Mid-America Apartment Communities (MAA) 2 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Eric Bolton	Chairman, President & CEO
Tim Argo	SVP & Director, Finance
Albert Campbell	EVP & CFO
Thomas Grimes	EVP & COO
Nicholas Joseph	Citigroup
Trent Trujillo	Scotiabank
John Kim	BMO Capital Markets
Robert Stevenson	Janney Montgomery Scott
Austin Wurschmidt	KeyBanc Capital Markets
Hardik Goel	Zelman & Associates
John Pawlowski	Green Street Advisors
John Guinee	Stifel, Nicolaus & Company
Andrew Babin	Robert W. Baird & Co.
Buck Horne	Raymond James & Associates

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 First Quarter 2019 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded today, May 2, 2019. I will now turn the conference over to Tim Argo, Senior Vice President, Finance for MAA. ahead. go Please

Tim Argo

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

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

presentation financial we call, as will this a non-GAAP as the measures GAAP reconciliations During most and certain of well page differences also call non-GAAP directly measures GAAP our financial between I'll earnings found comparable in measures, Investors supplemental of at comparable discuss and data, website are over the to be available Eric. the now For release turn which www.maac.com. on can financial our of the

Eric Bolton

year. the particularly we've was compounding on levels we QX like combined now basis first Thanks, the XXX the we're to Tim, and that ahead over rent of the effective to strong. course in make be turnover but Strong lease-over-lease steady for growth and quarter's areas new benefit points growth a continue growth and continues and transactions the evident, highest rates positive lease spring The trends expenses. control and remains and We're captured rent the as good maintenance quarters. basis just of and Resident historically of capturing certainly morning. be on low summer year renewal renewal increase cost leasing of a and season, expense that in utility We're is off in of performance start the as entering to impact. to repair continues a past the growing good rent last X the

continue Our asset of continuing innovation record of property and of leverage management the new teams expanding our larger their of the while use scale and benefits to also technology, platform.

lease increasing over encouraging our these current to the same-store our the portfolio, FFO Beyond redevelopment all portfolio, come with contributions couple sub-property to new next of and make will trends and development pipeline, continue years. portfolio our online

Belt Sun high-growth Our markets steady continue demand job growth apartment housing. solid capture to and for

housing continues growth very the our believe relationship. for We other demand that pressures to apartment X Across earning cost of resulting average job housing hover are drive and of percentage outperform cycle, in the our to portfolio, and country. X markets affordable will XX% influence related regional that across income regional monthly trends focus. challenges our population the high and a favor growth to our As country, continue of as rent continue range regions to will we migration a

that no in recap I'll believe enhancements Tom. momentum that With capturing As the coming continued a forward focused report, fully on excited over now retooling the positioned. the associated our operating integrating call to were significantly look We're after our made. be positive a We opportunities recently MAA focus platform, heavy years, over to X with on annual that with and is better stronger published we the turn and to even year.

Thomas Grimes

Eric, Thank everyone. morning, good you, and

quarter this of average in growth daily factor growth, improving per was quarter, for off strong year-on-year started We've momentum the rent performance well. X.X% rent improving unit fourth trends. growth. the operating Our year and for straight occupancy the continued The was

the last X.X%, basis perspective, lease growth last rent our anomaly, year. a steady quarter lease better and was pricing. the in third by growth the our the second over X.X% revenue year, - this marketing XXXX, For was than numbers. quarter, from pleased for course with of points is is quarter this in first X.X%. in number this flat now way, XX.X%. trend daily be which the marketing And Expense Blended This up rents performance of quarter, the Average occupancy doubled prior XXX driver lease positive lease up would another sequentially. We're out over steady effective for was in that compounding strong at were time credit X.X% we've is and of year's momentum quarter, X.X% for the growth. in for the quarter of expenses in Adjusting result with rate. rate XX the points stands fourth year. this basis just steady a Said report, but long-term last led first the remains of blended X.X% up

well X.X% at April. blended up just year. Average the XX.X. which for a our of track average. As occupancy lease-over-lease annual April has the continued month were strong ended posted month for below X%, blended We're in lease-over-lease April is pricing. since growth well daily strong over rate on a rates reminder, The the trends operating ahead favorable of sector X.X%, the XXXX last expense been continued in

which XX-day in all X.X%, for line exposure, a year. vacant and period notices which XX-day units move-out is is represents last with Our

of additional This of in of XX% capital. quarter, and rent, in per front, in redevelopment an achieve a X,XXX is track we completed X unit which on year On generates one XX%. the X,XXX which units the average, spend in $X,XXX return uses On we redevelop best us keeps about first our cash-on-cash units, XXXX. to excess

to the delivery X.X% prior units. Our expected XX,XXX line market is be is in total stands X.X% latest now growth our market neighborhood nationally. of forecast. in units with in XX,XXX redevelopment The pipeline information versus to our Job

will strong, build. rent remains the demand to continue as long As we growth positive expect

have have XXXX operational. pleased in with to XXXX of encouraged and platform fully are to excited growth our momentum transformed teams the work the mirror. in and rearview We're Our rent Al? the

