Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Equity Residential Fourth Quarter 2022 Earnings Conference Call and Webcast. Today’s call is being recorded.

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

Marty McKenna

for results. to thanks fourth Equity and XXXX quarter morning, joining discuss us Residential’s Good

speakers are Officer; featured our as Michael our Our well today Financial Chief Manelis, CEO; President Chief Q&A. here our and Investment and for Officer Chief with Alec the Operating Officer. and is Garechana, Mark Bob Brackenridge, Parrell, us our

meaning this economic Our update of subject statements that certain advised statements equityapartments.com. Please earnings release be laws. forward-looking that securities is federal become to obligation these uncertainties. constitute posted discussed the events. in Company conference during These the within are to may assumes no supplement the Investors risks section of statements The subsequent call matters because untrue, or forward-looking and certain of

call turn Mark to will I Parrell. Now, the over

Mark Parrell

morning thank today year results for joining Good our quarter XXXX. Marty. for outlook all and and us fourth you and full discuss to Thanks our

for as same-store We XXXX Residential. finished terrific a year, growth year revenue the was producing Equity of expected, we XX.X%.

see to the to certainly a good during continued We but seasonality business. return the fourth saw of quarter, demand

revenue financial combined to XX.X% Our full same-store growth increase of year-over-year the of continuing net operating growth in led XXXX with income for growth modest year With normalized FFO. XX.X%. X.X% leverage, strong this resulted positive expense same-store in a

as your and moment, work to revenue and will will and a Manelis expense review and balance comment highlights shape hard delivering Garechana expect Equity dedication bad and on moment, XXXX our well In debt Michael their questions. will take through take want sheet for recent in results the a we to activities Bob XXXX and as I terrific then thank up XXXX expense we across expectations, side; all our colleagues on take Residential my how XXXX these you results.

usual. above would our same-store X.XX%, We another midpoint well have We do admit and revenue make long-term Equity XXXX Residential produce growth harder for which same-store at for guidance of predict growth to provided finding year than XXXX revenue a average. good to

go benefit both will leases On year, in to lease, in also the growth into loss side, average first a to which the X.X% positive above from momentum we XXXX of carry and and the of we the expecting written for us, positive year embedded contribute of into from half about XXXX. particularly

openings the categories employment last information modest also increases of We job our employment a renter residents customer. We services financial the and our be employment power for activities in still only residents. skilled employment decline our big and saw formed by of that the There in highly appears about blowout feel business and good for opportunities bulk in earnings services, all week’s employability plentiful category, in the reports. smaller to January workers evidenced professional as a and gain affluent big

our far reported So it Possibly factors. quickly handful a announced not far while only being categories thus tech have in least the or loss. government’s due into is financial the numbers, the We’ve to at manifested other impact creating to certainly job reabsorbed of leases terminating residents job market. the negative severance these are much is layoffs in and that themselves early possible internal a firms seen some numbers. and But in workers due delayed the equally at environment

to proven has employable. be expect we them to the demographic resilient continue Our past, highly renter and in

hourly gains achieved Atlanta incomes, quarter, by outpacing wage renter according workers college the to wages higher tracker, As to base. in the wage despite Fed accelerated graduates fourth the

decline rate This to occur: residents is data, the consistent Realtors, need ago. remain to costs a affordability high to our with to shows incomes all three to better us for mortgage to very will home to down-payment leaving Looking home XX%. quarter the According year also Association our especially fall index rents, requirements and XX-year favorable The picture. our markets, at purchase ownership new to our fourth X.X%; from to of from making prices to we internal by X/X, one competition fell of in home things a pre-COVID will to value. supply in and relative product see their levels, a increase percentage X.X% which in need XXXX, Homeownership apartment return the by of to family XX.X% generally National

given XXXX and within On face run supply feel levels. we new location that direct to relative to market of we markets But about the competition expect apartment the supply generally mix importantly, national level side, at good supply our our we will record the of properties.

Atlanta including markets, if that’s Denver, coupled markets, and investing established likely relative which Fort in supply and and in Dallas our especially Sunbelt increasingly more are the a see coastal Austin will numbers Worth, slowdown. impact, markets higher job we The with

still In established coastal of properties. have terms XX% of our in we supply markets, where our

delivered new more our internal create to apartments our on near that significantly Our pressure indicates properties short-term results. research

to forecasted decade, close at County relative below our to As XXXX’s us supply with only levels and pre-pandemic next country market housing our to of over supply lens, pre-pandemic through Washington that significant be And we look coastal close markets long-term D.C. expected as above established sets the demand. deficit our delivering good in proximity average these screening properties new to Orange for supply deliveries the within net the is averages. up across the actually properties

isn’t likely rate growth beginning despite in us fully acknowledge year considerably slowdown in job spring year. rate impactful account job of usual than reports, to actions of this took guidance is a assuming the at by XXXX XXXX pressure in progresses. growth importance as growth good and occupancy. quarter that was We full and do, later leasing We than however, there substantially are and Federal into or if season But considerably employment rental a whether technical GDP our the lower fourth during and be a and when. recession so continuing A economic strong our to more the what is decline of in rate declines a less growth than decline the Reserve’s growth whether will

also expect elevated markets will debt previously slower the of improve ‘XX as we all California this public does at policies a discuss some bad rate We in than poor level now delinquency a Bob hoped, post-pandemic our of moment. but that continue. encouraging in in

ability and in no XXXX evictions, policy make we residents even our from deteriorates new a our its if sources and assumed competition momentum sum, the forward while government purchases job have high job current business in strong market and apartment continuing flawed forward some the of modest of our to form home to In XXXX the prediction from employment levels, from recession but about results slowdown our a see results. from and supply, impact lofty strength the of positive

us. On XXXX new York a venture we in did one in the transaction much others, deal These mostly and only were City New three activity sold front, for and We handful developments. one We of D.C. structure. there purchased joint Washington in start was our not two in Toll

hopefully in Sunbelt supply us higher XXXX, which but wish usual in As we we year. the see than into the for markets expand remain later Denver we creating and markets as the to transaction in unsettled, opportunities buying head

our any suburbs of of and California, shifting Washington well Dallas our markets into New assuming and now, opportunities activity, present like markets appropriate themselves. capital not Austin strategy Fort and acquisition remain York assume our does Seattle as or out and D.C., expansion disposition Worth, Atlanta, guidance to the of For as Denver, but Boston, committed and

to over call the turn I’ll that, with Michael. And

Michael Manelis

from Mark, to our our Thanks, joining expectations everybody today. and I before thanks through for quarter key fourth XXXX performance, over the morning, markets to to provide XXXX walk color guidance. This and review Bob it for financial turn takeaways some us I will on

was full and XXXX in nearly same-store XX.X% history history, XX public the for years and lowest year significant the quarter both fourth was EQR’s Reported that the pricing a occupancy power. high revenue the of growth in the reflecting great of Company’s company. turnover demand produced as best

expected leasing our usual moderate, year. in pronounced which in supercharged pricing a earlier and most pricing to power we peak, peaked year. originally a the such than rents high less a combination ended had power expected as markets, is of Rents seasonal more started reaching likely also than we is little a typical. with moderation due with along seasonally to The the more was started In of than that robust then spring and which typical season August, we

