CSR - Earnings call transcript Q2 2021

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

Operator

Good morning, and welcome to the Centerspace Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mark Decker, Chief Executive Officer. Please go ahead.

Mark Decker

Thanks. everyone. morning, Good for filed XX-Q closed. ending XX, June Centerspace's the the SEC was with market yesterday XXXX Form quarter after the

Additionally, centerspacehomes.com supplemental to our X-K. and have earnings posted been disclosure our filed and package at on Form website release

today's based course important it's views assumptions. on will management's of our other forward-looking to outlook our current business During and that statements remarks call, the note include that are and

not Chief by we We're be Officer. and result, to and John guarantee that my place Operating statement these Officer; since forward-looking resilience, on unimaginable materialize, this cautioned fortunate reporting for our results reconciliations creativity refer cannot our any you of information, XXXX will start and and forward-looking the are Chief thoughtfulness appreciation in on our that discussed morning any months and With that Kirchmann, As be to extending today's incredible to to release XX want these support displayed Please me reliance Anne were business, began. undue teams is non-GAAP housing our community a have statements. may call. thanks to I today ago. Financial which earnings Olson,

late By us property In starting get X our Rise move system we dime, legacy last addition heavily turned in year to we as in phase the allow from as and system last been market of hard work to business, on housing more to this modernized a year with our management and that campaign. will the that our to far enabling being a a at have investments more teams make our renaming considerable

better one company every is today reported year than in respect, a in reporting that's or even ago So the June. that the measurably

expectations for of increase. are outlook us our our core raising core the grow third NOI We FFO continuing FFO we the own was we share NOI and recovery If FFO XXXX. previous deliver, believe midpoint The that a the we our year 'XX, lease in to loss rent that readers leading a better growth core exceeded the $X.XX, our is the range now the strong grow X% of year. each validation significantly and and and the quarter, we've are of into the in growth, which Careful course, our second of note quarter core that's from And the of can $X.XX, the FFO. $X.XX same-store XXXX XXXX our outstripped will to balance business. for quality we forecast, now up can captured well of our and for portfolio sets per embedded of to bottom FFO. as will of The our core same-store trends rental

who particular, in will shareholders closing nearing our a enjoyed KMS an stake. housing lot is partners On exceptional through and double have this our disciplined fact announced which leads the the we allocation, and is Cities, Management. is as customer KMS for portfolio the X. their the we with through become us unit scale XX September the OP KMS This that planned our point in we're in Twin or business which will efficient in to price more occur investment we on is X,XXX to experience operations of shareholders efficiently product portfolio success capital where residents and the opportunity The side, to attainable more our allows upgrade a for. pay B asset June,

assuming Nashville Twin but found past and over past while million And also pricing of and have asset months said, continuing per and operations, the quality all-important a cigar ops and to XX give perspective. that, million at KMS, in homes, purchases improve billion $XXX the with $X.X apartment to lowering the all returns, the update flow from the permanent capital Denver year. base of $XXX like ourselves equity on of Cities close to continues being in numerous quarter our torrid added we earnings As over close XX%, into Anne no in pushing we sector please We'll share us the an by an on elsewhere. the grown over will That outcomes. I'd have pace,

Anne Olson

operating heading you, in accelerated tailwinds morning. good The Mark, second we us that in and QX results great trends Of Thank into saw strong QX. course. and providing with the quarter,

of realized over over period. in a same-store X.X% a by portfolio X.X% XXXX NOI increase increase the same quarter Our driven revenue the second in

up are over NOI. XXXX, period revenues year-to-date increase X.X% driving same a year-to-date in Our X.X% the in

Our revenue rates stayed and XX.X% has about second quarters. past our performance all XX.X% our in as average XX.X% and occupancy lease the for is was quarter X weighted the between consistently

increase our increase same-store the X.X%. Effective were quarter blended a the this climb. is which and rent to X% XXXX, time $X,XXX, higher unit, second QX $XX times over X portfolio for this rates in than in saw XX% to time per than continues occupancy, X.X% in QX a lease, years. more rate rise move-in is year, for increased and $XX more which of renewal occupied revenue result last than rents prior Our of

have our markets. been secondary leaders Our in

year. QX consisting period a of Mountain also achieving in realized portfolio, decrease increase when for Rapid in expenses XX% over a revenues Other a XX% City, Our NOI quarter South the second Dakota and XXXX, Montana, comparing while the increase same in West last Billings, with