Albert Campbell

Thank you, provide sheet then was the year. I'll and company's commentary for the an of per guidance quarter first per balance share $X.XX guidance in remainder earnings finally, good of $X.XX activity everyone. the for share quarter FFO Tom, some performance, updated our the quarter. morning, our above first for additional

other favorable per Operating trends our cash, our the quarter. positive expense X% $X.XX performance and includes cost the and per with above both share income A the discuss which repair from profitable gain expect by pressure and items same-store per remaining the impact X from recent the cancel three expense while gains favorable per of and the real estate counting $X.XX to performance FFO FFO year. utilities quarter. interest the which of full combined to taxes the occupancy also grow three revenue not the was quarter sale and [indiscernible] included share per will to on a Favorable strong to appeals. Excluding quarter, contributions estate favorable of and in were for adjustment, bond share, parcels a maintenance our And expense some in and Tom, during for share pricing growth the for $X.XX range the four total land three outlined and moment. $X.XX to primarily our of quarters share real during continued deal was in related add quarter was the guidance. our supported midpoint quarter, of still forecast, for quarter. to for continued rental the tax results The during the we cost

a development per was Atlanta quarter, of the youth. as sold regarding for included closing in our post-merger. us of not and gain not the land during sold the also an We acquired located alternative guidance viable parcels the small significant sale, year. in was in which a was parcel share original for Giving $X.XX The certainty the ultimate was

forecast. In related consistent of addition, the our during we market-to-market shares, noncash included to in our about share also preferred $X.XX incurred adjustment was quarter, of the practice which not with expenses per

were significant the pipeline, of progress impact during on swaps quarter. and at new proceeds and of closing fixed very million The public our line for an down with X.XX% the we our $XXX plans the additional the used During XX also million pay full million during several to effective completed a XX-year coming rate, the the of of to cost credit year, remaining continued attractive the provide the to of quarter, financing the in financing with with needs the development majority years. portion issuance $XXX make of year. of We've our rate of including construction unsecured priced X.XX% for bonds years mortgages, $XX for of

million million full year this and of communities fully for additional projected total to as the funding $XXX likely expect complete $XXX part our projects We X also start to year.

combined pipeline view stabilized year-end Now on the range. in we continue NOI expect to the to to X% X.X% be the

Our with ended leverage, of debt neutral. X average forecasted $XXX capacity leverage of increased over or credit fixed hedged we with our rates with remains debt-to-total at balance low under is rising strong. and maturity and cash the against our our XX.X% We years. an had funding million quarter sheet over end, XX% of assets, of At line interest current quarter

the for a per about adjustments previous we as shares. of $X.XX FFO is any to for just Finally, be performance $X.XX $X.XX we the quarter by for FFO revising preferred forecast valuation the to Also, the updated plans share forecast. at now the $X.XX compared our noncash reminder, full share year, reduce share is future for transactions or our our debt now $X.XX are to of of per do to remainder increase projected previous as our the which which expected midpoint, projections per full year not guidance. FFO to guidance financing and first are reflect as well to our year

with challenging maintaining a remainder of per we the earnings. We diluted year. $X.XX leasing previous our ahead leasing also to season these to same-store plan year. share busy do full bit a to announced our comparisons guidance, revisit but we second very over for the a of net have We're We're common us performance, with - be out encouraged the season quarter us, first $X.XX of and important our and still become income projection certainly quarter share strong per more

our prepared in So comments. I've way that's the have we all

to we'll call over So back turn Chris, now questions. you for the

Operator

comes [Operator Nick Instructions]. And first Joseph question Citigroup. with from our

Nicholas Joseph

new of X% to mentioned How when it the NOI development current and acquisitions. you about the year recently Al, does land compare pipeline yields this to starts expected X.X%. the

Albert Campbell

You're was that deal a we a the nick. Is Phoenix comparison that of that prepurchase, what talking that? new about announced,

Nicholas Joseph

start you acquired in to in the you the that a for later be that? Are the That the X% will Orlando. land underwriting - development then and year also X.X%

Albert Campbell

comments. the of right. Right, intend And the was

got as deals underway you ones we later start plan current really we year. the as So to have this the well

