Mid-America Apartment Communities (MAA) 6 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Andrew Schaeffer	executive
H. Bolton	executive
Brad Hill	executive
Tim Argo	executive
A. Holder	executive
James Feldman	analyst
Eric Wolfe	analyst
Daniel Tricarico	analyst
Brad Heffern	analyst
Austin Wurschmidt	analyst
Michael Goldsmith	analyst
Adam Kramer	analyst
Alexander Goldfarb	analyst
Michael Gorman	analyst
Haendel St. Juste	analyst
Wesley Golladay	analyst
Linda Yu Tsai	analyst
Ann Chan	analyst
Omotayo Okusanya	analyst
John Kim	analyst

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the MAA Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded today, February 6, 2025. The I will now turn the call over to Andrew Schaeffer, Senior Vice President, Treasurer and Director of Capital Markets of MMA for opening comments.

Andrew Schaeffer

Thank you, Ian, and good morning, everyone. Treasurer of Schaeffer, MAA. Markets Andrew is and Capital Director for This Holder; of on Brad Eric Clay participating management Hill, Rob call Argo, Members team are the the this morning Tim and DelPriore. Bolton,

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

measures will During of be this reconciliations financial earnings our call, financial discuss supplemental found we comparable as the measures also the of differences A data. in most GAAP can directly and measures. GAAP release presentation between as non-GAAP financial non-GAAP well certain comparable and

Our For and later also A and some the prepared call of the currently Investors at comments, today. brief available of this be page an our earnings on www.maac.com. supplement will our website website answer comments available on questions. team to prepared recording copy our release available After are audio be management of will

now over will call to Eric. I the turn

H. Bolton

good morning. Thanks, Andrew, and

expectations year for the As course XXXX a in be earnings over evident for this should finished increasingly recovery release, with apartment our of reported cycle in position MAA and the in our calendar is line great leasing year. that

lease-over-lease high of that year, While trends of of are capturing early we some we with record supply are levels encouraged the delivered we performance. working impact the the with are through new over past still pricing recovery

have some look leasing more this tide starting build, obvious late impact a spring forward time overall to the will take turn, on compounding a summer the for it XXXX. to clear we results recovery is when trends and and it portfolio to year productive improving and into season seems While momentum would

minutes few just leadership earnings over starts tell why did outlook Brad, about this I'm want the you to confident cycle. Before our excited MAA's a call I recovery to over for the that and team. It morning confidence emerging turning take and prospects my with the

this disclosed his CEO and an step of program. April team will and I average lot our with as of well, of effective planning plan And a them. and years the Brad our executive X assume Brad December, know Board I'll have in Chairman. leadership we supporting Executive X, have President to execute succession next tenure the our remain company. leadership Brad, on team in CEO. As in confidence I active in and role we

to deep which Brad results for and our on and has his shareholder team strategy, have our strategy delivered approach sector-leading executing of a long-term understanding capital. that

with recently season. challenged Beyond of a pressure in into have while high team, supply our of evidence especially my from confidence there more supply deliveries, the our new been new we get poised moderate markets as to the is the worst is materially this increasing summer XX-year leasing record leadership that

construction. competing start new seen have at X delivery and the development historically after discussed, the pressure from As we actual roughly have of we years leasing

year extraordinary drop Based X and of ago, XXXX calendar then another years year on calendar in our volume started construction calendar XX% and to of from during analysis, XXXX. the in year XXXX XX% dropped starts the new in the start environment or sequentially interest peak rate low

deliveries a year result is in So XXXX. expected into unit in significant and this XXXX this and actual to decline starting

projects. construction continue with rates interest restart currently increase to and in where meaningfully see and we are loss, ability market's challenges new the Given we to in

in manifest years. will continuing starting we for in believe new a delivery drop together, several and sharp supply this Taken conditions these year

well This few long we material resulting the national drop strong costs. have believe market demand positioned conditions, for drive to positioning single-family portfolio apartment coupled population the a a for outpace is over equation uniquely the benefits with continues haul. supply we the high across impact of year in the This for job and will from the that believe our housing side dynamic significant to growth markets will addition across the leasing capture impact in demand this beyond, trends the new our growth the of the to supply growth rent and portfolio on next years. In growth, that and housing

accelerate about enhanced within will And new implemented I'm larger efficiencies our have at Several new new underway, coming driving increase years. various further earnings pipeline initiatives recently over tech aimed over our excited than few time platform. is our and that initiatives we the launch we with and margin next the we finally, projects will in stronger external year, that our operating residents growth for the history. expect more more Furthermore, services company and have our any coupled

the continue to recovery already importantly, this growth. new balance with over several support have and slated strong to And positioned emerging projects sites well cycle up. to new is We other the lined deliver sheet

So confidence combined in sector sheet, in growing enthusiasm the all team, the over more place we our leading in to external of platform operating much years. outlook have my the supported the that a growth experience growth and a in leadership by housing strong our demand for is the in and next drive MAA orientation summary, efficiencies balance strength towards strongest few robust with country, of and our markets proven capabilities the pipeline

thanks trust and my like serve analyst earnings last appreciation to this team. of community role, our company for and As as will to prior to transition shareholders call your the the our my and and the to our extend CEO I'd

capital been markets over MAA. the at truly the to public serve an XX here honor years past It's

to associates higher even the MAA. and and associates strong of serve. value of our we Our at creating assets and for is and culture value time our of all at an focused our MAA stewardship proud I shareholders, M&A shareholder appreciate I'm the is crowded belief hope delivering work hard in and a those operate. we our capital that that on future where communities residents their the for forward benefit support our

Turning it over Brad now. to

Brad Hill

good Thank you, morning, Eric, everyone. and

long-term more Encouragingly, growth for prospects in in this pricing. to As the improving and years, lease expected, with than our pressure moderate and with pricing performance supply improvement the on has focus strong lease momentum traffic years. toward the in new quarter's January fourth in than slowdown previous due quarter, resident during our was Eric's leasing continued predominantly quarter, we've to pricing our previous fourth but the optimism on typical seasonal lease-over-lease new blended occupancy, combined share during decline seen I less from higher the in earnings. weighed rates new seasonal in delivering

conditions detail, As performance meaningful performance Tim are in strong signs portfolio. and will more expected blended have exposure throughout pressure seasonal poised in discuss improved are and the to our in more rates that a improvement support an Occupancy a absorption. compounding existing revenue and all for indicate supply contribute seeing leasing lease encouraging to reduction impact we continued year, favorable on outlook

efforts Additionally, that we various key several technology are impact earnings, our continuing to support significantly invest initiatives will enhanced centralization efficiencies. and future areas will in including that

rollout our off of will to properties WiFi more of property-wide as couple number portfolio, legacy program. we over years a the aggressively begin our bulk the ramp across up transition XXXX, and WiFi next out of we will In roll our

our repositioning increase both priced supply renovation to market plan also from the which of recently. programs, that delivered in benefit new investments the into and interior has higher the We

