EQR - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Equity Residential Third Quarter 2024 Earnings Conference Call and Webcast. Today's conference is being recorded. At this time, I'd like to turn the conference over to Marty McKenna. Please go ahead, sir.

Marty McKenna

Good morning, and thanks for joining us to discuss Equity Residential's Third Quarter 2024 Results.

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

and posted presentation section earnings management Our release are of in equityapartments.com. Investors the

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

turn will to Parrell. I over Now the Mark call

Mark Parrell

the of our solid and a consumer. ahead new take discuss go transaction in Investment Brackenridge, Thank Manelis, which little which is our Officer, our Officer, see and and good will speak continue supply we'll we you driven you, both constitute . We low outlook Chief Michael will Marty. steady, all then for will growth in Good I third our morning, us Operating customers. start the competitive for and healthy joining established wage your posted our of by thank demand markets, continued performance third XX% our questions. Chief us quarter, overall quarter is today then And do operating market. our Unemployment year. performance, Alex to recent then our environment and acquisition results XXXX stable off, well portfolio. discuss of for picture, a Big the Blackstone and and to to

moment, takes puts operations the and we Michael saw the our a will during various In in quarter. to speak

came lower expectations. retention exceed saw some like in we terms like our blended the and others our usually occupancy is case, As of expectations, while in rate items

variability posted on pricing the Page in this you to is of type X we of As website uncommon. not last can night, our that presentation see

XXXX. revenue with remain normalized guidance, and In track with the expectations. quarter seasonal same-store we sum, so in our on expect the a to consistent fact, far end in position In has fourth year our for and we patterns pricing with good

machine terrific thank across for On churn quarter organization to innovation, for cost same-store year I side, X%. control to want team to of for of X.X% the expectation and expense full our growth the the the same-store out the continued focus expense events with our our continues results and growth customer. on

to economic and uncertainty, that Turning considerable and of impact setup. economy remains could our our there XXXX, while we generally, amount a the like business geopolitical

of our XXXX given at We on thinking are some X we for presentation. management too XXXX through same-store on but revenue preliminary to point, early the this insight some guidance of give inputs into have you the X Pages

our produce less same-store of lifestyle revenue preferences and favoring In in think supply for the steady solid a XX% Equity and from housing. cost a supply sum, Residential. rental well-employed XXXX we should established markets We picker affluent results favorable renter base, the continuing demand NOI and

negative new expect do In levels, and a occur in concessions see during currently leasing given look lower next lease terms not markets, see will supply rates in to some revenue highly same-store our high continuing expansion of XXXX, but recovery we season. until improvement we to year's that

the switching well-located newer, expansion Dallas of our accelerated markets Now allocation. to in Denver and of our capital over assets We in Atlanta, quarter. acquisitions third

assets assuming a detail efficiently and income activity. stabilization acquisitions. our demonstrating acquiring smartly with development. on more We We declined XX% supply approximately highly strong as now at of of In give equity The over are as the also team and to few years. levels flow we properties favorable excited Alex forward transaction expansion our to see integrating you competencies new prospects under our will our in of operating our acquire entire that looks basis substantially growth a these moment, next cash have markets properties core net add

is are of will of use moment, source by I mix the space September. debt the would $XXX these in one be issued XX-year replicate and paper fixed XX-year We of $X.X detail did activity on in were debt, our the million supported want at to rate rate These is our raised give acquisitions the expected a The lowest you disposition coupon dispositions a hard a and credit. in commercial Alex XXXX, In with since to coupon we REIT funding today. highlight the billion year, uncured acquisitions. this funding line fixed notes which issued in of X.XX%,

and his this. team So on Bob a job nice by

on note strategy. a our capital into quick overall fit Before I where these allocation acquisitions close,

Our demographic the well-earning flow risk growth this goal amount volatility supply, our XX long-term account cash of a opportunities renters has return and our the remains the lifestyles and with we and on and We people in total operate long-term this that the think and balance industry-leading to own or intend to that have into least highest of the areas achieve demand, focus and with desirable best catering goal an so in taking for we the possible. apartment to with and by sector properties resiliency risks systems. present most efficiently where metro can regulatory portfolio

risk market. last list the few have there As years apartment shown, no is

the better we our many for as Sunbelt as we dead well of left Northeastern which markets portfolio The coastal are see strategy the suburban investors, growth markets to and of balancing results select commitment markets, locations. expansion recently and our and were and markets volatility between our our seeing urban negative by in rental strong in reinforces

XXXX. supply-driven growth supply In Northeast, portfolios to those same-store revenue markets our We generate play our engine more all better should and the expansion weakness rev same-store supply years, continued strength Francisco, picture in company. almost markets, in continued will across expect in in of markets markets our more our in be and with of results, for our established a the markets. those which, along than later wanes particularly Seattle the offset XXXX San expansion favorable should urban uniquely the this benefits of strategy the balanced out

term We coupled our years. for are our with geographical eager confident and demonstrate the several balanced are will over over investors, operating next this platform this long create strategy, the efficient to value

with Alex turn Brackenridge. I'll call to And that, over the

Alexander Brackenridge

Thank Mark. you,

As ] to on in Dallas Atlanta, we Denver. call discussed increasing XXXX continuing reposition in our [ committed markets portfolio our by to expansion of we to January, came presence our our and

the the half year, market we and made progress. of For first remained frozen the no

units of quarter, the closing our $X.XX owned a on of rates in a price total the up activity, third economy landing and stepped However, X,XXX dropped billion. assets with more soft evident, up as became in XX the for we significantly possibility interest market and over

commercial for combination averaged Those $XXX The a old of sold Mark million acquisitions funded that from XX the $XXX located by the mentioned, and $XXX were assets X proceeds in yield. consist million Boston and issuance Francisco, disposition years of of million dispositions that Washington a San and dispositions paper. in X.X% D.C. bond

of and was strategy noncore are XX CapEx All holdings averaged tailored from rate. variety significant needs our quality to actions just combination a locations. operating portfolio all assets the came an The limited X were challenges. meanwhile a XXX% years in of that that pension of retail asset and had Blackstone off-market terms in market from fit have of old,

than provide execution, process. us typical and execute certainty to to our auction directly Recognizing ability of the Blackstone chose speed rather deal with

numbers estimated they quarter, allowed closed for because anticipated us to relatively purchased one-offs an that appeal below approximately in with transactions asset on affluent million. is at of merchant markets attractive for cost. building. $XX.X low in presence we After us all X X% risk of average growth, These increasing IRR. job other regulatory end XX% acquisitions on unleveraged The an expand X% generate and The cap an our additional this replacement to activity is were renters weighted to was basis the rate strong Atlanta and

markets. Admittedly, to on outsized these environments amount our reflects the also relative ownership depending approximate income of leasing flat rental years competitive coastal down X of our deliveries. seeing or for supply the first underwriting Accordingly, markets are with our

on by side revenue assets We to will the as Superior of expect offset operating expense our and we them some back that be these more that into running efficiently platform. NOI integrate

pipeline purchase more the at and attractive assets But the likely We time, price will at lower replacement less on relative be further will in to at supply horizon. XXXX that in these growth pricing up opportunities anticipate rent be to a cap is costs. and having robust markets as rates

in under head asset Atlanta, And the a in contract ability quickly acquisition Dallas we capital As We year rates Denver. we to plan around of sizable number a currently see advantage the Atlanta X one to approximately to close for $XXX XXXX, into end the cap. and totaling at million continue and of share cost expect complete cap an around and X and the to due expect opportunities of leverage a with at on before the attractive diligence year buyers close of end activity. to transaction relative have to