All X.X% as be of that those will to well. in pipeline will range range X% of in the obviously

as So below here see that none level point. this at we

Nicholas Joseph

And how All market does right. today? that cap compare Perfect. those rates to in

Eric Bolton

I the to going I are rates would really for assets say, is be X XX we're to looking quality that mean, X Nick, seeing [ph] those cap we're what X.X today. to of develop, XX,

Nicholas Joseph

new other you the strength the I'm in there wondering mentioned tax north just market. change in states, Any track tax the and rents by [indiscernible] you driven Eric, from in sure east the And trends or to any seeing laws? they're moving. population flows change I'm high if where you're

Eric Bolton

let mentioned to that. Tom going I'm

Thomas Grimes

seeing to have shift the the this it don't - explanation north seen cost are rentals, of XX% we're move Sunbelt. third-party back exactly sort Uhaul best does in the of to to we that. it specific certainly mean seeing the is I it move positive. change, Sun up the is that in information Honestly, - and trends tracks it firm best are on I we mean Belt, we're than I've less a strength - and the But

Albert Campbell

I that will Northeast some to Bernstein continue to, begin to you, Nashville continue coming tell of the going would particularly I migrations will. up. shape is Nick, as see out we inflows, to think you if

jobs, Coast, time. technology-based from of think both doing attract some area lot course to continues Austin been I Northeast a particularly the has Raleigh West of

we of we're the necessarily. country. exactly But just comp higher anecdotally, think out of don't we're the with that I come So conversations particularly sales residents, are were seeing moving based of some track growing on people the these cost areas having from and folks evidence information

Eric Bolton

would And expect. Phoenix, Denver, see from see, Austin, you California, we Denver then we in as Phoenix, inflows

Operator

And our Trujillo with next question comes from Scotiabank. Trent

Trent Trujillo

the portfolio? $X.X value a pricing other you in within with of validation billion a And So And for the Belt last the for the what do perhaps, guess a view cap how two, months, rate. you're your in I market? portfolio that suburban as A class roughly you one looks traded respect How Sun of interested high-X seeing transactions like portfolio? to

Eric Bolton

Trent, we're Well, I forward. not really rate growth portfolio do answer, the look to looking rate want growth asset That's for didn't you going to add mean, want to at to what it. we to achieve quality that to achieve organic

So rate. based Routinely, recently maybe look that take region, total in to throughout cap said is product a markets a portfolio are little the our new then pricing from we're Having X.XX bit seeing, certainly, over we're anywhere at looking at. line, typically pricing lease-up the the X.X aggressive. trading on that, that just still stabilized in that

the development sort what in or right, from upside So line five operating high-X, depends call portfolio it probably either with they about a opportunity perspective. in market. of that just saw It frankly, portfolio the CapEx on, of is for

Trent Trujillo

quick And follow-up.

the improvement but be in we growth, is sequential store level, think it I to same even which So accelerating and into sequentially. all fundamental revenue doesn't translating seem that year-over-year growth. great Correctly greater appreciate

maybe the you pressures supply persistent that improved larger what and to this of your some rest you talk for year? considering markets. the bottom imply how confident about line. can then, So improvement How And the And spread some may are that flow persist? if of the can

Eric Bolton

number good we I seeing. remain mean, don't on in trends And over feel next be levels about they getting it levels, where will. a likely pretty a ability Supply the while they of into supply to markets, everything you rent appear that I years. for stability, that show the high to Well, suggest at based continue, the growth we're of we're the to if broadly would point higher, slight any couple are moderation call

As it be continues long growth is. as as as a robust to job

also ability growth way seeing. sets I daily think off rent you effective a ability to for is a trade a occupancy the trend income. function we're bit The if make fees a will last and for ultimately the they're other up overall line or the sustain of that year. occupancy occupancy saw us performing to it variable revenue And we little how daily from

think making what the that comfortable we that's And in be we're we seeing. guidance As our the right for point this comfortable contemplated assumption, with cycle. I'm year, with the at trade-off in I'm to and

and level terms were seeing not because to the other fees seen since with rent were on we in area a some later start growth likely I the The rent fee particularly and area solo start think drive that a therefore, comp year the underperform fees in related bottom performance basis to area in year-over-year general. are next and more is of to And degree, likely fees other trends year-over-year revenue out the year. people we're get termination terrorists in associated the and stapled move terms that occupancy the to of see past. stabilize the directly To line. growth other moving

the So variable result the see. those has fees the impactful. variable against you revenue next to probably worked year the will stabilize fee will variables: rent into more think the and performance the to two a becomes and occupancy year-over-year that growth start growth variable rent if year-over-year going you occupancy, are in We and

