AvalonBay Communities (AVB) 31 Oct 172017 Q3 Earnings call transcript

Company Profile

Participants

Jason Reilley	AvalonBay Communities, Inc.
Timothy J. Naughton	AvalonBay Communities, Inc.
Sean J. Breslin	AvalonBay Communities, Inc.
Matthew H. Birenbaum	AvalonBay Communities, Inc.
Kevin P. O'Shea	AvalonBay Communities, Inc.
[0B8FLS-E Nick Joseph
Juan C. Sanabria	Bank of America
Rich Allen Hightower	Evercore ISI
Nick Yulico	UBS Securities LLC
Austin Wurschmidt	KeyBanc Capital Markets, Inc.
John P. Kim	BMO Capital Markets (United States)
Drew T. Babin	Robert W. Baird & Co., Inc.
Wes Golladay	RBC Capital Markets LLC
Hardik Goel	Zelman & Associates
John William Guinee	Stifel, Nicolaus & Co., Inc.
Richard Hill	Morgan Stanley & Co. LLC
Alexander Goldfarb	Sandler O'Neill & Partners LP
Omotayo Tejumade Okusanya	Jefferies LLC
Conor Wagner	Green Street Advisors, LLC
Richard Anderson	Mizuho Securities USA, Inc.
Jeffrey Pehl	Goldman Sachs & Co. LLC
Michael Jason Bilerman	Citigroup Global Markets, Inc.

Call transcript

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Operator

Good morning and welcome to the AvalonBay Communities' Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following remarks by the company, we will conduct a question-and-answer session.

Your host for today's conference call is Mr. Jason Reilley, Senior Director of Investor Relations. Mr. your begin may you conference. Reilley,

Jason Reilley

and Thank quarter AvalonBay third to earnings you. conference Aaron, XXXX call. Communities' welcome

XX-Q Before XX-K we of release of in begin, made please There afternoon's and note that forward-looking press differ may and and discussion. associated forward-looking SEC. company's filed materially. are the uncertainties actual uncertainties yesterday results during a with statements as There a risks the and as variety discussion Form well risks is with Form statements, these this may be in

usual, press definitions on available may The financial other As this an discussion. release attachment also which and measures our does with website terms, be include today's is non-GAAP used to operating information of at in Communities, of reconciliations www.avalonbay.com/earnings, with this review for of attachment to we and call And performance. CEO remarks. refer results financial I'll Naughton, Tim? the our turn that the AvalonBay his Tim over during you encourage and and Chairman to and

Timothy J. Naughton

All a into with of discuss Q&A are and to I'll update Sean welcome about to out in Fund be will And Southeast lastly, some recent years, that intention Florida and to our brief QX the posted and Kevin of today over Denver all years platform that how start market close headed this our the right. about comments the the three some QX. Thanks, how and talk me provide us positioned and through slides announcement enter balance into operations then we'll overview Matt the development O'Shea, Breslin, wrap results afterwards. at and the will point Kevin enter thoughts next will each in and I'll QX future. positioned sheet insight available on and Birenbaum night our cycle. on Matt up for II we've to of growth we deliver Jason, provide call. are an with activity and two some the Sean last With then will provide portfolio is to

now And completed or redevelopment. the on growth FFO same-store We a revenue redevelopment. stands and starting redevelopment; X.X% of per including growth then at sequential in X.X%, for in million X.X%, quarter at came development included Just X.X% the same-store X.X%. year-to-date including X.X% lastly, X. billion. Same-store $XX $X.XX in share another you to once bringing at was growth year-to-date new total include or core completed slide QX, for revenue growth Results X.X% quarter

this or Year-to-date for to will now will earnings $X.X will so In full-year basket detail range, who'll expect results. discuss above complete an another growth in more initial operating I'll along it Sean, assets. years. and how describe Matt his these development the portfolio We completions over $XXX million in and underway drive full comments, next for rates cap prevailing about of to completed low couple to the expected over year. turn NAV with stabilize, well at are which result yield in completions QX, X% billion, in

Sean J. Breslin

right. All Tim. Thanks,

seasonal to new X, slide in trending Turning consistently more the generally move-ins to renewals demand long, in equilibrium. following essentially and with produce our X%s to same-store a the pattern. with We've consistent change rent supply continues in that's being X% low year range and portfolio been all X.X%

move-ins while renewals new For averaged points. were QX X.X%, XXbasis

X.X% Mid-Atlantic, Northern Greater the north low Southern regions, change X%s, in Seattle in the and the followed deliver Jersey In change continued the X% New low rent to with the California by the the produced New for all quarter, terms the California, third X% rent X% range. of range. of way to while lead regions, Boston York, change in

portfolio same-store very the is seasonally Moving for to fourth the well-positioned X, quarter. slower slide

average roughly points basis lower. is basis above same-store year last rate points for and trending physical availability XX Our XX about is October occupancy

the portfolio, For met development for expectations quarter. we our NOI the third revenue and

third that pace were of quarter we're development quarter. consistent over detail. our during addition the In talk the and to expected update And, that, with mid-year I'll with comfortable deliveries both for more Matt absorption with to in turn our it the fourth deliveries about

Matthew H. Birenbaum

Great. Thanks, Sean.

yet X underway are Only communities both current to development generated future our as started in from from completed million with our lease these activity. communities have and realize by any of ups. development, growth NOI $XXX not to good even in come finish quarter. to expecting was properties worth to the million that $XX NOI, those and nearly that NAV Slide Turning should development shows earnings leasing the that their current half we're of provide NOI

there's So, On FFO. core of future lot come. to NOI translate a X, we clearly additional into NOI slide this

earnings translates yield into NAV if initial we Because raised Slide not have is but properties weighted accretion. in today's book ultimate cap that capital depends share the cost this out current from what business. shows spot believe capital available billion of on to of to development most, average the We sale were creation fund or the of completion billion accretion per value earnings per the This turns X market this $X.XX X.X%. all assets value rate and $X.XX creation we've of they completed on required this for basket X%, of on would into shown between initial sell and The weighted these $X.X X.X% $X.X share. of average of roughly translated of for core upon FFO incremental which to of and range be $X.XX a capital turn cost here in stabilization. average weighted based on X.X% impacts translates into a

very long record Turning our all cycles. track from market XX, strong delivering activity have multiple a slide returns of we stages to risk-adjusted of through development

achieved the all a this we $X.X deliver XXXX to the consistent development Tim throughout we've of of chart year in completion the XX%, shows company completions late billion margins year. in margins As at The mentioned, to record development expect to cycle. going way profit compares close same with back and XXXXs in rates cap our yields left to on of those the yields by that

of of With the spot global even for And positive various single of point financial scenario running. at cost, cycles creation we're deals worst-case of delivered term XXXX the sorted development IRRs investors long-term we those plenty today every our exception XX are were crisis, completed. seen at well. yielding creation have chart the years long long-term on X% right the not The of they year completed for builders, XXXX because the we book returns as where that can on in value which completion the unlevered year from be the of height value business have in on in by the merchant and year allowing

While earlier the been of well have capital in of the and cost have for in excess long-term completed were deals stronger the returns, delivered cycle periods creation time strong delivered our returns shareholders. NAV have all which across our

Now, to Kevin performance sheet. I'll balance turn Fund the to discuss over it and II

Kevin P. O'Shea

through cycle, is employed community is Thanks, commenced the through investment primary to we in In just which through create this past Matt. touched activity acquisition vehicle our in and so development; we've is new our we Matt we way do last on XXXX, fund to which way one acquisitions. quarter. allocate investments, another value this through added value second capital which sold

attractive returns, of property excess and well promoted a million the fees, certain receiving management thresholds. as investment AvalonBay fund's partner, to participant addition of general asset as In above performance as, share $XX investment in returns management our for of received return achieved

Slide bottom AvalonBay's strong. on the XX, Fund see As you can were II returns on investment

on multiple Excluding X.X of cash fee times rate invested income, of AvalonBay achieved a flow XX.X%. a levered its of gross gross and levered return internal equity