significant across moratorium limited specifically our in still is effects our markets in the where Minnesota, some pandemic negative exceptions. place While are seen portfolio, have with of gains, lingering the eviction secondary there

levels, While other have markets and to outlier. an pre-pandemic collections states returned Minnesota is

through gain XX% with second anticipate in and moratorium programs relief in Overall, phase does policymakers assistance quarter. accounts. improving our portfolio were collections forecast Our past providing of the to the out this work rental as traction the residents due

the slow and lagging downtown been respect our rents and are Across urban replacement for pressures. X.X% demand rates, Denver on in renewal whole In assets, secondary the market, and the saw lease increased stunted our of and replacement supply Our our markets still renewals are areas as Minneapolis of has to the the these markets, Denver while renewal corner recovery return Minneapolis X.X% And new turning experiencing increased office X.X% X.X%. QX. rents by office portfolio, increases to QX in increased workers. with

set stage have success results year-to-date the strong in XXXX. Our for

expirations of QX. we lease We great are rental residents our XX% renewed in our through increases, with and XX%

us trends continued optimism. in XX% XX% of of renewal for have increases same-store rolling into give We a here The July our X.X% with a increases of in rents QX, and portfolio so X%. QX the trend replacement average lot our increase in portfolio average blended strong

renewals and increased on patterns replacement and Minneapolis Both with XX% lease rents X accelerating, portfolio X.X%. Rise gross initiatives. growth to Our X.X% has Denver are an Year-to-date results the new through program, through target area Minneapolis is the historic By and our renewal Minneapolis increased is and XX.X% renovations slowed of is XX, NOI returned growth experience margin averaging our Denver delivered and unit drive renovated our XXX June lease traffic customer and progress common portfolio, ROI $XXX enhance $X we XX.X%. quarter, In to and lease premium, In and value-add realizing levels value-add achieving COVID July. markets our in not unit July. margin Denver units, in component July of of our over Through that these million spending a per of One renovations. approximate strong growth. second we XX%. our our approximately the seek X.X%

management property Mark underway our system. As on we're mentioned, implementation new also software of the

new We And efficiency homes discuss our and and keep and $XXX,XXX top are into teams. market working a our pilot day by additional investments creating overall acceleration we high customer hard communities leverage traffic, to results. positive are They're John expecting to mind QX live efforts. related now, in results. to the I'll out for across communities are lease our enhancements seen summer I'm we and nonrecurring in fully grateful their expense our portfolio. The expense for commitment $XXX,XXX, and expect rolled year-end. to the set nonrecurring in to have our the year-end finish to was by ask rates stage vibrant transition. of implementation continuing every experience making this great financial for busy These retention The further with be

John Kirchmann

increase Anne. share, Last we a June ending reported for increased you, night, increase an primarily X.X% offset The by interest attributed higher FFO from quarter and to per or count. is the core quarter $X.XX share XXXX. expense higher Thank XXXX, of $X.XX of the second NOI, of XX,

expenses. Looking general at and administrative our

the XXXX of or $X performance-based increase the by increase management and and implementation filling the costs prior $XXX,XXX newly increased million utilizing performance or technology as for of recurring that is from period positions June had $XXX,XXX For in XXXX, by as of approximately XX, versus for initiatives. the in cost $X.X $X.X $XXX,XXX for compensation, to open increase care same nonrecurring May XXXX XX% $XXX,XXX XXXX XXXX prior of Property year. $X.X prior the the attributed been timing year. driven to result in compensation the The of performance-based the X The from period G&A costs compensation XX%. million plan in incentive since is increases the to as options comes technology ended XX% expenses XXXX. the as XXXX current grants accounting initiatives grants a health to same in which of well the of stock higher costs long-term well left the $X.X of as million expenses primarily occurring related months long-term reduced million implemented of million in year January from year compared compensation increased The

year-to-date addition, of costs In implementation management nonrecurring includes $XXX,XXX. tech property expense

capital expected CapEx to year spend expenditures, $XXX same-store is per unit. to Moving to full $XXX be

been guidance has from dispositions. earlier forecast to reduced CapEx same-store of Our impact the due

