our enhance yesterday's one multiple value additional discussed, through Please on well to communities transactions. generate these

sheet capable balance capital and fully grade investment our on our remains Moving of needs. liquid funding

proceeds, common a million to equitize stock to of which quarter, Some transactions. agreements highlights $XXX include shares of sales announced used forward equity the for completed during approximately first million under we combined XX.X settled previously be

sale into million on investments using a shares million the expected for expect these we approximately close and stock for of of We quarters. opportunities combined in to we coming During common subsequent proceeds. entered site to creative $XXX which quarter agreements future anticipate forward a and DCP acquisitions, end funds land X

commercial After XXXX. less credit value Second, enterprise program. we debt paper or and to scheduled of facilities mature have excluding million $XXX X.X% only our on through than of consolidated amounts our

from the liquidity our rate group at Our sector multifamily resulted proactive our X.X%. expanded in interest the paper has Last its commercial $X.X XXXX $X.X we million approach balance credit capacity $XXX maturity million. extended weighted best average to billion $XXX from to the increased January and lowest billion during peer managing facility and to in sheet outlook the quarter to three-year the our capacity amongst

and the XXXX We also capital loan maturities our XXXX of extended facility million and term January to $XXX million January $XX respectively. working

by interest X of reduced term-loan rate facility the and spread each For our working we capital facility basis points. credit

facility XXth our cash financial totaled value, including billion sale of and the enterprise ventures joint capacity proceeds equity forward inclusive agreements. and as of liquidity net XX% our is measured from credit settlement future As on of September our the and our by leverage expected $X.X

shape. our Taken balance excellent together sheet remains in

Our is position strong. liquidity

and will And capital variety allocation that, it options of remain up for sources to With continue forward Our uses a open create value. utilize we to Operator? balanced. I Q&A.

Operator

Thank you. [Operator you. Thank Instructions]

Our first with question comes proceed your from Nick Joseph with Citigroup. question. Please

Nick Joseph

normalization we some loss. Thanks. I to debt? Appreciate walk other could least comps, the through as and hoping building of of you can other capturing blocks the the commentary current XXXX. you and income earning year for next in At of discussed terms was occupancy look bad the

Mike Lacy

Hey I'll Sure. is highest earning you end higher. we've over little actively bit and we to as that at last crack seen the This is did this for roll our it Mike. talk of even working perspective we take the And know, a everybody. first one yes, call one Nick, been and again, I'll rent this on experienced put years; we've about a XX driving the X.X% year. as it just

as So has can last and we those we're month rents. that to closer XX.X% XX.X% to with down a had driving occupancy see, lot just of around do you today

call see the going same, the And bit little growth of if be so, December. not little move same. forward we And into then a as next rent should expect we we a do that it as better about as November the go we into year, and expect you bit

as then are the far We're take back like spaces things driving growth other program. short-term our place rent a competent. it they double-digit we're the seeing it amenity side, initiatives. And as well as goes, to on rental off. where rent when into And So to really parking, been as our very starting even feel we've as comes furnished income

factor of a thing driving with we continue And talking that's our and platform. on just to expect another move we high we but on XXXX. control, pretty we to to then something that's I focus just, be know we're you idea continue other So give into as as cost earnin, an mind our income

and in today. So I've very strong career all played have XXXX like would NOI XX-year to to up as be I'd factors that the go looks the based different say I is on seen shaping as potential we highest it – far that my even

Nick Joseph

How I pushed out we the months. the it's Thanks. next That's expectations in you today. October towards just seasonality to you mentioned the think terms and as very demand? that end helpful. then of are of few the And few kick you maybe mentioned a seeing starts been now What in? normal seasonality are are months expectations where over

Mike Lacy

a see little starting different our And seasonality really can pretty occupancy going Sure. more we in but we're like forward, spot to it back sustain a of factors driving call last that We're we couple place. weeks, should bit good play again, as a in other, again, happened just the today. that. at go our to rent the rolls and good be it's And of XX% feel in we very

we slightly, down coming a to due lot our today. on it's that's of So our while that think traffic, rents push own

we So like to through and occupants both coming going again, we'll traffic rents of plenty hope have we door continue and you optimize the forward.

Operator

you. Thank

your Rich proceed Hightower ISI. question next with is question. from with Our Please Evercore

Rich Hightower

that of help Hey, occupancy where maybe become obviously or rent maybe drill at paying point, producing revenue magnitude seeks than hopefully maximize want later. the you've occupancy us question rent that maybe as move-outs good got strategy guys. have second stopped of potential expense got the down right a morning then the some trade-offs revenue those I just people to now. some paid at a and sooner you've on haven't just rent And to understand the

us parts revenues help as So some next that year? of maybe understand the and into for translates moving just

Mike Lacy

Rich, Sure. will start. I

we've first only that our I degree point thing pleased think surprised to some the been to turnover. very with, I'd and something not but is

and get to move very similar. call as to well outs the can we've around look we it aggressive have both a That thousand XXX our during So starting tell a little to the probably I We quarter, rents. allows that less us you, increases it fact comes basis. is October market think last bit move renewal as outs a more year-over-year on when our had

numbers like on can some our get as push coming been even as long occupancy's we buck pretty degree, all So to we feel to our trend we able in to down though think we again rents. that that favor, aggressive fronts. do continue as And we've turnover

all So some kind tell range that markets, in little compressing you to XX.X% XX.X% across they're different others, but than the I'll anywhere from board. a right now, of

Tom Toomey

clean going up. Rich, to then be first this Joe and Toomey me will is

million quarter think dollars due we of more rent our the as economy first I window occupancy opportunity of to net And are we trade occupancy and right. the that and the period, traffic. also Normally slash January unique is this a just in absolutely yes, up, And move to year, but XX You couple us. a is that's it's as be trying how pricing into would rents opposite for this as business, hold we net power level the seasonal and bits new this during strong platform to partly dropping and benefit ability next pattern. time. that for traffic to to benefit might on pricing drive well this of type The come high renewal,

have lot at occupancy drive cost. minimal gain traffic a lot more more We future a confidence to that to the back in

Joe Fisher

Rich. Hey,

Lastly, non-paying the just, to question you and a comment your residents within there. potential related had vacancy, potential

today put really a don't we because to We've is context government working it lot sit working success in assistance with them issue. this wanted on point, a programs, it at see had the our where current. trying being we of get to residents, Just material

only if the portfolio we we XXX and today, process. are work long-term have not applying been non-payers throughout they time, could that government and for So through them point we're residents at to this down in eviction would the assistance

