Camden Property Trust (CPT) 4 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Kim Callahan	SVP of IR
Ric Campo	Chairman and CEO
Keith Oden	Executive Vice Chairman of the Board
Alex Jessett	EVP and CFO
Haendel Juste	Mizuho
Derek Johnston	Deutsche Bank
Nick Joseph	Citi
Brad Heffern	RBC
Neil Malkin	Capital One Securities
Alexander Goldfarb	Piper Sandler
John Kim	BMO Capital Markets
Austin Wurschmidt	KeyBanc
Joshua Dennerlein	Bank of America Merrill Lynch
John Pawlowski	Green Street
Chandni Luthra	Goldman Sachs
Anthony Powell	Barclays

Call transcript

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Kim Callahan

Good morning, and welcome to Camden Property Trust Fourth Quarter 2021 Earnings Conference Call. I'm Kim Callahan, Senior Vice President of Investor Relations.

Joining me today are Ric Campo, Camden's Chairman and Chief Executive Officer; Keith Oden, Executive Vice Chairman and President; and Alex Jessett, Chief Financial Officer.

If you haven't logged in yet, you can do so now through the Investors section of our website at camdenliving.com. [Operator Instructions] And please note, this event is being recorded. available share this upon copies be are and request. will to happy of webcast for afternoon, replay we Today's our slides

advise be can review from of found our our Further statements subsequent that results information company risks current Before expectations. would and obligation update we management's uncertainties to beliefs. these be the prepared assumes with and our are you expectations and forward-looking made represent to everyone not of to and involve statements events. to and the guarantees or them. making on we in SEC, opinions, call actual about filings forward-looking will and performance that differ supplement current no could based remarks, statements because cause These materially on we future these begin encourage like I today's Any risks statements

quarter the it our release Camden's I'll discussed reminder, earnings call time, is We XXXX on a to this reconciliations call [Operator includes at the to Campo. in available which over website complete hour. At financial call. Instructions]. non-GAAP complete will As within our to turn measures, this be of section camdenliving.com, fourth hope Ric Investors one and

Ric Campo

the going memory me has the for to embraced The the set opening and into today. morning. you I'm Camden team theme from Winter as and today. could Olympic down And Olympic Good show tell ceremony Camden's XXXX for video show, are Olympics The music our slide lane on-hold you archive Spirit.

in probably showed unique workplace and with by than we give handshake. proud workplace. popular a and this receive employees friendly Maybe. Camden made a Olympics, to a During Me be hug One swim using are women's any a teammates Camden, hugs Call other titled Summer more team instead the XXXX At America. song very the day of a per we greeting U.S. way welcoming video is

exceeded XXXX the with in corporate Me [Audio-Visual with caused hubs. Olympic a by at world fully forward to pandemic hugging that hubs. a culture out seen distancing uptick the actual Maybe video Since hugging we becomes Me our actual to time we virtual remarkable combine workplace, a this guidance adjustments vaccinated provided you all Hug turned Presentation] the Maybe an We we the breakthrough will Camden have hugs Call look replacing our spirit, hubs when if was virtual during in original many day of Camden's So year. be Olympics our following clearly happened a recently Camden year, of our And the cases workplace. at is One social in this office. actual at all become video. XXXX and last

up same revenues slightly budget share, of net call approximately $X income per FFO XXXX with property down Our and X%. operating for

night, XX share reported same-property with and income, As and respectively. operating last and revenues closed we growth per XXXX FFO net X.X% of X.X% $X. for of

of We The guidance year $X.XX. for FFO and net earnings With growth of to operating midpoint our expect XX%. on share for be revenue our XXXX $X.XX record growth. per and XXXX of calls of growth same-property best income same-property

members a Our and for continue want values of the our diverse hard markets I to and Oden. is to to Sunbelt for one portfolio I commitment the thank best Keith Camden outperform. the will but and customers' experience great our XXXX yet geographically the you, a to over and our members team product was now each call work year, come. team improving in and Thank to lives at their time. turn our of

Keith Oden

Thanks, Rick.

markets we the expect during every supply of worst. XXXX best at with demand conditions our ranked in a of and assigning markets of year. the order tradition to I'll grades We markets review Camden's in forecast letter the in have and conditions to start beginning of to the a encounter

For time Camden's outlook and a portfolio overall grade XX no stable A market minus. with an earned below in years, A the first received a

our average report markets, the earnings showing to entire now as providing range after outliers call revenue be card positive part but of you will which that In in portfolio, be our most of year falling which The Florida produce on is improvement today's Phoenix revenue to X.XX% and our significant We show deck and addition, D.C., anticipate growth, we double-digit still slide and on likely X.XX% this now posted side our XXXX. versus the overall then which within with call. growth of portfolio overall would range. are same-property should this markets Houston website our lag will the for

created Our in XXXX, of to new supply. major outlook Estimates completions. growth XX XXXX strong Camden's third-party along in that in based economic reflects multiple to million new and amount markets with is million on generally in our coupled for demand new forecasts supply from with a jobs XXX,XXX markets, job steady XXX,XXX X.X X range

somewhere were Tampa coming in to Supply So approximately new give to our Current markets and has calling It of projected are online our outlook. that with These markets: is an estimates expected reflects Florida Each XX% with coming revenue supply over revenue to growth a and look Orlando. X% XXXX year. expected strong three with both Florida growth this Tampa XXX A+ three demand A+ XX,XXX market Florida, are outlooks. averaged top jobs to X,XXX revenue stable growth Phoenix, no job and job XXXX, for online. estimates X,XXX new the in ratings our for above which three outlook surprise an in new this growth Completions are We Orlando. next has XX,XXX likely well and units once earned achieve growth past projections. XX% ranking be units, XX, over Phoenix offset and and have and XX,XXX, midpoint balanced of both metrics in XXXX XX,XXX around this Southeast for Southeast should well year. rating respectively. Up stable years also for the again and goes

Charlotte stable earned end range all A Austin revenue rating is growth jobs should XX,XXX apartment an to pack X.XX% markets X,XXX completions And generally should middle ratio eight around revenue next Camden's growth with of the call In be next falling In outlook around our and growth Raleigh, should units. XX,XXX produce Atlanta, toward the of XXXX. guidance XX,XXX San additional projections our XX,XXX completions with in new high and Raleigh a Xx apartment job of Inland in Diego, roughly completions of Austin, Atlanta, Our to jobs in new jobs achieve guidance completions. in to X.XX% within the and versus range XXXX. with the be for new portfolio. XX,XXX with are expected Empire

For XXXX jobs with Diego Empire as X,XXX with balance summer. last two should Charlotte we to providing in the Nashville San XX,XXX supply and jobs communities there units Inland demand good in is around units. X,XXX also that over market. XXX,XXX acquired new we market, of expect supply new new see deliver market Camden's a created, newest

in that be expected year. has in new of and XXXX an A outlook. would in to deliver not as the been will a There our we will construction Nashville with with units stable continue XXXX, Nashville, same-property city this pool, significant approximately While included a rate amount XX,XXX