XX, briefly on balance Turning evolution cycle. be sheet of highlight a across balance it to to the might thought helpful the metrics Slide this sheet we few

our have over the unencumbered composition debt, four net not we Specifically, our rating last completed ratio, then long during XQ percentage, XXXX our acquisition and three debt-to-EBITDA the today. show we how our Archstone NOI and XQ XXXX evolved periods credit after downturn, items, of

are capacity stability credit they growth the as it the to significantly As company's I'll market provide to Tim you have history, arguably strength, discuss flexibility can Florida. for cycle. Denver and to which the been now, as turn and financial strong into ever see our well throughout back our expansion improved over cycle in And and have continued bodes and profile Southeast

Timothy J. Naughton

XX. Thanks, Kevin, slide on now we're and

previous know, we with market entry As previously announced – into Denver you the recent acquisition. our a

to these our decision years allocation. about and addition, intention our talked selection you announcing to it'd to expand geographic little In well. markets. more that thought market with into a factors be inform We thoughts two helpful color we're the today behind our some footprint with respect the provide key as expand over portfolio Florida of number and Southeast a We've our to of into

we years, it's to are the I saying been my First, having comments over by like generally while as viewed a had guess preface I'd one. stable that strategy static a not

markets In fact, allowed including into And submarkets. customer time, rise our we product, customer through and entered value exited younger while markets and Seattle over a Chicago and Minneapolis. social the entering many we to to strategy over now seeking evolved a target through which high infill AVA. demographic Baltimore, years, oriented like our us suburban Eaves has markets exiting TOD mixed-use have multiple and And the through urban, brand, and like expand enter brands, segments, and

slide and but more Florida just an higher we believe we boomer economy economy. and does Denver selection, reflect profile, to be related enter over-index of and on rather factor markets of our segments. knowledge-based our education, again shift with, look finance, educated income And for implementation target foremost, and college to percentage MSAs knowledge favor demonstrate decision to the based strategy, evolution jobs. healthcare migrates of that some strategy. this the to over-indexing appeal will comes related attributes in our first when customer and Southeast second and is not So, key employment, of as we in the markets winning and that there and markets that market we younger, to it losing that include higher a that a A Increasingly as prefer stem

developer lastly, housing characterized to level characterized lower market. markets markets politics. importantly, navigation that and portfolio support competitive and local where important rental deep rental in by of and where investor. as which talented And markets regulate skillful we of constrain value Markets a a sector affordability, higher active that a its and the of like through and is invest for or factors life we both by amenities, markets support prefer understanding infrastructure helps of supply, cultural help Fourth, advantages prefer the growth housing, its our either to significant lengthy entitlement tougher processes play we quality and grow and propensities. within believe demand Third, public create can value-added we

XX. Moving slide now to

demonstrates that of investor, markets rent with correlated preferred growth attributes. return are a validate the hopefully for strong attributes consider these a to is which we something component over critical course, Of long-term, this long-term and

slide, Southeast at the level As the This over stronger. you years, over XX Performance chart been actually that have can rent portfolio. Florida compared our last Denver level from time. overall and favorably this market somewhat to growth reflects REIT has see

performed markets. As performed while Southeast Florida you has can Coast with than has in East footprint, Denver Western stronger line see, our our

One make I'd expansion XX. last enhance is that slide markets to Now diversification. these overall to like portfolio point,

California, that Southeast portfolio provide thirds; a levels and particular greatest At split our with and allocation Northeast. third the the third markets. from concentration, well of three California is the is into higher-growth correlated diversification both areas third a roughly in Northeast, some existing and Florida not target markets a markets being

and penetration terms and leverage help invest development. capitalize accelerate to we'll developers of pipeline strategy, acquisitions to their choose to we expect may local both And initially through market our knowledge that addition, expansion in objectives. market In

a priority, tactics the course, will we Of no and we it's been, deploy allocation target function will as reach ultimately any timetable across cycle. Smart set allocation. and always to the value opportunity look our to capital be have of appropriately capital remain

reforecast to growth the and So, well Development our and NAV tracking into positioned over slide meaningfully quarter are is outlook it QX. next was three FFO core years. two development in headed FFO and our should summary, XX, to to portfolio contribute with deliveries above the turning years mid-year a solid

allow Southeast economic is to evolve, key we scenarios. balance create downside to even believe add Denver our from and fund lastly, that additional those market to Our sheet growth markets excited as strategy contain continues to many time. protect footprint, to well-positioned shareholders for and value we of And are as Florida more our attributes the over the company us

be So, the that, to call with we'd Aaron for happy open Q&A.

Operator

with Citi. we'll Nick Joseph sir. Thank you, go and Ladies first gentlemen, to And

[0B8FLS-E Nick Joseph

But weigh expansion. deeper just on Thanks. going your why I the these wondering new you Tim, and now existing expand how markets? right into markets, did market expansion comments the your to then appreciate time against market is into

Timothy J. Naughton

a had current Obviously, this yeah, standpoint. acquisitions, to as respect nice in it I just the relates fair Denver a timing trends. a one, to into sub-markets a current Nick, cycle. a very run be say several we sub-market guess, question to given I'd we're from years cycle. sort couple will cautious focus, particular of think just focus more the are supply constrained recent trying we more that with really more things; particularly on bit

advantage take from mentioned, to is As both economic our or these at of anticipate of acquisitions be in over I sort we've do this we markets downturn it land need really, you as learned distress footprint, occur relates and might well guess as business. I I'd any to using to development, that as behind correction, the frenzy existing point. And any us that development. say also time

And those which at out. development establish in three so, good JVs, the to then to advantage think tap it's into do deals sort our of markets turn. deliver we might so look we And years years regions maybe positioned way I attention did to two a that is to willingness when mention, are beachheads that do to both take

there, of any may so, our they five diversifies timeframes four risk years get when own from you it of out from that of a be or JVs from of think think sort development, might we have of acquisitions, kind now timeframes as sort risk And sponsored now. mix to against you our cycle years development or that

our been and them to able competencies essentially. region. our teams regions As is objective support build of I key in in And to long-term to office full-service mentioned, have a our think has great each I appropriately, one

our to to existing always those markets relates penetrate deeply. it we're As looking markets, more

is out and expand consider, don't a to think think bit. to we horizons our something we we're an always But today do it's our there So markets. in missing opportunities current opportunity

As you there, we're heavily knowledge-based economies, favor markets, knowledge-based on we know, monopoly we while as I a earlier, mentioned AvalonBay's and don't have jobs. indexed

because heard a understand is kind the HQX almost Recently market want, it's of Amazon they was has employees think I interesting, to I've that of of move Denver that. I destination. it who think any evidence sort I to allows Google, such popular project as recently shutdown

the Northern provide regions Denver recognition a these So, a release that case in it's the both a we case Northeast think Florida, California bit of in and Florida, a of – valve particularly of way California. Southeast and in the particularly,

that's I So know to responsive just don't your question, but thoughts. if few entirely a

[0B8FLS-E Nick Joseph

term? that other that And were then considered expansion one expanded and the just there or further in be into then announced follow-up, Yeah, very markets was helpful. near you any medium Thanks. could

Timothy J. Naughton

about made and sort this markets, the existing been we entering on opposed the question follow-up. for announcing most as comprehensive lot honestly question. Yeah. footprint. of something reasons we so announced today. of Well, of the that along No. a maybe XX Thanks, years, whether Denver, acquisition markets Southeast for represents sort every Nick. the exiting I after first we had XX thinking markets, down get to years one it's because cases, our a years, resulted in our Florida it did right two all, Thanks us of on your or in is we've and we doubling we of In last markets, and a that earlier take look the the mean, lines a couple But footprint, we're at always the decision

expansion there's announcement think further of don't this. expect that should near-term So beyond that any I you

[0B8FLS-E Nick Joseph

Thanks.