Mark current Given announcements, employment with isn’t good about very solid increasing encouraging. was markets. this we across layoff mentioned surprising, uncertainty just the have the moderation Sitting our today, though that here report occupancy demand economy, January including

signal dashboards and a normal spring. current continue momentum to leasing Our

updated an guidance our through presentation. to Let This building X.X% our me is walk growth. provided of quarter to minute take third the in X% a and of what we revenue range blocks look management

with of the start embedded an the to midpoint additional we in for concessions XXXX. range quarter. about third consistent talked growth X.X% into in the with used mostly the X%, we This expectations first, X% quarter slightly of but takes and account of the below So is fourth

XXXX XX.X% XXXX. than includes XX resident that lower basis which of Next, we of points at expect strong occupancy continuation low turnover for is a but

supply average intraperiod Finally, and overall XXXX a This some acknowledges to growth capturing lease a impact less assumes incorporates potential in growth for rates assumption with rates. from the approximately X% X.X% will from in blended year. our competitive softening X.X% approximately This we’re along for loss new pressure assuming headwinds intraperiod full economy. positive

gain in expect For of capturing growth that X.X% about intraperiod with to in about we your be would normal year, revenue. same-store us reference, to a non-recessionary half X%

implication we and counties. the lack go year eviction contribution remarks. of is half as benefit growth return in more against growth economy, from X%, guidance debt LA and a and The we us detail we it bad Add our over feel blended government year assistance net, up that the not assumption will rental expect the remarkable including the the impact capture XXXX, be and of would X.XX%, into prepared do this the exceptional revenue to after to of of leasing it the expected year, which half, due a approximately Bob to his had first XXXX this momentum comps while levels to tougher extension faces in XXXX moratoriums rate pre-pandemic The and Alameda half will as will bad progresses. is lower of the debt our all last to however midpoint The XXXX. of in the is of because work season. which on the continues year, range be could back of net revenue over both

may our drivers favorable of business and The based resiliency. belief economy is be outlook I that, a continues on a number while demonstrate just described slowing, the to

often our As dashboards said we also have the we past, on focus in headlines. while acknowledging the

this when is improvement that mind would very early in which pricing portfolio demonstrating year, is While at the our pre-pandemic leasing for in a look as all dashboards we spring application both trends keeping and today, by indications typical season. the is we sequential expect, volume, setup the in

after Boston value balancing of modest Both Seattle San In elevated, and large resulting and XXXX. in employers. but in being XXXX. office which concessions performers will a tech issues in offered to in since Even of good really top recover from Francisco both York getting improvement good cities combination their the Francisco and the the are and have are posted New delayed two and in slight have San delivering to level downtown, still of of beginning markets, growth pricing slower both overall revenue than sequential this seeing with return the strong demand better results of in other been reductions pricing we the the are be improvement, and our with year. of XXXX, Seattle, quality quantity in life power. concessions a been weaker-than-anticipated

from layoffs these San of These across during idea, was more are lives tech the and of AI prior nature in have excessive just markets the Francisco. In layoffs be pandemic of announcements that remain the other continue in with addition, it spread decade dispersed hubs of along periods. tech than the result incubate that remote in these Seattle companies will pandemic. to some been find there are cities a means a or based our changing an This and and The excess entrepreneurial multiple from the geographically hiring these innovations direct likely sprees, during big layoff hiring Both next two we work now. spirit share not industry cities. countries,

somewhat assumptions our a intraperiod positive assumes markets X.X% Francisco growth persists, could that as but The to midpoint get overall guidance continue have higher debt X% this a If and of the spring traction year, of range the than Reaching dip on could to sustained period mid-XX% rate some our our why get improve us we growth bottom bad our leading Seattle modestly as end company range occupancy slow these expected either in the a which growth is impact are net, to for in lower range of the range. leasing our rapid end same-store into of overall more that to revenue time. improvement significant than the or would typical season year weakness the San range. to the to much earlier require for

lastly, our on over our discuss to it before turn to a I guidance, minute on to And spend want Bob I focus innovation.

focus other to income the Wi-Fi, side, and optimization. amenity parking like items will On rate we on revenue continue

expand operating opportunities create to analytics margin. and data leverage also will to We our

limiting is in sector to centralized our expense same willingness to focused growth, We attributable and on leader have initiatives activities. team’s and embrace this been store a innovation

to driven creating centralization are the and process. sales office the of move-out portfolio onsite to application activities get functions. of as will success and our out and in such we efficiencies collection great and We have our most complete the processing, In continue XXXX, in

side, teams to platform mobile to our these I On across the across create for on shout more to amazing for our platform delivering will results. resources residents leverage to we our our operating opportunities a to the focus dedication out service their want continue multiple and continued terrific give share properties.

to the Bob. turn will I that over With call

Bob Garechana

Thanks, Michael.

on revenue guidance, up process followed should on Let our little the commentary same-store and round FFO thought with out bad normalized expenses, with a balance debt, same-store sheet. me which start

to bad of debt. impact basis-point mentioned, assumes Michael the due a the guidance reduction midpoint As our revenue same-store revenue XX of in growth

relative during As relief drag of biggest mentioned XXXX the lack to payments is last in the XXXX. we quarter’s rental driver call, of this

residents that in last our than numbers significant rent started will year a assistance. $XX this XXXX that assume the would relief when offset we trend rental million we And doesn’t continue, expect lack little paying to of in over isn’t with Specifically, XXXX. received to in the in rent enough more ended this we while a year, be their we forecast

than us and eviction for. to cautious had we in delays improvement more recent initially the a slow later moratoriums year Unfortunately, within this lifting the forecast processing hoped more reflects modest led that coming courts in

end we this We’re but we in to hopeful now, might achieve expect range. of But unwarranted, levels, could in guidance caution our than that delinquency still XXXX. for be return case which pre-pandemic XXXX the top to more likely in

and estate a were year we growth proud low line payroll again that labor to second combining the to Turning expense second that maintenance, and product repairs reduce item growth in when inflation, to the even with expense and I’m deliver industry taxes Same-store payroll with growth. strategy row year we labor execute for pressures. to real low significant was XXXX, Combine of using to row, centralization again. technology below and expenses, and to in report with continued in once our exposure X% exposure for negative a a was on able

margin is expansion the another XXXX, our basis higher For meaning but rate expect than for be of points guidance, what operating year well for XXXX This growth revenue same-store I inflation guidance of below our Company. just about both to is and midpoint we X.X%. the described expense forecasted XXX XXXX