invested of a of On $X at of average $XXX ending over pipeline the stabilization the in billion. In projects XXXX, we're committed construction, around And record cost an million. approximately X.X%. X,XXX to we growth expected year projects deliver yields maintaining X under a external at front, with to active development X representing units NOI

start X on in XXXX. to to construction expect another We projects X

their As the to initial begins acquisitions opportunistically transaction that capital this continue are open later lease year, up. deploy into market we'll to in

we properties, the reaching XXXX. were brings end XXX is in property unit average, to NOI property in in early occupied stabilize a the X.X% at quarter and lease acquisitions up fourth to stabilization projected of closing the on XX% at X to deliver which closed of fourth yields total early This upon quarter, its and initial market. This XXXX XXXX. in in XXXX our expected XX% occupied During [indiscernible] and was on

age property in XXX-unit fourth XX%. X investment sold with the we XXX-unit the properties combined Virginia, approximately period a quarter, years, XX property and average delivering of an During Richmond, North Carolina Charlotte, of IRR in

of have two properties the expect We additional contract South those under XXXX. close Carolina and to quarter first in in Columbia,

acquisitions our growth will an higher older, our properties out into our profile, strengthening by and that capital after-CapEx higher of on some on with capital basis. redeploying recycling focus a overall earnings We continue of CapEx earnings particularly newer quality

disposition developments plan an million of expect lease-up, X quarter, end At communities execute on balance in to had of the with the of our of year. occupancy $XXX acquisitions fourth X We the and XX.X%. year X the we late in end the

We developments expect stabilization acquisitions to yields and average NOI the the at to of XX% around yield of average X.X%. NOI

in few the on expectations, on our competition slightly our firm intent lease-up by many of of rent pushed markets properties to hold dates our high of stabilization quarter. level the back we Due our and a pricing to X expected

expectations significantly our However, on rents original expectations. stabilized above developments our are continue and to our and forma the lease-up pro exceed yields new NOI

the various offices. show trends improving Our that and our to cycle prospects, regional you recovery for benefit existing our in all our from at portfolio hard and commitment, to over the is well you residents work growth associates providing supply positioned the Thank initiatives, day and earnings corporate associates. to our demand properties fellow every your additional dedication and of with

Officer; Executive to the moment words say of to with Chairman years his been company. the to many few Eric so this our to to is MAA to to Executive dedication turning Chief serving XX recognition take various stakeholders transition want role. of ahead Before instrumental I His Over none. service call ways our has a Tim, Eric a as and XX second over years his in of do to

courage and We many and are to this me, especially and the his the to to his team the discipline to leadership industry MA's executive leading in unmatched and he and vision is. company so his performance. counsel mentorship over leader in for grateful that years wisdom, tremendous His exemplify

our industry, the all thank to and the to you've I'll over turn call Tim. With given for to that, company we Eric, you.

Tim Argo

morning, good and Brad, everyone. Thanks,

less but quarter. lease third fourth higher positions dynamic the at that in came demand of exposure Brad, We deceleration particularly prioritized in achieve new XXXX, than well achieving typically saw for slightly we pricing focus showed on performance, the we we occupancy markets, pricing by portfolio in fourth us improving the of XXXX. the we quarter, and were the moderation lease which striving. see The for new expense noted goals than less the which occupancy weaker seasonal from As the

representing of over on comparable a for pricing a same continued Average strategy, of period basis, net quarter. basis third a XXX was for increase the to was XXX XXXX. the basis in down and in down XX which lease and decline fourth rents. the stayed from billed the X% sequentially as quarter decline collections basis the delinquency lease-over-lease As this the with resulting strong. X.X% on XX.X%, period Renewal in moderation XX basis outperform new and physical lease-over-lease result blended on point The over up a rates growing expectations but lease XXX to to a quarter point third sequential over the lease points a pricing X% same occupancy point third basis a X.X% a favorably represented basis point compared XXXX. quarter was quarter improvement was from just basis which

year quarter up revenue the drove for factors XXXX. X.X% for the resulting these full X.X% the and All same-store down

XXXX, for hold the a Norfolk, Greenville markets and of of from blended Richmond our and true and broader pricing the Virginia Northern are two stood all release to out. portfolio and than supply Atlanta most quarter true properties continuing several continue better larger Tampa markets being our other absolute was up all be Orlando As more markets markets by in most Fredericksburg continue fourth lease standpoint. the level Charleston, mid-tier XXXX, that those the negatively the be into and Austin, that Austin started for to of with as was Also, pricing of of show to Jacksonville toughest recovery. markets. challenge some to relative delivered impacted

earlier, various Brad over initiatives our course And the quarter. mentioned accelerate continued XXXX. programs to fourth and and into expect XXXX We as of redevelopment in the these we repositioning

quicker unit upgrades, this we achieving time. quarter bringing X,XXX total environment, For the fourth of XXXX, rent unit on supply $XXX of additional these interior nonrenovated to increases days when year-to-date the a X,XXX but more non-upgraded lease above XX turn competitive average, completed adjusted units units. our about units, Despite for

expected to an even in increase We XXXX. expect to renovate with XXXX larger in closer units X,XXX

For way two through projects with of that are phase the active most our program, XX%. repricing yields have repositioning we approaching NOI the

additional the with and begin in an have April construction what projects be a complete repricing X will and lease environment. believe June We we underway plan to strengthening between

on live January encouraging XX now with projects we begin are and begin With also for seeing trends are an that wrapped X the expect WiFi We are we aligned property-wide in to XXXX. projects in XXXX. up, additional our outlook XXXX retrofit

New lease the both January occupancy in stable of blended full to and with XX.X%. pricing and fourth as compared quarter improved December

starts for year stable higher at more was increase. exposure X%, daily physical was average XX-day through January time of the end lower as to points January of remainder seasonal the this January pricing demand should keep XX the of Our XX.X% points than allow than quarter occupancy last of basis occupancy basis XX power XXXX. that The and sort

lease As markets, gap was the strong the Brad second pricing largest X.XX% renewals we units challenge, fourth to new The over quarter April With units in in the excess a since improving, remaining as fourth quarter representing the rates average range. absorption compared XXXX. with remains new supply are by with noted, the also absorbed delevered. of though of increases the our excess third encouraged in the consecutive through absorption that achieved lease on quarter quarter lease exceeded

season. busier rates lease performance help the leasing new summer support renewal and Improving continued should strong into spring

in headwind stronger New throughout supply expected a the and XXXX. for improvement be groundwork our the of but markets, laying to support many trends continue an deliveries XXXX, even

peak we passed the comments, to we years pricing X peaking Eric's on the Following so in or in believe late with mid- construction period markets, of XXXX construction. that starts maximum after to have our come pressure most of tends

traffic recovery to prepared portfolio pressure, and and moderating the occupancy come. comments. lease current have That's spring all increasing our The slowly supply and and summer position exposure, excited about us lab

now turn call over to the We'll Clay.

