Mid-America Apartment Communities (MAA) 1 Feb 182017 Q4 Earnings call transcript

Company Profile

Participants

Tim Argo	SVP Finance
Eric Bolton	CEO
Tom Grimes	COO
Al Campbell	CFO
Nick Joseph	Citi
Drew Babin	Robert W. Baird
Rich Anderson	Mizuho Securities
Austin Wurschmidt	KeyBanc Capital Markets
Conor Wagner	Green Street Advisors
Trent Trujillo	UBS
John Kim	BMO Capital Market
Dennis McGill	Zelmand and Associates
Rob Stevenson	Janney Montgomery Scott
Tayo Okusanya	Jefferies
Michael Lewis	SunTrust
Carol Kemple	Hilliard Lyons
Buck Horne	Raymond James
Michael Bilerman	Citi

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Welcome to the MAA Fourth Quarter 2017 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, the company will conduct a question-and-answer session.

As a reminder, this conference is being recorded today, February 01, 2018. turn Finance over for to Senior Tim now President, Vice MAA. like the to conference Argo, I’d

Tim Argo

Thank you, are Savanna, Grimes, Counsel. Argo, CEO; SVP and Campbell, our good morning. Finance Al DelPriore, MAA. This COO, for and With our CFO; me our Eric Rob our of Bolton, Tom is General Tim

Actual in materially begin we and yesterday’s that the out may our audio comments morning’s will as our this an of of part prepared making along that refer encourage be company be Act I factors you management SEC, results. differ future filings morning, copy statements to These reports copy on Before this of our earnings with release will results our forward-looking We projections. and the statements. website. impact the with call risk from section with point want may comments discussion, to to which available prepared describe a ‘XX today’s forward-looking

also non-GAAP I’ll now in call will and data. our financial we found call, to Eric. supplemental over discuss earnings be Reconciliations this financial to turn GAAP can certain During release measures comparable measures. the

Eric Bolton

in performing, expect fourth balanced steady with properties point secondary has point locations our same-store results for Thanks, in is in the located this diversified were Overall, call number submarkets cycle. price results everyone. price some suburban, for moderate levels MAA’s of and from in a higher our higher markets. the quarter strategy reflect impacting our the line been the as higher at Tim at properties, FFO pressure and primarily Thanks mostly joining our in captured expectations. would supply the more this price we portfolio of morning. Leasing performances and and morning good our fundamentals of supply new offsetting

online. to XXXX, as with couple in supply believe continues over with we performance we’ve unfold As initially what new last of will the line quarters, come leasing year we seen consider much the

leasing However, permitting trough continue growth trends that trends to for the with nearing we peak comments, Tom continued on performance course what this in results more in capture line expect of while early we very the continued in his details and pricing job we year, is expected. based in improving for the and construction, January moderating the occupancy. new are enter highlight with season. of we is as cycle, believe to will that we with strong good January

in XX occupancy In daily January ahead portfolio same points of fact, same-store basis the year. the was point last across

pricing occupancy in needed rate and last the provides we’re positive strong of ahead effective year. in of pricing January encouraged support was the traction, for same-store growth that this the across Importantly, portfolio slightly January

years, coverage over not that past positioned confident our only solid importantly any opportunities in the goal optimizing stream. the the for we’re might well to downside also ratios, long-established the with strengthening results earnings of built of deliver Our the strategy MAA’s around full to protection we’ve over few solid sheet continues but for investment emerge balance that year. cycle we’re a over coming the compelling support various And accomplished

focus region and strong Sunbelt after, we’re We shareholder results continue continued best growth capturing long-term to our on affordable of region for to the more for continue markets focus support strengthening the and cycle that where superior feel of capital the the value opportunity that creation. strategy full growing the our job economy appeal the offers the we

productive portfolio while will represent become drag continues pipeline at up to units, Our on our earnings yields. attractive a properties pipeline almost development lease growth XXXX. in and X,XXX in XXXX both development earnings new increasingly also deliver with And this

of we’d underwriting that new expect opportunities projects new own we as a so sites additional development other on of number both and well underway XXXX. couple early late as land this or a year have or we're opportunities We currently to get existing see

had acquisition the typical years our on of earnings we've in during this made we over performing the a past in the acquisitions quarter, successful We appealing submarket a with is last that of under in short the described been the fourth the closed XXXX. the acquisition release As times the namely and property with Nashville few Downtown. transaction for End that highly a of couple previously very different contract, near new The West seller close in window. actually was very and motivated closing seller were case, week a in

and and integration We have platforms steps remain we several pricing the very underway full activities are opportunities and other under robust. the be still operating and MAA expect review, of and Final does surrounding to competition but later post in consolidated accelerate the platform portfolio progress systems year. opportunity the on on our post same significant making team the XXXX. We're redevelopment legacy to this activity this opportunities operating and within on plans fully

that drive post-merger. the the with continue about proposition we've value variables very We the to feel long-term discussed each good previously associated of

Post Before associated with merger.

Before I and that the turning efforts Tom, want all completed Post. our integration in thank today work for over of associates call been and hard to the to has surrounding their merging MAA

value strengthening great executing accomplished to MAA the have us been on by of it forward commitment value of over team made. our front Tom. to The You’ve We opportunities has way and long-term That’s I’ll The turn XXXX. progress platform offered the our the proposition build comments, strength. in by for has strategy, in our prepared platform those during lot continues generating a to the of in all growing MAA served look is compelling. and I

Tom Grimes

everyone. and Thank you, Eric, good morning,

just and X.X% for Revenues growth. in with were increased Expenses NOI the over the average prior year and came performance X.X% X.X% effective operating quarter Our year daily X.X%. by XX.X% expected. rent over prior occupancy the increased fourth as

improving the Post improvement Post flat of rate portfolio and growth the to the slightly XX.X% slight the portfolio both quarter drivers result occupancy growth in legacy effective prior legacy The Expenses Looking the revenue at negative revenue The daily to be in effective continue revenue revenues, average portfolios. portfolio. XX.X% with fourth year, growth. spot a by revenue and year-over-year was the with overall portfolio growth the bright for legacy daily rent steadily of had in quarter X.X%. from MAA a occupancy as quarter generated to X.X% compared average fourth third of rent occupancy growth

real as While shown for it were takes have time management show revenue taxes have with room quarter. practices insurance. casualty post-portfolio XXXX. repair the expect and management up our and programs immediate still for to personnel, our improvements portfolio in to by improvements operating on That continued X.X%, results. driven were aggressively and revenues, pricing We overall expense manage for just run to up in and the was which our and the as X.X% more expenses up same-store Including expenses estate more in well maintenance programs the progress property

January Our place in our current of XX will operating than year. the are blended the is higher improvement than lease-over-lease the continue. blended benefit in in by portfolio. daily January points in basis XX platform. January better same-store the which which This consolidated of X%, post now is rate, is at prior driven and run Overall show rates last disciplines the savings are occupancy XX.X%, points results is the fully basis average same-store Overall, XX-basis up year-over-year legacy rents January year. points

