Equity Residential (EQR) 7 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Marty McKenna	Investor Relations
Mark Parrell	President and Chief Executive Officer
Michael Manelis	Chief Operating Officer
Bob Garechana	Chief Financial Officer
Nick Joseph	Citi
Rob Stevenson	Janney
Nick Yulico	Scotiabank
Rich Hightower	Evercore
John Pawlowski	Green Street Advisors
Wes Golladay	RBC Capital Markets
Jeff Spector	Bank of America
Hardik Goel	Zelman & Associates
Rich Hill	Morgan Stanley
John Kim	BMO Capital Markets
Alexander Goldfarb	Piper Sandler
Rick Skidmore	Goldman Sachs
John Guinee	Stifel
Haendel Juste	Mizuho
Michael Bilerman	Citi

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the EQR First Quarter 2020 Earnings Conference Call and Webcast. Today’s conference is being recorded. At this time, I’d now like to turn the conference over to Mr. Marty McKenna. Please go ahead, sir.

Marty McKenna

operator. you, Thank thanks First and us discuss to Good XXXX for Results. Residential’s Quarter Equity morning, joining

Our today and Michael that may Manelis, Chief featured constitute and Officer. certain our President speakers Financial this Chief are matters Mark forward-looking discussed Operating conference be statements Officer; Please Bob during no our our Garechana, or risks advised Parrell, call These are subject statements these the of and The become of within uncertainties. forward-looking untrue meaning update the subsequent forward federal obligation company that statements events. assumes certain supplement securities economic to laws. because to CEO;

Now it to I’ll turn Mark Parrell. over

Mark Parrell

you’re their and morning, to or residents XXX,XXX make keeping from this thank with thank want I leasing rolling. serving or for difficult by whether big whether performing you new during our many working essential on-site roles using time. begin duties, the touchless today working for engaging giving Good you maintenance are our you Residential in Equity hum, corporate process, joining dedication us today. remotely my a our are you company all to concierge prospects Whether to Equity colleagues home Residential that

for you Equity thank much amazing Nation very work. So your

way best we would in usually the In can April, of cash that Now our XX% the our business. we residential weeks collect. is turning to The describe in collected seven it I last resilient. business about

knowledge coming fare recession, $XXX,XXX residents technology that well. While no industries, other feel having the of household part of will we annual relatively employed and incomes from our country’s portfolio will in immune populated average of economy and our often properties, with be

dramatically. in full period, team and and his a quickly Michael leasing operations When Our week the operations resiliency. Manelis also team pandemic mid-March, our service few hit over and pivoted, in adjusted has force shown

tasks We up, our picked you indication we remain see further that essential safe side, saw about the R the comfortable noted side, of made that on our as recent think through demand our this in people process in are focused us places give post-pandemic decline this we markets and on our crisis. to quickly more attractive details the the our living we helped Michael will initially a capital fully When customers target to able since demand On taking prepare activity leasing resilient, and cleanliness, weather through feel for residents the to but our all we And in which the the storm All and significantly, announced, and will do minute. were existing in properties his and our that demographic. has with challenging service maintenance all, lockdowns create a were live this release. team acknowledge and world. properties Michael with comfortable leasing touchless for pandemic. going a have remain days our been ahead to and pickup steps as We lease.

will in We sheet, our further already Bob balance have describe strong a as moment. Garechana fortified

staffing fuller in preparing our the for also properties with lockdowns operate are as relaxed. are We earnest across to country

of these in in be performed historically expect exception. this downturns, has and residents as would our mind to our Equity safety Residential reengineer We will keep we the well employees we business. and no

to circumstances economy as We add that and its will platform way will recession. this the well high-quality given are that we our these assets optimistic works operationally for perform through we opportunities find

the did we Finally, guidance withdraw release. in

results the used and a significant on timing give provide near-term pandemic the helpful. you it might amount information of our and where reopening to are unable process the impossible impact receiving. high-quality our and the preliminary continuing go is to for of to the of estimate did We on of makes business with in business. character We April’s the you’re precision It that hope that estimates us

call the Michael. turn over I’ll Now to

Michael Manelis

Thanks, Mark.

over very days. of today, the a recap quick start past the year. off provide XX a good to to Prior I’m for pandemic, to going So operations we the were COVID-XX

of the then primary for to and challenge. Our this ahead season. we causing were operations occupancy hit, to well expectations, COVID-XX new our was positioned And adjust unprecedented us leasing

Let with families. themselves by in ability our me intense was an employees markets on hard mandated these Shelter-in-place our acknowledging adjust mid-March. by start early their quickly to unprecedented inspire while They and keeping operations our customers, and properties, during dedication their the work of focus in to governors times. me

staying continue home our our common taken website than shelter-in-place, normally and seven to key to the residents day, and more the increased made operations. months area our days a our to intelligent frequency, E-Lead hours we In For XXX,XXX leasing. process a video our closed week. to the content accomplish. we some conducting quickly amenities, modified pivot at uninterrupted. we would process changes process sales us, This us to Capturing artificial that cleaning XX responses We virtual means have via video to allowed began this entire business response several conversations sales

We our the current drop which said, social also on we week reduce XXXX. as a the look each distancing place. compared being in back of through leasing implemented the applications traffic new number coming With March, employees residents traffic continued staff process. of validation through period running to same coming our locked in we When has XXX door, the we receive we the the XX% over applications and of March the front see reduced been rotations end That keeping shift new office the property. the business as saw to to to to XX, but doors kept of to encourage we focus

improvement without point Overall, from basis the last range, we We point residents the upper offering is mid in May April in has option a renew basis last April XX% to almost and which increase. currently to are are retention improvement as an XXX now May. renewing improved and XXX from

April renewal since for retention, good occupancy New nearly overall this Despite the and points. York strongest is XXX by declined having XX percents has May. March, March our XX% of basis

quarter, the it orders a will second lifted. the most expect from to We are shelter-in-place hope base in setting impact occupancy as improve we pronounced new the which be

me color the began with Let At improvement beginning performance notice April, actually traffic par in and XX% demand, now an the on we both activity with by in share to and trending April. of on almost some last year. leasing rebounding

XXX applications for in which In we very were had improvement us. a over averaging is week, fact, the late we to March XXX encouraging compared and significant that last

that our March and the the see would usually clear Given in of get increased the continues activity applications to experienced residents. to in that that portfolio grow to May. lower even we attract like volume well-located in match demand is last days, high-quality, we more to XX volume future is that help the we What offset

remind is of to On by of were with are Angeles market. to of longer While month lowest require in statistics X%. and delivered partners. the close certainly of X% of at cash around Notably, was people pandemic very circumstances. quality were periods reported that and centered our jobs mentioned laggard and like we these and XX, the trends. strength The resident I strong is the one a good This X.X% would in them our data, or move and which markets life unprecedented quarter pricing a first reasons only monthly this is XX% April the changes evident given Mark the collections our Seattle delinquency we required April show quite base. everybody deterrent, Denver the time that Page to by below received delinquency, have included definitive the our fact rest This to March relative average. markets that Los is resilience collections. the usually

property And locations. our cut garden-style delinquency mid-rise, more in most also looking more at our taken We or assets markets, of have type. high-rise than urban experienced at have a suburban higher our

by remain pricing we week through our compared down strategic the COVID-XX, our created As continued the year. here to are in base last same today, X% we disruptions Sitting rents efforts. move

our you limited the delinquency performance revenue Let which resilience, portfolio. markets. notable overall and me has some best great with in color market is give on shown Seattle, Overall, the strongest growth

On it in and any from retention New York of market have technology a shown to signs markets the one is supply it bit the New we expect mixed benefit but other low applications. not of story. Long-term, traffic and with also strongest hand, that presence a market, York their has recovery new of expanding the has the city. firms

of We are the will activity through area pandemic. New as worst the the York leasing hoping gets hard-hit improve

as improvements that this new challenged pressure. supply Finally, will will supply Los Despite market given pricing year definitely to this. with we XXXX remain a the in anticipating meaningful we Angeles pressure that challenging continue applications, is very have delivered. add started COVID expect to recent would

the preparing we the normal. Well, So we’re properties our here? where now of do go in stages for from new early

time. business teams new now, is our call layout common time, We employees the expect turn any to with to to the but accommodate number you. standards balancing to our virtual ultimately, social properties; at challenging things limit the this Bob. our given on-site adjustments customers; areas, Thank with and be engage At focused of the normal resilient, ensure capabilities the distancing; cleaning to the the Right on fitness These positioned increased to staggering of shifts that to work deliver. are including at are leasing deep lounges we times, I’ll of to and is shift over and time. going need over