Austin, competitive on highly is things leading sidelines a we it expansion rental only when to market X stabilize. deliveries in will a assets amount remains the hard market, with our historic challenged have is fourth that where to resulting us stay of given assess

the as a have we approximately the to assuming portfolio that and in favorable, market if of next stabilization to goal in months. deals XX% expansion XX% remains markets, development With we recent to of Mark XX in our over achieve towards his progress, of our closings now comments, expect our XX% noted XX transaction

is excited XXXX. of XX% coastal where supply in more markets, over X are best forgotten, supply-demand down that down our to should dramatic however, XXXX we in next supply we will are job markets seen declining being is after have to in starts growth again, not XXXX X high anticipate markets add be nearly our projected With even over balances years. a one long We time. reduction What starts that to the very in see down exposure the in to be the that these in coastal XX%

postal resilient and challenges. a supply, expansion market and growing risk-adjusted Our our returns with generate customer to out a income presence catering with shareholders, exposure, optimal our while market positions us for combined to regulatory resiliency balancing

the now Manelis. will over to turn Michael I call

Michael Manelis

the like. to our for and as joining will Thanks, what quarter Alex, year the look expectations XXXX third the setup today. for everyone I thanks This us of performance remainder could review and as for XXXX well our morning, operating

business As our solid. remain Mark fundamentals mentioned, in

markets, strong and focus lowest our XX.X%. our the remained driven achieved on by of these homes supply our . In lease of City low pressure buy inventory the rate It us from primarily lease at is at Los strong growth extraordinarily rate, uncommon variability it Blended new markets. quarter. resident to expense existing strong time. to change the our quarter, turnover of lower-than-expected and the in important relatively quarter, was over our continued led in third renewal to ended end up and our the physical reported pressure in third some short eviction-related of has new which both corresponding that the from is also customers process remember maximize low expectations quarter Angeles markets. the serving Move-outs for revenue, led however, to and and occupancy excess rate periods the expansion across of to from came new see often renewal During during occupancy not change to history, most prioritize

a new have For quarter in in volatile far a usual for seen than this the statistic. we quarter, so example, we fourth steeper change saw picture and lease decline while better the earlier third and

in. income occupancy of our higher maximizing Looking from we But new should of in into quarter. above portfolio are also negative at drive reducing which have positive position change achieved at renewal revenue maintaining the and improvement, will rent concession We heading the pricing along by good both net and which in lease fourth contributions point, quieter with solid of the of net. are Seattle prior level including results. close is strategy to easier relatively effective still rents the deceleration performance X% early to seasonal at maintaining And comp normal remainder here have other debt quarter and seeing stable fourth note, signs usage. occupancy very a of year, bad strong Sitting year and today, in months year, Francisco the result be our shown San rate this anticipate the a the

XXXX. 'XX urban consistent The the stronger East and me performers performing the is Boston XXXX. in on let the you portfolio full starting our but of suburban market the with color market quarter. portfolio third urban of expectations, will with and portfolios our our very of Both new supply for Coast. give Now best year our our We are little like produced here well, one results urban-centric remainder see positioning competitive in the as some

little said we out New as the portfolio. some occupied over The of across XX.X% rock good think couple we to rental is particularly calls, of produce the be is of from York. have and we feels submarket. And the do DC pressure Demand solid East submarkets market in deliveries some Washington, Demand to with very continues the market all the of supply, XX% growth, is than job central we'll best producing Coast, but past occupied. D.C. in our feels the as new rate to growth fourth the in a XXXX. good country have of and some on top market competitive our expect continue are more good Moving this expected quarter, in we on the next dynamics will supply-demand to revenue years. continue Rounding for and and star

Los as We mentioned, weakness blended few growth, the are Coast, Angeles the in there change. On in factors in particularly showed new some lease a West think I rate player.

First, in growth especially of overall from than studios production. a L.A. content power anticipated, clearly the a impacted job less using and pause here office jobs bit our by pricing the was

supply, Koreatown continued supply excess well in we some taking as seeing are some online to competitive improvements supply, West from months eviction about now the due submarkets X Downtown, particularly L.A. the down new months, in on process, Second, earlier in the is X which as coming year. and

like through in Koreatown urban Downtown working life issues quality the still of L.A. submarkets is city and the Finally, some

a seen Our puts primarily year, urban across long we momentum is and our some right we last now. County our driven condition year better Carina market Santa entire portfolios, Angeles And are a submarkets. than on seeing Los not that position. The Ventura us top favorable good suburban with by news performing have are in of rents positive all the

the is is and trending addition, running positively In above third both points today's basis occupancy versus XX year prior the quarter.

some jobs. also somewhat been Angeles the has in the particularly for positive while experiencing are growth muted XXXX, XXXX, in We rates in Moody office of are more retention Los And in Angeles. highest using growth for Analytics of year projections much Los job

modest comes in we new that in we Assuming pass, then to geography, drive of places results the XXXX. deliveries along think reacceleration apartment vast this should with across most a

price over demand residents continue After out San Orange with further evidence Diego willing growth affordability markets normal but County, to best rates. In to last are in of likely the California, few rest long-term Southern in growth more and these move we showing the to for years, the see some of we the sensitivity returning portfolio reasons. some of

better of this West At and Rounding point, about Coast, our feel continue to we X original than these and in out Francisco pace perform the Seattle modest expectations. recovery San good the markets these already they're management and we in set favorable seeing included up growth the to highlights some in of XXXX, trends the contribute are a markets. page in presentation to we have that

good than occupancy well. are deceleration year. is normal higher seasonal we last of XX.X%, feels year last seeing demand are renewals Francisco, to patterns, are Rents XX slower basis San which points compared but In following and performing with

this In market addition, feel including sector. the like some and center to a is return are of policy tech in to really impactful week drive AI spent can Salesforce of growing improvements you from reminder a just to the the the firms street why office market, activation. universe, significant energy Having the rapidly helping

last been next On the side, new years. improving competitive down, there new starts for Overall coming are couple almost for market. conditions no is of and the which supply supports little there the supply the year, starts very way have to

to and in its results ability market our drive are about We XXXX. optimistic this

to feels but Seattle, recovery the San In Cisco along. further similar

third by same-store the improvement rate revenue During quarter, better-than-expected driven and turnover, achieved. renewal reflected low strong occupancy

would New while than over last lease would change, better we still than this is to expect more we time. year, negative and metric like improve

than thought. As we are we better drivers today, sit demand here

demand for strong. at which XX% and migration more are come patterns, we over Our to remains from assets. occupancy renewal an us our suburbs, And people further additional seeing is driver performance is also our out our looking

story XXX-pound which recent the big week announcement gorilla in from Amazon, X-day market. is The the here is the return-to-office

several downtown Amazon past looking from from homes increased South office reported weeks, Lake Union interest apartment the living the folks For in have and further who team away and our for are local the submarkets.