A. Holder

quarter per Thank a reported our the you, Tim, year share for share, our good the everyone. of We fourth morning, line and guidance of $X.XX for quarter in year. with guidance in contributed original was per core $X.XX full and FFO FFO with for the core which line

Our for quarter same-store relatively line were revenue in results the with expectations.

quarter. from strong mentioned, and occupancy during same-store Tim benefited collections the As revenues

other due was to income unfavorable in same-store nonoperating Our personnel the interest property expense expense to Favorable slightly expenses. compared increase offset and performance same-store guidance our costs and expenses.

During the funded the million quarter, $XX years. million we million approximately X to $XXX next our on expected $XXX leaving current of of be current the an development pipeline, X funded to over costs pipeline

also portfolio to during through completion. and continue quality quarter, invested enhance programs We capital to returns repositioning solid of expect produce the our million $XX of redevelopment our which and we the approximately upon

future opportunity Our cash the providing in balance credit to over sheet shape. revolving remains capacity under fund our ended facility, combined in significant $X investments. billion We and great quarter with borrowing

debt-to-EBITDA Our fixed an was an of at maturity Xx. end, at of with quarter debt at approximately rate leverage X.X remains And years XX% low our with outstanding X.X%. average effective net

mentioned. recent rate acquisitions During or an $XXX bonds we over expected proceeds December, NOI pay paper. X% outstanding using the just our greater that provide and yields previously million public given issued our use at on an capital developments of proceeds accretive approaching XX-year of of stabilized Brad to current commercial X% down effective These

to initial is at Finally, or $X.XX the $X.XX Core information earnings at be XXXX our for the we release, projected provided midpoint. to with FFO which is and package. XXXX in supplemental detailed guidance for $X.XX

year to revenue from expect combined and in FFO year-over-year half core in of pricing the results rental rental in year. year. X.X% outlined blended over proposed pricing a of pricing the The drive XXXX for earn-in of prior rental of expectation the same-store growth midpoint X.X% to back performance comments, been improving course momentum over has grow we the the the X.X% negative and the the with As of

pricing rental line to elevated pricing levels will lease to continue that be and blended by historical of in comprised renewal levels. expect new We with impacted pricing be supply

course to elevated these over of levels impact supply the the expect year. improve We the of

the over maintenance and to our income growth same-store to range. the expect grow Same-store grow XX.X% year the just items, the at costs to expense. of the grow to at I X%, to Personnel written XX.X% X.X% year pressure approximately X.X%. be at while from operating marketing repair average for are other expected occupancy effective we of reimbursement costs For expenses and revenue a expect projected and between the at XX.X% some primarily or insurance continued for midpoint X.X% midpoint for year. portfolio, are and midpoint and fee and

projections, and in a revenue at expense same-store a projected leasing X.X% with currently noncommunity midpoint. results community have combined in NOI actively X.X%, XXXX. that growth additional We in an stabilized of These of the decline late

the interest acquired in half Given year about developments, recently projects later carry the contributing lease-up core being slightly the before FFO of $X.XX first our of the to anticipate FFO these of turning velocity interest more and in to and leasing core the carry. completed the as for dilutive pipeline we stabilize, net year year accretive

turn after and a funded growth and in with We which flow. be to in accretive will expect growth both to lease-up million the to of million, slightly to be all FFO external expect million to cash in we approximately remainder a then be growth asset in dilutive This in partially We not core acquisitions, and This development be stabilization. expected financing $XXX investments by XXXX sales, is internal funded dispositions acquisitions and the $XXX by year. and core FFO debt continued developments. to likely external range $XXX to million anticipate million $XXX of through range $XXX yet for XXXX, of stabilized

expenses of management G&A $XXX.X X.X% XXXX a We expenses over be property overhead results. million the at total midpoint, a expenses, project to and increase combination

approximately We XXXX. to refinancing, dilution activities, also we expected $X.XX increase rate XXXX to in the core our refinancing project our expense of the way with year. Combined year. all FFO X.X%, had of to refinance we bonds expect an as to coupled to These is interest for financing maturing in effective are of of we result XXXX, that that support X%. refinance bonds $XXX by in growth to for forecasting compared million will anticipated have This prior November That with comments. prepared and XX%

we back for the questions. any Ian, call to will turn So you now

Operator

[Operator Instructions].

question first line of Fargo. the Feldman from Our comes Jamie Wells with

James Feldman

I point other And was put you hoping for there positive? talk you then little thinking my could exactly actually a a about renewal? the new what outlook year where about talk new for throughout cadence the And the XX. bit that point in of a on blend spreads think turn is you more versus XX year you're maybe

Tim Argo

detail of is guidance. the This give Yes. bit a I'll the guidance, on Tim. pricing little

So a QX range as as where right for bit we get the with pricing on the lowest and get into positive we somewhere out then QX. little lease-over-lease getting obviously lease into down year, to now, point in back we're with a seasonally the basis are expecting slightly trend new X.X% that seasonally negative playing starting we

We where throughout in X.X%, don't renewal we pretty there. the new drives quarters. the stay variance right pricing lease That X.X% its that And tends of much sort steady to in expect movement the that consistent range pretty now. are

James Feldman

Okay.

think see And sorry, you'll new positive months any with or you lease? do quarters

Tim Argo

starting typically, pricing into if January get about what to we you see, get accelerating to you moderate lease as is into July -- you new sort say seasonality of about August. through would as normal and is think I Yes.

on or down and be then So QX into or get back lease QX, we we you late positive negative I early months and trend new would X to as into the late as slightly to rate expect expect X will into QX. have get QX

James Feldman

And that then How you year? guys what does Okay. the on are thinking throughout turnover? trend

Tim Argo

rates where buy reasons a they buy home expect in were people it was compared pretty home and where [ down, in to I The move with interest move Expecting to -- job XXXX. the QX out, home think, year prices last a ] are, where obviously with major change. consistent don't are Those is we that we XX% lot.

so renewal dialing in generally, And consistent our forecast we turnover where we or -- with were XXXX. to in we're and

Operator

Wolfe next with comes line Our Eric Citi. from question the of

Eric Wolfe

half I looks to revenue your when same-store the end, the blended it's just lower the blend. a from that mean which look wanted sort It spread. to the I suggests there's of to back up weighting there. I follow X.X% like probably at on contribution good

of I if half was and curious step that's And just very over think the if like in quarter just expect provide you like quarter for really to of type a like understand the second lift? of then like a X.X% back is the range this to trying if sort be maybe to X.X%? prediction is you so I'm case, seasonally, the be if third you difference this just that first just a seasonally just could a normal Or it's up and will sort half year.

