EQR - Earnings call transcript Q4 2017

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Operator

Thank you for standing by. Good day and welcome to the Equity Residential 4Q 2017 Earnings Call. Today's conference is being recorded. At this time I'd like to turn the call over to Marty McKenna. Please go ahead.

Marty McKenna

you. Thank thank XXXX us XXXX. results and Residential's discuss for year full and you morning to joining Equity Good outlook for

company featured during Operating the subsequent David David risks assumes are Please statements These be law. statements our speakers within subject and President certain forward-looking Officer. call Our CEO; matters may that Neithercut. or and uncertainties. forward-looking economic these the untrue The now obligation the discussed Chief that federal securities Neithercut, David Financial turn supplement no to Santee, conference are over and meaning Officer; update our events. Chief of advised to become Mark this Parrell, certain our to I'll today call statements constitute because And of

David Neithercut

Good everybody. for for joining Marty. you, you morning us Thank call. today's Thank

are for results of year. and to XXXX high have original that expectations We delivered end operating the the for our at financial pleased were

and performance quite trend markets, that were supply years had in conditions, power downturn. the driven to so, we to obviously go we demand of impact our case Now things for as us level much pricing as to stayed that’s the year above across last levels exactly of Naturally been it which the extremely absolute we pretty every because new to happened. about cautious, elevated our what achieve best landlords one begun performance the a emerged market for several right and required year began supply lot favorable of had had XXXX, of do from by ending

certainly supply to the several our expectations. and slowed impact growth of compared as while years, us new to mitigate factors outperform original this allowed However, prior revenue

of be there lows to living our to First is resilient and markets, by for wage ignited which growth keenly -- has and the demand and aware, unemployment dormant an recovery. record that apartment employment had driven very which economy, urban highly continue much in suburban powered expanding been is clearly walkable as deep for very is everyone

As the properties, our David and teams on in across relentless more teams. our our explain and our and in property detail for the XXXX factor focus management our a was that moment, will operational residence success by in our everyone supports Santee just enterprise else prospects, second those

a providing was performance to to and XXXX our of the and proud Our detail. result out and mall. done enterprise the give extremely was working remarkable well sweating residents team, shout everyone, a job one I'm as hardy the This very every across to honored service

our successes the However, XXXX we of bring all get don’t more same. well, know these as to because celebrate will for long, too too teams

continue to will and New across supply rates, delivered will be to our continue which pressure new occupancy retention. lease markets,

extremely expansion, demand high and strong. be further capital good wages, and continue corporate point question very quality no business. economic signals corporate that for is companies cuts will to the Fortunately encouraging are to the increase continue signs properties which apartment very, There to grow for to all tax continue earnings rental to our deploy are

count on in continue country their be will won’t our unable Parrell, various Mark David? year, earnings assumption that cost or this expect some New increase results optimum single-family the being and a afford give XXXX then but operating highest across wages It EQR at will in to the money after-tax residents Santee of homes easy, continue Our results, to result now cost which into will see single-family to deliver rise levels on we of our high and and markets. new the to still disinterested go act, in can our David pockets, color their more support will while our housing And perform the the already guidance. have XXXX. expenses, market, more guidance tax and in the perform to for teams high detail Year. as at markets of you how

David Santee

did that environment markets, like our our customer below in to and Thank that levels year X.X% across are which our our scores, deliver Good over the guidance choices, aware levels XXXX, our for out you, end we growth, they years. we remain at our confident improve when original of also morning, before the that beyond company. like to go expense They while the new scores our guidance. to ago, our In of to this able employee the of in teams achieving above and They engagement XXXX. of employee teams I would a efforts, our growth turnover rate above-average seeing these supply David. also despite one, deliver revenue increased at turnover us renewal of did that but supply those was resident in know we and told while, loyalty you all continued were guidance laid lowest keenly of of many growth our And property this the everyone. which our have recognize last couple us, I'd customers the peak high-end allowed history came and keep to new A have well challenges XX% XXX% and I decline. bottom

once to desire upon year be called the deliver supply. as another and elevated our culture best in XXXX, again face will of wining Our we

key operating be on our button strategy focus And and market Hit similar very discipline a that revenue employees. simple. XXXX. deliver drivers retain ability keep very XXXX results X,XXX are Renew the laser is to in with customers replay and and combined to our will our the so pricing

see what make into how basis. in focus lease get growth up markets, the to deliveries renewal impact or same discuss comments markets geographic them our on together I’ll expected to Now forecast us based a much expect that footprint. new our of the to on and moving assumptions the little my percent rates, growth on rates of full-year we include and the color we the store market-by-market achieved provide also that today on full-year on our guidance. the contribution These revenue and the new midpoint I'll

and have positive York, So I impact most will revenue and with with New a XXXX will growth which the markets negative impact. to our to we expect up have start finish the

average our to resident reforms about make York, average be saving appear annually about the and Before expensive. I New while marginally look plan, the couple get in will to tax conclusions and the specific tax too new California of make annually. to reform, note homeownership it’s Also any impact markets, married a the map new of our our both $X,XXX single $X,XXX more impact early about the on

renewal X.XX% which to wide growth with Angeles, which than which our produced Los growth. expectation. was produce there better on in our revenue We approximately First, XXXX, gains expected XX% growth than new about lower Los X.X% In expected year revenue in from original contribute leases. and Angeles of for XXXX, expect revenue offset growth, line portfolio the we got of

City estimated of by others to for With to both on have help well the deliveries. all in larger West taken be national chunks of office see should Amazon, strong expected economy improved firing the is LA drive [ph] Apple bode cylinders, new downtown absorption appearing growth and in Announcements XXXX, Cargo XX,XXX again and LA. space job which

to not two what growth contributing was to takes we total and demand here submarkets. strong gain portfolio. for renewal better however revenue see versus spread thought we deliveries, With the XXXX, see expected, North, across to XX the will we suburbs growth. start the East again rate and on a at has the submarkets on West the are new solid be favorable be revenue deliveries new positioned XX% all price same X.X% to In lease good basis XXXX, very and geographic XX% will but LA, number Downtown, In up similarly than our Very strongest XXXX, the these X.X% expected better higher occupancy, supply. past with and [indiscernible] as XXXX year. supply beyond was The growth of footprint, new could mismatch forecasting Francisco growth, new bulk virtually in and than the Francisco much point of produced with San renewal ground proved our we’ll San growth, which happen. no appears existing Koreatown through of Glendale us much par position points. the