Bob Garechana

and release, business, accomplish schedules I’ll modifying up where for Thanks, Pages our by help XX% We’ve to a as well-positioned disclosures and we breaking our April operations our operational from business. stands modified business and operations from diverge practice public the update public a our quarters modest non-resident enhanced revenues apartment on our of We This of mostly parking in two-thirds same-store and revenues, total ground with floor Ground is total up is makes component new Starting our parking Michael. business collection on meaningfully well-located retail non-resident likely of of This breakout end for definitions by number to night’s non-residential and that of In of This between our non-residential, Part includes order our of terms the through give clarity expect disclosures. disclosure with an statistics, finally, a providing residential so the main disclosure update will We defined with XX much the the and our a these last out today. hope in incredibly And which and would specificity by non-residential liquidity that new we’ve disclosure. of to the non-residential residential our making key release. upcoming brief at our better of rest. makes the this, continue sheet balance up present same-store do about at smaller balance X% sheet. highlight communities. back providing floor performance provide performance of morning, retail X% portfolio. a includes XX consists to release. it our approximately to on this information. and the

volume that significantly we XX% impacted hoped, As part, good been XX% eventually portion have drugstores, you rate approximately orders work-from-home this the lifted. of our and by public of would rent, parking, by non-resident retail while collection chains are struggled. We decline April, and The disclosed, than is small the that be in shelter-in-place arrangements. suspect, while With may good most have continued for as retail what increased a lack owners evidenced national seen spaces April we retail many pay rent the branches we’ve other a local recover suspect that below bank events landlords. business may for would higher portion This parking have space shelter-at-home occupy given all the an of have, which, that for tenants to these certainly orders.

of an credit balance debt X.X% by highlights first an we asset $X.X closing times end, closing We net loan San to X.X priced of liquidity our in a on by XX-year under improved the the normalized position on revolving Bay Area. or with billion very Finally, a sale million Francisco GSE attractively the EBITDA facility. strong few sheet. Subsequent $XXX ended in on and and this strong nearly quarter our quarter incredibly already to

our billion over liquidity spend, mature minimal more than our level maturity, of which our commercial in until XXXX these about our does With XX% to million of next $XXX readily until development of $X.X not address sufficient facility, outstanding NOI and in sit steps, over is available unencumbered, which we here with revolving significant XXXX. maturities under liquidity debt isn’t of today credit paper to address total XXXX. anticipated This modest debt December and

condition I’d excellent back in is to to turn should operator. sheet weather they to over balance the themselves. like advantage that, Our take opportunities the it storm present of With and

Operator

Joseph Instructions] go Please start with We’ll Nick [Operator ahead. Absolutely. Citi. from

Nick Joseph

Thank you. guys I well. doing are hope you

I early maybe time Just thus can where have still you were recognize on but – in collections to first how month, very this rent we’re wondering collections, you May in far? I’m tie been the And March year. last or it

Michael Manelis

Michael. to so in of yes, this I the the right. month. are out So at is how played the looking early would you’re But identical, guess say, of I very first collections kind right like is foremost, way and yesterday, right we closed month out April. just on par we This kind of now, through

Nick Joseph

number was it March think on of to the are and you you if But that And how with about the the working level And Thanks. to then the you do think in I end rent? about put ability April, there’s always some two. the to delinquency, moving up recognize residents get how of helpful at repaid? delinquency collect

Michael Manelis

Yes.

maybe can kind fill then start, and So I’ll of in. Bob

So we we’re first about that the dealing that the and was million month. in I with delinquency, had foremost, the previous you think million total I above can in and $XX release, see mean, $X.X from

working So April. many tough of that’s the kind of have residents month residents, and those we’ll as through through May, up reminder through various of be these as that empathetic navigating the both from like And a teams documenting doing, an well setting right with that our are we financial kind mindset mindset. month of did in of our we’re payment hardships we’re conversations that of all we’re of places, And we’re plans process but going is experienced and working now this. balance through just obligation kind the just in the an with conversations

Nick Joseph

nature accelerated building basis in it that And collections, line lot the how of But you the with maybe like is terms March like sounds frame, basis that much in? monthly from historical to obviously of in a in given where just are a on totally hardships April points XXX anything Is outside the was which on either in asset increased is amount? bucket give color of that of have amount of type-based? individuals already into you delinquency that you’ve you had? any Is through. entered going the are And any geography-based, terms collections there in that that deferrals of or that there can sort that of

Michael Manelis

of So at L.A. in identified, or prepared the at was Denver the were think, the first, I Seattle right? kind I absolutely remarks, and X%. X% lowest delinquency. below total highest

we at types, property saw or kind suburban as product lower kind far of versus kind more of the As high-rise, definitely the delinquency mid-rise garden-style. of

varying we’re very regard all or from the right that over least of delinquency that think when much we mean, state payment the place. deferred is dictate I around think the one-on-one the those payment allow conversations the I set going to now, country to incremental situations. mean are hardships nature payments rent into are rent, delinquency So for in emergency reoccur. that these these are up conversations of have or I up having. And going I of set are in But to at plans deferred to plans orders

Mark Parrell

And I Nick, Mark. add, just to want it’s

deposits As about think have you any little of also have security these delinquency think forward, analyses. applied building going do haven’t a we in bit, you we that significant to

security of out, resident deposit local the take moves you speaking, generally that’s a but matter So when the law.

Michael company of a there’ll a entered security So of we bunch be against significant has, into and more do these those. payment the of plans have that deposits amount obligations. has

But on gets security these the we other have and just I’d economy with will don’t and to we’ll deposit our worse plans, do say these payment also it. both the before I So offsets, it way side better. feel have get disagree that through

Nick Joseph

was would of April, with sort your you $XX rent the that already million outside your in of collections quoting, would numbers effectively, So that amount that due? even already million? X-point And more monthly – delay – a of – of April Right. there you’re cash that is have $XX deferred outside you certain the

Bob Garechana

color little that. of Yes. give It’s to bit And a I’ll you Bob.

would about level to month very been a delinquency Typically, kind if would of of been So call think the or having to very you number income. been uncommon to converted cetera. regular you have of would of deferral that rent, And XX financial to would have of, and that have it, of or X% and time pre-COVID which it’s any where in statement the payments. basis have delinquency collecting at of rental levels, et the the impact, March uncommon that and through point ended process would something then points X% regular debt, bad it conversations cetera, have write-offs more diminished have total like a et

So modestly payment will. delinquency or in situation and very Obviously, material uncommon with business a pandemic have COVID-XX to plans, amount if of the you this implications. changed has the

Michael Manelis

And precisely, including Nick, to want plan. delinquency just the I payment includes answer everything,

like, So to all-inclusive book. don’t but them, link. pursuing just as the we There residential to payment aren’t that with books our isn’t suddenly have deal in that if our – a – isn’t in it number. remains relates a It it We we resident, plan, the undelinquent. it’s include number we is

Nick Joseph

Perfect. Thank you.

Michael Manelis

you. Thank

Operator

you. ahead. go next Janney. from go Please with Stevenson Thank We’ll Rob

Rob Stevenson

much of guys you’re you level operating areas? from other And incurring employees offset has what and hours talk for Can of been extra how by expenses about that COVID? reduced

Michael Manelis

Sure.

tell think that we we’ve and we’re equipment – overtime of about has payroll. are of is date, cleaning of been personal not less but acquiring. our incurred at our standards on of to incurring kind properties, occurring I increased some include I’ll probably million obviously, offset expense maybe $X.X COVID, I And that to would the protection Michael. only some the have this that been, off. you, start the I would So guess we specific expense also

us, We’re expense also increased then mitigating experiencing all flip trash these less residents expense. having turnover side, the those with that’s of having living some offsets. But on we’re some

Rob Stevenson

if things do to begin that of that things? the back of and trash soon, you spool employees And side back do I up of be markets, in offsets Okay. hours much down the tick sticky? how anytime some expect to you the expense other as for assume how cetera. go up lose doesn’t much the et And

Michael Manelis

it of like. we’re feel and so kind looks Yes, what to normal and think I of to kind is new what looking look going like I mean, at that reopen

it to out, are standards and money that I more that I clear at be in-house that be of is overtime, of not labor. to versus we think done only the and out that properties. but labor to kind to on expect going figure things we’re cleaning contract But going our on spending trying get to think protocols going more balancing with the relying we’re kind

Mark Parrell

withdraw add, And mean, I’ll again, guidance. we’re did I just we – if

know feel building you’re through other you I trying few give way So so to a your blocks. that, we’ll

here general thought, higher. numbers Our instinct not than be expense lower is we this will that our year

other being not that’s So zero, overtime, and because done significant. routine aren’t is maintenance costs the less more being they’re these material. the that cleanliness of deferred, all And but things are that

the that, pretty time, us. that events you tight is this And sense is a for occur going hole weather-related not remain otherwise. But absent expense in again, markets, certain our over so or will blow in number to expenses the and have general could