of of utilized results growth, we prepayment business, outlook issuing $XX financial will shares our under to and earnings X% In per normal we XXXX, quarterly costs, to our ATM capital to During is common quarter, fund full S-XX Pointe course fueled share and year supplemental. of well acquisition XXX,XXX for of the anticipated with new related $X.XX. draws in transaction our mezzanine presented Union million. With proceeds we portion In accelerated proceeds ATM, our a second strong our fees lending conjunction we later FFO release, as midpoint the revised These this core KMS rent for used by the increased a transaction. were as file net the program which the by for month. fully

an and also impact the year. with of guidance operator to team for growth. guidance the dispositions. growth outlook increased has year-to-date to over revenues for thank I due work year results, improving We to strong our same-store will fundamentals been prior our increased for their And expense on that, full The and improved the it make financial positive for Same-store our NOI back year have has rest to day of the dedicated would I turn with residents. every from questions. like better

Operator

from Capital first Kim John with comes Instructions] [Operator question BMO Our Markets.

John Kim

I wondering what either other lease Anne prepared remarks, in leading in will you? that in Denver and underperforming But your be mentioned, markets think are rates new or XX% was the charge. outperforming July average increase for you I

Anne Olson

Yes.

which of for that rates. what lease average overall July in just is rate, new Denver of the is, was So our main right I'd kind for the say, the

July, in new line We outperformance Rapid dramatic continue Denver. and came lease the in really market our overall, right market. in with to City Billings pretty in But rates, see

John Kim

in And I see that of How how think, flat changing your expiring, third quarter. think quarter? the occupancy leases second couple trending see occupancy do over next you of and the mentioned in I has XX% you you had, you do portfolio months? the

Anne Olson

have end range quarter. lease low being the to performance, occupancy In tight rates will noted, XX.X revenue. big as able with little we quarters. of a been we in last lease XX% XX.X%, with the push as line expirations X this chunk to that I dip within is really try those our Yes. optimize historical bit think new a a pretty But occupancy over our that we and keep

lease occupancy to And optimistic new going that growing is strong. to take rates. we're of optimize the our revenue So really, goal stay and is advantage those

John Kim

opportunities And some out question Mark, then think final your lost acquisition you of my some were you you I is, Okay. on markets. -- in mentioned

ability acquisitions? in improve, continues on Does up is more of your capital the provide And stock we of more activity half XX% last the to Given or over should price be the month. cost second execute your year? anticipate it to increased aggressive

Mark Decker

run Certainly, capital. of has the cost this recent improved

say would stops competitive. overall. more little a the -- very we we're -- sort are us it of we for the makes is I ends when does being accretive that mean, us where competitive. So I to where But world

a for about that. sure. mathematics will little disciplined be these help and So bit we'll

Operator

with The National is next question Gaurav Securities. Mehta from

Gaurav Mehta

color provide some pricing could hoping and acquisition, And came was you TMS acquisition? what if of about that I about. that like provide And maybe you how did on some color valuation more the on the that acquisition? your

Mark Decker

Gaurav.

dialogue. So that acquisition about really of X came years out of

we're Board, professional to I golfers our time. working always And most more we lose as joked So I the mean, players, like like dialogues than we're baseball meaning, of this.

a liquidity And to situation looking and protection. tax seller contributor. a so really for was They're a not provide we who this really was solution where had a

wants more just often as cash. were partners can he bills. case So that can to we understand understand I a it's and would cash meet They that I mean, tax had him seller say the they able for asks several and

this a through very who's a to X-way all have my discerning pull to So seller to way the of close, willing like judgment, to value have discussion. have have in kind a relative you really dialogue a

our taking he's So equity.

as Candidly, of when the what agree to have as what is happened had a as view soon is, December. then on we we did price we agree his that very in seller. So price our different the world on

on at worth worthwhile we X-way what what on worth. relative discussion his arrived was tax overall protection so was price company And we the a based thought was our

good energy work. his business for was And place line. kind for team a and life's also a stick spent him forward is years, to and important of steward has lot to have this the who So running a to wanted this happen. it gentleman XX to been where so to But get that his him a of have for considerations This the lot that for important very we've was to time to of to team we've it around carry land. making -- finish

It people. it his was In LPs really, years. partners. They've about partners. So some been third accommodating cases, their the was XX about gen for

original the to talking now partners we're So grandchild.

