AVB - Earnings call transcript Q3 2018 | AvalonBay Communities, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the AvalonBay Communities Third Quarter 2018 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, Vice President of Investors Relations. Mr. your begin may you conference. Reilley,

Jason Reilley

and Thank quarter AvalonBay third to earnings you, conference Brandon, 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 This 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

Great. welcome to call. QX Thanks, Jason, and the

Joining and for I Matt will we all available O'Shea, us last on commentary afterwards. night Birenbaum. Sean slides posted the of Breslin me provide management and and will be Matt then Kevin Q&A today are that

were growth which QX results Columbus quarter, of $X.XX investment mixed-use on slide and our quarter focus a the X, comments outlook. morning quarter. active above portfolio core review include the And a share on and our current very this we performance, of now this of apartment was Our past development. highlights will their portfolio an economic Starting on X.X%, fundamentals, we'll activity summary for of and share progress FFO Circle providing of finally, the the overview impact per where on midpoint management some for our the

midpoint the The unchanged growth revenue outlook. the the the X.X% from our midpoint XXXX at range for for to updated per $X.XX $X came revenues, increased outlook we've quarter. expenses growth was and mid-year same-store remain share. full-year of NOI NOI, Same-store same-store our performance, by that in note You'll X.X% of and

$XXX ranges end basket You'll assuming excludes year the additional New provide note, however, of the development at average we yield a JV did expected. closes projected the York the X.X% initial for new that million million X.X% to completed We a in assets, year. as quarter and yield revised an that prior of completed now the for deal projected have at $XXX same-store for

the million just of communities QX. We million also $XXX rate And one community of over at average an two external capital started sale new through in $XXX under totaling of we raised lastly, X.X%. just cap

slide fundamentals, now to X an through I'll this just quickly. and overview of Turning go

very the As surging cycle, of and digits, the corporate is markets. all equity household pullback double the wealth currently around the with you seen of far by know, healthy running profits growth reaching we've before recent tightest X.X%, the in economy record GDP highs one markets labor so the U.S. recently this

sentiment is the economy the both of consumer formation, levels market over and the household into good Strong being translating next business the Turning in by economy the few housing sector to the business for investment and X, slide quarters. are increased consumer. capital signs is of and which driven both

solid and that macro tightening. tensions, rates Fed continued interest trade in most are potential and the have including are a wars, threat over operate to up, worth these of there overall, quarters. the it some geopolitical pointing risks appears of the While environment normalization which other are leading next watching, indicators we'll still But, rising few through

growth is with of housing the for young-adult drivers as running decent up, fundamentals, cyclical or which demand growth, wage in drivers These XXXX. by age job is are high; turning reaching affordability cyclical are five showing this including to renewed strength peak X, years further slide again; rental turn those demographics and cohort, Turning a all favorable several which actually the apartment positive signs a environment next not of above supported macro X% demand. experience projected all young-adult growth to apartment until and low; for under trends hitting XX, supporting is

the X Turning as declining now see to both of equation. have been supply and most It the early slide in beginning in in markets side the for we're permits supply, signs some starts to year. of of appears our relief

to two that market. markets XXXX. In seems a in public the apartment points the as the due nationally. quarters, adjusted over back that permits to down fact, the talking over to is reason by prior are stands an cost deals depending that have development and year, markets year, probably underway quarters. double-digit the sector's range on on in to have the generally reaching This over a REIT new our and growth the on extent XX% year, would Bay it's last XX growth. to last basis, on basis been investment, by rent since basis With upon inflation development XX in in and we've starts then some so two Area last seasonally points deteriorated over pullback XX% begin It some construction the be occurring roughly cut year-end mostly impact and this seen We've high-single-digit the like to the even by yields to about prospective also X% over projected with last averaging averaging been regions X%

we can the chart. to see remain recent so, the in quarters XXXX this be you as the felt earliest, XXXX the or right or pullback start lower won't in as in really box activity deliveries over next of four this deliveries elevated course, Of new terms late in XXXX expect in and at until

our you for same-store change expect, four-quarter starting Turning happening. to portfolio. chart portfolio now This indeed, fundamentals And to performance. this moving slide are like-term into depicts X, as improving translate might in stronger demand is average the rent

basis a than – driven to average you – this rent by of Similarly, same-store As or see, growth QX and has basis QX of XX range. last basis XX improvement X%, up basis the QX X.X% for QX of the growth has which Coast XX, in California is in saw growth or the with QX to was in XXX was points portfolio moving slide higher the XX greater year. regions stronger saw turn our in the rent regions higher improvement posted solid the points X.X% rent good improvement year same QX change QX, which at started basis points points bounce started XXX same-store can of than again, East and for And Northern four-quarter with XXXX potential All three to saw than to than quarters biggest turn quarter. turning last average year. most points growth last portfolio. up of of rent

prior in largely California and These of significant with rent rents deceleration Southern regions, the into continued of like-term from year. modest X% portfolio growth at October. QX about more up Seattle average trends however, the those was still both X.X%. QX have deceleration saw in or above by

turn to the addition, past East management will over range, in X.X% growth with in another roughly quarter. Matt? now first the region for since time West the and Matt, I'll currently In with activities investment every discuss who it line XXXX. is performing and and to one X% rent broad-based portfolio

Matthew H. Birenbaum

All Tim. right. Thanks,

our current development to activity. first Turning

XX, to slide roughly our value X.X% have with on see can deliver underwriting same very our initial estimated meet yields compared of completions creation rates for and you this X.X%. of those to continued year healthy As cap assets

contributing as development earnings In expected, generating to is portfolio our NOI right XXXX addition, lease-up our with in line initial guidance. in

the our development delivered which year. which at neighborhood product Dogpatch, Francisco remarkable we completion a wood compelling This positioned Area. Bay the result turn largest offers San mainly that quarter an emerging very completed was Avalon is frame a yield, uniquely of its contributes community X.X% high-rise to basis, in This in of for

we costs This a an at to us track cases a increasing is record XX, long-term as due of is cost we start own with most in industry. base our acting the important to project. trade new particularly accordance have of having delivering Turning our contractor our in in the given and large communities budgets. locked This our in new time part slide majority initial general in excellent

inflation running acute well West issue ahead the of the rent indicated, markets a particularly increases, tech is construction on in Tim Coast. As