Rob Stevenson

– under were capital pricing the to about side, before potentially how the I in Can being sell guys – you wanted on going that you then about there pause contract people mean, assets mean, year-to-date hit. assume you to forward able How is over spend are to also COVID just dispositions And the two? talk taking completed or I I there? – today, is if and Okay. redevelopment liquid market be next a back or making quarter that acquisitions enough demand all thinking

Mark Parrell

in the I sellers, in far talking really Yes. that the or mean, is markets again, There weeks and along to process. potential institutional brokers, isn’t priced grade our anything isn’t closed a with there now. talking lot seven even very going right pandemic, last to that’s on the

I don’t markers there. have any So

mean I we’re out As always you relate to there. EQR,

and at But We job right on. opportunities markets, have it’s lot teams always looking going our be their a not in and such. just purchase now, to there’s

Rob Stevenson

near-term? are now? you a And warrant able on the the the in be to going put returns pause redevelopment, to Or do spending for guys get on you to that

Mark Parrell

Great Yes. question.

reason. pause different but a on little have it, a for We

Our in want contractors our really residents building, with the don’t don’t really right to now want shelter-in-place. go the contractors out

portfolio So And all again. in whether those what We’ll renovation. talked is you’re projects the to be slowdown we’ve we of we about capital prior spending, about going our to on hope thoughtful real These including and calls, begin that across see can get rents a real our there. point, that. going really, on this aren’t being spending lot frankly, there, on-site. a with them to are more depends But of to not capital slowdown think I Those people be this comfortable at so residents people having there’s a willing come.

Rob Stevenson

How for of significant those any in development the assets? the few pipeline have been delays

Mark Parrell

a by great so It that. Yes. saying I’ll where are, That’s question. on you depends start

Boston, where Rule. closed construction the City in still construction got the a mayor and of of of and So tower continues. building, it reopened, XX, in suburbs, that’s hasn’t March city some of Boston sort the we’re the outside Boston But for example, we’ve

say you’ll see D.C. those to in places of in of like by and do a a of places Southern less place in And California, across in And Seattle. where physical workers. kind delays good There’s delays country. the need continued. we York and business split there’s in distance I’d terms are Boston shifts shifts. delay really place extent, need up, you between your contractors the have saying, more just working General significant to people things it’s places more So we New and

things so that. of because little a down you’ll bit And slow see

what the when XX%. end for to York, are nominal, what the our move look happened places XXXX supply numbers upwards more of going of like lower like of those the our numbers and at between opinion as same by down, in supply XXXX at markets and and to in example, In XXXX XXXX California, like New it’s Boston you being Axio’s end and D.C. shifting we For supply, quarter first numbers, the would with at think, Southern be, and of

So it’s much local very thing. a law

Rob Stevenson

Thanks, Appreciate time. the guys. Okay.

Mark Parrell

you. Thank

Operator

Thank ahead. you. go Nick We’ll Yulico next from Scotiabank. go with Please

Nick Yulico

Thanks.

April on be want a timing renewals, on I from in because to you times. growth. think the at appreciate leases data it gave standpoint, can confusing So clear of guess terms this new rate I I be

reported If renewal achieved in that in you’re X% – you X.X% think renewals renewal April, portfolio renewals, rent that rate does you guys you’re kind flat zero factored across rates the saying of offering point the sort said into I growth year now. of get that roll? At fully what your

Michael Manelis

Yes.

So this is Michael.

renewals, So of I numbers the foremost, and were got January generated to February. first we on realize April in offers think reported that and those you many

July executed started were pandemic of out issuing even offers there. mid and for of to So those well leases late began. before of those kind now that kind When June are many offers those we in May, are COVID-XX already March, really

in May think is would to the you deliver flat percent. XX then us down, to I start points is And to see somewhere basis probably when So what renewal trend is XXX positive. could kind that going I of between expect increase to expect on June you’ll see be

Mark Parrell

try And see asks, to expectations, that, we renewal we little what will at adjust we’ll and just the and market to to can add get done. look our a our and start

see asks, far year. decisions mid increase feel supply expect demand in making we’re renewal conditions, of way So our out some as through now, Right will would I as as later our conditions and you to normalize, in sort August. to markets us the we’ll and start

some judgment. So a and we’ve that got to make at call point, Nick,

Nick Yulico

look new it’s numbers, on month, know lease you traffic. at I could Okay. data That’s mean, also side, I much any you I don’t change guess seems right? if April unusual have And But didn’t You April so if have far. helpful. May the on like we as the share

you just we’re at be looking X% number, to a think could should new in guess if out similar on talk growth May about growth down maybe new impact. how April, about lease shaping I that So almost lease we

Michael Manelis

about same I in now or think the year. week down that last remarks, stated are to base rents amenitized I Well, kind Yes. the prepared rents compared right of X%

So if that numbers could as XX that to that through that, by could points, release, you you so kind footnote looking change deteriorate of points. But down lease XX you’ll down way that of on to the new you’re about that, May, just actually expect X%. again, the XX term it’s your you fast-forward like that improves XXX to go are the see basis actually negative basis the

level. one asking to at But I or looking month. understand down to So I just this are that thing through amenitized where stats, I’d like know lease-by-lease where of from because, see caution kind we’ll rents last a is my X% is that’s land work relative always to think again, don’t everybody just I exactly these you year, and that kind which of why

Mark Parrell

take add up. we It’s feel conditions. we it’s pick that’s at demand the little bit And moment, that – the gave certain. going some momentum extra We And on not answer. I’m chance, we we the will to to to and a a disclosure just Nick, like like, side, certain occupancy about, feel

other we’ve shown days that the these we and we renewal have We and recession, expect the but move-ins than quotes. where and would I go, already move-outs. having new all side, our see various But and lease we’re unwinds think more on we Michael will the these affect feel have occupancy to orders as said, how that. to recover. occupancy you stay-at-home And good have, then And with about

all seeing of kind occupancy already steady. We’re that stuff

we’ll fashion, in we So markets there’ll as out into see that an then it’s these stuff rate orderly of open we lockdown a if again, the and up, and don’t that, our our just to way slide with. deal is be again, done hope occupancy, back work

in pandemic, of want our for at Even just feel to the a matter the we’re I we demand. good So the seeing It’s just demand price good product. about moment. emphasize, out pretty figuring clearing

Nick Yulico

occupancy of impact is to March, I on guess know guys I brunt it Is Okay. second talk points the is in I helpful, that occupancy. right physical – now? versus about kind quarter going quarter biggest the Mark. the did just any one that? mean, XXX basis I mean, worse that’s it? follow-up And occupancy idea than it already mean lost get of April portfolio. second occupancy. of you you the for Yes, on I being

Michael Manelis

because you’re I year I early too little see XX% to stronger improved. And it’s that fact now and year to think optimizing offer. our need traffic to are longer of are us retention revenue only they or kind of already level is going to improve. optimize retention, start lifted portfolio continues way truly running Well. to is start revenue this about not we But our If back for bit understand start pace to there. the stabilized, guess with at on occupancy of now understand on kind and to think term improve, right it I in impact really right of still be think to shelter like going places But par my if above last I that demand last this demand applications continues to applications with come think and the to it’s some but a if to see you’re possibly these our the kind improve, continues

Mark Parrell

have for being gone. XX said, that true on have our Michael strong on jobs these without the better recession. with, us would hope just in demand don’t to most all for the happens impact a going everything plus stemmed the bleed that orders we’ll that have seen of home all-figure sort I are it and And the we for understand And we’re once rate lifted we’ve part. is really Yes. at but shutdown, out like what occupancy mean hard view stay absolutely then It’s of recession still and you. But demand impact understand we’re agree rate the certainly million that while is we a yes, add, given the that this. to to in

Nick Yulico

Yes.

Okay. Thanks a lot. I appreciate it.

Mark Parrell

Nick. Thanks,

Operator

Hightower with Evercore. go ahead. next go We’ll you. Thank from Rich Please

Rich Hightower

Hey, good all is Hope well. guys. morning

Mark Parrell

you? how Hey, are

Rich Hightower

you. Yes. Thank

outs of move loss, expirations, sort basis follow related? month-over-month sort to the in on that What question, of change clarify those lease composition to So just it XXX according COVID again exactly. that, April just occupancy up to of point the was that was were normal

don’t there? more color adding you mind If a little

Mark Parrell

no yes, problem. Yes,

So little both, of right. a it’s bit

out when year, kind of based think was to that scheduled XX, call hundred to move-ins those are units of our the scheduled those of lease reason basically of on canceled, couple we move for of expirations move some for of balance move-in. I the in, So early, it people balance month deferred around, of that COVID the And rolls leave March were terminations. out, those the early everybody then a specific moved had, kind folks

Rich Hightower

Okay.