side. is, here. a transaction, and the complexity amount mean, to of lot there's I'd we're we'll a lot on take it I We'll going of seller it So Because say, from it goes any -- a here really, sophistication, pitch in hey, but from fair here. into run the

that they, that were made a see You're of participate management things be the investments the a they helpful in There will agree to going number of revenue number think, and upside. technology that I we're doing we've operating practices.

us But I'll It's finish these stop it. you questions discussion, really win unless So for have but I to there usually guess this for have reasons, the be more one. to variety line and pleased of They very always about work close for the a a going. we partners. long and KMS big team don't with

Gaurav Mehta

color. No, Great. helpful that's very

some you the there, on on you're maybe handle tertiary rates hoping seeing if question in market could was seeing Second provide your secondary in I you're color cap market. markets? that some those transaction on what and the

Mark Decker

those the just markets Yes. when relevant. ton there And with is a of may be there's issue not not they transactions. I are, mean,

sets sells, So say a we wouldn't we have is seen I X quite But I if aggressive. collection mean, market. Bismarck much. in seen haven't that what

we Rochester of point we sale, I anecdotal, So secondary mean assets. rate on your no powerful. matter data dollar quite sub-X on what our reasonably staple as saw recent outside government old lend XX cash the we a sold of is real where for where, cap about, a sub-X that's talk and if often flow most our for trailing market, equally was the they

Operator

Janney. Rob next The is with from Stevenson question

Rob Stevenson

to assets in Yes. the Minneapolis and -- to you post is I of transaction that? exposure closing or NOI selling go KMS Minnesota or what on plan what in the some is mean, Mark, reduce Minneapolis

Mark Decker

Rochester. Cities listen, it go -- to say think flow Cloud for pretty But we -- and answer We like to capital will Twin And have and as we'll go XX% think push right bit of, always mean, a you the the will and be St. represents we'll around growth. in portfolio I whole about opportunity sales. Twin XX% add to portfolio the probably I'll consider strong the tipping I a question Minnesota candidly, for the cash Cities, -- we really when

say, everything. someone the expect actively which would really shouldn't I unless buy you see got in price wanders selling into being, time for office us in So Minneapolis, with for now some to capital, things case, we've our it undisciplined to

Rob Stevenson

implies a trying remodel on much KMS these the the days kitchen and like point? rehabs then get of stuff these to redevelopment $XX,XXX And unit. either current costs this Okay. of sort or normal how a the you properties feel bath $XX What million at your construction running beyond given need warrant scope is something for typical

Mark Decker

Yes.

So that those would -- call value-add dollars. dollar dollars not I

property that capital call would I or So improvement. deferred general

which gear the in a I keeping lot think past think, would I market of but types that to portfolio. really for kind believe be of will with get homes based There we kind but up about. of of gotten add pipeline, value everything to that haven't million of top, tip $XX is top value-add the that capital. having we we those is you Joneses able embedded a should that, really of talked think on be specific to the

Rob Stevenson

same why position now, there out you knocking big Is a you later you another that wouldn't the capital you'd it unless do back time have, reason do given acquisition? it just on versus do stuff especially and come at the that

Mark Decker

out. to is that answer Yes. we've capital we ourselves years X put given Short may. I mean,

X owner private So safety. capital. I these been kind they've gotten well of I are every fire life run nothing and that's properties who They've mean probably mean, a critical years, when there's refis by run.

capital to... to want But up opportunity, Anne now. you So there do some I think, to is bring just

Anne Olson

Yes.

on are. of going kind add approach we're the renovations. add what in all considering And we're is communities their to Mark rent But But looking time does have those value we we've and and we will way the for the take years a million, lease get the Minneapolis. revenue to which of happen our of platform, as because underwrite. the really may exhausted on at where that the be in add, value-add during the few may XX,XXX those really other market indicated, be our through once and full And I'd the renovation some a in unit spend, say on the XX,XXX try would concurrently. And opportunities. operations, we'll that But approach the is kind rents things And rents platform, take at value role. over typically, be to a that today get time, will to that in-place really start that us it's if not to we to true future. of it stage here just see the value So take to first their want looking happen the $XX we deploy underwrite for and we the we'll setting looking potential then value of unit some way year to then the

Mark Decker

like And everything the we mean, real to bring really as kind Yes. opportunity that's Rob, XXXX. is forward. this to expand I just at just briefly, IRT circa look of

push feels buy the able bit familiar thing of not very something sense, feels to initiatives may best little us. not have being in good a time makes X may a really sense the us So day to to saddle and given in of be bunch that to that or and on that it

Rob Stevenson

some terms Robs, age here, cetera, of quirky use locations for in submeter included either the they're cetera, communities to expenses, or et or of the inability terms of anything the the in heat water, et being there the Is given that in of in?