Operator

question comes BMO next with Capital our Markets. from Kim And John

John Kim

I year-to-date comps what lease realize that But the deceleration rented you rate the your of of get have at the second year. growth, of implies Have guidance midpoint you April. about like at X% it down through sounds X.X%? the On several would

Albert Campbell

take encouraged about that obviously, is a as it lower down. mean, what way we're through than we're - it. we've us the number talks April, And Yes. to through very what all will about get with John, Tom quite seeing as talking I

part we're as seeing when quarters, face think we the next I two of the months what look is biggest of our majority we vast at few releases. exposure, that's next or the

the push question doing this to leaving seeing [ph] will. be, that as the So not more those while say to of pricing. hold the that? excess about two able at to believe we at then more we the we work we we'll But occupancy certainly and room continue point, to to expect at about were end But think we're and this quarters, We guys and the quarter. second have is are their talked point, we're going - to clarity

John Kim

Okay.

So that's might rather that occupancy, revenue more additional the just concept But of rate. you growth same-store have than that the ... vacancy

Albert Campbell

and season. continue in as we to we words, price, we that's I'm other saying, the hit mean the rent. hold leasing believe pushing can XX, offset strong going occupancy the it'd question busy I X at but we're

Eric Bolton

it's John, Eric.

at we would end put answer pricing We yes. are to more assumptions, lease assumptions for the that your terms the pricing is, likely point the along. If perform think there are our likely over likely to upper which of out pricing trends lease pricing to would not assumption continue in the be above trends to continue, that well us our midpoint of put

John Kim

out you quarter the the what broke just This CapEx. difference can remind between us you And redevelopment two? constitutes

Tim Argo

Yes. I year to really portfolio CapEx more and to as in maintain I that a every you much clarity mean is do information you do, would could it. we the want to there, you continue that revenue as the mean just normal there get typical enhancing we more provide John.

Albert Campbell

I think that's recurring.

Tim Argo

on We've capital spend the many strong variable capital of of returns. units uses have going really Server And - our I'm have. to we and years best capital. redevelopment is now we that's as to difference. talked add talk Tom some that on actually amounts sorry. we've we we the unlimited of a That's for growth and program recurring. it. typical returns Recurring our is our about the that measure But about

we then to have give enhancing buckets. we those of have have redeveloped, three just and you have and recurring we want think clarity I we redevelopment we on

And that think specifically additional so do not we revenue measured, enhancing things time. but add is to is it's capital over to value that

buckets. those So are three

John Kim

redevelopments But unit this same-store kept then pools the in and are the quarter...

Tim Argo

Yes, they term. we do because force are. we when do terms long And approached not we

to So we that's going store the disruptive. I same the if we was best like over feel have one in be extremely to it portfolio. it in where time did time think keep we And situation

out. will We call

done store. but don't doing same the platform the past current we've we think we I are in expect taking not that the

Operator

And our Capital. Austin KeyBanc next question from with comes Wurschmidt

Austin Wurschmidt

a lease on rate would see Is to thus its curious the of think starting contribution redev? kind the maybe pieces system? the think's single the revenue had just a Or Just driving what operating supply far. more you break tell that achieved Can you've you're guys you - you successes that what out far benign you whether year attribute where you've from increased environment. in and success the so so you to

Eric Bolton

Austin. Sure.

a little the certainly shifted think from we've ramp-up in stabilization can a have. macro and a in other me piece operated And more market our push that. on of but If the I at And from tell portfolio. a level, stable, example systems standpoint, the system. the you X let an Then we And post on still puzzle supply. give supply is is of that you and I being improved will and really that.

between the first over of lease basis the XXXX, in in and post portfolio blended the quarter rate lease XXX was points. Mid-America lease blended over rates So portfolio and lease gap

just timeframe. that basis That that's quarter a gap points. has first result coming Now to having over it the closed And of portfolios of XX portfolio. was of both sort first

Austin Wurschmidt

rates? success look markets, blended seeing is fewer you the in some post lease you maybe markets had So those that across are concessions, of Where driving it in supply? when

Eric Bolton

we're new to On we rates, on, was those close it a to I lease rates renewal coming now. X from to stability, first now And bring take mean early X the is thing up where remove it's - new and though, a a a primarily really still both just on to portfolio. the year-over-year lease on little bit XXXX, back it's post renewals. the On basis, rates, going

Austin Wurschmidt

look was you what And you would kind Apprized versus Al, your items for that, attribute the you last of it. in to? drove items at one strip beat onetime that just quarter line out Got internal me. guidance, the when and first what then

