EQR - Earnings call transcript Q2 2019

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Operator

Good day and welcome to the Equity Residential Second Quarter 2019 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Mr. Marty McKenna. Please go ahead.

Marty McKenna

Eduardo. you, Thank thanks second and us discuss to Good XXXX for results. Residential's quarter Equity morning joining

Our today and Michael Manelis, Chief featured and Officer. our President speakers Financial Chief are Mark Operating Officer; Bob our our Garechana, Parrell, CEO;

supplement The during to subject Please may statements conference subsequent risks to these meaning the certain constitute matters These update laws. uncertainties. the call federal within economic this securities untrue be company statements forward-looking become certain obligation because advised of events. that or assumes discussed no forward-looking statements that and are of

Mark Now I'll turn Parrell. the call over to

Mark Parrell

Thank turnover net all-time drive and us to today. be Marty. in normalized and income absorption expectations product strong for in time It to apartment lows, the joining exceeding our business. that Very revenue, our new leading supply FFO growth you, us share continues at Good same-store resulting morning operating in is demand good our to is be revenue continued same-store guidance. a our for per thanks and to increase and has

our some guidance over of our and color Operating questions. on changes our your discuss then now performance; in Chief and open these Officer, quarter, activity sheet, give to you expense our new it and to that, on we'll guidance give detail the After of ranges to guidance operating Manelis, Financial normalized our Bob midpoints The and Garechana, Officer, up our same-store after end FFO investment exceed balance the I turn I'll you the to our original Michael all call top expectations. to Chief

believe our sale the remained there this have just prospects. than markets, we trade-in but have for us more On the are more desirable investment return front, prices to that long-term giving generally year, assets earlier assets opportunity stable asset in

value-add we assets sell. coming often see with We buyers a the continue for demand thought wish from to that to good process. is This

our transaction to guidance both acquisitions. increased billion of we and result, a dispositions $X year for have As the

was And during that property the call. second in Rockville quarter we we One built the XXXX acquired Maryland, discussed on last apartment the XXX-unit properties. three in

is bought Denver in price $XX stabilized XXX-unit a is in of located of we rate million X% that a cap which property, cap a The suburb at and and second approximately XXXX, of Castle of rate a current built X.X%. a Rock,

portfolio portfolio a suburban are We urban in in expect and that of the assets we property of but both core the creating urban will has Denver that most exposure, consist of Denver.

and for Jose was property San Caltrain San third South in commute employers. Silicon station the in The XXXX, built XXX-unit is It that which and Downtown from street easy a across Jose, California San cap was million acquired is of at in asset Jose located an Valley a X.X% acquired approximately rate. within the $XXX.X most

second of the in sold assets assets, two two quarter, During that were our joint we wholly-owned as as well ventures.

York, wholly-owned of the sold was New we first our One call. quarter XXXth property we which in discussed Avenue our on assets

at substantially reminder, years. property a for tax York of several program property part New rent-stabilized a is As the was XXXa step-ups Avenue next the that XXXth

IRR X.X%. These we asset dated a property with unlevered floor Medical sales XXX-unit asset this a approximately $XXX.X generated for sold XXXX The second and sold wholly-owned approximately an yield of Boston. million Area was in We the X.X%. disposition Longwood property of plans is Longwood amenities. a at asset The

San and one held sold in in South a two properties Jose venture One We million of XX%. an totaled the joint X.X%. IRR joint We generated average these weighted net received us approximately $XXX.X also $XX.X that aggregate of XXX partner. approximately unlevered venture apartment to sales of These disposition for Florida California. and in units price a institutional with an from was of proceeds million we sales and yield

end in a from the at The Park it HQX new concentration price asset, The Pentagon the the took located in location. It's Row. X.X%. of was quarter, sale block asset. the property Amazon sale with we a our opportunity process disposition around the to built of yield excitement XXX-unit sold the property the and this After XXXX. lower at area, We we of one additional is an to approximately HQX XX-year-old capture sold the $XXX million

comment actions considered a We of The problem. workforce to hand that taken in control. before states there's agree to a will in incentives affordable not the I any want our New to Michael, the build new country, create in housing Now I law being help call on that we over housing. York but many places make shortage in rent did in new housing this other affordable and New disagree solve York in

legislation disincentives In all. supply at fact, build the new recent has created to

In current that our share of think Michael also affordable the on a We results. stock. lead the will over deterioration will estimate new existing Manelis time housing to of New impact York's moment, the operating law it our of

of York as limits well reform incentives other point on to York in the developers associations housing we as the actions fees. impact see to we encourage our will so for and affordable its at that the trade impact market legislation to city limited to of portfolio rent-stabilized build construction barriers Through create California housing like X,XXX zoning new states our to needs. units the removal embrace in our and as regulatory portfolio the and programs for units continue to as private new policymakers continue other on badly approximately on this details we through While the caps work New well renewals our New

the Michael hand call Michael? to over I'll Manelis. Now

Michael Manelis

season product am acceleration with to turnover results report I reduced in for leasing in continued power, occupancy. from Thanks strong a pleased pricing of Mark. and resulted our higher strength demand that

the are occupied All compared the market XX.X% and for months well, continue. last several rents is week performance to compared expectations. Coast with X% same the and up today year. Seattle renewal of our our same be outperform but we last increases expect continue stable continues last our are X.X% XX.X% and between week trend achieved doing portfolio markets the East to this year. Renewal Base ranging here very X.X% to Sitting as to to X.X%

Let revised you of me is which of original assumes end of to our guidance enjoy performance strong slower year. the guidance provide range X.X%, the good midpoint of part maintain around that assumptions these continue seasonally around and above that lease transition X.X%. moderate we high underlying occupancy, new we but the into to high the we of range, and growth revenue X.X% rate context as some X% renewal of our The new same-store just both

current high year, comp due The midpoint but we later the X.X% range possible of is if from just of to is which is a year. given the range prior I back decline X.X% same-store period above seasonal achievable in the not in but usual decline of This do slightly occupancy still of end the occupancy not The seeing are we strong the what that certainly the typical. occupancy the our the seasonal assumes is XX points experience difficult demand revenue XX.X% is half described below our basis for year.

is range achieved The of end our if underperforms. bottom occupancy

leasing clearly rate. from growth by you in growth market. So season pause supply. delivered color occupancy Boston and in switching a with let revenue gears some that benefited both me a new We competitive provide X.XX% strong experienced

buildings submarkets revenue large for increased a supply year will as market from is back has the bring Our NOI. year first to guidance Cambridge market The full only the of the X.X%. Competition growth urban of number up pause have units where X.X% by the and almost of our this to in XX% we of temporary. in heat Boston end their

leasing is up a traffic change the to which a the quarter The new quarter we this absorption points. to new last very positive New of was second XXXX. York posted The and overall these basis for market XX fundamentals year strong demonstrate continue versus last is with strength very good demand same lease news aid a in will Foot proxy season. that is York is in continues change time The in market, up lease X.X% strong deliveries. New demand