better. With local focus from increased government City the and along business in foot business keeps just with and getting tourist community, livability downtown the traffic,

solid Seattle in market Redmond's positive area. the city we employment is tech looks see reason postings Another more the Bellevue of that for the in and physicians as both

need demand quarter, we As Francisco, XXXX. and at to on supply fourth San the see like holds. contribute and will real it should what in some strong previously market present, finish But discussed, the year optimism this we it the is there in pricing can and coming and have how

Switching of impact is same-store both is the Atlanta, where the of performer worst. results Dallas our in rate. have to continues relatively the new other and most small the to best producing the competitive portfolios expansion expansion revenue right volume our expansion occupancy markets. The markets we now supply Denver in best and direct new is supply to exposure the markets,

challenging demand, environment of supply. see retention it to new lease both amount operating given continue the is new and for We a but

the the Similar pressure makes quarter, on leases to for occupancy, last #X these renewing markets. new and residents priority maintaining

portfolio will are reported you Dallas suburban have Atlanta, markets. As new our assets Denver these create grow in and same-store our added and while portfolio the a we in in to and before we during of they are excited to know, Overall, a our quarter number results.

our a balance from demand renter to our core they target have provide these markets to long-term and While nice near-term risk, supply portfolio. continue demonstrate demographic

resident new able initial we front, of market. application, which with pleased was the our handle almost inquiries to very test On results of are AI in our the XX% inquiry innovation our

to We additional coverage, create company. confidence of have application a an will keeps get we which learning lot of in XX% layer efficiencies this to will the as that XX% operating

ahead, and streamline customer it optimizing looking those for many renters. Looking our that now are processes, make our the of journey, support have leasing and we easier faster to upcoming parts of improving we the the process forward to to including centralized efforts

Before performance I our to building XXXX highlight blocks, the expense I would in quarter. the like discuss

in low quarterly year. actual to the the Continued for midpoint on-site property increases utilities and us drove and and expected maintenance taxes, on results decrease should X% payroll on favorable get and our repairs an results

very are XX-year same-store rate consider We implementation core our DNA compounded cost of EQR. our X.X% and as proud expense innovation growth annual control of to and at

In still building too early in have some X Page published that year's next on rev closing, mentioned, blocks guidance as the presentation performance. Mark night, give while we management for to it's gave XXXX we last

Overall, very Today, we XXXX near solid. we will year that setup the a with well-occupied and growth for the expect X% feels position. in embedded start

favorable expansion We come be have in also the significant the a to markets still quantity supply setup competitive the of our very expected beginning have lower established down. And is new deliveries supply again. while as absolute will expected, markets

deliver factors, see with markets West the the company's that, performance solid our maintain and all on about In continued results the from San like the and On company upside for make top excited in Those in new the of customer our and should our focus the ability with from of we our along Coast are up to of Seattle, of we markets coupled residents. NOI. revenue our most ability see to which we Angeles, retain XX% occupancy we potential Los XXXX. Francisco Coast particular, East attract

expense continued for to want and approach their to exceptional management. service customer thank our innovation, amazing disciplined across I platform enhancing teams to our their dedication

call to that, I begin operator the the over Q&A to session. the will With turn

Operator

with first take we'll question from Citi. Wolfe And Instructions] [Operator Eric our

Eric Wolfe

you're in potential? mainly other revenue sense to debt program. just You your tied a could presentation WiFi For year. to about know income growth income, mentioned us potential but bad next and give thinking it's I still that for for other early, the would the to add assume what it's I you

wrong. we but there, correct good So I'm think some me there's visibility

Robert Garechana

than the Bob. Eric, and other continue with slightly I'll Yes. call percentage stuff. maybe to some might end start, expect of debt, of augment bad around, revenue. or Michael of XXXX a better income starting But it's that to on it, we X%

as there, as . a normal, We'll is to So as system we percentage construct to delta bad progress the to way frame kind see basis the normal or or right? debt growth what you to that incremental the guidance around have -- normalcy. the we The the not meaning set is and revenue. X% what somewhere If is back pre-pandemic what's a XX like. of looks our court opportunity between to have there, content between opportunity embedded to We'll all whether as like points. see is quarter set of get color but is, fourth get of We'll give numbers more in overall. what to looks

you're side, lot a contributor a their bulk as income terms were to other particularly correct of the of WiFi. the of we back-end the adoption fourth mentioned that initiatives lot But and the our in On it of bulk be will and a this loaded, well. WiFi this, -- quarter implementation, is performance

and as $XX start you million. will in So that started contribute the to the get quarter, fourth but quarter third contributing meaningful into continue be more a will will more has in in

you will think in you because industry that this, implement in contribution familiar expense saw but should those come a for be 'XX you're With being which rollouts. greater I be little with of than the timing bit there will of the what that component, good potential when of

Eric Wolfe

That's helpful. talked Sunbelt about more opportunities. it. Got also you And seeing then

of up short-term at focused of We've said Or cap just are change transact lot rate X.X%, less does volatility capital? now your as I a seen too I X.X%. mean that as on that range. in XX-year to forth, the willing think oscillates your of all? and you're of you sort pricing you think sort back cost it low dropping I back it's X% at

Alexander Brackenridge

as assess so of like that. week, moved that at I there tell to But markets as you hard Eric, X.XX-ish quickly. last opportunities a recently pricing It's will little Dallas. Denver Alex. in and like Rates were it's have

capital, So people of there's a a apartments. lot lot of interested in

X.X Now now. that up, coming something, we're isn't on changes much is there the rates the with plus maybe uncertainty XX election reality it's a bit. product little that a right about year, the The market at

will see everyone, feeling there's this things up, as process think out a we still where capital. for be I end but this all

I feels the rate to X looking think overall, pretty cap me good forward.