Peninsula With the the points that Bay the the encouraging for expansion potential deliveries as new tax year, front Jose year upside. corporate to last San versus Francisco very most are XX tech has and plan market basis taking in surprise South many loaded the announcements better we and hold, absorption. by solid of With the current occupancy to checkmark for San maintaining

produced the versus the occupancy with revenue versus year absorption leases renewals driven XXXX, Seattle, Our expected where both in up XXXX full for to by growth negative forecast. growth X.X% forecast candidly in supply, revenue new On renewals XXXX. the and X.XX% XXXX. new growth this growth we of on has flat at in market of saw this producing X.X% good market be the better and than We [ph] in XXXX XX.X%, cautious for approximately perform X.X% new X.X% leases

at But HQX. as strong elevated of in lowest moderation In cautious Seattle rent the mostly hitting contributor the ramp since XXXX, submarkets of years supply a to rumors by embedded freeze urban Amazon openings of be job announcement more XX%, as and up. Now in we the concentrated largest new number at driven QX we result XXXX will in play our our X,XXX. growth level of in of appear third at the growth of persistent hiring XXXX lease out with to the are start and all the their

rebounded yet last consistent demand jobs recent and be good have week. weeks average, and our notable the achieved X.XX% as or top however, said, Occupancy but over of been exposure produce for week are that to however in revenue has recent on of is X,XXX remains. XXXX growth lease the open X.X% As week for in to last last we market year. growth year forecast this With versus moderation ramp new is to

the the growth up we’re growth growth was revenue budgeting that not We The With X.X% Washington federal of the up outsize XX we’re that almost a demand, did XX,XXX or DC flat achieved occupancy produced X.X% X.X%. rates. the necessary renewals to expected, of versus our this metro makes averages. new in Corridor only basis which XXXX. will of economy growth. XXXX slightly a portfolio points, to market the XXXX our concentrations holding be For pressure see growth year. of uncertainty much in is rent revenue will expectations rental growth the growing The lease level little new Alexandria beat that to Riverfront flat, meet to sector supply XXXX conditions our some absorb in revenue rents of With units as variable DC is XXXX the sufficient in political year and Central continued in not continue up by in contribute new creates In of DC closer in to early at Nomad, government, in new need negative the private third fuel DC expected to the of lease submarkets activity our to stability in improvement only full XX% year the deliveries environment the will the is as slowed RBC long-term economic to achieve district market add the should new that and footprint. the caused and

revenue growth XXXX for X%. is expectation Our of

negative as on at occupancy negative our XX.X, We XXXX to and impact with moving swaps with in space, pricing many expectations. to did contribute greater softness growth our of gain in produced Boston some last of will firms up In in offset expected than biotech of continues as XXXX year alone, Cambridge. down new occupancy, increase be as revenue X.X% and we renewals will units office revenue across good X.X% renewals slight rates. to large continue improvement Good the will better to deliver the Cambridge of well Cambridge to in a absorption metro XXXX. the front are X,XXX abundant and XXXX on leases. and continue submarkets power expect flat large have to a new be deliveries City growth the new X,XXX take technology to paying at we XXXX. relocating headquarters. support realized spread be like rates X.X% should in is in with see expected versus slight All like loaded Boston line news In Boston and lease to The same we same back companies loaded, Phillips minimal while XX% X% as which expect told which Boston We who high jobs

We X.X% in XXXX. market of delivered it produce to expect similar revenue year what growth this this to

XXXX improvement in loaded. quarters, led growth new markets. next produce Both our Diego at County County X.X% slight of lease new increase an deliveries XXXX. will of that four come to best markets. each. hold Forecast these will respectively. they revenue growth in NOI slightly in minus XX.X%, across gains renewal but overall San marginal than our front see that growth, and minus size renewals the evenly Again way and will X% X% occupancy X,XXX should Orange with reduction years two least are Diego flat up good X.X% revenue In their contribute of for XXXX X.X% a Orange the less versus to at XXXX will see deliveries had while due delivering online than X.X% growth in expected and occupancy very better San smallest are XXXX in

New coupled in steady be prices to to family easily deliveries home two disruption, allow trend these demand above achieve supply revenue job increase growth. absorbed fuel continues excess pricing markets with of that should average absolute without term in single growth in

forecast deliver markets County X% XXXX. respectively. X.X% and XX.X% in renewals up with markets both to are expect both X.X% growth Orange Diego for We for revenue San and Occupancy

growth confessions than the this and use Driving closing as growth Big revenue then better as X.X% by points. expected lease well X.X% our expected a And be renewal to New respectively. Apple, with XX and XXXX of by basis expectations growth market in of occupancy. expected less than producing exceeded is

Brooklyn. be approximately is in Island to our continue the supply we of supply showed the in continue with Long footprint. XXXX pleased XXXX, that this and XX,XXX in In market competitive We and to discipline this market very today. that new deliver pricing City XX% see units elevated will

on into downtown Island and the Brooklyn New almost Island year neighborhood value, in of deliveries With be more XX% City first XXXX we short only demand partners. risk that growth seeking in X,XXX X,XXX Island from a counted Gramercy below X,XXX far continue new and to on Manhattan. more As another the West a we've separately see in for Long lenders for potential destination The is pricing supply Manhattan one to Brooklyn. while levels, than discussed in yet sub burrow New begin in desirable concessions for peak for the York. year new risk with level come previously unknown York units will in and new City Long the Manhattan a of completely over transformed. online the cannot has meaningful of City great online Manhattan total we at around is new X,XXX a attract Hudson away. bleed little train Waterfront XXXX only supply with City Long expected to into half increasing new East is life. Jersey has X,XXX new a downtown behind see the in forecast stop is market are we and X,XXX has A units Brooklyn, will XX% quantify. units to X,XXX grew X,XXX. of be night location amenities its will rent it risk in discount and Williamsburg. to that cautious developed Brooklyn and XXXX Midtown for been almost But and City alone units coming job ride the

new which to revenue making which XX% in of at forecast growth. basis in revenue minus XX to X.X%, improvement points minus at to X.X% a is in negative Occupancy XXXX, were a to our XXXX and up we see XX portfolio are solid renewals economy demand this on of We that would We will our XXXX. of our with the plan to overall results we point markets thought In alleviative remains use in continue will new budgeting. regards all store new of we to produce less good very We than using and stimulus closing, in improving but we is ended wide the and begin estimate optimistic similar and Job New a customers. level of be the concession conservative very levels our expect the the be in of leases have growth XX.X%, to basis up York concessions. good. of same market contribution tax supply, XXXX will conservatism incomes amount

how shout customers our the best they in our do all and employees end of Mark? But things the right will Our out And there, can you that shareholder. and employees right. in know optimal business again button for for big things results out do there more reply our produce XXXX. do I to that and that of know some when are brightest a importantly to again our to the and out it hit

Mark Parrell

everyone. Thank morning, and this guidance same talk expense, expenditure to take I for today FFO Good our morning minutes XXXX. capital store And few normalized want you, David. about to a

Before I of want launch XXXX on I some context. X.X% same our into give some guidance X.X% detail expense range to to store

comparable Our X.X% lower expected has a full X.X% than the period expense of difficult that XXXX set up relatively versus expected year for increase store same XXXX. we

also payroll growth of XXXX, over of three driven same which five will XX% estate on-site and rate in it average utilities, real this as almost same big expenses constitute expense usually be lines, our annual expense total by modest have our growth expenses. now our is growth the together taxes, store benefited from store We to X.X% same years. past year a store Switching