Operator

of America. next Juan Sanabria to go with Bank We'll

Juan C. Sanabria

your hoping deliveries. some kind presently? what could just out was on guys And stand as in getting of XXXX for supply, see should give you weaker latest XXXX, been I thoughts your or across it we Hi. improving regions which expect slippage. you versus In there's main as XXXX, markets

Sean J. Breslin

into What about – that I us in communicating units. it's across to address In from in in recent books on inventory. what for communities units of XX,XXX in Based the happy today hearing in I'm to is, get construction what range about year that X.X% out. XX,XXX about based down under terms on tell availability we footprint, XXXX Sean. that look we're construction may out what's multiple be our of history, the probably a of regarding particularly environment is can where developers a it's and the of is is the have about XXXX, delivery X.X% as for recent at are and present bit of difficult high you would delays come deliveries we people to this Juan, that. labor or actually Yeah, on can the January that precedent there, actually X% guess And end inventory. XXXX, today see things on my terms I'd expect through little sort that's footprint X.X% that based and our the comes completed, of of

so that. expect increase like be in year guess probably more in the footprint, supply X.X%, maybe year. My supply the versus is, if delivered And when than XXXX. next look across January. across footprint, actually what But look to you gets just will less But X.X% QX we an would will get probably you XXXX next to

points in projected be to a San distribution, County, across XX you Diego, And all regional primarily of markets I year, As The other it next relates the then, to X.X%. function is be come probably an that X.X% Northwest Pacific market major markets to the New down. Angeles all Boston down basis about you relates points to market. And up are L.A., basis can expected supply it's supply to the are bit. increase is XX up to know three then Most be flat up up California England in little and about tell that in more there, basis coming a the XX points. expected of markets Orange significantly to that to in from Southern Los the about going

a say deliveries little you what more start Boston the XXXX see And really to markets I'd be is, of a generally I in So half it'd and that supply XXXX in see you the particular. when mentioned, before with of second exception that. slowdown,

to of now. right quarterly You know, inventory we're get of to year. next on about QX you XX expected points basically running basis off basis not That's until a fall

fall QX QX to off. start So and

So sort way to that's broad about the that's of think if it, helpful.

Juan C. Sanabria

to That And follow-up on any you California, availability Northern comment and impact have on of you just complete a is. hurricanes expectations in that, the your if post the labor seen to developments? can trying then for also

Sean J. Breslin

Yeah.

I and Tim. Matt expectations are we or...? But one probably why take second as talking one, well, So, the supply the first the first you one, about talk say or when don't expectations about you can

Juan C. Sanabria

Yes.

Sorry.

Sean J. Breslin

Okay. Yeah. problem. No

in deliveries for expectations, right expected the really So, if It's little terms inventory is next San range. of that supply the only in year, you of into XXXX, of be Jose. X% expecting to the now. to a X% market of And running see it low deceleration in look north is a three we're

it's you So, San we at pretty market San at the see in look East drop Jose when look in XXXX, Francisco. off but a you material deliveries expect to and the relatively Bay flat in

Matthew H. Birenbaum

It's particularly the labor. for bit the I it's early reasonable Matt. second speak. is to to it that impact construction of the little particularly less to market about the seems probably for labor assume speak I and can skilled construction, a going guess, labor to too tell, hurricanes. I'll certainly impact availability, question This

something the started, a but obviously rebuilding in lag impacted gets a for that have really is on it's bit usually that. seen yet, the the efforts markets watch We directly were haven't to not – there certainly, which as building that by hurricane, little effect most we're of

Juan C. Sanabria

you. Thank

Operator

ISI. We'll take our next question with from Rich Evercore Hightower

Rich Allen Hightower

Thanks. good market quickly, then run new I've in by third that. And the you if quarter? really and Hey, morning, follow-up guys. though could Sean, got to a renewals

Sean J. Breslin

Yeah.

okay, basis portfolio I quarter rest to third rent share on to going XX regions, on six change on move-in, X.X% if mentioned that. remarks, each the of markets speaking you the renewals markets, a X.X%, one lot across and for was detail there's As opposed happy is time maybe consuming that's but the in to the offline we can prepared broadly that as of my points of take But there as XX offline. across with which opposed through the out

Rich Allen Hightower

No, Yeah. fine. that's I that. appreciate

Sean J. Breslin

Yeah.

Rich Allen Hightower

in sense lease-up. question, in supposed of future a the give to NOI that's the hit Can the course roughly? the not Second you guys when $XXX million presentation over from of us of development

Matthew H. Birenbaum

that on kind are yet all of deals that represents I haven't our development think leasing. that the started attachment

over years, quarter it next, you leasing, go start aid, to the to of which but kind stabilization. So, call from that will lay they'll if out to leasing it's attachment all go starting they expect it, basically two

Rich Allen Hightower

right. All Okay. it. That's Matt. Thanks,

Operator

go to We'll Nick next Yulico UBS. with

Nick Yulico

the you've around about a still longer you're In cycle signs good having expected? Oh, talked level thanks. of number, annually. starts of past, that because apartment about $X lasting that's development if raising wondering the thinking I'm of and than billion whether

Timothy J. Naughton

this Tim. Nick, is

at pipeline, kind look of kind development you it rights of headed. volumes If are telegraphs development our where

think, worth three-plus of and I development about a years' three half pipeline pipeline. the know tends three to be that years, years, have in maybe billion $X.X you we

$X of that range, So billion in kind little it's still maybe less. a

costs through to in saw and hitting the construction it gone targets just the are going past, in are now is a we sort relative the you trail and kind screen, cycle earlier the said less of where deals bit, just even compelling going think to are cycle longer, probably we've and going less we off have the given will, given – and though if rents. As making of it's right maybe really economics the

Nick Yulico

go you whether that press Street whether of Avenue, in you sense Okay. remind the XXth on there's kind is can what get this us in Any future know you your it's have just right that about not, investment for this project? development Thanks. New is – the or question may development you for other How accounts governor One and you some and supplemental is the into – that project if been Thanks, Second projects looking know resolved? the Tim. of the the on the for level parkland And of when York in project? much forward. that that could how on have

Matthew H. Birenbaum

is difference about that's playground, This a there, and what's interesting Nick. an mayor. distinction Yes, the the which and between a question governor Matt. Sure, legal park matters a there's which the to apparently

on it time. visibility get So, might not in we And a two that billion add schedule. ways, development of want value the fully million that in to the don't that some maybe it's predevelopment to yet the estate. it's $X.X expect I know, the worked next about start of that is It that That to really a reflect will take out, $XXX some that so will terms years represent doesn't away but million, as much actually a cycle out. we think starting, year, great next how that's time everything lease, we $XXX to in does deal have years how depending clear, is we to in ground – rights. the of three view just expected real you shakes project from so that – I be say, a

Nick Yulico

Thank you.

Operator

Markets. Wurschmidt KeyBanc next question from with Capital take Austin our We'll

Austin Wurschmidt

morning. Good taking for Hi. question. the Thanks

was you with the of next curious year, the see that looks like last at your supply stable backdrop bit line-ish. in it then like-term Just I that really in little a what inflection? we remains looking are you rent bit? track slide pullback outlined just about, into in ahead the driving that growth deck, a And that year a or could you think are markets do talked

Sean J. Breslin

Yeah. Austin, this is Sean.

it of change numbers is relates down rent versus year. to year year through this is be rent about, we've two really probably relative Jason to overall across markets, this change function in year, the One the of is the so walk job generally clear pace but can slower our U.S. and change rent the talked and last as two last you, a as things. Just is a just creation down. to with that supply

but I think, point, about that point to inflection aren't really to that basically we appears talking of we're leveling be all around might guidance next terms change slightly trying to and it X.X% provide as in terms side XXXX expect, X% it is as supply relates the much year, rent essentially We're to relates we in trying long, supply make which certainly year In to off. greater the context to is of to some XXXX. on what similar

Timothy J. Naughton

maybe And add is to that, just this to then just Tim.

little Just of the I Sean macro, certainly, is anything cross-wins see in our year Sean tick terms earlier, for terms macro we supply in of to – as a expectation, guidance said, we're else. giving It guess, next but environment, not probably the bit. more up than mentioned

right The now, the finding those sort given at things and as We formation. such a all on I think, household confidence of rate is unemployment to and things rise probably the stimulate all just rates think bit, of but are on rise could – labor and positive growth by bit, is offset difficulty trends we some being the equal, help expect growth low those Consumer skilled job tick that little participation well. continues as labor, down business to a well. little increase, a wage being

translate So, I be getting think into be of to to it general, portfolio. think, think, our a probably without that XXXX, much into might shaping there be is up detail but probably terms it's in in – I environment decent – there's how offsets, more for some going we