Albert Campbell

major two groups, per $X.XX put We it share. really

We're of per our spread expenses, the If you guidance. pretty revenue was out kind you unusual which I strip and to $X.XX that those about items, same-store, operations, would was out performance of even from encouraged both that say. share $X.XX get performance. sides of between

that thought that The related the gain the that from a from primarily was for other we little cost and had And insurance we over on we we that expected, the of we during the cash there. little what $X.XX then was to really that's off bond income favorable that timing interest rate its other quarter other of proceeds the we to better did, income, a the lost. that, books we had had some income casual wrote that than

pieces. were those So the primary

Operator

from question next Rob Stevenson comes with your Janney Scott. And Montgomery

Robert Stevenson

markets below any or that basis? year-to-date a performed Tom, above on expectations notably

Thomas Grimes

challenging, out expectations. coming Nothing below really along, it's honestly. but stands Dallas, we expected on the be to

On the coming Austin's above, we're quietly along. pleased with how

Robert Stevenson

on Any guess, markets that 'XX at growth expect would you new which point? see market, or a in positive I this you to - could lease what

Thomas Grimes

new positive growth? lease Seeing

Robert Stevenson

healthy Yes. bit the option? the lease renewals are new a Obviously, but

Thomas Grimes

I moved tell the in begins [indiscernible] Nashville to that, moderating little the market bit has year, booming think. back And a better supplies potential Nashville look of It I in our expectations, a I to there. mentioned, half as as think. Bernstein that Eric in would you the exceed

Robert Stevenson

in in that? et take cetera. and the of you next phones, terms trade-off years? guys the could the the far in in to want guys spend me. races are and business you an that of the - to rent do like of locations able then automation in make all And couple it units, than people of what's all How the that over the able large I in where Okay. you their to to apartment, are from out spend. sort arms these road the Alexa leasing of to want they for have And days you mean technology of of rather to Where are lastly get put apartment to what's seems have guys being the down from a terms get expenses

Eric Bolton

early portal testing everything heard Smart, ability we mean, smart residential I we're we're and features. at home the really exactly the in services we are you evaluating testing. on to this point, think to good, the Yes. out there. difference, smart results share not were rent, pretty potential on trying the as And And but especially Rob, that have talking testing year are currently Years we'll service point. technical really what would automation hence more and at working in have out that the say. those leasing they a the to economics we're phase find much till make winds on, homes I

Robert Stevenson

Al, on what you spending are this roughly? year that,

Albert Campbell

The probably real you XX-K, our fund, of of estate venture that is part Rob. which majority our saw spending

so some peers discussion be is when part is of spend select, we're view that - your of the the of lot and to - of to a companies winners with all happens. investment it select we and of part are a that really designed forward And coming of designed that

programs that and right drive improving So those next driving and investment in out to programs overhead terms when that G&A bit the budget year's, talked as little our our We're of that's about normal Tom year probably talks normal this testing this and you that's now platform. technology always the roll we portfolio. about, we these a year spending, spend more

Thomas Grimes

merger. bundled some IT of total Rod, those part of in investments we overall the did the And is that as

on $X,XXX mobility And the unit just to are that that got spending through. this maintenance, home those the improvements, the the a plans at embedded test were then and went smart portal unit we most in direct about so. out resident rolling or or we've transition And year. like spend things So is

Operator

& question next from Zelman Associates. Hardik with our comes Goel And

Hardik Goel

ask wanted I've - One two G&A. for got about I of is the things you, to

up But G&A the Genie going would still imply. guidance initial gardens in little particularly range. know discussed quarter at in was we your the So of first still last bit, cadence looking than heavier you is we quarter. with guys line a Are little at

Albert Campbell

a great That's are. We question.

like quarter, our one audit We to put are that we expected us point typically the about we the I'll and conferencing, to that few expenses of one the you some in talk portal we think highest things, that, things done first put years. there's a and for I in rent things quarter of guidance the to conferences. quarter that out and presentations the for about be came first the some we that Is year-end your quarter. in discussed talked of out as have

we So quarter - overhead line full first year, in that. with projection. year had be were we to expected came comfortable in the X% very about So XX% And right of our with

when the put would-- rate guidance what our obviously, should to you for more of in rate, X our thinking think next I mind like to full run XX% your you're run total get of the is quarter, the to year our for year.

Hardik Goel

Got it. Yes, to I saw those, wanted confirm. I just

what guys tough expenses, for that is Is were you expense store went like of outperformed the revenue, of expect expense same even you on I low - talked growth pretty about higher. your the guys not that Or to for you comment rest the year? expenses, given the have you you there tax but on taxes side? estimates, the end I one guys from second your expect you a The at do through seems

Albert Campbell

There are two things.