XXXX, from basis XXX We points face in comp some brought On we X.X%, Jurisdictions and points expect success XXX-a the expense better to appeals is we with basis with of largest of year thought about increase than Jersey expected in back of February and lower tough now we down the an estate in York. as side, estate XXXX, tax the increase full growth had in X.XX% New that XXXX. York. XXX than tax real off coming in about rate the burn increase in the originally the X.XX% real New expected New between

our we to an anticipate which up were category an X% employees, years to all in pressure Switching we in a increase salaries, XXXX expense, up face payroll continued of X%, level very increase over X%, competitive to retain regards we had in labor market. see especially we might around recall you maintenance in For decreases expect as X% very some and both in of between XXXX, good and we X% utilities, after this in and XXXX, XXXX. we property

comp are increases We costs. a and and in gas natural now tough trash facing

So now guidance. move FFO over to normalized

portfolio range XXXX create the share stages of various XXXX $X.XX midpoint guidance per Our normalized share. the FFO of of about in of nine $X.XX for $X.XX XXXX million to per drivers properties, first, major in $XX up, $X.XX FFO. is lease our for units X,XXX about normalized normalized are to FFO totaling Comparing our our guidance, should

is results per compared XXXX, contribution or share. about incremental this an $X.XX our million to of As $XX to

a per XXXX we reduction positive this of have a $X.XX and will same $X offsetting activity. Second, impact share XXXX growth from transaction million to XXXX or our share store of expect about about in NOI and $X.XX per from be

in providing unit on million of $XX is expect million unit a at approximately of expenditures, $XXX will from And of through for negative expenditure million, while is of same negative of this to further to XXXX assumes guidance million, in year, end from double-digits. we our number. a as new development and rate projects X.X% relatively impact Also commitment about one-third which higher $XX lower unit higher dispositions related store other well an our that negative is will our items, we personnel, is to and payroll revenue store our higher where and mentioned both finally side, a expected units guidance, debt. just administrative returns general lower prepayment revenue approximately provide consist data we acquisitions and that most on-site as as cost large enhancing plan our and spend our and we million, have impact improvements projects share also retrofits, the rates because capitalized the XX% capital are estimate costs to management We’ll like we Also about we from service, approximates the then company to share per revenue. which line as interest subject on of Our total XX,XXX pressures items costs we placed low spend per property interest the expect return enhancing. our believe water relatively in backend about renovate variable Because our in program, impact $X.XX X,XXX significantly feel are on in about lighting $X.X And approximately including impacting renovation of same to the per for which of issuance and mostly loaded, I coupons, sustainability these to corporate a about activity about $X,XXX $X.XX benefit Included expense, will a produce all at loaded. are from property that $XXX return that G&A spend negatively of now had costs. conservation as that per in $XX a same while that strong cost energy front this compensation do. off-site as million we management are in capitalized been well sustainability is

located We on facing elevated amenities, well customer competitive keep gyms delivered extremely new other markets. being assets and with in to spending will lobbies, product our also continue our like level our projects,

a decline its and should X.X% back will the as pressures of ongoing the XXXX, our proportion as some competitive the David expenditures best capital as same large Even capital company capital of revenues. of do level of one of to that revenue and capital percentage same few elevated been spending between overtime, in expect of the Over now our large slightly modestly continue rank terms the with units we last renovate on over abate. spending and we've expenditures. store years very store X% will projects group a expenditure as peer turn I call in still our spending complete We Neithercut. in

David Neithercut

Mark. spend addressing moment to in Thank want a the you, transaction activity. I just Mark development

markets a to estate demand The space assets slowing many of be lot growth sentiment be regularly for by the rising valuations across prints multifamily and despite time that multifamily continues very real to that under there interest our strong and is allocated demonstrated supporting deal revenue to all remained put across work a So rates. space. investments capital is looking to our in high

million own attendees same annual found valuations of XX the In for we time these total. be there sold Orlando and valuations fact In were our some evidence NMHC were asset five registrants of weeks in by X,XXX disposition of X,XXX realized activity. and the XXX% assets. attracted can multifamily XXX% our $XXX at meeting of stability in XXXX, the prices and assets Further our valuations more several than estimates ago internal the in

Now year, at expectations. this year. last trade we our XXX% of into in recent assets than had of as our And as to closings of will closer guidance $XXX move million January dispositions original these valuation $XXX we more thought might XXXX, million recently but get most of of October

in million we returns. an for initial full last be the total weighted funded multifamily assets cap with $XXX for at year competitive highly we a it closed if the in proceeds can year of expectation of fourth activity with And $XXX with million year, X.X%. demand Consistent result only on begin dispositions. we this XXXX, from XXXX closed we the quarter. for dilution million rate $XXX no acquisitions with activity transaction throughout on ago, a new of with accomplished average long-term And will like limited of acquisitions and higher conduct Now

development, still construction Now land appears and capital turning prices continues be with right costs strong and abundant in development around available the the right markets. Nevertheless it development rent more yields significantly for supply difficult in more to to outpace reducing becoming the remain growth deals. and growth all to sponsors is as of

of them that rest stack harder. together and is a harder putting capital the becoming For appears it

spreads, and does remain requiring Our in advance all construction To us, this more rates to and near lower fewer fewer future. up deliveries financing wider while hence at capital the adds available, support. starts but very

for work downtown resulting growth In escalate to new to then value San continue the meantime, to construction Francisco. seen that in cost we've development for remains in Since fact taking development development matter Residential we've is markets revenue opportunities XXX of acquired units continue parcels. the since for continue slow, have and to inventory. consideration. have parcel site development underwrite we at assembled down diligently a core have our new in a competency to Now that sidelines when But development yield the in of Equity the forced us create land land we we the expertise each our and in not existing XXXX land

marketplace. to where we totaling $XXX representing at X% of million to X.X% which In basis rates points yield year million targeting also we X%, started average a the on projects represents to development basis During points cap a weighted $XXX development XXX to premium completed two cost, today's projects XXX we XXX returns XXXX, cap are of XX premiums. rate in

the be the at begin Boston of all the At after and old property time, nearly largest work located unit TD present tower, the and Now to tower the billion have located approvals soon a and Garden. XX Boston site of directly from growing the XX about summer, Boston's exciting neighborhood. new because parking XX to we necessary development north Floors sites development will construction of start station views year of on currently garage and our across expect tallest in hard cost this apartment remaining extraordinarily XXX total team sometime Boston's inventory, these fantastic we the has street the representing of years this four $X in

in As underwriting the expect to our to cost XXXX I we $XXX tower of a yield said, begin a a deliver low this at of and in point demolition summer stabilized the garage million, late current sixes. sometime

midpoint pegged quickly guidance. a good spend Now questions the our FFO flow level that flow our before with policy call development the and in this very development Coming With on increasing policy the initial time. our I new elevated shareholders and reduced to the policy out and we cash off we cash the dividend the an totally under announce annualized uncertain transparent at significantly change want believe in to increase last normalized is company’s recession great forward meaningful adopted have of dividend night. we’ll open we conservative distribution a a going cash uncommitted to of this that comment use of of of opportunities

with that the for operator Q&A. to be said, happy So all call now we’ll open

Operator

take with UBS. sir. [Operator you, question we’ll our Nick from Thank Instructions] And first Yulico

Nick Yulico

in Thanks. or just And want looking to will homeownership the half with hear you’re you outlook more of you light XXXX supply think is your to soon on at comments the if just release talked second you coastal David end seeing the view in high of tunnel to I'm press impact? in it as this the to a any improve back the I the reduces. significantly where year might when had this happen of new as go about supply your markets

David Neithercut

we’ll to we look really we spillover I XXXX XXXX into Well assets of our as markets spillover. say deliveries we will others, in and XXXX kind see are do deliveries In still the in deliveries some Nick less will we but at diminishing of the in so considerably competitive beginning reduction. number of see year this with we as count have we think tunnel XXXX have zero, be XXXX deliveries we this XXXX that that But at the light see still what look be do demand landlords. should believe XXXX. the the of at not strong of see to and we going pricing power beginning to and level supply clearly that suggesting kind return very the but I'm begin continued in to elevated we’ll see supply the we will do of while time by in new end we that