Austin Wurschmidt

kind in portfolio? was just years XX on, Florida Tim. rent of for what detail, versus lastly were your average thoughts I above last Southeast and both curious And appreciate Denver what me, the I over then, the just growth you the the overall attribute

Timothy J. Naughton

it – We're this of say, I'd than has quite cycle. growth markets the markets, Well, least Sunbelt than markets had greater the pretty side. that well the of lot our some in of the a even in is as lot the true seeing some certainly at the coastal that – mean, hasn't our I Denver even haven't that well. – for of have areas really, demand more probably accumulate probably supply But it's – we – the – some it's strong the has suffered it's a it's from lot and should thought been actually – much now. been tech jobs. in of and Denver markets, higher of performed growth and the Sunbelt hasn't of Supply a right lot that a – in Sunbelt – the on of instance, the we seeing and some that been captured

become – has so. they've another from kind U.S. of Seattle Northeast XX Western cycle ago, become saw over we're the in somewhat last And Florida – anchor somewhat becoming seeing like think, some know years anti-growth certainly benefited of tech initiatives Denver has I that we perhaps the a you the the become or in So like – Southeast

Austin Wurschmidt

versus one you how And just the volatility through quick to think portfolio? just curious follow-up of that. existing cycle the about these the I'm markets

Timothy J. Naughton

Yeah, you know, great question.

tend would stable. Florida be Denver So, more tend Southeast volatile, to to be would more and

So, of negative my D.C. one market Florida the – that's not or Southeast footprint. our not of with remarks, earlier like which- mentioned the in as rest is I sort well-correlated

tend lot of you terms us be of for thoughtful to the allocate Coast, perspective. capital to the what – – in timing you see be cycle, you the So, a which that, more track West Denver you be would to and from some over would sort in appeal more means and there's how course careful got a of whereas

Austin Wurschmidt

questions. for taking Thanks the Great.

Operator

next We'll Capital with our from BMO Markets. John question Kim take

John P. Kim

opportunity a JV one existing morning. an far with big retail? GGP on its an of their for discussed this you you How Thanks. agreement multi-family as earnings developing to build Good Seattle is in malls. call as of

Timothy J. Naughton

Tim is an Northern a This aware here. agreement in principle in Seattle. single we Yeah. GGP on announced that project Yeah, are

to every you there's been You of time know, – structural of longer manufacturing, from economy in you the a massive change to from you time know, happen move there's in resulted estate. move economy. to when as It's information repurposing agriculture a manufacturing more tended real based over period that's

nature area it's of we're are digital with happening economy, only to it's jobs. is think, that But trends changing upon in relevant just commerce, we're now GGP. the going to of the to just blurring the seeing based just I which – a number work accelerate, in there terms whether work sharing knowledge-based right play, going in of – things of that's of the

in going XX a think estate to estate has the that's to XX terms XX need the the over great And last big next – real years. to that's consolidated years over repurpose to think, real impact have of I lot we XX years of been a years.

estate during solution, period is owners great time, with when density that an of we so, when part great of these there to And it to opportunity is have that real some think the repurposing. housing high consolidated – partner comes

a long-term the big to to to a based that really it be it's XX we're next we the real going maybe them, a these just had more playing the residential going be to the at take working opportunity may the has for In to alignment or residential, helping on terms Federal, may said, and sort going over re-plan its of them have Row usage mean that's the a estate. partnership, where role of other own – side, I to the for letting sort It years property, we residential that sort real together structure rest which deals form or XX and we back in just deeding we've structure, in years different there's we it's to of we're it or Assembly of of piece just through the retail forms already and shift partner we'll re-plan of we in believe condo trends and where be a estate But clear of the the be like the property. It building retail; where We some than that the splitting ourselves great take be they like with a owners. location repurposing JV existing of, taking seeing. think that a longer-term with of of own own viability larger GGP, upon component, done. a and that sort of the or need of retail might interest, Both long-term we structure. condo and amenable it owners on generally it the the think of own structure, where

John P. Kim

or there the it characteristics or similar So land, to as multi-family, as depends pretty rights benchmark? are ownership are freestanding major of far the control differences, on

Timothy J. Naughton

and depends. you think, we're one a to again second component. it's control analogous think, and a own sort we So, I case, it of And where – I in of more do outlined residential condo case, there basically what it'd structures piece first the today. and I owning structure, kind three may be it And the of going one to relates the be of – it to plain. it, sandwich, to else. going or to to sense it. to asset, the – as the to case, And speak, consent so to financing whether this it -- we're rights, there – make anything sale be And to is have the going going of we're owning they're in as other venture relates is mutual ground

John P. Kim

amount portfolio? then reflection on you least both in numbers Do developments or And AvalonBay describe in just that's see Can and is case? age a sector. on our why recycling, it average spent returns or this CapEx you asset question better just just maintenance Okay. the a of of revenue of the your CapEx CapEx enhancing

Timothy J. Naughton

Yeah, happy address to John, I'm that.

kind – look You if you that's X% this our but at the And CapEx. at recurring CapEx for year it know, NOI. and look you call roughly last if of year, – of

unit point, that, at you is look which revenue fair $XX on yeah, If dramatically about than of peers. we're lower our spending enhancing, most a

for returns bucket understand invest how capital and asset important out that same-store we something -we pool, and think separate may is we that in from redevelopment you the is capital. the our generate we're to the of terms investors in that allocating separate As our that on which know, we

So that certainly it. do with has something to

of to both and we're by CapEx. we those of at in certainly age can thoughtful play demonstrating we're into it in investing whether defensive the CapEx that portfolio we're that that portfolio, sure of earning sure things also being about relative you sort make that and of asset and look the in timing appropriate that and the factors the at sort. all investing our nature go the investors others to to we're through the But offensive terms In of it's and returns want offensive-oriented to time nature make

makes So, and hopefully answered. that sense, your other been questions have

John P. Kim

I'll follow offline. you. Thank

Timothy J. Naughton

Yeah.

Operator

Babin next Baird. go Robert with Drew W. to We'll

Drew T. Babin

Hey. over if first the the strategic look Good four price the is of on three quarters, really terms the the the of anything next at pipeline noticed front, average projects or development velocity ticked in the related delivering leasing just units morning. of that quarters same next maybe on to the and disclosure down the over at quite if a I in delivering a – bit. yield in you conceding a progress on bit or bit on I'm out leasing wondering there to is something that's going little pipeline? just increase things the of moving time,

Sean J. Breslin

in and yield to community of there of to. either the Sean. take either we're extent is that, in terms Yeah. But or want finish jumpstarting we're to it quarter. that lift initial price trying Drew, occupied as particularly To Tim mentioned to the no month on it, velocity, that that the – Dogpatch quarter to the seasonal of velocity a Station this before slower get that if a the a relates jump the took and more velocity, on get get sense, XX a leased close starting that as this we we to the was little some and give to fourth question welcome both will one is it a little during And quarter. third example, to bit in particularly an leasing kind as trying or as leasing we I'll a out that of in Matt you XX push said rents quarter, certainly then particular they're in, I to markets part and up. on I of and North case the into or hit relates Dogpatch, to

In amenities, still on the Dogpatch, in construction. to heavy early delivery, the just it's it's all have going addition

time. So, bit on little price you that tend a of to period yield more during

And this occupied the and of range penthouses of the there delivered to accelerate won't probably project in know having completion there terms real that late trying XX% instead So Station, the plus get summer percentage. North lease-up. rents until occupy we're there spring. now that the some the we them We're larger were in in just We lease terms of of the trying in we to sit for winter.

assets in attachment. play some like execution at into on reflected the rents that on see So, level, come development plans you things certainly and that asset of the the

Matthew H. Birenbaum

Hey, This Drew. is Matt.