Tim Argo

expect the you Not new and moderate sort half prediction. necessarily about and rates mean for QX. as I we seasonality into look a of QX as to was I get talking normal late lease back

keep during think that of also it's our we expiring bulk lease in time. another to So thing early mind, have about mid-QX obviously, the when really you QX,

of positive that in range back middle But what number of I as leases to of months more start lease mentioned, So down. drives new slightly then the to year the some call the for and matching positive, the up is a of rates get trend we maximum couple the expect with weighting. X.XX% really it,

the it's then weighting between lease new of of and renewals. balance So the obviously expirations combination lease and the the

turnover. a renewals this with expect We they be as weighting year were consistent will heavier

year the driving what's really full number. that's So

Brad Hill

half I'll the XXXX. pressure this get as off mean, really new drop to we and new we Brad. in -- of the the supply additional into was we you informs in supply XXXX, the that one Eric, get as new think that. back, this was I look into we as started item Certainly, year. in at I'll as deliveries supply there back look just add which is that the clearly, a XXXX, supply

we mentioned an still better get today, in we're we the as picture as XXXX. have comments, of will this year. we that are off of to throughout where peak So And in go supply been supply we in continue our elevated level

So as pressure to through starts of supply we we the really pick environment diminishing top season. continues on to will Tim's spring go the year point, through summer of the what layering look start and year. as lease you the demand inform with rates into that up get trajectory the leasing That as to we think the like

Eric Wolfe

sort -- that data, have it. when That's Got I renewals, year I'm also lease trying of if to what or percent X% be renewed of rents look tenants in renewals you environment? sort guess And relative not renewal limit can a renewal X if of where the taking are are of those years market X% to sort prior understand on of market and you sure percentage this your of I'm but flattish this new have of to what rents. rate any tenants increases at you sort

Tim Argo

Well, certainly years the another with XX-month couple in a stay our lower last turnover. little extended the characterize is somewhere average XX%, to way bit is the over that range. has out of perhaps That

then So that on a then in has, and renewal. resident first call they're XX-month and after typically, moving renewal out you moves have average, does a lease on it,

lower to with which too year. even we're check tends turning bit gap governor getting turnover, of that wide, renewal, still So of on on a typically of the a don't little good be of every portfolio see on top renewal a top renewal

a And so to it balance itself little bit. out tends

accelerate renewal to which narrow any should, And to starting new then expect point about lease turn, strengthening to year, help hasn't were in been. the gap gap, doesn't that it it the dynamic, Brad's then than rates supply-demand throughout and rates we wider

renewal that I stability will provide from So the strength some side also. and think

Operator

next the Yulico Our of Nick line with from comes question Scotiabank.

Daniel Tricarico

dissipation concessionary word with Nick. rate your you Can see Tricarico reported if of may comps markets how have your lease you help activity effect And figures? concessions and use on It's the a is your new numbers? Dan be us on the understand having in impacted to compounding your

Tim Argo

answer are of mean, the impact concession. net quote of that, to I mean, Yes. I the rates last part we the of lease-over-lease stuff

considered that's market-wide compared consistent. I say, cash portfolio concessions pretty would down a there. little pretty is level, in concessions in concessions a in a in for broadly, portfolio, to Around say terms for us, were I QX would month So our bit QX most were free at But as typical of markets.

of Austin, into of markets Now the think lot you [indiscernible] a talked you about up. submarkets get tougher then Austin of and lease downtown with of it's about same you think around get some about of couple up and the in Midtown X some about before And I've with spots even into X, can Atlanta That's where more a you lot you think uptown a to Charlotte. X.X of lease-up. the

pressure there. So still

concession pressure slightly perhaps markets but overall declining. to talked we've is about, steady the the of Some

Daniel Tricarico

as to declining a completions a the sense and you percent like years And How XXXX. maybe how is do guess, a that guess, supply stock that that Great. how year-over-year on, of compares 'XX you maybe follow-up, a then, much -- I track guys I competitive basis is. have on in to much 'XX. as And prior a

Tim Argo

inventory, it down COVID. and at of lowest Yes. well down at mean 'XX as X.X% for start out think to the from I closer XX% out we are down. XX% I last it's look But the on it's supply starts terms you units this were during Eric XX% XXXX, delivered market to think is we It's even years, hit far you which several absolute XX% into then been was that probably look pretty QX to XXXX starts being mean, And well. as getting 'XX. you if our point. is the to for -- of starts below of XXXX. in in just where

window pretty think long where we to it supply be moderating. So speaks will a

Daniel Tricarico

a But stock year? of like than completions on as a like 'XX, that a percent is lower like normal in

Tim Argo

probably Yes. inventory markets, of X.X% our say would about I is average. in

last even the below expect the X.X%. about think below years. above or is you XXXX I and of that few is think We've XX% that, that. loss If further been But XXXX I certainly

Operator

line question next Capital of the RBC from Markets. Our comes Heffern with Brad

Brad Heffern

few of normal. being the than about year a talked You've better the times start

I obviously the Those think in basis. prepared on blends normal January improving in you a comps. very said by more remarks are that are sequential influenced than

than if market seeing So inflection, rent I'm a better rising. curious real you're occupancy trend fundamental like level market just being normal

You kind little a about getting concessions talked be bit of may better.

of real to Just comps sort like now how versus abnormality just out that of fundamental of a figure the change. where much trying and leasing is are right spreads

Tim Argo

year would call sort from so. to just from combination comps, of we're Well, a of looking those. or less January supply, QX, acceleration but sequential I January, trends was back last about the X, then to XXXX. more all lessening and XXXX, -- in will, both not the when mean, you was to if part back it's back XXXX, we think, compared probably periods, normal Certainly, the think playing but December of the and to more and seeing that, what a is is playing a QX which than to is looking of QX easier going that. part to we deceleration the typical I QX

is And full pricing better is so the than lease pretty which much atypical. QX, new where January

lower March bit February, a more. usually then accelerate expect we see little We and QX, than even would to

showing we like are recovery. So real think, good some, the strength in in a feel position to I I it's where

piece than outlook, typical improving that just acceleration. probably think overall to is tied higher So the I an

Brad Heffern

less have whether a talk on you can in either deportations immigration? immigration then just impact could And the or changes significant portfolio through think Okay. you through through policy

Brad Hill

from from we're we really exposed This in is the same-store nothing mean that lot perspective, that there's impact a would type we indicate immigration of I the a change Brad. see immigration coming say the any out of see don't track we policies. whole would there. issues to that I overly that

matter So no large big degree don't we perspective see that. our at, metric that same-store in labor we're of terms a in again, looking to being from portfolio, perspective, exposed don't which impact resident from a a to see we a we're that

on associated be impact there ability immigration of with where the the area Now said the area, perhaps really would could the to we be associated up with could that impact new -- in construction. an ramp new clearly, having that market some the some development that, in lot on And have a that. think impact would where labor I labor of side see

that obviously, supply of to continue existing that our developments a benefit we're our our would desire slows the to down to about. But $X new existing be at size longer anything that term would our hold portfolio. overall us, given the For impact billion portfolio, level talking

how see the to moment. at something we're at out, material it's don't and this it that we'll and monitor point, to on But see not plays that impact horizon but have continue the

Operator

Our comes Spector of next line question of Jeff with from America. Bank the

Unknown Analyst

any thinking question, to X-year When was of view, in level, about your on even I I Just between B third, to long-term similar does B+ that. a this think you high demographics. a ask portfolio your your going split positioning suburban, and follow-up change from positioning. but standpoint, third portfolio X pulling just a maybe urban and a guess then