Operator

Instructions] next Sakwa We'll move [Operator Steve ISI. to Evercore with

Steve Sakwa

the have I that that's for quarter fourth and on under bring guess given of basis you sort leasing points blended X% for guys XXX projections 'XX the the spreads, somewhere the down that's to from just going in figure number. about year,

So but year working kind I down, still that of been kind is fully the half next and heavy, have this you we that through know supply think are absorbed. out still haven't into relatively coming back as deliveries year, it's of of

slowing And likely I'm growth. So think with hold spreads slowing just actually again expectation some next economy, do that leasing curious, Or your you deliveries job year? spreads still moderate could is that year? it leasing heavy next

Michael Manelis

Michael. this I'll and Steve, Maybe start just just say. is

budget So early kind described. of the first, those we're that in you all we're very just our factors just in we're stages of that -- putting process

a I talks still and bit to too presentation the basis the In kind the But early give how of is setup a the little talked revert I set absorption where I lot similar now, think management the to me that's we of of us, rent and like pricing about still intra-period of rent happening of as of up through I this, about absolute feel -- market But heading think X very year-over-year really that into to Right that's what's grow. a and Page XXXX supply of lot be the how a really also we we on because just XXXX of for the market it's a lot it. have that in drive for some factors to trend cast spreads markets. to going you going work we that. got kind terms back be of to some for leasing kind going mean don't to but were think about of more guidance with are this the to on these we we catalyst know in for things growth,

see couple of next So how plays of I think we'll this out kind just quarters. for the

Steve Sakwa

of WiFi. revenue, side, And question the with the following know of about you I on that. on Okay. but maybe then up also Eric's benefits there's a the kind get associated expense cost

other Or have guys good it to expenses these next in pressure little very see a on the you job growth added kind down with year, that Is think, the X% that of You bit keeping level. expense of done just achievable rate the around is pickup revenue likely expenses? income we side growth? a due

Mark Parrell

it's Steve, Mark.

of the York. abatement we've pressure from the You burn-off may got tax We see a call, last New in little pressure above that X%. XXX-a talked about the on still

So a numbers morning were be inflation it little Certainly, little the there. discouraging. will this a

the there's than I number So much there cost the year. But we're was revenue low surprise little rolling offsetting going think pressure. course, at a impact numbers the we'll benefit. guess I it more is. may for just whatever end up the an so of continue know me to significant WiFi be to this it put what up. But if But And number of exactly bit And some that still number you, be wouldn't higher we're is, quantify you we'll it.

Operator

We'll line go to St. Haendel of next the

Mizuho. with Juste

Haendel St. Juste

look there quarter, ahead rates X% maybe the just drop expected third from seemed we of could course evolves of And lease us like minus negative over was December about there the the bit a fall as I walk to in Maybe the are the during portfolio lease So of a to through on quarter. you think quarter. in was in first quarter. rates. new X% the new I kind question, performance how It that fourth to guess, the third

So given easy drag? looking performance. I'm Seattle you I'm San pretty perhaps of for some Francisco on of the where kind last comps and sort pretty see color incremental year's

Michael Manelis

Michael. is Haendel, this

start would and just about back just I quarter. what think I and is the third up think So let's say

saw little end of that said, translated now in a do right rents comp in sit setup new lease like a you coming easier Where a the and us us bit it we the at here got increased of we've of we occupancy haven't Page can the usage. the tail pricing quarter. I've So And where third had done we've the near in kind robust we much with expansion markets, the have the and of later quarter, just really Los part an city Francisco. for got year Angeles, -- for that's really a into And and We've year, Angeles San what now kind condition concession the trend third been of is, right, market on have like of on have some right you Los Seattle in that long. October, of power that. an specific that seen didn't where all of the X and see you we've number. you that bias. top kind the prior as leaning of we was into we quarter to pricing change And rates,

right, that of visioned, point assumptions like before, are viewed growth. growth of the the stats period XXX any and at well longer between given look the over but to of kind kind October fourth basis best stand-alone, quarter now and and like for the rate specific said versus XX And like So you blended especially our metrics you're you a feel pretty time I've quantities.

quarter get setup we fairly the new rate through X/X us. of allowing increases still have first in achieved expected, good we right lease change. and the for got renewal kind to stable moderation But some We continued feels to pretty the . month, are of now of

Mark Parrell

Yes. And Mark. it's Haendel,

to add rate a a number little lease benefit give-and-take bit. and not I process. is higher is growth, This can to mean decline, that Just get we our letting may same-store goal. which occupancy be ultimate that type new revenue a by to

just we without serious much current make hurting in what we're hurting have a be occupancy. average. was money as we in one much the the setup than If year. and for in situation trying the But or -- happened -- which blip for So rate nice September, in on one were around ideas. quarter month as other to just on blended next That the would thus a viewing factor us either more a and context to can

Haendel St. Juste

one Got also costs, more it. looks you it. guys fund underlevered balance like as in to used issuance, on bit but sheet. I'm assuming you then your on debt the the unsecured Blackstone opportunity It lower a capitalizing And transaction. the Got proportionately highlighted debt that,

the talk maybe And appetite maybe the near more underwrote color the that So can using then portfolio term? acquisitions to leverage fund the some Blackstone IRR a for in on you about bit for you

Robert Garechana

Yes.

and about start out, IRR. I'll balance underlevered incredibly pointed pass the So we with But to you have and I'll then talk it to the strong sheet. incredible, Alex balance over sheet, an as

below of debt. you frankly, Xx. net on may for kind of debt As by recall, and time warehouse And long EBITDA of capital our the recall, targeted and well debt those call a looking paying going have may warehousing down to Xx as we to own spent capital metrics opportunities. we

by itself able we capitalize the that by proceeds. very side, so do opportunity to we on on debt attractive a at had, with fact capacity it catalyzed And and particularly when Alex the overall, the use rate using so that were further we the of presented on

capacity the just outlined it, that make good of look and that cost a in So we that good given where and really metrics And accretion of use we opportunities X.Xx. call advantage P&L capacity allow time. debt the think lot I fact at, for a would take to sitting capital lock over sense to that more we're there to long-term is

Alexander Brackenridge

to And our then it in underwrite was with compare case, of we cost at an that weighted IRR, this we at WACC unlevered capital. In and of that X%, to in an which the time average was IRR, excess of Haendel, that IRR terms point. unlevered about

Operator

with to next Alexander go of the line We'll Goldfarb Sandler. Piper

Alexander Goldfarb

sticking Bob, balance sheet with maybe just a the for minute.

the Or programs obviously, program, programs? advantage you impact more your alternating REITs get on rate? of one between using unsecured? X got take active underlying as pricing does -- X And walk that far as the are unsecured the in you ability debt of the the guys difference You how that's the just you CP us about markets. CP to through the Can an

Robert Garechana

Yes.