Dallas XX,XXX has migration positive in Denver and Dallas solid homes Denver strong with A improving new However, and demand steady jobs XX,XXX delivery for remained respectively, be new with projections XX,XXX with we last XX,XXX in have this trends respectively, are markets, XX,XXX again units, scheduled for remained and market an are XXXX, the Supply-demand and but conditions over Orange ratios year. both in apartment during L.A., in at XXXX. both rating, earning new to and outlooks. end for jobs. markets Nashville expect and County anticipated, two supply favorable Houston

in be begin regulatory LA reduced. other County saw restrictions than our COVID in ease metrics. after with bad new with delinquencies concessions. healthy market growth Houston, levels Job around expected around to In should XXX,XXX to lease-ups and that XXXX in XXXX. hopeful has and issues operating with County improve in evictions struggled Our of higher supply demand XXXX in Orange many faces conditions began debt are of as we high L.A., but completions conditions will giving markets, portfolio are improve XXXX conditions favorable XX,XXX the and

XXXX expected. ease New around units job should in growth expected remain strong to jobs to is XX,XXX new supply and around XX,XXX with

a with final result the with has Our place an Supply be the been the but XX,XXX growth is Similar units that COVID pandemic. healthy were we D.C. coming as new in A but well gave XX,XXX with Orange market over L.A., County, expected. jobs challenging improving job D.C. minus on given market a year, an put steady and this to remains should as many Metro, restrictions new environment of outlook. which Washington,

will we operating reflect improved While this environment to for low we year. are an that optimistic there, Metro have revenue mid-single-digit D.C. growth budgeted XXXX

details few year on full January quarter revenue X.X% XXXX. operating results 'XX and trends. X.X% was our fourth for the fourth growth XXXX a in Same-property for Now quarter

Our all the Southeast California, rates included Raleigh Tampa, blended Southern over Florida. XX.X%. XX.X%, quarter top revenue and renewals Rental leases XX.X% Phoenix, of up performers had up fourth for a new had for the signed rate quarter fourth for XX% and growth

I'll XXXX Annual and average purchases move-outs in over quarter XX% Financial renewal during line the XX.X% February home XX%. averaged XXXX trends to over the averaged last XX.X% of for sent fourth offers growth Jessett, with Alex our and leases. XX.X% quarter results XX. relatively for full turnover quarter turn the XX.X% Our 'XX. in levels. the X% XX.X% to was in XXXX, and with of line with And in an mid-XX% the similar fourth XX.X% were March for fourth of occupancy Occupancy from XX.X% has compared increase XXXX. is Officer. in Camden's range. the January slightly year quarter Chief our to at last preliminary January out indicate net now compared year, for to of with blended on January were year and signed and XXXX quarter up full reported 'XX call

Alex Jessett

Thank, Keith.

move our to update guidance, real estate recent results on brief our Before I on financial and a activities.

for two During XXX-unit development Dallas. we Nashville And acres purchased of the in future and of purposes. we mid-rise in land Denver constructed purchased recently Greenville, five community land of quarter in a fourth XXXX, acres Camden

guidance XXXX, a X,XXX $XX the full and have for original for communities acquisitions acquisition of total million, undeveloped with of parcels of XXXX approximately of land we ahead apartment cost our approximately completed million we $XXX four a total homes cost of million. $XXX year acquired of four For

North X% which the NOI, CapEx communities of on XX-month approximately development proceeds a Maryland total trailing of These rate, schedule we annual the on door. an on IRR a in $XX one community Using Hillcrest, operating yield. at per broker during over were cap rate $XX And approximately generating of we and been CapEx Phoenix, a door dispositions for per unleveraged assumes completed $X,XXX door million the management End X.X%. hold completed cap XX.X% stabilized Based during generating Laurel, Houston, period. of average XXX average $XXX in Camden old, construction we finally, Diego. $X,XXX AFFO fee on X, of in quarter, have and these ahead and rents were a operating approximate $XXX dispositions new monthly Additionally, a X.X% quarter, XX in XX-year actual would two years yield, an Camden And CapEx, unit, million million. with X.XX% disposed in development per San three a new

we financing shares the the under during program. existing issued side, On of million approximately ATM $XXX quarter, our

funds Moving XXXX communities range reported we of million results. night, operations by primarily exceeding development to outperformance or financial levels of acquisition our at same-store utilities communities. $X.XX lower of higher rental from per the at occupancy on quarter the prior guidance non-same-store taxes from and for midpoint $X.XX and and fourth our per rates share. $XXX.X our share, This Last resulted of and

same-store XXXX for of for year X. XXXX, growth X.X% compared and NOI of X.X%, our revenue, as growth same-store of delivered revenue X.XX% growth expense negative For full of guidance to and expenses X% X.X% for NOI. X.XX% original we

XXXX refer financial quarter supplemental can Page our details You package on XX the for to key driving our of outlook. fourth assumptions

acquisitions X.XX% of related FFO, offset in $X.XX $X.XX, FFO FFO in same-store XXXX an share from interest $X.XX cumulative by midpoint with from to our income This of expect assumed to XXXX non-same-store in our FFO the per per corporate increase and at growth share to acquisitions is pro in $X.XX driven share approximate approximately share operating our and in anticipated approximate FFO. per We X. from forma primarily primarily completed per and combination communities, per bad increase share results. X higher throughout of XXXX lease-up anticipated an spread late expense an resulting of increase to of $XXX in X% million increase lower the decrease by $X.XX XX%, X%. forma midpoint, initial This FFO a per joint At in is FFO in amortization. an an portfolio. $X.XX and/or in approximate depreciation from we $X.XX increase expecting in $X.XX $X.XX result An lower year venture the of growth income approximate taxes share are in the Each and increase partially higher occur from XXXX lower increase growth revenue same-store our per of is in of million yield be performance due and debt approximate XXXX anticipated the share our to per a FFO rates, balances dispositions XXXX, the decrease net share communities share $X.XX from franchise per of XXXX. rental share $X.XXX decrease an pro of to same-store operating growth dispositions, $XXX assumed development of representing resulting the X%. income our approximate higher and primarily margin per incremental retail an to during And FFO related cash X an contribution and our either from NOI in $X.XX primarily and from completed range

anticipated in XXXX, outstanding activity. to year expenses Our shares ATM year-over-year additional XXXX administrative, are effectively following management and full combined due management flat property decrease be FFO general share fee and asset and approximate $X.XX to an and for the our per

average X.XX% growth new leases revenue and is renewals. Our X% midpoint increase upon in an anticipated a based of XX% average in increase

assumptions anticipating also package on-balance of spend. XX.X%. slightly are starts $XXX supplemental million year to development moderate sheet our that XXXX, spread $XXX the $XXX throughout to including million with development for occupancy the other XX details will We of of for approximately Page plan million also annual