Brad Hill

This of the some is definitely our here, highest lower dividends region I the is one generally I can leads points That you to our term to think characteristics one both mean the Brad, demand volatility of Tim, portfolio so. in earnings orient too, of the toward add country. portfolio of and don't performance. long but

capital to we're in mid-tier and terms in us right think we the so located, markets where the focus continues between for of be that mix located and also we're markets larger markets. And allocating

affordable a than kind point to that of there. also tends are So out other that price more portfolios

over think skewing to other. I rental think market. the think ultimately, And us I want time, of appealing to what at broadest of that return we you do. really long one And that's the speaks to period of versus I versus to the look -- our spectrum the a segment the if end portfolio

I a terms our how And that we're in allocating change in or target. portfolio of so material capital strategy other of don't see terms characteristics those we

Unknown Analyst

is a talk more little what I disclose then development for this, bit can today dispositions Great. if on requirement the cap I between more and looking apologize the And missed acquisitions, you you're and rates maybe acquisitions. what between between but

Brad Hill

Jeff, it's again. Brad Yes.

cap marketing tell Charlotte two you dispositions in those have during a low the the call one quarter, had And process. were, sold, So property on that sold that Xs. those we fourth I'll the rates in that we the it, did we on fire

a by that. bit were proceeds impacted So

call will the we're we're yields I with we're in close but -- reaching so needs those so recycling in as some we're basis, there's associated tell that they you stabilization, X% generally properties to assets CapEx acquisitions, period them. those my selling that terms upon then achieving. then And in And of. are are So higher generally of what mentioned have I lease-up, capital comments, that lease-up into out redeploying capital,

are are Now we're achieve market the finance. those because able are yields we for to in harder properties on to lease-up focusing that that

Generally, XX% costs current So to to pricing. below we're able better we're those. on XX% get replacement

able rate data 'XX, that we're not good XXX, projects that that return points. in, We cap to those those. we yield. closing lot rates fourth ended in track. -- market X cap it There's X in X our XX a up we on only So were get invested was quarter track in a around in The of the the NOI call developments, the pretty

So range feel focus XXX us a continue And for rates. to to development. good in that cap capital to to we it's basis a current X% place that's on market X.X% spread our that point

Operator

line Our KeyBanc Markets. the next Wurschmidt Austin comes from with Capital question of

Austin Wurschmidt

Great. Thanks, and good morning, everybody.

year. see you when to that and kind that expectation fair pricing a half deliveries you first So half of Is expectations lease-over-lease absorption the continue just thinking pricing to peak back question it started of back concession this in the will comps Is could more year-over-year to the year half the it? in even You better acceleration abate blended that quickly, right in could to pricing way spread the kind think effective the which net begin back growth lead to prior about that that growth. easier earlier do to and of back the rent of kind in of assume face see about the through pressure going to year? of versus this and will rate

Tim Argo

Tim, talking XXXX, back to you we get part as are This is of the about primarily?

Austin Wurschmidt

Yes.

Tim Argo

did XXXX. think about, we the talked mean Yes. call I Because supply want Yes. as into seasonality as moderating see, late we could to we've to you remainder see XXXX continue and will speak that on late of of supply We well of peak the demand that 'XX. side pressure into get the kind you less the got through pressure it, XXXX. I definitely

component deceleration yes, comp year. we with saw I So seasonal I would less easier an where is there's that this -- we're this think expect that talking about comes that.

of that could XXXX well. see we back think as the definitely part in I

Austin Wurschmidt

on this the guess, based year-over-year that back X.X% point did fact positive the a the growth a to rent positive expect on and year-over-year And growth effective assumes negative I year. you you do half basis net effective that net in XXXX, guidance of turn when XX basis?

A. Holder

say by part and I'll probably and the it in QX, then into on beyond. will probably towards mid-QX Yes. be the it'll QX middle of year

Austin Wurschmidt

That's helpful. And then one just for last me.

two for seeing out most the If secondary XXXX? blended larger improvement smaller your me. buckets. that's year to between this you where how and your those rate you're growth broke do versus Just up? stack the between markets Relative markets, those curious all And

Tim Argo

it, gap certainly mid-tier, I but to last narrowed little markets. a to bit. mean pricing I in the for it it couple a still want narrow narrow, those supply have There's years start the I generally markets in lower of happening would probably XX it, it you has secondary how particularly couple outperformed last quarters. have call But we difference, call of that seen say bit. with basis we've points, seen the seen a

Operator

Our Goldsmith UBS. next Michael line the question from with of comes

Michael Goldsmith

question is other of pricing on return The power.

the occupancy not necessarily Your but position. your in levels elevated, everyone markets in are same are

growth year contingent see that. pricing support in returning you in competing improve slowdown does And this supplier that on to do to So the occupancy power properties? you're expecting

Tim Argo

into a bit. the little plays certainly, occupancy level market Well, it

You're start your doing. at looking is occupancy it year exposure, are at other right much we out pretty than But mercy spring, XX spot you this really with to a of looks in we can basis the can there. next what pricing. the current occupancy to was and a further, to that that we're on when immediate better last confident few is the now, which XX and which look at comps better to certainly, push over somewhat good we're where points months, We're particularly into in time get position where

the us range, year, But steady we start now get want in to price desire somewhere be spot supply at into you is don't given where about and we XX% better spring gives that combine with occupancy and are this summer. to then XX%, where will a about can where to we that and good push We which confidence in compared the on X% that's exposure pretty right we declining last with right as be range it. really to stay

Michael Goldsmith

as from in and just And this trend new as through they'll a it. rents the to Got you going follow-up, think quarter. about positive today year, how down lease X% third you're

that year? of maybe to does of does new that the start like what rents And historical So the compare from how growth the lease look year?

Tim Argo

new lease negative X.X%. were January Our rates

as accelerate we talk through we're kind pretty that's every about of that sort where normal July. to We seasonality. And of starting. So see we've consistently about year that seen

mentioned, X.X% get slightly in somewhere range. positive the through we So X%, getting as we're July,

but typical So on that acceleration you works. of math can with kind typically seasonality kind the the we're of do that's the how assuming,

Michael Goldsmith

does How the historical that like historically or year curve? to a compare the like historical

Tim Argo

like on current and combined historical a look supply it's spring Certainly, into It's shape declining would -- summer a so bit you curve, steeper based normal. get historical the little the with of as seasonality, pressure. the

Operator

next from line Kramer comes Morgan with question of Our the Adam Stanley.

Adam Kramer

formula macro I here? of and even just Eric embedded, to assumptions wanted Great. the that kind and you've the job going forward. of best assumptions higher growth growth in Congrats, maybe about all wage kind guess, kind in of formally either the I guide level ask

Tim Argo

I saw from would standpoint, XXXX. in with a say, consistent macroeconomic what pretty we

that, with low then to combined buy little expect consistent in to call margins. various markets jobs our saw expecting, migration to these And that in growth, We national the low what some be what with the it, all above XXX,XXX terms with being new XX, we pretty a reasons. higher 'XX, move-outs would of bit consistent gross continued the pretty household in stay home in certainly see which be turnover, would you've seen. and the continue to we of formation, see markets factors So continue we a level that and we're population for other at consistent

with So with a macroeconomic, better consistent last year. dynamic. but pretty supply

Adam Kramer

the number Great. new January you answer, just giving lease you mind mentioned number helpful. and do And That's really in just question for of renewal but well? the blended January or prior kind I as think the

Tim Argo

Yes.

was X.X% negative blend negative renewal So X.X% January new lease was and X.X%.