XX% than And less occupancy. that's so our of overall

$XX in, the in government and $X million that the able So million over former time process million assistance all dollars relatively get residents. been to the is with in $XX compared immaterial to that especially we've amount application that

front bad and terms collections. that So more on reserve lot momentum a the that of reducing AR, debt increasing in the

Rich Hightower

that color chart. up we're metric going because college there some great clean for much grads, tougher demand that the you maybe the right your mean, and one. against as of we multiple off That's about demand it something maybe basement. on return demand. question as unique betting mentioned comps XXXX, sort is I But in portfolio? of just on that's that in I now exist I think guys replicated it's not the And just guess cohorts with office, mean, dad's Okay. is of guys, now up to a in right every anomalies XXXX arguable and broader about pretty people to prepared Joe decoupling in from far mom underlying that be mean, comments thanks, as I is XXXX

Joe Fisher

additional Yes. most case ratios I income maybe that look moved. the you at for pre-COVID, is forward with not When off to starting relative Rich, its power. our Joe. there would supports that unique to kind pricing out have of rent the number they

So wages go our throughout we've seen X%. up approximately by portfolio

are X% versus COVID. rents pre Our roughly by market up

off renter the they our were communities So sitting is today than pre-COVID. no worse than multifamily

tailwinds, formation. mentioned couple a council of on demographic on the very clearly side you that the strong Now

living at home. to year. in the the lot you a a rents are When get the is the different than driver incomes When income, go situations ability income been our did and have side, We seeing the last over always cash see we sheets, biggest to of still decoupling you markets and better individuals, in We place piece, up. and at much four immigration of look much balance individuals and sheet policy we better balance positions. increase today roommate

have is I very So you family extremely last is family, with ownership look about to COVID. huge pay to doing over then we rentership our but it's piece gotten a the well pre XX% relative And the And cheaper But much two at single rental and single all better. when been affordability to think good about affordability relative actually business, where too. driver feel relative years.

coming for obviously as And helps keep individuals closed so keeping which door. is renters better the proposition door value back much the us the front as well today, in

very lease low-teens net demand next when already, the over to the and Mike can that's good that have months about that feel already XX that we net earnin lost going So to and we environment build-off mentioned forward start of of.

Tom Toomey

add. most is inflation This seen Toomey. in broad I a it's making price thing level. business one just view it's cycle couple Unique think of most not businesses. inflation, been America this a all this in significant the but But are causing decades all, has And – we based throughout that something would asset I to my seen, Rich, haven't dramatically. difference, and in importantly probably to wages in increase

Operator

you. Thank

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

Rich Hill

drill more think of remarks understand absolute in included Hey, like help look number dollars I get clean was what assistance. trying in – what And revenue if what I'm appreciate same like was good what bit little hoping to and guide us morning XQ? about the prepared could the a and XXXX? anything's included about you down we might guys. I some of year, the rental in disclosure that store as at ultimately sort in the full for look is maybe is a

Joe Fisher

Yes. Rich, is this Joe.

So a half behalf as on the that, came to try more residents, our being in stats we collected to million that of of on couple that give of through you XQ. referred $XX approximately

been XQ. then you the and would've perhaps that so, of $X in days, over million or the last So rest another had XX

the reserve in Clearly down down, collections our seeing quarter the are the AR come a of terms numbers. come stats quarter embedded of those little in come terms of kind it's in what's So those and bit, after seeing in up. been beneficial

a press into to you look the as where and we we've Yes, ability collected get XQ, so get for number clean days after. the to continuance trajectory as that XX XQ. go able release for the holds think been in XX% proven footnotes. We of to expect or we've when quarters, our In terms XXX do about past seen a out we XX% to to of

So X% in X% the that at we're that XQ, straight guidance in revenue implied about factors revenue line collection revenue percentage. probably cash looking

Rich Hill

Joe. helpful, very That's That's for. was I exactly looking what

– on more second. was if that A where right Is are that now? spreads you mid note so renewals Just reason for in even can't there the there, any you it why new question new that are for to trend a – leases leasing than leases you new closer can't push are a those leases, mid-to-high if teens time?

Joe Fisher

do our have Rich, XX% than part in anything there of great with can't to kept, zero cases. it call NOI with of just has about we it a we X% and out regulatory go so higher that still most and so to question, That's is the environment,

that has could show that that go renewal were December high. something guessed so you start rents way to looking up. go call move do as that days to increases we're it about then in tell market double-digit with I said, we into those never that to pricing have and see is That advance going we you being And they XX the do So our quickly would it. just starting November, to we're that

compression going it more good in between we're of pretty and forward new like capture renewals. feel of we place more So and to actually a see a

Operator

you. Thank

from Brad question. comes question Please your Capital with next proceed Markets. with RBC Heffern Our

Brad Heffern

do imagine you like I XXXX, see just market would market whereas lease in have where average you where Joe, to I for in lot hasn't are degraded behaving XX% growth. to regional of maybe time? that maybe have increase that you that a conversation. changed, have rental Tampa would everyone, Hey a the follow-on differences how a guess, the like has over rent income there I Yes. to but there income imagine new

Joe Fisher

of the rent markets, Tampa – the grow. that back as outliers some to you've us. since seen, one has take that phenomenal have perspective, strategy been to and income of for the can a Mike some been within but identified XXXX specific, we our And Yes. looking from we absolutely portfolio that's in then would market

in of portfolio thereby of that couple NOI. grown percentage we've think I points basis hundred terms of

supply actually today on the Just And the quant as the development continues market looks supply where years. several well the one of as Similarly Sunbelt Tampa to side, markets acquisitions well we through is for the us last think screen actually better. side. few on in that

going we pipeline XX% expectations. activity, permit and As XX% and past given to current

found about to side. can a through on little rent still Mike, Tampa, you good but So income go the very bit

Mike Lacy

feels that would I actually today you Yes. pretty Tampa good. tell

XX% compares within some it range. the XXXX, slightly and in of still we're do a seeing it to to is that growth that that with market. And As elevated maybe lot of has to that wage XX%

last over actually we're wage call to three, XX just months, growth. So about the trailing X% trailing seeing in X%

seeing we're So that's all rents. in increases the helping to offset

Brad Heffern

if And one? Thanks. Sunbelt just more seeing Can coastal. leasing are it. in any Got terms broadly differences you talk on either there the you're trends Okay. about in of versus then notable

Joe Fisher

Sure. Yes.