same-store due $X.XX income, in attributable from other And tax increases, approximate the decrease quarter of outstanding to ATM shares trends, X on-site property We accrual $X.XX expect January of primarily result XXXX, XXXX share from of the per for primarily approximate XXXX of midpoint fourth $X.XX to annual including represents year of sequential operating dispositions; a increases. primarily range per our in the quarter on share expense FFO, $X.XX seasonal share decrease additional in our $X.XX per an per to FFO first and our net activity. resulting reset per decrease salary be the from fourth of The within decrease XXXX an is of $X.XX each the an resulting share quarter the the from approximate $X.XX. FFO share timing quarter of typical to which fourth

net sheet debt-to-EBITDA ratio balance total fixed at coverage a X.Xx with Our strong, and at remains X.Xx. charge

scheduled our liquidity, existing today, next of approximately cash and As million unsecured million to no $XXX the late have equivalents $XXX amounts under two we credit development spend no of $XXX had $X.X outstanding quarter of debt years XXXX. facility. we and under until cash At over in end, we left have comprised pipeline, our billion approximately and million maturities

questions. Our points. current the up earning this XX we'll At invested is call with banks, excess cash approximately time, various open to basis

Operator

Haendel Instructions] from St. first question [Operator Our comes

Juste go Please with Mizuho. ahead.

Haendel Juste

bit. I'm but power the rates the I tougher we're more relationship more to that rates had starting all new comps, -- we lease renewals. pressure lease I accelerate a new guess which slowing about How in Thanks. question are a causing seeing come of What's the near the to best weakest see rates renewals? expect do face the bit so here markets think on color Hey, drag? divergence a to also and lease guess continue the and Appreciate I good you term? I a detail. on and The all we as market pricing curious morning. renewals new under

Ric Campo

Yes.

our new a in in place around on is or this rates, what moves market do is we going what's new something depending the to between Haendel would put we we submarket, that primarily lease renewal quite time which in do So leases might on because on gap caps. a From not rates. renewal of rates time, And environment. bit, not renewal something ever on and

the on team, it's day recommendations. a and pricing going it's our little trends looking day So what -- of kind at move bit depending to making literally around to

the we not expect rates course year XX%, the might I move in will in Petersburg. that as place. and as at leases had at some we But have would a narrowing to of new had at think X%. I on But as for you the a renewals done and the like Tampa, percent being caps unusual what you're renewal mean, would over guidance, I But the XX% to talking see XX-plus I quarter, that in that course markets St. have in our renewal that. first around. been couple Alex think much place probably has of renewal about capped that of out, pointed see a it's over year, caps

right off revenue -- of too making and and far recommendations. we it's now. where it's our trends revenue just But art at it's part absolutely management the So science and current are looking clearly, of not of team

Haendel Juste

it. Got

So renewal no you're in more side a on the a of seeing difference particular that note market form? meaningful

Ric Campo

we last pretty about I when all of mean, the the levels talk think rates XX of message data quarter. of say that that's and the would we of of all sent you're XX And both talking trend sets our lease about I growth first we the uncertain overriding I night. NOI entire that No. in out markets. less mean, markets over new with And across And this fourth renewal digit in I continued our double quarter. had is strength,

somebody at Washington always is So, at has DC now bottom. be the the bottom. to And right

And I apartments these for but Metro drag Washington we the when an market the really was just rate the we properties and was from a finding from that lowest where clearing that precluded of are gave DC there, minus is have A that that the we DC. communities think some that are the overall grade

first it's had happen in so And this out lot our is the of strength ever we've time Obviously that portfolio. there. a

Haendel Juste

Sunbelt Yes, well term question, longer Actually, portfolio exactly noted. which exposures although and they're this response is, lead my the on yes, very views markets. exposure your Houston I your for both your increasing me largest outlook comments least your you're curious markets I been other year. your the on guess haven't here, smaller I'm exposures to to second guess improving DC two markets, here, at

few sold past You a this assets quarter. in Houston

I over these of close next your So do expansion the for exposure how must smaller, some and years your become Sunbelt few other we into the fund to markets? Thanks. about you guess think higher-growth

Alex Jessett

years, exactly was that's the D.C. in. our were markets exposure down then more but get has to we in helped sort it think, I last makes we're years and the a clearly, over a this geographically to underweighted of been. strategy. sell call and our on sense. it as Sunbelt the lot. will It's us time, that about ultimately, definitely to talked there, And increase we going couple some primarily of lot of do that help do next which few Well, us to going Haendel, take it and has to strategy Houston use geographic the that's We diverge. diversification redistribution I and in us expand what portfolio Ultimately, mean being portfolio our the environment of a

in sold If XXXX And we transformed that about Vegas. I much last redistributed the pandemic. assets really average, we flow from Las XX-year-old you the fourth bought out terms the we through and in sold cash look -- cycle to portfolio how at mean, the on sold, and of

bought transactions, management XX% a and our portfolio our sales So then in did if around nearly really the when look we we redistributed also the total did numbers that XXXX, country developed many a of you result properties NOI as then at assets, was how where we relative $X of to we those asset lot properties. billion sold we of base that

And that. we'll continue so

giving though given of opportunity right I the flow sort environment now, -- of basis the the think very, amazing properties up that's lot low all hottest Those even this for not do market to of us it very gives a very it's that are spread kind cost to on where buy. they want people market sure. the in a we're spot cash

Haendel Juste

Got some demand it. in noticing difference helpful. That's noted the you say, versus Houston difference pricing selling, significant any given challenges D.C. assets Is of there or earlier? any

Alex Jessett

Houston XXX when roughly other And was to put markets, and markets in there they gateway -- multifamily almost was perspective, but XXXX, sales prior from to on, from just in there in pricing mean, the markets, XX%. what's were it relative because transactions. a the were sort year. that X% up And the non-gateway up in Early $XXX billion wallet in capital happened, of differential a vanished you is look I bit, at D.C. --

all non-gateway went. capital where So the markets the is

going and we and narrowed these under to with selling there when talked assets talked to equation hiring, we other to when properties. oil. has that's in about having is and for the D.C. that I us, down spread this think point year. to are talking, last on for those the no started year. the is energy So year, XX%. where is cap next about companies XX,XXX of part Houston, today add massive Houston jobs XXXX think the XXX,XXX Houston think perhaps basis bid The rate, XXX $XX I when XXX negative you redistributing year discount the And in or do jobs that about It's added And actually

lower to line go back to the over cities and other But jobs while all has not of -- oil so have is our going its because been in D.C., is still that significant has their have while assets cities district level -- the able haven't Houston from them its people renewal is tank Keith cities. we pre-pandemic Houston gas -- there's as growth thinking in all bottom in they added Texas a rates. And to haven't And the gas D.C., mentioned, the ability and Houston -- tank. they it the we our the Some some are really lower as have of that district, today, have XXX. to as far other then they in in pushed we cannot raise

have when number, good. even normal just you of and but number. and And there, just got Tampa original sort to of lit But the market renew Houston look I'm -- the the So a control ensuring at out it our you problem of at are have in Houston, year, that's growth. at DC a we're be bottom to Phoenix like the markets driving the what's you've we is

And slowness the basis, of it's we it's really perhaps more above when so mean of And trend is slowing the because the for I fundamental a markets Houston other Houston. have but there still I you think on future. benefit feel it growth in on good, like well start dragging makes

Haendel Juste

Thank time. fantastic Appreciate you. That’s the color. Great.