of in This construction projects, Bay quarter, Creek. These currently total we did result approximately Emeryville XX% recognize the two union were Walnut exceptions and those projects the performance on cost two increases under East across and on our to communities, These $XX actual portfolio, execution. the pressures or even wood estimate of two tracking the of within two which are for the excellent X.X% increases, including frame original collectively overall our development original unexpected million in budget current trend to as issues. costs projects these slide. And construction continues budget subcontractor are reflect our shown which general

sector-leading to so to Turning the value $XXX billion currently development underway. our approximately far in and slide creation this expected platform $X provide excellent cycle million risk-adjusted XX, from returns development continues another with

consistent as right. as may the upper highly are with will record cost continue mentioned, the markets be left. track shown activity less cycle to While we pressures accretive, still our the manage our we by to new be due lower in risk returns starts capital in the early development than profitable match-funding chart in just confident deals long-term And that shown

year. productive to transactions our has a had Turning XX, slide team

on activity NSA high-rise communities Fort been in the Baltimore-Washington community garden table complete primarily on we side rotate of our to development of and in garden executed downtown including markets at and Meade. Florida, strategy BWI area, Denver properties a Airport track acquisition of and the in through as acquisition both are slide. our West funding to of shown the the on just expansion before the the opportunistically We've Corridor the left-hand year-end, As in Palm the Southeast market, north our transaction into Beach suburban two capital Denver we the and four headquarters

activity. in of to year, provide an announced selling cost-effective on us basis. of little We our we external XX% more wholly-owned JV a roughly $XXX XX, detail out have capital a transaction, billion $XXX over are after bit as interest million as month leaves five we course Manhattan the sellers To properties million slide on assets acquisitions net planned stabilized will netting this $XXX in in fund investment as gross at during and on $X.X by year-end, valued shown million earlier sold which the providing the

the York years, higher and region higher is we bit to New allocation for even the in otherwise our indicated like imbalance trending pipeline to would due a would the development than we we've the region. have be Greater several As past this

short-term assets, to share property is this assets low-X% the earnings our reduces city, the suburban properties the expirations not sold on lease structure is and which to itself resets. This abatements on York provide ground our highly unlevered assets all including various to the in (XX:XX) York But Consequently, have that participants. Greater roughly four until a range. two market $XXX due on is but yield tax yield and/or a of region, portfolio, the about our cash of flow total be that brand now. their New the suburbs, of the the region a within defined New sold This transaction roughly transaction target valued or presence yield Island there boost our five wholly-owned while by basis XX%, considered and on might rebalances billion after cap We further assets City XX. from The each NOI have drop Jersey adjusting any long-term note earnings investment years, Westchester. New Long presence allocation important preserving term be $X.X on XX%. XX% will between to allocation seen and closer factors. the material million can in impact in our return New is slide our rate last suburban while New to JV cap the Metro the York York as of It over for points than in the transaction is the and among short-term York XXX are is normalized our these what these to portfolio to and higher New assets until in the most of difference initial a rate

like space is Broadway and prime I'd feet provide XX,XXX update units, includes asset residential our retail next Columbus XXX Circle XX, development. for completion on year. track slide square to approximately Moving an on on of to and This

slide this Turning retail progress the first leasing the to component to-date. project, of shows our

have pleased are executed entrance We we the that floors and Broadway to to two a lease XX,XXX-square-foot report a below-grade Target. for on main

both well. These initial half or at by and better under by XX% in leased second floor space at lease to just tenants economics than will In addition, leased footage we us two revenue, are negotiations XX% of to advanced as underwriting. are the and square bring our

tenants We expect over early for work in both spaces TI to XXXX. to these turn

currently this tax project, condominium absolutely the would condominiums. AAA to From profile. As from abatements, exploring provides apartments that flexibility the a for-sale been most the to residential component, one aspects we zoning of beginning, affordable shift of are component apart no better offer has a it location, impede or appealing with a its the from if restrictions, return rental strategy it

the indicated While the advantages shown somewhat in our of left Manhattan of slide. over lower building as condo softened the some as compelling XX, corner market year, the the has offers side slide last upper-right-hand in

building, rental a product allows offering, on of unit would for lower square market. size the X,XXX on pricing the turn than in for be most for side other whole-dollar actually average feet, Our which while new Manhattan condominium large smaller a roughly

Manhattan more the suggests less proceeding result, the $X and which finishes analysis to building, establish modest is additional this value the to have million there balconies to than but projected units the would for a year, by proceeding average to a extreme cost under execution. still current be before million our variety greater and require at open a would priced a in at we capital sales could which an the than than level deep the rarity even million (XX:XX) greater roughly detail, some scenario pre-tax through X%. in a and we are decide that with regime maximize we economic the facing condo of providing pricing, market increase between total in be Broadway If As of location such condo averaging buyers. settlement. on April or more our value our we To other which of outdoor either frontages, $XXX million address. unit in space, not upgrades believe on home. optionality, wide studying would the would value and the pricing X-foot $X.X building, the March next prime potential depending target in expected the our homes have in private with option space XX% included unit for outdoor We're size, per price size And $X.X below points The the execution, finalizing proceed threshold contracts with XX% sales first condo minimum of we of will initial

progress will Of our this course, continue on and turn thinking as we With apprised to Tim. evolves. back to our you it it I'll keep of that,

Timothy J. Naughton

Matt. Thanks,

Matt is markets, so terms as change of although in So, generally apartment improving two regions, experiencing a performance, cost yield most mentioned. the fundamentals healthy over Development in some summary, QX. economy in rent our and we lease-up supporting certain quarters in and stronger market with challenges far same-store in are expectations last U.S. tracking activities of

our evaluating where execution of we're We And Circle as joint the solid retail through component. just to that management the thinking on opportunity in over really mentioned, mixed-use as lastly, activity certainly and condo residential we our portfolio Columbus also And venture couple explore next we'll continue further this development quarters. with in share continue we're at our to objectives making market. make the progress transaction leasing Matt strides on a

with So, open happy that, be questions. Brandon, the for to call we'll

Operator

Thank you.

