AvalonBay Communities (AVB) 5 Feb 192018 Q4 Earnings call transcript

Company Profile

Participants

Jason Reilley	Vice President, Investors Relations
Tim Naughton	Chairman & Chief Executive Officer
Kevin O'Shea	Chief Financial Officer
Matt Birenbaum	Chief Investment Officer
Sean Breslin	Chief Operating Officer
Nick Joseph	Citi
Rich Hightower	Evercore ISI
Jeffrey Spector	Bank of America
Nick Yulico	Scotiabank
Rich Hill	Morgan Stanley
Austin Wurschmidt	KeyBanc Capital Markets
Drew Babin	Robert W. Baird
John Kim	BMO Capital Markets
Alexander Goldfarb	Sandler O'Neill
Hardik Goel	Zelman & Associates
Tayo Okusanya	Jefferies
John Pawlowski	Green Street Advisors

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to AvalonBay Communities Fourth 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. [Operator Instructions] Your host for today's conference call is Jason Reilley, Vice President of Investors Relations. Mr. your begin may you conference. Reilley,

Jason Reilley

and Thank quarter AvalonBay fourth to earnings you, conference April, 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

Tim Naughton

Yes. posted me today then is call us comments slides and remotely. Matt four the Thanks, will or Jason. O'Shea, of The be we and the on Sean Sean for us joining will Q&A provide -- actually that available of With of are last Birenbaum us Breslin. night will Kevin three all the on us afterwards.

year Our comments XXXX. will and then results, QX full discussion focus summary a our the a on for providing and surrounding outlook of

note thought just issue. to I that started, quarterly get I'd have we we guidance Before eliminate chosen

we better quarterly good that how on assess thought short-term have way, that, do, believe some and to we aligned the have You will concluded think quarterly help moving detailed providing our about focus away guidance from about a release. in disclosure results. as undue and this business long noticed may for investors business we with discourage We've which we in that our allows so time continue is

our in at growth quarter concurrent year the growth include, internal now Starting year include initial QX annual Highlights second full on X.X% the continue core at mid-year for redevelopment. We four. the the and the outlook. our with once process. was of will, to quarter basis update for slide quarter, FFO guidance however, reforecasting above X.X% the you XX and our Same-store X.X% revenue or came points X.X% in which for

in we initial XX% assets cost of context stabilized next year, slides than some to of outlook. stabilized to an provide year For I lastly, an provide mostly XXXX two a from And that in average $X.X the billion they we the to York this what equal growth closing XXXX. being asset contributed of QX, more the in New half five more of X.X% completed million our X.X%, XXXX JV and helpful past was with performance full started initial X.X% $XXX same-store principally at yield we raised million. this a $XXX which sales saw revenue development think We external projected where raised detail on new through formed at in capital another interest and newly our the ended for at year, year, The little venture.

Turning slide to X.

growth XXXX. mentioned with year consistent I the same-store for before, As was revenue

region prior some while decelerated saw the actually improvement However, from others year.

improvement bps feel impact significant up while Seattle as several by to showed began the that points points XXX California Northern and and supply. continuous XXX respectively, basis basis and years Boston of of Specifically, from decelerated XXXX, market elevated XX almost

Turning X. slide to

of the rent and XXXX, While that our market. XXXX to experienced benefiting the XXX the the growth and of through end QX business same-store rent saw year momentum outpacing cooling accelerate cadence towards of was XXXX. growth the the for-sale going in and bps from We housing for equal half into revenue XX not. by in a growth was a year provides year, economy QX bps and respectively strengthening good This second

portfolio. the X, slide to to turning and Moving development

contribution by to than from our continue of and delivered rate average about meaningful middle in we did past years. and the part With external costs see in We in we as less next to the growth we when the will new as development, FFO at than third although this only investment economics compelling. the completed last years couple to half were on over a particularly years four homes over a prior in development generate much core three in down growth we stabilizing as about as starts years did about we a years, the XXXX early lesser of from capitalized cycle XX% two had

XX% at it raised greater about the that that the X. came sale than The of capital New $X.X of external lower growth basis to initial raised the dispositions the wholly-owned interest $X.X this form contribute when to slide will much XXX points of end that debt. was from XX% we billion activity was the capital also the and of JV of in in we year, this that raised raised about year XXXX capital Of QX billion the cost cost of in Moving I earlier. in of York Since XXXX. was mentioned the higher and XXXX

Now on X. to slide

debt-to-EBITDA X.X activity did of disposition low At leverage. help a down year-end times. at cyclical XXXX in stood Our drive elevated

the liquidity where REITs what are the finally, slide year, Online the consecutive And year. with Our the including third for progress as leader by to for it recognized in our of XXth several credit Indeed an front turn Best that, I'm organizations and of of AVB area. expansion. Top we with as a communities, And the to in Glassdoor's one customers, on ESG overview list to several Reputation for as you X XX, year excellent provide ranked will by will we're With who XXX we to among renamed going XXXX. made Kevin been helping Work our in associates, lastly, and efforts nationally this we to excelled number consecutive over apartment our be all second industry of stakeholders widely our on the current establish into other metrics And year last move an our top D.C. see Places outlook with and shape Workplace can have for this as where our

Kevin O'Shea

Thanks, Okay. Tim.

slide X%. an particular, outlook for of NOI Turning We FFO to revenue core XX. expect provide XXXX. growth X.X% growth we same-store of In

million of In new under is million level and communities a XXXX of and addition, NOI XXXX. complete we and expected $XX $X the back from occupancies in lower the function about to midpoint, is XXXX in year last from being down start billion of expect which roughly one-half projects. completions development is year. to This at be to unit $XXX development the weighted primarily of of half just

XX, Turning summarizes major slide to components the of which FFO core growth.

I'll impact growth XXXX net stabilized As major of of later the summarize. core and around years. the rates XXXX three from XXXX by to development to interest of $X lease-up demonstrates and from you external factors points identify to than impact provide is short-term the of next Internal in external cost our And expect was the XXX not or stabilized as X.X% long-term more in XXXX. impact the FFO the XXXX a core so floating on growth from capital growth all cycle slide the higher billion the growth And to in rate on capital stabilizing decline be a of growth of slides about billion expected four declining some funding contributing a projected completions growth. to the XXXX. XX, year. average we in raised quickly FFO highlights The slide growth this FFO of is in higher debt. is and redevelopment activity drivers costs level can XX, impacting Slide to external down over contribution Each come $X.X shows investment or projected see net contributing core basis and completions of in and XX, portfolio. of portfolio for these redevelopment prior

of year. while others one-time the such are lower capital more the higher cyclical are development and volume in mix nature impact interest in Some like a prior raised rates of as