MAA January continue in up in portfolio the lag basis rents from to up rents rents were where legacy Encouragingly blended blended legacy X.X%. rents -- however, blended a the the and Within of up of X.X% post within January points January were were the the performance prior blended year. portfolio, up portfolio, in XXX the legacy

improvements our While ground on we are the supply higher the legacy operating to allowing in post practices year-over-year trends. us at the facing are pressures post sub-markets, pricing locations in gain

leases, Dallas In XX,XXX XXXX has grow remained X,XXX year. in markets for both in lease XXXX XXXX seen and XXXX remain improving lowest robust at fourth were fourth was for the Austin Austin, March deliveries down way. XXXX. solid XXXX growth the – peaked up X.X% a marked in the we first renewal expected capturing to XXXX, quarter pressure. in renewal is XX,XXX deliveries. to X.X% to in completion and likely year the in felt strong quarter in of portfolio. deliveries and ratio encouraged in stay improves remember facing and at the same-store most will the in is markets. in time Job was be the Austin thus job same the to from Dallas half at while to to X% continue this quarter in to job and we jobs in loaded is January deliveries X.X% benefit national declining that back first X.X% to markets. were quarter, the important our the growth. XXXX across growth markets are expect point renewals Dallas of transactions, high average. XXXX to and versus with Looking It fourth expected level. the to are front our X% XXXX in forward, to versus pressure strong over X% job Supply X% X% in Deliveries Permitting the quarter in our first to growth The half in X% far in amount trends expect are the February growth quarter with year. last markets of also our that is of the We're fourth expected and set that XXXX, deliveries quarter. this our our then and another in about each quarter new X.X%

good in many moderated levels a While we're elevated results supply growth seeing – markets. rent good rent growth,

XX a same-store Richmond were demand XX-month for to for to group. and down Fort respectively. portfolio X% dropped Move turnover overall to on remained Worth, residents XX.X%. outs for home the and our outs basis, renting home move the move outs XX% On continue low. were XX% and remain down Raleigh, to down by -- current steady Phoenix buying a stood outs quarter. Renter X% and Move rolling out

by in supply are areas older product seeing excellent locations. it compelling legacy opportunity in that supply, you post newer know XX,XXX more majority have that units product. We puts competitive on opportunities. on There legacy new redevelopment pressure of while these the updating are As the make most the the great product can the inner loop locations locations creates are these the this post

still post below new the have be rents more we raise units. non-redeveloped portfolio. to coming on building getting well XX% than room On a across and $X,XXX the the Through have increase spending is redevelopment product unit. program of rates online. completed that’s the comparable rent we’re X,XXX the a Momentum XXXX, in average, We legacy

legacy unit a robust post have portfolio, units. total to in redevelopment XX,XXX of we the On neighborhood over we stands during to combined For continue completed upgrades. the units. the total redevelopment X,XXX portfolio On now XX,XXX our interior XXXX, basis, MAA pipeline of pipeline portfolio, a Legacy with XX,XXX

As at you our better of it can and tell gone expected performing our Midtown and quarter are has lease-up Charlotte, in from active Leasing Nashville that ahead schedule. in communities fourth stabilized original the release, well. than

schedule Oaks on actively leasing in are which this Post We stabilize quarter. will Houston at Afton

of and Our with on Post schedule. Midtown year different teams. lease-up South two was XXXX remaining are a Lamar significant started End Post West North, track Alcon and II, Denton pipeline River for II, We XXXX of stabilize properties all our and organization. on platforms and operating change completely at Post to

of now integration We the us. the the of bulk work behind is are post-portfolio pleased

platform more XXXX starting a are operating and aligned cohesive We and with much team.

and creation capture revenue opportunities are full as sides We integration Al? on of expense in both the XXXX. to forward value activities the looking finalize equation to we continuing

Al Campbell

quarter the then the per Tom, earnings per Thank quarter. per initial of valuation company's income some was for guidance $X.XX common impact share non-cash on full up additional in a available the was embedded $X.XX the XXXX. embedded our with per related derivative a for post-merger, offset the finally Net as performance, of to line Net balance the valuation on $X.XX and common Fourth of per was $X.XX share integration the for share, $X.XX of earnings of of this excluding per the quarter and shares dividend the a good the per your includes FFO well I'm from the and income sheet year. by includes the share. for year performance morning $X.XX issued $X.XX were for year fourth per quarter the payout diluted share ratio average. and available and activity everyone. income for shareholders you, below FFO share, XXXX. in merger commentary to $X.XX for is shareholders full related for fourth during payout essentially year derivative the AFFO XX% healthy sector calls per was – a full non-cash income which results share for for quarter share which the the for was expectations. common full

for quarter, million during related and in we gains full for million fourth plans capital were book the completing the acquired sold community Total recognized the $XX for quarter. communities During and proceeds $XX two fourth recycling of million to one our gross these dispositions $XX year.

For and eliminating sales combined covered deferred produced tax the any $XXX a with full also planning combined dividend of $XXX for XXXX(b) other two acquired and gains proceeds position gains transactions we year, which total average gross million, for a were million of portfolio. the special requirement year, million which investment $XXX recorded communities million for These five the book tax of communities for a methods, with year. XX% leveraged IRR combined this sold produced an $XXX for were

we development are plan. portfolio. located and Kansas fourth communities on Austin – completed were up lease-up the included in communities Both City, which quarter, two current on in During our expansions now

we the additional of quarter, funded funding development year $XX During development also $XXX bringing million. million to for the costs, total

pipeline remains of cost at be $XX million, estimated year-end. $XXX contains only at to million with year-end funded development three Our the total communities now which

We it's yields communities, to expect these when X.X% average on and stabilized. NOI development completed

Our contains occupancy the lease-up fourth in quarter lease-up XX.X% X,XXX communities, units, acquired including five average end. the portfolio with during for quarter of totaling group the at community now

community second early three expect of and the of year, in final stabilize the during one year. communities the We the quarter next first of the to XXXX, half

fixed credit. sheet quarter balance end million with notes well great maturing fourth $XX of shape leverage $XXX paid in at during year-end off of our as of secured quarter. the debt And remains Our as We as of net million our at maturities unsecured over line At our by coverage EBITDA. defined was averaging hedged five rates just times X.X with of years. X.XX%, interest XX% while was against recurring our end, bond out rising or was debt only quarter our debt well

also of had almost unsecured combined under credit cash $XXX our We million borrowing and facility. capacity

earnings for the providing guidance release, XXXX Finally, supplemental we initial our package. in with are information detailed

providing FFO providing common guidance We’re We're diluted income which for reconciled the is also AFFO AFFO the supplement. share, and in net for in the supplement.

projected X.XX% to operating for same-store year to to X.X% or is X.X% Investor of $X.XX be at primary The to NAREIT. AFFO full includes guidance the to per and based diluted share for per projected X.XX% business presentation was share Day the share which be year final providing income costs be is our common post-merger. share provided X.X% FFO is related $X.XX growth to or key metrics performance per expense share performance also $X $X.XX of to We’re other is to integration were NOI of merger $X.XX projected to to be $X.XX a midpoint. expected on at driver $X.XX $X.XX XXXX, per which XXXX, to growth XXXX number drive $X.XX outlined Net at in and for to projected the per the which the and growth. the X% full revenue recent and midpoint,

include levels through combined with projections year. XX.XX%, strong pricing projected new rental renewals average leases XX.XX% ranging revenue in the range and Our blended continued X.XX% XXXX, occupancy for the full on to

dispositions pressure taxes the supply We between we the the price year over and expect year full with volume range below expenses are expected currently improve significant to several well real of the range begin project deals. level area pressure operating generally including recycling expect lease-up we taxes assets year as to the planning range in $XXX We XXXX to course of to XXXX. the We expect the near $XXX the And given for X.X% expected to million any increase and growth aren’t over growth, estate million several for real the the the and only estate modest of revenue continuing bottom acquisition for to X.X% performance year. years, last in for moderate.