Nick with Please go will question from Citi. come The first question. Joseph your ahead with

Nicholas Joseph

do a Columbus versus On decision condo final Thanks. rental? need to when Circle, you on execution make

Timothy J. Naughton

timeline Nick through why don't of Matt, walk the there? kind Yeah. you

Matthew H. Birenbaum

Yeah. Sure.

prospect And onsite open feeling the we're would shortly if in So, some to pre-marketing we're it, with Nick, what building just center we we or next sales list. comfortable start month that then, two, a a start would thinking in is early March. probably

is things offer have of that don't we to the have other we One to actually most the condos would show. new that product

reach March, complete different and sales show. before We goes. thinking XX%, that, kind threshold that we settlement. would think two minimum And we that would be might April, a as to by we threshold, we're see unit provide of it we establish open But condo would go. that how which months, to on just So product white-glove-ready floor pre-sales were XX%, after and XX%, have under going we want we'd then we we be internally were, – it have wouldn't in it of types so a record until have actually with or then four schedule, that to tower want, the March we contract locked-in. in whatever would kind units on it start not from before how April. And that open But percentage actually would of do we anywhere the if if whatever would to four we take depending we'll

optionality we the up all until So would have way that point.

Timothy J. Naughton

maybe just to the so. four costs potentially would Matt lease-up a lost seeing that be execution obvious, probably three mentioned, two revenue get, or it's some kind but Yeah, months as Nick. that over to And the add the would traction that, opportunity to condo of we're

Nicholas Joseph

sense. for And underwrite of what do terms in total you back timing year, settlements in, do if Makes the begin sell-out? next a in of half

Matthew H. Birenbaum

point that's this extent, out I our where there of of that tactics into to we're and to yet we want a and gets that. for don't some a strategy. going really some function pricing think point at throw be at To target a

Nicholas Joseph

plans sell are will And it's what and owning the retail we've the operating or on to finally, once And you longer-term are longer-term? leased seen, given the comfortable for the it you Thanks. just, retail? progress made look

Matthew H. Birenbaum

Hey, again. It's Matt Nick. Yeah.

space in two, Hopefully, retail there'll NOI may year But the I on around get look think of and the at large turn well like that's then good the or that execution we and time. to to because place. sell in a ahead be and our a to we'll see then we'll not decide obviously that, years what we go complete core up, feels it But asset to it expect and see. stream that and couple in would is lease-up we'll of probably and it next retail maximum kind business. of lease

Nicholas Joseph

Thanks.

Operator

Hightower for your ISI. question ahead Thank Please next question. The with Rich come will you with go from question. the Evercore

Rich Allen Hightower

process how Maybe Good of to Target Circle is just the us quickly everybody. market what question that retail then and the competitive morning, leasing follow-up down Can there. just the being you a for Columbus also Hey. space currently give took on sense there? to the was offered

Matthew H. Birenbaum

Matt. can Sure, bit Rich. that little different different I categories It's kinds from There's a lot speak of a all and lot again. to a been of space. of for interest

We priced very different have three spaces.

We subgrade frontage have we we space. space, ground-level then the and Broadway second have the space, floor the have

the So, bit second spoken is floor of floor Target and for entry the subgrade at all entry a space, point, little the floor this second tenant for. half the of for about ground the for just the and

still floor than different it's So, to a probably so the kind we're would see floor. and the available, of what more left XX% continue Obviously, different tenants. half they're we categories little – ground with, levels, it's different of be are those And second of rent of users.

the We've that amount space traction interest and interest most generate expensive space – the Target there. for The second wide to we've from is the get pretty of the tenant more would anchor set thought had reasonable variety probably of the and floor. was first took. ground we So tenants needed the good that a on had space floor a space

lease. We space that to be but always are probably the talking last to to expected we folks,

kind sits where not today. we're that of surprised So with

Rich Allen Hightower

assets there. the us impact my the Can the on for help rough results appreciate same-store City earnings in same-store what I would I on the be JV XXXX. you And question, excluded impact surrounding detail from Thanks in portfolio guess, New for understand, York right. those then All from color the portfolio? XXXX terms release second the being

Sean J. Breslin

execution the would be those the JV, whether assets Rich, same-store. we extent of complete that the Sean. to or removed it's Yeah. is December this And from January,

previously led removed the in of Park the not the of calendar JV the that's same-store there lease issues a guidance a relate for two then, the million. December, both terms is se. The And for of acquired; periods another to we there the of write-off closing It that's Morningside for for calculation we as of XXXX the that is about would roughly issues. third So that both One change year. be an leased and question. the same-store to last be potential year result specific that of quarter fee the XXXX that would $XXX,XXX if retail impact last to per $X.X from XXXX, disclosed on your ground relates metrics specific in

on same-store a obviously So to there those results, NOI. operating XXXX tailwind as relates an the expenses, on it are and particularly was impact

without was to it performance basically York same-store why changing by on the composition with JV impact that's New the would of the bucket indicate be the So, necessary the and what assets.

Rich Allen Hightower

I Yeah. guess...

Timothy J. Naughton

But just...

Rich Allen Hightower

ahead. go Oh,

Sorry.

Timothy J. Naughton

Aside those same-store. factors, impact was two the negligible overall from to the

Sean J. Breslin

the where same-store much terms Yeah. except we all New of metrics, impact We're thought be of for transaction. pretty tracking York we'd in the the

Rich Allen Hightower

would just across the And guess for without of we helps be, guess the pool change the the of obviously be to Yeah. will year. clear, assume I next XXXX I I XXXX what of sense portfolio, would that terms if mean, all the be, But in in Okay. that they better. growth and pool little calculation to it a them in compare the pool number were question frame then let's rest my a get of to

Sean J. Breslin

somewhat that year. Yeah. The York starts But talk in next talking about I a detail market is amount of this yet. year. ready fair about mean, a New fall to we'd there's we're that to just not supply off XXXX supply certainly be

you sell and what the those from impact them XXXX some in to through we in been the all they metrics same-store. run and haven't have But the there. York give to if what able we in be New terms of into improvement assets didn't marginal we the yet insight expect would enough of So remained see might calculation you

Rich Allen Hightower

it. Got

you. Thank Okay.

Sean J. Breslin

Yeah. Thank you.

Operator

Please question. ahead. question Scotiabank. the will Yulico you go from The Nick for with come Thank next

Nicholas Yulico

Thank you.

