UDR - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to UDR's Fourth Quarter 2024 Earnings Call. [Operator Instructions].

As a reminder, this conference call is being recorded.

It is now my pleasure to introduce your host, Vice President of Investor Relations, Trent Trujillo. Thank you, Mr. begin. may you Trujillo,

Trent Trujillo

welcome quarterly and call. results to you, financial UDR's conference Thank

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

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

I and call will now over Toomey. turn Chairman CEO, Tom the to UDR's

Tom Toomey

Investment during with the and Senior also be Fisher; to Joe Lacey. call President, portion Cantor, Trent, the today will me Conference Officer, and Officer, Q&A of the UDR's Operating welcome on are Chief you, Financial Call. Andrew Thank Fourth Quarter available and call. Presenting XXXX Officer, Mike Chief Chief Officer

UDR's for Both appointment Operating on driven Joe his been Mike as creation exceptional positively Officer; congratulate Chief to and promotion well-deserved like influenced Officer. have Mike to and I'd value have culture. leaders, and Investment Chief his Joe First,

to this from transitions as executive role. role an fill critical Joe search commenced we his CFO, have process As

is and are update We progress early you we'll as made. in process

presentation outcomes. a as outlook XXXX, we with potential earnings for we conjunction our in that on, completed highlights with release, published of Moving see drivers what our the

with see the slides and Our on remarks presentation, our align those prepared the on screen. your webcast can

the will calls our of balance format We XXXX. usual resume in for earnings

historically to back of turning advantage take quarter profile incremental market year broader year midpoints. drive estimates, levels per XXXX growth same-store guidance guidance in are: including expectations, the experienced we full XXXX the half should consensus takeaways outlook project Three, should pressures excess share of Slide be opportunities demand enhanced investments remain will of by cost from despite in growth ongoing to are Next, we X. results growth capital, fourth NOI exceeded our appropriate. in and economic results, the customer and on positioned and XXXX. of FFOA one, high from in elevated growth Two, release net advancing to Key This supply expect XXXX. and external abating continue innovation, apartment in while our experience Fourth, the resilient based XXXX. in when our

operating and XXXX various to positioned to is We cost capital, fund company heating unit sheet partnership including accretively capital fully our Fifth final, while needs our signals. ventures beyond. continue well capital existing to utilize the of joint grow and will in balance sources deals of and

call With that, the Joe. I'll to turn over

Joseph Fisher

year and cover XXXX XXXX guidance, year will drives our macro Tom. XXXX guidance. fourth the transactions, that including include building I blocks outlook today full Topics you, Thank our recent of results, quarter the and our full

X. Slide First, beginning with

FFO and full as adjusted and achieved per $X.XX quarter year guidance. our share $X.XX provided previously of fourth the of Our midpoint

of was above NOI our expectations high the with meet range. Additionally, our same-store guidance that end results growth

for each into third sequential the fourth to improvement quarter in built going year the sequentially last the point quarter, during the XXXX. occupancy similar occupancy-focused strategy quarter. month and higher fourth versus quarter, basis shifted we During a Occupancy to resulting an XX trended

slightly trend lower rate our in occupancy position as our decision portfolio strength resulted versus leasing XXXX growth this right traditional anticipated, maximize blended and As in expectations original lease place to a NOI in but we of fourth the enter season. quarter

Thus in have turned is growth which occupancy Underlying maintained above basis XX far XX% following we sequentially points average. market patterns. our fourth rent and seasonal is higher than normal XXXX, has approximately quarter positive

remains healthy has lease and mid-X% across bottomed range. lease rate largely growth rate regions in New renewal our the growth

by encouraged are these results. We

Slide X outlook. to and Turning our macro

years and utilized forecast. approaches top-down in macro XXXX we fundamental past, As our and bottom-up to set

expectations local informed and by models. was XXXX our growth, consensus wage variety rental internal markets. ownership and and their job growth bottom-up and of combined forecast they in that home estimate continued to elevated rate We top-down factors of Among mortgage are with drive a growth total a lower and positive supply decline dynamics favorable demand by a forecast the and understand supply. rent due forecast third-party for rates Our in this our GDP, X% regional factors as housing best teams economic forecasting built

XXXX estimates as reform range. and rent short, regulatory our outlook In in growth the compared slightly to driven is in supply risk. multifamily immigration while factoring forecast macro set for uncertainties conservative stable declining prominent mid-X% and when Our against by is X% such third-party demand forecasters

and for positive X. encouraged of Slide supportive key of by industry. intermediate that to apartment variety the supply near metrics are term remain We demand Turning a to fundamentals

below financial long-term remains with First, the rent-to-income top residents' health our at resilient left, average. the ratios

improvement home declining or this ], rent to accommodative expect do affordability options rate interest in prices a versus a significantly less to change. Second, favor top XX% XX% homeownership more relative to our long-term not decidedly in and environment, rate at remains absent This to at pre-COVID. roughly right, alternative the own we correction major a dynamic stable a from housing expensive [ supports

for provide rental the largest in U.S. This indicates support long-term their the cohorts years. bottom latest continued age the census Third, at renter statistics left, that remain demand. prime should

is historical the beginning multifamily highs fourth, expected rent averages. remain the now right, of XX% and And in below historical above and should levels start approximately at development XXXX, well is and late retreated while has bottom growth beyond. significantly at benefit from to activity XXXX average deliveries are This recent down

Moving X. to Slide on

providers to data deliveries be forecasting our full markets averages historical in XXXX. to of in the averages. deliveries Based of occurred the second peak and similar the in long-term XXXX are development and data, the below multifamily half in year XXXX downwards U.S. Third-party on historical middle should trend completion

deliveries supply that XXXX, move pace will the the be are throughout there Where concessions move capitalize cognizant of period will lease-up prevalent growth a ability new key and We after to forecast. a our our for that as through slippage remain year, concessions time could we driver on be to abates. of rent

markets. on while the expected approximately arrived inventory, which to of our context supply. Positively, from markets to guidance, to supply greatest XXXX average deliveries coastal tune is twice by at which The On X% XX. Slide across we compared completions, X, is supply XXXX on all similar coastal Sunbelt Supply nearly is feel our Sunbelt existing XXXX. is which forecast of on impact as new new provide down to regions the much we together, Slide as XXXX to sized this more X/X Mixing is face

midpoint, translate year of full basis share X.XX% full and to at to revenue growth is XXXX the FFOA than and points of which include $X.XX expectations guidance NOI $X.XX better expense same-store per year XX expectations that Primary growth results.

from by decrease $X.XX certain the increase decrease shows expenses. year-over-year FFOA $X.XX A management share include the at $X.XX G&A and hedges, $X.XX the preferred status a $X.XX for pending the of converted midyear $X.XX same-store in from lease-up mitigates technology Drivers from from a First, a And which disclosed. notes reflective recently equity interest inflationary our attributable building a $XX million and attributable XX% due of which sale debt located a decrease following represents the decrease communities, activities a property per of affiliated increase equity from which full debt to $X.XX company. X% Fairmount average interest XX previously a offset ] balance, XXXX and income the Philadelphia, the expenses block X nonaccrual of investment Slide increase. guidance of venture the expiration Should developed moving year lower UDR's earn preferred midpoint, [ a into to wage from a impact X,XXX joint to to growth items: same-store expense for revenue from our one-off combination to and equity decrease would we debt and be the occur, a with that of second, due transaction in investment. receivable $X.XX company and acquiring

economic long-term and for build exchanging are and that is chose equity company we We the decision. industry by expected support an to notes our leader the help is to prudent be acquired excited

received the our equity and We debt in preferred have inquiries pertaining to various book. risk

important considerations help to are provide here transparency. So

nonaccrual investment would a investment approximately X X,XXX our represent business. than was Fairmount to this nonaccrual. million, remain we of investments in believe status that or the event risk. and which share $X.XX FFOA by largest $XX watchlist, less taking of on X.X% reserve, totaling largely And book derisked have There of we our moving per

senior their However, trajectories we and mid-XXXX. until been each recent do encouraged for operating loans by have mature the not these investments, for