Georgia are will towards face X%, Colorado, maintenance two utilities slower acquisition. like a more and part taxes the underwrote at we XXXX For as major is up while performance and small XXXX the assess markets expect periods for expansion taxes, higher benefit expenses, of should expansion payroll drivers: growth and in estate a These faster. take Prop municipalities Of consistent our challenging in income tax expected same-store end. to be portfolio around with and real aggressive X% on great in of with categories at estate a values performance the growth and four continuing the recognize of comparable and latter categories and what multifamily Total California approach low rates. Texas strong the result XXXX, we to repairs These to a the real remarkable addition end from than pace should be and from XXXX’s grow given should XX markets following growth

through expect be believe XXXX target decline achieve this For to our we inflation. growth workflow. well just XXXX discipline our payroll, we optimization typical and from continued X.X%, of around wage I the up X% We around that can staffing and mentioned of in still below

of release contributors normalized the forecasted to to page reconciliation growth. Turning our provides NFFO of a detailed X FFO,

of of NFFO year the Company. year-over-year that release, a midpoint California the $X.XX and $X.XX per the mentioned X% from Our rainstorms over in a very losses we in casualty share solid for includes forecasted results growth,

some balance this and year. Finally, that in is times. for due, X million The November. secured given we mentioned to later XXXX X.XX% of pool the debt be is maturity debt the financeable, The our in on very on have pool activity levered planned which comments current coming it roughly refinanced financing nearly and XX% sheet. secured in rate We needs an is market and the pool service covers most is the $XXX past the

that, until which able X% rate on hedged to than the half We XXXX. have no expect to and of speak more risk later the June would at has maturities the refinance or the year After our treasury in to also incorporated Company favorably financing in is be of better, a guidance.

future capital history, the rate that lowest our recast allocation in our significant recently leverage activities. debt will our ample and We by liquidity supported capacity have low floating revolver support exposure,

over to for I’ll operator With questions. turn the that, it

Operator

Joseph from of Instructions] take We’ll question Nick Citi. first the line with Thank you. [Operator our

Nick Joseph

Thank you.

Can impact both and the quantify potential margin the those innovation in to expansion. expenses the about revenue and of impact benefits you same-store on talked You programs, XXXX?

Michael Manelis

Yes. Michael. this is Hey Nick,

management guess, last talked of So whole that the couple this been efficiency that focused clearly, technology we say our of evolution just it’s and in model. the I shows And operating the first, would platform. we numbers I in on the November and expense-focused for this highlighted really up mobility been in has creating about. back presentation, That years, more

a million accounts us, initiatives guidance revenue more I the in dollars that’s And accounts. going get included that in put to two-thirds couple with start in year kind the several and to $XX XXXX, maintenance, back ‘XX. expense of But payroll the probably along of still front, the out as kick various these impact benefit about to really is of million and think we Specific don’t have and of of just over across we’ve place for with the the year. on in repair a of lot middle in into half it’s in show XXXX up the the spread until

to different going XX the stuff. about now most tell of smart rentals, XX,XXX we’re think lot I right home. And on contribute or excited of units XX you, of We’ve And all for like got installed property wide again, you We to see being short-term the going XXXX. in is the with line. a pilots and this area number this I’ll Wi-Fi. common other income another with probably basis-point got that And about growth

intensive. which We’re doing technology the is capital of is are going this that to first look way gen. continue And to the past, the in like we’ve at kind areas been

a we sure stuff. to it’s the like approach going that to us, the okay We’re get and signals home how this similar smart on fast appropriate for to that to follower want that -- area, we’re that make return just in be installations us we to

of our the million you’re you right in is think be that it’s of the wired clearly end expect at of $XX platform in operational and we’ll By that year, of outlined company. And operating to have the into is the this the front to to to should shifting towards DNA where it of I of almost kind most with $XX never that’s that in more ‘XX benefit. now, the need think pursuit middle we foundation capture So, place. ‘XX. the I million start something the really But excellence, the and presentation we reality day, done that revenue

Nick Joseph

for those as what if new environment touch some. the maybe That’s you. helpful. in then supply properties the lease-ups? And for that environment on? are just the you well very see can stabilized And as supply on are supply, coming concessionary new for today on concessionary market, you on, And then, the concessions ‘XX there what’s expectations Thank maybe coming on in

Michael Manelis

Yes.

many we’ve when less that hit again, is the ‘XX that So clear first very concessions focused, across to a right, time markets, this And you’re and X-week supply, typically us, feel us in third concession we’re watch deliveries, their specific concessions pretty up compared watching new fourth to to to on tend absolutely direct which the from the because be the for the market. grow going our in quarter been change pressure to for inch the X- units quarter, you see the is of are proximity to going in did to range. we’re of really portfolio that it’s bad supply but like it. to seeing overall What the

January, concessions the portfolio, promising the kind starting in of of a us little What’s that see, we the value these just being to in the stabilized bit the as that are well in right year of as fall volume see is did issued starting concessions like for now back them.

what’s San kind of and of Seattle Seattle, tell receiving XX% where weeks. about if to our So our right that XXXX then you think we’re XXXX San of concessions kind new the see right And And supply applications to of the are portfolio, two across see with hard the all we in to the in concessions you like it’s market. heaviest of month. of some something expectations, going receiving say concessions XX% be now I’ll to in used. our have in normalize happen one the the watching. that And about continue into it’s expect Francisco put applications we about in blender level, clearly to so about Francisco It’s for of and And and we us to supply concentration focused you we still we’re periods. elevated being is now, going shoulder

Bob Garechana

like to ‘XX a concessions So decline of ‘XX. from growth growth, or standpoint, financial revenue kind revenue mentioned, Nick, Michael to so contribution just flat, no are to

Operator

[Operator Instructions] next our sir. We’ll Street. take Pawlowski the of from question John ahead, go Please line Green with

John Pawlowski

Alec, a now transaction terms markets on of you question which things for think you’re do or cheap from you the in mispriced pretty now. know two frozen private I right But seeing trends one your market. the market, right are is buyer in and seller or behavior, the of expensive? either