Mark Parrell

the That’s occupancy. really the on impact

Rich Hightower

Yes.

here? and of Okay. possibility coming own tough you do And guys, That’s given portfolio helpful going out color. how where color doubling you the then recession, a white of the XXXX XXXX, forward predominant of maybe think maybe, that composition, respect predict, think how trade you about the or apply sort as A up do effect to portfolio with your you from your dynamic obviously to about do experience Class it’s but down the

Mark Parrell

Yes. the recession think Hey suffered some folks residents laid-off there’ll to not of than mean coming, and similar very less have, very by in unfortunately effective XXXX, it in quickly the as employment higher-end be income as Mark. I kind in XXXX, question. they’re the other doesn’t levels, I got like hospitality our a it’s this but the immune the but I clientele portfolio that’s start mean quickly industries and your recession. we I I is like the acknowledged of same saying have you Rich,

that little we readily we been our those a I feel they’ll be skills much of resident employable. worry, guess depend that workers base. about I many just feel we getting on got better they’ve really jobs both will more that point. we – portfolios – do bit about portfolio, those are as much workers don’t at see In that mean have We I our back. how often think this I mean think now guess So

As technology mean people industry of resident being a few more our won’t will layoffs and mean employability, in have think their this tied through I jobs is coming recession. base, to these jobs lose going knowledge but folks that less we some our to

Rich Hightower

Okay. Appreciate that.

Operator

Pawlowski with Street Advisors. next go ahead. Please from Green you. go Thank We’ll John

John Pawlowski

us trying I’m As summer the leading around picking my weight leasing some understand of in to kind to the versus of what season? on trying being up. traffic, important to for down more or and just for comments Thanks. spring Good you put important of occupancy back follow-up morning. traffic with applications and being to application I current the want on? flat what’s what’s just focus more head this and wrap applications? what XX% terms volume the do Just floor Michael, indicator

Michael Manelis

Because we’re mean expressed of tell traffic were beginning is we that the think now like? issue how ratios to us price was then. market you many And looking right this in are March, have way I’ll looking count telling, I so okay, to were right as up And giving we backed where Well, hitting XX% so price. of who sense were of is the closing to our eyeballs everybody now. improvement can shift a I back probably interest, exist that right on. you, that is peak of and forward an website, compared yet. all try season I to traffic promotion at the the XX% peak really not we we is seeing It’s opportunity back past. of We we’re what the think more gave to But and few to improving to what with days. again, to make kind it whole base leasing the what an we I the really of going just months we’re has XX do recover go trends may continue going you be and like to leasing focus of with that a the forward thing. last know impact don’t season improvement some or in we’re not going in the to got And where then kind to it traffic month kind it’s closing see, doing the in what clearing throughout even was the if the And dulled

we’re watching playing out through you us. leasing the apps improving is in what’s for see improvement a So to the several expect would seeing the that’s we weeks Are so been for last we season? And traffic? what Are week-over-week. far like seeing

John Pawlowski

comments Okay. and what’s bad you what on Bob, on as to payments, typical work the debt, delinquency eventually then the terms X% does getting of delinquency, A back X% rate through delinquency delinquency for pay tenants your and it side. to the Thanks all come in for debt rent an X% never year down to where to with what’s delinquency rate, bps. bad see? working reasonable X% rent, your you’ll rate have market like there’s LA, a XX down assumption

Bob Garechana

in I answer to fairness. all a think question that’s hard

kinds those We haven’t right. of historically, seen levels

see historically. has like little said, very this to delinquency was very very I So been and fortunate business fortunate

any of So we X% one to necessarily I’m think between that middle outlined not process, X% I XX basis in that now. have the cetera, holds positives I answer resident in pandemic. true of to that itself base to ratio points sure Mark about of the high-quality guess that help all collections talked that the in but our to et in that terms right ultimately do should employment, converting hard a

John Pawlowski

it shortfall? XXXX know financials probably and won’t Okay. Is see the XXXX until say until it we net won’t the you in to fair

Bob Garechana

payment of that the second think with do that’s of that against kind as Yes. in simply outstanding And pay. lot terms a payment write-offs, policy you detail expense I payment of are something programs programs, we have what something reserve there some evaluate debt ultimately nature. towards and discussing at lack residents the certainly point some That’s – understand of kind policy we’re evaluating deferral more quarter of of of the and currently gets historical mean and in of because we that will cetera. about to I a will unprecedented that that or subset we my because what just currently kind these subject bad et don’t history to program a be have

manifests think the financial I how correct – be told statements. it’ll is to So you’re that, it in as that in assuming itself

Michael Manelis

need to a the And delinquency. this John, again, It’s not apply have the just to deposits we we just against that little to against to bit, add security appropriate it that apply amount.

moves do it law with usually agreements. near by when the residents a out resident time you Now that or or

So we financial little on out, the little have think give more there a what was great delinquency. there be delinquency a we an need Bob, of do crisis. offset you certainly maybe but to figure color I bit in that

Bob Garechana

debt Delinquency I’m sorry Yes. and bad and expense.

frame you give maybe reference. So the a I’ll talk of bad expense debt to

XXXX, year in crisis, been financial converted that itself over about of mentioned great in the financial we so great points which crisis I of of basis slightly basis points. In worst XX XX would run the have kind total. basis points the So XXX not earlier that normal to environment,

Michael Manelis

you little Is reference? that helpful, a giving bit John, of a of frame

John Pawlowski

longer coming do along same. it’s game there’s till coast periods, know and the right cities have more but will out cities now, yesterday Yes, definitely. a the I Seattle, a guessing more enact payback XXXX you imagine saying

understand historical environment. in trying you. in those this Just change how relationships to this Thank

Michael Manelis

you. Thank

Operator

RBC Capital Markets. Wes next with go you. Thank with Golladay We’ll go Please ahead.

Wes Golladay

people it friendly mostly Good last is in that on a question. more not or coast pay morning government, guys. rent your is to delinquency, that tied in I’m hardship more looking XX million electing is at tenant opinion to the which

Mark Parrell

Wow.

people I can pay not mostly understand make moral to it of it your that So sure is document sort is or Wes, that question? just question decided that they issues Is hazard of folks have sort the hardship issue? the to have just

Wes Golladay

on. There

Mark Parrell

for hard I Yes, to little a guess that’s tell us.

called Some for portfolio. the But the have quality of again of thought us we into back given us residents the number paying very don’t and us. insight process a that’s haven’t their not small

small a We’re pretty talking of number accounts about here.

shared people with that of most week and or conversations I’d guess the I has Michael saying, then another me So they been that need Hey, I pay have say it. two

all the that, payment. they’ll how from I’d through unemployment from as out reaching So point there that a And through those benefit that’s that supplementary that federal are be could that quickly had been well. also of conversations may that I’m are or not checks either. people And either we’ve benefit most sure people us government to-date. to receive the the

us, ghosted that don’t been have not more or number. got a a but pay a it’s, have a more people to We’ve people And few most another me talking pretty you that’s give often – don’t out. been just working something I and predominant That’s anything. payment I’ll really So us. weeks I conversation. we plans, small breakdown couple rent. it’s mean, the Again, it’s have of

Wes Golladay

I special you I renewals phase-in kind the be rent forward? holding portfolio. is every or increases would whole guess the guess you to of appreciate different for call I doing Seattle flat renewals some for renewals a out did that, strong, you tech of Okay. blanket But you segments particular. going how in workers markets actually are going Well, it quite in And approach your portfolio?

Michael Manelis

Yes, think Michael I this again. is so

and looking now would renewal think, different each we’re think September kind offers. months renewal of how of being of with was kinds August like at parameters we I of always I kind set issue So And offers. done strategically kind market for

going start then of expect, of be would see I a So markets will kind maintain there and results what of tiring kind those there’ll increase that to markets will be approaches option for that and are. that no kind we back

Mark Parrell

unit. markets, priced it add by to isn’t we And just

the we industry get types and we on great and we our did there that like renewals. increases renewal. get that on could had in when had years, company were had things mean So And we when bad for I increased XXXX you unit types unit in XXXX great

How now it his thing saying, feel are it. legal Michael play restrictions. that’s market and restrictions forward unit-by-unit about looking starting are of team as to But do demand this how going at to and to we’re are think thing. maybe going removed. market expecting a we supply we relates and kind is about how be the and in a this is going It So it to

Wes Golladay

many at market. than looking of Okay. guess, your different the in one. little a last platform, your I competitors One probably

showing? think taking you special share the new with you’re applicants do the applications self So of and

Michael Manelis

balancing people our historically somewhere And new whole that’s that with not now got or interest whether off. share. do would taking used of interest foot now would range right for kind in take ratios what that’s definition call been tell close But that think us Well express we’ve XX% you. mean of traffic, to I kind but leasing. a historically express people of I kind against more with we we virtual that what market we’re closing run tours

closing So those we’re when XX%, applicants. normal kind XX% of share the of we’re more than getting

Wes Golladay

Thank it. Got you.

