AvalonBay Communities (AVB) 25 Apr 192019 Q1 Earnings call transcript

Company Profile

Participants

Jason Reilley	VP, IR
Timothy Naughton	Chairman, CEO & President
Sean Breslin	COO
Matthew Birenbaum	CIO
Kevin O'Shea	CFO
Nicholas Joseph	Citigroup
Jeffrey Spector	Bank of America Merrill Lynch
Richard Hightower	Evercore ISI
Austin Wurschmidt	KeyBanc Capital Markets
Nicholas Yulico	Scotiabank
Andrew Babin	Robert W. Baird & Co.
Piljung Kim	BMO Capital Markets
John Guinee	Stifel, Nicolaus & Company
Richard Hill	Morgan Stanley
John Pawlowski	Green Street Advisors
Alexander Goldfarb	Sandler O'Neill + Partners
Hardik Goel	Zelman & Associates

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the AvalonBay Communities First Quarter 2019 Earnings Conference Call. [Operator Instructions].

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

Jason Reilley

and Thank Quarter AvalonBay First to Earnings you, Conference Jessica, XXXX Call. Communities welcome

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

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

Timothy Naughton

slides night, Jason, to all Q&A. provide Kevin Birenbaum. we available our are With today and me Breslin on Sean last we'll afterward O'Shea, Matt welcome Thanks, comments the brief and posted I Sean, and some and QX will then call. Yes. for that be Matt

progress comments focus our Florida. markets in lastly, of expansion a Southeast on activity summary providing development of Denver Our and will overview QX results, an of and

revenue X at in the growth, a same-store X.X% in X. for Interestingly, was X.X%, core Slide time solid on NOI by growth starting years. first X%-plus over region It same-store posted respectively. X.X%, growth revenue driven with Highlights now, internal same-store every quarter. of growth So and FFO and healthy coming include

portfolio Boston In through of QX, communities at investment we XXXX, cost equity million primarily development towns the at secondly, an X.X%. $XXX external $XXX the the average capital capital from recall of and raised And in initial X/X of as capital, lastly, earnings deliveries we late quarter's then market, CEP from year; of suburban that we external being to at from very in earnings a Hingham the raised and two our to you As in from area due capital of X.Xx yield that and balance quarter, significantly in attractive being million XXXX dispositions. most relatively our from totaling this X.X%, cost apartment the higher The D.C. in expect raised initial a the and of little lower Sudbury cyclical was remains activity, call, debt-to-EBITDA. contribution leverage low completed of last disposition. this

So who with will over I'm lease-ups. operations, Sean? including it in Sean, to to going now performance our portfolio turn discuss that,

Sean Breslin

right. Tim. All Thanks,

slide on the X% level QX. This Turning to Slide fundamentals X. represents support change a continue healthy rent average, to during X-quarter reached same-store which portfolio. rent trailing change in Apartment a high

our portfolio. As rent combined in of pace X% the range we we've growth believe new growth, X% and in X.X% with for job the supply stock, roughly highlighted the of past, of supports wage to recent current

which X.X% primarily produced of was basis X and specifically. driven pool QX XX overall what year. to This to roughly was of same-store Coast points compared Slide represents last points portfolio, Turning rent improved by to XXX during change achieved East address our Same-store performance we the improvement above XX% XXXX. QX of or basis

in achieved the been both rent quite and Coast, better change healthy growth On tech-driven California the we West Seattle Job markets. regions. Northern also has in

actually pace it's last fact, March. running of In through ahead year's

California XXXX. the short Southern only QX is where region of change fell rent

start on year X to the it that months is weak to roughly fell for was full XXXX. XXXX, X.XX% While off last and rate a job growth in half the about region the in in

portfolio. development the Slide Turning and now to X

been performance Our has solid.

budget, to communities very the X.X%. capital Matt I'll total be over weighted are cost X% during development that, expansion plan lease-up projected is is rents to with of stabilized a in about to XX the For talk ahead further within healthy pro X% X The forma. and trending expected points QX, turn markets. average of it basis at And and ahead be of about Matt? underway our to roughly yield

Matthew Birenbaum

Thanks, All right. Sean. Great.

X. Turning to Slide

development completed in million generate We those and expect are currently stabilized. $XXX the $X.X NOI communities billion once in to annual underway

bit that of about through that growth move to the as those in flow As very this good of next it given the we the deliveries, unusual earnings lease-ups and should for talked timing begun a individual to little few be but a year quarter, last of over NOI completion. projects to is has us yet, source years

in $XXX regions While the indicated of shows the of to legacy NOI to fund of development stabilized and exceeds share. on or would If this NOI, our $X.X construction, be thought years apply from to in capital give assets rotate ago, intention there strategic I X.X% these capital the of to capital the Northeast projected Southeast announced some tick is million projected cap creation million Slide some Florida. a a be billion, a X which the of per I $XXX would complete exceed of the out and in our our new to underway. value markets easily on their these brief remaining country. market also should expansion $X.XX cost expansion still the of we rate completion About by sourced. our progress up markets in value update our the to costs roughly Denver footprint to begin X.X higher-growth we

mid-rise are to to million high-rise. XX, local garden this ground X submarkets and acquiring on $XXX portfolio partnership assembling and had stabilized Slide development begun with Southeast in start product shown brand-new Florida, effort types, a X communities breaking good spanning X,XXX investment diversified and in we sponsor. on properties over represent in X different a As on apartments community These a a from different a X