Alec Brackenridge

Hey because money hard say, is that between. of It’s reason supply any now run. pick is capitalized who are so or hard the would typically, a from far opportunistic the though to typically say a it’s But really in mispriced say seller buyer looking to has other. -- say coming than and activity. transaction one I that place lot for has The markets few to yes, forward, more have and XXXX and merchant been them are one a any is It’s seen move who builders of hard activity maybe very it’s to little to right own who coming that’s not have property. market John, we -- property that the that there’s to Alec. whatever long

there, it. to opportunities from really some merchant builders product see coming to move expect I new that so, want And

product And sure redemption read -- the who about an that have they be that areas that the private requests rate And floating fit I’m that that opportunity. fulfill. you’ve are but some on have then, opportunity of have REITs to is of the a took need Not caps all of great expiring. guys other for you debt might are us, that

coming in think given it’s probably to but there’s be So, the nine and to pretty I six been opportunity slow, from sellers more months has how the buyers more market choppy. next going financing than been that really capitulation

John Pawlowski

makes sense. That Okay.

there. follow-up a Just

and capitulation problems of private all? no potential How sources rate among being the the the then of XX you being at merchant X distress. distress of variable debt, XX, X now, mentioned builders those kind You would those or right to level REITs, worst, sources rank

Alec Brackenridge

Well, high number -- game know the merchant not REITs trades think with it’s have builders will found be to of of you. -- some But the that, sources private I to there Obviously, do I really on be don’t there. their that, rates being with that how alternate put some just to just honest a capital.

they’re a to bit. the than caps higher to maybe they’re clearly, they so So And able these they’re I XXx think little -- to And that the they three. X mitigate among highest much probably because are what used cost.

So clearly very is to an area challenging. that’s be going that

Mark Parrell

it’s Mark. John, Hey

it’s Just to to to contribute like but to easy said, that, what order to think because it, hard it’s number you about it costs wait.

is now index rate So is that option SOFR, the a seller has because X.X%. which new is costly

you X.X that. have to loan, you’re percentage points a if above figure you X.X -- development So

as to likely expensive for at Meantime, is sitting your equity that’s an X% So improvement. something preferential the X% be on debt rate well. you’re X.X%, hoping to somewhere X%, around like

more So typically Alec in or caps these is money caps X%, it’s expensive said, than been. -- lot unlike now. seller again, in that of I cost for waiting past, struck the these option they’re a do the were of And at as deeply X% think, the

is So that a the clearly, to lender to get would going require price be of a expensive. very I you mean, cap

So, significant I pressures. think those are

market going But think panic out see sale you’ll they see private through suited not to well. to all us. as the medium-Xs the levers say we other high-Xs, all. it’s just the REITs more be six low-Xs, I whether have and see at isn’t product. just year capitulate at to of pull We We -- there. going And to sell yet don’t price, to people so it X.X we’re expect can next They them all way in months, that’s cap market sort as and are from a determined. of again, go The rates well. But back will the

Operator

Sachs. line question our next take with Goldman the Luthra ahead. of We’ll Chandni Please from go

Chandni Luthra

Francisco as beyond seeing San quality then, any little signs types in And at the downtown and your central of talked in issue. dispersion bit, moment? Seattle the business versus property talking a Just you your rest? numbers, Are living about slowdown across about an any you in those of databases there seeing you’re are that the markets, district guys

Michael Manelis

Chandni, Hi this is Yes. Michael.

suburban quarter think both all markets. it. urban concession sensitivity those little going there I in are right? areas. seems in, It any stats over or are the urban, on we’re a suburban seen December demand used And really of improvement cores pronounced use sensitivity of we clearly, of typically at haven’t profile price fourth those pace about suburban has The Like clearly, of pulling markets, back shifts submarkets. think tell little bit across guess than the is sequential seeing price similar we’re you still I coming into I in right in that across the of any demand the what we look numbers, those a And urban those suburban the more because the of concession, areas, more actually seen haven’t of saw we So, now, And in profile in like to when these the urban very I we to just change. concentrated got the more the those the kind January to market. faster and kind would than we the growing bit the probably markets and a kind seeing think urban at you,

like that, couple So, pull you bat. think a on a right we back weeks off can X% of you see a the pricing change in about concession, that’s when

feel way, we significant the cores, by a any better quality felt, So, what which from do no is to life. the real change signals which of than yet have urban other

both now on are right You see the could these placed cities being in efforts of that it.

feel price But have pronounced the You can those still you improvement urban there. just more in areas. sensitivity

Chandni Luthra

Coast? way. top very that helpful. forecast are detail. a in follow-up, completely not it would And growth that much territory that think you stuff. about you looking growth color job my I’m I That’s bottom-up level West your on in this that there, look as you of assumption? you. not the as delta of how lot markets, market job if one know versus if sure positive we is something overall sort different Thank And what’s market I look And what’s be for about your bottom at? guys do of you then, appreciated. But at guys you still Any there understand you Are at think guys

Mark Parrell

to Yes. numbers. little Hey work among national analysis and different the impact -- job job lot foremost like term. and the a on don’t we’ve near do household bottom forecast understand and at numbers focus to more Chandni, Mark. done a as it’s time We forecast, We income up. and particularly spend of variables, especially relevant the how do We our in them, job growth, try look regression our the

process gut out that we from of what potential of so numbers comes there top the in of do your down, kind and with check others forecast. the And perspective put firm bottom-up our as terms both out

that on that a we model spit numbers. would have rely But out would we don’t

way, too variables. than looking a at that the have many I understanding of just from of drivers we I’ll confidence models. than bottom system sort better you, feeling We lots being one that your your market, business and it much And those about don’t local local reliable. tell tested there’s back us to to think more be of thinking supply has up, proven employment,

markets about feel report last though, So, growth in job employment really generally. good, week was the mean, we I terrific. our

it’s said their a remarks, been And number I of in they small have people, found positions. lost when handed as handfuls residents, Our very they’ve keys. that literally us work my their

this if -- the far. so pretty been to. us one a it’s ever is recession, well we’ve this going is best And for it’s So,

terms to job top-down in with you don’t inputs. have anything of I So, forecast share

Operator

Steve we’ll the next our Sakwa Evercore go ahead. line question take with of And from Please ISI.

Steve Sakwa

Mark, back. edge keys kind Or people to about stay the concentrated that there maybe in the you comments of work and other managers back, finding in any more just it with that? handicap and on haven’t the on you and about there’s bit one keys market question would are are sort discussions of getting how tech markets? people but where given conversations Is a your

Michael Manelis

Yes.

is So Steve, this Michael.

a the we change, but less would it. reasons kind and really if on fourth in lost I And early two have I understand And out, said dozen. teams, think if this we quarter and always So going their went mean, it’s of And number, we leaving, like that the to I or in the say they’re tracking Seattle quarter, talking or that’s across and spread deeper say kind than for say concentrated, started back you small the country are you one such of I only why. third it job would really end they guess, of that like just that say is come a San the market. move that in people and when job Francisco

conversations employed, they’re And we they’re feel some to tell concentrations Seattle or when overly Francisco, So renewals they lost be the they that get clearly, that there’s with going job. folks changing in into that you San gainfully some and it their the quickly. that anything. doesn’t like they’re not But of seen really us haven’t jobs concerned

Mark Parrell

it’s And Steve, Mark.