Operator

with next Spector We’ll you. ahead. move Bank Thank America. of go Jeff from Please

Jeff Spector

Good you. thank morning. Great,

Just and follow-ups one just picture a of maybe couple then big question.

figuring that you going is hard First out the be – on Is – your XQ. I mentioned about the I expect XQ, the it’s in expectations? and it applicants it’s to occupancy XQ – you to thinking be occupancy just on levels do to convert believe – worst. just the during right those here. guess into rent applicants

Michael Manelis

had the No, I that are from think what when XXX would now, even occupancy week, it the down. May plus brought tail the before moving impact of last I at at, we XX. of in we it end applications March Right them look say call you kind experienced of April XX% this and what really call is

that’s to balance. kind of going So help

or portfolios. is at you’re this still So understand you’re that whether that of yield I you’re the not XX%, to you’re balancing if for going where you’re off revenue bounce is spot world at I to trading optimizing to and XX%. you But optimize this in mean equation occupancy revenue, the too kind rate of on of going XX.X% and or continue demand and start path, to going back think say and optimizing it’s part maybe management, sweet back these early

Jeff Spector

then more mid-to-high comment. I to made believe Can you that thanks. little Okay, hear than were you a I rise. higher there? bit style color was provide delinquencies that And surprised garden

Michael Manelis

Yes, sure.

income was every ratios. in of rent it We do and see looked our it relationship at. was has just some to single where can – that that almost kind this with So market of we to

where when had like, held at high-rise start the of highest lowest income. property style So lowest, it are as it you of our versus wasn’t being of our the true And surprising, that markets a percent looking absolutely LA Seattle all go rent was right. more those When income. markets. you the garden And relationship we that, about to when across also while you Seattle percent has think property. But

Jeff Spector

to is maybe work building And let the encouraging working offer it’s amenities, comply too gyms the Like, from working thinking thought foster with, can say space incorporate we’re on, or apartment thanks. open working it then to used from folks open from into is the are and hear home Okay, areas that just, soon with is that in to more lounge set the you building. to within we buildings a you or to distancing tell? too to home, within of changes I terms about just up that social environment it early to up

Michael Manelis

like group new start individuals by that So a we in I whole what does guess operating look I be will of the on to it first saying have are focused normal. just

for in as starts occupancy think that fitness residents that us to and opportunity these our areas of And spaces and safety all and our working that of opportunity jurisdictions applying start think common residents, how to operations social to rules about are there’s our our space longer-term some I look the that lot complexity it to more, available how at allow at operate. employees at our center, with have be think and may properties our a from of different adhere But be existing adjustments one we’ll about to may this think each kind create from there’s area work and we home wellbeing any that So an understanding spaces we looking up we the we there’s to of spacing them open that of home going to to as common as spaces guarantee limits, going our the distancing. of our about once is to as to as does we well make do up. opening and fact as and have well look

how get more to using I you’ll that creative allow see going occur. spaces think for So us start we’re to with to forward of

Jeff Spector

it believe to and I of last share too worried optimism opportunities? they some be York, with is still Thanks. on Jersey heard you might your you the hopefully going-forward? EQR mentioned about there New when your you kind mean big New that, and I soon York a I picture strategy us, admit, a Mark think I do. on can opportunities, more New some there still about And York, come then strategy share thoughts picture us with But, your I just area from New just question, my Mark, will thoughts big tech bit to am go-forward in

Mark Parrell

Great.

and a So there’s questions kind York active a And I investment not side guess on another city when going of of right in I in two question, earlier better. on is said little of on lot that. I as by just function would Part remarks, investment New now. saying, start a the that it is we my I when get read side might sort the might just there’s

right dream they all the price getting still to remember March seven price gotten a they sort weeks in about of and We’re it’s early have buyers in, sellers and little would itself the while now to that take for out. think going

big did out Some that of of crisis. coming deals the we quite might active remember, financial you were the great we

coast at crisis, on development the deals fourth events. big broken the quarter think to portfolio in condos XX months then XX into third mid-XXXX, the GFC New East XXXX. XXXX of and those being months and the beginning XXXX great land, XXXX When the coast York, So the both purchasing beginning all were and at and – quarter, you West were after the financial crisis. about Those that of done really

see So act we be a I’ll to really before going to tell much it’s you, while on. little

been your market, into York, And York change quite focus and way did New was a on population York bit. York gets long-term after in big there’s been size. I York to New costs little quite people resilient. last come before, New to it’s this We I’ll of opportunity we bit been start New XX And urbanization would been through these comment that. X/XX wouldn’t and you’re the epidemics XXXX matters? terrific about York about New aware, sort trend in we a little So, really little X/XX higher think years through, riots, about think was a yet, little in the with replacement a it’s mean wars, decamp lot in bit, it’s through will that are trying question think what growth is city in a from and the thinking New this and it sort as that back are I cities through New York And trying anything than think over had XXXX. be of and a of

think adjust I to figure restaurant, how the their and morning, mind, you top businesses So are hopefully apartment every efforts areas their have. whatever. have their there’s over investment. this I I out still our run to have of don’t think always cities millions and time, over up nonprofit, of for distancing this these about to then we’ll time focused be these and that we’re to throughout we like cleanliness, cultural new some owners expect trying country but figure their could going are cure And these and dense to waking out to And in large going of cities amenities, going suburban our that on investment they’re think rules restaurant, they

Jeff Spector

for everyone well. thoughts. you wish I your Thank

Mark Parrell

same. Yes,

well. stay You

Operator

ahead. Please Thank We’ll Associates. from Goel go next you. with Zelman Hardik go &

Hardik Goel

in your is is color. And the meet buyers – like I sellers you the haven’t gateway the a thought Denver. and and might seeing promised eventually on, somewhere what federal rates for out difference in cap city when market, versus where investor sentiment Thanks the middle? are

Mark Parrell

Great.

to I repeat make back that sure So to going understood it. I’m

where up a rates might and cap had some end markets You interest investor like these in dense through this question about Denver. of less then

interest investor question. the or question Denver the first, The

at look sort out. again, us little it’s that, a to we As just for early that

value-add like of example, think may for attractive. be types less I trade some the trades

hard deals were think a likely your value-add pandemic to doing And time just of you’re perform time pretty up jacking are to the renovations, lot all hard ‘rents, going things. going to that a of done you’re have the I have those poorly. before

that sorted stimulus, it’s than more and rates of markets think we’re And B So this I you’re going on about had resident properties and sort get as quality you’re than the last investor going people and ones in this of see cap to go some better with Cap past my on see in. ours you’re recession be interest lesser C out. those I this and compressed cap basis through these to talked you you better. really than stuff rates like is get those all lesser we’ve the between call. rates and and think, to durable have government markets perform down sense come employment And going basis see in

and So rates a that Part of of of costs. is rates a of course function our terms end cap are this where incredibly low, up. interest is in things sense but limiter of there’s of replacement rates also because

because will real got capital perform costs more think when that paying rates interaction weren’t before and big of an or And were years no It you other the be company then that area. estate and apartment premiums So in if than to just better about our I matter the think the surprise what cap there’s replacement asset. a they two because in about sense bunch attracted to most you be lower, rates. My buy of rates. sector rates things going wouldn’t to replacement cap the there’ll than on particular pandemic costs, of three with interest interest me careful are you’d

So I surprise lower years if few it for say, now wouldn’t cap me than reasons. a guess and are those I in were look they what through rates

Hardik Goel

say let’s style out quick split versus what just high-rise. is? you as a just And could For properties follow-up, garden delinquency you’re

Mark Parrell

give Yes, I’m that detail. not quite of sure level we’re going to

our probably more that’s have fingertips. think I at than just we

Hardik Goel

all Thanks. Got from That’s it. me.

Mark Parrell

you. Thank

Operator

Thank you. Stanley. Hill next Morgan from Rich with We’ll go go ahead. Please

Rich Hill

include almost Hey questions. Coast, about XX% XX% of mentioned two final good of collected? of When the think guys. noted we about the versus rents declining does but should afternoon At you quick on this occupancies occupancies top on that the sorry you follow-up XX% East – I’m the declining rents that that least March, already, you we or collected just you think if the

Bob Garechana

Let hopefully this question. sure It’s reference of I’m the answers me rephrase and kind and to question make understand your I it of going frame Bob Rich. here,

of higher So had right. the payments. XX% In we occupancy, half rental measured is March, March

anything, probably in understates so did we understate Does whole. then So if your percentage collection probably April, that that it answer the XX% what is question? a as

Rich Hill

think exactly trying at. to that’s I what was Yes, I get

that the So of collect said included percentage went your if rent did would not and X.X point occupancy another percent be down to in you compared the month prior. that way,

Bob Garechana

That is correct.