Our new than were lease expected. occupancy better renewal growth all and

X.X%. York in also the from the overall revenue associated the but includes with our for into June. of We've revised the market, X.X% strong effect the full middle changes performance projection from New went growth year impact same-store reflects This that rent to of law regulation

Of by New in about half or Let the which me approximate York and the thus are one-third reminding City. units are here are units and the in City X,XXX regulation. in X,XXX everybody by start that the have that units rent-stabilized full not we changes to X,XXX area, New Metro York New not are market-rate X,XXX approximately and are impacted impacted York of about

equate full our points about reduce will basis increase changes in XX about to XX renewal basis a results year which renewal these points second that estimate the on rate We York. will New overall by half impact

The ability properties. in impact all law New certain changes fees also York at charge our to of our

by late We will restrictions $XXX,XXX expect basis XX will Metro our performance the associated of in to approximately reduction reduce and changes points $XXX,XXX an fees these fees York application XXXX. annual expected with on which revenue in impact new market Combined XXXX. New regulations

under our side opportunities will find the the look to we as savings continue expense We portfolio laws. to we on to and units the these impact monitor likely for will new manage

Companies York. and to activity wants top-tier strong there and This continue high-quality footprint demand the talent top-tier expand for Overall, live our talent. in enter order economic well-located at our market and in New properties. is their products to attract in good to

full at the producing guidance assets, from Elevated absorption to is robust. deliveries power remains better Washington X.X%. expectations continue overall our impact year to district our for D.C. than growth we market our in We’ve D.C. anticipated. pricing of but revenue increased results this A original Class X.X%

this about we spending spending will news Most the on year-to-date better be anticipated recent market looks an strength current than performance XX% of federal to agreement will of from the continued raise NOI. where a of over support The budget what is Northern coming market. have our in that Virginia X-year limits,

economic Northern overwhelming the is and in as Virginia in this opposed D.C. occurring strength that majority the fact to growth is The region in submarket mainly Maryland attributable the of

between X% as jobs of region Northern of the Northern Virginia. all share about created perspective under spread growth Virginia. X% the year were of the just on district XX% the the in delivered located six compared months in the Washington the growth quarter during in to in some submarkets, To first

the market, continues these The as companies well for existing well-established the see Heading attract companies products. of to West market. critical workers demand and the employers as mass drive strong expanding within over our knowledge entering Seattle, to Coast; market's

fueled year-over-year Foot ability this occupancy new on stronger up market's change. and a marked traffic with improvement a was outperform basis X.X% in which to lease

of expectation current original year We now full the for to X.X% current of in the year. be same-store performance X.X% our which demonstrates our given strength of growth X% our expect balance revenue versus trajectory the year-to-date

we in the On supply and power getting submarket. we're break that the front, pricing in clearly have a CBD

have some seen on rate both We where East exposure and and velocity new right there. deliveries are now, maintaining the concentrated good but occupancy leasing to-date are we've the side,

continues record high jobs. of and Moving San Francisco, economic the down of growth. end the reached to May Francisco XXX,XXX to technology-related job strength demonstrate all-time Bay Area At tech-driven San an

year-to-date We revenue with basis and expect to the XX which year than full be our performance. higher original our points is growth expectations X% same-store consistent

full to We are Peninsula South projected portfolio. in supply present At the deliver Bay same-store and submarkets. the pressure results some San in in market and East the this Bay strongest Francisco revenue is results our seeing the year strongest with

Moving down Angeles. Los to

new performance expected like which being growth results other year-to-date lease than and parking. occupancy income change and in in were offset categories lower includes renewal strength by Our

pressure of submarket our expectations. most San or slightly running the Fernando that The Valley is the be of the submarkets to a expectation. perform our bit continues ahead and rest little continue to experiencing behind is in-line original

growth projection the basically Our the of from unchanged of revenue is updated year. full X.X% year beginning same-store

from Our full anticipated year due new loaded. guidance that deceleration a continues supply back-half assume to to pressure is

year. the means, second lift in which we for expect is balance occupancy half the XXXX L.A. comp Additionally, as challenging from occupancy much the don't from of the

Orange our expectations. second results in-line with quarter County delivered

during was the on we renewals based and gains Our now a full in received this guidance year quarter X.X% growth and increased which quarter. out-performance revenue slight is on the lift first occupancy

Beach. a compete and in a have pricing the set lack diverse are and deliveries Irvine not Newport of that with is is to our properties properties of XXXX experiencing it overall, going power all to We a few Irvine portfolio due But of supply. head-to-head

a is Diego year. as having good not but as season, leasing San last just strong

Occupancy demand to from forecast. expect little on newer is is power product still Overall the experiencing We This revenue a less downtown. growth be the initial good our in due year pricing to market. X.X%. is we're track, full down our but

the busy we We're sales toward investor making update. June front, and roadmap quarter. in On progress we've had great a our really that the shared initiatives service

August, front communities. On our We'll XX by about over XX deployed sales have the artificial the intelligence, on communities e-lead we'll at end self-guided of platform. have tours

service new side our the service to the testing mobility of On we platform deployed teams and expect by the year. our fully of be the for business, began we end

also have to X,XXX home enabled next remain approximately on-track units smart within with days. the We XX technology

has me Residential. remarkable prospects very have greatly experiences a close deliver what Their to employees been leasing with residents good worked a to the really huge Let and hard out Equity season. to our focus strong delivering shout appreciated. on through is of results They

Chief Officer. Bob Garechana, to I will now over turn the our call Financial

Bob Garechana

our same-store upward just guidance. the markets Michael discussed and revenue good Thanks morning. to and revision Michael

me and FFO our touch let activity. same-store upon moment take markets to revision, a recent guidance address our So briefly capital normalized expense

release, reduced X.X% X.X% full year range, expense As you forecasted the X% growth X.X% previously compared growth top same-store the the and of expense saw for to we in expect the we've same-store between year. our forecasted We end to now full range.