XX. Slide to Turning

so some the far. remarks. it so joint And structures a indicated developers have footprint hybrid rights This to presence suburban to pipeline. been and with portfolio where million market, across and even our meaningfully X activity continue active on grow generally a over goal in more again, puts long-term that, development X,XXX few Denver more us allocation own development the a one expect additional with with X submarkets I'll diversified variety We've we local concluding in a of we site, track venture back for Tim completed years. expansion of with next over and of $XXX to via to currently We X% different communities units, turn development to acquisitions, each

Timothy Naughton

yes. Well, Matt. Thanks,

for as with So we're to revenue capital line years, was QX we're and just and X% with better in generally overall, Thanks. Same-store redeployed expectations, through And than our and of to range to bit the performing quarter And that, progress delivering results over meaningful of Jessica, solid now mentioned. billion a markets almost several X% Denver to our lastly, development well quarters. deliver acquisitions very NAV across making the continue call these last the Q&A. Southeast is $X footprint. in markets of expansion couple open Matt having in the or -- or with performance growth committed projected our The Florida, next with a portfolio good expected. over development improve growth

Operator

[Operator Instructions].

from of first Nick now We question will our Joseph take Citi.

Nicholas Joseph

the versus in of what but discussed East B? or You seeing urban the strength acceleration portfolio, market, within of trends are Coast A of in your you suburban terms versus

Sean Breslin

specifically, a our of But the portfolio, about quarters, majority the supported little XX chat points, A Yes, assets in that softer in of did has Sean. little you the outperform XX thing some when by one first I few about the Bs mean, is necessarily market. been over representative bit, not assets our Happy some of for is Nick, portfolio in to Coast, in by at mix past really B it's keep you the on like. years. of As higher in mind the time and acceleration bit to point if look the that which a QX, but price basis East about is

we A/B So have that of seen mix. terms in certainly the in outcome change

look market A at side you point Axiometrics, at B the pretty imbalanced this across sort look in product it of you or much and they're the our If of and showing terms A of on improvement it broader between in Yardi at by footprint, coverage the Coast. supported also East

if still Yardi basis or to our In again, about Axiometrics, terms are urban-suburban, about across market points portfolio. spreads look to closer by sort in that you urban relatively of of points. wide, spread those at And XX is XXX looking suburbans footprint, outperforming basis XX the

portfolio So still and seeing but market. outperformance by varies

Nicholas Joseph

are you residential also Columbus can lease give you on And in. both then of process just an retail the curious in units Circle, terms where on update the marketing and the if in

Matthew Birenbaum

Sure, Nick. I'll one. take that This Matt. is

have there floor. leased, XX,XXX all square feet has picked remaining Since what the portion square On bit the ground that portion of retail of square X of the across side, is just and to the folks, second floor we XX,XXX X in a of the retail of About a including little feet floors. XX,XXX discussions and of ground the up, I'd last call, second the remainder and well. activity the of floor subfloors, total we actually floor feet is good the space, XX,XXX for including as of of advanced a say are in remind

that on to the lease, have we'll to in we proceed seeing come, will deals those are quarters there. hopefully, strong to report and but more activity So

the starting open broker were On earlier on office there our month, presales list. the just out we residential this side, contacts sales to that with did really

public So a probably we're general weeks off yet the couple of of to walk-ins that. We're from away not the for open kind street. still

get on sales side. the just on but call. will I'm more detailed activity we really expect and going we to activity we're our not sales second update to It's residential on yet. the do on quarter So a comment early read provide early, starting that too now

Operator

take of America. Jeff now will of Bank our from next Spector question We

Jeffrey Spector

Hopefully, can me? you hear

Timothy Naughton

Yes.

Jeffrey Spector

Great.

Sorry.

there. guess macro. interruption Sorry, an there was just we Tim, could big if about the I talk picture,

the economists when trying strong. things recession your internal but any weakness solid rev the will first I none us predict from the -- sit, can't growth where everyone's in exactly and opening the pretty remarks, years. to X% of I again, are economy for seem growth, region future, figure to every in or X I but guess, you healthy just estimates, listening the time posted your know think come. you maintained quarter, out