Rich Hill

industry went losses, but have down, institutional were the lot long about shock been maybe curious, for How the focused do better recession look of this big conversations a guys That’s is job bigger question. X/XX there like? everyone’s a you that? not helpful. Okay, post some very Obviously X/XX, what I’ve guys why think one since thank but heard on recognize you I’m income picture might memory. proxy job a the GFC, loss then in to earners. lower a you. about but payrolls I system, And And isn’t

So X/XX? do this you how think about versus

Michael Manelis

distinctly. event us Well, most we remember room in that this were, unfortunate of so

to the portfolio. First way it’s to off, XXXX say When our similar. back very a financial great portfolio is the very go XXXX all I’d crisis you different compared

of created to what that, created led lessons you pull big So would – this when it family homes. problem, a of which also that about purchasing we next out in when single think course boom happened, the

that And how really so our know where rates are to but is not point, mortgage capital suffered. don’t really about at that markets like we Again, that. think loose. Phoenix, owned I low,

that but that for some lessons the appreciate COVID the more shock was So to much to are like because both of X/XX so me similarities and portfolio hard our X/XX, there is, share to different, existential GFC draw I with was you. it’s to

Rich Hill

for this quarter. appreciate Okay. me All it in I That’s right that’s guys. helpful. the transparency

Michael Manelis

Thank you.

Operator

ahead. John with Please Markets. go go next We’ll you. Kim BMO Capital from Thank

John Kim

do revenue? if Thanks. fees could was and Good to same you morning. deferrals reduced store is rent what I wondering on the quantify, impact you the think

Michael Manelis

Yes.

be So right. of I will impact out kind depend all the question, the turns what bad long-term John, on debt answer to guess for

providing revenue recognize you guidance, – or applications we but part bad hard it’s top we’re to overall a being some up what that factor Certainly revenue would it’s it’s impacted course. impact. huge with of of fee markets, in line, by ends not normal debt and will be is a not deferral, in tax piece. So lower of that potentially The meaningful the a not your on question in so our fee lack will revenue but

Mark Parrell

been are would those that fact significant. late even I of that’s not fees, short-term and a the And impact we’ve that waiving dollars kind say even

Michael Manelis

Yes.

John Kim

impact tenant it also or same on a Is that But FFO payment not store plan is deferred the not if the rent, impact revenue. would correct? and

Mark Parrell

revenue So revenue a or if to program, still nonresidential tenant a is is the the unless – debt you is you’re a point resident against you’re deferral revenue take on believe side expense not on the the line on at bad going that revenue reserve to going collectible, a against recognize which items.

necessarily It’s So all all recognize mean having collectability. revenue. you’re going of not doesn’t about the sheer that deferral nature to

Michael Manelis

Debt just charged received tell to haven’t delinquency is you cash. but where revenue we’ve

specific we’ll So a committee, this to and either not alright. the again think discussion we’re fortunate auditors about audit with familiar over and very with be be this, will because our delinquency, time, to be and

transparent So the and and as and we’ll paid folks if remains status received plans, things revenue. these debt that And hopefully you then what’s those they’re and whether still delinquent through be on And it write whether number are about accounts. bad will we’ll we’ve in receivable into there’ll getting the write-off, right just of all payments the this receivable now numbers, effectively on be we outstanding be with it as account the it. and June have and they’re that a get look see performing we’ll will people units if and That’s at in of be we’ll we’ll July per payment we’ll the run through where runs revenue. off

John Kim

of was the your and And Yes, tenants to that you trends if cards seen makes sense. secondly, wondering offer rent then payment couple if with in I last months. credit any you’ve of the that

Michael Manelis

did, so Yes, we well.

always that there all, that had fees. the fees just were it’s of processing card, First with a with pay associated option to rent we’ve credit

a the process fee. absorb even below kind allowing our their is delinquent we residents number fees So pay conversations, a not well now. card balance would The of to with at are $XXX,XXX the are processing right level. and all, material of just we credit through It a

Mark Parrell

shows really their Yes, card put or because on you having hand that encouraging that’s living aren’t our rental a to mouth card credit and payment. that residents month credit to

from of think point view. So our encouraging that’s we

John Kim

you much. Thank Okay. very

Mark Parrell

Thank John. you Thank you.

Operator

Alexander from you. Thank We’ll Sandler. next Goldfarb Please go with go Piper ahead.

Alexander Goldfarb

Good morning. morning out Good there.

the lot payment to period pushed for plan delinquency? go out? the delinquents, California, the two moratoriums have of incentive go X.X% Have many back to municipalities, questions: voluntarily time York, any number you so just ghosting. et New you really of and Mark, tenants can would are a these don’t on First, like eviction seem good that So through a cetera? So it been a people are said things But of have as you coming not

two do they never we should realized tenants think they that and months it? playing next how the can eviction year just pay a and that So how to about people be rent seem or pay coming are lot we reconcile and a maybe to skip thing, the still of yet it few delinquencies the Are high? Or your this? you

Mark Parrell

idea making we’re on. I million, and talking progress our million worst $X take is issue – – panic delinquency that that chasing Mark. what high. around a I the I guess with it’s residential the is a Maybe lifetimes? mean, revenue Alex, going Hey, I’m again monthly to about with in our of company of $XXX-plus you’re as rent

a got in feel obligations So number like I’m am of we’ve more high-level people. tenants. aren’t portfolio. about Listen, our than I recession the this These going about delinquency credit don’t big concerned, away. I frankly, is

going anywhere. not We’re

are off, all these They to ripping great our something feedback So that they’re Alex, they EQR the can site. at really are our value service. a teams on really keeping are workers clean, They crisis. them good. building we’re don’t shelter-in-place. they so in I frontline to need credit on And don’t care parts our I’m lucky as of a that get read essential the been not property they our has folks rent the this taking maintaining them that at look people, right avoid, that the all we’re of I – know their appreciate that mean receiving residents feedback,

of I mindset, than So playing I sort the people these to I tell just mindset think Are far advantage resident I on. I hard-working hard the paying moral is few property but going mean that’s and being their describing. at owe just of that that’s different very as guess, we’re taking say hazard? I’d our to as creating resident tell I’ll not And but are to least around you’re mean the in municipalities, they Absolutely. can workers. system We’ll taxes wrong, this a rent. pursuing we’re persistent you, rent follow turning the law, them. stop our press frontline and there

And a that. sooner about later, will or discussion be there

you guess that I way. to it put So I’d

Alexander Goldfarb

number is, from whether then New of are a are – specifically, commute. obviously, second in we hearing But looking in that’s probably Mark, maintained to are say buildings your keep they that’s what just to or the you a question hearing from than saying a managers helpful. city listen, you lot York there, Yes. outside are neighbors. the No, property Okay. of live us better do? York, Because you in? are residents are of to impacted, from about number what your looking leave, their New And looking Are a number move you your

leasing So through mood sort season? summer summer expectation the is York this New what for and of the

Mark Parrell

the start the just York, portfolio, would I an improved retention experienced is the guess retention city. in seeing by with it that but I always strongest that Well, New never renewals saying level. XX% it’s at had We’ve absolutely one, in

not So residents those terms. a of lot or our two at put. it’s for like months, just they’re XX-month they’re are renewing And a month staying staying

to answer from front the thing hardest yet it’s hit As like a now that’s other because it’s the door, tough really far understandably, which have, right the as COVID. rebounding not the markets

think term, the looking that. I like short for a new us. to of little see the bit So get in But coming feel York in need of kind a folks a it, are what retention for as side of or positive and and dampen New everything else the public a little I soften health saying we to what they’re bit think crisis is to

Michael Manelis

Alex, about, know. other been The wondering and thing, don’t we’ve we

As when doing Mark apartments comfortable getting the out when get is And going tours. do I for to and at people and home mark there’s question lifted? said, feel just do there stay the virtual improve biggest orders mean are to see going be to more the marketing will on they’re but self-guided comfortable but Those a are their they closing. property own, are tour more doing feel our efficient. able distancing, looking in good techniques. Those That site.

also So portfolios. true it’s people some that. want apartment all We’ve other the owners’ fall. into extensions and that there’s we’re other done people of probably to probably trying to Those go balance and somewhere, people

the has one we’re no trying because been different isn’t of a a go this again, to But bit little as whether else longer we lease sort through might that’s be but season part peak, where on So out, bit. – – a shoulder a than we any it other, might speculation into and leasing go the little our wonder a before. kind about season this high

Alexander Goldfarb

And XXX years. for don’t you. Thank we hopefully, through another it go

Mark Parrell

well. Stay Thanks.