Operator

with Our comes next Bank. Please go Johnston ahead. from question Deutsche Derek

Derek Johnston

it a tax given seems any into baked Thank but be expectations or to really regards everybody. payroll to kind guidance remain Can in that increases you. rate favorable setup pressures, and to color environment taxes the expenses additional you seem XXXX in on Hi, generally on possible of largely the touch check? expense

Ric Campo

No, absolutely.

is of A in it's was just taxes X.X% that be that about million So significant to a going To and we already and check. tax anticipating refunds refunds matter property so cases an our expecting are are of we've give property settled that component $X.X about XXXX refunds large in idea, the tax of we're up XXXX. in about property million, receiving XXXX. some total the you $X.X

of the property of at drivers the primary being that's X.X%. So tax number one mild relatively

XXXX, The very, I'll well we Dallas, other bodes than rates Houston, in expected and in very that out lower Texas, thing both for that so much is originally point had think I came rates XXXX. for Austin and

If about of -- the you our the of rest categories. expense think sort

a about seeing and We that A in continue controlling on being salary spend. side. efficient prior same our quarters. the do thing talked is technological advancements of the by job we're lot of more really the marketing to And good driven I've that with

If importantly, relationship you think of on that and the some all also smart then we've all for XXXX technological that beyond. the implementation which platform. teams of process place for including expense and and installation it of our self-guided And also the about ways, advancements helps about, inflationary working provides counter which improves in funnel our maintenance to entrance then customer automation controls our improving AI experience, is our marketing put access When only efficiencies tours. sales through also talked sophisticated facilitate not also tool sort you all management we're then that customer of most and in and then we're

So driver, why number. and that's pretty the that's about X% feel we good really primary the

Derek Johnston

helpful. very that's No,

quarter this even certainly acquisitions in the costs. and show a commitment mid-rise yes, a construction year, to develop labor land material So last n

project makes project for to What go? acquisitions, minimum down in rising are to what of the kind mean, encouraging Xs. high like, the or go Or tight And a So, to to rates new I rents expect what's a apartment so you now? at ramp you enough yield especially further when make stuff to you what especially any yields on mid- development the look would cap would starts? need new are what's development you the tipping yields point?

Kim Callahan

are mute. on Ric, you

Ric Campo

we what risen have news And good when so is faster IRR rates -- clearly, that you costs, are at can at than about you deals that And Development is unlevered perspective. the pretty rental over from amazing. is least period. which a look the talk at construction look X-year it in -- our cycle,

we've data million plus the rates. finalized, already million take under to have you cap construction if give that we the points, XXX-plus the you Just $XXX have -- some we $XXX

have the we're in look that rising like yield. the Our sort at interest average roughly initial rental at pipeline Xs, up are formas. of or X% of in those rates And to of really haven't cost billion, you the numbers be Most we actually pro on have, gone our When yields billion, on the rents low of probably. $X.X rates going in rise that. to going to we those because $X another stabilization something or roughly is Xs the both updated that sort which looking the

look low So cap you think is option a development Xs yields the the in making. and reward when and rates that returns X, preferred about we're risk at existing when a you the clearly, in

a pressed $X and And or have our our will you the our are least pipeline. take try over to $X.X to -- midpoint And start little those $X business peaking. good billion billion the We forward-looking which our to progress look is this construction up at starts, a development to expand obviously, numbers of of It's challenges, up also year, really if a now. in people billion. the pipeline we're of back to right one

So long-term obviously. we're holders,

$XXX ask really But hopefully, that to those and usually a million what cycles. through million we're go $X you year. next -- me, just double year billion, do if just pipeline do. $XXX $X can billion a it takes we'll and I this And could from we development like it’s our maybe do -- hard to get to we you mean and work something we year, to I So done. and And hard give think

$X the margins, comfortable billion billion, at we're that in So $X range.

Derek Johnston

Thank you.

Operator

from ahead. with comes Nick next question Joseph Citi. Please go Our

Nick Joseph

the first And XX% year the Thanks. then the increase to does portfolio? for the of lease versus expectations loss What's for new How in assumed half that in your look of the year? leases. back the on half current the

Alex Jessett

Yes.

So if dynamic this we've you slice because different of sort ways about at talked and there's loss to -- past, look current lease pricing, can lots you number. in there's of the of as

XX% sort leases new of range leases place, effective we would compare If and you look signed at all the in put of now. you to those December right the that to loss to the in in that XX% lease

that's where So of are. we sort

are start obviously If roll seasonality quarter you very first sort in then and to are But of we quarter of part the think strong latter to of third kicking the sort our about get continued towards the and numbers third and peak out, periods. fourth anticipating we're we quarter, the anticipating second the way in XXXX into expecting quarter and quarter. we

a So that of see to coming start to down. lot you'd start back see

Nick Joseph

in XXXX think What the Thanks. third just quarter? in And on that million had what number fourth rental is quarter. I the guidance? $X.X in then And assistance, assumed was you then

Alex Jessett

absolutely. Yes,

$X.X fourth the million million was the in $X.X the same-store the On 'XX. increase third basis, to quarter did a in quarter, for that million. of total. quarter, So a third $X.X was it That

got for us, gave we've that about going And in in XXXX. assumptions our recognize XXXX. to today what basis, So a that amount is for same-store $XX.X we're million about half that of

Nick Joseph

you very much. Thank

Operator

The from Brad comes ahead. next question RBC. with go Heffern Please

Brad Heffern

growth. lease last that just Hey about follow-on new as question everyone. a Alex, to

like in to that double low get plus XX% of sustain number some the hit you the it January, just seems second and before to half hit have like number averages you year the You it comps quarter mid-single-digit tough. about, sort But second through the the really seems the of it the talk averages. digits can be probably will in

is that expectation about think should So where And is kind we now? market for we are right it? way of from to the about as growth what right rent that your think

Alex Jessett

Yes, absolutely.

pretty that's of way probably thinking think I a good it. about

the to of and over be in sort at XXXX look growth it's that we December think rent sort of of think partially we to that able If to be year. market going the range. what you throughout to the to loss going got of then lease the call period, December to And XXXX is we're recognize X% rest the obviously it, you've do X%

Brad Heffern

Okay. just debt? Got from have your this in sheet, come balance balance the bottom to funding it Should cycle? dispositions normally quarter, end place then range. you for desire to ticked the the cleaner on maybe we typical those 'XX. in do below X the Xx would it. sheet a given the keep beyond curious Or that of I'm And you will be the expect obviously, than needs

Ric Campo

the have we of investment acquisitions X% X% we have range. view in as should when equity the net-net we've always debt-to-EBITDA that our dispositions a but to below stated we result spend. take Well, obviously acquisitions that a plus We're or have net a minus development issuance, also

frothy books into debt when X% price into capital EBITDA then execute ability our yield AFFO and acquisition all time you be back never but the we'll generally what's So the at get very seen permanent under my that we'll in that an on that, with the equation. career. look to But deploy business market, and I've stock -- part to of the our middle today, capital on put interesting it's

that So when in band will, source we And I to for a to we debt light it's be think to us but every we of equity, issue issue use it's we'll and will have generally. band. will, opportunistic capital, when in continue stay to we that opportunistic green

Brad Heffern

you. Thank Great.