Nick Yulico

or it of feels impact you’ve then of in. like delivering Brooklyn supply helpful. guidance past City least you’re little some the talked having is about that competitive City year be saying That’s now a factoring Long on bit New that the And bulk in worse is at your this could the Island York that

terms can us competitive for supply thought impacting Island Long pricing portfolio this City the in just how more you you your your perhaps of York about tell new New year? about Thanks. guidance of So Brooklyn

David Santee

long-term this quantify. At months of back. a out lot as David. is units online some move to This after is hard very City, of think, the point coming X,XXX but Long that stories, we move communities of examples of Brooklyn not But have residents said, in several choose our we outcome anecdotal I to Island to I have

in the hope So first accordingly. the it we prepared And for and picking to last half guidance the especially year the in their we and this year of are are stays elevated very going remain of that we on planned number the delivered owners certainly profit. be units to very, discipline year market

David Neithercut

seen for their a delivering meet on product their I they’re and this refinancing expectation, from expectations, guess meet their have investments their these to expectation, to I’d to be rent that going not the toe Nick meet growth forced that lot line of add developers them regional performance pricing. are that to

why expectations for the market that Now product these folks that San -- there’s few are Long in may that cushion throughout aggressive delivering the pricing XXXX. not of some saw we what I not in lot that, get of and these we that mean and them maybe very but that City Island we discipline in unlike we experienced think a of will well Francisco feel won’t doesn’t XXXX in

Nick Yulico

helpful. to follow-up that’s just -- And

sounds of in out. conservatism it like fair play pricing amount this York relative you impact to in So New how could a sacked

David Neithercut

we we’re could York year this last as saying into we’re outperformed we performance as still But going expect not conservative if we do market, be that obviously the We worst-performing our expectations, the this better. outcome an I year was will on were guess New to performing our relative. dike and we tell the I a all but worst so if that New market, there was Well holds fact maybe have New have pricing York downside. throughout York marketplace discipline is could noted than in the the crack the for reasons maybe you,

Nick Yulico

David. Thank you,

David Neithercut

Nick. very welcome, are You

Operator

America. Sanabria Bank to And Juan we'll go with of next

Juan Sanabria

the Hi, time. thanks for

better that the more Just thought XX following had point Nick’s basis in you revenue York, your didn't you up concessions said, new question I where understand same in XXXX. leases to guys New hoping I If maybe increase are XXXX. you on in here, for didn't X.X%, building see potentially build just is on store necessarily you but miss expectation a down

little York a starting XXXX? as could hoping of more assumptions was ended I New walk the that you just us understand for on just out through you bit up you're conservative why in to kind So

David Santee

summer more what a at Well, when lease the the I potentially months, these QX your in will occur. of driven think QX of come expirations end happen online, lot deliveries starting a lot into that's of could by it's

other of York that, has New is The any lowest the turnover thing market.

bigger power staying So New impact increases consequently and have have renew a in more York.

over new the turns is much lease the rent new and a lease when current difference between the the drop rent So and greater.

to saw more we are So so rent market concessions. down the think we to contagion necessary the And the in you’ll speak concessions are then regard just last see have with year. pricing with roll than should forecasted, we prepared we rolled

Juan Sanabria

at I be so versus sense Any for competitive looking this And wanted on in at comment. that at portfolio deliveries decline set your across point the follow-up point? would to this expected wide XXXX XXXX what XXXX supply initial expectations units your just

David Santee

in the on through we bias are boots would I that guess estimate XXXX ground XX% today, we’re say decline and fact. in our versus XXXX. new more definitely deliveries on a reconcile towards the based almost data XXXX numbers than But Axiometrics, showing I

David Neithercut

material most being some product. probably in so on I have all our drop where might underway and markets David pretty close take be call said, XXXX think difficult Certainly we very today. for York New to York, more fashion it's to for it significant us. over there in real consistent we a XXXX but XXXX markets. are in that and doesn’t of unlike decrease some you other months than markets are less be an a deliveries deliver closely expectation this can guys said got make Now -- to covering which But XX anything stuff as that And it’s in to be XXXX delivered in New be

Juan Sanabria

Thank you very much.

David Neithercut

welcome. You’re

Operator

with Evercore Hightower Rich to next ISI. move We’ll

Rich Hightower

good guys. Hey, morning

David Neithercut

Good morning, Rich.

Rich Hightower

questions So here. couple a

you way wait think maybe time outcomes. certainty end beginning the at supply every to helpful. want test actual out on what little guys markets have up wondering sort New was markets mean, other you the about the that I lot So look would the the playing of a less year the at meaningfully we stress to know same different to the you’ve of talking but you've in happen these on to end for the you how commentary of spent the follow-up that thanks those you comment, the bit baked envision then maybe I to a year. And range in further all do the and these very know prepared market probability the deliveries just at just some comments, in the But numbers of time with some the high some bottom for York, And of of we cases and I color end generally XXXX. guidance I'm it during to the of the if assessment of hit end range? versus to

David Neithercut

Well I'll David the the your second. part answer answer let of first question. I'll

were not defined we and product of year CO, mean talked last business their XX about next pushed look thinking I receive calls. occupancy the think the properties open opening is or very quarter it’s each And be of occurs track by us at door doesn't to that is and completions that or our at any. and change of end CFOs, data their closely actually that first the we the meaningful track able of but there A just do year. if actually back at And lot into one when when as properties we've compete the any beforehand. availability for each the because month actually in got and final So pushed as with that very, to upon final that XX based will you days actually necessarily for begin

pulse what kind we've our the competitive So the of let hand end, of I'll got us But has for on at address be David product. it it. to relates that happen low to to as

David Santee

in Well, pretty market good really we last We've you in why as a to the we way have every end, much pressure that's test, probably start mean, forecasting feel, art positive. three to strong had best the we'd referenced, is Francisco, about miss San market. we are which at in I our do and a be winds the to check But low the gut mean I the last blowing the Francisco, very I feel are kind San year a or four mark mean, the years. headlines of

that we been mean, hand I more to could properties lower is of that four there would feel we like general San the and that difficult government. located, the Relative based upon California, variables we directly what the it underperform. to where jobs. on or much years be momentum. Southern other And three the are are pressure budgets forecast I federal the Francisco has risk jobs that will feel pretty in Washington growth. to all So the but new last federal with consider of very our DC direction our related on economy, uncertainty flat above look positive it's quarter for a revenue DC to the think government the outperform,

revenue markets So not we the the is out look look far stretching and DC we when suburbs what generating are as growth risk we in at elevated you see even And when you see -- well. rest DC continued supply. have we that those see at

number would do, New about what will New City DC And it one just with downside. the variable I the very feel good probably at be risk rates comes then to So you to down more York we have York mean, concessions. is.

creates elevated lease manage As concessions new the point disciplined deliveries to and can supplies or through pricing where up across these market. contagion we increasing a it remained without

Rich Hightower

far That's specify helpful. guys an are terms earn Can overall you XXXX? of in for in where you so

David Santee

growth? embedded mean You

Rich Hightower

again? say sorry I'm that

David Santee

New thought Year? was embedded growth the what You're our sort beginning we asking about of

Rich Hightower

right. exactly that's Yes,

David Santee

points. basis XX it's portfolio the for So

Rich Hightower

Okay.