This sequential Moving range $X.XX approximately attributable expenses per first from seasonal decrease our pay tech higher investment to due is or is XX. to X% guidance to decrease the FFOA due Slide $X.XX to on by recent the lower investment. $X.XX to primarily and NOI, trends a balance to share driven normal and $X.XX a same-store from a And debt the preferred midpoint. $X.XX aforementioned specific quarter, an equity decrease and downs at

more excellent cash balance minimal variety all, we allocation balance Only an capital free liquidity Last, XX, and our maturity than shape. excellent refinancing position. with of our XX% on drive XXXX, of capital in capital flow, consolidated and a proceeds our accretion. continue from Combined competitive and strong matures total risk. committed in and future $X the our debt recently in sheet million remain $XXX to reducing Slide In and long-term thereby deployment, billion utilize debt sheet through remain opportunistic sits of to quarter dispositions, property liquidity. provide liquidity, we first completed We advantages our schedule of our

With that, Mike. to I the will turn over call

Michael Lacy

guidance. full outlook innovation an cover growth other the same-store trends across and XXXX for factored results the and operating building XXXX our following Joe. XXXX same-store for our I'll our How Thanks, topics. regions our initiatives, drivers update Today, growth. various expense blocks on expectations our revenue of year into

of Slide to block building XXXX embedded rate earn-in from lease The growth. XX. guidance same-store Turning revenue growth primary our our XXXX include

year a blended our about is basis which XXXX half and The occupancy in contributions of line earn-in strategy and other during the in well expectations increase fourth for position prudent range growth ago. we average earning third Starting innovation rate initiatives. average led our blended basis earn-in of earnings lease operating quarter XXXX, with that year and to resulted lower our rate points, quarter was XXXX our XX operating this from from Our us sequential our full XX with point XXXX of spoke achieved believe the the lower that call. end on I towards progresses. growth of and will as We in a slightly to historical

is XXXX rate to Next, we which XXX in XXXX. growth points in what matches growth achieved improvement. approximately rent forecast expectations portfolio our basis X.X% is for This year-over-year higher blended than be lease

accurate, first our before and if supply means rate approximately of have the of growth through the blends and approximately should X% lighter Underlying blended during X% as approximately growth growth a XXXX to positive second half rate will rate flow-through in pressures points be same-store rate XX year lease earn-in. growth the improving are expect forecast on that of This lessen. impact growth XXXX XXXX revenue half blended on dynamic, basis average. contribute XXXX assumptions new year full We our

improved XX are and or lockers, approximately for fraud. of expected come other growth, as growth further points same-store property-wide XXXX our and enhancements on the continued approximately revenue to item. basis X% on should million $XX which from initiatives rollout equates Moving to innovation Wi-Fi, operating The other $XX property line add million this bulk retention to growth penetration of less to this package such

XXXX. For in proprietary by our cash that retention, $X.X XXXX of million should of be our to higher XXX be Equating that which with for increasing our helps on probability This approximately guidance basis higher Today, improve improvement turnover time their consecutive of resident resulted flow. will retention their efforts throughout our customer a experience basis assumes driven below our project, points residents' experience UDR. have renewal. XX Thereby us months. year-over-year resident

further year-over-year customer years the how we believe will enhance expansion orchestrate in turnover and to the measure, margin improvement map continue in experience, We we drive which ahead. and

occupancy a to reduced growth revenue bad expect positive debt higher XXXX. provide in to Last, and same-store modest contribution of we the combination

that our and AI-based Regarding of screening. reviews mid-XXXX, fraud, measures, threshold upfront variety a in improvements credit resident we recall detection process implemented to enhance

efforts We in of benefits the quarters. trends, recent resulting in have seen recent debt in these more results bad favorable

level innovation rate this ratably throughout X.XX% from improved loss blended forecast. a occupancy up, revenue from Conversely, inverse midpoint some end high additional higher delayed our all of to X.XX% XXXX through low blended and from year-over-year Rolling revenue X.XX%, occupancy, the recognition our that of our lease X.XX%. scenario, at X.XX% initial closer full same-store is achievable year accretion a of the of income occurs range end ranges with lease more year rate growth same-store guidance initiatives. level innovation our or and the with The flat, growth reflects than to growth

our Slide X% Sunbelt better by Coast. and XXXX, Coast, our by the continue we revenue X%. led is grow which to expectations, approximately to to East Turning the regional the revenue forecast than coast NOI XX% expect same-store growth to of will The comprises XX in perform East

leading and We Washington, trends. XXXX's D.C. region, the to markets New be continuing in our expect York

pricing Boston We are due deliveries midyear, in occur which peak result cautious expected on pressure. to slightly more some that are could supply to

forecast upper Monterey softer, The our same-store rent to to to control. and while of West comprises is revenue of Francisco, Peninsula growth, enacted County X.XX%. X.XX% Orange be Coast by to approximately San is due which which forecast NOI grow is some are produce Seattle expected recently to tier XX%

the markets. Austin our Sunbelt limit of should face pricing continue comprise our Nashville Tampa growth of our Last, -- a expect and NOI, we supply to which to XX% be which among and our basis, markets, On year. same-store XXXX, X%. will for new consecutive our to elevated to have roughly revenue power some forecast positive flat Orlando leaders relative third in

Moving on.

As shown personnel marketing estate real expect in primarily the expense on same-store XXXX Slide at driven X.X% of XX, growth costs. and is growth midpoint. This we administrative by taxes, and

on reflects expense and X% of insurance we of December only X.X% While negative CapEx. expenses, renewal targeted to negotiated our the deployment benefit pricing our negative the of growth total policy X.X% of in

attractive growth Same-store end of of our our XXXX through successfully same-store XXXX near-term To conclude, our of strong XXXX summarized results. delivered better expense environment exceeded compared expected range. and supply presents The accelerate and Slide were the to as some but we all growth quarter on growth year challenges, suggest revenue, same-store fourth than operating and we results. have navigated outlook NOI XX, and with historically high an new midpoint NOI full NOI the high fundamentals growth to guidance levels

collaboration, I and the We growth, their drives which operating continue results. the of for to and with increasing retention our innovate resident over innovation improving further margin time. intention our extending superior teams thank

opportunities advantage to appropriate. when are growth We take external positioned of

of the signals. approach sources various excellence cost full including heating partnership and portfolio creation utilize one operating accretively continued investment created to a for to company strategy, capital, capital ventures of and while believe unique our company that unit cycle deals grow And maximizes stakeholders, continue a our regardless the innovation value and will We has existing to of that economic we environment. operating is joint

brutally difference during efforts safety that and the our these you snow to for properties brought country in I ensure to across the recent vortex for damage teams families made teams during and And preparations resulted have to no took our I'm communities California even polar you their recent the fellow Finally, Southern to cold their actions most Florida. special states thanks residents associates. the from our of the in give wildfires the that Texas the and affected cities, events. to to by weather southern of and proud our

that, up With Operator? it will for open I Q&A.