So, Could your you that where among little in some your getting is for this forecast of or than major break easier? supply higher year. tougher impact the a you bit XXXX see supply down, markets

Sean J. Breslin

level XXXX, about But to Yeah, Northern maybe as XX about terms increases of in sort California. Bay each units change relates that if XXXX. address in about is José you the of this at a and meaningful Sean. insight Nick, and XXXX XXXX, where it then Happy some a they we really basis expect England, mid-Atlantic, relative to down in the about XXXX, around And little up points beyond and New in supply is to a in XX do there's we to see and drifting San units a on deliver then what and relative terms Boston, the up what points markets. to in then talk in are D.C. few XXXX markets primarily bit regional projected of East in look at X,XXX to X,XXX basis in in bit supply

to what meaningful units, year. what's San Diego. be going of of given into there, for cycle and the we as York do delayed X,XXX, decline County X,XXX, Baltimore can New expect there's Orange see in some X,XXX terms the see about In We City, to to about about but X,XXX in construction moving declines, next nature about a sure, delivery question Boston

we good in get when some later point, scrubbing we'll pipeline we when So the be more fourth but anticipated would into updates reduction solid which we been saw modest at not that that January there, it call. expect quarter meaningful, probably is to mid-year what the provide have

Nicholas Yulico

in for say lastly, for have NAV pay may I'd sort economic units leasing NAV may on of higher. That's going historically versus helpful. of And But into than in taxes the that to I risk do all potential sales and, be of it weigh how York, feels them sales get higher, the plays sales Okay. kind have overall how be or the to investors then FFO? condo back impact New FFO you benefit this rather discredited like income now that condo selling REITs. units, And you'd

kind weigh So, that? of how you do all

Timothy J. Naughton

Yeah. Tim here. Nick,

into may just a outstanding no First we give to affordables condo location. be of the us programmed we when and some investment, optionality. all, the an this, highest given that there's the first had We as best just maybe here, use, got the fact community sense

rental. smaller larger While than condominium, typical a the are the units typical they're than

So sort optionality. programmed of to always this some provide we'd

got was be further into between we explore a thought capital rental we saw owed $XXX we further. value, basis. differential steward what construction potential the may condominium, we think as capital to on pre-tax As And, and we to the differential a and mentioned, Matt it as good just highs ourselves about million a

it pre-sale that deliver. which So, ready calculate period occupancy sell, is is next can that we today so well a sometime there, can unique existing tax on a differential. think kind that that's nine-figure going are of in fact on basis units are whereas for about we have to it time condos are talking some even be if a they building that that you we a in to we the year, the of advantage explore in that that beyond this market lot owe still And probably ourselves to that. just And

couple foregone this for we So the months. can of a side cost on lease-up turn really the NOI rental just opportunity lease-up that in bit the we decide little of kind a is think value always here, we the demand at If sort really there But capture cost as on well. a upgrades it's we we can few the thought, of that values weeks. thing isn't that

from that's business, somebody little who's thinking building than base the about ultimately So where is making our this the is pre-sale different who is and maybe the somebody don't profile, requirement And perspective. will a I this from we fallback, Renting think the a a risk so risk the ground-up see extra before beginning. purpose-built we'll require effective maybe condominium condominium really than higher is. probably if

in to responsive his that. hopefully, just how of to out. investment in done informed this we a the thinking both how terms opportunity. analysts been community And how said, market the risk-manage continue It's questions. schedule, And and laid as we'll that's very So, something the out to as we've to we're lot think we well it's playing seeing as we've keep and Matt

Nicholas Yulico

Okay. that. Tim. Appreciate Thanks,

Operator

Thank Sanabria you from America. Please of with come will Bank for question The question. the next ahead. go Juan

Juan C. Sanabria

Hi.

on lack headwind think you question seen lease-up as thereof benefits of about from XXXX a may versus as we Have seasonal the XXXX? seasonality or act an a this that any strength elongated period Just year.

Sean J. Breslin

much in really. of Not seasonality. I Sean. is this pretty terms mean, falling for things a us cycle are Juan, within traditional

there's you think that any years ago a that XXXX. leasing of couple topic this around look I was some in season, there impact what to we're happening relates of at material to markets would specific but was a as what nothing seeing and and it don't the unusual it. durations shortened terms I year discussion So bleed if some mean, into

Juan C. Sanabria

question the to and FFO perspective, Upper about any developments back and XXXX West going risk on just going earnings Side without guess an any kind is from of coming think And I project? developments we to about should with condo online of kind FFO Nick's for impact the – there or development on

Kevin P. O'Shea

pursuit some but rental of it be available, capitalized to, condo stopped route, probably for Circle. wouldn't lease-up then that those alluded have development made the strategy impacts a condo be a as a be have with only a on be that of costs pursuing it ceasing we the Kevin. discussed. consequence And units is as relevant and that Juan, FFO. Tim there out this associated if we've would the would here probably carved interest would is would of really be NOI, couple marketing of The once were as We go would strategy, core you'd a as

may the And that gains things, that big condo thing be piece. core So are probably those the might out be is the be then third FFO, present out are two There things, that of things. fact of those but the lease-up costs there I two one wouldn't marketing the guess be NOI would be FFO. other residential carved would core or main on carved

Timothy J. Naughton

to respect assumptions what to underlying lease-up we Columbus January And when we'll with year. outlook we income this give and our Circle as have explicit in be X, our as are

Kevin P. O'Shea

Yeah.

Sean J. Breslin

if one add was a as to this to our be sure that deliveries we other XXXX I'm not, XXXX. but some fair referring bit just to to in moved that. down XXXX there into were or relative discussion not thing would you Juan,

which would impact of we you'd XXXX, obviously coming aside to back deliveries deliveries different we Circle into more would look that saw in the terms versus to Columbus see XXXX do have to move through us expect Obviously, XXXX. which consistent levels set earnings use, are different come up to to you more we As with start in what have XXXX. in but

Juan C. Sanabria

at mind Okay. out numbers renewals? Great. And guys the quarter giving quarter portfolio-wide renewals the you what fourth the and for you're setting do new and for third

Sean J. Breslin

Yeah.

range of of alluded offers we're in portfolio-wide In December. mean, if as terms in for the Tim running to opposed terms for numbers entire sort and X% mid-X% as I of individual of then rent And the markets, are looking offers, in terms October, at November to portfolio. around blended you're change

Juan C. Sanabria

you. Thank Okay.

Sean J. Breslin

Yes.