short-term and back us me got capital let working exposure sure rate question. is paper that working of for step means to we cycles So us floating really capital I make kind volume. the for guess I commercial deal use But with and transaction

our right? What like? coupled such we've liquidity because balance that out. the extended sheet so cetera, lot cost it right? much profile we're line CP call We whole we thing use on short-term and pockets of much how together, components, SOFR it the capital, to have of our rate can rate And done What at, years short-term bunch line to of balancing have floating little issuance -- would and But exposure, have, reduce balancing of capital like credit overall plus cheaper of balance is than the over goal duration does our the maturity a How program a bit And all and construct and borrow or of to job our long-term we factors, and XX is the it of our like? credit, aggregate use some floating and can and usage the market we'll et a does the look which profile like much portion toggling when contractually what plus capacity use it, a so. by structure basis great it. So a of be comes look to long-term overall. unsecured the XX our look we SOFR points really in between some

Alexander Goldfarb

on and question to you second more is, seem be hopeful San guys Okay. Seattle And then Francisco.

of announced that there past rebound and that few the What this truly collectively could Fran X in we've actually finally markets a the years, for a hoping that return-to-office team before? out. of have the confidence past been those we've Over it's hold companies start return taking and time, all versus lot false the gives fizzled positiveness some years. the seen And office San and for you've a are to few been mandates that obviously, seen this ground on have be Seattle the of of sort

Michael Manelis

could start here. I Michael. off is this Alex, Yes.

it I showing could Onsite spent you and on teams feel based week for up and prospects first, are tours the just some Francisco, will tell a in just So that that. of the you San the

So that decisions. for that's they're of a from week, several the out days fact coming and walk back the further driving show need people the migration office, their they about lot office patterns to talking into a be year work in they back into when the

Redmond the it's the of to early, city up job companies. job little we've Francisco the But serious the some a the most I in tech it. of Seattle, about the see to follow companies like some And you, the start see the actually marketplace. in to of hostings Bellevue, market it probably is and big So tell the from in are is are bigger postings company . Specific in seen say, other providers ground still could major I'll Seattle, this them the would talk announcement, bit all lot Salesforce we this of prospect. up. when in office from like that tech you San activity in feel that of have you A making peripheral those

coming for that weeks out. the on-site past in And them team, the the be concerned in won't get the be there's talking we've or availability and to the front this in, out Amazon going January trying that Our start that are they're came demand rates like to several marketplace. week every employees certain there announcement to been because once of of that date either apartments pent-up

buying actually they're early from us. So

just what bit than it to kind saying their San further Francisco really teams. feels from see could feel we So now, that, along and is they're little like Amazon about we a right Seattle and of serious

Mark Parrell

perspective, AI Mark, jobs. Alex, premised year, been office-using sufficient added The that, Analytics in itself. jobs in that barriers hopeful some have Bay there's to lot little jobs, of is for the a shed job of but the terms the we're and our Moody's gleaned going that in good jobs be reverses on to numbers And tech it's next from been this, growth Area a offset not those of have that

Seattle been is is talk of when light, there better you quite think definitively good. recently I've thing. better. but quality San I Francisco as well, as So same not

I little us jobs. what of about job about on in overlay then and less you third quarter think overlay. of the you And being feel addressed. Seattle Francisco in got good bit L.A. I on you're being L.A. feeling quality the life side, considerations you job sideways for little a is think this San a And better and saw was advanced pretty

keeps markets So industries, Those and to great come attract we for think fully ingredient that see will that, if economy again we to that. but hire they to I feel these need are do the start recover, through we churning. and

Operator

to go with Green Pawlowski next We'll Street John

John Pawlowski

the we conversation Michael, kind to I wanted of can it difference. to frame metrics that pick Seattle. up and just on night help, with day so trying I'm some understand specific in you just

just a sense to steady trying a of of a of applicants Just it's surge or foot traffic trickle kind get post-Amazon announcement?

Michael Manelis

But concession comp of I is we're our the look you're were some residents year-over-year. the talk quarter, concessions think trends We Well, And of the the trends of normal our XX% suburban some that right? line what moving management a we not Page urban presentation quarter, patterns are issuing And I kind only kind in. saw seeing rents last the in seen about pricing did the migration last little mean, comp patterns. some still on even these you details the and of actually in these bit We've of actually kind submarkets. concessions, when softening downtown time fact deceleration put good while in right now, looks I rent mix, new think had I some abating of use or we've this we that migration we that seeing X heard but from down what this decelerating. of think fourth before at like, kind for there, year,

seeing just we're shoots would describe that in what think a we I the seen felt we've as So greenest while. and like

John Pawlowski

in just backlog, occupancy vacancy gone? not sense do finally of your Anvil fundamentals? rents market rate surrounding from eviction your that be best the think on inning market Okay. competitors. terms will on L.A. market you portfolio of the overhang And in when but then and a on on and the question we're What's on And in overhang market the

Michael Manelis

Yes.

Michael. the normal. we back a kind have. be pending evictions sheer look when of understand we think of to the just feel in So John, exactly like this of at That's quantities marketplace kind that is you I thing hard we'll to of number when

was We dropped back positive X/X way X see kind through than months backlog. of to of for that It are sign the duration our of more of to from a kind the really we kind to the us that but for swing months down X it quarter. to probably like another we need of the to drop early get X-month to average like in normal see saw things. that

they we'll think for about pay the line of positive besides are rents the how guess we're besides that top the now look quarters my this up. just you see on this to talked excess the able we is our while in market. are and with of year, is kind modeling another are some But occupancy probably excess We that top some those this when inventory have rent occurring, next new units of getting So quarter, those year at of in about, Mark of out for rent. how inventory prior getting that pressure drivers couple of we that we looking from really residents we the at L.A. fact hold

us. just backfill some those little to bit than positive had conditions. normal a a that's would units market So otherwise It's taking of us longer you in to have

Operator

[indiscernible]

John Kim

Seattle you've You the the seen few trends migration from? the years? last Francisco. talked reversal about Sunbelt in to favorable this Is are being residents of coming San net migration the and Where a

Michael Manelis

Michael. John, Yes. it's

coming from out migrations so much the happening being state. is in. not in the migration are shifting we're seeing it's happening of XX-plus or So miles near patterns What migration out is from

in within they're be MSA, same even could the it coming us. near So or to

source us. So that's demand another of for

of kind MSA. we saw not elevated out-of-state within from new the of like We're still still what seeing more in like back era. from getting the it's to in but our are You pre-pandemic some migration slightly occur, residents

John Kim

earnings. question it's immediately is Okay. to My realize I on second the Blackstone accretive acquisition.

of expansion than going in You are more bought on negative it going markets? But markets given replacement you you markets operating anticipated. your assets maybe quicker below the backwards, these Could NOI in some these have acquiring is waited environment costs. in

Mark Parrell

everything wish trade-off Boy, get and were be Yes. going but price you're going growth a Mark. some the I present. It's you're talked price We've that and you'll a and very tracking weakness. better have probably our buyer, a to here, you'll of rental deal, in numbers very continue on a likely on we is better to to get early weaker higher than pro consistently that very, but pay be numbers, Frankly, before rental less we'll that gross then growth it's to now forma.