notably than first by through improvement most little categories expense store expenses which XX% performance taxes. in better major all X.X% the the estate over driven expected year. a grew same expense of in months up This makes real Real is overall six of tax estate but

mentioned back quarter. the first our in is second by was during our we quarter This as which in Seattle lower asset and as the significantly of original earnings XXXA rates sale in than lower-than-anticipated well release, January guidance the driven

guidance. expectation This reduced along is growth basis anticipated XXX year. and X% original with better appeals points and tax the between our continued for success in actual This full to than has expense X.X% approximately real estate improvement

field performed levels In year-to-date and to On-site payroll, the maintain benefits than to our services. service, -- order anticipated. for second-largest also better competition customer our originally category compensation their in we face significant of increased of high we've personnel

competitive, have payroll while job new prior we remained believe expectations. adjusted -- the and With this modestly expect marketplace now has compensation lower this growth market job fully versus to we

of driven from continue benefit anticipated. fewer Like we now for to part in also X.XX% between our employee years, full in X.XX% points growth better XXXX, continued also by related payroll prior to to XXX on wellness. claims We losses focus expect originally medical year basis than

Finally in and total expense maintenance expense expense. categories full repairs remain is make expected up two mid XX% the each and our are; major last around which utilities contained X% range same-store of the for utility Growth in year. to

and first has maintenance weather-related other during by storms the quarter. during second was negatively items and quarter which Repairs normalized the impacted

year mid-X% and repairs forecasting rate in of not are outsized a the the We and maintenance growth year the any for remainder therefore expect range additional growth full for XXXX.

have Turning meaningfully range release, to the we year. in for full as normalized the raised FFO normalized for guidance FFO, noted our

interest with $X.XX contribution to and from activity; a non-existent dilution contribution overhead. more at from $X.XX per NOI in rate revenue rates share highlighted per a and $X.XX refinancing from $X.XX of and our same-store and in other from and the business by just lower assumptions contribution timing of disposition including expense share core both range rates that offset strong items Michael our the on $X.XX I a acquisition corporate to to XXXX, following floating the is driven performance the as the items; lower-than-anticipated the cap this guidance activity by $X.XX new new midpoint, expense minimal Our in outlined; based up XXXX by along due $X.XX favorable

in The was capital we the accessed of saw of $XXX both June release, coupons as in a XX-year issuance lowest unsecured for X% the XX-year markets successful of history. and in our in million to rate very notes. sector's REIT you Turning markets, the EQR one

maturing debt quarter in from that to After unsecured a issuance the used was secured XXXX. million end, $XXX the and proceeds in and we XXXX of repay portion

With about addressed XXXX. maturities of and XXXX these half payoffs, of our effectively we've all

that debt debt XX the financed was Finally, better nearly at basis of paid than rate that effective P&L was points was this an new that off.

and sheet to balance strong near well-positioned future for remains maturities. the term Our given limited metrics medium credit our incredibly

over questions. With the for to that, Eduardo? I'll turn operator it

Operator

[Operator go Citi. first from Joseph take Instructions] Nicholas Please ahead. We'll from our question

Nicholas Joseph

terms York pricing on to appreciate impact you comment the rate what for City New Mark, maybe market on York rental Thanks. you specifically. market operating control your I'm assets both seeing comments of asset in Michael's New expect wondering what the if talk and or about and rent control in results. in you're the can

Mark Parrell

you could bit. speak Nick sorry just up a I'm

what York on we're but I markets, didn't-- seeing think I and question New sorry other rent control was I'm your in

Bob Garechana

pricing. Asset

Mark Parrell

pricing. Asset

Nicholas Joseph

Yes.

asset So, on pricing specifically. it's

changes the So, to regulations? I'm City asset forward seen happen control new any wondering then rent-regulated. going expect both New York to rent you've And you market when if pricing and in given

Mark Parrell

Yes. for six weeks have force. gone new been just Thank into you repeating for and since the question rules the it. It's

really there seen a -- paper a was that that reference we've the to There assets that's any deal of was or with. activity size hasn't priced rules. the activity So, priced before deal a we really a that lot been in at that we

kind but the trying buyer think a of discussion. of different get out the transaction, was I to that's

So, any either we yet seen have activity direction. not

Nicholas Joseph

is your this in prices could York asset do what expectation what to City? New for then And

Mark Parrell

Sure.

really we're little handle feel I team we've mean market a time for just like pored in got that got over we've really understand think and rules. it's but in even Chicago going York good learning. a great to on it, a still take here and the the I to New pretty

forma to it forward. what to say the going flows a they and while market think little take to I'd the going going it's pro the are apply rules cash So, be understand to

it's in gone. has bit control New it's been more always rent York more. a come less XXXXs little and acute the was now to it's It expectation acute lately and in it's been going be My there

having So, cash calculation control of I flows. future think some their to in this market is rent used

I rates built for and values there's less in city, but think a cap going market-rate for lot for probably is general, for own. in supply to bad the -- X,XXX-plus units this we market be which especially the good

my while people's there of will changes just out, will not a perception revenues, but of to take that expenses. sort expectation little in be is So, this that

Michael sort And we -- alluded that. to of

turnover money the money fill they so to think less will I our occupied lower, again leasing less more spending now. because buildings less cost there'll because and more than on need be -- be we'll be turnover we highly advertising, even are on right

expectation my to in see not is changes cap big So, rates.

You could go deals down. rates market potentially see cap on rate

Nicholas Joseph

of specific Thanks. XXXX to the timing of or this transaction it know more you spread I the impact activity. what's just it color And the give then to XXXX the seems for only but a and that? for deals performance the $X.XX XXXX? year, is updated you related have that Is on guidance guidance. on on to XXXX minimal guidance Can driving changed

Mark Parrell

clarify I we product kind little limited my on a of bit as prior the I the to to own. more Yes. well. question -- is answer want

these So, rent-stabilized properties are relatively new.

the more of Some be impacted. rent-stabilized product might older significantly

rent-stabilized in vintage new relatively market-rate I stuff my focusing comment. through where going XXXA The is was that's and that's

create A of have question advantage are year that most on answer I NOI lot us is that and of through that disposition the going in earlier where will and Garechana created we a the Bob your this a the We for lot So, bought part $X.XX just timing. year. assets that to difference.

course most then no fact it we by the going relates almost really it's which that dilution. here, have as what's XXXX, is on driven of timing. So, And to of

you're more add little year. So, lot or you'd evidence our trading we and a of very, this Anything that few flat be ago you seeing a dilution Bob? of would years with very done indicated

Bob Garechana

No.

think that it I sums up.

guidance increase change I corresponding Mark to really slight see that's in of or that offsetting But that our You'll related average just think in that that component head. timing. on weighted debt is funding see And the in the hit it you adjustments.

Nicholas Joseph

Thanks.