it's basis in quarters, anymore then in overall reduction a quarter that last other as points not it on we're X.X%. Just And last other the the lot to deals just yield, bucket Sean and both the the higher in XX erosion development of that the quarter yielding. that that relates that, is second that quarter leasing that's to a that call the it was that it from of half bucket, were And deals developments the yield it probably this are just of the bit is little a follow-up of completed mentioned. to on bucket point X.X% I think the and XX about basis quarter half changes

Drew T. Babin

being then the market Denver wanted helpful. little far Southeast this Great. in to for I study That's of plan a it's very on growth case dig the Florida. kind bit that only in acquisition and And Lakewood so

what's Specifically be market? and unique that terms sort directly in to in of market about Mindy may barriers drivers in Lakewood, concept, of, demand specific that entry, the that

Matthew H. Birenbaum

a the most planned on a a less Mall master that Denver of It well. is Lakewood and in is product than I controlled National Renewable for there seeing Lakewood North, Denver. one the community being kind is of between of really supply lot in off of is A Laboratory the it's This definitely border amount includes I-XX is Denver fair called Golden, it. submarkets Mills includes of it the it's was submarket Energy, office, part take This across freeway can that delivered which West, a Matt, of lot the as Sure. downtown. in that's

out constraints it one over by which controlled the into a decades. part, highly it's certainly of its kind course as there is, on even environment so system, of own but And beyond when as a that's not of permissive you of a has then the there. not supply Denver. it's restrictive Golden, immediate then lot it's that family the Lakewood So It's submarket Golden But allocation is broader out permit get as built is jurisdiction. as

the think into the and get I So the regulatory some so and see is you it you is supply of of to in further the Denver of start this that less to more are looking foothills. place the go, that's is supply, so generally that and great seeing area which up to constrained many part lifestyle, in people on to And weekend, what live, asset it's is for that an which on out west topographical, a is that's is really gets, appealing It's Denver mountains. you mountains it some folks. get the

this lot want is of there. cycle, excitement offered a this At of lot lot some of being pricing that strategy risk lot delivered. and activity it were about return. adjusted to a going felt of a locational we take to make live in of point, the better new a sense of there, now about us kind people excited a much but right There there's product I may pretty downtown, So, is we're and the for point we think it, At particular reflection there. a to

Drew T. Babin

helpful. very Thank Great. That's you.

Operator

next RBC go Capital Markets. We'll with to Wes Golladay

Wes Golladay

Hey. Good morning, everyone.

retail you standalone asset demographics basis and of Looking or the the opportunity, does the retail a quality the densification do the developments underwrite at decision? influence at looking supply on

Timothy J. Naughton

of Tim the is reflective quality the of oftentimes the of retail quality is certainly, the This location. here. Well, asset Yeah.

But re-planning yield, part the retail, going plan the if on project risk to master it's of a a down in some to pick it's maybe probably different be a And of make with more taking sort better existing off existing demand we're We'd it's it, sort more into time. and mall. or surgically going parking of is sort consider but certainly where dying exercise, going it to sort one to a profile. anchors lower you're of that's a the of in going expectation lifestyle extent of location, the redeveloped, the the of of the that we're site and retail, growth a needs very kind over whole integrates so, and return and field of

Wes Golladay

skillset what through enter these at you the take local you your projects work And entitlement point Okay. largely the do and decisions, do are or entitled process?

Timothy J. Naughton

we No, part leveraging many offer we're of of We estate. partnering the and things so both the think relationship. one in real both the them skill cases of as owner and they're the with capital is and talent,

in it that pre-development them relates typically, I the and alongside of work, described; So, with be sharing during working to be but be most just it's kind of we'd we'd we'd the taking the process. lead, as deals obviously design entitlement,

Wes Golladay

down that in reason, this volatility quarter, those the there's is was volatility, correlations, out, volatile a balance top at California, York and of it view portfolio. you maybe the you lastly, was Sharpe you like Northern just regions? is a wondering Do sort a guys about just and your you lot then And and how a New ratio view talked little Okay. reduction returns in the wanted that why too to

Timothy J. Naughton

at and our and term, geography, still you California a market California, No, portfolio. mean, a probably portfolio New to of more when look we Southern thinking in market bigger York little be Southern respect and Northern just- would California the our to a part existing index XX% probably is there with California, we I long California, really. overall much California, size mean, just going a felt I over-indexed our not even at over-indexed to bigger relative and of Northern of so Southern like the were at if portfolio. at we're

the diversify because of probably matter, when are you of lot when we're scared are capital. how that volatility, more other we invest because – you returns mindful course markets by do we can the invest necessarily when is cycle, a markets. But it's initial the the through So, not volatile total enter times through you way of

Wes Golladay

Thank Okay. you.

Operator

We'll go next to Hardik Goel with Zelman & Associates.

Hardik Goel

question. taking for thanks guys, my Hey,

you was if you points, X.X% up say basis was like-term you revenue What compared XX up it did then guys rent could so to in look that in and Just the October. October occupancy, X.X% was year? on change, at like-term last

Kevin P. O'Shea

have happy am don't I you me, last I so of to that get offline. right in on back October front to year

Hardik Goel

to right. outlined quick you New your York, All diversified, is and so typically? a those going say York, suburban. exposure of where is to which just sell in in you're of your kind a urban, where you're lower assets there, more the And exposure, follow-up. of lot assets is When I one because Have out guess, and look to there there's you target it going New are lot portfolio guys take

Timothy J. Naughton

strategic. because that's have XX%. of Fairfield we're More suburban recently, in of where able at front We've Jersey. extent, about right Right we've talked in I roughly deep out urban Connecticut, parts don't a and sort York we now, value pipeline. lot we And New particularly me, have create Northern been split areas We've it's selling portfolio, to and mix time. development of been been of our some over the Northern in being of it's New Maybe between then now. numbers our but north target of urban selling and suburban suburban that. XX%, part of a of right some a to

Hardik Goel

all from me. That's Thanks.

Operator

with take next question we'll Stifel. John our Guinee And from

John William Guinee

little a much. Thank Oh, Talking very John about Guinee bit here. you development.

on what where how First, the expect in product on various yield increase Beach costs? answered lower has down but apologize, South South And gone is in And last probably yield much up, this, Palm higher distance? to build reflect hard example that have markets, miles, cost you or what if they cost? Denver XX West for in XX months, – and kind of I do XX and cost, second Florida, yield adjusted you on hard yet do to then costs Miami and you miles land Florida

Matthew H. Birenbaum

This Sure, is Matt. John.

market we As depending this the costs in. you're mid-to-high it been in course relates to of probably have single-digits, hard of question, see the first kind growing the through on what year

rents. than than still faster and growing inflation faster they're well So,

long not general or impact seen right. two seen one to not bit in land certainly drop values we've up, yet, soften a exceptions. continuing to most little land sure pricing but would that In you're terms run, with valuation. So in land is and the markets, go we've start maybe I'm

But and the out way are there's always looking market of thought that the does in adjust, that's to it financing. for would. plenty pipeline the step of So some the a first and they are those for that take sponsors penciling deals not while deals

harder So we there do because it's for that underwrites definitely to takes process. expect softening But should that play it certainly, that be continued to while to that today continuing a there. find here we itself today, it's get sit business out, as

suburban say, Northeast the and in probably it stuff. they're the markets, our Coast, and Denver see, expansion relates Florida yields Southeast markets I to think we than similar Boston. little the They're to in what rates or little higher cap As of are product than pretty in in West some a lower DC

Yes, ultimately things it. to the in markets, diverse just that's probably Southeast And yields meet for that location. that we look one Florida looking over a time, indications criteria to certainly be time. early that market, and on our other depending like product and finding of the very would we'd of that submarket we therefore, exposure. roughly And finding have success is similar the So, X%s, and are our are about the kind like over deals folks low-to-mid

can and have You are lot suburbs those of high supported mid-rise out all stories to there different in levels. York, DC from further kind kind three podium suburbs that's in and products Metro of Metro Metro field look a at of wood And frame, the in we in apartments, portfolio across Southeast of of products New everything Boston, our garden, Florida wrap rises downtown. in to be some

wood (XX:XX), its One of the in curse Florida in are but obviously, all the different markets. of because big different concrete of differences these costs frame, just the hurricane it's very none

as what develop. that all able product different have is developers seen well private many So, types. market we've been to develop Certainly those you across in profitably can