Mark Decker

No.

Anne Olson

No.

Rob Stevenson

one last words, last for other lowest when me. then of And was depth effective the In leasing for you max Anne, Okay. rent. concessions, new year?

year-over-year to easier start are your what are for they easier comps what more then year, month you? when to as difficult this this curious get and year, So

Anne Olson

Yes.

we but concessions. rates. last We have probably big low year I saw we some that front with July renewals think us, to very not were toughest month -- of flat. exactly our in really traffic we respect were new lease declines our and of -- in was had pretty some don't We that our very, holding

pushing rents think was bit I little So September. it in seeing a got better the and some renewals It August. July. in stabilization come started We

Operator

is Next Santos Sandler. Daniel question Piper from with

Daniel Santos

-- one, first mind. maybe, Anne, office. probably It's my guys respond. properties if of is So your variant, sort guess, on or as were relative And Obviously, the sort say differently. affected state But market last local seeing about everyone's any year, the reacting the you zoom are ground they which to a you you are Delta were of They bit, I aren't slow economies? out impact the as you. governments the to this on for is in

same just curious year? I'm that's this if to So the see still

Anne Olson

actually provided variant. just morning our We Yes. Delta team update with on this an the

So good timing.

CDC any or any places kind guidance on don't has any in masks wearing new just of right We of We where what variant. the or operate now transmission from cases about rates our response But high there haven't place transmission number public a rates. Delta is high the state high is of that local reiterating seen governments. beyond

one we're areas or governments the very we're nimble. any year could the at put of thing where the that is operating I we're So yet, last responding needed watching in place put to rates. -- procedures We of and -- mean, still any transmission seen we that date, in high of in place But protocols after sure aren't haven't our to closely. back be we we're prepared assets.

Daniel Santos

coastal lifted in to Is been of the tenants they helpful. sort portfolio? -- versus missed moratoriums That's is or that markets, going And how rent average on the months up I catch lifted, rent the when they $X,XXX are in remaining yet $X,XXX Minnesota. in then, it's rent, Okay. you to of the sense tenant that if a mentioned in guess, portfolio? think your your are specifically, of up your a more harder and $X,XXX eviction ask stay behind to few the sort about catch and try you because lot if I few haven't

Anne Olson

Yes.

going we're bit think I rolls off. of mixture have as a a to that it little

we That's to where of for residents and other and they for But pay some encouraged income here, have the they place Minnesota take in didn't forward. programs are both going Minnesota. outcome is -- optimistic help to see and in traction some that the of for the then that year stay are to their is The to and the and/or programs collect XX-XX rent and to help extent ways solution been here actually that other that a are So the and But the markets their will pay something probably, else. starting and rent afford best who behind think housing able to forward for with those stabilized the residents probably we're they're pocket has suitable can't I that best kind get us launched to our to in in if, make they and rent the the it is able we're rent to us in. going the payments the we've continue XX% fact, the income assistance and rent and case if they be it. do stay -- will find help about -- in for some. able people once move stay operator an as And it's that's then on and other and

Daniel Santos

target about last seeing sense better me, for that One that a is you sort you if pencil aging second for one B- helpful. B forward, assets product the to can. them, your we'll acquisitions buy, That's going potential maybe going to are you'll Okay. call think you're might kind or that I B+, to When improve maybe of opportunities just owner? or of

Mark Decker

how really in just so I much Union we it value-add, Pointe looking a relative We're asset, judgment, funds relative I'm -- would of our live they missing a pre-stabilized unwilling one than Daniel, risk a risk our lease, see And compression business it's been bit add been durable The found, historically I so value models. stabilized come has pricing more appetite deal. has lot to advance, doing the with deal them. a just Where to where be a up not is not in up that's That's their and mean, plan again, a return and we're And then our good X% asset example, plan by bidder or going and bias a far. there's there. to turn I we've But the in more been dollars those power are going where business found of good into interesting towards there. new get don't because, lot newly is that answer Excel winning is can the the not knobs our there's lot mean, X% They're a ourselves with for underwriting have the that. little for their typically because submarket. -- away. and for we come believe B in oriented in honestly to been and is from they're to best value take we've the in changing mean, submarkets. Yes. that also is I faulting best working right with a go