David Neithercut

Just might means, David. that what describe

David Santee

is XX basis annualized what the of roll take so month, by value. rent it for points. year on Yes, XXXX and the full that value that just divide portfolio the for that do XX/XX we roll really generates And rent the

on the revenue of growth. other XX basis assumption income equal would all you So that components points stay generate

David Neithercut

have you another Do question? you. Thank

Rich Hightower

one do I dividend. on separate Yes, the question

after share give flexible more So more to you Mark, other EQR capital return a making maybe taxable just there, in prepared including and little to compared income, then repurchases? a dividend into little about other the the us free where how flow the maybe rate, I as those think decision policy want cash the to And terms us versus comments, the this shareholder increasing color fold to and elements requirement dividend of some the of remind is can we run well, avenues you as calculation.

it's So a of… bit

David Neithercut

the change Board be So think thought the and as best share -- question that I'll for and you statistics it answer policy. I about -- that will with yes, talk maybe Mark then how maybe with I'll this those

Mark Parrell

with cash the tax start So talk policy David then flow free let's just then interject will overlay. and

something around $XXX of flow the we assuming for XXXX is run or around cash it. million So dividend the the but start me hadn’t something dividend after pardon -- with rate to increased is XXXX probably number

have additional the We we that CapEx disclosed some and in release.

another So $XX $XX million use. call that million incremental is dividend uses The up it.

of of So which about of cash to million, $XXX $XXX debt. you you that his that million of to range David to Neithercut now remarks, of the effectively excess the addition Boston reduces flow $XXX down in model $XX now of closer you the in spending our high-end because Garden that garage have million describe it's development leaves $XXX then million million, are

we're billion. $X.X we're $X in billion down to this you'll million only issuing that year, but see if $XXX debt look, So you paying

at So of repaying that and credit, our this guidance model in least line a draw is to the application the partly debt. but excess on also difference partly it's cash, of

significantly we've In terms were re-tax room. than of few We taxable distribute already the income, plenty got under rule. of more required

dividend dividend year of With sell retain over forcing without David. million the it without assets affecting can turn cash that every an we you $XXX just give to, our approximation to the higher. policy, and about So meaning I'll

David Neithercut

development on year one for which sort sharing as we Yes, to our with to forward calls opportunities uncommitted is are and the were respect so for that looking with up annual were I Giving everyone in increased with and and these beginning and our we at certainly that discussing that of conversations down same rolling elevated least last all think, levels that of of sharing with at distribution dividend with starts looking cash we conversations the time our period. our policy. all the heads XXXX, Board as have of always mind, were you of sort what where Board shareholders, cash was resulted range in or those new an this had

by that with us stock us other land. deal did or this preclude new We from anything also transactions the that that additional we've did doing that from buying excess did back, share starting so, taking with in talked like in down about else that not deals development preclude doing some didn't cash buying Boston us from not the Board preclude or doing

other explore one we best think do just any this to is still this using we we’re interest and one and our have capacity options excess it's So excess in way that to so.

Rich Hightower

Okay. comments. those Thank you for

David Neithercut

You bet Rich, you. thank

Operator

with next We'll take the Stanley. from Hill Morgan question Rich

Richard Hill

morning. good guys, Hey

still of words it a growth we XH. in of with the there think get cadence first this same been few the me a pass you could to to seems in give about has I revenue just between better mouth your as maybe half us fair half color and in bumpy roads start some supply. any improvement that? to second put about to Is more that there and want about to seems XH me questions So a and bit don’t get think want you And as I store this little and sense

Mark Parrell

Santee with good quarter then pretty move-out In mentioned. good that us into the in well year see of growth our guidance. as right, relatively comfortable the embedded It's Mark, sort that move-in the about think David activity numbers and headwinds of what talked with and and sit David details. upcoming we But and of believe this some step sort start implied Santee isn't some increased for light the and up of level from David sort of supply I'm of pretty and embedded is the We always January, as reminder just XXXX is that may and in growth. quarter. prudent growth and of came end third We XXXX the second that quite is our in you down a our in we feel contributing I here first momentum. of going on to In

quarter-over-quarter likely deal numbers be So way the in in a if you those look moved in XXXX, great is XXXX. numbers move at revenue to of our there parallelism how

utilized occupancy end But able with the year. we fewer year Now year guidance to upper revenue achieved range. hold the half and of our our if we view are very progresses, well in at concessions what the of rate kind be we or the reasonable increase of this early may can is our as up point of best

Richard Hill

Got it.

the pushing supply follow fair the really help expectation of of is for driven And question the you there XXXX coming This guidance might end out most should up low top achieve would -- be that sort of about an that you range, the in be question range where thinking achieving there’s what a range how end the part. occupancy the guidance to so I that going think supply was top but of it? was be range. by it’s that or I end we Is upfront think year the the of my about

David Neithercut

this that stuff there supply now doesn’t do the -- out second was it things not is delivered doesn’t and that when just out new there’s but on and back a and mean, open year the last quarter, turn it a this with there’s is sufficient I with these is we our supply half. belief dealing -- supply I is performance supply fact, of dealing a half track Well, and there being off, somehow sort of that year still every first we’re mean, a turn the pushed than we new better performed supply the job result we’re that because for much great with sufficient we’re with reason the pushed not there we did of it’s note a again new year. new whatever teams as product was back. pushing back There’s back back delivery the dealing of necessarily the competing supply have markets in some I got the and marketplace the pushing us. might at the that completion just of new It’s that as thought, correct. thought not that’s is not pushing the not And

Richard Hill

really that’s it, follow-up I’ll thanks Got with offline additional helpful. any questions, guys.

David Neithercut

Rich. you, Thank

Operator

next move Associates. Gilman Dennis to We’ll McGill,

Dennis McGill

that the just supply of XXXX been about clarifying earlier think think time being Actually about statement year thank Hi, have an last optimistic so similar at view pretty would XXXX you comment XXXX, have this you the when to more David, we last I peak. that would guys. had

versus stuff XXXX of How of competition of as year visible being So as different level higher XXXX time to is you at reflection delayed being weigh versus in was ago today than year? a last this a what’s it relates XXXX. much the more the in pipeline

David Neithercut

completed of reasons. was property get delayed them but street but couple forward not I it this on because available which of mean again are day last done third it’s completion its of and all I track was And is how completion the they became this issues was everybody didn’t properties this again when latter notion Yes, it’s year densities the just doors Seattle their just is or emphasize right work delay. opened simply door, When track back pushed a We of that in in to party the properties which the want the had ourselves, mean and that of the one delayed does for rent were with Francisco completion, CFO pushed delayed some back in San by their for and they properties the that for one the was these opening city, various it’s not opening final year, available get time. it own that we last gate the one doors. some on was which not lease

delayed, competitive though to it I people competitive XXXX wasn’t the about back. even thinking the in it which from So just get it was means was was stuff away want pushed

competitive really the As we the XXXX and way there up of our plus change add the in has completions review been no product. that we total at the XXXX of completions look

Dennis McGill

about competitive talked is into preliminary the look you as step side similarly from then XXXX And the side? and that the or completion down Okay. from the very actual

David Neithercut

as give but same completion the it party not we you do that the may footprint be defined you services. data same the stats would party The is would on services, third the way We side. third be the give as

Dennis McGill

Okay, perfect.