and our to dysfunction growth move but into in reform starting economic including policy. and to expect many be upcoming to of of strong them we expect the XXXX. context a The reasons year, expected we uncertainty through a with beginning slowdown driven as healthy Turning surrounding is provide mirror the volatility of bit corporate number of heightened for factors stimulative wear-off We're the XXXX by XX. effects the to slides to in ways slide a do I go while growth, in we global next won't further market, but of in a image detail, moderate labor in year. remain few year and projected for government number XXXX, tax outlook a to economy economy the a monetary

a expect As on growth slowdown a The to elevated corporate business but decelerate as with remain and healthy the Combined year result, waning may at levels. see debt household should apartment continue hand are and spending the should housing accelerating of the continue confidence, demographics market equation. affordability and boosting to side propel the wages to The formation. on XXXX. the XXXX confidence, we the progresses. in corporate economy in healthy we in business profit investment demand Furthermore, market labor and support other consumer

have X% remain take markets, Construction to of stance XXXX we've constrain a in in been sector. These which at And side, year. some seen while lenders the should relief XXXX. more acute have supply elevated decline construction a bit and beyond provide we the particularly help elevated to actually remained stock. last On should factors cost over a has over deliveries starts begun next in year cautious supply nationally, the the markets in expect our coastal inflation

for fundamentals apartment healthy the remain in we macro the sector. favorable XXXX, overall expect operating and environment to to performance So support

for We'll drill Sean? fundamentals slide markets these themes XXXX. your XX more But now let on in XX for where review our in will supply portfolio on in and noted you slide As these in skip demand own. through our Sean and detail. down to XX outlook touch we'll the on

Sean Breslin

Kevin. thoughts outlook demand-and-supply Thanks few and a for our the XXXX expectations. about revenue share same-store I'll

of all XX, outlook to growth notable The most in Turning is forecasts. of our and job Northern slower roughly of job of deceleration the The markets, creation currently a jobs during XXXX. to expected tech jobs, X.X in is while exceeded reflects Northwest X.X% the Pacific or it markets but job California. XXXX growth consensus pace or million Slide X.X% most X.X million

growth during about While XXXX. employees expected benefiting accelerating average the to is Wage job the from growth over and to labor market. been year has X% the is past expected tight slow, are certainly

the increase for San be the California, the Mid-Atlantic. In at new capacity deliveries Northern in in as to California, by in flat. increase roughly new the constrained Slide increase by relatively Northern the in X.X% in Jose expectations XXXX to Orange schedules. both deliveries is is expected Mid-Atlantic, concentrated local came to of for in labor with Southern extended resulted and of California Southern X% will our San XXXX Turning County modest Francisco L.A. in East expected municipalities at stock, stock, for XX Supply in construction is and and district. up address to being Bay San occur and below And markets, driven In market in driven with deliveries increases the the tight to reductions supply now at and deliveries take Diego.

result tight represent range the by of the labor expectation of deliveries the of some that end tracking construction be X% in X.X% we're delays. in likely deliveries again a While, stock, that market Actual the will our will year. is

Turning to Slide XX.

the except perform expected should California in midpoint the shape revenue revenue with rental We're Southern X% for of of the year. outlook growth we starting was reflects rental relatively the an same-store with of in rent good revenue based last regions January, growth all upon our month X%. year improvement consistent in XXXX. same-store achieved increases X.X% with which Our even roughly a embedded of portfolio, And off

call the to rent a XXX term last change ahead to like for talk X.X%, points with of was that And I'll addition year. over basis Matt? turn Matt development. about January In

Matt Birenbaum

Thanks Slide on Great. start right. I'll Sean. All XX.

strength. good while billion has a our per harder to Our XXXX, rate but you this expecting part as activity development find engaged, good a starts billion XXXX decade, to moderating in for sheet to range, slide. balance are and of $XXX per as about late can million is with more see about new $X.X for are becomes keeping in volume capital teams starts the as the preserving our year bit deals We've in the us been This $XXX for the matures run cycle million local per costly. year cycle development on averaged year $X middle

much shown this position so million also that construction held our the year-end, point when $XX and a to included to disciplined Since posture too land risk cycle maintain where quarter. will or carrying be a cycle. in continue land-light California County on expect land turns. position Slide sheet land $XXX Orange balance is on managed land to the million of we At in significant in site we continue contracts, at we the second for As to below XX, land only about minimize our have we the development XXXX at structuring in start the in the we be

there of if any land is from future this opportunities puts drag market. a disruption position us might the advantage in to any that good in carry, the arise, take land interesting minimizing to addition In

XX. to Turning slide

$X.X great close growth private over to deal We flexibility. once development provide have about future obtained. to the opportunities company, Only would purchase structured pipeline land where sellers, These be a years. expected entitlements several rights are land land represent for half the our the next billion we contracts third-party with are of conventional rights on development

it cost quarter, Of other pursuing flexibility that, which fourth rights allow very partnerships, are current in development new we in split types other These roughly that with densification to of a opportunities, markets. that, investment generally through three asset the It public-private through are projects million start construction and And is $XXX opportunities in more are efforts market development half added just different between Kevin. of also entire $X.X the cycles. controlling of are long-term assets note million three the density $XXX pursuit align $XXX asset to favorable future new stabilized densification existing with at I'll The multiple to land where located span and back owned the pipeline conditions. modest million important invested came turn we the including today. billion added

Kevin O'Shea

Matt. Thanks

Slide to Turning XX.

which costs. As to This we've with reduce development mitigate discussed match-funding profit capital. way underway from development allows to development we in future development another us before, risk exposure lock and changes substantially capital by in is long-term in

XXXX. show to multi-family and metrics As slide, key match-funded were Slide you the the average of of XX, On our development borrowers. end against XX% sector quarter underway on can see we at REIT we approximately fourth several unsecured of these the credit the for compare

As our absolute can in credit metrics see, you flexibility. our strong remain financial superior both and relative reflecting terms

at at Specifically, remained low our debt at on X.X EBITDA year-end, high was at to years debt-to-core unencumbered the times, X.X total net years. and NOI XX% average maturity was high outstanding weighted

because all relative result longer-term relatively notable a enjoy of we lower cost the more our Additionally, funding, as of sheet balance which is debt we strength, issue debt.

next our we maturities decade over the over I'll XX% that In about the total decade. represent have of flexibility our debt maturing is with enhances debt needed year on to XX, financial which with it next schedule remarks. refinance debt Finally reducing debt for of concluding slide time back that, our over per on fashioned by X.X% the capital maturity existing $XXX a Tim average only over million to turn average, about value. enterprise XXXX, after And particular,

Tim Naughton

Kevin. thanks Well,

than which was growth core and half than times remain reduced the and XX% our expected in $X.XX We of share, and expect of Kevin per we portfolio to to leverage initial saw $X outlook. in was accelerate as better cyclical our Florida. XXXX, strides through X.X unencumbered of summary for allocation Southeast Northeast to delivered in AvalonBay. markets rent and NOI FFO mentioned. of So, our duration the We We XXXX markets began extended the year. reduced second Denver more above increased the In apartment just low economy make expansion we to And healthy. meaningfully

investment will to but years, liquidity, current April Growth growth a our For with that, to prior And growth, factors to we'd and XX variety formation of continue open into And up year. move way sheet, up to the to risk-measured pipeline revenue be capital lower past basis the for line economic from due as be in us we same-store the the happy expansion. is external questions. development pursue from a further manage than expected mentioned earlier. points X%, be we'll and balance