Timothy Naughton

we Yes, when really a expect has a we growth. much X.X% supply did hand, bit economic from mean, year markets. We're the was to and call changed stronger our X.X% on far gave the low But of I we projected job of you XXXX. X% Not prior from growth we say though less expect mirror recall, other the it growth, in or course image -- I wage in quarter little do ago. a guidance the out the outlook more our Jeff. things over our for maybe we played moderate down would of be that I'd on projecting a that. growth so growth of be as or wage bit more a as year at think, what saw expect We range. the say from do to

that, wear -- our mean, Now the in to a based upon bit growth on reform on global view global from I don't just starting the growth, think little the the -- we stimulus of changed slowdown just off. tax I

months, last at X if we our are York regional you Northern but spoke what at a little or bit there a months about area job If the been than anticipated. bit line X seen growth, stronger -- we've look you have less differences. in New and California, with expectations, Sean over more look

of little bit, time, little in sale the couple a pricing. point. California, the you consumer homeownership really years. But hours I what seen think today. in terms other confidence thing probably for three that just you down have one for of that's the just terms performance data as indicators actually ago is those Southern portfolio It's now, volume maybe slowing a weaker, may but of we when bit, and different the right the are I combine of mentioned. for months think, rate probably just leading in down last certainly expected reflected the we're Sean came been terms XX is watching have a things And last both being in as And in than first down with

Jeffrey Spector

the particular, East you in I year-to-date? Okay. City on are then, better was Northeast, in follow-up, the my maybe Northeast guess, somewhat And than believe I XQ. just what commented Coast the better the in seeing one you that I luxury or expected York New end that than guess, region, Manhattan, expected maybe was

Sean Breslin

expect response much to in better think, the it are, tell somewhat bit. I East the line, we is where I Yes, for areas, way Jeff, describe as Coast maybe Sean. as Happy it the little that a I of say, in it, too, footprint, pretty mean, part, to things that to to about would his mentioned most about you Tim slightly the a couple prior question. relates but across

specific you the to differences, Metro give of or there examples, Jersey area. are so terms markets In and in within submarkets New some York New regions,

an pricing pretty example, some is in it, and plentiful, City, most say, year-over-year. the and are is some Jersey pockets these in what's driving is what case X% in York terms higher-end acceleration improvement, As greatest the last New New points submarkets, really in more say, better Westchester, absolute really X% higher-end of on where about more New in doing than power the Northern priced the response, are you quite of as it the moderately question it's in of markets seen. of if suburban some points and, mentioned in supply seeing assets. That's a helpful. higher-end New assets. to York the terms price we good between the Long dissect And certainly strong, has are and impact I the more of the where I'd price the what Island been in York almost which around difference other And B, City and X%. of But maybe That's like we've

point, the So example district is or on it's -- a just specific as being this proper the and suburban Maryland a Virginia suburban of Virginia, side D.C. are much opposed now. weaker is healthy delivered amount in to function of Northern right more the supply at

Operator

Hightower Rich from Evercore comes question next ISI. Our of

Richard Hightower

this call, just bad for -- the change earlier want walk quarter. same-store and maybe the to accounting debt on about but of kind know of I today, So I to benefit we've talked the just on the everyone impact its through during

you so same just blocks help understand understand us we're performance building occupancy, can across in revenues change, collectively accounting other help So across the all the market us better-than-expected just the rents, page. the breakdown and on

Sean Breslin

XX the be But of One driven of rental Sean. I from it in of And questions the this points. level. that, is which the it, about XX really detailed in in appropriate underlying couple a impact of the call To off-line. at in rental reflection that bad range depending basis debt is take year-over-year is on and XX, made specific we XX X debt, some that like through points, between investments of a a revenue fairly QX, revenue Yes, broad of are terms that through and the terms differences basis second region. basis occur. the to that Why really data by well bad we the collection bad don't those that Regionally, a about high change ahead go points. what of factors. revenue the people that broad as changes or sort is there's drivers had is Citi lot But were that both residential January profile of extent don't of other accounts things had more may in view February. impact, TRR XXXX growth growth of in to the when and some in as points is for regional mentioned regions, our were we is communities we QX of that and -- growth we improve in the in our again, basis at conference in side, piece XX overall tenants we terms XXXX, to write-offs had particular, coming as of some the expected trending have retail debt it our to We in And relates processes. in of the certain analytics

it terms about it is is look look occupancy, performance outperformance, revenue way the So half if half and the at by basically raw you a driven the in of of QX other our of perspective. terms full I number component debt at bad is the from in mainly essentially just in

of points down reported On XX had OpEx remained the actually would side growth bad we points. basis year-over-year debt basis of XX been OpEx in QX expensed. things, That QX if have

Hopefully, on the that's that's So clear. full impact QX.

Richard Hightower

range there, have I on terms policy Okay. same-store know Yes. because the is you it that probably that everything. I that free But just a described? say given I'm fair we here, up to is you appreciate take because of go the we'll say and few to guidance wish? the a and going we at everything answer stab and basis, not not detail that of on follow-ups, but to feel next fair to that question Or in as interpret it should Avalon's a all-else-equal blocks building described what an can and

Kevin O'Shea

Rich, to this just we the outset, not to update second we're is before, Kevin. I guess, quarter. until say at the what guidance intending said

additional we on don't any really So that. have comment

be embedded known that's when in of question our one had year guidance in not no to we think, moved gave point guidance? would we the asking recoveries. bad in we changed if The debt what initial that bad beginning you're debt revenue, answer a have we in material forecast time is I at into would improvement is need the geographically did because that back our up

consider. those emphasize So I'd for the probably that you are X to points

Operator

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

Austin Wurschmidt

quarters, like-term believe. for You three rates I lease guys the now have on sustained a positive past spread

by spreads of or spread assume to level the does quarter continue positive a that same-store revenue rate guidance that sustain each you some So the those year-end year? lease converge throughout