Operator

[Operator is Nick Instructions]. the Yulico Scotiabank. today line first our question And from of with

Nicholas Yulico

as the rate on for us the year details the and helpful through blended in you guidance, the more convergence portfolio? year? the about of give trend kind could particularly markets, of First of a on back that the rent think growth different half same-store terms as you growth though, markets regions of just how terms a of revenue. Sunbelt feel, rest of the there the question just in on into get Is versus you all Can blended sort the is on of

Michael Lacy

it's Nick, I'll that. take Mike.

that I think, high it relates total first to foremost, company X.X%. and level maybe starting as with just a

[ are you've the really with strategy. occupancy I up to lot X us think, rents XX given starts first about Obviously, and talk to this that [ during to it low think giving time be of about XX.X so a us ] report you move of about our think But Happy as we've we our X.X%, had to historically drive able it's months to that important our as expirations allowed of of where about closer to over that all, last today, period to XX.X low. driving quarter. during that's the it's ] drive to to forward. occupancy turnover, cadence heard fact the X a the And us tailwinds it.

of to half And we so first the get supply [ growth. ] to the when to we the X.X% expectations X.X%. elevated our into in as it's And the deal to then about continue X.X% around with year, year, X.X% back of closer half

call half year, In to the that the is right in [ half at lower XX first we ] half. of So It's X.X% That X%. the basis XXXX XX the for points midpoint. again, of pre-COVID where it, first year, about landed still the average. second than the

seasonality built into that have do we And so number.

than than XQ, it would again, We is expect most be norms. lower but pre-COVID XQ higher

we think just were start I around where regions, good on through Page the of the different some to the go probably able it's regions. to expectations XX, to Specific

For now, West about for to we the for Coast, the West Right think Sunbelt. Coast XX is us, is looking to the Coast achieved negative earn-in X is the XXXX. East obviously very though, similar we expect earn-in and blends being for East. what then the a than Specific bps like in were we X.X Coast what higher the places Coast. higher for we

will contribution Our be going X.X to be to X% total X.X% expectations East. that on blends in to are It's around about X region. a revenue our the to roughly

we're blends closer as to X.X% probably the to you probably pretty Sunbelt, basis this And blends And XX is XX or Coast, difference to thinking revenue. On comes XX this, is contribution, this relates total and then it into again, a closer contribution plus relatively only close the bps X% or the around points get minus to West to income year XX other where that as year. on in. small

And more growth in we for And places expectations another are we're about where had lot X%. growth seen expecting X% so XXXX. Sunbelt. the like I've a in us, around year

in it, the So see similar coast. growth versus are, XX% on X% could anywhere closer Sunbelt XXXX, to we to, expectations to from the call XX% growth

Nicholas Yulico

very helpful. Very,

And year. for set well the sheet Second a is is this you to up the to do I guess to more think guidance you pretty investments. seller -- said I balance investments. just net for on Tom, you be get decide to

of that there and where to if don't on benefit pick the raise plan to is how about investments? new if some So acquisitions should think necessarily sort sort could do be is you need of acquisitions, actually you were the built capital up? some going into capital be there actually And we focus to

Joseph Fisher

really sales year one last Joe. say early a that byproduct into have happened component, on of seller up number slip a we of that's to couple that January. Maybe one. in this that things is that I'd Nick, X teed

year. to So those last for funding really related are neutral

just read 'XX net into more issue. like issue So too a I looking us seller. wouldn't a and timing much That's

going and As and through us our week, with after they for with advance which it you're back went happy continued LaSalle relates capital global fairly deployment, capital review, that earlier to them with that months partner, joint being their and deploy We've to front. discussions to opportunistic are partner. stores, remain we think this and I meetings as the on looking see kind venture on sidelines we report, XX capital to had of a action in mandate to

the in from front, DPE remarks a we've and said really as cleared of On disclosed, we've the risk prepared think the front on deck kind we perspective. that previously

course payoffs And in good fourth and well couple as quarter this business year. so the now we we're some had of effective really a back into there as payoffs normal

you one you redeploying out -- side, get to in pipeline 'XX rent to So optimistic continue on we're development redevelopment focused where redevelopment of we and got into to X really goes we 'XX, continues a have see continues X today. this get do don't year, capital and possible collaborate growth the on included operations more development on the we coming quarter But front. the hum maybe well When the and side as of much in that team to starts here team. to with portfolio. then The next the expect

continue so on And side. the redevelopment invest to

anything think of announced past, seen a us haven't we had you've that do And the number then lastly, the front. in I do on OP have transactions unit discussions that recently, ongoing we while

so and capital And out to allocation. with on to looking but be we are those, opportunistic active continue plays here what see definitely we'll

Operator

line the question next Citi. Wolfe with Eric of is from Our

Eric Wolfe

in factor achieving in concessions trend markets your were that a mentioned You your will key be outlook.

concessions talk as go just and about you today year? where might through could sort you we they where So progress think of are the

Michael Lacy

finishing first, note. goes back up of Eric, on a I'd you, tell to kind it strong

So occupancy XQ. us coming down. obviously continues trend high to This very turnover off strong with our a positioned and

our rents so year. today. XXX expectations And again, further year-over-year above tracking of basis. our first the we're are half other occupancy now, in momentum, and Turnover income with what on down January, was XX% for right in bps a January And another seeing the

I and as we're try sub-X We're market active down quarter. little our to now first a up, And down. further occupancy are are strategy concessions that of part to again, our Concessions week in drive the we bit January, we're to and getting on into driving out. push that's think so starting put right drive focus to rents we coming our as our driving our now. we around And rents week right down more move a

Nicholas Joseph

That's for then you're talk Joe, then maybe the there you just the as new change guess there's I far if the CIO from that about And expecting this to that's all? differently capital now the change in processes, anything at going different about is if before? strategy role do company's is anything to role, helpful. allocation it's And as can going be versus rationale more CFO? Or to just

Tom Toomey

Eric, striving I and room is think the always get I'm better. striving to

so with my and start off and first as for And assuming prepared remarks, promotions responsibility. to Joe Mike I'd congratulations additional

part better role them as get under of deeper people's opportunities team ourselves their the And bench. both to this I As well Board is to of value. and advance my skills think push talented to generate and careers ability to executive opens and as and the up shareholder

for CIO, would to in us up opens with in a investment think you we'll and Harry Joe you I it CFO. the with as the expect lot team And And He we perspective. for get key search to a in a stale can X with continue part years. looking exceptional there. to our better how But fresh don't brings an job, working has for success. stepping I but say respect I'm commence to been the slot. "Gosh, say, team?" want CFO, and success a CFO and to the of a have retiring a company I become get And Andrew the Joe the of a area

attractive very a position and capable it's for member and quality very think a stable future. our I team

do along get I've as how long-term prepares company. a been that that's conversation the group get this a again, been is think And element about about I of as better a success. us we our thinking do critical And it talent and So better in it, how always group, growing how has way. we

Operator

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

James Feldman

in guidance. out say Wi-Fi was of contribution this walk you could if that system? year-over-year the out figure the growth other hoping little revenue from through We're move or I years? on bit down just through the trying even number in as bucket Or could income if a same-store Mike, the this sight line goes rollouts to reaccelerate

Michael Lacy

Jamie. Appreciate question, Sure. the

First history XX -- and been income, and a increasing foremost, just we're also as incremental driving in this driving fact, margins other every years well. but as year, not we've of where our those we it culture at for -- to have do relates only more

look max as million prioritizing potential We're about looking in through So different at right We're it, initiatives. to a list them. we've choose them. of got we from $XX We're NOI whole which trying X% we at again, report, year. to on. the to be I'm assess And lever happy ones in strong we year year, to pull had last this income growth another other it's now going

our the we're XX.X% I XX,XXX I and say revenue. our amenity that rollout, Wi-Fi $X.X baked. installing the of lot XXXX got the a this throughout this about same-store over work at But when that look the from things income about the of We are we've think at lifting units we've heavy year. of months. item. about I to done is it XX,XXX the look package that XX% already on rollout. that, I in million last we've XX with a at still comes lot to done all a X% revenue income. And XX lot coming the for Wi-Fi have of that, us, growth at when And -- driving is We promising. look areas, lockers, that it, like of that from other pretty It's billion $XXX looks approximately really it line

feel at other we our item good income So this pretty about line time.