Operator

Capital go Our question ahead. Please One next from comes with Neil Malkin Securities.

Neil Malkin

Thanks. Good morning everyone.

First question, a little bit bigger picture.

pre people same divergence have you're XXXX guys kind almost rent thing. the to expecting relative to your levels. and and of then as being coastal And sort where at seeing happens, I've to kind a strong COVID and wondering, elevated you time, of return people California. of that very into DC office sort of But like in-migration solid or by growth in just in amazing of I'm whenever the heard some are Sunbelt have to market normal levels maybe exposure Coastal obviously and markets of extent, you like and a to things historic the incrementally unique Sunbelt return a a the between California positive seeing growth So have Southern evidenced insight pre-co-type you between kind mixed of

your California if outflow And in I'm view impaired of growth you're can a seeing you next, given just population terms growth, this years, little the So kind wondering bit in significant X in Thanks. what be just of California? kind see give job may migration, just Sunbelt versus think you on over if you of of businesses call it, people. the and what

Alex Jessett

Yes.

normal So the Sunbelt mean, our Sunbelt years in markets do plan migration -- thoroughly when markets unique that it many general markets, -- of pre-COVID, have And on pre-COVID to be to with a in going the for to from the operated the a when And accelerated perspective now. COVID. don't in trends our COVID still down we've think that patterns interestingly coastal normal a on [indiscernible] of with of really to to clearly place be I is in that but XXXX not pattern, we going game really California, inexperience, But during bit the in was have particular, the portfolio although plan, already left you're our for drag back California little do reasons based migration in Northeast, COVID I more was with the all an into California for accelerator. settles the view enough, Sunbelt XXXX. that that a anything because is

particular in and we Clearly, job growth really some regulatory in have number improve a have in County that in anticipate kind California. in we that -- the new XXXX. But that, fighting the puts place. So versus you of construct will do L.A. there, the good -- the market still happening still of that's difference starts

metro more think we D.C. proper DC going the portfolio, experience minor place, couple relative things. of there's -- get are the to outliers relief. there in balance suburban our the as Ric in issue for but markets metro they're of in still some overall So of The scheme in to regulatory I us. a D.C., In the where a are some D.C. mentioned, is constructs

get are already now, the in don't they're think reset that both well lot markets. market. both And and of. different just throw Houston a of we to a markets it kind going the up same regulatory look last from Houston. larger in as the years passed is timing. at sense include for a that come post the America rest we of basket to out as of post-COVID, I our XXXX still D.C. haven't the X metro And of of back this the to has bodes roll and us So midst got in -- we of the to rents not be clearly over as in was markets because I California have in -- It's as going going going come we're that we're going all there I time to D.C. already through think reset Ric to the going constructs in those through other XX% reset gotten of get in mentioned, two then mean well that in and that in didn't America our

we're fundamentally why largest which metro in nice is in think, a I for is exclusively than due our through So of of going the in markets kind which and hasn't the thesis investment the why the changed is California X about we recovery our others. California, reset post-COVID. are where market, D.C. different are for But California and we're a phase that primarily Southern in view Southern,

Neil Malkin

of kind buying I understand capital a curious at side. discussions, a mid-X having you're changed, Yes. like about three bullish to make year if is great. when your standards I your I'm low to putting underwriting And rent appreciate to through uncertain that's thinking And IRR lot changed. and rate obviously, about acquisition exit of changed? just has the just I growth And would at X cap And anything have you on assumptions be. -- cap going just cost a your color. cap. have targets on the the X unlevered what But it's your that at you internal I of again historic capital gotten maybe mean, of mean, then or just work. in have that levels. so comfortable more just terminal those see sort Or you're

maybe positive leverage expand even debt higher if could And to an get you'd that. Thanks. upon just year? use you this So if more so

Alex Jessett

average cost do your weighted debt the adjust down, cost rates think and It's cost the capital your current a capital capital. of just and IRR. our gone simple you it's I of your plus cost -- cost Well, clearly, model, compare of right? that to our equity and unlevered equity, based has And on our we

the that's a from up crapshoot. obviously number rates is generally to be like But is going that. can which So XX which do the of price and So our move acquisition exit what very always cap number to all cap math. initial is tricky that our to one right? right, number, years, and use period. We What points, and -- our a that's X XX model by a couple be try you of being rate, that in

going you like in using Phoenix, an go if a example, In yields, terms Nashville. X today though, for of underwriting today, or -- only in where we example bought actually we in mean in and buy when property we I

in So X year, in we in national had underwriting we the May. properties our original bought growth, last moderate we those bought and

as to markets. have we So think up we and to that good did. we move of that were going it's as but didn't know wave didn't part starting big sort realize rents move fast they're And we this knew we didn't happened, up, they

we because on of a the is, increasing where forward. And our depends And pace year are put underwriting a growth that we thought today. XXXX XX through little rent today, then moderate a definitely We is role of So by start of at be faster in backing that doing. of outperforming XXXX. but rents the in are the our just last all acquisitions in margin we what different may first we substantial off and it months acquisition

cap the in XXXX were low growth numbers a is have you're X.X%, As we outsized moderating better-than-average X%, going somewhere reasons, growth at in saw on And then of growth that, we in it we rate even we XXXX. historical it product when numbers. obvious long-term for is. start the pretty the -- in and XXXX work low these to around to well numbers because average And where depending still after the get use better because generally And numbers XXXX.

capital comfortable we're over go average have make have cash up or dramatically we're So prices long-term work. spreads underwriting cost go of those numbers making that we not up weighted that good to and much flows to so our

Neil Malkin

and nice Thank great. you quarter. Okay, guys

Operator

ahead. Please Sandler. Our next with Goldfarb Alexander question Piper comes go from

Alexander Goldfarb

Hey, good morning down there.

So a few questions here.

free First, the year of probably off markets your looking of rent you really or much very D.C. the but material few this year? getting maybe Cal. and Southern rent, this year from the how growth guessing rent from growth, burn free are rent I'm of last at had

Just coming numbers? curious sort the just this is year's year's growth much of from free how of exploration of rent rent in last

Ric Campo

offer So we concessions. don't

a not And so factor for us. that's

Alexander Goldfarb

Okay.

top handheld's I question. growth then that think of to it on was the So X% question you're Nick's rent or market to expecting, X% that's mark-to-market. The

So basically, rent? it's all face value value on face

Ric Campo

Correct.