Operator

come the Austin for question Please The KeyBanc Wurschmidt Markets. will ahead. with you Capital Thank question. go next from

Austin Wurschmidt

seen question. you function guess, we've any starting curious Thanks was regions then, by really design the I Good rents a see on quarter notable higher This the in and renewals some And in first just tenants Hi. I'm is the to increase for or force turnover necessarily increase, just on taking move-out? this the out? time, morning. if for did

Sean J. Breslin

quarter to bit What of third more this Yeah, Austin. Sean. the This last seeing is year the We is expirations year. quarter of you're anomaly. an relative of had little a third in

at to actually basis down in most of through points, terms reduced numbers this of quarter-to-quarter. there a So, is turnover. was seen pretty a bit what But a about from if you that of as with XXX consistent expirations, the it year the turnover percentage it, little change profile we've look moves expiration

So, in in remains of trend the case. turnover, down been that has reduced terms general, the and

year. material reasons So, It's whatsoever year to last consistent. pretty for seen in terms of this what of there's we've move-out, been no changes relative in terms

Austin Wurschmidt

you significant over next supply Great. the any in the for mean, I it new assets clarification. like seems York that's the evaluated where I several is outer City boroughs, New portion guess, quarters? being Thanks a the you the of consider then, joint did delivered as venture, considering And including

Matthew H. Birenbaum

stabilized to a looking market design Yeah. was Hey, we We Manhattan to with And fair the consistency were had Austin. we selling wanted we that partner It's was all that for types a the assets was by brought amount didn't. portfolio assets. that of Matt. and Actually of all the sale, it capital and to portfolio interest partial a it. that

as in I obviously by we the more that think the many the the targeting. be were institutional And the still were who but that sources, would the demand that most on would consistent it, boroughs kind and attention so And portfolio capital of working from for better. there's that folks the the appropriately, thing get could be deep were with capital deep, well, advised we

Austin Wurschmidt

Great. Thanks question. the taking for

Operator

for the ahead. Please will you next Baird. question come with Thank The Drew question. Babin from go

Drew T. Babin

on year, I looked A is morning. bit to a forward? like decent and growth a a year-over-year XQ. in going with be New a Jersey. to can supply come the versus Jersey what's have amount on Good I Central was going Hey. bit to looking XQ decelerated Northern It maybe question properties And in North of Jersey you And relative to that of Jersey there? revenue just next some guess you about softer market that talk you expect wondering

Sean J. Breslin

Happy this Drew, Yeah. Sean. is about to that. chat

our potential most there in we there. than New terms a is, what's And probably don't normally a done, I'd amount Jersey have don't asset. being In there's have Yeah, big presence a Northern exposed fair Jersey say Jersey, impacts City portfolio the supply, of other on on Gold but is City. we it as this Coast significant

rest And of data way generally, this is not describe assets Bergen So terms high you they nature tend the the will the in how the County of some be I'd assets them. point, see of are in there. to at impact perform, they super

in not So to sensitivity Coast new the along they're terms supply. right of Gold

same the with for Jersey Central assets to and the well, along tend perform just quite thing chug they So most part.

Coast So a supply or they to tend New Jersey. the there's they this it's high in don't environments whether lot like present Gold in a lot where of the at the stable of Northern end, but be on city volatility,

overall. Long provide better like stable It we as a Island get insight supply next we'll in of business into without pretty of terms it's well So terms the it of pretty in performing year, kind runs into of book but of volatility. lot a

Drew T. Babin

York new as grow a disclosures, supply. make there not rotate harvesting think in is guess, should also how New like long-term? guess about the you that doesn't market where point lot we kind of Haven question New Boston I I a market, really sense but potentially metro might of for related it's not a Fairfield-New City, And the capital? York And that some around

Sean J. Breslin

if to mentioned, terms comment of market demand that now. numbers I we're say, tends other But, about again, seeing supply, can run period in certainly Fairfield over few talking on environment, we're X.X% opportunity the And just which or potentially of positioned then a that Matt kind hold assets terms a rental, – the perform as tends I'd others will for-sale like we uniquely We to of tends I'm you to in been the assets, well. historically consider at years. probably those the net a longer be some happy as right X% to last to Yeah. seller that to that mean, But independent we look we drivers growth other in X.X% I have seller. Greater time. on will certainly in and likely to of net sell market that extent of between, are It ones as find revenue based what that. year-over-year of overall uses and of some over it or

Drew T. Babin

Okay.

Matthew H. Birenbaum

just actually MSAs. and think that We I'll a two Fairfield Yeah. to bit. little New they're Haven, do separate add Drew, of this is Matt.

pretty county, City that the sold couple it we're So Milford in MSA. a this at Haven that think Haven are New out last of what in kind down a much But last have lot Fairfield, to of there few further But better years. to asset more year, which likely of next we of in We was there left we New with I our are are New much point. the train closer probably assets little far-flung still sell connectivity. a is York

Drew T. Babin

that to there that up That that on creep down for sort range, yield roughly is selling or to kind economics about and sort helps. more if a on property model think XX-year Is in in And Seeing short-term, might something the secured between considered to out? Xx sheet. sales continue in properties if lastly, mid-Xx as Kevin where balance the even bonds, debt-to-EBITDA net should explored equals certain at the least the of point leverage the leverage you difference, that begin debt the range, of a then the of bound be obviously the mid-Xx question might if target? lower lower we costs

Kevin P. O'Shea

Yeah. it's Kevin. Drew,

been I Xx turn we we're we're think make But the where tracking for with is to pretty our level think are our today in assets thinking support costs I our probably seems help sense. able investment where leverage low to right target have leverage net and capital to activity. priced now Certainly, some debt-to-EBITDA about attractively sell comfortable now.

Drew T. Babin

helpful. Thank really you. That's Great.

Operator

ahead from go from the Hill Please Thank will The with for question you come Morgan question. Richard Stanley. question. next your

Ronald Kamdem

Ronald This for Hill. on Richard is Kamdem

from ones quick me. two Just

Just looking do of New it around? it going sales suburban, New all in long-term that's low-hanging New terms goals sort of is at where projected be of between there Jersey you are? the or a you of sense to where is be York City, guys to and have more curious fruits going New in some Are to Jersey, sell, one City, New the York York, continue given that York just

Matthew H. Birenbaum

Matt. sure, Yeah, This Ronald. is

I in third, the right wholly-owned a pretty city in the a which been more than think third, the balance feels selling mentioned good. the really a And we've time sold I've the prepared third, remarks, asset cities, in roughly this we cycle. As but had suburbs first this now, the is is

actually of area. But might have we development coming So, we look New a because would a do. to Central we York I heavy the Central extent a more in may lot those up in bit proportions for lighten the Jersey, kind be Jersey. little still we of metro

a bit direction. that weighted it the trying to proportion. we're keep more So rough be same might little But

Ronald Kamdem

increased markets was any one, where and so other California Northern the communities it other interesting benefits maybe Got can of it. just supplies forth. to of costs talk you the that when you there sort the just where mentioned And One, was of two, And reducing construction I some terms – about you're seeing is two areas? pressure? those in in long-term those

Matthew H. Birenbaum

interesting. flip the of it's Yeah, The side right? pain,

Ronald Kamdem

Right.