Mark Parrell

you. Thank

Operator

take our question Yulico We'll right. All Scotiabank. from Nick next from

Trent Trujillo

morning. good Hi, Nick. Trujillo on with Trent This is

markets, rate to rates if turnover strong push better to So, seeing growth go just such how at than looking is you're much low? across all-time you your back are and an occupancy given to expected demand is

Michael Manelis

Yes.

leasing this we My here, this last is quite pretty more think the And a that done moderate that as call for would where than it moved I we're season. going the may much tail leasing good guess rents mean we'll we at in fact see rate moderate up while through the sitting the we've kind XX of I So, then time actually the the X.X% of points just continue as lot balance to they year, I that year growth. that basis that's are not expect actually for end And the past. season. were of

as understand much exactly with So, results how I the quarter the it's new I to the lease, momentum lease don't going the for we're second third and on -- this of between like side. but and pleased new close hard gap that that to think for the renewal place the is clearly, quarter posted we have well in pretty we

Trent Trujillo

Okay. on spread to that. basis growth to new a quick confidence just fair about to I still follow-up renewals? your ability your to think XXX narrow rate about it points lease XXX and Is for guess

Michael Manelis

take this don't that a believe Yes, to I I of place think year. that's going period time. over

will I year that compress start them between entered quickly. that to XXX as express the call see But think XXX that think the and strong spread to gap good when range pricing and was over just -- to power, expect back we I see to basis narrow you you too time demand to points. wide it

Trent Trujillo

that you're you about most particular forward? Are when there look enthusiastic any markets

Michael Manelis

we and that now happening. Well, like D.C.'s York have Seattle. yes, like what's I I mean New right I with momentum

market But buzz in California I to California really in to check where trying or power is the don't right of spread I only understand there now. would narrow pricing the Southern going Southern think that we're I get for -- the to just kind down the to now points that year. is say the of that balance right out mean we're caution putting really that So, is

have to still The other think I markets narrow. potential

Trent Trujillo

Okay. spoken about One possibility past. up you've one a bit sorry. more team little the in the quick But has leverage taking -- spoken I'm of the

So, how as year? this consideration recasting showing net Equity you much a to guidance did give Residential acquirer

Mark Parrell

Mark, on are on as we depends deals team opportunities ground sale either of think see use portion to we If right more it's more our capable $XXX the flow now I that like, with million Trent, So, see more team dividend investment the buy payment for after certainly what sees. for additional year we cash spoken are good the that net borrow of CapEx assets. we've every and that could of that can certainly we have, more. a We we we of

that open possibility. we're So, to

taking haven't enough justify stuff open certainly to leverage but to We good we're up, it. seen yet

Trent Trujillo

Thanks for Appreciate comments. time. the Okay.

Mark Parrell

Thank you.

Operator

from next Please Evercore We'll Rich the go Hightower take over from ahead. now ISI. question

Rich Hightower

Hi. Good everybody. morning,

Mark Parrell

morning Good

Michael Manelis

morning. Good

Rich Hightower

push the How related performance, second pin the or guess half first the the half the to ability impacted down shifting during I estimate beyond? first is you to guys the supply from first year? could that to half of rents of maybe an where half your

Michael Manelis

Yeah.

this Michael. is So

unit So unit second any have hitting first from see we variations completions this to different We a supply take what in quarter we really the ways quarter, tracking of in from – really the did couple market. the from in not we're versus hitting market. place quarter this expected first

and the shifting markets we to one show, typical what balance some a to in the the second we start could hit thought I at exactly deliveries kind quarter, for But delays see from another. think the from the get to was least see to the what new year of into going us year delivery happen to start you we in of of we as the market. markets could

benefited delays from of what already than So anticipated. don't more kind think we we I any

Rich Hightower

your Okay. the That's XX about of think what you not year way said be of the to implications said I law remainder you the overall into but points going until it for the or have withstanding revenue whether performance even working through impact I for that maybe XXXX. worked possible basis back think you how mean New kind could XX and this of York mean, the given on around still much then Michael. helpful people now – up to the that And variability I about comments earlier XXXX? do still

Michael Manelis

confidence than high have a of went We middle a going to of the not the that for law bit pretty that the balance benefiting We're into different because is XX effect little this the basis be degree of in year year. materially points.

it's XX half a would So if be your point to the before the impact well it year. of a lot this But market the did as and law this of X, January impact. you some was transactions on basis fee impact of this for a

to we you As achieve you would be, really what is been the were to trying where the have difficulty going can't possible. are fact you where year, next otherwise that about renewal to think going can because restriction okay mean then project renewals to figure in what these are

balance have us. to is still when to thinking it's and modeling more bit to of a try it's we you to pretty So clear, about look impact what be the XXXX. start year do the little this going But to early for

Rich Hightower

you. Thank it. Got

Operator

We'll our Advisors. Street John from Pawlowski from Please question take go ahead. Green next

John Pawlowski

Is EQR's net it cash in NOI? as you York? neutral? positive? Is see it flow new to Mark you XXXX, or about How but demand about the factors I'm it following operating negative New on Do call Michael three your your expense longer up less as just question, term concerned do Thanks. years modest market the supply think rules a playbook that adjust adjust. as next you a

Mark Parrell

that Yeah. question, Thanks for John.

think issues York housing production that in York saying, I see affordable start New it we by and New New and I'll as for for definitively a housing addressing net York negative for the has.

specifically, less. got we this hardest heavily it older of II product As is that the on because impact some us hit post-World relates cannot regulated us the War to rent-stabilized own

uncertainty evidence supply the York low itself in may numbers lending creates being there in already also development market it considerably that less communities has. in think I that and New than the

can the we just has market supply-constrained an that make argument most that New operate I York become think I in.

we on we're that an you our turnover would renewal for to lot turnover market-rate increases. think we're have may we are have of And new as contract a would on modestly what will suggest do I figure out than have revenue. go assets I out so going We expenses expected down. with to expenses, going lower our we those better numbers on So these to costs turnover and opportunity

be to that. terms of adjust about well as In we've we capital, putting will our where we're for got capital thoughtful and very

of for product as modest market-rate well be as fully longer-term XXX you the burn-off think every in be that XXX be the get So transition own market-rate in that's a or including of of New I talk an I concludes not while. a going rent-stabilized our built year because going incremental just there's into units determined. – about to kind an more as period market-rate impact And the yet to that's to the assets But we this – assets, if of fact especially, product there we're much positives operator when assets, positive. going think because to XXXa own are to you I us York, to will quite

John Pawlowski

modest the the the you operating new and pros put when positive? negative cons, regulation is But that income net event modest together for in net all Okay. of it you