Joseph Fisher

heard on across as Jamie, ad a maybe company customer is course, you're absolute the results focus you've just the seeing with that, line on And and initiative to add a and But investor incoming space. experience on relative. But past. that other turnover nauseam -- lot all in to because down both that, income items. obviously, do talk we of somewhat too, within us the of

costs, So enhance other as that capitalized both down to and enhance customer It's power, we better keep pricing turnover driving do down continue going occupancy, income, experience, on enhance expensed. better turnover. and to drive

so a not enterprise. up lead think which to other you'll show we into but do income the as And I really throughout may there that up initiative, will show in see benefit continue necessarily,

just of cognizant be that. So

James Feldman

helpful. a There's rate? very That's while some the it But keep it years, think can you as a point, your terms going Okay. for does ahead do growth enough still that headwind the of at you rate? next we few growth like look in become to in

Tom Toomey

This is Tommy.

other our spawn because aspects and I It's of experience things of to relationship customer customer in with life. with like about our And flywheel. us a period think for they're to time. off going lot projects income a many a longer ideas going be new more

opportunities So it's premature the some experimenting you, kind But and how Why? I'm of it of respond with keep the to Clearly, we you your early Because in of a out out against deeper is of those. run customers eventually up and can cornerstone they're don't. those pipeline it. I what if don't think own innovating, finding stages build to of you in future success. highlight to backfill

But that it you margin the we'll will. keeps here the where use is innovate, to that you that's experience of cash of that long continue data, to customer convert view And to use project. think case if I aspect find if growing, will. out essence flow,

James Feldman

points bucket the -- green know stock. XXX we the cleaning some and going supply about red of as weighing then levels at thinking of you're or presentation, X those about, coming to XX actually got we kind I you in markets something yellow what's worry percent about into like And up is red, of supply 'XX we're 'XX basis fundamentals and we red where you number move and market as where But Okay. to here through in not Slide historic on bucket. the really here just work bucket you've going forward? to about off think I'm every talk are of a the existing looking supply Like from yellow worry these 'XX. things of as

Joseph Fisher

to. plus deltas of you and or which will, red you're bucket XXX it you look Jamie, yellows When coming we're definitely was leaning than of in lease blended do -- upwards you the from 'XX. minus green as growth the on have basis are pretty market if in middle. the The throughout depending bucket, points, rate meaningful

as Mike regional revenue this kind we which started give where to showed year, allude and migrate think you performance. we to I throughout earlier, the the of back

these going Coast see upwards to the relative East West to of red start compress and some to markets You're markets.

And of the and so has that is do power just part see down going supply that there, same the reason this it little blended pretty pretty where which pricing while which is for don't bit the in delivered, you meaningfully 'XX, we're level, come a down into absolute decline more comes at being supply as from Coast throughout it's really Sunbelt East lead Then we think meaningfully, high high-rise still year. at enhances as go product longer a cycle. West 'XX, developments in times development to longer

X to border of the going into supply If come XX-plus in and regions. frac those going that's all overall across you 'XX, to off be you're get see another percent,

fewer markets sitting than So we'll and yellow more fewer and and red in gradually [indiscernible]. the see

Operator

next line is Sakwa the Evercore The ISI. Steve of question with from

Steve Sakwa

out of at 'XX, the great. Everybody still bit and picture 'XX little what high just supply, year, curious and a but broadly know NMHC, is development. Yes. were you around I'm discussion of a was 'XX this transition beyond painting Joe, I looks like

curious and some want might guys around new development you developments. even new So sounds I'm kind just to of like discussions start the

sooner risk ground So than and later? same to put the what's everybody I the the -- is guess, shovels the that seeing goes picture in

Joseph Fisher

future. supply everybody question. slide is and and into same in -- get on view you that I here think put 'XX of Yes. of generally you of do we some 'XX, slides the at that prior look that to seeing terms -- of deliveries. that the view Great as the speaking,

You're definitely demand. backdrop going to the strong see relative less supply with very still get and hopefully affordability of

is excited. there growth an which so of And those obviously years, gets in outsized developers expectation

challenging. I ability is the a future to ground excitement and actual think translate into bit more on the the a shovels thesis little in

of point the still construction to little so come terms LP still high equity. or challenge the The XXX minus back financing of are improving plus the seems seen bit relatively spreads are range. to and of basis bigger they start The that banks, a have be We availability kind capital. from in

those done out and go there starts you development get can so today. raise capital to into to And deploy

capital I much. in So have if you thesis, the it. us of you have Do the yes, so think believe not lot a

your surge So here big a the extent runway a good to not of point see for years. we on couple overly And of that concerned about have still we more supply. do think it's in do, pretty issue. I a a We 'XX

full of on high X those. projects current potentially on year. to up for forward yields it look of underwritten so moving basis. to looking we're We have I teed and at that for this with terms those those or capital, X on the We're ours, that a here X% with kind going starts In to mentioned how X% relates

Tom Toomey

Steve, I if Tom can.

through their cycles. cost. truth penciling deals. developers at a lot where saying, is shops why replacement capital of these below know been busy am of there And and buy all are to a I if we're lot and keep you building You've is the The looking today, over can I trying

sale probably the up development So in been any more heat hasn't there's 'XX will up. growth. 'XX, to It acquisition a to where there the rewind development rent before -- market, market bit little is starts going itself

it think at it's step and we right we a back what -- window out we that and So prudent, see it's be find. for say, a and there can window there's where get Still look and acquisitions competitive now. but

Steve Sakwa

maybe on Slide XX, for quickly just Maybe Mike. Great.

and look 'XX, way 'XX, more Just 'XX other elevated there's around. coming much down growth for some an as in loss number from taxes but I'm where kind was like in. just the personnel big came looking in in of 'XX real the going you expense at expectations at estate deltas

you more thought in risks Just sort budget? have slide? see And the where do about on that the how of you

Michael Lacy

Got it, Steve. specific I'd say, and first personnel. of And 'XX. about all, thinking to 'XX

had refund had cars deal we to we with that last reminder, a year. the Just

about anniversarying of that. personnel our mainly that's up off because so cost expense XX%. of And And was

a Now will. normal you rate, of we're if run kind back to

to made how and in like our And we're a those they've playing lot utilizing at we so with around efficiencies lot our also things some team lot income, a the been you look but That's progress about anniversary. if numbers year drive here good. didn't all vendors We And been out Things X.X% of when this have other that different initiatives. down things doing with that. around, of today. The expenses, it, I see doing a try we that costs. technology, these has mean, feel talk trying some call would in deal of pretty we're we to consolidate

so good and going for a feels us, into running it we And 'XX, and 'XX, good ended note in off on 'XX. we're

Steve Sakwa

And taxes just maybe real to about? there quick. Anything speak

Joseph Fisher

have estate place the tax did in we in that on real terms of some took side, Steve, activity appeals wins 'XX.

the little types lot is we're a it's going to taking of up those California. a really higher So be after in going out bit Obviously, deals in probates mid-Xs. same of

to initial look X.X%. we most by So honest, be that down markets, them minus When or number you range. appeal in to that are regionally look of of plus

seeing come Seattle, we I really think -- is down. only outlier were values in with up the coming

there. growth a negative seeing rates more side, there tax forecasting Boston, -- we're estate actually, over we're in in so real And little largely in year come higher growth And other Seattle, the bit that the markets Nashville. Nashville. pressure we're within out to place more X-year X.X% right little we Also then most now, range. our in reset thinking in X.X% a take that of have But tax

Steve Sakwa

for it It's me. Great.