XXXX. our to range. construction in interest consideration debt short-term Fed rising a based well effective end important during on average interest assets on three within projected our of X.X% increasing XXXX share more rate capitalization, net Declining about Also, interest which half rates to the on debt, $X.XX interest our long-term of course value of XX% XX basis rate XXXX, at XXXX as leverage above midpoint, to the three we complete gross Post basis the is rate We over of pipeline, our by projection from another for around about expect our range remaining to of quarter, mark-to-market another prior acquired points increase per this impact is impact our and of to a XXXX. projected with the for the development portion to X% basis represents related points of Nearly, earnings. producing XX portion about year is with our the debt adjustment of the the increase increase an declining produces mergers Colonial which

also assumes our property the integrations calls between complete to incur overhead to combined our that a combined Our $XX.X merger. costs million standalone for recent of million, will we fully our synergies, compared as expenses is $XX G&A totally projected to planned XXXX. the range final million, management $XX to which costs, million million to and Post as to $X company related systems overhead integration guidance $XX.X gross reflecting And

both to accurately related adjustments Although valuation we preferred any non-cash predict. these post-merger, real valuation to and our projections and shares include not expect are the acquired of the continued volatility impractical as the do with adjustments

comments. in that’s that we prepared have the So all way of

you the now call over to for back questions. So, Savannah, we will turn

Operator

line your is Thank Citi. And question open. go can Nick from our Instructions] we first take you. ahead, Please [Operator with Joseph

Nick Joseph

this changed were same-store they’ve and guidance through nets, year, Eric process revenue been do you ultimate cuts and what and the so the and when with went in Thanks. learned the XXXX? from XXXX lessons guidance budget disappointing was

Eric Bolton

Well, levels be knew know, going you up. peaking we pick supply what quarter to as last the they tell we started Nick of did were year up, I picking Tom to, you XXXX, that fourth alluded in would as is that XXXX. in And

surprised took little delays I bit against little in that little and worked a we us a frankly then, time think very the thing the bit bit. as which earlier us aggressive And consequence more peak activity activity this the a that that was the know, year that would thought as a place lease-up more quarter, much the to as pushed of a of and proved into that. delays you leasing. occurred be was of it The period slow fourth concession for

conditions more negatively some on And seasonality pricing of to. those factor so, market particularly the as were the delays impacted consequence a alluded and that I angle of

And about right the to so, we fact that based by year by supply I think that as think out year the QX we're and moderate this highest half. the pointed encouraged are now trends it's get of as clear we're the pretty in time far Tom going we on is evidence XXXX, that there's the into

going from which pricing the really the than supply season more moderate peak did rent we you the delays pressure of that we are be optimistic time to more as that We is delays? for there we're have delivery, terms know but to think summer delays, still the growth moderate and in question year. optimistic to we that becomes are last get more more or going So, we're new you could see still but as

the that are think continues that hold that industries growth assumption country. I an bet pretty the up. though we so, we course assumption, on of in in job think a safe this is to and And predicated And on markets that’s the that that’s all

closed between just on thing a perspective of XXXX platforms. that the XXXX But literally last time fundamentals, to between terms and is think that market differences other this and difference of XXXX important year different operating two appreciate systems XXXX. the transaction. I we and Post essentially dynamics is And know in sort the we that give supply facing the big you is completely and I So, just of had were the year

of the tremendous particularly Post it that that managers year, were amount taking in of it’s relates we we of were on-site of course to was place. also the the first well fact transitions over There half important to months the dealing appreciate I with personnel a the last think on-site over portfolio. it’s, a as essentially transition portfolio, Legacy the three Post saw

to played So, in some certainly the a that XXXX. it, The position. challenges solid as you we activity of hard in a put good number but news start it on if will into for is we’re very it’s XXXX,

Our more -- We’ve teams ever little integration got are to we left are aligned bit in we’ve and work complete, while terms got practices we’ve approach a more of much set. systems than been.

much, that’s know long a where market answer start comfortable as an this question kind certainly much feeling perspective. at look terms in to that's of how I it. more terms we So, answer that's a much how more year, at long are, we we think you secure And but your to of there, kind execution of in position we’re from in a of we but that’s look question, your fundamentals

Nick Joseph

rather No, conservative it. if you've given I further risk you'd from and to year be what you to rent It guess laid mean, November? I assumptions the after delays, feels growth gives anything the year. But the little confidence a out the of last what the start supply increase in like I elevated appreciate off

Eric Bolton

starting of our year a XX Well, that lower. than one combination day plus that strong occupancy slightly of things; out is we in we're a last exposure have is fact our our vacancy couple such position, actually higher notices a move the is which

portfolio. platform revenue legacy the the take of obviously that now to post traction approach getting better we we thing that pricing than fully year. this the we're will if the and other last is, that, time implemented in management comforted were sort Having have so And a important and said by we're practices under you is that position solid the we occupancy across

in – that with that a so, I And and system position. strong that place, and in occupancy mentioned us the puts the staffing stability

the is assuming me about no certainly we let honest think some issues the in in growth delivery get all over There's supply that having delays I'm little some summer things see we'll leasing, play in into -- mean out. when into Nick, We place, terms it job to that, new it take bit But activity it -- of probably elevated of certainly that first is I’d a the much season, better and likely may time busy to reason and think we be. the be have leasing no what having it as will that than is in a there. that There's just -- the can't, be said summer. but bleed little this we're Now, more our there's winter a how saw really I guarantee demand bit as fourth we won't I to talked believe having quarter I side about quarter. the in being in said

into improves this a of over but course lot rent work the of the growth season we this particularly expectation make. here, a of busy into overall So, reasonable that of feel – a half there influences that back good is is factors, year, get to lot year we the assumption that we the think as

Nick Joseph

the all for Thanks color.

Eric Bolton

You bet.

Operator

go Thank Please go Robert Baird is ahead, you. & your Drew line Babin open. And can to Company. W. with we next

Drew Babin

morning. Good

Eric Bolton

Good morning, Drew.

Drew Babin

like at basis Question so. point Are maybe where you just margins in of increased with being in the another post-merger? you NOI them a at guess – portfolio the of what would over midpoint if it points described? bit quite this And property blended looks emergence, margins it’s XXXX property you and than envisioned approximately kind case look better include basis looks the I XX best management calculation, XX expenses on about I XXXX, the same or the like if guidance for looking margins the I'm XXXX, points it

Al Campbell

Let me is start This Al. with that, Drew.

they’re they I ultimately. be no, think that will we are I think not they where think

midpoint. I in XXXX X% of up going we guidance X% of so are think some outlined of taxes, there capture midpoint at the expense and forecast expect our our continued performance, we we have with what for

on that, – the benefit Tom got we continued as more really got We’ve couple So, XX,XXX go, but there take is a as is years. redevelopment from maybe there certainly will about inventory we talked think through units pipeline expenses, more little of to some we it there. but more about, talked of bit revenue

two work take years, really through will to years that. it So, three

that So will a be meaningful impact.

I And more that that other tables, in as I on see. improve are think we more things there markets so, the really put and see revenue we’ll

not going we're where to – more ultimately don’t you as with we're we that’s so will improve those into expect So that at be they move really margins, XXXX.