Operator

[Operator Nick Instructions] And we'll first from hear Citi. Joseph of

Nick Joseph

gone Thanks. Has of far? terms to do and been on final are it you where how made? decision a has execution And in a condo Columbus Circle so premarketing

Matt Birenbaum

sales Sure Nick, I forward plan there. is going step answer we Really happen path, this in Matt. move and be goes that opening as before next But to third won't -- with presumption as we'll we see April sales that or but see that is then be proceed that'll it numbers provided actually won't And we were will the any on that one. proceeds. a is right we do how the probably fourth and based hope expect our quarter is the the and until that are go along office. we plan be condos settlement can yes the It probably probably, now.

haven't with a interested full a up thin we and have but a really will started white-glove full yet. collecting sales have we expect we're we by ready just names marketing active a to Again April of website models office. tower We complete show where floor parties and

when launch. really that's So, we’ll

Nick Joseph

in in last re-lease retail the going? are Then I leased how's the total revenue retail of with advanced or space you lease XX% think negotiations?

Matt Birenbaum

Yes.

quarter. the further So update last no there's really since

holidays. for two sales We with retailers spoken focused get general the And and the are in we're those pleased that. spaces over are on pretty

to since more then. report anything not So

Nick Joseph

come When NOI begin does to the online? retail

Matt Birenbaum

second couple over those the of I It build their late when quarter out. quarter, first the tenants to we believe second first in for turn will in the start spaces

Nick Joseph

Thanks.

Operator

of hear ISI. we'll from Next Rich Hightower Evercore

Rich Hightower

Hey guys. good morning

Tim Naughton

Hello.

Rich Hightower

Yes, you me? hear can

Tim Naughton

Yes, we fine. Thank hear you you.

Rich Hightower

Okay, yes. Thanks.

Kevin. you So, million down here. break capital included there's sourced maybe billion here you of -- $XX -- Can condo guidance. see Could I questions to you a $X this from one that for variety proceeds. $XX of activities kindly couple of Can within new a is says million it is

detail like to number? then asset then with that certainty, markets billion. some level can other that So, of item line behind it baking regard other capital help sounds But sales activities us understand and $X least, the between that in at you're you in

Kevin O'Shea

bit is breakdown this see Rich, growth. -- Sure, a little maybe external on Kevin. slide of you on XX, There's

to pointed XX, So, our on capital, you disposition sales some you to portion includes earnings uses sources will from $X as summary of unsecured on we the year. modest if there's then now, two a top Broadly speaking, that. source out condo our about right dispositions and debt. of from have release pieces amount for and equity respect balance Essentially, page a there's we billion expect information external the and with right it of which primarily; wholly-owned the

little our that's with capital What capital equity debt you on markets sale and and the plan. how capital year. the will from coming depend assets those and of So, is capital two sales debt. markets do It's selling a bit and we'll the the asset activity. the if equity sources, current will to the course of blended needs from really plan evolve over ultimately just business of selling condo and real But mix estate

Rich Hightower

roughly I of capital? guess we tapped stock maybe us you source note, related the that are Can today sources last terms view into And you how around you that. Okay. ATM a factors of in how of Thanks quarter the different equity where then tell price. on for the

Kevin O'Shea

equity capital from resourced external million year. A as common you we X% last Sure. $XX less Well market. billion little the of know or was than $X.X

it's for of So pretty a source modest us capital been lately.

we've external last of over three of of sourced equity capital. $X out fact, the only $XXX In million years, billion

expectation So that We're a and cycle the unsecured primarily activity market of for be is unsecured from of the has that's looking would the debt. equity. been part we market sales transaction XX% where debt the at the reasonable asset and at

of noted going terms real and uses property view. making terms of And in of amount. cost capital factors of usage plan at point our not relative kind but liquidation in assets in a cost that time of selling transaction alternative sensitivity we try alternatives ultimately, we provide course choice NAV allocation take selling and terms the see was into But of transaction which think what superior markets what equity, In thoughtful taking modest And to what And liquidation will markets a concern the from equity. tax the of among markets of other and mathematically that choice routine debt estate liquidation that and merely year, on and it a for we the our alternative looking raising to the capital the markets common planning from include selling pricing we'll be the a NAV provide growing some need. and point from what into business time essentially wait look account if common costs. ATM involves before, view, given I account last is to unsecured of is point you topic. judicious contemplates abatement costs have what investors the the the to as the capital currently can from But and we're from what view forward, assets

Rich Hightower

era. one the one are Okay, But in I here. and appreciate starts That down quick then year-over-year basis got trailing on starts prior average helpful three-year sort development a ticking it. of last up versus the is XXXX. are

more projects with pipeline? driving specific is color the anything may as development characterized the view that? on there anything be that's Or around So that that driving Just that. there is in macro specifically any respect to

Matt Birenbaum

now year back by project, going that driven And the basically one guidance second for if actually one likely That Orange the to start start was volume year. own project look It's in large is last project I Matt. quarter. Brea. our last that you to to starts was We higher. in we one position the land thought in mentioned it's Rich, Yes. County

next. it just one basically and from to volume move that the the year changes project one it's So

Tim Naughton

and to Yes, that. This to just is Rich, add Tim.

that talked to we the in we $X billion past comfortable the being think range. felt I in $XXX million

we we which debt sheet that you upon level asset and capacity and a basis, capacity of leverage-neutral the year can we're sales distribution any likely of any of free do at think it what before additional combination to a that's start cash is, amount basically on when sort having a requirements. So based flow, in given do balance trigger tax-related look

So at -- it's it a over couple range. that kind when that you with years, of look of $XXX it's $XXX kind consistent million of to million

Rich Hightower

Got you. Thank it.