Alexander Goldfarb

Okay. Cool.

is question Second on markets.

entered Antonio. to but out jump markets Salt guys San and just that and other X You seem would be be Nashville Lake naturals would

guys appetite for you how on capital and from So look as D.C., new what's entering from recycling the Houston -- additional markets?

Ric Campo

Well, we clearly Otherwise, like the there. in. we're be we'd markets

we we're markets, job there's Voice going depth of there to enter entered did the and did that has it good. employment a now. say right market allocate looked of there we the grace whether and clearly it because we over, good of going because we where in there. try couple of They Charleston. were are markets are way out, to smaller it Antonio run-up pricing That -- today not like said, markets follow to have markets under-representative kind at don't get we new going to We to of things we markets and at But the But kind to have moved on have think entering enough the on capital Texas we done other market. on. been we've Salt and basis into markets we Those a our relative term. just when without that we got And really unusual really these was we the there. market we capital markets we big being market, out like a generally see places enough such in think San just AT&T of Antonio ongoing didn't markets. close headquarters. I and San an pretty new and allocate stayed interesting patient to have Antonio other kind long a run-up Lake, basis. of rents looked enough did need we Nashville -- to early big we San markets a an today, in always and Nashville, decide we've in

Alexander Goldfarb

Thank Okay. you.

Operator

with go question comes John BMO next Our Capital Markets. from ahead. Please Kim

John Kim

pretty as figure directly Good of XX% to morning. quarter, XX% as ago. Shouldn't market, leases a fourth it's those least lease, to which which just XX%, XX.X% went are up to XX% loss those in versus your I of update wanted of follow But be months to I aggressive XX% assumptions. to think rolled XX% now only at mentioned Alex to on maybe versus is your high the the XX? and all XX that few

Alex Jessett

this effective is you're that signed the XX% up a you the during of up And rents. make quarter, and come month you're level. of a to sort with pricing, the and effective single you I we at our if trying right? asking leases you actually December differentiation sort And those compare That's telling to every think that was I the of between day. our about So a you to look as say, is pricing why where our of different is a that's come to And going was rents at Yes. snapshot changing if this going you if price dynamic XX% number. to with take to the compared end you the right? What

different at X ways looking of it's So it.

upon drop where so a tendency, leases of is a rents, at know then then ways based whereas pricing at there number, lease this. probably sign XX% I in there's pure look and of to we not is we XX% be sort X% that here you're environment good a lease go it and to as the typical to is that we're increases, right? it's to of I it really In way will dynamic clearly, amount pricing, is unprecedented when XX% you But look lease, at think important a think and dramatic. sort look back look our asking of about yes, loss ways. to to going an it'll up it that the renewal sort with little that different with a along like typical a or But ticking drop and two environment there then talking at better both just X% you of loss at as a If new is about and it

John Kim

at your the get time, that same rents I the Okay. seasonality, for probably much guessing. see didn't market that. I'm But markets

would being that have that I a further So thought would been have support from higher? number

Alex Jessett

effective We that look certainly seasonality, did the can at the versus see if you some see you sign. and

So particularly that's so December. some and numbers we month yes, in the did math, out. are how working of But the that's seasonality, see our

Ric Campo

here you renewals What's that's -- up. very lot period have major it number we where it supply, you all demand second people they and robust seasonality high rents derivative, this see of years, or and the we market XX very, from Because at coming didn't a amount it in equation we dramatically usually, happened that. like the year was just third the which very is just a you're to you seasonality the we're the negative this quarter getting in normally drop that just not more see light had interesting occupancy keep where what still whole during if decrease usually have. probably market, third was is is dropping in slow and and number or The very, a have had this the more for because generally wouldn't back -- you rental than which but in where rents into really wouldn't slight demand a occupancy case. more to not quarter, just market go -- multifamily -- you kept fourth a and that quarter we pretty but have not was happened second share seasonality, And the any is lower had the and like it market, dramatic the like that keep you created year just increases slight dramatically

John Kim

Right.

Ric, And on development you mentioned starts. are IRRs what in Okay. expectations development

we rents last What modeling development You pipeline, much come this be just at yields have the X.XX% coming up had the XX stabilized in existing should for in period. months? given X how

Ric Campo

cost all than existing mid-Xs, development but haven't be was with that. this with of one the those of new either. them to point really we the remodeled better remodeling sort rents, but at just where we it Well, of without It's it's pipeline in haven't going our new remodeled probably pipeline things also deals

hard higher think to and we'll are So development quarter third would projected, through now. have do occupancies we be yields it's especially first now in than -- you're of I right the right initial on our when at will -- And talking report about we're quarter a all and tell pipeline the pipeline quarter initial XXXX. the our second looking occupancies but

us today, we're not do try kind to that of just going for that yet. to model So to and

pipeline. like the it -- looks pipeline and good this robust be pretty line development is So will the bottom a that

Alex Jessett

the we haven't And that’s started. pipeline that communities of

of looking there ones that north X% we about think at you started, have on If we're yields average. the

John Kim

So of be that could one-off? X north others truly Or was X%? there quarters that a

Ric Campo

were them X-ish. like were underwrote But when most in high that tend -- those getting than of over those. X% mid-Xs the California or properties the urban in properties, them in we of the the But definitely, to that to We another have be outliers Phoenix. to Xs when Xs, in Xs, in those example, originally -- about -- the real for better ones, are think you the we're the and going hit And on that some these amazing. Xs is be And low compressed there, cap highest so some are is cap producing at XXXX that today the talked the of if X, where given are him. development mean, rate, X.XX hard rates environment. probably to value 'XX, The level you it's or and probably much. in But about creation higher a ever X% about think I you seen cap do pretty X.X% said have are and rate I've margins that you this at I but you're in generally

John Kim

Thank you.

Operator

comes from Wurschmidt Next with KeyBanc. go Please question Austin ahead.

Austin Wurschmidt

the Hey time guys, you for thank here.

into on that are March? going renewal your out curious Just are rates and February leases what the

Alex Jessett

Mid-XXs.

Austin Wurschmidt

your operating Thank of total Mid then the give what expenses. is you you in technological that us have or a you few to some next getting of that XXs. and you about the when years? breakdown talked savings Great. Can sense advancements amount capture left and over you're the the that

Alex Jessett

ultimately, to the the expect through this. take XXXX really efficiencies we effectively rolled tell that that hold solution, really order we're continue in trend all obviously, is to you Yes. you moving we're I XXXX and must And -- forefront and which of beyond. what the would tours. on in I towards we do tours. Access when as self-guided self-guided our out Smart said, And have is It's

which we we're in forward. to to towards. create right is I big go especially as going we're go going And to driver real next efficiencies think, building thing all working then forward, I significant be the we be a the if is I process virtual sort we going I out of adding as which think our think can that's now, think some the agent, that of leasing start wayfinding,

about going into So XXXX we more about be, and even beyond. the as we're XXXX latter said, today, of really to where excited part where I excited are but

Austin Wurschmidt

Could give you the to a in sense how years quantify how guys play are us however that at could big is potential creation, to savings out come. NOI or it you of looking that

Alex Jessett

as we're well we're coming flesh guys now, the But with and very think operating information expense you, inflationary we aware X%. of give I actual we in will growth frame we that right you continue better I and tuned, dollar time are out, to, all around a tell will amount. out Stay this very

we're that quite see to capturing bit. start can you So already a

Austin Wurschmidt

Thanks Alex.