David Neithercut

Okay, product that manner we we New our with don’t at that we area -- be do believe party boundary we final look consider service I York market. look consistent is third described you as say because the impactful Metropolitan CFO draw different and But in we a which the track providers. completed to in in completions which would

Dennis McGill

missed it can and just and And quarter you that’s you second for the helpful. I if renewal do sorry then Okay, numbers the this, quarter lease any provide as the question new on then maybe thus well? relates fourth to have you. far Thank fourth as but color

David Santee

then lease was X.X% minus over for lease and renewals X.X%. QX Sure, were

David Neithercut

on rates the has wider on as new of of several you're Now often times reductions winter David re-leasing the summer. in the down in the mentioned are always sort up average, lease units versus these because those calls than

lease, pricing highest of and got the the reason where people whatever have when the their they’re we season. it us so to in giving season the lowest to in time And back peak of come the it they leased for at term

or happening have not uncommon that received. it any for does we might and or wintertime quarters in not penalty fourth also it's the in fees prepayment or delta the for that be to So first cancellation it’s when widest the account

David Santee

this And XX X.X%. and basis X.X% again closed points which up and jump me number numbers. out is on would January February February early is renewals, to you then let give far thus we another renewal January, at expect

Dennis McGill

new And the lease January? on

David Santee

track on lease month-by-month numbers don't the new a We basis.

Dennis McGill

luck. Good guys. thanks Alright,

David Neithercut

you. Thank

Operator

from question Green with We’ll take our Wagner next Conor Street Advisors.

Conor Wagner

Good morning,

David Neithercut

morning, Good Conor.

Conor Wagner

Jose could on the there, by Bay. you East Bay San three expectations submarkets and your Santee open out break David area, San the Francisco,

David Santee

should Bay, say this in let this East is Peninsula assets and year. most our Well, have that Berkeley the do of a in South me we the better portfolio Bay few

I So assets most really new our still San store. all in Francisco mean are of downtown

store, when well Peninsula we Bay, really the comments. my South should it’s you same So which think stated do in about feel I as very

Bay. influenced by would the be the So and Peninsula of South full greatly driver market

Conor Wagner

thinking HXB sense any within how you HXB area Bay what the about holders? you residents then your And and many impact of are of do forecast, are for have your

David Santee

I I they typically material year get that any the were HXBs -- measured numbers what jobs, have of impact in. we for lot really kind employees think before, We security employers move the haven't sole of that, and seen we after -- mean, mean, a $XX,XXX, employees the I from $XX,XXX the

fallout our a been proxy headlines. to of the but negative don't So the residents really is of numbers from consistent, any all number haven't kind that measure that we have seen HXB number. sole really security And

Conor Wagner

year? change to not are on anything that you this And forecast really

David Santee

the process, remained mean, actual only the -- really really big I visas unchanged in No, things. was the year this changed approval I scheme think thing last of don't that’s I number express of

think So in of more which kind I end this QX the it's what all get they to that really express $X,XXX like paying companies express approval, was about approval. approved I the believe eliminated, $X,XXX of was up versus for

Conor Wagner

that? development on with capacity that X% Nethercutt given in Mark that return do have rates mentioned received is that you million X% the rate. their and then you the cap to Thank implied to on you an David small on even annual and your you. cost a buyback above cap bid is stock trading your And you How share X.X% Parrell at $XXX attractive spread dispositions

David Neithercut

ago. think it bought these we've traded the levels your attract six at that generally or in said, we the the have AZ as management own so so embedded do in to the make the That gains you just math, lot given you and we off of know forward, stock levels on we at particularly team in just have dispositions has enough sure, sheet won't the being these the capital don’t And all impact levels. just today. believe it gains and which saying The after months have and But balance that assets we being not there's back here it past Not that the Board taxable by sense that that left we experienced taxable that about of the after don't discount that is own level at is it us a to going neutral shared at hesitate future. to today impact. we that's this sense with enterprise meaningful the and make a makes

Conor Wagner

to use million buyback of flow so the look $XXX even like attractive doesn't you? cash And free

David Neithercut

free cash perspective that's responding a of that capital. use to stock flow option capacity I There perspective certainly the more of from selling to is cash free was think is guess, buy that the back. with notion I that not flow. But assets there. of I an a lot

Conor Wagner

And how perspective?

David Neithercut

know mean, I know and let when we'll option act of we’ll it's mean, you and ahead on an we the you just act, don’t I table. let Well, time.

Conor Wagner

you. Thank

David Neithercut

last But deal one anything nor questions Boston to earlier remains us the capital. capacity increased ample That's to I commencement to cash with a we've the And for in else. in option. certainly has we the have response of do it respect from as an noted that of said an that the year that nothing this precluded demand we've having done with option

Conor Wagner

Thank you.

David Neithercut

You bet.

Operator

Bilerman we'll our And with Citi. Michael take question next from

Michael Bilerman

may And and add, value the pretty southern it's sort just Hey, much you curious markets transaction. overall been To-date that or lot been get David playing a assets. the of cap to higher scale Michael of large multifamily here, secondary has feel capital private everyone the a looking Nick. have in Bilerman attractive ROE. to assets, product, get and other and in gone rate at I'm that pretty able with money how has about equity leverage

the sale did own product think core you Starwood deal larger about do type of you that is a scale for today? that If the think capital you in there with transaction you

David Neithercut

say, not has do doesn't But That's public more and anyone can still we Starwood the add same Anyone gone that guess, than GGP hard big done capital did to I do who Starwood. more have sure some if in we with of today that private. transaction the because might sale exist done to is level they notice And who Brookfield just first I'm to space to say that to we’re Michael. think available I’d might transactions. exists company it's doesn't of hard mean as large they've the a have

say. to it's you I suggest, I believe sort pundits to for of other guess, and me tough that So, to

Michael Bilerman

up markets you're assets see I'm has that just capital is seeing whether building core wondering that most that product. been higher now of the whether product, the in buy from capital yielding because you appetite you sources more to have in targeted towards there that

whether didn't know there… this As

David Neithercut

very core I are of of products print think think strong we for most there investments certainly products. Xs and one-off demand to be a rates values multibillion on what and the billion, have core freeze showing to we’d prints maybe basis of lot our across that transactions considered be plenty of But mean, product. that dollar big core capital of low of that regular acquisitions least there cap there might one-off product portfolio. core has in but continues been a been, day at capital I every not is

question, just know. that's whether which or is -- comment, your Now not I scale available I can't don't I in just

Michael Bilerman

asset as into well above your above also sort And his translate your on peers he's real to selling average narrowing of those this a average lot through How you ETC an Chairman does recycling certainly views basis discount equity vocal and from as has pretty strategy assets. through pure a doing your perspective as liquidating to about a just in markets on estate been of lot discount NAV? that and

David Neithercut

has more ETC sold done guess the math my years But than obviously. than not total the correct, a if sale more is of couple think XXXX valuation. more is than last EQC’s as worth we've of billion in and I the in $X percentage I company probably ETC Well, we've

been it larger as the active So represent we’ve may in as anyone. but share as not company,