Operator

Sandler. Piper Our the comes from next with Alexander of Goldfarb line question

Alexander Goldfarb

Language], the as buck that And I Eric, say, [Foreign and Brad, York with know now stops you. in New you

questions. griping your desk. the all So to now comes all Two complaining and the complaining

First, I guys How can not rates, everyone debt costs you , XX.X -- buyer. ] people because be Sector's that. are look think think, [ to cap Jeff question. an do above mentioned all-cash as at you long certainly you

periods Or you've how long leverage? of are seen it's So that leverage? And with sense when wait we people what for people longer? -- that historically what typical negative is do is -- think do your you tolerating you are to we think and negative willing have what

Brad Hill

Yes. is Brad. this I mean

been temporary. periods have one this leverage of occurred. longest historically, the negative of say been negative I leverage periods of I'd has probably think that has

and two, so we're And I are couple then their are One is interest down buying seeing what them like they And they position. what comfortable things. buyers can underwriting bit, that a NEG get pretty assumption of an looks beyond. negative which some. of their the more I certainly 'XX out rates a And helps helps think leverage and aggressive that with quickly a recovery leverage of grow in think how

we're your in underwriting. the think the So on seeing two be how are things really outlook to it market what certainly right you're on now. and depends those aggressive going that is But I

Alexander Goldfarb

much guys or other like was service services, the of how industry of whether WiFi has math you your or developments, is other much cell meaning income, waste the how underwrite or rent, years or acquisitions projects, as then but from coming pure -- And they're ago meaning evolved.

So curious, rent? than yield I'm from comes sort much how your other things now just of of

Brad Hill

WiFi of perspective -- mean, piece, I would be which out certainly, we be the we're rolling have major a areas the gotten trash bigger that across our a It's think portfolio, some will that we where way not nature. those we've that piece things much. probably to the larger one I It's on. But residents residents, a we -- we're properties not component it's in just efforts that components one from items from now is doing and focusing cable that of that from of supporting generally, as and a are resident that well bulk are that self-touring perspective we our Wi-Fi has whether fees our But nature. adding the really we're our positive of have. value have demand as the some certainly, and things those or what on do we're experience certainly locations

Operator

Our next from question comes the of line Wedbush. with Richard Anderson

Unknown Analyst

honor luck best point hook. going April follow But not you I'm you. to would good and be get ever. your ask you am a let because going an Eric, I really, question joke, it if career this Fools this the off to is the to And really a one But to

active, remain a to Or wondering, be is going here. going Or I of know But switch I'm just And As do said Executive will sort going phase-in -- to X, things great, like when which before look think Is involved. like like play there Chairman, title how that dynamic difficulty just heard be and are how over? disengaging. is just out? say the as we've I go I'm you everybody from a you're fingerprints to for think, active, to have you remain is all day his people will process. sometimes passes? Brad time dimmer you on that

H. Bolton

like definitely concept. that's intent the would about the your analogy, switches. lean I And I here. ever Rich, switch Well, towards

just got coming on opportunities. will to that earlier, influence that Brad continue pulling for influence said going him. and Brad me with challenges And maybe think bit it's up Brad and I've to and tremendous intent them whether I team out to the to As help a I've of here of But think playing has my confidence are back that me the and team things he to the about is rest grow. function have as terms or in available performance the of the costs tremendous and diminish. I little And how think be in actively a

helpful is in over certainly it of do remain certainly on And is Board that's been are for I've I've to that done I for I the XX years but And partly sure organizations seen reporting remain things and be various that good successfully finger that And for it intention be as involvement time. sort have on can a in regard other so as to pulse the here, I to will the well. diminish the an all investment -- my I've years, the in going support, can't clearly But tied worth I a in our to better come. I active of here tied got plan up plan. can at the making and and I worth level future. more think to in -- company. it continue everything to net my have

Unknown Analyst

it growth Awesome. out, it's office extraordinary quick when percent by My in was. is moving when Good often guess second I question like, snapbacks, back followed type we so seeing extraordinary real we've and rents were people play to the for in luck. the XX-plus on XXXX, seen conditions example,

So had the supply we've Sunbelt. extraordinary in

the because curious really you where in just there You're is a possibility XXXX XXXX? if chance of took talking a it. of in a excited like that growth preceded How outsized that's that about the significantly are rise. the of starting improvement as I'm path your And progresses. events just place nature for year

H. Bolton

long I a the high extent and supply the definitely and been a in you coming I it's the off the because to define have around mean I severity unprecedented. recovery. our And mean, both of say, markets. I this tends XX-year possibility, we're time you as Rich, of think is of level a cycle

our appeal seen the there, it's from are things. NOI the it's I up And in appeal by appeal haven't still of drive fact the all certainly fact markets, been and encouraging I to years, the seeks portfolio. this that that appeal just that our actually level during of of where what's it supply means, our the growing. demand is of a this so And think those drive held and that since well we've collapse factors scheme moderated any were didn't We but public of about overall grand company. and think our are we the pretty to product, darn COVID And

I think have hope to the new incoming negative. ultimately than on the more least likely At I economy the administration certainly positive a that. is

be is the level So I'm to of incredibly off very I fall know continue believe what going dramatic in great demand going the dynamics to supply into against of markets. to what about coming side backdrop a be we is

does set positive on interesting into to this supply that of have -- and that demand 'XX is up dynamics a we 'XX very into so think performance. year And going late set hugely impact 'XX our going

Operator

of the from comes question with line Sakwa next ISI. Our Steve Evercore

Unknown Analyst

Most asked. of questions been my have

just of So to bonds. wanted just the one I Clay maybe refinancing ask on the

today? think your spreads are you XX-year threw do rate realize X% I a I'm guess curious, the where volatile. I think is out you I really pretty

So over where to be it XX-year an the way with peg think $XX might little for you do trying a today XX-year be hard. But million. today to would a around issue you sitting exact

Tim Argo

and trended points, XX suspect XX in back in but got has time, where I somewhere with spread that it's I the treasury ticked actually since we Yes. between basis that point XX probably record given points and bps. up issued actually still spread several transaction, some Steve, bonds of a low say December, would that basis has

Operator

Gorman BTIG. the comes Our next with question from Michael line of

Michael Gorman

quick Just of ones. a couple

should maybe and Going how on of to the up back and course into comes competition understand expect properties, of hits it potential space? timing more Or we we how to of focus the that the should kind that? be maybe improving of lease-up the should if I front-end some transaction to side strengths the think over fundamental your lease-up about investments marry we kind of in things, before the about just your acquisition opportunities markets loaded opportunity of year. trying discussions think to of maybe

Brad Hill

And tick and we on and based the to quarter. will first some year market hit into just mean, market at and those come sense the market, my what properties of XXX midyear maybe going close. seeing out is and the as right that in slower obviously, NMHC, days probably to of these I likely the up third last now the half be heard the what for XX is to week we're Yes.

it's before is on going volume sense third my start the to the see to side. pick be quarter So we up transaction really

Michael Gorman

if on baked Okay. then the just terms mentioned but last one. Great. 'XX in front. missed into delinquencies. do you have That's apologize of And collections one guidance outperforming I the helpful. I it, you What maybe

A. Holder

what we consistent Yes, with -- year. it's seen pretty we've past this

I -- delinquencies XX points we've XX XXXX got basis basis points guide. So the for think about assumed in

Operator

the Our Haendel next of question comes from St. line

Juste with Mizuho.