Mark Parrell

a housing matter. from enough how impact can't supply I as and either modest say us be the York rate because time for New over in just to could it a market. even policy shift this for on awful the positive, and emphasize is the I'd or net But the market of rent-stabilized

John Pawlowski

Sure.

growth to it's mean, know seem Okay. two like a is there a market And like does broader question improving liked then – it and ago. job D.C. your one exposure I question we years to about more disposition, than drivers finally an just I but

why D.C.? I So in prune guess

Mark Parrell

a Well, bit we've big D.C. are got little a that around property. some we've got in the in concentration assets HQX older and City Crystal

in Tech's to just So isn't that would they're for Harper to what's some – simply and rid the in campus technology around D.C. of I it's building, kind us an in district [ph] areas. that the most assets, this to HQX you're technology of exciting of get say kind opportunity jobs Virginia us, going and new was get the older

market a be also they but So there of won't there. will technology big private aspect be just government-dependent, technology – sort

to go D.C. exciting So is a which market. to we net relatively that's the high The supply, in expect will the of do continuation numbers on us. supply negative

years exposure buy at a supply the freshen we sense less modestly in So us, we'll to But and makes modestly D.C. look but for for continue supply portfolio. exposure to is that assets I And it like talked lower this to fact a to having try market considerations first seems – the time, D.C. market us to we've in that that discussed. seeing approach. that build as and sensible think us the I about positively just four-plus the given that

John Pawlowski

you. Thank Okay.

Mark Parrell

Thank you.

Operator

Wu go All of from question right. take next Bank from the Please Shirley America. We'll now ahead.

Shirley Wu

Good question. and taking morning, thanks the for

your follow-up remarks want I earlier did Michael, So with on to L.A.

challenging occupancy as are year-to-date trending initial would get would leases mentioned to new So you more of accelerate the that of around at X.X% And continue your half well. and it versus back supply in call X.X%. guidance

guidance color that I'm you let's revenue Is other around say curious So to just income? maintaining that the your as coming from market. for

Michael Manelis

Yeah.

you said prepared outperformance a we you the in mitigated renewable. that with we was comparison seasonality new boost – need bit to think little from income, where And a or primarily of change new the other a last underperformance on parking is remarks, bit occupancy so year number. There a in So full on the one to you outperformed which relative contributed drew lot X.X% the and lease the on call to a of remember, got downside the our definitely first to guess, change that that had the little what out, and something so understand I metric I half year. year by there's of quarter, was can that lease that, to but the change, I to the I is new lease to the

to were second change proclamations ability short-term during So and do A a of there premium impact some in had in market fact the positive. proclamations running the last year, the those our to lot at restricted that compared the quarter. new X.X% L.A. is lease with lease anti-gouging place, really were put we basis that that in to points XX obtain

between and and short-term leases XX% than XX-month a XX% all anywhere we leases those So sold it premium as XX% about our of call lease. add of last typically year, higher leases standard

limits have put be short-term ability than wasn't premiums, your to to to sell greater the was place not going We that that premium in have growth place. proclamation XX%. to the chose us With for because enough leases those in

of the a numbers quarter you're that now. lot seeing that's So in the right dilution

Shirley Wu

on good from development? if XXXK platform of experience? some for question under currently their had D.C.? WhyHotel with just you your would using WhyHotel. to you of projects any you color. guys your at things that second the in That's consider learned And a you've Could talk Maybe I with experience it. Got

Mark Parrell

that bigger WhyHotel. a planning of Mark. and with do working we we with are had considering good of gate the things out sort it's public very were know to Sure, with others or first them. experience We the them Yeah, companies

them lack we'd to lease-up project had a And we using mitigate consider I think income good So a of of way the experience. that and a again. it's great on

Shirley Wu

you. All right. Thank

Mark Parrell

Thank you.

Operator

All right. from go our John We'll take Kim from Markets. Please ahead. Capital BMO question next

John Kim

wondering you. a two-year the what flat. of are were leases essentially And more couple signing? And recollection signing year? two-year market the that I'm you years growth many From when is embedded of second you softer, now? was that year with ago, guys what's Thank second dynamic How leases the in

Michael Manelis

due we specifically two-year a tell of we selling at of we year-to-date common basis. something was two-year quarter and leases actually expiring increase in that have a that's several So I me. York, York increased lot We It's ago. the New with will not forward. that had many that where leases as leases do we looked did lot had I the in were quite this you, fact And on marketplace. turnover don't New going a that two-year to and in years

it to I seeing have in don't front but quantify. stats just we're me of drop So the down,

Mark Parrell

offer lot don't a we York on terribly have New have statutorily, but material. leases the not non-XX-month -- to portfolio. leases frankly you in two-year It's I Yes. mean, of two-year not leases

John Kim

York, of that dynamic So outside doesn't exist? New

Mark Parrell

No.

Michael Manelis

No.

Mark Parrell

uncommon. It's

Michael Manelis

Very Yes. limited.

John Kim

revert prepared tech your companies Virginia norm? these a in this you Michael, discussed growing the D.C. in to the of bifurcation market, to the see and the Do and or back Northern as other do the given longer-term trend you between Metro. remarks HQX submarkets rest tend

Michael Manelis

a growth. that Virginia lot future lot has just Northern of supply the Well, too on of I a in the revenue some think, I of No, pressure is good district got that could mitigate spillover district to its be the areas, the working but demonstrate I the strong pace. in for into at think, there other And growth revenue in future. not will same some things the favor think, probably

John Kim

you. Thank Great.

Mark Parrell

Thank you.

Operator

ahead. Pleas now right. All We'll next question the from go take Babin from Drew Baird.

Drew Babin

to hit Good I on was Hey. hoping the… morning.

Mark Parrell

Good morning, Drew.

Drew Babin

have, the and the quarter second based an of, kind Good moving could was you of guidance of also of the expense hoping on you implied might little year? with expense this ease-of-comps perspective, parts be there? visibility in in third morning. from talk The that what's kind cadence change, the the fourth lumpy I the versus bit quarter a anything half growth for of just that's

Bob Garechana

real take Garechana, quick. Bob so that It's Yes. I'll

can $XXX,XXX X.XX%. guiding we XX So on the that X% basis points, for But volatile. growth the X.X% expense all at so equals to year-to-date, anything. we're cautioned don't moment it we've and I at be produced and midpoint growth

we the pretty to we half. relative line But any back see first lot otherwise and quarter to back are in for A anomalies of than much half the expectations is things due in to saw that to be maintenance. that the the like expect front half related half. We the front slightly repairs in the won't better fourth quarter

Drew Babin

urban lot but so cap Okay. we've third-party question historically spread, read research suggest properties, that's rates, converged narrow. cap more that That's A some our very in have little still it's there's B-class locations, a helpful. And that maybe more A conceptual. of one rates secondary on quite

to or at this the think and even issuing secondary is down long-term with just at EQR or maybe and this double Does at at urban double product? look to do we've a We'll that, rational prospects, pricing common what better B data on and some do on been continue just that doing. growth this to you maybe properties, still equity look maybe valuation say it's time look of down kind A-type

Mark Parrell

Yes.