I that's important within considerer first R&M, was I said to - think cost, there with excuse start maintenance, Al, utilities and really repair R&M cost. utilities is me, quarter I but that this will favorable

that. was see. maintenance from the get got good to to post-merger synergies repair were first favorable glad remaining so quarter. which We're some And We've really

it, lower end normalized, X% expect were in season utilities, they call cost in that to think remainder in the range. first I of those that expected seasonal because the come mild to for And we be we expect mild quarter, the a had we more of we quarter. the then first the structure cost year the from than

we go the normalize will year. as into think I that

current the look the the So at I But But guidance. in everything and first performance you, consider we as for but the going quarter X remaining to taken that quarters you are year, would should year. be tell together, guidance together. more in the a range, we below X% still something that

Operator

Drew our question comes Babin And from of Robert. next

Andrew Babin

an It talk be about fundamentals seem guess recycling. couple do that looking I that just your things that might developers of from on, wanted not to I that, more the anywhere you it looking be are is across I hasn't for Sunbelt yet sounds sell years. like to way for acquisitions, potential update things distressed unfolding to hoping assets? there capital mentioned? are as I to seeing pipeline a you it really And may pertains done How was as

Eric Bolton

Eric. is this Drew,

continues looking to be over X the have for a basis high. years. deals incredibly now last deal on Our we flow We're than quarterly

there's a the lot into that opportunity market. - it continues of to So come

to see to least what of difficult little more to mind we be in our continue that at continues these make at. incredibly opportunities some bit looking a you're that pricing, We believe to aggressive

active. staying we're So

We If on are now environment X in And will And over that little the in. consequence optimistic. But course going given the I And values we're continues of the to lot up stable going staying what I we're be and conversations improving also a come anything performance. attract interested holding of prospect X we appears operating the up NOI quite a environment see to bit is as ' well. The together or hope right that year, this sector think opportunities value we're discipline. forward. of capital.

to exemptions delved into way. are we that got year. - remain this we and we're We've patient, got our So

as $XXX the think think through later it that million got We've funding. funding important about of And we process do identified midpoint, acquisitions. maintain is relates to what it, call do to which know year. we'll this dispositions, you As we development and we've

we of what combination that's a day expect and be will continue to accretive be around, got going NOI out on will but we this easier. trying acquisition the our built our shareholders to return existing yield, that that get the a create of to focus to portfolio. versus we're is really the recycle accretive free ensure of have we existing and what portfolio see the uses to stabilized our certainly in capital think identified. create I'm don't cash sort environment equity We And flow. year, Obviously, of of I dispositions So that in hopeful sources to cash become

some favor to we today's items talked said little So make Having to a our that continues focus start pricing, as compelling we in We more be these go that's year. work technologies, of some continue we other to going to the in bit think operating continue these that, it some perhaps to deals about. to of that into roll challenge.

So deal pricing is high, aggressive. still is

Andrew Babin

me, think just for Remind the non-core that I if quarterly likely those are last markets? just on forget I assets the or some was to exit disposition on potential smaller call? mentioned side. be

Eric Bolton

finalize rate likely we given more outlier, to at have, now. about as asset We're liked taking just be to older as probably likely not where and footprint the the translates after I at some growth when into But to of that. an the consistent show the company in the going continue market trying of mean that that assets are few - not than in. they're to very earlier. we're And think smaller you think a like growth we've We But look much a the asset-by-asset you of We not really portfolio. history had. broadly, go-forward And situations mentioned see markets I rest from. the to with that CapEx trajectory some more NOI that of right look the on basis is the than kind and exit assets we the the you'll of over often

Andrew Babin

executed Al the mortgage by I $XXX during And encumbered another was There moving And million on then secured secured of I previously was that balance just that are that was for guess debt? properties was three on one question curious is down? mortgage does secured directly kind quarter. replace my quarter, the question sheet. year is, unsecured What I loan. And short-term also term there the parts last the very think to whether there?

Albert Campbell

into the in in terms of I back be million, about XX-year late $XXX the market more our last the going XX necessarily million it plans. overall, look I wouldn't we're if what last XX-year, mean you $XXX public oulines think had year, is put said to collapse of - bond But we in if direct. think I had I year. about the financing you kind think year year, We financing

to secured And one long-term in But number adjust the we a for we continue of pushing properties glad it's to we've similar us with We saying, market directly the wouldn't now. very We're the there. maturities did. a everything at think duration our over just our were do perform properties, partners with of We our still a and see right on we we I to are very to We what have just manage you'll in continue further. part plan did the million as seven secured of is too secured so get for It's did XX are this little think here. debt XX% unsecured NOI saw the I'm we I XX-year not an attractive relationship I there. our moved get opportunity debt is rates. done sheet, able also out But our obviously one. What much and balance And $XXX deals combined They glad first increase that. to year. unencumbered, rate of them. two just good.