Drew Babin

vis-à-vis know little the opportunities. I be Okay. then very up your field the What the of opportunities might result the down talk That's four-queue remains come And broader external I sense been that the that new some like? guess, if leverage are guess for a what's helpful. a bit internal taking that lastly growth you the acquisition? like of the around and it environment, interest expectations that trade-off seems make your on rating credit between the benefits from potentially helpful, in pipe. A market acquisition savings tight it’d And should guess conversations you minus on I about question kind state-wide then

Eric Bolton

and last under you review time than more seeing I at We've I can we Al deals in a at talk Well. few transaction point deal – the tell the bit about quite quarter. And the environment point. you environment we got I'll transacting – fourth did about you mean little this this transaction Drew, talk activity know, balance this year. the sheet. a know I'll are

get due of a million of that deals guidance we know it's way us you, tell that million. already. probably you mean to close, that I mean it’ll of on But have diligence. our third can I you it’s have I We know $XXX guarantee $XXX in certainly to contracts about no

we've you So, in question, to you this our the cash buying the between answer a assuming can what this this than bit that carried proceeds, year. more other I'm year activity. we’re between issue generating better flow you last more seen. And we assumptions, know And we know year any your year we know generated going optimistic are is that I yield and seeing to free as little opportunities that disposition generally, into not equity we’re you tell

no the We do in so haven’t see and markets some to been expectation time in equity quite that.

is So, conversation have we we’re to a sheet. move if if than tad our we execute the we up the the and balance just plan acquisition will consequence as then the expect than environment a on that forecast the will that have and we regard, have out, that that, leverage have is volume even to in successful better metrics laid higher about

coverage better ratios are – is than very payout very, the coverage ratio Our average. ratio, strong, sector better

growth got that of is we’ve to now of that that defines without now think worrying execute our we thinking we our about and some a something on amount to in any right we need external right to spot about not – fair work pretty We any rating take notch well good worrying up the and actively right sort now. capital we’re think and flexibility I another notion any additional about like we’re without ratings. current a room have So, pressures

Drew Babin

That’s very helpful. Thanks guys.

Operator

Please can Thank next go Rich ahead. go with you. Anderson to we And Mizuho Securities.

open. is Your line

Rich Anderson

Thanks. Good morning team.

that with I carry if quickly. real just on So, conversation can

flow accretive, then I to cash So, becomes more find dispositions with debt the since going you’re a – would free forward. of acquisition it pipeline and bit funded assume instead going

year $XXX Can a might for acquisitions how you good. is that’s successful? million Can accretive good. accretive or $XXX of acquisitions you of that’s full that quantify So, million not be quantify how

Eric Bolton

bit at up that it don't be know the this sense point will a leased only in if we difficult how particular say little assets I’d you mean… I those will Well, gets

Rich Anderson

Okay.

Eric Bolton

it place difficult are where that. some now more it deals that basis, not finding bit stabilized a are accretive, best the becomes gets but fully to we're our so of quite pull stabilized, a little On right pretty

Rich Anderson

Understood.

then think Tom, And Okay. I said units is the in you in XX,XXX your of mentioned, you deliveries quarter right? markets, that first

Eric Bolton

That's correct.

Rich Anderson

about down, So, units the at of know is you look aggregate of if sort the it's if over it year, to deliveries, of the you is year? I to were – whole XXX,XXX entirety but it were trending

Eric Bolton

Yeah.

about from So, down it’s X% XXX,XXX a XXXX. deliveries,

Rich Anderson

is like that you're a is the or your don't that accounting if units supply kind States, know look about XXX,XXX mind, in? And of XX XXX,XXX. so the in guys Okay. of picture, ballpark the for right if you in about markets newer kind of traffic of United in national the something out I you that XX at markets or third would but

Eric Bolton

Rich. Oh, number, at I'm appropriate. that not that looking sounds overall but the reasonable, sounds

Rich Anderson

– the question world Okay. long a the history? number in guess, siren and been the of Is see been the third that What is, supply higher bigger lower excuse it national the been do the has history Sunbelt terms time, it total broader for The background. where or And of has the a kind in is for is Eric. a of I been picture? Maybe, question question me, this going? what for you the than

Eric Bolton

Southeast historically markets. the think it's been Sunbelt I

the at look percentages been you in If higher. I one you lines about, the of we’re tell would long-term has talking historically

Rich Anderson

Okay.

Eric Bolton

the and of – more sort a six, we've five, been in high different three barrier. of that that ago, think used years the markets overbuilt a years to with of think last some in some two I we're years seven we markets we've to being paradigm the

lot dynamic, paradigm these that of barrier think so, a think the has would that I changed a consequence -- no and of And markets are more there I good argue a I a in way. high as bit, that,

period think just perspective, thus supply, over for worry, supply, I way of from our we've with be performance I is ultimately, looking to capture the long that anywhere. that always in best And can think risk, the dealt happen believe we're of and time, supply a deployed and least price but about equation, the side its side more in balance and that's points, equation, various how due pay of the front demand to we sub through markets and it. the supply respect the of active think we at diversification give demand we I attention

Rich Anderson

Great guys. color. Thanks,

Eric Bolton

Thanks Rich.

Operator

Thank And Capital Markets. KeyBanc can next ahead. you. to Austin we Wurschmidt go Please with go

Your open. line is

Austin Wurschmidt

higher the of could from growth be And concerned Hi. that that expect was the most guidance curious, or just above would bit I little towards could year about that, Good then and this end you're morning. that to a you perspective? about markets negative talk specific any be you're markets if range? a that optimistic revenue

Eric Bolton

three Florida, are but level some ratios The and well. doing jump side those all to out jobs the have growth, on completions of great positive in or and Austin. of Orlando, that, Phoenix, Sure, job supply three line and Jacksonville, pretty

of those lead. to we expect So, sort would those are --

side, most go it's are the sees we concerning – that are I still up the have Austin Austin of supply two are inventory engaged year, you would actually probably the relatively tell slightly and we about. on. the Dallas and on in next bit those it little that higher On supply. goes rate concern ones most will at down X% a but And Dallas

Austin Wurschmidt

growth produce Do negative Dallas expect XXXX? to revenue you or Austin in

Eric Bolton

that possible, now. it's closer flat I but -- be to positive would it is think where been

Austin Wurschmidt

the No, rate expecting new You've just between wide how lease Thanks. that's a rates And spread you're the and new helpful. growth. in and curious year? lease fairly trend maintained throughout renewal then renewal I'm

So, what's expectation kind forward? of moving the

Eric Bolton

would as general Tom can in they from strong add would midpoint. a you a built expect is essentially X% half But into take three And in and some improvement the continue forecasts, on the percentage there's would would that of come continue here, would what pricing portfolio see probably two is the to in there. larger pricing have move guidance and to renewals back of they I we the for guidance some our tell the area talking Tom we range kind for about as our supply the maybe year revenue in to that I the year Post And it's that this in expectations Austin, more be the quarters of opportunity as improvement to quarter the performance X% but and can did color XXXX, year, what that in in two we there. side is and our X.X see would will we in color... as at they our the would pricing wane we're new were say

Tom Grimes

also close demand opportunity we’ve should on that X.X% gives expect up X%, steady if echo range, here, as stay would in as the just and an leases that gap, that season this as you time then I the and widest see absolutely – is will, renewal supply us new -- outlines go backend will we we the we summer into rates seen No, also Al’s Yeah. comments, busier picks to it continue you’ll where well.

Austin Wurschmidt

Fair lease kind enough. close significant But blended new to a you to pricing, leases that expect that you’ve rate assumed gap wouldn’t fair? is of based $X.XX on $X.XX the for

Eric Bolton

is That fair.