Operator

you. Thank

go go with Please will ahead. Skidmore We next Goldman Sachs. Rick with

Rick Skidmore

you. thank Good morning,

one question. Just quick

And you’re you able to move perhaps of look think occupancy, you are tenant perhaps various high think about how trade-off grade? kind build the Or to that tenants at? you as occupancy do looking occupancy? do the the quality you you. about down and credit spectrum As Thank you credit or quality grow of

Michael Manelis

proven So right demand tell at and for some think resident changing I the and to if mean residents. Obviously, we I have change we’re continue the summer of our do some now. that. some pull I path. and we don’t going through that you, criteria models, strong the a profiles this and revisit underwriting now, benefits base, levers down I we changes. all But not that will think expect to point, our that, that’s And out totally can right we’re make

Rick Skidmore

Thank you.

Operator

Please Thank John Stifel. you. with with We’ll go Guinee next ahead. go

John Guinee

what nice hey does us really me first, Question, here. Guinee a detail, exactly mean? little ghosted John today. Give more Mark, job nice –

Mark Parrell

to we’ve because for definition. and that needs to Thanks hand us, and I he more between Michael maybe that that comment, I’m term, used and it going over

Michael Manelis

Yes.

I it’s that. some after the our before, stuff. said to right, have to some really difficult, of hard. delinquent these think have think sit have empathy, I they’re to you And of go to Obviously, I you this the on-type, lifting reinforce this tone color working have ear, is heavy to to balances give with obligations this just because you that but the also have because

outreach have we for folks So heard right, that haven’t programs, we from.

But we’ve on We’re back we’ve subset well. do checks messages, gotten haven’t our dealing from folks. those some well-being sent have response It’s some from is folks. we zero of eventually, left as alluded I many of term a trying the And group some we’ve this think ghosting residents to these to conversations it. and that we’re we heard And to e-mails, Mark that with. again, with small have

John Guinee

Okay.

half on just out the silent mean doesn’t they’re in with of going it So It night you? or and furniture them dark they their took not? maybe means moved

Michael Manelis

would part been process, that to Goon make enter one markets; silent. of is sure door notices on because I and vacated make mean is but of a that will that some we’re it the putting to be some the we we us, on doing. things the sure of hasn’t that

John Guinee

in bad how in revenue Okay. far to Or a to there And next both run occupancy? Is everybody there occupancy. tools would of to obviously and XX six full and good rents optimization terms maintain are full computer-generated then you to color, like you run else second, the yet? a you have in not drop months

Mark Parrell

No.

I We’re I definitely not guess give yet. can you bit there a little context. of

in were the with. regardless parameters actually in essence from We off lessen volatility On they and yield regardless pricing of foremost, of as our it we and prices of pricing duration of term, generating lease begin XXth, beginning to let management of turned to March the applications prices engine. lease stopped our some well. of stay as inside just all first we the So changed March, just these

– at So traffic point, seeing come and application kind the back. of now application we’re we’re back that come or the and watching the volume the

of reinitialize So yield started couple or management we start ago, daily application weeks kind changes the to well. to LRO a of just the sending as that price out

this So I I don’t it know we’ll said kind exactly, revenue, occupancy what where I you’d before, of level optimize is and allow. rate decline think what of

percentage see are think rents we of fact the closing I demand to price be. is a market I base I that to that would now, tell X%, can to down needs right going you normally and the think at – clearing we’re what alluded But what be. where you higher

feels level are like going So the levels today, and the that, to we’ll demand me, right just forward. see where

John Guinee

consolidated Great. question, last back you. then Thank of consideration for Any joint think increased disclosure your you’ve ventures? bringing I Okay. And got your disclosure.

Mark Parrell

parking so mean, at a garage one asset really of… our just that’s the I unconsolidated joint kind are moment ventures it’s

Bon Garechana

you unconsolidated? say consolidated Did or

John Guinee

You’re consolidated.

think the stopped that? partners’ You ownership I of doing consolidated you economics or out use your to carve JVs?

Mark Parrell

footnotes stopped color you the to it. Yes. very it’s But color, or the you I that. a I the But you page in think more percentage. color more there’s on small Got about it’s – whole give Marty it. could in the disclosure And more a in and de-minimis including It’s in very Happy supplemental give also; can just of point We release. XX-Q we in the press to XX-Q. a some the XX-Q, amount.

John Guinee

Great.

Okay. Thank you.

Operator

ahead. next Thank go you. go Juste Please with Haendel We’ll with Mizuho.

Haendel Juste

Hello out there.

Mark Parrell

Haendel. Hey

Haendel Juste

you’re So, post-COVID of world done of I more I considering periods changes shifted plus leasing. in annual interesting on a think be potential to quarter the second where leasing forward your comments your leasing historically think that earlier the cycle you’ve XX% and third quarter out could

active considerations look? on appreciated. might of color some how Thanks. are So that that be just would Any and these how curious

Mark Parrell

Yes.

to more looking going us and kind at I’m Michael figure seeing shifting start, here. supplement a conduct and hairy So this of it’s in out of This of little is going small to our and situation. customer is to sample the Mark, sizes trying

Michael, don’t few now again, doing we and just be the has have six the those. turning that can’t I will So flattened demand want something. That’s expirations late tell be by longer. a have leases out. sure begun on We month of will machine, just; pricing do already to in fourth we’re It quarter. you,

do to So to to raise are us going rent. that, incentivize your we

that a want you flat. for do a like-term, If renewal on one-year term we’ll

a now ready Haendel, some instead been guessing because really to So and a ready. there took expiration few position listen, turn It’s schedule, our we’re and August I’m would but so those our right. manage we’re people extensions and portfolio in move people I shorter okay, guess, to April go, term have see one and are and in still or going who others, was March you in term around shorter May, and may April of they no

there at say not little I’d be point. a So fully may it’s this of shift, discernible, a but bit

Haendel Juste

be or who That’s are have helpful. they extensions same historically short-term to to that been would extended here, the subject the lease just COVID And percent? been before are folks at or taking Thanks. premiums they clear, also those are zero

Michael Manelis

No.

moving. So, pivot We through off just everybody to term any the give unprecedented about And was stay. March of froze wanted term at to rents of to increase times, now, were XX that. We no to of people regardless way increase. and really them help that move change has these our to basically nervous opportunity flexibility starting basically to at since and had people no that kind we’re

the that knew play all think going just understand I to yet this. So leasing impact it, we out. is definitely season, peak how from don’t is We impacted like

Haendel Juste

that. Got it. you it. Thank for Got

that do you’ll less And be? world? have what more contactless makes for you maybe more operations post-COVID of world" leasing Another curious investments a virtual personnel. of think I’m need world, leasing, inclined "lives in tweak leasing you changes tech some on-site lasting and and more a to with in the could in accelerate term experience kind I’m your assuming your you operating and recent here near if for as increase platform post-COVID question. approach virtual

And to on thoughts might some your that how Is less forward on the would be have on maybe curious just perhaps So that then going you views something loss? retail changed here, investments? technology business exposure. look

Michael Manelis

the the doing start tell that talk kind with we were before I Michael. up what were lot I impact you, a will all heard think initiatives from I’ll just sales is a teeing us operations. you’ve about we Maybe all this and on the this. So, of process

I was to us. accelerator an think this

this things thinking just kind about. of of teeing advanced already the lot and think were we I a up that

high-content we’re a with new element to all continue that available it to I sales think having That’s have have live and available, new the to above going process. close to of kind tool process. the doing and forward, sales think of leasing leases our we’ll video I added going applications. just kind available layer of as tours. FaceTime virtual of a this kind another And It’s

side our the as the far kind was about change be focus service of that to We down top were from quickly us the an As software. tech this investment at urgent I’ll team investment goes, had on house thinking for the side the we advantage that that of with honest individual in only. already transparency this. a We tech huge to complete requests way did the you, to And service not tech. business. mobile was all It to deployed pivot what allowed happening of the as

a what get So knew big was device. we That from done all your mobile win. to needed

business, investments On the already to the sales of technology need that most the side in to we’ve we’re made of the going run.

with technology, talk ready units was about XX,XXX units the think year. into were making move some this I you forward home We out there X,XXX the getting about thing smart where investment have deployed. biggest about heard that we us is already to

that. will some to we’ll then out forward think move I probably operations the retail? just us bit, hit come longer going in going going the available. won’t clear pause, out of kind environment, on maybe you forward, that see the I this next-gen of already be get to keypads technology touch-free, are we’ll that’s just in one to of Bluetooth-enabled. technology that it is very be you contactless, not wait with of areas little world those think kind as but But There’s about want see to it things of a probably have even normal. And new probably this that term that vet continue this we’ll immediately to that and But of are and think only with we’re Bob,

Bob Garechana

high-quality No. We’ve how The minimizing limited up with exposure we ended have so that on that we an always today. hasn’t company, we’ve apartment right? Yes. non-residential buildings, that retail We’re focused and on exposure. pieces, in apartment focused That’s changed. investing the here

exposure urban In a change standpoint, at high-quality all. to assets, don’t going strategy think some typically, these our to with that’s I retail. from in So areas, particularly markets, the there is

Haendel Juste

helpful. And one That’s more Thank clarification. you.