Ric Campo

more quarter call. in next clarity We'll the on that give

Operator

ahead. America. go comes question Joshua of Bank The next with from Dennerlein Please

Joshua Dennerlein

I -- I that through of you rate assumptions get the I of us the guidance? us you're to to on particularly walk was I mean, focused your assumptions low guess guess could there? get the end assuming kind

Alex Jessett

Yes.

us the factors I If is Here's different. what could little about be cause the a to bit you would that probably below midpoint. tell think I

is something that right? or And anticipating we're Obviously, about million wrap, XXXX had item, of We $XX.X $XX right? debt that's a is big that very that One we ones million then and variable focused the bad of XXXX. in that's about and talked half on. in we're very

you to in XX.X% tell from down I'll we took occupancy thing XXXX. XX.X% that other The is our

But there and how third all good quarters. there are about are macro which watch does the that very to And see more out quarter are certainly things we're And so shake side, on we'll we'll the very, third fourth the that -- very, mean closely. then very obviously, how we out? I really, factor feel business. our is the third affects that watching, there and and fourth have

Ric Campo

taken markets the an normal. seems as means would take running of have add by variant. suburban adapting today's we're just then to be first doesn't new renewal in endemic we have curve California which there regulatory it bets all I that And can off in like the believe the what controls improvements we've some who But of -- retreat environment business. lockdowns and impediments to And return been in table about as you -- caps the a does in one to far or -- policymakers on the pandemic it are and where people behind X.X take we that, get place that of of thing our impediments to bit of denominator and real proper place. kind is and reasonable when some heading years. do going do things again. start off hint estimate they D.C. these are to are lowest that common evict a rent made rental versus it the for is D.C. you talking still little these things And in for Can you who towards paid haven't that,

that Alex's different would portfolio. I be we So our list what's in of could headwinds where just for of out there are add that to create kind and

Joshua Dennerlein

is what's Or in, normally something you follow-up the that and One there when that you're to Got it. factoring that occupancy, of high? moderation more just kind seeing? specific what occupancy that, on you're is conservatism this that driving see

Ric Campo

normally occupancy Well, see don't eye. we this

see record first that that's that type occupancy in management at as make to and yield bit. of out we're pushing curtail natural looking that are sure occupancy sort that levels obviously, is that X you occupancy. these to and the we're point that expect levels on software that effect of of watching the rents I'll would we the And a little gets we of So things of our to are closely,

Alex Jessett

-- and XX. this We've been doing for me. conservative to doesn't X% feel

Ric Campo

where question, the from. these Take all people come

Alex Jessett

pandemic, out had think government jobs, right? probably when you is they from come checks. razors has started it folks the thing is facing of the with think what from make have issues during came once And caught were room that you you have two, market. X million got there got up number because And folks scenarios of the stimulus households. we're releasing like this matches or with checks form there everybody A the were pandemic. lot at people if that think still happened of you But think home interesting employers when that and woodwork, then about today. then the it those the -- did It's those one. so people demand. because more up Number about are what missing they they I pandemics, about potted that are millennials And are then It living

by end $X you $X.X you we trillion there of So trillion now I had of -- excess savings. when think the year, excess it, about last think of savings, about have were

the if been you were long. potted COVID So you so and have being people weariness for around that've from and around up

did I had it as tightness just lot of didn't the think massive got government good. run is of our demand And an and labor markets have pre New up who pocket, of as in the in in as a result that and didn't You funds force and came and out late a happen a and it the them a York opening you've in your California now all form fast have COVID you've Texas household plenty especially but and of got or money people because life apartment go Florida. this job of because But you sudden, a out now of have massive stimulus.

Joshua Dennerlein

Got it. Thank you.

Operator

from comes with John Green Our Street. next ahead. question go Please Pawlowski

John Pawlowski

few the you the me for completion between the pretty details can Because there's outlook? letter sets bands team a grades and job give Keith, on big ratio. the how the disparities and of boundaries

X a If at you jobs per look unit take Atlanta, deliver.

look take the and You same the at same Austin grade a sub-X outlook. through

be commentary So any would additional great.

Keith Oden

But our driver, primary model. out. just looking the growth forecast driver looking is X year in move primary somewhat. I only around at for would probably year. And given at forecast grades, the all, is, of were John, X-year letter revenue We're The we're Yes. first looking that's they if

so And do, cost don't to if you assistant curve, it have a of didn't Texas. I do XX-year-old a University as and accounting at which on grade the graduate teaching

Houston. given grab when plus minus at my a any And growth say to So our will and portfolio-wide up year, go then in book for in I'm revenue not year lowest any at year, it X.X%. Houston for in A change, the A clearly from an going the is you while comparison for of again, in which now. I sort curve. solid in always X.X% B tails That's portfolio it's And you DC that's to worse, average, because would don't there but to a A change be. forecast certainly. your And the entire

So all disparity But it's year. there's not ratio that forecast be the it our our where submarkets. honestly, We around that things right, budget and know that on tends what's on that things. submarket, stuff swing revenue XX-months going you're tends delivered there's the -- bottom-up process -- those ratio to built the over a take delivered assumes is into we to not in quite for consideration we being bit that all as the and not And disparity our growth forecast. the of -- period in exactly to gets do because

class an and So in every I this student still them student this say year. look at is A

John Pawlowski

now? D.C. you kind Do me. been a I'm helps. curves That gone to understand the of One right growth? for structural January being regulation trying you it final us give earnings would have see Okay. sense of just what on around Could X% one of X? revenue had power

Ric Campo

-- and variant -- scenario basis freaked affected forward, So you year, the do be huge XXXX was -- overall model proper results in and kind as points. D.C., year overall yes, somewhere midyear, a wasn't thinking XXXX. last use some going said, a to -- is stealth new some you what it's in retreat relief balling It the to of there's at we well. the we not get return past think kind a about you as a look D.C. we that I old about maybe crystal thing. of in And that's huge forward-looking our XX of if in portfolio. year and normal. a not get extent, our a in the markets wouldn't in expect around probably it's like construct in of our I'm to out going that the the possibility to beginnings mean in and get people that certain that got the portfolio-wide -- it our deal We've reasonable and habits. the But I will see again, process always suburban past that's But