Just on bit. to supplement just a that

low, Our are transfers too.

spread of websites So are to see we over were some want like layoff, and that whatever jobs any little don’t financial firm a you and can down I country. whole and announces be lot markets the you’ll then in size. governmental and folks filings, like tech spread we’re layoffs, late, to the various people going our things New local a a We a layoffs these meaningful did indicator stress. the When a of of these an see do the San similar, tracking research, And asked unit share. or these Francisco, cheaper I what either believe that is filings using York. seeing Seattle, just over sometimes whole of also something in We jobs the country that using like dot, that

XX% we’ve the are country. home company the rest market Area Seattle to seen announced company that all spread of a over a in generally, or XX% Bay and those are layoffs, So

sort So I think tech the what in in think now, and that past. Francisco, layoff you and definitively I, it right, just recall Francisco, from it’s ‘XX was than employment of person diffused much where a I if picture different it’s more a was you San in San had

Steve Sakwa

your for for guys projects? Alec. changed you market or development the How then, And where have maybe IRRs just you transaction Great. for for think color. of and circling is start underwriting, on acquisitions new to do for the today kind any you that or kind both be guys Thanks market it’d of whether either back you growth? And

Alec Brackenridge

Alec. Steve, is Hey this Yes.

debt a And really still We before, around rate that IRR and find Longer-term, X.XX%, an a that. to to little cap but be that’s market. expect at of to today’s to said hard is there, as X%. X.X% would is So, our X%. look that think hanging to here cost hard are unleveraged few somewhere on a just And on or opportunities above there close make numbers be about I in a There which are we’d to I sellers end. might largely, the movement work. of

a X.X% rate and to And lift. the to prior to -- X, continuing been,, to that X% a were pricing now that is the they fast most the deals heavy from up out rates spread but to escalating getting at closer costs around X, not not still as below that and of at be anymore. a Harder escalate, are they’re development going when hikes development should with be to nice that’s X% deals cap thinking pricing properties a probably was X it’s case number then month, say, pretty price you’re used is they really as whereas to hard still X.XX%, were get if to around had stabilized X%. and X And month, Obviously, about to a yield. development

a is typically, the price come can there’s that because out entire much to so land just the lift. heavy say, a deal. to of XX% land getting So And is of XX% the of X%

lift heavy there. a it’s So to to get

Operator

take our ahead. next Kim Markets. question Please line from we’ll BMO And with Capital John go the of

John Kim

bad calculate to there are bad be was On it a funds your basis gross relief XXXX debt, resident debt the think Can of likely in We this what as X.X going much year. I’m subject going but other be clarify factors you given where not year? just the this in there’s you there. at to to on X.X, it versus is sure going

So with to wanted that I clarify just you.

Bob Garechana

No, Bob. pretty your it’s John, math accurate. actually is Hey

drag did I would to $XX a work kind We to, perspective. X% So of were million around a based X.XX% the gives -- the that the as bit like closer does probably little debt, X.XX, percentage store, on when have add to revenue a as back revenue. And of bad we that. and that net. page percentage on you that the move on said, math XX you of same X.XX is When out a then forward you to get you

guys triangulated you it got So have correctly.

John Kim

miracle. Minor

what ‘XX? So, is? where where do it normal you to remind in see you it it’s going does levels? us normalizing, saying Can that you Are go back

Bob Garechana

Yes.

quality difficult even this been the is that around remarks, typical. is been projection kind just kind long-term forecast et it that that that fair, of given points, And to seen my that likely be of And outside think basis the we come. in do too, outcome. of improvement XX to relief would still cetera, normal the of have of our would So, have we resident rental will mentioned have as fast I very is how base,

We’re are than put numbers, a great is but basis is when you’re hopeful could us XX correct that to there math it numbers, it’s points but we works. the in and that only get faster not as the closer to to and faster miracle, than as what it -- quicker that minor in what

perfectly So that your in works specific math numbers.

John Kim

one Just follow-up. quick

other needs secured to debt maturity on on Is that said that You year there the it this million that market. clarify be is in because are $XXX just or Can factors? you refinanced the better, comment? pricing

Bob Garechana

of of structural financed was that kind a It’s acquisition. a structural. the debt piece to it’s No, protection component. actually tax related It’s Archstone

certain protection. Archstone tax there old in were had So, the that structure partners that are

secured, So, we secured a why. and have maintain that portion to of obligations in that’s some debt,

the the look debt secured little As markets bit. you nothing about you the think has it relative that anything kind a about unsecured, piece. with the has to kind unsecured do to When -- come do so in at of of structural

range, more pool. this for like secured product So, pricing especially in than slightly in favorable really it, secured, low have -- but they’re levered the we call had in it’s that, we high-Xs like the all

a market more of decision a it’s So choice. choice. It’s not structural

Operator

go Stanley. And with Kramer Morgan the of our next we’ll take Please line Adam ahead. question from

Adam Kramer

right, just of Hey commentary seasonality the guys. Mike, you taking I Yes. I for question. of kind But basis wanted a among lease the at quarter. it. I mean in seasonal mentioned, little XXX January, the it’s Look, than I I -- the release. kind the you in is maybe strongest points. still kind group, little positive of appreciate ask time, bit new Maybe January a about think fourth the Thanks same right, commentary. bit think to worse Look, the

happening in or So, terms these blend different and to maybe lease loss, seasonality or together, strong comments the things to try fundamentals. things right square and of tie all kind now right, occupancy trying kind kind new with just of of of tie together what’s kind those of the

Michael Manelis

Adam, Michael. Hey it’s Yes.

the like to So, numbers. quarter I January not the to I to fourth sequential you’re what referring December looking January, comment is release, think to would I was into when is one, look the

So, our occupancy about December; right? flat, I we’re in held We think, were, occupancy, XX.X% or XX.X% when for actually XX.X% you think January.

returning quarter. about look think to is seasonality, into common you trade And so, at down as very occupancy for that that to I and say, it normal fourth

up we being would because is when pricing additional that week in back said, you ticking what outside rents see get what after see way expect doing what expect. rents normally of got consistent of sequential the the and and in emerge. what application an you we January, with little some January bit like you some of concessions we that into very improvement said, moderated that the pattern started every kind pulling year, volume the So the we corner is pressure And new of you would to That that concessions, described, in we you saw a I the that do. accelerant, turn of saw would and urban is demand it I inbound right

climates stall kind the of cold like Now, to they is York, weather what’s like in February. interesting Boston tend and New