And to over so that. that types proper do as see of continue both you'll But protect time. within

wide you've market's likely in So may overall bond the some the handle loan, million term about, our potentially. that off be we'll we'll And are of that On late we're about - plan. and is thinking piece do as we us bring year it $X this and year. another of because this for heard maturities plants for now pay year's, future talk was the potentially to deal open, part

Operator

Guinee John with from comes Stifel. question next our And

John Guinee

you also, of building. X on Looks worth million. then any sold office in acre acre Road Few land And for Atlanta? really only one, curiosity acre? Peachtree Popular Is questions. And color in X $X in Atlanta the $X is land million it on like more Avenue

Eric Bolton

Eric. Lenox site the And a this frankly, The I were the than get mean it. but someone that they many for skeptical by tend piece in of to first associated get done road how we they a posted less we incredibly and incredibly the heart most multifamily are were to wasn't it thought this different the But use who many, approach land, done, years is in right guidance. it that acre, of more it it's We our quarter. therefore, in plans Mall. ago. get to worked with has residual happy on. but cautiously different optimistic, Buckhead. is when Peachtree is We difficult. candidly, actually to next it's is This tight, Yes, John, condominium development that be are we

And So big what reading. us. is And a for years. the been in it's into building, it corporate we've just the it your for space same out the The that owned is And of had XX it win part - we building long Avenue Popular we our years. last different X and the for locations IPO. I staff office outgrew had was two

to And together. so new an get just proximity we and we space. capital had building, finally post And and the everyone that rather opportunity it office sold we back use location to apartments. a running in But

Glad it for time gone. and in been long to a be we've So

John Guinee

the unit, about Phase think quickly? question. there budget a second SyncXX we unit. about is the some go then should really XX% looks cost And Okay. up allocation X the X you is but $XXX,XXX Or that Sync XXX,XXX about? it Phase Did cost for like Denver, in things

Eric Bolton

there allocation. the it aspects When - the this that not But... we with negotiated cost that really that seeing. umbers up more gone the much. one That which developer, no, cost unique adjacent you're piece some created was It had had - has was to they was really some transaction

Albert Campbell

project also It's we that view of of lower the a whole. a number units as

of put to together that. them kind about have So you think to

our And plants. when with And our so in line underwrite it, underwrote is we we when it project together. whole expectations and

total, allocation works well. in thing, it but And so it's

John Guinee

a a draft? Is it or podium

Eric Bolton

surface a product. actually park It's

John Guinee

Wow.

For a Okay. unit? $XXX,XXX

Eric Bolton

mean... I Well,

Albert Campbell

- that's the stage second be largest much one the first to of a you $XXX,XXX. only down, - one. under of blend number When is small it is small That's going unit, you're

Eric Bolton

But you for it's also normal - that's Denver. - why Denver

a pretty routine. You Denver, the and per cost like look market at unit that's and

Albert Campbell

high-quality a products. For

Eric Bolton

Yes.

John Guinee

Surface parked up [ph].

Eric Bolton

Yes.

Albert Campbell

Yes.

Operator

Horne comes our And James. Raymond Buck next question from from

Buck Horne

the that drove just parts the gain $X.XX to could. on for if on you change sale. the offsetting noncash timing changes just can just wanted just so elaborate there transaction from guidance - raised the activity. that timing guess was I to the the I that second, the for Al, land $X.XX of drag I go guidance mentioned therapeutic a back I to the - think on you Could of just acquisition and just also, But we you moving guidance? the dispositions there you

Albert Campbell

question. That's good Buck. absolutely, a Yes,

think quarter so first per share. $X.XX I the was outperform

obviously, role just in into And that performance. so we as put performance that

the we plans, into our and to back part did year that what our share. on the us So was about we talked of $X.XX transactions that costs changes some have per

we that take out doing later minute that loan, as details $X.XX, well a financing net as for, talked give our future may talked as and some the another on So $X.XX be I about the care deal year to our that about paid potentially of planning term I'll you about ago, of we're debt as in just earlier.