little there. a you color give me Let

us to coastal it for As during I'll coastal see it's first, XX.X% XX% growth about about about you occupancy tell of X.X%. exposure just and relates versus we did our perspective Sunbelt, put And in to the NOI. of quarter, blended

running our we’re NOI, XX% blended that’s was obviously about As our growth right to the to it of and XX% XX.X% closer occupancy XX%. to around compares Sunbelt

you Bs you versus So Sunbelt. at I we across suburban, As even did the But compression tell and seeing the board. growth we look when more urban would see are in versus that

to with blends is what it occupancy one XX% versus we're today. just to had X.X%. XX.X during in experiencing another to note growth our and about And context to of NOI. And closer think our we again, X.X%. portfolio, urban suburban blended XX.X that compares were the which suburban quarter, is I of around And occupancy about put urban exposure ran of

So, compression definitely a seeing board. the we're across

Tom Toomey

we're still we budgeting you that Mike point this a convicted think can pretty it through will his bread be ops year this enough of year, the processes far into as here. XX XXXX, along the that statement obviously years managing earlier preliminary look give going at we're best even next I in

growth we number a very year, similar at on I So, all [indiscernible] would a when next a revenue about relatively east-west, year-over-year to look bunched basis. good think be Sunbelt, but still up feel we they're coastal converging

perspective for So, by next least most a don't we thematics part any from see region. year, outliers big the at

Operator

Thank you.

question Please proceed your Goldman with Our from Luthra Chandni comes next Sachs. with question.

Chandni Luthra

in Chandni you mean, you business? impacting your environment, placed headwinds economy, we DCP question inflation as the your of, impacting acquisitions? this around terms the channels for this for about understanding, is question. headwinds just first not or think Luthra. think you that this inflation, Thank is would my just that all here, think supply how for broad repercussions chain but chain you talked I supply also the about taking My be say Hi, do you but broader are across of use underwriting are environment program how do in inflationary

Joe Fisher

Chandni Hey Joe. its

really maybe of about we're space of kind So into so then as side then the as to hedge, one talked development dive line. side how we drive in should as we XX-month on see can the an a we're are thinking Mike earlier, But see being to do. pipeline. current in multifamily as through is we I inflation future the benefits trying come good the come in well, wage start top little expense to off inflation expense Dan the through, that related what we inflation to too, be Harry position development that continue I'll and broader and a think of mentioned of And terms leases of forward bit kind

in initiatives drive time, top Platform additional this a income, they're line on have X.X well additional beyond both expenses. that's plus constraint XX [indiscernible] rents, at as bottom point as We line and focused

and have in of so as controllable to we And of ahead expanding and margin. terms that continue to done differentiate that are past trying expenses we the in get

mentioned From assets Tom nominal own. expectations we value perspective, are appreciation you place, rate that in wallet believe a forward On by both for that balance in given of, a the the extent side, earlier very and to sheet real terms the the driven asset growth. good capital the

some expect debt some liability point floating. we the next years we proactive the due end minimal have years for three pressure would coming management the don't three at had You but have last really the on long potentially and any we've for that in time, given

perspective. see pressure don't we any So financing really on the business from the

the development turn of through and Lastly, there take little on just I’ll terms the a he to supply channel. what the you we're Harry on it pipeline, seeing in side bit can

Harry Alcock

Sure.

that development those construction, So, about think the we projects just with existing contractors. are our contracts under pipeline, have fixed that if with start price you general

there. issue So there is price no

If think cost in inflationary terms with about numbers price from fixed should on environment it, the you benefit of we rents existing pipeline. development

up market. all we probably volatility lot a significantly. XX%, And in look As are XX% to PVC, are costs up of are hard on products, and lumber, there's forward XX% the up copper, gypsum average materials

projects markets. X% So, of pricing risk the hard pricing context to new most That's base lock pricing. But up in as of The that subcontractor material also up they X% these provide to increased. the cost down XX%. can we're rents are is until just are in all-in costs

So a that $XXX price that increase type to neutralize rent will $XXX increase.

think we optimistic I'm forward. about going as our pipeline development viability forward, So, projects very about looking the of

Tom Toomey

think But side pipeline, of door. the too, dimension, down I acquisition townhome on they in our do existing think, I of, we another the lot next have in as Vitruvian, product that's deal attributes one a about you land. a we've on terms Dallas restarts, next more development phase pretty at talked look the thing style all with have on unique

out up taking play We Northern offline putting XX units units. Virginia have XXX and a almost densification in

the densification a purchases have one from years again, ago. there several be of a to play to adjacent product. from that's in going up Tampa, our we and going project So then And street existing right down

or So as land all legacy these well. platform have

a perspective. helps from that So yield

Chandni Luthra

for took Great. guidance you $XX year down by as And then million. follow-up your DCP the a

has talk Thank the and what DCP you're So, changed have that now you. could about how are yields seeing volume in opportunities you sort there? of the how right

Andrew Cantor

of Andrew two Cantor. new the is closed acquired Year-to-date, deals three we've This and on DCP historical deals.

market additional working meet time right underwriting standards. additional some and numerous future. on transactions competition. both announce underwrite underwritings At We our in are near seeing hope have we to We're additional this continue our several to transactions and that to now the

Tom Toomey

on Chandni, portfolio one of then $XX assets the terms of Orlando. there, it coming is the the that And in just we terms the down of announced in purchase of million out commentary down of subsequent XXB DCP transactions guidance attachment in

at was quarter So, you balance you million XXB, if roughly $XX on see end. look that can outstanding

pay-off it's of million. guidance that, the So by $XX brought which down our really DCP investment

really the fewer marketplace that's for it's us invest transactions seeing driver, So that we're in available to on. not the

Operator

you. Thank

Baird. Our Sweitzer question your is from next Please proceed Amanda question. with with

Amanda Sweitzer

as maybe you DCP. today? Thanks. you Could about to talk expect do follow-up greater redemptions the developers events pool satchel balance and Good seek early to your Wanted liquidity within morning. on see current DCP existing

Tom Toomey

are they do I when of within starting with coming Yes, maturity, in supplemental at while specifically Amanda to say have XX% a Nashville, will of approximately on there the a one ability Broadway over We look look you do pay that to to you question. the transactions when one have that's $XX the just year maturity XXXX million, is good up off a out XXB pref return, number in year call balance January. a out,

that's think that year, and off earlier deal. market transaction the see given that likely value the of been we'll And robustness we next pay created it so, do on that

at bit to plus up earlier the We've had mentioned, get first quarter, or So a a assets. from quarter, perspective million one, minus of the from fill [indiscernible], are you the this quarter, of million the but maybe $XXX trying but to to get off some just back a really terms time ability be at economics; into on not and in $XXX these creates little second given we’re able had us And cycle that's transaction active million pipeline, three, to $XXX time the IRR to Great strong That the to demonstration that look we being given good take a lockout an in us, like be it able really to earnings earlier. fifty-fifty in yield, I those, very the grow today, else to doing for of backfill, two, as the we could we'd yield because but year. about saw Andrew to with paid They on of that buy one going of hiccup, really the out was in point as very pipeline XX a about us there, and investors. able for get it their a that business. able piece example to buy going that mentioned were liquidity. no units And at aspects in lockout. and access was a the developer that get a you them track that's in allowed that when record when this win-win from of one of to LP a