in he be. and weak. as pretty an differently. do again, things we So well as that again, even do management they'd of improvements. can we things operator, exactly rents expected see going Michael management is we terms the excellent if those and Sunbelt be delinquency of is his underwrite, it are and sorts weak run vacancy better team, down, are to Those thought there we we and weak, we And are can

second to while a markets some same-store derivative going see to X would significant any have longer. did cost kind into assume a here our replacement take timing I little in I little the love think start you're for see I improvement don't to the discount. And bit going Sunbelt, in regrets I dollar cost improvement to because in Sunbelt it's about take guess your a our of revenue. with few basis the We I big really that that So this we but think in think quarters,

Alexander Brackenridge

And John, it's Alex.

historic just just of in We some the when the those oversupply. amounts specific think being you markets, are Sunbelt markets outside X Denver are massively Sunbelt, of that in not seeing of

there's So little our like feel we more time. digestible -- a over

just amount buying been not X sold for because is whaling. where we an do but Austin example, pat have as we -- the have properties, supply not standing are we're in of We

Operator

from UBS. Our with next Goldsmith question comes Michael

Ami Probandt

or the San the as Coast markets Francisco? This been seeing Michael. the on same in is Have been Seattle you for Ami in-migration you've East seeing trends for

Michael Manelis

Ami, this is Michael.

where very back patterns 'XX, those immigration historical the both migration residents look 'XX that actually East our of new watch across kind with markets we when patterns really, are across Coast with going, are East how pre-pandemic and attaining in very much markets, norms norms, line from Coast both leave they also in us the you much migration saw and when we're and out line So in we the residents 'XX.

Ami Probandt

debt this elevated new bad new trending? normal? on Okay. How And coming with then historical levels in for residents so of debt debt. levels in are door, presidents bad the line one or below the bad bad debt, Is

Robert Garechana

it's Yes, Bob.

very of terms debt new from wise. it's in bad So entrants a standpoint,

So pre-pandemic back to it's levels. normalized

to residents quantity as in we coming actually cost have the keep manage to has The that that quantity the each much of back So front new pre-pandemic take thing are normalized to this of and thing nonpaying -- mind you eviction those levels. door, people longer, more. the in one is we still of keep processes mind very if in that

high quality make So we the process low technology bunch extent people eviction going level, of pay. to normal of is of percentage it to be extended. initiatives think that and through to still in don't But resident a have of of actually kind a that that terms getting to coming we the we try quality, lower at it's still utilize that than

Operator

Nick Yulico to now Scotiabank. with go We'll

Unknown Analyst

new up It's or year today think in rent some but X, mentioned higher how on And question assumes in growth out first I the Daniel acquisitions Tucker those in year. high markets? earlier. along you you with from growth following probably supply Maybe flat underwriting John's Nick. Alex, on are that the

were curious rent that to maybe market you how players in So growth private work? baking IRR the are get math to generally just

Alexander Brackenridge

Alex. it's Daniel,

markets is So historic a certainly, little different, all but are supply. seeing every than higher X property

-- has prior year little what less, board, bit over than the year first across the a was. less So always the been

that other less. year maybe of to we that in. flattish efficiencies second that income is layering is part The from But a offset platform we're operating bit little our by have and

we then growth. X years in that second and an by do the outsized is think X, net-net of the will And we end the year. see So improvement

X.X%, might thought if X%, I going you be highly the norm achievable. think is be historic to So X.X%

And supply each so we in the asset, trend we the little a do on bit but factor show. that approximate for depending that's generally -- that

Unknown Analyst

And maybe a then that. for I had I Mark. follow-up appreciate

your different or on? legislative ask next Maybe different maybe like to And more wanted topical now? -- do week next you the election, less topical think there high-level variables focused on things. you're Just thinking what's Are be are the could maybe what year?

Mark Parrell

local Yes. government election Thanks is state the question. getting for business. I notice. generally that I mean, course, lot to more of federal will impactful our of say is a and

of anti-housing industry's third this the very will we've been we focus reject California, there, proposal. And has active that focus rent on for remain and and XX most optimistic of been so PROP and our the time in sort control Californians

So that is certainly topical.

into they how important on put and difference terms and there. the capital President, and Depending of as there the FHA government in levers can it well. in a pull Fannie approach the Freddie, market is GSEs, federal The HUD and has

So I impact. guess that's an

like then, industry is which see program. some expansions So we'll circumstances, things we'll whoever the and program have of And will impacts low course, all the is the inherit see tax out. settle budget credit that in to of income that is President income programs, housing voucher the for. Middle advocating how housing challenging

the more some state we've government in year the table very of whether and of course, having housing certainty. a supply in a very is it's industry in had But week, housing, that focused focus right main is are it's housing hope lot focused that ballot or now bill, bill, we a on. the across lock discussions initiative so, the California, the which know to trying Florida, there, topics on and I very generate reform, country in there's terrific which the a little supply main focused, last development, much So zoning bit their the the whether was California. affordable again Massachusetts transit-oriented different on And Governor

solution. everyone the being I supply about a So think gets message

state industry to things XXX-a voucher whether push the as in federal like that. BTI well public-private level, just that, Seattle partnerships it's the program as enhancement think like in has and the and got or I

clears, a we're I a to smoke again, uncertainty. have little a or longer, dialogue there's week be So think great maybe for but a going when to the little going

Operator

We'll Kramer to go next Stanley. Adam with Morgan

Adam Kramer

couple are a portfolio the Where here? renewals of is to in wanted you And Great. ask loss to where December I today? quick sending November, the maybe out lease ones. for

Michael Manelis

Michael. is this Adam,

first, So just start I'll off.

loss up. lease So I'll just to the maybe back -- and

in So can XX year, basis of at we loss beginning lease moved started And of about as kind position. at pricing of a we moderate improve points. ourselves back a to actually the to the kind position into that lease then gain

we're a little Because any a As We month, slight a the the in to have gain where comp of a at middle in going us or markets. October now. kind to kind easier in of the position, range. of we're of that of that's of we positioned year, XX, again, of it loss year the normal lease gain to end bit a basis in kind start slight about lease do tells the were points XX of you fourth given these slight up can but quarter wind couple in of that which, a right

final of see plays year-end So we'll how into the kind that number.

renew of high percentage stats put that, of team. in to our the side next the the XX leveraging days. our and residents. service in expect terms our customer are centralized really for We on out renewals, In We some been there. of continue still quotes a the to focused the We've business marketplace right now,

some improve to us. X.X% increase, some that we of With better quarter bit a markets out could the that if a we're down little negotiations a for West around are renewal have marketplace those are or of results higher X.X% around the produce obviously, because, Coast we to achieve of X%, the the in or a kind doing, ability the to bit in little quotes the continue that markets, which expect dial