Jan in hit and get it you off the then of leasing races for you’re kind March then and You the bit spring stalls a a little of to then season. and boost

you looked you the So, if to into would which a went something that season. I just year, ‘XX, leasing commentary of year that pointing weeks or and again, expect the and ‘XX, think we’re any would us like five years, today, seeing with tell trends was back normal at a these very I we’re my is normal consistent spring

Adam Kramer

Great. Michael. That’s for color, helpful. all Thanks that super

bit of bit be a kind of given probably kind to switching are of Just burner a -- little it’s the of was If more kind in in to much starts you ‘XX going environment? more the but kind the your of the just comments. business, your kind now there? or know mentioned mistaken, little of on do I’m maybe of development. opening I’m it gears the in think I not is peers. I some uncertainties biggest there of not Are obviously wondering development don’t thoughts part back that what some than your

Mark Parrell

Yes. Thanks for Adam. question, that

the started as JV that and smaller well we’ve $XXX built both development others. in-house terrific team, towers as then and a Toll million the with got have We team much And projects.

development is a complement our think in these expansion to we nice markets. So, acquisitions, particularly

the partners given of can sort on little be structure will that teams start next. that better, more instruction be bit work Maybe that sometime a have little I is late well internal cost this the for things outside the more make we few find The year Alec as sense. little next a months our as will you and can both will underwriting the reasonable, maybe maybe our a capital and

the too your to in make plow sense. opportunity to acquisition start. we’re like be thoughtful few a into We’ve got involved about money do, we’d the let’s going our inventory put I just alternative lot are or to shareholders’ already is be so, the deal costs risks of not is it’s feel to really love cheaper in you now ahead got but if mean, and And significant. where things But to the right if starting tactically a market. sort acquisition we’d just like just a a and development likely

So the just have don’t on answer have strength. them. But do balance to happy the to question We us. of important year. But don’t in for starts any this development, of we it’s either. acquisitions, to budget sheet really your like Bob very commented we’re any about plenty those

good thought support to would markets debt if fund idea. a big was EQR those, the a either we think I of issuance that

have something So, others. it team, the got keep on we’ve development zero, side, it that too, if decision said, just right that’s that we can at Toll the watching And put there closely. into got we’re mean I got if we happy the to the the like I we shareholders. for But internal there’s folks, gear. comes we’ll

Operator

from next line our Haendel question And the comes St. of

Juste with Mizuho. Please go ahead.

Haendel St. Juste

up a on Hey. follow I that just to bit question want last first.

term trends normal with So for spring leasing you mentioned. understanding curious that rates. imply more as guess, this comments early season expectations season maybe for pickup lease I’m in and would new line I the near about your what on historical that

color the into So normal how on spring rates for Thanks. here historically, maybe some season? lease that played trend more that new out give what could has mean you can

Michael Manelis

Yes. Hey. Michael. This is

to curve what see change and moderate as start what seasonally somewhere sequentially is then look the grow new out will that quarter So is about will max will of we will right I to would now think typically year. normal to the way think you the lease a third like get and in modeling

blended our bell curve. little it X, change we a -- For is in kind across of like are about X.XX% -- X lease new but of this basically a over the assuming of assumption rate like year whole it’s

work we’re We’re to and spring our then and going it going it to let through moderate. the keep way building

think on have some at we to of about January. lease, in you renewals the renewal loss good increase capturing When pretty achieved X.X% a numbers right now, some

moderate we’re first would then the I’ve to and the range days, expect the these normally X% do that And a of next in in this half half quotes XX back year. going like like got into X% expectation, to would year. X% Our to in the X% somewhere it I number out for range stay to of this

factor, X% to that So, getting on likely of about it you winds put a like retention think the up full north you and together when model and those somewhere that just of guidance two puts renewals you blended X%. rate about

Haendel St. Juste

really New expecting San that contrast West stronger year? the regions for expectations That’s Boston, Coast weaker I on Coast, Francisco, York, between do East Maybe color. spread the spread of D.C., of appreciate your some thinking helpful. in two Thanks. some some this markets, how you’re two curious between those you between or -- to what color Seattle, those the the

Michael Manelis

I’ll Yes. kind the bucket Well, just maybe around. of markets

then think bad a X% X.X% range San debt growth then with the would north be this growth very X.X% close by I and best it, I market well. we under in we’re performing the and other all really in it growth. at Francisco and those remarks, San around you a both to and Without impact. markets it, County in just I said expect L.A. York, this of X.X% has our to New X% of looked prepared Orange markets, almost to bad of right of revenue Francisco range by debt mean, And Francisco, followed to Diego is XXXX. them So our forecasting closely just into as be of you moment kind I’m if the L.A. that But L.A. going implications. as San bucket a well. could the X.X% put But aside really get San because and for you now, Boston for

Operator

we’ll with ahead. of of question the And Jeff take Spector from our line next go America. Please Bank

Jeff Spector

a its has and team the second uncertainty ‘XX. the Mark, again your econ Just pushed the wanted once to macro, our I more, bit of talk forecast little on out half recession totally understand about comments, for

to things that systems shift it’s to telling versus the -- peak difference management leasing So, the operating you’re if I a go you how peak second revenue peak do look through start are how how into will again, make approaching guess, does what like macro just the half, weeks by, you going thinking to it leasing? of the and like if be as about your looks leasing

Mark Parrell

lucky it’s the the to then Jeff, Michael. and I and Hey I’m we’re over great team I’m very start. it both turn a experienced in and here to Mark. have here feeling markets. system across mean, a for -- going country, going to to Chicago

seeing don’t a submarket macroeconomic a -- market asset, So, we improve, in when We wait when data. we react frankly, we seeing start real start we an time. can react deteriorate, or a market or for

I what’s we’re think on. going So, those of ahead that. reports we’re all aware But certainly watch We employment of keenly.

feel our in one, the think I again, lost the really that new leasing that. someone The advance. we show they take got unemployment in time job to reports data good. been Because immediately government’s if have a may and some

adjust I sort have time. depend management of on a So real real say, going and the can elaborate and through go to time we’re in a would minute. revenue great and great what’s I on on team, year, I site that Michael going guess to communication on he process, in his see we in as

Michael Manelis

that’s and looking bit think, ratio, making see try rates I of then the not decisions or add ourselves you clearly, or at soften you’re we’re what And we’re that or sell. rate going you have would position how and letting not leaning little and getting out, kind Jeff, Yes. week based units application or corresponding week is that the to going thing kind that whether on whether volume to maximize And a which of in, many in is that we’re differently. typically rate you’re to to the only you’re I need rate on closing to

that they just of up I activity, from rate that markets. these down or that doing, ratios, it. whether hyper they on And absorption moving size, tell the that issuing velocity to are is alluded they’re going demographic course, supply us have, to whether think that income we’re is us then, that that signal activity. need roommate not on or what concession the they’re we’re And to we’re size, of new because of But, supply these are more changes, you volume pressure in watching before, they to less watching a in we’re focused getting transfer Mark feel top in feel going