Sean Breslin

this Austin, Sean. Yes. is

that, greater We XXXX. XXXX in like-term change, as rent numbers, that's the my quarter we year, change we throughout prepared remarks XX basis compared to the go year. to on said didn't quarterly is I in specifically rent be full average, expected the under points what for what but I think, expected last in

Austin Wurschmidt

Got bit provide on of you rate an update as trends? into it. And April a little seen you've just then far as can what lease

Sean Breslin

is Thus are April X% points above and X.X%, about of which through the basis June. Sure. rent April, the going far, for May range in year. is running offers XX, basically out XX change And last renewal

Austin Wurschmidt

And one for last me. that. Appreciate Great. then just

that tick within should as for far couple of last held And if you continue X.Xx to kind to As the now curious expect steady range have of quarters. leverage, just that up? Or a we really sustain kind under and forward? bit intention given of the to has your of ATM the leverage, equity opportunity ability to issue lower moving little now your that's

Kevin O'Shea

is this Kevin. Austin,

to think, I closing turns, today last where and year, as we City of opening our which is the I at driven by quarter, the was it last last quarter. transaction, debt-to-EBITDA the around is York Tim New where indicated dispositions alluded was net joint venture other remarks. in among primarily that it his our And as completed fell X.X that

that and So of as those of result a it really of selling we sort a so came a was about assets. portfolio ours, activities undertook. sort of outcome set objective wasn't direct of an of that It

of may past, a to financial are the we're in X this there. I are, we we've today, above we take are don't below full what a between in in It relatively be we'd might And we incremental haste our mentioned turns. to now. that little probably somewhere any more over cycle, we comfortable cycle, As that a I bit ticks comfortable like little leverage where and the little there's turns, say happen bit, be At bit have and preference below out where great flexibility point be but it or so. like is We X little opportunities that is to think that. a we being run while around and X bit to doing I'd be have with feel up advantage a guess we're our

Timothy Naughton

of the just Kevin, for terms was of mix. maybe just this what of remind Austin sort in capital sort plan year

Kevin O'Shea

Yes. Sure.

in newly of we the couple And sourced issuance. plan we capital net market million. the a that reading we to external of form million the know the hundred our and where issued reference, release, be debt, in other half planned the of disposition with And billion contemplated which in would capital, we when today. form began of of million We've got terms today, of assets year, of disposition half equity sourcing $XXX as from $X probably the for we or equity, Just activity. come activity, net then roughly $XX sourced an terms are so in during in initial as a you XXXX

say plan. we terms the think plan, roughly it So market terms uses changes we capital and capital in are we're stand of today, can I of change where conditions of the in I'd certainly while based on in capital on where kind intact

Operator

Our of next question comes from Scotiabank. Nick Yulico

Nicholas Yulico

this drop expense guess quarter, a Just same-store costs. unusually payroll office year-over-year I and X% have question the on and looked growth, you in that low did

You lower talked about bonuses, overheads. lower

did hear expense bit that quarter. So and and which flat think same-store about first more was only versus in the I -- how we should I'm you that little guess just the wondering over a what guidance about this what drove just X%, year,

Sean Breslin

Yes, take that Sean. Happy is Nick. to one. This

As pretty it it as QX, out, our as relates go we good some last as you year. pointed had to a things comp way well certainly as to relates

side. the had the marketing certainly benefit side, utility it certainly on some So on

the noted X% in As basically quarter. property you taxes were first maybe,

As things categories. these some to up see we pick move you through start of in the other year,

example, for merit the the kick over in next couple quarters, you'll on see increases of So side. payroll

had tax appeal in You'll the We in, helpful the see which of as benefit in as growth property rate reset Seattle. more us a kicked first to quarter. was that well normal an

have a things So second and those that. that like and in in not utilities then comp the helped some of tougher on things will quarter one-off first in the you've QX recur that quarter, we us got

see see little -- certainly you'll to a categories except we bit a benefit that had QX, up expect tick in across multiple pattern. a So QX, start in to and

a next maybe and should just some it couple about As it of how relates mention. you couple things and to over things to the payroll other maybe years, think

exposure. this property have So materially have of don't on tax cycle, we XXX-a lot assessments a grown side, the

couple I over the X mention are then to So than been growth, couple for growth should a contain to other maybe OpEx things And a next tax One that terms that years. is payroll, being know, investing be additional working in about certainly or touch to which, other number in we expect it's OpEx. of well will consolidation on couple X about us property a continue just And allow X.X% initiatives reduced years the of able in contain examples, less maybe categories. and of last by of been is We've few efforts, to payroll the as just in our you through office of us that future. growth of XX% to a on-site headcount cite QX. potting the year-over-year

addition, automated our an QX, AI prospects. between and we facilitate agent to during launched an platform In interactions