Operator

America. hear we'll Jeffrey Next of Spector from Bank of

Jeffrey Spector

Good big-picture real are to possibly on Rates strategy your strong balance morning. all that or on guess you trying yields what the economy higher land, you're Maybe flattening. comes development just Maybe will balance feel a and again strategy? for pickup in on we talk tempting I markets are comments weakening and developments from to for rates healthy fundamentals think just your to on been even a specifically do it the it cost trying How healthy, to had is get capital more been I remain forecasts remain you development. how question that potentially fundamentals about the between balance rates. flat your and seeing wrong. wrong. all how do Tim, when can just or for take actually guess of the Maybe about forecasts

Tim Naughton

the points mentioned. the mean really managing, some level up maybe land set sheet terms relative right? beyond I -- balance matter it's of we’re rights beyond as long We adding bringing The is strategy starting its thinking isn't you question. and becomes what onto some the of think it we're Even sheet say, of do. comfortably which cap densification as development by capital basis early just ratchet of the opportunities it cycle. this we our that to the still plus. of opportunity long to its of for to it In that as really or match-funding, thanks that trying think compelling yes, significantly really about maybe some sort XXX just basically match-fund execution. of of And Jeff and profitable as increase opportunity, risks. rates in we're we're we're to in deals year, clear then Matt the kind they're a how I'd way that Well that balance we're

portfolio match-funded, and the the as different platform. As a about over just at to capital in intent we cases, typically or get is some -- correction, -- in to a it that go But where to much -- we maintaining development try markets those to severe not downdraft, competency just a cycle flexibility and carefully. opportunities priced and cycle than manage don't level cases a development land equity to ATM, we're company. behind pretty think good available, back equity maintain that the look to to something much markets If really lot to rely you're the in can on three There not markets caught part the we're years, going have from shouldn't in it and land, from going salvage your time But other we the development where given opportunities to be it's just time where think open pursuit it's but at to of are long it's we'll rely as making being which to sure where we’re it's obviously renegotiate it's I tap we able then options. some to we’re the optionality the accrete execution two strategy And stabilized had able basis. you last risk may the not in I markets -- around able the many it's be much because than standpoint, is be we value the we pipeline. And equity lastly, the didn't our next to as late a cost really the develop. of own

Jeffrey Spector

market. And by supply, expect can Tim. XX%. if details that peers I little down bit just a guess bit? believe And a supply little New York markets? That's on supply don't thanks that give your Could turn be City Okay, you various one of more we you I discussed commented they again talk about your Can in to to helpful. supply you

Tim Naughton

to going Sean you want Sean, take in I'm on that? jump ask Sure. to that. to

Sean Breslin

I'm that one. happy to take Jeff. Yes

in terms the But to pretty and in In points. New We're closer expecting York, X.X% you're we supply New overall stock. if the of then stock overview and to region In of in X,XXX about various down is relatively the XXXX. which a you of New X.X% It X.X%, given high-level which interested. to of about about basis are flat reduction England about specifically markets Boston, Jersey kind at talk roughly XX is it was expecting much that units. specific expected of mentioned regions about is be distribution to tick be

York New relatively City those. be a basis in terms of year-over-year also around flat of to expect itself, on being deliveries we

more it. of it made at how amount so it in you at the try we City, to relates opposed New what of may to at look supply, just delivered know As across relative an to look others impact it they on New it aggregate think to look the parts aggregate York in may We comment York about at terms fashion. them. of City We specific you potentially as reductions look

to leads that supply. people the way talk about sometimes So differences in

San my we're online. XXXX all district, pretty infill pretty the it's Seattle, expecting both and an all and then Bay. example. Francisco suburban helpful Northern Jose concentrated in been from downtown Seattle. you whether stock flat where in as well. the East places north X.X% the end not coming in that's to that heavy to downtown of There's even expecting Forest of and and It's much it concentrated as XXXX are an are New supply in the has Seattle increase That's remarks Union in amounts specific mentioned in so in as Northwest Northern I of mentioned located that where around Seattle I the York California to We're which mid-Atlantic, terms Pacific, so In deliveries. all of most in Lake much Hill, mid-Atlantic in know prepared So just coming we And Bellevue, that's in downtown Seattle, in in supply's in X% X.X% San year-over-year South tick-up pretty in of stock as that's urban relatively Virginia. much flat Northern or to Redmond both the like markets California, in us. Maryland XXXX in

par it X.X%, from at up about to is then And there. stock ticking which So about be XX X.X% X,XXX Southern points pretty should basis of units. much California,

submarkets, County those market, bit little actually primarily of Woodland both in of as the of L.A. come and those primarily down to markets. All L.A. in is we're San kind Hills a to Hollywood Mid-Wilshire, compared Orange expecting Center, in that Warner downtown Diego supply

So and to submarkets with you well. that's happy off high-level about a want chat talk overview of about specific that sort you if to as line

Tim Naughton

about year last Jeff probably was add Hey, a to comments one of the that the we're about expecting Sean's urban markets as and to submarkets two concentrated it the three down just outpace In the in markets lot you continues times. it from urban to supply thing urban in as our X.X% be about in by to breaks submarkets. basically hear basically one-seven probably suburban two, suburban

about So as twice almost much. it's

quite different that scenario a expect bit. we year, Next

So –

Jeffrey Spector

Great. Thank Very helpful. you.

Operator

Nick Yulico Scotiabank. of

Nick Yulico

total Good the on the when about everyone. you give I condo million morning, after-tax is sales helpful. details is $XX guess, for gross question from talk the On XX project. million which the A projected is to some project? be questions Attachment proceeds $XX expected that profit to you Thanks. couple there,

Matt Birenbaum

No. Matt. this Nick, – I is think

our we the just cash door I that's basically. for budget that think year. this It's in have settlement in proceeds the number

Okay.

Tim Naughton

happen for just to And then, on unexpected or less actually from of kind sales go. had it settlements other sources less put how something being actually vary as lot We may in winds on based kind case raise or up starters mentioned. purposes. we a the more more capital budgeting when of for Kevin If

Nick Yulico

Okay, yes.

your the think I basis. cost expected is on on think project, which value about? of above about in Is said number good a $XXX you that the still to past that a pre-tax you incremental million

Matt Birenbaum

That total it to rental number. is last of basis, do it's before-tax worth think at based we as difference that if about that think you looked if think put be on necessarily building versus apartment relative sell-out you relative be Yes. think a our million. would would a out, worth worth that what although, saying building I leased really That it, would more was a quarter, the if a the our we're what settle But you condo we as is that is about it we values to that rate where an up the building, was condo not than what basis. and $XXX building on thought cap

Nick Yulico

Okay.

any what hit is sale on the could an ultimate have you number you do NAV benefit assuming after-tax you share basis? So on plans your

Kevin O'Shea

I mean, commence Kevin. yet premature. even we've marketing. At to Nick, this it's this all is think point, I

we'll most time activity but closed sales occur. what see of happens only terms the in not sale in years this would So we when of over year, the succeeding

Matt's when numbers which about you to the million to comes in when the what this apply then pre-tax call what that taxes rough a on have all million $XXX our But pro if for basis achieve portion, of happens with hope residential this in just is value is sell a a market associated take tax comment we If And want early terms balance is from assumed you or done that of rate taxes. to path it down finally said third $XXX and would to condo this a is forma pursue after kind and we're net see we see to then the ultimately path we'll and out. shareholders profit go we and everything we effort. what when days and so

Nick Yulico

that is Okay. FFO a this that And the on terms then assuming in the $X.XX impact this right? year, FFO. drag is project guidance Is of

Kevin O'Shea

of through to sort So clarity, the West Street. the pieces lay Circle at of of right XX, just Columbus to Attachment FFO XXst the for out sake adjustments bottom core XX walk the if related you or Page XX look we

when forecast only to $XX our of So million within NAREIT generate would activity in have sale amount million amount but we of of FFO, modest noted, FFO. to going anticipated included an would as Matt $X for core excluded that this then be that year million gains $XX

you on talking worth two shown There that are Attachment million see also XX. So negative are other line that $X about items here.