Operator

line from Bank with America. The the of Spector comes next Jeff question of

Jeffrey Spector

in think tie correct end lower does versus about end opening top is let's or how to, the the And the I if talked please on that's guess you guidance, question my of you confirm not. late at lower Joe, say, I supply remarks, right, Great. here. said -- 'XX, your call, benefiting level that confidence really upper versus midpoint?

Joseph Fisher

down we for year blends. to earlier deliveries. trend does the commentary terms our continue supply have down see which to And of expect Page X, you in Mike's do see demonstrated plays throughout trickle that really it on markets, we the into Yes, on

then first peak to our see but board, 'XX. half across about in into into half, driven the a some more with first blend talk we going Sunbelt That's go a little half see that roughly a lift bit assumption so little as we see And out seasonality XQ kind bit. throughout the did we XQ do as what the in significant a decline more deliveries. to And saw those second we line with of being as blended they start of number in start and declining seeing year move we accelerate

bit a help. first versus activity, decline We terms us second delivery couple half with should higher think the comfort in I the of little that so And of there's a that things give which now in mentioned of half.

to The other continues be strong. strong. environment pieces affordability continues relative obviously, be demand And are to

getting that we back growth that were below assumption guidance the Xs, rate going up a and blunt into comfort well second half the us lifting into norm pre-COVID definitely at So more on which of of still gives kind 'XX pre-COVID. year half the is the And piece. when what we get into into we're of the

growth, and kind a the between there ready Page assumptions I'll of and think you as within the But give XX we and think just put second other XX, mention, when then which do I we Page get occupancy I just in up totality, for XXXX. same Trent too, to you In Jeff, exact the blended debt. look basically get webcast. presentation, to about lease at we that want it to thing earn this, go is revenue number, innovation the X.XX% to these as bad rate what if

normal if point got some contribution X.X% back seasonality only a would coming can to blended now. midyear [ in X.XX% rate there so in basis see you X.X% which half Typically, And rate weighted, blended have on questions are [ about more lease it the we curve, a right translate a lease we're convention, because that But overnight growth, off XX ] talking you you'd growth. of is ].

the revenue what that pretty typical in XXXX. is you contribution tells really it with So we saw

we back delivered growth what pretty look acceleration blends spot assumed somethings the don't guidance lot with of fruition of as of half XXXX come that issue we these most issue and in rev that in contribution instead a XXXX. they to more haven't in on of earn-in the a a 'XX or So revenue

Jeffrey Spector

the that you're or Okay. are guys exciting I And AI-driven applications on always or whether into? looking seeing. just then Is new new. you're there you just initiatives. technology I'm know for horizon turning curious to scouring tech here the anything it's

Michael Lacy

a funnel be say going we're this to saw recently just implementing our things. I'd that CRM Yes, of couple year. as some maybe transitioned, people we

is not we're and team about necessarily it's be think on effective, with down more to important have new -- back to drive a allow central to going will excited the get definitely of something on bogged us office. ultimately, going our relation lot to and we -- it's focus to [indiscernible] more ideas efficient to So our that And that's really help it. it. It's

X So X to about that that's to the rollout. next over months. be happening excited going We're very

we're resident technology. In with back are addition, the as who you that before goes just coming some about It last the of with be door, will, initiatives, if identifying year, it using us what allowing who talked bad is to other and relates actors, to through making play-based we're of a sure things the the to doors. we event front

And sure that's will, and you riskier that out. some given them dividends we we down stats size year. feel of our capturing just saw we're of if residents, rolled the you bit kind more really as recall, mid last ID today. come things We door. playing making a to to -- roll occupancy it, around out our like we And if that through to that like hands verification, our started little a of that out. we've got income, So just proof few starting pay it comes

up almost are this point. Our deposits at average XX%

XXX scores XXX. X% credit Our our X%. about points actually are up XX versus cosigners And closer are to up or

drive that have our move to to we going forward. continue make we revenues as is try that So to sure good we revenue this think and

Tom Toomey

this a could bit is If add Jeff, Tom more. again. just I little

we is here our I think that the data. own key

customers day could much then to a the how can more trends position are facts better looking Mike enormous it's not better. we builds what were model business so you to how business way that our for customer ultimately, just prospect and It's will, winding responses around data individual mine the look me move from pricing all missed of customers. those if to every tell out amount product run accumulating the the we're data, we're So the corner, every market position, to the anticipate warehouse, ways interaction and on owning to that an

know better, it. just So we amazing and run I stages faster, we early much entire about focus help every money stand that the team on where we facts always it's very how I we're where us has where think Mike It's and think the the we through the business and more sit going, efficiently. are go and

Operator

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

Austin Wurschmidt

appreciate revenue the first you the back for guidance, the earnings. you markets, question half, all lot you regions. gave of Great. deceleration Mike, half reasons I a for the assumed do but some the which But a have versus detail higher same-store coastal markets across in cited on despite Sunbelt having assume acceleration the

that in driving of the Coast dynamics could And this the given coastal being assumed some the discussed what's upside guess year? West I actually positive some particular. you regions deceleration on see in So

Michael Lacy

it's good Yes, Austin. a really question,

the Coast, and blends to to are close earn-ins important specific think look I what point our experienced at our West out, when the very you it's coast, to we year. last

reason and Coast a us. going And is seeing Monterey The the other really to whole for standpoint. deceleration so of like lot place come from difference West not is like a a in in Peninsula that income place main the

meters as as reimbursements We if those front we're have assets. on we sub charge with well control that at able are dealing not rent for don't to now our

'XX million driving so about for So didn't more that if about XX growth. basis $X we points to West and us down have million have in Coast, a we drag in $X actually that's the

And look actually to very XXXX. so our similar would costs

growth the around to in it going again, are year. Expectations specific comes other have then Sunbelt, XX% really And to we the XXXX. that again, to to back close down XX% we're had this which, growth income

recapture going [ back a We submeters 'XX get more to around -- income to we just a going, as have that's so start Monterey then to the initiative. and a that and and ] And ribbon as try far to 'XX 'XX do can plan put in of of we're get Sunbelt a Yes. Peninsula. probably in lot there,

Austin Wurschmidt

then gears And interested a just I'm just impact kind helpful. potential kind in the it really and Joe, just market privatization That's and housing have multifamily. of obviously switching your transaction of and or market, level, on you could about Mae broader Tom view Freddie high of Fannie maybe think

Tom Toomey

to anybody sure of This Toomey. is long Washington going living days. these is predicting a I'm very what's out make coming not

before seem wants that get let other and stabilizes to that And functioning the cards fall I they're very working so pass high where just they It's anyone lot -- things they will to see a any that of It to the group. have of disappear. on GSCs they don't think aspect. a I market. the in

so then that and leave over in and the to I'll hands whose deal how And to run. it people it's that it's a say speculate have with.