I these do rate, result, yield. They're being some products. apartment yourself been we the you if think to leverage. head They're money for talk do of cap in fact mostly think on chasing to a something overvalued, you of lot think I being can value markets suitable this is. a way just there's the there's do because you're just what as continuing hit more is nail secondary they're higher slightly And our The yield. higher opinion, that just doing. about I we're into convergence terms where of in mean, any going there's a mid-X a And of it.

don't money on to the that housing probably lot of and urban at to that doing feeling right got that end. the think going they're these aren't single-family going -- you've in of now; So Because difficult. markets cycle different a things and we pressure think lot hitting we points be feel we're a are to the markets feel housing secondary going

our suburbs, true, to do. saw Rockville us of suburbs too parts the in deal markets the our continue the like, like we So look at dense you

urban product seem our does our base see as So customer see the product. we use as hit like but hard yet to ATM that open. where the us not is we'll that so the at to you'll go really buy it same keep suburban this eyes opportunity But of compelling, point,

Drew Babin

Appreciate color. Great. Thanks. the

Mark Parrell

you. Thank

Operator

take from Richard go we'll Morgan Stanley. ahead. the Hill And next question Please from

Ronald Kamdem

Hey, Kamdem you've line. got the on Ronald

for Just quick me. two ones

And terms first on in the Where guys The are getting show lock of you maybe home just, of smart the terms of technology? technology. is on in of you of just smart opportunity either technology? reduce or operating that? and And curious there how guys manpower overhead think about to side, through sort millions, sort million, is of if of sort what tens it's

Michael Manelis

Yes.

Michael. is this So

the the I we that opened of that the in the around prepared just stats on things doing initiatives some remarks were front. So of some

on the both technology mobility self-guided on we're tours. artificial of units up with got X,XXX got side. track. XX service properties home We'll our We've next platform and intelligence, So the e-lead in about and about kind We have XX of smart running days. with

stated our customers. standpoint – a talked control, quarter think our focus convenience little the is, really NAREIT I been these this has around we on last initiatives, at and about flexibility I which and bit this to and transparency, from

lot of platforms we're roles but done, going on-site the and understand enabled need de-centralization in know done see that we're efficiencies see We've what that and years. we're eliminated just technology not portfolio, and going to opportunities to to not create. I to We're a saying our through prior

of standalone we I pilot reduction basis, we'll think So momentum to we'd be point one in that. were I place and of that at dollars platform, be look worth third-party worth more it. can expectations and on we initial like mobility as a we these right now put to a in I have we're But initial from us, couple on like million in the end phases. each some closer to these contractors overtime that able get have dependence is and could of excited about things to year, mean numbers the the the towards

a want long see results we time see we sustainable period are We the we before the you but putting for up that little that to guys. start these into of for results bit. So, sure make and want to numbers running a over

Mark Parrell

there. take And while things implementation it out And is about to more itself. I evidence and these seeing event thereafter any mean, will XXXX and in a results. XXXX about is putting

stuff any And the and to work of of like. be this will that leverage very stuff we'll won't in direction. entire do XX,XXX-unit open some great we'll some technology And we the both and use platform

Ronald Kamdem

the you I years? you sort of outlook think Coast East about Great. affordability, your that five just West and as the to about three talk maybe a is of to My trended second Coast, next question love for little how what that's markets -- bit think

Mark Parrell

Sure.

about ask first did about you company want markets, talk I to but on bit affordability. little So a

They're about is a $X,XXX customer a in income -- have rent. average $XXX,XXX which paying us -- We year. they're of in means residents rent us our XX% month income giving our their household

have. they've So the raises. They've statistics done gotten that the not that distressed. We is terribly in customer see we our specifically well, customer, Equity just

paying So rent we we now, check feel equity talked they're that. of about about the good affordability really

side old and in a New for in done Minneapolis to recognize were in market-rate affordable where you York, and part the on create think issue do more the were example We in in program I housing, things encourage the lot incentivize done XXXA workforce of pretty that bigger that done affordable where you Seattle our is We the being with think common. and barriers. that reduce developers both zoning markets

bringing you're housing -- think, to I private encourage issue I both this answer And to to production up. address think is the this the industry for government's to affordability that occur, got way work barriers create to actor to the some of it out get as extent does on an units that to of that things these and create some I the think that.

got just zoning think likely Minneapolis housing of in So talking their again effectively single-family encourage about Minneapolis and it's system there's to on of out a that new zoning I came housing. today, that more production a great article lot rid

Ronald Kamdem

climb? like Just the today ago, you on these then Just are of get Thanks. or feel productive If than up with like I there's do trying as still -- they conversation you coming a tealeaves? sense in three obviously time, feel to or housing education get more could of maybe the I up years a to and industry mentioned, still five are just long may? production regulators a over you've of were of a if sense Great. or you maybe conversations do of that, -- the bit been they hill little to trying sort follow for

Mark Parrell

we pretty the lot trade us associations going to to people. We're it's not relieve through of having misguided attempt, rent is so well-intentioned, just active need in to A the on conversations. things but control of these rent pressures do are bit our But There run. policymakers. these with still a help long

control and ago push to I to Sydney, the that public. the they've question education now front with the rent and directly, like it. years your they're repealed lower rent policymakers they in with few before, Toronto So Australia did industry both seeing and repealed continue cities a needs answer And think Toronto on to growth than

seeing they're on they've and Australia housing. actually down high-quality produced so because rents In workforce much housing Sydney, go

to it few, any So facts a good up There position. isn't if industry is doesn't back very are the its like tent control idea. have that rent economists

your liberalize think keep that just there the So a tough measures when we in early rules. they came York There's when message be I didn't this -- to like and these the they doing out to localities and states all sort will when there. allow do and of rent started cycles preemption get New its putting to it 'XXs, time rid need stop control all did across of

Ronald Kamdem

much. so Thanks Helpful.

Mark Parrell

you. Thank

Operator

go Great. next Guinee question John We'll now our from from take Stifel. Please ahead.