While the a use be our to little being us platform to allow seeing our opportunities mean, doesn't communities. in staff on-site and about I require effective. leveraging it's from experience runs centralization, automation done we're staff. both service model a rates maybe allowing to more XX/X early, other that interaction at is customers technology different investing still and our sales enhance which conversion efficient also think but better and self-service we're bit and all to by that's overall, And And our for with

other in energy other only and XX as not our a tools certainly side, the lot of the areas utilities on things customers. of And doing and sustainability number we're our about couple in that's helpful, search self-service this renewable great think penetration and from our a with about terms payroll efforts months of we're website launched next marketing ago that making year we initiatives. where for and seeing great organic we investments over of but So also years,

So schedule of those reduces some can bypassing tours online, the call which center, they costs.

pay So investments like the to while these areas, we we're and couple areas maintenance, maybe facing some think in repairs for off do other next over pressure are years. of overall, of us some in going

Nicholas Yulico

helpful. Okay. That's very

in your could happen look Can some break York rent much the suburban just if Metro of York of any New guess, be And focus to, the June. In of you we control still terms units when New of there say, how XXX-a where you're changes assets, subject much within stabilization more there how are taking could separately, New a out also City, tax of let's that York, own the for any you I is abatement? New getting portfolio, in rent XX-XX subject? at in buildings City, York just the

Sean Breslin

Yes, happy little chat about to that a bit.

As in you York buildings there's different classifications know, because of for complicated regulated it's and a issue are New purpose. what that

So it that's very of in that types known at rate is pool are of essentially only XX% X/X, rent stabilized X,XXX our capped low portfolio about or different for that to at with same-store stabilized us, stabilized that, -- are homes. very what with legal we're there's is apartment about subject certainly of But a buildings Of rent market terms units, And levels. of rent. about, about as what X/X roughly talking which what's is the there's market-stabilized. considered XXX-a

you a probably understand the as position what's are in it. way effectively paying describe known they are to is to the if others a terms, the where So lease loss preferential simple rent,

terms terms same-store So being lot things a talked have what our of in of that's in of we be There's York about assets. impacted. what in would

For focus what some with debate to to chatter the much those get trying market that that. know that particularly typically know, the out assets we'll there as associated about get pretty And we happen price people and the point, seems should June, to based on in as of the time certainly There side, we're on a certainly we like are May target but not of are on spending side. there's rate market with assets we of where what and things that what point the strong a is energy price is rate a hearing more policies lot displacement on some lower but based issues be well. greater into as the are more figure regulated through a REBNY on organization most part, lower as much

Operator

comes Our next of from question Baird. Drew Babin

Andrew Babin

bit. question pretty has quick concessions drilling supply aggressive. downtown been in in little on L.A. are a elevated and L.A., A Obviously,

or Given kind of if you be don't are give kind properties the many that you also update of quarter. in an that you within I'd in that helpful. April, I downtown have first will L.A. very where really L.A., progressing may occurred be any thought properties ask how And can things of some on in the softness seeing

Sean Breslin

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

Tokyo. asset are we in Little downtown You same-store in that L.A. and correct one have

Fernando revenue and well chart bit. of it slowdown show some terms it's we But is distribution L.A., of relatively widespread. performing we're price right assets, assets the the L.A. seeing the I'd a in pockets Fernando the we there across of sort the individual that you in little little growth. I'd in the Fortunately, San in at at But look you call, of expected where maybe that are more anticipated San now. Southern a at It's certain a the the the Valley California, the is it's quite point weaker, reflected actually during we where as margin specifically. Valley rest in But bit when say QX say where slowness presented

expected the had it was we region already California Job growth down. only to to started Southern where slow. be

would so what anticipated. be say a forecasted for Valley I bit part. might we as that certain pocket in Fernando we most example the than And little weaker an San a

don't little a of in as gouging Southern is caps will may this think issue about as some anti-rent place short-term result out last bit year leases that premiums it you fires of execute through a there generate are year. place cap Los that impact play people in think it ability of are summer it's be season. of parts a your while material, not XX% I clear to from what in now and the being is Angeles right November and does And Those through XXXX. throughout California the at caps the

different that you that customer come And to where customers, of of L.A. summer rent the this generate increase so more incremental can't typically because of see was for nature revenue for in through types than same leases prior at short-term of amount the a the unit. and year last is that it some specific you of as did the paying through the anticipated caps the year extent by not might that these acceleration XX% you variety

those L.A., environment, would little than some the too are been in weaker say, would we as have it's but terms of well, across not a at off. So of bit I far but nuances play anticipated

Andrew Babin

sort -- on Okay. quarter. growth Obviously, one Bay. it guess California bit hasn't first Northern you better than given That's if than would Oakland that follow-up into expected? performing of of the with the little And in context you expectations, been with East Bay quick would I then of East supplier of a going markets year, the the could the is what revenue helpful. be you about was you expected talk one slower say doing in helpful during line just kind it weaker

Sean Breslin

well, expected the well of just we certain I'd several San in much. there factors, different nature Yes. A Walnut and quite No. to expect Francisco San assets certainly assets Dublin Good as growth of that supply. job perform Pleasanton the that than as Creek East our but combination footprint the including say We question. are and performing better in not as quite across the Bay. of pockets Jose