So year that we're above definitely in XX an getting one market is that yield.

can obviously the And our so do those more we the investors. better that of for

Amanda Sweitzer

positive back hardest of That's then areas. from hit migration helpful. at that And migration and the move all? Can about the sense. some metro you've or recently coming migration seeing people from you urban from are talked seen suburbs predominantly you you Are That you've makes where is quantify the that to trends seeing areas? different

Mike Lacy

I'll a Hey Amanda, our back you in we're move me seeing, outs. and this Mike, is move color what little up. both give let ins on

COVID pre areas. move more really First all, former of outs XQ XXXX in metro showed It's staying outs in general, move within their line from residents with stats.

New and you, little But XXXX I'll bit and in Francisco, is York, overall, XX% XX% of surprise. in far to and As seeing XXXX a reversal today first slight of again, came outside then That of versus around than year. Boston of A XX% move we're in, from move it about the the was examples, XX% and last a last trends is the a versus XX% year; foremost, lower relates needed last last ins versus turnover both first percent XXXX. tell of year; San move-ins XX% MSA, XQ with around of couple lack XX% year.

back we So seeing into are migrate people areas. more those again,

Operator

you. Thank

proceed John Please next Street. with your from with Our question Green is question. Pawlowski

John Pawlowski

thanks come lost I get will sense the just growth conversation, I to versus XXXX. the time. better to for so back much XXXX Hey, a wanted lease go how for

percentage massive leases percentage first will leases a market versus Joe from kind So, either what regulatory process? brought be or what issues of a of Mike year of two-step in the shock of just increase, or to a sticker from

Joe Fisher

have break the Mike mentioned you John, XX% have rent you side, freezes place. on that When regulatory down in it

there or still you capped. five NOI, percent there And about a under is right. move we you market, addition, decision, In XX% is have you to of the seven, markets to XX%. all may not someone's two as go plus plus CPI that you such which have business that's CPI that's Oregon XX% them overall California. California, where have If when within then AB-XXXX, our In of

the on the You got to may in expense, in. and the cost you factor XX% turn because that R&M to move terms of of downtime

cash a So, there's business too. or a bottomline flow decision

are So, you yes right.

to play those But Some years next We'd results couple do here of terms because a some bottom year. could year issues. as out hope over as line or of this of two. we in will much driving probably can take a

John Pawlowski

Okay. then Sorry, sending renewals growth sent digits. Could rate? give rental I doubled And rate the the you're being average you specific out believe Mike, renewal specific mentioned increases a of today out? you are just us kind

Mike Lacy

John. details would into Guidance pocket Board. I my for we're here low I now, there, big double of the is digits across pretty some what say seeing Dig think But right number.

John Pawlowski

Okay.

Mike Lacy

on high gross I obviously we it's it a And to in last concessions, aspect it's but you New effective it'll basis, call a place to this X% go when on a markets, where think year on basis, like closer by an were different be X%. York, time,

call seeing to Sunbelt, rents, So driving growth we're get capturing market a concession still to that. that people in renewals XX% back like when fundamental, And the lot is places you stay. more that XX% of as then on of a and it

John Pawlowski

you Okay, very great. much. Thank

Operator

you. Thank

with Juan Capital Markets. question Our with question. comes Sanabria your next proceed Please BMO from

Juan Sanabria

good time. the Hi, morning. for Thanks

across rate view But You talked wage play that kind rent devil's And markets is to the think you inflation the curious XXXX? you how wage rental is Tampa. in can a predicated of mean, do high see significant in in just advocate actually about digit on Just growth growth? what doing? single growth view, get I you on of

Joe Fisher

Hey, Juan, it's Joe.

figure Right when now. shake down up we the a in commentary out think revenue that well hold have as months, we What going revenue as a for here run by region, say keep back I the bottom was, going top off rent year-over-year going drives into a bit we rent on that similar that through and them that I it in terms that preliminary So did at and on think, think that out to earlier high trying because growth we're we're growth to budgets get are up those getting what's to just pretty level to underlying both guidance. now, we're and should but of we're revenue. kind our processes more lot assumptions we drive of three little into to landing growth going through and where

Juan Sanabria

been And there would restrictions in place in to just those what on the, then place? to rent have not restrictions regulatory store enough. customers, your increases had quantify revenue the way on same been Fair a is

Joe Fisher

course, Yes, to said between have the XX%. over kind million collect be of dollars is all mean, collections had other rent of we the million I hopefully the to period meaning restrictions, collections our normal related to price around to the to cases inability renewal running roughly some time we're regulatory $X We've be able it historically seems impaired recapture and that a six of that piece been and of increases. said us on $X impacts in to and of revert overall, back that income the of that delinquency, we've

has million do renewal to with the several other The increases.

Juan Sanabria

Thank you.

Operator

you. Thank

proceed to Markets. questions. from KeyBanc Please is next with your question Our Capital Austin Wurschmidt

Austin Wurschmidt

Hey, good morning thank everybody you.

your and trends coastal you to but market driven in sure certainly does think question the looking above markets an Sunbelt that'll where been view historically converge differently, about you forward be bit demand have do has that coastal growth the a weight Juan’s has as as market And between average stronger that next well? the hitting there's there, markets the Sunbelt. between dynamic changed stronger, in in has or So, far I'm little talked year increases case as still converging

Tom Toomey

high if there of on XX-year if maybe we longer you of monopoly meaning we on think change a, lose the a hubs on while in more monopoly remain there, the tech-oriented San over bit. little those they likely the at historically it Francisco rate think those, look I the think a jobs know, two had from term bit perspective, is little the with a when that to associated the four- that to York finance incomes the New convergence world, be if had that activity margin, jobs you about

maybe these of as so a the locations levels that you cities is of And offices, to remote of do offices year. think next at you also is to I do honestly four playing capital years, immaterial. But some see Sunbelt going from the when flow of scale to do Sunbelt you asset are supply environment see somewhat But be work up see you the lot a the And the spreading into really which of an go is have markets, markets. good full out little of satellite this remote anywhere for other some those value at different ten or deliveries from time, perspective. in start saw you more pulled XXXX when point bit in you look income supply these more a over to XXXX permitting early next divergence for start the that and But that whole coastal Sunbelt see likely seeing powered field XXXX the which, coastal during where those we you and markets through back and just activity kind to of back, as lot of the of part XXXX. Sunbelt a

in relative coast. the perspective so more supply XXXX a from a And of probably to headwind