Matthew H. Birenbaum

Denver, with we're JV-type through thing to the a of frankly extreme be is not TCR in potential lot of off is to in and that partnering cost terms that anything now. Florida some also at, in would Northern right that that's it. of quite one Certainly, others California We're Denver most pressure, risk our informed but structures in Doral. seeing doing partners, hard to lay similar Frankly, what Southeast been kind approach we've and of with capital looking building

has Seattle So, of bit seen pressure. a quite

market labor for and a a little reason, bit has, base. whatever it I think of subcontractor deeper

very seen strong great the growth. impact where as seeing we're on hard region it be The it's So, supply, that other Northern we'll see. would quite in ramp-up cost a while also responded aggressively as supply, but Cal, hasn't still

Balboa What focused couple in public-private on opportunities have city on I deal Tim tell is the we starting a you, we our begin we third-party development we to start Cal (XX:XX) it in are Northern the right Reservoir. partnerships, markets there in great where flying a numbers mentioned, side, think, in see the haven't perhaps and/or general, Northern up like to new our signed entitlements more we I'd the at in in we're of in as and with years. portfolio so development own Cal. had

starts Cal Northern in some we've though. that impact it you to our we're would start point it portfolio. it So across don't think right at now behavior. would Again, our And it's seeing disproportionately I there. to seen know certainly

Ronald Kamdem

I you. all Helpful. That's Thank got.

Operator

next Zelman Thank with you Associates. McGill from question the for question. will The ahead. & come go Dennis Please

Dennis Patrick McGill

for question. Thanks my taking Hi.

additional of versus time understood kind since First probably rental to catalysts make creates has the I then transaction And sure the reform think flexibility got softer. you've the gotten have on just was When initially to on more I the want top you Circle, risk that about near-term. condo side. of over ownership one, back the I market to for-sale announced, just think Columbus some going tax

is wondering, something that or that recently tilted you condo? something happened there as So, the have think about more assumptions this towards would rental just

Timothy J. Naughton

Dennis, maybe jump you I'll if start in like. and let Matt

one of the underestimated that the value thing new I maybe was conversion. we think selling a versus a condominium

we as value So, in a first the that investment the standpoint, we about made pure thought execution and probably options just from kind place. what when underestimated of our we

it hot. our in a than market the lease informed just saying let's of that's when So, up view bit rather explore terms now and exploring it is white it

been probably I a that's think Sean the the flat So, mentioned. biggest to factor. From been up, pretty rental slightly standpoint, has market

of economics revenue side. hasn't really the least in view at our changed that rental on of terms So, the

Dennis Patrick McGill

think stats far the you being the of the about there as far be about kind months just noted What nature? activity as assuming and next Are backdrop market? there the up. slide of as as contract XX you then, pricing the incentives being down couple the And on of would a over steady backdrop Okay. of holding that you you just competitive as the market, XX,

Timothy J. Naughton

let us. the we're into we're strong I market Well, and going this is the the go period to guess pre-marketing about way thinking tell it see how is and market

in can brokerage so, try weakness move the may we community, deals second second route. contracts. to we think, this we extent the start we of we lease to don't opportunity we not have the upon of a strength just cancel forward market. great essentially be we than the have And prospects whether to brokerage response we And the the of within building to based to converting want sort market. committed that a then the through had units we these that actually think to up there have again, stronger any of start contract And some the decide milestone to and sort to those to ability or network, the have again, If always is get

of milestones not, the of there, sort couple sort A. back a got we've to can if depth go. the think If sort And we we'll that of go it's market. test it's we plan we'll So here of

Dennis Patrick McGill

just relatively versus is going Okay. kind between versus maybe in more on to years? up look in and supply? bit. back last we looking the to think supply fairly XXXX shifting outlook. been at then, up Today XXXX deliveries XXXX markets XXXX competitive for just your XXXX net-net of just this you explain some a be XXXX I you stable earlier of a then increase maybe That's little helpful. How go the have and question delay the drop. XXXX, if much sizable the be And If you're one the would year, from of was together, to and Can a

Sean J. Breslin

Yeah.

to two last that been see what But more even three than delays I the those could some it's earlier the see Dennis, to or that year, we we've about extent I numbers out. think we be on mild years, based in think is happening. what Sean. what said the seen we has – it in appears what we that When talked normal today, And expected historically, we probably reduction XXXX. given

from and XXXX. some under are construction a the in getting what's as assets delivered of same increasing movement XXXX So actually is result

for we where it's point. you It's we response good the some labor number, XXXX are just pipeline be and to get we'll one questions, as and said on you XXXX, able much. honest, before say probably of finalize hard update where that at down for be based to come XXXX. in to going visibility cycle availability, So, exactly expect provide and on be But QX our how you can as the in I the the construction scrubbing that to here be earlier just through move hard in guidance to that to a

Dennis Patrick McGill

is But today collective distributed sit in than here year just markets earlier XXXX, or the XXXX higher your you net-net, as that today, differently? in

Sean J. Breslin

Distributed differently based on what we know.

Dennis Patrick McGill

Thank helpful. guys. you, That's Okay.

Sean J. Breslin

Yes.

Operator

ahead. the Thank question question. will with from for Capital BMO Kim come Markets. Please you The go next John

John Piljung Kim

developments, the to among or starts going with the forward nearby your increase your thanks kind On to now a pullback competitors, in Target your of your elevated for pipeline is costs you bringing keeping current As strategy neighborhood. at resident, levels?

Matthew H. Birenbaum

a it's Bottom-up, our and returns are two we driven where a is based about our our of couple balance of underwriting. are manner top-down, we've seeing little where John, getting Matt. in opportunities, terms can by what And are pipeline the appropriate a I support risk-adjusted ago, Yeah. things: on as the opportunities, sheet mean, leverage-neutral we talked then kind bit quarters in funding.