Operator

UBS. Michael Our next the question is from line of Goldsmith with

Michael Goldsmith

are willing growth that rate range? much push during the to occupancy peak to And you How guidance need in see hit sacrifice peak to season? much you rate to the how season

Michael Lacy

Sure.

I think that's sizes.

XXX a -- That's of mentioned. you $XX I the of It's about at paid-off. So a think about think, $XX When about X% of homes rent approximately $X,XXX. is year. year, in per $X about equal home. we million about way think million loss to occupancy, X% occupancy given I all, first

just XX, basis breakeven in is it given to basis about points, we we year. a points in need by, XX lower way think say, we the if So would occupancy XXX rent

that low shoulder I have the don't demand. you can capture you where quarters if know in

strategy. with seen it our you've so And

during for it's of your let and As occupancy try on period call down, it, demand starts prepare strategy that a drive prudent up again, or where to you we quarters, that another willing to we're X% drive we to think But rent. occupancy migrate that our more the if capture pick that really time shoulder bet we rent. up, take and can to can't

Joseph Fisher

credible think do to it's Michael. I --

get rate, lost group As in on question turnover don't want sacrifice. it that you to experience much component. willing about are think is occupancy customer the about decreased of your a terms strategy versus comment how and or occupancy of I we but to Part

continued the Mike in referenced in part earlier think that I that's of the in decrease January, turnover surge occupancy.

not rate the all it's necessarily time. trade occupancy So and

that good it's in results stay residents wanting occupancy service and longer. Sometimes just customer better to

you to as components it. think through X there's So it,

Michael Goldsmith

question my syncratic any That's growth. or to lumpiness second of but looking any year discussed due there maybe expected [ ] lumpiness helpful trend, Or is of is context. And same-store trajectory the blended rent either there in? negative? revenue the we've Is through for that at factors positive

Michael Lacy

pretty are No. first the I mean, throughout year, half back the little us, in for call whole of lower it growth X%, probably closer not but in of the back year It's bit maybe consistent. half. half, look is the we're to the when X.X%, to the X.X% reaching we that maybe X% upwards the a a and at cadence then lot of lumpiness. of expectations

Operator

Brad from RBC Capital the Next question Markets. of is with line Heffern

Brad Heffern

number You the a in mentioned of uncertainties slides.

like you way. some predict in or to and regulatory you curious blame much specifically I'm if All But And risked you've immigration? It want dose seems at in items guidance how of to regard political those. those don't don't are for with those the I that. all?

Joseph Fisher

around could mean We base of negative positive think it's our these. have And both there is not. a in why all range uncertainties case. I I and be

we terms legislative level this at XX% formation, regulatory over which the that driver with a small about and also As lot from there's coming formation, But across we may business like less rent medium-sized with is growth job of also regulation fees, deposits the risk, small nature. just talk think a about the regulatory there's that the you control federal or country business something side. things pet that really in local we of of from of both legal state risk employment think see and perspective, business but --

the see all of administration cut some So this. if be positive in that red I could where first that of we a uncertainty think what tape, actually happened in you've

as the including remains be environment. they nature. differently. I or some the cuts or potentially federal head a anything rate question different actually at that said entitlements think same their pork on thing of markets could But may or federal those the level, about of impact positive to concentrate be It could it for interest where perspective the

around all it's we put negatives try all factor But So range are hard that a to to to this positives. in. they're say

Brad Heffern

everybody a Okay. low question the And has project. Obviously, record then on Got it. been experience turnover. seeing customer

So out the you how the broader of acting. versus I'm even what sort levels from is separating lower move record can specifically us then curious program. that And just of you're turnover the gives confidence how benefit market already. that

Michael Lacy

at look We this Yes. and basis. an both relative a absolute Right. in

what of so XXX of tell I that going XQ basis, on would relative time, on you And about X.X%. against to same down -- the period. And absolute basis we're is back an period 'XX, points about we've over by basis improved a

point, it have elements still how of turnover upwards Tom this in about fact it but why we million XXX read talked So is million have we tell a a And we that everybody's [ [ of day. ] ] can everybody previously, just do data. a data ton watch it's bit at little a down. because I'll Not it against you believe else. the we

we place. the have team so in And

to have our dedicated watching stuff dashboard down isn't and be month creating points And a it pay with a planned going And We We impact rollout dividends for it spend we're have to basis. playing do these we another I'll is able to residents year, then a the the out February more that's every year-over-year CapEx out. try think I factoring have we again, this in tell even the I'm that what little our CRM. of to will also sites that is saw we year. Expectations play -- all I little bill down that NOI-enhancing going we and are the issue that problems to we too. are January. to that's with know be think the And again day, fact spoke at most to touch lot resources this the of on the bit about drive bit that funnel, an see you are in that excited list. throughout a on And

there's on lot to to work a still on come it. front. this We're So continuing more

Operator

with Goldfarb of Next question is from Piper the Alexander line Sandler.

Alexander Goldfarb

Two Here. questions.

apartment have on in offer general growth for growing services entities, revenue and But the your on income, sector. you the different the we that different still forefront the other the on residents. supply/demand at about earnings based growth First, certainly guys you been same talk of time,

truly still then but -- stomach at a stomach the They Or looks pie a together. So where these the are increase can you other shoulder that "Oh, overall these accelerating the fees, sort push I do on efforts earnings is say, or you I can feel push growth? can it these rent tenant resident don't rent mix of and either fees." incremental whole

Joseph Fisher

Alex, constant source that's of a discussion internally.

capturing we're going the amount we are of bucket. in rent should pay is on where not you're and the are is of studies to more we concept we that of As past that think a other one believe much going And what done over cannibalization total about as while effectively we component. cannibalizing income we if the bunch have in bucket, ensure to to you work other willing pay receive

that what Now website our other you what amenities going in the that's or unit, one items do have, gets you see can go bill is kudos select of pick very will I helpful utility we what resident you're think and can resident you where the for upfront your your things all and us from typically to income on pricing can in be.

which front, transparent, up industry. is we're within a being very right the so And rarity

it first in through know surprised total residency. the when get it coming trying address that not they're the have doing us. when month then we don't we're think a think the comes we to by their being to resident cannibalize now they that with. in for appreciate don't I of they then and sure deal, with transparent [indiscernible] to residents also because make And check They're check I

Michael Lacy

Alex, just residents. us and for win-wins these our are quickly, also

competitive about gives a helps it us provide them think example, process. like It with them self-guided benefit we frankly, are as access very that quite We're it property. with the helps our we to And an our out, when so sell. across tour this, to pricing. trying Wi-Fi And Wi-Fi, helps

for more we're residents mean, to to I them. like -- trying for So things reserve that parking efficient it there's actually identify are better spots that make our

things it we benefit us. So in of as a lot these how keep mind well will as them

Alexander Goldfarb

Okay.

any underwriting The fill second question is can -- changes new Philly geographies any guys other these just to no you from look would learnings on the longer it's that to just as are? the done. of debt of investments, and would an were and yields preferred these is the X the But I'm there why equity isolated business there trying probably one that Are going are at? Or appreciate and yields look at way business was Or this the watchlists you the forward, sort was part are you see, or change?