Austin Wurschmidt

then Yes, one that's Thanks. color. Joe. helpful another And you, for

on have the future more do a highlighted here what on leverage focus to equitized between at fund acquisitions guys you'll think over down but equity? bit, and bringing investments the You four balanced debt you point and basis maybe you've a

Joe Fisher

We're actually a days. a little been our one we've it question, Yes, a board It's the discussing is to great several with bit internally. quite in bit going Austin. be discussing next

have the it bring we external mentioned, What trying call over last EBITDA that's of could we have to otherwise our that the efforts down of growth is earnings at point percent done times a expense two to another debt X.X seen. been growth for or equitize you year. fully us As

discussion that high debt growth. EBITDA, feel feel trajectory good feel And very end the X.X the path very, so to year And external we year terms closer end, we're we about the the that the is having to by times incremental of, laid think receiving very of good FFO now year. from by about good we've our very and six’s, NOI EBIDA low in we about next five’s out be we'll we're

side, And on so the feel that sheet there. done very given all balance good work we we've the

manner, I still up getting now. a basis closer something think, able to are a we But being neutral as to we find to go forward yes, wrestling with on in accretive continue discussion So, deploy fund into. and to right leverage for hopefully we're opportunities

Austin Wurschmidt

very Thank Great. you much.

Operator

Thank you.

next Our Please question from proceed comes SMBC. with Anderson question. your with Rich

Rich Anderson

Hey, thanks. everyone. Good morning,

on call. want on just one the isolate I commentary to So, early

that as factor is lease part that's you you think last the new growth, I And the will that year-over-year that calculate and when works rate the forever. concessions said declining fourth quarter. new teens, how things Obviously, lease is of – math settle. for burning high off becomes growth

schools, stuff near the of in You to wash people calculation. economy a from that growth and obviously kind now but back get wages will year and have rushing office a all their a strong year-over-year and be

my strong question the this to that repeatability So, fundamental again what's topic on picture. jump is of

lease forever. growth going do new say You're to not that you're high to rate going obviously teens,

the growth, of be concession digit a environment, this sort very not call the but So, figure correct. and single still not repeatable, kicking this like type out is fair to to more of stuff that's repeatable strong, element

Joe Fisher

probably in running as we to something XQ that look at year, don't A the the next of Rich, of earn degree depends be I'll high given lot we've what of half into first second cost of you're this markets, half of is to loss of this to X% it around up looking that next of year year so from as it's X.X% numbers a Yes. the in going stock. which because the really lot repeatable. say the question terms part point, year, terms really at continue that to know in doesn't because a it it look lease. much around been or down be on you're discussing kind you there? range. can't to we're to X% discussion all pretty in that are like, first to on of think say our fantastic are up and does having I it's There when your The efforts that the it could XX% X% supply, of wash be I a conviction it's lot, next support attributes that Sunbelt, going our range aspects pick our there's

for be next big So going year. supply's not to us headwind a

exists that I exists proposition relative year think there. next that and versus of affordability in terms multifamily single the still piece family value

the therefore look the you when and exist growth. openings average that that that think wage of of a substantial should job and rental above in amount is fact at I average market the rate amount driving inflation today, wages drive above

mid-teens to year second outcome that time We'll can a lot outlier. would seen the us. between, of be back tailwinds but it a remains probably bit, to us. next be revert a So the again them good It kind get an be in for phenomenal of by we of still it up be half behind would

Tom Toomey

Rich, we those in while A the the next find going office type but next the environment. businesses or bring go if full right factors sleep And the into power opening I to like a a on of able first still back at go don't contemplate February, open of quarter that, forget, second should tool first we your that now year. can't is into restrictions the to of don't year, it either regulatory pricing those see be March. entire on half I it’s the if feels to lot we year to sure slide of talking then up would And the markets. Toomey. be in couple pressure wake a are until those about of the mount to COVID and second occur, year, are other people And impacted mean, the towards and to powerful that and markets a workforce or lift of of listening commentary up. have Joe's, lot were And cities, regulatory very that up politicians to

And big that's at our and XXXX factor that. in will, so, we looking how we'll you plays might see but how out, that a for guide if

Rich Anderson

to Okay. it, which And are this have great, then multifamily wondering and second question because afford I'm can't you inequalities clientele who has but that exposing of Is that, like, probably residents if out in is high-end this like could you as all environment whereby what's is happening everyone as that of I there own, who's we And the that? that we've to you have the loser in hangover consequences the risk [indiscernible] long-term do but late. which afford, money a Francisco, you the guess country in with negative substantial avoid that win. come pretty the here you and can't San people how a say seen,

Tom Toomey

exposure see to stay have a our questions SMA. But do that people as high constructed a societal of solve. well B you a the number portfolio a and that as type we've in the So, to balance and from portfolio, leave I than paycheck markets, bigger to Rich have away how we from I’ll

construct double I reprice activity that. think anticipate down you product sensitive people we down. but yes, venture back paying benefit be we so them our is people rentable apartments rent? won't model keep as I business XX always positioned I way. think we cycles, from up got available a mean, And hard, And more make and your into of in to push and really directly, we renewals day's keeping question How do that will we'll days. simple, we'll cycles if type we that's lot about And themselves too as And we company, bacon the us of in million they'll down if as ourselves up. many so a would a our of money of and and mid-market to off that

Rich Anderson

very Thanks the think up – is well, actually. the attacks responses question I much. doubling pretty

Operator

Thank you.

your from with Securities. Please One Capital Our question is with proceed next question. Malkin Neil

Neil Malkin

good everyone. morning, Hey,

in forget you the Tom, remarks release you commentary it night, your First or if from the last I demand strength marketing NextGen this share outside from in various question initiatives. prepared was and about press capturing said talked

what regards the or You talked on of Mike kind that know, also to to maybe or things you mean I'm Joe you drive platform, level? leasing about near-term at elaborate could I hoping the the impressive traffic up maybe a initiatives you're don't funnel and doing least the with that NextGen such by at opening

Mike Lacy

Yes. Neil its Mike, good really really question, it. appreciate off, first it I'll and kick