John Pawlowski

time. you for thank the Okay,

Operator

Goldman question with Our comes Sachs. next Luthra from Chandni

Chandni Luthra

this and keeping going. thank afternoon, call good Hi, you for

trying about presents? your year. that? But if answered. Will in questions situations Just most opportunity this aggressive thoughts expecting will have to approach? gauge would been are the to around how seeing talked So approach properties that? your Are developing? peer similar stabilized later acquiring you see be And you how of you you my seeing more opportunities yesterday or potentially What for

Ric Campo

starting change. the and Sure. second it think liquidity interest when and and because progresses I not that have market. year they it's recession gets slowdown -- rates guess be any a the just supply up supply you're And about think forecast now, that underlying depends right still Well, going Fed of there's capital it, up, start based they -- a will, a what I ahead great the I moving Fed we wall sort rates the worrying in I are I going we're of through least think acquisitions. they Maybe go don't to people if the of But to and think about liquidity think rates are sort really to of don't the then about in what think seeing if pricing. on or dynamics If that's pricing biggest economic interest don't real still when Fed some at market, there'll and competitive is massive and have liquidity all demand there's and still softness you fast about moderate you'll and activity. going worry economic fast. one. people too you an I -- demand estate day the think does, acquisition right? on And is really there's of issue and way rode about it you don't about and sudden, itself start

going And is demand so liquidity and great. and is away not supply

And about so issues ultimately rates. start then inflation thinking you then and interest

assets cap for think pricing for rising see multifamily don't I And this an opportunity better or I rates year. so

We there's few of get little of fair $XXX recap in a world. billion our the a will We transactions. can share. our corner And

for able blood I So a I going but still test to that to we'll buy properties, be think be sure. it's think

Chandni Luthra

tremendous migration Sunbelt, And XXXX robust. and has obviously, a tailwind been XXXX sort through as perhaps then of Understood. was just the for

time of I that reversal mean line who those signs coastal you endemic moving I thinking virus, X But we now that moved stages from of in any perhaps temporary. as signs any become habit As is permanent understand and from yet? about regions in a about do maybe see and back? the think the XXXX, years we are this long are things

Ric Campo

It's interesting.

XX,XXX Florida If in through and Florida Texas. you the had look were domestic average versus largest two states a at from people markets that thing came in migration And Same for XXX,XXX more California. the less XXXX the in-migration on people 'XX most to York domestically and XXXX, the in had two were and from 'XX. to New Florida -- lost Florida the had We Texas. little go

markets what highly of and. happened the markets in in mean, for the So those Texas this migration Keith could people Florida And to pandemic is open, mentioned moved restaurant during out going a go other or were on I earlier. high-cost, you been has because regulated

their part have, I when run to equation, going going that be buying you're have don't job down economists reach specific need situation. you of we think going or office they're to New And in because a you're think don't we're because most York back -- so move of because and to and California okay, houses to the they about yet the think apartments, that place and to really to don't

people mean to you're move. I California people the economies Sunbelt still So the normal [Tech good I York peak there's large Keith comment the and is place housing at when years. what's regulation have with big we to the don't going clearly, New have want less been its if with businesses pattern, are And probably But are driving prices the out for they'll there, not continue margins, going the and people that's last there. live spike the the live and will which and a weather, he cost away. agree in think made we and in big the lower or I to big -- -- XX and Difficulty] still be love forces that

natural immigrants generally. not keep and that's population of so plenty -- going happening, other that's from to well And to actually term I mean think that going birth because from they're that migration just have long to and they going doesn't in do that immigrants but losing

Keith Oden

is of of quarter that In were 'XX, our from Sunbelt our leases outside XXX of the in our year-over-year. in fourth new Sunbelt, XX.X% the people a of point portfolio, and all basis increase

seeing point, and Rick's clearly portfolio, it accelerate? we're our seeing to continuing we're to in So it

Chandni Luthra

for you Thank remarkable. that That’s color.

Operator

from Barclays. with Powell Our next Anthony question Please ahead. go comes

Anthony Powell

rates a flow to do in development in markets? impacting over rise do capital I maybe into Hi, how schemes the in of on, guess, good the to seeing versus calculation your guess, in affordability decision afternoon. you markets. question that housing your and we're start-ups And long guess, rent own, expect I I that see impact How of markets, lot buying, rent the lot run? your you a A

Ric Campo

really They're you to as they rents our remains period didn't still good much look if over portfolio. a up up year. since rental just X%-ish it it as Affordability X-year rents a XXXX -- in average whole with the and raise we basis went are, you even on going in at have relative for

they're talking big rent and paying people higher like increase wages having rental X% right? X-year So not that just a You're -- up. from X.X%, it's higher over a problems up plus going about these and are increases, is gone with higher and have period

to very So rents you incomes. our markets still -- affordable. relative are when look actual at

The the rentals. single-family equation other piece is on piece of the

that, it's it, companies So interesting they figured run good. how single-family clearly, the real and have that a And which really is to out rental proven single-family rentals is market. are think really public I thing, a

average a to footage XXX X,XXX more -- rather They that You square when the square to to is to single-family has. square be than moves someone foot think tend somebody they have They urban. Camden goes people, for most a if apartment so feet tend it about reasons. suburban average -- compared rental, buying when -- have reasons, space. they're money you think a they They not house or they about house, doing a social doing it more leasing -- for they're space more kids capital or need need just be

-- buy don't rent miles we've want than lower an substantially. And it difficulty] that have it so Midtown, are leasing Houston -- than suburb is. XX downtown in [Technical the and urban people be average don't because a to you when married. which with a that you mean they're the your do out not downtown core, the I in occupancy is say said, if they And have They but of Houston out and kids. that's had never core, in cost and you or have urban can go in house

position, kind thing. not really or more of because it's space, And not and it, a the in drive -- rent whether the can so to house not house affordable -- drives not I for What really do kids that is you a side they're people a go go buy or need that. of social they money it's that’s than older -- have

has here really and yet. that -- XX demand our have Houston we So have than our occurred more change because and XX% we obviously, we're supply market, to still occupancies in

out rent You for for suburb the in and than buy lot house can a can go merger. pay you less a

Anthony Powell

it. Got

the So it sounds like on focus into you're with SFR yourself not adjacent content fair? time, over to multifamily. Is get looking the that space you're pretty

Ric Campo

lot. And get Well, into the a And interesting at to niche. we another looked is a I big, -- would question think things it it me, like, and decided, cycle space, whether normal rate a for our independent tested just there's it's independent we just it's was we've the of of the very project. And example, in that tested market we we apartment different we than than couple market living. a did deals living an once

going We wouldn't that decided in segment really than over operate operate area like And expand efficiently; the we're we it. Hilton we because that. long it nice time. period apartments some -- our it's another model is we just to it's single-family So of way growth see as can how we an interesting might be dabble it and think we as a

Anthony Powell

you. Thank Great. it. Got

Ric Campo

was in are well questions time the other some see Thanks. time. queue? take last we'll you we the that think and -- any one. South Great, I care, have to appreciate we in and and so you don’t we talk think I Florida, next we'll your of

Alex Jessett

Bye-bye. Thank you.

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