Michael Bilerman

a insinuating I'm that… done that things saying I'm haven’t lot not of you

David Neithercut

it’s these perspective. important that to of on suggesting put communicate appreciate but I you not things in that, I to else just insinuate No, call the to everybody kind I'm think just some of

of he Residential. And business, us of I his years time arithmetic go perhaps right long a to your around begin he all having we to done think and and the not had price stock different the need regard you view, conversation, mean, to about hear about to of concerned estate to go the talk it’s his did in discount about so business. has relative away Bloomberg discount us that have if view encourages is. of real run to just more run respect conversation [ph] have or was I whatever does ago and And maybe He Equity at network a obviously you view. plans than discount, back your I what on tell Sam our can but something and his insufficient real says is couple from of being Box a general Sam estate. we’ll stock which for the at widens where kind Quark after of with a said, run his he is his believe much now the obviously That view current sort to a specifically more dispositions it’s business more or to we understanding buying suggestion of without general him I with NAV, Sam

Michael Bilerman

curious this the on last side a you’re Fannie in and and certainly what fund and think the how multifamily scale equity of & versus and appetite that on private XX% the question bit terms single portfolios type deals? it’s down assets your last or software I'm whether be large to year. lending pockets whether about the views what side a over of And Just lending bumping market willing you mortgage capital equity sort take to [ph] there’s would of little market of talked core seeing large Freddie unsure up you

Mark Parrell

the able but in Mark. reflects do Hey, in of And of has are types we as affordable They product, I I their I on our them certainly explain. pricing Michael, not that product unfettered, loans said ability lender very very just we to mean, underwrite little to size. however for really been this kind a on by think I significant it's to have transactions Fannie end the caution slight now XXXX. probably is certain as something especially a things product would anticipate their secured our active can’t finance large in for & is extremely preference I being -- and active, just they ordinary extremely just it political visible can’t discussed are their you well. very think Freddie and of reasons I've debt ability have year. very or do course I

due I that political conservative with is that I opinion. So decision we’ve got large plenty talking in you very, very of But others case and underwriting think can’t them you’re both in and to room about think their a to any and do decision give loans I do to.

David Neithercut

Well, just not not the that’s there private we’ll a was those of in agencies. true, financed add by transaction sort to been has of but that public significantly multi-space

I event that public sizes, space. was in Michael point to your but to again a seen our in role Now played significant smaller that private think every they very in -- we’ve

played that they mean continue, Now will role. again doesn’t there’s it political have issues that but

Michael Bilerman

Alright, thanks for your time, guys.

Operator

Stevenson Rob to next go We’ll with Janney.

Robert Chapman Stevenson

afternoon Good guys. morning or

expense Just first and of are the as or what a terms you can about or well? couple negative revenue from more not left, driven a on the quarter sequential talk $X.XX that’s whether questions in basis driving that in of impact store, same predominantly markets

Mark Parrell

estate that I Hey, that really about refunds alluded in my fourth to we real It’s quarter. in of got some Mark. sort remarks it's tax the

look of XXXX bit. that between that $X.XX we was being quarter large making the like meant couple larger refunds of that move larger was the this increasing just of instead in it running difference sort just system FFO of kind and just QX, that first have just quarter in in out that a through So was and forward decline really probably the fourth those spread usual throughout and

Robert Chapman Stevenson

through in same or does you years then of couple tax mean, next like, you those role same [ph] time normalized of store of I go Mark lot help in I mean, constant taxes? couple you sort and in at the the on the tax guys a And get can you next of have can -- more what down programs assets a Okay. on abatement the back expenses point your peg some over the stuff understand to a just me city. and stuff of York property store the pipe your New to years abatement is it just looks

Mark Parrell

I the points on loan, to period, does particular it's go for of I probably assets New year prepayment for the to number the think, we in want to you it maturity, remark, of these it's fair XXX XXX assume cap is a done, a years. there XXX-a there term the points the it loan burn Every the XXX-a ends decline. growth like the basis sort to year closer at to off, all of next a due just York to get goes get end some isn’t basis year prepaying of add of number But in closer Rob medium our penalty all and down. on the end year that’s every rate

tax because created trade cap it as expense. time the property at rate, in assets being a is stabilized P&L in NAV but do mean feel the get these you through lower they So

Robert Chapman Stevenson

that's for Airbnb update last any then progressing relationship on me, one relative And and right. expectations? to All with how

David Santee

this of activity David the in Santee. portfolio Sure, QX And is pilots in QX additional we rollout -- on in of of most these why properties completed put Airbnb selected XX we on lot the not that's lot as the a building corporate a some buildings company this there We QX. -- I'm housing more of is that XX were that buildings. group specific type will properties and sorry typically vacancies

thought visibility is would into it's the don't there it's it So getting do, us think give surprises, what into more what just doing process. we transparency has I any companies exactly doing entire which and about been are but these

Robert Chapman Stevenson

you, Thank guys. Okay, appreciate it.

David Neithercut

Rob. bet, You

Operator

Kim to next go Markets. BMO We'll John with Capital

John Kim

Amazon six if I are for markets we four market was were company. your be David best for the what finalized wondering if announce your the HQX. winner your you. would which Thank of core the on thoughts

David Neithercut

for market we’ve best the capital allocation deploy. Would in got highest the of which be that company, the

think in submarkets there be think certainly great a most market but to I It’d be We deal out. of that sort certainly would marketplace. is markets fun that which there up. identify a think would three most this figure of we be is DC. in that trying DC within coming everybody having NOI beneficial possibility the those good good have for for any We market,

John Kim

XXXX of Okay. And is your a question increase on rate if if I guidance rates? quarter then in wondering the store declined your same second bit an little to was contemplates $X,XXX, in rental that

Mark Parrell

show full for on out new it and the you growth. XX, expectations, smooth So at year you lease when doesn't much leases renewals look when

John Kim

The $X,XXX effective number is rate? GAAP that’s rental the so

David Neithercut

That's release. press the a number from

Mark Parrell

sorry quarter? the I'm are $X,XXX you on for fourth

John Kim

XX, your Yes, this page supplemental. is sorry of

Mark Parrell

David it it rates up it's rest goes mean, is not bit, in stunning transaction quarter, think modestly. Yes, decline thing a you and parameters rate very to are new in new fourth going given I mean it I average intensely as of in not about the what go the customarily quarter. but and has renewals to a and the I that lease some it's in little run down see lease there will rates only for

David Neithercut

leased a the the the as include person for of and these often of cancelations lease this out how we little when to year the Yes, widest walking year lease that receive cost -- whatever we're rent previously reasons units lease had bit I meaning talked re-leasing that time noted best Due during or over breakage numbers the that time about how again been don’t summer. a previously is delta during about from out. we

it’s breakage that’s but the So impact lease yes cost we the to economic of the delta company, full because lease the not to while lease that recover.