I And think set time I recently the XX% of impacted delay on into lease is by earlier, some you figure timing or that are us COVID? correctly. to I context? and between movement approval before part? heard put either the mentioned your I guess Thanks. that I’m being XX% here And the wonder in Any signed maybe then or how noticeable guys XX? customer’s change new you help in that leases curious part if more May move that

Michael Manelis

Yes.

May it’s think to And the XX% scheduled week looking lease the move we’re typically behavior about is a expiring. you first, last as time standpoint, from season. you see are are Their leasing So of a in seeing in I people of XX. think duration, months. that. lot the I applications a have And this future year, of XX, before I May what leases think the not think right, to where you peak That’s

to have sold behavior. being normal We’re for become in change future, we or we’re vacate those a their are some our vacant June that the still, units not but huge and will of seeing demand in seeing notice today;

Haendel Juste

very much. you Thank Okay.

Operator

you. Thank

go next from Citi. with will We Joseph Nick

Michael Bilerman

we big their how that where get it’s dense could other live. Mark, marker they a and TAM’s interplay I yes, I through see change impacts would your organization relative organizations’ and once York know impact, play reference, some it that the or a I to significant are that about of residential where for where the – you a Michael don’t out I how post doesn’t that an things the may X/X a a perspective. in dynamic, whatever and or except also towers. Bilerman. and frame collectively, that’s means this, Corporate had from have and but sort to would a a now know have of and pretty about urban utilization between corporations just element to their know But going are, remotely. view, workers, times. comments wanted view, a if or that, But New I live, And Hey, to organizations a office terms we’re of other of appreciate apartment they whether unprecedented this – This what working in I imagine look, clearly this have wanted in XXX% I equity workforces as America, New will house cities. resiliency going time rental is who York thought of be And is house what massive is from whole desires essential have is. condo of and the office would

can more bit a little element? So you that dive into

Mark Parrell

out But telecommute, But places. people, they’re we’re trying they’ll dense that suburban can’t together now now, to urban certainly through these going right how these it a I a of all lot in sorts hope, go figure day, out. part I we that about City they unpack. there with even work? I event, doubt, run out able that, XXX-year it areas that to trying too do and thoughtful. that are yet you all probably Sure. ways an because of we to living situation. to No gone bit. does this cleanliness. to the with distancing and So little affluent A it renters, about New and before, that. all I telecommute I restaurants big we’re urban shift? to that, this and and like go more was off And talked run how in vibrancy flexibility to and And figure process have agree these a and could thrown through all mean, in of think always people corporate transit individuals. places about figure up of York trying this how more. And determine. to very it it. the and is they’ll And to do millions how wonder Michael, out And versus lot different And people evolving systems every preferences and live social just Is waking figure get and little thought be a our is you

to the pretty and rural mind I’d you That a like to all guess I not quickly, of pretty that’s to and me young abandon cities preference strong. we is say, their the I’m So certainly all of durable very that renters we’re ex-urban settings. make among for doesn’t sudden, sense these peers that that live something moving have affluent in

will we them ways teleworking the new our companies time. I care and I unprecedented, especially more residents denser to the will, as think inside and of clean almost solutions, deny kind think the choose be So I’d include. certainly will to I excuse allow and distance don’t by guess – buildings, I but still reside. over will me, very employees they is But this I inside to us saying or may be guess still answer attractive And markets that work work itself through out that buildings where

broadcast So about sort been sure I record in And the recently I’m guess Sam of of on very that’s big the that’s I but a house the residential has view. strength think if that’s the EQR business. – not view,

model. our feel we about think good I So business

Michael Bilerman

are wonder would in and The going an an or this to good of operations would trial all some – may have, Chicago but is Corporate be going America, of you improvements, just workforce, say, have they’re there works. find and I be person office, not their I believe look employee the corporations just incremental at that a had given we’ve if hire all a investment technological opportunity and if right? we can have to now really head to our in future I portion as it Right.

EQR you don’t of local in may put you want find office, living market a incremental amount lead community in to person, or office. an another and they’re that certain an may may higher, that if You have Denver where

terms And know that if so is there provide don’t – investment your I and things an started this in of co-working in opportunity think that. some to there to like a to of is communities further already there the about? and you’d trend the started of you need a

Mark Parrell

can comments on mean I this distancing had as common I make more we these figure some in new trying comfortable buildings are open our even areas Michael environment. out we Yes. to that. up apartment cleanliness how and mean

amenities. working to we hours think our attractive people the about, right least on now. of period make past, is safe. that your They to can of in a be terrific want them the more large in we’re terrific for and you’ve they most you home good They and have of where I right have for to And ask I And think you’re lounges that’s something for while. per properties unit buildings. probably feel day but a spend a news have be been outside decks our roof places terrific than have at just in lot still – time and

and And will think again, the to right residents. to got unit our And something I industry, being you’ll have and think we’ll of your we I cleanliness thing So but safety we’ve an and good the outside feel as will. the advantage that’s then at-home get market.

Michael Bilerman

massive and a these Right. aspect. of there’s just have San that. density, while to that I rent aspect And York, in locations, L.A. thing trying certain parts Seattle, all think reopen Francisco, these would New higher last cultural And cities higher of a about

Austin to going more to back live none the in can need full reopen for distance back in in to XXX% my of part whether I And I younger, just to at world. I it places the – those don’t social just a doesn’t a bring affluent go going is force. say, lease can’t and the that not I are in office and going very not Miami And You’re are locations of year taxes XXX% they or going because for enjoy. it because I’m high, the the people or a employment city going employees wonder other their are Denver things of

could on so term we before And occupancies the sort of come further side? in the out get the other near

Mark Parrell

seen us have daughter can’t say know cities I kids to want question. this. lot their certainty I mid-XXs, live far, who’s a go you age. already. demand in in even Great their a don’t and up I’ll parents so on that again mean this our head give demographic, in live to want with back They anymore. to of the and to and we’ve of is start college they it that, their be again. lives I anecdotal, apartments to lockdown and their seems any big I just

work buildings and So that’s to many anxious apartment a you or and wonder, I they’re and where hotels about hospitality-dependent, guess work. be theme owning will Orlando come who more at I’d lines bunch back Miami, closed people ever cruise and down parks airports in of how

that’s to think a I ask. pretty salient question

stuff’s think all down. and you’re I that because Brooklyn you as it now there’s everyone’s cheap, But over I time, pretty in Brooklyn was reopen didn’t figuring available those period they to think out I submarkets and amenities, continue live live options to of and be the it, will make telecommuting people. people people attractive. a cultural operate in how that reopen be And think love to and right, the suggested, we closed love – will because they in it more restaurants these

Michael Bilerman

you time superb. they and answer to and All Appreciate Okay. all right. the questions taking gave the details really for are

Mark Parrell

Appreciate healthy. you. Thank the questions. Stay big

Operator

Thank you.

Associates. Please go next & from Hardik Zelman go Goel with ahead. will We

Hardik Goel

– peers, right ever so so some in. response, in just of a just at. I respectful some by Garden performed Mark, markets discount there’s something. get is delinquency in of at markets, I’m unemployment. some traded we EQR back be and other to your to of trading understanding this got you the yet, I – basis narrative future it? the and so be it’s in its than portfolio need across suburban is and employment question, your have guess, wanted And XX% little is time, the The But greater unemployment And I And a has has everyone’s joined now, much are that. but not a don’t investor has it’s all not higher really discount portfolio. just living help well of to that. I and about the I confused weaker your apartments through

Mark Parrell

I you what which across what just through did general don’t to hell pretty would we get I when spread going release, like did We are go, word. term, think in our long And to and we the in well feeling a look and for other the empathy were with you Well, that listen, just April. concern now in trying estate ask – sectors. this make look doesn’t company besides you do I sense, pandemic. the as is this right midst of doesn’t pretty well of lot of communities, a you strategy real some back that – our happened and COVID, at

sense. then to of lot that, a and we’re between makes all go we’re it through now is this how and strategy But goes. going see Our recession, in going and to

it Our out company We’ve resilient historically has those. through of better. and been come pretty faster

case and And just make see people analysts continue over and our and opportunity. transparent. So investors we I like effective smart up think the it pick and you be will to to confident time, need will we’re

will run. it the So I term, investors over long guess respond we the about think to and running long business

Hardik Goel

disclosures appreciate know, you the really And out. Thanks. put you guys

I a messaging and and guys. the was Thanks lot quality. transparent reporting the really think high

Mark Parrell

All team. you. and to Bob credit his Thank

thank you that. So for

Operator

moderator. of floor to session. This the Thank question-and-answer the end the marks I back the give will you.

Mark Parrell

we today, hope Good Well, time all your you. for day. you Thank healthy. we thank stays everyone and

Operator

your all This participation. for concludes you today’s call. Thank

ahead go disconnect. and may You

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