Francisco. probably So through and and it's as San tends and East rebound where, places in of Bay of San performance seen lag, well. in come a lagging is, it of lagged those those We've areas, both as the year, know, sort to one East Bay market the Jose this you

a not surprise. So

Operator

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

Piljung Kim

uncollectible trending in to breaking it or years? last the does And it is going future be something years? the been how few the this revenue this that Or to you're because lease just And really compare has down debt, year was historic levels? out On change? figure bad accounting over of this

Sean Breslin

Yes, John. to Happy that. about chat

efforts the of bad One, this the which year of led well pursue that had the in would year-over-year it meaningful some really had quarters over residents what terms as customer we we and two particular. we our two months, now, the the theory debt, to data good put that I as reduction analytics, on care to last you'll point made investments bit screen I'd meaningful In collection relates terms impact we I specific, one, seeing recently little Certainly what and revenue right center moved-ins a year in the those terms things. fueled increase we to outcomes have XX QX, of out. so next the by that queuing see say. in our customers in that be communities couple some pretty the the in over over driven through in numbers both how coming into of or than mentioned And has how terms last a of most normal in of we're as sort say, XX Both side. basis cohorts is saw play year-over-year of change, more collections

QX earlier, that helped certainly, had couple of that's And have a don't that had I So big I 'XX, write-offs of we us. retail also lift. mentioned QX, then, XXXX we a in in QX think

So economy. I with certainly would say, the bad the cycles it debt,

Recession, a So seeing is our and in the collection Great primarily bit of better but I'd customers you're the now it's incremental quite data from really side. function screening the say come analytics that and improvement a investment down

Piljung Kim

it just you And forward? Or to listings? going are this going provide figure then is

Sean Breslin

that. address really sort that of for year year. forward. don't this us. transition doing going didn't just just a for We Sorry, anticipate It's It's

Piljung Kim

you're $XXX Okay. Looks year? for of I million still for the starts on was the like in wondering this have development guidance track you quarter. your starts didn't if any

Matthew Birenbaum

see. We'll Matt. it's John,

The deals tend they're a moving exact these I does going think We certainly through. of to at projects identified, least this little couple quarter. all to a specific timing on some there were bit. start move of around and are

have We quarter a too X, that So it's us it, we may miss cause couple slide but may of tell. would deals to a it. or hit early to

Timothy Naughton

And of what for our John, we as well, we'll as certainly expect guidance update, update that. part midyear

at it's said, update to this of on premature Matt that you point. As kind

Operator

question comes Our Stifel. from of next Guinee John

John Guinee

quick that see sell of in you and Can to pinpoint Arlington. One A located surprised is sort Oakwood we're thought exactly Arlington, that's where questions. couple you process of pricing? in given all your hype the

Matthew Birenbaum

Sure. asset located unusual portfolio. Roslin. Matt. asset a our in XX-year -- late that's very or very asset It's vintage, was This old was is a in That it 'XXs unusual

and So Oakwood asset of it and that operating here actually We the was was housing, the it furnished its leased nearing who acquisition, that end term. acquired to as actually and in master Arlington master Northern Virginia. through Archstone lease was

taking NOI of was required to where the that I community. is buyer. think actually think it a it go, we back So conventionally expected looked when a be about was at to lower had which cap, market operations, X if would the capital the we operated and Oakwood we it combination than been And

fit with kind well their as starting to of So of some buy assets. as actually program assets operate it

a there. negotiation just had lease necessarily of a combination it. to just price, owning of that and it. in was of they were in extension. had events it sell We an interest weren't looking became So unique estate, the clear an at selling It We real the interest part we

John Guinee

did year? of for particular, What terms next cost What you XX increases? you but then And hard the in are regarding the see And seeing? costs question XX, your second hard elsewhere. projection Great. in D.C. in Washington, last the what's months at

Matthew Birenbaum

at others, compared of to I muted. guess modest. -- Yes. D.C. more has cost certainly, chime it's a It's in. The and But again. exceeded take markets, hard has to can growth, that rent free been one, I has feel most Matt which shot very somewhat inflation market our been been

Coast ground call actually in in of break still down. X% and come the I'd just wood numbers inflation hard on on frame probably seeing that. mid-single quarter, it of Lumber ready a is the project to still has suburban high we're single digits, fairly Other so West have this markets, getting Baltimore digits terms cost some commodities. we probably maybe. to X% actually do So current We're

hopefully is that So labor. the still, but help, start will to driver overwhelming

One things very West a aggressive a its have on a availability that's, subcontractor of coverage bids. precursor. inflation, seen cessation has we recently yet into not not bit necessary way is I'd the the sufficient That our pretty pick but say, through up but just of labor chased better on Coast little and

to XX over So it forward down XX but comes it's maybe, next the little very months, maybe bit speculative. a looking

Timothy Naughton

this John, Tim. is

a As pricing. been here, deeper subcontractor not have you know in of only to tend D.C., construction and the so we've periods sort swings development supply. same market We had it's of always kind and of

think of got year. next over the and up dramatic never anticipate disruption really we saw of the we in levels when production highs to the mid-Atlantic sort West So Coast don't cyclical even I inflation here, so