$X incurred basically costs costs burden -- will and related condominium of and a plus on but to that EPS there condominium And inventory. but which associated cost you'll Essentially, inventory. is The balance line, $XXX be complete the carrying and add them to marketing those then and will is back that's sheet FFO, carve will FFO selling core first represent operating is this it we of of at We'll million project we that million. condominium homes. costs final roughly of then with unsold expense have items, out put NAREIT part estimated they the when Those call we our inventory incur cost. They'll have those.

We those will we and continue costs FFO core to out it costs so be of carry those back. carving and adding

discrete So differently them of traditional to our out in not a costs do is activity at carving and Circle that on essentially REIT as that year-over-year It's from treating core a shows view. looking with this FFO Columbus line. trying recognize is a a what we're present and a those of this multifamily trying FFO and activities activity business traditional gains and kind adjustments point performance and manner business rental these operating core to REIT our different

Nick Yulico

Right.

a Is result still to here is, all $X.XX But helpful. that negative your That's right? reported XXXX. net FFO looks Okay. the impact it in like

Kevin O'Shea

opposite, the it just it's back. adding No

sort So look at core NAREIT top. FFO as a to being of FFO FFO reconciliation the items those with at NAREIT

addition of adding core of million of marketing $X unsold costs, million reducing $X.XX. for gains then So NAREIT in $X and adding million back FFO cost to imputed carrying million net FFO to expense $X or $X inventory for

positive to net three $X.XX. is into going core FFO those the when taking from account items FFO impact are NAREIT So line

Tim Naughton

guidance between was NAREIT Nick And our core FFO difference FFO. $X.XX and

is So $X.XX basically this of $X.XX. that

Kevin O'Shea

Yes.

Nick Yulico

get right, we All Thank of lag a Okay. X.X. you.

Operator

Our from Rich comes Hill Stanley. next of Morgan question

Rich Hill

just time of still coming development on your it likely to apartments. as new Hey good development But pipeline, late little need recognize spend see supply might some Wanted down be prudent. morning markets that clearly why cycle more guys. and there's maybe bit

development you're developing? already when curious land I'm to thinking How existing your pipeline, portfolio? think option, do about of that relative have where So about you're sort you your what you under

Matt Birenbaum

was Matt. it's as at and is try one. Tim that take mentioning. shot It Rich, somewhat bottom-up I'll a

in starts be at Where think don't cycle. I Typically risk-adjusted of frame still wood we have product infill wood one, than it started starts best the for economics and a except point well. fit everything urban supply high suburban planned with are last So where really there frame in density the of we're -- where are they're opportunities? as year, development this kind and to any demand submarkets. product description the seeing going this favorable? our Typically we locations, year the strong of constraints all are is that more that's

same of little last generally have aren't necessarily pressure tends process meet more speaking little those So seeing in a reason better a one or through submarkets on up rents, over supply recently bit. it out couple to to rebound a get held have a little the although the is which here years. But urban markets the rents and seen measured rents takes way longer that actually

still quarter cycles. development entitlement X seeing suburban year of out. to It's Those be pencil deals are a Island. in past some we Long right resistant we to Northeast a So, the deals added probably X process. types to the tend pretty of This year

then our now to locations billion So still locations in $X be already which favorable. again is are we And seeing we rights own densification and where opportunities I in at six view, have while we're mentioned portfolio, we take to as from opportunity development one but get where entitlement do to point have of more It's in complicated we love, Redmond. we a over the time. those. They're have going that

Mountain View. have one in We

Boston. in Suburban We one have

most work through Doral. started are great are And opportunities then deal market things, economics year are to the a expansion cycles. in last we find those in and So to in likely markets Florida we where the trying also

start this downtown neighborhood to product wood-frame We have our development a hope that ground-up kind year. which first in but a which Denver in of of is right outside market, is we very the there, it's RiNo, hot

those still through where the are of it kind places making So it's the screen.

Tim Naughton

Yes, Rich.

because costs, make from doesn't of land Bay development opportunity. the think, areas and haven't different been of, new Area. been where We is haven't I used of our just a kind probably sort the cycle feasible construction generally three dynamics just we has Densification active, standpoint. as

submarkets, cycles. been been our portfolio that Seattle, where to due to years. concrete, land haven't do is the most later generally think, able markets again, doesn't in pencil last within And we've in urban the that. we three the then So I active

-- a where in try get of use make there, we just good be, doesn't a to where other are to cycle times allocation something doesn’t of as development So those we help we us the use to recognize but are there be standpoint, places. this to want to where from blend which portfolio -- is capital not sort want pencil, as

Rich Hill

portfolio your I'm at, coming pipeline need ultimately have. of, Got being your to is was contribution nice driven with getting activity. from by new what growth by And new not investment like development and stabilized it. sounds to struck sort I have

you're if So the that we consistent away way stabilized a it can But development like, you think beyond, as and in with portfolio to supply. nice need to of still the start really thinking about XXXX pipeline peers. about your went sounds fair have. that it? It's areas grow Is is think the in development even sort

Tim Naughton

in I outlook. peers kind somewhere the quickly. middle year it of for probably glancing our is are, mean, at just our of where real this Our outlook

XX%, of are peers the in lot markets. we're So XX% a same which the in U.S. of our

say So the have. makes wouldn’t nice a I we to would sense of development, think, say notion the expectation. similar terms basis, might it's perform have, it but is a I to we think reasonable I same-store that in on

to of accounting raised you it's consider doesn't deploying lesser albeit delivery you're which happening in to particular side So on what's both and the -- accretive cost flow on the anomaly, where as point that at it, about just cycle judicious a capital really, for in FFO, least reinvesting is we still and We both this free think XXXX. financial in NAV cost amount it. sort both year accretive have the this we a cash capital. an was basis, at initial But think go-forward is and a that being an to

So still with and accretively we standpoint continuing pipeline development from by an see. think the can opportunity earnings our that we we both set grow

Rich Hill

it. Great. appreciate Thanks, I guys.

Operator

KeyBanc of Markets. Capital Wurschmidt Austin

Austin Wurschmidt

you. morning. Thank Yes. Good

out you up that curious pointed plan cost basis XXX what in is capital in are factoring just the year assumed capital guys the about XXXX your in for of You into XXXX? points billion guidance your versus and past I was $X you've

Kevin O'Shea

never We've on on capital commented Austin, We is Kevin. this typically that before. actually comment markets. don't

showing issuance to debt, XX-XX doing we're course we're asset our into So of Essentially activity unsecured history. by sales budget going bite on over transaction something execution of of blend even XXXX. we’re unsecured and achieve and that the we've essentially rate assuming in the process, our XX-year but never done debt market to kind

Tim Naughton

curve and… on just forward typically the at the would look we debt, Kevin

Kevin O'Shea

Make some adjustments.