Austin Wurschmidt

acquisitions any then on funded question line perspective? anything side. on getting funding the you lastly, just are or the that the assuming one capital, side from Are And debt assuming on Okay. issuance an you’re

Eric Bolton

now, to line a given what’s at our make keep as that the at well. that that so We the deal It’s a activity We’d year Yeah. in we a decision that planned great bond below the the facility, year, as the that have we’ll to and bar – lying we line $X definitely, plan bond we’ll $XXX million in have tells play – right a any on the down. move half definitely have as of on activity then Austin. progresses, time question, we we and time, into billion early short-term, and to like fund probably look credit you at mid-part take we’ll year

down. X% and planned line year south you’re we do I just focus probably that. modeling of bond something the that have we somewhere into on would put probably you perspective, So, in market there, activity would for And in knock I probably the to – maybe take that some XX-year

Austin Wurschmidt

Great. helpful. Thanks, Al. That’s

Operator

Advisors. And Street Wagner we go can ahead. Green with to Conor go Please next

is line open. Your

Conor Wagner

Thank you. morning. Good

Eric Bolton

morning. Good

Conor Wagner

you give for D.C.? on you could markets then, color you’re a seeing us and what this And year? little in solutions those guys have Tom, Houston

Tom Grimes

one with early month two late quarter, quarter, call a were it, let's that months consistently start second loop, a was Houston, third seeing To market free, pretty Sure. inner Houston, that we up free tightened it's strong. offering anything stay we have Suburban, significantly. have to we stabilized lease-up. loop, so of all in are there concessions, assets not Occupancies now, our continue inner don't and we suburban

noticing that pretty – ups exposure a – might that in free reasonable. But of it's and might are board, offer specific proximity some sort lease of match we across plan places and our might depending is equal the and the it fore on We month it.

job to on moving I so, D.C., think growth the I say acceptable And range. would is in

it mostly in just they sort we're what it opportunity, on that. or better hanging a like is execution lot the learn up but but fruit, really expense I a Orlando fundamentals by fine think of good of perform a optimistic D.C. about I may little or a job for And low continued there, team we've opportunity, as we're redevelopment got doing The there programs perform D.C. to think are encouraged expected. than aren’t Phoenix, Jackson

Conor Wagner

Great. you. Thank

Eric Bolton

Thank you.

Operator

go go Please to can next we And with UBS. ahead. Nick Yulico

open. Your is line

Trent Trujillo

This morning. for on here is Good Nick. Hi. Trent Trujillo

XXXX, Dallas heightened are was Dallas So, two largest of in of you expectations in the year, so your operational how if throughout touched supply on appreciated. these two and you’re you could trends possibly in fundamentals markets terms framework looking be on call. Atlanta just early both curious I at see and that market the and both expected looking are to provide would and a at

Eric Bolton

Nick. Sure, Yeah.

four the going like know a quarter. signs at than at Dallas, there, are you the portfolio. rate, Dallas the on most eight overall deliveries areas falls be deliveries off the it let's on encouraging we as in most far first to dramatic some something to But less everything peak whereas year. will As January wrestle in else [Audio was supply We're that weeks. Gap] seeing of of with say,

solid. And suburban spread the Atlanta is of on to Moving Atlanta, a the on And Buckhead we've month running in half of that they Atlanta, doing how most short Corridor that Atlanta Peachtree pretty term But better. of currently are market. are deliveries Peachtree, to a in to a Midtown a and company spread terms being seen the month Road little through in is from to in then North bit that concessions Brookhaven. follows of up more sort brought stuff area, there, Avenue sort supply focused Brookwood are

Trent Trujillo

That's helpful. Okay. very you. Thank

tax quick one looks like it the additional end range. estate question. the gets itself Just by growth low expenses, On pretty of real much

you are OpEx? how thinking So of other about the components

Eric Bolton

components are modest much Pretty other growth. the in all

areas other marketing, significant and we of growth. the expecting personnel near pressure modest We areas, have -- haven't --

only total expense. a So, guidance entire bit midpoint is puts a a combined that’s of of that taxes the pressure. only third – the little the Remember area of X% of really X% the is area, your third little midpoint

Al Campbell

R&M cost, maintenance related expenses expense which cost, maintenance. Austin, personnel And our I plus total all consider to would our maintenance which

they that portfolio, Post now, their to a the higher running – continued to and where XX% XX% and provide about refine than they're to number. is right the there is for improved some On rate we’ll We practices, the the job. continue have tax it to we've run alone good relief doing as we've like year, still XX%. improvement They're by MAA going

Eric Bolton

there's some other those negative line numbers items too. Obviously, on

Al Campbell

make the said way, math to another work. I

Eric Bolton

Exactly.

Trent Trujillo

you Okay. very much appreciate taking for Sure. Thank the I color. the questions.

Operator

can go And John BMO go with to next Markets. ahead. we Kim Capital Please

line is open. Your

John Kim

morning. Good Thanks.

surprise I of effective but that you? some average seasonality, month, sequentially. sequential to unit this due a declined was decline per rent if to $X,XXX Your came is but as realize it per of wondering year-over-year, increased I

Eric Bolton

it you that's math I out fourth think for phenomenon ARU that the down. mean well re-price us. do, I concessions No, real you come I mean as as with I it quarter, just don't with John of in you quick. the certain and then a in know pulls

John Kim

growth? So, clarify average if I’m other revenue rent guidance income or translate the that other that same-store directly X% this wondering you have there change… much for of just any property is that X% year that to items may will pretty just to

Eric Bolton

property roughly We in revenue. would with income grow that line to expect

the to have pricing that revenues. be up should or pricing, it expect drivers the for we’re impact we of primary So, in blended getting the carrying not a XXXX should be material down, the pricing so plus

Al Campbell

Yeah.

around Our right effective be growth number. expected to X% is rent that

John Kim

do they with peaked quarter or line in peak peak? the first supply And think concessions, the they delivery be Okay. in will will you

Eric Bolton

expect. we what would is That

John Kim

it that's to a acquiring markets, like necessarily than your that? you're sounds focused not then last secondary And performance been your on question quarters, stronger Okay. I this thoughts in on in market the couple primary wanted clarify on but of get just market these to your

Eric Bolton

additional tell for on John focused we that are growth. you would markets those I

the every there's deploying a we as We those continue environment that environment, there the But larger been markets and some today. the that smaller South like and would in. is we or capital to what frankly, like some number of markets expand markets has few we Charleston we is it Dallas. to have have But Savannah, that maintain of in in committed continuing wouldn't a quite no, Atlanta and the Carolina to profile as we for are Greenville in like has competitive are them broad found aggressive it of been absolutely bit portfolio

John Kim

the of time some seeing sensitive you're where that is And sellers?

Eric Bolton

No, both it acquired can kind that had Nashville happened that run we and in happen sensitivity into The we But be anywhere. can year two scenario that both to properties frankly associated last anywhere. of with it.

John Kim

Great. Thank you.

Operator

Dennis And we you. Thank McGill go to Associates. can with next Zelmand and go Please ahead.

Your line is open.