Adam Kramer

one-off here. a markets on? helpful, part of I the Great. And is, That's obviously, first on kind when kind switching about this with things? X-parter kind thinking of Is are quite to just that Or is if And maybe then potential more the pretty on just side of further portfolio. so, guess it is come? the opportunities portfolio gears dispositions focused Michael. large of And here? second growth, there of you're there going external which more really for maybe is forward, here you part

Alexander Brackenridge

Alex. it's Adam,

question. First, on the dispo

where exposure are California, decreased outside other decreasing we we'll that. It's continue on the in we've and the that recently, as a cities of core done also well in the of we've talked California. As of past, more to focused for information a taking about couple talking and know, not we're just contrarian in something. do But starting We'd urban right we yet. never bid But kind to a sell in to great to We're view. as about we're have properties. hear are that people for a you now who requests position of

and a bit bit within spread of -- our I to then kind coastal into we become expansion us on little us think just right our we're suburban are these But continue a see to you'll So markets waiting for to more that. than footprint the market little more come now. markets

but more to ability the other to little a bit, happen. we that us little a sell brought assets come while waiting to the market and So urban, have we're for to

we'll deal. owners and opportunities volume. developers the create And one-offs, be of versus the do to deal major we to or In day. of and if we're keep one-offs Blackstone doing about, came more terms find portfolios, business the out every able opportunity to to how but the we the would love to trying and we're like not, talking expect any there That's Blackstone

Operator

the of of Bank line next to Dennerlein go Josh America. with We'll

Joshua Dennerlein

coverage get And the of just going you're follow to shortly. how I on XX% the then to wanted one thoughts we on rollout how potential resident AI up about guess opportunity and P&L? any about should this -- of remarks just think to impacting I improvement opening pretty margin XX%, rollout here? the the benefits maybe

Michael Manelis

Josh, this Michael. is

about talk start So just one what first doing. and the with we're I'll like maybe

of were leverage efficiencies, that's the actually can able answer now, inquiries being experiences. these there that of almost able customer residents. with in the where start that XX% so immediately saw machine teams get XX%. prospects. say that kind you layer that continue flex get couple in is quarters, back into they new a to to We you already applications could We we and that Right another there, early or than of with process. we And mitigating this kind And reduction rolling or of started multiple next what where payroll get the what our we to deals on like of XX%, and tool benefit better hope our you of we've learning get kind what growth those get Out take operating of inquiries not of from you on-site lot whether create out site resident XXXX. or kind tasks. efficiencies looking centralized in necessarily -- pot staff to of payroll last we better. then an side, you further over quarter, we on-site that the coverage pioneers kind we'll we're we're done to on across properties centralize even our of really, box, did in with is questions we're residents doing what of we So leasing as is that AI see have And of as to think

is we're I like So that upside? something pretty the want market never a we're done understood. sure that this just come impact And market on quick I really but question, have about the the Were to part you're talking operations of some make really with, of again, your of excited. you seeing the And these applications to second do company.

Joshua Dennerlein

generate margin like expense sorry, portfolio, opportunity expansion No. guess, I the it like some savings. across just might seems this

think So about opportunity just the trying to set here?

Mark Parrell

being grow bit as us I just do I well that it. little that costs, improvement. bit not Mark. those do is think part bit it. And mean just of in levels. I the sure, fair break is to of we this sort much a sub-inflationary whatever payroll be think you've what Yes. margin of as of but the But I is, and as and costs -- improvement that's just the of rate kind various it when of closer inflation. of to a medical XX% you've call, effort. below you we seen I'm we on to is got as And Garechana well is much and that little margin think And mean Bob revenue, inflation better hold number, a just again, last rest seek it's said How the of growth it we're this blunting

Operator

Goldman line We'll go with Blouin next of Julien to Sachs. the

Julien Blouin

to Bob, last be to deploying into rates Maybe, does get and levels cap the time leverage spread bigger acquisitions. an of continue leverage tightest now geographic right the you at your for I between decade? picture, when the the in your the talked acquisitions about capacity maybe deploy openness guess, to mix the feel I reasons capacity here. of Why debt remains some cost like maybe

Mark Parrell

may asset aren't just at means not to the too. going and the we've buying economic incentive Cap inputs on an to that's calls, is lot said thing Interesting. cost as a of It's replacement I'm And start, Mark. there supply to to mean this unlikely only rates a to build. it's an cost Alex basis, add really replacement isn't it about it. calculus. I prior be because good important,

So there growth Alex underwritten. just better years, revenue the prospects minds, our than much in in X and years probably what we've is, especially outer described, X as

a we're And bit here. as buying what so of little that's well

disposition the In terms between of our cost the of assets the like. and and funds spread

pretty are about relatively buying to You we're assets little also have and capital. generally The have think new CapEx.

load. You a capital with to older sell continue much bigger sell we'll and these us saw assets

AFFO think So the you FFO surface about when look kind on better, side. are yields, the of on they those then

don't are realistic. your well date. capital you're that going happen the I also class, That's almost get last, often and things gaps that going invest do see can not say And here. or what think asset between these are you a on in less the other sectors guess, just of apartments all some desirable liquid and at few there's in that you I a at. idea I like We to cost So owned such just

don't happened. some comment that be well sort of more to capital our our to great And trade super more, and So well think that compress the means I that they do that the lot it that, would trade I'd very assets guess that happen of that means if tend end with a in liquid, have view quickly. cost really market. But I private other and in sectors frankly, they

Julien Blouin

of in of maybe And of capital. sort produced on view other returns cycle your risk-adjusted entire an capital But potential it. Got sort about your that development. know of over sort I acquisitions I thinking not the more of you guess use better complete not million developments? why maybe this cycle, aggressively But I the higher? towards at expect 'XX. know point 'XX little why sort in that to bit I bring and $XXX tilt a guess,

Alexander Brackenridge

have Julien, the markets like coming. it's interested Dallas Atlanta that Denver, all supply The in we're and Alex. particularly

that building look could to work going amount to we sure, return we're markets. most us. cherry not But best into opportunity of properties for we're get sure look So really have kind well to that at the you really of at the big that's when going that those I'm risk-adjusted

Boston, on historically That's buying where it development in looked don't saw instead a and amass with where why us one-off places you focused acquisitions. see starts is how at we our hard opportunities. So those Seattle was suburban to suburban with we portfolio

Operator

Wells Feldman next go to Fargo. with We'll Jamie

James Feldman

give I property just guess, where any initial until property commercial conversations... ground your heading thoughts your know insurance, insurance covered thinking or about here. and come but you know March, of I a just us can renewal we've think lot are rates doesn't insurance I up you what