Tim Naughton

of adjustments some Make that.

Kevin O'Shea

Yes.

Austin Wurschmidt

for Appreciate then growth rental Thanks. moving that. development redevelopment gradually, starts given improve as attractiveness albeit is have in the rate and forward. And today you the decrease what seen curious just

Tim Naughton

take Yes. Thanks, Austin. Sean you want to that?

Sean Breslin

the I'd in And million mean, a $XXX planning out to Austin. million about X,XXX A opportunity do in chunk the with. that but redeveloped that forward to little last so. Yes, and invested going Happy set over active still $XXX but we're next across $XX -- somewhere million rebuild been $XXX of that something years probably to We million, almost around that past year have the year beyond then redevelopment bit, a will the compelling the spend activity. breaks forward, we're returns of on about been it comfortable has And couple range in going think us. redevelopments pretty for Sure. the homes. of at me, of to I headquarters Avalon year. units been excuse development related about X,XXX terms

So that's are. kind of where we

Austin Wurschmidt

moving forward And returns different majority the how the those I is and kitchen redevelopment about little a and opportunities of versus bath-type guess animal? a Edgewater you think more on bit do the

Sean Breslin

areas. rest is that projects only we're any It sort a kind homes. are we are homes, projects, only, just thing. return. redevelopments was the apartment CapEx. And scale doing purely really Yes. are some either of the of apartment certainly which just not just doing full one-time large common Edgewater incremental the a it there that touching projects that combination is of which then not CapEx The where just other we're generating apartment It's of call includes

is And you range the again, on on being sort but so as and it I invested when based typically the look just you activity, in they building. of apartment-only activity capital enhancements apartment-only zero, of terms something generate redevelopment nice the side that are of probably XX% are said, underwrite seeing [indiscernible], at in that we're type basically the returns. And CapEx the returns in the

Austin Wurschmidt

for Thanks time. Great. the

Sean Breslin

Yes.

Operator

of Baird. Drew Babin

Drew Babin

and of FFO would that be Circle Presumably number condos core out cash and the offset have NOI if with And core should negative, XXXX out think that are good apartment gains, more of kind if sense? on how FFO looking the in will FFO Hey, makes is NAREIT from will the to sold that enough cash you you that reinvested. that the core FFO. would gains to that in I think of is morning. Do increase. that more add-back Columbus I'm dilution that of kind between I go difference sale be guess, XXXX happening sold to these have now is in positive be backed of you which cash can reinvestment would the occur to the the see as rapidly assuming. the condos coming project you Will been replaced getting the

Kevin O'Shea

maybe of that. is on and of top couple Drew, want a I'll Kevin. make to add I'll Yes. comments this let Tim

boost So would condominiums estate essentially to of would and as course will it extent selling we we generate gains. that for true on gains other real FFO be NAREIT

meantime, an terms view, an the that. inventory return would earnings. And that those we a while so in have in will source of naturally flow all FFO. generate through computing capital that as capital of through our condos outstanding when back We for then of on receive underlying and prefer it, reinvest will and our any quickly would equal, return, In the the certainly course, we cash we gains else sell From exclude point marketing cost XX, is to can million created that them. for these unsecured created We're having see for but and inventory condominiums. borrowing calculating of the $X unsold capital, X.X% will where We're on capital on about that sold were Potentially creates imputed we which can have you not as if them. we the you those cost are adjusting we've condominiums, bearing today. with inventory Attachment carrying we corporate rate, that associated costs at condominiums yet

while the in the inventories that's essentially the core I from not and to a So earning to add-back return. cell otherwise know don't FFO you sheet Tim if our NAREIT pendency add. balance want and FFO during process of

Tim Naughton

obviously, the amount mean, unsold go inventory goes it. we carrying down would sell cost with adjustment I Yeah. of so as down

Kevin O’Shea

Yeah.

Tim Naughton

just this of Secondly, Drew, I capital. just disposition would as think more

And so assets we just sell to less than means we're going otherwise would.

we that other to quickly you presumably in asset we deploy terms get any sell. So deployed yeah quickly of how as and get as

that as you of cash really terms think know to don't differently capital I how So you model mentioned. a and source need in Kevin it's of just

Drew Babin

That's helpful very detail.

like on it is same-store is, The least increased all management, on here a investment other for that was based look overhead, not X%. that double and just up rate the property things this over severance for adjusted digits. looks total bit. Corporate moderates management XXXX NOI my in have question XXXX numbers, And but on then at quite and for I like if you expenses guidance

projects that internally, of anything away that guessing of investments the going Or where I'm on things some large I'm kind explicitly like scenes behind there in XXXX? sourcing So or going are development the causing variability? these in there XXXX is

Kevin O’Shea

are costs that up. a of of there terms drove in Well, XXXX overhead number over factors

severance part were a in You sales for PMOH, in was that costs. there some estate there tax XX occupancy costs did you as referenced for rent was outlook. included may number the have increased reasons. Attachment and Compensation then of part which accruals used is in our of it were our of some recall overhead but settlements that's G&A

in there's So will same -- strategic certainly fruit are and been and the initiatives, on some speak the historically side Sean time which operating some could to. at also investment bearing and

why X% based of is are that had decline past that Attachment number in to couple a on starting in about of seeing that the the abate, in drivers growth think math X% is you're there's we've XX. year-over-year So overhead, which of which to over growth years relative I

Drew Babin

helpful. very That’s for all me. you. Okay. That’s all Thank

Operator

has Kim John with question. our BMO Capital next Market

John Kim

you. Thank

starts and but year, costs development gap a construction the rental up between have you So picking this rate still there's growth noticeable growth.

wondering narrow not, as that that how So go through yield? the impact you you if development I'm if will gap And will believe pipeline.