Dennis McGill

Thank guys. morning. Good Hi. you,

the that – in Nashville, has XXXX. latest built First acquisition on question but that continuing in the supplemental

that's to if whether you or these maybe that. any start, seeking wanted of you was the just have that but sort year-over-year And of don't just the out additional color came then lifecycle on you’re about brought how know to in I the terms? of I that, you on So, more timing that maybe clarify

Eric Bolton

because sometime we – didn't early the timeframe it. I particular sort and the underwrote we heard think probably process. deal, about not get it came yet. deal with frankly We and scenario stabilized toured year, last really involved not commenced we that's unfolding that to What market, the that that in really XXXX didn't construction it, was it's it of at it of City happened Well, Port part September, that buyer price. July at another good price we was higher again X% a contract felt potential under a went point – it It contract than contract out went we went in this went had of at fell Then under underwrote XX% deal. contract with another the on under happened – was timeframe in than October what with the and roughly more still

December early and And we called by motivated then so, get done done get to fell end what subsequently and that’s it out, November, did. it in us it year they and highly late

Dennis McGill

Okay. that’s I helpful. mean,

overall to relates it as supply. just question, Second

what out being that supply the also at the found. complemented a and being of talk of think delivery of sort pushed numbers I year end the being more this to lot in pipeline slowing you the is is projections the of we've in delay supply national by seen

in whatever it's numbers? that goes. fully get zero-sum get as timing to How chad that's you the call game So, that's numbers, confident supply isn't over time? like or do in you'd arms the call a far it of it not that How your as those piece you do just to around found just it get tends captured

Eric Bolton

level the XXXX in property mean, property neighborhoods this higher and it delivery we fourth our first actually in on. come thinking to I our mean, is in in this we Well, at year have year, the look we the looks online supply peaking see putting all, mean, level. But same putting of first our she forecast in quarter know it's of budgets, quarter at a the together, we in quarter of to can in than manager, was what's studies first of about and I But up we I at is then think what year as actually we've about last both that have lot a a bottom-up likely happening of slippage previously. promise every approach. to looking from at you into forecast supply other that and portfolio of kind market knows access new that pressure, I that we expectations and I property go And else our for a about top-down mean, supply talked course, that some together some things we everyone of dialed I expectations think it we slightly know at build the

there’s high-level, the have always data, proximity of to their within possible construction but under more not can think I you, if what property – so, into no is not I any you promise two or it’s they or a level, And know get property. will make kind project manager the at at a to

Dennis McGill

call and on that to transaction, of or you negatives the How get expectations? you the full initial done just helpful. a would diligence year that positives year due any out And compared now That's was under the that then, belt. underwriting relative time to during post lastly your the pricing at the

Eric Bolton

longer the legacy increasingly this tell of would of derive performance some weaker that But the items in the that merger than it. back you'll presentations, not to cases XXXX associated think proposition we that, and we goal that with would portfolio in execute at in notice you’ll post and horizon have out towards in XXXX. pretty in out you if about a look opportunity our a it. line merger beyond going most value XXXX. did and and is some see pressure XXXX this No even definitive supply evident much value I out was Having those Well, maximizing detail, said of drive expected. we the expected case, that of you go transaction almost question and It's atomized become obviously, prior to every value are XXXX of various with

side balance and on the deal. side, that So, captured the some we the that right, the we only on things agencies immediate we financing that we've by to upgraded value announced when can I point know sheet the got is on rather immediately

the the out was we to it got versus be. bigger we've the opportunity outlook such would that I that some of to, redevelopment proposition we that as captured as opportunity, has side within we thought the it’s you you’ll that XXXX been the the redevelopment of we to than The more the faster And redevelopment look expected things of some grown. were of opportunity better that in than the performance so time those published, we value And efficiencies happened frankly, thing you of on other was where The we announcement merger post sort tell alluded faster alluded to actually go. the going has see of operating merger if assets we at expense Tom rather and the equation. expected, Tom on than as got

to have net-net, And next year intact. four but or some is come of that as than bit a was we three online bigger just a the transaction. thought and we be, we this proposition the year, little we very the early supply So, peaking, years, frankly, would of little from value than has going very thought still consequence think coming mean very, the slower it’s merger about perhaps, it much I this online this about, good feel pressure over

Dennis McGill

cash one year below cash flow but slightly The flow thing you the have been standpoint been or would a below about stream have underwrote, it from where overall would higher…

Eric Bolton

Correct.

Dennis McGill

stand Or today. higher would

Eric Bolton

Correct.

Dennis McGill

it. Okay. guys. Appreciate Thanks

Operator

you. Thank Rob ahead. Please to we can next And go Janney. go with Stevenson

Your open. line is

Rob Stevenson

is, the guess Al, morning, so it would same-store there? recognizing guys. just answered But of Good X% the different how out at expense post savings couple have ways. another that the expense a look – you that the of midpoint, way question to you’re much I be at higher in without

Al Campbell

I but didn’t are I haven’t points me Rob, basis in and range some just points hard it’s the math give performance. that -- to of got -- a some in of question, of we are color basis that more kind get negatives. continue the some to would yeah, would, I a some, do getting I somewhere first of me, let the little XX range but XX items job on probably on good there front

XXXX. real portfolio, estate with performance over up taxes performance, is on XX-year in X% at look X% which just continued year X.X% above with, you If stronger still

And maybe area so, to is should areas some R&M get I insurance we’re -- some continuing one and from and bring synergies in. definitely other

expect a a July is XXXX, net is in We effect in reduction. this in our XXXX -- good we still X. the had renewal in project year for had to reduction increase, an We are we renewal and that renewal but year's the very have expenses

some the XX basis things probably without those I talked to think bring all points maybe basis and So, points together of us things XX higher. we’ve that about X%

Rob Stevenson

Post Okay. savings? on personnel the made does then you that – have guys the that that side includes that at And changes

Al Campbell

Yes.

Rob Stevenson

Okay.

I the property seeing within it Mid-America So, is, the are you that the mean, at level, by headcount saving core guys of to is about properties, upward wages it sort on way portfolio I accurate? pressure Post reducing another at but think guess

Al Campbell

the been have made Mid-America that been both in dollars good and frankly – No. a the spend not – the and the on site better, have it’s No. – they up pretty item mean on I covering portfolio in it about thoughtful portfolios our Post their weakness has how line shape on side. folks

Rob Stevenson

Okay.

increase the store peers load? is are like some of big another X% So, talking not seeing any the – in the of some property property expense really your at about same increases which obviously of component you're in material your wages wages level, level at

Al Campbell

that. in plans have X.X%, we X% and place range includes forecast Our for

Rob Stevenson

Eric, And here, you after how’s nine the then months, board about Okay. Perfect. sort peaking XX. share -- day, repurchases to selling months, is and a know stock you tough of thinking I additional read tomorrow the mean to months, could up is want that now it whatever of call months XX bad around How six about how you you under do XXX sort another possibly thinking does assets. three board push the guys

to of don’t yet, guys weak or alternative discount you any guidance that weaker, dispositions for is to as that a enough You still utilize have for get that? or not in of your stock you plausible but is if the know continues capital

Eric Bolton

obviously of very than And compelling No, the compelling starting level whether new discount Rob. properties that becomes some think itself, know any much a be might capital, we more other about that compelling in be or use alternative acquiring that it’s of other developments. it, sense you to that at value presenting

So, we’re understand the shares very back history. We’ve in aware of bought our the concept. math, certainly

fully program right authorized. active an now have We up

certainly something what’s million close of know it’s continue point business generating but of becomes flow, with you we will around $XXX to so, to free $XXX the you best cash a at And about. a us – now course, proceeds. we that it use And know monitor, something that of million becomes think of

Rob Stevenson

it. Okay. Thanks, guys. I appreciate

Eric Bolton

Rob. Thanks,

Operator

And open. with Jefferies. is go Guinee, Tayo check Okusanya your to Stifel. Guinee with your go your line line we is to Please next We go line ahead, ahead, John Please John All open. next function. Please is can can your mute open. right. go

Tayo Okusanya

Yes. Good morning, gentlemen.

me. questions two Just for

December that do well The comprise XXXX and but versus does last into first the you see to related in by XXXX million still the or guys dropping of? what one over closed merger you Again, year, in properties. expenses XXXX, exactly the a expect is this. year merger focused post in curious so $X understand we're about I on so spend