Joseph Fisher

very through how Yes, great at components had think and at wasn't changes. to it's look structure book, versus of of I working look development we a it assets operating is a any on you now. utilize the the the that. question, terminology and When much But It's fair fun. I think

within have the the of now recap So pay of we're XX-plus the I cash that And have to the component. we've amount of deals percent current think continued operating up to portfolio. side kind up we ramp a

in lower of there component. get learned the you -- time think business. And lessons so into mean a I the little terms of And quite a are are we loan-to-cost bit that pivoting few do a lever then from book I perspective.

think we've that years. I during lower back we're development look loan perhaps ensuring a committed forward, cost at COVID deals to than we definitely were going we to when at

marketing they equity the when by to out, driven number really make some out bit. these degree. More I partners ultimately, we think to these because continue are challenges get constraints it wall sure to analytics improve earnings, some back while drawn our utilization A of drawn get of may supply the ensuring don't as little and against put a team.

investments. high profiles ability find we NOI impacted so And to definitely supply therefore, recap and these and growth concentration, negatively rent

years cap think some We a to cap the to that sub-X underwrite XXX were I when [ increase cap points see rates an we during that then X or just kind to you're that scenario ] raise And degree. not cost run-up going analysis. of and XXX COVID of in did of basis the in borrowing

in scenarios, analysis ensure work the see of and we that to in paybacks. So do through area various

of structure number and as well. a learned of business lessons there's so the to approaches And book

Operator

next The with the line Capital BMO John Kim of is from question Markets.

John Kim

million to in you XX other Just aim $XX things it revenue, revenue. light point actually income, year, because back basis going bit for $XX the to Last in seems NOI. to little million a implies addition

going million $XX that? what your the are you us comment that another typical other And suggesting margins also on Can you're just expecting You're forward. income? on remind

Michael Lacy

margins The average, vary it like can by charge on initiative, Yes. Wi-Fi, you $XX and for on around tell something average. we cost us I the around $XX

strong a like and things obviously, pretty more parking. try to margin up that's doesn't So cost parking, drive it anything to us reserve

actively furnished we things rentals, book cash of just bringing we've then achieving short-term do that have to the lower And like down that there. a the last couple can. margin flow trying years, margin we're on been we sure highest of that huge So business, and over make

last growth And a million in we're basically, different. up and you're and choose throughout hope we last bar pretty can I drive see good which again, it. do to that is looking number. based XXXX a But that us, all number initiatives feel and the for pretty repeat lower like about that I had good to that I $XX year feel try to bit into it [ today, in on exceeding we Obviously, hope higher pick we that always was again can X% those little very year, -- they're we that, the everything referenced year, strong. right. ] earlier we it. seen a we we ended from So

John Kim

Yes.

of whether measures much. you vacancy But a Mike, Monterey there's components disconcerting control Peninsula, to haven't rent control Okay. certainly up decontrol can on hearing because not mentioned that measure? or or gone And is which other concerned And rent that you new similar in rent rumblings markets? then are you little you a are in comment

Unknown Executive

is have does but ]. be this that look bit to abided further, [ it can a little at by John, Costa-Hawkins Chris. We

a vacancy don't measure. -- So I there feel that is no control there's

John Kim

And commentary other markets? any on

Unknown Executive

year, looking state. as say, bills big there's X the at in cetera. Washington level at are far I Those kind an we're freezes, if at level. focal The thing right at biggest the looking Obviously, points, state now. of especially California, this there's rent as commentary agency would the state out of we're legislation A of couple et

Operator

of Sachs. next line questions Blouin from are Our the Julien Goldman with

Julien Blouin

rate growth have missed peers in blends your seasonality. pricing new that your also events might noting than And guess, you I January sense give lease by January region? one are normal I that but and it, seeing Sunbelt own of of felt a can portfolio? better in you us was

Michael Lacy

Hi, Julien.

tell track miss give other on at you occupancy You than the we're blends. didn't to higher exact right year, didn't lower we initiatives what we would necessarily expect look when than I and is the as We expect our income to it. again numbers, we our is turnover of related is but as well end it

now. we're good. pretty feels So we about in frankly, right and feel February, pretty And quite that January good

Julien Blouin

Do better at continue that, these this the about it, high pent-up pent-up on maybe growth. fourth seems And we several migration absorption that migration a or demand then from than really start in come expect that years some you that numbers I current absorption Sunbelt maybe we of have demand? trends strong the through levels point, job worrying to do mean, about it. to second in job at from And the look to markets when quarter, levels of to of starting would those of speaks feel deplete one. the growth Got Okay. those in it I even markets. maybe and face some

Joseph Fisher

Julien. it's Joe.

it's of X I kind think factors. different

affordability first about talked relative The is we've component. lot a the

about we've past pivot over seen rentership household affordability. got formations the saw household more when side, past. year being given society the the we've and the in place homes this talked towards being existing sold, of housing been in then tons what materially mid-XX new given you of seen take relative into than kind built the But the the you've which rentership we formation different hasn't So total the lack activity lack of

XXX mainly affordability. So a get that to and come pre-COVID XXX in expect we terms to trend, back come to to rates down multiyear a prices like basis level to points need because don't home just feels of down

individuals again, off couches So some other you it's that. -- homes And the get a little in and bit of of hearing are basements. coming renter's

age cohorts, that, So little when there's of at cohorts a home. a you're look bit younger high been at level seeing you younger of age living pretty which

up And that they've as their little into and so hear you're years. to a income-producing savings bit built of starting their got

bring as people and get home to and couches you see to and return off that return more more well. does in work office, at And as back then lastly, them

during And a tailwind of different couple record providing so of that are trends there's supply. a the phase

about, into we're talked 'XX. and kind we move we in As of more 'XX as decrease going supply normal here

perspective. what The I so just from generally demand place. even will think the obviously on probably one trends those a big in jobs remain And be

Operator

Our Alex line are Kalmus & the Zelman questions from Associates. of with next

Alex Kalmus

that to focus moment. that from any what at First hearing? any year. ask more might roles supply And and is your potential acquisition in off, firm, volume definitely last this Joe, be and markets seller upside to unlocked for optimism to wanted congratulations for at new your Mike acquisitions for strategy the at about There's NMHC you're particular week there

Joseph Fisher

Hi, picture, one Alex. of favorite It's there. lot lot a obviously side. the be Joe. was go-forward fundamental of just There optimism definitely in to out continues of for on a in the terms there looking transactions classes of out multifamily NMHC but not capital asset the

think of that however, that challenges, sellers best the one dynamic. see same the is I

Do you're capital fund. a funding force unless on due up coming the to going have so don't duration -- a such think to refinancing a that effectuate. able seller you're a to And of be event, end of you you as

market. assets You're just not come many seeing to

couple kind our focused keeping transaction side of bullishness joint seller we're the so effectuate though, which side target we're is on that there obviously, the a of is and with sure with still markets, the buyer to we lines on them. And down partner, of trying We're and making aligning is, a through. about deals different couple venture LaSalle where volumes talking work on

is that to about a redevelopment enhance talk to the look look to transactions, typically continue growth can to either our But to continue value-add operational team maybe on-balance in see can and/or those prepared to it's now. team the nice disposition going component that not NOI we have we to maximum X-year-old I'm get activity product will flow going be our right off a for that to So try over to a to as if of get company sheet as time. lift at at well cash we and profile X-

Alex Kalmus

know sense. of context funnel, it the initiatives are touched you innovation Got just effect more rolling been earlier, it. with up. I about into Makes And additional the on technology the partnership any your on provide specifically, there you've NOI partnership? recent details its you And it but on can and how fits or maybe