Matt Birenbaum

Sure, been a John to Matt. again and is It like we've good the moderated markets some growth one in It's this costs this somewhat. construction feel question, certainly speaks does watching. mix And business. of has

before, years regions. As rights the Tim have in a mentioning Cal in four those over and two very Seattle very last we key we Northern development few was signed starts and new three,

markets last Northern any costs growth. the don't those their reality, the we have the of a of really that seen the have relative fact, -- market year this or function In rent And if that's most Cal to year. aggressive growth hard if that's

growth the and of on mentioned between And a it downward put does is So it pressure markets, the growth cost northeastern rent I some again, volume not more these construction and that's stable wide, and but is affect mix. lot down. reason as margins one nearly does regional the gap

John Kim

amount compared IRR rates, was the you that sold you've unusual that year what historically. anything it down achieved dispositions last lowest what highest have to sold, you in last your also lower year, brought On Is cap figure? there but executed that you’ve the you that the

Matt Birenbaum

of really is Matt one another. It mix is to kind again. from this Yes a year

just that infer we So of assets the on happens year with realizing there's a had puts do another. to later long pressure dividend of to kind essentially that the tax gains gets that of bit more lower our on kind in as of from one see gains us because little wouldn't I kind tend be one versus a coverage. pressure to cycle, it The thing anything basket and probably sell we cycle

returns, sell So require generate again, but of could that special enough gains they higher we it might plenty there's a dividend. that tax other would would assets have

of seen greatest start of and in the weren't a the successes, like what looking also where sales more easier recently. our for we've to it's of calling maybe execution that some definitely cycle. strong that market that's to very we consideration then ones more a are may in do be which in later little bit So extent And assets terms some the difficult

John Kim

question. a think mentioned the beginning being final you manage I if and do completely moving too wondering Tim to you're it quarterly then or quarterly prepared whether what generally in And reporting necessary? And guess And away up about not speaking, quarterly Okay. that I'm number? that ended your guidance. at remarks you that's from distracting

Tim Naughton

view on have I a don't report. quarterly necessarily Well,

to down mean at is about to to for it and issue When reports. talking a daily and often when we just it trying to business relative overall sort but be I variances really just quarter-to-quarter. noise. investors to and or budget to sync don't managing just kind of to ourselves talk to It's what's reconcile, explain to earnings, times quarterly there's continue ultimately the weekly. a how to what it lot on of we -- -- serves we try think comes purpose our to noise looking our We manage our comes it the we that, -- a minimize is up great we're of basis. explain think When revenue, to from quarter trying And budget -- always we're the really quarter-over-quarter and and in relative variances the business. amongst comes not our board, happening

it. that’s as -- driving that's anything So much

John Kim

much. Thank you very

Operator

O'Neill. Sandler of Goldfarb Alexander

Alexander Goldfarb

there. down morning Good

So two questions.

about recent or Just sort about with Journal XX condo guys just the XXst, the weakness first, that number were sort versus now set price? have try much how that price you today then you on you the fully it how of the condos? year to as a the just pricing with West talk Columbus switching do sales committing? in before of go target project you million you fluctuating maybe and some -- are $X Can flexibility when once on guess units contemplating they I of And mean of have you Or weakness bit to thinking little hit project under article a I you articles Circle sell last the it forward factor process want for the to about point.

Matt Birenbaum

Alex It's its a process. dynamic Matt. Hi, definitely Yeah.

weekly. So we can change pricing

more launch about once slowdown price was, than a for-sale. quarter, as XX it's bit higher We'll talked the file so been be obviously we like you've our we And you rents You points. initial watching definitely the with it have And the to Attorney it however at Yeah, change that, the more every the There flexibility might we price months choose little now offering meet had softness have to with done points. once is day. your call plan pricing. very market, General closely the in ago. do and last that to be softer some that's market just your you moderate the

the today sell five activity settle So think we sales higher would sell in of more again, had But lot we'll attractive would get been than actually values to – a rental price underway. probably most in very product months building. the once the we will for available price sell tell experts it some still XXXX, know relative to is four, believe you, and market it but today, probably the if we sell I where

Tim Naughton

Yeah, don't less million of if mentioned, – end Matt know are be had more or the Alex, a as actually its a to I where of remember split $X just higher you than XX% feeling the units and softness. over kind of the it's little scheduled

in and in we think things the that unique price. much particularly units submarket potential offering a execution we like So terms tend one where more it's here of about to larger is that condo total expensive be of

other lifestyle think this larger bit and we that but be – near neighborhoods So amenities little unit, maybe site has. going location the that we're not against competing to offering a

uniquely that's will so. buying to Plus, but think market the a successful there. ultimately, plan available – is be it's off it's So to whether do else it's positioned going strategy everything relatively versus we out one, determine a that

Alexander Goldfarb

that's under referenced Journal why I Right. softer. question, article point because Tim, price the now million the $X yeah, asked is that being

external questions question the the sort of of one benefits on – of that the is by going for offset second was The is sort the earlier are the development back development on funding.

stays not as growth it as growth? thinking it economy risk-reward your to development than pipeline boosting where paid the you're adding even is it sense right more not a perspective, the to earnings the development just is, if earnings from would I'm that being sort program perspective, curtail it's as now not for far assuming why from of make So, more? curtail if risk even

Tim Naughton

I'll deliveries is earlier $XX question generated, to – weighted. It's the earlier our Maybe, add of but cadence is mean, unusual this the the see I And mainly accretive. take things it the was that prior is year, only that has some Circle, expect A year. to did I which million, we that that year. do about with to an half unusual back-half is earnings deliveries largely I generating cadence to this year year. it mentioned do NOIs I was of is we this This of of what Columbus just development there which growth an mention the midpoint unique combination NAV think and and do lot of as growth

is and raised raised in So already was a in – capital of lot It of was raised that raised QX. disposition. form the was at It

Kevin O'Shea

Yeah.

Tim Naughton

As – I at of it sort a mentioned, X%.

there small on line. And where have think zero what things liquidity unique happening. relative not to our or out look then, some if you we billion $X.X it's "unfunded So is match-funded", remaining pretty at I

we standpoint, already it's -- measured. it's So risk a pretty pretty think from

Matt Birenbaum

don't last in lease-up are attachment, the just XX an those of of It's the now, look I X, you remember If deals. starting schedule. basically out Attachment just fourth, odd development at right only time, and three deals

Alexander Goldfarb

Thank you. Okay.

Operator

Associates. of Zelman & Goel Hardik

Hardik Goel

question. for thanks my Hey guys, taking

you replacement ground in to product build that XXXX that see you in situation merchant relatively coming would a area? market if sourced acquire of do a I rather at it's suburban see future the small acquisition, lot on premium Meadows built of The than do right the a and cost in on the where Just sort there's that area, you develop could up

Matt Birenbaum

we're Definitely Yes, that. hi Hardik, it's Matt. doing

more Florida you deal buying it's one an fit as Airport, to Denver modest. in If that by don't I I year necessarily built were was where what brand-new either and been kind at in it look premium or, merchant of the they assets we've They cost description. replacement all the think last and near view even builders to BWI in we bought certainly pretty we're more doing and. and of of involved, way where we some are a doing But obviously, the think that in margin, doing risk that's we're bigger we're are those an portfolio our than because but markets we add those each. development those for markets, deals great there's on deals a looking to certainly where development we're

Hardik Goel

the trade-off future understand pare And capital up away. I maybe more see than It's a time because Could you come up is acquisition? cadence these that to there more development though in right need little capital at with rather in back of and development. be the put come a and of you a different you where acquisition opportunities bit