Mark Parrell

management I to Jamie, it's talking that. Coincidently, was yesterday about risk team Mark. the just

our increasing year. So bit to each property our year-over-year, enhancing our [ our coverage X% And ] us renewal is was in done a on remind and of included March that well. just as increase everyone,

own that folks on pretty impact team of So in with triggered we our renewals point thought $X we to windstorm ensure stores this insurance however, renewal this be people big had lot Milton, have what to don't at year, benefit us. of because was could that's places big have to. renewals, underwrite losses the And don't But good having management giant spoken within we through that had the exposure the risk, relatively a 'XX little would X on didn't more Helen, feel a hurricane to have exposure. risk apparently thought. a and a which We so those was billion they they insurers will huge

sort don't So budgets. to appears where But insurers number whole coming occurred. rolling from for not that was can't what increase and catastrophic rates still is see of the give the it that yet exact you prepared after -- across a sector. like Hurricane property we up insurers an this there's insurance we're hearing us mostly in because we're I

James Feldman

in quickly try for And 'XX, just then coming you'll when due after get Okay. debt I any to guess timing Bob, that? the of thought initial on

Robert Garechana

Yes.

in coming is middle XXXX, the have as we mentioned, in million the $XXX of year. due, kind of you which So about

million at company of look size, our $XXX particularly large. we'll is our liquidity, a opportunistically. rating for credit market not So our the

some really, we And to we I be at have is. lot a other response -- in So like how just mentioned that we'll opportunistic of questions. cost

way. terms in is a June, a terms and of tenor, that can we of size, that stuff But the of have use. tools in to lot access of we in we leverage of We a the all terms variables the mix of -- in have lot of by that maturity of can a of and in just pull lot excellent lot capital

manageable. very So

James Feldman

look now? that of interesting types Are particularly instruments there any to you

Robert Garechana

It's treasury that X.XX. almost million we in spreads great. so daily XX-year volatile Like long lately ticked low, we the that great, a the the that September, the XX-year of and that kind was $XXX did were basis. when That it bottomed it on ago wasn't of changes look

like you're they we duration can of -- also does honest begin is engine bit got steepens, a getting little we've outstanding, our aggressively, the that. too. doesn't We're is around look have shorter XX%. that you've years advantage they And start some right for bit to of we et maybe have paid might XX you, a for floating to floating got because now, of exposure target with little because exposure, and the rate rate hurt now. because will right As take cetera, curve cutting more our under if to become but it And long doesn't Fed tenders And obviously, be that. so

we right and good every is lot interesting the So options a volatility was with it's what it's the day, the new a before, we'll options. more get think to markets seems And closer than now of have as -- have that bit in opportunity in little it to like looks have to of I something day see we like. the

Operator

with Our Linda Jefferies. next Tsai from question comes

Linda Yu Tsai

has already. asked lease this if when a Sorry, new been Is spreads of question there get sense positive? more

Michael Manelis

this Yes. is Michael. Linda,

the first start will acceleration in the get lease spread of quarter the prepared new that. And positive expect, year. of start those should first at curves with trend how you'll that start, spreads as -- we said look in kind X And throughout what decelerate lease pricing you of management some kind part can in in the to there's first seasonality But the somewhere fourth and spreads, lot you So this into the I typically presentation remarks. new a understand we think we year, of that to you later then Page goes into will that quarter.

Operator

We'll to Associates. go Zelman & next Kim with Alex

Unknown Analyst

so through you that as Can guess, your that on in question seeing to you're a attractive here. long-term talk what bit a going other piggyback makes I'm criteria you're just Julian's expansion system at off second markets any that looking fit I that then. well? markets them

Alexander Brackenridge

And amount in job side. particularly see demand Austin, customer. in principle supply that Dallas, been continue more project Raleigh that And tech Alex, going get of of We the slow of are is now. marketplaces area those and Denver, gets about But on talked places, to us. our daunting. we're Carolina, to have Charlotte. finance absorbed, because be it's jobs high-tech we've use then base, Dallas in and -- like North guides the recently which fantastic to Alex. really right just that really Other it's that like when has Charlotte and in hard see to markets didn't the these we've the numbers specific -- we that to been example. coming following out in them We're volume Atlanta will terms an And that good particularly

a to much dilution, to to we're So some want accept willing how but there's accept. limit we

bit little us markets So I becomes in when think you a more might a clear. little enter see that those

Operator

We Wedbush. go next to Rich Anderson with

Richard Anderson

the on Blackstone side deal. the on longer- the out plan term what's question Bob, the of financing? First CP

Robert Garechana

term, because from the component was partially it disposition near CP was in and be So good -- it just will disposition. of proceeds the timing elevated a balance

that is But like back bring early So we of we it, $XXX the guidance $XXX fourth our that CP year. have, half million call million normal it level. our the keep or or could kind to next for still planned or dispositions $XXX line QX of we this balance what will for year put so that with slip have that the of to into million of around back quarter,

disposed. really it's So

Richard Anderson

this and of fair Okay. picture for not but it's And almost probably with course call sold, years to In Sunbelt reversing this reverse has climates is decision function have X of Sunbelt? areas course And you're the something perhaps Or on? else tech why of, now company gotten company on kind Mark. you ago, California the to expansion suburb today. that sort the not a bigger of you're and versus has ago? years the say, to all then how business-friendly Barry all was Sunbelt, and business in moved XXXX, that XX better arguably caused -- of outside or doing other chunk it there the now so a Is a made

Mark Parrell

long history business. talk good who of Thanks, such amount someone to in Rich. a to It's has our

and and and one on tertiary it. markets communicative people at left more vocal market every in and You Sunbelt have more may We morphed. focus, focused markets about The mix left their of look renters our higher. competitors be lower-end they've is

And be company became a those risk of several while, But be was more Alex a lot of to some mentioned say circumstances because them. a places. mean, just expensive and was some big those in jobs is some exited there markets more is our it it kind other we of enough that our to is could in adjust those buy with Atlanta part And customer, coastal fair, changed. remember, advantage which states So that there Regulatory in when and of following more goes build significant markets. than those really markets. how higher-end thought got you are challenging no the jurisdictions became those might for would does for I our among markets. Sunbelt line. customer, our And the I we like things in every

rider that's X it best used changed. our really out middle the And renter it And worst in buy Atlanta. in would tenancy, home. pretty to and a a night all they of move be our low They'd quality and So right? with was months the be

quality job places these and to go higher You growth. much

was higher housing regulatory residents of risk, a it much costs following areas. single-family combination in desirable So our and

Operator

to Parrell We any floor further I'd have remarks. or to questions. Mark back turn for additional the closing no like

Mark Parrell

Thanks, Melinda.

and folks work our other in the call, of today, rest city. As There we salute for are Helene's time I on my the or call to picked close duty damage we beyond done terrible end Georgia thank we'll that the aftermath close I see the at was time. in and Hurricane quarter for here you in colleagues books counting to all our above financial of Augusta, our conference the Accounting the up Center the Chicago, to for the you call listeners, want work the conference year. of you. Thank and of the what on all and your slack got thanks

Operator

This conference. participation. concludes We you thank for today's your

disconnect time. this your lines may at You

Equity Residential (EQR) 31 Oct 242024 Q3 Earnings call transcript