Mark Parrell

Yes.

ranges. Mark up of I It’s renewal Just has business again. to the since I last started overarching the to focus feel thought. a one we do think his and retention. economy mean, some about on little been opened occupancy He’s mean, running add shakier, Michael with themes. ever a

the inform of more than we’re but -- to anywhere to in on-site, and that’s we we U.S. general and these else. from going macroeconomics So, do some learn economy from numbers important any feel us does of what set on quick coming leans what’s

we you than are those places tell like so York picture that a place in where also will and about anxiety might more like Francisco I’ll markets our more Boston, places New downtown lean the good the aggressive So feel where supply heretofore jobs San downtown and picture we be have Seattle. or

property. we what’s by going some of on watch the like again, property decisions, inform Jeff, to But do those picture. we big with So,

Jeff Spector

Thank That’s really you. helpful.

think recession to scenario? to the just upper as kind guess, out range, is guidance and end of the pushed So the second upper that if half about of we of the then, this I confirm half, is the guidance the range

Mark Parrell

pretty the part claims good what and are recession where’s if still mindset numbers of bulk the we’ll much into I’m that And are July very I’d the a the good the and economy? really low, guess, and get August through have pretty season of of Again, year. I say the we unemployment still and job then leasing

for roll the year March, industry those to little us is feel apartment then to different. going feel and start you If numbers the in a everybody in else over

Operator

go Please Nick the ahead. Yulico take we’ll And Scotiabank. question with line next our from of

Nick Yulico

Thanks.

not you First as not buybacks? as thinking you, for you’re potential fair acquisitions question, free harder maybe after for the about dividend. is to Mark, of I stock amount flow do are you’ve planned mean, now, much talked have a you guys -- how about, pencil cash

So, sheet. -- low leverage balance

you already fund trying up need the stock in to Do become So stock some that, buybacks compelling? I’m just asset buybacks? to handle a or the balance did way at point sales set to sheet understand

Mark Parrell

a versions that a the we both I had versus The we’ve for of about conversation is this it Nick. stock Thanks of mean, thing question, Yes. investments some make has before. unique have I because buyback REIT, lot and cash and we we a distribute capital a don’t mean, of flow capital impact. allocation we’re income. CapEx a structure heck our retain a all after of whole other to

multiple. all your But multiples, of look have So, meaningful school, multiples. we now. -- We’ve ratings, you meaningful got time impact more a one and riskier with you’ve at it, amount And there. our you lower we only space affected go incur to to make We for mean a it’s have company your do whole that less debt, affected either in learned I can do right that. on that a can size, you’ve business a before out incurring businesses debt

well side So, possible, it XXXXs. I of team you bought the over a Alec done has years. tell asset the his and risk. debt offsets is lot also but on mean, is have And We’ve and your sales, I

lot gains. So, embedded there’s of a

an million deal million You of have to million, gain $XX and $XXX for with. might sell asset $XX

flow cash needed distributions. of lot a not so, after either there And

like it material discount to as, it’s talk growth. see Board the stock and about at as. markets the it’s all proven meaningful. periodically, I’ll we watched have But So, comment it’s last see we the a price clear to to of use of signal sort stock when our is away turned when categorically size, that usually very Nick, But out amounts do tell equity fund not meaningful from a table. don’t again, the hasn’t to to not is sector. it now that’s you, And more in you it well. to And NAV of we such it’s maneuver. trading terribly is us. a That’s like lot buybacks off of not back And And if REITs our I’ve do financial buy what a it

giant is of an it used I some equity when as issue on think than go it’s to whole to not indicator buyback. hog better share

Nick Yulico

Okay. I appreciate thoughts your there, Mark.

whole we a -- I worry not there’s, next over a to rents some impact, point, relative about And guidance. But an so impact issue is that recession some XXXX think to to question company, and so, sector point, now, multifamily, Second right? revenue. the at occupancy this or it’s I going have it’s there’s just, at year be if think if the going your think much right I and the

out more about is, -- multifamily. recessions trying are the is thinking question, impacts very I’m unusual way tough terms could of sort to last a two had what much what -- to you in there this recession or order to correct so, -- How magnitude of figure downside any correct? were to maybe is a And much of normalized there about how but we way in could and revenue is impact guys is or or an of a any your NOI think rents company how

Mark Parrell

just Yes. that other I my few on economy unusual. guess Obviously, huge whole crystal ball thing is as out just terribly excesses just you mentioned, I’d or the recessions, in very make were like I lot of that. we’re don’t a of blurry a these feel a made I whack. pandemic, recent there yours. the comments as mean, as panic, the like

feels jobs it jobs any slowdown more out like we as will XXX,XXX putting are type a opposed occurs, in negative me it recession to month a like numbers. some, be that So, to

like if the relatively and think what inflation comes a We well last will the hedge. to our been around, put or XXXX is better going in so. the feel also I on about to So compare We’ve perform you book materials it downturn I certainly than business that. got in good typically pretty economy. else

going have inflation And of managing and excess expenses. if a and the slowdown going kind economy, have job great our rents to been business of inflation, do continue you think I to has mean our team his Michael to able you’re to in some in in a business. the raise of you’re typically, So, rate

we little inflation, a again, bit look company we maybe relative think I growth our economy, well think of expenses because, a can a on basis do slow really So, I with still and manage well. in at at it I

one little boy, sure, be is And nobody I to this predict, I think or excesses dramatic our next type the and and numbers that. about more gradual. and reflect agree if a year late for next downturns likely will I think it’s is there But hard to really recession, do less knows right?

Operator

question Sandler. Alexander And with Please ahead. go we’ll take Goldfarb line our Piper from the of next

Alexander Goldfarb

like Mark, has bets bet affected the between here the been summer not making we bookies could Super Bowl, or recession the on leasing. have on definitely whether same seems this

we’re topic Two all a watching. questions certainly here. So

importantly, obviously, White are But far President lot of The apartments fee as recently, the a under is first in the lot more of regulations go focus income, a question on Union. State regulatory mentioned House, as of already. it hotels the

guys are? that regulations, is you’re fees you some like, you or all you could abide covered, as there these all the regulators harder the stuff, charge, items? stuff you line that, through your and your all the that new on And by that as fee of income you fees, look, where So, pet push we look feel comfortable a already think about is the guys with concern lease all do

Mark Parrell

to going I’m split Well, that question up.