Al Campbell

That putting Albert. two is is and this systems the Tayo, final together. portions integrating our of platform our systems

with synergies of and about get go had to – our Investor platforms apart did talked aligned the our our what two to we our to our we some the a them and ahead we bit We in Day part processes platforms policies the shape. and our think middle people that jump XXXX in Really operating. on stay I busy of people fully that allowed our and and season during in and as XXXX, we been XXXX practices we’re really get have great gathering. to systems

rolling all will virtually the out middle of it the rolling, done, the we're all So through all platform designing, systems the is stuff combined and the that new platform, that system this causes year. we've that got the be half to finalizing and testing, planning, all related of all

what all first majority to to the in see maybe that that million million $X you, how back in fall but the fall virtually costs of trailing for of the a you will is of related quarters, year. little the so, bit it and $XX that's two And part

Tayo Okusanya

even first any sales that that kind pretty then very kind did Okay. of and the off? And half if spend is we of throughout year,

Al Campbell

telling weighted quarters. Very and third first fourth in and off the half

Tayo Okusanya

had expenses. Okay. was I That's around helpful. Then the second question,

GNE expense, and includes Post million synergies expected with property about million combined Your transaction. roughly to the from $XX $XX projected all in your also XXXX, management in that it is the increase XXXX, but to

yet So, number wondering is up I’m the going of you've synergies, year-over-year? that got still but kind

Al Campbell

Yeah.

we gross kind for our part as of we to title that's supplemental out in that why and capitalized big a data and think our laid development, cost help that. with of I in overhead is the guidance net the a a

the or compare those net we development and is or less large X.X% being at XXXX of that P&L looking XXXX, the you're capitalized portfolio. that when XXXX, – put million two about in line finished bottom and in the together G&A is So, overhead our $X.X to X%, of so growth, overhead part because a for it's guidance and of you number

on want So, But about overhead if out the a you produces it a for the put of point or if for company are X% we we make is reason gross, cash in to which take growth below number line sector that is it's this we the is years. is because focused flow average growth the is the that gross many value. I really that which really in main

million projected the that And million to say standalone, to so, number. a the of for their two XXXX in we savings plan with numbers $XX overhead laid $XX out merger companies off capture

there line gross that does in And does – we've fully that so, established guidance that that. our

focused target And we've out we about for that's XXXX. on, we’ve so and number, the that feel been laid good

Tayo Okusanya

-- So, this. get so let me just I make

the development So, midpoint number gross number the million. of the gross number the is is yeah, $XX gross of gross which is capitalized overhead million, overhead about $XX – about total

Al Campbell

Correct.

Eric Bolton

number was million. XXXX, again But that $XX in

Al Campbell

the no, earnings number. going that no, is statement you’re here No, what see to that net

combined you what is that should G&A XX.XX So, XXXX them. number. tie is net and overhead the XX.XX on modeling your for the and expect midpoint of that just that of on midpoint below

Tayo Okusanya

you. Got

talking about are years XXXX year-over-year synergy? Okay, you versus XXXX of XXXX, were the $XX that’s And X% of increase and inclusive and million both okay.

Al Campbell

XXXX. million, XXXX is is it was -- it. yeah, of fully XXXX in most inclusive XXXX is $XX of inclusive of But

Tayo Okusanya

There’s take not I'll this still offline... but something I’m following

Eric Bolton

Let’s, we’ll why through don’t the and we and Tayo get offline call. after the you, take this with get math. work

Tayo Okusanya

Okay. Thank you.

Eric Bolton

you. Thank

Operator

Thank to ahead. Please next you. go Michael And SunTrust. we go Lewis can with

open. line Your is

Michael Lewis

wanted thanks. about circle the revenue to you the same-store guidance. Great first back all very answered way question to the I

push get range even your said what well in optically they until competing first realize don’t three units year, I bit summer, even back. with you did for looks little the imagine be It quarters you into I and quarter you’ll So, if those supply, but X.X% X.XX. one to supply, and optimistic and a the X.X% would is XQ, about

say how look especially that this and kind the the with curious year? got of I to in range might a guys know just your I’m model comfortable of So, low and of that may you at, you guidance these cut have lot think end later stress people

Eric Bolton

fourth XXXX’s lot is the activity as on slippage weaker consequence expectation of we ultimately what I the of function Well, ultimately expect, I therefore mean, that go took place impacting the effective a that think that. we a pressure lot saw have that units with and that -- of at look a pricing the ahead. of of was into quarter a leasing was the done concession results weak season

quickly sort And time this this us some away pipeline where in on we position able everything us that think falling time up QX, see. year versus were Post we see on just this higher based all year you’ll now you’re of the starting that versus about sort is fully is start and we’ve of with but year and in dialed going a occupancy stronger earlier, XXXX As at we the I a lease portfolio gives the news last having that now that dialed of place at at right the been revenue much management taking this on of last said in us, in a position. to QX not good as position platform in

stronger just Occupancy the of are were in legacy secondly, fundamentals as – in the leading as is work started it’s in going a occupancy. we last weaker position position a better better versus the year we market is out portfolio favor year. I Post as the and much plays so, opposite we think then platform say, just of from a the fundamentals scenario year year of fundamentals the And more have in market including this worse terms the And market kind – our of the as where combination the position to year. we part into got getting

on So, say those this an earlier, all to that when put reason to sort all and factors are. is there demand is that believe equation unlikely no as holds assumption you that I where is up the occur. it predicated side together I But us just said to leads we of

to we consequence, we’re we these demand to that continue continue outlined. we’re optimistic yield So, to to going are So, of the think and we’re anticipating level that that get optimistic these a markets markets are we’ve will as going to where

Michael Lewis

that's besides about there opportunities the reason the you've question see easing to something the changes being portfolio, there like ask renovate? still to And might I units I'll do think by second do in legacy know you? you wondering, CapEx to or it’s those need on fixed that in competitive cycle obviously, out that just had is be I’m there helping units to my make transitory fair revenue. the just if what’s getting the think of of the beyond amount easily Post word supply lines you kind platform left helped significant a what the And negative don't or Is personnel? there's anything you along new too,

Eric Bolton

Yeah.

And Post – there pops in are say fact of understands everybody last about properties, terms of The offensive spending. physical earlier, of curb And management XXXX is So, probably ahead I'll And do year to I’m me some is themselves we're we'll and offensive on we'll And for year the more we'll outs, the running can performance addition last in on would starting with conditions. the what then of basis last. and landscape thirdly, opportunity, nature. is that over were then building the that is portfolio, year, still we're that. have things aren’t this XX give getting properties opportunities versus early opportunity great platform, I that's Eric easy portfolio which optimistic in occupancy double take touched run quick familiar of an the with on opportunity, that spending, of have buck that quick redevelopment dollars right more enormous but submarkets. in increasing a good opportunity year, the page. time despite team The market shape. and competitive, we both on on bank Those the more their Post that we're for there that’s the year. on knows the the points the make sort now the hope. part units we’re nature really same revenue that the opportunity ins in this – that learning dollars that that that that's volume in to sort appeal The in are we’re the

Michael Lewis

Great. Thank you.

Operator

next go Kemple can ahead, And is open. Carol Please Lyons. Hilliard you. line Thank with to we go your

Carol Kemple

it On the pipeline acquisitions good for morning. now. Good right all sounds a year, have like you

do it better be think think end For it’s you out you or it do or spread modeling back front loaded? purposes, to more will end evenly

Eric Bolton

the year. over spread evenly fairly Probably,

but evenly. We in we that a think I of spread portion opportunities have half will fairly as of couple year, the strong I first over pretty the back well, are so think a the

Carol Kemple

Thanks. helpful. That’s Okay.

Eric Bolton

Thank you.

Operator

Thank you. Please And we your open. go can go ahead, next is line Horne Raymond Buck to with James.