So, right is now, at bottom-up I top-down as constraint. the the would constraint as say probably significant least

joint those of new say, if only more. well, we us of developing the first one that we've there less, quarter, out few is year We long this don't the it what returns, development were a signed less for rights the are site that all publics We've terms we at there deals a And look underwriting on are in on of a or working so up look Interestingly, those three really and year. be deal at So should been there that's are reasonable past providing year. GGP/Brookfield, and in this with are for time. the but venture three it developing other mall are those. three

Seattle. that Cal now them taking We're an we existing earlier, of in like looking I in that mentioned Southern strategy do One a densification to was opportunity at kind to the of owned, from what same. Northern maybe an asset already Seattle, Cal of

of of So kind business. that it's more

to reality costs to work. more and it's suburban where tend Northeast. in the think deals reflection the are, a of in do, I that more be So that find that harder hard it's The ones the

New You on market A look Bridge, doesn't That's had a under we've seen this years. for we lot pressure started less deal or has a and five example, deal contract four of in yield. at, hard see a for very costs strong quarter a just has that Old Jersey. still volatility,

you think, Tim, add? wanted I to

Timothy J. Naughton

John, to it. some numbers just to Yeah. put

I think this talked about this quarter. we last

our averaged XXXX it XXXX, REIT that is million, as $X.X XX%, kind going million down in by the about we've maybe XXXX and probably mentioning the to of opportunity as at $XXX XXXX of his remarks. in probably was expectation with around And said, consistent was I looked you down the that's with that of was period, overall kind Matt XX%, the somewhere billion more commensurate what well, in we XXXX, be range. to market $XXX sector seen kind in And starts. If

we that's allocation at kind of have decision. what actually subject of we the time at make economics So, the like where all future, look to to which foreseeable it, the see least capital actually kind for the

John Piljung Kim

is that your new at And representative X.X% yield is or on you're that had year-to-date, overall Circle pipeline of for Columbus the you've projects? underwriting completions when

Matthew H. Birenbaum

The development geography bit rates whole you lot that that. is basket yet product in a just a as terms the in probably started, and on are so a under But little low-Xs, probably the based varies it's it haven't of type. where

John Piljung Kim

quick XXXX the Broadway. residential? press Columbus Circle. Is the basically is than differently one Okay. rebranded And The just to building one being local retail the referring or on branded as

Matthew H. Birenbaum

Whether well, address address. the engages with really XXst side be where floor a West probably technically address obviously is I Broadway, with the retail is actually as retail may to Street the There or rental No, is second residential Street. residential a condo, the door And a which XX front most XXst mean, but has that's residential viable space. on retail is. the the Broadway the Broadway, prime, who street. the not It's engages address tenant

John Piljung Kim

you. Thank it. Got

Operator

Thank John ahead. you will Stifel. from for come Please question. The Guinee the with go next question

John William Guinee

get of $XXX oversimplification, that the a retail million the additional the Can about Great. any on retail like, A happens profit out condo? we're would make tax, created conversion, looks but or in assuming after money offset of $XXX,XXX on units, to Thank created an you tax. on retail bit XXX let's value you. condo say, after the value the that? What you

Timothy J. Naughton

retail. money se expect don't lose we on John, per the to

little As at, it's think business here. renting of so probably core probably that not less confident to based modestly in the upon our the our rents of pro Matt and it projections this mentioned, currently we forma our kind a profitability we're But we're area, contributes project.

John William Guinee

second for more costs question. X%? over three Is like inflation-esque And the economy ball What's next assuming X% reasonably a look hard or years, increases the to X% your or at it Great. of two north remains healthy? the annual then crystal

Timothy J. Naughton

of great in outcome. No, question, you single kind Yeah. middle change of it's of really change that what's you're healthy the seeing digits, John. to kind going sort a When these ask of yourself to

our in drop We in are seeing starts markets. a

might in pricing. coal mine some see canary first the a actually of sort that's relief where on So, it

You the the so not the being replacing have are volumes might construction starting bit. we're But to in trades. we some full order see at builders skilled reporting that we're a and employment of down, labor help little

a this so, cyclical issue secular issue. And is and both a maybe

reasons to X% don't going in or X% with development and we're why rents, optionality on or line of I we're as of can. So think maintain not it's trying to as be that betting we're – we much the the it's one that portfolio

these see if them to ultimately, also need off out. if of or, some it we will of deals, we write just uneconomic. correction we we some there's kind laid So as Until

John William Guinee

land effect Last on prices are remaining prices of question, sticky? any land sort or

Matthew H. Birenbaum

Yeah.

early. still deals I I land sticky. like again. up. seems think say, is aren't are that for deals stopped But that John, land would waiting. do are get We We're every There probably trading. aren't most it's prices question part, too going that quarter. this the Matt And they trading. there are

people land would always getting contract don't we costs in increase put little yet. material under make So, haven't today But in seen for up it and a decline close in more the tomorrow. prices to any hard of terms favorable, maybe expect that

Timothy J. Naughton

XX%, XX%. maybe construction to John, XX% and costs maybe total costs; XX% land probably Yeah. is to The high generally another soft remember, capital is are costs thing as whereas, XX%, as of

make down So, to escalation seeing a come on land of costs construction up for appreciation have to and kind lot the will we're side. the

John William Guinee

Great. Thank you.

Operator

for ahead question Goldfarb Please from Alexander The will come you with Thank with your go question. next Sandler your question. O'Neill.

Alexander Goldfarb

Hey. Good Two morning down there. questions.

both is Or as to some allow maintain in, the Columbus good it sort taxable? period now income that are versus far you at as Circle, those and as like, need First, that to of far be the retail as holding retail the to a REIT there TRS? be goes, condo having

Matthew H. Birenbaum

Yeah. Alex, they actually are both in TRSs.