A fees asking comply that of you’re like you do, ton are doing the make rules, can’t things makes of extensive now the we hard complex on way, by we legal may and to very judgmental. harder we think sense. really operations do. sensitivity. you But think charge are right we unfair feel law a that for They worked us or more has regulatory what these very with with because We’ve lot team sure say done reviews If right there’s we we’re the like whether peg. now, that to

total are talking revenues kinds fees about Bob of you’re or percent about. Either of could talk the what Michael

in it’s that neighborhood. think I X%

higher. and property. like the it, mean deal mean, are with of meaningful, faster it’s if to pets I fees, it remainder had But cost So But it. portfolio. than the moderate things much pet to costs can cleaning we again, we’ll create grow I the real the

in these additional in one and the some are will that cases, come just costs profit or way another. cases, So these some into are system

housing. all help these A not we’re into front, it’s this to isn’t to going is So regulators and the capital going on and have lot about with shortage just regulatory going this good affordable residential the discourage all stuff. to conversations with going of thoughtful of

that more push we’re to and of conversation. and kind more that going keep line So, having

idea. why borne a sort fee really shouldn’t entire the borne one But complex, the someone’s cost good side, us, it’s owner pet the to of that of It’s on opposed it’s example. be material those the for of as to by by not another just pet

Alexander Goldfarb

L.A. -- makes question and deemed eviction, anything. one this cause be isn’t reason the month? and No, of that pay Okay. seem not the not was that than I Is in that the get correct and be a tenant good thing that free sense. And is someone other this, mean of is, a items, unfortunately, arrears L.A. that sure no a that could correctly, And be the understanding? if and so, recent fine a free month historic? if for county read for adopt bad cannot then is does elevated second a to make can -- way to basically or in just getting hopefully, month there if they Or sort other now debt hopefully landlords markets to be versus it

Mark Parrell

on permissible is of in I market have. resident of amount question. in But -- a that the a average rents $X,XXX, significant. there general Yes. Thanks approach I don’t me. again, have but that that a read right defaulted bit for debt default front that sort little our of lower, did idea that could they’re

we’d -- have that, another a to gosh, was a thought, month’s it it limit, I’d into look not dollar Alex, to if have limit, rent dollar but So limit I was a conversation. have

is had just about the bad it’s But will things York and more the and good people or the supply industry, more like that more the create localities. The the Better that’s sale and hear rental some renovate industry, the have a the zoning work capital into less to really the being we’ve pushing about regulate the here administration’s you And us. housing. units to team on and When Act and and I to both And idea, flexibility stuff this, you Back think this. go encouraging of at New Build mean, theme Biden trying terrific built I California talked administration, a pushing properties got with Governor for side. been of Governor

the are got I just to It’s constructive. So lot people because are listening of keep you we think up mentioned just it us. ideas a to not there

Operator

And question from Suisse. of our Sam Cho the next line we’ll [ph] take with Credit

Unidentified Analyst

cal Tayo Hi the you for keeping going. today. Thank on I’m guys. for

us how just the guys I I my go see that that that. supply that from But think remind about, you -- new colleagues pressure. So, guess, Because how it’s know of it and from hard into one I can former threat how of to asked really you judging the -- was kind and competition factors exposure? portfolio our end, about

you understanding would kind qualitative from to quantitative of be your judge our guys how interesting metrics So out or hear that frame standpoint. factor to threat

Alec Brackenridge

the than, California. rents. is supply depends where to grow of mentioned And earlier, tighter that’s it our the Hey are. a a yes, proximate Michael to And on we and focusing we find where really lot do looking say, the ability And of Sam, In on pressure we’ve proximity supply, Manhattan, time supply as Alec. it’s spend gotten in we our lot at properties.

there in and we’ve this is -- adjust XX,XXX down -- our going what are -- is that. portfolio XXX,XXX a property was we us bit And units for seen down again, past and supply proximity going going our that XXXX, a And from like from was around So quite was to sorry, properties and our quite proximate to I’m bit the from average there. it’s there. the in units, and proximity

as a seeing way with we’re that do supply, level lot and So proximity a the that less to whole. has market we measure than more immediate it

Michael Manelis

Yes.

hold one I one well. that could like like -- doesn’t add like is just markets In Michael. I’d think radius the mile thing that transit, have add as there’s I this good thing. because D.C., we found such

So wider we between we’re markets just will some assume people would that say transit. net and going that a markets, cast that much because of move between to

elevated with we buys this has management deep officers view. in, doing of market on and true. input, then the hold way demand of strong, even use, rule and really if with matter. it supply And a this we in and doesn’t right the get their thumb team investment ultimately is a ‘XX found seems consensus every and ‘XX property inbound that and like been to we So, drive go drill and the we’ve have for so to in is their weighing What doing us, we given like top and that then time, long it

matters. rate absorption that why that’s So,

Unidentified Analyst

color. helpful really That’s one for more And me. then,

You touched concession on still overall being elevated. pretty

have draw how what season past not strategies can leasing are Thank during sour? a a from equal. know recessions all I historical whether context, recession? And But created imply looked things any we during from could the lessons to go spring So, if you. happen concession

Michael Manelis

Yes.

in stabilized don’t So, by them. know Michael. to is of concessions the I the would if portfolios seasonality periods dollars this recession I to at shoulder That’s the just what Seattle look form market. is of have signal, the that some front guess, concession, like period rent. we it’s common offering I XX%, concession that what back across the San basis -- very in that previous -- hold that strategic of see to the quarter base look properties of in at spread me you understand we’ve I in XX% a or the Francisco, is are up some see are where urban used -- to where compete seen in really in of right, when a And very something against that and of it cores were of

demand clearly, I is dial back. like we’re softening. news, seeing seeing it good the said, Now, we’re And

in back wouldn’t a that concession You dial feel amount.

you, at say for that. I maybe like they hard how me you expect would level. in hit back, volume will I tell to frame sustain dollars. hold But It’s would would I both dial a guess this continue if Right and recession obviously, you now, So, the pretty concessions spring? and significant period, to

Operator

take Probandt the Ami And ahead. UBS. go we’ll from Please next line from our of question

Ami Probandt

Thanks.

in New you your compliance XX requirements York are on Law effect impact the any for have first for of the take The XXXX. portfolio? with estimates in Do to Local round City scheduled

Alec Brackenridge

reach and that, Alec. over well. another that impact don’t we We is as Hi gets looked towards an those working right know, we’re thresholds. Ami, at you it’s We’ve have ‘XX as time can and benchmark year, challenging, It and now.

it’s so so owners but get So, far certainly over good, to more time.

Operator

question-and-answer to statements. turn session. the call I’d for Mark today’s over like closing Parrell concludes That to

Mark Parrell

to Well, our we’re can long-term excited, prospects, positioning, and we’re looking a Company’s you as really about call XXXX XXXX. good the tell from forward the delivering

So, thank in your for time interest today all you and your Equity Residential.

Operator

This concludes call. conference today’s

disconnect. may now You

Equity Residential (EQR) 10 Feb 232022 Q4 Earnings call transcript