Operator

Our Hill next Rich Stanley. Morgan question comes of from

Richard Hill

for come wanted I to a New York to just second. back

from past nice there had pretty New York vocal widespread. this it away in been you that markets, And higher were the obviously to market. growth was believe in You've allocating commentary maybe that a City led me about some but to rebound

think focusing make maybe most labor reflective curious, City New properties of I the Or So sense really your the and York that I pruning greater as in you am your on is as it's do area? it widespread portfolio of perceived? fruits

Sean Breslin

of not the earlier, think, couple little better, Yes. this York is starting bit markets just for a QX say. example. are provide Sean. to that. compared in suburban show in Happy a comments but to performing let's to City as the as is a Rich, I on Long mentioned, an X% was X.X% change only life, I Island gangbusters it's city probably as some I going say, I with mean, New mean,

So pretty say I would assets are have that same-store pool the that we the in today well-positioned.

newer a X of the doing is is particularly which Long well, Greene, Fort example, leading submarket. for that fine So in the different delivered in product lot as the being of around waterfront the point a are growth, Brooklyn charge sort Island of at on our but price high-rises and revenue City that's from terms assets

on So amount assets neighborhood, particular the improvement, that in and of delivered seeing performance I'd impact a supply the of are say, being the specifically. we're depending on overall, where material you in and has city

Richard Hill

to ongoing then, was highlighted presentation in particularly how quarters and Helpful. your which push you effective And head about things now. couple is the investor into are leasing you Okay. occupancies here? that well-positioned you of rents do thinking portfolio the has from in for think some of curious, as for I'm one increase versus you rents, I a guess, peak rents? season, been your And

Sean Breslin

of from a one. an asset. we're an occupancy process like a efforts feel only not would that is push try terms that asset-by-asset ongoing, the submarket-by-submarket. Yes. Happy behind rents, standpoint revenue position I it discipline guess from it in take process management lot with blended to optimize group that I certainly of revenue research to It's ever to an has a growth That's that but to say, in we market a our from is

occupancy of So that. it's protecting trying in In district there's cases, extend the rebounding, lot duration. more one or parts it's Yes, generate maybe market of that's one yield a like now right strategy. lease where In slightly occupancy or a of we some renewal a more to move-in Francisco necessarily to answer that's rates. Boston, better like more a San supply rates not in solve all to might

nature of from changes comfortable asset ongoing environment. how asset So We're and the it's to on with process. strategy positioned, an we're the depending the

Timothy Naughton

Rich, Tim here.

at be bit that. a entire that think, think, to of, a a markets, across does push going it's as function, is vacancy add what's ultimately, and to is And mostly -- pricing. additional But you low, to just housing the support, healthy really and XX-year mean, look as interesting I for-sale the provide said, supply some sort entire maybe I our demand healthy I continue across to been particular of market. Just housing cycle. which little market, Sean within but it's is occupancy homeowner including to single-family,

Operator

Pawlowski Our next John comes Advisors. from question Green Street of

John Pawlowski

New Real I would out, feel Estate plays most to units Albany, so percent the of scenario on your what impact? political comments New some York Circling sort the York's scene of likely of if back your Board guess, in

Sean Breslin

of but that what we terms can the very this is the charge for low out, on It is rent assets There's focus X it Sean. plays really us on John, in impact how units. own. for regulated on we depends risk

kind think as XXXX well, together. go a of rent recollection it's date that threshold I also of on that construction, X is date but those my is variables of the terms in

in So the be would X negligible, that impact case. specific

John Pawlowski

Sure.

vacancy all at about contacts your political aren't the concerned control So threshold strengthened? being

Sean Breslin

some they're New relationships sort California there I that case would not in the they're that there of both say and wouldn't -- in pretty deep apparatus, working I strong issues York, you certain concerned. people the with those are to they're educated make are be organizations to want that policy if call political sure that that, they're of unintended adopted. working relationships, the about of could consequences it say

that the just means, X And in been have, based particularly the so those we guarantees have by future. we on what we successful in the they but today. in think efforts, states, hope that's with past and the any be organizations that would successful No know

John Pawlowski

being Orange Sean, then, about start, XQ? early And April? sluggishness your off the comments a the County County has to Understood. And Orange for stats you persisted in slow some in can share leasing

Sean Breslin

look out. I and Southern Yes. Diego. County case you if the San to mentioned anticipated other into the we That certainly laid say, generally, had revenue it has weaker just across been across growth markets and year-over-year April, markets as I'd L.A., than in all X QX be Orange earlier, that continuing at we California,

than seasonal range. Fernando was and April, look some San Valley at range. to Diego, X% in It County L.A. actually If but for from QX more that's you perspective kind mid-X% rent of of in example, the more We're Orange seeing into else. San it X% is in the and change, weaker the in acceleration anything

now points, San X% blended almost you X% give Orange some Diego. on to April, right we're in County about So for averaging and basis L.A. in more a reference X.X% like in

in terms would you we better healthier growth, geography. when of putting that environments So certainly we But where be to there's compare obviously job numbers change that better in had the have of terms that up lift. to across component some rent seasonal would

Operator

[Operator Instructions].

of We question Goldfarb our Alexander take will next from now Sandler O'Neill.