Mark Parrell

just this I And mean, in I have not thing mean, to is like went it said XXXX, happened. I uncommon down an add, to

as ominous. It’s read particularly through XXXX it sort is this take year wouldn’t third I and fourth way the that So to anything the the out. play against just of compared quarter often sequentially in a

John Kim

Okay, the thanks color. for

Operator

with next Guinee move to John Stifel. We’ll

John Guinee

John thank Guinee you. here,

expect taxes X% just Let on expenses, operating to fully X% things, to estate to utilities X% personnel mentioned X% X%, me real a a great up focus we continue to at two first, go this it. five to to that X% personnel all you Do least do to utilities think they annually X% levels and the and was three years taxes thinking for job aberration? we of one-time go going up at you or deserve sort should next are be real estate these

Mark Parrell

and us, contribute question for lot certainly on-site John, very Mark, very answer. that pay healthcare a effectively portion to medical deserving Thanks a our estimates difficult its our employers our raises are background to self-insured. Santee you significant is to we’re changes David But it's very reserves to give we've this and on also a given I estimate costs think payroll the little of that insurance like but just personnel, these reflect in to of most and you this estimates

really lumpy number which your are saw XXXX a on made in there So towards experience depending our had good of that and of estimate claims we decline you payroll our move We and large end numbers. number an that that a can move the lot. could and that

actually impart run is to that think feel the X% well increases. be I as terrific end estimate X% a to pay don't as On for costs I utilities, forward, medical X So X% on costs estimate some very repurchases year, because think, but years, trash years rate probably going and lower having and over were in range that and Angeles Los and this I do David that’s good these in seeing been his to of of the it’s negative it’s the we where up few of effective. things, our and three lot near terrific a team small result two more in we based a hedging Santee of just increases past utility hope

XXX-a taxes, we’re a two submarkets cautious we our turn finally stuff on in their which for rate it things So how big real be a because could that think were reassessment in year X% handicap to you we Jersey are that should I as out, understood to will And don’t is estate having run there too is in too or the number we trying this necessarily, utilities X% think of lower. the New in very that us have first case high generation. is guess to out hard it. It’s made that been of may is

the take pay how of appeals that well late, success goes guess some decline we lot could to are of at attention, a had how as you successful, in gave Depending we we that as we that, some our I range have you for script. number see also many We the good more. to of from hope are have

comment you, color bit right for number one I'm you. X% for is payroll, a I’d sure not So for little give probably rate run your but the the of that's

John Guinee

for is no hope the listening properties We from one that Okay. one.

merchant XXX the question, that re-crowd and they've up of shop, spreads Do insignificant see spread development spreads or point been are then shutting and basis just -- points Okay value. second closing of XX XXX a you people equity plus. of off building they do points their do see these signs and the to you about to come is XXX laying you XXX to down multifamily? you spread and underwriter XXX instead builders are are maybe maybe know getting basis any signs they Or creating and investors builders relatively starts the lot in down XX% XX%, were merchant the as basis builders just used interest all a any to merchant that expect to

Mark Parrell

And be their continue or sort might forced There further same I away building from believe all -- core. access not to to certainly Well equity they capital maybe is merchant submarkets be yields, well-capitalized I'd different on that the the may in just of different some building might the not say their capital to well-capitalized, because that they product sidelines were of folks have perhaps At sidelines. that different there or certainly lesser now are experienced have yields. time do at of urban to and they locations we above. lesser believe sitting we guess that the shrinking the builders

think it’s bit of little I So a everything.

John Guinee

Great, thank you.

Mark Parrell

very You’re welcome.

Operator

O'Neill. Sandler go We'll to Goldfarb next Alex with

Alexander Goldfarb

try there. two by morning quick Good out I'll quite be to questions.

provided First, that that every year. HQX, market the outlook that XX% area produce you almost huge so you David, amount for of the continues doesn't assuming doesn't to on have and supply there yet And based DC the take government NOI guys sound great. you job of hiring just have Amazon a

take would pairing So guys doesn’t Amazon exposure you consider of your if there, that some market? in

David Neithercut

we I will of in government mean our see to in as supply. market as And we DC, every markets supply think outlook will we What for what exposure those we've reduction underperformed believe consider Well, is market hiring new those new see the say got a true, one in are is we'll pairing by a XXXX. not come Alex. well in big really that you sure. and given continue underperform that

that we it's to support said, certainly continue market believe be that being All valuation. continue under a trades pressure. printed there to that are that will in So marketplace being

certain apartment top been well. and periods which it that DC coming I'll but in seen think doesn't mean the any not great recession. my guess long-term have lines And DC while And than guess So has of a time it is phenomenal doesn't market over out fantastic be saw market, fantastic other in the don't in lines not doesn't do apartment might we results valuations. tides turn also the anything be of diminution bottom say I will growing it we these a real we've

been in got do demand district least in years. in it's for the wanting do and to walkable that communities in people in the the at the more which again We or think think district, et market but we and as growth we’ve terms we've got of So Springs next Silver close great live assets revenue and we assets sort more of in several cetera. and underperformed [indiscernible] will in Alexandria that for okay, acknowledge

David Santee

rid deal that remind did you we got And where of did And part and sell packaged the DC assets we as as Alex, further just fair stuff. amount Starwood suburban of to we the part up well. some as a transaction of out of

Alexander Goldfarb

Okay, And for that's David then helpful. second Santee. question the

about pricing how for head given into season much later you as are as the there spring? the like to would as fully peak do push is foresee You concern power, your expectations trend But you'll you have the markets year. revenue normal peak not shaking out as just talked a that you as leasing far pricing you that power that may be the normally able the or

David Santee

over on nevertheless we market. Well that are will to little the a I I that gave curve the think be going be different bit in of that each curve. the shape there expect lease market-by-market a of indicative curve each a in is market. But you And numbers lease

year peak So will it to rise yes, outcome the April we in And full those of determine call expect pricing revenue through August our periods. growth. levels the what

David Neithercut

of attracting a immediately we're traffic, just have much how function add that, that and seeing in pricing not occupancies issue pricing was years is remained or following demand six strong, obviously just Certainly than very, the but it's not I five just is on moment. if we power the have, a issue. the the for less So great Alex may did so we power today The this we recession. very

Alexander Goldfarb

Thank you.

David Neithercut

You're welcome.

Operator

next we'll Jefferies. And with Tayo to move Okusanya

Tayo Okusanya

everyone. afternoon Good

concessions any Just local you are or increasing you first may could a talk the did have they the in concern compete merchant and they regards how seen rationale is progress ago? in the the up are it two developers about one just me, from quick where to builders at kind markets you little with in like to supply, behaving year quarter bit lease guys get even of that that first a get there pricing to level ones

David Neithercut

the been see markets we acting quite have as very XXXX Well, they believe to we that rationally. today, similarly

said cautious moved developers questions noted for the us fact lease change. for but we But rates could they gives very we’ve to believe previous earlier of in stimulate rents order expectations ultimate his levels and deals offer believe today, we sort are the them Tayo. anything build might expectations up, normal that prepared for would think would achieve offering remain net in need lease the but remarks as very, response much about to how that change I and to not York, their some investors believe since New be New effective seeing Santee in concession, to haven’t that they amounts. started, York David but on That very their as these meet and meet concern we in we their particularly their to little refinance I’ve cushion

Tayo Okusanya

have helpful. in my in your to then XXXX question guidance? starts And developments confirm just any that’s do last not you we’ll Okay, forecast

David Santee

require we great I expectation noted demolition the on start that going begin did that of this year. we process old this of begin garage expect the to this of capital not is of property is and does deal project summer Boston, a our But that construction will that our begin we -- I in demolition year. to will to it begin that be

Tayo Okusanya

year. This

Okay great. you. Thank

Operator

comments remaining, call questions remarks. I’d or to no to management the like closing turn With back additional for

David Neithercut

Great while, seeing a been to around your and added patience look season. well forward appreciate everybody we’ve the I

you much thank attention your for So today. very

Operator

time. you this participating today. Thank conclude at That you, for disconnect you does our sir. Thank call may for

Equity Residential (EQR) 31 Jan 182017 Q4 Earnings call transcript