John Guinee

Great.

balance Just sheet a of couple questions.

does sold million lease but liabilities of -- the then have are on second that else know, refer unconsolidated your is entities $XX.X if to? let information out still those balance you What JVs, me of And this sheet. and You ground you $XXX unconsolidated obligations? somewhere million lease

Bob Garechana

first and Yes. the liability the ROU then consolidated. the on It's ground the the balance Bob take Garechana. to talk The investment I'll predominantly and question the or on ground, are second leases. related about ROU sheet

leases So XX are also we there leases, etcetera. ground have corporate but

the a leases. do specific outlining we they very in I are ground or think predominantly job kind Q probably that of

that well release But $XX and are $XX structure million $XX-odd of that the condo that in of mentioned unconsolidated, that million assets to predominant no investment joint makes are there are There unconsolidated is two is and sale -- some we operating to disclosed post private unconsolidated previously as of true investments. equity investment related we our the quarter. own as the that there related the asset investments a the one million. unconsolidated non -- we On of are there kind balance up some technology there a anymore this is that that that

John Guinee

And who interest your have has -- you any providing XX% then maybe I think you partner are a consolidated are in anymore a Okay. on information you also venture? joint that?

Mark Parrell

that sold this those were the Well two that were quarter. --

So that's gone away.

Bob Garechana

Those are the unconsolidated.

to asset some There consolidated Q There There we in XX-odd group piece limited have properties the is another B D.C. that to is the in Q or minority we interest that. some, other also have got think so as the refer have that is we do that them. is, have market think, interest. which -- is in some related K stuff. the So minority is I in XX% there I that is ventures in disclosure partnerships and that -- a the

John Guinee

Thank you. Great.

Operator

next We’ll from Anderson take SMBC. Please from go question our ahead. Rich

Rich Anderson

Good thanks. Hey, morning.

this? the of to with have stabilized And York? lot existing to you As a that unintended market regard education rent market part New perhaps to you impact help -- actually all York like units graduate to process the again and could New of for sort ability given -- rate in that control, of that an a that if is

Mark Parrell

not I conversation exactly. policymakers educate question rate it continue may or not conversion followed market the have we in that Is your the need about to that...

Rich Anderson

yet? understood sorry this will I'm a it's Yes that impacted in by be all process way that not quite

Mark Parrell

Yes.

significant it. on probably I don't things and understand the There's in hit number on think I a question policymakers there we a are have significant probably the consequences triggered. and prior this unintended

of So -- they out. they're some things to figure to have going those

product I certain investing York's to again, workforce created think, that post-World they of is the I New think II backbone this housing of in disincentives War some have conduct of like types supply.

up. conversion But is there not just into and have think part also be those from very done to may I rates money this not So may people they've understand putting is they discourage those go they rental deals. happy fully

Rich Anderson

Right

Mark Parrell

impact So on that's have deterioration. to going that

to over react of come I more that change negative and in here rules. the probably once there's think to to some policymakers impact would So see time start this terms they hopefully of the

Rich Anderson

that compare going may part a little in may you X? I Costa-Hawkins what's more situation you New of and how would a again happen mean that's perspective, what in curious how York would your or And approaching not just bit contrast with California fluid on you're say from that.

Mark Parrell

Rich. Thanks, Yes.

news in much good is is the that California dialogue public. think the more I

AB-XXXX senate So back-and-forth. once recess that assembly. to again policymakers but the has couple we And a to a again the involved We activists is the know the at will of Bill industry public weeks at seat comes cleared the from all of go activists that in as we discussed back general. there's Assembly and right a conversation our the that in talking of about table the lot the are have in the not there in direction least be think they're

York to because in of I carefully to going seemed have it think lot more in New thought And happen night. vetted happened What and wasn't dark a it's unintended consequence through.

quality seems to can't pretty so so to end California I And far the the as up, good. of us will speculate but conversation how

Rich Anderson

Last Okay. question.

Do of you feel mentioned but like said Do You virtue don't have a a direction. this talk about you looking least urban see model? this you that. way temporarily and point. Maybe core feel the have at there's table money has how of of lot EQR of fact people that outperformed dense the left by sort the it on suburbs up you in lot urban-centric suburbs like that have to some that

Mark Parrell

this in resiliency demand Well, Manelis urban out And drivers demand happened think important not positives the the to of and we're the example Fernando suburbs Recession the and for Great dearth just the Valley, we has with of see about spoken see supply we the and of San leaders that do when lot you the supply. The what coming of portfolio. mostly and there. Michael was a

it. consequences we these areas fall through see a we suburban a urban a that's at it of more submarkets the got work bunch we've just supply and supply more these more tough having because those submarkets a appealing submarket, built see in where Whenever urban we're on become. dire to Now the time lot

circle it for a And and draw virtuous serve so they this people in numbers. hurt while would that in our and more us even

relative long be the IRR bill growth scale in we better. NAV compared low the like and on a run of people to In long what very we're lot a FFO at our and these basis in properties our a and growth feel will run, our it's a to, –

we're are work, household I numbers So in of I units customers looking year in the per more they Rockville in the about usually D.C nature to the exact our a are average bit emphasis folks mean, to the drive because just suburbs the so dense of take guys for shift. on customers $XXX,XXX usually slight that a our transit. have the think we use is and kinds the same of location $XXX,XXX. income These that as of opposed they just folks same

investments. people long in are to suburbs just be the will struggle we like that a to But no those product for be far supply, supply We think find hoping good there is Rich. and time. some minute So there areas you your want more is obsolete

Rich Anderson

much. color. Great Thanks Okay. very

Mark Parrell

Thank you.

Operator

now from We'll question take & Please right. go All Hardik Zelman ahead. Goel Associates. from

Hardik Goel

horse, taking are correct pieces Hey, Not units units? different. development question. this my I the would moving under currently to expect stabilized, guys. maybe you since if on the beat Of I see York many tell assets of those Thanks is become please of plan I'm how market-rate are And for know a me, them to mistaken. some I New when be cadence little regulation that actually the dead the but market-rate can XXXa theme think become understand the and going that bit you the to will at quite point structure us

Mark Parrell

Yeah.