Michael Lacy

I'll take that.

started rollout it's end to experience spend how about all innovation. really us the customer all our going CRM deal have to when probably X I And that time how project further. back that we we ideas leverage a lot the and allow It's to more think we funnel the all customer office, going with other to dealing for with data really around the own us we that were not allow pieces specific have all it's to even of quite years we're the again, frankly, of wasn't on think to be going with these to it, drive not us we the experience, can because, help ago. on because

us it. And long is so done we've had a job that's to going to group time. that allow leverage for -- really notion quite good a a with a This

And streamlined omni-channel I'd say, call we residents. we to just our to with a had approach in how addition prospects and that, plans around online we process our something move-in leasing more seamless process, and communicate

and a that We're there's the to learn to lot we're just service. next benefits going going months. of lot this, now over to the X scratching come X a So are with

Operator

the is St. question next line of Our from Haendel

Securities. Mizuho with Juste

Haendel St. Juste

for ones there. Two hanging in for Thanks quick me.

curious... on I'm follow-up a I First, development. guess

Joseph Fisher

You're breaking up.

Haendel St. Juste

development. My first I'm how curious you question on are... guys is

Joseph Fisher

the queue. have We can jump you again. a Operator, lost back we in

Operator

with is question Linda Tsai next from Jefferies. Our

Linda Yu Tsai

one. Just

reduce said like larger turnover XXX You operational be turnover? this opportunities you markets certain to there it's mostly would see lower It sounds Are bps improvements. where from year.

Michael Lacy

put bps you, XXX year. into February, at and the XXX year. just question. again, can the And prior bps looking we're our than January, tell for between better Good again, I'd we XXX

downward mean never I look I've see pretty So we're to to off when the I our we're markets, And sub-XX% was January amazing you that. can consistent our start. tell a pretty just board. trend like was number I really a good across seen regions, it at turnover. seeing a

are broad-based on And all have pretty much we frankly, resident property implementation country our in backing the quite have and the CRM, it's that the that across property. we because data the every we at efforts so with market, individual of every the every

should it kind So broad-based. of be

Linda Yu Tsai

with reducing associated there that Are turnover? more costs

Michael Lacy

A we're spend. of bigger little bit. bet year, more little a a bit CapEx our This terms of in of placing some

these also recurring basis. get properties where issues, that things And again, we've HVAC many try a on given nature. if identified limit as or that people out we had to we or And in to going think in fix can we're water we so some are and heaters how relates it issues moving of of we've there -- recurring just some can

OpEx. relates to balance, on CapEx bit little not necessarily but the a So more our it as

Operator

from is the with Tayo Deutsche question Bank. Next line of Okusanya

Omotayo Okusanya

Perfect.

about Sorry that.

question. quick a just So

how key products. bit of more about the a in you an of townhouse, some peers just think given kind like of kind FFR of you just kind that kind of type is I'm more guys increasingly FFR already especially opportunity, like One kind townhome product. in your curious of markets. doing little of terms looking of as

Tom Toomey

familiar look it we're down to product, we've capital Dallas, on striving This don't is for put down a opportunity done and is And the development long-term Density think the would and gives go only at in the you density past. Toomey. where if flow. it something where Yes, get times it's there so townhome XX have homes in cash with a opportunity, a hold up you'll and that most why you product enough us find to Vitruvian you grow. footprint periods you I'm and bigger in always you fits okay? quite about just have site And our

So of it of fits, more activity. development it's product. out It a farther generally type good suburban Phase of a lot fringe II be can

we down of So capital we're whole find familiar that when look capability the and grid deployment, reward we with fit sites have Leaning in it, risk that template Joe's certainly execute. that charge the think now. to our I of in,

Operator

Haendel coming Our will next from be St. question

Juste.

Haendel St. Juste

apologize earlier. I ones. that I for X quick had

those of labor looking factoring term, you're on high I'm from higher I And X are of that mentioned. costs much guess start lumber near input is development. First the projects potentially into X tariffs, how to yield locked curious X or how in you the potential were in? targets costs you

Joseph Fisher

Yes.

seeing in cost of for at you're 'XX, point period a have short of time. early stabilized there this settlements kind So come really down of costs kind time

some have factored underwriting, So pressures. in inflationary our in

bidding We there trying in our out costs and out that to right lock start are on first and now. out

so the that process, this in project, at estimates the in potentially that are they year. got that in is second of piece starts time. point could be the We've locked of in And half not this

little So fluid. that's a bit

fact, of like level. stick things at of while what front, coming going of There's to depending obviously and think at there's the concerns the tariffs to things kind that and those nature if, on I the tariff be side a origin in actually would couple the equation concern near-term of be with lumber that mechanicals The Canada. may other glass source. lumber on supply and risk from the be

as of The greater is start labor. you availability is activity side flip that there plummet, to see continue

happens the able keep pressure labor just and trades. squeeze from being out seeing to to and/or seeing either certain working with people our just side -- would margins wage less And what so subcontractors

So the it. that deal first right make now, some we've forward like there's at we feel with we sensitized sure back balancing can move to But it. to least

Haendel St. Juste

up could how next or quarters? pipeline? curious Got flex today? perhaps potential be many your maybe so? it. the And of Just the the it. And that you couple quarters looking next shovel-ready How in at soon here could future many within of are Got couple pipeline projects then X over how

Joseph Fisher

X there's right say to months, you that Yes. forward shovel-ready. shovel-ready projects could I'd X over XX or either probably fast next the are now if be

kind engineer, and see yields. we we tail through what So some to of continue of of designs, can the value to going them end enhance else do

needed of to within X those say, ready Let's if projects X to could we months next be the XX be.

Haendel St. Juste

the And same? the yields would be about

Joseph Fisher

be to we're the what that'd targeting. in X% is Yes, the about time high X%

Operator

Mason of the with is line question final Baird. Guell Our from

Mason P. Guell

preferred [ junction [ attrition you maybe the ] any the notes then have investment update in other X,XXX [indiscernible] on there demand and equity book. the On given been Do year? -- any has for ] And hire? change

Joseph Fisher

of part Hi, Mason, think I that. caught we

the very the continued Oaks I has demand back X,XXX -- on but if project correct, for obviously, if asking X,XXX not that's in and Unfortunately think see demand. Oaks could strong project. from that about implications to the you reiterate, jump how were you fires.

into we project to kind has continues ago low so already and momentum. occupied from mid-XXs see and few seeing XXs leased That And of are that. gone the good weeks a up

well performing what's face the is object circumstance. that so And in an of important

Mason P. Guell

that? Can you this mature any on get give me have something update on you I -- Do an update year?

Joseph Fisher

the of maturities? pace What

Mason P. Guell

Oaks. X,XXX On

Joseph Fisher

maturity probably going we that on extension just a Yes, just shorter short-term side. at to the the to see it On momentum be on that equity to Oaks. shows partner is a X,XXX continue and looking years occupancy loan as

So term to work going this good probably deal. through very they'll we on should I probably continue It got that stand But short They've what's L.A. that in do trade year. think equity out well. in here valuation, transact there to think good

Operator

Toomey Thank to you. Tom to the turn like closing for back now I would floor remarks.

Tom Toomey

Once support events. forward again, with that, you And thank time, all take to you of upcoming care. your of of UDR. many at for look interest seeing and We

Operator

conclude today's conference. will This

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

UDR (UDR) 6 Feb 252024 Q4 Earnings call transcript