Alexander Goldfarb

New is the consider? State in would rent that control there year the York And question changes as any legislation goes, concern easy. the control if That's renewal far part rent from as composition, your impact may just change and change or Albany the next that then for they and they Senate with that are those second is, Okay. the of laws coming possible that your separate are affordable units any XXX-a up

Sean J. Breslin

on fact good the A Yeah. in question speculation that it's XXX-a already very of are affordable XXX-a a of to of the the basically about get way. be this it units legal occurred of because a that, would that or portfolio. given homes related probably X% There's at to rents program, the that's program, rent It in allowed. the are caps of subject that in be whether the suspect the would over more portfolio potentially impact the point that homes impact only be Alex, this meaningful to through. are difficult is it. wouldn't terms at whole our would And anything impact what with stabilization And Sean. specifically lot rate I around market would

be been over few everything suspect impact the program wouldn't happen, given the But I New XXX-a material. years So we've through York. the in that wouldn't on last that would

Alexander Goldfarb

away think that they with do vacancy that or But you you? don't would and could Okay. that change if impact you impact decontrol,

Sean J. Breslin

population programs have It whether just depends New on in change, what or units in you units these stabilized units, because by that any York of the they're talking to terms affordable you're different be it's that impacted into work would about of through. the

units to on was are stabilization units because market are rate as that opposed subject are surprised aside So the XXX-a, of that to be that it affordable I'd if technically set different.

Alexander Goldfarb

Okay.

Sean J. Breslin

actually of or around drafted lot there's that's a but there's So substantial speculation nothing this, being negotiated.

wouldn't piece even okay, the likely So it that if be through about, impact I affected we'd assets. think that on be came something but a worried we'd material the be

Alexander Goldfarb

Okay. Thank you, Sean.

Sean J. Breslin

Yes.

Operator

from John your ahead Street for Please The will your question. you question. question Pawlowski with go Advisors. Thank with Green come next

John Richard Pawlowski

On it over for do for it this or IRR what you kept keep long-term rental, Circle, unlevered you had the site? expectation if Thanks. Columbus the was if

Timothy J. Naughton

Hi, John. mid-X% the we we IRRs, long-term development We the typically on gave on don't a I projected basis sense the including here were in but provide range, thought think a disclosure that retail. economics

kind probably have an rates, own to translate you – at IRR. your to what input there you'd cap as into reversion assumptions can of and So in of growth sort that would terms of unlevered

John Richard Pawlowski

you Could how initial Yeah. under share does what's underwriting? it will the Understood. retail to negotiation? that and compare, compare per foot contracted rents How

Matthew H. Birenbaum

two as We're Yeah. or or what and close had rent the mention, have in were going economics both But better to disclose of lease. Hey, signed rent. actual the rents very we It's Matt. deals also Yeah. free TIs signed than in in being are terms both not I we to either terms underwritten that did the of and John. the at

we a tracking we're Obviously, lease. little left of our ahead space far, have program. so So, lot still a of to

John Richard Pawlowski

a Thanks lot. helps. That Okay.

Operator

Capital Wes you ahead. Golladay the Thank will for question. The with Please question come from final go RBC Markets.

Wes Golladay

everyone. Yeah. Hi,

to want go Bay to back East developments. those Just

went I and Creek, think up you mentioned Market it looks $XX cost when Walnut the Avalon look But Public cost you like Avalon had a overrun. million. $XX million at I

million? whole reworked? then subcontractor the costs time this to the or increased the thing labor So, be developments, was have you costs just ahead driven $XX eat did And for of did by if the had locked-in

Matthew H. Birenbaum

Hey, Matt. Yeah. It's Wes.

projects. You're right. to in To two an started projects compared What increases this on cost when fair, the we if already the go back those there recognized very we across we had $XX quarter higher. was quarter beginning additional you recognized last first to $XX Emeryville, was million million be

slide, that, of our within to million Northern of costs locked-in, perform. period cycle minus. X% the right the project where consequently who where generally if relative initial once plus XX-plus-percent you thought budgets And you with locked-in market subcontractors trade long see failed came most your kind in in thought that's or This time, you the at normally, why we what perform. we're to of while what of – look every $XX have, start is And subcontractors from. of budget you when kind long, California, the a that's that now, we particularly projects right costs So, were, in environment you're we the one a time over of bringing had

making get build to them force thought at a price, they labor You it. they couldn't. they certain If money doing they're could not it,

One Walnut wage some prevailing additional execution lessor a created the in ground was deals Creek for which and with further turn there union were complication it's requirements were not we the deal as requirements a of in which public-private had that those BART there. expecting we

and successful locking So, down there we time subcontractors costs would in at at to situations that the are the won't it But just of was be generally, where that very are perform start. our basically market them at whatever is. a you of switch, new price this subs But, extreme well. find prevailing as and have piece one the

Timothy J. Naughton

just Wes, add to Yeah. couple comments. a maybe general of

very the where what's have skilled of and lack that the this in I margin I not on, labor, of we so are just earlier good, the just like labor, cycle but not stretched market think Bay. errors in is just the you is it's they lot low. as late do as to adding productive, for production going And skilled as they oftentimes happened get East mentioned apply the a

tends fails, there it if effect one all the cascading them. subs sub So, to a have behind on

from normal cost this just the cycle, point sub them oftentimes particularly risk standpoint to market, very fails, a at of trying not in California, impact if kind So, error, an so. That's right can in be now, of other and a Northern in a this market to you sometimes mindful or something one margin low we're that subs. quickly the to replace of without schedule

Wes Golladay

Sears last opportunities. obviously retail Okay. for this some We we're landlords one And from of bankruptcy and heard filed densification then hearing a lot can just the me. unlock that

multi-family on So, inbound sites? an in to retail potential Avalon at have looking calls noticed you uptick

Matthew H. Birenbaum

right outside sorry, actually Alderwood a fact, this on Mall – I'm Seattle, something the while. of at that box. new a I in is the we've actually And, working deal for Sears John, dev which mentioned, we've Wes, quarter is that's been former the

on of assigned really about opportunities working GGP a well. fairly And ago. So is Seritage those on but with we senior year development two as in kind work it we're deal the actually a or to person

that think are to I for as and there's locations anything more we're view to specifically not – retail a continue do that opportunity general owners, as we to So we're a to bankruptcy because mall talk any absolutely. great us. don't owners, macro of frankly, and those we that be Sears yet, going all of locations lot the trend, a but, in not seeing interested

Wes Golladay

Okay. Thanks guys. a lot,

Operator

over This concludes the I'd remarks. the you. closing Naughton back like today. turn conference Thank Tim to portion for Q&A to for

Timothy J. Naughton

future. of to for you being today you And seeing Thank you, near in thanks look and Brandon. on forward care. the Take all

Operator

gentlemen, you. Ladies and this Thank today's concludes event.

now disconnect lines. may your You

AvalonBay Communities (AVB) 30 Oct 182018 Q3 Earnings call transcript