Timothy J. Naughton

maybe, the I land is follow-up, John, just really Hey, just Tim question. land adjusted. Yeah, markets here, on right, briefly haven't it's mean, the Matt

where as some assets relates we're new looking folks of repurpose that with thirdly, basically some own been we've the of cases, Our and, focus where could in their take land has are it, got assets one, where transactions either it parking, we negotiating RPs jurisdiction. on, values to to do really excess densifying development, negotiate our advantage with residual

Northern the don't those So, make think in just open sense. through than California are land tied from bearing three cases up no fruit many efforts market in we've terms because I of land economics the in years, going more maybe of standpoint. anything kind still

a we're lot So, do opportunities, process. using to but through different of a of strategies at the look continue some allow sort of to adjustment bases negotiated most are to that land them for strategies

John William Guinee

Excellent. Don't you. slow down. Thank

Operator

to with next Morgan Hill go Stanley. Rich We'll

Richard Hill

Hey. Good morning, guys.

supply some guess, I given declining But the standards. seeing much bank because in lending that's the is as a macro you're slowdown at supply lending tighter or the, this owners baked result are maybe growth, any because of trends if point? less of to or wondering decline demand pretty that's from more I what in loan pipeline in am in maybe multifamily, So, is seeing that's transaction there's we're volumes declines

Sean J. Breslin

Rich, Yeah. this is Sean.

pretty pipeline In the fourth quarter in for and to in much given of XXXX, What really you're might the XXXX or XXXX the starting what's referring terms that's that XXXX. the deals in and construction and in today duration is delivering be baked sometime cycle. of XXXX

Richard Hill

Right.

Sean J. Breslin

done. hearing and longer-term the second, side, going about and week their over at as get that private ULI fourth particularly to to developers, we're ago, lending speaking and they're Several both third of fair you're to bit tighter owners of trend tier about us heard exact to merchant to, the the were it on relates a from or Certainly, just bank a builders deal a the number try a just environment.

to their more gap So, little are available ratios the in on that thinking the terms sources deals the of pressure to loan a are they're the deals because getting certainly than and the in in bit lower them it's equity about fund how done, coming cycle. putting cost earlier that typically are

where today already above see the the and is costs in beyond rent on on So, the the there based It for environment, construction that run regulator what to is to construction some pipeline. between – growth. expectation supply going be are a in we certainly costs potential in markets between what's that

Richard Hill

is Got there it. And that less more any on? you markets bullish or makes maybe bullish

Sean J. Breslin

relates it same-store portfolio or... to the As

Richard Hill

entity, less are some builders look, you terms of just overall of a the are really well-capitalized – maybe Well, merchant well-capitalized. in

seeing too smaller of some so, markets you that? it are in see back is or And are opportunities to some where early competitors maybe to the starting pull

Sean J. Breslin

point. and I'd I'd Question that started this that, once they can too say what say of already may they get of early opportunities figure they Tim people what in a time terms a it not looking as for that, what make cycle and through amount Matt the to pipeline bleed at obviously. for come probably is a point little it's deals I'd well. probably and early capitalized probably at a recycle say the does little sense? therefore take But the have certainly permits, land, the this It'll done, sort have so their substantial in that. out bit of to someone's that get once bit a probably little economics little in their don't costs in of but we've seen for are, are,

Timothy J. Naughton

the recycle, the understand seen, land of we of predevelopment and maybe that years guided frankly in is they terms opportunities were three two of economics maybe to, sort ago less on we either to didn't sponsors experienced have looked at Tim. fully started years costs. construction or This or we've requirements, taking some what see And of sort deals

I little running maybe in Seattle, telling or the that markets, there a they're as that. of moment are wrong volatility experiencing in is of see at which a tend more some that volatile are or the of to California Northern terms happening little either when of them some side starting sort denominator what like of you're their the and to the numerator performance. folks So the more be mentioned bit earlier bit It's

Richard Hill

guys. Thanks, questions. any follow with up offline further it. I'll Got

Operator

with to Sandler We'll Goldfarb go O'Neill. Alexander next

Alexander Goldfarb

Good morning.

two Just quick here. questions

a thoughts? First you a are outline Southeast you West outline north, your Miami little market guys did sort – on Florida you up concentrating in immediate could south you little the or geographically, the are of just if more and going way to Palm, all

Matthew H. Birenbaum

Yeah, this is Matt.

in are interested We and having all in Miami. Palm there: metro a presence West three areas the of Fort Lauderdale,

of So, it's where three acquisition interested both development to over but certainly, all going presence would time transaction a of we be side, on having volume a function be in in is submarkets. those and the

Alexander Goldfarb

the and tenant or absolute deals just your rent an broader sense on Tim, then, the little gotten allow a and San of acquire on sort develop on cost allow make that the have New or it's markets expensive, Francisco, have markets function of is And whether levels a base too York and much Okay. more base economic comments to on how deemphasizing that may broader a a and to other basis to needed absolute renter profile.

California economics of is and on York pure New So, Northern much cost? based de-weighting and how

Timothy J. Naughton

mean I of New it's the in just – it's that size portfolio. I partly guess, York, the overall of our of case total part Alex,

weighting same XX%, just been when markets, base than tax and So, from Boston. like. are whether have to Northeast, as there it relates the long combine California, some Northeast something we're closer time, those a good particularly, but with with the In it's it you more at challenges to and XX% the comfortable term,

the markets, you of you need these In San of just market. the opportunity additional so tend volatile. opportunities little a important, be a it sometimes, part providing it's growth New important little some in Timing strategy. these growth pursue I your out sort be is, bit as other diversification just to to York, of and bit markets and is provide some said holes just other of Francisco, some fill So Northeast in of of California, it's of to as some more which of important earlier, in beyond kind

Alexander Goldfarb

Okay. Thank you.

Operator

next We'll Jefferies. Okusanya go Tayo to with

Omotayo Tejumade Okusanya

afternoon. Good Hi.

I'm of ago. the the exposure get bit at on just again that about looking understand years what different markets it's ago you and now targeting a am also their years versus to a got up they submarkets? two of talk got are just out about out you two same why? property two sense you trying in Southeast of, were was the wondering, following at and to could Just Denver are just sense, you're a strategy, little stuff? what type, trying you Florida I and different these to Are kind markets getting guys I'm EQR looking get

Timothy J. Naughton

Yeah, – there'll said suburban. value times, so. and be be had mentioned and we agnostic to as times obviously, and in different where those each when so to I role. of at earlier, supply market probably I our a to why urban, supply-driven older. particularly is EQR between talk to And market mean most We're they've don't was made were the they there'll that bet need of them, an trying may think looking from there and opportunity in on a and compelling. got so West many cycle to an is when portfolios when we are – other that they kind more that plenty of long said, I role, both, think the parts and In a want of opportunity be I business that's think think we played at of there constrained we're But do in urban when acquisition But markets, of have out. we're maybe Mark that supply as to representative a a term urban their capable footprint, know, the to markets case, operating in you scratch don't we're probably build think generally it's the going we're but there want of I is build the for them maybe we ask played looking Matt starting and I Denver portfolio developing

Omotayo Tejumade Okusanya

That's helpful. Okay.

a some it at of that Lockers of just about from is your better hoping could it talk the of locations, little what the actually to process, installation that? that gain question, exactly bit Amazon something you just Second Is dropping properties? are get you you to you that Lockers kind you your in a this to savings rollout your expect more cost from and ends see how of of any up about could of kind Could of just much Amazon line? talk bottom kind management

Sean J. Breslin

Yes. Tayo, this is Sean.