Thank chunky, I long a because a because till – that it's units effectively properties. for to year somewhere from about and all and question. think And you that's one it's XXX is of period of it's so XXX them. now way think this it's it's XXXX, time between

that transitional enter So in change in of to doesn't at revenue property, We ability that the There market-rate world terms and this it few happen last moved are rules, property a the a the rent-stabilized but have all into grow in category. weeks day we in happens. world. our the it leave

every so kind built-in even the the assets going markets incremental to year that that's advantage a have developmental no that next the going with risk owning to for – have or think of market are so that's we we're kind again less nine of of in And the sort units these own in I of these market-rate more properties created years. supply,

Hardik Goel

That's you. Thank helpful. it. Got really

Mark Parrell

you. Thank

Operator

our Goldfarb Sandler with question Alexander O'Neill. Please go We'll take from ahead. right. next All

Alexander Goldfarb

Hey, Chicago. morning. in Good morning good

on the which just down XXXa you you and a to especially OpEx are what units given on taxes marketing vastly of first as in a avoid going remaining are longer continuing those units TenXX theme, in be increased demand. the burn-off selling market-rate accept estate thoughts your been what keeping your with I on York pressure the for is think saw you Which term? questions, while guys real two advantage go Just and real retaining the to for going off. going estate to XXXa are agree a are XXXa more those publication valuable – have owning guys abatement that And Mark I on But they're is stock local to housing burns thoughts XXXa. more your assets the New on higher be

So what versus on that selling keeping this are your doing? XXXa you've remaining thoughts been

Mark Parrell

Yeah. Thanks for that question, Alex.

that X, longer. is of are even I isn't continue So the these affordable assets end to burn-off any sometimes housing always entering period the have I'm X, not going the XX That of and true tax XXXa their end But to from sell It that abatement begun period. the period. specific years of see think asset. just few us a you'll comment on

in So an to keep mind. thing that's important

affordable their years XX everything, some assets is of but the them end and the told at case, to more. us you abatement requirements I've we've or For lately go sold see another

to are be thoughtful we this. going So about

where we and even near flow on been assets a year's think taking is assets there's over assets to assets their have years cash date different from be to growth are those a in the you to XX expiry to payday. us asset next probably probably agree value, a I hang negative. now and holding have very more we interested X certainly It's for XX-plus going We those hard have before. But we're are those onto that anywhere special with than almost

Alexander Goldfarb

Do of impacted know, by the values taxes is I the potential given going guys that gone have significant on, of a down? real-estate going are early savings you presumably to asset value assessment this you because Okay. your but reduced regulated be grow. pushback has And negatively of see buildings as to units – it's tax the

Mark Parrell

expenses a discussions aggressive. Yeah. we're we income the for of for it. with not does the the intend just be has Like a team Well, about Michael these this. at He buildings accessory I'm group absolutely And not are I that not. earlier, sure values your said you is But down that have we're us sure the works all and show that. more and investment going or this pro over to

on So we'll you of any appeal opportunities this that can be top presents. assured be

Alexander Goldfarb

in talking picture sounded there the New of revenue like healthy. supply like headwinds there It sounds other guidance almost yet like the pressure And you're back may growth are few things some there were half when then your have half lower which year, increase this it York markets on in suggests just Boston bigger it sounded is some and finally, in pretty about supply. obviously increasing that negative back on the more coming Okay.

to I mishear did in that of this year? half some be or second So, are there markets headwinds going are the few

Michael Manelis

to of less and think for the But that's remember point I impact on in later is for think starts as I to being the come got side. you've back-half very the you're I revenue is on L.A. loaded absolutely delivery what the correct. stub No, impacted pressure mean I'll that balance L.A. part just year volume pronounced less of of numbers the the towards QX year. QX, period full only the that transactions a because

year's demand definitely to growth is back-half next loaded in see just basically just to into bit, supply be to But going year. absorbed be and softens just forecast we what's going and our and little it's next happen strong, and fine going play it's to a markets stays of are embedded several if our we'll the demand if to going

Mark Parrell

are into tougher we not important That is Yes. We're have it your guidance better roll We're the question but going going into few growth much to talking because and the over XXXX but have next last year, Michael going comps. call, as been the embedded growth and to is I forward-looking. point on important likely embedded given weeks. occupancy the

others York pictures in will better XXXX that about be New Some of these constant. XXXX it of supply a even lot like markets and L.A. the of is in and for the will be some

half particular seasonal easily as to doesn't of just But have you're end usual could the the end that's of range last in. terrific the that's risk isn't year. moderate So, feel recently occur. we occupancy about some and we as the to going back coming at up the I happened -- there year, if like mean variability going is top

Alexander Goldfarb

you. Okay. Thank

Mark Parrell

Thank you.

Operator

question Nicholas All right. We'll from now take from Citi. last our Joseph

Michael Bilerman

a was about Hey, the and was of income net asking even was Mark, sort -- to out with York came or it's positives John you he whether and New operating is even relative Michael it here to net modest positive. recognize there I modest Nick. said probably Bilerman negatives

in guess are so all I I could and those the back from that's you money, Is about your case in I trying just why So, the housing put have to altruistic things time, regulations? effort it core am these impact markets? together? it step to that. more If much fighting spending two

Mark Parrell

sure certainly altruism. folks but with motivated politicians We in or act are through Equity not here are charitable we I'm at Residential,

don't do. they'll know what what they we do won't and think I

on enter these cities and behalf we greater into these of we own I behalf good, conversations we think want on what And think so thrive. when the our to

for that because live policy hurt us enormous market for investors the we residents that bad whole. in And have good and the New this and even as run think as us. market employees in We in it though we is policy of City citizens a long we're didn't better is city think York that

some for them be to do that education things could they and easily process keep just and listen us we stay going. of need would in that bad front So,

across political from for going the it's guess probably of is way us all more I until country. on be now So, the least this to having pressure interaction at moderates kind

Michael Bilerman

even to that negative people disrepair, city the quality going it ultimately the in large So, the you're to terms impact on your in or wanting city terms detrimental income, that values of will potential -- multifamily things of that life may more not is and effect to prosperous? are and may quality have here of long-term though being direct people assets control of the so to impact rent and and drive for do the do and a that in saying if what city thrive rather the and a you it has live --

Mark Parrell

Francisco that. just York These San people don't creating for think great I to are cities these should New like help places we And Yes. as citizens great live. all and big jobs. They

employ so you San -- in like I And growth that live. unable to Francisco a they may one lot just else have of because mean nowhere is are be to job slowing the no places

be studies average lot that GDP people in per more So, we these earnings I effectively of are all family a States in United there's able cities. growth and if house would higher to all mean

So, you've I hit it think precisely.

Michael Bilerman

Thank you.

Mark Parrell

Thank you.

Operator

session. question-and-answer to Mark the today's concludes Mr. This back turn I'd Please call like to go Parrell. ahead.

Mark Parrell

around conference you call. on and all time circuit your safe for September. the thank we'll summer everyone see the a in Hope has everyone Well,

Equity Residential (EQR) 31 Jul 192019 Q2 Earnings call transcript