Haendel St. Juste

Yes. had wanted Eric, I to a [indiscernible]. It's a first, follow-up. a couple -- I quick of been pleasure. questions.

from was new lease much And per perhaps the need in rents need on over earlier. would context until now for actual dollar more what change some normal think a change third unit much how maybe spreads to but the quarter? year? of lease be question like would to that to Michael how then not new look would improve, just course this I rates year curious it I'm actual positive,

Tim Argo

this Haendel, Yes. is Tim.

If negative narrow continued that of put I so at all January It's spread, for rents that XXXX. lease the year. if last X.X% example, compared place to of new has you look we throughout -- a and in gap to about think about January, absolute

year-over-year So you'll that gap in call it, look. $XX

back was little leases So about if probably as you July gap a like. you December we see down. above mean that we then then perspective that the what on throughout or rents typically and and new trends of on rents would whatever how can bit give think market what looks would December X% it are trend year, see, I X%

less than of really we a little that what bit something gives in, perspective. you that So is but dialed have

Haendel St. Juste

second question for outlook on turnover year. is Appreciate this that. the My

to a I'm if flat you bit show for levels, relative power But start cause you year, more on had some and almost improvement think close as to upward I to pressure And remember. you I think I last retention last some pricing on wouldn't curious I can demand mentioned expect year. turnover. pushing rates start think that guys XX% we market

So your expectations just you're about curious this how turnover thinking year. on for

Tim Argo

I but that now there and would out supply the does, it is right market certainly, option there. of more all with mean, I they ever that are the certainly mean in than have. Yes. the options people out have argue all I

concession move and pick given to and seen yet now the environment the all that's out supply trave more incentive, So that's -- frankly, up. we right there's there haven't that

single-family to last So extremely with year. I think It's where with over more even it's interest difficult, only reason but grow out macro-driven. continue been home the as are and always to move rents our prices biggest a buy house, moderated has to rates, that not

that's of driving macro terms it's it of more -- title So pricing more position. I in current changes life less picture so a than think and events the

Operator

Our of next from comes line question the Barclays. Rich Hightower with

Unknown Analyst

And again, congrats to Brad. and both Eric

we lean take, pocket supply into it assume the I see more around or $X of guess a new air I billion, in trail right What's you Obviously, keeping great as like. you've going you where appetite, sounds balance up pipeline, a give maybe could if this -- forward, me. and if sort got but like development for we're steady one little anytime capacity? flex a sorts projects you're sheet, can the off. of that development current you Just

thoughts just here. about increasing the tell maybe So around from development us

Brad Hill

pipeline development one of have we that keep we supply is a best it. mean, think especially will pipeline. about million million. forward. it close I to uses today, $XXX think, capital $XXX years it's And diminished want build pipeline takes where had given certainly, that at X we that the we time be I what going to Yes. ago, was And really to that of

job done building really team a that to point. the of it has So tremendous

And us. I I've said for XXXX level think the in record that his in do mentioned had comments is and starts a we

which to so potentially building you where in at another could projects have keep think X terms to we start X year, this and And really that would keep will like that I elevated. us to good level, of really Today, it close JV opportunities that are into because other continued we equity deals, developers deals able where of additional are in platform shovel-ready. be prepurchase we we're backing to with could potential pretty capital seeing see to where out instances our step is momentum and

we're which to us We additional year, allow have like a to that this quickly could opportunities at that add pipeline. couple of projects looking for

So call about We'd an that's enterprise in area on. of which X% that, focus area. kind we'll in us to value, there $X.X continue to exposure like more of our keeps no something our range, that to keep billion it, than

that on to continue will. into that we'll bit So extent focus more, able we to development the to we're lean a

Operator

Stevenson Janney. line the Rob from of SPX Our question next comes with

going Okay. move We're ahead and go to on.

Our of with next Golladay question comes the Wes line Baird. from

Wesley Golladay

Belt. both there coming on migration change Eric quick to volume where and from? the you any question for they're Sun in to Has A or been Congratulations Brad.

Tim Argo

it's to Not in I obviously, the in generally, the to the and of Sunbelt they range. states some coming Wes, New XX% in that's be where outside hovered California, from into that. and And York is from. that It's that Tim. it's Chicago really. tend -- Sunbelt, continues sort XX% of it's move-ins come and larger mean the of to of our

for or year the are as brands the last same the so. they've broadly, been So

Wesley Golladay

cycle. And there doing lever up you're early to asset appetite the a lot year. any this in a Is then recycling Okay. of little

A. Holder

Yes.

that is, we of in those part be fall look of probably the about part Brian So probably we'll acquisitions of is, The the the will point, will bit as year. acquire. those mentioned year. little price the is -- to in of we're a dispositions way that latter though of thinking the some that to back cadence your off

of talked where well might fund little the wouldn't gotten up well. to pipeline It though. that as And acquisitions as go be a far as we've stated seeing about leverage of the of we've bit some as towards that outside some our so we've lever see what you development as of would

Operator

comes question Jefferies. with of from line Our Tsai next Linda the

Linda Yu Tsai

paradigm a really for you're leadership. again, congratulations Eric,

that bps Your that ago? based to negative October. earning of XX does compare -- and a just more negative on how XX% color to pricing on some Maybe year through

Tim Argo

Yes.

XX our So year, points. basis was earn-in positive a last

earnings in points. XXXX so as into negative basis we mentioned have my going I the XX And comments, is

alluding -- think basis was to had that negative provided difference presentation points. XX I that new The -- midpoint we you're our the points in obviously of basis back XX November.

negative a bit bar and the points. That pricing. see XX did from midpoint we So to that December pressure basis in down and November of little

Linda Yu Tsai

drop XX% same Houston, And time Orlando, steep Or supply it that markets then the is is the over down supply down pressure bumpy? of in at like Atlanta, in coming collectively? sort

Tim Argo

we -- think It's that kind part, if when it to about it talked starts you in about, quarter second quarter quarter the for peaked a where but was quarter, relatively because third markets you a if couple that you or that of in range. of earlier a peak that XXXX. consistent back of go right was most the markets later, There's across

on increasing it's relatively expect So a It's steady pretty most I seeing trend. markets. decline. few balance, supply, pretty would are consistent certainly, there's a mean, a but across that I consistent still

Operator

comes question the from with Our line Street. next Green of Chan Ann

Ann Chan

portfolio to going topic the question, first So of allocation.