Operator

Buck Horne is Raymond question from with The James. next

Buck Horne

cap And the discussion. that that market shift be price we've other is the potentially points in types might cash in near to that do the at appreciate I point, and or given just this compression seen penciling flow of geographies term? the on feasible your rates? capital you market Nashville is Curious And area surging anything into start accretive? other focus around into thoughts just

Mark Decker

shareholders the forward. Nashville X and was there couple would data, side, I reasons, who frankly, else It an Nashville has the Listen, things. tax, other we not on multi over We close strategy It to available months. come actually on months bunch say, and a listen, say, some across there's avoiding really more we're is beginning been the amount around markets. I everywhere push say, we're going is markets. in like case a don't yields of in well, decision. great the of few but based for shareholders been going on last generally taxes lot in the the were a to and we've are slow forward. Yes. pricing chasing understanding X and it And a is some we product that really year really mean, awesome, bright a enormous that -- of don't what of of strategic and be in. have But hot capital was deals case just is It's it's change also the -- the

I or So IRRs the in should at in last cap Nashville. -- a rate sold really of deal to we XX-year say, kind that really similar sub-X I and seeing many many liked what liked we're

the going we're something and So do we is is do if rate that that looking we'll and of Nashville at I In to market assets cap consider the And we'd find our X data. generally submarkets. at when returns, and markets. can love piece those say in in would we growth And meets markets in efficient short pretty pricing something it.

Buck Horne

bit enjoy working, shift long-term kind of indicate of huge little a survey speaking back-to-office to into lot remote the to just lot also a recently, population shift growth, certainly a of there's have seems markets. of and slowed seems But certainly, but the secondary been Okay. work workers a

Billings capital an secular markets seeing around other Billings example the assets your in moment at that shift to You're change you of obviously, a your maybe live, Does how in places. and finding pause reallocating change think, give mix? some in want few to to as kind secondary people portfolio or I in that that,

Mark Decker

listen, if Yes. of comes our up we markets, one in at I generally something it. look mean secondary

is So you we're West smaller catching that at should NOI, City Billings and kind Mountain Billings Rapid comes where the The much of are of that XX% and metros. love about say lot is City like and they're which now And portfolio, active. looking up thing obviously, we I'll our a Southeast, migration. about the know we're whole that that Rapid of anything

creation, move a driver market. goes as we is our What being market in-migration of is in or in long-term great pricing what with apartment in and really of the housing seen way. a bit new of little Denver that's same long amount robustness judgment haven't a and multifamily So the job

all have we together. things balance So those to

Operator

question next Baird. Amanda is with Sweitzer The Instructions] [Operator from

Amanda Sweitzer

a you're I broader had rate of assuming few your moving questions cap in the on and you've start, both assumption KMS fundamental pricing terms some of update on the for to strength what has within pieces I can you guidance. seen. and given today an increased timing? assume guidance provide acquisition of Kind just that the

Mark Decker

haven't ahead NOI KMS and mean that's They I We're gotten are I of grown. the the or that to aren't I and embedded talked and February. is in integrating candidly, would loss of as underwrote underwriting rates that. capital. I the mean, in cap part was after scientific on kind be we've generally XXX for we of up will plus really a that members to X% Yes. their about our budgets, one we lease, mean, of portfolio X% it. things the say their we believe But team team the thing. picking focused was reasonable about about was minus going that in agreed same budgets

And focus so getting on team team. ourselves to that getting onboard that has or really prepared been our

integration know what I mean of know. better. we of because there's which no detailed. need me is that, has that. But have Yardi to worse that alongside expected. complexity lot for of a go that's all it's We that to now, a lot a those frankly, It's in probably very with we right work let on is don't pretty And meetings they're they than significant going we

Amanda Sweitzer

it. Got

is assumed your that So the through for deal, though, guidance, midway fair to assume third timing it of in in what's it? in or terms quarter embedded

Mark Decker

September a that's that. X going there's point, to that this for is scheduled track our I We're date. date. lot mean, at close -- on

Amanda Sweitzer

where renewal And are half Okay. are your rates going then, of out lease guidance? That's rates assuming the helpful. what And you blended year the in second in today?

Mark Decker

can that? Anne, talk about you

Anne Olson

Yes.