Platform officially We out in are the foremost of terms our pleased we've across of first very markets portfolio all X.X. rolled and

definitely I innovation execution. a track us we think and record you've heard culture have talk a before; of of

but we've a little really bit improving job to those a done different business. on. at today vacant on really the focused as So Tom call. tell we as ones, that that us not you more and And at things, of Joe opportunity. the behind it heard about what's you, we're relates XX he where ways around you that XXX,XXX putting days, us will some currently talk necessary constantly have mentioned homes days vacant it, excited of looking one about the new on on days. while working And about that we're big X% think is to a XX of the vacancy XX or do And we We're rentable mentioned come. things. about million, million mentioned, have initiatives concept good looking we're if it just we're you've I And bigger

Our average about a day. daily is rent $XX

we more in there's opening us, feel faster our people you and and feel or for utilize million it's pricing faster, he last website. on funnel that to process, opportunity think We're moving we've How to our over shoppers. the How year about can strategy value think but it's on team in we there's $X it about the or it, our not time things get our whether improve it we all, going million. we the improving come front. and has in of heat demand? turn $XX more that's that the so leveraged creating to terms to of when lot do that we it On capture We So like maps there. created versus done buyers that's about whether that pricing a

traffic So things to us it efficient more continue continuing intelligence, relates on We're but that. me, being what excuse do to ultimately to house we're to And to utilize we using it are you're pricing to analytics, power. bots I'd as capability, like side see say artificial our work in innovate. cost is going starting and least seeing to data the probably of it And last open seeing not up and that funnel. in the continue

that to whether today, we a working whether or have it's guys own the we're consultants capturing so with, come. a opportunity data of lot that We today; with we're our have crunching with opportunity it's with data our of internal lot that

Tom Toomey

I couple think, give a stats.

tours So more of to community talk are you time take can helpful on how we Because average drive a many our of more does, traffic those that then basis. a much in us terms the how tour and those can about daily terms everyone's XX% of self what some of go through heard touring, in but terms day, now in stats.

Neil Malkin

the if average a day it somebody typically an some could to past will upwards people see used you about We've eight for our of of in in agents, leasing is examples Yes. the one hour. six where time tour to that takes because

or we're having property Now XX time them the go at XX same our people that and somebody all out seeing while, at XX minutes there can to average. three tour minutes about to about they of that manage for the takes and on XX it out send four typically

given see to and have people's house, here but only centralized able able not starting property to at former time. apartment we're more to of are time work also we at we're team our in any energy, the our So office efficiencies, more that the homes side maximize and where our

Tom Toomey

Toomey. is so love always on one, Think fun. piling about just much this because I Neil, this it. it's

the to They want expedition their the talking trying want you us our to that's when down a decision you the taking on that really They've don't were where get on is valuable, out and We in want go want point and can we've customer. is You the minutes. my really of one-hour room already minutes, salesman talking talking to were sell say, out convince they want my and lot just And is out to and And just make keeps them turns to what just that XX truth been we you the buy and they're it to XX just said them that to truth figured way. they they and about and doing car up things live. a actually they've buy. mind. of I to you a one-hour

for do benefit transact and is that's apartment And now that says the but our people know bigger with And at an on to business easier the push towards don't it on traffic, us. does same XX We today. more what I we trying the business easier so planet dialogue this this making any resident customer, open about create can to that for you making do to thing, the right make customer the is funnel looked it with that us. becomes not

driven but will decision. just decision, no solve next much we're next if be a the engines. this a You our sale occupancy, not are of you ones price looking this buy on going need to to buy it forecasting, will the and first And date data The they're for at of generation off or pricing pricing we're that's engines one. power at. more what a And build

we of the control have data. Now,

list hell big XX past, done team generate actually one example, innovation them, work different ideas. another has lot the like we've concept all majority? but We Will work can No. of in the and the the in that's of small I a projects days of have kind ideas it Will that vacant of a out a enough the just not vast we time? Certainly. set different it I'm And broad scheme. facts a pricing expecting think and and

my topic. I really love Sorry to the on get soapbox, but

Neil Malkin

appreciate it. I No.

appreciates the how how best – I pack. think far and in everyone the are class the ahead you on guys of call

Other are but moratorium, end who's or me the mean, see coastal I that, the of that. guys sitting about believe year. by the Do is one the imagine for let to or sitting. just uncertainty I – something you Van kudos the the renewal how increase, extended Ens So thinking the talk about the you and and get or York the through Mayor restrictions the extended evictions handling I Seattle similar? Mr. just quiet New for Can the of through eviction markets year. end regulatory there you

now. I think California, open I think fairly

playing if you're swallows worried these whole tell or I'm idea this you out if how things me, some departments around about can near-term kind you're of in how about strategy you just And you you impacting and So maybe those guys large vaccine fire talk can and then police cities? of mandates is think about of what see potentially maybe policy that? lucky of the and

Chris Van Ens

little of a coastal a restrictions facing limitations, X.X for as been, we increased lot We've to so impact these these COVID years rent, renewal it continue exactly last there. have moratoriums, Listen, of to the in Neil, been bit Sure. right. handle variety other markets. eviction we

really philosophy. it hasn't So operating changed our

is a these of in you're where think markets. now I some seeing moratorium just bridge difference

participated in rental basis. on next over we've assistance. But do at complex So look restrictions et to three a cetera still been programs as example as through two environment for obviously have for State the regulatory California, day-to-day what sure for or we're when the months that the of was original we of you and working it plenty Washington,

when have that's happening out just David what's dedicated a us of done that here. Mike Kudos We to with have strategy know as team operating the Camille all there, can of so to. know, you a fantastic keeping and job needs adjust he in

that mandates to other a that's we're as face of far any Boston moratoriums Joe it's now, get certain we're happens as to stuff, under this but we'll of to going it's mean, Seattle York, property been to continue on into next regulatory see bleed As already to politics say, what's the see, going going to going them. its would've in midyear know we we you then I some stuff. just happen we a to of thought continue I at proper, to and restrictions And are and Right I little monitoring mean, year. on thoughts face, mentioned XX% as these be if to the things but still geez we'll through all don't mean, eviction that want some into to like of said, DC year, New have as that forward, going New we don't police just then work going there. we'll most Jersey extent I has Tom extended, anything and AMI, would've in vaccine difficult of far those bit least the are. Whether just kind – forces what and so that, into we'll guess like just I get it you to whether have that

Operator

you. Thank

next is from Our with America. Bank of question. Please question proceed with Dennerlein Joshua your