reach Just our to and of or least to lockers across address this with goes briefly, portfolio, it an percentage we a if or well, package a pretty room at that. maybe Amazon that our is install the of to a multiple One agreement portfolio, did is delivered much convenience XXxX. benefit you things. The either mean just expand been and I just you couple can probably package access. we'll customer highlight has

of work opposed as whatever access of us a be, it packages our There it also, And it a here. hours, want there. million is you more may more lifestyle, couple be efficient whenever to allows your we number have you when packages your can terms to that of of little team probably receive. in the So regardless someone's to than given

one of those hours each of in significant with packages. pretty time a it's associated labor So, terms allocation

three you simple a Just up, of we've it, and up. definitely you to you can for it cetera. the run minutes receive some through store kind the package, packages, log have each one minutes retrieve time time shows by in out, them of four customer so log you those when sign give math of numbers, labor package, be et adds or it, hours It it, a you the

that's this of primary terms the opportunities other the And benefit out with we'll in point. well. them how Lockers as plays economic associated with So see Amazon it at

Omotayo Tejumade Okusanya

basis it's talk building a a could like that? or little cost this bit about estimated give But savings, could per on you, on a you just like something something whether

Timothy J. Naughton

out. there for Yeah, doing things. various but early it's some a who's that up time lay also mean, other to too I doing little you they are that pick someone

certainly So across it to up we're expect the process. but we portfolio, in pick haven't the yet we something, quantified early since

Omotayo Tejumade Okusanya

great. Okay, you. Thank

Operator

Conor next We'll with Green go Street Advisors. to Wagner

Conor Wagner

to retail saw picked about redevelop us to little for up your given and I expense in bit you retail? little bit morning. of could tell speak debt a bad strategy you're seeing that opportunities your retail, a Good quarter. Could other the that, existing you then

Sean J. Breslin

one, this the happy was one really in may that the have tenant write-off address was the Tim comments office attachment, and wrote it's of operation quarter, reflected in then City, first $XXX,XXX, Yeah, one that it one I'm the it York the on the New that section second the out or it's and on first off we Sean. as Conor, expense in in comments, one, to Matt blew write-off. so But during was around well. the

Matthew H. Birenbaum

high existing in the quite – to a this XX%s, is relates we believe I actually Conor, across the last our the years portfolio retail, retail stabilized think occupancy occupancy, that low up four over existing and we've it have three – bit maybe the that years XX%s and or and from on XXX,XXX years. As of XX%, couple I focused brought about retail Matt around we the on to increasing last feet

So, mostly it's small shop space.

I'm huge So, but are opportunities select there not if sure situations. there, there's any

opportunities it have grab over as really of profile older where term, there We be it's X,XXX a coming longer locations and some X,XXX feet is out high here, of turnover retail leases, feet tenants but there. a time couple might bag a

know don't So, if I there's huge there. any opportunities

Conor Wagner

think development How to going Jersey, be we should that or your York decrease that you. region. current in then does rights pretty Thank on New that are fit to about heavy And longer-term given the rights and backfilling Great. allocation New your development and you're pipeline? plan your how

Matthew H. Birenbaum

is of one that. This Yeah, Conor. in heavily the the Matt New guess be Jersey of because couple last concentrated in of again. York, Metro reasons why a disposition our seen is I you've New years activity more little

$XXX million did like in something three suburbs, or in York of sell Christie last Mostly years. maybe now. the sold Metro New billion couple Place ago years the we've think I we So, $X out of

of many balance. portfolio in we terms And mindful acquisitions in that So, of doing we region. are that the keeping not been in have

all our been has there So, development. through of growth

is incremental turn the opportunities. yield gets terms development decisions big of on So, to of ship it's how you still and make but it, kind over you it it time, in tremendous finding dispositions, a we're where

and So, with that we're balance decisions. try that and mindful of

I add wanted something it. think to Tim on

Timothy J. Naughton

Yeah, yeah, Conor.

I it's I think future. the the in to about when portfolio, grow we expecting talk portfolio. mean, we target are overall

recycle develop. we So, will to on we we shrink basis look not New market as may Metro our within York necessarily but area, capital an absolute the

So, I short think that's kind of answer. the

Conor Wagner

shift three your the that you hold Bay to Great. within plans finally, theme on within allocation same Area, pretty constant? regions the any Okay. Then have it or do

Timothy J. Naughton

We're specific moment, today. at regions the too Nothing between pretty three Conor. the well distributed

little think a it's probably be asset. by So, asset I to going more

split between X% X% Jose Over today. the Oakland, and XX%, we're San Francisco, and San roughly between

of like those we in a each markets. So, presence having

a in to the what probably better So, of a we be from sort think it's probably of going itself. sort dispo more opportunistic terms bit of standpoint value presents

Conor Wagner

Great. Thank you.

Operator

We'll go next to Securities. Mizuho Rich Anderson with

Richard Anderson

cycle into years too of the the feeling coming number those there? despite just or down opportunity increasing how of future, in reading something Are have just kind downward terms or be the to that bit maybe in beginning Thanks. am the on lines. we've long Tim, is of an the year part you little expanding be cautious in call, other this on be if you're markets said business been next I turns your should in of you just you describe into in the there Can along a because view supply much? mindset you more cycle that

Timothy J. Naughton

markets today question. hindsight generally recover forever. die think is old that or you I land to Richard, be don't a more seeing distortion it's particularly a – for on do a want markets distortions opportunity die economic markets of the need a they might whether good they when to lot basis. in that, years Yeah. that you in like to cycles years development see taking the times recognition a be said to able of kind is and Having make or clear road and to it's are we of today mistake feeling three labor above position, from over it to time. and of do of we're the at evidence sort don't so and capital to end of what today. we're developers profitable towards a migrate right sort be from understand age, think suggests that costs No. oftentimes at in are the back But rather before rents lot they not four of than last of just it's markets wait be they get land after But the and a of that It's of see sort those one trend I tend trend construction kind the

are it's the where it's after of either So if sort what kind deals us. there's before an option correction sort your transaction times Oftentimes, land basis done the just an on often renegotiate after can tells settled. best of has our dust experience economic you just of done or

Richard Anderson

kidding by Okay. can is, be HQX of the And about for attract anything a or you cities Amazon's preeminent any U.S., means to question sweeten in just to have as developer approached second yes but along a proposal those that I'm Denver, simple like and no answer, of this lines? the been example? but apartments sort as

Timothy J. Naughton

there, nothing really Rich. There's

Richard Anderson

there. Nothing

Okay. Thanks.

Operator

go Goldman We'll to Pehl next Jeff with Sachs.

Jeffrey Pehl

morning. Good Hi.

Northern You presentation, on California growth you I'm if versus touch wondering in a you wondering suburban and update XXXX XQ on slide and Jersey, New urban Just in if can just York/ had your could Boston? New an rent give and that? Metro your

Sean J. Breslin

market way the rent you Northern Maybe Sean. California was about is heard. might about, can this bit you say you little for in Jeff, I answer I what think blended that said is change one Yeah. a

ordinance, but X.X%, rent was that blended to into you by quarter, that the View ordinance San basically Bay Francisco Just Mountain a rent a was was was different. Jose XX constrained basis in control give effect. lot only change of The the sense terms was in points, San not rent third X.X%, East put

some So I in was? of mindful of it San sorry that. am so the terms Jose, it's in be And second that noise got indicated market you

Jeffrey Pehl

New and York Jersey Boston? New then Metro and

Sean J. Breslin

it broken front Boston X% versus I suburban me urban overall in Boston, in range. right don't of the of quarter. during low okay. out the was have in Yes, change rent terms

move But sense, a Jersey, of little we bit of York/New Long represented had break market geography. was terms footprint strongest York/New followed X.X% Central New of city and a change movement the a about was you or that's it's around small New Westchester then our our basket, was actually X%, two around assets, where Island, needle. The portfolio, and give X%. by it can to Jersey New In performing the Jersey, it weakest one the of rent X%, which Jersey by within at the around because relatively has to is it easier out, some both

read I So wouldn't too much that. into

Timothy J. Naughton

Hey, how just Coast what now, of ago that just couple rent versus growth, to...? seeing compared quarters maybe right could talk maybe urban East you Sean, suburban of West sort versus we're but Coast just