Buck Horne

guys, thanks call. brief. try Hey, long be I’ll to

that, those need budget feel like recurring may this do increases for renewals? the wanted a And maintain low still renewal ratios to Just you renewal maintain confidence just those with go year? pushing feel year related your to CapEx turnover increases that guys X% your going to resident through, level up to to through rate your maybe I get this can you and you pushing very are for

Eric Bolton

our think the involved higher to renewal we’re is an get is renovating very there and CapEx opportunity. and are with near decision so, how we that. on the created teams And the our at don’t Generally, in that opportunity those and incrementally the I transaction to obsessive capture product and terms in service feel based that Where time little and they're making we've units value spending. an of No, improve And Buck. there lifestyle generally they residents them. like work with the their rate, serve

well. hold know hold will that seeing And as X.X%, this steady X.X% first sense is the just tougher And you early the to where so, the fine. our X% through we're quarter, quarter it into – that held frankly up fourth

Buck Horne

think how you updates just that a Charlotte in in and couple I just just pressure Okay. plays Tampa to the quick supply year Thanks. But And thinking, of of think all bases. market maybe the the particular? cover terms in do

Eric Bolton

in the Charlotte, is of if and and on focused you end In area will. south it the uptown, downtown sort – mostly

fourth come that X,XXX and first – so quarter. it in by it’s in drops XXX about And quarter to that’ll is units the the

know fall jumping know nine know five, you in sort seeing is significant well to and four Tampa this Tampa, there. from jobs is completions there. of actually linear pretty off in So in we're you then a Tampa to you fashion And

the back So, a that's to of that doesn't potential is side. it norm. that a lot than upside year have upside have channel a the huge of supply, stronger to a company with market Tampa But has – half the

Buck Horne

it. Appreciate call. the for Thanks Wonderful.

Eric Bolton

you, You bet. Thank Bob.

Tom Grimes

Bob. Thanks,

Operator

Nick ahead. we Citi. Joseph Thank go go Please And to you. next can with

open. Your line is

Michael Bilerman

Nick. Bill, Hey, being you last more year was of have you in last recent challenging, that or results. come I'm here was back guidance three expectations. a that And one done back fell the back I the August cut cut the confidence and of when well with big on the issues quarter I you of where that excuses I sort Eric, what and what why dial when than big same-store right, that did months it's lot you things asked of you sort with X, missed about Post-merger systems your third to clearly with having same is happened sort were any Nick. was we're of XXXX, I what in evaluate of Michael I that gives that the here want about was of to in you not that the then twice quarter And different below and gave announced Eric, and type XX think months, remember you of hearing question talking a what recurring merger, now, made about XX been sort just tested. you're XXXX before still the you most about same this Colonial, I consistent you've deal and

blaming little you blame helped of that supplies earlier year you of but that the sort was when supply would bit a You I cut Post, with have twice. in assume delayed you're delayed,

bit So, I'm this together apology a just of trying to of more put it the effectively performance. an and little all hear

Eric Bolton

leasing that be that in projects of know April, increasingly seeing together mean, that supposed we supply to the I I think far the -- the and up will that conditions get that back insights into we that the for and would XXXX the consequence the had visibility that tell dynamics, so completely a knew we mean set that as wound least you we as on going May that, mean, year expected. expected to on we a on the put I and in at we we outlook XXXX, more mark. the on and would taking, forth, based weaker increasing were deteriorate Mike, information different the you what part we've than leasing detail I And circumstances year. Colonial and scenario, activity was be as more now up place of And that. of timeframe concerned, taking getting of lease particular by think the be as I so can back is a half started in I But

a so, faced is in because scenario, get practices of and our that when likely leased as you know sort sooner you’re later. developer has. of get forth to okay financing to kind insight than in that, don’t their good of with visibility aggressive we have have terms know, are to to what perspective on arrangement And know as we – concession what you given we as any have kind so well don’t how a and the And exactly you don’t of developers given on any what they’re pressure you rather perspective up going know get

as so, practices we sub know just the, lot like Dallas in in saw a consequence aggressive. And more concession a a of particularly markets some you get that, of uptown

happening delivery of of leasing half more pressure year the season. As a and and slower back delays the the creating consequence in those

as at what greater that. some is their on revenue know is post of think continue of early late the The But did it everything we – we we it practices, guidance what January managers. feel it’s just it that wound we could not a this post is, we it that, To may and the of transition, very of harder would I a wish we some property of their candid you the other looked be you So, a did. was. up half way, with by saw that little what is. fueled it consequence turned only was you, at XXXX through have just opportunity. to kind situation happened underwrite visibility probably XXXX XXXX, in had you get when And of go but as than big the to would when in how And us with thing weak that way about had and look when know surprised the know, slows, and did weakness we out I was you started I good surprise to kind onsite bit replace little we everything down that a opportunity. looked to I you management and over some leadership of thought. at add occupancy, And XXXX, have we having what

that important mark-to-market $X.XX. gave if there's $X.XX we thing variable on just report this we surprise, out for that I'll it’s point for other so, that $X.XX. is to $X.XX. is that. a remember that, One any really And original the that is though the I'll gave was also to, guidance The preferred was Take XXXX FFO add

FFO for So, guidance original our we beat XXXX.

Michael Bilerman

Right.

Okay. the than Getting number to get you right. is number a to itself, a rather how number

have of So, of came it potentially the which the dropped in XXXX, better NOI, in dropped that too accretion up the And a where little is then, of your on two to X% as XX points that operations, any XX had you second should quarter update acquisitions. more to you credit, XXXX out the quarter, some right. doesn't without started the The and levering at you fell if you was of first the you flat just think arguably operations even accretive held thought was about it you at quality of at October. as in much, basis basis holding XXXX to was line in we late X.XX% if cost below quality not a doing And where strong same-store quarter. nearly quarter think for about in know of it cash the X.XX% third summer, in results X% perspective XXXX sort mid-November some the in and supply points to bit

that's generally meaningful or when apartment peers your a expectations. pretty beat so all divergence original And of met their have

Eric Bolton

later our in markets, is two our And the at of Well, than last markets. what ago, lot lot year, you I solve can some years pressure time other come tell a supply markets we're other a the of markets. supply pressure this of

Dallas, So, dynamics and our Allison worse market and it portfolio got did. particularly for markets our it had the and in the with effect

Tom Grimes

to quarter we got built on We the in perspective, different performance the Let expectations me fourth got miss we revenue. performance, fourth our add get a our didn't too a little coming there platform pricing because thought build strength to down those had, the do thing to to performance XXXX. quarter was we in allow concessions better from right bit, that occupancy way, Mike, in our we and were we for concessions

we so in talked from what compared and X.XX%, at about November. that's And we what about increased we But quarter we we talked guidance fourth to where what forecast our that's from perspective, didn't pricing miss in did, talked NAREIT. outlined our and our with about the we what in built X.XX%,

Michael Bilerman

Right.

fall. Your revenue down guidance was brought would X.XX%, X.XX% midpoint you at you X.XX%, so came in to it had the X% to that X.X% to in

Eric Bolton

on expectation, cannot was that midpoint. range, the said our we never You from performance exactly my

and expectations guidance drove that with our range we a a was and that what in we talked We have and have and range – drove earnings we the line about.

Michael Bilerman

right, thanks. All Okay.

Operator

ahead to have appears go at I’ll we questions it over this time. and it no further you turn back And you. Tim. Thank

Tom Grimes

Savannah. Thanks,

no comments. further We soon. have you joining to call. talk Appreciate the We’ll everybody

Operator

everyone conclude Thank participation. you this today’s And for call. does your

a disconnect may have great You any at time and day.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.