actually money in our fall our we we the land we apart have were uncertain We closing, it we mean really about, also guidance didn't that per we had included I that would from had earnest talked forfeited. actually forfeiture likely $X.XX had sale and get the that and money we as of about. share in talked about plans could earnest because

that $X.XX in about per in clearly we continue buy the remaining plan, properties is to year. out back year. And may disposition just timing, that's share the of then the as the acquisition those transaction actually adjust and see deals we So we're penny comes part the selecting we

about us So $X.XX. costs

took We first of a out So and $X.XX $X.XX. things. together, $X.XX beat in those that's the quarter

Buck Horne

bit enhancing of looking presence the really at Phoenix And further. added development That's of the little or in like trying just and enhance the the area. you. considering Looks a to the Got activity some helpful. Southwest you're secondly,

thinking along? want scale and I'm there is just the to you're or you if if optimize wondering Phoenix scale market about Over current marketplace you you else the to like there. how your anything do So Las the would consider reentering Vegas the writing and came

Eric Bolton

and promising Phoenix that the would XX, both like lot. tell Denver to years. And I think a XX a it, I outlook continue have this Buck, I Phoenix very over mean, Eric. call you, we next, is

are much the Coast think affordable see I both more some on what markets of you these of than West markets.

trends. growth, And population pop are markets both to continuing think attract migration I large growth.

properties So market the we a obviously, I as in to market, great. have now. we as Denver there. Phoenix like entertainment very a seeing well. see costs. is and we scale at that military right some the They're well pretty I Vegas presence employment a diversified Vegas that as the little doing economy of lot very continue in a That's as as office And think. well X is I are lot comfortable bit don't base mean have up that obviously I Denver. drives much it. story well you're of our Phoenix in - doing of is as that do back market as probably I other different

I think like growth wage get in market that Phoenix. you you or the in to Denver

sure, for market think in see Vegas. So you'll up the in that But particular would. wouldn't that other scale I US X we

Operator

comes Pawlowski Advisors. question our Green Street And WITH John next from

John Pawlowski

THE Tom - just is full or on Al, could 'XX from, redevelopments? for the revenue the you us left year learning left remind what

Albert Campbell

in XX redevelopment it year typically is - basis our this program XX was in any year points is consistent in as last what our So Earnings with to year. on redevelopment?

So I'd points... them probably give XX, basis XX

Eric Bolton

took we it's year, it of... last mean we it is that what But if was, I would similar it not did what be to part out. since

Albert Campbell

think that think over time, what you're say asking, impacted I built-in that's John, is. I that's if that would is we what it

Eric Bolton

we've steady unit... basis, the of been pretty year-over-year same at On number

Albert Campbell

program. Same

Eric Bolton

the year-over-year meaningful overall XX, the permanent basis all. The impact change really But is on is the basis XX at points. not

Albert Campbell

ramp year did in the But this in. program what number last expect the - pretty be that. as and in at last end pre-post-merger. built would higher year, of some this had be We would year. But consistent year this wrapping we've up we up, it it'd Before

John Pawlowski

you in redevelopments any lower years, would do question didn't if is, clear XX... would last few be how much the The

Albert Campbell

to XX basis. recurring That's 'an an ongoing points. kind - on on in basis XX XX. of built

John Pawlowski

ramps that year next kind probably of And a bit? Okay.

Albert Campbell

No.

I mean ramped would our only next I we program - up if year. think ramp I

next of number year now right previous the think the same year. did we do I about last expect and year units to that we

So from the of best part that contribution the program.

pricing have that's and we But other if expect from program year. next development we helpful will the - that continued certainly we Now reduced performance specifically things.

John Pawlowski

Tom, Okay. entangle of to still Houston hoping of heading market versus And I in equation just structural market coming the the what's just some was side as just demand on color tough season. improvement is the basement then, could leasing it. peak give organic of It's you on out the

you do or bullish concerned or meddling in feelings have kind how So in Houston now? of right

Thomas Grimes

range I John. will rate change X. would I I would in at we steady growth growth say, and blended a year, think I change still to we'll see points standpoint, X like it But last basis moderate think completion that jobs and one expect that healthy But was a normal. rents mean, in markets. saw at more to between a to they're steady be XXXX from I XXX blended more Houston 'XX. the stable are don't to Certainly, our still of

John Pawlowski

mid-X% it does range that revenue years? few in in So stay next growth

Thomas Grimes

in So far blended's hung right there.

Operator

it and are turn closing questions back the like I this no that for appear And it the time. speakers ahead does further at there to remarks. would phone to go over any

Eric Bolton

for appreciate of call. weeks. joining everyone, you We'll the thanks, NAREIT Well, few us most in see and a you being at on

So Thank you.

Operator

does program. This today's your participation. conclude Thank you for

any disconnect time. You may at

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.