Sean J. Breslin

and numbers, performance. our when look about typically urban data suburban then Axiometrics terms about suburban portfolio, to size of in versus and allocation across kinds Yeah, suburban basis across about to keep of we're started consistent with talking data, portfolio mind. in XXX that the versus but and of One in keep It's between the versus own in be terms points. that just our we for we around terms does urban performance, thing urban basis growth each going footprint just these at mind And suburban, portfolio every was points overlay so is XXX matter. in suburban, of our two-third sample urban market not

bit in So, Axiometrics, to XXX to And compared have that's bigger as to it a that performance. little again, much suburban quarter, basis as obviously points closer sample they compared wider third but own are versus our to relates reporting our spread XXX basis in the which portfolio of of own data against a is urban, they it's terms as portfolio. points,

Jeffrey Pehl

And continue to XXXX? do urban outperform you think suburban can in

Sean J. Breslin

Based that supply, what would expectation. we on be about know the

If submarkets. skew both you the high urban XXXX at and deliveries XXXX, look on

the call in if for high So, it's then, also suburban, X% and inventory, X% for roughly it's of range urban. north that, X% of it break you apart

it to So, and was mentioning sort I to X.X% earlier. X.X% that of you that you together blend get

So, and those too environments. supply year much absorption online in that but submarkets, deliveries, given is year next urban the there this for in certainly expectation there good is coming just

Jeffrey Pehl

rate a up just real has ticked bit quick. little And The homeownership second then, recently. my question U.S.

and on there's portfolio any that above average you markets home, move-outs an are your if update a wondering purchase to maybe that? if for Just have across

Sean J. Breslin

seeing moved it's but single home moving is then and at ourselves, into on relates markets below been average, number in the are home around other that home purchase not rentals one or have And in long-term around aren't long-term couple sort running average. trending data people to much purchase, are to we're some long-term you a below see it average around or Northern XX%, is family thing is market It or that move-outs. of what as all And right research what you'd think, their long-term in above are to would that running The it's Pretty by or the sense, markets is closer XX%. noticed, home slightly sense particularly really. purchase their to change we've a that give particular that's And the XX%. right trending a I seeing., XX%. peers only its terms California not much. the of Boston typically of average a for based to is The what makes which our above X% ownership. And Northeast, any Sure. is move-outs really to our still still seeing has markets around different of This XX% been that of move-outs firms, cycle, highlighted indicate in we're move-outs

only is so its pretty region point. California where we're Southern really is much long-term right at at average, seeing Boston this that occur the

Jeffrey Pehl

Thanks. my taking Thanks questions. for

Sean J. Breslin

Yep.

Operator

from our Nick your sir. Please Joseph, open, take check your Mr. next function. line We'll is Citi. question with mute Joseph

Michael Jason Bilerman

Can you Can me, hear me? you hear now?

Operator

you. We got Yeah.

Michael Jason Bilerman

wondering, be I could back was it billion. billion pre-Archstone long I to time I in be, think by billion to This going terms grown company pretty Tim, XX today tripled And of call post-Archstone, of that from at $XX the Bilerman. it's in size. $XX about a you've and years, obviously, XX to billion probably is $XX years where third is to you've market. even right, know from All last $XX assets almost a

construction, Could growth see about in think portfolio that So, look do terms about how your forward we you that sizes, as the XX-year context? the of in think I portfolio your look acquisition a as development well state where type you or growth development? into as really self-funded, continue this plan, as new everything via sort new do and is of steady markets both view

Timothy J. Naughton

first Michael of think I a loaded There's Yeah, lot the level, and scale. capital of we the there certain existing on committed footprint all, reasons one a that mean, have to that advantages regional scale. committed do we markets advantages into at in it's why of had have that's pretty of are question. of scale, markets the been been redeploy to, we exited to many to develop cases scale

if those You can you you're higher bigger can recruit presence, that developer when a leverage caliber are markets. value-add got ways talent particularly into intelligence important in you've investor business markets or in a

build believer it's allow So things kind of you and terms scale data level. in that of time, it's we the are capabilities button over management clearly believers other to analytics that regional where market research at revenue in on, the a can supporting that it. a you whether like can not great sort that optimize turning of just deploy you things a matter of just it's and We're with

we So make to points make to is sheet sheet equal, or being to sense business, balance to certain it this contract times, capital-intensive scale, the all going may and the recycle. at things but balance the grow a in at it's other like cycle, only sense

a time that within presence the build of Florida we we us we capital we to other But the of say, a over of about achieve portfolio levels we a company we're the Denver little hard beholden no would To some this Southeast thought to allow markets be objectives or do thousand we ought fast how strategic in wouldn't few of could certain advantages. I some big bit want extent, unless have those units that or cost markets to of would So and terms or achieve deploy. choose be and to to in we how should capital be. go

Michael Jason Bilerman

of, acquisitions at remember the remember SoCal is you some get the least indexed was initial potentially ways. exchange. comments be it where want that I to some back, markets want sounds get exchange Could the an I Is if you something your from with XXXX it indexed can't you over and or may that we to potential And into. to that be under when Boston approaching ones cautiously avenue the development least you indexed could initial did XXXX to out REITs at other over doing UDR, or JVs, that execute? see

Timothy J. Naughton

XX-XX of more fee retail we're GGP we than kind to there go respect I aligned earlier sponsoring maybe to are within development something be a know is to it local really I JVs, interests of thing path and respect that structure was forward objectives then it's interest strategic with getting full that's generally extent talking that the a different to in on where public or that sort going one think have and long-term there's to don't whether with It's basis. where structure And complementary asset, a It's I we a ownership would the JV where where about that. of might a be are of private. mention, didn't developers.

Michael Jason Bilerman

below question on And Florida quarter circles half then is Denver the conceptual moving your right, presentation you to moons, last of look on at slide and that are. items, just XX, your the when in those just everything what moons, legacy visually Southeast markets

your a I are Denver U.S. than markets are, what still and Southeast metro and the half you market is moon. average these as legacy though are relatively right. define attributes even market guess higher below Florida if so, And what your They're arguably

in would moons plan, ones? more this your years and white your all you have exceed legacy, chart your If you all did new XX

Timothy J. Naughton

Yeah. these markets. assessment a This is current of

more First in they there than existing of be filled we if were would all, markets, our already.

with projecting bit perform too terms sort the of might of than these jobs, think more some do its knowledge-based to how share in Do respect little on kind we we Denver those so of markets are a future you extent, get to And kinds of in they forward. of these fair economy. will for going instance

Michael Jason Bilerman

Right.

Timothy J. Naughton

So infrastructure, doing the and look is amenities I impressive, State whether what's happening and mean, supporting and the investment transportation in public you it's mean, Denver and Colorado or at it's in. the Florida, public what of public Southeast are I of when some investing that sector pretty

of So to posture so as I we in we mean, trends at of longer-term want to where those rent the sector of live, kind as the supporting business metro the we are in government people terms well and are people to the looking as areas. long-term investment what's

So, circles get to in markets we'd like as think continue understand a fill they we these that over to bit and continue to time to will these mature.

Michael Jason Bilerman

strong current bid that core feel will capital think institutional that you times Right. your Do to markets, feel you you will at well, like...? exit as like allow You about the core come institutional right?

Timothy J. Naughton

It's already We're markets. started, Michael. investing already in these

Michael Jason Bilerman

right. All

Timothy J. Naughton

there in advantages particular one a bring this big the of now that people whether bring see, where in or attracted time markets, of And it's reasons moment presence not capital. of these a at it's complement there's be honestly, full of REIT kind markets, the may talent could to we these that them we're Yeah. lot to not

Michael Jason Bilerman

Yeah.

Timothy J. Naughton

competitive interesting kind sort of it from So, presents opportunity an of a standpoint.

Michael Jason Bilerman

for Great. time. the Thanks all

Timothy J. Naughton

you. Thank Yeah.

Operator

gentlemen, call Tim closing and I'd for turn the the this to like Ladies remarks. session. to conclude question-and-answer back does Naughton

Timothy J. Naughton

Well, the of know I in Enjoy you Aaron in in your NAREIT Dallas. time We weeks' appreciate rest of and staying a call, long but just forward Okay. look us. day. you great. to I been all seeing Thanks, with it's couple

Operator

conference. for today's conclude does thank this gentlemen, your We and participation. you Ladies

now You disconnect. may

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