Joshua Dennerlein

feels operating of to well. maybe senses the Yes. that? going know take folks Hope I how on with doing send in estate municipalities going are like prices, maybe might advantage early Any real to Hey non-uncontrollable everyone's price forward; estate indication Wanted everyone. kind taxes? real on of and trend it particular those

Joe Fisher

Joe. Hey Yes. Josh, it's

on lighter in have but any markets. pressure low market bit that little with consultants together plus the end we exemption year. our little some putting looks at throughout this place. do in of a X%. overall the view budgets we're ups, Florida Yes, The of are bit exemptions might or where risks are Northeast working that X% a a numbers, more third-party of of have, lower we where Northeast a I'd a overall Austin, put see different today that burn preliminary to at our next point at some California We this Places growth have time don't asset point markets. some is to we probably those throughout little say the at and like you be the X% minus portfolio, specific

So more taxes Sunbelt, probably X% probably X% low end X% the Sunbelt X%, what have we kind pressure generally for XX% estate or based that a next bit you're off today. or real of or to end speaking we see think visibility overall high so blending X%, into I XX% the on in but year. Today, little

that we do have this into So point. some insights at

Joshua Dennerlein

rent to maybe Okay. touch your the debt That's opportunity super on comments opening program collecting mentioned? there you about of you helpful. wrote expense, wanted And driving base and then just maybe set success that off York as bad what's prior some what's that New so your

Joe Fisher

like add what [indiscernible] goes items terms talked I driving the a lot to but going what's in had history XX,XXX Yes. (X:XX:XX) Yes. are really spread work, to of dollar back they start innovative of, considered about up them of of that a think mindset success, the amounts, over up really units, after It's, Mike immaterial rolling and take the it that sleeves when sometimes up. in picking terms we've you

jump residents really it, work making ago And we opportunity, eight they been effort, them the go or the but with sure are them, nine what get task this so our on in the months also with understand residents, to former after resources force and sure and making to then both It was own getting a a assistance, a as constant now willingness both constant try with available to current has dialogue had what to we well the sure pretty the available had communicate probably to resources putting as place make this through good from time. them government residents. and

it back the on So comes the terms to of collection get the I allowed I That's on there think to putting market what to start, side. the ahead just out being think rest resources in it. of us

former opportunity, two that roughly that's covered balance and the that California those to are Washington received ones have really today million markets out two up big of have I AR of from the overall been we've, XX resident related or Today running. X and we think that so or an In period. the terms application are million

lower I ground really York and New believe yet, hasn't dollar amount. it the a off has got

that program. to think I million they $XXX allocated

associated opportunity honestly of an AR there balance bit less little less and of that with market. an So

some of and reallocate time over some markets capacity programs from to hopefully and resident program hopefully excess it former the these resident help as we current continued there the to them momentum So utilize see see some of we of their other well.

Operator

Thank you.

St. next question Haendel Our comes from

proceed question. with your Please Mizuho. with Juste

Haendel St. Juste

Hey there, quick ones thank from couple of you. me. A

bit the side, your where in on the obviously guys stepping volume there, your you million. acquisition up you $XXX First half been more of have activity a mid-Atlantic the it like little for notably half looks sourced than

underwriting, say any asset So I curious there I MetLife. and the level on is the opportunity rates, with, there, broadly set think Thanks. a did more guys the you your on I assets years It's guess since that XXXX your interest question IRS, XXXX, then opportunity a think conversations? left the there; or swap, I'm few curious in the of on cap been first

Joe Fisher

of Haendel terms process. conviction say Joe. have level market Hey, kind broader the three our a selection. its tiers in Maybe high I'd of at we start of within

door. terms have fit thirdly, next We in conviction operating degree assets high conviction in the terms well selection of to that ability our performance deal high in our terms of to with conviction of degree ability of through to strategy market portfolio really identify our the platform. transaction our process, of team's And

started are assets you by the in markets orientation. time level we we and that third our we a a acquiring, throughout maybe when been look high would so had of we've yes, a And that given say

And so the on typically and year. you're the work Dallas Philly DC, all we've the done Tampa buys here those that markets terms that in represent seeing of this Baltimore,

approach Typically year-one we've and so, type a of in program it kind the overriding you platform and efficiencies wheels terms the into the identify, can of blocking the of next And of trying lot you So of that core and it getting find level, then but in you operational headcount? a to deal scalability FFO unlevered range. in some a cases, then That's door, where in yields and really how greater upside. tackling and been have putting really the initiatives, started can you yield. we mid-Xs The layer that capital it's it's a reference. in IRS greater the

up and cost-to-capital, prior that's been fee, CapEx to with management typically and to a to low-Xs high-Xs. so prior that's So mid-Xs married

that where additional margin. accretion always from, two expanding initial these years and comes and keep in some upside then have the three of So that's assets and

urban, just about no there We a you truck. couple be fantastic win-win years did continue back momentums and asked presentation, portfolio; updates partner the a us. portfolio attachment more But We the little in for you Lastly, ago you really a to off that portfolio the them. met; had that see executed shrink with to bit a when more momentum on the in starting bit in look so XXa. A+ there come see good

Haendel St. Juste

and appreciate the there. color Notable Yes.

you helpful discuss year. especially stats feeling there? up Sunbelt over on in mentioned those being How You provided versus rates you're the I brand XX a suburban. lease rents, rent-to-income we've Sunbelt, coastal to of bunch think guys up you the push seen, ability XX% guys Your given, levels versus of Can urban I pricing some past regions? think

income, relative the some color on just rent and maybe pricing So power thoughts Thanks. region? amongst on

Mike Lacy

Sure. its the I across will tell Mike. for Haendel the most pretty you part, board. it's consistent

we that Baltimore, like And places even ratio. watch. still Philadelphia couple We Monterey us, that other stat, has us even well threshold then and average that and are outliers. little and for that sub-XXs. Portland one still you the for They're of higher runs have XX% about XX%, always – so Austin, below XX%, a bit rent have that with it's been Peninsula XX% it's XX%, market markets a income that's around

over couple years. it's as So and to the around right a with of what consistent XX% last XX%, again experienced whole, that very we're we've

Haendel St. Juste

It's helpful. Thanks guys.

Tom Toomey

Thank you.