Our today in X.X sorry, July renewal X.X%. rates -- were

going then, for John, guidance, A that, are than out where our assuming on I forecast think. that's we today. little bit So the what renewals And less there? side are

John Kirchmann

X%, is That's wrong and loss our Well, to we rent that we I roll rents actually our way Amanda, rent Anne, the embedded the right? roll. use that's in if lease here. me I'm forecast think, Correct

Anne Olson

Right.

[indiscernible]. last So lease

John Kirchmann

July. in X%

those the lease. goals The would to every rents using substantial. forecast real unit. rent the is we by that what growth future And region. is done load have way we're we loss driver by forecasted So they're we the of vary in then market into not the But

we've been months. XX% lease it's rates new over last to XX% getting few So that the the

Amanda Sweitzer

I I you're was Okay. That's effective period? Anne increase on renewal rate And about, renewal that today out rate are for where rates July? in that asking guess going was helpful. that increases future talking

Anne Olson

That were in those the July. are effective rates that

of days to but have priced respect XX is went XX been those advance what with renewals, the July that, expirations. So would on effective in that to

Amanda Sweitzer

range? impact. Got your on on your on Rochester the NOI it. then, those guidance. expense one of I And impact last John, What same-store heard commentary, growth was growth distributions the

John Kirchmann

Yes.

NOI, look guidance the of XXXX at our before So of that amount in sold months in the I million present would way represented we Rochester NOI the had X.X actually we our the sold basically it. $X.X we books the guidance,

would assumption time came So So been a we of out representation NOI. right? to know fair how out, We point Is don't what what has forecast the use. would NOI that the exactly reasonable Amanda? out But that's a helpful, at measure of extrapolating be of of updated. because be that not that it, the came that the

Amanda Sweitzer

$X.X the I then me. And from for can final extrapolate million. question

in were during strategically or rates, that cloud quarter, that did pushing the you impacted there in a market other larger that decline you in occupancy? response the to Was play market. dynamics first Just see that occupancy in

Anne Olson

Yes.

bit on value-add little a well. Cloud the as it's St. work So going market in of

value-add off of So rates some the we that is there kick bit vacancy have pushing we little as it And market. in a of really, then projects. the value-add

into that So typically we the a here quarter. trend and coming see third -- is

Operator

next is with Barry The Oxford question Colliers. from

Barry Colliers

but rates relation rental the in you are of markets your you climbing guys not this, off, the increases, rent if to about vacancy X burning think, your kind think portfolio, not necessarily you up help rates when to think have when because Mark, do or about necessarily that you to the creep will programs and of how that? be because figuring system months in going But the vacancy are from in maybe software now? that out come to as as into far X, moratorium future

Anne Olson

Yes.

closely. haven't that pretty leases. on they're for of XX think I example, we figured for watching we've that month-to-month ways been And who, in is months, really that paid the individuals one the

feel we our leases as compared good of about whole. and percentage we -- -- So have really month-to-month the to

do And is of it. that percentage are month. as of we're those how seen -- assistance would that do that of point, at So like eviction anything burn way leave the rates We few watching to we making give have month-to-month much at been place. be rates. to number a managing the on one we're help those it strong. kind will not have the a if site don't month-to-month managing the us move end monitoring the could to to we're people residents it that at leases, there each a this and I while and our our were But dramatic think and -- closely lease all rent we moratorium overall in Everyone people and whole help on it's But stay that. off, of sure enough yet really is along impact collections

at that when And exposure. look in so factor we we

Mark Decker

Barry, we're over just I I'll Yes. housed. a make not mean, macro comment,

vacancy So I plus $XXX imagine, I think at that in $X,XXX, which markets. or we're it's especially down, $X,XXX. supply minus amount our of I most north to point, of price mean, moving to the materially most mean, $XXX is hard

Barry Colliers

Okay.

your you you of of foresee that something So back rent wouldn't off would cause kind to assumptions?

Mark Decker

No.

Operator

like closing the Decker to would conference This any turn over concludes Mark remarks. back to our for question-and-answer session. I

Mark Decker

for Thanks, to Centerspace, your and you everybody, next look interest to time quarter. forward in and we thanks, talking and Gary,

Operator

The concluded. presentation. has attending today's conference Thank you now for

now disconnect. You may

Centerspace (CSR) 3 Aug 212021 Q2 Earnings call transcript