Alexander Goldfarb

they versus give if a is, you with question the initial Tim, New XXXX if assess the you I legislation just buildings. have first just chance to So mandates? for how my would a you have, towards sense York back trend energy legislation us know the had guys But recent again don't your to efficiency passed, can going you guys

Matthew Birenbaum

can to press, speak it. of are I probably are buildings off the It get in is Alex. in one, Sure, and how would There's bit. continue and still we Most bit hot But make a rent-regulated the Number still it, a exactly couple actually are wide few place they we're little But our exempt, most there may cogen believe This would targets. little few performing solar investments look things. to a that things. over, so obviously XX today with well. a that not, digesting we I a to it's is but perhaps that our of pretty and be meet be buildings. But which a buildings are might net units cast. Matt. that our that score as XX at other unclear buildings

been well-positioned. we've we're in I area, pretty actually So leaders think this and

Timothy Naughton

just add the there. for to that buildings building have and to Alex, City, There's have really we which one a on us Riverview that matters little units, bit. in Long Island cogen that is doesn't regulated

that to pretty we're one's comfortable clear. going So

Alexander Goldfarb

easier sort then invest, there would you lease-up where in change maybe helpful. where according Denver more whether in, then has you some develop in ramp That's changed have Okay. assets billion you've initially been submarkets. any it's finding sell as out there something? And Or it's more thought want plan? to that Has second you or put to you $X that anything changed the developers to or are acquisition and you who maybe -- you now and South or what of guys up their are still things you're would Florida, development question is

Matthew Birenbaum

reaching Sure, expected a of going way we did lot those been say, we we vertical to said we've markets to on active be it Alex. Denver, that acquire, know build that on. been which developments personnel had with a Matt. those to that I didn't in any put responsive more We assets sooner that given markets, expected to focused were year, -- activity And out just going were way of hoped. diligence do of so been actually it's there've pretty say, a in there's goal for into not would and in new process. it we X lot market time as was It's we X% both and this of a Yes. much there some those We as frame particular that's each, own but we had go to I'd because we merchant others our actually through where site played knowledge one that start and we of have we hopefully. markets, the their working later due development will in conditions.

So above. all -- the but of

talk to We we we continue acquisitions, development to about and to for developers look sites. continue to look JVs, for continue

I'd much had continue to we So pretty and allow. say, what market proceed been, hoped as for, opportunities we'll it's

Operator

question final Goel Hardik Our from of Associates. comes Zelman &

Hardik Goel

quick ones. two had I

similar markets in D.C. guys So in on some something in regards transaction being the Have people, York June meets board to that heard noticed you sluggish. back with guideline one rental first and as investors there? New market slowdown New reports and before the some holding D.C. in York, the We were transaction

Matthew Birenbaum

Hardik, it's were transaction in at not active Obviously, right market this Matt. we the now year. New York We're moment. last

markets can't quarter, and control other I been bit the I the in some than in as was transaction ordinance of older down bit pre-'XX has some a concern little rent Again, specifically general There to that it a comment relates little market about think assets. constructions. changes first concern on to in that's there D.C. our been has in So

which market tell TOPA the because may law, to it's the there you slowed but little some organize gives and have that third-party So tenants the in transaction changes to D.C. there that to were building buy bit, a right hard match offers. have the

in X were to months D.C. transactions transactions So earlier. closing struck any see you XX anywhere are from that

today, of impact extent assets the closing couple the statistics market the in for that an the on market in wouldn't So with there's you to necessarily see another quarters.

Hardik Goel

quick reporting the is one I'm getting way number. just change, to that And range? into in The or X.X% the have pool? and that up of is the rough your your Do pool. XX on the same-store to understand debt from remaining not change, the units rate points another or growth that units and be between basis the you you I mentioned, you gap give is XX X.X% and it X.X% for roll in comparable seems change the to growth bad a guys a so. your rate, revenue the Can it. the incoming I if same-store the me are pool sequentials, as Got the

Sean Breslin

is this Hardik, Yes. Sean.

almost that For that has and the the remaining XXXX development activity XX% the it pool, growth was than in in pool, the normally to little into in X% is was greater same-store is. from that pool stabilized and low entrants rates of a redevelopment those previous the range. It assets pool

So they than are the base. growing faster

sort So that nudges bit even, debt -- change bad a the as in rental some with other that up communities, components, associated more changes big through -- you pointed then and the that those out. are that's revenue coming of little

Operator

closing to would At This time, concludes for Naughton Tim today's call remarks. to I this turn the question-and-answer session. back like

Timothy Naughton

today. given on look all Well, seeing good earnings day. June. for of know I thank of season, call you're you beginning a many being the NAREIT the you, busy Jessica, in Have to and and at it's forward we thanks

Operator

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

disconnect. now You may

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.