Operator

Thank you.

with your question. Our next question proceed Santos is Daniel please from Piper with Sandler,

Daniel Santos

and exposure. to is this My comment or questions. to all rent Hey savings And the all not implemented, on York property your thoughts potential is and was cause you effective what first that good sort if do sell effect around might could control views of taking I whether good expect your digging legislation eviction you us New on in question down specifically wondering the would is afternoon. taxes? for if any want Thanks on for on you

Joe Fisher

something legislative down the shut this of at the Yes, new us in point good year. question. that is tracking they've sessions team. in have definitely Most isn't market. It's It regulatory the for item been that to

do in to And that referring so in resident York of will specifically as discussing. they'll as that and series we will markets fire of debating other have topics be New up they back expect XXXX friendly you're some the rental-oriented

operate. looking supply we every but mash though, these Austin buy is something do and operational qualitative together climate definitely from analytics we Florida, a we to terms different hinges of at you a San we sell down ready it's on New it's picture Obviously the Francisco does of perspective, not to different have an be than at implementation that screen are no basis. well on of that a on go making factors. that reference, in lot we There's our eye the than is juggle predictive of of It work potential best and LA, big that what's or in So one that like Nashville. outcome the market how have We that we'll a factors factor. or out change and market no we on in in regulatory see them and But decisions. our factor we keeping different and look have in when when all overlay those of forward South looking It's factors key and for do that York, platform, a got a number at. figure terms

us do as we does piece creation be out to regulatory, it play Clearly a definitely this can different they to supply, forward But necessarily but to of the market value not to in continue demand get points all into at down. reasons diversified platform. drive our want such certain sell why thinking, it for going does the So it's cause whack cycle. of

us diversified is stay right clearly being path So on. the to for

Daniel Santos

and more your expecting Perfect. me I you if are a How one might be of much and there one already covered some benefit call. the for there? lockups And synchronized you're that from timing you smart sort with what And helpful. sorry, be long exiting That's been then rent? assume are it, would it's of partners. last

Joe Fisher

Yes. Good question.

got three X reference supplemental. you in look down of within on funds in quarter. through a the at we've sheet kind million Primarily the that investment the was That we the two can and So, there, refers to was almost what do the a Attachment unrealized investment separate both couple footnote items on balance in bottom through have areas. that footnote $XX mark-to-market our for through

what million. our on-balance RATVX and sheet If balance X for for investments, you approximately within our you today. about it's of that rent $XX $XX smart Within the valuation go XXA to million can is see and

percentage current price, debt investments $XX and you million. stock worth If million look at $XX to ownership probably our

so we time, it. try liquidity investment is in that how are on you yes, will in partners we million, to over million with constraints of $XX somewhere the terms left and there $XX forward so, move And obviously with our align

net-net So it. pleased with very

a $XX our smart it grand out as I here $XX $XX for all to that phenomenal all of installs is platform. bigger million as to it, slam of issues well hit two think pays coming in initial the our basically million on million of investment rent one that

taking care So investment is that of fantastic.

terms that up It's that help infrastructure huge the as think residents piece as set additional and well controlling self-guided expense given us for win-win get overall it you well of larger as in their resident drive resident the environment us, experience the standpoint, funnel. about a being platform, helped a living been being helps of an that for As us their tours the critical from obviously control able with this helped to the us. found revenue

So we've I've rent smart been with and with the partnership them. very had pleased

Operator

Thank you.

Please Alex next comes question. from question with proceed with Our Associates. & Kalmus Zelman your

Alex Kalmus

Hi, thank you very much.

Just eviction can turning have your is playing you throughout portfolio, back a been that how baseline where listed? process moratoriums to diverse the out versus describe the process

Tom Toomey

we on. so right starting or Joe would only talked move have guess debt. XX kind or So, bips move If about could I long-term non-payers numbers moved couple with there's about, of we of now of a

just once of to get to application either just is them resort us, on that and talk have or is process them reached the absolute been You have rental consistently. plan, a of people assistance. over remember into sort them really these tool They to us the to for wholly try payment out some to us entire last cetera. apply Eviction get work they really period of for won't nonresponsive really COVID. We've again et are won't to with

that a are have cetera, would don't we say an type anymore. eviction free Texas, et bit I more, moratoriums like process guess little from Florida, So, I places in

had we less However, delinquency down also there. significantly

them. more with can handcuffs de biggest So restrictions. the apply move those towards them. work coastal They are of in piece are form in on the you or markets, that or trying a really coastal lot Continuing it moratoriums you, get effective still to minimis. a kind work you numbers the fairly after if markets the of of those regulatory, have to especially move moratoriums forward comes do maybe lot for with someone to to bridge that is to you to that trying And when

we can. to source we've to at us. with the can, So the will just that everyone work through we we're for everyone about, with of want we everyone working resident help talked assistance some not we day, we as to work end But can. want resident, by We people want

Alex Kalmus

more dispose new acquire Got on out in the ended that terms translate And is that market, do today? ability playing and at Thank environment to starting of term your competitive that attractive it. long a And off assets how in think prices? to are there into you to vehicles the generally you. been just of and open has acquisition well-funded, lot capital permanent

Harry Alcock

that’s point driving down. This is rates Harry. you on Yes, a major cap touched

previous of three So, have rates, capital low; and is which is very which flows, two are been is interest the now you enormous. operating legs. think which about One projected performance sort positive;

have up. a very not so it call probably And the XXXX be billion be and going From I in to something cap that way cap sell to There it will think you've have down perspective, rates similar. type institutional gone apartments billion buy everything. XXXX will gone we’ll as $XXX in about mean, values rate $XXX and is we're response our seen yields we

the XX focus last really of year, last call properties we've this and to over assets year for across $X candidly, And bought billion, where that two, in that time. or billion. about markets on a we've $X talked types $X.X the continue over billion, We the invested $X half dozen the last development, invested We've between and on years, over a DCP. acquisitions, we've billion two

easy, brush So source to a where us gives to that that can our not deals. only And easier. fairly It raise. certainly it's few we the a it's suggesting I'm wide getting but not, continue capital we is deploy that that we that, need

Operator

call hand further like I'd Mr. over Thank back and you. questions any in the closing no CEO, Toomey, queue. to the to There Chairman are for comments.

Tom Toomey

certainly, who interest been the call Well and to UDR. thanks all your in you and of for have on time

you to creators. business can you seeing And we're you, the about for recognition leader. lastly, as they've our other engagement, as want that. evident hope in well a UDR our thoughts. I’m with I'm associate on as really the tell, take Couple we plan, built the Nareit what thank we've the the continuing focused As prospects ESG through my value both future. proud for on excited and execute been But for and pleased to of that, strategic our response the by but of of execution doing remain to for COVID, really And an I GRESB what remind very and was With very our our built, closing, feedback, and team forward which we care. high differentiated you we rate culture associates our look all at in as future.

Operator

today's conference. This concludes

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

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