Tim Naughton

same. standpoint. it's is a one a particularly This economic development Not from hard attractive was every Yes, to the cycle cycle answer. think I

risk-adjusted be Some acquisitions basis. might quite on and allocate not more you yield as therefore, the others opportunity cycles may development inclined a capital to to

a deploy So, place. not if basis it, there first the somewhere in towards not allocate raise to returns it going the we're that else activity. it risk-adjusted or capital allocate right then We'll on

Hardik Goel

lastly, for thanks just And indulging me.

deal, picked that deal On why was and you you you could location? highlight and Harrison process the like like specific how found what that the

Matt Birenbaum

was that Denver actually out broke That assets We a partnership. way. Sure. the public-private

would Of have public-private the course bucket. partnership the that time first in for been

Tim Naughton

MCA. With

Matt Birenbaum

of showing it couple way the been for years. last We've that

So, was train MTA the with Harrison. the a was at station long literally in it process. It

the well least entry significant very stations, And that process we as the think deal at working at be infill, between but state I as had of years. train amount residential, Westchester more we've location very County. been five that difficult Honestly, there on jurisdictions. those retail in those hoped of it's barrier local very just and a there there's to high very, might for

we're more those how many going So, sure of see. to I'm not

Hardik Goel

Perfect. all me. from That's Thanks.

Operator

of [Operator Jefferies. Instructions] Okusanya Next we'll hear from Tayo

Tayo Okusanya

kind put talk numbers? could about think how do don't, guidance? impact Question, you guys can numbers for of the of how Good XXXX into afternoon. about if Amazon's generally And you any that Yes. just you impact HQX you

Tim Naughton

on mean, sort rely Yes, Tayo, they're little parties. a lot to this Amazon, effect. bit third growth certainly Amazon I we is projections, at incorporating Tim. look when we certainly, job the of And a of some extent

are think Virginia Amazon honestly, be the the may some of -- just effects may I -- in than coming and I talent D.C. looking be doing, like establishing the Virginia or properties, a and lot Facebook there's a companies technologies Silicon Apple where of of it's and beyond in, whether markets Seattle already well Valley beachheads opportunity may for depth potentially, more other think be than more of talent. other in Google, technology knock-on

the ultimately think chose, be think of you magnet was the And I talent. where more companies. where for other -- they thought of finals ultimately, depth technology there it'll where just when decision sort of look potentially they a HQ I validated So

see. we'll So

the impact size think as only the an X,XXX of have huge in jobs, well its I but maybe of it big I of might market. this are as the market nationals winner think by that given kind way, just

Tayo Okusanya

of presence talk building a about little acquisitions, talk focus just And what XXXX could is and kind explicitly Denver to Got expect while you. about guidance your you then And don't may then you bit on you if two, see? in still the Florida?

Matt Birenbaum

so because exchanges. of years Matt. we dispositions, We that we our with number fund just it's in specifically which We'll is sometimes what then couple been To extent, guidance any unpredictable. Yes, find Tayo, the we deals doing tax-free likely do like will it's don't include acquisitions incremental last Exactly. through and the we've for we see. that

So to neither but Florida. going Southeast be primary capital and focus the acquisitions dispositions Denver are to plan se, our is or continue per reflecting

Tayo Okusanya

you. Got

have for you all just guidance billion in funding? is That's all that of $X the sources sales? So condo

Kevin O'Shea

No.

So Tayo is this Kevin.

we development. reasons. one One for of is conceptually, two essentially, to fund So sell assets

related acquisitions our -- any don't of with Matt plan. activity. disposition for paired year in acquisitions don't have as we activity and trade to is basis in related capital other the our fund correspondingly help kind We acquisition The paired to so have budget any

is what $X billion represents However, see assets the debt blend which external unsecured equity development from wholly-owned of you to of disposition and there. a selling fund capital roughly XX-XX

we have development. related to So do disposition activity funding

Tayo Okusanya

And income sense numbers perfect. you get associated structure with then talk could just if building indulge we to any Just fee more a one about be into fee venture, if you our for me. Okay that? could The meaningful of joint the should XXXX? trying

Kevin O'Shea

fees there's primarily a renovation it's minor be around will to that There are fee. fee property capital. I management some about of There property mean, fees, are other deploying a of it in. But way management kind is added the think margin rate kind

Tayo Okusanya

that? do much I guess you be the kind think was how that guidance we could of how about, forecasting

Kevin O'Shea

I'm the question terms sorry what in was of again. --

Tayo Okusanya

quantifying fee income coming just of much be or could In kind just that? from think terms how XXXX of how -- about

Kevin O'Shea

million million X%. which which amount $XXX against generate essentially management we'll property it certain So will XX% we of sold of of generate or and fee $XXX revenue call a

good does asset venture. where expect akin City fees, the we but way moderate amount York one It's think -- management that's were with forth. the to asset associated fees that for the the suite management, we New But to joint incremental economics platform it's management fees So for property about venture. a do we not it of activity so of to that provide this full had had and a

Tayo Okusanya

you. sense. makes Thank That thanks. Okay,

Operator

from Advisors. Pawlowski we'll Green of Next John hear Street

John Pawlowski

for Thanks. Kevin you. just ones two quick

cautious that provide everything at the comments the more becoming on love that heard Your are because lenders could multifamily. details meeting NMHC lenders more you sector, was we

Kevin O'Shea

think you're basis, on I a right. relative

point, of true. we What range. financings of are probably It's cautiousness structuring that there's a more that kind is, equity for while And want that there's pricing well multifamily. there understand construction terms. I there's on basis relatively to construction market is later in is L we the is levered, I think in appropriate you cycle market of mid-XXX because provided there's comments you're we think competitive lenders non-recourse support, hear. what LTC just think the caution on non-recourse construction XX% don't not -- over lot not respect as increased plus to sure you’re our -- both the not by XX% stages We're flexibility probably in there points to interest fund the the your to from make that from our do relatively basis financing on on construction is pricing higher line. I aware around is with

Tim Naughton

And to be is specific, Tim. John just this

to officer the speaks the Just chart to refer to loan right slide XX, one we senior which sentiment. provide

Kevin O'Shea

there's good interest, the lenders are the a probably more a but markets for lot just that judicious think overall which I So sign discipline. being is

John Pawlowski

Okay.

are can On guidance, payroll that the the assumptions and you provide property expense tax XXXX into guidance? growth baked

Tim Naughton

to Sean, handle that? do want you

Sean Breslin

we're is Yes tax about expecting then absolutely. growth is John, payroll property X.X%. X% and

blocks Just about insurance, we OpEx utilities, at for everything is to really payroll from perspective give base XXXX is total you else. property some and expect coming growth for X% and of XX% taxes R&M control the projected growth

John Pawlowski

Okay. guys. Thanks

Operator

turn closing the Tim there like to call questions. At back are I no for time, to over comments. this further additional or any would

Tim Naughton

Thank in forward and on you April, you. being we many months And course the coming for of thanks look seeing of Thanks the everyone today. over to spring. the

Operator

all conclude today's does your participation. you for conference. That Thank

disconnect. now may You

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