Over list? to markets your exit And you any enter any or expect are few do on short which so, if the next years, markets new markets?

Brad Hill

have I between overall continue I the X where our mean we will drive broadly and Yes, we some definitely time markets. like efficiencies. larger kind and of our assets in markets that allocation markets out have over or our cycle we're Brad. split is where speaking, located to mid-tier we this mean, of Ann, portfolio X

So certainly time. where have to we certainly not But of assets large to out over the of type some of looking those do X look call or X markets any portfolio. will repositioning

market, continue continue terms I we and that to one for another in. big other and that which of assets out Denver. grow pipeline need pretty is grow Lake need add City fill where continue markets, to for there to to market to a Salt we is newer us, we where newer mean, grow got a have in markets to development us We've In

markets looking we've the markets same our are that certainly that high-growth and some characteristics Columbus, a at of at. of studied looking and we are And market Ohio newer have

characteristics things terms And our lot in nature. as growth that so similar of we'll the see. a job It other markets and of has of

Linda Yu Tsai

cover over to that question, trends construction components more costs to months? last development and yields observed of costs. for And development extent be the Have acquisitions? see use you you material need for than to labor attractive would to or construction a in shifting development any pursuit And cost like drives construction costs changing the second it decisions, where

Brad Hill

Yes. that or saw have mean It generally, we've additional mean, I range. seeing couple XXXX. selectively, I seen seen certain in over markets. really expanded of X% the wasn't subs the we over say seen X% construction I in broad-based in come We've that mean markets, we part this -- GCs. reduction. that's by so point, the better as of reduction to at down. last really labor would costs I XXXX, more in And it we're and in years some probably margins reduction in

to there. improvement some combination call tune and the costs rent we've to development, our costs it, seen So need see the of I to to think And increase additionally. improvement to X% us for continue X% of, we

of a pipeline see as will we those with construction progress of approved. are underwriting throughout we projects some have And more continue to extent we in of that and begin improvement pencil rents, we the those And this to with costs year. to sites the that own

Operator

Tayo from Our of the with Okusanya line next question comes Deutsche Bank.

Omotayo Okusanya

the this add has PR past minded me very transition, get have what in be like, a of you gives for like of the But that been bit a acquisitions rates more maybe to some let oversupply of opportunities My well with advantage much offensive the little doesn't to or year time -- distress my and again, take it Again, congratulations out with still to of developers. that do distress cap for pretty as in sounds there. for It tight. Eric, kind guys you the doing marathon. question next are opportunities looking they sound to so kind

And of kind this how thinking part opportunity we Just we again, that past an opportunities value, typically get are that of this the value-added will buy of opportunities of of things X kind kind start will stress. about better about, or kind in of think really shareholder maybe it actually be replacement can be? you So that create described kind for do you've costs year? the to those of environment how you

Brad Hill

in to haven't lease-up. are we where in projects bit it's of capital. -- a stabilized given that that's supply of our there. properties Tayo, before still of will are we they're we frankly. those. we operating that's it's out And and if they Brad. strength focus platform. distress, return advantage generally to Definitely, similar these of lot higher think really Yes, And out I wait their they selling amount tooled stabilized very mean are have, there take at I generate a and just seen until interested the that there that given a continue pressure some some of are sellers mean and do face But to earlier those sold for a of those continue in And we'll price. the

like find of get X% cost. in some close experience these still our relationships, replacement based to able were our assets We a able [indiscernible] of markets, high to in on replacement opportunities our some to basis yields these So well below that. we're

focus we'll in continue to So area. that

would due. that of we're that of that. most in some in for XXXX, part, assets perhaps some with refinancing of sold something the You not distress that has could generally. some interested But the that see XXXX be to come Most

Omotayo Okusanya

gotten issues thanks the one in better ask both kind about some markets. of could those in other bad quick some terms or of as I were if And of gotten about one. update again seeing of of of it's on well activity fraud-related in preventive against your Again, Helpful. in you're for haven't debt worse issues. Curious What that, and of the some terms whether terms your delinquency. going measures also that overall

Tim Argo

is This Tim.

has portfolio debt. you would the think seen pressure, there of a bad I We've second. out fraud You been cut say Atlanta stuff at were of and level really continued on-site AI or little that for kind trained a of terms Yes. Is asking I or correct? and a do, if lot that there's spot that is of bit type as about have are I have machining about we has delinquency a just tools market of the got level. broader place, anything training income terms lot, about talked both take plus a help in look off and there where with resources looks where we that in mean the our that are we been at to of both sort people that documentation we well, those. some at IV in and whatever, that we've corporate consistent

a to for Atlanta, but started out So see be and term, debt. it been helpful, in occupancy better preventative very long probably lower hurt while has play continued to being we there going that with it's bad

us. So all honestly, not much of an issue for at

Operator

question comes Markets. next Kim of Our from the line John BMO with Capital

John Kim

markets the transforming seeing Eric, those to wondering most feel I great. growth markets rates blended congratulations where a the up this you in year? some lease driving what And which MAA from about positive lease be on bullish -- year. question are? versus in improvement good last about you lease And had press on I'm markets release, talked or will

Tim Argo

I'll is some detail the answer This Tim. of there.

widespread quarters good markets which larger so the to was in one would well. as mid-tier in and in and January, we it or And the pretty had markets So of is I encouraging. among seen some really has last we've some trended where see point we positive portfolio. was blended XX Tampa smaller that some did traction

There's good until will. I later. see been that is up ones the there's have if could one it's revenue where good think that's are the the and you improving, performance you When will where spirit we revenue some XXXX. going improving ones pricing the about to and markets, good tip now, in then more of in drive think show

as the bucket in that you later the It's D.C., would this And to we to expect out better laggard mid, Orlando continue be we'll is from see are think bucket be still one So that pressure markets to also it's to we Houston. Then supply that get markets be Tampa would as to put sample first I in there. starting a we've we it's talked I continuing show as expect some well us. two are a going and the some like improvement. trending performance for with point that Charleston, then year, expect and continue about, would be to that Orlando strong. those there's and to But couple as

John Kim

rate. your comment that lease of to to for be X.X% of you new if kind growth you growth rate the current to gain order get headwind year, rent assuming? your in are lease negative to a much And that how on market then And what can and will get

Tim Argo

to about when of which now, I time is year right gap mean tends it the weakest. always this out pricing gains X%

So were December market expect rents we little what were. I bit X.X% -- January than higher, would about a saw higher

best range. So is trend expected I the it our the of over think will that then through lease up in talked new about summer about that full and think kind year, But way be the to trend probably to down. for negative back rates just we

So full rent -- it that growth. the well year, correlate market pretty over should with should

Operator

We for have to I no call will closing remarks. MAA the questions. further return

H. Bolton

No the Okay. further from company. comments

we or at and see us, will Thank joining you. you of everyone the appreciate we March. So in February conference many

Operator

program. This Thank concludes participation. today's your for you

disconnect now time. may You at this

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